Cascade Bancorp of Bend, Ore., posted a surprising first-quarter loss Friday and said it is still working to add capital.
The $2.3 billion-asset company lost $3.9 million, or 44 cents a share, versus a profit of $6 million, or 22 cents, a year earlier. On average, analysts had expected Cascade to post a profit of 12 cents a share.
The loan-loss provision increased 233%, to $15 million, as nonperforming assets rose 540 basis points, to 9.39% of total assets. Net chargeoffs almost tripled, to $12.4 million.
Cascade's loan portfolio shrank 5.1%, to $1.9 billion, primarily because of the chargeoffs and "management's actions to reduce nonrelationship loans under the present adverse economic conditions," the company said.
Cascade has applied for $65 million through the Troubled Asset Relief Program, and it is negotiating with its largest shareholder, David F. Bolger, for a $25 million infusion. But Patricia L. Moss, its chief executive officer, said in a press release that both private and public financing are uncertain, so "we continue to diligently manage the company as if capital raise efforts were to prove unsuccessful."