Quarterly profit at Cascade Bancorp (CACB) in Bend, Ore., rose 60% thanks to cost cuts and improvements in asset quality.
The $1.3 billion-asset company said Monday that it earned $1.7 million in the first quarter, compared to $1.1 million in the first quarter of 2012.
Improvements to Cascade's loan portfolio fueled the higher profit. The company made no provision for loan losses after recording a $1.1 million provision in the prior-year period as nonperforming assets fell 18%, to $21.9 million. The Federal Deposit Insurance Corp. lifted an enforcement action against Cascade's subsidiary, the Bank of the Cascades, in March.
Net interest income fell 12%, to $11.6 million, as net interest margin decreased by 39 basis points, to 3.92%. Noninterest income rose 13%, to $3.4 million, while noninterest expense dipped by 4%, to $13.3 million.