Cascade Bancorp said it plans to restate its 2009 annual and first-quarter 2010 results after a regulatory examination showed its reports for those periods could "no longer be relied upon."
The Bend, Ore., company said its audit committee had arrived at that conclusion after regulators examined its subsidiary, Bank of the Cascades, in March.
Regulators told the $2 billion-asset company "that it was their opinion that the allowance for loan and lease losses was underfunded" in those periods, Cascade said in a filing Wednesday with the Securities and Exchange Commission.
The restatements mean Cascade's net loss would rise about 23%, to $114.8 million, for 2009 and its net loss would shrink by 5.4%, to $11.3 million, for the first quarter of 2010. Cascade said it expects to amend its results no later than Sept. 15.
