WASHINGTON — The Federal Reserve has ordered Bend, Ore.-based Cascade Bancorp to provide it with a plan to maintain sufficient capital.
The requirement is part of a written agreement between the Fed and the bank holding company, which operates the Bank of the Cascades. The agreement, text of which was released Wednesday, also calls for Cascade Bancorp not to declare or pay any dividends, purchase or redeem shares of its stock or issue new debt without prior written approval from the Fed.
Cascade in August reached an agreement with the Federal Deposit Insurance Corp. aimed at strengthening its financial position. That agreement calls for Cascade to maintain a Tier 1 leverage ratio of at least 10%, twice the 5% normally required by the FDIC for banks to be considered "well-capitalized.
Cascade Bancorp had total assets of $2.4 million and total deposits of $1.96 million in the second quarter of 2009.