Cascade Financial Corp.'s stock price fell 4% Friday, to $11.48 a share at the close of exchange trading after the Everett, Wash., company warned that its reported first-quarter earnings would be less than expected because of bad residential construction loans.
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The $1.4 billion-asset Cascade said late Thursday that its loan-loss provision for the quarter would be nearly 10 times bigger, at $2.4 million, than a year earlier.
As a result its earnings per share are expected to be reported as 19 to 23 cents. Analysts' average earnings estimate for the quarter was 29 cents a share.
Cascade also said that it intends to charge off $1.5 million of loans and that its nonperformers would increase by $16 million, to an estimated 1.5% of total loans.
