Cascade Bancorp (CACB) has reported a 19.81 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $4.09 million, or $0.06 a share in the quarter, compared with $5.10 million, or $0.07 a share for the same period last year.
Revenue during the quarter grew 18.40 percent to $31.72 million from $26.80 million in the previous year period. Net interest income for the quarter rose 16.53 percent over the prior year period to $23.78 million. Non-interest income for the quarter rose 24.37 percent over the last year period to $7.94 million.
Net interest margin contracted 29 basis points to 3.43 percent in the quarter from 3.72 percent in the last year period. Efficiency ratio for the quarter deteriorated to 79.50 percent from 71.17 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"The Cascade banking team continued to drive strong results for both our customers and our stockholders through the third quarter as we delivered double-digit loan, deposit and revenue growth," commented Terry Zink, president and chief executive officer of Cascade Bancorp. "Our results clearly highlight the successful execution of our strategy to build Cascade into a valuable Pacific Northwest bank through both organic growth and strategic acquisitions. The Bank of America branches acquired in the first quarter continue to perform well as transaction volumes remain robust and customer satisfaction levels remain high, as evidenced by our 98.5% core deposit retention rate. We also welcomed Prime Pacific’s customers, employees and stockholders to the Cascade family in August. Prime Pacific is an important component of our strategy of building a $1 billion bank in the vibrant Seattle market over the next several years. PPFS will complement our recently opened downtown Seattle commercial banking center, as well as expand our Small Business Administration lending strategy in this market."
Liabilities outpace assets growth
Total assets stood at $3,174.82 million as on Sep. 30, 2016, up 28.63 percent compared with $2,468.27 million on Sep. 30, 2015. On the other hand, total liabilities stood at $2,807.82 million as on Sep. 30, 2016, up 31.41 percent from $2,136.68 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $2,034.35 million as on Sep. 30, 2016, up 25.64 percent compared with $1,619.24 million on Sep. 30, 2015. Deposits stood at $2,745.08 million as on Sep. 30, 2016, up 31.79 percent compared with $2,083 million on Sep. 30, 2015. Loans to deposits ratio was 74.11 percent for the quarter, down from 77.74 percent for the previous year quarter.
Investments stood at $664.60 million as on Sep. 30, 2016, up 51.07 percent or $224.67 million from year-ago. Shareholders equity stood at $367 million as on Sep. 30, 2016, up 10.68 percent or $35.41 million from year-ago.
Return on average assets moved down 29 basis points to 0.53 percent in the quarter from 0.82 percent in the last year period. At the same time, return on average equity decreased 163 basis points to 4.53 percent in the quarter from 6.16 percent in the last year period.
Nonperforming assets moved up 62.15 percent or $5.54 million to $14.46 million on Sep. 30, 2016 from $8.92 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.46 percent in the quarter, up from 0.36 percent in the last year period.
Book value per share was $4.81 for the quarter, up 5.48 percent or $0.25 compared to $4.56 for the same period last year.
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