Cascade Financial Corporation Reports a 42% Increase in Quarterly Earnings and a 16% Increase in Year to Date Earnings.Business Editors EVERETT Everett. 1 City (1990 pop. 35,701), Middlesex co., E Mass., an industrial suburb of Boston, on the Mystic River; settled c.1643, set off from Malden 1870, inc. as a city 1892. , Wash.--(BUSINESS WIRE)--April 20, 2001 Cascade A connected series of devices or images. It often implies that the second and subsequent device takes over after the previous one is used up. For example, cascading tapes in a dual-tape backup system means the second tape is written after the first one is full. Financial Corporation (Nasdaq:CASB CASB Cost Accounting Standards Board CASB Colorado Association of School Boards CASB Canadian Aviation Safety Board CASB Catalogs and Surveys Branch CASB Chinese Association at Stony Brook CASB Council for the Advancement of Small Business ), the holding company for Cascade Bank, today reported net earnings of $1.20 million or $0.20 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the three months ended March 31, 2001. Net earnings were for the quarter ended March 31, 2001 were up 42% from the $.85 million, or $.14 per diluted share for the quarter ended March 31, 2000. Highlights of the recent quarter include: -- Record net interest income of $5.0 million, up 8% over last year. -- Strong growth in service fees contributing to a 33% increase in non-interest income to $.8 million. -- Improved efficiency from planned job reductions resulted in a 1.5% reduction in non-interest expense to $3.7 million -- ROE increased to 11.47% and ROA improved to .67% "The pace of Cascade Bank's transition to a full service community bank is accelerating," said Chairman Frank McCord McCord is the placename for several places in the United States:
"I am confident we have the talent, management focus and discipline to transform Cascade Bank into a high performing community bank," Nelson said. "Since I joined Cascade in mid February February: see month. , we have moved swiftly swift adj. swift·er, swift·est 1. Moving or capable of moving with great speed; fast. See Synonyms at fast1. 2. to restructure the bank to improve service, increase efficiency and grow our customer base." Nine Months Ended March 31, 2001 Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: earnings for the nine months ended March 31, 2001 were $3.30 million or $0.56 per diluted share compared to $2.84 million or $0.48 per diluted share in the prior year. These increases represent a 16% growth in earnings and a 17% increase in earnings per share. Net interest income for the nine months ended March 31, 2001 was $14.4 million, a 3% increase over the previous period ended March 31, 2000. Non-interest income increased by 19% to $1.9 million for the nine months ended March 31, 2001 as a result of increased customer service fees and gain on the sale of securities. Non-interest expense declined 3% for the nine month period ended March 31, 2001 through cost savings associated with the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of mortgage banking operations. These cost savings were partially offset by non-recurring expenses associated with management transition of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $250 thousand expensed during the quarter ended March 31, 2001. Credit Quality Cascade's non-performing assets grew during the nine month period ended March 31, 2001, primarily due to the placement of $1.6 million of single family construction loans on non-accrual status. These loans to a self-help Redressing or preventing wrongs by one's own action Without Recourse to legal proceedings. Self-help is a term in the law that describes corrective or preventive measures taken by a private citizen. housing project have been restructured and will be converted to permanent, performing loans during the fourth quarter. Although Cascade's loan loss experience remains good, the provision for loan losses was increased by $80,000 to $290 thousand during the March 2001 quarter. As Cascade's loan portfolio transitions to a higher concentration of business loans the loan loss reserve is expected to increase to reflect the risk inherent in the portfolio. As of March 31, 2001 the allowance for loan losses was .98% of total loans compared to .91% a year earlier. Balance Sheet and Capital Management Consolidated assets increased 10.8 percent to $715 million at March 31, 2001 from $645 million at March 31, 2000. Net loans increased 5 percent to $561 million at March 31, 2001 from $534 million at March 31, 2000. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. at March 31, 2001 was $43.0 million, up from $36.7 million at March 31, 2000. The capital ratios of Cascade Bank continue to exceed regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. for classification as "well-capitalized", the highest regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. standard. Chartered in 1916, Cascade Bank is the oldest financial institution headquartered in Snohomish Snohomish can refer to:
Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. rating for serving the credit needs of the local community. Cascade Bank operates fourteen full service offices, located in Everett, Lynnwood Lynnwood, city (1990 pop. 28,695), Snohomish co., W central Wash., a residential and industrial suburb of Seattle; inc. 1959. Aerospace parts, communications and electrical equipment, electronic components, precious metal jewelry, and scales and balances are among , Marysville Marysville is the name of several places. Locations Australia
Mount Vernon, NE Va., overlooking the Potomac River near Alexandria, S of Washington, D.C.; home of George Washington from 1747 until his death in 1799. , Smokey Point, Issaquah, Clearview Clearview may refer to:
John Stevens, 1749–1838, b. New York City, was graduated from King's College (now Columbia Univ.) in 1768. and Bellevue Bellevue (bĕl`vy  ).1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855. . In May 2001 the bank will open a new branch in the Crossroads area of Bellevue.
CASCADE FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in thousands except per share amounts)
STATEMENT OF OPERATIONS
Three Months Ended Nine Months Ended
March 31, March 31,
2001 2000 2001 2000
---- ---- ---- ----
(Unaudited) (Unaudited)
Interest
income $ 14,319 12,386 42,597 35,456
Interest
expense 9,277 7,719 28,196 21,433
-------- -------- -------- --------
Total net
interest
income 5,042 4,667 14,401 14,023
Provision for
loan losses 290 210 710 560
-------- -------- -------- --------
Net interest
income after
provision
for losses 4,752 4,457 13,691 13,463
Non-interest
income
Gain on
sale of
loans 89 87 197 359
Gain on
sale of
securities 79 -- 155 --
Service fees 533 464 1,388 1,103
Other 91 45 191 150
-------- -------- -------- --------
Total non-
interest
income 792 596 1,931 1,612
Non-interest
expense
Salary and
employee
benefits 2,089 2,076 5,711 5,907
Other non-
interest
expenses 1,633 1,699 4,908 4,877
-------- -------- -------- --------
Total non-
interest
expense 3,722 3,775 10,619 10,784
Income before
Federal
income taxes 1,822 1,278 5,003 4,291
Federal
income taxes 623 433 1,705 1,456
-------- -------- -------- --------
Net earnings $ 1,199 845 3,298 2,835
======== ======== ======== ========
EARNINGS PER SHARE INFORMATION
Earnings per
share, basic $ 0.22 0.15 0.60 0.52
Earnings per
share,
diluted 0.20 0.14 0.56 0.48
Weighted
average number
of shares
outstanding:
basic 5,518,431 5,479,406 5,516,392 5,472,582
diluted 5,892,038 5,952,367 5,846,623 5,953,597
PERFORMANCE MEASURES
Return on
equity 11.47% 9.33% 11.13% 10.68%
Return on
average
assets 0.67% 0.54% 0.62% 0.62%
Efficiency
ratio 63.79% 73.32% 65.02% 71.54%
Net interest
margin 2.88% 3.05% 2.80% 3.19%
BALANCE SHEET March 31,2001 June 30, 2000 March 31,2000
------------- ------------- -------------
(Unaudited) (Unaudited) (Unaudited)
Cash and due
from banks 7,926 13,277 12,060
Interest
bearing
deposits 7,466 83 225
Securities
held to
maturity 6,726 10,851 8,095
Securities
available
for sale 114,127 93,444 72,654
Loans, net 560,958 539,972 534,147
Premises and
equipment 9,052 9,132 9,274
Other assets 9,040 8,940 8,880
Deferred
Federal
income taxes -- 477 --
--------- --------- ---------
Total assets $ 715,295 676,176 645,335
========= ========= =========
Deposits 392,269 398,507 428,391
FHLB advances 227,551 215,656 155,372
Securities
sold under
agreement
to repurchase 33,161 5,787 6,917
Advance
payments from
borrowers for
taxes and
insurance 2,683 1,960 1,470
Accrued
expenses and
other
liabilites 5,734 7,010 5,954
Deferred
Federal
income taxes 885 -- 538
--------- --------- ---------
Total liabilities 662,283 628,920 598,642
--------- --------- ---------
Trust
preferred
securities 10,000 10,000 10,000
Stockholders'
equity
Common
stock 56 55 55
Additional
paid-in
capital 5,326 5,038 5,034
Treasury
Stock (584) -- --
Retained
earnings 38,157 34,862 33,983
Accumulated
comprehensive
gain/(loss) 57 (2,699) (2,379)
--------- --------- ---------
Total
stockholders'
equity 43,012 37,256 36,693
--------- --------- ---------
Total
Liabilities
and equity $ 715,295 676,176 645,335
========= ========= =========
Book value
per common
share $ 7.79 6.79 6.70
ASSET QUALITY
Non-performing
assets/total
assets 0.58% 0.16% 0.26%
Allowance for
loan losses/
non-performing
loans 185% 873% 671%
Allowance for
loan losses/
total loans 0.98% 0.92% 0.91%
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