|
x
|
ANNUAL REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Oregon
|
93-1034484
|
(State
of Incorporation)
|
(IRS
Employer Identification #)
|
1100
N.W. Wall Street, Bend, Oregon
|
97701
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Common
Stock, no par value
|
The
NASDAQ Stock Market, LLC
|
(Title
of Class)
|
(Name
of Exchange on Which Listed)
|
|
·
|
An
increase of $21.0 million in the provision for loan losses and the
allowance for loan losses and an increase of $749 thousand in other real
estate owned (OREO) expenses and the valuation allowance for OREO at
December 31, 2009;
|
|
·
|
The
Company’s net loss after tax for the year ended December 31, 2009
increased from $93.1 million to $114.8
million;
|
|
·
|
Earnings
per share for the year, previously reported to be a loss of $3.32,
increased to a loss of $4.10;
|
|
·
|
The
loan loss provision increased from $113.0 million to $134.0
million;
|
|
·
|
The
allowance for loan losses increased to $58.6 million from the previously
reported $37.6 million; and
|
|
·
|
Stockholders’
equity at December 31, 2009 decreased to $23.3 million compared to the
previously reported $45.1 million.
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Page
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|||
PART I
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|||
Item
1.
|
Business
|
4
|
|
Item
1A.
|
Risk
Factors
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19
|
|
Item
1B.
|
Unresolved
Staff Comments
|
30
|
|
Item
2.
|
Properties
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30
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|
Item
3.
|
Legal
Proceedings
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30
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|
PART II
|
|||
Item
5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
31
|
|
Item
6.
|
Selected
Financial Data
|
34
|
|
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
37
|
|
Item
7A.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
62
|
|
Item
8.
|
Financial
Statements and Supplementary Data
|
65
|
|
Item
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
116
|
|
Item
9A.
|
Controls
and Procedures
|
116
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|
Item
9B.
|
Other
Information
|
116
|
|
PART III
|
|||
Item
10.
|
Directors,
Executive Officers and Corporate Governance
|
119
|
|
Item
11.
|
Executive
Compensation
|
119
|
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters
|
119
|
|
Item
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
119
|
|
Item
14.
|
Principal
Accountant Fees and Services
|
119
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|
PART IV
|
|||
Item
15.
|
Exhibits
and Financial Statement Schedules
|
120
|
|
Signatures
|
122
|
|
1.
|
Strive
to execute a substantial capital raise as soon as
possible
|
|
2.
|
Proactively
work to manage credit quality risk and minimize credit and loan quality
related costs
|
|
3.
|
Continue
to reduce loan balances outstanding to mitigate credit risk and conserve
capital and liquidity
|
|
4.
|
Focus
on retention and expansion of core
deposits
|
|
5.
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Maintain
ample liquidity reserves
|
|
6.
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Maximize
revenue sources within the context of the
plan
|
|
7.
|
Continue
to reduce controllable non-interest
expense
|
|
8.
|
Retain
high performing human resources
|
Officer’s
Name
|
Age
|
Position
|
||
Patricia
Moss
|
56
|
President
and CEO of Cascade Bancorp since 1998.
|
||
CEO
of Bank of the Cascades since 1998.
|
||||
Michael
Delvin
|
61
|
Executive
Vice President and Chief Operating Officer of Cascade Bancorp since 1998
and President and Chief Operating Officer of Bank of the Cascades since
2004.
|
||
Gregory
Newton
|
58
|
Executive
Vice President, Chief Financial Officer and Secretary of Cascade Bancorp
and Bank of the Cascades since 2002.
|
||
Peggy Biss
|
52
|
Executive
Vice President, Chief Human Resources Officer of Cascade Bancorp and Bank
of the Cascades since 2002.
|
||
Michael
Allison
|
53
|
Executive
Vice President and Chief Credit Officer of Cascade Bancorp and Bank of the
Cascades since
2009.
|
|
•
|
Core Capital (Tier 1).
Tier 1 capital includes common equity, retained
earnings, qualifying non-cumulative perpetual preferred stock, a limited
amount of qualifying cumulative perpetual stock at the holding company
level, minority interests in equity accounts of consolidated subsidiaries,
qualifying trust preferred securities, less goodwill, most intangible
assets and certain other assets.
|
|
•
|
Supplementary Capital
(Tier 2). Tier 2 capital includes, among
other things, perpetual preferred stock and trust preferred securities not
meeting the Tier 1 definition, qualifying mandatory convertible debt
securities, qualifying subordinated debt, and allowances for possible loan
and lease losses, subject to
limitations.
|
|
•
|
Market Risk Capital
(Tier 3). Tier 3 capital includes qualifying
unsecured subordinated debt.
|
ITEM
5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
SECURITIES
|
Quarter Ended
|
High
|
Low
|
Dividend per share
|
|||||||||
2009
|
||||||||||||
December
31
|
$ | 1.23 | $ | 0.68 | N/A | |||||||
September
30
|
$ | 2.39 | $ | 1.05 | N/A | |||||||
June
30
|
$ | 2.84 | $ | 1.26 | N/A | |||||||
March
31
|
$ | 7.25 | $ | 0.61 | N/A | |||||||
2008
|
||||||||||||
December
31
|
$ | 10.00 | $ | 5.07 | $ | 0.01 | ||||||
September
30
|
$ | 18.50 | $ | 6.26 | $ | 0.01 | ||||||
June
30
|
$ | 10.35 | $ | 7.43 | $ | 0.10 | ||||||
March
31
|
$ | 14.48 | $ | 9.01 | $ | 0.10 |
Plan Category
|
# of securities to be
issued on exercise of
outstanding options
(a)
|
Weighted average
exercise price of
outstanding options
(b)
|
# of securities
remaining available
for future issuance
under plan (excluding
securities in colum
(a)(c)
|
|||||||||
Equity
compensation plans approved by security holders
|
990,618 | $ | 12.18 | 1,353,217 | ||||||||
Equity
compensation plans not approved by security holders
|
None
|
N/A | N/A | |||||||||
Total
|
990,618 | $ | 12.18 | 1,353,217 |
Period Ending
|
||||||||||||||||||||||||
Index
|
12/31/04
|
12/31/05
|
12/31/06
|
12/31/07
|
12/31/08
|
12/31/09
|
||||||||||||||||||
Cascade
Bancorp
|
100.00 | 115.63 | 197.34 | 90.08 | 44.60 | 4.49 | ||||||||||||||||||
NASDAQ
Composite
|
100.00 | 101.37 | 111.03 | 121.92 | 72.49 | 104.31 | ||||||||||||||||||
SNL
Bank NASDAQ
|
100.00 | 96.95 | 108.85 | 85.45 | 62.06 | 50.34 | ||||||||||||||||||
Cascade
Bancorp 2009 Peer Group*
|
100.00 | 112.11 | 141.82 | 100.91 | 45.33 | 31.19 |
(In
thousands, except per share data and ratios; unaudited)
|
Years ended December 31,
|
|||||||||||||||||||
Balance
Sheet Data (at period end)
|
2009
|
2008
|
2007
|
2006
|
2005
|
|||||||||||||||
(Restated)
|
||||||||||||||||||||
Investment
securities
|
$ | 135,763 | $ | 109,691 | $ | 87,015 | $ | 106,923 | $ | 59,286 | ||||||||||
Loans,
gross
|
1,547,676 | 1,956,184 | 2,041,478 | 1,887,263 | 1,049,704 | |||||||||||||||
Reserve
for loan losses
|
58,586 | 47,166 | 33,875 | 23,585 | 14,688 | |||||||||||||||
Loans,
net
|
1,489,090 | 1,909,018 | 2,007,603 | 1,863,678 | 1,035,016 | |||||||||||||||
Total
assets
|
2,172,128 | 2,278,307 | 2,394,492 | 2,249,314 | 1,269,671 | |||||||||||||||
Total
deposits
|
1,815,348 | 1,794,611 | 1,667,138 | 1,661,616 | 1,065,379 | |||||||||||||||
Non-interest
bearing deposits
|
394,583 | 364,146 | 435,503 | 509,920 | 430,463 | |||||||||||||||
Total
common shareholders' equity (book) (1)
|
23,318 | 135,239 | 275,286 | 261,076 | 104,376 | |||||||||||||||
Tangible
common shareholders' equity (tangible) (2)
|
16,930 | 127,318 | 160,737 | 144,947 | 97,653 | |||||||||||||||
Income
Statement Data
|
||||||||||||||||||||
Interest
income
|
$ | 106,811 | $ | 137,772 | $ | 171,228 | $ | 138,597 | $ | 72,837 | ||||||||||
Interest
expense
|
34,135 | 42,371 | 62,724 | 40,321 | 13,285 | |||||||||||||||
Net
interest income
|
72,676 | 95,401 | 108,504 | 98,276 | 59,552 | |||||||||||||||
Loan
loss provision
|
134,000 | 99,593 | 19,400 | 6,000 | 3,050 | |||||||||||||||
Net
interest income (loss) after loan loss provision
|
(61,324 | ) | (4,192 | ) | 89,104 | 92,276 | 56,502 | |||||||||||||
Noninterest
income
|
21,626 | 19,991 | 21,225 | 18,145 | 13,069 | |||||||||||||||
Noninterest
expense (3)
|
94,716 | 173,671 | 62,594 | 52,953 | 34,201 | |||||||||||||||
Income
(loss) before income taxes
|
(134,414 | ) | (157,872 | ) | 47,735 | 57,468 | 35,370 | |||||||||||||
Provision
(credit) for income taxes
|
(19,585 | ) | (23,306 | ) | 17,756 | 21,791 | 12,934 | |||||||||||||
Net
income (loss)
|
(114,829 | ) | $ | (134,566 | ) | $ | 29,979 | $ | 35,677 | $ | 22,436 | |||||||||
Share
Data (1)
|
||||||||||||||||||||
Basic
earnings (loss) per common share
|
$ | (4.10 | ) | $ | (4.82 | ) | $ | 1.06 | $ | 1.37 | $ | 1.06 | ||||||||
Diluted
earnings (loss) per common share
|
$ | (4.10 | ) | $ | (4.82 | ) | $ | 1.05 | $ | 1.34 | $ | 1.03 | ||||||||
Book
value per common share
|
$ | 0.83 | $ | 4.81 | $ | 9.82 | $ | 9.22 | $ | 4.93 | ||||||||||
Tangible
value per common share
|
$ | 0.60 | $ | 4.53 | $ | 5.73 | $ | 5.11 | $ | 4.61 | ||||||||||
Cash
dividends paid per common share
|
$ | 0.00 | $ | 0.22 | $ | 0.37 | $ | 0.31 | $ | 0.26 | ||||||||||
Ratio
of dividends declared to net income
|
0.00 | % | -4.56 | % | 34.86 | % | 22.65 | % | 24.79 | % | ||||||||||
Basic
Average shares outstanding
|
28,001 | 27,936 | 28,243 | 26,062 | 21,070 | |||||||||||||||
Fully
Diluted average shares outstanding
|
28,001 | 27,936 | 28,577 | 26,664 | 21,780 | |||||||||||||||
Key
Ratios
|
||||||||||||||||||||
Return
on average total shareholders' equity (book)
|
-102.88 | % | -47.90 | % | 10.92 | % | 17.48 | % | 24.04 | % | ||||||||||
Return
on average total shareholders' equity (tangible)
|
-109.94 | % | -80.51 | % | 18.83 | % | 29.81 | % | 25.93 | % | ||||||||||
Return
on average total assets
|
-5.01 | % | -5.58 | % | 1.28 | % | 1.86 | % | 1.97 | % | ||||||||||
Pre-tax
pre provision return on average assets
|
-1.49 | % | 1.94 | % | 2.87 | % | 3.31 | % | 3.37 | % | ||||||||||
Net
interest spread
|
3.11 | % | 3.90 | % | 4.20 | % | 4.65 | % | 4.85 | % | ||||||||||
Net
interest margin
|
3.43 | % | 4.44 | % | 5.21 | % | 5.73 | % | 5.67 | % | ||||||||||
Total
revenue (net int inc + non int inc)
|
$ | 94,302 | $ | 115,153 | $ | 129,644 | $ | 116,431 | $ | 72,621 | ||||||||||
Efficiency
ratio (3)
|
100.44 | % | 150.61 | % | 48.22 | % | 45.49 | % | 47.10 | % |
(In
thousands, except per share data and ratios; unaudited)
|
Years ended December 31,
|
|||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
|
(Restated)
|
|||||||||||||||||||
Credit
Quality Ratios
|
||||||||||||||||||||
Reserve
for credit losses
|
$ | 59,290 | $ | 48,205 | $ | 37,038 | $ | 26,798 | $ | 14,688 | ||||||||||
Reserve
to ending total loans
|
3.83 | % | 2.46 | % | 1.81 | % | 1.42 | % | 1.40 | % | ||||||||||
Non-performing
assets (4)
|
$ | 160,970 | $ | 173,200 | $ | 55,681 | $ | 3,005 | $ | 40 | ||||||||||
Non-performing
assets to total gross loans and OREO
|
10.21 | % | 7.94 | % | 2.71 | % | 0.16 | % | 0.00 | % | ||||||||||
Non-performing
assets to total assets
|
7.41 | % | 7.00 | % | 2.33 | % | 0.13 | % | 0.00 | % | ||||||||||
Delinquent
loans >30 days
|
$ | 10,085 | $ | 6,249 | $ | 9,622 | $ | 3,397 | $ | 205 | ||||||||||
Delinquent
>30 days to total loans
|
0.65 | % | 0.33 | % | 0.47 | % | 0.18 | % | 0.02 | % | ||||||||||
Net
Charge off's (NCOs)
|
$ | 122,580 | $ | 86,302 | $ | 9,110 | $ | 1,282 | $ | 773 | ||||||||||
Net
loan charge-offs (annualized)
|
6.81 | % | 4.20 | % | 0.46 | % | 0.08 | % | 0.08 | % | ||||||||||
Provision
for loan losses to NCOs
|
109 | % | 115 | % | 213 | % | 468 | % | 395 | % | ||||||||||
Mortgage
Activity
|
||||||||||||||||||||
Mortgage
Originations
|
$ | 177,206 | $ | 121,663 | $ | 170,095 | $ | 176,558 | $ | 158,775 | ||||||||||
Total
Servicing Portfolio (sold loans)
|
$ | 542,905 | $ | 512,163 | $ | 493,969 | $ | 494,882 | $ | 498,668 | ||||||||||
Capitalized
Mortgage Servicing Rights (MSR's)
|
$ | 3,947 | $ | 3,605 | $ | 3,756 | $ | 4,096 | $ | 4,439 | ||||||||||
Capital
Ratios
|
||||||||||||||||||||
Bancorp
|
||||||||||||||||||||
Shareholders'
equity to ending assets
|
1.07 | % | 5.94 | % | 11.50 | % | 11.61 | % | 8.22 | % | ||||||||||
Leverage
ratio (4)
|
1.11 | % | 8.19 | % | 9.90 | % | 9.82 | % | 9.30 | % | ||||||||||
Tier
1 risk-based capital (4)
|
1.48 | % | 8.94 | % | 10.00 | % | 9.99 | % | 9.83 | % | ||||||||||
Total
risk-based capital (4)
|
2.95 | % | 10.22 | % | 11.27 | % | 11.26 | % | 10.72 | % | ||||||||||
Bank
|
||||||||||||||||||||
Shareholders'
equity to ending assets
|
4.18 | % | 8.80 | % | 14.11 | % | 14.42 | % | 9.60 | % | ||||||||||
Leverage
ratio (4)
|
3.75 | % | 8.09 | % | 9.74 | % | 9.67 | % | 9.17 | % | ||||||||||
Tier
1 risk-based capital (4)
|
4.97 | % | 8.83 | % | 9.82 | % | 9.82 | % | 9.69 | % | ||||||||||
Total
risk-based capital (4)
|
6.25 | % | 10.09 | % | 11.08 | % | 11.07 | % | 10.93 | % |
2009
|
||||||||||||||||
Fourth
Quarter
|
Third
Quarter
|
Second
Quarter
|
First
Quarter
|
|||||||||||||
(Restated)
|
||||||||||||||||
Interest
income
|
$ | 24,722 | $ | 26,091 | $ | 27,663 | $ | 28,335 | ||||||||
Interest
expense
|
7,895 | 8,817 | 8,812 | 8,611 | ||||||||||||
Net
interest income
|
16,827 | 17,274 | 18,851 | 19,724 | ||||||||||||
Loan
loss provision
|
49,000 | 22,000 | 48,000 | 15,000 | ||||||||||||
Net
interest income (loss) after loan loss provision
|
(32,173 | ) | (4,726 | ) | (29,149 | ) | 4,724 | |||||||||
Noninterest
income
|
3,536 | 8,077 | 4,956 | 5,057 | ||||||||||||
Noninterest
expenses
|
29,782 | 25,739 | 22,625 | 16,570 | ||||||||||||
Loss
before income taxes
|
(58,419 | ) | (22,388 | ) | (46,818 | ) | (6,789 | ) | ||||||||
Provision
(credit) for income taxes
|
11,782 | (9,744 | ) | (18,750 | ) | (2,873 | ) | |||||||||
Net
loss
|
$ | (70,201 | ) | $ | (12,644 | ) | $ | (28,068 | ) | $ | (3,916 | ) | ||||
Basic
net loss per common share
|
$ | (2.50 | ) | $ | (0.45 | ) | $ | (1.00 | ) | $ | (0.14 | ) | ||||
Diluted
net loss per common share
|
$ | (2.50 | ) | $ | (0.45 | ) | $ | (1.00 | ) | $ | (0.14 | ) | ||||
2008
|
||||||||||||||||
Fourth
Quarter
|
Third
Quarter
|
Second
Quarter
|
First Quarter
|
|||||||||||||
Interest
income
|
$ | 31,260 | $ | 34,111 | $ | 34,260 | $ | 38,141 | ||||||||
Interest
expense
|
9,130 | 10,146 | 10,014 | 13,081 | ||||||||||||
Net
interest income
|
22,130 | 23,965 | 24,246 | 25,060 | ||||||||||||
Loan
loss provision
|
61,339 |
(1)
|
15,390 | 18,364 | 4,500 | |||||||||||
Net
interest income (loss) after loan loss provision
|
(39,209 | ) | 8,575 | 5,882 | 20,560 | |||||||||||
Noninterest
income
|
3,951 | 5,530 | 5,008 | 5,502 | ||||||||||||
Noninterest
expenses
|
125,724 |
(2)
|
13,809 | 16,763 | 17,375 | |||||||||||
Income
(loss) before income taxes
|
(160,982 | ) | 296 | (5,873 | ) | 8,687 | ||||||||||
Provision
(credit) for income taxes
|
(23,422 | ) | (51 | ) | (2,480 | ) | 2,647 | |||||||||
Net
income (loss)
|
$ | (137,560 | ) | $ | 347 | $ | (3,393 | ) | $ | 6,040 | ||||||
Basic
net income (loss) per common share
|
$ | (4.92 | ) | $ | 0.01 | $ | (0.12 | ) | $ | 0.22 | ||||||
Diluted
net income (loss) per common share
|
$ | (4.92 | ) | $ | 0.01 | $ | (0.12 | ) | $ | 0.22 |
(dollars in thousands)
|
Year ended
|
Year ended
|
Year ended
|
|||||||||||||||||||||||||||||||||
December 31, 2009
|
December 31, 2008
|
December 31, 2007
|
||||||||||||||||||||||||||||||||||
Interest
|
Average
|
Interest
|
Average
|
Interest
|
Average
|
|||||||||||||||||||||||||||||||
Average
|
Income/
|
Yield or
|
Average
|
Income/
|
Yield or
|
Average
|
Income/
|
Yield or
|
||||||||||||||||||||||||||||
Balance
|
Expense
|
Rates
|
Balance
|
Expense
|
Rates
|
Balance
|
Expense
|
Rates
|
||||||||||||||||||||||||||||
|
(Restated)
|
|||||||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||
Taxable
securities
|
$ | 101,033 | $ | 5,085 | 5.03 | % | $ | 85,034 | $ | 4,462 | 5.25 | % | $ | 93,793 | $ | 5,259 | 5.61 | % | ||||||||||||||||||
Non-taxable
securities (1)
|
3,643 | 186 | 5.11 | % | 5,211 | 255 | 4.89 | % | 7,952 | 283 | 3.56 | % | ||||||||||||||||||||||||
Interest
bearing balances due from FRB and FHLB
|
209,451 | 486 | 0.23 | % | 13 | - | 0.00 | % | 3,735 | 195 | 5.22 | % | ||||||||||||||||||||||||
Federal
funds sold
|
7,454 | 17 | 0.23 | % | 2,026 | 31 | 1.53 | % | 3,910 | 187 | 4.78 | % | ||||||||||||||||||||||||
Federal
Home Loan Bank stock
|
10,472 | - | 0.00 | % | 11,458 | 111 | 0.97 | % | 6,991 | 42 | 0.60 | % | ||||||||||||||||||||||||
Loans
(1)(2)(3)(4)
|
1,798,723 | 101,507 | 5.64 | % | 2,054,199 | 133,346 | 6.49 | % | 1,974,435 | 165,690 | 8.39 | % | ||||||||||||||||||||||||
Total
earning assets
|
2,130,776 | 107,281 | 5.03 | % | 2,157,941 | 138,205 | 6.40 | % | 2,090,816 | 171,656 | 8.21 | % | ||||||||||||||||||||||||
Reserve
for loan losses
|
(57,268 | ) | (38,827 | ) | (24,498 | ) | ||||||||||||||||||||||||||||||
Cash
and due from banks
|
37,836 | 48,341 | 55,427 | |||||||||||||||||||||||||||||||||
Premises
and equipment, net
|
38,805 | 37,273 | 38,307 | |||||||||||||||||||||||||||||||||
Other
Assets
|
145,440 | 207,094 | 178,682 | |||||||||||||||||||||||||||||||||
Total
assets
|
$ | 2,295,589 | $ | 2,411,822 | $ | 2,338,734 | ||||||||||||||||||||||||||||||
Liabilities and Stockholders'
Equity
|
||||||||||||||||||||||||||||||||||||
Int.
bearing demand deposits
|
$ | 735,667 | 7,267 | 0.99 | % | $ | 844,136 | 15,540 | 1.84 | % | $ | 889,069 | 30,727 | 3.46 | % | |||||||||||||||||||||
Savings
deposits
|
33,275 | 73 | 0.22 | % | 36,761 | 135 | 0.37 | % | 41,327 | 202 | 0.49 | % | ||||||||||||||||||||||||
Time
deposits
|
688,430 | 17,915 | 2.60 | % | 386,990 | 12,850 | 3.32 | % | 340,324 | 15,804 | 4.64 | % | ||||||||||||||||||||||||
Other
borrowings
|
312,301 | 8,880 | 2.84 | % | 434,112 | 13,846 | 3.19 | % | 294,854 | 15,991 | 5.42 | % | ||||||||||||||||||||||||
Total
interest bearing liabilities
|
1,769,673 | 34,135 | 1.93 | % | 1,701,999 | 42,371 | 2.49 | % | 1,565,574 | 62,724 | 4.01 | % | ||||||||||||||||||||||||
Demand
deposits
|
407,344 | 407,980 | 469,015 | |||||||||||||||||||||||||||||||||
Other
liabilities
|
8,659 | 20,904 | 29,590 | |||||||||||||||||||||||||||||||||
Total
liabilities
|
2,185,676 | 2,130,883 | 2,064,179 | |||||||||||||||||||||||||||||||||
Stockholders'
equity
|
109,913 | 280,939 | 274,555 | |||||||||||||||||||||||||||||||||
Total
liabilities & equity
|
$ | 2,295,589 | $ | 2,411,822 | $ | 2,338,734 | ||||||||||||||||||||||||||||||
Net
interest income
|
$ | 73,146 | $ | 95,834 | $ | 108,932 | ||||||||||||||||||||||||||||||
Net
interest spread
|
3.11 | % | 3.92 | % | 4.20 | % | ||||||||||||||||||||||||||||||
Net
interest income to earning assets
|
3.43 | % | 4.44 | % | 5.23 | % |
(1)
|
Tax-exempt
income has been adjusted to a tax-equivalent basis at a rate of
35%.
|
(2)
|
Average
non-accrual loans included in the computation of average loans for 2009
was $156.9 million, $86.3 million for 2008 and $5.8 million in
2007.
|
(3)
|
Loan
related fees recognized during the period and included in the yield
calculation were $3.2 million in 2009, $4.6 million in 2008 and $5.8
million in 2007.
|
(4)
|
Includes
mortgage loans held for sale.
|
(dollars in thousands)
|
Year ended December 31,
|
|||||||||||||||||||||||
2009 over 2008
|
2008 over 2007
|
|||||||||||||||||||||||
Total
|
Amount of Change
|
Total
|
Amount of Change
|
|||||||||||||||||||||
Increase
|
Attributed to
|
Increase
|
Attributed to
|
|||||||||||||||||||||
(Decrease)
|
Volume
|
Rate
|
(Decrease)
|
Volume
|
Rate
|
|||||||||||||||||||
Interest
income:
|
||||||||||||||||||||||||
Interest
and fees on loans
|
$ | (31,839 | ) | $ | (16,584 | ) | $ | (15,255 | ) | $ | (32,344 | ) | $ | 6,694 | $ | (39,038 | ) | |||||||
Taxable
securities
|
627 | 840 | (213 | ) | (797 | ) | (491 | ) | (306 | ) | ||||||||||||||
Non-taxable
securities
|
(69 | ) | (77 | ) | 8 | (28 | ) | (98 | ) | 70 | ||||||||||||||
Interest
bearing balances due from FRB and FHLB
|
482 | 0 | 482 | (195 | ) | (194 | ) | (1 | ) | |||||||||||||||
Federal
Home Loan Bank stock
|
(111 | ) | (10 | ) | (101 | ) | 69 | 27 | 42 | |||||||||||||||
Federal
funds sold
|
(14 | ) | 83 | (97 | ) | (156 | ) | (90 | ) | (66 | ) | |||||||||||||
Total
interest income
|
(30,924 | ) | (15,748 | ) | (15,176 | ) | (33,451 | ) | 5,848 | (39,299 | ) | |||||||||||||
Interest
expense:
|
||||||||||||||||||||||||
Interest
on deposits:
|
||||||||||||||||||||||||
Interest
bearing demand
|
(8,273 | ) | (1,997 | ) | (6,276 | ) | (15,187 | ) | (1,553 | ) | (13,634 | ) | ||||||||||||
Savings
|
(62 | ) | (13 | ) | (49 | ) | (67 | ) | (22 | ) | (45 | ) | ||||||||||||
Time
|
5,065 | 10,009 | (4,944 | ) | (2,954 | ) | 2,167 | (5,121 | ) | |||||||||||||||
Other
borrowings
|
(4,966 | ) | (3,885 | ) | (1,081 | ) | (2,145 | ) | 7,552 | (9,697 | ) | |||||||||||||
Total
interest expense
|
(8,236 | ) | 4,114 | (12,350 | ) | (20,353 | ) | 8,144 | (28,497 | ) | ||||||||||||||
Net
interest income
|
$ | (22,688 | ) | $ | (19,862 | ) | $ | (2,826 | ) | $ | (13,098 | ) | $ | (2,296 | ) | $ | (10,802 | ) |
December 31,
|
||||||||||||
(dollars
in thousands)
|
2009
|
2008
|
2007
|
|||||||||
U.S.
Agency and non-agency mortgage-backed securities (MBS)
|
$ | 116,639 | $ | 93,534 | $ | 65,202 | ||||||
U.S.
Government and agency securities
|
7,481 | 8,726 | 10,497 | |||||||||
Obligations
of state and political subdivisions
|
3,606 | 3,741 | 6,917 | |||||||||
U.S.
Agency asset-backed securities
|
7,586 | 3,260 | 3,538 | |||||||||
Total
debt securities
|
135,312 | 109,261 | 86,154 | |||||||||
Mutual
fund
|
451 | 430 | 412 | |||||||||
Equity
securities
|
- | - | 449 | |||||||||
Total
investment securities
|
$ | 135,763 | $ | 109,691 | $ | 87,015 |
(dollars
in thousands)
|
Weighted
|
|||||||
Carrying
|
Average
|
|||||||
Type and maturity
|
Value
|
Yield (1)
|
||||||
U.S.
Agency and non-agency mortgage-backed securities
|
||||||||
Due
after 5 but within 10 years
|
$ | 875 | 5.19 | % | ||||
Due
after 10 years
|
115,764 | 4.49 | % | |||||
Total
U.S. Agency mortgage-backed securities
|
116,639 | 4.49 | % | |||||
U.S.
Government and Agency Securities
|
||||||||
Due
after 5 but within 10 years
|
7,481 | 2.25 | % | |||||
Total
U.S. Government and Agency Securities
|
7,481 | 2.25 | % | |||||
State
and Political Subdivisions (1)
|
||||||||
Due
within 1 year
|
200 | 3.25 | % | |||||
Due
after 1 but within 5 years
|
2,202 | 3.87 | % | |||||
Due
after 5 but within 10 years
|
1,204 | 4.04 | % | |||||
Total
State and Political Subdivisions
|
3,606 | 3.89 | % | |||||
U.S.
Agency asset-backed securities
|
||||||||
Due
within 1 year
|
1,336 | 5.24 | % | |||||
Due
after 1 but within 5 years
|
677 | 5.39 | % | |||||
Due
after 10 years
|
5,573 | 6.50 | % | |||||
Total
U.S. Agency asset-backed securities
|
7,586 | 6.18 | % | |||||
Total
debt securities
|
135,312 | 4.45 | % | |||||
Mutual
fund
|
451 | 4.57 | % | |||||
Total
Securities
|
$ | 135,763 | 4.45 | % |
(dollars in thousands)
|
2009
|
% of
gross
loans
|
2008
|
% of
gross
loans
|
2007
|
% of
gross
loans
|
2006
|
% of
gross
loans
|
2005
|
% of
gross
loans
|
||||||||||||||||||||||||||||||
(Restated)
|
||||||||||||||||||||||||||||||||||||||||
Commercial
|
$ | 420,155 | 27 | % | $ | 582,831 | 30 | % | $ | 606,408 | 30 | % | $ | 560,728 | 30 | % | $ | 320,619 | 31 | % | ||||||||||||||||||||
Real
Estate:
|
||||||||||||||||||||||||||||||||||||||||
Construction/lot:
|
308,346 | 20 | % | 517,721 | 26 | % | 686,829 | 34 | % | 588,251 | 31 | % | 220,230 | 21 | % | |||||||||||||||||||||||||
Mortgage
|
93,465 | 6 | % | 96,248 | 5 | % | 88,509 | 4 | % | 80,860 | 4 | % | 56,724 | 5 | % | |||||||||||||||||||||||||
Commercial
|
675,728 | 44 | % | 703,149 | 36 | % | 612,694 | 30 | % | 606,340 | 32 | % | 417,580 | 40 | % | |||||||||||||||||||||||||
Consumer
|
49,982 | 3 | % | 56,235 | 3 | % | 47,038 | 2 | % | 51,083 | 3 | % | 34,551 | 3 | % | |||||||||||||||||||||||||
Total
loans
|
1,547,676 | 100 | % | 1,956,184 | 100 | % | 2,041,478 | 100 | % | 1,887,262 | 100 | % | 1,049,704 | 100 | % | |||||||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||||||
Reserve
for loan losses
|
58,586 | 47,166 | 33,875 | 23,585 | 14,688 | |||||||||||||||||||||||||||||||||||
Total
loans, net
|
$ | 1,489,090 | $ | 1,909,018 | $ | 2,007,603 | $ | 1,863,677 | $ | 1,035,016 |
(dollars in thousands)
|
Central
Oregon
|
% of
gross
loans
|
Northwest
Oregon
|
% of
gross
loans
|
Southern
Oregon
|
% of
gross
loans
|
Idaho
|
% of
gross
loans
|
Total
|
% of
gross
loans
|
||||||||||||||||||||||||||||||
Commercial
|
$ | 146,640 | 26 | % | $ | 108,635 | 30 | % | $ | 42,811 | 20 | % | $ | 122,069 | 30 | % | $ | 420,155 | 27 | % | ||||||||||||||||||||
Real
Estate:
|
||||||||||||||||||||||||||||||||||||||||
Construction/lot
|
97,496 | 17 | % | 93,192 | 25 | % | 41,982 | 19 | % | 75,676 | 19 | % | 308,346 | 20 | % | |||||||||||||||||||||||||
Mortgage
|
39,018 | 7 | % | 8,874 | 2 | % | 8,318 | 4 | % | 37,255 | 9 | % | 93,465 | 6 | % | |||||||||||||||||||||||||
Commercial
|
255,286 | 46 | % | 151,683 | 41 | % | 118,476 | 55 | % | 150,283 | 38 | % | 675,728 | 44 | % | |||||||||||||||||||||||||
Consumer
|
23,119 | 4 | % | 5,853 | 2 | % | 3,915 | 2 | % | 17,095 | 4 | % | 49,982 | 3 | % | |||||||||||||||||||||||||
Total
loans
|
$ | 561,559 | 100 | % | $ | 368,237 | 100 | % | $ | 215,502 | 100 | % | $ | 402,378 | 100 | % | $ | 1,547,676 | 100 | % |
(dollars in thousands) Loan
Category
|
Due within
one year
|
Due after one
year, but within
five years
|
Due after five
years
|
Total
|
||||||||||||
Commercial
|
$ | 195,145 | $ | 174,265 | $ | 50,745 | $ | 420,155 | ||||||||
Real
Estate:
|
||||||||||||||||
Construction/Lot
|
225,224 | 57,273 | 25,849 | 308,346 | ||||||||||||
Mortgage
|
5,344 | 29,634 | 58,487 | 93,465 | ||||||||||||
Commercial
|
16,610 | 202,561 | 456,557 | 675,728 | ||||||||||||
Consumer
|
2,807 | 20,989 | 26,186 | 49,982 | ||||||||||||
$ | 445,130 | $ | 484,722 | $ | 617,824 | $ | 1,547,676 |
(dollars in thousands)
|
2009
|
% of
category
|
% of
Constr /
lot
portfolio
|
% of
gross
loans
|
2008
|
|||||||||||||||
Residential
Land Development:
|
||||||||||||||||||||
Raw
Land
|
$ | 35,258 | 37 | % | 11 | % | 2 | % | $ | 72,329 | ||||||||||
Land
Development
|
51,240 | 54 | % | 16 | % | 3 | % | 112,234 | ||||||||||||
Speculative
Lots
|
7,981 | 9 | % | 3 | % | 1 | % | 14,855 | ||||||||||||
$ | 94,479 | 100 | % | 30 | % | 6 | % | $ | 199,418 | |||||||||||
Geographic
distribution by region:
|
||||||||||||||||||||
Central
Oregon
|
$ | 48,176 | 51 | % | 15 | % | 3 | % | $ | 74,209 | ||||||||||
Northwest
Oregon
|
4,095 | 4 | % | 1 | % | 0 | % | 4,670 | ||||||||||||
Southern
Oregon
|
8,437 | 9 | % | 3 | % | 1 | % | 12,723 | ||||||||||||
Total
Oregon
|
60,708 | 64 | % | 19 | % | 4 | % | 91,602 | ||||||||||||
Idaho
|
33,771 | 36 | % | 11 | % | 2 | % | 107,816 | ||||||||||||
Grand
total
|
$ | 94,479 | 100 | % | 30 | % | 6 | % | $ | 199,418 |
|
(b)
|
Residential construction
category. This category is included in the
construction/lot portfolio balances above, and represents financing of
homeowner or builder construction of new residences and condominiums where
the obligor generally intends to own the home upon construction
(pre-sold), or builder construction of homes for resale (speculative
construction).
|
(dollars in thousands)
|
2009
|
% of
category
|
% of
Constr /
lot
portfolio
|
% of
gross
loans
|
2008
|
|||||||||||||||
Residential
Construction
|
||||||||||||||||||||
Pre
sold
|
$ | 10,115 | 21 | % | 3 | % | 0 | % | $ | 62,153 | ||||||||||
Lots
|
11,493 | 24 | % | 4 | % | 1 | % | 17,331 | ||||||||||||
Speculative
Construction
|
26,819 | 55 | % | 9 | % | 2 | % | 28,461 | ||||||||||||
$ | 48,427 | 100 | % | 16 | % | 3 | % | $ | 107,945 | |||||||||||
Geographic
distribution by region:
|
||||||||||||||||||||
Central
Oregon
|
$ | 24,304 | 50 | % | 8 | % | 2 | % | $ | 43,593 | ||||||||||
Northwest
Oregon
|
7,246 | 15 | % | 2 | % | 0 | % | 30,445 | ||||||||||||
Southern
Oregon
|
3,124 | 6 | % | 1 | % | 0 | % | 5,798 | ||||||||||||
Total
Oregon
|
34,674 | 72 | % | 11 | % | 2 | % | 79,836 | ||||||||||||
Idaho
|
13,753 | 28 | % | 4 | % | 1 | % | 28,109 | ||||||||||||
Grand
total
|
$ | 48,427 | 100 | % | 16 | % | 3 | % | $ | 107,945 |
(dollars
in thousands)
|
2009
|
% of
category
|
% of
Constr /
lot
portfolio
|
% of
gross
loans
|
2008
|
|||||||||||||||
Commercial
Construction:
|
||||||||||||||||||||
Pre
sold
|
$ | 29,080 | 18 | % | 9 | % | 2 | % | $ | 27,826 | ||||||||||
Lots
|
9,822 | 6 | % | 3 | % | 1 | % | 16,404 | ||||||||||||
Speculative
|
99,957 | 60 | % | 33 | % | 6 | % | 143,719 | ||||||||||||
Speculative
Lots
|
26,581 | 16 | % | 9 | % | 2 | % | 22,409 | ||||||||||||
$ | 165,440 | 100 | % | 54 | % | 11 | % | $ | 210,358 | |||||||||||
Geographic
distribution by region:
|
||||||||||||||||||||
Central
Oregon
|
$ | 24,674 | 15 | % | 8 | % | 2 | % | $ | 49,817 | ||||||||||
Northwest
Oregon
|
82,059 | 50 | % | 27 | % | 5 | % | 83,720 | ||||||||||||
Southern
Oregon
|
30,467 | 18 | % | 10 | % | 2 | % | 33,837 | ||||||||||||
Total
Oregon
|
137,200 | 83 | % | 45 | % | 9 | % | 167,374 | ||||||||||||
Idaho
|
28,240 | 17 | % | 9 | % | 2 | % | 42,984 | ||||||||||||
Grand
total
|
$ | 165,440 | 100 | % | 54 | % | 11 | % | $ | 210,358 |
Commercial
Real Estate:
|
2009
|
% of
total
CRE
|
% of
gross
loans
|
2008
|
||||||||||||
Owner
occupied
|
$ | 348,732 | 52 | % | 22 | % | $ | 358,232 | ||||||||
Non-owner
occupied
|
326,996 | 48 | % | 21 | % | 344,917 | ||||||||||
$ | 675,728 | 100 | % | 44 | % | $ | 703,149 |
Commercial Real Estate:
|
Central
Oregon
|
% of
total
CRE
loans
|
Northwest
Oregon
|
% of
total
CRE
loans
|
Southern
Oregon
|
% of
total
CRE
loans
|
Idaho
|
% of
total
CRE
loans
|
Total
|
|||||||||||||||||||||||||||
Owner
occupied
|
$ | 148,993 | 10 | % | $ | 42,290 | 3 | % | $ | 71,006 | 5 | % | $ | 86,443 | 6 | % | $ | 348,732 | ||||||||||||||||||
Non-owner
occupied
|
105,122 | 7 | % | 109,911 | 7 | % | 47,654 | 3 | % | 64,309 | 4 | % | $ | 326,996 | ||||||||||||||||||||||
Total
loans
|
$ | 254,115 | 17 | % | $ | 152,201 | 10 | % | $ | 118,660 | 8 | % | $ | 150,752 | 10 | % | $ | 675,728 |
2009
|
2008
|
|||||||||||||||||||||||
(dollars in thousands)
|
Reserve for
loan and
commitment
losses
|
Allocated
reserve as a
% of loan
category
|
Loan
category as
a % of total
loans
|
Reserve for
loan and
commitment
losses
|
Allocated
reserve as a
% of loan
category
|
Loan
category as
a % of total
loans
|
||||||||||||||||||
(Restated)
|
||||||||||||||||||||||||
Commercial
|
$ | 18,339 | 4.33 | % | 27.14 | % | $ | 11,614 | 1.99 | % | 29.79 | % | ||||||||||||
Real
Estate:
|
||||||||||||||||||||||||
Construction/lot
|
14,480 | 4.70 | % | 19.95 | % | 18,722 | 3.62 | % | 26.47 | % | ||||||||||||||
Mortgage
|
3,092 | 3.31 | % | 6.03 | % | 1,696 | 1.76 | % | 4.92 | % | ||||||||||||||
Commercial
|
10,662 | 1.60 | % | 43.58 | % | 7,064 | 1.00 | % | 35.95 | % | ||||||||||||||
Consumer
|
2,807 | 5.62 | % | 3.30 | % | 1,893 | 3.37 | % | 2.87 | % | ||||||||||||||
Committed/unfunded
|
423 | - | - | 735 | - | - | ||||||||||||||||||
Unallocated
|
9,487 | - | - | 6,481 | - | - | ||||||||||||||||||
Total
reserve for credit losses
|
$ | 59,290 | 3.83 | % | 100.00 | % | $ | 48,205 | 2.46 | % | 100.00 | % |
2007
|
2006
|
|||||||||||||||||||||||
Reserve for
loan and
commitment
losses
|
Allocated
reserve as a
% of loan
category
|
Loan
category as
a % of total
loans
|
Reserve for
loan and
commitment
losses
|
Allocated
reserve as a
% of loan
category
|
Loan
category as
a % of total
loans
|
|||||||||||||||||||
Commercial
|
$ | 10,388 | 1.71 | % | 29.70 | % | $ | 7,818 | 1.39 | % | 29.71 | % | ||||||||||||
Real
Estate:
|
||||||||||||||||||||||||
Construction/lot
|
13,433 | 1.96 | % | 33.64 | % | 6,328 | 1.08 | % | 31.17 | % | ||||||||||||||
Mortgage
|
1,521 | 1.72 | % | 4.34 | % | 1,112 | 1.38 | % | 4.28 | % | ||||||||||||||
Commercial
|
3,901 | 0.64 | % | 30.02 | % | 3,986 | 0.66 | % | 32.13 | % | ||||||||||||||
Consumer
|
1,684 | 3.58 | % | 2.30 | % | 2,050 | 4.01 | % | 2.71 | % | ||||||||||||||
Committed/unfunded
|
2,414 | - | - | 3,213 | - | - | ||||||||||||||||||
Unallocated
|
3,697 | - | - | 2,291 | - | - | ||||||||||||||||||
Total
reserve for credit losses
|
$ | 37,038 | 1.81 | % | 100.00 | % | $ | 26,798 | 1.42 | % | 100.00 | % |
2005
|
||||||||||||
Reserve for
loan and
commitment
losses
|
Allocated
reserve as a
% of loan
category
|
Loan
category as
a % of total
loans
|
||||||||||
Commercial
|
$ | 3,526 | 1.10 | % | 30.51 | % | ||||||
Real
Estate:
|
||||||||||||
Construction/lot
|
2,445 | 1.11 | % | 21.01 | % | |||||||
Mortgage
|
567 | 1.00 | % | 5.39 | % | |||||||
Commercial
|
821 | 0.68 | % | 39.81 | % | |||||||
Consumer
|
1,281 | 3.71 | % | 3.28 | % | |||||||
Committed/unfunded
|
2,753 | - | - | |||||||||
Unallocated
|
1,295 | - | - | |||||||||
Total
reserve for credit losses
|
$ | 12,688 | 1.40 | % | 100.00 | % |
(dollars in thousands)
|
Year ended December 31,
|
|||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
Loans
outstanding at end of period
|
$ | 1,547,676 | $ | 1,956,184 | $ | 2,041,478 | $ | 1,887,262 | $ | 1,049,705 | ||||||||||
Average
loans outstanding during the period
|
$ | 1,798,723 | $ | 2,054,199 | $ | 1,974,435 | $ | 1,590,315 | $ | 962,514 | ||||||||||
Reserve
for loan losses, balance beginning of period
|
$ | 47,166 | $ | 33,875 | $ | 23,585 | $ | 14,688 | $ | 12,412 | ||||||||||
Recoveries:
|
||||||||||||||||||||
Commercial
|
1,033 | 800 | 378 | 122 | 241 | |||||||||||||||
Real
Estate:
|
||||||||||||||||||||
Construction
|
1,110 | 581 | 12 | - | - | |||||||||||||||
Mortgage
|
113 | 50 | 288 | 4 | 25 | |||||||||||||||
Commercial
|
949 | 62 | - | 37 | - | |||||||||||||||
Consumer
|
540 | 487 | 612 | 527 | 227 | |||||||||||||||
3,745 | 1,980 | 1,290 | 690 | 493 | ||||||||||||||||
Loans
charged off:
|
||||||||||||||||||||
Commercial
|
(18,403 | ) | (10,411 | ) | (4,634 | ) | (529 | ) | (405 | ) | ||||||||||
Real
Estate:
|
||||||||||||||||||||
Construction
|
(92,449 | ) | (71,833 | ) | (2,986 | ) | - | - | ||||||||||||
Mortgage
|
(2,560 | ) | (650 | ) | (941 | ) | (45 | ) | - | |||||||||||
Commercial
|
(7,875 | ) | (2,139 | ) | - | (7 | ) | - | ||||||||||||
Consumer
|
(5,038 | ) | (3,249 | ) | (1,839 | ) | (1,391 | ) | (861 | ) | ||||||||||
(126,325 | ) | (88,282 | ) | (10,400 | ) | (1,972 | ) | (1,266 | ) | |||||||||||
Net
loans charged-off
|
(122,580 | ) | (86,302 | ) | (9,110 | ) | (1,282 | ) | (773 | ) | ||||||||||
Provision
charged to operations
|
134,000 | 99,593 | 19,400 | 6,000 | 3,050 | |||||||||||||||
Reserve
for unfunded commitments
|
- | - | - | - | - | |||||||||||||||
reclassified
to other liabilities
|
- | - | - | (3,213 | ) | - | ||||||||||||||
Reserves
acquired from F&M
|
- | - | - | 7,392 | - | |||||||||||||||
Reserve
balance, end of period
|
$ | 58,586 | $ | 47,166 | $ | 33,875 | $ | 23,585 | $ | 14,688 | ||||||||||
Ratio
of net loans charged-off to average loans outstanding
|
6.81 | % | 4.20 | % | .46 | % | .08 | % | .08 | % | ||||||||||
Ratio
of reserve for loan losses to loans at end of period
|
3.79 | % | 2.41 | % | 1.66 | % | 1.25 | % | 1.40 | % |
(dollars
in thousands)
|
December 31,
|
|||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(Restated)
|
||||||||||||||||||||
Loans
on nonaccrual status
|
$ | 132,110 | $ | 120,468 | $ | 45,865 | $ | 2,679 | $ | 40 | ||||||||||
Loans
past due 90 days or more but not on nonaccrual status
|
- | 5 | 51 | - | - | |||||||||||||||
OREO
|
28,860 | 52,727 | 9,765 | 326 | - | |||||||||||||||
Total
non-performing assets
|
$ | 160,970 | $ | 173,200 | $ | 55,681 | $ | 3,005 | $ | 40 | ||||||||||
Selected
ratios:
|
||||||||||||||||||||
NPLs
to total gross loans
|
8.54 | % | 6.16 | % | 2.25 | % | 0.14 | % | 0.00 | % | ||||||||||
NPAs
to total gross loans and OREO
|
10.21 | % | 8.85 | % | 2.73 | % | 0.16 | % | 0.00 | % | ||||||||||
NPAs
to total assets
|
7.41 | % | 7.60 | % | 2.33 | % | 0.13 | % | 0.00 | % |
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(Restated)
|
||||||||||||||||||||
Commercial
|
$ | 28,964 | $ | 16,877 | $ | 8,306 | $ | 645 | $ | 40 | ||||||||||
Real
Estate:
|
||||||||||||||||||||
Construction/lot
|
106,752 | 128,053 | 42,251 | 1,958 | - | |||||||||||||||
Commercial
|
24,749 | 25,799 | 4,135 | 389 | - | |||||||||||||||
Consumer/other
|
505 | 2,471 | 989 | 13 | - | |||||||||||||||
Total
non-performing assets
|
$ | 160,970 | $ | 173,200 | $ | 55,681 | $ | 3,005 | $ | 40 |
(dollars in thousands)
|
Years ended December 31,
|
|||||||||||||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||
Deposit Liabilities
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Rate
|
Rate
|
Rate
|
||||||||||||||||||||||
Amount
|
Paid
|
Amount
|
Paid
|
Amount
|
Paid
|
|||||||||||||||||||
Demand
|
$ | 407,344 | N/A | $ | 407,980 | N/A | $ | 469,015 | N/A | |||||||||||||||
Interest-bearing
demand
|
735,677 | 0.99 | % | 844,136 | 1.84 | % | 889,069 | 3.46 | % | |||||||||||||||
Savings
|
33,275 | 0.22 | % | 36,761 | 0.37 | % | 41,327 | 0.49 | % | |||||||||||||||
Time
|
688,430 | 2.60 | % | 386,990 | 3.32 | % | 340,324 | 4.64 | % | |||||||||||||||
Total
Deposits
|
$ | 1,864,726 | $ | 1,675,867 | $ | 1,739,735 |
(dollars in thousands)
|
Time deposits of
$100,000 or more (1)
|
All other Time deposits (2)
|
||||||||||||||
Remaining time to maturity
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||
3 months or less
|
$ | 22,151 | 8.98 | % | $ | 121,850 | 38.73 | % | ||||||||
Due after 3 months through
6 months
|
55,094 | 19.66 | % | 72,246 | 22.97 | % | ||||||||||
Due after 6 months through
12 months
|
77,539 | 27.68 | % | 67,605 | 21.49 | % | ||||||||||
Due after 12 months
|
122,383 | 43.68 | % | 52,889 | 16.81 | % | ||||||||||
Total
|
$ | 280,167 | 100.00 | % | $ | 314,590 | 100.00 | % |
(dollars
in thousands)
|
Payments Due by Period
|
|||||||||||||||||||
Total
|
Less Than
1 Year
|
1 to 3 Years
|
3 to 5
Years
|
More
Than
5 Years
|
||||||||||||||||
Time
deposits of $100,000 and over
|
$ | 280,167 | $ | 157,784 | $ | 122,383 | $ | - | $ | - | ||||||||||
Federal
Home Loan Bank advances
|
195,000 | - | 135,000 | 10,000 | 50,000 | |||||||||||||||
Junior
subordinated debentures
|
68,558 | - | - | - | 68,558 | |||||||||||||||
Operating
leases
|
13,734 | 1,813 | 3,301 | 2,534 | 6,086 | |||||||||||||||
Total
contractual obligations
|
$ | 557,459 | $ | 159,597 | $ | 260,684 | $ | 12,534 | $ | 124,644 |
Commitments
to extend credit
|
$ | 253,362 | ||
Commitments
under credit card lines of credit
|
28,455 | |||
Standby
letters of credit
|
6,932 | |||
Total
off-balance sheet commitments
|
$ | 288,749 |
Actual Market
Rates at
December 2009
|
Estimated Rates at
December
2010
|
Declining Rates at
December 2010
|
Alt. Rising
Rates
at December
2010
|
Rising Rates at
December
2010
|
||||||||||||||||
Federal
Funds Rate
|
0.25 | % | 0.75 | % | .063 | % | 1.50 | % | 3.25 | % | ||||||||||
Prime
Rate
|
3.25 | % | 3.75 | % | 3.063 | % | 4.50 | % | 6.50 | % | ||||||||||
Yield
Curve Spread
Fed
Funds to 10-year Treas.
|
3.78 | % | 1.90 | % | 1.94 | % | 1.25 | % | 0.55 | % |
Estimated Rate Scenario
compared to:
![]() |
First Twelve Month Average
% Change in Pro-forma
Net Interest Income
|
Second Twelve Month
Average % Change in Pro-
forma Net Interest Income
|
24th Month annualized %
Change in Pro-forma Net
Interest Income
|
|||||||||
Declining
Rate Scenario
|
(2.83 | )% | (8.04 | )% | (10.44 | )% | ||||||
Alternate
Rising Rate Scenario
|
0.00 | % | (0.01 | )% | 0.00 | % | ||||||
Rising
Rate Scenario
|
0.00 | % | (0.00 | )% | 2.53 | % |
(Dollars in thousands)
|
Within 90
Days
|
After 90
days within
one year
|
After one
year within
five years
|
After five
years
|
Total
|
|||||||||||||||
INTEREST
EARNING ASSETS:
|
||||||||||||||||||||
Investments
& fed funds sold
|
$ | 24,190 | $ | 13,682 | $ | 42,201 | $ | 56,626 | $ | 136,699 | ||||||||||
Interest
bearing balances with FRB
|
319,627 | - | - | - | 319,627 | |||||||||||||||
Loans
|
646,932 | 148,440 | 646,901 | 105,403 | 1,547,676 | |||||||||||||||
Total
interest earning assets
|
$ | 990,749 | $ | 162,122 | $ | 689,102 | $ | 162,029 | $ | 2,004,002 | ||||||||||
INTEREST
BEARING LIABILITIES:
|
||||||||||||||||||||
Interest-bearing
demand deposits
|
$ | 796,628 | $ | - | $ | - | $ | - | $ | 796,628 | ||||||||||
Savings
deposits
|
29,380 | - | - | - | 29,380 | |||||||||||||||
Time
deposits
|
147,019 | 272,484 | 160,173 | 15,081 | 594,757 | |||||||||||||||
Total
interest bearing deposits
|
973,027 | 272,484 | 160,173 | 15,081 | 1,420,765 | |||||||||||||||
Junior
subordinated debentures
|
54,898 | - | - | 13,660 | 68,558 | |||||||||||||||
Other
borrowings
|
130,207 | - | 66,000 | 40,000 | 236,207 | |||||||||||||||
Total
interest bearing liabilities
|
$ | 1,158,132 | $ | 272,484 | $ | 226,173 | $ | 68,741 | $ | 1,725,530 | ||||||||||
Interest
rate sensitivity gap
|
$ | (167,383 | ) | $ | (110,362 | ) | $ | 462,929 | $ | 93,288 | $ | 278,472 | ||||||||
Cumulative
interest rate sensitivity gap
|
$ | (167,383 | ) | $ | (277,745 | ) | $ | 185,184 | $ | 278,472 | $ | 278,472 | ||||||||
Interest
rate gap as a percentage of total interest earning assets
|
-8.35 | % | -5.51 | % | 23.10 | % | 4.66 | % | 13.90 | % | ||||||||||
Cumulative
interest rate gap as a percentage of total earning assets
|
-8.35 | % | -13.86 | % | 9.24 | % | 13.90 | % | 13.90 | % |
Page
|
||
Report
of Independent Registered Public Accounting Firm
|
66
|
|
Consolidated
Balance Sheets at December 31, 2009 and 2008
|
67
|
|
For
the Years Ended December 31, 2009, 2008 and 2007:
|
||
Consolidated
Statements of Operation
|
68
|
|
Consolidated
Statements of Changes in Stockholders' Equity
|
69
|
|
Consolidated
Statements of Cash Flows
|
72
|
|
Notes
to Consolidated Financial Statements
|
73
|
2009
|
2008
|
|||||||
(Restated)
|
||||||||
ASSETS
|
||||||||
Cash
and cash equivalents:
|
||||||||
Cash
and due from banks
|
$ | 38,759 | $ | 46,554 | ||||
Interest
bearing deposits
|
319,627 | 162 | ||||||
Federal
funds sold
|
936 | 2,230 | ||||||
Total
cash and cash equivalents
|
359,322 | 48,946 | ||||||
Investment
securities available-for-sale
|
133,755 | 107,480 | ||||||
Investment
securities held-to-maturity, estimated fair value of $2,143 ($2,247 in
2008)
|
2,008 | 2,211 | ||||||
Federal
Home Loan Bank (FHLB) stock
|
10,472 | 10,472 | ||||||
Loans,
net
|
1,489,090 | 1,909,018 | ||||||
Premises
and equipment, net
|
37,367 | 39,763 | ||||||
Core
deposit intangibles
|
6,388 | 7,921 | ||||||
Bank-owned
life insurance (BOLI)
|
33,635 | 33,568 | ||||||
Other
real estate owned (OREO), net
|
28,860 | 52,727 | ||||||
Income
taxes receivable
|
43,256 | 21,230 | ||||||
Accrued
interest and other assets
|
27,975 | 44,971 | ||||||
Total
assets
|
$ | 2,172,128 | $ | 2,278,307 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Demand
|
$ | 394,583 | $ | 364,146 | ||||
Interest
bearing demand
|
796,628 | 816,693 | ||||||
Savings
|
29,380 | 33,203 | ||||||
Time
|
594,757 | 580,569 | ||||||
Total
deposits
|
1,815,348 | 1,794,611 | ||||||
Junior
subordinated debentures
|
68,558 | 68,558 | ||||||
Other
borrowings
|
195,207 | 248,975 | ||||||
Temporary
Liquidity Guarantee Program (TLGP) senior unsecured debt
|
41,000 | - | ||||||
Customer
repurchase agreements
|
- | 9,871 | ||||||
Accrued
interest and other liabilities
|
28,697 | 21,053 | ||||||
Total
liabilities
|
2,148,810 | 2,143,068 | ||||||
Stockholders'
equity:
|
||||||||
Preferred
stock, no par value; 5,000,000 shares authorized; none issued or
outstanding
|
- | - | ||||||
Common
stock, no par value; 45,000,000 shares authorized; 28,174,163 shares
issued and outstanding (28,088,110 in 2008)
|
159,617 | 158,489 | ||||||
Accumulated
deficit
|
(137,953 | ) | (23,124 | ) | ||||
Accumulated
other comprehensive income (loss)
|
1,654 | (126 | ) | |||||
Total
stockholders' equity
|
23,318 | 135,239 | ||||||
Total
liabilities and stockholders' equity
|
$ | 2,172,128 | $ | 2,278,307 |
2009
|
2008
|
2007
|
||||||||||
(Restated)
|
||||||||||||
Interest
and dividend income:
|
||||||||||||
Interest
and fees on loans
|
$ | 101,081 | $ | 132,979 | $ | 165,361 | ||||||
Taxable
interest on investment securities
|
5,089 | 4,451 | 5,160 | |||||||||
Nontaxable
interest on investment securities
|
138 | 189 | 283 | |||||||||
Interest
on interest bearing deposits
|
486 | 11 | 195 | |||||||||
Interest
on federal funds sold
|
17 | 31 | 187 | |||||||||
Dividends
on FHLB stock
|
- | 111 | 42 | |||||||||
Total
interest and dividend income
|
106,811 | 137,772 | 171,228 | |||||||||
Interest
expense:
|
||||||||||||
Deposits:
|
||||||||||||
Interest
bearing demand
|
7,267 | 15,541 | 30,727 | |||||||||
Savings
|
73 | 135 | 202 | |||||||||
Time
|
17,915 | 12,850 | 15,804 | |||||||||
Junior
subordinated debentures, other borrowings, and TLGP senior unsecured
debt
|
8,880 | 13,845 | 15,991 | |||||||||
Total
interest expense
|
34,135 | 42,371 | 62,724 | |||||||||
Net
interest income
|
72,676 | 95,401 | 108,504 | |||||||||
Loan
loss provision
|
134,000 | 99,593 | 19,400 | |||||||||
Net
interest income (loss) after loan loss provision
|
(61,324 | ) | (4,192 | ) | 89,104 | |||||||
Noninterest
income:
|
||||||||||||
Service
charges on deposit accounts, net
|
8,582 | 9,894 | 9,710 | |||||||||
Mortgage
banking income, net
|
2,827 | 2,100 | 2,730 | |||||||||
Card
issuer and merchant service fees, net
|
3,027 | 3,705 | 3,930 | |||||||||
Earnings
on BOLI
|
68 | 264 | 1,574 | |||||||||
Gains
on sales of investment securities available-for sale
|
648 | 436 | 260 | |||||||||
Gain
on sale of merchant card processing business
|
3,247 | - | - | |||||||||
Other
income
|
3,227 | 3,592 | 3,021 | |||||||||
Total
noninterest income
|
21,626 | 19,991 | 21,225 | |||||||||
Noninterest
expenses:
|
||||||||||||
Salaries
and employee benefits
|
33,149 | 33,708 | 36,344 | |||||||||
Equipment
|
2,153 | 2,156 | 2,250 | |||||||||
Occupancy
|
4,682 | 4,767 | 4,438 | |||||||||
Communications
|
1,982 | 2,038 | 1,988 | |||||||||
FDIC
insurance
|
6,933 | 1,709 | 777 | |||||||||
OREO
|
23,140 | 8,442 | 123 | |||||||||
Professional
services
|
7,362 | 2,896 | 2,296 | |||||||||
Prepayment
penalties on FHLB borrowings
|
2,081 | - | - | |||||||||
Reduction
in reserve for unfunded loan commitments
|
(335 | ) | (2,124 | ) | (50 | ) | ||||||
Goodwill
impairment
|
- | 105,047 | - | |||||||||
Other
expenses
|
13,569 | 15,032 | 14,428 | |||||||||
Total
noninterest expenses
|
94,716 | 173,671 | 62,594 | |||||||||
Income
(loss) before income taxes
|
(134,414 | ) | (157,872 | ) | 47,735 | |||||||
Provision
(credit) for income taxes
|
(19,585 | ) | (23,306 | ) | 17,756 | |||||||
Net
income (loss)
|
$ | (114,829 | ) | $ | (134,566 | ) | $ | 29,979 | ||||
Basic
earnings (loss) per common share
|
$ | (4.10 | ) | $ | (4.82 | ) | $ | 1.06 | ||||
Diluted
earnings (loss) per common share
|
$ | (4.10 | ) | $ | (4.82 | ) | $ | 1.05 |
Number of
shares
|
Comprehensive
income (loss)
|
Common
stock
|
Retained
earnings
|
Accumulated
other
comprehensive
income (loss)
|
Total
stockholders'
equity
|
|||||||||||||||||||
Balances
at December 31, 2006
|
28,330,259 | $ | - | $ | 162,199 | $ | 98,112 | $ | 765 | $ | 261,076 | |||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||
Net
income
|
- | 29,979 | - | 29,979 | - | 29,979 | ||||||||||||||||||
Other
comprehensive loss -
|
||||||||||||||||||||||||
unrealized
losses on investment securities
|
||||||||||||||||||||||||
available-for-sale
of approximately $70 (net of
|
||||||||||||||||||||||||
income
taxes of approximately $43), net of
|
||||||||||||||||||||||||
reclassification
adjustment for net gains
|
||||||||||||||||||||||||
on
sales of investment securities
|
||||||||||||||||||||||||
available-for-sale
included in net income of
|
||||||||||||||||||||||||
approximately
$162 (net of income taxes
|
||||||||||||||||||||||||
of
approximately $98)
|
- | (232 | ) | - | - | (232 | ) | (232 | ) | |||||||||||||||
Total
comprehensive income, net
|
- | $ | 29,747 | - | - | - | - | |||||||||||||||||
Nonvested
restricted stock grants, net
|
40,904 | - | - | - | - | |||||||||||||||||||
Stock-based
compensation expense
|
- | 1,632 | - | - | 1,632 | |||||||||||||||||||
Cash
dividends paid (aggregating $.37 per share)
|
- | - | (10,491 | ) | - | (10,491 | ) | |||||||||||||||||
Stock
options exercised
|
146,109 | 1,979 | - | - | 1,979 | |||||||||||||||||||
Tax
effect from non-qualified stock options exercised
|
- | 548 | - | - | 548 | |||||||||||||||||||
Repurchases
of common stock
|
(483,100 | ) | (9,205 | ) | - | - | (9,205 | ) | ||||||||||||||||
Balances
at December 31, 2007
|
28,034,172 | 157,153 | 117,600 | 533 | 275,286 |
Number of
shares
|
Comprehensive
income (loss)
|
Common
stock
|
Retained
earnings
(accumulated
deficit)
|
Accumulated
other
comprehensive
income (loss)
|
Total
stockholders'
equity
|
|||||||||||||||||||
Balances
at December 31, 2007
|
28,034,172 | $ | - | $ | 157,153 | $ | 117,600 | $ | 533 | $ | 275,286 | |||||||||||||
Comprehensive
loss:
|
||||||||||||||||||||||||
Net
loss
|
- | (134,566 | ) | - | (134,566 | ) | - | (134,566 | ) | |||||||||||||||
Other
comprehensive loss -
|
||||||||||||||||||||||||
unrealized
losses on investment securities
|
||||||||||||||||||||||||
available-for-sale
of approximately $385 (net of
|
||||||||||||||||||||||||
income
taxes of approximately $242), net of
|
||||||||||||||||||||||||
reclassification
adjustment for net gains
|
||||||||||||||||||||||||
on
sales of investment securities
|
||||||||||||||||||||||||
available-for-sale
included in net loss of
|
||||||||||||||||||||||||
approximately
$274 (net of income taxes
|
||||||||||||||||||||||||
of
approximately $162)
|
- | (659 | ) | - | - | (659 | ) | (659 | ) | |||||||||||||||
Total
comprehensive loss
|
- | $ | (135,225 | ) | - | - | - | - | ||||||||||||||||
Nonvested
restricted stock grants, net
|
42,433 | - | - | - | - | |||||||||||||||||||
Stock-based
compensation expense
|
- | 1,566 | - | - | 1,566 | |||||||||||||||||||
Cash
dividends paid (aggregating $0.22 per share)
|
- | - | (6,158 | ) | - | (6,158 | ) | |||||||||||||||||
Stock
options exercised
|
11,505 | 67 | - | - | 67 | |||||||||||||||||||
Tax
effect from non-qualified stock options exercised
|
- | (297 | ) | - | - | (297 | ) | |||||||||||||||||
Balances
at December 31, 2008
|
28,088,110 | 158,489 | (23,124 | ) | (126 | ) | 135,239 |
Number of
shares
|
Comprehensive
income (loss)
|
Common
stock
|
Retained
earnings
(accumulated
deficit)
|
Accumulated
other
comprehensive
income (loss)
|
Total
stockholders'
equity
|
|||||||||||||||||||
(Restated)
|
(Restated)
|
(Restated)
|
||||||||||||||||||||||
Balances
at December 31, 2008
|
28,088,110 | $ | - | $ | 158,489 | $ | (23,124 | ) | $ | (126 | ) | $ | 135,239 | |||||||||||
Comprehensive
loss:
|
||||||||||||||||||||||||
Net
loss
|
- | (114,829 | ) | - | (114,829 | ) | - | (114,829 | ) | |||||||||||||||
Other
comprehensive income -
|
||||||||||||||||||||||||
unrealized
gains on investment securities
|
||||||||||||||||||||||||
available-for-sale
of approximately $2,183 (net of
|
||||||||||||||||||||||||
income
taxes of approximately $1,337), net of
|
||||||||||||||||||||||||
reclassification
adjustment for net gains
|
||||||||||||||||||||||||
on
sales of investment securities
|
||||||||||||||||||||||||
available-for-sale
included in net loss of
|
||||||||||||||||||||||||
approximately
$402 (net of income taxes
|
||||||||||||||||||||||||
of
approximately $246)
|
- | 1,780 | - | - | 1,780 | 1,780 | ||||||||||||||||||
Total
comprehensive loss, net
|
- | $ | (113,049 | ) | - | - | - | - | ||||||||||||||||
Nonvested
restricted stock grants, net
|
86,053 | - | - | - | - | |||||||||||||||||||
Stock-based
compensation expense
|
- | 1,258 | - | - | 1,258 | |||||||||||||||||||
Income
taxes withheld on vested restricted stock
|
- | (130 | ) | - | - | (130 | ) | |||||||||||||||||
Balances
at December 31, 2009
|
28,174,163 | $ | 159,617 | $ | (137,953 | ) | $ | 1,654 | $ | 23,318 |
2009
|
2008
|
2007
|
||||||||||
Cash
flows from operating activities:
|
(Restated)
|
|||||||||||
Net
income (loss)
|
$ | (114,829 | ) | $ | (134,566 | ) | $ | 29,979 | ||||
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities:
|
||||||||||||
Depreciation
and amortization
|
6,185 | 5,443 | 4,541 | |||||||||
Goodwill
impairment
|
- | 105,047 | - | |||||||||
Loan
loss provision
|
134,000 | 99,593 | 19,400 | |||||||||
Writedown
of OREO
|
17,981 | 5,460 | - | |||||||||
Provision
(credit) for deferred income taxes
|
22,168 | (11,870 | ) | (6,841 | ) | |||||||
Discounts
(gains) on sales of mortgage loans, net
|
(737 | ) | 367 | (102 | ) | |||||||
Gains
on sales of investment securities available-for-sale
|
(648 | ) | (436 | ) | (260 | ) | ||||||
Deferred
benefit plan expenses
|
1,744 | 1,762 | 2,690 | |||||||||
Stock-based
compensation expense
|
1,258 | 1,566 | 1,632 | |||||||||
Gains
on sales of premises and equipment, net
|
(270 | ) | (574 | ) | (342 | ) | ||||||
Losses
on sales of OREO
|
3,504 | 662 | - | |||||||||
Increase
in accrued interest and other assets
|
(29,099 | ) | (21,625 | ) | (2,569 | ) | ||||||
Increase
(decrease) in accrued interest and other liabilities
|
4,809 | (2,796 | ) | (7,900 | ) | |||||||
Originations
of mortgage loans
|
(177,206 | ) | (121,663 | ) | (170,095 | ) | ||||||
Proceeds
from sales of mortgage loans
|
178,948 | 124,186 | 168,917 | |||||||||
Net
cash provided by operating activities
|
47,808 | 50,556 | 39,050 | |||||||||
Cash
flows from investing activities:
|
||||||||||||
Purchases
of investment securities available-for-sale
|
(54,956 | ) | (48,100 | ) | (14,859 | ) | ||||||
Proceeds
from maturities, calls and prepayments of investment securities
available-for-sale
|
21,670 | 23,329 | 34,137 | |||||||||
Proceeds
from sales of investment securities available-for-sale
|
10,137 | 425 | 525 | |||||||||
Proceeds
from maturities and calls of investment securities
held-to-maturity
|
200 | 965 | 505 | |||||||||
Purchases
of FHLB stock
|
- | (3,481 | ) | - | ||||||||
Loan
reductions (originations), net
|
258,864 | (59,658 | ) | (173,712 | ) | |||||||
Purchases
of premises and equipment, net
|
244 | (3,555 | ) | 458 | ||||||||
Proceeds
from sales of OREO
|
28,441 | 6,676 | 2,227 | |||||||||
Net
cash provided by (used in) investing activities
|
264,600 | (83,399 | ) | (150,719 | ) | |||||||
Cash
flows from financing activities:
|
||||||||||||
Net
increase in deposits
|
20,737 | 127,473 | 5,522 | |||||||||
Increase
in TLGP senior unsecured debt
|
41,000 | - | - | |||||||||
Net
decrease in customer repurchase agreements
|
(9,871 | ) | (8,743 | ) | (25,404 | ) | ||||||
Net
decrease in federal funds purchased
|
- | (14,802 | ) | (375 | ) | |||||||
Proceeds
from FHLB advances
|
140,000 | 1,353,477 | 505,000 | |||||||||
Repayment
of FHLB advances
|
(73,457 | ) | (1,412,449 | ) | (437,947 | ) | ||||||
Net
increase (decrease) in other borrowings
|
(120,311 | ) | (19,920 | ) | 89,524 | |||||||
Cash
dividends paid
|
- | (6,158 | ) | (10,491 | ) | |||||||
Proceeds
from stock options exercised
|
- | 67 | 1,979 | |||||||||
Repurchases
of common stock
|
- | - | (9,205 | ) | ||||||||
Tax
benefit (cost) from non-qualified stock options exercised
|
- | (297 | ) | 548 | ||||||||
Income
taxes withheld on vested restricted stock
|
(130 | ) | - | - | ||||||||
Net
cash provided by financing activities
|
(2,032 | ) | 18,648 | 119,151 | ||||||||
Net
increase (decrease) in cash and cash equivalents
|
310,376 | (14,195 | ) | 7,482 | ||||||||
Cash
and cash equivalents at beginning of year
|
48,946 | 63,141 | 55,659 | |||||||||
Cash
and cash equivalents at end of year
|
$ | 359,322 | $ | 48,946 | $ | 63,141 |
|
Basis of
presentation
|
|
Description of
business
|
|
During
2009, 2008 and 2007, the Company paid approximately $32,279, $42,521 and
$62,902, respectively, in interest
expense.
|
|
During
2009, the Company did not make any income tax payments, and received
income tax refunds of approximately $19,951. During 2008 and 2007, the
Company made income tax payments of approximately $7,338 and $24,940,
respectively.
|
|
Gains
and losses on the sales of available-for-sale securities are determined
using the specific-identification method. Premiums and
discounts on available-for-sale securities are recognized in interest
income using the interest method generally over the period to
maturity.
|
|
Declines
in the fair value of individual held-to-maturity and available-for-sale
securities below their cost that are deemed to be other-than-temporary
impairment (OTTI) would result in write-downs of the individual securities
to their fair value. In estimating other-than-temporary
impairment losses, management considers, among other things, (i) the
length of time and the extent to which the fair value has been less than
cost, (ii) the financial condition and near term prospects of the issuer,
and (iii) the intent and ability of the Company to retain its investment
in the issuer for a period of time sufficient to allow for any anticipated
recovery of fair value. The related write-downs would be
included in earnings as realized losses. Management believes
that all unrealized losses on investment securities at December 31, 2009
and 2008 are temporary (see Note
4).
|
|
MSRs
are measured by allocating the carrying value of loans between the assets
sold and interest retained, based upon the relative estimated fair value
at date of sale. MSRs are capitalized at their allocated
carrying value and amortized in proportion to, and over the period of,
estimated future net servicing revenue. Impairment of MSRs is
assessed based on the estimated fair value of servicing
rights. Fair value is estimated using discounted cash flows of
servicing revenue less servicing costs taking into consideration market
estimates of prepayments as applied to underlying loan type, note rate and
term (see also Note 7). Impairment adjustments, if any, are
recorded through a valuation
allowance.
|
|
Premises
and equipment are stated at cost, less accumulated depreciation and
amortization. Depreciation and amortization are computed on the
straight-line method over the shorter of the estimated useful lives of the
assets or terms of the leases. Amortization of leasehold
improvements is included in depreciation and amortization expense in the
accompanying consolidated financial
statements.
|
|
OREO
|
|
Advertising
|
|
Advertising
costs are generally charged to expense during the year in which they are
incurred.
|
|
By
regulation, the Bank must meet reserve requirements as established by the
FRB (approximately $5,066 and $9,993 at December 31, 2009 and 2008,
respectively). Accordingly, the Bank complies with such
requirements by holding cash and maintaining average reserve balances with
the FRB in accordance with such
regulations.
|
4.
|
Investment
securities
|
|
Investment
securities at December 31, 2009 and 2008 consisted of the
following:
|
Gross
|
Gross
|
|||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Estimated
|
|||||||||||||
cost
|
gains
|
losses
|
fair value
|
|||||||||||||
2009
|
||||||||||||||||
Available-for-sale
|
||||||||||||||||
U.S.
Agency and non-agency mortgage-backed
|
||||||||||||||||
securities
(MBS)
|
$ | 114,560 | $ | 2,793 | $ | 714 | $ | 116,639 | ||||||||
U.S.
Government and agency securities
|
7,500 | - | 19 | 7,481 | ||||||||||||
Obligations
of state and political subdivisions
|
1,478 | 120 | - | 1,598 | ||||||||||||
U.S.
Agency asset-backed securities
|
7,108 | 478 | - | 7,586 | ||||||||||||
Mutual
fund
|
440 | 11 | - | 451 | ||||||||||||
$ | 131,086 | $ | 3,402 | $ | 733 | $ | 133,755 | |||||||||
Held-to-maturity
|
||||||||||||||||
Obligations
of state and political subdivisions
|
$ | 2,008 | $ | 135 | $ | - | $ | 2,143 |
Gross
|
Gross
|
|||||||||||||||
Amortized
|
unrealized
|
unrealized
|
Estimated
|
|||||||||||||
cost
|
gains
|
losses
|
fair value
|
|||||||||||||
2008
|
||||||||||||||||
Available-for-sale
|
||||||||||||||||
U.S.
Agency and non-agency MBS
|
$ | 94,292 | $ | 607 | $ | 1,365 | $ | 93,534 | ||||||||
U.S.
Government and agency securities
|
8,273 | 453 | - | 8,726 | ||||||||||||
Obligations
of state and political subdivisions
|
1,503 | 32 | 5 | 1,530 | ||||||||||||
U.S.
Agency asset-backed securities
|
3,193 | 67 | - | 3,260 | ||||||||||||
Mutual
fund
|
423 | 7 | - | 430 | ||||||||||||
$ | 107,684 | $ | 1,166 | $ | 1,370 | $ | 107,480 | |||||||||
Held-to-maturity
|
||||||||||||||||
Obligations
of state and political subdivisions
|
$ | 2,211 | $ | 36 | $ | - | $ | 2,247 |
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Estimated
fair value
|
Unrealized
losses
|
Estimated
fair value
|
Unrealized
losses
|
Estimated
fair value
|
Unrealized
losses
|
|||||||||||||||||||
2009
|
||||||||||||||||||||||||
U.S.
Agency and non-agency MBS
|
$ | 22,931 | $ | 690 | $ | 2,581 | $ | 24 | $ | 25,512 | $ | 714 | ||||||||||||
U.S.
Government and
|
||||||||||||||||||||||||
agency
securities
|
7,481 | 19 | - | - | 7,481 | 19 | ||||||||||||||||||
$ | 30,412 | $ | 709 | $ | 2,581 | $ | 24 | $ | 32,993 | $ | 733 | |||||||||||||
2008
|
||||||||||||||||||||||||
U.S.
Agency and non-agency MBS
|
$ | 56,029 | $ | 1,362 | $ | 183 | $ | 3 | $ | 56,212 | $ | 1,365 | ||||||||||||
Obligations
of state and
|
||||||||||||||||||||||||
political
subdivisions
|
295 | 5 | - | - | 295 | 5 | ||||||||||||||||||
$ | 56,324 | $ | 1,367 | $ | 183 | $ | 3 | $ | 56,507 | $ | 1,370 |
|
Management
of the Company has the intent and ability to hold the investment
securities classified as held-to-maturity until they mature, at which time
the Company will receive full amortized cost value for such investment
securities. Furthermore, as of December 31, 2009, management
does not have the intent to sell any of the securities classified as
available-for-sale in the table above and believes that it is more likely
than not that the Company will not have to sell any such securities before
a recovery of cost.
|
|
The
amortized cost and estimated fair value of investment securities at
December 31, 2009, by contractual maturity, are shown
below. Expected maturities will differ from contractual
maturities, because borrowers may have the right to call or prepay
obligations with or without call or prepayment
penalties.
|
Estimated
|
||||||||
Amortized
|
fair
|
|||||||
Available-for-sale
|
cost
|
value
|
||||||
Due
one year or less
|
$ | 1,308 | $ | 1,336 | ||||
Due
after one year through five years
|
1,195 | 1,267 | ||||||
Due
after five years through ten years
|
9,257 | 9,358 | ||||||
Due
after ten years
|
118,886 | 121,343 | ||||||
Mutual
fund
|
440 | 451 | ||||||
$ | 131,086 | $ | 133,755 | |||||
Held-to-maturity
|
||||||||
Due
one year or less
|
$ | 200 | $ | 202 | ||||
Due
after one year through five years
|
1,611 | 1,726 | ||||||
Due
after five years through ten years
|
197 | 215 | ||||||
$ | 2,008 | $ | 2,143 |
|
Investment
securities with a carrying value of approximately $85,457 and $109,293 at
December 31, 2009 and 2008, respectively, were pledged to secure
public deposits, customer repurchase agreements (at December 31, 2008
only) and for other purposes as required or permitted by
law.
|
|
The
Company had no gross realized losses on sales of investment securities
during the years ended December 31, 2009, 2008 and 2007. Gross realized
gains on sales of investment securities during the years ended December
31, 2009, 2008 and 2007 are as disclosed in the accompanying consolidated
statements of operations.
|
5.
|
Loans
|
|
Loans
at December 31, 2009 and 2008 consisted of the
following:
|
2009
|
2008
|
|||||||
(Restated)
|
||||||||
Commercial
|
$ | 420,155 | $ | 582,831 | ||||
Real
Estate:
|
||||||||
Construction/lot
|
308,346 | 517,721 | ||||||
Mortgage
|
93,465 | 96,248 | ||||||
Commercial
|
675,728 | 703,149 | ||||||
Consumer
|
49,982 | 56,235 | ||||||
Total
loans
|
1,547,676 | 1,956,184 | ||||||
Less
reserve for loan losses
|
58,586 | 47,166 | ||||||
Loans,
net
|
$ | 1,489,090 | $ | 1,909,018 |
6.
|
Reserve for credit
losses
|
|
Transactions
in the reserve for loan losses and unfunded loan commitments for the years
ended December 31, 2009, 2008 and 2007 were as
follows:
|
Reserve for loan losses
|
2009
|
2008
|
2007
|
|||||||||
(Restated)
|
||||||||||||
Balance
at beginning of year
|
$ | 47,166 | $ | 33,875 | $ | 23,585 | ||||||
Loan
loss provision
|
134,000 | 99,593 | 19,400 | |||||||||
Recoveries
|
3,745 | 1,980 | 1,290 | |||||||||
Loans
charged off
|
(126,325 | ) | (88,282 | ) | (10,400 | ) | ||||||
Balance
at end of year
|
$ | 58,586 | $ | 47,166 | $ | 33,875 | ||||||
Reserve
for unfunded loan commitments
|
||||||||||||
Balance
at beginning of year
|
$ | 1,039 | $ | 3,163 | $ | 3,213 | ||||||
Credit
for unfunded loan commitments
|
(335 | ) | (2,124 | ) | (50 | ) | ||||||
Balance
at end of year
|
$ | 704 | $ | 1,039 | $ | 3,163 | ||||||
Reserve
for credit losses
|
||||||||||||
Reserve
for loan losses
|
$ | 58,586 | $ | 47,166 | $ | 33,875 | ||||||
Reserve
for unfunded loan commitments
|
704 | 1,039 | 3,163 | |||||||||
Total
reserve for credit losses
|
$ | 59,290 | $ | 48,205 | $ | 37,038 |
2009
|
2008
|
|||||||
Impaired
loans with an associated allowance
|
$ | 114,039 | $ | 120,468 | ||||
Impaired
loans without an associated allowance
|
33,543 | - | ||||||
Total
recorded investment in impaired loans
|
$ | 147,582 | $ | 120,468 | ||||
Amount
of the reserve for loan losses allocated to impaired loans
|
$ | 106 | $ | 2,699 |
2009
|
2008
|
|||||||
Loans
on nonaccrual status
|
$ | 132,110 | $ | 120,468 | ||||
Loans
past due 90 days or more but not on nonaccrual status
|
- | 5 | ||||||
OREO
|
29,609 | 52,727 | ||||||
Total
non-performing assets
|
$ | 161,719 | $ | 173,200 |
7.
|
Mortgage banking
activities
|
2009
|
2008
|
2007
|
||||||||||
Balance
at beginning of year
|
$ | 3,605 | $ | 3,756 | $ | 4,096 | ||||||
Additions
|
1,873 | 989 | 839 | |||||||||
Amortization
|
(1,531 | ) | (1,140 | ) | (1,179 | ) | ||||||
Balance
at end of year
|
$ | 3,947 | $ | 3,605 | $ | 3,756 |
2009
|
2008
|
2007
|
||||||||||
Origination
and processing fees
|
$ | 1,951 | $ | 1,363 | $ | 1,744 | ||||||
Gains
on sales of mortgage loans, net
|
1,054 | 583 | 898 | |||||||||
Servicing
fees
|
1,353 | 1,294 | 1,267 | |||||||||
Amortization
|
(1,531 | ) | (1,140 | ) | (1,179 | ) | ||||||
Mortgage
banking income, net
|
$ | 2,827 | $ | 2,100 | $ | 2,730 |
|
Premises
and equipment at December 31, 2009 and 2008 consisted of the
following:
|
2009
|
2008
|
|||||||
Land
|
$ | 9,148 | $ | 9,237 | ||||
Buildings
and leasehold improvements
|
30,420 | 30,796 | ||||||
Furniture
and equipment
|
15,094 | 14,684 | ||||||
54,662 | 54,717 | |||||||
Less
accumulated depreciation and amortization
|
17,295 | 15,212 | ||||||
37,367 | 39,505 | |||||||
Construction
in progress
|
- | 258 | ||||||
Premises
and equipment, net
|
$ | 37,367 | $ | 39,763 |
2010
|
$ | 1,476 | ||
2011
|
1,476 | |||
2012
|
1,476 | |||
2013
|
1,476 | |||
2014
|
484 | |||
$ | 6,388 |
2009
|
2008
|
2007
|
||||||||||
(Restated)
|
||||||||||||
Balance
at beginning of year
|
$ | 52,727 | $ | 9,765 | $ | 326 | ||||||
Additions
|
26,059 | 55,760 | 11,651 | |||||||||
Dispositions
|
(49,036 | ) | (7,458 | ) | (2,212 | ) | ||||||
Change
in valuation allowance
|
(890 | ) | (5,340 | ) | - | |||||||
Balances
at end of year
|
$ | 28,860 | $ | 52,727 | $ | 9,765 |
2009
|
2008
|
|||||||
(Restated)
|
||||||||
Balance
at beginning of year
|
$ | 5,340 | $ | - | ||||
Additions
to the valuation allowance
|
17,981 | 5,460 | ||||||
Reductions
due to sales of OREO
|
(17,091 | ) | (120 | ) | ||||
Balance
at end of year
|
$ | 6,230 | $ | 5,340 |
11.
|
Time
deposits
|
|
Time
deposits in amounts of $100,000 or more aggregated approximately $280,000
and $349,000 at December 31, 2009 and 2008,
respectively.
|
|
At
December 31, 2009, the scheduled annual maturities of all time
deposits were approximately as
follows:
|
2010
|
$ | 419,485 | ||
2011
|
91,950 | |||
2012
|
44,323 | |||
2013
|
22,318 | |||
2014
|
1,543 | |||
Thereafter
|
15,138 | |||
$ | 594,757 |
12.
|
Junior subordinated
debentures
|
Junior
|
Effective rate at
|
||||||||||||||
Issuance
|
Maturity
|
subordinated
|
Interest
|
December 31,
|
|||||||||||
Issuance
Trust
|
date
|
date
|
debentures (A)
|
rate
|
2009
|
||||||||||
3-month
|
|||||||||||||||
LIBOR
|
|||||||||||||||
Cascade
Bancorp Trust I (D)
|
12/31/2004
|
3/15/2035
|
$ | 20,619 | + 1.80 | % (C) | 2.054 | % | |||||||
Cascade
Bancorp Statutory Trust II (E)
|
3/31/2006
|
6/15/2036
|
13,660 | 6.619 | % (B) | 6.619 | % | ||||||||
3-month
|
|||||||||||||||
LIBOR
|
|||||||||||||||
Cascade
Bancorp Statutory Trust III (E)
|
3/31/2006
|
6/15/2036
|
13,660 | + 1.33 | % (C) | 1.584 | % | ||||||||
3-month
|
|||||||||||||||
LIBOR
|
|||||||||||||||
Cascade
Bancorp Statutory Trust IV (F)
|
6/29/2006
|
9/15/2036
|
20,619 | + 1.54 | % (C) | 1.794 | % | ||||||||
Weighted-
|
|||||||||||||||
Totals
|
$ | 68,558 |
average
rate
|
2.792 | % |
|
(A)
|
The
Junior Subordinated Debentures (Debentures) were issued with substantially
the same terms as the TPS and are the sole assets of the related trusts.
The Company's obligations under the Debentures and related agreements,
taken together, constitute a full and irrevocable guarantee by the Company
of the obligations of the trusts.
|
|
(B)
|
The
Debentures bear a fixed quarterly interest rate for 20 quarters, at which
time the rate begins to float on a quarterly basis based on the
three-month London Inter-Bank Offered Rate (LIBOR) plus 1.33% thereafter
until maturity.
|
|
(C)
|
The
three-month LIBOR in effect as of December 31, 2009 was
0.25363%.
|
|
(D)
|
The
TPS may be called by the Company at par at any time subsequent to March
15, 2010 and may be redeemed earlier upon the occurrence of certain events
that impact the income tax or the regulatory capital treatment of the
TPS.
|
|
(E)
|
The
TPS may be called by the Company at par at any time subsequent to June 15,
2011 and may be redeemed earlier upon the occurrence of certain events
that impact the income tax or the regulatory capital treatment of the
TPS.
|
|
(F)
|
The
TPS may be called by the Company at par at any time subsequent to
September 15, 2011 and may be redeemed earlier upon the occurrence of
certain events that impact the income tax or the regulatory capital
treatment of the TPS.
|
13.
|
Other
borrowings
|
|
At
December 31, 2009, the contractual maturities of the Bank’s FHLB
borrowings outstanding were approximately as
follows:
|
2011
|
$ | 50,000 | ||
2012
|
85,000 | |||
2013
|
- | |||
2014
|
10,000 | |||
2015
|
25,000 | |||
Thereafter
|
25,000 | |||
$ | 195,000 |
|
At
December 31, 2009, the Bank had approximately $83,383 in available
short-term borrowings from the FRB, collateralized by certain of the
Bank’s loans and securities. Such available borrowings include
participation in the Treasury Tax and Loan (TT&L) program of the
federal government, with access to this funding source limited to $300 and
fully at the discretion of the U.S. Treasury. Of the total
available FRB borrowings, at December 31, 2009, the Bank had approximately
$207 ($120,518 at December 31, 2008) in total borrowings outstanding from
the FRB. FRB borrowings at December 31, 2009 consisted of
TT&L overnight borrowings at an interest rate of
0.25%.
|
14.
|
Commitments,
guarantees and contingencies
|
|
The
Bank’s exposure to credit loss for commitments to extend credit,
commitments under credit card lines of credit and standby letters of
credit is represented by the contractual amount of these
instruments. The Company follows the same credit policies in
underwriting and offering commitments and conditional obligations as it
does for on-balance sheet financial
instruments.
|
2009
|
2008
|
|||||||
Commitments
to extend credit
|
$ | 253,362 | $ | 465,500 | ||||
Commitments
under credit card lines of credit
|
28,455 | 30,522 | ||||||
Standby
letters of credit
|
6,932 | 18,583 | ||||||
Total
off-balance sheet financial instruments
|
$ | 288,749 | $ | 514,605 |
2010
|
$ | 1,813 | ||
2011
|
1,684 | |||
2012
|
1,617 | |||
2013
|
1,443 | |||
2014
|
1,091 | |||
Thereafter
|
6,086 | |||
$ | 13,734 |
|
Litigation
|
15.
|
Income
taxes
|
2009
|
2008
|
2007
|
||||||||||
Current:
|
||||||||||||
Federal
|
$ | (42,113 | ) | $ | (11,915 | ) | $ | 20,682 | ||||
State
|
360 | 479 | 3,915 | |||||||||
(41,753 | ) | (11,436 | ) | 24,597 | ||||||||
Deferred
|
22,168 | (11,870 | ) | (6,841 | ) | |||||||
Provision
(credit) for income taxes
|
$ | (19,585 | ) | $ | (23,306 | ) | $ | 17,756 |
2009
|
2008
|
2007
|
||||||||||
(Restated)
|
||||||||||||
Expected
federal income tax provision
|
||||||||||||
(credit)
at statutory rates
|
$ | (47,045 | ) | $ | (55,255 | ) | $ | 16,707 | ||||
State
income taxes, net of federal effect
|
(7,090 | ) | (2,860 | ) | 2,070 | |||||||
Effect
of nontaxable income, net
|
(441 | ) | (509 | ) | (928 | ) | ||||||
Valuation
allowance for deferred tax assets
|
35,517 | - | - | |||||||||
Goodwill
impairment
|
- | 35,830 | - | |||||||||
Other,
net
|
(526 | ) | (512 | ) | (93 | ) | ||||||
Provision
(credit) for income taxes
|
$ | (19,585 | ) | $ | (23,306 | ) | $ | 17,756 |
2009
|
2008
|
|||||||
(Restated)
|
||||||||
Deferred
tax assets:
|
||||||||
Reserve
for loan losses and unfunded loan commitments
|
$ | 24,195 | $ | 19,171 | ||||
Deferred
benefit plan expenses, net
|
6,252 | 5,742 | ||||||
State
net operating loss carryforwards
|
7,878 | 1,457 | ||||||
Tax
credit carryforwards
|
1,493 | - | ||||||
Net
unrealized losses on investment securities
|
- | 78 | ||||||
Allowance
for losses on OREO
|
3,305 | 2,124 | ||||||
Accrued
interest on non-accrual loans
|
685 | 1,970 | ||||||
Other
|
641 | 797 | ||||||
Deferred
tax assets
|
44,449 | 31,339 | ||||||
Valuation
allowance for deferred tax assets
|
(35,517 | ) | - | |||||
Deferred
tax assets, net of valuation allowance
|
8,932 | 31,339 | ||||||
Deferred
tax liabilities:
|
||||||||
Accumulated
depreciation and amortization
|
1,973 | 1,977 | ||||||
Deferred
loan income
|
1,646 | 1,674 | ||||||
MSRs
|
1,590 | 1,434 | ||||||
Purchased
intangibles related to F&M and CBGP
|
2,298 | 2,809 | ||||||
FHLB
stock dividends
|
580 | 573 | ||||||
Net
unrealized gains on investment securities
|
1,015 | - | ||||||
Other
|
845 | 626 | ||||||
Deferred
tax liabilities
|
9,947 | 9,093 | ||||||
Net
deferred tax assets (liabilities)
|
$ | (1,015 | ) | $ | 22,246 |
16.
|
Basic and diluted
earnings (loss) per common
share
|
Weighted-
|
||||||||||||
Net
|
average
|
|||||||||||
income (loss)
|
shares
|
Per-share
|
||||||||||
(numerator)
|
(denominator)
|
amount
|
||||||||||
(Restated)
|
(Restated)
|
|||||||||||
2009
|
||||||||||||
Basic
loss per common share —
|
||||||||||||
Net
loss
|
$ | (114,829 | ) | 28,001,110 | $ | (4.10 | ) | |||||
Effect
of stock options and nonvested restricted stock
|
- | - | ||||||||||
Diluted
loss per common share
|
$ | (114,829 | ) | 28,001,110 | $ | (4.10 | ) | |||||
Common
stock equivalent shares excluded due to antidilutive
effect
|
123,194 | |||||||||||
2008
|
||||||||||||
Basic
loss per common share —
|
||||||||||||
Net
loss
|
$ | (134,566 | ) | 27,935,736 | $ | (4.82 | ) | |||||
Effect
of stock options and nonvested restricted stock
|
- | - | ||||||||||
Diluted
loss per common share
|
$ | (134,566 | ) | 27,935,736 | $ | (4.82 | ) | |||||
Common
stock equivalent shares excluded due to antidilutive
effect
|
236,129 | |||||||||||
2007
|
||||||||||||
Basic
earnings per common share —
|
||||||||||||
Net
income
|
$ | 29,979 | 28,242,684 | $ | 1.06 | |||||||
Effect
of stock options and nonvested restricted stock
|
- | 334,720 | ||||||||||
Diluted
earnings per common share
|
$ | 29,979 | 28,577,404 | $ | 1.05 |
17.
|
Transactions with
related parties
|
|
Certain
officers and directors (and the companies with which they are associated)
are customers of, and have had banking transactions with, the Bank in the
ordinary course of the Bank’s business. In addition, the Bank
expects to continue to have such banking transactions in the
future. All loans, and commitments to loan, to such parties are
generally made on the same terms, including interest rates and collateral,
as those prevailing at the time for comparable transactions with other
persons. In the opinion of management, these transactions do
not involve more than the normal risk of collectibility or present any
other unfavorable features.
|
2009
|
2008
|
|||||||
Balance
at beginning of year
|
$ | 1,161 | $ | 1,007 | ||||
Additions
|
443 | 2,139 | ||||||
Repayments
|
(526 | ) | (1,985 | ) | ||||
Balance
at end of year
|
$ | 1,078 | $ | 1,161 |
|
In
addition, during the years ended December 31, 2009, 2008 and 2007, the
Company incurred legal fees of approximately $446, $47 and $243 to firms
in which certain directors were
partners.
|
18.
|
Benefit
plans
|
|
401(k) profit sharing
plan
|
|
The
Company maintains a 401(k) profit sharing plan (the Plan) that covers
substantially all full-time employees. Employees may make
voluntary tax-deferred contributions to the Plan, and the Company’s
contributions related to the Plan are at the discretion of the Board, not
to exceed the amount deductible for federal income tax
purposes.
|
|
Other benefit
plans
|
19.
|
Stock-based
compensation plans
|
2008
|
2007
|
|||||||
Dividend
yield
|
3.9 | % | 1.3 | % | ||||
Expected
volatility
|
32.0 | % | 29.9 | % | ||||
Risk-free
interest rate
|
3.0 | % | 4.8 | % | ||||
Expected
option lives
|
7
years
|
6
years
|
2009
|
2008
|
2007
|
||||||||||||||||||||||
Weighted-
|
Weighted-
|
Weighted-
|
||||||||||||||||||||||
Options
|
Average
|
Options
|
average
|
Options
|
average
|
|||||||||||||||||||
out-
|
Exercise
|
out-
|
exercise
|
out-
|
exercise
|
|||||||||||||||||||
standing
|
price
|
standing
|
price
|
standing
|
price
|
|||||||||||||||||||
Balance
at beginning of year
|
1,089,091 | $ | 12.05 | 751,088 | $ | 13.34 | 770,095 | $ | 9.79 | |||||||||||||||
Granted
|
- | - | 400,130 | 10.06 | 139,962 | 27.09 | ||||||||||||||||||
Exercised
|
- | - | (11,505 | ) | 5.67 | (146,109 | ) | 6.86 | ||||||||||||||||
Cancelled
|
(98,473 | ) | 11.54 | (50,622 | ) | 15.39 | (12,860 | ) | 21.06 | |||||||||||||||
Balance
at end of year
|
990,618 | $ | 12.18 | 1,089,091 | $ | 12.05 | 751,088 | $ | 13.34 | |||||||||||||||
Exercisable
at end of year
|
526,656 | 520,645 | 488,203 |
Options
outstanding
|
Exercisable
options
|
|||||||||||||||||||
Weighted-
|
||||||||||||||||||||
Weighted-
|
average
|
Weighted-
|
||||||||||||||||||
average
|
remaining
|
average
|
||||||||||||||||||
Exercise
|
Number
of
|
exercise
|
contractual
|
Number
of
|
exercise
|
|||||||||||||||
price
range
|
options
|
price
|
life
(years)
|
options
|
price
|
|||||||||||||||
Under
$5.00
|
115,672 | $ | 4.64 | 0.6 | 115,672 | $ | 4.64 | |||||||||||||
$5.01-$8.00
|
84,416 | 6.73 | 2.0 | 82,416 | 6.89 | |||||||||||||||
$8.01-$12.00
|
466,252 | 9.81 | 6.6 | 140,737 | 9.07 | |||||||||||||||
$12.01-$16.00
|
154,174 | 13.64 | 4.4 | 147,485 | 13.57 | |||||||||||||||
$16.01-$22.00
|
50,532 | 20.35 | 6.0 | 38,471 | 20.23 | |||||||||||||||
$22.01-$30.12
|
119,572 | 27.22 | 7.1 | 1,875 | 24.48 | |||||||||||||||
990,618 | $ | 12.18 | 4.4 | 526,656 | $ | 9.89 |
Weighted-
|
||||||||
average grant
|
||||||||
Number of
|
date fair value
|
|||||||
shares
|
per share
|
|||||||
Nonvested
as of December 31, 2008
|
131,593 | $ | 17.70 | |||||
Granted
|
86,880 | 2.13 | ||||||
Vested
|
(86,739 | ) | 2.72 | |||||
Nonvested
as of December 31, 2009
|
131,734 | $ | 14.68 |
Weighted-
|
||||||||
average grant
|
||||||||
Number of
|
date fair value
|
|||||||
shares
|
per share
|
|||||||
Vested
as of December 31, 2008
|
2,971 | $ | 8.75 | |||||
Vested
shares granted
|
8,840 | 2.50 | ||||||
Vested
as of December 31, 2009
|
11,811 | $ | 4.07 |
20.
|
Fair value
measurements
|
|
·
|
Quoted prices in
active markets for identical assets (Level 1): Inputs that are
quoted unadjusted prices in active markets for identical assets that the
Company has the ability to access at the measurement date. An active
market for the asset is a market in which transactions for the asset or
liability occur with sufficient frequency and volume to provide pricing
information on an ongoing basis.
|
|
·
|
Significant other
observable inputs (Level 2): Inputs that reflect the assumptions
market participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the reporting
entity including quoted prices for similar assets or liabilities in active
markets, quoted prices for identical or similar assets or liabilities in
inactive markets, and inputs derived principally from, or corroborated by,
observable market data by correlation or other
means.
|
|
·
|
Significant
unobservable inputs (Level 3): Inputs that reflect the
reporting entity's own assumptions about the assumptions market
participants would use in pricing the asset or liability developed based
on the best information available in the circumstances.
|
Quoted Prices in
|
Significant
|
|||||||||||
Active Markets
|
Other
|
Significant
|
||||||||||
for Identical
|
Observable
|
Unobservable
|
||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||
2009
|
||||||||||||
Investment
securities available - for - sale
|
$ | - | $ | 133,755 | $ | - | ||||||
Total
recurring assets measured at fair value
|
$ | - | $ | 133,755 | $ | - | ||||||
2008
|
||||||||||||
Investment
securities available - for - sale
|
$ | - | $ | 107,480 | $ | - | ||||||
Total
recurring assets measured at fair value
|
$ | - | $ | 107,480 | $ | - |
Quoted Prices in
|
Significant
|
|||||||||||
Active Markets
|
Other
|
Significant
|
||||||||||
for Identical
|
Observable
|
Unobservable
|
||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||
(Restated)
|
||||||||||||
2009
|
||||||||||||
Impaired
loans with specific valuation allowances
|
$ | - | $ | - | $ | 114,039 | ||||||
Other
real estate owned
|
- | 28,860 | ||||||||||
$ | - | $ | - | $ | 142,899 | |||||||
2008
|
||||||||||||
Impaired
loans with specific valuation allowances
|
$ | - | $ | - | $ | 120,468 | ||||||
Other
real estate owned
|
- | 52,727 | ||||||||||
$ | - | $ | - | $ | 173,195 |
|
Cash and cash
equivalents: The carrying amount approximates the
estimated fair value of these
instruments.
|
|
Loans: The
estimated fair value of loans is calculated by discounting the contractual
cash flows of the loans using December 31, 2009 and 2008 origination
rates. The resulting amounts are adjusted to estimate the effect of
changes in the credit quality of borrowers since the loans were
originated. Fair values for impaired loans are estimated using a
discounted cash flow analysis or the underlying collateral
values.
|
|
BOLI: The
carrying amount approximates the estimated fair value of these
instruments.
|
|
OREO: See
above description.
|
|
Deposits: The
estimated fair value of demand deposits, consisting of checking, interest
bearing demand and savings deposit accounts, is represented by the amounts
payable on demand. At the reporting date, the estimated fair
value of time deposits is calculated by discounting the scheduled cash
flows using the December 31, 2009 and 2008 rates offered on those
instruments.
|
|
Junior subordinated
debentures, other borrowings and TLGP senior unsecured
debt: The fair value of the Bank’s junior subordinated
debentures, other borrowings (including federal funds purchased) and TLGP
senior unsecured debt are estimated using discounted cash flow analyses
based on the Bank’s December 31, 2009 and 2008 incremental borrowing rates
for similar types of borrowing arrangements. However, as of
December 31, 2009, the estimated fair value of the Bank’s junior
subordinated debentures has been adjusted to reflect the possible
negotiated exchange of such debentures for
cash.
|
|
Customer repurchase
agreements: The carrying value approximates the estimated fair
value.
|
|
Loan commitments and
standby letters of credit: The majority of the Bank’s
commitments to extend credit have variable interest rates and “escape”
clauses if the customer’s credit quality deteriorates. Therefore, the fair
values of these items are not significant and are not included in the
following table.
|
December 31, 2009
|
December 31, 2008
|
||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
||||||||||
value
|
fair value
|
value
|
fair value
|
||||||||||
Financial
assets:
|
(Restated)
|
(Restated)
|
|||||||||||
Cash
and cash equivalents
|
$ | 359,322 | $ | 359,322 | $ | 48,946 | $ | 48,946 | |||||
Investment
securities:
|
|||||||||||||
Available-for-sale
|
133,755 | 133,755 | 107,480 | 107,480 | |||||||||
Held-to-maturity
|
2,008 | 2,143 | 2,211 | 2,247 | |||||||||
FHLB
stock
|
10,472 | 10,472 | 10,472 | 10,472 | |||||||||
Loans,
net
|
1,489,090 | 1,483,232 | 1,909,018 | 1,950,602 | |||||||||
BOLI
|
33,635 | 33,635 | 33,568 | 33,568 | |||||||||
OREO
|
28,860 | 28,860 | 52,727 | 52,727 | |||||||||
Financial
liabilities:
|
|||||||||||||
Deposits
|
1,815,348 | 1,819,103 | 1,794,611 | 1,795,004 | |||||||||
Junior
subordinated debentures, other borrowings, and TLGP senior unsecured
debt
|
304,765 | 256,814 | 317,533 | 320,796 | |||||||||
Customer
repurchase agreements
|
- | - | 9,871 | 9,867 |
21.
|
Regulatory
matters
|
Regulatory minimum
|
||||||||||||||||||||||||
Regulatory minimum to
|
to be "well capitalized"
|
|||||||||||||||||||||||
be "adequately
|
under prompt corrective
|
|||||||||||||||||||||||
Actual
|
capitalized"
|
action provisions
|
||||||||||||||||||||||
Capital
|
Capital
|
Capital
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Restated)
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||||||||||||||
December
31, 2009:
|
||||||||||||||||||||||||
Tier
1 leverage
|
||||||||||||||||||||||||
(to
average assets)
|
$ | 24,637 | 1.1 | % | $ | 88,563 | 4.0 | % | $ | 110,704 | 5.0 | % | ||||||||||||
Tier
1 risked
|
||||||||||||||||||||||||
(to
risk-weighted assets)
|
24,637 | 1.5 | 66,754 | 4.0 | 100,132 | 6.0 | ||||||||||||||||||
Total
capital
|
||||||||||||||||||||||||
(to
risk-weighted assets)
|
49,274 | 3.0 | 133,509 | 8.0 | 166,886 | 10.0 | ||||||||||||||||||
December
31, 2008:
|
||||||||||||||||||||||||
Tier
1 leverage
|
||||||||||||||||||||||||
(to
average assets)
|
$ | 196,707 | 8.2 | % | $ | 96,127 | 4.0 | % | $ | 120,159 | 5.0 | % | ||||||||||||
Tier
1 capital
|
||||||||||||||||||||||||
(to
risk-weighted assets)
|
196,707 | 8.9 | 87,968 | 4.0 | 131,951 | 6.0 | ||||||||||||||||||
Total
capital
|
||||||||||||||||||||||||
(to
risk-weighted assets)
|
224,701 | 10.2 | 175,935 | 8.0 | 219,919 | 10.0 |
Regulatory
minimum
|
||||||||||||||||||||||||
Regulatory
minimum to
|
to
be "well capitalized"
|
|||||||||||||||||||||||
be
"adequately
|
under
prompt
|
|||||||||||||||||||||||
Actual
|
capitalized"
|
corrective
action
provisions
|
||||||||||||||||||||||
Capital
|
Capital
|
Capital
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(Restated)
|
(Restated)
|
(Restated)
|
(Restated)
|
|||||||||||||||||||||
December
31, 2009:
|
||||||||||||||||||||||||
Tier
1 leverage
|
||||||||||||||||||||||||
(to
average assets)
|
$ | 82,847 | 3.8 | % | $ | 88,629 | 4.0 | % | $ | 110,787 | 5.0 | % | ||||||||||||
Tier
1 capital
|
||||||||||||||||||||||||
(to
risk-weighted assets)
|
82,847 | 5.0 | 66,664 | 4.0 | 99,996 | 6.0 | ||||||||||||||||||
Total
capital
|
||||||||||||||||||||||||
(to
risk-weighted assets)
|
104,159 | 6.3 | 133,328 | 8.0 | 166,660 | 10.0 | ||||||||||||||||||
December
31, 2008:
|
||||||||||||||||||||||||
Tier
1 leverage
|
||||||||||||||||||||||||
(to
average assets)
|
$ | 194,051 | 8.1 | % | $ | 95,998 | 4.0 | % | $ | 119,997 | 5.0 | % | ||||||||||||
Tier
1 capital
|
||||||||||||||||||||||||
(to
risk-weighted assets)
|
194,051 | 8.8 | 87,878 | 4.0 | 131,816 | 6.0 | ||||||||||||||||||
Total
capital
|
||||||||||||||||||||||||
(to
risk-weighted assets)
|
221,772 | 10.1 | 175,755 | 8.0 | 219,694 | 10.0 |
22.
|
Parent company
financial information
|
|
Condensed
financial information for Bancorp (Parent company only) is presented as
follows:
|
December
31,
|
||||||||
2009
|
2008
|
|||||||
(Restated)
|
||||||||
Assets:
|
|
|||||||
Cash
and cash equivalents
|
$ | 2,663 | $ | 2,697 | ||||
Investment
in subsidiary
|
88,750 | 199,080 | ||||||
Other
assets
|
2,223 | 2,216 | ||||||
Total
assets
|
$ | 93,636 | $ | 203,993 | ||||
Liabilities
and stockholders' equity:
|
||||||||
Junior
subordinated debentures
|
$ | 68,558 | $ | 68,558 | ||||
Other
liabilities
|
1,760 | 196 | ||||||
Stockholders'
equity
|
23,318 | 135,239 | ||||||
Total
liabilities and stockholders' equity
|
$ | 93,636 | $ | 203,993 |
Years
ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(Restated)
|
||||||||||||
Income:
|
|
|||||||||||
Interest
and dividend income
|
$ | 5 | $ | 18 | $ | 38 | ||||||
Gains
on sales of investment securities available-for-sale
|
- | 115 | 260 | |||||||||
Total
income
|
5 | 133 | 298 | |||||||||
Expenses:
|
||||||||||||
Administrative
|
1,569 | 1,945 | 2,001 | |||||||||
Interest
|
2,287 | 3,466 | 4,679 | |||||||||
Other
|
538 | 621 | 431 | |||||||||
Total
expenses
|
4,394 | 6,032 | 7,111 | |||||||||
Net
loss before credit for income taxes, dividends from the Bank and equity in
undistributed net earnings (losses) of subsidary
|
(4,389 | ) | (5,899 | ) | (6,813 | ) | ||||||
Credit
for income taxes
|
1,669 | 2,283 | 2,377 | |||||||||
Net
loss before dividends from the Bank and equity in undistributed net
earnings (losses) of subsidiary
|
(2,720 | ) | (3,616 | ) | (4,436 | ) | ||||||
Dividends
from the Bank
|
- | 6,900 | 20,200 | |||||||||
Equity
in undistributed net earnings (loss) of subsidiary
|
(112,109 | ) | (137,850 | ) | 14,215 | |||||||
Net
income (loss)
|
$ | (114,829 | ) | $ | (134,566 | ) | $ | 29,979 |
2009
|
2008
|
2007
|
||||||||||
(Restated)
|
||||||||||||
Cash
flows from operating activities:
|
|
|||||||||||
Net
income (loss)
|
$ | (114,829 | ) | $ | (134,566 | ) | $ | 29,979 | ||||
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities:
|
||||||||||||
Dividends
from the Bank
|
- | 6,900 | 20,200 | |||||||||
Equity
in undistributed net (earnings) loss of subsidiary
|
112,109 | 130,950 | (34,415 | ) | ||||||||
Gains
on sales of investment securities available-for-sale
|
- | (115 | ) | (260 | ) | |||||||
Stock-based
compensation expense
|
1,258 | 1,566 | 1,632 | |||||||||
Increase
in other assets
|
(6 | ) | (4 | ) | (5 | ) | ||||||
(Decrease)
increase in other liabilities
|
1,564 | (49 | ) | 12 | ||||||||
Net
cash provided by operating activities
|
96 | 4,682 | 17,143 | |||||||||
Cash
flows provided by investing activities:
|
||||||||||||
Proceeds
from sales of investment securities available-for-sale
|
- | 425 | 525 | |||||||||
Cash
flows from financing activities:
|
||||||||||||
Cash
dividends paid
|
- | (6,158 | ) | (10,491 | ) | |||||||
Repurchases
of common stock
|
- | - | (9,205 | ) | ||||||||
Proceeds
from stock options exercised
|
- | 67 | 1,979 | |||||||||
Tax
benefit (cost) from non-qualified stock options exercised
|
- | (297 | ) | 548 | ||||||||
Income
taxes withheld on vested restricted stock
|
(130 | ) | - | - | ||||||||
Net
cash used by financing activities
|
(130 | ) | (6,388 | ) | (17,169 | ) | ||||||
Net
(decrease) increase in cash and cash equivalents
|
(34 | ) | (1,281 | ) | 499 | |||||||
Cash
and cash equivalents at beginning of year
|
2,697 | 3,978 | 3,479 | |||||||||
Cash
and cash equivalents at end of year
|
$ | 2,663 | $ | 2,697 | $ | 3,978 |
23.
|
Restatement of
consolidated financial
statements
|
As of and for the year ended December 31, 2009
|
||||||||||||
As Previously
|
||||||||||||
Reported
|
Adjustment
|
Restated
|
||||||||||
Consolidated
balance sheet
|
||||||||||||
Reserve
for loan losses
|
$ | 37,586 | $ | 21,000 | $ | 58,586 | ||||||
Net
loans
|
1,510,090 | (21,000 | ) | 1,489,090 | ||||||||
Other
real estate owned
|
29,609 | (749 | ) | 28,860 | ||||||||
Total
assets
|
2,193,877 | (21,749 | ) | 2,172,128 | ||||||||
Accumulated
deficit
|
(116,204 | ) | (21,749 | ) | (137,953 | ) | ||||||
Total
stockholders' equity
|
45,067 | (21,749 | ) | 23,318 | ||||||||
Total
liabilities and stockholders' equity
|
2,193,877 | (21,749 | ) | 2,172,128 | ||||||||
Consolidated
statement of operations
|
||||||||||||
Loan
loss provision
|
$ | 113,000 | $ | 21,000 | $ | 134,000 | ||||||
Net
interest loss after loan loss provision
|
(40,324 | ) | (21,000 | ) | (61,324 | ) | ||||||
OREO
expense
|
22,391 | 749 | 23,140 | |||||||||
Non-interest
expense
|
93,967 | 749 | 94,716 | |||||||||
Loss
before income taxes
|
(112,665 | ) | (21,749 | ) | (134,414 | ) | ||||||
Net
loss
|
(93,080 | ) | (21,749 | ) | (114,829 | ) | ||||||
Per
share data:
|
||||||||||||
Basic
loss per common share
|
$ | (3.32 | ) | $ | (0.78 | ) | $ | (4.10 | ) | |||
Diluted
loss per common share
|
(3.32 | ) | (0.78 | ) | (4.10 | ) | ||||||
Consolidated
statement of changes in stockholders' equity
|
||||||||||||
Net
loss
|
$ | (93,080 | ) | $ | (21,749 | ) | $ | (114,829 | ) | |||
Accumulated
deficit
|
(116,204 | ) | (21,749 | ) | (137,953 | ) | ||||||
Consolidated
statement of cash flows:
|
||||||||||||
Net
loss
|
$ | (93,080 | ) | $ | (21,749 | ) | $ | (114,829 | ) | |||
Loan
loss provision
|
113,000 | 21,000 | 134,000 | |||||||||
Writedown
of OREO
|
17,232 | 749 | 17,981 | |||||||||
Net
cash provided by operating activities
|
30,576 | 17,232 | 47,808 | |||||||||
Net
cash provided by investing activities
|
281,832 | (17,232 | ) | 264,600 |
ITEM 9.
|
CHANGES IN AND
DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
Proposal
1.
|
To
approve an amendment to our Articles of Incorporation, as amended, to
increase the number of authorized shares of the Company’s Common Stock
from 45,000,000 to 300,000,000:
|
Votes
|
Votes
|
Votes
|
||||||
"FOR"
|
"AGAINST"
|
"ABSTAIN"
|
||||||
23,792,834
|
825,493 | 11,933 |
Proposal
2.
|
To
approve the issuance of up to $65 million of the Company’s Common Stock to
investors in Private Offerings, which will result in such investors owning
greater than 20% of the outstanding voting securities of the
Company:
|
Votes
|
Votes
|
Votes
|
||||||
"FOR"
|
"AGAINST"
|
"ABSTAIN"
|
||||||
16,449,360
|
590,248 | 121,871 |
Proposal
3.
|
To
approve an amendment to our Articles of Incorporation, as amended, to
effect a one for ten reverse stock split of our Common Stock and payment
of cash for resulting fractional
shares:
|
Votes
|
Votes
|
Votes
|
||||||
"FOR"
|
"AGAINST"
|
"ABSTAIN"
|
||||||
23,177,966
|
1,453,150
|
106,542
|
ITEM
12.
|
SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCK HOLDER
MATTERS
|
|
(a)
|
The
following documents are filed as part of this Annual Report on Form
10-K:
|
|
(1)
|
The
consolidated financial statements required in this Annual Report are
listed in the accompanying Index to Consolidated Financial Statements on
page 64.
|
|
(2)
|
All
consolidated financial statement schedules are omitted because they are
not applicable or not required, or because the required information is
included in the consolidated financial statements or the notes
thereto
|
(3)
|
Exhibits. Exhibits
filed with this Annual Report on Form 10-K or incorporated by reference
from other filing are as follows:
|
3.1
|
Articles of Incorporation of
Cascade Bancorp, as amended. Filed as exhibit 3.1 to
registrant’s Quarterly Report on Form 10-Q, as filed with the Securities
and Exchange Commission filed June 30, 2997 and incorporated herein by
reference.
|
|
3.2
|
Bylaws of Cascade Bancorp, as
amended and restated. 10.1 Registrant’s 1994 Incentive
Stock Option Plan. Filed as an exhibit to registrant’s
Registration Statement on Form 10-SB, as filed with the Securities and
Exchange Commission in January 1994, and incorporated herein by
reference.
|
|
10.2
|
Incentive Stock Option Plan
Letter Agreement. Entered into between registrant and
certain employees pursuant to registrant’s 1994 Incentive Stock Option
Plan. Filed as an exhibit to registrant’s Registration Statement on Form
10-SB, as filed with the Securities and Exchange Commission in January
1994, and incorporated herein by reference.
|
|
10.3
|
Incentive Stock Option Plan
Letter Agreement. Entered into between registrant and
certain employees pursuant to registrant’s 1994 Incentive Stock Option
Plan. Filed as an exhibit to registrant’s Registration Statement on Form
10-SB, as filed with the Securities and Exchange Commission in January
1994, and incorporated herein by reference.
|
|
10.4
|
Deferred Compensation
Plans. Established for the Board, certain key executives
and managers during the fourth quarter ended December 31, 1995. Filed as
exhibit 10.5 to registrant’s Form 10-KSB, as filed with the Securities and
Exchange Commission on March 28, 1996 (File No. 000-23322), and
incorporated herein by reference.
|
|
10.5
|
Executive Employment Agreement
between Cascade Bancorp, Bank of the Cascades, and Patricia L. Moss,
entered into February 18, 2008. Filed as an exhibit to
the registrant’s filing on Form 8-K Current Report, as filed with the
Securities and Exchange Commission on February 19, 2008, and incorporated
herein by reference.
|
|
10.6
|
Executive Employment Agreement
between Cascade Bancorp, Bank of the Cascades, and Gregory D. Newton
entered into February 18, 2008. Filed as an exhibit to
the registrant’s filing on Form 8-K Current Report, as filed with the
Securities and Exchange Commission on February 19, 2008, and incorporated
herein by reference.
|
|
10.7
|
Executive Employment Agreement
between Cascade Bancorp, Bank of the Cascades, and Peggy L. Biss entered
into February 18, 2008. Filed as an exhibit to the
registrant’s filing on Form 8-K Current Report, as filed with the
Securities and Exchange Commission on February 19, 2008, and incorporated
herein by reference.
|
|
10.8
|
Executive Employment Agreement
between Cascade Bancorp, Bank of the Cascades, and Frank R. Weis entered
into February 18, 2008. Filed as an exhibit to the
registrant’s filing on Form 8-K Current Report, as filed with the
Securities and Exchange Commission on February 19, 2008, and incorporated
herein by reference.
|
|
10.9
|
Agreement, together with Order
to Cease and Desist dated August 27, 2009. The Order to
Cease and Desist was filed as exhibit 99.2 to the registrant’s filing on
Form 8-K Current Report, as filed with the Securities and Exchange
Commission on September 2, 2009, and incorporated herein by
reference.
|
10.10
|
Shareholders Agreement dated
December 27,2005, by and among Cascade Bancorp, David F. Bolger and
Two-forth Associates. Filed as exhibit 4 to Schedule 13D
filed by Mr. David Bolger and Two-Forty Associates on April 27, 2006 and
incorporated herein by reference.
|
|
10.6
|
First
Amendment to the Securities Purchase Agreement, dated February 16, 2010,
between the Company and David F. Bolger, Two-Forty Associates, and The
David F. Bolger 2008 Grantor Retained Annuity Trust. Filed as
an exhibit to the registrants Form 8-K filed with the Securities and
Exchange Commission on February 19, 2010).
|
|
10.7
|
First
Amendment to the Securities Purchase Agreement dated February16, 2010,
between the Company and BOTC Holdings LLC incorporated by reference to
exhibit 10.2 of the registrants filing on Form 8-K filed with the
Securities and Exchange Commission on February 19,
2010).
|
|
11.1
|
Earnings
per Share Computation. The information called for by this item is located
on page 92 of this Form 10-K/A Annual Report, and is incorporated herein
by reference.
|
|
21.1
|
Subsidiaries
of registrant.
|
|
23.1
|
Consent
of Symonds, Evans & Company, P.C., Independent
Accountants.
|
|
31.1
|
Certification
of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule
15d-4(a).
|
|
31.2
|
Certification
of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule
15d-4(a).
|
|
32.0
|
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to Rule
13a-14(b) or Rule 15d-14(b) and Section
906 of the Sarbanes-Oxley Act of
2002.
|
CASCADE
BANCORP
|
CASCADE
BANCORP
|
|
/s/ Patricia L. Moss
|
/s/ Gregory D. Newton
|
|
Patricia
L. Moss
|
Gregory
D. Newton
|
|
President/Chief
Executive Officer
|
Executive
Vice President/Chief Financial Officer
|
|
Date: March 12,
2010
|
Date: March 12,
2010
|
/s/ Jerol E. Andres
|
March 12, 2010
|
||
Jerol
E. Andres, Director/Vice Chairman
|
Date
|
||
/s/ Gary L. Hoffman
|
March 12, 2010
|
||
Gary
L. Hoffman, Director/Chairman
|
Date
|
||
/s/ Henry H. Hewitt
|
March 12, 2010
|
||
Henry
H. Hewitt, Director
|
Date
|
||
/s/ Judith A. Johansen
|
March 12, 2010
|
||
Judith
A. Johansen, Director
|
Date
|
||
/s/ Clarence Jones
|
March 12, 2010
|
||
Clarence
Jones, Director
|
Date
|
||
/s/ Patricia L. Moss
|
March 12, 2010
|
||
Patricia
L. Moss, Director/President & CEO
|
Date
|
||
/s/ Ryan R. Patrick
|
March 12, 2010
|
||
Ryan
R. Patrick, Director
|
Date
|
||
/s/ James E. Petersen
|
March 12, 2010
|
||
James
E. Petersen, Director
|
Date
|