Dear Cascade Customers, Shareholders and Employees,
On July 21, 2010, Cascade announced our second quarter financial results which
included significant improvements in all credit quality metrics, with nonperforming
loans and assets declining by 28% and 11% respectively. In addition, total
deposits were up $10.7 million due to growth in retail CDs. While we are pleased
with the positive progress we made in these areas, we recognize that we need to
remain focused on working diligently to show continued improvement and a
return to profitability. Please see our press release for the complete results of
the quarter.
In addition, we also announced that Cascade recently entered into a consent
order with the FDIC to, among other things, increase capital levels and decrease
nonperforming assets. Although we recently finalized the consent order, as we
mentioned in our 1Q financial results, we maintain an active dialogue with the
FDIC and this order was expected. It affirms a strategic plan that Cascade
instituted months ago aimed at reducing nonperforming assets and
strengthening our capital position. Importantly, customers should expect no
change in service or product offerings from Cascade as a result of the consent
order. All customer deposits remain insured by the FDIC up to $250,000 per
account holder. Complete information on this is available on the FDIC’s website
at www.fdic.gov/deposit/deposits/insured/index.html.
As difficult as this recession has been, we believe this is also a time of
opportunity. To help us strengthen our capital ratios, we recently secured
approval from our shareholders to increase Cascade’s authorized common stock.
In doing so, the shareholders have enhanced our ability to raise capital and the
Board of Directors is currently considering the best approach for doing just that.
We believe our commitment to serving the needs of our community, along with
our plans to comply quickly with the consent order, will leave us well positioned
for growth when the economy improves. We are committed to being your truly
local community bank now and for many years in the future.
Please visit our website for updates in the future, and email me personally with
any questions you might have at cnelson@cascadebank.com.
Sincerely,
Carol K. Nelson,
President and CEO
source: www.cascadebank.com/docs/Q2_Carol_Nelson_Letter.pdf
stockcharts.com/c-sc/...mp;dy=0&i=p85701893023&r=3531" style="max-width:560px" />
