SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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(MARK ONE) |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended: March 31, 2004 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
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Commission file number: 0-23322 |
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CASCADE BANCORP |
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(Exact name of Registrant as specified in its charter) |
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Oregon |
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93-1034484 |
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(State or other jurisdiction of |
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(I.R.S. Employer Identification No.) |
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1100 NW Wall Street |
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(Address of principal executive offices) |
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(541) 385-6205 |
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(Registrant’s telephone number, including area code) |
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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No o |
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 16,632,461 shares of no par value Common Stock as of April 30, 2004.
CASCADE BANCORP & SUBSIDIARY
FORM 10-Q
QUARTERLY REPORT
MARCH 31, 2004
INDEX
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Page |
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PART I: FINANCIAL INFORMATION |
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Item 1. |
Financial Statements (unaudited) |
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Condensed Consolidated Balance Sheets: |
3 |
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Condensed Consolidated Statements of Income: |
4 |
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Condensed Consolidated Statements of Changes in Stockholders’ Equity: |
5 |
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Condensed Consolidated Statements of Cash Flows: |
6 |
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Notes to Condensed Consolidated Financial Statements |
7 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
12 |
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Item 3. |
Quantitative and Qualitative Disclosures about Market Risk. |
19 |
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Item 4. |
Controls and Procedures. |
19 |
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PART II: OTHER INFORMATION |
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Item 6. |
Exhibits and Reports on Form 8-K |
20 |
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SIGNATURES |
21 |
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2
PART I
Item 1. FINANCIAL STATEMENTS
Cascade Bancorp & Subsidiary
Condensed Consolidated Balance Sheets
March 31, 2004 and December 31, 2003
(Unaudited)
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March 31, |
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December 31, |
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ASSETS |
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Cash and cash equivalents: |
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Cash and due from banks |
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$ |
30,897,814 |
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$ |
34,930,921 |
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Interest bearing deposits with Federal Home Loan Bank |
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23,518,784 |
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38,789,177 |
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Federal funds sold |
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17,050,000 |
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14,800,000 |
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Total cash and cash equivalents |
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71,466,598 |
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88,520,098 |
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Investment securities available-for-sale |
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32,046,299 |
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33,609,058 |
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Investment securities held-to-maturity |
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660,949 |
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661,686 |
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Federal Home Loan Bank stock |
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2,368,200 |
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2,295,600 |
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Loans, net |
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658,209,864 |
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577,801,194 |
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Premises and equipment, net |
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16,062,877 |
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13,828,138 |
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Accrued interest and other assets |
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30,473,277 |
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17,996,170 |
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Total assets |
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$ |
811,288,064 |
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$ |
734,711,944 |
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LIABILITIES & STOCKHOLDERS’ EQUITY |
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Liabilities: |
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Deposits: |
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Demand |
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$ |
268,986,479 |
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$ |
245,378,530 |
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Interest bearing demand |
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356,509,456 |
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332,792,532 |
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Savings |
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32,889,241 |
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28,715,391 |
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Time |
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54,941,979 |
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44,268,539 |
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Total deposits |
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713,327,155 |
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651,154,992 |
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Borrowings |
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13,815,680 |
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13,864,605 |
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Accrued interest and other liabilities |
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8,032,148 |
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7,936,653 |
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Total liabilities |
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735,174,983 |
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672,956,250 |
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Stockholders’ equity: |
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Common stock, no par value; 20,000,000 shares authorized; 16,615,852 issued and outstanding (15,776,593 in 2003) |
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31,071,786 |
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19,147,285 |
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Retained earnings |
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44,442,944 |
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42,100,708 |
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Unearned compensation on restricted stock |
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(249,480 |
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(280,665 |
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Accumulated other comprehensive income |
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847,831 |
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788,366 |
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Total stockholders’ equity |
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76,113,081 |
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61,755,694 |
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Total liabilities and stockholders’ equity |
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$ |
811,288,064 |
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$ |
734,711,944 |
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See accompanying notes.
3
Cascade Bancorp & Subsidiary
Condensed Consolidated Statements of Income
Three Months ended March 31, 2004 and 2003
(Unaudited)
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Three months ended |
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2004 |
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2003 |
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Interest income: |
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Interest and fees on loans |
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$ |
10,839,308 |
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$ |
9,464,847 |
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Taxable interest on investments |
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214,543 |
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321,739 |
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Nontaxable interest on investments |
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21,689 |
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9,599 |
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Interest on federal funds sold |
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42,383 |
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13,965 |
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Interest on interest bearing deposits with Federal Home Loan Bank |
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55,897 |
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158 |
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Dividends on Federal Home Loan Bank stock |
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21,496 |
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36,190 |
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Total interest income |
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11,195,316 |
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9,846,498 |
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Interest expense: |
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Deposits: |
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Interest bearing demand |
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726,131 |
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537,611 |
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Savings |
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27,206 |
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29,001 |
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Time |
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196,665 |
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269,920 |
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Borrowings |
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110,234 |
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167,943 |
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Total interest expense |
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1,060,236 |
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1,004,475 |
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Net interest income |
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10,135,080 |
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8,842,023 |
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Loan loss provision |
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650,000 |
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700,000 |
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Net interest income after loan loss provision |
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9,485,080 |
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8,142,023 |
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Noninterest income: |
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Service charges on deposit accounts |
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1,614,864 |
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1,352,089 |
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Mortgage loan origination and processing fees |
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381,936 |
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928,529 |
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Gains on sales of mortgage loans, net |
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220,318 |
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537,775 |
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Mortgage loan servicing fees (net of amortization of mortgage servicing rights and impairment, if any) |
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(30,827 |
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(644,744 |
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Gain on sale of investment securities available-for-sale |
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181,720 |
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— |
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Other income |
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761,762 |
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627,806 |
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Total noninterest income |
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3,129,773 |
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2,801,455 |
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Noninterest expense: |
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Salaries and employee benefits |
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4,278,329 |
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3,625,282 |
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Net occupancy and equipment |
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832,999 |
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640,112 |
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Other expenses |
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1,868,981 |
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1,452,441 |
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Total noninterest expense |
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6,980,309 |
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5,717,835 |
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Income before income taxes |
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5,634,544 |
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5,225,643 |
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Provision for income taxes |
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2,231,085 |
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1,994,447 |
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Net income |
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$ |
3,403,459 |
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$ |
3,231,196 |
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Basic earnings per common share |
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$ |
0.21 |
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$ |
0.21 |
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Diluted earnings per common share |
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$ |
0.20 |
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$ |
0.20 |
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See accompanying notes.
4
Cascade Bancorp & Subsidiary
Condensed Consolidated Statements of Changes in Stockholders’ Equity
Three Months Ended March 31, 2004 and 2003(Unaudited)
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Comprehensive |
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Common |
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Retained |
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Unearned |
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Accumulated |
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Total |
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Balance at December 31, 2002 |
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$ |
18,253,082 |
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$ |
32,172,221 |
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$ |
— |
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$ |
762,412 |
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$ |
51,187,715 |
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Comprehensive income: |
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Net income |
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$ |
3,231,196 |
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— |
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3,231,196 |
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— |
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— |
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3,231,196 |
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Other comprehensive income, net of tax: |
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Unrealized losses on securities available-for-sale |
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(102,931 |
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— |
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— |
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— |
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(102,931 |
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(102,931 |
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Comprehensive income |
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$ |
3,128,265 |
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Cash dividends paid |
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— |
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(1,004,066 |
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— |
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— |
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(1,004,066 |
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Stock options exercised (63,123 shares) |
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194,989 |
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— |
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— |
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— |
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194,989 |
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Balance at March 31, 2003 |
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$ |
18,448,071 |
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$ |
34,399,351 |
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$ |
— |
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$ |
659,481 |
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$ |
53,506,903 |
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