Cascade Bancorp (CACB) Tops Q2 EPS by 1c

Cascade Bancorp (NASDAQ: CACB) reported Q2 EPS of $0.07, $0.01 better than the analyst estimate of $0.06.

• Net income for the second quarter of 2016 was $4.8 million, or $0.07 per share, compared to $1.9 million, or $0.03 per share, for the first quarter of 2016 ("linked quarter") which included non-recurring net expense items of $3.1 million (pretax), or $0.03 per share (after tax).
• Net interest income was $22.2 million for the current and linked quarter, up 7.6% from the linked quarter after adjusting for $1.5 million in non-recurring interest on called securities from the prior quarter1. Stronger interest income is a result of growth in earning assets funded by the deposits of the 15 branches recently acquired from Bank of America (the "branch acquisition").
• Non-interest income was $7.8 million, up $2.3 million, or 42.4%, compared to the linked quarter, mainly due to increased service fees and card related revenues from the recently acquired branches.
• Non-interest expense was $22.3 million, down $2.2 million from the linked quarter which included $2.3 million of one-time costs related to the branch acquisition and $1.3 million related to branch consolidations.
• The cost of funds remained stable at 0.08% for the quarter, which includes $469.9 million in deposits assumed in the branch acquisition.
• At June 30, 2016, gross loans were $1.9 billion compared to $1.8 billion as of March 31, 2016. Second quarter organic loan growth2 was $75.0 million, or 20.6% annualized.
• At June 30, 2016, total deposits were $2.6 billion, consistent with the linked quarter, with 97.8% retention of the deposits assumed in the Bank of America branch acquisition.
• The net interest margin ("NIM") was 3.40% for the second quarter of 2016, with approximately 75% deployment of the deposits assumed in the branch acquisition into securities and wholesale loans at a targeted yield of 2.25%.
• Net loan recoveries for the second quarter were $0.2 million. The allowance for loan losses ("ALLL") at quarter end was 1.30% of gross loans. No provision or credit for loan losses was recorded in the current quarter. Credit metrics improved with lower classified loans.
• At June 30, 2016, stockholders' equity was $345.3 million, with book value per share of $4.71 and tangible book value per share3 of $3.41.
• Return on average assets and return on average tangible assets4 in the current quarter was 0.65% and 0.68%, respectively, compared to 0.30% and 0.31% in the linked quarter, respectively.
• Return on average stockholders' equity and return on average tangible stockholders' equity5 in the current quarter was 5.65% and 7.85%, respectively, compared to 2.30% and 3.07% in the linked quarter, respectively

For earnings history and earnings-related data on Cascade Bancorp (CACB) click here.

You May Also Be Interested In

• TJX stock drops as profit outlook falls short of analyst estimates
• TJX Cos. (TJX) Tops Q2 EPS by 3c, Beats on Revenue; Offers FY27 EPS Guidance
• Target raises full-year sales forecast amid ongoing turnaround drive