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All you need to know from Bank of the Cascades second-quarter earnings release today can be seen in the chart above (an updated version of yesterday’s “Chart of the Day, Part Deux”). The stock price fell more than 17% today as investors reacted to earnings that missed analyst estimates by a “huge margin.”

Here are a couple of pertinent highlights:

-Non-performing assets grew 1,252% from last year to $127 million (equal to almost half of the bank’s net equity).

-Total deposits fell 11.1% from the same quarter last year.

This is not quite what I would consider a surefire recipe for success. The bottom line is the bank is, along with the local real estate market, facing a “world of pain.” The real problem is that there’s no sign of relief in the near future – and investors know it.

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