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.[youtube http://www.youtube.com/watch?v=7tgqYWQKBnw&hl=en&fs=1](Click for video)