Regulators lift order on Bank of the Cascades
Mar 07, 2013 (The Oregonian - McClatchy-Tribune Information Services via COMTEX) --
Regulators on Thursday lifted an order for Bank of the Cascades to improve its finances, signaling the end of a remarkable turnaround for an institution hit hard by the last recession.
Bend-based Cascade Bancorp, the bank's holding company, announced the terminated cease-and-desist order after markets closed. The Federal Deposit Insurance Corp and the Oregon Division of Finance and Corporate Securities imposed the order in August 2009 after the crash of the Central Oregon housing market sapped the bank's capital.
"They've done a great job of recapitalizing and taking care of their classified loans and reducing the troubled loans on their books," said David Tatman, administrator of the state finance division.
Cascade's stock, once hovering around $25 to $30 a share, plunged to 42 cents a share in July 2010.
Later that year, it got $177 million from outside investors. In 2011, the board appointed former Fifth Third Bank Chicago president Terry E. Zink to continue the turnaround.
The bank turned a profit last year, Zink said today in a press release. On Thursday, its stock on the Nasdaq Stock Market closed at $6.22, down two cents.
Five Oregon-based banks remain subject to state regulatory orders. First Federal Savings & Loan Association of McMinnville also remains under a 2011 agreement with The Office of Comptroller of the Currency to improve its finances.
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