By Mike Benbow
Herald Writer
EVERETT — Cascade Financial Corp. reported a dramatic 46 percent increase in quarterly profits Monday, a showing its chairman says is the "start of a whole new era" for Snohomish County’s oldest banking firm.
The company’s ongoing transformation from a thrift institution to a commercial bank and its recent hiring of a new management team are the keys to its newfound profitability, said chairman Frank McCord.
McCord noted that the company, which operates Cascade Bank, hired a new chief financial officer, Lars Johnson, a little more than a year ago and also hired a new president, Carol K. Nelson, in February.
"This is just chapter one, verse one," McCord said of the company’s profitability for the three months ending Sept. 30. "The board’s excited, and I’m excited."
For the past quarter, the first of the company’s 2002 fiscal year, Cascade reported:
Nelson said a sharp focus on the bank’s business plan, which includes increasing emphasis on business and construction loans, has been key to the bank’s improved profitability.
The large number of people refinancing their home loans because of low rates also helped boost fee income significantly, she said.
"We believe our business plan is firmly in place and notwithstanding further significant deterioration in the local economy, we continue to be comfortable with our growth projections," she said.
Nelson, a former executive with Bank of America, reported Cascade’s profits on a day when her former employer reported a 50 percent decline in profitability and banks generally reported problems stemming from a worsening economy.
"The after-effects of the Sept. 11 attack are only just beginning to emerge in our local economy," Nelson said. "It is too early to tell how the increased military activity and the changes in the aerospace industry will impact our market. Early reactions reflect a slight moderation in demand for new construction projects, accelerating refinance activity and sold performance of the existing loan portfolio."
McCord said securities laws prevent him from issuing any assurances about quarterly profits, but he said the long-term future of the bank looks very sound based on its new direction, new staff and the county’s potential for growth.
"We’ve been here 85 years, and we’re not a new bank, but in some respects, we are," he said. "The future is very promising for us. What I think you’re seeing here is the first indication of that."
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