EVERETT — Cascade Financial Corp. announced earnings today of $1.6 million during the last three months.
“Cascade posted a solid quarter, returning to profitability with record checking deposit growth, controlled operative costs and a stable net interest margin, in spite of the drag of nonperforming loans,” said Carol Nelson, chief executive and president of the Everett-based company, the parent firm of Cascade Bank.
Nelson said the company continues to deal with bad loans, but it managed to increase deposits and capital during the third financial quarter.
Nelson also announced that the bank had received a notice from the Federal Deposit Insurance Corp. that the regulator was concerned with its increased levels of nonperforming loans and its concentration in real estate loans.
The FDIC expects the bank to obtain permission before providing dividends to investors, notify it of management changes and take steps to preserve capital, Nelson said.
A number of banks in Snohomish County have received cease-and-desist orders from the FDIC, listing a number of steps they needed to take. Nelson said that’s not what Cascade received, describing it as an internal corrective action program.
She said the FDIC notice was based on its second-quarter results and that the bank has already taken action, such as cutting dividends and expenses and trying to add to its financial reserves.
Employee year-over-year compensation at the bank is down 11 percent, Nelson said.
She also noted that the bank’s new Edmonds branch, which opened in May, has been very successful, collecting $15 million in deposits in the first four months.
“It’s a pretty rough environment, and we feel very glad to be profitable,” Nelson said.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
