Unassociated Document
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Current
Report Pursuant to Section 13 or 15(d) of The Securities Act of
1934
Date of
Report (Date of earliest event reported): August 27, 2009
CASCADE
BANCORP
(Exact
name of registrant as specified in its charter)
Oregon
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0-23322
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93-1034484
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(State
or other jurisdiction of
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(Commission
File Number)
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(IRS
Employer
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incorporation)
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Identification
No.)
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1100
NW Wall Street
Bend,
Oregon 97701
(Address
of principal executive offices (Zip Code)
(541)
385-6205
Registrant’s
telephone number, including area code:
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Item
1.01. Entry
into a Material Definitive Agreement.
On August 27, 2009 Bank of the Cascades
(the “Bank”), a wholly owned subsidiary of bank holding company Cascade Bancorp
(NASDAQ: CACB) (“Cascade”), entered into an agreement with the Federal Deposit
Insurance Corporation (“FDIC”), its principal federal banking regulator, and the
Oregon Division of Finance and Corporate Securities (“DFCS”) which requires the
Bank to take certain measures to improve its safety and soundness. A copy of the
press release issued by Cascade relating to the agreement is attached as Exhibit
99.1 to this Current Report on Form 8-K.
In connection with this agreement, the
Bank stipulated to the issuance by the FDIC and the DFCS of a cease-and-desist order
against the Bank based on certain findings from an examination of the Bank
concluded in February 2009 based upon financial and lending data measured as of
December 31, 2008. A copy of the Order to Cease and Desist is attached as
Exhibit 99.2 to this Current Report on Form 8-K. In entering into the
stipulation and consenting to entry of the order, the Bank did not concede the
findings or admit to any of the assertions therein.
Under the agreement, the Bank agreed to
certain measures to improve its capital position, maintain liquidity ratios,
reduce its level of non-performing assets, reduce its loan concentrations in
certain portfolios, improve management practices and to assure that its
allowance for loan losses is maintained at an appropriate level.
Among the corrective actions required
are for the Bank to develop and adopt a plan to maintain the minimum risk-based
capital requirements for a “well capitalized” bank, including a total risk-based
capital ratio of at least 10%. In addition, the Bank must retain qualified
management and must notify the FDIC and the DFCS in writing when it proposes to
add any individual to its board of directors or to employ any new senior
executive officer. Under the regulatory order the Bank’s board of directors must
also increase its participation in the affairs of the Bank, assuming full
responsibility for the approval of sound policies and objectives and for the
supervision of all the Bank’s activities.
The regulatory order further requires
the Bank to ensure the level of the ALLL is maintained at appropriate levels to
safeguard the book value of the Bank’s loans and leases, and to reduce the
amount of non-performing loans. The Bank also must adopt and
implement plans to reduce delinquent loans and reduce loans and other extensions
of credit to borrowers in the troubled commercial real estate market sector. The
regulatory order also requires the Bank to develop a written three-year
strategic plan, a plan for improving and sustaining earnings, and a plan to
preserve liquidity.
The order restricts the Bank from
taking certain actions without the consent of the FDIC and the DFCS, including
paying cash dividends, and from extending additional credit to certain types of
borrowers.
Forward Looking
Statements.
This Current Report on Form 8-K
contains forward-looking statements about Cascade Bancorp’s plans and
anticipated results of operations and financial condition. These statements
relate primarily, but are not limited, to statements about management’s present
plans and intentions to address the obligations we have assumed by entering into
the cease-and-desist order, and our expectations of success in those endeavors.
Additional forward-looking statements include plans and expectations about our
strategy, growth, and deployment of resources, and expectations for future
financial performance. Readers can sometimes identify forward-looking statements
by the use of prospective language and context, including words like “may”,
“will”, “should”, “expect”, “anticipate”, “estimate”, “continue”, “plans”,
“intends”, or other similar terminology. Because forward-looking statements are,
in part, an attempt to project future events and explain management’s current
plans and expectations, they are subject to various risks and uncertainties that
could cause our actions and our financial and operational results to differ
materially from those set forth in such statements. These risks and
uncertainties include, without limitation, our ability to increase our
regulatory capital to required levels and to maintain those levels during the
pendency of the regulatory order; our eligibility to participate, and decisions
about whether we will participate, in current and future capital assistance and
troubled-asset relief programs; our ability to estimate accurately the potential
for losses inherent in our loan portfolio; our sensitivity to local and regional
economic and other factors that affect the collectability of our loans and the
value of collateral underlying our secured loans; our ability to satisfy the
terms and conditions of the regulatory order and to satisfy applicable banking
laws and regulations; our ability to maintain a satisfactory and economically
viable net interest margin during times of rapidly and significantly fluctuating
interest rates; and our ability to attract and retain qualified, effective
management, and some of the other, risks and uncertainties that we have in the
past, or that we may from time to time in the future, detail in our filings with
the Securities and Exchange Commission ("SEC"). Information presented in this
report is accurate as of the date the report was filed with the SEC, and we
cannot undertake to update our forward looking statements or the factors that
may cause us to deviate from them, except as required by law.
Item
9.01. Financial Statements and
Exhibits
99.1
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Press
Release dated August 31, 2009
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99.2
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Order
to Cease and Desist dated August 27,
2009
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this Report to be signed on its behalf by the undersigned hereunto
duly authorized.
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CASCADE
BANCORP
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By:
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/s/ Patricia
L. Moss |
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Patricia
L. Moss |
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Chief
Executive Officer
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