BEND, Ore., Aug. 14, 2012 /PRNewswire/ -- Cascade Bancorp (NASDAQ: CACB). On August 14, 2012, Cascade Bancorp filed its June 30, 2012 quarterly report on Form 10-Q with the Securities and Exchange Commission. For the second quarter of 2012 Cascade Bancorp recorded net income of $1.8 million. This compares to $1.1 million for the quarter ended March 31, 2012 and $2.0 million for the year ago quarter. Earnings in the year ago quarter were a result of tax credits recognized in that period.
Total loan balances outstanding at June 30, 2012 were $845 million as compared to $870 million at March 31, 2012. The decline is a result of continued payoffs and pay-downs within the loan portfolio. Total deposits at June 30, 2012 were $1.054 billion as compared to $1.093 billion at March 31, 2012. The decline in deposits was related to a planned reduction in certain premium priced municipal deposits. The net interest margin for the June 30, 2012 quarter was a solid 4.18%. Credit quality continued to improve with non-performing assets at 1.70% of assets as compared to the prior quarter level of 2.03%. The annualized rate of net charge-offs to loans was 2.70% for the second quarter as compared to the prior quarter of 0.48%. The higher rate of charge-offs were in part related to the Company's focused efforts to remediate the remaining loans classified as substandard in its portfolio. In addition, the reserve for loan losses as of June 30, 2012 was $38.2 million or 4.52% of gross loans as compared to $44.0 million or 5.04% at March 31, 2012.
Terry Zink, President and CEO of Cascade Bancorp commented, "I view our second quarter profit as evidence that prior actions to build capital and maintain strong loan loss reserves are taking hold. We continue to see improving core operating performance as we navigate through the credit environment. Our top priority is putting local deposits to work by making loans to our local business, mortgage, and consumer customers to help to revitalize the economies of the communities we serve."Ryan R. Patrick Named Chairman of the Board of Cascade Bancorp Cascade Bancorp President and Chief Executive Officer Terry Zink announced that Ryan R. Patrick has been named Chairman of the Board. Mr. Patrick has served as a director of the Company since 1998. During this time, he has served as chair of the Audit and Enterprise Risk Management and Trust Committees, and as Trustee of the Company's 401(k) Profit Sharing Plan. Mr. Patrick, a certified public accountant, is a partner in the firm of Patrick Casey & Co., LLP. Mr. Patrick and his wife Glenna reside in Bend, Oregon. Terry Zink commented, "On behalf of the Board of Directors, we are very pleased to welcome Ryan as Board Chair. Throughout his tenure on the Board he has combined unyielding commitment with exceptional financial understanding to embrace strategies focused on enhancing shareholder value. He was a valued advocate in the Bank's successful capital raise, and has now shifted his focus to strategic growth of the company." Zink continued, "In addition to his business and financial expertise, Ryan also has a deep rooted commitment to community banking and the Northwest communities served by Bank of the Cascades. We welcome his leadership and proven ability to serve in the best interests of our company and its shareholders." Mr. Patrick follows retiring Chairman Dr. Gary Hoffman. Dr. Hoffman served on the Bank's Board for 28 years, the past seven as Chairman. Dr. Hoffman served on the Audit and Enterprise Risk Management Committee and the Nominating and Governance Committee. Dr. Hoffman is a retired surgeon with Bend Memorial Clinic. Mr. Patrick commented, "It is an honor to follow in Dr. Hoffman's footsteps. His contribution to Bank of the Cascades is significant. Over the years and through several economic cycles, Dr. Hoffman maintained a steadfast focus on serving the shareholders of the company while also serving the customers, employees and communities of the Bank." Patrick continued, "I speak for the entire Board as I acknowledge and sincerely thank Dr. Hoffman for his service and ongoing legacy to Bank of the Cascades."