Cascade Bancorp pre-announces bad earnings

ADDENDUM:

CACB hits $11.97, DOWN 10% in 2hrs

Form 8-K for CASCADE BANCORP

4-Jan-2008

Material Impairments, Financial Statements and Exhibits


Item 2.06 Material Impairments

On December 28, 2007, management determined that there was an adverse development with respect to certain loans in the Banks loan portfolio. Accordingly, on January 3, 2008, Cascade Bancorp pre-announced it expects to record a provision for credit losses of approximately $7.5 million (pre-tax) for the fourth quarter of 2007 to increase the Company's level of reserves primarily related to its portfolio of residential land acquisition and development (A&D) loans and to record approximately $3.8 million in net charge-offs, a majority of which is against loans affected by the real estate downturn. With these adjustments, the Company estimates fourth quarter 2007 net income at approximately $5.4 million or $0.19 per diluted share, and full year 2007 net income at approximately $35.2 million or $1.23 per diluted share. In addition, Cascade also pre-announced higher non performing assets and a compression of its net interest margin.

http://biz.yahoo.com/e/080104/cacb8-k.html

That's -50% in 3 months.

Sorry Patty Moss, get your resume ready, you & CACB go on the RIP board.