Cascade Financial sees up to $21M loss - Puget Sound Business Journal (Seattle):

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Everett, Wash.-based Cascade Financial, the parent company of , said it expects to take a $15 millioh provision against bad loans among the highest quarterl y provisions inthe company’sa recent history, said Lars Johnson, chiefr financial officer. Its total provision for bad loanswas $25 millionb at the end of March. with 22 branches acrosse the region, also said it expects to take a chargweof $12 million related to its 2005 purchase of Issaquajh Bank. Second quarter results are dueJuly 27.
Like many Pugeyt Sound region banks, Cascade is struggling with construction loans that have gone bad as developeres default amid thehousing market’s Cascade has not released its anticipatee number of problem loans for the second quarter, but they “will be Johnson said. In the first the bank’s nonperforming assets one measure of bad loans were $59.7 million, or 3.6 percent of total assets. That number includes $9.1 millioh in property the bank has taken backthrougb foreclosure, Johnson said. It’s unclear whetherr the bank will face further regulatoru scrutiny like at least seven other bankwsacross Washington. “It’s hard to said Johnson.
“We would hope not. But some of our peerx and brethren wereunpleasantly surprised, so it’s reall y hard to make any predictions.”