Cascade Financial Corp. (CASB), the holding company for Cascade Bank, Tuesday reported a third quarter net loss, compared to a profit in the previous year, on an Other Than Temporary Impairment or OTTI charge on Fannie Mae and Freddie Mac preferred shares.
The Everett, Washington-based company reported a third quarter net loss of $6.619 million or 0.55 per share, compared to net income of $3.79 million or $0.31 per share in the previous year.
The OTTI charge amounted to $17.34 million in the just concluded period, which was absent last year.
Prior to this charge, third quarter earnings were $4.7 million or $0.38 per share. On average, three analysts polled by First Call/Thomson Financial expected a loss of $0.05 per share for the quarter.
Net interest income grew to $12.84 million from $10.81 million. Total other income increased to $2.32 million from $1.94 million generated last year. Analysts expected revenues of $14.01 million.
Provision for loan losses surged to $1.25 million from $350 thousand in the previous year period.
For the first nine months of 2008 with the OTTI charge, Cascade reported a loss of $372,000 or $0.03 per share, compared to earnings of $11.5 million or $0.94 per share in the first nine months of 2007. Net interest income rose to $34.76 million from $32.08 million in the previous year, while Other Income rose to $6.99 million from $5.83 million in the previous year.
CASB closed Tuesday's regular trade at $6.62, down $0.03 or 0.45%, on 28,601 shares.
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