Cascade Financial sees up to $21M loss - Boston Business Journal:

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Everett, Wash.-based Cascade Financial, the parent companyu of , said it expects to take a $15 milliob provision against badloans — among the highesty quarterly provisions in the company’s recent history, said Lars chief financial officer. Its total provision for bad loanswas $25 milliojn at the end of March. with 22 branches across the also said it expects to take a charge of $12 million related to its 2005 purchase of Issaquahy Bank. Second quarter results are dueJuly 27.
Like many Pugegt Sound region banks, Cascade is struggling with construction loans that have gone bad as developerds default amid thehousing market’s Cascade has not released its anticipated number of problejm loans for the second quarter, but they “will be Johnson said. In the first quarter, the bank’ss nonperforming assets — one measures of bad loans — were $59.7 million, or 3.6 percent of totapl assets. That number includes $9.1 millio n in property the bank has takenb backthrough foreclosure, Johnson said. It’s unclear whethe the bank will face further regulatory scrutinhy like at least seven other bankeacross Washington.
“It’s hard to said Johnson. “We woul hope not. But some of our peerse and brethren wereunpleasantly surprised, so it’s really hard to make any