Federal and Oregon bank regulators have ended a 2009 order against Bank of the Cascades requiring the bank to strengthen itself financially, company officials said Thursday.
Bank of the Cascade, headquartered in Bend, Ore, was hit by the collapsing real estate market as property values tumbled five years ago. Two-thirds of its loans were in land development in Bend and the Boise area.
Regulators told the bank to increase its capital and reduce its number of problem loans.
In the worst of the financial crisis, Bank of the Cascades approached some customers and encouraged them to move their business to a competitor.
In 2010, three equity companies and David F. Bolger, who merged his Idaho-based Farmers & Merchants State Bank into Cascade Bancorp in 2006, became major participants in a $177 million cash infusion into the bank.
“Relief from the order underscores significant progress made at Bank of the Cascades,” said Terry Zink, CEO.
Termination of the order recognizes the bank's improved capital position which exceeds minimum capital ratios required to qualify as a well capitalized institution, bank officials said.
Bank of the Cascades has a dozen branches in the Treasure Valley.
Five other banks doing business in Idaho remain under regulatory orders: Idaho Banking Co. and Syringa Bank in Boise, Farmers National Bank, in Buhl, Bank of Idaho in Idaho Falls and Idaho First Bank in McCall.
