EVERETT, Wash., March 26, 2009 (GLOBE NEWSWIRE) -- Cascade Financial Corporation (Nasdaq:CASB), parent company of Cascade Bank, today announced that its Board of Directors has declared a quarterly cash dividend of $0.01 per share, down from $0.045 per share in the previous quarter. This dividend is payable April 29, 2009 to shareholders of record as of April 15, 2009. This reduction will enable Cascade to retain an additional $1.7 million in common equity each year.
"Based on current market conditions, and admittedly being abundantly cautious, we believe that conserving capital through a reduction in the dividend is in the best long-term interest of our shareholders," stated Carol K. Nelson, President and CEO. "While reducing the dividend has been a difficult decision, it is absolutely the right thing for Cascade and our shareholders because it will further strengthen our ability to grow profitably and weather this uncertain economic environment. We hope to return to a more normalized dividend level as market conditions improve."
Chief Financial Officer Lars Johnson said, "In the current environment, generating capital organically, through the retention of profits, is more important than ever. The dividend reduction will enable us to reinvest approximately $1.7 million per year in our business to take advantage of market opportunities to grow and build market share."
Cascade expects to report first quarter 2009 results after the market closes on Tuesday, April 21, 2009. The following day, on Wednesday, April 22, Cascade's management team will discuss the company's operating results in a conference call at 11:00 a.m. PDT (2:00 p.m. EDT). Interested investors may listen to the call live or via replay at www.cascadebank.com. Investment professionals are invited to dial (800) 218-8862 to participate in the call. A replay will be available for a month at (303) 590-3000, using passcode 11128046#.
Investors wishing to reinvest the upcoming dividend must complete the enrollment through the company's transfer agent, Mellon Investor Services. For complete details on this program, please visit the investor relations portion of the company's website at www.cascadebank.com or at www.melloninvestor.com. Interested parties may also contact Mellon Investor Services toll-free at 1-800-839-2983.
About Cascade Financial
Established in 1916, Cascade Bank, the only operating subsidiary of Cascade Financial Corporation, is a state chartered commercial bank headquartered in Everett, Washington. Cascade Bank has proudly served the Puget Sound region for over 90 years and operates 21 full service branches in Everett, Lynnwood, Marysville, Mukilteo, Shoreline, Smokey Point, Issaquah, Clearview, Woodinville, Lake Stevens, Bellevue, Snohomish, North Bend and Burlington.
In September 2008, President and CEO Carol K. Nelson was named to U.S. Banker magazine's list of "25 Women to Watch" in its annual ranking of the 25 Most Powerful Women in Banking and Finance. In June 2008, Cascade was ranked #44 on the Seattle Times' Northwest 100, a list of public companies. In January 2008, Cascade was ranked #10 on Washington CEO magazine's list of Top 25 Washington Banks.
Forward-Looking Statements
Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Reform Act. CASB's actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "intend," "may increase," "may fluctuate," and similar expressions or future or conditional verbs such as "will," "should," "would," and "could." These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; results of various investment activities; the effects of competitors' pricing policies, of changes in laws and regulations on competition and of demographic changes on target market populations' savings and financial planning needs; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; the adoption of CASB of an FFIEC policy that provides guidance on the reporting of delinquent consumer loans and the timing of associated credit charge-offs for financial institution subsidiaries; and the resolution of legal proceedings and related matters. In addition, the banking industry in general is subject to various monetary and fiscal policies and regulations, which include those determined by the Federal Reserve Board, the Federal Deposit Insurance Corporation, and state regulators, whose policies and regulations could affect CASB's results. These statements are representative only on the date hereof, and CASB undertakes no obligation to update any forward-looking statements made.