(Recasts, adds details, share movement )
July 24 (Reuters) - Cascade Bancorp's CACB.O quarterly profit missed analysts' estimates by a huge margin as provision for bad loans drastically rose and the community bank slashed its quarterly dividend by 90 percent, sending its shares down as much as 16 percent.
Net income for the second quarter was $181,000, or 1 cent a share, compared with $10.2 million, or 36 cents a share in the year ago period.
Analysts expected earnings of 14 cents a share, excluding items, according to Reuters Estimates.
Slashing its dividend to 1 cent a share from 10 cents a share, the company said it remains committed to “prudently preserving capital and focusing on maintaining strong reserves against possible loan losses.”
Provision for loan losses increased to $12.6 million from $1.0 million, while net interest income fell 12 percent to $24.2 million.
Net loan charge-offs were about $9.9 million for the quarter.
The dividend will be paid on Aug. 11 to shareholders of record as of Aug. 4, the company said.
Shares of the company were down $1.24 at $7 in morning trade on Nasdaq, after touching a low of $6.92 earlier. The stock has lost 41 percent of its value since January. (Reporting by Sweta Singh in Bangalore; Editing by Bernard Orr)
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