Oregon Public Broadcasting

Central Oregon’s largest bank  revealed Thursday that it lost more than $12.5 million in the past three months.

But, Bank of the Cascades also announced a stock offering it says will stabilize the company for the future.

From Bend, Ethan Lindsey reports.

The collapse of the housing market devastated Bank of the Cascades' balance sheet.

And in August, the Federal Deposit Insurance Corporation ordered the Bank to increase its capital. The Federal Reserve echoed that threat this week – and told the bank not to pay any stock dividends.

Bank of the Cascades CEO and President Patricia Moss says two private investors have agreed to put an additional $65 million  into the company’s stock.

Besides just raising more capital, regulators also asked the bank to reduce delinquent loans and commercial real estate loans.

Patricia Moss: “I think this is good news for the bank and for our community. We believe that we are well on track in meeting the requirements that are scheduled with the regulators.”

Moss says the bank hopes to issue new shares to the public – raising $150 million of new capital, in total. In December, the bank will ask existing shareholders to approve the plan.