Oregon Public Broadcasting

Bend's largest bank will ask shareholders Monday to dilute their shares in an effort to stabilize the bank.

Ethan Lindsey reports on the Bank of the Cascades special shareholders' vote.

Cascade Bancorp is the parent company of Bank of the Cascades.

Because of the depressed home and commercial real estate market in central Oregon, the firm has lost more than $180 million in the past 12 months.

In August, federal regulators issued a cease and desist order against the bank for its troubled balance sheet.

Shareholders now have a chance to vote to issue six-times more stock to a private investor and a private equity fund, raising $150 million.

Critics say the move dilutes existing shares and shareholders' investment.

In a press release, bank CEO Patricia Moss said this is "part of the process to raise more capital". That was one of the things federal regulators told the bank it had to do, in order to stay in business.