ISSUER FREE WRITING PROSPECTUS
Filed Pursuant to Rule 433
(Supplementing Preliminary Prospectus Dated July 22, 2009)
Registration No. 333-160324
July 23, 2009
This free writing prospectus should be read together with the preliminary prospectus dated July 22, 2009 relating to this offering (the “Preliminary Prospectus”), included in Amendment No. 1 to the Registration Statement on Form S-1 (File No. 333-160324). The most recent Registration Statement can be accessed through the following link: http://www.sec.gov/Archives/edgar/data/742054/000119312509152700/ds1a.htm
The information provided in the following press release issued by Cadence Financial Corporation on July 23, 2009 supplements and updates the information contained in the Preliminary Prospectus.
| Contact: |
Richard T. Haston |
For Immediate Release | ||
| 662-324-4258 |
CADENCE FINANCIAL CORPORATION REPORTS SECOND QUARTER RESULTS
STARKVILLE, Miss. – (July 23, 2009) – Cadence Financial Corporation (NASDAQ: CADE), a $2.0 billion bank holding company whose principal subsidiary is Cadence Bank, N.A., today reported a net loss applicable to common shareholders of $14.7 million, or $1.23 per diluted share, for the second quarter ended June 30, 2009, compared with net income of $1.9 million, or $0.16 per diluted share, for the second quarter of 2008. The loss for the 2009 period was due primarily to a higher provision for loan losses and higher non-interest expenses related to increased FDIC insurance premiums and expenses related to other real estate owned (OREO) compared with the second quarter of 2008.
Second Quarter Results
Net interest income declined 24.1% to $10.7 million in the second quarter of 2009 compared with $14.0 million in the second quarter of 2008. Net margin was 2.21% in the second quarter of 2009 compared with 3.11% in the second quarter of 2008. The decline in the net margin was due to the yield on earning assets declining 147 basis points while the cost of funding declined only 64 basis points. The reduction in net margin was due in part to Cadence intentionally building liquidity during the second quarter by accumulating deposits and investing in short-term assets. The increased liquidity resulted in lower yields on the short-term portfolio that was estimated to cost about 21 basis points in net margin for the second quarter of 2009. Interest income was also reduced by approximately $602,000 (12 basis points) in the second quarter of 2009 due to waived interest charges associated with loans on non-accrual status compared with $122,000 (2 basis points) in the second quarter of 2008.
Total interest income declined 20.6% to $20.4 million in the second quarter of 2009 compared with $25.7 million in the second quarter of 2008. Interest and fees on loans declined 23.7% due to a 114 basis point decrease in average yields and an $85.4 million decrease in average loan balances from the second quarter of 2008. Non-performing loans totaled $72.8 million in the second quarter of 2009 compared with $10.7 million in the second quarter of 2008. In the second quarter of 2009, interest and dividends on investment securities fell 9.1% to $4.7 million compared with the second quarter of 2008 due to a 51 basis point decline in yield offset partially by a $20.0 million increase in the average investment securities portfolio.
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CADE Reports Second Quarter Results
Page 2
July 23, 2009
Cadence’s provision for loan losses was $23.0 million in the second quarter of 2009 compared with $3.3 million in the second quarter of 2008 and $32.8 million in the first quarter of 2009. The second quarter 2009 provision included $15.3 million in net charge-offs and a $7.7 million increase in the allowance for loan losses. At the end of the second quarter of 2009, the allowance for loan losses was $46.7 million, or 3.8% of total loans, compared with $15.8 million, or 1.2% of total loans, in the second quarter of 2008. Net interest loss after provision for loan losses was $12.3 million in the second quarter of 2009 compared with $10.7 million in net interest income after provision for loan losses in the second quarter of 2008.
The majority of the increase in Cadence’s non-performing loans since last year was due to real estate loans in the residential construction and development sectors, reflecting the economy’s impact on real estate based loans. In the latest quarter, the growth in non-performing loans was due largely to the middle Tennessee market where Cadence has added staff with the sole focus on managing special assets.
Cadence has taken additional steps to reduce its exposure to real estate loans across its franchise and has achieved a decrease in loans for 1-4 speculative residential construction, land development and lots to builders in addition to lower balances on commercial real estate loans. These higher risk loan categories are down approximately $13.8 million in the latest three months and down $91.7 million since the second quarter of 2008. In addition, OREO is down by 13.1% since the first quarter of 2009 to $16.7 million and is at the lowest point in over a year. The reduction in OREO is due to increased special assets staff that is focused on minimizing losses from non-performing loans and repossessed assets.
Total non-interest income was $5.2 million in the second quarter of 2009 compared with $5.1 million in the second quarter of 2008. The increase in non-interest income was due to higher insurance fees and commissions, mortgage loan origination income, and gains on securities; offset partially by lower service charges on deposits, trust department income and other non-interest income. Trust department income was down due to lower fees related to the decline in the market value of equity investments under management, while the increase in mortgage fee income benefited from higher transaction volume due to an increase in home financings compared with the second quarter of 2008.
Non-interest expenses increased 20.2% to $16.3 million in the second quarter of 2009 compared with $13.6 million in the second quarter of 2008. The increase was due primarily to other operating expenses that rose 70% to $6.5 million compared with $3.8 million in the second quarter of 2008. Second quarter 2009 non-interest expenses increased due to higher costs for FDIC insurance premiums and special assessments, and expenses related to OREO. FDIC insurance premiums and special assessments increased from $274,000 in the second quarter of 2008 to $1,225,000 in the second quarter of 2009. OREO related costs increased to $1,609,000 in the second quarter of 2009 compared with $222,000 in the same quarter of the prior year. Salary expense was up 1.2% to $7.8 million and premises expenses were down 1.5% to $2.0 million compared with the second quarter of 2008. The minimal growth in salary and premises costs are attributable to Cadence’s continued focus on cost controls.
Cadence’s pre-tax loss for the second quarter of 2009 was $23.5 million compared with pre-tax income of $2.3 million in the second quarter of 2008.
Net loss for the second quarter of 2009 was $14.0 million. Net loss applicable to common shareholders was $14.7 million, or $1.23 per diluted share. This compares with net income of $1.9 million, or $0.16 per diluted share, in the second quarter of 2008.
Cadence sold $44 million in senior preferred shares to the U.S. Treasury in mid-January 2009. The preferred shares pay a cumulative annual dividend of 5% for the first five years. Cadence’s second quarter 2009 loss applicable to common shareholders included $652,000 related to the preferred dividend and accretion of the discount recorded in relation to the preferred stock.
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CADE Reports Second Quarter Results
Page 3
July 23, 2009
Six Month Results
Net interest income declined 19.4% to $23.0 million in the first six months of 2009 compared with $28.6 million in the same period of 2008. The decrease in net interest income was due to a 75 basis point decrease in net margin, partially offset by a 5.8% increase in average earning assets for the first six months of 2009 compared with the same period in 2008. The provision for loan losses was $55.8 million in the first six months of 2009 compared with $6.3 million in the first six months of 2008.
Net loss applicable to common stockholders for the first six months of 2009 was $99.1 million, or $8.32 per diluted share, compared with net income of $4.6 million, or $0.39 per diluted share, in the same period of 2008. The 2009 results include a $66.8 million ($5.61 per diluted share) non-cash charge associated with the write-down of goodwill in the first quarter of the year. The goodwill impairment charge was required by FASB Statement 142 (Goodwill and Other Intangible Assets) and was an accounting adjustment that did not affect current operations, cash flows, liquidity, tangible book capital, regulatory capital, regulatory capital ratios and will not affect future operations.
We have filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents we have filed with the SEC for more complete information about us and this offering. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, you may obtain the prospectus related to the offering from us or from FBR Capital Markets & Co. if you request it by calling toll-free 1-800-846-5050.
About Cadence Financial Corporation
Cadence Financial Corporation is a $2.0 billion bank holding company providing full financial services, including banking, trust services, mortgage services, insurance and investment products in Mississippi, Tennessee, Alabama, Florida and Georgia. Cadence’s stock is listed on the NASDAQ Global Select Market under the symbol CADE.
Forward-Looking Statements
This press release contains statements that are forward-looking as defined within the Private Securities Litigation Reform Act of 1995. These forward-looking statements are provided to assist in the understanding of anticipated future financial results. However, such forward-looking statements involve risks and uncertainties (including uncertainties relating to interest rates, management and operation of acquired operations and general market risks) that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the Company’s actual results, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, and other reports filed with the Securities and Exchange Commission. Cadence Financial Corporation is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by wire services or Internet services.
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CADE Reports Second Quarter Results
Page 4
July 23, 2009
CADENCE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
JUNE 30,
($ in thousands, except share data)
| 2009 | 2008 | |||||||
| ASSETS: |
||||||||
| Cash and Due From Banks |
$ | 31,484 | $ | 40,273 | ||||
| Interest Bearing Deposits Due From Banks |
44,371 | 8,509 | ||||||
| Total Cash and Due From Banks |
75,855 | 48,782 | ||||||
| Securities: |
||||||||
| Securities Available-for-Sale |
546,728 | 405,691 | ||||||
| Securities Held-to-Maturity |
14,196 | 21,162 | ||||||
| Total Securities |
560,924 | 426,853 | ||||||
| Federal Funds Sold and |
||||||||
| Securities Purchased Under Agreements To Resell |
20,566 | 11,760 | ||||||
| Other Earning Assets |
19,424 | 18,628 | ||||||
| Loans |
1,244,227 | 1,354,372 | ||||||
| Less: Allowance for Loan Losses |
(46,722 | ) | (15,825 | ) | ||||
| Net Loans |
1,197,505 | 1,338,547 | ||||||
| Premises and Equipment, Net |
32,305 | 34,321 | ||||||
| Interest Receivable |
8,355 | 10,628 | ||||||
| Other Real Estate Owned |
16,686 | 18,207 | ||||||
| Goodwill and Other Intangibles |
1,667 | 69,244 | ||||||
| Other Assets |
46,885 | 20,852 | ||||||
| Total Assets |
$ | 1,980,172 | $ | 1,997,822 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY: |
||||||||
| Noninterest-Bearing Deposits |
$ | 167,971 | $ | 179,744 | ||||
| Interest-Bearing Deposits |
1,377,297 | 1,227,369 | ||||||
| Total Deposits |
1,545,268 | 1,407,113 | ||||||
| Interest Payable |
2,312 | 2,941 | ||||||
| Federal Funds Purchased and |
||||||||
| Securities Sold Under Agreements to Repurchase |
88,374 | 99,540 | ||||||
| Federal Home Loan Bank Borrowings |
167,535 | 254,993 | ||||||
| Subordinated Debentures |
30,928 | 30,928 | ||||||
| Other Liabilities |
16,262 | 12,713 | ||||||
| Total Liabilities |
1,850,679 | 1,808,228 | ||||||
| SHAREHOLDERS’ EQUITY: |
||||||||
| Preferred Stock - $10 Par Value, Authorized 10,000,000 shares, Issued - 44,000 Shares at June 30, 2009 |
41,893 | — | ||||||
| Common Stock - $1 Par Value, Authorized 50,000,000 shares, Issued - 11,912,564 Shares at June 30, 2009 and 11,907,414 Shares at June 30, 2008 |
11,913 | 11,907 | ||||||
| Surplus and Undivided Profits |
76,066 | 182,494 | ||||||
| Accumulated Other Comprehensive Income (Loss) |
(379 | ) | (4,807 | ) | ||||
| Total Shareholders’ Equity |
129,493 | 189,594 | ||||||
| Total Liabilities and Shareholders’ Equity |
$ | 1,980,172 | $ | 1,997,822 | ||||
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CADE Reports Second Quarter Results
Page 5
July 23, 2009
CADENCE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except share and per share data)
| FOR THE THREE MONTHS | FOR THE SIX MONTHS | ||||||||||||||
| ENDED JUNE 30 | ENDED JUNE 30 | ||||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||||
| INTEREST INCOME: |
|||||||||||||||
| Interest and Fees on Loans |
$ | 15,609 | $ | 20,458 | $ | 32,175 | $ | 43,503 | |||||||
| Interest and Dividends on Investment Securities |
4,667 | 5,136 | 9,725 | 10,576 | |||||||||||
| Other Interest Income |
141 | 136 | 223 | 260 | |||||||||||
| Total Interest Income |
20,417 | 25,730 | 42,123 | 54,339 | |||||||||||
| INTEREST EXPENSE: |
|||||||||||||||
| Interest on Deposits |
7,714 | 8,784 | 14,873 | 19,449 | |||||||||||
| Interest on Borrowed Funds |
2,039 | 2,904 | 4,233 | 6,329 | |||||||||||
| Total Interest Expense |
9,753 | 11,688 | 19,106 | 25,778 | |||||||||||
| Net Interest Income |
10,664 | 14,042 | 23,017 | 28,561 | |||||||||||
| Provision for Loan Losses |
22,995 | 3,300 | 55,756 | 6,300 | |||||||||||
| Net Interest Income After Provision for Loan Losses |
(12,331 | ) | 10,742 | (32,739 | ) | 22,261 | |||||||||
| OTHER INCOME: |
|||||||||||||||
| Service Charges on Deposit Accounts |
2,125 | 2,201 | 4,130 | 4,338 | |||||||||||
| Trust Department Income |
507 | 578 | 973 | 1,142 | |||||||||||
| Insurance Commission and Fee Income |
1,050 | 1,037 | 2,356 | 2,416 | |||||||||||
| Mortgage Loan Fee Income |
427 | 348 | 637 | 708 | |||||||||||
| Other Non-Interest Income |
992 | 1,002 | 2,749 | 2,362 | |||||||||||
| Gains (Losses) on Securities - Net |
76 | (48 | ) | 139 | 155 | ||||||||||
| Total Other Income |
5,177 | 5,118 | 10,984 | 11,121 | |||||||||||
| OTHER EXPENSE: |
|||||||||||||||
| Salaries and Employee Benefits |
7,842 | 7,749 | 15,742 | 15,716 | |||||||||||
| Net Premises and Fixed Asset Expense |
1,977 | 2,008 | 3,956 | 4,004 | |||||||||||
| Impairment Loss on Goodwill |
— | — | 66,846 | — | |||||||||||
| Other Operating Expense |
6,515 | 3,833 | 11,333 | 7,701 | |||||||||||
| Total Other Expense |
16,334 | 13,590 | 97,877 | 27,421 | |||||||||||
| Income (Loss) Before Income Taxes |
(23,488 | ) | 2,270 | (119,632 | ) | 5,961 | |||||||||
| Applicable Income Tax Expense (Benefit) |
(9,478 | ) | 392 | (21,461 | ) | 1,322 | |||||||||
| Net Income (Loss) |
(14,010 | ) | 1,878 | (98,171 | ) | 4,639 | |||||||||
| Preferred Stock Dividend and Accretion of Discount |
652 | — | 974 | — | |||||||||||
| Net Income (Loss) Applicable to Common Shareholders |
$ | (14,662 | ) | $ | 1,878 | $ | (99,145 | ) | $ | 4,639 | |||||
| Net Income (Loss) Per Share - Basic and Diluted |
$ | (1.18 | ) | $ | 0.16 | $ | (8.24 | ) | $ | 0.39 | |||||
| Net Income (Loss) Applicable to Common Shareholders Per Share - Basic and Diluted |
$ | (1.23 | ) | $ | 0.16 | $ | (8.32 | ) | $ | 0.39 | |||||
| Average Weighted Common Shares: |
|||||||||||||||
| Basic |
11,912,564 | 11,907,414 | 11,913,683 | 11,905,262 | |||||||||||
| Diluted |
11,912,586 | 11,936,114 | 11,914,689 | 11,927,228 | |||||||||||
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CADE Reports Second Quarter Results
Page 6
July 23, 2009
CADENCE FINANCIAL CORPORATION
FINANCIAL HIGHLIGHTS
($ in thousands, except per share data)
| FOR THE THREE MONTHS ENDED JUNE 30: | 2009 | 2008 | ||||||
| Net Income (Loss) Applicable to Common Shareholders |
$ | (14,662 | ) | $ | 1,878 | |||
| Basic and Diluted Net Income (Loss) Per Common Share |
(1.23 | ) | 0.16 | |||||
| Cash Dividends Per Common Share |
— | 0.25 | ||||||
| ANNUALIZED RETURNS |
||||||||
| Return on Average Assets |
-2.9 | % | 0.4 | % | ||||
| Return on Average Equity |
-42.6 | % | 3.9 | % | ||||
| FOR THE SIX MONTHS ENDED JUNE 30: | 2009 | 2008 | ||||||
| Net Income (Loss) Applicable to Common Shareholders |
$ | (99,145 | ) | $ | 4,639 | |||
| Basic and Diluted Net Income (Loss) Per Common Share |
(8.32 | ) | 0.39 | |||||
| Cash Dividends Per Common Share |
0.05 | 0.50 | ||||||
| ANNUALIZED RETURNS |
||||||||
| Return on Average Assets |
-9.9 | % | 0.5 | % | ||||
| Return on Average Equity |
-129.0 | % | 4.8 | % | ||||
| SELECTED BALANCES AT JUNE 30: | 2009 | 2008 | ||||||
| Total Assets |
$ | 1,980,172 | $ | 1,997,822 | ||||
| Deposits and Securities Sold Under Agreements to Repurchase |
1,583,642 | 1,455,303 | ||||||
| Loans |
1,244,227 | 1,354,372 | ||||||
| Total Securities |
560,924 | 426,853 | ||||||
| Shareholders’ Equity |
129,493 | 189,594 | ||||||
| Closing Market Price Per Common Share |
2.23 | 10.83 | ||||||
| Book Value Per Common Share |
7.35 | 15.92 | ||||||
| Tangible Equity |
127,826 | 120,350 | ||||||
| Tangible Book Value Per Common Share |
7.21 | 10.11 | ||||||
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CADE Reports Second Quarter Results
Page 7
July 23, 2009
CADENCE FINANCIAL CORPORATION
LOANS AND DEPOSITS BY STATE/REGION
AS OF JUNE 30, 2009:
| MISSISSIPPI | TUSCALOOSA | BIRMINGHAM | MEMPHIS | MIDDLE TN | FLORIDA | GEORGIA | TOTAL | |||||||||||||||||
| LOANS |
29 | % | 10 | % | 7 | % | 24 | % | 16 | % | 11 | % | 3 | % | 100 | % | ||||||||
| DEPOSITS |
58 | % | 10 | % | 2 | % | 13 | % | 5 | % | 10 | % | 2 | % | 100 | % | ||||||||
| AS OF JUNE 30, 2008: |
|
|||||||||||||||||||||||
| MISSISSIPPI | TUSCALOOSA | BIRMINGHAM | MEMPHIS | MIDDLE TN | FLORIDA | GEORGIA | TOTAL | |||||||||||||||||
| LOANS |
29 | % | 9 | % | 6 | % | 27 | % | 15 | % | 11 | % | 3 | % | 100 | % | ||||||||
| DEPOSITS |
63 | % | 11 | % | 1 | % | 11 | % | 6 | % | 6 | % | 2 | % | 100 | % | ||||||||
REAL ESTATE LOAN BALANCES BY STATE/REGION - LINKED QUARTERS ($ in thousands)
| 6/30/09 | 3/31/09 | |||||||||||||
| Balance | % of Total | Balance | % of Total | |||||||||||
| Mississippi |
$ | 218,223 | 24 | % | $ | 221,187 | 23 | % | ||||||
| Tuscaloosa |
100,465 | 11 | % | 100,351 | 10 | % | ||||||||
| Birmingham |
71,326 | 8 | % | 71,561 | 7 | % | ||||||||
| Memphis |
188,391 | 21 | % | 206,343 | 21 | % | ||||||||
| Middle Tennessee |
143,787 | 16 | % | 181,744 | 19 | % | ||||||||
| Florida |
124,029 | 14 | % | 127,387 | 13 | % | ||||||||
| Georgia |
26,964 | 3 | % | 29,297 | 3 | % | ||||||||
| Administration |
30,651 | 3 | % | 33,612 | 4 | % | ||||||||
| Total |
$ | 903,836 | 100 | % | $ | 971,482 | 100 | % | ||||||
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CADE Reports Second Quarter Results
Page 8
July 23, 2009
CADENCE FINANCIAL CORPORATION
($ in thousands)
| 6/30/09 | 3/31/09 | 6/30/08 | ||||||||||
| LOAN BALANCES BY TYPE: |
||||||||||||
| Commercial and Industrial |
$ | 198,836 | $ | 205,262 | $ | 233,306 | ||||||
| Personal |
30,844 | 31,542 | 32,487 | |||||||||
| Real Estate: |
||||||||||||
| Construction |
85,667 | 156,525 | 274,925 | |||||||||
| Commercial Real Estate |
661,087 | 657,774 | 589,859 | |||||||||
| Real Estate Secured by Residential Properties |
130,964 | 128,796 | 130,811 | |||||||||
| Mortgage |
26,118 | 28,387 | 32,243 | |||||||||
| Total Real Estate |
903,836 | 971,482 | 1,027,838 | |||||||||
| Other |
110,711 | 84,733 | 60,741 | |||||||||
| Total |
$ | 1,244,227 | $ | 1,293,019 | $ | 1,354,372 | ||||||
| ASSET QUALITY DATA: |
||||||||||||
| Nonaccrual Loans |
$ | 69,852 | $ | 38,359 | $ | 7,526 | ||||||
| Loans 90+ Days Past Due |
2,906 | 5,791 | 3,174 | |||||||||
| Total Non-Performing Loans |
72,758 | 44,150 | 10,700 | |||||||||
| Other Real Estate Owned |
16,686 | 19,208 | 18,207 | |||||||||
| Total Non-Performing Assets |
$ | 89,444 | $ | 63,358 | $ | 28,907 | ||||||
| Non-Performing Loans to Total Loans |
5.8 | % | 3.4 | % | 0.8 | % | ||||||
| Non-Performing Assets to Total Loans and OREO |
7.1 | % | 4.8 | % | 2.1 | % | ||||||
| Allowance for Loan Losses to Non-Performing Loans |
64.2 | % | 88.5 | % | 147.9 | % | ||||||
| Allowance for Loan Losses to Total Loans |
3.8 | % | 3.0 | % | 1.2 | % | ||||||
| Classified Assets to Capital |
120.7 | % * | 94.5 | % ** | 30.4 | % | ||||||
| Classified Loans to Capital |
107.9 | % * | 81.2 | % ** | 20.3 | % | ||||||
| Classified Loans to Total Loans |
11.2 | % | 9.2 | % | 2.8 | % | ||||||
| Loans 30+ Days Past Due to Total Loans |
3.9 | % | 3.2 | % | 1.5 | % | ||||||
| (loans not included in non-performing loans) |
||||||||||||
| YTD Net Charge-offs to Average Loans YTD |
2.3 | % | 1.1 | % | 0.4 | % | ||||||
| NET CHARGE-OFFS FOR QUARTER |
$ | 15,331 | $ | 14,434 | $ | 2,496 | ||||||
| INTANGIBLE ASSET AMORTIZATION FOR QUARTER |
$ | 155 | $ | 182 | $ | 218 | ||||||
| * | Includes the effect of write-off of goodwill in the first quarter of 2009. Without the goodwill impairment charge, the ratio of classified assets to capital was 79.6% and classified loans to capital was 71.1%. |
| ** | Includes the effect of write-off of goodwill in the first quarter of 2009. Without the goodwill impairment charge, the ratio of classified assets to capital was 64.8% and classified loans to capital was 55.7%. |
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CADE Reports Second Quarter Results
Page 9
July 23, 2009
CADENCE FINANCIAL CORPORATION
ANALYSIS OF NET INTEREST EARNINGS
($ in thousands)
| Average Balance | |||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | |||||||||||
| 6/30/09 | 6/30/08 | 3/31/09 | 6/30/09 | 6/30/08 | |||||||||||
| EARNING ASSETS: |
|||||||||||||||
| Net loans |
$ | 1,273,120 | $ | 1,358,550 | $ | 1,313,743 | $ | 1,293,319 | $ | 1,352,849 | |||||
| Federal funds sold and other interest-bearing assets |
221,341 | 21,970 | 112,586 | 166,936 | 20,225 | ||||||||||
| Securities: |
|||||||||||||||
| Taxable |
358,386 | 322,980 | 362,826 | 360,572 | 328,221 | ||||||||||
| Tax-exempt |
83,389 | 111,719 | 104,967 | 94,118 | 111,242 | ||||||||||
| Totals |
1,936,236 | 1,815,219 | 1,894,122 | 1,914,945 | 1,812,537 | ||||||||||
| INTEREST-BEARING LIABILITIES: |
|||||||||||||||
| Interest-bearing deposits |
1,415,793 | 1,213,598 | 1,340,621 | 1,378,415 | 1,225,781 | ||||||||||
| Borrowed funds, federal funds purchased and securities sold under agreements to repurchase and other interest-bearing liabilities |
299,868 | 397,903 | 317,254 | 308,513 | 382,464 | ||||||||||
| Totals |
1,715,661 | 1,611,501 | 1,657,875 | 1,686,928 | 1,608,245 | ||||||||||
| Net amounts |
$ | 220,575 | $ | 203,718 | $ | 236,247 | $ | 228,017 | $ | 204,292 | |||||
| Interest For | |||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | |||||||||||
| 6/30/09 | 6/30/08 | 3/31/09 | 6/30/09 | 6/30/08 | |||||||||||
| EARNING ASSETS: |
|||||||||||||||
| Net loans |
$ | 15,609 | $ | 20,458 | $ | 16,566 | $ | 32,175 | $ | 43,503 | |||||
| Federal funds sold and other interest-bearing assets |
141 | 136 | 82 | 223 | 260 | ||||||||||
| Securities: |
|||||||||||||||
| Taxable |
3,835 | 3,980 | 4,038 | 7,874 | 8,269 | ||||||||||
| Tax-exempt |
832 | 1,156 | 1,020 | 1,851 | 2,307 | ||||||||||
| Totals |
20,417 | 25,730 | 21,706 | 42,123 | 54,339 | ||||||||||
| INTEREST-BEARING LIABILITIES: |
|||||||||||||||
| Interest-bearing deposits |
7,714 | 8,784 | 7,159 | 14,873 | 19,449 | ||||||||||
| Borrowed funds, federal funds purchased and securities sold under agreements to repurchase and other interest-bearing liabilities |
2,039 | 2,904 | 2,194 | 4,233 | 6,329 | ||||||||||
| Totals |
9,753 | 11,688 | 9,353 | 19,106 | 25,778 | ||||||||||
| Net amounts |
$ | 10,664 | $ | 14,042 | $ | 12,353 | $ | 23,017 | $ | 28,561 | |||||
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CADE Reports Second Quarter Results
Page 10
July 23, 2009
CADENCE FINANCIAL CORPORATION
ANALYSIS OF NET INTEREST EARNINGS
($ in thousands)
| Yields Earned | |||||||||||||||
| And Rates Paid (%) | |||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | |||||||||||
| 6/30/09 | 6/30/08 | 3/31/09 | 6/30/09 | 6/30/08 | |||||||||||
| EARNING ASSETS: |
|||||||||||||||
| Net loans |
4.92 | 6.06 | 5.13 | 5.02 | 6.47 | ||||||||||
| Federal funds sold and other interest-bearing assets |
0.26 | 2.49 | 0.30 | 0.27 | 2.59 | ||||||||||
| Securities: |
|||||||||||||||
| Taxable |
4.29 | 4.96 | 4.51 | 4.40 | 5.07 | ||||||||||
| Tax-exempt |
4.00 | 4.16 | 3.94 | 3.97 | 4.17 | ||||||||||
| Totals |
4.23 | 5.70 | 4.65 | 4.44 | 6.03 | ||||||||||
| INTEREST-BEARING LIABILITIES: |
|||||||||||||||
| Interest-bearing deposits |
2.19 | 2.91 | 2.17 | 2.18 | 3.19 | ||||||||||
| Borrowed funds, federal funds purchased and securities sold under agreements to repurchase and other interest-bearing liabilities |
2.73 | 2.94 | 2.80 | 2.77 | 3.33 | ||||||||||
| Totals |
2.28 | 2.92 | 2.29 | 2.28 | 3.22 | ||||||||||
| Net margin |
2.21 | 3.11 | 2.64 | 2.42 | 3.17 | ||||||||||
| Note: Yields on a tax equivalent basis would be: |
|||||||||||||||
| Tax-exempt securities |
6.16 | 6.40 | 6.08 | 6.10 | 6.41 | ||||||||||
| Total earning assets |
4.37 | 5.84 | 4.77 | 4.54 | 6.17 | ||||||||||
| Net margin |
2.30 | 3.25 | 2.76 | 2.53 | 3.31 | ||||||||||
| Tax equivalent income |
|||||||||||||||
| (in thousands) |
$ | 448 | $ | 623 | $ | 549 | $ | 997 | $ | 1,242 | |||||
-END-