STARKVILLE — Cadence Financial Corporation reported a net loss applicable to common shareholders of $13.1 million, or $1.10 per diluted share, for the third quarter ended Sept. 30, 2009, compared with a net loss of $5.3 million, or $0.44 per diluted share, for the third quarter of 2008.
The loss for the 2009 period was due primarily to a high provision for loan losses and higher non-interest expenses related to increased FDIC premiums and nonrecurring expenses related to early extinguishment of debt and those associated with our efforts to raise capital.
“We are making real progress in reducing Cadence’s exposure to higher risk real estate loans this year in order to improve our earnings prospects,” said Lewis F. Mallory Jr., chairman and CEO of Cadence Financial. “We took aggressive steps to clean up our non-performing loans and charged off $22.5 million in loans in the third quarter of 2009. These actions had the effect of reducing our nonperforming loans and nonperforming assets compared with the second quarter of 2009. In addition, we reduced our other real estate owned for the second consecutive quarter.
“In the fourth quarter of 2009, we expect to report continued improvement in asset quality and a reduced provision for loan losses assuming the current economic trends continue to stabilize and begin to improve.”