Cadence not ready to report 4Q earnings
by Ted Carter
Published: February 6,2011
Starkville regional bank poised to go private by end of first quarter
Soon-to-go-private Cadence Bank of Starkville has decided to march to a different drummer in this year’s parade of fourth quarter earnings reports.
Cadence, which will soon come under the private ownership of Houston banking investment group Community Bancorp LLC, says it will release its earnings but it’s unsure when.
“We do not have a definite release date for our earnings,” Cadence spokeswoman Donna Rupp said Friday.
Six days later she gave the same report.
“Nothing new to share regarding earnings,” she said Thursday.
Last year the $1.8 billion bank holding company released its 4Q earnings on Jan. 28.
The Securities & Exchange Commission says that because Cadence’s fiscal year parallels the calendar year the bank can file its 4Q earnings with its annual report. That would give it from 75 to 90 days beyond the close of the quarter to make a fourth quarter 10Q filing. That filing would include unaudited financial statements
Cadence shareholders in December approved the acquisition by Community Bancorp. Shareholders are to receive $2.50 in cash per Cadence common share.
The acquisition will be accomplished through the merger of a newly formed subsidiary of CBC with and into Cadence, with the $1.7 billion Cadence as the surviving corporation.
The acquisition is expected to close this quarter. Cadence officials said they are awaiting approval from the Office of the Comptroller of the Currency, the federal entity that regulates Cadence.
Cadence has been under a consent order by the Comptroller of the Currency to nearly double its Tier One reserve capital. Bank executives say that order will be lifted with the infusion of capital that Community Bancorp will provide.
In the third quarter, Cadence reported a net loss to common shareholders of $7.5 million, or 63 cents a diluted share. For the third quarter of 2009, Cadence had a net loss of $13.1 million, or $1.10 per diluted share.
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