Cadence Financial has reported a net income of $2.8 million, or $0.23 per diluted share, for the first quarter ended March 31, 2008, which is an increase compared with the net income of $103,000 or $0.01 per diluted share, in the same quarter of 2007.
Net interest income rose 6% to $14.5 million in the quarter compared with $13.7 million posted during the first quarter of 2007. The growth in net interest income was due to a 6.3% increase in earning assets to $1.8 billion, partially offset by a three basis point decrease in net interest margin.
Total interest income declined 2.9% to $28.6 million for the period as against $29.5 million in the comparable quarter of 2007.
The company has announced that its total loans grew 9.4% to a record $1.3 billion based on loans generated in its newer markets of middle Tennessee, Florida, Memphis and Birmingham, US.
Lewis Mallory, chairman and CEO of Cadence Financial, said: We remain focused on asset quality and believe our diversification of loans across markets has provided some buffer to the overall weakness in the credit markets.