A Houston company that invests in community banks has completed its $30 million buyout of Starkville-based Cadence Financial Corp. and invested $144 million in Cadence Bank, the companies said today.
Community Bancorp LLC agreed on Oct. 6 to acquire Starkville-based Cadence for $2.50 per share. The deal was completed late Friday. Cadence”s 38 offices in Mississippi, Alabama, Tennessee and Florida will continue to operate under the Cadence Bank and Cadence Financial names.
The investment will create new jobs in the Golden Triangle as CBC transforms Cadence”s Starkville headquarters into its “operational headquarters for expansion in the Southeast,” Cadence”s president said.
“Cadence will be hiring new personnel to support these initiatives,” Cadence Financial President Mark Abernathy said in a statement. “Many of these new jobs will be created in the Golden Triangle.”
Over the past 90 days, the company has hired 17 employees, Abernathy said.
Cadence has $1.1 billion in loans, $1.5 billion in deposits and about $1.9 billion in assets. But the company was hit by sour real estate loans that have plagued banking companies nationwide and posted a $112.2 million loss in 2009.
New board chairman Paul Murphy Jr., who also is Community Bancorp”s president, said the $144 million investment “will provide a solid foundation for Cadence”s future growth” and qualify the bank under federal regulations as well capitalized.
Former Chairman Lewis Mallory retired upon completion of the deal. Abernathy remains Cadence”s president and chief executive, posts he has held since 1998. Richard Haston will continue as chief financial officer, while Teresa Hemphill, formerly with Trustmark National Bank in Jackson, was named chief credit officer.
Improved services, new board
Cadence will focus on new products for customers, including developing flexible banking services and an iPhone app. The bank will expand its telephone customer service hours until 8 p.m., the bank said.
The bank is working to improve its IT system, and launching new training programs for employees to improve service, the bank said in the release.
The company is also “broadening its commitment to business customers with a new emphasis on commercial lending,” Abernathy said. “Commercial loans have performed well for Cadence during the recession and we want to increase our focus on providing the capital to businesses in our communities.”
Leading the commercial loan program will be Hemphill, who previously worked for Trustmark National Bank. Cadence had originally agreed to a buyout by Trustmark, but pulled out of the deal to take CBC”s offer.
“In addition, we will continue our community support of economic development partnerships,” Abernathy said. “Many of our senior bankers have taken leadership roles in various economic development organizations and our contributions to those organizations in dollars and volunteerism will continue.”
The bank is also also expanding our funding for affordable housing for low-to-moderate income households, Abernathy said.
Cadence”s board also will have four top officials of Community Bancorp, including Murphy.CBC executives Frank Cox, chief information officer; Stan Levy, CBC chief risk and credit officer; and John McWhorter, CBC chief financial officer, were elected as directors. Abernathy will remain on the board.
CBC has raised $1 billion to buy community banks in the U.S. cadence is its first purchase.
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