The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Cadence uses insurance sale to absorb securities sales

Cadence Bank used proceeds from the sale of its insurance business to more than offset a large securities sale.

The $48.9 billion-asset bank, with offices in Tupelo, Miss., and Houston, said in a press release that its fourth-quarter net income was more than double that of a year earlier, at $257 million.

Cadence sold its insurance unit in November for $904 million, including a $520 million net gain on sale.

The bank then sold $3.1 billion of lower-yielding securities at a $294.1 million after-tax loss. It reinvested a third of the proceeds into higher-yielding securities and used another $645 million to pay down brokered deposits. The remaining funds are being held as cash, earning 5.4% on Dec. 31.

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