Cadence Bank in Houston has agreed to buy Industry Bancshares in Industry, Texas, which has been dealing with regulatory issues tied to its securities portfolios.
The $50 billion-asset Cadence said in a press release that it will pay between $20 million and $60 million in cash, based on Industry’s equity capital at closing. Cadence can also walk away from the deal if Industry’s equity capital falls below a certain threshold.
The deal is expected to close in the second half of this year.
Industry, the holding company for six banks, has 27 branches, $1.1 billion of loans, and $4.5 billion of deposits. Each bank has levels of unrealized securities losses that have concerned regulators.
Cadence’s “community banking foundation aligns well with the community focus of Industry Bancshares’ six bank subsidiaries,” Dan Rollins, Cadence’s chairman and CEO, said in the release.
“Because we operate in very similar markets across Texas and the South, we understand the needs of these local economies and can bring expanded product offerings and increased lending opportunities to fuel future growth,” Rollins added. “With our banking services and technology, we will be able to deliver an enhanced customer experience and help even more customers reach their financial goals.”
Several Industry executives are expected to continue in key roles in their respective communities after the sale closes.
“This merger represents an exciting new chapter for our customers and communities,” Carl Chaney, Industry’s executive chairman, said in the release. “Cadence shares our deep commitment to building strong relationships and doing what is right for our customers and communities. With their scale, resources and relationship-driven approach, this merger will allow continued personal service and trusted expertise our customers depend on.”
Industry was advised by Hovde Group and Alston & Bird. Cadence was advised by UBS Investment Bank and Sullivan & Cromwell.