Cadence Bank completes $4.4 billion acquisition of Industry Bancshares

HOUSTON/TUPELO - Cadence Bank (NYSE:CADE), a financial institution with a market capitalization of approximately $6 billion and a strong track record of maintaining dividend payments for 41 consecutive years, has completed its acquisition of Industry Bancshares, Inc., the parent company of six Texas-based banks, the company announced Tuesday.

The transaction, which received all required regulatory and shareholder approvals, was finalized on July 1 after what the company described as a rapid approval process. Industry Bancshares reported total assets of $4.4 billion, loans of $1.1 billion, and deposits of $4.5 billion as of March 31, 2025. According to InvestingPro data, Cadence Bank has demonstrated robust financial performance with a 45.5% revenue growth in the last twelve months and maintains a GREAT overall financial health score.

"We are pleased to have received regulatory approval and completed our acquisition of Industry Bancshares, Inc. so quickly," said Dan Rollins, chairman and CEO of Cadence Bank, in a press release statement.

The merger expands Cadence Bank’s presence in Texas, creating a combined network of more than 380 branches across the South and Texas, along with over 400 ATM and LIVE Teller locations throughout its footprint.

Customers of Industry Bancshares’s subsidiary banks will not experience immediate changes to their banking services and should continue using their existing accounts and services. Cadence Bank indicated that customers will receive information about potential changes this fall, with operational integration planned for the fourth quarter of 2025.

The acquisition includes Industry State Bank, The First National Bank of Bellville, Fayetteville Bank, Citizens State Bank, The First National Bank of Shiner, and Bank of Brenham.

Cadence Bank noted that customer deposit accounts will continue to be insured by the Federal Deposit Insurance Corporation (FDIC), with separate insurance for deposits from the acquired banks continuing for six months from the acquisition date.

Following the acquisition, Cadence Bank maintains its corporate offices in Houston, Texas and Tupelo, Mississippi. With the company’s next earnings report scheduled for July 28, 2025, investors can access comprehensive analysis and additional insights through InvestingPro, which offers detailed research reports and financial metrics for over 1,400 US stocks, including Cadence Bank’s attractive P/E ratio of 11.4 and consistent dividend growth history.

In other recent news, Cadence Bank announced its first-quarter 2025 earnings, reporting a net income to tangible assets ratio of 1.09%, with an adjusted return on average assets rising to 1.15%. This financial performance follows Moody’s affirmation of Cadence’s ratings, with the outlook adjusted to stable, reflecting improvements in asset quality and reduced exposure to commercial real estate construction lending. The bank has also made strategic moves, such as acquiring Industry Bancshares in Texas, a transaction expected to enhance its market presence and core deposit base. Furthermore, Cadence has initiated a share repurchase program to buy back up to 10 million shares, pending Federal Reserve approval, as part of its capital management strategy.

Analyst firms have adjusted their price targets for Cadence Bancorp, with DA Davidson lowering it to $37 while maintaining a Buy rating, and Keefe, Bruyette & Woods reducing it to $38, keeping an Outperform rating. Despite these adjustments, both firms highlight Cadence’s robust loan growth and positive revenue outlook. The bank’s strategic focus on organic growth and potential mergers and acquisitions is emphasized as a key factor in its future performance. Cadence’s recent acquisitions and strategic initiatives indicate a continued emphasis on expansion and capital efficiency.

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