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HOUSTON - Cadence Bank (NYSE: CADE), currently valued at $5.3 billion with shares trading at $28.85, has entered into a definitive merger agreement with Industry Bancshares, Inc., a bank holding company for six Texas banks, in a move to significantly broaden its footprint in the state. According to InvestingPro analysis, Cadence Bank is currently trading near its Fair Value, with analysts setting price targets between $31 and $38. The transaction, announced today, involves a cash payment by Cadence for all outstanding common stock of Industry Bancshares, with the amount ranging from $20 million to $60 million based on certain closing conditions.
Industry Bancshares, founded in 1911 and headquartered in Industry, Texas, reported assets of $4.4 billion, loans of $1.1 billion, and deposits of $4.5 billion as of March 31, 2025. The merger is expected to provide Cadence Bank with a robust core deposit base and an expanded presence in growing markets across Central and Southeast Texas. Cadence Bank has demonstrated strong financial performance with a P/E ratio of 9.89 and maintains a steady 3.78% dividend yield, having consistently paid dividends for 41 consecutive years. InvestingPro subscribers can access additional insights through comprehensive Pro Research Reports, which provide deep-dive analysis of 1,400+ top US stocks, including Cadence Bank’s complete financial health metrics and growth potential.
Dan Rollins, chairman and CEO of Cadence Bank, highlighted the shared community banking values of the two entities and the potential for expanded product offerings and increased lending opportunities to support local economic growth. The merger aims to enhance customer experiences and financial services.
Key executives from Industry Bancshares are set to continue their roles within the combined organization post-merger, ensuring continuity for customers. Carl J. Chaney, executive chairman of Industry Bancshares, expressed enthusiasm for the merger’s potential to maintain personalized service backed by Cadence’s resources.
The boards of directors of both companies have unanimously approved the merger, which is subject to regulatory and shareholder approvals and other customary closing conditions. The deal is targeted to close in the second half of 2025.
Advisors for the transaction include Hovde Group LLC and Alston & Bird LLP for Industry Bancshares, and UBS Investment Bank and Sullivan & Cromwell LLP for Cadence Bank. Additional details about the merger are available in an investor presentation on Cadence’s Investor Relations site and in a Current Report on Form 8-K filed with the Federal Reserve.
The information in this article is based on a press release statement. Cadence Bank, with corporate offices in Houston, Texas, and Tupelo, Mississippi, has been serving customers for nearly 150 years and manages assets worth $50 billion.
In other recent news, Cadence Bancorp reported first-quarter earnings that exceeded analyst expectations, with earnings per share reaching $0.71 compared to a forecast of $0.64. However, the company’s revenue slightly missed projections, coming in at $448.6 million against a forecast of $451.3 million. Additionally, Cadence Bancorp completed the acquisition of First Chatham Bank, expanding its presence in Georgia. Analysts at DA Davidson and Keefe, Bruyette & Woods both lowered their price targets for Cadence Bancorp to $37 and $38, respectively, while maintaining positive ratings on the stock. DA Davidson noted the company’s strong loan growth and positive net interest income trajectory, while Keefe analysts highlighted the robust revenue growth potential despite a flatter net interest margin outlook. Cadence Bank also announced a 10 million share buyback program, contingent on Federal Reserve approval, to expire by the end of 2025. These developments reflect Cadence Bancorp’s strategic focus on growth and capital management.
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