Bank Cadence set to acquire Industry Bancshares
In a significant move, Cadence Bank has agreed to acquire Industry Bancshares in an all-cash transaction valued between $20 million and $60 million. The deal, which is expected to close during the second half of 2025, subject to regulatory and shareholder approvals, will add $4.4 billion in assets, $1.1 billion in loans, and $4.5 billion in deposits to Cadence Bank.
Headquartered in Industry, Texas, Industry Bancshares was founded in 1911 and has around 340 employees. However, the bank has been operating under regulatory consent orders from the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. involving all of its six subsidiaries.
The Federal Reserve dropped the enforcement actions against Industry Bancshares coincident with the completion of the merger on July 1, 2025, indicating regulatory approval of Cadence's ability to manage and resolve Industry’s issues. The acquisition was viewed as a positive transition for Industry's operations, giving regulators confidence that Cadence Bank's stronger financial position and management could address the concerns underlying the consent orders.
Cadence Bank plans to sell $1.4 billion of Industry's securities post-closing, reinvesting the proceeds in loans and other earning assets. The remaining 60% of Industry's securities will be gradually liquidated while earning accretion income.
Industry Bancshares has negative tangible common equity and net income due to significant unrealized losses of $869 million in its available-for-sale securities portfolio. The acquisition will add approximately $4.1 billion in assets and expand Cadence's presence in Texas, highlighting Cadence's financial strength and operational capacity to absorb Industry.
The deal needs to meet Industry's equity capital minimum requirements at closing. Cadence Bank expects no significant branch reductions as a cost-savings measure, with only one or two branch closures due to overlap.
Executives from Industry, including Doak Hartley, Michelle Hodge, Mike Mueller, Brent Jones, Gary Durrenberger, Kyle Holloway, Lisa Moeller, and Mike Kalina, will continue in key roles in their respective communities within the combined entity. Carl J. Chaney, executive chairman of Industry Bancshares, stated that the merger represents an exciting new chapter for their customers and communities.
Cadence Bank, known for its history of M&A deals, has recently received regulatory approval for its latest deal, buying FCB Financial, within 61 days of the announcement. Analysts have a positive risk-reward view based on a stable credit outlook, a solid core deposit base, and a growing presence in attractive markets.
The acquisition will also add 27 branches across central and southeast Texas to Cadence Bank. Industry Bancshares was hit with consent orders by the Federal Deposit Insurance Corp for three other subsidiaries. No information about purchasing licensing rights was provided in the paragraph.
In conclusion, the acquisition of Industry Bancshares by Cadence Bank is a significant move that brings stability and growth to both entities. The deal is expected to close in the second half of 2025, subject to regulatory and shareholder approvals. The acquisition will add substantial assets and branches to Cadence Bank, while providing Industry Bancshares with the financial strength and management necessary to address its regulatory concerns.
- The acquisition of Industry Bancshares by Cadence Bank, valued between $20 million and $60 million, will expand Cadence Bank's presence in the business sector, particularly in banking-and-insurance and finance, as it incorporates Industry Bancshares' operations and assets.
- The merger between Cadence Bank and Industry Bancshares is significant, as it brings together two entities with a strong presence in the industry, each possessing a vast network of loans, deposits, and branches, thereby creating a more robust business conglomerate.
