Cadence Bank Plans to Acquire Industry Bancshares
Cadence Bank Acquires Industry Bancshares in $20-$60 Million Deal
Cadence Bank has announced its acquisition of Industry Bancshares in an all-cash transaction, strengthening its presence in Texas and expanding its regional deposit market share. The deal, valued between $20 million and $60 million, includes 27 branches across central and southeast Texas and approximately $4.1 billion in assets.
The acquisition will add $4.4 billion in assets, $1.1 billion in loans, and $4.5 billion in deposits to Cadence's portfolio. Despite Industry Bancshares' negative tangible common equity and regulatory concerns, the deal was approved due to Cadence Bank's strong capital position and strategic alignment with Industry's community banking focus.
Cadence Bank, known for its history of M&A deals, recently received regulatory approval for its deal with FCB Financial, the parent company of First Chatham Bank. The bank maintains strong regulatory capital levels, with a Common Equity Tier 1 ratio of 12.2% and Total Capital of 13.8% as of Q2 2025.
Executives from Industry Bancshares, 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.
Industry Bancshares, headquartered in Industry, Texas, and founded in 1911, has around 340 employees. Post-closing, Cadence Bank plans to sell $1.4 billion of Industry's securities, reinvesting the proceeds in loans and other earning assets.
Industry Bancshares is currently operating under consent orders from the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. involving all of its six subsidiaries. The Office of the Comptroller of the Currency issued cease-and-desist orders against three of Industry's subsidiaries for unsafe banking practices.
Raymond James analysts have a positive risk-reward view, citing a stable credit outlook, a solid core deposit base, and a growing presence in attractive markets. The acquisition is expected to close during the second half of 2025, pending regulatory and shareholder approvals, and meeting Industry's equity capital minimum requirements at closing.
Cadence Bank expects no significant branch reductions as a cost-saving measure, with only one or two branch closures due to overlap. The remaining 60% of Industry's securities will be gradually liquidated while earning accretion income. The acquisition is expected to enhance Cadence's Texas footprint, giving it the fifth-largest regional deposit market share in the state post-closing.
In summary, the regulatory approval for this acquisition despite Industry Bancshares’ troubled financial condition was based on Cadence Bank’s capital strength, operational scale, and strategic fit, which addressed the regulatory concerns and enabled a smoother transition and integration rather than allowing Industry Bancshares to persist in distress under regulatory orders. This rationale aligns with typical regulatory practices for bank resolutions and acquisitions under distress.
- The acquisition of Industry Bancshares by Cadence Bank, valued between $20 million and $60 million, will not only strengthen Cadence Bank's presence in Texas but also expand its business in the finance and banking-and-insurance sector.
- With the addition of Industry Bancshares' assets, loans, and deposits to its portfolio, Cadence Bank's business in the banking-and-insurance industry is poised for significant growth, enhancing its regional market share and diverse revenue streams.
