March 4, 2010 10:21:00 AM
Cadence Bank could layoff as many as nine employees from its 11 Golden Triangle branches, a company spokesman said today.
Senior Vice President of Marketing John Boydstun said the Starkville-based bank is currently conducting productivity and efficiency studies aimed at reorganizing multiple aspects of company operations, including employees. The majority of the impact to employees will be restructuring job duties, but, "some employees will lose their jobs."
"We don''t know specifically at which locations because we''re not at the point of finishing all reviews. In the Golden Triangle it could be somewhere around nine (employees)," said Boydstun.
He says Cadence managers and human resources officials will determine how many employees to lay off and when after the study has concluded. At that time the company will communicate to employees whether their jobs have been restructured or eliminated.
Boydstun says this is the first time in years Cadence has conducted an efficiency study on this scale. He declined to speculate how many total Cadence employees would be dismissed, or if those jobs would return.
"This is just part of dealing with the economic conditions that all businesses have been operating under in the last 18 months," said Boydstun. "It''s always unfortunate if anyone loses their job in any business. We have to examine our business and see if there is duplication of areas and get things in the right perspective for our shareholders."
Cadence, which has branches in Mississippi, Tennessee, Alabama, Florida and Georgia, has been struggling amid the downturn in the housing market, weighed down by construction and housing loans. The bank posted a $110 million loss in 2009.
The bank earlier this year established a special asset department, whose purpose is to deal with problem loans, bank President Lewis Mallory said in an interview earlier this year. The bank also added to its loan review area, made improvements to its lending policy and "moved aggressively to recognize issues in our loan portfolio," Mallory said.
In January, two members of the bank''s board of directors, James D. Graham and Dan R. Lee, resigned their seats. In a letter to Mallory, which was filed with the Securities and Exchange Commission, Graham said his decision to resign was based on the unwillingness of Cadence officials to sell the bank.
Mallory said in January that the board considered selling the bank. "The board did consider selling and will probably consider it again in future time. They''re constantly weighing what is the best option for the shareholders," he said.
Cadence is among the financial institutions nationwide that sought federal help through the Troubled Asset Relief Program. Cadence sold to the government $44 million in senior preferred shares that pay an annual dividend of 5 percent for the first five years.
In September, the company sold its insurance business, Galloway Chandler McKinney Insurance Agency, back to its original Columbus and West Point-based owners, about the same time the bank shelved a planned sale of stock in an effort to shore up its low stock price.
Cadence stock was up 1 cent at $1.55 this morning, down from a 52-week high of $5.29.
mississippian commented at 3/4/2010 12:15:00 PM:
This is just the beginnining of the end. Cadence stock has plummeted since changing its name. At one time it was well over $20 a share. Now, customers will flock to the bank to close accounts.
Shane commented at 3/4/2010 1:21:00 PM:
The name change alone is not what caused Cadence's downhill slide. You need to look no further than the decisions of management to see what is causing this bank's failure. You are correct Mississippian, this is the beginning of the end.
Willie commented at 3/4/2010 1:49:00 PM:
They should be firing the officers who got them into this mess!
Ridge Runner commented at 3/4/2010 3:00:00 PM:
As a shareholder, I can tell you this, I have lost $26,000.00 in value. As far as I am concerned, I think Board members should be held accountable for this debacle. You don't make risky loans on the assumption that it will all balance in the end, that's robbing Peter to pay Paul. Smoke and mirrors, smoke and mirrors. Hey, I have an idea; looks like a class action for mismanagement, anyone else feel this way?
Tony Banks commented at 3/4/2010 4:48:00 PM:
Am I missing something or has the entire financial sector been suffering? I'm not happy about the stock price either but "mississippian's" post tying Cadence's troubles to the name change is one of the more airheaded posts on the Dispatch website. And, given some of the prattling about the "W"...that's saying something!
Sandra Johnson commented at 3/4/2010 5:19:00 PM:
If Cadence were not located in the Golden Triangle, I doubt that this would be frontpage news. Yes, I lost money in Cadence stock but I also lost money in Wachovia and Worldcom. When you invest in stock, you need to understand the risk. As far as your money in the bank, it is covered by FDIC insurance up to $250,000. If you live in the Golden Triangle, you need to support local businesses. When one has a problem it effects the local economy and can have an impact on you as well.
Willie commented at 3/4/2010 6:06:00 PM:
Yea, times are tough, but the well managed banks are doing ok. BancorpSouth's stock is up 10 percent over the last 2 years, while Cadence is down 90 percent. Shareholders in the Golden Triangle have lost over 100 million dollars in Cadence stock. The local economy will suffer for years from this.
Cadence changed its name in order to expand into Tennessee, Florida and Georgia, which are where most of their problems have been. So, in a sense, the 2 events are linked.
Most companies would respond to such poor performance with a change in management. At Cadence, however, the Mallory family remains in charge supported by their handpicked board, none of whom have any banking experience.
Delois commented at 3/4/2010 6:15:00 PM:
Sounds like mississippian hit one of Tony's nerves. You think Tony has stock in Cadence or is a higher up employee. Could be coincidence that the stock price dropped on the name change, but I doubt it too. NBC was well established and then when the name changed every thing started changing. Maybe the president, VP and other higher ups should volunteer to take a pay cut to show everyone that they care about the company and not their pocketbook.
overdrawn commented at 3/4/2010 7:01:00 PM:
I would think they could pay two or three workers with my overdraft charges alone.
jrm commented at 3/5/2010 7:03:00 AM:
75 percent of loans tied up in construction loans and real estate. troubled loans that is . when the everyday working man couldnt pry a loan from them. they gambled on there buddies who were in the construction business and rolled snakeyes. hope they all flip
David Holmes commented at 3/5/2010 12:25:00 PM:
I like the name Cadence! Please keep the name, don't change it!
Tony Banks commented at 3/5/2010 2:47:00 PM:
I do own Cadence stock but am not an employee. I just think it's interesting that when Lewis Mallory was at the helm and Cadence was pay it's steady .25 a share everybody took it for granted and was happy. Now all the sudden he's the village idiot. By the way, anyone know the stock range before and after the name change? My guess is it didn't move much.
I think they over reached a bit but understand wanting to expand into what were targeted as growth markets. Turns out they couldn't keep the same controls in place from a distance. I'm hanging on to my stock and hope and believe Mallory and company will turn it around soon.
So...I guess you can keep your stock or sell it. And, you can keep up the the financial markets and your own finances, or whine because Cadence charges you for not being able to simply balance your checkbook.
mississippian commented at 3/5/2010 3:56:00 PM:
Cadence announced the name change in Oct 2005. I couldn't pull the stock price prior to July 2006. The stock has dropped steadily since.
7-3-2006 - $22.26
7-2-2007 - $19.39
7-2-2008 - $11.49
7-2-2009 - $2.15
3-5-2010 - $1.55
My mother worked there all her life and now has nothing to fall back on.
tony banks commented at 3/5/2010 6:04:00 PM:
At issue is whether the name change caused the stock to drop. The stock doesn't signicficanly begin to fall until some time before July of 08. That's more than two years later. You can blame the stock drop on lots of things (including management if you like) but to look at those numbers and the timeline AND the economy at the time, especially the banking sector, and connect the name change with the stock price seems quite a stretch...just saying.
funny man commented at 3/5/2010 6:30:00 PM:
I use to have a cadence when I was in the military.
jay commented at 3/7/2010 8:15:00 AM:
I closed my accounts of 30 years because of the officers and workers not the name!
david commented at 3/7/2010 11:29:00 AM:
I left Cadence / NBC when they hired the Walker guy to work for them. I would not bank with anyone who would let that type person work for them. He treated his employees so bad when he worked with that other bank.
Me commented at 3/9/2010 9:31:00 AM:
Cadence is in trouble because of poor management. I have a business loan with Cadence on a business that went south. The loan is with other partners. I am willing to pay what I owe. Cadence is unwilling to work with me and let me make a payment I can afford. Cadence would rather foreclose on my property at a loss (huge) than to allow me to make managable payments and pay off my balance of the loan. You would think someone in much trouble as Cadence they would be willing to work with you.
Maxwell commented at 3/9/2010 2:27:00 PM:
Cadence changed its name to venture into markets in other states. I know they did that to grow the bank. Unfotunatly the economy turned south and that was catastrophic for their loan portfolio. However, on the human side, they have lost touch with their customers and their employees. They need to make a decision to be a big bank or be the best community bank they can be. I respect the Mallory family and I am sure this is breaking his heart.
LS commented at 3/11/2010 2:04:00 AM:
Get this! I moved away from Columbus, but had an account with NBC when I was in high school. I decided to keep the account,in case I need to have access to a bank while in Columbus. My atm card expired, so I called them to mail me a new one. They told me that I would have to COME IN TO A BRANCH AND SIGN PAPERS TO GET ANOTHER CARD. I asked if I could fax with a copy of my id or with a notary's signature to no available. I guess I have to fly 6000 miles just to get my debit card! LOL! I will still keep them because they've given me 15 boxes of checks, but just take all of my money out by check of course and leave $1 or so to keep them from closing it. Maybe make a .50 transaction every 90 days or so just to keep it open.
1. Coach Marsh will be remembered COLUMBUS & LOWNDES COUNTY
2. MUW continues to fly state flag COLUMBUS & LOWNDES COUNTY
3. Accused murderer arrested for shooting COLUMBUS & LOWNDES COUNTY
5. Coroner: Two weeks until remains identified COLUMBUS & LOWNDES COUNTY