After six years as a privately-held company, Cadence is again publicly traded, going live on the New York Stock Exchange Thursday.
Cadence Bancorporation (CADE) raised about $150 million for its initial public offering with 7.5 million shares worth $20 each. Sam Tortorici, CEO of Cadence and president of Cadence Bancorp, said the first share traded at $22.05. Prices stayed in that general range for most of the day, and ended traded Thursday at $21.55, according to MarketWatch.
“This is an important milestone in the life of Cadence Bank,” Tortorici said. “We’re giving the public an opportunity to invest at a really positive time where Cadence’s growth and our financial momentum is really positive.”
Cadence is based in Houston, Texas, with 66 banks across the southeast, including the Golden Triangle.
Cadence Bank, N.A., a former bank based in Starkville, was publicly traded for many years until Community Bancorp, LLC, a private firm that acquired struggling banks, purchased it in 2011. Tortorici said Community assumed the Cadence name and brand shortly after acquiring Cadence.
Cadence Bank, N.A., which was active in the construction and housing loan market, struggled in the wake of housing market crash of the late 2000s. The bank posted a $110 million loss in 2009. The bank’s shares fell to as low as $2 a share in late 2010, when Trustmark National Bank made a failed attempt to purchase the bank.
Tortorici said the last few years have been a period of growth for Cadence.
“We’ve grown 17 percent compound over the last five years,” Tortorici said. “This is new capital for us to allow us to continue to grow, either organically or by acquisition.”
Jerry Toney, Mississippi president of Cadence, said Thursday’s stock offering marked a “very exciting” time for Cadence and the IPO should help fund future growth and potential acquisitions.
“As a public company, we remain as relationship-focused as ever, and we look forward to the journey ahead,” Toney said.
As Cadence continues to grow, Tortorici said, the bank will remain mindful of the Golden Triangle.
“The Golden Triangle has been a very nice part of the Cadence story since day one,” Tortorici said. “We still maintain some very nice back office support functions such as a our data center in Starkville. As Cadence continues to grow that can only mean good things for the Golden Triangle.”
Alex Holloway was formerly a reporter with The Dispatch.
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