September 21, 2010 10:21:00 AM
Cadence Bank officials are keeping mum on the future of the company this week, just days after a deadline passed for the bank to meet federal capital standards.
The bank had until Sept. 19 to raise total capital to at least 12 percent of risk-weighted assets and have Tier 1 capital at least equal to 9 percent of adjusted total assets, or it could be required to sell or merge, according to a May consent order from the Office of the Comptroller of the Currency, which regulates the bank.
Cadence Bank Chairman and CEO Lewis Mallory Jr. on Friday released a statement saying the bank is still attempting to raise capital.
"Cadence Bank continues to pursue its capital raising efforts," Mallory said. "Contacts with capital markets and constructive discussions with regulators are continuing on an ongoing basis. Presently, Cadence maintains capital levels above the well-capitalized standards published by banking regulatory agency. Liquidity levels at Cadence significantly exceed peer bank liquidity. We remain focused on serving our customers as we have for over ... 120 years and returning Cadence Bank to profitability."
Cadence Bank Chief Financial Officer Richard Haston said the bank is in a required quiet period and cannot comment any further. Cadence Bank Assistant Vice President and Advertising and Communications Director Donna Rupp also declined to comment due to the bank''s S-1 filing with the Securities and Exchange Commission and the required quiet period.
Rupp did, however, deny rumors about the bank being taken over by the Federal Deposit Insurance Corporation. She also wanted to let the public know the bank is not closed.
"All I can tell you is we''re still open," Rupp said. "We''re still in business."
Rupp and Haston said they are unsure what happens now that the Sept. 19 deadline has passed. Attempts to get additional information from federal banking regulators were unsuccessful.
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