Cadence Bancorp Completes IPO
Cadence Bancorp, the parent company of restaurant lender Cadence Bank, raised $150 million by selling 7.5 million shares at $20, on April 12. Cadence Bancorp is listed on the NYSE under the symbol CADE. Goldman Sachs, J.P. Morgan, Sandler O'Neill and Keefe Bruyette Woods acted as lead managers on the deal. The stock was trading at $21.62 as this article was posted.
The Monitor talked with Cadence CEO Sam Tortorici while he was at the NYSE on opening day of trading.
“This is validation of the Cadence’s strength as a bank,” he said. “And now this will give us more capital to deploy.”
That validation comes as Cadence Bank has had a compound annual growth of 17 percent over the last few years, he said. Totorici joined Cadence from Regions Bank in 2011 because “it was a chance to build something special from the ground up, and I think that’s what our restaurant team saw in it, too.”
Randy Schultz, executive vice president of specialized industries at Cadence and Dan Holland, executive vice president of restaurant banking, followed Totorici from Regions. The restaurant portfolio is significant for the bank, making up about 12 percent of the organization’s assets, Totorici said.
In the beginning, Cadence raised about $1 billion, with the charge of scooping up distressed banks after the recession left a large impact on the banking industry. As time went on, the strategy changed to becoming a strong regional bank. Today, Cadence has 65 locations in Texas and the Southeastern United States.