Industry sells to Cadence bank. No inside knowledge but at looks like the regulatory issues and resulting financial troubles were more than they bargained for.

Industry had raised ~$195MM (iirc) to sell almost 50% of the bank last fall, but the transaction never materialized. The bond portfolio is still performing but way under the water creating significant weakness. They were under C&D and severely limited in what they could do.

For Cadence, they acquired a very stable deposit franchise and branch network that fit perfectly between their existing branches (almost zero overlap). According to the merger presentation, they are only paying $20MM. Unless the bond portfolio absolutely tanks, it could be a great deal!

Industry bond portfolio is over 1 billion current loss. They are very dependent on municipal deposit and could easily see 40-60 million walk on accounts of that nature. If that had happened they would have tipped over in less than a week.

TREX01 said:

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Industry bond portfolio is over 1 billion current loss. They are very dependent on municipal deposit and could easily see 40-60 million walk on accounts of that nature. If that had happened they would have tipped over in less than a week.

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Yup 21% of their accounts. They were paying 50bs+ more than market to keep those deposits. Cadence has already indicated that they anticipate running off $500MM in deposits. I'm guessing this is where they'll focus.