Cadence Bank to Acquire Industry Bancshares, Expanding Presence Across Central and Southeast Texas

April 25, 2025 - Cadence Bank (NYSE: CADE), the leading regional financial services company, announced it signed a definitive merger agreement to purchase Industry Bancshares, Inc., an established bank holding company with its headquarters in Industry, Texas. The purchase is an important element in Cadence's growth plans, and the deal is scheduled to add the bank's presence in Central and Southeast Texas by the acquisition of 27 full-service locations.

Industry Bancshares serves as the holding company to six community banks—Bank of Brenham, Citizens State Bank, Fayetteville Bank, Industry State Bank, The First National Bank of Bellville, and The First National Bank of Shiner—each with a long history of service within their respective communities.

Strategic Growth in Key Texas Markets

Established in 1911, Industry Bancshares has established a solid foundation in some of the most vibrant and expanding markets of Texas. Through March 31, 2025 (unaudited), the company's total assets stood at $4.4 billion, total loans at $1.1 billion, and total deposits at $4.5 billion. The merger gives Cadence instant entry into a diversified and stable core deposit base that has been fostered over generations of relationship banking and strong community roots.

Dan Rollins, Cadence Bank Chairman and CEO, highlighted the cultural fit and shared commitment to community banking that supports the merger:

What makes this partnership so effective is that Cadence Bank's community banking roots are well-suited to the community emphasis of Industry Bancshares' six bank subsidiaries. We are all very committed to taking care of our customers and the communities we serve. Since we serve very similar markets throughout Texas and the South, we know the needs of these local economies and can bring greater product offerings and more lending opportunities to drive future growth.

Rollins further noted that Cadence Bank's digital offerings and technological platforms will complement Industry Bancshares' long-standing personalized service model that has characterized its relationship with customers, creating an enhanced overall banking experience.

Merger Terms and Leadership Continuity

As per the terms of the agreement, Cadence Bank will pay an amount of between $20 million and $60 million in cash, contingent on Industry Bancshares' equity capital as of closing. The deal is still pending regulatory and shareholder approvals along with standard closing conditions. One specific condition is that Industry Bancshares has to satisfy a minimum threshold for equity capital at closing. The transaction is anticipated to close in the second half of 2025.

After the completion of the transaction, a number of senior executives and staff from Industry Bancshares will remain in leadership positions in the combined entity. These are Doak Hartley, Michelle Hodge, Mike Mueller, Brent Jones, Gary Durrenberger, Kyle Holloway, Lisa Moeller, and Mike Kalina. Their continued presence will serve to provide continuity to customers and preserve the respected relationships that have been at the heart of Industry Bancshares' success.

Maintaining Community Banking Principles

For customers of Industry Bancshares' six banking subsidiaries, the merger is a chance to enjoy increased resources and still be able to receive the individual attention they have grown accustomed to. Carl J. Chaney, Industry Bancshares Executive Chairman, pointed to the common values and long-term advantages of the merger:

This merger is an exciting new era for our customers and communities. Cadence aligns with our strong commitment to establishing strong relationships and doing what is right for our customers and communities. By their size, resources, and relationship-based strategy, this merger will enable ongoing personal service and the trusted experience our customers have come to rely on.

The deal illustrates a larger trend in community banking, where institutions aim to balance scale and innovation without sacrificing the personal touch that characterizes community banking.

Advisors to the Transaction

The transaction has been unanimously approved by the Boards of Directors of Cadence Bank and Industry Bancshares. As for financial advisory assistance:

Hovde Group LLC acted as financial advisor and Alston & Bird LLP as counsel to Industry Bancshares.

UBS Investment Bank served as Cadence Bank's financial advisor and Sullivan & Cromwell LLP as legal advisor. 

This cautious and cooperative process for the merger guarantees that the transition will be properly managed and in the best interests of all parties.

About Industry Bancshares, Inc.

Based in Industry, Texas, Industry Bancshares has been serving its customers since 1911 from its group of six independent banking subsidiaries. Well established in Central and Southeast Texas, the organization has a reputation for integrity, community involvement, and financial strength. Each subsidiary bank has a strong connection with its local community, offering a complete range of banking services adapted to individuals, small businesses, and agricultural businesses.

About Cadence Bank

Cadence Bank (NYSE: CADE) is a $50 billion regional financial institution with a heritage of enabling people, businesses, and communities to thrive. With headquarters in Houston, Texas and Tupelo, Mississippi, Cadence serves over 350 locations throughout the South and Texas. The bank offers a full range of banking, investment, trust, and mortgage products and services tailored to address the needs of consumers, businesses, and corporate customers.

Aside from being one of America's Best Banks (2025) according to Forbes and ranked by U.S. News & World Report and Forbes as among the country's best employers, Cadence Bank remains to invest in technologies and services that enhance customer experience and sustain long-term growth.

To learn more, please visit www.cadencebank.com.

Cadence Bank, Member FDIC. Equal Housing Lender.

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