After completing its initial public offering (IPO) two weeks ago, Cadence Bank is looking ahead with a positive vision for the company.
Cadence Bank CEO and Chairman Paul B. Murphy Jr. - a graduate of Mississippi State University - says that by going back onto the New York Stock Exchange the company will be made stronger and the banking experience that customers expect will still be the service they receive.
“The most important thing we want our clients to be aware of is that we were a strong bank before and we are even stronger now,” Murphy said.
Murphy explained that there are two main reasons that prompted the move to go public. The first one is so Cadence can obtain capital which can help further develop the company. With the capital account increasing, Murphy says Cadence can search for different ideas to do car, home and business loans.
Another reason for going public is so the company can acquire a currency in order for Cadence to construct mergers with other banks.
“Having a publicly-traded stock gives us a currency to hopefully find some good banks to partner with,” Murphy said, “And have them merge into us and be part of our company.”
Cadence Bank has a significant presence in Mississippi and plays a large role in the economic development in the Golden Triangle.
Cadence Bank’s Mississippi President Jerry Toney says Cadence Bank is one of the largest employers in the area and it plans to stay that way. With this IPO, Toney says the company can further advance and build on its customer relationships on the local level.
“We give a lot back to the community as well and we’re still and have been for many many years the largest private supporter of economic development in the entire Golden Triangle,” Toney said.
Both Murphy and Toney agree the banking industry’s trends are looking good moving forward. With interest rates increasing and the net interest margin widening, Murphy says the bank’s revenue outlook is favorable.
Both executives also said they see no trends that are worse so far following the IPO drop.
Overall, Cadence Bank’s new public traded stock “CADE” is subject to cause attractive outcomes for the company and its development.
Cadence Bank was founded in 1889 and is based out of Houston, Texas.