Cadence Bank in Settlements With US DOJ, Comptroller of the Currency

By Stephen Nakrosis

Cadence Bancorporation on Monday said it entered separate settlements with the U.S. Department of Justice and the Office of the Comptroller of the Currency to "resolve historical allegations that it violated fair lending laws in Houston, Texas."

Under the terms of the settlement with the OCC, the bank will pay a civil penalty of $3 million to the Treasury, Cadence said. Under the terms of the DOJ settlement, Cadence said, the bank will invest $4.17 million to increase credit opportunities to residents of majority-Black and Hispanic neighborhoods and "will devote $1.38 million toward advertising, community outreach, and credit repair and education." The bank will also open a full-service branch in a majority-Black and Hispanic neighborhood in Houston and employ a director of community lending and development, Cadence said.

Paul B. Murphy, Jr., Cadence Bancorporation's chairman & chief executive, said the company believes it acted in compliance with fair lending laws. "Following a Houston-based bank acquisition in mid-2012, we recognized that the mortgage lending program was not where we wanted it to be," he said, adding, "We subsequently developed and successfully implemented a coordinated set of efforts to sustainably increase our lending in majority-minority census tracts and minority neighborhoods in Houston."

Also on Monday, the company said it expects to complete its upcoming merger with BancorpSouth Bank in the fourth quarter of this year.

Cadence Bancorporation is the parent company of Cadence Bank, N.A.

Write to Stephen Nakrosis at [e-mail]

(END) Dow Jones Newswires

August 30, 2021 16:17 ET (20:17 GMT)

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