Cadence Bank in Settlements With US DOJ, Comptroller of the Currency
August 30 2021 - 4:32PM
Dow Jones News
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 stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
August 30, 2021 16:17 ET (20:17 GMT)
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