Cadence pledges $20.7B in community investment

Cadence Bank in Houston has committed $20.7 billion to low- and moderate-income communities as part of the five-year community benefits plan. 

Cadence, which merged with BancorpSouth in Tupelo, Miss., last fall to create a $50 billion-asset bank, said in a press release Thursday that it worked on the plan with the National Community Reinvestment Coalition. 

The plan includes $11.8 billion in residential mortgage loans to low- and moderate-income (LMI) borrowers, LMI geographies and minorities. The bank also pledged $6.5 billion in small business loans to businesses located in LMI census tracts and companies with less than $1 million in gross annual revenues.

The commitment also includes $2.4 billion in community development lending and investments. It also features a commitment to volunteer services, grants and donations, with the possibility of new branches and products. 

"Cadence is dedicated to understanding the financial needs of its communities and providing solutions to help make them stronger," Dan Rollins, the bank’s chairman and CEO, said in the release. The plan "will strengthen our efforts to improve the places we live and work.” 

Cadence agreed in August, prior to the BancorpSouth merger, to pay a $3 million penalty and provide more than $4 million in loan subsidies to address claims of discrimination in its mortgage lending operation.