Home » NEWS » Banking & Finance » Cadence hikes its prime rate after Fed action

Cadence hikes its prime rate after Fed action

Responding to the Federal Reserve raising its benchmark interest rate, Cadence Bank will increase its prime rate from 3.25 percent to 3.50 percent, effective Friday.

The Houston-based privately held bank formally headquarterd in Starkville said its rate hike followed the Fed  Board of Governor’s unanimous approval of an increase between 0.25 percent and 0.50 percent, an increase from near zero.  The vote marked the first time the Fed has raised its rate since December 2008.

The Fed emphasized it will likely lift it gradually thereafter in a test of the economy’s capacity to stand on its own with less support from super-easy monetary policy.

“The [Fed] expects economic conditions will evolve in a manner that will warrant only gradual increases in the fed funds rate,” the Fed said in a statement following its two-day meeting. To hammer home this point, officials added in their statement that they anticipated “gradual adjustments” in rates.

The $8.3 billion Cadence Bank, after its purchase by private investors, moved its headquarters out of Starkville to Birmingham four years ago Cadence later moved the HQ to Houston, home of the investment pool that purchased the then-publicly held bank after it got into hot water with regulators over inadequate capital ratios.

Cadence still has a significant presence in Northeast Mississippi, including back office operations in Starkville. In addition to Mississippi, it has more than 65 locations in Alabama, Florida, Tennessee and Texas.

 

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Ted Carter

Leave a Reply

Your email address will not be published. Required fields are marked *

*