Cadence Bank (NYSE:CADE) Q3 2023 Earnings Conference Call October 24, 2023 11:00 AM ET

Company Participants

Will Fisackerly - Director of Corporate Finance

Dan Rollins - Chairman & Chief Executive Officer

Valerie Toalson - Chief Financial Officer

Chris Bagley - President

Hank Holmes - Chief Banking Officer

Billy Braddock - Chief Credit Officer

Conference Call Participants

Manan Gosalia - Morgan Stanley

Michael Rose - Raymond James

Kevin Fitzsimmons - D.A. Davidson

Catherine Mealor - KBW

Brody Preston - UBS

Brandon King - Truist

Stephen Scouten - Piper Sandler

Jon Arfstrom - RBC Capital Markets

Operator

Good day and welcome to the Cadence Bank Third Quarter 2023 Webcast and Conference Call. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Will Fisackerly, Director of Finance. Please go ahead.

Will Fisackerly

Good morning and thank you for joining the Cadence Bank third quarter 2023 earnings conference call. We have members from our Executive Management team here with us this morning, Dan Rollins; Chris Bagley, Valerie Toalson, Hank Holmes and Billy Bradd. Our speakers will be referring to prepared slides during the discussion. You can find the slides by going to our Investor Relations page at ir.cadencebank.com, where you'll find them on the link to our webcast or you can view them at the exhibit to the 8-K that we filed yesterday afternoon. These slides are also in the Presentations section of our Investor Relations website.

I would remind you that the presentation, along with our earnings release contain our customary disclosures around forward-looking statements and any non-GAAP metrics that may be discussed. The disclosures regarding these forward-looking statements contained in those documents apply to our presentation today.

And now, I'll turn it to Dan for his opening comments.

Dan Rollins

Good morning, everyone. Thank you for joining us. We would like to take some time this morning during our third quarter 2023 earnings conference call to also discuss the announcement of our agreement to sell Cadence Insurance to Arthur J. Gallagher & Company. Following our prepared remarks, our executive management team will be available for questions.

The first several slides in our deck today provide some detail regarding the sale of our insurance agency. The total deal value of nearly $1 billion represents a multiple of 5.4x the last 12 months revenue. The achievement of this multiple is a tremendous testament to the growth and accomplishments of Cadence Insurance under the leadership of Markham McKnight, Chris Boone, Aimee Kilpatrick and their entire executive team. While we've repeatedly said, we like the insurance business; the opportunity to monetize this business at historically high valuation levels is a huge win for our shareholders. It's also a tremendous win for our insurance teammates and clients with access to additional resources and product offerings of an agency with the size and scale of Gallagher. We value the relationships we've built with these teammates and we look forward to continuing to work with them in their new roles as Gallagher will be the preferred insurance partner of Cadence Bank.