Community Bancorp Gears Up for Acquisitions

Community Bancorp has plans to expand Cadence Financial Corp. and also invest in other banks.
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NEW YORK (

TheStreet

) -- Newly formed private equity group,

Community Bancorp

(CBC) is planning on making bolt-on acquisitions to expand

Cadence Financial Corp.

(CADE) - Get Report

and invest in or acquire other banks.

CBC recently

outbid

Trustmark

(TRMK) - Get Report

for

Cadence Financial Corp.

in a surprise $30 million deal. CBC President and Chief Executive Officer Paul Murphy Jr. said the Cadence deal was too good to pass up.

Paul B. Murphy, Jr., Chief Executive Officer and President, Community Bancorp LLC

"We really like the franchise. It had 28 years of consecutive earnings growth," Murphy said. "The core franchise was doing very well, but the expansion of the franchise was bad. It was easily fixable and the valuation was attractive"

Murphy added that he hopes to add to the institution with bolt-on acquisitions. His firm, a multi-bank holding company, has $900 million to invest, and is looking at banks and failed banks in the Southeast, Midwest, Florida, Chicago and Kansas City.

"We are looking for banks to become a part of Cadence and also opportunities for new banks in areas like Chicago for example," Murphy said.

--Written by Maria Woehr in New York.

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