The Dallas bank reported sizable growth in business and mortgage lending in the second quarter, but it more than doubled its provision for loan losses to cover four credits that went into nonaccrual status.
Under a consent order with Texas and seven other states, the Atlanta-based credit reporting firm agreed to shore up its information security efforts, but it will not have to pay any financial penalties.
The Dallas company expects to report a higher loan-loss provision after the loans, which include two shared-national credits, deteriorated in the second quarter.
Cadence first discussed a deal with the Atlanta target four years ago. But negotiations picked up steam once it was clear State Bank had other suitors.
The subprime lender could lose a big partner now that Fiat Chrysler has officially announced it will form its own auto finance unit, and the two are negotiating an end to their 6-year-old relationship.
