Brandon Dunn, Executive Vice President of Commercial and Institutional Banking, Cadence Bank in Dallas
Brandon Dunn, executive vice president of commercial and institutional banking for Cadence Bank in Dallas,described to Invest: the ways in which Cadence Bank has strived to maintain success in a highly competitive market, as well as how economic shifts have affected the DFW’s banking industry.
What challenges has the banking industry faced in Dallas over the last few years?
It’s not unique to Dallas, but U.S. banks, in general, are seeing their revenue models being challenged. The banking industry’s ability to generate income and manage costs are changing. Disruptive forces like higher interest rates, a tight money supply and fintech startups are all reshaping our industry. Plus, new technologies like generative AI and the rampant growth of cyber fraud are also impacting banking operations.
The DFW market is extremely competitive. Banks have to work hard to differentiate themselves, whether it’s through products, pricing, structure or relationships.
What are some highlights for Cadence Bank in Dallas, and what differentiates you from other banks?
We’re experiencing a strong 2024, thus far. Last year, with issues stemming from the Silicon Valley Bank fallout, the second half of the year was quiet. But Cadence started 2024 strong out of the gate. Cadence is known for creating holistic relationships with clients. Our goal is to support them by anticipating their needs and offering the right financial solutions. We not only provide credit, but we also have other products and services in our back pocket. Client support could look like making capital commitments, mitigating interest rates or foreign exchange exposure, or providing competitive rates on deposits.
What have been a few key drivers of Cadence Bank’s recent growth?
Our DFW commercial and institutional loan portfolio includes a variety of businesses like energy companies, data centers and retail establishments. We seek out strong companies that have good fundamentals and provide a relationship-oriented, holistic banking experience for them.
Could you please provide an overview of the financial services industry in the DFW region?
The DFW banking market is unlike anything I’ve seen. It is diverse in the types of companies and industries found here. It is phenomenally competitive. We go to battle all the time, which can be challenging. Because DFW is a business-friendly region, companies are actively moving here from around the country. This adds to the competitiveness.
How are you positioning yourself to support the rapid growth happening in Dallas?
It’s all about relationships. People want to do business with people they like. We work to build solid relationships throughout client organizations. This way, we can get to know our clients, anticipate their needs and offer the right financial solutions.
Can you expound upon the current economic landscape and the strategies you’re employing to support your clients?
Inflation and interest rates are currently the major issues keeping our clients up at night. Therefore, our interest rate team advises clients about how to mitigate risk. Our foreign exchange team works closely with clients to help them reduce exposure to currency fluctuations. These are the types of conversations we have with clients daily. It’s about understanding clients’ needs and providing solutions to help them prosper moving forward.
What is your assessment of North Texas’ talent pool?
We’re at a time where Millennials and Gen Z are moving up. Plus, COVID also changed how we work. Today’s banker wants flexible working arrangements. Managing these changes has been challenging at times, but we’ve learned to do it well. DFW has a strong talent pool to draw from. It’s a great place to be if you want to work in finance.
What is your outlook for the future of local banks?
For Cadence, we are optimistic about the future and the runway ahead of us. We have terrific bankers and teammates throughout our footprint who are providing strong customer service. Plus, our loan pipelines remain strong.
How are you leveraging technology to better serve your clients?
Technology is constantly changing. We’re currently transforming our treasury management platform to better suit the needs of our business and commercial customers.
Does Cadence have any specific programs in place to support small to medium size businesses?
In June 2023, the FDIC awarded Cadence with an Outstanding rating overall and in the Investment and Service categories, and a High Satisfactory rating in the Lending category.
It is rare for the FDIC to give an “Outstanding” rating and only a limited number of banks receive it. This recognition strongly supports Cadence’s long-standing commitment to supporting and serving its communities and the small- and medium-sized businesses within them.
Also in 2023, Cadence secured funding of approximately $6.5 million in eligible grants and contributions under the Community Reinvestment Act (CRA). Other CRA-eligible investments comprise a total of over $1.13 billion, including current CRA exam period investments and still-active prior exam period investments consisting of municipal bonds, agency mortgage-backed securities, tax-credit investments and equity investments.
What are your top priorities for Cadence for the next two to three years?
In DFW, we are working hard to grow our brand and build a strong foundation of client relationships. In Houston, Cadence has done a great job of building relationships and operating boldly. We want the same for Dallas, especially since we have the right team in place to meet that objective. I am confident we are well on our way.
