Tax Credit Investments for CRA

Patterson Warehouse

Community-driven investments harness the power of tax credits to revitalize communities. 

In an era where community development initiatives are pivotal for neighborhood revitalization, tax credit investments are vital for banks to foster sustainable projects. Cadence Bank is committed to leveraging tax credits to accelerate impactful ventures. Here's how tax credits work and ways Cadence Bank is using them to make strategic investments in shaping viable communities.

Understanding Tax Credits
Tax credits can be a financial lifeline for projects struggling to secure traditional funding. Unlike deductions or exemptions, which indirectly lower tax liabilities, credits directly reduce tax bills, offering a tangible incentive for investors. These credits can be used immediately or in the future, providing flexibility to investors. Cadence Bank specializes in underwriting and investing in three main types of tax credits: Low-Income Housing Tax Credits (LIHTCs), Historic Tax Credits (HTCs) and New Markets Tax Credits (NMTCs). 

Working Together: Job Creation and Community Impact
Established in 2018, Cadence’s Tax Credit Department has been instrumental in optimizing the bank's investments to revitalize communities across its footprint. The department witnessed unprecedented success in 2023, closing 15 investments totaling over $150 million in tax credit equity commitments, with more anticipated closures on the horizon. 

“Our tax credit department is committed to identifying and supporting impactful projects and initiatives within our nine-state footprint. These efforts are crucial to our vision of serving the communities we work in by fostering economic development and creating jobs,” explains Cadence Bank Senior Vice President & Director of Tax Credit Investments Will Shurtleff. “By focusing on underserved communities, these projects help people thrive by providing new opportunities at every stage. This type of investment is essential for driving sustainable growth, reducing economic disparities, and empowering individuals to achieve long-term success.”

Some recent projects underscore the value these investments are bringing to local communities.

Veterans Recovery Resources 
To address pressing societal challenges, Cadence Bank partnered with Veterans Recovery Resources (VRR) to support veteran rehabilitation and mental health services. VRR, a 501(c)(3) organization, embarked on the acquisition and renovation of an 18,000-square-foot historic schoolhouse in Mobile, Alabama. The primary goal of this project is to establish a Clinically Managed Detoxification and Residential treatment program aimed at reducing substance use disorders (SUDs), co-occurring conditions and veteran suicides in South Alabama. With 55 total jobs created, Veterans Recovery Resources not only provides employment opportunities but also offers a lifeline to those who have served our nation. 

Patterson Warehouse

Photo courtesy of Patterson Warehouses.

Patterson Warehouses 
Patterson Warehouses’ new 711,000-square-foot facility in Memphis, Tennessee, in which Cadence Bank invested, is significant to economic growth and job creation in the area – with 185 jobs created as a result of the project. Patterson Warehouses is one of the largest third-party logistics companies in Memphis and offers a complete range of distribution and fulfillment services. What sets Patterson Warehouses apart is its focus on value-added services, including pick-pack, assembly and kitting, labeling, cross-docking, quality inspection and reverse logistics. These services enhance operational efficiency and create a diverse array of employment opportunities. Like Cadence, the company is committed to investing its resources in Memphis. It plans to halt operations at two other facilities in Southaven and Horn Lake, Mississippi, once the leases expire and relocate those functions to Memphis, according to the Memphis Business Journal. This commitment and investment to building in Memphis is critical to economic development in the region.

Cold-Link Logistics
Cadence Bank’s investment in Cold-Link Logistics, one of the fastest-growing full-service cold storage and logistics companies in the U.S., involves a groundbreaking project that will create 200 jobs in rural Mississippi and reflects the bank’s ongoing commitment to rural economic empowerment. The project encompasses the construction of a 197,000-square-foot, Class A, Safe Quality Food-certified facility in Ellisville, Mississippi, meeting a crucial demand for cold storage in the area. This state-of-the-art facility will feature QFR Zone® blast-freezing technology to quickly freeze palletized products more efficiently while saving energy. It also features 22 truck dock doors, freezer warehouse space, electrical and maintenance rooms and a two-story office complex. This new facility will contribute to the current and future growth of the region’s food supply chain and create vital employment opportunities.

Linking the Community Reinvestment Act (CRA) and Tax Credit Reinvestments
The Community Reinvestment Act (CRA), enacted in 1977, requires banks to invest in developing low- and moderate-income communities (LMIs) – but beyond being a requirement, it’s the right thing to do. Tax credit investments align seamlessly with CRA objectives, targeting activities related to affordable housing, community services, and economic development and revitalization. 

Cadence’s commitment to CRA compliance and tax credit reinvestments is reflected in its efforts, focusing on areas with the greatest community development needs. In 2023, the bank received an Outstanding overall and in the Investment and Service categories, as well as High Satisfactory in Lending. This recognition solidifies Cadence’s long-standing mission of supporting and serving its communities.

Through strategic partnerships and investments, the bank continues to shape a future where investments pave the way for economic progress.


This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.

Photo courtesy of Patterson Warehouses.

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