Bank changes name to Cadence

The National Bank of Commerce, hoping to move forward in a strong, steady way, has decided to change its identity.

Lewis F. Mallory Jr., chairman and CEO of the bank, announced Tuesday all banks owned by NBC Capital Corp. will become Cadence. He said the change distinguishes the bank from more than 300 other banks within a 500-mile radius of its target market also operating under the name NBC Bank.

"For us to continue to grow we had to take on a new identity," Mallory told a group of about 65 community leaders during a news conference in front of the bank's University Drive location. "The qualities we wanted to keep in the name are strong and reliable."

The nearly 120-year-old bank would have identity and possible legal problems if it continued to operate under NBC Bank when it expanded into new markets with many others banks with the same name, Mallory said.

Branding strategy

The name change was part of an overall marketing and business strategy, said Mallory, who was inducted into the Mississippi Business Hall of Fame earlier this year. The name change will also unify all of the bank's subsidiaries under one name.

Jason Lueg, a marketing professor at Mississippi State University, said the brand name for companies helps remind customers about the type of quality they expect to receive from the business. It also reminds customers of the quality of service they'll receive.

"Branding helps show your target customers what you stand for and why they should choose you over another brand," Lueg said.

Mallory said the new name reflects a "little bit of sizzle" while maintaining a steady, rhymic march forward.

"We're changing our name but we're not changing the institution," he said.

The company will open its newest location under the Cadence name on Oct. 17 in Birmingham.

Although the bank's locations will changed their name Tuesday, the holding company will continue as NBC Capital Corp. At the spring 2006 annual meeting, the company will seek approval from shareholders to change to Cadence Financial Corp.

NBC Capital Corp., a $1.42 billion financial holding company, provides banking, trust, mortgage, insurance and investment services in Mississippi, Tennessee and Alabama.

If shareholders approve the name change, the new listing on the American Stock Exchange will be CFY.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.