Cadence Bancorporation is merging with State Bank Financial Corporation in a deal valued at roughly $1.4 billion.
The deal, according to a Reuters report, received approval from both banks’ boards on Sunday. Cadence announced the merger with a press release that noted the merger will create a regional bank organization with about 100 branches in Alabama, Georgia, Florida, Mississippi, Tennessee and Texas.
Cadence has several locations throughout Mississippi, including in the Golden Triangle. State Bank, according to the company’s website, has Mississippi locations in northwest, central and south Mississippi.
According to the Cadence release, State Bank shareholders will receive 1.160 shares of Cadence Bancorporation Class A common stock for each share of State Bank common stock. The transaction is valued at $1.4 billion, based on Cadence’s May 11 closing price of $30.23 per stock. State Bank’s shares, according to Reuters, closed at $33.08.
When the deal is finalized, Cadence shareholders will own 65 percent of the combined company, and State Bank shareholders will own 35 percent.
The move comes slightly more than a year after Cadence went public on the New York Stock Exchange. The company’s stock ended the first day of trading on April 13, 2017 at $21.55.
Cadence Bancorporation Chairman and CEO Paul B. Murphy Jr. said in the release that he’s excited about the merger.
“We are excited to announce that two great companies are joining forces. State Bank is an impressive organization with talented, experienced and customer-centered bankers,” Murphy said. “When we went public a year ago, we said we wanted to be active with (mergers and acquisitions). We said we would be selective and that we were looking for a gem.
“We found a gem with State Bank. I believe this is going to be an outstanding combination,” he added. ” I see it as a joint win for both company’s shareholders, customers, employees and the communities we serve.”
State Bank board Chairman Joe Evans will serve as Cadence’s vice chairman once the deal closes. Tome Willey, vice chairman of the State Bank board, will serve as a director of Cadence Bancorporation and Chairman of Cadence Bank.
“We are excited to be partnering with Cadence,” Evans said in a statement. “From this incredible combination of talents and resources will emerge a truly exceptional bank that will be a formidable competitor in the dynamic markets we serve.”
Cadence Bank CEO Sam Tortorici will relocate to Atlanta, Georgia. Cadence Bank’s headquarters, likewise, will move to Atlanta from Birmingham, Alabama. Cadence Bancorporation, according to the release, will remain headquartered in Houston.