US-based Cadence Bancorporation has signed an agreement with State Bank Financial to combine their operations to create a leading commercial bank in the country.
For each share of State Bank common stock, its shareholders will receive 1.160 shares of Cadence Bancorporation Class A common stock, valuing the transaction at about $1.4bn based on the closing share price of Cadence of $30.23 on 11May 2018.
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Once the transaction is closed, Cadence and State Bank shareholders will own nearly 65% and 35% of the combined company, respectively.
The united banking entity will have $16bn in assets, $12bn in loans, $13bn in deposits and approximately 100 branches across Texas, Georgia, Florida, Alabama, Tennessee and Mississippi.
Under the agreement, three directors of State Bank will join the board of Cadence and of Cadence Bank. Joe Evans, chairman of the State Bank board, will assume the role of vice chairman of Cadence while Tom Wiley, vice chairman of the State Bank board, will take the role director of Cadence and chairman of Cadence Bank.
Additionally, Cadence Bank CEO Sam Tortorici will move to Atlanta. Cadence Bank’s corporate headquarters will also relocate to Atlanta from Birmingham; however, Cadence Bancorporation will remain headquartered in Houston.
Cadence Bank CEO Sam Tortorici said: “State Bank brings a significant Georgia presence, which will be an important part of our combined company. I look forward to relocating to the vibrant Atlanta area, where I have spent significant time over my banking career, and to working with the experience and expertise of State Bank’s business leaders. We will work together to ensure our future success in Georgia and as a leading regional banking franchise.”
Unanimously approved by the boards of both companies, the merger is subject to customary approvals by regulators and the shareholders of State Bank. It is likely to close during the fourth quarter of 2018.
