Cadence Bancorporation and State Bank Financial Corporation on Sunday jointly announced a definitive merger agreement in a stock-for-stock transaction.
Cadence’s acquisition of State Bank creates a combined organization with $16 billion in assets, $12 billion in loans, $13 billion in deposits and approximately 100 branches serving Texas, Georgia, Florida, Alabama, Tennessee and Mississippi.
Cadence Mississippi President Jerry Toney told the Starkville Daily News the company is excited for what the future holds.
“Following the merger, Cadence will continue providing best in class products and services and we look forward to introducing State Bank’s specialty lines of business to clients in the Golden Triangle and beyond,” Toney said.
The move is expected to boost Cadence’s presence in the Atlanta market, as State Bank will now be under the Cadence brand, and services in the Golden Triangle will not be negatively impacted.
The merger agreement was unanimously approved by the boards of both companies.
“More to come as we begin the exciting process of merging the best practices of both banks and continuing our commitment to being among the best performing and client-responsive banks in the country,” Toney said.
Under the terms of the merger agreement, State Bank Financial Corporation shareholders will receive 1.160 shares of Cadence Class A common stock for each share of State Bank common stock, valuing the transaction at approximately $1.4 billion based on the closing share price of Cadence of $30.23 on May 11, 2018.
After closing, legacy Cadence and State Bank shareholders will collectively own approximately 65 percent and 35 percent of the combined company, respectively.
Three State Bank directors will also join the board of Cadence and of Cadence Bank.
Joe Evans, chairman of the State Bank board, will serve as vice chairman of Cadence and Tom Wiley, vice chairman of the State Bank board, will serve as a director of Cadence and Chairman of Cadence Bank.
Cadence Bank CEO Sam Tortorici will relocate to Atlanta, as Cadence Bank’s corporate headquarters will also move to Atlanta from Birmingham.
Cadence Bancorporation will remain headquartered in Houston.
Chairman and CEO of Cadence Paul B. Murphy, Jr said State Bank is an impressive organization with talented, experienced and customer-centered bankers.”
“We are pleased to combine these two strong, growing institutions which have been built on a common vision with shared values,” Murphy said. “I have enjoyed getting to know Joe, Tom and many of their bankers.”
Murphy said when the company went public a year ago, Cadence wanted to be active with mergers and acquisitions.
“We said we would be selective and that we were looking for a gem,” Murphy said. “We found a gem with State Bank. I believe this is going to be an outstanding combination. I see it as a joint win for both company’s shareholders, customers, employees and the communities we serve.”
Tortorici said State Bank brings a significant Georgia presence, which will be an important part of the new 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,” Tortorici said. “We will work together to ensure our future success in Georgia and as a leading regional banking franchise."