BancorpSouth, Cadence Bancorporation on verge of wrapping up merger deal
BancorpSouth Bank and Cadence Bancorporation, the parent company of Cadence Bank, have secured the final approval for their previously announced merger, which has come from the US Federal Deposit Insurance Corporation (FDIC).
The approval from FDIC follows approvals by the Mississippi Department of Banking and Consumer Finance and shareholders of both the bank holding companies.
BancorpSouth Bank is a regional bank based in Tupelo, Mississippi. It has nearly $24 billion in assets and around 305 branches alongside additional mortgage, loan production, and insurance offices in Alabama, Louisiana, Mississippi, Arkansas, Florida, Missouri, Texas, and Tennessee.
On the other hand, Cadence Bancorporation is based in Houston, Texas. It had $18.7 billion in assets as of 31 December 2020.
Cadence Bank operates 98 branches in Alabama, Florida, Georgia, Mississippi, Texas, and Tennessee.
The merger between BancorpSouth Bank and Cadence Bancorporation, which was announced in April 2021, is set to close on 31 October 2021, subject to the meeting of the customary closing requirements.
Paul Murphy – Executive Vice Chairman of the combined company (l) and Dan Rollins (r). Photo courtesy of BancorpSouth.
When the merger closes, it will create a major Texas and Southeastern regional bank with a total market value of over $6 billion.
Dan Rollins — BancorpSouth CEO, who will lead the enlarged company in the same role, said: “We’re pleased to have received regulatory approval for this transformational merger.
“BancorpSouth and Cadence both enter into this merger from a position of strength and will create a company serving some of the most highly attractive markets in the United States. A combination of this scale provides the opportunity to deliver long-term value for our teammates, customers, communities and shareholders.”
As per the terms of the deal, Cadence Bancorporation’s shareholders will exchange each of their shares in the company for 0.7 of BancorpSouth Bank’s shares. In addition to that, a one-time special cash dividend of $1.25 per share will be paid to the former’s shareholders in conjunction with the closing of the deal.
BancorpSouth Bank’s shareholders will hold around 55% in the combined company, while Cadence Bancorporation’s shareholders will own the remaining 45%.
The enlarged US bank holding company will have two headquarters — Tupelo in Mississippi and Houston, Texas. The primary operations centers will be in Tupelo and Birmingham in Alabama.
After the conclusion of the merger, BancorpSouth Bank will be renamed Cadence Bank and its ticker symbol will be changed from BXS to CADE on the New York Stock Exchange (NYSE).