CenterState, South State merger to create $6bn bank in US Southeast
CenterState, South State merger : CenterState Bank’s parent company CenterState Bank Corporation and South State Bank’s holding company South State Corporation have signed an all-stock merger of equals deal to create the eight largest bank headquartered in the US Southeast with a total market value of nearly $6 billion.
According to the terms of the merger agreement, shareholders of CenterState Bank Corporation will be issued 0.3001 shares of South State Corporation’s common stock for each of their shares.
After the CenterState, South State merger, shareholders of CenterState Corporation will own about 53% in the enlarged bank holding company. The current shareholders of South State Corporation will own the remaining stake of around 47%.
CenterState Bank is a Florida-based nationally chartered bank that holds $17 billion in assets. The chartered bank serves Florida, Alabama, Georgia and surrounding states with retail, commercial, mortgage, wealth management, and small business administration services.
On the other hand, the South Carolina-based South State Corporation has about $15.9 billion in assets under management. Its banking subsidiary – the South State Bank has been serving the Carolinas, Georgia, and Virginia since 1934 with consumer, commercial, mortgage, and wealth management services to customers and communities in the Carolinas, Virginia, and Georgia.
CenterState, South State merger : (L-R) Robert R. Hill, Jr., South State Corporation CEO, and John C. Corbett, CEO of CenterState Bank. Photo courtesy of Business Wire.
Once the deal is completed, the combined bank will operate under the brand South State Bank and with headquarters in Winter Haven, Florida. The enlarged banking entity will have $34 billion in assets under management and $26billion in deposits.
John Corbett, the current CEO of CenterState Bank will be the CEO of the merged entity. On the other hand, Robert Hill, Jr., the present CEO of the South State Bank will take over as the executive chairman of the combined banking firm.
Robert R. Hill, Jr., commenting on the CenterState, South State merger, said: “We are excited to partner with CenterState. We have great respect for John, the management team and the company CenterState has built. This is a great combination of cultures, which will create tremendous value for our shareholders.”
CenterState, South State merger is expected to close in Q3 2020, should it fulfill customary closing conditions like approval by shareholders of both the bank holding companies apart from receiving mandated regulatory approvals.