BancorpSouth Bank and Cadence Bancorporation have announced plans to merge, subject to regulatory and shareholder approval.
If approved, the combined entity will be valued at more than $6 billion and have a nine-state footprint across Texas and the Southeast.
The merger is expected to close in the fourth quarter of 2021.
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In a joint statement, the two firms said that the merged company will combine the aesthetics of both brands and logos and operate as Cadence Bank. That entity will have dual headquarters in Tupelo, Miss. and Houston, Texas – with additional operations centers in Tupelo, Miss. and Birmingham, Ala. as well as specialty sites in Macon, Ga., Starkville, Miss., and Houston, Texas.
Under the terms of the merger agreement, which was unanimously approved by the boards of directors of both companies, Dan Rollins will be the combined firm’s chairman and chief executive officer and Paul Murphy will serve as executive vice chairman.
Meanwhile, the board of directors will initially be comprised of 20 directors – 11 from BancorpSouth and nine from Cadence.
“Cadence has built an impressive commercial banking franchise that when combined with the strengths of our team at BancorpSouth seems to be a perfect fit,” said Rollins. “This strategic merger will allow us to expand our reach and offerings with minimal overlap in our existing branch network. Culturally speaking, our mission and values align really well together.”
“I am thrilled to partner with BancorpSouth,” said Murphy. “I have great respect for the franchise they have built over the last 145 years, beginning in my home state of Mississippi. “The BancorpSouth community banking franchise is top tier and complements Cadence’s expertise in middle-market commercial banking seamlessly. We look forward to delivering significant value to our shareholders, driven by meaningful synergies and our shared banking philosophy to put the client first.”