BancorpSouth Bank of Tupelo, Mississippi, said Monday that it is acquiring Cadence Bank N.A. of Houston in an all-stock deal that will create a regional bank, branded as Cadence Bank, with more than $40 billion assets.
BancorpSouth operates 45 offices in Arkansas and is the eighth-largest bank in the state ranked by deposits ($1.8 billion as of mid-2020).
“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,” BancorpSouth CEO Dan Rollins said in a news release. “This strategic merger will allow us to expand our reach and offerings with minimal overlap in our existing branch network.”
Rollins will be chairman and CEO of the combined company. Cadence CEO Paul Murphy will be executive vice chairman. The board of directors will comprise 20 directors, 11 from BancorpSouth and nine from Cadence, the companies said.
“The scale of our combined bank, our collective talent, our similar cultures and our footprint in some of the fastest-growing markets in the country have us extremely excited about the future,” Murphy said.
Both companies’ boards have approved the deal, which is set to close in the fourth quarter. Under the agreement, Cadence shareholders will receive 0.70 shares of BancorpSouth for each share of Cadence they own. The deal also allows for a one-time cash dividend to Cadence shareholders of $1.25 per share in conjunction with the closing of the merger.
BancorpSouth shareholders will own about 55% of the combine company; Cadence shareholders will own about 45%.
The bank will have dual headquarters in Tupelo and Houston, with operations centers in Tupelo and Birmingham, Alabama, as well as specialty sites in Macon, Georgia; Starkville, Mississippi; and Houston.
BancorpSouth has branches in operations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas. Cadence has operations in Alabama, Florida, Georgia, Mississippi, Tennessee and Texas.
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