Parent companies of BancorpSouth Bank and Cadence Bank today announced a merger that will create a $6 billion institution that the firms calculate will be fifth-largest in the nine-state footprint, operating under the Cadence name.
Both banks operate multiple branches in Alabama.
The merger is an all-stock transaction, in which BancorpSouth investors will own about 55% and Cadence shareholders about 45% of the new institution.
The new bank will have dual headquarters in Houston, Texas, and Tupelo, Mississippi, with operations centers in Tupelo and Birmingham.
Dan Rollins will be the chairman and Chief Executive Officer and Paul Murphy will serve as executive vice chairman of the combined company. 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. “Mergers are all about people, and what’s important to note here is that our leadership teams are in sync. By joining forces, it’s easy to see that we’ll be able to make a significant impact on our customers and communities while driving long-term shareholder value.”
“I am thrilled to partner with BancorpSouth,” said Paul Murphy. “I have great respect for the franchise they have built over the last 145 years, beginning in my home state of Mississippi.”
The merger is expected to be complete in the third quarter of this year, following regulatory and shareholder approvals.
