BancorpSouth Bank and Cadence Bancorporation, the parent company of Cadence Bank, N.A., announced their proposed merger has received final Federal Deposit Insurance Corporation (“FDIC”) approval. The FDIC approval follows recent approvals from the Mississippi Department of Banking and Consumer Finance and from shareholders of both companies.
The merger, originally announced on April 12, 2021, is scheduled to close at 11:59 pm CDT on October 31, 2021, subject to the satisfaction of customary closing conditions. Upon closing, the merger will create the sixth-largest bank headquartered in the combined nine-state footprint, with a presence in seven of the top 10 largest metropolitan statistical areas therein.
“We’re pleased to have received regulatory approval for this transformational merger,” said BancorpSouth Chairman and CEO Dan Rollins, who will lead the combined company in the same capacity. “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.”
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The combined company will have dual headquarters in Tupelo, Miss. and Houston, Texas, with primary operations centers in Tupelo, Miss. and Birmingham, Ala. Following the closing of the merger, BancorpSouth will change its name to Cadence Bank and the company’s ticker symbol will change from BXS to CADE on the New York Stock Exchange.
Branch locations for both companies will continue to operate under their respective names until full integration is complete, which is anticipated to take place in the second half of 2022. Until integration, customers will not experience any changes to their banking and should continue using their current branches, checks, bank cards, online banking and other banking services. Signage and documents will begin to reflect the Cadence Bank name following the integration of the companies’ banking systems.
“We have great respect for Dan and what his management team has accomplished at BancorpSouth,” said Cadence Bancorporation Chairman and CEOÂ Paul B. Murphy, Jr., who will become executive vice chairman of the combined company. “This merger will leverage the respective strengths of both institutions, enhancing our ability to serve all stakeholders with a stronger, more comprehensive offering of products and services for customers. In getting to know many of the great team of bankers at BancorpSouth, it’s clear that, together, we have a great opportunity ahead of us.”
Cadence shareholders will receive 0.70 shares of BXS for each share of CADE they own. Additionally, the agreement allows for a one-time special cash dividend to CADE shareholders of $1.25 per share in conjunction with the closing of the merger.
“Combining our two successful banks provides the opportunity to better meet customers’ needs, allowing us to invest in new innovative digital offerings and deepen our relationship-focused service,” Rollins said. “Our complementary cultures and talented professional bankers will position us to create an unparalleled financial services experience. I truly believe we are much stronger together.”
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