Cadence Bancorp to acquire State Bank Financial in $1.4bn deal

By Pouyan Broukhim

US commercial bank Cadence Bancorp has announced that it has agreed to acquire regional counterpart State Bank Financial in an all-stock deal, valued at $1.4bn.

Cadence will use the acquisition to consolidate its position in southeast America, with the combined company to become responsible for $16bn in assets, $12bn in loans, $13bn in deposits, and 100 banking branches across Texas, Georgia, Florida, Alabama, Tennessee and Mississippi.

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“We are excited to announce that two great companies are joining forces,” said Paul Murphy Jr, Chairman and CEO of Cadence.

“I believe this is going to be an outstanding combination. I see it as a joint win for both company’s shareholders, customers, employees and the communities we serve.”

As part of the merger, Joe Evans, Chairman of the Board at State Bank, and Tom Wiley, Vice Chairman of the Board at State Bank, will take up executive positions within Cadence Bank, whilst Cadence will move its corporate headquarters from Birmingham to Atlanta.

“State Bank brings a significant Georgia presence, which will be an important part of our combined company,” said Cadence Bank CEO Sam Tortorici.

“I look forward to relocating to the vibrant Atlanta area, where I have spent significant time over my banking career, and to working with the experience and expertise of State Bank’s business leaders.”

The merger that has already been approved by the Board of Directors at both companies is expected to complete in Q4 2018.

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