BancorpSouth and Cadence to combine in transformational merger

BancorpSouth Bank and Cadence Bancorporation, the parent company of Cadence Bank, N.A., jointly announced that they have entered into a merger agreement under which the companies will combine in an all-stock merger with a total market value of more than $6 billion to create a leading Texas and Southeastern regional bank.

Under the terms of the merger agreement, which was unanimously approved by the boards of directors of both companies, 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. BancorpSouth shareholders will own approximately 55% and Cadence shareholders will own approximately 45% of the combined company.

The company will combine the aesthetics of both brands and logos and operate as Cadence Bank. The bank will have dual headquarters in Tupelo, Mississippi and Houston, with operations centers in Tupelo and Birmingham, Alabama, as well as specialty sites in Macon, Georgia, Starkville, Mississippi and Houston.

Dan Rollins will be the chairman and CEO 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. “This strategic merger will allow us to expand our reach and offerings with minimal overlap in our existing branch network.”

“I am thrilled to partner with BancorpSouth,” added 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.”