Cadence Bancorporation and Atlanta-based State Bank Financial Corp. are set to merge by the fourth quarter this year in a $1.4 billion transaction, according to a report from the Birmingham Business Journal.
The transaction will create a combined organization with $16 billion in assets, $12 billion in loans, $13 billion in deposits and approximately 100 branches serving Texas, Georgia, Florida, Alabama, Tennessee and Mississippi.
Cadence Bank CEO Sam Tortorici will relocate to Atlanta as Cadence Bank’s corporate headquarters move to Atlanta from Birmingham. Cadence Bancorporation, the bank’s holding company, will remain headquartered in Houston.
Cadence established its headquarters in Birmingham after its acquisition of Superior Bancorp in the wake of its failure. The bank is the sixth largest in metro Birmingham based on local deposits, with a market share of $1.84 billion.
Company leaders said the deal will give the bank a substantial presence in Georgia.
“State Bank brings a significant Georgia presence, which will be an important part of our combined company,” Sam Tortorici, CEO of Cadence Bank told the newspaper. “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. We will work together to ensure our future success in Georgia and as a leading regional banking franchise.”
The merger agreement was unanimously approved by the boards of both companies, and closing is subject to customary approvals by regulators and the shareholders of State Bank.