Financial Advertising Account is Born
Steve’s breakdown: It’s another mid-sized bank merger and you know what that means. A lot of people are going to have to be told about the news. All new ads will have to be shot. It’s a new ball game and everyone’s got new uniforms.
HOUSTON, TX & ATLANTA, GA: Cadence Bancorp said it had agreed to buy State Bank Financial in an all-stock deal valued at about $1.4 billion, signaling a potential rise in regional bank consolidation in the United States.
The agreement, approved by the boards of both banks, will create an entity with $16 billion in assets and about 100 branches in Alabama, Florida, Georgia, Mississippi, Tennessee, and Texas, the banks said in a press release.
Investors expect a wave of mergers among mid-sized banks as U.S. lawmakers work to rewrite banking rules enacted after the 2007-2009 financial crisis. These changes would likely raise the limit on what is considered a systemically important financial institution, which had hampered some banks from merging.
Lawmakers also are tinkering with older bank rules, emboldened by President Donald Trump’s vow to loosen banking restrictions.
State Bank shareholders will receive 1.160 shares of Cadence class A common stock for each State Bank share, Cadence said in a statement. Cadence shares closed at $30.23 on Friday, while State Bank shares closed at $33.08.
Cadence and State Bank shareholders will collectively own about 65 percent and 35 percent of the combined company, respectively, after the deal is closed.