US bank holding companies CenterState Bank Corporation and South State have signed an all-stock merger of equals agreement in a move to create a major regional bank in the US Southeast with a total market value of around $6bn.
Headquartered in Florida, CenterState Bank Corporation is the parent company of CenterState Bank, a nationally chartered bank with $17bn in assets.
The bank offers retail, commercial, wealth management, mortgage, and small business administration (SBA) services in Florida, Georgia and Alabama and neighbouring states. It is also said to have a national presence, catering to clients coast to coast via its correspondent banking division.
South State, which is headquartered in South Carolina, holds nearly $15.9bn in assets. It is the parent company of South State Bank, which has been operating since 1934.
The bank offers consumer, commercial, wealth management, and mortgage services across the Carolinas, Georgia, and Virginia.
Post-merger, the combined banking company will operate as South State Bank and will be based in Winter Haven, Florida. The enlarged bank will have nearly $34bn in assets and deposits of $26bn.
It is expected to have a significant footprint in Columbia and Charleston in South Carolina, Charlotte in North Carolina, and Atlanta in Georgia.
CenterState’s current CEO John Corbett will be the CEO of the enlarged company, while Robert Hill, Jr., his counterpart at South State, will be the executive chairman.
Robert Hill, Jr. said: “We are excited to partner with CenterState.
“We have great respect for John, the management team and the company CenterState has built. This is a great combination of cultures, which will create tremendous value for our shareholders.”
Terms of CenterState, South State merger
As per the terms of the merger, CenterState’s shareholders will exchange each of their shares with 0.3001 shares of South State’s common stock.
Post-merger, CenterState’s shareholders will own nearly 53%, while South State’s shareholders will own the remaining stake of about 47% in the combined bank holding company.
The merger will be subject to fulfilment of customary closing conditions such as receipt of approval by shareholders of both the firms along with customary regulatory approvals. The closing of the transaction is likely to occur in the third quarter of 2020.
