According to a recent release by South State Bank, a definitive agreement has been signed with Park Sterling Corporation, holding company for Park Sterling Bank.
The release also states, “Combining the two companies will create a $14.5 billion in assets franchise operating throughout the Carolinas, Virginia and Georgia.”
While both boards have reportedly approved the merger unanimously, the merger will actually begin transitioning in the fourth quarter of 2017 and continue with systems conversions into the first quarter of 2018 after approvals by regulatory boards and shareholders. At that time, Park Sterling Corporation will be merged into South State Corporation, and Park Sterling’s bank subsidiary, Park Sterling Bank, will be merged into South State’s bank subsidiary, South State Bank.
James C. Cherry, CEO of Park Sterling Corporation, commented on the merger stating, “Our team is proud to be partnering with South State to create what we believe will come to be recognized as the preeminent regional community banking franchise in the Southeast. This combination will substantially fulfill our vision of truly becoming big enough to have the talent and services necessary to help customers achieve their financial aspirations while still remaining small enough and passionate enough to care that they do.”
After the companies merge, Cherry will be appointed to the combined company’s board of directors in addition to another individual to be mutually agreed upon and named at a later date.
As of now, Park Sterling Bank has over 50 branches across North Carolina, South Carolina, Virginia, and Georgia. According to South State’s release, “under the terms of the agreement, shareholders of Park Sterling Corporation will receive 0.14 shares of South State common stock for each share of Park Sterling common stock. The aggregate consideration is valued at approximately $690.8 million in the aggregate, based on 53,112,726 shares of Park Sterling common stock outstanding as of March 31, 2017 and on South State’s April 26, 2017 closing stock price of $91.90.”