Encore Will Keep its Name After Sale to Cadence

Encore Bancshares (EBTX) in Houston announced Thursday that its shareholders have approved its pending sale to Cadence Bancorp.

The $1.6 billion-asset Encore also said that it would retain its name once the deal closes later this year, operating as a wholly owned subsidiary of Cadence.

Cadence, also based in Houston, was formed with roughly $1 billion in 2010 for the purpose of acquiring banks. Initially known as Community Bancorp, it bought the ailing Cadence Financial in Starkville, Miss., in early 2011 — and later took its name — and then bought a failed Alabama bank in April of last year.

Its deal for Encore, announced in February, would be its first acquisition of a healthy bank and its first in its home state. Cadence is paying $250 million for Encore, or roughly 2.4 times the seller's tangible book value.

Encore said that holders of 78% of the company's shares approved the deal.