GULFPORT, Miss. - Hancock Whitney Corporation (NASDAQ:HWC), a $5.09 billion market cap financial institution, announced Monday that it has entered into an agreement to acquire Sabal Trust Company, a non-depository trust company based in St. Petersburg, Florida. The financial terms of the transaction were not disclosed.
This strategic move is aimed at expanding Hancock Whitney's wealth and asset management group within the Florida market. Sabal Trust Company, which reported revenues of $22.1 million for the year ended December 31, 2024, manages approximately $3 billion in assets. According to InvestingPro data, Hancock Whitney has demonstrated strong momentum with a 32.65% return over the past year, suggesting robust execution of its growth strategy.
John M. Hairston, President & CEO of Hancock Whitney, expressed confidence in the acquisition, stating that it would add a strong team to their wealth and asset management business and create opportunities for growth in fee income and client relationships across various banking services.
The acquisition is expected to be immediately accretive to Hancock Whitney's GAAP earnings per share, excluding one-time costs, and aligns with the company's targets for internal rate of return and return on invested capital. Trading at a P/E ratio of 13.17, the stock appears reasonably valued, while maintaining its 37-year track record of consecutive dividend payments.
Sabal Trust Company, the largest independent, employee-owned non-depository trust company in Florida, operates out of four locations within the Tampa and Orlando metropolitan statistical areas. These locations are anticipated to enhance Hancock Whitney's market share in investment management and trust business in these high-growth markets.
Pending regulatory approvals and satisfaction of customary closing conditions, the transaction is slated to finalize during the second quarter of 2025. Legal advisory services for the acquisition are being provided by Wachtell, Lipton, Rosen & Katz.
Hancock Whitney, with a history dating back to the late 1800s, offers a range of financial products and services across several states in the Southern U.S. The company emphasizes its core values of honor and integrity, strength and stability, and commitment to service.
This news is based on a press release statement and includes forward-looking statements subject to risks and uncertainties. Actual results could differ materially from those projected due to various factors, including the ability to retain customers and employees post-acquisition and to realize cost savings and synergies.
In other recent news, Hancock Whitney has been the subject of several significant developments. Raymond (NSE:RYMD) James upgraded the bank's stock rating to Strong Buy from Outperform, citing an improved outlook for loan growth, recent capital return initiatives, and solid profitability. The bank also announced a new 5% share repurchase program, signaling confidence in its financial position.
In addition, Hancock Whitney reported a third quarter net income of $116 million, a slight increase from the previous quarter, due to an expanded net interest margin and a decrease in operating expenses. The company also strategically reduced loans by $450 million, primarily due to a decrease in shared national credits exposure.
Furthermore, the bank added Moses Feagin, an executive from Alabama Power, to its board of directors, a move expected to contribute significantly to the company's future growth. DA Davidson has also adjusted its outlook on Hancock Whitney, raising the price target to $65 from $62 and reaffirming a Buy rating, highlighting the company's ability to rapidly decrease funding costs and anticipated loan growth. These are part of the recent developments that continue to shape Hancock Whitney's position in the market.
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