Nov 12 (Reuters) - US regional lender Hancock Whitney will buy smaller peer Trustmark in a roughly $3.2 billion all-stock deal, the Mississippi-based banks announced on Thursday.
The deal will strengthen Hancock Whitney's presence across the southeastern states, creating a combined Gulf South-focused bank with roughly $58 billion in assets, amid growing consolidation in the US regional banking industry.
Here are more details:
• Trustmark shareholders will receive 0.7463 shares of Hancock Whitney for each Trustmark share held, valuing the smaller bank at $54.02 per share, an 18.6% premium to its last close
• Hancock Whitney shares slipped 10% in premarket trading, while Trustmark rose 5.5% in light volumes
• "This combination enhances our platform, expands growth opportunities, strengthens the core deposit franchise, and broadens the capabilities we deliver to consumer and business clients," Hancock Whitney CEO John Hairston said
• Stephens analyst Matt Olney said the timing of the deal was somewhat surprising given Hancock Whitney just closed the One Florida Bank acquisition and deployed a considerable portion of its excess capital
• The Democratic midterm sweep could boost dealmaking as corporate boardrooms look to get agreements done under a friendly regulatory regime, according to banking executives
• The deal, expected to close in late 2027, is estimated to boost Hancock Whitney's 2028 profit per share by roughly 7%, according to the banks
• Raymond James advised Hancock Whitney and Goldman Sachs advised Trustmark on the deal
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Jonathan Ananda)