Hancock Whitney in Gulfport, Miss., has agreed to buy Trustmark in Jackson, Miss.
The $39 billion-asset Hancock Whitney said in a press release that it will pay $3.2 billion in stock for the $19.1 billion-asset Trustmark. The deal, which is expected to close late in the first quarter, priced Trustmark at 178% of its tangible book value.
“By bringing together two high-performing banks with shared values, complementary capabilities, and a relentless focus on client success, we create an organization that is stronger as one,” John Hairston, Hancock Whitney’s president and CEO, said in the release. “This combination enhances our platform, expands growth opportunities, strengthens the core deposit franchise, and broadens the capabilities we deliver to consumer and business clients.”
Five Trustmark directors will join Hancock Whitney’s board, including President and CEO Duane Dewey.
The transaction is expected to be 7% accretive to Hancock Whitney’s 2028 earnings per share. It should take less than three years to earn back an estimated 7% dilution to Hancock Whitney’s tangible book value.
Hancock Whitney aims to cut 35% of Trustmark’s annual noninterest expense, or $205.5 million. It expects to incur $250 million in pretax merger-related expenses.
Raymond James and Wachtell, Lipton, Rosen & Katz advised Hancock Whitney. Goldman Sachs and Covington & Burling and Brunini, Grantham, Grower & Hewes.