Hancock Whitney in Gulfport, Miss., has agreed to buy OFB Bancshares in Orlando, Fla.
Hancock Whitney said in a press release that it will pay $377.6 million in cash for the $2.1 billion-asset parent of One Florida Bank. The deal, which is expected to close in the third quarter, priced OFB at 200% of its tangible book value.
The acquisition “represents a significant step in our long-term growth strategy, expanding our footprint into one of the most dynamic and high-growth markets in the country,” John Hairston, Hancock Whitney’s president and CEO, said in the release.
“Orlando offers attractive demographics, strong economic fundamentals, and meaningful opportunities to deepen client relationships,” he added. “By combining our scale, capital strength, and product capabilities with the local expertise of this talented team, we believe we are well-positioned to deliver enhanced value to our clients, associates, and shareholders alike.”
Rick Pullum, OFB’s president and CEO, will lead Hancock Whitney’s operations in Orlando, Jacksonville, and the Florida Panhandle.
The transaction is expected to be immediately accretive to earnings per share, excluding one-time costs. It should take four years to earn back any dilution to Hancock Whitney’s tangible book value.
Hancock Whitney plans to cut 40% of OFB’s annual noninterest expenses, or $15.8 million. It expects to incur $30 million of merger-related expenses.
Raymond James and Wachtell, Lipton, Rosen & Katz advised Hancock Whitney. Piper Sandler and Smith Mackinnon advised OFB.