Hancock Whitney Acquiring Capital One’s Trust & Asset Management Business
December 18 2017 - 8:30AM
Hancock Holding Company (Nasdaq:HBHC) today announced that its
banking subsidiary, Whitney Bank (“Hancock Whitney”), signed a
purchase agreement to acquire the bank-managed high net worth
individual and institutional investment management and trust
business from Capital One, National Association (“Capital One”), a
banking subsidiary of Capital One Financial Corporation (NYSE:COF).
“This transaction is an excellent strategic fit
with our existing Hancock Whitney wealth management group, and
illustrates the type of largely in-market, low-risk business deals
we prefer under our current M&A strategy,” said John M.
Hairston, President & CEO. “As a complement to our current
lines of business for individuals and institutions, we believe
Hancock Whitney will have one of the most talented teams of
advisors located in wealth management offices across the Gulf
South, with the opportunity to help improve our strategic goal of
enhancing noninterest income as a percent of revenue.”
Financial terms of the transaction were not
disclosed. The transaction is expected to be immediately accretive
to GAAP EPS and meets or exceeds our minimum thresholds for
Internal Rate of Return (IRR) and Return on Invested Capital
(ROIC).
The combination will position Hancock Whitney to
become a Top 50 trust firm (by revenue) in the United States with
combined annual revenue of approximately $70-$75 million, assets
under administration of approximately $26 billion and assets under
management of approximately $10 billion. Hancock Whitney had
approximately $16 billion in assets under administration and $6
billion in assets under management at September 30, 2017, and
reported trust fees of $33.5 million for the nine months ended
September 30, 2017.
A significant portion of the business being
acquired is in Louisiana and East Texas, and would secure one of
the highest market shares of investment management and trust along
the I-10 corridor from Houston to Gulfport. The company will also
maintain a presence in the New York metro area for existing and new
clients.
The transaction is expected to close during the
second quarter of 2018, after receipt of regulatory approval and
the satisfaction of other customary closing conditions. Morgan
Stanley & Co. LLC is serving as financial advisor to Hancock
Whitney and Alston & Bird LLP is serving as legal
advisor. About Hancock
Holding CompanyHancock Holding Company is a financial
services company with regional business headquarters and locations
across the Gulf South. The company’s banking subsidiary provides
comprehensive financial products and services through Hancock Bank
locations in Mississippi, Alabama, and Florida and Whitney Bank
locations in Louisiana and Texas, including traditional, online,
and mobile banking; commercial and small business banking; private
banking; trust and investment services; certain insurance services;
and mortgage services. The company also operates a loan production
office in Nashville, Tennessee. More information is available at
www.hancockwhitney.com.
Important Cautionary Statement About Forward-Looking
StatementsThis news release contains forward-looking
statements within the meaning of, and subject to the protections
of, section 27A of the Securities Act of 1933, as amended, and
section 21E of the Securities Exchange Act of 1934, as
amended. Any statement that does not describe historical or
current facts is a forward-looking statement. These statements
often include the words “believes,” “expects,” “anticipates,”
“estimates,” “intends,” “plans,” “forecast,” “goals,” “targets,”
“initiatives,” “focus,” “potentially,” “probably,” “projects,”
“outlook” or similar expressions or future conditional verbs such
as “may,” “will,” “should,” “would,” and “could.” Forward-looking
statements are based upon the current beliefs and expectations of
management and on information currently available to management.
Our statements speak as of the date hereof, and we do not assume
any obligation to update these statements or to update the reasons
why actual results could differ from those contained in such
statements in light of new information or future events.
Forward-looking statements are subject to significant risks and
uncertainties. Investors are cautioned against placing undue
reliance on such statements. Statements about the proposed merger,
including future financial and operating results may differ
materially from those set forth in the forward looking statements,
including as a result of changes in the level of business contracts
to be acquired, the ability to retain customers and employees
following closing, receipt of certain third party or regulatory
approvals and the ability to realize expected cost savings or other
synergies from the acquisition. Additional factors that could cause
actual results to differ materially from those described in the
forward-looking statements can be found in Part I, “Item 1A. Risk
Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2016 and in other periodic reports that we file with
the SEC. Such reports are available upon request from the company
or the Securities and Exchange Commission, including through the
SEC’s website at www.sec.gov.
For More InformationTrisha Voltz Carlson, EVP,
Investor Relations Manager504.299.5208 or
trisha.carlson@hancockwhitney.com
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