8-K: Hancock Whitney to Acquire Sabal Trust Company, Expanding Florida Wealth Management Presence

Hancock Whitney Corporation announced its subsidiary, Hancock Whitney Bank, will acquire Sabal Trust Company to expand its wealth management business in Florida.

Summary

• Hancock Whitney Corporation has agreed to acquire Sabal Trust Company, a non-depository trust company based in St. Petersburg, Florida.
• The acquisition is expected to close in the second quarter of 2025, pending regulatory approvals and other closing conditions.
• Sabal Trust Company has four locations in the Tampa and Orlando metropolitan areas.
• Sabal generated $22.1 million in revenue in 2024 and had approximately $3 billion in assets under management as of December 31, 2024.
• The transaction is expected to be immediately accretive to Hancock Whitney's GAAP EPS, excluding one-time costs.
• The acquisition is expected to meet or exceed the company's minimum thresholds for Internal Rate of Return (IRR) and Return on Invested Capital (ROIC).

Sentiment

Score: 8

Explanation: The document conveys a positive outlook with the strategic acquisition expected to be accretive and expand the company's market presence. The language used is optimistic and forward-looking.

Positives

• The acquisition will expand Hancock Whitney's wealth and asset management group in the high-growth Florida market.
• The acquisition will add a strong team of advisors to Hancock Whitney's wealth and asset management business.
• The combined entity is expected to have one of the most talented teams of advisors in the Gulf South.
• The acquisition is expected to grow fee income and expand relationships with private banking, wholesale banking, and retail services offerings.
• The transaction is expected to be immediately accretive to GAAP EPS, excluding one-time costs.
• The acquisition is expected to meet or exceed the company's minimum thresholds for Internal Rate of Return (IRR) and Return on Invested Capital (ROIC).

Risks

• The acquisition is subject to regulatory approvals and other customary closing conditions.
• The actual financial and operating results of the acquisition may differ materially from the forward-looking statements.
• There are risks associated with retaining customers and employees following the closing of the acquisition.
• The ability to realize expected cost savings or other synergies from the acquisition is not guaranteed.

Future Outlook

The acquisition is expected to expand Hancock Whitney's wealth management business in Florida and is expected to be immediately accretive to GAAP EPS, excluding one-time costs. The company anticipates growth in fee income and expanded relationships with various banking services.

Management Comments

• John M. Hairston, President & CEO, stated that the transaction is an excellent strategic opportunity to expand their wealth and asset management group within the high-growth Florida market.
• John M. Hairston, President & CEO, believes that the combination will result in one of the most talented teams of advisors located across the Gulf South.

Industry Context

This acquisition reflects a trend of financial institutions expanding their wealth management services, particularly in high-growth markets like Florida. It also indicates a focus on increasing fee-based income streams.

Comparison to Industry Standards

• The acquisition of Sabal Trust Company by Hancock Whitney is similar to other regional banks acquiring trust companies to expand their wealth management offerings.
• For example, Truist Financial Corporation acquired Sterling Capital Management in 2020 to enhance its investment management capabilities.
• Similarly, other banks like Regions Financial Corporation have also made acquisitions in the wealth management space to increase their market share and fee income.
• Sabal's $3 billion in assets under management is a significant addition for Hancock Whitney, placing them in a more competitive position against other regional players in the wealth management sector.
• The expected accretion to EPS is a common goal in such acquisitions, as banks seek to improve profitability and shareholder value.

Stakeholder Impact

• Shareholders are likely to view the acquisition positively due to the expected accretion to EPS and growth opportunities.
• Employees of Sabal Trust Company may experience changes in their roles and responsibilities following the acquisition.
• Customers of Sabal Trust Company may benefit from the expanded services and resources of Hancock Whitney.
• The acquisition could lead to increased competition in the wealth management sector in Florida.

Next Steps

• The acquisition is subject to regulatory approvals and other customary closing conditions.
• The transaction is expected to close during the second quarter of 2025.

Key Dates

Keywords

acquisition, wealth management, trust company, Hancock Whitney, Sabal Trust Company, Florida, asset management, financial services, banking