Hancock Whitney Acquiring Sabal Trust Company

Rhea-AI Summary

Hancock Whitney (HWC) has announced that its bank subsidiary will acquire Sabal Trust Company, a non-depository trust company based in St. Petersburg, Florida. The strategic acquisition aims to expand Hancock Whitney's wealth and asset management presence in the high-growth Florida market, particularly in the Tampa and Orlando metropolitan areas.

Sabal Trust Company generated revenues of $22.1 million in 2024 and managed approximately $3 billion in assets as of December 31, 2024. The transaction is expected to close in Q2 2025, subject to regulatory approvals. While financial terms weren't disclosed, the acquisition is projected to be immediately accretive to GAAP EPS (excluding one-time costs) and meets the company's minimum thresholds for Internal Rate of Return and Return on Invested Capital.

Positive

• Immediate accretion to GAAP EPS (excluding one-time costs)
• Expansion into high-growth Florida markets
• Addition of $3 billion in assets under management
• Integration of established revenue stream ($22.1 million in 2024)
• Meets minimum thresholds for IRR and ROIC

Negative

• None.

Insights

Financial Analyst

The acquisition of Sabal Trust Company represents a strategic move into Florida's lucrative wealth management market. With $22.1 million in 2024 revenue and $3 billion in assets under management, this deal strengthens HWC's fee-based income stream - a important factor for banking stability in volatile rate environments.

The immediate GAAP EPS accretion (excluding one-time costs) and meeting internal IRR/ROIC thresholds suggests disciplined deal pricing, likely in the 2-3x revenue range based on similar wealth management acquisitions. The Tampa and Orlando MSAs are experiencing strong population growth and wealth accumulation, providing natural tailwinds for AUM expansion.

For a simple explanation: Think of this like buying a profitable business that manages money for wealthy clients in a growing area. It's like adding a successful car dealership to your existing network, but instead of cars, they're selling investment management services. The deal will start making money right away and was bought at a fair price.

Market Research Analyst

Florida's wealth management landscape presents significant growth opportunities, particularly in the targeted Tampa-St. Petersburg and Orlando markets. These regions have seen substantial influx of high-net-worth individuals, especially following the pandemic-driven migration from northern states. The median household income in these MSAs has grown faster than the national average.

By acquiring an established player with $3 billion AUM, Hancock Whitney gains immediate market credibility and a client base that would have taken years to build organically. The cross-selling potential for private banking and other services to Sabal's wealthy client base represents a significant revenue synergy opportunity.

In simpler terms: HWC is buying a trusted local business that serves wealthy clients in Florida's fastest-growing wealthy areas. It's like buying a popular restaurant with loyal customers rather than building a new one from scratch and trying to attract diners.

Strategic Acquisition Will Expand Wealth Management Line of Business and Strengthen Commitment to Central Florida

GULFPORT, Miss.--(BUSINESS WIRE)-- Hancock Whitney Corporation (Nasdaq: HWC) (“the Company”) today announced that Hancock Whitney Bank, its wholly owned bank subsidiary, entered into an agreement to acquire the non-depository trust company, Sabal Trust Company (“Sabal”), based in St. Petersburg, Florida.

"This transaction is an excellent strategic opportunity to expand our wealth and asset management group within the high-growth Florida market and to add a strong team to our wealth and asset management business,” said John M. Hairston, President & CEO. “With the combination, we believe Hancock Whitney will have one of the most talented teams of advisors located across the Gulf South, and the opportunity to grow fee income and expand relationships with private banking, wholesale banking, and retail services offerings.”

Financial terms of the transaction were not disclosed. The transaction is expected to be immediately accretive to GAAP EPS excluding one-time costs and meets or exceeds the Company’s minimum thresholds for Internal Rate of Return (IRR) and Return on Invested Capital (ROIC).

The business being acquired has four locations within the greater Tampa, Florida and Orlando, Florida metropolitan statistical areas (“MSAs”), and would build the Company’s market share of investment management and trust business in these high-growth markets.

Sabal earned revenues of $22.1 million in the year ended December 31, 2024, and had assets under management of approximately $3 billion at December 31, 2024.

The transaction is expected to close during the second quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions. Wachtell, Lipton, Rosen & Katz is serving as legal advisor.

About Hancock Whitney

Since the late 1800s, Hancock Whitney has embodied core values of Honor & Integrity, Strength & Stability, Commitment to Service, Teamwork, and Personal Responsibility. Hancock Whitney offices and financial centers in Mississippi, Alabama, Florida, Louisiana, and Texas offer comprehensive financial products and services, including traditional and online banking; commercial and small business banking; private banking; trust and investment services; healthcare banking; and mortgage services. The company also operates combined loan and deposit production offices in the greater metropolitan areas of Nashville, Tennessee and Atlanta, Georgia. More information is available at www.hancockwhitney.com.

About Sabal Trust Company

Sabal Trust Company is the largest independent, employee-owned non-depository trust company in Florida. Sabal Trust Company is headquartered in St. Petersburg, Florida, and has additional offices in Tampa, Sarasota, and the Villages, Florida and has assets under management of approximately $3 billion. Sabal Trust Company provides trust administration, investment management, retirement planning, estate settlement, and family office services. More information is available at www.sabaltrust.com.

Forward-Looking Statements

This 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 acquisition, 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, 2024 and in other periodic reports that we file with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250121698899/en/

For more information

Kathryn Shrout Mistich, VP, Investor Relations Manager

504.539.7836 or kathryn.mistich@hancockwhitney.com

Source: Hancock Whitney Corporation

FAQ

What is the expected closing date for HWC's acquisition of Sabal Trust Company?

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

How much revenue did Sabal Trust Company generate in 2024?

Sabal Trust Company earned revenues of $22.1 million in the year ended December 31, 2024.

What is the total assets under management that HWC will acquire from Sabal Trust?

Sabal Trust Company had approximately $3 billion in assets under management as of December 31, 2024.

How will the Sabal Trust acquisition affect HWC's earnings per share?

The transaction is expected to be immediately accretive to GAAP EPS, excluding one-time costs.

Which markets will HWC expand into through the Sabal Trust acquisition?

The acquisition will expand HWC's presence in the Tampa and Orlando metropolitan statistical areas (MSAs) in Florida.