Hancock Whitney, the parent company of Hancock Whitney Bank, has agreed to acquire MidSouth Bancorp, the parent company of MidSouth Bank, in a stock-for-stock transaction.
Image: Hancock Whitney has agreed to acquire MidSouth Bancorp. Photo: courtesy of adamr / FreeDigitalPhotos.net.
MidSouth Bank provides a full range of banking services to commercial and retail customers in Louisiana and Texas. At present, MidSouth Bank operates 42 locations in Louisiana and Texas.
Hancock Whitney president and CEO John Hairston said: “The merger fits perfectly with our stated strategies of adding scale and enhancing value through in-market, financially accretive, low-risk transactions that strengthen our current franchise and provide opportunities for future growth.”
The transaction, which is in line with Hancock Whitney’s M&A strategy, is mainly an in-market acquisition of $1.7bn in assets. The balance sheet includes around $900m in high-yielding loans, $1.4bn of low-cost deposits and a footprint that enables significant cost savings.
MidSouth’s franchise will provide Hancock Whitney with increased opportunities for growth in several of its current markets such as their home market of Lafayette in Louisiana, as well as chances for expansion into new markets such as Louisiana and Texas.
As per terms of the deal, each share of MidSouth Bancorp common stock will be converted to the right to secure 0.2952 shares of Hancock Whitney common stock. The conversion ratio is said to reflect a per share value of $12.75 per MidSouth common share.
Subject to the satisfaction of certain customary closing conditions, the deal is expected to be completed with a simultaneous systems conversion in late third quarter of this year.
MidSouth president and CEO Jim McLemore said: “We have much in common with Hancock Whitney, including a shared culture of client focus and relationship banking.
“This merger will provide our customers, employees, and shareholders the benefits of scale it would have taken years for us to accomplish independently.”
Hancock Whitney provides a range of financial products and services, including traditional and online banking, commercial and small business banking, trust and investment services, healthcare banking, certain insurance services and mortgage services.