Dive Brief:
- Gulfport, Mississippi-based Hancock Whitney Corp. will acquire OFB Bancshares and its subsidiary, One Florida Bank, in a $377.6 million, all-cash deal set to close in the third quarter, the banks said Friday.
- The transaction will give Hancock Whitney five locations in the Orlando area and one in the Florida Panhandle. That marks an expansion in central Florida, where the Mississippi bank’s presence is much sparser than on the state’s Gulf Coast, where it counts dozens of branches.
- Adding One Florida will also boost $35.5 billion-asset Hancock Whitney’s bottom line with an extra $2.1 billion in assets, $1.9 billion in deposits and $1.7 billion in loans.
Dive Insight:
Hancock Whitney CEO John Hairston heralded the One Florida deal Friday as a “significant step in our long-term growth strategy,” calling Orlando a “dynamic and high-growth” market.
“Orlando offers attractive demographics, strong economic fundamentals, and meaningful opportunities to deepen client relationships,” Hairston said. “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.”
Until now, the Mississippi bank, which counts 186 locations in five states that abut the Gulf, has flourished in western Florida markets such as Tampa and Tallahassee but has yet to boast a robust footprint in the state’s central and Atlantic regions.
The One Florida transaction would boost by about 30% the Florida-based loans and deposits that Hancock Whitney holds.
Hancock Whitney intends to retain One Florida President and CEO Rick Pullum, who will lead the combined bank’s Orlando, Jacksonville and Panhandle markets, according to an investor presentation.
“We are proud of the franchise we’ve built in the Orlando market, grounded in strong client relationships and community engagement,” Pullum said in a release Friday. “Partnering with Hancock Whitney allows us to accelerate that momentum while gaining access to broader resources, expanded capabilities and a larger platform for growth.”
The combination requires the approval of OFB shareholders, who will meet in mid-July to vote on the deal.
“We believe joining our two companies – both with comparable cultures and similar core values – will further strengthen the full spectrum of financial choices and the superior service our clients expect and deserve,” Pullum and OFB CEO and Chair Randy Burden wrote in a letter to shareholders Friday.
Hancock Whitney, meanwhile, will incur a one-time, $30 million pretax expense for the combination but estimates the acquisition will generate $15.8 million in annual cost savings, according to the investor presentation.
Hancock Whitney is increasingly leaning on Florida as a source of growth by acquisition. The Mississippi bank last year bought St. Petersburg-based Sabal Trust Company, which counts more than $3 billion in assets under management and also does business in the Orlando area.
