December 18, 2017

Hancock Whitney Acquiring Capital One’s Trust & Asset Management Business

The transaction provides the opportunity for Hancock Whitney to become a Top 50 trust firm in the United States

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 Company
Hancock 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.

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