US regional bank Hancock Whitney strikes around $3.2 billion deal for Trustmark

Nov 12 (Reuters) - US regional lender Hancock Whitney HWC.O will buy smaller peer Trustmark TRMK.O in a roughly $3.2 billion all-stock deal, the Mississippi-based banks announced on Thursday.

The deal will strengthen Hancock Whitney's presence across the southeastern states, creating a combined Gulf South-focused bank with roughly $58 billion in assets, amid growing consolidation in the US regional banking industry.

Here are more details:

• Trustmark shareholders will receive 0.7463 shares of Hancock Whitney for each Trustmark share held, valuing the smaller bank at $54.02 per share, an 18.6% premium to its last close

• Hancock Whitney shares slipped 10% in premarket trading, while Trustmark rose 5.5% in light volumes

• "This combination enhances our platform, expands growth opportunities, strengthens the core deposit franchise, and broadens the capabilities we deliver to consumer and business clients," Hancock Whitney CEO John Hairston said

• Stephens analyst Matt Olney said the timing of the deal was somewhat surprising given Hancock Whitney just closed the One Florida Bank acquisition and deployed a considerable portion of its excess capital

• The Democratic midterm sweep could boost dealmaking as corporate boardrooms look to get agreements done under a friendly regulatory regime, according to banking executives

• The deal, expected to close in late 2027, is estimated to boost Hancock Whitney's 2028 profit per share by roughly 7%, according to the banks

• Raymond James advised Hancock Whitney and Goldman Sachs advised Trustmark on the deal