Hancock Holding (HBHC) has agreed to sell 10 Whitney Bank branches that the Gulfport, Miss., company had planned to close, as well as loans and deposits associated with the branches.
The $19.1 billion-asset Hancock had said in May that it would close up to 45 Whitney branches in areas where it has a small retail presence. That came after investors hammered Carl Chaney, president and co-CEO of Hancock, for not moving fast enough to control expenses after its $1.5 billion acquisition of Whitney in New Orleans. Hancock had originally estimated the Whitney branch closures would save it $25 million a year in expenses. Hancock did not provide an updated cost-savings estimate on Monday.
Hancock agreed to sell seven branches in the Houston area to Texas Dow Employees Credit Union, a $2 billion-asset institution in Lake Jackson, Texas. Texas Dow would also purchase $34 million of loans and $30 million of deposits.
Hancock will also sell three branches in Alexandria and Pineville, La., to the $738 million-asset Sabine Bancshares in Many, La. Sabine would also acquire $20 of loans and $30 million of deposits.
Terms of the branch sales were not disclosed. The transactions are expected to close by the end of the year. Morgan Stanley advised Hancock on the branches sales and Jones Walker was its legal adviser.