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Hancock Whitney Corp. (NASDAQ:HWC) is one of the 10 Stocks Underperforming the Broader Market.

Shares of Hancock Whitney declined by 10.20 percent on Thursday to end at $65 apiece, following news that it would acquire Trustmark Corp. in an all-stock transaction valued at $3.2 billion.

In a statement, Hancock Whitney Corp. said that it entered into a definitive agreement with Trustmark, under which the former will issue 0.7463 shares of common stock for each outstanding share of Trustmark common stock.

Photo by Tima Miroshnichenko on Pexels

The transaction is expected to be approximately 7 percent accretive to Hancock Whitney’s 2028 estimated earnings per share, mildly dilutive to regulatory capital at close, and approximately 7 percent dilutive to tangible book value per share with earn-back in approximately 2.8 years inclusive of merger expenses.

At close, Hancock Whitney’s shareholders will own approximately 65 percent and Trustmark shareholders will own approximately 35 percent of the combined company.

Hancock Whitney Corp. President and CEO John Hairston said that the merger would unite “two strong, high-performing Mississippi-headquartered franchises with proven performance, robust liquidity, and solid capital foundations, creating a stronger platform for profitable growth.”

The combined organization is expected to deliver improved profitability, maintain strong pro-forma capital ratios, and increase the scale and resources needed to invest in high-growth markets, while continuing to support customers and communities throughout its core footprint,” he noted.

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