Bank mergers seem to be a trending event across the nation, and Louisiana is no different. In this respect, MidSouth Bank and Hancock Whitney recently announced that they will be merging. The deal is more like an acquisition, though the parties involved are referring to it as a bank merger, as Hancock and Whitney will be assuming all of MidSouth’s assets. Once the deal is complete, which is expected to occur later this year, Hancock Whitney is expected to have an additional $1.9 billion in asset, nearly $1 billion in loans, approximately $1.4 billion in deposits.
The move will allow Hancock Whitney to access a wider market across Louisiana and Texas. MidSouth currently has 42 branches in those two states. Hancock Whitney hopes to be more engaged in the housing market in the areas where MidSouth currently operates, but the full extent of the merger’s benefits may not be seen for some time to come.
Merging with or acquiring a business can be a smart business move. As is the case here, it can allow a business to easily move into new geographical location, but that’s just the tip of the iceberg. A merger or acquisition can also reduce costs, streamline operations, expand client base and operations, and increase name recognition, brand awareness, and good will. This can lead to burgeoning growth and increased profits.
There are risks associated with mergers and acquisitions, though, regardless of which side of the table a business lands. Therefore, before engaging in discussions regarding these matters, Louisiana businesses should consider consulting with a legal professional who knows the ins and outs of these processes. Only then can a business proceed with negotiation and finalization of an agreement that furthers its best interests.