Back to top

Image: Bigstock

Hancock Whitney (HWC) Enters Into Relationship With Cetera

Read MoreHide Full Article

In a bid to offer its clients enhanced broker-dealer and investment advisory services, Hancock Whitney Corporation (HWC - Free Report) enters a strategic relationship with one of the largest independent broker-dealers in the country, Cetera Financial Group.

Per the relationship agreement, Hancock Whitney Investment Services, Inc. — the wholly-owned subsidiary of Hancock Whitney, and a registered broker-dealer and an SEC Registered Investment Advisor — will transition its client investment services business to Cetera. Pending regulatory approval, it will operate under the name Hancock Whitney Financial Consultants.

Hancock Whitney Investment will continue operations as a limited broker-dealer for corporate and municipal underwriting.

With the relationship, only Hancock Whitney’s broker-dealer and registered investment advisor operations will be affected. The relationship with Cetera will not affect HWC’s trust and asset management division.

HWC expects the transition to become effective in the second half of this year, following regulatory approvals.

Hancock Whitney’s chief wealth management officer, Miles Milton, stated, “Providing our clients a best-in-class, advice based experience is our priority and core to our organization’s century-old commitment to service. The opportunity to work with Cetera aligns very well with our strategic vision and direction. This relationship will support us in meeting our clients’ investment needs through superior broker-dealer and investment advisory services, enhanced products and digital user experiences, and more opportunities to help clients grow and protect their assets.”

LeAnn Rummel, the president and CEO of Cetera’s financial institutions community, said, “We are thrilled to partner with Hancock Whitney to enrich client service, enhance the financial consultant experience, and elevate Hancock Whitney’s successful business to new heights. We look forward to collaborating to offer our Advice-Centric Experience to Hancock Whitney clients, helping them achieve their version of financial wellbeing through all stages of life.”

Our Take

Hancock Whitney remains well-positioned for growth, supported by its strategic expansion initiatives, and a solid loans and deposit balance. The company’s revenues (on a tax-equivalent basis) have increased, witnessing a compound annual growth rate of 6.9% over the last six years (2016-2021).

HWC’s investments in growth and new markets are expected to bolster its top line and help in achieving an efficiency ratio of 55% by the end of fourth-quarter 2022.

Over the past six months, shares of Hancock Whitney have rallied 25.9% compared with 15.5% growth of the industry.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Currently, Hancock Whitney sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Consolidations in the Finance Sector

In a bid to counter the low-interest-rate environment, several companies from the finance space are undertaking consolidation efforts to improve competencies.

A few days back, Truist Financial Corporation’s (TFC - Free Report) subsidiary, Truist Insurance Holdings, Inc., inked an agreement to acquire Kensington Vanguard National Land Services. The deal is expected to close in first-quarter 2022.

Truist Insurance is the sixth-largest insurance brokerage firm in the United States. Kensington Vanguard, headquartered in New York, is a national title insurance agency and one of the largest independent service providers.

The transaction is expected to aid Truist Insurance in expanding its business in title insurance. The existing title operation of Trist Insurance is BridgeTrust Title, which will likely be integrated with Kensington Vanguard.

Likewise, in order to enhance mergers and acquisition advisory service competencies in the digital-infrastructure sector, Citizens Financial Group, Inc. (CFG - Free Report) announced an agreement to acquire all assets of DH Capital LLC.

The move marks Citizens Financial’s third acquisition over the past few months to augment its corporate advisory team. In September 2021, CFG closed the buyout of Willamette Management Associates, whereas, in November, it acquired JMP Group.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Citizens Financial Group, Inc. (CFG) - free report >>

Hancock Whitney Corporation (HWC) - free report >>

Truist Financial Corporation (TFC) - free report >>

Published in