Trustmark National Bank today announced that it has entered into
a definitive agreement to sell its wholly owned subsidiary, Fisher
Brown Bottrell Insurance, Inc., (“FBBINSURANCE”) to Marsh
& McLennan Agency LLC for $345 million in cash. Trustmark
National Bank is a wholly owned subsidiary of Trustmark Corporation
(NASDAQGS: TRMK).
Transaction Highlights
- The sale of FBBINSURANCE, among the five largest
bank-affiliated insurance brokerages in the nation and one of the
largest agencies in the Southeast, is expected to allow Trustmark
to capitalize on the strong valuation premiums in the insurance
brokerage sector. The $345 million transaction value represents
approximately 5.9 times FBBINSURANCE’s 2023 revenue and 28.0
times net income.
- Estimated after-tax proceeds of $228 million are expected to be
used to reposition Trustmark’s balance sheet to increase earnings,
elevate profitability, and enhance capital.
Duane A. Dewey, President and CEO of Trustmark, stated,
“Trustmark entered the insurance brokerage business 25 years ago.
Since then, the agency has grown from a single office in Jackson to
ten offices across Mississippi, Alabama, and Florida to become one
of the largest bank-affiliated insurance brokerages in the country,
and one of the largest in the Southeast. The FBBINSURANCE
team has done a tremendous job of building a premier agency through
their dedication to providing risk management solutions and
unparalleled service to their clients. With the quality of our team
and the strength Marsh McLennan Agency brings to bear, we look
forward to working with them in a new capacity.”
Scott Woods, President of FBBINSURANCE, commented,
“Trustmark has been an outstanding partner, supporting our growth
and development. This next chapter in the life of the agency will
serve as a catalyst for greater benefits for our clients and new
opportunities for our associates as we gain enhanced access to
MMA’s global resources. They are a world-class agency that is
committed to their culture, customers, communities, and associates,
and we look forward to joining their team.”
Peter Krause, President and CEO of Marsh McLennan Agency’s
Southeast region, commented, “FBBINSURANCE’s strong regional
presence, client-focused approach, and terrific leadership were
very attractive as we looked for a high-quality agency to expand
our presence in the Southeast. I look forward to working with Scott
and the entire FBBINSURANCE team in delivering best-in-class
solutions that address the growing risk management and benefit
needs of businesses and individuals in the region.”
FBBINSURANCE anticipates that the transaction, which is
subject to standard closing conditions and regulatory approval,
will close by the end of the second quarter of 2024. In connection
with the sale, current leadership and employees of
FBBINSURANCE are expected to join Marsh McLennan Agency.
Morgan Stanley & Co. LLC and KPMG served as financial
advisors and Covington & Burling LLP and Brunini, Grantham,
Grower & Hewes PLLC served as legal counsel to Trustmark.
About Trustmark
Trustmark is a financial services company providing banking and
financial solutions through offices in Alabama, Florida, Georgia,
Mississippi, Tennessee and Texas.
About FBBINSURANCE
FBBINSURANCE is among the five largest bank-affiliated
insurance agencies in the U.S. and one of the largest agencies in
the southeast, focusing on commercial, personal, and employee
benefits insurance and surety. Headquartered in Jackson,
Mississippi, FBBINSURANCE has 10 offices across Mississippi,
Florida and Alabama and is licensed and doing business in all 50
states.
Forward-Looking Statements
Certain statements contained in this document constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. You can identify
forward-looking statements by words such as “may,” “hope,” “will,”
“should,” “expect,” “plan,” “anticipate,” “intend,” “believe,”
“estimate,” “predict,” “project,” “potential,” “seek,” “continue,”
“could,” “would,” “future” or the negative of those terms or other
words of similar meaning. You should read statements that contain
these words carefully because they discuss our future expectations
or state other “forward-looking” information. These forward-looking
statements include, but are not limited to, statements relating to
anticipated future operating and financial performance measures,
including net interest margin, credit quality, business
initiatives, growth opportunities and growth rates, among other
things, and encompass any estimate, prediction, expectation,
projection, opinion, anticipation, outlook or statement of belief
included therein as well as the management assumptions underlying
these forward-looking statements. You should be aware that the
occurrence of the events described under the caption “Risk Factors”
in Trustmark’s filings with the Securities and Exchange Commission
(SEC) could have an adverse effect on our business, results of
operations and financial condition. Should one or more of these
risks materialize, or should any such underlying assumptions prove
to be significantly different, actual results may vary
significantly from those anticipated, estimated, projected or
expected.
Risks that could cause actual results to differ materially from
current expectations of Management include, but are not limited to,
actions by the Board of Governors of the Federal Reserve System
(FRB) that impact the level of market interest rates, local, state,
national and international economic and market conditions,
conditions in the housing and real estate markets in the regions in
which Trustmark operates and the extent and duration of the current
volatility in the credit and financial markets, changes in the
level of nonperforming assets and charge-offs, an increase in
unemployment levels and slowdowns in economic growth, changes in
our ability to measure the fair value of assets in our portfolio,
material changes in the level and/or volatility of market interest
rates, the impacts related to or resulting from bank failures and
other economic and industry volatility, including potential
increased regulatory requirements, the demand for the products and
services we offer, potential unexpected adverse outcomes in pending
litigation matters, our ability to attract and retain
noninterest-bearing deposits and other low-cost funds, competition
in loan and deposit pricing, as well as the entry of new
competitors into our markets through de novo expansion and
acquisitions, economic conditions, changes in accounting standards
and practices, including changes in the interpretation of existing
standards, that affect our consolidated financial statements,
changes in consumer spending, borrowings and savings habits,
technological changes, changes in the financial performance or
condition of our borrowers, greater than expected costs or
difficulties related to the integration of acquisitions or new
products and lines of business, cyber-attacks and other breaches
which could affect our information system security, natural
disasters, environmental disasters, pandemics or other health
crises, acts of war or terrorism, and other risks described in our
filings with the SEC.
Although we believe that the expectations reflected in such
forward-looking statements are reasonable, we can give no assurance
that such expectations will prove to be correct. Except as required
by law, we undertake no obligation to update or revise any of this
information, whether as the result of new information, future
events or developments or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240423522949/en/
Trustmark Investor Contacts: Thomas C. Owens Treasurer
and Principal Financial Officer 601-208-7853
F. Joseph Rein, Jr. Senior Vice President 601-208-6898
Trustmark Media Contact: Melanie A. Morgan Senior Vice
President 601-208-2979
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