Core Viewpoint - Hancock Whitney Corp. (HWC) shares are performing well, trading near a 52-week high of $63.82, with a 12.3% increase over the past three months, outperforming the industry and Zacks Finance sector, but underperforming close peers [1][9]. Financial Performance - HWC's net interest income (NII) has a compound annual growth rate (CAGR) of 4.5% over five years ending in 2024, driven by higher rates and loan growth [6]. - The net interest margin (NIM) expanded to 3.37% in 2024 from 3.34% in 2023 and 3.26% in 2022, with continued growth in the first half of 2025 [6][10]. - Total revenues (TE) experienced a CAGR of 3.5% from 2019 to 2024, while total loans saw a CAGR of 1.9% during the same period [9]. Growth Initiatives - The company has launched a multi-year organic growth plan, focusing on hiring revenue-generating associates and expanding its presence in Florida and Texas, which is expected to enhance fee revenues [8]. - HWC's bond restructuring, asset repricing, and balance sheet deleveraging strategies are anticipated to support NIM [7]. Balance Sheet Strength - As of June 30, 2025, HWC had total debt of $1.26 billion and cash and cash equivalents of $1.12 billion, indicating a strong liquidity position [10]. - The common equity tier 1 ratio and total capital ratio were 14.03% and 15.87%, respectively, well above regulatory requirements, reflecting a robust capital position [12]. Dividend and Share Repurchase - In January 2025, HWC announced a 12.5% increase in its quarterly dividend to 45 cents per share, with an annualized dividend growth rate of 11.6% over the past five years [12]. - The company has a share repurchase plan authorizing the buyback of 4.3 million shares through December 31, 2026, with approximately 3.21 million shares remaining available as of June 30, 2025 [15]. Analyst Sentiment - The Zacks Consensus Estimate for earnings is $5.60 per share for 2025 and $5.90 for 2026, indicating growth of 5.3% and 5.4%, respectively [17][20]. - HWC's forward price-to-earnings (P/E) ratio is 10.82X, below the industry average, suggesting potential for upside [20]. Competitive Position - HWC's return on equity (ROE) stands at 11.21%, slightly below the industry's 11.64%, indicating room for improvement in capital allocation efficiency [23]. - Compared to peers, Bank OZK has a higher ROE of 13.24%, while F.N.B. Corp has a lower ROE of 7.94% [25]. Future Outlook - The anticipated rate cut by the Federal Reserve is expected to bolster HWC's NII and NIM, supporting loan growth and profitability [5][26]. - Overall, HWC's strategic initiatives and strong financial metrics position it favorably for potential investment opportunities [27].

Part I [ITEM 1. Financial Statements](index=7&type=section&id=ITEM%201.%20Financial%20Statements) This section presents unaudited consolidated financial statements and detailed notes for Hancock Whitney Corporation, covering balance sheets, income, comprehensive income, equity, and cash flows [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show changes in assets, liabilities, and equity between June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :----- | | Total Assets | $35,212,652 | $35,081,785 | +$130,867 | | Loans, net | $23,148,561 | $22,980,565 | +$168,000 | | Securities available for sale | $5,636,676 | $5,161,491 | +$475,185 | | Interest-bearing bank deposits | $604,236 | $939,306 | -$335,070 | | Total Deposits | $29,046,612 | $29,492,851 | -$446,239 | | Total Liabilities | $30,847,233 | $30,954,149 | -$106,916 | | Total Stockholders' Equity | $4,365,419 | $4,127,636 | +$237,783 | [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income detail revenues, expenses, and net income for the six months ended June 30, 2025 and 2024 | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :----- | | Total Interest Income | $797,902 | $849,229 | -$51,327 | | Total Interest Expense | $251,038 | $312,628 | -$61,590 | | Net Interest Income | $546,864 | $536,601 | +$10,263 | | Provision for Credit Losses | $25,387 | $21,691 | +$3,696 | | Total Noninterest Income | $193,315 | $177,025 | +$16,290 | | Total Noninterest Expense | $421,038 | $413,738 | +$7,300 | | Net Income | $233,035 | $223,169 | +$9,866 | | Diluted EPS | $2.69 | $2.55 | +$0.14 | | Dividends Paid per Share | $0.90 | $0.70 | +$0.20 | [Consolidated Statements of Comprehensive Income](index=10&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The consolidated statements of comprehensive income present net income and other comprehensive income components for the six months ended June 30, 2025 and 2024 | Metric | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change | | :------------------------------------------------ | :------------------------------------ | :------------------------------------ | :----- | | Net Income | $233,035 | $223,169 | +$9,866 | | Net change in unrealized loss on securities AFS, cash flow hedges and equity method investment (before tax) | $157,783 | $(98,151) | +$255,934 | | Other comprehensive income (loss) net of income taxes | $136,265 | $(36,809) | +$173,074 | | Comprehensive Income | $369,300 | $186,360 | +$182,940 | [Consolidated Statements of Changes in Stockholders' Equity](index=11&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This statement outlines changes in stockholders' equity, including net income, OCI, dividends, and stock repurchases, from December 31, 2024, to June 30, 2025 | Metric | Balance, December 31, 2024 (in thousands) | Net Income (in thousands) | Other Comprehensive Income (in thousands) | Dividends Declared (in thousands) | Repurchase of Common Stock (in thousands) | Balance, June 30, 2025 (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------ | :---------------------------------------- | :------------------------------- | :--------------------------------------- | :------------------------------------ | | Total Stockholders' Equity | $4,127,636 | $233,035 | $136,265 | $(78,614) | $(60,464) | $4,365,419 | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows detail cash movements from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 | Cash Flow Activity | 6 Months Ended June 30, 2025 (in thousands) | 6 Months Ended June 30, 2024 (in thousands) | Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :----- | | Net cash provided by operating activities | $229,985 | $271,713 | -$41,728 | | Net cash (used in) provided by investing activities | $(109,236) | $28,924 | -$138,160 | | Net cash used in financing activities | $(183,157) | $(361,011) | +$177,854 | | Net decrease in cash and due from banks | $(62,408) | $(60,374) | -$2,034 | | Cash and due from banks, ending | $512,502 | $500,828 | +$11,674 | [Notes to Unaudited Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited consolidated financial statements [1. Basis of Presentation](index=13&type=section&id=1.%20Basis%20of%20Presentation) This note describes the basis for preparing the unaudited, condensed financial statements under GAAP, relying on management estimates - Financial statements are unaudited, condensed, and prepared under GAAP, relying on management estimates, with **no material changes** to critical accounting policies or estimates during the period[27](index=27&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [2. Acquisition](index=13&type=section&id=2.%20Acquisition) This note details the acquisition of Sabal Trust Company, including consideration paid, assets acquired, and related costs - On May 2, 2025, the Company acquired Sabal Trust Company for **$114.5 million in cash** to expand its investment management and trust business[31](index=31&type=chunk)[33](index=33&type=chunk) | Acquisition Impact (in thousands) | Amount | | :-------------------------------- | :----- | | Consideration paid | $114,488 | | Net assets acquired | $44,537 | | Goodwill | $69,951 | | Identifiable intangible assets | $41,800 | - Acquisition-related costs of approximately **$5.9 million** were incurred during the three and six months ended June 30, 2025[35](index=35&type=chunk) [3. Securities](index=15&type=section&id=3.%20Securities) This note provides information on the Company's investment securities, including fair values, unrealized losses, and liquidity management | Securities (in thousands) | June 30, 2025 Fair Value | December 31, 2024 Fair Value | Change | | :-------------------------------- | :------------------------- | :------------------------- | :----- | | Securities Available for Sale | $5,636,676 | $5,161,491 | +$475,185 | | Securities Held to Maturity | $2,083,072 | $2,233,526 | -$150,454 | | Total Gross Unrealized Losses (AFS) | $486,411 | $615,672 | -$129,261 | | Total Gross Unrealized Losses (HTM) | $148,592 | $202,306 | -$53,714 | - The Company invests only in **investment-grade securities**, primarily U.S. agency and municipal, with **zero expectation of nonpayment** for held-to-maturity securities backed by the U.S. government[42](index=42&type=chunk) - At June 30, 2025, the Company had **adequate liquidity** and did not plan to liquidate securities with unrealized losses before amortized cost recovery[48](index=48&type=chunk) [4. Loans and Allowance for Credit Losses](index=18&type=section&id=4.%20Loans%20and%20Allowance%20for%20Credit%20Losses) This note details loan categories, allowance for credit losses, and asset quality metrics, including nonaccrual loans and past due loans | Loan Category (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Commercial non-real estate | $9,760,733 | $9,876,592 | -$115,859 | | Commercial real estate - owner occupied | $3,136,182 | $3,011,955 | +$124,227 | | Commercial real estate - income producing | $3,940,309 | $3,798,612 | +$141,697 | | Construction and land development | $1,219,514 | $1,281,115 | -$61,601 | | Residential mortgages | $4,057,307 | $3,961,328 | +$95,979 | | Consumer | $1,347,705 | $1,369,845 | -$22,140 | | **Total Loans** | **$23,461,750** | **$23,299,447** | **+$162,303** | | Credit Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Allowance for loan losses | $313,189 | $318,882 | -$5,693 | | Reserve for unfunded lending commitments | $27,100 | $24,053 | +$3,047 | | **Total allowance for credit losses** | **$340,289** | **$342,935** | **-$2,646** | | Total Nonaccrual Loans | $94,922 | $97,335 | -$2,413 | | Loans 90 days past due and still accruing | $58,702 | $21,852 | +$36,850 | - The allowance for credit losses calculation at June 30, 2025, weighted Moody's baseline economic forecast at **50%** and the downside S-2 scenario at **50%**, reflecting continued market stress[62](index=62&type=chunk) - Reportable modified loans to borrowers experiencing financial difficulty (MEFDs) **decreased to $75.3 million** at June 30, 2025, from $99.5 million at December 31, 2024[66](index=66&type=chunk) [5. Investments in Low Income Housing Tax Credit Entities](index=30&type=section&id=5.%20Investments%20in%20Low%20Income%20Housing%20Tax%20Credit%20Entities) This note discusses the Company's investments in affordable housing limited partnerships and their immaterial financial impact - Investments in affordable housing limited partnerships totaled **$37.5 million** at both June 30, 2025, and December 31, 2024[85](index=85&type=chunk) - The net impact of the low-income housing tax credit program was **not material** to the Consolidated Statements of Income or Cash Flows[85](index=85&type=chunk) [6. Short term borrowings](index=30&type=section&id=6.%20Short%20term%20borrowings) This note provides details on the Company's short-term borrowing activities, including FHLB advances and repurchase agreements | Short-Term Borrowings (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :----------------------------------- | :------------ | :---------------- | :----- | | FHLB advances | $400,000 | $0 | +$400,000 | | Securities sold under agreements to repurchase | $534,627 | $638,715 | -$104,088 | | Federal funds purchased | $110,300 | $300 | +$110,000 | | **Total Short-Term Borrowings** | **$1,044,927** | **$639,015** | **+$405,912** | [7. Derivatives](index=30&type=section&id=7.%20Derivatives) This note outlines the Company's derivative instruments, including notional amounts, fair values, and credit risk features | Derivative Type (in thousands) | June 30, 2025 Notional Amount | December 31, 2024 Notional Amount | | :----------------------------- | :------------------------------ | :-------------------------------- | | Total derivatives designated as hedging instruments | $2,102,500 | $1,827,500 | | Total derivatives not designated as hedging instruments | $5,372,021 | $5,565,032 | | **Total Derivatives** | **$7,474,521** | **$7,392,532** | | Derivative Fair Value (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :----------------------------------- | :------------ | :---------------- | :----- | | Total derivative assets | $121,090 | $150,253 | -$29,163 | | Total derivative liabilities | $118,519 | $160,623 | -$42,104 | | Net derivative assets/(liabilities) | $2,571 | $(10,370) | +$12,941 | - The Company's derivative instruments contain credit risk-related contingent features, with **no violations** at June 30, 2025[111](index=111&type=chunk) [8. Stockholders' Equity](index=36&type=section&id=8.%20Stockholders'%20Equity) This note details changes in stockholders' equity, common shares outstanding, stock repurchases, and accumulated other comprehensive income | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total Stockholders' Equity | $4,365,419 | $4,127,636 | +$237,783 | | Common shares outstanding | 85,351 | 86,124 | -773 | - During the six months ended June 30, 2025, the Company repurchased **1.1 million shares** at an average cost of **$54.58 per share**[116](index=116&type=chunk) | Accumulated Other Comprehensive Income (Loss) (in thousands) | December 31, 2024 | June 30, 2025 | Change | | :----------------------------------------------------------- | :---------------- | :------------ | :----- | | Balance | $(606,092) | $(469,827) | +$136,265 | [9. Other Noninterest Income](index=38&type=section&id=9.%20Other%20Noninterest%20Income) This note provides a breakdown of various other noninterest income components for the three and six months ended June 30, 2025 and 2024 | Other Noninterest Income (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Income from bank-owned life insurance | $5,313 | $3,760 | $10,186 | $7,989 | | Credit related fees | $2,713 | $3,130 | $5,553 | $6,261 | | Gain (loss) from customer and other derivatives | $1,969 | $(1,060) | $1,698 | $(3,862) | | Net gains on sales of premises, equipment and other assets | $1,036 | $1,043 | $2,893 | $3,822 | | Other miscellaneous | $3,730 | $6,391 | $11,484 | $12,232 | | **Total other noninterest income** | **$14,761** | **$13,264** | **$31,814** | **$26,442** | [10. Other Noninterest Expense](index=38&type=section&id=10.%20Other%20Noninterest%20Expense) This note details various other noninterest expense components for the three and six months ended June 30, 2025 and 2024 | Other Noninterest Expense (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Corporate value and franchise taxes and other non-income taxes | $4,733 | $5,086 | $9,036 | $10,157 | | Entertainment and contributions | $3,347 | $2,685 | $6,734 | $5,863 | | Tax credit investment amortization | $1,068 | $1,555 | $2,136 | $3,109 | | Net other retirement expense | $(3,907) | $(4,507) | $(7,791) | $(9,331) | | Other miscellaneous | $8,796 | $8,646 | $16,969 | $16,270 | | **Total other noninterest expense** | **$22,755** | **$21,693** | **$43,392** | **$41,601** | [11. Earnings Per Common Share](index=38&type=section&id=11.%20Earnings%20Per%20Common%20Share) This note presents basic and diluted earnings per common share and explains the exclusion of anti-dilutive shares | EPS Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $1.32 | $1.31 | $2.70 | $2.56 | | Diluted EPS | $1.32 | $1.31 | $2.69 | $2.55 | - Weighted average potentially dilutive common shares totaling **142,030** (three months) and **3,008** (six months) were excluded from diluted EPS as anti-dilutive[128](index=128&type=chunk) [12. Segment Reporting](index=39&type=section&id=12.%20Segment%20Reporting) This note identifies the Capital Committee as the chief operating decision maker and banking operations as the sole reportable segment - The Capital Committee serves as the chief operating decision maker, with overall banking operations identified as the **sole reportable segment**[129](index=129&type=chunk) [13. Retirement Plans](index=39&type=section&id=13.%20Retirement%20Plans) This note describes the Company's closed defined benefit pension and nonqualified plans, and net periodic benefit costs - The Company's qualified and nonqualified defined benefit pension plans are **closed to new entrants**[131](index=131&type=chunk) - **No contributions** were made to the pension plan during the three and six months ended June 30, 2025 and 2024, with none anticipated for 2025[131](index=131&type=chunk) | Net Periodic Benefit Cost (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Pension Benefits | $(4,577) | $(5,363) | | Other Post-Retirement Benefits | $(44) | $(44) | [14. Share-Based Payment Arrangements](index=40&type=section&id=14.%20Share-Based%20Payment%20Arrangements) This note details nonvested share awards, unrecognized compensation expense, and restricted stock units granted during the period | Nonvested Share Awards | Number of Shares | Weighted Average Grant Date Fair Value | | :--------------------- | :--------------- | :----------------------------------- | | Nonvested at January 1, 2025 | 1,391,236 | $46.14 | | Granted | 552,317 | $56.08 | | Vested | (371,826) | $49.14 | | Forfeited | (26,799) | $47.36 | | Nonvested at June 30, 2025 | 1,544,928 | $48.96 | - Total unrecognized compensation expense for nonvested share awards was **$61.5 million**, to be recognized over a **3.2-year** weighted average period[138](index=138&type=chunk) - The Company granted **437,066 restricted stock units and performance share awards** to employees and executive management during the six months ended June 30, 2025[139](index=139&type=chunk)[140](index=140&type=chunk) [15. Commitments and Contingencies](index=40&type=section&id=15.%20Commitments%20and%20Contingencies) This note covers off-balance sheet commitments, lending reserves, legal proceedings, and the FDIC special assessment | Off-Balance Sheet Instruments (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------- | :------------ | :---------------- | | Commitments to extend credit | $9,280,007 | $9,249,468 | | Letters of credit | $417,869 | $420,614 | - The Company had a reserve for credit losses on unfunded lending commitments totaling **$27.1 million** at June 30, 2025[146](index=146&type=chunk) - Management does not believe loss contingencies from legal and regulatory matters will have a **material adverse effect** on financial position or liquidity[148](index=148&type=chunk) - The Company expensed **$29.4 million** for the FDIC special assessment as of June 30, 2025, with exact exposure still unknown[149](index=149&type=chunk)[150](index=150&type=chunk) [16. Fair Value Measurements](index=42&type=section&id=16.%20Fair%20Value%20Measurements) This note details recurring and nonrecurring fair value measurements, including classifications and valuation methodologies | Recurring Fair Value Measurements (in thousands) | June 30, 2025 Total Fair Value | December 31, 2024 Total Fair Value | | :----------------------------------------------- | :----------------------------- | :----------------------------- | | Total available for sale securities | $5,636,676 | $5,161,491 | | Mortgage loans held for sale | $29,960 | $18,929 | | Derivative assets | $71,083 | $73,840 | | Derivative liabilities | $118,517 | $160,623 | - The majority of recurring fair value measurements are classified as **Level 2**, relying on observable market data[153](index=153&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - The Company's **Level 3 liability** is a Visa Class B derivative, valued using discounted cash flow with unobservable inputs[158](index=158&type=chunk)[162](index=162&type=chunk) | Nonrecurring Fair Value Measurements (in thousands) | June 30, 2025 Total | December 31, 2024 Total | | :-------------------------------------------------- | :------------------ | :---------------------- | | Collateral-dependent loans individually evaluated for credit loss | $31,909 | $28,301 | | Other real estate owned and foreclosed assets, net | $26,847 | $27,797 | [17. Recent Accounting Pronouncements](index=49&type=section&id=17.%20Recent%20Accounting%20Pronouncements) This note discusses recently issued accounting standards and their expected impact on the Company's financial statements - **No new accounting standards** were adopted during the six months ended June 30, 2025[178](index=178&type=chunk) - FASB issued ASU 2023-09 and ASU 2024-03, **disclosure-only amendments** not expected to impact financial condition or results of operations[179](index=179&type=chunk)[180](index=180&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of financial condition and results, covering economic overview, net interest income, credit losses, noninterest income/expense, taxes, liquidity, capital, and balance sheet components [FORWARD-LOOKING STATEMENTS](index=50&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section highlights that forward-looking statements are subject to significant risks and uncertainties and are not obligations to update - Forward-looking statements are subject to **significant risks and uncertainties**, including economic conditions, geopolitical events, and regulatory changes[182](index=182&type=chunk)[185](index=185&type=chunk)[187](index=187&type=chunk) - The Company assumes **no obligation to update or revise** forward-looking statements[184](index=184&type=chunk)[186](index=186&type=chunk) [OVERVIEW](index=54&type=section&id=OVERVIEW) This overview discusses economic volatility, the Sabal Trust acquisition, and key financial highlights for Q2 2025 - Q2 2025 saw economic volatility and changing tariffs, yet real GDP grew **3.0% on an annualized basis**[195](index=195&type=chunk) - The Sabal Trust Company acquisition on May 2, 2025, added approximately **$3 billion in assets** under management and administration[193](index=193&type=chunk) - Management uses Moody's economic forecasts, weighting baseline and downside S-2 scenarios at **50% each** for credit loss allowance, reflecting continued uncertainty[198](index=198&type=chunk)[201](index=201&type=chunk) | Financial Highlight (Q2 2025 vs Q1 2025) | Q2 2025 | Q1 2025 | Change | | :--------------------------------------- | :------ | :------ | :----- | | Net Income (in millions) | $113.5 | $119.5 | -$6.0 | | Diluted EPS | $1.32 | $1.38 | -$0.06 | | Adjusted pre-provision net revenue (in millions) | $167.9 | $162.4 | +$5.5 | | Period-end loans (in billions) | $23.5 | $23.1 | +$0.4 | | Period-end deposits (in billions) | $29.0 | $29.2 | -$0.2 | | Net interest margin | 3.49% | 3.43% | +6 bps | | Efficiency ratio | 54.91% | 55.22% | -31 bps | [Net Interest Income](index=60&type=section&id=Net%20Interest%20Income) This section analyzes net interest income and net interest margin trends, including drivers and full-year 2025 expectations | Metric | Q2 2025 (in millions) | Q1 2025 (in millions) | Change (QoQ) | 6 Months 2025 (in millions) | 6 Months 2024 (in millions) | Change (YoY) | | :--------------------- | :-------------------- | :-------------------- | :----------- | :-------------------------- | :-------------------------- | :----------- | | Net interest income (te) | $279.5 | $272.7 | +$6.8 | $552.2 | $542.3 | +$9.9 | | Net interest margin (te) | 3.49% | 3.43% | +6 bps | 3.46% | 3.34% | +12 bps | - Net interest income (te) increased due to an additional accrual day, favorable earning asset mix, and higher loan/securities yields, partially offset by increased short-term borrowings[213](index=213&type=chunk) - Full year 2025 net interest income (te) is expected to be up **3% to 4%**, with modest net interest margin expansion in H2 2025, assuming **25 bp rate cuts** in September and December[217](index=217&type=chunk) [Provision for Credit Losses](index=63&type=section&id=Provision%20for%20Credit%20Losses) This section examines the provision for credit losses, net charge-offs, and their impact on asset quality | Metric | Q2 2025 (in millions) | Q1 2025 (in millions) | Change (QoQ) | 6 Months 2025 (in millions) | 6 Months 2024 (in millions) | Change (YoY) | | :-------------------------------- | :-------------------- | :-------------------- | :----------- | :-------------------------- | :-------------------------- | :----------- | | Provision for credit losses | $14.9 | $10.5 | +$4.4 | $25.4 | $21.7 | +$3.7 | | Net charge-offs | $17.8 | $10.3 | +$7.5 | $28.0 | $16.3 | +$11.7 | | Annualized net charge-offs to average loans | 0.31% | 0.18% | +0.13% | 0.24% | 0.14% | +0.10% | - The Q2 2025 provision increase was largely due to a **$14.6 million commercial charge-off** from a single borrower[224](index=224&type=chunk) - Net charge-offs as a percentage of average loans are expected to range from **0.15% to 0.25%** for 2025[228](index=228&type=chunk) [Noninterest Income](index=65&type=section&id=Noninterest%20Income) This section analyzes noninterest income components, including trust fees and secondary mortgage market operations, and full-year expectations | Noninterest Income (in thousands) | Q2 2025 | Q1 2025 | Change (QoQ) | 6 Months 2025 | 6 Months 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | :------------ | :------------ | :----------- | | Total Noninterest Income | $98,524 | $94,791 | +$3,733 | $193,315 | $177,025 | +$16,290 | | Trust fees | $22,753 | $18,022 | +$4,731 | $40,775 | $35,550 | +$5,225 | | Bank card and ATM fees | $22,004 | $20,714 | +$1,290 | $42,718 | $42,449 | +$269 | | Secondary mortgage market operations | $4,147 | $3,468 | +$679 | $7,615 | $6,437 | +$1,178 | - Trust fees increased significantly due to the Sabal acquisition, contributing **$3.6 million in Q2 2025**[232](index=232&type=chunk) - Full year 2025 noninterest income is expected to be up **9% to 10%** from 2024, including the Sabal acquisition impact[243](index=243&type=chunk) [Noninterest Expense](index=69&type=section&id=Noninterest%20Expense) This section details noninterest expense components, including acquisition expenses, professional services, and personnel costs, with full-year expectations | Noninterest Expense (in thousands) | Q2 2025 | Q1 2025 | Change (QoQ) | 6 Months 2025 | 6 Months 2024 | Change (YoY) | | :--------------------------------- | :------ | :------ | :----------- | :------------ | :------------ | :----------- | | Total Noninterest Expense | $215,979 | $205,059 | +$10,920 | $421,038 | $413,738 | +$7,300 | | Sabal Trust Company acquisition expense | $5,911 | $0 | +$5,911 | $5,911 | $0 | +$5,911 | | Professional services expense | $16,371 | $12,235 | +$4,136 | $28,606 | $18,494 | +$10,112 | | Personnel expense | $116,512 | $114,347 | +$2,165 | $230,859 | $239,883 | -$9,024 | | Deposit insurance and regulatory fees | $4,822 | $5,026 | -$204 | $9,848 | $14,939 | -$5,091 | - Excluding supplemental items, Q2 2025 noninterest expense was up **2% QoQ** and **1% YoY** for the six months ended June 30, 2025[244](index=244&type=chunk) - Adjusted noninterest expense is expected to be up **4% to 5%** for full year 2025, including the Sabal acquisition impact[259](index=259&type=chunk) [Income Taxes](index=74&type=section&id=Income%20Taxes) This section analyzes the effective income tax rate and discusses the expected impact of recent tax law changes | Income Tax Metric | Q2 2025 | Q1 2025 | Change (QoQ) | 6 Months 2025 | 6 Months 2024 | Change (YoY) | | :---------------- | :------ | :------ | :----------- | :------------ | :------------ | :----------- | | Effective income tax rate | 21.5% | 19.9% | +1.6% | 20.7% | 19.8% | +0.9% | - Management expects the effective income tax rate for 2025 to be in the **20% to 21% range**[261](index=261&type=chunk) - The "One Big Beautiful Bill Act" (OBBBA) is **not anticipated to have a material impact** on financial position or results of operations[265](index=265&type=chunk)[266](index=266&type=chunk) [Liquidity](index=76&type=section&id=Liquidity) This section details the Company's liquidity position, including available funding sources, uninsured deposits, and key liquidity ratios | Liquidity Metric (in thousands) | June 30, 2025 | | :------------------------------ | :------------ | | Total Available Sources of Funding | $19,881,908 | | Net Availability | $18,238,394 | | Cash and other interest-bearing bank deposits | $1,117,111 | | **Total Liquidity** | **$19,355,505** | - Available liquidity of **$19.4 billion** at June 30, 2025, exceeds estimated uninsured, noncollateralized deposits of **$11.2 billion**[268](index=268&type=chunk)[311](index=311&type=chunk) | Liquidity Ratio | June 30, 2025 | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :------------- | :---------------- | | Free securities / total securities | 59.44% | 58.64% | 48.65% | | Core deposits / total deposits | 94.68% | 94.34% | 94.12% | | Liquid assets / total liabilities | 17.67% | 18.08% | 15.26% | | Quarter-to-date average loans / quarter-to-date average deposits | 81.15% | 80.23% | 79.87% | - The Parent targets cash and liquid assets to fund approximately **six quarters** of cash needs, exceeding its internal target with **$256.2 million** at June 30, 2025[276](index=276&type=chunk) [Capital Resources](index=78&type=section&id=Capital%20Resources) This section reviews the Company's capital ratios, regulatory status, and recent capital actions, including dividends and share repurchases | Capital Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Stockholders' equity (in billions) | $4.4 | $4.1 | +$0.3 | | Tangible common equity (TCE) ratio | 9.84% | 9.47% | +37 bps | | Common equity tier 1 (CET1) ratio | 13.97% | 14.14% | -17 bps | | Total risk-based capital ratio | 15.82% | 15.93% | -11 bps | - The Company and Bank are **"well-capitalized,"** exceeding minimum regulatory capital ratios by at least **$1.2 billion**[279](index=279&type=chunk) - The Board declared a **$0.45 per share** common stock cash dividend and authorized a repurchase program for up to **4.3 million shares** through December 31, 2026[282](index=282&type=chunk)[283](index=283&type=chunk) [Short-Term Investments](index=80&type=section&id=Short-Term%20Investments) This section provides an overview of the Company's short-term investment balances at June 30, 2025, and December 31, 2024 | Short-Term Investments (in millions) | June 30, 2025 | December 31, 2024 | Change | | :----------------------------------- | :------------ | :---------------- | :----- | | Short-term investments | $604.6 | $939.7 | -$335.1 | [Securities](index=80&type=section&id=Securities) This section details the Company's securities portfolio, including available-for-sale and held-to-maturity categories, composition, and hedging strategies | Securities (in billions) | June 30, 2025 | December 31, 2024 | Change | | :----------------------- | :------------ | :---------------- | :----- | | Total Investment in Securities | $7.9 | $7.6 | +$0.3 | | Securities available for sale | $5.7 | $5.2 | +$0.5 | | Securities held to maturity | $2.2 | $2.4 | -$0.2 | - The securities portfolio primarily consists of **U.S. government agency-backed residential and commercial mortgage-backed securities** and CMOs[288](index=288&type=chunk) - At June 30, 2025, the portfolio had an average expected maturity of **5.35 years**, effective duration of **3.94 years**, and a weighted-average yield of **2.77%**[288](index=288&type=chunk) - Approximately **$514.0 million** of available-for-sale securities are hedged with **$477.5 million** in fair value hedges to reduce duration and provide flexibility[288](index=288&type=chunk) [Loans](index=82&type=section&id=Loans) This section provides a breakdown of loan categories, commercial and industrial loan growth, shared national credits, and full-year growth expectations | Loan Category (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Commercial non-real estate | $9,760,733 | $9,876,592 | -$115,859 | | Commercial real estate - owner occupied | $3,136,182 | $3,011,955 | +$124,227 | | Commercial real estate - income producing | $3,940,309 | $3,798,612 | +$141,697 | | Construction and land development | $1,219,514 | $1,281,115 | -$61,601 | | Residential mortgages | $4,057,307 | $3,961,328 | +$95,979 | | Consumer | $1,347,705 | $1,369,845 | -$22,140 | | **Total Loans** | **$23,461,750** | **$23,299,447** | **+$162,303** | - Commercial and industrial (C&I) loans totaled **$12.9 billion** at June 30, 2025, up **2%** QoQ, reflecting increased demand[292](index=292&type=chunk) - Shared national credits outstanding were approximately **$2.2 billion**, representing **9.5% of total loans** at June 30, 2025[291](index=291&type=chunk) - Management expects **low single-digit loan growth** for full year 2025 compared to December 31, 2024[297](index=297&type=chunk) [Allowance for Credit Losses and Asset Quality](index=85&type=section&id=Allowance%20for%20Credit%20Losses%20and%20Asset%20Quality) This section analyzes the allowance for credit losses, asset quality metrics, criticized loans, and net charge-off expectations | Credit Metric (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :------------- | :---------------- | | Total Allowance for Credit Losses | $340,289 | $343,150 | $342,227 | | Allowance for credit losses to period-end loans | 1.45% | 1.49% | 1.47% | | Criticized commercial loans | $569,300 | $594,100 | $623,000 | | Nonaccrual loans | $94,922 | $104,214 | $97,335 | | Loans 90 days past due still accruing | $58,702 | $15,593 | $21,852 | - The decrease in allowance for credit losses was due to net charge-offs partially offset by provision, maintaining a **stable credit loss outlook**[298](index=298&type=chunk) - Loans **90 days past due still accruing** at June 30, 2025, include **$36.7 million** from a single relationship with recently extended matured loans[306](index=306&type=chunk) - Net charge-offs as a percentage of average loans are expected to range from **0.15% to 0.25%** for 2025[307](index=307&type=chunk) [Deposits](index=87&type=section&id=Deposits) This section details deposit categories, noninterest-bearing demand deposits, interest rates, uninsured deposits, and full-year growth expectations | Deposit Category (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Noninterest-bearing deposits | $10,638,785 | $10,597,461 | +$41,324 | | Interest-bearing retail transaction and savings deposits | $11,498,300 | $11,327,725 | +$170,575 | | Interest-bearing public fund deposits | $2,985,985 | $3,212,499 | -$226,514 | | Retail time deposits | $3,923,542 | $4,348,265 | -$424,723 | | Brokered time deposits | $0 | $6,901 | -$6,901 | | **Total Deposits** | **$29,046,612** | **$29,492,851** | **-$446,239** | - Noninterest-bearing demand deposits comprised **37% of total deposits** at June 30, 2025[313](index=313&type=chunk) - The rate paid on interest-bearing deposits for Q2 2025 was **2.58%**, down **5 bps** from Q1 2025[315](index=315&type=chunk) - Estimated uninsured deposits were approximately **$14.4 billion** at June 30, 2025, with **$11.2 billion noncollateralized**, covered by **$19.4 billion** total liquidity[311](index=311&type=chunk) - Management expects **low single-digit period-end deposit growth** for full year 2025 compared to December 31, 2024[317](index=317&type=chunk) [Short-Term Borrowings](index=89&type=section&id=Short-Term%20Borrowings) This section provides an overview of the Company's short-term borrowings, including FHLB advances, at June 30, 2025, and December 31, 2024 | Short-Term Borrowings (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :----------------------------------- | :------------ | :---------------- | :----- | | Short-term borrowings | $1,044,927 | $639,015 | +$405,912 | | FHLB borrowings outstanding | $400,000 | $0 | +$400,000 | [Long-Term Debt](index=89&type=section&id=Long-Term%20Debt) This section details the Company's long-term debt, including subordinated notes payable that qualify as Tier 2 capital | Long-Term Debt (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :---------------------------- | :------------ | :---------------- | :----- | | Long-term debt | $210,620 | $210,544 | +$76 | - Long-term debt includes **$172.5 million** in **6.25% subordinated notes** maturing June 15, 2060, qualifying as Tier 2 capital[321](index=321&type=chunk) [OFF-BALANCE SHEET ARRANGEMENTS](index=91&type=section&id=OFF-BALANCE%20SHEET%20ARRANGEMENTS) This section outlines the Company's off-balance sheet arrangements, including commitments to extend credit and letters of credit | Off-Balance Sheet Instruments (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------- | :------------ | :---------------- | | Commitments to extend credit | $9,280,007 | $9,249,468 | | Letters of credit | $417,869 | $420,614 | - The Company had a reserve for credit losses on unfunded lending commitments totaling **$27.1 million** at June 30, 2025[326](index=326&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=91&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) This section confirms no material changes to critical accounting policies and estimates, which rely on management's judgment - **No material changes** occurred in critical accounting policies and estimates during the reporting period[329](index=329&type=chunk) - Financial statements conform to GAAP, requiring management estimates and assumptions about future events[330](index=330&type=chunk) [NEW ACCOUNTING PRONOUNCEMENTS](index=91&type=section&id=NEW%20ACCOUNTING%20PRONOUNCEMENTS) This section refers to Note 17 for details on recent accounting pronouncements and their potential impact - Refer to **Note 17** for details on recent accounting pronouncements[331](index=331&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures about Market Risk](index=91&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the Company's market risk exposure, primarily interest rate risk, and management strategies, including NII at risk and EVE analyses under various rate scenarios [Net Interest Income at Risk](index=91&type=section&id=Net%20Interest%20Income%20at%20Risk) This section analyzes the Company's net interest income sensitivity to various hypothetical interest rate changes over one and two years - The Company's primary market risk is **interest rate risk**, managed by measuring NII sensitivity under various rate scenarios[332](index=332&type=chunk) | Change in Interest Rates (basis points) | Estimated Increase (Decrease) in NII (Year 1) | Estimated Increase (Decrease) in NII (Year 2) | | :-------------------------------------- | :-------------------------------------------- | :-------------------------------------------- | | -300 | -6.19% | -14.87% | | -200 | -4.04% | -9.98% | | -100 | -1.85% | -4.66% | | +100 | 1.58% | 4.00% | | +200 | 2.98% | 7.64% | | +300 | 4.37% | 11.26% | - Results indicate general **asset sensitivity**, with interest rate risk driven by mid to long-term yield curve changes due to funding mix shifts[335](index=335&type=chunk) [Economic Value of Equity (EVE)](index=93&type=section&id=Economic%20Value%20of%20Equity%20(EVE)) This section presents the Economic Value of Equity (EVE) analysis, calculating the present value of future cash flows under various interest rate scenarios - EVE analysis calculates the **present value of future cash flows** from assets minus liabilities, including off-balance sheet items[337](index=337&type=chunk) | Change in Interest Rates (basis points) | Estimated Change in EVE at June 30, 2025 | | :-------------------------------------- | :--------------------------------------- | | -300 | 2.51% | | -200 | 2.48% | | -100 | 1.75% | | +100 | -2.43% | | +200 | -5.20% | | +300 | -8.05% | - The net changes in EVE are **within the parameters approved by the Board of Directors**[339](index=339&type=chunk) [ITEM 4. Controls and Procedures](index=95&type=section&id=ITEM%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and the absence of material changes in internal control over financial reporting as of June 30, 2025 - The Company's disclosure controls and procedures were **effective** as of June 30, 2025[340](index=340&type=chunk) - **No material changes** in internal control over financial reporting occurred during the three months ended June 30, 2025[341](index=341&type=chunk) Part II. Other Information [ITEM 1. Legal Proceedings](index=96&type=section&id=ITEM%201.%20Legal%20Proceedings) This section confirms the Company's involvement in ordinary course legal proceedings, with no anticipated material adverse effect on financial position or liquidity - The Company is party to various legal proceedings, but does not believe they will have a **material adverse effect** on financial position or liquidity[344](index=344&type=chunk) [ITEM 1A. Risk Factors](index=96&type=section&id=ITEM%201A.%20Risk%20Factors) This section refers investors to the 2024 Form 10-K for risk factors, confirming no material changes during the current reporting period - Investors should consider risk factors from the **2024 Form 10-K**; **no material changes** occurred during the current reporting period[345](index=345&type=chunk)[346](index=346&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=96&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the Board-approved stock buyback program, authorizing repurchase of up to 4.3 million shares, and reports Q2 2025 repurchase activity - The Company has a Board-approved stock buyback program to repurchase up to **4.3 million shares** through December 31, 2026[347](index=347&type=chunk) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----------------------------- | :----------------------------- | :--------------------------- | | April 1, 2025 - April 30, 2025 | 400,429 | $50.71 | | May 1, 2025 - May 31, 2025 | 328,179 | $54.27 | | June 1, 2025 - June 30, 2025 | 25,000 | $54.39 | | **Total (3 months ended June 30, 2025)** | **753,608** | **$52.38** | [ITEM 5. Other Information](index=96&type=section&id=ITEM%205.%20Other%20Information) This section confirms no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, terminated, or modified by directors or executive officers during Q2 2025 - **No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements** were adopted, terminated, or modified by directors or executive officers during Q2 2025[351](index=351&type=chunk) [ITEM 6. Exhibits](index=97&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL taxonomy documents - The report includes **certifications (31.1, 31.2, 32.1, 32.2)** and various **Inline XBRL documents**[352](index=352&type=chunk) [SIGNATURES](index=98&type=section&id=SIGNATURES) This section contains the official signatures of Hancock Whitney Corporation's President & CEO and SVP & CFO, certifying the report filing on August 7, 2025 - The report was signed by **John M. Hairston (President & CEO)** and **Michael M. Achary (SVP & CFO)** on August 7, 2025[354](index=354&type=chunk)

Core Viewpoint - Hancock Whitney Corp. (HWC) reported second-quarter 2025 adjusted earnings per share of $1.37, surpassing the Zacks Consensus Estimate of $1.34, and reflecting a 4.6% increase from the prior year quarter [1][10]. Financial Performance - The company's total revenues reached $375.5 million, marking a 4.4% year-over-year increase and exceeding the Zacks Consensus Estimate of $371.3 million [4]. - Net interest income (NII) rose 2.3% year over year to $279.5 million, with a net interest margin (NIM) of 3.49%, which expanded by 12 basis points [4]. - Non-interest income totaled $98.5 million, up 10.5%, driven by increases across almost all components [5]. - Total non-interest expenses increased by 4.8% to $216 million, while adjusted expenses rose by 2% [5]. Loan and Deposit Trends - As of June 30, 2025, total loans were $23.5 billion, up 1.6% from the prior quarter, while total deposits slightly declined to $29 billion [6]. Credit Quality - The provision for credit losses was $14.9 million, a significant increase of 71.1% from the prior-year quarter [7]. - Net charge-offs (annualized) were 0.31% of average total loans, up 19 basis points from the prior-year quarter [7]. Capital and Profitability Ratios - The Tier 1 leverage ratio improved to 11.39% from 10.71% year over year, and the common equity Tier 1 ratio increased to 14.03% from 13.25% [8]. - The return on average assets remained stable at 1.32%, while the return on average common equity decreased to 10.63% from 12.04% [8]. Share Repurchase Activity - In the reported quarter, HWC repurchased 0.75 million shares at an average price of $52.36 per share [11]. Strategic Outlook - The company's strategic expansion initiatives, including the acquisition of Sabal Trust Company, are expected to support top-line growth, while bond restructuring efforts and higher rates may aid NII and NIM expansion [12].

Group 1 - Hancock Whitney's shares have performed well over the past year, gaining approximately 14% and reaching a 52-week high [1] - The company reported generally in-line results, indicating that its growth initiatives have been slow to accelerate [1]

Core Insights - Hancock Whitney (HWC) reported revenue of $375.48 million for Q2 2025, a year-over-year increase of 4.4% and an EPS of $1.37, up from $1.31 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance Metrics - Net interest margin (TE) stood at 3.5%, matching the average estimate from four analysts [4] - Efficiency Ratio was reported at 54.9%, better than the four-analyst average estimate of 55.9% [4] - Total net charge-offs as a percentage of average loans were 0.3%, slightly above the 0.2% average estimate from three analysts [4] - Average balance of total interest-earning assets was $32.08 billion, slightly above the three-analyst average estimate of $32.05 billion [4] - Total nonperforming loans amounted to $94.92 million, below the two-analyst average estimate of $106.46 million [4] - Total nonperforming assets were reported at $121.77 million, lower than the $138.95 million estimated by two analysts [4] - Total noninterest income reached $98.52 million, exceeding the four-analyst average estimate of $96.84 million [4] - Net interest income (TE) was $279.46 million, slightly above the $278.55 million average estimate from four analysts [4] - Net interest income was reported at $276.96 million, compared to the $275.4 million estimated by three analysts [4] - Secondary mortgage market operations generated $4.15 million, below the $4.24 million average estimate from two analysts [4] - Bank card and ATM fees totaled $22 million, exceeding the two-analyst average estimate of $21.14 million [4] - Investment and annuity fees and insurance commissions were reported at $10.6 million, slightly above the $10.47 million average estimate from two analysts [4] Stock Performance - Shares of Hancock Whitney have returned +11.7% over the past month, outperforming the Zacks S&P 500 composite's +5% change, with a Zacks Rank 2 (Buy) indicating potential for further outperformance [3]

Group 1 - Hancock Whitney (HWC) reported quarterly earnings of $1.37 per share, exceeding the Zacks Consensus Estimate of $1.34 per share, and up from $1.31 per share a year ago, representing an earnings surprise of +2.24% [1] - The company posted revenues of $375.48 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.14%, and an increase from year-ago revenues of $359.6 million [2] - Hancock Whitney shares have increased approximately 10.1% since the beginning of the year, outperforming the S&P 500's gain of 6.6% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $1.36 on revenues of $384.34 million, and for the current fiscal year, it is $5.53 on revenues of $1.51 billion [7] - The Zacks Industry Rank for Banks - Southeast is currently in the top 24% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - FVCBankcorp, another company in the same industry, is expected to report quarterly earnings of $0.28 per share, reflecting a year-over-year change of +21.7% [9]

Financial Data and Key Metrics Changes - The company reported an adjusted net income of $118 million or $1.37 per share for the second quarter, compared to $120 million or $1.38 per share in the first quarter [12] - The net interest margin (NIM) expanded by six basis points, reaching 1.37% after adjusting for transaction-related expenses [5][12] - Total loans increased by $364 million or 6% annualized, driven by stronger demand and increased line utilization [5][12] - Total deposits decreased by $148 million, primarily due to a reduction in certificates of deposit (CDs) [6][12] Business Line Data and Key Metrics Changes - Fee income grew by $4 million or 4%, with trust fees being the primary driver of this growth [12][13] - The efficiency ratio improved to 54.91% from 55.22% in the previous quarter, indicating better cost management [13] - The company added 10 net new bankers during the quarter, contributing to its organic growth strategy [8] Market Data and Key Metrics Changes - The company reported a solid allowance for credit losses at 1.45%, indicating a strong position to navigate economic challenges [10] - Criticized commercial loans decreased by 4% to $594 million, while nonaccrual loans decreased by 9% to $95 million [18] Company Strategy and Development Direction - The company remains focused on organic growth, with a guidance of low single-digit loan growth for 2025, inferring mid single-digit growth for the second half of the year [6][12] - The company is optimistic about its growth prospects, particularly in the Dallas market, with plans to open five new financial centers [9] - The acquisition of Sable Trust Company is expected to enhance the company's capabilities and client base [7][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic macroeconomic environment but expressed confidence in the company's ample liquidity and strong capital ratios [10] - The management noted that clients have become less sensitive to economic headlines and are returning to making business decisions based on facts [30] - The company expects modest NIM expansion and net interest income (NII) growth of 3-4% for the year [17] Other Important Information - The company repurchased 750,000 shares of common stock during the quarter, reflecting its commitment to returning capital to shareholders [7][19] - The company anticipates two rate cuts of 25 basis points in September and December, which may impact deposit costs and NIM [17][44] Q&A Session Summary Question: What is the target CET1 ratio for buybacks? - Management indicated a comfortable operating range for Tier 1 common capital between 11% and 11.5% and around 8% for TCE [23][24] Question: What is the outlook for loan growth and borrower health? - Management noted that net new loans to new clients are the primary driver for growth, with a positive outlook barring macroeconomic changes [29][30] Question: Can you provide more insight into NIM outlook? - Management expects NIM to continue expanding in the second half of the year, driven by loan growth and reduced deposit costs [41][44] Question: How much of the expense base came from the Sable acquisition? - The increase in expenses related to Sable was approximately $2.5 million for the quarter [50] Question: What is the outlook for criticized loans? - Management reported a decrease in criticized loans and expressed confidence in the portfolio's health moving forward [105][106] Question: What is the company's stance on M&A? - Management reiterated that M&A is not a current focus but remains opportunistic for the future [58][112]

Core Insights - The company reported an expansion in Net Interest Margin (NIM) by six basis points in Q2 2025, indicating improved profitability [2][15] - Adjusted Return on Assets (ROA) was 1.37% for Q2 2025, reflecting transaction expenses related to the Sable Trust acquisition [3][20] - Adjusted net income decreased slightly to $118 million, or $1.37 per share, compared to $120 million, or $1.38 per share, in the previous quarter [3][20] - Pre-Provision Net Revenue (PPNR) increased by $5 million, or 3%, reaching 1.95% of assets [3][20] - Fee income rose by $4 million, or 4%, primarily driven by trust fees from the Sable Trust acquisition [4][20] Financial Performance - Net Interest Income (NII) increased by $7 million, or 2%, quarter-over-quarter [3][20] - Expenses rose by $5 million, or 2%, after adjusting for one-time items, with $2.5 million attributed to the Sable Trust acquisition [4][20] - Efficiency Ratio improved to 54.91% from 55.22% in the previous quarter, indicating better cost management [5][21] - Loans grew by $364 million, representing 6% annualized linked-quarter growth, with guidance for low single-digit annual growth remaining unchanged [5][15] Deposits and Funding - Deposit balances decreased by $148 million, primarily due to certificate of deposit (CD) run-off and reduced public funds [5][16] - Demand Deposit Account (DDA) mix increased to 37%, with management guiding for 37%-38% by year-end 2025 [5][24] - CD maturities repriced from 3.85% to 3.59%, with an 86% renewal rate; an additional $3.6 billion is expected to mature in the second half of 2025 [6][23] Capital and Shareholder Returns - Tangible common equity (TCE) stood at 9.84% and common equity Tier 1 at 14.03% post-acquisition [7][25] - The company repurchased 750,000 shares, spending approximately $40 million, with plans to maintain this capital return pace [8][26] - Management expects a common equity Tier 1 operating level of 11%-11.5% and a TCE comfort zone near 8% [9][29] Credit Quality - Allowance for Credit Losses (ACL) was maintained at 1.45% of loans, down four basis points from the last quarter [7][25] - Net charge-offs increased to 31 basis points, with full-year 2025 guidance unchanged at 15-25 basis points [7][25] - Criticized commercial loans declined by 4% to $594 million, and nonaccrual loans fell by 9% to $95 million, indicating stable credit quality [7][25] Growth Initiatives - The company added ten new bankers and finalized five new financial center locations in the Dallas area, with three openings slated for late 2025 and the remainder in early 2026 [8][17] - Management expects continued CD repricing at lower rates, forecasting at least an 81% renewal rate in the second half of 2025 [12][24] - The organic hiring plan targets a compounded 10% increase in bankers annually, with flexibility to exceed this if high-quality talent becomes available [12][76]

Financial Performance - Net income was $113.5 million, or $1.32 per diluted share, compared to $119.5 million, or $1.38 per diluted share in 1Q25[24, 25] - Adjusted Pre-Provision Net Revenue (PPNR) totaled $167.9 million, up $5.5 million compared to 1Q25[24, 25] - Net Interest Margin (NIM) was 3.49%, up 6 bps compared to 1Q25[24, 25] - Efficiency ratio was 54.91%, improved 31 bps compared to prior quarter[24, 25] Balance Sheet - Total assets reached $35.2 billion[10] - Loans totaled $23.5 billion, up $364 million, or 6% LQA[10, 25, 29] - Deposits totaled $29.0 billion, down $148 million, or 2% LQA[10, 25, 36] - CET1 ratio was estimated at 14.03%, down 45 bps linked-quarter; TCE ratio at 9.84%, down 17 bps linked-quarter[10, 24, 25] Asset Quality - Criticized commercial loans totaled $569 million, or 3.15% of total commercial loans, down $25 million from $594 million, or 3.35% of total commercial loans, in prior quarter[38, 39] - Nonaccrual loans totaled $95 million, or 0.40% of total loans, down $9 million from $104 million, or 0.45% of total loans, in prior quarter[38, 39] - ACL coverage solid at 1.45%, compared to 1.49% in prior quarter[25, 41] Forward Guidance - Expect EOP loans at 12/31/25 to be up low single digits from 12/31/24 levels[74] - Expect NII (te) to be up between 3%-4% from FY24; expect modest NIM expansion throughout 2H25[74] - Expect noninterest income to be up 9%-10% from FY24 noninterest income[74]

[Financial Highlights & Overview](index=1&type=section&id=Financial_Highlights_and_Overview) The company reported solid Q2 2025 results with strong profitability, NIM expansion, and active capital deployment, despite acquisition-related expenses [Second Quarter 2025 Highlights](index=1&type=section&id=Second_Quarter_2025_Highlights) Hancock Whitney reported a solid second quarter for 2025, with a net income of $113.5 million, or $1.32 per diluted share Q2 2025 Key Financial Results | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $113.5M | $119.5M | $114.6M | | Diluted EPS | $1.32 | $1.38 | $1.31 | | Diluted EPS (Adjusted) | $1.37 | $1.38 | $1.31 | - The acquisition of Sabal Trust Company on May 2, 2025, resulted in **$5.9 million** ($0.05 per share) of supplemental disclosure items, impacting reported earnings[1](index=1&type=chunk)[4](index=4&type=chunk) Q2 2025 Key Performance Indicators (vs. Q1 2025) | Indicator | Q2 2025 Value | Change vs. Q1 2025 | | :--- | :--- | :--- | | Adjusted PPNR | $167.9M | Up $5.5M | | Loans | $23.5B | Up 6% LQA | | Deposits | $29.0B | Down 2% LQA | | Net Interest Margin (NIM) | 3.49% | Up 6 bps | | Efficiency Ratio | 54.91% | Improved 31 bps | | CET1 Ratio (est.) | 14.03% | Down 45 bps | - CEO John M. Hairston highlighted the quarter's solid profitability, NIM expansion, improved efficiency, and proactive capital deployment for both organic growth and the repurchase of **750,000 shares**[4](index=4&type=chunk) [Financial Condition Analysis](index=2&type=section&id=Financial_Condition_Analysis) The company's financial condition shows growth in loans, a slight decrease in deposits, solid asset quality, and strong capital ratios [Loans](index=2&type=section&id=Loans) Total loans increased by $363.6 million to $23.5 billion in the second quarter, a 6% linked-quarter annualized growth rate Loan Portfolio Growth | Metric | June 30, 2025 (in billions) | Change from Mar 31, 2025 (in millions) | | :--- | :--- | :--- | | Total Loans | $23.5 billion | +$363.6 million (+2%) | | Average Loans | $23.2 billion | +$180.7 million (+1%) | - Management expects **low-single digit loan growth** in 2025 from December 31, 2024 levels[5](index=5&type=chunk) [Deposits](index=2&type=section&id=Deposits) Total deposits saw a slight linked-quarter decrease of $148.1 million, ending the quarter at $29.0 billion Deposit Balances | Metric | June 30, 2025 (in billions) | Change from Mar 31, 2025 (in millions) | | :--- | :--- | :--- | | Total Deposits | $29.0 billion | -$148.1 million (-1%) | | Average Deposits | $28.6 billion | -$102.5 million (< -1%) | - Noninterest-bearing deposits (DDAs) increased by $23.9 million and constituted **37%** of total deposits at quarter-end[7](index=7&type=chunk) - The decrease in deposits was primarily driven by a **$234.4 million (6%)** drop in retail time deposits and a decrease in interest-bearing public funds due to seasonal outflows[6](index=6&type=chunk)[7](index=7&type=chunk) [Asset Quality](index=2&type=section&id=Asset_Quality) Asset quality remained solid with improvements in key areas Credit Quality Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 (in millions) | Q1 2025 (in millions) | | :--- | :--- | :--- | | ACL to Period-End Loans | 1.45% | 1.49% | | Provision for Credit Losses | $14.9M | $10.5M | | Net Charge-Offs (Annualized) | 0.31% | 0.18% | | Criticized Commercial Loans | $569.3M | $594.1M | | Nonaccrual Loans | $94.9M | $104.2M | - Criticized commercial loans decreased to **3.15%** of total commercial loans from 3.35% in the prior quarter[10](index=10&type=chunk) - Nonaccrual loans as a percentage of total loans improved, decreasing to **0.40%** from **0.45%** linked-quarter[10](index=10&type=chunk) [Capital](index=4&type=section&id=Capital) Capital ratios remained strong despite a linked-quarter decrease due to deployment for growth and share buybacks Key Capital Ratios (June 30, 2025) | Ratio | Value (%) | Change vs. Mar 31, 2025 (%) | | :--- | :--- | :--- | | CET1 Ratio (est.) | 14.03% | -45 bps | | TCE Ratio | 9.84% | -17 bps | | Total Risk-Based Capital (est.) | 15.87% | -50 bps | - The company repurchased **750,000 shares** of its common stock during Q2 2025, bringing the total repurchased under the current program to **1,100,000 shares**[21](index=21&type=chunk) [Results of Operations Analysis](index=3&type=section&id=Results_of_Operations_Analysis) Operating results for Q2 2025 show increased net interest income and noninterest income, alongside higher expenses due to acquisition-related costs [Net Interest Income and Net Interest Margin (NIM)](index=3&type=section&id=Net_Interest_Income_and_Net_Interest_Margin_%28NIM%29) Net interest income (TE) increased by $6.7 million to $279.5 million, and the net interest margin (NIM) expanded by 6 basis points to 3.49% linked-quarter Net Interest Income & Margin (TE) | Metric | Q2 2025 (in millions) | Change from Q1 2025 (in millions) | | :--- | :--- | :--- | | Net Interest Income (TE) | $279.5M | +$6.7M (+2%) | | Net Interest Margin (TE) | 3.49% | +6 bps | - The **6 bps** NIM expansion was driven by: **+4 bps** from deposit rates, **+2 bps** from securities yields, and **+2 bps** from loan yields, partially offset by a **-2 bps** impact from unfavorable borrowing mix and rates[11](index=11&type=chunk) [Noninterest Income](index=3&type=section&id=Noninterest_Income) Noninterest income rose by $3.7 million (4%) to $98.5 million compared to the prior quarter Noninterest Income Breakdown (Q2 2025 vs Q1 2025) | Category | Q2 2025 Value (in millions) | Change vs. Q1 2025 (in millions) | | :--- | :--- | :--- | | **Total Noninterest Income** | **$98.5M** | **+$3.7M (+4%)** | | Trust Fees | $22.8M | +$4.7M (+26%) | | Bank Card & ATM Fees | $22.0M | +$1.3M (+6%) | | Secondary Mortgage Operations | $4.1M | +$0.7M (+20%) | | Investment & Annuity/Insurance | $10.6M | -$0.8M (-7%) | | Other Noninterest Income | $14.8M | -$2.3M (-13%) | - The acquisition of Sabal Trust Company on May 2, 2025, contributed **$3.6 million** to trust fees in the quarter[14](index=14&type=chunk) [Noninterest Expense & Taxes](index=3&type=section&id=Noninterest_Expense_and_Taxes) Noninterest expense increased by $10.9 million (5%) to $216.0 million, largely due to $5.9 million in one-time expenses related to the Sabal Trust Company acquisition - Total noninterest expense rose to **$216.0 million**, up **$10.9 million** from Q1 2025. This included **$5.9 million** in one-time acquisition expenses for Sabal Trust Company[16](index=16&type=chunk) - The acquisition-related expenses included **$1.4 million** in personnel costs and **$4.5 million** in other expenses, primarily professional services[17](index=17&type=chunk)[19](index=19&type=chunk) - The effective income tax rate for the second quarter of 2025 was **21.5%**[19](index=19&type=chunk) [Financial Statements](index=7&type=section&id=Financial_Statements) This section provides detailed financial statements, including income statement, balance sheet, average balance sheet, and asset quality information, for Q2 2025 and comparative periods [Financial Highlights](index=7&type=section&id=Financial_Highlights) This section provides a consolidated, high-level overview of the company's financial performance and condition Selected Financial Highlights | Metric (Q2 2025) | Value | | :--- | :--- | | Net Income | $113.5M | | Diluted EPS | $1.32 | | Total Assets (Period-End) | $35.2B | | Total Loans (Period-End) | $23.5B | | Total Deposits (Period-End) | $29.0B | | Return on Average Assets | 1.32% | | Net Interest Margin (TE) | 3.49% | | Efficiency Ratio | 54.91% | [Income Statement](index=9&type=section&id=Income_Statement) The detailed income statement shows a net income of $113.5 million for Q2 2025, a decrease from $119.5 million in Q1 2025 Income Statement Summary (in thousands) | Line Item | Q2 2025 (in thousands) | Q1 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | :--- | | Net Interest Income | $276,959 | $269,905 | $270,430 | | Provision for Credit Losses | $14,925 | $10,462 | $8,723 | | Noninterest Income | $98,524 | $94,791 | $89,174 | | Noninterest Expense | $215,979 | $205,059 | $206,016 | | **Net Income** | **$113,531** | **$119,504** | **$114,557** | [Balance Sheet](index=11&type=section&id=Balance_Sheet) The period-end balance sheet as of June 30, 2025, shows total assets of $35.2 billion, an increase from the prior quarter Period-End Balance Sheet Summary (in thousands) | Line Item | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | June 30, 2024 (in thousands) | | :--- | :--- | :--- | :--- | | Total Loans | $23,461,750 | $23,098,146 | $23,911,616 | | Total Assets | $35,212,652 | $34,750,680 | $35,412,291 | | Total Deposits | $29,046,612 | $29,194,733 | $29,200,718 | | Total Common Stockholders' Equity | $4,365,419 | $4,278,672 | $3,920,718 | [Average Balance Sheet and Net Interest Margin Summary](index=12&type=section&id=Average_Balance_Sheet_and_Net_Interest_Margin_Summary) This section details the average balances for assets and liabilities during the quarter, which form the basis for the Net Interest Margin (NIM) calculation Net Interest Margin (TE) Summary (Q2 2025) | Metric | Value (%) | | :--- | :--- | | Average Earning Assets | $32.1B | | Average Earning Assets Yield (TE) | 5.06% | | Total Cost of Funds | 1.57% | | Net Interest Spread (TE) | 2.46% | | **Net Interest Margin (TE)** | **3.49%** | [Asset Quality Information](index=15&type=section&id=Asset_Quality_Information) This provides a detailed breakdown of asset quality metrics Asset Quality Metrics (June 30, 2025) | Metric | Value (in millions) | | :--- | :--- | | Nonaccrual Loans | $94.9M | | Nonaccrual Loans as a % of Loans | 0.40% | | Total Allowance for Credit Losses (ACL) | $340.3M | | ACL as a % of Period-End Loans | 1.45% | | Net Charge-Offs (Q2 2025) | $17.8M | [Other Information](index=4&type=section&id=Other_Information) This section provides details on the upcoming conference call, clarifies the use of non-GAAP financial measures, and includes reconciliations for these metrics [Conference Call Information](index=4&type=section&id=Conference_Call_Information) Management will host a conference call for analysts and investors to review the second quarter 2025 results - A conference call to discuss Q2 2025 results is scheduled for **July 15, 2025, at 3:30 p.m. Central Time**[22](index=22&type=chunk) [Non-GAAP Financial Measures and Forward-Looking Statements](index=4&type=section&id=Non-GAAP_Financial_Measures_and_Forward-Looking_Statements) This section clarifies the use of non-GAAP financial measures, such as figures presented on a fully taxable equivalent (TE) basis, adjusted pre-provision net revenue (PPNR), and an adjusted efficiency ratio - The company uses non-GAAP measures, including presenting net interest income and margin on a taxable-equivalent (TE) basis, to enhance comparability[25](index=25&type=chunk)[26](index=26&type=chunk) - Adjusted Pre-Provision Net Revenue (PPNR) and an adjusted Efficiency Ratio are presented to exclude certain items, such as acquisition costs, to better reflect ongoing business trends[27](index=27&type=chunk)[28](index=28&type=chunk) - The release contains forward-looking statements regarding performance, growth, and economic conditions, which are subject to significant risks and uncertainties[29](index=29&type=chunk)[31](index=31&type=chunk) [Appendix A: Reconciliation of Non-GAAP Measures](index=17&type=section&id=Appendix_A_Reconciliation_of_Non-GAAP_Measures) This appendix provides the necessary reconciliations for the non-GAAP measures used in the report Reconciliation to Adjusted Pre-Provision Net Revenue (TE) (Q2 2025, in thousands) | Line Item | Amount (in thousands) | | :--- | :--- | | Net Income (GAAP) | $113,531 | | Plus: Provision for credit losses | $14,925 | | Plus: Income tax expense | $31,048 | | Plus: Taxable equivalent adjustment | $2,496 | | Plus: Sabal Trust acquisition expense | $5,911 | | **Adjusted pre-provision net revenue (TE)** | **$167,911** | Efficiency Ratio Calculation (Q2 2025, in thousands) | Line Item | Amount (in thousands) | | :--- | :--- | | Total revenue (TE) | $377,979 | | GAAP Noninterest expense | $215,979 | | Less: Amortization of intangibles | ($2,524) | | Less: Sabal Trust acquisition expense | ($5,911) | | **Adjusted noninterest expense** | **$207,544** | | **Efficiency ratio** | 54.91% |