Core Insights - Hancock Whitney (HWC) reported revenue of $364.7 million for Q1 2025, a 3% year-over-year increase, with EPS of $1.38 compared to $1.28 a year ago, indicating a positive trend in earnings performance [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $364.77 million, resulting in a revenue surprise of -0.02%, while the EPS exceeded expectations by 7.81% [1] Financial Performance Metrics - Net interest margin (TE) was reported at 3.4%, matching the average estimate from four analysts [4] - The efficiency ratio was 55.2%, better than the average estimate of 56.5% from four analysts [4] - Total net charge-offs as a percentage of average loans stood at 0.2%, aligning with the estimate from three analysts [4] - Average balance of total interest-earning assets was $32.02 billion, slightly below the estimate of $32.32 billion [4] - Total nonperforming loans were reported at $104.21 million, better than the estimate of $105.41 million [4] - Total nonperforming assets amounted to $130.90 million, lower than the average estimate of $138.12 million [4] - Total noninterest income was $94.79 million, exceeding the average estimate of $92.10 million [4] - Net interest income (TE) was $272.71 million, slightly below the average estimate of $276.21 million [4] - Net interest income was reported at $269.91 million, compared to the average estimate of $272.82 million [4] - Secondary mortgage market operations generated $3.47 million, surpassing the estimate of $3.25 million [4] - Bank card and ATM fees totaled $20.71 million, slightly below the average estimate of $20.92 million [4] - Investment and annuity fees and insurance commissions were reported at $11.42 million, lower than the estimate of $12.39 million [4] Stock Performance - Shares of Hancock Whitney have returned -7.3% over the past month, compared to a -3.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

What's Next for Hancock Whitney? Hancock Whitney, which belongs to the Zacks Banks - Southeast industry, posted revenues of $364.7 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.02%. This compares to year-ago revenues of $354.02 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly de ...

First Quarter 2025 Earnings Conference Call 4/15/2025 HANCOCK WHITNEY Important cautionary statement about forward-looking statements This presentation contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements that we may make include statements regarding our expectations of our performance and financial condition, balance sheet and revenue growth, the provisi ...

Financial Performance - Net income for Q1 2025 was $119.5 million, or $1.38 per diluted share, compared to $122.1 million, or $1.40 per diluted share in Q4 2024[1] - Net income for the three months ended March 31, 2025, was $119,504,000, compared to $122,074,000 for the previous quarter, reflecting a decrease of 1.3%[31] - Earnings per share (diluted) for the quarter was $1.38, compared to $1.40 in the previous quarter, a decline of 1.4%[31] - Pre-provision net revenue was reported at $159.6 million, a decrease from $162.4 million in the previous quarter, indicating a slight decline in profitability[50] - Total revenue (TE) for the quarter was $367.5 million, consistent with $367.5 million in the previous quarter, showing stable revenue generation[51] Asset and Loan Management - Total loans decreased by $201.3 million, or 1%, to $23.1 billion, driven by increased payoffs in large healthcare and commercial non-real estate credits[5] - Loans outstanding as of March 31, 2025, were $23,098,146,000, down from $23,299,447,000, a decrease of 0.9%[31] - Total loans decreased to $23,098,146,000 from $23,299,447,000, representing a decline of 0.86%[38] - Total average loans decreased slightly to $23.07 billion from $23.25 billion in the previous quarter, indicating a contraction in loan volume[47] Deposit Trends - Total deposits were $29.2 billion, down $298.1 million, or 1%, primarily due to a decrease in retail time deposits[6] - Total deposits decreased to $29,194,733,000 from $29,492,851,000, representing a decline of 1.0%[31] - Total deposits decreased to $28,752,416, down 1.22% from $29,108,381 in the previous quarter[40] Credit Quality and Allowance for Losses - The allowance for credit losses (ACL) was $343.2 million, with a coverage ratio of 1.49% of period-end loans, up from 1.47% at the end of Q4 2024[9] - The provision for credit losses was $10,462,000, down from $11,912,000, a decrease of 12.1%[31] - The provision for credit losses was $10.5 million, down from $11.9 million in the previous quarter, suggesting a more favorable outlook on credit risk[50] - Nonaccrual loans increased to $104.2 million as of March 31, 2025, up from $97.3 million at December 31, 2024, representing a 4.5% increase[47] - Net charge-offs for the quarter were $10.2 million, a decrease from $11.7 million in the prior quarter, reflecting improved credit quality[47] Capital and Equity - Common stockholders' equity increased to $4.3 billion, up $151.0 million, or 4%, from December 31, 2024[19] - The CET1 ratio was estimated at 14.51%, up 37 basis points linked-quarter, while the total risk-based capital ratio was 16.39%[19] - Common equity tier 1 (CET1) ratio improved to 14.51% from 14.14% in the previous quarter, indicating stronger capital position[38] - The tangible common equity ratio increased to 10.01% from 9.47%, reflecting a stronger capital position[31] Noninterest Income and Expenses - Noninterest income totaled $94.8 million, an increase of $3.6 million, or 4%, from the previous quarter[13] - Noninterest income increased to $94,791,000 from $91,209,000, marking a growth of 4.3%[31] - Total noninterest expense was $205,059,000, slightly up from $202,333,000 in the prior quarter, an increase of 0.85%[36] - Noninterest expense was $205.1 million, up $2.7 million, or 1%, linked-quarter[15] Efficiency and Profitability Ratios - Return on assets (ROA) was 1.41%, and net interest margin (NIM) increased to 3.43%, up 2 basis points from the prior quarter[3] - The efficiency ratio improved to 55.22% from 54.46%, indicating better cost management[31] - The efficiency ratio improved to 55.22%, compared to 54.46% in the prior quarter, indicating better cost management[51] Shareholder Actions - The company repurchased 350,000 shares at an average price of $59.25 per share as part of its share buyback program[19]

Financial Data and Key Metrics Changes - The company reported a net income of $120 million or $1.38 per share, down from $122 million or $1.40 per share in the previous quarter, but up 10% year-over-year [17] - The return on assets (ROA) was 1.41%, and the net interest margin (NIM) expanded by two basis points to 3.43% [8][18] - Total risk-based capital ended the quarter at 16.39%, with a common equity tier one ratio of 14.51% and a tangible common equity ratio of 10.01% [8][13] Business Line Data and Key Metrics Changes - Fee income is expected to increase by 9% to 10% year-over-year, driven by strong performance across most categories [10][25] - Loans decreased by $201 million due to higher payoffs in large healthcare and commercial non-real estate loans, with expectations for low single-digit loan growth in 2025 [10][11] - Deposits were down $298 million, primarily due to seasonal public fund outflows, but the DDA balance increased [12][21] Market Data and Key Metrics Changes - The company experienced a decrease in interest-bearing transaction accounts due to reduced promotional rates, while the DDA mix remained stable at 36% [12][21] - The overall cost of funds decreased by 14 basis points to 1.59%, with a reduction in deposit costs contributing to this decline [19][20] Company Strategy and Development Direction - The company plans to pivot to growth through both organic and inorganic means, including the acquisition of Sable Trust Company, expected to close on May 2nd [14][15] - The focus remains on granular, full-relationship loans to achieve favorable loan yields and relationship revenue [11] - The company is optimistic about growth prospects in the second half of the year despite current market volatility [15] Management's Comments on Operating Environment and Future Outlook - Management noted that client sentiment reflects some apprehension, but there is no immediate fear of a significant recession [46][47] - The company is closely monitoring macroeconomic trends and believes it is well-positioned to navigate challenges due to strong capital and liquidity [16][15] - Future guidance reflects expectations for modest NIM expansion and NII growth of 3% to 4% in 2025 [24] Other Important Information - The company repurchased 350,000 shares of common stock and increased its common stock dividend to 45 cents per share, a 50% increase from the previous year [13] - The criticized commercial loans decreased, while non-accrual loans increased at a slower pace than in the prior quarter [26] Q&A Session Summary Question: Why not increase the buyback given the capital accretion and slower loan growth outlook? - Management indicated that they are indeed increasing buybacks and are focused on maintaining or slightly increasing the current level of repurchases [34][36][38] Question: What are the current efforts to assess credit impacts from tariffs? - Management is evaluating various sectors that could be impacted and preparing plans for potential risks [40][41][44] Question: How much of the increase in the PPNR guide is related to Sable versus core performance? - The increase in the PPNR guide is attributed to both the expected contributions from Sable and continued growth in fee income lines [48][50] Question: Update on hiring process and its impact on growth outlook? - The company has added four bankers in Q1 and plans to hire 20 to 30 throughout the year, with a focus on high-growth markets [57][59][61] Question: Thoughts on M&A versus organic growth? - Currently, the focus is on returning capital to shareholders and organic growth, with M&A being considered for the future [69][70] Question: Expected CD maturities and rate benefits? - The company expects about $5.5 billion of CD maturities over the next three quarters, with a projected repricing benefit [124][125] Question: Loan growth expectations and pipeline comfort? - The company anticipates loan growth to be driven by new hires, with a strong pipeline expected for the second half of the year [132][136]

Core Insights - Hancock Whitney (HWC) is expected to report quarterly earnings of $1.28 per share, unchanged from the previous year, with revenues projected at $364.77 million, reflecting a 3% year-over-year increase [1] Earnings Estimates - The consensus EPS estimate has not changed over the past 30 days, indicating analysts have not revised their projections [2] - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3] Key Financial Metrics - Analysts forecast a 'Net interest margin (TE)' of 3.4%, up from 3.3% a year ago [5] - The 'Efficiency Ratio' is estimated at 56.5%, slightly higher than the previous year's 56.4% [5] - The 'Average Balance - Total interest earning assets' is projected at $32.32 billion, down from $32.56 billion year-over-year [5] Nonperforming Loans and Assets - 'Total nonperforming loans' are expected to reach $105.41 million, compared to $82.08 million last year [6] - 'Total nonperforming assets' are projected at $138.12 million, up from $84.88 million in the same quarter last year [6] Income Estimates - 'Total Noninterest Income' is expected to be $92.10 million, compared to $87.85 million a year ago [7] - 'Net interest income (TE)' is projected at $276.21 million, up from $269 million in the same quarter last year [7] - The consensus for 'Net Interest Income' stands at $272.82 million, compared to $266.17 million last year [7] Fee Income Estimates - 'Bank card and ATM fees' are estimated at $20.92 million, up from $20.62 million last year [8] - 'Investment and annuity fees and insurance commissions' are projected at $12.39 million, compared to $11.84 million a year ago [8] - 'Other income' is expected to be $13.90 million, up from $13.18 million last year [8] Service Charges - 'Service charges on deposit accounts' are projected to reach $23.28 million, compared to $22.24 million in the same quarter last year [9] Stock Performance - Over the past month, HWC shares have returned -0.7%, while the Zacks S&P 500 composite has changed by -5.3% [10] - HWC currently holds a Zacks Rank 3 (Hold), indicating its performance may align with the overall market in the near future [10]

Company Overview - Hancock Whitney (HWC) is based in Gulfport and operates in the Finance sector, with a year-to-date share price change of 2.74% [3] - The company currently pays a dividend of $0.4 per share, resulting in a dividend yield of 2.85%, which is higher than the Banks - Southeast industry's yield of 2.26% and the S&P 500's yield of 1.54% [3] Dividend Performance - The annualized dividend of Hancock Whitney is $1.60, reflecting a 6.7% increase from the previous year [4] - Over the last five years, the company has increased its dividend two times year-over-year, with an average annual increase of 7.74% [4] - The current payout ratio is 30%, indicating that the company pays out 30% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Hancock Whitney's earnings per share for 2025 is $5.48, representing a year-over-year growth rate of 3.01% [5] Investment Appeal - Hancock Whitney is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [7]

Financial Performance and Position - As of December 31, 2024, the company's total balance sheet was $35.1 billion, with loans amounting to $23.3 billion and deposits totaling $29.5 billion[26]. - As of December 31, 2024, the trust department managed approximately $34.9 billion in assets, with an expected increase of $3 billion from the acquisition of Sabal Trust Company in 2025[58]. - Brokered deposits totaled $6.9 million at December 31, 2024, and are fully insured by the FDIC, supporting ongoing asset growth[57]. - The bank's investment portfolio primarily consists of U.S. agency debt securities and municipal securities, with a target effective duration of two to five and a half years[50]. - The bank's loan portfolio includes commercial and industrial loans, which are used for working capital, business expansion, and equipment purchases[39]. Growth and Expansion Plans - The pending acquisition of Sabal Trust Company is expected to add approximately $3 billion in assets under management, enhancing the company's trust and asset management business[30]. - The company plans to open five additional financial centers in North Dallas in 2025 and is evaluating further expansion in Florida following the Sabal transaction[30]. - The company added seven new bankers in Q4 2024 to support its multiyear organic growth plan, aligning with anticipated growth rates for 2025[30]. - The company is actively evaluating future acquisition opportunities to increase shareholder value, contingent on economic conditions and capital levels[30]. Revenue Diversification and Strategy - The company aims to diversify its revenue sources from both new and existing clients through investments in new and enhanced products[30]. - The company's primary lending focus includes commercial, consumer, and real estate loans, with a strategy to maintain a balanced approach to loan profitability, growth, and credit quality[32]. - The bank's deposit strategies are influenced by market conditions, economic expectations, and customer confidence, with a focus on maintaining a stable and diversified deposit base[55]. Risk Management and Compliance - The bank employs an independent credit review team to monitor credit quality and compliance with regulations, aiding in early identification of credit problems[38]. - The bank's loan concentration policy includes limits on exposures to specific borrowers, industries, and property types, ensuring alignment with risk tolerance[35]. - The bank's underwriting process requires oversight proportional to the size and complexity of lending relationships, with delegated authority based on credit officer experience[36]. - The company is enhancing its anti-money laundering compliance programs in response to evolving regulatory requirements[130]. - The Company is required to comply with Sarbanes-Oxley Act regulations, including internal controls over financial reporting[151]. Human Capital and Diversity - The company’s total rewards programs are benchmarked against industry peers to remain competitive, utilizing third-party compensation and benefits surveys[71]. - The company has a pay-for-performance philosophy, with merit-based compensation increases and long-term incentive compensation to attract and retain talent[73]. - Approximately 68% of new hires in 2024 self-identified as female, and 39% as people of color, reflecting the company's commitment to diversity[67]. - The 2024 associate engagement survey indicated that nearly 75% of associates feel a sense of belonging and respect within the company[83]. Economic and Market Conditions - The company operates in an uncertain economic environment, with potential adverse effects on financial condition due to economic stagnation or recession[158]. - Heightened interest rates have adversely affected borrowers, increasing debt service requirements and potentially leading to higher delinquency rates[166]. - Changes in U.S. trade policies and tariffs may negatively impact the business and financial condition of customers, affecting their ability to service debt[173]. - Bank failures in 2023 have diminished public confidence in smaller banks, potentially leading to increased competition for deposits and pressure on net interest margins[176]. Operational and Cybersecurity Risks - Cybersecurity threats have increased, and any significant breach could disrupt operations and lead to financial losses, reputational damage, and client attrition[200]. - The company continuously enhances its security measures, but there is no guarantee that these will prevent all data security breaches or system compromises[200]. - Operational risks arise from reliance on automated systems and third-party providers, which could lead to significant disruptions if not managed properly[192]. - The company relies on third parties for essential services, and failures in these relationships could disrupt operations and adversely affect financial condition[201]. Regulatory Environment - The Company must maintain adequate capital to pay dividends, as per regulatory requirements, which may affect dividend payments[114]. - The Federal Reserve requires bank holding companies to consider financial stability when determining dividend levels[115]. - The Company is prohibited from acquiring more than 5% of any class of voting interests of any company engaged in non-permissible activities[99]. - The final rule to modernize CRA regulations will take effect on January 1, 2026, with revised data reporting requirements starting January 1, 2027[136].

Core Viewpoint - Hancock Whitney reported strong fourth-quarter earnings, surpassing estimates, driven by growth in non-interest income and net interest income (NII), despite a decline in total loans [2][3][4]. Financial Performance - The fourth-quarter 2024 earnings per share were $1.40, exceeding the Zacks Consensus Estimate of $1.28 and up from $1.26 in the previous year [2]. - Net income for the quarter was $122.1 million, significantly higher than $50.6 million in the prior-year quarter, and above the estimate of $108.4 million [3]. - Total revenues for the quarter reached $364.8 million, an increase of 18.3% year over year, surpassing the consensus estimate of $361.3 million [4]. Income and Expenses - Non-interest income totaled $91.2 million, driven by increases in trust fees and service charges, exceeding the projected $86.7 million [5]. - Total non-interest expenses decreased by 11.7% to $202.3 million, better than the expected $205.4 million [5]. - The efficiency ratio improved to 54.46% from 55.58% in the previous year, indicating enhanced profitability [6]. Credit Quality - The provision for credit losses was $11.9 million, down 29.7% from the prior-year quarter, with net charge-offs at 0.20% of average total loans, a decrease of 7 basis points [7]. Capital Ratios and Profitability - The Tier 1 leverage ratio improved to 11.29% from 10.10% year-over-year, and the common equity Tier 1 ratio rose to 14.14% from 12.33% [8]. - Return on average assets was 1.40%, up from 0.56% in the prior year, while return on average common equity increased to 11.74% from 5.64% [9]. Share Repurchase - In the reported quarter, Hancock Whitney repurchased 0.15 million shares at an average price of $52.50 per share [10]. 2025 Outlook - Management anticipates mid-single-digit growth in loan balances and low single-digit growth in deposits for 2025, with NII projected to increase by 3.5-4.5% year over year [11]. - Adjusted non-interest expenses are expected to rise by 4-5% from $816.1 million in 2024, with plans to hire additional personnel [12]. Strategic Objectives - By the fourth quarter of 2027, management aims for an adjusted return on assets between 1.40% and 1.50%, and an efficiency ratio of less than or equal to 55% [13]. Estimate Trends - There has been an upward trend in estimates, with a consensus estimate shift of 5.53% recently [14]. - Hancock Whitney holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [17]. Industry Performance - Hancock Whitney operates within the Zacks Banks - Southeast industry, where Regions Financial reported revenues of $1.82 billion, reflecting a year-over-year change of +0.2% [18].

Company Overview - Hancock Whitney (HWC) is headquartered in Gulfport and has experienced a price change of 10.14% this year [3] - The company currently pays a dividend of $0.4 per share, resulting in a dividend yield of 2.65%, which is higher than the Southeast banking industry's yield of 2.22% and the S&P 500's yield of 1.52% [3] Dividend Performance - The annualized dividend of Hancock Whitney is $1.60, reflecting a 6.7% increase from the previous year [4] - Over the past five years, the company has increased its dividend two times year-over-year, with an average annual increase of 7.74% [4] - The current payout ratio is 30%, indicating that the company pays out 30% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Hancock Whitney anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $5.43 per share, representing a 2.07% increase from the previous year [5] Investment Appeal - Hancock Whitney is viewed as an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [7]