[Third Quarter 2025 Earnings Overview](index=1&type=section&id=Third%20Quarter%202025%20Earnings%20Overview) Hancock Whitney Corporation reported strong Q3 2025 financial results with significant net income and EPS growth, driven by improved profitability, operational efficiency, and strategic capital deployment [Executive Summary](index=1&type=section&id=1.1%20Executive%20Summary) Hancock Whitney Corporation reported strong financial results for the third quarter of 2025, with net income increasing significantly quarter-over-quarter and year-over-year, achieving a diluted EPS of $1.49 Quarterly Financial Performance | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Income (millions) | $127.5 | $113.5 | $115.6 | | Diluted EPS | $1.49 | $1.32 | $1.33 | - The second quarter of 2025 included **$5.9 million**, or **$0.05 per share**, of supplemental disclosure items related to the acquisition of Sabal Trust Company, which were not present in Q3 2025 or Q3 2024[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=1.2%20CEO%20Commentary) President & CEO John M. Hairston highlighted the exceptionally strong performance in Q3 2025, noting continued improvement in profitability and progress on growth plans - CEO John M. Hairston stated that Q3 2025 results reflect 'another quarter of exceptionally strong performance,' with continued improvement in profitability and progress on growth plans[3](index=3&type=chunk) Key Performance Ratios | Metric | Q3 2025 | Change from Q2 2025 | | :---------------- | :-------- | :------------------ | | ROA | 1.46% | +0.14% | | Efficiency Ratio | 54.10% | -0.81% | | NIM | 3.49% | Stable | - The company repurchased **662,500 shares** of common stock, contributing to capital deployment[3](index=3&type=chunk) [Key Financial and Operational Highlights](index=1&type=section&id=1.3%20Key%20Financial%20and%20Operational%20Highlights) The third quarter saw a significant increase in net income and adjusted pre-provision net revenue (PPNR), modest loan growth, and a linked-quarter decrease in deposits Q3 2025 Financial and Operational Metrics | Metric | Q3 2025 | Change from Q2 2025 | | :-------------------------------------- | :------------------ | :------------------ | | Net Income | $127.5 million | Up $14.0 million | | Adjusted PPNR | $175.6 million | Up $7.6 million (5%)| | Loans | Up $134.8 million (2% LQA) | | Deposits | Down $386.9 million (5% LQA) | | ACL Coverage | 1.45% | Unchanged | | NIM | 3.49% | Consistent | | CET1 Ratio (estimated) | 14.08% | Up 11 bps | | TCE Ratio | 10.01% | Up 17 bps | | Total Risk-Based Capital Ratio (estimated)| 15.91% | Up 9 bps | | Efficiency Ratio | 54.10% | Improved 81 bps | - Criticized commercial loans continued to moderate, while nonaccrual loans increased[4](index=4&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) This section details Q3 2025 performance, covering modest loan growth, a linked-quarter deposit decrease, solid asset quality with increased nonaccrual loans, stable net interest margin, increased noninterest income, and strengthened capital [Loans](index=2&type=section&id=2.1%20Loans) Total loans at the end of Q3 2025 showed a modest increase linked-quarter, driven by growth in commercial real estate and equipment finance, partially offset by higher payoffs and lower credit line utilization Loan Balances | Metric | 9/30/2025 | Change from 6/30/2025 | | :------------ | :------------------ | :-------------------- | | Total Loans | $23.6 billion | Up $134.8 million (1%)| | Average Loans | $23.4 billion (Q3) | Up $176.7 million (1%)| - Loan growth was primarily in commercial real estate (owner-occupied and income-producing) and equipment finance loans[5](index=5&type=chunk) - The company expects low-single digit loan growth year-over-year and in the fourth quarter of 2025[6](index=6&type=chunk) [Deposits](index=2&type=section&id=2.2%20Deposits) Total deposits decreased linked-quarter, primarily due to a decline in noninterest-bearing DDAs attributed to seasonality, expected temporary balance outflows, and reduced public fund DDA balances Deposit Balances by Type | Metric | 9/30/2025 | Change from 6/30/2025 | | :----------------------------------- | :------------------ | :-------------------- | | Total Deposits | $28.7 billion | Down $386.9 million (1%)| | Noninterest-Bearing DDAs | $10.3 billion | Down $333.5 million (3%)| | Interest-Bearing Transaction & Savings | $11.8 billion | Up $278.0 million (2%)| | Retail Time Deposits | $3.8 billion | Down $145.4 million (4%)| | Interest-Bearing Public Fund Deposits| $2.8 billion | Down $186.0 million (6%)| - The decrease in noninterest-bearing DDAs was linked to unfavorable seasonality, expected outflows of temporary balances, and a decrease in public fund DDA balances[7](index=7&type=chunk) - Management expects 2025 period-end deposit levels to be up low-single digits from December 31, 2024 levels[10](index=10&type=chunk) [Asset Quality](index=2&type=section&id=2.3%20Asset%20Quality) Asset quality remained solid with a stable Allowance for Credit Losses (ACL) to period-end loans ratio, though nonaccrual loans increased Credit Loss and Charge-off Trends | Metric | 9/30/2025 | Change from 6/30/2025 | | :-------------------------------------- | :------------------ | :-------------------- | | Total ACL | $341.5 million | Up $1.2 million (<1%)| | Provision for Credit Losses | $12.7 million | Down $2.2 million | | Net Charge-offs | $11.4 million | Down $6.4 million | | Annualized Net Charge-offs to Average Loans | 0.19% | Down 0.12% | | ACL to Period-End Loans | 1.45% | Consistent | Criticized and Nonaccrual Assets | Metric | 9/30/2025 | 6/30/2025 | | :-------------------------------------- | :------------------ | :------------------ | | Criticized Commercial Loans | $549.2 million (3.01% of total) | $569.3 million (3.15% of total) | | Nonaccrual Loans | $113.6 million (0.48% of total) | $94.9 million (0.40% of total) | | ORE and Foreclosed Assets | $11.1 million | $26.8 million | [Net Interest Income and Net Interest Margin (NIM)](index=3&type=section&id=2.4%20Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20(NIM)) Net interest income (TE) increased slightly linked-quarter, and the net interest margin (TE) remained stable at 3.49% despite a falling rate environment Net Interest Income and Margin | Metric | Q3 2025 | Change from Q2 2025 | | :-------------------------- | :------------------ | :------------------ | | Net Interest Income (TE) | $282.3 million | Up $2.9 million (1%)| | Net Interest Margin (TE) | 3.49% | Flat | | Average Earning Assets | $32.2 billion | Up $132.5 million (<1%)| - NIM stability was supported by securities yields (**+2 bps**) and better earning assets mix and higher average loans (**+2 bps**), which offset unfavorable other borrowings volumes and rates (**-4 bps**)[14](index=14&type=chunk) [Noninterest Income](index=3&type=section&id=2.5%20Noninterest%20Income) Noninterest income saw an 8% increase linked-quarter, driven by higher client account activity, increased annuity sales, higher investment trading fees, and additional revenue from the Sabal Trust Company acquisition Noninterest Income Breakdown | Metric | Q3 2025 | Change from Q2 2025 | | :---------------------- | :------------------ | :------------------ | | Total Noninterest Income| $106.0 million | Up $7.5 million (8%)| | Service Charges on Deposits | Up $1.0 million (4%)| | Investment & Annuity Income & Insurance Fees | Up $3.9 million (37%)| | Trust Fees | Up $1.5 million (6%)| | Secondary Mortgage Operations | Down $0.7 million (16%)| | Other Noninterest Income| Up $2.0 million (14%)| - The increase in other noninterest income was primarily due to higher syndication fees, gains on the sale of leases and SBA loans, and higher BOLI income[18](index=18&type=chunk) [Noninterest Expense & Taxes](index=3&type=section&id=2.6%20Noninterest%20Expense%20%26%20Taxes) Total noninterest expense decreased linked-quarter, largely due to the absence of one-time acquisition-related expenses present in the prior quarter Noninterest Expense and Tax Rate | Metric | Q3 2025 | Change from Q2 2025 | | :---------------------- | :------------------ | :------------------ | | Total Noninterest Expense| $212.8 million | Down $3.2 million (1%)| | Personnel Expense | $122.0 million | Up $5.5 million (5%)| | Other Expenses | $70.2 million | Down $7.2 million (9%)| | Effective Income Tax Rate| 20.5% | | - The decrease in total noninterest expense was influenced by the absence of **$5.9 million** in Sabal Trust Company acquisition-related expenses incurred in Q2 2025[19](index=19&type=chunk) - Personnel expense increased due to hiring efforts, one additional work day, and higher incentive expenses[20](index=20&type=chunk) [Capital](index=4&type=section&id=2.7%20Capital) The company's capital position strengthened in Q3 2025, with increases across all key capital ratios, and continued its share buyback program Capital Ratios and Equity | Metric | 9/30/2025 | Change from 6/30/2025 | | :-------------------------------------- | :------------------ | :-------------------- | | Common Stockholders' Equity | $4.5 billion | Up $109.1 million (2%)| | Tangible Common Equity (TCE) Ratio | 10.01% | Up 17 bps | | CET1 Ratio (estimated) | 14.08% | Up 11 bps | | Total Risk-Based Capital Ratio (estimated)| 15.91% | Up 9 bps | - The company repurchased **662,500 shares** of its common stock at an average price of **$60.45 per share**, as part of its ongoing share buyback program[24](index=24&type=chunk) [Corporate Information and Disclosures](index=4&type=section&id=Corporate%20Information%20and%20Disclosures) This section provides details on the Q3 2025 earnings conference call, an overview of Hancock Whitney's operations, explanations of non-GAAP financial measures, and important forward-looking statements [Conference Call and Investor Relations](index=4&type=section&id=3.1%20Conference%20Call%20and%20Investor%20Relations) Hancock Whitney hosted a conference call for analysts and investors on October 14, 2025, to discuss the third quarter results, with details for accessing the live webcast, slide presentation, and audio archive provided - A conference call for analysts and investors was held on **October 14, 2025**, at **3:30 p.m. Central Time**[25](index=25&type=chunk) - A live listen-only webcast and slide presentation were available on the Investor Relations section of Hancock Whitney's website[25](index=25&type=chunk) - An audio archive and replay of the call were made available through **October 21, 2025**[26](index=26&type=chunk) [About Hancock Whitney](index=4&type=section&id=3.2%20About%20Hancock%20Whitney) Hancock Whitney is a financial institution with a long history, operating across Mississippi, Alabama, Florida, Louisiana, and Texas, offering a comprehensive range of financial products and services - Hancock Whitney has embodied core values of Honor & Integrity, Strength & Stability, Commitment to Service, Teamwork, and Personal Responsibility since the late 1800s[27](index=27&type=chunk) - The company operates offices and financial centers in Mississippi, Alabama, Florida, Louisiana, and Texas, and loan/deposit production offices in Nashville, Tennessee, and Atlanta, Georgia[27](index=27&type=chunk) - Services include traditional and online banking, commercial and small business banking, private banking, trust and investment services, healthcare banking, and mortgage services[27](index=27&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=3.3%20Non-GAAP%20Financial%20Measures) The report includes non-GAAP financial measures to provide a clearer understanding of Hancock Whitney's performance and to assist investors in assessing management's strategic execution - Non-GAAP financial measures are used to describe performance and should not be considered alternatives to GAAP-basis financial statements[28](index=28&type=chunk) - The company presents net interest income, net interest margin, and efficiency ratios on a fully taxable equivalent (TE) basis for industry comparability[29](index=29&type=chunk) - Adjusted Pre-Provision Net Revenue, Adjusted Revenue, Adjusted Noninterest Expense, and the Efficiency Ratio are defined and used to provide a measure more indicative of forward-looking trends and to demonstrate the effects of significant gains or losses[31](index=31&type=chunk)[32](index=32&type=chunk) [Forward-Looking Statements](index=5&type=section&id=3.4%20Forward-Looking%20Statements) The release contains forward-looking statements regarding future performance, financial condition, and various economic and operational factors, which are subject to significant risks and uncertainties - The release includes forward-looking statements concerning expectations for performance, financial condition, balance sheet and revenue growth, credit losses, capital levels, deposits, and the impact of economic conditions[33](index=33&type=chunk) - Forward-looking statements are based on current beliefs and expectations of management and are subject to significant risks and uncertainties, as outlined in the company's SEC filings[34](index=34&type=chunk)[35](index=35&type=chunk) - The company does not assume any obligation to update these statements in light of new information or future events[34](index=34&type=chunk) [Financial Tables](index=7&type=section&id=Financial%20Tables) This section provides comprehensive financial tables, including highlights, detailed income statements, balance sheet data, net interest margin analysis, asset quality metrics, and reconciliations of non-GAAP measures [Financial Highlights](index=7&type=section&id=4.1%20Financial%20Highlights) This section provides a summary of key financial metrics for Hancock Whitney Corporation, including net income, balance sheet data, common share data, and performance ratios, presented for both three-month and nine-month periods Quarterly Financial Highlights | Metric (3 Months Ended) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :---------------------- | :-------- | :-------- | :-------- | | Net Income | $127,466 | $113,531 | $115,572 | | Diluted EPS | $1.49 | $1.32 | $1.33 | | Total Loans | $23,596,565 | $23,461,750 | $23,455,587 | | Total Deposits | $28,659,750 | $29,046,612 | $28,982,905 | | Return on Average Assets| 1.46% | 1.32% | 1.32% | | Net Interest Margin (TE)| 3.49% | 3.49% | 3.39% | | Efficiency Ratio | 54.10% | 54.91% | 54.42% | Year-to-Date Financial Highlights | Metric (9 Months Ended) | 9/30/2025 | 9/30/2024 | | :---------------------- | :-------- | :-------- | | Net Income | $360,501 | $338,741 | | Diluted EPS | $4.17 | $3.88 | | Return on Average Assets| 1.40% | 1.29% | | Net Interest Margin (TE)| 3.47% | 3.36% | | Efficiency Ratio | 54.73% | 55.67% | [Income Statement](index=9&type=section&id=4.2%20Income%20Statement) This section presents the detailed income statement, breaking down interest income and expense, net interest income, provision for credit losses, noninterest income, and noninterest expense for the three and nine months ended September 30, 2025, with comparative periods Quarterly Income Statement Summary | Metric (3 Months Ended) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :---------------------- | :-------- | :-------- | :-------- | | Interest Income (TE) | $411,591 | $405,077 | $432,169 | | Interest Expense | $129,282 | $125,622 | $157,712 | | Net Interest Income (TE)| $282,309 | $279,455 | $274,457 | | Provision for Credit Losses | $12,651 | $14,925 | $18,564 | | Noninterest Income | $106,001 | $98,524 | $95,895 | | Noninterest Expense | $212,753 | $215,979 | $203,839 | | Net Income | $127,466 | $113,531 | $115,572 | Quarterly Noninterest Income Details | Noninterest Income (3 Months Ended) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :---------------------------------- | :-------- | :-------- | :-------- | | Service Charges on Deposit Accounts | $25,220 | $24,256 | $23,144 | | Trust Fees | $24,211 | $22,753 | $18,014 | | Bank Card and ATM Fees | $21,814 | $22,004 | $21,639 | | Investment and Annuity Fees and Insurance Commissions | $14,507 | $10,603 | $10,890 | | Secondary Mortgage Market Operations| $3,475 | $4,147 | $3,379 | | Other Income | $16,774 | $14,761 | $18,829 | Quarterly Noninterest Expense Details | Noninterest Expense (3 Months Ended) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :----------------------------------- | :-------- | :-------- | :-------- | | Personnel Expense | $122,022 | $116,512 | $115,771 | | Net Occupancy and Equipment Expense | $18,222 | $18,366 | $18,127 | | Other Expense | $70,152 | $77,396 | $68,060 | | Amortization of Intangibles | $2,694 | $2,524 | $2,292 | [Balance Sheet Data](index=11&type=section&id=4.3%20Balance%20Sheet%20Data) This section provides detailed period-end and average balance sheet data, including assets, liabilities, and common stockholders' equity, along with key capital ratios, for the most recent quarter and historical periods Period-End Balance Sheet and Capital Ratios | Metric (Period-End) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :------------------ | :-------- | :-------- | :-------- | | Total Assets | $35,766,407 | $35,212,652 | $35,238,107 | | Total Loans | $23,596,565 | $23,461,750 | $23,455,587 | | Total Deposits | $28,659,750 | $29,046,612 | $28,982,905 | | Noninterest-Bearing Deposits | $10,305,303 | $10,638,785 | $10,499,476 | | Common Stockholders' Equity | $4,474,479 | $4,365,419 | $4,174,687 | | Tangible Common Equity Ratio | 10.01% | 9.84% | 9.56% | | CET1 Ratio (estimated) | 14.08% | 13.97% | 13.78% | Average Balance Sheet Data | Metric (Average Balance) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :----------------------- | :-------- | :-------- | :-------- | | Total Assets | $34,751,209 | $34,527,276 | $34,780,386 | | Total Loans | $23,425,895 | $23,249,241 | $23,552,002 | | Total Deposits | $28,492,076 | $28,649,900 | $28,940,163 | | Common Stockholders' Equity | $4,368,746 | $4,284,279 | $4,021,211 | [Average Balance and Net Interest Margin Summary](index=13&type=section&id=4.4%20Average%20Balance%20and%20Net%20Interest%20Margin%20Summary) This section provides a detailed breakdown of average earning assets and interest-bearing liabilities, along with their respective interest income/expense and rates, to illustrate the calculation of net interest spread and net interest margin Quarterly Net Interest Margin Analysis | Metric (3 Months Ended) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :---------------------- | :-------- | :-------- | :-------- | | Average Earning Assets (millions) | $32,213.6 | $32,081.1 | $32,263.7 | | Average Earning Assets Yield (TE) | 5.08% | 5.06% | 5.34% | | Total Interest-Bearing Liabilities Cost | 2.60% | 2.60% | 3.17% | | Net Interest Spread (TE)| 2.48% | 2.46% | 2.17% | | Net Interest Margin (TE)| 3.49% | 3.49% | 3.39% | Year-to-Date Net Interest Margin Analysis | Metric (9 Months Ended) | 9/30/2025 | 9/30/2024 | | :---------------------- | :-------- | :-------- | | Average Earning Assets (millions) | $32,106.9 | $32,452.6 | | Average Earning Assets Yield (TE) | 5.05% | 5.30% | | Total Interest-Bearing Liabilities Cost | 2.61% | 3.16% | | Net Interest Spread (TE)| 2.45% | 2.13% | | Net Interest Margin (TE)| 3.47% | 3.36% | [Asset Quality Information](index=15&type=section&id=4.5%20Asset%20Quality%20Information) This section provides comprehensive asset quality data, including nonaccrual loans, ORE and foreclosed assets, accruing loans past due, modified loans, and detailed information on the allowance for credit losses, provision, charge-offs, and recoveries for various loan categories Asset Quality Metrics | Metric (Period-End) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :------------------ | :-------- | :-------- | :-------- | | Nonaccrual Loans | $113,554 | $94,922 | $82,866 | | ORE and Foreclosed Assets | $11,140 | $26,847 | $27,732 | | Nonaccrual Loans as % of Loans | 0.48% | 0.40% | 0.35% | | Total ACL | $341,510 | $340,289 | $342,764 | | ACL as % of Period-End Loans | 1.45% | 1.45% | 1.46% | | ACL as % of Nonaccrual Loans | 276.20% | 329.94% | 382.87% | Net Charge-offs by Loan Category | Net Charge-offs (3 Months Ended) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :------------------------------- | :-------- | :-------- | :-------- | | Commercial & Real Estate Loans | $7,472 | $14,704 | $14,464 | | Residential Mortgage Loans | $181 | $196 | $28 | | Consumer Loans | $3,777 | $2,886 | $3,535 | | Total Net Charge-offs | $11,430 | $17,786 | $18,027 | | Total Net Charge-offs as % of Average Loans | 0.19% | 0.31% | 0.30% | [Reconciliation of Non-GAAP Measures](index=17&type=section&id=4.6%20Reconciliation%20of%20Non-GAAP%20Measures) This appendix provides reconciliations of non-GAAP financial measures, including Pre-Provision Net Revenue (TE) and Adjusted Pre-Provision Net Revenue (TE), as well as Revenue (TE), Adjusted Revenue (TE), and the Efficiency Ratio, to their most directly comparable GAAP measures Quarterly Non-GAAP Reconciliations | Metric (3 Months Ended) | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :---------------------- | :-------- | :-------- | :-------- | | Net Income (GAAP) | $127,466 | $113,531 | $115,572 | | Pre-provision net revenue (TE) | $175,557 | $162,000 | $166,513 | | Adjusted pre-provision net revenue (TE) | $175,557 | $167,911 | $166,513 | | Total revenue (TE) | $388,310 | $377,979 | $370,352 | | Adjusted noninterest expense for efficiency | $210,059 | $207,544 | $201,547 | | Efficiency ratio (o) | 54.10% | 54.91% | 54.42% | Year-to-Date Non-GAAP Reconciliations | Metric (9 Months Ended) | 9/30/2025 | 9/30/2024 | | :---------------------- | :-------- | :-------- | | Net Income (GAAP) | $360,501 | $338,741 | | Pre-provision net revenue (TE) | $500,000 | $472,059 | | Adjusted pre-provision net revenue (TE) | $505,911 | $475,859 | | Total revenue (TE) | $1,133,791 | $1,089,636 | | Adjusted noninterest expense for efficiency | $620,549 | $606,570 | | Efficiency ratio (o) | 54.73% | 55.67% |

Financial Earnings - BlackRock is expected to report Q3 earnings per share (EPS) of $11.26 on revenues of $6.2 billion, with a focus on organic base fee growth projected at 7% for the quarter [1] - Wells Fargo is projected to earn $1.55 per share on revenues of $21.15 billion, with particular attention on buyback activity and future capital return plans [1] - Goldman Sachs is expected to report EPS of $11 on revenue of $14.1 billion, with a consensus for a 15.4% year-over-year increase in investment banking fees [1] Healthcare Sector - Abbott Laboratories is expected to earn $1.30 per share on revenue of $11.4 billion, with a critical focus on the impact of China's volume-based procurement policy on its diagnostics segment [1] - Abbott's medical devices segment has consistently beaten Wall Street expectations for 10 consecutive quarters, particularly in its continuous glucose monitor business [1] Washington Updates - The market is closely monitoring the ongoing government shutdown and its potential impact on economic growth, with the Bureau of Labor Statistics calling back employees for the consumer price index report [2] - President Trump's announcement of a 100% additional tariff on Chinese imports starting Nov. 1 has heightened trade tensions, affecting market sentiment [2] Salesforce and AI Tools - Salesforce's annual Dreamforce conference is anticipated to provide insights into the value of its AI tools, with a focus on whether these tools can drive revenue growth amid concerns about AI's impact on traditional software models [2]

Earnings Results - Hancock Whitney Corporation is set to release its third-quarter earnings results on October 14, with analysts expecting earnings of $1.43 per share, an increase from $1.33 per share in the same period last year [1] - The company projects quarterly revenue of $391.24 million, compared to $370.35 million a year earlier [1] Recent Performance - On July 15, Hancock Whitney reported better-than-expected results for the second quarter, although its shares fell by 1.7% to close at $61.76 on Thursday [2] Analyst Ratings - Raymond James analyst Michael Rose maintained a Strong Buy rating and raised the price target from $68 to $73 [4] - DA Davidson analyst Gary Tenner maintained a Buy rating and increased the price target from $65 to $67 [4] - Piper Sandler analyst Stephen Scouten maintained an Overweight rating and raised the price target from $70 to $72 [4] - Keefe, Bruyette & Woods analyst Catherine Mealor maintained a Market Perform rating and increased the price target from $63 to $64 [4] - Stephens & Co. analyst Matt Olney maintained an Overweight rating but cut the price target from $73 to $69 [4]

Core Insights - Hancock Whitney Corporation is set to release its third-quarter earnings results on October 14, with analysts expecting earnings of $1.43 per share, an increase from $1.33 per share in the same period last year [1] - The company projects quarterly revenue of $391.24 million, up from $370.35 million a year earlier [1] Analyst Ratings - Raymond James analyst Michael Rose maintained a Strong Buy rating and raised the price target from $68 to $73 [4] - DA Davidson analyst Gary Tenner maintained a Buy rating and increased the price target from $65 to $67 [4] - Piper Sandler analyst Stephen Scouten maintained an Overweight rating and raised the price target from $70 to $72 [4] - Keefe, Bruyette & Woods analyst Catherine Mealor maintained a Market Perform rating and increased the price target from $63 to $64 [4] - Stephens & Co. analyst Matt Olney maintained an Overweight rating but reduced the price target from $73 to $69 [4]

Core Insights - Analysts project Hancock Whitney (HWC) will report quarterly earnings of $1.41 per share, a 6% increase year over year, with revenues expected to reach $387.84 million, up 5.5% from the same quarter last year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock performance [2] Key Metrics Projections - Analysts estimate the 'Net interest margin (TE)' at 3.5%, up from 3.4% year over year [4] - The 'Efficiency Ratio' is projected to be 56.1%, compared to 54.4% in the same quarter last year [4] - 'Average Balance - Total interest earning assets' is expected to reach $32.41 billion, slightly up from $32.26 billion year over year [4] Nonperforming Loans and Assets - 'Total nonperforming loans' are estimated at $94.44 million, up from $82.87 million year over year [5] - 'Total nonperforming assets' are projected to be $121.03 million, compared to $110.60 million last year [5] - 'Total Noninterest Income' is expected to be $102.86 million, an increase from $95.90 million year over year [5] Net Interest Income - 'Net interest income (TE)' is projected at $286.53 million, compared to $274.46 million last year [6] - The overall 'Net Interest Income' is expected to reach $283.83 million, up from $271.76 million in the same quarter of the previous year [6] Additional Income Streams - 'Secondary mortgage market operations' are estimated at $4.13 million, up from $3.38 million year over year [7] - 'Bank card and ATM fees' are projected to be $22.47 million, compared to $21.64 million last year [7] - 'Investment and annuity fees and insurance commissions' are expected to be $10.87 million, slightly down from $10.89 million year over year [8] - 'Other income' is estimated at $17.01 million, down from $18.83 million in the same quarter last year [8] Stock Performance - Over the past month, shares of Hancock Whitney have returned -0.5%, while the Zacks S&P 500 composite has changed by +4% [8]

Core Viewpoint - Hancock Whitney (HWC) is expected to report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with actual results being a significant factor in determining the stock's near-term price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to be released on October 14, with a consensus EPS estimate of $1.41, reflecting a +6% change year-over-year. Revenues are projected to be $387.84 million, up 5.5% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 0.17% higher in the last 30 days, indicating a collective reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +2.27% for Hancock Whitney, suggesting analysts have become more optimistic about the company's earnings prospects [12]. Historical Performance - Hancock Whitney has a history of beating consensus EPS estimates, having done so in the last four quarters, including a +2.24% surprise in the most recent quarter [13][14]. Investment Considerations - While Hancock Whitney is viewed as a strong candidate for an earnings beat, investors are advised to consider other factors that may influence stock performance beyond just earnings results [15][17].

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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].