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].

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it [1] - The service includes access to a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] Offerings - Subscribers can take advantage of a two-week free trial to explore the services related to oil and gas investments [2]

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

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

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

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

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

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

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