Hancock Whitney (HWC) - 2025 Q3 - Quarterly Results

Third Quarter 2025 Earnings Overview 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 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] CEO Commentary 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] 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] Key Financial and Operational Highlights 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] Detailed Financial Performance 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 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] - The company expects low-single digit loan growth year-over-year and in the fourth quarter of 2025[6] Deposits 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] - Management expects 2025 period-end deposit levels to be up low-single digits from December 31, 2024 levels[10] Asset Quality 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) 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] Noninterest Income 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] Noninterest Expense & Taxes 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] - Personnel expense increased due to hiring efforts, one additional work day, and higher incentive expenses[20] Capital 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] Corporate Information and Disclosures 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 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] - A live listen-only webcast and slide presentation were available on the Investor Relations section of Hancock Whitney's website[25] - An audio archive and replay of the call were made available through October 21, 2025[26] About Hancock Whitney 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] - 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] - Services include traditional and online banking, commercial and small business banking, private banking, trust and investment services, healthcare banking, and mortgage services[27] Non-GAAP Financial Measures 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] - The company presents net interest income, net interest margin, and efficiency ratios on a fully taxable equivalent (TE) basis for industry comparability[29] - 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][32] Forward-Looking Statements 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] - 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][35] - The company does not assume any obligation to update these statements in light of new information or future events[34] Financial Tables 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 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 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 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 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 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 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% |