Hancock Whitney (US:HWC)2025-11-04 23:23Financial Performance - Net income for the three months ended September 30, 2025, was $127.47 million, compared to $115.57 million in the prior year, marking a year-over-year growth of approximately 10.5%[15] - Net income for the nine months ended September 30, 2025, was $360,501,000, an increase from $338,741,000 in the same period of 2024, representing a growth of approximately 6.5%[24] - Comprehensive income for the three months ended September 30, 2025, was $180.83 million, compared to $298.01 million in the same period of 2024, showing a decrease of about 39.4%[17] - Comprehensive income for the nine months ended September 30, 2025, totaled $550,133,000, compared to $484,372,000 for the same period in 2024, indicating an increase of about 13.6%[24] - Basic earnings per common share for the three months ended September 30, 2025, was $1.50, up from $1.33 in 2024, representing a 12.8% increase[125] Asset and Liability Management - Total assets increased to $35.77 billion as of September 30, 2025, compared to $35.08 billion at the end of 2024, reflecting a growth of approximately 1.96%[13] - Total deposits decreased to $28.66 billion as of September 30, 2025, from $29.49 billion at the end of 2024, a decline of about 2.8%[13] - The allowance for loan losses was $313.64 million as of September 30, 2025, slightly down from $318.88 million at the end of 2024, indicating a decrease of approximately 1.1%[13] - The company experienced a net decrease in deposits of $833,101,000 during the nine months ended September 30, 2025[24] - The company reported a net increase in short-term borrowings of $1,252,505,000 for the nine months ended September 30, 2025[24] Income and Expense Analysis - Net interest income for the three months ended September 30, 2025, was $279.74 million, up from $271.76 million in the same period of 2024, representing an increase of about 2.9%[15] - Noninterest income for the three months ended September 30, 2025, was $106.00 million, an increase from $95.90 million in the same period of 2024, representing an increase of approximately 10.9%[15] - Total noninterest expense for the three months ended September 30, 2025, was $212.75 million, compared to $203.84 million in the prior year, reflecting an increase of approximately 4.4%[15] - Total other noninterest income for the nine months ended September 30, 2025, was $48.588 million, compared to $45.271 million for the same period in 2024[121] - Total other noninterest expense for the three months ended September 30, 2025, was $21.456 million, compared to $20.472 million in 2024, reflecting a 4.8% increase[122] Loan Portfolio and Credit Quality - Total loans increased to $23,596,565 thousand as of September 30, 2025, up from $23,299,447 thousand at December 31, 2024, representing a growth of 1.28%[51] - The allowance for credit losses totaled $341,510 thousand at September 30, 2025, compared to $342,764 thousand at September 30, 2024, reflecting a slight decrease[64] - Nonaccrual loans increased to $113,554 thousand as of September 30, 2025, compared to $97,335 thousand at December 31, 2024, indicating a rise of 16.66%[66] - The provision for loan losses for the nine months ended September 30, 2025, was $34,217 thousand, compared to $43,656 thousand for the same period in 2024, a decrease of 21.66%[62] - The total balance of commercial non-real estate loans as of September 30, 2025, was $57,892 thousand, representing 0.60% of the portfolio[68] Securities and Investments - The amortized cost of available-for-sale securities was $6.203 billion with a fair value of $5.794 billion as of September 30, 2025[37] - The total debt securities held to maturity amounted to $2.198 billion with a fair value of $2.065 billion as of September 30, 2025[38] - The fair value of available-for-sale securities with unrealized losses totaled approximately $4.008 billion as of September 30, 2025[44] - The Company held no securities classified as trading at September 30, 2025[38] - The Company evaluated its held-to-maturity municipal obligation portfolio for credit loss, resulting in negligible credit losses and no allowance for credit loss recorded[45] Derivatives and Hedging - The notional amount of derivatives designated as hedging instruments was $2.12 billion as of September 30, 2025, with total derivative assets of $111.539 million and liabilities of $106.586 million[92] - The Company recorded $203.5 million of fair value hedges that became effective during the nine months ending September 30, 2025, impacting interest income[96] - The aggregate fair value of derivative instruments with credit risk-related contingent features was $17.5 million at September 30, 2025, down from $39.1 million at December 31, 2024[111] - The fair value of derivative liabilities was reported at $106,582,000 as of September 30, 2025, compared to $160,623,000 as of December 31, 2024[150] - The Company’s level 3 derivative liability decreased from $2,089,000 at December 31, 2024, to $1,855,000 at September 30, 2025[161] Shareholder and Capital Management - The company repurchased 1,762,500 shares of common stock for $100,930,000 during the nine months ended September 30, 2025[24] - Common shares outstanding were 8.1 million at September 30, 2025, excluding treasury shares valued at $354.3 million[114] - The company repurchased 1.8 million shares at an average cost of $56.80 per share during the nine months ended September 30, 2025[115] - The balance of Accumulated Other Comprehensive Income (Loss) was $(416.460) million as of September 30, 2025, compared to $(606.092) million at December 31, 2024[117] - The Company had commitments to extend credit totaling $9.474 billion as of September 30, 2025, an increase from $9.249 billion at December 31, 2024[145] Risk Management and Economic Outlook - Interest rate risk management policies are in place to stabilize net interest income under varying rate environments[324] - A 300 basis point increase in interest rates is projected to increase net interest income by 4.15% in Year 1 and 10.54% in Year 2[327] - Economic Value of Equity (EVE) is expected to decrease by 7.93% with a 300 basis point increase in interest rates[330] - The company is currently less sensitive to changes in short-term rate movements due to a shift in funding mix towards more rate-sensitive deposits[327] - Management intends to mitigate interest rate risk through various strategies, including modifying loan and deposit pricing and adjusting the composition of earning assets[327]