Why Is Hancock Whitney (HWC) Down 1.5% Since Last Earnings Report?

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