Why Is Hancock Whitney (HWC) Up 1% Since Last Earnings Report?

Core Viewpoint - Hancock Whitney's Q3 2025 earnings exceeded estimates, driven by growth in non-interest income and net interest income (NII), despite facing challenges from higher expenses and lower deposit balances [2][4][6]. Financial Performance - Earnings per share for Q3 2025 were $1.49, surpassing the Zacks Consensus Estimate of $1.41, and reflecting a 12% increase year-over-year [2]. - Net income reached $127.5 million, a 10.3% rise from the previous year, compared to an estimate of $119.5 million [3]. - Total revenues were $385.7 million, up 4.9% year-over-year, but fell short of the Zacks Consensus Estimate of $387.9 million [4]. Income and Expenses - Non-interest income totaled $106 million, marking a 10.5% increase, driven by growth in nearly all components except other income [5]. - Total non-interest expenses rose 4.4% to $212.8 million, slightly below the projected $217.4 million [5]. - The efficiency ratio improved to 54.10% from 54.42% in the prior year, indicating enhanced profitability [5]. Loan and Deposit Trends - Total loans stood at $23.6 billion, a slight increase from the prior quarter, while total deposits decreased by 1.3% to $28.7 billion [6]. - Management anticipates low single-digit growth in deposit balances for the fourth quarter, with public deposits expected to increase by $200-$300 million [12]. Credit Quality - The provision for credit losses was $12.7 million, down 31.9% from the previous year, indicating improved credit quality [7]. - Net charge-offs were 0.19% of average total loans, a decrease of 11 basis points from the prior year [7]. Capital Ratios and Profitability - As of September 30, 2025, the Tier 1 leverage ratio improved to 11.46%, and the common equity Tier 1 ratio rose to 14.08% [8]. - Return on average assets increased to 1.46% from 1.32%, while return on average common equity rose to 11.58% from 11.43% [8]. Share Repurchase Activity - In the reported quarter, Hancock Whitney repurchased 0.66 million shares at an average price of $60.45 per share [10]. Future Outlook - Management expects NII to grow at the lower end of the 3-4% range in Q4 2025, with a modest expansion in net interest margin [13]. - Adjusted non-interest expenses are projected to rise 4-5% in 2025, with plans to hire additional personnel for revenue generation [14]. - The company aims for an adjusted return on assets between 1.40% and 1.50% by Q4 2027 [16]. Market Sentiment - The stock has a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [20].