Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q3 2025 was $0.94, excluding merger-related charges, representing a 68% increase year-over-year [4][11] - Net income, excluding restructuring and merger-related expenses, was $90 million for the quarter [4][11] - The net interest margin improved to 3.53%, up 58 basis points year-over-year [16] - Total assets increased by 49% year-over-year to $27.5 billion [12] - Total deposits grew by 53.8% year-over-year to $21.3 billion [14] Business Line Data and Key Metrics Changes - Fee income grew by 52% year-over-year, driven by organic growth across various business lines, particularly wealth management [4][12] - Non-interest income for Q3 was $44.9 million, a 51.5% increase year-over-year [17] - Commercial loan pipeline stood at approximately $1.5 billion, with over 40% tied to new markets [7] Market Data and Key Metrics Changes - Customer satisfaction scores in new markets rebounded to pre-conversion levels, with overall satisfaction in the upper 80% percentile [5] - Total portfolio loans increased by 52% year-over-year, driven by both acquired loans and organic growth [12] Company Strategy and Development Direction - The company is focused on operational excellence to support long-term profitable growth and enhance shareholder value [3] - Plans to optimize the financial center network include closing 27 centers and opening new ones in Tennessee and Ohio [9][10] - The strategy emphasizes organic growth through loan production offices (LPOs) and expanding into new markets [8][56] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about future loan growth despite challenges from commercial real estate payoffs, projecting mid-single-digit loan growth for 2025 [8][13] - The company anticipates a rebound in net interest margin during Q4 2025, reflecting improvements in funding costs and loan growth [21] - The effective tax rate is expected to be around 19.5% for the year [22] Other Important Information - The company raised $230 million in Series B preferred stock to redeem Series A preferred stock and subordinated debt [19] - The planned closure of financial centers is expected to generate approximately $6 million in net pre-tax annual savings [10] Q&A Session Summary Question: Loan growth and commercial real estate paydowns - Management reported strong loan production with a pipeline of $1.5 billion and expects mid-single-digit loan growth despite CRE paydowns [24][26] Question: Margin expectations - Management confirmed expectations for 3 to 5 basis points of quarterly margin expansion [27][28] Question: Impact of branch closures on expenses - Management indicated that branch closures will provide a tailwind to expenses, allowing for potential reinvestment in technology and personnel [35][37] Question: Healthcare team growth potential - The healthcare team has closed approximately $250 million in loans and could potentially reach $300 to $500 million in loans annually [43] Question: Deposit competition - Management noted that deposit competition remains similar to previous quarters, with no significant intensification [54] Question: Capital management and buyback plans - The company is focused on capital build and is less likely to pursue buybacks in the near term [49][51]

Financial Data and Key Metrics Changes - The company reported a record earnings per share of $2.84 for Q3 2025, with net income of $35.9 million, showing significant improvement compared to previous quarters [5][6] - Nonperforming loans decreased from $52 million to $17 million, primarily due to the foreclosure of a $37 million loan, which has since been sold for a gain [6][7] - Loan growth was 2.3% or $133 million, while deposit growth was 2.5% or $151 million, indicating a positive trend in customer optimism despite economic uncertainties [7][8] - The efficiency ratio improved to less than 30% due to increased net interest income, with operating overhead remaining steady [8] Business Line Data and Key Metrics Changes - The company experienced reasonable loan and deposit growth, with a focus on maintaining credit quality metrics stable [7][8] - The loan portfolio composition shifted, with 29% being fixed or long adjustable rates and 71% floating rates, of which 98% have floors [15] Market Data and Key Metrics Changes - The average margin for September was reported at 3.87%, with the cost of deposits at 3.36% [26] - The company has about $1.27 billion of CDs maturing at an average rate of 4.1% in Q4, with new CDs coming in at mid to high 3% [28] Company Strategy and Development Direction - The company aims to increase demand deposits while managing the cost of non-interest-bearing accounts strategically [40][42] - There is a focus on proactive interest rate management, with a significant reduction in floating rate loans from 90% to nearly 70% over the past year and a half [59] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about loan growth in Q4, expecting it to be similar to Q3, influenced by recent interest rate cuts [35][36] - The company anticipates a continued trend of refinancing as borrowers seek to lower their interest burdens, which may lead to increased payoffs [56] Other Important Information - The company repurchased $6.3 million of its own shares during the quarter, with additional repurchases of 128,000 shares in October for $11.2 million [8][19] - An error in calculating diluted earnings per share for the first half of 2025 was acknowledged, resulting in an underreporting of net income by $5 million, which has been corrected in the current report [9] Q&A Session Summary Question: Update on loan portfolio's floating rate component - As of September 30, 71% of the loan portfolio is floating rate, with 98% having floors, but many are not currently in the money [15] Question: Price sensitivity around the buyback - The buyback strategy is measured against income levels and share prices, with no set formula for the amount [17] Question: Average margin and cost of deposits - The margin for September was 3.87%, and the cost of deposits was 3.36% [26] Question: Expectations for near-term expense run rate - Non-interest expense is expected to be around 22% to 22.5% going forward, with increases anticipated in 2026 [38] Question: Insights on deposit composition and flows - There is a strategic focus on increasing non-interest-bearing demand deposits, but competition for these deposits is increasing [40][42] Question: Expected OREO gain in Q4 - The expected OREO gain is projected to be in the range of $3 million to $4 million [43]

Financial Data and Key Metrics Changes - The company reported net income of $17,800,000 for Q3 2025, an increase from $16,500,000 in the same period last year, translating to $1.56 per diluted common share compared to $1.41 [6][12] - Net interest income rose to $50,800,000, up by $2,800,000 or 5.8% from $48,000,000 year-over-year [6][13] - The annualized net interest margin improved to 3.72% from 3.42% a year ago, reflecting stable loan yield and effective funding cost control [7][13] - Non-interest expense increased to $36,100,000 from $33,700,000 in the prior year, primarily due to higher legal and professional fees [10][16] Business Line Data and Key Metrics Changes - Gross loans totaled $4,540,000,000, a decline of $223,000,000 or 4.7% from the end of 2024, mainly due to elevated commercial real estate and multifamily loan payoffs [7][20] - Construction lending showed solid momentum with total unfunded construction commitments steady at approximately $600,000,000 [8][20] - Non-interest income totaled $7,100,000, slightly up from $7,000,000 in the previous year, driven by improvements in commissions on annuity sales [15][16] Market Data and Key Metrics Changes - Total deposits decreased by $77,500,000 or 1.7% compared to the end of 2024, primarily due to a decrease in brokered deposits [20][21] - Nonperforming assets represented 0.14% of total assets, consistent with prior periods, indicating healthy asset quality [21][22] Company Strategy and Development Direction - The company remains focused on maintaining strong positions related to credit quality, capital, and liquidity despite competitive pressures [11][23] - A new stock repurchase authorization for up to 1,000,000 shares was approved, reflecting the company's commitment to returning value to shareholders [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent profitability while managing risks and expenses [5][11] - The outlook for loan growth is modest, with expectations to keep balances steady for the remainder of the year [28][30] Other Important Information - The efficiency ratio was reported at 62.45%, indicating a focus on cost control and operational efficiency [19] - The allowance for credit losses as a percentage of total loans stood at 1.43%, reflecting a slight increase from the previous quarter [22] Q&A Session Summary Question: Loan growth outlook and regional opportunities - Management highlighted opportunities across various regions including Texas and Atlanta, despite elevated payoffs [28] Question: Credit quality and potential weaknesses - Management noted no broad signs of weakness in the portfolio, emphasizing that any issues are idiosyncratic to specific projects [29] Question: Operating expenses outlook - Management indicated that operating expenses may stabilize around the current level, with some legal fees expected to decrease [37][38] Question: Commission income sustainability - Management acknowledged that commission income has been elevated but could fluctuate based on customer interest [40][41]

Financial Data and Key Metrics Changes - The company reported record net income of $123.6 million and record EPS of $0.63 for Q3 2025, with revenue of $277.7 million and pretax pre-provision net revenue of $162.8 million, resulting in a profit percentage of 58.64% [5][14] - The efficiency ratio improved to 40.21%, marking the best performance in the last twelve months, while the net interest margin increased by 12 basis points to 4.56% [5][24] - Return on tangible common equity (ROTCE) remained strong at 18.28%, with common equity assets at 18.56% and tangible equity at 13.08% [6][7] Business Line Data and Key Metrics Changes - Loan production was robust, reaching nearly $1.3 billion, with $800 million coming from the Community Bank footprint, particularly strong in Florida [25] - The lending portfolio showed improvements in asset quality, with reductions in non-performing loans (NPLs) and criticized loans, while organic loan growth was recorded at $105 million for the quarter [27][28] Market Data and Key Metrics Changes - Deposits decreased slightly by $161 million, primarily due to customer tax payments made in July, but the company continues to focus on growing core deposits [24][44] - The company opened a new branch in San Antonio, indicating expansion into new markets [15] Company Strategy and Development Direction - The management emphasized a conservative approach to growth, focusing on resolving existing issues before pursuing new opportunities, particularly in light of past challenges from the Hapi acquisition [9][12] - The company is preparing for potential acquisitions, with a focus on finding the right targets and maintaining a strong balance sheet [75][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining net interest margin despite potential rate cuts, highlighting their proactive approach to adjusting rates [39][40] - The company remains optimistic about future growth opportunities, particularly in a lower rate environment that may stimulate demand for loans [93] Other Important Information - The Texas lawsuit has been settled, with the company receiving a partial payment and expecting further payments in Q4 [7][105] - The company reported gains from various sources, including a $1.9 million gain from sub-debt paydown and a $1.75 million gain related to the lawsuit [81][105] Q&A Session Summary Question: How is the company thinking about NIM and NII trends given recent rate cuts? - Management acknowledged that while lower rates typically pressure net interest income, they have historically maintained margins through quick adjustments and proactive management [39][40] Question: What is the outlook for deposit growth in a lower rate environment? - The company does not engage in aggressive CD promotions and prefers to maintain a strong position with insured depositors, indicating confidence in deposit stability [44] Question: How is the company addressing concerns about the government shutdown? - Management has not seen any immediate impact from the government shutdown and is prepared to offer deferments if necessary [49][51] Question: What is the company's perspective on credit quality amid broader market concerns? - Management reported a positive outlook on credit quality, noting improvements in asset quality metrics and a low level of expected losses [56][60] Question: What is the company's strategy regarding M&A? - The company is actively seeking acquisition opportunities and has signed a letter of intent for a potential deal, indicating readiness to move forward [75][78] Question: How does the company view profitability and expense management going forward? - Management indicated that while expenses were slightly up, there is potential for further reductions, which could enhance profitability [80][90]

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].

Financial Data and Key Metrics Changes - The company reported a fully diluted EPS of $0.38, a 65% increase over the prior year [4] - Net income for the quarter was $0.38 per diluted share, up 65% over the prior year [8] - Return on average assets was 1.19% and return on average equity was 14.15% [9] - Net interest margin (NIM) was 3.1%, down slightly from the prior quarter [9] - The efficiency ratio improved to 52.79% [9] - Tangible book value per share increased by $0.42 to $11.23 [9] Business Line Data and Key Metrics Changes - Average loans increased by $205.3 million or 11.5% compared to Q1 2024 [5] - Average deposits grew by $166.6 million or 8.1% compared to the same quarter last year [5] - The loan pipeline remains robust and diversified, with expectations for high single-digit to low double-digit loan and deposit growth in Q2 [6] Market Data and Key Metrics Changes - The Florida economy is forecasted to grow steadily in 2025, with a growing labor force and low unemployment [5] - The company surpassed the $2 billion loan mark, achieving a significant milestone [8] Company Strategy and Development Direction - The company emphasizes relationship-driven organic growth and has onboarded additional senior bankers to support business lending and deposit production [6][29] - The strategic focus is on maintaining credit quality and carefully vetting new loan production amid economic uncertainties [4][29] - The company plans for disciplined expense control to improve operating leverage [29] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment, particularly in light of recent trade deal progress [4] - The company anticipates continued growth in loans and deposits, tempered by economic uncertainties related to trade policies [29] - The management team is focused on maintaining a strong balance sheet while returning capital to investors through dividends [6][28] Other Important Information - The Board of Directors declared a cash dividend of $0.10 per share, to be paid on June 5, 2025 [6] - Noninterest income was 16.3% of total revenue, consistent with prior quarters [25] Q&A Session Summary Question: What drove the deposit growth in the quarter? - Management noted positive growth in Correspondent Banking and business banking, contributing to balanced deposit growth [36] Question: What is the outlook for NIM given the current conditions? - Management expects NIM to be flat to slightly up, anticipating potential rate cuts that could benefit deposit costs [38][40] Question: What is the impact of specialty verticals on deposits? - New hires in various verticals are expected to enhance deposit growth, particularly in HOA and business banking [46][48] Question: How should the expense base be viewed moving forward? - The expense base is expected to gradually increase due to new hires and performance-based bonuses [50] Question: What is the focus regarding capital growth? - The focus remains on organic growth rather than buybacks, given solid growth prospects [52]