Hancock Whitney (US:HWC)2025-10-14 21:32Financial Data and Key Metrics Changes - The company reported an ROA of 1.46%, up from 1.32% a year ago, indicating continued profitability improvement [6] - Adjusted net income for the quarter was nearly $128 million, or $1.49 per share, compared to $118 million, or $1.37 per share in the previous quarter [10] - The efficiency ratio improved to 54.1% from 54.91% in the prior quarter, and year-to-date efficiency ratio is 54.73%, down from 55.67% last year [11] Business Line Data and Key Metrics Changes - Fee income grew to $106 million, an increase of 8% from the prior quarter, with investment, insurance, and annuity fees leading the increase [6] - Loans grew by $135 million, or 2% annualized, with production increasing 6% quarter-over-quarter and 46% year-over-year [7] - Deposits decreased by $387 million, primarily due to seasonal activity in public fund DDA and interest-bearing accounts [8] Market Data and Key Metrics Changes - Interest-bearing transaction balances increased, while retail time deposits and DDA balances decreased, reflecting promotional pricing changes [8] - The company ended the quarter with a TCE of 10.01% and a common equity tier one ratio of 14.08% [8] Company Strategy and Development Direction - The company plans to open five new locations in the Dallas market, aiming for growth and profitability [9] - The focus remains on organic growth, with a goal of achieving more favorable loan yields and relationship revenue [7] - The company is optimistic about closing out 2025 with continued growth despite a dynamic macroeconomic environment [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and supporting clients, highlighting a strong capital stack and solid allowance for credit losses [9] - The company anticipates low single-digit growth in 2025, with expectations of continued paydowns impacting loan growth [8] - Management noted that while paydowns may persist, they are focused on increasing loan production to offset this [21] Other Important Information - The company repurchased 662,000 shares of common stock during the quarter, continuing to return capital to investors [8] - The company expects to maintain a strong capital position while being proactive in deploying capital for organic growth [26] Q&A Session Summary Question: Loan growth expectations and paydowns - Management indicated that loan production was strong, with a healthy growth rate, but paydowns are expected to continue due to project completions [18][21] Question: Capital management and M&A opportunities - Management clarified that they are not focused on M&A currently but are open to opportunistic approaches in the future [25][26] Question: Deposit growth expectations for Q4 - Management expects strong seasonal growth in public fund deposits and DDAs, projecting a total deposit growth of $400 million to $500 million [90][91] Question: Future growth in the Dallas market - The company plans to double its offices in the Dallas MSA and anticipates significant growth driven by business purpose clients [95][96] Question: Credit quality and criticized loans - Management expressed confidence in the moderation of criticized loans, noting improvements in client performance and refinancing activity [78][79]