HWC — Hancock Whitney Corporation

Summary of Hancock Whitney Corporation Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Adjusted Net Income: $128 million, or $1.49 per share, up from $118 million, or $1.37 per share in Q2 2025.
• Return on Assets (ROA): Increased to 1.46% from 1.32% year-over-year.
• Net Interest Income (NII): Grew by $3 million (1%) to $297 million, with a stable Net Interest Margin (NIM) at 3.49%.
• Efficiency Ratio: Improved to 54.1% from 54.91% in the previous quarter.
• Loan Growth: Increased by $135 million (2% annualized), with production up 6% quarter-over-quarter and 46% year-over-year.
• Deposits: Decreased by $387 million, primarily due to seasonal reductions in public fund balances.
• Capital Ratios: Total Capital Ratio at 10.01% and Common Equity Tier 1 (CET1) at 14.08%. Share repurchases totaled $40 million.

2. Strategic Updates and Business Highlights

• Continued investment in hiring, with 20 net new bankers added, reflecting a 9% run rate.
• Progress on organic growth plan, with plans to open five new branches in the Dallas market by late 2025 or early 2026.
• Record high insurance and annuity fees contributed to an 8% increase in fee income, totaling $106 million.
• Focus on granular full relationship loans to improve yields and revenue.

3. Forward Guidance and Outlook

• Anticipate low single-digit loan growth for Q4 2025, with expectations for continued profitability.
• Projecting two rate cuts in late 2025, which may impact loan yields.
• Expectation of stable deposit costs and further reductions in the cost of funds due to upcoming rate cuts.
• Guidance for PPNR growth in Q4 is projected at 5% to 6%, with a bias toward the upper end.

4. Bad News, Challenges, or Points of Concern

• Loan Paydowns: Higher than expected, particularly in industrial sectors, impacting net loan growth.
• Deposit Decline: Seasonal activity led to a significant drop in deposits, which could affect liquidity.
• Non-accrual Loans: Increased slightly to $114 million, indicating potential credit quality concerns in the C&I space.
• Competitive Pressures: The landscape remains competitive, particularly in deposit pricing, though it has stabilized compared to previous cycles.

5. Notable Q&A Insights

• Loan Growth: Management indicated that while production levels are strong, paydowns are expected to remain high, necessitating aggressive hiring to maintain growth.
• Capital Management: Plans to maintain CET1 ratios between 11% and 11.5%, with a focus on organic growth and potential share repurchases.
• M&A Activity: Management is not currently focused on acquisitions but remains opportunistic.
• Market Dynamics: The company is optimistic about growth opportunities in Texas and other MSAs, particularly in light of disruptions in the banking sector that could lead to talent acquisition.

Overall, Hancock Whitney Corporation reported solid financial performance in Q3 2025, with strategic initiatives aimed at growth and profitability, despite facing challenges related to loan paydowns and deposit fluctuations.