Hancock Whitney (HWC) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $119.5 million ($1.38 per share), up from $108.6 million in Q1 2024 but down from $122.1 million in Q4 2024; ROA was 1.41% and capital ratios improved.

• Fee income grew across most categories, NIM expanded to 3.43%, and expenses were well managed, rising only 1% sequentially.

• Capital return to shareholders increased via a 50% year-over-year dividend hike to $0.45 per share and repurchase of 350,000 shares.

• The Sabal Trust acquisition closed in May 2025, expected to have a positive but minimal financial impact.

• Loans and deposits both declined sequentially, mainly due to payoffs and seasonal public fund outflows, but capital and liquidity remained strong.

Financial highlights

• Net income for Q1 was $119.5 million ($1.38 per share), up 10% year-over-year; PPNR was $162.4 million, NIM rose to 3.43%.

• Net interest income (TE) was $272.7 million, up 1% year-over-year but down 1% sequentially.

• Noninterest income rose to $94.8 million, up 8% year-over-year, driven by service charges, trust fees, and mortgage operations.

• Noninterest expense was $205.1 million, up 1% sequentially, with an efficiency ratio of 55.22%.

• Provision for credit losses was $10.5 million, down from $13.0 million a year ago; net charge-offs were 0.18% of average loans.

Outlook and guidance

• Full-year 2025 guidance calls for low single-digit loan and deposit growth, with most growth in the second half.

• Net interest income (TE) expected to rise 3–4% with modest NIM expansion; noninterest income projected to increase 9–10%, including Sabal Trust impact.

• Noninterest expense growth guided at 4–5% for 2025, excluding one-time Sabal costs.

• PPNR expected to increase 6–7% from 2024 adjusted levels; efficiency ratio targeted at 54–56%.

• Effective tax rate for 2025 estimated at 20–21%.