Hancock Whitney (HWC) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $113.5 million ($1.32 per diluted share), down from Q1 2025, impacted by $5.9 million in Sabal Trust acquisition costs; adjusted EPS was $1.37.

• Adjusted pre-provision net revenue rose 3% sequentially to $167.9 million; efficiency ratio improved to 54.91%.

• Loans grew 6.3% LQA (2% sequentially) to $23.5 billion, driven by stronger demand and higher utilization; deposits declined $148 million (1% sequentially) to $29.0 billion, reflecting CD maturities and seasonality.

• Nonaccrual and criticized commercial loans decreased; allowance for credit losses coverage at 1.45%.

• Acquisition of Sabal Trust Company completed May 2, 2025, expanding trust business and boosting fee income.

Financial highlights

• Net interest income (taxable equivalent) for Q2 2025 was $279.5 million, up 2% from Q1 2025; NIM expanded 6 bps to 3.49%.

• Noninterest income rose 4% to $98.5 million, led by trust fees and Sabal Trust contribution.

• Noninterest expense increased 5% to $216.0 million, including $5.9 million in one-time Sabal Trust acquisition costs.

• Net charge-offs were $17.8 million, or 0.31% of average loans, up from 0.18% in Q1 2025.

• CET1 ratio was 14.03%, TCE ratio 9.84%, and total risk-based capital ratio 15.87%, all slightly lower linked-quarter.

Outlook and guidance

• Management expects low single-digit loan and deposit growth for full-year 2025, with NII (TE) up 3–4% and modest NIM expansion.

• Noninterest income projected to increase 9–10% for 2025, including Sabal acquisition impact; adjusted noninterest expense expected to rise 4–5%.

• Net charge-offs as a percentage of average loans anticipated in the 0.15–0.25% range for 2025.

• Efficiency ratio targeted at 54–56% for FY25; adjusted ROA 1.40–1.50%, TCE ≥8%, adjusted ROTCE ≥18% by 4Q27.

• Continued focus on organic growth, profitability, and efficiency for the remainder of 2025.