Hancock Whitney (HWC) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 net income was $122.1 million ($1.40 per share), up from $115.6 million ($1.33/share) in Q3 2024; full-year 2024 net income was $460.8 million ($5.28/share), up from $392.6 million ($4.50/share) in 2023.

• Announced all-cash acquisition of Sabal Trust Company, expected to close in 2Q25, immediately accretive to EPS and making Florida the largest wealth management fee state.

• Launched a multi-year organic growth plan, hiring revenue-generating associates and expanding in Florida and Texas with new financial centers.

• Loans decreased $156 million in Q4 2024, while deposits increased $510 million; year-end loans declined 3% and deposits declined 1% year-over-year.

• Asset quality remained strong with criticized commercial loans and nonaccrual loans normalizing; ACL coverage at 1.47%.

Financial highlights

• Net income for Q4 was $122 million ($1.40 per share), up $6 million and $0.07 per share from last quarter.

• NIM for Q4 2024 was 3.41%, up 2 bps from Q3 2024; full-year NIM was 3.37%.

• Noninterest income in Q4 2024 was $91.2 million, down 5% sequentially, mainly due to lower secondary mortgage and derivative income.

• Noninterest expense in Q4 2024 was $202.3 million, down 1% sequentially, with lower personnel costs.

• Efficiency ratio for Q4 2024 was 54.46%, up 4 bps sequentially; full-year efficiency ratio was 55.36%.

Outlook and guidance

• 2025 guidance (excluding Sabal Trust impact): expect mid-single digit loan growth and low single digit deposit growth.

• Net interest income expected to rise 3.5%-4.5% from FY24, with modest NIM expansion, assuming three 25 bp rate cuts in 2H25.

• Adjusted PPNR projected to increase 3%-4% from FY24; noninterest income up 3.5%-4.5%; noninterest expense up 4%-5%.

• Efficiency ratio expected to remain within 55-56% for FY25.

• Modest charge-offs and provision levels anticipated, with charge-offs in the upper teens to low 20s basis points.