Hancock Whitney (HWC) investor relations material

Executive summary

• Achieved strong third quarter results with net income of $127.5 million ($1.49 per share), up from $118 million ($1.37 per share) in Q2, and ROA of 1.46%, reflecting improved profitability and efficiency.

• Adjusted pre-provision net revenue reached $175.6 million, a 5% increase from the prior quarter.

• Net interest income expanded as average earning assets grew at higher yields, while deposit costs declined by 1 basis point.

• Fee income reached $106 million, up 8% from the prior quarter, led by record investment, insurance, and annuity fees.

• Continued progress on organic growth plan, including hiring 20 net new bankers and advancing Dallas market expansion.

Financial highlights

• Net interest income (TE) for Q3 2025 was $282.3 million, up 1% sequentially, with NIM stable at 3.49%.

• Noninterest income rose 8% sequentially to $106 million, driven by higher trust, investment, and annuity fees.

• Efficiency ratio improved to 54.1%, down 81 bps from Q2; year-to-date efficiency ratio down nearly 100 bps year-over-year.

• Loans grew $135 million (2% annualized), led by commercial real estate and equipment finance, but offset by higher paydowns.

• Deposits declined $387 million, mainly due to seasonal reductions in public fund balances.

Outlook and guidance

• Expect low single-digit loan growth for Q4 and full-year 2025 as paydowns persist.

• Deposit costs anticipated to decline further in Q4, following expected rate cuts in October and December.

• Guidance includes two 25 bps rate cuts in Q4; PPNR growth expected in the 5%-6% range, with a bias toward the upper end.

• Expense growth in Q4 expected to be higher than Q3, while fee growth may moderate due to seasonality.

• Continued focus on organic growth, with plans to increase hiring and expand branch network, especially in Dallas.