Hancock Whitney (HWC) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $119.5 million ($1.38 per diluted 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 and noninterest income grew across most categories, with NIM expanding to 3.43% as funding costs were well managed.

• Expenses were tightly controlled, rising only 1% sequentially; efficiency ratio was 55.22%.

• Loan balances declined $201 million and deposits decreased $298 million, mainly due to large payoffs and seasonal public fund outflows, but growth is expected to resume in the second half of 2025.

• Quarterly dividend increased 50% year-over-year to $0.45 per share; 350,000 shares repurchased.

Financial highlights

• Net income was $119.5 million ($1.38 per share), up year-over-year; PPNR was $162.4 million.

• Net interest income (TE) was $272.7 million, up 1% year-over-year, but down 1% sequentially; NIM expanded by 2 bps to 3.43%.

• 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%.

• Cost of deposits declined to 1.70%; loan yield was 5.84%.

Outlook and guidance

• Loan and deposit growth for 2025 is projected in the low single digits, weighted to the second half.

• Net interest income (TE) expected to rise 3–4% for 2025, with modest NIM expansion; PPNR expected up 6–7%.

• Noninterest income projected to increase 9–10% for 2025, with Sabal Trust contributing significantly.

• Expense growth guidance unchanged at 4–5% for 2025, excluding one-time Sabal costs.

• Efficiency ratio targeted within 54–56% for FY25.