Hancock Whitney Corp's Q2 Earnings Call Highlights Growth and Challenges

Hancock Whitney Corp reported strong Q2 earnings, driven by loan growth, fee income, and robust capital ratios. Net interest margin expanded six basis points, and fee income increased by 4%. However, deposits declined by $148 million, and net charge-offs rose to 31 basis points. The company expects modest NIM expansion and 3-4% net interest income growth for the year.

Hancock Whitney Corp (HWC) reported mixed results for its second quarter of 2025, with earnings per share (EPS) of $1.32, down from $1.38 in the previous quarter. The company's adjusted earnings per share of $1.37 exceeded the Zacks Consensus Estimate of $1.34, marking a 4.6% year-over-year increase [1].

The quarter was characterized by several key drivers. Net interest income (NII) increased by 2.3% year over year to $279.5 million, while non-interest income rose by 10.5% to $98.5 million. These increases were offset by higher adjusted expenses and provisions, as well as a decline in deposit balances. Total loans rose by 1.6% to $23.5 billion, while deposits fell marginally to $29 billion [1].

The company's net charge-offs rose to 0.31% of average total loans, up by 19 basis points from the prior year. The provision for credit losses increased by 71.1% to $14.9 million. Despite these challenges, the company's capital ratios improved, with the Tier 1 leverage ratio increasing to 11.39% and the common equity Tier 1 ratio rising to 14.03% [1].

Hancock Whitney expects modest net interest margin (NIM) expansion and 3-4% net interest income growth for the year. The company's strategic expansion initiatives, including the acquisition of Sabal Trust Company, are expected to support top-line growth. However, weak asset quality and higher expenses remain concerns [1].

The stock declined by 3.2% in the after-market session following the earnings release. The current average analyst rating on the shares is "buy," with 6 "strong buy" or "buy" recommendations, 2 "hold" recommendations, and no "sell" or "strong sell" recommendations. The median 12-month price target for HWC is $65.00, about 7.3% above its July 14 closing price of $60.23 [3].

References:
[1] https://www.nasdaq.com/articles/hwc-q2-earnings-beat-estimates-nii-fee-income-growth-stock-down
[2] https://www.gurufocus.com/news/2974465/hancock-whitney-corp-hwc-q2-2025-earnings-report-preview-what-to-look-for?mod=mw_quote_news&r=4bf001661e6fdd88d0cd7a5659ff9748
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX1087C5:0-hancock-whitney-q2-eps-falls-on-sequential-basis/