- **Record Financials**: Q3 2025 ROA 1.46%, highest in 5 years; fee income up 8% QoQ to $106M.
- **Loan Growth Resilience**: $135M loan growth despite $114M SNC paydowns; production up 46% YoY.
- **Deposit Management**: Cost of funds 1.64%, lowest in 3 years; CD renewals 88% at lower rates.
- **Credit Quality**: Net charge-offs 19 bps, within 15-25 bps target; criticized loans down 4% QoQ.
- **Strategic Expansion**: 5 new Dallas branches to open in 2025-2026, targeting 10%+ banker hiring rate in 2026.

**【CEO Summary Section】**
- **ROA Improvement**: Achieved ROA of 1.46% for Q3 2025, up from 1.32% YoY, driven by profitability and efficiency ratio reduction.
- **Net Interest Income (NII) Growth**: NII increased $3 million (1%) due to higher earning assets and stable yields, despite deposit cost declines.
- **Fee Income Surge**: Fee income reached $106 million, up 8% QoQ, with record highs in investment, insurance, and annuity fees.
- **Loan Production Strength**: Loans grew $135 million (2% annualized), with production up 6% QoQ and 46% YoY, despite paydowns from SNCs and industrial projects.
- **Deposit Trends**: Deposits declined $387 million due to seasonal public fund activity, but interest-bearing transaction balances rose.
- **Capital Returns**: Repurchased 662,000 shares ($40 million) and maintained strong capital ratios (TCE 10.01%, CET1 14.08%).

**【CFO Financial Commentary】**
- **Net Income Performance**: Adjusted net income $128 million ($1.49 EPS), up 8% QoQ, with PPNR growth 5%.
- **Efficiency Ratio**: Improved to 54.1%, down 100 bps YoY, reflecting cost control (expenses up 1% QoQ).
- **Net Interest Margin (NIM)**: Stable at 3.49%, supported by higher loan yields and bond portfolio reinvestment at 4.61%.
- **Deposit Cost Management**: Cost of funds 1.64%, down 1 bps QoQ, with CD renewals at 88% and expected further declines post-rate cuts.
- **Credit Quality**: Net charge-offs 19 bps, within 15-25 bps full-year target; criticized loans down $20 million to $549 million.

**【Q&A Highlights】**
- **Loan Growth Challenges**: Paydowns (SNCs, industrial projects) offset strong production, targeting mid-single-digit growth with 2026 hiring acceleration.
- **Capital Deployment**: Buybacks ($40M/Q) to continue; CET1 target 11-11.5% while prioritizing organic growth.
- **M&A Strategy**: No active pursuit, remaining opportunistic.
- **Deposit Outlook**: Seasonal Q4 growth ($200-300M public funds), offsetting CD repricing ($1.7B at 3.89% maturing).
- **Credit Resilience**: No sector-specific weakness; loan reserves stable at 1.45%.
- **Dallas Expansion**: 5 new branches opening late 2025/early 2026, targeting mid-market business and fee income growth.

Hancock Whitney Corporation (HWC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

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Gain (Loss) on Change in Fair Value

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Net Interest Expense

Interest Expense

Interest Income

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Net Income

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Net Income Attributable to Owners of the Company

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Other Adjustments

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Total Comprehensive Income Attributable to Owners of the Company

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Diluted EPS

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HWC

HWC fundamentals

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