HWC Q2 Earnings Beat Estimates on NII & Fee Income Growth, Stock Down

Hancock Whitney Corp.’s HWC second-quarter 2025 adjusted earnings per share of $1.37 exceeded the Zacks Consensus Estimate of $1.34. Further, the bottom line rose 4.6% from the prior year quarter.
 
Results benefited from an increase in non-interest income and net interest income (NII). Also, higher loans were another positive. However, higher adjusted expenses and provisions alongside lower deposit balances were headwinds. Given these negatives, the company’s shares declined 3.2% in Tuesday’s after-market session.

The results excluded certain notable items. Excluding those items, net income was $113.5 million, down approximately 1% from the prior-year quarter. Our estimate for the metric was $113.2 million.

HWC’s Revenues & Adjusted Expenses Rise

Quarterly total revenues amounted to $375.5 million, up 4.4% year over year. The top line surpassed the Zacks Consensus Estimate of $371.3 million.

NII (on a tax-equivalent basis) increased 2.3% year over year to $279.5 million. The net interest margin (NIM) was 3.49%, which expanded 12 basis points (bps). Our estimates for NII and NIM were pegged at $278.1 million and 3.53%, respectively.

Non-interest income totaled $98.5 million, up 10.5%. The rise was driven by an increase in almost all components. We had projected non-interest income of $93 million.

Total non-interest expenses (GAAP) increased 4.8% to $216 million. We had projected expenses of $213.8 million. Adjusted expenses rose 2%.
 
The efficiency ratio decreased to 54.91% from 56.18% in the year-ago quarter. A decline in the efficiency ratio indicates an increase in profitability.

As of June 30, 2025, total loans were $23.5 billion, up 1.6% from the prior quarter. However, total deposits declined marginally on a sequential basis to $29 billion. Our estimates for total loans and deposits were pegged at $23.3 billion and $29.3 billion, respectively.

HWC’s Credit Quality Deteriorates

The provision for credit losses was $14.9 million, up 71.1% from the prior-year quarter. Our estimate for provisions was $14.2 million.

Net charge-offs (annualized) were 0.31% of average total loans, up 19 bps from the prior-year quarter.

HWC’s Capital Ratios Improve, Profitability Ratios Mixed

As of June 30, 2025, the Tier 1 leverage ratio was 11.39%, up from 10.71% at the end of the year-ago quarter. The common equity Tier 1 ratio was 14.03%, up from 13.25% as of June 30, 2024.

At the end of the second quarter of 2025, the return on average assets was 1.32%, stable compared with the year-ago period. The return on average common equity was 10.63%, down from 12.04% in the prior-year quarter.

HWC’s Share Repurchase Update

In the reported quarter, HWC repurchased 0.75 million shares at an average price of $52.36 per share.

Our View on Hancock Whitney

Hancock Whitney’s strategic expansion initiatives will likely keep supporting top-line growth. In May, it completed the acquisition of Sabal Trust Company. Further, bond restructuring efforts and relatively higher rates are expected to support NII and NIM expansion. However, weak asset quality, higher expenses and subdued mortgage income are woes.

Hancock Whitney Corporation Price, Consensus and EPS Surprise

Hancock Whitney Corporation price-consensus-eps-surprise-chart | Hancock Whitney Corporation Quote

Currently, Hancock Whitney carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Release Dates of Other Banks

WaFd, Inc. WAFD is slated to report third-quarter fiscal 2025 (ended June 30) results on July 17.
 
Over the past seven days, the Zacks Consensus Estimate for WAFD’s quarterly earnings has remained unchanged at 67 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Huntington Bancshares Inc. HBAN is slated to report second-quarter 2025 results on July 18.
 
Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been revised 2.9% downward to 34 cents per share.

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This article originally published on Zacks Investment Research (zacks.com).

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