Hancock Whitney's Q3 Net Income Jumps 10% on Strong Noninterest Gains

TL;DR

**Hancock Whitney's Q3 earnings beat expectations, but watch those shrinking deposits and rising short-term debt – a potential red flag for future liquidity.**

AI Summary

Hancock Whitney Corporation reported a robust financial performance for the three and nine months ended September 30, 2025. Net income for the three months increased by 10.3% to $127.466 million from $115.572 million in the prior year, while for the nine months, net income rose by 6.4% to $360.501 million from $338.741 million. Net interest income saw a 2.9% increase to $279.738 million for the three-month period and a 2.3% increase to $826.602 million for the nine-month period, despite a decrease in total interest income from loans. Total assets grew to $35.766 billion as of September 30, 2025, up from $35.081 billion at December 31, 2024. The company's allowance for loan losses decreased slightly to $313.636 million from $318.882 million, indicating improved credit quality or a change in portfolio risk assessment. Strategic outlook includes continued focus on noninterest income growth, with trust fees up 34.4% to $24.211 million for the quarter and investment and annuity fees up 33.2% to $14.507 million. Risks include a significant increase in short-term borrowings by $1.252 billion for the nine months ended September 30, 2025, and a decrease in total deposits by $833.101 million over the same period, suggesting a shift in funding strategy or deposit outflows.

Why It Matters

Hancock Whitney's solid Q3 performance, marked by a 10.3% rise in net income, signals resilience in a competitive banking landscape. For investors, the increased earnings per share to $1.50 and higher dividends paid per share at $0.45 demonstrate a commitment to shareholder returns. The growth in noninterest income, particularly trust fees and investment services, suggests successful diversification away from traditional lending, a crucial factor for sustained growth against larger regional banks. However, the notable decline in deposits and reliance on short-term borrowings could indicate funding pressures or a strategic shift that warrants close monitoring by the market and could impact future liquidity.

Risk Assessment

Risk Level: medium — The risk level is medium due to a significant decrease in total deposits by $833.101 million and a substantial increase in short-term borrowings by $1.252 billion for the nine months ended September 30, 2025, compared to the same period in 2024. This shift in funding structure could expose Hancock Whitney Corporation to higher interest rate risk and liquidity challenges if market conditions tighten further.

Analyst Insight

Investors should closely monitor Hancock Whitney's deposit trends and funding costs in upcoming quarters. While the noninterest income growth is positive, the reliance on short-term borrowings to offset deposit outflows could compress net interest margins if interest rates continue to rise. Consider holding, but be prepared to re-evaluate if deposit erosion accelerates.

Financial Highlights

revenue

$826.602M

total Assets

$35.766B

net Income

$360.501M

eps

$1.50

revenue Growth

+2.3%

Revenue Breakdown

Key Numbers

• $127.466M — Net Income (Q3 2025) (Increased by 10.3% from $115.572M in Q3 2024)
• $360.501M — Net Income (9 Months 2025) (Increased by 6.4% from $338.741M in 9 Months 2024)
• $279.738M — Net Interest Income (Q3 2025) (Increased by 2.9% from $271.764M in Q3 2024)
• $35.766B — Total Assets (Sept 30, 2025) (Increased from $35.081B at Dec 31, 2024)
• $313.636M — Allowance for Loan Losses (Sept 30, 2025) (Decreased from $318.882M at Dec 31, 2024)
• $24.211M — Trust Fees (Q3 2025) (Increased by 34.4% from $18.014M in Q3 2024)
• $1.252B — Increase in Short-term Borrowings (9 Months 2025) (Increased from $111.115M in 9 Months 2024)
• $833.101M — Decrease in Deposits (9 Months 2025) (Decreased from $707.154M in 9 Months 2024)
• $1.50 — Basic EPS (Q3 2025) (Increased from $1.33 in Q3 2024)
• $0.45 — Dividends Paid Per Share (Q3 2025) (Increased from $0.40 in Q3 2024)

Key Players & Entities

• HANCOCK WHITNEY CORPORATION (company) — Registrant and financial holding company
• Hancock Whitney Bank (company) — Wholly-owned subsidiary conducting banking operations
• Sabal Trust Company (company) — Entity acquired on May 2, 2025
• SEC (regulator) — U.S. Securities and Exchange Commission
• Nasdaq (regulator) — Exchange where common stock and subordinated notes are registered
• $127,466 (dollar_amount) — Net income for the three months ended September 30, 2025
• $360,501 (dollar_amount) — Net income for the nine months ended September 30, 2025
• $28,659,750 (dollar_amount) — Total deposits as of September 30, 2025
• $1,891,520 (dollar_amount) — Short-term borrowings as of September 30, 2025
• $0.45 (dollar_amount) — Dividends paid per common share for the three months ended September 30, 2025

FAQ

Risk Factors

• Increased Reliance on Short-Term Borrowings [high — financial]: Short-term borrowings increased by $1.252 billion for the nine months ended September 30, 2025. This shift in funding strategy may increase interest rate sensitivity and refinancing risk.
• Deposit Outflows [medium — financial]: Total deposits decreased by $833.101 million for the nine months ended September 30, 2025. This could indicate competitive pressures or a change in customer deposit behavior, potentially increasing funding costs.
• Interest Rate Sensitivity [medium — financial]: While net interest income grew, the decrease in total interest income from loans suggests potential margin compression in a rising rate environment or shifts in loan demand. The company's net interest margin could be impacted by the cost of increased short-term borrowings.
• Allowance for Loan Losses [low — financial]: The allowance for loan losses decreased slightly to $313.636 million from $318.882 million. While this suggests improved credit quality, it warrants monitoring for any signs of underestimation of future credit events.
• Economic Slowdown [medium — market]: A general economic downturn could lead to increased loan delinquencies and defaults, impacting asset quality and profitability. This is a persistent risk for all financial institutions.
• Regulatory Changes [medium — regulatory]: Changes in banking regulations, capital requirements, or monetary policy could affect the company's operations, profitability, and strategic flexibility.

Industry Context

Hancock Whitney operates in the highly competitive U.S. banking sector, characterized by consolidation and increasing digital transformation. Banks are facing pressure to grow non-interest income streams amidst evolving customer preferences and a dynamic interest rate environment. The industry is also navigating increased regulatory scrutiny and the need for robust risk management.

Regulatory Implications

The company must adhere to stringent banking regulations, including capital adequacy requirements (e.g., Basel III) and consumer protection laws. Changes in monetary policy by the Federal Reserve directly impact interest income and funding costs. Compliance with evolving cybersecurity and data privacy regulations is also critical.

What Investors Should Do

1. Monitor funding mix and cost of funds.
2. Assess the sustainability of noninterest income growth.
3. Evaluate credit quality trends.

Key Dates

• 2025-09-30: End of Third Quarter and Nine-Month Period — Reporting period for the financial results discussed in the 10-Q, showing net income growth and asset increase.
• 2024-12-31: End of Previous Fiscal Year — Baseline for comparison of total assets ($35.081B) and allowance for loan losses ($318.882M).

Glossary

Net Interest Income

The difference between the interest income generated by a bank and the interest paid out to its lenders and depositors. (A core measure of a bank's profitability from its lending and borrowing activities. Increased by 2.9% for Q3 2025.)

Allowance for Loan Losses

A reserve set aside by a financial institution to cover potential losses from loans that may become uncollectible. (A decrease suggests improved credit quality or a change in risk assessment. It stood at $313.636 million as of Sept 30, 2025.)

Short-term Borrowings

Funds borrowed by a company that are expected to be repaid within one year. (A significant increase of $1.252 billion for the nine months ended Sept 30, 2025, indicates a potential shift in funding strategy or liquidity management.)

Noninterest Income

Revenue generated by a financial institution from sources other than net interest income, such as fees and commissions. (The company is focusing on growing this segment, with trust fees up 34.4% and investment/annuity fees up 33.2% in Q3 2025.)

Basic Earnings Per Share (EPS)

The portion of a company's profit allocated to each outstanding share of common stock. (Increased to $1.50 for Q3 2025 from $1.33 in Q3 2024, reflecting improved profitability on a per-share basis.)

Year-Over-Year Comparison

Hancock Whitney Corporation demonstrates positive momentum with a 10.3% increase in net income for Q3 2025 compared to the prior year, reaching $127.466 million. Total assets grew to $35.766 billion. However, the company is managing a shift in its funding structure, evidenced by a substantial $1.252 billion increase in short-term borrowings and an $833.101 million decrease in deposits over nine months, suggesting potential liquidity management challenges or strategic funding adjustments.

Key Financial Figures

• $3.33 — ch registered Common stock, par value $3.33 per share HWC Nasdaq 6.25% Subord
• $250,000 — s excluding certificates of deposits of $250,000 or more and brokered deposits CRE – c

Filing Documents

• hwc-20250930.htm (10-Q) — 9038KB
• hwc-ex31_1.htm (EX-31.1) — 19KB
• hwc-ex31_2.htm (EX-31.2) — 19KB
• hwc-ex32_1.htm (EX-32.1) — 12KB
• hwc-ex32_2.htm (EX-32.2) — 13KB
• 0001193125-25-265159.txt ( ) — 32739KB
• hwc-20250930.xsd (EX-101.SCH) — 2319KB
• hwc-20250930_htm.xml (XML) — 9111KB

Financial Information

Part I. Financial Information Page Number ITEM 1.

Financial Statements

Financial Statements 5 Consolidated Balance Sheets (unaudited) – September 30, 2025 and December 31, 2024 5 Consolidated Statements of Income (unaudited) – Three and Nine Months Ended September 30, 2025 and 202 4 6 Consolidated Statements of Comprehensive Income (unaudited) – Three and Nine Months Ended September 30, 2025 and 2024 7 Consolidated Statements of Changes in Stockholders' Equity (unaudited) – Three and Nine Months Ended September 30, 2025 and 2024 8 Consolidated Statements of Cash Flows (unaudited) – Nine Months Ended September 30, 2025 and 2024 9

Notes to Consolidated Financial Statements (unaudited) – September 30, 2025 and 2024

Notes to Consolidated Financial Statements (unaudited) – September 30, 2025 and 2024 10 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 65 ITEM 4.

Controls and Procedures

Controls and Procedures 67

Other Information

Part II. Other Information ITEM 1.

Legal Proceedings

Legal Proceedings 68 ITEM 1A.

Risk Factors

Risk Factors 68 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 68 ITEM 3. Default on Senior Securities N/A ITEM 4. Mine Safety Disclosures N/A ITEM 5. Other Information 68 ITEM 6. Exhibits 69

Signatures

Signatures 70 2 Table of Contents Hancock Whitney Corporation Glossary of Defined Terms Entities: Hancock Whitney Corporation – a financial holding company registered with the Securities and Exchange Commission Hancock Whitney Bank – a wholly-owned subsidiary of Hancock Whitney Corporation through which Hancock Whitney Corporation conducts its banking operations Company – Hancock Whitney Corporation and its consolidated subsidiaries Parent – Hancock Whitney Corporation, exclusive of its subsidiaries Bank – Hancock Whitney Bank Other Terms: ACL – allowance for credit losses AFS – available for sale securities AI – Artificial Intelligence ALCO – Asset Liability Management Committee ALLL – allowance for loan and lease losses AOCI – accumulated other comprehensive income or loss ASC – Accounting Standards Codification ASU – Accounting Standards Update ATM – automated teller machine Basel III – Basel Committee's 2010 Regulatory Capital Framework (Third Accord) Beta – amount by which deposit or loan costs change in response to movement in short-term interest rates BOLI – bank-owned life insurance bp(s) – basis point(s) C&I – commercial and industrial loans CD – certificate of deposit CDE – Community Development Entity CECL – Current Expected Credit Losses CEO – Chief Executive Officer CFPB – Consumer Financial Protection Bureau CFO – Chief Financial Officer CISO – Chief Information Security Officer CME – Chicago Mercantile Exchange CMO – collateralized mortgage obligation Core client deposits – total deposits excluding public funds and brokered deposits Core deposits – total deposits excluding certificates of deposits of $250,000 or more and brokered deposits CRE – commercial real estate CET1 – Common equity tier 1 capital as defined by Basel III capital rules DIF – Deposit Insurance Fund EVE – Economic Value of Equity Excess Liquidity – deposits held at the Federal Reserve above normal le

Financi al Information

Part I. Financi al Information

Financ ial Statements

Item 1. Financ ial Statements Hancock Whitney Corporation and Subsidiaries Consolidate d Balance Sheets (Unaudited) September 30, December 31, (in thousands, except per share data) 2025 2024 ASSETS Cash and due from banks $ 514,582 $ 574,910 Interest-bearing bank deposits 911,068 939,306 Federal funds sold 246 409 Securities available for sale, at fair value (amortized cost of $ 6,203,454 and $ 5,774,133 ) 5,793,670 5,161,491 Securities held to maturity (fair value of $ 2,064,591 and $ 2,233,526 ) 2,197,611 2,435,663 Loans held for sale (includes $ 33,161 and $ 18,929 measured at fair value) 33,161 21,525 Loans 23,596,565 23,299,447 Less: allowance for loan losses ( 313,636 ) ( 318,882 ) Loans, net 23,282,929 22,980,565 Property and equipment, net of accumulated depreciation of $ 365,542 and $ 345,962 260,315 279,767 Right of use assets, net of accumulated amortization of $ 71,153 and $ 67,063 103,688 98,822 Prepaid expenses 58,921 45,763 Other real estate and foreclosed assets, net 11,140 27,797 Accrued interest receivable 142,025 143,237 Goodwill 925,404 855,453 Other intangible assets, net 69,692 35,224 Life insurance contracts 785,818 774,542 Funded pension assets, net 270,795 260,003 Deferred tax asset, net 74,604 146,567 Other assets 330,738 300,741 Total assets $ 35,766,407 $ 35,081,785 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits Noninterest-bearing $ 10,305,303 $ 10,597,461 Interest-bearing 18,354,447 18,895,390 Total deposits 28,659,750 29,492,851 Short-term borrowings 1,891,520 639,015 Long-term debt 210,657 210,544 Accrued interest payable 17,245 20,148 Lease liabilities 122,803 117,817 Other liabilities 389,953 473,774 Total liabilities 31,291,928 30,954,149 Stockholders' equity: Common stock 309,513 309,513 Capit

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