Hancock Whitney Corporation - 6 Q3 FY2025 earnings call

John Hairston noted the strong Q3 2025 results with ROA improvement, net interest income expansion, and progress on the organic growth plan. Mike Achary discussed adjusted net income, NIM stability, efficiency ratio improvement, loan and deposit yields, and capital ratios. Highlights include controlled expenses, progress on the organic growth plan with hiring and new branch openings in the Dallas market.

Net interest income continued to expand as average earning assets grew at higher yields and deposit costs were reduced by one basis point. Fee income totaled $106 million, an 8% increase from the prior quarter, with investment in insurance and annuity fees hitting a record high. Loans grew $135 million (2% annualized), but were impacted by higher payoffs of larger credits and lower line utilization among industrial contractors. Deposits were down $387 million due to seasonal activity. Earnings contributed to growth in all capital, with TCE at 10.01% and common equity Tier one ratio at 14.08%.

Expect low single-digit growth in 2025 and low single-digit net growth for the fourth quarter. Anticipate an increase in the hiring pace. Guidance includes two rate cuts in October and December, with expected impact on deposit costs and loan yields. Net charge-offs are expected to average between fifteen and twenty-five basis points for the full year 2025.

Q: Michael Rose asked about loan growth, paydowns, and 2026 growth.

A: John Hairston responded on loan production, paydown factors, and expectations for 2026 growth.

Q: Michael Rose followed up on capital and M&A.

A: Mike Achary discussed M&A stance, capital deployment, and share repurchases.

Q: Ben Gerlinger asked about branch expansion and forward guidance.

A: Mike Achary and John Hairston discussed annualized expenses for expansion and guidance details.

Q: Casey Haire asked about NII guide and private credit paydowns.

A: Mike Achary and John Hairston responded on NII guide and private credit impact.

Q: Catherine Mealor asked about deposit beta and variable rate loan yields.

A: Mike Achary and John Hairston provided insights on deposit beta and loan yield dynamics.

Q: Gary Tenner asked about deposit spot rate and non-accruals.

A: Mike Achary and Chris Ziluca responded on deposit rate and non-accrual mix.

Q: Matt Olney asked about criticized commercial loans and hiring opportunities.

A: Chris Ziluca and John Hairston discussed criticized loans and hiring plans.

Q: Brett Rabatin asked about deposit growth and Dallas operation.

A: Mike Achary and John Hairston provided details on deposit growth and Dallas expansion plans