Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the second quarter of 2025. Net income for the second quarter of 2025 totaled $113.5 million, or $1.32 per diluted common share (EPS), compared to $119.5 million, or $1.38 per diluted common share, in the first quarter of 2025. The second quarter of 2025 included $5.9 million, or $0.05 per share of supplemental disclosure items related to the acquisition of Sabal Trust Company. Excluding the impact of these supplemental disclosure items, EPS would be $1.37, down $0.01 linked-quarter. There were no supplemental disclosure items in the first quarter of 2025. The company reported net income for the second quarter of 2024 of $114.6 million, or $1.31 per diluted common share. There were no supplemental disclosure items in the second quarter of 2024.

Second Quarter 2025 Highlights

• Net income totaled $113.5 million, or $1.32 per diluted share, compared to $119.5 million, or $1.38 per diluted share in the first quarter of 2025
• Return on Assets (ROA) was 1.32%, or 1.37% when adjusted for supplemental disclosure items, compared to 1.41% in prior quarter
• Adjusted pre-provision net revenue (PPNR) totaled $167.9 million, up $5.5 million compared to the first quarter of 2025
• Loans increased $363.6 million, or 6% linked quarter annualized (LQA)
• Deposits decreased $148.1 million, or 2% LQA
• Criticized commercial loans and nonaccrual loans decreased
• ACL coverage solid at 1.45%, compared to 1.49% in prior quarter
• NIM 3.49%, up 6 bps compared to the prior quarter
• CET1 ratio estimated at 14.03%, down 45 bps linked-quarter; TCE ratio of 9.84%, down 17 bps linked-quarter; total risk-based capital ratio estimated at 15.87%, down 50 bps linked-quarter
• Efficiency ratio of 54.91%, improved 31 bps compared to prior quarter

“We are pleased to share another strong report for the second quarter of 2025,” said John M. Hairston, President & CEO. “Our team delivered another quarter of solid profitability and progress on our growth plan for 2025. Adjusted ROA was 1.37%, NIM continued to expand, and our efficiency ratio improved to 54.91%. We welcomed new colleagues and clients via the Sabal Trust Company acquisition on May 2^nd. Capital was proactively deployed to fund both organic and inorganic growth, while simultaneously repurchasing 750,000 shares of our common stock. The pivot to loan growth began with a 6.3% LQA improvement across the footprint and in nearly every business segment. We look forward to the rest of 2025 as we execute our organic growth plan and maintain focus on profitability and efficiency.”

Loans

Total loans were $23.5 billion at June 30, 2025, up $363.6 million, or 2%, from March 31, 2025. Loan growth occurred across most commercial segments due to stronger loan demand, increasing line utilization, and lower payoffs.

Average loans totaled $23.2 billion for the second quarter of 2025, up $180.7 million, or 1%, linked-quarter. In 2025, we expect low-single digit loan growth from December 31, 2024 levels.

Deposits

Total deposits at June 30, 2025 were $29.0 billion, down $148.1 million, or 1%, from March 31, 2025. The linked-quarter decrease in deposits was primarily due to a decrease in retail time deposits driven by maturity concentration and promotional rate reductions during the second quarter of 2025 and a decrease in interest-bearing public funds driven by seasonal outflows. These decreases were partially offset by an increase in interest-bearing transactions and savings due to seasonality and competitive products and pricing and an increase in noninterest-bearing deposits.

DDAs totaled $10.6 billion at June 30, 2025, up $23.9 million, or less than 1%, from March 31, 2025 and comprised 37% of total period-end deposits. Interest-bearing transaction and savings deposits totaled $11.5 billion at the end of the second quarter of 2025, up $80.7 million, or 1%, linked-quarter. Compared to March 31, 2025, retail time deposits of $3.9 billion were down $234.4 million, or 6%. Interest-bearing public fund deposits decreased $18.3 billion, or 1%, linked-quarter, totaling $3.0 billion at June 30, 2025.

Average deposits for the second quarter of 2025 were $28.6 billion, down $102.5 million, or less than 1%, linked-quarter. Management expects 2025 period-end deposit levels to be up low-single digits from December 31, 2024 levels.

Asset Quality

The total allowance for credit losses (ACL) was $340.3 million at June 30, 2025, down $2.9 million, or 1%, from March 31, 2025. During the second quarter of 2025, the company recorded a provision for credit losses of $14.9 million, compared to $10.5 million in the first quarter of 2025. There were $17.8 million of net charge-offs in the second quarter of 2025, or 0.31% of average total loans on an annualized basis, compared to net charge-offs of $10.3 million, or 0.18% of average total loans in the first quarter of 2025. The ratio of ACL to period-end loans was 1.45% at June 30, 2025, compared to 1.49% at March 31, 2025.

Criticized commercial loans totaled $569.3 million, or 3.15% of total commercial loans, at June 30, 2025, compared to $594.1 million, or 3.35% of total commercial loans at March 31, 2025. Nonaccrual loans totaled $94.9 million, or 0.40% of total loans, at June 30, 2025, compared to $104.2 million, or 0.45% of total loans, at March 31, 2025. ORE and foreclosed assets were $26.8 million at June 30, 2025, up $0.2 million, or 1%, compared to March 31, 2025.

Net Interest Income and Net Interest Margin (NIM)

Net interest income (TE) for the second quarter of 2025 was $279.5 million, an increase of $6.7 million, or 2%, from the first quarter of 2025. The net interest margin (NIM) (TE) was 3.49% in the second quarter of 2025, up 6 bps linked-quarter. Change in rates on deposits (+4 bps), higher securities yields (+2 bps), higher loan yields (+2 bps) led to an 8 basis point improvement in NIM, partially offset by unfavorable borrowing mix and rates (-2 bps).

Average earning assets were $32.1 billion for the second quarter of 2025, up $57.3 million, or less than 1%, from the first quarter of 2025.

Noninterest Income

Noninterest income totaled $98.5 million for the second quarter of 2025, up $3.7 million, or 4%, from the first quarter of 2025.

Service charges on deposits were up $0.1 million, or 1%, from the first quarter of 2025. Bank card and ATM fees were up $1.3 million, or 6%, from the first quarter of 2025 due to higher activity on client accounts.

Investment and annuity income and insurance fees were down $0.8 million, or 7%, linked-quarter. Trust fees were up $4.7 million, or 26% linked-quarter, including $3.6 million from Sabal Trust Company, which was acquired on May 2, 2025. Fees from secondary mortgage operations totaled $4.1 million for the second quarter of 2025, up $0.7 million, or 20%, linked-quarter.

Other noninterest income was $14.8 million in the second quarter of 2025, down $2.3 million, or 13%, from the first quarter of 2025, primarily due to lower SBIC income, syndication fees, and SBA loan fees, partially offset by higher income from derivatives and BOLI.

Noninterest Expense & Taxes

Noninterest expense totaled $216.0 million, up $10.9 million, or 5% linked-quarter. The second quarter of 2025 included $5.9 million of supplemental disclosure items related to one-time expenses incurred due to the acquisition of Sabal Trust Company. There were no supplemental disclosure items in the first quarter of 2025.

Personnel expense totaled $116.5 million in the second quarter of 2025, up $2.2 million, or 2%, linked-quarter. This increase was primarily due to $1.4 million of one-time expenses included in the supplemental disclosure items related to the acquisition of Sabal Trust Company.

Net occupancy and equipment expense totaled $18.4 million in the second quarter of 2025, up $0.7 million, or 4%, from the first quarter of 2025. Amortization of intangibles totaled $2.5 million for the second quarter of 2025, up $0.4 million, or 19%, linked-quarter.

ORE and other foreclosed assets expense totaled $1.2 million in the second quarter of 2025, compared to $1.8 million in the first quarter of 2025.

Other expenses totaled $77.4 million in the second quarter of 2025, up $8.2 million, or 12%, linked-quarter, primarily due to higher professional services expense and $4.5 million of one-time expenses included in the supplemental disclosure items related to the acquisition of Sabal Trust Company.

The effective income tax rate for the second quarter of 2025 was 21.5%.

Capital

Common stockholders’ equity at June 30, 2025 totaled $4.4 billion, up $86.7 million, or 2%, from March 31, 2025. The tangible common equity (TCE) ratio was 9.84%, down 17 bps linked-quarter. The company’s CET1 ratio is estimated to be 14.03% at June 30, 2025, down 45 bps linked-quarter. Total risk-based capital ratio is estimated to be 15.87% at June 30, 2025, down 50 bps linked-quarter. During the second quarter of 2025, the company repurchased 750,000 shares of its common stock at an average price of $52.36 per share. This stock repurchase is pursuant to the company’s share buyback program (which authorized the repurchase of up to 4,306,000 shares of the company’s outstanding common stock), which expires on December 31, 2026. Since its inception, the company has repurchased 1,100,000 shares under this share buyback program.

Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 3:30 p.m. Central Time on Tuesday, July 15, 2025 to review second quarter of 2025 results. A live listen-only webcast of the call will be available under the Investor Relations section of Hancock Whitney’s website at investors.hancockwhitney.com. A link to the release with additional financial tables, and a link to a slide presentation related to second quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial 800-715-9871 or 646-307-1963, access code 6506941.

An audio archive of the conference call will be available under the Investor Relations section of our website. A replay of the call will also be available through July 24, 2025 by dialing 800-770-2030 or 609-800-9909, access code 6506941.

About Hancock Whitney

Since the late 1800s, Hancock Whitney has embodied core values of Honor & Integrity, Strength & Stability, Commitment to Service, Teamwork, and Personal Responsibility. Hancock Whitney offices and financial centers in Mississippi, Alabama, Florida, Louisiana, and Texas offer comprehensive financial products and services, including traditional and online banking; commercial and small business banking; private banking; trust and investment services; healthcare banking; and mortgage services. The company also operates combined loan and deposit production offices in the greater metropolitan areas of Nashville, Tennessee, and Atlanta, Georgia. More information is available at www.hancockwhitney.com.

Non-GAAP Financial Measures

This news release includes non-GAAP financial measures to describe Hancock Whitney’s performance. These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. The reconciliations of those measures to GAAP measures are provided either in the financial tables or in Appendix A thereto.

Consistent with the provisions of subpart 229.1400 of the Securities and Exchange Commission’s Regulation S-K, “Disclosures by Bank and Savings and Loan Registrants,” the company presents net interest income, net interest margin and efficiency ratios on a fully taxable equivalent (“TE”) basis. The TE basis adjusts for the tax-favored status of net interest income from certain loans and investments using the statutory federal tax rate to increase tax-exempt interest income to a taxable equivalent basis. The company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

The company presents certain additional non-GAAP financial measures to assist the reader with a better understanding of the company’s performance period over period, as well as to provide investors with assistance in understanding the success management has experienced in executing its strategic initiatives. The company highlights certain items that are outside of our principal business and/or are not indicative of forward-looking trends in supplemental disclosures items below our GAAP financial data and presents certain “Adjusted” ratios that exclude these disclosed items. These adjusted ratios provide management or the reader with a measure that may be more indicative of forward-looking trends in our business, as well as demonstrates the effects of significant gains or losses and changes.

We define Adjusted Pre-Provision Net Revenue as net income excluding provision expense and income tax expense, plus the taxable equivalent adjustment (as defined above), less supplemental disclosure items (as defined above). Management believes that adjusted pre-provision net revenue is a useful financial measure because it enables investors and others to assess the company’s ability to generate capital to cover credit losses through a credit cycle. We define Adjusted Revenue as net interest income (te) and noninterest income less supplemental disclosure items. We define Adjusted Noninterest Expense as noninterest expense less supplemental disclosure items. We define our Efficiency Ratio as noninterest expense to total net interest income (te) and noninterest income, excluding amortization of purchased intangibles and supplemental disclosure items, if applicable. Management believes adjusted revenue, adjusted noninterest expense and the efficiency ratio are useful measures as they provide a greater understanding of ongoing operations and enhance comparability with prior periods.

Important Cautionary Statement about Forward-Looking Statements

This release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements that we may make include statements regarding our expectations of our performance and financial condition, balance sheet and revenue growth, the provision for credit losses, capital levels, deposits (including growth, pricing, and betas), investment portfolio, other sources of liquidity, loan growth expectations, management’s predictions about charge-offs for loans, the impact of current and future economic conditions, including the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment, inflationary pressures, increasing insurance costs, elevated interest rates, including the impact of changes in interest rates on our financial projections, models and guidance and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing, general economic business conditions in our local markets, Federal Reserve action with respect to interest rates, the effects of war or other conflicts, acts of terrorism, climate change, the impact of natural or man-made disasters, the adequacy of our enterprise risk management framework, potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings, assessments, and enforcement actions, as well as the impact of negative developments affecting the banking industry and the resulting media coverage; the potential impact of current (including Sabal Trust Company) or future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, success of revenue-generating and cost reduction initiatives, the effectiveness of derivative financial instruments and hedging activities to manage risks, projected tax rates, increased cybersecurity risks, including potential business disruptions or financial losses, the adequacy of our internal controls over financial and non-financial reporting, the financial impact of regulatory requirements and tax reform legislation, deposit trends, credit quality trends, net interest margin trends, future expense levels, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts and expected returns. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “forecast,” “goals,” “targets,” “initiatives,” “focus,” “potentially,” “probably,” “projects,” “outlook," or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events.

Forward-looking statements are subject to significant risks and uncertainties. Any forward-looking statement made in this release is subject to the safe harbor protections set forth in the Private Securities Litigation Reform Act of 1995. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, and in other periodic reports that we file with the SEC.

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