Hancock Whitney (HWC) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2025 was $119.5 million, or$ 1.38 per diluted share, compared to $122.1 million, or$ 1.40 per diluted share in Q4 2024[1] - Net income for the three months ended March 31, 2025, was $119,504,000, compared to$ 122,074,000 for the previous quarter, reflecting a decrease of 1.3%[31] - Earnings per share (diluted) for the quarter was $1.38, compared to$ 1.40 in the previous quarter, a decline of 1.4%[31] - Pre-provision net revenue was reported at $159.6 million, a decrease from$ 162.4 million in the previous quarter, indicating a slight decline in profitability[50] - Total revenue (TE) for the quarter was $367.5 million, consistent with$ 367.5 million in the previous quarter, showing stable revenue generation[51] Asset and Loan Management - Total loans decreased by $201.3 million, or 1%, to$ 23.1 billion, driven by increased payoffs in large healthcare and commercial non-real estate credits[5] - Loans outstanding as of March 31, 2025, were $23,098,146,000, down from$ 23,299,447,000, a decrease of 0.9%[31] - Total loans decreased to $23,098,146,000 from$ 23,299,447,000, representing a decline of 0.86%[38] - Total average loans decreased slightly to $23.07 billion from$ 23.25 billion in the previous quarter, indicating a contraction in loan volume[47] Deposit Trends - Total deposits were $29.2 billion, down$ 298.1 million, or 1%, primarily due to a decrease in retail time deposits[6] - Total deposits decreased to $29,194,733,000 from$ 29,492,851,000, representing a decline of 1.0%[31] - Total deposits decreased to $28,752,416, down 1.22% from$ 29,108,381 in the previous quarter[40] Credit Quality and Allowance for Losses - The allowance for credit losses (ACL) was $343.2 million, with a coverage ratio of 1.49% of period-end loans, up from 1.47% at the end of Q4 2024[9] - The provision for credit losses was$ 10,462,000, down from $11,912,000, a decrease of 12.1%[31] - The provision for credit losses was$ 10.5 million, down from $11.9 million in the previous quarter, suggesting a more favorable outlook on credit risk[50] - Nonaccrual loans increased to$ 104.2 million as of March 31, 2025, up from $97.3 million at December 31, 2024, representing a 4.5% increase[47] - Net charge-offs for the quarter were$ 10.2 million, a decrease from $11.7 million in the prior quarter, reflecting improved credit quality[47] Capital and Equity - Common stockholders' equity increased to$ 4.3 billion, up $151.0 million, or 4%, from December 31, 2024[19] - The CET1 ratio was estimated at 14.51%, up 37 basis points linked-quarter, while the total risk-based capital ratio was 16.39%[19] - Common equity tier 1 (CET1) ratio improved to 14.51% from 14.14% in the previous quarter, indicating stronger capital position[38] - The tangible common equity ratio increased to 10.01% from 9.47%, reflecting a stronger capital position[31] Noninterest Income and Expenses - Noninterest income totaled$ 94.8 million, an increase of $3.6 million, or 4%, from the previous quarter[13] - Noninterest income increased to$ 94,791,000 from $91,209,000, marking a growth of 4.3%[31] - Total noninterest expense was$ 205,059,000, slightly up from $202,333,000 in the prior quarter, an increase of 0.85%[36] - Noninterest expense was$ 205.1 million, up $2.7 million, or 1%, linked-quarter[15] Efficiency and Profitability Ratios - Return on assets (ROA) was 1.41%, and net interest margin (NIM) increased to 3.43%, up 2 basis points from the prior quarter[3] - The efficiency ratio improved to 55.22% from 54.46%, indicating better cost management[31] - The efficiency ratio improved to 55.22%, compared to 54.46% in the prior quarter, indicating better cost management[51] Shareholder Actions - The company repurchased 350,000 shares at an average price of$ 59.25 per share as part of its share buyback program[19]