Hancock Whitney Corporation · NASDAQ:HWC
Hancock Whitney — Q1 2025 Earnings Presentation
38 slides from Hancock Whitney's earnings presentation, Apr 15, 2025
Slide 1: First Quarter 2025 Earnings Conference Call
First Quarter 2025 Earnings Conference Call 4/15/2025 HANCOCK WHITNEY
Slide 2: Important cautionary statement about forward-looking statements
Important cautionary statement about forward-looking statements This presentation 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 ma
Slide 3: Non-GAAP Reconciliations & Glossary of Terms
Non-GAAP Reconciliations & Glossary of Terms Throughout this presentation we may use non-GAAP numbers to supplement the evaluation of our performance. The items noted below with an asterisk, "*", are considered non-GAAP. These non-GAAP financial measures should not be considered alternatives to GAAP
Slide 4: Corporate Profile
Corporate Profile $34.8 billion in Total Assets (Healthcare) $23.1 billion in Total Loans (ABL) (Trust) (Operations) $29.2 billion in Total Deposits CET1 Ratio 14.51%* TCE Ratio 10.01% $4.5 billion in Market Cap Baa3 180 222 Moody’s banking locations ATMs Long-term issuer rating; positive outlook BB
Slide 5: How we do business
How we do business Our Mission. Our Purpose. Our Promise to Associates. Each day, we reaffirm our We work hard to create We honor and respect mission to help people achieve opportunities for people and associates with a heartfelt their financial goals and the communities we serve, our promise: You c
Slide 6: HWC Strong and Stable for 125 Years
HWC Strong and Stable for 125 Years ► Strength to manage through challenging economic environments ► Density in resilient deposit markets ► Stable, seasoned, diversified deposits; ability to organically grow deposits ► Top quartile capital levels including all unrealized losses ► Ability to return c
Slide 7: Acquisition of Sabal Trust Company
Acquisition of Sabal Trust Company ► All-cash strategic acquisition expected to close on May 2, 2025 ► Strategic overlay to 2018’s acquisition of Capital One’s trust and asset management business ► Florida becomes the largest private wealth management fee income contributor in the bank, with Tampa a
Slide 8: Year One of Multi-Year Organic Growth Plan
Year One of Multi-Year Organic Growth Plan Revenue Producers Facility Expansion ► Plan initiated in 2024 to hire additional wholesale, business, and ► Five additional financial center locations are planned for Dallas MSA wealth management revenue producers in 2025 ► Largely in higher-growth MSAs in
Slide 9: First Quarter 2025 Highlights
First Quarter 2025 Highlights ► Net income totaled $119.5 million, or $1.38 per diluted ($s in millions; except per share data) 1Q25 4Q24 1Q24 share, compared to $122.1 million, or $1.40 per diluted share in 4Q24 Net income $119.5 $122.1 $108.6 ► Pre-Provision Net Revenue (PPNR)* totaled $162.4 Prov
Slide 10: Payoffs Drive Decrease in Loans
Payoffs Drive Decrease in Loans ► Loans totaled $23.1 billion, down $201 Line Utilization million, or 3% LQA 45.0% – Contraction primarily driven by softer demand and an increase in payoffs of large healthcare and 41.6% 41.7% 41.3% 41.1% 41.5% 40.9% commercial non-real estate credits 40.4% 40.5% – I
Slide 11: Loan Portfolio Composition Diversified and De-Risked
Loan Portfolio Composition Diversified and De-Risked ► Loan portfolio diverse across a number of Total Loans % of Total ($s in millions) Outstanding Loans Commitment segments and industries Commercial non-RE (C&I) $7,376 31.9% $13,023 ► Conservative underwriting in both type and CRE – owner 2,437 10
Slide 12: Deposits Driven by Seasonal Public Funds Outflows
Deposits Driven by Seasonal Public Funds Outflows ► Total deposits of $29.2 billion, down $298 million, or 4% LQA EOP Deposits Mix ($) – Noninterest-bearing DDA increased $18 million; DDAs as a % of 35,000 total deposits stable in 1Q25 at 36% 30,000 25,000 – Increase in interest-bearing transactions
Slide 13: Asset Quality Metrics
Asset Quality Metrics $700 3.47% $600 3.35% 2.81% $500 $400 2.05% 1.83% $300 $200 0.42% 0.45% $100 0.34% 0.36% 0.35% $0 1Q24 2Q24 3Q24 4Q24 1Q25 Total Loans $23,971 $23,912 $23,456 $23,299 $23,098 Total Commercial Loans 18,591 18,524 18,097 17,968 17,735 Criticized Commercial Loans 340 380 508 623 5
Slide 14: Maintained Solid Reserves
Maintained Solid Reserves ► Provision for the first quarter of 2025 of $10.5 million, Reserve Build / reflects $10.3 million of net charge-offs and a reserve Net Charge-offs (Release) Total Provision build of $0.2 million ($s in millions) 1Q25 4Q24 1Q25 4Q24 1Q25 4Q24 – Increase in reserve coverage,
Slide 15: Portfolio Reinvestment Drives Yield Increase
Portfolio Reinvestment Drives Yield Increase ► Securities portfolio* totaled $8.2 billion at 3/31/25, flat linked-quarter Securities Portfolio* Mix ► 71% AFS, 29% HTM at 3/31/25 3/31/2025 $s in millions ► $478 million in notional FV hedges are designated Munis $783 on $514 million in bonds, or 9% of
Slide 16: Continued NIM Expansion Linked-Quarter
Continued NIM Expansion Linked-Quarter ► 1Q25 NIM 3.43%, up 2 bps from 4Q24 – NIM 3.45% for the month of March 2025 3.50% 0.13% 3.40% ► NII (TE) of $272.7 million, compared to $276.3 million 0.02% 0.01% 3.30% prior quarter 3.20% 0.14% − Decrease in NII primarily driven by two fewer accrual days in 3
Slide 17: Key IRR Metrics
Key IRR Metrics Loans ► Loans totaled $23.1 billion at March 31, 2025 – 41% fixed, 59% variable (includes hybrid ARMs) – 72% of variable loans tied to SOFR – 23% of variable loans tied to Wall Street Journal Prime – 5% of variable loans tied to other indices ► Approximately 4% ($473MM) of the variab
Slide 18: Fee Income Growth Across Most Categories
Fee Income Growth Across Most Categories $120 $2.3 $100 $0.7 $0.5 $0.9 $0.7 $0.1 $80 $s in millions $60 $91.2 $94.8 $40 $20 $0 4Q24 Noninterest Service charges Bank card & Investment & Trust fees Secondary Other 1Q25 Noninterest Income on deposit accounts ATM fees annuity income mortgage Income and
Slide 19: Expenses Remain Well-Controlled
Expenses Remain Well-Controlled $225 $0.2 $0.1 $0.1 $200 $0.6 $2.6 $s in millions $175 $202.3 $205.1 $150 $125 $100 4Q24 Noninterest Personnel Occupancy and Amortization of ORE/OFA Other (net) 1Q25 Noninterest Expense expense Equipment intangibles expenses Expense Noninterest Expense Mix 3/31/25 ► N
Slide 20: Capital Levels Continue to Build
Capital Levels Continue to Build ► CET1 ratio estimated at 14.51%, up 37 bps linked-quarter CET1 Ratio and Tangible Tier 1 Risked- Total ► Leverage (Tier 1) ratio estimated at 11.55%, up 26 bps Common Equity Leverage Based Capital Risk-Based Ratio Ratio Ratio Capital Ratio linked-quarter March 31, 2
Slide 21: 2025 Forward Guidance
2025 Forward Guidance Guidance 1Q25 FY 2025 Direction Actual Outlook (Includes impact of the acquisition of Sabal Trust Company as of 5/2/2025) Loans (EOP) Updated $23.1B Expect EOP loans at 12/31/25 to be up low single digits from 12/31/24 levels Deposits (EOP) No change $29.2B Expect EOP deposits
Slide 22: Appendix and Non-GAAP Reconciliations
Appendix and Non-GAAP Reconciliations Appendix and Non-GAAP Reconciliations CHANCOCK WHITNEY
Slide 23: Summary Balance Sheet
Summary Balance Sheet ($ in millions) Change 1Q25 4Q24 1Q24 LQ Prior Year EOP Balance Sheet Loans 23,098.1 23,299.4 23,970.9 (201.3) (872.8) Securities 7,695.0 7,597.2 7,559.2 97.8 135.8 Earning assets 31,661.2 31,857.8 31,985.6 (196.6) (324.4) Total assets 34,750.7 35,081.8 35,247.1 (331.1) (496.4)
Slide 24: Balance Sheet Summary
Balance Sheet Summary Average Loans Average Securities* Average Deposits ($s in billions) ($s in billions) ($s in billions) $25 $11 $32 $23.8 $23.9 $24 $23.6 $10 $23.2 $23.1 $29.6 $30 $29.1 $29.1 $23 $9 $8.3 $28.9 $28.8 $8.2 $8.2 $8.2 $8.2 $22 $8 $28 $21 $7 $20 $6 $26 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2
Slide 25: ICRE Segmentation Detail and Key Metrics
ICRE Segmentation Detail and Key Metrics ► ICRE loan portfolio is diversified by asset class, Total Loans Outstanding % of Total Commitment Loans industry and geographic region ($s in millions) Multifamily $883 3.8% $893 ► ICRE 17% of total loans and includes a variety of Office 672 2.9% 691 collate
Slide 26: EOP Loan Repricing and Maturity
EOP Loan Repricing and Maturity Repricing/Maturity Term (1) Rate Structure 3 months 4-12 Over 15 Total Loans Variable Fixed 1-3 Years 3-5 Years 5-15 Years ($s in millions) or less months Years (EOP) Rate Rate Commercial Non-RE $5,889 $363 $1,074 $1,218 $1,021 $71 $9,636 $6,149 $3,487 CRE-Owner 952 7
Slide 27: Total Loan Rates and Yield Trends
Total Loan Rates and Yield Trends Total Loans Fixed Loans Variable Loans Total Loan Yield** $30,000 6.40% 6.27% 6.24% $25,000 6.16% 6.20% 6.11% 6.02% $20,000 6.00% 5.84% $ in millions $15,000 5.80% $14,311 $14,524 $14,474 $14,021 $13,810 $13,557 $10,000 5.60% $5,000 5.40% $9,611 $9,447 $9,438 $9,435
Slide 28: New Loan Rates Impacted by Rate Environment
New Loan Rates Impacted by Rate Environment New Loans Fixed Loans Variable Loans Total New Loan Rate* $1,600 9.00% 8.15% 8.01% 7.91% 7.81% $1,400 7.07% 7.06% 7.50% $1,200 6.00% $1,000 $ in millions $800 4.50% $600 3.00% $400 $591 $621 $724 $855 $648 $793 1.50% $200 $356 $266 $291 $281 $298 $247 $0 0
Slide 29: Maintaining a Seasoned, Stable, Diversified Deposit Base
Maintaining a Seasoned, Stable, Diversified Deposit Base ► DDAs as a % of total deposits remains among best-in-class at 36% at March 31, 2025 ► Uninsured deposits (adjusted for collateralized public funds) were 37.7% at March 31, 2025, virtually flat linked-quarter EOP Deposits by Line of Business –
Slide 30: Strong Liquidity Position; Multiple Sources of Funding Available
Strong Liquidity Position; Multiple Sources of Funding Available ▶ Currently have approximately $19.8 billion in At March 31, 2025 Total Amount Net internal and external sources of liquidity if $ in millions Sources Used Availability needed Internal Sources Free Securities $ 4,460 $ - $ 4,460 ▶ Appr
Slide 31: Summary Income Statement
Summary Income Statement ($ in millions, except for per share data) Change 1Q25 4Q24 1Q24 LQ Prior Year Net interest income (TE) $272.7 $276.3 $269.0 $(3.6) $3.7 Provision for credit losses 10.5 11.9 13.0 (1.4) (2.5) Noninterest income 94.8 91.2 87.9 3.6 6.9 Noninterest expense 205.1 202.3 207.7 2.8
Slide 32: Income Statement Summary (as Adjusted)
Income Statement Summary (as Adjusted*) Adjusted PPNR* Net Interest Income (TE) Net Interest Margin (TE) ($s in millions) ($s in millions) $180 $320 3.75% $166.5 $165.2 $170 $162.4 $300 3.60% $274.5 $276.3 3.41% 3.43% $156.4 $273.3 $272.7 3.39% $160 $152.9 $280 $269.0 3.45% 3.37% 3.32% $150 $260 3.3
Slide 33: Current Hedge Positions
Current Hedge Positions Cash Flow (CF) Hedges ► Receive 247 bps versus paying 1-month SOFR on $1.5 billion ► Two additional hedges were added while no terminations were made during the first quarter ► Total termination value on remaining active CF hedges is approximately ($36) million as of 3/31/25
Slide 34: Remain Well Capitalized Including All Unrealized Losses
Remain Well Capitalized Including All Unrealized Losses 3/31/2025 Inc. AOCI Inc. AOCI + HTM Well Capitalized As Reported* Losses (1) Losses(2) Minimum Tangible Common Equity Ratio 10.01% 10.01% 9.67% N/A Leverage (Tier 1) Ratio 11.55% 10.40% 10.06% 5.00% CET1 Ratio 14.51% 12.94% 12.47% 6.50% Tier 1
Slide 35: PPNR (TE) and Adjusted PPNR (TE) Reconciliation
PPNR (TE) and Adjusted PPNR (TE) Reconciliation Three Months Ended (in thousands) 1Q25 4Q24 3Q24 2Q24 1Q24 Net Income (GAAP) $119,504 $122,074 $115,572 $114,557 $108,612 Provision for credit losses 10,462 11,912 18,564 8,723 12,968 Income tax expense 29,671 28,446 29,684 30,308 24,720 Pre-provision
Slide 36: Adjusted Efficiency Ratio
Adjusted Efficiency Ratio Three Months Ended (in thousands) 1Q25 4Q24 3Q24 2Q24 1Q24 Net interest income $269,905 $273,556 $271,764 $270,430 $266,171 Noninterest income 94,791 91,209 95,895 89,174 87,851 Total GAAP revenue 364,696 364,765 367,659 359,604 354,022 Taxable equivalent adjustment* 2,806
Slide 37: Adjusted Earnings Per Share - Diluted; Adjusted ROA and ROTCE
Adjusted Earnings Per Share - Diluted Three Months Ended (in thousands) 1Q25 4Q24 1Q24 Net Income (GAAP) $119,504 $122,074 $108,612 Net income allocated to participating securities (521) (661) (784) Net income available to common shareholders $118,983 $121,413 $107,828 Supplemental disclosure items,
Slide 38: First Quarter 2025 Earnings Conference Call
First Quarter 2025 Earnings Conference Call 4/15/2025 HANCOCK WHITNEY