Hancock Whitney Profit Climbs as Lending Expands
Period-end loans grew 2% from March to $24.58 billion, led by commercial borrowers.
Hancock Whitney Corporation (HWC), the bank holding company, posted a 12% increase in second-quarter net income to $127.0 million, while diluted earnings rose 17% to $1.55 a share.
The results marked a return to a cleaner earnings base after first-quarter profit of $47.4 million, or $0.57 a share, absorbed a $98.6 million pretax securities-restructuring loss. Hancock Whitney reported no supplemental disclosure items for the latest quarter.
Adjusted pre-provision net revenue rose 3% sequentially to $178.1 million. Tax-equivalent net interest income increased 3% to $295.2 million and was 6% higher than a year earlier, extending five consecutive quarters of growth. Net interest margin widened one basis point from March and seven basis points from a year earlier to 3.56%, as higher investment yields and lower deposit costs outweighed increased borrowing costs and lower loan yields.
Commercial lending drove the balance-sheet expansion. Period-end loans increased $588.3 million from March and roughly 5% from a year earlier, with commercial-and-industrial loans adding $304.2 million and income-producing commercial real estate rising $220.1 million. Deposits grew 2% sequentially to $29.63 billion, though average deposits slipped slightly as average loans rose, lifting the average loan-to-deposit ratio to 84.57%.
Noninterest income rebounded to $108.4 million from $7.5 million as the prior quarter's restructuring loss rolled off. Bank-card and ATM fees rose 5% sequentially, while investment, annuity and insurance income increased 16%; other noninterest income declined on lower syndication fees and small-business investment-company income. Expenses rose 2% to $225.4 million, reflecting merit increases and new hires, while the efficiency ratio edged down to 55.31%.
Credit measures improved as net charge-offs fell to 0.16% of average loans on an annualized basis from 0.19% in the first quarter, and criticized commercial loans declined to $492.0 million. The estimated common-equity Tier 1 ratio slipped 11 basis points sequentially to 13.18%, continuing its decline from 14.09% in the third quarter of 2024.
Hancock Whitney also announced its acquisition of One Florida Bank and expected the transaction to close Aug. 1. The company repurchased 712,966 shares during the quarter at an average price of $68.28, leaving roughly half of its current authorization available through the end of 2026.