HWC Q3 Earnings Beat Estimates on NII & Fee Income Growth, Stock Down

Hancock Whitney Corp.’s HWC third-quarter 2025 earnings per share of $1.49 exceeded the Zacks Consensus Estimate of $1.41. Further, the bottom line rose 12% from the prior year quarter.Results benefited from an increase in non-interest income and net interest income (NII) alongside lower provisions. Also, higher loans were another positive. However, higher adjusted expenses alongside lower deposit balances were headwinds. Given these negatives, the company’s shares declined 2.7% in Tuesday’s after-market session.Net income was $127.5 million, up 10.3% from the prior-year quarter. Our estimate for the metric was $119.5 million.HWC’s Revenues & Expenses RiseQuarterly total revenues amounted to $385.7 million, up 4.9% year over year. However, the top line lagged the Zacks Consensus Estimate of $387.9 million.NII (on a tax-equivalent basis) increased 2.9% year over year to $282.3 million. The net interest margin (NIM) was 3.49%, which expanded 10 basis points (bps). Our estimates for NII and NIM were pegged at $283.7 million and 3.52%, respectively.Non-interest income totaled $106 million, up 10.5%. The rise was driven by an increase in almost all components except other income. We had projected non-interest income of $105 million.Total non-interest expenses (GAAP) increased 4.4% to $212.8 million. We had projected expenses of $217.4 million. The efficiency ratio decreased to 54.10% from 54.42% in the year-ago quarter. A decline in the efficiency ratio indicates an increase in profitability.As of Sept. 30, 2025, total loans were $23.6 billion, up marginally from the prior quarter. However, total deposits declined 1.3% on a sequential basis to $28.7 billion. Our estimates for total loans and deposits were pegged at $23.9 billion and $29.4 billion, respectively.HWC’s Credit Quality ImprovesThe provision for credit losses was $12.7 million, down 31.9% from the prior-year quarter. Our estimate for provisions was $16.5 million.Net charge-offs (annualized) were 0.19% of average total loans, down 11 bps from the prior-year quarter.HWC’s Capital Ratios Improve, Profitability Ratios MixedAs of Sept. 30, 2025, the Tier 1 leverage ratio was 11.46%, up from 11.03% at the end of the year-ago quarter. The common equity Tier 1 ratio was 14.08%, up from 13.78% as of Sept. 30, 2024.At the end of the third quarter of 2025, the return on average assets was 1.46%, up from 1.32% in the year-ago period. The return on average common equity was 11.58%, up from 11.43% in the prior-year quarter.HWC’s Share Repurchase UpdateIn the reported quarter, HWC repurchased 0.66 million shares at an average price of $60.45 per share.Our View on Hancock WhitneyHancock Whitney’s strategic expansion initiatives will likely keep supporting top-line growth. Further, bond restructuring efforts and relatively higher rates are expected to support NII and NIM expansion. However, weak asset quality, higher expenses and subdued mortgage income are woes.Hancock Whitney Corporation Price, Consensus and EPS Surprise Hancock Whitney Corporation price-consensus-eps-surprise-chart | Hancock Whitney Corporation QuoteCurrently, Hancock Whitney carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Release Dates of Other BanksWaFd, Inc. WAFD is slated to report fourth-quarter and full-year fiscal 2025 (ended Sept. 30) results on Oct.16. Over the past seven days, the Zacks Consensus Estimate for WAFD’s quarterly earnings has remained unchanged at 75 cents per share. Huntington Bancshares Inc. HBAN is slated to report third-quarter 2025 results on Oct. 17. Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has remained unchanged at 38 cents per share.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Huntington Bancshares Incorporated (HBAN): Free Stock Analysis Report WaFd, Inc. (WAFD): Free Stock Analysis Report Hancock Whitney Corporation (HWC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks