Hancock Whitney Corporation Continues to Shine in Q2 2025
It was a stellar quarter for Hancock Whitney Corporation, as the financial institution demonstrated its commitment to profitability, efficiency, and growth. In a recent conference call, company executives highlighted several key achievements that have positioned them for success in an evolving economic landscape.
The second quarter of 2025 saw Hancock Whitney's Net Interest Margin (NIM) expand by 6 basis points, with the institution achieving a Return on Assets (ROA) of 1.37% after adjusting for expenses related to its transaction with Sabal Trust Company. Loan growth was driven by stronger demand, increased line utilization, and lower payoffs, resulting in a $364 million increase or 6% annualized.
According to John Hairston, President and CEO, the company remains focused on more granular, full relationship loans with the goal of achieving more favorable loan yields and relationship revenue. Hancock Whitney's guidance on loan growth remains unchanged, with expectations for low single-digit growth for the year 2025, implying mid-single-digit growth for the second half.
Deposits were down $148 million in Q2 2025, largely due to a decrease in Certificates of Deposit (CDs) as promotional rates reduced and public funds decreased. However, interest-bearing transaction balances and Demand Deposit Accounts (DDAs) increased during the quarter, with DDA mix rising to 37%. NIM continued to expand as average earning assets grew at higher yields, and deposit costs were reduced.
The company's fee income grew again in Q2 2025, with trust fees driving most of the growth thanks to additional team members and client book from Sabal Trust. Expenses remained controlled and in line with expectations, reflecting investments made in new revenue producers and technology efforts to improve efficiency and client experience.
During the quarter, Hancock Whitney returned capital to investors by repurchasing 750,000 shares of common stock and deployed capital through the execution of its acquisition of Sabal Trust. The company's capital ratios remained very solid, with Total Capital to Risk-Weighted Assets (TCE) at 9.84% and Common Equity Tier 1 ratio at 14.03%. These figures demonstrate Hancock Whitney's strong financial health and ability to navigate challenges in the market.
The company made meaningful progress on its organic growth plan this quarter, adding 10 net new bankers to the team during Q2 2025 and solidifying locations for five new financial center locations in the Dallas market. Three of these centers are expected to open in the second half of '25, with the remaining two scheduled to open in the first half of '26.
Hancock Whitney's executives expressed optimism regarding their growth prospects for the rest of the year, citing ample liquidity, a strong allowance for credit losses at 1.45%, and solid capital as key factors that keep them well-positioned to navigate challenges and support clients in any economy.
