Hancock Whitney Corporation Exceeds Expectations, Embarks on Ambitious Growth Plan
Hancock Whitney Corporation kicked off the new year with a bang, releasing its fourth-quarter 2024 earnings report that showcased impressive profitability and growth prospects. The company's President and CEO, John Hairston, expressed his satisfaction with the quarter's results during the conference call, highlighting an ROA of 1.40% and continued net interest margin (NIM) expansion.
The highlights from the quarter include a notable increase in NIM, which was achieved by effectively managing funding costs despite lower rates and changes in new loan production mix. Fee income, however, experienced a modest decline due to lower secondary mortgage volume caused by higher rates and reduced specialty income numbers. Despite these minor setbacks, Hancock Whitney managed to post a reduction in operating expenses for the quarter.
Notable developments from the conference call include the acquisition of Sabal Trust Company, a move that aligns perfectly with Hancock Whitney's strategy to develop greater market share in high-growth areas around its geographic footprint. Following the close, Florida will become the company's largest wealth management fee stake, and the Tampa [St Pete MSA] will become its largest individual wealth management fee market.
Chris Ziluca, Chief Credit Officer, emphasized Hancock Whitney's commitment to creating value through smart capital deployment. The acquisition of Sabal Trust Company is a testament to this strategy, as it enables the company to tap into new revenue streams and expand its presence in key markets.
Hancock Whitney has also announced a multi-year organic growth plan, which includes hiring additional revenue-generating associates throughout 2025 and expanding its footprint in Florida and Texas through opening five additional financial center locations in North Dallas. The company expects to announce further expansion plans in Florida as the Sabal transaction nears completion.
This ambitious growth strategy is accompanied by an updated guidance for 2025, which reflects the organic growth plan but excludes any impacts from the acquisition of Sabal Trust Company. Hancock Whitney's leadership remains focused on achieving mid-single-digit loan growth in 2025, with a tilt toward the second half of the year.
The company's commitment to granular full relationship loans is also evident, as it seeks to achieve more favorable yields and relationship revenue. Deposits experienced a $510 million increase despite the maturity of $183 million in broker deposits, demonstrating Hancock Whitney's ability to adapt to market conditions.
