HANCOCK WHITNEY CORP Q4 FY2024 earnings call

• Announced acquisition of Sabal Trust Company in St. Petersburg, Florida, making Florida the largest wealth management fee stake and Tampa-St. Pete MSA the largest individual wealth management fee market.
• Multiyear organic growth plan includes hiring 35 additional revenue-generating associates in 2025 and opening 5 new financial centers in North Dallas, with more Florida locations to be announced near Sabal transaction close.
• NIM expanded due to lower deposit costs, higher bond portfolio yield, and favorable funding mix. Fee income expected to increase 3.5%-4.5% in 2025. Operating expense down 1% for the quarter.
• Deposits up $510 million despite broker deposit maturities, DDA balances increased. Expect deposits to grow in low single digits in 2025.
• Returned capital to investors by repurchasing 150,000 shares of common stock. Regulatory capital metrics strong, ending the quarter with common equity Tier 1 ratio of 14.14% and TCE of 9.47%.

Net interest income and NIM increased due to controlling funding costs and offsetting lower rates. Fee income was modestly off due to lower secondary mortgage volume. Operating expense was modestly reduced. Loans were down $156 million but production was strong. Deposits were up $510 million. ROA was 1.40%, NIM expanded to 3.41%, net income was $122 million or $1.40 per share. Revenue contribution details: Net interest income and NIM are key drivers, fee income had fluctuations, deposits and loans have specific trends.

• Expect total loans to grow mid-single digits in 2025, tilting toward the second half.
• Anticipate modest NIM expansion and NII growth of 3.5%-4.5% in 2025 driven by loan growth, lower deposit rates, and bond portfolio repricing.
• Non-interest income expected to be up 3.5%-4.5% in 2025. Non-interest expense expected up 4%-5% in 2025. Efficiency ratio expected to fall between 55%-56% in 2025.
• Expect modest charge-offs and provision levels for 2025.
• Plan to continue share repurchases in 2025, with potential impact from Sabal acquisition after first quarter.

• Economic environment is rapidly evolving, making it difficult to accurately project results.
• Competition in certain sectors like equipment finance and commercial real estate may put pressure on loan yields.
• Macro changes could impact balance sheet growth and share valuation, affecting capital return plans.

Q: Michael Rose asked about buybacks and loan growth outlook.

A: Mike Achary said buybacks stepped down due to stock price movement and Sabal transaction, with intention to revert to around 300,000 shares per quarter. John Hairston discussed loan growth drivers including lack of SNIC portfolio impact, strong business banking pipeline, and improving commercial banking and CRE production.

Q: Matt Olney asked about Wealth Management segment and Sabal acquisition.

A: John Hairston and Mike Achary discussed the importance of wealth management, the strategic fit of Sabal acquisition, and plans for organic growth in wealth management and geographic expansion.

Q: Catherine Mealor asked about credit size commercial loans and charge-offs.

A: Chris Ziluca and John Hairston explained the composition of criticized loans, no significant sector or geography concentration, and expectation of modest charge-offs in line with peers.

Q: Ben Gerlinger asked about M&A and organic hire plan.

A: Mike Achary discussed complementary nature of organic growth and potential inorganic M&A, with size parameters in mind.

Q: Brett Rabatin asked about expense guidance and deposit/loan betas.

A: Mike Achary talked about expense growth in 2025 related to organic plan, and deposit/loan betas behaving as expected with focus on CD repricing and DDA balances.

Q: Gary Tenner asked about banker hires and impact.

A: John Hairston discussed impact on 2026 and percentage increase in bankers.

Q: Stephen Scouten asked about stock underappreciation and bank story.

A: Mike Achary highlighted past achievements and 2025 pivot to growth as key points.

Q: Christopher Marinac asked about C&I utilization.

A: Chris Ziluca and John Hairston discussed CRE impact on line utilization and C&I utilization trends.