HWC Q1 Earnings Beat Estimates on NII & Fee Income Growth

Hancock Whitney Corp.’s HWC first-quarter 2025 earnings per share of $1.38 exceeded the Zacks Consensus Estimate and the year-ago figure of $1.28. Results benefited from an increase in non-interest income and net interest income (NII). Lower provisions were another positive. However, higher adjusted expenses alongside lower loans and deposits balances were headwinds.Net income was $119.5 million, up 10% from the prior-year quarter. Our estimate for the metric was $111.7 million.HWC’s Revenues & Adjusted Expenses RiseQuarterly total revenues amounted to $364.7 million, up 3% year over year. The top line narrowly missed the Zacks Consensus Estimate of $364.8 million.NII (on a tax-equivalent basis) increased 1.4% year over year to $272.7 million. The net interest margin (NIM) was 3.43%, which expanded 11 basis points (bps). Our estimates for NII and NIM were pegged at $275.8 million and 3.45%, respectively.Non-interest income totaled $94.8 million, up 7.9%. The rise was driven by an increase in almost all components except investment and annuity fees and insurance commissions. We had projected non-interest income of $90.3 million.Total non-interest expenses (GAAP) decreased 1.3% to $205.1 million. We had projected expenses of $210.8 million. Adjusted expenses rose marginally. The efficiency ratio decreased to 55.22% from 56.44% in the year-ago quarter. A decline in the efficiency ratio indicates an increase in profitability.As of March 31, 2025, total loans were $23.1 billion, down roughly 1% from the prior quarter. Also, total deposits declined 1% on a sequential basis to $29.2 billion. Our estimates for total loans and deposits were pegged at $23.5 billion and $29.9 billion, respectively.HWC’s Credit Quality: Mixed BagThe provision for credit losses was $10.5 million, down 19.3% from the prior-year quarter. Our estimate for provisions was $12 million.Net charge-offs (annualized) were 0.18% of average total loans, up 3 bps from the prior-year quarter.HWC’s Capital Ratios & Profitability Ratios ImproveAs of March 31, 2025, the Tier 1 leverage ratio was 11.55%, up from 10.49% at the end of the year-ago quarter. The common equity Tier 1 ratio was 14.51%, up from 12.65% as of March 31, 2024.At the end of the first quarter of 2025, the return on average assets was 1.41%, up from the year-ago period’s 1.24%. The return on average common equity was 11.59%, up from 11.44% in the prior-year quarter.HWC’s Share Repurchase UpdateIn the reported quarter, HWC repurchased 0.35 million shares at an average price of $59.25 per share.Our View on Hancock WhitneyHancock Whitney’s strategic expansion initiatives will likely keep supporting top-line growth. In March, it received regulatory approvals for the proposed acquisition of Sabal Trust Company. Further, bond restructuring efforts and relatively higher rates are expected to support NII and NIM expansion. However, weak asset quality 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).Performance of Another BankWaFd, Inc.’s WAFD second-quarter fiscal 2025 (ended March 31) adjusted earnings of 65 cents per share outpaced the Zacks Consensus Estimate of 60 cents. Also, the bottom line increased significantly year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)WAFD’s results were primarily aided by a rise in NII and non-interest income. Lower non-interest expenses and provision for credit losses also supported WAFD’s performance. However, the decline in loan balance acted as a spoilsport.An Upcoming Bank ReleaseHilltop Holdings Inc. HTH is slated to report first-quarter 2025 results on April 25. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Over the past seven days, the Zacks Consensus Estimate for HTH’s quarterly earnings has remained unchanged at 28 cents per share.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want 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 Hilltop Holdings Inc. (HTH): 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