Business Overview Hancock Whitney Corporation, a leading financial institution in the Gulf South region, has weathered countless economic storms throughout its illustrious 125-year history. From its humble beginnings as a community bank in Gulfport, Mississippi, the company has evolved into a diversified financial services provider, serving commercial, small business, and retail customers across a wide geographic footprint.
Hancock Whitney was founded in 1899 as Hancock County Bank, primarily serving the local community. The company has demonstrated remarkable resilience throughout its history, successfully navigating challenges such as the Great Depression, various economic downturns, and natural disasters like hurricanes that have impacted its regional markets. In 2017, the company took proactive steps to improve its financial position by amending its pension plan to exclude new hires and freeze accrued benefits for certain participants. This move was part of a broader strategy to derisk its balance sheet and enhance profitability in the face of persistent low interest rates and economic uncertainty following the financial crisis.
Recognizing the importance of technological advancements in the banking sector, Hancock Whitney has invested heavily in technology and digital banking capabilities to enhance the customer experience and drive operational efficiencies. The company's commitment to innovation has helped it maintain a competitive edge in an increasingly digital financial landscape.
Throughout its history, Hancock Whitney has maintained a strong focus on community involvement and philanthropic support, reflecting its founding principles of "doing right and doing good." This emphasis on social responsibility has been instrumental in building trust and loyalty with customers over the company's 125-year history.
In 2018, Hancock Whitney pursued a strategic acquisition of Capital One's asset management business, which significantly expanded its wealth management capabilities. This move, along with other initiatives, has helped the company diversify its revenue streams and reduce its reliance on net interest income.
Today, Hancock Whitney Corporation operates as a diversified financial services company, providing a comprehensive suite of products and services through its banking subsidiary, Hancock Whitney Bank. The company's core business lines include commercial and industrial lending, commercial real estate financing, consumer banking, wealth management, and trust services. Geographically, the company's footprint spans across southern and central Mississippi, southern and central Alabama, northwest, central and southern Louisiana, the northern, central and panhandle regions of Florida, certain areas of east and northeast Texas, and the metropolitan areas of Nashville, Tennessee and Atlanta, Georgia.
Financial Performance Hancock Whitney's financial performance has been consistently strong, with the company weathering various economic cycles and market conditions. While the company does not have access to recent financial statements, its 2024 10-K filing provides valuable insights into its historical performance.
In the fiscal year ended December 31, 2024, Hancock Whitney reported net income of $460.81 million, or $5.28 per diluted share. The company's total assets stood at $35.08 billion, with a loan portfolio of $23.30 billion and total deposits of $29.49 billion. Hancock Whitney's net interest margin for the year was 3.37%, reflecting the company's ability to effectively manage its interest rate risk and optimize its funding sources.
The company's credit quality metrics remained strong, with a nonaccrual loan ratio of 0.42% and an allowance for credit losses to total loans ratio of 1.47% as of December 31, 2024. Hancock Whitney's capital ratios also remained robust, with a common equity Tier 1 ratio of 14.14% and a tangible common equity ratio of 9.47% at the end of the fiscal year.
For the most recent quarter, Hancock Whitney reported revenue of $363.71 million and net income of $122.07 million. Year-over-year growth data and cash flow figures were not provided.
Loan Portfolio and Deposits As of December 31, 2024, Hancock Whitney's loan portfolio totaled $23.30 billion, down 3% from $23.92 billion at the end of 2023. The loan portfolio is diversified across various sectors:
- Commercial and industrial loans (including commercial non-real estate and owner-occupied commercial real estate): 55% of total - Commercial real estate (income-producing properties and construction/land development): 21% - Residential mortgages (closed-end loans secured by 1-4 family residential properties): 17% - Consumer loans (home equity, auto, and other personal loans): 6%
Total deposits were $29.49 billion at the end of 2024, slightly down from $29.69 billion in 2023. The deposit base comprises:
- Noninterest-bearing demand deposits: $10.60 billion - Interest-bearing deposits: $18.90 billion (including transaction/savings accounts, time deposits, and public fund deposits)
Net Interest Income and Noninterest Income Net interest income, the primary driver of earnings, was $1.08 billion in 2024, down 1% from $1.10 billion in 2023. The net interest margin expanded 3 basis points to 3.37% in 2024 as higher earning asset yields offset an increase in funding costs.
Noninterest income totaled $364.13 million in 2024, up 26% from $288.48 million in 2023. Key contributors to noninterest income include service charges on deposit accounts, trust fees, bank card and ATM fees, investment and annuity fees, and income from secondary mortgage market operations.
Liquidity Hancock Whitney's liquidity position remains strong, as evidenced by its robust deposit base and diverse funding sources. The company's total deposits of $29.49 billion provide a stable and cost-effective funding source for its operations. Additionally, Hancock Whitney maintains access to various liquidity sources, including Federal Home Loan Bank borrowings and other short-term funding options, to ensure adequate liquidity in various market conditions.
Recent Developments and Outlook In 2025, Hancock Whitney announced the acquisition of Sabal Trust Company, a Florida-based wealth management firm. This strategic move is expected to expand the company's trust and asset management business, with the addition of Sabal's leadership team and approximately $3 billion in assets under management. The transaction is anticipated to close in the second quarter of 2025, subject to regulatory approval.
Additionally, Hancock Whitney unveiled a multiyear organic growth plan, which includes hiring additional revenue-generating associates throughout 2025 and expanding its footprint in Florida and Texas through the opening of five new financial centers in the North Dallas area. The company expects to announce further expansion plans in Florida as the Sabal Trust acquisition nears completion.
Despite the uncertain economic environment, Hancock Whitney remains well-positioned to navigate the challenges ahead. The company's guidance for 2025 suggests modest loan growth in the mid-single digits, with a focus on more granular, full-relationship loans to enhance yields and relationship revenue. The company also anticipates low single-digit deposit growth and moderate expense increases to support its organic growth initiatives.
Specific guidance for 2025 includes:
- Total loans to grow in the mid-single digits, tilting toward the second half of the year - Deposits to grow in the low single digits - Net interest income (NII) and net interest margin (NIM) to have modest growth, with NIM expansion and NII growth of 3.5% to 4.5% - Non-interest income to be up 3.5% to 4.5% from 2024 - Non-interest expense to be up 4% to 5% from the 2024 adjusted level, inclusive of the organic growth plan but excluding any costs related to the Sabal acquisition - Pre-provision net revenue (PPNR) to be up 3% to 4% from the 2024 adjusted level - Efficiency ratio to fall between 55% and 56% - Modest charge-offs and provision levels
It's worth noting that this guidance does not include any impacts from the announced acquisition of Sabal Trust Company. The company plans to update the guidance to be inclusive of Sabal after the first quarter.
In the previous quarter, Hancock Whitney achieved an ROA of 1.40%, which was considered a notable performance. The company also reported continued NIM expansion and ended the quarter with a total risk-based capital of nearly 16%.
Risks and Challenges As with any financial institution, Hancock Whitney faces various risks and challenges, including changes in interest rates, credit quality deterioration, regulatory changes, and competition from both traditional and non-traditional financial services providers. The company's geographic concentration in the Gulf South region also exposes it to potential weather-related events and natural disasters that could disrupt its operations.
Additionally, the company's exposure to certain industry concentrations, such as commercial real estate, healthcare, and energy, could pose risks if specific sectors experience significant stress. Hancock Whitney actively monitors these concentrations and adjusts its risk management strategies accordingly.
Conclusion Hancock Whitney Corporation's 125-year history is a testament to its resilience and adaptability. The company has navigated numerous economic cycles, weathered various challenges, and emerged as a prominent financial institution in the Gulf South region. With its strategic acquisitions, organic growth initiatives, and a strong capital position, Hancock Whitney appears well-positioned to continue delivering value to its shareholders, customers, and communities it serves. The company's focus on diversified lending, deposit growth, and fee-based revenue streams, coupled with its commitment to technological innovation and community engagement, sets a solid foundation for future growth and success in the evolving financial services landscape.