HWC.NASDAQHancock Whitney CORP
DEF: Hancock Whitney Reports Strong 2025 Performance, Dividend Hike
Sentiment:
Proxy Statement
Hancock Whitney Corporation announced strong financial performance for 2025, including increased EPS, improved profitability, and a dividend increase, while advancing its organic growth strategy.
Better than expectedNet income per diluted share increased 7% to $5.67, exceeding prior year results.Adjusted pre-provision net revenue (PPNR) increased 6% to $679.9 million.Net interest margin improved 10 basis points to 3.47% despite a declining rate environment.Fee income increased 12%, with trust fees up 25% following an acquisition.Total loans grew 3% to $24.0 billion.Quarterly dividend increased by 12.5% in January 2025 and further in January 2026.Repurchased 4.3 million common shares.Efficiency ratio improved to 54.78%.Tangible book value per common share improved 12% to $54.22.Stock price improved 16% in 2025.
Summary
- Net income per diluted share (EPS) was $5.67 in 2025, an increase of 7% from $5.28 in 2024.
- Adjusted pre-provision net revenue (PPNR) increased 6% to $679.9 million.
- Net interest income grew 2%, and net interest margin (te) improved 10 basis points to 3.47% in 2025, despite a declining rate environment.
- Fee income increased 12% in 2025, led by 25% growth in trust fees following the acquisition of Sabal Trust Company.
- Total loans reached $24.0 billion at year-end 2025, up 3% from 2024.
- Total deposits ended 2025 at $29.3 billion, down $213 million, or 1%, from 2024.
- The loan-to-deposit ratio was 81.83% at year-end 2025, compared to 79.00% in 2024.
- The company maintained a strong capital position with a common equity tier one ratio (CET1) of 13.65% and a tangible common equity ratio (TCE) of 10.06% at year-end 2025.
- The Board of Directors approved a 12.5% increase in the quarterly dividend payment to $0.45 per common share in January 2025, and a further increase to $0.50 per common share in January 2026.
- Approximately 5% of the company's outstanding common shares (4.3 million shares) were repurchased in 2025.
- The efficiency ratio improved to 54.78% in 2025, compared to 55.36% in 2024.
- Criticized commercial loans declined in all four quarters of 2025, while nonaccrual loans were relatively stable.
Sentiment
Score: 8
Explanation: StockSavvy.ai views this filing as highly positive, reflecting strong financial performance across key metrics, strategic growth initiatives, and a clear commitment to shareholder returns through dividends and share repurchases, despite a slight dip in deposits.
Positives
- Net income per diluted share increased 7% to $5.67 in 2025, up from $5.28 in 2024.
- Adjusted pre-provision net revenue (PPNR) grew 6% to $679.9 million.
- Net interest margin improved 10 basis points to 3.47% despite a declining rate environment.
- Fee income increased 12%, with trust fees up 25% due to the Sabal Trust Company acquisition.
- Total loans grew 3% to $24.0 billion, reflecting broad-based growth and strong client demand.
- Strong capital position maintained with CET1 of 13.65% and TCE of 10.06% at year-end 2025.
- Quarterly dividend increased by 12.5% to $0.45 in January 2025, and further to $0.50 in January 2026.
- Repurchased 4.3 million common shares, approximately 5% of outstanding shares, demonstrating proactive capital management.
- Efficiency ratio improved to 54.78% in 2025 from 55.36% in 2024.
- Criticized commercial loans declined in all four quarters of 2025, and nonaccrual loans remained stable.
- Tangible book value per common share improved 12% in 2025, reaching $54.22.
- The stock price improved 16% during 2025, closing at $63.68 on December 31, 2025.
Negatives
- Total deposits decreased by $213 million, or 1%, to $29.3 billion at year-end 2025, influenced by the falling interest rate environment.
- A pre-tax charge of $5.9 million (or $0.05 per share after tax) was incurred in 2025 related to the acquisition of Sabal Trust Company.
- The common equity tier one ratio (CET1) decreased by 49 basis points to 13.65% at December 31, 2025, from 14.14% at December 31, 2024.
Risks
- Credit risk, including criticized commercial loans and nonaccrual loans.
- Liquidity risk, related to managing cash flow and funding obligations.
- Market risk, including exposure to interest rate fluctuations.
- Legal risk, encompassing potential litigation and regulatory non-compliance.
- Operational risk, which includes cybersecurity risk, technology risk, and artificial intelligence risks.
- Reputational risk, concerning public perception and trust.
- Strategic risk, related to the effectiveness of business strategies and initiatives.
- Potential excise tax payments that might be triggered by a change in control, impacting executive compensation.
Future Outlook
The company plans to continue its investment in new revenue producers and technology to deliver exceptional client experiences and sustain its growth trajectory in 2026, building on the strength of 2025 for long-term value creation.
Management Comments
- "We are proud to report another year of strong financial performance and execution of our multi-year organic growth strategy." Jerry L. Levens, Chairman of the Board, and John M. Hairston, President & CEO.
- "Hancock Whitney delivered improved profitability, balance sheet growth, and solid capital levels, all while advancing initiatives designed to create sustainable value for our clients, communities, associates, and shareholders." Jerry L. Levens, Chairman of the Board, and John M. Hairston, President & CEO.
- "We are very proud to have paid an uninterrupted quarterly dividend since 1967." Jerry L. Levens, Chairman of the Board, and John M. Hairston, President & CEO.
- "We believe we are well positioned to build on this momentum and continue enhancing shareholder value." Management (implied from Executive Summary).
Industry Context
StockSavvy.ai notes that Hancock Whitney's improved net interest margin despite a declining rate environment suggests effective balance sheet management, potentially outperforming peers struggling with rate compression. The significant growth in fee income, particularly from trust services following an acquisition, indicates a successful diversification strategy, which is a positive trend in the banking sector to offset interest rate volatility. The strong capital ratios and proactive share repurchases demonstrate a healthy financial position and commitment to shareholder returns, aligning with best practices for well-capitalized regional banks.
Comparison to Industry Standards
- The company's net interest margin expansion of 10 basis points to 3.47% in a declining rate environment compares favorably to many regional banks that have experienced NIM compression. For example, some larger regional banks have reported NIMs in the 3.00-3.20% range or even lower, indicating Hancock Whitney's effective asset-liability management.
- The 12% increase in fee income, with a 25% surge in trust fees due to the Sabal Trust Company acquisition, demonstrates strong performance in non-interest revenue generation. This is a key differentiator compared to banks heavily reliant on traditional lending, especially in volatile interest rate cycles.
- The common equity tier one ratio (CET1) of 13.65% and tangible common equity ratio (TCE) of 10.06% remain robust and well above regulatory minimums, positioning Hancock Whitney strongly compared to the average regional bank CET1 ratios, which often hover around 10-12%.
- The efficiency ratio improved to 54.78%, which is competitive within the regional banking sector, where top-performing banks often aim for ratios below 55%.
Management Changes
| Role | Previous Person | New Person | Effective Date | Reason |
|---|---|---|---|---|
| Director | Hardy B. Fowler | NA | April 23, 2025 | Did not stand for re-election at the 2025 annual meeting. |
| Director | NA | Albert J. Williams | April 23, 2025 | Appointed to the Board. |
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Board Size | The Board voted in February 2026 to maintain its size at 15 directors, effective as of the annual meeting. | February 2026 | Ensures continuity and stability in board composition while adhering to minimum director requirements. |
| Director Resignation Policy | If a director standing for election receives a greater number of withheld votes than for votes, the director will promptly tender their resignation. The Corporate Governance and Nominating Committee will recommend to the Board whether to accept or reject the resignation within 90 days. | NA (existing policy) | Enhances accountability of directors to shareholders and provides a mechanism for addressing significant shareholder dissent. |
| Compensation Recoupment Policy | A compensation recoupment policy compliant with Nasdaq and Rule 10D-1 under the Exchange Act has been adopted. It mandates recovery of erroneously awarded performance-based incentive compensation in the event of an accounting restatement and provides discretion for recovery in cases of misconduct causing material harm. | NA (existing policy, filed Feb 27, 2026) | Strengthens corporate governance by aligning executive incentives with accurate financial reporting and deterring misconduct. |
| Insider Trading Policy | The company's Insider Trading Policy prohibits all directors, officers, and associates (and their immediate family members) from engaging in hedging or monetization strategies involving company securities. | NA (existing policy, filed Feb 27, 2026) | Prevents conflicts of interest and promotes fair and transparent market practices regarding company stock. |
| Director Stock Ownership Guidelines | Directors are expected to accumulate and maintain company stock worth five times their annual Board cash retainer within five years of becoming subject to the guidelines. | January 1, 2022 (most recently amended) | Aligns directors' financial interests with the long-term performance and value creation for shareholders. |
| Board Diversity Initiatives | The Board actively seeks independent, highly qualified candidates reflecting a breadth of experience, skills, perspective, background, and geography. 33% of directors have been added since 2020, with 40% of those being women. One-third of current directors are women, with four of five serving in leadership roles. | Ongoing | Promotes cognitive diversity, enhances decision-making, and aids in effective, independent oversight on behalf of all stakeholders. |
| Mandatory Retirement Policy | A mandatory retirement policy for directors prohibits re-election after their 72nd birthday. | NA (existing policy) | Ensures regular board refreshment and the introduction of new perspectives and expertise. |
| Board Succession Planning | The Board has established an ongoing Board succession planning process. | Ongoing | Ensures the Board continues to have the necessary depth and breadth of experience and perspective for a strong financial institution. |
| Director Public Company Board Limits | Corporate Governance Guidelines prohibit directors from serving on more than three other public company boards in addition to the company's Board. | NA (existing policy) | Ensures directors have sufficient time and focus to dedicate to their responsibilities to Hancock Whitney. |
Related Party Transactions
- The Company, through the Bank, makes loans in the ordinary course of business to insiders (directors, executive officers, their family members, and related interests) on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with non-related persons.
- No such loans involved more than the normal risk of repayment or presented other unfavorable features requiring disclosure.
- The Audit Committee is responsible for reviewing and approving all Related Party Transactions.
- The Bank has a special written policy governing affiliate and insider lending transactions, and a Regulation O Monitoring Officer assists in identifying and reviewing pertinent transactions with identified insiders to ensure compliance.
Stakeholder Impact
- Shareholders: Positive impact from increased EPS, dividend increases, share repurchases, improved stock price, and strong capital management.
- Clients: Strengthened product offerings and enhanced digital capabilities aim to deliver exceptional client experiences and meet evolving demands.
- Associates: Dedicated associates contributed to fee income growth, and compensation programs are designed to attract, motivate, and retain high-quality executives.
- Communities: The company maintains a commitment to generating sustainable value for the communities it serves.
- Employees: Executive compensation programs are designed to be internally consistent and equitable to motivate associates.
Next Steps
- Annual Meeting of Shareholders to be held on Wednesday, April 29, 2026, at 11:00 a.m. Central Time in a virtual-only format.
- Shareholders will vote to elect five directors to serve until the 2029 annual meeting of shareholders.
- Shareholders will vote to approve, on an advisory basis, the compensation of named executive officers.
- Shareholders will vote to ratify the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2026.
- The company plans to continue its investment in new revenue producers and technology to deliver exceptional client experiences in 2026.
- Management looks forward to building on the strength of 2025 to pursue new opportunities for growth and long-term value creation for shareholders.
- Shareholder proposals for the 2027 annual meeting must be received by the Corporate Secretary no later than November 17, 2026, to be included in proxy materials (under SEC Rule 14a-8).
- Shareholder advance notice for nominations or business for the 2027 annual meeting must be delivered between December 30, 2026, and January 29, 2027.
Key Dates
| Date | Description |
|---|---|
| 1967 | Year since which the company has paid an uninterrupted quarterly dividend. |
| 1978 | Frank E. Bertucci started with F.E.B. Distributing Co., Inc. |
| 1979 | Sonia A. Prez joined SBC (later AT&T). |
| 1983 | Christine L. Pickering started working in the accounting field. |
| 1983 | H. Merritt Lane, III was an investment banker with PaineWebber Inc. |
| 1984 | Randall W. Hanna practiced law with Bryant Miller Olive. |
| 1986 | H. Merritt Lane, III joined Canal Barge Company. |
| 1987 | Moses H. Feagin Sr. began his Southern Company career at Alabama Power. |
| 1988 | C. Richard Wilkins served as a law clerk for Judge William Brevard Hand. |
| 1990 | Frank E. Bertucci became President of F.E.B. Distributing Co., Inc. |
| 1990 | C. Richard Wilkins began practicing law with Vickers, Riis, Murray and Curran, L.L.C. |
| 1991 | Christine L. Pickering started Christy Pickering, CPA. |
| 1991 | Albert J. Williams joined Chevron as an engineer. |
| 1994 | H. Merritt Lane, III became President and Chief Executive Officer of Canal Barge Company, Inc. |
| 1995 | Frank E. Bertucci served as a director of Hancock Bank. |
| 1997 | Joan C. Teofilo was a member of TEA's founding launch team. |
| 1997 | Thomas H. Olinde became President of Olinde Hardware & Supply Co., LLC. |
| 1999 | Moses H. Feagin Sr. became Alabama Power's Accounting Operations manager. |
| 2000 | Frank E. Bertucci became a director of Hancock Whitney Corporation. |
| 2000 | Christine L. Pickering became a director of Hancock Whitney Corporation. |
| 2000 | Moses H. Feagin Sr. moved to Southern Company Services as Generation Accounting manager. |
| 2001 | Frank E. Bertucci became Chief Executive Officer of Capital City Beverage. |
| 2001 | H. Merritt Lane, III became a director of Pontchartrain Materials Corporation, L.L.C. |
| 2004 | H. Merritt Lane, III served on the board of International Shipholding Corp. |
| 2005 | Moses H. Feagin Sr. was elected comptroller of Mississippi Power. |
| 2005 | Sonia A. Prez joined AT&T Inc. |
| 2006 | John M. Hairston became a director of Hancock Whitney Corporation. |
| 2006 | Thomas H. Olinde served as a director of Hancock Bank of Louisiana. |
| 2007 | C. Richard Wilkins served as Director and Chairman of Hancock Bank of Alabama. |
| 2007 | Christine L. Pickering served as a director of Mississippi Power Company. |
| 2007 | Randall W. Hanna served as a director of Hancock Bank of Florida. |
| 2008 | John M. Hairston became Chief Executive Officer of the Company and the Bank. |
| 2008 | Jerry L. Levens served as a director of Hancock Bank. |
| 2008 | Constantine S. Liollio served as President of PAA Natural Gas Storage, LLC. |
| 2008 | H. Merritt Lane, III served on the board of Hibernia Homestead Bancorp., Inc. |
| 2008 | Moses H. Feagin Sr. became vice president and comptroller of Alabama Power. |
| 2008 | Suzette K. Kent was a Managing Director at J.P. Morgan. |
| 2009 | Jerry L. Levens became a director of Hancock Whitney Corporation. |
| 2009 | Randall W. Hanna became a director of Hancock Whitney Corporation. |
| 2009 | Thomas H. Olinde became a director of Hancock Whitney Corporation. |
| 2009 | Christine L. Pickering became Chair of Mississippi Power Company's Controls and Compliance Committee. |
| 2010 | Joan C. Teofilo became President and Chief Executive Officer of The Energy Authority (TEA). |
| 2010 | Sonia A. Prez served as President, AT&T Louisiana. |
| 2011 | C. Richard Wilkins served as a director of Hancock Bank. |
| 2011 | Randall W. Hanna served as Chancellor of the Florida College System. |
| 2011 | Sonya C. Little served as Chief Financial Officer for the City of Tampa. |
| 2014 | John M. Hairston became President of the Company. |
| 2014 | C. Richard Wilkins served on the Market Advisory Board of the Bank. |
| 2015 | C. Richard Wilkins joined the Mobile, Alabama, office of Maynard, Cooper & Gale law firm. |
| 2015 | Randall W. Hanna served as a faculty member at Florida State University. |
| 2015 | Suzette K. Kent was a financial services business transformation Principal at Ernst & Young (EY). |
| 2016 | Constantine S. Liollio became a director of Hancock Whitney Corporation. |
| 2016 | Joan C. Teofilo became a director of Hancock Whitney Corporation. |
| 2016 | Sonya C. Little became a director of Hancock Whitney Corporation. |
| 2016 | C. Richard Wilkins became a director of Hancock Whitney Corporation. |
| 2016 | Randall W. Hanna became Dean of Florida State University Panama City and Florida State University College of Applied Studies. |
| 2017-06-17 | Hancock Whitney Corporation Pension Plan amended to exclude individuals hired after this date. |
| 2018 | Sonia A. Prez served as President, Southeast States, for AT&T Inc. |
| 2018 | Suzette K. Kent served as the Federal Chief Information Officer of the United States. |
| 2019 | Thomas H. Olinde sold a majority interest of Olinde Hardware and Supply Co., LLC. |
| 2019 | Jerry L. Levens retired from Alexander, Van Loon, Sloan, Levens & Favre, PLLC. |
| 2019 | Sonia A. Prez served on the board of directors of Sanderson Farms, Inc. |
| 2019 | Albert J. Williams served as Managing Director of Chevron Australia. |
| 2019 | Sonya C. Little served as Executive Vice President and Chief Administrative Officer of Strategic Property Partners. |
| 2020 | Suzette K. Kent became a director of Hancock Whitney Corporation. |
| 2020 | C. Richard Wilkins established his current law firm. |
| 2020 | Christine L. Pickering served as a director of Mississippi Power Company. |
| 2020 | Suzette K. Kent became Chief Executive Officer of Kent Advisory Services. |
| 2021 | H. Merritt Lane, III became a director of Hancock Whitney Corporation. |
| 2021 | Sonia A. Prez became a director of Hancock Whitney Corporation. |
| 2021 | Albert J. Williams served as corporate officer and Vice President of Corporate Affairs at Chevron Corporation. |
| 2022-01-01 | Effective date of amended director and executive stock ownership guidelines. |
| 2022 | Sonya C. Little was a member of the Board of Directors of Turner Construction Company. |
| 2023 | Performance stock awards granted in 2023 vested at 129.24% of target shares based on performance. |
| 2024 | Moses H. Feagin Sr. became a director of Hancock Whitney Corporation. |
| 2024 | Constantine S. Liollio served as Senior Vice President, Special Projects of Plains All American. |
| 2025-01 | Board of Directors approved a 12.5% increase in quarterly common stock cash dividend to $0.45 per share. |
| 2025-01-01 | Start of the three-year performance period for 2025 PSUs. |
| 2025-01-26 | C. Richard Wilkins inadvertently failed to file a Form 4 to report a transfer of 200 shares from a family trust. |
| 2025-02 | Corporate Governance Committee met to evaluate director nominees. |
| 2025-02-28 | Grant date for 2025 PSUs and RSUs. |
| 2025-04-01 | Effective date for NEO base salary increases. |
| 2025-04-23 | Annual equity grant date for non-employee directors. |
| 2025-04-23 | Albert J. Williams was appointed to the Board. |
| 2025-06-24 | Transaction date for Albert Williams' late Form 4 filing. |
| 2025-07-08 | Albert Williams filed a late Form 4. |
| 2025-10 | Aon conducted a review of executive compensation for 2026 decisions. |
| 2025-12 | Board of Directors authorized a new share repurchase program effective through December 31, 2026. |
| 2025-12-31 | End of fiscal year 2025. |
| 2026-01 | Board of Directors approved a further dividend increase to $0.50 per common share. |
| 2026-01-28 | Compensation Committee certified performance results for 2023 PSUs. |
| 2026-01-29 | Vanguard Group Inc. filed Schedule 13F-HR. |
| 2026-01-30 | Trading day prior to distribution of 2023 PSU shares. |
| 2026-02-01 | Vesting date for 2023 PSUs. |
| 2026-02-05 | FMR, LLC filed Schedule 13G/A. |
| 2026-02-12 | BlackRock, Inc. filed Form 13F-HR. |
| 2026-02-12 | Dimensional Fund Advisors LP filed Form 13F-HR. |
| 2026-02-13 | State Street Corp. filed 13F-HR. |
| 2026-02-27 | Company filed Annual Report on Form 10-K for fiscal year ended December 31, 2025. |
| 2026-03-02 | Record date for the 2026 Annual Meeting of Shareholders. |
| 2026-03-17 | Date of the proxy statement and availability of proxy materials online. |
| 2026-04-28 | Deadline for online and phone proxy submissions (11:59 p.m. Eastern Time / 10:59 p.m. Central Time). |
| 2026-04-29 | Date of the Annual Meeting of Shareholders (11:00 a.m. Central Time). |
| 2026-04-29 | Deadline for mail proxy submissions (9:00 a.m. Central Time). |
| 2026-11-17 | Deadline for shareholder director recommendations for the 2027 Annual Meeting (SEC Rule 14a-8). |
| 2026-12-30 | Earliest date for shareholder advance notice of nominations or business for the 2027 Annual Meeting. |
| 2026-12-31 | End date for the new share repurchase program authorized in December 2025. |
| 2027-01-29 | Latest date for shareholder advance notice of nominations or business for the 2027 Annual Meeting. |
| 2027-12-31 | End of the three-year performance period for 2025 PSUs. |
| 2029 | Year when the terms of the five nominated directors expire. |
Recommendation
strong buyThe company demonstrated robust financial performance in 2025 with significant EPS growth, improved profitability metrics like PPNR and NIM, and strong fee income expansion. Proactive capital management, including dividend increases and substantial share repurchases, signals confidence and commitment to shareholder returns. While deposits saw a slight decline, overall balance sheet growth and strong capital ratios indicate a healthy and well-managed institution. The strategic investments in technology and revenue-enhancing initiatives, coupled with an improved efficiency ratio, position the company for continued growth. The stock's 16% appreciation in 2025, alongside a 12% increase in tangible book value per share, further supports a strong buy recommendation for long-term investors.
Keywords
Hancock Whitney Corporation, HWC, Proxy Statement, Financial Performance, EPS, Net Income, Dividends, Share Repurchase, Loans, Deposits, Net Interest Margin, Fee Income, Capital Ratios, Corporate Governance, Executive Compensation, Risk Management, Banking, Financial Services, Sabal Trust Company Acquisition, Shareholder Meeting
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