[Management View]
Key metrics: NIM expanded six basis points, adjusted ROA at 1.37%, adjusted net income at $118 million, PPNR increased by 3%.
Strategic priorities: Focus on profitability, efficiency, and organic growth, with significant contributions from the Sable Trust acquisition.

[Outlook]
Performance guidance: Modest NIM expansion and 3%-4% NII growth expected in the second half of 2025. Fee income strength anticipated to persist.
Future plans: Continued CD repricing at lower rates, organic hiring plan targeting a 10% increase in bankers annually, and new financial center openings in Dallas.

[Financial Performance]
YoY/QoQ trends: NII rose by 2% QoQ, fee income increased by 4%, expenses up by 2%, efficiency ratio improved to 54.91%. Loans grew by 6% annualized, deposits down by $148 million.

[Q&A Highlights]
Question 1: Do you have a target CET1 ratio considering deregulatory efforts?
Answer: Comfortable operating at 11%-11.5% for CET1 and around 8% for TCE. These levels are not hard lines and can vary based on circumstances.

Question 2: What are the drivers for loan growth and borrower health?
Answer: Net new loans to new clients are the primary driver. Borrowers are less sensitive to headlines and more focused on facts. Construction and development headwinds expected to ease by early 2026.

Question 3: Can you provide more color on NIM outlook?
Answer: NIM expansion expected regardless of rate cuts, driven by stable DDA mix, reduced deposit costs, and loan growth. CDs will continue to reprice lower, supporting NIM expansion.

Question 4: How much of the expense base came from the Sable Trust acquisition?
Answer: Sable Trust contributed about $2.5 million to the expense increase in Q2 2025.

Question 5: What is the M&A market like, and what would draw you back into acquisitions?
Answer: M&A is not a current focus but remains opportunistic. Capital priorities are organic growth, shareholder returns, and potential future M&A opportunities.

Question 6: Are SNCs at a floor on a dollar basis?
Answer: SNCs are expected to remain between 9%-10% of the loan book, with no significant runoff anticipated.

Question 7: How will rate cuts impact deposit pricing flexibility?
Answer: Deposit betas will creep up closer to expected levels with rate cuts. Proactive in reducing deposit costs to match loan repricing.

Question 8: What caused the spread compression in new loan originations?
Answer: Competitive environment and aggressive calling campaigns for owner-occupied real estate. Overall loan yield remains strong.

Question 9: What drives fee income growth?
Answer: Trust fees, treasury products, and card revenue. Full benefit of Sable Trust expected in Q3 2025.

Question 10: How do you view the future path for M&A?
Answer: Focus on organic growth and profitability. M&A may be pursued if shares warrant valuation.

Question 11: Will you increase hiring if M&A opportunities arise?
Answer: No ceiling on hiring good talent. Goal is 10% compounded annual growth in bankers, with potential to exceed if opportunities arise.

Question 12: Are there opportunities from non-depository borrowers?
Answer: Opportunistic approach, not specifically targeting non-depository borrowers but open to relationships that make sense.

[Sentiment Analysis]
Tone of analysts: Generally positive, with interest in loan growth, NIM outlook, and strategic priorities.
Tone of management: Confident and focused on organic growth, efficiency, and strategic expansion.

[Quarterly Comparison]
| Metric | Q2 2025 | Q1 2025 |
|-------------------------|---------------|---------------|
| NIM | +6 bps | - |
| Adjusted ROA | 1.37% | - |
| Adjusted Net Income | $118 million | $120 million |
| PPNR | +3% | - |
| NII | +2% | - |
| Fee Income | +4% | - |
| Expenses | +2% | - |
| Efficiency Ratio | 54.91% | 55.22% |
| Loan Growth | +6% annualized| - |
| Deposit Balances | -$148 million | - |

[Risks and Concerns]
- Potential macroeconomic changes impacting loan growth.
- Sensitivity to rate cuts and deposit repricing.
- Integration and expense management related to acquisitions.

[Final Takeaway]
Hancock Whitney demonstrated strong performance in Q2 2025, with notable loan growth and strategic expansion through the Sable Trust acquisition. Management remains confident in achieving modest NIM expansion and continued fee income strength in the second half of 2025. The focus on organic growth, efficiency, and strategic hiring positions the company well for future growth, despite potential macroeconomic challenges. Investors should monitor the impact of rate cuts and deposit repricing on overall performance.