Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2025

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present for each of the fair value hierarchy levels the Company’s financial assets and liabilities that are measured at fair value on a recurring basis on the consolidated balance sheets at September 30, 2025 and December 31, 2024:


	September 30, 2025
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets
Available for sale debt securities:
U.S. Treasury and government agency securities	$	—	$	291,993	$	—	$	291,993
Municipal obligations		—		193,133		—		193,133
Corporate debt securities		—		16,590		—		16,590
Residential mortgage-backed securities		—		2,315,510		—		2,315,510
Commercial mortgage-backed securities		—		2,948,416		—		2,948,416
Collateralized mortgage obligations		—		28,028		—		28,028
Total available for sale securities		—		5,793,670		—		5,793,670
Mortgage loans held for sale		—		33,161		—		33,161
Derivative assets (1)		—		68,156		—		68,156
Total recurring fair value measurements - assets	$	—	$	5,894,987	$	—	$	5,894,987
Liabilities
Derivative liabilities (1)	$	—	$	104,727	$	1,855	$	106,582
Total recurring fair value measurements - liabilities	$	—	$	104,727	$	1,855	$	106,582


	December 31, 2024
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets
Available for sale debt securities:
U.S. Treasury and government agency securities	$	—	$	182,282	$	—	$	182,282
Municipal obligations		—		196,330		—		196,330
Corporate debt securities		—		17,616		—		17,616
Residential mortgage-backed securities		—		2,129,051		—		2,129,051
Commercial mortgage-backed securities		—		2,600,965		—		2,600,965
Collateralized mortgage obligations		—		35,247		—		35,247
Total available for sale securities		—		5,161,491		—		5,161,491
Mortgage loans held for sale		—		18,929		—		18,929
Derivative assets (1)		—		73,840		—		73,840
Total recurring fair value measurements - assets	$	—	$	5,254,260	$	—	$	5,254,260
Liabilities
Derivative liabilities (1)	$	—	$	158,534	$	2,089	$	160,623
Total recurring fair value measurements - liabilities	$	—	$	158,534	$	2,089	$	160,623

(1) For further disaggregation of derivative assets and liabilities, see Note 7 - Derivatives.

Consolidated Balance Sheets for Financial Instruments of Material Nature Measured at Fair Value on Recurring Basis

The table below presents a rollforward of the amounts on the consolidated balance sheets for the nine months ended September 30, 2025 and the year ended December 31, 2024 for financial instruments of a material nature that are classified within level 3 of the fair value hierarchy and are measured at fair value on a recurring basis:


($ in thousands)
Balance at December 31, 2023	$	1,342
Cash settlement		(1,442	)
Losses included in earnings		2,189
Balance at December 31, 2024		2,089
Cash settlement		(1,082	)
Losses included in earnings		848
Balance at September 30, 2025	$	1,855

Overview of the Valuation Techniques and Significant Unobservable Inputs

The table below provides an overview of the valuation techniques and significant unobservable inputs used in those techniques to measure the financial instrument measured on a recurring basis and classified within level 3 of the valuation. The range of sensitivities that management utilized in its fair value calculations is deemed acceptable in the industry with respect to the identified financial instrument.


($ in thousands)
		Fair Value
Level 3 Class		September 30, 2025			December 31, 2024
Derivative liability	$		1,855	$	2,089
Valuation technique		Discounted cash flow			Discounted cash flow
Unobservable inputs:
Visa Class A appreciation - range		6-12%			6-12%
Visa Class A appreciation - weighted average		9%			9%
Conversion rate - range		1.60x-1.56x			1.60x-1.56x
Conversion rate -weighted average		1.5800x			1.5800x
Time until resolution		24-36 months			33-45 months

Financial Assets Measured at Fair Value on Nonrecurring Basis

The following tables present the Company’s financial assets that are measured at fair value on a nonrecurring basis for each of the fair value hierarchy levels.


	September 30, 2025
($ in thousands)	Level 1		Level 2		Level 3		Total
Collateral-dependent loans individually evaluated for credit loss	$	—	$	—	$	53,172	$	53,172
Other real estate owned and foreclosed assets, net		—		—		11,140		11,140
Total nonrecurring fair value measurements	$	—	$	—	$	64,312	$	64,312


	December 31, 2024
($ in thousands)	Level 1		Level 2		Level 3		Total
Collateral-dependent loans individually evaluated for credit loss	$	—	$	—	$	28,301	$	28,301
Other real estate owned and foreclosed assets, net		—		—		27,797		27,797
Total nonrecurring fair value measurements	$	—	$	—	$	56,098	$	56,098

Estimated Fair Values of Financial Instruments

The following tables present the estimated fair values of the Company’s financial instruments by fair value hierarchy levels and the corresponding carrying amounts.


	September 30, 2025
							Total Fair		Carrying
($ in thousands)	Level 1		Level 2		Level 3		Value		Amount
Financial assets:
Cash, interest-bearing bank deposits, and federal funds sold	$	1,425,650	$	246	$	—	$	1,425,896	$	1,425,896
Available for sale securities		—		5,793,670		—		5,793,670		5,793,670
Held to maturity securities		—		2,064,591		—		2,064,591		2,197,611
Loans, net		—		—		23,186,462		23,186,462		23,282,929
Loans held for sale		—		33,161		—		33,161		33,161
Derivative financial instruments		—		68,156		—		68,156		68,156
Financial liabilities:
Deposits	$	—	$	—	$	28,653,441	$	28,653,441	$	28,659,750
Federal funds purchased		—		300		—		300		300
Securities sold under agreements to repurchase		—		616,220		—		616,220		616,220
FHLB short-term borrowings		—		1,275,047		—		1,275,047		1,275,000
Long-term debt		—		176,174		—		176,174		210,657
Derivative financial instruments		—		104,727		1,855		106,582		106,582


	December 31, 2024
($ in thousands)	Level 1		Level 2		Level 3		Total Fair Value		Carrying Amount
Financial assets:
Cash, interest-bearing bank deposits, and federal funds sold	$	1,514,216	$	409	$	—	$	1,514,625	$	1,514,625
Available for sale securities		—		5,161,491		—		5,161,491		5,161,491
Held to maturity securities		—		2,233,526		—		2,233,526		2,435,663
Loans, net		—		—		22,562,577		22,562,577		22,980,565
Loans held for sale		—		21,525		—		21,525		21,525
Derivative financial instruments		—		73,840		—		73,840		73,840
Financial liabilities:
Deposits	$	—	$	—	$	29,482,628	$	29,482,628	$	29,492,851
Federal funds purchased		—		300		—		300		300
Securities sold under agreements to repurchase		—		638,715		—		638,715		638,715
Long-term debt		—		174,660		—		174,660		210,544
Derivative financial instruments		—		158,534		2,089		160,623		160,623

HANCOCK WHITNEY CORP 10-Q