Hancock Whitney Corp. (HWC) shares tumbled 5.17% in after-hours trading on Tuesday, despite reporting third-quarter earnings that surpassed analyst expectations. The regional bank posted earnings per share (EPS) of $1.49, beating the consensus estimate of $1.43, and reported a net income of $127.5 million, up from $115.6 million in the same quarter last year.

The stark contrast between the positive earnings report and the stock's negative reaction suggests that investors may be focusing on other aspects of the company's financial performance. One potential area of concern could be the bank's credit loss allowance, which stood at -$341.5 million for the quarter. Additionally, while the bank reported a 1% increase in average loans to $23.4 billion, average deposits fell by 1% to $28.5 billion, potentially signaling challenges in maintaining its deposit base in a competitive banking environment.

Despite the after-hours selloff, Hancock Whitney maintained a strong capital position with a Common Equity Tier 1 (CET1) ratio of 14.08%. The bank also provided a cautiously optimistic outlook, projecting low single-digit loan growth for both Q4 and the full year 2025, along with expectations for a low single-digit increase in year-end deposit levels compared to 2024. However, investors may be weighing these projections against broader economic uncertainties and the potential for continued pressure on regional banks' margins in the current interest rate environment.