HWC — Hancock Whitney Corporation

Summary of Hancock Whitney Corporation Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Adjusted Return on Assets (ROA): 1.43%
• Return on Tangible Common Equity (ROTCE): 14.64%
• Earnings Per Share (EPS): $1.52, up over 10% year-over-year.
• Net Interest Margin (NIM): Expanded by 7 basis points to 3.55%.
• Net Income: $125 million, adjusted for bond portfolio restructuring losses.
• Loan Growth: Increased by $33 million (1% annualized), with total loan production at $1.2 billion, up $365 million year-over-year.
• Deposits: Decreased by $198 million (3% annualized), primarily due to seasonal public fund outflows.

2. Strategic Updates and Business Highlights

• New Hires: Welcomed 27 net new revenue producers, focusing on business banking, commercial, and middle-market segments.
• Capital Management: Returned capital to shareholders through the repurchase of 1.4 million shares and an 11% increase in quarterly cash dividend to $0.50 per share.
• Bond Portfolio Restructuring: Completed in January, contributing positively to NIM and expected to enhance bond yields further throughout the year.
• Fee Income: Strong performance in treasury services and business banking, with expectations for continued growth in wealth management.

3. Forward Guidance and Outlook

• Loan Growth Guidance: Maintained at mid-single digits for 2026, with expectations for improved growth in the latter half of the year.
• Deposit Growth: Anticipated to be up low single digits from 2025 levels.
• NIM Guidance: Expected to achieve a year-over-year increase of 12 to 15 basis points, with potential upside.
• Net Charge-Offs: Expected to average between 15 to 25 basis points for the full year.

4. Bad News, Challenges, or Points of Concern

• Loan Growth Challenges: First-quarter loan growth was impacted by seasonal factors and higher-than-expected paydowns, raising concerns about sustaining growth momentum.
• Deposit Declines: Notable decrease in deposits due to public fund outflows, although underlying DDA growth was positive when excluding these factors.
• Market Volatility: Ongoing geopolitical tensions and rising operating costs may affect client investment sentiment and overall economic conditions.

5. Notable Q&A Insights

• Loan Growth Confidence: Management expressed confidence in achieving loan growth targets, citing strong pipelines and the impact of new hires.
• Net Interest Margin Dynamics: Future NIM improvements are expected to come primarily from bond yield increases and lower deposit costs, with loan yields remaining stable amidst competitive pressures.
• Fee Income Variability: Specialty income remains unpredictable, with potential volatility in syndication and SBA fees affecting overall fee income growth.
• Capital Management Flexibility: Management indicated a strategic approach to share repurchases, balancing between buybacks and organic growth opportunities.

Overall, Hancock Whitney Corporation reported solid financial performance in Q1 2026, with strategic initiatives aimed at enhancing growth and profitability, despite facing challenges in loan growth and deposit levels. The outlook remains cautiously optimistic with a focus on leveraging new hires and improving operational efficiencies.