HWC — Hancock Whitney Corporation

Summary of Hancock Whitney Corporation (HWC) 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, slightly down from $126 million in Q4 2025.
• Loan Growth: Increased by $33 million (1% annualized); total loan production was $1.2 billion.
• Deposits: Decreased by $198 million (3% annualized), primarily due to seasonal public fund outflows.
• Common Equity Tier 1 Ratio: 13.3%, with a Tangible Common Equity (TCE) ratio of 9.93%.

2. Strategic Updates and Business Highlights

• Welcomed 27 net new revenue producers, enhancing the banking team's capacity for growth.
• Continued focus on managing expenses with a controlled efficiency ratio of approximately 55%.
• Successful bond portfolio restructuring completed in January, contributing positively to NIM.
• Strong performance in fee income, particularly in treasury and business service charges, which supports overall growth.

3. Forward Guidance and Outlook

• Loan Growth Guidance: Anticipated mid-single-digit growth for the year, with expectations for improvement in the latter half of 2026.
• Deposit Growth Guidance: Expected to increase low single digits from 2025 levels.
• NIM Guidance: Anticipated to expand by 12 to 15 basis points for the year, with potential for upside.
• Fee Income Growth: Projected growth of 4% to 5% for the full year, with a bias towards the upper end of this range.

4. Challenges and Points of Concern

• Loan Growth: First quarter growth was modest, primarily impacted by seasonal factors and higher-than-expected paydowns. The company expressed the need for stronger production to meet growth targets.
• Deposit Outflows: Significant decrease in interest-bearing public funds and seasonal outflows could impact liquidity.
• Market Volatility: Ongoing geopolitical tensions and rising operating costs may affect client sentiment and investment decisions.
• Competitive Pressures: Maintaining loan yields amidst competitive pricing pressures remains a concern.

5. Notable Q&A Insights

• Loan Growth Expectations: Management expressed confidence in achieving mid-single-digit loan growth, citing a strong pipeline and new banker productivity.
• Capital Management: The company plans to continue share repurchases and has increased its quarterly dividend by 11%. Capital ratios remain strong, but future buyback strategies will depend on market conditions and balance sheet growth.
• Fee Income Drivers: The company highlighted the unpredictability of specialty income but remains optimistic about growth in wealth management and treasury services.
• Impact of Geopolitical Events: While there is cautious optimism among clients, management is monitoring the potential impact of rising oil prices and labor costs on investment sentiment.

Overall, Hancock Whitney Corporation reported solid financial performance in Q1 2026, with a focus on strategic growth through new hires and capital management, despite facing challenges in loan growth and deposit outflows.