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Results were supported by higher net interest income (NII) and modest loan growth. However, the quarter was significantly impacted by a securities portfolio restructuring loss. Deposits also declined modestly. Additionally, higher expenses and increased provisions acted as headwinds.
Results excluded a one-time charge related to a net loss on the securities portfolio restructure. After considering this, net income was $47.4 million, down 60.3% from the prior-year quarter. Our estimate for the metric was $117.8 million and did not include this one-time charge.
HWC’s Revenues Decline, Expenses Rise
Quarterly total revenues were $292.6 million, which missed the Zacks Consensus Estimate of $389 million. The top line also declined 19.8% year over year.
NII (on a tax-equivalent basis) increased 5.4% year over year to $287.6 million. The net interest margin (NIM) was 3.55%, which expanded 12 basis points (bps). Our estimates for NII and NIM were $285 million and 3.47%, respectively.
Non-interest income was $7.5 million, plunging 92.1% year over year. The decline was primarily due to a net loss on securities transactions. Excluding this, adjusted non-interest income of $106.1 million grew almost 12%. We had projected non-interest income of $103.9 million.
Total non-interest expenses (GAAP) increased 7.7% to $220.7 million. We had projected expenses of $221.4 million. The efficiency ratio increased to 55.43% from 55.22% in the year-ago quarter. An increase in the efficiency ratio indicates a decrease in profitability.
HWC’s Loans Rise & Deposits Decline Sequentially
As of March 31, 2026, total loans were $24 billion, up marginally from the prior quarter. Total deposits were $29 billion, slightly down from the previous quarter. Our estimates for total loans and deposits were $24.2 billion and $29.3 billion, respectively.
HWC’s Credit Quality Deteriorates
The provision for credit losses was $13.2 million, up 25.9% from the prior-year quarter. Our estimate for provisions was $16.6 million.
Net charge-offs (annualized) were 0.19% of average total loans, up 1 bp from the prior-year quarter.
HWC’s Capital Ratios & Profitability Ratios Decline
As of March 31, 2026, the Tier 1 leverage ratio was 10.89%, down from 11.55% at the end of the year-ago quarter. The common equity Tier 1 ratio was 13.30%, down from 14.48% as of March 31, 2025.
At the end of the first quarter of 2026, the return on average assets was 0.54%, down from 1.41% in the year-ago period. The return on average common equity was 4.31%, down from 11.59% in the prior-year quarter.
HWC’s Share Repurchase Update
In the reported quarter, HWC repurchased 1.4 million shares at an average price of $67.55 per share.
Our View on Hancock Whitney
Hancock Whitney’s strategic expansion initiatives and steady loan growth are likely to support top-line growth. Additionally, bond restructuring efforts and stabilizing funding costs are expected to support NII and NIM expansion. However, weakening asset quality, elevated expenses and volatility in non-interest income remain key challenges.
Hancock Whitney Corporation Price, Consensus and EPS Surprise
WaFd, Inc.’s (WAFD - Free Report) second-quarter fiscal 2026 (ended March 31) adjusted earnings of 83 cents per share beat the Zacks Consensus Estimate of 74 cents. The bottom line also jumped 27.7% year over year.
WAFD’s results reflected higher NII and non-interest income. However, elevated expenses and provisions were the undermining factors. A decline in loans and deposits was another headwind.
An Upcoming Bank Release
Huntington Bancshares Inc. (HBAN - Free Report) is scheduled to report first-quarter 2026 results on April 23.
Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has remained unchanged at 36 cents per share. This implies 5.9% growth from the prior-year quarter.
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HWC Q1 Earnings Top Estimates on Higher NII, Expenses Rise Y/Y
Key Takeaways
Hancock Whitney Corp.’s (HWC - Free Report) first-quarter 2026 adjusted earnings per share of $1.52 beat the Zacks Consensus Estimate of $1.48. Further, the bottom line rose 10.1% from the prior-year quarter.
Results were supported by higher net interest income (NII) and modest loan growth. However, the quarter was significantly impacted by a securities portfolio restructuring loss. Deposits also declined modestly. Additionally, higher expenses and increased provisions acted as headwinds.
Results excluded a one-time charge related to a net loss on the securities portfolio restructure. After considering this, net income was $47.4 million, down 60.3% from the prior-year quarter. Our estimate for the metric was $117.8 million and did not include this one-time charge.
HWC’s Revenues Decline, Expenses Rise
Quarterly total revenues were $292.6 million, which missed the Zacks Consensus Estimate of $389 million. The top line also declined 19.8% year over year.
NII (on a tax-equivalent basis) increased 5.4% year over year to $287.6 million. The net interest margin (NIM) was 3.55%, which expanded 12 basis points (bps). Our estimates for NII and NIM were $285 million and 3.47%, respectively.
Non-interest income was $7.5 million, plunging 92.1% year over year. The decline was primarily due to a net loss on securities transactions. Excluding this, adjusted non-interest income of $106.1 million grew almost 12%. We had projected non-interest income of $103.9 million.
Total non-interest expenses (GAAP) increased 7.7% to $220.7 million. We had projected expenses of $221.4 million.
The efficiency ratio increased to 55.43% from 55.22% in the year-ago quarter. An increase in the efficiency ratio indicates a decrease in profitability.
HWC’s Loans Rise & Deposits Decline Sequentially
As of March 31, 2026, total loans were $24 billion, up marginally from the prior quarter. Total deposits were $29 billion, slightly down from the previous quarter. Our estimates for total loans and deposits were $24.2 billion and $29.3 billion, respectively.
HWC’s Credit Quality Deteriorates
The provision for credit losses was $13.2 million, up 25.9% from the prior-year quarter. Our estimate for provisions was $16.6 million.
Net charge-offs (annualized) were 0.19% of average total loans, up 1 bp from the prior-year quarter.
HWC’s Capital Ratios & Profitability Ratios Decline
As of March 31, 2026, the Tier 1 leverage ratio was 10.89%, down from 11.55% at the end of the year-ago quarter. The common equity Tier 1 ratio was 13.30%, down from 14.48% as of March 31, 2025.
At the end of the first quarter of 2026, the return on average assets was 0.54%, down from 1.41% in the year-ago period. The return on average common equity was 4.31%, down from 11.59% in the prior-year quarter.
HWC’s Share Repurchase Update
In the reported quarter, HWC repurchased 1.4 million shares at an average price of $67.55 per share.
Our View on Hancock Whitney
Hancock Whitney’s strategic expansion initiatives and steady loan growth are likely to support top-line growth. Additionally, bond restructuring efforts and stabilizing funding costs are expected to support NII and NIM expansion. However, weakening asset quality, elevated expenses and volatility in non-interest income remain key challenges.
Hancock Whitney Corporation Price, Consensus and EPS Surprise
Hancock Whitney Corporation price-consensus-eps-surprise-chart | Hancock Whitney Corporation Quote
Currently, Hancock Whitney carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Another Bank
WaFd, Inc.’s (WAFD - Free Report) second-quarter fiscal 2026 (ended March 31) adjusted earnings of 83 cents per share beat the Zacks Consensus Estimate of 74 cents. The bottom line also jumped 27.7% year over year.
WAFD’s results reflected higher NII and non-interest income. However, elevated expenses and provisions were the undermining factors. A decline in loans and deposits was another headwind.
An Upcoming Bank Release
Huntington Bancshares Inc. (HBAN - Free Report) is scheduled to report first-quarter 2026 results on April 23.
Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has remained unchanged at 36 cents per share. This implies 5.9% growth from the prior-year quarter.