Hancock Whitney NASDAQ: HWC reported what executives described as another strong quarter of profitability, efficiency and shareholder returns in the second quarter of 2026, while also pointing to stronger balance sheet growth and continued improvement in credit trends.
President and CEO John Hairston said earnings per share improved 13% from the same period a year earlier, while pre-provision net revenue rose 6%. He also highlighted 5% loan growth, 2% total deposit growth and a sixth consecutive quarter of improvement in commercial criticized loans.
“The second quarter of 2026 was another strong quarter of profitability, efficiency, and return of capital to shareholders,” Hairston said. He added that the company was “pleased to add solid balance sheet growth on both sides of the ledger to an already excellent quarter.”
Profitability Remains Strong as Net Interest Income Rises
CFO Mike Achary said net income for the quarter was $127 million, or $1.55 per share, compared with adjusted net income of $125 million, or $1.52 per share, in the first quarter. Pre-provision net revenue increased 3% from the prior quarter to $178 million, which Achary said represented a 1.99% return on average assets.
Net interest income increased 3% from the prior quarter. Hancock Whitney’s net interest margin rose one basis point to 3.56%, as the yield on earning assets increased two basis points and the cost of funds increased one basis point. Achary said the bond portfolio yield rose 12 basis points to 3.35%, reflecting the full-quarter impact of a restructuring transaction completed in the first quarter and reinvestment of principal cash flows.
Loan yields declined two basis points, which Achary attributed mainly to a 12-basis-point quarter-over-quarter drop in new loan rates, partially offset by a $374 million increase in average loans. Deposit costs fell four basis points to 1.43%, mostly because of lower rates on maturing certificates of deposit.
Achary said Hancock Whitney expects deposit costs to increase in the second half of the year, as the benefit from repricing maturing CDs “will largely come to an end.” He said net interest income should continue to grow, though possibly at a slower pace than in the second quarter, and that the margin is expected to be flat to slightly higher.
Loan and Deposit Growth Accelerate
On a linked-quarter annualized basis, Hairston said loans grew 10% and deposits grew 8%. Loan production was strong and line utilization improved, with growth across every business line except mortgage. The company reiterated its full-year loan growth guidance of mid-single digits.
Chief Operating Officer Shane Loper said Hancock Whitney produced $1.5 billion in loans during the quarter, up from $1.2 billion in the first quarter. Loan growth totaled $588 million, with strength across business banking, commercial, middle market, consumer and commercial real estate.
Loper said clients generally remain stable and somewhat optimistic, but cautious. He also said the loan market remains competitive, particularly because “there’s a lot of credit supply for a limited demand.”
Deposit growth was driven by a $786 million increase in interest-bearing money market accounts, partially offset by a slight decline in CD balances from maturities. Hancock Whitney raised its full-year deposit guidance from low single-digit growth to mid-single-digit growth.
Achary said the bank’s goal is to fund loan growth with deposit growth, and he described the deposit pricing environment as competitive but rational in the company’s markets. During the quarter, Hancock Whitney expanded certain promotional deposit offerings, including an 11-month CD at 3.85% in Louisiana, Mississippi and Alabama after previously offering it in Florida and Texas. The company also offered money market promotions at 3.75% for some existing customers and 4% for new customers.
Fee Income, Expenses and Hiring
Fee income increased $2.3 million, or 2%, adjusted for the net loss on the bond portfolio restructuring in the prior quarter. Achary said the increase was driven by higher activity in investment and annuity income, insurance and trust, partly offset by lower syndication fees and Small Business Investment Company income, which he said can be unpredictable from quarter to quarter.
Hairston pointed to wealth management as a notable contributor, citing execution across the broker-dealer and trust platforms, as well as some benefit from the Sabal transaction completed last year. He also said card and merchant services continued to perform well, while secondary mortgage was in line with expectations.
Expenses rose 2% from the prior quarter, primarily because of annual merit increases and the impact of new hires during the first half of 2026. Hairston said Hancock Whitney added 15 net new bankers in the second quarter, bringing the year-to-date total to 42 against its annual goal of 50.
Loper said new bankers accounted for 26% of the quarter’s growth and that the company remains confident in reaching its hiring target. Achary noted that the company increased its operating expense guidance excluding One Florida Bank, partly reflecting the possibility of adding more employees.
Asset Quality Continues to Improve
Hancock Whitney reported continued improvement in criticized commercial loans, which declined $30 million to $492 million. Nonaccrual loans increased $1 million to $114 million. Net charge-offs were 16 basis points, down from 19 basis points in the prior quarter.
Achary said loan loss reserves stood at 1.42% of loans. The company continues to expect net charge-offs to average loans to come in between 15 and 25 basis points for full-year 2026.
In response to an analyst question about changes in CECL assumptions, Achary said the company saw Moody’s baseline scenario become more conservative. He said Hancock Whitney shifted its weighting from 40/60 to 50/50 between the baseline and slow-growth scenarios.
One Florida Deal and Capital Plans
Hairston said Hancock Whitney received regulatory and shareholder approval in July for the One Florida Bank transaction and expects the deal to close on August 1. He said the company updated its guidance to show the fiscal 2026 outlook both excluding and including One Florida.
Including One Florida, Achary said Hancock Whitney expects loans and deposits to be up low double digits, net interest income to rise 8% to 9%, fee income to increase 6% to 7%, operating expenses to rise 7.5% to 8.5%, and pre-provision net revenue to grow 7% to 8%. Those expectations do not include meaningful revenue synergies, such as expanding wealth products and services to One Florida clients. Cost savings are expected to be fully realized by the start of 2027.
Hairston said the immediate focus after closing will be welcoming One Florida clients and employees and completing integration, which he expects in mid- to late fourth quarter. He said the company may provide more detail in 2027 on growth expectations in Orlando and other Florida markets.
On capital deployment, Hairston said Hancock Whitney’s priorities remain supporting balance sheet growth, dividends and completing the current 5% share repurchase authorization by year-end. Achary said the company had about 2 million shares remaining under the authorization and intends to exhaust it over the second half of 2026, likely on a roughly pro rata basis between the third and fourth quarters.
Achary said the company is comfortable with tangible common equity around 9% and common equity Tier 1 capital around 12%. He said future repurchase plans for 2027 will be discussed when the company gets there.
About Hancock Whitney (NASDAQ:HWC)
Hancock Whitney Corporation NASDAQ: HWC is a regional financial services company headquartered in Gulfport, Mississippi. The firm was established in April 2019 through the merger of Hancock Holding Company and Whitney Holding Corporation, each of which traced its roots to the late 19th century. This combination created one of the largest bank holding companies in the Gulf South region, with a network of branches serving both urban and rural communities.
The company's core business activities include commercial banking, retail banking and wealth management services.
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