Hancock Whitney Corporation Quarterly Report (Form 10-Q)
Hancock Whitney Corporation Quarterly Report (Form 10-Q)
Hancock Whitney Corporation, a financial holding company, reported its quarterly financial results for the period ended June 30, 2026. The company’s net income was $123.1 million, a decrease of 12.1% compared to the same period last year. Total assets increased by 4.3% to $24.6 billion, driven by growth in loans and investments. The company’s allowance for credit losses (ACL) was $243.1 million, representing 0.99% of total loans and leases. The ACL was 1.14% of total loans and leases at June 30, 2025. The company’s common stock outstanding was 80,223,058 shares as of July 31, 2026. The report also includes the company’s consolidated balance sheets, statements of income, comprehensive income, changes in stockholders’ equity, and cash flows, as well as notes to the consolidated financial statements.
Overview
Hancock Whitney Corporation, a regional bank holding company, has reported its financial results for the second quarter of 2026. The company saw strong performance, profitability and enhanced shareholder value during the quarter.
Net income for the second quarter was $127.0 million, or $1.55 per diluted share, compared to $47.4 million, or $0.57 per diluted share, in the first quarter of 2026. The first quarter included a $98.6 million pre-tax loss from restructuring the bank’s securities portfolio.
Revenue and Profit Trends
Net interest income, which is the difference between interest earned on loans and investments and interest paid on deposits and borrowings, increased 3% from the first quarter to $295.2 million. This was driven by loan growth, higher securities yields from the portfolio restructuring, and lower deposit costs. The net interest margin, a key profitability metric, increased to 3.56%.
Noninterest income, which includes fees and other revenue from services, increased $100.9 million from the first quarter, excluding the securities restructuring loss. Growth came from higher trust fees, investment and annuity fees, and bank card and ATM fees.
The provision for credit losses, which covers potential loan losses, was $13.8 million, up slightly from the prior quarter. Net charge-offs, or loans written off, were 0.16% of average loans, down from 0.19% in the first quarter, indicating stable credit quality.
Noninterest expense, which covers operating costs, increased 2% from the prior quarter to $225.4 million, driven by higher personnel, occupancy, and professional services costs. However, the efficiency ratio, which measures expenses relative to revenue, improved to 55.31%.
Overall, the strong revenue growth and controlled expenses led to a 168% increase in net income compared to the first quarter.
Strengths and Weaknesses
A key strength of Hancock Whitney is its diversified loan portfolio, with the largest concentrations in commercial and industrial lending, commercial real estate, and residential mortgages. The bank has been able to grow loans, with total loans up 2% from the prior quarter and 3% from year-end 2025.
Deposit growth has also been solid, with total deposits up 2% from the prior quarter and 1% from year-end. The bank has maintained a favorable deposit mix, with 95.5% of deposits considered “core” deposits from consumer and commercial customers, versus more volatile wholesale funding sources.
Credit quality remains strong, with nonaccrual loans at 0.46% of total loans and the allowance for credit losses covering 1.42% of loans. Net charge-offs have been low at 0.16% of average loans in the second quarter.
A potential weakness is the bank’s reliance on net interest income, which accounted for 73% of total revenue in the second quarter. This exposes the bank to interest rate risk if rates were to rise or fall sharply. The bank has taken steps to manage this risk, such as restructuring its securities portfolio.
Another potential weakness is the bank’s geographic concentration in the Southeast, which could make it vulnerable to regional economic downturns. However, the bank’s diverse loan portfolio and customer base help mitigate this risk.
Outlook
Looking ahead, Hancock Whitney’s acquisition of One Florida Bank, completed on August 1, 2026, is expected to enhance the bank’s presence in the high-growth Orlando market and be immediately accretive to earnings.
The bank’s economic outlook is cautiously optimistic, with the baseline forecast calling for GDP growth of 2.1% in 2026 and 1.9% in 2027. However, there are downside risks related to the ongoing U.S.-Iran conflict, elevated inflation, and the potential for a mild recession.
To address these risks, the bank has weighted its allowance for credit losses calculation equally between the baseline forecast and a more pessimistic downside scenario. The bank is closely monitoring its loan portfolio for any signs of stress from factors like inflation and rising interest rates.
Overall, Hancock Whitney appears well-positioned to navigate the current economic environment. Its solid balance sheet, diverse business mix, and disciplined execution should allow it to continue delivering value to shareholders.