Hancock Whitney (HWC) Down 0.4% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Hancock Whitney (HWC). Shares have lost about 0.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Hancock Whitney due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Hancock Whitney’s Q2 Earnings Match as Higher NII, Fee Income Offset Cost Woes

Hancock Whitney’s second-quarter 2026 earnings per share of $1.55 matched the Zacks Consensus Estimate. The bottom line rose 17.4% from the prior-year quarter.

Results were supported by higher NII and non-interest income, along with a decline in provisions. Also, a sequential increase in loans and deposit balances was positive. However, higher expenses were the undermining factor.

Net income available to common shareholders was $127 million, up 11.8% from the prior-year quarter. Our estimate for the metric was $124.6 million.

Revenues Improve, Expenses Rise

Quarterly total revenues were $401.4 million, which surpassed the Zacks Consensus Estimate of $396.4 million. The top line also increased 6.9% year over year. 

NII (on a tax-equivalent basis) increased 5.6% year over year to $295.2 million. NIM was 3.56%, which expanded seven basis points (bps). Our estimates for NII and NIM were $291.2 million and 3.57%, respectively.

Non-interest income was $108.4 million, up 10% year over year. The rise was driven by an increase in service charges on deposit accounts, trust fees, bank card and ATM fees, and investment and annuity fees and insurance commissions. We had projected non-interest income of $107.1 million.

Total non-interest expenses (GAAP) increased 4.4% to $225.4 million. We had projected expenses of $227.1 million.

The efficiency ratio increased to 55.31% from 54.91% in the year-ago quarter. An increase in the efficiency ratio indicates a deterioration in profitability.

Loans & Deposits Rise Sequentially

As of June 30, 2026, total loans were $24.6 billion, up 2.5% from the prior quarter. Total deposits were $29.6 billion, up 1.9% from the previous quarter. Our estimates for total loans and deposits were $24.5 billion and $29.2 billion, respectively.

Credit Quality Improves

The provision for credit losses was $13.8 million, down 7.7% from the prior-year quarter. Our estimate for provisions was $11.4 million.

NCOs (annualized) were 0.16% of average total loans, down 15 bps from the prior-year quarter.

Capital Ratios Decline, Profitability Ratios Increase

As of June 30, 2026, the Tier 1 leverage ratio was 10.87%, down from 11.35% at the end of the year-ago quarter. The common equity Tier 1 ratio was 13.18%, down from 13.97% as of June 30, 2025.

At the end of the second quarter of 2026, the return on average assets was 1.42%, up from 1.32% in the year-ago period. The return on average common equity was 11.52%, up from 10.63% in the prior-year quarter.

Share Repurchase Update

In the reported quarter, Hancock Whitney repurchased 712,966 shares at an average price of $68.28 per share.

2026 Outlook (Includes the impact of the OFB Deal)

Management expects period-end loans to be up low-double-digits. Deposit balances are anticipated to be up in the low double-digit range.

NII (TE) is projected to increase 8-9% year over year. Further, flat to modest NIM expansion is expected in the second half of 2026 (assuming no rate cuts).

Adjusted pre-provision net revenues (PPNR) are expected to rise 7-8% from 2025.

Adjusted non-interest income is expected to increase 6-7%.

Adjusted non-interest expenses are expected to rise 7.5-8.5% from 2025. 

Management expects to maintain an efficiency ratio below 55%.

The company expects an effective tax rate of 21-21.5%.

NCOs to average loans are expected to be in the 15-25 bps range.

Corporate Strategic Objectives (To be achieved by the fourth quarter of 2028)

Management expects adjusted return on assets to be greater than or equal to 1.50%.

The tangible common equity is expected between 9-9.5%.

The adjusted return on tangible common equity is expected to be more than or equal to 15%.

Management aims for the efficiency ratio to be less than or equal to 55%.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

Currently, Hancock Whitney has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, Hancock Whitney has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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