Hancock Whitney Corporation (HWC) Earnings & Analysis

Latest quarter

Hancock Whitney reported Q2 FY2026 revenue of $521.2 million, up from $501.1 million a year earlier, and diluted EPS of $1.55, compared with $1.32. For the subsequent quarter, its revenue of $420.1 million beat the consensus of $418.9 million, while adjusted EPS of $1.66 beat the $1.65 consensus.

The filing reported Q2 net income of $127.0 million, compared with $113.5 million a year earlier. Gross margin rose to 77.0% from 74.9%, while operating margin rose to 31.1% from 28.9%. Hancock Whitney reported free cash flow of $150.4 million, compared with $122.0 million a year earlier.

For the first six months, the filing attributed higher trust fees partly to a full-period contribution from the Sabal acquisition and growth in its existing business. In Q2, net interest income increased from the preceding quarter, which the filing attributed primarily to loan growth, an additional accrual day and the full-quarter effect of the securities portfolio restructuring. The filing reported a $13.8 million provision for credit losses in Q2, including net charge-offs of $9.4 million and a reserve build of $4.4 million.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On the available Q1 earnings call, CEO John Hairston said Hancock Whitney had added 27 net new revenue producers and expected average loan growth to improve as the year progressed. He said loan production was up from a year earlier, although it fell from the preceding quarter, and pointed to the pipeline and banker hiring as sources of future growth.

Hairston attributed the Q1 deposit decline to seasonal public funds outflows. He said interest-bearing transaction and savings balances rose, while retail time deposits fell as they matured.

CFO Michael Achary said the Q1 net interest margin expanded as deposit costs fell and the restructured bond portfolio earned a higher yield, partly offsetting lower loan yields. He said the transaction contributed 4 basis points to margin expansion in the quarter, which did not include its full effect. Achary also said the bank had reduced promotional rates on interest-bearing transaction accounts and retail CDs, and expected maturing CDs to renew at lower rates during 2026.

Asked about margin expansion, Achary said the outlook depended on loan growth, the bond portfolio’s contribution and lower deposit costs. He said competition remained a consideration for loan pricing, but that loan growth and changes in the loan mix could help keep the portfolio yield roughly where it was.

In response to questions about revenue and expenses, Achary said earlier hiring could put expenses toward the upper end of the guidance range. He also said specialty income, including syndication fees, mortality gains, derivative fees and SBIC income, could vary from quarter to quarter.

On capital, Achary said organic balance-sheet growth was the bank’s first priority. He said share repurchases were expected to continue at similar levels through the year, subject to changes in balance-sheet growth, economic conditions and share valuation.

Guidance

On the Q1 call, CFO Michael Achary said Hancock Whitney had not changed its guidance but was now assuming no rate cuts throughout 2026, with no significant impact on net interest income or net interest margin.