HWC — Hancock Whitney Corporation

Hancock Whitney Corporation (HWC) Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Net Income: $127 million, or $1.55 per share, up from $125 million, or $1.52 per share in Q1 2026.
• Pre-Provision Net Revenue (PPNR): Increased by 3% to $178 million.
• Return on Average Assets (ROA): 1.99%.
• Net Interest Margin (NIM): Slightly improved to 3.56%, up 1 basis point from the previous quarter.
• Loan Growth: 5% year-over-year; 10% annualized growth linked quarter.
• Deposit Growth: 2% year-over-year; 8% annualized growth linked quarter.
• Efficiency Ratio: 55.3%.
• Return on Tangible Common Equity (ROTCE): 14.9%.

2. Strategic Updates and Business Highlights

• Banker Recruitment: Added 15 net new bankers in Q2, totaling 42 for the year against a goal of 50.
• Acquisition: Received regulatory and shareholder approval for the acquisition of 1 Florida Bank, expected to close on August 1, 2026.
• Wealth Management: Continued strong performance in investment and annuity income, contributing to fee income growth.
• Cost Management: Expenses were well-controlled, primarily due to merit increases and the impact of new hires.

3. Forward Guidance and Outlook

• Loan Growth: Maintained guidance for mid-single-digit growth for the full year.
• Deposit Growth: Updated guidance to low to mid-single-digit growth for the year.
• Net Interest Income: Expected to grow by 8-9% in the second half of 2026, with fee income projected to increase by 6-7%.
• Operational Expenses: Anticipated to rise by 7.5-8.5% due to ongoing hiring and merit increases.
• PPNR Growth: Expected to increase by 7-8% in the second half of 2026.

4. Bad News, Challenges, or Points of Concern

• Loan Competition: Increased competition for loans is leading to pressure on pricing, with a cautious outlook from clients despite solid production.
• Deposit Pricing: The deposit pricing environment remains competitive, with expectations for rising costs as promotional rates are introduced.
• Asset Quality: Nonaccrual loans increased slightly, and while criticized loans improved, there is a cautious outlook on potential macroeconomic impacts.
• Economic Environment: The evolving economic landscape poses risks, including potential rate increases and inflation, which could dampen loan demand.

5. Notable Q&A Insights

• Loan Growth Outlook: Management indicated that while Q2 saw strong production, they expect a more conservative outlook for the second half due to macroeconomic conditions.
• Deposit Competition: The deposit market is competitive but rational, with efforts to match deposit growth with loan growth dollar-for-dollar.
• Noninterest Income: Increased expectations for noninterest income driven by strong performance in wealth management and trust services.
• Hiring Strategy: The company is on track to meet its hiring goals, with new hires contributing significantly to growth, but management is cautious about adding beyond current targets to maintain efficiency.
• M&A Considerations: The successful acquisition of 1 Florida Bank may open doors for future M&A opportunities, though the immediate focus remains on integration.

This summary encapsulates the key points from Hancock Whitney Corporation's Q2 2026 earnings call, highlighting financial performance, strategic initiatives, guidance, challenges, and insights from the Q&A session.