Finance

Hancock Whitney Loan Growth Re-Accelerates After a Slow Start

The Tip Desk · July 22, 2026 · 4 min read

Second-quarter loans rose 10% linked-quarter annualized to $24.6 billion, reversing a 1% pace in the first quarter, as deposits also turned higher.

Hancock Whitney Corporation (HWC) reported second-quarter 2026 net income of $127.0 million, or $1.55 a share, after a first quarter in which a $98.6 million securities-restructure loss cut earnings to $0.57 a share.

The more consequential turn was on the balance sheet. Period-end loans reached $24.6 billion, up $588.3 million, or 10% linked-quarter annualized, after a $33.4 million, or 1% LQA, increase in the first quarter of 2026. Growth was driven primarily by C&I lending, healthcare activity, and commercial real estate. Average loans were $24.3 billion, up $373.9 million, or 2%, from the first quarter.

Deposits reversed a first-quarter decline. Total deposits were $29.6 billion at June 30, 2026, up $547.6 million, or 8% LQA, after a $197.6 million decrease in the prior quarter. Interest-bearing transaction and savings deposits totaled $13.0 billion, up $785.0 million, or 6%, due to competitive products and pricing. Retail time deposits of $3.4 billion were down $172.4 million, or 5%, on maturities and repricing, and interest-bearing public fund deposits fell $56.9 million, or 2%, on seasonal outflows. Noninterest-bearing deposits were $10.3 billion, virtually unchanged, and 35% of period-end deposits. Average deposits were $28.8 billion, down $53.8 million, or less than 1%, linked-quarter.

Net interest income (TE) was $295.2 million, up $7.7 million, or 3%, from the first quarter. The net interest margin (TE) was 3.56%, up 1 bp linked-quarter, after a 7 bp expansion to 3.55% in the first quarter. The second-quarter move reflected higher investment portfolio yield (+2 bps) and lower cost of deposits (+3 bps), partially offset by unfavorable borrowing costs (-3 bps) and lower loan yields (-1 bp). Average earning assets were $33.2 billion.

Noninterest income was $108.4 million. The first quarter had included the $98.6 million securities-restructure loss; there were no supplemental disclosure items in the second quarter. Investment and annuity income and insurance fees were $14.6 million, up $2.0 million, or 16%, on seasonally higher activity. Trust fees were $26.0 million, up $1.5 million, or 6%, on annual collection of tax preparation fees. Bank card and ATM fees were $23.2 million, up $1.1 million, or 5%. Service charges on deposit accounts were $25.9 million, unchanged. Secondary mortgage operations fees were $4.1 million, up $0.5 million, or 15%. Other noninterest income was $14.5 million, down $2.8 million, or 16%, on lower syndication fees and lower SBIC income.

Noninterest expense was $225.4 million, up $4.7 million, or 2%, linked-quarter. Personnel expense was $130.2 million, up $3.0 million, or 2%, due to annual merit increases and new hires. The efficiency ratio was 55.31%.

Credit quality improved on criticized loans. Criticized commercial loans were $492.0 million, or 2.55% of total commercial loans, down $30.2 million from $522.2 million, or 2.79%, at March 31. Nonaccrual loans were $113.7 million, or 0.46% of total loans. The allowance for credit losses was $348.0 million, or 1.42% of period-end loans. Net charge-offs were $9.4 million, or 0.16% of average loans annualized, compared with $11.1 million, or 0.19%, in the first quarter. The provision was $13.8 million.

Capital ratios eased with the larger balance sheet. CET1 was estimated at 13.18%, down 11 bps linked-quarter, after a 35 bp decline to 13.30% in the first quarter. TCE was 9.78%, down 15 bps. Total risk-based capital was estimated at 14.97%, down 13 bps. The company repurchased 712,966 shares at an average price of $68.28. The cash dividend remained $0.50 a share.

President and CEO John M. Hairston said the quarter reflected another period of strong performance and that the team hired 15 net new bankers. The company announced the acquisition of One Florida Bank and said it expects to close on August 1.

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