Hancock Whitney Corp. Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Hancock Whitney Corporation is a financial holding company operating primarily through its subsidiary, Hancock Whitney Bank, serving markets in Mississippi, Alabama, Louisiana, Florida, Texas, Tennessee, and Georgia. The company reported 81.2 million common shares outstanding as of April 30, 2026.
Key Financial Metrics
- Net Income: $47.4 million ($0.57 per diluted share), down significantly from $119.5 million in Q1 2025.
- Net Interest Income (TE): $287.6 million, up 1% from Q4 2025 and 5% from Q1 2025.
- Net Interest Margin (TE): 3.55%, an increase of 7 basis points from the prior quarter.
- Provision for Credit Losses: $13.2 million.
- Noninterest Income: $7.5 million (GAAP), heavily impacted by a $98.6 million pre-tax loss on securities restructuring. Adjusted noninterest income was $106.1 million.
- Noninterest Expense: $220.7 million.
- Total Assets: $35.5 billion.
- Total Loans: $24.0 billion.
- Total Deposits: $29.1 billion.
- Allowance for Credit Losses: $343.7 million (1.43% of total loans).
- Capital Ratios: Tangible Common Equity (TCE) ratio of 9.93%; Common Equity Tier 1 (CET1) ratio of 13.29%.
Material Changes vs. Prior Period
- Securities Portfolio Restructuring: In January 2026, the company sold $1.5 billion of lower-yielding securities and reinvested proceeds into higher-yielding instruments. This resulted in a $98.6 million pre-tax realized loss, which was the primary driver of the decline in net income compared to Q1 2025.
- Share Repurchases: The company repurchased 1.4 million shares at an average cost of $67.58 per share under a new program authorized in December 2025.
- Dividend Increase: The quarterly dividend was increased by 11% to $0.50 per share.
- Loan Growth: Total loans increased slightly by $33.4 million (less than 1%) from the prior quarter, driven by commercial real estate growth.
- Deposit Trends: Total deposits decreased by $197.6 million (1%) from the prior quarter, primarily due to seasonal movements in public funds.
Outlook, Risks, and Management Commentary
- Economic Outlook: Management utilizes Moody's forecasts, weighting a baseline scenario at 40% and a downside "mild recession" scenario (S-2) at 60% for credit loss modeling. The S-2 scenario assumes heightened geopolitical conflict, higher tariffs, and elevated oil prices.
- Strategic Impact: The securities restructuring is expected to contribute approximately $23.8 million to annual net interest income, with a payback period of roughly 50 months for the realized loss.
- Key Risks:
- Geopolitical conflicts (specifically in the Middle East) impacting energy prices and supply chains.
- Interest rate volatility and the Federal Reserve's monetary policy actions.
- Credit quality deterioration in commercial real estate and consumer portfolios due to inflation and economic uncertainty.
- FDIC special assessment exposure related to prior bank failures (Silicon Valley Bank and Signature Bank), with $27.6 million expensed to date.
- Liquidity: Total liquidity stands at $19.5 billion, well in excess of estimated uninsured, non-collateralized deposits of $11.4 billion.
Investor Verification Checklist
- Verify the payback timeline for the $98.6 million securities loss against actual net interest income growth in subsequent quarters.
- Monitor the allowance for credit losses coverage ratio (currently 1.43%) given the 60% weighting of the recessionary economic scenario.
- Track deposit beta and cost of funds trends as the company shifts funding mix away from public funds.
- Review the FDIC special assessment liability for potential increases as loss estimates from prior bank failures are finalized.
- Assess the impact of the stock repurchase program (1.4 million shares in Q1) on future earnings per share dilution/accretion.