HWC Q4 Earnings Beat Estimates on Fee Income & NII, Shares Dip

Hancock Whitney Corp.’s HWC fourth-quarter 2025 earnings per share of $1.49 beat the Zacks Consensus Estimate by a penny. Further, the bottom line rose 6.4% from the prior year quarter.

Results benefited from an increase in non-interest income and net interest income (NII). Higher loans and deposits were another positive. However, higher expenses alongside increased provisions were headwinds. Given these concerns, shares of HWC slid 3.3% during after-hours trading on Tuesday.

Net income was $125.6 million, up 2.9% from the prior-year quarter. Our estimate for the metric was $121.4 million.

For 2025, earnings of $5.67 per share lagged the Zacks Consensus Estimate of $5.73. However, the figure grew 7.4% from the previous year. Net income was $486.1 million, rising 5.5% from 2024.

HWC’s Revenues Rise, Expenses Up

Quarterly total revenues were $389.3 million, in line with the Zacks Consensus Estimate. The top line grew 6.7% year over year. 

For 2025, revenues increased 4.8% to $1.52 billion. The top line was in line with the Zacks Consensus Estimate. 

NII (on a tax-equivalent basis) increased 3% year over year to $284.7 million. The net interest margin (NIM) was 3.48%, which expanded 7 basis points (bps). Our estimates for NII and NIM were $291.3 million and 3.56%, respectively.

Non-interest income totaled $107.1 million, up 17.5%. The rise was driven by an increase in all components. We had projected non-interest income of $99.7 million.

Total non-interest expenses (GAAP) increased 7.7% to $217.9 million. We had projected expenses of $215.6 million.
 
The efficiency ratio increased to 54.93% from 54.46% in the year-ago quarter. An increase in the efficiency ratio indicates a decrease in profitability.

HWC’s Loans & Deposits Rise

As of Dec. 31, 2025, total loans were $24 billion, up 1.5% from the prior quarter. Total deposits were $29.3 billion, rising 2.2% on a sequential basis. Our estimates for total loans and deposits were $24 billion and $30 billion, respectively.

HWC’s Credit Quality Deteriorates

The provision for credit losses was $13.1 million, up 10.4% from the prior-year quarter. Our estimate for provisions was $20 million.

Net charge-offs (annualized) were 0.22% of average total loans, up 2 bps from the prior-year quarter.

HWC’s Capital Ratios Decline, Profitability Ratios Mixed

As of Dec. 31, 2025, the Tier 1 leverage ratio was 11.17%, down from 11.29% at the end of the year-ago quarter. The common equity Tier 1 ratio was 13.66%, down from 14.14% as of Dec. 31, 2024.

At the end of the fourth quarter of 2025, the return on average assets was 1.41%, up from 1.40% in the year-ago period. The return on average common equity was 11.28%, down from 11.74% in the prior-year quarter.

HWC’s Share Repurchase Update

In the reported quarter, HWC repurchased 2.5 million shares at an average price of $57.62 per share.

Our View on Hancock Whitney

Hancock Whitney’s strategic expansion initiatives and strong loan balance are likely to continue supporting top-line growth. Additionally, bond restructuring efforts and stabilizing funding costs are expected to support NII and NIM expansion. However, weakening asset quality, elevated expenses and subdued mortgage income remain key challenges.
 

Hancock Whitney Corporation Price, Consensus and EPS Surprise

Hancock Whitney Corporation price-consensus-eps-surprise-chart | Hancock Whitney Corporation Quote

Currently, Hancock Whitney carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Another Bank

WaFd, Inc.’s WAFD first-quarter fiscal 2026 (ended Dec. 31) earnings of 79 cents per share beat the Zacks Consensus Estimate of 76 cents. The bottom line also jumped 46% year over year. 

WAFD’s results reflected higher NII, a surge in non-interest income and lower expenses. However, credit costs remained elevated, with provisions for credit losses recorded in the quarter.

An Upcoming Bank Release

Huntington Bancshares Inc. HBAN is scheduled to report fourth-quarter and full-year 2025 results on Jan. 22.

Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has remained unchanged at 39 cents per share. This implies 14.7% growth from the prior-year quarter.

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

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