Hancock Whitney (HWC) Up 2.2% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Hancock Whitney (HWC). Shares have added about 2.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Hancock Whitney due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Hancock Whitney Q4 Earnings Beat Estimates on Fee Income & NII

Hancock Whitney’s 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. Higher loans and deposits were another positive. However, higher expenses alongside increased provisions were headwinds.

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.

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. 

Quarterly NII (on a tax-equivalent basis) increased 3% year over year to $284.7 million. The net interest margin 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.

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.

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.

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.

Share Repurchase Update

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

2026 Outlook (Includes the impact of the bond portfolio restructuring)

Management expects period-end loans to be up mid-single-digits on a year-over-year basis.

Deposit balances are anticipated to be up in the low single-digit range from the previous year.

Management expects cost of deposits (CDs) to continue to mature and renew at lower rates in the year, which will support improvement in CDs.

NII (TE) is projected to increase 5-6% year over year. Further, modest NIM expansion is expected in the year (assuming two 25-bps rate cuts in April and July 2026).

Adjusted pre-provision net revenues (PPNR) are expected to rise 4.5-5.5% from 2025.

Noninterest income is expected to increase 4-5% year over year, with a continued focus on core deposit account growth that often delivers multiple categories of fees.

Adjusted non-interest expenses are expected to rise 5-6% from 2025. This includes the impact from organic growth initiatives of 135 bps and the impact from one full year of expenses related to Sabal Trust acquisition of 50 bps.

Management expects to maintain an efficiency ratio in the range of 54-55%.

The company expects an effective tax rate of 20-21%.

NCOs to average loans are expected to be in the 15-25 bps range.

The bond portfolio restructuring that the company completed in the first two weeks of January 2026 is expected to support NII growth by $24 million, NIM by 7 bps and earnings by 23 cents per share, on an annual basis.

Corporate Strategic Objectives (To be achieved by the fourth quarter of 2028)

Management expects adjusted return on assets to be greater than or equal to 1.50%.

The tangible common equity is expected between 9-9.5%.

The adjusted return on tangible common equity is expected to be more than or equal to 15%.

Management aims for the efficiency ratio to be less than or equal to 55%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

VGM Scores

At this time, Hancock Whitney has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Hancock Whitney has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Hancock Whitney is part of the Zacks Banks - Southeast industry. Over the past month, Regions Financial (RF), a stock from the same industry, has gained 4.9%. The company reported its results for the quarter ended December 2025 more than a month ago.

Regions Financial reported revenues of $1.92 billion in the last reported quarter, representing a year-over-year change of +5.8%. EPS of $0.57 for the same period compares with $0.59 a year ago.

Regions Financial is expected to post earnings of $0.61 per share for the current quarter, representing a year-over-year change of +13%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.1%.

Regions Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.

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

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