Hancock Whitney Corporation Delivers Strong Q1 Performance Amidst Rapidly Evolving Economic Environment
Hancock Whitney Corporation recently reported a solid start to 2026, with the company's President and CEO, John Hairston, highlighting the success in various key areas during the first quarter earnings conference call. The adjusted return on average assets (ROA) was 1.43%, return on tangible common equity (ROTCE) was 14.64%, and earnings per share (EPS) was $1.52, all of which improved from the prior quarter.
Adjusted EPS compared to the same quarter last year increased over 10%. The company also welcomed 27 net new revenue producers to its strong banking team, indicating a robust growth strategy. Hancock Whitney achieved another quarter of solid earnings with net interest margin expansion and an efficiency ratio of about 55%, consistent strong fee income, and well-managed expenses.
The net interest margin expanded 7 basis points this quarter due to higher securities yields following the bond portfolio restructuring and lower cost of funds that outpaced the impacts of lower loan yields in this rate environment. Loans grew $33 million or 1% annualized, with loan production totaling $1.2 billion, down from last quarter but up $365 million compared to the same quarter last year.
Historically, first-quarter loan growth is seasonally softer, but average balances were up $250 million over fourth quarter. The company anticipates average growth to improve as the year progresses with a strong pipeline and continued success in adding bankers. Its guidance of mid-single digits for the year for loan growth remains unchanged.
Deposits were down $198 million or 3% annualized due to seasonal public funds outflows. Interest-bearing public funds decreased $280 million, and public fund DDAs decreased $75 million. However, excluding the impact of public fund DDA outflows, DDAs would actually have been up $45 million. The company enjoys a healthy CD renewal rate of about 85%.
During the quarter, Hancock Whitney continued to return capital to shareholders through repurchasing 1.4 million shares of its common stock and increasing its quarterly cash dividend 11%, now standing at $0.50 per share. Additionally, it deployed capital through a previously announced bond restructuring effort, which was completed in January.
The company ended the quarter with a solid tangible common equity (TCE) of 9.93% and a Common Equity Tier 1 ratio of 13.3%. Despite market volatility and an emerging scenario of flat rates, Hancock Whitney remains optimistic and confident for its growth prospects for the rest of 2026.
The company is closely monitoring macroeconomic trends and indicators, including both nationally and within its footprint. This proactive approach reflects its commitment to prudent risk management and adaptability in a rapidly changing economic environment.
