HWC Q2 Earnings Match as Higher NII, Fee Income Offset Cost Woes

Net income available to common shareholders was $127 million, up 11.8% from the prior-year quarter. Our estimate for the metric was $124.6 million.

HWC’s Revenues Improve, Expenses Rise

Quarterly total revenues were $401.4 million, which surpassed the Zacks Consensus Estimate of $396.4 million. The top line also increased 6.9% year over year. 

NII (on a tax-equivalent basis) increased 5.6% year over year to $295.2 million. The net interest margin (NIM) was 3.56%, which expanded seven basis points (bps). Our estimates for NII and NIM were $291.2 million and 3.57%, respectively.

Non-interest income was $108.4 million, up 10% year over year. The rise was driven by an increase in service charges on deposit accounts, trust fees, bank card and ATM fees, and investment and annuity fees and insurance commissions. We had projected non-interest income of $107.1 million.

Total non-interest expenses (GAAP) increased 4.4% to $225.4 million. We had projected expenses of $227.1 million.

The efficiency ratio increased to 55.31% from 54.91% in the year-ago quarter. An increase in the efficiency ratio indicates a deterioration in profitability.

HWC’s Loans & Deposits Rise Sequentially

As of June 30, 2026, total loans were $24.6 billion, up 2.5% from the prior quarter. Total deposits were $29.6 billion, up 1.9% from the previous quarter. Our estimates for total loans and deposits were $24.5 billion and $29.2 billion, respectively.

HWC’s Credit Quality Improves

The provision for credit losses was $13.8 million, down 7.7% from the prior-year quarter. Our estimate for provisions was $11.4 million.

Net charge-offs (annualized) were 0.16% of average total loans, down 15 bps from the prior-year quarter.

HWC’s Capital Ratios Decline, Profitability Ratios Increase

As of June 30, 2026, the Tier 1 leverage ratio was 10.87%, down from 11.35% at the end of the year-ago quarter. The common equity Tier 1 ratio was 13.18%, down from 13.97% as of June 30, 2025.

At the end of the second quarter of 2026, the return on average assets was 1.42%, up from 1.32% in the year-ago period. The return on average common equity was 11.52%, up from 10.63% in the prior-year quarter.

HWC’s Share Repurchase Update

In the reported quarter, HWC repurchased 712,966 shares at an average price of $68.28 per share.

Our View on Hancock Whitney

In May, Hancock Whitney agreed to acquire OFB Bancshares, Inc. and combine the latter’s local relationships with its broader platform and expanded private banking and fee-income capabilities, supported by the 2025 Sabal Trust acquisition. Together, these actions are expected to support HWC’s top line over time through loan growth, a continued shift toward full-relationship lending and sustained investment in higher-growth markets.

Additionally, the company’s bond restructuring efforts and stabilizing funding costs are expected to continue to support NII expansion. However, weakening asset quality and elevated expenses remain key challenges.

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 Other Banks

Commerce Bancshares Inc.’s CBSH second-quarter 2026 earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.04. The bottom line reflected a rise of 1% from the prior-year quarter.

CBSH’s results primarily benefited from higher NII and a rise in non-interest income. The sequential rise in loan balances acted as a tailwind. However, higher expenses and provisions hurt CBSH’s results to some extent.

F.N.B. Corporation FNB reported second-quarter 2026 earnings of 42 cents per share, which matched the Zacks Consensus Estimate. The bottom line jumped 16.7% year over year.

FNB’s results primarily benefited from higher NII, a rise in non-interest income and lower provisions. Higher average loans and deposits were other positives. However, higher non-interest expenses hurt the results to some extent.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research