Hancock Whitney (NASDAQ:HWC) executives highlighted fourth-quarter results they described as a “strong finish” to 2025, while outlining a 2026 plan centered on organic balance sheet growth, incremental hiring of revenue-generating bankers, and a bond portfolio restructuring completed in early January.
Fourth-quarter results and full-year trends
CEO John Hairston said the company delivered year-over-year improvement in earnings per share of 8%, pre-provision net revenue (PP&R) growth of 6%, and a 12% increase in tangible book value per share. He added that the fourth quarter produced an ROA of 1.41% and an efficiency ratio below 55%, while fee income continued to expand and expenses remained “well-managed,” including targeted investments to support revenue-generating activity.
Fee income totaled $107 million in the quarter, with Achary noting growth in each quarter of 2025 and “solid performance across each category,” led in the fourth quarter by higher specialty income. Expenses increased 2% from the prior quarter due largely to investments management expects will enhance revenue generation in 2026. The efficiency ratio was 54.9% for the quarter and 54.8% for the year, improving from 55.4% in 2024, which Achary attributed to net interest income growth, fee income performance, and expense control.
Loan and deposit growth, mix, and funding costs
Hairston said loans grew $362 million, or 6% annualized, with production strength more than offsetting increased prepayments. Management guided to mid-single-digit loan growth in 2026 compared to year-end 2025. Deposits rose $620 million, or 9% annualized, driven largely by seasonal public fund activity and growth in interest-bearing accounts. Management reminded investors that public funds typically flow out in the first quarter.
The company’s deposit mix ended the quarter with DDA at 35%, which Hairston called “strong.” Hancock Whitney expects deposits to increase low single digits from 2025 levels, supported by investments in financial centers and revenue producers.
Achary said margin performance in the fourth quarter reflected lower loan yields—on both new fixed and variable-rate loans and existing variable-rate loans—following two rate cuts during the quarter. Those pressures were partially offset by higher bond yields, a lower cost of deposits, and improved rates and mix of other borrowings. The overall cost of funds declined seven basis points to 1.52%, and the cost of deposits fell seven basis points to 1.57% (1.53% in December). Following rate cuts in October and December, management reduced promotional pricing on interest-bearing transaction accounts and retail CDs, and said CDs are expected to mature and renew at lower rates in 2026.
Bond portfolio actions and 2026 margin outlook
Management emphasized a bond portfolio restructuring completed in the first two weeks of January 2026. Hairston said the company expects the initiative to add seven basis points to net interest margin (NEM) on an annual basis and improve EPS by $0.23. Achary provided further detail, saying Hancock Whitney sold $1.5 billion of bonds yielding 2.49% and reinvested into bonds yielding 4.35%. He said the annual impact is expected to include:
- ~7 basis points added to NEM
- ~$24 million added to NII
- ~$0.23 added to earnings per share
Achary also discussed ongoing bond portfolio reinvestment dynamics, noting $1.15 billion of principal cash flow expected in 2026, coming back at roughly 3.75% and potentially reinvesting at 4.25% to 4.5%, depending on rates. He said these factors could drive meaningful bond yield improvement from fourth-quarter 2025 to fourth-quarter 2026, while deposit repricing could lower costs further. The company assumes two 25-basis-point rate cuts in April and July 2026.
In response to analyst questions, Achary said management is thinking about NIM improvement primarily on a fourth-quarter-to-fourth-quarter basis, estimating total improvement of roughly 12 to 15 basis points, including seven basis points from the restructuring, while loan yields could continue to decline with rate cuts but at a slower pace than in the fourth quarter.
2026 guidance, hiring plans, and capital actions
For 2026, Achary guided to NII growth of 5% to 6% versus 2025, modest NEM expansion, PP&R growth of 4.5% to 5.5%, and an efficiency ratio of 54% to 55%. He said the guidance includes the expected benefit of the bond restructuring but excludes a pre-tax charge of $99 million associated with the transaction.
Hairston said the company’s multi-year organic growth plan includes hiring up to 50 additional revenue-generating associates in 2026, intended to support growth targets and improve profitability through a focus on “full relationship” clients. Chief Operating Officer Shane Loper, who will now participate on earnings calls, told analysts the bank plans a mix of about 60% business bankers and 40% commercial bankers. Loper said the bank’s hiring discipline and pipeline processes have been strengthened, and that newly hired bankers are being measured on risk-adjusted revenue. He said median break-even for new bankers is typically in the 24- to 26-month range, implying hires made in 2026 could help set up stronger production into 2027 and beyond.
On capital, management noted the company exhausted its prior repurchase authorization, and Hairston said capital ratios were impacted by that activity. The company ended the quarter with tangible common equity (TCE) “a little over 10%” and a Common Equity Tier 1 ratio of 13.66%. The board approved a new 5% buyback plan effective through the end of 2026, with Achary indicating repurchases are expected to occur at a more even pace across 2026 than in 2025, while remaining cognizant of share price sensitivity.
Credit quality and M&A posture
Chief Credit Officer Chris Ziluca said the company is “quite pleased” with the resilience of the loan portfolio, citing reduced inflows and improvements in criticized and non-accrual balances during the quarter. Criticized commercial loans decreased $14 million to $535 million, non-accrual loans fell $7 million to $107 million, and net charge-offs were 22 basis points. Loan loss reserves stood at 1.43% of loans, and management expects 2026 net charge-offs to average 15 to 25 basis points.
Management also addressed investor questions about mergers and acquisitions. Executives reiterated that M&A is not a focus and described the company’s stance as “opportunistic,” adding that if it were to pursue a deal, it would not want to exceed a three-year earnback threshold.
About Hancock Whitney (NASDAQ:HWC)
Hancock Whitney Corporation (NASDAQ: HWC) is a regional financial services company headquartered in Gulfport, Mississippi. The firm was established in April 2019 through the merger of Hancock Holding Company and Whitney Holding Corporation, each of which traced its roots to the late 19th century. This combination created one of the largest bank holding companies in the Gulf South region, with a network of branches serving both urban and rural communities.
The company’s core business activities include commercial banking, retail banking and wealth management services.
