Q4 2025 Hancock Whitney Corp Earnings Call Transcript
Key Points
- Hancock Whitney Corp (HWC) reported strong capital levels with a common equity Tier 1 ratio of 13.66% and a TCE ratio over 10%.
- The company experienced a 1% increase in net interest income (NII) due to favorable volume and mix for both average-earning assets and interest-bearing liabilities.
- Fee income grew in each quarter of the year, totaling $107 million in the fourth quarter, with expectations for a 4% to 5% increase in 2026.
- The efficiency ratio improved to 54.9% for the quarter, reflecting strong net interest income growth and well-controlled expenses.
- Hancock Whitney Corp (HWC) completed a bond portfolio restructuring, expected to contribute positively to NII and NIM growth in 2026.
- Retail time deposits decreased by $90 million due to maturities during the quarter.
- The net interest margin (NIM) decreased by 1 basis point this quarter, partly offsetting the increase in NII.
- The company fully exhausted its share buyback authority last quarter, impacting capital ratios.
- Loan yields decreased due to lower yields on both new fixed and variable rate loans following rate cuts.
- Expenses are expected to rise between 5% and 6% in 2026, partly due to the execution of the organic growth plan and acquisition-related costs.
(audio in progress) driven by seasonal activity and public fund DDA and which increased $417 million. As a reminder, we usually experience seasonal public fund health flows in the first quarter of each year. Our interest-bearing transaction balances were up $223 million with higher balances driven by competitive products and pricing.
Retail time deposits decrease $90 million due to maturities during the quarter, and DDA balances were up $70 million inclusive of a $191 million increase in public fund DDAs. DDA mix ended the quarter at a strong 35%. We expect our investments in financial centers and revenue producers will support our guidance for deposits, which we anticipate will increase low-single digits from 2025 levels.
As previously announced, we fully exhausted our share buyback authority last quarter, which impacted capital ratios. Despite enhanced repurchase volume, we ended the quarter with TCE a little over 10%, and a common equity Tier 1 ratio of 13.66%. Our Board approved a new 5% buyback plan
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
