Hancock Whitney Corporation Q1 FY2026 earnings call

John Harrison mentioned that the company reported a solid start to 2026 with adjusted ROA of 1.43%, ROTCE of 14.64%, and EPS of $1.52, all improved from prior quarter. They welcomed 27 net new revenue producers. NIM expanded seven basis points this quarter due to higher securities yields following bond portfolio restructuring and lower cost of funds. The efficiency ratio was about 55%, with consistent strong fee income and well-managed expenses. Loans had growth with a strong pipeline and continued success in adding bankers. Deposits had seasonal outflows but DDA mix was strong. The company proactively returned capital to shareholders through share repurchases and increasing the quarterly cash dividend. Mike Ackery talked about net income, PPNR, NIM components like yield on bond portfolio and cost of funds, criticized commercial loans improvement, net charge-offs, and strong capital ratios.

Loan growth: Loans grew 33 million or 1% annualized. Loan production totaled 1.2 billion, down from last quarter but up 365 million compared to the same quarter last year. Deposits: Down 198 million or 3% annualized due to seasonal public funds outflows. Excluding the impact of public fund DDA outflows, DDAs would actually have been up 45 million. DDA mix ended the quarter at a very strong 36%. Interest bearing transaction and savings accounts were up $261 million, with higher balances driven by competitive products and pricing. Retail time deposits were down $149 million due to maturities during the quarter. We continue to enjoy a healthy CD renewal rate of about 85%.

The guidance for loan growth of mid single digits for the year is unchanged. The guidance on deposits of balances being up low single digits from 2025 levels is unchanged. Share repurchases are expected to continue at similar levels throughout the year. Targets for CET1 are between 12% and 12.5% and for TCE between 9% and 9.5% by the end of 2028.

Monitoring macroeconomic trends and indicators as the current economic environment is rapidly evolving. Market volatility and an emerging scenario of flat rates pose challenges. The company's ability to accurately project results is limited due to the dynamic economic environment, but it remains well positioned with ample liquidity, solid allowance for credit losses, and very strong capital.

Q: About loan growth and banker hires; A: Shane Loper answered that first quarter loan growth had solid momentum, produced about $1.2 billion in loans up from a year ago with strength across segments, growth would be more weighted to mid and back half of the year, and 27 net new bankers hired with more to come in second quarter.

Q: About buybacks and CET1 target; A: Mike Ackery talked about CET1 target between 12% - 12.5% and TCE between 9% - 9.5% by end of 2028, and efforts like share repurchases and dividend increase.

Q: About NIM margin; A: Mike Ackery explained NIM expansion drivers including securities restructuring, lower cost of deposits, and loan growth.

Q: About loan yield and criticized loans; A: Mike Ackery said loan yield likely to remain in current range, Chris Saluca talked about criticized loans improvement and expected flattening.

Q: About loan growth prepayments; A: John Harrison and Shane Loper said prepayments are planned into production reconciliation.

Q: About fee income; A: Mike Ackery said fee income performing in line with expectations, supports 4% - 5% growth for full year, bias toward upper end of range.

Q: About bond restructuring; A: John Harrison said bond restructuring was a smart use of capital.

Q: About CD repricing and buybacks; A: Mike Ackery talked about CD repricing to lengthen maturity and intent to exhaust buyback authorization.

Q: About Middle East conflict impact; A: Shane Loper said clients are cautious, Chris Saluca said early to tell impact on credit.

Q: About treasury capabilities and revenue producers; A: Shane Loper talked about treasury product updates and John Harrison said revenue producers north of 200.