Hancock Whitney (NASDAQ:HWC) announced its financial results for the first quarter of 2026, characterized by a sequential decline in net income following a record-breaking end to 2025.
Despite the dip in bottom-line earnings, the Gulfport, Mississippi-based lender reported a strengthening net interest margin and solid capital ratios, reflecting a disciplined approach to the current interest rate environment.
For the quarter ended March 31, 2026, the company reported net income of $47.4 million, or $0.57 per diluted share.
This compares to $125.6 million, or $1.49 per diluted share, in the fourth quarter of 2025.
The sequential decrease primarily reflects the absence of certain one-time gains realized in the prior quarter and seasonal fluctuations in non-interest expense.
Adjusted pre-provision net revenue (PPNR) remained relatively stable at $172.9 million, compared to $174.0 million in the previous period.
The bank’s net interest margin (NIM) was a bright spot, rising 7 basis points sequentially to 3.55%.
This expansion was supported by recent bond portfolio restructuring and a continued focus on managing deposit costs.
Total loans increased by $33 million (1% linked-quarter annualized), while deposits saw a seasonal decrease of $198 million (3% LQA), a trend typical for the first quarter due to public fund outflows.
Meanwhile, credit quality metrics remained manageable, with the allowance for credit losses (ACL) coverage holding steady at 1.43%.
While nonaccrual loans saw a slight increase, the bank reported a decrease in criticized commercial loans, signaling ongoing resilience in its core commercial portfolio.
Hancock Whitney ended the quarter with an estimated Common Equity Tier 1 (CET1) ratio of 13.30% and a Tangible Common Equity (TCE) ratio of 9.93%, both reflecting the impact of recent share repurchases and balance sheet management.