Hancock Whitney commenced 2026 with an impressive financial showing, revealing robust first-quarter metrics. The company achieved an adjusted Return on Assets (ROA) of 1.43% and a Return on Tangible Common Equity (ROTCE) of 14.64%. Earnings Per Share (EPS) saw a notable increase exceeding 10% compared to the same period last year. This strong performance was bolstered by the strategic addition of 27 new revenue-generating professionals, laying a solid foundation for anticipated loan growth in the mid-single digits.

A key highlight of the quarter was the expansion of the net interest margin (NIM) by 7 basis points. This improvement was largely attributed to a strategic restructuring of the bond portfolio, which led to higher securities yields. While deposits experienced a seasonal dip, primarily due to public fund outflows, the company maintains a positive outlook, expecting low single-digit deposit growth from 2025 levels. Additionally, Hancock Whitney demonstrated its commitment to shareholder value through the repurchase of 1.4 million shares and an 11% increase in its quarterly cash dividend, now set at $0.50 per share. Despite ongoing market fluctuations, leadership remains confident in the institution's growth trajectory for the remainder of 2026, citing strong capital positions and ample liquidity.

During the earnings conference call, various executives elaborated on the first quarter's achievements and future strategies. John Hairston, President and CEO, emphasized the solid start to the year and the positive momentum gained from new hires. He noted that the bond restructuring, finalized in January, is expected to continue positively impacting NIM throughout the year. Chief Financial Officer Mike Ackery provided further detail, stating that adjusted net income for the quarter stood at $125 million, or $1.52 per share, after accounting for the bond portfolio restructuring loss. He affirmed the company's full-year guidance, now factoring in a scenario of flat interest rates with no significant impact on Net Interest Income or NIM.

Discussions during the call also delved into loan growth dynamics. While the first quarter saw a modest $33 million increase in loans, the underlying momentum was strong, with annualized loan production reaching $1.2 billion, a significant rise from the previous year. Shane Loper, Chief Operating Officer, highlighted the impact of new bankers, explaining that hires from 2024 and 2025 are now entering their most productive years, creating a compounding effect with the recent additions. The focus on business banking, with 70% of new hires in this segment, is expected to drive more granular and higher-margin loan growth. Mike Ackery confirmed that loan yields are projected to remain stable, with competition being a factor but manageable through strategic growth and improved loan mix.

Capital management was another focal point. Mike Ackery outlined the company's target for Common Equity Tier 1 (CET1) ratio to be between 12% and 12.5% by the fourth quarter of 2028, and a Tangible Common Equity (TCE) ratio of 9% to 9.5%. He reiterated the commitment to returning capital to shareholders through ongoing share repurchases and dividend increases, while prioritizing organic balance sheet growth. The bond restructuring transaction, executed in January, was considered a smart use of capital, contributing to NIM expansion despite a longer payback period than previous similar initiatives. The flexibility in buyback strategy was also discussed, allowing the company to react to market conditions and valuation, with the ultimate goal of fully utilizing the authorized buyback capacity.

The company's fee income performance also met expectations, supporting the projected 4-5% growth for the full year. Shane Loper pointed to strong contributions from treasury and business service charges, merchant services, and SBA activities. Wealth management, now accounting for 35% of non-interest income, continues to show momentum, with fees closely tied to assets under management and market performance. John Hairston and Chris Saluka addressed macroeconomic concerns, including the Middle East conflict and rising energy costs, noting that while clients are cautious, these factors have not yet dramatically impacted investment decisions or credit quality. The bank's continuous investment in treasury management, payment capabilities, and card products aims to enhance its value proposition for commercial clients, reinforcing its ambition to be a leading bank for privately owned businesses.