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Hancock Whitney Corporation (HWC)
NASDAQ:HWC
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Hancock Whitney
(NASDAQ:HWC)
Rating:75Outperform
Price Target:―
Hancock Whitney (HWC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.65B
Dividend Yield3.04%
Average Volume (3M)645.28K
Price to Earnings (P/E)10.0
Beta (1Y)1.21
Revenue Growth-2.86%
EPS GrowthN/A
CountryUS
Employees3,497
SectorFinancial
Sector Strength81
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.38
Shares Outstanding85,643,196
10 Day Avg. Volume611,341
30 Day Avg. Volume645,278
Financial Highlights & Ratios
PEG Ratio4.10
Price to Book (P/B)1.15
Price to Sales (P/S)0.00
P/FCF Ratio7.77
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit2.88
Enterprise Value/Ebitda2.56
Forecast
1Y Price Target
$65.00Price Target Upside16.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Hancock Whitney Business Overview & Revenue Model
Company DescriptionHancock Whitney Corporation operates as the financial holding company for Hancock Whitney Bank that provides traditional and online banking services to commercial, small business, and retail customers. It accepts various deposit products, including noninterest-bearing demand deposits, interest-bearing transaction accounts, savings accounts, money market deposit accounts, and time deposit accounts. The company also offers loans products comprising commercial and industrial loans; commercial real estate loans; construction and land development loans; residential mortgages; consumer loans comprising second lien mortgage home loans, home equity lines of credit, and nonresidential consumer purpose loans; revolving credit facilities; and letters of credit and financial guarantees. In addition, it offers investment brokerage and treasury management services, and annuity and life insurance products; and trust and investment management services to retirement plans, corporations, and individuals. Further, the company facilitates investments in new market tax credit activities; and holds various foreclosed assets. The company operates 177 banking locations and 239 automated teller machines primarily in the Gulf south corridor, including southern and central Mississippi; southern and central Alabama; southern, central, and northwest Louisiana; the northern, central, and panhandle regions of Florida; and certain areas of east Texas, including Houston, Beaumont, Dallas, and San Antonio. It also operates a loan production office in Tennessee; and a trust and asset management office in Texas. The company was formerly known as Hancock Holding Company and changed its name to Hancock Whitney Corporation in May 2018. Hancock Whitney Corporation was founded in 1899 and is headquartered in Gulfport, Mississippi.
How the Company Makes MoneyHancock Whitney Corporation generates revenue through a variety of financial services. Its primary revenue streams include interest income from loans and leases, which is the largest contributor to its earnings. This encompasses residential and commercial mortgages, personal loans, and business loans. Additionally, Hancock Whitney earns non-interest income from fees and services related to wealth management, investment advisory, insurance products, and transaction-based fees from deposit accounts. The company also benefits from strategic partnerships with financial service providers and local community involvement, enhancing its customer base and market reach. Its diversified revenue model ensures resilience against market fluctuations and supports sustained financial performance.
Hancock Whitney Earnings Call Summary
Earnings Call Date:Apr 15, 2025
(Q1-2025)
| % Change Since: 14.66%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflected strong financial performance with notable achievements in NIM expansion and fee income growth. However, challenges were noted with declines in loans and deposits. The company's strategic initiatives, such as the Sable Trust acquisition and capital returns, were well-received, but the economic environment and loan yield pressures presented ongoing challenges.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Hancock Whitney Corporation reported a 1.41% return on assets (ROA) and ended the quarter with a total risk-based capital of 16.39%.
Net Interest Margin Expansion
The Net Interest Margin (NIM) expanded by two basis points to 3.43%, driven by lower deposit costs and a favorable funding mix.
Fee Income Growth
Fee income increased by 9% to 10% year over year, with strong performance across most categories.
Capital Return to Shareholders
The company repurchased 350,000 shares of common stock and increased the common stock dividend to $0.45 per share, a 50% increase from last year.
Sable Trust Acquisition
The acquisition of Sable Trust Company is expected to close on May 2nd, contributing approximately two cents per share to earnings in 2025.
Negative Updates
Loan Decline
Loans were down $201 million due to higher payoffs, particularly in the healthcare and commercial non-real estate sectors.
Deposit Decline
Deposits were down $298 million, primarily driven by seasonal public fund outflows.
Lower Loan Yield
Loan yields decreased by 18 basis points to 5.84%, impacted by lower average loan balances and yields on the variable rate loan portfolio.
Company Guidance
In the first quarter of 2025, Hancock Whitney Corporation reported a strong financial performance, with notable metrics including a 1.41% return on assets (ROA) and a total risk-based capital ratio of 16.39%. The company achieved a net income of $120 million, translating to earnings per share (EPS) of $1.38, and experienced a net interest margin (NIM) expansion to 3.43%. Despite a $201 million decline in loans, primarily due to payoffs in healthcare and commercial non-real estate sectors, the company anticipates low single-digit loan growth for 2025, with most growth expected in the second half of the year. Fee income is projected to increase by 9% to 10% year-over-year, supported by the Sable Trust transaction, set to close on May 2nd. Hancock Whitney also reported a decrease in deposits by $298 million, mainly due to seasonal outflows of public funds, though its non-interest-bearing deposit mix remained stable at 36%. The company returned capital to shareholders by repurchasing 350,000 shares and raising the common stock dividend to $0.45 per share. The common equity tier one ratio was reported at 14.51%, and the tangible common equity ratio at 10.01%, underscoring robust capital metrics.Hancock Whitney Financial Statement Overview
Summary
Hancock Whitney demonstrates strong revenue growth and profitability, supported by a robust balance sheet with conservative leverage. However, cash flow management appears to be a potential area of concern, with reduced free cash flow generation. Overall, the company remains well-positioned but should focus on enhancing cash flow efficiency and operational data transparency.Income Statement
Hancock Whitney's income statement reflects a strong recovery and growth trajectory. The gross profit margin stands at 100%, indicating efficient cost management. The net profit margin improved to 27.2% in 2024 from 29.7% in 2023. Revenue grew by 28.1% from the previous year, showcasing robust top-line expansion. However, the absence of reported EBIT and EBITDA margins in 2024 limits further analysis on operational efficiency.85
Very Positive
Balance Sheet
The balance sheet of Hancock Whitney shows a well-capitalized position with a debt-to-equity ratio of 0.21, indicating conservative leverage. The equity ratio improved to 11.8% in 2024, reflecting a solid financial foundation. Return on equity decreased slightly to 11.2% from 10.3% in 2023, suggesting stable profitability. However, the company's total assets have slightly decreased, suggesting a potential area to monitor for future asset growth.78
Positive
Cash Flow
Cash flow analysis reveals a decrease in operating cash flow to net income ratio to 0.49, indicating less cash generation relative to net income. Free cash flow declined by 51.7% from the previous year, which may impact the company's ability to reinvest or pay dividends. The free cash flow to net income ratio stands at 0.49, reflecting moderate cash conversion efficiency. This signals potential challenges in maintaining liquidity for future investments.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.44B | 1.32B | 1.38B | 1.30B | 1.27B | Gross Profit |
| 1.44B | 1.32B | 1.38B | 1.30B | 1.27B | EBIT |
| 566.15M | 604.35M | 777.84M | 568.06M | -124.75M | EBITDA |
| 0.00 | 536.40M | 704.81M | 613.83M | -74.70M | Net Income Common Stockholders |
| 460.81M | 392.60M | 524.09M | 463.21M | -45.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.74B | 6.10B | 6.44B | 8.06B | 3.19B | Total Assets |
| 35.08B | 35.58B | 35.18B | 36.53B | 33.64B | Total Debt |
| 967.38M | 1.52B | 2.11B | 1.91B | 2.05B | Net Debt |
| 274.65M | 328.92M | 1.23B | -2.32B | 186.18M | Total Liabilities |
| 30.95B | 31.77B | 31.84B | 32.86B | 30.20B | Stockholders Equity |
| 4.13B | 3.80B | 3.34B | 3.67B | 3.44B |
| Cash Flow | Free Cash Flow | |||
| 615.50M | 470.22M | 812.88M | 562.15M | 317.32M | Operating Cash Flow |
| 621.24M | 495.25M | 842.02M | 585.69M | 355.19M | Investing Cash Flow |
| 274.76M | -295.21M | 662.36M | -3.22B | -3.18B | Financing Cash Flow |
| -886.79M | -203.29M | -1.34B | 2.51B | 2.92B |
Hancock Whitney Technical Analysis
Positive
55.83
Price Trends
52.29
Positive
54.44
Positive
53.61
Positive
Market Momentum
1.01
Positive
56.88
Neutral
32.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HWC, the sentiment is Positive. The current price of 55.83 is above the 20-day moving average (MA) of 55.10, above the 50-day MA of 52.29, and above the 200-day MA of 53.61, indicating a bullish trend. The MACD of 1.01 indicates Positive momentum. The RSI at 56.88 is Neutral, neither overbought nor oversold. The STOCH value of 32.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HWC.
Hancock Whitney Risk Analysis
Hancock Whitney disclosed 39 risk factors in its most recent earnings report. Hancock Whitney reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The development and use of artificial intelligence (AI) presents risks and challenges that may adversely impact our business. Q4, 2024
2.
Our investments in certain tax-advantaged projects may not generate returns as anticipated or at all and may have an adverse impact on our results of operations. Q4, 2024
3.
Our business may be adversely affected by fraud. Q4, 2024
Hancock Whitney Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $5.16B | 7.45 | 12.85% | 3.74% | 13.85% | 2.43% | |
76 Outperform | $5.09B | 11.17 | 7.40% | 3.47% | 10.18% | 2.27% | |
75 Outperform | $4.65B | 10.02 | 11.53% | 3.04% | -2.86% | ― | |
74 Outperform | $4.36B | 0.06 | 15.46% | 7.42% | -40.21% | -16.07% | |
73 Outperform | $4.62B | 21.76 | 6.63% | 3.25% | 8.10% | 6.95% | |
67 Neutral | $5.08B | 10.20 | 9.73% | 6.10% | -0.21% | 1.69% | |
64 Neutral | $12.67B | 9.74 | 7.58% | 17015.08% | 12.21% | -6.96% |
* Financial Sector Average
Performance Comparison
HWC
Hancock Whitney
55.83
11.39
25.63%
OZK
Bank OZK
45.49
1.12
2.52%
BBAR
Banco BBVA Argentina
21.02
12.50
146.71%
COLB
Columbia Banking System
24.15
6.12
33.94%
FNB
F.N.B.
14.16
0.93
7.03%
GBCI
Glacier Bancorp
41.75
5.30
14.54%
Hancock Whitney Corporate Events
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Hancock Whitney Reports Q1 2025 Financial Results
Neutral
Apr 15, 2025
Hancock Whitney Corporation reported its financial results for the first quarter of 2025, showing a net income of $119.5 million, or $1.38 per diluted share, slightly down from the previous quarter. Despite a decrease in loans and deposits, the company saw improvements in its net interest margin and capital ratios, and it increased its quarterly common stock dividend by 50% year-over-year. The company also repurchased 350,000 shares of its common stock and plans to continue its organic growth strategy while integrating Sabal Trust Company associates and clients.
Spark’s Take on HWC Stock
According to Spark, TipRanks’ AI Analyst, HWC is a Outperform.
Hancock Whitney’s stock is supported by solid financial performance and attractive valuation, despite short-term technical weaknesses. Strategic growth initiatives and planned expansions provide a positive outlook. However, attention to improving cash flow and credit quality will be crucial for sustained growth.
To see Spark’s full report on HWC stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.