Hancock Whitney (HWC) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for momentum i ...

Group 1 - The year 2026 is anticipated to be favorable for banks due to solid GDP growth, favorable balance sheet repricing dynamics, a steeper yield curve, stable credit trends, and healthier capital levels [1] - A long-term, buy-and-hold investment approach is favored, particularly in stocks that can sustainably generate high-quality earnings, often found in the dividend and income sectors [1] Group 2 - The article does not provide any specific company-related insights or detailed financial metrics [2][3]

Core Viewpoint - Hancock Whitney Corp. (HWC) reported a fourth-quarter 2025 earnings per share of $1.49, exceeding the Zacks Consensus Estimate by a penny, with a year-over-year increase of 6.4% in the bottom line, driven by higher non-interest income and net interest income (NII) despite rising expenses and provisions [1][8]. Financial Performance - Net income for the fourth quarter was $125.6 million, reflecting a 2.9% increase from the prior-year quarter, surpassing the estimate of $121.4 million [2]. - Total revenues for the quarter reached $389.3 million, consistent with the Zacks Consensus Estimate, and grew 6.7% year over year. For the full year 2025, revenues increased by 4.8% to $1.52 billion, also in line with estimates [3]. - NII on a tax-equivalent basis rose 3% year over year to $284.7 million, with a net interest margin (NIM) of 3.48%, expanding by 7 basis points [3]. Non-Interest Income and Expenses - Non-interest income totaled $107.1 million, up 17.5% year over year, driven by increases across all components, exceeding the projected $99.7 million [4]. - Total non-interest expenses increased by 7.7% to $217.9 million, slightly above the estimate of $215.6 million, leading to an efficiency ratio increase to 54.93% from 54.46% in the previous year [4]. Loans and Deposits - As of December 31, 2025, total loans amounted to $24 billion, a 1.5% increase from the prior quarter, while total deposits rose by 2.2% to $29.3 billion [5]. Credit Quality - The provision for credit losses was $13.1 million, up 10.4% from the prior-year quarter, with net charge-offs (annualized) at 0.22% of average total loans, an increase of 2 basis points [6]. Capital and Profitability Ratios - The Tier 1 leverage ratio decreased to 11.17% from 11.29% year-over-year, and the common equity Tier 1 ratio fell to 13.66% from 14.14% [9]. - Return on average assets improved to 1.41% from 1.40% in the previous year, while return on average common equity declined to 11.28% from 11.74% [9]. Share Repurchase - In the reported quarter, HWC repurchased 2.5 million shares at an average price of $57.62 per share [10]. Strategic Outlook - The company's strategic expansion initiatives and strong loan balance are expected to support ongoing top-line growth, while challenges include weakening asset quality, elevated expenses, and subdued mortgage income [11].

Core Insights - Hancock Whitney Corporation (HWC) reported Q4 2025 earnings per share (EPS) of $1.49, slightly exceeding estimates of $1.48 [2][6] - The company's revenue for the same period was approximately $391.8 million, just below the expected $391.9 million [3][6] - HWC's price-to-earnings (P/E) ratio is approximately 11.65, reflecting the market's valuation of its earnings [4][6] Financial Metrics - HWC's price-to-sales ratio is about 3.81, indicating how the market values its revenue [3] - The enterprise value to sales ratio stands at around 4.62, showing the market's valuation in relation to sales [3] - The enterprise value to operating cash flow ratio is approximately 11.97, indicating the company's valuation concerning its cash flow [4] Debt and Liquidity - The debt-to-equity ratio is approximately 0.27, suggesting a relatively low level of debt compared to equity [5] - The current ratio is around 0.13, which may indicate challenges in covering short-term liabilities with short-term assets [5]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

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Financial Data and Key Metrics Changes - The fourth quarter of 2025 saw an 8% year-over-year improvement in EPS, a 6% growth in PP&R, and a 12% increase in tangible book value per share [6][12] - Earnings for the fourth quarter were $126 million, or $1.49 per share, compared to $127 million in the third quarter [12] - The efficiency ratio improved to 54.9% for the quarter, down from 55.4% in 2024 [12][13] Business Line Data and Key Metrics Changes - Loan growth was $362 million, or 6% annualized, with strong production offsetting an increase in prepayments [9] - Fee income totaled $107 million in the fourth quarter, with growth across all categories driven by higher specialty income [13] - The company expects fee income to grow between 4%-5% in 2026, supported by core deposit account growth [13][59] Market Data and Key Metrics Changes - Deposits increased by $620 million, or 9% annualized, primarily due to seasonal activity in public fund DDA and interest-bearing accounts [9] - Interest-bearing transaction balances rose by $223 million, while retail time deposits decreased by $90 million due to maturities [10] - The company anticipates low single-digit deposit growth from 2025 levels in 2026 [10] Company Strategy and Development Direction - The company plans to hire up to 50 additional revenue-generating associates in 2026 as part of its multi-year organic growth plan [6] - A bond portfolio restructuring is expected to benefit NIM by seven basis points and improve EPS by $0.23 per share [8][16] - The company aims to maintain a balance between profitability and reliable balance sheet growth, with a focus on full relationship clients [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing solid capital levels, robust allowance for credit losses, and positive trends in balance sheet growth [11] - The company expects NII to increase by 5%-6% from 2025, with modest NIM expansion [16] - Management highlighted the importance of consistent balance sheet growth and maintaining strong credit quality [32] Other Important Information - The company fully exhausted its share buyback authority last quarter, impacting capital ratios, but has approved a new 5% buyback plan effective through the end of 2026 [10] - The company’s capital ratios remain strong, with a TCE ratio over 10% and a Common Equity Tier 1 ratio of 13.66% [10] Q&A Session Summary Question: Expectations for loan production versus paydowns - Management noted that loan production increased for the third consecutive quarter, with expectations for sustained funding in 2026 despite anticipated paydowns in commercial real estate [20][24] Question: Clarification on ROA target and TCE ratio - Management indicated that consistent balance sheet growth is crucial for achieving higher ROA targets, with a focus on reinvesting in the company [28][30] Question: Insights on NIM expansion - Management discussed expectations for modest NIM expansion in 2026, driven by organic balance sheet growth and the impact of the bond portfolio restructuring [39][42] Question: Confidence in hiring plans - Management expressed confidence in hiring 50 new bankers in 2026, attributing this to enhanced recruiting processes and a strong pipeline of candidates [46][52] Question: Fee income guidance - Management provided insights on fee income growth, emphasizing the impact of Sable Trust and the potential for growth in various banking segments [56][61] Question: M&A appetite - Management reiterated a focus on organic growth while remaining opportunistic regarding M&A opportunities, emphasizing a disciplined approach [62][64] Question: Credit quality and charge-offs - Management reported a resilient credit portfolio, with a decrease in non-accruals and criticized loans, and indicated potential for gradual reduction in reserves [99][102]

Financial Data and Key Metrics Changes - The fourth quarter of 2025 saw an 8% year-over-year improvement in EPS, a 6% growth in PP&R, and a 12% increase in tangible book value per share [6] - Fourth quarter earnings were $126 million, or $1.49 per share, compared to $127 million, or $1.49 per share in the third quarter [12] - The efficiency ratio improved to 54.9% for the quarter, down 58 basis points from 2024's 55.4% [12][13] Business Line Data and Key Metrics Changes - Loans grew by $362 million, or 6% annualized, with strong production offsetting prepayments [9] - Fee income totaled $107 million in the fourth quarter, with growth across all categories driven by higher specialty income [13] - The company expects fee income to increase by 4%-5% in 2026, supported by core deposit account growth [13] Market Data and Key Metrics Changes - Deposits increased by $620 million, or 9% annualized, primarily due to seasonal activity in public fund DBA and interest-bearing accounts [9] - Interest-bearing transaction balances rose by $223 million, while retail time deposits decreased by $90 million due to maturities [10] - The company anticipates low single-digit deposit growth from 2025 levels in 2026 [10] Company Strategy and Development Direction - The company plans to hire up to 50 additional revenue-generating associates in 2026 as part of its multi-year organic growth plan [6] - A bond portfolio restructuring is expected to benefit NEM by seven basis points and improve EPS by $0.23 per share [8][16] - The company aims to maintain a balanced growth strategy, focusing on both profitability and reliable balance sheet growth [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, highlighting solid capital levels, robust allowance for credit losses, and benign asset quality [11] - The company expects NII to grow by 5%-6% in 2026, with modest NEM expansion and an efficiency ratio between 54% and 55% [16] - Management noted that the current economic environment is rapidly evolving, impacting their ability to project results accurately [3][4] Other Important Information - The company fully exhausted its share buyback authority last quarter, impacting capital ratios, but has approved a new 5% buyback plan effective through the end of 2026 [10] - The company reported a decrease in criticized commercial loans and non-accrual loans, indicating improved credit quality [16][17] Q&A Session Summary Question: Loan production and paydowns expectations - Management noted that loan production increased for the third consecutive quarter, with expectations for sustained funding throughout 2026 despite anticipated paydowns in commercial real estate [20][24] Question: ROA target and TCE ratio - Management discussed the importance of consistent balance sheet growth and the assumptions underlying their targets, including Fed funds rate expectations [28][30] Question: NIM expansion and bond restructure impact - Management explained that the bond portfolio restructure would contribute to NIM improvement, alongside organic balance sheet growth and reduced cost of deposits [39][42] Question: Fee income guidance and growth expectations - Management expressed confidence in achieving a 4%-5% fee income growth target, supported by strong performance across various banking segments [56][59] Question: M&A appetite and strategy - Management reiterated their opportunistic stance on M&A, emphasizing a focus on organic growth while remaining aware of market conditions [62][64] Question: Credit quality and charge-offs - Management reported a resilient credit portfolio with decreasing non-accruals and criticized loans, indicating a stable outlook for charge-offs [98][100]

Financial Data and Key Metrics Changes - The fourth quarter of 2025 saw an 8% year-over-year improvement in EPS, a 6% growth in PP&R, and a 12% increase in tangible book value per share [5] - Fourth quarter earnings were $126 million, or $1.49 per share, compared to $127 million, or $1.49 per share in the third quarter [10] - The efficiency ratio improved to 54.9% for the quarter, down from 55.4% in 2024 [10][11] Business Line Data and Key Metrics Changes - Loans grew by $362 million, or 6% annualized, with strong production offsetting an increase in prepayments [7] - Fee income totaled $107 million in the fourth quarter, with growth across all categories driven by higher specialty income [11] - Retail time deposits decreased by $90 million due to maturities, while DDA balances increased by $70 million [8] Market Data and Key Metrics Changes - Deposits increased by $620 million, or 9% annualized, largely due to seasonal activity in public fund DBA and interest-bearing accounts [7] - Interest-bearing transaction balances rose by $223 million, driven by competitive products and pricing [8] - The cost of deposits decreased by 7 basis points to 1.57% for the quarter [12] Company Strategy and Development Direction - The company plans to hire up to 50 additional revenue-generating associates in 2026 to support growth targets [5] - A bond portfolio restructuring was completed, expected to benefit NEM by seven basis points and improve EPS by $0.23 per share [6][14] - The company aims for loan growth in 2026 to be mid-single digits compared to the previous year-end [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, highlighting solid capital levels, robust allowance for credit losses, and positive trends in balance sheet growth [9] - The company expects NII to increase by 5% to 6% from 2025, with modest NEM expansion [14] - Management noted that the economic environment is rapidly evolving, impacting projections and strategies [2][3] Other Important Information - The company fully exhausted its share buyback authority last quarter, impacting capital ratios, but a new 5% buyback plan was approved for 2026 [8] - The company maintains strong capital ratios, with TCE over 10% and a Common Equity Tier 1 ratio of 13.66% [8] Q&A Session Summary Question: Expectations for loan production versus paydowns - Management indicated that loan production increased for the third consecutive quarter, with expectations for sustained fundings throughout 2026 despite anticipated paydowns in commercial real estate [21][25] Question: Clarification on ROA target and TCE ratio - Management explained that consistent balance sheet growth and reinvestment in the company are key to achieving higher ROA targets while maintaining a strong TCE ratio [27][29] Question: Insights on NIM expansion - Management discussed that NIM improvement is expected from organic balance sheet growth and the bond portfolio restructuring, with a modest expansion anticipated [40][42] Question: Confidence in hiring plans for bankers - Management expressed confidence in hiring 50 new bankers in 2026, citing enhanced hiring processes and strong performance from recently hired bankers [48][50] Question: Fee income growth expectations - Management provided insights into fee income growth, emphasizing the potential for 4%-5% growth in 2026, supported by improvements in various banking segments [56][58] Question: M&A appetite and strategy - Management reiterated a focus on organic growth and described their M&A strategy as opportunistic, with no immediate plans for acquisitions [62][63]