핸콕 휘트니(HWC) 2026년 3분기 실적 컨퍼런스 콜: 마진 확대, 예금 증가 및 가이던스 업데이트

핵심 요약

• 핸콕 위트니(Hancock Whitney Corporation)는 2026년 3분기 조정 순이익이 1억 3,400만 달러(주당 1.66달러)로, 2분기의 1억 2,700만 달러(주당 1.55달러)에서 증가했다고 발표했다.
• 원 플로리다 은행(One Florida Bank) 인수 비용을 제외한 충당금 적립 전 순이익(PPNR)은 전분기 대비 6% 증가한 1억 8,900만 달러, 전년 동기 대비 8% 증가했다. 조정 주당순이익(EPS)은 전년 동기 대비 17% 증가했다.
• 순이자마진(NIM)은 3.61%로 5bp 확대되었다. 매수회계상 상각 상승이 4bp 기여했으며, 대출 및 유가증권 수익률 상승도 실적을 뒷받침했다.
• 원 플로리다를 제외한 대출은 연율 4%, 예금은 연율 9% 증가했다. 경영진은 대출과 예금 모두에 대해 연간 10%대 초반의 성장 전망을 유지했다.
• 자산 건전성은 대체로 안정적인 수준을 유지했다. 요주의 상업용 대출은 7분기 연속 감소했으나, 무수익 대출은 1,900만 달러 증가한 1억 3,300만 달러를 기록했다.
• 유형보통주자본(TCE) 비율이 8.05%로 하락함에 따라, 경영진은 금리 전망이 더 명확해질 때까지 2026년 추가 자사주 매입을 일시 중단할 가능성이 높다고 밝혔다.

핵심 재무 데이터

사업 및 영업 성과

원 플로리다 은행 인수 거래는 8월 1일에 완료되었다. 인수 대출을 제외한 자체 대출 성장률은 연율 4%를 기록했다. 성장은 다양한 상품의 상업용 부동산과 장비 금융의 지속적인 확장이 견인했다. 경영진은 상업용 부동산, 헬스케어 및 상공업(C&I) 대출이 4분기의 주요 기여 요인이 될 것으로 전망한다.

인수 예금을 제외한 예금 성장률은 연율 9%에 달했다. 이자부 거래성 예금 잔액은 머니마켓계좌(MMA) 및 양도성예금증서(CD)의 프로모션 금리 혜택을 받았다. 경영진은 이러한 프로그램이 조달 비용을 높이기도 하지만 향후 몇 분기 동안 대출 성장을 위한 유동성을 확보하기 위한 목적이라고 설명했다.

무이자 예금은 이번 분기 동안 약 2억 달러 감소했다. 경영진은 원 플로리다 고객들이 자금을 머니마켓계좌로 이동시킨 점과 상업, 개인 및 공공자금 예금의 계절적 이동에 따른 감소로 분석했다. 회사는 이러한 잔액의 상당 부분이 4분기에 회복될 것으로 예상하고 있다.

채권 포트폴리오 수익률은 11bp 상승한 3.46%를 기록했으며, 대출 수익률도 11bp 상승했다. 경영진은 4분기에 4% 미만의 수익률을 내는 최소 3억 달러 규모의 유가증권 현금 흐름이 5.5% 이상의 금리로 재투자될 것으로 예상하고 있다.

2025년 초 이후 영입된 신규 뱅커들이 2026년 연초 대비 누적 대출 성장의 55%, 3분기 대출 성장의 77%를 창출했다. 이들은 연초 대비 누적 예금 성장의 19%, 3분기 예금 성장의 15%에 기여했다. 핸콕 위트니는 원 플로리다를 통해 추가된 20명의 뱅커를 제외하고 분기 말 기준 순신규 뱅커 38명, 실적 발표 당시 기준 42명을 보유했다. 경영진은 연말까지 순신규 채용 50명, 원 플로리다를 포함해 약 70명을 목표로 하고 있다.

경영진 가이던스

이 전망은 12월에 한 차례 25bp의 금리 인상이 있을 것으로 가정하며, 이는 4분기 실적에 미치는 영향이 미미할 것으로 본다. 경영진은 자체 대차대조표 성장과 유가증권 재투자에 힘입어 4분기 순이자마진(NIM)이 약 3~5bp 확대될 것으로 예상한다.

프로모션 예금 프로그램이 지속됨에 따라 4분기 예금 비용은 약 12bp 추가 상승하고, 상황에 따라 1~2bp 더 올라갈 수 있을 것으로 예상된다. 경영진은 또한 4분기 대출 성장률이 5% 안팎(한 자릿수 중반)으로 마무리될 것으로 전망한다.

리스크 및 주요 점검 사항

유형보통주자본(TCE) 비율은 173bp 하락한 8.05%를 기록했다. 경영진은 하락분 중 111bp는 원 플로리다 현금 인수, 59bp는 OCI, 약 22bp는 자사주 매입에 기인한 것으로 설명했다. 회사는 3분기에 100만 주를 매입하여 2026년 승인 한도 중 100만 주가 남아있다.

경영진은 TCE 비율이 8% 미만으로 떨어지지 않기를 선호한다고 밝혔다. 3분기 동안 10년 만기 미국 국채 금리가 82bp 상승함에 따라, 회사는 금리 전망이 더 명확해질 때까지 추가 자사주 매입에 관망세를 유지할 가능성이 높다. 경영진은 연말까지 보통주자본(CET1) 비율이 12%에 가까워질 것으로 예상한다.

조달 비용 역시 주요 관심사로 남아있다. 프로모션 상품이 예금 및 유동성 성장을 뒷받침하고 있으나, 예금 비용은 3분기에 12bp 증가했으며 4분기에도 비슷한 속도로 상승할 것으로 예상된다.

요주의 상업용 대출의 지속적인 개선에도 불구하고 무수익 대출은 증가했다. 그럼에도 경영진은 전반적인 자산 건전성이 안정적이라고 평가했으며 연간 순상각 가이던스를 유지했다.

경영진은 기업 고객들의 심리가 신중한 낙관론을 유지하고 있으나, 고객들이 에너지 비용, 인플레이션 및 연방준비제도(Fed)의 대응을 더 유심히 지켜보고 있다고 전했다. 금리 상승으로 인해 신규 프로젝트에 대한 수요가 줄어들 수 있으나, 상업용 부동산 조기 상환 감소와 은행의 약한 자산 민감도가 이러한 압력을 일부 상쇄할 수 있다.

애널리스트 Q&A 하이라이트

• 마진 전망: 경영진은 4분기 마진이 3~5bp 확대될 것으로 예상합니다. 자체 수익자산 증가와 유가증권 재투자 수익률 상승이 예금 비용의 추가 상승을 상쇄할 것입니다.
• 예금 전략: 핸콕 위트니는 중소기업의 영업 계좌를 유치하기 위해 자금 관리 서비스 인력을 보강하고 예금 전담 직책을 검토하고 있습니다. 경영진은 4분기 예금 성장률이 대출 성장률을 다시 앞지를 것으로 예상합니다.
• 대출 수요: 금리 상승으로 일부 신규 건설 및 상업용 부동산 활동이 둔화될 수 있으나, 경영진은 대출 상환 감소, 신규 뱅커 추가 및 원 플로리다의 올랜도 영업이 이를 상쇄할 것으로 기대합니다.
• 원 플로리다 통합: 경영진은 인수된 은행의 자금 관리 철학이 핸콕 위트니와 유사하다고 밝혔습니다. 회사는 영업 지역 내 적합한 시장 전반에 걸쳐 원 플로리다의 주택소유자협회(HOA) 뱅킹 역량을 확장할 계획입니다.
• 지역 투자: 데이터 센터, 제조업 및 인프라 프로젝트가 미시시피주와 루이지애나주의 자체적 활동을 끌어올리고 있습니다. 경영진은 시공업체들이 유리한 대금 지급 조건을 적용받고 있어 초기 수혜가 대출보다는 예금에서 더 두드러지게 나타나고 있다고 전했습니다.
• M&A: 단기적 최우선 과제는 원 플로리다의 통합 및 시스템 전환입니다. 경영진은 자체 대차대조표 성장을 최우선 과제로 유지하면서 향후 인수합병 기회를 모색할 것이라고 밝혔습니다.
• 신디케이트론: 공동주간대출(SNC) 익스포저는 약 8.6%로 회사 자체 한도인 10%를 하회했습니다. 경영진은 성장 및 수수료 창출의 여력이 일부 있다고 보지만, 신용 리스크 수용 성향을 변경할 계획은 없습니다.

실적 발표 전화회의 전체 전문

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전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Good day, ladies and gentlemen, and welcome to Hancock Whitney Corporation's Third Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this call may be recorded. I would now like to introduce your host for today's conference, Ashleigh Wilshire, Head of Investor Relations. You may begin.

Ashleigh Wilshire

Thank you, and good afternoon. During today's call, we may make forward-looking statements. We would like to remind everyone to carefully review the safe harbor language that was published with the earnings release and presentation and in the company's most recent 10-K and 10-Q, including the risks and uncertainties are defined therein. You should keep in mind that any forward-looking statements made by Hancock Whitney speak only as of the date on which they were made.

As everyone understands, the current economic environment is rapidly evolving and changing. Hancock Whitney's ability to accurately project results or predict the effects of future plans or strategies or predict market or economic developments is inherently limited. We believe that the expectations reflected or implied by any forward-looking statements are based on reasonable assumptions but are not guarantees of performance or results, and our actual results and performance could differ materially from those set forth in our forward-looking statements.

Hancock Whitney undertakes no obligation to update or revise any forward-looking statements and you are cautioned not to place undue reliance on such forward-looking statements. Some of the remarks contain non-GAAP financial measures. You could find reconciliations to the most comparable GAAP measures in our earnings release and the financial tables. The presentation slides included in our 8-K are also posted with the conference call webcast link on the Investor Relations website. We will reference some of these slides in today's call. Participating in today's call are John Hairston, President and CEO; Mike Achary, CFO; Chris Ziluca, Chief Credit Officer; and Shane Loper, Chief Operating Officer.

I will now turn the call over to John Hairston.

John Hairston

Thank you, Ashleigh, and thanks, everyone, for joining us today. The third quarter of 2026 was another solid quarter of profitability, efficiency and balance sheet growth. Adjusting for expenses related to the acquisition, EPS improved 17% and PPNR grew 8%, both compared to same quarter previous year. We were also pleased to welcome new colleagues and clients through the transaction with One Florida Bank, which closed on August 1. Excluding loans acquired from One Florida, loan growth met expectations at 4% annualized and continue to be funded by growth in core deposits.

As shown on Slide 8 of our investor deck, loan production was strong and line utilization remained consistent with prior quarter. Growth was driven primarily by a lift in commercial real estate across multiple products and continued growth in equipment finance. Our guidance for the full year remains unchanged at low double-digit growth. Excluding deposits acquired from One Florida, deposit growth was strong at 9% annualized. This growth was led by the increase in interest-bearing transactions resulting from attractive products, pricing and strong clients.

Our guidance for the full year remains unchanged at low double-digit growth for the year. Criticized loan levels improved for the seventh straight quarter, while nonaccrual loans modestly increased, and our ACL coverage remains solid at 1.42%. We view overall asset quality as stable and continue to be well reserved. Profitability, efficiency and returns continue to perform very well with an adjusted 1.41% ROA, efficiency ratio of 54.46% and an ROTCE of 16.4%. Top line revenue continued to cover significant offensive reinvestment and expenses continued to be well managed.

Mike will add additional comments in his remarks, but I will note, we have updated our guidance on Page 19 to provide both fourth quarter and full year 2026 outlook. As shown on Slide 18 of the investor deck, our capital ratios remain strong and reflect capital deployed for both inorganic and organic growth, return to shareholders and the impact of the rising rate environment. We maintain confidence in our strategy to grow the balance sheet and enhance our operational efficiency. And we remain optimistic about closing out 2026 with continued growth and profitability.

Lastly, before we continue the call, I want to take a moment to acknowledge individuals, businesses and communities across the Florida Panhandle who were impacted by the recent hurricane. Throughout the storm and afterwards, our teams worked diligently to support our clients and ensure they had access to the services and resources they needed. We remain a dedicated partner as recovery efforts continue, backed by the commitment of our team and the resilience of the clients and communities we are very privileged to serve.

With that, I'll invite Mike to make additional comments.

Michael Achary

Thanks, John. Good afternoon, everyone. As John mentioned, the company's performance in the third quarter was strong. Our adjusted net income was $134 million or $1.66 per share compared to net income of $127 million or $1.55 per share in the second quarter. Adjusted for expenses related to the OFD acquisition, PPNR for the company was up 6% from the prior quarter to $189 million. Express as a return on average assets, this continues to be a solid 2%.

Net interest income increased 7% this quarter. Our fee income businesses continue to perform well and expenses adjusted for costs associated with OFP were up but remained well controlled. The third quarter results reflect all expected onetime expenses related to the OFD acquisition.

As expected, our net interest margin was up this quarter with a 5 basis point increase from 3.56% to 3.61%. 4 basis points of the NIM increase resulted from the purchase accounting accretion related to the acquisition. The remaining increase was due to higher earning asset yields of 12 basis points overall. With the higher earning asset yield, we benefited from a higher yield on the bond portfolio and higher average earning asset levels as well as higher loan yields.

As expected, the yield on the bond portfolio was up 11 basis points to 3.46% related to the reinvestment principal cash flows during the quarter. Loan yields were up 11 basis points with a 10 basis point quarter-over-quarter increase in new loan rates and a healthy increase in average loans of $1.4 billion linked quarter or $299 million, excluding OFB. The company's cost of deposits was up 12 basis points to 1.55% for the quarter due mostly to increases in promotional rate pricing on our interest-bearing transaction deposits and certain CD maturity buckets, which drove an increase in our balances on those deposits. In turn, the cost of funds was up 8 basis points with lower average other borrowings driving the difference to the cost of deposits.

Switching to asset quality. Our criticized commercial loans improved for the seventh consecutive quarter, decreasing $7 million to $485 million. Nonaccrual loans did increase $19 million to $133 million. Net charge-offs came in at 16 basis points, so flat from the prior quarter. Our loan loss reserves remained solid at 1.42% of loans. We continue to expect net charge-offs to average loans will come in at between 15 and 25 basis points for the full year 2026.

Finally, on Slide 19 of the earnings deck, you'll see our forward guidance for both fourth quarter and full year 2026. We have included one rate hike of 25 basis points in December, but with minimum impact on our expectations. For the full year, we continue to expect loan and deposits to be up low double digits. We revised our guidance on net interest income to be up between 9% and 9.5%, fee income up between 5.5% and 6%, and both operating expenses and PPNR up between 8% and 8.5%.

Lastly, a comment on capital. TCE was 8.05%, down 173 basis points from the prior quarter. The largest drivers of that decrease resulted from the cash acquisition of OFD, third quarter share repurchases and a decrease in OCI. We did repurchase 1 million shares in the third quarter and have another 1 million shares remaining in this year's authority.

Coming into the quarter, the intention was to exhaust that authority during the fourth quarter. However, with the 10-year treasury at elevated levels and with an unprecedented 82 basis point increase over the course of the third quarter and with our TCE coming out of the quarter at 8.05%, will likely be on the sidelines with additional repurchases until there's a little bit more clarity about where rates go from here. As far as 2027 is concerned, we'll address that with our Board in December. But I'd say it's very likely that we'll have some authority in place for next year.

I will now turn the call back to John.

John Hairston

Thank you, Mike. Let's open the call for questions.

Operator

[Operator Instructions] Your first question comes from the line of Michael Rose from Raymond James.

질의응답

Michael Rose

Mike, maybe we can start with the margin. I think you expect some modest improvement in the fourth quarter on a core basis x OFB. But I did note, obviously, you guys noted that deposit costs were up. Just trying to get a better understanding of kind of the puts and takes here. And what the potential could be if we do get a rate hike beyond the 25% that you've modeled in, beta assumptions, all of the above.

Michael Achary

Sure thing, Mike. We'll be glad to. So first off, as far as any rate hikes in the fourth quarter, what we're assuming at this point is the Fed increases 25% in December. So any impact or any increase steadily in the quarter really will have a minimum impact, I think, on our numbers for the fourth quarter. Having said that, you guys know that we're modestly asset sensitive and certainly would benefit or will benefit from any increase in rates going forward.

Having said that, I think the big drivers as we come out of the third quarter into the first -- fourth quarter is, first and foremost, our continued ability to organically grow our balance sheet. Certainly, the third quarter results were a little noisy, inclusive of OFB, but aside from that, we were able to continue to organically grow the balance sheet. Loans grew 4% linked quarter annualized deposits, the better part of linked quarter annualized both of those numbers, excluding the impact of OFB.

So we would expect that kind of organic balance sheet growth at least to continue into the fourth quarter. So we're having really good success in growing especially our deposit base, certainly bringing in new customers and have kind of a nice roster of promotional rates out there that I think have been well received by folks. So we have promotional rates, both with CDs as well as money market accounts.

And again, as I mentioned, those have been pretty successful. And I think have driven the growth that we were able to show in the third quarter and what we're expecting in the fourth quarter. So that's first and foremost. We'll continue to reinvest cash flow coming out of the bond portfolio.

At these levels, we were able to reprice at a pretty nice margin. So for example, in the third quarter, we're looking at least $300 million of principal cash flow coming off at well below 4%, and the assumption is that we'll be able to reinvest that north of 5.5%. So that certainly that's a big driver. So we certainly do have higher deposit costs. We were in the third quarter compared to the second quarter. And for the fourth quarter, we're assuming probably a similar increase, all things equal.

And again, a lot of that is pointed at the promotional rates that I just mentioned. So all those factors combined put us in a position, again, we're able to grow our average earning assets and produce the levels of NIM expansion and NII that we're looking at for the fourth quarter. So for us, modest NIM expansion is probably somewhere between 3, 4, 5 basis points and then NII growing accordingly. So hopefully, that was helpful.

Michael Rose

Yes. A lot to unpack there, so I appreciate all the puts and takes there. Maybe just as one follow-up. How should we think about kind of underlying loan demand in production if we were to get more than another rate hike or two? I mean is there certain categories, I assume things like construction, maybe commercial real estate you might see a little slowdown, but then you've also added OFB, which I think has a pretty decent pipeline. So just talk to us about kind of ongoing levels of production and what that could mean in the context of potentially higher rates than what you've modeled.

John Hairston

Yes. Thanks, Michael. This is John. I'll take a swing at that one. First, I mean, there are puts and takes even from rate increases and as the tenure moves up on the good front, it does mean we see less payoffs, particularly in commercial real estate. So while there is certainly a downside that appetite for new projects could have if rates go up, just to say something more significant, like 50 to 100 basis points over the next couple of quarters, we'll see a dramatic pullback in payoffs. So the net benefit from being asset sensitive should overcome. It could be a little lesser production.

And as you did mention, we do have the additional resource coming from a pretty good lead number of net new bankers. And also the resources that came with very a fine organization in Orlando. So I think our tailwinds outweigh the headwinds just a bit. But since you mentioned sentiment, and just kind of how clients feel, I think we've cover before. Shane mentioned a couple of times on this call, but we do survey our client sentiment, particularly on the business side pretty frequently, particularly when the macro seems to have headlines that are changing every week or so.

And right now, the sentiment suggests both resilience and a ton of cautious optimism simply because the economy is still going quite well. Over the last few weeks, you could see even though sentiment is cautiously optimistic to our growth. Those clients are focusing a little more on the cost of energy, its impact on overall inflation and the Fed's response to that.

And so I think it would be fair to characterize our book is still being cautiously optimistic, but a growing focus on those factors. So if a quarter every couple of 3 months is probably not going to be that big a deal, in fact, may be a little helpful to the bottom line. But obviously, there's always some point where you kind of reached the proverbial's quell point where people begin to pull in their horns. And I think we're a little ways away from that and don't see that happening in Q4. Was that what you needed? Or do you need to redirect one more time?

Operator

Your next question comes from the line of Ben Gerlinger from Citi.

Benjamin Gerlinger

Just wanted to kind of follow up on the funding. I guess, the repricing aspect. If you look -- you guys included the table for OFB on Page 10, where balances from beginning of August to the end of September, they grew almost 6% over the 60-day window. If you look at kind of relative mix of deposits, you guys have drifted a little lower from OFB on their DDA. So in sort of like the mid 35%, 36%, 37%, you're now at 33% on DDA. I was just kind of curious how you guys think about DDA relative to the mix going forward and kind of juxtapose that against the growth opportunities in the kind of North Florida area?

Michael Achary

Yes. Great question, Ben, and I'll start, and John can certainly add some color. But I mean, obviously, we're very proud and think it's a huge benefit to our balance sheet to have the generous mix of noninterest-bearing deposits that we have. And it has fallen off a little bit in the last quarter. So we're at the range that you cited. And certainly, some of that is related to OFD coming on. I think their deposit mix was around or concentration of NIBs is around 22% or so. So that will bring us down a little bit.

But we do have certain seasonality impacts that impact that part of our deposit portfolio and especially during the third quarter. So we were down about $200 million in the period in DDA deposits. About 1/3 of that was, I think, related to OFB in terms of their money kind of being redirected elsewhere on the balance sheet, namely into money market accounts, probably taking advantage of the rates that we had there on a promotional basis.

The rest of the decline really was seasonal. Another 1/3 really related to our commercial and consumer customers, and we normally do see a seasonal impact in the third quarter and then certainly public funds, our public fund deposit book, around $3 billion, mostly interest-bearing transactions but a healthy amount of NIBs. And again, I think you do see kind of those seasonal impacts in the third quarter.

So we would expect a fair amount of the DDAs we lost in the third quarter to come back to us in the fourth quarter. Again, in the fourth quarter, we typically have a seasonal uptick both on the public fund side and the nonpublic fund side. So John, you may want to chat a little bit about our efforts to grow DDA to overall?

John Hairston

Sure. I'll be glad to, Ben. And if we don't cover the detail you're looking for, feel free to ask Ken. But generally speaking, we've been very proud of the componentry of the DDA book. We recognize that as we grow loans at a faster organic pace than we have for the last several years, our desire to have that funding puts a little pressure on the mix simply because these times, our clients are more focused on rate because it's available to them. So there's been a natural bit of flow out of DDAs into IBTs on our book. It's not a loss of deposits. It's really, as Mike called it, a redirect to IBTs.

That said, the cadre of offensive players we're adding. There's a pretty keen focus on adding treasury services folks. We are also in the hunt to create positions that are specifically focused on deposit only gathering to offer white glove treatment and onboarding operating accounts from a small and medium-sized businesses. So a little early to tell how successful that's going to be. But while we're adding folks, it's a good time, I think, to add those people that are focused more on deposits.

Having said that, when you look at Q3 with a 4% loan growth rate, 9% was more than we needed, and we're always glad to have it. Q4 is likely to outpace in deposit growth versus loans again. And so we'll enter the year 2027 with a very healthy amount of liquidity alone. And so I would anticipate we'll keep the foot on the gas with DDA growth. and then press a little harder growing loans as we enter into Q1 2027. Was that what you needed? Or would you like some more detail?

Benjamin Gerlinger

No, that was really helpful. But you did bring up the people you've hired. I know you brought a lot of bankers over the last 12, 18 months. Is the next focus only deposit focused? Or are these original people also deposit in your results adding kind of the treasury management kind of the bells and whistles associated with fees are lower-yielding deposits?

John Hairston

It's an addition to. And I know this is maybe too much shop talk, but when we add bankers, those bankers are typically our best reference to the folks who really get it done on the treasury side. So after 1.5 years, a pretty acute focus in adding bankers, I think we have a little bit better potential to add treasury folks that know those folks and know the ones that work well with them. And so we're in the business of identifying those folks and hopefully getting them to join the team as we move into next year.

We've added a few, but not as many as we'd like to. And so that will be part of the effort. We get into bankers, I mean the contribution from the hiring plan so far has been pretty strong. And we talked on the call about net new bankers, but obviously, there's also a fair amount of trading bankers going on. So when we look at the overall contribution of the new bankers we've added the beginning of last year, their contribution is a whopping 55% of year-to-date loan growth in 2026 and 77% of Q3.

So with a very efficient portfolio in terms of average carry for each of our bankers, adding those new folks that have some capacity is very meaningful. On the deposit front, that's 19% year-to-date and 15% for Q3. So the mix of recipe that creates really good profitability and a great balance sheet over the next couple of years, inclusive of DDAs, lies squarely in the quality of the people that we're adding both on a net basis and where we're simply making trades.

Operator

Your next question comes from the line of Will Jones from KBW.

Unknown Analyst

I wanted to ask just on growth. When you guys kind of think about the terms of your growth going forward, it felt like consistency, producing consistency is a very big -- been a very big focus for you guys. And we cast again, if you strip out OFB in that mid-single-digit range this quarter, you were able to do that in second and first quarter. And a lot of that is some of the new hiring we're talking about net new producers. But aside from just those new producers, how are you guys creating this culture of consistency within more of the legacy Hancock banker set?

John Hairston

Well, I'll start, and Mike and Chris may want to jump in there, too. But the notion of consistency or said a different way, the lack of volatility really extended to everything. We wanted to have to reduce volatility in earnings, volatility in provision volatility and growth and get to a pretty steady upward momentum, both on both sides of the balance sheet in NII and fee income and in overall credit. And so -- and that was a lot of years of doing a bit of derisking in the loan portfolio of adding concentration in markets that were more dependable.

Organic growth and making sure that we added players to our team that fit our culture. And so the reason our credit folks are involved in the hiring process is to ensure that we have as good a percentage of folks that joined the company that match up with our credit risk appetite and with our target operating models for portfolio so that we don't both end up disappointed us and the prospective associates.

So a lot of discipline around hiring. I think the second big part that was helpful there is trading a recruiting of our sales force just like recruiting the fine. So there is a pipeline for new associates. There are biweekly calls over who's the best channel we're running to in the markets that we're competing in. And the best people we know to know who are best bankers are across the Proverbial Street, our bankers that are doing battle in hand-to-hand compound every week in wool. And so I think identifying those was actually very careful.

So around the bank, there's a coin phrase called the One Bank onset. That one bank concept is the collegial operating agreements and then the practice of having that collegial operating style across all of our lines of business and credit. And so whether a person is focused on wealth, on credit, on commercial, on retail, any of those different sectors, while we do follow a line of business architecture, those folks all understand they're on one team. They do a lot of calling efforts together. They prospect together, they review client opportunities together.

And so as a result, our competition focus is really more externally pointed, not internally focused when it comes for competition for revenue and for clients. So that concept has worked very well so far. We see that growing and getting more effective and efficient over time. And as we add team members to the bank, the word we hear from them is typically refresh. So when they joined the company, they feel as if no matter what area they come into, they're welcome to a very broad team that's bigger than just their one area of focus in that particular line of business.

Unknown Analyst

Yes. That's great, John. Thanks for that thoughtful response. Mike, maybe a question for you on deposits. You talked about some of the success you had with some of the promotional offerings. Could you talk to us just about how much you were able to raise through these campaigns whether you anticipate kind of extending these out over the balance of the year? And maybe just general expectations for how that could play into deposit costs over the coming months.

Michael Achary

Sure, I'd be glad to. So the promotional rate programs, especially on the money market side, we're really putting into place towards the end of the second quarter. So if you go back and look at the cadence of growth in the second quarter you'll note that we really had a pretty significant end of period. And that was because, again, those campaigns were put in place later in the quarter.

So the growth over the third quarter has been a little bit more consistent because we've had those programs in place really from the get-go of the quarter. And certainly, when you look at our deposit costs and the kind of the expected data we have in the materials on Slide 15, you can see probably a little bit more of an increase in deposit costs and maybe people are used to seeing from us in an upgrade cycle.

And I think that's completely pointed at the commentary that John shared earlier, around building liquidity to support loan growth just for the quarter that we're in, but for 2, 3 quarters down the road and building that customer loyalty and that stickiness of deposits. So it is a little bit of a shift, I think, in our philosophy around how we look at deposit costs. And I think it's been pretty successful so far.

Unknown Analyst

Yes. Okay. That's great color. And last for me, maybe one housekeeping. The decline in tangible book value is maybe a little more significant than we were anticipating. Was there anything unique with it marks to happen? Or is that really all just kind of AOCI driven?

Michael Achary

No. I mean during the quarter, if you look at CCE and certainly, that plays down to tangible book share. The bigger inputs really was the cash price tag for OFD, the buybacks that we did during the quarter and then the OCI impact. So that was 59 basis points on TCE, 111 for OFB and about 22 in terms of the buyback. So I think it was just one of those quarters where a lot of those things just kind of aggregated up together and drove our TCE down to the 8.05% and then had the same impact on tangible book value per share.

Operator

Your next question comes from the line of Brett Rabatin from StoneX Group.

Brett Rabatin

I wanted to ask on the hires. I noticed that the number I think year-to-date through 3Q on Slide 17 shows 38 net new bankers hired as opposed to 42 last quarter. So I guess I'm just curious if you guys have fine-tuned some of the maybe the legacy lenders producers? Or any thoughts on the linked quarter change there to the downside?

John Hairston

Yes. This is John. I'll answer it. I mean it's a consistent push for talent. And I mean, right now, I think as of today, pending anything that happened today. We're at 42 right now. So any given couple of weeks spend. It may go up or down a few folks as we just go through the normal churn, but that number is 42 right now. I think on the last day of the quarter, it was 38. That's what's in the materials. But our expectation is that we still wrap the year at around 50.

And just as a reminder, that excludes the 20 bankers that were added as part of the One Florida gig on August 1. So if we can finish the year at or right there around 70, inclusive of One Florida, I think we'll be pleased with the net growth for the year, particularly given the contribution those folks are rising.

Brett Rabatin

Okay. That's helpful. And then just I want to make sure I understood the kind of the narrative on the margin going forward versus the increase in the cost of funds from here? And if I heard correctly, Mike, it sounds like you're expecting the cost of funds to have a similar trend upward in 4Q than 3Q? Is that a fair assessment? And then just kind of wondering your cost of funds is pretty low relative to what market rates are. And so I was just curious if there was any thoughts on, hey, maybe the beta might pick up at some point in '27 on the deposit side?

Michael Achary

Sure. So yes, you're absolutely reading that correctly. So our cost of deposits, I'll focus on that was up 12 basis points quarter-over-quarter. And for the fourth quarter, we're expecting something in that neighborhood, maybe a basis point or 2 more. And again, that's really a carryforward of the promotional programs that I mentioned earlier. And as far as our betas are concerned, again, we have that information in the deck, and those are expectations and approximate ranges.

But we would expect to hit those or come pretty close, given kind of our normal rate increase cycle. And right now, again, we've got the 125 basis point bump in December. And at this point, I mean, who knows for next year in terms of '27 is concerned. But overall, we'll benefit from rate increases. We'll see our NIM and NII levels continue to modestly increase based on that component as well as our ability to consistently grow the balance sheet organically as we kind of mentioned earlier.

Operator

Your next question comes from the line of Jared Shaw from Barclays.

Unknown Analyst

This is John Rau on for Jared. Just looking at the -- just looking at the sources of loan growth. And it looks like energy loans were still down. I know that was an area that's been deemphasized. But just given the backdrop, I'm wondering if either your stance around that segment or customer demand in that segment has changed.

John Hairston

Yes. Is the question about what our posture is on energy growth. Did I hear you right?

Unknown Analyst

Yes. Yes.

John Hairston

No, it's -- I mean, look, it's a great business to be in after we exited RBL and streaming services, principally several years ago. We really haven't had an appetite to get back in never say never, but at this point in time, that total concentration is well below 1%. And it will stay below. So in terms of actually growing the loan book, what anticipate the bigger contributors for fourth quarter to be -- would be commercial real estate, a pretty good bounce back given the condition payoffs and a lot of new projects coming on.

Health care. And I think we're likely to see a pretty good chunk of C&I come in. A little too early to tell, but October starting off as expected, but I think we'll finish at the mid-single level for the quarter.

Unknown Analyst

Okay. Great. That's helpful. And then thinking about the treasury management business, it sounds like that's becoming even more of a focus. I know that part of the -- part of what attracted you to the One Florida bank as their treasury management platform was pretty advanced, I guess, relative to the size has I guess, just how integrating their platform and strategy into the overall handcut platform has progressed and the deal close?

John Hairston

Sure. Glad. This is still John. One Florida, it's a good observation. As a relatively new bank, they had done a really terrific job building out a treasury function primarily because they had to. I mean they're in a hot market. Organic loan growth is terrific. And at the compounded annual growth rate they had, getting a 22% free money component and their deposit book when a bank that young was actually quite impressive.

And so when we look at sort of the core philosophy they have on the treasury offering, very similar to ours. So there really weren't a lot of differences. Their technical platforms a little different just given the vendor they chose. We don't really anticipate any meaningful difference. And finally, the only thing that was really a principal difference is they have given where they operate at a pretty mature homeowner association banking realty that we have adopted and will expand to those markets across our footprint that have a heavy POA depository in some case a borrowing needs. So we are adopting that in rate.

Operator

Your next question comes from the line of Feddie Strickland from Hovde Group.

Feddie Strickland

Just to ask from kind of a 50,000-foot view of the footprint, there's been a lot of headlines about manufacturing and data center and other investments kind of in the center of the legacy footprint in Mississippi and Louisiana, do you feel like that could change the gain for growth in some of those areas? Or does that seem like it's more incremental at this point?

John Hairston

This is John. Thanks for the regional observation. That's a good free commercial for the call. It is a game changer. I think it's -- we're seeing organic growth rates in Mississippi and Louisiana that clearly have ticked upward a good bit A lot of that work, which is industrial contracting and subcontracting related has been awarded to local and local ish players. So it's been very beneficial. I certainly hoped that we saw a lot more line of credit-related business out of that.

The hyperscalers are very friendly in terms of terms for payment. They typically prepay a pretty good chunk upfront on what's expected. And so that's being passed all the way down from the industrial master providers to the subcontractors. And so as a result, everybody is getting paid pretty timely. And so we're seeing more of an impact on the depository basis than we are the loan basis right now.

As those projects begin to come into fruition and go into just care and feeding, that will probably reverse itself and we see more borrowing opportunities. But the infrastructure adds that are coming along with those projects are clearly a plus up. The tax revenue to the educational system and quality of life provision for the parishes and counties that those data centers are near or in is a windfall for those market areas. And so as a result, we couldn't be happier to see that type of development within our footprint and hope to take more advantage of it in the future.

Feddie Strickland

Got it. Yes. Maybe the hypersialation get the AI to figure out Southern Access a little better for my name to the AI agent on the call.

John Hairston

Yes. I think the cautionary part is really just how many of these hyperscalers actually win the race. So we pay close attention to that. I think that's the reason the industrial folks have negotiated good payment terms is to ensure that we don't see the types of issues that happen when solar -- when battery plants were running wide and suddenly, there was a political for change, and that stopped quickly. Some of those folks got hung out with problems and that lesson got learned on the high on data center construction.

So I think they're approaching it much more conservatively and appropriately so. So I think the downside looks pretty low. You didn't mention SpaceX, but obviously, in Louisiana, that's a big project in an area that has not received a whole lot of a good tax revenue news. So that will be very impactful to that part of Louisiana, we welcome that project as well.

Feddie Strickland

I appreciate the color on that. And just one more for me. I just wanted to ask about M&A appetite here with the deal closed, I mean, is that something that you're looking at doing? Or do you feel like you have enough organic growth opportunity that's going to M&A are not really necessary?

Michael Achary

Well, certainly, this is Mike. Certainly, the focus continues to be organic, balance sheet growth and again, we're thrilled with the success that we've been able to enjoy thus far and certainly, the effort and the intensity will continue along that front. As far as M&A is concerned, I mean, we just closed OFB and we have the conversion coming up soon. So those are the things we're focused on M&A-wise right now. And aside from that, it's something that we'll continue to look at really through more of an opportunistic lens, I think, more than anything else.

Operator

Your next question comes from the line of Gary Tenner from D.A. Davidson.

Gary Tenner

I had just a follow-up as it relates to the AOCI impact and the buyback. When you announced the One Florida deal, as I recall, it was somewhere around an 8-quarter window to kind of return TCE ratios back to where they were, and I was assuming that you utilized the full buyback. Obviously, the AOCI impact changes that for the fourth quarter. But could you kind of talk about the time line in terms of -- have there been any changes excluding AOCI in terms of kind of growing tangible common equity over the next call it, 6 or 8 quarters? And as a 9% TCE kind of the assumption we should be thinking about for when you'd be ready or willing to reengage with the buyback?

Michael Achary

Yes. Great question, Gary. So short answer is no, nothing has changed. Coming out of OFB, the intent was, as I mentioned in the prepared comments, was to exhaust the authority of the second half of the year. we bought back the 1 million shares in the third quarter. And the intent coming into the fourth quarter was to do that once again. And the step back is really just related to where longer-term rates have gone and certainly cognizant of where our TCE is at 8.05%. And all things equal, the preference would be not to let that go below 8%. That's kind of our cultural threshold, if you will.

But certainly, when we look at common Tier 1, where the OCI is not impactful. We're strong at 11.53%. Our comfort zone there is probably closer to 12%, maybe 12.5%, and we should be pretty much knocking on the door of a 12% Common Tier 1 by the end of the year. As far as TCE is concerned, we think we'll be able to grow that 25, 30 basis points across the third quarter, excluding any buybacks. But again, we're going to be very cognizant and very vigilant in terms of rates, and we'll also be opportunistic. So certainly, that's something we'll pay very, very close attention to.

Operator

Your next question comes from the line of Stephen Scouten from Piper Sandler.

Stephen Scouten

Serious with the percentage of SNC loans where it is now with the inclusion of OFB, if that's something that could be back on the table to help facilitate additional organic growth at this point?

John Hairston

Yes. Thanks for the question. This is John. Great observation. It's down to about 8.6%, I think, for the end of the quarter. It's about $100 million in outstandings lighter than the prior quarter. So the big driver in the percentage step down was really just the addition of the denominator coming from One Florida's August 1 close. So I think it's fair to characterize that as a little bit of a tailwind and that we could grow it inside our self-imposed 10% line of demarcation.

That being said, we're not going to run out and try to do a $100 million-dollar system because we can. I think right now, we're selecting the credits that we feel like match up yield expectations and our credit risk appetite. I think it's more a matter of we would not curtail the syndications business because of the threshold because we're so far from it. But at the same time, it's not going to change our credit risk appetite in terms of the premium desires to grow relationship business. But with a pretty strong syndications desk set up, we would not mind enhancing our fee intake from handling some of those over the next several quarters. So yes, it's a little bit more of a tailwind, but I wouldn't look for a wholesale change on our posture.

Stephen Scouten

Understood. That's helpful. And then, Mike, could you speak to any changes in thoughts around the hedging strategy? I noticed there were some more cash flow hedges put on, was that maybe just opportunistic given the cost of downside protection? Or just curious on what the ideology is there and how that might impact with rate hikes and the like.

Michael Achary

Yes. So excellent question. So we use our cash flow hedges along with the fair value hedges to kind of control and mitigate some of our asset sensitivity and try not to let that get to outside so our policies call for certain levels of hedges. And I think what you saw this quarter in terms of us adding a couple of hundred million, just kind of rightsizing that to levels that we view to be appropriate for what we're trying to accomplish with the policy and program.

Operator

At this time, there are no further questions. I would like to turn the call back to John Hairston for closing remarks.

John Hairston

Thank you, Jay, for moderating the call. Thanks, everyone, for attending on a busy, busy release day. We look forward to seeing you on the road in the next several weeks.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.