Hancock Whitney Q3 2026 Earnings: OFB Costs Weigh on GAAP EPS

Hancock Whitney (Nasdaq: HWC) generated approximately $420.1 million of Q3 2026 GAAP revenue for the quarter ended September 30, calculated as net interest income plus noninterest income, up about 8.9% from $385.7 million a year earlier, while diluted EPS declined to $1.36 from $1.49. The One Florida Bank acquisition expanded loans and deposits but added $30.4 million of pretax supplemental items; excluding those items, adjusted EPS was $1.66.

Core Earnings Data

Revenue growth came primarily from net interest income, which rose 11.9% year over year, while noninterest income was nearly unchanged. Noninterest expense increased more quickly than revenue because the quarter included OFB acquisition costs and post-acquisition operating expenses.

Reported net income consequently fell 13.7% to $110.1 million. The company recorded adjusted net income of $134.1 million after excluding supplemental disclosure items.

Calculated revenue equals GAAP net interest income plus noninterest income. Taxable-equivalent measures adjust certain tax-exempt interest income to improve comparability.

OFB Expanded the Balance Sheet but Reduced Reported Profit

Hancock Whitney completed its acquisition of OFB Bancshares, the parent of One Florida Bank, on August 1. Period-end loans increased $2.0 billion, or 8%, from the previous quarter to $26.5 billion, with $1.7 billion coming from acquired OFB loans. The remaining growth included commercial real estate and equipment finance activity.

Deposits increased $2.5 billion, or 9%, to $32.2 billion, including $1.9 billion acquired from OFB. The acquisition therefore accounted for most of the sequential loan and deposit growth, making the separation between acquired and legacy growth important when assessing future quarters.

The transaction also created $30.4 million of pretax supplemental items, consisting of $29.4 million of acquisition expense and a $1.0 million provision for acquired unfunded commitments. These items reduced EPS by $0.30. Excluding them, adjusted EPS rose 7% sequentially to $1.66 from $1.55, and adjusted pre-provision net revenue increased 6% to $189.3 million.

Margin Expansion Faced Higher Deposit Costs

Taxable-equivalent net interest income increased 7% sequentially to $314.9 million, while net interest margin rose five basis points to 3.61%. OFB purchase-accounting accretion contributed four basis points, other borrowings added one basis point, and earning-asset yield and mix contributed eight basis points. An eight-basis-point drag from higher deposit costs offset part of those benefits.

Interest-bearing transaction and savings deposits increased 19% sequentially to $15.5 billion, including $1.2 billion acquired from OFB. Hancock Whitney attributed the remaining increase partly to competitive products and pricing, indicating that deposit growth carried a funding cost. Noninterest-bearing deposits represented 33% of total deposits at quarter-end.

On the company’s adjusted definition, the efficiency ratio improved to 54.46% from 55.31% in the previous quarter. This improvement excludes supplemental acquisition items and purchased-intangible amortization, whereas GAAP noninterest expense rose 16% sequentially to $262.0 million.

Credit Quality and Capital

Credit indicators were mixed. Criticized commercial loans declined by $6.7 million to $485.3 million, representing 2.29% of commercial loans versus 2.55% in the previous quarter. Nonaccrual loans, however, increased to $133.3 million from $113.7 million, and their share of total loans rose to 0.50% from 0.46%.

The allowance for credit losses increased $27.8 million to $375.8 million, including $21.9 million recorded through purchase accounting for OFB loans. Allowance coverage remained unchanged sequentially at 1.42% of period-end loans. Net charge-offs were $10.2 million, with the annualized charge-off ratio holding at 0.16%.

Capital ratios declined during the quarter. The estimated CET1 ratio fell to 11.53% from 13.19%, while the tangible common equity ratio decreased to 8.05% from 9.78%. Common stockholders’ equity declined 5% sequentially to $4.2 billion. Hancock Whitney also repurchased one million shares at an average price of $77.91 during the quarter, bringing cumulative repurchases under the current program to approximately 3.1 million shares.

Risks Investors Need to Watch

• Acquisition integration: OFB supplied most of the quarter’s sequential loan and deposit growth while also adding acquisition charges and post-acquisition operating expenses. Future results will need to distinguish acquired balances from legacy growth.
• Deposit pricing pressure: Higher deposit costs reduced net interest margin by eight basis points, offsetting benefits from asset yields, purchase-accounting accretion, and borrowing levels.
• Mixed credit trends: Criticized commercial loans declined, but nonaccrual loans and the provision for credit losses increased. Further movement in nonaccrual balances could affect provisions and earnings.
• Lower capital ratios: CET1 and tangible common equity ratios both fell materially from the previous quarter, making capital rebuilding and future capital allocation relevant areas to monitor.

Summary

Hancock Whitney’s Q3 2026 results reflected the two-sided impact of the OFB acquisition: it expanded the balance sheet and supported net interest income, but transaction costs reduced GAAP earnings and capital ratios. Adjusted EPS, adjusted pre-provision revenue, net interest margin, and efficiency improved sequentially, while higher deposit costs and rising nonaccrual loans remain important counterweights. The next key question is how much growth and profitability the combined bank can produce after acquisition effects and supplemental costs subside.