Hancock Whitney earnings declined in the third quarter of 2026 as charges tied to its One Florida Bank acquisition outweighed stronger adjusted profitability. The bank reported on October 20 that net income totaled $110.1 million, or $1.36 per diluted share, compared with $127.0 million, or $1.55 per share, in the second quarter.
Key Takeaways
- Acquisition-related charges reduced reported EPS by $0.30; adjusted EPS rose to $1.66.
- The One Florida Bank acquisition accounted for most of the quarterly increase in loans and deposits.
- Net interest margin widened, while credit-quality measures were mixed and capital ratios declined.
Table of Contents
- Hancock Whitney earnings diverge on reported and adjusted bases
- Acquisition drives balance-sheet growth
- Wider interest margin offsets weaker fee income
- Credit signals mix as capital ratios decline
- Conclusion
Hancock Whitney earnings diverge on reported and adjusted bases
The company’s third-quarter 2026 results announcement showed reported profit also fell from $127.5 million, or $1.49 per diluted share, a year earlier. Hancock Whitney completed its acquisition of OFB Bancshares, the parent of One Florida Bank, on August 1, 2026.
The quarter included $30.4 million in pretax acquisition-related supplemental disclosure items, equivalent to $0.30 per share after tax. Excluding those items, adjusted net income was $134.1 million and adjusted EPS was $1.66, up $0.11 from the preceding quarter. Neither comparison quarter contained supplemental disclosure items.
Adjusted earnings are a non-GAAP measure, not additional profit. The distinction matters this quarter because reported earnings declined while profitability excluding the specified acquisition items improved. Adjusted pre-provision net revenue increased 6% sequentially to $189.3 million.
| Item | Details |
|---|---|
| Estimated common equity Tier 1 ratio | 11.53% at September 30, versus 13.19% at June 30, 2026 |
| Tangible common equity ratio | 8.05%, versus 9.78% in the preceding quarter |
| Common stockholders’ equity | $4.2 billion, down $209.8 million from June 30 |
| Cumulative program repurchases | 3,112,966 shares under the current buyback authorization |
Acquisition drives balance-sheet growth
Loans reached $26.5 billion at September 30, up $2.0 billion from June 30. That increase included $1.7 billion of loans acquired from One Florida Bank, alongside commercial real estate and equipment-finance growth.
Deposits rose $2.5 billion to $32.2 billion, including $1.9 billion acquired in the transaction. The acquisition therefore explains most, but not all, of the headline balance-sheet expansion; the total increases should not be read as purely organic growth.
Noninterest-bearing deposits totaled $10.6 billion, or 33% of period-end deposits. They increased $217.9 million overall, less than the $418.7 million added through the acquisition.
Wider interest margin offsets weaker fee income
Tax-equivalent net interest income increased 7% from the second quarter to $314.9 million. Net interest margin widened five basis points to 3.61%, including a four-basis-point contribution from acquisition-related purchase-accounting accretion.
Changes in earning-asset yield and mix and lower borrowings also supported margin, while higher deposit costs offset part of those benefits. This means the improvement reflected both operating factors and acquisition accounting.
Noninterest income declined $1.4 million to $107.0 million, with lower trust fees, investment and insurance income, and secondary-mortgage fees. Noninterest expense rose 16% to $262.0 million, including $29.4 million in acquisition-related supplemental items and $5.8 million of post-acquisition One Florida Bank expenses.
Credit signals mix as capital ratios decline
Criticized commercial loans fell to $485.3 million from $492.0 million in the second quarter, but nonaccrual loans increased to $133.3 million from $113.7 million. The allowance for credit losses remained at 1.42% of period-end loans.
The credit-loss provision increased to $16.1 million from $13.8 million, including a $1.0 million acquisition-related item for unfunded commitments. Annualized net charge-offs held steady at 0.16% of average loans.
Capital ratios declined during the quarter, and Hancock Whitney repurchased one million common shares at an average price of $77.91. Its existing repurchase authorization expires on December 31, 2026.
Conclusion
The quarter combined lower reported profit with higher adjusted earnings and acquisition-led growth. The next confirmed capital-management deadline is December 31, 2026, when the existing share-repurchase authorization expires.
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