HWC Stock Forecast & Price Target

Hancock Whitney Corp demonstrates a positive outlook supported by an increase in non-interest-bearing (NIB) deposits by 1% quarter-over-quarter and an expected year-over-year fee income growth of 3.5% - 4.5% for 2024, which positions the company for solid financial performance. The capital levels are robust, highlighted by a Common Equity Tier 1 (CET 1) ratio of 14.1%, and management anticipates a continued expansion of net interest margin (NIM) along with a net interest income (NII) increase of 3.5% - 4.5%, surpassing market consensus. Furthermore, the company is actively pursuing organic growth through the hiring of additional revenue-generating associates and expanding its geographical reach in Florida and Texas, thus enhancing its operational capabilities and market presence.

Hancock Whitney Corp is experiencing a decline in loan balances, with a reported decrease of 3% quarter-over-quarter, which is below expectations for flat performance, signaling potential revenue challenges ahead. The economic climate presents asset quality risks, as a slowdown could lead to an increase in nonperforming assets and net charge-offs, posing further threats to net income and earnings per share estimates. Additionally, the company's net interest margin is under pressure due to declining rates on new loans, compounded by potential operational and financial risks associated with its acquisition strategy and elevated lending exposures in historically vulnerable sectors.