HWC Stock Forecast & Price Target

Hancock Whitney Corporation is demonstrating positive financial trends, with non-interest-bearing (NIB) deposits increasing by 1% quarter-over-quarter and projected fee income growth of 3.5% - 4.5% year-over-year, amounting to an adjusted fee income of $364 million in 2024. The company is also experiencing improvement in its capital metrics, reflected in a CET1 ratio of 14.1%, and anticipates modest net interest margin (NIM) expansion with net interest income (NII) growth of 3.5% - 4.5% year-over-year, exceeding consensus estimates. Furthermore, Hancock Whitney's commitment to organic growth, including the hiring of revenue-generating associates and expansion into new markets in Florida and Texas, underscores its strategic focus on enhancing its operational footprint and revenue potential.

Hancock Whitney Corp is facing a negative outlook due to a decrease in end-of-period loan balances, which declined by 3% quarter-over-quarter, falling below forecasts of stability. Additionally, significant compression in the interest rate spread and the possibility of an inverted yield curve raise concerns about future earnings shortfalls, particularly as low-interest-rate environments would further compress the bank's net interest margin. Moreover, economic slowdowns could exacerbate asset quality risks, leading to higher nonperforming assets and net charge-offs that threaten to diminish net income relative to expectations.