HWC Stock Forecast & Price Target

Hancock Whitney is making a strategic move with its acquisition of One Florida Bank, providing a targeted entry into the growing Orlando market and expanding its strategic benefits through the Sabal platform. This acquisition is expected to be high single-digit EPS accretive in 2027 and to improve projected 2027 ROTCE by ~170bp. The company is also maintaining strong capital ratios and continuing its share repurchase, which could provide additional upside potential.

Hancock Whitney is facing challenges in terms of loan growth, with only a 0.6% increase in 1Q and unexpected prepayments hindering growth. Despite strong profitability and a best-in-class deposit base, the stock may not see much upside until loan growth inflects, which management believes will happen with their continued hiring activity. There are also concerns about net interest margin expansion slowing down in the future, despite an impressive 7 basis point increase in 1Q26. With potential headwinds from maturing CDs and reinvesting cash flows at lower rates, it may be difficult for the bank to maintain the recent pace of NIM expansion, which could limit further earnings growth.