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Banks (Finance)

Moody's Places Hancock Whitney Corporation and Subsidiary Bank on Review for Upgrade

Strategic Insights

— 1 min read

Moody's Ratings has announced that it has placed Hancock Whitney Corporation and its subsidiary, Hancock Whitney Bank, on review for upgrade, focusing on the sustainability of their improved capitalization and strong profitability, as well as the potential credit implications of the bank's multi-year growth plan.

Key Takeaways:

  • Moody's has placed Hancock Whitney Corporation's long-term ratings and assessments, including its long-term local currency issuer and subordinate debt ratings of Baa3, on review for upgrade.
  • The review will focus on the bank's ability to sustain its improved capitalization and profitability, as well as the potential credit implications of its multi-year growth plan.
  • Hancock Whitney has seen significant improvements in its capital and profitability over the past two years, with tangible common equity over risk-weighted assets (TCE/RWA) increasing by 230 basis points to 13.6% at 30 June 2025.
  • The bank's funding profile is a rating strength, driven by its strong core deposit base and low reliance on market funding, but faster loan growth could force the bank to increase its reliance on higher-cost deposits or market funding, which would be credit negative.
  • Liquid resources are a weakness, with liquid banking assets (LBA) to tangible banking assets (TBA) around 23%, materially lower than the rated peer median.
  • Factors that could lead to an upgrade include sustained capital and profitability, reduced reliance on market funding, and improved liquidity, while downward rating pressure is unlikely over the next 12-18 months.

Statistics:

  • Hancock Whitney's tangible common equity (TCE) over risk-weighted assets (RWA) was 13.6% at 30 June 2025, 230 basis points higher than it was at 30 June 2023.
  • The bank's liquidity resources are a weakness, with LBA/TBA around 23%, materially lower than the rated peer median.
  • The bank's funding profile is a rating strength, driven by its strong core deposit base and low reliance on market funding.

Sources:

  • Moody's Investors Service - Moody's Places Hancock Whitney Corporation and Subsidiary Bank on Review for Upgrade (no date provided)

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