Hancock Whitney Corporation

Second quarter net income was $127 million, or $1.55 per share, versus adjusted net income of $125 million, or $1.52 per share, in the prior quarter. PPNR increased 3% sequentially to $178 million. Net interest income increased 3% quarter over quarter, fee income increased $2.3 million, or 2% adjusted for last quarter’s bond portfolio restructuring loss, and expenses increased 2%. Net interest margin rose 1 basis point to 3.56%, the bond portfolio yield rose to 3.35%, and the cost of deposits fell 4 basis points to 1.43%. Year over year, management said EPS improved 13%, PPNR grew 6%, loans grew 5%, and total deposits grew 2%. Credit metrics remained solid with criticized commercial loans down $30 million to $492 million, nonaccrual loans at $114 million, net charge-offs at 16 bps, and reserves at 1.42% of loans. For full-year 2026, standalone loan growth guidance remains mid-single digits and deposit growth guidance was raised from low-single to mid-single digits; including OFB, management expects loans and deposits up low double digits, NII up 8% to 9%, fee income up 6% to 7%, expenses up 7.5% to 8.5%, and PPNR up 7% to 8%.

John Hairston framed the quarter as another strong period of profitability, efficiency, and capital return, with balance sheet growth on both sides and momentum across the franchise. He emphasized disciplined execution, strong core deposit funding, and the company’s ability to keep growing while maintaining high profitability. He also highlighted the 1 Florida acquisition, saying the company is excited to welcome those clients and colleagues and that the second half of 2026 should continue to show strong capital and growth.

Michael Achary highlighted $127 million of net income, $1.55 EPS, and $178 million of PPNR, with NII up 3% and expenses up 2% quarter over quarter. He said NIM moved from 3.55% to 3.56%, the cost of deposits fell to 1.43%, and the bond portfolio yield rose 12 bps to 3.35%; he also noted criticized commercial loans improved to $492 million, nonaccrual loans were $114 million, net charge-offs were 16 bps, and reserves were 1.42% of loans. On capital, he said the company plans to exhaust the current buyback authorization, with about 2 million shares remaining, and described common equity Tier 1 and TCE as remaining at comfortable levels even after OFB closes.

Analysts focused on whether loan growth would slow after a strong quarter and whether competition was pressuring pricing. Management said demand remains cautious, supply is abundant, pricing is highly competitive, and the Q2 growth was high quality and spread across businesses; they also said the second half should still deliver mid-single-digit loan growth, with deposits stepping up as well. Questions on deposit costs and margin led management to say deposit competition is rational but elevated, promotional CD and money market pricing is in place, cost of deposits could rise about 10 bps in the second half, and NIM should be flat to slightly up. On 1 Florida, management said the regulatory approval timeline was expected, integration should run through mid-to-late Q4, and cost saves should be fully reflected as 2027 begins.