HWC

Hancock Whitney came into this earnings season with a reputation as a disciplined Gulf Coast lender trading on a premium P/E multiple with a story about quality and consistency. The Q3 2026 report kept that quality theme intact, yet the stock slipped about 2.5% to around US$72 after the release. The market focused on a softer quarterly earnings per share print of US$1.37 and a trailing net margin that is lower than a year ago. The business instead highlighted something else. Total revenue of US$404 million and a higher 3.61% net interest margin showed a bank still quietly leaning on spread income and loan growth while sentiment reset in the share price. Like Hancock Whitney's solid net interest margin but concerned about softer earnings and compression in net profitability? Consider screening for banks that combine resilient spread income with stronger recent profitability trends in our list of solid balance sheet and fundamentals stocks (25 results) - Total Revenue (Q3 2026 vs. Q3 2025): US$404.0 million vs. US$372.0 million (higher year on year) - Net Income ex. Extra Items (Q3 2026 vs. Q3 2025): US$109.8 million vs. US$126.9 million (lower year on year) - Basic EPS (Q3 2026 vs. Q3 2025): US$1.37 vs. US$1.50 (declined year on year) - Net Interest Margin, NIM (Q3 2026 vs. Q3 2025): 3.61% vs. 3.49% (modestly higher year on year) Earnings only tell part of Hancock Whitney's story, because cash flows often give a cleaner read on what the underlying franchise might be worth over time. When you look at Hancock Whitney's cash generation on its own, the stock could be a hefty 49% undervalued. The upbeat case focuses on Hancock Whitney turning hiring, repricing and deals into steadier growth and earnings power. "Hancock Whitney plans to continue its program of hiring revenue producing bankers, with 42 net new hires already in place by the first half of 2026 toward a goal of 50 additions for the year. This is already contributing a material share of new loan production and can support revenue and fee growth." Q3 results align with that ambition. Organic loan balances grew at roughly 4% annualized and management kept full year loan and deposit growth guidance in the low double digits. Noninterest income guidance of about 5.5% to 6% growth and commentary around Sabal Trust and cards indicate that fee lines are also contributing. The more cautious view is that weak execution and integration risk could outweigh these growth projects. "Loan growth relies heavily on the aggressive hiring program, including the 42 net new revenue producing bankers already added in the first half of 2026. If these hires do not continue to generate sufficient quality loan and fee business then revenue growth and earnings could fall short of expectations." Q3 EPS of US$1.37 and lower net income year on year indicate pressure on reported profitability even as hiring costs flow through expenses. The efficiency ratio near 54.5% is solid but not best in class, and tangible common equity declined after the One Florida Bank purchase and share buybacks. Management paused repurchases, which signals some capital strain. One Narrative disagrees with today's price. → See where this Narrative says Hancock Whitney should trade. Hancock Whitney shows how a clear focus on spreads and growth still leaves open questions about execution and capital use. The real opportunity sits in finding stocks that could be undervalued before sentiment catches up. - Company 1 - 36% below our estimate - builds local payment rails that major online platforms use to reach customers in harder to access markets. - Company 2 - 40% below our estimate - expands niche deposit verticals and a refreshed payments platform to convert heavier technology spending into fee growth and operating leverage. - Company 3 - 26% below our estimate - sells weight loss and diabetes injectables that healthcare buyers increasingly favour as prescriptions move toward higher demand therapies. That is three of the list. See the full list of 33 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HWC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. - Adjusted Net Income: $134 million, or $1.66 per share, versus $127 million, or $1.55 per share, in Q2. - Adjusted EPS Growth: Up 17% year over year (adjusting for acquisition-related expenses). - PPNR: $189 million, up 6% from the prior quarter and 8% year over year; 2% return on average assets. - Net Interest Income: Increased 7% this quarter. - Net Interest Margin: 3.61%, up 5 basis points from 3.56% (4 bps from purchase accounting accretion). - Bond Portfolio Yield: Up 11 basis points to 3.46%. - Loan Yields: Up 11 basis points; new loan rates up 10 basis points quarter over quarter. - Average Loans: Up $1.4 billion linked quarter, or $299 million excluding One Florida Bank. - Loan Growth: 4% annualized excluding One Florida acquired loans; full-year guidance unchanged at low double digits. - Deposit Growth: 9% annualized excluding One Florida acquired deposits; full-year guidance unchanged at low double digits. - Cost of Deposits: Up 12 basis points to 1.55%. - Cost of Funds: Up 8 basis points. - Criticized Commercial Loans: Improved for seventh consecutive quarter, down $7 million to $485 million. - Nonaccrual Loans: Increased $19 million to $133 million. - Net Charge-Offs: 16 basis points, flat from prior quarter; full-year 2026 guidance of 1525 basis points. - ACL Coverage: 1.42% of loans. - Efficiency Ratio: 54.46% (adjusted). - ROA: 1.41% (adjusted). - ROTCE: 16.4%. - TCE Ratio: 8.05%, down 173 basis points from prior quarter. - Share Repurchases: 1 million shares repurchased in Q3; 1 million shares remaining in 2026 authority. - Full-Year 2026 Guidance: Net interest income up 9%9.5%; fee income up 5.5%6%; operating expenses and PPNR each up 8%8.5%. - Warning! GuruFocus has detected 7 Warning Sign with HWC. - Is HWC fairly valued? Test your thesis with our free DCF calculator. Release Date: October 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Adjusted EPS improved 17% and PPNR grew 8% year-over-year, with adjusted ROA of 1.41%, efficiency ratio of 54.46%, and ROTCE of 16.4%. - Loan growth met expectations at 4% annualized excluding One Florida, with strong production in commercial real estate and equipment finance; full-year guidance remains low double-digit. - Deposit growth was strong at 9% annualized excluding One Florida, led by interest-bearing transaction accounts, and continues to fund loan growth. - Criticized loans improved for the seventh consecutive quarter, decreasing $7 million to $485 million, while ACL coverage remains solid at 1.42%. - Net interest margin increased 5 basis points to 3.61%, and net interest income rose 7%, with further modest NIM expansion expected in Q4. - Nonaccrual loans increased $19 million to $133 million, signaling some credit deterioration. - Cost of deposits rose 12 basis points to 1.55% due to promotional pricing, with a similar increase expected in Q4, pressuring margins. - TCE ratio fell 173 basis points to 8.05%, driven by the cash acquisition of One Florida, share repurchases, and a decrease in OCI. - Share repurchases are likely paused until rate clarity improves, with TCE nearing the 8% threshold, limiting capital return near-term. - DDA balances declined $200 million in Q3, with about one-third from One Florida customers shifting to money market accounts and the rest seasonal, raising funding mix concerns. Q: With deposit costs rising, what is the outlook for the net interest margin (NIM) and net interest income (NII) in the fourth quarter, especially considering potential rate hikes? A: CFO Michael Achary explained that they expect modest NIM expansion of 3-5 basis points in Q4. This will be driven by organic balance sheet growth, including a 4% annualized loan growth and 9% deposit growth (excluding the acquisition), and by reinvesting bond portfolio cash flows from yields below 4% into rates north of 5.5%. While deposit costs are expected to rise another 12-14 basis points due to promotional rates, the company's modest asset sensitivity should benefit from rate hikes. Q: Can you discuss the drivers behind the strong loan growth and the contribution from new banker hires? A: CEO John Hairston highlighted that loan growth was driven by commercial real estate and equipment finance. He noted the significant impact of new hires, stating that bankers added since the beginning of last year contributed 55% of year-to-date loan growth in 2026 and 77% in the third quarter alone. This strategy of adding talented producers is a key part of their plan for consistent growth. Q: What is the company's appetite for M&A following the close of the One Florida Bank (OFB) acquisition? A: CFO Michael Achary stated that the primary focus remains on organic balance sheet growth. Regarding M&A, he noted that the immediate priority is the upcoming conversion of OFB. He added that the company will continue to look at M&A opportunities through an "opportunistic lens" rather than as a primary strategy. Q: How should we think about the decline in the tangible common equity (TCE) ratio and the potential for future share repurchases? A: CFO Michael Achary explained that the TCE ratio decline to 8.05% was due to the cash acquisition of OFB, third-quarter share repurchases, and a decrease in OCI from rising long-term rates. While the original plan was to repurchase more shares in Q4, the company will likely "be on the sidelines" until there is more clarity on rates, preferring to keep TCE above their 8% threshold. Q: What is the outlook for deposit growth and the mix of noninterest-bearing (NIB) versus interest-bearing deposits? A: CFO Michael Achary noted that the NIB deposit mix was diluted by the OFB acquisition and seasonal outflows in Q3. However, he expects a seasonal uptick in DDA deposits in the fourth quarter. CEO John Hairston added that they are focused on growing DDA through new treasury services hires and that deposit growth is expected to outpace loan growth in Q4, building liquidity for 2027. Q: Can you provide an update on credit quality, specifically the trends in criticized and nonaccrual loans? A: CFO Michael Achary reported that criticized commercial loans improved for the seventh consecutive quarter, decreasing by $7 million to $485 million. Nonaccrual loans saw a modest increase of $19 million to $133 million. Net charge-offs remained flat at 16 basis points, and the allowance for credit losses (ACL) coverage remains solid at 1.42%. The company continues to expect full-year net charge-offs in the 15-25 basis point range. Q: What is the bank's strategy regarding its energy loan portfolio? A: CEO John Hairston stated that the company has no appetite to grow its energy loan book, which is now well below 1% of total loans. He explained that after exiting reserve-based lending (RBL) and streaming services several years ago, the focus for loan growth is on other areas like commercial real estate, healthcare, and C&I. Q: How is the integration of One Florida Bank's treasury management platform progressing? A: CEO John Hairston noted that OFB had built a strong treasury function, particularly in homeowner association (HOA) banking. Hancock Whitney is adopting this specialty and plans to expand it to other markets in its footprint. He added that the core philosophies on treasury offerings are very similar, and the technical platform differences are not expected to be a meaningful issue. Q: What is the potential impact of recent industrial and data center investments in Mississippi and Louisiana on your business? A: CEO John Hairston described the investments as a "game changer" for the region, noting that organic growth rates in those states have ticked up. Currently, the impact is more on the depository side, as contractors are being paid upfront. However, he expects more borrowing opportunities as the projects mature. He also noted that the industrial contractors have negotiated good payment terms to avoid past issues seen in other sectors. Q: With the percentage of shared national credits (SNCs) now lower, could you increase this type of lending to facilitate more organic growth? A: CEO John Hairston confirmed that SNC outstandings are down to about 8.6% of loans, well below their 10% internal limit. He stated that this provides a "tailwind" and they could grow it, but they will not do so indiscriminately. The focus remains on selecting credits that match their yield expectations and credit risk appetite, while also enhancing fee income from their syndications desk. Q: What is the rationale behind the recent changes to your hedging strategy? A: CFO Michael Achary explained that the company uses cash flow and fair value hedges to manage its asset sensitivity and keep it within policy limits. The recent addition of a couple of hundred million in hedges was to "rightsize" the program to levels they view as appropriate for managing interest rate risk. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Performance was driven by strong organic loan production of 4% and deposit growth of 9% (excluding the One Florida Bank acquisition), primarily fueled by commercial real estate and equipment finance. - The acquisition of One Florida Bank (OFB) closed on August 1st, successfully adding 20 bankers and a mature homeowners association (HOA) banking facility to the portfolio. - Management attributes consistent growth to a 'One Bank' cultural concept that emphasizes collegial sales efforts across business lines and rigorous credit-aligned hiring practices. - Net interest margin (NIM) expanded by 5 basis points, with 4 basis points derived from purchase accounting accretion and the remainder from higher earning asset yields. - Asset quality remains stable with criticized loans improving for the seventh consecutive quarter, though non-accrual loans saw a modest increase of $19 million. - The company is shifting its focus toward adding treasury services and deposit-only gathering personnel to support liquidity needs as organic loan growth accelerates. - Management noted that recent regional industrial investments, including data centers and hyperscaler projects, are currently driving more depository benefits than borrowing needs. - Full-year 2026 guidance remains at low double-digit growth for both loans and deposits, supported by a robust hiring pipeline of approximately 50 net new bankers by year-end. - Net interest income (NII) guidance was revised to 9%-9.5% growth, assuming a single 25 basis point Fed rate hike in December with minimal immediate impact. - Management expects modest NIM expansion of 3 to 5 basis points in the fourth quarter, driven by the reinvestment of $300 million in bond principal cash flows at yields exceeding 5.5%. - The company will pause share repurchases in the fourth quarter to preserve Tangible Common Equity (TCE) above an 8% cultural threshold amid elevated 10-year Treasury rates. - Loan growth in the fourth quarter is expected to be led by commercial real estate, healthcare, and C&I, benefiting from a significant reduction in payoffs as interest rates rise. - Tangible Common Equity (TCE) ratio declined 173 basis points to 8.05%, primarily due to the cash acquisition of OFB, share buybacks, and AOCI impacts from rising rates. - The cost of deposits increased 12 basis points to 1.55% as the bank utilized promotional pricing on money market and CD products to build liquidity. - Management acknowledged the impact of a recent hurricane in the Florida Panhandle, though the focus remains on client support and community recovery efforts. - The bank maintains a self-imposed 10% limit on Shared National Credits (SNC), currently at 8.6%, providing a small window for opportunistic growth in syndicated lending. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management expects a similar 12 basis point increase in deposit costs in Q4 due to ongoing promotional rate programs designed to build 'sticky' liquidity. - NIM expansion will be supported by organic balance sheet growth and the repricing of bond portfolio cash flows from sub-4% to over 5.5%. - Higher rates are expected to cause a 'dramatic pullback' in loan payoffs, particularly in commercial real estate, which acts as a tailwind for net growth. - While new project appetite may ebb if rates rise significantly, management believes their asset sensitivity and new banker resources will outweigh these headwinds. - The bank is prioritizing the hiring of treasury services staff to mitigate the natural flow of non-interest-bearing deposits (DDA) into interest-bearing accounts. - Management plans to export One Florida Bank's successful HOA banking model across the broader Hancock Whitney footprint. - The decision to move to the 'sidelines' on buybacks is a cautious response to the 82 basis point increase in the 10-year Treasury during Q3. - The bank aims to keep TCE above 8.0% while expecting Common Equity Tier 1 to approach 12% by year-end.

Image source: The Motley Fool. Tuesday, Oct. 20, 2026 - Head of Investor Relations - Ashleigh Wilshire - President and CEO - John Hairston - CFO - Mike Achary - Chief Credit Officer - Chris Ziluca - Chief Operating Officer - Shane Loper Operator: I would now like to introduce your host for today's conference, Ashleigh Wilshire, Head of Investor Relations. You may begin. Ashleigh Wilshire: Thank you and good afternoon. During today's call, we may make forward-looking statements. We would like to remind everyone to carefully review the safe harbor language that was published with the earnings release and presentation and in the company's most recent 10-K and 10-Q, including the risks and uncertainties identified therein. You should keep in mind that any forward-looking statements made by Hancock Whitney speak only as of the date on which they were made. As everyone understands, the current economic environment is rapidly evolving and changing. Hancock Whitney's ability to accurately project results or predict the effects of future plans or strategies, or predict market or economic developments is inherently limited. We believe that the expectations reflected or implied by any forward-looking statements are based on reasonable assumptions, but are not guarantees of performance or results, and our actual results and performance could differ materially from those set forth in our forward-looking statements. Hancock Whitney undertakes no obligation to update or revise any forward-looking statements, and you are cautioned not to place undue reliance on such forward-looking statements. Some of the remarks contain non-GAAP financial measures. You can find reconciliations to the most comparable GAAP measures in our earnings release in the financial tables. The presentation slides included in our 8-K are also posted with the conference call webcast link on the investor relations website. We will reference some of these slides in today's call. Participating in today's call are John Hairston, President and CEO, Mike Achary, CFO, Chris Ziluca, Chief Credit Officer, and Shane Loper, Chief Operating Officer. I will now turn the call over to John Hairston. John Hairston: Thank you, Ashleigh, and thanks everyone for joining us today. The third quarter of 2026 was another solid quarter of profitability, efficiency, and balance sheet growth. Adjusting for expenses related to the acquisition, EPS improved 17% and PPNR grew 8%, both compared to same quarter previous year. We were also pleased to welcome new colleagues and clients through the transaction with One Florida Bank, which closed on August 1st. Excluding loans acquired from One Florida, loan growth met expectations at 4% annualized and continued to be funded by growth in core deposits. As shown on slide eight of our investor deck, loan production was strong and line utilization remained consistent with prior quarter. Growth was driven primarily by a lift in commercial real estate across multiple products and continued growth in equipment finance. Our guidance for the full year remains unchanged at low double-digit growth. Excluding deposits acquired from One Florida, deposit growth was strong at 9% annualized. This growth was led by an increase in interest bearing transactions resulting from attractive products, pricing, and strong clients. Our guidance for the full year remains unchanged at low double-digit growth for the year. Criticized loan levels improved for the seventh straight quarter, while non-accrual loans modestly increased, and our ACL coverage remains solid at 1.42%. We view overall asset quality as stable and continue to be well reserved. Profitability, efficiency, and returns continue to perform very well with an adjusted 1.41% ROA, efficiency ratio of 54.46%, and an ROTCE of 16.4%. Top-line revenue continued to cover significant offensive reinvestment and expenses continued to be well managed. Mike will add additional comments in his remarks, but I will note we have updated our guidance on page 19 to provide both fourth quarter and full year 2026 outlook. As shown on slide 18 of the investor deck, our capital ratios remain strong and reflect capital deployed for both inorganic and organic growth, return to shareholders, and the impact of the rising rate environment. We maintain confidence in our strategy to grow the balance sheet and enhance our operational efficiency, and we remain optimistic about closing out 2026 with continued growth and profitability. Lastly, before we continue the call, I want to take a moment to acknowledge the individuals, businesses, and communities across the Florida Panhandle who were impacted by the recent hurricane. Throughout the storm and afterward, our teams worked diligently to support our clients and ensure they had access to the services and resources they needed. We remain a dedicated partner as recovery efforts continue, backed by the commitment of our team and the resilience of the clients and communities we are very privileged to serve. With that, I'll invite Mike to make additional comments. Mike Achary: Thanks, John, and good afternoon, everyone. As John mentioned, the company's performance in the third quarter was strong. Our adjusted net income was $134 million or $1.66 per share, compared to net income of $127 million or $1.55 per share in the second quarter. Adjusted for expenses related to the OFB acquisition, PPNR for the company was up 6% from the prior quarter to $189 million. Expressed as a return on average assets, this continues to be a solid 2%. Net interest income increased 7% this quarter. Our fee income businesses continue to perform well, and expenses adjusted for cost associated with OFB were up but remain well controlled. The third quarter results reflect all expected one-time expenses related to the OFB acquisition. As expected, our net interest margin was up this quarter with a 5 basis point increase from 3.56% to 3.61%. Four basis points of the NIM increase resulted from the purchase accounting accretion related to the acquisition. The remaining increase was due to higher earning asset yields of 12 basis points overall. With the higher earning asset yield, we benefited from a higher yield on the bond portfolio and higher average earning asset levels, as well as higher loan yields. As expected, the yield on the bond portfolio was up 11 basis points to 3.46%, related to the reinvestment of principal cash flows during the quarter. Loan yields were up 11 basis points with a 10 basis point quarter-over-quarter increase in new loan rates and a healthy increase in average loans of $1.4 billion linked quarter or $299 million excluding OFB. The company's cost of deposits was up 12 basis points to 1.55% for the quarter, due mostly to increases in promotional rate pricing on our interest-bearing transaction deposits and certain CD maturity buckets, which drove an increase in our balances on those deposits. In turn, the cost of funds was up 8 basis points with lower average other borrowings driving the difference to the cost of deposits. Switching to asset quality, our criticized commercial loans improved for the seventh consecutive quarter, decreasing $7 million to $485 million. Non-accrual loans did increase $19 million to $133 million. Net charge-offs came in at 16 basis points, so flat from the prior quarter. Our loan loss reserves remain solid at 1.42% of loans. We continue to expect net charge-offs to average loans will come in at between 15 and 25 basis points for the full year 2026. Finally, on slide 19 of the earnings deck, you'll see our forward guidance for both fourth quarter and full year 2026. We have included one rate hike of 25 basis points in December, but with minimum impact on our expectations. For the full year, we continue to expect loan and deposits to be up low double digits. We revised our guidance on net interest income to be up between 9% and 9.5%, fee income up between 5.5% and 6%, and both operating expenses and PPNR up between 8% and 8.5%. Lastly, a comment on capital. TCE was 8.05%, down 173 basis points from the prior quarter. The largest drivers of that decrease resulted from the cash acquisition of OFB, third quarter share repurchases, and a decrease in OCI. We did repurchase 1 million shares in the third quarter and have another 1 million shares remaining in this year's authority. Coming into the quarter, the intention was to exhaust that authority during the fourth quarter. However, with the 10-year Treasury at elevated levels and with an unprecedented 82 basis point increase over the course of the third quarter, and with our TCE coming out of the quarter at 8.05%, we will likely be on the sidelines with additional repurchases until there is a little bit more clarity about where rates go from here. As far as 2027 is concerned, we will address that with our board in December, but I would say it is very likely that we will have some authority in place for next year. I will now turn the call back to John. John Hairston: Thank you, Mike. Let us open the call for questions. Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality, and if you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Michael Rose from Raymond James. Please go ahead. Michael Rose: For taking my questions. Mike, maybe we can start with the margin. I think you expect some modest improvement in the fourth quarter on a core basis, ex OFB. But I did note obviously, or you guys noted that deposit costs were up. Just trying to get a better understanding of the puts and takes here and what the potential could be if we do get a rate hike beyond the 25 basis points that you have modeled in. Beta assumptions, all the above. Thanks. Mike Achary: Sure thing, Mike. We'll be glad to. First off, as far as any rate hikes in the fourth quarter, what we're assuming at this point is the Fed increases 25 basis points in December. Any impact or any increase that late in the quarter really will have a minimum impact, I think, on our numbers for the fourth quarter. Having said that, you guys know that we're modestly asset sensitive and certainly would benefit or will benefit from any increase in rates going forward. Having said that, I think the big drivers as we come out of the third quarter into the fourth quarter is first and foremost our continued ability to organically grow our balance sheet. Certainly, the third quarter results were a little noisy, inclusive of OFB. But aside from that, we were able to continue to organically grow the balance sheet. Loans grew 4% linked quarter annualized deposits, the better part of 9% linked quarter annualized, both of those numbers excluding the impact of OFB. We would expect that kind of organic balance sheet growth at least to continue into the fourth quarter. We're having really good success in growing, especially our deposit base. Certainly bringing in new customers and have kind of a nice roster of promotional rates out there that I think have been well-received by folks. We have promotional rates both with CDs as well as money market accounts. Again, as I mentioned, those have been pretty successful and I think have driven the growth that we were able to show in the third quarter and what we're expecting in the fourth quarter. So that's first and foremost. We'll continue to reinvest cash flow coming out of the bond portfolio. At these levels, we were able to reprice at a pretty nice margin. For example, in the third quarter, we're looking at least $300 million of principal cash flow coming off at well below 4%, and the assumption is that we'll be able to reinvest that north of 5.5%. That certainly that's a big driver. We certainly do have higher deposit costs. We were up in the third quarter compared to the second quarter, and for the fourth quarter, we're assuming probably a similar increase, all things equal. Again, a lot of that is pointed at the promotional rates that I just mentioned. All those factors combined put us in a position, again, we're able to grow our average earning assets and produce the levels of NIM expansion and NII that we're looking at for the fourth quarter. For us, a modest NIM expansion is probably somewhere between 3, 4, 5 basis points, and then NII growing accordingly. Hopefully that was helpful. Michael Rose: Yeah. Lots to unpack there, so I appreciate all the Mike Achary: Yeah Michael Rose: the puts and takes there. Maybe just Mike Achary: Sure Michael Rose: as one follow-up, how should we think about kind of underlying loan demand and production if we were to get more than another rate hike or two? Is there certain categories? I assume things like construction, maybe commercial real estate, you might see a little slowdown, but then you've also added One Florida, which I think has pretty decent pipelines. Just talk to us about kind of ongoing levels of production and what that could mean in the context of potentially higher rates than what you've modeled. Thanks. John Hairston: Yeah. Thanks, Michael. This is John. I'll take a swing at that one. First, there are puts and takes even from rate increases, and as the tenor moves up on the good front, it does mean we see less payoffs, particularly in commercial real estate. While there is certainly a downside, that appetite for new projects could ebb if rates go up. Let's just say something more significant like 50 to 100 basis points over the next couple of quarters, we'll see a dramatic pullback in payoffs. The net benefit from being asset sensitive should overcome what could be a little lesser production. As you did mention, we do have the additional resource coming from a pretty goodly number of net new bankers and also the resources that came with a very fine organization, Orlando. I think our tailwinds outweigh the headwinds just a bit. But since you mentioned sentiment and just kind of how clients feel, I think we've covered before, Shane's mentioned it a couple of times on this call, but we do survey our clients' sentiment, particularly on the business side, pretty frequently. Particularly when the macro seems to have headlines that are changing every week or so. Right now, the sentiment suggests both resilience and a tone of cautious optimism simply because the economy is still going quite well. Over the last few weeks, you could see even though sentiment is cautiously optimistic toward growth, those clients are focusing a little more on the cost of energy, its impact on overall inflation, and the Fed's response to that. I think it'd be fair to characterize our book as still being cautiously optimistic, but a growing focus on those factors. So if a quarter every couple, three months is probably not going to be that big a deal, in fact, may be a little helpful to the bottom line. But obviously, there's always some point where you kind of reach the proverbial squeal point where people begin to pull in their horns, and I think we're a little ways away from that and don't see that happening in Q4. Was that what you needed, or do you need to redirect one more time? Michael Rose: Yep. No, that's perfect. Thanks for all the color. I'll step back, guys. Thank you. John Hairston: You bet. Thanks, Michael, for the question. Operator: Your next question comes from the line of Ben Gerlinger from Citi. Please go ahead. Ben Gerlinger: Hi. Good afternoon. John Hairston: Hey, Ben. Ben Gerlinger: Just wanted to kind of follow up on the funding. I guess the repricing aspect. You guys included the table for OFB. It is on page 10, where balances from beginning of August to the end of September, they grew almost 6% over that 60-day window. If you look at kind of relative mix of deposits, you guys have drifted a little lower from OFB on their DDA. So instead of like the mid 35%, 36%, 37%, you are now at 33% on DDA. I was just kind of curious how you guys think about DDA relative to the mix going forward and kind of juxtapose that against the growth opportunities in the North Florida area. Mike Achary: Yeah, great question, Ben, and I will start, and John can certainly add some color. But obviously, we are very proud and think it is a huge benefit to our balance sheet to have the generous mix of non-interest-bearing deposits that we have. It has fallen off a little bit in the last quarter or so we are at the range that you cited. Certainly, some of that is related to OFB coming on. I think their deposit mix was around 22% or so. Their concentration of NIBs was around 22% or so. So that will bring us down a little bit. But we do have certain seasonality impacts that impact that part of our deposit portfolio, and especially during the third quarter. So we were down about $200 million end of period in DDA deposits. About a third of that was, I think, related to OFB in terms of their money kind of being redirected elsewhere on the balance sheet, namely into money market accounts. Probably taking advantage of the rates that we had there on a promotional basis. The rest of the decline really was seasonal. Another third really related to our commercial and consumer customers, and we normally do see a seasonal impact in the third quarter. Then certainly public funds, our public fund deposit book around $3 billion. Mostly interest-bearing transactions, but a healthy amount of NIBs. Again, I think you do see kind of those seasonal impacts in the third quarter. So we would expect a fair amount of the DDAs that we lost in the third quarter to come back to us in the fourth quarter. In the fourth quarter we typically have a seasonal uptick, both on the public fund side and the non-public fund side. So John, you may want to chat a little bit about our efforts to grow DDA though overall. John Hairston: Sure. I will be glad to, Ben, and if we do not cover any of the detail you are looking for, feel free to ask again. Generally speaking, we have been very proud of the componentry of the DDA book. We recognize that as we grow loans at a faster organic pace than we have the last several years, our desire to have more funding puts a little pressure on the mix simply because in these times our clients are more focused on rate because it is available to them. So there has been a natural bit of flow out of DDAs into IBTs on our book. It is not a loss of deposits. It is really, as Mike called it, a redirect to IBTs. That said, among the cadre of offensive players we are adding, there is a pretty keen focus on adding treasury services folks. We are also in the hunt to create positions that are specifically focused on deposit-only gathering to offer white glove treatment and onboarding operating accounts from small and medium-sized businesses. So a little early to tell how successful that is going to be, but while we are adding folks, it is a good time, I think, to add those people that are focused more on deposits. Having said that, when you look at Q3 with a 4% loan growth rate, 9% was more than we needed, and we are always glad to have it. Q4 is likely to outpace in deposit growth versus loans again. So we will enter the year 2027 with a very healthy amount of liquidity to loan. So I would anticipate we will keep the foot on the gas with DDA growth and then press a little harder growing loans as we enter into Q1 2027. Was that what you needed or would you like some more detail? Ben Gerlinger: No, that was really helpful. You did bring up the people you have hired, and I know you brought up a lot of bankers over the last, call it 12-18 months. Is the next focus only deposit-focused, or are these the original people also deposit and you are just also adding kind of the treasury management, kind of the bells and whistles associated with fees or lower yielding deposits? John Hairston: It's an addition to, and I know this is maybe too much shop talk, but when we add bankers, those bankers are typically our best reference to the folks who really get it done on the treasury side. After a year and a half of pretty acute focus in adding bankers, I think we have a little bit better potential to add treasury folks that know those folks and know the ones that work well with them. We're in the business of identifying those folks and hopefully getting them to join the team as we move into next year. We've added a few, but not as many as we'd like to, that'll be part of the effort. When we get into bankers, the contribution from the hiring plan so far has been pretty strong. We talk on the call about net new bankers, but obviously there's also a fair amount of trading bankers going on. When we look at the overall contribution of the new bankers we've added since the beginning of last year, their contribution is a whopping 55% of year-to-date loan growth in 2026 and 77% of Q3. With a very efficient portfolio in terms of average carry for each of our bankers, adding those new folks that have some capacity is very meaningful. On the deposit front, that's 19% year to date and 15% for Q3. The mix of recipe that creates really good profitability and a great balance sheet over the next couple of years, inclusive of DDAs, lies squarely in the quality of the people that we're adding, both on a net basis and where we're simply making trades. Ben Gerlinger: That's helpful. Thank you, guys. John Hairston: Yeah. Thank you, Ben, for the question. Operator: Your next question comes from the line of Will Jones from KBW. Please go ahead. Will Jones: Yeah. Hey, great. Thanks, guys. Good afternoon. John Hairston: Hey, Will. Will Jones: I wanted to ask just on growth. When you guys kind of think about the tenets of your growth going forward, it's felt like consistency, producing consistency is a very big focus for you guys. We kind of saw that again, if you strip out OFB in that mid-single digit range this quarter, you were able to do that in the second and first quarter. A lot of that is some of this new hiring we were talking about, net new revenue producers. But aside from just those new producers, how are you guys creating this culture of consistency within more of the legacy Hancock banker set? John Hairston: I will start, and Mike and Chris may want to jump in there too. But the notion of consistency, or said a different way, the lack of volatility, really extended to everything. We wanted to reduce volatility in earnings, volatility in provision, volatility in growth, and get to a pretty steady upward momentum, both on both sides of the balance sheet, in NII and fee income, and in overall credit. That was a lot of years of doing a bit of de-risking in the loan portfolio, of adding concentration in markets that were more dependable for organic growth, and making sure that we added players to our team that fit our culture. The reason our credit folks are involved in the hiring process is to ensure that we have as good a percentage of folks that join the company that match up with our credit risk appetite and with our target operating models for portfolio, so that we do not both end up disappointed, us and the prospective associates. A lot of discipline around hiring. I think the second big part that was helpful there is treating a recruiting of our sales force just like recruiting a client. There is a pipeline for new associates. There are biweekly calls over who is the best talent we are running to in the markets that we are competing in. The best people we know to know who our best bankers are across the proverbial street are our bankers that are doing battle in hand-to-hand combat every week in, week out. I think identifying those was actually very careful. Around the bank, there is a coined phrase called the One Bank Concept. That One Bank Concept is the collegial operating agreements and then the practice of having that collegial operating style across all of our lines of business and credit. Whether a person is focused on wealth, on credit, on commercial, on retail, any of those different sectors, while we do follow a line of business architecture, those folks all understand they are on one team. They do a lot of calling efforts together. They prospect together. They review client opportunities together. As a result, our competition focus is really more externally pointed, not internally focused when it comes for competition for revenue and for clients. That concept has worked very well so far. We see that growing and getting more effective and efficient over time. As we add team members to the bank, the word we hear from them is typically refreshing. When they join the company, they feel as if no matter what area they come into, they are welcome to a very broad team that is bigger than just their one area of focus in that particular line of business. Will Jones: Yeah. That's great, John. Thanks for that thoughtful response. Mike, maybe a question for you on deposits. You talked about some of the success you had with some of the promotional offerings. Could you talk to us just about how much you were able to raise through these campaigns? Whether you anticipate extending these out over the balance of the year, and maybe just general expectations for how that could play into deposit costs over the coming months. Mike Achary: Sure, I'd be glad to. The promotional rate programs, especially on the money market side, were really put into place toward the end of the second quarter. If you go back and look at the cadence of growth of the second quarter, you'll note that we really had pretty significant end-of-period growth. And that was because, again, those campaigns were put in place later in the quarter. So the growth over the third quarter has been a little bit more consistent because we've had those programs in place really from the get-go of the quarter. And certainly when you look at our deposit costs and the kind of the expected betas we have in the materials on slide 15, you can see probably a little bit more of an increase in deposit costs than maybe people are used to seeing from us in an uprate cycle. And I think that's completely pointed at the commentary that John shared earlier around building liquidity to support loan growth, not just for the quarter that we're in, but for two, three quarters down the road. And building that customer loyalty and that stickiness of deposits. So it is a little bit of a shift, I think, in our philosophy around how we look at deposit costs, and I think it's been pretty successful so far. Will Jones: Yeah. Okay. That's great color. And last for me, maybe one housekeeping. The decline in tangible book value is maybe a little more significant than we were anticipating. Was there anything unique with OFB marks that happened? Or was that really all just kind of AOCI driven? Mike Achary: No. During the quarter, if you look at TCE and certainly that plays down to tangible book share, the bigger inputs really was the cash price tag for OFB, the buybacks that we did during the quarter, and then the OCI impact. That was 59 basis points on TCE, 111 for OFB, and about 22 in terms of the buyback. I think it was just one of those quarters where a lot of those things just kind of aggregated up together and drove our TCE down to the 8.05, and then had the same impact on tangible book value per share. Will Jones: Yeah. Okay. That's fair enough. Just wanted to cross-check that there. Thanks for the questions, guys. John Hairston: Thanks, Will. Operator: Your next question comes from the line of Brett Rabatin from StoneX Group. Please go ahead. Brett Rabatin: Hey, good afternoon. John Hairston: Good afternoon. Brett Rabatin: Thanks for the question. Wanted to ask on the hires. I noticed that the number, I think year to date through 3Q on slide 17 shows 38 net new bankers hired as opposed to 42 last quarter. I guess I'm just curious if you guys have fine-tuned some of maybe the legacy lenders/producers or any thoughts on the linked quarter change there to the downside. John Hairston: Yeah. This is John. I will answer it. It is a consistent push for talent, and right now, I think as of today, pending anything that happened today, we are at 42 right now. Any given couple week span, it may go up or down a few folks as we just go through the normal churn, but that number is 42 right now. I think on the last day of the quarter it was 38. That is what is in the materials. But our expectation is that we still wrap the year at around 50. Just as a reminder, that excludes the 20 bankers that were added as part of the One Florida gig on August 1st. So if we can finish the year at or right there around 70, inclusive of One Florida, I think we will be pleased with the net growth for the year, particularly given the contribution those folks are making. Brett Rabatin: Okay. That is helpful. Then just, I want to make sure I understood the kind of the narrative on the margin going forward versus the increase in cost of funds from here. If I heard correctly, Mike, it sounded like you are expecting the cost of funds to have a similar trend upward in 4Q than 3Q. Is that a fair assessment? Then just kind of wondering, your cost of funds is pretty low relative to what market rates are. So was just curious if there was any thoughts on, hey, maybe the beta might pick up at some point in 2027 on the deposit side. Mike Achary: Sure. So yeah, you are absolutely reading that correctly. So our cost of deposits, I will focus on that, was up 12 basis points quarter-over-quarter. For the fourth quarter, we are expecting something in that neighborhood, maybe a basis point or two more. Again, that is really a carry-forward of the promotional rate programs that I mentioned earlier. As far as our betas are concerned, again, we have that information in the deck, and those are expectations and approximate ranges. But we would expect to hit those or come pretty close, given kind of our normal rate increase cycle. Right now, again, we have got the one 25 basis point bump in December, and at this point, who knows for next year in terms of 2027 is concerned. But overall, we will benefit from rate increases. We will see our NIM and NII levels continue to modestly increase based on that component as well as our ability to consistently grow the balance sheet organically as we kind of mentioned earlier. Brett Rabatin: Okay. That's really helpful. Thanks, Mike. Thanks for the color. Mike Achary: You bet. Bye. Operator: Your next question comes from the line of Jared Shaw from Barclays. Please go ahead. Jon Rau: Hi, this is Jon Rau. I'm for Jared. Good afternoon. John Hairston: Good afternoon. Jon Rau: Looking at the sources of loan growth, it looks like energy loans were still down. I know that was an area that's been de-emphasized, but just given the backdrop, I'm wondering if either your stance around that segment or customer demand in that segment has changed. John Hairston: Yeah. Is the question about what our posture is on energy growth? Did I hear you right? Jon Rau: Yeah. John Hairston: Look, it's a great business to be in. After we exited RBL and midstream services principally several years ago, we really haven't had an appetite to get back in. Never say never, but at this point in time, that total concentration is well below 1%, and it'll stay below 1%. So in terms of actually growing the loan book, what we anticipate the bigger contributors for fourth quarter to be would be commercial real estate. A pretty good bounce back in C&D, given a diminution in payoffs and a lot of new projects coming on. Healthcare, and I think we're likely to see a pretty good chunk of C&I come in. A little too early to tell, but October's starting off as expected, but I think we'll finish at the same level for the fourth quarter. Jon Rau: Okay, great. That's helpful. John Hairston: Okay. Jon Rau: Thinking about the treasury management business, it sounds like that's becoming even more of a focus. I know that part of what attracted you to the One Florida Bank is their treasury management platform was pretty advanced, I guess, relative to the size. I guess just how integrating their platform and strategy into the overall Hancock platform has progressed since the deal closed? John Hairston: Sure. This is John. One Florida, it's a good observation. As a relatively new bank, they had done a really terrific job building out a treasury function, primarily because they had to. They're in a hot market. Organic loan growth is terrific. At the compounded annual growth rate they had, getting a 22% free money component in their deposit book with a bank that young was actually quite impressive. When we look at sort of the core philosophy they have on the treasury offerings, very similar to ours, so there really weren't a lot of differences. Their technical platform's a little different just given the vendor they chose, but we don't really anticipate any meaningful difference. Finally, the only thing that was really a principal difference is they have, given where they operate, had a pretty mature homeowners association banking facility that we have adopted and will expand to those markets across our footprint that have some heavy HOA depositories and in some cases, HOA borrowing needs. So, we are adopting that and incorporating that across our company. Jon Rau: Okay, great. Thanks for the call. John Hairston: You bet. Thank you. Operator: Your next question comes from the line of Feddie Strickland from Hovde Group. Please go ahead. Feddie Strickland: Hey, good afternoon, gentlemen. John Hairston: Hey. Feddie Strickland: Just wanted to ask from kind of a 50,000 foot view of the footprint. There's been a lot of headlines about manufacturing and data center, other investments kind of in the center of the legacy footprint in Mississippi and Louisiana. Do you feel like you have to change the game for growth in some of those areas, or does that seem like it's more incremental at this point? John Hairston: This is John. Thanks for the regional observation. That's a good free commercial for the call. It is a game changer. I think we're seeing organic growth rates in Mississippi and Louisiana that clearly have ticked upward a good bit. A lot of that work, which is industrial contracting and subcontracting related, has been awarded to local and local-ish players. It's been very beneficial. I'd certainly hoped that we saw a lot more line of credit related business out of that. The hyperscalers are very friendly in terms of terms for payment. They typically prepay a pretty good chunk upfront on what's expected, and so that's being passed all the way down from the industrial master providers to the subcontractors. As a result, everybody's getting paid pretty timely. We're seeing more of an impact on the depository basis than we are the loan basis right now. As those projects begin to come into fruition and go into just care and feeding, that'll probably reverse itself and we see more borrowing opportunities. But the infrastructure adds that are coming along with those projects are clearly a plus-up. The tax revenue to the educational system and quality of life provision for the parishes and counties that those data centers are near or in is a windfall for those market areas. As a result, we couldn't be happier to see that type of development within our footprint and hope to take more advantage of it in the future. Feddie Strickland: Got it. Yeah. Maybe the hyperscalers can get the AI to figure out Southern accents a little better for. John Hairston: Yeah. Feddie Strickland: giving my name to the AI agent on the call. John Hairston: Yeah. I think the cautionary part is really just how many of these hyperscalers actually win the race. We pay close attention to that. I think that's the reason the industrial folks have negotiated good payment terms, is to ensure that we don't see the types of issues that happen when battery plants were running wide open and then suddenly there was a political change, and that stopped quickly. Some of those folks got hung out with problems, and that lesson got learned on the data center construction. I think they're approaching that much more conservatively and appropriately. I think the downside looks pretty low. You didn't mention SpaceX, but obviously in Louisiana, that's a big project in an area that has not received a whole lot of good tax revenue news. That'll be very impactful to that part of Louisiana. We welcome that project as well. Feddie Strickland: I appreciate the color on that. Just one more from me. Just wanted to ask about M&A appetite here with the deal closed. Is that something that you're looking at doing, or do you feel like you have enough organic growth opportunity at this point that M&A is not really necessary? Mike Achary: Well, certainly this is Mike. Certainly, the focus continues to be organic balance sheet growth. Again, we're thrilled with the success that we've been able to enjoy thus far, and certainly the effort and the intensity will continue along that front. As far as M&A is concerned, we just closed OFB, and we have the conversion coming up soon. So those are the things we're focused on M&A-wise right now. Aside from that, it's something that we'll continue to look at really through more of an opportunistic lens, I think, more than anything else. Feddie Strickland: All right. Thank you both. Appreciate the call. I'll step back. Mike Achary: Okay. Operator: Your next question comes from the line of Gary Tenner from D.A. Davidson. Please go ahead. Gary Tenner: Thanks. Good afternoon. John Hairston: Hey there. Gary Tenner: I had just a follow-up as relates to the AOCI impact and the buyback. When you announced the One Florida deal, as I recall, it was somewhere around an eight-quarter window to kind of return TCE ratios back to where they were, and that was assuming that you utilized the full buyback. Obviously, the AOCI impact changes that for the fourth quarter. But could you kind of talk about the timeline, in terms of have there been any changes excluding AOCI in terms of growing tangible common equity over the next, call it, six or eight quarters? Is a 9% TCE kind of the assumption we should be thinking about for when you'd be ready or willing to re-engage with the buyback? Mike Achary: Yeah, great question, Gary. Short answer is no, nothing's changed. Coming out of OFB, the intent was, as I mentioned in the prepared comments, was to exhaust the authority over the second half of the year. We bought back the 1 million shares in the third quarter, and the intent coming into the fourth quarter was to do that once again. The step-back is really just related to where longer-term rates have gone and certainly cognizant of where our TCE is at 8.05. All things equal, the preference would be not to let that go below 8%. That's kind of our cultural threshold, if you will. But certainly when we look at Common Equity Tier 1, where the OCI is not impactful, we're strong at 11.53. Our comfort zone there is probably closer to 12%, maybe 12.5%, and we should be pretty much knocking on the door of a 12% Common Equity Tier 1 by the end of the year. As far as TCE is concerned, we think we'll be able to grow that 25, 30 basis points across the third quarter, excluding any buybacks. But again, we're going to be very cognizant and very vigilant in terms of rates, and we'll also be opportunistic. So certainly, that's something we'll pay very close attention to. Gary Tenner: Got it. Thank you. Mike Achary: Okay. Operator: Your next question comes from the line of Stephen Scouten from Piper Sandler. Please go ahead. Stephen Scouten: Yeah. Hi. I'm curious with the percentage of SNC loans where it is now with the inclusion of OFB, if that's something that could be back on the table to help facilitate additional organic growth at this point. John Hairston: Yeah. Thanks for the question. This is John. A great observation. It is down to about 8.6%, I think, for the end of the quarter. It is about $100 million in outstandings lighter than the prior quarter. The big driver in the percentage step-down was really just the addition of the denominator coming from One Florida's August 1st close. I think it is fair to characterize that as a little bit of a tailwind, and that we could grow it inside our self-imposed 10% line of demarcation. That being said, we are not going to run out and try to do a few hundred million dollars just because we can. I think right now we are selecting the credits that we feel like match up our yield expectations and our credit risk appetite. I think it is more a matter of we would not curtail the syndications business because of the threshold, because we are so far from it. But at the same time, it is not going to change our credit risk appetite in terms of the premium desires to grow relationship business. But with a pretty strong syndications desk set up, we would not mind enhancing our fee intake from handling some of those over the next several quarters. Yeah, it is a little bit more of a tailwind. But I would not look for a wholesale change in our posture. Stephen Scouten: Understood. That is helpful. Mike, could you speak to any changes and thoughts around the hedging strategy? I noticed there were some more cash flow hedges put on. Was that maybe just opportunistic given the cost of downside protection? Just curious on what the ideology is there and how that might impact with rate hikes and the like. Mike Achary: Yeah. So excellent question. So we use our cash flow hedges along with the fair value hedges to kind of control and mitigate some of our asset sensitivity and try not to let that get too outsized. Stephen Scouten: Sure. Mike Achary: Our policies call for certain levels of hedges, and I think what you saw this quarter in terms of us adding a couple hundred million, just kind of right-sizing that to levels that we view to be appropriate for what we are trying to accomplish with the policy and program. Stephen Scouten: Okay. Great. Thanks for the time. Congrats on a great quarter. Mike Achary: Thank you much. Operator: At this time, there are no further questions. I would like to turn the call back to John Hairston for closing remarks. John Hairston: Thank you, Jay, for moderating the call. Thanks everyone for attending on a busy release day. We look forward to seeing you on the road the next several weeks. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Hancock Whitney, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hancock Whitney wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Hancock Whitney (HWC) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

GULFPORT, Miss., October 20, 2026--(BUSINESS WIRE)--Hancock Whitney Corporation (Nasdaq: HWC) ("Hancock Whitney") today announced its financial results for the third quarter of 2026. Net income for the third quarter of 2026 totaled $110.1 million, or $1.36 per diluted common share (EPS), compared to $127.0 million, or $1.55 per diluted common share, in the second quarter of 2026. On August 1, 2026, Hancock Whitney closed the acquisition of OFB Bancshares, Inc., the parent company of One Florida Bank ("OFB"). Third quarter 2026 results include a pretax charge of $30.4 million, or $0.30 per share, of supplemental disclosure items related to the acquisition of OFB. Excluding the impact of these supplemental disclosure items, EPS would be $1.66, up $0.11 linked-quarter. There were no supplemental disclosure items in the second quarter of 2026. The company reported net income for the third quarter of 2025 of $127.5 million, or $1.49 per diluted common share. There were no supplemental disclosure items in the third quarter of 2025. Third Quarter 2026 Highlights - Net income totaled $110.1 million, or $1.36 per diluted common share, compared to $127.0 million, or $1.55 per diluted common share in the second quarter of 2026; adjusted net income totaled $134.1 million, or $1.66 per diluted share - Adjusted pre-provision net revenue (PPNR) totaled $189.3 million, up $11.2 million, or 6% from the prior quarter - Loans increased $2.0 billion - Deposits increased $2.5 billion - Criticized commercial loans decreased and nonaccrual loans increased compared to the second quarter of 2026 - ACL coverage remained at 1.42%, unchanged from the prior quarter - NIM of 3.61%, up 5 bp from the prior quarter - CET1 ratio estimated at 11.53%, compared to 13.19% in the prior quarter; TCE ratio of 8.05% compared to 9.78% in the prior quarter - Efficiency ratio of 54.46%, down 85 bps linked-quarter, compared to 55.31% in the prior quarter "We are pleased to share another quarter of solid results for the third quarter of 2026," said John M. Hairston, President & CEO. "Profitability remains strong with adjusted EPS of $1.66, up 7% from prior quarter, adjusted ROA of 1.41%, and an improved efficiency ratio of 54.46%. We delivered strong loan and deposit growth, while NIM expanded 5 basis points to 3.61%. Our criticized loan levels decreased during the quarter and our ACL remains robust at 1.42%. On August 1, we were pleased to welcome new colleagues and clients through the acquisition of One Florida Bank. As 2026 draws to a close, we remain committed to executing on our organic growth plan and maintaining operational efficiency and a strong capital position." Loans Total loans were $26.5 billion at September 30, 2026, up $2.0 billion, or 8%, from June 30, 2026. Loan growth included $1.7 billion in loans acquired from OFB, as well as a legacy and post-acquisition increase in commercial real estate across multiple products and continued growth in equipment finance. Average loans totaled $25.8 billion for the third quarter of 2026, up $1.4 billion, or 6%, linked-quarter. Deposits Total deposits at September 30, 2026 were $32.2 billion, up $2.5 billion, or 9%, from June 30, 2026. Deposit growth included $1.9 billion in deposits acquired from OFB, as well as legacy and post-acquisition activity including an increase in interest-bearing transactions and savings deposits, offset by decreases in noninterest-bearing deposits, retail time deposits and interest-bearing public fund deposits. Noninterest-bearing deposits totaled $10.6 billion at September 30, 2026, up $217.9 million, or 2%, from June 30, 2026, and comprised 33% of total period-end deposits. This increase included $418.7 million of noninterest-bearing deposits acquired from OFB. Interest-bearing transaction and savings deposits totaled $15.5 billion at the end of the third quarter of 2026, up $2.5 billion, or 19%, linked-quarter, including $1.2 billion acquired from OFB, and legacy and post-acquisition increases due to competitive products and pricing. Interest-bearing public fund deposits totaled $2.6 billion at September 30, 2026, down $309.0 million, or 11%, linked-quarter, including $15.5 million acquired from OFB, and decreases due largely to seasonal outflows from our legacy public funds. Compared to June 30, 2026, retail time deposits of $3.6 billion were up $174.2 million, or 5%, including $203.0 million acquired from OFB, partially offset by a net reduction driven by maturities and repricing during the third quarter of 2026. Average deposits for the third quarter of 2026 were $30.9 billion, up $2.1 billion, or 7%, linked-quarter. Asset Quality The total allowance for credit losses (ACL) was $375.8 million at September 30, 2026, up $27.8 million, or 8% from June 30, 2026. The increase in the ACL includes $21.9 million recorded through purchase accounting for OFB acquired loans. During the third quarter of 2026, the company recorded a provision for credit losses of $16.1 million, which includes a $1.0 million supplemental disclosure item for unfunded commitments acquired from OFB, compared to $13.8 million in the second quarter of 2026. There were no supplemental disclosure items in the second quarter of 2026. There were $10.2 million of net charge-offs in the third quarter of 2026, or 0.16% of average total loans on an annualized basis, compared to net charge-offs of $9.4 million, or 0.16% of average total loans in the second quarter of 2026. The ratio of ACL to period-end loans was 1.42% at both September 30, 2026 and June 30, 2026. Criticized commercial loans totaled $485.3 million, or 2.29% of total commercial loans, at September 30, 2026, down $6.7 million from $492.0 million, or 2.55% of total commercial loans, at June 30, 2026. Nonaccrual loans totaled $133.3 million, or 0.50% of total loans, at September 30, 2026, compared to $113.7 million, or 0.46% of total loans, at June 30, 2026. ORE and foreclosed assets were $10.9 million at September 30, 2026, down $2.0 million, or 15%, from $12.9 million at June 30, 2026. Net Interest Income and Net Interest Margin (NIM) (TE) Net interest income (TE) for the third quarter of 2026 was $314.9 million, an increase of $19.7 million, or 7%, from the second quarter of 2026. The net interest margin (NIM) (TE) was 3.61% in the third quarter of 2026, up 5 bps linked-quarter, driven by the impact from purchase accounting accretion related to OFB (+4 bps), favorable level of other borrowings (+1 bps), and change in earning asset yield and mix (+8 bps) offset by higher cost of deposits (-8 bps). Average earning assets were $34.8 billion for the third quarter of 2026, up $1.6 billion, or 5%, from the second quarter of 2026. Noninterest Income Noninterest income totaled $107.0 million for the third quarter of 2026, down $1.4 million from the second quarter of 2026. The third quarter of 2026 included $0.6 million of post-acquisition noninterest income from OFB. Service charges on deposit accounts totaled $27.1 million for the third quarter of 2026, up $1.2 million, or 5%, including $0.2 million post-acquisition activity from OFB. Bank card and ATM fees were down $0.2 million, or 1%, from the second quarter of 2026, partially offset by $0.1 million post-acquisition activity from OFB. Investment and annuity income and insurance fees were down $0.8 million, or 5%, linked-quarter. Trust fees were down $1.1 million, or 4%, linked-quarter due partially to seasonality. Fees from secondary mortgage operations totaled $2.9 million for the third quarter of 2026, down $1.2 million, or 30%, linked-quarter, due to the current rate environment. Other noninterest income was $15.2 million in the third quarter of 2026, up $0.7 million, or 5%, from the second quarter of 2026. The increase in other noninterest income was primarily due to $0.3 million post-acquisition activity from OFB, higher SBIC income, syndications fees, and FHLB stock income, partially offset by lower derivative and BOLI income. Noninterest Expense & Taxes Noninterest expense totaled $262.0 million for the third quarter of 2026, up $36.6 million, or 16% linked-quarter. The third quarter of 2026 included $5.8 million of post-acquisition noninterest expense from OFB and $29.4 million of supplemental disclosure items related to the acquisition of OFB. There were no supplemental disclosure items in the second quarter of 2026. Personnel expense totaled $144.8 million in the third quarter of 2026, up $14.6 million, or 11%, linked-quarter. This increase included $8.3 million of supplemental disclosure items related to the acquisition of OFB and $3.6 million of post-acquisition expense from OFB. The remaining increase in personnel expense was primarily related to the impact of new hires associated with our organic growth plan. Net occupancy and equipment expense totaled $20.1 million in the third quarter of 2026, up $1.8 million, or 10%, from the second quarter of 2026. The increase included $0.1 million of supplemental disclosure items related to the acquisition of OFB and $0.4 million of post-acquisition expense from OFB. Amortization of intangibles totaled $2.9 million for the third quarter of 2026, up $0.7 million, or 30%, linked-quarter, including $1.2 million of post-acquisition expense from OFB. Net expense on ORE and other foreclosed assets totaled $0.6 million in the third quarter of 2026, compared to $0.2 million in the second quarter of 2026. Other expenses totaled $93.7 million in the third quarter of 2026, up $19.2 million, or 26%, linked-quarter. This increase included $21.0 million of supplemental disclosure items related to the acquisition of OFB and $0.6 million of post-acquisition expense from OFB. The effective income tax rate for the third quarter of 2026 was 22.5%, compared to 21.7% in the second quarter of 2026. Capital Common stockholders' equity at September 30, 2026 totaled $4.2 billion, down $209.8 million, or 5%, from June 30, 2026. The tangible common equity (TCE) ratio was 8.05%, down 173 bps linked-quarter. The company's CET1 ratio is estimated to be 11.53% at September 30, 2026, down 166 bps linked-quarter. During the third quarter of 2026, the company repurchased one million shares of its common stock at an average price of $77.91 per share. These stock repurchases were pursuant to the company's share buyback program (which authorizes the repurchase of up to 5%, or approximately 4.1 million shares, of the company's outstanding common stock), which expires on December 31, 2026. Since the share buyback program's inception, the company has repurchased 3,112,966 shares of its common stock under this share buyback program. Conference Call and Slide Presentation Management will host a conference call for analysts and investors at 3:30 p.m. Central Time on Tuesday, October 20, 2026 to review third quarter 2026 results. A live listen-only webcast of the call will be available under the Investor Relations section of Hancock Whitney's website at investors.hancockwhitney.com. A link to the release with additional financial tables, and a link to a slide presentation related to third quarter 2026 results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial 833-461-5787, access code 662024071. A replay of the conference call will be available under the Investor Relations section of our website. About Hancock Whitney Since the late 1800s, Hancock Whitney has embodied core values of Honor & Integrity, Strength & Stability, Commitment to Service, Teamwork, and Personal Responsibility. Hancock Whitney offices and financial centers in Mississippi, Alabama, Florida, Louisiana, and Texas offer comprehensive financial products and services, including traditional and online banking; commercial and small business banking; private banking; trust and investment services; healthcare banking; and mortgage services. The company also operates combined loan and deposit production offices in the greater metropolitan areas of Nashville, Tennessee, and Atlanta, Georgia. More information is available at www.hancockwhitney.com. Non-GAAP Financial Measures This news release includes non-GAAP financial measures to describe Hancock Whitney's performance. These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. The reconciliations of those measures to GAAP measures are provided either in the financial tables or in Appendix A thereto. Consistent with the provisions of subpart 229.1400 of the Securities and Exchange Commission's Regulation S-K, "Disclosures by Bank and Savings and Loan Registrants," the company presents net interest income, net interest margin and efficiency ratios on a fully taxable equivalent ("TE") basis. The TE basis adjusts for the tax-favored status of net interest income from certain loans and investments using the statutory federal tax rate to increase tax-exempt interest income to a taxable equivalent basis. The company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources. The company presents certain additional non-GAAP financial measures to assist the reader with a better understanding of the company's performance period over period, as well as to provide investors with assistance in understanding the success management has experienced in executing its strategic initiatives. The company highlights certain items that are outside of our principal business and/or are not indicative of forward-looking trends in supplemental disclosures items below our GAAP financial data and presents certain "Adjusted" ratios that exclude these disclosed items. These adjusted ratios provide management or the reader with a measure that may be more indicative of forward-looking trends in our business, as well as demonstrates the effects of significant gains or losses and changes. We define Adjusted Pre-Provision Net Revenue as net income excluding provision expense and income tax expense, plus the taxable equivalent adjustment (as defined above), less supplemental disclosure items (as defined above). Management believes that adjusted pre-provision net revenue is a useful financial measure because it enables investors and others to assess the company's ability to generate capital to cover credit losses through a credit cycle. We define Adjusted Revenue as net interest income (te) and noninterest income less supplemental disclosure items. We define Adjusted Noninterest Expense as noninterest expense less supplemental disclosure items. We define our Efficiency Ratio as noninterest expense to total net interest income (te) and noninterest income, excluding amortization of purchased intangibles and supplemental disclosure items, if applicable. We define Adjusted Earnings Per Common Share – Diluted as GAAP diluted earnings per common share, adjusted for the after-tax effect of supplemental disclosure items using the applicable federal statutory tax rate. Management believes adjusted revenue, adjusted noninterest expense, the efficiency ratio and adjusted earnings per common share - diluted are useful measures as they provide a greater understanding of ongoing operations and enhance comparability with prior periods. Important Cautionary Statement about Forward-Looking Statements This release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements that we may make include statements regarding our expectations of our performance and financial condition, balance sheet and revenue growth, the provision for credit losses, capital levels, deposits (including growth, pricing, and betas), investment portfolio, other sources of liquidity, loan growth expectations, management's predictions about charge-offs for loans, the impact of current and future economic conditions, including the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment, inflationary pressures, increasing insurance costs, fluctuations in interest rates, including the impact of changes in interest rates on our financial projections, models and guidance and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing, general economic business conditions in our local markets, Federal Reserve action with respect to interest rates, the effects of war or other conflicts, acts of terrorism, climate change, the impact of natural or man-made disasters, the adequacy of our enterprise risk management framework, potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings, assessments, and enforcement actions, as well as the impact of negative developments affecting the banking industry and the resulting media coverage; the timing, benefits, costs and synergies of the merger with One Florida Bank, as well as statements regarding the potential impact of current or future business combinations on our performance and financial condition, including our ability to successfully identify acquisition targets and integrate the businesses, success of revenue-generating and cost reduction initiatives, the potential impact of third-party business combinations in our footprint on our performance and financial condition, the effectiveness of derivative financial instruments and hedging activities to manage risks, projected tax rates, increased cybersecurity risks, including potential business disruptions or financial losses, and the impact of artificial intelligence on our business operations, the adequacy of our internal controls over financial and non-financial reporting, the impact of changes in U.S. laws or policies, including those related to credit card interest rates, the financial impact of regulatory requirements and tax reform legislation, deposit trends, credit quality trends, net interest margin trends, future expense levels, future profitability, supplemental disclosure items, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts and expected returns. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words "believes," "expects," "anticipates," "estimates," "intends," "plans," "forecast," "goals," "targets," "initiatives," "focus," "potentially," "probably," "projects," "outlook," or similar expressions or future conditional verbs such as "may," "will," "should," "would," and "could." Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. Forward-looking statements are subject to significant risks and uncertainties. Any forward-looking statement made in this release is subject to the safe harbor protections set forth in the Private Securities Litigation Reform Act of 1995. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, and in other periodic reports that we file with the SEC. HANCOCK WHITNEY CORPORATION FINANCIAL HIGHLIGHTS (Unaudited) | | Three Months Ended | | Nine Months Ended (dollars and common share data in thousands, except per share amounts) | | 9/30/2026 | | 6/30/2026 | | 9/30/2025 | | 9/30/2026 | | 9/30/2025 NET INCOME | | | | | | | | | | Net interest income | | $ | 313,107 | | | $ | 293,012 | | | $ | 279,738 | | | $ | 891,284 | | | $ | 826,602 | Net interest income (TE) (a) | | | 314,898 | | | | 295,225 | | | | 282,309 | | | | 897,689 | | | | 834,475 | Provision for credit losses | | | 16,097 | | | | 13,775 | | | | 12,651 | | | | 43,044 | | | | 38,038 | Noninterest income | | | 107,011 | | | | 108,350 | | | | 106,001 | | | | 222,843 | | | | 299,316 | Noninterest expense | | | 262,001 | | | | 225,436 | | | | 212,753 | | | | 708,185 | | | | 633,791 | Income tax expense | | | 31,964 | | | | 35,190 | | | | 32,869 | | | | 78,459 | | | | 93,588 | Net income | | $ | 110,056 | | | $ | 126,961 | | | $ | 127,466 | | | $ | 284,439 | | | $ | 360,501 | Supplemental disclosure items - included above, pre-tax | | | | | | | | | | Included in provision for credit losses | | | | | | | | | | OFB Bancshares, Inc. acquired unfunded provision | | $ | 1,036 | | | $ | — | | | $ | — | | | $ | 1,036 | | | $ | — | Included in noninterest income | | | | | | | | | | Loss on securities portfolio restructure | | | — | | | | — | | | | — | | | | 98,595 | | | | — | Included in noninterest expense | | | | | | | | | | OFB Bancshares, Inc. acquisition expense | | | 29,350 | | | | — | | | | — | | | | 29,350 | | | | — | Sabal Trust Company acquisition expense | | | — | | | | — | | | | — | | | | — | | | | 5,911 | PERIOD-END BALANCE SHEET DATA | | | | | | | | | | Loans | | $ | 26,540,423 | | | $ | 24,580,173 | | | $ | 23,596,565 | | | $ | 26,540,423 | | | $ | 23,596,565 | Securities | | | 7,758,273 | | | | 7,891,359 | | | | 7,991,281 | | | | 7,758,273 | | | | 7,991,281 | Earning assets | | | 34,962,230 | | | | 33,039,464 | | | | 32,532,320 | | | | 34,962,230 | | | | 32,532,320 | Total assets | | | 38,583,463 | | | | 36,345,972 | | | | 35,766,407 | | | | 38,583,463 | | | | 35,766,407 | Noninterest-bearing deposits | | | 10,554,777 | | | | 10,336,866 | | | | 10,305,303 | | | | 10,554,777 | | | | 10,305,303 | Total deposits | | | 32,177,308 | | | | 29,629,760 | | | | 28,659,750 | | | | 32,177,308 | | | | 28,659,750 | Common stockholders' equity | | | 4,234,341 | | | | 4,444,134 | | | | 4,474,479 | | | | 4,234,341 | | | | 4,474,479 | AVERAGE BALANCE SHEET DATA | | | | | | | | | | Loans | | $ | 25,766,152 | | | $ | 24,339,904 | | | $ | 23,425,895 | | | $ | 24,697,277 | | | $ | 23,249,212 | Securities (b) | | | 8,284,750 | | | | 8,285,594 | | | | 8,383,771 | | | | 8,278,745 | | | | 8,299,542 | Earning assets | | | 34,766,919 | | | | 33,205,847 | | | | 32,213,632 | | | | 33,564,776 | | | | 32,106,914 | Total assets | | | 37,591,325 | | | | 35,881,537 | | | | 34,751,209 | | | | 36,305,606 | | | | 34,546,116 | Noninterest-bearing deposits | | | 10,383,038 | | | | 10,104,015 | | | | 10,121,707 | | | | 10,174,635 | | | | 10,200,640 | Total deposits | | | 30,924,820 | | | | 28,780,937 | | | | 28,492,076 | | | | 29,521,157 | | | | 28,630,511 | Common stockholders' equity | | | 4,389,908 | | | | 4,420,837 | | | | 4,368,746 | | | | 4,423,927 | | | | 4,279,294 | COMMON SHARE DATA | | | | | | | | | | Earnings per share - diluted | | $ | 1.36 | | | $ | 1.55 | | | $ | 1.49 | | | $ | 3.48 | | | $ | 4.17 | Cash dividends per share | | | 0.50 | | | | 0.50 | | | | 0.45 | | | | 1.50 | | | | 1.35 | Book value per share (period-end) | | | 53.27 | | | | 55.23 | | | | 52.82 | | | | 53.27 | | | | 52.82 | Tangible book value per share (period-end) | | | 37.83 | | | | 42.95 | | | | 41.07 | | | | 37.83 | | | | 41.07 | Weighted average number of shares - diluted | | | 80,612 | | | | 81,485 | | | | 85,453 | | | | 81,445 | | | | 85,977 | Period-end number of shares | | | 79,493 | | | | 80,471 | | | | 84,711 | | | | 79,493 | | | | 84,711 | Market data | | | | | | | | | | High sales price | | $ | 80.13 | | | $ | 75.25 | | | $ | 64.66 | | | $ | 80.13 | | | $ | 64.66 | Low sales price | | | 71.67 | | | | 62.16 | | | | 56.87 | | | | 59.97 | | | | 43.90 | Period-end closing price | | | 72.04 | | | | 74.72 | | | | 62.61 | | | | 72.04 | | | | 62.61 | Trading volume | | | 53,095 | | | | 55,444 | | | | 51,077 | | | | 162,212 | | | | 136,219 | PERFORMANCE RATIOS | | | | | | | | | | Return on average assets | | | 1.16 | % | | | 1.42 | % | | | 1.46 | % | | | 1.05 | % | | | 1.40 | % Return on average common equity | | | 9.95 | % | | | 11.52 | % | | | 11.58 | % | | | 8.60 | % | | | 11.26 | % Return on average tangible common equity | | | 13.46 | % | | | 14.84 | % | | | 15.00 | % | | | 11.25 | % | | | 14.48 | % Tangible common equity ratio (c) | | | 8.05 | % | | | 9.78 | % | | | 10.01 | % | | | 8.05 | % | | | 10.01 | % Net interest margin (TE) | | | 3.61 | % | | | 3.56 | % | | | 3.49 | % | | | 3.57 | % | | | 3.47 | % Noninterest income as a percentage of total revenue (TE) | | | 25.36 | % | | | 26.85 | % | | | 27.30 | % | | | 19.89 | % | | | 26.40 | % Efficiency ratio (d) | | | 54.46 | % | | | 55.31 | % | | | 54.10 | % | | | 55.05 | % | | | 54.73 | % Average loan/deposit ratio | | | 83.32 | % | | | 84.57 | % | | | 82.22 | % | | | 83.66 | % | | | 81.20 | % Allowance for loan losses as a percentage of period-end loans | | | 1.28 | % | | | 1.27 | % | | | 1.33 | % | | | 1.28 | % | | | 1.33 | % Allowance for credit losses as a percentage of period-end loans (e) | | | 1.42 | % | | | 1.42 | % | | | 1.45 | % | | | 1.42 | % | | | 1.45 | % Annualized net charge-offs to average loans | | | 0.16 | % | | | 0.16 | % | | | 0.19 | % | | | 0.17 | % | | | 0.23 | % Allowance for loan losses as a % of nonaccrual loans | | | 254.74 | % | | | 274.99 | % | | | 276.20 | % | | | 254.74 | % | | | 276.20 | % FTE headcount | | | 3,803 | | | | 3,674 | | | | 3,603 | | | | 3,803 | | | | 3,603 | (a) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%. (b) Average securities does not include unrealized holding gains/losses on available for sale securities. (c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. (d) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and supplemental disclosure items noted above. (e) The allowance for credit losses includes the allowance for loan and lease losses and the reserve for unfunded lending commitments. HANCOCK WHITNEY CORPORATION QUARTERLY FINANCIAL HIGHLIGHTS (Unaudited) | | Three Months Ended (dollars and common share data in thousands, except per share amounts) | | 9/30/2026 | | 6/30/2026 | | 3/31/2026 | | 12/31/2025 | | 9/30/2025 NET INCOME | | | | | | | | | | Net interest income | | $ | 313,107 | | | $ | 293,012 | | | $ | 285,165 | | | $ | 282,170 | | | $ | 279,738 | Net interest income (TE) (a) | | | 314,898 | | | | 295,225 | | | | 287,566 | | | | 284,675 | | | | 282,309 | Provision for credit losses | | | 16,097 | | | | 13,775 | | | | 13,172 | | | | 13,145 | | | | 12,651 | Noninterest income | | | 107,011 | | | | 108,350 | | | | 7,482 | | | | 107,131 | | | | 106,001 | Noninterest expense | | | 262,001 | | | | 225,436 | | | | 220,748 | | | | 217,850 | | | | 212,753 | Income tax expense | | | 31,964 | | | | 35,190 | | | | 11,305 | | | | 32,734 | | | | 32,869 | Net income | | $ | 110,056 | | | $ | 126,961 | | | $ | 47,422 | | | $ | 125,572 | | | $ | 127,466 | Supplemental disclosure items - included above, pre-tax | | | | | | | | | | Included in provision for credit losses | | | | | | | | | | OFB Bancshares, Inc. acquired unfunded provision | | $ | 1,036 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | Included in noninterest income | | | | | | | | | | Loss on securities portfolio restructure | | | — | | | | — | | | | 98,595 | | | | — | | | | — | Included in noninterest expense | | | | | | | | | | OFB Bancshares, Inc. acquisition expense | | | 29,350 | | | | — | | | | — | | | | — | | | | — | PERIOD-END BALANCE SHEET DATA | | | | | | | | | | Loans | | $ | 26,540,423 | | | $ | 24,580,173 | | | $ | 23,991,840 | | | $ | 23,958,440 | | | $ | 23,596,565 | Securities | | | 7,758,273 | | | | 7,891,359 | | | | 8,028,014 | | | | 8,094,799 | | | | 7,991,281 | Earning assets | | | 34,962,230 | | | | 33,039,464 | | | | 32,306,650 | | | | 32,218,663 | | | | 32,532,320 | Total assets | | | 38,583,463 | | | | 36,345,972 | | | | 35,542,126 | | | | 35,472,762 | | | | 35,766,407 | Noninterest-bearing deposits | | | 10,554,777 | | | | 10,336,866 | | | | 10,344,878 | | | | 10,374,991 | | | | 10,305,303 | Total deposits | | | 32,177,308 | | | | 29,629,760 | | | | 29,082,134 | | | | 29,279,774 | | | | 28,659,750 | Common stockholders' equity | | | 4,234,341 | | | | 4,444,134 | | | | 4,419,592 | | | | 4,460,117 | | | | 4,474,479 | AVERAGE BALANCE SHEET DATA | | | | | | | | | | Loans | | $ | 25,766,152 | | | $ | 24,339,904 | | | $ | 23,965,993 | | | $ | 23,715,763 | | | $ | 23,425,895 | Securities (b) | | | 8,284,750 | | | | 8,285,594 | | | | 8,265,682 | | | | 8,484,162 | | | | 8,383,771 | Earning assets | | | 34,766,919 | | | | 33,205,847 | | | | 32,698,837 | | | | 32,598,315 | | | | 32,213,632 | Total assets | | | 37,591,325 | | | | 35,881,537 | | | | 35,420,096 | | | | 35,227,286 | | | | 34,751,209 | Noninterest-bearing deposits | | | 10,383,038 | | | | 10,104,015 | | | | 10,033,006 | | | | 10,165,806 | | | | 10,121,707 | Total deposits | | | 30,924,820 | | | | 28,780,937 | | | | 28,834,747 | | | | 28,816,539 | | | | 28,492,076 | Common stockholders' equity | | | 4,389,908 | | | | 4,420,837 | | | | 4,461,827 | | | | 4,417,711 | | | | 4,368,746 | COMMON SHARE DATA | | | | | | | | | | Earnings per share - diluted | | $ | 1.36 | | | $ | 1.55 | | | $ | 0.57 | | | $ | 1.49 | | | $ | 1.49 | Cash dividends per share | | | 0.50 | | | | 0.50 | | | | 0.50 | | | | 0.45 | | | | 0.45 | Book value per share (period-end) | | | 53.27 | | | | 55.23 | | | | 54.46 | | | | 54.22 | | | | 52.82 | Tangible book value per share (period-end) | | | 37.83 | | | | 42.95 | | | | 42.26 | | | | | | | | 41.07 | Weighted average number of shares - diluted | | | 80,612 | | | | 81,485 | | | | 82,261 | | | | 83,791 | | | | 85,453 | Period-end number of shares | | | 79,493 | | | | 80,471 | | | | 81,152 | | | | 82,259 | | | | 84,711 | Market data | | | | | | | | | | High sales price | | $ | 80.13 | | | $ | 75.25 | | | $ | 75.43 | | | $ | 67.10 | | | $ | 64.66 | Low sales price | | | 71.67 | | | | 62.16 | | | | 59.97 | | | | 54.05 | | | | 56.87 | Period-end closing price | | | 72.04 | | | | 74.72 | | | | 63.59 | | | | 63.68 | | | | 62.61 | Trading volume | | | 53,095 | | | | 55,444 | | | | 53,673 | | | | 55,269 | | | | 51,077 | PERFORMANCE RATIOS | | | | | | | | | | Return on average assets | | | 1.16 | % | | | 1.42 | % | | | 0.54 | % | | | 1.41 | % | | | 1.46 | % Return on average common equity | | | 9.95 | % | | | 11.52 | % | | | 4.31 | % | | | 11.28 | % | | | 11.58 | % Return on average tangible common equity | | | 13.46 | % | | | 14.84 | % | | | 5.54 | % | | | 14.55 | % | | | 15.00 | % Tangible common equity ratio (c) | | | 8.05 | % | | | 9.78 | % | | | 9.93 | % | | | 10.06 | % | | | 10.01 | % Net interest margin (TE) | | | 3.61 | % | | | 3.56 | % | | | 3.55 | % | | | 3.48 | % | | | 3.49 | % Noninterest income as a percentage of total revenue (TE) | | | 25.36 | % | | | 26.85 | % | | | 2.54 | % | | | 27.34 | % | | | 27.30 | % Efficiency ratio (d) | | | 54.46 | % | | | 55.31 | % | | | 55.43 | % | | | 54.93 | % | | | 54.10 | % Average loan/deposit ratio | | | 83.32 | % | | | 84.57 | % | | | 83.11 | % | | | 82.30 | % | | | 82.22 | % Allowance for loan losses as a percentage of period-end loans | | | 1.28 | % | | | 1.27 | % | | | 1.30 | % | | | 1.28 | % | | | 1.33 | % Allowance for credit losses as a percentage of period-end loans (e) | | | 1.42 | % | | | 1.42 | % | | | 1.43 | % | | | 1.43 | % | | | 1.45 | % Annualized net charge-offs to average loans | | | 0.16 | % | | | 0.16 | % | | | 0.19 | % | | | 0.22 | % | | | 0.19 | % Allowance for loan losses as a % of nonaccrual loans | | | 254.74 | % | | | 274.99 | % | | | 274.67 | % | | | 287.95 | % | | | 276.20 | % FTE headcount | | | 3,803 | | | | 3,674 | | | | 3,658 | | | | 3,627 | | | | 3,603 | (a) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%. (b) Average securities does not include unrealized holding gains/losses on available for sale securities. (c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. (d) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and supplemental disclosure items noted above. (e) The allowance for credit losses includes the allowance for loan and lease losses and the reserve for unfunded lending commitments. View source version on businesswire.com: https://www.businesswire.com/news/home/20261020107555/en/ Contacts Ashleigh Flower Wilshire, SVP, Head of Investor Relations 504.299.5076 or [email protected]

Hancock Whitney (HWC) came out with quarterly earnings of $1.66 per share, beating the Zacks Consensus Estimate of $1.65 per share. This compares to earnings of $1.49 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +0.61%. A quarter ago, it was expected that this holding company of Whitney Bank and Hancock Bank would post earnings of $1.55 per share when it actually produced earnings of $1.55, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Hancock Whitney, which belongs to the Zacks Banks - Southeast industry, posted revenues of $420.12 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.30%. This compares to year-ago revenues of $385.74 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hancock Whitney shares have added about 13.9% since the beginning of the year versus the S&P 500's gain of 12.4%. While Hancock Whitney has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hancock Whitney was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.74 on $431.65 million in revenues for the coming quarter and $6.45 on $1.54 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, OptimumBank Holdings, Inc. (OPHC), is yet to report results for the quarter ended September 2026. This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. OptimumBank Holdings, Inc.'s revenues are expected to be $17.65 million, up 35.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hancock Whitney Corporation (HWC) : Free Stock Analysis Report OptimumBank Holdings, Inc. (OPHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended September 2026, Hancock Whitney (HWC) reported revenue of $420.12 million, up 8.9% over the same period last year. EPS came in at $1.66, compared to $1.49 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $418.85 million, representing a surprise of +0.3%. The company delivered an EPS surprise of +0.61%, with the consensus EPS estimate being $1.65. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Hancock Whitney performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Net interest margin (TE): 3.6% compared to the 3.6% average estimate based on six analysts. - Efficiency Ratio: 54.5% compared to the 56.2% average estimate based on six analysts. - Total net charge-offs as a percentage of average loans: 0.2% compared to the 0.2% average estimate based on five analysts. - Average Balance - Earning assets: $34.77 billion versus $34.61 billion estimated by four analysts on average. - Nonaccrual loans: $133.34 million versus the three-analyst average estimate of $113.74 million. - Total nonaccrual loans + ORE and foreclosed assets (Total nonperforming assets): $144.26 million versus the three-analyst average estimate of $126.45 million. - Total Noninterest Income: $107.01 million compared to the $110.13 million average estimate based on six analysts. - Net interest income (TE): $314.9 million versus $310.11 million estimated by six analysts on average. - Net Interest Income: $313.11 million versus $308.86 million estimated by five analysts on average. - Secondary mortgage market operations: $2.86 million compared to the $3.78 million average estimate based on four analysts. - Bank card and ATM fees: $22.98 million versus the four-analyst average estimate of $23.36 million. - Investment and annuity fees and insurance commissions: $13.87 million compared to the $15.33 million average estimate based on four analysts. View all Key Company Metrics for Hancock Whitney here>>> Shares of Hancock Whitney have returned -2.7% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hancock Whitney Corporation (HWC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Interested in Hancock Whitney Corporation? Here are five stocks we like better. - Third-quarter profitability improved: Adjusted EPS rose 17% year over year to $1.66, while adjusted pre-provision net revenue increased 6% sequentially to $189 million. Results included the completed Aug. 1 acquisition of One Florida Bank. - Balance-sheet growth remains strong: Organic loans grew at a 4% annualized rate and deposits at 9%, with management maintaining its outlook for low-double-digit full-year loan and deposit growth. Net interest margin expanded to 3.61%, though higher deposit costs are expected to limit further gains. - Credit remained stable, but capital declined: Criticized commercial loans fell for the seventh straight quarter and net charge-offs held at 16 basis points, while tangible common equity dropped to 8.05% after the acquisition and share repurchases. The bank expects to pause additional buybacks until interest-rate conditions become clearer. - 3 Overlooked Dividend Stocks for Choppy Markets in 2026 Hancock Whitney (NASDAQ:HWC) reported third-quarter 2026 results marked by higher profitability, balance-sheet growth and the completed acquisition of One Florida Bank, while management maintained its outlook for low-double-digit full-year loan and deposit growth. President and Chief Executive Officer John Hairston said adjusted earnings per share increased 17% from the year-earlier quarter after excluding acquisition-related expenses, while pre-provision net revenue rose 8%. The company completed its acquisition of One Florida Bank on Aug. 1, adding colleagues and clients in Florida. → Berkshire Just Backed This Little-Known Stock—Should You Chase It? - Analysts Remain Bullish On These 3 Regional Banks Chief Financial Officer Mike Achary said adjusted net income totaled $134 million, or $1.66 per share, compared with $127 million, or $1.55 per share, in the second quarter. Adjusted pre-provision net revenue rose 6% sequentially to $189 million, representing a 2% return on average assets. Excluding loans acquired in the One Florida transaction, Hancock Whitney said loans grew at a 4% annualized rate during the quarter. Growth was led by commercial real estate lending across multiple products and continued expansion in equipment finance. Hairston said loan production remained strong and line utilization was consistent with the prior quarter. → These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Deposits, excluding acquired One Florida balances, increased at a 9% annualized rate. The growth was driven by interest-bearing transaction accounts, supported by promotional products, pricing and client relationships, management said. The company expects organic balance-sheet growth to continue in the fourth quarter. Achary said promotional rates on certificates of deposit and money market accounts have helped drive deposit inflows, though they also contributed to higher funding costs. He said the bank is building liquidity not only for current loan demand but also for expected growth over the coming quarters. → Broadcom's CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom Management said noninterest-bearing deposit balances declined during the third quarter, partly because some One Florida clients shifted funds into money market accounts and partly because of normal seasonality in commercial, consumer and public-fund accounts. The company expects a portion of those balances to return in the fourth quarter. Hairston said the bank is adding treasury-services personnel and considering deposit-focused positions to support operating-account growth among small and medium-sized businesses. He said bankers hired since the beginning of 2025 contributed 55% of year-to-date loan growth in 2026 and 77% of third-quarter loan growth. Net interest income increased 7% in the third quarter, while net interest margin expanded 5 basis points to 3.61% from 3.56% in the second quarter. Achary said 4 basis points of the improvement came from purchase-accounting accretion tied to the One Florida acquisition. The remaining margin expansion reflected a 12-basis-point increase in earning-asset yields, including higher bond-portfolio and loan yields. Bond-portfolio yields rose 11 basis points to 3.46% as principal cash flows were reinvested, while loan yields also increased 11 basis points. Average loans rose $1.4 billion sequentially, including $299 million excluding One Florida. Deposit costs rose 12 basis points to 1.55%, primarily due to promotional pricing for interest-bearing transaction accounts and certain CD maturity buckets. Management expects a comparable increase in deposit costs during the fourth quarter, while projecting modest net interest margin expansion of roughly 3 to 5 basis points. The company's outlook assumes a 25-basis-point Federal Reserve rate increase in December, which Achary said would have minimal fourth-quarter effect because of its timing. Hancock Whitney described itself as modestly asset sensitive and said it would benefit from higher rates, although Hairston noted that substantially higher borrowing costs could eventually reduce demand for new projects. - Full-year loan and deposit growth: low double digits - Net interest income growth: 9% to 9.5% - Fee income growth: 5.5% to 6% - Operating expense growth: 8% to 8.5% - Pre-provision net revenue growth: 8% to 8.5% Credit quality remained stable, according to management. Criticized commercial loans declined for a seventh consecutive quarter, falling $7 million to $485 million. Nonaccrual loans increased $19 million to $133 million, while net charge-offs were flat sequentially at 16 basis points. The allowance for credit losses stood at 1.42% of loans. Hancock Whitney continues to expect full-year net charge-offs of 15 to 25 basis points of average loans. Hairston said the company remains well reserved and views overall asset quality as stable. On capital, tangible common equity fell to 8.05%, down 173 basis points from the prior quarter. Achary attributed the decline primarily to the cash acquisition of One Florida, third-quarter share repurchases and a reduction in accumulated other comprehensive income amid an 82-basis-point increase in the 10-year Treasury yield during the quarter. The company repurchased 1 million shares in the third quarter and has authorization for another 1 million shares this year. However, Achary said Hancock Whitney will likely pause additional repurchases until there is more clarity on interest rates, citing the bank's 8.05% tangible common equity ratio. The company's Common Equity Tier 1 ratio was 11.53%. Management said it remains focused on organic growth following the One Florida closing and upcoming conversion. While the company will continue to evaluate merger-and-acquisition opportunities, Achary said such activity will be considered opportunistically. Hairston said the bank does not plan to expand its energy-loan concentration, which is below 1% following its prior exit from reserve-based lending and midstream services. Instead, the company expects commercial real estate, construction and development, health care and commercial-and-industrial lending to be key contributors to fourth-quarter growth. He also cited manufacturing, data-center and infrastructure investment in Mississippi and Louisiana as beneficial to the company's footprint. At present, Hairston said those projects are having a greater effect on deposits than lending, though borrowing opportunities could increase as projects progress. Hancock Whitney Corporation is a financial services company headquartered in Gulfport, Mississippi, and the parent company of Hancock Whitney Bank. The bank provides banking and financial services to individuals, businesses, and institutions through branches and digital banking channels. Its products and services include checking and savings accounts, consumer and commercial lending, residential mortgages, credit cards, treasury and cash management services, and online and mobile banking. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hancock Whitney Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Wall Street analysts forecast that Hancock Whitney (HWC) will report quarterly earnings of $1.65 per share in its upcoming release, pointing to a year-over-year increase of 10.7%. It is anticipated that revenues will amount to $418.85 million, exhibiting an increase of 8.6% compared to the year-ago quarter. The consensus EPS estimate for the quarter has undergone a downward revision of 0.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock. While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective. Given this perspective, it's time to examine the average forecasts of specific Hancock Whitney metrics that are routinely monitored and predicted by Wall Street analysts. Analysts forecast 'Net interest margin (TE)' to reach 3.6%. The estimate compares to the year-ago value of 3.5%. According to the collective judgment of analysts, 'Efficiency Ratio' should come in at 56.2%. The estimate compares to the year-ago value of 54.1%. The collective assessment of analysts points to an estimated 'Average Balance - Total interest earning assets' of $34.61 billion. Compared to the current estimate, the company reported $32.21 billion in the same quarter of the previous year. Analysts' assessment points toward 'Total nonperforming loans' reaching $113.74 million. The estimate compares to the year-ago value of $113.55 million. Based on the collective assessment of analysts, 'Total nonperforming assets (Total nonaccrual loans + ORE and foreclosed assets)' should arrive at $126.45 million. The estimate is in contrast to the year-ago figure of $124.69 million. It is projected by analysts that the 'Total Noninterest Income' will reach $110.13 million. The estimate is in contrast to the year-ago figure of $106.00 million. The consensus among analysts is that 'Net interest income (TE)' will reach $310.11 million. The estimate is in contrast to the year-ago figure of $282.31 million. The consensus estimate for 'Net Interest Income' stands at $308.86 million. The estimate is in contrast to the year-ago figure of $279.74 million. Analysts expect 'Secondary mortgage market operations' to come in at $3.78 million. Compared to the current estimate, the company reported $3.48 million in the same quarter of the previous year. The average prediction of analysts places 'Bank card and ATM fees' at $23.36 million. Compared to the current estimate, the company reported $21.81 million in the same quarter of the previous year. Analysts predict that the 'Investment and annuity fees and insurance commissions' will reach $15.33 million. The estimate is in contrast to the year-ago figure of $14.51 million. The combined assessment of analysts suggests that 'Other income' will likely reach $15.41 million. Compared to the current estimate, the company reported $16.77 million in the same quarter of the previous year. View all Key Company Metrics for Hancock Whitney here>>> Shares of Hancock Whitney have demonstrated returns of -3.6% over the past month compared to the Zacks S&P 500 composite's +1.4% change. With a Zacks Rank #2 (Buy), HWC is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hancock Whitney Corporation (HWC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research