HWCPZ — Hancock Whitney Corporation - 6

Hancock Whitney Corporation (HWCPZ) Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Net Income: $127 million, or $1.55 per share, up from $125 million or $1.52 per share in Q1 2026.
• Pre-Provision Net Revenue (PPNR): Increased 3% quarter-over-quarter to $178 million, with a return on average assets (ROA) of 1.99%.
• Loan Growth: 5% year-over-year, with a linked quarter annualized growth of 10% ($588 million in new loans).
• Deposit Growth: 2% year-over-year, with an annualized growth of 8% in Q2 2026, driven by interest-bearing accounts.
• Efficiency Ratio: 55.3%, with a return on tangible common equity (ROTCE) of 14.9%.
• Net Interest Margin (NIM): Slightly improved to 3.56%, with a modest increase in earning asset yields.

2. Strategic Updates and Business Highlights:

• The company added 15 net new bankers in Q2, totaling 42 for the year, towards an annual goal of 50.
• Successful completion of the 1 Florida Bank acquisition, with expected closing on August 1, 2026, which is anticipated to enhance profitability and growth.
• Continued strong performance in fee income, particularly in investment, annuity income, and trust services, despite some unpredictability in syndication fees.

3. Forward Guidance and Outlook:

• Loan and Deposit Growth: Guidance for loans remains mid-single digits, while deposits have been updated to low to mid-single digit growth.
• Net Interest Income: Expected to grow by 8% to 9% in the second half of 2026, with fee income anticipated to increase by 6% to 7%.
• Operating Expenses: Projected to rise by 7.5% to 8.5%, reflecting costs associated with new hires and merit increases.
• PPNR Growth: Expected to increase by 7% to 8% in the second half of 2026.

4. Bad News, Challenges, or Points of Concern:

• Competitive Pressure: The loan market remains highly competitive, with a noted increase in credit supply against limited demand, potentially impacting future growth.
• Loan Yield Decline: New loan yields have decreased, with a noted drop in new loan rates, which could affect profitability.
• Deposit Costs Rising: Anticipated increases in deposit costs as promotional rates are implemented, which may pressure net interest margins moving forward.
• Economic Environment: The evolving economic landscape, including potential rate increases and inflation, could dampen loan demand and overall growth.

5. Notable Q&A Insights:

• Management acknowledged strong loan production but reiterated a cautious outlook for the second half of the year due to macroeconomic conditions.
• The competitive landscape for deposits is rational but remains aggressive, with management focusing on balancing loan growth with deposit funding.
• The company is optimistic about its wealth management segment, which has shown strong performance, contributing to improved fee income.
• Discussions around potential future M&A were tempered, focusing first on the successful integration of 1 Florida Bank before considering additional expansion.

Overall, Hancock Whitney Corporation reported solid financial performance in Q2 2026, with strategic growth initiatives underway, though it faces competitive pressures and economic uncertainties that may impact future results.