Three U.S. bank stocks—Hancock Whitney Corp., The Bancorp Inc. and Midland States Bancorp Inc.—could receive an earnings lift if persistent inflation pushes the Federal Reserve to raise interest rates again, although higher funding expenses and credit risk could offset much of that benefit.

The renewed focus on rate-sensitive lenders follows the Federal Open Market Committee’s July 29 decision to keep the federal funds target range at 3.5% to 3.75%. The Fed said economic activity had continued to expand and inflation remained above its longer-run objective. The decision drew three dissents, underscoring disagreement over the appropriate policy setting as officials balance price pressures against labor-market conditions.

Market rates have already moved independently of the policy rate. At his post-meeting news conference, Fed Chairman Kevin Warsh said nominal and inflation-adjusted Treasury yields had risen materially across the curve between meetings. Higher Treasury yields can raise borrowing costs throughout the economy and affect the value of banks’ securities portfolios even before the central bank changes its overnight rate.

For banks, the central question is net interest margin—the difference between the yield earned on loans and other assets and the cost of deposits and wholesale funding. An institution with many variable-rate loans and relatively stable, low-cost deposits can benefit when rates rise. A bank that must offer substantially higher rates to retain depositors, or that holds large amounts of long-duration fixed-rate assets, may see little benefit and could come under pressure.

Hancock Whitney, traded on Nasdaq under HWC, presents the most traditional regional-bank case among the three. Based in Gulfport, Mississippi, it operates across Mississippi, Alabama, Florida, Louisiana and Texas, serving commercial, small-business and retail customers. That Southeastern footprint gives it access to a broad base of operating accounts and local customer relationships that can help control funding costs.

The company reported second-quarter 2026 earnings per share of $1.55. Taxable-equivalent net interest income reached $295.2 million, up $7.7 million, or 3%, from the previous quarter. Its taxable-equivalent net interest margin was 3.56%, one basis point higher sequentially. A higher investment-portfolio yield and a lower cost of deposits supported the improvement, while borrowing costs and slightly lower loan yields worked in the opposite direction.

Those results show why another rate increase could help but also why the effect is not guaranteed. If loan yields and returns on securities reprice upward faster than deposits, Hancock Whitney could expand its margin. If customers move cash into higher-yielding accounts or competing institutions, the bank may have to pay more for funding and surrender part of that gain.

Hancock Whitney is also pursuing growth through acquisitions. It completed its acquisition of OFB Bancshares and One Florida Bank on Aug. 1, expanding its presence in Florida, while its planned Sabal Trust transaction is intended to add wealth-management capabilities and fee income. The deals could diversify revenue and create operating efficiencies, but integration expenses, customer retention and execution will remain important variables.

The Bancorp, traded as TBBK, offers a less conventional rate-sensitivity story. The Wilmington, Delaware-based financial holding company provides specialized credit products, including securities-backed and insurance-policy-backed lines, Small Business Administration lending, commercial fleet leasing and real-estate bridge loans. It also supplies card issuing, payment processing and other infrastructure used by fintech companies and corporate clients.

The company reported second-quarter net income of $60.7 million, or $1.45 per diluted share, representing a 14.2% increase in diluted earnings per share from a year earlier. Its annualized return on assets was 2.51%, while return on equity reached 34.7%, according to the company’s earnings release. Management attributed the performance to loan growth, higher fintech fees, improved credit trends and cost efficiencies.

The Bancorp’s attraction in a rising-rate scenario comes from the potential for floating-rate and specialized loans to reset upward, supporting interest income. Its fintech business can also generate fee revenue that is not tied directly to the spread between loan and deposit rates. That combination may provide a degree of diversification unavailable to a purely branch-based community bank.

Its risks are equally distinctive. Specialized commercial credit and real-estate bridge lending can produce higher yields, but they may carry greater losses if borrowers struggle with refinancing or property values weaken. Dependence on a concentrated group of fintech programs and partners also creates operational, compliance and customer-concentration risks. Higher rates would be helpful only if additional interest revenue exceeds funding costs and credit provisions.

Midland States Bancorp, listed as MSBI, provides a third approach. The Effingham, Illinois-based company combines community banking with commercial lending, equipment finance and wealth management. It has been simplifying its balance sheet by allowing specialty-finance and other noncore loans to run off while emphasizing core deposits and community-bank relationships.

Midland reported second-quarter net income available to common shareholders of $17.7 million, or 82 cents per diluted share, up from $16.2 million, or 74 cents per share, in the first quarter. Net interest margin expanded to 3.98% from 3.91%, while the cost of deposits declined three basis points to 1.78%. Deposits increased by $267.2 million during the quarter, providing a larger funding base.

The company’s total loans declined by $94.9 million, primarily because of the planned runoff of specialty-finance and noncore portfolios. Community Bank loans increased modestly. That reshaping could reduce exposure to less strategic assets and improve the quality of future earnings, though a smaller loan book can also limit the immediate revenue benefit from rising rates.

Midland’s capital position provides another consideration. It ended the second quarter with total capital equal to 15.77% of risk-weighted assets and a common equity Tier 1 ratio of 10.39%. Nonperforming assets were 0.91% of total assets, unchanged from the previous quarter. Stronger capital can give a bank more room to absorb losses or pursue growth, but it does not eliminate the risk of deterioration in commercial real estate, consumer credit or small-business lending.

Across all three stocks, another Fed increase would be only one part of the investment case. Banks benefit most when asset yields rise quickly, deposits remain stable, borrowers continue to demand credit and defaults stay contained. A rate increase prompted by stubborn inflation could instead weaken consumer spending and business investment, reduce loan originations and make existing debts harder to service.

Investors also face valuation and liquidity differences. Hancock Whitney is an established midsize regional institution, The Bancorp is a specialized bank with substantial fintech exposure, and Midland States is a smaller community-focused lender undergoing a balance-sheet transformation. Smaller banking stocks can experience sharper price movements and less trading liquidity than the nation’s largest banks.

The freshest evidence supports a conditional conclusion: each company has characteristics that could convert higher market or policy rates into stronger revenue, but none is a simple wager on the Fed. Deposit behavior, asset quality, capital allocation and management execution are likely to determine whether wider loan yields ultimately reach shareholders.