EX-99.1 2 hwc-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

img88180657_0.jpg 

 

FOR IMMEDIATE RELEASE

January 16, 2024

For more information

Kathryn Shrout Mistich, VP, Investor Relations Manager

504.539.7836 or kathryn.mistich@hancockwhitney.com

 

 

Hancock Whitney reports fourth quarter 2023 EPS of $0.58

 

GULFPORT, Miss. (January 16, 2024) — Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the fourth quarter of 2023. Net income for the fourth quarter of 2023 totaled $50.6 million, or $0.58 per diluted common share (EPS), compared to $97.7 million, or $1.12 per diluted common share, in the third quarter of 2023. The fourth quarter of 2023 included a net charge of $75.4 million, or $0.68 per diluted share after-tax, of supplemental disclosure items, related to a loss on the securities portfolio restructuring, sale of a parking facility, and FDIC Special Assessment. Excluding the impact of these supplemental disclosure items, EPS would be $1.26, up $0.14 linked-quarter. The company reported net income for the fourth quarter of 2022 of $143.8 million, or $1.65 per diluted common share. There were no supplemental disclosure items in the fourth quarter of 2022.

Fourth Quarter 2023 Highlights

•
Net income totaled $50.6 million, compared to $97.7 million in prior quarter
•
Adjusted pre-provision net revenue (PPNR) totaled $157.5 million, up $4.1 million, or 3% linked-quarter
•
Loans declined $61.8 million, or 1% LQA
•
Deposits decreased $630.3 million, or 8% LQA, primarily due to maturity of $567.5 million in brokered deposits
•
Criticized commercial loans and nonaccrual loans remain at low levels
•
ACL coverage remained solid at 1.41%, up 1 bp compared to prior quarter
•
NIM stable at 3.27%, compared to 3Q23
•
CET1 ratio estimated at 12.39%, up 33 bps linked-quarter; TCE ratio 8.37%, up 103 bps linked-quarter
•
Efficiency ratio 55.58%

“Fourth quarter’s results reflect a strong finish to 2023,” said John M. Hairston, President & CEO. “We are pleased to report that our adjusted PPNR increased 3% linked-quarter, our efficiency ratio improved to 55.58%, and our NIM was flat with prior quarter. Excluding the supplemental disclosure items, we achieved fee income growth while reducing expenses. NIM was supported by improved loan yields, lower short-term borrowing costs, and the impacts of the bond portfolio restructure. Total loans were relatively flat this quarter and deposit balances declined as higher-cost brokered deposits

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matured. As we previously disclosed, our charge-offs have begun to normalize, but we do not see any broad signs of weakening and our problem credit metrics remain at, or near, historically low levels. We maintained a robust ACL to loans of 1.41% and we continued to grow capital this quarter. We ended the quarter with TCE above 8% and total risk-based capital at 14%; we remain well-capitalized, including all unrealized losses in our portfolio. We are looking forward to carrying the momentum from the strong year-end finish into 2024, not only for our company, but for our clients, associates, and communities we serve.”

Loans

Total loans were $23.9 billion at December 31, 2023, down $61.8 million, or less than 1%, from September 30, 2023. One-time close products drove the increase in mortgage loans, which convert from construction to mortgages upon construction completion.

Average loans totaled $23.8 billion for the fourth quarter of 2023, virtually unchanged linked-quarter. Management expects 2024 period-end loan growth to be low single digits from year-end 2023, mostly in the second half of 2024.

Deposits

Total deposits at December 31, 2023 were $29.7 billion, down $630.3 million, or 2%, from September 30, 2023. The linked-quarter decline in deposits was driven primarily by brokered deposit maturities. Additionally, there was an increase in retail time deposits related to a continued mix shift from DDA deposits and an increase in interest-bearing public funds due to year-end seasonality, offset by a decrease in noninterest bearing DDAs. Interest-bearing transaction and savings remain mostly stable due to competitive rates offered.

DDAs totaled $11.0 billion at December 31, 2023, down $595.9 million, or 5%, from September 30, 2023 and comprised 37% of total period-end deposits. Interest-bearing transaction and savings deposits totaled $10.7 billion at the end of the fourth quarter of 2023, virtually unchanged linked-quarter. Compared to September 30, 2023, retail time deposits of $4.3 billion were up $251.6 million, or 6%, and brokered deposits were $589.8 million, down $567.5 million, or 49%, compared to the prior quarter. Interest-bearing public fund deposits increased $289.8 million, or 10%, linked-quarter, ending December 31, 2023 at $3.1 billion.

Average deposits for the fourth quarter of 2023 were $30.0 billion, up $217.8 million, or 1%, linked-quarter. Management expects 2024 period-end deposit level growth to be low single digits, compared to year-end 2023.

Asset Quality

The total allowance for credit losses (ACL) was $336.8 million at December 31, 2023, up $0.9 million, or less than 1%, from September 30, 2023. During the fourth quarter of 2023, the company recorded a provision for credit losses of $17.0 million, compared to a provision for credit losses of $28.5 million in the third quarter of 2023. There were $16.1 million of net charge-offs in the fourth quarter of 2023, or 0.27% of average total loans on an annualized basis, compared to net charge-offs of $38.3 million, or 0.64% of average total loans in the third quarter of 2023. The ratio of ACL to period-end loans was 1.41% at December 31, 2023, compared to 1.40% at September 30, 2023.

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Criticized commercial loans and nonaccrual loans remained at low levels at December 31, 2023. Criticized commercial loans totaled $273.7 million, or 1.47% of total commercial loans, at December 31, 2023, compared to $275.1 million, or 1.46% of total commercial loans at September 30, 2023. Nonaccrual loans totaled $59.0 million, or 0.25% of total loans, at December 31, 2023, compared to $60.3 million, or 0.25% of total loans, at September 30, 2023. ORE and foreclosed assets were $3.6 million, down $0.9 million, linked-quarter.

Net Interest Income and Net Interest Margin (NIM)

Net interest income (TE) for the fourth quarter of 2023 was $272.3 million, an increase of $0.2 million, or less than 1%, from the third quarter of 2023. The net interest margin (NIM) (TE) was 3.27% in the fourth quarter of 2023, unchanged linked-quarter. A change in the mix of earning assets and loan yields (+8 bps), decreased short term borrowing costs (+6 bps) and impact from the securities portfolio restructuring (+ 3 bps) led to a 17 basis point improvement in the NIM, offset by the impact of deposit remix and rates (-17 bps). Additional NIM detail and guidance is included in the fourth quarter of 2023 earnings investor deck.

Average earning assets were $33.1 billion for the fourth quarter of 2023, virtually unchanged, from the third quarter of 2023.

Noninterest Income

Noninterest income totaled $39.0 million for the fourth quarter of 2023, down $47.0 million, or 55%, from the third quarter of 2023. Included in noninterest income were two supplemental disclosure items of a $16.1 million gain on the sale of a parking facility and a ($65.4) million loss related to the securities portfolio restructuring. There were no supplemental disclosure items related to income in the third quarter of 2023. Adjusting for these items, noninterest income for the fourth quarter of 2023 totaled $88.2 million, up $2.2 million, or 3%, linked-quarter.

Service charges on deposits were down $0.6 million, or 3%, from the third quarter of 2023. Bank card and ATM fees were up $0.2 million, or 1%, from the third quarter of 2023.

Investment and annuity income and insurance fees were up $2.6 million, or 30%, linked-quarter, related to higher activity. Trust fees were up $0.3 million, or 2% linked-quarter. Fees from secondary mortgage operations totaled $2.1 million for the fourth quarter of 2023, down $0.5 million, or 20%, linked-quarter.

Securities transactions, net was a loss of $65.4 million, relating to the securities portfolio restructuring included as a supplemental disclosure item. There were no gains or losses related to securities transactions in the third quarter of 2023. Other noninterest income was $32.0 million in the fourth quarter, compared to $15.4 million in the third quarter of 2023, impacted by the $16.1 million gain on the sale of a parking facility included as a supplemental disclosure item.

Noninterest Expense & Taxes

Noninterest expense totaled $229.2 million, up $24.5 million, or 12% linked-quarter. Included in the total was $26.1 million of a supplemental disclosure item related to the FDIC special assessment.

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There were no supplemental disclosure items related to expense in the third quarter of 2023. Adjusting for this item, noninterest expense for the fourth quarter of 2023 totaled $203.0 million, down $1.6 million, or 1%, linked-quarter.

Personnel expense totaled $114.3 million in the fourth quarter of 2023, down $1.9 million, or 2%, linked-quarter. The decrease was primarily related to lower incentive expense. Net occupancy and equipment expense totaled $17.5 million in the fourth quarter of 2023, down $0.7 million, or 4%, from the third quarter of 2023. Amortization of intangibles totaled $2.7 million for the fourth quarter of 2023, down $0.1 million, or 5%, linked-quarter.

ORE and other foreclosed assets was a net gain of $0.5 million in the fourth quarter of 2023, compared to a net gain of less than $0.1 million in the third quarter of 2023.

Other expense totaled $95.1 million in the fourth quarter of 2023, up $27.7 million, or 41%, linked-quarter, impacted by the $26.1 million FDIC special assessment included as a supplemental disclosure item.

The effective income tax rate for fourth quarter 2023 was 18.8%.

Capital

Common stockholders’ equity at December 31, 2023 totaled $3.8 billion, up $302.7 million, or 9%, from September 30, 2023. The tangible common equity (TCE) ratio was 8.37%, up 103 bps linked-quarter. The company’s CET1 ratio is estimated to be 12.39% at December 31, 2023, up 33 bps linked-quarter. Total risk-based capital ratio is estimated to be 14.00% at December 31, 2023, up 37 bps linked-quarter. The company’s share buyback authorization (allowing the repurchase of up to 4,297,000 shares of the company’s outstanding common stock), is set to expire on December 31, 2024. No shares were repurchased in the fourth quarter of 2023.

Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 3:30 p.m. Central Time on Tuesday, January 16, 2024 to review fourth quarter 2023 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 fourth quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial 888-210-2654 or 646-960-0278, access code 6914431.

An audio archive of the conference call will be available under the Investor Relations section of our website. A replay of the call will also be available through January 23, 2024 by dialing 800-770-2030 or 647-362-9199, access code 6914431.

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

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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 material 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 total revenue (te) less noninterest expense, excluding supplemental disclosures 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 our Efficiency Ratio as noninterest expense to total net interest income (te) and noninterest income, excluding amortization of purchased intangibles and supplemental disclosure items defined above. Management believes the efficiency ratio is a useful measure as it provides a greater understanding of ongoing operations and enhances comparability with prior periods.

Important Cautionary Statement about Forward-Looking Statements

This presentation 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

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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, general economic business conditions in our local markets, Federal Reserve action with respect to interest rates, the impacts related to Russia’s military action in Ukraine, the effects of the Israel-Hamas war, 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 potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, success of revenue-generating and cost reduction initiatives, 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, the adequacy of our internal controls over financial and non-financial reporting, the financial impact of regulatory requirements and tax reform legislation, the impact of reference rate reform, deposit trends, credit quality trends, the impact of natural or man-made disasters, the impact of current and future economic conditions, including the effects of declines in the real estate market, high unemployment, inflationary pressures, increasing insurance costs, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing, net interest margin trends, future expense levels, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts, accretion levels 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 presentation 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, 2022, Part II, “Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the period ended March 31, 2023, and in other periodic reports that we file with the SEC.

 

 

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HANCOCK WHITNEY CORPORATION

 

FINANCIAL HIGHLIGHTS

 

(Unaudited)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

(dollars and common share data in thousands, except per share amounts)

 

12/31/2023

 

 

9/30/2023

 

 

12/31/2022

 

 

12/31/2023

 

 

12/31/2022

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

269,460

 

 

$

269,234

 

 

$

295,501

 

 

$

1,097,599

 

 

$

1,050,003

 

Net interest income (TE) (a)

 

 

272,294

 

 

 

272,086

 

 

 

298,116

 

 

 

1,108,706

 

 

 

1,060,351

 

Provision for credit losses

 

 

16,952

 

 

 

28,498

 

 

 

2,487

 

 

 

59,103

 

 

 

(28,399

)

Noninterest income

 

 

38,951

 

 

 

85,974

 

 

 

77,064

 

 

 

288,480

 

 

 

331,486

 

Noninterest expense

 

 

229,151

 

 

 

204,675

 

 

 

190,154

 

 

 

836,848

 

 

 

750,692

 

Income tax expense

 

 

11,705

 

 

 

24,297

 

 

 

36,137

 

 

 

97,526

 

 

 

135,107

 

Net income

 

$

50,603

 

 

$

97,738

 

 

$

143,787

 

 

$

392,602

 

 

$

524,089

 

Supplemental disclosure items - included above, pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of parking facility

 

$

16,126

 

 

$

—

 

 

$

—

 

 

$

16,126

 

 

$

—

 

Loss on securities portfolio restructure

 

 

(65,380

)

 

 

—

 

 

 

—

 

 

 

(65,380

)

 

 

—

 

Included in noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

26,123

 

 

 

—

 

 

 

—

 

 

 

26,123

 

 

 

—

 

PERIOD-END BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,921,917

 

 

$

23,983,679

 

 

$

23,114,046

 

 

$

23,921,917

 

 

$

23,114,046

 

Securities

 

 

7,599,974

 

 

 

7,916,101

 

 

 

8,408,536

 

 

 

7,599,974

 

 

 

8,408,536

 

Earning assets

 

 

32,175,097

 

 

 

32,733,591

 

 

 

31,873,027

 

 

 

32,175,097

 

 

 

31,873,027

 

Total assets

 

 

35,578,573

 

 

 

36,298,301

 

 

 

35,183,825

 

 

 

35,578,573

 

 

 

35,183,825

 

Noninterest-bearing deposits

 

 

11,030,515

 

 

 

11,626,371

 

 

 

13,645,113

 

 

 

11,030,515

 

 

 

13,645,113

 

Total deposits

 

 

29,690,059

 

 

 

30,320,337

 

 

 

29,070,349

 

 

 

29,690,059

 

 

 

29,070,349

 

Common stockholders' equity

 

 

3,803,661

 

 

 

3,501,003

 

 

 

3,342,628

 

 

 

3,803,661

 

 

 

3,342,628

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,795,681

 

 

$

23,830,724

 

 

$

22,723,248

 

 

$

23,594,579

 

 

$

21,915,393

 

Securities (b)

 

 

8,579,444

 

 

 

8,888,477

 

 

 

9,200,511

 

 

 

8,901,626

 

 

 

9,013,133

 

Earning assets

 

 

33,128,130

 

 

 

33,137,565

 

 

 

32,244,681

 

 

 

33,160,791

 

 

 

32,498,213

 

Total assets

 

 

35,538,300

 

 

 

35,626,927

 

 

 

34,498,915

 

 

 

35,633,442

 

 

 

35,059,178

 

Noninterest-bearing deposits

 

 

11,132,354

 

 

 

11,453,236

 

 

 

13,854,625

 

 

 

11,919,234

 

 

 

14,298,022

 

Total deposits

 

 

29,974,941

 

 

 

29,757,180

 

 

 

28,816,338

 

 

 

29,478,481

 

 

 

29,497,470

 

Common stockholders' equity

 

 

3,560,978

 

 

 

3,572,487

 

 

 

3,228,667

 

 

 

3,528,911

 

 

 

3,405,206

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted

 

$

0.58

 

 

$

1.12

 

 

$

1.65

 

 

$

4.50

 

 

$

5.98

 

Cash dividends per share

 

 

0.30

 

 

 

0.30

 

 

 

0.27

 

 

 

1.20

 

 

 

1.08

 

Book value per share (period-end)

 

 

44.05

 

 

 

40.64

 

 

 

38.89

 

 

 

44.05

 

 

 

38.89

 

Tangible book value per share (period-end)

 

 

33.63

 

 

 

30.16

 

 

 

28.29

 

 

 

33.63

 

 

 

28.29

 

Weighted average number of shares - diluted

 

 

86,604

 

 

 

86,437

 

 

 

86,249

 

 

 

86,423

 

 

 

86,394

 

Period-end number of shares

 

 

86,345

 

 

 

86,148

 

 

 

85,941

 

 

 

86,345

 

 

 

85,941

 

Market data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High sales price

 

$

49.65

 

 

$

45.15

 

 

$

57.00

 

 

$

54.38

 

 

$

59.82

 

Low sales price

 

 

32.16

 

 

 

35.34

 

 

 

45.64

 

 

 

31.02

 

 

 

41.62

 

Period-end closing price

 

 

48.59

 

 

 

36.99

 

 

 

48.39

 

 

 

48.59

 

 

 

48.39

 

Trading volume

 

 

38,574

 

 

 

34,506

 

 

 

29,996

 

 

 

150,965

 

 

 

111,470

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.56

%

 

 

1.09

%

 

 

1.65

%

 

 

1.10

%

 

 

1.49

%

Return on average common equity

 

 

5.64

%

 

 

10.85

%

 

 

17.67

%

 

 

11.13

%

 

 

15.39

%

Return on average tangible common equity

 

 

7.55

%

 

 

14.53

%

 

 

24.64

%

 

 

14.97

%

 

 

21.07

%

Tangible common equity ratio (c)

 

 

8.37

%

 

 

7.34

%

 

 

7.09

%

 

 

8.37

%

 

 

7.09

%

Net interest margin (TE)

 

 

3.27

%

 

 

3.27

%

 

 

3.68

%

 

 

3.34

%

 

 

3.26

%

Noninterest income as a percentage of total revenue (TE)

 

 

12.51

%

 

 

24.01

%

 

 

20.54

%

 

 

20.65

%

 

 

23.82

%

Efficiency ratio (d)

 

 

55.58

%

 

 

56.38

%

 

 

49.81

%

 

 

55.25

%

 

 

52.93

%

Average loan/deposit ratio

 

 

79.39

%

 

 

80.08

%

 

 

78.86

%

 

 

80.04

%

 

 

74.30

%

Allowance for loan losses as a percentage of period-end loans

 

 

1.29

%

 

 

1.28

%

 

 

1.33

%

 

 

1.29

%

 

 

1.33

%

Allowance for credit losses as a percentage of period-end loans (e)

 

 

1.41

%

 

 

1.40

%

 

 

1.48

%

 

 

1.41

%

 

 

1.48

%

Annualized net charge-offs to average loans

 

 

0.27

%

 

 

0.64

%

 

 

0.02

%

 

 

0.27

%

 

 

0.01

%

Allowance for loan losses as a % of nonaccrual loans

 

 

521.56

%

 

 

507.68

%

 

 

789.38

%

 

 

521.56

%

 

 

789.38

%

FTE headcount

 

 

3,591

 

 

 

3,681

 

 

 

3,627

 

 

 

3,591

 

 

 

3,627

 

(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.

 

 

 

7

 

 

HANCOCK WHITNEY CORPORATION

 

QUARTERLY FINANCIAL HIGHLIGHTS

 

(Unaudited)

 

 

 

Three Months Ended

 

(dollars and common share data in thousands, except per share amounts)

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

 

12/31/2022

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

269,460

 

 

$

269,234

 

 

$

273,911

 

 

$

284,994

 

 

$

295,501

 

Net interest income (TE) (a)

 

 

272,294

 

 

 

272,086

 

 

 

276,748

 

 

 

287,578

 

 

 

298,116

 

Provision for credit losses

 

 

16,952

 

 

 

28,498

 

 

 

7,633

 

 

 

6,020

 

 

 

2,487

 

Noninterest income

 

 

38,951

 

 

 

85,974

 

 

 

83,225

 

 

 

80,330

 

 

 

77,064

 

Noninterest expense

 

 

229,151

 

 

 

204,675

 

 

 

202,138

 

 

 

200,884

 

 

 

190,154

 

Income tax expense

 

 

11,705

 

 

 

24,297

 

 

 

29,571

 

 

 

31,953

 

 

 

36,137

 

Net income

 

$

50,603

 

 

$

97,738

 

 

$

117,794

 

 

$

126,467

 

 

$

143,787

 

Supplemental disclosure items - included above, pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of parking facility

 

$

16,126

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Loss on securities portfolio restructure

 

 

(65,380

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Included in noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

26,123

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

PERIOD-END BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,921,917

 

 

$

23,983,679

 

 

$

23,789,886

 

 

$

23,404,523

 

 

$

23,114,046

 

Securities

 

 

7,599,974

 

 

 

7,916,101

 

 

 

8,195,679

 

 

 

8,390,684

 

 

 

8,408,536

 

Earning assets

 

 

32,175,097

 

 

 

32,733,591

 

 

 

32,715,630

 

 

 

34,106,792

 

 

 

31,873,027

 

Total assets

 

 

35,578,573

 

 

 

36,298,301

 

 

 

36,210,148

 

 

 

37,547,083

 

 

 

35,183,825

 

Noninterest-bearing deposits

 

 

11,030,515

 

 

 

11,626,371

 

 

 

12,171,817

 

 

 

12,860,027

 

 

 

13,645,113

 

Total deposits

 

 

29,690,059

 

 

 

30,320,337

 

 

 

30,043,501

 

 

 

29,613,070

 

 

 

29,070,349

 

Common stockholders' equity

 

 

3,803,661

 

 

 

3,501,003

 

 

 

3,554,476

 

 

 

3,531,232

 

 

 

3,342,628

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,795,681

 

 

$

23,830,724

 

 

$

23,654,994

 

 

$

23,086,529

 

 

$

22,723,248

 

Securities (b)

 

 

8,579,444

 

 

 

8,888,477

 

 

 

9,007,821

 

 

 

9,137,034

 

 

 

9,200,511

 

Earning assets

 

 

33,128,130

 

 

 

33,137,565

 

 

 

33,619,829

 

 

 

32,753,781

 

 

 

32,244,681

 

Total assets

 

 

35,538,300

 

 

 

35,626,927

 

 

 

36,205,396

 

 

 

35,159,050

 

 

 

34,498,915

 

Noninterest-bearing deposits

 

 

11,132,354

 

 

 

11,453,236

 

 

 

12,153,453

 

 

 

12,963,133

 

 

 

13,854,625

 

Total deposits

 

 

29,974,941

 

 

 

29,757,180

 

 

 

29,372,899

 

 

 

28,792,851

 

 

 

28,816,338

 

Common stockholders' equity

 

 

3,560,978

 

 

 

3,572,487

 

 

 

3,567,260

 

 

 

3,412,813

 

 

 

3,228,667

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted

 

$

0.58

 

 

$

1.12

 

 

$

1.35

 

 

$

1.45

 

 

$

1.65

 

Cash dividends per share

 

 

0.30

 

 

 

0.30

 

 

 

0.30

 

 

 

0.30

 

 

 

0.27

 

Book value per share (period-end)

 

 

44.05

 

 

 

40.64

 

 

 

41.27

 

 

 

41.03

 

 

 

38.89

 

Tangible book value per share (period-end)

 

 

33.63

 

 

 

30.16

 

 

 

30.76

 

 

 

30.47

 

 

 

28.29

 

Weighted average number of shares - diluted

 

 

86,604

 

 

 

86,437

 

 

 

86,370

 

 

 

86,282

 

 

 

86,249

 

Period-end number of shares

 

 

86,345

 

 

 

86,148

 

 

 

86,123

 

 

 

86,066

 

 

 

85,941

 

Market data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High sales price

 

$

49.65

 

 

$

45.15

 

 

$

43.73

 

 

$

54.38

 

 

$

57.00

 

Low sales price

 

 

32.16

 

 

 

35.34

 

 

 

31.02

 

 

 

34.42

 

 

 

45.64

 

Period-end closing price

 

 

48.59

 

 

 

36.99

 

 

 

38.38

 

 

 

36.40

 

 

 

48.39

 

Trading volume

 

 

38,574

 

 

 

34,506

 

 

 

38,854

 

 

 

39,030

 

 

 

29,996

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.56

%

 

 

1.09

%

 

 

1.30

%

 

 

1.46

%

 

 

1.65

%

Return on average common equity

 

 

5.64

%

 

 

10.85

%

 

 

13.24

%

 

 

15.03

%

 

 

17.67

%

Return on average tangible common equity

 

 

7.55

%

 

 

14.53

%

 

 

17.76

%

 

 

20.49

%

 

 

24.64

%

Tangible common equity ratio (c)

 

 

8.37

%

 

 

7.34

%

 

 

7.50

%

 

 

7.16

%

 

 

7.09

%

Net interest margin (TE)

 

 

3.27

%

 

 

3.27

%

 

 

3.30

%

 

 

3.55

%

 

 

3.68

%

Noninterest income as a percentage of total revenue (TE)

 

 

12.51

%

 

 

24.01

%

 

 

23.21

%

 

 

21.83

%

 

 

20.54

%

Efficiency ratio (d)

 

 

55.58

%

 

 

56.38

%

 

 

55.33

%

 

 

53.76

%

 

 

49.81

%

Average loan/deposit ratio

 

 

79.39

%

 

 

80.08

%

 

 

80.53

%

 

 

80.18

%

 

 

78.86

%

Allowance for loan losses as a percentage of period-end loans

 

 

1.29

%

 

 

1.28

%

 

 

1.32

%

 

 

1.32

%

 

 

1.33

%

Allowance for credit losses as a percentage of period-end loans (e)

 

 

1.41

%

 

 

1.40

%

 

 

1.45

%

 

 

1.46

%

 

 

1.48

%

Annualized net charge-offs to average loans

 

 

0.27

%

 

 

0.64

%

 

 

0.06

%

 

 

0.10

%

 

 

0.02

%

Allowance for loan losses as a % of nonaccrual loans

 

 

521.56

%

 

 

507.68

%

 

 

402.07

%

 

 

569.31

%

 

 

789.38

%

FTE headcount

 

 

3,591

 

 

 

3,681

 

 

 

3,705

 

 

 

3,679

 

 

 

3,627

 

(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 disclosures noted above.

 

(e) The allowance for credit losses includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.

 

 

 

 

 

 

8

 

 

 

 

 

HANCOCK WHITNEY CORPORATION

 

INCOME STATEMENT

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

(dollars in thousands, except per share data)

 

12/31/2023

 

 

9/30/2023

 

 

12/31/2022

 

 

12/31/2023

 

 

12/31/2022

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

426,794

 

 

$

415,827

 

 

$

345,676

 

 

$

1,620,497

 

 

$

1,137,063

 

Interest income (TE) (f)

 

 

429,628

 

 

 

418,679

 

 

 

348,291

 

 

 

1,631,604

 

 

 

1,147,411

 

Interest expense

 

 

157,334

 

 

 

146,593

 

 

 

50,175

 

 

 

522,898

 

 

 

87,060

 

Net interest income (TE)

 

 

272,294

 

 

 

272,086

 

 

 

298,116

 

 

 

1,108,706

 

 

 

1,060,351

 

Provision for credit losses

 

 

16,952

 

 

 

28,498

 

 

 

2,487

 

 

 

59,103

 

 

 

(28,399

)

Noninterest income

 

 

38,951

 

 

 

85,974

 

 

 

77,064

 

 

 

288,480

 

 

 

331,486

 

Noninterest expense

 

 

229,151

 

 

 

204,675

 

 

 

190,154

 

 

 

836,848

 

 

 

750,692

 

Income before income taxes

 

 

62,308

 

 

 

122,035

 

 

 

179,924

 

 

 

490,128

 

 

 

659,196

 

Income tax expense

 

 

11,705

 

 

 

24,297

 

 

 

36,137

 

 

 

97,526

 

 

 

135,107

 

Net income

 

$

50,603

 

 

$

97,738

 

 

$

143,787

 

 

$

392,602

 

 

$

524,089

 

Supplemental disclosure items - included above, pre-tax

 

 

 

 

 

 

 

 

 

 

Included in noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of parking facility

 

$

16,126

 

 

$

—

 

 

$

—

 

 

$

16,126

 

 

$

—

 

Loss on securities portfolio restructure

 

 

(65,380

)

 

 

—

 

 

 

—

 

 

 

(65,380

)

 

 

—

 

Included in noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

26,123

 

 

 

—

 

 

 

—

 

 

 

26,123

 

 

 

—

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

21,643

 

 

$

22,264

 

 

$

22,222

 

 

$

86,020

 

 

$

87,663

 

Trust fees

 

 

16,845

 

 

 

16,593

 

 

 

16,496

 

 

 

67,565

 

 

 

65,132

 

Bank card and ATM fees

 

 

20,708

 

 

 

20,555

 

 

 

20,913

 

 

 

82,966

 

 

 

84,591

 

Investment and annuity fees and insurance commissions

 

 

11,086

 

 

 

8,520

 

 

 

6,832

 

 

 

36,714

 

 

 

28,752

 

Secondary mortgage market operations

 

 

2,083

 

 

 

2,609

 

 

 

1,504

 

 

 

9,159

 

 

 

11,524

 

Securities transactions, net

 

 

(65,380

)

 

 

—

 

 

 

—

 

 

 

(65,380

)

 

 

(87

)

Other income

 

 

31,966

 

 

 

15,433

 

 

 

9,097

 

 

 

71,436

 

 

 

53,911

 

Total noninterest income

 

$

38,951

 

 

$

85,974

 

 

$

77,064

 

 

$

288,480

 

 

$

331,486

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

$

114,342

 

 

$

116,266

 

 

$

119,147

 

 

$

460,795

 

 

$

460,635

 

Net occupancy and equipment expense

 

 

17,523

 

 

 

18,210

 

 

 

16,927

 

 

 

70,425

 

 

 

67,340

 

Other real estate and foreclosed assets (income) expense, net

 

 

(471

)

 

 

(26

)

 

 

(773

)

 

 

(624

)

 

 

(4,407

)

Other expense

 

 

95,085

 

 

 

67,412

 

 

 

51,582

 

 

 

294,696

 

 

 

213,091

 

Amortization of intangibles

 

 

2,672

 

 

 

2,813

 

 

 

3,271

 

 

 

11,556

 

 

 

14,033

 

Total noninterest expense

 

$

229,151

 

 

$

204,675

 

 

$

190,154

 

 

$

836,848

 

 

$

750,692

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.58

 

 

$

1.12

 

 

$

1.65

 

 

$

4.51

 

 

$

6.00

 

Diluted

 

 

0.58

 

 

 

1.12

 

 

 

1.65

 

 

 

4.50

 

 

 

5.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(f) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.

 

 

9

 

 

HANCOCK WHITNEY CORPORATION

 

INCOME STATEMENT

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(in thousands, except per share data)

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

 

12/31/2022

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

426,794

 

 

$

415,827

 

 

$

405,273

 

 

$

372,603

 

 

$

345,676

 

Interest income (TE) (f)

 

 

429,628

 

 

 

418,679

 

 

 

408,110

 

 

 

375,187

 

 

 

348,291

 

Interest expense

 

 

157,334

 

 

 

146,593

 

 

 

131,362

 

 

 

87,609

 

 

 

50,175

 

Net interest income (TE)

 

 

272,294

 

 

 

272,086

 

 

 

276,748

 

 

 

287,578

 

 

 

298,116

 

Provision for credit losses

 

 

16,952

 

 

 

28,498

 

 

 

7,633

 

 

 

6,020

 

 

 

2,487

 

Noninterest income

 

 

38,951

 

 

 

85,974

 

 

 

83,225

 

 

 

80,330

 

 

 

77,064

 

Noninterest expense

 

 

229,151

 

 

 

204,675

 

 

 

202,138

 

 

 

200,884

 

 

 

190,154

 

Income before income taxes

 

 

62,308

 

 

 

122,035

 

 

 

147,365

 

 

 

158,420

 

 

 

179,924

 

Income tax expense

 

 

11,705

 

 

 

24,297

 

 

 

29,571

 

 

 

31,953

 

 

 

36,137

 

Net income

 

$

50,603

 

 

$

97,738

 

 

$

117,794

 

 

$

126,467

 

 

$

143,787

 

Supplemental disclosure items - included above, pre-tax

 

 

 

 

 

 

 

 

 

 

Included in noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of parking facility

 

$

16,126

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Loss on securities portfolio restructure

 

 

(65,380

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Included in noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

26,123

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

21,643

 

 

$

22,264

 

 

$

21,491

 

 

$

20,622

 

 

$

22,222

 

Trust fees

 

 

16,845

 

 

 

16,593

 

 

 

17,393

 

 

 

16,734

 

 

 

16,496

 

Bank card and ATM fees

 

 

20,708

 

 

 

20,555

 

 

 

20,982

 

 

 

20,721

 

 

 

20,913

 

Investment and annuity fees and insurance commissions

 

 

11,086

 

 

 

8,520

 

 

 

8,241

 

 

 

8,867

 

 

 

6,832

 

Secondary mortgage market operations

 

 

2,083

 

 

 

2,609

 

 

 

2,299

 

 

 

2,168

 

 

 

1,504

 

Securities transactions, net

 

 

(65,380

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other income

 

 

31,966

 

 

 

15,433

 

 

 

12,819

 

 

 

11,218

 

 

 

9,097

 

Total noninterest income

 

$

38,951

 

 

$

85,974

 

 

$

83,225

 

 

$

80,330

 

 

$

77,064

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

$

114,342

 

 

$

116,266

 

 

$

114,864

 

 

$

115,323

 

 

$

119,147

 

Net occupancy and equipment expense

 

 

17,523

 

 

 

18,210

 

 

 

17,750

 

 

 

16,942

 

 

 

16,927

 

Other real estate and foreclosed assets (income) expense, net

 

 

(471

)

 

 

(26

)

 

 

(282

)

 

 

155

 

 

 

(773

)

Other expense

 

 

95,085

 

 

 

67,412

 

 

 

66,849

 

 

 

65,350

 

 

 

51,582

 

Amortization of intangibles

 

 

2,672

 

 

 

2,813

 

 

 

2,957

 

 

 

3,114

 

 

 

3,271

 

Total noninterest expense

 

$

229,151

 

 

$

204,675

 

 

$

202,138

 

 

$

200,884

 

 

$

190,154

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.58

 

 

$

1.12

 

 

$

1.35

 

 

$

1.45

 

 

$

1.65

 

Diluted

 

 

0.58

 

 

 

1.12

 

 

 

1.35

 

 

 

1.45

 

 

 

1.65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(f) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.

 

 

 

 

10

 

 

 

HANCOCK WHITNEY CORPORATION

 

PERIOD-END BALANCE SHEET

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

 

12/31/2022

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

9,957,284

 

 

$

10,075,585

 

 

$

10,113,932

 

 

$

10,013,482

 

 

$

10,146,453

 

Commercial real estate - owner occupied loans

 

 

3,093,763

 

 

 

3,081,327

 

 

 

3,058,829

 

 

 

3,050,748

 

 

 

3,033,058

 

Total commercial and industrial loans

 

 

13,051,047

 

 

 

13,156,912

 

 

 

13,172,761

 

 

 

13,064,230

 

 

 

13,179,511

 

Commercial real estate - income producing loans

 

 

3,986,943

 

 

 

4,027,553

 

 

 

3,762,428

 

 

 

3,758,455

 

 

 

3,560,991

 

Construction and land development loans

 

 

1,551,091

 

 

 

1,614,846

 

 

 

1,768,252

 

 

 

1,726,916

 

 

 

1,703,592

 

Residential mortgage loans

 

 

3,886,072

 

 

 

3,721,106

 

 

 

3,581,514

 

 

 

3,329,793

 

 

 

3,092,605

 

Consumer loans

 

 

1,446,764

 

 

 

1,463,262

 

 

 

1,504,931

 

 

 

1,525,129

 

 

 

1,577,347

 

Total loans

 

 

23,921,917

 

 

 

23,983,679

 

 

 

23,789,886

 

 

 

23,404,523

 

 

 

23,114,046

 

Loans held for sale

 

 

26,124

 

 

 

15,862

 

 

 

55,902

 

 

 

23,436

 

 

 

26,385

 

Securities

 

 

7,599,974

 

 

 

7,916,101

 

 

 

8,195,679

 

 

 

8,390,684

 

 

 

8,408,536

 

Short-term investments

 

 

627,082

 

 

 

817,949

 

 

 

674,163

 

 

 

2,288,149

 

 

 

324,060

 

Earning assets

 

 

32,175,097

 

 

 

32,733,591

 

 

 

32,715,630

 

 

 

34,106,792

 

 

 

31,873,027

 

Allowance for loan losses

 

 

(307,907

)

 

 

(306,291

)

 

 

(314,496

)

 

 

(309,385

)

 

 

(307,789

)

Goodwill and other intangible assets

 

 

900,090

 

 

 

902,762

 

 

 

905,575

 

 

 

908,533

 

 

 

911,646

 

Other assets

 

 

2,811,293

 

 

 

2,968,239

 

 

 

2,903,439

 

 

 

2,841,143

 

 

 

2,706,941

 

Total assets

 

$

35,578,573

 

 

$

36,298,301

 

 

$

36,210,148

 

 

$

37,547,083

 

 

$

35,183,825

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

11,030,515

 

 

$

11,626,371

 

 

$

12,171,817

 

 

$

12,860,027

 

 

$

13,645,113

 

Interest-bearing transaction and savings deposits

 

 

10,659,970

 

 

 

10,668,241

 

 

 

10,438,820

 

 

 

10,660,420

 

 

 

10,726,686

 

Interest-bearing public fund deposits

 

 

3,143,015

 

 

 

2,853,236

 

 

 

2,925,432

 

 

 

3,086,209

 

 

 

3,244,225

 

Time deposits

 

 

4,856,559

 

 

 

5,172,489

 

 

 

4,507,432

 

 

 

3,006,414

 

 

 

1,454,325

 

Total interest-bearing deposits

 

 

18,659,544

 

 

 

18,693,966

 

 

 

17,871,684

 

 

 

16,753,043

 

 

 

15,425,236

 

Total deposits

 

 

29,690,059

 

 

 

30,320,337

 

 

 

30,043,501

 

 

 

29,613,070

 

 

 

29,070,349

 

Short-term borrowings

 

 

1,154,829

 

 

 

1,425,928

 

 

 

1,629,538

 

 

 

3,519,497

 

 

 

1,871,271

 

Long-term debt

 

 

236,317

 

 

 

236,279

 

 

 

236,241

 

 

 

242,115

 

 

 

242,077

 

Other liabilities

 

 

693,707

 

 

 

814,754

 

 

 

746,392

 

 

 

641,169

 

 

 

657,500

 

Total liabilities

 

 

31,774,912

 

 

 

32,797,298

 

 

 

32,655,672

 

 

 

34,015,851

 

 

 

31,841,197

 

COMMON STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock net of treasury and capital surplus

 

 

2,049,184

 

 

 

2,044,611

 

 

 

2,037,258

 

 

 

2,030,136

 

 

 

2,026,397

 

Retained earnings

 

 

2,375,604

 

 

 

2,351,386

 

 

 

2,280,004

 

 

 

2,188,561

 

 

 

2,088,413

 

Accumulated other comprehensive (loss)

 

 

(621,127

)

 

 

(894,994

)

 

 

(762,786

)

 

 

(687,465

)

 

 

(772,182

)

Total common stockholders' equity

 

 

3,803,661

 

 

 

3,501,003

 

 

 

3,554,476

 

 

 

3,531,232

 

 

 

3,342,628

 

Total liabilities & stockholders' equity

 

$

35,578,573

 

 

$

36,298,301

 

 

$

36,210,148

 

 

$

37,547,083

 

 

$

35,183,825

 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

2,903,571

 

 

$

2,598,241

 

 

$

2,648,901

 

 

$

2,622,699

 

 

$

2,430,982

 

Tier 1 capital (g)

 

 

3,584,289

 

 

 

3,552,824

 

 

 

3,471,066

 

 

 

3,369,351

 

 

 

3,279,419

 

Common equity as a percentage of total assets

 

 

10.69

%

 

 

9.65

%

 

 

9.82

%

 

 

9.40

%

 

 

9.50

%

Tangible common equity ratio

 

 

8.37

%

 

 

7.34

%

 

 

7.50

%

 

 

7.16

%

 

 

7.09

%

Leverage (Tier 1) ratio (g)

 

 

10.10

%

 

 

10.01

%

 

 

9.64

%

 

 

9.63

%

 

 

9.53

%

Common equity tier 1 (CET1) ratio (g)

 

 

12.39

%

 

 

12.06

%

 

 

11.83

%

 

 

11.60

%

 

 

11.41

%

Tier 1 risk-based capital ratio (g)

 

 

12.39

%

 

 

12.06

%

 

 

11.83

%

 

 

11.60

%

 

 

11.41

%

Total risk-based capital ratio (g)

 

 

14.00

%

 

 

13.63

%

 

 

13.44

%

 

 

13.21

%

 

 

12.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(g) Estimated for most recent period-end. Regulatory capital ratios reflect the election to use the five-year transition rules for the adoption of ASC 326, commonly referred to as Current Expected Credit Loss, or CECL.

 

 

 

 

11

 

 

HANCOCK WHITNEY CORPORATION

 

AVERAGE BALANCE SHEET

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

(in thousands)

 

12/31/2023

 

 

9/30/2023

 

 

12/31/2022

 

 

12/31/2023

 

 

12/31/2022

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

9,880,704

 

 

$

10,057,941

 

 

$

9,932,218

 

 

$

9,958,680

 

 

$

9,722,977

 

Commercial real estate - owner occupied loans

 

 

3,087,301

 

 

 

3,060,659

 

 

 

3,037,534

 

 

 

3,073,050

 

 

 

2,953,991

 

Total commercial and industrial loans

 

 

12,968,005

 

 

 

13,118,600

 

 

 

12,969,752

 

 

 

13,031,730

 

 

 

12,676,968

 

Commercial real estate - income producing loans

 

 

3,965,280

 

 

 

3,822,711

 

 

 

3,590,060

 

 

 

3,809,437

 

 

 

3,582,370

 

Construction and land development loans

 

 

1,615,599

 

 

 

1,737,658

 

 

 

1,618,684

 

 

 

1,715,008

 

 

 

1,422,994

 

Residential mortgage loans

 

 

3,803,702

 

 

 

3,669,922

 

 

 

2,968,876

 

 

 

3,541,245

 

 

 

2,666,134

 

Consumer loans

 

 

1,443,095

 

 

 

1,481,833

 

 

 

1,575,876

 

 

 

1,497,159

 

 

 

1,566,927

 

Total loans

 

 

23,795,681

 

 

 

23,830,724

 

 

 

22,723,248

 

 

 

23,594,579

 

 

 

21,915,393

 

Loans held for sale

 

 

12,347

 

 

 

43,390

 

 

 

24,825

 

 

 

25,972

 

 

 

42,973

 

Securities (h)

 

 

8,579,444

 

 

 

8,888,477

 

 

 

9,200,511

 

 

 

8,901,626

 

 

 

9,013,133

 

Short-term investments

 

 

740,658

 

 

 

374,974

 

 

 

296,097

 

 

 

638,614

 

 

 

1,526,714

 

Earning assets

 

 

33,128,130

 

 

 

33,137,565

 

 

 

32,244,681

 

 

 

33,160,791

 

 

 

32,498,213

 

Allowance for loan losses

 

 

(307,434

)

 

 

(315,371

)

 

 

(307,403

)

 

 

(310,910

)

 

 

(317,402

)

Goodwill and other intangible assets

 

 

901,377

 

 

 

904,127

 

 

 

913,223

 

 

 

905,610

 

 

 

918,376

 

Other assets

 

 

1,816,227

 

 

 

1,900,606

 

 

 

1,648,414

 

 

 

1,877,951

 

 

 

1,959,991

 

Total assets

 

$

35,538,300

 

 

$

35,626,927

 

 

$

34,498,915

 

 

$

35,633,442

 

 

$

35,059,178

 

LIABILITIES AND COMMON STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

11,132,354

 

 

$

11,453,236

 

 

$

13,854,625

 

 

$

11,919,234

 

 

$

14,298,022

 

Interest-bearing transaction and savings deposits

 

 

10,681,936

 

 

 

10,583,224

 

 

 

10,810,751

 

 

 

10,598,553

 

 

 

11,201,094

 

Interest-bearing public fund deposits

 

 

2,896,317

 

 

 

2,851,965

 

 

 

2,972,985

 

 

 

2,971,603

 

 

 

2,941,876

 

Time deposits

 

 

5,264,334

 

 

 

4,868,755

 

 

 

1,177,977

 

 

 

3,989,091

 

 

 

1,056,478

 

Total interest-bearing deposits

 

 

18,842,587

 

 

 

18,303,944

 

 

 

14,961,713

 

 

 

17,559,247

 

 

 

15,199,448

 

Total deposits

 

 

29,974,941

 

 

 

29,757,180

 

 

 

28,816,338

 

 

 

29,478,481

 

 

 

29,497,470

 

Short-term borrowings

 

 

993,810

 

 

 

1,311,049

 

 

 

1,575,826

 

 

 

1,693,433

 

 

 

1,358,687

 

Long-term debt

 

 

236,298

 

 

 

236,260

 

 

 

236,674

 

 

 

239,141

 

 

 

239,282

 

Other liabilities

 

 

772,273

 

 

 

749,951

 

 

 

641,410

 

 

 

693,476

 

 

 

558,533

 

Common stockholders' equity

 

 

3,560,978

 

 

 

3,572,487

 

 

 

3,228,667

 

 

 

3,528,911

 

 

 

3,405,206

 

Total liabilities & stockholders' equity

 

$

35,538,300

 

 

$

35,626,927

 

 

$

34,498,915

 

 

$

35,633,442

 

 

$

35,059,178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(h) Average securities does not include unrealized holding gains/losses on available for sale securities.

 

 

 

 

12

 

 

 

HANCOCK WHITNEY CORPORATION

 

AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

12/31/2023

 

 

9/30/2023

 

 

12/31/2022

 

(dollars in millions)

 

Average
 Balance

 

 

Interest

 

 

Rate

 

 

Average
  Balance

 

 

Interest

 

 

Rate

 

 

Average
 Balance

 

 

Interest

 

 

Rate

 

AVERAGE EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans (TE) (i)

 

$

18,548.9

 

 

$

297.6

 

 

 

6.37

%

 

$

18,679.0

 

 

$

294.1

 

 

 

6.25

%

 

$

18,178.5

 

 

$

240.6

 

 

 

5.25

%

Residential mortgage loans

 

 

3,803.7

 

 

 

35.2

 

 

 

3.70

%

 

 

3,669.9

 

 

 

33.7

 

 

 

3.67

%

 

 

2,968.9

 

 

 

25.6

 

 

 

3.45

%

Consumer loans

 

 

1,443.1

 

 

 

31.9

 

 

 

8.79

%

 

 

1,481.8

 

 

 

32.2

 

 

 

8.61

%

 

 

1,575.9

 

 

 

27.2

 

 

 

6.86

%

Loan fees & late charges

 

 

—

 

 

 

1.4

 

 

 

0.00

%

 

 

—

 

 

 

0.3

 

 

 

0.00

%

 

 

—

 

 

 

(0.2

)

 

 

0.00

%

Total loans (TE) (j) (k)

 

 

23,795.7

 

 

 

366.1

 

 

 

6.11

%

 

 

23,830.7

 

 

 

360.3

 

 

 

6.01

%

 

 

22,723.3

 

 

 

293.2

 

 

 

5.12

%

Loans held for sale

 

 

12.3

 

 

 

0.3

 

 

 

8.52

%

 

 

43.4

 

 

 

0.8

 

 

 

7.30

%

 

 

24.8

 

 

 

0.3

 

 

 

4.53

%

US Treasury and government agency securities

 

 

654.1

 

 

 

5.2

 

 

 

3.18

%

 

 

535.3

 

 

 

3.4

 

 

 

2.52

%

 

 

500.3

 

 

 

2.9

 

 

 

2.32

%

CMOs and mortgage backed securities

 

 

7,031.9

 

 

 

41.2

 

 

 

2.34

%

 

 

7,450.5

 

 

 

42.7

 

 

 

2.29

%

 

 

7,769.1

 

 

 

42.8

 

 

 

2.20

%

Municipals (TE)

 

 

870.0

 

 

 

6.5

 

 

 

2.97

%

 

 

879.2

 

 

 

6.5

 

 

 

2.98

%

 

 

907.5

 

 

 

6.8

 

 

 

2.97

%

Other securities

 

 

23.4

 

 

 

0.2

 

 

 

3.51

%

 

 

23.5

 

 

 

0.2

 

 

 

3.51

%

 

 

23.6

 

 

 

0.2

 

 

 

3.50

%

Total securities (TE) (l)

 

 

8,579.4

 

 

 

53.1

 

 

 

2.47

%

 

 

8,888.5

 

 

 

52.8

 

 

 

2.37

%

 

 

9,200.5

 

 

 

52.7

 

 

 

2.29

%

Total short-term investments

 

 

740.7

 

 

 

10.1

 

 

 

5.43

%

 

 

375.0

 

 

 

4.8

 

 

 

5.08

%

 

 

296.1

 

 

 

2.1

 

 

 

2.88

%

Average earning assets yield (TE)

 

$

33,128.1

 

 

$

429.6

 

 

 

5.16

%

 

$

33,137.6

 

 

$

418.7

 

 

 

5.02

%

 

$

32,244.7

 

 

$

348.3

 

 

 

4.29

%

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction and savings deposits

 

$

10,681.9

 

 

$

56.9

 

 

 

2.11

%

 

$

10,583.2

 

 

$

51.4

 

 

 

1.93

%

 

$

10,810.7

 

 

$

14.6

 

 

 

0.53

%

Time deposits

 

 

5,264.3

 

 

 

62.4

 

 

 

4.71

%

 

 

4,868.7

 

 

 

53.8

 

 

 

4.38

%

 

 

1,178.0

 

 

 

3.2

 

 

 

1.09

%

Public funds

 

 

2,896.3

 

 

 

26.8

 

 

 

3.68

%

 

 

2,852.0

 

 

 

25.6

 

 

 

3.57

%

 

 

2,973.0

 

 

 

18.2

 

 

 

2.43

%

Total interest-bearing deposits

 

 

18,842.5

 

 

 

146.1

 

 

 

3.08

%

 

 

18,303.9

 

 

 

130.8

 

 

 

2.84

%

 

 

14,961.7

 

 

 

36.0

 

 

 

0.96

%

Short-term borrowings

 

 

993.8

 

 

 

8.1

 

 

 

3.24

%

 

 

1,311.0

 

 

 

12.7

 

 

 

3.85

%

 

 

1,575.8

 

 

 

11.1

 

 

 

2.79

%

Long-term debt

 

 

236.3

 

 

 

3.1

 

 

 

5.19

%

 

 

236.3

 

 

 

3.1

 

 

 

5.19

%

 

 

236.7

 

 

 

3.1

 

 

 

5.21

%

Total borrowings

 

 

1,230.1

 

 

 

11.2

 

 

 

3.62

%

 

 

1,547.3

 

 

 

15.8

 

 

 

4.06

%

 

 

1,812.5

 

 

 

14.2

 

 

 

3.10

%

Total interest-bearing liabilities cost

 

 

20,072.6

 

 

 

157.3

 

 

 

3.11

%

 

 

19,851.2

 

 

 

146.6

 

 

 

2.93

%

 

 

16,774.2

 

 

 

50.2

 

 

 

1.19

%

Net interest-free funding sources

 

 

13,055.5

 

 

 

 

 

 

 

 

 

13,286.4

 

 

 

 

 

 

 

 

 

15,470.5

 

 

 

 

 

 

 

Total cost of funds

 

 

33,128.1

 

 

 

157.3

 

 

 

1.88

%

 

 

33,137.6

 

 

 

146.6

 

 

 

1.76

%

 

 

32,244.7

 

 

 

50.2

 

 

 

0.62

%

Net Interest Spread (TE)

 

 

 

 

$

272.3

 

 

 

2.05

%

 

 

 

 

$

272.1

 

 

 

2.09

%

 

 

 

 

$

298.1

 

 

 

3.11

%

Net Interest Margin (TE)

 

$

33,128.1

 

 

$

272.3

 

 

 

3.27

%

 

$

33,137.6

 

 

$

272.1

 

 

 

3.27

%

 

$

32,244.7

 

 

$

298.1

 

 

 

3.68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(i) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.

 

(j) Includes nonaccrual loans.

 

(k) Included in interest income is net purchase accounting accretion of $0.4 million, $0.6 million and $0.8 million for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively.

 

(l) Average securities does not include unrealized holding gains/losses on available for sale securities.

 

 

13

 

 

HANCOCK WHITNEY CORPORATION

 

AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

 

12/31/2023

 

 

12/31/2022

 

(dollars in millions)

 

Average
 Balance

 

 

Interest

 

 

Rate

 

 

Average
 Balance

 

 

Interest

 

 

Rate

 

AVERAGE EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans (TE) (i)

 

$

18,556.2

 

 

$

1,131.8

 

 

 

6.10

%

 

$

17,682.3

 

 

$

759.9

 

 

 

4.30

%

Residential mortgage loans

 

 

3,541.2

 

 

 

128.3

 

 

 

3.62

%

 

 

2,666.1

 

 

 

90.3

 

 

 

3.39

%

Consumer loans

 

 

1,497.2

 

 

 

124.0

 

 

 

8.28

%

 

 

1,567.0

 

 

 

88.4

 

 

 

5.64

%

Loan fees & late charges

 

 

—

 

 

 

1.3

 

 

 

0.00

%

 

 

—

 

 

 

7.4

 

 

 

0.00

%

Total loans (TE) (j) (k)

 

 

23,594.6

 

 

 

1,385.4

 

 

 

5.87

%

 

 

21,915.4

 

 

 

946.0

 

 

 

4.32

%

Loans held for sale

 

 

26.0

 

 

 

1.7

 

 

 

6.63

%

 

 

43.0

 

 

 

1.8

 

 

 

4.22

%

US Treasury and government agency securities

 

 

567.2

 

 

 

15.3

 

 

 

2.70

%

 

 

426.7

 

 

 

8.3

 

 

 

1.95

%

CMOs and mortgage backed securities

 

 

7,423.9

 

 

 

170.4

 

 

 

2.30

%

 

 

7,652.1

 

 

 

154.5

 

 

 

2.02

%

Municipals (TE)

 

 

887.0

 

 

 

26.5

 

 

 

2.98

%

 

 

912.0

 

 

 

27.0

 

 

 

2.96

%

Other securities

 

 

23.5

 

 

 

0.8

 

 

 

3.51

%

 

 

22.3

 

 

 

0.8

 

 

 

3.42

%

Total securities (TE) (l)

 

 

8,901.6

 

 

 

213.0

 

 

 

2.39

%

 

 

9,013.1

 

 

 

190.6

 

 

 

2.11

%

Total short-term investments

 

 

638.6

 

 

 

31.5

 

 

 

4.93

%

 

 

1,526.7

 

 

 

9.0

 

 

 

0.59

%

Average earning assets yield (TE)

 

$

33,160.8

 

 

$

1,631.6

 

 

 

4.92

%

 

$

32,498.2

 

 

$

1,147.4

 

 

 

3.53

%

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction and savings deposits

 

$

10,598.6

 

 

$

176.9

 

 

 

1.67

%

 

$

11,201.1

 

 

$

21.2

 

 

 

0.19

%

Time deposits

 

 

3,989.1

 

 

 

166.5

 

 

 

4.17

%

 

 

1,056.4

 

 

 

4.7

 

 

 

0.44

%

Public funds

 

 

2,971.6

 

 

 

100.5

 

 

 

3.38

%

 

 

2,941.9

 

 

 

32.5

 

 

 

1.10

%

Total interest-bearing deposits

 

 

17,559.3

 

 

 

443.9

 

 

 

2.53

%

 

 

15,199.4

 

 

 

58.4

 

 

 

0.38

%

Short-term borrowings

 

 

1,693.4

 

 

 

66.7

 

 

 

3.94

%

 

 

1,358.7

 

 

 

16.2

 

 

 

1.19

%

Long-term debt

 

 

239.1

 

 

 

12.3

 

 

 

5.15

%

 

 

239.3

 

 

 

12.4

 

 

 

5.19

%

Total borrowings

 

 

1,932.5

 

 

 

79.0

 

 

 

4.09

%

 

 

1,598.0

 

 

 

28.6

 

 

 

1.79

%

Total interest-bearing liabilities cost

 

 

19,491.8

 

 

 

522.9

 

 

 

2.68

%

 

 

16,797.4

 

 

 

87.0

 

 

 

0.52

%

Net interest-free funding sources

 

 

13,669.0

 

 

 

 

 

 

 

 

 

15,700.8

 

 

 

 

 

 

 

Total cost of funds

 

 

33,160.8

 

 

 

522.9

 

 

 

1.58

%

 

 

32,498.2

 

 

 

87.0

 

 

 

0.27

%

Net Interest Spread (TE)

 

 

 

 

$

1,108.7

 

 

 

2.24

%

 

 

 

 

$

1,060.4

 

 

 

3.01

%

Net Interest Margin (TE)

 

$

33,160.8

 

 

$

1,108.7

 

 

 

3.34

%

 

$

32,498.2

 

 

$

1,060.4

 

 

 

3.26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(i) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.

 

(j) Includes nonaccrual loans.

 

(k) Included in interest income is net purchase accounting accretion of $2.4 million and $4.7 million for the twelve months ended December 31, 2023 and 2022, respectively.

 

(l) Average securities does not include unrealized holding gains/losses on available for sale securities.

 

 

 

14

 

 

 

HANCOCK WHITNEY CORPORATION

 

ASSET QUALITY INFORMATION

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

(dollars in thousands)

 

12/31/2023

 

 

9/30/2023

 

 

12/31/2022

 

 

12/31/2023

 

 

12/31/2022

 

Nonaccrual loans (m)

 

$

59,036

 

 

$

60,331

 

 

$

38,991

 

 

$

59,036

 

 

$

38,991

 

ORE and foreclosed assets

 

 

3,628

 

 

 

4,527

 

 

 

2,017

 

 

 

3,628

 

 

 

2,017

 

Total nonaccrual loans + ORE and foreclosed assets

 

$

62,664

 

 

$

64,858

 

 

$

41,008

 

 

$

62,664

 

 

$

41,008

 

Nonaccrual loans as a percentage of loans

 

 

0.25

%

 

 

0.25

%

 

 

0.17

%

 

 

0.25

%

 

 

0.17

%

Nonaccrual loans + ORE and foreclosed assets as a % of loans, ORE and foreclosed assets

 

 

0.26

%

 

 

0.27

%

 

 

0.18

%

 

 

0.26

%

 

 

0.18

%

Accruing loans 90 days past due

 

$

9,609

 

 

$

24,170

 

 

$

4,585

 

 

$

9,609

 

 

$

4,585

 

Accruing loans 90 days past due as a percentage of loans

 

 

0.04

%

 

 

0.10

%

 

 

0.02

%

 

 

0.04

%

 

 

0.02

%

Modified/restructured loans - still accruing (n)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Modified loans - still accruing

 

$

24,448

 

 

$

28,849

 

 

 

 

 

$

24,448

 

 

 

 

Modified loans - still accruing as a % of loans

 

 

0.10

%

 

 

0.12

%

 

 

 

 

 

0.10

%

 

 

 

Restructured loans - still accruing

 

 

 

 

 

 

 

$

1,907

 

 

 

 

 

$

1,907

 

Restructured loans - still accruing as a % of loans

 

 

 

 

 

 

 

 

0.01

%

 

 

 

 

 

0.01

%

PROVISION AND ALLOWANCE FOR CREDIT LOSSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

306,291

 

 

$

314,496

 

 

$

306,116

 

 

$

307,789

 

 

$

342,065

 

Provision for loan losses

 

 

17,671

 

 

 

30,045

 

 

 

2,646

 

 

 

63,518

 

 

 

(32,374

)

Charge-offs

 

 

(19,601

)

 

 

(41,234

)

 

 

(4,643

)

 

 

(75,423

)

 

 

(22,590

)

Recoveries

 

 

3,546

 

 

 

2,984

 

 

 

3,670

 

 

 

12,023

 

 

 

20,688

 

Net charge-offs

 

 

(16,055

)

 

 

(38,250

)

 

 

(973

)

 

 

(63,400

)

 

 

(1,902

)

Ending Balance

 

$

307,907

 

 

$

306,291

 

 

$

307,789

 

 

$

307,907

 

 

$

307,789

 

Reserve for Unfunded Lending Commitments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

29,613

 

 

$

31,160

 

 

$

33,468

 

 

$

33,309

 

 

$

29,334

 

Provision for losses on unfunded lending commitments

 

 

(719

)

 

 

(1,547

)

 

 

(159

)

 

 

(4,415

)

 

 

3,975

 

Ending balance

 

$

28,894

 

 

$

29,613

 

 

$

33,309

 

 

$

28,894

 

 

$

33,309

 

Total Allowance for Credit Losses

 

$

336,801

 

 

$

335,904

 

 

$

341,098

 

 

$

336,801

 

 

$

341,098

 

Total Provision for Credit Losses

 

$

16,952

 

 

$

28,498

 

 

$

2,487

 

 

$

59,103

 

 

$

(28,399

)

Allowance for loan losses as a percentage of period-end loans

 

 

1.29

%

 

 

1.28

%

 

 

1.33

%

 

 

1.29

%

 

 

1.33

%

Allowance for credit losses as a percentage of period-end loans

 

 

1.41

%

 

 

1.40

%

 

 

1.48

%

 

 

1.41

%

 

 

1.48

%

Allowance for loan losses as a % of nonaccrual loans

 

 

521.56

%

 

 

507.68

%

 

 

789.38

%

 

 

521.56

%

 

 

789.38

%

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

12,747

 

 

$

35,506

 

 

$

(1,201

)

 

$

52,841

 

 

$

(3,896

)

Residential mortgage loans

 

 

(388

)

 

 

(383

)

 

 

(251

)

 

 

(1,223

)

 

 

(1,612

)

Consumer loans

 

 

3,696

 

 

 

3,127

 

 

 

2,425

 

 

 

11,782

 

 

 

7,410

 

Total net charge-offs

 

$

16,055

 

 

$

38,250

 

 

$

973

 

 

$

63,400

 

 

$

1,902

 

Net charge-offs (recoveries) as a percentage of average loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

0.27

%

 

 

0.75

%

 

 

(0.03

)%

 

 

0.28

%

 

 

(0.02

)%

Residential mortgage loans

 

 

(0.04

)%

 

 

(0.04

)%

 

 

(0.03

)%

 

 

(0.03

)%

 

 

(0.06

)%

Consumer loans

 

 

1.02

%

 

 

0.84

%

 

 

0.61

%

 

 

0.79

%

 

 

0.47

%

Total net charge-offs as a percentage of average loans

 

 

0.27

%

 

 

0.64

%

 

 

0.02

%

 

 

0.27

%

 

 

0.01

%

(m) Included in nonaccrual loans are nonaccruing modified loans to borrowers experiencing financial difficulties totaling less than $0.1 million at both December 31, 2023 and September 30, 2023, and troubled debt restructured loans totaling $2.6 million at December 31, 2022. The definition of reportable modifications/restructured loans changed for modifications made after January 1, 2023 with the adoption of ASU 2022-02. Refer to Note 1 of the September 30, 2023 Report on Form 10-Q for a discussion of this standard.

(n) Reflects the balance outstanding at December 31, 2023 and September 30, 2023 of accruing modified loans to borrowers experiencing financial difficulty since adoption of ASU 2022-02. Refer to Note 1 of the September 30, 2023 Report on Form 10Q for a discussion of this standard. December 31, 2022 reflects the outstanding balance of accruing troubled debt restructures as defined by superseded accounting guidance of ASC 310-40. Accruing loans are those where we expect to collect all amounts contractually due.

 

 

15

 

 

HANCOCK WHITNEY CORPORATION

 

ASSET QUALITY INFORMATION

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(dollars in thousands)

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

 

12/31/2022

 

Nonaccrual loans (m)

 

$

59,036

 

 

$

60,331

 

 

$

78,220

 

 

$

54,344

 

 

$

38,991

 

ORE and foreclosed assets

 

 

3,628

 

 

 

4,527

 

 

 

2,174

 

 

 

1,976

 

 

 

2,017

 

Total nonaccrual loans + ORE and foreclosed assets

 

$

62,664

 

 

$

64,858

 

 

$

80,394

 

 

$

56,320

 

 

$

41,008

 

Nonaccrual loans as a percentage of loans

 

 

0.25

%

 

 

0.25

%

 

 

0.33

%

 

 

0.23

%

 

 

0.17

%

Nonaccrual loans + ORE and foreclosed assets as a % of loans, ORE and foreclosed assets

 

 

0.26

%

 

 

0.27

%

 

 

0.34

%

 

 

0.24

%

 

 

0.18

%

Accruing loans 90 days past due

 

$

9,609

 

 

$

24,170

 

 

$

7,552

 

 

$

13,155

 

 

$

4,585

 

Accruing loans 90 days past due as a percentage of loans

 

 

0.04

%

 

 

0.10

%

 

 

0.03

%

 

 

0.06

%

 

 

0.02

%

Modified/restructured loans - still accruing (n)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Modified loans - still accruing

 

$

24,448

 

 

$

28,849

 

 

$

1,010

 

 

$

10

 

 

 

 

Modified loans - still accruing as a % of loans

 

 

0.10

%

 

 

0.12

%

 

 

0.00

%

 

 

0.00

%

 

 

 

Restructured loans - still accruing

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,907

 

Restructured loans - still accruing as a % of loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.01

%

PROVISION AND ALLOWANCE FOR CREDIT LOSSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

307,907

 

 

$

306,291

 

 

$

314,496

 

 

$

309,385

 

 

$

307,789

 

Reserve for unfunded lending commitments

 

 

28,894

 

 

 

29,613

 

 

 

31,160

 

 

 

32,014

 

 

 

33,309

 

Total allowance for credit losses

 

$

336,801

 

 

$

335,904

 

 

$

345,656

 

 

$

341,399

 

 

$

341,098

 

Total provision for credit losses

 

$

16,952

 

 

$

28,498

 

 

$

7,633

 

 

$

6,020

 

 

$

2,487

 

Allowance for loan losses as a percentage of period-end loans

 

 

1.29

%

 

 

1.28

%

 

 

1.32

%

 

 

1.32

%

 

 

1.33

%

Allowance for credit losses as a percentage of period-end loans

 

 

1.41

%

 

 

1.40

%

 

 

1.45

%

 

 

1.46

%

 

 

1.48

%

Allowance for loan losses as a % of nonaccrual loans

 

 

521.56

%

 

 

507.68

%

 

 

402.07

%

 

 

569.31

%

 

 

789.38

%

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

12,747

 

 

$

35,506

 

 

$

1,233

 

 

$

3,355

 

 

$

(1,201

)

Residential mortgage loans

 

 

(388

)

 

 

(383

)

 

 

(291

)

 

 

(161

)

 

 

(251

)

Consumer loans

 

 

3,696

 

 

 

3,127

 

 

 

2,434

 

 

 

2,525

 

 

 

2,425

 

Total net charge-offs

 

$

16,055

 

 

$

38,250

 

 

$

3,376

 

 

$

5,719

 

 

$

973

 

Net charge-offs (recoveries) as a percentage of average loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

0.27

%

 

 

0.75

%

 

 

0.03

%

 

 

0.07

%

 

 

(0.03

)%

Residential mortgage loans

 

 

(0.04

)%

 

 

(0.04

)%

 

 

(0.03

)%

 

 

(0.02

)%

 

 

(0.03

)%

Consumer loans

 

 

1.02

%

 

 

0.84

%

 

 

0.64

%

 

 

0.66

%

 

 

0.61

%

Total net charge-offs as a percentage of average loans:

 

 

0.27

%

 

 

0.64

%

 

 

0.06

%

 

 

0.10

%

 

 

0.02

%

AVERAGE LOANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

18,548,884

 

 

$

18,678,969

 

 

$

18,670,814

 

 

$

18,322,189

 

 

$

18,178,496

 

Residential mortgage loans

 

 

3,803,702

 

 

 

3,669,922

 

 

 

3,469,030

 

 

 

3,214,439

 

 

 

2,968,876

 

Consumer loans

 

 

1,443,095

 

 

 

1,481,833

 

 

 

1,515,150

 

 

 

1,549,901

 

 

 

1,575,876

 

Total average loans

 

$

23,795,681

 

 

$

23,830,724

 

 

$

23,654,994

 

 

$

23,086,529

 

 

$

22,723,248

 

(m) Included in nonaccrual loans are nonaccruing modified loans to borrowers experiencing financial difficulties totaling less than $0.1 million at both December 31, 2023 and September 30, 2023, $1.6 million at June 30, 2023 and March 31, 2023 and troubled debt restructured loans totaling $2.6 million at December 31, 2022. The definition of reportable modifications/restructured loans changed for modifications made after January 1, 2023 with the adoption of ASU 2022-02. Refer to Note 1 of the September 30, 2023 Report on Form 10-Q for a discussion of this standard.

(n) Reflects the balance outstanding at December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023 of accruing modified loans to borrowers experiencing financial difficulty since adoption of ASU 2022-02. Refer to Note 1 of the September 30, 2023 Report on Form 10-Q for a discussion of this standard. December 31, 2022 reflects the outstanding balance of accruing troubled debt restructures as defined by superseded accounting guidance of ASC 310-40. Accruing loans are those where we expect to collect all amounts contractually due.

 

 

16

 

 

HANCOCK WHITNEY CORPORATION

 

Appendix A to the Earnings Release

 

Reconciliation of Non-GAAP Measure

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRE-PROVISION NET REVENUE (TE) AND ADJUSTED PRE-PROVISION NET REVENUE (TE)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

(in thousands)

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

 

12/31/2022

 

 

12/31/2023

 

 

12/31/2022

 

Net Income (GAAP)

 

$

50,603

 

 

$

97,738

 

 

$

117,794

 

 

$

126,467

 

 

$

143,787

 

 

$

392,602

 

 

$

524,089

 

Provision for credit losses

 

 

16,952

 

 

 

28,498

 

 

 

7,633

 

 

 

6,020

 

 

 

2,487

 

 

 

59,103

 

 

 

(28,399

)

Income tax expense

 

 

11,705

 

 

 

24,297

 

 

 

29,571

 

 

 

31,953

 

 

 

36,137

 

 

 

97,526

 

 

 

135,107

 

Pre-provision net revenue

 

 

79,260

 

 

 

150,533

 

 

 

154,998

 

 

 

164,440

 

 

 

182,411

 

 

 

549,231

 

 

 

630,797

 

Taxable equivalent adjustment (o)

 

 

2,834

 

 

 

2,852

 

 

 

2,837

 

 

 

2,584

 

 

 

2,615

 

 

 

11,107

 

 

 

10,348

 

Pre-provision net revenue (TE)

 

 

82,094

 

 

 

153,385

 

 

 

157,835

 

 

 

167,024

 

 

 

185,026

 

 

 

560,338

 

 

 

641,145

 

Adjustments from supplemental disclosure items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of parking facility

 

 

(16,126

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(16,126

)

 

 

—

 

Loss on securities portfolio restructure

 

 

65,380

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

65,380

 

 

 

—

 

FDIC special assessment

 

 

26,123

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,123

 

 

 

—

 

Adjusted pre-provision net revenue (TE)

 

$

157,471

 

 

$

153,385

 

 

$

157,835

 

 

$

167,024

 

 

$

185,026

 

 

$

635,715

 

 

$

641,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE (TE), ADJUSTED REVENUE (TE) AND EFFICIENCY RATIO

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

(in thousands)

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

 

12/31/2022

 

 

12/31/2023

 

 

12/31/2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

269,460

 

 

$

269,234

 

 

$

273,911

 

 

$

284,994

 

 

$

295,501

 

 

$

1,097,599

 

 

$

1,050,003

 

Noninterest income

 

 

38,951

 

 

 

85,974

 

 

 

83,225

 

 

 

80,330

 

 

 

77,064

 

 

 

288,480

 

 

 

331,486

 

Total GAAP revenue

 

 

308,411

 

 

 

355,208

 

 

 

357,136

 

 

 

365,324

 

 

 

372,565

 

 

 

1,386,079

 

 

 

1,381,489

 

Taxable equivalent adjustment (o)

 

 

2,834

 

 

 

2,852

 

 

 

2,837

 

 

 

2,584

 

 

 

2,615

 

 

 

11,107

 

 

 

10,348

 

Total revenue (TE)

 

 

311,245

 

 

 

358,060

 

 

 

359,973

 

 

 

367,908

 

 

 

375,180

 

 

 

1,397,186

 

 

 

1,391,837

 

Adjustements from supplemental disclosure items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of parking facility

 

 

(16,126

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(16,126

)

 

 

—

 

Loss on securities portfolio restructure

 

 

65,380

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

65,380

 

 

 

—

 

Adjusted revenue (TE)

 

$

360,499

 

 

$

358,060

 

 

$

359,973

 

 

$

367,908

 

 

$

375,180

 

 

$

1,446,440

 

 

$

1,391,837

 

GAAP Noninterest expense

 

$

229,151

 

 

$

204,675

 

 

$

202,138

 

 

$

200,884

 

 

$

190,154

 

 

$

836,848

 

 

$

750,692

 

Amortization of Intangibles

 

 

(2,672

)

 

 

(2,813

)

 

 

(2,957

)

 

 

(3,114

)

 

 

(3,271

)

 

 

(11,556

)

 

 

(14,033

)

Adjustements from supplemental disclosure items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

(26,123

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(26,123

)

 

 

—

 

Adjusted noninterest expense

 

$

200,356

 

 

$

201,862

 

 

$

199,181

 

 

$

197,770

 

 

$

186,883

 

 

$

799,169

 

 

$

736,659

 

Efficiency ratio (p)

 

 

55.58

%

 

 

56.38

%

 

 

55.33

%

 

 

53.76

%

 

 

49.81

%

 

 

55.25

%

 

 

52.93

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(o) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.

 

 

 

 

(p) 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.

 

 

17