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

 

Exhibit 99.1

img88180657_0.jpg 

 

FOR IMMEDIATE RELEASE

April 16, 2024

For more information

Kathryn Shrout Mistich, VP, Investor Relations Manager

504.539.7836 or kathryn.mistich@hancockwhitney.com

 

 

Hancock Whitney reports first quarter 2024 EPS of $1.24

 

GULFPORT, Miss. (April 16, 2024) — Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the first quarter of 2024. Net income for the first quarter of 2024 totaled $108.6 million, or $1.24 per diluted common share (EPS), compared to $50.6 million, or $0.58 per diluted common share, in the fourth quarter of 2023. The first quarter of 2024 included a $3.8 million charge, or $0.04 per diluted common share, of a supplemental disclosure item, related to a revision to the FDIC Special Assessment. 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 $1.28, up $0.02 linked-quarter. The company reported net income for the first quarter of 2023 of $126.5 million, or $1.45 per diluted common share. There were no supplemental disclosure items in the first quarter of 2023.

First Quarter 2024 Highlights

•
Net income totaled $108.6 million, compared to $50.6 million in prior quarter
•
Adjusted pre-provision net revenue (PPNR) totaled $152.9 million, down $4.6 million, or 3% linked-quarter
•
Loans increased $49.0 million, or 1% LQA
•
Deposits increased $85.8 million, or 1% LQA
•
Criticized commercial loans and nonaccrual loans continued to normalize
•
ACL coverage remained solid at 1.42%, up 1 bp, compared to prior quarter
•
NIM 3.32%, up 5 bps compared to 4Q23
•
CET1 ratio estimated at 12.67%, up 34 bps linked-quarter; TCE ratio 8.61%, up 24 bps linked-quarter
•
Efficiency ratio 56.44%

“The first quarter’s results reflect a very positive start to 2024,” said John M. Hairston, President & CEO. “Our efforts to reposition our balance sheet and create opportunities for NIM expansion continued this quarter. NIM expansion was supported primarily by the impact of last quarter’s bond portfolio restructure and good control of deposit costs. We were also pleased with the quarter’s performance in fees and expense management. Credit metrics continued to normalize, but we do not see any broad signs of weakening in any portfolio or geographic segment. We maintained a

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robust ACL to loans of 1.42% and we continued to grow capital this quarter. As we look forward to celebrating our 125th year and beyond, we believe we continue to position ourselves to effectively navigate any operating environment.”

Loans

Total loans were $24.0 billion at March 31, 2024, up $49.0 million, or less than 1%, from December 31, 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 first quarter of 2024, 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 March 31, 2024 were $29.8 billion, up $85.8 million, or less than 1%, from December 31, 2023. The linked-quarter increase in deposits was driven primarily by an increase in interest-bearing transaction and saving and retail time deposits due to a shift from DDA deposits, offset by decreases in brokered deposits, noninterest-bearing DDAs, and interest-bearing public funds due to seasonality.

DDAs totaled $10.8 billion at March 31, 2024, down $228.4 million, or 2%, from December 31 2023 and comprised 36% of total period-end deposits. Interest-bearing transaction and savings deposits totaled $11.0 billion at the end of the first quarter of 2024, up $294.3 million, or 3%, linked-quarter. Compared to December 31, 2023, retail time deposits of $4.6 billion were up $291.7 million, or 7%, and brokered deposits were $394.8 million, down $195.0 million, or 33%, compared to the prior quarter. Interest-bearing public fund deposits decreased $76.7 million, or 2%, linked-quarter, totaling $3.1 billion at March 31, 2024.

Average deposits for the first quarter of 2024 were $29.6 billion, down $414.0 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 $340.8 million at March 31, 2024, up $4.0 million, or 1%, from December 31, 2023. During the first quarter of 2024, the company recorded a provision for credit losses of $13.0 million, compared to $17.0 million in the fourth quarter of 2023. There were $9.0 million of net charge-offs in the first quarter of 2024, or 0.15% of average total loans on an annualized basis, compared to net charge-offs of $16.1 million, or 0.27% of average total loans in the fourth quarter of 2023. The ratio of ACL to period-end loans was 1.42% at March 31, 2024, compared to 1.41% at December 31, 2023.

Criticized commercial loans and nonaccrual loans remained at low levels at March 31, 2024. Criticized commercial loans totaled $339.9 million, or 1.83% of total commercial loans, at March 31, 2024, compared to $273.7 million, or 1.47% of total commercial loans at December 31, 2023. Nonaccrual loans totaled $82.1 million, or 0.34% of total loans, at March 31, 2024, compared to

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$59.0 million, or 0.25% of total loans, at December 31, 2023. ORE and foreclosed assets were $2.8 million at March 31, 2024, down $0.8 million, linked-quarter.

Net Interest Income and Net Interest Margin (NIM)

Net interest income (TE) for the first quarter of 2024 was $269.0 million, a decrease of $3.3 million, or 1%, from the fourth quarter of 2023. The net interest margin (NIM) (TE) was 3.32% in the first quarter of 2024, up 5 bps linked-quarter. A change in loan yields (+4 bps), a shift in average earning assets and reduced borrowings (+6 bps) and the securities portfolio restructuring (+3 bps) led to a 13 basis point improvement in NIM, offset by the impact of change in deposit mix and rates (-8 bps). Additional NIM detail and guidance is included in the first quarter of 2024 earnings investor deck.

Average earning assets were $32.6 billion for the first quarter of 2024, down $571.3 million, or 2%, from the fourth quarter of 2023.

Noninterest Income

Noninterest income totaled $87.9 million for the first quarter of 2024, up $48.9 million, or 126%, from the fourth quarter of 2023. There were no supplemental disclosure items in the first quarter of 2024. The fourth quarter of 2023 included 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.

Service charges on deposits were up $0.6 million, or 3%, from the fourth quarter of 2023. Bank card and ATM fees were virtually unchanged from the fourth quarter of 2023.

Investment and annuity income and insurance fees were up $0.8 million, or 7%, linked-quarter, related to higher activity. Trust fees were up $0.2 million, or 1% linked-quarter. Fees from secondary mortgage operations totaled $2.9 million for the first quarter of 2024, up $0.8 million, or 39%, linked-quarter, due to higher origination and sales activity.

There were no gains or losses related to securities transactions in the first quarter of 2024. Securities transactions, net was a loss of $65.4 million in the fourth quarter of 2023, related to the securities portfolio restructuring included as a supplemental disclosure item.

Other noninterest income was $13.2 million in the first quarter of 2024, compared to $32.0 million in the fourth quarter of 2023. There were no supplemental disclosure items in the first quarter of 2024. In the fourth quarter of 2023, other noninterest income was impacted by the $16.1 million gain on the sale of the parking facility.

Noninterest Expense & Taxes

Noninterest expense totaled $207.7 million, down $21.4 million, or 9% linked-quarter. Included in the total was $3.8 million of a supplemental disclosure item related to a revision to the FDIC Special Assessment. Expenses in the fourth quarter of 2023 included a $26.1 million supplemental disclosure item related to an FDIC Special Assessment. Adjusting for these items, noninterest expense for the first quarter of 2024 totaled $203.9 million, virtually unchanged, up less than 1%, linked-quarter.

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Personnel expense totaled $121.2 million in the first quarter of 2024, up $6.8 million, or 6%, linked-quarter. The increase was primarily due to higher incentive expense, lower deferred salaries related to lending activities, and a seasonal increase in benefits costs. Net occupancy and equipment expense totaled $17.6 million in the first quarter of 2024, up $0.1 million, or 1%, from the fourth quarter of 2023. Amortization of intangibles totaled $2.5 million for the first quarter of 2024, down $0.1 million, or 5%, linked-quarter.

ORE and other foreclosed assets was a net gain of $0.2 million in the first quarter of 2024, compared to a net gain of $0.5 million in the fourth quarter of 2023.

Other expense, excluding the supplemental disclosure item, totaled $62.8 million in the first quarter of 2024, down $6.2 million, or 9%, linked-quarter, related to lower data processing and professional services expense.

The effective income tax rate for the first quarter of 2024 was 18.5%.

Capital

Common stockholders’ equity at March 31, 2024 totaled $3.9 billion, up $49.8 million, or 1%, from December 31, 2023. The tangible common equity (TCE) ratio was 8.61%, up 24 bps linked-quarter. The company’s CET1 ratio is estimated to be 12.67% at March 31, 2024, up 34 bps linked-quarter. Total risk-based capital ratio is estimated to be 14.37% at March 31, 2024, up 44 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 first quarter of 2024.

Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 3:30 p.m. Central Time on Tuesday, April 16, 2024 to review first quarter of 2024 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 first quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial 888-596-4144 or 646-968-2525, 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 April 23, 2024 by dialing 800-770-2030 or 609-800-9909, 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 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

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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. Management believes adjusted revenue, adjusted noninterest expense and the efficiency ratio 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 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

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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, 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, 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, 2023, and in other periodic reports that we file with the SEC.

 

 

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HANCOCK WHITNEY CORPORATION

 

QUARTERLY FINANCIAL HIGHLIGHTS

 

(Unaudited)

 

 

 

Three Months Ended

 

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

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

266,171

 

 

$

269,460

 

 

$

269,234

 

 

$

273,911

 

 

$

284,994

 

Net interest income (TE) (a)

 

 

269,001

 

 

 

272,294

 

 

 

272,086

 

 

 

276,748

 

 

 

287,578

 

Provision for credit losses

 

 

12,968

 

 

 

16,952

 

 

 

28,498

 

 

 

7,633

 

 

 

6,020

 

Noninterest income

 

 

87,851

 

 

 

38,951

 

 

 

85,974

 

 

 

83,225

 

 

 

80,330

 

Noninterest expense

 

 

207,722

 

 

 

229,151

 

 

 

204,675

 

 

 

202,138

 

 

 

200,884

 

Income tax expense

 

 

24,720

 

 

 

11,705

 

 

 

24,297

 

 

 

29,571

 

 

 

31,953

 

Net income

 

$

108,612

 

 

$

50,603

 

 

$

97,738

 

 

$

117,794

 

 

$

126,467

 

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

 

 

3,800

 

 

 

26,123

 

 

 

—

 

 

 

—

 

 

 

—

 

PERIOD-END BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,970,938

 

 

$

23,921,917

 

 

$

23,983,679

 

 

$

23,789,886

 

 

$

23,404,523

 

Securities

 

 

7,559,182

 

 

 

7,599,974

 

 

 

7,916,101

 

 

 

8,195,679

 

 

 

8,390,684

 

Earning assets

 

 

31,985,610

 

 

 

32,175,097

 

 

 

32,733,591

 

 

 

32,715,630

 

 

 

34,106,792

 

Total assets

 

 

35,247,119

 

 

 

35,578,573

 

 

 

36,298,301

 

 

 

36,210,148

 

 

 

37,547,083

 

Noninterest-bearing deposits

 

 

10,802,127

 

 

 

11,030,515

 

 

 

11,626,371

 

 

 

12,171,817

 

 

 

12,860,027

 

Total deposits

 

 

29,775,906

 

 

 

29,690,059

 

 

 

30,320,337

 

 

 

30,043,501

 

 

 

29,613,070

 

Common stockholders' equity

 

 

3,853,436

 

 

 

3,803,661

 

 

 

3,501,003

 

 

 

3,554,476

 

 

 

3,531,232

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,810,163

 

 

$

23,795,681

 

 

$

23,830,724

 

 

$

23,654,994

 

 

$

23,086,529

 

Securities (b)

 

 

8,197,410

 

 

 

8,579,444

 

 

 

8,888,477

 

 

 

9,007,821

 

 

 

9,137,034

 

Earning assets

 

 

32,556,821

 

 

 

33,128,130

 

 

 

33,137,565

 

 

 

33,619,829

 

 

 

32,753,781

 

Total assets

 

 

35,101,869

 

 

 

35,538,300

 

 

 

35,626,927

 

 

 

36,205,396

 

 

 

35,159,050

 

Noninterest-bearing deposits

 

 

10,673,060

 

 

 

11,132,354

 

 

 

11,453,236

 

 

 

12,153,453

 

 

 

12,963,133

 

Total deposits

 

 

29,560,956

 

 

 

29,974,941

 

 

 

29,757,180

 

 

 

29,372,899

 

 

 

28,792,851

 

Common stockholders' equity

 

 

3,818,840

 

 

 

3,560,978

 

 

 

3,572,487

 

 

 

3,567,260

 

 

 

3,412,813

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted

 

$

1.24

 

 

$

0.58

 

 

$

1.12

 

 

$

1.35

 

 

$

1.45

 

Cash dividends per share

 

 

0.30

 

 

 

0.30

 

 

 

0.30

 

 

 

0.30

 

 

 

0.30

 

Book value per share (period-end)

 

 

44.49

 

 

 

44.05

 

 

 

40.64

 

 

 

41.27

 

 

 

41.03

 

Tangible book value per share (period-end)

 

 

34.12

 

 

 

33.63

 

 

 

30.16

 

 

 

30.76

 

 

 

30.47

 

Weighted average number of shares - diluted

 

 

86,726

 

 

 

86,604

 

 

 

86,437

 

 

 

86,370

 

 

 

86,282

 

Period-end number of shares

 

 

86,622

 

 

 

86,345

 

 

 

86,148

 

 

 

86,123

 

 

 

86,066

 

Market data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High sales price

 

$

49.10

 

 

$

49.65

 

 

$

45.15

 

 

$

43.73

 

 

$

54.38

 

Low sales price

 

 

41.19

 

 

 

32.16

 

 

 

35.34

 

 

 

31.02

 

 

 

34.42

 

Period-end closing price

 

 

46.04

 

 

 

48.59

 

 

 

36.99

 

 

 

38.38

 

 

 

36.40

 

Trading volume

 

 

30,508

 

 

 

38,574

 

 

 

34,506

 

 

 

38,854

 

 

 

39,030

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.24

%

 

 

0.56

%

 

 

1.09

%

 

 

1.30

%

 

 

1.46

%

Return on average common equity

 

 

11.44

%

 

 

5.64

%

 

 

10.85

%

 

 

13.24

%

 

 

15.03

%

Return on average tangible common equity

 

 

14.96

%

 

 

7.55

%

 

 

14.53

%

 

 

17.76

%

 

 

20.49

%

Tangible common equity ratio (c)

 

 

8.61

%

 

 

8.37

%

 

 

7.34

%

 

 

7.50

%

 

 

7.16

%

Net interest margin (TE)

 

 

3.32

%

 

 

3.27

%

 

 

3.27

%

 

 

3.30

%

 

 

3.55

%

Noninterest income as a percentage of total revenue (TE)

 

 

24.62

%

 

 

12.51

%

 

 

24.01

%

 

 

23.21

%

 

 

21.83

%

Efficiency ratio (d)

 

 

56.44

%

 

 

55.58

%

 

 

56.38

%

 

 

55.33

%

 

 

53.76

%

Average loan/deposit ratio

 

 

80.55

%

 

 

79.39

%

 

 

80.08

%

 

 

80.53

%

 

 

80.18

%

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

 

 

1.31

%

 

 

1.29

%

 

 

1.28

%

 

 

1.32

%

 

 

1.32

%

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

 

 

1.42

%

 

 

1.41

%

 

 

1.40

%

 

 

1.45

%

 

 

1.46

%

Annualized net charge-offs to average loans

 

 

0.15

%

 

 

0.27

%

 

 

0.64

%

 

 

0.06

%

 

 

0.10

%

Allowance for loan losses as a % of nonaccrual loans

 

 

382.21

%

 

 

521.56

%

 

 

507.68

%

 

 

402.07

%

 

 

569.31

%

FTE headcount

 

 

3,564

 

 

 

3,591

 

 

 

3,681

 

 

 

3,705

 

 

 

3,679

 

(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.

 

 

 

7

 

 

 

 

 

 

 

 

 

HANCOCK WHITNEY CORPORATION

 

INCOME STATEMENT

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(in thousands, except per share data)

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

421,684

 

 

$

426,794

 

 

$

415,827

 

 

$

405,273

 

 

$

372,603

 

Interest income (TE) (f)

 

 

424,514

 

 

 

429,628

 

 

 

418,679

 

 

 

408,110

 

 

 

375,187

 

Interest expense

 

 

155,513

 

 

 

157,334

 

 

 

146,593

 

 

 

131,362

 

 

 

87,609

 

Net interest income (TE)

 

 

269,001

 

 

 

272,294

 

 

 

272,086

 

 

 

276,748

 

 

 

287,578

 

Provision for credit losses

 

 

12,968

 

 

 

16,952

 

 

 

28,498

 

 

 

7,633

 

 

 

6,020

 

Noninterest income

 

 

87,851

 

 

 

38,951

 

 

 

85,974

 

 

 

83,225

 

 

 

80,330

 

Noninterest expense

 

 

207,722

 

 

 

229,151

 

 

 

204,675

 

 

 

202,138

 

 

 

200,884

 

Income before income taxes

 

 

133,332

 

 

 

62,308

 

 

 

122,035

 

 

 

147,365

 

 

 

158,420

 

Income tax expense

 

 

24,720

 

 

 

11,705

 

 

 

24,297

 

 

 

29,571

 

 

 

31,953

 

Net income

 

$

108,612

 

 

$

50,603

 

 

$

97,738

 

 

$

117,794

 

 

$

126,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

3,800

 

 

 

26,123

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

22,239

 

 

$

21,643

 

 

$

22,264

 

 

$

21,491

 

 

$

20,622

 

Trust fees

 

 

17,077

 

 

 

16,845

 

 

 

16,593

 

 

 

17,393

 

 

 

16,734

 

Bank card and ATM fees

 

 

20,622

 

 

 

20,708

 

 

 

20,555

 

 

 

20,982

 

 

 

20,721

 

Investment and annuity fees and insurance commissions

 

 

11,844

 

 

 

11,086

 

 

 

8,520

 

 

 

8,241

 

 

 

8,867

 

Secondary mortgage market operations

 

 

2,891

 

 

 

2,083

 

 

 

2,609

 

 

 

2,299

 

 

 

2,168

 

Securities transactions, net

 

 

—

 

 

 

(65,380

)

 

 

—

 

 

 

—

 

 

 

—

 

Other income

 

 

13,178

 

 

 

31,966

 

 

 

15,433

 

 

 

12,819

 

 

 

11,218

 

Total noninterest income

 

$

87,851

 

 

$

38,951

 

 

$

85,974

 

 

$

83,225

 

 

$

80,330

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

$

121,157

 

 

$

114,342

 

 

$

116,266

 

 

$

114,864

 

 

$

115,323

 

Net occupancy and equipment expense

 

 

17,623

 

 

 

17,523

 

 

 

18,210

 

 

 

17,750

 

 

 

16,942

 

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

 

 

(196

)

 

 

(471

)

 

 

(26

)

 

 

(282

)

 

 

155

 

Other expense

 

 

66,612

 

 

 

95,085

 

 

 

67,412

 

 

 

66,849

 

 

 

65,350

 

Amortization of intangibles

 

 

2,526

 

 

 

2,672

 

 

 

2,813

 

 

 

2,957

 

 

 

3,114

 

Total noninterest expense

 

$

207,722

 

 

$

229,151

 

 

$

204,675

 

 

$

202,138

 

 

$

200,884

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.25

 

 

$

0.58

 

 

$

1.12

 

 

$

1.35

 

 

$

1.45

 

Diluted

 

 

1.24

 

 

 

0.58

 

 

 

1.12

 

 

 

1.35

 

 

 

1.45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

8

 

 

 

HANCOCK WHITNEY CORPORATION

 

PERIOD-END BALANCE SHEET

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

9,926,333

 

 

$

9,957,284

 

 

$

10,075,585

 

 

$

10,113,932

 

 

$

10,013,482

 

Commercial real estate - owner occupied loans

 

 

3,080,192

 

 

 

3,093,763

 

 

 

3,081,327

 

 

 

3,058,829

 

 

 

3,050,748

 

Total commercial and industrial loans

 

 

13,006,525

 

 

 

13,051,047

 

 

 

13,156,912

 

 

 

13,172,761

 

 

 

13,064,230

 

Commercial real estate - income producing loans

 

 

4,042,797

 

 

 

3,986,943

 

 

 

4,027,553

 

 

 

3,762,428

 

 

 

3,758,455

 

Construction and land development loans

 

 

1,541,773

 

 

 

1,551,091

 

 

 

1,614,846

 

 

 

1,768,252

 

 

 

1,726,916

 

Residential mortgage loans

 

 

3,983,321

 

 

 

3,886,072

 

 

 

3,721,106

 

 

 

3,581,514

 

 

 

3,329,793

 

Consumer loans

 

 

1,396,522

 

 

 

1,446,764

 

 

 

1,463,262

 

 

 

1,504,931

 

 

 

1,525,129

 

Total loans

 

 

23,970,938

 

 

 

23,921,917

 

 

 

23,983,679

 

 

 

23,789,886

 

 

 

23,404,523

 

Loans held for sale

 

 

16,470

 

 

 

26,124

 

 

 

15,862

 

 

 

55,902

 

 

 

23,436

 

Securities

 

 

7,559,182

 

 

 

7,599,974

 

 

 

7,916,101

 

 

 

8,195,679

 

 

 

8,390,684

 

Short-term investments

 

 

439,020

 

 

 

627,082

 

 

 

817,949

 

 

 

674,163

 

 

 

2,288,149

 

Earning assets

 

 

31,985,610

 

 

 

32,175,097

 

 

 

32,733,591

 

 

 

32,715,630

 

 

 

34,106,792

 

Allowance for loan losses

 

 

(313,726

)

 

 

(307,907

)

 

 

(306,291

)

 

 

(314,496

)

 

 

(309,385

)

Goodwill and other intangible assets

 

 

897,564

 

 

 

900,090

 

 

 

902,762

 

 

 

905,575

 

 

 

908,533

 

Other assets

 

 

2,677,671

 

 

 

2,811,293

 

 

 

2,968,239

 

 

 

2,903,439

 

 

 

2,841,143

 

Total assets

 

$

35,247,119

 

 

$

35,578,573

 

 

$

36,298,301

 

 

$

36,210,148

 

 

$

37,547,083

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

10,802,127

 

 

$

11,030,515

 

 

$

11,626,371

 

 

$

12,171,817

 

 

$

12,860,027

 

Interest-bearing transaction and savings deposits

 

 

10,954,231

 

 

 

10,659,970

 

 

 

10,668,241

 

 

 

10,438,820

 

 

 

10,660,420

 

Interest-bearing public fund deposits

 

 

3,066,270

 

 

 

3,143,015

 

 

 

2,853,236

 

 

 

2,925,432

 

 

 

3,086,209

 

Time deposits

 

 

4,953,278

 

 

 

4,856,559

 

 

 

5,172,489

 

 

 

4,507,432

 

 

 

3,006,414

 

Total interest-bearing deposits

 

 

18,973,779

 

 

 

18,659,544

 

 

 

18,693,966

 

 

 

17,871,684

 

 

 

16,753,043

 

Total deposits

 

 

29,775,906

 

 

 

29,690,059

 

 

 

30,320,337

 

 

 

30,043,501

 

 

 

29,613,070

 

Short-term borrowings

 

 

667,760

 

 

 

1,154,829

 

 

 

1,425,928

 

 

 

1,629,538

 

 

 

3,519,497

 

Long-term debt

 

 

236,355

 

 

 

236,317

 

 

 

236,279

 

 

 

236,241

 

 

 

242,115

 

Other liabilities

 

 

713,662

 

 

 

693,707

 

 

 

814,754

 

 

 

746,392

 

 

 

641,169

 

Total liabilities

 

 

31,393,683

 

 

 

31,774,912

 

 

 

32,797,298

 

 

 

32,655,672

 

 

 

34,015,851

 

COMMON STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock net of treasury and capital surplus

 

 

2,049,215

 

 

 

2,049,184

 

 

 

2,044,611

 

 

 

2,037,258

 

 

 

2,030,136

 

Retained earnings

 

 

2,457,736

 

 

 

2,375,604

 

 

 

2,351,386

 

 

 

2,280,004

 

 

 

2,188,561

 

Accumulated other comprehensive (loss)

 

 

(653,515

)

 

 

(621,127

)

 

 

(894,994

)

 

 

(762,786

)

 

 

(687,465

)

Total common stockholders' equity

 

 

3,853,436

 

 

 

3,803,661

 

 

 

3,501,003

 

 

 

3,554,476

 

 

 

3,531,232

 

Total liabilities & stockholders' equity

 

$

35,247,119

 

 

$

35,578,573

 

 

$

36,298,301

 

 

$

36,210,148

 

 

$

37,547,083

 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

2,955,872

 

 

$

2,903,571

 

 

$

2,598,241

 

 

$

2,648,901

 

 

$

2,622,699

 

Tier 1 capital (g)

 

 

3,651,927

 

 

 

3,584,474

 

 

 

3,552,824

 

 

 

3,471,066

 

 

 

3,369,351

 

Common equity as a percentage of total assets

 

 

10.93

%

 

 

10.69

%

 

 

9.65

%

 

 

9.82

%

 

 

9.40

%

Tangible common equity ratio

 

 

8.61

%

 

 

8.37

%

 

 

7.34

%

 

 

7.50

%

 

 

7.16

%

Leverage (Tier 1) ratio (g)

 

 

10.49

%

 

 

10.10

%

 

 

10.01

%

 

 

9.64

%

 

 

9.63

%

Common equity tier 1 (CET1) ratio (g)

 

 

12.67

%

 

 

12.33

%

 

 

12.06

%

 

 

11.83

%

 

 

11.60

%

Tier 1 risk-based capital ratio (g)

 

 

12.67

%

 

 

12.33

%

 

 

12.06

%

 

 

11.83

%

 

 

11.60

%

Total risk-based capital ratio (g)

 

 

14.37

%

 

 

13.93

%

 

 

13.63

%

 

 

13.44

%

 

 

13.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

 

9

 

 

HANCOCK WHITNEY CORPORATION

 

AVERAGE BALANCE SHEET

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(in thousands)

 

3/31/2024

 

 

12/31/2023

 

 

3/31/2023

 

ASSETS

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

9,806,126

 

 

$

9,880,704

 

 

$

9,940,138

 

Commercial real estate - owner occupied loans

 

 

3,082,085

 

 

 

3,087,301

 

 

 

3,044,495

 

Total commercial and industrial loans

 

 

12,888,211

 

 

 

12,968,005

 

 

 

12,984,633

 

Commercial real estate - income producing loans

 

 

3,989,675

 

 

 

3,965,280

 

 

 

3,585,108

 

Construction and land development loans

 

 

1,553,093

 

 

 

1,615,599

 

 

 

1,752,448

 

Residential mortgage loans

 

 

3,963,030

 

 

 

3,803,702

 

 

 

3,214,439

 

Consumer loans

 

 

1,416,154

 

 

 

1,443,095

 

 

 

1,549,901

 

Total loans

 

 

23,810,163

 

 

 

23,795,681

 

 

 

23,086,529

 

Loans held for sale

 

 

15,441

 

 

 

12,347

 

 

 

22,922

 

Securities (h)

 

 

8,197,410

 

 

 

8,579,444

 

 

 

9,137,034

 

Short-term investments

 

 

533,807

 

 

 

740,658

 

 

 

507,296

 

Earning assets

 

 

32,556,821

 

 

 

33,128,130

 

 

 

32,753,781

 

Allowance for loan losses

 

 

(311,649

)

 

 

(307,434

)

 

 

(309,479

)

Goodwill and other intangible assets

 

 

898,781

 

 

 

901,377

 

 

 

910,043

 

Other assets

 

 

1,957,916

 

 

 

1,816,227

 

 

 

1,804,705

 

Total assets

 

$

35,101,869

 

 

$

35,538,300

 

 

$

35,159,050

 

LIABILITIES AND COMMON STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

10,673,060

 

 

$

11,132,354

 

 

$

12,963,133

 

Interest-bearing transaction and savings deposits

 

 

10,803,196

 

 

 

10,681,936

 

 

 

10,650,434

 

Interest-bearing public fund deposits

 

 

3,119,406

 

 

 

2,896,317

 

 

 

3,160,651

 

Time deposits

 

 

4,965,294

 

 

 

5,264,334

 

 

 

2,018,633

 

Total interest-bearing deposits

 

 

18,887,896

 

 

 

18,842,587

 

 

 

15,829,718

 

Total deposits

 

 

29,560,956

 

 

 

29,974,941

 

 

 

28,792,851

 

Short-term borrowings

 

 

783,990

 

 

 

993,810

 

 

 

2,098,629

 

Long-term debt

 

 

236,336

 

 

 

236,298

 

 

 

242,096

 

Other liabilities

 

 

701,747

 

 

 

772,273

 

 

 

612,661

 

Common stockholders' equity

 

 

3,818,840

 

 

 

3,560,978

 

 

 

3,412,813

 

Total liabilities & stockholders' equity

 

$

35,101,869

 

 

$

35,538,300

 

 

$

35,159,050

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

10

 

 

 

HANCOCK WHITNEY CORPORATION

 

AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

3/31/2024

 

 

12/31/2023

 

 

3/31/2023

 

(dollars in millions)

 

Average
 Balance

 

 

Interest

 

 

Rate

 

 

Average
  Balance

 

 

Interest

 

 

Rate

 

 

Average
 Balance

 

 

Interest

 

 

Rate

 

AVERAGE EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans (TE) (i)

 

$

18,431.0

 

 

$

295.7

 

 

 

6.45

%

 

$

18,548.9

 

 

$

297.6

 

 

 

6.37

%

 

$

18,322.2

 

 

$

259.1

 

 

 

5.73

%

Residential mortgage loans

 

 

3,963.0

 

 

 

36.9

 

 

 

3.72

%

 

 

3,803.7

 

 

 

35.2

 

 

 

3.70

%

 

 

3,214.4

 

 

 

28.1

 

 

 

3.49

%

Consumer loans

 

 

1,416.2

 

 

 

31.3

 

 

 

8.88

%

 

 

1,443.1

 

 

 

31.9

 

 

 

8.79

%

 

 

1,549.9

 

 

 

29.2

 

 

 

7.63

%

Loan fees & late charges

 

 

—

 

 

 

1.0

 

 

 

0.00

%

 

 

—

 

 

 

1.4

 

 

 

0.00

%

 

 

—

 

 

 

(0.4

)

 

 

0.00

%

Total loans (TE) (j) (k)

 

 

23,810.2

 

 

 

364.9

 

 

 

6.16

%

 

 

23,795.7

 

 

 

366.1

 

 

 

6.11

%

 

 

23,086.5

 

 

 

316.0

 

 

 

5.54

%

Loans held for sale

 

 

15.4

 

 

 

0.3

 

 

 

7.90

%

 

 

12.3

 

 

 

0.3

 

 

 

8.52

%

 

 

22.9

 

 

 

0.3

 

 

 

5.21

%

US Treasury and government agency securities

 

 

515.6

 

 

 

3.5

 

 

 

2.69

%

 

 

654.1

 

 

 

5.2

 

 

 

3.18

%

 

 

541.3

 

 

 

3.4

 

 

 

2.49

%

CMOs and mortgage backed securities

 

 

6,792.5

 

 

 

42.4

 

 

 

2.50

%

 

 

7,031.9

 

 

 

41.2

 

 

 

2.34

%

 

 

7,668.0

 

 

 

43.3

 

 

 

2.26

%

Municipals (TE)

 

 

865.8

 

 

 

6.4

 

 

 

2.96

%

 

 

870.0

 

 

 

6.5

 

 

 

2.97

%

 

 

904.3

 

 

 

6.7

 

 

 

2.98

%

Other securities

 

 

23.5

 

 

 

0.2

 

 

 

3.51

%

 

 

23.4

 

 

 

0.2

 

 

 

3.51

%

 

 

23.5

 

 

 

0.2

 

 

 

3.50

%

Total securities (TE) (l)

 

 

8,197.4

 

 

 

52.5

 

 

 

2.56

%

 

 

8,579.4

 

 

 

53.1

 

 

 

2.47

%

 

 

9,137.1

 

 

 

53.6

 

 

 

2.35

%

Total short-term investments

 

 

533.8

 

 

 

6.8

 

 

 

5.11

%

 

 

740.7

 

 

 

10.1

 

 

 

5.43

%

 

 

507.3

 

 

 

5.3

 

 

 

4.27

%

Average earning assets yield (TE)

 

$

32,556.8

 

 

$

424.5

 

 

 

5.24

%

 

$

33,128.1

 

 

$

429.6

 

 

 

5.16

%

 

$

32,753.8

 

 

$

375.2

 

 

 

4.63

%

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction and savings deposits

 

$

10,803.2

 

 

$

60.1

 

 

 

2.24

%

 

$

10,681.9

 

 

$

56.9

 

 

 

2.11

%

 

$

10,650.4

 

 

$

27.3

 

 

 

1.04

%

Time deposits

 

 

4,965.3

 

 

 

59.1

 

 

 

4.79

%

 

 

5,264.3

 

 

 

62.4

 

 

 

4.71

%

 

 

2,018.6

 

 

 

13.4

 

 

 

2.70

%

Public funds

 

 

3,119.4

 

 

 

28.3

 

 

 

3.65

%

 

 

2,896.3

 

 

 

26.8

 

 

 

3.68

%

 

 

3,160.7

 

 

 

23.7

 

 

 

3.04

%

Total interest-bearing deposits

 

 

18,887.9

 

 

 

147.5

 

 

 

3.14

%

 

 

18,842.5

 

 

 

146.1

 

 

 

3.08

%

 

 

15,829.7

 

 

 

64.4

 

 

 

1.65

%

Short-term borrowings

 

 

784.0

 

 

 

5.0

 

 

 

2.55

%

 

 

993.8

 

 

 

8.1

 

 

 

3.24

%

 

 

2,098.6

 

 

 

20.1

 

 

 

3.88

%

Long-term debt

 

 

236.3

 

 

 

3.0

 

 

 

5.19

%

 

 

236.3

 

 

 

3.1

 

 

 

5.19

%

 

 

242.1

 

 

 

3.1

 

 

 

5.11

%

Total borrowings

 

 

1,020.3

 

 

 

8.0

 

 

 

3.16

%

 

 

1,230.1

 

 

 

11.2

 

 

 

3.62

%

 

 

2,340.7

 

 

 

23.2

 

 

 

4.00

%

Total interest-bearing liabilities cost

 

 

19,908.2

 

 

 

155.5

 

 

 

3.14

%

 

 

20,072.6

 

 

 

157.3

 

 

 

3.11

%

 

 

18,170.4

 

 

 

87.6

 

 

 

1.95

%

Net interest-free funding sources

 

 

12,648.6

 

 

 

 

 

 

 

 

 

13,055.5

 

 

 

 

 

 

 

 

 

14,583.4

 

 

 

 

 

 

 

Total cost of funds

 

 

32,556.8

 

 

 

155.5

 

 

 

1.92

%

 

 

33,128.1

 

 

 

157.3

 

 

 

1.88

%

 

 

32,753.8

 

 

 

87.6

 

 

 

1.08

%

Net Interest Spread (TE)

 

 

 

 

$

269.0

 

 

 

2.10

%

 

 

 

 

$

272.3

 

 

 

2.05

%

 

 

 

 

$

287.6

 

 

 

2.67

%

Net Interest Margin (TE)

 

$

32,556.8

 

 

$

269.0

 

 

 

3.32

%

 

$

33,128.1

 

 

$

272.3

 

 

 

3.27

%

 

$

32,753.8

 

 

$

287.6

 

 

 

3.55

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 $0.3 million, $0.4 million and $0.8 million for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, respectively.

 

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

 

 

 

 

11

 

 

HANCOCK WHITNEY CORPORATION

 

ASSET QUALITY INFORMATION

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(dollars in thousands)

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

Nonaccrual loans (m)

 

$

82,082

 

 

$

59,036

 

 

$

60,331

 

 

$

78,220

 

 

$

54,344

 

ORE and foreclosed assets

 

 

2,793

 

 

 

3,628

 

 

 

4,527

 

 

 

2,174

 

 

 

1,976

 

Total nonaccrual loans + ORE and foreclosed assets

 

$

84,875

 

 

$

62,664

 

 

$

64,858

 

 

$

80,394

 

 

$

56,320

 

Nonaccrual loans as a percentage of loans

 

 

0.34

%

 

 

0.25

%

 

 

0.25

%

 

 

0.33

%

 

 

0.23

%

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

 

 

0.35

%

 

 

0.26

%

 

 

0.27

%

 

 

0.34

%

 

 

0.24

%

Accruing loans 90 days past due

 

$

7,938

 

 

$

9,609

 

 

$

24,170

 

 

$

7,552

 

 

$

13,155

 

Accruing loans 90 days past due as a percentage of loans

 

 

0.03

%

 

 

0.04

%

 

 

0.10

%

 

 

0.03

%

 

 

0.06

%

Modified/restructured loans - still accruing (n)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Modified loans - still accruing

 

$

37,425

 

 

$

24,448

 

 

$

28,849

 

 

$

1,010

 

 

$

10

 

Modified loans - still accruing as a % of loans

 

 

0.16

%

 

 

0.10

%

 

 

0.12

%

 

 

0.00

%

 

 

0.00

%

PROVISION AND ALLOWANCE FOR CREDIT LOSSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

307,907

 

 

$

306,291

 

 

$

314,496

 

 

$

309,385

 

 

$

307,789

 

Provision for loan losses

 

 

14,799

 

 

 

17,671

 

 

 

30,045

 

 

 

8,487

 

 

 

7,315

 

Charge-offs

 

 

(23,366

)

 

 

(19,601

)

 

 

(41,234

)

 

 

(6,616

)

 

 

(7,972

)

Recoveries

 

 

14,386

 

 

 

3,546

 

 

 

2,984

 

 

 

3,240

 

 

 

2,253

 

Net charge-offs

 

 

(8,980

)

 

 

(16,055

)

 

 

(38,250

)

 

 

(3,376

)

 

 

(5,719

)

Ending Balance

 

$

313,726

 

 

$

307,907

 

 

$

306,291

 

 

$

314,496

 

 

$

309,385

 

Reserve for Unfunded Lending Commitments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

28,894

 

 

$

29,613

 

 

$

31,160

 

 

$

32,014

 

 

$

33,309

 

Provision for losses on unfunded lending commitments

 

 

(1,831

)

 

 

(719

)

 

 

(1,547

)

 

 

(854

)

 

 

(1,295

)

Ending balance

 

$

27,063

 

 

$

28,894

 

 

$

29,613

 

 

$

31,160

 

 

$

32,014

 

Total allowance for credit losses

 

$

340,789

 

 

$

336,801

 

 

$

335,904

 

 

$

345,656

 

 

$

341,399

 

Total provision for credit losses

 

$

12,968

 

 

$

16,952

 

 

$

28,498

 

 

$

7,633

 

 

$

6,020

 

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

 

 

1.31

%

 

 

1.29

%

 

 

1.28

%

 

 

1.32

%

 

 

1.32

%

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

 

 

1.42

%

 

 

1.41

%

 

 

1.40

%

 

 

1.45

%

 

 

1.46

%

Allowance for loan losses as a % of nonaccrual loans

 

 

382.21

%

 

 

521.56

%

 

 

507.68

%

 

 

402.07

%

 

 

569.31

%

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

5,254

 

 

$

12,747

 

 

$

35,506

 

 

$

1,233

 

 

$

3,355

 

Residential mortgage loans

 

 

(146

)

 

 

(388

)

 

 

(383

)

 

 

(291

)

 

 

(161

)

Consumer loans

 

 

3,872

 

 

 

3,696

 

 

 

3,127

 

 

 

2,434

 

 

 

2,525

 

Total net charge-offs

 

$

8,980

 

 

$

16,055

 

 

$

38,250

 

 

$

3,376

 

 

$

5,719

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

0.11

%

 

 

0.27

%

 

 

0.75

%

 

 

0.03

%

 

 

0.07

%

Residential mortgage loans

 

 

(0.01

)%

 

 

(0.04

)%

 

 

(0.04

)%

 

 

(0.03

)%

 

 

(0.02

)%

Consumer loans

 

 

1.10

%

 

 

1.02

%

 

 

0.84

%

 

 

0.64

%

 

 

0.66

%

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

 

 

0.15

%

 

 

0.27

%

 

 

0.64

%

 

 

0.06

%

 

 

0.10

%

AVERAGE LOANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

18,430,979

 

 

$

18,548,884

 

 

$

18,678,969

 

 

$

18,670,814

 

 

$

18,322,189

 

Residential mortgage loans

 

 

3,963,030

 

 

 

3,803,702

 

 

 

3,669,922

 

 

 

3,469,030

 

 

 

3,214,439

 

Consumer loans

 

 

1,416,154

 

 

 

1,443,095

 

 

 

1,481,833

 

 

 

1,515,150

 

 

 

1,549,901

 

Total average loans

 

$

23,810,163

 

 

$

23,795,681

 

 

$

23,830,724

 

 

$

23,654,994

 

 

$

23,086,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(m) Included in nonaccrual loans are nonaccruing modified loans to borrowers experiencing financial difficulties totaling $0.2 million at March 31, 2024, less than $0.1 million at both December 31, 2023 and September 30, 2023, and $1.6 million at both June 30, 2023 and March 31, 2023.

 

 

 

12

 

 

 

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

 

(in thousands)

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

Net Income (GAAP)

 

$

108,612

 

 

$

50,603

 

 

$

97,738

 

 

$

117,794

 

 

$

126,467

 

Provision for credit losses

 

 

12,968

 

 

 

16,952

 

 

 

28,498

 

 

 

7,633

 

 

 

6,020

 

Income tax expense

 

 

24,720

 

 

 

11,705

 

 

 

24,297

 

 

 

29,571

 

 

 

31,953

 

Pre-provision net revenue

 

 

146,300

 

 

 

79,260

 

 

 

150,533

 

 

 

154,998

 

 

 

164,440

 

Taxable equivalent adjustment (n)

 

 

2,830

 

 

 

2,834

 

 

 

2,852

 

 

 

2,837

 

 

 

2,584

 

Pre-provision net revenue (TE)

 

 

149,130

 

 

 

82,094

 

 

 

153,385

 

 

 

157,835

 

 

 

167,024

 

Adjustments from supplemental disclosure items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of parking facility

 

 

—

 

 

 

(16,126

)

 

 

—

 

 

 

—

 

 

 

—

 

Loss on securities portfolio restructure

 

 

—

 

 

 

65,380

 

 

 

—

 

 

 

—

 

 

 

—

 

FDIC special assessment

 

 

3,800

 

 

 

26,123

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted pre-provision net revenue (TE)

 

$

152,930

 

 

$

157,471

 

 

$

153,385

 

 

$

157,835

 

 

$

167,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

Three Months Ended

 

(in thousands)

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

266,171

 

 

$

269,460

 

 

$

269,234

 

 

$

273,911

 

 

$

284,994

 

Noninterest income

 

 

87,851

 

 

 

38,951

 

 

 

85,974

 

 

 

83,225

 

 

 

80,330

 

Total GAAP revenue

 

 

354,022

 

 

 

308,411

 

 

 

355,208

 

 

 

357,136

 

 

 

365,324

 

Taxable equivalent adjustment (n)

 

 

2,830

 

 

 

2,834

 

 

 

2,852

 

 

 

2,837

 

 

 

2,584

 

Total revenue (TE)

 

 

356,852

 

 

 

311,245

 

 

 

358,060

 

 

 

359,973

 

 

 

367,908

 

Adjustments from supplemental disclosure items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of parking facility

 

 

—

 

 

 

(16,126

)

 

 

—

 

 

 

—

 

 

 

—

 

Loss on securities portfolio restructure

 

 

—

 

 

 

65,380

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted revenue (TE)

 

$

356,852

 

 

$

360,499

 

 

$

358,060

 

 

$

359,973

 

 

$

367,908

 

GAAP Noninterest expense

 

$

207,722

 

 

$

229,151

 

 

$

204,675

 

 

$

202,138

 

 

$

200,884

 

Amortization of Intangibles

 

 

(2,526

)

 

 

(2,672

)

 

 

(2,813

)

 

 

(2,957

)

 

 

(3,114

)

Adjustments from supplemental disclosure items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

(3,800

)

 

 

(26,123

)

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted noninterest expense for efficiency

 

$

201,396

 

 

$

200,356

 

 

$

201,862

 

 

$

199,181

 

 

$

197,770

 

Efficiency ratio (o)

 

 

56.44

%

 

 

55.58

%

 

 

56.38

%

 

 

55.33

%

 

 

53.76

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(o) 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.

 

 

13