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

 

Exhibit 99.1

img88180657_0.jpg 

 

FOR IMMEDIATE RELEASE

October 17, 2023

For more information

Kathryn Shrout Mistich, VP, Investor Relations Manager

504.539.7836 or kathryn.mistich@hancockwhitney.com

 

 

Hancock Whitney reports third quarter 2023 EPS of $1.12

 

GULFPORT, Miss. (October 17, 2023) — Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the third quarter of 2023. Net income for the third quarter of 2023 totaled $97.7 million, or $1.12 per diluted common share (EPS), compared to $117.8 million, or $1.35 per diluted common share, in the second quarter of 2023. The company reported net income for the third quarter of 2022 of $135.4 million, or $1.55 per diluted common share.

Third Quarter 2023 Highlights

•
3Q23 net income impacted by “idiosyncratic” charge-off of $29.7 million
•
Pre-provision net revenue (PPNR) totaled $153.4 million, compared to $157.8 million in 2Q23
•
Deposits increased $277 million, or 4% LQA
•
Loan growth of $194 million, or 3% LQA
•
Criticized commercial loans and nonaccrual loans remain at low levels
•
ACL coverage remained solid at 1.40%
•
NIM 3.27%, compared to 3.30% in 2Q23
•
CET1 ratio estimated at 12.04%, up 21 bps linked-quarter; TCE ratio 7.34%, compared to 7.50% in 2Q23
•
Efficiency ratio 56.38%

“Third quarter of 2023 results reflect the continued strength and stability of our Company,” said John M. Hairston, President & CEO. “Despite the ongoing challenges in today’s operating environment, we were able to fully fund loan growth with client deposit growth. Our NIM compression moderated this quarter as deposit betas slowed despite the continued remix of DDAs, our funding mix improved, and we reported an improved earning asset yield. Aside from the previously disclosed idiosyncratic charge-off, our problem credit metrics remain at historically low levels and we do not see any broad weaknesses in our loan portfolio. We continue to control expenses and are focused on growing fee income. We maintained a robust ACL to loans of 1.40% and our capital remains solid with estimated tier 1 leverage ratio above 10% and tier 1 common equity above 12%. We remain well capitalized including all unrealized losses in our portfolio. As we celebrate Hancock Whitney Founders Month, we are exceptionally proud of the efforts of our team in continuing our 124-year legacy and in our commitment to the people and communities we serve.”

 

1

 

 

Loans

 

Total loans were $24.0 billion at September 30, 2023, up $193.8 million, or 1%, from June 30, 2023. One-time close products drove the increase in mortgage loans, which convert from construction and development loans to permanent mortgages at construction completion. CRE-income producing loans increased this quarter related to completed multifamily construction projects, which converted from construction and development loans to permanent CRE-income producing at construction completion, and slowing loan prepayments.

Average loans totaled $23.8 billion for the third quarter of 2023, up $175.7 million, or 1%, linked-quarter. Management expects 2023 period-end loan growth to be in the range of low- to mid-single digits compared to year-end 2022.

Deposits

 

Total deposits at September 30, 2023 were $30.3 billion, up $276.8 million, or 1%, from June 30, 2023. The growth in deposits was primarily due to an increase of interest-bearing transaction and savings deposits mostly due to competitive rates offered and an increase in time deposits related to a shift from DDA deposits, offset by a decrease in noninterest bearing DDAs and a decrease in interest-bearing public funds related to seasonal activity.

DDAs totaled $11.6 billion at September 30, 2023, down $545.4 million, or 4%, from June 30, 2023 and comprised 38% of total period-end deposits. Interest-bearing transaction and savings deposits totaled $10.7 billion at the end of the third quarter of 2023, an increase of $229.4 million, or 2%, linked-quarter. Compared to June 30, 2023, retail time deposits of $4.0 billion were up $670.3 million, or 20%, and brokered deposits were $1.2 billion, virtually unchanged compared to the prior quarter. Interest-bearing public fund deposits decreased $72.2 million, or 2%, linked-quarter, ending September 30, 2023 at $2.9 billion.

Average deposits for the third quarter of 2023 were $29.8 billion, up $384.3 million, or 1%, linked-quarter. Management expects 2023 period-end deposit level growth to be flat to low single digits compared to year-end 2022.

Asset Quality

 

The total allowance for credit losses (ACL) was $335.9 million at September 30, 2023, down $9.8 million, or 3%, from June 30, 2023. During the third quarter of 2023, the company recorded a provision for credit losses of $28.5 million, compared to a provision for credit losses of $7.6 million in the second quarter of 2023. There were $38.3 million of net charge-offs in the third quarter of 2023, or 0.64% of average total loans on an annualized basis, compared to net charge-offs of $3.4 million, or 0.06% of average total loans in the second quarter of 2023. The ratio of ACL to period-end loans was 1.40% at September 30, 2023, compared to 1.45% at June 30, 2023.

Criticized commercial loans and nonaccrual loans remained at low levels at September 30, 2023. Criticized commercial loans totaled $275.1 million, or 1.46% of total commercial loans, at September 30, 2023, compared to $302.2 million, or 1.62% of total commercial loans at June 30, 2023. Nonaccrual loans totaled $60.3 million, or 0.25% of total loans, at September 30, 2023, compared to $78.2 million, or 0.33% of total loans, at June 30, 2023. ORE and foreclosed assets were $4.5 million, up $2.4 million, linked-quarter.

 

 

2

 

 

Net Interest Income and Net Interest Margin (NIM)

 

Net interest income (TE) for the third quarter of 2023 was $272.1 million, a decrease of $4.7 million, or 2%, from the second quarter of 2023. The net interest margin (NIM) (TE) was 3.27% in the third quarter of 2023, down 3 bps linked-quarter. A change in the mix of earning assets and loan yields (+16 bps) and decreased short term borrowing costs (+5 bps) led to a 21 basis point improvement in the NIM, offset by the impact of deposit remix and rates (-24 bps). Additional NIM detail and guidance is included in the third quarter of 2023 earnings investor deck.

Average earning assets were $33.1 billion for the third quarter of 2023, down $482.3 million, or 1%, from the second quarter of 2023.

Noninterest Income

 

Noninterest income totaled $86.0 million for the third quarter of 2023, up $2.8 million, or 3%, from the second quarter of 2023.

Service charges on deposits were up $0.8 million, or 4%, from the second quarter of 2023. The increase was primarily related to higher account activity. Bank card and ATM fees were down $0.4 million, or 2%, from the second quarter of 2023.

Investment and annuity income and insurance fees were up $0.3 million, or 3%, linked-quarter. Trust fees were down $0.8 million, or 5% linked-quarter, related to 2Q23 seasonal tax accounting fees. Fees from secondary mortgage operations totaled $2.6 million for the third quarter of 2023, up $0.3 million, or 13%, linked-quarter.

Other noninterest income totaled $15.4 million, up $2.6 million, or 20%, from the second quarter of 2023. The increase in other noninterest income was primarily related to increased FHLB dividends, SBIC income and loan-related fee income from specialty lines of business.

Noninterest Expense & Taxes

 

Noninterest expense totaled $204.7 million, up $2.6 million, or 1% linked-quarter.

Personnel expense totaled $116.3 million in the third quarter of 2023, up $1.4 million, or 1%, linked-quarter. The increase was primarily related to a reduction in the amount of personnel expense deferred (FAS 91) due to lower loan originations. Net occupancy and equipment expense totaled $18.2 million in the third quarter of 2023, up $0.5 million, or 3%, from the second quarter of 2023. Amortization of intangibles totaled $2.8 million for the third quarter of 2023, down $0.1 million, or 5%, linked-quarter.

ORE and other foreclosed assets gains exceeded expenses by less than $0.1 million in the third quarter of 2023, compared to a gain of $0.3 million in the second quarter of 2023.

Other expense totaled $67.4 million in the third quarter of 2023, up $0.6 million, or 1%, linked-quarter.

The effective income tax rate for third quarter 2023 was 19.9%.

 

 

 

3

 

 

 

Capital

 

Common stockholders’ equity at September 30, 2023 totaled $3.5 billion, down $53.4 million, or 2%, from June 30, 2023. The tangible common equity (TCE) ratio was 7.34%, down 16 bps from June 30, 2023. The company’s CET1 ratio is estimated to be 12.04% at September 30, 2023, up 21 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 third quarter of 2023.

Conference Call and Slide Presentation

 

Management will host a conference call for analysts and investors at 4:00 p.m. Central Time on Tuesday, October 17, 2023 to review third 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 third 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 October 24, 2023 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 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.

4

 

 

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. These non-GAAP measures may reference the concept “operating.” We use the term “operating” to describe a financial measure that excludes income or expense considered to be nonoperating in nature. Items identified as nonoperating are those that, when excluded from a reported financial measure, provide management or the reader with a measure that may be more indicative of forward-looking trends in our business.

We define Operating Pre-Provision Net Revenue as total revenue (te) less noninterest expense, excluding nonoperating items. Management believes that operating 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.

Important Cautionary Statement about Forward-Looking Statements

 

This news release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements that we may make include statements regarding our expectations of our performance and financial condition, balance sheet and revenue growth, the provision for credit losses, capital levels, deposits (including growth, pricing and betas), investment portfolio, other sources of liquidity, loan growth expectations, management’s predictions about charge-offs for loans, general economic business conditions in our local markets, the impacts related to Russia’s military action in Ukraine, Federal Reserve action with respect to interest rates, the adequacy of our enterprise risk management framework, potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions, as well as the impact of recent 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 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, 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.

In addition, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “forecast,” “goals,” “targets,” “initiatives,” “focus,” “potentially,” “probably,” “projects,” “outlook," or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. Forward-looking statements are subject to significant risks and uncertainties. Any forward-looking statement made in this release is subject to the safe harbor protections set forth in the Private Securities Litigation Reform Act

5

 

 

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.

 

 

6

 

 

 

 

HANCOCK WHITNEY CORPORATION

 

FINANCIAL HIGHLIGHTS

 

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

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

 

9/30/2023

 

 

6/30/2023

 

 

9/30/2022

 

 

9/30/2023

 

 

9/30/2022

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

269,234

 

 

$

273,911

 

 

$

280,307

 

 

$

828,139

 

 

$

754,502

 

Net interest income (TE) (a)

 

 

272,086

 

 

 

276,748

 

 

 

282,910

 

 

 

836,412

 

 

 

762,235

 

Provision for credit losses

 

 

28,498

 

 

 

7,633

 

 

 

1,402

 

 

 

42,151

 

 

 

(30,886

)

Noninterest income

 

 

85,974

 

 

 

83,225

 

 

 

85,337

 

 

 

249,529

 

 

 

254,422

 

Noninterest expense

 

 

204,675

 

 

 

202,138

 

 

 

193,502

 

 

 

607,697

 

 

 

560,538

 

Income tax expense

 

 

24,297

 

 

 

29,571

 

 

 

35,351

 

 

 

85,821

 

 

 

98,970

 

Net income

 

$

97,738

 

 

$

117,794

 

 

$

135,389

 

 

$

341,999

 

 

$

380,302

 

PERIOD-END BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,983,679

 

 

$

23,789,886

 

 

$

22,585,585

 

 

$

23,983,679

 

 

$

22,585,585

 

Securities

 

 

7,916,101

 

 

 

8,195,679

 

 

 

8,333,191

 

 

 

7,916,101

 

 

 

8,333,191

 

Earning assets

 

 

32,733,591

 

 

 

32,715,630

 

 

 

31,213,449

 

 

 

32,733,591

 

 

 

31,213,449

 

Total assets

 

 

36,298,301

 

 

 

36,210,148

 

 

 

34,567,242

 

 

 

36,298,301

 

 

 

34,567,242

 

Noninterest-bearing deposits

 

 

11,626,371

 

 

 

12,171,817

 

 

 

14,290,817

 

 

 

11,626,371

 

 

 

14,290,817

 

Total deposits

 

 

30,320,337

 

 

 

30,043,501

 

 

 

28,951,274

 

 

 

30,320,337

 

 

 

28,951,274

 

Common stockholders' equity

 

 

3,501,003

 

 

 

3,554,476

 

 

 

3,180,439

 

 

 

3,501,003

 

 

 

3,180,439

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,830,724

 

 

$

23,654,994

 

 

$

22,138,709

 

 

$

23,526,808

 

 

$

21,643,149

 

Securities (b)

 

 

8,888,477

 

 

 

9,007,821

 

 

 

9,177,460

 

 

 

9,010,201

 

 

 

8,949,988

 

Earning assets

 

 

33,137,565

 

 

 

33,619,829

 

 

 

31,783,801

 

 

 

33,171,798

 

 

 

32,583,652

 

Total assets

 

 

35,626,927

 

 

 

36,205,396

 

 

 

34,377,773

 

 

 

35,665,505

 

 

 

35,247,985

 

Noninterest-bearing deposits

 

 

11,453,236

 

 

 

12,153,453

 

 

 

14,323,646

 

 

 

12,184,410

 

 

 

14,447,445

 

Total deposits

 

 

29,757,180

 

 

 

29,372,899

 

 

 

29,180,626

 

 

 

29,311,176

 

 

 

29,727,009

 

Common stockholders' equity

 

 

3,572,487

 

 

 

3,567,260

 

 

 

3,405,463

 

 

 

3,518,105

 

 

 

3,464,699

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted

 

$

1.12

 

 

$

1.35

 

 

$

1.55

 

 

$

3.92

 

 

$

4.33

 

Cash dividends per share

 

 

0.30

 

 

 

0.30

 

 

 

0.27

 

 

 

0.90

 

 

 

0.81

 

Book value per share (period-end)

 

 

40.64

 

 

 

41.27

 

 

 

37.12

 

 

 

40.64

 

 

 

37.12

 

Tangible book value per share (period-end)

 

 

30.16

 

 

 

30.76

 

 

 

26.44

 

 

 

30.16

 

 

 

26.44

 

Weighted average number of shares - diluted

 

 

86,437

 

 

 

86,370

 

 

 

86,020

 

 

 

86,368

 

 

 

86,439

 

Period-end number of shares

 

 

86,148

 

 

 

86,123

 

 

 

85,686

 

 

 

86,148

 

 

 

85,686

 

Market data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High sales price

 

$

45.15

 

 

$

43.73

 

 

$

52.65

 

 

$

54.38

 

 

$

59.82

 

Low sales price

 

 

35.34

 

 

 

31.02

 

 

 

41.62

 

 

 

31.02

 

 

 

41.62

 

Period-end closing price

 

 

36.99

 

 

 

38.38

 

 

 

45.81

 

 

 

36.99

 

 

 

45.81

 

Trading volume

 

 

34,506

 

 

 

38,854

 

 

 

24,976

 

 

 

112,391

 

 

 

81,474

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.09

%

 

 

1.30

%

 

 

1.56

%

 

 

1.28

%

 

 

1.44

%

Return on average common equity

 

 

10.85

%

 

 

13.24

%

 

 

15.77

%

 

 

13.00

%

 

 

14.68

%

Return on average tangible common equity

 

 

14.53

%

 

 

17.76

%

 

 

21.58

%

 

 

17.51

%

 

 

19.98

%

Tangible common equity ratio (c)

 

 

7.34

%

 

 

7.50

%

 

 

6.73

%

 

 

7.34

%

 

 

6.73

%

Net interest margin (TE)

 

 

3.27

%

 

 

3.30

%

 

 

3.54

%

 

 

3.37

%

 

 

3.13

%

Noninterest income as a percentage of total revenue (TE)

 

 

24.01

%

 

 

23.21

%

 

 

23.17

%

 

 

22.98

%

 

 

25.03

%

Efficiency ratio (d)

 

 

56.38

%

 

 

55.33

%

 

 

51.62

%

 

 

55.14

%

 

 

54.08

%

Average loan/deposit ratio

 

 

80.08

%

 

 

80.53

%

 

 

75.87

%

 

 

80.27

%

 

 

72.81

%

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

 

 

1.28

%

 

 

1.32

%

 

 

1.36

%

 

 

1.28

%

 

 

1.36

%

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

 

 

1.40

%

 

 

1.45

%

 

 

1.50

%

 

 

1.40

%

 

 

1.50

%

Annualized net charge-offs to average loans

 

 

0.64

%

 

 

0.06

%

 

 

0.02

%

 

 

0.27

%

 

 

0.01

%

Allowance for loan losses as a % of nonaccrual loans

 

 

507.68

%

 

 

402.07

%

 

 

769.00

%

 

 

507.68

%

 

 

769.00

%

FTE headcount

 

 

3,681

 

 

 

3,705

 

 

 

3,607

 

 

 

3,681

 

 

 

3,607

 

(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 nonoperating items.

 

(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)

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

269,234

 

 

$

273,911

 

 

$

284,994

 

 

$

295,501

 

 

$

280,307

 

Net interest income (TE) (a)

 

 

272,086

 

 

 

276,748

 

 

 

287,578

 

 

 

298,116

 

 

 

282,910

 

Provision for credit losses

 

 

28,498

 

 

 

7,633

 

 

 

6,020

 

 

 

2,487

 

 

 

1,402

 

Noninterest income

 

 

85,974

 

 

 

83,225

 

 

 

80,330

 

 

 

77,064

 

 

 

85,337

 

Noninterest expense

 

 

204,675

 

 

 

202,138

 

 

 

200,884

 

 

 

190,154

 

 

 

193,502

 

Income tax expense

 

 

24,297

 

 

 

29,571

 

 

 

31,953

 

 

 

36,137

 

 

 

35,351

 

Net income

 

$

97,738

 

 

$

117,794

 

 

$

126,467

 

 

$

143,787

 

 

$

135,389

 

PERIOD-END BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,983,679

 

 

$

23,789,886

 

 

$

23,404,523

 

 

$

23,114,046

 

 

$

22,585,585

 

Securities

 

 

7,916,101

 

 

 

8,195,679

 

 

 

8,390,684

 

 

 

8,408,536

 

 

 

8,333,191

 

Earning assets

 

 

32,733,591

 

 

 

32,715,630

 

 

 

34,106,792

 

 

 

31,873,027

 

 

 

31,213,449

 

Total assets

 

 

36,298,301

 

 

 

36,210,148

 

 

 

37,547,083

 

 

 

35,183,825

 

 

 

34,567,242

 

Noninterest-bearing deposits

 

 

11,626,371

 

 

 

12,171,817

 

 

 

12,860,027

 

 

 

13,645,113

 

 

 

14,290,817

 

Total deposits

 

 

30,320,337

 

 

 

30,043,501

 

 

 

29,613,070

 

 

 

29,070,349

 

 

 

28,951,274

 

Common stockholders' equity

 

 

3,501,003

 

 

 

3,554,476

 

 

 

3,531,232

 

 

 

3,342,628

 

 

 

3,180,439

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,830,724

 

 

$

23,654,994

 

 

$

23,086,529

 

 

$

22,723,248

 

 

$

22,138,709

 

Securities (b)

 

 

8,888,477

 

 

 

9,007,821

 

 

 

9,137,034

 

 

 

9,200,511

 

 

 

9,177,460

 

Earning assets

 

 

33,137,565

 

 

 

33,619,829

 

 

 

32,753,781

 

 

 

32,244,681

 

 

 

31,783,801

 

Total assets

 

 

35,626,927

 

 

 

36,205,396

 

 

 

35,159,050

 

 

 

34,498,915

 

 

 

34,377,773

 

Noninterest-bearing deposits

 

 

11,453,236

 

 

 

12,153,453

 

 

 

12,963,133

 

 

 

13,854,625

 

 

 

14,323,646

 

Total deposits

 

 

29,757,180

 

 

 

29,372,899

 

 

 

28,792,851

 

 

 

28,816,338

 

 

 

29,180,626

 

Common stockholders' equity

 

 

3,572,487

 

 

 

3,567,260

 

 

 

3,412,813

 

 

 

3,228,667

 

 

 

3,405,463

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted

 

$

1.12

 

 

$

1.35

 

 

$

1.45

 

 

$

1.65

 

 

$

1.55

 

Cash dividends per share

 

 

0.30

 

 

 

0.30

 

 

 

0.30

 

 

 

0.27

 

 

 

0.27

 

Book value per share (period-end)

 

 

40.64

 

 

 

41.27

 

 

 

41.03

 

 

 

38.89

 

 

 

37.12

 

Tangible book value per share (period-end)

 

 

30.16

 

 

 

30.76

 

 

 

30.47

 

 

 

28.29

 

 

 

26.44

 

Weighted average number of shares - diluted

 

 

86,437

 

 

 

86,370

 

 

 

86,282

 

 

 

86,249

 

 

 

86,020

 

Period-end number of shares

 

 

86,148

 

 

 

86,123

 

 

 

86,066

 

 

 

85,941

 

 

 

85,686

 

Market data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High sales price

 

$

45.15

 

 

$

43.73

 

 

$

54.38

 

 

$

57.00

 

 

$

52.65

 

Low sales price

 

 

35.34

 

 

 

31.02

 

 

 

34.42

 

 

 

45.64

 

 

 

41.62

 

Period-end closing price

 

 

36.99

 

 

 

38.38

 

 

 

36.40

 

 

 

48.39

 

 

 

45.81

 

Trading volume

 

 

34,506

 

 

 

38,854

 

 

 

39,030

 

 

 

29,996

 

 

 

24,976

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.09

%

 

 

1.30

%

 

 

1.46

%

 

 

1.65

%

 

 

1.56

%

Return on average common equity

 

 

10.85

%

 

 

13.24

%

 

 

15.03

%

 

 

17.67

%

 

 

15.77

%

Return on average tangible common equity

 

 

14.53

%

 

 

17.76

%

 

 

20.49

%

 

 

24.64

%

 

 

21.58

%

Tangible common equity ratio (c)

 

 

7.34

%

 

 

7.50

%

 

 

7.16

%

 

 

7.09

%

 

 

6.73

%

Net interest margin (TE)

 

 

3.27

%

 

 

3.30

%

 

 

3.55

%

 

 

3.68

%

 

 

3.54

%

Noninterest income as a percentage of total revenue (TE)

 

 

24.01

%

 

 

23.21

%

 

 

21.83

%

 

 

20.54

%

 

 

23.17

%

Efficiency ratio (d)

 

 

56.38

%

 

 

55.33

%

 

 

53.76

%

 

 

49.81

%

 

 

51.62

%

Average loan/deposit ratio

 

 

80.08

%

 

 

80.53

%

 

 

80.18

%

 

 

78.86

%

 

 

75.87

%

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

 

 

1.28

%

 

 

1.32

%

 

 

1.32

%

 

 

1.33

%

 

 

1.36

%

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

 

 

1.40

%

 

 

1.45

%

 

 

1.46

%

 

 

1.48

%

 

 

1.50

%

Annualized net charge-offs to average loans

 

 

0.64

%

 

 

0.06

%

 

 

0.10

%

 

 

0.02

%

 

 

0.02

%

Allowance for loan losses as a % of nonaccrual loans

 

 

507.68

%

 

 

402.07

%

 

 

569.31

%

 

 

789.38

%

 

 

769.00

%

FTE headcount

 

 

3,681

 

 

 

3,705

 

 

 

3,679

 

 

 

3,627

 

 

 

3,607

 

(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 nonoperating items.

 

(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

 

 

Nine Months Ended

 

(dollars in thousands, except per share data)

 

9/30/2023

 

 

6/30/2023

 

 

9/30/2022

 

 

9/30/2023

 

 

9/30/2022

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

415,827

 

 

$

405,273

 

 

$

299,737

 

 

$

1,193,703

 

 

$

791,387

 

Interest income (TE) (f)

 

 

418,679

 

 

 

408,110

 

 

 

302,340

 

 

 

1,201,976

 

 

 

799,120

 

Interest expense

 

 

146,593

 

 

 

131,362

 

 

 

19,430

 

 

 

365,564

 

 

 

36,885

 

Net interest income (TE)

 

 

272,086

 

 

 

276,748

 

 

 

282,910

 

 

 

836,412

 

 

 

762,235

 

Provision for credit losses

 

 

28,498

 

 

 

7,633

 

 

 

1,402

 

 

 

42,151

 

 

 

(30,886

)

Noninterest income

 

 

85,974

 

 

 

83,225

 

 

 

85,337

 

 

 

249,529

 

 

 

254,422

 

Noninterest expense

 

 

204,675

 

 

 

202,138

 

 

 

193,502

 

 

 

607,697

 

 

 

560,538

 

Income before income taxes

 

 

122,035

 

 

 

147,365

 

 

 

170,740

 

 

 

427,820

 

 

 

479,272

 

Income tax expense

 

 

24,297

 

 

 

29,571

 

 

 

35,351

 

 

 

85,821

 

 

 

98,970

 

Net income

 

$

97,738

 

 

$

117,794

 

 

$

135,389

 

 

$

341,999

 

 

$

380,302

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

22,264

 

 

$

21,491

 

 

$

23,272

 

 

$

64,377

 

 

$

65,441

 

Trust fees

 

 

16,593

 

 

 

17,393

 

 

 

16,048

 

 

 

50,720

 

 

 

48,636

 

Bank card and ATM fees

 

 

20,555

 

 

 

20,982

 

 

 

21,412

 

 

 

62,258

 

 

 

63,678

 

Investment and annuity fees and insurance commissions

 

 

8,520

 

 

 

8,241

 

 

 

6,492

 

 

 

25,628

 

 

 

21,920

 

Secondary mortgage market operations

 

 

2,609

 

 

 

2,299

 

 

 

3,284

 

 

 

7,076

 

 

 

10,020

 

Other income

 

 

15,433

 

 

 

12,819

 

 

 

14,829

 

 

 

39,470

 

 

 

44,727

 

Total noninterest income

 

$

85,974

 

 

$

83,225

 

 

$

85,337

 

 

$

249,529

 

 

$

254,422

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

$

116,266

 

 

$

114,864

 

 

$

118,922

 

 

$

346,453

 

 

$

341,488

 

Net occupancy and equipment expense

 

 

18,210

 

 

 

17,750

 

 

 

16,938

 

 

 

52,902

 

 

 

50,413

 

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

 

 

(26

)

 

 

(282

)

 

 

(1,782

)

 

 

(153

)

 

 

(3,634

)

Other expense

 

 

67,412

 

 

 

66,849

 

 

 

55,996

 

 

 

199,611

 

 

 

161,509

 

Amortization of intangibles

 

 

2,813

 

 

 

2,957

 

 

 

3,428

 

 

 

8,884

 

 

 

10,762

 

Total noninterest expense

 

$

204,675

 

 

$

202,138

 

 

$

193,502

 

 

$

607,697

 

 

$

560,538

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.12

 

 

$

1.35

 

 

$

1.56

 

 

$

3.93

 

 

$

4.35

 

Diluted

 

 

1.12

 

 

 

1.35

 

 

 

1.55

 

 

 

3.92

 

 

 

4.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

415,827

 

 

$

405,273

 

 

$

372,603

 

 

$

345,676

 

 

$

299,737

 

Interest income (TE) (f)

 

 

418,679

 

 

 

408,110

 

 

 

375,187

 

 

 

348,291

 

 

 

302,340

 

Interest expense

 

 

146,593

 

 

 

131,362

 

 

 

87,609

 

 

 

50,175

 

 

 

19,430

 

Net interest income (TE)

 

 

272,086

 

 

 

276,748

 

 

 

287,578

 

 

 

298,116

 

 

 

282,910

 

Provision for credit losses

 

 

28,498

 

 

 

7,633

 

 

 

6,020

 

 

 

2,487

 

 

 

1,402

 

Noninterest income

 

 

85,974

 

 

 

83,225

 

 

 

80,330

 

 

 

77,064

 

 

 

85,337

 

Noninterest expense

 

 

204,675

 

 

 

202,138

 

 

 

200,884

 

 

 

190,154

 

 

 

193,502

 

Income before income taxes

 

 

122,035

 

 

 

147,365

 

 

 

158,420

 

 

 

179,924

 

 

 

170,740

 

Income tax expense

 

 

24,297

 

 

 

29,571

 

 

 

31,953

 

 

 

36,137

 

 

 

35,351

 

Net income

 

$

97,738

 

 

$

117,794

 

 

$

126,467

 

 

$

143,787

 

 

$

135,389

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

22,264

 

 

$

21,491

 

 

$

20,622

 

 

$

22,222

 

 

$

23,272

 

Trust fees

 

 

16,593

 

 

 

17,393

 

 

 

16,734

 

 

 

16,496

 

 

 

16,048

 

Bank card and ATM fees

 

 

20,555

 

 

 

20,982

 

 

 

20,721

 

 

 

20,913

 

 

 

21,412

 

Investment and annuity fees and insurance commissions

 

 

8,520

 

 

 

8,241

 

 

 

8,867

 

 

 

6,832

 

 

 

6,492

 

Secondary mortgage market operations

 

 

2,609

 

 

 

2,299

 

 

 

2,168

 

 

 

1,504

 

 

 

3,284

 

Other income

 

 

15,433

 

 

 

12,819

 

 

 

11,218

 

 

 

9,097

 

 

 

14,829

 

Total noninterest income

 

$

85,974

 

 

$

83,225

 

 

$

80,330

 

 

$

77,064

 

 

$

85,337

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

$

116,266

 

 

$

114,864

 

 

$

115,323

 

 

$

119,147

 

 

$

118,922

 

Net occupancy and equipment expense

 

 

18,210

 

 

 

17,750

 

 

 

16,942

 

 

 

16,927

 

 

 

16,938

 

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

 

 

(26

)

 

 

(282

)

 

 

155

 

 

 

(773

)

 

 

(1,782

)

Other expense

 

 

67,412

 

 

 

66,849

 

 

 

65,350

 

 

 

51,582

 

 

 

55,996

 

Amortization of intangibles

 

 

2,813

 

 

 

2,957

 

 

 

3,114

 

 

 

3,271

 

 

 

3,428

 

Total noninterest expense

 

$

204,675

 

 

$

202,138

 

 

$

200,884

 

 

$

190,154

 

 

$

193,502

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.12

 

 

$

1.35

 

 

$

1.45

 

 

$

1.65

 

 

$

1.56

 

Diluted

 

 

1.12

 

 

 

1.35

 

 

 

1.45

 

 

 

1.65

 

 

 

1.55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

10,075,585

 

 

$

10,113,932

 

 

$

10,013,482

 

 

$

10,146,453

 

 

$

9,905,427

 

Commercial real estate - owner occupied loans

 

 

3,081,327

 

 

 

3,058,829

 

 

 

3,050,748

 

 

 

3,033,058

 

 

 

3,033,133

 

Total commercial and industrial loans

 

 

13,156,912

 

 

 

13,172,761

 

 

 

13,064,230

 

 

 

13,179,511

 

 

 

12,938,560

 

Commercial real estate - income producing loans

 

 

4,027,553

 

 

 

3,762,428

 

 

 

3,758,455

 

 

 

3,560,991

 

 

 

3,686,540

 

Construction and land development loans

 

 

1,614,846

 

 

 

1,768,252

 

 

 

1,726,916

 

 

 

1,703,592

 

 

 

1,541,257

 

Residential mortgage loans

 

 

3,721,106

 

 

 

3,581,514

 

 

 

3,329,793

 

 

 

3,092,605

 

 

 

2,843,723

 

Consumer loans

 

 

1,463,262

 

 

 

1,504,931

 

 

 

1,525,129

 

 

 

1,577,347

 

 

 

1,575,505

 

Total loans

 

 

23,983,679

 

 

 

23,789,886

 

 

 

23,404,523

 

 

 

23,114,046

 

 

 

22,585,585

 

Loans held for sale

 

 

15,862

 

 

 

55,902

 

 

 

23,436

 

 

 

26,385

 

 

 

33,008

 

Securities

 

 

7,916,101

 

 

 

8,195,679

 

 

 

8,390,684

 

 

 

8,408,536

 

 

 

8,333,191

 

Short-term investments

 

 

817,949

 

 

 

674,163

 

 

 

2,288,149

 

 

 

324,060

 

 

 

261,665

 

Earning assets

 

 

32,733,591

 

 

 

32,715,630

 

 

 

34,106,792

 

 

 

31,873,027

 

 

 

31,213,449

 

Allowance for loan losses

 

 

(306,291

)

 

 

(314,496

)

 

 

(309,385

)

 

 

(307,789

)

 

 

(306,116

)

Goodwill and other intangible assets

 

 

902,762

 

 

 

905,575

 

 

 

908,533

 

 

 

911,646

 

 

 

914,917

 

Other assets

 

 

2,968,239

 

 

 

2,903,439

 

 

 

2,841,143

 

 

 

2,706,941

 

 

 

2,744,992

 

Total assets

 

$

36,298,301

 

 

$

36,210,148

 

 

$

37,547,083

 

 

$

35,183,825

 

 

$

34,567,242

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

11,626,371

 

 

$

12,171,817

 

 

$

12,860,027

 

 

$

13,645,113

 

 

$

14,290,817

 

Interest-bearing transaction and savings deposits

 

 

10,668,241

 

 

 

10,438,820

 

 

 

10,660,420

 

 

 

10,726,686

 

 

 

10,902,399

 

Interest-bearing public fund deposits

 

 

2,853,236

 

 

 

2,925,432

 

 

 

3,086,209

 

 

 

3,244,225

 

 

 

2,796,363

 

Time deposits

 

 

5,172,489

 

 

 

4,507,432

 

 

 

3,006,414

 

 

 

1,454,325

 

 

 

961,695

 

Total interest-bearing deposits

 

 

18,693,966

 

 

 

17,871,684

 

 

 

16,753,043

 

 

 

15,425,236

 

 

 

14,660,457

 

Total deposits

 

 

30,320,337

 

 

 

30,043,501

 

 

 

29,613,070

 

 

 

29,070,349

 

 

 

28,951,274

 

Short-term borrowings

 

 

1,425,928

 

 

 

1,629,538

 

 

 

3,519,497

 

 

 

1,871,271

 

 

 

1,542,981

 

Long-term debt

 

 

236,279

 

 

 

236,241

 

 

 

242,115

 

 

 

242,077

 

 

 

236,410

 

Other liabilities

 

 

814,754

 

 

 

746,392

 

 

 

641,169

 

 

 

657,500

 

 

 

656,138

 

Total liabilities

 

 

32,797,298

 

 

 

32,655,672

 

 

 

34,015,851

 

 

 

31,841,197

 

 

 

31,386,803

 

COMMON STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock net of treasury and capital surplus

 

 

2,044,611

 

 

 

2,037,258

 

 

 

2,030,136

 

 

 

2,026,397

 

 

 

2,024,960

 

Retained earnings

 

 

2,351,386

 

 

 

2,280,004

 

 

 

2,188,561

 

 

 

2,088,413

 

 

 

1,968,260

 

Accumulated other comprehensive (loss)

 

 

(894,994

)

 

 

(762,786

)

 

 

(687,465

)

 

 

(772,182

)

 

 

(812,781

)

Total common stockholders' equity

 

 

3,501,003

 

 

 

3,554,476

 

 

 

3,531,232

 

 

 

3,342,628

 

 

 

3,180,439

 

Total liabilities & stockholders' equity

 

$

36,298,301

 

 

$

36,210,148

 

 

$

37,547,083

 

 

$

35,183,825

 

 

$

34,567,242

 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

2,598,241

 

 

$

2,648,901

 

 

$

2,622,699

 

 

$

2,430,982

 

 

$

2,265,522

 

Tier 1 capital (g)

 

 

3,552,613

 

 

 

3,471,066

 

 

 

3,369,351

 

 

 

3,279,419

 

 

 

3,154,419

 

Common equity as a percentage of total assets

 

 

9.65

%

 

 

9.82

%

 

 

9.40

%

 

 

9.50

%

 

 

9.20

%

Tangible common equity ratio

 

 

7.34

%

 

 

7.50

%

 

 

7.16

%

 

 

7.09

%

 

 

6.73

%

Leverage (Tier 1) ratio (g)

 

 

10.01

%

 

 

9.64

%

 

 

9.63

%

 

 

9.53

%

 

 

9.27

%

Common equity tier 1 (CET1) ratio (g)

 

 

12.04

%

 

 

11.83

%

 

 

11.60

%

 

 

11.41

%

 

 

11.10

%

Tier 1 risk-based capital ratio (g)

 

 

12.04

%

 

 

11.83

%

 

 

11.60

%

 

 

11.41

%

 

 

11.10

%

Total risk-based capital ratio (g)

 

 

13.62

%

 

 

13.44

%

 

 

13.21

%

 

 

12.97

%

 

 

12.67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

Nine Months Ended

 

(in thousands)

 

9/30/2023

 

 

6/30/2023

 

 

9/30/2022

 

 

9/30/2023

 

 

9/30/2022

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

10,057,941

 

 

$

9,955,499

 

 

$

9,738,424

 

 

$

9,984,957

 

 

$

9,652,463

 

Commercial real estate - owner occupied loans

 

 

3,060,659

 

 

 

3,099,326

 

 

 

2,993,477

 

 

 

3,068,259

 

 

 

2,925,881

 

Total commercial and industrial loans

 

 

13,118,600

 

 

 

13,054,825

 

 

 

12,731,901

 

 

 

13,053,216

 

 

 

12,578,344

 

Commercial real estate - income producing loans

 

 

3,822,711

 

 

 

3,860,409

 

 

 

3,634,667

 

 

 

3,756,906

 

 

 

3,579,735

 

Construction and land development loans

 

 

1,737,658

 

 

 

1,755,580

 

 

 

1,489,369

 

 

 

1,748,508

 

 

 

1,357,047

 

Residential mortgage loans

 

 

3,669,922

 

 

 

3,469,030

 

 

 

2,713,383

 

 

 

3,452,799

 

 

 

2,564,111

 

Consumer loans

 

 

1,481,833

 

 

 

1,515,150

 

 

 

1,569,389

 

 

 

1,515,379

 

 

 

1,563,912

 

Total loans

 

 

23,830,724

 

 

 

23,654,994

 

 

 

22,138,709

 

 

 

23,526,808

 

 

 

21,643,149

 

Loans held for sale

 

 

43,390

 

 

 

25,152

 

 

 

35,217

 

 

 

30,563

 

 

 

49,089

 

Securities (h)

 

 

8,888,477

 

 

 

9,007,821

 

 

 

9,177,460

 

 

 

9,010,201

 

 

 

8,949,988

 

Short-term investments

 

 

374,974

 

 

 

931,862

 

 

 

432,415

 

 

 

604,226

 

 

 

1,941,426

 

Earning assets

 

 

33,137,565

 

 

 

33,619,829

 

 

 

31,783,801

 

 

 

33,171,798

 

 

 

32,583,652

 

Allowance for loan losses

 

 

(315,371

)

 

 

(311,328

)

 

 

(308,407

)

 

 

(312,081

)

 

 

(320,771

)

Goodwill and other intangible assets

 

 

904,127

 

 

 

907,004

 

 

 

916,582

 

 

 

907,037

 

 

 

920,112

 

Other assets

 

 

1,900,606

 

 

 

1,989,891

 

 

 

1,985,797

 

 

 

1,898,751

 

 

 

2,064,992

 

Total assets

 

$

35,626,927

 

 

$

36,205,396

 

 

$

34,377,773

 

 

$

35,665,505

 

 

$

35,247,985

 

LIABILITIES AND COMMON STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

11,453,236

 

 

$

12,153,453

 

 

$

14,323,646

 

 

$

12,184,410

 

 

$

14,447,445

 

Interest-bearing transaction and savings deposits

 

 

10,583,224

 

 

 

10,478,436

 

 

 

11,164,395

 

 

 

10,570,452

 

 

 

11,332,638

 

Interest-bearing public fund deposits

 

 

2,851,965

 

 

 

2,981,701

 

 

 

2,738,196

 

 

 

2,996,975

 

 

 

2,931,393

 

Time deposits

 

 

4,868,755

 

 

 

3,759,309

 

 

 

954,389

 

 

 

3,559,339

 

 

 

1,015,533

 

Total interest-bearing deposits

 

 

18,303,944

 

 

 

17,219,446

 

 

 

14,856,980

 

 

 

17,126,766

 

 

 

15,279,564

 

Total deposits

 

 

29,757,180

 

 

 

29,372,899

 

 

 

29,180,626

 

 

 

29,311,176

 

 

 

29,727,009

 

Short-term borrowings

 

 

1,311,049

 

 

 

2,386,589

 

 

 

950,570

 

 

 

1,929,204

 

 

 

1,285,511

 

Long-term debt

 

 

236,260

 

 

 

242,004

 

 

 

238,372

 

 

 

240,099

 

 

 

240,161

 

Other liabilities

 

 

749,951

 

 

 

636,644

 

 

 

602,742

 

 

 

666,921

 

 

 

530,605

 

Common stockholders' equity

 

 

3,572,487

 

 

 

3,567,260

 

 

 

3,405,463

 

 

 

3,518,105

 

 

 

3,464,699

 

Total liabilities & stockholders' equity

 

$

35,626,927

 

 

$

36,205,396

 

 

$

34,377,773

 

 

$

35,665,505

 

 

$

35,247,985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

9/30/2023

 

 

6/30/2023

 

 

9/30/2022

 

(dollars in millions)

 

Average
 Balance

 

 

Interest

 

 

Rate

 

 

Average
  Balance

 

 

Interest

 

 

Rate

 

 

Average
 Balance

 

 

Interest

 

 

Rate

 

AVERAGE EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans (TE) (i)

 

$

18,679.0

 

 

$

294.1

 

 

 

6.25

%

 

$

18,670.8

 

 

$

280.9

 

 

 

6.03

%

 

$

17,855.9

 

 

$

203.0

 

 

 

4.51

%

Residential mortgage loans

 

 

3,669.9

 

 

 

33.7

 

 

 

3.67

%

 

 

3,469.0

 

 

 

31.4

 

 

 

3.62

%

 

 

2,713.4

 

 

 

22.7

 

 

 

3.34

%

Consumer loans

 

 

1,481.8

 

 

 

32.2

 

 

 

8.61

%

 

 

1,515.2

 

 

 

30.7

 

 

 

8.14

%

 

 

1,569.4

 

 

 

23.2

 

 

 

5.87

%

Loan fees & late charges

 

 

—

 

 

 

0.3

 

 

 

0.00

%

 

 

—

 

 

 

0.0

 

 

 

0.00

%

 

 

—

 

 

 

1.3

 

 

 

0.00

%

Total loans (TE) (j) (k)

 

 

23,830.7

 

 

 

360.3

 

 

 

6.01

%

 

 

23,655.0

 

 

 

343.0

 

 

 

5.81

%

 

 

22,138.7

 

 

 

250.2

 

 

 

4.49

%

Loans held for sale

 

 

43.4

 

 

 

0.8

 

 

 

7.30

%

 

 

25.1

 

 

 

0.4

 

 

 

5.83

%

 

 

35.2

 

 

 

0.4

 

 

 

4.48

%

US Treasury and government agency securities

 

 

535.3

 

 

 

3.4

 

 

 

2.52

%

 

 

537.4

 

 

 

3.4

 

 

 

2.50

%

 

 

420.3

 

 

 

2.0

 

 

 

1.94

%

CMOs and mortgage backed securities

 

 

7,450.5

 

 

 

42.7

 

 

 

2.29

%

 

 

7,552.0

 

 

 

43.2

 

 

 

2.29

%

 

 

7,822.4

 

 

 

40.9

 

 

 

2.09

%

Municipals (TE)

 

 

879.2

 

 

 

6.5

 

 

 

2.98

%

 

 

894.9

 

 

 

6.7

 

 

 

3.00

%

 

 

911.5

 

 

 

6.8

 

 

 

2.97

%

Other securities

 

 

23.5

 

 

 

0.2

 

 

 

3.51

%

 

 

23.5

 

 

 

0.2

 

 

 

3.51

%

 

 

23.3

 

 

 

0.2

 

 

 

3.54

%

Total securities (TE) (l)

 

 

8,888.5

 

 

 

52.8

 

 

 

2.37

%

 

 

9,007.8

 

 

 

53.5

 

 

 

2.38

%

 

 

9,177.5

 

 

 

49.9

 

 

 

2.17

%

Total short-term investments

 

 

375.0

 

 

 

4.8

 

 

 

5.08

%

 

 

931.9

 

 

 

11.2

 

 

 

4.83

%

 

 

432.4

 

 

 

1.8

 

 

 

1.69

%

Average earning assets yield (TE)

 

$

33,137.6

 

 

$

418.7

 

 

 

5.02

%

 

$

33,619.8

 

 

$

408.1

 

 

 

4.87

%

 

$

31,783.8

 

 

$

302.3

 

 

 

3.78

%

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction and savings deposits

 

$

10,583.2

 

 

$

51.4

 

 

 

1.93

%

 

$

10,478.4

 

 

$

41.3

 

 

 

1.58

%

 

$

11,164.4

 

 

$

4.3

 

 

 

0.15

%

Time deposits

 

 

4,868.7

 

 

 

53.8

 

 

 

4.38

%

 

 

3,759.3

 

 

 

36.9

 

 

 

3.93

%

 

 

954.4

 

 

 

0.4

 

 

 

0.18

%

Public funds

 

 

2,852.0

 

 

 

25.6

 

 

 

3.57

%

 

 

2,981.7

 

 

 

24.3

 

 

 

3.27

%

 

 

2,738.2

 

 

 

8.9

 

 

 

1.28

%

Total interest-bearing deposits

 

 

18,303.9

 

 

 

130.8

 

 

 

2.84

%

 

 

17,219.4

 

 

 

102.5

 

 

 

2.39

%

 

 

14,857.0

 

 

 

13.6

 

 

 

0.36

%

Short-term borrowings

 

 

1,311.0

 

 

 

12.7

 

 

 

3.85

%

 

 

2,386.6

 

 

 

25.8

 

 

 

4.32

%

 

 

950.6

 

 

 

2.7

 

 

 

1.15

%

Long-term debt

 

 

236.3

 

 

 

3.1

 

 

 

5.19

%

 

 

242.0

 

 

 

3.1

 

 

 

5.11

%

 

 

238.4

 

 

 

3.1

 

 

 

5.20

%

Total borrowings

 

 

1,547.3

 

 

 

15.8

 

 

 

4.06

%

 

 

2,628.6

 

 

 

28.9

 

 

 

4.40

%

 

 

1,189.0

 

 

 

5.8

 

 

 

1.96

%

Total interest-bearing liabilities cost

 

 

19,851.2

 

 

 

146.6

 

 

 

2.93

%

 

 

19,848.0

 

 

 

131.4

 

 

 

2.65

%

 

 

16,046.0

 

 

 

19.4

 

 

 

0.48

%

Net interest-free funding sources

 

 

13,286.4

 

 

 

 

 

 

 

 

 

13,771.8

 

 

 

 

 

 

 

 

 

15,737.8

 

 

 

 

 

 

 

Total cost of funds

 

 

33,137.6

 

 

 

146.6

 

 

 

1.76

%

 

 

33,619.8

 

 

 

131.4

 

 

 

1.57

%

 

 

31,783.8

 

 

 

19.4

 

 

 

0.24

%

Net Interest Spread (TE)

 

 

 

 

$

272.1

 

 

 

2.09

%

 

 

 

 

$

276.7

 

 

 

2.21

%

 

 

 

 

$

282.9

 

 

 

3.30

%

Net Interest Margin (TE)

 

$

33,137.6

 

 

$

272.1

 

 

 

3.27

%

 

$

33,619.8

 

 

$

276.7

 

 

 

3.30

%

 

$

31,783.8

 

 

$

282.9

 

 

 

3.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 $0.6 million, $0.7 million and $1.2 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

9/30/2023

 

 

9/30/2022

 

(dollars in millions)

 

Average
 Balance

 

 

Interest

 

 

Rate

 

 

Average
 Balance

 

 

Interest

 

 

Rate

 

AVERAGE EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans (TE) (i)

 

$

18,558.6

 

 

$

834.2

 

 

 

6.01

%

 

$

17,515.1

 

 

$

519.3

 

 

 

3.96

%

Residential mortgage loans

 

 

3,452.8

 

 

 

93.1

 

 

 

3.60

%

 

 

2,564.1

 

 

 

64.8

 

 

 

3.37

%

Consumer loans

 

 

1,515.4

 

 

 

92.1

 

 

 

8.12

%

 

 

1,563.9

 

 

 

61.2

 

 

 

5.23

%

Loan fees & late charges

 

 

—

 

 

 

(0.1

)

 

 

0.00

%

 

 

—

 

 

 

7.6

 

 

 

0.00

%

Total loans (TE) (j) (k)

 

 

23,526.8

 

 

 

1,019.3

 

 

 

5.79

%

 

 

21,643.1

 

 

 

652.9

 

 

 

4.03

%

Loans held for sale

 

 

30.6

 

 

 

1.4

 

 

 

6.38

%

 

 

49.1

 

 

 

1.5

 

 

 

4.17

%

US Treasury and government agency securities

 

 

538.0

 

 

 

10.1

 

 

 

2.50

%

 

 

402.0

 

 

 

5.4

 

 

 

1.79

%

CMOs and mortgage backed securities

 

 

7,556.0

 

 

 

129.2

 

 

 

2.28

%

 

 

7,612.7

 

 

 

111.7

 

 

 

1.96

%

Municipals (TE)

 

 

892.7

 

 

 

20.0

 

 

 

2.98

%

 

 

913.5

 

 

 

20.2

 

 

 

2.96

%

Other securities

 

 

23.5

 

 

 

0.6

 

 

 

3.51

%

 

 

21.8

 

 

 

0.5

 

 

 

3.40

%

Total securities (TE) (l)

 

 

9,010.2

 

 

 

159.9

 

 

 

2.37

%

 

 

8,950.0

 

 

 

137.8

 

 

 

2.05

%

Total short-term investments

 

 

604.2

 

 

 

21.4

 

 

 

4.73

%

 

 

1,941.4

 

 

 

6.9

 

 

 

0.47

%

Average earning assets yield (TE)

 

$

33,171.8

 

 

$

1,202.0

 

 

 

4.84

%

 

$

32,583.6

 

 

$

799.1

 

 

 

3.28

%

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction and savings deposits

 

$

10,570.5

 

 

$

120.0

 

 

 

1.52

%

 

$

11,332.6

 

 

$

6.7

 

 

 

0.08

%

Time deposits

 

 

3,559.3

 

 

 

104.1

 

 

 

3.91

%

 

 

1,015.5

 

 

 

1.5

 

 

 

0.19

%

Public funds

 

 

2,997.0

 

 

 

73.7

 

 

 

3.29

%

 

 

2,931.4

 

 

 

14.2

 

 

 

0.65

%

Total interest-bearing deposits

 

 

17,126.8

 

 

 

297.8

 

 

 

2.32

%

 

 

15,279.5

 

 

 

22.4

 

 

 

0.20

%

Short-term borrowings

 

 

1,929.2

 

 

 

58.5

 

 

 

4.06

%

 

 

1,285.5

 

 

 

5.1

 

 

 

0.53

%

Long-term debt

 

 

240.1

 

 

 

9.3

 

 

 

5.14

%

 

 

240.2

 

 

 

9.4

 

 

 

5.19

%

Total borrowings

 

 

2,169.3

 

 

 

67.8

 

 

 

4.18

%

 

 

1,525.7

 

 

 

14.5

 

 

 

1.27

%

Total interest-bearing liabilities cost

 

 

19,296.1

 

 

 

365.6

 

 

 

2.53

%

 

 

16,805.2

 

 

 

36.9

 

 

 

0.29

%

Net interest-free funding sources

 

 

13,875.7

 

 

 

 

 

 

 

 

 

15,778.4

 

 

 

 

 

 

 

Total cost of funds

 

 

33,171.8

 

 

 

365.6

 

 

 

1.47

%

 

 

32,583.6

 

 

 

36.9

 

 

 

0.15

%

Net Interest Spread (TE)

 

 

 

 

$

836.4

 

 

 

2.31

%

 

 

 

 

$

762.2

 

 

 

2.99

%

Net Interest Margin (TE)

 

$

33,171.8

 

 

$

836.4

 

 

 

3.37

%

 

$

32,583.6

 

 

$

762.2

 

 

 

3.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 $2.1 million and $3.9 million for the nine months ended September 30, 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

 

 

Nine Months Ended

 

(dollars in thousands)

 

9/30/2023

 

 

6/30/2023

 

 

9/30/2022

 

 

9/30/2023

 

 

9/30/2022

 

Nonaccrual loans (m)

 

$

60,331

 

 

$

78,220

 

 

$

39,807

 

 

$

60,331

 

 

$

39,807

 

ORE and foreclosed assets

 

 

4,527

 

 

 

2,174

 

 

 

2,085

 

 

 

4,527

 

 

 

2,085

 

Total nonaccrual loans + ORE and foreclosed assets

 

$

64,858

 

 

$

80,394

 

 

$

41,892

 

 

$

64,858

 

 

$

41,892

 

Nonaccrual loans as a percentage of loans

 

 

0.25

%

 

 

0.33

%

 

 

0.18

%

 

 

0.25

%

 

 

0.18

%

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

 

 

0.27

%

 

 

0.34

%

 

 

0.19

%

 

 

0.27

%

 

 

0.19

%

Accruing loans 90 days past due

 

$

24,170

 

 

$

7,552

 

 

$

2,600

 

 

$

24,170

 

 

$

2,600

 

Accruing loans 90 days past due as a percentage of loans

 

 

0.10

%

 

 

0.03

%

 

 

0.01

%

 

 

0.10

%

 

 

0.01

%

Modified/restructured loans - still accruing (n)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Modified loans - still accruing

 

$

28,849

 

 

$

1,010

 

 

 

 

 

$

28,849

 

 

 

 

Modified loans - still accruing as a % of loans

 

 

0.12

%

 

 

0.00

%

 

 

 

 

 

0.12

%

 

 

 

Restructured loans - still accruing

 

 

 

 

 

 

 

$

1,925

 

 

 

 

 

$

1,925

 

Restructured loans - still accruing as a % of loans

 

 

 

 

 

 

 

 

0.01

%

 

 

 

 

 

0.01

%

PROVISION AND ALLOWANCE FOR CREDIT LOSSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

314,496

 

 

$

309,385

 

 

$

308,175

 

 

$

307,789

 

 

$

342,065

 

Provision for loan losses

 

 

30,045

 

 

 

8,487

 

 

 

(763

)

 

 

45,847

 

 

 

(35,020

)

Charge-offs

 

 

(41,234

)

 

 

(6,616

)

 

 

(6,587

)

 

 

(55,822

)

 

 

(17,947

)

Recoveries

 

 

2,984

 

 

 

3,240

 

 

 

5,291

 

 

 

8,477

 

 

 

17,018

 

Net charge-offs

 

 

(38,250

)

 

 

(3,376

)

 

 

(1,296

)

 

 

(47,345

)

 

 

(929

)

Ending Balance

 

$

306,291

 

 

$

314,496

 

 

$

306,116

 

 

$

306,291

 

 

$

306,116

 

Reserve for Unfunded Lending Commitments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

31,160

 

 

$

32,014

 

 

$

31,303

 

 

$

33,309

 

 

$

29,334

 

Provision for losses on unfunded lending commitments

 

 

(1,547

)

 

 

(854

)

 

 

2,165

 

 

 

(3,696

)

 

 

4,134

 

Ending balance

 

$

29,613

 

 

$

31,160

 

 

$

33,468

 

 

$

29,613

 

 

$

33,468

 

Total Allowance for Credit Losses

 

$

335,904

 

 

$

345,656

 

 

$

339,584

 

 

$

335,904

 

 

$

339,584

 

Total Provision for Credit Losses

 

$

28,498

 

 

$

7,633

 

 

$

1,402

 

 

$

42,151

 

 

$

(30,886

)

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

 

 

1.28

%

 

 

1.32

%

 

 

1.36

%

 

 

1.28

%

 

 

1.36

%

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

 

 

1.40

%

 

 

1.45

%

 

 

1.50

%

 

 

1.40

%

 

 

1.50

%

Allowance for loan losses as a % of nonaccrual loans

 

 

507.68

%

 

 

402.07

%

 

 

769.00

%

 

 

507.68

%

 

 

769.00

%

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

35,506

 

 

$

1,233

 

 

$

(270

)

 

$

40,094

 

 

$

(2,695

)

Residential mortgage loans

 

 

(383

)

 

 

(291

)

 

 

(894

)

 

 

(835

)

 

 

(1,361

)

Consumer loans

 

 

3,127

 

 

 

2,434

 

 

 

2,460

 

 

 

8,086

 

 

 

4,985

 

Total net charge-offs

 

$

38,250

 

 

$

3,376

 

 

$

1,296

 

 

$

47,345

 

 

$

929

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

0.75

%

 

 

0.03

%

 

 

(0.01

)%

 

 

0.29

%

 

 

(0.02

)%

Residential mortgage loans

 

 

(0.04

)%

 

 

(0.03

)%

 

 

(0.13

)%

 

 

(0.03

)%

 

 

(0.07

)%

Consumer loans

 

 

0.84

%

 

 

0.64

%

 

 

0.62

%

 

 

0.71

%

 

 

0.43

%

Total net charge-offs as a percentage of average loans

 

 

0.64

%

 

 

0.06

%

 

 

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 September 30, 2023 and $1.6 million at June 30, 2023, and troubled debt restructured loans totaling $2.8 million at September 30, 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 June 30, 2023 Report on Form 10-Q for a discussion of this standard.

(n) Reflects the balance outstanding at September 30, 2023 and June 30, 2023 of accruing modified loans to borrowers experiencing financial difficulty since adoption of ASU 2022-02. Refer to Note 1 of the June 30, 2023 Report on Form 10Q for a discussion of this standard. Periods presented prior to that date reflect 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)

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

Nonaccrual loans (m)

 

$

60,331

 

 

$

78,220

 

 

$

54,344

 

 

$

38,991

 

 

$

39,807

 

ORE and foreclosed assets

 

 

4,527

 

 

 

2,174

 

 

 

1,976

 

 

 

2,017

 

 

 

2,085

 

Total nonaccrual loans + ORE and foreclosed assets

 

$

64,858

 

 

$

80,394

 

 

$

56,320

 

 

$

41,008

 

 

$

41,892

 

Nonaccrual loans as a percentage of loans

 

 

0.25

%

 

 

0.33

%

 

 

0.23

%

 

 

0.17

%

 

 

0.18

%

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

 

 

0.27

%

 

 

0.34

%

 

 

0.24

%

 

 

0.18

%

 

 

0.19

%

Accruing loans 90 days past due

 

$

24,170

 

 

$

7,552

 

 

$

13,155

 

 

$

4,585

 

 

$

2,600

 

Accruing loans 90 days past due as a percentage of loans

 

 

0.10

%

 

 

0.03

%

 

 

0.06

%

 

 

0.02

%

 

 

0.01

%

Modified/restructured loans - still accruing (n)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Modified loans - still accruing

 

$

28,849

 

 

$

1,010

 

 

$

10

 

 

 

 

 

 

 

Modified loans - still accruing as a % of loans

 

 

0.12

%

 

 

0.00

%

 

 

0.00

%

 

 

 

 

 

 

Restructured loans - still accruing

 

 

 

 

 

 

 

 

 

 

$

1,907

 

 

$

1,925

 

Restructured loans - still accruing as a % of loans

 

 

 

 

 

 

 

 

 

 

 

0.01

%

 

 

0.01

%

PROVISION AND ALLOWANCE FOR CREDIT LOSSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

306,291

 

 

$

314,496

 

 

$

309,385

 

 

$

307,789

 

 

$

306,116

 

Reserve for unfunded lending commitments

 

 

29,613

 

 

 

31,160

 

 

 

32,014

 

 

 

33,309

 

 

 

33,468

 

Total allowance for credit losses

 

$

335,904

 

 

$

345,656

 

 

$

341,399

 

 

$

341,098

 

 

$

339,584

 

Total provision for credit losses

 

$

28,498

 

 

$

7,633

 

 

$

6,020

 

 

$

2,487

 

 

$

1,402

 

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

 

 

1.28

%

 

 

1.32

%

 

 

1.32

%

 

 

1.33

%

 

 

1.36

%

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

 

 

1.40

%

 

 

1.45

%

 

 

1.46

%

 

 

1.48

%

 

 

1.50

%

Allowance for loan losses as a % of nonaccrual loans

 

 

507.68

%

 

 

402.07

%

 

 

569.31

%

 

 

789.38

%

 

 

769.00

%

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

35,506

 

 

$

1,233

 

 

$

3,355

 

 

$

(1,201

)

 

$

(270

)

Residential mortgage loans

 

 

(383

)

 

 

(291

)

 

 

(161

)

 

 

(251

)

 

 

(894

)

Consumer loans

 

 

3,127

 

 

 

2,434

 

 

 

2,525

 

 

 

2,425

 

 

 

2,460

 

Total net charge-offs

 

$

38,250

 

 

$

3,376

 

 

$

5,719

 

 

$

973

 

 

$

1,296

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

0.75

%

 

 

0.03

%

 

 

0.07

%

 

 

(0.03

)%

 

 

(0.01

)%

Residential mortgage loans

 

 

(0.04

)%

 

 

(0.03

)%

 

 

(0.02

)%

 

 

(0.03

)%

 

 

(0.13

)%

Consumer loans

 

 

0.84

%

 

 

0.64

%

 

 

0.66

%

 

 

0.61

%

 

 

0.62

%

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

 

 

0.64

%

 

 

0.06

%

 

 

0.10

%

 

 

0.02

%

 

 

0.02

%

AVERAGE LOANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

18,678,969

 

 

$

18,670,814

 

 

$

18,322,189

 

 

$

18,178,496

 

 

$

17,855,937

 

Residential mortgage loans

 

 

3,669,922

 

 

 

3,469,030

 

 

 

3,214,439

 

 

 

2,968,876

 

 

 

2,713,383

 

Consumer loans

 

 

1,481,833

 

 

 

1,515,150

 

 

 

1,549,901

 

 

 

1,575,876

 

 

 

1,569,389

 

Total average loans

 

$

23,830,724

 

 

$

23,654,994

 

 

$

23,086,529

 

 

$

22,723,248

 

 

$

22,138,709

 

(m) Included in nonaccrual loans are nonaccruing modified loans to borrowers experiencing financial difficulties totaling less than $0.1 million at September 30, 2023, $1.6 million at June 30, 2023 and March 31, 2023 and troubled debt restructured loans totaling $2.6 million and $2.8 million at December 31, 2022 and September 30, 2022, respectively. 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 June 30, 2023 Report on Form 10-Q for a discussion of this standard.

(n) Reflects the balance outstanding at 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 June 30, 2023 Report on Form 10-Q for a discussion of this standard. Periods persented prior to that date reflect 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in thousands)

 

9/30/2023

 

 

6/30/2023

 

 

3/31/2023

 

 

12/31/2022

 

 

9/30/2022

 

 

9/30/2023

 

 

9/30/2022

 

Net interest income

 

$

269,234

 

 

$

273,911

 

 

$

284,994

 

 

$

295,501

 

 

$

280,307

 

 

$

828,139

 

 

$

754,502

 

Noninterest income

 

 

85,974

 

 

 

83,225

 

 

 

80,330

 

 

 

77,064

 

 

 

85,337

 

 

 

249,529

 

 

 

254,422

 

Total revenue

 

 

355,208

 

 

 

357,136

 

 

 

365,324

 

 

 

372,565

 

 

 

365,644

 

 

 

1,077,668

 

 

 

1,008,924

 

Taxable equivalent adjustment (o)

 

 

2,852

 

 

 

2,837

 

 

 

2,584

 

 

 

2,615

 

 

 

2,603

 

 

 

8,273

 

 

 

7,733

 

Nonoperating revenue

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Operating revenue (TE)

 

 

358,060

 

 

 

359,973

 

 

 

367,908

 

 

 

375,180

 

 

 

368,247

 

 

 

1,085,941

 

 

 

1,016,657

 

Noninterest expense

 

 

(204,675

)

 

 

(202,138

)

 

 

(200,884

)

 

 

(190,154

)

 

 

(193,502

)

 

 

(607,697

)

 

 

(560,538

)

Nonoperating expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Operating pre-provision net revenue (TE)

 

$

153,385

 

 

$

157,835

 

 

$

167,024

 

 

$

185,026

 

 

$

174,745

 

 

$

478,244

 

 

$

456,119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

17