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

 

Exhibit 99.1

img88180657_0.jpg 

 

FOR IMMEDIATE RELEASE

July 16, 2024

For more information

Kathryn Shrout Mistich, VP, Investor Relations Manager

504.539.7836 or kathryn.mistich@hancockwhitney.com

 

 

Hancock Whitney reports second quarter 2024 EPS of $1.31

 

GULFPORT, Miss. (July 16, 2024) — Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the second quarter of 2024. Net income for the second quarter of 2024 totaled $114.6 million, or $1.31 per diluted common share (EPS), compared to $108.6 million, or $1.24 per diluted common share, in the first quarter of 2024. The first quarter of 2024 included a supplemental disclosure expense item of $3.8 million, or $0.04 per diluted common share, related to a revision to the FDIC Special Assessment. The second quarter of 2024 did not include any supplemental disclosure items. The company reported net income for the second quarter of 2023 of $117.8 million, or $1.35 per diluted common share. There were no supplemental disclosure items in the second quarter of 2023.

Second Quarter 2024 Highlights

•
Net income totaled $114.6 million, compared to $108.6 million in the prior quarter
•
Adjusted pre-provision net revenue (PPNR) totaled $156.4 million, compared to $152.9 million in the prior quarter
•
Loans decreased $59.3 million, or 1% linked quarter annualized (LQA)
•
Deposits decreased $575.2 million, or 8% LQA
•
Criticized commercial loans and nonaccrual loans continued to normalize
•
ACL coverage solid at 1.43%, up 1 bp compared to prior quarter
•
NIM 3.37%, up 5 bps compared to prior quarter
•
CET1 ratio estimated at 13.25%, up 60 bps linked-quarter; TCE ratio 8.77%, up 16 bps linked-quarter
•
Efficiency ratio 56.18%, down 26 bps linked-quarter

“We are very pleased with the results of the second quarter,” said John M. Hairston, President & CEO. “We continued to improve profitability with NIM expansion, fee income growth, and a focus on controlling expenses. Credit metrics continued to normalize, reflecting a more stable direction, and we’ve maintained a solid ACL to loans of 1.43%. Our capital ratios are strong, and we deployed capital by increasing the common dividend per share and resuming share buybacks during the quarter. We look forward to carrying this momentum through the second half of 2024, and to achieving our 125th anniversary of helping people and communities realize their dreams.”

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Loans

Total loans were $23.9 billion at June 30, 2024, down $59.3 million, or less than 1%, from March 31, 2024. The decrease was primarily due to the runoff of a Shared National Credit portfolio of $221 million as we remain focused on originating more granular loans.

Average loans totaled $23.9 billion for the second quarter of 2024, up $107.2 million, or less than 1%, linked-quarter. Management expects 2024 period-end loan balances to be flat to down slightly from year-end 2023.

Deposits

Total deposits at June 30, 2024 were $29.2 billion, down $575.2 million, or 2%, from March 31, 2024. The linked-quarter decrease in deposits was driven primarily by a decrease of $415.3 million in interest-bearing deposits that includes seasonal decreases in interest-bearing transaction and savings deposits and interest-bearing public funds, and a decrease in brokered deposits due to maturities that were not replaced during the quarter. These decreases were offset by an increase in retail time deposits despite maturity concentrations and promotional rate reductions during the quarter.

DDAs totaled $10.6 billion at June 30, 2024, down $159.9 million, or 1%, from March 31, 2024 and comprised 36% of total period-end deposits. Interest-bearing transaction and savings deposits totaled $10.8 billion at the end of the second quarter of 2024, down $140.6 million, or 1%, linked-quarter. Compared to March 31, 2024, retail time deposits of $4.6 billion were up $64.6 million, or 1%, and brokered deposits were $200.1 million, down $194.7 million, or 49%, compared to the prior quarter. Interest-bearing public fund deposits decreased $144.5 million, or 5%, linked-quarter, totaling $2.9 billion at June 30, 2024.

 

Average deposits for the second quarter of 2024 were $29.1 billion, down $491.9 million, or 2%, linked-quarter. Management expects 2024 period-end deposit levels to be flat to down slightly from year-end 2023.

Asset Quality

The total allowance for credit losses (ACL) was $342.2 million at June 30, 2024, up $1.4 million, or less than 1%, from March 31, 2024. During the second quarter of 2024, the company recorded a provision for credit losses of $8.7 million, compared to a provision for credit losses of $13.0 million in the first quarter of 2024. There were $7.3 million of net charge-offs in the second quarter of 2024, or 0.12% of average total loans on an annualized basis, compared to net charge-offs of $9.0 million, or 0.15% of average total loans in the first quarter of 2024. The ratio of ACL to period-end loans was 1.43% at June 30, 2024, compared to 1.42% at March 31, 2024.

 

Criticized commercial loans totaled $379.8 million, or 2.05% of total commercial loans, at June 30, 2024, compared to $339.9 million, or 1.83% of total commercial loans at March 31 2024. Nonaccrual loans totaled $86.3 million, or 0.36% of total loans, at June 30, 2024, compared to $82.1 million, or 0.34% of total loans, at March 31, 2024. ORE and foreclosed assets were $2.1 million at June 30, 2024, down $0.7 million, or 24% linked-quarter.

Net Interest Income and Net Interest Margin (NIM)

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Net interest income (TE) for the second quarter of 2024 was $273.3 million, an increase of $4.3 million, or 2%, from the first quarter of 2024. The net interest margin (NIM) (TE) was 3.37% in the second quarter of 2024, up 5 bps linked-quarter. Higher loan yields (+6 bps), higher securities yields (+1 bp) and the impact of change in deposit rates (+1 bp), led to an 8 basis point improvement in NIM, offset by an unfavorable shift in borrowing mix (-3 bps). We expect modest NIM expansion in the second half of 2024, assuming no rate cuts through year-end.

 

Average earning assets were $32.5 billion for the second quarter of 2024, virtually unchanged from the first quarter of 2024.

Noninterest Income

Noninterest income totaled $89.2 million for the second quarter of 2024, up $1.3 million, or 2%, from the first quarter of 2024.

Service charges on deposits were virtually unchanged from the first quarter of 2024. Bank card and ATM fees were up $1.2 million, or 6%, from the first quarter of 2024 due to higher customer activity.

Investment and annuity income and insurance fees were down $2.1 million, or 17%, linked-quarter, related to lower stock and bond trading volume and lower annuity sales, compared to record-high volume in the first quarter of 2024. Trust fees were up $1.4 million, or 8% linked-quarter, due to annual collection of tax preparation fees, higher market values, and higher sales. Fees from secondary mortgage operations totaled $3.5 million for the second quarter of 2024, up $0.7 million, or 23%, linked-quarter, due to continued shift to secondary focused production.

Other noninterest income was $13.3 million in the second quarter of 2024, up $0.1 million, or 1%, from the first quarter of 2024.

Noninterest Expense & Taxes

Noninterest expense totaled $206.0 million, down $1.7 million, or 1% linked-quarter. There were no supplemental disclosure items related to expense in the second quarter of 2024. Expenses in the first quarter of 2024 included $3.8 million of a supplemental disclosure item related to a revision to the FDIC Special Assessment.

Personnel expense totaled $118.7 million in the second quarter of 2024, down $2.4 million, or 2%, linked-quarter. The decrease was due to lower incentives, payroll taxes, and retirement benefits. Net occupancy and equipment expense totaled $17.5 million in the second quarter of 2024, down $0.2 million, or 1%, from the first quarter of 2024. Amortization of intangibles totaled $2.4 million for the second quarter of 2024, down $0.1 million, or 5%, linked-quarter.

ORE and other foreclosed assets was a net gain of $1.1 million in the second quarter of 2024, compared to a net gain of $0.2 million in the first quarter of 2024.

Other expense totaled $68.5 million in the second quarter of 2024, up $1.9 million, or 3%, linked-quarter, largely related to higher data processing and professional services expenses. Prior quarter’s

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other expense included $3.8 million of a supplemental disclosure item related to a revision to the FDIC Special Assessment.

The effective income tax rate for the second quarter of 2024 was 20.9%.

Capital

Common stockholders’ equity at June 30, 2024 totaled $3.9 billion, up $67.3 million, or 2%, from March 31, 2024. The tangible common equity (TCE) ratio was 8.77%, up 16 bps linked-quarter. The company’s CET1 ratio is estimated to be 13.25% at June 30, 2024, up 60 bps linked-quarter. Total risk-based capital ratio is estimated to be 15.00% at June 30, 2024, up 66 bps linked-quarter. During the second quarter of 2024, the company repurchased 312,993 shares of its common stock at an average price of $46.69 per share. This stock repurchase is pursuant to the company’s share buyback program (authorizing the repurchase of up to 4,297,000 shares of the company’s outstanding common stock), which is set to expire on December 31, 2024. To-date the company has repurchased 312,993 shares under this buyback program.

Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 3:30 p.m. Central Time on Tuesday, July 16, 2024 to review second quarter of 2024results. 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 second 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 July 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 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.

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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 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, 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

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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, including the impact of prolonged elevated interest rates on our financial projections, models and guidance 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 release 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

 

FINANCIAL HIGHLIGHTS

 

(Unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

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

 

6/30/2024

 

 

3/31/2024

 

 

6/30/2023

 

 

6/30/2024

 

 

6/30/2023

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

270,430

 

 

$

266,171

 

 

$

273,911

 

 

$

536,601

 

 

$

558,905

 

Net interest income (TE) (a)

 

 

273,258

 

 

 

269,001

 

 

 

276,748

 

 

 

542,259

 

 

 

564,326

 

Provision for credit losses

 

 

8,723

 

 

 

12,968

 

 

 

7,633

 

 

 

21,691

 

 

 

13,653

 

Noninterest income

 

 

89,174

 

 

 

87,851

 

 

 

83,225

 

 

 

177,025

 

 

 

163,555

 

Noninterest expense

 

 

206,016

 

 

 

207,722

 

 

 

202,138

 

 

 

413,738

 

 

 

403,022

 

Income tax expense

 

 

30,308

 

 

 

24,720

 

 

 

29,571

 

 

 

55,028

 

 

 

61,524

 

Net income

 

$

114,557

 

 

$

108,612

 

 

$

117,794

 

 

$

223,169

 

 

$

244,261

 

Supplemental disclosure items - included above, pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

$

—

 

 

$

3,800

 

 

$

—

 

 

$

3,800

 

 

$

—

 

PERIOD-END BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,911,616

 

 

$

23,970,938

 

 

$

23,789,886

 

 

$

23,911,616

 

 

$

23,789,886

 

Securities

 

 

7,535,836

 

 

 

7,559,182

 

 

 

8,195,679

 

 

 

7,535,836

 

 

 

8,195,679

 

Earning assets

 

 

32,056,415

 

 

 

31,985,610

 

 

 

32,715,630

 

 

 

32,056,415

 

 

 

32,715,630

 

Total assets

 

 

35,412,291

 

 

 

35,247,119

 

 

 

36,210,148

 

 

 

35,412,291

 

 

 

36,210,148

 

Noninterest-bearing deposits

 

 

10,642,213

 

 

 

10,802,127

 

 

 

12,171,817

 

 

 

10,642,213

 

 

 

12,171,817

 

Total deposits

 

 

29,200,718

 

 

 

29,775,906

 

 

 

30,043,501

 

 

 

29,200,718

 

 

 

30,043,501

 

Common stockholders' equity

 

 

3,920,718

 

 

 

3,853,436

 

 

 

3,554,476

 

 

 

3,920,718

 

 

 

3,554,476

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,917,361

 

 

$

23,810,163

 

 

$

23,654,994

 

 

$

23,863,762

 

 

$

23,372,331

 

Securities (b)

 

 

8,214,172

 

 

 

8,197,410

 

 

 

9,007,821

 

 

 

8,205,791

 

 

 

9,072,071

 

Earning assets

 

 

32,539,363

 

 

 

32,556,821

 

 

 

33,619,829

 

 

 

32,548,092

 

 

 

33,189,197

 

Total assets

 

 

34,998,880

 

 

 

35,101,869

 

 

 

36,205,396

 

 

 

35,050,375

 

 

 

35,685,113

 

Noninterest-bearing deposits

 

 

10,526,903

 

 

 

10,673,060

 

 

 

12,153,453

 

 

 

10,599,981

 

 

 

12,556,056

 

Total deposits

 

 

29,069,097

 

 

 

29,560,956

 

 

 

29,372,899

 

 

 

29,315,026

 

 

 

29,084,477

 

Common stockholders' equity

 

 

3,826,296

 

 

 

3,818,840

 

 

 

3,567,260

 

 

 

3,822,568

 

 

 

3,490,463

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted

 

$

1.31

 

 

$

1.24

 

 

$

1.35

 

 

$

2.55

 

 

$

2.80

 

Cash dividends per share

 

 

0.40

 

 

 

0.30

 

 

 

0.30

 

 

 

0.70

 

 

 

0.60

 

Book value per share (period-end)

 

 

45.40

 

 

 

44.49

 

 

 

41.27

 

 

 

45.40

 

 

 

41.27

 

Tangible book value per share (period-end)

 

 

35.04

 

 

 

34.12

 

 

 

30.76

 

 

 

35.04

 

 

 

30.76

 

Weighted average number of shares - diluted

 

 

86,765

 

 

 

86,726

 

 

 

86,370

 

 

 

86,768

 

 

 

86,350

 

Period-end number of shares

 

 

86,355

 

 

 

86,622

 

 

 

86,123

 

 

 

86,355

 

 

 

86,123

 

Market data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High sales price

 

$

49.11

 

 

$

49.10

 

 

$

43.73

 

 

$

49.11

 

 

$

54.38

 

Low sales price

 

 

41.56

 

 

 

41.19

 

 

 

31.02

 

 

 

41.19

 

 

 

31.02

 

Period-end closing price

 

 

47.83

 

 

 

46.04

 

 

 

38.38

 

 

 

47.83

 

 

 

38.38

 

Trading volume

 

 

29,308

 

 

 

30,508

 

 

 

38,854

 

 

 

59,816

 

 

 

77,885

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.32

%

 

 

1.24

%

 

 

1.30

%

 

 

1.28

%

 

 

1.38

%

Return on average common equity

 

 

12.04

%

 

 

11.44

%

 

 

13.24

%

 

 

11.74

%

 

 

14.11

%

Return on average tangible common equity

 

 

15.73

%

 

 

14.96

%

 

 

17.76

%

 

 

15.34

%

 

 

19.08

%

Tangible common equity ratio (c)

 

 

8.77

%

 

 

8.61

%

 

 

7.50

%

 

 

8.77

%

 

 

7.50

%

Net interest margin (TE)

 

 

3.37

%

 

 

3.32

%

 

 

3.30

%

 

 

3.34

%

 

 

3.42

%

Noninterest income as a percentage of total revenue (TE)

 

 

24.60

%

 

 

24.62

%

 

 

23.12

%

 

 

24.61

%

 

 

22.47

%

Efficiency ratio (d)

 

 

56.18

%

 

 

56.44

%

 

 

55.33

%

 

 

56.31

%

 

 

54.54

%

Average loan/deposit ratio

 

 

82.28

%

 

 

80.55

%

 

 

80.53

%

 

 

81.40

%

 

 

80.36

%

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

 

 

1.32

%

 

 

1.31

%

 

 

1.32

%

 

 

1.32

%

 

 

1.32

%

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

 

 

1.43

%

 

 

1.42

%

 

 

1.45

%

 

 

1.43

%

 

 

1.45

%

Annualized net charge-offs to average loans

 

 

0.12

%

 

 

0.15

%

 

 

0.06

%

 

 

0.14

%

 

 

0.08

%

Allowance for loan losses as a % of nonaccrual loans

 

 

366.54

%

 

 

382.21

%

 

 

402.07

%

 

 

366.54

%

 

 

402.07

%

FTE headcount

 

 

3,541

 

 

 

3,564

 

 

 

3,705

 

 

 

3,541

 

 

 

3,705

 

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

 

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

 

(c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets.

 

(d) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and supplemental disclosure items noted above.

 

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

 

 

 

 

7

 

 

HANCOCK WHITNEY CORPORATION

 

QUARTERLY FINANCIAL HIGHLIGHTS

 

(Unaudited)

 

 

 

Three Months Ended

 

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

 

6/30/2024

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

270,430

 

 

$

266,171

 

 

$

269,460

 

 

$

269,234

 

 

$

273,911

 

Net interest income (TE) (a)

 

 

273,258

 

 

 

269,001

 

 

 

272,294

 

 

 

272,086

 

 

 

276,748

 

Provision for credit losses

 

 

8,723

 

 

 

12,968

 

 

 

16,952

 

 

 

28,498

 

 

 

7,633

 

Noninterest income

 

 

89,174

 

 

 

87,851

 

 

 

38,951

 

 

 

85,974

 

 

 

83,225

 

Noninterest expense

 

 

206,016

 

 

 

207,722

 

 

 

229,151

 

 

 

204,675

 

 

 

202,138

 

Income tax expense

 

 

30,308

 

 

 

24,720

 

 

 

11,705

 

 

 

24,297

 

 

 

29,571

 

Net income

 

$

114,557

 

 

$

108,612

 

 

$

50,603

 

 

$

97,738

 

 

$

117,794

 

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

 

$

23,911,616

 

 

$

23,970,938

 

 

$

23,921,917

 

 

$

23,983,679

 

 

$

23,789,886

 

Securities

 

 

7,535,836

 

 

 

7,559,182

 

 

 

7,599,974

 

 

 

7,916,101

 

 

 

8,195,679

 

Earning assets

 

 

32,056,415

 

 

 

31,985,610

 

 

 

32,175,097

 

 

 

32,733,591

 

 

 

32,715,630

 

Total assets

 

 

35,412,291

 

 

 

35,247,119

 

 

 

35,578,573

 

 

 

36,298,301

 

 

 

36,210,148

 

Noninterest-bearing deposits

 

 

10,642,213

 

 

 

10,802,127

 

 

 

11,030,515

 

 

 

11,626,371

 

 

 

12,171,817

 

Total deposits

 

 

29,200,718

 

 

 

29,775,906

 

 

 

29,690,059

 

 

 

30,320,337

 

 

 

30,043,501

 

Common stockholders' equity

 

 

3,920,718

 

 

 

3,853,436

 

 

 

3,803,661

 

 

 

3,501,003

 

 

 

3,554,476

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

23,917,361

 

 

$

23,810,163

 

 

$

23,795,681

 

 

$

23,830,724

 

 

$

23,654,994

 

Securities (b)

 

 

8,214,172

 

 

 

8,197,410

 

 

 

8,579,444

 

 

 

8,888,477

 

 

 

9,007,821

 

Earning assets

 

 

32,539,363

 

 

 

32,556,821

 

 

 

33,128,130

 

 

 

33,137,565

 

 

 

33,619,829

 

Total assets

 

 

34,998,880

 

 

 

35,101,869

 

 

 

35,538,300

 

 

 

35,626,927

 

 

 

36,205,396

 

Noninterest-bearing deposits

 

 

10,526,903

 

 

 

10,673,060

 

 

 

11,132,354

 

 

 

11,453,236

 

 

 

12,153,453

 

Total deposits

 

 

29,069,097

 

 

 

29,560,956

 

 

 

29,974,941

 

 

 

29,757,180

 

 

 

29,372,899

 

Common stockholders' equity

 

 

3,826,296

 

 

 

3,818,840

 

 

 

3,560,978

 

 

 

3,572,487

 

 

 

3,567,260

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted

 

$

1.31

 

 

$

1.24

 

 

$

0.58

 

 

$

1.12

 

 

$

1.35

 

Cash dividends per share

 

 

0.40

 

 

 

0.30

 

 

 

0.30

 

 

 

0.30

 

 

 

0.30

 

Book value per share (period-end)

 

 

45.40

 

 

 

44.49

 

 

 

44.05

 

 

 

40.64

 

 

 

41.27

 

Tangible book value per share (period-end)

 

 

35.04

 

 

 

34.12

 

 

 

33.63

 

 

 

30.16

 

 

 

30.76

 

Weighted average number of shares - diluted

 

 

86,765

 

 

 

86,726

 

 

 

86,604

 

 

 

86,437

 

 

 

86,370

 

Period-end number of shares

 

 

86,355

 

 

 

86,622

 

 

 

86,345

 

 

 

86,148

 

 

 

86,123

 

Market data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High sales price

 

$

49.11

 

 

$

49.10

 

 

$

49.65

 

 

$

45.15

 

 

$

43.73

 

Low sales price

 

 

41.56

 

 

 

41.19

 

 

 

32.16

 

 

 

35.34

 

 

 

31.02

 

Period-end closing price

 

 

47.83

 

 

 

46.04

 

 

 

48.59

 

 

 

36.99

 

 

 

38.38

 

Trading volume

 

 

29,308

 

 

 

30,508

 

 

 

38,574

 

 

 

34,506

 

 

 

38,854

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.32

%

 

 

1.24

%

 

 

0.56

%

 

 

1.09

%

 

 

1.30

%

Return on average common equity

 

 

12.04

%

 

 

11.44

%

 

 

5.64

%

 

 

10.85

%

 

 

13.24

%

Return on average tangible common equity

 

 

15.73

%

 

 

14.96

%

 

 

7.55

%

 

 

14.53

%

 

 

17.76

%

Tangible common equity ratio (c)

 

 

8.77

%

 

 

8.61

%

 

 

8.37

%

 

 

7.34

%

 

 

7.50

%

Net interest margin (TE)

 

 

3.37

%

 

 

3.32

%

 

 

3.27

%

 

 

3.27

%

 

 

3.30

%

Noninterest income as a percentage of total revenue (TE)

 

 

24.60

%

 

 

24.62

%

 

 

12.51

%

 

 

24.01

%

 

 

23.12

%

Efficiency ratio (d)

 

 

56.18

%

 

 

56.44

%

 

 

55.58

%

 

 

56.38

%

 

 

55.33

%

Average loan/deposit ratio

 

 

82.28

%

 

 

80.55

%

 

 

79.39

%

 

 

80.08

%

 

 

80.53

%

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

 

 

1.32

%

 

 

1.31

%

 

 

1.29

%

 

 

1.28

%

 

 

1.32

%

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

 

 

1.43

%

 

 

1.42

%

 

 

1.41

%

 

 

1.40

%

 

 

1.45

%

Annualized net charge-offs to average loans

 

 

0.12

%

 

 

0.15

%

 

 

0.27

%

 

 

0.64

%

 

 

0.06

%

Allowance for loan losses as a % of nonaccrual loans

 

 

366.54

%

 

 

382.21

%

 

 

521.56

%

 

 

507.68

%

 

 

402.07

%

FTE headcount

 

 

3,541

 

 

 

3,564

 

 

 

3,591

 

 

 

3,681

 

 

 

3,705

 

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

 

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

 

(c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets.

 

(d) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and supplemental disclosures noted above.

 

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

 

 

 

 

8

 

 

 

 

HANCOCK WHITNEY CORPORATION

 

INCOME STATEMENT

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(dollars in thousands, except per share data)

 

6/30/2024

 

 

3/31/2024

 

 

6/30/2023

 

 

6/30/2024

 

 

6/30/2023

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

427,545

 

 

$

421,684

 

 

$

405,273

 

 

$

849,229

 

 

$

777,876

 

Interest income (TE) (f)

 

 

430,373

 

 

 

424,514

 

 

 

408,110

 

 

 

854,887

 

 

 

783,297

 

Interest expense

 

 

157,115

 

 

 

155,513

 

 

 

131,362

 

 

 

312,628

 

 

 

218,971

 

Net interest income (TE)

 

 

273,258

 

 

 

269,001

 

 

 

276,748

 

 

 

542,259

 

 

 

564,326

 

Provision for credit losses

 

 

8,723

 

 

 

12,968

 

 

 

7,633

 

 

 

21,691

 

 

 

13,653

 

Noninterest income

 

 

89,174

 

 

 

87,851

 

 

 

83,225

 

 

 

177,025

 

 

 

163,555

 

Noninterest expense

 

 

206,016

 

 

 

207,722

 

 

 

202,138

 

 

 

413,738

 

 

 

403,022

 

Income before income taxes

 

 

144,865

 

 

 

133,332

 

 

 

147,365

 

 

 

278,197

 

 

 

305,785

 

Income tax expense

 

 

30,308

 

 

 

24,720

 

 

 

29,571

 

 

 

55,028

 

 

 

61,524

 

Net income

 

$

114,557

 

 

$

108,612

 

 

$

117,794

 

 

$

223,169

 

 

$

244,261

 

Supplemental disclosure items - included above, pre-tax

 

 

 

 

 

 

 

 

 

 

Included in noninterest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

$

—

 

 

$

3,800

 

 

$

—

 

 

$

3,800

 

 

$

—

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

22,275

 

 

$

22,239

 

 

$

21,491

 

 

$

44,514

 

 

$

42,113

 

Trust fees

 

 

18,473

 

 

 

17,077

 

 

 

17,393

 

 

 

35,550

 

 

 

34,127

 

Bank card and ATM fees

 

 

21,827

 

 

 

20,622

 

 

 

20,982

 

 

 

42,449

 

 

 

41,703

 

Investment and annuity fees and insurance commissions

 

 

9,789

 

 

 

11,844

 

 

 

8,241

 

 

 

21,633

 

 

 

17,108

 

Secondary mortgage market operations

 

 

3,546

 

 

 

2,891

 

 

 

2,299

 

 

 

6,437

 

 

 

4,467

 

Other income

 

 

13,264

 

 

 

13,178

 

 

 

12,819

 

 

 

26,442

 

 

 

24,037

 

Total noninterest income

 

$

89,174

 

 

$

87,851

 

 

$

83,225

 

 

$

177,025

 

 

$

163,555

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

$

118,726

 

 

$

121,157

 

 

$

114,864

 

 

$

239,883

 

 

$

230,187

 

Net occupancy and equipment expense

 

 

17,470

 

 

 

17,623

 

 

 

17,750

 

 

 

35,093

 

 

 

34,692

 

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

 

 

(1,099

)

 

 

(196

)

 

 

(282

)

 

 

(1,295

)

 

 

(127

)

Other expense

 

 

68,530

 

 

 

66,612

 

 

 

66,849

 

 

 

135,142

 

 

 

132,199

 

Amortization of intangibles

 

 

2,389

 

 

 

2,526

 

 

 

2,957

 

 

 

4,915

 

 

 

6,071

 

Total noninterest expense

 

$

206,016

 

 

$

207,722

 

 

$

202,138

 

 

$

413,738

 

 

$

403,022

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.31

 

 

$

1.25

 

 

$

1.35

 

 

$

2.56

 

 

$

2.81

 

Diluted

 

 

1.31

 

 

 

1.24

 

 

 

1.35

 

 

 

2.55

 

 

 

2.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

6/30/2024

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

427,545

 

 

$

421,684

 

 

$

426,794

 

 

$

415,827

 

 

$

405,273

 

Interest income (TE) (f)

 

 

430,373

 

 

 

424,514

 

 

 

429,628

 

 

 

418,679

 

 

 

408,110

 

Interest expense

 

 

157,115

 

 

 

155,513

 

 

 

157,334

 

 

 

146,593

 

 

 

131,362

 

Net interest income (TE)

 

 

273,258

 

 

 

269,001

 

 

 

272,294

 

 

 

272,086

 

 

 

276,748

 

Provision for credit losses

 

 

8,723

 

 

 

12,968

 

 

 

16,952

 

 

 

28,498

 

 

 

7,633

 

Noninterest income

 

 

89,174

 

 

 

87,851

 

 

 

38,951

 

 

 

85,974

 

 

 

83,225

 

Noninterest expense

 

 

206,016

 

 

 

207,722

 

 

 

229,151

 

 

 

204,675

 

 

 

202,138

 

Income before income taxes

 

 

144,865

 

 

 

133,332

 

 

 

62,308

 

 

 

122,035

 

 

 

147,365

 

Income tax expense

 

 

30,308

 

 

 

24,720

 

 

 

11,705

 

 

 

24,297

 

 

 

29,571

 

Net income

 

$

114,557

 

 

$

108,612

 

 

$

50,603

 

 

$

97,738

 

 

$

117,794

 

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

 

$

22,275

 

 

$

22,239

 

 

$

21,643

 

 

$

22,264

 

 

$

21,491

 

Trust fees

 

 

18,473

 

 

 

17,077

 

 

 

16,845

 

 

 

16,593

 

 

 

17,393

 

Bank card and ATM fees

 

 

21,827

 

 

 

20,622

 

 

 

20,708

 

 

 

20,555

 

 

 

20,982

 

Investment and annuity fees and insurance commissions

 

 

9,789

 

 

 

11,844

 

 

 

11,086

 

 

 

8,520

 

 

 

8,241

 

Secondary mortgage market operations

 

 

3,546

 

 

 

2,891

 

 

 

2,083

 

 

 

2,609

 

 

 

2,299

 

Securities transactions, net

 

 

—

 

 

 

—

 

 

 

(65,380

)

 

 

—

 

 

 

—

 

Other income

 

 

13,264

 

 

 

13,178

 

 

 

31,966

 

 

 

15,433

 

 

 

12,819

 

Total noninterest income

 

$

89,174

 

 

$

87,851

 

 

$

38,951

 

 

$

85,974

 

 

$

83,225

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

$

118,726

 

 

$

121,157

 

 

$

114,342

 

 

$

116,266

 

 

$

114,864

 

Net occupancy and equipment expense

 

 

17,470

 

 

 

17,623

 

 

 

17,523

 

 

 

18,210

 

 

 

17,750

 

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

 

 

(1,099

)

 

 

(196

)

 

 

(471

)

 

 

(26

)

 

 

(282

)

Other expense

 

 

68,530

 

 

 

66,612

 

 

 

95,085

 

 

 

67,412

 

 

 

66,849

 

Amortization of intangibles

 

 

2,389

 

 

 

2,526

 

 

 

2,672

 

 

 

2,813

 

 

 

2,957

 

Total noninterest expense

 

$

206,016

 

 

$

207,722

 

 

$

229,151

 

 

$

204,675

 

 

$

202,138

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.31

 

 

$

1.25

 

 

$

0.58

 

 

$

1.12

 

 

$

1.35

 

Diluted

 

 

1.31

 

 

 

1.24

 

 

 

0.58

 

 

 

1.12

 

 

 

1.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

 

6/30/2024

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

9,847,759

 

 

$

9,926,333

 

 

$

9,957,284

 

 

$

10,075,585

 

 

$

10,113,932

 

Commercial real estate - owner occupied loans

 

 

3,094,258

 

 

 

3,080,192

 

 

 

3,093,763

 

 

 

3,081,327

 

 

 

3,058,829

 

Total commercial and industrial loans

 

 

12,942,017

 

 

 

13,006,525

 

 

 

13,051,047

 

 

 

13,156,912

 

 

 

13,172,761

 

Commercial real estate - income producing loans

 

 

4,053,812

 

 

 

4,042,797

 

 

 

3,986,943

 

 

 

4,027,553

 

 

 

3,762,428

 

Construction and land development loans

 

 

1,528,393

 

 

 

1,541,773

 

 

 

1,551,091

 

 

 

1,614,846

 

 

 

1,768,252

 

Residential mortgage loans

 

 

4,000,211

 

 

 

3,983,321

 

 

 

3,886,072

 

 

 

3,721,106

 

 

 

3,581,514

 

Consumer loans

 

 

1,387,183

 

 

 

1,396,522

 

 

 

1,446,764

 

 

 

1,463,262

 

 

 

1,504,931

 

Total loans

 

 

23,911,616

 

 

 

23,970,938

 

 

 

23,921,917

 

 

 

23,983,679

 

 

 

23,789,886

 

Loans held for sale

 

 

27,354

 

 

 

16,470

 

 

 

26,124

 

 

 

15,862

 

 

 

55,902

 

Securities

 

 

7,535,836

 

 

 

7,559,182

 

 

 

7,599,974

 

 

 

7,916,101

 

 

 

8,195,679

 

Short-term investments

 

 

581,609

 

 

 

439,020

 

 

 

627,082

 

 

 

817,949

 

 

 

674,163

 

Earning assets

 

 

32,056,415

 

 

 

31,985,610

 

 

 

32,175,097

 

 

 

32,733,591

 

 

 

32,715,630

 

Allowance for loan losses

 

 

(316,148

)

 

 

(313,726

)

 

 

(307,907

)

 

 

(306,291

)

 

 

(314,496

)

Goodwill and other intangible assets

 

 

895,175

 

 

 

897,564

 

 

 

900,090

 

 

 

902,762

 

 

 

905,575

 

Other assets

 

 

2,776,849

 

 

 

2,677,671

 

 

 

2,811,293

 

 

 

2,968,239

 

 

 

2,903,439

 

Total assets

 

$

35,412,291

 

 

$

35,247,119

 

 

$

35,578,573

 

 

$

36,298,301

 

 

$

36,210,148

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

10,642,213

 

 

$

10,802,127

 

 

$

11,030,515

 

 

$

11,626,371

 

 

$

12,171,817

 

Interest-bearing transaction and savings deposits

 

 

10,813,648

 

 

 

10,954,231

 

 

 

10,659,970

 

 

 

10,668,241

 

 

 

10,438,820

 

Interest-bearing public fund deposits

 

 

2,921,724

 

 

 

3,066,270

 

 

 

3,143,015

 

 

 

2,853,236

 

 

 

2,925,432

 

Time deposits

 

 

4,823,133

 

 

 

4,953,278

 

 

 

4,856,559

 

 

 

5,172,489

 

 

 

4,507,432

 

Total interest-bearing deposits

 

 

18,558,505

 

 

 

18,973,779

 

 

 

18,659,544

 

 

 

18,693,966

 

 

 

17,871,684

 

Total deposits

 

 

29,200,718

 

 

 

29,775,906

 

 

 

29,690,059

 

 

 

30,320,337

 

 

 

30,043,501

 

Short-term borrowings

 

 

1,363,959

 

 

 

667,760

 

 

 

1,154,829

 

 

 

1,425,928

 

 

 

1,629,538

 

Long-term debt

 

 

236,393

 

 

 

236,355

 

 

 

236,317

 

 

 

236,279

 

 

 

236,241

 

Other liabilities

 

 

690,503

 

 

 

713,662

 

 

 

693,707

 

 

 

814,754

 

 

 

746,392

 

Total liabilities

 

 

31,491,573

 

 

 

31,393,683

 

 

 

31,774,912

 

 

 

32,797,298

 

 

 

32,655,672

 

COMMON STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock net of treasury and capital surplus

 

 

2,041,597

 

 

 

2,049,215

 

 

 

2,049,184

 

 

 

2,044,611

 

 

 

2,037,258

 

Retained earnings

 

 

2,537,057

 

 

 

2,457,736

 

 

 

2,375,604

 

 

 

2,351,386

 

 

 

2,280,004

 

Accumulated other comprehensive (loss)

 

 

(657,936

)

 

 

(653,515

)

 

 

(621,127

)

 

 

(894,994

)

 

 

(762,786

)

Total common stockholders' equity

 

 

3,920,718

 

 

 

3,853,436

 

 

 

3,803,661

 

 

 

3,501,003

 

 

 

3,554,476

 

Total liabilities & stockholders' equity

 

$

35,412,291

 

 

$

35,247,119

 

 

$

35,578,573

 

 

$

36,298,301

 

 

$

36,210,148

 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

3,025,543

 

 

$

2,955,872

 

 

$

2,903,571

 

 

$

2,598,241

 

 

$

2,648,901

 

Tier 1 capital (g)

 

 

3,726,272

 

 

 

3,652,180

 

 

 

3,584,474

 

 

 

3,552,824

 

 

 

3,471,066

 

Common equity as a percentage of total assets

 

 

11.07

%

 

 

10.93

%

 

 

10.69

%

 

 

9.65

%

 

 

9.82

%

Tangible common equity ratio

 

 

8.77

%

 

 

8.61

%

 

 

8.37

%

 

 

7.34

%

 

 

7.50

%

Leverage (Tier 1) ratio (g)

 

 

10.71

%

 

 

10.49

%

 

 

10.10

%

 

 

10.01

%

 

 

9.64

%

Common equity tier 1 (CET1) ratio (g)

 

 

13.25

%

 

 

12.65

%

 

 

12.33

%

 

 

12.06

%

 

 

11.83

%

Tier 1 risk-based capital ratio (g)

 

 

13.25

%

 

 

12.65

%

 

 

12.33

%

 

 

12.06

%

 

 

11.83

%

Total risk-based capital ratio (g)

 

 

15.00

%

 

 

14.34

%

 

 

13.93

%

 

 

13.63

%

 

 

13.44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

Six Months Ended

 

(in thousands)

 

6/30/2024

 

 

3/31/2024

 

 

6/30/2023

 

 

6/30/2024

 

 

6/30/2023

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

9,839,115

 

 

$

9,806,126

 

 

$

9,955,499

 

 

$

9,822,621

 

 

$

9,947,860

 

Commercial real estate - owner occupied loans

 

 

3,083,561

 

 

 

3,082,085

 

 

 

3,099,326

 

 

 

3,082,826

 

 

 

3,072,140

 

Total commercial and industrial loans

 

 

12,922,676

 

 

 

12,888,211

 

 

 

13,054,825

 

 

 

12,905,447

 

 

 

13,020,000

 

Commercial real estate - income producing loans

 

 

4,090,000

 

 

 

3,989,675

 

 

 

3,860,409

 

 

 

4,039,834

 

 

 

3,723,441

 

Construction and land development loans

 

 

1,519,879

 

 

 

1,553,093

 

 

 

1,755,580

 

 

 

1,536,486

 

 

 

1,754,023

 

Residential mortgage loans

 

 

4,000,570

 

 

 

3,963,030

 

 

 

3,469,030

 

 

 

3,981,800

 

 

 

3,342,437

 

Consumer loans

 

 

1,384,236

 

 

 

1,416,154

 

 

 

1,515,150

 

 

 

1,400,195

 

 

 

1,532,430

 

Total loans

 

 

23,917,361

 

 

 

23,810,163

 

 

 

23,654,994

 

 

 

23,863,762

 

 

 

23,372,331

 

Loans held for sale

 

 

24,980

 

 

 

15,441

 

 

 

25,152

 

 

 

20,210

 

 

 

24,043

 

Securities (h)

 

 

8,214,172

 

 

 

8,197,410

 

 

 

9,007,821

 

 

 

8,205,791

 

 

 

9,072,071

 

Short-term investments

 

 

382,850

 

 

 

533,807

 

 

 

931,862

 

 

 

458,329

 

 

 

720,752

 

Earning assets

 

 

32,539,363

 

 

 

32,556,821

 

 

 

33,619,829

 

 

 

32,548,092

 

 

 

33,189,197

 

Allowance for loan losses

 

 

(316,039

)

 

 

(311,649

)

 

 

(311,328

)

 

 

(313,844

)

 

 

(310,409

)

Goodwill and other intangible assets

 

 

896,330

 

 

 

898,781

 

 

 

907,004

 

 

 

897,555

 

 

 

908,516

 

Other assets

 

 

1,879,226

 

 

 

1,957,916

 

 

 

1,989,891

 

 

 

1,918,572

 

 

 

1,897,809

 

Total assets

 

$

34,998,880

 

 

$

35,101,869

 

 

$

36,205,396

 

 

$

35,050,375

 

 

$

35,685,113

 

LIABILITIES AND COMMON STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

10,526,903

 

 

$

10,673,060

 

 

$

12,153,453

 

 

$

10,599,981

 

 

$

12,556,056

 

Interest-bearing transaction and savings deposits

 

 

10,728,709

 

 

 

10,803,196

 

 

 

10,478,436

 

 

 

10,765,952

 

 

 

10,563,961

 

Interest-bearing public fund deposits

 

 

2,967,284

 

 

 

3,119,406

 

 

 

2,981,701

 

 

 

3,043,345

 

 

 

3,070,681

 

Time deposits

 

 

4,846,201

 

 

 

4,965,294

 

 

 

3,759,309

 

 

 

4,905,748

 

 

 

2,893,779

 

Total interest-bearing deposits

 

 

18,542,194

 

 

 

18,887,896

 

 

 

17,219,446

 

 

 

18,715,045

 

 

 

16,528,421

 

Total deposits

 

 

29,069,097

 

 

 

29,560,956

 

 

 

29,372,899

 

 

 

29,315,026

 

 

 

29,084,477

 

Short-term borrowings

 

 

1,138,893

 

 

 

783,990

 

 

 

2,386,589

 

 

 

961,442

 

 

 

2,243,404

 

Long-term debt

 

 

236,374

 

 

 

236,336

 

 

 

242,004

 

 

 

236,355

 

 

 

242,050

 

Other liabilities

 

 

728,220

 

 

 

701,747

 

 

 

636,644

 

 

 

714,984

 

 

 

624,719

 

Common stockholders' equity

 

 

3,826,296

 

 

 

3,818,840

 

 

 

3,567,260

 

 

 

3,822,568

 

 

 

3,490,463

 

Total liabilities & stockholders' equity

 

$

34,998,880

 

 

$

35,101,869

 

 

$

36,205,396

 

 

$

35,050,375

 

 

$

35,685,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

6/30/2024

 

 

3/31/2024

 

 

6/30/2023

 

(dollars in millions)

 

Average
 Balance

 

 

Interest

 

 

Rate

 

 

Average
  Balance

 

 

Interest

 

 

Rate

 

 

Average
 Balance

 

 

Interest

 

 

Rate

 

AVERAGE EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans (TE) (i)

 

$

18,532.6

 

 

$

301.4

 

 

 

6.54

%

 

$

18,431.0

 

 

$

295.7

 

 

 

6.45

%

 

$

18,670.8

 

 

$

280.9

 

 

 

6.03

%

Residential mortgage loans

 

 

4,000.6

 

 

 

37.7

 

 

 

3.77

%

 

 

3,963.0

 

 

 

36.9

 

 

 

3.72

%

 

 

3,469.0

 

 

 

31.4

 

 

 

3.62

%

Consumer loans

 

 

1,384.2

 

 

 

30.6

 

 

 

8.90

%

 

 

1,416.2

 

 

 

31.3

 

 

 

8.88

%

 

 

1,515.2

 

 

 

30.7

 

 

 

8.14

%

Loan fees & late charges

 

 

—

 

 

 

2.0

 

 

 

0.00

%

 

 

—

 

 

 

1.0

 

 

 

0.00

%

 

 

—

 

 

 

0.0

 

 

 

0.00

%

Total loans (TE) (j) (k)

 

 

23,917.4

 

 

 

371.7

 

 

 

6.24

%

 

 

23,810.2

 

 

 

364.9

 

 

 

6.16

%

 

 

23,655.0

 

 

 

343.0

 

 

 

5.81

%

Loans held for sale

 

 

25.0

 

 

 

0.4

 

 

 

7.06

%

 

 

15.4

 

 

 

0.3

 

 

 

7.90

%

 

 

25.1

 

 

 

0.4

 

 

 

5.83

%

US Treasury and government agency securities

 

 

531.9

 

 

 

3.7

 

 

 

2.80

%

 

 

515.6

 

 

 

3.5

 

 

 

2.69

%

 

 

537.4

 

 

 

3.4

 

 

 

2.50

%

CMOs and mortgage backed securities

 

 

6,807.4

 

 

 

43.2

 

 

 

2.54

%

 

 

6,792.5

 

 

 

42.4

 

 

 

2.50

%

 

 

7,552.0

 

 

 

43.2

 

 

 

2.29

%

Municipals (TE)

 

 

851.4

 

 

 

6.3

 

 

 

2.96

%

 

 

865.8

 

 

 

6.4

 

 

 

2.96

%

 

 

894.9

 

 

 

6.7

 

 

 

3.00

%

Other securities

 

 

23.5

 

 

 

0.2

 

 

 

3.86

%

 

 

23.5

 

 

 

0.2

 

 

 

3.51

%

 

 

23.5

 

 

 

0.2

 

 

 

3.51

%

Total securities (TE) (l)

 

 

8,214.2

 

 

 

53.4

 

 

 

2.60

%

 

 

8,197.4

 

 

 

52.5

 

 

 

2.56

%

 

 

9,007.8

 

 

 

53.5

 

 

 

2.38

%

Total short-term investments

 

 

382.8

 

 

 

4.9

 

 

 

5.14

%

 

 

533.8

 

 

 

6.8

 

 

 

5.11

%

 

 

931.9

 

 

 

11.2

 

 

 

4.83

%

Average earning assets yield (TE)

 

$

32,539.4

 

 

$

430.4

 

 

 

5.31

%

 

$

32,556.8

 

 

$

424.5

 

 

 

5.24

%

 

$

33,619.8

 

 

$

408.1

 

 

 

4.87

%

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction and savings deposits

 

$

10,728.7

 

 

$

61.4

 

 

 

2.30

%

 

$

10,803.2

 

 

$

60.1

 

 

 

2.24

%

 

$

10,478.4

 

 

$

41.3

 

 

 

1.58

%

Time deposits

 

 

4,846.2

 

 

 

56.8

 

 

 

4.71

%

 

 

4,965.3

 

 

 

59.1

 

 

 

4.79

%

 

 

3,759.3

 

 

 

36.9

 

 

 

3.93

%

Public funds

 

 

2,967.3

 

 

 

26.4

 

 

 

3.58

%

 

 

3,119.4

 

 

 

28.3

 

 

 

3.65

%

 

 

2,981.7

 

 

 

24.3

 

 

 

3.27

%

Total interest-bearing deposits

 

 

18,542.2

 

 

 

144.6

 

 

 

3.14

%

 

 

18,887.9

 

 

 

147.5

 

 

 

3.14

%

 

 

17,219.4

 

 

 

102.5

 

 

 

2.39

%

Short-term borrowings

 

 

1,138.9

 

 

 

9.4

 

 

 

3.33

%

 

 

784.0

 

 

 

5.0

 

 

 

2.55

%

 

 

2,386.6

 

 

 

25.8

 

 

 

4.32

%

Long-term debt

 

 

236.4

 

 

 

3.1

 

 

 

5.19

%

 

 

236.3

 

 

 

3.0

 

 

 

5.19

%

 

 

242.0

 

 

 

3.1

 

 

 

5.11

%

Total borrowings

 

 

1,375.3

 

 

 

12.5

 

 

 

3.65

%

 

 

1,020.3

 

 

 

8.0

 

 

 

3.16

%

 

 

2,628.6

 

 

 

28.9

 

 

 

4.40

%

Total interest-bearing liabilities cost

 

 

19,917.5

 

 

 

157.1

 

 

 

3.17

%

 

 

19,908.2

 

 

 

155.5

 

 

 

3.14

%

 

 

19,848.0

 

 

 

131.4

 

 

 

2.65

%

Net interest-free funding sources

 

 

12,621.9

 

 

 

 

 

 

 

 

 

12,648.6

 

 

 

 

 

 

 

 

 

13,771.8

 

 

 

 

 

 

 

Total cost of funds

 

 

32,539.4

 

 

 

157.1

 

 

 

1.94

%

 

 

32,556.8

 

 

 

155.5

 

 

 

1.92

%

 

 

33,619.8

 

 

 

131.4

 

 

 

1.57

%

Net Interest Spread (TE)

 

 

 

 

$

273.3

 

 

 

2.14

%

 

 

 

 

$

269.0

 

 

 

2.10

%

 

 

 

 

$

276.7

 

 

 

2.21

%

Net Interest Margin (TE)

 

$

32,539.4

 

 

$

273.3

 

 

 

3.37

%

 

$

32,556.8

 

 

$

269.0

 

 

 

3.32

%

 

$

33,619.8

 

 

$

276.7

 

 

 

3.30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 $0.8 million, $0.3 million and $0.7 million for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

6/30/2024

 

 

6/30/2023

 

(dollars in millions)

 

Average
 Balance

 

 

Interest

 

 

Rate

 

 

Average
 Balance

 

 

Interest

 

 

Rate

 

AVERAGE EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans (TE) (i)

 

$

18,481.8

 

 

$

597.1

 

 

 

6.49

%

 

$

18,497.5

 

 

$

540.1

 

 

 

5.89

%

Residential mortgage loans

 

 

3,981.8

 

 

 

74.6

 

 

 

3.75

%

 

 

3,342.4

 

 

 

59.4

 

 

 

3.56

%

Consumer loans

 

 

1,400.2

 

 

 

61.9

 

 

 

8.89

%

 

 

1,532.4

 

 

 

59.9

 

 

 

7.88

%

Loan fees & late charges

 

 

—

 

 

 

3.0

 

 

 

0.00

%

 

 

—

 

 

 

(0.4

)

 

 

0.00

%

Total loans (TE) (j) (k)

 

 

23,863.8

 

 

 

736.6

 

 

 

6.20

%

 

 

23,372.3

 

 

 

659.0

 

 

 

5.68

%

Loans held for sale

 

 

20.2

 

 

 

0.7

 

 

 

7.38

%

 

 

24.0

 

 

 

0.7

 

 

 

5.53

%

US Treasury and government agency securities

 

 

523.8

 

 

 

7.2

 

 

 

2.75

%

 

 

539.3

 

 

 

6.7

 

 

 

2.49

%

CMOs and mortgage backed securities

 

 

6,799.9

 

 

 

85.6

 

 

 

2.52

%

 

 

7,609.7

 

 

 

86.5

 

 

 

2.27

%

Municipals (TE)

 

 

858.6

 

 

 

12.7

 

 

 

2.96

%

 

 

899.6

 

 

 

13.4

 

 

 

2.99

%

Other securities

 

 

23.5

 

 

 

0.4

 

 

 

3.68

%

 

 

23.5

 

 

 

0.4

 

 

 

3.50

%

Total securities (TE) (l)

 

 

8,205.8

 

 

 

105.9

 

 

 

2.58

%

 

 

9,072.1

 

 

 

107.0

 

 

 

2.36

%

Total short-term investments

 

 

458.3

 

 

 

11.7

 

 

 

5.12

%

 

 

720.8

 

 

 

16.6

 

 

 

4.63

%

Average earning assets yield (TE)

 

$

32,548.1

 

 

$

854.9

 

 

 

5.27

%

 

$

33,189.2

 

 

$

783.3

 

 

 

4.75

%

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction and savings deposits

 

$

10,766.0

 

 

$

121.5

 

 

 

2.27

%

 

$

10,563.9

 

 

$

68.6

 

 

 

1.31

%

Time deposits

 

 

4,905.7

 

 

 

115.9

 

 

 

4.75

%

 

 

2,893.8

 

 

 

50.3

 

 

 

3.51

%

Public funds

 

 

3,043.3

 

 

 

54.7

 

 

 

3.62

%

 

 

3,070.7

 

 

 

48.1

 

 

 

3.16

%

Total interest-bearing deposits

 

 

18,715.0

 

 

 

292.1

 

 

 

3.14

%

 

 

16,528.4

 

 

 

167.0

 

 

 

2.04

%

Short-term borrowings

 

 

961.4

 

 

 

14.4

 

 

 

3.01

%

 

 

2,243.4

 

 

 

45.8

 

 

 

4.12

%

Long-term debt

 

 

236.4

 

 

 

6.1

 

 

 

5.19

%

 

 

242.1

 

 

 

6.2

 

 

 

5.11

%

Total borrowings

 

 

1,197.8

 

 

 

20.5

 

 

 

3.44

%

 

 

2,485.5

 

 

 

52.0

 

 

 

4.21

%

Total interest-bearing liabilities cost

 

 

19,912.8

 

 

 

312.6

 

 

 

3.16

%

 

 

19,013.9

 

 

 

219.0

 

 

 

2.32

%

Net interest-free funding sources

 

 

12,635.3

 

 

 

 

 

 

 

 

 

14,175.3

 

 

 

 

 

 

 

Total cost of funds

 

 

32,548.1

 

 

 

312.6

 

 

 

1.93

%

 

 

33,189.2

 

 

 

219.0

 

 

 

1.33

%

Net Interest Spread (TE)

 

 

 

 

$

542.3

 

 

 

2.12

%

 

 

 

 

$

564.3

 

 

 

2.43

%

Net Interest Margin (TE)

 

$

32,548.1

 

 

$

542.3

 

 

 

3.34

%

 

$

33,189.2

 

 

$

564.3

 

 

 

3.42

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 $1.1 million and $1.4 million for the six months ended June 30, 2024 and 2023, 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

 

 

Six Months Ended

 

(dollars in thousands)

 

6/30/2024

 

 

3/31/2024

 

 

6/30/2023

 

 

6/30/2024

 

 

6/30/2023

 

Nonaccrual loans (m)

 

$

86,253

 

 

$

82,082

 

 

$

78,220

 

 

$

86,253

 

 

$

78,220

 

ORE and foreclosed assets

 

 

2,114

 

 

 

2,793

 

 

 

2,174

 

 

 

2,114

 

 

 

2,174

 

Total nonaccrual loans + ORE and foreclosed assets

 

$

88,367

 

 

$

84,875

 

 

$

80,394

 

 

$

88,367

 

 

$

80,394

 

Nonaccrual loans as a percentage of loans

 

 

0.36

%

 

 

0.34

%

 

 

0.33

%

 

 

0.36

%

 

 

0.33

%

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

 

 

0.37

%

 

 

0.35

%

 

 

0.34

%

 

 

0.37

%

 

 

0.34

%

Accruing loans 90 days past due

 

$

6,069

 

 

$

7,938

 

 

$

7,552

 

 

$

6,069

 

 

$

7,552

 

Accruing loans 90 days past due as a percentage of loans

 

 

0.03

%

 

 

0.03

%

 

 

0.03

%

 

 

0.03

%

 

 

0.03

%

Modified loans - still accruing

 

$

57,422

 

 

$

37,425

 

 

$

1,010

 

 

$

57,422

 

 

$

1,010

 

Modified loans - still accruing as a % of loans

 

 

0.24

%

 

 

0.16

%

 

 

0.00

%

 

 

0.24

%

 

 

0.00

%

PROVISION AND ALLOWANCE FOR CREDIT LOSSES:

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

313,726

 

 

$

307,907

 

 

$

309,385

 

 

$

307,907

 

 

$

307,789

 

Provision for loan losses

 

 

9,707

 

 

 

14,799

 

 

 

8,487

 

 

 

24,506

 

 

 

15,802

 

Charge-offs

 

 

(11,951

)

 

 

(23,366

)

 

 

(6,616

)

 

 

(35,317

)

 

 

(14,588

)

Recoveries

 

 

4,666

 

 

 

14,386

 

 

 

3,240

 

 

 

19,052

 

 

 

5,493

 

Net charge-offs

 

 

(7,285

)

 

 

(8,980

)

 

 

(3,376

)

 

 

(16,265

)

 

 

(9,095

)

Ending Balance

 

$

316,148

 

 

$

313,726

 

 

$

314,496

 

 

$

316,148

 

 

$

314,496

 

Reserve for unfunded lending commitments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

27,063

 

 

$

28,894

 

 

$

32,014

 

 

$

28,894

 

 

$

33,309

 

Provision for losses on unfunded lending commitments

 

 

(984

)

 

 

(1,831

)

 

 

(854

)

 

 

(2,815

)

 

 

(2,149

)

Ending balance

 

$

26,079

 

 

$

27,063

 

 

$

31,160

 

 

$

26,079

 

 

$

31,160

 

Total allowance for credit losses

 

$

342,227

 

 

$

340,789

 

 

$

345,656

 

 

$

342,227

 

 

$

345,656

 

Total provision for credit losses

 

$

8,723

 

 

$

12,968

 

 

$

7,633

 

 

$

21,691

 

 

$

13,653

 

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

 

 

1.32

%

 

 

1.31

%

 

 

1.32

%

 

 

1.32

%

 

 

1.32

%

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

 

 

1.43

%

 

 

1.42

%

 

 

1.45

%

 

 

1.43

%

 

 

1.45

%

Allowance for loan losses as a % of nonaccrual loans

 

 

366.54

%

 

 

382.21

%

 

 

402.07

%

 

 

366.54

%

 

 

402.07

%

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

4,112

 

 

$

5,254

 

 

$

1,233

 

 

$

9,366

 

 

$

4,588

 

Residential mortgage loans

 

 

(83

)

 

 

(146

)

 

 

(291

)

 

 

(229

)

 

 

(452

)

Consumer loans

 

 

3,256

 

 

 

3,872

 

 

 

2,434

 

 

 

7,128

 

 

 

4,959

 

Total net charge-offs

 

$

7,285

 

 

$

8,980

 

 

$

3,376

 

 

$

16,265

 

 

$

9,095

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

0.09

%

 

 

0.11

%

 

 

0.03

%

 

 

0.10

%

 

 

0.05

%

Residential mortgage loans

 

 

(0.01

)%

 

 

(0.01

)%

 

 

(0.03

)%

 

 

(0.01

)%

 

 

(0.03

)%

Consumer loans

 

 

0.95

%

 

 

1.10

%

 

 

0.64

%

 

 

1.02

%

 

 

0.65

%

Total net charge-offs as a percentage of average loans

 

 

0.12

%

 

 

0.15

%

 

 

0.06

%

 

 

0.14

%

 

 

0.08

%

AVERAGE LOANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

18,532,555

 

 

$

18,430,979

 

 

$

18,670,814

 

 

$

18,481,767

 

 

$

18,497,464

 

Residential mortgage loans

 

 

4,000,570

 

 

 

3,963,030

 

 

 

3,469,030

 

 

 

3,981,800

 

 

 

3,342,437

 

Consumer loans

 

 

1,384,236

 

 

 

1,416,154

 

 

 

1,515,150

 

 

 

1,400,195

 

 

 

1,532,430

 

Total average loans

 

$

23,917,361

 

 

$

23,810,163

 

 

$

23,654,994

 

 

$

23,863,762

 

 

$

23,372,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(m) Included in nonaccrual loans are nonaccruing modified loans to borrowers experiencing financial difficulties totaling $5.3 million at June 30, 2024, less than $0.2 million at March 31, 2024, and $1.6 million at June 30, 2023.

 

 

 

 

15

 

 

HANCOCK WHITNEY CORPORATION

 

ASSET QUALITY INFORMATION

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(dollars in thousands)

 

6/30/2024

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

Nonaccrual loans (m)

 

$

86,253

 

 

$

82,082

 

 

$

59,036

 

 

$

60,331

 

 

$

78,220

 

ORE and foreclosed assets

 

 

2,114

 

 

 

2,793

 

 

 

3,628

 

 

 

4,527

 

 

 

2,174

 

Total nonaccrual loans + ORE and foreclosed assets

 

$

88,367

 

 

$

84,875

 

 

$

62,664

 

 

$

64,858

 

 

$

80,394

 

Nonaccrual loans as a percentage of loans

 

 

0.36

%

 

 

0.34

%

 

 

0.25

%

 

 

0.25

%

 

 

0.33

%

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

 

 

0.37

%

 

 

0.35

%

 

 

0.26

%

 

 

0.27

%

 

 

0.34

%

Accruing loans 90 days past due

 

$

6,069

 

 

$

7,938

 

 

$

9,609

 

 

$

24,170

 

 

$

7,552

 

Accruing loans 90 days past due as a percentage of loans

 

 

0.03

%

 

 

0.03

%

 

 

0.04

%

 

 

0.10

%

 

 

0.03

%

Modified loans - still accruing

 

$

57,422

 

 

$

37,425

 

 

$

24,448

 

 

$

28,849

 

 

$

1,010

 

Modified loans - still accruing as a % of loans

 

 

0.24

%

 

 

0.16

%

 

 

0.10

%

 

 

0.12

%

 

 

0.00

%

PROVISION AND ALLOWANCE FOR CREDIT LOSSES:

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

313,726

 

 

$

307,907

 

 

$

306,291

 

 

$

314,496

 

 

$

309,385

 

Provision for loan losses

 

 

9,707

 

 

 

14,799

 

 

 

17,671

 

 

 

30,045

 

 

 

8,487

 

Charge-offs

 

 

(11,951

)

 

 

(23,366

)

 

 

(19,601

)

 

 

(41,234

)

 

 

(6,616

)

Recoveries

 

 

4,666

 

 

 

14,386

 

 

 

3,546

 

 

 

2,984

 

 

 

3,240

 

Net charge-offs

 

 

(7,285

)

 

 

(8,980

)

 

 

(16,055

)

 

 

(38,250

)

 

 

(3,376

)

Ending Balance

 

$

316,148

 

 

$

313,726

 

 

$

307,907

 

 

$

306,291

 

 

$

314,496

 

Reserve for unfunded lending commitments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

27,063

 

 

$

28,894

 

 

$

29,613

 

 

$

31,160

 

 

$

32,014

 

Provision for losses on unfunded lending commitments

 

 

(984

)

 

 

(1,831

)

 

 

(719

)

 

 

(1,547

)

 

 

(854

)

Ending balance

 

$

26,079

 

 

$

27,063

 

 

$

28,894

 

 

$

29,613

 

 

$

31,160

 

Total allowance for credit losses

 

$

342,227

 

 

$

340,789

 

 

$

336,801

 

 

$

335,904

 

 

$

345,656

 

Total provision for credit losses

 

$

8,723

 

 

$

12,968

 

 

$

16,952

 

 

$

28,498

 

 

$

7,633

 

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

 

 

1.32

%

 

 

1.31

%

 

 

1.29

%

 

 

1.28

%

 

 

1.32

%

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

 

 

1.43

%

 

 

1.42

%

 

 

1.41

%

 

 

1.40

%

 

 

1.45

%

Allowance for loan losses as a % of nonaccrual loans

 

 

366.54

%

 

 

382.21

%

 

 

521.56

%

 

 

507.68

%

 

 

402.07

%

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

4,112

 

 

$

5,254

 

 

$

12,747

 

 

$

35,506

 

 

$

1,233

 

Residential mortgage loans

 

 

(83

)

 

 

(146

)

 

 

(388

)

 

 

(383

)

 

 

(291

)

Consumer loans

 

 

3,256

 

 

 

3,872

 

 

 

3,696

 

 

 

3,127

 

 

 

2,434

 

Total net charge-offs

 

$

7,285

 

 

$

8,980

 

 

$

16,055

 

 

$

38,250

 

 

$

3,376

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

0.09

%

 

 

0.11

%

 

 

0.27

%

 

 

0.75

%

 

 

0.03

%

Residential mortgage loans

 

 

(0.01

)%

 

 

(0.01

)%

 

 

(0.04

)%

 

 

(0.04

)%

 

 

(0.03

)%

Consumer loans

 

 

0.95

%

 

 

1.10

%

 

 

1.02

%

 

 

0.84

%

 

 

0.64

%

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

 

 

0.12

%

 

 

0.15

%

 

 

0.27

%

 

 

0.64

%

 

 

0.06

%

AVERAGE LOANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

18,532,555

 

 

$

18,430,979

 

 

$

18,548,884

 

 

$

18,678,969

 

 

$

18,670,814

 

Residential mortgage loans

 

 

4,000,570

 

 

 

3,963,030

 

 

 

3,803,702

 

 

 

3,669,922

 

 

 

3,469,030

 

Consumer loans

 

 

1,384,236

 

 

 

1,416,154

 

 

 

1,443,095

 

 

 

1,481,833

 

 

 

1,515,150

 

Total average loans

 

$

23,917,361

 

 

$

23,810,163

 

 

$

23,795,681

 

 

$

23,830,724

 

 

$

23,654,994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(m) Included in nonaccrual loans are nonaccruing modified loans to borrowers experiencing financial difficulties totaling $5.3 million at June 30, 2024, less than $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 June 30, 2023.

 

 

 

16

 

 

 

HANCOCK WHITNEY CORPORATION

 

Appendix A to the Earnings Release

 

Reconciliation of Non-GAAP Measure

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(in thousands)

 

6/30/2024

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

6/30/2024

 

 

6/30/2023

 

Net Income (GAAP)

 

$

114,557

 

 

$

108,612

 

 

$

50,603

 

 

$

97,738

 

 

$

117,794

 

 

$

223,169

 

 

$

244,261

 

Provision for credit losses

 

 

8,723

 

 

 

12,968

 

 

 

16,952

 

 

 

28,498

 

 

 

7,633

 

 

 

21,691

 

 

 

13,653

 

Income tax expense

 

 

30,308

 

 

 

24,720

 

 

 

11,705

 

 

 

24,297

 

 

 

29,571

 

 

 

55,028

 

 

 

61,524

 

Pre-provision net revenue

 

 

153,588

 

 

 

146,300

 

 

 

79,260

 

 

 

150,533

 

 

 

154,998

 

 

 

299,888

 

 

 

319,438

 

Taxable equivalent adjustment (n)

 

 

2,828

 

 

 

2,830

 

 

 

2,834

 

 

 

2,852

 

 

 

2,837

 

 

 

5,658

 

 

 

5,421

 

Pre-provision net revenue (TE)

 

 

156,416

 

 

 

149,130

 

 

 

82,094

 

 

 

153,385

 

 

 

157,835

 

 

 

305,546

 

 

 

324,859

 

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

 

 

 

—

 

 

 

—

 

 

 

3,800

 

 

 

—

 

Adjusted pre-provision net revenue (TE)

 

$

156,416

 

 

$

152,930

 

 

$

157,471

 

 

$

153,385

 

 

$

157,835

 

 

$

309,346

 

 

$

324,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(in thousands)

 

6/30/2024

 

 

3/31/2024

 

 

12/31/2023

 

 

9/30/2023

 

 

6/30/2023

 

 

6/30/2024

 

 

6/30/2023

 

Net interest income

 

$

270,430

 

 

$

266,171

 

 

$

269,460

 

 

$

269,234

 

 

$

273,911

 

 

$

536,601

 

 

$

558,905

 

Noninterest income

 

 

89,174

 

 

 

87,851

 

 

 

38,951

 

 

 

85,974

 

 

 

83,225

 

 

 

177,025

 

 

 

163,555

 

Total GAAP revenue

 

 

359,604

 

 

 

354,022

 

 

 

308,411

 

 

 

355,208

 

 

 

357,136

 

 

 

713,626

 

 

 

722,460

 

Taxable equivalent adjustment (n)

 

 

2,828

 

 

 

2,830

 

 

 

2,834

 

 

 

2,852

 

 

 

2,837

 

 

 

5,658

 

 

 

5,421

 

Total revenue (TE)

 

 

362,432

 

 

 

356,852

 

 

 

311,245

 

 

 

358,060

 

 

 

359,973

 

 

 

719,284

 

 

 

727,881

 

Adjustments from supplemental disclosure items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of parking facility

 

 

—

 

 

 

—

 

 

 

(16,126

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loss on securities portfolio restructure

 

 

—

 

 

 

—

 

 

 

65,380

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Adjusted revenue (TE)

 

$

362,432

 

 

$

356,852

 

 

$

360,499

 

 

$

358,060

 

 

$

359,973

 

 

$

719,284

 

 

$

727,881

 

GAAP Noninterest expense

 

$

206,016

 

 

$

207,722

 

 

$

229,151

 

 

$

204,675

 

 

$

202,138

 

 

$

413,738

 

 

$

403,022

 

Amortization of Intangibles

 

 

(2,389

)

 

 

(2,526

)

 

 

(2,672

)

 

 

(2,813

)

 

 

(2,957

)

 

 

(4,915

)

 

 

(6,071

)

Adjustments from supplemental disclosure items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FDIC special assessment

 

 

—

 

 

 

(3,800

)

 

 

(26,123

)

 

 

—

 

 

 

—

 

 

 

(3,800

)

 

 

—

 

Adjusted noninterest expense for efficiency

 

$

203,627

 

 

$

201,396

 

 

$

200,356

 

 

$

201,862

 

 

$

199,181

 

 

$

405,023

 

 

$

396,951

 

Efficiency ratio (o)

 

 

56.18

%

 

 

56.44

%

 

 

55.58

%

 

 

56.38

%

 

 

55.33

%

 

 

56.31

%

 

 

54.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

17