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Published: 2022-04-19 00:00:00 ET
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Exhibit 99.1

img88180657_0.jpg 

 

FOR IMMEDIATE RELEASE

April 19, 2022

 

 

For more information

Trisha Voltz Carlson, EVP, Investor Relations Manager

504.299.5208 or trisha.carlson@hancockwhitney.com

 

 

Hancock Whitney reports first quarter 2022 EPS of $1.40

 

GULFPORT, Miss. (April 19, 2022) — Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the first quarter of 2022. Net income for the first quarter of 2022 totaled $123.5 million, or $1.40 per diluted common share (EPS), compared to $137.7 million, or $1.55 per diluted common share, in the fourth quarter of 2021. The first quarter of 2022 did not include any nonoperating items, while the fourth quarter of 2021 included ($4.9) million, or ($0.04) per share after-tax, of net nonoperating income items. The company reported net income for the first quarter of 2021 of $107.2 million, or $1.21 per diluted common share.

 

First Quarter 2022 Highlights

Operating pre-provision net revenue (PPNR) totaled $134.5 million, up slightly, linked-quarter
Core loan growth of $385.3 million, or 8% linked-quarter annualized (LQA), more than offset the impact of $196.2 million in PPP loan forgiveness, leading to an overall increase in total loans of $189.1 million
Deposits increased $33.8 million, or less than 1% LQA, as the mix shifted from interest-bearing to noninterest-bearing
ACL coverage remained strong at 1.63% (1.66% excluding PPP loans)
Nonperforming loans and criticized commercial loans declined 24% and 2%, respectively linked-quarter
NIM widened 1 basis point (bp) to 2.81%
CET1 ratio estimated at 11.12%, up 3 bps; TCE ratio 7.15%, down 56 bps

 

“We are pleased to report another solid quarter and a good start to 2022,” said John M. Hairston, President and CEO. “Despite the ongoing challenges in today’s environment, our first quarter’s results were on track, with core loan growth of 8% LQA, stable deposits, the beginning of a widening NIM, historically low levels of asset quality metrics, continued expense management and solid capital levels. We will continue to execute our strategic plan and adjust for any challenges in today’s ever changing environment.”

 

Loans

Core loans increased $385.3 million, up 8% LQA, from December 31, 2021, more than offsetting the impact of $196.2 million in PPP loan forgiveness. Markets across the footprint grew reflected by net increases in the Eastern Region, up $300 million linked-quarter, and an increase of $107 million in the Western Region.

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The Central Region was virtually unchanged from year-end 2021. Specialty lines, such as Equipment Finance, grew $90 million linked-quarter while amortizing only indirect and energy portfolios were down $33 million and $16 million, respectively. Healthcare loans decreased $75 million, net, linked-quarter. Management continues to expect core loans to grow by 6-8% in 2022, with quarterly results reflecting normal seasonality.

 

Total loans were $21.3 billion at March 31, 2022, up $189.1 million from December 31, 2021. Average loans totaled $21.1 billion for the first quarter of 2022, up $351.9 million, or 2%, linked-quarter.

 

Deposits

Total deposits at March 31, 2022 were $30.5 billion, up $33.8 million, or nearly flat, from December 31, 2021. During the quarter, seasonal runoff in public funds and interest-bearing transaction and savings deposits was more than offset by an increase in both commercial and consumer noninterest bearing demand deposit accounts (DDAs).

 

DDAs totaled $15.0 billion at March 31, 2022, up $583.9 million, or 4%, from December 31, 2021 and comprised almost half (49%) of total period-end deposits. Interest-bearing transaction and savings deposits totaled $11.5 billion at the end of the first quarter of 2022, a decrease of $188.9 million, or 2%, linked-quarter. Compared to December 31, 2021, time deposits of $1.0 billion were down $80.9 million, or 7%. Interest-bearing public fund deposits decreased $280.3 million, or 9%, linked-quarter, ending March 31, 2022 at $3.0 billion.

 

Average deposits for the first quarter of 2022 were $30.0 billion, up $279.1 million, or 1%, linked-quarter. Management expects 2022 period-end deposit levels to remain flat to slightly down compared to year-end 2021.

 

Asset Quality

The total allowance for credit losses (ACL) was $348.6 million at March 31, 2022, down $22.8 million from December 31, 2021. During the first quarter of 2022, the company recorded a negative provision for credit losses of $22.5 million, compared to a negative provision of $28.4 million in the fourth quarter of 2021. Net charge-offs totaled $0.3 million in the first quarter of 2022, or 0.01% of average total loans on an annualized basis, flat from $0.7 million, or 0.01% of average total loans in the fourth quarter of 2021. The ratio of ACL to period-end loans was 1.63% (1.66% excluding PPP loans) at March 31, 2022, compared to 1.76% (1.80% excluding PPP loans) at December 31, 2021.

 

The company’s overall asset quality metrics continued to improve and currently sit at historically low levels, with commercial criticized and total nonperforming loans down 2% and 24%, respectively, linked-quarter. Nonperforming assets (NPAs) totaled $51.7 million at March 31, 2022, down $15.2 million, or 23%, from December 31, 2021. During the first quarter of 2022, total nonperforming loans decreased $14.0 million, or 24%, while ORE and foreclosed assets were down $1.2 million, or 16% linked-quarter. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 0.24% at March 31, 2022, down 8 bps from December 31, 2021.

 

 

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Net Interest Income and Net Interest Margin (NIM)

Net interest income (TE) for the first quarter of 2022 was $231.0 million, a decrease of $0.9 million, or less than 1%, from the fourth quarter of 2021.

 

The net interest margin (NIM) (TE) was 2.81% in the first quarter of 2022, an increase of 1 bp linked-quarter. Changes related to the March 2022 increase in rates and a shift in the mix of earning assets led to a 7 basis point improvement in the earning asset yield, however that was mostly offset by the impact from the forgiveness of almost $200 million in PPP loans (-6 bps).

 

Average earning assets were $33.2 billion for the first quarter of 2022, up $288.3 million, or 1%, from the fourth quarter of 2021. Management expects the NIM to continue widening in 2022 due to expected future rate hikes.

 

Noninterest Income

Noninterest income totaled $83.4 million for the first quarter of 2022, down $6.2 million, or 7%, from the fourth quarter of 2021. In the fourth quarter of 2021, noninterest income included a $3.6 million gain from storm-related insurance proceeds (nonoperating item). Adjusting for these items, noninterest income for the first quarter of 2022 was down $2.6 million, or 3%, linked-quarter.

 

Service charges on deposits were up $0.3 million, or 2%, from the fourth quarter of 2021. The company disclosed via a press release on March 25, 2022 that it would eliminate consumer (retail) non-sufficient funds (NSF) fees and certain overdraft fees by year-end 2022. Those fees are included in the company’s service charges on deposits total.

 

Bankcard and ATM fees were down $0.2 million, or 1%, from the fourth quarter of 2021. Investment and annuity income and insurance fees were down $0.1 million, or 2%, linked-quarter. Trust fees were down $0.3 million, or 2% linked-quarter.

 

Fees from secondary mortgage operations totaled $3.7 million for the first quarter of 2022, down $1.7 million, or 31%, linked-quarter. Management expects a continued decline in secondary mortgage fees as rates begin to rise leading to a slowdown in activity compared to 2020’s refinance “boom”.

 

Other noninterest income totaled $14.9 million, down $4.2 million, or 22%, from the fourth quarter of 2021. The decrease is primarily related to the gain noted last quarter.

 

Noninterest Expense & Taxes

Noninterest expense totaled $179.9 million, down $2.5 million, or 1% linked-quarter. In the fourth quarter of 2021, noninterest expense included $1.3 million of net nonoperating expenses related primarily to partial reversals of accruals for Hurricane Ida expense and closed branch writedowns. Excluding these items, operating expense for the first quarter of 2022 was down $3.9 million, or 2%, linked-quarter.

 

Personnel expense totaled $107.4 million in the first quarter of 2022, down $0.7 million, or 1%, linked-quarter. The decrease is mainly related to ongoing savings associated with efficiency initiatives implemented in 2021.

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Occupancy and equipment expense totaled $16.5 million in the first quarter of 2022, up $0.5 million, or 3%, from the fourth quarter of 2021. Amortization of intangibles totaled $3.7 million for the first quarter of 2022, down $0.2 million, or 4%, linked-quarter.

 

Gains on sales of ORE and other foreclosed assets exceeded expenses by $1.8 million in the first quarter of 2022, compared to net expense of $0.2 million in the fourth quarter of 2021. Other operating expense totaled $54.0 million in the first quarter of 2022, down $0.1 million, or less than 1%, linked-quarter.

 

The effective income tax rate for first quarter 2022 was 20.1%.

 

Capital

Common stockholders’ equity at March 31, 2022 totaled $3.5 billion, down $219.4 million, or 6%, from December 31, 2021. The tangible common equity (TCE) ratio was 7.15%, down 56 bps from December 31, 2021, mainly the result of a securities portfolio adjustment in AOCI. The company’s CET1 ratio is estimated to be 11.12% at March 31, 2022, up 3 bps linked-quarter. During the first quarter of 2022, the company repurchased 350,000 shares of its common stock at an average price of $52.79 per share. This stock repurchase is part of the Board authorization to repurchase up to 4,338,000 shares of the company’s common stock, set to expire December 31, 2022. To-date the company has repurchased 799,876 shares under this authorization.

 

Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 4:00 p.m. Central Time on Tuesday, April 19, 2022 to review these results. A live listen-only webcast of the call will be available under the Investor Relations section of Hancock Whitney’s website at investors.hancockwhitney.com. A link to the release with additional financial tables, and a link to a slide presentation related to first quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial 844-200-6205 or 646-904-5544, access code 191325.

 

An audio archive of the conference call will be available under the Investor Relations section of our website. A replay of the call will also be available through April 26, 2022 by dialing 866-813-9403 or 929-458-6194, access code 061822.

 

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; certain insurance services; and mortgage services. The company also operates a loan production office in Nashville, Tennessee. 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

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statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. The reconciliations of those measures to GAAP measures are provided either in the financial tables or in Appendix A thereto.

 

Consistent with the provisions of subpart 229.1400 of the Securities and Exchange Commission’s Regulation S-K, “Disclosures by Bank and Savings and Loan Registrants,” the company presents net interest income, net interest margin and efficiency ratios on a fully taxable equivalent (“TE”) basis. The TE basis adjusts for the tax-favored status of net interest income from certain loans and investments using the statutory federal tax rate to increase tax-exempt interest income to a taxable equivalent basis. The company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

 

The company presents certain additional non-GAAP financial measures to assist the reader with a better understanding of the company’s performance period over period, as well as to provide investors with assistance in understanding the success management has experienced in executing its strategic initiatives. These non-GAAP measures may reference the concept “operating.” The company uses 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 the company’s business.

 

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, loan growth expectations, management’s predictions about charge-offs for loans, the impact of the COVID-19 pandemic on the economy and our operations, the impacts related to Russia’s military action in Ukraine, 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; the ongoing 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 the change in the referenced rate reform, deposit trends, credit quality trends, the impact of natural or man-made disasters, the impact of PPP loans and forgiveness on our results, changes in interest rates, inflation, 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.”

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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, 2021 and in other periodic reports that we file with the SEC.

 

 

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HANCOCK WHITNEY CORPORATION

 

QUARTERLY FINANCIAL HIGHLIGHTS

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

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

 

3/31/2022

 

 

12/31/2021

 

 

9/30/2021

 

 

6/30/2021

 

 

3/31/2021

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

228,463

 

 

$

229,296

 

 

$

234,709

 

 

$

234,643

 

 

$

234,587

 

Net interest income (TE) (a)

 

 

231,008

 

 

 

231,931

 

 

 

237,477

 

 

 

237,497

 

 

 

237,509

 

Provision for credit losses

 

 

(22,527

)

 

 

(28,399

)

 

 

(26,955

)

 

 

(17,229

)

 

 

(4,911

)

Noninterest income

 

 

83,432

 

 

 

89,612

 

 

 

93,361

 

 

 

94,272

 

 

 

87,089

 

Noninterest expense

 

 

179,939

 

 

 

182,462

 

 

 

194,703

 

 

 

236,770

 

 

 

193,072

 

Income tax expense

 

 

31,005

 

 

 

27,102

 

 

 

30,740

 

 

 

20,656

 

 

 

26,343

 

Net income

 

$

123,478

 

 

$

137,743

 

 

$

129,582

 

 

$

88,718

 

 

$

107,172

 

For informational purposes - included above, pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Nonoperating item included in noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Gain on hurricane-related insurance settlement

 

$

 

 

$

3,600

 

 

$

 

 

$

 

 

$

 

   Gain on sale of Hancock Horizon Funds

 

 

 

 

 

 

 

 

4,576

 

 

 

 

 

 

 

   Gain on sale of Mastercard Class B common stock

 

 

 

 

 

 

 

 

 

 

 

2,800

 

 

 

 

  Nonoperating items included in noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Efficiency initiatives

 

 

 

 

 

(649

)

 

 

(1,867

)

 

 

40,812

 

 

 

 

   Hurricane related expenses

 

 

 

 

 

(680

)

 

 

5,092

 

 

 

 

 

 

 

   Loss on redemption of subordinated notes

 

 

 

 

 

 

 

 

 

 

 

4,165

 

 

 

 

PERIOD-END BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

21,323,341

 

 

$

21,134,282

 

 

$

20,886,015

 

 

$

21,148,530

 

 

$

21,664,859

 

Securities

 

 

8,481,095

 

 

 

8,552,449

 

 

 

8,308,622

 

 

 

8,633,133

 

 

 

8,005,990

 

Earning assets

 

 

32,997,323

 

 

 

33,610,435

 

 

 

32,348,036

 

 

 

32,075,450

 

 

 

32,134,637

 

Total assets

 

 

36,317,291

 

 

 

36,531,205

 

 

 

35,318,308

 

 

 

35,098,709

 

 

 

35,072,643

 

Noninterest-bearing deposits

 

 

14,976,670

 

 

 

14,392,808

 

 

 

13,653,376

 

 

 

13,406,385

 

 

 

13,174,911

 

Total deposits

 

 

30,499,709

 

 

 

30,465,897

 

 

 

29,208,157

 

 

 

29,273,107

 

 

 

29,210,520

 

Common stockholders' equity

 

 

3,450,951

 

 

 

3,670,352

 

 

 

3,629,766

 

 

 

3,562,901

 

 

 

3,416,903

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

21,122,038

 

 

$

20,770,130

 

 

$

20,941,173

 

 

$

21,388,814

 

 

$

21,745,298

 

Securities (b)

 

 

8,687,758

 

 

 

8,378,258

 

 

 

8,368,824

 

 

 

8,194,812

 

 

 

7,468,541

 

Earning assets

 

 

33,201,926

 

 

 

32,913,659

 

 

 

32,097,381

 

 

 

32,195,515

 

 

 

31,015,637

 

Total assets

 

 

36,003,803

 

 

 

35,829,027

 

 

 

35,207,960

 

 

 

35,165,684

 

 

 

34,078,200

 

Noninterest-bearing deposits

 

 

14,363,324

 

 

 

14,126,335

 

 

 

13,535,961

 

 

 

13,237,796

 

 

 

12,374,235

 

Total deposits

 

 

30,029,793

 

 

 

29,750,665

 

 

 

29,237,306

 

 

 

29,228,809

 

 

 

28,138,763

 

Common stockholders' equity

 

 

3,607,061

 

 

 

3,642,003

 

 

 

3,606,087

 

 

 

3,488,592

 

 

 

3,441,466

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted

 

$

1.40

 

 

$

1.55

 

 

$

1.46

 

 

$

1.00

 

 

$

1.21

 

Cash dividends per share

 

 

0.27

 

 

 

0.27

 

 

 

0.27

 

 

 

0.27

 

 

 

0.27

 

Book value per share (period-end)

 

 

39.91

 

 

 

42.31

 

 

 

41.81

 

 

 

41.03

 

 

 

39.38

 

Tangible book value per share (period-end)

 

 

29.25

 

 

 

31.64

 

 

 

31.10

 

 

 

30.27

 

 

 

28.57

 

Weighted average number of shares - diluted

 

 

86,936

 

 

 

87,132

 

 

 

87,006

 

 

 

86,990

 

 

 

86,805

 

Period-end number of shares

 

 

86,460

 

 

 

86,749

 

 

 

86,823

 

 

 

86,847

 

 

 

86,777

 

Market data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High sales price

 

$

59.82

 

 

$

53.61

 

 

$

48.19

 

 

$

50.69

 

 

$

47.37

 

Low sales price

 

 

50.25

 

 

 

45.06

 

 

 

39.07

 

 

 

40.25

 

 

 

32.52

 

Period-end closing price

 

 

52.15

 

 

 

50.02

 

 

 

47.12

 

 

 

44.44

 

 

 

42.01

 

Trading volume

 

 

29,005

 

 

 

23,889

 

 

 

22,482

 

 

 

25,570

 

 

 

28,963

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.39

%

 

 

1.53

%

 

 

1.46

%

 

 

1.01

%

 

 

1.28

%

Return on average common equity

 

 

13.88

%

 

 

15.00

%

 

 

14.26

%

 

 

10.20

%

 

 

12.63

%

Return on average tangible common equity

 

 

18.66

%

 

 

20.13

%

 

 

19.22

%

 

 

13.94

%

 

 

17.38

%

Tangible common equity ratio (c)

 

 

7.15

%

 

 

7.71

%

 

 

7.85

%

 

 

7.70

%

 

 

7.26

%

Net interest margin (TE)

 

 

2.81

%

 

 

2.80

%

 

 

2.94

%

 

 

2.96

%

 

 

3.09

%

Noninterest income as a percentage of total revenue (TE)

 

 

26.53

%

 

 

27.87

%

 

 

28.22

%

 

 

28.41

%

 

 

26.83

%

Efficiency ratio (d)

 

 

56.03

%

 

 

56.57

%

 

 

57.44

%

 

 

57.01

%

 

 

58.12

%

Average loan/deposit ratio

 

 

70.34

%

 

 

69.81

%

 

 

71.62

%

 

 

73.18

%

 

 

77.28

%

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

 

 

1.49

%

 

 

1.62

%

 

 

1.78

%

 

 

1.89

%

 

 

1.96

%

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

 

 

1.63

%

 

 

1.76

%

 

 

1.92

%

 

 

2.03

%

 

 

2.11

%

Annualized net charge-offs to average loans

 

 

0.01

%

 

 

0.01

%

 

 

0.03

%

 

 

0.20

%

 

 

0.34

%

Allowance for loan losses to nonperforming loans + accruing loans 90 days past due

 

 

640.81

%

 

 

527.59

%

 

 

506.17

%

 

 

415.00

%

 

 

354.09

%

FTE headcount

 

 

3,543

 

 

 

3,486

 

 

 

3,429

 

 

 

3,626

 

 

 

3,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

7

 


 

(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

 

(in thousands, except per share data)

 

3/31/2022

 

 

12/31/2021

 

 

9/30/2021

 

 

6/30/2021

 

 

3/31/2021

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

236,786

 

 

$

238,756

 

 

$

244,417

 

 

$

248,300

 

 

$

250,785

 

Interest income (TE) (f)

 

 

239,331

 

 

 

241,391

 

 

 

247,185

 

 

 

251,154

 

 

 

253,707

 

Interest expense

 

 

8,323

 

 

 

9,460

 

 

 

9,708

 

 

 

13,657

 

 

 

16,198

 

Net interest income (TE)

 

 

231,008

 

 

 

231,931

 

 

 

237,477

 

 

 

237,497

 

 

 

237,509

 

Provision for credit losses

 

 

(22,527

)

 

 

(28,399

)

 

 

(26,955

)

 

 

(17,229

)

 

 

(4,911

)

Noninterest income

 

 

83,432

 

 

 

89,612

 

 

 

93,361

 

 

 

94,272

 

 

 

87,089

 

Noninterest expense

 

 

179,939

 

 

 

182,462

 

 

 

194,703

 

 

 

236,770

 

 

 

193,072

 

Income before income taxes

 

 

154,483

 

 

 

164,845

 

 

 

160,322

 

 

 

109,374

 

 

 

133,515

 

Income tax expense

 

 

31,005

 

 

 

27,102

 

 

 

30,740

 

 

 

20,656

 

 

 

26,343

 

Net income

 

$

123,478

 

 

$

137,743

 

 

$

129,582

 

 

$

88,718

 

 

$

107,172

 

For informational purposes - included above, pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

  Nonoperating item included in noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Gain on hurricane-related insurance settlement

 

$

 

 

$

3,600

 

 

$

 

 

$

 

 

$

 

   Gain on sale of Hancock Horizon Funds

 

 

 

 

 

 

 

 

4,576

 

 

 

 

 

 

 

   Gain on sale of Mastercard Class B common stock

 

 

 

 

 

 

 

 

 

 

 

2,800

 

 

 

 

  Nonoperating items included in noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Efficiency initiatives

 

 

 

 

 

(649

)

 

 

(1,867

)

 

 

40,812

 

 

 

 

   Hurricane related expenses

 

 

 

 

 

(680

)

 

 

5,092

 

 

 

 

 

 

 

   Loss on redemption of subordinated notes

 

 

 

 

 

 

 

 

 

 

 

4,165

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

21,674

 

 

$

21,346

 

 

$

21,159

 

 

$

19,381

 

 

$

19,146

 

Trust fees

 

 

15,279

 

 

 

15,547

 

 

 

16,041

 

 

 

16,307

 

 

 

15,003

 

Bank card and ATM fees

 

 

20,396

 

 

 

20,638

 

 

 

19,833

 

 

 

20,483

 

 

 

18,120

 

Investment and annuity fees and insurance commissions

 

 

7,427

 

 

 

7,546

 

 

 

7,167

 

 

 

7,331

 

 

 

7,458

 

Secondary mortgage market operations

 

 

3,746

 

 

 

5,456

 

 

 

6,972

 

 

 

12,556

 

 

 

11,710

 

Other income

 

 

14,910

 

 

 

19,079

 

 

 

22,189

 

 

 

18,214

 

 

 

15,652

 

Total noninterest income

 

$

83,432

 

 

$

89,612

 

 

$

93,361

 

 

$

94,272

 

 

$

87,089

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

$

107,396

 

 

$

108,128

 

 

$

111,978

 

 

$

142,654

 

 

$

119,615

 

Net occupancy and equipment expense

 

 

16,547

 

 

 

16,047

 

 

 

16,868

 

 

 

17,347

 

 

 

17,691

 

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

 

 

(1,764

)

 

 

246

 

 

 

(376

)

 

 

(86

)

 

 

6

 

Other expense

 

 

54,012

 

 

 

54,122

 

 

 

62,151

 

 

 

72,610

 

 

 

51,341

 

Amortization of intangibles

 

 

3,748

 

 

 

3,919

 

 

 

4,082

 

 

 

4,245

 

 

 

4,419

 

Total noninterest expense

 

$

179,939

 

 

$

182,462

 

 

$

194,703

 

 

$

236,770

 

 

$

193,072

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.40

 

 

$

1.56

 

 

$

1.46

 

 

$

1.00

 

 

$

1.21

 

Diluted

 

 

1.40

 

 

 

1.55

 

 

 

1.46

 

 

 

1.00

 

 

 

1.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

9

 


 

 

HANCOCK WHITNEY CORPORATION

 

PERIOD-END BALANCE SHEET

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

3/31/2022

 

 

12/31/2021

 

 

9/30/2021

 

 

6/30/2021

 

 

3/31/2021

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

9,584,480

 

 

$

9,612,460

 

 

$

9,416,990

 

 

$

9,532,710

 

 

$

10,091,342

 

Commercial real estate - owner occupied loans

 

 

2,868,233

 

 

 

2,821,246

 

 

 

2,812,926

 

 

 

2,809,868

 

 

 

2,795,104

 

Total commercial and industrial loans

 

 

12,452,713

 

 

 

12,433,706

 

 

 

12,229,916

 

 

 

12,342,578

 

 

 

12,886,446

 

Commercial real estate - income producing loans

 

 

3,563,299

 

 

 

3,464,626

 

 

 

3,467,939

 

 

 

3,419,028

 

 

 

3,411,028

 

Construction and land development loans

 

 

1,286,655

 

 

 

1,228,670

 

 

 

1,213,991

 

 

 

1,295,036

 

 

 

1,122,141

 

Residential mortgage loans

 

 

2,462,900

 

 

 

2,423,890

 

 

 

2,351,053

 

 

 

2,412,459

 

 

 

2,488,792

 

Consumer loans

 

 

1,557,774

 

 

 

1,583,390

 

 

 

1,623,116

 

 

 

1,679,429

 

 

 

1,756,452

 

Total loans

 

 

21,323,341

 

 

 

21,134,282

 

 

 

20,886,015

 

 

 

21,148,530

 

 

 

21,664,859

 

Loans held for sale

 

 

59,877

 

 

 

93,069

 

 

 

90,618

 

 

 

90,002

 

 

 

124,677

 

Securities

 

 

8,481,095

 

 

 

8,552,449

 

 

 

8,308,622

 

 

 

8,633,133

 

 

 

8,005,990

 

Short-term investments

 

 

3,133,010

 

 

 

3,830,635

 

 

 

3,062,781

 

 

 

2,203,785

 

 

 

2,339,111

 

Earning assets

 

 

32,997,323

 

 

 

33,610,435

 

 

 

32,348,036

 

 

 

32,075,450

 

 

 

32,134,637

 

Allowance for loan losses

 

 

(317,843

)

 

 

(342,065

)

 

 

(371,521

)

 

 

(399,668

)

 

 

(424,360

)

Goodwill and other intangible assets

 

 

921,932

 

 

 

925,679

 

 

 

929,599

 

 

 

933,681

 

 

 

937,926

 

Other assets

 

 

2,715,879

 

 

 

2,337,156

 

 

 

2,412,194

 

 

 

2,489,246

 

 

 

2,424,440

 

Total assets

 

$

36,317,291

 

 

$

36,531,205

 

 

$

35,318,308

 

 

$

35,098,709

 

 

$

35,072,643

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

14,976,670

 

 

$

14,392,808

 

 

$

13,653,376

 

 

$

13,406,385

 

 

$

13,174,911

 

Interest-bearing transaction and savings deposits

 

 

11,460,993

 

 

 

11,649,855

 

 

 

11,291,878

 

 

 

11,308,744

 

 

 

11,200,412

 

Interest-bearing public fund deposits

 

 

3,014,307

 

 

 

3,294,607

 

 

 

3,055,388

 

 

 

3,206,799

 

 

 

3,198,523

 

Time deposits

 

 

1,047,739

 

 

 

1,128,627

 

 

 

1,207,515

 

 

 

1,351,179

 

 

 

1,636,674

 

Total interest-bearing deposits

 

 

15,523,039

 

 

 

16,073,089

 

 

 

15,554,781

 

 

 

15,866,722

 

 

 

16,035,609

 

Total deposits

 

 

30,499,709

 

 

 

30,465,897

 

 

 

29,208,157

 

 

 

29,273,107

 

 

 

29,210,520

 

Short-term borrowings

 

 

1,620,302

 

 

 

1,665,061

 

 

 

1,745,228

 

 

 

1,516,508

 

 

 

1,652,747

 

Long-term debt

 

 

240,454

 

 

 

244,220

 

 

 

248,011

 

 

 

248,052

 

 

 

397,583

 

Other liabilities

 

 

505,875

 

 

 

485,675

 

 

 

487,146

 

 

 

498,141

 

 

 

394,890

 

Total liabilities

 

 

32,866,340

 

 

 

32,860,853

 

 

 

31,688,542

 

 

 

31,535,808

 

 

 

31,655,740

 

COMMON STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock net of treasury and capital surplus

 

 

2,051,534

 

 

 

2,065,214

 

 

 

2,084,387

 

 

 

2,080,486

 

 

 

2,073,658

 

Retained earnings

 

 

1,758,693

 

 

 

1,659,073

 

 

 

1,545,181

 

 

 

1,439,553

 

 

 

1,374,688

 

Accumulated other comprehensive income (loss)

 

 

(359,276

)

 

 

(53,935

)

 

 

198

 

 

 

42,862

 

 

 

(31,443

)

Total common stockholders' equity

 

 

3,450,951

 

 

 

3,670,352

 

 

 

3,629,766

 

 

 

3,562,901

 

 

 

3,416,903

 

Total liabilities & stockholders' equity

 

$

36,317,291

 

 

$

36,531,205

 

 

$

35,318,308

 

 

$

35,098,709

 

 

$

35,072,643

 

For informational purposes only - included above

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA Paycheck Protection Program (PPP) loans

 

$

334,828

 

 

$

531,059

 

 

$

935,330

 

 

$

1,417,523

 

 

$

2,345,605

 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

2,529,019

 

 

$

2,744,673

 

 

$

2,700,167

 

 

$

2,629,220

 

 

$

2,478,977

 

Tier 1 capital (g)

 

 

2,963,222

 

 

 

2,890,770

 

 

 

2,799,037

 

 

 

2,692,065

 

 

 

2,622,973

 

Common equity as a percentage of total assets

 

 

9.50

%

 

 

10.05

%

 

 

10.28

%

 

 

10.15

%

 

 

9.74

%

Tangible common equity ratio

 

 

7.15

%

 

 

7.71

%

 

 

7.85

%

 

 

7.70

%

 

 

7.26

%

Leverage (Tier 1) ratio (g)

 

 

8.38

%

 

 

8.25

%

 

 

8.15

%

 

 

7.83

%

 

 

7.89

%

Common equity tier 1 (CET1) ratio (g)

 

 

11.12

%

 

 

11.09

%

 

 

11.17

%

 

 

10.98

%

 

 

11.00

%

Tier 1 risk-based capital ratio (g)

 

 

11.12

%

 

 

11.09

%

 

 

11.17

%

 

 

10.98

%

 

 

11.00

%

Total risk-based capital ratio (g)

 

 

12.83

%

 

 

12.84

%

 

 

13.06

%

 

 

12.94

%

 

 

13.60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

 

10

 


 

HANCOCK WHITNEY CORPORATION

AVERAGE BALANCE SHEET

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

(in thousands)

 

3/31/2022

 

 

12/31/2021

 

 

3/31/2021

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

9,497,772

 

 

$

9,339,223

 

 

$

10,053,333

 

 

Commercial real estate - owner occupied loans

 

 

2,867,252

 

 

 

2,802,894

 

 

 

2,839,135

 

 

Total commercial and industrial loans

 

 

12,365,024

 

 

 

12,142,117

 

 

 

12,892,468

 

 

Commercial real estate - income producing loans

 

 

3,510,957

 

 

 

3,462,044

 

 

 

3,367,954

 

 

Construction and land development loans

 

 

1,243,314

 

 

 

1,198,638

 

 

 

1,073,843

 

 

Residential mortgage loans

 

 

2,441,359

 

 

 

2,365,798

 

 

 

2,600,492

 

 

Consumer loans

 

 

1,561,384

 

 

 

1,601,533

 

 

 

1,810,541

 

 

Total loans

 

 

21,122,038

 

 

 

20,770,130

 

 

 

21,745,298

 

 

Loans held for sale

 

 

64,271

 

 

 

77,405

 

 

 

111,753

 

 

Securities (h)

 

 

8,687,758

 

 

 

8,378,258

 

 

 

7,468,541

 

 

Short-term investments

 

 

3,327,859

 

 

 

3,687,866

 

 

 

1,690,045

 

 

Earning assets

 

 

33,201,926

 

 

 

32,913,659

 

 

 

31,015,637

 

 

Allowance for loan losses

 

 

(338,385

)

 

 

(362,112

)

 

 

(451,830

)

 

Goodwill and other intangible assets

 

 

923,752

 

 

 

927,571

 

 

 

940,074

 

 

Other assets

 

 

2,216,510

 

 

 

2,349,909

 

 

 

2,574,319

 

 

Total assets

 

$

36,003,803

 

 

$

35,829,027

 

 

$

34,078,200

 

 

LIABILITIES AND COMMON STOCKHOLDERS' EQUITY

 

 

Noninterest-bearing deposits

 

$

14,363,324

 

 

$

14,126,335

 

 

$

12,374,235

 

 

Interest-bearing transaction and savings deposits

 

 

11,423,421

 

 

 

11,405,136

 

 

 

10,795,991

 

 

Interest-bearing public fund deposits

 

 

3,154,540

 

 

 

3,057,776

 

 

 

3,211,077

 

 

Time deposits

 

 

1,088,508

 

 

 

1,161,418

 

 

 

1,757,460

 

 

Total interest-bearing deposits

 

 

15,666,469

 

 

 

15,624,330

 

 

 

15,764,528

 

 

Total deposits

 

 

30,029,793

 

 

 

29,750,665

 

 

 

28,138,763

 

 

Short-term borrowings

 

 

1,689,906

 

 

 

1,691,579

 

 

 

1,688,368

 

 

Long-term debt

 

 

241,828

 

 

 

245,369

 

 

 

396,731

 

 

Other liabilities

 

 

435,215

 

 

 

499,411

 

 

 

412,872

 

 

Common stockholders' equity

 

 

3,607,061

 

 

 

3,642,003

 

 

 

3,441,466

 

 

Total liabilities & stockholders' equity

 

$

36,003,803

 

 

$

35,829,027

 

 

$

34,078,200

 

 

For informational purposes only - included above

 

 

 

 

 

 

 

 

SBA Paycheck Protection Program (PPP) loans

 

$

430,363

 

 

$

708,435

 

 

$

2,191,284

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

11

 


 

 

HANCOCK WHITNEY CORPORATION

 

AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

3/31/2022

 

 

12/31/2021

 

 

3/31/2021

 

(dollars in millions)

 

Average
 Balance

 

 

Interest

 

 

Rate

 

 

Average
  Balance

 

 

Interest

 

 

Rate

 

 

Average
 Balance

 

 

Interest

 

 

Rate

 

AVERAGE EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans (TE) (i)

 

$

17,119.3

 

 

$

150.3

 

 

 

3.56

%

 

$

16,802.8

 

 

$

150.7

 

 

 

3.56

%

 

$

17,334.3

 

 

$

155.9

 

 

 

3.65

%

Residential mortgage loans

 

 

2,441.3

 

 

 

21.0

 

 

 

3.44

%

 

 

2,365.8

 

 

 

20.5

 

 

 

3.46

%

 

 

2,600.5

 

 

 

24.7

 

 

 

3.79

%

Consumer loans

 

 

1,561.4

 

 

 

18.4

 

 

 

4.77

%

 

 

1,601.5

 

 

 

18.9

 

 

 

4.68

%

 

 

1,810.5

 

 

 

21.4

 

 

 

4.79

%

Loan fees & late charges

 

 

 

 

 

4.4

 

 

 

0.00

%

 

 

 

 

 

10.3

 

 

 

0.00

%

 

 

 

 

 

13.4

 

 

 

0.00

%

Total loans (TE) (j) (k)

 

 

21,122.0

 

 

 

194.1

 

 

 

3.72

%

 

 

20,770.1

 

 

 

200.4

 

 

 

3.83

%

 

 

21,745.3

 

 

 

215.4

 

 

 

4.01

%

Loans held for sale

 

 

64.3

 

 

 

0.7

 

 

 

4.36

%

 

 

77.4

 

 

 

0.6

 

 

 

3.02

%

 

 

111.8

 

 

 

0.7

 

 

 

2.41

%

US Treasury and government agency securities

 

 

397.8

 

 

 

1.6

 

 

 

1.64

%

 

 

418.4

 

 

 

1.6

 

 

 

1.60

%

 

 

214.5

 

 

 

0.9

 

 

 

1.77

%

CMOs and mortgage backed securities

 

 

7,352.5

 

 

 

34.5

 

 

 

1.88

%

 

 

7,019.6

 

 

 

30.5

 

 

 

1.74

%

 

 

6,307.9

 

 

 

29.4

 

 

 

1.86

%

Municipals (TE)

 

 

916.5

 

 

 

6.7

 

 

 

2.93

%

 

 

924.1

 

 

 

6.8

 

 

 

2.93

%

 

 

934.5

 

 

 

6.8

 

 

 

2.93

%

Other securities

 

 

21.0

 

 

 

0.2

 

 

 

3.31

%

 

 

16.2

 

 

 

0.1

 

 

 

3.50

%

 

 

11.6

 

 

 

0.1

 

 

 

4.07

%

Total securities (TE) (l)

 

 

8,687.8

 

 

 

43.0

 

 

 

1.98

%

 

 

8,378.3

 

 

 

39.0

 

 

 

1.86

%

 

 

7,468.5

 

 

 

37.2

 

 

 

2.00

%

Total short-term investments

 

 

3,327.8

 

 

 

1.5

 

 

 

0.19

%

 

 

3,687.9

 

 

 

1.4

 

 

 

0.15

%

 

 

1,690.0

 

 

 

0.4

 

 

 

0.10

%

Average earning assets yield (TE)

 

$

33,201.9

 

 

$

239.3

 

 

 

2.91

%

 

$

32,913.7

 

 

$

241.4

 

 

 

2.92

%

 

$

31,015.6

 

 

$

253.7

 

 

 

3.30

%

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction and savings deposits

 

$

11,423.4

 

 

$

1.1

 

 

 

0.04

%

 

$

11,405.1

 

 

$

1.3

 

 

 

0.04

%

 

$

10,796.0

 

 

$

3.4

 

 

 

0.13

%

Time deposits

 

 

1,088.5

 

 

 

0.6

 

 

 

0.24

%

 

 

1,161.4

 

 

 

0.8

 

 

 

0.27

%

 

 

1,757.4

 

 

 

3.0

 

 

 

0.69

%

Public funds

 

 

3,154.6

 

 

 

2.1

 

 

 

0.26

%

 

 

3,057.8

 

 

 

2.8

 

 

 

0.36

%

 

 

3,211.1

 

 

 

2.8

 

 

 

0.36

%

Total interest-bearing deposits

 

 

15,666.5

 

 

 

3.8

 

 

 

0.10

%

 

 

15,624.3

 

 

 

4.9

 

 

 

0.12

%

 

 

15,764.5

 

 

 

9.2

 

 

 

0.24

%

Short-term borrowings

 

 

1,689.9

 

 

 

1.4

 

 

 

0.34

%

 

 

1,691.6

 

 

 

1.5

 

 

 

0.34

%

 

 

1,688.4

 

 

 

1.5

 

 

 

0.36

%

Long-term debt

 

 

241.8

 

 

 

3.1

 

 

 

5.17

%

 

 

245.4

 

 

 

3.1

 

 

 

5.12

%

 

 

396.7

 

 

 

5.5

 

 

 

5.48

%

Total borrowings

 

 

1,931.7

 

 

 

4.5

 

 

 

0.95

%

 

 

1,937.0

 

 

 

4.6

 

 

 

0.95

%

 

 

2,085.1

 

 

 

7.0

 

 

 

1.34

%

Total interest-bearing liabilities cost

 

 

17,598.2

 

 

 

8.3

 

 

 

0.19

%

 

 

17,561.3

 

 

 

9.5

 

 

 

0.21

%

 

 

17,849.6

 

 

 

16.2

 

 

 

0.37

%

Net interest-free funding sources

 

 

15,603.7

 

 

 

 

 

 

 

 

 

15,352.4

 

 

 

 

 

 

 

 

 

13,166.0

 

 

 

 

 

 

 

Total cost of funds

 

 

33,201.9

 

 

 

8.3

 

 

 

0.10

%

 

 

32,913.7

 

 

 

9.5

 

 

 

0.11

%

 

 

31,015.6

 

 

 

16.2

 

 

 

0.21

%

Net Interest Spread (TE)

 

 

 

 

$

231.0

 

 

 

2.72

%

 

 

 

 

$

231.9

 

 

 

2.70

%

 

 

 

 

$

237.5

 

 

 

2.94

%

Net Interest Margin (TE)

 

$

33,201.9

 

 

$

231.0

 

 

 

2.81

%

 

$

32,913.7

 

 

$

231.9

 

 

 

2.80

%

 

$

31,015.6

 

 

$

237.5

 

 

 

3.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 $1.5 million, $1.9 million and $3.5 million for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

 

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

 

 

 

 

12

 


 

 

HANCOCK WHITNEY CORPORATION

ASSET QUALITY INFORMATION

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

(dollars in thousands)

 

3/31/2022

 

 

12/31/2021

 

 

3/31/2021

 

 

Nonaccrual loans (m)

 

$

42,439

 

 

$

55,523

 

 

$

108,434

 

 

Restructured loans - still accruing

 

 

2,903

 

 

 

3,788

 

 

 

6,320

 

 

Total nonperforming loans

 

 

45,342

 

 

 

59,311

 

 

 

114,754

 

 

ORE and foreclosed assets

 

 

6,345

 

 

 

7,533

 

 

 

9,467

 

 

Total nonperforming assets

 

$

51,687

 

 

$

66,844

 

 

$

124,221

 

 

Nonperforming assets as a percentage of loans, ORE and foreclosed assets

 

 

0.24

%

 

 

0.32

%

 

 

0.57

%

 

Accruing loans 90 days past due (n)

 

$

4,258

 

 

$

5,524

 

 

$

5,090

 

 

Accruing loans 90 days past due as a percentage of loans

 

 

0.02

%

 

 

0.03

%

 

 

0.02

%

 

Nonperforming assets + accuring loans 90 days past due to loans, ORE and foreclosed assets

 

 

0.26

%

 

 

0.34

%

 

 

0.60

%

 

PROVISION AND ALLOWANCE FOR CREDIT LOSSES:

 

 

 

 

 

 

 

 

Allowance for Loan Losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

342,065

 

 

$

371,521

 

 

$

450,177

 

 

Provision for loan losses

 

 

(23,903

)

 

 

(28,787

)

 

 

(7,563

)

 

Charge-offs

 

 

(5,385

)

 

 

(6,155

)

 

 

(22,104

)

 

Recoveries

 

 

5,066

 

 

 

5,486

 

 

 

3,850

 

 

Net charge-offs

 

 

(319

)

 

 

(669

)

 

 

(18,254

)

 

Ending Balance

 

$

317,843

 

 

$

342,065

 

 

$

424,360

 

 

Reserve for Unfunded Lending Commitments:

 

 

 

 

 

 

 

 

Beginning balance

 

$

29,334

 

 

$

28,946

 

 

$

29,907

 

 

Provision for losses on unfunded lending commitments

 

 

1,376

 

 

 

388

 

 

 

2,652

 

 

Ending balance

 

$

30,710

 

 

$

29,334

 

 

$

32,559

 

 

Total Allowance for Credit Losses

 

$

348,553

 

 

$

371,399

 

 

$

456,919

 

 

Total Provision for Credit Losses

 

$

(22,527

)

 

$

(28,399

)

 

$

(4,911

)

 

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

 

 

1.49

%

 

 

1.62

%

 

 

1.96

%

 

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

 

 

1.63

%

 

 

1.76

%

 

 

2.11

%

 

Allowance for loan losses to nonperforming loans + accruing loans 90 days past due

 

 

640.81

%

 

 

527.59

%

 

 

354.09

%

 

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

Net charge-offs (recoveries):

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

(814

)

 

$

(502

)

 

$

16,206

 

 

Residential mortgage loans

 

 

(19

)

 

 

(31

)

 

 

(97

)

 

Consumer loans

 

 

1,152

 

 

 

1,202

 

 

 

2,145

 

 

Total net charge-offs

 

$

319

 

 

$

669

 

 

$

18,254

 

 

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

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

(0.02

)%

 

 

(0.01

)%

 

 

0.38

%

 

Residential mortgage loans

 

 

(0.00

)%

 

 

(0.01

)%

 

 

(0.02

)%

 

Consumer loans

 

 

0.30

%

 

 

0.30

%

 

 

0.48

%

 

Total net charge-offs as a percentage of average loans

 

 

0.01

%

 

 

0.01

%

 

 

0.34

%

 

 

 

 

 

 

 

 

 

 

 

 

(m) Included in nonaccrual loans are nonaccruing restructured loans totaling $3.6 million, $6.8 million and $7.2 million at March 31, 2022, December 31, 2021 and March 31, 2022, respectively.

(n) Excludes 90+ accruing loan troubled debt restructured loans already reflected in total nonperforming loans of $1.8 million at March 31, 2021.

 

 

 

13

 


 

 

HANCOCK WHITNEY CORPORATION

 

ASSET QUALITY INFORMATION

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(dollars in thousands)

 

3/31/2022

 

 

12/31/2021

 

 

9/30/2021

 

 

6/30/2021

 

 

3/31/2021

 

Nonaccrual loans (m)

 

$

42,439

 

 

$

55,523

 

 

$

60,357

 

 

$

83,551

 

 

$

108,434

 

Restructured loans - still accruing

 

 

2,903

 

 

 

3,788

 

 

 

3,071

 

 

 

3,830

 

 

 

6,320

 

Total nonperforming loans

 

 

45,342

 

 

 

59,311

 

 

 

63,428

 

 

 

87,381

 

 

 

114,754

 

ORE and foreclosed assets

 

 

6,345

 

 

 

7,533

 

 

 

8,423

 

 

 

10,201

 

 

 

9,467

 

Total nonperforming assets

 

$

51,687

 

 

$

66,844

 

 

$

71,851

 

 

$

97,582

 

 

$

124,221

 

Nonperforming assets as a percentage of loans, ORE and foreclosed assets

 

 

0.24

%

 

 

0.32

%

 

 

0.34

%

 

 

0.46

%

 

 

0.57

%

Accruing loans 90 days past due (n)

 

$

4,258

 

 

$

5,524

 

 

$

9,970

 

 

$

8,925

 

 

$

5,090

 

Accruing loans 90 days past due as a percentage of loans

 

 

0.02

%

 

 

0.03

%

 

 

0.05

%

 

 

0.04

%

 

 

0.02

%

Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets

 

 

0.26

%

 

 

0.34

%

 

 

0.39

%

 

 

0.50

%

 

 

0.60

%

PROVISION AND ALLOWANCE FOR CREDIT LOSSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

317,843

 

 

$

342,065

 

 

$

371,521

 

 

$

399,668

 

 

$

424,360

 

Reserve for unfunded lending commitments

 

 

30,710

 

 

 

29,334

 

 

 

28,946

 

 

 

29,524

 

 

 

32,559

 

Total allowance for credit losses

 

$

348,553

 

 

$

371,399

 

 

$

400,467

 

 

$

429,192

 

 

$

456,919

 

Total provision for credit losses

 

$

(22,527

)

 

$

(28,399

)

 

$

(26,955

)

 

$

(17,229

)

 

$

(4,911

)

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

 

 

1.49

%

 

 

1.62

%

 

 

1.78

%

 

 

1.89

%

 

 

1.96

%

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

 

 

1.63

%

 

 

1.76

%

 

 

1.92

%

 

 

2.03

%

 

 

2.11

%

Allowance for loan losses to nonperforming loans + accruing loans 90 days past due

 

 

640.81

%

 

 

527.59

%

 

 

506.17

%

 

 

415.00

%

 

 

354.09

%

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

(814

)

 

$

(502

)

 

$

536

 

 

$

9,257

 

 

$

16,206

 

Residential mortgage loans

 

 

(19

)

 

 

(31

)

 

 

(485

)

 

 

(133

)

 

 

(97

)

Consumer loans

 

 

1,152

 

 

 

1,202

 

 

 

1,719

 

 

 

1,374

 

 

 

2,145

 

Total net charge-offs

 

$

319

 

 

$

669

 

 

$

1,770

 

 

$

10,498

 

 

$

18,254

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

(0.02

)%

 

 

(0.01

)%

 

 

0.01

%

 

 

0.22

%

 

 

0.38

%

Residential mortgage loans

 

 

(0.00

)%

 

 

(0.01

)%

 

 

(0.08

)%

 

 

(0.02

)%

 

 

(0.02

)%

Consumer loans

 

 

0.30

%

 

 

0.30

%

 

 

0.41

%

 

 

0.32

%

 

 

0.48

%

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

 

 

0.01

%

 

 

0.01

%

 

 

0.03

%

 

 

0.20

%

 

 

0.34

%

AVERAGE LOANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

17,119,295

 

 

$

16,802,799

 

 

$

16,918,343

 

 

$

17,233,112

 

 

$

17,334,265

 

Residential mortgage loans

 

 

2,441,359

 

 

 

2,365,798

 

 

 

2,376,500

 

 

 

2,442,956

 

 

 

2,600,492

 

Consumer loans

 

 

1,561,384

 

 

 

1,601,533

 

 

 

1,646,330

 

 

 

1,712,746

 

 

 

1,810,541

 

Total average loans

 

$

21,122,038

 

 

$

20,770,130

 

 

$

20,941,173

 

 

$

21,388,814

 

 

$

21,745,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(m) Included in nonaccrual loans are nonaccruing restructured loans totaling $3.6 million, $6.8 million, $7.2 million, $6.8 million and $7.2 million at March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021, respectively.

 

(n) Excludes 90+ accruing loan troubled debt restructured loans already reflected in total nonperforming loans of $1.8 million at March 31, 2021.

 

 

 

14

 


 

HANCOCK WHITNEY CORPORATION

 

Appendix A to the Earnings Release

 

Reconciliation of Non-GAAP Measure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(in thousands)

 

3/31/2022

 

 

12/31/2021

 

 

9/30/2021

 

 

6/30/2021

 

 

3/31/2021

 

Net interest income

 

$

228,463

 

 

$

229,296

 

 

$

234,709

 

 

$

234,643

 

 

$

234,587

 

Noninterest income

 

 

83,432

 

 

 

89,612

 

 

 

93,361

 

 

 

94,272

 

 

 

87,089

 

Total revenue

 

 

311,895

 

 

 

318,908

 

 

 

328,070

 

 

 

328,915

 

 

 

321,676

 

Taxable equivalent adjustment (o)

 

 

2,545

 

 

 

2,635

 

 

 

2,768

 

 

 

2,854

 

 

 

2,922

 

Nonoperating revenue

 

 

 

 

 

(3,600

)

 

 

(4,576

)

 

 

(2,800

)

 

 

 

Operating revenue (TE)

 

 

314,440

 

 

 

317,943

 

 

 

326,262

 

 

 

328,969

 

 

 

324,598

 

Noninterest expense

 

 

(179,939

)

 

 

(182,462

)

 

 

(194,703

)

 

 

(236,770

)

 

 

(193,072

)

Nonoperating expense

 

 

 

 

 

(1,329

)

 

 

3,225

 

 

 

44,977

 

 

 

 

Operating pre-provision net revenue (TE)

 

$

134,501

 

 

$

134,152

 

 

$

134,784

 

 

$

137,176

 

 

$

131,526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

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