Hancock Whitney Corporation 10-Q Report: Financial Condition and Results of Operations

Press release · 05/10 05:14
Hancock Whitney Corporation 10-Q Report: Financial Condition and Results of Operations

Hancock Whitney Corporation 10-Q Report: Financial Condition and Results of Operations

Hancock Whitney Corporation reported a net income of $42.7 million for the quarter ended March 31, 2024, with total assets of $19.3 billion and total equity of $2.2 billion. The company’s net interest margin was 2.92%, and the efficiency ratio was 51.2%. The allowance for credit losses increased to $291.7 million, and the allowance for loan and lease losses was $289.7 million. The company’s common stock was outstanding at 86,630,304 shares.

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Table of Contents

  1. Company Overview and Operating Environment
  2. Financial Highlights and Performance
  3. Loan Portfolio
  4. Asset Quality and Allowance for Credit Losses
  5. Funding and Liquidity
  6. Capital Position

Company Overview and Operating Environment

Hancock Whitney is a regional bank holding company headquartered in Gulfport, Mississippi with $35.2 billion in assets as of March 31, 2024. The company operates in the Southeastern and Gulf South United States.

The operating environment remains challenging with high inflation, rising interest rates, and economic uncertainty. Hancock Whitney’s net income for Q1 2024 was $108.6 million or $1.24 per diluted share.

Financial Highlights and Performance

  • Net interest income (FTE) was $269 million, down 1% linked-quarter due to fewer days in the quarter but up 6% year-over-year.
  • Net interest margin expanded by 5 basis points linked-quarter to 3.32% due to favorable earning asset mix and higher loan yields.
  • Noninterest income was $87.9 million, up 126% linked-quarter due to volatile items last quarter but up 9% year-over-year from higher service charges, investment fees, and mortgage income.
  • Noninterest expense was $207.7 million, down 9% linked-quarter due to lower regulatory assessments but up 3% year-over-year due to higher personnel costs.
  • Continue to expect modest net interest margin expansion and 3-4% growth in revenue and expenses for full year 2024.

Loan Portfolio

  • Period-end total loans held relatively steady at $24.0 billion, with growth in residential mortgages offsetting declines in consumer loans.
  • Commercial and industrial loans decreased less than 1% to $13 billion, representing 54% of total loans.
  • Criticized commercial loans increased 24% linked-quarter to $339.9 million or 1.83% of commercial loans as credit metrics normalize.
  • Net charge-offs remained low at 0.15% of average loans. Allowance for credit losses stable at 1.42% of total loans.

Asset Quality and Allowance for Credit Losses

  • Allowance for credit losses totaled $340.8 million or 1.42% of total loans.
  • Provision for credit losses was $13 million, mostly offsetting $9 million of net charge-offs.
  • Using Moody’s February economic scenarios, maintained 40% weighting on baseline and 60% on mild recession scenario.
  • Asset quality metrics remain near historically strong levels but are normalizing. Reserve levels remain elevated relative to pre-pandemic.

Funding and Liquidity

  • Average deposits were steady linked-quarter while period-end deposits increased modestly to $29.8 billion.
  • Maintain strong liquidity position with $19.2 billion of available funding capacity.
  • Loan-to-deposit ratio remained within target range at 80.6% for the quarter.

Capital Position

  • Common equity Tier 1 ratio increased to 12.65%, remaining well above regulatory minimums.
  • Tangible common equity ratio expanded to 8.61% driven by earnings.
  • Declared 33% increase in common dividend to $0.40 per share for Q2 2024.
  • Stock repurchase program remains authorized but unused as of quarter-end.

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