Business
Hancock Whitney reports third quarter 2020 EPS of $.90
GULFPORT, Miss., Oct. 20, 2020 (GLOBE NEWSWIRE) -- Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the third quarter of
About this update from Hancock Whitney Corporation
[{"type":"text","content":"GULFPORT, Miss., Oct. 20, 2020 (GLOBE NEWSWIRE) -- Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the third quarter of 2020. Net income for the third quarter of 2020 was $79.4 million, or $0.90 per diluted common share (EPS), compared to a net loss of $117.1 million, or ($1.36) per diluted common share, in the second quarter of 2020. Net income for the third quarter of 2019 was $67.8 million, or $0.77 per diluted common share. The net loss for the second quarter of 2020 reflected a provision for credit losses of $306.9 million that included both a special provision related to the sale of $497 million in energy loans and an additional build in the reserve for credit losses related to COVID-19. The third quarter of 2019 included $28.8 million ($0.26 per share impact) of merger costs associated with the September 2019 acquisition of MidSouth Bancorp, Inc.\n On July 21, 2020, the Company sold $497 million in energy loans that included reserve-based (RBL), midstream and nondrilling service credits. The company received proceeds of $257.5 million from the sale of these loans. All loans included in the transaction were re-classified as held for sale as of June 30, 2020, and second quarter of 2020 earnings results included a special provision for credit losses of approximately $160 million (pre-tax), or $1.47 per diluted share (21% tax rate), related to the energy loan sale. “I am very pleased to report a return to profitability this quarter,” said John M. Hairston, President and CEO. “The de-risking strategies implemented in the first half of 2020 positioned us for better results moving forward, as exhibited by performance in the third quarter. While still impacted by the pandemic-related economy, we reported solid results and began rebuilding capital. Pre-provision net revenue was up 7% linked quarter, provision for credit losses returned to a more normalized level and our CET1 ratio improved to 10.29%. Last quarter we stated an expectation that our actions through the first half of 2020 would provide a stronger reserve with less risk in the balance sheet, which in turn should lead to improved returns for our shareholders; 3Q20 results reflect the execution of our strategy.” Third Quarter 2020 Highlights Pre-provision net revenue (PPNR) totaled $126.3 million, up $7.8 million, or 7%, linked-quarter...