Hancock Whitney Corporation · NASDAQ:HWC
Hancock Whitney — Q4 2024 Earnings Presentation
39 slides from Hancock Whitney's earnings presentation, Jan 21, 2025
Slide 1: Fourth Quarter 2024 Earnings Conference Call
Fourth Quarter 2024 Earnings Conference Call 1/21/2025 HANCOCK WHITNEY
Slide 2: Important cautionary statement about forward-looking statements
Important cautionary statement about forward-looking statements This presentation 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 ma
Slide 3: Non-GAAP Reconciliations & Glossary of Terms
Non-GAAP Reconciliations & Glossary of Terms Throughout this presentation we may use non-GAAP numbers to supplement the evaluation of our performance. The items noted below with an asterisk, "*", are considered non-GAAP. These non-GAAP financial measures should not be considered alternatives to GAAP
Slide 4: Corporate Profile
Corporate Profile $35.1 billion in Total Assets (Healthcare) $23.3 billion in Total Loans (ABL) (Trust) (Operations) $29.5 billion in Total Deposits CET1 Ratio 14.14%* TCE Ratio 9.47% $4.7 billion in Market Cap Baa3 180 223 Moody’s banking locations ATMs Long-term issuer rating; positive outlook BBB
Slide 5: How we do business
How we do business Our Mission. Our Purpose. Our Promise to Associates. Each day, we reaffirm our We work hard to create We honor and respect mission to help people achieve opportunities for people and associates with a heartfelt their financial goals and the communities we serve, our promise: You c
Slide 6: HWC Strong and Stable for 125 Years
HWC Strong and Stable for 125 Years ► Strength to manage through challenging economic environments ► Density in resilient deposit markets ► Stable, seasoned, diversified deposits; ability to organically grow deposits ► Top quartile capital levels including all unrealized losses ► Ability to return c
Slide 7: Acquisition of Sabal Trust Company
Acquisition of Sabal Trust Company ► All-cash strategic acquisition expected to close in the second quarter of 2025 ► Strategic overlay to 2018’s acquisition of Capital One’s trust and asset management business ► Florida becomes the largest private wealth management fee income contributor in the ban
Slide 8: Year One of Multi-Year Organic Growth Plan
Year One of Multi-Year Organic Growth Plan Revenue Producers Facility Expansion ► Plan initiated in 2024 to hire additional wholesale, business, and ► Five additional financial center locations are planned for Dallas wealth management revenue producers MSA in 2025 ► Largely in higher-growth MSAs in
Slide 9: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights ► Net income totaled $122.1 million, or $1.40 per diluted ($s in millions; except per share data) 4Q24 3Q24 4Q23 share, compared to $115.6 million, or $1.33 per diluted share in 3Q24 Net income $122.1 $115.6 $50.6 ► Pre-Provision Net Revenue (PPNR)* totaled $165.2 Prov
Slide 10: 2024 Highlights
2024 Highlights ► Net income of $460.8 million, or $5.28 per diluted ($s in millions; except per share data) 2024 2023 share, compared to $392.6 million, or $4.50 per diluted share, in 2023 Net income $460.8 $392.6 ─ Other supplemental disclosure items in 2024 results Provision for credit losses $52
Slide 11: Expected CRE Payoffs Drive Decrease in Loans
Expected CRE Payoffs Drive Decrease in Loans ► Loans totaled $23.3 billion, down $156 Line Utilization million, or 3% LQA 45.0% – Contraction primarily driven by an increase in payoffs of commercial real estate credits 41.6% 41.7% 41.3% 41.8% 41.1% 40.9% 40.5% – Increase in commercial non-real estat
Slide 12: Loan Portfolio Composition Diversified and De-Risked
Loan Portfolio Composition Diversified and De-Risked ► Loan portfolio diverse across a number of Total Loans % of Total ($s in millions) Outstanding Loans Commitment segments and industries Commercial non-RE (C&I) $7,665 32.9% $13,510 ► Conservative underwriting in both type and CRE – owner 2,444 10
Slide 13: Deposits Increase Despite Brokered Deposit Maturities
Deposits Increase Despite Brokered Deposit Maturities ► Total deposits of $29.5 billion, up $510 million, or 7% LQA EOP Deposits Mix ($) – Noninterest-bearing DDA increased $97 million; DDAs as a % of total 35,000 deposits stable in 4Q24 at 36% 30,000 25,000 – Brokered deposits decreased $183 millio
Slide 14: Asset Quality Metrics
Asset Quality Metrics $700 3.47% $600 2.81% $500 $400 2.05% 1.83% $300 1.47% $200 $100 0.34% 0.36% 0.35% 0.42% 0.25% $0 4Q23 1Q24 2Q24 3Q24 4Q24 Total Loans $23,922 $23,971 $23,912 $23,456 $23,299 Total Commercial Loans 18,589 18,591 18,524 18,097 17,968 Criticized Commercial Loans 274 340 380 508 6
Slide 15: Maintained Solid Reserves
Maintained Solid Reserves ► Provision for the fourth quarter of 2024 of $11.9 million, Reserve Build / reflects $11.7 million of net charge-offs and a reserve Net Charge-offs (Release) Total Provision build of $0.2 million ($s in millions) 4Q24 3Q24 4Q24 3Q24 4Q24 3Q24 – Increase in reserve coverage
Slide 16: Portfolio Reinvestment Drives Yield Increase
Portfolio Reinvestment Drives Yield Increase ► Securities portfolio* totaled $8.2 billion at 12/31/24, flat linked-quarter Securities Portfolio* Mix 12/31/24 ► 70% AFS, 30% HTM at 12/31/24 $s in millions Munis ► To reduce OCI volatility and provide flexibility to $824 reposition and/or reprice the h
Slide 17: Continued NIM Expansion Linked-Quarter
Continued NIM Expansion Linked-Quarter ► 4Q24 NIM 3.41%, up 2 bps from 3Q24 – NIM 3.39% for the month of December 2024 3.50% 0.16% 3.40% ► NII (TE) of $276.3 million, compared to $274.5 million 3.30% 0.05% 0.01% prior quarter 3.20% 0.20% − Increase in NII primarily driven by lower deposit costs and
Slide 18: New Loan Rates Impacted by Rate Environment
New Loan Rates Impacted by Rate Environment New Loans Fixed Loans Variable Loans Total New Loan Rate* $1,600 9.00% 8.15% 8.01% 8.03% 7.91% 7.81% $1,400 7.07% 7.50% $1,200 6.00% $1,000 $ in millions $800 4.50% $600 3.00% $400 $748 $621 $724 $855 $648 $793 1.50% $200 $333 $291 $281 $298 $266 $247 $0 0
Slide 19: Key IRR Metrics
Key IRR Metrics Loans ► Loans totaled $23.3 billion at December 31, 2024 – 41% fixed, 59% variable (includes hybrid ARMs) – 72% of variable loans tied to SOFR – 23% of variable loans tied to Wall Street Journal Prime – 5% of variable loans tied to other indices ► Approximately 4% ($477MM) of the var
Slide 20: Fee Income Decrease Related to Specialty Lines
Fee Income Decrease Related to Specialty Lines $120 $100 $0.3 $0.1 $0.2 $0.8 $80 $4.1 $s in millions $60 $95.9 $91.2 $40 $20 $0 3Q24 Noninterest Service charges Bank card & Trust fees Secondary Other 4Q24 Noninterest Income on deposit accounts ATM fees mortgage Income fees Noninterest Income Mix ► N
Slide 21: Expenses Decrease Linked-Quarter
Expenses Decrease Linked-Quarter $225 $2.0 $0.3 $0.1 $0.4 $200 $1.3 $s in millions $175 $203.8 $202.3 $150 $125 $100 3Q24 Noninterest Personnel Occupancy and Amortization of ORE/OFA Other (net) 4Q24 Noninterest Expense expense Equipment intangibles expenses Expense Noninterest Expense Mix 12/31/24 ►
Slide 22: Capital Levels Continue to Improve
Capital Levels Continue to Improve ► CET1 ratio estimated at 14.14%, up 36 bps linked- CET1 Ratio and Tangible Tier 1 Risked- Total quarter Common Equity Leverage Based Capital Risk-Based Ratio Ratio Ratio Capital Ratio ► Leverage (Tier 1) ratio estimated at 11.29%, up 26 bps December 31, 2024* 9.47
Slide 23: Remain Well Capitalized Including All Unrealized Losses
Remain Well Capitalized Including All Unrealized Losses 12/31/2024 Inc. AOCI Inc. AOCI + HTM Well Capitalized As Reported* Losses (1) Losses(2) Minimum Tangible Common Equity Ratio 9.47% 9.47% 9.05% N/A Leverage (Tier 1) Ratio 11.29% 9.87% 9.46% 5.00% CET1 Ratio 14.14% 12.28% 11.72% 6.50% Tier 1 Ris
Slide 24: 2025 Forward Guidance
2025 Forward Guidance 2024 FY 2025 Actual Outlook (Excludes impact of the acquisition of Sabal Trust Company) Loans (EOP) $23.3B Expect EOP loans at 12/31/25 to be up mid-single digits from 12/31/24 levels Deposits (EOP) $29.5B Expect EOP deposits at 12/31/25 to be up low single digits from 12/31/24
Slide 25: Appendix and Non-GAAP Reconciliations
Appendix and Non-GAAP Reconciliations Appendix and Non-GAAP Reconciliations CHANCOCK WHITNEY
Slide 26: Summary Balance Sheet
Summary Balance Sheet ($ in millions) Change Change 4Q24 3Q24 4Q23 LQ Prior Year YTD 2024 YTD 2023 Y-o-Y EOP Balance Sheet 23,299.4 23,455.6 23,921.9 (156.2) (622.5) Loans 23,299.4 23,921.9 (622.5) 7,597.2 7,769.8 7,600.0 (172.6) (2.8) Securities 7,597.2 7,600.0 (2.8) 31,857.8 32,045.2 32,175.1 (187
Slide 27: Balance Sheet Summary
Balance Sheet Summary Average Loans Average Securities* Average Deposits ($s in billions) ($s in billions) ($s in billions) $25 $11 $32 $23.8 $23.8 $23.9 $24 $23.6 $10 $23.2 $30.0 $29.6 $8.6 $30 $29.1 $29.1 $23 $9 $8.3 $28.9 $8.2 $8.2 $8.2 $22 $8 $28 $21 $7 $20 $6 $26 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1
Slide 28: ICRE Segmentation Detail and Key Metrics
ICRE Segmentation Detail and Key Metrics ► ICRE loan portfolio is diversified by asset class, Total Loans Outstanding % of Total Commitment Loans industry and geographic region ($s in millions) Multifamily $880 3.8% $890 ► ICRE 16% of total loans and includes a variety of Office 684 2.9% 703 collate
Slide 29: EOP Loan Repricing and Maturity
EOP Loan Repricing and Maturity Repricing/Maturity Term (1) Rate Structure 3 months 4-12 Over 15 Total Loans Variable Fixed 1-3 Years 3-5 Years 5-15 Years ($s in millions) or less months Years (EOP) Rate Rate Commercial Non-RE $6,262 $250 $1,115 $1,226 $952 $72 $9,877 $6,394 $3,483 CRE-Owner 954 72
Slide 30: Total Loan Rates and Yield Trends
Total Loan Rates and Yield Trends Total Loans $30,000 Fixed Loans Variable Loans Total Loan Yield** 6.60% $25,000 6.40% 6.27% 6.24% $20,000 6.16% 6.20% 6.11% 6.01% 6.02% $ in millions $15,000 6.00% $14,329 $14,311 $14,524 $14,474 $14,021 $13,810 $10,000 5.80% $5,000 5.60% $9,655 $9,611 $9,447 $9,438
Slide 31: Maintaining a Seasoned, Stable, Diversified Deposit Base
Maintaining a Seasoned, Stable, Diversified Deposit Base ► DDAs as a % of total deposits remains among best-in-class at 36% at December 31, 2024 ► Uninsured deposits (adjusted for collateralized public funds) were 37.3% at December 31, 2024, virtually flat linked- quarter EOP Deposits by Line of Bus
Slide 32: Strong Liquidity Position; Multiple Sources of Funding Available
Strong Liquidity Position; Multiple Sources of Funding Available ▶ Currently have approximately $19.1 billion in At December 31, 2024 Total Amount Net internal and external sources of liquidity if $ in millions Sources Used Availability needed Internal Sources Free Securities $ 3,632 $ - $ 3,632 ▶ O
Slide 33: Summary Income Statement
Summary Income Statement ($ in millions, except for per share data) Change Change 4Q24 3Q24 4Q23 LQ Prior Year YTD 2024 YTD 2023 Y-o-Y 276.3 274.5 272.3 1.8 4.0 Net interest income (TE) 1,093.0 1,108.7 (15.7) 11.9 18.6 17.0 (6.7) (5.1) Provision for credit losses 52.2 59.1 (6.9) 91.2 95.9 39.0 (4.7)
Slide 34: Income Statement Summary (as Adjusted)
Income Statement Summary (as Adjusted*) Adjusted PPNR* Net Interest Income (TE) Net Interest Margin (TE) ($s in millions) ($s in millions) $180 $320 3.75% $166.5 $165.2 $170 $300 3.60% $157.5 $273.3 $274.5 $276.3 3.41% $156.4 $272.3 3.37% 3.39% $160 $152.9 $280 $269.0 3.45% 3.32% 3.27% $150 $260 3.3
Slide 35: Current Hedge Positions
Current Hedge Positions Cash Flow (CF) Hedges ► Receive 232 bps versus paying 1-month SOFR on $1.4 billion ► No additional hedges were added or terminated during the fourth quarter ► Total termination value on remaining active CF hedges is approximately ($51) million as of 12/31/24 ► Future maturiti
Slide 36: PPNR (TE) and Adjusted PPNR (TE) Reconciliation
PPNR (TE) and Adjusted PPNR (TE) Reconciliation Three Months Ended Twelve Months Ended (in thousands) 4Q24 3Q24 2Q24 1Q24 4Q23 2024 2023 Net Income (GAAP) $122,074 $115,572 $114,557 $108,612 $50,603 $460,815 $392,602 Provision for credit losses 11,912 18,564 8,723 12,968 16,952 52,167 59,103 Income
Slide 37: Adjusted Efficiency Ratio
Adjusted Efficiency Ratio Three Months Ended Twelve Months Ended (in thousands) 4Q24 3Q24 2Q24 1Q24 4Q23 2024 2023 Net interest income $273,556 $271,764 $270,430 $266,171 $269,460 $1,081,921 $1,097,599 Noninterest income 91,209 95,895 89,174 87,851 38,951 364,129 288,480 Total GAAP revenue 364,765 3
Slide 38: Adjusted Earnings Per Share - Diluted; Adjusted ROA and ROTCE
Adjusted Earnings Per Share - Diluted Twelve Months Ended (in thousands) 2024 2023 Net Income (GAAP) $460,815 $392,602 Net income allocated to participating securities (3,027) (4,014) Net income available to common shareholders $457,788 $388,588 Supplemental disclosure items, net of income tax* 3,00
Slide 39: Fourth Quarter 2024 Earnings Conference Call
Fourth Quarter 2024 Earnings Conference Call 1/21/2025 HANCOCK WHITNEY