Hancock Whitney Reports Third Quarter 2024 EPS of $1.33

About this update from Hancock Whitney Corporation

GULFPORT, Miss. --(BUSINESS WIRE)-- Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the third quarter of 2024. Net income for the third quarter of 2024 totaled $115.6 million , or $1.33 per diluted common share (EPS), compared to $114.6 million , or $1.31 per diluted common share, in the second quarter of 2024. The company reported net income for the third quarter of 2023 of $97.7 million , or $1.12 per diluted common share. Third Quarter 2024 Highlights Net income totaled $115.6 million , compared to $114.6 million in the prior quarter Pre-provision net revenue (PPNR) totaled $166.5 million , compared to $156.4 million in the prior quarter Loans decreased $456 million , or 8% linked quarter annualized (LQA) Deposits decreased $218 million , or 3% LQA Criticized commercial loans increased and nonaccrual loans decreased ACL coverage solid at 1.46%, up 3 bps compared to prior quarter NIM 3.39%, up 2 bps compared to prior quarter CET1 ratio estimated at 13.79%, up 54 bps linked-quarter; TCE ratio 9.56%, up 79 bps linked-quarter Efficiency ratio 54.42%, down 176 bps linked-quarter “The third quarter results reflect the continued strength and stability of our company,” said John M. Hairston , President & CEO. “Our efforts to improve profitability continued with another quarter of 1.32% ROA, additional NIM expansion, fee income growth, and lower operating expenses. Credit metrics continued to normalize with an increase in criticized commercial loans at the end of the quarter. Non-accrual loans were down, and we’ve maintained a solid ACL to loans of 1.46%. Our capital ratios continue to grow due to strong earnings and are at top quartile levels. As we reflect on and celebrate our 125th anniversary, we remain dedicated to demonstrating our strength, stability, and commitment to our shareholders, clients, communities, and associates.” Loans Total loans were $23.5 billion at September 30, 2024 , down $456.0 million , or 2%, from June 30, 2024 . The decrease was primarily due to the runoff of a Shared National Credit portfolio of $254 million as we remain focused on originating more granular loans, and higher payoffs on income-producing commercial real estate loans. Average loans totaled $23.6 billion for the third quarter of 2024, down $365.4 million , or 2%, linked-quarter. Management expects 2024 period-end loan balances to be flat to down slightly from year-end 2023. Deposits Total deposits at September 30, 2024 were $29.0 billion , down $217.8 million , or less than 1%, from June 30, 2024 . The linked-quarter decrease in deposits was driven primarily by a decrease in interest-bearing public funds driven by seasonal runoff and a decrease in DDAs. These decreases were partially offset by an increase in interest-bearing transactions and savings deposits due to mid-quarter inflows from equity markets and an increase in retail time deposits despite maturity concentrations and promotional rate reductions during the period. DDAs totaled $10.5 billion at September 30, 2024 , down $142.7 million , or 1%, from June 30, 2024 and comprised 36% of total period-end deposits. Interest-bearing transaction and savings deposits totaled $10.9 billion at the end of the third quarter of 2024, up $81.9 million , or 1%, linked-quarter. Compared to June 30, 2024 , retail time deposits of $4.7 billion were up $70.3 million , or 2%, and brokered deposits were $190.5 million , down $9.6 million , or 5%, compared to the prior quarter. Interest-bearing public fund deposits decreased $217.6 million , or 7%, linked-quarter, totaling $2.7 billion at September 30, 2024 . Average deposits for the third quarter of 2024 were $28.9 billion , down $128.9 million , or less than 1%, 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 $342.8 million at September 30, 2024 , up $0.5 million , or less than 1%, from June 30, 2024 . During the third quarter of 2024, the company recorded a provision for credit losses of $18.6 million , compared to a provision for credit losses of $8.7 million in the second quarter of 2024. There were $18.0 million of net charge-offs in the third quarter of 2024, or 0.30% of average total loans on an annualized basis, compared to net charge-offs of $7.3 million , or 0.12% of average total loans in the second quarter of 2024. The ratio of ACL to period-end loans was 1.46% at September 30, 2024 , compared to 1.43% at June 30, 2024 . Criticized commercial loans totaled $508.0 million , or 2.81% of total commercial loans, at September 30, 2024 , compared to $379.8 million , or 2.05% of total commercial loans at June 30, 2024 . Nonaccrual loans totaled $82.9 million , or 0.35% of total loans, at September 30, 2024 , compared to $86.3 million , or 0.36% of total loans, at June 30, 2024 . ORE and foreclosed assets were $27.7 million at September 30, 2024 , up $25.6 million , compared to June 30, 2024 , largely due to property from one commercial borrower. Net Interest Income and Net Interest Margin (NIM) Net interest income (TE) for the third quarter of 2024 was $274.5 million , an increase of $1.2 million , or less than 1%, from the second quarter of 2024. The net interest margin (NIM) (TE) was 3.39% in the third quarter of 2024, up 2 bps linked-quarter. Higher rates on loans (+2 bps), higher securities yields (+1 bp) and a favorable borrowing mix (+1 bp), led to a 4 basis point improvement in NIM, partially offset by the change in deposit rates (-2 bps). Average earning assets were $32.3 billion for the third quarter of 2024, down $275.6 million , or less than 1%, from the second quarter of 2024. Noninterest Income Noninterest income totaled $95.9 million for the third quarter of 2024, up $6.7 million , or 8%, from the second quarter of 2024. Service charges on deposits were up $0.9 million , or 4%, from the second quarter of 2024, due to higher account activity. Bank card and ATM fees were down $0.2 million , or 1%, from the second quarter of 2024. Investment and annuity income and insurance fees were up $1.1 million , or 11%, linked-quarter, related to sales and recurring fees on higher market value securities. Trust fees were down $0.5 million , or 2% linked-quarter. Fees from secondary mortgage operations totaled $3.4 million for the third quarter of 2024, down $0.2 million , or 5%, linked-quarter. Other noninterest income was $18.8 million in the third quarter of 2024, up $5.6 million , or 42%, from the second quarter of 2024, due to higher derivative income, SBIC income, BOLI and SBA loan income. Noninterest Expense & Taxes Noninterest expense totaled $203.8 million , down $2.2 million , or 1% linked-quarter. Personnel expense totaled $115.8 million in the third quarter of 2024, down $3.0 million , or 2%, linked-quarter. The decrease was due to a decrease in full-time equivalent employees and higher loan fee deferrals (FAS91). Net occupancy and equipment expense totaled $18.1 million in the third quarter of 2024, up $0.7 million , or 4%, from the second quarter of 2024, due to routine maintenance and hardware replacements. Amortization of intangibles totaled $2.3 million for the third quarter of 2024, down $0.1 million , or 4%, linked-quarter. ORE and other foreclosed assets was a net gain of $0.4 million in the third quarter of 2024, compared to a net gain of $1.1 million in the second quarter of 2024. Other expense totaled $68.1 million in the third quarter of 2024, down $0.5 million or less than 1%, linked-quarter. The effective income tax rate for the third quarter of 2024 was 20.4%. Capital Common stockholders’ equity at September 30, 2024 totaled $4.2 billion , up $254.0 million , or 6%, from June 30, 2024 . The tangible common equity (TCE) ratio was 9.56%, up 79 bps linked-quarter. The company’s CET1 ratio is estimated to be 13.79% at September 30, 2024 , up 54 bps linked-quarter. Total risk-based capital ratio is estimated to be 15.57% at September 30, 2024 , up 57 bps linked-quarter. During the third quarter of 2024, the company repurchased 300,000 shares of its common stock at an average price of $50.60 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 612,993 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, October 15, 2024 to review third quarter of 2024 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 third 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 October 22, 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. 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 effects of war or other conflicts, acts of terrorism, climate change, the impact of natural or man-made disasters, 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 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 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 changes in 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 . HANCOCK WHITNEY CORPORATION FINANCIAL HIGHLIGHTS (Unaudited) Three Months Ended Nine Months Ended (dollars and common share data in thousands, except per share amounts) 9/30/2024 6/30/2024 9/30/2023 9/30/2024 9/30/2023 NET INCOME Net interest income $ 271,764 $ 270,430 $ 269,234 $ 808,365 $ 828,139 Net interest income (TE) (a) 274,457 273,258 272,086 816,716 836,412 Provision for credit losses 18,564 8,723 28,498 40,255 42,151 Noninterest income 95,895 89,174 85,974 272,920 249,529 Noninterest expense 203,839 206,016 204,675 617,577 607,697 Income tax expense 29,684 30,308 24,297 84,712 85,821 Net income $ 115,572 $ 114,557 $ 97,738 $ 338,741 $ 341,999 Supplemental disclosure items - included above, pre-tax Included in noninterest expense FDIC special assessment $ — $ — $ — $ 3,800 $ — PERIOD-END BALANCE SHEET DATA Loans $ 23,455,587 $ 23,911,616 $ 23,983,679 $ 23,455,587 $ 23,983,679 Securities 7,769,780 7,535,836 7,916,101 7,769,780 7,916,101 Earning assets 32,045,222 32,056,415 32,733,591 32,045,222 32,733,591 Total assets 35,238,107 35,412,291 36,298,301 35,238,107 36,298,301 Noninterest-bearing deposits 10,499,476 10,642,213 11,626,371 10,499,476 11,626,371 Total deposits 28,982,905 29,200,718 30,320,337 28,982,905 30,320,337 Common stockholders' equity 4,174,687 3,920,718 3,501,003 4,174,687 3,501,003 AVERAGE BALANCE SHEET DATA Loans $ 23,552,002 $ 23,917,361 $ 23,830,724 $ 23,759,083 $ 23,526,808 Securities (b) 8,218,896 8,214,172 8,888,477 8,210,192 9,010,201 Earning assets 32,263,748 32,539,363 33,137,565 32,452,619 33,171,798 Total assets 34,780,386 34,998,880 35,626,927 34,959,722 35,665,505 Noninterest-bearing deposits 10,359,390 10,526,903 11,453,236 10,519,199 12,184,410 Total deposits 28,940,163 29,069,097 29,757,180 29,189,160 29,311,176 Common stockholders' equity 4,021,211 3,826,296 3,572,487 3,889,265 3,518,105 COMMON SHARE DATA Earnings per share - diluted $ 1.33 $ 1.31 $ 1.12 $ 3.88 $ 3.92 Cash dividends per share 0.40 0.40 0.30 1.10 0.90 Book value per share (period-end) 48.47 45.40 40.64 48.47 40.64 Tangible book value per share (period-end) 38.10 35.04 30.16 38.10 30.16 Weighted average number of shares - diluted 86,560 86,765 86,437 86,650 86,368 Period-end number of shares 86,136 86,355 86,148 86,136 86,148 Market data High sales price $ 57.78 $ 49.11 $ 45.15 $ 57.78 $ 54.38 Low sales price 45.26 41.56 35.34 41.19 31.02 Period-end closing price 51.17 47.83 36.99 51.17 36.99 Trading volume 35,017 29,308 34,506 94,834 112,391 PERFORMANCE RATIOS Return on average assets 1.32 % 1.32 % 1.09 % 1.29 % 1.28 % Return on average common equity 11.43 % 12.04 % 10.85 % 11.63 % 13.00 % Return on average tangible common equity 14.70 % 15.73 % 14.53 % 15.12 % 17.51 % Tangible common equity ratio (c) 9.56 % 8.77 % 7.34 % 9.56 % 7.34 % Net interest margin (TE) 3.39 % 3.37 % 3.27 % 3.36 % 3.37 % Noninterest income as a percentage of total revenue (TE) 25.89 % 24.60 % 24.01 % 25.05 % 22.98 % Efficiency ratio (d) 54.42 % 56.18 % 56.38 % 55.67 % 55.14 % Average loan/deposit ratio 81.38 % 82.28 % 80.08 % 81.40 % 80.27 % Allowance for loan losses as a percentage of period-end loans 1.35 % 1.32 % 1.28 % 1.35 % 1.28 % Allowance for credit losses as a percentage of period-end loans (e) 1.46 % 1.43 % 1.40 % 1.46 % 1.40 % Annualized net charge-offs to average loans 0.30 % 0.12 % 0.64 % 0.19 % 0.27 % Allowance for loan losses as a % of nonaccrual loans 382.87 % 366.54 % 507.68 % 382.87 % 507.68 % FTE headcount 3,458 3,541 3,681 3,458 3,681 (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. HANCOCK WHITNEY CORPORATION QUARTERLY FINANCIAL HIGHLIGHTS (Unaudited) Three Months Ended (dollars and common share data in thousands, except per share amounts) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 NET INCOME Net interest income $ 271,764 $ 270,430 $ 266,171 $ 269,460 $ 269,234 Net interest income (TE) (a) 274,457 273,258 269,001 272,294 272,086 Provision for credit losses 18,564 8,723 12,968 16,952 28,498 Noninterest income 95,895 89,174 87,851 38,951 85,974 Noninterest expense 203,839 206,016 207,722 229,151 204,675 Income tax expense 29,684 30,308 24,720 11,705 24,297 Net income $ 115,572 $ 114,557 $ 108,612 $ 50,603 $ 97,738 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 $ 23,455,587 $ 23,911,616 $ 23,970,938 $ 23,921,917 $ 23,983,679 Securities 7,769,780 7,535,836 7,559,182 7,599,974 7,916,101 Earning assets 32,045,222 32,056,415 31,985,610 32,175,097 32,733,591 Total assets 35,238,107 35,412,291 35,247,119 35,578,573 36,298,301 Noninterest-bearing deposits 10,499,476 10,642,213 10,802,127 11,030,515 11,626,371 Total deposits 28,982,905 29,200,718 29,775,906 29,690,059 30,320,337 Common stockholders' equity 4,174,687 3,920,718 3,853,436 3,803,661 3,501,003 AVERAGE BALANCE SHEET DATA Loans $ 23,552,002 $ 23,917,361 $ 23,810,163 $ 23,795,681 $ 23,830,724 Securities (b) 8,218,896 8,214,172 8,197,410 8,579,444 8,888,477 Earning assets 32,263,748 32,539,363 32,556,821 33,128,130 33,137,565 Total assets 34,780,386 34,998,880 35,101,869 35,538,300 35,626,927 Noninterest-bearing deposits 10,359,390 10,526,903 10,673,060 11,132,354 11,453,236 Total deposits 28,940,163 29,069,097 29,560,956 29,974,941 29,757,180 Common stockholders' equity 4,021,211 3,826,296 3,818,840 3,560,978 3,572,487 COMMON SHARE DATA Earnings per share - diluted $ 1.33 $ 1.31 $ 1.24 $ 0.58 $ 1.12 Cash dividends per share 0.40 0.40 0.30 0.30 0.30 Book value per share (period-end) 48.47 45.40 44.49 44.05 40.64 Tangible book value per share (period-end) 38.10 35.04 34.12 33.63 30.16 Weighted average number of shares - diluted 86,560 86,765 86,726 86,604 86,437 Period-end number of shares 86,136 86,355 86,622 86,345 86,148 Market data High sales price $ 57.78 $ 49.11 $ 49.10 $ 49.65 $ 45.15 Low sales price 45.26 41.56 41.19 32.16 35.34 Period-end closing price 51.17 47.83 46.04 48.59 36.99 Trading volume 35,017 29,308 30,508 38,574 34,506 PERFORMANCE RATIOS Return on average assets 1.32 % 1.32 % 1.24 % 0.56 % 1.09 % Return on average common equity 11.43 % 12.04 % 11.44 % 5.64 % 10.85 % Return on average tangible common equity 14.70 % 15.73 % 14.96 % 7.55 % 14.53 % Tangible common equity ratio (c) 9.56 % 8.77 % 8.61 % 8.37 % 7.34 % Net interest margin (TE) 3.39 % 3.37 % 3.32 % 3.27 % 3.27 % Noninterest income as a percentage of total revenue (TE) 25.89 % 24.60 % 24.62 % 12.51 % 24.01 % Efficiency ratio (d) 54.42 % 56.18 % 56.44 % 55.58 % 56.38 % Average loan/deposit ratio 81.38 % 82.28 % 80.55 % 79.39 % 80.08 % Allowance for loan losses as a percentage of period-end loans 1.35 % 1.32 % 1.31 % 1.29 % 1.28 % Allowance for credit losses as a percentage of period-end loans (e) 1.46 % 1.43 % 1.42 % 1.41 % 1.40 % Annualized net charge-offs to average loans 0.30 % 0.12 % 0.15 % 0.27 % 0.64 % Allowance for loan losses as a % of nonaccrual loans 382.87 % 366.54 % 382.21 % 521.56 % 507.68 % FTE headcount 3,458 3,541 3,564 3,591 3,681 (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. View source version on businesswire.com : https://www.businesswire.com/news/home/20241015791507/en/ Kathryn Shrout Mistich , VP, Investor Relations Manager 504.539.7836 or [email protected] Source: Hancock Whitney Corporation

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