8-K
HANCOCK WHITNEY CORP (HWC)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
________________
FORM 8-K
________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 19, 2021
________________
| HANCOCK WHITNEY CORPORATION | |||
|---|---|---|---|
| (Exact Name of Registrant as Specified in Charter)<br>________________ | |||
| Mississippi | 64-0693170 | ||
| (State or Other Jurisdiction<br>of Incorporation) | (IRS Employer<br><br><br>Identification No.) | ||
| Hancock Whitney Plaza<br>2510 14th Street<br>Gulfport, Mississippi<br>(Address of Principal Executive Offices) | 39501<br><br><br>(Zip Code) | ||
| Registrant’s telephone number, including area code: (228) 868-4000 | |||
| Securities registered pursuant to Section 12(b) of the Act: | |||
| Title of Each Class<br>COMMON STOCK, 3.33 PAR VALUE<br>6.25% SUBORDINATED NOTES | Trading Symbol<br><br><br>HWC<br><br><br>HWCPZ | Name of Exchange on Which Registered<br><br><br>The NASDAQ Stock Market, LLC<br><br><br>The NASDAQ Stock Market, LLC | |
| __________________ |
All values are in US Dollars.
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act (17 CFR 230.405) or Rule 12b-2 of the Exchange Act (17 CFR 240.12b-2)
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02Results of Operations and Financial Condition.
On October 19, 2021, Hancock Whitney Corporation (the “Company”) announced financial results for its third quarter ended September 30, 2021. A copy of this press release and the accompanying financial statements are attached hereto as Exhibit 99.1 and is incorporated by reference into this Item 2.02. The press release is available on the Company’s website.
The information provided in Item 2.02 of this report, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
Item 7.01Regulation FD Disclosure.
On October 19, 2021 at 4:00 p.m. (Central Time), the Company intends to hold an investor call and webcast to discuss financial results for the quarter ended September 30, 2021, including the press release. Additional presentation materials relating to such call are furnished hereto as Exhibit 99.2 and are, along with the press release and financial statements, incorporated herein by reference. All information in the press release and presentation materials speak as of the date thereof and the Company does not assume any obligation to update said information in the future. In addition, the Company disclaims any inferences regarding the materiality of such information which otherwise may arise as a result of it furnishing such information under Item 2.02 or Item 7.01 of this Form 8-K.
In accordance with the General Instruction B.2 of Form 8-K, the information presented herein pursuant to Item 2.02, “Results of Operations,” and Item 7.01, “Regulation FD,” shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall the information be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit<br><br><br>Number | Description |
|---|---|
| 99.1 | Press Release dated October 19, 2021 for Quarter Ended September 30, 2021. |
| 99.2 | Presentation Slides dated October 19, 2021 (furnished with the Commission as part of this Form 8-K). |
| 104 | Cover Page Interactive Data File (embedded within the inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HANCOCK WHITNEY CORPORATION | ||
|---|---|---|
| October 19, 2021 | By: | /s/ Michael M. Achary |
| Michael M. Achary | ||
| Chief Financial Officer |
hwc-ex991_6.htm
Exhibit 99.1
 <br><br><br>FOR IMMEDIATE RELEASE<br><br><br>October 19, 2021 |
|---|
For more information
Trisha Voltz Carlson, EVP, Investor Relations Manager
504.299.5208 or trisha.carlson@hancockwhitney.com
Hancock Whitney reports third quarter 2021 EPS of $1.46
GULFPORT, Miss. (October 19, 2021) — Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the third quarter of 2021. Net income for the third quarter of 2021 was $129.6 million, or $1.46 per diluted common share (EPS), compared to $88.7 million, or $1.00 per diluted common share, in the second quarter of 2021. The company reported net income for the third quarter of 2020 of $79.4 million, or $0.90 per diluted common share. The third quarter of 2021 included ($1.4) million, or ($0.01) per share after-tax, of net nonoperating income items. These items included Hurricane Ida expenses of $5.1 million and severance reversal ($1.9) million, offset by the gain of $4.6 million from the sale of the remaining Hancock Horizon Funds. The second quarter of 2021 included $42.2 million, or $0.37 per share after-tax, of net nonoperating items. The items include the previously announced branch closures (20), subordinated debt redemption and Voluntary Early Retirement Program (VERP), plus the cost associated with an additional 18 branch closures and a 200-position reduction in force.
Third Quarter 2021 Highlights
| • | Pre-provision net revenue (PPNR) totaled $134.8 million, down $2.4 million, or 2%, linked-quarter |
|---|---|
| • | Core loan growth of $219.7 million, offset by the impact of $482.2 million in PPP loan forgiveness leading to an overall decline in total loans of $262.5 million |
| --- | --- |
| • | Deposits decreased $65.0 million linked-quarter; noninterest-bearing demand deposits increased $247.0 million |
| --- | --- |
| • | $28.8 million reserve release and $1.8 million in net charge-offs led to a negative provision for credit losses of $27.0 million |
| --- | --- |
| • | ACL coverage remained strong at 1.92% (2.00% excluding PPP loans) |
| --- | --- |
| • | Both nonperforming loans and criticized commercial loans declined 27% and 11%, respectively, |
| --- | --- |
linked-quarter
| • | The continued impact of excess liquidity, driven mainly by PPP loan forgiveness, led to a 2 bps compression in reported NIM |
|---|---|
| • | TCE ratio 7.85%, up 15 bps |
| --- | --- |
“We are pleased to report another quarter of solid results, despite the impacts of Hurricane Ida and the COVID-19 Delta surge,“ said John M. Hairston, President and CEO. “Our balance sheet remained strong as core loan growth momentum continued and DDA deposits increased during the quarter. Despite a slight compression in the NIM, net interest income was steady in the quarter, as was operating expense. Fees were lower linked-quarter, mainly the result of secondary mortgage volume reductions, as well as the result of waivers and activity related to Hurricane Ida disruption. Our asset quality metrics continue to improve and are now among the best in the mid-cap group. We do not anticipate any significant credit impact post-hurricane. Capital is strong and we
expect to achieve an 8% TCE, or better, by year-end 2021. We view third quarter of 2021 and near term guidance as continued momentum toward 2022 and our path to a 55% efficiency ratio.”
Loans
Loan growth momentum is continuing in both markets and specialty lines. Growth in the western and central regions, in addition to equipment finance and healthcare, was partly offset by PPP loan forgiveness and amortizing portfolios of indirect and energy. Core loans increased $219.7 million, related to fewer payoffs and paydowns, a slight increase in line utilizations rates and increased loan pipeline pull-through rate. During the quarter, $482.2 million in PPP loans were forgiven. Loans totaled $20.9 billion at September 30, 2021, down $262.5 million, or 1%, linked-quarter.
Average loans totaled $20.9 billion for the third quarter of 2021, down $447.6 million, or 2%, linked-quarter. ~~~~ Management expects year-end loans to total approximately $20.4 billion, or a 3%, increase year-over-year.
Deposits
Excess liquidity related to stimulus and other pandemic-related client funds contributed to the third quarter of 2021’s elevated level of deposits. Total deposits at September 30, 2021 were $29.2 billion, down $65.0 million, or less than 1%, from June 30, 2021.
DDAs totaled $13.7 billion at September 30, 2021, up $247.0 million, or 2%, from June 30, 2021 and comprised 47% of total period-end deposits. Interest-bearing transaction and savings deposits totaled $11.3 billion at the end of the third quarter of 2021, flat linked-quarter. Compared to June 30, 2021, time deposits of $1.2 billion were down $143.7 million, or 11%. Interest-bearing public fund deposits decreased $151.4 million, or 5%, linked-quarter, ending September at $3.1 billion.
Average deposits for the third quarter of 2021 were $29.2 billion, virtually unchanged linked-quarter.
Asset Quality
The total allowance for credit losses (ACL) was $400.5 million at September 30, 2021, down $28.8 million from June 30, 2021. During the third quarter of 2021, the company recorded a negative provision for credit losses of $27.0 million, compared to a negative provision of $17.2 million in the second quarter of 2021. Net charge-offs totaled $1.8 million in the third quarter of 2021, or 0.03% of average total loans on an annualized basis, down from $10.5 million, or 0.20% of average total loans in the second quarter of 2021. The ratio of ACL to period-end loans was 1.92% (2.00% excluding PPP loans) at September 30, 2021, compared to 2.03% (2.17% excluding PPP loans) at June 30, 2021.
The company’s overall asset quality metrics continued to improve with commercial criticized and total nonperforming loans down 11% and 27%, respectively, linked-quarter. Nonperforming assets (NPAs) totaled $71.9 million at September 30, 2021, down $25.7 million, or 26%, from June 30, 2021. During the third quarter of 2021, total nonperforming loans decreased $24.0 million, or 27%, while ORE and foreclosed assets were down $1.8 million, or 17% linked-quarter. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 0.34% at September 30, 2021, down 12 bps from June 30, 2021.
Net Interest Income and Net Interest Margin (NIM)
Net interest income (TE) for the third quarter of 2021 was $237.5 million, virtually unchanged from the second quarter of 2021.
The net interest margin (NIM) was 2.94% in the third quarter of 2021, a decline of 2 bps linked-quarter. Factors driving the change in NIM include a full quarter’s impact from the sub-debt redemption in June 2021 (+2 bps) and the impact of lower deposit costs (+3 bps), offset by a change in earning asset mix (-6 bps) and the net impact of interest recoveries (-1 bp).
Average earning assets were $32.1 billion for the third quarter of 2021, down $98.1 million, or less than 1%, from the second quarter of 2021.
Management expects continued NIM compression in the fourth quarter of 2021 with net interest income down slightly linked-quarter.
Noninterest Income
Noninterest income totaled $93.4 million for the third quarter of 2021, down $0.9 million, or 1%, from the second quarter of 2021. Included in noninterest income was a $4.6 million gain from the sale of the remaining Hancock Horizon Funds. In the second quarter of 2021, noninterest income included $2.8 million related to the sale of Mastercard class B common stock. Adjusting for these items, noninterest income totaled $88.8 million in the third quarter, down $2.7 million, or 3%, linked-quarter.
Service charges on deposits were up $1.8 million, or 9%, from the second quarter of 2021, driven by an additional posting day, lower earnings credit rates, seasonality and higher customer activity. Bankcard and ATM fees were down $0.6 million, or 3%, from the second quarter of 2021, mainly impacted by Hurricane Ida evacuation, branch and ATM closures and fee waivers.
Investment and annuity income and insurance fees were down $0.2 million, or 2%, linked-quarter. Trust fees were down $0.3 million, or 2% linked-quarter, reflecting second quarter seasonality in tax prep fees and a third quarter impact of Hurricane Ida.
Fees from secondary mortgage operations totaled $7.0 million for the third quarter of 2021, down $5.6 million, or 44%, linked-quarter, mainly from the impact of Hurricane Ida and a diversification in delivery methods in the second quarter of 2021.
Other noninterest income totaled $22.2 million, up $4.0 million, or 22%, from the second quarter of 2021. The increase is primarily due to the gain on sale of Hancock Horizon Funds noted above.
Noninterest Expense & Taxes
Noninterest expense totaled $194.7 million, down $42.1 million, or 18% linked-quarter. Included in the total was $3.2 million of net nonoperating expenses related primarily to Hurricane Ida, which were partly offset by a reversal of severance. In the second quarter of 2021, noninterest expense included $45.0 million related to
previously announced efficiency initiatives. Excluding these items, operating expense was down $0.3 million, or less than 1%, linked-quarter.
Personnel expense (operating) totaled $113.8 million in the third quarter of 2021, down $3.5 million, or 3%, linked-quarter. The decrease is mainly related to the savings associated with efficiency initiatives noted last quarter.
Occupancy and equipment expense totaled $16.9 million in the third quarter of 2021, down $0.5 million, or 3%, from the second quarter of 2021. Amortization of intangibles totaled $4.1 million for the third quarter of 2021, down $0.2 million, or 4%, linked-quarter.
Gains on sales of ORE and other foreclosed assets exceeded expenses by $0.4 million in the third quarter of 2021, compared to an expense of $0.1 million in the second quarter of 2021.
Other operating expense totaled $61.1 million in the third quarter of 2021, up $3.9 million, or 7%, linked-quarter. The linked-quarter change is primarily due to increased advertising expense and other miscellaneous items.
The effective income tax rate for third quarter 2021 was 19.2%. The effective income tax rate continues to be less than the statutory rate due primarily to tax-exempt income and tax credits.
Capital
Common stockholders’ equity at September 30, 2021 totaled $3.6 billion, up $66.9 million, or 2%, from June 30, 2021. The tangible common equity (TCE) ratio was 7.85%, up 15 bps from June 30, 2021, mainly the result of earnings, partially offset by OCI, dividends and growth in tangible assets. The company remains well capitalized, with both bank and holding company capital levels in excess of required regulatory minimums. The company’s CET1 ratio is estimated to be 11.19% at September 30, 2021, up 21 bps linked-quarter. During the third quarter of 2021, the company bought back 56,349 shares of its common stock at an average price of $44.49 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.
Conference Call and Slide Presentation
Management will host a conference call for analysts and investors at 4:00 p.m. Central Time on Tuesday, October 19, 2021 to review the 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 second 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 496046.
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 24, 2021 by dialing 866-813-9403 or 929-458-6194, access code 201534.
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. BauerFinancial, Inc., the nation’s leading independent bank rating and analysis firm, consistently recommends Hancock Whitney as one of America’s most financially sound banks. 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. 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 adequacy of our enterprise risk management framework, 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 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 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.
Given the many unknowns and risks being heavily weighted to the downside, our forward-looking statements are subject to the risk that conditions will be substantially different than we are currently expecting. If efforts to contain and inoculate our population against COVID-19, and other variants thereof, are unsuccessful and restrictions on movement are re-imposed, the economic impact could continue to be substantial. The COVID-19 outbreak and its consequences, including responsive measures to manage it, have had and are likely to continue to have an adverse effect, possibly materially, on our business and financial performance by adversely affecting, possibly materially, the demand and profitability of our products and services, the valuation of assets and our ability to meet the needs of our customers.
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.” 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, 2020 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) | 9/30/2021 | 6/30/2021 | 9/30/2020 | 9/30/2021 | 9/30/2020 | ||||||||||
| NET INCOME | |||||||||||||||
| Net interest income | $ | 234,709 | $ | 234,643 | $ | 235,183 | $ | 703,939 | $ | 704,237 | |||||
| Net interest income (TE) (a) | 237,477 | 237,497 | 238,372 | 712,483 | 714,122 | ||||||||||
| Provision for credit losses | (26,955 | ) | (17,229 | ) | 24,999 | (49,095 | ) | 578,690 | |||||||
| Noninterest income | 93,361 | 94,272 | 83,748 | 274,722 | 242,078 | ||||||||||
| Noninterest expense | 194,703 | 236,770 | 195,774 | 624,545 | 595,648 | ||||||||||
| Income tax expense (benefit) | 30,740 | 20,656 | 18,802 | 77,739 | (79,274 | ) | |||||||||
| Net income (loss) | $ | 129,582 | $ | 88,718 | $ | 79,356 | $ | 325,472 | $ | (148,749 | ) | ||||
| For informational purposes - included above, pre-tax | |||||||||||||||
| Nonoperating item included in noninterest income: | |||||||||||||||
| Gain on sale of Hancock Horizon Funds | $ | 4,576 | $ | — | $ | — | $ | 4,576 | $ | — | |||||
| Gain on sale of Mastercard Class B common stock | — | 2,800 | — | 2,800 | — | ||||||||||
| Nonoperating items included in noninterest expense: | |||||||||||||||
| Efficiency initiatives | (1,867 | ) | 40,812 | — | 38,945 | — | |||||||||
| Hurricane related expenses | 5,092 | — | — | 5,092 | — | ||||||||||
| Loss on redemption of subordinated notes | — | 4,165 | — | 4,165 | — | ||||||||||
| Provision for credit loss associated with energy loan sale | — | — | — | — | 160,101 | ||||||||||
| PERIOD-END BALANCE SHEET DATA | |||||||||||||||
| Loans | $ | 20,886,015 | $ | 21,148,530 | $ | 22,240,204 | $ | 20,886,015 | $ | 22,240,204 | |||||
| Securities | 8,308,622 | 8,633,133 | 7,056,276 | 8,308,622 | 7,056,276 | ||||||||||
| Earning assets | 32,348,036 | 32,075,450 | 30,179,103 | 32,348,036 | 30,179,103 | ||||||||||
| Total assets | 35,318,308 | 35,098,709 | 33,193,324 | 35,318,308 | 33,193,324 | ||||||||||
| Noninterest-bearing deposits | 13,653,376 | 13,406,385 | 11,881,548 | 13,653,376 | 11,881,548 | ||||||||||
| Total deposits | 29,208,157 | 29,273,107 | 27,030,659 | 29,208,157 | 27,030,659 | ||||||||||
| Common stockholders' equity | 3,629,766 | 3,562,901 | 3,375,644 | 3,629,766 | 3,375,644 | ||||||||||
| AVERAGE BALANCE SHEET DATA | |||||||||||||||
| Loans | $ | 20,941,173 | $ | 21,388,814 | $ | 22,407,825 | $ | 21,355,483 | $ | 22,200,385 | |||||
| Securities (b) | 8,368,824 | 8,194,812 | 6,389,214 | 8,014,023 | 6,223,361 | ||||||||||
| Earning assets | 32,097,381 | 32,195,515 | 29,412,261 | 31,773,473 | 29,020,349 | ||||||||||
| Total assets | 35,207,960 | 35,165,684 | 32,685,430 | 34,821,420 | 32,163,823 | ||||||||||
| Noninterest-bearing deposits | 13,535,961 | 13,237,796 | 11,585,617 | 13,053,586 | 10,450,457 | ||||||||||
| Total deposits | 29,237,306 | 29,228,809 | 26,763,795 | 28,872,317 | 25,934,258 | ||||||||||
| Common stockholders' equity | 3,606,087 | 3,488,592 | 3,351,593 | 3,512,651 | 3,441,981 | ||||||||||
| COMMON SHARE DATA | |||||||||||||||
| Earnings (loss) per share - diluted | $ | 1.46 | $ | 1.00 | $ | 0.90 | $ | 3.67 | $ | (1.73 | ) | ||||
| Cash dividends per share | 0.27 | 0.27 | 0.27 | 0.81 | 0.81 | ||||||||||
| Book value per share (period-end) | 41.81 | 41.03 | 39.07 | 41.81 | 39.07 | ||||||||||
| Tangible book value per share (period-end) | 31.10 | 30.27 | 28.11 | 31.10 | 28.11 | ||||||||||
| Weighted average number of shares - diluted | 87,006 | 86,990 | 86,400 | 86,951 | 86,614 | ||||||||||
| Period-end number of shares | 86,823 | 86,847 | 86,400 | 86,823 | 86,400 | ||||||||||
| Market data | |||||||||||||||
| High sales price | $ | 48.19 | $ | 50.69 | $ | 22.23 | $ | 50.69 | $ | 44.24 | |||||
| Low sales price | 39.07 | 40.25 | 17.42 | 32.52 | 14.32 | ||||||||||
| Period-end closing price | 47.12 | 44.44 | 18.81 | 47.12 | 18.81 | ||||||||||
| Trading volume | 22,482 | 25,570 | 32,139 | 77,015 | 130,703 | ||||||||||
| PERFORMANCE RATIOS | |||||||||||||||
| Return on average assets | 1.46 | % | 1.01 | % | 0.97 | % | 1.25 | % | (0.62 | )% | |||||
| Return on average common equity | 14.26 | % | 10.20 | % | 9.42 | % | 12.39 | % | (5.77 | )% | |||||
| Return on average tangible common equity | 19.22 | % | 13.94 | % | 13.14 | % | 16.89 | % | (7.99 | )% | |||||
| Tangible common equity ratio (c) | 7.85 | % | 7.70 | % | 7.53 | % | 7.85 | % | 7.53 | % | |||||
| Net interest margin (TE) | 2.94 | % | 2.96 | % | 3.23 | % | 3.00 | % | 3.29 | % | |||||
| Noninterest income as a percent of total revenue (TE) | 28.22 | % | 28.41 | % | 26.00 | % | 27.83 | % | 25.32 | % | |||||
| Efficiency ratio (d) | 57.44 | % | 57.01 | % | 59.29 | % | 57.52 | % | 60.69 | % | |||||
| Average loan/deposit ratio | 71.62 | % | 73.18 | % | 83.72 | % | 73.97 | % | 85.61 | % | |||||
| Allowance for loan losses as a percentage of period-end loans | 1.78 | % | 1.89 | % | 2.02 | % | 1.78 | % | 2.02 | % | |||||
| Allowance for credit losses as a percent of period-end loans (e) | 1.92 | % | 2.03 | % | 2.16 | % | 1.92 | % | 2.16 | % | |||||
| Annualized net charge-offs to average loans | 0.03 | % | 0.20 | % | 0.43 | % | 0.19 | % | 2.23 | % | |||||
| Allowance for loan losses to nonperforming loans + accruing loans 90 days past due | 506.17 | % | 415.00 | % | 234.89 | % | 506.17 | % | 234.89 | % | |||||
| FTE headcount | 3,429 | 3,626 | 4,058 | 3,429 | 4,058 |
(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 nonoperating items.
(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) | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | ||||||||||
| NET INCOME | |||||||||||||||
| Net interest income | $ | 234,709 | $ | 234,643 | $ | 234,587 | $ | 238,286 | $ | 235,183 | |||||
| Net interest income (TE) (a) | 237,477 | 237,497 | 237,509 | 241,401 | 238,372 | ||||||||||
| Provision for credit losses | (26,955 | ) | (17,229 | ) | (4,911 | ) | 24,214 | 24,999 | |||||||
| Noninterest income | 93,361 | 94,272 | 87,089 | 82,350 | 83,748 | ||||||||||
| Noninterest expense | 194,703 | 236,770 | 193,072 | 193,144 | 195,774 | ||||||||||
| Income tax expense (benefit) | 30,740 | 20,656 | 26,343 | (297 | ) | 18,802 | |||||||||
| Net income | $ | 129,582 | $ | 88,718 | $ | 107,172 | $ | 103,575 | $ | 79,356 | |||||
| For informational purposes - included above, pre-tax | |||||||||||||||
| Nonoperating item included in noninterest income: | |||||||||||||||
| 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 | (1,867 | ) | 40,812 | — | — | — | |||||||||
| Hurricane related expenses | 5,092 | — | — | — | — | ||||||||||
| Loss on redemption of subordinated notes | — | 4,165 | — | — | — | ||||||||||
| PERIOD-END BALANCE SHEET DATA | |||||||||||||||
| Loans | $ | 20,886,015 | $ | 21,148,530 | $ | 21,664,859 | $ | 21,789,931 | $ | 22,240,204 | |||||
| Securities | 8,308,622 | 8,633,133 | 8,005,990 | 7,356,497 | 7,056,276 | ||||||||||
| Earning assets | 32,348,036 | 32,075,450 | 32,134,637 | 30,616,277 | 30,179,103 | ||||||||||
| Total assets | 35,318,308 | 35,098,709 | 35,072,643 | 33,638,602 | 33,193,324 | ||||||||||
| Noninterest-bearing deposits | 13,653,376 | 13,406,385 | 13,174,911 | 12,199,750 | 11,881,548 | ||||||||||
| Total deposits | 29,208,157 | 29,273,107 | 29,210,520 | 27,697,877 | 27,030,659 | ||||||||||
| Common stockholders' equity | 3,629,766 | 3,562,901 | 3,416,903 | 3,439,025 | 3,375,644 | ||||||||||
| AVERAGE BALANCE SHEET DATA | |||||||||||||||
| Loans | $ | 20,941,173 | $ | 21,388,814 | $ | 21,745,298 | $ | 22,065,672 | $ | 22,407,825 | |||||
| Securities (b) | 8,368,824 | 8,194,812 | 7,468,541 | 6,921,099 | 6,389,214 | ||||||||||
| Earning assets | 32,097,381 | 32,195,515 | 31,015,637 | 29,875,531 | 29,412,261 | ||||||||||
| Total assets | 35,207,960 | 35,165,684 | 34,078,200 | 33,067,462 | 32,685,430 | ||||||||||
| Noninterest-bearing deposits | 13,535,961 | 13,237,796 | 12,374,235 | 11,759,755 | 11,585,617 | ||||||||||
| Total deposits | 29,237,306 | 29,228,809 | 28,138,763 | 27,040,447 | 26,763,795 | ||||||||||
| Common stockholders' equity | 3,606,087 | 3,488,592 | 3,441,466 | 3,406,646 | 3,351,593 | ||||||||||
| COMMON SHARE DATA | |||||||||||||||
| Earnings per share - diluted | $ | 1.46 | $ | 1.00 | $ | 1.21 | $ | 1.17 | $ | 0.90 | |||||
| Cash dividends per share | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | ||||||||||
| Book value per share (period-end) | 41.81 | 41.03 | 39.38 | 39.65 | 39.07 | ||||||||||
| Tangible book value per share (period-end) | 31.10 | 30.27 | 28.57 | 28.79 | 28.11 | ||||||||||
| Weighted average number of shares - diluted | 87,006 | 86,990 | 86,805 | 86,657 | 86,400 | ||||||||||
| Period-end number of shares | 86,823 | 86,847 | 86,777 | 86,728 | 86,400 | ||||||||||
| Market data | |||||||||||||||
| High sales price | $ | 48.19 | $ | 50.69 | $ | 47.37 | $ | 34.89 | $ | 22.23 | |||||
| Low sales price | 39.07 | 40.25 | 32.52 | 18.59 | 17.42 | ||||||||||
| Period-end closing price | 47.12 | 44.44 | 42.01 | 34.02 | 18.81 | ||||||||||
| Trading volume | 22,482 | 25,570 | 28,963 | 27,564 | 32,139 | ||||||||||
| PERFORMANCE RATIOS | |||||||||||||||
| Return on average assets | 1.46 | % | 1.01 | % | 1.28 | % | 1.25 | % | 0.97 | % | |||||
| Return on average common equity | 14.26 | % | 10.20 | % | 12.63 | % | 12.10 | % | 9.42 | % | |||||
| Return on average tangible common equity | 19.22 | % | 13.94 | % | 17.38 | % | 16.74 | % | 13.14 | % | |||||
| Tangible common equity ratio (c) | 7.85 | % | 7.70 | % | 7.26 | % | 7.64 | % | 7.53 | % | |||||
| Net interest margin (TE) | 2.94 | % | 2.96 | % | 3.09 | % | 3.22 | % | 3.23 | % | |||||
| Noninterest income as a percentage of total revenue (TE) | 28.22 | % | 28.41 | % | 26.83 | % | 25.44 | % | 26.00 | % | |||||
| Efficiency ratio (d) | 57.44 | % | 57.01 | % | 58.12 | % | 58.23 | % | 59.29 | % | |||||
| Average loan/deposit ratio | 71.62 | % | 73.18 | % | 77.28 | % | 81.60 | % | 83.72 | % | |||||
| Allowance for loan losses as a percentage of period-end loans | 1.78 | % | 1.89 | % | 1.96 | % | 2.07 | % | 2.02 | % | |||||
| Allowance for credit losses as a percentage of period-end loans (e) | 1.92 | % | 2.03 | % | 2.11 | % | 2.20 | % | 2.16 | % | |||||
| Annualized net charge-offs to average loans | 0.03 | % | 0.20 | % | 0.34 | % | 0.44 | % | 0.43 | % | |||||
| Allowance for loan losses to nonperforming loans + accruing loans 90 days past due | 506.17 | % | 415.00 | % | 354.09 | % | 305.20 | % | 234.89 | % | |||||
| FTE headcount | 3,429 | 3,626 | 3,926 | 3,986 | 4,058 |
(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 nonoperating items.
(e) The allowance for credit losses includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.
| HANCOCK WHITNEY CORPORATION | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| INCOME STATEMENT | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (dollars in thousands, except per share data) | 9/30/2021 | 6/30/2021 | 9/30/2020 | 9/30/2021 | 9/30/2020 | ||||||||||
| NET INCOME | |||||||||||||||
| Interest income | $ | 244,417 | $ | 248,300 | $ | 257,043 | $ | 743,502 | $ | 800,728 | |||||
| Interest income (TE) (f) | 247,185 | 251,154 | 260,232 | 752,046 | 810,613 | ||||||||||
| Interest expense | 9,708 | 13,657 | 21,860 | 39,563 | 96,491 | ||||||||||
| Net interest income (TE) | 237,477 | 237,497 | 238,372 | 712,483 | 714,122 | ||||||||||
| Provision for credit losses | (26,955 | ) | (17,229 | ) | 24,999 | (49,095 | ) | 578,690 | |||||||
| Noninterest income | 93,361 | 94,272 | 83,748 | 274,722 | 242,078 | ||||||||||
| Noninterest expense | 194,703 | 236,770 | 195,774 | 624,545 | 595,648 | ||||||||||
| Income (loss) before income taxes | 160,322 | 109,374 | 98,158 | 403,211 | (228,023 | ) | |||||||||
| Income tax expense (benefit) | 30,740 | 20,656 | 18,802 | 77,739 | (79,274 | ) | |||||||||
| Net income (loss) | $ | 129,582 | $ | 88,718 | $ | 79,356 | $ | 325,472 | $ | (148,749 | ) | ||||
| For informational purposes - included above, pre-tax | |||||||||||||||
| Nonoperating item included in noninterest income: | |||||||||||||||
| Gain on sale of Hancock Horizon Funds | $ | 4,576 | $ | — | $ | — | $ | 4,576 | $ | — | |||||
| Gain on sale of Mastercard Class B common stock | — | 2,800 | — | 2,800 | — | ||||||||||
| Nonoperating items included in noninterest expense: | |||||||||||||||
| Efficiency initiatives | (1,867 | ) | 40,812 | — | 38,945 | — | |||||||||
| Hurricane related expenses | 5,092 | — | — | 5,092 | — | ||||||||||
| Loss on redemption of subordinated notes | — | 4,165 | — | 4,165 | — | ||||||||||
| Provision for credit loss associated with energy loan sale | — | — | — | — | 160,101 | ||||||||||
| NONINTEREST INCOME | |||||||||||||||
| Service charges on deposit accounts | $ | 21,159 | $ | 19,381 | $ | 18,440 | $ | 59,686 | $ | 56,795 | |||||
| Trust fees | 16,041 | 16,307 | 14,424 | 47,351 | 43,390 | ||||||||||
| Bank card and ATM fees | 19,833 | 20,483 | 17,222 | 58,436 | 50,541 | ||||||||||
| Insurance and investment commissions, and annuity fees | 7,167 | 7,331 | 5,988 | 21,956 | 18,504 | ||||||||||
| Secondary mortgage market operations | 6,972 | 12,556 | 12,875 | 31,238 | 28,736 | ||||||||||
| Other income | 22,189 | 18,214 | 14,799 | 56,055 | 44,112 | ||||||||||
| Total noninterest income | $ | 93,361 | $ | 94,272 | $ | 83,748 | $ | 274,722 | $ | 242,078 | |||||
| NONINTEREST EXPENSE | |||||||||||||||
| Personnel expense | $ | 111,978 | $ | 142,654 | $ | 117,856 | $ | 374,247 | $ | 351,814 | |||||
| Net occupancy and equipment expense | 16,868 | 17,347 | 18,546 | 51,906 | 53,996 | ||||||||||
| Other real estate and foreclosed assets expense (income), net | (376 | ) | (86 | ) | (482 | ) | (456 | ) | 9,188 | ||||||
| Other expense | 62,151 | 72,610 | 55,066 | 186,102 | 165,348 | ||||||||||
| Amortization of intangibles | 4,082 | 4,245 | 4,788 | 12,746 | 15,302 | ||||||||||
| Total noninterest expense | $ | 194,703 | $ | 236,770 | $ | 195,774 | $ | 624,545 | $ | 595,648 | |||||
| COMMON SHARE DATA | |||||||||||||||
| Earnings (loss) per share: | |||||||||||||||
| Basic | $ | 1.46 | $ | 1.00 | $ | 0.90 | $ | 3.67 | $ | (1.73 | ) | ||||
| Diluted | 1.46 | 1.00 | 0.90 | 3.67 | (1.73 | ) |
(f) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.
| HANCOCK WHITNEY CORPORATION | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| INCOME STATEMENT | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | |||||||||||||||
| (dollars in thousands, except per share data) | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | ||||||||||
| NET INCOME | |||||||||||||||
| Interest income | $ | 244,417 | $ | 248,300 | $ | 250,785 | $ | 257,253 | $ | 257,043 | |||||
| Interest income (TE) (f) | 247,185 | 251,154 | 253,707 | 260,368 | 260,232 | ||||||||||
| Interest expense | 9,708 | 13,657 | 16,198 | 18,967 | 21,860 | ||||||||||
| Net interest income (TE) | 237,477 | 237,497 | 237,509 | 241,401 | 238,372 | ||||||||||
| Provision for credit losses | (26,955 | ) | (17,229 | ) | (4,911 | ) | 24,214 | 24,999 | |||||||
| Noninterest income | 93,361 | 94,272 | 87,089 | 82,350 | 83,748 | ||||||||||
| Noninterest expense | 194,703 | 236,770 | 193,072 | 193,144 | 195,774 | ||||||||||
| Income before income taxes | 160,322 | 109,374 | 133,515 | 103,278 | 98,158 | ||||||||||
| Income tax expense (benefit) | 30,740 | 20,656 | 26,343 | (297 | ) | 18,802 | |||||||||
| Net income | $ | 129,582 | $ | 88,718 | $ | 107,172 | $ | 103,575 | $ | 79,356 | |||||
| For informational purposes - included above, pre-tax | |||||||||||||||
| Nonoperating item included in noninterest income: | |||||||||||||||
| 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 | (1,867 | ) | 40,812 | — | — | — | |||||||||
| Hurricane related expenses | 5,092 | — | — | — | — | ||||||||||
| Loss on redemption of subordinated notes | — | 4,165 | — | — | — | ||||||||||
| NONINTEREST INCOME | |||||||||||||||
| Service charges on deposit accounts | $ | 21,159 | $ | 19,381 | $ | 19,146 | $ | 19,864 | $ | 18,440 | |||||
| Trust fees | 16,041 | 16,307 | 15,003 | 14,801 | 14,424 | ||||||||||
| Bank card and ATM fees | 19,833 | 20,483 | 18,120 | 17,590 | 17,222 | ||||||||||
| Investment and insurance commissions, and annuity fees | 7,167 | 7,331 | 7,458 | 5,826 | 5,988 | ||||||||||
| Secondary mortgage market operations | 6,972 | 12,556 | 11,710 | 11,508 | 12,875 | ||||||||||
| Other income | 22,189 | 18,214 | 15,652 | 12,761 | 14,799 | ||||||||||
| Total noninterest income | $ | 93,361 | $ | 94,272 | $ | 87,089 | $ | 82,350 | $ | 83,748 | |||||
| NONINTEREST EXPENSE | |||||||||||||||
| Personnel expense | $ | 111,978 | $ | 142,654 | $ | 119,615 | $ | 112,245 | $ | 117,856 | |||||
| Net occupancy and equipment expense | 16,868 | 17,347 | 17,691 | 17,805 | 18,546 | ||||||||||
| Other real estate and foreclosed assets expense (income), net | (376 | ) | (86 | ) | 6 | 367 | (482 | ) | |||||||
| Other expense | 62,151 | 72,610 | 51,341 | 58,113 | 55,066 | ||||||||||
| Amortization of intangibles | 4,082 | 4,245 | 4,419 | 4,614 | 4,788 | ||||||||||
| Total noninterest expense | $ | 194,703 | $ | 236,770 | $ | 193,072 | $ | 193,144 | $ | 195,774 | |||||
| COMMON SHARE DATA | |||||||||||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 1.46 | $ | 1.00 | $ | 1.21 | $ | 1.17 | $ | 0.90 | |||||
| Diluted | 1.46 | 1.00 | 1.21 | 1.17 | 0.90 |
(f) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.
HANCOCK WHITNEY CORPORATION
PERIOD-END BALANCE SHEET
(Unaudited)
| (dollars in thousands) | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS | |||||||||||||||
| Commercial non-real estate loans | $ | 9,416,990 | $ | 9,532,710 | $ | 10,091,342 | $ | 9,986,983 | $ | 10,257,788 | |||||
| Commercial real estate - owner occupied loans | 2,812,926 | 2,809,868 | 2,795,104 | 2,857,445 | 2,779,407 | ||||||||||
| Total commercial and industrial loans | 12,229,916 | 12,342,578 | 12,886,446 | 12,844,428 | 13,037,195 | ||||||||||
| Commercial real estate - income producing loans | 3,467,939 | 3,419,028 | 3,411,028 | 3,357,939 | 3,406,554 | ||||||||||
| Construction and land development loans | 1,213,991 | 1,295,036 | 1,122,141 | 1,065,057 | 1,096,149 | ||||||||||
| Residential mortgage loans | 2,351,053 | 2,412,459 | 2,488,792 | 2,665,212 | 2,754,388 | ||||||||||
| Consumer loans | 1,623,116 | 1,679,429 | 1,756,452 | 1,857,295 | 1,945,918 | ||||||||||
| Total loans | 20,886,015 | 21,148,530 | 21,664,859 | 21,789,931 | 22,240,204 | ||||||||||
| Loans held for sale | 90,618 | 90,002 | 124,677 | 136,063 | 103,566 | ||||||||||
| Securities | 8,308,622 | 8,633,133 | 8,005,990 | 7,356,497 | 7,056,276 | ||||||||||
| Short-term investments | 3,062,781 | 2,203,785 | 2,339,111 | 1,333,786 | 779,057 | ||||||||||
| Earning assets | 32,348,036 | 32,075,450 | 32,134,637 | 30,616,277 | 30,179,103 | ||||||||||
| Allowance for loan losses | (371,521 | ) | (399,668 | ) | (424,360 | ) | (450,177 | ) | (448,674 | ) | |||||
| Goodwill and other intangible assets | 929,599 | 933,681 | 937,926 | 942,345 | 946,958 | ||||||||||
| Other assets | 2,412,194 | 2,489,246 | 2,424,440 | 2,530,157 | 2,515,937 | ||||||||||
| Total assets | $ | 35,318,308 | $ | 35,098,709 | $ | 35,072,643 | $ | 33,638,602 | $ | 33,193,324 | |||||
| LIABILITIES | |||||||||||||||
| Noninterest-bearing deposits | $ | 13,653,376 | $ | 13,406,385 | $ | 13,174,911 | $ | 12,199,750 | $ | 11,881,548 | |||||
| Interest-bearing transaction and savings deposits | 11,291,878 | 11,308,744 | 11,200,412 | 10,413,870 | 9,971,869 | ||||||||||
| Interest-bearing public fund deposits | 3,055,388 | 3,206,799 | 3,198,523 | 3,234,936 | 3,176,225 | ||||||||||
| Time deposits | 1,207,515 | 1,351,179 | 1,636,674 | 1,849,321 | 2,001,017 | ||||||||||
| Total interest-bearing deposits | 15,554,781 | 15,866,722 | 16,035,609 | 15,498,127 | 15,149,111 | ||||||||||
| Total deposits | 29,208,157 | 29,273,107 | 29,210,520 | 27,697,877 | 27,030,659 | ||||||||||
| Short-term borrowings | 1,745,228 | 1,516,508 | 1,652,747 | 1,667,513 | 1,906,895 | ||||||||||
| Long-term debt | 248,011 | 248,052 | 397,583 | 378,322 | 385,887 | ||||||||||
| Other liabilities | 487,146 | 498,141 | 394,890 | 455,865 | 494,239 | ||||||||||
| Total liabilities | 31,688,542 | 31,535,808 | 31,655,740 | 30,199,577 | 29,817,680 | ||||||||||
| COMMON STOCKHOLDERS' EQUITY | |||||||||||||||
| Common stock net of treasury and capital surplus | 2,084,387 | 2,080,486 | 2,073,658 | 2,067,450 | 2,064,828 | ||||||||||
| Retained earnings | 1,545,181 | 1,439,553 | 1,374,688 | 1,291,506 | 1,211,878 | ||||||||||
| Accumulated other comprehensive income (loss) | 198 | 42,862 | (31,443 | ) | 80,069 | 98,938 | |||||||||
| Total common stockholders' equity | 3,629,766 | 3,562,901 | 3,416,903 | 3,439,025 | 3,375,644 | ||||||||||
| Total liabilities & stockholders' equity | $ | 35,318,308 | $ | 35,098,709 | $ | 35,072,643 | $ | 33,638,602 | $ | 33,193,324 | |||||
| For informational purposes only - included above | |||||||||||||||
| SBA Paycheck Protection Program (PPP) loans | $ | 935,330 | $ | 1,417,523 | $ | 2,345,605 | $ | 2,005,237 | $ | 2,323,691 | |||||
| CAPITAL RATIOS | |||||||||||||||
| Tangible common equity | $ | 2,700,167 | $ | 2,629,220 | $ | 2,478,977 | $ | 2,496,680 | $ | 2,428,686 | |||||
| Tier 1 capital (g) | 2,798,495 | 2,692,065 | 2,622,973 | 2,534,049 | 2,446,382 | ||||||||||
| Common equity as a percentage of total assets | 10.28 | % | 10.15 | % | 9.74 | % | 10.22 | % | 10.17 | % | |||||
| Tangible common equity ratio | 7.85 | % | 7.70 | % | 7.26 | % | 7.64 | % | 7.53 | % | |||||
| Leverage (Tier 1) ratio (g) | 8.15 | % | 7.83 | % | 7.89 | % | 7.88 | % | 7.70 | % | |||||
| Common equity tier 1 (CET1) ratio (g) | 11.19 | % | 10.98 | % | 11.00 | % | 10.61 | % | 10.30 | % | |||||
| Tier 1 risk-based capital ratio (g) | 11.19 | % | 10.98 | % | 11.00 | % | 10.61 | % | 10.30 | % | |||||
| Total risk-based capital ratio (g) | 13.09 | % | 12.94 | % | 13.60 | % | 13.22 | % | 12.92 | % |
(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.
HANCOCK WHITNEY CORPORATION
AVERAGE BALANCE SHEET
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | 9/30/2021 | 6/30/2021 | 9/30/2020 | 9/30/2021 | 9/30/2020 | ||||||||||
| ASSETS | |||||||||||||||
| Commercial non-real estate loans | $ | 9,379,155 | $ | 9,889,904 | $ | 10,366,814 | $ | 9,771,661 | $ | 10,102,798 | |||||
| Commercial real estate - owner occupied loans | 2,818,968 | 2,782,362 | 2,744,372 | 2,813,427 | 2,748,817 | ||||||||||
| Total commercial and industrial loans | 12,198,123 | 12,672,266 | 13,111,186 | 12,585,088 | 12,851,615 | ||||||||||
| Commercial real estate - income producing loans | 3,485,583 | 3,420,781 | 3,374,446 | 3,425,191 | 3,240,865 | ||||||||||
| Construction and land development loans | 1,234,637 | 1,140,065 | 1,121,554 | 1,150,104 | 1,124,998 | ||||||||||
| Residential mortgage loans | 2,376,500 | 2,442,956 | 2,807,568 | 2,472,496 | 2,899,588 | ||||||||||
| Consumer loans | 1,646,330 | 1,712,746 | 1,993,071 | 1,722,604 | 2,083,319 | ||||||||||
| Total loans | 20,941,173 | 21,388,814 | 22,407,825 | 21,355,483 | 22,200,385 | ||||||||||
| Loans held for sale | 82,588 | 89,638 | 112,230 | 94,553 | 80,942 | ||||||||||
| Securities (h) | 8,368,824 | 8,194,812 | 6,389,214 | 8,014,023 | 6,223,361 | ||||||||||
| Short-term investments | 2,704,796 | 2,522,251 | 502,992 | 2,309,414 | 515,661 | ||||||||||
| Earning assets | 32,097,381 | 32,195,515 | 29,412,261 | 31,773,473 | 29,020,349 | ||||||||||
| Allowance for loan losses | (392,767 | ) | (418,753 | ) | (446,901 | ) | (420,900 | ) | (371,646 | ) | |||||
| Goodwill and other intangible assets | 931,584 | 935,737 | 949,287 | 935,767 | 954,328 | ||||||||||
| Other assets | 2,571,762 | 2,453,185 | 2,770,783 | 2,533,080 | 2,560,792 | ||||||||||
| Total assets | $ | 35,207,960 | $ | 35,165,684 | $ | 32,685,430 | $ | 34,821,420 | $ | 32,163,823 | |||||
| LIABILITIES AND COMMON STOCKHOLDERS' EQUITY | |||||||||||||||
| Noninterest-bearing deposits | $ | 13,535,961 | $ | 13,237,796 | $ | 11,585,617 | $ | 13,053,586 | $ | 10,450,457 | |||||
| Interest-bearing transaction and savings deposits | 11,341,034 | 11,315,790 | 9,806,826 | 11,152,935 | 9,332,604 | ||||||||||
| Interest-bearing public fund deposits | 3,085,452 | 3,208,718 | 3,196,767 | 3,167,956 | 3,256,228 | ||||||||||
| Time deposits | 1,274,859 | 1,466,505 | 2,174,585 | 1,497,840 | 2,894,969 | ||||||||||
| Total interest-bearing deposits | 15,701,345 | 15,991,013 | 15,178,178 | 15,818,731 | 15,483,801 | ||||||||||
| Total deposits | 29,237,306 | 29,228,809 | 26,763,795 | 28,872,317 | 25,934,258 | ||||||||||
| Short-term borrowings | 1,612,253 | 1,661,015 | 1,733,298 | 1,653,600 | 2,044,923 | ||||||||||
| Long-term debt | 248,019 | 371,892 | 386,015 | 338,336 | 298,436 | ||||||||||
| Other liabilities | 504,295 | 415,376 | 450,729 | 444,516 | 444,225 | ||||||||||
| Common stockholders' equity | 3,606,087 | 3,488,592 | 3,351,593 | 3,512,651 | 3,441,981 | ||||||||||
| Total liabilities & stockholders' equity | $ | 35,207,960 | $ | 35,165,684 | $ | 32,685,430 | $ | 34,821,420 | $ | 32,163,823 | |||||
| For informational purposes only - included above | |||||||||||||||
| SBA Paycheck Protection Program (PPP) loans | $ | 1,172,276 | $ | 2,043,032 | $ | 2,308,021 | $ | 1,798,465 | $ | 1,348,786 |
(h) Average securities does not include unrealized holding gains/losses on available for sale securities.
HANCOCK WHITNEY CORPORATION
AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY
(Unaudited)
| Three Months Ended | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 9/30/2021 | 6/30/2021 | 9/30/2020 | |||||||||||||||||||
| (dollars in millions) | Average<br><br><br>Balance | Interest | Rate | Average<br><br><br>Balance | Interest | Rate | Average<br><br><br>Balance | Interest | Rate | ||||||||||||
| AVERAGE EARNING ASSETS | |||||||||||||||||||||
| Commercial & real estate loans (TE) (i) | $ | 16,918.4 | $ | 150.3 | 3.52 | % | $ | 17,233.1 | $ | 149.3 | 3.47 | % | $ | 17,607.2 | $ | 155.6 | 3.52 | % | |||
| Residential mortgage loans | 2,376.5 | 21.5 | 3.63 | % | 2,443.0 | 23.9 | 3.92 | % | 2,807.5 | 27.5 | 3.92 | % | |||||||||
| Consumer loans | 1,646.3 | 20.4 | 4.90 | % | 1,712.7 | 21.0 | 4.92 | % | 1,993.1 | 24.0 | 4.79 | % | |||||||||
| Loan fees & late charges | — | 13.5 | 0.00 | % | — | 16.5 | 0.00 | % | — | 15.2 | 0.00 | % | |||||||||
| Total loans (TE) (j) (k) | 20,941.2 | 205.7 | 3.90 | % | 21,388.8 | 210.7 | 3.95 | % | 22,407.8 | 222.3 | 3.95 | % | |||||||||
| Loans held for sale | 82.6 | 0.6 | 3.06 | % | 89.6 | 0.6 | 2.90 | % | 112.2 | 0.8 | 2.96 | % | |||||||||
| US Treasury and government agency securities | 395.6 | 1.6 | 1.59 | % | 291.0 | 1.2 | 1.67 | % | 165.6 | 0.8 | 1.99 | % | |||||||||
| CMOs and mortgage backed securities | 7,033.7 | 31.4 | 1.79 | % | 6,961.4 | 31.0 | 1.78 | % | 5,326.2 | 29.4 | 2.21 | % | |||||||||
| Municipals (TE) | 925.0 | 6.8 | 2.93 | % | 930.1 | 6.8 | 2.94 | % | 889.5 | 6.7 | 3.01 | % | |||||||||
| Other securities | 14.5 | 0.1 | 3.56 | % | 12.3 | 0.1 | 3.64 | % | 8.0 | 0.1 | 4.33 | % | |||||||||
| Total securities (TE) (l) | 8,368.8 | 39.9 | 1.91 | % | 8,194.8 | 39.1 | 1.91 | % | 6,389.3 | 37.0 | 2.31 | % | |||||||||
| Total short-term investments | 2,704.8 | 1.0 | 0.15 | % | 2,522.3 | 0.7 | 0.11 | % | 503.0 | 0.1 | 0.10 | % | |||||||||
| Average earning assets yield (TE) | $ | 32,097.4 | $ | 247.2 | 3.06 | % | $ | 32,195.5 | $ | 251.1 | 3.13 | % | $ | 29,412.3 | $ | 260.2 | 3.53 | % | |||
| INTEREST-BEARING LIABILITIES | |||||||||||||||||||||
| Interest-bearing transaction and savings deposits | $ | 11,341.0 | $ | 1.7 | 0.06 | % | $ | 11,315.8 | $ | 2.7 | 0.10 | % | $ | 9,806.8 | $ | 4.2 | 0.17 | % | |||
| Time deposits | 1,274.9 | 1.0 | 0.32 | % | 1,466.5 | 1.7 | 0.47 | % | 2,174.6 | 6.0 | 1.09 | % | |||||||||
| Public funds | 3,085.4 | 2.3 | 0.30 | % | 3,208.7 | 2.6 | 0.33 | % | 3,196.8 | 4.6 | 0.57 | % | |||||||||
| Total interest-bearing deposits | 15,701.3 | 5.0 | 0.13 | % | 15,991.0 | 7.0 | 0.18 | % | 15,178.2 | 14.8 | 0.39 | % | |||||||||
| Short-term borrowings | 1,612.3 | 1.5 | 0.36 | % | 1,661.0 | 1.6 | 0.37 | % | 1,733.3 | 1.6 | 0.39 | % | |||||||||
| Long-term debt | 248.0 | 3.2 | 5.08 | % | 371.9 | 5.0 | 5.42 | % | 386.0 | 5.4 | 5.60 | % | |||||||||
| Total borrowings | 1,860.3 | 4.7 | 0.99 | % | 2,032.9 | 6.6 | 1.30 | % | 2,119.3 | 7.0 | 1.33 | % | |||||||||
| Total interest-bearing liabilities cost | 17,561.6 | 9.7 | 0.22 | % | 18,023.9 | 13.6 | 0.30 | % | 17,297.5 | 21.8 | 0.50 | % | |||||||||
| Net interest-free funding sources | 14,535.8 | 14,171.6 | 12,114.8 | ||||||||||||||||||
| Total cost of funds | 32,097.4 | 9.7 | 0.12 | % | 32,195.5 | 13.6 | 0.17 | % | 29,412.3 | 21.8 | 0.30 | % | |||||||||
| Net Interest Spread (TE) | $ | 237.5 | 2.84 | % | $ | 237.5 | 2.82 | % | $ | 238.4 | 3.02 | % | |||||||||
| Net Interest Margin (TE) | $ | 32,097.4 | $ | 237.5 | 2.94 | % | $ | 32,195.5 | $ | 237.5 | 2.96 | % | $ | 29,412.3 | $ | 238.4 | 3.23 | % |
(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 $1.6 million, $1.6 million and $3.2 million for the three months ended September 30, 2021, June 30, 2021and September 30, 2020, respectively.
(l) Average securities does not include unrealized holding gains/losses on available for sale securities.
| HANCOCK WHITNEY CORPORATION | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Nine Months Ended | ||||||||||||||
| 9/30/2021 | 9/30/2020 | |||||||||||||
| (dollars in millions) | Average<br><br><br>Balance | Interest | Rate | Average<br><br><br>Balance | Interest | Rate | ||||||||
| AVERAGE EARNING ASSETS | ||||||||||||||
| Commercial & real estate loans (TE) (i) | $ | 17,160.4 | $ | 455.4 | 3.55 | % | $ | 17,217.5 | $ | 503.5 | 3.91 | % | ||
| Residential mortgage loans | 2,472.5 | 70.1 | 3.78 | % | 2,899.6 | 85.4 | 3.93 | % | ||||||
| Consumer loans | 1,722.6 | 62.7 | 4.87 | % | 2,083.3 | 78.7 | 5.05 | % | ||||||
| Loan fees & late charges | — | 43.4 | 0.00 | % | — | 26.4 | 0.00 | % | ||||||
| Total loans (TE) (j) (k) | 21,355.5 | 631.6 | 3.95 | % | 22,200.4 | 694.0 | 4.17 | % | ||||||
| Loans held for sale | 94.6 | 2.0 | 2.76 | % | 80.9 | 2.1 | 3.47 | % | ||||||
| US Treasury and government agency securities | 301.0 | 3.7 | 1.66 | % | 139.2 | 2.3 | 2.20 | % | ||||||
| CMOs and mortgage backed securities | 6,770.4 | 91.8 | 1.81 | % | 5,198.4 | 91.1 | 2.34 | % | ||||||
| Municipals (TE) | 929.8 | 20.4 | 2.93 | % | 877.7 | 20.0 | 3.05 | % | ||||||
| Other securities | 12.8 | 0.4 | 3.73 | % | 8.0 | 0.3 | 4.31 | % | ||||||
| Total securities (TE) (l) | 8,014.0 | 116.3 | 1.94 | % | 6,223.3 | 113.7 | 2.44 | % | ||||||
| Total short-term investments | 2,309.4 | 2.1 | 0.12 | % | 515.7 | 0.8 | 0.21 | % | ||||||
| Average earning assets yield (TE) | $ | 31,773.5 | $ | 752.0 | 3.16 | % | $ | 29,020.3 | $ | 810.6 | 3.73 | % | ||
| INTEREST-BEARING LIABILITIES | ||||||||||||||
| Interest-bearing transaction and savings deposits | $ | 11,152.9 | $ | 7.8 | 0.09 | % | $ | 9,332.6 | $ | 21.4 | 0.31 | % | ||
| Time deposits | 1,497.8 | 5.7 | 0.51 | % | 2,895.0 | 33.3 | 1.54 | % | ||||||
| Public funds | 3,168.0 | 7.8 | 0.33 | % | 3,256.2 | 21.6 | 0.89 | % | ||||||
| Total interest-bearing deposits | 15,818.7 | 21.3 | 0.18 | % | 15,483.8 | 76.3 | 0.66 | % | ||||||
| Short-term borrowings | 1,653.6 | 4.6 | 0.37 | % | 2,044.9 | 8.4 | 0.55 | % | ||||||
| Long-term debt | 338.4 | 13.6 | 5.37 | % | 298.5 | 11.8 | 5.25 | % | ||||||
| Total borrowings | 1,992.0 | 18.2 | 1.22 | % | 2,343.4 | 20.2 | 1.15 | % | ||||||
| Total interest-bearing liabilities cost | 17,810.7 | 39.5 | 0.30 | % | 17,827.2 | 96.5 | 0.72 | % | ||||||
| Net interest-free funding sources | 13,962.8 | 11,193.1 | ||||||||||||
| Total cost of funds | 31,773.5 | 39.5 | 0.17 | % | 29,020.3 | 96.5 | 0.44 | % | ||||||
| Net Interest Spread (TE) | $ | 712.5 | 2.87 | % | $ | 714.1 | 3.01 | % | ||||||
| Net Interest Margin (TE) | $ | 31,773.5 | $ | 712.5 | 3.00 | % | $ | 29,020.3 | $ | 714.1 | 3.29 | % |
(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 $6.7 million and $13.1 million for the nine months ended September 30, 2021 and 2020, respectively.
(l) Average securities does not include unrealized holding gains/losses on available for sale securities.
HANCOCK WHITNEY CORPORATION
ASSET QUALITY INFORMATION
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | 9/30/2021 | 6/30/2021 | 9/30/2020 | 9/30/2021 | 9/30/2020 | ||||||||||
| Nonaccrual loans (m) | $ | 60,357 | $ | 83,551 | $ | 171,462 | $ | 60,357 | $ | 171,462 | |||||
| Restructured loans - still accruing | 3,071 | 3,830 | 9,115 | 3,071 | 9,115 | ||||||||||
| Total nonperforming loans | 63,428 | 87,381 | 180,577 | 63,428 | 180,577 | ||||||||||
| ORE and foreclosed assets | 8,423 | 10,201 | 11,640 | 8,423 | 11,640 | ||||||||||
| Total nonperforming assets | $ | 71,851 | $ | 97,582 | $ | 192,217 | $ | 71,851 | $ | 192,217 | |||||
| Nonperforming assets as a percentage of loans, ORE and foreclosed assets | 0.34 | % | 0.46 | % | 0.86 | % | 0.34 | % | 0.86 | % | |||||
| Accruing loans 90 days past due | $ | 9,970 | $ | 8,925 | $ | 10,439 | $ | 9,970 | $ | 10,439 | |||||
| Accruing loans 90 days past due as a percentage of loans | 0.05 | % | 0.04 | % | 0.05 | % | 0.05 | % | 0.05 | % | |||||
| Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets | 0.39 | % | 0.50 | % | 0.91 | % | 0.39 | % | 0.91 | % | |||||
| PROVISION AND ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||
| Allowance for Loan Losses: | |||||||||||||||
| Beginning balance | $ | 399,668 | $ | 424,360 | $ | 442,638 | $ | 450,177 | $ | 191,251 | |||||
| Cumulative effect of change in accounting principle (n) | — | — | — | — | 49,411 | ||||||||||
| Provision for loan losses | (26,377 | ) | (14,194 | ) | 30,044 | (48,134 | ) | 578,468 | |||||||
| Charge-offs | (6,755 | ) | (15,822 | ) | (28,324 | ) | (44,681 | ) | (381,979 | ) | |||||
| Recoveries | 4,985 | 5,324 | 4,316 | 14,159 | 11,523 | ||||||||||
| Net charge-offs | (1,770 | ) | (10,498 | ) | (24,008 | ) | (30,522 | ) | (370,456 | ) | |||||
| Ending Balance | $ | 371,521 | $ | 399,668 | $ | 448,674 | $ | 371,521 | $ | 448,674 | |||||
| Reserve for Unfunded Lending Commitments: | |||||||||||||||
| Beginning balance | $ | 29,524 | $ | 32,559 | $ | 36,571 | $ | 29,907 | $ | 3,974 | |||||
| Cumulative effect of change in accounting principle (n) | — | — | — | — | 27,330 | ||||||||||
| Provision for losses on unfunded lending commitments | (578 | ) | (3,035 | ) | (5,045 | ) | (961 | ) | 222 | ||||||
| Ending Balance | $ | 28,946 | $ | 29,524 | $ | 31,526 | $ | 28,946 | $ | 31,526 | |||||
| Total Allowance for Credit Losses | $ | 400,467 | $ | 429,192 | $ | 480,200 | $ | 400,467 | $ | 480,200 | |||||
| Total Provision for Credit Losses | $ | (26,955 | ) | $ | (17,229 | ) | $ | 24,999 | $ | (49,095 | ) | $ | 578,690 | ||
| Allowance for loan losses as a percentage of period-end loans | 1.78 | % | 1.89 | % | 2.02 | % | 1.78 | % | 2.02 | % | |||||
| Allowance for credit losses as a percentage of period-end loans | 1.92 | % | 2.03 | % | 2.16 | % | 1.92 | % | 2.16 | % | |||||
| Allowance for loan losses to nonperforming loans + accruing loans 90 days past due | 506.17 | % | 415.00 | % | 234.89 | % | 506.17 | % | 234.89 | % | |||||
| NET CHARGE-OFF INFORMATION | |||||||||||||||
| Net charge-offs (recoveries) | |||||||||||||||
| Commercial & real estate loans | $ | 536 | $ | 9,257 | $ | 23,210 | $ | 25,999 | $ | 362,084 | |||||
| Residential mortgage loans | (485 | ) | (133 | ) | (288 | ) | (715 | ) | (908 | ) | |||||
| Consumer loans | 1,719 | 1,374 | 1,086 | 5,238 | 9,280 | ||||||||||
| Total net charge-offs | $ | 1,770 | $ | 10,498 | $ | 24,008 | $ | 30,522 | $ | 370,456 | |||||
| Net charge-offs (recoveries) as a percentage of average loans | |||||||||||||||
| Commercial & real estate loans | 0.01 | % | 0.22 | % | 0.52 | % | 0.20 | % | 2.81 | % | |||||
| Residential mortgage loans | (0.08 | )% | (0.02 | )% | (0.04 | )% | (0.04 | )% | (0.04 | )% | |||||
| Consumer loans | 0.41 | % | 0.32 | % | 0.22 | % | 0.41 | % | 0.60 | % | |||||
| Total net charge-offs as a percentage of average loans | 0.03 | % | 0.20 | % | 0.43 | % | 0.19 | % | 2.23 | % | |||||
| For informational purposes - included above | |||||||||||||||
| Provision for credit loss associated with energy loan sale | $ | — | $ | — | $ | — | $ | — | $ | 160,101 | |||||
| Charge-offs associated with energy loan sale | — | — | — | — | 242,628 |
(m) Included in nonaccrual loans are nonaccruing restructured loans totaling $7.2 million, $6.8 million and $39.9 million at September 30, 2021, June 30, 2021 and September 30, 2020, respectively.
(n) Represents the increase in the allowance upon the January 1, 2020 adoption of ASC 326, commonly referred to as Current Expected Credit Losses, or CECL.
HANCOCK WHITNEY CORPORATION
ASSET QUALITY INFORMATION
(Unaudited)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | ||||||||||
| Nonaccrual loans (m) | $ | 60,357 | $ | 83,551 | $ | 108,434 | $ | 139,879 | $ | 171,462 | |||||
| Restructured loans - still accruing | 3,071 | 3,830 | 6,320 | 4,262 | 9,115 | ||||||||||
| Total nonperforming loans | 63,428 | 87,381 | 114,754 | 144,141 | 180,577 | ||||||||||
| ORE and foreclosed assets | 8,423 | 10,201 | 9,467 | 11,648 | 11,640 | ||||||||||
| Total nonperforming assets | $ | 71,851 | $ | 97,582 | $ | 124,221 | $ | 155,789 | $ | 192,217 | |||||
| Nonperforming assets as a percentage of loans, ORE and foreclosed assets | 0.34 | % | 0.46 | % | 0.57 | % | 0.71 | % | 0.86 | % | |||||
| Accruing loans 90 days past due (o) | $ | 9,970 | $ | 8,925 | $ | 5,090 | $ | 3,361 | $ | 10,439 | |||||
| Accruing loans 90 days past due as a percentage of loans | 0.05 | % | 0.04 | % | 0.02 | % | 0.02 | % | 0.05 | % | |||||
| Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets | 0.39 | % | 0.50 | % | 0.60 | % | 0.73 | % | 0.91 | % | |||||
| PROVISION AND ALLOWANCE FOR CREDIT LOSSES: | |||||||||||||||
| Allowance for loan losses | $ | 371,521 | $ | 399,668 | $ | 424,360 | $ | 450,177 | $ | 448,674 | |||||
| Reserve for unfunded lending commitments | 28,946 | 29,524 | 32,559 | 29,907 | 31,526 | ||||||||||
| Total allowance for credit losses | $ | 400,467 | $ | 429,192 | $ | 456,919 | $ | 480,084 | $ | 480,200 | |||||
| Total provision for credit losses | $ | (26,955 | ) | $ | (17,229 | ) | $ | (4,911 | ) | $ | 24,214 | $ | 24,999 | ||
| Allowance for loan losses as a percentage of period-end loans | 1.78 | % | 1.89 | % | 1.96 | % | 2.07 | % | 2.02 | % | |||||
| Allowance for credit losses as a percentage of period-end loans | 1.92 | % | 2.03 | % | 2.11 | % | 2.20 | % | 2.16 | % | |||||
| Allowance for loan losses to nonperforming loans + accruing loans 90 days past due | 506.17 | % | 415.00 | % | 354.09 | % | 305.20 | % | 234.89 | % | |||||
| NET CHARGE-OFF INFORMATION | |||||||||||||||
| Net charge-offs (recoveries) | |||||||||||||||
| Commercial & real estate loans | $ | 536 | $ | 9,257 | $ | 16,206 | $ | 22,141 | $ | 23,210 | |||||
| Residential mortgage loans | (485 | ) | (133 | ) | (97 | ) | (166 | ) | (288 | ) | |||||
| Consumer loans | 1,719 | 1,374 | 2,145 | 2,355 | 1,086 | ||||||||||
| Total net charge-offs | $ | 1,770 | $ | 10,498 | $ | 18,254 | $ | 24,330 | $ | 24,008 | |||||
| Net charge-offs (recoveries) as a percentage of average loans | |||||||||||||||
| Commercial & real estate loans | 0.01 | % | 0.22 | % | 0.38 | % | 0.51 | % | 0.52 | % | |||||
| Residential mortgage loans | (0.08 | )% | (0.02 | )% | (0.02 | )% | (0.02 | )% | (0.04 | )% | |||||
| Consumer loans | 0.41 | % | 0.32 | % | 0.48 | % | 0.49 | % | 0.22 | % | |||||
| Total net charge-offs as a percentage of average loans | 0.03 | % | 0.20 | % | 0.34 | % | 0.44 | % | 0.43 | % | |||||
| AVERAGE LOANS | |||||||||||||||
| Commercial & real estate loans | $ | 16,918,343 | $ | 17,233,112 | $ | 17,334,265 | $ | 17,429,975 | $ | 17,607,186 | |||||
| Residential mortgage loans | 2,376,500 | 2,442,956 | 2,600,492 | 2,732,483 | 2,807,568 | ||||||||||
| Consumer loans | 1,646,330 | 1,712,746 | 1,810,541 | 1,903,214 | 1,993,071 | ||||||||||
| Total average loans | $ | 20,941,173 | $ | 21,388,814 | $ | 21,745,298 | $ | 22,065,672 | $ | 22,407,825 |
(m) Included in nonaccrual loans are nonaccruing restructured loans totaling $7.2 million, $6.8 million, $7.2 million, $21.6 million and $39.9 million at September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively.
(o) Excludes 90+ accruing loan troubled debt restructured loans already reflected in total nonperforming loans of $1.8 million at March 31, 2021.
HANCOCK WHITNEY CORPORATION
Appendix A to the Earnings Release
Reconciliation of Non-GAAP Measures
TOTAL REVENUE (TE) AND PRE-PROVISION NET REVENUE (TE)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | 9/30/2021 | 6/30/2021 | 3/31/2021 | 12/31/2020 | 9/30/2020 | 9/30/2021 | 9/30/2020 | ||||||||||||||
| Net interest income | $ | 234,709 | $ | 234,643 | $ | 234,587 | $ | 238,286 | $ | 235,183 | $ | 703,939 | $ | 704,237 | |||||||
| Noninterest income | 93,361 | 94,272 | 87,089 | 82,350 | 83,748 | 274,722 | 242,078 | ||||||||||||||
| Total revenue | 328,070 | 328,915 | 321,676 | 320,636 | 318,931 | 978,661 | 946,315 | ||||||||||||||
| Taxable equivalent adjustment (p) | 2,768 | 2,854 | 2,922 | 3,115 | 3,189 | 8,544 | 9,885 | ||||||||||||||
| Nonoperating revenue | (4,576 | ) | (2,800 | ) | — | — | — | (7,376 | ) | — | |||||||||||
| Operating revenue (TE) | 326,262 | 328,969 | 324,598 | 323,751 | 322,120 | 979,829 | 956,200 | ||||||||||||||
| Noninterest expense | (194,703 | ) | (236,770 | ) | (193,072 | ) | (193,144 | ) | (195,774 | ) | (624,545 | ) | (595,648 | ) | |||||||
| Nonoperating expense | 3,225 | 44,977 | — | — | — | 48,202 | — | ||||||||||||||
| Operating pre-provision net revenue (TE) | $ | 134,784 | $ | 137,176 | $ | 131,526 | $ | 130,607 | $ | 126,346 | $ | 403,486 | $ | 360,552 |
(p) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.
17
hwc-ex992_7.pptx.htm
Third Quarter 2021 Earnings Conference Call 10/19/2021 HANCOCK WHITNEY Exhibit 99.2
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 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 adequacy of our enterprise risk management framework, 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 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 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. 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. Given the many unknowns and risks being heavily weighted to the downside, our forward-looking statements are subject to the risk that conditions will be substantially different than we are currently expecting. If efforts to contain and inoculate our population against COVID-19 and other variants thereof, are unsuccessful and restrictions on movement are re-imposed, the economic impact could continue to be substantial. The COVID-19 outbreak and its consequences, including responsive measures to manage it, have had and are likely to continue to have an adverse effect, possibly materially, on our business and financial performance by adversely affecting, possibly materially, the demand and profitability of our products and services, the valuation of assets and our ability to meet the needs of our customers. 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, 2020 and in other periodic reports that we file with the SEC. Important cautionary statement about forward-looking statements HANCOCK WHITNEY 2
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-basis financial statements, and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. Reconciliations of those non-GAAP measures to the comparable GAAP measure are included in the appendix to this presentation. The earnings release, financial tables and supporting slide presentation can be found on the company’s Investor Relations website at investors.hancockwhitney.com. 1Q21 – First Quarter of 2021 2H20 – Second Half of 2020 2H21 – Second Half of 2021 2Q20 – Second Quarter of 2020 2Q21 – Second Quarter of 2021 3Q20 – Third Quarter of 2020 3Q21 – Third Quarter of 2021 4Q20 – Fourth Quarter of 2020 4Q21 – Fourth Quarter of 2021 4Q22 – Fourth Quarter of 2022 AFS – Available for sale securities ACL – Allowance for credit losses Annualized – Calculated to reflect a rate based on a full year B – Dollars in billions bps – basis points CARES Act – Coronavirus Aid Relief, and Economic Security Act CCB – Capital Conservation Buffer C&D – Construction and land development loans C&I – Commercial and industrial loans CDI – Core Deposit Intangible CECL – Current Expected Credit Losses (accounting standard effective 1/1/2020) CET1 – Common Equity Tier 1 Ratio Core Loans - Loans excluding PPP activity COVID-19 – Pandemic related virus CRE – Commercial real estate DDA – Noninterest-bearing demand deposit accounts DP – Data processing (e) – estimated *Efficiency ratio – noninterest expense to total net interest (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items EOP – End of period EPS – Earnings per share Excess liquidity - deposits held at the Fed plus investment in the bond portfolio above normal levels Fed - Federal Reserve Bank FTE – Full time equivalent FV – Fair Value HFS – Held for sale HTM – Held to maturity securities ICRE – Income-producing commercial real estate IRR – Interest rate risk LIBOR – London Inter-Bank Offered Rate Line Utilization - represents the used portion of a revolving line resulting in a funded balance for a given portfolio; credit cards, construction loans (commercial and residential), and consumer lines of credit are excluded from the calculation Linked-quarter (LQ) – current quarter compared to previous quarter LOB – Line of Business LQA – Linked-quarter annualized M&A – Mergers and acquisitions MM – Dollars in millions NII – Net interest income *NIM – Net interest margin (TE) NPA – Nonperforming assets NPL – Nonperforming loans OCI – Other comprehensive income OFA – Other foreclosed assets *Operating – Financial measure excluding nonoperating items *Operating Leverage – Operating revenue (TE) less operating expense; also known as PPNR ORE – Other real estate PAA – Purchase accounting accretion from business combinations *PPNR – Pre-provision net revenue (operating): also known as operating leverage PPP – SBA’s Paycheck Protection Program related to COVID-19 PY – Prior year ROA – Return on average assets ROTCE – Return on tangible common equity SBA – Small Business Administration S1 – Stronger Near-term Growth S2 – Slower Near-term Growth Structured solutions – active term modification of original contractual loan agreement TCE – Tangible common equity ratio (common shareholders’ equity less intangible assets divided by total assets less intangible assets) TDR – Troubled Debt Restructuring *TE – Taxable equivalent (calculated using the current statutory federal tax rate) VERP – Voluntary Early Retirement Program Y-o-Y – Year over year HANCOCK WHITNEY 3
Corporate Profile (as of September 30, 2021) $35.3 billion in Total Assets $20.9 billion in Total Loans (includes $935.3 million in PPP loans) $29.2 billion in Total Deposits CET1 ratio 11.19%(e) Tangible Common Equity (TCE) ratio 7.85% $4.1 billion in Market Capitalization 177 banking locations and 240 ATMs across our footprint (as of October 8, 2021) Approximately 3,400 (FTE) employees corporate-wide Moody’s long-term issuer rating: Baa3; outlook stable S&P long-term issuer rating: BBB; outlook stable Named one of America’s Best Midsize Employers by Forbes Rated among the strongest, safest financial institutions in the country by BauerFinancial, Inc. for 128 consecutive quarters Earned top customer service marks with Greenwich Excellence Awards Diversity, equity and inclusion (DEI) are fundamental to the spirit of HWC’s purpose, mission and values HWC Nasdaq Listed HANCOCK WHITNEY
Third Quarter 2021 Highlights Net income totaled $129.6 million, or $1.46 per diluted share, up $40.9 million, or $0.46 per share, linked quarter 3Q21 results include ($1.4) million, or ($0.01) per share, of net nonoperating income items Excluding the impact of nonoperating items, EPS would be $1.45, up $0.08 linked quarter Pre-provision net revenue (PPNR)* totaled $134.8 million, down $2.4 million, linked-quarter Core loan growth of $219.7 million, offset the impact of $482.2 million in PPP loan forgiveness leading to an overall decline in total loans of $262.5 million in the quarter Deposits decreased $65.0 million linked-quarter; noninterest-bearing demand deposits increased $247.0 million $28.8 million reserve release and $1.8 million in net charge-offs led to a negative provision for credit losses of $27.0 million ACL coverage remained strong at 1.92%; 2.00% excl PPP loans Both nonperforming loans and criticized commercial loans declined 27% and 11%, respectively linked-quarter The continued impact of excess liquidity, driven mainly by PPP loan forgiveness, led to a 2 bps compression in reported NIM TCE ratio 7.85%, up 15 bps ($s in millions; except per share data) 3Q21 2Q21 3Q20 Net Income $129.6 $88.7 $79.4 Provision for credit losses (27.0) (17.2) 25.0 Net nonoperating (income)/expense items (1.4) 42.2 ─ Earnings Per Share – diluted $1.46 $1.00 $0.90 Return on Assets (%) (ROA) 1.46 1.01 0.97 Return on Tangible Common Equity (%) (ROTCE) 19.22 13.94 13.14 Net Interest Margin (TE) (%) 2.94 2.96 3.23 Net Charge-offs (%) 0.03 0.20 0.43 CET1 Ratio (%) 11.19(e) 10.98 10.30 Tangible Common Equity (%) 7.85 7.70 7.53 Pre-Provision Net Revenue (TE)* 134.8 137.2 126.3 Efficiency Ratio (%) 57.4 57.0 59.3 *Non-GAAP measure: see slide 24 for non-GAAP reconciliation HANCOCK WHITNEY ($s in millions; except per share data) 3Q21 2Q21 3Q20 Net Income $129.6 $88.7 $79.4 Provision for credit losses (27.0) (17.2) 25.0 Net nonoperating (income)/expense items (1.4) 42.2 ─ Earnings Per Share – diluted $1.46 $1.00 $0.90 Return on Assets (%) (ROA) 1.46 1.01 0.97 Return on Tangible Common Equity (%) (ROTCE) 19.22 13.94 13.14 Net Interest Margin (TE) (%) 2.94 2.96 3.23 Net Charge-offs (%) 0.03 0.20 0.43 CET1 Ratio (%) 11.19(e) 10.98 10.30 Tangible Common Equity (%) 7.85 7.70 7.53 Pre-Provision Net Revenue (TE)* 134.8 137.2 126.3 Efficiency Ratio (%) 57.4 57.0 59.3
Loans totaled $20.9 billion, down $262.5 million, net, linked-quarter $482.2 million in PPP loan forgiveness $219.7 million in core loan growth, or 4% LQA Quarterly core loan growth (excl PPP) impacted by: Fewer payoffs and paydowns in 3Q21 Slight uptick in line utilization rates Increased loan pipeline pull-through rate Tailwinds and headwinds to future core loan growth: Tailwinds: Improvement in economic activity across our footprint Deployment of excess liquidity Improvement of utilization rates Headwinds: Amortizing only indirect and energy loan portfolios Continued elevated levels of residential mortgage payoffs Payoffs and paydowns expected in 4Q21 (including potential impact from CRE) Loan Growth Momentum Continues in Markets & Specialty Lines HANCOCK WHITNEY $21,149 $20,886 $26 $193 $92 $112 $54 $482 $47 $61 $10 $32 $20,000 $20,500 $21,000 $21,500 $22,000 6/30/21 East Region(MS AL FL &TN) Central Region(SE LA) West Region(TX & SW LA) PPP loans Indirect Equipment Finance Mortgage Energy Healthcare Other/Miscellaneous 9/30/21 $ in millions 48.3% 41.5% 40.4% 40.0% 37.7% 38.3% 38.7% 35.0% 40.0% 45.0% 50.0% 55.0% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Line Utilization HANCOCK WHITNEY
Paycheck Protection Program (PPP) Loans Under the original and extended Paycheck Protection Programs (PPP), the company has originated more than 20,000 loans totaling $3.3 billion During 3Q21, $482 million in PPP loans were forgiven Expect up to $500 million of PPP loans to be forgiven in 4Q21, resulting in a total remaining balance between $400 million and $500 million at December 31, 2021 Unamortized fees totaled $17.6 million as of September 30, 2021 Quarterly Impact $ in millions except per share data EOP PPP Net Income PPNR Fees Amortized NIM EPS 2Q20 $2,287 $12.8 $16.2 $13.0 0.05% $0.15 3Q20 2,324 15.3 19.3 17.0 0.06% 0.17 4Q20 2,005 14.7 18.6 15.7 0.05% 0.17 1Q21 2,346 14.3 18.2 14.2 0.04% 0.16 2Q21 1,418 15.8 20.0 16.9 0.09% 0.18 3Q21 935 11.9 15.3 14.4 0.11% 0.13 West 25% Central 39% East 36% HANCOCK WHITNEY Quarterly Impact $ in millions except per share data EOP PPP Net Income PPNR Fees Amortized NIM EPS 2Q20 $2,287 $12.8 $16.2 $13.0 0.05% $0.15 3Q20 2,324 15.3 19.3 17.0 0.06% 0.17 4Q20 2,005 14.7 18.6 15.7 0.05% 0.17 1Q21 2,346 14.3 18.2 14.2 0.04% 0.16 2Q21 1,418 15.8 20.0 16.9 0.09% 0.18 3Q21 935 11.9 15.3 14.4 0.11% 0.13
NPLs and Criticized Commercial Loans Continue to Decline Criticized commercial loans totaled $294 million, or 1.84% of total commercial loans (excluding PPP loans), at September 30, 2021, down $36 million, or 11%, linked-quarter and down $118 million, or 29%, from a year ago Nonperforming loans totaled $63 million, or 0.32% of total loans (excluding PPP loans), at September 30, 2021, down $24 million, or 27%, linked-quarter and down $118 million, or 65%, from a year ago *Ratios exclude PPP loans Total Loans excl. PPP $19,919 $19,784 $19,319 $19,731 $19,951 Total Commercial Loans excl. PPP 15,216 15,262 15,074 15,639 15,977 Criticized Commercial Loans 412 393 348 330 294 Total Nonperforming Loans 181 144 115 87 63 2.57% 0.73% 2.31% 0.59% 0.44% 1.84% 0.32% $400 $300 $200 $100 $0 3Q20 4Q20 1Q21 2Q21 3Q21 HANCOCK WHITNEY Total Loans excl. PPP Total Commercial Loans excl. PPP Criticized Commercial Loans Total Nonperforming Loans $19,919 $19,784 $19,319 $19,731 $19,951 15,216 15,262 15,074 15,639 15,977 412 393 348 330 294 181 144 115 87 63 2.70% 0.91% 2.57% 0.73% 2.31% 0.59% 2.11% 0.44% 1.84% 0.32% $450 $350 $250 $150 $50
Modest Reserve Release Continues Negative provision for the quarter of ($27.0) million, reflects $1.8 million of net charge-offs and a reserve release of $28.8 million Weighting applied to Moody's September 2021 economic scenarios was 50% Baseline and 50% slower growth (S2), compared to 65% Baseline and 35% slower growth in the prior quarter Economic forecast reflects continued optimism driving slight improvement in credit loss outlook; incorporates the potential of slower economic growth Significant assumptions in economic forecasts include varied levels of vaccination rates, size and timing of government infrastructure spend, and resolution of the coronavirus pandemic ($s in millions) Net Charge-Offs Reserve Release Total Provision Commercial $0.6 ($18.2) ($17.6) Mortgage (0.5) (5.4) (5.9) Consumer 1.7 (5.2) (3.5) Total $1.8 ($28.8) ($27.0) 9/30/2021 6/30/2021 Portfolio ($ in millions) Amount % of Loan and Leases Outstanding Amount % of Loan and Leases Outstanding Commercial (excluding PPP) $307 1.92% $323 2.07% Mortgage 31 1.32% 37 1.51% Consumer 33 2.05% 39 2.29% PPP Loans 1 0.10% 1 0.10% Allowance for Loan and Lease Losses $372 1.78% $400 1.89% Reserve for Unfunded Lending Commitments 29 --- 29 --- Allowance for Credit Losses $401 1.92% $429 2.03% Allowance for Credit Losses – Excluding PPP Loans $400 2.00% $428 2.17% HANCOCK WHITNEY 9/30/2021 6/30/2021 Portfolio ($ in millions) Amount % of Loan and Leases Outstanding Amount % of Loan and Leases Outstanding Commercial (excluding PPP) $307 1.92% $323 2.07% Mortgage 31 1.32% 37 1.51% Consumer 33 2.05% 39 2.29% PPP Loans 1 0.10% 1 0.10% Allowance for Loan and Lease Losses $372 1.78% $400 1.89% Reserve for Unfunded Lending Commitments 29 --- 29 --- Allowance for Credit Losses $401 1.92% $429 2.03% Allowance for Credit Losses – Excluding PPP Loans $400 2.00% $428 2.17% ($s in millions) Net Charge-Offs Reserve Release Total Provision Commercial $0.6 ($18.2) ($17.6) Mortgage (0.5) (5.4) (5.9) Consumer 1.7 (5.2) (3.5) Total $1.8 ($28.8) ($27.0)
Securities Portfolio Positioned Well for Future Rise in Rates Securities portfolio (excluding unrealized gains) totaled $8.3 billion, down $271.7 million, or 3%, linked-quarter 16% HTM, 84% AFS $1.6 billion, or 23% of AFS securities, are FV hedged, and provide OCI protection and flexibility to reposition and/or reprice portfolio in a rising rate environment Yield 1.91% flat linked-quarter Unrealized net gain of $57.4 million on AFS at September 30, 2021 compared to $110.3 million at June 30, 2021 Premium amortization totaled $12.3 million, down $0.9 million linked-quarter Effective duration of 4.41 years compared to 4.58 years at June 30, 2021 HANCOCK WHITNEY CMBS$3,412 41% CMO$203 3% U.S. Agencies and other$409 5% RMBS$3,304 40% Munis$923 11% Securities Portfolio Mix 9/30/21 $s in millions 22% 23% 24% 25% 26% 2% 3% 5% 8% 8% 10% 15% 20% 25% 30% 35% 40% 3Q20 4Q20 1Q21 2Q21 3Q21 Securities and ST Investments/Earning Assets (Average) Securities ST Investments
Core Deposits Remain Elevated and “Sticky” Total deposits of $29.2 billion, down $65.0 million linked-quarter; virtually unchanged Noninterest-bearing demand deposits (DDAs) increased $247.0 million Time deposits (retail) decreased $138.7 million, with a portion moving to transaction accounts in light of the low rate environment Interest-bearing public fund deposits decreased $151.4 million primarily due to the low rate environment DDAs comprised 47% of total period-end deposits September cost of deposits 7 bps, down 1 bp from June 2021 Total Deposits 9/30/21 $s in millions Time Deposits (retail) $1,208 4% Interest-bearing transaction & savings $11,292 39% Interest-earing public funds $3,055 10% Noninterest bearing $13,653 47% $s in billions $30.0 $28.0 $26.0 $24.0 $22.0 $18.0 $16.0 Avg Qtrly Deposits LQA EOP growth 3Q20 4Q20 1Q21 2Q21 3Q21 $26.8 $27.0 $28.1 $29.2 $29.2 -4% 10% 22% 1% -1% HANCOCK WHITNEY Total Deposits 9/30/21 $s in millions Time Deposits (retail) $1,208 4% Interest-bearing transaction & savings $11,292 39% Interest-earing public funds $3,055 10% Noninterest bearing $13,653 47% $s in billions $30.0 $28.0 $26.0 $24.0 $22.0 $18.0 $16.0 Avg Qtrly Deposits LQA EOP growth 3Q20 4Q20 1Q21 2Q21 3Q21 $26.8 $27.0 $28.1 $29.2 $29.2 -4% 10% 22% 1% -1%
Net interest margin (NIM) 2.94%, down 2 bps linked-quarter; net interest income (TE) was flat LQ NIM Headwinds: Ongoing impact of lower rates PPP loan forgiveness Continued elevated excess liquidity NIM Tailwinds: Deployment of excess liquidity into loans Steeper yield curve Modest reinvestment into bond portfolio Deposit costs are expected to remain relatively flat as pricing discipline remains in place NIM Compression; Flat Net Interest Income Cost of Deposits NIM Compression; Flat Net Interest Income Cost of Deposits 0.20% 0.15% 0.10% 0.05% .14% .13% .12% .11% .10% .08% .07% .06% Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Sep 21 Dec 21(e) 3.05% 3.00% 2.95% 2.90% 2.85% 2.80% 2.96% 0.03% 0.06% 0.01% 0.02% 2.94% 2Q21 NIM (TE) Impact of lower deposit costs Change in earning asset mix / yield Net impact of interest recoveries Sub-debt impact (full quater) 3Q21 NIM (TE) 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 3.95% 3.99% 4.01% 3.95% 3.90% 3.23% 3.22% 3.09% 2.69% 2.94% 2.31% 2.23% 2.00% 1.91% 1.91% 0.30% 0.25% 0.21% 0.17% 0.12% 3Q20 4Q20 1Q21 2Q21 3Q21 Loan Yield Securities Yield Cost of Funds NIM HANCOCK WHITNEY
Loans, excluding PPP, totaled $20.0 billion at September 30, 2021 Loan portfolio 57% ($11.3 billion) variable at September 30, 2021 (excludes PPP) 63% ($7.1 billion) of variable loans are LIBOR-based (36% of loan portfolio excluding PPP) 96% of the LIBOR loans are tied to 1 month LIBOR; 2% of the LIBOR loans are tied to 3 month LIBOR; 2% of the LIBOR loans are tied to 1 year LIBOR 34% ($3.9 billion) tied to Wall Street Journal Prime Approximately 39% ($3.9 billion) of variable rate loans are at their floor (excludes mortgage and credit cards) Majority of floors are struck at a Fed Funds level of 1.00%, with $2.2 billion in loans striking floors at this level; once rates increase above 1%, the majority of these floored loans will convert back to floating Hedges deployed to effectively manage interest rate risk (see appendix slide 27) $1 billion of active receive fixed/pay 1m LIBOR swaps designated as Cash Flow Hedges on the balance sheet (receive 158 bps, pay 1 month LIBOR) $500 million in Cash Flow Hedges were terminated in the 3Q21 $1.6 billion of pay fixed/receive Fed Effective swaps designated as Fair Value Hedges (23% of AFS investment securities on the balance sheet) IRR Sensitivity IRR Sensitivity HWC As of Q3 2021 HWC (Hedges Removed) As of Q3 2021 Peers * Immediate 100 bps 6.6% 7.7% 6.7% Gradual 100 bps 3.0% 3.5% 4.3% * Source: S&P Global Market Intelligence company public filings as of 2Q21 HANCOCK WHITNEY HWC HWC (Hedges Removed) As of Q3 2021 As of Q3 2021 Peers * Immediate 100 bps 6.6% 7.7% 6.7% Gradual 100 bps 3.0% 3.5% 4.3% * Source: S&P Global Market Intelligence company public filings as of 2Q21
Impact of Hurricane Ida, Lower Mortgage Refi Drives Decline in Fees Noninterest income totaled $93.4 million, down $0.9 million, or 1% linked-quarter 3Q21 included a $4.6 million gain from the sale of the remaining Hancock Horizon Funds (nonoperating item) Operating income (excluding nonoperating items) totaled $88.8 million, down $2.7 million, or 3% linked-quarter Most fee categories were impacted by the evacuation, branch and ATM closures, and fee waivers related to Hurricane Ida The decrease in secondary mortgage fees was related to the impact of both Hurricane Ida and the 2Q21 impact of diversification in delivery methods $s in millions $100 $95 $90 $85 $80 $75 $70 $91.5 $1.8 $0.6 $0.2 $0.3 $5.6 $2.2 $88.8 $4.6 $93.4 2Q21 Operating Noninterest Income Service charge on deposit accounts Bank card & ATM fees Investment & annuity income and insurance Trust fees Secondary mortgage fees Other, net (operating) 3Q21 Operating Nonintesrest Income Gain on sale of Hancock Horizon funds (nonoperating) 3Q21 Noninterest Income Noninterest Income Mix 9/30/21 Other $17.6 19% Service Charges on Deposit $21.2 23% Nonoperating item $4.6 5% Secondary Mortgage Fees $7.0 7% Investment & Annuity and Insurance $7.2 8% Bank Card & ATM Fees $19.8 21% Trust Fees $16.0 17% HANCOCK WHITNEY
Expense Management and Efficiency Initiatives Ongoing Noninterest expense totaled $194.7 million, down $42.1 million linked-quarter (2Q21 results include $45 million of net nonoperating items) 3Q21 included $3.2 million of net expenses mostly related to Hurricane Ida (nonoperating item) Operating noninterest expense (excluding nonoperating items) totaled $191.5 million, down $0.3 million, or less than 1% linked-quarter Decrease in personnel expense (operating) was related to savings associated with recent efficiency initiatives Nonoperating items include $5.1 million related to Hurricane Ida, partly offset by a reversal of $1.9 million in severance as employees with positions eliminated last quarter were able to fill open jobs $s in millions $200 $175 $150 $125 $100 $191.8 $3.5 $0.2 $0.2 $1.4 $2.5 $191.5 $3.2 $194.7 2Q21 Operating Noninterest Expense Personnel Expense (operating) Occupancy and Equipment Amortization of intangibles Advertising Other (net)(operating) 3Q21 Operating Noninterest Expense Non operating items 3Q21 Noninterest Expense Noninterest Expense Mix 9/30/21 $s in millions Other $56.7 29% Amortization of intangibles $4.1 2% Nonoperating items $3.2 2% Occupancy & Equipment $16.9 9% Personnel $113.8 58% HANCOCK WHITNEY
Solid Capital, TCE Up 15 bps Linked-Quarter TCE ratio 7.85%, up 15 bps LQ Tangible net earnings +39 bps Stock Compensation and other +1 bp Change in OCI -13 bps Dividends -7 bps Change in tangible assets -5 bps Repurchased 56,349 shares of common stock during 3Q21 at an average price of $44.49 per share CET1 ratio estimated at 11.19%, up 21 bps linked-quarter Will continue to manage capital in the best interests of the Company and our shareholders; our priorities are: Organic growth Dividends Buybacks M&A Tangible Common Equity Ratio Leverage (Tier 1) Ratio CET1 Ratio and Tier 1 Risked-Based Capital Ratio Total Risk-Based Capital Ratio September 30, 2021 7.85% 8.15%(e) 11.19%(e) 13.09%(e) June 30, 2021 7.70% 7.83% 10.98% 12.94% March 31, 2021 7.26% 7.89% 11.00% 13.60% December 31, 2020 7.64% 7.88% 10.61% 13.22% September 30, 2020 7.53% 7.70% 10.30% 12.92% (e) Estimated for most recent period-end Capital Ratios 15% 10% 5% 3Q20 4Q20 1Q21 2Q21 3Q21(e) TCE Tire 1 Risk-Based Capital Total Risk-Based Capital Tangible Common Equity Ratio Leverage (Tier 1) Ratio CET1 Ratio and Tier 1 Risked-Based Capital Ratio Total Risk-Based Capital Ratio September 30, 2021 7.85% 8.15%(e) 11.19%(e) 13.09%(e) June 30, 2021 7.70% 7.83% 10.98% 12.94% March 31, 2021 7.26% 7.89% 11.00% 13.60% December 31, 2020 7.64% 7.88% 10.61% 13.22% September 30, 2020 7.53% 7.70% 10.30% 12.92% HANCOCK WHITNEY
Near Term Outlook Q3 2021 Actual Items to note Q4 2021 Outlook FY 2021 Outlook Core Loans (EOP) (excl PPP loans) * $20.0B (excl PPP loans) Core loans up $219.7MM; PPP loans down $482.2MM LQ Expect EOP core loans to be up $400 to $500MM linked-quarter Expect core loans to end the year at approximately $20.4B or +3% year-over-year; some uncertainty as to exact timing of CRE payoffs could impact guidance Deposits (EOP) $29.2B Deposits down $65.0MM linked-quarter Expect total deposits to be up $100 to $200MM Expect deposits to end the year at approximately $29.4B or +6% year-over-year Net Interest Margin (NIM) 2.94% See slide 12 Expect an additional 4 bps of compression in 4Q21 from excess liquidity and PPP loan forgiveness 2021 full year NIM expected to be down approximately 30 bps vs. 2020 full year NIM (3.27%) Net Interest Income (TE) $237.5MM See slide 12 Expect net interest income to be down slightly linked-quarter Expect net interest income (TE) to be down approximately 1% for full year 2021 vs. 2020; impacted by rates, PPP loan forgiveness and limited loan growth in 2H20 and 1H21 (base for 2020 = $955.5MM) Reserve for Credit Losses $400.5MM or 1.92% of total loans $28.8MM reserve release, ($1.8MM in NCOs; $27.0MM negative provision) Expect continued modest reserve releases Future assumptions in economic forecasts will drive level of reserves and include the impact of vaccination rates, size and timing of government infrastructure spend, and resolution of the coronavirus pandemic Noninterest Income $93.4MM reported $88.8MM operating Includes $4.6MM of nonoperating income Expect fees (excluding nonoperating items) to be relatively flat linked-quarter Expect fee growth of approximately 9% year-over-year as improvements in most fee categories are partially offset by lower secondary mortgage fees (base for 2020 = $324.4MM) Noninterest Expense $194.7MM reported $191.5MM operating Includes $3.2MM of nonoperating items Expect operating expenses to total $187MM in 4Q21 in line with previous guidance Expect operating expense to be down approximately 3% in 2021 (base for 2020 = $788.8MM); 4Q21 expense level will be a run-rate for 2022 overall expense Effective Tax Rate 19.2% 19%-20% 19%-20% * See slide 7 for details on PPP loans Q3 2021 Actual Items to note Q4 2021 Outlook FY 2021 Outlook Core Loans (EOP) (excl PPP loans) * $20.0B (excl PPP loans) Core loans up $219.7MM; PPP loans down $482.2MM, net LQ Expect EOP core loans to be up $400 to $500MM linked-quarter Expect core loans to end the year at approximately $20.4B or +3% year-over-year; some uncertainty as to exact timing of CRE payoffs could impact guidance Deposits (EOP) $29.2B Deposits down $65.0MM linked-quarter Expect total deposits to be up $100 to $200MM Expect deposits to end the year at approximately $29.4B or +6% year-over-year Net Interest Margin (NIM) 2.94% See slide 12 Expect an additional 4 bps of compression in 4Q21 from excess liquidity and PPP loan forgiveness 2021 full year NIM expected to be down approximately 30 bps vs. 2020 full year NIM (3.27%) Net Interest Income (TE) $237.5MM See Slide 12 Expect net interest income to be down slightly linked-quarter Expect net interest income (TE) to be down approximately 1% for full year 2021 vs. 2020; impacted by rates, PPP loan forgiveness and limited loan growth in 2H20 and 1H21 (base for 2020 = $955.5MM) Reserve for Credit Losses $400.5MM or 1.92% of total loans $28.8MM reserve release, ($1.8MM in NCOs; $27.0MM negative provision) Expect continued modest reserve releases Future assumptions in economic forecasts will drive level of reserves and include the impact of vaccination rates, size and timing of government infrastructure spend, and resolution of the coronavirus pandemic Noninterest Income $93.4MM reported $88.8MM operating Includes $4.6MM of nonoperating income Expect fees (excluding nonoperating items) relatively flat linked-quarter Expect fee growth of approximately 9% year-over-year as improvements in most fee categories are partially offset by lower secondary mortgage fees (base for 2020 = $324.4MM) Noninterest Expense $194.7MM reported $191.5MM operating Includes $3.2MM of nonoperating items Expect operating expenses to total $187MM in 4Q21 in line with previous guidance Expect operating expense to be down approximately 3% in 2021 (base for 2020 = $788.8MM); 4Q21 expense level will be a run-rate for 2022 overall expense Effective Tax Rate 19.2% 19%-20% 19%-20% HANCOCK WHITNEY
Efficiency ratio target of 55% set for 4Q22 Thoughtful execution of revenue and efficiency strategies will continue into 2022: Continued momentum in core loan growth at a mid-single digit LQA level throughout 2022 Maintain our 4Q21 targeted expense level of $187mm and run rate (LQA) in 2022, or $750 million for 2022 Additional efficiency initiatives (e.g. strategic procurement) will support the strategy of cost reductions to offset items like assumed wage inflation and the program of new banker hires Deployment of excess liquidity into loans and then modest reinvestment in the bond portfolio Expense Catalyst: successful execution of efficiency efforts Path to 55% Efficiency Ratio Revenue Catalyst: new banker hires 15 new bankers have been added in growth or new markets across the footprint including middle market, commercial and healthcare, with more planned for 2022 ER Progress to-date 1Q20A 4Q21F Change Branches 215 177 -38 FTE 4,148 3,500 -648 Operating Expense $203.3 million $187.0 million ($16.3) million or -8% Efficiency Ratio 62.1% 57.4% -470 bps Dallas, TX +6 San Antonio, TX +2 Houston, TX +1 Beaumont, TX +1 Nashville, TN +2 Tampa, FL +3 Expense Catalyst: successful execution of efficiency efforts 1Q20A 4Q21F Change Branches 215 177 -38 FTE 4,148 3,500 -648 Operating Expense $203.3 million $187.0 million ($16.3) million or -8% Efficiency Ratio 62.1% 57.4% -470 bps ER Progress to-date Operating Revenue, Operating Expense & Efficiency Ratio 63% 62% 61% 60% 59% 58% 57% 56% 55% 54% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Operating Revenue 319.0 315.1 322.1 323.8 324.6 329.0 326.3 Operating Expense 203.3 196.5 195.8 193.1 193.1 191.8 191.5 Efficiency Ratio 62.1% 60.7% 59.3% 58.2% 58.1% 57.0% 57.4% HANCOCK WHITNEY
Appendix and Non-GAAP Reconciliations HANCOCK WHITNEY
Summary Income Statement ($ in millions, except for share data) *Non-GAAP measure: see slide 24 for non-GAAP reconciliation Change Change 3Q21 2Q21 3Q20 LQ Prior Year YTD 2021 YTD 2020 Y-o-Y 237.5 237.5 238.4 -— (0.9) Net Interest Income (TE)* 712.5 714.1 (1.6) (27.0) (17.2) 25.0 (9.8) (52.0) Provision for Credit Losses (49.1) 578.7 (627.8) 93.4 94.3 83.7 (0.9) 9.7 Noninterest Income 274.7 242.1 32.6 194.7 236.8 195.8 (42.1) (1.1) Noninterest Expense 624.5 595.6 28.9 160.3 109.4 98.2 50.9 62.1 Income (loss) before Income Tax 403.2 (228.0) 631.2 30.7 20.7 18.8 10.0 11.9 Income Tax Expense (Benefit) 77.7 (79.3) 157.0 129.6 88.7 79.4 40.9 50.2 Net Income (loss) 325.5 (148.7) 474.2 134.8 137.2 126.3 (2.4) 8.5 PPNR (TE)* 403.5 360.6 42.9 129.6 88.7 79.4 40.9 50.2 Net Income (loss) 325.5 (148.7) 474.2 (2.4) (1.9) (1.4) (0.5) (1.0) Net Income or dividends allocated to participating securities (6.7) (1.3) (5.4) 127.2 86.8 77.9 40.4 49.3 Net Income (loss) available to common shareholders 318.8 (150.0) 468.8 87.0 87.0 86.4 -— 0.6 Weighted average common shares - diluted 87.0 86.6 0.4 1.46 1.00 0.90 0.46 0.56 Reported EPS 3.67 (1.73) 5.40 2.94% 2.96% 3.23% -2 bps -29 bps NIM 3.00% 3.29% -29 bps 1.46% 1.01% 0.97% 45 bps 49 bps ROA 1.25% -0.62% 187 bps 14.26% 10.20% 9.42% 406 bps 484 bps ROE 12.39% -5.77% 1816 bps 57.44% 57.01% 59.29% 43 bps -185 bps Efficiency Ratio* 57.52% 60.69% -317 bps Change Change 3Q21 2Q21 3Q20 LQ Prior Year YTD 2021 YTD 2020 Y-o-Y 237.5 237.5 238.4 — (0.9) Net Interest Income (TE)* 712.5 714.1 (1.6) (27.0) (17.2) 25.0 (9.8) (52.0) Provision for Credit Losses (49.1) 578.7 (627.8) 93.4 94.3 83.7 (0.9) 9.7 Noninterest Income 274.7 242.1 32.6 194.7 236.8 195.8 (42.1) (1.1) Noninterest Expense 624.5 595.6 28.9 160.3 109.4 98.2 50.9 62.1 Income (loss) before Income Tax 403.2 (228.0) 631.2 30.7 20.7 18.8 10.0 11.9 Income Tax Expense (Benefit) 77.7 (79.3) 157.0 129.6 88.7 79.4 40.9 50.2 Net Income (loss) 325.5 (148.7) 474.2 134.8 137.2 126.3 (2.4) 8.5 PPNR (TE)* 403.5 360.6 42.9 129.6 88.7 79.4 40.9 50.2 Net Income (loss) 325.5 (148.7) 474.2 (2.4) (1.9) (1.4) (0.5) (1.0) Net Income or dividends allocated to participating securities (6.7) (1.3) (5.4) 127.2 86.8 77.9 40.4 49.3 Net Income (loss) available to common shareholders 318.8 (150.0) 468.8 87.0 87.0 86.4 -— 0.6 Weighted average common shares - diluted 87.0 86.6 0.4 1.46 1.00 0.90 0.46 0.56 Reported EPS 3.67 (1.73) 5.40 2.94% 2.96% 3.23% -2 bps -29 bps NIM 3.00% 3.29% -29 bps 1.46% 1.01% 0.97% 45 bps 49 bps ROA 1.25% -0.62% 187 bps 14.26% 10.20% 9.42% 406 bps 484 bps ROE 12.39% -5.77% 1816 bps 57.44% 57.01% 59.29% 43 bps -185 bps Efficiency Ratio* 57.52% 60.69% -317 bps CHANCOCK WHITNEY
Summary Balance Sheet ($ in millions) 3Q21 includes $0.9 billion, 2Q21 includes $1.4 billion and 3Q20 includes $2.3 billion in PPP loans, net 3Q21 includes $1.2 billion, 2Q21 includes $2.0 billion and 3Q20 includes $2.3 billion in average PPP loans, net Average securities excludes unrealized gain/(loss) Change Change 3Q21 2Q21 3Q20 LQ Prior Year YTD 2021 YTD 2020 Y-o-Y EOP Balance Sheet 20,886.0 21,148.5 22,240.2 (262.5) (1,354.2) Loans (1) 20,886.0 22,240.2 (1,354.2) 8,308.6 8,633.1 7,056.3 (324.5) 1,252.3 Securities 8,308.6 7,056.3 1,252.3 32,348.0 32,075.5 30,179.1 272.5 2,168.9 Earning Assets 32,348.0 30,179.1 2,168.9 35,318.3 35,098.7 33,193.3 219.6 2,125.0 Total assets 35,318.3 33,193.3 2,125.0 29,208.1 29,273.1 27,030.7 (65.0) 2,177.4 Deposits 29,208.1 27,030.7 2,177.4 1,745.2 1,516.5 1,906.9 228.7 (161.7) Short-term borrowings 1,745.2 1,906.9 (161.7) 31,688.5 31,535.8 29,817.7 152.7 1,870.8 Total Liabilities 31,688.5 29,817.7 1,870.8 3,629.8 3,562.9 3,375.6 66.9 254.2 Stockholders' Equity 3,629.8 3,375.6 254.2 Avg Balance Sheet 20,941.2 21,388.8 22,407.8 (447.6) (1,466.6) Loans (2) 21,355.5 22,200.4 (844.9) 8,368.8 8,194.8 6,389.2 174.0 1,979.6 Securities (3) 8,014.0 6,223.4 1,790.6 32,097.4 32,195.5 29,412.3 (98.1) 2,685.1 Average earning assets 31,773.5 29,020.3 2,753.2 35,208.0 35,165.7 32,685.4 42.3 2,522.6 Total assets 34,821.4 32,163.8 2,657.6 29,237.3 29,228.8 26,763.8 8.5 2,473.5 Deposits 28,872.3 25,934.3 2,938.0 1,612.3 1,661.0 1,733.3 (48.7) (121.0) Short-term borrowings 1,653.6 2,044.9 (391.3) 31,601.9 31,677.1 29,333.8 (75.2) 2,268.1 Total Liabilities 31,308.8 28,721.8 2,587.0 3,606.1 3,488.6 3,351.6 117.5 254.5 Stockholders' Equity 3,512.7 3,442.0 70.7 3.90% 3.95% 3.95% -5 bps -5 bps Loan Yield 3.95% 4.17% -22 bps 1.91% 1.91%2.31% 0 bps -40 bps Securities Yield 1.94% 2.44% -50 bps 0.13% 0.18% 0.39% -5 bps -26 bps Cost of IB Deposits 0.18% 0.66% -48 bps 71.51% 72.25% 82.28% -74 bps -1077 bps Loan/Deposit Ratio71.51% 82.28% -1077 bps HANCOCK WHITNEY Change Change 3Q21 2Q21 3Q20 LQ Prior Year YTD 2021 YTD 2020 Y-o-Y EOP Balance Sheet 20,886.0 21,148.5 22,240.2 (262.5) (1,354.2) Loans (1) 20,886.0 22,240.2 (1,354.2) 8,308.6 8,633.1 7,056.3 (324.5) 1,252.3 Securities 8,308.6 7,056.3 1,252.3 32,348.0 32,075.5 30,179.1 272.5 2,168.9 Earning Assets 32,348.0 30,179.1 2,168.9 35,318.3 35,098.7 33,193.3 219.6 2,125.0 Total assets 35,318.3 33,193.3 2,125.0 29,208.1 29,273.1 27,030.7 (65.0) 2,177.4 Deposits 29,208.1 27,030.7 2,177.4 1,745.2 1,516.5 1,906.9 228.7 (161.7) Short-term borrowings 1,745.2 1,906.9 (161.7) 31,688.5 31,535.8 29,817.7 152.7 1,870.8 Total Liabilities 31,688.5 29,817.7 1,870.8 3,629.8 3,562.9 3,375.6 66.9 254.2 Stockholders' Equity 3,629.8 3,375.6 254.2 Avg Balance Sheet 20,941.2 21,388.8 22,407.8 (447.6) (1,466.6) Loans (2) 21,355.5 22,200.4 (844.9) 8,368.8 8,194.8 6,389.2 174.0 1,979.6 Securities (3) 8,014.0 6,223.4 1,790.6 32,097.4 32,195.5 29,412.3 (98.1) 2,685.1 Average earning assets 31,773.5 29,020.3 2,753.2 35,208.0 35,165.7 32,685.4 42.3 2,522.6 Total assets 34,821.4 32,163.8 2,657.6 29,237.3 29,228.8 26,763.8 8.5 2,473.5 Deposits 28,872.3 25,934.3 2,938.0 1,612.3 1,661.0 1,733.3 (48.7) (121.0) Short-term borrowings 1,653.6 2,044.9 (391.3) 31,601.9 31,677.1 29,333.8 (75.2) 2,268.1 Total Liabilities 31,308.8 28,721.8 2,587.0 3,606.1 3,488.6 3,351.6 117.5 254.5 Stockholders' Equity 3,512.7 3,442.0 70.7 3.90% 3.95% 3.95% -5 bps -5 bps Loan Yield 3.95% 4.17% -22 bps 1.91% 1.91% 2.31% 0 bps -40 bps Securities Yield 1.94% 2.44% -50 bps 0.13% 0.18% 0.39% -5 bps -26 bps Cost of IB Deposits 0.18% 0.66% -48 bps 71.51% 72.25% 82.28% -74 bps -1077 bps Loan/Deposit Ratio 71.51% 82.28% -1077 bps
Results *Non-GAAP measures: see slide 24 for non-GAAP reconciliation 3Q20 4Q20 1Q21 2Q21 3Q21 Operating PPNR (TE)* ($000) 126,346 130,607 131.526 137,176 134,784 Net Interest Income (TE)* ($000) 238,372 241,401 237,509 237,498 237,477 Net Interest Margin (TE)* 3.23% 3.22% 3.09% 2.96% 2.94% Operating Noninterest Income* ($000) 83,748 82,350 87,089 91,472 88,785 Operating Expense* ($000) 195,774 193,144 193,072 191,793 191,477 Efficiency Ratio* 59.29% 58.23% 58.12% 57.01% 57.44% Operating PPNR* ($s in millions) $150 $140 $130 $120 3Q20 4Q20 1Q21 2Q21 3Q21 $126.3 $130.6 $131.5 $137.2 $134.8 Net Interest Income (TE)* ($s in millions) $250 $245 $240 $235 $230 3Q20 4Q20 1Q21 2Q21 3Q21 $238.4 $241.4 $237.5 $237.5 $237.5 Net Interest Margin (TE)* 3.30% 3.15% 3.00% 2.85% 3Q20 4Q20 1Q21 2Q21 3Q21 Operating Noninterest Income*($s in millions) $100 $95 $90 $85 $80 3Q20 4Q20 1Q21 2Q21 3Q21 $83.7 $82.4 $87.1 $91.5 $88.8 Operating Expense* ($s in millions) $200 $195 $190 $185 $180 3Q20 4Q20 1Q21 2Q21 3Q21 $195.8 $193.1 $193.1 $191.8 $191.5 Efficiency Ratio* 60.00% 59.00% 58.00% 57.00% 56.00% 3Q20 4Q20 1Q21 2Q21 3Q21 59.29% 58.23% 58.12% 57.01% 57.44% 3Q20 4Q20 1Q21 2Q21 3Q21 Operating PPNR (TE)* ($000) 126,346 130,607 131.526 137,176 134,784 Net Interest Income (TE)* ($000) 238,372 241,401 237,509 237,498 237,477 Net Interest Margin (TE)* 3.23%3.22% 3.09% 2.96% 2.94% Operating Noninterest Income* ($000) 83,748 82,350 87,089 91,472 88,785 Operating Expense* ($000) 195,774 193,144 193,072 191,793 191,477 Efficiency Ratio* 59.29% 58.23% 58.12% 57.01% 57.44% HANCOCK WHITNEY
Balance Sheet Summary 3Q20 4Q20 1Q21 2Q21 3Q21 Average Loans ($MM) 22,408 22,066 21,745 21,389 20,941 Average Total Securities ($MM) 6,389 6,921 7,469 8,195 8,369 Average Deposits ($MM) 26,764 27,040 28,139 29,229 29,237 Loan Yield (TE) 3.95% 3.99% 4.01% 3.95% 3.90% Cost of Deposits 0.22% 0.18% 0.13% 0.10% 0.07% Tangible Common Equity Ratio 7.53% 7.64% 7.26% 7.70% 7.85% Balance Sheet Summary 4Q19 1Q20 2Q20 3Q20 4Q20 Average Loans ($MM) 21,038 21,234 22,957 22,408 22,066 Average Total Securities ($MM) 6,202 6,149 6,130 6,389 6,921 Average Deposits ($MM) 23,848 24,327 26,703 26,764 27,040 Loan Yield (TE) 4.69% 4.56% 4.04% 3.95% 3.99% Cost of Interest Bearing Deposits 1.11% 1.01% 0.58% 0.39% 0.31% Tangible Common Equity Ratio 8.45% 8.00% 7.33% 7.53% 7.64% CHANCOCK WHITNEY 28 Average Loans ($s in billions) $25 $24 $23 $22 $21 $20 3Q20 4Q20 1Q21 2Q21 3Q21 $22.4 $22.1 $21.7 $21.4 $20.9 Average Securities ($s in billions) $9 $8 $7 $6 $5 3Q20 4Q20 1Q21 2Q21 3Q21 $6.4 $6.9 $7.5 $8.2 $8.4 Average Deposits ($s in billions) $32 $30 $ 28 $26 $26 $24 3Q20 4Q20 1Q21 2Q21 3Q21 $26.8 $27.0 $28.1 $29.2 $29.2 Loan Yield (TE) 4.15% 4.05% 3.95% 3.85% 3Q20 4Q20 1Q21 2Q21 3Q21 3.95% 3.99% 4.01% 3.95% 3.90% Cost of Deposits 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% 3Q20 4Q20 1Q21 2Q21 3Q21 0.22% 0.18% 0.13% 0.10% 0.07% Tangible Common Equity Ratio 8.00% 7.80% 7.60% 7.40% 7.20% 7.00% 3Q20 4Q20 1Q21 2Q21 3Q21 7.53% 7.64% 7.26% 7.70% 7.85% 3Q20 4Q20 1Q21 2Q21 3Q21 Average Loans ($MM) 22,408 22,066 21,745 21,389 20,941 Average Total Securities ($MM) 6,389 6,921 7,469 8,195 8,369 Average Deposits ($MM) 26,764 27,040 28,139 29,229 29,237 Loan Yield (TE) 3.95% 3.99% 4.01% 3.95% 3.90% Cost of Deposits 0.22% 0.18% 0.13% 0.10% 0.07% Tangible Common Equity Ratio 7.53% 7.64% 7.26% 7.70% 7.85% HANCOCK WHITNEY
Operating Revenue (TE), Operating PPNR (TE) Reconciliations Three Months Ended (in thousands) 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Net interest income $234,709 $234,643 $234,587 $238,286 $235,183 Noninterest income 93,361 94,272 87,089 82,350 83,748 Total revenue $328,070 $328,915 $321,676 $320,636 $318,931 Taxable equivalent adjustment 2,768 2,854 2,922 3,115 3,189 Nonoperating revenue (4,576) (2,800) — — — Operating revenue (TE) $326,262 $328,969 $324,598 $323,751 $322,120 Noninterest expense (194,703) (236,770) (193,072) (193,144) (195,774) Nonoperating expense 3,225 44,977 — — — Operating expense (191,478) (191,793) (193,072) (193,144) (195,774) Operating pre-provision net revenue (TE) $134,784 $137,176 $131,526 $130,607 $126,346 Three Months Ended (in thousands) 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Net interest income $234,709 $234,643 $234,587 $238,286 $235,183 Noninterest income 93,361 94,272 87,089 82,350 83,748 Total revenue $328,070 $328,915 $321,676 $320,636 $318,931 Taxable equivalent adjustment 2,768 2,854 2,922 3,115 3,189 Nonoperating revenue (4,576) (2,800) ——— Operating revenue (TE) $326,262 $328,969 $324,598 $323,751 $322,120 Noninterest expense (194,703) (236,770) (193,072) (193,144) (195,774)Nonoperating expense 3,225 44,977———Operating expense (191,478) (191,793) (193,072) (193,144) (195,774) Operating pre-provision net revenue (TE) $134,784 $137,176 $131,526 $130,607 $126,346 (in thousands) 3Q21 2Q21 Nonoperating Income Gain on sale of Hancock Horizon Funds $4,576 — Gain on sale of Mastercard Class B common stock — 2,800 Nonoperating Expense Efficiency initiatives (1,867) 40,812 Hurricane related expenses 5,092 — Redemption of subordinated debentures — 4,165 Total Nonoperating (income)/expense items, net ($1,351) $42,177 HANCOCK WHITNEY Taxable equivalent (TE) amounts are calculated using a federal tax rate of 21% (in thousands) 3Q21 2Q21 Nonoperating Income Gain on sale of Hancock Horizon Funds $4,576 -— Gain on sale of Mastercard Class B common stock -— 2,800 Nonoperating Expense Efficiency initiatives (1,867) 40,812 Hurricane related expenses 5,092 -— Redemption of subordinated debentures -— 4,165 Total Nonoperating (income)/expense items, net ($1,351) $42,177 Nonoperating Items
Commercial Loans (C&I, CRE, C&D)* *Excludes $0.9 billion in PPP loans As of September 30, 2021 Total Commercial Loans Outstanding % of Total Loans Commitment ($s in millions) Real Estate, Rental and Leasing $3,370 16.9% $4,618 Retail Trade 1,814 9.1% 2,236 Health Care and Social Assistance 1,741 8.7% 2,229 Hospitality 1,104 5.5% 1,228 Construction 1,067 5.3% 1,993 Manufacturing 962 4.8% 1,597 Wholesale Trade 818 4.1% 1,362 Finance and Insurance 804 4.0% 1,365 Transportation and Warehousing 804 4.0% 1,047 Public Administration 627 3.1% 649 Professional, Scientific, and Technical Services 534 2.7% 951 Other Services (except Public Administration) 459 2.3% 576 Educational Services 284 1.4% 434 Energy 266 1.3% 441 Other (less than 1% individually) 1,322 6.6% 2,770 Grand Total $15,976 80.1% $23,496 HANCOCK WHITNEY Total Commercial Loans Outstanding % of Total Loans Commitment ($s in millions) Real Estate, Rental and Leasing $3,370 16.9% $4,618 Retail Trade 1,814 9.1% 2,236 Health Care and Social Assistance 1,741 8.7% 2,229 Hospitality 1,104 5.5% 1,228 Construction 1,067 5.3% 1,993 Manufacturing 962 4.8% 1,597 Wholesale Trade 818 4.1% 1,362 Finance and Insurance 804 4.0% 1,365 Transportation and Warehousing 804 4.0% 1,047 Public Administration 627 3.1% 649 Professional, Scientific, and Technical Services 534 2.7% 951 Other Services (except Public Administration) 459 2.3% 576 Educational Services 284 1.4% 434 Energy 266 1.3% 441 Other (less than 1% individually) 1,322 6.6% 2,770 Grand Total $15,976 80.1% $23,496
* Excludes PPP loans ** Structured solutions total $260 million company-wide, with $8 million criticized, and $22 million pass-watch As of September 30, 2021 Sectors Under Focus* East (MS, AL, FL, TN); Central (Greater N.O., SELA); West (SWLA, TX) Criticized NPL Pass-Watch Structured Solutions** $ in millions East Central West Other Total $ % $ % $ % $ % Retail Retail -ICRE $162 $296 $226 $ — $684 $4 1% $4 1% $9 1% $— — Retail Goods and Services 448 376 193 114 1,131 13 1% — — 9 1% — — Total 609 672 419 114 1,814 17 1% 4 — 19 1% — — Health Care and Social Assistance Assisted Living (ICRE) 253 51 104 — 409 9 2% — — 2 1% 51 12% Assisted Living (non-CRE) 121 73 1 — 194 — — — — 45 23% — — Total 374 124 105 — 602 9 2% — — 47 8% 51 8% Hospitality Hotel 171 242 92 — 505 1 — — — 17 3% 169 33% Restaurants Full Service, Casual Dining and Bars 99 163 37 — 299 35 12% 1 — 21 7% 12 4% Entertainment 42 73 21 — 136 7 5% 2 2% 36 26% — — Total 312 478 151 — 940 43 5% 3 — 73 8% 181 19% Total Sectors Under Focus $1,295 $1,274 $674 $114 $3,357 $69 2% $7 — $139 4% $232 7% Insert Karna Hai HNCOCK WHITNEY Criticized NPL Pass-Watch Structured Solutions** $ in millions East Central West Other Total $ % $ % $ % $ % Retail Retail - ICRE $162 $296 $226 $ — $684 $4 1% $4 1% $9 1% $— — Retail Goods and Services 448 376 193 114 1,131 13 1% — — 9 1% — — Total 609 672 419 114 1,814 17 1% 4 — 19 1% — — Health Care and Social Assistance Assisted Living (ICRE) 253 51 104 — 409 9 2% — — 2 1% 51 12% Assisted Living (non-CRE) 121 73 1 — 194 — — — — 45 23% — — Total 374 124 105 — 602 9 2% — — 47 8% 51 8% Hospitality Hotel 171 242 92 — 505 1 — — — 17 3% 169 33% Restaurants Full Service, Casual Dining and Bars 99 163 37 — 299 35 12% 1 — 21 7% 12 4% Entertainment 42 73 21 — 136 7 5% 2 2% 36 26% — — Total 312 478 151 — 940 43 5% 3 — 73 8% 181 19% Total Sectors Under Focus $1,295 $1,274 $674 $114 $3,357 $69 2% $7 — $139 4% $232 7%
Current Hedge Positions Cash Flow (CF) Hedges Current net receive on notional CF Hedges is approximately 1.50% on $1 billion or approximately $15 million annualized $500 million in CF Hedges were terminated in 3Q21 Total Termination Value on remaining active CF Hedges is approximately $10.1 million as of 9/30/21 Termination locks in current economic value but removes protection of the hedge, therefore increasing asset sensitivity Fair Value (FV) Hedges $1.8 billion in securities are hedged with $1.6 billion of FV Hedges Duration (Market Price Risk) reduced from approximately 7.8 to 4.5 on hedged securities Current Termination Value of FV Hedges is approximately $20 million at 9/30/2021 When terminated at a gain, the value of each hedge reduces the book value of the underlying security, thereby increasing its current book yield The impact of early termination at current rates and +100bps is reflected below: Example Termination Notional Increase in Reported IRR Sensitivity per 100bps shock $500MM 0.55% Current Book Yield ($1.8 billion) Current Termination Yield Increase Future Action after Rates +100bps - Termination Yield Increase No Action Taken Convert to Floating (Starting ~ 2024) 1.63% + 0.14% + 0.69% Fed Effective + 35bps Example Termination Notional Increase in Reported IRR Sensitivity per 100bps shock $500MM 0.55% Current Book Yield ($1.8 billion) Current Termination Yield Increase Future Action after Rates +100bps - Termination Yield Increase No Action Taken Convert to Floating (Starting ~ 2024) 1.63% + 0.14% + 0.69% Fed Effective + 35bps
Strong Liquidity $20.9 Billion in Available Sources ($ in millions) Total Available Amount Used Net Availability Internal Sources Free Securities and other $7,829 $— $7,829 External Sources Federal Home Loan Bank (FHLB) 5,834 2,134 3,700 Federal Reserve Bank (FRB) 3,605 — 3,605 Brokered Deposits 4,381 9 4,372 Other 1,369 — 1,369 Total Liquidity $23,018 $2,143 $20,875 * Includes PPP loans $20.9 Billion in Available Sources ($ in millions) Total Available Amount Used Net Availability Internal Sources Free Securities and other $7,829 $— $7,829 External Sources Federal Home Loan Bank (FHLB) 5,834 2,134 3,700 Federal Reserve Bank (FRB) 3,605 — 3,605 Brokered Deposits 4,381 9 4,372 Other 1,369 — 1,369 Total Liquidity $23,018 $2,143 $20,875 Relatively Low Average Loan/Deposit Ratio Interest-bearing deposits44% DDA39% Other liabilities & debt7% Equity10% Strong Core Funding 90.0% 1Q20 2Q20* 3Q20* 4Q20* 1Q21* 2Q21* 3Q21* 87.3% 86.0% 83.7% 81.6% 77.3% 73.2% 71.6% 85.0% 80.0% 75.0% 70.0% 65.0% Line chart
Solid Capital in Excess of Regulatory Minimums (1) Regulatory minimum with Capital Conservation Buffer (CCB) must be met in order for a bank holding company to engage in certain capital activities including, but not limited to, paying shareholder dividends. Leverage ratio does not have a CCB requirement Solid Capital in Excess of Regulatory Minimums (1) Regulatory minimum with Capital Conservation Buffer (CCB) must be met in order for a bank holding company to engage in certain capital activities including, but not limited to, paying shareholder dividends. Leverage ratio does not have a CCB requirement Estimated Regulatory Capital as of September30, 2021 $s in millions Common Equity Tier 1 Tier 1 Capital Total Risk-based Capital Tier 1LeverageRatio Total Asset Base $25,001 $25,001 $25,001 $34,344 Total Capital 2,798 2,798 3,274 2,798 Capital Ratio 11.19% 11.19% 13.09% 8.15% Regulatory Minimum $ with CCB (1) 1,750 2,125 2,625 1,374 Regulatory Minimum with CCB (1) 7.00% 8.50% 10.50% 4.00% Capital in excess of Regulatory 1,048 673 649 1,425 minimum with CCB 4.19% 2.69% 2.59% 4.15% 29 Estimated Regulatory Capital as of September 30, 2021 $s in millions Common Equity Tier 1 Tier 1 Capital Total Risk-based Capital Tier 1 Leverage Ratio Total Asset Base $25,001 $25,001 $25,001 $34,344 Total Capital 2,798 2,798 3,274 2,798 Capital Ratio 11.19% 11.19% 13.09% 8.15% Regulatory Minimum $ with CCB (1) 1,750 2,125 2,625 1,374 Regulatory Minimum with CCB (1) 7.00% 8.50% 10.50% 4.00% Capital in excess of Regulatory 1,048 673 649 1,425 minimum with CCB 4.19% 2.69% 2.59% 4.15%
Hurricane Ida Update Hurricane Ida made landfall in Southeast Louisiana on August 29th as a Category 4 hurricane 80 banking locations and 113 ATMs were located in the hurricane-impacted areas Associates worked diligently to open financial centers and power ATMs after the storm passed impacting the regions’ electric grid Impacted area Company’s operational and client-facing systems functioned and performed well
Hurricane Ida Update Reinforced with technological and structural enhancements the company has implemented since Hurricane Katrina, our corporate headquarters in Gulfport MS, technology center and operations centers opened without storm damage Loan portfolios in the impacted markets have been reviewed to determine loss content; to-date nothing material has been noted Allowance for credit losses at September 30, 2021 was 1.92% (2.00% excluding PPP loans) Many clients switched to digital banking, mobile banking, and ATM delivery channels during COVID shutdown Disaster Fee Waiver and Loan Deferral programs were offered to customers in impacted areas; in addition, loan specials were offered to clients needing immediate assistance Region Total Loans (as of 9/30/2021) Total Deposits (as of 9/30/2021) Financial Centers (as of 9/30/2021) Greater New Orleans Region* 4,804 9,705 45 Greater Baton Rouge Region* 1,729 3,633 26 Greater Houma Region* 538 1,212 9 Lafayette Market 766 1,895 14 Lake Charles Market 158 836 6 Northwest LA Market 82 225 5 Total Louisiana 8,077 17,506 105 ** * Regions impacted by Hurricane Ida ** Includes 10 financial centers closed 10/8/2021 Region Total Loans (as of 9/30/2021) Total Deposits (as of 9/30/2021) Financial Centers (as of 9/30/2021) Greater New Orleans Region* 4,804 9,705 45 Greater Baton Rouge Region* 1,729 3,633 26 Greater Houma Region* 538 1,212 9 Lafayette Market 766 1,895 14 Lake Charles Market 158 836 6 Northwest LA Market 82 225 5 Total Louisiana 8,077 17,506 105 **
Third Quarter 2021 Earnings Conference Call 10/19/2021 HANCOCK WHITNEY