Hancock Whitney Reports Third Quarter 2024 EPS of $1.33
Third Quarter 2024 Highlights
-
Net income totaled
$115.6 million , compared to$114.6 million in the prior quarter -
Pre-provision net revenue (PPNR) totaled
$166.5 million , compared to$156.4 million in the prior quarter -
Loans decreased
$456 million , or 8% linked quarter annualized (LQA) -
Deposits decreased
$218 million , or 3% LQA - Criticized commercial loans increased and nonaccrual loans decreased
- ACL coverage solid at 1.46%, up 3 bps compared to prior quarter
- NIM 3.39%, up 2 bps compared to prior quarter
- CET1 ratio estimated at 13.79%, up 54 bps linked-quarter; TCE ratio 9.56%, up 79 bps linked-quarter
- Efficiency ratio 54.42%, down 176 bps linked-quarter
“The third quarter results reflect the continued strength and stability of our company,” said
Loans
Total loans were
Average loans totaled
Deposits
Total deposits at
DDAs totaled
Average deposits for the third quarter of 2024 were
Asset Quality
The total allowance for credit losses (ACL) was
Criticized commercial loans totaled
Net Interest Income and Net Interest Margin (NIM)
Net interest income (TE) for the third quarter of 2024 was
Average earning assets were
Noninterest Income
Noninterest income totaled
Service charges on deposits were up
Investment and annuity income and insurance fees were up
Other noninterest income was
Noninterest Expense & Taxes
Noninterest expense totaled
Personnel expense totaled
ORE and other foreclosed assets was a net gain of
Other expense totaled
The effective income tax rate for the third quarter of 2024 was 20.4%.
Capital
Common stockholders’ equity at
Conference Call and Slide Presentation
Management will host a conference call for analysts and investors at
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
About
Since the late 1800s,
Non-GAAP Financial Measures
This news release includes non-GAAP financial measures to describe Hancock Whitney’s performance. These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. The reconciliations of those measures to GAAP measures are provided either in the financial tables or in Appendix A thereto.
Consistent with the provisions of subpart 229.1400 of the Securities and Exchange Commission’s Regulation S-K, “Disclosures by Bank and Savings and Loan Registrants,” the company presents net interest income, net interest margin and efficiency ratios on a fully taxable equivalent (“TE”) basis. The TE basis adjusts for the tax-favored status of net interest income from certain loans and investments using the statutory federal tax rate to increase tax-exempt interest income to a taxable equivalent basis. The company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.
The company presents certain additional non-GAAP financial measures to assist the reader with a better understanding of the company’s performance period over period, as well as to provide investors with assistance in understanding the success management has experienced in executing its strategic initiatives. The company highlights certain items that are outside of our principal business and/or are not indicative of forward-looking trends in supplemental disclosures items below our GAAP financial data and presents certain “Adjusted” ratios that exclude these disclosed items. These adjusted ratios provide management or the reader with a measure that may be more indicative of forward-looking trends in our business, as well as demonstrates the effects of significant gains or losses and changes.
We define Adjusted Pre-Provision Net Revenue as net income excluding provision expense and income tax expense, plus the taxable equivalent adjustment (as defined above), less supplemental disclosure items (as defined above). Management believes that adjusted pre-provision net revenue is a useful financial measure because it enables investors and others to assess the company’s ability to generate capital to cover credit losses through a credit cycle. We define Adjusted Revenue as net interest income (te) and noninterest income less supplemental disclosure items. We define Adjusted Noninterest Expense as noninterest expense less supplemental disclosure items. We define our Efficiency Ratio as noninterest expense to total net interest income (te) and noninterest income, excluding amortization of purchased intangibles and supplemental disclosure items, if applicable. Management believes adjusted revenue, adjusted noninterest expense and the efficiency ratio are useful measures as they provide a greater understanding of ongoing operations and enhance comparability with prior periods.
Important Cautionary Statement about Forward-Looking Statements
This release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements that we may make include statements regarding our expectations of our performance and financial condition, balance sheet and revenue growth, the provision for credit losses, capital levels, deposits (including growth, pricing, and betas), investment portfolio, other sources of liquidity, loan growth expectations, management’s predictions about charge-offs for loans, general economic business conditions in our local markets,
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
|
||||||||||||||||||||
FINANCIAL HIGHLIGHTS |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
(dollars and common share data in thousands, except per share amounts) |
|
|
|
|
|
|||||||||||||||
NET INCOME | ||||||||||||||||||||
Net interest income |
$ |
271,764 |
|
$ |
270,430 |
|
$ |
269,234 |
|
$ |
808,365 |
|
$ |
828,139 |
|
|||||
Net interest income (TE) (a) |
|
274,457 |
|
|
273,258 |
|
|
272,086 |
|
|
816,716 |
|
|
836,412 |
|
|||||
Provision for credit losses |
|
18,564 |
|
|
8,723 |
|
|
28,498 |
|
|
40,255 |
|
|
42,151 |
|
|||||
Noninterest income |
|
95,895 |
|
|
89,174 |
|
|
85,974 |
|
|
272,920 |
|
|
249,529 |
|
|||||
Noninterest expense |
|
203,839 |
|
|
206,016 |
|
|
204,675 |
|
|
617,577 |
|
|
607,697 |
|
|||||
Income tax expense |
|
29,684 |
|
|
30,308 |
|
|
24,297 |
|
|
84,712 |
|
|
85,821 |
|
|||||
Net income |
$ |
115,572 |
|
$ |
114,557 |
|
$ |
97,738 |
|
$ |
338,741 |
|
$ |
341,999 |
|
|||||
Supplemental disclosure items - included above, pre-tax | ||||||||||||||||||||
Included in noninterest expense | ||||||||||||||||||||
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
3,800 |
|
$ |
— |
|
|||||
PERIOD-END BALANCE SHEET DATA | ||||||||||||||||||||
Loans |
$ |
23,455,587 |
|
$ |
23,911,616 |
|
$ |
23,983,679 |
|
$ |
23,455,587 |
|
$ |
23,983,679 |
|
|||||
Securities |
|
7,769,780 |
|
|
7,535,836 |
|
|
7,916,101 |
|
|
7,769,780 |
|
|
7,916,101 |
|
|||||
Earning assets |
|
32,045,222 |
|
|
32,056,415 |
|
|
32,733,591 |
|
|
32,045,222 |
|
|
32,733,591 |
|
|||||
Total assets |
|
35,238,107 |
|
|
35,412,291 |
|
|
36,298,301 |
|
|
35,238,107 |
|
|
36,298,301 |
|
|||||
Noninterest-bearing deposits |
|
10,499,476 |
|
|
10,642,213 |
|
|
11,626,371 |
|
|
10,499,476 |
|
|
11,626,371 |
|
|||||
Total deposits |
|
28,982,905 |
|
|
29,200,718 |
|
|
30,320,337 |
|
|
28,982,905 |
|
|
30,320,337 |
|
|||||
Common stockholders' equity |
|
4,174,687 |
|
|
3,920,718 |
|
|
3,501,003 |
|
|
4,174,687 |
|
|
3,501,003 |
|
|||||
AVERAGE BALANCE SHEET DATA | ||||||||||||||||||||
Loans |
$ |
23,552,002 |
|
$ |
23,917,361 |
|
$ |
23,830,724 |
|
$ |
23,759,083 |
|
$ |
23,526,808 |
|
|||||
Securities (b) |
|
8,218,896 |
|
|
8,214,172 |
|
|
8,888,477 |
|
|
8,210,192 |
|
|
9,010,201 |
|
|||||
Earning assets |
|
32,263,748 |
|
|
32,539,363 |
|
|
33,137,565 |
|
|
32,452,619 |
|
|
33,171,798 |
|
|||||
Total assets |
|
34,780,386 |
|
|
34,998,880 |
|
|
35,626,927 |
|
|
34,959,722 |
|
|
35,665,505 |
|
|||||
Noninterest-bearing deposits |
|
10,359,390 |
|
|
10,526,903 |
|
|
11,453,236 |
|
|
10,519,199 |
|
|
12,184,410 |
|
|||||
Total deposits |
|
28,940,163 |
|
|
29,069,097 |
|
|
29,757,180 |
|
|
29,189,160 |
|
|
29,311,176 |
|
|||||
Common stockholders' equity |
|
4,021,211 |
|
|
3,826,296 |
|
|
3,572,487 |
|
|
3,889,265 |
|
|
3,518,105 |
|
|||||
COMMON SHARE DATA | ||||||||||||||||||||
Earnings per share - diluted |
$ |
1.33 |
|
$ |
1.31 |
|
$ |
1.12 |
|
$ |
3.88 |
|
$ |
3.92 |
|
|||||
Cash dividends per share |
|
0.40 |
|
|
0.40 |
|
|
0.30 |
|
|
1.10 |
|
|
0.90 |
|
|||||
Book value per share (period-end) |
|
48.47 |
|
|
45.40 |
|
|
40.64 |
|
|
48.47 |
|
|
40.64 |
|
|||||
Tangible book value per share (period-end) |
|
38.10 |
|
|
35.04 |
|
|
30.16 |
|
|
38.10 |
|
|
30.16 |
|
|||||
Weighted average number of shares - diluted |
|
86,560 |
|
|
86,765 |
|
|
86,437 |
|
|
86,650 |
|
|
86,368 |
|
|||||
Period-end number of shares |
|
86,136 |
|
|
86,355 |
|
|
86,148 |
|
|
86,136 |
|
|
86,148 |
|
|||||
Market data | ||||||||||||||||||||
High sales price |
$ |
57.78 |
|
$ |
49.11 |
|
$ |
45.15 |
|
$ |
57.78 |
|
$ |
54.38 |
|
|||||
Low sales price |
|
45.26 |
|
|
41.56 |
|
|
35.34 |
|
|
41.19 |
|
|
31.02 |
|
|||||
Period-end closing price |
|
51.17 |
|
|
47.83 |
|
|
36.99 |
|
|
51.17 |
|
|
36.99 |
|
|||||
Trading volume |
|
35,017 |
|
|
29,308 |
|
|
34,506 |
|
|
94,834 |
|
|
112,391 |
|
|||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average assets |
|
1.32 |
% |
|
1.32 |
% |
|
1.09 |
% |
|
1.29 |
% |
|
1.28 |
% |
|||||
Return on average common equity |
|
11.43 |
% |
|
12.04 |
% |
|
10.85 |
% |
|
11.63 |
% |
|
13.00 |
% |
|||||
Return on average tangible common equity |
|
14.70 |
% |
|
15.73 |
% |
|
14.53 |
% |
|
15.12 |
% |
|
17.51 |
% |
|||||
Tangible common equity ratio (c) |
|
9.56 |
% |
|
8.77 |
% |
|
7.34 |
% |
|
9.56 |
% |
|
7.34 |
% |
|||||
Net interest margin (TE) |
|
3.39 |
% |
|
3.37 |
% |
|
3.27 |
% |
|
3.36 |
% |
|
3.37 |
% |
|||||
Noninterest income as a percentage of total revenue (TE) |
|
25.89 |
% |
|
24.60 |
% |
|
24.01 |
% |
|
25.05 |
% |
|
22.98 |
% |
|||||
Efficiency ratio (d) |
|
54.42 |
% |
|
56.18 |
% |
|
56.38 |
% |
|
55.67 |
% |
|
55.14 |
% |
|||||
Average loan/deposit ratio |
|
81.38 |
% |
|
82.28 |
% |
|
80.08 |
% |
|
81.40 |
% |
|
80.27 |
% |
|||||
Allowance for loan losses as a percentage of period-end loans |
|
1.35 |
% |
|
1.32 |
% |
|
1.28 |
% |
|
1.35 |
% |
|
1.28 |
% |
|||||
Allowance for credit losses as a percentage of period-end loans (e) |
|
1.46 |
% |
|
1.43 |
% |
|
1.40 |
% |
|
1.46 |
% |
|
1.40 |
% |
|||||
Annualized net charge-offs to average loans |
|
0.30 |
% |
|
0.12 |
% |
|
0.64 |
% |
|
0.19 |
% |
|
0.27 |
% |
|||||
Allowance for loan losses as a % of nonaccrual loans |
|
382.87 |
% |
|
366.54 |
% |
|
507.68 |
% |
|
382.87 |
% |
|
507.68 |
% |
|||||
FTE headcount |
|
3,458 |
|
|
3,541 |
|
|
3,681 |
|
|
3,458 |
|
|
3,681 |
|
|||||
(a) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%. | ||||||||||||||||||||
(b) Average securities does not include unrealized holding gains/losses on available for sale securities. | ||||||||||||||||||||
(c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. | ||||||||||||||||||||
(d) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and supplemental disclosure items noted above. | ||||||||||||||||||||
(e) The allowance for credit losses includes the allowance for loan and lease losses and the reserve for unfunded lending commitments. |
|
||||||||||||||||||||
QUARTERLY FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(dollars and common share data in thousands, except per share amounts) |
|
|
|
|
|
|||||||||||||||
NET INCOME | ||||||||||||||||||||
Net interest income |
$ |
271,764 |
|
$ |
270,430 |
|
$ |
266,171 |
|
$ |
269,460 |
|
$ |
269,234 |
|
|||||
Net interest income (TE) (a) |
|
274,457 |
|
|
273,258 |
|
|
269,001 |
|
|
272,294 |
|
|
272,086 |
|
|||||
Provision for credit losses |
|
18,564 |
|
|
8,723 |
|
|
12,968 |
|
|
16,952 |
|
|
28,498 |
|
|||||
Noninterest income |
|
95,895 |
|
|
89,174 |
|
|
87,851 |
|
|
38,951 |
|
|
85,974 |
|
|||||
Noninterest expense |
|
203,839 |
|
|
206,016 |
|
|
207,722 |
|
|
229,151 |
|
|
204,675 |
|
|||||
Income tax expense |
|
29,684 |
|
|
30,308 |
|
|
24,720 |
|
|
11,705 |
|
|
24,297 |
|
|||||
Net income |
$ |
115,572 |
|
$ |
114,557 |
|
$ |
108,612 |
|
$ |
50,603 |
|
$ |
97,738 |
|
|||||
Supplemental disclosure items - included above, pre-tax | ||||||||||||||||||||
Included in noninterest income | ||||||||||||||||||||
Gain on sale of parking facility |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
16,126 |
|
$ |
— |
|
|||||
Loss on securities portfolio restructure |
|
— |
|
|
— |
|
|
— |
|
|
(65,380 |
) |
|
— |
|
|||||
Included in noninterest expense | ||||||||||||||||||||
|
|
— |
|
|
— |
|
|
3,800 |
|
|
26,123 |
|
|
— |
|
|||||
PERIOD-END BALANCE SHEET DATA | ||||||||||||||||||||
Loans |
$ |
23,455,587 |
|
$ |
23,911,616 |
|
$ |
23,970,938 |
|
$ |
23,921,917 |
|
$ |
23,983,679 |
|
|||||
Securities |
|
7,769,780 |
|
|
7,535,836 |
|
|
7,559,182 |
|
|
7,599,974 |
|
|
7,916,101 |
|
|||||
Earning assets |
|
32,045,222 |
|
|
32,056,415 |
|
|
31,985,610 |
|
|
32,175,097 |
|
|
32,733,591 |
|
|||||
Total assets |
|
35,238,107 |
|
|
35,412,291 |
|
|
35,247,119 |
|
|
35,578,573 |
|
|
36,298,301 |
|
|||||
Noninterest-bearing deposits |
|
10,499,476 |
|
|
10,642,213 |
|
|
10,802,127 |
|
|
11,030,515 |
|
|
11,626,371 |
|
|||||
Total deposits |
|
28,982,905 |
|
|
29,200,718 |
|
|
29,775,906 |
|
|
29,690,059 |
|
|
30,320,337 |
|
|||||
Common stockholders' equity |
|
4,174,687 |
|
|
3,920,718 |
|
|
3,853,436 |
|
|
3,803,661 |
|
|
3,501,003 |
|
|||||
AVERAGE BALANCE SHEET DATA | ||||||||||||||||||||
Loans |
$ |
23,552,002 |
|
$ |
23,917,361 |
|
$ |
23,810,163 |
|
$ |
23,795,681 |
|
$ |
23,830,724 |
|
|||||
Securities (b) |
|
8,218,896 |
|
|
8,214,172 |
|
|
8,197,410 |
|
|
8,579,444 |
|
|
8,888,477 |
|
|||||
Earning assets |
|
32,263,748 |
|
|
32,539,363 |
|
|
32,556,821 |
|
|
33,128,130 |
|
|
33,137,565 |
|
|||||
Total assets |
|
34,780,386 |
|
|
34,998,880 |
|
|
35,101,869 |
|
|
35,538,300 |
|
|
35,626,927 |
|
|||||
Noninterest-bearing deposits |
|
10,359,390 |
|
|
10,526,903 |
|
|
10,673,060 |
|
|
11,132,354 |
|
|
11,453,236 |
|
|||||
Total deposits |
|
28,940,163 |
|
|
29,069,097 |
|
|
29,560,956 |
|
|
29,974,941 |
|
|
29,757,180 |
|
|||||
Common stockholders' equity |
|
4,021,211 |
|
|
3,826,296 |
|
|
3,818,840 |
|
|
3,560,978 |
|
|
3,572,487 |
|
|||||
COMMON SHARE DATA | ||||||||||||||||||||
Earnings per share - diluted |
$ |
1.33 |
|
$ |
1.31 |
|
$ |
1.24 |
|
$ |
0.58 |
|
$ |
1.12 |
|
|||||
Cash dividends per share |
|
0.40 |
|
|
0.40 |
|
|
0.30 |
|
|
0.30 |
|
|
0.30 |
|
|||||
Book value per share (period-end) |
|
48.47 |
|
|
45.40 |
|
|
44.49 |
|
|
44.05 |
|
|
40.64 |
|
|||||
Tangible book value per share (period-end) |
|
38.10 |
|
|
35.04 |
|
|
34.12 |
|
|
33.63 |
|
|
30.16 |
|
|||||
Weighted average number of shares - diluted |
|
86,560 |
|
|
86,765 |
|
|
86,726 |
|
|
86,604 |
|
|
86,437 |
|
|||||
Period-end number of shares |
|
86,136 |
|
|
86,355 |
|
|
86,622 |
|
|
86,345 |
|
|
86,148 |
|
|||||
Market data | ||||||||||||||||||||
High sales price |
$ |
57.78 |
|
$ |
49.11 |
|
$ |
49.10 |
|
$ |
49.65 |
|
$ |
45.15 |
|
|||||
Low sales price |
|
45.26 |
|
|
41.56 |
|
|
41.19 |
|
|
32.16 |
|
|
35.34 |
|
|||||
Period-end closing price |
|
51.17 |
|
|
47.83 |
|
|
46.04 |
|
|
48.59 |
|
|
36.99 |
|
|||||
Trading volume |
|
35,017 |
|
|
29,308 |
|
|
30,508 |
|
|
38,574 |
|
|
34,506 |
|
|||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average assets |
|
1.32 |
% |
|
1.32 |
% |
|
1.24 |
% |
|
0.56 |
% |
|
1.09 |
% |
|||||
Return on average common equity |
|
11.43 |
% |
|
12.04 |
% |
|
11.44 |
% |
|
5.64 |
% |
|
10.85 |
% |
|||||
Return on average tangible common equity |
|
14.70 |
% |
|
15.73 |
% |
|
14.96 |
% |
|
7.55 |
% |
|
14.53 |
% |
|||||
Tangible common equity ratio (c) |
|
9.56 |
% |
|
8.77 |
% |
|
8.61 |
% |
|
8.37 |
% |
|
7.34 |
% |
|||||
Net interest margin (TE) |
|
3.39 |
% |
|
3.37 |
% |
|
3.32 |
% |
|
3.27 |
% |
|
3.27 |
% |
|||||
Noninterest income as a percentage of total revenue (TE) |
|
25.89 |
% |
|
24.60 |
% |
|
24.62 |
% |
|
12.51 |
% |
|
24.01 |
% |
|||||
Efficiency ratio (d) |
|
54.42 |
% |
|
56.18 |
% |
|
56.44 |
% |
|
55.58 |
% |
|
56.38 |
% |
|||||
Average loan/deposit ratio |
|
81.38 |
% |
|
82.28 |
% |
|
80.55 |
% |
|
79.39 |
% |
|
80.08 |
% |
|||||
Allowance for loan losses as a percentage of period-end loans |
|
1.35 |
% |
|
1.32 |
% |
|
1.31 |
% |
|
1.29 |
% |
|
1.28 |
% |
|||||
Allowance for credit losses as a percentage of period-end loans (e) |
|
1.46 |
% |
|
1.43 |
% |
|
1.42 |
% |
|
1.41 |
% |
|
1.40 |
% |
|||||
Annualized net charge-offs to average loans |
|
0.30 |
% |
|
0.12 |
% |
|
0.15 |
% |
|
0.27 |
% |
|
0.64 |
% |
|||||
Allowance for loan losses as a % of nonaccrual loans |
|
382.87 |
% |
|
366.54 |
% |
|
382.21 |
% |
|
521.56 |
% |
|
507.68 |
% |
|||||
FTE headcount |
|
3,458 |
|
|
3,541 |
|
|
3,564 |
|
|
3,591 |
|
|
3,681 |
|
|||||
(a) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%. | ||||||||||||||||||||
(b) Average securities does not include unrealized holding gains/losses on available for sale securities. | ||||||||||||||||||||
(c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. | ||||||||||||||||||||
(d) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and supplemental disclosures noted above. | ||||||||||||||||||||
(e) The allowance for credit losses includes the allowance for loan and lease losses and the reserve for unfunded lending commitments. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241015791507/en/
504.539.7836 or kathryn.mistich@hancockwhitney.com
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