EX-99.1 2 hwc-ex991_6.htm EX-99.1 hwc-ex991_6.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

April 16, 2019

 

 

For more information

Trisha Voltz Carlson, EVP, Investor Relations Manager

504.299.5208 or trisha.carlson@hancockwhitney.com

 

 

Hancock Whitney reports first quarter 2019 EPS of $.91

Results include $10.1 million, or $.09 per share after tax, impact from provision on alleged fraud

 

GULFPORT, Miss. (April 16, 2019) — Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the first quarter of 2019. Net income for the first quarter of 2019 was $79.2 million, or $.91 per diluted common share (EPS), compared to $96.2 million, or $1.10 EPS, in the fourth quarter of 2018 and $72.5 million, or $.83 EPS, in the first quarter of 2018. The first quarter of 2019 included a $10.1 million ($.09 per share after-tax impact) provision for loan losses related to the previously disclosed alleged fraud related to DC Solar. The fourth quarter of 2018 included $1.9 million ($.02 per share impact) of nonoperating items and the first quarter of 2018 included $7.0 million ($.07 per share impact) of nonoperating items.

 

Highlights of the company’s first quarter 2019 results (compared to fourth quarter 2018):

 

Net income of $79.2 million, or $.91 per diluted share, down $17.1 million, or $.19 per share

 

Linked-quarter changes impacted by provision/chargeoff related to alleged fraud on equipment finance lease with DC Solar ($.09) in 1Q19 and benefits from tax reform-related initiatives ($.11) in 4Q18

 

NIM expansion of 7 basis points (bps) to 3.46%

 

Criticized commercial loans declined $41 million, or 7% ($15 million energy, $26 million nonenergy)

 

TCE ratio up 34 bps to 8.36%

 

Improved mix in energy portfolio

 

“We were pleased with improvement in 2 key focus areas for the quarter - NIM and asset quality”, said John M. Hairston, President and CEO. “We are relentlessly focused on returning these metrics to peer averages or better, and will work diligently to continue the progress towards achieving these goals, and our CSOs, despite recent headwinds from paydowns and the rate environment.”

 

Loans

Total loans at March 31, 2019 were $20.1 billion, up approximately $86 million, or less than 1%, linked-quarter. Net loan growth during the quarter continues to be diversified across our regions with many regions

1

 


 

Hancock Whitney reports first quarter 2019 financial results

April 16, 2019

 

reporting strong growth. Net loan growth was lower than guidance primarily related to the impact from unanticipated paydowns, loan charge-offs, and sale of mortgage loans.

 

Average loans totaled $20.1 billion for the first quarter of 2019, up $309 million, or 2%, linked-quarter.

 

At March 31, 2019, loans to the energy industry totaled $1.1 billion, or 5.3% of total loans. The energy portfolio was virtually unchanged linked-quarter, and is comprised of credits to both the exploration and production (E&P) subsector and the support services subsector. We continue our focus on shifting the mix between subsectors to deemphasize the support services subsector. As of March 31, 2019, the energy portfolio was comprised of 54% RBL and midstream credits and 46% support services credits compared to 44% RBL and midstream and 56% support services credits at year-end 2014.

 

Deposits

Total deposits at March 31, 2019 were $23.4 billion, up $230 million, or 1%, from December 31, 2018. Average deposits for the first quarter of 2019 were $23.1 billion, up $616 million, or 3%, linked-quarter.

 

Noninterest-bearing demand deposits (DDAs) totaled $8.2 billion at March 31, 2019, down $340 million, or 4%, from December 31, 2018. The decrease in DDAs is mainly related to typical seasonal outflows. DDAs comprised 35% of total period-end deposits at March 31, 2019.

 

Interest-bearing transaction and savings deposits totaled $8.2 billion at the end of the first quarter of 2019, up $224 million, or 3%, from December 31, 2018. Time deposits of $3.8 billion were up $123 million, or 3%, while interest-bearing public fund deposits increased $223 million, or 7%, to $3.2 billion. The net increase in time deposits reflects an increase in brokered CDs of $21 million and an increase of $102 million in retail CDs.

 

Asset Quality

Nonperforming assets (NPAs) totaled $349.6 million at March 31, 2019, down $3.0 million, or 1%, from December 31, 2018. During the first quarter of 2019, total nonperforming loans decreased approximately $3.9 million, while foreclosed and surplus real estate (ORE) and other foreclosed assets increased approximately $0.9 million. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 1.74% at March 31, 2019, down 2 bps from December 31, 2018.

 

The total allowance for loan and lease losses (ALLL) was $194.7 million at March 31, 2019, virtually unchanged from December 31, 2018. The allowance for credits in the energy portfolio totaled $31.5 million, or 3.0% of energy loans, at March 31, 2019, down $1.7 million from $33.2 million, or 3.1% of energy loans, at December 31, 2018. The allowance for credits in the nonenergy portfolio totaled $163.2 million, or 0.86% of nonenergy loans, at March 31, 2019, up $1.9 million from $161.3 million, or 0.85% of nonenergy loans, at December 31, 2018. The ratio of the ALLL to period-end loans was 0.97% at March 31, 2019, unchanged from December 31, 2018.

 

Net charge-offs were $17.9 million, or 0.36% of average total loans on an annualized basis in the first quarter of 2019, down from $28.1 million, or 0.56% of average total loans in the fourth quarter of 2018. There were no energy charge-offs in the first quarter of 2019. During the first quarter of 2019, the company recorded a

2


 

Hancock Whitney reports first quarter 2019 financial results

April 16, 2019

 

total provision for loan losses of $18.0 million, up from $8.1 million in the fourth quarter of 2018. Approximately $10.1 million of net charge-offs was related to the DC Solar credit.

 

Net Interest Income and Net Interest Margin (NIM)

Net interest income (TE) for the first quarter of 2019 was $223.1 million, up $1.6 million from the fourth quarter of 2018. The net interest margin (TE) was 3.46% for the first quarter of 2019, up 7 bps from the fourth quarter of 2018. Drivers for both the net interest income and net interest margin improvements were a shift in the mix of earning assets coupled with the full quarter impact of the portfolio restructuring and the December 2018 rate hike.

 

Average earning assets were $26.0 billion for the first quarter of 2019, up $9.3 million, or less than 1%, from the fourth quarter of 2018.

 

Noninterest Income

Noninterest income totaled $70.5 million for the first quarter of 2019, down $4.0 million, or 5%, from the fourth quarter of 2018. There was a $0.6 million net gain related to the portfolio restructuring in the fourth quarter of 2018.

 

Service charges on deposits totaled $20.4 million for the first quarter of 2019, down $1.1 million, or 5%, from the fourth quarter of 2018. Bank card and ATM fees totaled $15.3 million, down $0.4 million, or 2%, from the fourth quarter of 2018. The decrease from the fourth quarter is primarily due to seasonality.

 

Trust fees totaled $15.1 million, down $0.6 million, or 4% linked-quarter. The net decline from the fourth quarter is mainly related to early first quarter of 2019 market conditions and its impact on managed asset values.

 

Investment and annuity income and insurance fees totaled $6.5 million, up $0.2 million, or 4%, linked-quarter. Fees from secondary mortgage operations totaled $3.7 million for the first quarter of 2019, down $0.2 million, or 5%, linked-quarter. Other noninterest income totaled $9.5 million, down $1.3 million, or 12%, from the fourth quarter of 2018.

 

Noninterest Expense & Taxes

Noninterest expense for the first quarter of 2019 totaled $175.7 million, down $3.7 million, or 2%, from the fourth quarter of 2018. There were $2.5 million of nonoperating expenses included in the fourth quarter total and no nonoperating expenses in the first quarter of 2019.  

 

Total personnel expense was $103.7 million in the first quarter of 2019, down $1.2 million, or 1%, from the fourth quarter of 2018. This decrease is mainly related to fewer days in the quarter.

 

Occupancy and equipment expense totaled $16.7 million in the first quarter of 2019, up $0.7 million, or 4%, from the fourth quarter of 2018.

 

Amortization of intangibles totaled $5.1 million for the first quarter of 2019, down $0.3 million or 6% linked-quarter.

 

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Hancock Whitney reports first quarter 2019 financial results

April 16, 2019

 

Gains on ORE dispositions exceeded ORE expense by $1.0 million in the first quarter of 2019, compared to ORE gains exceeding expenses by $2.9 million in the fourth quarter of 2018.

 

Other operating expense totaled $51.2 million in the first quarter of 2019, down $2.3 million, or 4%, from the fourth quarter of 2018. The decrease is primarily from reduced regulatory fees, professional services, advertising, and miscellaneous expenses.

 

The effective income tax rate for the first quarter of 2019 was 18%. Management expects the tax rate in the second quarter of 2019 to approximate 17-19%. The effective income tax rate continues to be less than the statutory rate due primarily to tax-exempt income and tax credits.

 

Capital

Common shareholders’ equity at March 31, 2019 totaled $3.2 billion, up $109 million, or 4%, from year-end 2018. The tangible common equity (TCE) ratio was 8.36%, up 34 bps from December 31, 2018. Additional capital ratios are included in the financial tables.

 

Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 8:30 a.m. Central Time on Wednesday, April 17, 2019 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 www.hancockwhitney.com/investors. A link to the release with additional financial tables, and a link to a slide presentation related to first quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial (877) 564-1219 or (973) 638-3429.  

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 April 24, 2019 by dialing (855) 859-2056 or (404) 537-3406, passcode 8128847.  

 

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, as well as trust and asset management offices in New Jersey and New York. 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.

 

4


 

Hancock Whitney reports first quarter 2019 financial results

April 16, 2019

 

Consistent with Securities and Exchange Commission Industry Guide 3, 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 concepts “core” or “operating.” The company uses the term “core” to describe a financial measure that excludes income or expense arising from accretion or amortization of fair value adjustments recorded as part of purchase accounting. 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.

 

We define Operating Revenue as net interest income (TE) and noninterest income less nonoperating revenue.  We define Operating Pre-Provision Net Revenue as operating revenue (TE) less noninterest expense, excluding nonoperating items. Management believes that operating 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. A reconciliation of reported net interest income to operating pre-provision net revenue is included in Appendix A.

 

We define Operating Earnings as reported net income excluding nonoperating items net of income tax.  We define Operating Earnings per Share as operating earnings expressed as an amount available to each common shareholder on a diluted basis. A reconciliation of reported net income to operating earnings is presented in the Income Statement table and a reconciliation of reported earnings per share – diluted to operating earnings per share – diluted is presented in Appendix A.  

 

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 balance sheet and revenue growth, the provision for loans losses, loan growth expectations, management’s predictions about charge-offs for loans, including energy-related credits, the impact of changes in oil and gas prices on our energy portfolio, the adequacy of our enterprise risk management framework, the impact of the transaction with Capital One or future business combinations on our performance and financial condition, including our ability to successfully integrate the business, deposit trends, credit quality trends, changes in interest rates, net interest margin trends, future expense levels, success of revenue-generating initiatives, the effectiveness of derivative financial instruments and hedging activities to manage risks, projected tax rates, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts such as accretion levels, increased cybersecurity risks, including potential business disruptions or financial losses, the adequacy of our internal controls over financial reporting, and the financial impact of regulatory

5


 

Hancock Whitney reports first quarter 2019 financial results

April 16, 2019

 

requirements and tax reform legislation. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “forecast,” “goals,” “targets,” “initiatives,” “focus,” “potentially,” “probably,” “projects,” “outlook", or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events.

 

Forward-looking statements are subject to significant risks and uncertainties. Any forward-looking statement made in this release is subject to the safe harbor protections set forth in the Private Securities Litigation Reform Act of 1995. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward looking statements. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018 and in other periodic reports that we file with the SEC.

6


 

HANCOCK WHITNEY CORPORATION

 

QUARTERLY FINANCIAL HIGHLIGHTS

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(dollars and common share data in thousands, except per share amounts)

 

3/31/2019

 

 

12/31/2018

 

 

9/30/2018

 

 

6/30/2018

 

 

3/31/2018

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

219,254

 

 

$

217,433

 

 

$

214,194

 

 

$

211,547

 

 

$

205,664

 

Net interest income (TE) (a)

 

 

223,078

 

 

 

221,471

 

 

 

218,289

 

 

 

215,628

 

 

 

209,627

 

Provision for loan losses

 

 

18,043

 

 

 

8,100

 

 

 

6,872

 

 

 

8,891

 

 

 

12,253

 

Noninterest income

 

 

70,503

 

 

 

74,538

 

 

 

75,518

 

 

 

68,832

 

 

 

66,252

 

Noninterest expense

 

 

175,700

 

 

 

179,366

 

 

 

181,187

 

 

 

184,402

 

 

 

170,791

 

Income tax expense

 

 

16,850

 

 

 

8,265

 

 

 

17,775

 

 

 

15,909

 

 

 

16,397

 

Net income

 

$

79,164

 

 

$

96,240

 

 

$

83,878

 

 

$

71,177

 

 

$

72,475

 

Earnings excluding nonoperating items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

79,164

 

 

$

96,240

 

 

$

83,878

 

 

$

71,177

 

 

$

72,475

 

Nonoperating items, net of income tax benefit

 

 

7,966

 

 

 

1,465

 

 

 

3,813

 

 

 

12,486

 

 

 

5,782

 

Operating earnings

 

$

87,130

 

 

$

97,705

 

 

$

87,691

 

 

$

83,663

 

 

$

78,257

 

PERIOD-END BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

20,112,838

 

 

$

20,026,411

 

 

$

19,543,717

 

 

$

19,370,917

 

 

$

19,092,504

 

Securities

 

 

5,577,522

 

 

 

5,670,584

 

 

 

5,987,447

 

 

 

6,113,873

 

 

 

5,930,076

 

Earning assets

 

 

25,881,559

 

 

 

25,836,239

 

 

 

25,668,281

 

 

 

25,625,047

 

 

 

25,105,948

 

Total assets

 

 

28,490,231

 

 

 

28,235,907

 

 

 

28,098,175

 

 

 

27,925,447

 

 

 

27,297,337

 

Noninterest-bearing deposits

 

 

8,158,658

 

 

 

8,499,027

 

 

 

8,140,530

 

 

 

8,165,796

 

 

 

8,230,060

 

Total deposits

 

 

23,380,294

 

 

 

23,150,185

 

 

 

22,417,807

 

 

 

22,235,338

 

 

 

22,485,722

 

Common stockholders' equity

 

 

3,190,575

 

 

 

3,081,340

 

 

 

2,978,878

 

 

 

2,929,555

 

 

 

2,896,038

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

20,126,948

 

 

$

19,817,729

 

 

$

19,464,639

 

 

$

19,193,234

 

 

$

19,028,490

 

Securities (b)

 

 

5,656,689

 

 

 

5,965,461

 

 

 

6,186,410

 

 

 

6,032,058

 

 

 

5,897,290

 

Earning assets

 

 

26,020,447

 

 

 

26,011,183

 

 

 

25,832,372

 

 

 

25,391,025

 

 

 

25,106,283

 

Total assets

 

 

28,451,548

 

 

 

28,259,963

 

 

 

28,026,923

 

 

 

27,485,052

 

 

 

27,237,077

 

Noninterest-bearing deposits

 

 

8,227,698

 

 

 

8,260,487

 

 

 

8,017,353

 

 

 

8,149,521

 

 

 

7,951,121

 

Total deposits

 

 

23,114,139

 

 

 

22,498,145

 

 

 

22,021,559

 

 

 

22,101,474

 

 

 

22,043,419

 

Common stockholders' equity

 

 

3,118,051

 

 

 

2,993,265

 

 

 

2,952,431

 

 

 

2,908,997

 

 

 

2,872,813

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted

 

$

0.91

 

 

$

1.10

 

 

$

0.96

 

 

$

0.82

 

 

$

0.83

 

Cash dividends per share

 

 

0.27

 

 

 

0.27

 

 

 

0.27

 

 

 

0.24

 

 

 

0.24

 

Book value per share (period-end)

 

 

37.23

 

 

 

35.98

 

 

 

34.90

 

 

 

34.33

 

 

 

33.96

 

Tangible book value per share (period-end)

 

 

26.92

 

 

 

25.62

 

 

 

24.44

 

 

 

24.66

 

 

 

24.22

 

Weighted average number of shares - diluted

 

 

85,800

 

 

 

85,677

 

 

 

85,539

 

 

 

85,483

 

 

 

85,423

 

Period-end number of shares

 

 

85,710

 

 

 

85,643

 

 

 

85,364

 

 

 

85,335

 

 

 

85,285

 

Market data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High sales price

 

$

44.34

 

 

$

49.22

 

 

$

53.00

 

 

$

55.00

 

 

$

56.40

 

Low sales price

 

 

34.11

 

 

 

32.59

 

 

 

46.05

 

 

 

45.76

 

 

 

49.48

 

Period-end closing price

 

 

40.40

 

 

 

34.77

 

 

 

47.55

 

 

 

46.65

 

 

 

51.70

 

Trading volume

 

 

28,124

 

 

 

33,269

 

 

 

28,332

 

 

 

35,705

 

 

 

35,370

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.13

%

 

 

1.35

%

 

 

1.19

%

 

 

1.04

%

 

 

1.08

%

Return on average common equity

 

 

10.30

%

 

 

12.76

%

 

 

11.27

%

 

 

9.81

%

 

 

10.23

%

Return on average tangible common equity

 

 

14.38

%

 

 

18.15

%

 

 

16.11

%

 

 

13.72

%

 

 

14.41

%

Tangible common equity ratio (c)

 

 

8.36

%

 

 

8.02

%

 

 

7.67

%

 

 

7.76

%

 

 

7.80

%

Net interest margin (TE)

 

 

3.46

%

 

 

3.39

%

 

 

3.36

%

 

 

3.40

%

 

 

3.37

%

Average loan/deposit ratio

 

 

87.08

%

 

 

88.09

%

 

 

88.39

%

 

 

86.84

%

 

 

86.32

%

Allowance for loan losses as a percent of period-end loans

 

 

0.97

%

 

 

0.97

%

 

 

1.10

%

 

 

1.11

%

 

 

1.10

%

Annualized net charge-offs to average loans

 

 

0.36

%

 

 

0.56

%

 

 

0.14

%

 

 

0.11

%

 

 

0.26

%

Allowance for loan losses to nonperforming loans + accruing loans 90 days past due

 

 

56.81

%

 

 

58.60

%

 

 

55.25

%

 

 

53.35

%

 

 

46.37

%

Select performance measures excluding nonoperating items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings per share - diluted (d)

 

$

1.00

 

 

$

1.12

 

 

$

1.01

 

 

$

0.96

 

 

$

0.90

 

Return on average assets - operating

 

 

1.24

%

 

 

1.37

%

 

 

1.24

%

 

 

1.22

%

 

 

1.17

%

Return on average common equity - operating

 

 

11.33

%

 

 

12.95

%

 

 

11.78

%

 

 

11.54

%

 

 

11.05

%

Return on average tangible common equity - operating

 

 

15.83

%

 

 

18.43

%

 

 

16.84

%

 

 

16.12

%

 

 

15.56

%

Efficiency ratio (e)

 

 

58.10

%

 

 

58.03

%

 

 

58.11

%

 

 

57.40

%

 

 

57.51

%

Noninterest income as a percent of total revenue (TE) - operating

 

 

24.01

%

 

 

25.03

%

 

 

25.70

%

 

 

24.20

%

 

 

24.33

%

FTE headcount

 

 

3,885

 

 

 

3,933

 

 

 

3,858

 

 

 

3,780

 

 

 

3,775

 

7


 

 

(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)

Refer to Appendix A for a reconciliation of this non-GAAP measure.

(e)

The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased   intangibles and nonoperating items.

 

8


 

HANCOCK WHITNEY CORPORATION

 

INCOME STATEMENT

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(dollars in thousands, except per share data)

 

3/31/2019

 

 

12/31/2018

 

 

9/30/2018

 

 

6/30/2018

 

 

3/31/2018

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

276,283

 

 

$

271,357

 

 

$

263,212

 

 

$

252,304

 

 

$

241,395

 

Interest income (TE) (f)

 

 

280,107

 

 

 

275,395

 

 

 

267,307

 

 

 

256,385

 

 

 

245,358

 

Interest expense

 

 

57,029

 

 

 

53,924

 

 

 

49,018

 

 

 

40,757

 

 

 

35,731

 

Net interest income (TE)

 

 

223,078

 

 

 

221,471

 

 

 

218,289

 

 

 

215,628

 

 

 

209,627

 

Provision for loan losses

 

 

18,043

 

 

 

8,100

 

 

 

6,872

 

 

 

8,891

 

 

 

12,253

 

Noninterest income

 

 

70,503

 

 

 

74,538

 

 

 

75,518

 

 

 

68,832

 

 

 

66,252

 

Noninterest expense

 

 

175,700

 

 

 

179,366

 

 

 

181,187

 

 

 

184,402

 

 

 

170,791

 

Income before income taxes

 

 

96,014

 

 

 

104,505

 

 

 

101,653

 

 

 

87,086

 

 

 

88,872

 

Income tax expense

 

 

16,850

 

 

 

8,265

 

 

 

17,775

 

 

 

15,909

 

 

 

16,397

 

Net income

 

$

79,164

 

 

$

96,240

 

 

$

83,878

 

 

$

71,177

 

 

$

72,475

 

  Earnings excluding nonoperating items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

79,164

 

 

$

96,240

 

 

$

83,878

 

 

$

71,177

 

 

$

72,475

 

Provision for loan losses for alleged fraud (g)

 

 

10,084

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonoperating noninterest income

 

 

 

 

 

(604

)

 

 

 

 

 

 

 

 

1,145

 

Nonoperating noninterest expense

 

 

 

 

 

2,458

 

 

 

4,827

 

 

 

15,805

 

 

 

5,853

 

Income tax benefit

 

 

(2,118

)

 

 

(389

)

 

 

(1,014

)

 

 

(3,319

)

 

 

(1,216

)

Nonoperating items, net of income tax benefit

 

 

7,966

 

 

 

1,465

 

 

 

3,813

 

 

 

12,486

 

 

 

5,782

 

Operating earnings

 

$

87,130

 

 

$

97,705

 

 

$

87,691

 

 

$

83,663

 

 

$

78,257

 

PROVISION FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses excluding alleged fraud

 

$

7,959

 

 

$

8,100

 

 

$

6,872

 

 

$

8,891

 

 

$

12,253

 

Provision for loan losses for alleged fraud (g)

 

 

10,084

 

 

 

 

 

 

 

 

 

 

 

 

 

Total provision for loan losses

 

$

18,043

 

 

$

8,100

 

 

$

6,872

 

 

$

8,891

 

 

$

12,253

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

20,367

 

 

$

21,466

 

 

$

21,377

 

 

$

20,981

 

 

$

21,448

 

Trust fees

 

 

15,124

 

 

 

15,762

 

 

 

16,738

 

 

 

11,653

 

 

 

11,335

 

Bank card and ATM fees

 

 

15,290

 

 

 

15,656

 

 

 

14,862

 

 

 

15,464

 

 

 

14,458

 

Investment and insurance commissions, and annuity fees

 

 

6,528

 

 

 

6,307

 

 

 

6,652

 

 

 

6,264

 

 

 

6,125

 

Secondary mortgage market operations

 

 

3,726

 

 

 

3,933

 

 

 

4,333

 

 

 

3,965

 

 

 

3,401

 

Other income

 

 

9,468

 

 

 

10,810

 

 

 

11,556

 

 

 

10,505

 

 

 

10,630

 

Total operating noninterest income

 

 

70,503

 

 

 

73,934

 

 

 

75,518

 

 

 

68,832

 

 

 

67,397

 

Nonoperating income

 

 

 

 

 

604

 

 

 

 

 

 

 

 

 

(1,145

)

Total noninterest income

 

$

70,503

 

 

$

74,538

 

 

$

75,518

 

 

$

68,832

 

 

$

66,252

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

$

103,698

 

 

$

104,908

 

 

$

101,173

 

 

$

96,835

 

 

$

96,366

 

Net occupancy and equipment expense

 

 

16,663

 

 

 

15,980

 

 

 

15,452

 

 

 

15,340

 

 

 

14,436

 

Other real estate (income) expense

 

 

(991

)

 

 

(2,924

)

 

 

15

 

 

 

(289

)

 

 

210

 

Other operating expense

 

 

51,192

 

 

 

53,472

 

 

 

54,082

 

 

 

51,389

 

 

 

48,308

 

Amortization of intangibles

 

 

5,138

 

 

 

5,472

 

 

 

5,638

 

 

 

5,322

 

 

 

5,618

 

Total operating expense

 

 

175,700

 

 

 

176,908

 

 

 

176,360

 

 

 

168,597

 

 

 

164,938

 

Nonoperating expense

 

 

 

 

 

2,458

 

 

 

4,827

 

 

 

15,805

 

 

 

5,853

 

Total noninterest expense

 

$

175,700

 

 

$

179,366

 

 

$

181,187

 

 

$

184,402

 

 

$

170,791

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.91

 

 

$

1.11

 

 

$

0.96

 

 

$

0.82

 

 

$

0.83

 

Diluted

 

 

0.91

 

 

 

1.10

 

 

 

0.96

 

 

 

0.82

 

 

 

0.83

 

Operating earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted (h)

 

$

1.00

 

 

$

1.12

 

 

$

1.01

 

 

$

0.96

 

 

$

0.90

 

 

9


 

(f)

Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.

(g)

Provision for loan loss recorded in response to the circumstances surrounding the bankruptcy filing and alleged fraudulent activities of one borrower, DC Solar. Refer to Note 21 of our Annual Report on Form 10-K dated December 31, 2018 for additional information.

(h)

Refer to Appendix A for a reconciliation of this non-GAAP measure.

10


 

HANCOCK WHITNEY CORPORATION

PERIOD-END BALANCE SHEET

(Unaudited)

 

(dollars in thousands)

 

3/31/2019

 

 

12/31/2018

 

 

9/30/2018

 

 

6/30/2018

 

 

3/31/2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

8,656,326

 

 

$

8,620,601

 

 

$

8,438,884

 

 

$

8,410,961

 

 

$

8,336,222

 

Commercial real estate - owner occupied

 

 

2,515,428

 

 

 

2,457,748

 

 

 

2,300,271

 

 

 

2,233,794

 

 

 

2,185,543

 

Total commercial and industrial loans

 

 

11,171,754

 

 

 

11,078,349

 

 

 

10,739,155

 

 

 

10,644,755

 

 

 

10,521,765

 

Commercial real estate - income

   producing

 

 

2,563,394

 

 

 

2,341,779

 

 

 

2,311,699

 

 

 

2,342,192

 

 

 

2,394,862

 

Construction and land development loans

 

 

1,340,067

 

 

 

1,548,335

 

 

 

1,523,419

 

 

 

1,515,233

 

 

 

1,413,878

 

Residential mortgage loans

 

 

2,933,251

 

 

 

2,910,081

 

 

 

2,846,916

 

 

 

2,780,359

 

 

 

2,732,821

 

Consumer loans

 

 

2,104,372

 

 

 

2,147,867

 

 

 

2,122,528

 

 

 

2,088,378

 

 

 

2,029,178

 

Total loans

 

 

20,112,838

 

 

 

20,026,411

 

 

 

19,543,717

 

 

 

19,370,917

 

 

 

19,092,504

 

Loans held for sale

 

 

27,437

 

 

 

28,150

 

 

 

29,043

 

 

 

36,047

 

 

 

21,827

 

Securities

 

 

5,577,522

 

 

 

5,670,584

 

 

 

5,987,447

 

 

 

6,113,873

 

 

 

5,930,076

 

Short-term investments

 

 

163,762

 

 

 

111,094

 

 

 

108,074

 

 

 

104,210

 

 

 

61,541

 

Earning assets

 

 

25,881,559

 

 

 

25,836,239

 

 

 

25,668,281

 

 

 

25,625,047

 

 

 

25,105,948

 

Allowance for loan losses

 

 

(194,688

)

 

 

(194,514

)

 

 

(214,550

)

 

 

(214,530

)

 

 

(210,713

)

Goodwill and other intangible assets

 

 

883,097

 

 

 

887,123

 

 

 

892,595

 

 

 

825,223

 

 

 

830,544

 

Other assets

 

 

1,920,263

 

 

 

1,707,059

 

 

 

1,751,849

 

 

 

1,689,707

 

 

 

1,571,558

 

Total assets

 

$

28,490,231

 

 

$

28,235,907

 

 

$

28,098,175

 

 

$

27,925,447

 

 

$

27,297,337

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

8,158,658

 

 

$

8,499,027

 

 

$

8,140,530

 

 

$

8,165,796

 

 

$

8,230,060

 

Interest-bearing transaction and savings

   deposits

 

 

8,224,203

 

 

 

8,000,093

 

 

 

7,972,417

 

 

 

7,711,542

 

 

 

8,058,793

 

Interest-bearing public fund deposits

 

 

3,229,589

 

 

 

3,006,516

 

 

 

2,613,858

 

 

 

2,854,839

 

 

 

3,108,008

 

Time deposits

 

 

3,767,844

 

 

 

3,644,549

 

 

 

3,691,002

 

 

 

3,503,161

 

 

 

3,088,861

 

Total interest-bearing deposits

 

 

15,221,636

 

 

 

14,651,158

 

 

 

14,277,277

 

 

 

14,069,542

 

 

 

14,255,662

 

Total deposits

 

 

23,380,294

 

 

 

23,150,185

 

 

 

22,417,807

 

 

 

22,235,338

 

 

 

22,485,722

 

Short-term borrowings

 

 

1,388,735

 

 

 

1,589,128

 

 

 

2,276,647

 

 

 

2,314,190

 

 

 

1,452,097

 

Long-term debt

 

 

224,962

 

 

 

224,993

 

 

 

215,912

 

 

 

266,009

 

 

 

300,443

 

Other liabilities

 

 

305,665

 

 

 

190,261

 

 

 

208,931

 

 

 

180,355

 

 

 

163,037

 

Total liabilities

 

 

25,299,656

 

 

 

25,154,567

 

 

 

25,119,297

 

 

 

24,995,892

 

 

 

24,401,299

 

COMMON STOCKHOLDERS'

   EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock net of treasury and capital surplus

 

 

2,023,864

 

 

 

2,018,457

 

 

 

2,028,160

 

 

 

2,022,258

 

 

 

2,016,405

 

Retained earnings

 

 

1,299,220

 

 

 

1,243,592

 

 

 

1,170,897

 

 

 

1,110,506

 

 

 

1,060,182

 

Accumulated other comprehensive income

 

 

(132,509

)

 

 

(180,709

)

 

 

(220,179

)

 

 

(203,209

)

 

 

(180,549

)

Total common stockholders' equity

 

 

3,190,575

 

 

 

3,081,340

 

 

 

2,978,878

 

 

 

2,929,555

 

 

 

2,896,038

 

Total liabilities & stockholders' equity

 

$

28,490,231

 

 

$

28,235,907

 

 

$

28,098,175

 

 

$

27,925,447

 

 

$

27,297,337

 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

2,307,478

 

 

$

2,194,217

 

 

$

2,086,283

 

 

$

2,104,332

 

 

$

2,065,494

 

Tier 1 capital (i)

 

 

2,456,823

 

 

 

2,391,762

 

 

 

2,323,845

 

 

 

2,324,691

 

 

 

2,261,741

 

Common equity as a percentage of total assets

 

 

11.21

%

 

 

10.91

%

 

 

10.60

%

 

 

10.49

%

 

 

10.61

%

Tangible common equity ratio

 

 

8.36

%

 

 

8.02

%

 

 

7.67

%

 

 

7.76

%

 

 

7.80

%

Leverage (Tier 1) ratio (i)

 

 

8.85

%

 

 

8.67

%

 

 

8.50

%

 

 

8.66

%

 

 

8.51

%

Tier 1 risk-based capital ratio (i)

 

 

10.65

%

 

 

10.48

%

 

 

10.36

%

 

 

10.48

%

 

 

10.35

%

Total risk-based capital ratio (i)

 

 

12.14

%

 

 

11.99

%

 

 

11.98

%

 

 

12.12

%

 

 

12.00

%

 

(i)

Estimated for most recent period-end.

11


 

HANCOCK WHITNEY CORPORATION

AVERAGE BALANCE SHEET

(Unaudited)

 

 

Three Months Ended

 

(in thousands)

 

3/31/2019

 

 

12/31/2018

 

 

3/31/2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

8,659,559

 

 

$

8,580,415

 

 

$

8,290,955

 

Commercial real estate - owner occupied

 

 

2,509,152

 

 

 

2,376,338

 

 

 

2,160,596

 

Total commercial and industrial loans

 

 

11,168,711

 

 

 

10,956,753

 

 

 

10,451,551

 

Commercial real estate - income producing

 

 

2,469,710

 

 

 

2,339,078

 

 

 

2,383,906

 

Construction and land development loans

 

 

1,423,714

 

 

 

1,499,044

 

 

 

1,388,913

 

Residential mortgage loans

 

 

2,942,396

 

 

 

2,888,261

 

 

 

2,718,413

 

Consumer loans

 

 

2,122,417

 

 

 

2,134,593

 

 

 

2,085,707

 

Total loans

 

 

20,126,948

 

 

 

19,817,729

 

 

 

19,028,490

 

Loans held for sale

 

 

20,618

 

 

 

22,187

 

 

 

32,194

 

Securities (j)

 

 

5,656,689

 

 

 

5,965,461

 

 

 

5,897,290

 

Short-term investments

 

 

216,192

 

 

 

205,806

 

 

 

148,309

 

Earning assets

 

 

26,020,447

 

 

 

26,011,183

 

 

 

25,106,283

 

Allowance for loan losses

 

 

(196,384

)

 

 

(213,902

)

 

 

(216,796

)

Goodwill and other intangible assets

 

 

885,381

 

 

 

889,820

 

 

 

833,269

 

Other assets

 

 

1,742,104

 

 

 

1,572,862

 

 

 

1,514,321

 

Total assets

 

$

28,451,548

 

 

$

28,259,963

 

 

$

27,237,077

 

LIABILITIES AND COMMON STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

8,227,698

 

 

$

8,260,487

 

 

$

7,951,121

 

Interest-bearing transaction and savings deposits

 

 

8,082,584

 

 

 

7,940,670

 

 

 

8,043,176

 

Interest-bearing public fund deposits

 

 

3,060,565

 

 

 

2,680,837

 

 

 

3,070,079

 

Time deposits

 

 

3,743,292

 

 

 

3,616,151

 

 

 

2,979,043

 

Total interest-bearing deposits

 

 

14,886,441

 

 

 

14,237,658

 

 

 

14,092,298

 

Total deposits

 

 

23,114,139

 

 

 

22,498,145

 

 

 

22,043,419

 

Short-term borrowings

 

 

1,684,904

 

 

 

2,330,280

 

 

 

1,823,033

 

Long-term debt

 

 

224,966

 

 

 

222,339

 

 

 

305,117

 

Other liabilities

 

 

309,488

 

 

 

215,934

 

 

 

192,695

 

Common stockholders' equity

 

 

3,118,051

 

 

 

2,993,265

 

 

 

2,872,813

 

Total liabilities & stockholders' equity

 

$

28,451,548

 

 

$

28,259,963

 

 

$

27,237,077

 

 

(j)

Average securities does not include unrealized holding gains/losses on available for sale securities.

12


 

HANCOCK WHITNEY CORPORATION

AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY

(Unaudited)

 

  

 

Three Months Ended

 

 

 

3/31/2019

 

 

12/31/2018

 

 

3/31/2018

 

(dollars in millions)

 

Average

Balance

 

 

Interest

 

 

Rate

 

 

Average

Balance

 

 

Interest

 

 

Rate

 

 

Average

Balance

 

 

Interest

 

 

Rate

 

AVERAGE EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans (TE) (k)

 

$

15,062.1

 

 

$

180.5

 

 

 

4.86

%

 

$

14,794.9

 

 

$

172.8

 

 

 

4.64

%

 

$

14,224.4

 

 

$

150.9

 

 

 

4.30

%

Residential mortgage loans

 

 

2,942.4

 

 

 

31.1

 

 

 

4.23

%

 

 

2,888.2

 

 

 

29.2

 

 

 

4.04

%

 

 

2,718.4

 

 

 

27.9

 

 

 

4.10

%

Consumer loans

 

 

2,122.4

 

 

 

29.9

 

 

 

5.72

%

 

 

2,134.6

 

 

 

32.5

 

 

 

6.04

%

 

 

2,085.7

 

 

 

29.0

 

 

 

5.64

%

Loan fees & late charges

 

 

 

 

 

(0.9

)

 

 

0.00

%

 

 

 

 

 

0.6

 

 

 

0.00

%

 

 

 

 

 

0.5

 

 

 

0.00

%

Total loans (TE) (l)

 

 

20,126.9

 

 

 

240.6

 

 

 

4.84

%

 

 

19,817.7

 

 

 

235.1

 

 

 

4.71

%

 

 

19,028.5

 

 

 

208.3

 

 

 

4.43

%

Loans held for sale

 

 

20.6

 

 

 

0.3

 

 

 

4.92

%

 

 

22.2

 

 

 

0.2

 

 

 

2.91

%

 

 

32.2

 

 

 

0.2

 

 

 

2.75

%

US Treasury and government

   agency securities

 

 

123.8

 

 

 

0.7

 

 

 

2.25

%

 

 

131.8

 

 

 

0.8

 

 

 

2.23

%

 

 

148.4

 

 

 

0.8

 

 

 

2.21

%

CMOs and mortgage backed securities

 

 

4,599.4

 

 

 

29.9

 

 

 

2.60

%

 

 

4,896.2

 

 

 

30.9

 

 

 

2.53

%

 

 

4,785.3

 

 

 

27.9

 

 

 

2.33

%

Municipals (TE)

 

 

930.0

 

 

 

7.4

 

 

 

3.17

%

 

 

933.9

 

 

 

7.4

 

 

 

3.17

%

 

 

960.1

 

 

 

7.6

 

 

 

3.18

%

Other securities

 

 

3.5

 

 

 

0.0

 

 

 

3.09

%

 

 

3.6

 

 

 

0.0

 

 

 

2.77

%

 

 

3.5

 

 

 

0.0

 

 

 

2.06

%

Total securities (TE) (m)

 

 

5,656.7

 

 

 

38.0

 

 

 

2.69

%

 

 

5,965.5

 

 

 

39.1

 

 

 

2.62

%

 

 

5,897.3

 

 

 

36.3

 

 

 

2.46

%

Total short-term investments

 

 

216.2

 

 

 

1.2

 

 

 

2.18

%

 

 

205.8

 

 

 

1.0

 

 

 

2.01

%

 

 

148.3

 

 

 

0.5

 

 

 

1.34

%

Average earning assets yield (TE)

 

$

26,020.4

 

 

$

280.1

 

 

 

4.35

%

 

$

26,011.2

 

 

$

275.4

 

 

 

4.21

%

 

$

25,106.3

 

 

$

245.3

 

 

 

3.95

%

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Interest-bearing transaction and

   savings deposits

 

$

8,082.6

 

 

$

14.7

 

 

 

0.74

%

 

$

7,940.7

 

 

$

12.4

 

 

 

0.62

%

 

$

8,043.2

 

 

$

9.1

 

 

 

0.46

%

Time deposits

 

 

3,743.3

 

 

 

18.0

 

 

 

1.95

%

 

 

3,616.2

 

 

 

16.6

 

 

 

1.82

%

 

 

2,979.0

 

 

 

9.7

 

 

 

1.32

%

Public funds

 

 

3,060.5

 

 

 

13.4

 

 

 

1.78

%

 

 

2,680.8

 

 

 

10.7

 

 

 

1.58

%

 

 

3,070.1

 

 

 

8.1

 

 

 

1.07

%

Total interest-bearing deposits

 

 

14,886.4

 

 

 

46.1

 

 

 

1.26

%

 

 

14,237.7

 

 

 

39.7

 

 

 

1.11

%

 

 

14,092.3

 

 

 

26.9

 

 

 

0.78

%

Short-term borrowings

 

 

1,684.9

 

 

 

8.1

 

 

 

1.92

%

 

 

2,330.3

 

 

 

11.5

 

 

 

1.98

%

 

 

1,823.1

 

 

 

5.4

 

 

 

1.17

%

Long-term debt

 

 

225.0

 

 

 

2.8

 

 

 

4.99

%

 

 

222.3

 

 

 

2.7

 

 

 

4.82

%

 

 

305.1

 

 

 

3.4

 

 

 

4.48

%

Total borrowings

 

 

1,909.9

 

 

 

10.9

 

 

 

2.30

%

 

 

2,552.6

 

 

 

14.2

 

 

 

2.21

%

 

 

2,128.2

 

 

 

8.8

 

 

 

1.66

%

Total interest-bearing liabilities cost

 

 

16,796.3

 

 

 

57.0

 

 

 

1.38

%

 

 

16,790.3

 

 

 

53.9

 

 

 

1.27

%

 

 

16,220.5

 

 

 

35.7

 

 

 

0.89

%

Net interest-free funding sources

 

 

9,224.1

 

 

 

 

 

 

 

 

 

 

 

9,220.9

 

 

 

 

 

 

 

 

 

 

 

8,885.8

 

 

 

 

 

 

 

 

 

Total cost of funds

 

 

26,020.4

 

 

 

57.0

 

 

 

0.89

%

 

 

26,011.2

 

 

 

53.9

 

 

 

0.82

%

 

 

25,106.3

 

 

 

35.7

 

 

 

0.58

%

Net Interest Spread (TE)

 

 

 

 

 

$

223.1

 

 

 

2.97

%

 

 

 

 

 

$

221.5

 

 

 

2.94

%

 

 

 

 

 

$

209.6

 

 

 

3.05

%

Net Interest Margin (TE)

 

$

26,020.4

 

 

$

223.1

 

 

 

3.46

%

 

$

26,011.2

 

 

$

221.5

 

 

 

3.39

%

 

$

25,106.3

 

 

$

209.6

 

 

 

3.37

%

 

(k)

Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.

(l)

Includes nonaccrual loans.

(m)

Average securities does not include unrealized holding gains/losses on available for sale securities.

13


 

HANCOCK WHITNEY CORPORATION

ASSET QUALITY INFORMATION

(Unaudited)

 

 

Three Months Ended

 

(dollars in thousands)

 

3/31/2019

 

 

12/31/2018

 

 

3/31/2018

 

Nonaccrual loans (n)

 

$

204,831

 

 

$

187,295

 

 

$

275,179

 

Restructured loans - still accruing

 

 

117,578

 

 

 

139,042

 

 

 

166,520

 

Total nonperforming loans

 

 

322,409

 

 

 

326,337

 

 

 

441,699

 

ORE and foreclosed assets

 

 

27,148

 

 

 

26,270

 

 

 

26,630

 

Total nonperforming assets

 

$

349,557

 

 

$

352,607

 

 

$

468,329

 

Nonperforming assets as a percent of loans,

   ORE and foreclosed assets

 

 

1.74

%

 

 

1.76

%

 

 

2.45

%

Accruing loans 90 days past due (o)

 

$

20,308

 

 

$

5,589

 

 

$

12,724

 

Accruing loans 90 days past due as a percent

   of loans

 

 

0.10

%

 

 

0.03

%

 

 

0.07

%

Nonperforming assets + accruing loans 90

   days past due to loans, ORE and

   foreclosed assets

 

 

1.84

%

 

 

1.79

%

 

 

2.52

%

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

194,514

 

 

$

214,550

 

 

$

217,308

 

Provision for loan losses

 

 

18,043

 

 

 

8,100

 

 

 

12,253

 

Decrease in allowance as a result of sale of

   subsidiary

 

 

 

 

 

 

 

 

(6,648

)

Charge-offs

 

 

(20,991

)

 

 

(30,809

)

 

 

(18,436

)

Recoveries

 

 

3,122

 

 

 

2,673

 

 

 

6,236

 

Net charge-offs

 

 

(17,869

)

 

 

(28,136

)

 

 

(12,200

)

Ending Balance

 

$

194,688

 

 

$

194,514

 

 

$

210,713

 

Allowance for loan losses as a percent of

   period-end loans

 

 

0.97

%

 

 

0.97

%

 

 

1.10

%

Allowance for loan losses to nonperforming

   loans + accruing loans 90 days past due

 

 

56.81

%

 

 

58.60

%

 

 

46.37

%

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

14,398

 

 

$

24,253

 

 

$

5,870

 

Residential mortgage loans

 

 

244

 

 

 

(296

)

 

 

76

 

Consumer loans

 

 

3,227

 

 

 

4,179

 

 

 

6,254

 

Total net charge-offs

 

$

17,869

 

 

$

28,136

 

 

$

12,200

 

Net charge-offs (recoveries) as a percentage

   of average loans

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

0.39

%

 

 

0.65

%

 

 

0.17

%

Residential mortgage loans

 

 

0.03

%

 

 

(0.04

)%

 

 

0.01

%

Consumer loans

 

 

0.62

%

 

 

0.78

%

 

 

1.22

%

Total net charge-offs as a percentage of

   average loans

 

 

0.36

%

 

 

0.56

%

 

 

0.26

%

 

(n)

Included in nonaccrual loans are nonaccruing restructured loans totaling $105.9 million, $85.5 million and $118.0 million at 3/31/2019, 12/31/2018 and 3/31/2018, respectively. Nonaccrual loans and accruing loans past due 90 days or more do not include purchased credit impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.

(o)

Excludes 90+ accruing troubled debt restructured loans already reflected in total nonperforming loans of $1.5 million, $8.7 million and $13.7 million as of 3/31/2019, 12/31/2018 and 3/31/2018, respectively.

14


 

HANCOCK WHITNEY CORPORATION

ASSET QUALITY INFORMATION

(Unaudited)

 

 

Three Months Ended

 

(dollars in thousands)

 

3/31/2019

 

 

12/31/2018

 

 

9/30/2018

 

 

6/30/2018

 

 

3/31/2018

 

Nonaccrual loans (n)

 

$

204,831

 

 

$

187,295

 

 

$

201,646

 

 

$

241,681

 

 

$

275,179

 

Restructured loans - still accruing

 

 

117,578

 

 

 

139,042

 

 

 

162,189

 

 

 

152,507

 

 

 

166,520

 

Total nonperforming loans

 

 

322,409

 

 

 

326,337

 

 

 

363,835

 

 

 

394,188

 

 

 

441,699

 

ORE and foreclosed assets

 

 

27,148

 

 

 

26,270

 

 

 

27,475

 

 

 

22,342

 

 

 

26,630

 

Total nonperforming assets

 

$

349,557

 

 

$

352,607

 

 

$

391,310

 

 

$

416,530

 

 

$

468,329

 

Nonperforming assets as a percent of

   loans, ORE and foreclosed assets

 

 

1.74

%

 

 

1.76

%

 

 

2.00

%

 

 

2.15

%

 

 

2.45

%

Accruing loans 90 days past due (o)

 

$

20,308

 

 

$

5,589

 

 

$

24,460

 

 

$

7,941

 

 

$

12,724

 

Accruing loans 90 days past due as a

   percent of loans

 

 

0.10

%

 

 

0.03

%

 

 

0.13

%

 

 

0.04

%

 

 

0.07

%

Nonperforming assets + accruing

   loans 90 days past due to loans,

   ORE and foreclosed assets

 

 

1.84

%

 

 

1.79

%

 

 

2.12

%

 

 

2.19

%

 

 

2.52

%

Allowance for loan losses

 

$

194,688

 

 

$

194,514

 

 

$

214,550

 

 

$

214,530

 

 

$

210,713

 

Allowance for loan losses as

   a percentage of period-end loans

 

 

0.97

%

 

 

0.97

%

 

 

1.10

%

 

 

1.11

%

 

 

1.10

%

Allowance for loan losses to

   nonperforming loans + accruing

   loans 90 days past due

 

 

56.81

%

 

 

58.60

%

 

 

55.25

%

 

 

53.35

%

 

 

46.37

%

Provision for loan losses

 

 

18,043

 

 

 

8,100

 

 

 

6,872

 

 

 

8,891

 

 

$

12,253

 

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

14,398

 

 

$

24,253

 

 

$

3,205

 

 

$

1,749

 

 

$

5,870

 

Residential mortgage loans

 

 

244

 

 

 

(296

)

 

 

(1,055

)

 

 

(290

)

 

 

76

 

Consumer loans

 

 

3,227

 

 

 

4,179

 

 

 

4,702

 

 

 

3,615

 

 

 

6,254

 

Total net charge-offs

 

$

17,869

 

 

$

28,136

 

 

$

6,852

 

 

$

5,074

 

 

$

12,200

 

Net charge-offs (recoveries) as a

   percentage of average loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

0.39

%

 

 

0.65

%

 

 

0.09

%

 

 

0.05

%

 

 

0.17

%

Residential mortgage loans

 

 

0.03

%

 

 

(0.04

)%

 

 

(0.15

)%

 

 

(0.04

)%

 

 

0.01

%

Consumer loans

 

 

0.62

%

 

 

0.78

%

 

 

0.89

%

 

 

0.70

%

 

 

1.22

%

Total net charge-offs as a

   percentage of average loans

 

 

0.36

%

 

 

0.56

%

 

 

0.14

%

 

 

0.11

%

 

 

0.26

%

AVERAGE LOANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

15,062,135

 

 

$

14,794,875

 

 

$

14,542,281

 

 

$

14,380,941

 

 

$

14,224,370

 

Residential mortgage loans

 

 

2,942,396

 

 

 

2,888,261

 

 

 

2,816,151

 

 

 

2,754,292

 

 

 

2,718,413

 

Consumer loans

 

 

2,122,417

 

 

 

2,134,593

 

 

 

2,106,207

 

 

 

2,058,001

 

 

 

2,085,707

 

Total average loans

 

$

20,126,948

 

 

$

19,817,729

 

 

$

19,464,639

 

 

$

19,193,234

 

 

$

19,028,490

 

 

(n)

Included in nonaccrual loans are nonaccruing restructured loans totaling $105.9 million, $85.5 million, $92.7 million, $98.8 million and $118.0 million at 3/31/2019, 12/31/2018, 9/30/2018, 6/30/2018 and 3/31/2018, respectively. Nonaccrual loans and accruing loans past due 90 days or more do not include purchased credit impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.

(o)

Excludes 90+ accruing troubled debt restructured loans already reflected in total nonperforming loans of $1.5 million, $8.7 million, $6.1 million, $1.9 million, and $13.7 million as of 3/31/2019, 12/31/2018, 9/30/2018, 6/30/2018, and 3/31/2018, respectively.

15


 

HANCOCK WHITNEY CORPORATION

Appendix A to the Earnings Release

Reconciliation of Non-GAAP Measures

 

OPERATING REVENUE (TE) AND OPERATING PRE-PROVISION NET REVENUE (TE)

 

 

Three Months Ended

 

(in thousands)

 

3/31/2019

 

 

12/31/2018

 

 

9/30/2018

 

 

6/30/2018

 

 

3/31/2018

 

Net interest income

 

$

219,254

 

 

$

217,433

 

 

$

214,194

 

 

$

211,547

 

 

$

205,664

 

Noninterest income

 

 

70,503

 

 

 

74,538

 

 

 

75,518

 

 

 

68,832

 

 

 

66,252

 

Total revenue

 

$

289,757

 

 

$

291,971

 

 

$

289,712

 

 

$

280,379

 

 

$

271,916

 

Taxable equivalent adjustment (p)

 

 

3,824

 

 

 

4,038

 

 

 

4,095

 

 

 

4,081

 

 

 

3,963

 

Nonoperating revenue

 

 

 

 

 

(604

)

 

 

 

 

 

 

 

 

1,145

 

Operating revenue (TE)

 

$

293,581

 

 

$

295,405

 

 

$

293,807

 

 

$

284,460

 

 

$

277,024

 

Noninterest noninterest expense

 

 

(175,700

)

 

 

(179,366

)

 

 

(181,187

)

 

 

(184,402

)

 

 

(170,791

)

Nonoperating expense

 

 

 

 

 

2,458

 

 

 

4,827

 

 

 

15,805

 

 

 

5,853

 

Operating pre-provision net

   revenue (TE)

 

$

117,881

 

 

$

118,497

 

 

$

117,447

 

 

$

115,863

 

 

$

112,086

 

 

OPERATING EARNINGS PER SHARE - DILUTED

 

 

Three Months Ended

 

(in thousands, except per share amounts)

 

3/31/2019

 

 

12/31/2018

 

 

9/30/2018

 

 

6/30/2018

 

 

3/31/2018

 

Net Income

 

$

79,164

 

 

$

96,240

 

 

$

83,878

 

 

$

71,177

 

 

$

72,475

 

Net income allocated to

   participating securities

 

 

(1,337

)

 

 

(1,691

)

 

 

(1,544

)

 

 

(1,328

)

 

 

(1,366

)

Net income available to

   common shareholders

 

 

77,827

 

 

 

94,549

 

 

 

82,334

 

 

 

69,849

 

 

 

71,109

 

Nonoperating items, net of

   income tax

 

 

7,966

 

 

 

1,465

 

 

 

3,813

 

 

 

12,486

 

 

 

5,782

 

Nonoperating items allocated to participating securities

 

 

(134

)

 

 

(26

)

 

 

(71

)

 

 

(233

)

 

 

(109

)

Operating earnings available to

   common shareholders

 

$

85,659

 

 

$

95,988

 

 

$

86,076

 

 

$

82,102

 

 

$

76,782

 

Weighted average common

   shares - diluted

 

 

85,800

 

 

 

85,677

 

 

 

85,539

 

 

 

85,483

 

 

 

85,423

 

Earnings per share - diluted

 

$

0.91

 

 

$

1.10

 

 

$

0.96

 

 

$

0.82

 

 

$

0.83

 

Operating earnings per

   share - diluted

 

$

1.00

 

 

$

1.12

 

 

$

1.01

 

 

$

0.96

 

 

$

0.90

 

 

(p)

Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.

16