EX-99.1 2 hwc-ex991_7.htm EX-99.1 hwc-ex991_7.htm

 

Exhibit 99.1

FOR IMMEDIATE RELEASE

July 16, 2019

For more information

Trisha Voltz Carlson, EVP, Investor Relations Manager

504.299.5208 or trisha.carlson@hancockwhitney.com

 

 

Hancock Whitney reports second quarter 2019 EPS of $1.01

 

GULFPORT, Miss. (July 16, 2019) — Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the second quarter of 2019. Net income for the second quarter of 2019 was $88.3 million, or $1.01 per diluted common share (EPS), compared to $79.2 million, or $.91 EPS, in the first quarter of 2019 and $71.2 million, or $.82 EPS, in the second quarter of 2018. The second quarter of 2019 did not include any nonoperating items. The first quarter of 2019 included a $10.1 million ($.09 per share after-tax impact) provision for loan losses related to the alleged DC Solar fraud, and the second quarter of 2018 included $15.8 million ($.14 per share impact) of nonoperating items related to the brand consolidation project, the Capital One trust and asset management purchase, the restructuring of a portion of our BOLI investments, and other miscellaneous items.

 

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

 

Net income of $88.3 million, or $1.01 per diluted share, up $9.1 million, or $.10 per share

 

Loans increased $63 million from March 31, 2019; reflects $45 million mortgage loan sale during quarter

 

Energy loans declined $55 million to just under 5% of total loans

 

Operating leverage increased approximately $1.4 million linked-quarter; revenue up $9.3 million, operating expense up $7.9 million

 

Criticized commercial loans declined $11 million, or 2% ($6 million energy, $5 million nonenergy)

 

NIM decreased by 1 basis point (bp) to 3.45%

 

TCE ratio up 39 bps to 8.75%

 

Announced MidSouth Bancorp, Inc. (MSL) acquisition on April 30, 2019

 

“Results for the second quarter were solid despite a more challenging rate environment”, said John M. Hairston, President and CEO. “We continue our focus on improving yield and asset quality, while building capital and working to close our transaction with MidSouth. We recognize the near term environment creates headwinds to achieve previously determined corporate strategic objectives (CSOs); however, we remain focused on achieving those objectives as scheduled. We will continue adopting strategies that we believe are best for clients, associates, and to enhance shareholder value.”

 

 

 

1

 


 

Hancock Whitney reports second quarter 2019 financial results

July 16, 2019

 

Loans

Total loans at June 30, 2019 were $20.2 billion, up approximately $63 million, or less than 1%, linked-quarter. Net loan growth during the quarter continues to be diversified across our regions with all regions reporting growth. Net loan growth for the quarter was lower than prior guidance primarily due to the impact from the sale of mortgage loans, previously anticipated paydowns, and net reductions in both healthcare and energy portfolios.

 

Average loans totaled $20.2 billion for the second quarter of 2019, up $23 million, or less than 1%, linked-quarter.

 

At June 30, 2019, loans to the energy industry totaled $1.0 billion, or just under 5.0% of total loans. The energy portfolio was down $55 million linked-quarter, and is comprised of credits to both the exploration and production (E&P) subsector and the support services subsector. We continued our focus on shifting the mix between subsectors to deemphasize the support services subsector. As of June 30, 2019, the energy portfolio was comprised of 53% RBL and midstream credits and 47% support services credits.

 

Deposits

Total deposits at June 30, 2019 were $23.2 billion, down $144 million, or 1%, from March 31, 2019. Average deposits for the second quarter of 2019 were $23.1 billion, up $23 million, or less than 1%, linked-quarter.

 

Noninterest-bearing demand deposits (DDAs) totaled $8.1 billion at June 30, 2019, down $44 million, or 1%, from March 31, 2019 and comprised 35% of total period-end deposits at June 30, 2019.

 

Interest-bearing transaction and savings deposits totaled $8.0 billion at the end of the second quarter of 2019, down $189 million, or 2%, from March 31, 2019. Time deposits of $3.9 billion were up $159 million, or 4%, while interest-bearing public fund deposits decreased $70 million, or 2%, to $3.2 billion. The net increase in time deposits reflects an increase in brokered CDs of $15 million and an increase of $144 million in retail CDs.

 

Asset Quality

Nonperforming assets (NPAs) totaled $338.6 million at June 30, 2019, down $11.0 million, or 3%, from March 31, 2019. During the second quarter of 2019, total nonperforming loans decreased approximately $11.3 million, while foreclosed and surplus real estate (ORE) and other foreclosed assets increased approximately $0.4 million. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 1.68% at June 30, 2019, down 6 bps from March 31, 2019.

 

The total allowance for loan and lease losses (ALLL) was $195.6 million at June 30, 2019, up $0.9 million, or less than 1%, from March 31, 2019. The allowance for credits in the energy portfolio totaled $31.5 million, or 3.1% of energy loans, at June 30, 2019, unchanged from March 31, 2019. The allowance for credits in the nonenergy portfolio totaled $164.1 million, or 0.86% of nonenergy loans, at June 30, 2019, up $0.9 million from $163.2 million, or 0.86% of nonenergy loans, at March 31, 2019. The ratio of the ALLL to period-end loans was 0.97% at June 30, 2019, unchanged from March 31, 2019.

 

Net charge-offs were $7.2 million, or 0.14% of average total loans on an annualized basis in the second quarter of 2019, down from $17.9 million, or 0.36% of average total loans in the first quarter of 2019. There

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Hancock Whitney reports second quarter 2019 financial results

July 16, 2019

 

were no energy charge-offs in the first half of 2019. During the second quarter of 2019, the company recorded a total provision for loan losses of $8.1 million, down from $18.0 million in the first quarter of 2019 which included $10.1 million related to the alleged DC Solar fraud.

 

Net Interest Income and Net Interest Margin (NIM)

Net interest income (TE) for the second quarter of 2019 was $223.6 million, up $0.5 million from the first quarter of 2019. The net interest margin (TE) was 3.45% for the second quarter of 2019, down 1 bp from the first quarter of 2019. The improvement in the net interest income was primarily due to one additional calendar day in the quarter and a recovery on a legacy Whitney CRE credit, offset by higher premium amortization and deposit costs. The slight decrease in the net interest margin was primarily attributable to higher CD renewal rates (2 bps), a change in the funding mix (1 bp) and higher prepayments on the bond portfolio (1 bp), almost fully offset by net interest recoveries (2 bps) and a favorable change in the earning asset mix (1 bp).

 

Average earning assets were $26.0 billion for the second quarter of 2019, down $27.6 million, or less than 1%, from the first quarter of 2019.

 

Noninterest Income

Noninterest income totaled $79.3 million for the second quarter of 2019, up $8.7 million, or 12%, from the first quarter of 2019.

 

Service charges on deposits totaled $20.7 million for the second quarter of 2019, up $0.4 million, or 2%, from the first quarter of 2019. Bank card and ATM fees totaled $16.6 million, up $1.3 million, or 9%, from the first quarter of 2019. The increase from the first quarter is primarily due to an additional calendar day in the quarter and increased card usage.

 

Trust fees totaled $15.9 million, up $0.8 million, or 5%, linked-quarter. The net increase from the first quarter is mainly related to one additional calendar day in the quarter and seasonal tax preparation fees.

 

Investment and annuity income and insurance fees totaled $6.6 million, up $0.1 million, or 1%, linked-quarter. Fees from secondary mortgage operations totaled $4.4 million for the second quarter of 2019, up $0.7 million, or 19%, linked-quarter. The increase is primarily due to higher activity in the second quarter of 2019. Other noninterest income totaled $15.0 million, up $5.5 million, or 58%, from the first quarter of 2019. The increase in other noninterest income includes an increase of $0.8 million from BOLI income, $2.8 million from derivative income, and $1.2 million from small business investment company (SBIC) income.

 

Noninterest Expense & Taxes

Noninterest expense for the second quarter of 2019 totaled $183.6 million, up $7.9 million, or 4%, from the first quarter of 2019.

 

Total personnel expense was $106.6 million in the second quarter of 2019, up $2.9 million, or 3%, from the first quarter of 2019. This increase is mainly related to an additional workday in the quarter and the full quarter impact of annual merit increases.

 

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Hancock Whitney reports second quarter 2019 financial results

July 16, 2019

 

Occupancy and equipment expense totaled $17.3 million in the second quarter of 2019, up $0.6 million, or 4%, from the first quarter of 2019. The increase is mostly related to property insurance in the second quarter.

 

Amortization of intangibles totaled $5.0 million for the second quarter of 2019, down $0.1 million, or 2%, linked-quarter.

 

Net ORE expense totaled $0.4 million in the second quarter of 2019, compared to ORE gains exceeding expenses by $1.0 million in the first quarter of 2019.

 

Other operating expense totaled $54.2 million in the second quarter of 2019, up $3.0 million, or 6%, from the first quarter of 2019. The increase includes $1.1 million in professional services related to our technology investments and $2.0 million of expenses related to the trust and asset management acquisition, MSL, and the relocation of the New Orleans regional headquarters and other miscellaneous expenses.

 

The effective income tax rate for the second quarter of 2019 was 18%. Management expects the tax rate in the third 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 June 30, 2019 totaled $3.3 billion, up $128 million, or 4%, from March 31, 2019. The tangible common equity (TCE) ratio was 8.75%, up 39 bps from March 31, 2019. 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, July 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 second 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 July 24, 2019 by dialing (855) 859-2056 or (404) 537-3406, passcode 1078739.  

 

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.

 

 

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Hancock Whitney reports second quarter 2019 financial results

July 16, 2019

 

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 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.

 

Important Cautionary Statement About Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements that we may make include statements regarding our expectations regarding our performance and financial condition, 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, 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 LIBOR benchmark, the consummation of our acquisition of MidSouth Bancorp, Inc. and its wholly-owned banking subsidiary MidSouth Bank, N.A. (collectively, “MidSouth”) and the  integration of MidSouth with Hancock Whitney, deposit trends, credit quality trends, changes in interest rates, 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,”

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Hancock Whitney reports second quarter 2019 financial results

July 16, 2019

 

“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, including among others:  the possibility that expected benefits of the proposed MidSouth transaction may not materialize in the timeframe expected or at all, or may be more costly to achieve; the proposed transaction may not be timely completed, if at all; that prior to the completion of the proposed transaction or thereafter, Hancock Whitney’s and MidSouth’s respective businesses may not perform as expected due to transaction-related uncertainty or other factors; that the parties are unable to successfully implement integration strategies related to the proposed transaction; that required regulatory, shareholder or other approvals for the merger or related transactions are not obtained or the conditions to the parties’ obligations to complete the merger are not satisfied in a timely manner or at all; reputational risks and the reaction of the companies’ shareholders, customers, employees or other constituents to the proposed transaction; and diversion of management time on merger-related matters. These risks, as well as other risks relating to the parties and the proposed transaction, will be more fully discussed in the Proxy Statement/Prospectus that will be included in the Registration Statement on Form S-4 that will be filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the Registration Statement will be, considered representative, no such lists should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. 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.

 

Important Additional Information and Where to Find It

This communication contains information regarding the proposed merger transaction between Hancock Whitney and MidSouth. In connection with the proposed merger, Hancock Whitney will file with the SEC a Registration Statement on Form S-4 that will include the Proxy Statement of MidSouth and a Prospectus of Hancock Whitney, as well as other relevant documents regarding the proposed transaction. A definitive Proxy Statement/Prospectus will be sent to MidSouth shareholders. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. MidSouth shareholders are urged to read the Registration Statement and the Proxy Statement/Prospectus when it becomes available, along with any other documents filed by Hancock Whitney and MidSouth with the SEC, and any amendments or supplements to these documents, because they will contain important information regarding the merger and the parties to the merger. A free copy of the Proxy Statement/Prospectus, as well as other filings containing information about Hancock Whitney and MidSouth, may be obtained at the SEC’s Internet site (http://www.sec.gov). You will also be able to obtain these documents, free of charge, from Hancock Whitney at www.hancockwhitney.com under the heading “SEC Filings” or from MidSouth at

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Hancock Whitney reports second quarter 2019 financial results

July 16, 2019

 

www.midsouthbank.com under the heading “SEC Filings”. Copies of the Proxy Statement/Prospectus can also be obtained, free of charge, by directing a request to Hancock Whitney Corporation, Hancock Whitney Plaza, 2510 14th Street, Gulfport, Mississippi 39501, Attention:  Investor Relations, by calling 504.299.5208, or by sending an e-mail to trisha.carlson@hancockwhitney.com, or by directing a request to MidSouth Bancorp, Inc., 102 Versailles Boulevard, Lafayette, Louisiana 70501, Attention:  Investor Relations, by calling 337.593.3143, or by sending an e-mail to lorraine.miller@midsouthbank.com.

 

Participants in the Solicitation

Hancock Whitney, MidSouth, and certain of their respective directors, executive officers and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Hancock Whitney’s directors and executive officers is available in its definitive proxy statement, which was filed with the SEC on March 12, 2019. Information regarding MidSouth’s directors and executive officers is available in its definitive proxy statement, which was filed with the SEC on April 17, 2018, and certain of its Current Reports on Form 8-K. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement/Prospectus and other relevant materials filed with the SEC. Free copies of this document may be obtained as described above under “Important Additional Information and Where to Find It.”

 

 

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HANCOCK WHITNEY CORPORATION

 

FINANCIAL HIGHLIGHTS

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

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

 

6/30/2019

 

 

3/31/2019

 

 

6/30/2018

 

 

6/30/2019

 

 

6/30/2018

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

219,868

 

 

$

219,254

 

 

$

211,547

 

 

$

439,122

 

 

$

417,211

 

Net interest income (TE) (a)

 

 

223,586

 

 

 

223,078

 

 

 

215,628

 

 

 

446,664

 

 

 

425,255

 

Provision for loan losses

 

 

8,088

 

 

 

18,043

 

 

 

8,891

 

 

 

26,131

 

 

 

21,144

 

Noninterest income

 

 

79,250

 

 

 

70,503

 

 

 

68,832

 

 

 

149,753

 

 

 

135,084

 

Noninterest expense

 

 

183,567

 

 

 

175,700

 

 

 

184,402

 

 

 

359,267

 

 

 

355,193

 

Income tax expense

 

 

19,186

 

 

 

16,850

 

 

 

15,909

 

 

 

36,036

 

 

 

32,306

 

Net income

 

$

88,277

 

 

$

79,164

 

 

$

71,177

 

 

$

167,441

 

 

$

143,652

 

Earnings excluding nonoperating items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

88,277

 

 

$

79,164

 

 

$

71,177

 

 

$

167,441

 

 

$

143,652

 

Nonoperating items, net of income tax benefit

 

 

 

 

 

7,966

 

 

 

12,486

 

 

 

7,966

 

 

 

18,268

 

Operating earnings

 

$

88,277

 

 

$

87,130

 

 

$

83,663

 

 

$

175,407

 

 

$

161,920

 

PERIOD-END BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

20,175,812

 

 

$

20,112,838

 

 

$

19,370,917

 

 

$

20,175,812

 

 

$

19,370,917

 

Securities

 

 

5,725,735

 

 

 

5,577,522

 

 

 

6,113,873

 

 

 

5,725,735

 

 

 

6,113,873

 

Earning assets

 

 

26,088,759

 

 

 

25,881,559

 

 

 

25,625,047

 

 

 

26,088,759

 

 

 

25,625,047

 

Total assets

 

 

28,761,863

 

 

 

28,490,231

 

 

 

27,925,447

 

 

 

28,761,863

 

 

 

27,925,447

 

Noninterest-bearing deposits

 

 

8,114,632

 

 

 

8,158,658

 

 

 

8,165,796

 

 

 

8,114,632

 

 

 

8,165,796

 

Total deposits

 

 

23,236,042

 

 

 

23,380,294

 

 

 

22,235,338

 

 

 

23,236,042

 

 

 

22,235,338

 

Common stockholders' equity

 

 

3,318,915

 

 

 

3,190,575

 

 

 

2,929,555

 

 

 

3,318,915

 

 

 

2,929,555

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

20,150,104

 

 

$

20,126,948

 

 

$

19,193,234

 

 

$

20,138,590

 

 

$

19,111,318

 

Securities (b)

 

 

5,586,390

 

 

 

5,656,689

 

 

 

6,032,058

 

 

 

5,621,345

 

 

 

5,965,046

 

Earning assets

 

 

25,992,894

 

 

 

26,020,447

 

 

 

25,391,025

 

 

 

26,006,595

 

 

 

25,249,441

 

Total assets

 

 

28,537,810

 

 

 

28,451,548

 

 

 

27,485,052

 

 

 

28,494,917

 

 

 

27,361,750

 

Noninterest-bearing deposits

 

 

8,099,621

 

 

 

8,227,698

 

 

 

8,149,521

 

 

 

8,163,306

 

 

 

8,050,870

 

Total deposits

 

 

23,137,563

 

 

 

23,114,139

 

 

 

22,101,474

 

 

 

23,125,916

 

 

 

22,072,608

 

Common stockholders' equity

 

 

3,230,503

 

 

 

3,118,051

 

 

 

2,908,997

 

 

 

3,174,588

 

 

 

2,891,005

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted

 

$

1.01

 

 

$

0.91

 

 

$

0.82

 

 

$

1.92

 

 

$

1.65

 

Cash dividends per share

 

 

0.27

 

 

 

0.27

 

 

 

0.24

 

 

 

0.54

 

 

 

0.48

 

Book value per share (period-end)

 

 

38.70

 

 

 

37.23

 

 

 

34.33

 

 

 

38.70

 

 

 

34.33

 

Tangible book value per share (period-end)

 

 

28.46

 

 

 

26.92

 

 

 

24.66

 

 

 

28.46

 

 

 

24.66

 

Weighted average number of shares - diluted

 

 

85,835

 

 

 

85,800

 

 

 

85,483

 

 

 

85,810

 

 

 

85,451

 

Period-end number of shares

 

 

85,759

 

 

 

85,710

 

 

 

85,335

 

 

 

85,759

 

 

 

85,335

 

Market data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High sales price

 

$

44.74

 

 

$

44.34

 

 

$

53.60

 

 

$

44.74

 

 

$

56.40

 

Low sales price

 

 

37.03

 

 

 

34.11

 

 

 

45.76

 

 

 

34.11

 

 

 

45.76

 

Period-end closing price

 

 

40.06

 

 

 

40.40

 

 

 

46.65

 

 

 

40.06

 

 

 

46.65

 

Trading volume

 

 

27,874

 

 

 

28,124

 

 

 

35,705

 

 

 

55,998

 

 

 

71,075

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.24

%

 

 

1.13

%

 

 

1.04

%

 

 

1.18

%

 

 

1.06

%

Return on average common equity

 

 

10.96

%

 

 

10.30

%

 

 

9.81

%

 

 

10.64

%

 

 

10.02

%

Return on average tangible common equity

 

 

15.07

%

 

 

14.38

%

 

 

13.72

%

 

 

14.73

%

 

 

14.06

%

Tangible common equity ratio (c)

 

 

8.75

%

 

 

8.36

%

 

 

7.76

%

 

 

8.75

%

 

 

7.76

%

Net interest margin (TE)

 

 

3.45

%

 

 

3.46

%

 

 

3.40

%

 

 

3.45

%

 

 

3.39

%

Average loan/deposit ratio

 

 

87.09

%

 

 

87.08

%

 

 

86.84

%

 

 

87.08

%

 

 

86.58

%

Allowance for loan losses as a

   percentage of period-end loans

 

 

0.97

%

 

 

0.97

%

 

 

1.11

%

 

 

0.97

%

 

 

1.11

%

Annualized net charge-offs to average loans

 

 

0.14

%

 

 

0.36

%

 

 

0.11

%

 

 

0.25

%

 

 

0.18

%

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

 

 

61.60

%

 

 

56.81

%

 

 

53.35

%

 

 

61.60

%

 

 

53.35

%

Select performance measures excluding nonoperating items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings per share - diluted (d)

 

$

1.01

 

 

$

1.00

 

 

$

0.96

 

 

$

2.01

 

 

$

1.86

 

Return on average assets - operating

 

 

1.24

%

 

 

1.24

%

 

 

1.22

%

 

 

1.24

%

 

 

1.19

%

Return on average common equity - operating

 

 

10.96

%

 

 

11.33

%

 

 

11.54

%

 

 

11.14

%

 

 

11.29

%

Return on average tangible common equity - operating

 

 

15.07

%

 

 

15.83

%

 

 

16.12

%

 

 

15.44

%

 

 

15.85

%

Efficiency ratio (e)

 

 

58.95

%

 

 

58.10

%

 

 

57.40

%

 

 

58.53

%

 

 

57.45

%

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

 

 

26.17

%

 

 

24.01

%

 

 

24.20

%

 

 

25.11

%

 

 

24.26

%

FTE headcount

 

 

3,930

 

 

 

3,885

 

 

 

3,780

 

 

 

3,930

 

 

 

3,780

 

8


 

(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.

 

 

9


 

HANCOCK WHITNEY CORPORATION

 

QUARTERLY FINANCIAL HIGHLIGHTS

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

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

 

6/30/2019

 

 

3/31/2019

 

 

12/31/2018

 

 

9/30/2018

 

 

6/30/2018

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

219,868

 

 

$

219,254

 

 

$

217,433

 

 

$

214,194

 

 

$

211,547

 

Net interest income (TE) (a)

 

 

223,586

 

 

 

223,078

 

 

 

221,471

 

 

 

218,289

 

 

 

215,628

 

Provision for loan losses

 

 

8,088

 

 

 

18,043

 

 

 

8,100

 

 

 

6,872

 

 

 

8,891

 

Noninterest income

 

 

79,250

 

 

 

70,503

 

 

 

74,538

 

 

 

75,518

 

 

 

68,832

 

Noninterest expense

 

 

183,567

 

 

 

175,700

 

 

 

179,366

 

 

 

181,187

 

 

 

184,402

 

Income tax expense

 

 

19,186

 

 

 

16,850

 

 

 

8,265

 

 

 

17,775

 

 

 

15,909

 

Net income

 

$

88,277

 

 

$

79,164

 

 

$

96,240

 

 

$

83,878

 

 

$

71,177

 

Earnings excluding nonoperating items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

88,277

 

 

$

79,164

 

 

$

96,240

 

 

$

83,878

 

 

$

71,177

 

Nonoperating items, net of income tax benefit

 

 

 

 

 

7,966

 

 

 

1,465

 

 

 

3,813

 

 

 

12,486

 

Operating earnings

 

$

88,277

 

 

$

87,130

 

 

$

97,705

 

 

$

87,691

 

 

$

83,663

 

PERIOD-END BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

20,175,812

 

 

$

20,112,838

 

 

$

20,026,411

 

 

$

19,543,717

 

 

$

19,370,917

 

Securities

 

 

5,725,735

 

 

 

5,577,522

 

 

 

5,670,584

 

 

 

5,987,447

 

 

 

6,113,873

 

Earning assets

 

 

26,088,759

 

 

 

25,881,559

 

 

 

25,836,239

 

 

 

25,668,281

 

 

 

25,625,047

 

Total assets

 

 

28,761,863

 

 

 

28,490,231

 

 

 

28,235,907

 

 

 

28,098,175

 

 

 

27,925,447

 

Noninterest-bearing deposits

 

 

8,114,632

 

 

 

8,158,658

 

 

 

8,499,027

 

 

 

8,140,530

 

 

 

8,165,796

 

Total deposits

 

 

23,236,042

 

 

 

23,380,294

 

 

 

23,150,185

 

 

 

22,417,807

 

 

 

22,235,338

 

Common stockholders' equity

 

 

3,318,915

 

 

 

3,190,575

 

 

 

3,081,340

 

 

 

2,978,878

 

 

 

2,929,555

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

20,150,104

 

 

$

20,126,948

 

 

$

19,817,729

 

 

$

19,464,639

 

 

$

19,193,234

 

Securities (b)

 

 

5,586,390

 

 

 

5,656,689

 

 

 

5,965,461

 

 

 

6,186,410

 

 

 

6,032,058

 

Earning assets

 

 

25,992,894

 

 

 

26,020,447

 

 

 

26,011,183

 

 

 

25,832,372

 

 

 

25,391,025

 

Total assets

 

 

28,537,810

 

 

 

28,451,548

 

 

 

28,259,963

 

 

 

28,026,923

 

 

 

27,485,052

 

Noninterest-bearing deposits

 

 

8,099,621

 

 

 

8,227,698

 

 

 

8,260,487

 

 

 

8,017,353

 

 

 

8,149,521

 

Total deposits

 

 

23,137,563

 

 

 

23,114,139

 

 

 

22,498,145

 

 

 

22,021,559

 

 

 

22,101,474

 

Common stockholders' equity

 

 

3,230,503

 

 

 

3,118,051

 

 

 

2,993,265

 

 

 

2,952,431

 

 

 

2,908,997

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - diluted

 

$

1.01

 

 

$

0.91

 

 

$

1.10

 

 

$

0.96

 

 

$

0.82

 

Cash dividends per share

 

 

0.27

 

 

 

0.27

 

 

 

0.27

 

 

 

0.27

 

 

 

0.24

 

Book value per share (period-end)

 

 

38.70

 

 

 

37.23

 

 

 

35.98

 

 

 

34.90

 

 

 

34.33

 

Tangible book value per share (period-end)

 

 

28.46

 

 

 

26.92

 

 

 

25.62

 

 

 

24.44

 

 

 

24.66

 

Weighted average number of shares - diluted

 

 

85,835

 

 

 

85,800

 

 

 

85,677

 

 

 

85,539

 

 

 

85,483

 

Period-end number of shares

 

 

85,759

 

 

 

85,710

 

 

 

85,643

 

 

 

85,364

 

 

 

85,335

 

Market data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High sales price

 

$

44.74

 

 

$

44.34

 

 

$

49.22

 

 

$

53.00

 

 

$

55.00

 

Low sales price

 

 

37.03

 

 

 

34.11

 

 

 

32.59

 

 

 

46.05

 

 

 

45.76

 

Period-end closing price

 

 

40.06

 

 

 

40.40

 

 

 

34.77

 

 

 

47.55

 

 

 

46.65

 

Trading volume

 

 

27,874

 

 

 

28,124

 

 

 

33,269

 

 

 

28,332

 

 

 

35,705

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.24

%

 

 

1.13

%

 

 

1.35

%

 

 

1.19

%

 

 

1.04

%

Return on average common equity

 

 

10.96

%

 

 

10.30

%

 

 

12.76

%

 

 

11.27

%

 

 

9.81

%

Return on average tangible common equity

 

 

15.07

%

 

 

14.38

%

 

 

18.15

%

 

 

16.11

%

 

 

13.72

%

Tangible common equity ratio (c)

 

 

8.75

%

 

 

8.36

%

 

 

8.02

%

 

 

7.67

%

 

 

7.76

%

Net interest margin (TE)

 

 

3.45

%

 

 

3.46

%

 

 

3.39

%

 

 

3.36

%

 

 

3.40

%

Average loan/deposit ratio

 

 

87.09

%

 

 

87.08

%

 

 

88.09

%

 

 

88.39

%

 

 

86.84

%

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

 

 

0.97

%

 

 

0.97

%

 

 

0.97

%

 

 

1.10

%

 

 

1.11

%

Annualized net charge-offs to average loans

 

 

0.14

%

 

 

0.36

%

 

 

0.56

%

 

 

0.14

%

 

 

0.11

%

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

 

 

61.60

%

 

 

56.81

%

 

 

58.60

%

 

 

55.25

%

 

 

53.35

%

   Select performance measures excluding nonoperating items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings per share - diluted (d)

 

$

1.01

 

 

$

1.00

 

 

$

1.12

 

 

$

1.01

 

 

$

0.96

 

Return on average assets - operating

 

 

1.24

%

 

 

1.24

%

 

 

1.37

%

 

 

1.24

%

 

 

1.22

%

Return on average common equity - operating

 

 

10.96

%

 

 

11.33

%

 

 

12.95

%

 

 

11.78

%

 

 

11.54

%

Return on average tangible common equity - operating

 

 

15.07

%

 

 

15.83

%

 

 

18.43

%

 

 

16.84

%

 

 

16.12

%

Efficiency ratio (e)

 

 

58.95

%

 

 

58.10

%

 

 

58.03

%

 

 

58.11

%

 

 

57.40

%

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

 

 

26.17

%

 

 

24.01

%

 

 

25.03

%

 

 

25.70

%

 

 

24.20

%

FTE headcount

 

 

3,930

 

 

 

3,885

 

 

 

3,933

 

 

 

3,858

 

 

 

3,780

 

10


 

 

(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.

 

 

11


 

HANCOCK WHITNEY CORPORATION

 

INCOME STATEMENT

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(dollars in thousands, except per share data)

 

6/30/2019

 

 

3/31/2019

 

 

6/30/2018

 

 

6/30/2019

 

 

6/30/2018

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

280,378

 

 

$

276,283

 

 

$

252,304

 

 

$

556,661

 

 

$

493,699

 

Interest income (TE) (f)

 

 

284,096

 

 

 

280,107

 

 

 

256,385

 

 

 

564,203

 

 

 

501,743

 

Interest expense

 

 

60,510

 

 

 

57,029

 

 

 

40,757

 

 

 

117,539

 

 

 

76,488

 

Net interest income (TE)

 

 

223,586

 

 

 

223,078

 

 

 

215,628

 

 

 

446,664

 

 

 

425,255

 

Provision for loan losses

 

 

8,088

 

 

 

18,043

 

 

 

8,891

 

 

 

26,131

 

 

 

21,144

 

Noninterest income

 

 

79,250

 

 

 

70,503

 

 

 

68,832

 

 

 

149,753

 

 

 

135,084

 

Noninterest expense

 

 

183,567

 

 

 

175,700

 

 

 

184,402

 

 

 

359,267

 

 

 

355,193

 

Income before income taxes

 

 

107,463

 

 

 

96,014

 

 

 

87,086

 

 

 

203,477

 

 

 

175,958

 

Income tax expense

 

 

19,186

 

 

 

16,850

 

 

 

15,909

 

 

 

36,036

 

 

 

32,306

 

Net income

 

$

88,277

 

 

$

79,164

 

 

$

71,177

 

 

$

167,441

 

 

$

143,652

 

Earnings excluding nonoperating items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

88,277

 

 

$

79,164

 

 

$

71,177

 

 

$

167,441

 

 

$

143,652

 

Provision for loan losses for alleged fraud (g)

 

 

 

 

 

10,084

 

 

 

 

 

 

10,084

 

 

 

 

Nonoperating noninterest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,145

 

Nonoperating noninterest expense

 

 

 

 

 

 

 

 

15,805

 

 

 

 

 

 

21,658

 

Income tax benefit

 

 

 

 

 

(2,118

)

 

 

(3,319

)

 

 

(2,118

)

 

 

(4,535

)

Nonoperating items, net of income tax benefit

 

 

 

 

 

7,966

 

 

 

12,486

 

 

 

7,966

 

 

 

18,268

 

Operating earnings

 

$

88,277

 

 

$

87,130

 

 

$

83,663

 

 

$

175,407

 

 

$

161,920

 

PROVISION FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses excluding alleged fraud

 

$

8,088

 

 

$

7,959

 

 

$

8,891

 

 

$

16,047

 

 

$

21,144

 

Provision for loan losses for alleged fraud (g)

 

 

 

 

 

10,084

 

 

 

 

 

 

10,084

 

 

 

 

Total provision for loan losses

 

$

8,088

 

 

$

18,043

 

 

$

8,891

 

 

$

26,131

 

 

$

21,144

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

20,723

 

 

$

20,367

 

 

$

20,981

 

 

$

41,090

 

 

$

42,429

 

Trust fees

 

 

15,904

 

 

 

15,124

 

 

 

11,653

 

 

 

31,028

 

 

 

22,988

 

Bank card and ATM fees

 

 

16,619

 

 

 

15,290

 

 

 

15,464

 

 

 

31,909

 

 

 

29,922

 

Insurance and investment commissions,

   and annuity fees

 

 

6,591

 

 

 

6,528

 

 

 

6,264

 

 

 

13,119

 

 

 

12,389

 

Secondary mortgage market operations

 

 

4,433

 

 

 

3,726

 

 

 

3,965

 

 

 

8,159

 

 

 

7,366

 

Other income

 

 

14,980

 

 

 

9,468

 

 

 

10,505

 

 

 

24,448

 

 

 

21,135

 

Total operating noninterest income

 

 

79,250

 

 

 

70,503

 

 

 

68,832

 

 

 

149,753

 

 

 

136,229

 

Nonoperating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,145

)

Total noninterest income

 

$

79,250

 

 

$

70,503

 

 

$

68,832

 

 

$

149,753

 

 

$

135,084

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

$

106,635

 

 

$

103,698

 

 

$

96,835

 

 

$

210,333

 

 

$

193,201

 

Net occupancy and equipment expense

 

 

17,303

 

 

 

16,663

 

 

 

15,340

 

 

 

33,966

 

 

 

29,776

 

Other real estate (income) expense, net

 

 

395

 

 

 

(991

)

 

 

(289

)

 

 

(596

)

 

 

(79

)

Other operating expense

 

 

54,187

 

 

 

51,192

 

 

 

51,389

 

 

 

105,379

 

 

 

99,697

 

Amortization of intangibles

 

 

5,047

 

 

 

5,138

 

 

 

5,322

 

 

 

10,185

 

 

 

10,940

 

Total operating expense

 

 

183,567

 

 

 

175,700

 

 

 

168,597

 

 

 

359,267

 

 

 

333,535

 

Nonoperating expense

 

 

 

 

 

 

 

 

15,805

 

 

 

 

 

 

21,658

 

Total noninterest expense

 

$

183,567

 

 

$

175,700

 

 

$

184,402

 

 

$

359,267

 

 

$

355,193

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.01

 

 

$

0.91

 

 

$

0.82

 

 

$

1.92

 

 

$

1.65

 

Diluted

 

 

1.01

 

 

 

0.91

 

 

 

0.82

 

 

 

1.92

 

 

 

1.65

 

Operating earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted (h)

 

$

1.01

 

 

$

1.00

 

 

$

0.96

 

 

$

2.01

 

 

$

1.86

 

 

 

 

 

12


 

(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.

 

13


 

HANCOCK WHITNEY CORPORATION

 

INCOME STATEMENT

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

(dollars in thousands, except per share data)

 

6/30/2019

 

 

3/31/2019

 

 

12/31/2018

 

 

9/30/2018

 

 

6/30/2018

 

NET INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

280,378

 

 

$

276,283

 

 

$

271,357

 

 

$

263,212

 

 

$

252,304

 

Interest income (TE) (f)

 

 

284,096

 

 

 

280,107

 

 

 

275,395

 

 

 

267,307

 

 

 

256,385

 

Interest expense

 

 

60,510

 

 

 

57,029

 

 

 

53,924

 

 

 

49,018

 

 

 

40,757

 

Net interest income (TE)

 

 

223,586

 

 

 

223,078

 

 

 

221,471

 

 

 

218,289

 

 

 

215,628

 

Provision for loan losses

 

 

8,088

 

 

 

18,043

 

 

 

8,100

 

 

 

6,872

 

 

 

8,891

 

Noninterest income

 

 

79,250

 

 

 

70,503

 

 

 

74,538

 

 

 

75,518

 

 

 

68,832

 

Noninterest expense

 

 

183,567

 

 

 

175,700

 

 

 

179,366

 

 

 

181,187

 

 

 

184,402

 

Income before income taxes

 

 

107,463

 

 

 

96,014

 

 

 

104,505

 

 

 

101,653

 

 

 

87,086

 

Income tax expense

 

 

19,186

 

 

 

16,850

 

 

 

8,265

 

 

 

17,775

 

 

 

15,909

 

Net income

 

$

88,277

 

 

$

79,164

 

 

$

96,240

 

 

$

83,878

 

 

$

71,177

 

  Earnings excluding nonoperating items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

88,277

 

 

$

79,164

 

 

$

96,240

 

 

$

83,878

 

 

$

71,177

 

Provision for loan losses for alleged fraud (g)

 

 

 

 

 

10,084

 

 

 

 

 

 

 

 

 

 

Nonoperating noninterest income

 

 

 

 

 

 

 

 

(604

)

 

 

 

 

 

 

Nonoperating noninterest expense

 

 

 

 

 

 

 

 

2,458

 

 

 

4,827

 

 

 

15,805

 

Income tax benefit

 

 

 

 

 

(2,118

)

 

 

(389

)

 

 

(1,014

)

 

 

(3,319

)

Nonoperating items, net of income tax benefit

 

 

 

 

 

7,966

 

 

 

1,465

 

 

 

3,813

 

 

 

12,486

 

Operating earnings

 

$

88,277

 

 

$

87,130

 

 

$

97,705

 

 

$

87,691

 

 

$

83,663

 

PROVISION FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses excluding alleged fraud

 

$

8,088

 

 

$

7,959

 

 

$

8,100

 

 

$

6,872

 

 

$

8,891

 

Provision for loan losses for alleged fraud (g)

 

 

 

 

 

10,084

 

 

 

 

 

 

 

 

 

 

Total provision for loan losses

 

$

8,088

 

 

$

18,043

 

 

$

8,100

 

 

$

6,872

 

 

$

8,891

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

20,723

 

 

$

20,367

 

 

$

21,466

 

 

$

21,377

 

 

$

20,981

 

Trust fees

 

 

15,904

 

 

 

15,124

 

 

 

15,762

 

 

 

16,738

 

 

 

11,653

 

Bank card and ATM fees

 

 

16,619

 

 

 

15,290

 

 

 

15,656

 

 

 

14,862

 

 

 

15,464

 

Investment and insurance commissions, and

   annuity fees

 

 

6,591

 

 

 

6,528

 

 

 

6,307

 

 

 

6,652

 

 

 

6,264

 

Secondary mortgage market operations

 

 

4,433

 

 

 

3,726

 

 

 

3,933

 

 

 

4,333

 

 

 

3,965

 

Other income

 

 

14,980

 

 

 

9,468

 

 

 

10,810

 

 

 

11,556

 

 

 

10,505

 

Total operating noninterest income

 

 

79,250

 

 

 

70,503

 

 

 

73,934

 

 

 

75,518

 

 

 

68,832

 

Nonoperating income

 

 

 

 

 

 

 

 

604

 

 

 

 

 

 

 

Total noninterest income

 

$

79,250

 

 

$

70,503

 

 

$

74,538

 

 

$

75,518

 

 

$

68,832

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel expense

 

$

106,635

 

 

$

103,698

 

 

$

104,908

 

 

$

101,173

 

 

$

96,835

 

Net occupancy and equipment expense

 

 

17,303

 

 

 

16,663

 

 

 

15,980

 

 

 

15,452

 

 

 

15,340

 

Other real estate (income) expense

 

 

395

 

 

 

(991

)

 

 

(2,924

)

 

 

15

 

 

 

(289

)

Other operating expense

 

 

54,187

 

 

 

51,192

 

 

 

53,472

 

 

 

54,082

 

 

 

51,389

 

Amortization of intangibles

 

 

5,047

 

 

 

5,138

 

 

 

5,472

 

 

 

5,638

 

 

 

5,322

 

Total operating expense

 

 

183,567

 

 

 

175,700

 

 

 

176,908

 

 

 

176,360

 

 

 

168,597

 

Nonoperating expense

 

 

 

 

 

 

 

 

2,458

 

 

 

4,827

 

 

 

15,805

 

Total noninterest expense

 

$

183,567

 

 

$

175,700

 

 

$

179,366

 

 

$

181,187

 

 

$

184,402

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.01

 

 

$

0.91

 

 

$

1.11

 

 

$

0.96

 

 

$

0.82

 

Diluted

 

 

1.01

 

 

 

0.91

 

 

 

1.10

 

 

 

0.96

 

 

 

0.82

 

Operating earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted (h)

 

$

1.01

 

 

$

1.00

 

 

$

1.12

 

 

$

1.01

 

 

$

0.96

 

 

14


 

(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.

15


 

HANCOCK WHITNEY CORPORATION

PERIOD-END BALANCE SHEET

(Unaudited)

 

(dollars in thousands)

 

6/30/2019

 

 

3/31/2019

 

 

12/31/2018

 

 

9/30/2018

 

 

6/30/2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

8,559,118

 

 

$

8,656,326

 

 

$

8,620,601

 

 

$

8,438,884

 

 

$

8,410,961

 

Commercial real estate - owner occupied

 

 

2,519,970

 

 

 

2,515,428

 

 

 

2,457,748

 

 

 

2,300,271

 

 

 

2,233,794

 

Total commercial and industrial loans

 

 

11,079,088

 

 

 

11,171,754

 

 

 

11,078,349

 

 

 

10,739,155

 

 

 

10,644,755

 

Commercial real estate - income

   producing

 

 

2,895,468

 

 

 

2,563,394

 

 

 

2,341,779

 

 

 

2,311,699

 

 

 

2,342,192

 

Construction and land development loans

 

 

1,144,062

 

 

 

1,340,067

 

 

 

1,548,335

 

 

 

1,523,419

 

 

 

1,515,233

 

Residential mortgage loans

 

 

2,968,271

 

 

 

2,933,251

 

 

 

2,910,081

 

 

 

2,846,916

 

 

 

2,780,359

 

Consumer loans

 

 

2,088,923

 

 

 

2,104,372

 

 

 

2,147,867

 

 

 

2,122,528

 

 

 

2,088,378

 

Total loans

 

 

20,175,812

 

 

 

20,112,838

 

 

 

20,026,411

 

 

 

19,543,717

 

 

 

19,370,917

 

Loans held for sale

 

 

36,150

 

 

 

27,437

 

 

 

28,150

 

 

 

29,043

 

 

 

36,047

 

Securities

 

 

5,725,735

 

 

 

5,577,522

 

 

 

5,670,584

 

 

 

5,987,447

 

 

 

6,113,873

 

Short-term investments

 

 

151,062

 

 

 

163,762

 

 

 

111,094

 

 

 

108,074

 

 

 

104,210

 

Earning assets

 

 

26,088,759

 

 

 

25,881,559

 

 

 

25,836,239

 

 

 

25,668,281

 

 

 

25,625,047

 

Allowance for loan losses

 

 

(195,625

)

 

 

(194,688

)

 

 

(194,514

)

 

 

(214,550

)

 

 

(214,530

)

Goodwill and other intangible assets

 

 

878,051

 

 

 

883,097

 

 

 

887,123

 

 

 

892,595

 

 

 

825,223

 

Other assets

 

 

1,990,678

 

 

 

1,920,263

 

 

 

1,707,059

 

 

 

1,751,849

 

 

 

1,689,707

 

Total assets

 

$

28,761,863

 

 

$

28,490,231

 

 

$

28,235,907

 

 

$

28,098,175

 

 

$

27,925,447

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

8,114,632

 

 

$

8,158,658

 

 

$

8,499,027

 

 

$

8,140,530

 

 

$

8,165,796

 

Interest-bearing transaction and savings

   deposits

 

 

8,034,801

 

 

 

8,224,203

 

 

 

8,000,093

 

 

 

7,972,417

 

 

 

7,711,542

 

Interest-bearing public fund deposits

 

 

3,159,790

 

 

 

3,229,589

 

 

 

3,006,516

 

 

 

2,613,858

 

 

 

2,854,839

 

Time deposits

 

 

3,926,819

 

 

 

3,767,844

 

 

 

3,644,549

 

 

 

3,691,002

 

 

 

3,503,161

 

Total interest-bearing deposits

 

 

15,121,410

 

 

 

15,221,636

 

 

 

14,651,158

 

 

 

14,277,277

 

 

 

14,069,542

 

Total deposits

 

 

23,236,042

 

 

 

23,380,294

 

 

 

23,150,185

 

 

 

22,417,807

 

 

 

22,235,338

 

Short-term borrowings

 

 

1,641,598

 

 

 

1,388,735

 

 

 

1,589,128

 

 

 

2,276,647

 

 

 

2,314,190

 

Long-term debt

 

 

232,754

 

 

 

224,962

 

 

 

224,993

 

 

 

215,912

 

 

 

266,009

 

Other liabilities

 

 

332,554

 

 

 

305,665

 

 

 

190,261

 

 

 

208,931

 

 

 

180,355

 

Total liabilities

 

 

25,442,948

 

 

 

25,299,656

 

 

 

25,154,567

 

 

 

25,119,297

 

 

 

24,995,892

 

COMMON STOCKHOLDERS'

   EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock net of treasury and capital surplus

 

 

2,030,208

 

 

 

2,023,864

 

 

 

2,018,457

 

 

 

2,028,160

 

 

 

2,022,258

 

Retained earnings

 

 

1,363,910

 

 

 

1,299,220

 

 

 

1,243,592

 

 

 

1,170,897

 

 

 

1,110,506

 

Accumulated other comprehensive income

 

 

(75,203

)

 

 

(132,509

)

 

 

(180,709

)

 

 

(220,179

)

 

 

(203,209

)

Total common stockholders' equity

 

 

3,318,915

 

 

 

3,190,575

 

 

 

3,081,340

 

 

 

2,978,878

 

 

 

2,929,555

 

Total liabilities & stockholders' equity

 

$

28,761,863

 

 

$

28,490,231

 

 

$

28,235,907

 

 

$

28,098,175

 

 

$

27,925,447

 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity

 

$

2,440,864

 

 

$

2,307,478

 

 

$

2,194,217

 

 

$

2,086,283

 

 

$

2,104,332

 

Tier 1 capital (i)

 

 

2,533,273

 

 

 

2,457,191

 

 

 

2,391,762

 

 

 

2,323,845

 

 

 

2,324,691

 

Common equity as a percentage of total assets

 

 

11.54

%

 

 

11.21

%

 

 

10.91

%

 

 

10.60

%

 

 

10.49

%

Tangible common equity ratio

 

 

8.75

%

 

 

8.36

%

 

 

8.02

%

 

 

7.67

%

 

 

7.76

%

Leverage (Tier 1) ratio (i)

 

 

9.10

%

 

 

8.85

%

 

 

8.67

%

 

 

8.50

%

 

 

8.66

%

Tier 1 risk-based capital ratio (i)

 

 

10.99

%

 

 

10.74

%

 

 

10.48

%

 

 

10.36

%

 

 

10.48

%

Total risk-based capital ratio (i)

 

 

12.49

%

 

 

12.24

%

 

 

11.99

%

 

 

11.98

%

 

 

12.12

%

 

(i)

Estimated for most recent period-end.

16


 

HANCOCK WHITNEY CORPORATION

AVERAGE BALANCE SHEET

(Unaudited)

 

 

Three Months Ended

 

 

Six Months Ended

 

(in thousands)

 

6/30/2019

 

 

3/31/2019

 

 

6/30/2018

 

 

6/30/2019

 

 

6/30/2018

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial non-real estate loans

 

$

8,573,274

 

 

$

8,659,559

 

 

$

8,350,436

 

 

$

8,616,178

 

 

$

8,320,860

 

Commercial real estate - owner occupied

 

 

2,515,580

 

 

 

2,509,152

 

 

 

2,207,871

 

 

 

2,512,061

 

 

 

2,184,349

 

Total commercial and industrial loans

 

 

11,088,854

 

 

 

11,168,711

 

 

 

10,558,307

 

 

 

11,128,239

 

 

 

10,505,209

 

Commercial real estate - income producing

 

 

2,719,554

 

 

 

2,469,710

 

 

 

2,354,508

 

 

 

2,595,645

 

 

 

2,369,141

 

Construction and land development loans

 

 

1,273,503

 

 

 

1,423,714

 

 

 

1,468,126

 

 

 

1,348,194

 

 

 

1,428,738

 

Residential mortgage loans

 

 

2,969,746

 

 

 

2,942,396

 

 

 

2,754,292

 

 

 

2,956,146

 

 

 

2,736,451

 

Consumer loans

 

 

2,098,447

 

 

 

2,122,417

 

 

 

2,058,001

 

 

 

2,110,366

 

 

 

2,071,779

 

Total loans

 

 

20,150,104

 

 

 

20,126,948

 

 

 

19,193,234

 

 

 

20,138,590

 

 

 

19,111,318

 

Loans held for sale

 

 

27,873

 

 

 

20,618

 

 

 

22,575

 

 

 

24,266

 

 

 

27,358

 

Securities (j)

 

 

5,586,390

 

 

 

5,656,689

 

 

 

6,032,058

 

 

 

5,621,345

 

 

 

5,965,046

 

Short-term investments

 

 

228,527

 

 

 

216,192

 

 

 

143,158

 

 

 

222,394

 

 

 

145,719

 

Earning assets

 

 

25,992,894

 

 

 

26,020,447

 

 

 

25,391,025

 

 

 

26,006,595

 

 

 

25,249,441

 

Allowance for loan losses

 

 

(195,238

)

 

 

(196,384

)

 

 

(212,766

)

 

 

(195,808

)

 

 

(214,770

)

Goodwill and other intangible assets

 

 

880,497

 

 

 

885,381

 

 

 

827,760

 

 

 

882,926

 

 

 

830,499

 

Other assets

 

 

1,859,657

 

 

 

1,742,104

 

 

 

1,479,033

 

 

 

1,801,204

 

 

 

1,496,580

 

Total assets

 

$

28,537,810

 

 

$

28,451,548

 

 

$

27,485,052

 

 

$

28,494,917

 

 

$

27,361,750

 

LIABILITIES AND COMMON STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

8,099,621

 

 

$

8,227,698

 

 

$

8,149,521

 

 

$

8,163,306

 

 

$

8,050,870

 

Interest-bearing transaction and savings deposits

 

 

8,026,012

 

 

 

8,082,584

 

 

 

7,860,019

 

 

 

8,054,141

 

 

 

7,951,092

 

Interest-bearing public fund deposits

 

 

3,194,113

 

 

 

3,060,565

 

 

 

2,970,117

 

 

 

3,127,708

 

 

 

3,019,821

 

Time deposits

 

 

3,817,817

 

 

 

3,743,292

 

 

 

3,121,817

 

 

 

3,780,761

 

 

 

3,050,825

 

Total interest-bearing deposits

 

 

15,037,942

 

 

 

14,886,441

 

 

 

13,951,953

 

 

 

14,962,610

 

 

 

14,021,738

 

Total deposits

 

 

23,137,563

 

 

 

23,114,139

 

 

 

22,101,474

 

 

 

23,125,916

 

 

 

22,072,608

 

Short-term borrowings

 

 

1,617,776

 

 

 

1,684,904

 

 

 

1,989,416

 

 

 

1,651,155

 

 

 

1,906,684

 

Long-term debt

 

 

232,277

 

 

 

224,966

 

 

 

299,695

 

 

 

228,642

 

 

 

302,391

 

Other liabilities

 

 

319,691

 

 

 

309,488

 

 

 

185,470

 

 

 

314,616

 

 

 

189,062

 

Common stockholders' equity

 

 

3,230,503

 

 

 

3,118,051

 

 

 

2,908,997

 

 

 

3,174,588

 

 

 

2,891,005

 

Total liabilities & stockholders' equity

 

$

28,537,810

 

 

$

28,451,548

 

 

$

27,485,052

 

 

$

28,494,917

 

 

$

27,361,750

 

 

(j)

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

17


 

HANCOCK WHITNEY CORPORATION

AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY

(Unaudited)

 

  

 

Three Months Ended

 

 

 

6/30/2019

 

 

3/31/2019

 

 

6/30/2018

 

(dollars in millions)

 

Average

Balance

 

 

Interest

 

 

Rate

 

 

Average

Balance

 

 

Interest

 

 

Rate

 

 

Average

Balance

 

 

Interest

 

 

Rate

 

AVERAGE EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans (TE) (k)

 

$

15,081.9

 

 

$

185.3

 

 

 

4.93

%

 

$

15,062.1

 

 

$

180.5

 

 

 

4.86

%

 

$

14,380.9

 

 

$

162.3

 

 

 

4.53

%

Residential mortgage loans

 

 

2,969.7

 

 

 

30.1

 

 

 

4.06

%

 

 

2,942.4

 

 

 

31.1

 

 

 

4.23

%

 

 

2,754.3

 

 

 

28.1

 

 

 

4.08

%

Consumer loans

 

 

2,098.5

 

 

 

30.3

 

 

 

5.79

%

 

 

2,122.4

 

 

 

29.9

 

 

 

5.72

%

 

 

2,058.0

 

 

 

27.2

 

 

 

5.30

%

Loan fees & late charges

 

 

 

 

 

(0.1

)

 

 

0.00

%

 

 

 

 

 

(0.9

)

 

 

0.00

%

 

 

 

 

 

0.2

 

 

 

0.00

%

Total loans (TE) (l) (m)

 

 

20,150.1

 

 

 

245.6

 

 

 

4.89

%

 

 

20,126.9

 

 

 

240.6

 

 

 

4.84

%

 

 

19,193.2

 

 

 

217.8

 

 

 

4.55

%

Loans held for sale

 

 

27.9

 

 

 

0.3

 

 

 

4.96

%

 

 

20.6

 

 

 

0.3

 

 

 

4.92

%

 

 

22.6

 

 

 

0.3

 

 

 

5.22

%

US Treasury and government

   agency securities

 

 

126.0

 

 

 

0.7

 

 

 

2.30

%

 

 

123.8

 

 

 

0.7

 

 

 

2.25

%

 

 

145.6

 

 

 

0.8

 

 

 

2.22

%

CMOs and mortgage backed securities

 

 

4,550.1

 

 

 

29.0

 

 

 

2.55

%

 

 

4,599.4

 

 

 

29.9

 

 

 

2.60

%

 

 

4,932.0

 

 

 

29.3

 

 

 

2.38

%

Municipals (TE)

 

 

906.8

 

 

 

7.1

 

 

 

3.12

%

 

 

930.0

 

 

 

7.4

 

 

 

3.17

%

 

 

951.0

 

 

 

7.6

 

 

 

3.18

%

Other securities

 

 

3.5

 

 

 

0.0

 

 

 

3.30

%

 

 

3.5

 

 

 

0.0

 

 

 

3.09

%

 

 

3.5

 

 

 

0.0

 

 

 

2.84

%

Total securities (TE) (n)

 

 

5,586.4

 

 

 

36.8

 

 

 

2.64

%

 

 

5,656.7

 

 

 

38.0

 

 

 

2.69

%

 

 

6,032.1

 

 

 

37.7

 

 

 

2.50

%

Total short-term investments

 

 

228.5

 

 

 

1.4

 

 

 

2.36

%

 

 

216.2

 

 

 

1.2

 

 

 

2.18

%

 

 

143.1

 

 

 

0.6

 

 

 

1.61

%

Average earning assets yield (TE)

 

$

25,992.9

 

 

$

284.1

 

 

 

4.38

%

 

$

26,020.4

 

 

$

280.1

 

 

 

4.35

%

 

$

25,391.0

 

 

$

256.4

 

 

 

4.05

%

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Interest-bearing transaction and

   savings deposits

 

$

8,026.0

 

 

$

15.3

 

 

 

0.76

%

 

$

8,082.6

 

 

$

14.7

 

 

 

0.74

%

 

$

7,860.0

 

 

$

9.3

 

 

 

0.47

%

Time deposits

 

 

3,817.8

 

 

 

19.4

 

 

 

2.03

%

 

 

3,743.3

 

 

 

18.0

 

 

 

1.95

%

 

 

3,121.8

 

 

 

11.5

 

 

 

1.48

%

Public funds

 

 

3,194.1

 

 

 

15.2

 

 

 

1.91

%

 

 

3,060.5

 

 

 

13.4

 

 

 

1.78

%

 

 

2,970.1

 

 

 

9.1

 

 

 

1.22

%

Total interest-bearing deposits

 

 

15,037.9

 

 

 

49.9

 

 

 

1.33

%

 

 

14,886.4

 

 

 

46.1

 

 

 

1.26

%

 

 

13,951.9

 

 

 

29.9

 

 

 

0.86

%

Short-term borrowings

 

 

1,617.8

 

 

 

7.8

 

 

 

1.94

%

 

 

1,684.9

 

 

 

8.1

 

 

 

1.92

%

 

 

1,989.4

 

 

 

7.4

 

 

 

1.49

%

Long-term debt

 

 

232.3

 

 

 

2.8

 

 

 

4.86

%

 

 

225.0

 

 

 

2.8

 

 

 

4.99

%

 

 

299.7

 

 

 

3.5

 

 

 

4.63

%

Total borrowings

 

 

1,850.1

 

 

 

10.6

 

 

 

2.31

%

 

 

1,909.9

 

 

 

10.9

 

 

 

2.30

%

 

 

2,289.1

 

 

 

10.9

 

 

 

1.91

%

Total interest-bearing liabilities cost

 

 

16,888.0

 

 

 

60.5

 

 

 

1.44

%

 

 

16,796.3

 

 

 

57.0

 

 

 

1.38

%

 

 

16,241.0

 

 

 

40.8

 

 

 

1.01

%

Net interest-free funding sources

 

 

9,104.9

 

 

 

 

 

 

 

 

 

 

 

9,224.1

 

 

 

 

 

 

 

 

 

 

 

9,150.0

 

 

 

 

 

 

 

-

 

Total cost of funds

 

 

25,992.9

 

 

 

60.5

 

 

 

0.93

%

 

 

26,020.4

 

 

 

57.0

 

 

 

0.89

%

 

 

25,391.0

 

 

 

40.8

 

 

 

0.64

%

Net Interest Spread (TE)

 

 

 

 

 

$

223.6

 

 

 

2.94

%

 

 

 

 

 

$

223.1

 

 

 

2.97

%

 

 

 

 

 

$

215.6

 

 

 

3.04

%

Net Interest Margin (TE)

 

$

25,992.9

 

 

$

223.6

 

 

 

3.45

%

 

$

26,020.4

 

 

$

223.1

 

 

 

3.46

%

 

$

25,391.0

 

 

$

215.6

 

 

 

3.40

%

 

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

(l) Includes nonaccrual loans.

 

 

 

 

(m) Included in interest income is net purchase accounting accretion of $4.8 million, $5.0 million and $6.2 million for the three months ended

 

 

 

 

 

 

       June 30, 2019, March 31, 2019 and June 30, 2018, respectively.

 

 

 

 

 

 

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

 

 

 

 

 

 

18


 

HANCOCK WHITNEY CORPORATION

 

AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

6/30/2019

 

 

6/30/2018

 

(dollars in millions)

 

Average

Balance

 

 

Interest

 

 

Rate

 

 

Average

Balance

 

 

Interest

 

 

Rate

 

AVERAGE EARNING ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans (TE) (k)

 

$

15,072.1

 

 

 

365.8

 

 

 

4.89

%

 

$

14,303.1

 

 

$

313.3

 

 

 

4.41

%

Residential mortgage loans

 

 

2,956.1

 

 

 

61.2

 

 

 

4.14

%

 

 

2,736.4

 

 

 

56.0

 

 

 

4.09

%

Consumer loans

 

 

2,110.4

 

 

 

60.2

 

 

 

5.75

%

 

 

2,071.8

 

 

 

56.2

 

 

 

5.47

%

Loan fees & late charges

 

 

 

 

 

(1.0

)

 

 

0.00

%

 

 

 

 

 

0.6

 

 

 

0.00

%

Total loans (TE) (l) (m)

 

 

20,138.6

 

 

 

486.2

 

 

 

4.86

%

 

 

19,111.3

 

 

 

426.1

 

 

 

4.49

%

Loans held for sale

 

 

24.3

 

 

 

0.6

 

 

 

4.96

%

 

 

27.4

 

 

 

0.5

 

 

 

3.77

%

US Treasury and government agency securities

 

 

124.9

 

 

 

1.4

 

 

 

2.28

%

 

 

147.0

 

 

 

1.6

 

 

 

2.22

%

CMOs and mortgage backed securities

 

 

4,574.6

 

 

 

58.9

 

 

 

2.58

%

 

 

4,859.0

 

 

 

57.2

 

 

 

2.35

%

Municipals (TE)

 

 

918.3

 

 

 

14.5

 

 

 

3.14

%

 

 

955.5

 

 

 

15.2

 

 

 

3.18

%

Other securities

 

 

3.5

 

 

 

0.1

 

 

 

3.19

%

 

 

3.5

 

 

 

0.0

 

 

 

2.45

%

Total securities (TE) (n)

 

 

5,621.3

 

 

 

74.9

 

 

 

2.66

%

 

 

5,965.0

 

 

 

74.0

 

 

 

2.48

%

Total short-term investments

 

 

222.4

 

 

 

2.5

 

 

 

2.28

%

 

 

145.7

 

 

 

1.1

 

 

 

1.47

%

Average earning assets yield (TE) (n)

 

$

26,006.6

 

 

$

564.2

 

 

 

4.36

%

 

$

25,249.4

 

 

$

501.7

 

 

 

4.00

%

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction and savings deposits

 

 

8,054.1

 

 

 

30.0

 

 

 

0.75

%

 

$

7,951.1

 

 

 

18.4

 

 

 

0.47

%

Time deposits

 

 

3,780.8

 

 

 

37.4

 

 

 

1.99

%

 

 

3,050.8

 

 

 

21.2

 

 

 

1.40

%

Public funds

 

 

3,127.7

 

 

 

28.6

 

 

 

1.85

%

 

 

3,019.8

 

 

 

17.2

 

 

 

1.15

%

Total interest-bearing deposits

 

 

14,962.6

 

 

 

96.0

 

 

 

1.29

%

 

 

14,021.7

 

 

 

56.8

 

 

 

0.82

%

Short-term borrowings

 

 

1,651.2

 

 

 

15.9

 

 

 

1.93

%

 

 

1,906.7

 

 

 

12.8

 

 

 

1.35

%

Long-term debt

 

 

228.6

 

 

 

5.6

 

 

 

4.92

%

 

 

302.4

 

 

 

6.9

 

 

 

4.56

%

Total borrowings

 

 

1,879.8

 

 

 

21.5

 

 

 

2.31

%

 

 

2,209.1

 

 

 

19.7

 

 

 

1.79

%

Total interest-bearing liabilities cost

 

 

16,842.4

 

 

 

117.5

 

 

 

1.41

%

 

 

16,230.8

 

 

 

76.5

 

 

 

0.95

%

Net interest-free funding sources

 

 

9,164.2

 

 

 

 

 

 

 

 

 

 

 

9,018.6

 

 

 

 

 

 

 

 

 

Total cost of funds

 

 

26,006.6

 

 

 

117.5

 

 

 

0.91

%

 

 

25,249.4

 

 

 

76.5

 

 

 

0.61

%

Net Interest Spread (TE)

 

 

 

 

 

$

446.7

 

 

 

2.96

%

 

 

 

 

 

$

425.2

 

 

 

3.05

%

Net Interest Margin (TE)

 

$

26,006.6

 

 

$

446.7

 

 

 

3.45

%

 

$

25,249.4

 

 

$

425.2

 

 

 

3.39

%

 

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

(l) Includes nonaccrual loans.

 

 

 

 

(m) Included in interest income is net purchase accounting accretion of $9.8 million and $12.9 million for the six months ended June 30, 2019

 

 

 

 

 

 

       and 2018, respectively.

 

 

 

 

 

 

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

 

 

 

 

 

19


 

HANCOCK WHITNEY CORPORATION

ASSET QUALITY INFORMATION

(Unaudited)

 

 

Three Months Ended

 

 

Six Months Ended

 

(dollars in thousands)

 

6/30/2019

 

 

3/31/2019

 

 

6/30/2018

 

 

6/30/2019

 

 

6/30/2018

 

Nonaccrual loans (o)

 

$

209,831

 

 

$

204,831

 

 

$

241,681

 

 

$

209,831

 

 

$

241,681

 

Restructured loans - still accruing

 

 

101,250

 

 

 

117,578

 

 

 

152,507

 

 

 

101,250

 

 

 

152,507

 

Total nonperforming loans

 

 

311,081

 

 

 

322,409

 

 

 

394,188

 

 

 

311,081

 

 

 

394,188

 

ORE and foreclosed assets

 

 

27,520

 

 

 

27,148

 

 

 

22,342

 

 

 

27,520

 

 

 

22,342

 

Total nonperforming assets

 

$

338,601

 

 

$

349,557

 

 

$

416,530

 

 

$

338,601

 

 

$

416,530

 

Nonperforming assets as a percent of loans,

   ORE and foreclosed assets

 

 

1.68

%

 

 

1.74

%

 

 

2.15

%

 

 

1.68

%

 

 

2.15

%

Accruing loans 90 days past due (p)

 

$

6,493

 

 

$

20,308

 

 

$

7,941

 

 

$

6,493

 

 

$

7,941

 

Accruing loans 90 days past due as a percent

   of loans

 

 

0.03

%

 

 

0.10

%

 

 

0.04

%

 

 

0.03

%

 

 

0.04

%

Nonperforming assets + accruing loans 90

   days past due to loans, ORE and

   foreclosed assets

 

 

1.71

%

 

 

1.84

%

 

 

2.19

%

 

 

1.71

%

 

 

2.19

%

ALLOWANCE FOR LOAN LOSSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

194,688

 

 

$

194,514

 

 

$

210,713

 

 

$

194,514

 

 

$

217,308

 

Provision for loan losses

 

 

8,088

 

 

 

18,043

 

 

 

8,891

 

 

 

26,131

 

 

 

21,144

 

Decrease in allowance as a result of sale of

   subsidiary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,648

)

Charge-offs

 

 

(9,349

)

 

 

(20,991

)

 

 

(15,499

)

 

 

(30,340

)

 

 

(33,935

)

Recoveries

 

 

2,198

 

 

 

3,122

 

 

 

10,425

 

 

 

5,320

 

 

 

16,661

 

Net charge-offs

 

 

(7,151

)

 

 

(17,869

)

 

 

(5,074

)

 

 

(25,020

)

 

 

(17,274

)

Ending Balance

 

$

195,625

 

 

$

194,688

 

 

$

214,530

 

 

$

195,625

 

 

$

214,530

 

Allowance for loan losses as a percent of

   period-end loans

 

 

0.97

%

 

 

0.97

%

 

 

1.11

%

 

 

0.97

%

 

 

1.11

%

Allowance for loan losses to nonperforming

   loans + accruing loans 90 days past due

 

 

61.60

%

 

 

56.81

%

 

 

53.35

%

 

 

61.60

%

 

 

53.35

%

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

4,286

 

 

$

14,398

 

 

$

1,749

 

 

$

18,684

 

 

$

7,619

 

Residential mortgage loans

 

 

(71

)

 

 

244

 

 

 

(290

)

 

 

173

 

 

 

(214

)

Consumer loans

 

 

2,936

 

 

 

3,227

 

 

 

3,615

 

 

 

6,163

 

 

 

9,869

 

Total net charge-offs

 

$

7,151

 

 

$

17,869

 

 

$

5,074

 

 

$

25,020

 

 

$

17,274

 

Net charge-offs (recoveries) as a percentage

   of average loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

0.11

%

 

 

0.39

%

 

 

0.05

%

 

 

0.25

%

 

 

0.11

%

Residential mortgage loans

 

 

(0.01

)%

 

 

0.03

%

 

 

(0.04

)%

 

 

0.01

%

 

 

(0.02

)%

Consumer loans

 

 

0.56

%

 

 

0.62

%

 

 

(0.70

)%

 

 

0.59

%

 

 

0.96

%

Total net charge-offs as a percentage of

   average loans

 

 

0.14

%

 

 

0.36

%

 

 

0.11

%

 

 

0.25

%

 

 

0.18

%

 

(o)   Included in nonaccrual loans are nonaccruing restructured loans totaling $99.1 million, $105.9 million and $98.8 million at 6/30/2019, 3/31/2019 and 6/30/2018, 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.  

(p)   Excludes 90+ accruing troubled debt restructured loans already reflected in total nonperforming loans of $1.5 million and $1.9 million as of 3/31/2019 and 6/30/2018, respectively.

20


 

HANCOCK WHITNEY CORPORATION

ASSET QUALITY INFORMATION

(Unaudited)

 

 

Three Months Ended

 

(dollars in thousands)

 

6/30/2019

 

 

3/31/2019

 

 

12/31/2018

 

 

9/30/2018

 

 

6/30/2018

 

Nonaccrual loans (o)

 

$

209,831

 

 

$

204,831

 

 

$

187,295

 

 

$

201,646

 

 

$

241,681

 

Restructured loans - still accruing

 

 

101,250

 

 

 

117,578

 

 

 

139,042

 

 

 

162,189

 

 

 

152,507

 

Total nonperforming loans

 

 

311,081

 

 

 

322,409

 

 

 

326,337

 

 

 

363,835

 

 

 

394,188

 

ORE and foreclosed assets

 

 

27,520

 

 

 

27,148

 

 

 

26,270

 

 

 

27,475

 

 

 

22,342

 

Total nonperforming assets

 

$

338,601

 

 

$

349,557

 

 

$

352,607

 

 

$

391,310

 

 

$

416,530

 

Nonperforming assets as a percent of

   loans, ORE and foreclosed assets

 

 

1.68

%

 

 

1.74

%

 

 

1.76

%

 

 

2.00

%

 

 

2.15

%

Accruing loans 90 days past due (p)

 

$

6,493

 

 

$

20,308

 

 

$

5,589

 

 

$

24,460

 

 

$

7,941

 

Accruing loans 90 days past due as a

   percent of loans

 

 

0.03

%

 

 

0.10

%

 

 

0.03

%

 

 

0.13

%

 

 

0.04

%

Nonperforming assets + accruing

   loans 90 days past due to loans,

   ORE and foreclosed assets

 

 

1.71

%

 

 

1.84

%

 

 

1.79

%

 

 

2.12

%

 

 

2.19

%

Allowance for loan losses

 

$

195,625

 

 

$

194,688

 

 

$

194,514

 

 

$

214,550

 

 

$

214,530

 

Allowance for loan losses as

   a percentage of period-end loans

 

 

0.97

%

 

 

0.97

%

 

 

0.97

%

 

 

1.10

%

 

 

1.11

%

Allowance for loan losses to

   nonperforming loans + accruing

   loans 90 days past due

 

 

61.60

%

 

 

56.81

%

 

 

58.60

%

 

 

55.25

%

 

 

53.35

%

Provision for loan losses

 

 

8,088

 

 

 

18,043

 

 

 

8,100

 

 

 

6,872

 

 

$

8,891

 

NET CHARGE-OFF INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

4,286

 

 

$

14,398

 

 

$

24,253

 

 

$

3,205

 

 

$

1,749

 

Residential mortgage loans

 

 

(71

)

 

 

244

 

 

 

(296

)

 

 

(1,055

)

 

 

(290

)

Consumer loans

 

 

2,936

 

 

 

3,227

 

 

 

4,179

 

 

 

4,702

 

 

 

3,615

 

Total net charge-offs

 

$

7,151

 

 

$

17,869

 

 

$

28,136

 

 

$

6,852

 

 

$

5,074

 

Net charge-offs (recoveries) as a

   percentage of average loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

 

0.11

%

 

 

0.39

%

 

 

0.65

%

 

 

0.09

%

 

 

0.05

%

Residential mortgage loans

 

 

(0.01

)%

 

 

0.03

%

 

 

(0.04

)%

 

 

(0.15

)%

 

 

(0.04

)%

Consumer loans

 

 

0.56

%

 

 

0.62

%

 

 

0.78

%

 

 

0.89

%

 

 

0.70

%

Total net charge-offs as a

   percentage of average loans

 

 

0.14

%

 

 

0.36

%

 

 

0.56

%

 

 

0.14

%

 

 

0.11

%

AVERAGE LOANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & real estate loans

 

$

15,081,911

 

 

$

15,062,135

 

 

$

14,794,875

 

 

$

14,542,281

 

 

$

14,380,941

 

Residential mortgage loans

 

 

2,969,746

 

 

 

2,942,396

 

 

 

2,888,261

 

 

 

2,816,151

 

 

 

2,754,292

 

Consumer loans

 

 

2,098,447

 

 

 

2,122,417

 

 

 

2,134,593

 

 

 

2,106,207

 

 

 

2,058,001

 

Total average loans

 

$

20,150,104

 

 

$

20,126,948

 

 

$

19,817,729

 

 

$

19,464,639

 

 

$

19,193,234

 

 

(o)   Included in nonaccrual loans are nonaccruing restructured loans totaling $99.1 million, $105.9 million, $85.5 million, $92.7 million and $98.8 million at 6/30/2019, 3/31/2019, 12/31/2018, 9/30/2018 and 6/30/2018, 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.

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

21


 

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

 

 

Six Months Ended

 

(in thousands)

 

6/30/2019

 

 

3/31/2019

 

 

12/31/2018

 

 

9/30/2018

 

 

6/30/2018

 

 

6/30/2019

 

 

6/30/2018

 

Net interest income

 

$

219,868

 

 

$

219,254

 

 

$

217,433

 

 

$

214,194

 

 

$

211,547

 

 

$

439,122

 

 

$

417,211

 

Noninterest income

 

 

79,250

 

 

 

70,503

 

 

 

74,538

 

 

 

75,518

 

 

 

68,832

 

 

 

149,753

 

 

 

135,084

 

Total revenue

 

$

299,118

 

 

$

289,757

 

 

$

291,971

 

 

$

289,712

 

 

$

280,379

 

 

$

588,875

 

 

$

552,295

 

Taxable equivalent adjustment (q)

 

 

3,718

 

 

 

3,824

 

 

 

4,038

 

 

 

4,095

 

 

 

4,081

 

 

 

7,542

 

 

 

8,044

 

Nonoperating revenue

 

 

 

 

 

 

 

 

(604

)

 

 

 

 

 

 

 

 

 

 

 

1,145

 

Operating revenue (TE)

 

$

302,836

 

 

$

293,581

 

 

$

295,405

 

 

$

293,807

 

 

$

284,460

 

 

$

596,417

 

 

$

561,484

 

Noninterest expense

 

 

(183,567

)

 

 

(175,700

)

 

 

(179,366

)

 

 

(181,187

)

 

 

(184,402

)

 

 

(359,267

)

 

 

(355,193

)

Nonoperating expense

 

 

 

 

 

 

 

 

2,458

 

 

 

4,827

 

 

 

15,805

 

 

 

 

 

 

21,658

 

Operating pre-provision net revenue (TE)

 

$

119,269

 

 

$

117,881

 

 

$

118,497

 

 

$

117,447

 

 

$

115,863

 

 

$

237,150

 

 

$

227,949

 

 

OPERATING EARNINGS PER SHARE - DILUTED

 

 

 

Three Months Ended

 

 

Six Months Ended

 

(in thousands, except per share amounts)

 

6/30/2019

 

 

3/31/2019

 

 

12/31/2018

 

 

9/30/2018

 

 

6/30/2018

 

 

6/30/2019

 

 

6/30/2018

 

Net Income

 

$

88,277

 

 

$

79,164

 

 

$

96,240

 

 

$

83,878

 

 

$

71,177

 

 

$

167,441

 

 

$

143,652

 

Net income allocated to

participating securities

 

 

(1,502

)

 

 

(1,337

)

 

 

(1,691

)

 

 

(1,544

)

 

 

(1,328

)

 

 

(2,839

)

 

 

(2,694

)

Net income available to

common shareholders

 

 

86,775

 

 

 

77,827

 

 

 

94,549

 

 

 

82,334

 

 

 

69,849

 

 

 

164,602

 

 

 

140,958

 

Nonoperating items, net of income tax

 

 

 

 

 

7,966

 

 

 

1,465

 

 

 

3,813

 

 

 

12,486

 

 

 

7,966

 

 

 

18,268

 

Nonoperating items allocated to

participating securities

 

 

 

 

 

(134

)

 

 

(26

)

 

 

(71

)

 

 

(233

)

 

 

(134

)

 

 

(342

)

Operating earnings available to common shareholders

 

$

86,775

 

 

$

85,659

 

 

$

95,988

 

 

$

86,076

 

 

$

82,102

 

 

$

172,434

 

 

$

158,884

 

Weighted average common shares - diluted

 

 

85,835

 

 

 

85,800

 

 

 

85,677

 

 

 

85,539

 

 

 

85,483

 

 

 

85,810

 

 

 

85,451

 

Earnings per share - diluted

 

$

1.01

 

 

$

0.91

 

 

$

1.10

 

 

$

0.96

 

 

$

0.82

 

 

$

1.92

 

 

$

1.65

 

Operating earnings per

share - diluted

 

$

1.01

 

 

$

1.00

 

 

$

1.12

 

 

$

1.01

 

 

$

0.96

 

 

$

2.01

 

 

$

1.86

 

 

 

(q)

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

22