Hancock Whitney's Q3 2024 Earnings Showcase Strong Growth

Hancock Whitney's Impressive Third Quarter Performance

Hancock Whitney Corporation (Nasdaq: HWC) revealed its financial results for the third quarter of 2024, showcasing robust earnings and strategic growth initiatives. The bank, headquartered in Gulfport, has demonstrated its resilience and commitment to stakeholders during this period.

Financial Highlights of Q3 2024

During the third quarter of 2024, Hancock Whitney reported net income of $115.6 million, equivalent to earnings per share (EPS) of $1.33, marking a commendable uptick from $114.6 million or $1.31 in the previous quarter. This growth is even more notable compared to the same quarter last year, where net income stood at $97.7 million, or $1.12 per diluted share.

Key Metrics and Indicators

The key highlights from Hancock Whitney's third quarter results include:

• Net interest income rose to $271.7 million, showing an increase from the prior quarter.
• Pre-provision net revenue (PPNR) reached approximately $166.5 million, reflecting effective cost management strategies.
• Loans showed a slight decline of $456 million, estimating an 8% decrease from the prior quarter, attributed to strategic shifts in lending practices.
• Deposits experienced a modest reduction of $218 million, maintaining a healthy deposit base amidst market fluctuations.
• Capital ratios remained strong, with the Common Equity Tier 1 (CET1) ratio at 13.79%, reflecting solid capitalization.

CEO Commentary

In a statement, John M. Hairston, President and CEO, remarked, "The results from the third quarter affirm our company’s strength and stability. Our focus on enhancing profitability was evident with another quarter showcasing a return on assets (ROA) of 1.32%, alongside further Net Interest Margin (NIM) expansion and increased fee income. Our commitment to effective risk management resulted in a decrease in non-accrual loans, highlighting our prudent underwriting policy. As we celebrate 125 years of service, we continue to prioritize our shareholders, clients, and community engagement.”

Loan and Deposit Trends

As of September 30, 2024, total loans were approximately $23.5 billion, reflecting a strategic decrease primarily due to higher payoffs in commercial real estate and a targeted focus on granular loans. Average loans for the quarter reached $23.6 billion, indicating management's expectations for stable loan balances until the end of 2024.

Total deposits amounted to $29.0 billion as of the end of the quarter, with a slight downturn from the prior quarter attributed to seasonal factors affecting interest-bearing public funds. Notably, there was a reported rise in interest-bearing transaction and savings deposits due to mid-quarter inflows, demonstrating ongoing consumer confidence.

Asset Quality and Credit Metrics

The allowance for credit losses (ACL) stood at $342.8 million with a coverage ratio of 1.46%, signaling a prudent approach to asset quality. The bank recorded net charge-offs of $18 million during Q3 2024, representing 0.30% of average total loans, signaling strong credit management in a fluctuating market environment.

Looking Ahead

Management continues to project 2024 period-end loan balances to remain stable. With their solid capital ratios and a culture focused on diligence, Hancock Whitney is well-positioned to navigate future market dynamics while maximizing shareholder returns. The bank’s commitment to stakeholder value and its robust financial positioning renders it an attractive institution in today's competitive banking landscape.

Conference Call Schedule

Hancock Whitney management will conduct a conference call on October 15, 2024, at 3:30 PM Central Time to discuss these results further and answer questions from analysts and investors.

About Hancock Whitney Corporation

Founded in the late 1800s, Hancock Whitney has enduring values of Honor & Integrity, Strength & Stability, and Commitment to Service. They provide extensive financial products and services across key sectors including traditional banking, small business banking, and mortgage services, catering to a diverse clientele in various markets.

Frequently Asked Questions

1. What are the key financial highlights of Hancock Whitney's Q3 2024 results?

Hancock Whitney reported a net income of $115.6 million, or $1.33 per diluted share, a growth from the previous quarter.

2. How is the loan portfolio trending?

Total loans decreased to $23.5 billion mainly due to higher payoffs on commercial real estate loans.

3. What measures has the company taken to manage credit risk?

The company maintains a healthy allowance for credit losses at $342.8 million, showing a solid coverage ratio.

4. What was the company's return on assets?

Hancock Whitney achieved a return on assets of 1.32% during the third quarter.

5. How can investors learn more about the company?

Investors can access further information during the upcoming conference call scheduled for October 15, 2024, at 3:30 PM Central Time.

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