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.”
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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 | |
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(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. |
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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.
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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.
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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%. |
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