Hancock Whitney (HWC) 19 Jan 222021 Q4 Earnings call transcript

Company Profile

Participants

Trisha Carlson	Investor Relations Manager
John Hairston	President and CEO
Michael Achary	CFO
Michael Rose	Raymond James
Brad Milsaps	Piper Sandler
Brett Rabatin	Hovde Group
Jennifer Demba	Truist Securities
Catherine Miller	KBW
Kevin Fitzsimmons	D. A. Davidson
Christopher Marinac	Janney Montgomery Scott

Call transcript

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Operator

0:08 [Technical Difficulty] today's conference call, Tricia Carlson, Investor Relations Manager.

You may now begin.

Trisha Carlson

00:31 Thank you, and good afternoon.

During today's call, we may make forward-looking statements. We would like to remind everyone to carefully review the Safe Harbor language that was published with the earnings release and presentation and in the company's most recent 10-K and 10-Q, including the risks and uncertainties identified therein.

mind speak forward date only they made. in by statements on keep were Whitney, Hancock as should that looking any made which You of the

of forward-looking you and current the not to statements. project inherently obligation accurately results those cautioned remarks or undue limited. are developments place the are are of or Hancock differ such predict statements future that is As or predict ability of set guarantees performance from measures. results economic and no expectations effects undertakes update performance not We implied statements. or understands, Hancock Whitney’s believe contain actual to reasonable or the rapidly everyone results by on and reflected materially is evolving XX:XX assumptions plans on changing. forward-looking financial the Some market Whitney reliance X:XX to and revise our economic forth any any Non-GAAP environment forward-looking based or our strategies or in statements could forward-looking but

on the website. our call reconciliations X-K find in GAAP are measures in tables. release posted slides and most financial also with comparable can to The link our Relations the webcast presentation You the earnings Investor included conference

and will call CFO; the call Chris X:XX these John turn Ziluca, are X:XX We reference Credit will CEO; slides to today's now Achary, of Chief call. Participating Hariston. John and in some in today's Michael Hairston, I over President Officer.

John Hairston

year us today. happy X:XX Thank joining you, Trisha, everyone. Thank for new you and

XXXX, more while a was quarterly in net million first PPP dollars activity, of a record to initiatives loan with company increase As per over slide quarter specialty million progressing, positive deposit both a to in economic fourth finish share Revenue XXXX markets. are to results an $XXX $XXX operating pleased over in total of we’re earnings to million offsetting very in loan XXXX as over utilization Annual you forgiveness. time growth, can $X.XX the compared million grew pleased $XX.X increased X%. the net revenue $XXX growth report totaled or and and the than exceeded pre-provision, for and expectations. just loan improving core to are lines We X:XX in The were loss on footprint higher assets growth produced report $XX billion in that year. line business, of bankers reflecting in contribution across X, and newly growth see growth strong in

we our the around on As historically new compared low $XXX class. NPLs greatly X:XX loans and to grew we added X% XXXX how XXXX during year, a performed For are portfolio XXXX. With levels, $XXX in our recapture metrics core best note, detail a returning slide improved, allowing bankers loans XX to the million during to are loans or to times, has net and from and today unprecedented charge declined the pleased ago. XX% clients, and over down are or us offs in year at Criticized credit commercial million compared in million are $XX XX% among side in fourth our these quarter. the X% to continued the that expectations are from of typical out results. quarterly on pandemic I'd seasonality our point X% with in growth impact reflected also in XXXX like markets the despite our for to

our a a from capital X% Our the end. with TCE resulted pandemic. company in target revaluation sheet of beginning under remains little Some quarter. unchanged virtually at X:XX the and capital beneficial CETX our earnings, at creation the reserves of of growth enjoyed balance this XXXX at the strong OCI added The year solid ratio in ratio outsized

with Adding funds. during end year deposits quarter, total the During deposits that Ida billion saw X:XX efforts pre-pandemic and noted we deposits for related seasonal half XX% including strategic the $X.X a the related during us The on $X put to XXXX de-risking corpus coupled almost or in year. slide organically grew started previously to on funding billion XXXX we XX, objectives announced CSOs work achieving stimulus efficiency and and to a updated about ratio. path the Hurricane

moment ongoing looking we are clients, momentum a for their communities brighter the other as to further comments. to as from I of to to take XXXX. and to call hopefully each to forward We to thank before I'll Not a and Whitney turn pandemic and begin Hancock carrying for momentum our colleagues finish X:XX to over Mike the clients build through want team from my worked as associates only it company emerge XXXX. our a perseverance strong today's their environment. our now dedication for

Michael Achary

items net the came Good non-operating non-operating at $X.XX storm quarter mostly these excluding strong finish included the was XX:XX dollars for income were the pointed $X.XX reported everyone. which Thanks, As Results with John. EPS afternoon, quarter strong of in share quarter. the items, a a company. quarter per were out, the for of to for were EPS linked $X.X million $X.XX flat essentially with were year certainly related, PPNR John in X:XX record results

the few a that So, themes important like we drove I'd results. to cover think

expansion. balance sheet First, was

expense $XXX quarter. loans billion our some forgiveness putting liquidity, theme major $XXX indeed just PPP into bonds, major increase fourth led or Needing billion coming by runoff under on even this consecutive impactful of liquidity achieving the so XXXX. have is funding that quarter efforts work few with and operating the the certainly The keys deploying six ratio below improvement million. million in comments expenses in significant million our of mentioned last efficiency established at credit. make another with The goal major X:XX average continuing among basis, quality by quarter-over-quarter in for quarter growth fourth success a of for to The the the our nearly set we year's class. one million and improvement EOP quarters foundation to coupled And core was excess grew in past quarter, to the a $XXX and quarter. to goal our loans, XX:XX credit goal best $X deposits deposit in Moving been to our an $X metrics and our efficiency for with now deposit was in XX% fourth quarter XXXX. theme $X.X in As

average been would points about down a of significant Otherwise, compression. basis Our The the would NIM points, NIM previous which was down $X loan points basis of for with impact a quarter. basis X.XX% XX been in impact consistent liquidity XX increase for billion quarter's four and was the responsible the was excess have guidance. have the our NIM linked

Has to As included XX. talked loans rates deploy XXXX and continues, bonds we are about and to mentioned enhanced efforts ongoing. rising on some interest rate in excess sensitivity slide liquidity disclosures

NIM overall opportunistic we about current as well finally, to details excess environment, swap forward of detailed our the deposit note as to pace rate slightly on and increases XX. disruption, expect position, updated have to just loan built Any guidance, CSO an back with price remain rate our flattish accretive shares our levels any XXXX At liquidity the loan point, repurchased as call do on of well historical we regarding our deployment. and our information. expanded under the to buyback until hedging authorization and increase John. beta slide begin X:XX with market XXXX turn X:XX this Please into today's average down upon XXX,XXX is $XXXX. that in Certainly, growth rate widen. X:XX Based floors, were will do then quarter's in in is as dependent And will mid-year guidance. the we from very rates see be You'll and that we not I'll

John Hairston

X:XX Mike. you, Thank

questions. just Let's for open call the

Operator

XX:XX Instructions] The you. Raymond Thank Please comes Rose first question from James. proceed. [Operator Michael with

Michael Rose

I you wanted good Hey, start to afternoon guys. XX:XX on… Hope well. are

John Hairston

Good afternoon Mike. X:XX

Michael Rose

was that on into really about which which growth, loan be ex-PPP it what increase the it to and Was what some it on think we Thanks. core us above? all mean, annualized, expect off in of $XXX was the kind dig to color I afternoon, XX% billion about new Good year, XX:XX next pickup I should be Can this was you up looks utilization? start looked T&I Q-on-Q. to we wanted up as but C&I, quarter, drove strong give just clients, about and

John Hairston

talk first and XX:XX the utilization Yes. part I'll question. about get the line Good second. Michael. Thanks, then

So, there, robust our business as but overall in They slab activity it. The the really certainly then shows loan west if growth, we helps. production specialties. with look very and downs the of we geographies, was anticipated large equipment the the at rates terrific expected. still than least enjoyed and for the quite markets or pleased across and and Central and quarter. We're finance across the core were strong healthcare production not east, light you were as and lighter [Indiscernible] that all Pay

production loan a year overall at than commitment commitment a in bit lever So, was level better XXXX. pre-pandemic last rather our – good

all cadence shop XX better easy quality areas. push much in normalize we've the added, asset to its I early of which tick, bankers end XXXX, So, our stronger. in think we've that better front the was And markets reflects over wasn't spread to that both XX and the supporting better a an

was we've tailwind XX at utilization as really also of in to a since out increasing right When a drop. a of our then, credit under to over XX:XX little the quarter just quarter in that three And for QX. XX%, utilization of up first XX% you utilization that. get a reminder, XX the pretty big reached little team they doing pre-pandemic quarters So bottom goes line so then leading a lot of a and the fourth seen was and

expect not QX, was And increase certainly and up cover additional continue Michael going questions that XX:XX at quarter and certainly, utilization as over that on time. and every looking but for? the would a be see year that to any is what tailwind, you when I were would utilization it So, might we looking see upward big and through certainly an

Michael Rose

helpful. XX:XX No, think I that's

to Just expenses. a big switch

now would bankers quarters to be year, half you inflation. hired is X% year, down guiding the core wage another in you this looks are some like looks expenses of I back think more. down are of I we a those row, that seven keep all in the hire expenses expect like you hearing guys obviously It

the wage the savings clearly incremental on where everybody. you in cost down can are rise just inflation are for there's coming, technology break cost So

what that X% if us can Thanks. percent you walk decline? So drives just through

Michael Achary

this Mike. Michael, Well, XX:XX is

move much else. a of good for the in into think runway I think quarter really XXXX. expenses fourth landed we as I as is we We've XXXX, with where established pretty that it as anything

talked down expenses we've an said, between around and will X% I think kind costs as or basically quarters in four like into costs we continuing strategic just next we're to as cut cutting more the and We've annualized become interested before, which is to really be it continue on expenses So basis I XX:XX so for about XXXX. of many not to we've really times through things so procurement, level think and or that to help only XX profitable. XXXX us move of guided

that into investments back within think to in it room XX, is base done our I we've work continued create the expense company. but really for

of investments guidance spectrum and specifically we and for have and of to the then the inflation wage to all XX. of as then higher and for like given inflation technology of accounted things in new course, the certainly we've primarily second did So continue in half that those we've bankers we'd XX we

So think just point I execution it's really from this forward. about

Michael Rose

give maybe or the provision, goes especially expectations in around of or any can that? XX:XX going I CSOs, high broad high exclude And what takes, around the XXX there's range, for are any end of some growth if the the color just helpful. out expectations not on also nonrecurring you're NII ROA items, strokes some of And and that's to but loan the terms puts provide understanding target guys ROA a right? mid about like looks kind at then an couple years negative of into if you you you that, to Thanks. of have color very Okay, in some that can

Michael Achary

Yes. XX:XX

if top slide of half that So, to you XXXX. really go XX here, slide. to Is that’s our the guidance overall

you back an each to if in we and around XX the think unless and out look we between XX% for and in XXXX, when specific at remains pretty XX% for math should of information the most as we're part, do most PP&R PPP have both of XXXX. items that of the guiding those impact actually XXXX. think kind our what straightforward I be So question in to, aside, We're the grow of I any you PP&R core loans looking that

well. So

of obviously, of things see that took a we go with XXXX slide items what's the XX:XX that into the One bottom CSOs is did the So table unusual really you built XX. XX the be at repeating. in of CSO of at slide part them bottom XXXX, to we that's the believe on going and aren't adjusted for forward [Indiscernible] basis. We really the

impact So provisioning, impact out then that the loans PPP in of specifically, the out also the we XXXX backed negative backed the we claim one. and of did in

And so you forward we're do years on down the XX adjusted see a when at of you go kind three road. basis, that, and arrive you then projecting an but CSOs for

Michael Rose

[Indiscernible]. helpful. Very XX:XX

John Hairston

XX:XX Yeah. Thank you, Michael.

be into to economy their rate a said obviously to increases rate an the in and as be, environment his economy, right Obviously Just in [Indiscernible] the comments Mike essentially current built are the run they're prepared XX:XX credit as change add would that determined the be rush? environment not CSOs environment. would beneficial I in remember if on, any

Michael Rose

Appreciate Thanks XX:XX it. again.

John Hairston

XX:XX Thank you.

Operator

XX:XX with Please you, Piper Rose. Sandler. question comes Milsaps Brad The proceed. Thank from Mr next

Brad Milsaps

XX:XX good noon. Hey

Michael Achary

XX:XX Hi, Brad.

Brad Milsaps

Mike, wanted at billion loans billion think start specifically, and then at I balance the end to the PPP liquidity maybe with that XX:XX sheet $X.X quarter will another taking my I for $X.X back. funds and come Thanks the around fed of of the questions.

and in portfolio the like cash in you the about XQ alluded mind of it that do in period $X.X looks of didn't that bond investing a the the given bond in you a temporary some sheet, average, your the that the higher, on the kind based in in that in deck, on started think insurance curious deposit vis-a-vis, late had I go just could to plan that how of book just of balance quarter funds? curious you be if lot the number the dollars public XXXX, investment versus proceeds lot to growth the might think of kind to quarter, about your

Michael Achary

glad we Yes, question, XX:XX Brad. to thank the for you and

you forgiven with we top So, then $XXX better mentioned half as $X.X part on the excess XXXX. and kind billion of PPP first million obviously, we're loans starting of that, year the of of have of that of be in at the supported certainly will

as ability being So deploy year, that through extremely about things kind has excess obviously the go important to we've our we the of to talked liquidity.

foremost first and loan I think his growth.

in been the of able growth related So, we've loan loan hit an over the certainly three in achieve this the to excellent that us to the loan that document. growth XXXX, that around to last momentum position in growth guidance we've quarters I think puts given

the an on that's X% end X% period to So basis.

the preference XX:XX into we're liquidity $X.XX kind the bond looking the really fourth book by of intend beginning and with of of and loans so $X.X about $XXX guiding that's you do. at in talked So obviously, $X.XX translate we first quarter, the comes what was for quarter, we that billion that's where quarter between excess that's If that million from. billion that portfolio the loan next about year. growth in to what to had to last Related deploying bond terms dollars is growing

yields that specifically sheet fourth the of think points basis the the and is reinvestment that excess each XX-year, we quarter, whether the certainly model, and growth fund had the go we'll will if For of XXXX, evaluate XX:XX deposit what number change achieved liquidity every that the managing with related Certainly we to be your might think as well, around and yields at the that's available in I be, was So getting balance billion. we go something certain really about on and reinvestment today's or bond that that the to bond quarter about be year. then $X.X XXX from excess than be I use runoff in better have we how year, then certainly I XXXX. which think through we how activity will specifically could liquidity that question That the kind loan upon through kind depending continue that about as deploying in would certainly again, to certainly any answered portfolio. the certainly so. portfolio we look we're what

Brad Milsaps

of of helpful. improvement. about of our kind XX:XX mix Is kind I'm slide current curious, so get stuff as And the new I the Very you. on Great. talk was hopefully follow-up fixed sort And you your sense book is of year? to is new mix? think the to loan reflect X how higher percentage you're back move rate helpful. from and a Thank a yield. is good that on putting That's the it bottom continue of throughout wanted it reprice see rates more guys you variable? – mostly Do the of one that where production or you'll kind there XQ, Just, it can

John Hairston

is XX:XX John. with I'll that. Sure. This start

two In the was for QX, wasn't The really bps much. to at the driver page. the It rate mix was was you mostly would growth, difference really it have we variable that occurred it suggested. like XQ if which left terms of we of you it and that the that side though loan as environment be more markets your Really at of growth what sources delivered in of all, mix. the XX core improved on so primary XQ of the look the in

higher strategy. in market. We in a risk little level no a just there drive real generated of simply right core specialty, it's was the so in yielding, higher percentage then will mentioned net the Just no and the total towards markets core paydowns a change the less had growth better mix is number side production appetite, a in and the regions the higher and change that

more I going be happens, that anytime bank rate. to to to new that's beneficial mean, So new money,

only So question those answer anything occurs would to several the your well quarters, for to bodes credits. that extent that to starting or like next the That ask the in clarify. in you

Michael Achary

XX:XX production It was about And think fourth in mix then two variable, speaking. the the about asked one-thirds Brad, the of quarter, roughly you thirds I fixed.

that So, in rates for certainly I future. rising us sets up the potentially think

Brad Milsaps

queue. I'll appreciate Thank it. guys. Very I in helpful. Great. back XX:XX you really

John Hairston

XX:XX You you. Thank bet.

Operator

Milsaps. from Group. XX:XX Thank proceed. comes you, with next Please Hovde question The Brett Mr. Rabatin

Brett Rabatin

good Hey, XX:XX everyone. afternoon,

John Hairston

XX:XX Hi, good afternoon.

Brett Rabatin

the about all as look number and the sensitivity. points Wanted we back XX the if for for I on expectations the basis just go media. relates talk and margin to, XX:XX and gradual and Maybe just to first slide appreciate enlarge the color X.X% at it X.X for you XXX

could XQ, I think to the in hikes, margin half the half in the about if had public reduction it back seem you're for the assuming like repricing guidance a expecting curious you liquidity us year. the sheet, year? if what Fed I we is having path, about the me your but three margin bond the the year, be does throughout give maybe raise and you're seasonality March doing the deploy. that of in and balance I on path good some portfolio in It and your would like back to the and you're on related would seem was would think funds that pretty note the in the to some know particularly thoughts of

Michael Achary

we call guidance and of in increase of we're this and really is seen But of rate a and earlier, about every that in deploying then the for get as we absent hikes and of deposits of we that both notice about we certainly see pretty notion second deposit begin couple the about side, and can does liquidity flattish primarily this kind in secondarily have XX, the total certainly do then like grade good half mentioned loans kind XX% last excess we And from XX:XX certainly looking yes, for information think widening into any is Brett, on it's and is did about that the that's historical each and rate into bonds. our It's but quarters NIM widen time, comes to the and XX%. really made the primarily had more of loans, and next day, year and rates Yes, if risen giving really loans the of Mike. the bottom this you'll actually I this on that that's beta that from more year think deposits. I certainly the environment you certainty

then XX:XX point, of So, again, I we've if year way accretive those the see talked rise the able this deployment the I translate rates similar specifics the point, the might I our So, sooner but add of the be that's think impact into to think and initiatives be pretty specifics, cumulative without that the to this be. guidance, half begin whole this type of lot of for year, not numbers on that any certainly the pretty giving than would our kind of and of with can about, certainly I a betas at impact the will it's at we'd then know in think back to NIM. consistent but discovery

John Hairston

XX:XX been PPP I'd is impact terms PPP of every the to number quarter, really run the that only it's is him, occurs like year. that you there's second have, the NIM a office the add as contra immaterial the The this to it John. note seems if And a thing in half been that

of paydowns is inputs the the cap begin those has have expected if rates PE on So lot of on but up that growth sources for if in impact of and at of rates Difficulty] take – two to period of multiples of it, guidance some us. others a been Jennifer ended to other inflection outs, parts, different paydowns, primary loan of [Technical move X% the which moving of X% then one included

would really a to to impact least begin having on those I expect significant at not You'd diminish. production.

lag the go in thirdly, secondly, now, just that It's right XX:XX see up on rising we of enjoy and through is the could hard absolutely loan we benefit I to more would And paydowns betas year. lines. a predict we'll mentioned terms to betas be what NIM environment, but in So, of diminish. utilization rate getting to think then deposit because we're

got number we might it given the [Indiscernible] all work pretty I the think we've tight done. is that expense as it

an balance NIM. a is So the to the what and happens of chance of going sheet date I upside more revenue think be in probably because

Jennifer Demba

XX:XX Yes, agree, John. I'd

The side, wage on investments inflation XX:XX I we're around inflation. certainly as do expense certainly if with the assumptions then down and certainly think at little in significant mention a more of to puts risk. can bit of would in but we see it have expenses. this on but We're have of this to certainly, as and I to and a kind might as lag predict those project environment, off. just all any that our comes on year this run risk would flat of be saying, goes it I bankers, that a more describe when risks the erratic of I to and or say would you we that outflows do pretty, at this It we other there lots deposit hire counting been that a I think excess at point, rates low would expand but or category that kind last increases us some hard whereas Deposits liquidity this kind degree, wildcard deposits. some without that occur were rise, also can point, side position, just guiding

for year, for I that in so just risk. plan our playing few all things think out next be terms items of could those we've perceived as a accounted

Brett Rabatin

XX:XX Thanks so much.

Jennifer Demba

Brett. XX:XX you. Thank

Operator

next question Catherine XX:XX Thank KBW. from comes Demba. you Please Ms. The With proceed.

Catherine Miller

Thanks. XX:XX Good afternoon.

John Hairston

afternoon, good Hi, XX:XX Catherine.

Catherine Miller

goals. follow-up CSO one the Just on XX:XX

other where and we go are would that or kind this, to that imagine kind or or growth in flexibility feasible rate a As your just a year that offsets to of CSO changes in environment, I you higher kind of environment, expense XXX is we rate Will growth could offset continue next that kind or through a of reflect spread lot an hikes. than environment kind new of much there's XXX the your give see vary objectives two, move environment? in of other you higher to because update higher we

Michael Achary

And at basis. Catherine. typically Good typically publish CSOs, question. we XX:XX on we those least when and year the again, road, down there are Yes goals update three an our annual

CSOs So, expect I a the we'll as we now. go do to us through would I XXXX. know that from don't that update year

probably kind the that's basis. think our of update for just impacts increases both actually as I XXXX, will CSOs what external. in on of as go we on the as through what plan be we little guidance did think we a be, circumstances XX:XX we'll dependent now a I game but occurs rate would what those general to and In terms annual an on year, as based the those think update well of

John Hairston

and XX the is the given baseline XX:XX the that detail environment better a all page of to the give Catherine, building so you to impact do. maybe this to up pretty is you the is purpose John. straightforward what of try should you going and what shared estimate based model The on only rates just loan quickly looks today, thing be think that think I'd on what is Mike add after to on balance sheet the deposit what go how betas both of it blocks given to like depending market's for what

detail and the all the March flat, pricing we really we So, could try was do think CSOs give and as why as whole that [Indiscernible] rate much helpful. for days are increases the recognized that math, and these details as to we I we markets shared

Catherine Miller

sensitive amazing think that It be? what’s through could any much maybe ups two on, guess more, so All in, I of if and come trying rate do to we margin that and want invest about change your the XXX to was think going upside definitely objective, if ROA can I I you assumed get shows, and XX:XX you be think called how than midpoint kind expense more to sudden, think that Yep. about is you of like off ROA? I I just if hikes just just kind you and there to they’re Because midpoint to do without just significant that and hikes are goals to you be is we right? your asset XXX get example, you how there's the your and upside rate objectives for pretty how to it hikes where how may four to upside putting that within you're that's trying much to may on really think hikes think if rate just you want get to, there sets have of expanding is just I cute kind, didn't was six

John Hairston

are Yes, all XX:XX to those think right things the about. think I

The we fall process notice four and certainly late pick planning are look rate we expecting now the or or three probably anybody our increases really potentially XXXX with fall, here, is other was a thing of begin when in number.

dramatically has change, quickly in in pretty as we externally things know and if environment both the changed so. the and can pandemic pretty So, manner internally or that

Catherine Miller

you for the it. XX:XX Thank Very details. Got so much helpful. all

John Hairston

Catherine. so you You much. Thank bet, XX:XX

Operator

question Ms. A. you Miller. Kevin from Thank D. The Davidson. proceed. Please next with comes XX:XX Fitzsimmons

Kevin Fitzsimmons

Hey, XX:XX good evening everyone.

John Hairston

evening, Kevin. XX:XX Yeah. Good

Kevin Fitzsimmons

continuation X.XX%, still asked to ones, couple quite XXXX, answered. and have a modest for Just see strong ACL The at the I about loan the quick reserve been most here guidance talks of questions ratio of XX:XX releases. of

so, try help what that reserve quarters there where yeah a in update it. us for the kind but given budgeting, three that kind or terms define us hard I it's when that in end, through can us So or the of using would I of just you you're just that you mean, and point been and you that you've get refresh what more done things Thanks. modest or to if might reserve of last how might to continuation you piece you've releases to know thing settling on be as

Michael Achary

XX:XX too We glad Kevin.

$XX So first really reserve question, quarter, been related our past to but million yes, quarters, have quarter. releases for two last your the this $XX

over So down well certainly quarter. under offs XXX,XXX charge just I this that's pretty think, million consistent, last as from and $X and quarter,

this at at might the I there portfolio, of continue pandemic and continue. those offs, related modest at reserve variants. into not when The microeconomic or Certainly, with kind going lots year least really what's go So which say level. be future of happening program of that that. we level releases does environment, go may, least to on that various of It of our factors are which think will on surges own basis forward of a about but the charge assumptions what's something

So each all very we carefully go that the quarter. up those kind what things and do of we around end every reporting modeling into

was day is Related and question what to your that question, in really the of these you of points. to and will again last would just one couple quarters, the point to but provide would go next to and that at, the and to quarters. neighborhood the about in at settle of couple our done probably basis suggest that certainly, some guidance XX:XX look it the reserve quarters given if part next So again, we CSO, think of at releases context, past we've information not quarters in to XXX this levels of suggest it's good back we've that we last couple I answer that is for

just of the XXX down in the kind for of we XXXX to adjustment that you the basis goes under If points. portfolio make energy that second quarter sold,

get to it's difficult goes now. maybe again, level just intent think that's to the really multitude XX:XX contacts, to to for to and aim eventually of build, depend aim I probably to provisioning on of of the those call that we begin will then What the too levels. really a get kind just settle right to zero before aim we make it's that suggest is So out the not variables

a So, around in we've magnitude that again, of done couple reserve the up of for leases – quarters of the the is last guidance kind the for couple wrap quarters.

Kevin Fitzsimmons

and and the dip XX:XX That's Mike. you Is and helpful and market we it guys in just here saw approach stepped disruption Okay. in quarters? ratio, as to few to how less took active on, mentioned of advantage stock our next one the buybacks And shares that expect TCE the given done the Thank has likely better. you repurchase quick you. follow in

Michael Achary

XX:XX so. Yes. I don't think

that that'll the saw day today. think future fact a the us, for fourth basis, and in hindrance to that with lot The TCE life that, we volatility market us that example example disruptions magnitude hindrance where is our I doing a for a now. market major in on the Isn't a right from on depend ratio on again you it quarter. is the did prevents quarterly certainly repurchases

So again, quarter means. we'll the think example that continue we to I how fourth what good what kind a opportunistic be approach buyback again, the was of and

Kevin Fitzsimmons

much. very Thanks Okay. XX:XX

Michael Achary

XX:XX you. Thank

Operator

Christopher The proceed. Marinac you, question XX:XX next Janney Scott. from with Please comes Thank Montgomery Fitzsimmons.

Christopher Marinac

XX:XX Thanks. afternoon. Good

capital look on follow that how capital able Mike throws and think basis? it, or distributions XX% to you want you're the a on years. for does do what Just up of kind on return the the John common, to cumulative hit back if of out beat three mean off, that and tangible that

Michael Achary

I'll and organic to to support common something we basis is and off capital our bit. first to the evaluate for think on and board. support it foremost that's start add capital quarterly then earning increasing and we look like we a that, color if really Well, certainly at dividend certainly with and begin continue our we our XX:XX for growth potentially John dividend a now, priorities, after really But our like about would grow things loan

right So, nothing of in could this is little think that's terms and buybacks as go at look be opportunistic bit buybacks. I then to potentially year, certainly and we we planned certainly but a through intently something now, continue more

forward a increases targets deployment valuation bit that the certainly that your further, bit hypothetical, So I right payout kinds be and again, at based if levels is think dividend road look ratio these significant eventually of of think I point, that that more to levels about our go goals is doing these where little or that now. we the again, achieve question of certainly really go we'd and think levels on at potentially at lead to on profitability, But impactful. achieving about then maintaining things of capital if us I maybe maybe really a might capital XX:XX is and kind down certainly to a think buybacks of looking way little building do But levels something goals of like continuing one dividend all basis. these we'll higher able of and are we at that I the is our

Christopher Marinac

there Great. helpful. necessarily bound in just not but XX:XX as a on picture? XXXX, is time That's guess lower passes any I in related, the big just CETX ratio

Michael Achary

XX:XX terms below. that we Lower level to want go band would of in a

Christopher Marinac

Yes. Correct. XX:XX

Michael Achary

that again, it a this we'd is and really right ratios to I level. I continue at tier lower would we, our look XX% like where so we yes, like building being I in no it called now, be XX:XX I around we've mean, common to, way mean that think X than

I Difficulty] probably parameter. think [Technical it's a good

Catherine Miller

[Indiscernible] pre-COVID that question we returning statement of that more of XX:XX kind had conservative just line. the mortgage last. saw think the a within guide through year or charges maybe flat for you a be downside? And Kind this trying guide taking more a have we pieces. is of on to on I Risk to on view the that are levels over Is about to service that,

John Hairston

boom one mortgage really expected is at XX:XX the refi were simply We the down and and decline and year-over-year that at was QX big in rest right Sure, least us. it In a take business in a it's although then secondary now, a the management the the good blend think first I anticipate was rates bleed year. quarter production of and little bit just of to it business. because the stabilization refi one kind Catherine of big put for if some in is even is uptick guidance question of for

that would a and be that’s the – tailwind on on that hit So side. the headwind headwind

to on well complex. continued reduction you get really related once outperformance degree the mutual to past then merchant card the is upside anything fees some the Our fees, business to sole and outperform from fund card ventures

rate So little gives change put better the obviously make those a It a push, clinical that. altogether, you or when little you but it it can environment worse. a

to calling bit a could the together, roll we was together. yield moving little lines But we just the a the and description focused. it we’re came being up an So to that get better certainly, upside if to math than way flattish got the are environment where push

Catherine Miller

XX:XX Okay, great. Thank That's helpful. you.

John Hairston

the you for You XX:XX follow-up. bet. Thank

Operator

Ms. I no XX:XX Thank to additional for the are like conference pass at other you, remarks. this back questions Miller. would Hairston John to time There over and waiting

John Hairston

we on side have safe. on the to be Everyone see attend very parts day our in the appreciate my for Well. friends and for our moderating certainly are much XX:XX us you sell [Indiscernible] hope thanks side and Thank great of year. to this and a choosing call sometime investors road all to the

Operator

XX:XX Corporation's rest Goodbye. and That your of your Quarter participation you Thank day. enjoy concludes for Fourth Call. XXXX the Hancock Whitney the earnings conference

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