Loading...
•
Mar 31, 2020
Hancock Whitney Q1 2020 Earnings Report
Hancock Whitney's first quarter results were impacted by a reserve build due to COVID-19 and lower oil prices, resulting in a net loss.
Key Takeaways
Hancock Whitney reported a net loss of $111.0 million, or ($1.28) per diluted common share (EPS), for the first quarter of 2020. This loss was primarily driven by a significant increase in the provision for credit losses, which included $246.8 million related to COVID-19 and declining oil prices, as well as $9.8 million related to write-offs of equity interests in two energy companies. Despite the loss, the company's underlying earnings showed strength in loan growth, net interest income, and fee income, with solid capital and liquidity levels.
Allowance for credit losses (ACL) to total loans strengthened to 2.21%.
Capital remained solid with a tangible capital (TCE) ratio of 8% and regulatory ratios well in excess of required levels.
Loan growth totaled $303 million linked-quarter, and DDA deposits were up $429 million.
NIM declined 2 basis points (bps) linked-quarter; excluding purchase accounting accretion (PAA), NIM was up 1 bp.
Forward Guidance
Given the uncertainty related to COVID-19, the company is suspending all previous guidance, including near-term, 2020 or 3-year Corporate Strategic Objectives (CSOs).
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...