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Mar 31, 2022
Hancock Whitney Q1 2022 Earnings Report
Hancock Whitney reported earnings for Q1 2022.
Key Takeaways
Hancock Whitney reported a solid first quarter in 2022, with core loan growth and stable deposits. The company's asset quality metrics remained strong, and the net interest margin widened slightly.
Operating pre-provision net revenue (PPNR) totaled $134.5 million, up slightly, linked-quarter
Core loan growth of $385.3 million, or 8% linked-quarter annualized (LQA), more than offset the impact of $196.2 million in PPP loan forgiveness, leading to an overall increase in total loans of $189.1 million
Deposits increased $33.8 million, or less than 1% LQA, as the mix shifted from interest-bearing to noninterest-bearing
Nonperforming loans and criticized commercial loans declined 24% and 2%, respectively linked-quarter
Forward Guidance
Management continues to expect core loans to grow by 6-8% in 2022, with quarterly results reflecting normal seasonality. Management expects 2022 period-end deposit levels to remain flat to slightly down compared to year-end 2021. Management expects the NIM to continue widening in 2022 due to expected future rate hikes. Management expects a continued decline in secondary mortgage fees as rates begin to rise leading to a slowdown in activity compared to 2020’s refinance “boom”.
Positive Outlook
- Core loans to grow by 6-8% in 2022
- NIM to continue widening in 2022 due to expected future rate hikes
- Historically low levels of asset quality metrics
- Continued expense management
- Solid capital levels
Challenges Ahead
- Ongoing challenges in today’s environment
- Normal seasonality in quarterly results
- Deposit levels to remain flat to slightly down compared to year-end 2021
Historical Earnings Impact
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Avg. Return Before/After Earnings
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