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Sep 30, 2021
Hancock Whitney Q3 2021 Earnings Report
Reported solid results despite impacts of Hurricane Ida and the COVID-19 Delta surge.
Key Takeaways
Hancock Whitney reported net income of $129.6 million, or $1.46 per diluted common share (EPS) for Q3 2021. The quarter included ($1.4) million of net nonoperating income items, including Hurricane Ida expenses and a gain from the sale of Hancock Horizon Funds.
Pre-provision net revenue (PPNR) totaled $134.8 million, down $2.4 million, or 2%, linked-quarter
Core loan growth of $219.7 million, offset by the impact of $482.2 million in PPP loan forgiveness leading to an overall decline in total loans of $262.5 million
Deposits decreased $65.0 million linked-quarter; noninterest-bearing demand deposits increased $247.0 million
$28.8 million reserve release and $1.8 million in net charge-offs led to a negative provision for credit losses of $27.0 million
Forward Guidance
Management expects year-end loans to total approximately $20.4 billion, or a 3% increase year-over-year. Management expects continued NIM compression in the fourth quarter of 2021 with net interest income down slightly linked-quarter. Capital is strong and we 1 expect to achieve an 8% TCE, or better, by year-end 2021. We view third quarter of 2021 and near term guidance as continued momentum toward 2022 and our path to a 55% efficiency ratio.
Positive Outlook
- Core loan growth momentum continued
- DDA deposits increased during the quarter
- Net interest income was steady in the quarter
- Operating expense was steady in the quarter
- Asset quality metrics continue to improve
Challenges Ahead
- Impacts of Hurricane Ida
- Impacts of the COVID-19 Delta surge
- Slight compression in the NIM
- Fees were lower linked-quarter, mainly the result of secondary mortgage volume reductions
Historical Earnings Impact
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Avg. Return Before/After Earnings
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