Core Viewpoint - Hancock Whitney (HWC) is expected to report quarterly earnings of $1.28 per share, a 1.6% increase year-over-year, with revenues projected at $361.32 million, reflecting a 17.2% year-over-year growth [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 0.2%, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Financial Metrics - Analysts project the 'Net interest margin (TE)' to reach 3.4%, up from 3.3% in the same quarter last year [5]. - The 'Efficiency Ratio' is expected to be 56.6%, compared to 55.6% a year ago [5]. - 'Average Balance - Total interest earning assets' is estimated at $32.20 billion, down from $33.13 billion in the same quarter last year [6]. - 'Total nonperforming loans' are projected at $87.27 million, up from $59.04 million a year ago [6]. - 'Total nonperforming assets' are expected to reach $115.96 million, compared to $62.66 million last year [7]. - The consensus for 'Total Noninterest Income' stands at $88.49 million, significantly higher than $38.95 million a year ago [7]. - 'Net interest income (TE)' is estimated at $276.29 million, compared to $272.29 million in the same quarter last year [8]. - 'Net Interest Income' is projected at $273.08 million, up from $269.46 million a year ago [8]. Fee Projections - 'Bank card and ATM fees' are expected to reach $20.75 million, slightly up from $20.71 million last year [9]. - 'Investment and annuity fees and insurance commissions' are projected at $9.94 million, down from $11.09 million a year ago [9]. - 'Other income' is expected to be $15.30 million, significantly lower than $31.97 million last year [9]. - 'Service charges on deposit accounts' are forecasted to reach $22.50 million, compared to $21.64 million last year [10]. Stock Performance - Over the past month, shares of Hancock Whitney have returned +1.2%, while the Zacks S&P 500 composite has changed by -3.3% [10].

Like a lot of U.S. banks, shares of Hancock Whitney (NASDAQ: HWC ) received a nice boost from last week's election. I've been bullish on this Mississippi-based lender for over two years now, and since I last covered it, the stockI like to take a long term, buy-and-hold approach to investing, with a bias toward stocks that can sustainably post high quality earnings. Mostly found in the dividend and income section. Blog about various US/Canadian stocks at 'The Compound Investor', and predominantly UK names on ...

FORM 10-Q Information [Filing Details](index=1&type=section&id=Filing%20Details) This report is Hancock Whitney Corporation's quarterly filing (Form 10-Q) for Q3 2024, with the company classified as a large accelerated filer having submitted all required reports - Hancock Whitney Corporation is a **large accelerated filer**[3](index=3&type=chunk) - The company has filed all required reports and interactive data files within the past 12 months[2](index=2&type=chunk) Securities Registration Information | Category | Trading Symbol | Registered Exchange | |:---|:---|:---| | Common Stock, $3.33 par value per share | HWC | Nasdaq | | 6.25% Subordinated Notes | HWCPZ | Nasdaq | - As of October 31, 2024, the company had **86,060,352 shares of common stock outstanding**[4](index=4&type=chunk) Table of Contents & Glossary [Table of Contents](index=2&type=section&id=Table%20of%20Contents) This section outlines the report's main chapters, covering financial statements, management's discussion, market risk, controls, and other essential information - Key report sections include financial statements, management's discussion and analysis, market risk disclosures, controls and procedures, legal proceedings, risk factors, unregistered sales of equity securities and use of proceeds, other information, and exhibits[5](index=5&type=chunk) [Glossary of Defined Terms](index=3&type=section&id=Glossary%20of%20Defined%20Terms) This section defines key entities and financial terminology to ensure consistent understanding of the report's content - Entities such as **Hancock Whitney Corporation** and **Hancock Whitney Bank** are defined[6](index=6&type=chunk) - Financial and regulatory terms like **ACL** (Allowance for Credit Losses), **AFS** (Available-for-Sale Securities), **AOCI** (Accumulated Other Comprehensive Income or Loss), and **CECL** (Current Expected Credit Losses) are explained[7](index=7&type=chunk)[8](index=8&type=chunk) [ITEM 1. Financial Statements](index=5&type=section&id=ITEM%201.%20Financial%20Statements) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets were **$35.238 billion**, a slight decrease from **$35.579 billion** at December 31, 2023, with total liabilities at **$31.063 billion** and total stockholders' equity increasing to **$4.175 billion** Consolidated Balance Sheet Key Data (as of September 30, 2024, and December 31, 2023) | Metric | Sep 30, 2024 (USD (thousands)) | Dec 31, 2023 (USD (thousands)) | |:---|:---|:---| | **Assets:** | | | | Cash and due from banks | 569,876 | 561,202 | | Available-for-sale securities | 5,296,147 | 4,915,195 | | Held-to-maturity securities | 2,473,633 | 2,684,779 | | Loans, net | 23,138,316 | 23,614,010 | | Total assets | 35,238,107 | 35,578,573 | | **Liabilities:** | | | | Total deposits | 28,982,905 | 29,690,059 | | Short-term borrowings | 1,265,944 | 1,154,829 | | Long-term debt | 236,431 | 236,317 | | Total liabilities | 31,063,420 | 31,774,912 | | **Stockholders' Equity:** | | | | Total stockholders' equity | 4,174,687 | 3,803,661 | - Net loans decreased from **$23.614 billion** at December 31, 2023, to **$23.138 billion** at September 30, 2024[9](index=9&type=chunk) - Total deposits decreased from **$29.690 billion** at December 31, 2023, to **$28.983 billion** at September 30, 2024[9](index=9&type=chunk) [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q3 2024 was **$115.6 million**, an 18.3% increase from **$97.7 million** in Q3 2023, while year-to-date net income was **$338.7 million**, slightly below **$342.0 million** in the prior year Consolidated Statements of Income Key Data (as of September 30, 2024) | Metric (USD (thousands)) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | |:---|:---|:---|:---|:---| | Total interest income | 429,476 | 415,827 | 1,278,705 | 1,193,703 | | Total interest expense | 157,712 | 146,593 | 470,340 | 365,564 | | Net interest income | 271,764 | 269,234 | 808,365 | 828,139 | | Provision for credit losses | 18,564 | 28,498 | 40,255 | 42,151 | | Total noninterest income | 95,895 | 85,974 | 272,920 | 249,529 | | Total noninterest expense | 203,839 | 204,675 | 617,577 | 607,697 | | Net income | 115,572 | 97,738 | 338,741 | 341,999 | | Basic earnings per share | 1.33 | 1.12 | 3.89 | 3.93 | | Diluted earnings per share | 1.33 | 1.12 | 3.88 | 3.92 | | Dividends declared per share | 0.40 | 0.30 | 1.10 | 0.90 | - Net interest income for Q3 was **$271.8 million**, a slight increase from **$269.2 million** in the prior year period[11](index=11&type=chunk) - The provision for credit losses in Q3 was **$18.6 million**, a significant decrease from **$28.5 million** in the prior year period[11](index=11&type=chunk) [Consolidated Statements of Comprehensive Income](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q3 2024 was **$298.0 million**, compared to a comprehensive loss of **$34.5 million** in Q3 2023, primarily due to net changes in unrealized losses on available-for-sale securities Consolidated Statements of Comprehensive Income Key Data (as of September 30, 2024) | Metric (USD (thousands)) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | |:---|:---|:---|:---|:---| | Net income | 115,572 | 97,738 | 338,741 | 341,999 | | Other comprehensive income (loss) before tax | 234,128 | (171,041) | 186,534 | (159,434) | | Other comprehensive income (loss) after tax | 182,440 | (132,208) | 145,631 | (122,812) | | Comprehensive income (loss) | 298,012 | (34,470) | 484,372 | 219,187 | - Year-to-date comprehensive income for 2024 was **$484.4 million**, a substantial increase from **$219.2 million** in the same period of 2023[12](index=12&type=chunk) - Net changes in unrealized losses on available-for-sale securities, cash flow hedges, and equity method investments resulted in a **$219.7 million** gain in Q3 2024, compared to a **$184.5 million** loss in Q3 2023[12](index=12&type=chunk) [Consolidated Statements of Changes in Stockholders'%20Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Total stockholders' equity increased to **$4.175 billion** as of September 30, 2024, from **$3.804 billion** at December 31, 2023, driven by net income and positive other comprehensive income Consolidated Stockholders' Equity Changes (as of September 30, 2024) | Metric (USD (thousands)) | Sep 30, 2024 | Sep 30, 2023 | |:---|:---|:---| | Total stockholders' equity (period-end) | 4,174,687 | 3,501,003 | | Net income (YTD) | 338,741 | 341,999 | | Other comprehensive income (loss) (YTD) | 145,631 | (122,812) | | Dividends declared (YTD) | (96,890) | (79,169) | | Common stock repurchases (YTD) | (29,973) | — | - The company repurchased **612,993 shares** of common stock totaling **$29.973 million** during the first nine months of 2024[14](index=14&type=chunk) - Accumulated other comprehensive loss decreased from **$621.1 million** at December 31, 2023, to **$475.5 million** during the first nine months of 2024[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was **$434.2 million**, by investing activities was **$300.3 million**, and used in financing activities was **$725.8 million** for the nine months ended September 30, 2024 Consolidated Statements of Cash Flows Key Data (for the nine months ended September 30, 2024) | Metric (USD (thousands)) | 2024 | 2023 | |:---|:---|:---| | Net cash provided by operating activities | 434,183 | 402,403 | | Net cash provided by (used in) investing activities | 300,279 | (1,151,162) | | Net cash provided by (used in) financing activities | (725,788) | 725,651 | | Net increase (decrease) in cash and due from banks | 8,674 | (23,108) | | Cash and due from banks (period-end) | 569,876 | 541,351 | - Investing activities shifted from a **$1.151 billion** net outflow in 2023 to a **$300.3 million** net inflow in 2024, primarily due to net loan reductions and FHLB stock redemptions[15](index=15&type=chunk) - Financing activities shifted from a **$725.7 million** net inflow in 2023 to a **$725.8 million** net outflow in 2024, mainly due to net deposit decreases and common stock repurchases[15](index=15&type=chunk) [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed notes on accounting policies, securities, loans, derivatives, equity, income/expense, EPS, retirement plans, equity incentives, commitments, fair value, and recent accounting pronouncements [Basis of Presentation](index=12&type=section&id=Basis%20of%20Presentation) Consolidated financial statements are prepared under GAAP, include necessary adjustments, and rely on management estimates, with no significant changes in accounting policies during the period - Consolidated financial statements include Hancock Whitney Corporation and all controlled entities, complying with **GAAP**[16](index=16&type=chunk) - Management uses estimates and assumptions in financial statement preparation, and actual results may differ[18](index=18&type=chunk) - No significant changes or developments occurred in applying key accounting policies or estimates during the reporting period[19](index=19&type=chunk) [Securities](index=12&type=section&id=Securities) The securities portfolio includes AFS and HTM debt securities, with AFS at **$5.296 billion** and HTM at **$2.474 billion** as of September 30, 2024, primarily investment-grade with no significant credit losses Available-for-Sale (AFS) and Held-to-Maturity (HTM) Securities Overview (as of September 30, 2024) | Security Category | Amortized Cost (USD (thousands)) | Gross Unrealized Gains (USD (thousands)) | Gross Unrealized Losses (USD (thousands)) | Fair Value (USD (thousands)) | |:---|:---|:---|:---|:---| | **Available-for-Sale Securities** | | | | | | U.S. Treasury and government agency securities | 171,333 | 3,806 | 1,371 | 173,768 | | Residential mortgage-backed securities | 2,469,381 | 6,687 | 280,396 | 2,195,672 | | Commercial mortgage-backed securities | 2,839,988 | 13,836 | 185,916 | 2,667,908 | | **Held-to-Maturity Securities** | | | | | | U.S. Treasury and government agency securities | 400,115 | 661 | 34,673 | 366,103 | | Residential mortgage-backed securities | 593,502 | — | 43,613 | 549,889 | | Commercial mortgage-backed securities | 824,601 | — | 55,404 | 769,197 | - Total unrealized losses on available-for-sale securities were **$473.5 million** as of September 30, 2024, compared to **$593.1 million** at December 31, 2023[21](index=21&type=chunk) - The company invests only in **investment-grade quality securities** and has not recorded any significant credit loss events[25](index=25&type=chunk)[26](index=26&type=chunk) - Approximately **$3.4 billion** in securities were pledged as collateral as of September 30, 2024, primarily to secure public deposits or securities sold under repurchase agreements[24](index=24&type=chunk) [Loans and Allowance for Credit Losses](index=15&type=section&id=Loans%20and%20Allowance%20for%20Credit%20Losses) Total loans were **$23.456 billion** as of September 30, 2024, a decrease from **$23.922 billion** at December 31, 2023, while the Allowance for Credit Losses (ACL) increased to **$342.8 million**, reflecting ongoing risk focus, with increases in nonperforming loans and MEFDs Loan Portfolio (as of September 30, 2024, and December 31, 2023) | Loan Category (USD (thousands)) | Sep 30, 2024 | Dec 31, 2023 | |:---|:---|:---| | Commercial non-real estate | 9,588,309 | 9,957,284 | | Commercial real estate - owner occupied | 3,096,173 | 3,093,763 | | Total commercial and industrial | 12,684,482 | 13,051,047 | | Commercial real estate - income producing | 3,988,661 | 3,986,943 | | Construction and land development | 1,423,615 | 1,551,091 | | Residential mortgage | 3,988,309 | 3,886,072 | | Consumer | 1,370,520 | 1,446,764 | | Total loans | 23,455,587 | 23,921,917 | Allowance for Credit Losses (ACL) Changes (for the nine months ended September 30, 2024) | Metric (USD (thousands)) | 2024 | 2023 | |:---|:---|:---| | Allowance for loan losses beginning balance | 307,907 | 307,789 | | Allowance for loan losses ending balance | 317,271 | 306,291 | | Reserve for unfunded loan commitments beginning balance | 28,894 | 33,309 | | Reserve for unfunded loan commitments ending balance | 25,493 | 29,613 | | Total Allowance for Credit Losses (period-end) | 342,764 | 335,904 | - The company weighted Moody's September 2024 baseline economic forecast at **40%** and the mild recession S-2 scenario at **60%** when calculating the ACL as of September 30, 2024[44](index=44&type=chunk)[45](index=45&type=chunk) Nonperforming Loans and Loans with No Allowance for Loan Losses (as of September 30, 2024, and December 31, 2023) | Loan Category (USD (thousands)) | Sep 30, 2024 Total Nonperforming Loans | Sep 30, 2024 Nonperforming Loans with No Allowance for Loan Losses | Dec 31, 2023 Total Nonperforming Loans | Dec 31, 2023 Nonperforming Loans with No Allowance for Loan Losses | |:---|:---|:---|:---|:---| | Commercial non-real estate | 21,397 | 1,838 | 20,840 | 13,637 | | Commercial real estate - owner occupied | 2,889 | — | 2,228 | — | | Total commercial and industrial | 24,286 | 1,838 | 23,068 | 13,637 | | Commercial real estate - income producing | 1,918 | 1,679 | 461 | — | | Construction and land development | 6,316 | 5,694 | 815 | — | | Residential mortgage | 39,112 | — | 26,137 | — | | Consumer | 11,234 | 2,599 | 8,555 | — | | Total loans | 82,866 | 11,810 | 59,036 | 13,637 | - Reported modifications to borrowers experiencing financial difficulty (MEFDs) totaled **$95.6 million** as of September 30, 2024, a significant increase from **$24.5 million** at December 31, 2023[49](index=49&type=chunk)[50](index=50&type=chunk) [Investments in Low Income Housing Tax Credit Entities](index=29&type=section&id=Investments%20in%20Low%20Income%20Housing%20Tax%20Credit%20Entities) The company invests in Low Income Housing Tax Credit (LIHTC) limited partnerships, totaling **$37.5 million** as of September 30, 2024, amortized using the proportional amortization method over 10 years - Investments in low-income housing tax credit limited partnerships totaled **$37.5 million** (compared to **$37.8 million** at December 31, 2023)[72](index=72&type=chunk) - These investments are amortized using the **proportional amortization method**, with tax credits earned over 10 years and reflected as a reduction in income tax expense[72](index=72&type=chunk) - The LIHTC program had no material impact on the consolidated statements of income or cash flows for the nine months ended September 30, 2024, and 2023[72](index=72&type=chunk) [Short-term Borrowings](index=29&type=section&id=Short-term%20Borrowings) Short-term borrowings as of September 30, 2024, included **$300 million** in FHLB advances and **$765.7 million** in securities sold under repurchase agreements, with the remainder in federal funds purchased - FHLB advances were **$300 million** as of September 30, 2024, down from **$700 million** at December 31, 2023[73](index=73&type=chunk) - Securities sold under repurchase agreements were **$765.7 million** as of September 30, 2024, up from **$454.5 million** at December 31, 2023[74](index=74&type=chunk) - FHLB advances had a weighted average interest rate of **4.97%** and all matured on October 1, 2024[73](index=73&type=chunk) [Derivatives](index=29&type=section&id=Derivatives) The company uses derivatives to manage interest rate risk and serve clients, with a total notional amount of **$7.449 billion**, total fair value assets of **$118.8 million**, and total fair value liabilities of **$132.0 million** as of September 30, 2024 Fair Value of Derivative Financial Instruments (as of September 30, 2024, and December 31, 2023) | Metric (USD (thousands)) | Sep 30, 2024 Notional/Contract Amount | Sep 30, 2024 Derivative Assets | Sep 30, 2024 Derivative Liabilities | Dec 31, 2023 Notional/Contract Amount | Dec 31, 2023 Derivative Assets | Dec 31, 2023 Derivative Liabilities | |:---|:---|:---|:---|:---|:---|:---| | **Designated as Hedging Instruments** | | | | | | | | Interest rate swaps - floating rate loans | 1,350,000 | — | 33,120 | 1,550,000 | — | 73,611 | | Interest rate swaps - securities | 477,500 | 22,071 | — | 477,500 | 22,819 | — | | **Not Designated as Hedging Instruments** | | | | | | | | Interest rate swaps | 4,989,753 | 94,228 | 94,490 | 5,128,144 | 131,271 | 129,994 | | Risk participation agreements | 389,443 | 19 | 19 | 364,906 | 34 | 18 | | Residential mortgage loan rate lock commitments | 39,343 | 714 | — | 13,355 | — | 286 | | Visa Class B derivative contracts | 42,617 | — | 2,261 | 42,617 | — | 1,342 | | Total derivatives | 7,448,608 | 118,824 | 132,038 | 7,691,719 | 156,360 | 207,138 | - The company in the first nine months of 2024 terminated four cash flow swap agreements, paying approximately **$13.7 million** in cash[80](index=80&type=chunk) - Fair value liabilities for Visa Class B derivative contracts were **$2.3 million** as of September 30, 2024, compared to **$1.3 million** at December 31, 2023[94](index=94&type=chunk) [Stockholders'%20Equity](index=34&type=section&id=Stockholders%27%20Equity) As of September 30, 2024, outstanding common stock excludes **6.5 million** treasury shares and **0.3 million** unvested restricted shares, with **612,913 shares** repurchased year-to-date at an average cost of **$48.63** per share - Outstanding common stock as of September 30, 2024, excludes **6.5 million** treasury shares and **0.3 million** unvested restricted shares[101](index=101&type=chunk) - The company repurchased **612,913 shares** of common stock at an average cost of **$48.63** per share during the first nine months of 2024 under its stock repurchase program[102](index=102&type=chunk) Changes in Accumulated Other Comprehensive Income (Loss) (for the nine months ended September 30, 2024) | Metric (USD (thousands)) | Sep 30, 2024 Balance | Dec 31, 2023 Balance | |:---|:---|:---| | Available-for-sale securities | (347,315) | (450,748) | | Employee benefit plans | (83,033) | (103,061) | | Cash flow hedges | (36,803) | (58,306) | | Total | (475,496) | (621,127) | - Net changes in unrealized gains/losses on available-for-sale securities resulted in a **$132.4 million** gain for the first nine months of 2024, compared to a **$143.0 million** loss in the prior year period[103](index=103&type=chunk) [Other Noninterest Income](index=35&type=section&id=Other%20Noninterest%20Income) Total other noninterest income for Q3 2024 was **$18.8 million**, up from **$15.4 million** in Q3 2023, with year-to-date totaling **$45.3 million**, an increase from **$39.5 million** in the prior year Other Noninterest Income Components (as of September 30, 2024) | Component (USD (thousands)) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | |:---|:---|:---|:---|:---| | Bank-owned life insurance income | 4,364 | 3,633 | 12,353 | 10,283 | | Credit-related fees | 2,905 | 3,253 | 9,166 | 9,249 | | Customer and other derivative income (loss) | 923 | 418 | (2,939) | 1,585 | | Net gains on sales of premises, equipment, and other assets | 2,943 | 1,297 | 6,765 | 2,310 | | Other miscellaneous | 7,694 | 6,832 | 19,926 | 16,043 | | Total | 18,829 | 15,433 | 45,271 | 39,470 | - Customer and other derivative income (loss) for the first nine months of 2024 was a **$2.9 million** loss, compared to a **$1.6 million** income in the prior year period[106](index=106&type=chunk) - Net gains on sales of premises, equipment, and other assets significantly increased to **$6.8 million** for the first nine months of 2024, from **$2.3 million** in the prior year period[106](index=106&type=chunk) [Other Noninterest Expense](index=35&type=section&id=Other%20Noninterest%20Expense) Total other noninterest expense for Q3 2024 was **$20.5 million**, down from **$22.2 million** in Q3 2023, with year-to-date totaling **$62.1 million**, a decrease from **$66.2 million** in the prior year Other Noninterest Expense Components (as of September 30, 2024) | Component (USD (thousands)) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | |:---|:---|:---|:---|:---| | Franchise and other non-income taxes | 4,691 | 5,238 | 14,848 | 15,732 | | Advertising | 3,331 | 3,621 | 9,509 | 10,353 | | Telecommunications and postage | 2,406 | 2,590 | 7,108 | 8,373 | | Entertainment and donations | 2,707 | 2,765 | 8,570 | 7,978 | | Tax credit investment amortization | 1,585 | 1,494 | 4,694 | 4,297 | | Net other postretirement benefit expense | (4,396) | (3,228) | (13,727) | (10,195) | | Other miscellaneous | 7,800 | 7,404 | 24,070 | 22,536 | | Total | 20,472 | 22,220 | 62,073 | 66,246 | - Net other postretirement benefit expense resulted in a **$13.7 million** gain for the first nine months of 2024, an increase from a **$10.2 million** gain in the prior year period[107](index=107&type=chunk) - Franchise and other non-income taxes decreased to **$14.8 million** for the first nine months of 2024, from **$15.7 million** in the prior year period[107](index=107&type=chunk) [Earnings Per Common Share](index=37&type=section&id=Earnings%20Per%20Common%20Share) The company uses the two-class method for EPS calculation, with basic and diluted EPS for Q3 2024 at **$1.33**, up from **$1.12** in Q3 2023, and year-to-date basic EPS at **$3.89** and diluted EPS at **$3.88** Earnings Per Common Share Calculation Summary (as of September 30, 2024) | Metric (USD (thousands), except per share data) | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 | |:---|:---|:---|:---|:---| | Net income attributable to common shareholders | 114,800 | 96,746 | 336,375 | 338,425 | | Weighted average common shares outstanding - basic | 86,234 | 86,131 | 86,421 | 86,082 | | Weighted average common shares outstanding - diluted | 86,560 | 86,437 | 86,650 | 86,368 | | Earnings per common share - basic | 1.33 | 1.12 | 3.89 | 3.93 | | Earnings per common share - diluted | 1.33 | 1.12 | 3.88 | 3.92 | - Potentially dilutive common shares (e.g., stock options, unvested performance awards) are excluded if their effect is anti-dilutive[110](index=110&type=chunk) [Retirement Plans](index=37&type=section&id=Retirement%20Plans) The company offers qualified defined benefit pension plans, a 401(k) savings plan, and non-qualified defined benefit and postretirement benefit plans, with the pension plan closed to new employees hired after June 30, 2017 - The company offers a **defined benefit pension plan**, but employees hired after June 30, 2017, are not eligible[111](index=111&type=chunk) - The **401(k) plan** provides a 100% match on the first 1% of compensation and 50% on the next 5%, plus additional basic contributions for certain employees[112](index=112&type=chunk) Net Periodic Benefit Cost Components (for the nine months ended September 30, 2024) | Component (USD (thousands)) | Pension Benefits | Other Postretirement Benefits | |:---|:---|:---| | Service cost (benefit) | 5,806 | 25 | | Interest cost | 17,986 | 443 | | Expected return on plan assets | (35,724) | — | | Net periodic benefit cost | (7,778) | (117) | [Share-Based Payment Arrangements](index=38&type=section&id=Share-Based%20Payment%20Arrangements) The company provides equity incentives through Restricted Stock Units (RSUs) and performance share awards, with **$50.0 million** in unrecognized compensation cost as of September 30, 2024, expected to be recognized over a **3.1-year** weighted-average period Unvested Restricted Stock Units and Performance Share Awards Status (as of September 30, 2024) | Metric | Shares | |:---|:---| | Unvested as of January 1, 2024 | 1,457,401 | | Granted | 784,293 | | Vested | (496,536) | | Forfeited | (168,740) | | Unvested as of September 30, 2024 | 1,576,418 | - Unrecognized compensation cost related to unvested restricted stock and performance share awards totaled **$50.0 million** as of September 30, 2024, expected to be recognized over a **3.1-year** weighted-average period[120](index=120&type=chunk) - During the first nine months of 2024, the company granted **545,643 RSUs** and **95,468 performance share awards** (based on TSR and adjusted EPS metrics)[121](index=121&type=chunk)[122](index=122&type=chunk) [Commitments and Contingencies](index=40&type=section&id=Commitments%20and%20Contingencies) The company enters into credit commitments and letters of credit in its ordinary course of business, totaling **$9.201 billion** and **$430.1 million** respectively as of September 30, 2024, and has disclosed contingent liabilities related to FDIC special assessments Off-Balance Sheet Financial Instruments Summary (as of September 30, 2024, and December 31, 2023) | Metric (USD (thousands)) | Sep 30, 2024 | Dec 31, 2023 | |:---|:---|:---| | Credit commitments | 9,201,078 | 9,852,367 | | Letters of credit | 430,127 | 481,910 | - The company's allowance for credit losses on unfunded loan commitments was **$25.5 million** as of September 30, 2024 (compared to **$28.9 million** at December 31, 2023)[127](index=127&type=chunk) - The company recorded a **$26.1 million** pre-tax FDIC special assessment in Q4 2023, increasing it to **$30.7 million** in 2024, to cover losses from Silicon Valley Bank and Signature Bank failures[130](index=130&type=chunk) [Fair Value Measurements](index=40&type=section&id=Fair%20Value%20Measurements) The company measures financial assets and liabilities at fair value using a three-level hierarchy, with recurring fair value assets totaling **$5.389 billion** and liabilities **$132.0 million**, and non-recurring assets **$53.7 million** as of September 30, 2024 Recurring Fair Value Measured Assets (as of September 30, 2024) | Asset Category (USD (thousands)) | Level 1 | Level 2 | Level 3 | Total | |:---|:---|:---|:---|:---| | Total available-for-sale debt securities | — | 5,296,147 | — | 5,296,147 | | Mortgage loans held for sale | — | 23,462 | — | 23,462 | | Derivative assets | — | 69,815 | — | 69,815 | | Total | — | 5,389,424 | — | 5,389,424 | Recurring Fair Value Measured Liabilities (as of September 30, 2024) | Liability Category (USD (thousands)) | Level 1 | Level 2 | Level 3 | Total | |:---|:---|:---|:---|:---| | Derivative liabilities | — | 129,768 | 2,261 | 132,029 | | Total | — | 129,768 | 2,261 | 132,029 | - The company's Level 3 liabilities primarily include derivative contracts with Visa Class B common stock purchasers, valued using discounted cash flow methods and unobservable inputs related to Visa Class A stock appreciation, conversion rates, and settlement timing[139](index=139&type=chunk) Non-Recurring Fair Value Measured Assets (as of September 30, 2024) | Asset Category (USD (thousands)) | Level 1 | Level 2 | Level 3 | Total | |:---|:---|:---|:---|:---| | Mortgage loans individually evaluated for credit losses | — | 26,016 | — | 26,016 | | Other real estate owned and foreclosed assets, net | — | — | 27,732 | 27,732 | | Total | — | 26,016 | 27,732 | 53,748 | [Recent Accounting Pronouncements](index=47&type=section&id=Recent%20Accounting%20Pronouncements) The company adopted ASU 2023-02 without financial impact and is evaluating ASUs 2023-07, 2023-09, 2024-02, and 2024-03, expecting no significant impact on operations or financial condition as they primarily involve disclosure requirements - The company adopted **ASU 2023-02** on January 1, 2024, allowing the proportional amortization method for eligible tax credit equity investments, with no impact on financial condition or operating results[160](index=160&type=chunk) - The company is evaluating the impact of **ASU 2023-07** (Segment Reporting) and **ASU 2023-09** (Income Tax Disclosures), expecting no impact on operating results or financial condition as they primarily involve disclosure requirements[161](index=161&type=chunk)[162](index=162&type=chunk) - The company is evaluating the impact of **ASU 2024-02** (Codification Improvements) and **ASU 2024-03** (Expense Disaggregation Disclosures), expecting no significant impact on financial condition or operating results[163](index=163&type=chunk)[164](index=164&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Forward-Looking Statements](index=49&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements, cautioning investors that actual results may differ due to various risks and uncertainties, including economic conditions, banking developments, credit risk, interest rate fluctuations, regulatory changes, and cybersecurity risks - Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from expectations[165](index=165&type=chunk) - Key risk factors include local market economic and business conditions, adverse banking developments, insufficient allowance for credit losses, real estate value fluctuations, inadequate enterprise risk management framework, deposit trends, interest rate changes, regulatory environment changes, and cybersecurity risks[165](index=165&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements unless required by law[170](index=170&type=chunk) [Overview](index=50&type=section&id=Overview) This section introduces the company's non-GAAP financial measures and their reconciliation to GAAP, analyzes the current economic environment, and outlines the economic outlook, with weighted baseline and mild recession scenarios for ACL calculation - The company uses non-GAAP financial measures like **tax-equivalent (te) net interest income**, **net interest margin**, and **efficiency ratio** to enhance comparability and understanding of performance[173](index=173&type=chunk)[175](index=175&type=chunk) - The current economic environment features inflation above the Fed's target (**3.3% core inflation in September**), signs of labor market softening (**unemployment at 4.3% in July, 4.1% in September**), but strong consumer spending (**Q3 GDP growth of 2.8%**)[176](index=176&type=chunk) - The company weighted Moody's baseline economic forecast at **40%** and the mild recession S-2 scenario at **60%** for the ACL calculation as of September 30, 2024[180](index=180&type=chunk) - The baseline scenario assumes the Federal Reserve will implement two **25 basis point rate cuts** in September and December 2024, reaching a **3.0% fed funds rate** by 2027[181](index=181&type=chunk) [Highlights of the Third Quarter 2024](index=52&type=section&id=Highlights%20of%20the%20Third%20Quarter%202024) Net income for Q3 2024 was **$115.6 million**, with diluted EPS of **$1.33**, showing growth from both prior quarter and prior year, while pre-provision net revenue (non-GAAP) increased **6%** and the efficiency ratio improved to **54.42%** Key Financial Highlights for Q3 2024 | Metric | Q3 2024 | Q2 2024 | Q3 2023 | |:---|:---|:---|:---| | Net income (USD (millions)) | 115.6 | 114.6 | 97.7 | | Diluted earnings per share (USD) | 1.33 | 1.31 | 1.12 | | Pre-provision net revenue (USD (millions)) | 166.5 | 156.4 | 153.4 | | Period-end loans (USD (billions)) | 23.5 | 23.9 | 24.0 | | Annualized net charge-off rate (%) | 0.30% | 0.12% | 0.64% | | Allowance for credit losses coverage ratio (%) | 1.46% | 1.43% | 1.40% | | Period-end deposits (USD (billions)) | 29.0 | 29.2 | 29.8 | | Net interest margin (%) | 3.39% | 3.37% | 3.27% | | Common equity Tier 1 ratio (%) | 13.78% | 13.25% | 12.06% | | Tangible common equity ratio (%) | 9.56% | 8.77% | 7.34% | | Efficiency ratio (%) | 54.42% | 56.18% | 56.38% | - Total period-end loans were **$23.5 billion**, a **2% decrease**, reflecting continued reduction in the shared national credit portfolio[185](index=185&type=chunk) - Net interest margin was **3.39%**, up **2 basis points** from the prior quarter, driven by higher loan and securities yields and lower borrowing costs[185](index=185&type=chunk)[190](index=190&type=chunk) [Results of Operations](index=55&type=section&id=Results%20of%20Operations) This section analyzes the company's net interest income, credit loss provision, noninterest income, noninterest expense, and income tax performance for Q3 and year-to-date 2024, detailing key drivers and trends [Net Interest Income](index=55&type=section&id=Net%20Interest%20Income) Q3 2024 tax-equivalent (te) net interest income was **$274.5 million**, a slight increase from the prior quarter due to higher yields and lower borrowing costs, while year-to-date te net interest income was **$816.7 million**, down **2%** from 2023 - Q3 2024 tax-equivalent (te) net interest income was **$274.5 million**, an increase of **$1.2 million** from Q2 2024, primarily due to additional accrual days, higher loan and securities yields, and lower borrowing rates[190](index=190&type=chunk)[191](index=191&type=chunk) - Year-to-date te net interest income for 2024 was **$816.7 million**, a **$19.7 million** decrease from the prior year period, mainly due to growth and prevailing rates on interest-bearing liabilities exceeding earning assets[191](index=191&type=chunk)[192](index=192&type=chunk) - Net interest margin for Q3 2024 was **3.39%**, up **2 basis points** from Q2 2024[190](index=190&type=chunk) - Net interest margin is expected to moderately expand in Q4 2024, assuming two **25 basis point rate cuts** by the Federal Reserve during the period[193](index=193&type=chunk) [Provision for Credit Losses](index=57&type=section&id=Provision%20for%20Credit%20Losses) The company recorded a **$18.6 million** provision for credit losses in Q3 2024, an increase from **$8.7 million** in the prior quarter due to higher net charge-offs, with year-to-date provision at **$40.3 million**, slightly below **$42.2 million** in 2023 - The Q3 2024 provision for credit losses was **$18.6 million**, comprising **$18.0 million** in net charge-offs and a **$0.6 million** allowance increase[196](index=196&type=chunk) - Annualized net charge-offs as a percentage of average loans were **0.30%** in Q3 2024, up from **0.12%** in Q2 2024[196](index=196&type=chunk) - Year-to-date provision for credit losses was **$40.3 million**, including **$34.3 million** in net charge-offs and a **$6.0 million** allowance increase[197](index=197&type=chunk) - Moderate charge-offs and provision for credit losses are anticipated for the remainder of 2024, driven by loan growth, portfolio mix, asset quality metrics, and future economic forecasts[198](index=198&type=chunk) [Noninterest Income](index=59&type=section&id=Noninterest%20Income) Total noninterest income for Q3 2024 was **$95.9 million**, an **8%** increase from the prior quarter, driven by growth in professional business lines, with year-to-date totaling **$272.9 million**, a **9%** increase from 2023 due to broad fee income growth Noninterest Income Components (as of September 30, 2024) | Component (USD (thousands)) | Q3 2024 | Q2 2024 | Q3 2023 | YTD 2024 | YTD 2023 | |:---|:---|:---|:---|:---|:---| | Deposit account service charges | 23,144 | 22,275 | 22,264 | 67,658 | 64,377 | | Fiduciary fees | 18,014 | 18,473 | 16,593 | 53,564 | 50,720 | | Bank card and ATM fees | 21,639 | 21,827 | 20,555 | 64,088 | 62,258 | | Investment and annuity fees and insurance commissions | 10,890 | 9,789 | 8,520 | 32,523 | 25,628 | | Secondary mortgage market operations | 3,379 | 3,546 | 2,609 | 9,816 | 7,076 | | Bank-owned life insurance income | 4,364 | 3,760 | 3,633 | 12,353 | 10,283 | | Credit-related fees | 2,905 | 3,130 | 3,253 | 9,166 | 9,249 | | Customer and other derivative income (loss) | 923 | (1,060) | 418 | (2,939) | 1,585 | | Net gains on sales of premises, equipment, and other assets | 2,943 | 1,043 | 1,297 | 6,765 | 2,310 | | Other miscellaneous | 7,694 | 6,391 | 6,832 | 19,926 | 16,043 | | Total noninterest income | 95,895 | 89,174 | 85,974 | 272,920 | 249,529 | - Customer and other derivative income shifted from a **$1.1 million** loss in the prior quarter to a **$0.9 million** income in Q3 2024, primarily reflecting the non-recurrence of expenses from Visa Class B derivative liability assumption changes[210](index=210&type=chunk) - Total noninterest income for full-year 2024 is projected to increase by **6% to 7%** compared to the adjusted **$337.7 million** in 2023[213](index=213&type=chunk) [Noninterest Expense](index=61&type=section&id=Noninterest%20Expense) Noninterest expense for Q3 2024 was **$203.8 million**, a **1%** decrease from the prior quarter due to reduced personnel expenses, other miscellaneous losses, and deposit insurance/regulatory fees, with year-to-date totaling **$617.6 million**, a **2%** increase from 2023, including **$3.8 million** in FDIC special assessment Noninterest Expense Components (as of September 30, 2024) | Component (USD (thousands)) | Q3 2024 | Q2 2024 | Q3 2023 | YTD 2024 | YTD 2023 | |:---|:---|:---|:---|:---|:---| | Salaries expense | 94,371 | 97,121 | 95,650 | 288,061 | 282,174 | | Employee benefits | 21,400 | 21,605 | 20,616 | 67,593 | 64,279 | | Total personnel expense | 115,771 | 118,726 | 116,266 | 355,654 | 346,453 | | Data processing expense | 31,124 | 31,371 | 29,822 | 91,232 | 87,566 | | Professional services expense | 10,984 | 9,458 | 9,519 | 29,478 | 27,565 | | Deposit insurance and regulatory fees | 5,480 | 6,008 | 5,851 | 20,419 | 18,234 | | Net income from other real estate owned and foreclosed assets | (411) | (1,099) | (26) | (1,706) | (153) | | Other miscellaneous | 7,800 | 8,646 | 7,404 | 24,070 | 22,536 | | Total noninterest expense | 203,839 | 206,016 | 204,675 | 617,577 | 607,697 | - Year-to-date noninterest expense for 2024 includes a **$3.8 million FDIC special assessment**[215](index=215&type=chunk)[220](index=220&type=chunk) - Total noninterest expense for full-year 2024 is projected to increase by **1% to 2%** compared to the adjusted **$810.7 million** in 2023[226](index=226&type=chunk) [Income Taxes](index=63&type=section&id=Income%20Taxes) The effective income tax rate was **20.4%** for Q3 2024 and **20.0%** year-to-date, consistent with 2023, influenced by pre-tax income, tax-exempt interest, and tax credit investments, with a projected 2024 rate between **20% and 21%** - The effective income tax rate was **20.4%** for Q3 2024, compared to **20.9%** in Q2 2024[229](index=229&type=chunk) - The year-to-date effective income tax rate for 2024 was **20.0%**, largely consistent with the prior year period[229](index=229&type=chunk) - The effective income tax rate for 2024 is projected to be between **20% and 21%**, barring changes in tax law[230](index=230&type=chunk) - The company expects to realize **$9.8 million**, **$8.2 million**, and **$8.0 million** in federal and state tax credits in 2025, 2026, and 2027, respectively[233](index=233&type=chunk) [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's liquidity and capital adequacy, reporting **$19.8 billion** in available liquidity as of September 30, 2024, significantly exceeding **$10.8 billion** in uninsured, uncollateralized deposits, with regulatory capital ratios well above minimum requirements [Liquidity](index=63&type=section&id=Liquidity) Total available liquidity was **$19.8 billion** as of September 30, 2024, significantly exceeding **$10.8 billion** in uninsured, uncollateralized deposits, with free securities at **56.52%** of total securities and core deposits at **92.95%** of total deposits Sources of Funds Available (as of September 30, 2024) | Source of Funds (USD (thousands)) | Total Available | Amount Utilized | Net Available | |:---|:---|:---|:---| | Internal Sources: | | | | | Free securities | 4,343,629 | — | 4,343,629 | | External Sources: | | | | | Federal Home Loan Bank | 6,889,014 | 1,333,088 | 5,555,926 | | Federal Reserve Bank | 3,319,794 | — | 3,319,794 | | Brokered deposits | 4,347,436 | 190,493 | 4,156,943 | | Other | 1,229,000 | 200,000 | 1,029,000 | | Total sources of funds | 20,128,873 | 1,723,581 | 18,405,292 | | Cash and other interest-bearing bank deposits | | | 1,365,107 | | Total liquidity | | | 19,770,399 | - As of September 30, 2024, the company's available liquidity (**$19.8 billion**) significantly exceeded estimated uninsured, uncollateralized deposits (**$10.8 billion**)[236](index=236&type=chunk)[281](index=281&type=chunk) Liquidity Metrics (as of September 30, 2024) | Metric | Sep 30, 2024 | |:---|:---| | Free securities / Total securities (%) | 56.52% | | Core deposits / Total deposits (%) | 92.95% | | Wholesale funding / Core deposits (%) | 6.28% | | Liquid assets / Total liabilities (%) | 18.38% | | Quarterly average loans / Quarterly average deposits (%) | 81.38% | - Parent company cash and other liquid assets totaled **$253.8 million**, exceeding internal targets and sufficient to meet approximately **six quarters** of ongoing cash or liquid asset needs[246](index=246&type=chunk) [Capital Resources](index=65&type=section&id=Capital%20Resources) Total stockholders' equity was **$4.2 billion** as of September 30, 2024, a **10%** increase from December 31, 2023, with the Tangible Common Equity (TCE) ratio rising **79 basis points** to **9.56%**, and both company and bank regulatory capital ratios remaining well above minimum requirements - Total stockholders' equity was **$4.2 billion** as of September 30, 2024, an increase of **$371 million (10%)** from December 31, 2023[247](index=247&type=chunk) - The Tangible Common Equity (TCE) ratio was **9.56%**, up **79 basis points** from June 30, 2024, driven by other comprehensive income and tangible net income[248](index=248&type=chunk) Regulatory Capital Ratios (as of September 30, 2024) | Regulatory Capital Ratio | Capital Adequacy Requirement (%) | Hancock Whitney Corporation (%) | Hancock Whitney Bank (%) | |:---|:---|:---|:---| | Total Capital (Risk-Weighted Assets) | 10.00% | 15.56% | 14.52% | | Common Equity Tier 1 Capital (Risk-Weighted Assets) | 6.50% | 13.78% | 13.36% | | Tier 1 Capital (Risk-Weighted Assets) | 8.00% | 13.78% | 13.36% | | Tier 1 Leverage Capital | 5.00% | 11.03% | 10.69% | - Both the company and the bank's regulatory capital ratios significantly exceed current minimum regulatory requirements, including the capital conservation buffer, by at least **$1.1 billion**[249](index=249&type=chunk) - The company repurchased **300,000 shares** of common stock at an average price of **$50.63** per share during Q3 2024[254](index=254&type=chunk) [Balance Sheet Analysis](index=66&type=section&id=Balance%20Sheet%20Analysis) This section analyzes key balance sheet components, including short-term investments, securities, loans, ACL, asset quality, deposits, short-term borrowings, and long-term debt, discussing trends and driving factors [Short-Term Investments](index=66&type=section&id=Short-Term%20Investments) Short-term investments, including interest-bearing bank deposits and federal funds sold, totaled **$795.2 million** as of September 30, 2024, an increase of **$168.1 million** from December 31, 2023, to ensure funds are available for cash flow needs - Short-term investments totaled **$795.2 million** as of September 30, 2024, an increase of **$213.6 million** from June 30, 2024, and **$168.1 million** from December 31, 2023[255](index=255&type=chunk) - Average short-term investments for Q3 2024 were **$466.3 million**, an increase of **$83.4 million** from Q2 2024[255](index=255&type=chunk) - Short-term investment balances typically fluctuate daily based on changes in customer loan and deposit accounts[255](index=255&type=chunk) [Securities](index=66&type=section&id=Securities) Total securities investments were **$7.8 billion** as of September 30, 2024, a **2%** increase from December 31, 2023, primarily comprising residential and commercial mortgage-backed securities issued or guaranteed by U.S. government agencies, with an average expected life of **5.78 years** and a nominal weighted average yield of **2.62%** - Total securities investments were **$7.8 billion** as of September 30, 2024, an increase of **$169.8 million (2%)** from December 31, 2023[257](index=257&type=chunk) - As of September 30, 2024, available-for-sale securities were **$5.3 billion**, and held-to-maturity securities were **$2.5 billion**[257](index=257&type=chunk) - The investment portfolio primarily consists of residential and commercial mortgage-backed securities issued or guaranteed by U.S. government agencies, with investments solely in **high-quality investment-grade securities**[258](index=258&type=chunk) - As of September 30, 2024, the portfolio had an average expected life of **5.78 years**, an effective duration of **4.25 years**, and a nominal weighted average yield of **2.62%**[258](index=258&type=chunk) [Loans](index=67&type=section&id=Loans) Total loans were **$23.5 billion** as of September 30, 2024, a **2%** decrease from December 31, 2023, mainly due to strategic reductions in the shared national credit portfolio and higher payoffs in income-producing commercial real estate loans, with C&I loans down **3%** and construction and land development loans down **8%** Loan Portfolio (as of September 30, 2024) | Loan Category (USD (thousands)) | Sep 30, 2024 | Dec 31, 2023 | |:---|:---|:---| | Commercial non-real estate | 9,588,309 | 9,957,284 | | Commercial real estate - owner occupied | 3,096,173 | 3,093,763 | | Total commercial and industrial | 12,684,482 | 13,051,047 | | Commercial real estate - income producing | 3,988,661 | 3,986,943 | | Construction and land development | 1,423,615 | 1,551,091 | | Residential mortgage | 3,988,309 | 3,886,072 | | Consumer | 1,370,520 | 1,446,764 | | Total loans | 23,455,587 | 23,921,917 | - Shared national credit balances were **$2.28 billion**, representing **9.7%** of total loans, a **$340.5 million** decrease from December 31, 2023, reflecting a strategic reduction in large pure credit relationships[263](index=263&type=chunk) - Decreases in income-producing commercial real estate and construction and land development loans reflect the company's efforts to limit growth in income-producing real estate in the current economic environment[266](index=266&type=chunk) - The consumer loan portfolio decreased by **5%**, primarily due to slowing demand and the exit from the indirect auto loan market[268](index=268&type=chunk) [Allowance for Credit Losses and Asset Quality](index=69&type=section&id=Allowance%20for%20Credit%20Losses%20and%20Asset%20Quality) The Allowance for Credit Losses (ACL) was **$342.8 million** as of September 30, 2024, a **$6.0 million** increase from December 31, 2023, reflecting ongoing focus on certain portfolio risks, with an ACL coverage ratio of **1.46%** and increases in nonperforming loans and criticized commercial loans, attributed to credit metric normalization - The Allowance for Credit Losses (ACL) was **$342.8 million** as of September 30, 2024, an increase of **$6.0 million** from December 31, 2023[270](index=270&type=chunk) - The company weighted Moody's September 2024 baseline economic forecast at **40%** and the mild recession S-2 scenario at **60%** when calculating the ACL[271](index=271&type=chunk) - The ACL coverage ratio was **1.46%**, up from **1.41%** at December 31, 2023[272](index=272&type=chunk) - Total criticized commercial loans were **$508.0 million**, an **86%** increase from December 31, 2023, primarily reflecting the normalization of credit metrics and downgrades due to regulatory review[273](index=273&type=chunk) - Net charge-offs for Q3 2024 were **$18.0 million**, with annualized net charge-offs as a percentage of average loans at **0.30%**, up from **0.12%** in the prior quarter[274](index=274&type=chunk) - Total nonperforming loans were **$82.9 million**, an increase of **$23.8 million** from December 31, 2023, but still a relatively low **0.35%** of total loans[277](index=277&type=chunk) [Deposits](index=72&type=section&id=Deposits) Total deposits were **$29.0 billion** as of September 30, 2024, a **2%** decrease from December 31, 2023, with noninterest-bearing deposits at **36%** of total deposits and interest-bearing deposits yielding **3.15%**, maintaining a stable and diversified deposit base with **$10.8 billion** in uninsured, uncollateralized deposits - Total deposits were **$29.0 billion** as of September 30, 2024, a decrease of **$707.2 million (2%)** from December 31, 2023[282](index=282&type=chunk) Deposit Composition (as of September 30, 2024) | Deposit Category (USD (thousands)) | Sep 30, 2024 | Dec 31, 2023 | |:---|:---|:---| | Noninterest-bearing deposits | 10,499,476 | 11,030,515 | | Interest-bearing retail transaction and savings deposits | 10,902,720 | 10,680,741 | | Total interest-bearing public funds deposits | 2,704,105 | 3,143,015 | | Retail time deposits | 4,686,111 | 4,246,027 | | Brokered time deposits | 190,493 | 589,761 | | Total interest-bearing deposits | 18,483,429 | 18,659,544 | | Total deposits | 28,982,905 | 29,690,059 | - Noninterest-bearing demand deposits accounted for **36%** of total deposits, a slight decrease from **37%** at December 31, 2023, reflecting customer shifts to interest-bearing products[283](index=283&type=chunk) - Uninsured, uncollateralized deposits were approximately **$10.8 billion** as of September 30, 2024, representing **37.1%** of total deposits[281](index=281&type=chunk) - The interest rate on interest-bearing deposits for Q3 2024 was **3.15%**, a slight increase from the prior quarter[285](index=285&type=chunk) [Short-Term Borrowings](index=74&type=section&id=Short-Term%20Borrowings) Total short-term borrowings were **$1.3 billion** as of September 30, 2024, an increase of **$111.1 million** from December 31, 2023, primarily comprising customer repurchase agreements and FHLB borrowings, which are core to the company's funding strategy - Total short-term borrowings were **$1.3 billion** as of September 30, 2024, a decrease of **$98.0 million** from June 30, 2024, but an increase of **$111.1 million** from December 31, 2023[288](index=288&type=chunk) - Changes reflect a **$400 million** decrease in FHLB advances from December 31, 2023, and fluctuations in customer repurchase agreements and federal funds purchased[288](index=288&type=chunk) - Customer repurchase agreements and FHLB borrowings are primary sources of short-term funding used to meet immediate liquidity needs[289](index=289&type=chunk) [Long-Term Debt](index=74&type=section&id=Long-Term%20Debt) Total long-term debt was **$236.4 million** as of September 30, 2024, largely consistent with December 31, 2023, primarily consisting of **$172.5 million** in subordinated notes qualifying as Tier 2 capital, redeemable on any quarterly interest payment date after June 15, 2025 - Total long-term debt was **$236.4 million** as of September 30, 2024, largely consistent with June 30, 2024, and December 31, 2023[290](index=290&type=chunk) - Long-term debt includes **$172.5 million** in aggregate principal amount of subordinated notes with a **6.25%** coupon, maturing on June 15, 2060, and qualifying as Tier 2 capital[291](index=291&type=chunk) [Off-Balance Sheet Arrangements](index=76&type=section&id=Off-Balance%20Sheet%20Arrangements) The company provides credit commitments and letters of credit in its ordinary course of business, totaling **$9.201 billion** and **$430.1 million** respectively as of September 30, 2024, which are off-balance sheet but carry varying degrees of credit and interest rate risk - Credit commitments include revolving commercial lines of credit, non-revolving loan commitments, and credit card and personal lines of credit[293](index=293&type=chunk) - Letters of credit are primarily standby agreements requiring the bank to honor obligations to third parties if a customer fails to perform financial commitments[294](index=294&type=chunk) Off-Balance Sheet Financial Instruments (as of September 30, 2024) | Category (USD (thousands)) | Total | Due in 1 Year or Less | Due in 1-3 Years | Due in 3-5 Years | Due in More Than 5 Years | |:---|:---|:---|:---|:---|:---| | Credit commitments | 9,201,078 | 3,696,146 | 2,404,772 | 2,262,267 | 837,893 | | Letters of credit | 430,127 | 366,992 | 11,278 | 51,729 | 128 | | Total | 9,631,205 | 4,063,138 | 2,416,050 | 2,313,996 | 838,021 | - The company's allowance for credit losses on unfunded loan commitments totaled **$25.5 million** as of September 30, 2024[295](index=295&type=chunk) [Critical Accounting Policies and Estimates](index=76&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) No significant changes or developments occurred in applying critical accounting policies and estimates during the reporting period, with financial statements prepared under GAAP involving management's estimates and assumptions - No significant changes or developments occurred in applying critical accounting policies and estimates during the reporting period[298](index=298&type=chunk) - Financial statements are prepared under **GAAP** and require management to make estimates and assumptions, where actual results may differ significantly[299](index=299&type=chunk) [New Accounting Pronouncements](index=76&type=section&id=New%20Accounting%20Pronouncements) This section refers to Note 15 of the consolidated financial statements for detailed information on new accounting pronouncements - Detailed information regarding new accounting pronouncements can be found in **Note 15** to the consolidated financial statements in this report[300](index=300&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) [Net Interest Income at Risk](index=77&type=section&id=Net%20Interest%20Income%20at%20Risk) The company primarily faces interest rate risk, managed by assessing Net Interest Income (NII) sensitivity to rate changes, with a **1.73%** increase projected for the first year and **3.65%** for the second year in a **100 basis point** rate up scenario as of September 30, 2024 - The company's primary market risk is **interest rate risk**, managed through asset/liability strategies to promote relative stability of net interest margin across various rate environments[301](index=301&type=chunk)[302](index=302&type=chunk) Net Interest Income (NII) at Risk Analysis (as of September 30, 2024) | Interest Rate Change (Basis Points) | First Year NII Change (%) | Second Year NII Change (%) | |:---|:---|:---| | -300 | -6.83% | -13.32% | | -200 | -4.02% | -8.75% | | -100 | -1.79% | -4.10% | | +100 | 1.73% | 3.65% | | +200 | 3.17% | 6.90% | | +300 | 4.61% | 10.19% | - Results indicate the company is generally **asset sensitive** in most scenarios, primarily driven by cash flow repricing of the investment and loan portfolios[304](index=304&type=chunk) [Economic Value of Equity (EVE)](index=77&type=section&id=Economic%20Value%20of%20Equity%20(EVE)) The company uses EVE simulations to analyze the sensitivity of the theoretical market value of bank equity to interest rate changes, projecting a **2.85%** decrease in EVE in a **100 basis point** rate up scenario as of September 30, 2024 - EVE simulations assess the theoretical market value of bank equity by calculating the present value of future cash inflows from assets minus the present value of future cash outflows from liabilities[306](index=306&type=chunk) Economic Value of Equity (EVE) Change Analysis (as of September 30, 2024) | Interest Rate Change (Basis Points) | Estimated EVE Change (%) | |:---|:---| | -300 | 3.73% | | -200 | 3.30% | | -100 | 2.17% | | +100 | -2.85% | | +200 | -6.11% | | +300 | -9.47% | - The net change in EVE remains within board-approved parameters[308](index=308&type=chunk) [ITEM 4. Controls and Procedures](index=78&type=section&id=ITEM%204.%20Controls%20and%20Procedures) [Effectiveness of Disclosure Controls and Procedures](index=78&type=section&id=Effectiveness%20of%20Disclosure%20Controls%20and%20Procedures) As of September 30, 2024, the company's management, including the CEO and CFO, assessed and concluded that its disclosure controls and procedures were effective - As of September 30, 2024, the company's **disclosure controls and procedures** were deemed effective[309](index=309&type=chunk) - Disclosure controls and procedures are designed to ensure required information is recorded, processed, summarized, and reported within SEC rules and forms[309](index=309&type=chunk) [Internal Control Over Financial Reporting](index=78&type=section&id=Internal%20Control%20Over%20Financial%20Reporting) For the three months ended September 30, 2024, company management identified no changes that materially affected or are reasonably likely to materially affect internal control over financial reporting - No changes materially affecting internal control over financial reporting were identified during the three months ended September 30, 2024[310](index=310&type=chunk) [Part II. Other Information](index=79&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) The company is a party to various legal proceedings in the ordinary course of business, but management does not expect any resulting contingent losses to materially adversely affect its consolidated financial condition or liquidity - The company is a party to various **legal proceedings** in the ordinary course of business[312](index=312&type=chunk) - Management does not believe that any resulting contingent losses will materially adversely affect the company's consolidated financial condition or liquidity[312](index=312&type=chunk) [Item 1A. Risk Factors](index=79&type=section&id=Item%201A.%20Risk%20Factors) No material changes occurred in the risk factors disclosed in the company's 2023 Form 10-K during this reporting period - No material changes occurred in the **risk factors** disclosed in the company's 2023 Form 10-K during this reporting period[314](index=314&type=chunk) - Investors should carefully consider the risk factors disclosed in the 2023 Form 10-K, which could materially affect the company's business, financial condition, operating results, cash flows, or future performance[313](index=313&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=79&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a board-approved stock repurchase program authorizing up to **4,297,000 shares** of common stock until December 31, 2024, with **300,000 shares** repurchased in Q3 2024 at an average price of **$50.64** per share - The company's board-approved stock repurchase program authorizes the repurchase of up to **4,297,000 shares** of common stock, effective until December 31, 2024[315](index=315&type=chunk) Summary of Common Stock Repurchases for Q3 2024 | Period | Total Number of Shares Purchased | Average Price Per Share (USD) | Total Number of Shares Purchased Under Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs | |:---|:---|:---|:---|:---| | July 1 - July 31, 2024 | 10,000 | 54.97 | 10,000 | 3,974,007 | | August 1 - August 31, 2024 | 261,037 | 50.24 | 260,000 | 3,714,007 | | September 1 - September 30, 2024 | 30,302 | 52.69 | 30,000 | 3,684,007 | | Total | 301,339 | 50.64 | 300,000 | | [Item 5. Other Information](index=79&type=section&id=Item%205.%20Other%20Information) During Q3 2024, no directors or executive officers adopted, terminated, or modified any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements - No directors or executive officers adopted, terminated, or modified any **Rule 10b5-1 trading arrangements** or non-Rule 10b5-1 trading arrangements during Q3 2024[318](index=318&type=chunk) [Item 6. Exhibits](index=79&type=section&id=Item%206.%20Exhibits) This report's exhibits list various filed documents, including the company's articles of incorporation, CEO and CFO certifications, and Inline XBRL documents - Exhibits include the company's articles of incorporation, **CEO and CFO certifications** under Sarbanes-Oxley Sections 302 and 906, and **Inline XBRL documents**[318](index=318&type=chunk) Signatures [Report Signatures](index=81&type=section&id=Report%20Signatures) This report was officially signed by John M. Hairston, President and CEO, and Michael M. Achary, Senior Executive Vice President and CFO of Hancock Whitney Corporation, on November 7, 2024 - The report was signed by **John M. Hairston**, President and CEO, and **Michael M. Achary**, Senior Executive Vice President and CFO[319](index=319&type=chunk) - The signing date was **November 7, 2024**[319](index=319&type=chunk)

Hancock Whitney Corp.'s (HWC) third-quarter 2024 earnings per share of $1.33 beat the Zacks Consensus Estimate of $1.31. The bottom line compared favorably with $1.12 per share registered in the year-ago quarter. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The results were aided by an increase in non-interest income and net interest income (NII). Lower expenses and provisions were positives. However, the decline in total loans and deposits affected the results to some extent. N ...

Core Insights - Hancock Whitney (HWC) reported revenue of $367.66 million for the quarter ended September 2024, reflecting a year-over-year increase of 3.5% [1] - The company's earnings per share (EPS) was $1.33, up from $1.12 in the same quarter last year, exceeding the Zacks Consensus Estimate of $1.31 [1] - The revenue surpassed the Zacks Consensus Estimate of $363.54 million, resulting in a surprise of +1.13% [1] Financial Performance Metrics - Efficiency Ratio stood at 54.4%, better than the five-analyst average estimate of 56.9% [3] - Net interest margin (TE) was reported at 3.4%, matching the average estimate based on five analysts [3] - Average balance of total interest-earning assets was $32.26 billion, slightly below the four-analyst average estimate of $32.45 billion [3] - Total net charge-offs as a percentage of average loans were 0.3%, higher than the 0.2% estimated by four analysts [3] - Total nonperforming assets amounted to $110.60 million, exceeding the two-analyst average estimate of $91.34 million [3] - Total nonperforming loans were reported at $82.87 million, compared to the $89.06 million average estimate based on two analysts [3] - Total noninterest income reached $95.90 million, surpassing the $89.47 million estimated by five analysts [3] - Net interest income (TE) was $274.46 million, slightly below the five-analyst average estimate of $277.21 million [3] - Net interest income was reported at $271.76 million, compared to the $273.79 million average estimate based on four analysts [3] - Secondary mortgage market operations generated $3.38 million, below the $3.58 million estimated by two analysts [3] - Other income was $18.83 million, exceeding the two-analyst average estimate of $14.30 million [3] - Bank card and ATM fees totaled $21.64 million, slightly below the $22.01 million average estimate based on two analysts [3] Stock Performance - Shares of Hancock Whitney have returned +5.9% over the past month, outperforming the Zacks S&P 500 composite's +4.3% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

Company Performance - Hancock Whitney (HWC) reported quarterly earnings of $1.33 per share, exceeding the Zacks Consensus Estimate of $1.31 per share, and up from $1.12 per share a year ago, representing an earnings surprise of 1.53% [1] - The company posted revenues of $367.66 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.13%, and an increase from $355.21 million year-over-year [2] - Hancock Whitney has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times in the same period [2] Stock Performance and Outlook - Hancock Whitney shares have increased approximately 9.2% since the beginning of the year, while the S&P 500 has gained 22.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.26 on revenues of $363.71 million, and for the current fiscal year, it is $5.14 on revenues of $1.44 billion [7] Industry Context - The Zacks Industry Rank indicates that the Banks - Southeast industry is currently in the bottom 34% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Analysts on Wall Street project that Hancock Whitney (HWC) will announce quarterly earnings of $1.31 per share in its forthcoming report, representing an increase of 17% year over year. Revenues are projected to reach $363.54 million, increasing 2.4% from the same quarter last year. Over the last 30 days, there has been a downward revision of 1.5% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial for ...

Hancock Whitney (HWC) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 15, 2024, might help the stock move higher if these key numbers are bette ...

Hancock Whitney (HWC) is well poised to benefit from its solid balance sheet, prospects of interest rate cuts and strategic efforts to bolster net interest margin (NIM) despite concerns related to high funding costs. Bullish Analyst Sentiments for HWC The Zacks Consensus Estimate for Hancock Whitney's 2024 and 2025 has been revised marginally upward over the past month. The positive estimate revision indicates that analysts are optimistic regarding the company's prospects and earnings potential. Estimate Re ...

Core Viewpoint - Hancock Whitney (HWC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Hancock Whitney for the fiscal year ending December 2024 is projected at $5.17 per share, reflecting a slight decrease of -0.2% from the previous year [9]. - Over the past three months, analysts have raised their earnings estimates for Hancock Whitney by 5.9% [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is tracked through EPS estimates from sell-side analysts [2]. - The system classifies stocks into five groups, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and has shown an impressive track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. Market Implications - The upgrade to Zacks Rank 2 places Hancock Whitney in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11]. - Rising earnings estimates and the corresponding rating upgrade indicate an improvement in Hancock Whitney's underlying business, which could lead to increased buying pressure and a higher stock price [6][4].