Hancock Whitney (US:HWC)2021-08-05 00:28Financial Performance - Net income for the three months ended June 30, 2021, was $88,718 thousand, a recovery from a net loss of $(117,072) thousand in the same period of 2020[16]. - Earnings per share for the three months ended June 30, 2021, was $1.00, compared to a loss per share of $(1.36) for the same period in 2020[16]. - Comprehensive income for the three months ended June 30, 2021, was $163,023 thousand, compared to a loss of $(87,612) thousand in the same period of 2020, indicating a strong recovery[18]. - Net income for the three months ended June 30, 2021, was $195,890, compared to a net loss of $228,105 for the same period in 2020, representing a significant turnaround[23]. - Net income for Q2 2021 was $88.7 million, or $1.00 per diluted share, down from $107.2 million, or $1.21 per share in Q1 2021[187]. Asset and Deposit Growth - Total assets increased to $35,098,709 thousand as of June 30, 2021, up from $33,638,602 thousand at December 31, 2020, representing a growth of 4.3%[14]. - The total deposits increased to $29,273,107 thousand as of June 30, 2021, up from $27,697,877 thousand at December 31, 2020, representing a growth of 5.7%[14]. - The company reported a net increase in deposits of $1,575,231 for the six months ended June 30, 2021, compared to $3,518,693 in the same period of 2020[23]. Credit Quality and Losses - The provision for credit losses was $(17,229) thousand for the three months ended June 30, 2021, compared to $306,898 thousand for the same period in 2020, indicating a significant improvement in credit quality[16]. - The provision for credit losses for the six months ended June 30, 2021, was $(22,140), a significant decrease from $553,691 in the same period of 2020[23]. - The net provision for loan losses was $(21,757) thousand, indicating a reduction in reserves[55]. - The net provision for loan losses was $548,424 thousand for the six months ended June 30, 2021, compared to $191,251 thousand for the same period in 2020, representing a substantial increase of 187%[57]. - Nonperforming loans declined by 24% and criticized commercial loans decreased by 5%[189]. Noninterest Income and Expenses - Noninterest income increased to $94,272 thousand for the three months ended June 30, 2021, up from $73,943 thousand in the same period of 2020, reflecting a growth of 27.4%[16]. - Total noninterest expense for the three months ended June 30, 2021, was $236,770 thousand, compared to $196,539 thousand for the same period in 2020, an increase of 20.5%[16]. - The company reported total other noninterest income of $17,881,000 for the three months ended June 30, 2021, compared to $13,134,000 for the same period in 2020, reflecting an increase of approximately 36.5%[112]. Securities and Investments - As of June 30, 2021, the total amortized cost of available-for-sale debt securities was $7,190,161, with a fair value of $7,300,421, reflecting a gross unrealized gain of $167,593[34]. - The company reported proceeds from sales of securities totaling $198,681 for the six months ended June 30, 2021, compared to $124,122 for the same period in 2020, indicating a significant increase in activity[36]. - The fair value of securities pledged as collateral was $3.0 billion at June 30, 2021, down from $3.4 billion at December 31, 2020, reflecting a decrease in collateralized assets[36]. Loans and Lending Activities - The total loans as of June 30, 2021, amounted to $21,148.53 million, a decrease from $21,789.93 million as of December 31, 2020, representing a decline of approximately 2.9%[45]. - The company reported a total of $71.5 million in accrued interest as of June 30, 2021, compared to $76.2 million as of December 31, 2020[44]. - The company reported a net increase in loans of $670,795 for the six months ended June 30, 2021, compared to a net decrease of $(2,029,351) in the same period of 2020[23]. Risk Management and Economic Outlook - The company anticipates a GDP growth of 6.9% in 2021, 5.0% in 2022, and 2.3% in 2023, indicating a positive economic outlook[57]. - Management highlighted the potential impact of COVID-19 on business operations and credit portfolio, emphasizing the need for effective risk management[165]. - The company expects net interest margin to compress an additional 4 basis points in Q3 2021 and 5 basis points in Q4 2021, with an anticipated full-year decline of 30 basis points compared to 2020[197]. Shareholder Returns and Stock Activity - The company declared dividends of $0.27 per share for both the three months ended June 30, 2021, and 2020, maintaining consistent dividend payments[16]. - The Company entered into a stock buyback program on April 22, 2021, authorizing the repurchase of up to 4.3 million shares of common stock[101]. - The Company repurchased 4.9 million shares under a previous buyback program at an average price of $37.65 per share[102].