Hancock Whitney (US:HWC)2020-10-20 20:31Financial Performance - Net income was $794 million, compared to a loss of $1171 million in 2Q20[8] - Pre-provision net revenue (PPNR) increased by $78 million, a 7% linked-quarter increase, totaling $1263 million[8] - The provision for credit losses was $25 million, and net charge-offs totaled $24 million; the allowance for credit losses (ACL) remained strong at 240% excluding PPP loans[8] - Net interest margin (NIM) remained stable at 323%[9] Loan Portfolio - Total loans amounted to $222 billion, a decrease of $388 million linked-quarter, reflecting the current economic environment[8, 12] - The company originated over 13000 PPP loans totaling $24 billion in rounds 1 and 2 of the program, with 11874 loans, or $785 million, in loans less than $350K[6, 14] - Energy loans accounted for $338 million, representing 17% of total loans, a decrease of $14 million, or 4%, linked-quarter[16, 23] Deposits and Capital - Total deposits decreased by $292 million linked-quarter, mainly due to a reduction in brokered CD funding, reaching $270 billion[8, 6] - The CET1 ratio increased to 1029%, up 51 bps, and the TCE ratio increased to 753%, up 20 bps[9] Expenses and Revenue - Noninterest expense totaled $1958 million, down $08 million, or less than 1%, linked-quarter[49, 50] - Noninterest income totaled $837 million, up $98 million, or 13% linked-quarter[48] Other Key Points - The overactive hurricane season impacted several Gulf Coast markets, but no material provision expense is expected from the impact of the hurricanes[10] - Criticized commercial loans increased by $64 million, or 18%, linked-quarter, reflecting the economic impact of COVID-19 on many clients[8] - Deferrals peaked on 5/14/20 at $36 billion of outstandings; totaled $284 million at 9-30-20[25]