Hancock Whitney (HWC) Q1 2022 earnings summary

Executive summary

• Q1 2022 net income was $123.5 million, or $1.40 diluted EPS, versus $137.7 million/$1.55 in Q4 2021 and $107.2 million/$1.21 in Q1 2021; Q1 had no nonoperating items.

• Core loans grew $385.3 million, or 8% LQA, offsetting $196.2 million of PPP forgiveness; NIM widened 1 bp QoQ to 2.81%.

Financial highlights

• Operating PPNR (TE) was $134.5 million, slightly above $134.2 million in Q4 2021; total revenue was $311.9 million and noninterest expense was $179.9 million.

• Net interest income (TE) was $231.0 million, down $0.9 million QoQ; noninterest income was $83.4 million, down 7% reported and 3% excluding Q4 storm-insurance proceeds.

• Noninterest expense fell 1% QoQ to $179.9 million; excluding Q4 nonoperating expense items, operating expense declined $3.9 million, or 2%.

• Deposits were $30.5 billion, up $33.8 million QoQ; noninterest-bearing demand deposits rose $583.9 million to $15.0 billion, 49% of period-end deposits.

Outlook and guidance

• 2022 core loan growth expected at 6–8%, with quarterly results reflecting normal seasonality; period-end deposits expected flat to slightly down versus year-end 2021.

• NIM expected to widen during 2022 on anticipated rate hikes; rising rates are expected to weigh on secondary mortgage fees as refinancing activity slows.