Hancock Whitney (HWC) Q2 2022 earnings summary

Executive summary

• Q2 net income was $121.4M, or $1.38 diluted EPS, versus $123.5M and $1.40 in Q1; Q2 2021 net income was $88.7M and included $42.2M of pretax nonoperating expenses.

• PPNR reached $146.9M, up $12.4M, or 9%, QoQ; NIM rose 23 bps to 3.04%, while the 54.95% efficiency ratio met the 55% target early.

• Core loan growth and improving asset quality supported results; deposits declined seasonally, and management cited solid capital positioning amid macro uncertainty.

Financial highlights

• Net interest income (TE) was $248.3M, up $17.3M, or 7%, QoQ; noninterest income increased 3% to $85.7M.

• Noninterest expense rose 4% QoQ to $187.1M, including personnel expense up 7% to $115.2M from merit raises, incentives, added headcount, an extra workday and inflation.

• Total revenue was $331.4M and net income was $121.4M for Q2; diluted EPS was $1.38 versus $1.40 in Q1 and $1.00 in Q2 2021.

• Q2 2021 included $42.2M of pretax nonoperating expenses; Q2 2022 had no nonoperating items.

Outlook and guidance

• 2022 core loan growth guidance remained 6%–8%, with bias toward the upper end; growth is expected to moderate in Q3 and rebound toward year-end.

• 2022 period-end deposits are expected to be flat to slightly down versus year-end 2021.

• NIM is expected to widen further in H2 2022; lower secondary mortgage fees are expected to persist as rates rise.