Hancock Whitney (HWC) Q3 2022 earnings summary

Executive summary

• Q3 net income was $135.4M, or $1.55 diluted EPS, versus $121.4M and $1.38 in Q2; PPNR rose 19% QoQ to $174.7M.

• Strong loan growth and Fed rate increases lifted NIM 50 bps QoQ to 3.54%; deposits fell 3% QoQ as excess liquidity funded part of loan growth.

• Asset quality remained near historically low levels; CET1 was estimated at 11.12%.

Financial highlights

• Q3 net interest income was $280.3M GAAP and $282.9M TE, up 14% TE QoQ; nine-month net income was $380.3M versus $325.5M YoY.

• Noninterest income was $85.3M, down less than 1% QoQ; noninterest expense rose 3% to $193.5M.

• Q3 provision for credit losses was $1.4M, versus a negative $9.8M provision in Q2; income tax expense was $35.4M and the effective tax rate was 20.7%.

• Q3 2021 included $1.4M after-tax net nonoperating income, including a $4.6M gain on sale of Hancock Horizon Funds, offset by Hurricane Ida costs and a severance reversal.

Outlook and guidance

• Total loan growth expected at 8–9% for year-end 2022 versus year-end 2021.

• Period-end deposits expected to decline 3–4% in 2022 versus year-end 2021, including seasonal year-end growth in Q4.

• Certain NSF and overdraft fees scheduled to begin elimination in December 2022.