On October 17, 2023, Hancock Whitney Corp (HWC, Financial) announced its financial results for the third quarter of 2023. The company reported a net income of $97.7 million, or $1.12 per diluted common share (EPS), compared to $117.8 million, or $1.35 per diluted common share, in the second quarter of 2023. The company's net income for the third quarter of 2022 was $135.4 million, or $1.55 per diluted common share.
Financial Highlights
The company's third-quarter net income was impacted by an "idiosyncratic" charge-off of $29.7 million. Pre-provision net revenue (PPNR) totaled $153.4 million, compared to $157.8 million in Q2 2023. Deposits increased by $277 million, or 4% LQA, and loan growth was reported at $194 million, or 3% LQA. The company's ACL coverage remained solid at 1.40%, and the NIM was 3.27%, compared to 3.30% in Q2 2023. The CET1 ratio was estimated at 12.04%, up 21 bps linked-quarter, and the TCE ratio was 7.34%, compared to 7.50% in Q2 2023.
CEO's Commentary
Third quarter of 2023 results reflect the continued strength and stability of our Company," said John M. Hairston, President & CEO. "Despite the ongoing challenges in today’s operating environment, we were able to fully fund loan growth with client deposit growth."
Loan and Deposit Details
Total loans were $24.0 billion at the end of September 2023, up $193.8 million, or 1%, from June 2023. Total deposits at the end of September 2023 were $30.3 billion, up $276.8 million, or 1%, from June 2023. The growth in deposits was primarily due to an increase in interest-bearing transaction and savings deposits.
Asset Quality and Capital
The total allowance for credit losses (ACL) was $335.9 million at the end of September 2023, down $9.8 million, or 3%, from June 2023. The company's CET1 ratio is estimated to be 12.04% at the end of September 2023, up 21 bps linked-quarter. The company’s share buyback authorization is set to expire on December 31, 2024.
