On July 16, 2024, Hancock Whitney Corp (HWC, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Hancock Whitney Corp operates bank offices and financial centers, offering a range of traditional and online banking services to commercial, small business, and retail customers.
Quarterly Performance Highlights
Hancock Whitney Corp reported a net income of $114.6 million for Q2 2024, translating to an earnings per share (EPS) of $1.31. This compares to $108.6 million, or $1.24 per diluted share, in the previous quarter. The company’s net income for the same quarter last year was $117.8 million, or $1.35 per diluted share.
Key financial metrics for Q2 2024 include:
- Adjusted pre-provision net revenue (PPNR) of $156.4 million, up from $152.9 million in Q1 2024.
- Net interest margin (NIM) of 3.37%, an increase of 5 basis points from the prior quarter.
- Common Equity Tier 1 (CET1) ratio estimated at 13.25%, up 60 basis points linked-quarter.
- Efficiency ratio of 56.18%, down 26 basis points from the previous quarter.
Loan and Deposit Trends
Total loans stood at $23.9 billion as of June 30, 2024, reflecting a slight decrease of $59.3 million from the previous quarter. The decrease was primarily attributed to the runoff of a Shared National Credit portfolio. Average loans for the quarter were $23.9 billion, up $107.2 million from Q1 2024.
Total deposits decreased by $575.2 million to $29.2 billion, driven by seasonal decreases in interest-bearing deposits and maturities in brokered deposits. Despite these declines, retail time deposits saw an increase of $64.6 million.
Asset Quality and Capital Ratios
The allowance for credit losses (ACL) was $342.2 million at the end of Q2 2024, up $1.4 million from the previous quarter. The provision for credit losses was $8.7 million, down from $13.0 million in Q1 2024. Net charge-offs were $7.3 million, or 0.12% of average total loans on an annualized basis.
Criticized commercial loans totaled $379.8 million, or 2.05% of total commercial loans, up from $339.9 million in the previous quarter. Nonaccrual loans were $86.3 million, or 0.36% of total loans, compared to $82.1 million in Q1 2024.
Net Interest Income and Noninterest Income
Net interest income for Q2 2024 was $273.3 million, a 2% increase from the previous quarter. The net interest margin improved to 3.37%, driven by higher loan and securities yields.
Noninterest income totaled $89.2 million, up 2% from Q1 2024. This increase was primarily due to higher bank card and ATM fees, which rose by $1.2 million, or 6%, due to increased customer activity. Trust fees also saw an 8% increase, while investment and annuity income and insurance fees declined by 17%.
Noninterest Expense and Capital Management
Noninterest expense for Q2 2024 was $206.0 million, down 1% from the previous quarter. Personnel expenses decreased by $2.4 million due to lower incentives and payroll taxes. The company also reported a net gain of $1.1 million from other real estate and foreclosed assets.
Hancock Whitney Corp’s common stockholders’ equity increased by $67.3 million to $3.9 billion. The tangible common equity (TCE) ratio improved to 8.77%, and the CET1 ratio was estimated at 13.25%. During the quarter, the company repurchased 312,993 shares of its common stock at an average price of $46.69 per share.
Conclusion
Hancock Whitney Corp's Q2 2024 performance demonstrates solid profitability and strong capital ratios, despite challenges in loan and deposit growth. The company's focus on improving net interest margin and controlling expenses has contributed to its positive financial results. Investors and stakeholders can access the full details of the earnings report in the 8-K filing.
Explore the complete 8-K earnings release (here) from Hancock Whitney Corp for further details.
