Business Wire | Jan 20, 2021 04:00PM EST

Hancock Whitney Reports Fourth Quarter 2020 EPS Of $1.17

Jan. 20, 2021

GULFPORT, Miss.--(BUSINESS WIRE)--Jan. 20, 2021--Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the fourth quarter of 2020. Net income for the fourth quarter of 2020 was $103.6 million, or $1.17 per diluted common share (EPS), compared to $79.4 million, or $0.90 per diluted common share, in the third quarter of 2020. Net income for the fourth quarter of 2019 was $92.1 million, or $1.03 per diluted common share. The fourth quarter of 2019 included $3.9 million ($.03 per share impact) of final merger costs associated with the September 2019 acquisition of MidSouth Bancorp, Inc.

Fourth Quarter 2020 Highlights

* Tax strategies implemented in the fourth quarter added $0.21 to 4Q earnings * Pre-provision net revenue (PPNR) totaled $130.6 million, up $4.3 million, or 3%, linked-quarter * Allowance for credit losses (ACL) remains strong at 2.20% (2.42% excluding PPP loans); 4Q20 provision totaled $24.2 million, net charge-offs totaled $24.3 million * Net interest margin (NIM) remained stable at 3.22% (down 1 bp linked-quarter) * Nonperforming loans declined $37 million, or 20%, criticized commercial loans declined $19 million, or 5%, linked-quarter * CET1 ratio 10.70%(e), up 40 bps; TCE ratio 7.64%, up 11 bps * Loans declined $450 million linked-quarter, mostly from $318 million in net Paycheck Protection Program (PPP) loan forgiveness during the quarter * Deposits increased $667 million linked-quarter, mainly related to pandemic-related deposit growth and seasonal year-end inflows

"The fourth quarter was a strong finish to a very challenging year," said John M. Hairston, President and CEO. "Reported earnings were up 31% as we implemented several tax strategies at year-end that allowed us to partially recoup losses booked earlier in the year. In addition, core results remained solid with pre-provision net revenue up over $4 million, or 3%, linked-quarter. Our margin was stable, asset quality metrics improved, expenses were down and fees outside of specialty and mortgage lines of business improved. We continued to rebuild our capital in the quarter while maintaining our dividend at current levels. As we begin the new year, we recognize pandemic-related headwinds still exist, however we look forward to improved performance in 2021 and believe we are well-positioned to continue execution of strategies designed to enhance shareholder value."

LoansLoans totaled $21.8 billion at December 31, 2020, down $450 million, or 2%, linked-quarter. During the fourth quarter of 2020, $318 million, net, of PPP loans were forgiven, contributing to the majority of the decline in the quarter. Modest growth in our markets, mainly in commercial, was offset by net declines in other business lines such as energy and indirect. While mortgage originations remained strong given today's low rate environment, activity has slowed somewhat, with most loans being sold in the secondary market.

Average loans totaled $22.1 billion for the fourth quarter of 2020, down 2% linked-quarter.

Management expects loans to decline once again in the first quarter of 2021, as significantly more PPP loans are forgiven and opportunities for new organic growth remain low in light of the slow economic environment. The company will participate in the extended CARES Act Paycheck Protection Program, and expects new loan growth to partially offset the declines noted above.

DepositsTotal deposits at December 31, 2020 were $27.7 billion, up $667 million, or 2%, from September 30, 2020. Almost half of the quarterly increase was in noninterest-bearing deposits related to stimulus and other pandemic-related growth, as well as seasonal year-end deposit inflows and new account generation.

DDAs totaled $12.2 billion at December 31, 2020, up $318 million, or 3%, from September 30, 2020 and comprised 44% of total period-end deposits at December 31, 2020. Interest-bearing transaction and savings deposits totaled $10.4 billion at the end of the fourth quarter of 2020, up $442.0 million, or 4%, linked-quarter. Compared to September 30, 2020, time deposits of $1.8 billion were down $151.7 million, or 8%. Interest-bearing public fund deposits increased $58.7 million, or 2%, to $3.2 billion.

Average deposits for the fourth quarter of 2020 were $27.0 billion, up $276.7 million, or 1%, linked-quarter.

Asset QualityThe total allowance for credit losses was $480.1 million at December 31, 2020, virtually unchanged from September 30, 2020. During the fourth quarter of 2020, the company recorded a total provision for credit losses of $24.2 million, slightly lower compared to $25.0 million in the third quarter of 2020. Net charge-offs totaled $24.3 million in the fourth quarter of 2020, or 0.44% of average total loans on an annualized basis, up slightly from $24.0 million, 0.43% of average total loans in the third quarter of 2020. Included in the fourth quarter's net charge-offs are $4.0 million of energy credits, $13.6 million in healthcare dependent credits and $6.7 million of various other credits.

The ratio of ACL to period-end loans was 2.20% (2.42% excluding PPP loans) at December 31, 2020, compared to 2.16% (2.40% excluding PPP loans) at September 30, 2020.

The company continues to evaluate certain credits in light of the ongoing financial challenges some companies are having as a result of the COVID-19 pandemic shutdown in certain markets. Included on slide 11 in the earnings deck, are the sectors under focus related to the economic impact of the pandemic, and details regarding the status of loans within those lines of business. As of the end of the year, there were only $13 million in COVID-related deferrals compared to a peak of $3.6 billion in May. The company has converted approximately $336 million in loans to structured solutions, or modified loans, for businesses still impacted by the pandemic.

Despite today's economic challenging environment, the company's overall asset quality metrics continued to improve with both commercial criticized and total nonperforming loans down 5% and 20%, respectively, linked-quarter. Nonperforming assets (NPAs) totaled $155.8 million at December 31, 2020, down $36.4 million, or 19%, from September 30, 2020. During the fourth quarter of 2020, total nonperforming loans decreased $36.4 million, or 20%, while ORE and foreclosed assets remained virtually unchanged. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 0.71% at December 31, 2020, down 15 bps from September 30, 2020.

Net Interest Income and Net Interest Margin (NIM)Net interest income (TE) for the fourth quarter of 2020 was $241.4 million, up $3.0 million, or 1%, from the third quarter of 2020. The net interest margin (TE) was relatively stable at 3.22% in the fourth quarter, a decline of only 1 basis point linked-quarter.

A change in earning asset mix that compressed the NIM 6 bps was mostly offset by a lower cost of funds that helped expand the NIM 5 bps. Growth in earning assets from excess liquidity was deployed in the bond portfolio, driving an increase in net interest income.

As we begin 2021, management expects the first quarter of 2021 NIM to compress as much as 10 bps due to high levels of excess liquidity and net PPP activity (forgiveness versus funding).

Average earning assets were $29.9 billion for the fourth quarter of 2020, up $463.3 million, or 2%, from the third quarter of 2020.

Noninterest IncomeNoninterest income totaled $82.4 million for the fourth quarter of 2020, down $1.3 million, or 2%, from the third quarter of 2020. Improvement was noted in many fee categories as the economy continues to re-open and consumer spending increases, though not to pre-pandemic levels. Low interest rates supported continued mortgage refinance activity, and certain specialty income categories contributed to growth in the quarter, albeit at lower levels. Similar levels of mortgage and specialty income are not expected in the first quarter of 2021.

Increased activity was noted in service charges on deposits, up $1.4 million, or 8%, from the third quarter of 2020, and bank card and ATM fees, up $0.4 million, or 2%, from the third quarter.

Investment and annuity income and insurance fees were down $0.2 million, or 3%, linked-quarter. Trust fees were up $0.4 million, or 3% linked-quarter, primarily from increased value of assets under management.

Fees from secondary mortgage operations totaled $11.5 million for the fourth quarter of 2020, down $1.4 million, or 11%, linked-quarter, as refinancing activity slowed down from peak levels earlier in the year.

Other noninterest income totaled $12.8 million, down $1.9 million, or 14%, from the third quarter of 2020. The increase in other noninterest income is primarily due to a lower level of specialty income (BOLI), partially offset by higher derivative income.

Noninterest Expense & TaxesNoninterest expense totaled $193.1 million, down $2.7 million, or 1% linked-quarter. As noted last quarter, our focus on expense control in light of the current environment was enhanced, with initiatives put in place to improve overall efficiency. Over the past several months we have closed, or announced the closure of 20 financial offices across the footprint, closed the 2 trust offices in the NE corridor, reduced headcount by 210 FTE via attrition and other initiatives compared to June 30, 2020, and recently announced an early retirement package for certain employees.

Total personnel expense was $112.2 million in the fourth quarter of 2020, down $5.6 million, or 5%, from the third quarter of 2020. The decline is related to savings from efficiency measures taken to-date including staff attrition and branch closures.

Occupancy and equipment expense totaled $17.8 million in the fourth quarter of 2020, down $0.7 million, or 4%, from the third quarter of 2020. Amortization of intangibles totaled $4.6 million for the fourth quarter of 2020, down $0.2 million, or 4%, linked-quarter.

Other real estate and foreclosed assets (ORE) expense increased $0.8 million linked-quarter. The fourth quarter's expense reflected a more normal quarterly expense amount compared to income in the third quarter of 2020.

Other operating expense totaled $58.1 million in the fourth quarter of 2020, up $3.0 million, or 6%, from the third quarter of 2020, mostly related to nonrecurring hurricane-related expenses and branch closures.

Tax strategies implemented at year-end, mainly related to the company's year-to-date net operating loss (NOL), led to a $0.3 million tax benefit for the fourth quarter of 2020. This benefit was related to NOL carryback provisions in the CARES Act and added $0.21 per share to earnings for the quarter. The company expects the tax rate to return to a normal quarterly range of 18-20% in 2021, absent any changes in tax laws. The effective income tax rate continues to be less than the statutory rate due primarily to tax-exempt income and tax credits.

CapitalCommon stockholders' equity at December 31, 2020 totaled $3.4 billion, up $63.4 million, or 2%, from September 30, 2020. The tangible common equity (TCE) ratio was 7.64%, up 11 bps from September 30, 2020, as the company continued rebuilding capital after de-risking strategies were implemented in the first half of 2020. A full reconciliation of the quarterly change is included in our slide presentation. The company remains well capitalized, with both bank and holding company capital levels in excess of required regulatory minimums. The company's CET1 ratio is estimated to be 10.70% at December 31, 2020. The company intends to pay its next quarterly dividend and is in consultation with its examiners, while the Board reviews the dividend payout policy quarterly.

Conference Call and Slide PresentationManagement will host a conference call for analysts and investors at 4:00 p.m. Central Time on Wednesday, January 20, 2021 to review the results. A live listen-only webcast of the call will be available under the Investor Relations section of Hancock Whitney's website at www.investors.hancockwhitney.com. A link to the release with additional financial tables, and a link to a slide presentation related to fourth quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial 866-270-1533 or 412-317-0797. An audio archive of the conference call will be available under the Investor Relations section of our website. A replay of the call will also be available through January 25, 2021 by dialing 877-344-7529 or 412-317-0088, access code 10151062.

About Hancock WhitneySince the late 1800s, Hancock Whitney has embodied core values of Honor & Integrity, Strength & Stability, Commitment to Service, Teamwork, and Personal Responsibility. Hancock Whitney offices and financial centers in Mississippi, Alabama, Florida, Louisiana, and Texas offer comprehensive financial products and services, including traditional and online banking; commercial and small business banking; private banking; trust and investment services; healthcare banking; certain insurance services; and mortgage services. The company also operates a loan production office in Nashville, Tennessee. BauerFinancial, Inc., the nation's leading independent bank rating and analysis firm, consistently recommends Hancock Whitney as one of America's most financially sound banks. More information is available at www.hancockwhitney.com.

Non-GAAP Financial MeasuresThis news release includes non-GAAP financial measures to describe Hancock Whitney's performance. These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. The reconciliations of those measures to GAAP measures are provided either in the financial tables or in Appendix A thereto.

Consistent with Securities and Exchange Commission Industry Guide 3, the company presents net interest income, net interest margin and efficiency ratios on a fully taxable equivalent ("TE") basis. The TE basis adjusts for the tax-favored status of net interest income from certain loans and investments using the statutory federal tax rate to increase tax-exempt interest income to a taxable equivalent basis. The company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

The company presents certain additional non-GAAP financial measures to assist the reader with a better understanding of the company's performance period over period, as well as to provide investors with assistance in understanding the success management has experienced in executing its strategic initiatives. These non-GAAP measures may reference the concept "operating." The company uses the term "operating" to describe a financial measure that excludes income or expense considered to be nonoperating in nature. Items identified as nonoperating are those that, when excluded from a reported financial measure, provide management or the reader with a measure that may be more indicative of forward-looking trends in the company's business.

Important Cautionary Statement about Forward-Looking StatementsThis news release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements that we may make include statements regarding our expectations regarding our performance and financial condition, balance sheet and revenue growth, the provision for credit losses, loan growth expectations, management's predictions about charge-offs for loans, including energy-related credits, the impact of COVID-19 pandemic on the economy and our operations, the adequacy of our enterprise risk management framework, the impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, success of revenue-generating initiatives, the effectiveness of derivative financial instruments and hedging activities to manage risks, projected tax rates, increased cybersecurity risks, including potential business disruptions or financial losses, the adequacy of our internal controls over financial reporting, the financial impact of regulatory requirements and tax reform legislation (including potential future legislation enacted as a result of the 2020 election), the impact of the change in the referenced rate reform, deposit trends, credit quality trends, the impact of PPP loans and forgiveness on our results, changes in interest rates, net interest margin trends, future expense levels, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts, accretion levels and expected returns.

Given the many unknowns and risks being heavily weighted to the downside, our forward-looking statements are subject to the risk that conditions will be substantially different than we are currently expecting. If efforts to contain and inoculate our population against COVID-19 are unsuccessful and restrictions on movement last into the first half of 2021, the recession may increase in length and severity. The deeper the recession is, and the longer it lasts, the more it will damage consumer fundamentals and sentiment. Similarly, the recession could damage business fundamentals, and an extended global recession due to COVID-19 would weaken the U.S. recovery. As a result, the outbreak and its consequences, including responsive measures to manage it, have had and are likely to continue to have an adverse effect, possibly materially, on our business and financial performance by adversely affecting, possibly materially, the demand and profitability of our products and services, the valuation of assets and our ability to meet the needs of our customers.

In addition, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words "believes," "expects," "anticipates," "estimates," "intends," "plans," "forecast," "goals," "targets," "initiatives," "focus," "potentially," "probably," "projects," "outlook", or similar expressions or future conditional verbs such as "may," "will," "should," "would," and "could." Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. Forward-looking statements are subject to significant risks and uncertainties. Any forward-looking statement made in this release is subject to the safe harbor protections set forth in the Private Securities Litigation Reform Act of 1995. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2019, in Part II, "Item 1A. Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and in other periodic reports that we file with the SEC.

HANCOCK WHITNEY CORPORATIONFINANCIAL HIGHLIGHTS(Unaudited) Three Months Ended Twelve Months Ended(dollars and commonshare data in 12/31/2020 9/30/2020 12/31/2019 12/31/2020 12/31/2019thousands, exceptper share amounts)NET INCOMENet interest income $ 238,286 $ 235,183 $ 233,156 $ 942,523 $ 895,217

Net interest income 241,401 238,372 236,736 955,523 909,991 (TE) (a)Provision for 24,214 24,999 9,156 602,904 47,708 credit lossesNoninterest income 82,350 83,748 82,924 324,428 315,907

Noninterest expense 193,144 195,774 197,856 788,792 770,677

Income tax expense (297 ) 18,802 16,936 (79,571 ) 65,359 (benefit)Net income (loss) $ 103,575 $ 79,356 $ 92,132 $ (45,174 ) $ 327,380

For informationalpurposes - includedabove, pre-taxProvision forcredit loss $ - $ - $ - $ 160,101 $ - associated withenergy loan saleNonoperating - - 3,856 - 32,666 merger-relatedexpensesPERIOD-END BALANCESHEET DATALoans $ 21,789,931 $ 22,240,204 $ 21,212,755 $ 21,789,931 $ 21,212,755

Securities 7,356,497 7,056,276 6,243,313 7,356,497 6,243,313

Earning assets 30,616,277 30,179,103 27,622,161 30,616,277 27,622,161

Total assets 33,638,602 33,193,324 30,600,757 33,638,602 30,600,757

Noninterest-bearing 12,199,750 11,881,548 8,775,632 12,199,750 8,775,632 depositsTotal deposits 27,697,877 27,030,659 23,803,575 27,697,877 23,803,575

Common 3,439,025 3,375,644 3,467,685 3,439,025 3,467,685 stockholders'equityAVERAGE BALANCESHEET DATALoans $ 22,065,672 $ 22,407,825 $ 21,037,942 $ 22,166,523 $ 20,380,027

Securities (b) 6,921,099 6,389,214 6,201,612 6,398,749 5,864,228

Earning assets 29,875,531 29,412,261 27,441,459 29,235,313 26,476,900

Total assets 33,067,462 32,685,430 30,343,293 32,390,967 29,125,449

Noninterest-bearing 11,759,755 11,585,617 8,601,323 10,779,570 8,255,859 depositsTotal deposits 27,040,447 26,763,795 23,848,374 26,212,317 23,299,304

Common 3,406,646 3,351,593 3,473,693 3,433,099 3,302,696 stockholders'equityCOMMON SHARE DATAEarnings (loss) per $ 1.17 $ 0.90 $ 1.03 $ (0.54 ) $ 3.72 share - dilutedCash dividends per 0.27 0.27 0.27 1.08 1.08 shareBook value per 39.65 39.07 39.62 39.65 39.62 share (period-end)Tangible book value 28.79 28.11 28.63 28.79 28.63 per share(period-end)Weighted average 86,657 86,400 88,315 86,533 86,599 number of shares -dilutedPeriod-end number 86,728 86,400 87,515 86,728 87,515 of sharesMarket dataHigh sales price $ 34.89 $ 22.23 $ 44.42 $ 44.24 $ 44.74

Low sales price 18.59 17.42 35.45 14.32 33.63

Period-end closing 34.02 18.81 43.88 34.02 43.88 priceTrading volume 27,564 32,139 30,850 158,267 115,887

PERFORMANCE RATIOSReturn on average 1.25 % 0.97 % 1.20 % (0.14 ) 1.12 %assets %

Return on average 12.10 % 9.42 % 10.52 % (1.32 ) 9.91 %common equity %

Return on average 16.74 % 13.14 % 14.62 % (1.82 ) 13.66 %tangible common %equityTangible common 7.64 % 7.53 % 8.45 % 7.64 % 8.45 %equity ratio (c)Net interest margin 3.22 % 3.23 % 3.43 % 3.27 % 3.44 %(TE)Noninterest income 25.44 % 26.00 % 25.94 % 25.35 % 25.77 %as a percent oftotal revenue (TE)Efficiency ratio 58.23 % 59.29 % 58.88 % 60.07 % 58.50 %(d)Average loan/ 81.60 % 83.72 % 88.22 % 84.57 % 87.47 %deposit ratioAllowance for loanlosses as a 2.07 % 2.02 % 0.90 % 2.07 % 0.90 %percentage ofperiod-end loansAllowance forcredit losses as a 2.20 % 2.16 % 0.92 % 2.20 % 0.92 %percent ofperiod-end loans(e)Annualized net 0.44 % 0.43 % 0.18 % 1.78 % 0.23 %charge-offs toaverage loansAllowance for loanlosses to 305.20 % 234.89 % 60.97 % 305.20 % 60.97 %nonperforming loans+ accruing loans 90days past dueFTE headcount 3,986 4,058 4,136 3,986 4,136

(a) Taxable equivalent (TE) amounts are calculated using a federal income taxrate of 21%.(b) Average securities does not include unrealized holding gains/losses onavailable for sale securities.(c) The tangible common equity ratio is common shareholders' equity lessintangible assets divided by total assets less intangible assets.(d) The efficiency ratio is noninterest expense to total net interest income(TE) and noninterest income, excluding amortization of purchased intangiblesand nonoperating items.(e) The allowance for credit losses includes the allowance for loan and leaselosses and the reserve for unfunded lending commitments.HANCOCK WHITNEY CORPORATIONQUARTERLY FINANCIAL HIGHLIGHTS(Unaudited)Three Months Ended(dollars and common share data in thousands, except per share amounts)12/31/20209/30/20206/30/20203/31/202012/31/2019NET INCOMENet interest income$

238,286

$

235,183

$

237,866

$

231,188

$

233,156

Net interest income (TE) (a)241,401

238,372

241,114

234,636

236,736

Provision for credit losses24,214

24,999

306,898

246,793

9,156

Noninterest income82,350

83,748

73,943

84,387

82,924

Noninterest expense193,144

195,774

196,539

203,335

197,856

Income tax expense (benefit)(297

)

18,802

(74,556

)

(23,520

)

16,936

Net income (loss)$

103,575

$

79,356

$

(117,072

)

$

(111,033

)

$

92,132

For informational purposes - included above, pre-taxProvision for credit loss associated with energy loan sale$

-

$

-

$

160,101

$

-

$

-

Nonoperating merger-related expenses-

-

-

-

3,856

PERIOD-END BALANCE SHEET DATALoans$

21,789,931

$

22,240,204

$

22,628,377

$

21,515,681

$

21,212,755

Securities7,356,497

7,056,276

6,381,803

6,374,490

6,243,313

Earning assets30,616,277

30,179,103

30,134,790

28,834,072

27,622,161

Total assets33,638,602

33,193,324

33,215,400

31,761,693

30,600,757

Noninterest-bearing deposits12,199,750

11,881,548

11,759,085

9,204,631

8,775,632

Total deposits27,697,877

27,030,659

27,322,268

25,008,496

23,803,575

Common stockholders' equity3,439,025

3,375,644

3,316,157

3,421,064

3,467,685

AVERAGE BALANCE SHEET DATALoans$

22,065,672

$

22,407,825

$

22,957,032

$

21,234,016

$

21,037,942

Securities (b)6,921,099

6,389,214

6,129,616

6,149,432

6,201,612

Earning assets29,875,531

29,412,261

30,013,829

27,630,652

27,441,459

Total assets33,067,462

32,685,430

33,136,706

30,663,601

30,343,293

Noninterest-bearing deposits11,759,755

11,585,617

10,989,921

8,763,359

8,601,323

Total deposits27,040,447

26,763,795

26,702,622

24,327,242

23,848,374

Common stockholders' equity3,406,646

3,351,593

3,465,617

3,509,727

3,473,693

COMMON SHARE DATAEarnings (loss) per share - diluted$

1.17

$

0.90

$

(1.36

)

$

(1.28

)

$

1.03

Cash dividends per share0.27

0.27

0.27

0.27

0.27

Book value per share (period-end)39.65

39.07

38.41

39.65

39.62

Tangible book value per share (period-end)28.79

28.11

27.38

28.56

28.63

Weighted average number of shares - diluted86,657

86,400

86,301

87,186

88,315

Period-end number of shares86,728

86,400

86,342

86,275

87,515

Market dataHigh sales price$

34.89

$

22.23

$

28.50

$

44.24

$

44.42

Low sales price18.59

17.42

14.88

14.32

35.45

Period-end closing price34.02

18.81

21.20

19.52

43.88

Trading volume27,564

32,139

48,174

50,390

30,850

PERFORMANCE RATIOSReturn on average assets1.25

%

0.97

%

(1.42

)%

(1.46

)%

1.20

%

Return on average common equity12.10

%

9.42

%

(13.59

)%

(12.72

)%

10.52

%

Return on average tangible common equity16.74

%

13.14

%

(18.75

)%

(17.51

)%

14.62

%

Tangible common equity ratio (c)7.64

%

7.53

%

7.33

%

8.00

%

8.45

%

Net interest margin (TE)3.22

%

3.23

%

3.23

%

3.41

%

3.43

%

Noninterest income as a percentage of total revenue (TE)25.44

%

26.00

%

23.47

%

26.45

%

25.94

%

Efficiency ratio (d)58.23

%

59.29

%

60.74

%

62.06

%

58.88

%

Average loan/deposit ratio81.60

%

83.72

%

85.97

%

87.28

%

88.22

%

Allowance for loan losses as a percent of period-end loans2.07

%

2.02

%

1.96

%

1.98

%

0.90

%

Allowance for credit losses as a percent of period-end loans (e)2.20

%

2.16

%

2.12

%

2.21

%

0.92

%

Annualized net charge-offs to average loans0.44

%

0.43

%

5.30

%

0.83

%

0.18

%

Allowance for loan losses to nonperforming loans + accruing loans 90 days past due305.20

%

234.89

%

222.37

%

139.17

%

60.97

%

FTE headcount3,986

4,058

4,196

4,148

4,136

(a) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.(b) Average securities does not include unrealized holding gains/losses on available for sale securities.(c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets.(d) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items.(e) The allowance for credit losses includes the allowance for loan and lease losses and the reserve for unfunded lending commitments. View source version on businesswire.com: https://www.businesswire.com/news/home/20210120005586/en/

CONTACT: Trisha Voltz Carlson, EVP, Investor Relations Manager 504.299.5208 or trisha.carlson@hancockwhitney.com