GlobeNewswire Inc | Jul 21, 2020 04:05PM EDT

July 21, 2020

GULFPORT, Miss., July 21, 2020 (GLOBE NEWSWIRE) -- Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the second quarter of 2020, a net loss of $117.1 million, or ($1.36) per diluted common share (EPS). The loss reflects a provision for credit losses of $306.9 million that includes both a special provision related to the sale of $497 million in energy loans and an additional build in the reserve for credit losses related to COVID-19.

The sale, which was announced on July 17, 2020, included reserve-based (RBL), midstream and nondrilling service credits. The company will receive proceeds of $257.5 million from the sale of these loans. All loans included in the transaction were re-classified as held for sale as of June 30, 2020, and todays earnings results include a special provision for credit losses of approximately $160 million (pre-tax), or $1.47 per diluted share (21% tax rate), related to the energy loan sale.

The second quarter total provision for credit losses includes an additional $146.8 million as the company continued to build reserves for expected losses in sectors hardest hit by the economic fallout related to COVID-19. The company remains well capitalized with regulatory ratios well in excess of required levels including capital conservation buffers; CET1 ratio is estimated to be 9.77% at June 30, 2020.

The company reported a loss of $111.0 million, or ($1.28) EPS, in the first quarter of 2020 and a profit of $88.3 million, or $1.01 EPS, in the second quarter of 2019. Pre-provision net revenue (PPNR) totaled $118.5 million in the second quarter of 2020, an increase of $2.8 million, or 2.4%, linked-quarter. Excluding the special provision related to the energy loan sale (at a tax rate of 21%), the companys earnings would be $9.4 million, or $.11 per diluted share, for the second quarter of 2020.

The second quarters results reflect our continued focus on de-risking our balance sheet in light of todays environment, said John M. Hairston, President and CEO. After building a solid reserve for credit losses in the first quarter, and then issuing subdebt in June, we made a strategic decision to opportunistically divest a large portion of our energy portfolio. Additionally, based on updated forecasts, we built a stronger level of reserves for what appears to be a longer and possibly deeper impact to our economies related to COVID-19. Despite those charges, our PPNR, the core business of our company, improved linked-quarter, and we remain committed to helping both our clients and associates manage through this event. Our capital remains solid with a 7.89% TCE ratio (excluding PPP loans), and we expect that our actions through the first half of 2020 will provide a stronger reserve with less risk in the balance sheet, which in turn should lead to improved returns for our shareholders.

Second Quarter 2020 Highlights

-- Criticized commercial loans down $182 million, or 34%, and nonperforming loans down $94 million, or 33%, linked-quarter reflecting the loan sale and disposition of problem energy credits -- Strengthened Allowance for Credit Losses (ACL)/Total Loans to 2.12% or 2.36% excluding PPP loans -- Net loan growth totaled $1.1 billion linked-quarter; includes $2.3 billion in PPP loans, partially offset by the energy loan sale and reduced balances on lines of credit -- Total deposits increased $2.3 billion, mainly reflecting customers additional liquidity from PPP loans -- NIM of 3.23% declined 18 basis points (bps) linked-quarter; (see slide 21 in earnings slides for details) -- Solid liquidity with over $17 billion available in additional sources of funding

Loans Total loans at June 30, 2020 were $22.6 billion, up $1.1 billion, or 5%, linked-quarter. Average loans totaled $23.0 billion for the second quarter of 2020, up $1.7 billion, or 8%, linked-quarter. Growth in the second quarter was related to $2.3 billion of PPP loans funded during the quarter, partly offset by approximately $500 million in paydowns of draws on lines taken in the first quarter of 2020 by businesses as a precaution related to the impact from COVID-19, and also reduced by $497 million related to the energy loan sale (of which $255 million in loans were reclassified as held for sale). As of June 30, 2020, loans to the energy industry totaled $352 million, or 1.7% of total loans.

Beginning last quarter, the company began offering loan deferrals to customers impacted by COVID-19. At March 31, 2020 there were 1,618 notes deferred totaling $839.4 million in outstandings. Deferrals peaked in May at $3.6 billion of outstandings. In late June, deferrals began expiring, and as of June 30, 2020 there were 6,954 notes deferred totaling $2.7 billion in outstandings. As of July 15, 2020 there were $1.4 billion of active loan deferrals.

DepositsTotal deposits at June 30, 2020 were $27.3 billion, up $2.3 billion, or 9%, from March 31, 2020. An increase of $2.6 billion in noninterest-bearing deposits (DDAs) was the largest driver of the increase and mainly reflects additional customer liquidity resulting from PPP loan fundings. DDAs totaled $11.8 billion at June 30, 2020, up 28% from March 31, 2020 and comprised 43% of total period-end deposits at June 30, 2020.

Interest-bearing transaction and savings deposits totaled $9.6 billion at the end of the second quarter of 2020, up $674.1 million, or 8%, linked-quarter. Compared to March 31, 2020, time deposits of $2.6 billion were down $989.3 million, or 27%, split between decreases in both retail and brokered CDs. Interest-bearing public fund deposits increased $74.6 million, or 2%, to $3.3 billion.

Average deposits for the second quarter of 2020 were $26.7 billion, up $2.4 billion, or 10%, linked-quarter.

Asset QualityThe total allowance for credit losses (ACL) was $479.2 million at June 30, 2020, up $4.2 million, or 1%, from March 31, 2020. During the second quarter of 2020, the company recorded a total provision for credit losses of $306.9 million, compared to $246.8 million in the first quarter of 2020. Approximately $146.8 million of the provision for credit losses reflects updated Moodys macroeconomic forecast scenarios that reflect todays ongoing COVID-19 recessionary environment. As noted above, $160.1 million of the total provision is related to the energy loan sale.

Net charge-offs totaled $302.7 million in the second quarter of 2020, or 5.30% of average total loans on an annualized basis, up from $43.8 million, or 0.83% of average total loans in the first quarter of 2020. Included in the second quarters total were $243 million of charge-offs related to the energy loan sale and $26 million in other energy-related charge-offs.

The ratio of ACL to period-end loans was 2.12% (2.36% excluding PPP loans) at June 30, 2020, compared to 2.21% at March 31, 2020. The allowance for credits in the remaining energy portfolio totaled $19.9 million, or 5.7% of funded energy loans, at June 30, 2020. The allowance for credits in the nonenergy portfolio totaled $459.3 million, or 2.30% of funded nonenergy loans (excluding PPP loans), at June 30, 2020.

Nonperforming assets (NPAs) totaled $212.6 million at June 30, 2020, down $94.2 million, or 31%, from March 31, 2020. During the second quarter of 2020, total nonperforming loans decreased $94 million, or 33% reflecting the energy loan sale, while foreclosed and surplus real estate (ORE) and other foreclosed assets remained virtually unchanged. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 0.94% at June 30, 2020, down 48 bps from March 31. 2020.

Net Interest Income and Net Interest Margin (NIM)Net interest income (TE) for the second quarter of 2020 was $241.1 million, up $6.5 million from the first quarter of 2020. The increase mainly reflects the impact of PPP loans offsetting the reduction in income from lower rates and purchase accounting accretion.

The net interest margin (TE) was 3.23% for the second quarter of 2020, down 18 bps linked-quarter. The decline mainly reflects a decrease in the overall rate environment impacting earning assets (-40 bps), the impact of excess liquidity on the balance sheet related to COVID-19 (-6 bps), a decrease in purchase accounting accretion related to the MidSouth transaction (-4 bps), the impact from interest reversals (-2 bps) and the one month impact of the June 2020 subdebt issuance (-1 bp), partly offset by proactive deposit pricing and changes in wholesale funding (+30 bps), and the impact of $1.7 billion in average PPP loans at a 4% yield (+5 bps).

Average earning assets were $30.0 billion for the second quarter of 2020, up $2.4 billion, or 9%, from the first quarter of 2020.

Noninterest IncomeNoninterest income totaled $73.9 for the second quarter of 2020, down $10.4 million, or 12%, from the first quarter of 2020 reflecting the slowdown in economic activity as a result of COVID-19. Additionally, the company began waiving certain fees in mid-late March, such as penalty-free CD withdrawals, MMDA and savings excessive withdrawal fees, overdraft protection transfer fees and checking account reopening fees. Depending on the duration of the impact of COVID-19 on our customers, reduced activity and fee waivers could continue impacting our results in future quarters.

Service charges on deposits totaled $15.5 million for the second quarter of 2020, down $7.3 million, or 32%, from the first quarter of 2020. Bank card and ATM fees totaled $16.0 million, down $1.4 million, or 8.1%, from the first quarter.

Trust fees totaled $14.2 million, down $0.6 million, or 4%, linked-quarter. Investment and annuity income and insurance fees totaled $5.4 million, down $1.8 million, or 25% linked-quarter.

Fees from secondary mortgage operations totaled $9.8 million for the second quarter of 2020, up $3.8 million, or 62% linked-quarter.

Other noninterest income totaled $13.1 million, down $3.0 million, or 19%, from the first quarter of 2020. The decrease in other noninterest income is primarily due to decreases in specialty income.

Noninterest Expense & TaxesNoninterest expense totaled $196.5 million, down $6.8 million, or 3% linked-quarter. Included in first quarter of 2020 expense was $9.8 million of energy-related equity write-offs. Adjusting for the write-offs, noninterest expense was up $3.0 million. The adjusted increase includes $2.5 million in corporate contributions via community support such as food pantry cash donations, PPE for residents and first responders, housing relief to help fight evictions and contributions to the companys employee assistance fund.

Total personnel expense was $120.4 million in the second quarter of 2020, up $6.9 million, or 6%, from the first quarter of 2020. The increase was mostly related to annual merit increases, and overtime pay related to mortgage lending and PPP applications.

Occupancy and equipment expense totaled $18.3 million in the second quarter of 2020, up $1.2 million, or 7%, from the first quarter of 2020. Amortization of intangibles totaled $5.2 million for the second quarter of 2020, down $0.2 million, or 3%, linked-quarter. Gains on sales of ORE and other foreclosed assets (OFA) exceeded expenses by $0.5 million in the second quarter of 2020. First quarter ORE expense included the $9.8 million in equity write-downs noted above.

Other operating expense totaled $53.1 million in the second quarter of 2020, down $4.1 million, or 7%, from the first quarter of 2020.

The effective income tax rate for the second quarter of 2020 was 39%. The unusually higher rate reflects both the impact from the energy loan sale and resulting quarterly loss. The company expects the tax rate to approximate 18% in both the third and fourth quarters of 2020. 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 June 30, 2020 totaled $3.3 billion, down $104.9 million, or 3%, from March 31, 2020. The decline reflects the net impact of the energy loan sale. The tangible common equity (TCE) ratio was 7.33%, down from 8.00% March 31, 2020. TCE was mainly impacted by the addition of $2.3 billion in PPP loans (-56 bps) and the energy loan sale (-36 bps) in the quarter. 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. In early June, the company issued $172.5 million of new subdebt which qualifies as tier 2 capital. The companys CET1 ratio is estimated to be 9.77% at June 30, 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 Tuesday, July 21, 2020 to review the results. A live listen-only webcast of the call will be available under the Investor Relations section of Hancock Whitneys website at www.hancockwhitney.com/investors. A link to the release with additional financial tables, and a link to a slide presentation related to second quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial (877) 564-1219 or (973) 638-3429. 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 July 28, 2020 by dialing (855) 859-2056 or (404) 537-3406, passcode 1757957.

About Hancock Whitney Since 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, as well as trust and asset management offices in New Jersey and New York. BauerFinancial, Inc., the nations leading independent bank rating and analysis firm, consistently recommends Hancock Whitney as one of Americas most financially sound banks. More information is available at www.hancockwhitney.com.

Non-GAAP Financial Measures This news release includes non-GAAP financial measures to describe Hancock Whitneys 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 companys 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 companys 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, managements predictions about charge-offs for loans, including energy-related credits, the impact of significant decreases in oil and gas prices on our energy portfolio, the impact of COVID-19 on the economy and our operations, the adequacy of our enterprise risk management framework, the impact of the MidSouth acquisition, or 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, the impact of the referenced rate reform, deposit trends, credit quality trends, 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 COVID-19 are unsuccessful and restrictions on movement last into the third quarter or beyond, the recession would be much longer and much more severe. Ineffective fiscal stimulus, or an extended delay in implementing it, are also major downside risks. The deeper the recession is, and the longer it lasts, the more it will damage consumer fundamentals and sentiment. This could both prolong the recession, and/or make any recovery weaker. 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 March 31, 2020 and in other periodic reports that we file with the SEC.

HANCOCK WHITNEY CORPORATIONFINANCIAL HIGHLIGHTS(Unaudited) Three Months Ended Six Months Ended(dollars and commonshare data in 6/30/2020 3/31/2020 6/30/2019 6/30/2020 6/30/2019thousands, exceptper share amounts)NET INCOME Net interest income $ 237,866 $ 231,188 $ 219,868 $ 469,054 $ 439,122 Net interest income 241,114 234,636 223,586 475,750 446,664 (TE) (a)Provision for 306,898 246,793 8,088 553,691 26,131 credit lossesNoninterest income 73,943 84,387 79,250 158,330 149,753 Noninterest expense 196,539 203,335 183,567 399,874 359,267 Income tax expense (74,556 ) (23,520 ) 19,186 (98,076 ) 36,036 (benefit)Net income (loss) $ (117,072 ) $ (111,033 ) $ 88,277 $ (228,105 ) $ 167,441 For informationalpurposes - included above, pre-taxProvision forcredit loss $ 160,101 $ ? $ ? $ 160,101 $ ? associated withenergy loan salePERIOD-END BALANCE SHEET DATALoans $ 22,628,377 $ 21,515,681 $ 20,175,812 $ 22,628,377 $ 20,175,812 Securities 6,381,803 6,374,490 5,725,735 6,381,803 5,725,735 Earning assets 30,134,790 28,834,072 26,088,759 30,134,790 26,088,759 Total assets 33,215,400 31,761,693 28,761,863 33,215,400 28,761,863 Noninterest-bearing 11,759,085 9,204,631 8,114,632 11,759,085 8,114,632 depositsTotal deposits 27,322,268 25,008,496 23,236,042 27,322,268 23,236,042 Commonstockholders' 3,316,157 3,421,064 3,318,915 3,316,157 3,318,915 equityAVERAGE BALANCE SHEET DATALoans $ 22,957,032 $ 21,234,016 $ 20,150,104 $ 22,095,524 $ 20,138,590 Securities (b) 6,129,616 6,149,432 5,586,390 6,139,524 5,621,345 Earning assets 30,013,829 27,630,652 25,992,894 28,822,240 26,006,595 Total assets 33,136,706 30,663,601 28,537,810 31,900,154 28,494,917 Noninterest-bearing 10,989,921 8,763,359 8,099,621 9,876,640 8,163,306 depositsTotal deposits 26,702,622 24,327,242 23,137,563 25,514,932 23,125,916 Commonstockholders' 3,465,617 3,509,727 3,230,503 3,487,672 3,174,588 equityCOMMON SHARE DATA Earnings (loss) per $ (1.36 ) $ (1.28 ) $ 1.01 $ (2.64 ) $ 1.92 share - dilutedCash dividends per 0.27 0.27 0.27 0.54 0.54 shareBook value per 38.41 39.65 38.70 38.41 38.70 share (period-end)Tangible book valueper share 27.38 28.56 28.46 27.38 28.46 (period-end)Weighted averagenumber of shares - 86,301 87,186 85,835 86,744 85,810 dilutedPeriod-end number 86,342 86,275 85,759 86,342 85,759 of sharesMarket data High sales price $ 28.50 $ 44.24 $ 44.74 $ 44.24 $ 44.74 Low sales price 14.88 14.32 37.03 14.32 34.11 Period-end closing 21.20 19.52 40.06 21.20 40.06 priceTrading volume 48,174 50,390 27,874 98,564 55,998 PERFORMANCE RATIOS Return on average (1.42 ) (1.46 ) 1.24 % (1.44 ) 1.18 %assets % % %Return on average (13.59 ) (12.72 ) 10.96 % (13.15 ) 10.64 %common equity % % %Return on average ) ) )tangible common (18.75 % (17.51 % 15.07 % (18.13 % 14.73 %equityTangible common 7.33 % 8.00 % 8.75 % 7.33 % 8.75 %equity ratio (c)Net interest margin 3.23 % 3.41 % 3.45 % 3.31 % 3.45 %(TE)Noninterest incomeas a percent of 23.47 % 26.45 % 26.17 % 24.97 % 25.11 %total revenue (TE)Efficiency ratio 60.74 % 62.06 % 58.95 % 61.41 % 58.53 %(d)Average loan/ 85.97 % 87.28 % 87.09 % 86.60 % 87.08 %deposit ratioAllowance for loanlosses as a 1.96 % 1.98 % 0.97 % 1.96 % 0.97 %percentage ofperiod-end loansAllowance forcredit losses as a 2.12 % 2.21 % 0.97 % 2.12 % 0.97 %percent ofperiod-end loansAnnualized netcharge-offs to 5.30 % 0.83 % 0.14 % 3.15 % 0.25 %average loansAllowance for loanlosses tononperforming loans 222.37 % 139.17 % 61.60 % 222.37 % 61.60 %+ accruing loans 90days past dueFTE headcount 4,196 4,148 3,930 4,196 3,930 (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.

HANCOCK WHITNEY CORPORATIONQUARTERLY FINANCIAL HIGHLIGHTS(Unaudited) Three Months Ended(dollars and commonshare data in 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019thousands, except pershare amounts)NET INCOME Net interest income $ 237,866 $ 231,188 $ 233,156 $ 222,939 $ 219,868 Net interest income 241,114 234,636 236,736 226,591 223,586 (TE) (a)Provision for credit 306,898 246,793 9,156 12,421 8,088 lossesNoninterest income 73,943 84,387 82,924 83,230 79,250 Noninterest expense 196,539 203,335 197,856 213,554 183,567 Income tax expense (74,556 ) (23,520 ) 16,936 12,387 19,186 (benefit)Net income (loss) $ (117,072 ) $ (111,033 ) $ 92,132 $ 67,807 $ 88,277 For informationalpurposes - included above, pre-taxProvision for creditloss associated with $ 160,101 $ ? $ ? $ ? $ ? energy loan saleNonoperatingmerger-related ? ? 3,856 28,810 ? expensesPERIOD-END BALANCE SHEET DATALoans $ 22,628,377 $ 21,515,681 $ 21,212,755 $ 21,035,952 $ 20,175,812 Securities 6,381,803 6,374,490 6,243,313 6,404,719 5,725,735 Earning assets 30,134,790 28,834,072 27,622,161 27,565,973 26,088,759 Total assets 33,215,400 31,761,693 30,600,757 30,543,549 28,761,863 Noninterest-bearing 11,759,085 9,204,631 8,775,632 8,686,383 8,114,632 depositsTotal deposits 27,322,268 25,008,496 23,803,575 24,201,299 23,236,042 Common stockholders' 3,316,157 3,421,064 3,467,685 3,586,380 3,318,915 equityAVERAGE BALANCE SHEET DATALoans $ 22,957,032 $ 21,234,016 $ 21,037,942 $ 20,197,114 $ 20,150,104 Securities (b) 6,129,616 6,149,432 6,201,612 6,004,688 5,586,390 Earning assets 30,013,829 27,630,652 27,441,459 26,437,613 25,992,894 Total assets 33,136,706 30,663,601 30,343,293 29,148,106 28,537,810 Noninterest-bearing 10,989,921 8,763,359 8,601,323 8,092,482 8,099,621 depositsTotal deposits 26,702,622 24,327,242 23,848,374 23,091,355 23,137,563 Common stockholders' 3,465,617 3,509,727 3,473,693 3,383,738 3,230,503 equityCOMMON SHARE DATA Earnings (loss) per $ (1.36 ) $ (1.28 ) $ 1.03 $ 0.77 $ 1.01 share - dilutedCash dividends per 0.27 0.27 0.27 0.27 0.27 shareBook value per share 38.41 39.65 39.62 39.49 38.70 (period-end)Tangible book value 27.38 28.56 28.63 28.73 28.46 per share (period-end)Weighted averagenumber of shares - 86,301 87,186 88,315 86,462 85,835 dilutedPeriod-end number of 86,342 86,275 87,515 90,822 85,759 sharesMarket data High sales price $ 28.50 $ 44.24 $ 44.42 $ 42.11 $ 44.74 Low sales price 14.88 14.32 35.45 33.63 37.03 Period-end closing 21.20 19.52 43.88 38.30 40.06 priceTrading volume 48,174 50,390 30,850 29,038 27,874 PERFORMANCE RATIOS Return on average (1.42 ) (1.46 ) 1.20 % 0.92 % 1.24 %assets % %Return on average (13.59 ) (12.72 ) 10.52 % 7.95 % 10.96 %common equity % %Return on average (18.75 ) (17.51 ) 14.62 % 10.77 % 15.07 %tangible common equity % %Tangible common equity 7.33 % 8.00 % 8.45 % 8.82 % 8.75 %ratio (c)Net interest margin 3.23 % 3.41 % 3.43 % 3.41 % 3.45 %(TE)Noninterest income asa percentage of total 23.47 % 26.45 % 25.94 % 26.86 % 26.17 %revenue (TE)Efficiency ratio (d) 60.74 % 62.06 % 58.88 % 58.05 % 58.95 %Average loan/deposit 85.97 % 87.28 % 88.22 % 87.47 % 87.09 %ratioAllowance for loanlosses as a percent of 1.96 % 1.98 % 0.90 % 0.93 % 0.97 %period-end loansAllowance for creditlosses as a percent of 2.12 % 2.21 % 0.92 % 0.93 % 0.97 %period-end loansAnnualized netcharge-offs to average 5.30 % 0.83 % 0.18 % 0.25 % 0.14 %loansAllowance for loanlosses tononperforming loans + 222.37 % 139.17 % 60.97 % 67.06 % 61.60 %accruing loans 90 dayspast dueFTE headcount 4,196 4,148 4,136 3,894 3,930 (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.

For more informationTrisha Voltz Carlson, EVP, Investor Relations Manager504.299.5208 or trisha.carlson@hancockwhitney.com