Hancock Whitney Corporation Shines in Q3 2024: Strong Profitability, Efficient Operations, and Robust Capital Metrics

Hancock Whitney Corporation, a leading financial institution, has reported impressive results for its third quarter of 2024. The company's President and CEO, John Hairston, highlighted the key highlights from the quarter during a recent conference call.

According to Hairston, Hancock Whitney achieved an ROA (Return on Assets) of 1.32% and continued to expand its Net Interest Margin (NIM), resulting in higher fee income growth and lower operating expenses. These factors contributed to strong earnings, which facilitated continued growth in capital ratios, now among the top quartile peers.

The company's net interest income was up this quarter due to higher yields on loans and securities, as well as a flat cost of funds. Fee income continues to outperform, and expenses remained well-controlled, with a notable decrease from the previous quarter. Hancock Whitney has made strategic investments in fee-income lines of business, which have yielded impressive returns.

Turning to the balance sheet, loans were down $450 million this quarter, with over $250 million attributed to a purposeful decrease in SNC (Sovereign Nation/Country) exposure. The company also experienced higher payoffs due to refinance and sales transactions within its CRE (Commercial Real Estate) multifamily and CRE industrial portfolio across the footprint.

However, Hancock Whitney enjoyed solid production in new credits during the quarter, indicating that the balance sheet still has room for growth. The company is actively recruiting bankers to support growing the balance sheet next year, now that they have reached their goals in earnings efficiency and capital.

Deposits were down this quarter, but the DDA (Demand Deposit Account) outflow remains moderated, with a consistent DDA mix of around 36%. Public funds deposits experienced normal seasonal runoff, while interest-bearing transaction accounts and time deposits showed growth despite a reduction in promotional rates during the quarter.

Hancock Whitney's credit quality metrics continue to normalize, with a decrease in nonaccrual loans but an increase in criticized loans. The company expects to compare well versus peers in criticized loans and be among the top quartile for nonaccrual loans. Net charge-offs were up this quarter, but Hancock Whitney continues to see no significant weakening in any specific portfolio sectors or geography.

The company maintained its posture of returning capital to investors by repurchasing over 300,000 shares of common stock in the quarter. Despite this return of capital, Hancock Whitney had strong growth in all its capital metrics, ending the quarter with a TCE (Tangible Common Equity) ratio of 9.56% and a common equity Tier 1 ratio of 13.

Overall, Hancock Whitney Corporation's Q3 2024 results demonstrate its continued commitment to efficiency, profitability, and capital metrics. The company's strategic investments in fee-income lines of business have yielded impressive returns, while its focus on returning capital to investors has resulted in robust capital metrics.