Hancock Whitney (HWC) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $115.6 million ($1.33 per diluted share), up from $114.6 million ($1.31) in Q2 2024 and $97.7 million ($1.12) in Q3 2023.

• Pre-provision net revenue rose to $166.5 million, up 6% sequentially; efficiency ratio improved to 54.42%.

• Return on average assets was 1.32%, and return on average common equity was 11.43% for the quarter.

• Profitability improved with NIM expansion, fee income growth, and lower operating expenses.

• Capital ratios strengthened, with CET1 at 13.79% and tangible common equity at 9.56%.

Financial highlights

• Net interest income (taxable equivalent) for Q3 2024 was $274.5 million, up $1.2 million sequentially; NIM expanded to 3.39%.

• Noninterest income increased 8% sequentially to $95.9 million, driven by higher service charges, investment/annuity, and specialty income.

• Noninterest expense declined 1% to $203.8 million, with personnel expense down 2% due to lower headcount and higher loan fee deferrals.

• Efficiency ratio improved to 54.42%, down 176 bps from Q2 2024.

• Provision for credit losses increased to $18.6 million from $8.7 million in Q2 2024; net charge-offs were $18.0 million, or 0.30% of average loans.

Outlook and guidance

• Modest NIM expansion is expected in Q4 2024, assuming two 25 bp Fed rate cuts.

• Noninterest income for 2024 is projected to be up 6%-7% from 2023's adjusted level; noninterest expense up 1%-2% year over year.

• PPNR is guided to be flat to down slightly from 2023's adjusted levels.

• Year-end 2024 loan and deposit balances anticipated to be flat or slightly down from year-end 2023.

• Full guidance for 2025 will be provided next quarter.