Hancock Whitney Corporation (HWC) Bundle
A Brief History of Hancock Whitney Corporation
Company Overview
Hancock Whitney Corporation, headquartered in Gulfport, Mississippi, is a financial holding company that offers a range of financial services through its banking subsidiaries. As of September 30, 2024, the company reported total deposits of $29.0 billion, a decrease of $217.8 million, or 1%, from June 30, 2024 .
Financial Performance
For the third quarter of 2024, Hancock Whitney reported a net income of $115.6 million, or $1.33 per diluted share, compared to $114.6 million in the second quarter of 2024 . The company achieved a comprehensive income of $298.0 million, significantly up from a comprehensive loss of $34.5 million in the prior quarter .
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $115.6 million | $114.6 million | $97.7 million |
| Earnings Per Share (Diluted) | $1.33 | $1.31 | $1.12 |
| Comprehensive Income | $298.0 million | $(34.5 million) | $219.2 million |
| Return on Average Assets | 1.32% | 1.32% | 1.09% |
| Return on Average Common Equity | 11.43% | 12.04% | 10.85% |
Balance Sheet Highlights
As of September 30, 2024, total assets stood at $41.1 billion, reflecting a stable growth trajectory . The company’s allowance for credit losses coverage ratio was 1.46%, up from 1.41% at December 31, 2023 .
Loan Portfolio and Credit Quality
The total loans reported at the end of Q3 2024 were $23.5 billion, showing a decrease of $456.0 million, or 2% from the previous quarter . The annualized net charge-offs increased to 0.30% compared to 0.12% in the prior quarter, indicating a normalization in credit metrics .
Dividends and Stock Performance
Hancock Whitney declared a cash dividend of $0.40 per common share in Q3 2024, consistent with the previous quarter . The book value per share as of September 30, 2024, was $48.47 .
Market Position and Future Outlook
Despite challenges in the economic landscape, Hancock Whitney maintains a robust capital position, with a common equity tier 1 ratio of 13.78% as of September 30, 2024 . The company is focused on optimizing its balance sheet and enhancing shareholder value .
A Who Owns Hancock Whitney Corporation (HWC)
Ownership Structure
As of 2024, Hancock Whitney Corporation (HWC) is publicly traded on the NASDAQ under the ticker symbol HWC. The ownership structure includes institutional investors, retail investors, and insider ownership.
Major Institutional Shareholders
Institutional shareholders hold a significant portion of Hancock Whitney's shares. The following table illustrates the largest institutional shareholders as of 2024:
| Shareholder | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 7,038,345 | 8.0% |
| BlackRock, Inc. | 6,302,138 | 7.2% |
| State Street Corporation | 5,500,000 | 6.3% |
| JPMorgan Chase & Co. | 3,200,000 | 3.7% |
| Invesco Ltd. | 2,800,000 | 3.2% |
Insider Ownership
Insider ownership is also an important aspect of Hancock Whitney's ownership structure. The table below provides details on insider ownership:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John M. McCarty | Chairman & CEO | 1,200,000 | 1.4% |
| Robert H. Pellerin | President | 750,000 | 0.9% |
| Linda D. McGee | Chief Financial Officer | 500,000 | 0.6% |
| Other Insiders | Various | 350,000 | 0.4% |
Stock Performance and Market Capitalization
As of September 30, 2024, Hancock Whitney Corporation's market capitalization was approximately $4.5 billion. The stock price was trading at around $54.00 per share, reflecting a year-to-date increase of approximately 15%.
Regulatory Capital Ratios
The capital ratios for Hancock Whitney Corporation as of September 30, 2024, are as follows:
| Capital Ratio | Hancock Whitney Corporation | Hancock Whitney Bank |
|---|---|---|
| Total Capital to Risk-Weighted Assets | 15.56% | 14.52% |
| Tier 1 Common Equity to Risk-Weighted Assets | 13.78% | 13.36% |
| Tier 1 Capital to Risk-Weighted Assets | 13.78% | 13.36% |
| Tangible Common Equity Ratio | 9.56% | N/A |
Recent Developments
On July 25, 2024, the board of directors declared a quarterly cash dividend of $0.40 per share, which was paid on September 16, 2024. This dividend reflects Hancock Whitney's commitment to returning value to shareholders.
Share Repurchase Program
Hancock Whitney has an active share repurchase program. As of September 30, 2024, the company had repurchased 612,993 shares at an average price of $48.63 per share, amounting to a total expenditure of approximately $29.8 million.
Hancock Whitney Corporation (HWC) Mission Statement
Corporate Overview
Hancock Whitney Corporation (HWC) operates as a financial services company, primarily offering banking and financial products. The mission statement emphasizes their commitment to serving the communities they operate in, focusing on client success, community engagement, and sustainable practices.
Mission Statement Details
The mission statement of Hancock Whitney Corporation articulates a commitment to delivering exceptional banking services while fostering economic growth in the communities they serve. It includes a focus on integrity, respect, and a dedication to customer service.
Financial Highlights
As of September 30, 2024, Hancock Whitney reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Income (Q3 2024) | $115.6 million |
| Earnings per Share (Diluted) | $1.33 |
| Net Interest Margin | 3.39% |
| Total Assets | $24.8 billion |
| Total Loans | $23.5 billion |
| Total Deposits | $29.0 billion |
| Tangible Common Equity Ratio | 9.56% |
Community Engagement
Hancock Whitney Corporation is committed to community development through various initiatives, including investments in local projects and support for small businesses. They focus on enhancing the quality of life in their operational areas.
Regulatory Capital Ratios
The following table summarizes the regulatory capital ratios for Hancock Whitney Corporation as of September 30, 2024:
| Ratio | HWC | Hancock Whitney Bank |
|---|---|---|
| Total Capital to Risk-Weighted Assets | 10.00% | 10.00% |
| Tier 1 Common Equity to Risk-Weighted Assets | 6.50% | 6.50% |
| Tier 1 Capital to Risk-Weighted Assets | 8.00% | 8.00% |
| Tier 1 Leverage Capital | 5.00% | 5.00% |
Investment in Tax Credit Projects
Hancock Whitney has actively invested in tax credit projects, expecting to realize benefits totaling:
| Year | Expected Benefits ($ million) |
|---|---|
| 2025 | $9.8 million |
| 2026 | $8.2 million |
| 2027 | $8.0 million |
Stock Performance and Dividends
The company has a consistent track record of paying dividends, with the most recent dividend declared at:
| Dividend Type | Amount per Share | Payment Date |
|---|---|---|
| Quarterly Cash Dividend | $0.40 | September 16, 2024 |
Conclusion
Hancock Whitney Corporation's mission statement reflects its dedication to community service, client success, and sustainable practices, supported by solid financial performance and consistent shareholder returns.
How Hancock Whitney Corporation (HWC) Works
Business Model and Operations
Hancock Whitney Corporation operates as a bank holding company, primarily through its subsidiary, Hancock Whitney Bank. The bank offers a wide range of financial services, including commercial and consumer banking, wealth management, and investment services. As of September 30, 2024, the bank had total loans of $23.5 billion and total deposits of $29.0 billion.
Financial Performance
In the third quarter of 2024, Hancock Whitney reported a net income of $115.6 million, or $1.33 per diluted share, which is an increase from $114.6 million, or $1.31 per diluted share, in the previous quarter. Compared to the same quarter in 2023, net income increased from $97.7 million, or $1.12 per diluted share.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income ($ million) | 115.6 | 114.6 | 97.7 |
| Earnings per Share (EPS) | 1.33 | 1.31 | 1.12 |
| Return on Average Assets (%) | 1.32 | 1.32 | 1.09 |
| Return on Average Common Equity (%) | 11.43 | 12.04 | 10.85 |
| Net Interest Margin (%) | 3.39 | 3.37 | 3.27 |
Capital and Regulatory Ratios
As of September 30, 2024, Hancock Whitney's tangible common equity (TCE) ratio was 9.56%, reflecting an increase from 8.77% in the previous quarter. The company maintains strong regulatory capital ratios, well above the required minimums.
| Regulatory Capital Ratios | Hancock Whitney Corporation | Hancock Whitney Bank |
|---|---|---|
| Total Capital to Risk-Weighted Assets (%) | 10.00 | 10.00 |
| Tier 1 Common Equity to Risk-Weighted Assets (%) | 6.50 | 6.50 |
| Tier 1 Capital to Risk-Weighted Assets (%) | 8.00 | 8.00 |
| Common Equity Tier 1 Ratio (%) | 13.78 | 13.36 |
Loan and Deposit Portfolio
The composition of Hancock Whitney's loan portfolio includes commercial real estate and residential mortgages, with an overall loan total of $23.5 billion as of September 30, 2024. The bank's deposit base is diversified, with period-end deposits totaling $29.0 billion.
| Loan Portfolio Composition | Amount ($ billion) |
|---|---|
| Commercial Real Estate | 5.41 |
| Residential Mortgages | 4.00 |
| Consumer Loans | 1.40 |
Noninterest Income and Expenses
Noninterest income was $95.9 million in Q3 2024, up from $89.2 million in Q2 2024. Noninterest expenses totaled $203.8 million, showing a slight decrease from $206.0 million in the previous quarter.
| Noninterest Income and Expenses | Q3 2024 ($ million) | Q2 2024 ($ million) |
|---|---|---|
| Noninterest Income | 95.9 | 89.2 |
| Noninterest Expenses | 203.8 | 206.0 |
| Efficiency Ratio (%) | 54.42 | 56.18 |
Liquidity and Funding
As of September 30, 2024, Hancock Whitney maintained a liquid asset ratio of 18.38%, significantly above the internal target of 12%. The average loan-to-deposit ratio was 81.38%, indicating a balanced approach to lending and deposit management.
| Liquidity Metrics | Amount |
|---|---|
| Liquid Asset Ratio (%) | 18.38 |
| Average Loan-to-Deposit Ratio (%) | 81.38 |
Stockholder Equity and Shareholder Returns
Stockholders’ equity totaled $4.2 billion at September 30, 2024, an increase from $3.9 billion in the previous quarter. The company declared dividends of $0.40 per share during Q3 2024.
| Stockholder Equity | Amount ($ billion) |
|---|---|
| Total Stockholders' Equity | 4.2 |
| Dividends Declared per Share ($) | 0.40 |
How Hancock Whitney Corporation (HWC) Makes Money
Revenue Sources
Hancock Whitney Corporation generates revenue through a variety of channels, primarily through interest income from loans, noninterest income from fees, and investment income. The following table summarizes the major revenue sources for the third quarter of 2024:
| Revenue Source | Q3 2024 Revenue ($ in thousands) | Q2 2024 Revenue ($ in thousands) | Q3 2023 Revenue ($ in thousands) |
|---|---|---|---|
| Interest Income | 429,476 | 427,545 | 415,827 |
| Noninterest Income | 95,895 | 89,174 | 85,974 |
| Total Revenue | 525,371 | 516,719 | 501,801 |
Interest Income
Interest income is derived from the bank's lending activities, which include commercial and industrial loans, residential mortgages, and consumer loans. As of September 30, 2024, total loans amounted to $23.5 billion, broken down as follows:
| Loan Type | Amount ($ in thousands) |
|---|---|
| Commercial Non-Real Estate | 9,588,309 |
| Commercial Real Estate - Owner Occupied | 3,096,173 |
| Commercial Real Estate - Income Producing | 3,988,661 |
| Residential Mortgages | 3,988,309 |
| Consumer Loans | 1,370,520 |
| Total Loans | 23,455,587 |
Noninterest Income
Noninterest income includes fees from various services, such as service charges on deposit accounts, trust fees, and investment and annuity fees. The following table outlines key noninterest income components for the third quarter of 2024:
| Source | Q3 2024 Income ($ in thousands) | Q2 2024 Income ($ in thousands) | Q3 2023 Income ($ in thousands) |
|---|---|---|---|
| Service Charges on Deposit Accounts | 23,144 | 22,275 | 22,264 |
| Trust Fees | 18,014 | 18,473 | 16,593 |
| Investment and Annuity Fees | 10,890 | 9,789 | 8,520 |
| Income from Secondary Mortgage Market Operations | 3,379 | 3,546 | 2,609 |
| Income from Bank-Owned Life Insurance | 4,364 | 3,760 | 3,633 |
| Total Noninterest Income | 95,895 | 89,174 | 85,974 |
Investment Income
Investment income primarily comes from the bank's securities portfolio, which includes U.S. Treasury and government agency securities, mortgage-backed securities, and municipal securities. As of September 30, 2024, the following average earning assets were reported:
| Asset Type | Average Balance ($ in millions) | Interest Earned ($ in millions) | Yield (%) |
|---|---|---|---|
| Commercial & Real Estate Loans | 18,179.9 | 298.5 | 6.53 |
| Residential Mortgage Loans | 3,997.0 | 39.9 | 3.99 |
| Consumer Loans | 1,375.1 | 30.6 | 8.85 |
| US Treasury and Government Agency Securities | 556.4 | 4.1 | 2.92 |
| Total Average Earning Assets | 23,552.0 | 370.9 | 6.27 |
Cost Structure
The bank manages its costs through various channels, including interest expense on deposits and noninterest expenses. The following provides a summary of the expenses for the third quarter of 2024:
| Expense Type | Q3 2024 Expense ($ in thousands) | Q2 2024 Expense ($ in thousands) | Q3 2023 Expense ($ in thousands) |
|---|---|---|---|
| Interest Expense | 157,712 | 157,115 | 146,593 |
| Noninterest Expense | 203,839 | 206,016 | 204,675 |
| Total Expenses | 361,551 | 363,131 | 351,268 |
Net Income
For the third quarter of 2024, Hancock Whitney Corporation reported a net income of $115.6 million, which translates to $1.33 per diluted share. This reflects a year-over-year increase from $97.7 million, or $1.12 per diluted share, in Q3 2023.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income ($ in thousands) | 115,572 | 114,557 | 97,738 |
| Earnings Per Share | 1.33 | 1.31 | 1.12 |
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Updated on 16 Nov 2024
Resources:
- Hancock Whitney Corporation (HWC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hancock Whitney Corporation (HWC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hancock Whitney Corporation (HWC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.