Hancock Whitney Corporation (HWC): Business Model Canvas [11-2024 Updated]
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Hancock Whitney Corporation (HWC) Bundle
Understanding the business model of Hancock Whitney Corporation (HWC) reveals how this financial institution successfully navigates the competitive landscape of banking. With a focus on personalized banking solutions and a commitment to community development, HWC leverages key partnerships and resources to deliver value to a diverse customer base. Explore the essential components of HWC’s business model canvas, from their customer relationships to revenue streams, and discover what sets them apart in the industry.
Hancock Whitney Corporation (HWC) - Business Model: Key Partnerships
Collaboration with local businesses
Hancock Whitney Corporation actively partners with local businesses to enhance its community engagement and service offerings. As of September 30, 2024, the bank reported a total of $23.5 billion in loans, with a significant portion allocated to small and middle-market enterprises. This collaboration supports local economic development and fosters a strong customer base.
Relationships with regulatory authorities
Hancock Whitney maintains strong relationships with regulatory authorities to ensure compliance and operational integrity. As of the latest reports, the bank's capital ratios exceeded regulatory minimums by at least $1.1 billion, categorizing it as "well-capitalized." The tangible common equity ratio was 9.56% at September 30, 2024. This solid standing reflects effective collaboration with regulators, enhancing trust and stability in operations.
Partnerships with fintech companies
The bank has engaged in partnerships with several fintech firms to innovate its service delivery. These collaborations focus on improving digital banking capabilities, enhancing customer experience, and streamlining operations. Investments in technology are critical, especially as the bank reported $1.7 billion in wholesale funds as of September 30, 2024, a decrease of 15% from the previous year. This shift indicates a strategic pivot towards more sustainable funding sources through digital innovations.
Alliances with insurance providers
Hancock Whitney has established alliances with various insurance providers to offer comprehensive financial solutions. By integrating insurance products into its service offerings, the bank enhances its value proposition to customers. The bank's total stockholders' equity reached $4.2 billion as of September 30, 2024, reflecting the strength of these partnerships in contributing to overall financial health.
| Partnership Type | Key Metrics |
|---|---|
| Local Businesses | $23.5 billion in loans |
| Regulatory Authorities | Capital ratios exceed minimums by at least $1.1 billion |
| Fintech Companies | $1.7 billion in wholesale funds |
| Insurance Providers | $4.2 billion in total stockholders' equity |
Hancock Whitney Corporation (HWC) - Business Model: Key Activities
Providing banking and financial services
Hancock Whitney Corporation (HWC) offers a comprehensive range of banking and financial services, including commercial banking, consumer banking, and wealth management. As of September 30, 2024, the total loans outstanding amounted to $23.5 billion, a decrease of $456 million or 2% from the previous quarter. The composition of the loan portfolio includes:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial non-real estate | $9,588,309 |
| Commercial real estate - owner occupied | $3,096,173 |
| Residential mortgages | $3,988,309 |
| Consumer loans | $1,370,520 |
| Total Loans | $23,455,587 |
In terms of revenue, HWC reported total noninterest income of $95.9 million for the third quarter of 2024, which reflects a growth driven by increased service charges and trust fees.
Risk management and compliance
Risk management is a critical activity for HWC, particularly in light of the evolving economic landscape and regulatory requirements. The allowance for credit losses stood at $342.8 million, representing 1.46% of total loans. HWC has reported criticized commercial loans totaling $508 million as of September 30, 2024, marking a year-over-year increase of 86%. The company is categorized as 'well-capitalized' by regulators, maintaining capital ratios well above minimum requirements.
Customer service and support
HWC places a strong emphasis on customer service and support, which is reflected in its diverse service offerings and customer engagement strategies. For the third quarter of 2024, service charges on deposit accounts totaled $23.1 million, a 4% increase from the previous quarter. The bank has also focused on enhancing its digital banking platforms, contributing to a more streamlined customer experience.
Marketing and community engagement
Marketing and community engagement are vital components of HWC's strategy to build brand loyalty and expand its customer base. The company actively participates in community outreach programs and focuses on localized marketing strategies to enhance its presence in key markets. In 2024, HWC plans to allocate a significant portion of its budget towards marketing initiatives aimed at promoting its financial services and community involvement.
Hancock Whitney Corporation (HWC) - Business Model: Key Resources
Experienced workforce
The workforce at Hancock Whitney Corporation is composed of approximately 3,000 employees, with a significant portion holding advanced degrees and specialized certifications in finance and banking. The company emphasizes ongoing training and professional development, aiming to enhance employee skills in customer service and financial advisory roles.
Strong capital base
As of September 30, 2024, Hancock Whitney Corporation reported total stockholders’ equity of $4.2 billion, reflecting an increase of $254.0 million, or 6%, from the previous quarter. The tangible common equity (TCE) ratio was 9.56%, up 79 basis points from the prior quarter. The company also maintained a common equity tier 1 ratio of 13.78%.
Advanced technology infrastructure
Hancock Whitney has invested significantly in its technology infrastructure, focusing on enhancing digital banking services. The bank's digital platform supports over 1 million active users and includes mobile banking applications that facilitate transactions and account management. Investments in cybersecurity have also been prioritized, with expenditures exceeding $5 million annually to safeguard customer data.
Extensive branch network
The company operates an extensive branch network comprising 200 branches across several states, including Mississippi, Louisiana, Alabama, Florida, and Texas. This network is strategically positioned to serve both urban and rural markets. The branches are complemented by a robust ATM network, which includes over 300 ATMs.
| Key Resource | Details | Quantitative Data |
|---|---|---|
| Experienced Workforce | Number of Employees | 3,000 |
| Strong Capital Base | Total Stockholders’ Equity | $4.2 billion |
| Strong Capital Base | Tangible Common Equity Ratio | 9.56% |
| Advanced Technology Infrastructure | Annual Cybersecurity Investment | $5 million |
| Extensive Branch Network | Number of Branches | 200 |
| Extensive Branch Network | Number of ATMs | 300 |
Hancock Whitney Corporation (HWC) - Business Model: Value Propositions
Personalized banking solutions
Hancock Whitney Corporation offers tailored banking solutions that cater to the diverse needs of its customers. This includes a wide range of financial products and services designed for individuals and businesses alike. For example, the bank provides personalized wealth management and financial planning services, enabling clients to achieve their financial goals. As of September 30, 2024, the bank reported total loans of $23.5 billion, reflecting its commitment to serving its customer base effectively.
Competitive interest rates on loans
The corporation emphasizes competitive interest rates across its loan offerings, which include commercial, residential, and consumer loans. As of September 30, 2024, the net interest margin stood at 3.39%, indicating a strong performance in loan pricing relative to funding costs. The bank’s residential mortgage portfolio totaled $3.988 billion, showing a commitment to providing affordable home financing options. Additionally, interest rates on loans are strategically set to attract both personal and business clients.
Commitment to community development
Hancock Whitney Corporation is deeply committed to community development, actively investing in local economies. The bank has a strong focus on initiatives that support economic growth in the regions it serves. For instance, the bank's investments in tax-advantaged securities and tax credit projects are aimed at enhancing community development, with expected benefits from federal and state tax credits totaling approximately $9.8 million over the next three years. This commitment is reflected in its community-focused lending practices and partnerships with local organizations.
Robust online banking services
The bank provides sophisticated online banking services that enhance customer convenience and accessibility. As of September 30, 2024, Hancock Whitney reported $29 billion in total deposits, demonstrating a strong online and digital banking presence. The bank's digital platforms offer services such as mobile banking, online account management, and secure transaction processing, which are critical in meeting the evolving needs of tech-savvy customers.
| Financial Metric | Value (as of September 30, 2024) |
|---|---|
| Total Loans | $23.5 billion |
| Net Interest Margin | 3.39% |
| Residential Mortgage Portfolio | $3.988 billion |
| Total Deposits | $29 billion |
| Expected Tax Credit Benefits | $9.8 million (over three years) |
Hancock Whitney Corporation (HWC) - Business Model: Customer Relationships
Dedicated relationship managers
Hancock Whitney Corporation employs dedicated relationship managers to enhance customer engagement and service delivery. These managers focus on high-net-worth individuals and commercial clients, fostering strong relationships that drive loyalty and retention. As of September 30, 2024, the bank reported a total of 3,458 full-time equivalent employees, indicating a robust infrastructure to support personalized customer service.
Regular customer feedback mechanisms
The corporation implements regular feedback mechanisms to gather insights from customers about their experiences and needs. This is essential for continuous improvement in service delivery. In the third quarter of 2024, net income increased to $115.6 million, reflecting a commitment to understanding and responding to customer feedback, which helps enhance overall satisfaction and loyalty.
Community-oriented events and programs
Hancock Whitney actively engages in community-oriented events and programs that not only strengthen customer relationships but also enhance its brand presence. For instance, the bank's community initiatives include financial literacy programs and sponsorship of local events. These efforts not only serve the community but also increase customer engagement, fostering a sense of belonging among clients.
Loyalty rewards for long-term customers
The bank offers loyalty rewards to long-term customers, enhancing customer retention and encouraging more significant engagement with its financial products. As of the third quarter of 2024, Hancock Whitney reported a significant increase in service charges on deposit accounts, totaling $23.1 million, up 4% from the previous quarter, indicating that loyalty programs may be effectively driving account usage.
| Customer Engagement Strategy | Performance Metric | Q3 2024 Value | Q2 2024 Value | Year-over-Year Change |
|---|---|---|---|---|
| Dedicated Relationship Managers | FTE Employees | 3,458 | 3,541 | -2.34% |
| Customer Feedback Mechanisms | Net Income | $115.6 million | $114.6 million | +0.87% |
| Community Programs | Community Events Sponsored | 20+ | 15 | +33.33% |
| Loyalty Rewards | Service Charges on Deposits | $23.1 million | $22.3 million | +3.6% |
Hancock Whitney Corporation (HWC) - Business Model: Channels
Physical bank branches
Hancock Whitney Corporation operates a network of physical bank branches across several states. As of September 30, 2024, the bank had a total of 184 branches, providing customers with direct access to banking services. The branches are strategically located in areas with high customer density, allowing for convenient face-to-face interactions. The branch network supports services such as personal banking, business banking, and wealth management.
Online banking platform
The online banking platform of Hancock Whitney has seen significant enhancements, focusing on user experience and accessibility. As of the third quarter of 2024, the bank reported that over 60% of its customers actively use the online banking platform. The platform offers a range of services including account management, fund transfers, bill payments, and loan applications. The bank's investment in technology has led to a 25% increase in online transactions since the previous year.
| Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Active Online Users | 600,000 | 480,000 | 25% |
| Total Online Transactions | 5 million | 4 million | 25% |
Mobile banking application
The mobile banking application of Hancock Whitney is a key channel for customer engagement. As of September 30, 2024, the app has been downloaded over 500,000 times, with 45% of customers utilizing it for daily banking needs. The app includes features such as mobile check deposit, fund transfers, and real-time alerts. The bank reported a 30% increase in mobile transactions year-over-year, indicating strong customer adoption and preference for mobile banking.
| Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| App Downloads | 500,000 | 385,000 | 30% |
| Monthly Active Users | 250,000 | 192,000 | 30% |
Customer service call centers
Hancock Whitney maintains customer service call centers to support customer inquiries and assistance. As of September 30, 2024, the bank reported an average response time of 2 minutes for customer calls, with a customer satisfaction score of 90% for service quality. The call center handles a variety of issues including account inquiries, technical support for online services, and loan application assistance. The bank continues to invest in training and technology to improve service efficiency.
| Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Average Response Time (minutes) | 2 | 3 | -33% |
| Customer Satisfaction Score (%) | 90% | 85% | 5% |
Hancock Whitney Corporation (HWC) - Business Model: Customer Segments
Individual Consumers
Hancock Whitney Corporation serves individual consumers by providing a range of personal banking products, including checking and savings accounts, residential mortgages, and consumer loans. As of September 30, 2024, the total residential mortgage portfolio amounted to approximately $3.99 billion, reflecting a slight increase of $102.2 million or 3% from December 31, 2023. Additionally, consumer loans totaled $1.37 billion, which represents a decrease of $76.2 million or 5% from the previous year.
Small and Medium-Sized Enterprises
For small and medium-sized enterprises (SMEs), Hancock Whitney offers commercial and industrial loans, which totaled $12.68 billion as of September 30, 2024. This figure indicates a decrease of $366.6 million from December 31, 2023. The bank focuses on providing working capital, equipment financing, and business expansion loans tailored to the needs of middle-market and smaller commercial entities.
Commercial Real Estate Developers
Hancock Whitney caters to commercial real estate developers through its specialized loan products. As of September 30, 2024, the total loans for commercial real estate, including income-producing and construction loans, amounted to approximately $5.41 billion. This represents a decrease of $104.8 million or 7% from the previous quarter. The bank's strategy involves focusing on resilient projects, especially in the current economic environment.
Non-Profit Organizations
Non-profit organizations are also significant customers for Hancock Whitney. The bank provides tailored financial solutions, including loans and deposit services, to support the operational needs of these entities. Specific financial data for non-profit organizations is not separately disclosed, but they are included in the broader commercial and industrial loan portfolio, which totaled $12.68 billion.
| Customer Segment | Financial Data | Details |
|---|---|---|
| Individual Consumers | $3.99 billion (Residential Mortgages) | Increase of $102.2 million or 3% from December 31, 2023 |
| Small and Medium-Sized Enterprises | $12.68 billion (Commercial and Industrial Loans) | Decrease of $366.6 million from December 31, 2023 |
| Commercial Real Estate Developers | $5.41 billion (Commercial Real Estate Loans) | Decrease of $104.8 million or 7% from the previous quarter |
| Non-Profit Organizations | Included in Commercial and Industrial Loans | Comprehensive financial solutions tailored for operational needs |
Hancock Whitney Corporation (HWC) - Business Model: Cost Structure
Employee salaries and benefits
The compensation expense for Hancock Whitney Corporation for the third quarter of 2024 was $94.4 million, while employee benefits amounted to $21.4 million. For the nine months ended September 30, 2024, the total personnel expense was $355.7 million.
Technology and infrastructure maintenance
Data processing expenses for the third quarter of 2024 were $31.1 million, reflecting ongoing investments in technology infrastructure. The total amortization of intangible assets for the same period was reported at $2.3 million.
Marketing and advertising expenses
Marketing and advertising expenses for the third quarter of 2024 totaled $3.3 million, with total business development-related expenses reaching $7.6 million. For the nine months ended September 30, 2024, business development-related expenses were $22.3 million.
Regulatory compliance costs
Deposit insurance and regulatory fees incurred in the third quarter of 2024 were $5.5 million. The total noninterest expense for the nine months ended September 30, 2024, was $617.6 million, which includes various regulatory compliance costs.
| Cost Type | Q3 2024 Amount ($ in millions) | 9 Months 2024 Amount ($ in millions) |
|---|---|---|
| Employee Salaries | 94.4 | 288.1 |
| Employee Benefits | 21.4 | 67.6 |
| Data Processing | 31.1 | 91.2 |
| Marketing & Advertising | 3.3 | 9.5 |
| Regulatory Fees | 5.5 | 20.4 |
| Total Noninterest Expense | 203.8 | 617.6 |
Hancock Whitney Corporation (HWC) - Business Model: Revenue Streams
Interest income from loans
As of September 30, 2024, Hancock Whitney Corporation reported total loans amounting to $23.5 billion, reflecting a decrease of $456 million from June 30, 2024. The decrease is attributed to a decline in their shared national credit portfolio. The net interest income for the third quarter of 2024 was $274.5 million, up from $273.3 million in the previous quarter, with a net interest margin of 3.39%.
Fees from banking services
For the third quarter of 2024, Hancock Whitney Corporation generated the following fees from banking services:
| Service Type | Q3 2024 Fees (in thousands) | Q2 2024 Fees (in thousands) | Q3 2023 Fees (in thousands) |
|---|---|---|---|
| Service charges on deposit accounts | $23,144 | $22,275 | $22,264 |
| Trust fees | $18,014 | $18,473 | $16,593 |
| Bank card and ATM fees | $21,639 | $21,827 | $20,555 |
| Credit-related fees | $2,905 | $3,130 | $3,253 |
The total noninterest income for the third quarter of 2024 was $95.9 million, compared to $89.2 million in the second quarter of 2024, and $86.0 million in the third quarter of 2023.
Investment and annuity fees
Investment and annuity fees and insurance commissions totaled $10.9 million in Q3 2024, marking an increase of 11% from the previous quarter. For the nine months ended September 30, 2024, these fees reached $32.5 million, which is a 27% increase compared to the same period in 2023. This growth is attributed to strong annuity sales performance and increased trading commissions amid favorable market conditions.
Income from trust services
Trust services generated $18.0 million in fees for the third quarter of 2024, up 6% year-over-year from $17.0 million in Q3 2023. For the nine months ended September 30, 2024, trust fees totaled $53.6 million, reflecting a 6% increase from $50.7 million in the same period of the previous year.
Income from bank-owned life insurance (BOLI)
Income from BOLI was $4.4 million for the third quarter of 2024, representing a 16% increase from the prior quarter. For the nine months ended September 30, 2024, the total income from BOLI reached $12.4 million, which is a 20% increase from $10.3 million in the same period of 2023.
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.