NASDAQ$HWC

Hancock Whitney Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported a strong finish to a very challenging year.

Hancock Whitney reported a net income of $103.6 million, or $1.17 per diluted common share, for the fourth quarter of 2020. The results include a $0.21 contribution to EPS from tax strategies implemented at year-end.

  • Tax strategies implemented in the fourth quarter added $0.21 to 4Q earnings
  • Pre-provision net revenue (PPNR) totaled $130.6 million, up $4.3 million, or 3%, linked-quarter
  • Allowance for credit losses (ACL) remains strong at 2.20% (2.42% excluding PPP loans); 4Q20 provision totaled $24.2 million, net charge-offs totaled $24.3 million
  • Nonperforming loans declined $37 million, or 20%, criticized commercial loans declined $19 million, or 5%, linked-quarter

Headline financials

Total Revenue

$321M

Previous: $320M+0.3%
EPS (adj)

$1.17

Previous: $1.06+10.4%
Net Interest Margin (TE)

3.2%

Previous: 3.4%-6.1%
Tangible common equity ratio

7.6%

Previous: 8.4%-9.6%
Common equity tier 1 (CET1) ratio

10.7%

No prior period
Capital Expenditures

$6.66M

Previous: $8.97M-25.8%
Free Cash Flow

$121M

No prior period
Net Income

$104M

Previous: $92.1M+12.4%
Operating Income

$131M

Previous: $126M+3.9%
Cash & Equivalents

$1.33B

No prior period
Total Assets

$33.6B

No prior period
Stock-Based Comp

$4.45M

Previous: $5.41M-17.7%

Revenue & EPS history

Hancock Whitney · Revenue · Quarterly

$321M

Q4 2020+0.3%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Hancock Whitney · $34.5M total across 2 segments · Q2 2021

  • Other income
    $18.2M
  • Trust fees
    $16.3M

Forward guidance

Management expects loans to decline once again in the first quarter of 2021, as significantly more PPP loans are forgiven and opportunities for new organic growth remain low in light of the slow economic environment. As we begin 2021, management expects the first quarter of 2021 NIM to compress as much as 10 bps due to high levels of excess liquidity and net PPP activity (forgiveness versus funding). Similar levels of mortgage and specialty income are not expected in the first quarter of 2021. The company expects the tax rate to return to a normal quarterly range of 18-20% in 2021, absent any changes in tax laws.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.7%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+4.1%

Avg return

30 days after

59%

41 / 69 earnings

Positive

+8.1%

Q2 2021

Best reaction

-8.4%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-1.2%-1.5%
Q4 2025+2.4%-0.3%+5.3%
Q3 2025-6.3%-9.5%-6.2%
Q2 2025-2.2%-1.3%+3.3%
Q1 2025-0.3%-1.0%+16.6%
Q4 2024+1.0%-0.2%-1.7%
Q3 2024+0.5%-1.6%+12.0%
Q2 2024+6.7%+5.0%-3.2%
Q1 2024+0.1%+3.9%+12.5%
Q4 2023-2.2%+0.7%-2.3%
Q3 2023-1.9%-6.2%+14.4%
Q2 2023+5.0%-0.0%-2.7%
Q1 2023+1.0%-2.1%-4.1%
Q4 2022-6.8%-5.5%+0.0%
Q3 2022+4.9%+2.8%+4.8%
Q2 2022+7.7%+6.2%+18.6%
Q1 2022+4.5%-0.8%-3.9%
Q4 2021+0.4%-2.6%-1.9%
Q3 2021+7.4%+7.7%+8.0%
Q2 2021+8.1%+7.5%+9.1%
Q1 2021+2.8%+4.5%+12.8%
Q4 2020-6.2%-7.2%-5.7%
Q3 2020+6.8%+10.5%+30.8%
Q2 2020-7.9%-2.1%+10.2%
Q1 2020+5.8%-3.2%+10.6%
Q4 2019-0.9%-1.2%-8.3%
Q3 2019+0.1%+2.0%+8.8%
Q2 2019+3.1%+5.1%-9.4%
Q1 2019+0.5%-1.9%-5.7%
Q4 2018+7.8%+11.4%+12.4%
Q3 2018-1.9%-5.9%-10.2%
Q2 2018+4.8%+6.7%+6.8%
Q1 2018-7.9%-8.2%-0.8%
Q4 2017+4.3%+4.4%+0.7%
Q3 2017+0.3%+3.0%-1.4%
Q2 2017-6.6%-7.1%-13.7%
Q1 2017+1.1%+4.1%+5.1%
Q4 2016+0.6%+1.2%+6.2%
Q3 2016+5.0%+4.6%+24.9%
Q2 2016+4.6%+5.2%+11.5%
Q1 2016+5.5%
Q4 2015+5.3%
Q3 2015+2.3%
Q2 2015-1.5%
Q1 2015-3.7%
Q4 2014+2.9%
Q3 2014+1.6%
Q2 2014-0.5%
Q1 2014+2.0%
Q4 2013-3.5%
Q3 2013+0.5%
Q2 2013-1.5%
Q1 2013-8.4%
Q4 2012-5.4%
Q3 2012+3.0%
Q2 2012-0.5%
Q1 2012+1.7%
Q4 2011+0.9%
Q3 2011-2.9%
Q2 2011-0.5%
Q1 2010-1.3%
Q1 2011+1.9%
Q4 2009-0.8%
Q4 2010-0.8%
Q4 2008-0.8%
Q3 2010+4.7%
Q3 2009+4.7%
Q2 2009-1.4%
Q2 2010-1.4%

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