Hancock Whitney Corp (NASDAQ:HWC) Beats Earnings Estimates

Hancock Whitney Corp (NASDAQ:HWC) stock rose 3.19% (As on Jan 19, 11:25:30 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 21. As of Dec 31, 2021, Tier 1 leverage ratio was 8.25%, up from 7.88% at the end of the year-earlier quarter. Tier 1 risk-based capital ratio was 11.16%, up from 10.61% as of Dec 31, 2020. At the end of the fourth quarter, return on average assets was 1.53%, up from the year-ago period’s 1.25%. Return on average common equity was 15%, up from 12.1% in the prior-year quarter. Net interest income on a tax-equivalent basis declined 3.9% to $231.9 million. Net interest margin (on a tax-equivalent basis) was 2.80%, contracting 42 basis points (bps). Non-interest income was $89.6 million, growing 8.8% year over year. The rise was driven by a jump in almost all fee income components, except for secondary mortgage market operations fees. Total non-interest expenses declined 5.5% to $182.5 million. The decline was mainly attributable to lower other expenses, net occupancy and equipment expenses, as well as personnel expenses.

HWC in the fourth quarter of FY 21 has reported the adjusted earnings per share of $1.51, beating the analysts’ estimates for the adjusted earnings per share of $1.35, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $318.9 million in the fourth quarter of FY 21, missing the analysts’ estimates for revenue of $321.7 million. Loans totaled $21.1 billion at December 31, 2021, up $248.3 million, or 1%, linked-quarter. Core loans increased $652.5 million from September 30, 2021, more than offsetting the impact of $404.3 million in PPP loan forgiveness. Total deposits at December 31, 2021 were $30.5 billion, up $1.3 billion, or 4%, from September 30, 2021. Further, the company’s overall asset quality metrics continued to improve with commercial criticized and total nonperforming loans down 2% and 6%, respectively, linked-quarter. Nonperforming assets (NPAs) totaled $66.8 million at December 31, 2021, down $5.0 million, or 7%, from September 30, 2021.

During the quarter under review, Hancock Whitney repurchased 393,527 shares at an average price of $48.98 per share.

For fiscal 2022, the company expects 2022 core loans to grow 6-8%, deposits to be flat to slightly down, NIM is expected to remain stable to slightly down through mid-2022 and then rise and the tax rate is expected to be in the quarterly range of 19-20% without any changes in tax laws.

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