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Hancock Whitney Corporation’s (HWC - Free Report) fourth-quarter 2020 adjusted earnings per share of 96 cents surpassed the Zacks Consensus Estimate of 91 cents. However, the figure compared unfavorably with the prior-year quarter’s adjusted number of $1.06.
Results for the reported quarter benefitted from an increase in revenues along with lower expenses. However, a significant rise in provisions was an undermining factor. The balance sheet position remained strong in the quarter.
After considering non-recurring items, net income was $103.6 million or $1.17 per share, up from $92.1 million or $1.03 per share recorded in the prior-year quarter.
For 2020, loss per share was 54 cents against earnings of $3.72 recorded in 2019. Net loss was $45.2 million against net income of $327.4 million in the previous year.
Revenues Improve, Expenses Decline
Total revenues for the reported quarter were $320.6 million, up 1.4% year over year. Also, the figure beat the Zacks Consensus Estimate of $318.2 million.
For the year, total revenues of $1.27 billion improved 4.6% from the prior year.
Quarterly, net interest income on a tax-equivalent basis grew 2% year over year to $241.4 million. However, net interest margin (NIM), on a tax-equivalent basis, was 3.22%, contracting 21 basis points (bps) year over year.
Non-interest income was $82.4 million, down marginally from the year-ago level. The decline was primarily due to a fall in almost all fee income components except for secondary mortgage market operations.
Total non-interest expenses declined 2.4% year over year to $193.1 million mainly due to a fall in all cost components except for net occupancy and equipment costs.
As of Dec 31, 2020, total loans were $21.8 billion, down 2% from the prior quarter end. Total deposits increased 2.5% sequentially to $27.7 billion.
Credit Quality: Mixed Bag
Provision for credit losses jumped significantly from $9.2 million in the year-ago quarter to $24.2 million. Also, net charge-offs (NCOs) (annualized) were 0.44% of average total loans, up 26 bps from the year-ago quarter.
However, total non-performing assets declined 53.8% from the prior-year quarter end to $155.8 million.
Capital Ratios Mixed
As of Dec 31, 2020, Tier 1 leverage ratio was 7.87%, down from 8.76% at the end of the year-earlier quarter. Tier 1 risk-based capital ratio was 10.70%, up from 10.50% as of Dec 31, 2019.
First-Quarter 2021 Outlook
Management expects total loan balance to decline.
NIM is expected to be down 10 bps due to high levels of excess liquidity and net paycheck protection program (PPP) activity.
Our Take
Supported by a solid balance sheet position and inorganic expansion efforts, Hancock Whitney remains well-poised for the future. However, near-zero interest rates and economic slowdown remain major near-term concerns.
Hancock Whitney Corporation Price, Consensus and EPS Surprise
Washington Federal’s (WAFD - Free Report) first-quarter fiscal 2021 (ended Dec 31) earnings of 51 cents per share surpassed the Zacks Consensus Estimate of 42 cents. However, the figure reflects a year-over-year decline of 40.7%.
Bank of New York Mellon Corporation’s (BK - Free Report) fourth-quarter 2020 adjusted earnings per share of 96 cents were 5% lower than the prior-year quarter’s level. The Zacks Consensus Estimate for earnings was pegged at 93 cents.
Zions Bancorporation’s (ZION - Free Report) fourth-quarter 2020 net earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.01. Moreover, the reported figure represents a rise of 71.1% from the year-ago quarter’s number.
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Hancock Whitney (HWC) Q4 Earnings Beat, Revenues Rise Y/Y
Hancock Whitney Corporation’s (HWC - Free Report) fourth-quarter 2020 adjusted earnings per share of 96 cents surpassed the Zacks Consensus Estimate of 91 cents. However, the figure compared unfavorably with the prior-year quarter’s adjusted number of $1.06.
Results for the reported quarter benefitted from an increase in revenues along with lower expenses. However, a significant rise in provisions was an undermining factor. The balance sheet position remained strong in the quarter.
After considering non-recurring items, net income was $103.6 million or $1.17 per share, up from $92.1 million or $1.03 per share recorded in the prior-year quarter.
For 2020, loss per share was 54 cents against earnings of $3.72 recorded in 2019. Net loss was $45.2 million against net income of $327.4 million in the previous year.
Revenues Improve, Expenses Decline
Total revenues for the reported quarter were $320.6 million, up 1.4% year over year. Also, the figure beat the Zacks Consensus Estimate of $318.2 million.
For the year, total revenues of $1.27 billion improved 4.6% from the prior year.
Quarterly, net interest income on a tax-equivalent basis grew 2% year over year to $241.4 million. However, net interest margin (NIM), on a tax-equivalent basis, was 3.22%, contracting 21 basis points (bps) year over year.
Non-interest income was $82.4 million, down marginally from the year-ago level. The decline was primarily due to a fall in almost all fee income components except for secondary mortgage market operations.
Total non-interest expenses declined 2.4% year over year to $193.1 million mainly due to a fall in all cost components except for net occupancy and equipment costs.
As of Dec 31, 2020, total loans were $21.8 billion, down 2% from the prior quarter end. Total deposits increased 2.5% sequentially to $27.7 billion.
Credit Quality: Mixed Bag
Provision for credit losses jumped significantly from $9.2 million in the year-ago quarter to $24.2 million. Also, net charge-offs (NCOs) (annualized) were 0.44% of average total loans, up 26 bps from the year-ago quarter.
However, total non-performing assets declined 53.8% from the prior-year quarter end to $155.8 million.
Capital Ratios Mixed
As of Dec 31, 2020, Tier 1 leverage ratio was 7.87%, down from 8.76% at the end of the year-earlier quarter. Tier 1 risk-based capital ratio was 10.70%, up from 10.50% as of Dec 31, 2019.
First-Quarter 2021 Outlook
Management expects total loan balance to decline.
NIM is expected to be down 10 bps due to high levels of excess liquidity and net paycheck protection program (PPP) activity.
Our Take
Supported by a solid balance sheet position and inorganic expansion efforts, Hancock Whitney remains well-poised for the future. However, near-zero interest rates and economic slowdown remain major near-term concerns.
Hancock Whitney Corporation Price, Consensus and EPS Surprise
Hancock Whitney Corporation price-consensus-eps-surprise-chart | Hancock Whitney Corporation Quote
Currently, Hancock Whitney carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
Washington Federal’s (WAFD - Free Report) first-quarter fiscal 2021 (ended Dec 31) earnings of 51 cents per share surpassed the Zacks Consensus Estimate of 42 cents. However, the figure reflects a year-over-year decline of 40.7%.
Bank of New York Mellon Corporation’s (BK - Free Report) fourth-quarter 2020 adjusted earnings per share of 96 cents were 5% lower than the prior-year quarter’s level. The Zacks Consensus Estimate for earnings was pegged at 93 cents.
Zions Bancorporation’s (ZION - Free Report) fourth-quarter 2020 net earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.01. Moreover, the reported figure represents a rise of 71.1% from the year-ago quarter’s number.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>