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Hancock Whitney reports third quarter 2018 EPS of $.96

Results include $4.8 million, or $.05 per share after tax, impact from nonoperating items

GULFPORT, Miss., Oct. 16, 2018 (GLOBE NEWSWIRE) -- Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the third quarter of 2018. Net income for the third quarter of 2018 was $83.9 million, or $.96 per diluted common share (EPS), compared to $71.2 million, or $.82 EPS in the second quarter of 2018 and $58.9 million, or $.68 EPS, in the third quarter of 2017. The third quarter of 2018 included $4.8 million ($.05 per share after-tax impact) of nonoperating items. The second quarter of 2018 included $15.8 million ($.14 per share impact) of nonoperating items and the third quarter of 2017 included nonoperating items of $11.4 million ($.08 per share impact).

Highlights of the company’s third quarter 2018 results (compared to second quarter 2018):

  • Closed Capital One trust & asset management acquisition July 13, 2018; added $5.5 million in fee income (trust), $4.1 million in expenses (operating) and approximately $229 million in deposits in 3Q18; nonoperating items totaled $4.8 million and are primarily related to the acquisition
  • EPS increased $.14 linked quarter to $.96; excluding nonoperating items EPS increased $.05 to $1.01
  • Net income increased $12.7 million, or 18% linked-quarter; excluding nonoperating items, earnings increased $4.0 million, or 5%
  • Return on average assets (ROA) improved 15 bps to 1.19%; excluding nonoperating items, ROA increased 2 bps to 1.24%
  • Operating leverage increased approximately $1.5 million linked-quarter; revenue up $9.3 million, operating expense up $7.8 million
  • Criticized commercial loans declined $63 million, or 7%, linked-quarter; $51 million energy, $12 million nonenergy
  • Loans increased $173 million linked-quarter (includes approximately $90 million in payoffs at quarter end)
  • Energy portfolio less than 5% of total loans (4.7%); no energy charge-offs during quarter

“The third quarter’s results reflect steady progress towards achieving our goals and enhancing shareholder value,” said John M. Hairston, President and CEO. “We hit our operating EPS target this quarter at $1.01, ROA of 1.24% is just below the top end of our targeted range, criticized loans, both energy and nonenergy, continued to improve, and our energy portfolio is now below 5% of total loans, with the end of the current cycle largely upon us. We completed the Capital One Trust and Asset Management acquisition which contributed to the quarter’s improved operating leverage, and we are committed to relentless pursuit of continued improvement.”

Loans
Total loans at September 30, 2018 were $19.5 billion, up approximately $173 million, or 1%, linked-quarter. Net loan growth during the quarter continues to be diversified across the regions and also in areas identified as part of the company’s revenue-generating initiatives. Net loan growth was short of expectations due to approximately $90 million in payoffs received at quarter end.

Average loans totaled $19.5 billion for the third quarter of 2018, up $271 million, or 1%, linked-quarter.

Energy
At September 30, 2018, loans to the energy industry totaled $927 million, or 4.7% of total loans. The energy portfolio declined $58 million linked-quarter, and is comprised of credits to both the exploration and production (E&P) sector and the support and services sectors. Payoffs and paydowns of $151 million were partially offset by $93 million in fundings. There were no energy charge-offs during the third quarter.

With oil prices approximating $70 a barrel, and continued stabilization in prices, we anticipate the cycle for us could end soon. We believe we are adequately reserved for losses on remaining credits, and do not expect a significant provision for any additional issues. Management continues to estimate that net charge-offs from energy-related credits could approximate up to $95 million over the duration of the cycle, of which approximately $79 million has been taken to-date.

Deposits
Total deposits at September 30, 2018 were $22.4 billion, up $182 million, or 1%, from June 30, 2018. Average deposits for the third quarter of 2018 were $22.0 billion, down $80 million, or less than 1%, linked-quarter.

Noninterest-bearing demand deposits (DDAs) totaled $8.1 billion at September 30, 2018, down $25 million, or less than 1%, from June 30, 2018. DDAs comprised 36% of total period-end deposits at September 30, 2018.

Interest-bearing transaction and savings deposits totaled $8.0 billion at the end of the third quarter of 2018, up $261 million, or 3%, from June 30, 2018. The increase was mainly related to deposits associated with the trust and asset management acquisition. Time deposits of $3.7 billion were up $188 million, or 5%, while interest-bearing public fund deposits decreased $241 million, or 8%, to $2.6 billion at September 30, 2018.

Asset Quality
Nonperforming assets (NPAs) totaled $391.3 million at September 30, 2018, down $25.2 million, or 6%, from June 30, 2018. During the third quarter of 2018, total nonperforming loans decreased approximately $30.4 million, while foreclosed and surplus real estate (ORE) and other foreclosed assets increased approximately $5.1 million. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 2.00% at September 30, 2018, down 15 bps from June 30, 2018.

The total allowance for loan losses (ALLL) was $214.5 million at September 30, 2018, virtually unchanged from June 30, 2018. There was a shift in the allowance from energy to nonenergy during the quarter. The allowance for credits in the energy portfolio totaled $50.2 million, or 5.4% of energy loans, at September 30, 2018, as compared to $59.0 million, or 6.0% of energy loans, at June 30, 2018. The allowance for credits in the nonenergy portfolio totaled $164.3 million, or 0.88% of nonenergy loans, at September 30, 2018, as compared to $155.6 million, or 0.85% of nonenergy loans, at June 30, 2018. The ratio of the allowance for loan losses to period-end loans was 1.10% at September 30, 2018, down 1 bp from 1.11% at June 30, 2018.

Net charge-offs were $6.9 million, or 0.14% of average total loans on an annualized basis in the third quarter of 2018, up from $5.1 million, or 0.11% of average total loans in the second quarter of 2018. During the third quarter of 2018, the company recorded a total provision for loan losses of $6.9 million, down from $8.9 million in the second quarter of 2018. There were no energy charge-offs in the third quarter, compared to a net recovery of $1.9 million in the second quarter.

Net Interest Income and Net Interest Margin (NIM)
Net interest income (TE) for the third quarter of 2018 was $218.3 million, up $2.7 million from the second quarter of 2018. The increase is primarily due to one more accrual day and a higher level of average earning assets in the quarter, partially offset by a 4 bps lower net interest margin.

Average earning assets were $25.8 billion for the third quarter of 2018, up $441 million, or 2%, from the second quarter of 2018. The net interest margin (TE) was 3.36% for the third quarter of 2018, down 4 bps from the second quarter of 2018. The decrease in the margin reflects a positive impact from a 6 bp increase in the average earning asset yield (an 8 bp increase in loan yield and a 5 bp increase in yield on the securities portfolio), partially offset by an 11 bp increase in the cost of funds.

Noninterest Income
Noninterest income totaled $75.5 million for the third quarter of 2018, up $6.7 million, or 10%, from the second quarter of 2018.

Service charges on deposits totaled $21.4 million for the third quarter of 2018, up $0.4 million, or 2%, from the second quarter of 2018. Bank card and ATM fees totaled $14.9 million, down $0.6 million, or 4%, from the second quarter of 2018 due to seasonality and lower merchant fees.

Trust fees totaled $16.7 million, up $5.1 million, or 44% linked-quarter. On July 13, 2018, the Capital One Trust and Asset Management acquisition was completed. In the third quarter of 2018, we added approximately $5.5 million in trust fee income related to this acquisition. The net decline from the second quarter reflects seasonality related to tax season.

Investment and annuity income and insurance fees totaled $6.7 million, up $0.4 million, or 6%, linked-quarter. Fees from secondary mortgage operations totaled $4.3 million for the third quarter of 2018, up $0.4 million, or 9%, linked-quarter. Other noninterest income totaled $11.6 million, up $1.0 million, or 10%, from the second quarter of 2018. The increase is mostly due to gains from miscellaneous asset sales.

Noninterest Expense & Taxes
Noninterest expense for the third quarter of 2018 totaled $181.2 million, down $3.2 million, or 2%, from the second quarter of 2018. Included in the third quarter total was $4.8 million of nonoperating expense, mainly related to the trust and asset management acquisition. There was $15.8 million of nonoperating expense in the second quarter of 2018. Excluding nonoperating items, operating expense for the third quarter of 2018 totaled $176.4 million, up $7.8 million, or 5% linked-quarter. The discussion below excludes nonoperating items.

The completion of the trust and asset management acquisition added approximately $4.1 million in expense in the third quarter of 2018 from the transaction closure date of July 13, 2018.

Total personnel expense was $101.2 million in the third quarter of 2018, up $4.3 million, or 4%, from the second quarter of 2018. Adjusting for the trust and asset management acquisition, personnel expense was up $2.2 million mainly related to incentive pay.

Occupancy and equipment expense totaled $15.5 million in the third quarter of 2018, up $0.1 million, or less than 1%, from the second quarter of 2018.

Amortization of intangibles totaled $5.6 million for the third quarter of 2018, up $0.3 million or 6% linked-quarter mostly related to the trust and asset management acquisition. There was virtually no ORE expense in the third quarter of 2018, compared to gains on ORE dispositions exceeding ORE expense by $0.3 million in the second quarter of 2018.

Other operating expense totaled $54.1 million in the third quarter of 2018, up $2.7 million, or 5%, from the second quarter of 2018. After adjusting for the trust and asset management acquisition, other operating expense was up $1.8 million. The linked quarter increase was mainly related to increased expense on revenue-generating initiatives partly offset by miscellaneous expense items.

The effective income tax rate for the third quarter of 2018 was 18%. Management expects the tax rate in the fourth quarter of 2018 to approximate 8-10%. The lower tax rate reflects the impact of fourth quarter stock compensation vesting and other tax reform related strategies. The effective income tax rate continues to be less than the statutory rate due primarily to tax-exempt income and tax credits.

Capital
Common shareholders’ equity at September 30, 2018 totaled $3.0 billion, up $49 million, or 2%, from second quarter 2018. The tangible common equity (TCE) ratio was 7.67%, down 9 bps from June 30, 2018. The decline is mainly related to the trust and asset management acquisition during the third quarter. Additional capital ratios are included in the financial tables.

Conference Call and Slide Presentation
Management will host a conference call for analysts and investors at 8:30 a.m. Central Time on Wednesday, October 17, 2018 to review the results. A live listen-only webcast of the call will be available under the Investor Relations section of Hancock Whitney’s website at www.hancockwhitney.com/investors. A link to the release with additional financial tables, and a link to a slide presentation related to third quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial (877) 564-1219 or (973) 638-3429. An audio archive of the conference call will be available under the Investor Relations section of our website. A replay of the call will also be available through October 24, 2018 by dialing (855) 859-2056 or (404) 537-3406, passcode 9595837.

About Hancock Whitney
Since the late 1800s, Hancock Whitney has embodied core values of Honor & Integrity, Strength & Stability, Commitment to Service, Teamwork, and Personal Responsibility. Hancock Whitney offices and financial centers in Mississippi, Alabama, Florida, Louisiana, and Texas offer comprehensive financial products and services, including traditional and online banking; commercial and small business banking; private banking; trust and investment services; healthcare banking; certain insurance services; and mortgage services. The company also operates a loan production office in Nashville, Tennessee, as well as trust and asset management offices in New Jersey and New York. BauerFinancial, Inc., the nation’s leading independent bank rating and analysis firm, consistently recommends Hancock Whitney as one of America’s most financially sound banks. More information is available at www.hancockwhitney.com.

Non-GAAP Financial Measures
This news release includes non-GAAP financial measures to describe Hancock Whitney’s performance. The reconciliations of those measures to GAAP measures are provided either in the financial tables or in Appendix A thereto.

Consistent with Securities and Exchange Commission Industry Guide 3, the company presents net interest income, net interest margin and efficiency ratios on a fully taxable equivalent (“TE”) basis. The TE basis adjusts for the tax-favored status of net interest income from certain loans and investments using the statutory federal tax rate to increase tax-exempt interest income to a taxable equivalent basis. The company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

The company presents certain additional non-GAAP financial measures to assist the reader with a better understanding of the company’s performance period over period, as well as to provide investors with assistance in understanding the success management has experienced in executing its strategic initiatives. These non-GAAP measures may reference the concepts “core” or “operating.” The company uses the term “core” to describe a financial measure that excludes income or expense arising from accretion or amortization of fair value adjustments recorded as part of purchase accounting. The company uses the term “operating” to describe a financial measure that excludes income or expense considered to be nonoperating in nature. Items identified as nonoperating are those that, when excluded from a reported financial measure, provide management or the reader with a measure that may be more indicative of forward-looking trends in the company’s business.

We define Core Net Interest Income as net interest income (TE) excluding net purchase accounting accretion and amortization. We define Core Net Interest Margin as core net interest income expressed as a percentage of average earning assets. A reconciliation of reported net interest income to core net interest income and reported net interest margin to core net interest margin is included in Appendix A.

We define Operating Revenue as net interest income (TE) and noninterest income less nonoperating revenue.  We define Operating Pre-Provision Net Revenue as operating revenue (TE) less noninterest expense, excluding nonoperating items. Management believes that operating pre-provision net revenue is a useful financial measure because it enables investors and others to assess the company’s ability to generate capital to cover credit losses through a credit cycle. A reconciliation of reported net interest income to operating pre-provision net revenue is included in Appendix A.

We define Operating Earnings as reported net income excluding nonoperating items net of income tax.  We define Operating Earnings per Share as operating earnings expressed as an amount available to each common shareholder on a diluted basis. A reconciliation of reported net income to operating earnings is presented in the Income Statement table and a reconciliation of reported earnings per share – diluted to operating earnings per share – diluted is presented in Appendix A. 

Important Cautionary Statement About Forward-Looking Statements
This news release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements that we may make include statements regarding balance sheet and revenue growth, the provision for loans losses, loan growth expectations, management’s predictions about charge-offs for loans, including energy-related credits, the impact of changes in oil and gas prices on our energy portfolio, the impact of the transaction with Capital One on our performance and financial condition, including our ability to successfully integrate the businesses, deposit trends, credit quality trends, net interest margin trends, future expense levels, success of revenue-generating initiatives, projected tax rates, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts such as accretion levels, increased cybersecurity risks, including potential business disruptions or financial losses, and the financial impact of regulatory requirements and tax reform legislation. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “forecast,” “goals,” “targets,” “initiatives,” “focus,” “potentially,” “probably,” “projects,” “outlook”, or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events.

Forward-looking statements are subject to significant risks and uncertainties. Any forward-looking statement made in this release is subject to the safe harbor protections set forth in the Private Securities Litigation Reform Act of 1995. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward looking statements. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017 and in other periodic reports that we file with the SEC.

                                         
HANCOCK WHITNEY CORPORATION
FINANCIAL HIGHLIGHTS
(Unaudited)
                                         
    Three Months Ended
   Nine Months Ended  
(dollars and common share data in thousands, except per share amounts)   9/30/2018
  6/30/2018
  9/30/2017
  9/30/2018
  9/30/2017
NET INCOME                                        
Net interest income   $   214,194     $ 211,547     $ 202,857     $   631,405     $ 584,265  
Net interest income (TE) (a)       218,289       215,628       211,436         643,544       609,706  
Provision for loan losses       6,872       8,891       13,040         28,016       43,982  
Noninterest income       75,518       68,832       67,115         210,602       198,093  
Noninterest expense       181,187       184,402       177,616         536,380       524,628  
Income tax expense       17,775       15,909       20,414         50,081       53,565  
Net income   $   83,878     $   71,177     $   58,902     $   227,530     $   160,183  
Earnings excluding nonoperating items                                        
Net income   $   83,878     $ 71,177     $ 58,902     $   227,530     $ 160,183  
Nonoperating items, net of income tax benefit       3,813       12,486       7,405         22,081       15,679  
Operating earnings   $   87,691     $ 83,663     $ 66,307     $   249,611     $ 175,862  
PERIOD-END BALANCE SHEET DATA                                        
Loans   $   19,543,717     $ 19,370,917     $ 18,786,285     $   19,543,717     $ 18,786,285  
Securities       5,987,447       6,113,873       5,624,552         5,987,447       5,624,552  
Earning assets       25,668,281       25,625,047       24,545,798         25,668,281       24,545,798  
Total assets       28,098,175       27,925,447       26,816,755         28,098,175       26,816,755  
Noninterest-bearing deposits       8,140,530       8,165,796       7,896,384         8,140,530       7,896,384  
Total deposits       22,417,807       22,235,338       21,533,859         22,417,807       21,533,859  
Common shareholders' equity       2,978,878       2,929,555       2,863,275         2,978,878       2,863,275  
AVERAGE BALANCE SHEET DATA                                        
Loans   $   19,464,639     $ 19,193,234     $ 18,591,219     $   19,230,385     $ 18,092,622  
Securities (b)       6,186,410       6,032,058       5,679,841         6,039,645       5,321,974  
Earning assets       25,832,372       25,391,025       24,487,426         25,445,886       23,871,477  
Total assets       28,026,923       27,485,052       26,677,573         27,585,910       25,993,814  
Noninterest-bearing deposits       8,017,353       8,149,521       7,775,913         8,039,574       7,670,517  
Total deposits       22,021,559       22,101,474       21,349,818         22,055,403       20,517,779  
Common shareholders' equity       2,952,431       2,908,997       2,838,517         2,911,706       2,786,444  
COMMON SHARE DATA                                        
Earnings per share - diluted   $   0.96     $ 0.82     $ 0.68     $   2.61     $ 1.85  
Cash dividends per share       0.27       0.24       0.24         0.75       0.72  
Book value per share (period-end)       34.90       34.33       33.78         34.90       33.78  
Tangible book value per share (period-end)       24.44       24.66       23.92         24.44       23.92  
Weighted average number of shares - diluted       85,539       85,483       84,980         85,482       84,818  
Period-end number of shares       85,364       85,335       84,767         85,364       84,767  
Market data                                        
High sales price   $   53.00     $ 55.00     $ 50.40     $   56.40     $ 52.94  
Low sales price       46.05       45.76       41.05         45.76       41.05  
Period-end closing price       47.55       46.65       48.45         47.55       48.45  
Trading volume       28,332       35,705       33,243         99,407       117,397  
PERFORMANCE RATIOS                                        
Return on average assets       1.19 %     1.04 %     0.88 %       1.10 %     0.82 %
Return on average common equity       11.27 %     9.81 %     8.23 %       10.45 %     7.69 %
Return on average tangible common equity       16.11 %     13.72 %     11.68 %       14.75 %     10.77 %
Tangible common equity ratio (c)       7.67 %     7.76 %     7.80 %       7.67 %     7.80 %
Net interest margin (TE) (d)       3.36 %     3.40 %     3.44 %       3.38 %     3.41 %
Average loan/deposit ratio       88.39 %     86.84 %     87.08 %       87.19 %     88.18 %
Allowance for loan losses as a percentage of period-end loans       1.10 %     1.11 %     1.19 %       1.10 %     1.19 %
Annualized net charge-offs to average loans       0.14 %     0.11 %     0.25 %       0.17 %     0.35 %
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due       55.25 %     53.35 %     56.45 %       55.25 %     56.45 %
Select performance measures excluding nonoperating items                                        
Operating earnings per share - diluted (d)   $   1.01     $ 0.96     $ 0.76     $   2.87     $ 2.03 %
Return on average assets - operating       1.24 %     1.22 %     0.99 %       1.21 %     0.90 %
Return on average common equity - operating       11.78 %     11.54 %     9.27 %       11.46 %     8.44 %
Return on average tangible common equity - operating       16.84 %     16.12 %     13.14 %       16.18 %     11.82 %
Efficiency ratio (e)       58.11 %     57.40 %     57.50 %       57.68 %     59.70 %
Noninterest income as a percent of total revenue (TE) - operating       25.70 %     24.20 %     24.09 %       24.76 %     24.11 %
FTE headcount       3,858       3,780       3,979         3,858       3,979  
                                         

(a) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21% for the three and nine months ended September 30, 2018 and the three months ended June 30, 2018, and 35% for the three and nine months ended September 30, 2017.

(b) Average securities does not include unrealized holding gains/losses on available for sale securities.

(c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets.

(d) Refer to Appendix A for reconciliation of this non-GAAP measure.

(e) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items.

HANCOCK WHITNEY CORPORATION
QUARTERLY FINANCIAL HIGHLIGHTS
(Unaudited)
                                         
    Three Months Ended
(dollars and common share data in thousands, except per share amounts)   9/30/2018   6/30/2018   3/31/2018   12/31/2017   9/30/2017
NET INCOME                                        
Net interest income   $   214,194     $ 211,547     $ 205,664     $ 208,047     $ 202,857  
Net interest income (TE) (a)       218,289       215,628       209,627       216,996       211,436  
Provision for loan losses       6,872       8,891       12,253       14,986       13,040  
Noninterest income       75,518       68,832       66,252       69,688       67,115  
Noninterest expense       181,187       184,402       170,791       168,063       177,616  
Income tax expense       17,775       15,909       16,397       39,237       20,414  
Net income   $   83,878     $   71,177     $   72,475     $   55,449     $   58,902  
Earnings excluding nonoperating items                                        
Net income   $   83,878     $ 71,177     $ 72,475     $ 55,449     $ 58,902  
Nonoperating items, net of income tax benefit       3,813       12,486       5,782             7,405  
Income tax resulting from re-measurement of deferred tax asset       —                   19,520        
Operating earnings   $   87,691     $ 83,663     $ 78,257     $ 74,969     $ 66,307  
PERIOD-END BALANCE SHEET DATA                                        
Loans   $ 19,543,717     $ 19,370,917     $ 19,092,504     $ 19,004,163     $ 18,786,285  
Securities       5,987,447       6,113,873       5,930,076       5,888,380       5,624,552  
Earning assets       25,668,281       25,625,047       25,105,948       25,024,792       24,545,798  
Total assets       28,098,175       27,925,447       27,297,337       27,336,086       26,816,755  
Noninterest-bearing deposits       8,140,530       8,165,796       8,230,060       8,307,497       7,896,384  
Total deposits       22,417,807       22,235,338       22,485,722       22,253,202       21,533,859  
Common shareholders' equity       2,978,878       2,929,555       2,896,038       2,884,949       2,863,275  
AVERAGE BALANCE SHEET DATA                                        
Loans   $   19,464,639     $ 19,193,234     $ 19,028,490     $ 18,839,537     $ 18,591,219  
Securities (b)       6,186,410       6,032,058       5,897,290       5,801,451       5,679,841  
Earning assets       25,832,372       25,391,025       25,106,283       24,812,676       24,487,426  
Total assets       28,026,923       27,485,052       27,237,077       26,973,507       26,677,573  
Noninterest-bearing deposits       8,017,353       8,149,521       7,951,121       8,095,563       7,775,913  
Total deposits       22,021,559       22,101,474       22,043,419       21,762,757       21,349,818  
Common shareholders' equity       2,952,431       2,908,997       2,872,813       2,867,475       2,838,517  
COMMON SHARE DATA                                        
Earnings per share - diluted   $   0.96     $ 0.82     $ 0.83     $ 0.64     $ 0.68  
Cash dividends per share       0.27       0.24       0.24       0.24       0.24  
Book value per share (period-end)       34.90       34.33       33.96       33.86       33.78  
Tangible book value per share (period-end)       24.44       24.66       24.22       24.05       23.92  
Weighted average number of shares - diluted       85,539       85,483       85,423       85,303       84,980  
Period-end number of shares       85,364       85,335       85,285       85,200       84,767  
Market data                                        
High sales price   $   53.00     $ 55.00     $ 56.40     $ 53.35     $ 50.40  
Low sales price       46.05       45.76       49.48       46.18       41.05  
Period-end closing price       47.55       46.65       51.70       49.50       48.45  
Trading volume       28,332       35,705       35,370       29,308       33,243  
PERFORMANCE RATIOS                                        
Return on average assets      1.19 %     1.04 %     1.08 %     0.82 %     0.88 %
Return on average common equity       11.27 %     9.81 %     10.23 %     7.67 %     8.23 %
Return on average tangible common equity       16.11 %     13.72 %     14.41 %     10.81 %     11.68 %
Tangible common equity ratio (c)       7.67 %     7.76 %     7.80 %     7.73 %     7.80 %
Net interest margin (TE) (d)       3.36 %     3.40 %     3.37 %     3.48 %     3.44 %
Average loan/deposit ratio       88.39 %     86.84 %     86.32 %     86.57 %     87.08 %
Allowance for loan losses as a percent of period-end loans       1.10 %     1.11 %     1.10 %     1.14 %     1.19 %
Annualized net charge-offs to average loans       0.14 %     0.11 %     0.26 %     0.44 %     0.25 %
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due       55.25 %     53.35 %     46.37 %     54.18 %     56.45 %
Select performance measures excluding nonoperating items                                        
Operating earnings per share - diluted (d)   $   1.01     $ 0.96     $ 0.90     $ 0.86     $ 0.76  
Return on average assets - operating       1.24 %     1.22 %     1.17 %     1.10 %     0.99 %
Return on average common equity - operating       11.78 %     11.54 %     11.05 %     10.37 %     9.27 %
Return on average tangible common equity - operating       16.84 %     16.12 %     15.56 %     14.62 %     13.14 %
Efficiency ratio (e)       58.11 %     57.40 %     57.51 %     56.57 %     57.50 %
Noninterest income as a percent of total revenue (TE) - operating       25.70 %     24.20 %     24.33 %     24.31 %     24.09 %
FTE headcount       3,858       3,780       3,775       3,887       3,979  
                                         

(a) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21% for the three months ended September 30, 2018, June 30, 2018 and March 31, 2018, and 35% for the three months ended December 31, 2017 and September 30, 2017.

(b) Average securities does not include unrealized holding gains/losses on available for sale securities.

(c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets.

(d) Refer to Appendix A for reconciliation of this non-GAAP measure.

(e) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items.

For more information
Trisha Voltz Carlson, EVP, Investor Relations Manager
504.299.5208 or trisha.carlson@hancockwhitney.com

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