Hancock Whitney Corporation

Conference, Catherine Mistich, Investor Relations Manager. You may begin.

Thank you, and good afternoon. During today's call, we may make forward-looking statements. We would like to remind everyone to carefully review the Safe Harbor language that was published with the earnings release and presentation and in the company's most recent 10-K and 10-Q, including the risks and uncertainties identified therein. You should keep in mind that any forward-looking statements made by Hancock-Whitney speak only as of the date on which they were made. As everyone understands, the current economic environment is rapidly evolving and changing. Hancock-Whitney's ability to accurately project results or predict the effects of future plans or strategies or predict market or economic developments is inherently limited. We believe that the expectations reflected or implied by any forward-looking statements are based on reasonable assumptions, but are not guarantees of performance or results. And our actual results and performance could differ materially from those set forth in our forward-looking statements. Hancock-Whitney undertakes no obligation to update or revise any forward-looking statements, and you are cautioned not to place undue reliance on such forward-looking statements. Some of the remarks contain non-GAAP financial measures. you can find reconciliations to the most comparable GAAP measures in our earnings release and financial tables. The presentation slides included in our 8K are also posted with the conference call webcast link on the Investor Relations website. We will reference some of these slides in today's call. Participating in today's call are John Harriston, President and CEO, Mike Ackery, CFO, and Chris Zaluka, Chief Credit Officer. I will now turn the call over to John Harriston.

Thanks everyone for joining us this afternoon. Third quarter's results reflect continued growth in capital ratios, fully funding loan growth with core deposit growth, a slowing remix of DDAs, and early but welcome signs of VIM stabilization due to higher loan yields and lower growth in deposit costs. As anticipated, loan growth again moderated this quarter. Total loans were up $194 million, driven mostly by project draws in both multifamily real estate and mortgage. As noted on slide seven, the net growth in both CRE and mortgage relates primarily to migration of in-process construction projects as they are completed. Demand has continued to slow as higher rates and insurance costs have changed client behavior. Today, we are seeing both commercial and consumers either choose to forego large purchases or use existing funds in lieu of borrowing. Our own internal appetite also continues to moderate as we remain focused on full-service relationships, disciplined pricing, and selective appetite in some sectors. Our path to loan growth will be determined by our ability to fund growth with core deposits and lending within our risk appetite. The credit quality of our loan portfolio remains solid and we continue to be well-reserved. Criticized commercial and non-accrual loans remain at low levels, and in fact, criticized ratios are again at a historical low. Despite the one large idiosyncratic charge-off disclosed during the quarter, we have seen no significant or systemic weakening in any sector of the portfolio. That said, we are mindful of the impact of higher-for-longer rates, inflationary costs, and the regulatory environment thus are proactive in monitoring for any developing risks. Core client deposits grew this quarter, and we continue to maintain our diversified deposit base. Total deposits were up $277 million, with the remix continuing from DDA to time deposits and other interest-bearing deposit products. The DDA remix did, however, show signs of slowing this quarter, and we ended the quarter with 38% of our deposits in DDAs at the top end of the range contemplated in the mid-quarter update. Promotional CD and interest-bearing money market pricing contributed to the remix this quarter. Our clients do remain rate sensitive, and we don't expect that we'll significantly moderate until rates stabilize or start to decline. When looking at our balance sheet, our guidance for both loans and deposits is unchanged, and we see the trends from Q3 continuing through year-end. A quick note on capital, our TCE was down this quarter to 7.34% due to impacts of higher long-term rates on AOCI. However, we are pleased to report that our Tier 1 ratio ended the quarter above 10% and our CET1 ratio was above 12%. As a reminder, we have no preferred stock shares in our capital stack. As we reflect on the year so far and look into the fourth quarter, we believe our strong deposit base will continue to help support our funding needs. We maintain a robust ACL and continue to build capital, which we believe will help us manage successfully through this cycle. October marks Founders Month, and we look forward to continuing our legacy of commitment and service to the people and communities we operate in, as we have for over 124 years. Before turning the call over to Mike, I would also like to take a moment to honor the life of George Schlobel, who joined the organization in the mailroom as a high school student ultimately rising to chairman and chief executive officer during his long 52-year career. George passed away unexpectedly and peacefully on October the 6th, only weeks after giving interviews to various trade organizations on the history and future of banking. George was a young and particularly vigorous 83 in his passing, and we will dearly miss our longtime friend and colleague. With that, I'll invite Mike to add additional comments.