![]() ![]() During the first quarter, we originated over $800 million in new PPP loans with a substantially lower pace of forgiveness than expected. You may note on Slide seven that net loan growth is now differentiating across the footprint with the Eastern franchise actually showing growth, even as our central area, primarily New Orleans, remains under pressure, but thankfully, green shoots are appearing even there. Residential mortgage payoffs actually increased, thanks to a strong surge in March 2021 secondary mortgage transactions, line utilization slowed amid normal payoffs and elevated paydowns, coupled with slower levels of loan production, altogether led to declines in some of our regions. Core loans declined $465 million linked quarter as indirect loans continue to run-off with no new production plan. Despite this new level of optimism, loan growth remains limited, net of PPP. And we expect similar or better quarterly provision levels as we move through 2021 based on what we know now, our ACL remains strong at over 2%. Overall, our provision for credit losses was a negative $4.9 million as a result. Net of that one loss NCOs were a well-controlled $4 million. We did report $18 million in net charge-offs, mostly from one long-term energy credit. That outlook, coupled with declines in criticized and nonperforming loans of 11% and 20%, respectively, and a 30% drop in loans making up our sectors under focus on Slide 10 allowed us to release a modest amount or $23 million of loan loss reserves in the quarter. See slide eight in our investor deck for information specific to each of our major regions. During the quarter, we began to see signs of cautious optimism across our footprint as vaccinations ramped up, markets began reopening, restrictions were decreased or eliminated, and businesses were allowed to increase capacity. Earnings for the first quarter of the year are $107 million or $1.21, up almost $4 million or $0.04 linked quarter. And as such, 2021 has started off on an encouraging note. Today's operating environment is headed in a decidedly more positive direction compared to the end of last year. ![]() Thank you, Trisha, and good afternoon, everyone. Hairston - President and Chief Executive Officer ![]() I will now turn the call over to John Hairston. Participating in today's call are John Hairston, President and CEO Mike Achary, CFO and Chris Ziluca, Chief Credit Officer. We will reference some of these slides in today's call. The presentations are included in our 8-K are also posted with the conference call webcast link on the Investor Relations website. You can find reconciliations to the most comparable GAAP measures in our earnings release and financial tables. In addition, some of the remarks this afternoon may contain non-GAAP financial measures. 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. 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's ability to accurately project results or predict the effects of future plans or strategies or predict market or economic development is inherently limited. 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. 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. During today's call, we may make forward-looking statements. ![]()
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