Hancock Whitney Corporation (NASDAQ:HWC) Q3 2020 Earnings Conference Call - Final Transcript

Oct 20, 2020 • 05:00 pm ET

Previous

Hancock Whitney Corporation (NASDAQ:HWC) Q3 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

Thank you. [Operator Instructions] Our first question comes from Michael Rose with Raymond James. Your line is now open.

Analyst
Michael Rose

Hey, good afternoon guys.

Executive
Christopher S. Ziluca

Hey, Michael.

Analyst
Michael Rose

Wanted to -- hey, how are you? Wanted to start with the increase in criticized commercial loans. This quarter, I assume some of it is migration from some of the at-risk exposures, if we could get some color there, and then if you could give some color on some of the healthcare credits that were charged off this quarter that would be great. Thanks.

Executive
John M. Hairston

Okay, sure, Chris you want to talk about that?

Executive
Christopher S. Ziluca

Sure. Yes, I mean as I indicated in some prior discussions, we really didn't anticipate a lot of migration during the first couple of quarters. But as we kind of got our arms around some of the specific account level issues, we knew that there was going to be some migration starting to show in Q3. So you're right, a portion -- reasonable portion of the migration this quarter was our ability to better assess the facts and circumstances of some of the credits in the sector under focus, as well as more broadly and so we did see some migration due to COVID.

Executive
John M. Hairston

Michael this is John, on the healthcare question, the healthcare charge was almost all one credit that was not specifically healthcare credit. There was a very large percentage of now all of its income from healthcare offices and while they were shut down, it was somewhat egregiously affected. So we opted also operation to the charge that credit down.

Analyst
Michael Rose

Somewhat of a real estate credit then.

Executive
John M. Hairston

No, no services credit.

Analyst
Michael Rose

Service. Okay, got it. And then maybe just a follow-up for Mike, if you can give us the dollar amounts that you would expect would come out of the run rate for fees and expenses for some of the elevated items this quarter that would be appreciated. Just from a run rate perspective? Thanks.

Executive
Michael M. Achary

Michael, I'm not sure I heard the last part of the question.

Analyst
Michael Rose

Just what comes out of the run rate for the elevated expenses this quarter and then, you know, relate -- what will come out for the severance cost and stuff like that for the closing of the offices? Thanks.

Executive
Michael M. Achary

Yes, so for the third quarter in terms of any one-time costs, they really did offset one another. So the severance that we had, as well as some of the costs related to the closure of some of the facilities we called out was really offset by the reduction in incentive comp and a few other items that were really, kind of, left over from the MSL acquisition. So all of those items actually did offset one another, such that the run rate for the third quarter going forward, really was there is a number that we reported.

Now in the fourth quarter we do expect to continue to execute on the same kinds of our cost initiatives -- cost-saving initiatives that we did