Q2 2021 Hancock Whitney Corp Earnings Call
Good day, ladies and gentlemen, and welcome to the Hancock Whitney Corporation's second quarter 2021 earnings Conference call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time as a reminder of this call maybe recorded I would now like to turn the call over to your host for today's conference Trisha Carlson.
The 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.
The Hancock whitney's ability to accurately project the results or predict the effects of the 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.
The 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 8-K 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 on today's call are John Harrington, President and CEO, Mike <unk>, CFO and Chris the loop of Chief Credit Officer.
I will now turn the call over to John Harrington.
Good afternoon, everyone and thank you for joining us I'm very pleased to report Hancock Whitney's continuation of improving performance second quarter operating results either met or exceeded expectations for nearly every category for the quarter with linked quarter P. P. N are up $6 million or 4% growth in core loans was well above expectations and guidance.
Bankers and support teams returned fully to the office in the first quarter and significantly outperformed our expected pull through rate on our robust pipeline. The most categories and pay downs were well below our run rate for the pandemic I do want to recognize and thank our entire team of associates for outperforming in nearly every category while simultaneously working towards the right sizing.
Expense base.
The credit metrics improved once again this quarter facilitating another modest reserve release of $28 million and a negative provision of $17 million sticky deposits in P. P. P. Forgiveness combined to result in elevated levels of excess liquidity on our balance sheet, which in turn compressed on the I'm. Once again, however, while we reported the climb the overall ratio.
Note that thoughtful management of the balance sheet and minimize the impact on net interest income producing of stable run rate linked quarter.
As our markets continue to reopen and activity levels pick up we're seeing growth in COVID-19 impacted lines of business within fee income Bank card and ATM fees are up linked quarter buoyed by the revival of leisure and family Tourism continued success with our purchase card initiative I helpful escalation of merchant transaction volume in our merchant services and Treasury.
Solutions teams are winning a number of new clients deposit service charges in wealth management revenue also performed well in the quarter as we've discussed with the market previously 2021 brought into focus the importance of reassessing, how we could meet the challenges of the past year presented to our company and the whole banking industry. During the second quarter, we completed our.
We announced the phased in plan to streamline and strengthen our operational framework of according to our clients' changing needs and habits and recovering economy. The initiatives. We undertook included of voluntary early retirement package for 647 of our associates of which 260 accepted at the consolidation of our announcements of consolidated 38.5.
Actual centers across our footprint the closure of 2 trust officers in the northeast and a reduction in force 3 of the phase out of an additional 200 positions across the organization.
With the right sizing plan complete we will continue reinvesting a portion of our harvest of expenses back into revenue production for the benefit of future years. The net non operating expenses associated with the entire plan are included in the second quarter's results and totaled 42 million or <unk> 37 per share slide 26 and our.
Resin taishan deck for details so the takeaways from the commentary and slides in the Investor day should be the expense rationalization plan is complete we've absorbed materially all of the non operating expenses and the path is clear to achieving the for Qs 21 run rate and our guidance for at this point, we are moving forward with renewed energy focus and of salt.
The capital position, we've had a good start to 2021, but are keenly focused on navigating the remaining pandemic uncertainty while simultaneously dedicated to improving performance and value I will now turn over the call to Mike for further comments.
Thanks, John Good afternoon, everyone results for the second quarter were very solid net income totaled 89 million or a dollar per share as John noted. The reported results included 42 million for 37 cents per share of net non operating items.
Excluding these items EPS would have been a dollar of 37 with operating earnings of over 121 million.
So just a few comments on the major drivers of our balance sheet and NIM.
Total loans declined $516 million is just over 1 billion P. P. D loans were forgiven in the quarter.
Partially offsetting the decline was slightly over 100 million of new P. P. P funding and 412 million and organic loan growth.
Core loan growth of its 1 of the big headlines for US this quarter and we were happy to see the results of our bankers efforts and increase in the pull through rate for our pipeline led to growth across our footprint, both regionally and by the specialty lives as you can see from the chart on slide 6 in our earnings debt growth was.
Especially evident in our markets outside of greater New Orleans, as well as in equipment finance and health care.
The step down in payoffs compared the last quarter and of stabilization and line utilization. After several quarters of declines also contributed to the quarter's growth.
Going forward our goal is to build on this progress on deploy as much of our excess liquidity as possible into loans, while recognizing headwinds still exist from amortizing only portfolios like indirect and energy as well as elevated levels of residential mortgage payoffs.
But the P. P. P process now close and into forgiveness going forward. The overall impact of the P. P. P loans on our balance sheet and earnings of Wayne from this point.
Slide 7 in the earnings deck expands on those points.
On the liability side of the balance sheet, our deposit levels remained resilient and have continued to increase.
The elevated deposit levels in P. P. P forgiveness are combining to sustain and increase our levels of excess liquidity, which led to continued NIM compression.
We are guiding to additional contraction in the second half of 'twenty, 1 versus what we said last quarter that updated guidance really stems from the current levels of excess liquidity continuing to build through the end of this year, mostly from P. T P forgiveness.
We are expecting an additional 1.1 billion to be forgiven by year end.
It also slower deposit outflows and in fact, we've been the leap deposits will be up in the third quarter, and then flat as we move into the fourth quarter.
Another factor around the NIM guidance stems from the relative size of our bond portfolio and the level of current reinvestment yields.
At nearly 25 per cent of earning assets and with reinvestment yields recently trending down I think has brought us to the point where for now we're likely to not deploy excess liquidity into bonds that.
For the potential for higher rates down the road of.
So of consideration.
No major changes in the guide for what we're expecting for loan growth in the second half of 'twenty 1.
We are expecting to leverage our second quarter success in growing loans and believe we can further grow our loan book between 600, and 800 million over the second half of this year.
So combining all of those factors, we think the NIM could narrow I know the 4 basis points or so in the third quarter and then possibly of similar level in the fourth quarter.
However, it's our NII guidance indicates we do expect NII to trend flat for the next few quarters.
Before I turn the call back to John I'd like to point out of few of the slides in the deck with the recent focus on interest rate risk and assets sensitivity in light of expectations for of rising rates in the future. We added some additional information on slides 15, and 29 related to our hedge positions. So I.
15 also includes our usual disclosures on our variable rate loan portfolio and floors.
And finally, you'll see our updated guidance on slide 20 as noted the majority of our forward guidance is unchanged with the exception of debt.
With that I'll turn the call back to John.
Thanks, Mike, Let's open the call for questions.
We will now begin the question and answer session to ask the question you May Press Star then 1 on your Touchtone phone.
Youre using a speakerphone please pick up your handset before pressing the keys for us.
All of your question. Please press Star then 2 net this time, we will pause momentarily to assemble the roster.
And my first question today will come from Michael Rose with Raymond James. Please go ahead.
Hey, good afternoon. Thanks for taking my questions Hey, how are you just wanted to get some color on the loan growth and you know if you can speak to kind of where that's coming from if I look at the balances it looks like you had.
Some decent construction growth this quarter. So that's part of it but if I back out the Pvp. It also looks like.
C&I is not doing a terribly bad either I know you talked about utilization rates look like they were up slightly.
In the quarter, which is a good sign can you just give us.
Some color of some greater color on you know where the expectation for $4 million to $500 million on the back half is coming from thanks.
Sure. Michael This is John I'll start and you'd actually started out of pretty good lift yourself on the of the outperformance generally came from a number of different directions somewhat lucky sided.
On the anticipated tail winds were really better than we expected and anticipated headwinds were little less challenging than we expected. So the result is when you measure it together the of the outsized upside so if I start with the with Paydowns on the mill work our way into the the more exciting part of they were quite muted compared to both of our expectation.
And really the run rate for the pandemic. We did have a few of paydowns that drifted from the expected late second quarter end of Q3, and that's all cooked into the near term guidance for next quarter. So it's a little early to project of a permanent reduction of pay downs across the remainder of the year, just given the the up and down.
So much significant volatility still left in the recovery.
The last few months, we've seen an improvement in the the lumpiness of the pay downs, so moving on to the <unk>. The other part of the other better news.
There were several specific areas of outperformance that maybe interesting first of the pipeline itself really began to grow more robust as the quarter progressed.
On the pull through rate you know the percentage of the pipe out of actually move for the application to <unk>.
Certified application to closings.
It was much much stronger than we normally have so the pull through rate was.
Today as we've ever seen it I mean as I mentioned in the prepared remarks excuse me as I mentioned the prepared remarks, we trim it.
On back of the fact that our entire team was back on the office in March of about 80% or so by last August and so we really began the quarter hitting on all 8 cylinders and with the full complement of team members focused on on a moving quickly through the app process getting all of the necessary requirements of getting the closing that pull through.
It really was remarkably strong so that was certainly very helpful. Another area of outperformance of Michael you mentioned was in C&I and the equipment financing portion of C&I of about half the net growth.
What's from a precipitous increase and our clients finally getting gear that they had had on order and supply chain was simply in the way of.
Of the gear made at the end and we get those deals closed and that was about half the capital markets about half in market existing C&I clients in your C&I clients. So the supply chain roadblocks softening.
Certainly very very helpful.
Health care also stabilized and we've seen the growth numbers there on the waterfall chart in the day.
We're really good and extend exclusively in very high quality deals and the.
And line utilization as you mentioned are actually firmed up about a quarter ahead of when we expected that was part of the of the difference and will be expected versus the the good news delivered is not all of it has stabilized but it actually.
Ticked up just a bit and that was about a quarter earlier.
Really debt than we anticipated Mike mentioned earlier in his comments that we grew across the footprint with the exception of NOLA, but notably in that the central Super region. As we have it on the loan growth waterfall, but what's really different about this quarter and the wallets wasn't essentially was flat I think the actual number was.
Down call it a push so after several quarters of quarter over quarter continuous contraction and the level of a book. It finally firmed up and the stable so without that contraction. It wasn't nearly as big of a contract as we've had the deal we are through the really the entire pandemic.
And then finally I think I mentioned on the call of maybe on the QA last quarter that we began to see some green shoots forming of consumer lending and we've invested pretty heavily in marketing.
Consumer loans and the green shoots maybe flowered a bit early and in June we had as good or better of month, both on applications in the closed non HELOC consumer lending business as we've had even before the pandemic of normal James So.
Why you don't see a whole lot of <unk>.
Big numbers out of consumer the fact that it's approaching cover in the home equity runoff for mortgage refi is sort of the big point, you'll really see that much on the waterfall, but it was actually quite helpful. So it's tempting Michael the sound very bullish on growth, but still.
Still early on.
You can see from the volatility just last week and this week, it's very difficult to predict how.
How much money will come into acquiring clients, which creates lumpiness and run off and the and then the supply chain improvement.
It's happening if that continues and maybe it gets even better that will certainly be of tailwind and that's also a tailwind for see indeed because of 1 of the biggest holdups that we experienced in construction lending is the fact that it just takes time to get gear and so as that improves that should be a tailwind there so bad.
That's pretty much the run down on our on the whole question did I cover everything you wanted Michael of weather.
No you are who you covered a lot there and I appreciate all the other the color just as my follow up it looks like you guys didnt repurchase any stock in the quarter, you're trading about 1 for 1 point for times tangible at this point you know T C ease up.
With the stock trading where it is I mean, why not use it and would you expect to be a little bit more aggressive here. You are you waiting to hit a certain capital level, whether it's 8% yeah. The.
TCE or whatever the threshold of baby. Thanks.
Yeah. Michael This is Mike So just a couple of thoughts about that so certainly in the past the past quarter, we said that we consider things like buybacks or even looking at the dividend in the second half of the year and we will absolutely do that nothing to report in terms of any changes in what will do of how we'll look at.
But certainly that's something that the consideration for the next quarter or 2 the.
The absolutely get those points.
Understood. Thanks for taking my questions.
Thanks, a lot.
And our next question will come from Brett Robinson with all of the group. Please go ahead.
Hey, good morning, good morning, good afternoon, everyone.
Good afternoon wanted.
I wanted to ask about the margin and the guidance going forward.
A couple of key things 1 is thinking.
Thinking about the expectations for <unk>.
For <unk> and for Q being down due to continued excess liquidity.
Can you just walk me through what your expectations. You indicated you wanted to do much with the liquidity currently but just how that might play out over.
Over the next year you know obviously you 1 of deployed in loans, but just thinking about you know 1 of the liquidity. What you end up doing with it is as time progresses and on to just it seems like the margin you know extra liquidity noise of has bottomed here. So I was also hoping to get maybe some thoughts on origination rates versus the current portfolio the yield.
Sure Brad So there's a couple of thoughts of begin with probably your last question first.
So over the course of the second quarter as John indicated we had an absolutely fantastic levels of the of new production it was up.
Some 40 to 45 per cent now of the yields at that new production came on the loan portfolio was down about 25 basis points or so to around 3.3%. So certainly that's a factor and something that was a bit of a headwind certainly as we looked at the.
The NIM contraction that we had this quarter the yield on our bond portfolio was also down debt was down about 9 basis points.
Lee.
For the gyrations of of rates during the quarter, and the 10 year kind of up and down and back down.
The reinvestment yield that were available to us in the bond portfolio about 134 basis points. So again that was a bit of a headwind as well and then finally as we've mentioned on this call and in last quarter, just the abundance of excess liquidity that flow to onto our balance sheet.
And really not much in the way of viable options to put that excess liquidity and the absence of any meaningful loan growth now certainly we got from meaningful loan growth.
This quarter a lot of that growth was weighted a little bit towards the back half of the quarter versus the front half. So so that certainly speaks for.
The contraction that we're expecting in for future quarters to the certainly less than we've experienced the last couple of quarters.
The kind of the final point I would mention is just in terms of how we kind of manage the balance sheet and look at things like the level that we have on our bond portfolio versus cash that we kind of keep on the sidelines of.
The bond portfolio was pretty big.
<unk> currently has about 25 per cent or several of our earning assets and that really at least for new house of buyers begets, we'd like the bond portfolio to get so certainly for the next quarter or so.
We're looking at that kind of paring back.
Inflows into the bond portfolio. So the bond portfolio is likely to come down a little bit not tremendous amount.
But just a bit from the the current levels that exist right now now that are resolved and more of excess liquidity kind of piling up at the fed.
And certainly we look to loan growth picking up in the second half of the year and especially as we go into 'twenty 2.2 to deploy net liquidity into.
So hopefully that was helpful.
Yeah that was a that was very helpful.
I guess the other thing I was curious about was just thinking about the expense guidance and you know with the <unk> 21 expense level of 187 million being the run rate for for 'twenty, 2 and you mentioned in the prepared comments on reinvesting for some growth.
Going forward.
I'm just curious obviously you've done a great job managing the expense levels down you know the past year, you know from here would it be fair to assume that there wasn't the at least based on inflationary pressure on expenses scale kind of post what you've accomplished this year, how should we think about the go forward rate.
Yeah, I think so certainly with the with the all of the news and all of the discussion lately around the inflation that that's certainly something I think that we're going to have to contend with in future quarters.
And you know who knows how transitory bad maybe or not.
But that's certainly something that we've kind of built into all of our guidance on a go forward basis. So on so we obviously have announced a a good deal of the efficiency measures during the quarter John condo.
Talk about those in his prepared comments and really on the go forward basis.
The vast majority of those things are really in the rearview mirror doesn't mean that we're knocking on continue to work on our cost initiatives and continuing to become more efficient I think some examples will be things related to strict for strategic procurement that will continue to work on.
But again the objective with the cost cutting efforts that we've gone through really is twofold first and foremost it's become more efficient and more profitable as a company and then secondly, it's to create room for that we can reinvest back in the company as we've kind of talked about on the pass.
Okay, great. Thanks for all the color and nice to see the loan growth on <unk>.
No.
Okay. Thank you. Thank you for the question.
And our next question will come from Brad Millsaps with Piper Sandler. Please go ahead.
Hey, good evening guys.
Hey, Brad.
Mike I think I heard you correctly that the.
You thought that deposit growth like kind of level off from here.
Kind of curious kind of what kind of gives you that assurance of Ardrossan.
Specific things out there you guys see running off down the road, it's just really difficult to predict.
The deposit side of equation.
That sort of leads into the all the liquidity discussion.
Yes, so we actually thought that deposit growth last quarter and going forward, what would've probably leveled off a bit more than it actually did so in the second quarter, we actually had about $63 million of positive deposit growth.
And what we're expecting for the third quarter is as much as 150 million or so and then after that kind of level of law. So that's kind of on we're looking at it at this point, but certainly there of an awful lot of variables to consider.
You know as we think about things like deposits.
And then you provided additional color on some of the cash flow hedges on on page 29, just kind of curious are you guys kind of contemplating maybe doing something they're closing that out or is that just you just wanted to off the more disclosure just kind of curious kind of how you're how you're thinking about that at this point.
And we've always kind of disclose the the cash flow hedges and the new disclosure. This quarter was the fair value hedges that we have on the bonds right now.
And I think the objective day it was really just to help folks understand.
Some of the things that we're doing to potentially increase our asset sensitivity down the down the road a little bit of NEC Williams. The objective of the fair value hedges that we have on the bond portfolio as.
As far as the cash flow hedges.
I think it's probably more likely than not debt will look at terminating some part of those you know over the coming quarter or so.
And when that happens of course, we're able to kind of lock in those gains and amortize them back into earnings. So so that's something again 2 of the coffee on the lookout for.
Okay.
Great very helpful. Thank you guys nice quarter.
You bet. Thank you.
And our next question will come from Jennifer Denver with true Securities. Please go.
Okay.
Thank you.
Good evening.
John on mortgage lending can you just talk about the growth in fees this quarter and give some thoughts on on your outlook there.
The growth in what I cut out a little bit the growth of fees and fees on mortgage.
It's more of a chip.
Yes. Thank you for the question Jennifer the.
We expected the volumes for mortgage too to drop a bit and in Q2 of them again.
There was of processing change to where we incur.
A bit of a 1 time benefit in Q2 that caused the pay increase to be actually on the grain versus the Rad overall, so all things being equal we think that's probably the last green quarter of us.
The rate environment, so hard to predict.
Who would have thought we'd see 30 at the rates. We're at today, just a month ago. So while we think that's short term in what we'll see as is.
As a falloff in mortgage activity for Q3 that Q2 number was really driven by the 1 time money. So all in all of the would've been a little bit less than last quarter.
The answer your question.
Yeah Yeah.
Can you just talk about what you're thinking about in terms of of loan loss for leases in future quarters and credit.
The cobalt preserve of approach of seats on day 1 level.
You want to tackle that 1 of them I don't know debt tenor for right now.
Certainly any intend or plan to kind of get back to the peaceful day 1 of the day 2 levels and just as a reminder that was around on.
The 28 basis points on for the 30 basis points or so of the did include the energy book.
On the guidance that we've given kind of on the go forward basis is this notion of continuing to expect but we kind of referred to as modest reserve releases and so certainly that could be or they could mean that we would have reserve releases kind of a day.
Neighborhood, maybe of what we've done when we've done the last couple of quarters. So on the first quarter that was around $23 million in the second quarter of just over $27 million. So kind of on a go forward basis do you think about that level of reserve release that debt probably is a good proxy around what to expect on a go forward.
Basis.
And then certainly our.
Our charge offs are.
We had $10.5 million this quarter, we think that could trend down just a bad maybe in future quarters.
The provision will be kind of of herself from warmer between those 2.
Thanks, so much.
Okay. Thanks for the questions.
And our next question will come from Catherine Mealor with <unk>. Please go ahead.
Thanks, Tom I, just kind of follow up on your guidance. It looks like we're seeing service charges remain fairly low, but you're seeing kind of a rebound in bank card and ATM fees. So just any kind of thoughts and guidance on how you're thinking about those 2 line items as we get into a more normalized.
The man.
Yeah, I'll start and thanks for the question the.
This is John.
And in the second quarter, we did have a couple of unusual items.
Related to I mentioned, the processing benefit, which the secondary from a little less than flat to the little up.
And then it will trail down and it's just hard to predict the activity, but you know our what's cooked into our guidance is the drop off from from <unk>.
The deposit service charges did indeed finally stabilize.
As the liquidity levels in the accounts that typically generate deposit charges.
<unk> began to work their way down a bit so that number's probably stable to up.
And then.
Trust had a really good quarter, we typically enjoy the benefit of the of tax prep Pes in Q2, but so that may drop down a little bit in the the.
The third quarter. So there's lots of puts and takes Katherine in in that number then kind of roll together for the guidance, but the heavy movers really are the other 1 time action going away offset by continuing good news and card related revenue and remember we keep merchant revenue on sat car. So when we say card for talking about.
Commercial purchase card, which has been an extremely bright spot and getting brighter.
Consumer credit and ATM, which actually was unusually high for the second quarter I think of as people with drew some of the proceeds from the various stimulus programs and.
And then of wealth overall, we think is going on performed pretty well. So the big news take away. The 1 time charges with a little bit of of.
The ramp down in mortgage and you kind of arrive at the the guidance Mike you want on the only thing I would add to that John is.
The guidance for the third quarter is this notion of maybe down 3 to 5 million I would suggest that it's more likely than not that we would be kind of on the lower end of that range, so potentially down the round 3 and it really points to the absence of the 2 items of John called out.
That really kind of volume the.
The second quarter numbers, so the the mortgage key items and then the other seasonal tax fees. We typically book in the second quarter related the trust the Delta probably.
On a go forward basis on the wildcard for people is going to be the specialty income had very little of debt on a net basis in the second quarter, So things like boldly and derivative fee valuations and syndication fees are always pretty hard to forecast or project. So to the extent that we have.
Any kind of meaningful activity on those line items.
We could outperform the guidance.
Got it that's very helpful. And then just kind of thinking big picture.
Kevin and really help for near term guidance, what do you think you'll return to giving DSO Kohl's and thinking more kind of in terms of the longer term profitability outlook.
I think we'll do that in <unk> and 'twenty 2 Jim.
Catherine season.
So look for that look for a guidance to probably expand a little bit and go back to this notion of mid term guidance.
Which for us because of our CEO CSO is on a go forward basis.
I understand the environment very uncertain out there that's very helpful. All right great. Thank you. Congrats you congrats on the improved credit.
You bet on CASM.
And our next question will come from Matt Olney with Stephens. Please go ahead.
Great. Thanks for taking my question.
Want to go back to Catherine's question around consumer fees and I'm curious if you think the bank's pricing of its products and specifically the service charges overdraft charges and other miscellaneous fees.
Is the pricing of those products is it appropriate at this point or is this something you consider modifying and I guess the question comes from more of a political standpoint, I think we've seen the administration.
Some noise around consumer fees over the last few weeks of would love to hear of any thoughts you have about the the banks pricing on these products for the consumer.
Sure. It's a good question thanks for asking it.
When when overdraft NSF fees and I presume, that's what you're really referring to.
Began to fall in the regulatory scrutiny of number of years ago, we assured debt whatever our practices were well well inside of the FDIC guidance. You know as you know there's really no rule, the just guidance and we fall within 2 well within depending on which part of the guidance is scrutinized.
All of those pricing and it's not just pricing, it's really processing order its habit since its maximum the et cetera. So.
We know that we're well within all of that guidance already so.
So certainly our current posture would simply be the pay attention to any evolving regulatory guidance or changes.
And as it develops.
Well certainly adhere to it.
Think of our regulators I've heard a lot of information from a lot of different constituencies about this subject matter of through the years.
And they work really hard I think the find a balance that's prudent between protecting consumers from what could be overly aggressive for practices.
Not in this institution, but elsewhere.
While simultaneously assuring debt overdraft practices are available to clients, who actually need them and so.
They'll do a continuing good job of finding what we think the appropriate balance is and then we will typically remain conservative and well within whatever that guidance may be so I guess I'm, saying all of that to say based on the guidance. That's out there now how we're handling that business is.
Better than appropriate.
If the guidance changes then, we'll we'll manage to whatever that change yes.
Okay that's perfect.
Thank you for that and then I guess switching gears.
Mike just a clarification I think you mentioned, what the day, 1 allowance ratio would've been ex energy, but I didn't I didn't catch the whole thing.
I didn't give the ex energy point, Matt simply said is at the 128 day too for US included the energy book that we largely so the second quarter of last year.
Got it okay.
Okay perfect. Thank you guys.
Got it.
And our next question will come from Kevin Fitzsimmons with D. A Davidson. Please go ahead.
Hey, good afternoon, everyone.
Hi, Kevin.
Just wanted to follow up I joined late Mike I believe you answered the question about buybacks before and I don't think you guys had said you were looking at buybacks for the SEC.
Second quarter, but that it was the possibility for second half is that is that the outlook or is it something different.
No. That's that's accurate cabin and we had said.
Last quarter that it would be something that we would certainly address and look at in the second half of this year and certainly Thats 1 of our plans all of the day, but the.
There's nothing really new to announce today certainly.
Okay.
But there isn't there is is the is there an authorization in place for now.
Yes.
You put a new authorization in place last quarter and that was 1 of the things that we announced the intra quarter through our 8-K.
Okay.
And then just a quick follow up and I apologize. If you all went over this already are there any notable.
Datapoints or wins in terms of things being scheduled for later this year early next year in Metro New Orleans from of tourism or hospitality standpoint that.
Our or worth noting here.
Yeah. Thanks, Thanks for asking the question.
It is a bright spot in our story and you may have missed the window, we're talking about loan growth we share that.
Central Super range, and that's kind of dominated by the New Orleans balance sheet in this quarter for the first quarter. Since the pandemic began it was of push and a lot of that is because of all of the renewed sentiment and a good bit of.
Of a doozy azzam, that's happening inside of knowing now as tourism returns. So we certainly can't speak for the year elected officials or what have you, but the the share commentary from the statewide folks around our region and this includes the Louisiana would suggest very little appetite for for pulling in their horns. So.
I think what we would expect to see as a continuing improvement in both the leisure tourism, which has been enormously successful really for several months beginning in March and New Orleans.
With the return of conventions and festivals the.
The first couple of conventions in Q3 already happened and the attendant Detroit was a was very positive and the number of conventions debt.
We're not canceled from back last year when people are in the business of canceling conventions, they all seem to be having a pretty good attendance.
You know I think its something better than a green shoot.
And the the festivals as of now.
Appear to be on on and I think we have jazz Fest, which is not typically a big Big April.
Show that coincides with the golf shot banking conference, which led to.
2 of October it's happening in the lineup was announced a couple of weeks ago.
Looks pretty good the.
The French quarter Festival is happening a lot of the food festivals are getting scheduled so.
It really is sort of the last of our markets to look more like it's fully recovering for the hospitality the.
The beach communities really didnt have to pay them at the economy last summer they weren't they were they were moving quickly.
Before there was a vaccination use but new Orleans is certainly key.
Moving to improve right now so we're pretty enthusiastic about it.
Scheduled so quick yeah, so Kevin slide 8 net.
Earnings deck is an updated version of the slides, we had last quarter and that's simply by major region kind of a.
Listing of the the major hospitality related events that had great couple.
A couple of quarters and had the central region in the middle of that is primarily New Orleans.
That's great. Okay. Thanks, Mike Thanks, John.
You bet thanks for the questions.
And this will conclude our question and answer session I'd like to turn the conference back over to John Harrison for any closing remarks.
Yes, Thanks co for moderating today, and thanks to everyone for your interest in Hancock Whitney stay safe and we'll see you soon.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.
Okay.
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