Hancock Whitney in Gulfport, Miss., can finally see an end to credit issues tied to energy exposure.
The $27.9 billion-asset company said in a press release Tuesday that it has absorbed 83% of the roughly $95 million in net charge-offs it expects to take place as a result of its exposure to energy credits.
Hancock also disclosed that its energy portfolio shrank by 6.5% from March 31, totaling $985 million at the end of the second quarter. Energy credits make up 5.1% of total loans.
The energy portfolio is 20% smaller than it was a year earlier.
While rising oil prices have also helped, Hancock said longer-term stability is critical to helping it resolve many remaining energy credits, particularly those tied to support services.
Overall, Hancock’s quarterly profit increased by 36% from a year earlier to $71.2 million, or 82 cents a share.
Net interest income rose by 6% to $211.5 million. Total loans increased by 5% to $19.4 billion, while the net interest margin narrowed by 3 basis points to 3.40%. Total deposits rose by 4% to $22.2 billion.
The loan-loss provision decreased by 41% to $8.9 million.
Noninterest income increased by 2% to $68.8 million.
Noninterest expense were relatively flat at $184.4 million despite $9.8 million in costs tied to rebranding and $1.5 million in expenses associated with the purchase of Capital One Financial’s trust and asset business.
Hancock’s efficiency improved to 57.4% from 60.6% a year earlier.