Hancock Whitney Corporation (NASDAQ:HWC) today announced its financial results for the third quarter of 2021. Net income for the third quarter of 2021 was $129.6 million, or $1.46 per diluted common share (EPS), compared to $88.7 million, or $1.00 per diluted common share, in the second quarter of 2021. The company reported net income for the third quarter of 2020 of $79.4 million, or $0.90 per diluted common share. The third quarter of 2021 included ($1.4) million, or ($0.01) per share after-tax, of net nonoperating income items. These items included Hurricane Ida expenses of $5.1 million and severance reversal ($1.9) million, offset by the gain of $4.6 million from the sale of the remaining Hancock Horizon Funds. The second quarter of 2021 included $42.2 million, or $0.37 per share after-tax, of net nonoperating items. The items include the previously announced branch closures (20), subordinated debt redemption and Voluntary Early Retirement Program (VERP), plus the cost associated with an additional 18 branch closures and a 200-position reduction in force.

Third Quarter 2021 Highlights

Pre-provision net revenue (PPNR) totaled $134.8 million, down $2.4 million, or 2%, linked-quarter
Core loan growth of $219.7 million, offset by the impact of $482.2 million in PPP loan forgiveness leading to an overall decline in total loans of $262.5 million
Deposits decreased $65.0 million linked-quarter; noninterest-bearing demand deposits increased $247.0 million
$28.8 million reserve release and $1.8 million in net charge-offs led to a negative provision for credit losses of $27.0 million
ACL coverage remained strong at 1.92% (2.00% excluding PPP loans)
Both nonperforming loans and criticized commercial loans declined 27% and 11%, respectively, linked-quarter
The continued impact of excess liquidity, driven mainly by PPP loan forgiveness, led to a 2 bps compression in reported NIM
TCE ratio 7.85%, up 15 bps

"We are pleased to report another quarter of solid results, despite the impacts of Hurricane Ida and the COVID-19 Delta surge," said John M. Hairston, President and CEO. "Our balance sheet remained strong as core loan growth momentum continued and DDA deposits increased during the quarter. Despite a slight compression in the NIM, net interest income was steady in the quarter, as was operating expense. Fees were lower linked-quarter, mainly the result of secondary mortgage volume reductions, as well as the result of waivers and activity related to Hurricane Ida disruption. Our asset quality metrics continue to improve and are now among the best in the mid-cap group. We do not anticipate any significant credit impact post-hurricane. Capital is strong and we expect to achieve an 8% TCE, or better, by year-end 2021. We view third quarter of 2021 and near term guidance as continued momentum toward 2022 and our path to a 55% efficiency ratio."

Loans

Loan growth momentum is continuing in both markets and specialty lines. Growth in the western and central regions, in addition to equipment finance and healthcare, was partly offset by PPP loan forgiveness and amortizing portfolios of indirect and energy. Core loans increased $219.7 million, related to fewer payoffs and paydowns, a slight increase in line utilizations rates and increased loan pipeline pull-through rate. During the quarter, $482.2 million in PPP loans were forgiven. Loans totaled $20.9 billion at September 30, 2021, down $262.5 million, or 1%, linked-quarter.

Average loans totaled $20.9 billion for the third quarter of 2021, down $447.6 million, or 2%, linked-quarter. Management expects year-end loans to total approximately $20.4 billion, or a 3%, increase year-over-year.

Deposits

Excess liquidity related to stimulus and other pandemic-related client funds contributed to the third quarter of 2021's elevated level of deposits. Total deposits at September 30, 2021 were $29.2 billion, down $65.0 million, or less than 1%, from June 30, 2021.

DDAs totaled $13.7 billion at September 30, 2021, up $247.0 million, or 2%, from June 30, 2021 and comprised 47% of total period-end deposits. Interest-bearing transaction and savings deposits totaled $11.3 billion at the end of the third quarter of 2021, flat linked-quarter. Compared to June 30, 2021, time deposits of $1.2 billion were down $143.7 million, or 11%. Interest-bearing public fund deposits decreased $151.4 million, or 5%, linked-quarter, ending September at $3.1 billion.

Average deposits for the third quarter of 2021 were $29.2 billion, virtually unchanged linked-quarter.

Asset Quality

The total allowance for credit losses (ACL) was $400.5 million at September 30, 2021, down $28.8 million from June 30, 2021. During the third quarter of 2021, the company recorded a negative provision for credit losses of $27.0 million, compared to a negative provision of $17.2 million in the second quarter of 2021. Net charge-offs totaled $1.8 million in the third quarter of 2021, or 0.03% of average total loans on an annualized basis, down from $10.5 million, or 0.20% of average total loans in the second quarter of 2021. The ratio of ACL to period-end loans was 1.92% (2.00% excluding PPP loans) at September 30, 2021, compared to 2.03% (2.17% excluding PPP loans) at June 30, 2021.

The company's overall asset quality metrics continued to improve with commercial criticized and total nonperforming loans down 11% and 27%, respectively, linked-quarter. Nonperforming assets (NPAs) totaled $71.9 million at September 30, 2021, down $25.7 million, or 26%, from June 30, 2021. During the third quarter of 2021, total nonperforming loans decreased $24.0 million, or 27%, while ORE and foreclosed assets were down $1.8 million, or 17% linked-quarter. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 0.34% at September 30, 2021, down 12 bps from June 30, 2021.

Net Interest Income and Net Interest Margin (NIM)

Net interest income (TE) for the third quarter of 2021 was $237.5 million, virtually unchanged from the second quarter of 2021.

The net interest margin (NIM) was 2.94% in the third quarter of 2021, a decline of 2 bps linked-quarter. Factors driving the change in NIM include a full quarter's impact from the sub-debt redemption in June 2021 (+2 bps) and the impact of lower deposit costs (+3 bps), offset by a change in earning asset mix (-6 bps) and the net impact of interest recoveries (-1 bp).

Average earning assets were $32.1 billion for the third quarter of 2021, down $98.1 million, or less than 1%, from the second quarter of 2021.

Management expects continued NIM compression in the fourth quarter of 2021 with net interest income down slightly linked-quarter.

Noninterest Income

Noninterest income totaled $93.4 million for the third quarter of 2021, down $0.9 million, or 1%, from the second quarter of 2021. Included in noninterest income was a $4.6 million gain from the sale of the remaining Hancock Horizon Funds. In the second quarter of 2021, noninterest income included $2.8 million related to the sale of Mastercard class B common stock. Adjusting for these items, noninterest income totaled $88.8 million in the third quarter, down $2.7 million, or 3%, linked-quarter.

Service charges on deposits were up $1.8 million, or 9%, from the second quarter of 2021, driven by an additional posting day, lower earnings credit rates, seasonality and higher customer activity. Bankcard and ATM fees were down $0.6 million, or 3%, from the second quarter of 2021, mainly impacted by Hurricane Ida evacuation, branch and ATM closures and fee waivers.

Investment and annuity income and insurance fees were down $0.2 million, or 2%, linked-quarter. Trust fees were down $0.3 million, or 2% linked-quarter, reflecting second quarter seasonality in tax prep fees and a third quarter impact of Hurricane Ida.

Fees from secondary mortgage operations totaled $7.0 million for the third quarter of 2021, down $5.6 million, or 44%, linked-quarter, mainly from the impact of Hurricane Ida and a diversification in delivery methods in the second quarter of 2021.

Other noninterest income totaled $22.2 million, up $4.0 million, or 22%, from the second quarter of 2021. The increase is primarily due to the gain on sale of Hancock Horizon Funds noted above.

Noninterest Expense & Taxes

Noninterest expense totaled $194.7 million, down $42.1 million, or 18% linked-quarter. Included in the total was $3.2 million of net nonoperating expenses related primarily to Hurricane Ida, which were partly offset by a reversal of severance. In the second quarter of 2021, noninterest expense included $45.0 million related to previously announced efficiency initiatives. Excluding these items, operating expense was down $0.3 million, or less than 1%, linked-quarter.

Personnel expense (operating) totaled $113.8 million in the third quarter of 2021, down $3.5 million, or 3%, linked-quarter. The decrease is mainly related to the savings associated with efficiency initiatives noted last quarter.

Occupancy and equipment expense totaled $16.9 million in the third quarter of 2021, down $0.5 million, or 3%, from the second quarter of 2021. Amortization of intangibles totaled $4.1 million for the third quarter of 2021, down $0.2 million, or 4%, linked-quarter.

Gains on sales of ORE and other foreclosed assets exceeded expenses by $0.4 million in the third quarter of 2021, compared to an expense of $0.1 million in the second quarter of 2021.

Other operating expense totaled $61.1 million in the third quarter of 2021, up $3.9 million, or 7%, linked-quarter. The linked-quarter change is primarily due to increased advertising expense and other miscellaneous items.

The effective income tax rate for third quarter 2021 was 19.2%. The effective income tax rate continues to be less than the statutory rate due primarily to tax-exempt income and tax credits.

Capital

Common stockholders' equity at September 30, 2021 totaled $3.6 billion, up $66.9 million, or 2%, from June 30, 2021. The tangible common equity (TCE) ratio was 7.85%, up 15 bps from June 30, 2021, mainly the result of earnings, partially offset by OCI, dividends and growth in tangible assets. The company remains well capitalized, with both bank and holding company capital levels in excess of required regulatory minimums. The company's CET1 ratio is estimated to be 11.19% at September 30, 2021, up 21 bps linked-quarter. During the third quarter of 2021, the company bought back 56,349 shares of its common stock at an average price of $44.49 per share. This stock repurchase is part of the Board authorization to repurchase up to 4,338,000 shares of the company's common stock, set to expire December 31, 2022.

Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 4:00 p.m. Central Time on Tuesday, October 19, 2021 to review the results. A live listen-only webcast of the call will be available under the Investor Relations section of Hancock Whitney's website at investors.hancockwhitney.com. A link to the release with additional financial tables, and a link to a slide presentation related to second quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial 844-200-6205 or 646-904-5544, access code 496046.

An audio archive of the conference call will be available under the Investor Relations section of our website. A replay of the call will also be available through October 24, 2021 by dialing 866-813-9403 or 929-458-6194, access code 201534.

About Hancock Whitney

Since the late 1800s, Hancock Whitney has embodied core values of Honor & Integrity, Strength & Stability, Commitment to Service, Teamwork, and Personal Responsibility. Hancock Whitney offices and financial centers in Mississippi, Alabama, Florida, Louisiana, and Texas offer comprehensive financial products and services, including traditional and online banking; commercial and small business banking; private banking; trust and investment services; healthcare banking; certain insurance services; and mortgage services. The company also operates a loan production office in Nashville, Tennessee. BauerFinancial, Inc., the nation's leading independent bank rating and analysis firm, consistently recommends Hancock Whitney as one of America's most financially sound banks. More information is available at www.hancockwhitney.com.

Non-GAAP Financial Measures

This news release includes non-GAAP financial measures to describe Hancock Whitney's performance. These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. The reconciliations of those measures to GAAP measures are provided either in the financial tables or in Appendix A thereto.

Consistent with the provisions of subpart 229.1400 of the Securities and Exchange Commission's Regulation S-K, "Disclosures by Bank and Savings and Loan Registrants," the company presents net interest income, net interest margin and efficiency ratios on a fully taxable equivalent ("TE") basis. The TE basis adjusts for the tax-favored status of net interest income from certain loans and investments using the statutory federal tax rate to increase tax-exempt interest income to a taxable equivalent basis. The company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

The company presents certain additional non-GAAP financial measures to assist the reader with a better understanding of the company's performance period over period, as well as to provide investors with assistance in understanding the success management has experienced in executing its strategic initiatives. These non-GAAP measures may reference the concept "operating." The company uses the term "operating" to describe a financial measure that excludes income or expense considered to be nonoperating in nature. Items identified as nonoperating are those that, when excluded from a reported financial measure, provide management or the reader with a measure that may be more indicative of forward-looking trends in the company's business.

Important Cautionary Statement about Forward-Looking Statements

This news release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements that we may make include statements regarding our expectations of our performance and financial condition, balance sheet and revenue growth, the provision for credit losses, loan growth expectations, management's predictions about charge-offs for loans, the impact of the COVID-19 pandemic on the economy and our operations, the adequacy of our enterprise risk management framework, the ongoing impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, success of revenue-generating initiatives, the effectiveness of derivative financial instruments and hedging activities to manage risks, projected tax rates, increased cybersecurity risks, including potential business disruptions or financial losses, the adequacy of our internal controls over financial reporting, the financial impact of regulatory requirements and tax reform legislation, the impact of the change in the referenced rate reform, deposit trends, credit quality trends, the impact of PPP loans and forgiveness on our results, changes in interest rates, inflation, net interest margin trends, future expense levels, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts, accretion levels and expected returns.

Given the many unknowns and risks being heavily weighted to the downside, our forward-looking statements are subject to the risk that conditions will be substantially different than we are currently expecting. If efforts to contain and inoculate our population against COVID-19, and other variants thereof, are unsuccessful and restrictions on movement are re-imposed, the economic impact could continue to be substantial. The COVID-19 outbreak and its consequences, including responsive measures to manage it, have had and are likely to continue to have an adverse effect, possibly materially, on our business and financial performance by adversely affecting, possibly materially, the demand and profitability of our products and services, the valuation of assets and our ability to meet the needs of our customers.

In addition, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words "believes," "expects," "anticipates," "estimates," "intends," "plans," "forecast," "goals," "targets," "initiatives," "focus," "potentially," "probably," "projects," "outlook," or similar expressions or future conditional verbs such as "may," "will," "should," "would," and "could." Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. Forward-looking statements are subject to significant risks and uncertainties. Any forward-looking statement made in this release is subject to the safe harbor protections set forth in the Private Securities Litigation Reform Act of 1995. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2020 and in other periodic reports that we file with the SEC.

HANCOCK WHITNEY CORPORATION
FINANCIAL HIGHLIGHTS
(Unaudited)

	Three Months Ended									Nine Months Ended
(dollars and common share data in thousands, except per share amounts)	9/30/2021			6/30/2021			9/30/2020			9/30/2021			9/30/2020
NET INCOME
Net interest income	$	234,709		$	234,643		$	235,183		$	703,939		$	704,237
Net interest income (TE) (a)		237,477			237,497			238,372			712,483			714,122
Provision for credit losses		(26,955	)		(17,229	)		24,999			(49,095	)		578,690
Noninterest income		93,361			94,272			83,748			274,722			242,078
Noninterest expense		194,703			236,770			195,774			624,545			595,648
Income tax expense (benefit)		30,740			20,656			18,802			77,739			(79,274	)
Net income (loss)	$	129,582		$	88,718		$	79,356		$	325,472		$	(148,749	)
For informational purposes - included above, pre-tax
Nonoperating item included in noninterest income:
Gain on sale of Hancock Horizon Funds	$	4,576		$	—		$	—		$	4,576		$	—
Gain on sale of Mastercard Class B common stock		—			2,800			—			2,800			—
Nonoperating items included in noninterest expense:
Efficiency initiatives		(1,867	)		40,812			—			38,945			—
Hurricane related expenses		5,092			—			—			5,092			—
Loss on redemption of subordinated notes		—			4,165			—			4,165			—
Provision for credit loss associated with energy loan sale		—			—			—			—			160,101
PERIOD-END BALANCE SHEET DATA
Loans	$	20,886,015		$	21,148,530		$	22,240,204		$	20,886,015		$	22,240,204
Securities		8,308,622			8,633,133			7,056,276			8,308,622			7,056,276
Earning assets		32,348,036			32,075,450			30,179,103			32,348,036			30,179,103
Total assets		35,318,308			35,098,709			33,193,324			35,318,308			33,193,324
Noninterest-bearing deposits		13,653,376			13,406,385			11,881,548			13,653,376			11,881,548
Total deposits		29,208,157			29,273,107			27,030,659			29,208,157			27,030,659
Common stockholders' equity		3,629,766			3,562,901			3,375,644			3,629,766			3,375,644
AVERAGE BALANCE SHEET DATA
Loans	$	20,941,173		$	21,388,814		$	22,407,825		$	21,355,483		$	22,200,385
Securities (b)		8,368,824			8,194,812			6,389,214			8,014,023			6,223,361
Earning assets		32,097,381			32,195,515			29,412,261			31,773,473			29,020,349
Total assets		35,207,960			35,165,684			32,685,430			34,821,420			32,163,823
Noninterest-bearing deposits		13,535,961			13,237,796			11,585,617			13,053,586			10,450,457
Total deposits		29,237,306			29,228,809			26,763,795			28,872,317			25,934,258
Common stockholders' equity		3,606,087			3,488,592			3,351,593			3,512,651			3,441,981
COMMON SHARE DATA
Earnings (loss) per share - diluted	$	1.46		$	1.00		$	0.90		$	3.67		$	(1.73	)
Cash dividends per share		0.27			0.27			0.27			0.81			0.81
Book value per share (period-end)		41.81			41.03			39.07			41.81			39.07
Tangible book value per share (period-end)		31.10			30.27			28.11			31.10			28.11
Weighted average number of shares - diluted		87,006			86,990			86,400			86,951			86,614
Period-end number of shares		86,823			86,847			86,400			86,823			86,400
Market data
High sales price	$	48.19		$	50.69		$	22.23		$	50.69		$	44.24
Low sales price		39.07			40.25			17.42			32.52			14.32
Period-end closing price		47.12			44.44			18.81			47.12			18.81
Trading volume		22,482			25,570			32,139			77,015			130,703
PERFORMANCE RATIOS
Return on average assets		1.46	%		1.01	%		0.97	%		1.25	%		(0.62	)%
Return on average common equity		14.26	%		10.20	%		9.42	%		12.39	%		(5.77	)%
Return on average tangible common equity		19.22	%		13.94	%		13.14	%		16.89	%		(7.99	)%
Tangible common equity ratio (c)		7.85	%		7.70	%		7.53	%		7.85	%		7.53	%
Net interest margin (TE)		2.94	%		2.96	%		3.23	%		3.00	%		3.29	%
Noninterest income as a percent of total revenue (TE)		28.22	%		28.41	%		26.00	%		27.83	%		25.32	%
Efficiency ratio (d)		57.44	%		57.01	%		59.29	%		57.52	%		60.69	%
Average loan/deposit ratio		71.62	%		73.18	%		83.72	%		73.97	%		85.61	%
Allowance for loan losses as a percentage of period-end loans		1.78	%		1.89	%		2.02	%		1.78	%		2.02	%
Allowance for credit losses as a percent of period-end loans (e)		1.92	%		2.03	%		2.16	%		1.92	%		2.16	%
Annualized net charge-offs to average loans		0.03	%		0.20	%		0.43	%		0.19	%		2.23	%
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due		506.17	%		415.00	%		234.89	%		506.17	%		234.89	%
FTE headcount		3,429			3,626			4,058			3,429			4,058

(a) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.
(b) Average securities does not include unrealized holding gains/losses on available for sale securities.
(c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets.
(d) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items.
(e) The allowance for credit losses includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.


HANCOCK WHITNEY CORPORATION
QUARTERLY FINANCIAL HIGHLIGHTS
(Unaudited)

	Three Months Ended
(dollars and common share data in thousands, except per share amounts)	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020
NET INCOME
Net interest income	$	234,709		$	234,643		$	234,587		$	238,286		$	235,183
Net interest income (TE) (a)		237,477			237,497			237,509			241,401			238,372
Provision for credit losses		(26,955	)		(17,229	)		(4,911	)		24,214			24,999
Noninterest income		93,361			94,272			87,089			82,350			83,748
Noninterest expense		194,703			236,770			193,072			193,144			195,774
Income tax expense (benefit)		30,740			20,656			26,343			(297	)		18,802
Net income	$	129,582		$	88,718		$	107,172		$	103,575		$	79,356
For informational purposes - included above, pre-tax
Nonoperating item included in noninterest income:
Gain on sale of Hancock Horizon Funds	$	4,576		$	—		$	—		$	—		$	—
Gain on sale of Mastercard Class B common stock		—			2,800			—			—			—
Nonoperating items included in noninterest expense:
Efficiency initiatives		(1,867	)		40,812			—			—			—
Hurricane related expenses		5,092			—			—			—			—
Loss on redemption of subordinated notes		—			4,165			—			—			—
PERIOD-END BALANCE SHEET DATA
Loans	$	20,886,015		$	21,148,530		$	21,664,859		$	21,789,931		$	22,240,204
Securities		8,308,622			8,633,133			8,005,990			7,356,497			7,056,276
Earning assets		32,348,036			32,075,450			32,134,637			30,616,277			30,179,103
Total assets		35,318,308			35,098,709			35,072,643			33,638,602			33,193,324
Noninterest-bearing deposits		13,653,376			13,406,385			13,174,911			12,199,750			11,881,548
Total deposits		29,208,157			29,273,107			29,210,520			27,697,877			27,030,659
Common stockholders' equity		3,629,766			3,562,901			3,416,903			3,439,025			3,375,644
AVERAGE BALANCE SHEET DATA
Loans	$	20,941,173		$	21,388,814		$	21,745,298		$	22,065,672		$	22,407,825
Securities (b)		8,368,824			8,194,812			7,468,541			6,921,099			6,389,214
Earning assets		32,097,381			32,195,515			31,015,637			29,875,531			29,412,261
Total assets		35,207,960			35,165,684			34,078,200			33,067,462			32,685,430
Noninterest-bearing deposits		13,535,961			13,237,796			12,374,235			11,759,755			11,585,617
Total deposits		29,237,306			29,228,809			28,138,763			27,040,447			26,763,795
Common stockholders' equity		3,606,087			3,488,592			3,441,466			3,406,646			3,351,593
COMMON SHARE DATA
Earnings per share - diluted	$	1.46		$	1.00		$	1.21		$	1.17		$	0.90
Cash dividends per share		0.27			0.27			0.27			0.27			0.27
Book value per share (period-end)		41.81			41.03			39.38			39.65			39.07
Tangible book value per share (period-end)		31.10			30.27			28.57			28.79			28.11
Weighted average number of shares - diluted		87,006			86,990			86,805			86,657			86,400
Period-end number of shares		86,823			86,847			86,777			86,728			86,400
Market data
High sales price	$	48.19		$	50.69		$	47.37		$	34.89		$	22.23
Low sales price		39.07			40.25			32.52			18.59			17.42
Period-end closing price		47.12			44.44			42.01			34.02			18.81
Trading volume		22,482			25,570			28,963			27,564			32,139
PERFORMANCE RATIOS
Return on average assets		1.46	%		1.01	%		1.28	%		1.25	%		0.97	%
Return on average common equity		14.26	%		10.20	%		12.63	%		12.10	%		9.42	%
Return on average tangible common equity		19.22	%		13.94	%		17.38	%		16.74	%		13.14	%
Tangible common equity ratio (c)		7.85	%		7.70	%		7.26	%		7.64	%		7.53	%
Net interest margin (TE)		2.94	%		2.96	%		3.09	%		3.22	%		3.23	%
Noninterest income as a percentage of total revenue (TE)		28.22	%		28.41	%		26.83	%		25.44	%		26.00	%
Efficiency ratio (d)		57.44	%		57.01	%		58.12	%		58.23	%		59.29	%
Average loan/deposit ratio		71.62	%		73.18	%		77.28	%		81.60	%		83.72	%
Allowance for loan losses as a percentage of period-end loans		1.78	%		1.89	%		1.96	%		2.07	%		2.02	%
Allowance for credit losses as a percentage of period-end loans (e)		1.92	%		2.03	%		2.11	%		2.20	%		2.16	%
Annualized net charge-offs to average loans		0.03	%		0.20	%		0.34	%		0.44	%		0.43	%
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due		506.17	%		415.00	%		354.09	%		305.20	%		234.89	%
FTE headcount		3,429			3,626			3,926			3,986			4,058

(a) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%.
(b) Average securities does not include unrealized holding gains/losses on available for sale securities.
(c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets.
(d) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items.
(e) The allowance for credit losses includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.

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