Hancock Whitney Corporation (NASDAQ:HWC) Q1 2023 Earnings Call Transcript

So, to the extent that that improves and that’s a little bit of a help going forward.Christopher Marinac And then Mike mechanically, getting into some of the details at the very end of the deck today, as rates go down, are you better protected than you were? Is that fair to say?Mike Achary Yes. Obviously, if rates start to go down, then those cash flow hedges, the carry value obviously becomes less negative. And so, that’s a plus in terms of the NII support.Christopher Marinac Okay. And then I guess a related question, if you didn’t have the hedges in place, I mean as time passes, you still have some natural cash flow and amortization of your securities book, right? So, those numbers should be getting better even on their own beyond [theoretically ratio] [ph]?Mike Achary Yes, absolutely.

And the cash flow coming off the bond portfolio right now is about 125 million per quarter. So, that’s a significant amount coming off and the bonds obviously. The carry value of the bonds will go down as we go through that. And then also the duration begins to shorten a little bit.Christopher Marinac Okay. So, you’re still in a position where there’s no reason to: a, restructure and it’s probably too expensive to do that anyways, but then even some of the outlets with the Fed created that’s not necessarily applicable at this point?Mike Achary No, I don’t think so. But in terms of restructuring the bond portfolio, I mean that’s something we look at like anyone else does on a quarter-by-quarter basis, but you’re right. Right now, it’s not something that we have an appetite to execute on.Christopher Marinac Great.

Thanks for the extra detail today. I appreciate it.Mike Achary You bet.John Hairston Thank you very much.Mike Achary Okay. Before we close the call, I want to get back to Brandon’s question. His question was around the NIM for the month of March. So that was at 3.47%, so about 8 basis points off the quarterly average. So, just wanted to get back to Brandon on that.Operator There are no further questions at this time. I’ll now turn the call back over to John for closing remarks.John Hairston Thanks everyone for your attention to the call and for calling in late afternoon. Thank you, Chantelle for running the call for us. We appreciate everyone’s interest and we’ll look forward to seeing you on the road.Operator This concludes today’s conference call.

Thank you for your participation. You may now disconnect.