Hancock Whitney Reports Third Quarter 2023 EPS of $1.12

Rhea-AI Summary

Hancock Whitney Corporation announces financial results for Q3 2023, with net income of $97.7 million. Pre-provision net revenue (PPNR) totaled $153.4 million. Deposits increased by $277 million, and loan growth was $194 million. NIM was 3.27%, down from 3.30% in Q2 2023. CET1 ratio estimated at 12.04%. Management expects low- to mid-single digit loan growth and flat to low single digit deposit growth for 2023.

Positive

• Net income of $97.7 million for Q3 2023
• Deposits increased by $277 million
• Loan growth of $194 million
• CET1 ratio estimated at 12.04%

Negative

• NIM decreased from 3.30% to 3.27% in Q3 2023

GULFPORT, Miss.--(BUSINESS WIRE)-- Hancock Whitney Corporation (Nasdaq: HWC) today announced its financial results for the third quarter of 2023. Net income for the third quarter of 2023 totaled $97.7 million, or $1.12 per diluted common share (EPS), compared to $117.8 million, or $1.35 per diluted common share, in the second quarter of 2023. The company reported net income for the third quarter of 2022 of $135.4 million, or $1.55 per diluted common share.

Third Quarter 2023 Highlights

• 3Q23 net income impacted by “idiosyncratic” charge-off of $29.7 million
• Pre-provision net revenue (PPNR) totaled $153.4 million, compared to $157.8 million in 2Q23
• Deposits increased $277 million, or 4% LQA
• Loan growth of $194 million, or 3% LQA
• Criticized commercial loans and nonaccrual loans remain at low levels
• ACL coverage remained solid at 1.40%
• NIM 3.27%, compared to 3.30% in 2Q23
• CET1 ratio estimated at 12.04%, up 21 bps linked-quarter; TCE ratio 7.34%, compared to 7.50% in 2Q23
• Efficiency ratio 56.38%

“Third quarter of 2023 results reflect the continued strength and stability of our Company,” said John M. Hairston, President & CEO. “Despite the ongoing challenges in today’s operating environment, we were able to fully fund loan growth with client deposit growth. Our NIM compression moderated this quarter as deposit betas slowed despite the continued remix of DDAs, our funding mix improved, and we reported an improved earning asset yield. Aside from the previously disclosed idiosyncratic charge-off, our problem credit metrics remain at historically low levels and we do not see any broad weaknesses in our loan portfolio. We continue to control expenses and are focused on growing fee income. We maintained a robust ACL to loans of 1.40% and our capital remains solid with estimated tier 1 leverage ratio above 10% and tier 1 common equity above 12%. We remain well capitalized including all unrealized losses in our portfolio. As we celebrate Hancock Whitney Founders Month, we are exceptionally proud of the efforts of our team in continuing our 124-year legacy and in our commitment to the people and communities we serve.”

Loans

Total loans were $24.0 billion at September 30, 2023, up $193.8 million, or 1%, from June 30, 2023. One-time close products drove the increase in mortgage loans, which convert from construction and development loans to permanent mortgages at construction completion. CRE-income producing loans increased this quarter related to completed multifamily construction projects, which converted from construction and development loans to permanent CRE-income producing at construction completion, and slowing loan prepayments.

Average loans totaled $23.8 billion for the third quarter of 2023, up $175.7 million, or 1%, linked-quarter. Management expects 2023 period-end loan growth to be in the range of low- to mid-single digits compared to year-end 2022.

Deposits

Total deposits at September 30, 2023 were $30.3 billion, up $276.8 million, or 1%, from June 30, 2023. The growth in deposits was primarily due to an increase of interest-bearing transaction and savings deposits mostly due to competitive rates offered and an increase in time deposits related to a shift from DDA deposits, offset by a decrease in noninterest bearing DDAs and a decrease in interest-bearing public funds related to seasonal activity.

DDAs totaled $11.6 billion at September 30, 2023, down $545.4 million, or 4%, from June 30, 2023 and comprised 38% of total period-end deposits. Interest-bearing transaction and savings deposits totaled $10.7 billion at the end of the third quarter of 2023, an increase of $229.4 million, or 2%, linked-quarter. Compared to June 30, 2023, retail time deposits of $4.0 billion were up $670.3 million, or 20%, and brokered deposits were $1.2 billion, virtually unchanged compared to the prior quarter. Interest-bearing public fund deposits decreased $72.2 million, or 2%, linked-quarter, ending September 30, 2023 at $2.9 billion.

Average deposits for the third quarter of 2023 were $29.8 billion, up $384.3 million, or 1%, linked-quarter. Management expects 2023 period-end deposit level growth to be flat to low single digits compared to year-end 2022.

Asset Quality

The total allowance for credit losses (ACL) was $335.9 million at September 30, 2023, down $9.8 million, or 3%, from June 30, 2023. During the third quarter of 2023, the company recorded a provision for credit losses of $28.5 million, compared to a provision for credit losses of $7.6 million in the second quarter of 2023. There were $38.3 million of net charge-offs in the third quarter of 2023, or 0.64% of average total loans on an annualized basis, compared to net charge-offs of $3.4 million, or 0.06% of average total loans in the second quarter of 2023. The ratio of ACL to period-end loans was 1.40% at September 30, 2023, compared to 1.45% at June 30, 2023.

Criticized commercial loans and nonaccrual loans remained at low levels at September 30, 2023. Criticized commercial loans totaled $275.1 million, or 1.46% of total commercial loans, at September 30, 2023, compared to $302.2 million, or 1.62% of total commercial loans at June 30, 2023. Nonaccrual loans totaled $60.3 million, or 0.25% of total loans, at September 30, 2023, compared to $78.2 million, or 0.33% of total loans, at June 30, 2023. ORE and foreclosed assets were $4.5 million, up $2.4 million, linked-quarter.

Net Interest Income and Net Interest Margin (NIM)

Net interest income (TE) for the third quarter of 2023 was $272.1 million, a decrease of $4.7 million, or 2%, from the second quarter of 2023. The net interest margin (NIM) (TE) was 3.27% in the third quarter of 2023, down 3 bps linked-quarter. A change in the mix of earning assets and loan yields (+16 bps) and decreased short term borrowing costs (+5 bps) led to a 21 basis point improvement in the NIM, offset by the impact of deposit remix and rates (-24 bps). Additional NIM detail and guidance is included in the third quarter of 2023 earnings investor deck.

Average earning assets were $33.1 billion for the third quarter of 2023, down $482.3 million, or 1%, from the second quarter of 2023.

Noninterest Income

Noninterest income totaled $86.0 million for the third quarter of 2023, up $2.8 million, or 3%, from the second quarter of 2023.

Service charges on deposits were up $0.8 million, or 4%, from the second quarter of 2023. The increase was primarily related to higher account activity. Bank card and ATM fees were down $0.4 million, or 2%, from the second quarter of 2023.

Investment and annuity income and insurance fees were up $0.3 million, or 3%, linked-quarter. Trust fees were down $0.8 million, or 5% linked-quarter, related to 2Q23 seasonal tax accounting fees. Fees from secondary mortgage operations totaled $2.6 million for the third quarter of 2023, up $0.3 million, or 13%, linked-quarter.

Other noninterest income totaled $15.4 million, up $2.6 million, or 20%, from the second quarter of 2023. The increase in other noninterest income was primarily related to increased FHLB dividends, SBIC income and loan-related fee income from specialty lines of business.

Noninterest Expense & Taxes

Noninterest expense totaled $204.7 million, up $2.6 million, or 1% linked-quarter.

Personnel expense totaled $116.3 million in the third quarter of 2023, up $1.4 million, or 1%, linked-quarter. The increase was primarily related to a reduction in the amount of personnel expense deferred (FAS 91) due to lower loan originations. Net occupancy and equipment expense totaled $18.2 million in the third quarter of 2023, up $0.5 million, or 3%, from the second quarter of 2023. Amortization of intangibles totaled $2.8 million for the third quarter of 2023, down $0.1 million, or 5%, linked-quarter.

ORE and other foreclosed assets gains exceeded expenses by less than $0.1 million in the third quarter of 2023, compared to a gain of $0.3 million in the second quarter of 2023.

Other expense totaled $67.4 million in the third quarter of 2023, up $0.6 million, or 1%, linked-quarter.

The effective income tax rate for third quarter 2023 was 19.9%.

Capital

Common stockholders’ equity at September 30, 2023 totaled $3.5 billion, down $53.4 million, or 2%, from June 30, 2023. The tangible common equity (TCE) ratio was 7.34%, down 16 bps from June 30, 2023. The company’s CET1 ratio is estimated to be 12.04% at September 30, 2023, up 21 bps linked-quarter. The company’s share buyback authorization (allowing the repurchase of up to 4,297,000 shares of the company’s outstanding common stock), is set to expire on December 31, 2024. No shares were repurchased in the third quarter of 2023.

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 17, 2023 to review third quarter 2023 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 third quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial 888-210-2654 or 646-960-0278, access code 6914431.

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, 2023 by dialing 800-770-2030 or 647-362-9199, access code 6914431.

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; and mortgage services. The company also operates combined loan and deposit production offices in the greater metropolitan areas of Nashville, Tennessee and Atlanta, Georgia. 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.” We use 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 our business.

We define Operating Pre-Provision Net Revenue as total revenue (te) less noninterest expense, excluding nonoperating items. Management believes that operating pre-provision net revenue is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.

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, capital levels, deposits (including growth, pricing and betas), investment portfolio, other sources of liquidity, loan growth expectations, management’s predictions about charge-offs for loans, general economic business conditions in our local markets, the impacts related to Russia’s military action in Ukraine, Federal Reserve action with respect to interest rates, the adequacy of our enterprise risk management framework, potential claims, damages, penalties, fines and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions, as well as the impact of recent negative developments affecting the banking industry and the resulting media coverage; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, success of revenue-generating and cost reduction 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 reference rate reform, deposit trends, credit quality trends, the impact of natural or man-made disasters, the impact of current and future economic conditions, including the effects of declines in the real estate market, high unemployment, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing, net interest margin trends, future expense levels, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts, accretion levels and expected returns.

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, 2022, Part II, “Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the period ended March 31, 2023, 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)		9/30/2023				6/30/2023				9/30/2022				9/30/2023				9/30/2022
NET INCOME
Net interest income		$	269,234			$	273,911			$	280,307			$	828,139			$	754,502
Net interest income (TE) (a)			272,086				276,748				282,910				836,412				762,235
Provision for credit losses			28,498				7,633				1,402				42,151				(30,886	)
Noninterest income			85,974				83,225				85,337				249,529				254,422
Noninterest expense			204,675				202,138				193,502				607,697				560,538
Income tax expense			24,297				29,571				35,351				85,821				98,970
Net income		$	97,738			$	117,794			$	135,389			$	341,999			$	380,302
PERIOD-END BALANCE SHEET DATA
Loans		$	23,983,679			$	23,789,886			$	22,585,585			$	23,983,679			$	22,585,585
Securities			7,916,101				8,195,679				8,333,191				7,916,101				8,333,191
Earning assets			32,733,591				32,715,630				31,213,449				32,733,591				31,213,449
Total assets			36,298,301				36,210,148				34,567,242				36,298,301				34,567,242
Noninterest-bearing deposits			11,626,371				12,171,817				14,290,817				11,626,371				14,290,817
Total deposits			30,320,337				30,043,501				28,951,274				30,320,337				28,951,274
Common stockholders' equity			3,501,003				3,554,476				3,180,439				3,501,003				3,180,439
AVERAGE BALANCE SHEET DATA
Loans		$	23,830,724			$	23,654,994			$	22,138,709			$	23,526,808			$	21,643,149
Securities (b)			8,888,477				9,007,821				9,177,460				9,010,201				8,949,988
Earning assets			33,137,565				33,619,829				31,783,801				33,171,798				32,583,652
Total assets			35,626,927				36,205,396				34,377,773				35,665,505				35,247,985
Noninterest-bearing deposits			11,453,236				12,153,453				14,323,646				12,184,410				14,447,445
Total deposits			29,757,180				29,372,899				29,180,626				29,311,176				29,727,009
Common stockholders' equity			3,572,487				3,567,260				3,405,463				3,518,105				3,464,699
COMMON SHARE DATA
Earnings per share - diluted		$	1.12			$	1.35			$	1.55			$	3.92			$	4.33
Cash dividends per share			0.30				0.30				0.27				0.90				0.81
Book value per share (period-end)			40.64				41.27				37.12				40.64				37.12
Tangible book value per share (period-end)			30.16				30.76				26.44				30.16				26.44
Weighted average number of shares - diluted			86,437				86,370				86,020				86,368				86,439
Period-end number of shares			86,148				86,123				85,686				86,148				85,686
Market data
High sales price		$	45.15			$	43.73			$	52.65			$	54.38			$	59.82
Low sales price			35.34				31.02				41.62				31.02				41.62
Period-end closing price			36.99				38.38				45.81				36.99				45.81
Trading volume			34,506				38,854				24,976				112,391				81,474
PERFORMANCE RATIOS
Return on average assets			1.09	%			1.30	%			1.56	%			1.28	%			1.44	%
Return on average common equity			10.85	%			13.24	%			15.77	%			13.00	%			14.68	%
Return on average tangible common equity			14.53	%			17.76	%			21.58	%			17.51	%			19.98	%
Tangible common equity ratio (c)			7.34	%			7.50	%			6.73	%			7.34	%			6.73	%
Net interest margin (TE)			3.27	%			3.30	%			3.54	%			3.37	%			3.13	%
Noninterest income as a percentage of total revenue (TE)			24.01	%			23.21	%			23.17	%			22.98	%			25.03	%
Efficiency ratio (d)			56.38	%			55.33	%			51.62	%			55.14	%			54.08	%
Average loan/deposit ratio			80.08	%			80.53	%			75.87	%			80.27	%			72.81	%
Allowance for loan losses as a percentage of period-end loans			1.28	%			1.32	%			1.36	%			1.28	%			1.36	%
Allowance for credit losses as a percentage of period-end loans (e)			1.40	%			1.45	%			1.50	%			1.40	%			1.50	%
Annualized net charge-offs to average loans			0.64	%			0.06	%			0.02	%			0.27	%			0.01	%
Allowance for loan losses as a % of nonaccrual loans			507.68	%			402.07	%			769.00	%			507.68	%			769.00	%
FTE headcount			3,681				3,705				3,607				3,681				3,607
(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)		9/30/2023				6/30/2023				3/31/2023				12/31/2022				9/30/2022
NET INCOME
Net interest income		$	269,234			$	273,911			$	284,994			$	295,501			$	280,307
Net interest income (TE) (a)			272,086				276,748				287,578				298,116				282,910
Provision for credit losses			28,498				7,633				6,020				2,487				1,402
Noninterest income			85,974				83,225				80,330				77,064				85,337
Noninterest expense			204,675				202,138				200,884				190,154				193,502
Income tax expense			24,297				29,571				31,953				36,137				35,351
Net income		$	97,738			$	117,794			$	126,467			$	143,787			$	135,389
PERIOD-END BALANCE SHEET DATA
Loans		$	23,983,679			$	23,789,886			$	23,404,523			$	23,114,046			$	22,585,585
Securities			7,916,101				8,195,679				8,390,684				8,408,536				8,333,191
Earning assets			32,733,591				32,715,630				34,106,792				31,873,027				31,213,449
Total assets			36,298,301				36,210,148				37,547,083				35,183,825				34,567,242
Noninterest-bearing deposits			11,626,371				12,171,817				12,860,027				13,645,113				14,290,817
Total deposits			30,320,337				30,043,501				29,613,070				29,070,349				28,951,274
Common stockholders' equity			3,501,003				3,554,476				3,531,232				3,342,628				3,180,439
AVERAGE BALANCE SHEET DATA
Loans		$	23,830,724			$	23,654,994			$	23,086,529			$	22,723,248			$	22,138,709
Securities (b)			8,888,477				9,007,821				9,137,034				9,200,511				9,177,460
Earning assets			33,137,565				33,619,829				32,753,781				32,244,681				31,783,801
Total assets			35,626,927				36,205,396				35,159,050				34,498,915				34,377,773
Noninterest-bearing deposits			11,453,236				12,153,453				12,963,133				13,854,625				14,323,646
Total deposits			29,757,180				29,372,899				28,792,851				28,816,338				29,180,626
Common stockholders' equity			3,572,487				3,567,260				3,412,813				3,228,667				3,405,463
COMMON SHARE DATA
Earnings per share - diluted		$	1.12			$	1.35			$	1.45			$	1.65			$	1.55
Cash dividends per share			0.30				0.30				0.30				0.27				0.27
Book value per share (period-end)			40.64				41.27				41.03				38.89				37.12
Tangible book value per share (period-end)			30.16				30.76				30.47				28.29				26.44
Weighted average number of shares - diluted			86,437				86,370				86,282				86,249				86,020
Period-end number of shares			86,148				86,123				86,066				85,941				85,686
Market data
High sales price		$	45.15			$	43.73			$	54.38			$	57.00			$	52.65
Low sales price			35.34				31.02				34.42				45.64				41.62
Period-end closing price			36.99				38.38				36.40				48.39				45.81
Trading volume			34,506				38,854				39,030				29,996				24,976
PERFORMANCE RATIOS
Return on average assets			1.09	%			1.30	%			1.46	%			1.65	%			1.56	%
Return on average common equity			10.85	%			13.24	%			15.03	%			17.67	%			15.77	%
Return on average tangible common equity			14.53	%			17.76	%			20.49	%			24.64	%			21.58	%
Tangible common equity ratio (c)			7.34	%			7.50	%			7.16	%			7.09	%			6.73	%
Net interest margin (TE)			3.27	%			3.30	%			3.55	%			3.68	%			3.54	%
Noninterest income as a percentage of total revenue (TE)			24.01	%			23.21	%			21.83	%			20.54	%			23.17	%
Efficiency ratio (d)			56.38	%			55.33	%			53.76	%			49.81	%			51.62	%
Average loan/deposit ratio			80.08	%			80.53	%			80.18	%			78.86	%			75.87	%
Allowance for loan losses as a percentage of period-end loans			1.28	%			1.32	%			1.32	%			1.33	%			1.36	%
Allowance for credit losses as a percentage of period-end loans (e)			1.40	%			1.45	%			1.46	%			1.48	%			1.50	%
Annualized net charge-offs to average loans			0.64	%			0.06	%			0.10	%			0.02	%			0.02	%
Allowance for loan losses as a % of nonaccrual loans			507.68	%			402.07	%			569.31	%			789.38	%			769.00	%
FTE headcount			3,681				3,705				3,679				3,627				3,607
(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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231017476780/en/

Kathryn Shrout Mistich, VP, Investor Relations Manager

504.539.7836 or kathryn.mistich@hancockwhitney.com

Source: Hancock Whitney Corporation

FAQ

What was the net income for Q3 2023?

The net income for Q3 2023 was $97.7 million.

What was the change in deposits for Q3 2023?

Deposits increased by $277 million in Q3 2023.

What was the loan growth for Q3 2023?

Loan growth was $194 million in Q3 2023.

What is the CET1 ratio estimated at?

The CET1 ratio is estimated at 12.04%.