HANCOCK WHITNEY CORP Debt Disclosure
Note 10. Long-Term Debt
At December 31, 2024 and 2023, long-term debt was comprised of the following:
|
|
|
|
|
||
|
December 31, |
|
||||
($ in thousands) |
2024 |
|
2023 |
|
||
Subordinated notes payable, maturing June 2060 |
$ |
172,500 |
|
$ |
172,500 |
|
Other long-term debt |
|
43,424 |
|
|
69,349 |
|
Less: unamortized debt issuance costs |
|
(5,380 |
) |
|
(5,532 |
) |
Total long-term debt |
$ |
210,544 |
|
$ |
236,317 |
|
The following table sets forth unamortized debt issuance costs associated with the respective debt instruments at December 31, 2024:
($ in thousands) |
Principal |
|
Unamortized Debt |
|
||
Subordinated notes payable, maturing June 2060 |
$ |
172,500 |
|
$ |
5,380 |
|
Other long-term debt |
|
43,424 |
|
|
— |
|
Total |
$ |
215,924 |
|
$ |
5,380 |
|
On June 9, 2020, the Company completed the issuance of subordinated notes payable with an aggregate principal amount of $172.5 million, with a stated maturity of June 15, 2060. The notes accrue interest at a fixed rate of 6.25% per annum, with quarterly interest payments that began September 15, 2020. Subject to prior approval by the Federal Reserve, the Company may redeem the notes in whole or in part on any interest payment date on or after June 15, 2025. This debt qualifies as tier 2 capital in the calculation of certain regulatory capital ratios.
All of the Company’s other long-term debt consists of borrowings associated with tax credit fund activities. Although these borrowings have indicated maturities through 2052, each is expected to be satisfied at the end of the seven-year compliance period for the related tax credit investments.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 27, 2025 | Showing above |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.