Hancock Whitney Corporation · NASDAQ:HWC
Hancock Whitney — Hancock Holding — Q3 2013 Earnings Presentation
35 slides from Hancock Whitney's earnings presentation, Oct 24, 2013
Slide 1: Hancock reports third quarter 2013 financial results
Exhibit 99.1 For Immediate Release October 24, 2013 For More Information Trisha Voltz Carlson SVP, Investor Relations Manager 504.299.5208 trisha.carlson@hancockbank.com Hancock reports third quarter 2013 financial results GULFPORT, Miss. (October 24, 2013) — Hancock Holding Company (Nasdaq: HBHC) t
Slide 2: Hancock reports third quarter 2013 financial results
Hancock reports third quarter 2013 financial results October 24, 2013 “Our third quarter results reflect progress in implementing our current strategic initiatives,” said Hancock’s President and Chief Executive Officer Carl J. Chaney. “Stabilization of the core margin and net interest income, better
Slide 3: Asset Quality
Hancock reports third quarter 2013 financial results October 24, 2013 Asset Quality Non-performing assets (NPAs) totaled $216 million at September 30, 2013, slightly down from June 30, 2013. During the third quarter total non-performing loans declined $14 million, while foreclosed and surplus real e
Slide 4: Noninterest Income
Hancock reports third quarter 2013 financial results October 24, 2013 Noninterest Income Noninterest income totaled $63.1 million for the third quarter of 2013, down $0.8 million from the second quarter of 2013. Service charges on deposits totaled $20.5 million for the third quarter of 2013, up $0.7
Slide 5: Income tax rate and Capital
Hancock reports third quarter 2013 financial results October 24, 2013 The effective income tax rate for the third quarter of 2013 was 26%, up slightly from the second quarter of 2013. The effective income tax rate continues to be less than the statutory rate of 35% due primarily to tax-exempt income
Slide 6: Financial Highlights
Hancock Holding Company Financial Highlights (amounts in thousands, except per share data and FTE headcount) (unaudited) Three Months Ended Nine Months Ended 9/30/2013 6/30/2013 9/30/2012 9/30/2013 9/30/2012 Per Common Share Data Earnings per share: Basic $ 0.40 $ 0.55 $ 0.55 $ 1.51 $ 1.23 Diluted $
Slide 7: Financial Highlights: Asset Quality Information
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended Nine Months Ended 9/30/2013 6/30/2013 9/30/2012 9/30/2013 9/30/2012 Asset Quality Information Non-accrual loans (c) $ 100,649 $ 110,516 $ 135,499 $ 100,649 $ 135,499 Restructured loans (d) 29,705 33,74
Slide 8: Financial Highlights: Income Statement
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended Nine Months Ended 9/30/2013 6/30/2013 9/30/2012 9/30/2013 9/30/2012 Income Statement Interest income $ 181,639 $ 179,649 $ 189,205 $ 546,560 $ 571,410 Interest income (TE) 184,221 182,292 192,071 554,5
Slide 9: Financial Highlights: Period-end Balance Sheet
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended 9/30/2013 6/30/2013 3/31/2013 12/31/2012 9/30/2012 Period-end Balance Sheet Commercial non-real estate loans $ 4,625,315 $ 4,653,342 $ 4,425,286 $ 4,433,288 $ 4,235,823 Construction and land developmen
Slide 10: Financial Highlights: Average Balance Sheet
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended Nine Months Ended 9/30/2013 6/30/2013 9/30/2012 9/30/2013 9/30/2012 Average Balance Sheet Commercial non-real estate loans $ 4,720,608 $ 4,539,259 $ 4,056,457 $ 4,558,934 $ 3,903,767 Construction and l
Slide 11: Average Balance and Net Interest Margin Summary
Hancock Holding Company Average Balance and Net Interest Margin Summary (amounts in thousands) (unaudited) Three Months Ended 9/30/2013 6/30/2013 9/30/2012 Interest Volume Rate Interest Volume Rate Interest Volume Rate Average Earning Assets Commercial & real estate loans (TE) $109,450 $ 8,582,849 5
Slide 12: Average Balance and Net Interest Margin Summary
Hancock Holding Company Average Balance and Net Interest Margin Summary (amounts in thousands) (unaudited) Nine Months Ended 9/30/2013 9/30/2012 Interest Volume Rate Interest Volume Rate Average Earning Assets Commercial & real estate loans (TE) $326,090 $ 8,429,559 5.17% $330,355 $ 7,994,444 5.52%
Slide 13: Quarterly Financial Data
Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) (unaudited) Three Months Ended 9/30/2013 6/30/2013 3/31/2013 12/31/2012 9/30/2012 Per Common Share Data Earnings per share: Basic $ 0.40 $ 0.55 $ 0.56 $ 0.55 $ 0.55 Diluted $ 0.40 $ 0.55
Slide 14: Third Quarter 2013 Financial Results
Third Quarter 2013 Financial Results October 24, 2013
Slide 15: Forward-Looking Statements
Forward-Looking Statements Certain of the statements or information included in this presentation may constitute forward-looking statements. Forward-looking statements include projections of revenue, costs, results of operations or financial condition or statements regarding future market conditions
Slide 16: Third Quarter Highlights
Third Quarter Highlights ($s in millions; except per share 3Q13 2Q13 LQ • Net income (operating) $47 million or data) change $.56 per diluted common share Operating Income $46.8 $46.9 --- Earnings Per Share (diluted) - $.56 $.55 +2% • An increase of $4.6 million in loan accretion, operating or $.04
Slide 17: Strong Originations Offset By Payoff Activity
Strong Originations Offset By Payoff Activity • Excluding the FDIC covered loans, total loans of $11.3 billion were up $92 million, or 3%, LQA • Solid origination activity commercial customers across the footprint, especially in south Louisiana, was offset by higher than normal paydowns and payoffs
Slide 18: Whitney Portfolio Continues Solid Performance
Whitney Portfolio Continues Solid Performance • Loan mark on the acquired-performing portfolio accreted into earnings over the life of the portfolio • Credit-impaired loan mark available for charge-offs; if not needed for charge-offs then accreted into income • Quarterly reviews of accretion levels
Slide 19: Peoples First Loan Mark Used For Charge-Offs
Peoples First Loan Mark Used For Charge-Offs • FDIC covered loan portfolio • Entire loan mark available for charge-offs; if not needed for charge-offs then accreted into income • Quarterly reviews of accretion levels and portfolio performance will impact reported margin • FDIC loss share receivable
Slide 20: Improved Asset Quality Metrics
Improved Asset Quality Metrics • Nonperforming assets totaled $200 million (excluding impact of closed branches in 3Q13) Bank branches closed in August and transferred to ORE totaled $16.4 million ORE and foreclosed assets (excluding impact of closed branches) declined $3.1 million linked-quarter No
Slide 21: Securities Portfolio Funded Loan Growth in Third Quarter
Securities Portfolio Funded Loan Growth in Third Quarter • Portfolio totaled $4.1 billion, down $180 million linked-quarter • Decline during 3Q13 funded loan growth and deposit runoff Better earning asset mix • Yield 2.24% for 3Q13, up 13 bps Premium amortization declined $2.1 million linked-quarter
Slide 22: Strong Core Deposit Funding
Strong Core Deposit Funding • Total deposits $15.1 billion, down approximately $100 million • DDA of $5.5 billion, up $140 million linked-quarter • Overall decrease mainly related to a decline in CDs and public funds $s in millions • Funding mix remained strong Noninterest-bearing demand deposits (D
Slide 23: Core NIM Stabilizing, Reported NIM Impacted By Purchase Accounting Adjustments
Core NIM Stabilizing, Reported NIM Impacted By Purchase Accounting Adjustments • Reported net interest margin (NIM) 4.23%, up 6 bps linked-quarter Approximately 7 bps of NIM expansion related to $2.9 million increase in net purchase accounting adjustments linked-quarter Decline in loan yield offset
Slide 24: Purchase Accounting Adjustments Core NII & NIM Reconciliation
Purchase Accounting Adjustments Core NII & NIM Reconciliation ($s in millions) 3Q13 2Q13 1Q13 4Q12 3Q12 Net Interest Income (TE) reported – (NII) $174.1 $171.8 $176.7 $182.8 $180.1 Whitney expected loan accretion (performing) 10.4 12.8 13.7 17.6 17.4 Whitney expected loan accretion (credit impaired)
Slide 25: Purchase Accounting Adjustments
Purchase Accounting Adjustments Impact of Purchase Accounting Adjustments 2012-2015 (2013-2015 projections will be updated quarterly; subject to volatility) • Net purchase accounting adjustments will be part of earnings through 2015 • Revenue includes loan accretion, securities amortization, CD accr
Slide 26: Noninterest Income Reflects Changes Related to Seasonality, Economy
Noninterest Income Reflects Changes Related to Seasonality, Economy • Noninterest income totaled $63.1 million, down $0.8 million linked-quarter • Results for trust, insurance, and investment and annuity fees reflected some seasonality in these lines of business and the impact of changes related to
Slide 27: Noninterest Expense Includes One-Time Items; Operating Expense Declines
Noninterest Expense Includes One-Time Items; Operating Expense Declines • Noninterest expense totaled $182.2 million in 3Q13 Includes $20.9 million of one-time costs mainly related to the expense & efficiency initiative • Noninterest expense excluding one-time costs (or operating expense) totaled $1
Slide 28: 1Q14 Expense Target Mainly Achieved Through Branch Closures and Sales
1Q14 Expense Target Mainly Achieved Through Previously Announced Branch Closures and Sales • Closed 26 banking locations across the 5-state footprint on August 30, 2013 • Will close 2 branches in 4Q13 • Expect the previously announced sale of 7 Houston branches to close in 4Q13** • Expect the previo
Slide 29: Efficiency & Process Improvement Initiative On Track
Efficiency & Process Improvement Initiative On Track • Committed to reducing noninterest expense in future $s in millions years by $50 million compared to annualized 1Q13 1Q13 noninterest $160 expense expense 50% attainment of goal by 1Q14 Annualized 1Q13 $640 noninterest expense 100% attainment of
Slide 30: Near Term Operating EPS Guidance
Near Term Operating EPS Guidance $0.60 • Volatility related to excess cash recoveries (included in loan $0.45 accretion totals) impacting quarterly operating EPS results $0.30 • Expect 4Q13 operating EPS will be flat to slightly down from 3Q13 as projections do not include excess cash recoveries $0.
Slide 31: Solid Capital Levels
Solid Capital Levels • TCE ratio 8.68% • Announced stock buyback of up to 5% of outstanding common stock Executed an accelerated share repurchase on May 9, 2013 Total transaction amount of $115 million Received approximately 2.8 million shares Impacted TCE ratio by 63 bps in 2Q13 Based on current st
Slide 32: Appendix
PES Hancock HoLOING COMPANY
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation $s in millions Three Three Three Nine Nine Months Months Months Months Months Ended Ended Ended Ended Ended 9/30/2013 6/30/2013 9/30/2012 9/30/2013 9/30/2012 Net income $33.2 $46.9 $47.0 $128.6 $104.8 Adjustments from net to operating income Securities transactions gains/(los
Slide 34: Additional Loan Data
Additional Loan Data $s in millions 9/30/2013 6/30/2013 $ change % change 9/30/2012 $ change % change Oil & Gas Portfolio* 9/30/13 Loans (EOP) $ 11,735 $ 11,682 $ 53 0% $ 11,434 $ 300 3% Commercial 4,625 4,653 (28) -1% 4,236 390 9% Construction 920 967 (46) -5% 1,045 (124) -12% Real Estate 2,915 2,8
Slide 35: Third Quarter 2013 Financial Results
Third Quarter 2013 Financial Results October 24, 2013