Hancock Whitney Corporation · NASDAQ:HWC
Hancock Whitney — Hancock Holding — Non-Deal Roadshow (December 2014)
28 slides from Hancock Whitney's roadshow presentation, Dec 2, 2014
Slide 1: Investor Meetings
Exhibit 99.1 Investor Meetings December 2014
Slide 2: Forward Looking Statement
Forward Looking Statement 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 3: Hancock Holding Company
Hancock Holding Company • $20 billion in Total Assets • $13.3 billion in Total Loans • $15.7 billion in Total Deposits • ROA (operating) 1.00% • ROTCE (operating) 11.28% • NIM 3.81% • Efficiency Ratio 61.84% • TCE 9.10% • Rated among the strongest, safest financial institutions in the country by Bau
Slide 4: Third Quarter 2014 Highlights
Third Quarter 2014 Highlights • Operating income $49.1 million or $.59 per diluted common ($s in millions; except per share 3Q14 2Q14 LQ share, flat linked-quarter data) change • Core income $41.2 million or $.49 per diluted common share, Operating Income $49.1 $49.6 -1% up 6.5% linked-quarter Earni
Slide 5: Improving Trends in Core Results; Narrowing The Gap Between Reported and Core
Improving Trends in Core Results; Narrowing The Gap Between Reported and Core E.P.S. ROA $0.70 1.20% 1.03% 1.05% 1.04% $0.58 $0.59 $0.59 1.00% $0.60 0.99% 0.99% 0.97% $0.56 $0.55 $0.56 $0.55 1.00% $0.49 0.82% 0.84% $0.50 0.80% $0.45 $0.46 0.80% 0.70% $0.39 $0.40 0.62% 0.64% 0.61% $0.36 $0.34 $0.34 0
Slide 6: Less Than $8 Million Quarterly Gap Between Operating and Core Net Income
Less Than $8 Million Quarterly Gap Between Operating and Core Net Income Replaced $11.5 million of quarterly PAA income with core earnings since 1Q13 (after-tax) $48.6 $49.1 $49.6 $49.1 $50 $46.9 $46.8 $45.8 $41.2 $38.7 $40 $37.7 $32.8 $30.3 $29.2 $28.7 $30 $20 $19.4 $18.1 $16.6 $13.0 $10 $11.4 $10.
Slide 7: Switch From Expense Reductions To Revenue Growth In Offsetting Declining PAA
Switch From Expense Reductions To Revenue Growth In Offsetting Declining PAA $210 $200 12 Branch Insurance 26 Branch Sales/Closures Business Lines Closures Divestiture $205 $190 $200 $180 $195 $170 $190 $160 $185 $150 $180 $140 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Core Revenue $200 $203 $202 $201 $201
Slide 8: Loans Have Grown Steadily Since 1Q13
Loans Have Grown Steadily Since 1Q13 Consumer • Excluding FDIC covered loans, total loans of $13.1 $1,706 13% Total Loans $13,349 million billion were up $488 million, or 16% LQA Mortgage 9/30/14 C&I $5,587 $1,858 42% 14% • All markets across the franchise reported net loan growth during the quarter
Slide 9: Solid Asset Quality Metrics
Solid Asset Quality Metrics • Nonperformingassets totaled $147 million, down $10 million from June 30, 2014 – Nonperforming loans declined $6.7 million linked-quarter – ORE and foreclosed assets declined $3.6 million linked-quarter – NPA ratio 1.10%, down from 1.22% linked-quarter • The allowance fo
Slide 10: Oil & Gas Portfolio Strong; Monitoring For Signs of Stress
Oil & Gas Portfolio Strong; Monitoring For Signs of Stress • Relationship business dating back to post WWII • Excellent source of no/low cost core deposits • Diversified portfolio with concentration limits for individual categories • High credit quality portfolio with historically low loss rates; di
Slide 11: Securities Portfolio No Longer Funding Loan Growth
Securities Portfolio No Longer Funding Loan Growth Securities Portfolio • Portfolio totaled $3.9 billion, up $236 million U. S. Agencies Mix 9/30/14 and other linked-quarter $312 CMO 8% $1,232 • Yield 2.36% for 3Q14, down 7 bps linked- 32% Munis quarter $202 5% • Unrealized gain (net) of $22.1 milli
Slide 12: Stronger Levels Of Core Deposit Funding
Stronger Levels Of Core Deposit Funding • Total deposits $15.7 billion, up $491 million, or 3%, linked-quarter; linked- Total Deposits $15,737 million quarter increase related to: Time deposits $2,010 9 /30/14 13% Noninterest • $143 million increase in noninterest-bearing demand deposits (DDA) beari
Slide 13: Relatively Stable Core NIM
Relatively Stable Core NIM • Reported net interest margin (NIM) 3.81%, down 18 bps linked-quarter; $5 million decline in purchase accounting loan accretion • Core NIM declined 3 bps – Decline in core loan yield (-3bps) and decline in the securities portfolio yield (-7bps) impacted NIM – Decline in c
Slide 14: Sizeable Declines in Purchased Loan Accretion Expected in Future Quarters
Sizeable Declines in Purchased Loan Accretion Expected in Future Quarters Impact of Purchase Accounting Adjustments (projections will be updated quarterly; subject to change) $s in millions Projected PAA Revenue Reflects Sizeable Quarterly Declines in 4Q14 and 1Q16 Due To Lower Loan Accretion Totals
Slide 15: Core Noninterest Income Increased Linked-Quarter
Core Noninterest Income Increased Linked-Quarter • Noninterest income, including securities transactions, totaled Other Fee Mix 3Q14 Service $5.0 Charges on $57.9 million, up $1.5 million linked-quarter Secondary mortgage 9% 0% Deposit operations $20.0 – Amortization of the indemnification asset for
Slide 16: Continuing To Manage To A Lower Level Of Operating Expense
Continuing To Manage To A Lower Level Of Operating Expense • Operating expense totaled $145.2 million in 3Q14, virtually unchanged linked-quarter Operating Expense Mix 3Q14 • 3Q14 operating expense excludes $3.9 million of nonoperating expenses mainly related to the Amortization ongoing expense and
Slide 17: Targeted Efficiency Ratio: Below 60% By 2016
Targeted Efficiency Ratio: Below 60% By 2016 • Continuing to manage expenses in the near-term, however expenses may rise over the next couple of quarters as investments in higher-return, revenue-generating lines of business are made • Remain committed to keeping expenses in line with expectations; e
Slide 18: Recent Revenue Initiatives
Recent Revenue Initiatives • Continuing to invest in automation that will lead to additional efficiency and improvements in officer productivity – Business model changes in Indirect Lending have led to volumes and yield improvement – Process and credit automation improvements are increasing volumes
Slide 19: Solid Capital Levels
Solid Capital Levels • TCE ratio 9.10%, down 19 bps linked-quarter related to organic Tangible Common Equity (TCE) Ratio 9.50% balance sheet growth and common stock buyback 9.00% • New 5% common stock buyback 8.50% authorized by the Board of Directors 8.00% in July 2014 — Approximately 4 million sha
Slide 20: Near-Term Outlook
Near-Term Outlook 3Q14 Items to note Outlook Loans +16% LQA Excludes covered 10-14% LQA EOP growth for 4Q14 +15% Y-o-Y portfolio 8-12% EOP growth for full year 2015 Purchase $12.1 million Includes items $6 million decline in PAA revenue next quarter Accounting pre-tax impacting revenue (see slide 14
Slide 21: Appendix: Operating Under Two Century-Old Brands
Appendix: Operating Under Two Century-Old Brands Whitney Bank locations Hancock Bank locations 21
Slide 22: Appendix: EPS calculation
Appendix: EPS calculation $s in thousands, except E.P.S. Three Three Three Months Months Months Ended Ended Ended 9/30/14 6/30/14 9/30/13 Operating income to common shareholders $49,079 $49,575 $46,779 Income allocated to participating securities (931) (1,016) (891) Operating income allocated to com
Slide 23: Appendix: Purchase Accounting Adjustments Core NII & NIM Reconciliation
Appendix: Purchase Accounting Adjustments Core NII & NIM Reconciliation ($s in millions) 3Q14 2Q14 1Q14 4Q13 3Q13 Net Interest Income (TE) – reported (NII) $166.2 $167.3 $168.2 $168.5 $174.1 Whitney expected loan accretion (performing) 5.0 5.8 6.7 9.3 10.4 Whitney expected loan accretion (credit imp
Slide 24: Appendix: Non-GAAP Reconciliation (Net Income, ROA, E.P.S.)
Appendix: Non-GAAP Reconciliation (Net Income, ROA, E.P.S.) $s in millions Three Months Three Months Three Months Ended 9/30/14 Ended 6/30/14 Ended 9/30/13 Net income $46.6 $40.0 $33.2 Adjustments from net to operating income Securities transactions gains/(losses) - - - Total nonoperating expense it
Slide 25: Appendix: Additional Loan Data
Appendix: Additional Loan Data $s in millions 9/30/2014 6/30/2014 $ change % change LQA 9/30/2013 $ change % change Loans (EOP) $ 13,349 $ 12,884 $ 465 4% 14% $ 11,734 $ 1,614 14% Commercial 5,587 5,394 193 4% 14% 4,625 962 21% Construction 1,096 1,041 55 5% 21% 920 175 19% Real Estate 3,101 3,056 4
Slide 26: Appendix: Whitney Portfolio Continues Solid Performance
Appendix: 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 accreti
Slide 27: Appendix: Peoples First Loan Mark Used For Charge-Offs
Appendix: 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 r
Slide 28: Investor Meetings
Investor Meetings December 2014