Slide 1: Financial highlights table
Net interest income (TE) (a) 171,165 168,179 154,879 339,344 315,993 Noninterest income 63,694 58,186 60,874 121,880 117,420 Net income 46,907 3,839 34,829 50,746 74,988 Loans $ 16,035,796 $ 15,978,124 $ 14,344,752 $ 16,035,796 $ 14,344,752 Earning assets 21,037,622 20,821,513 19,409,963 21,037,622
Slide 2: Second Quarter 2016 Financial Results
7/20/2016 Second Quarter 2016Financial Results
Slide 3: 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 4: Corporate Profile (as of June 30, 2016)
Corporate Profile (as of June 30, 2016) $23.1 billion in Total Assets$16.0 billion in Total Loans$18.8 billion in Total DepositsTangible Common Equity (TCE) 7.81%Nearly 200 banking locations and 275 ATMs across our footprintApproximately 3,800 employees corporate-wideRated among the strongest,safest
Slide 5: Second Quarter 2016 Highlights
(compared to first quarter 2016) Second Quarter 2016 Highlights Net income totaled $46.9 million or $.59 per diluted common shareCore pre-tax, pre-provision income $85.2 million, up $8.8 million or 12%Loans increased $58 million; energy loans decreased approximately $153 million linked-quarterEnergy
Slide 6: Growth in Core Pre-Tax Pre-Provision Income
Linked-quarter growth in core PTPP income +12%Year-over-year growth in core PTPP income +30% $s in millions Growth in Core Pre-Tax Pre-Provision Income
Slide 7: Well-Diversified Loan Growth
Well-Diversified Loan Growth Loans totaled $16.0 billion at quarter-end, an increase of $58 millionReflects $153 million net decrease in energy-related loansManagement expects loan growth of 5-7% for the full year of 2016 (period-end)Additional data provided on breakout between owner-occupied CRE lo
Slide 8: Over Half Of Our Footprint Not Impacted By Energy
Over Half Of Our Footprint Not Impacted By Energy Main markets impacted by energy
Slide 9: Energy Portfolio Overview
Energy Portfolio Overview Energy loans totaled $1.48 billion, or 9% of total loans, down $153 million linked-quarter and down $188 million from a year agoLinked-quarter change reflects approximately $180 million in payoffs and paydowns, plus $4 million in charge-offs, partially offset by approximate
Slide 10: Energy Portfolio Overview (cont'd)
Energy Portfolio Overview (cont’d) Net decrease in outstandings of $153 million linked-quarter and a $197 million reduction in total commitmentsApproximately $97 million linked-quarter decrease in upstream outstandings and a $104 million reduction in total commitments Approximately $36 million linke
Slide 11: Energy Portfolio Overview (cont'd)
Energy Portfolio Overview (cont’d)
Slide 12: Energy Allowance and Category Trends
Energy Allowance and Category Trends Management currently estimates that charge-offs from energy-related credits could approximate $65-$95 million over the duration of the cycleCharge-offs to-date for current energy cycle (Nov ‘14 – June ‘16) total $25 million; includes $4.0 million in 2Q16A portion
Slide 13: Asset Quality Measures Reflect Impact Of Energy Cycle
Asset Quality Measures Reflect Impact Of Energy Cycle NPA ratio 2.02%, up 10 bps linked-quarter Nonperforming assets totaled $325 million, up $18 million from March 31, 2016Nonperforming energy loans totaled $197 million at June 30, 2016, up $38 million from last quarterProvision for loan losses was
Slide 14: Allowance For Loan Losses
Allowance For Loan Losses The allowance for loan losses was $226.1 million (1.41%) up $8.3 million from $217.8 million (1.36%) linked-quarterThe allowance maintained on the non-PCI portion of the loan portfolio increased $9.2 million linked-quarter, totaling $206.5 million, while the allowance on th
Slide 15: Adequate Reserve Coverage
Adequate Reserve Coverage Management believes the nonenergy allowance is adequate as: Net nonenergy charge-offs (excluding People’s First) averaged $17 million or 0.14% of related average loans over past 14 quarters; nonenergy ALLL represents 5.5x coverage of average annual charge-offsSensitivity te
Slide 16: Securities Portfolio
Securities Portfolio Portfolio totaled $4.8 billion, up $139 million, or 3% linked-quarter Yield 2.38%, up 2 bps linked-quarterUnrealized net gain of $47.5 million on AFS52% HTM, 48% AFSDuration 3.39 compared to 3.69 at 3-31-16Premium amortization up $1.3 million linked-quarterBalance sheet is asset
Slide 17: Solid Levels Of Core Deposit Funding
Solid Levels Of Core Deposit Funding Total deposits $18.8 billion, up $161 million, or 1%, linked-quarterNoninterest-bearing demand deposits (DDA) increased $43 millionInterest-bearing transaction and savings deposits decreased $289 millionTime deposits increased $206 million Public fund deposits in
Slide 18: Core NIM Reflects Improving Asset Yields
Core NIM = reported net interest income (TE) excluding total net purchase accounting adjustments, annualized, as a percent of average earning assets. (See slide 27) Core NIM Reflects Improving Asset Yields Reported net interest margin (NIM) 3.25% up 2 bps linked-quarter Core NIM of 3.15% increased 3
Slide 19: Focus On Growing Core Noninterest Income Across Business Lines
Focus On Growing Core Noninterest Income Across Business Lines Noninterest income, including securities transactions, totaled $63.7 million, up $5.5 million, or 9%, linked-quarterAmortization of the indemnification asset for FDIC covered loans totaled $1.5 million, compared to $1.6 million in the fi
Slide 20: Revenue Generating Initiatives - Fees
Revenue Generating Initiatives - Fees $s in thousands
Slide 21: Quarterly Expenses Decreased; Remain Focused On Expense Control
Quarterly Expenses Decreased; Remain Focused On Expense Control Operating expenses totaled $150.9 million in 2Q16, down $0.1 million linked quarterPersonnel expense totaled $84.2 million, down $0.5 million, or 1%, linked-quarterOccupancy and equipment totaled $13.5 million, down $0.7 million, or 5%,
Slide 22: Solid Capital Levels
TCE ratio 7.81%, up 12 bps linked-quarterBalance sheet change -9 bpsTangible earnings +23 bpsOCI & other, net +7 bpsDividends -9 bpsWill continue to manage capital in the best interest of the Company and its shareholders through the prolonged energy cycleTop priorities are funding organic growth and
Slide 23: Near-Term Outlook
Near-Term Outlook Loans +1% LOA Includes net decrease _ 5-7% EOP growth for full year 2016 412% Y-0-Y of $153 millionin energy-related loans Net interest Margin 3.25% reported Reported up 2bps; Expect stable reported and core NIM (NIM) 3.15% core Core up 3bps Core Revenue $231.1 million Excludes PAA
Slide 24: 2016 Strategic Objectives
2016 Strategic Objectives As we have previously noted, the company’s 2016 objectives are:Loan growth 5-7% (EOP)Fund loan growth primarily with depositsBias toward lower end of range should elevated levels of energy paydowns continueCore pre-tax, pre-provision growth of 25% compared to 2014Assumes no
Slide 25: Management Focus Points
Management Focus Points Simplification of structure; recent management streamlining and structure changes have yielded efficienciesExpense discipline; successfully reduced expenses in previous yearsEvaluating business lines for profitability; previously exited unprofitable business lines Revenue-gen
Slide 26: Appendix
Appendix @¥ Hancock Holding Company
Slide 27: Appendix: EPS Calculation
Appendix: EPS Calculation See Note 13 in the most recent 10K for more details on the two-class method for E.P.S. calculation.
Slide 28: Appendix: Purchase Accounting Adjustments Core NII & NIM Reconciliation
Appendix: Purchase Accounting Adjustments Core NII & NIM Reconciliation
Slide 29: Appendix: Historical Energy Data
Appendix: Historical Energy Data $s in millions Energy Outstandings by Type $1,724 $1,674 $1,669 $1,660 $1,580 $1,633
Slide 30: Impact of Purchase Accounting Adjustments
Impact of Purchase Accounting Adjustments(projections will be updated quarterly; subject to change) Appendix: Purchase Accounting Impact/Trend *Projected revenue includes loan accretion from Whitney and Peoples First, offset by amortization of the Whitney bond portfolio premium and amortization of t
Slide 31: Appendix: Core Pre-Tax, Pre-Provision Reconciliation
Appendix: Core Pre-Tax, Pre-Provision Reconciliation
Slide 32: Core Revenue
Core Revenue Net interest Income TE (core) ® 3 2 § g g 3 2 = 130,000 Toe | ae | sae [ae rae | con | con | ae [roe | aoe | soe woe | os | am | sae | ace | rae | 2a (Eee recat] ion 207 [ise 060 [140.735 | var.a00 | taneer | 100000 | toase2 | to0.900 | 120920 | ta0sre | taarae | varsve | tas.rer | tar.
Slide 33: Appendix: Operating Expense (excl nonoperating items)
Appendix: Operating Expense (excl nonoperating items)
Slide 34: Appendix: Glossary of Terms
Appendix: Glossary of Terms LPO – Loan production officeLQA- Linked-quarter annualizedM&A – Mergers and acquisitionsNII – Net interest income NIM – Net interest marginNPA – Nonperforming assetsO&G – Oil and gasORE – Other real estatePAA – Purchase accounting adjustments, including loan accretion fro
Slide 35: Second Quarter 2016 Financial Results
7/20/2016 Second Quarter 2016Financial Results