Hancock Whitney Corporation · NASDAQ:HWC
Hancock Whitney — Hancock Holding — Q1 2013 Earnings Presentation
34 slides from Hancock Whitney's earnings presentation, Apr 25, 2013
Slide 1: Hancock reports first quarter 2013 financial results
Exhibit 99.1 For Immediate Release April 25, 2013 For More Information Trisha Voltz Carlson SVP, Investor Relations Manager 504.299.5208 trisha.carlson@hancockbank.com Hancock reports first quarter 2013 financial results Announces $50 million efficiency and process improvement initiative GULFPORT, M
Slide 2: CEO comments on efficiency initiative and results
Hancock reports first quarter 2013 financial results April 25, 2013 “While it is appropriate to look back on the past year and recognize our associates’ hard work in completing the core systems conversion and achieving our merger cost synergies, we must now focus on Hancock’s future as one strong co
Slide 3: Highlights & Key Operating Items
Hancock reports first quarter 2013 financial results April 25, 2013 Highlights & Key Operating Items from Hancock’s First Quarter Results Total assets were $19.1 billion at March 31, 2013, a decrease of $400 million from December 31, 2012. The decrease is partly related to the seasonal and short-ter
Slide 4: Asset Quality
Hancock reports first quarter 2013 financial results April 25, 2013 Asset Quality Non-performing assets (NPAs), which exclude loans that were credit impaired at the time of the Whitney and People’s First acquisitions, totaled $229 million at March 31, 2013, down $27 million from $256 million at Dece
Slide 5: Net Interest Income
Hancock reports first quarter 2013 financial results April 25, 2013 During the first quarter of 2013 the Company recorded an $8.5 million impairment on certain pools of covered loans, with a related increase of $1.9 million in the Company’s FDIC loss share receivable. Approximately $6.5 million of t
Slide 6: Non-interest Income
Hancock reports first quarter 2013 financial results April 25, 2013 Non-interest Income Non-interest income totaled $60.2 million for the first quarter of 2013, down $4.7 million, or 7%, from the fourth quarter of 2012. Included in the fourth quarter of 2012 was $.6 million of securities transaction
Slide 7: Conference Call and Slide Presentation
Hancock reports first quarter 2013 financial results April 25, 2013 Conference Call and Slide Presentation Management will host a conference call for analysts and investors at 9:00 a.m. Central Time Friday, April 26, 2013 to review the results. A live listen-only webcast of the call will be availabl
Slide 8: Financial Highlights
Hancock Holding Company Financial Highlights (amounts in thousands, except per share data and FTE headcount) (unaudited) Three Months Ended 3/31/2013 12/31/2012 3/31/2012 Per Common Share Data Earnings per share: Basic $ 0.56 $ 0.55 $ 0.22 Diluted $ 0.56 $ 0.54 $ 0.21 Operating earnings per share: (
Slide 9: Financial Highlights: Asset Quality Information
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended 3/31/2013 12/31/2012 3/31/2012 Asset Quality Information Non-accrual loans (c) $ 115,289 $ 121,837 $ 111,378 Restructured loans (d) 34,390 32,215 19,926 Total non-performing loans 149,679 154,052 131,3
Slide 10: Financial Highlights: Income Statement
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended 3/31/2013 12/31/2012 3/31/2012 Income Statement Interest income $ 185,272 $ 191,140 $ 191,716 Interest income (TE) 187,998 194,075 194,665 Interest expense 11,257 11,275 15,428 Net interest income (TE)
Slide 11: Financial Highlights: Period-end Balance Sheet
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended 3/31/2013 12/31/2012 3/31/2012 Period-end Balance Sheet Commercial non-real estate loans $ 4,425,286 $ 4,433,288 $ 3,754,592 Construction and land development loans 992,820 989,306 1,285,214 Commercial
Slide 12: Financial Highlights: Average Balance Sheet
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended 3/31/2013 12/31/2012 3/31/2012 Average Balance Sheet Commercial non-real estate loans $ 4,406,207 $ 4,316,455 $ 3,780,412 Construction and land development loans 975,301 1,035,401 1,267,192 Commercial
Slide 13: Supplemental Asset Quality Information
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Supplemental Asset Quality Information (excluding covered assets and acquired loans)k 3/31/2013 12/31/2012 3/31/2012 Non-accrual loans (l) (m) $ 82,194 $ 87,651 $100,192 Restructured loans (n) 28,689 27,451 19,926 Total
Slide 14: Average Balance and Net Interest Margin Summary
Hancock Holding Company Average Balance and Net Interest Margin Summary (amounts in thousands) (unaudited) Three Months Ended 3/31/2013 12/31/2012 3/31/2012 Interest Volume Rate Interest Volume Rate Interest Volume Rate Average Earning Assets Commercial & real estate loans (TE) $113,296 $ 8,277,057
Slide 15: First Quarter 2013 Financial Results
First Quarter 2013 Financial Results April 25, 2013
Slide 16: 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 17: First Quarter 2013 Results
First Quarter 2013 Results ($s in millions; except per share data) 1Q13 4Q12 change Net Income $48.6 $47.0 +3% Earnings Per Share (diluted) $.56 $.54 +4% Return on Assets 1.03% .99% +4bps Return on Tangible Common Equity 12.04% 11.58% +46bps Operating Income* $48.6 $46.6 +4% Operating E.P.S. (dilute
Slide 18: First Quarter 2013 Summary
First Quarter 2013 Summary • Net income $48.6 million or $.56 per diluted common share • Included in the Company’s first quarter of 2013 results are: • Approximately $7.5 million pre-tax, or $.06 per diluted common share, of higher than expected loan accretion related to cash collected on zero carry
Slide 19: Efficiency & Process Improvement Initiative
Efficiency & Process Improvement Initiative • Announced an efficiency and process improvement initiative $s in millions • Part of the Company’s updated long-term Strategic Plan 1Q13 non-interest $160 • Most effective way of operating the consolidated organization expense Short-term efficiency improv
Slide 20: Growth Continues In C&I Portfolio, Energy Lending
Growth Continues In C&I Portfolio, Energy Lending • Total loans $11.5B; down $95 million, or less than 1% linked-quarter • Seasonal reductions in demand from some C&I customers in the first quarter • New loan activity in many markets across the footprint, especially Houston, Florida and Louisiana •
Slide 21: Strong Core Deposit Funding
Strong Core Deposit Funding • Total deposits $15.3 billion, down approximately $500 million linked-quarter • Decrease related mainly to seasonal trends and maturity of $100 million of brokered CDs • Funding mix remained strong – Noninterest-bearing demand deposits (DDA) comprised 36% of total period
Slide 22: Net Interest Margin Impacted By Earning Asset Repricing
Net Interest Margin Impacted By Earning Asset Repricing • Reported net interest margin (NIM) 4.32%, down 16bps linked-quarter • Core NIM compressed 20bps – Increase in net purchase accounting adjustments, mainly from the Whitney transaction, positively impacted net interest income and NIM – Continue
Slide 23: Core NIM Compression Related to Lower Earning Asset Yields
Core NIM Compression Related to Lower Earning Asset Yields *Core loan yields exclude purchase accounting accretion 9
Slide 24: Whitney Portfolio Continues Solid Performance
Whitney Portfolio Continues Solid Performance • FAS 91 mark accreted into earnings over the life of the portfolio • Credit impaired 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 re
Slide 25: 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 26: Efficiency Improvements Will Offset Loss of Purchase Accounting Adjustments
Efficiency Improvements Will Offset Loss of Purchase Accounting Adjustments Impact of Purchase Accounting Adjustments and Efficiency Initiative 2012-2015 (2013-2015 projections will be updated quarterly; subject to volatility) • Net purchase accounting adjustments will be ‘sizeable’ part of earnings
Slide 27: Working To Enhance Fee Growth
Working To Enhance Fee Growth • Noninterest income totaled $60.2 million, down $4.7 million linked-quarter • 4Q12 includes $.6 million of securities gains • Service charges on deposits totaled $19.0 million, down $1.2 million from the fourth quarter of 2012. • The linked-quarter decline reflects: •
Slide 28: Long-Term Efficiency Ratio Target Set
Long-Term Efficiency Ratio Target Set • Non-interest expense totaled $159.6 million, up $1.7 million, or 1%, from 4Q12 – Amortization of intangibles totaled $7.6million • Personnel expense increased $.6 million • Other operating expense totaled $46.5 million, up $1.4 million from 4Q12 • Increases ar
Slide 29: Improved Asset Quality Metrics
Improved Asset Quality Metrics • Provision for loan losses was $9.6 million, down $18.5 million from 4Q12 • 4Q12 includes $13.7 million related to the bulk loan sale • 1Q13 includes $6.6 million impact from FDIC-covered loan portfolio • 1Q13 includes $3.0 million for the non-covered loan portfolio •
Slide 30: Improved Asset Quality Metrics
Improved Asset Quality Metrics • Nonperforming assets totaled $229 million, a decrease of $27 million linked-quarter • Nonaccrual loans down $6.5 million • Restructured loans increased $2.1 million • ORE and foreclosed assets down $22.4 million • Management will continue to evaluate the costs and be
Slide 31: Solid Capital Levels
Solid Capital Levels • TCE ratio 9.14% at March 31, 2013 • Expect to continue to build capital in the near term • Will continue to look for opportunities to deploy excess capital and liquidity in the best interest of the Company and its shareholders • Will evaluate: • Stock buyback • Organic growth
Slide 32: Appendix
a Hancock Bank Gwvurrser 18
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation (amounts in thousands) (unaudited) Three Months Ended 3/31/2013 12/31/2012 3/31/2012 Income Statement Interest income $185,272 $191,140 $191,716 Interest income (TE) 187,998 194,075 194,665 Interest expense 11,257 11,275 15,428 Net interest income (TE) 176,741 182,800 179,237
Slide 34: First Quarter 2013 Financial Results
First Quarter 2013 Financial Results April 25, 2013