Hancock Whitney Corporation · NASDAQ:HWC
Hancock Whitney — Hancock Holding — Q3 2016 Earnings Presentation
33 slides from Hancock Whitney's earnings presentation, Oct 18, 2016
Slide 1: Third Quarter 2016 Earnings Conference Call
Click To Edit Master Title Style 10/19/2016 Third Quarter 2016Earnings Conference Call
Slide 2: Important Cautionary Statement About Forward-Looking Statements
Important Cautionary Statement About Forward-Looking Statements This presentation contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements that we ma
Slide 3: Corporate Profile
Corporate Profile (as of September 30, 2016) $23.1 billion in Total Assets$16.1 billion in Total Loans$18.9 billion in Total DepositsTangible Common Equity (TCE) 7.93%Nearly 200 banking locations and 266 ATMs across our footprintApproximately 3,800 employees corporate-wideRated among the strongest,s
Slide 4: Third Quarter 2016 Highlights
(compared to second quarter 2016) Third Quarter 2016 Highlights Stable earningsRevenue relatively stableNoninterest expenses down $1.9 millionLoan loss provision of $19.0 million, compared to $17.2 million; includes impact of recent SNC exam; no significant impact from August 2016 flooding in south
Slide 5: Core PTPP income growth
Year-over-year growth in core PTPP income +22%Linked-quarter growth in core PTPP income +1% $s in millions On Track to Beat 2016 Core PTPP Goal See slide 25 for non-GAAP reconciliation
Slide 6: Well-Diversified Loan Portfolio
Well-Diversified Loan Portfolio Loans totaled $16.1 billion at quarter-end, an increase of $35 million linked-quarterNet change reflects $81 million net decrease in energy-related loansNet loan growth during the quarter was in areas such as healthcare lending, equipment finance and mortgage lending;
Slide 7: Over Half Of Our Footprint Not Impacted By Energy
Over Half Of Our Footprint Not Impacted By Energy Main markets impacted by energy
Slide 8: Energy Portfolio Overview
Energy Portfolio Overview Energy loans totaled $1.4 billion, or 8.7% of total loans, down $81 million linked-quarter and down $260 million from a year agoLinked-quarter change reflects approximately $141 million in payoffs and paydowns, plus approximately $5 million in charge-offs, partially offset
Slide 9: Energy Portfolio Overview (cont'd)
Energy Portfolio Overview (cont’d) Net decrease in outstandings of $81 million linked-quarter and a $135 million reduction in total commitments$44 million linked-quarter decrease in upstream outstandings and a $74 million reduction in total commitments $28 million linked-quarter decrease in support
Slide 10: Energy Portfolio Overview (cont'd)
Energy Portfolio Overview (cont’d)
Slide 11: Energy Allowance and Category Trends
Energy Allowance and Category Trends Management continues to estimate 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 – Sept ‘16) total approximately $30 million; includes $4.4 million
Slide 12: Asset Quality Measures Reflect Impact Of Energy Cycle
Asset Quality Measures Reflect Impact Of Energy Cycle NPA ratio 2.06%, up 4 bps linked-quarter Nonperforming assets totaled $331 million, up $6 million from June 30, 2016Nonperforming energy loans totaled $199 million at September 30, 2016, up slightly from last quarterProvision for loan losses was
Slide 13: Allowance For Loan Losses
Allowance For Loan Losses The allowance for loan losses (ALLL) was $236.1 million (1.47%) up $10 million from $226.1 million (1.41%) linked-quarterThe allowance maintained on the non-PCI portion of the loan portfolio increased approximately $10 million linked-quarter, totaling $216.4 million, while
Slide 14: Adequate Reserve Coverage
Adequate Reserve Coverage Management believes the nonenergy allowance is adequate as: Net nonenergy charge-offs (excluding People’s First) averaged $17.5 million annualized, or 0.15% of related average loans over past 15 quartersSensitivity testing used in our PLLL/ALLL forecasts included the consum
Slide 15: Securities Portfolio
Securities Portfolio Portfolio totaled $4.8 billion, up $37 million, or 1% linked-quarter Yield 2.34%, down 4 bps linked-quarterUnrealized net gain of $44.1 million on AFS51% HTM, 49% AFSDuration 3.78 compared to 3.39 at 6-30-16Premium amortization up $0.8 million linked-quarterBalance sheet is asse
Slide 16: Solid Levels Of Core Deposit Funding
Solid Levels Of Core Deposit Funding Total deposits $18.9 billion, up $69 million, relatively unchanged linked-quarterNoninterest-bearing demand deposits (DDA) increased $392 millionInterest-bearing transaction and savings deposits decreased $134 millionTime deposits decreased $229 million Public fu
Slide 17: Core NIM Relatively Stable
Core NIM Relatively Stable Reported net interest margin (NIM) 3.20% down 5 bps linked-quarter Core NIM of 3.12% decreased 3 bps linked-quarterCore loan yield -3 bps impacted by interest reversals on some creditsYield on bond portfolio -4 bps related to increase in premium bond amortizationCost of fu
Slide 18: Focus On Growing Core Noninterest Income Across Business Lines
Focus On Growing Core Noninterest Income Across Business Lines Noninterest income, including securities transactions, totaled $63.0 million, down $0.7 million, or 1%, linked-quarterAmortization of the indemnification asset for FDIC covered loans totaled $1.5 million, unchanged linked-quarter; the am
Slide 19: Revenue Generating Initiatives - Fees
Revenue Generating Initiatives - Fees $s in thousands
Slide 20: Quarterly Expenses Decreased; Remain Focused On Expense Control
Quarterly Expenses Decreased; Remain Focused On Expense Control Noninterest expenses totaled $149.1 million in 3Q16, down $1.9 million, or 1%, linked quarterPersonnel expense totaled $83.2 million, down $1.1 million, or 1%, linked-quarterOccupancy and equipment totaled $13.4 million, virtually uncha
Slide 21: Solid Capital Levels
TCE ratio 7.93%, up 12 bps linked-quarterBalance sheet change -2 bpsTangible earnings +23 bpsOCI & other, net -1 bpsDividends -8 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 22: Near-Term Outlook
Near-Term Outlook See slides 26 and 27 for non-GAAP reconciliation
Slide 23: Appendix/Non-GAAP Reconciliations
Appendix/Non-GAAP Reconciliations
Slide 24: 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 25: Appendix: Core Pre-Tax, Pre-Provision Reconciliation
Appendix: Core Pre-Tax, Pre-Provision Reconciliation
Slide 26: Appendix: Core Revenue Reconciliation
Appendix: Core Revenue Reconciliation
Slide 27: Appendix: Purchase Accounting Adjustments Core NII & NIM Reconciliation
Appendix: Purchase Accounting Adjustments Core NII & NIM Reconciliation
Slide 28: Appendix: Core Revenue
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Slide 29: Appendix: Operating Expense (excl nonoperating items)
Appendix: Operating Expense (excl nonoperating items)
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: 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 32: 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 33: Third Quarter 2016 Earnings Conference Call
Click To Edit Master Title Style 10/19/2016 Third Quarter 2016Earnings Conference Call