Hancock Whitney Corporation · NASDAQ:HWC
Hancock Whitney — Hancock Holding — Sandler O'Neill East Coast Financial Services Conference 2011
27 slides from Hancock Whitney's conference presentation, Nov 10, 2011
Slide 1: Sandler O'Neill East Coast Financial Services Conference
Sandler O’Neill Sandler O’Neill East Coast Financial Services Conference East Coast Financial Services Conference November 10, 2011 November 10, 2011
Slide 2: Carl J. Chaney, President & CEO
Carl J. Chaney President & CEO Carl J. Chaney President & CEO
Slide 3: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements During this presentation we may make forward-looking statements. During this presentation we may make forward-looking statements. Forward-looking statements provide projections of results of operations or of financial condition or state other for
Slide 4: Hancock Holding: The Premier Gulf South Financial Services Franchise
Hancock Holding The Premier Gulf South Financial Services Franchise Hancock Holding ü Leadership position in the Gulf South ü Diversified revenue stream with strong earnings momentum ü Loyal customer base and attractive deposit funding ü Commanding presence in attractive markets that we know ü Highl
Slide 5: Diversified Footprint Across The Gulf South
Diversified Footprint Across The Gulf South As of September 30, 2011 Leading Position In Key Markets; Building A Presence In Other Attractive Markets • 2-bank Holding Company – Hancock Bank – Whitney Bank • 5-state footprint • $19B in assets • $11B in loans • $15B in deposits • ~300 branches • ~400
Slide 6: Whitney Acquisition
Whitney Acquisition Whitney Acquisition • Closed June 4, 2011 • Purchase price $1.6B • Added $11.7B in assets, $6.5B in loans and $9.2B in deposits • Integration continues to progress as scheduled • Main systems conversion scheduled for 1Q12 • Total pre-tax restructuring charge approximately $125 mi
Slide 7: Branch Divestiture Complete
Branch Divestiture Complete Branch Divestiture Complete • Required by the Department of Justice to resolve branch concentration concerns • Completed on September 16, 2011 • Sold eight Whitney branches – 7 on the Mississippi Gulf Coast – 1 in Bogalusa, Louisiana • Sale included approximately $47 mill
Slide 8: Harvesting Cost Synergies
Harvesting Cost Synergies ü Realized approximately $15 million in cost synergies in 3Q11 compared to proforma 3Q10 – 45% of target (annualized) ü Synergies will level out over the next couple of quarters until systems conversion is completed ü Remain confident we will meet total projected annual cos
Slide 9: Cultivating Revenue Prospects
Cultivating Revenue Prospects Cultivating Revenue Prospects • Opportunities for cross-selling legacy Hancock and Whitney products are being cultivated • Key lines of business are: – Treasury Management – International Banking – Insurance and Private Banking • Successfully added new business across t
Slide 10: Michael M. Achary, CFO
Michael M. Achary CFO Michael M. Achary CFO
Slide 11: 3Q11 Earnings Summary
3Q11 Earnings Summary ($s in millions; except per share data) 3Q11 2Q11 Operating Income* $45.2 $26.6 Operating E.P.S. (diluted)* $.53 $.48 Return on Assets (operating)* 0.92% 0.92% Merger Costs $22.8 $22.2 Net Income $30.4 $12.1 Earnings Per Share (diluted) $.36 $.22 Pre-Tax, Pre-Provision Income*
Slide 12: Customer Retention Remains A Priority
Customer Retention Remains A Priority • Total loans $11.1B • Balanced portfolio – C&I Exposure 45% – CRE Exposure 28% – Mortgage & Consumer Exposure 27% • Decline of $147 million, or 1%, linked-quarter – Approximately $47 million related to branch divestiture – Approximately $60 million related to t
Slide 13: Strong Core Deposit Funding
Strong Core Deposit Funding 1Q12 1.49% • Total deposits $15.3B • Decline of $296 million linked-quarter – Approximately $180 million related to branch divestiture – Approximately $73 million related to runoff in the Peoples First CD portfolio – Approximately $160 million decline in seasonal public f
Slide 14: Improved Net Interest Margin
Improved Net Interest Margin • 3Q11 net interest margin 4.32% up 21bps linked-quarter – Approximately 24bps of the NIM was related to net accretion of purchase accounting adjustments (8bps in 2Q11) – Accretion of the loan discount and amortization of the fair value adjustments on the securities and
Slide 15: Credit Quality Metrics Remain Solid
Credit Quality Metrics Remain Solid • Allowance for loan losses was $118 million, up from $112 million at June 30, 2011 • Provision for loan losses was $9.3 million – $9.1 million for non-covered loans – $0.2 million for FDIC covered loans • Net charge-offs totaled $7.8 million • ALLL/loans was 1.86
Slide 16: Cross-Sell Opportunities
Cross-Sell Opportunities • Noninterest income totaled $65 million in 3Q11 – No significant changes to recurring sources of income • Impact from new interchange rates related to the Durbin amendment could lower noninterest income by: – Approximately $2 - $3 million for the remainder of 2011 – Approxi
Slide 17: Focused On Efficiency Targets
Focused On Efficiency Targets • Noninterest expense totaled $194 million in 3Q11 – Merger-related expenses totaled $22.8 million – Amortization of intangibles totaled $7.1 million • Realized approximately $15 million in cost synergies in 3Q11 compared to proforma 3Q10 – 45% of target (annualized) •
Slide 18: Working Towards ROA Target
Working Towards ROA Target $s in millions 3Q11 GAAP 3Q11 Operating Proforma 3Q11 Operating plus additional quarterly cost savings Net interest income 177.0 177.0 177.0 Provision for loan losses 9.3 9.3 9.3 Noninterest income 65.0 65.0 65.0 Noninterest expense 194.0 194.0 194.0 Merger costs -- (22.8)
Slide 19: Carl J. Chaney, President & CEO
Carl J. Chaney President & CEO Carl J. Chaney President & CEO
Slide 20: Proud History of Conservative Banking
Honor & Integrity Strength & Stability Commitment to Service Teamwork Personal Responsibility Proud History of Conservative Banking n Conservative approach to banking since 1899 ― 50 years of continuous profitability ― Never missed or lowered our dividend n Our culture defines how we run our bank ―
Slide 21: Ample Capital
Ample Capital Ø Total equity $2.4 billion at September 30 Ø TCE ratio improved 45bps to 8.56% linked-quarter Ø Expect to build capital in the near term – Current focus is on completing Whitney integration Ø TCE ratio target: 8% minimum Ø Will review opportunities to deploy excess capital post integr
Slide 22: Well Positioned For The Future
Well Positioned For The Future Ø Creates dominant Gulf South leader Ø History of effective capital management Ø Superior liquidity Ø Excellent asset quality and conservative culture Ø Management and leadership in place Ø Focused on integration Ø Enhanced earnings potential Ø Well positioned for futu
Slide 23: Sandler O'Neill East Coast Financial Services Conference
Sandler O’Neill Sandler O’Neill East Coast Financial Services Conference East Coast Financial Services Conference November 10, 2011 November 10, 2011
Slide 24: rig
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Slide 25: Purchase Accounting Items
Purchase Accounting Items • Impact of the acquisition is reflected in 2Q11 financial information from the acquisition date, or only 26 days • Whitney’s balance sheet was “marked” to fair value at acquisition • Whitney’s allowance for loan losses at acquisition date of $208 million was not carried fo
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation
Slide 27: Investor Contacts
Investor Contacts Investor Contacts Carl J. Chaney - President & CEO carl_chaney@hancockbank.com Michael M. Achary - EVP & CFO michael_achary@hancockbank.com Trisha Voltz Carlson - SVP, Investor Relations trisha_carlson@hancockbank.com Hancock Holding Company P.O. Box 4019, Gulfport, MS 39502 Phone:
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