Hancock Whitney Corporation · NASDAQ:HWC
Hancock Whitney — Hancock Holding — Keefe, Bruyette & Woods 2011 Community Bank Conference
28 slides from Hancock Whitney's conference presentation, Aug 2, 2011
Slide 1: Hancock Holding Company - KBW 2011 Community Bank Conference
Hancock Holding Company Hancock Holding Company Keefe, Bruyette & Woods Keefe, Bruyette & Woods 2011 Community Bank Conference 2011 Community Bank Conference August 2, 2011 August 2, 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. Forward-looking statements provide projections of results of operations or of financial condition or state other forward-looking information, such as expectations about future condi
Slide 4: Whitney Acquisition Complete
Whitney Acquisition Complete Whitney Acquisition Complete • Closed June 4, 2011 • Purchase price $1.6B • $308 million paid to the U.S. Treasury for Whitney’s preferred stock and warrants • 40.8 million shares of Hancock common stock issued for Whitney’s outstanding common stock • Added $11.7B in ass
Slide 5: The New Hancock: Strategic Rationale
The New Hancock Whitney Acquisition Solidifies Premier Gulf South Financial Services Franchise Strategic Rationale Attractive Returns Low Risk Transaction The New Hancock ü Leadership Position in the Gulf South ü Diversified Revenue Stream with Strong Earnings Momentum, Loyal Customer Base and Attra
Slide 6: Diversified Footprint Across The Gulf South
Diversified Footprint Across The Gulf South Diversified Footprint Across The Gulf South As of June 30, 2011 Hancock Whitney Leading Position In Key Markets; Building A Presence In Other Attractive Markets • 2-bank Holding Company – Hancock Bank – Whitney Bank • 5-state footprint • $20B in assets • $
Slide 7: Michael M. Achary, CFO
Michael M. Achary CFO Michael M. Achary CFO
Slide 8: 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 $208 million was not carried fo
Slide 9: 2Q11 Financial Results
2Q11 Financial Results ($s in millions) 2Q11 1Q11 2Q10 Operating Income* $26.6 $16.4 $7.6 Operating E.P.S. (diluted)* $.48 $.44 $.21 Return on Assets (operating)* 0.92% 0.81% 0.36% Net Income $12.1 $15.3 $6.5 Earnings Per Share (diluted) $.22 $.41 $.17 Pre-Tax, Pre-Provision Income* $49.5 $32.4 $35.
Slide 10: Balanced Loan Portfolio
Balanced Loan Portfolio • Total loans of $11.2B at June 30, 2011 • $463 million (6.7%) loan discount (“mark”) • Balanced Portfolio – C&I Exposure 45% – CRE Exposure 28% – Mortgage & Consumer Exposure 27% • Positioned for rising rates As of June 30, 2011
Slide 11: Strong Core Deposit Funding
Strong Core Deposit Funding • Total deposits of $15.6B at June 30, 2011 • $9.2B of deposits acquired from Whitney • Lower cost of funds for the combined company • Impact from Whitney’s favorable deposit mix – Noninterest bearing demand deposits (DDA) comprised 31% of total period-end deposits compar
Slide 12: Improved Net Interest Margin
Improved Net Interest Margin • 2Q11 net interest margin 4.11% • Reflects a favorable shift in funding sources and a decline in funding costs, partly offset by a less than favorable shift in earning asset mix • Approximately 6bps of the NIM was related to net accretion of purchase accounting adjustme
Slide 13: Credit Quality Metrics Remain Solid
Credit Quality Metrics Remain Solid • Allowance for loan losses was $112.4 million at June 30, 2011, up $18 million from March 31, 2011 • Increase related to an $18 million provision for FDIC covered loans offset by $17.1 million of FDIC loss share coverage • Provision for loan losses was $9.1 milli
Slide 14: Noninterest Income
Noninterest Income • Noninterest income totaled $46.7 million in 2Q11 – Whitney’s fee income totaled approximately $8.2 million (26 days) – Additional $3 million of interest accretion on the FDIC receivable from the Peoples First acquisition – Seasonal increase in insurance fees related to annual po
Slide 15: Noninterest Expense
Noninterest Expense • Noninterest expense totaled $121.4 million in 2Q11 – Merger-related expenses totaled $22.2 million – Hancock’s operating expenses totaled approximately $72 million – Whitney’s operating expenses totaled approximately $26 million (26 days) (normalized = $30 million/month) – Amor
Slide 16: Illustrative Core Earnings Potential
Illustrative Core Earnings Potential Earnings Potential Assumed ROA* 1.20% 1.30% Notes: 1. Based on 3.0% annual growth 2. As of 6/30/2011 n Elimination of Whitney credit expenses n Approximately $3 billion of CDs repricing over the next 4 quarters (avg. cost 1.29%) n Investment of excess liquidity (
Slide 17: Carl J. Chaney, President & CEO
Carl J. Chaney President & CEO Carl J. Chaney President & CEO
Slide 18: Integration Update
Integration Update • Integration continues to progress as scheduled • Professional consulting groups have been assisting with the integration • Main systems conversion currently scheduled for 1Q12 • To-date merger costs have totaled $24 million • Customer and employee retention is a priority • No ma
Slide 19: Expected Cost Savings On Track
Expected Cost Savings On Track ü Remain confident we will meet total projected cost saves of $134 million ü Realized approximately $4 million in cost synergies from acquisition date through the end of second quarter 2011 ü Timeline for synergies remains on track • Cost saves phased in (15% in 2011;
Slide 20: Potential Cross-Sell Opportunities
Potential Cross-Sell Opportunities Potential Cross-Sell Opportunities ü Hancock Insurance Agency / Private Banking ü Trust Services • Top 10 U.S. ranking ü Hancock Investment Services Accelerates product development Scaled opportunity Broaden C&I scope Louisiana based commercial cross sell Personal
Slide 21: 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 22: Conservative Credit Culture Will Continue
Conservative Credit Culture Will Continue § Hancock’s conservative credit culture was key during the most recent credit cycle § That conservative credit culture will continue to exist post merger § During 2010 Whitney established and implemented a culture and review process similar to Hancock’s § Le
Slide 23: Investment Highlights
Investment Highlights n Creates dominant Gulf South leader n History of effective capital management n Superior liquidity n Excellent asset quality and conservative culture n Management and leadership in place n Focused on integration n Enhanced earnings potential n Well positioned for future growth
Slide 24: Hancock Holding Company
Hancock HOLDING COMPANY
Slide 25: Hancock Holding Company - KBW 2011 Community Bank Conference
Hancock Holding Company Hancock Holding Company Keefe, Bruyette & Woods Keefe, Bruyette & Woods 2011 Community Bank Conference 2011 Community Bank Conference August 2, 2011 August 2, 2011
Slide 26: Hancock Holding Company
Hancock HOLDING COMPANY
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation Non-GAAP Reconciliation
Slide 28: 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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