Hancock Whitney Corporation · NASDAQ:HWC
Hancock Whitney — Hancock Holding — Gulf South Bank Conference 2013
26 slides from Hancock Whitney's conference presentation, May 13, 2013
Slide 1: Gulf South Bank Conference
Exhibit 99.1 Gulf South Bank Conference May 13, 2013
Slide 2: Carl Chaney, President & CEO
a Hancock Bank = WHITNEY Carl Chaney President & CEO
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: A Premier Gulf South Financial Services Franchise
A Premier Gulf South Financial Services Franchise Whitney Bank Hancock Bank • Diversified footprint across the Gulf South • 2 well-known Gulf Coast brands • Loyal customer base and attractive deposit funding • Diversified revenue stream with strong earnings momentum • Leading market share in key MSA
Slide 5: Recent Accolades For New Orleans and LA
Recent Accolades For New Orleans and LA #1 Most Improved Metro in the USA [Wall Street Journal] #1 Growing Metro Area for Employment [Brookings Inst.] #1 Metro for IT Job Growth in the USA [Forbes] #1 Most Improved State in the U.S. [Chief Executive magazine] #1 State for Economic Growth Potential [
Slide 6: Fundamentals Remain Solid Compared to Peers
Fundamentals Remain Solid Compared to Peers • Net income $48.6 million or $.56 per diluted common share • ROA 1.03% • ROTCE 12.04% • Continued to build strong capital levels • Improved asset quality metrics • Expenses in line with guidance • Recent balance sheet decline related mainly to seasonal tr
Slide 7: Sam Kendricks, Chief Credit Officer
Sam Kendricks Chief Credit Officer 7
Slide 8: 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% Total Loan Mix 3/31/13 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, F
Slide 9: 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 10: 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 11: 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 12: 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 13: Michael Achary, Chief Financial Officer
a Hancock Bank = WHITNEY Michael Achary Chief Financial Officer 13
Slide 14: 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 15: 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 – Continued repricing of earning assets causing NIM compression – Average rate on new loans booked in 1Q13 in the range of 3.0%-3.5% ; – New secur
Slide 16: Core NIM Compression Related to Lower Earning Asset Yields
Core NIM Compression Related to Lower Earning Asset Yields • NIM compression mitigation strategies in place • Main focus on additional loan volumes, enhanced loan mix, better pricing • C&I • Owner-occupied CRE • Consumer *Core loan yields exclude purchase accounting accretion • Continual deployment
Slide 17: Expected Annual Impact of Purchase Accounting Adjustments
Expected Annual Impact of Purchase Accounting Adjustments Impact of Purchase Accounting Adjustments and Efficiency Initiative 2012-2015 (2013-2015 projections will be updated quarterly; subject to volatility) $125 $124 $113 • Net purchase accounting adjustments $100 will be ‘sizeable’ part of earnin
Slide 18: 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 expense • Most effective way of operating the consolidated organization Annualized 1Q13 $640 Short-t
Slide 19: 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) 19 $s in millions
Slide 20: Carl Chaney, President & CEO
Carl Chaney President & CEO 20
Slide 21: Strategic Review of Markets and Line of Business Focus
Strategic Review of Markets and Line of Business Focus Whitney Bank Hancock Bank • Have reviewed each market for commercial and/or retail line of business focus • Will close between 40-45 branches across the 5-state footprint during 3Q13 and 4Q13 • Expect to incur one-time costs of between $18 - $22
Slide 22: Solid Capital Levels
Solid Capital Levels • TCE ratio 9.14% at March 31, 2013 • Have reviewed opportunities to deploy excess capital and liquidity in the best interest of the Company and its shareholders • Announced stock buyback of up to 5% of outstanding common stock • Completed accelerated share repurchase of approxi
Slide 23: Strong Opportunities
Strong Opportunities Two premier Gulf South franchises Successful merger, integration, retention of customers, associates Today, one strong, consolidated company History of effective capital management Superior liquidity Conservative credit culture Enhanced earnings potential Well positioned for fut
Slide 24: Appendix
a Hancock Bank = WHITNEY
Slide 25: 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 26: Gulf South Bank Conference
Gulf South Bank Conference May 13, 2013