HANCOCK WHITNEY CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
8-K - HANCOCK HOLDING COMPANY 8-K 3-1-2012 - HANCOCK WHITNEY CORP	form8k.htm

EXHIBIT 99.1

Keefe, Bruyette & Woods

Bank Conference

March 1, 2012

Carl J. Chaney
President & CEO

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
conditions and descriptions of plans and strategies for the future. Hancock’s ability to
accurately project results or predict the effects of future plans or strategies is inherently
limited.

We believe that the expectations reflected in the forward-looking statements are based on
reasonable assumptions, but actual results and performance could differ materially from
those set forth in the forward-looking statements. Factors that could cause actual results
to differ from those expressed in the Company's forward-looking statements include, but
are not limited to, those outlined in Hancock's SEC filings, including the “Risk Factors”
section of the Company’s form 10-K and 10-Q.

Hancock does not intend, and undertakes no obligation, to update or revise any forward-
looking statements, and you are cautioned not to place undue reliance on such forward-
looking statements.

As of December 31, 2011

• Integration remains on track

• Core systems conversion scheduled for March 16, 2012

• Branches switching to Hancock Bank in MS, AL, FL;
Whitney Bank in LA, TX

– Closing 30 branches

• Exceptional customer loyalty

Whitney Integration On Track

Merger Costs & Cost Synergies

§ Merger-related expenses expected to total less than $125 million

§ $87 million of merger costs incurred to-date

§ Remain confident in meeting total projected annual cost savings of
$134 million by the beginning of 2013

§ Realized 63% of total annualized savings compared to base period (3Q10 proforma)

As of December 31, 2011

Retaining Legacy Business;
Generating New Business

• Total loans $11.2B

• Increase of $75 million, or 1%,
linked-quarter

– Loans increased $125 million linked-quarter after
adjusting for the $50 million decline in the FDIC covered
Peoples First portfolio

– Growth in C&I, residential mortgage and consumer loans

• Balanced portfolio

– C&I Exposure 34%

– CRE Exposure 38%

– Mortgage & Consumer Exposure 28%

As of December 31, 2011

Strong Core Deposit Funding

• Total deposits $15.7B

• Increase of $421 million, or 3%, linked-quarter

– Reflects year-end seasonality of both commercial and public fund
customers

– Historically both banks build deposits at year-end with some deposit
runoff in the first quarter

• Funding mix remained strong

– Low cost of funds (44bps)

– Noninterest bearing demand deposits (DDA) comprised 35% of
total period-end deposits

• Approximately $2.3B in CDs maturing over
the next 4 quarters at average rate of 1.06%

– Included in the CD decline during 4Q11 was approximately $56
million of anticipated runoff from the Peoples First time deposit
portfolio

As of December 31, 2011

Ø Total equity $2.4 billion at December 31, 2011

Ø TCE ratio 7.96%, down from 8.56% at September 30, 2011

– Approximately half of the decline related to actuarial losses arising from normal
year end retirement plan revaluations

– Changes in goodwill reflect updated purchase accounting valuations

– Increase in total assets related to seasonal year-end deposits

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 integration

Well-Capitalized Institution

As of December 31, 2011

Michael M. Achary
CFO

Strong Net Interest Margin

• 4Q11 net interest margin 4.39% up 7bps
linked-quarter

– Approximately 37bps of the NIM was related to net
accretion of Whitney purchase accounting adjustments
(24bps in 3Q11)

– Accretion amounts are reevaluated quarterly

– Increase in 4Q11 reflects positive performance of
Whitney’s loan portfolio

• Reflects a favorable shift in funding
sources and a decline in funding costs,
offset by a less favorable shift in earning
asset mix and a decline in investment
portfolio yields

• Deployment of excess liquidity and CD
repricing will further benefit the NIM

* Excludes impact of Whitney purchase accounting adjustments

** Impact of Whitney purchase accounting adjustments.

As of December 31, 2011

Credit Quality Stable;
Acquired Portfolio Performing Positively

• Whitney acquired portfolio performing positively

– Payoffs, paydowns and upgrades of many previously classified credits

• Peoples First portfolio covered by a FDIC loss-sharing agreement

• Allowance for loan losses was $125 million, up $7 million from September 30, 2011

– Provision for loan losses was $11.5 million

– Net charge-offs totaled $11.3 million related to the non-covered portfolio

• ALLL/loans was 1.70% (excluding the impact of the Whitney acquired loans and FDIC covered loans)

• Nonperforming assets increased $40 million linked-quarter reflecting:

– an increase in legacy Hancock NPLs related to previously identified problem credits

– an increase in total foreclosed assets related to:

– purchase accounting valuation adjustments on long held assets

– properties no longer in use

– new ORE from the Peoples First covered portfolio

As of December 31, 2011

Fee Income Impacted By Durbin

• Noninterest income totaled $61 million in 4Q11

• Impact from new interchange rates related to the Durbin amendment
accounted for approximately 60% of the linked-quarter decline

– When fully implemented rule will cause a further reduction in fees

– Expected to cost an additional $2 million per quarter compared to current levels

– Reviewing opportunities to offset loss of income

• Cross-sell opportunities expected to generate additional fee income

– Treasury Management

– International Banking

– Insurance and Private Banking

• Systems conversion in 1Q12 will enhance revenue sales opportunities

As of December 31, 2011

Focused On Efficiency Targets

• Operating expense totaled $165 million in 4Q11, down $6 million linked-
quarter

– Reductions in personnel, marketing and ORE expense

– Operating expense excludes merger costs

• Merger-related expenses totaled $40.2 million in 4Q11

– Increase related to severance, marketing and professional fees leading up to the core
systems conversion

• Efficiency ratio 65.39% in 4Q11*

– Short term target: 62-63% (impact from 100% of cost saves)

– Longer term target: less than 60%

* Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions and merger expenses

As of December 31, 2011

Carl J. Chaney
President & CEO

n Conservative approach to banking since 1899

n Our culture defines how we run our bank

― Commitment to strong capital

― Superior asset quality

― Superior liquidity / low loan to deposit ratio

― No exotic securities

― Did not take TARP

n Experienced and stable management team

n A safe harbor in times of distress

Honor & Integrity

Strength & Stability

Commitment

to Service

Teamwork

Personal

Responsibility

Proud History of Conservative Banking

Keefe, Bruyette & Woods

Bank Conference

March 1, 2012

Appendix

4Q11 Earnings Summary

* A reconciliation of net income to operating income and pre-tax, pre-provision income is included on slide 21.

** Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles, securities transactions and merger expenses.

($s in millions; except per share data)	4Q11	3Q11
Operating Income*	$45.1	$45.2
Operating E.P.S. (diluted)*	$.53	$.53
Return on Assets (operating)*	0.93%	0.92%
Merger Costs	$40.2	$22.8
Net Income	$19.0	$30.4
Earnings Per Share (diluted)	$.22	$.36
Pre-Tax, Pre-Provision Income*	$76.5	$73.9
Net Interest Margin	4.39%	4.32%
Net Charge-offs non-covered	0.40%	0.28%
Tangible Common Equity	7.96%	8.56%
Efficiency Ratio**	65.39%	66.98%

As of December 31, 2011

Non-GAAP Reconciliation

Investor Contacts

Carl J. Chaney - President & CEO

carl_chaney@hancockbank.com

Trisha Voltz Carlson - SVP, Investor Relations

trisha_carlson@hancockbank.com

Hancock Holding Company

P.O. Box 4019, Gulfport, MS 39502

Phone: 228.868.4000 or 1.800.522.6542

www.hancockbank.com or www.whitneybank.com

Michael M. Achary - EVP & CFO

michael_achary@hancockbank.com

Attached files

Stock widget

Investing forum

HANCOCK WHITNEY CORP Reports