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8-K - HANCOCK WHITNEY CORP | hbhc1q168-k.htm |
Exhibit 99.1
For Immediate Release
April 19, 2016
For More Information
Trisha Voltz Carlson
SVP, Investor Relations Manager
504.299.5208
trisha.carlson@hancockbank.com
Hancock reports first quarter 2016 financial results
Core pre-tax, pre-provision income improves; results reflect previously announced energy provision
Highlights of the company's first quarter 2016 results (compared to fourth quarter 2015):
·
|
Core pre-tax, pre-provision income $76.4 million, up $8.4 million or 12%
|
·
|
Total loans up $275 million, or 7% linked-quarter annualized (LQA)
|
·
|
Loan growth funded completely by deposit growth of $307 million, or 7% LQA
|
·
|
Core net interest margin up 2 basis points (bps); up 4 bps excluding interest reversals
|
·
|
Tangible common equity (TCE) ratio up 7 bps to 7.69%
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·
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Allowance for the energy portfolio increased $33 million, to $111 million, or almost 7% of energy loans
|
GULFPORT, Miss. (April 19, 2016) — Hancock Holding Company (Nasdaq: HBHC) today announced its financial results for the first quarter of 2016. Net income for the first quarter of 2016 was $3.8 million, or $.05 per diluted common share, compared to $15.3 million, or $.19 in the fourth quarter of 2015 and $40.2 million, or $.49, in the first quarter of 2015. The linked-quarter decline in earnings was mainly related to the previously announced increase in the loan loss provision. There were also nonoperating expenses of $5.0 million (pre-tax), or $.04 per share, in the first quarter of 2016 mainly related to separation pay. There were no nonoperating items in the fourth quarter of 2015, with $7.0 million (pre-tax), or $.06 per share, of nonoperating items in the first quarter of 2015. The year-over-year decline in earnings was mainly related to a decrease in purchase accounting income of approximately $8.9 million (pre-tax), and the provision taken to increase the energy allowance noted above. Pre-tax, pre-provision earnings (core) were $76.4 million for the first quarter of 2016, compared to $68.0 million in the fourth quarter of 2015 and $63.6 million in the first quarter of 2015.
"Core pre-tax, pre-provision earnings improved in the first quarter despite the impact of today's energy cycle," said President and CEO John M. Hairston. "While the volatility of the current energy cycle continues to overshadow the progress we are making towards meeting our goals, we remain focused on growing the nonenergy portion of our company and is the reason we set our 2016 goal at pre-tax, pre-provision earnings growth. The metrics for the quarter outside of provision expense and energy are in-line with previous guidance and we are proud of the efforts
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Hancock reports first quarter 2016 financial results
April 19, 2016
our bankers have put forth in growing loans and deposits, controlling expenses and working to generate core revenue."
Energy
At March 31, 2016, loans in the energy segment totaled $1.6 billion, or 10% of total loans. The energy portfolio increased approximately $53 million linked-quarter and is comprised of credits to both the E&P industry and support industries. The net increase in the portfolio for the quarter reflects approximately $85 million in payoffs and paydowns, and $17 million in energy charge-offs, offset by approximately $155MM in draws on existing lines.
During the first quarter of 2016 there were risk rating downgrades to criticized status of over $300 million in outstanding energy credits. This increase was mainly related to the application of new regulatory guidance which was used in the recent shared national credit (SNC) exam that was completed on March 15, 2016. Approximately 75% of the increase in criticized energy loans was from reserve-based (RBL) credits identified in the SNC exam or based on the new regulatory guidance. Several of the credits downgraded in the exam, totaling approximately $80 million, were moved to nonaccrual status.
Due to the changes noted above, and the impact of the prolonged energy cycle, the company increased its allowance for loan losses on the energy portfolio and booked a $60 million total provision for credit losses in the quarter. Approximately $50 million of the provision expense was related to the energy portfolio. As a result, and after energy charge-offs of approximately $17 million, the allowance for the energy portfolio was increased $33 million, to $111.2 million, or almost 7% of energy loans.
The impact and severity of future risk rating migration, as well as any associated provisions or net charge-offs, will depend on overall oil prices and the duration of the cycle. While we expect additional charge-offs in the portfolio, we continue to believe the impact on the company of the energy cycle will be manageable and our capital will remain solid. Management currently estimates that charge-offs from energy-related credits could approximate $65-$95 million over the duration of the cycle.
Additional details of the energy portfolio are included in the presentation slides posted on our Investor Relations website.
Loans
Total loans at March 31, 2016 were $16.0 billion, up $275 million, or 2%, from December 31, 2015. All regions across the footprint reported net loan growth during the quarter. Average loans totaled $15.8 billion for the first quarter of 2016, up $651 million, or 4%, linked-quarter.
Management expects continued growth across the footprint will be slightly offset by ongoing payoffs and paydowns in the energy portfolio. This is expected to result in year over year period-end loan growth of 5-7% in 2016.
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Hancock reports first quarter 2016 financial results
April 19, 2016
Deposits
Total deposits at March 31, 2016 were $18.7 billion, up $307 million, or 2%, from December 31, 2015. Average deposits for the first quarter of 2016 were $18.3 billion, up $460 million, or 3%, linked-quarter.
Noninterest-bearing demand deposits (DDAs) totaled $7.1 billion at March 31, 2016, down $168 million from December 31, 2015. DDAs comprised 38% of total period-end deposits at March 31, 2016.
Interest-bearing transaction and savings deposits totaled $7.0 billion at the end of the first quarter of 2016, up $276 million, or 4%, from December 31, 2015. Time deposits of $2.4 billion increased $300 million, or 15%, while interest-bearing public fund deposits decreased $101 million, or 4%, to $2.2 billion at March 31, 2016.
Asset Quality
Nonperforming assets (NPAs) totaled $307 million at March 31, 2016, up $116 million from December 31, 2015. During the first quarter of 2016, total nonperforming loans increased approximately $119 million while foreclosed and surplus real estate (ORE) and other foreclosed assets decreased approximately $3 million. The net increase in nonperforming loans was mainly related to the movement of several energy credits, totaling approximately $90 million during the quarter. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 1.92% at March 31, 2016, up 70 bps from December 31, 2015.
The total allowance for loan losses was $217.8 million at March 31, 2016, up $36.6 million from December 31, 2015. The ratio of the allowance for loan losses to period-end loans was 1.36% at March 31, 2016, up from 1.15% at December 31, 2015. The allowance maintained on the non-FDIC acquired portion of the loan portfolio increased $39.2 million linked-quarter, totaling $197.3 million, while the allowance on the FDIC acquired loan portfolio decreased $2.6 million linked-quarter.
Net charge-offs from the non-FDIC acquired loan portfolio were $21.3 million, or 0.54% of average total loans on an annualized basis in the first quarter of 2016, up from $7.9 million, or 0.21% of average total loans in the fourth quarter of 2015. Included in the first quarter's total are $17.4 million in charge-offs related to energy credits.
During the first quarter of 2016, Hancock recorded a total provision for loan losses of $60.0 million, up from $50.2 million in the fourth quarter of 2015. Based on information currently available, management currently expects the provision for loan losses could approximate $105 - $145 million for the full year of 2016.
Net Interest Income and Net Interest Margin
Net interest income (TE) for the first quarter of 2016 was $168.2 million, up $5.6 million from the fourth quarter of 2015. During the first quarter, the impact on net interest income from purchase accounting adjustments (PAAs) was virtually unchanged. Excluding the impact from purchase
Net interest income (TE) for the first quarter of 2016 was $168.2 million, up $5.6 million from the fourth quarter of 2015. During the first quarter, the impact on net interest income from purchase accounting adjustments (PAAs) was virtually unchanged. Excluding the impact from purchase
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Hancock reports first quarter 2016 financial results
April 19, 2016
accounting items, core net interest income also increased $5.6 million linked-quarter. Average earning assets were $20.9 billion for the first quarter of 2016, up $770 million, or 4%, from the fourth quarter of 2015.
The reported net interest margin (TE) was 3.23% for the first quarter of 2016, up 2 bps from the fourth quarter of 2015. The core net interest margin (reported net interest income (TE) excluding total net purchase accounting adjustments, annualized, as a percent of average earning assets) also increased 2 bps to 3.12% during the first quarter of 2016. The main drivers of the improvement were an increase in the core loan yield of 5 bps and an increase in the securities portfolio yield of 6 bps. This was slightly offset by an increase in the cost of funds of 3 basis points. The margin was negatively impacted 2 bps in the quarter by interest reversals of approximately $0.9 million.
Noninterest Income
Noninterest income totaled $58.2 million for the first quarter of 2016, down $1.5 million, or 2%, from the fourth quarter of 2015. Included in the total is amortization of $1.6 million related to the FDIC indemnification asset, compared to amortization of $1.7 million in the fourth quarter of 2015. Excluding the impact of this item, core noninterest income totaled $59.8 million, down $1.6 million, or 3%, linked-quarter.
Service charges on deposits totaled $18.4 million for the first quarter of 2016, down $0.6 million, or 3%, from the fourth quarter of 2015. Bank card and ATM fees totaled $11.3 million, down $0.4 million, or 4%, from the fourth quarter of 2015.
Trust fees totaled $11.2 million, down slightly linked-quarter. Investment and annuity income and insurance fees totaled $6.2 million, down $0.4 million, or 6%, linked-quarter.
Fees from secondary mortgage operations totaled $2.9 million for the first quarter of 2016, up slightly linked-quarter.
Other noninterest income (excluding the amortization of the FDIC indemnification asset noted above) totaled $9.7 million, down $0.1 million, or 1%, from the fourth quarter of 2015.
Noninterest Expense & Taxes
Noninterest expense for the first quarter of 2016 totaled $156.0 million, virtually unchanged, from the fourth quarter of 2015. There were $5.0 million of nonoperating expenses in the first quarter of 2016 mainly related to separation pay. Excluding nonoperating items, operating expense totaled $151.1 million, down $5.0 million, or 3%, linked quarter. The line item discussions below exclude the impact of nonoperating expenses.
Noninterest expense for the first quarter of 2016 totaled $156.0 million, virtually unchanged, from the fourth quarter of 2015. There were $5.0 million of nonoperating expenses in the first quarter of 2016 mainly related to separation pay. Excluding nonoperating items, operating expense totaled $151.1 million, down $5.0 million, or 3%, linked quarter. The line item discussions below exclude the impact of nonoperating expenses.
Total personnel expense was $84.7 million in the first quarter of 2016, down $0.6 million, or 1%, from the fourth quarter of 2015.
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Hancock reports first quarter 2016 financial results
April 19, 2016
Occupancy and equipment expense totaled $14.1 million in the first quarter of 2016, down $0.4 million, or 3%, from the fourth quarter of 2015.
ORE expense totaled $0.4 million for the first quarter of 2016, down $0.9 million from the fourth quarter of 2015.
Amortization of intangibles totaled $5.1 million for the first quarter of 2016, down $0.6 million, or 10%, linked-quarter. Other operating expense totaled $46.6 million in the first quarter of 2016, down $2.5 million, or 5%, from the fourth quarter of 2015.
The effective income tax rate for the first quarter of 2016 was 23%. Management expects the effective income tax rate to approximate 22-24% for the remainder of 2016. The effective income tax rate continues to be less than the statutory rate of 35% due primarily to tax-exempt income and tax credits.
Capital
Common shareholders' equity at March 31, 2016 totaled $2.4 billion. The tangible common equity (TCE) ratio was 7.69%, up 7 bps from December 31, 2015. During the fourth quarter of 2015 the company placed its common stock buyback on hold in light of the current energy cycle. No shares were repurchased in the first quarter of 2016. Additional capital ratios are included in the financial tables.
Conference Call and Slide Presentation
Management will host a conference call for analysts and investors at 9:00 a.m. Central Time on Wednesday, April 20, 2016 to review the results. A live listen-only webcast of the call will be available under the Investor Relations section of Hancock's website at www.hancockbank.com. Additional financial tables and a slide presentation related to first quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial (877) 564-1219 or (973) 638-3429. An audio archive of the conference call will be available under the Investor Relations section of our website. A replay of the call will also be available through April 27, 2016 by dialing (855) 859-2056 or (404) 537-3406, passcode 85429668.
About Hancock Holding Company
Hancock Holding Company is a financial services company with regional business headquarters and locations throughout a growing Gulf South corridor. The company's banking subsidiary provides a comprehensive network of full-service financial choices through Hancock Bank locations in Mississippi, Alabama, and Florida and Whitney Bank offices in Louisiana and Texas, including traditional and online banking; commercial and small business banking; energy banking; private banking; trust and investment services; certain insurance services; mortgage services; and consumer financing. More information and online banking are available at www.hancockbank.com and www.whitneybank.com.
Forward-Looking Statements
This news release 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, and we intend such forward-looking statements to
This news release 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, and we intend such forward-looking statements to
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Hancock reports first quarter 2016 financial results
April 19, 2016
be covered by the safe harbor provisions therein and are including this statement for purposes of invoking these safe-harbor provisions. 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.
Forward-looking statements that we may make include, but may not be limited to, comments with respect to future levels of economic activity in our markets, including the impact of volatility of oil and gas prices on our energy portfolio and associated loan loss reserves and possible charge-offs, and the downstream impact on businesses that support the energy sector, especially in the Gulf Coast region, loan growth expectations, deposit trends, credit quality trends, net interest margin trends, future expense levels, success of revenue-generating initiatives, projected tax rates, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts such as accretion levels, possible repurchases of shares under stock buyback programs, and the financial impact of regulatory requirements. Hancock's ability to accurately project results, predict the effects of future plans or strategies, or predict market or economic developments is inherently limited. Although Hancock believes that the expectations reflected in its forward-looking statements are based on reasonable assumptions, 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 Hancock's forward-looking statements include, but are not limited to, those risk factors included in Hancock's public filings with the Securities and Exchange Commission, which are available at the SEC's internet site (http://www.sec.gov). You are cautioned not to place undue reliance on these forward-looking statements. Hancock does not intend, and undertakes no obligation, to update or revise any forward-looking statements, whether as a result of differences in actual results, changes in assumptions or changes in other factors affecting such statements, except as required by law.
6
HANCOCK HOLDING COMPANY
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QUARTERLY HIGHLIGHTS
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||||||||||||||||||||
(Unaudited)
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||||||||||||||||||||
Three Months Ended
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||||||||||||||||||||
(dollars in thousands, except per share data)
|
3/31/2016
|
12/31/2015
|
9/30/2015
|
6/30/2015
|
3/31/2015
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|||||||||||||||
INCOME STATEMENT DATA
|
||||||||||||||||||||
Net interest income
|
$
|
162,836
|
$
|
158,395
|
$
|
156,830
|
$
|
151,791
|
$
|
158,158
|
||||||||||
Net interest income (TE) (a)
|
168,179
|
162,635
|
160,134
|
154,879
|
161,114
|
|||||||||||||||
Provision for loan losses
|
60,036
|
50,196
|
10,080
|
6,608
|
6,154
|
|||||||||||||||
Noninterest income
|
58,186
|
59,653
|
60,211
|
60,874
|
56,546
|
|||||||||||||||
Noninterest expense (excluding nonoperating items)
|
151,054
|
156,030
|
151,193
|
149,990
|
146,201
|
|||||||||||||||
Nonoperating items
|
4,978
|
-
|
-
|
8,927
|
6,981
|
|||||||||||||||
Net income
|
3,839
|
15,307
|
41,166
|
34,829
|
40,159
|
|||||||||||||||
Operating income (b)
|
7,075
|
15,307
|
41,166
|
40,631
|
44,697
|
|||||||||||||||
Pre-tax, pre-provision (PTPP) profit (TE) (a) (c)
|
70,333
|
66,258
|
69,152
|
56,836
|
64,145
|
|||||||||||||||
PERIOD-END BALANCE SHEET DATA
|
||||||||||||||||||||
Loans
|
$
|
15,978,124
|
$
|
15,703,314
|
$
|
14,763,050
|
$
|
14,344,752
|
$
|
13,924,386
|
||||||||||
Securities
|
4,667,837
|
4,463,792
|
4,548,922
|
4,445,452
|
4,107,904
|
|||||||||||||||
Earning assets
|
20,821,513
|
20,753,095
|
19,526,150
|
19,409,963
|
18,568,037
|
|||||||||||||||
Total assets
|
22,809,370
|
22,833,605
|
21,602,793
|
21,532,824
|
20,718,739
|
|||||||||||||||
Noninterest-bearing deposits
|
7,108,598
|
7,276,127
|
6,075,558
|
6,180,814
|
6,201,403
|
|||||||||||||||
Total deposits
|
18,656,150
|
18,348,912
|
17,439,948
|
17,301,788
|
16,860,485
|
|||||||||||||||
Common shareholders' equity
|
2,421,040
|
2,413,143
|
2,453,561
|
2,430,040
|
2,425,098
|
|||||||||||||||
AVERAGE BALANCE SHEET DATA
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||||||||||||||||||||
Loans
|
$
|
15,848,770
|
$
|
15,198,232
|
$
|
14,511,474
|
$
|
14,138,904
|
$
|
13,869,397
|
||||||||||
Securities (d)
|
4,528,090
|
4,480,972
|
4,425,546
|
4,143,097
|
3,772,997
|
|||||||||||||||
Earning assets
|
20,910,668
|
20,140,432
|
19,433,337
|
18,780,771
|
18,315,839
|
|||||||||||||||
Total assets
|
22,932,515
|
22,171,216
|
21,475,943
|
20,869,407
|
20,441,975
|
|||||||||||||||
Noninterest-bearing deposits
|
7,033,680
|
6,709,188
|
6,032,680
|
6,107,900
|
5,924,196
|
|||||||||||||||
Total deposits
|
18,281,754
|
17,821,484
|
17,313,433
|
16,862,088
|
16,485,259
|
|||||||||||||||
Common shareholders' equity
|
2,431,747
|
2,453,480
|
2,439,068
|
2,430,710
|
2,447,870
|
|||||||||||||||
COMMON SHARE DATA
|
||||||||||||||||||||
Earnings per share - diluted
|
$
|
0.05
|
$
|
0.19
|
$
|
0.52
|
$
|
0.44
|
$
|
0.49
|
||||||||||
Operating earnings per share - diluted (b)
|
0.09
|
0.19
|
0.52
|
0.51
|
0.55
|
|||||||||||||||
Cash dividends per share
|
0.24
|
0.24
|
0.24
|
0.24
|
0.24
|
|||||||||||||||
Book value per share (period-end)
|
31.24
|
31.14
|
31.65
|
31.12
|
31.14
|
|||||||||||||||
Tangible book value per share (period-end)
|
21.90
|
21.74
|
22.18
|
21.63
|
21.55
|
|||||||||||||||
Weighted average number of shares - diluted
|
77,672
|
77,544
|
78,075
|
78,115
|
79,661
|
|||||||||||||||
Period-end number of shares
|
77,508
|
77,496
|
77,519
|
78,094
|
77,886
|
|||||||||||||||
Market data
|
||||||||||||||||||||
High sales price
|
$
|
25.84
|
$
|
30.96
|
$
|
32.47
|
$
|
32.98
|
$
|
31.13
|
||||||||||
Low sales price
|
20.01
|
23.35
|
25.20
|
28.02
|
24.96
|
|||||||||||||||
Period-end closing price
|
22.96
|
25.17
|
27.05
|
31.91
|
29.86
|
|||||||||||||||
Trading volume
|
56,319
|
48,789
|
44,705
|
40,162
|
51,866
|
|||||||||||||||
PERFORMANCE RATIOS
|
||||||||||||||||||||
Return on average assets
|
0.07
|
%
|
0.27
|
%
|
0.76
|
%
|
0.67
|
%
|
0.80
|
%
|
||||||||||
Return on average assets - operating (b)
|
0.12
|
%
|
0.27
|
%
|
0.76
|
%
|
0.78
|
%
|
0.89
|
%
|
||||||||||
Return on average common equity
|
0.64
|
%
|
2.48
|
%
|
6.70
|
%
|
5.75
|
%
|
6.65
|
%
|
||||||||||
Return on average common equity - operating (b)
|
1.17
|
%
|
2.48
|
%
|
6.70
|
%
|
6.70
|
%
|
7.41
|
%
|
||||||||||
Return on average tangible common equity
|
0.91
|
%
|
3.53
|
%
|
9.60
|
%
|
8.28
|
%
|
9.60
|
%
|
||||||||||
Return on average tangible common equity - operating (b)
|
1.67
|
%
|
3.53
|
%
|
9.60
|
%
|
9.66
|
%
|
10.68
|
%
|
||||||||||
Tangible common equity ratio (e)
|
7.69
|
%
|
7.62
|
%
|
8.24
|
%
|
8.13
|
%
|
8.40
|
%
|
||||||||||
Net interest margin (TE) (a)
|
3.23
|
%
|
3.21
|
%
|
3.28
|
%
|
3.30
|
%
|
3.55
|
%
|
||||||||||
Average loan/deposit ratio
|
86.69
|
%
|
85.28
|
%
|
83.82
|
%
|
83.85
|
%
|
84.13
|
%
|
||||||||||
Efficiency ratio (f)
|
64.47
|
%
|
67.63
|
%
|
65.88
|
%
|
66.67
|
%
|
64.36
|
%
|
||||||||||
Allowance for loan losses as a percent of period-end loans
|
1.36
|
%
|
1.15
|
%
|
0.95
|
%
|
0.91
|
%
|
0.92
|
%
|
||||||||||
Annualized net non-FDIC acquired charge-offs to average loans
|
0.54
|
%
|
0.21
|
%
|
0.09
|
%
|
0.03
|
%
|
0.11
|
%
|
||||||||||
Allowance for loan losses to non-performing loans + accruing loans
|
||||||||||||||||||||
90 days past due
|
74.55
|
%
|
105.54
|
%
|
78.15
|
%
|
100.92
|
%
|
123.14
|
%
|
||||||||||
Noninterest income as a percent of total revenue (TE) (a)
|
25.70
|
%
|
26.84
|
%
|
27.32
|
%
|
28.21
|
%
|
25.98
|
%
|
||||||||||
FTE headcount
|
3,819
|
3,921
|
3,863
|
3,825
|
3,785
|
|||||||||||||||
(a) Tax-equivalent (TE) amounts are calculated using a federal income tax rate of 35%.
|
||||||||||||||||||||
(b) Net income less nonoperating items. Management believes that operating income provides a useful measure of financial performance that helps investors compare the Company's fundamental operations over time.
|
||||||||||||||||||||
(c) Net interest income (TE) and noninterest income less noninterest expense. Management believes that PTPP profit is a useful financial measure because it enables investors to assess the Company's ability to generate capital to cover credit losses through a credit cycle.
|
||||||||||||||||||||
(d) Average securities does not include unrealized holding gains/losses on available for sale securities.
|
||||||||||||||||||||
(e) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets.
|
||||||||||||||||||||
(f) The efficiency ratio is noninterest expense to total net interest (TE) and noninterest income, excluding amortization of purchased intangibles, and nonoperating items.
|
7
HANCOCK HOLDING COMPANY
|
|||||||||
INCOME STATEMENT
|
|||||||||
(Unaudited)
|
|||||||||
Three Months Ended
|
|||||||||
(dollars in thousands, except per share data)
|
3/31/2016
|
12/31/2015
|
3/31/2015
|
||||||
NET INCOME
|
|||||||||
Interest income
|
$
|
180,641
|
$
|
174,310
|
$
|
169,087
|
|||
Interest income (TE)
|
185,984
|
178,550
|
172,043
|
||||||
Interest expense
|
17,805
|
15,915
|
10,929
|
||||||
Net interest income (TE)
|
168,179
|
162,635
|
161,114
|
||||||
Provision for loan losses
|
60,036
|
50,196
|
6,154
|
||||||
Noninterest income
|
58,186
|
59,653
|
56,546
|
||||||
Noninterest expense
|
156,032
|
156,030
|
153,515
|
||||||
Income before income taxes
|
4,954
|
11,822
|
55,035
|
||||||
Income tax expense
|
1,115
|
(3,485)
|
14,876
|
||||||
Net income
|
$
|
3,839
|
$
|
15,307
|
$
|
40,159
|
|||
ADJUSTMENTS FROM NET INCOME TO OPERATING INCOME
|
|||||||||
Nonoperating items
|
|||||||||
Nonoperating securities transactions
|
-
|
-
|
(333)
|
||||||
Nonoperating expense
|
4,978
|
-
|
7,314
|
||||||
Total nonoperating items
|
4,978
|
-
|
6,981
|
||||||
Taxes on adjustments at marginal tax rate
|
1,742
|
-
|
2,443
|
||||||
Total adjustments (net of taxes)
|
3,236
|
-
|
4,538
|
||||||
Operating income (g)
|
$
|
7,075
|
$
|
15,307
|
$
|
44,697
|
|||
ADJUSTMENTS FROM NET INCOME TO PTPP PROFIT
|
|||||||||
Difference between interest income and interest income (TE)
|
5,343
|
4,240
|
2,956
|
||||||
Provision for loan losses
|
60,036
|
50,196
|
6,154
|
||||||
Income tax expense
|
1,115
|
(3,485)
|
14,876
|
||||||
Pre-tax, pre-provision (PTPP) profit (TE) (h)
|
$
|
70,333
|
$
|
66,258
|
$
|
64,145
|
|||
NONINTEREST INCOME AND NONINTEREST EXPENSE
|
|||||||||
Service charges on deposit accounts
|
$
|
18,383
|
$
|
18,971
|
$
|
17,315
|
|||
Trust fees
|
11,224
|
11,287
|
11,200
|
||||||
Bank card and ATM fees
|
11,348
|
11,792
|
11,183
|
||||||
Investment & annuity fees
|
4,933
|
4,632
|
5,050
|
||||||
Secondary mortgage market operations
|
2,912
|
2,884
|
2,664
|
||||||
Insurance commissions and fees
|
1,307
|
1,980
|
1,754
|
||||||
Amortization of FDIC loss share receivable
|
(1,613)
|
(1,713)
|
(1,197)
|
||||||
Other income
|
9,692
|
9,820
|
8,577
|
||||||
Total noninterest income
|
$
|
58,186
|
$
|
59,653
|
$
|
56,546
|
|||
Personnel expense
|
$
|
84,741
|
$
|
85,315
|
$
|
80,117
|
|||
Net occupancy expense
|
10,356
|
10,639
|
11,162
|
||||||
Equipment expense
|
3,774
|
3,871
|
3,933
|
||||||
Other real estate expense, net
|
445
|
1,361
|
456
|
||||||
Other operating expense
|
46,614
|
49,153
|
44,215
|
||||||
Amortization of intangibles
|
5,124
|
5,691
|
6,318
|
||||||
Total operating expense
|
151,054
|
156,030
|
146,201
|
||||||
Nonoperating items
|
4,978
|
-
|
7,314
|
||||||
Total noninterest expense
|
$
|
156,032
|
$
|
156,030
|
$
|
153,515
|
|||
COMMON SHARE DATA
|
|||||||||
Earnings per share:
|
|||||||||
Basic
|
$
|
0.05
|
$
|
0.19
|
$
|
0.49
|
|||
Diluted
|
0.05
|
0.19
|
0.49
|
||||||
Operating earnings per share: (g)
|
|||||||||
Basic
|
$
|
0.09
|
$
|
0.19
|
$
|
0.55
|
|||
Diluted
|
0.09
|
0.19
|
0.55
|
||||||
(g) Net income less nonoperating items. Management believes that operating income provides a useful measure of financial performance that helps investors compare the Company's fundamental operations over time.
|
|||||||||
(h) Net interest income (TE) and noninterest income less noninterest expense. Management believes that PTPP profit is a useful financial measure because it enables investors to assess the Company's ability to generate capital to cover credit losses through a credit cycle.
|
8
HANCOCK HOLDING COMPANY
|
|||||||||||||||
INCOME STATEMENT
|
|||||||||||||||
(Unaudited)
|
|||||||||||||||
Three months ended
|
|||||||||||||||
(dollars in thousands)
|
3/31/2016
|
12/31/2015
|
9/30/2015
|
6/30/2015
|
3/31/2015
|
||||||||||
Interest income
|
$
|
180,641
|
$
|
174,310
|
$
|
171,329
|
$
|
164,920
|
$
|
169,087
|
|||||
Interest income (TE)
|
185,984
|
178,550
|
174,633
|
168,008
|
172,043
|
||||||||||
Interest expense
|
17,805
|
15,915
|
14,499
|
13,129
|
10,929
|
||||||||||
Net interest income (TE)
|
168,179
|
162,635
|
160,134
|
154,879
|
161,114
|
||||||||||
Provision for loan losses
|
60,036
|
50,196
|
10,080
|
6,608
|
6,154
|
||||||||||
Noninterest income
|
58,186
|
59,653
|
60,211
|
60,874
|
56,546
|
||||||||||
Noninterest expense
|
156,032
|
156,030
|
151,193
|
158,917
|
153,515
|
||||||||||
Income before income taxes
|
4,954
|
11,822
|
55,768
|
47,140
|
55,035
|
||||||||||
Income tax expense
|
1,115
|
(3,485)
|
14,602
|
12,311
|
14,876
|
||||||||||
Net income
|
$
|
3,839
|
$
|
15,307
|
$
|
41,166
|
$
|
34,829
|
$
|
40,159
|
|||||
ADJUSTMENTS FROM NET INCOME TO OPERATING INCOME
|
|||||||||||||||
Nonoperating items
|
|||||||||||||||
Nonoperating securities transactions
|
-
|
-
|
-
|
-
|
(333)
|
||||||||||
Nonoperating expense
|
4,978
|
-
|
-
|
8,927
|
7,314
|
||||||||||
Total nonoperating items
|
4,978
|
-
|
-
|
8,927
|
6,981
|
||||||||||
Taxes on adjustments at marginal tax rate
|
1,742
|
-
|
-
|
3,125
|
2,443
|
||||||||||
Adjustments (net of taxes)
|
3,236
|
-
|
-
|
5,802
|
4,538
|
||||||||||
Operating income (g)
|
$
|
7,075
|
$
|
15,307
|
$
|
41,166
|
$
|
40,631
|
$
|
44,697
|
|||||
Pre-tax, pre-provision (PTPP) profit (TE) (h)
|
$
|
70,333
|
$
|
66,258
|
$
|
69,152
|
$
|
56,836
|
$
|
64,145
|
|||||
NONINTEREST INCOME AND NONINTEREST EXPENSE
|
|||||||||||||||
Service charges on deposit accounts
|
$
|
18,383
|
$
|
18,971
|
$
|
18,619
|
$
|
17,908
|
$
|
17,315
|
|||||
Trust fees
|
11,224
|
11,287
|
11,345
|
11,795
|
11,200
|
||||||||||
Bank card and ATM fees
|
11,348
|
11,792
|
11,637
|
11,868
|
11,183
|
||||||||||
Investment & annuity fees
|
4,933
|
4,632
|
6,149
|
4,838
|
5,050
|
||||||||||
Secondary mortgage market operations
|
2,912
|
2,884
|
3,413
|
3,618
|
2,664
|
||||||||||
Insurance commissions and fees
|
1,307
|
1,980
|
2,238
|
2,595
|
1,754
|
||||||||||
Amortization of FDIC loss share receivable
|
(1,613)
|
(1,713)
|
(1,564)
|
(1,273)
|
(1,197)
|
||||||||||
Other income
|
9,692
|
9,820
|
8,374
|
9,525
|
8,577
|
||||||||||
Total noninterest income
|
$
|
58,186
|
$
|
59,653
|
$
|
60,211
|
$
|
60,874
|
$
|
56,546
|
|||||
Personnel expense
|
$
|
84,741
|
$
|
85,315
|
$
|
84,155
|
$
|
82,533
|
$
|
80,117
|
|||||
Net occupancy expense
|
10,356
|
10,639
|
11,222
|
11,765
|
11,162
|
||||||||||
Equipment expense
|
3,774
|
3,871
|
3,598
|
4,079
|
3,933
|
||||||||||
Other real estate expense, net
|
445
|
1,361
|
422
|
501
|
456
|
||||||||||
Other operating expense
|
46,614
|
49,153
|
45,769
|
44,964
|
44,215
|
||||||||||
Amortization of intangibles
|
5,124
|
5,691
|
6,027
|
6,148
|
6,318
|
||||||||||
Total operating expense
|
151,054
|
156,030
|
151,193
|
149,990
|
146,201
|
||||||||||
Nonoperating items
|
4,978
|
-
|
-
|
8,927
|
7,314
|
||||||||||
Total noninterest expense
|
$
|
156,032
|
$
|
156,030
|
$
|
151,193
|
$
|
158,917
|
$
|
153,515
|
|||||
(g) Net income less nonoperating items. Management believes that operating income provides a useful measure of financial performance that helps investors compare the Company's fundamental operations over time.
|
|||||||||||||||
(h) Net interest income (TE) and noninterest income less noninterest expense. Management believes that PTPP profit is a useful financial measure because it enables investors to assess the Company's ability to generate capital to cover credit losses through a credit cycle.
|
9
HANCOCK HOLDING COMPANY
|
||||||||||||||||||||
PERIOD-END BALANCE SHEET
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||
(dollars in thousands)
|
3/31/2016
|
12/31/2015
|
9/30/2015
|
6/30/2015
|
3/31/2015
|
|||||||||||||||
ASSETS
|
||||||||||||||||||||
Commercial non-real estate loans
|
$
|
7,145,406
|
$
|
6,995,824
|
$
|
6,345,994
|
$
|
6,185,684
|
$
|
5,987,084
|
||||||||||
Construction and land development loans
|
1,095,414
|
1,151,950
|
1,085,585
|
1,120,947
|
1,113,510
|
|||||||||||||||
Commercial real estate loans
|
3,676,092
|
3,412,551
|
3,327,386
|
3,212,833
|
3,150,103
|
|||||||||||||||
Residential mortgage loans
|
2,000,967
|
2,049,524
|
2,013,789
|
1,955,837
|
1,913,885
|
|||||||||||||||
Consumer loans
|
2,060,245
|
2,093,465
|
1,990,296
|
1,869,451
|
1,759,804
|
|||||||||||||||
Total loans
|
15,978,124
|
15,703,314
|
14,763,050
|
14,344,752
|
13,924,386
|
|||||||||||||||
Loans held for sale
|
24,001
|
20,434
|
19,764
|
21,304
|
19,950
|
|||||||||||||||
Securities
|
4,667,837
|
4,463,792
|
4,548,922
|
4,445,452
|
4,107,904
|
|||||||||||||||
Short-term investments
|
151,551
|
565,555
|
194,414
|
598,455
|
515,797
|
|||||||||||||||
Earning assets
|
20,821,513
|
20,753,095
|
19,526,150
|
19,409,963
|
18,568,037
|
|||||||||||||||
Allowance for loan losses
|
(217,794)
|
|
(181,179)
|
|
(139,576)
|
|
(131,087)
|
|
(128,386)
|
|
||||||||||
Goodwill
|
621,193
|
621,193
|
621,193
|
621,193
|
621,193
|
|||||||||||||||
Other intangible assets, net
|
102,414
|
107,538
|
113,229
|
119,256
|
125,404
|
|||||||||||||||
Other assets
|
1,482,044
|
1,532,958
|
1,481,797
|
1,513,499
|
1,532,491
|
|||||||||||||||
Total assets
|
$
|
22,809,370
|
$
|
22,833,605
|
$
|
21,602,793
|
$
|
21,532,824
|
$
|
20,718,739
|
||||||||||
LIABILITIES
|
||||||||||||||||||||
Noninterest-bearing deposits
|
$
|
7,108,598
|
$
|
7,276,127
|
$
|
6,075,558
|
$
|
6,180,814
|
$
|
6,201,403
|
||||||||||
Interest-bearing transaction and savings deposits
|
7,043,484
|
6,767,881
|
7,360,677
|
6,994,603
|
6,576,658
|
|||||||||||||||
Interest-bearing public fund deposits
|
2,152,903
|
2,253,645
|
1,768,133
|
1,962,589
|
1,828,559
|
|||||||||||||||
Time deposits
|
2,351,165
|
2,051,259
|
2,235,580
|
2,163,782
|
2,253,865
|
|||||||||||||||
Total interest-bearing deposits
|
11,547,552
|
11,072,785
|
11,364,390
|
11,120,974
|
10,659,082
|
|||||||||||||||
Total deposits
|
18,656,150
|
18,348,912
|
17,439,948
|
17,301,788
|
16,860,485
|
|||||||||||||||
Short-term borrowings
|
1,100,787
|
1,423,644
|
1,049,182
|
1,079,193
|
755,250
|
|||||||||||||||
Long-term debt
|
471,245
|
490,145
|
491,820
|
501,760
|
510,235
|
|||||||||||||||
Other liabilities
|
160,148
|
157,761
|
168,282
|
220,043
|
167,671
|
|||||||||||||||
Total liabilities
|
20,388,330
|
20,420,462
|
19,149,232
|
19,102,784
|
18,293,641
|
|||||||||||||||
COMMON SHAREHOLDERS' EQUITY
|
||||||||||||||||||||
Common stock net of treasury and capital surplus
|
1,719,454
|
1,715,794
|
1,717,959
|
1,730,344
|
1,726,736
|
|||||||||||||||
Retained earnings
|
762,652
|
777,944
|
781,769
|
759,780
|
744,131
|
|||||||||||||||
Accumulated other comprehensive income
|
(61,066)
|
|
(80,595)
|
|
(46,167)
|
|
(60,084)
|
|
(45,769)
|
|
||||||||||
Total common shareholders' equity
|
2,421,040
|
2,413,143
|
2,453,561
|
2,430,040
|
2,425,098
|
|||||||||||||||
Total liabilities & shareholders' equity
|
$
|
22,809,370
|
$
|
22,833,605
|
$
|
21,602,793
|
$
|
21,532,824
|
$
|
20,718,739
|
||||||||||
CAPITAL RATIOS
|
||||||||||||||||||||
Tangible common equity
|
$
|
1,697,434
|
$
|
1,684,388
|
$
|
1,719,108
|
$
|
1,689,550
|
$
|
1,678,453
|
||||||||||
Tier 1 capital (i)
|
1,822,185
|
1,844,992
|
1,848,418
|
1,837,369
|
1,812,010
|
|||||||||||||||
Common equity (period-end) as a percent of total assets (period-end)
|
10.61
|
%
|
10.57
|
%
|
11.36
|
%
|
11.29
|
%
|
11.70
|
%
|
||||||||||
Tangible common equity ratio
|
7.69
|
%
|
7.62
|
%
|
8.24
|
%
|
8.13
|
%
|
8.40
|
%
|
||||||||||
Leverage (Tier 1) ratio (i)
|
8.15
|
%
|
8.55
|
%
|
8.85
|
%
|
9.07
|
%
|
9.17
|
%
|
||||||||||
Tier 1 risk-based capital ratio (i)
|
9.71
|
%
|
9.96
|
%
|
10.56
|
%
|
10.77
|
%
|
10.86
|
%
|
||||||||||
Total risk-based capital ratio (i)
|
11.78
|
%
|
11.86
|
%
|
12.32
|
%
|
12.53
|
%
|
12.77
|
%
|
||||||||||
(i) Estimated for most recent period-end.
|
10
HANCOCK HOLDING COMPANY
|
|||||||||||
AVERAGE BALANCE SHEET
|
|||||||||||
(Unaudited)
|
|||||||||||
Three Months Ended
|
|||||||||||
(dollars in thousands)
|
3/31/2016
|
12/31/2015
|
3/31/2015
|
||||||||
ASSETS
|
|||||||||||
Commercial non-real estate loans
|
$
|
7,066,298
|
$
|
6,643,961
|
$
|
5,995,687
|
|||||
Construction and land development loans
|
1,147,984
|
1,100,502
|
1,121,059
|
||||||||
Commercial real estate loans
|
3,498,920
|
3,384,409
|
3,118,522
|
||||||||
Residential mortgage loans
|
2,058,514
|
2,028,688
|
1,902,873
|
||||||||
Consumer loans
|
2,077,054
|
2,040,672
|
1,731,256
|
||||||||
Total loans
|
15,848,770
|
15,198,232
|
13,869,397
|
||||||||
Loans held for sale
|
14,822
|
16,717
|
15,567
|
||||||||
Securities (j)
|
4,528,090
|
4,480,972
|
3,772,997
|
||||||||
Short-term investments
|
518,986
|
444,511
|
657,878
|
||||||||
Earning assets
|
20,910,668
|
20,140,432
|
18,315,839
|
||||||||
Allowance for loan losses
|
(183,264)
|
|
(140,798)
|
|
(130,217)
|
||||||
Goodwill and other intangible assets
|
726,094
|
731,414
|
750,705
|
||||||||
Other assets
|
1,479,017
|
1,440,168
|
1,505,648
|
||||||||
Total assets
|
$
|
22,932,515
|
$
|
22,171,216
|
$
|
20,441,975
|
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|||||||||||
Noninterest-bearing deposits
|
$
|
7,033,680
|
$
|
6,709,188
|
$
|
5,924,196
|
|||||
Interest-bearing transaction and savings deposits
|
6,815,703
|
7,065,338
|
6,506,812
|
||||||||
Interest-bearing public fund deposits
|
2,173,435
|
1,834,302
|
1,815,445
|
||||||||
Time deposits
|
2,258,936
|
2,212,656
|
2,238,806
|
||||||||
Total interest-bearing deposits
|
11,248,074
|
11,112,296
|
10,561,063
|
||||||||
Total deposits
|
18,281,754
|
17,821,484
|
16,485,259
|
||||||||
Short-term borrowings
|
1,564,804
|
1,229,603
|
920,436
|
||||||||
Long-term debt
|
483,348
|
490,761
|
411,054
|
||||||||
Other liabilities
|
170,862
|
175,888
|
177,356
|
||||||||
Common shareholders' equity
|
2,431,747
|
2,453,480
|
2,447,870
|
||||||||
Total liabilities & shareholders' equity
|
$
|
22,932,515
|
$
|
22,171,216
|
$
|
20,441,975
|
|||||
(j) Average securities does not include unrealized holding gains/losses on available for sale securities.
|
11
HANCOCK HOLDING COMPANY
|
||||||||||||||||||||||||||
AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY
|
||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||
Three Months Ended
|
||||||||||||||||||||||||||
3/31/2016
|
12/31/2015
|
3/31/2015
|
||||||||||||||||||||||||
(dollars in millions)
|
Volume
|
Interest
|
Rate
|
Volume
|
Interest
|
Rate
|
Volume
|
Interest
|
Rate
|
|||||||||||||||||
AVERAGE EARNING ASSETS
|
||||||||||||||||||||||||||
Commercial & real estate loans (TE) (l)
|
$
|
11,713.2
|
$
|
111.7
|
3.83
|
%
|
$
|
11,128.8
|
$
|
106.2
|
3.79
|
%
|
$
|
10,235.2
|
$
|
106.8
|
4.23
|
%
|
||||||||
Residential mortgage loans
|
2,058.5
|
21.3
|
4.13
|
%
|
2,028.7
|
20.6
|
4.07
|
%
|
1,902.9
|
20.4
|
4.30
|
%
|
||||||||||||||
Consumer loans
|
2,077.1
|
26.3
|
5.10
|
%
|
2,040.7
|
25.9
|
5.03
|
%
|
1,731.3
|
21.9
|
5.13
|
%
|
||||||||||||||
Loan fees & late charges
|
-
|
(0.8)
|
|
0.00
|
%
|
-
|
(0.5)
|
|
0.00
|
%
|
-
|
0.3
|
0.00
|
%
|
||||||||||||
Total loans (TE) (m)
|
15,848.8
|
158.5
|
4.02
|
%
|
15,198.2
|
152.2
|
3.98
|
%
|
13,869.4
|
149.4
|
4.36
|
%
|
||||||||||||||
Loans held for sale
|
14.8
|
0.2
|
4.28
|
%
|
16.7
|
0.2
|
4.40
|
%
|
15.6
|
0.1
|
2.45
|
%
|
||||||||||||||
US Treasury and government agency securities
|
50.1
|
0.2
|
1.67
|
%
|
50.0
|
0.2
|
1.68
|
%
|
275.0
|
1.1
|
1.58
|
%
|
||||||||||||||
CMOs and mortgage backed securities
|
4,132.8
|
22.9
|
2.21
|
%
|
4,219.1
|
23.3
|
2.20
|
%
|
3,290.5
|
18.6
|
2.26
|
%
|
||||||||||||||
Municipals (TE) (l)
|
339.1
|
3.6
|
4.27
|
%
|
205.8
|
2.3
|
4.45
|
%
|
195.8
|
2.3
|
4.61
|
%
|
||||||||||||||
Other securities
|
6.1
|
0.0
|
1.85
|
%
|
6.1
|
0.0
|
1.80
|
%
|
11.6
|
0.1
|
4.47
|
%
|
||||||||||||||
Total securities (TE) (k)
|
4,528.1
|
26.7
|
2.36
|
%
|
4,481.0
|
25.8
|
2.30
|
%
|
3,772.9
|
22.1
|
2.35
|
%
|
||||||||||||||
Total short-term investments
|
519.0
|
0.6
|
0.47
|
%
|
444.5
|
0.3
|
0.30
|
%
|
657.9
|
0.4
|
0.22
|
%
|
||||||||||||||
Average earning assets yield (TE)
|
$
|
20,910.7
|
186.0
|
3.57
|
%
|
$
|
20,140.4
|
178.5
|
3.53
|
%
|
$
|
18,315.8
|
172.0
|
3.79
|
%
|
|||||||||||
INTEREST-BEARING LIABILITIES
|
||||||||||||||||||||||||||
Interest-bearing transaction and savings deposits
|
$
|
6,815.7
|
4.7
|
0.28
|
%
|
$
|
7,065.3
|
4.4
|
0.25
|
%
|
$
|
6,506.8
|
2.2
|
0.14
|
%
|
|||||||||||
Time deposits
|
2,258.9
|
4.9
|
0.88
|
%
|
2,212.7
|
4.3
|
0.76
|
%
|
2,238.8
|
3.7
|
0.67
|
%
|
||||||||||||||
Public funds
|
2,173.5
|
2.1
|
0.38
|
%
|
1,834.3
|
1.5
|
0.32
|
%
|
1,815.4
|
1.2
|
0.27
|
%
|
||||||||||||||
Total interest-bearing deposits
|
11,248.1
|
11.7
|
0.42
|
%
|
11,112.3
|
10.2
|
0.36
|
%
|
10,561.0
|
7.1
|
0.27
|
%
|
||||||||||||||
Short-term borrowings
|
1,564.8
|
1.0
|
0.26
|
%
|
1,229.6
|
0.4
|
0.14
|
%
|
920.5
|
0.2
|
0.08
|
%
|
||||||||||||||
Long-term debt
|
483.3
|
5.1
|
4.20
|
%
|
490.8
|
5.3
|
4.26
|
%
|
411.1
|
3.6
|
3.58
|
%
|
||||||||||||||
Total borrowings
|
2,048.1
|
6.1
|
1.19
|
%
|
1,720.4
|
5.7
|
1.32
|
%
|
1,331.6
|
3.8
|
1.16
|
%
|
||||||||||||||
Total interest-bearing liabilities cost
|
13,296.2
|
17.8
|
0.54
|
%
|
12,832.7
|
15.9
|
0.49
|
%
|
11,892.6
|
10.9
|
0.37
|
%
|
||||||||||||||
Net interest-free funding sources
|
7,614.5
|
7,307.7
|
6,423.2
|
|||||||||||||||||||||||
Total cost of funds
|
20,910.7
|
17.8
|
0.34
|
%
|
20,140.4
|
15.9
|
0.31
|
%
|
18,315.8
|
10.9
|
0.24
|
%
|
||||||||||||||
Net Interest Spread (TE)
|
$
|
168.2
|
3.03
|
%
|
$
|
162.6
|
3.03
|
%
|
$
|
161.1
|
3.42
|
%
|
||||||||||||||
Net Interest Margin (TE)
|
$
|
20,910.7
|
$
|
168.2
|
3.23
|
%
|
$
|
20,140.4
|
$
|
162.6
|
3.21
|
%
|
$
|
18,315.8
|
$
|
161.1
|
3.55
|
%
|
||||||||
(k) Average securities does not include unrealized holding gains/losses on available for sale securities.
|
||||||||||||||||||||||||||
(l) Tax equivalent (te) amounts are calculated using a marginal federal tax rate of 35%.
|
||||||||||||||||||||||||||
(m) Includes nonaccrual loans.
|
12
HANCOCK HOLDING COMPANY
|
||||||||||||
ASSET QUALITY INFORMATION
|
||||||||||||
(Unaudited)
|
||||||||||||
Three Months Ended
|
||||||||||||
(dollars in thousands)
|
3/31/2016
|
12/31/2015
|
3/31/2015
|
|||||||||
Nonaccrual loans (n)
|
$
|
237,303
|
$
|
159,713
|
$
|
90,821
|
||||||
Restructured loans - still accruing
|
45,620
|
4,297
|
7,564
|
|||||||||
Total nonperforming loans
|
282,923
|
164,010
|
98,385
|
|||||||||
ORE and foreclosed assets
|
24,032
|
27,133
|
42,956
|
|||||||||
Total nonperforming assets
|
$
|
306,955
|
$
|
191,143
|
$
|
141,341
|
||||||
Nonperforming assets as a percent of loans, ORE and foreclosed assets
|
1.92
|
%
|
1.22
|
%
|
1.01
|
%
|
||||||
Accruing loans 90 days past due
|
$
|
9,226
|
$
|
7,653
|
$
|
5,872
|
||||||
Accruing loans 90 days past due as a percent of loans
|
0.06
|
%
|
0.05
|
%
|
0.04
|
%
|
||||||
Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets
|
1.98 | % | 1.26 | % | 1.05 | % | ||||||
ALLOWANCE FOR LOAN LOSSES
|
||||||||||||
Beginning Balance
|
$
|
181,179
|
$
|
139,576
|
$
|
128,762
|
||||||
Net provision for loan losses - FDIC acquired loans
|
(496
|
)
|
(1,669
|
)
|
(70
|
)
|
||||||
Provision for loan losses - non-FDIC acquired loans
|
60,532
|
51,865
|
6,224
|
|||||||||
Net provision for loan losses
|
60,036
|
50,196
|
6,154
|
|||||||||
(Decrease)increase in FDIC loss share receivable
|
(2,189
|
)
|
(816
|
)
|
(421
|
)
|
||||||
Net charge-offs - FDIC acquired
|
(67
|
)
|
(100
|
)
|
2,455
|
|||||||
Charge-offs - non-FDIC acquired
|
24,693
|
11,602
|
7,460
|
|||||||||
Recoveries - non-FDIC acquired
|
(3,394
|
)
|
(3,725
|
)
|
(3,806
|
)
|
||||||
Net charge-offs
|
21,232
|
7,777
|
6,109
|
|||||||||
Ending Balance
|
$
|
217,794
|
$
|
181,179
|
$
|
128,386
|
||||||
Allowance for loan losses as a percent of period-end loans
|
1.36
|
%
|
1.15
|
%
|
0.92
|
%
|
||||||
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due
|
74.55 | % | 105.54 | % | 123.14 | % | ||||||
NET CHARGE-OFF INFORMATION
|
||||||||||||
Net charge-offs - non-FDIC acquired:
|
||||||||||||
Commercial & real estate loans
|
$
|
17,076
|
$
|
2,465
|
$
|
474
|
||||||
Residential mortgage loans
|
(126
|
)
|
75
|
904
|
||||||||
Consumer loans
|
4,349
|
5,337
|
2,276
|
|||||||||
Total net charge-offs - non-FDIC acquired
|
$
|
21,299
|
$
|
7,877
|
$
|
3,654
|
||||||
Net charge-offs - non-FDIC acquired to average loans:
|
||||||||||||
Commercial & real estate loans
|
0.59
|
%
|
0.09
|
%
|
0.02
|
%
|
||||||
Residential mortgage loans
|
(0.02
|
)%
|
0.01
|
%
|
0.19
|
%
|
||||||
Consumer loans
|
0.84
|
%
|
1.04
|
%
|
0.53
|
%
|
||||||
Total net charge-offs - non-FDIC acquired to average loans
|
0.54
|
%
|
0.21
|
%
|
0.11
|
%
|
||||||
(n) Nonaccrual loans and accruing loans past due 90 days or more do not include acquired credit-impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan. Included in nonaccrual loans are $18.3 million, $8.8 million, and $5.0 million at 3/31/16, 12/31/15 and 3/31/15, respectively, in nonaccruing restructured loans.
|
13
HANCOCK HOLDING COMPANY
|
||||||||||||||||||||
ASSET QUALITY INFORMATION
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
Three months ended
|
||||||||||||||||||||
(dollars in thousands)
|
3/31/2016
|
12/31/2015
|
9/30/2015
|
6/30/2015
|
3/31/2015
|
|||||||||||||||
Nonaccrual loans (n)
|
$
|
237,303
|
$
|
159,713
|
$
|
166,945
|
$
|
118,445
|
$
|
90,821
|
||||||||||
Restructured loans - still accruing
|
45,620
|
4,297
|
5,779
|
7,966
|
7,564
|
|||||||||||||||
Total nonperforming loans
|
282,923
|
164,010
|
172,724
|
126,411
|
98,385
|
|||||||||||||||
ORE and foreclosed assets
|
24,032
|
27,133
|
33,599
|
38,630
|
42,956
|
|||||||||||||||
Total nonperforming assets
|
$
|
306,955
|
$
|
191,143
|
$
|
206,323
|
$
|
165,041
|
$
|
141,341
|
||||||||||
Nonperforming assets as a percent of loans, ORE and foreclosed assets
|
1.92
|
%
|
1.22
|
%
|
1.39
|
%
|
1.15
|
%
|
1.01
|
%
|
||||||||||
Accruing loans 90 days past due
|
$
|
9,226
|
$
|
7,653
|
$
|
5,876
|
$
|
3,478
|
$
|
5,872
|
||||||||||
Accruing loans 90 days past due as a percent of loans
|
0.06
|
%
|
0.05
|
%
|
0.04
|
%
|
0.02
|
%
|
0.04
|
%
|
||||||||||
Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets
|
1.98
|
%
|
1.26
|
%
|
1.43
|
%
|
1.17
|
%
|
1.05
|
%
|
||||||||||
Allowance for loan losses
|
$
|
217,794
|
$
|
181,179
|
$
|
139,576
|
$
|
131,087
|
$
|
128,386
|
||||||||||
Allowance for loan losses as a percent of period-end loans
|
1.36
|
%
|
1.15
|
%
|
0.95
|
%
|
0.91
|
%
|
0.92
|
%
|
||||||||||
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due
|
74.55
|
%
|
105.54
|
%
|
78.15
|
%
|
100.92
|
%
|
123.14
|
%
|
||||||||||
Provision for loan losses
|
$
|
60,036
|
$
|
50,196
|
$
|
10,080
|
$
|
6,608
|
$
|
6,154
|
||||||||||
NET CHARGE-OFF INFORMATION
|
||||||||||||||||||||
Net charge-offs - non-FDIC acquired:
|
||||||||||||||||||||
Commercial & real estate loans
|
$
|
17,076
|
$
|
2,465
|
$
|
666
|
$
|
(691
|
)
|
$
|
474
|
|||||||||
Residential mortgage loans
|
(126
|
)
|
75
|
30
|
(61
|
)
|
904
|
|||||||||||||
Consumer loans
|
4,349
|
5,337
|
2,775
|
1,962
|
2,276
|
|||||||||||||||
Total net charge-offs - non-FDIC acquired
|
$
|
21,299
|
$
|
7,877
|
$
|
3,471
|
$
|
1,210
|
$
|
3,654
|
||||||||||
Net charge-offs - non-FDIC acquired to average loans:
|
||||||||||||||||||||
Commercial & real estate loans
|
0.59
|
%
|
0.09
|
%
|
0.02
|
%
|
(0.03
|
)%
|
0.02
|
%
|
||||||||||
Residential mortgage loans
|
(0.02
|
)%
|
0.01
|
%
|
0.01
|
%
|
(0.01
|
)%
|
0.19
|
%
|
||||||||||
Consumer loans
|
0.84
|
%
|
1.04
|
%
|
0.57
|
%
|
0.43
|
%
|
0.53
|
%
|
||||||||||
Total net charge-offs - non-FDIC acquired to average loans
|
0.54
|
%
|
0.21
|
%
|
0.09
|
%
|
0.03
|
%
|
0.11
|
%
|
||||||||||
AVERAGE LOANS
|
||||||||||||||||||||
Commercial & real estate loans
|
$
|
11,713,202
|
$
|
11,128,872
|
$
|
10,608,244
|
$
|
10,398,508
|
$
|
10,235,268
|
||||||||||
Residential mortgage loans
|
2,058,514
|
2,028,688
|
1,977,990
|
1,930,553
|
1,902,873
|
|||||||||||||||
Consumer loans
|
2,077,054
|
2,040,672
|
1,925,240
|
1,809,843
|
1,731,256
|
|||||||||||||||
Total average loans
|
$
|
15,848,770
|
$
|
15,198,232
|
$
|
14,511,474
|
$
|
14,138,904
|
$
|
13,869,397
|
||||||||||
(n) Nonaccrual loans and accruing loans past due 90 days or more do not include acquired credit-impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan. Included in nonaccrual loans are $18.3 million, $8.8 million, $4.9 million, $4.9 million, and $5.0 million at 3/31/16, 12/31/15, 9/30/15, 06/30/15, and 03/31/15, respectively, in nonaccruing restructured loans.
|
14
HANCOCK HOLDING COMPANY
|
|||||||||||
SUPPLEMENTAL ASSET QUALITY INFORMATION
|
|||||||||||
(Unaudited)
|
|||||||||||
Originated Loans
|
Acquired Loans (o)
|
FDIC Acquired (p)
|
Total
|
||||||||
(dollars in thousands)
|
3/31/2016
|
||||||||||
Nonaccrual loans (q)
|
$
|
234,395
|
$
|
2,908
|
-
|
$
|
237,303
|
||||
Restructured loans - still accruing
|
45,620
|
-
|
-
|
45,620
|
|||||||
Total nonperforming loans
|
280,015
|
2,908
|
-
|
282,923
|
|||||||
ORE and foreclosed assets (r)
|
16,403
|
-
|
7,629
|
24,032
|
|||||||
Total nonperforming assets
|
$
|
296,418
|
$
|
2,908
|
$
|
7,629
|
$
|
306,955
|
|||
Accruing loans 90 days past due
|
$
|
9,226
|
-
|
-
|
$
|
9,226
|
|||||
Allowance for loan losses
|
$
|
197,285
|
$
|
7
|
$
|
20,502
|
$
|
217,794
|
|||
12/31/2015
|
|||||||||||
Nonaccrual loans (q)
|
$
|
156,721
|
$
|
2,992
|
-
|
$
|
159,713
|
||||
Restructured loans - still accruing
|
4,297
|
-
|
-
|
4,297
|
|||||||
Total nonperforming loans
|
161,018
|
2,992
|
-
|
164,010
|
|||||||
ORE and foreclosed assets (r)
|
18,580
|
-
|
8,553
|
27,133
|
|||||||
Total nonperforming assets
|
$
|
179,598
|
$
|
2,992
|
$
|
8,553
|
$
|
191,143
|
|||
Accruing loans 90 days past due
|
$
|
7,653
|
-
|
-
|
$
|
7,653
|
|||||
Allowance for loan losses
|
$
|
158,026
|
$
|
33
|
$
|
23,120
|
$
|
181,179
|
|||
Originated Loans
|
Acquired Loans (o)
|
FDIC Acquired (p)
|
Total
|
||||||||
LOANS OUTSTANDING
|
3/31/2016
|
||||||||||
Commercial non-real estate loans
|
$
|
7,088,146
|
$
|
51,949
|
$
|
5,311
|
$
|
7,145,406
|
|||
Construction and land development loans
|
1,086,382
|
2,250
|
6,782
|
1,095,414
|
|||||||
Commercial real estate loans
|
3,504,803
|
156,285
|
15,004
|
3,676,092
|
|||||||
Residential mortgage loans
|
1,839,889
|
1,116
|
159,962
|
2,000,967
|
|||||||
Consumer loans
|
2,048,068
|
20
|
12,157
|
2,060,245
|
|||||||
Total loans
|
$
|
15,567,288
|
$
|
211,620
|
$
|
199,216
|
$
|
15,978,124
|
|||
Change in loan balance from previous quarter
|
$
|
308,701
|
$
|
(29,810)
|
|
$
|
(4,081)
|
|
$
|
274,810
|
|
12/31/2015
|
|||||||||||
Commercial non-real estate loans
|
$
|
6,930,453
|
$
|
59,843
|
$
|
5,528
|
$
|
6,995,824
|
|||
Construction and land development loans
|
1,139,743
|
5,080
|
7,127
|
1,151,950
|
|||||||
Commercial real estate loans
|
3,220,509
|
176,460
|
15,582
|
3,412,551
|
|||||||
Residential mortgage loans
|
1,887,256
|
27
|
162,241
|
2,049,524
|
|||||||
Consumer loans
|
2,080,626
|
20
|
12,819
|
2,093,465
|
|||||||
Total loans
|
$
|
15,258,587
|
$
|
241,430
|
$
|
203,297
|
$
|
15,703,314
|
|||
Change in loan balance from previous quarter
|
$
|
1,180,400
|
$
|
(228,589)
|
|
$
|
(11,547)
|
|
$
|
940,264
|
|
(o) Loans which have been acquired and no allowance brought forward in accordance with acquisition accounting. Acquired-performing loans in pools with fully accreted purchase fair value discounts are reported as originated loans.
|
|||||||||||
(p) Loans acquired in an FDIC-assisted transaction. Non-single family loss share agreement expired at 12/31/14. As of 3/31/16, $168.1 million in loans and $1.1 million in ORE remain covered by the FDIC single family loss share agreement, providing considerable protection against credit risk. As of 12/31/15, $170.1 million in loans and $1.7 million in ORE remained covered by the FDIC single family loss share agreement.
|
|||||||||||
(q) Included in originated nonaccrual loans are $18.3 million and $8.8 million at 3/31/16 and 12/31/15, respectively, in nonaccruing restructured loans.
|
|||||||||||
(r) ORE received in settlement of acquired loans is no longer subject to purchase accounting guidance and has been included with ORE from originated loans. ORE received in settlement of covered loans remains covered under the FDIC loss share agreements.
|
15
4/19/2016 First Quarter 2016 Financial Results
16
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 or our potential plans and strategies for the future. Hancock’s ability to accurately project results, predict the effects of future plans or strategies, or predict market or economic developments is inherently limited. We believe that the expectations reflected or implied by any 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 or outcomes 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 10-K for the year ended December 31, 2015, and as updated by the Company’s subsequent SEC filings. Hancock 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. Forward Looking Statements
17
Corporate Profile (as of March 31, 2016) $22.8 billion in Total Assets$16.0 billion in Total Loans$18.7 billion in Total DepositsTangible Common Equity (TCE) 7.69%Nearly 200 banking locations and 275 ATMs across a five-state footprintApproximately 3,800 employees corporate-wideRated among the strongest, safest financial institutions in the country by BauerFinancial, Inc.Earned top customer service marks with Greenwich Excellence Awards
18
Core pre-tax, pre-provision income $76.4 million, up $8.4 million or 12%Loans increased $275 million, or 7% (LQA)Deposits increased $307 million, or 7% (LQA)Core revenue increased $4.0 million; core NIM up 2 bps (up 4 bps excluding interest reversals)Allowance for the energy portfolio increased $33 million, to $111 million, or almost 7% of energy loans Tangible common equity (TCE) ratio up 7 bps to 7.69%Includes $5.0 million (pre-tax), or $.04 per share, nonoperating items related to separation pay ** Noninterest expense to total revenue (TE) excluding amortization of purchased intangibles, nonoperating items, and securities transactions. First Quarter 2016 Highlights (compared to fourth quarter 2015) ($s in millions; except per share data) 1Q16 4Q15 Fav/(unfav) Net Income $3.8 $15.3 (75%) Earnings Per Share $.05 $.19 (74%) Provision for loan losses $60.0 $50.2 (20%) Nonoperating items (pre-tax) $5.0 --- N/M Earnings Per Share – Operating $.09 $.19 (53%) Return on Assets (operating) (%) 0.12 0.27 (15bps) Return on Tangible Common Equity (operating) (%) 1.67 3.53 (186bps) Total Loans (period-end) $15,978 $15,703 2% Total Deposits (period-end) $18,656 $18,349 2% Net Interest Margin (%) 3.23 3.21 2bps Net Interest Margin (%) (core) 3.12 3.10 2bps Net Charge-offs (%) (non-covered) 0.54 0.21 (33bps) Tangible Common Equity (%) 7.69 7.62 7bps Efficiency Ratio** (%) 64.5 67.6 316bps Net Purchase Accounting Income (pre-tax) -$1.1 -$1.7 (35%) Net Income (excluding tax-effected impact of net purchase accounting items and nonoperating items) $7.8 $16.4 (53%) E.P.S. (excluding tax-effected impact of net purchase accounting items and nonoperating items) $.10 $.21 (52%) Pre-tax, pre-provision income (core) $76.4 $68.0 12%
19
Linked quarter growth in core pre-tax, pre-provision income +12%Year-over-year growth in core pre-tax, pre-provision income +20% Growth in Core Pre-Tax, Pre-Provision Income
20
Well-Diversified Loan Growth
21
Energy Portfolio Overview
22
Energy Portfolio Overview (cont’d) Net increase in outstandings of $53 million and a $79 million reduction in total commitmentsApproximately $33 million linked-quarter increase in RBL outstandings and a $53 million reduction in total commitments Approximately $20 million linked-quarter increase in support sector outstandings
23
During 1Q16 there were over $300 million in outstanding energy credits that were downgraded to criticized status Downgrades were mainly related to the application of new regulatory guidance which was used in the recent shared national credit (SNC) exam that was completed on March 15, 2016Approximately 75% of the increase in criticized energy loans was from reserve-based (RBL) credits identified in the SNC exam or based on the new regulatory guidance Several of the credits downgraded in the exam, totaling approximately $80 million, were moved to nonaccrual statusDue to the changes noted above, and impact of the prolonged low ebb of the energy cycle, the company increased its allowance for loan losses on the energy portfolio and booked a $60 million total provision for credit losses in the quarterApproximately $50 million of the provision expense was related to the energy portfolioAs a result, and after energy charge-offs of approximately $17 million, the allowance for the energy portfolio was increased $33 million, to $111.2 million, or almost 7% of energy loans Energy Portfolio Overview (cont’d)
24
Borrowing base redeterminations twice per year (spring and fall); all credits are under review and adjustments are being made to overall commitment levelsRBL commitments expected to be reduced approximately 15-20% on average in the current redetermination due to continued low commodity pricesOur clients breakeven at different prices/barrel oil Breakeven varies depending on the basinOur customers are diversified across 12 primary basins in the U.S. and in the Gulf of MexicoPriority, secured loans; approximately 60% oil, 40% gasLend only on proved reserves (on a risked basis); 90%+ are covered by Proved Developed Producing Reserves aloneCredits with working capital lines have 50% line utilization Energy Portfolio Overview (cont’d)
25
Management currently estimates 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 – Mar-16) total $21 million; includes $17 million in 1Q16 Energy Allowance and Category Trends
Management currently estimates 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 – Mar-16) total $21 million; includes $17 million in 1Q16 Energy Allowance and Category Trends
26
NPA ratio 1.92%, up 70 bps linked-quarter Nonperforming assets totaled $307 million, up $116 million from December 31, 2015Nonperforming energy loans totaled $159 million at March 31, 2016, up $90 million from last quarterProvision for loan losses was $60.0 million, up $9.8 million from 4Q15Increase for energy allowance added $33 million to first quarter 2016 loan loss provisionNon-FDIC acquired net charge-offs totaled $21.3 million, or 54 bps, up from $7.9 million, or 21 bps, in 4Q15Energy charge-offs in the first quarter of 2016 totaled $17.4 millionCriticized commercial loans totaled $1.1 billion at March 31, 2016, up $352 million from December 31, 2015Criticized energy loans totaled $761 million at March 31, 2016, up $309 million linked-quarter Asset Quality Measures Reflect Impact Of Energy Cycle
27
The allowance for loan losses was $217.8 million (1.36%) up $36.6 million from $181.2 million (1.15%) linked-quarterThe allowance maintained on the non-FDIC acquired portion of the loan portfolio increased $39.2 million linked-quarter, totaling $197.3 million, while the allowance on the FDIC acquired loan portfolio decreased $2.6 million linked-quarterImpact of the current energy cycle on the allowance:The first quarter’s energy allowance increase of $33.0 million was mainly driven by an increase in criticized loans towards the end of the first quarter, largely reflecting the results of the semi-annual shared national credit exam that was concluded in mid MarchNet changes in impaired credits, including updated collateral values, contributed $2 million of increaseQualitative factors related to depth and duration of the cycle added $12 million; we now expect a prolonged period of oversupply which indicates that the cycle will be deeper and longer than prior expectationsRisk rating changes added $19 million of the increaseALLL for energy credits was $111 million, or 6.81%, at March 31, 2016, up from $78.2 million, or 4.95%, at December 31, 2015 Should pricing pressures on oil continue, we could continue to see downward pressure on risk ratings that could lead to additional provision expense in future quartersImpact and severity will depend on overall oil prices and the duration of the cycle Allowance For Loan Losses
28
Portfolio totaled $4.7 billion, up $204 million, or 5% linked-quarter Yield 2.36% - up 6 bps linked-quarterUnrealized gain (net) of $33.2 million on AFS54% HTM, 46% AFSDuration 3.69 compared to 3.89 at 12-31-15Balance sheet is asset sensitive over a 2 year period to rising interest rates under various shock scenariosIRR modeling is based on conservative assumptionsFlat balance sheetLoan portfolio 54% variable (with 57% LIBOR-based)Modeled lag in deposit rate increasesConservative % DDA attrition for certain increases in ratesNo energy-related securities in the portfolio Securities Portfolio
29
Total deposits $18.7 billion, up $307 million, or 2%, linked-quarterNoninterest-bearing demand deposits (DDA) decreased $168 millionInterest-bearing transaction and savings deposits increased $276 millionTime deposits increased $300 million Public fund deposits decreased $101 millionFunding mix remained strongDDA comprised 38% of total period-end depositsCost of funds increased 3 basis points to 34 bps Solid Levels Of Core Deposit Funding
30
Reported net interest margin (NIM) 3.23%, up 2 bps linked-quarter Core NIM of 3.12% increased 2 bps linked-quarterCore loan yield up 5 bps Yield on bond portfolio up 6 bps Cost of funds up 3 bpsNet interest margin up 4 bps after adjusting for approximately $0.9 million of interest reversalsProjected accretion will still lead to a difference in reported and core NIMs Core NIM Reflects Improving Asset Yields
31
Focus On Growing Core Noninterest Income Across Business Lines
32
Quarterly Expenses Decreased; Remain Focused On Expense Control
33
TCE ratio 7.69%, up 7 bps linked-quarterBalance sheet change +1 bpEarnings +2 bpsIntangible amortization +2bpsOCI & other, net +11 bpsDividends – 9 bpsCommon stock buyback placed on hold in 4Q15; no shares repurchased during the first quarter of 2016Will 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 maintaining quarterly dividendsStock buyback on hold M&A on hold in light of current stock price Solid Capital Levels
34
As we have previously noted, the company’s 2016 objectives are detailed below:Loan growth 5-7% (EOP)Fund loan growth primarily with depositsCore pre-tax, pre-provision growth of 25% compared to 2014Assumes no additional rate hikes in 2016Expect core revenue growth of 9-10%Expect expense growth of 2% or lessBased on management’s current outlook for the energy cycle, provision for loan losses in the range of $105 - $145 million for the full year of 2016 2016 Strategic Objectives
35
Near-Term Outlook
36
Appendix: EPS Calculation (Operating)
37
* Excess cash recoveries include cash collected on certain zero carrying value acquired loan pools above expected amounts. Appendix: Purchase Accounting Adjustments Core NII & NIM Reconciliation
38
Appendix: Historical Energy Data
Appendix: Historical Energy Data
39
Impact of Purchase Accounting Adjustments(projections will be updated quarterly; subject to change) $s in millions *Projected revenue includes loan accretion from Whitney and Peoples First, offset by amortization of the Whitney bond portfolio premium and amortization of the Peoples First indemnification asset. Appendix: Purchase Accounting Impact/Trend
Impact of Purchase Accounting Adjustments(projections will be updated quarterly; subject to change) $s in millions *Projected revenue includes loan accretion from Whitney and Peoples First, offset by amortization of the Whitney bond portfolio premium and amortization of the Peoples First indemnification asset. Appendix: Purchase Accounting Impact/Trend
40
Appendix: Non-GAAP Reconciliation
41
LQA- Linked-quarter annualizedM&A – Mergers and acquisitionsNII – Net interest income NIM – Net interest marginNPA – Nonperforming assetsO&G – Oil and gasOperating Income – Operating income is defined as net income excluding tax-effected securities transactions gains or losses and nonoperating expense itemsORE – Other real estatePAA – Purchase accounting adjustments, including loan accretion from Whitney and Peoples First, offset by amortization of the Whitney bond portfolio premium, amortization of the Peoples First indemnification asset and amortization of intangiblesPTPP – Pre-tax, pre-provisionRBL – Reserve-based lendingROA – Return on average assetsRR – Risk ratingSNC – Shared National CreditTCE – Tangible common equity ratio (common shareholders’ equity less intangible assets divided by total assets less intangible assets.TE- Taxable equivalent (calculated using a federal income tax rate of 35%)Y-o-Y – Year over year 1Q16 – First quarter of 20164Q15 – Fourth quarter of 2015AFS – Available for saleALLL – Allowance for loan and lease lossesAnnualized – Calculated to reflect a rate based on a full yearCore – Excluding purchase accounting itemsCore Income – Operating income less purchase accounting adjustmentsCore NIM – Reported net interest income (TE) excluding total net purchase accounting adjustments, annualized, as a percent of average earning assetsCore Revenue – Net interest income (TE) plus noninterest income excluding purchase accounting adjustments for both categoriesCurrent Energy Cycle – Refers to the energy cycle beginning in November of 2014 through the most recent quarter endDDA – Noninterest-bearing deposit accountsE&P – Exploration and Production (Oil & Gas)Efficiency ratio – noninterest expense to total net interest (TE) and noninterest income, excluding amortization of purchased intangibles, nonoperating items, and securities transactionsEOP- End of periodEPS – Earnings per shareHTM – Held to maturityIRR – Interest rate riskLinked-quarter – current quarter compared to previous quarterLPO – Loan production office Appendix: Glossary of Terms
42
4/19/2016 First Quarter 2016 Financial Results
43