Exhibit 99.1
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
Carl J. Chaney
President & CEO
President & CEO
Carl J. Chaney
President & CEO
President & CEO
Forward-Looking Statements
Forward-Looking Statements
3
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.
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.
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.
forward-looking statements, and you are cautioned not to place undue reliance on
such forward-looking statements.
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
common stock
• Added $11.7B in assets, $6.5B in loans and $9.2B in deposits
• Pre-tax restructuring charge approximately $125 million
• Confirmed credit mark
• $463 million, or 6.7%, loan mark on Whitney’s loan portfolio
• (Significant losses already taken by Whitney from 2008 through 1Q11)
• Outlook is very positive and exciting
4
The New Hancock
The New Hancock
Whitney Acquisition Solidifies Premier Gulf South
Financial Services Franchise
Financial Services Franchise
Strategic Rationale
ü Leadership Position in the Gulf South
ü Diversified Revenue Stream with Strong Earnings Momentum, Loyal Customer Base and Attractive Deposit Funding
ü Employer of Choice, with Complimentary, Conservative Culture
ü Commanding presence in attractive markets that we know
Attractive Returns
ü Highly accretive upon realization of identified cost savings
ü 1.20+ ROAs
ü Potentially significant revenue synergies from Insurance, Cash Management, Trust, etc. are not factored in
ü Stronger internal capital generation will enable strategic and capital management flexibility
Low Risk Transaction
ü 100 years in the making
ü Markets we know and understand
ü Credit exposure “de-risked” through upfront purchase accounting mark
ü Maintaining a very strong balance sheet - capital / liquidity
ü Leadership in place and on the same page
5
Diversified Footprint Across The Gulf
South
South
Diversified Footprint Across The Gulf
South
South
As of June 30, 2011
Hancock
Whitney
6
Leading Position In Key Markets;
Building A Presence In Other Attractive Markets
Building A Presence In Other Attractive Markets
• 2-bank Holding Company
– Hancock Bank
– Whitney Bank
• 5-state footprint
• $20B in assets
• $11B in loans
• $16B in deposits
• ~300 branches
• ~400 ATMs
• ~5,000 employees
Michael M. Achary
CFO
CFO
Michael M. Achary
CFO
CFO
Purchase Accounting Items
• Impact of the acquisition is reflected in 2Q11 financial
information from the acquisition date, or only 26 days
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 forward and the loan portfolio was
reduced, or “marked” $463 million
million was not carried forward and the loan portfolio was
reduced, or “marked” $463 million
• Total nonaccrual loans and past due accruing loans do not include
purchased credit impaired loans which were written down to fair
value
purchased credit impaired loans which were written down to fair
value
8
2Q11 Financial Results
2Q11 Financial Results
* A reconciliation of net income to operating income and pre-tax, pre-provision income is included in the appendix.
** Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions and merger expenses.
($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 | $35.8 |
Net Interest Margin | 4.11% | 3.97% | 3.87% |
Net Charge-offs | 0.49% | 0.57% | 1.11% |
Tangible Common Equity | 8.09% | 11.94% | 9.32% |
Noninterest income (excluding securities transactions) as a percent of revenue (TE) | 31.43% | 32.93% | 33.23% |
Efficiency Ratio** | 65.62% | 68.21% | 65.64% |
9
As of June 30, 2011
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
10
As of June 30, 2011
Strong Core Deposit Funding
11
• Total deposits of $15.6B at June 30, 2011
• $9.2B of deposits acquired from Whitney
• Lower cost of funds for the combined
company
company
• Impact from Whitney’s favorable deposit
mix
mix
– Noninterest bearing demand deposits (DDA)
comprised 31% of total period-end deposits
compared to 18% at 3/31/11
comprised 31% of total period-end deposits
compared to 18% at 3/31/11
• Approximately $3B in CDs maturing over
the next 4 quarters
the next 4 quarters
As of June 30, 2011
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
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 adjustments (26 days)
accounting adjustments (26 days)
– $2.8 million related to the loan mark accretion
– Balance related to amortization of securities and CD portfolio
• Accretion of the loan discount and amortization of the fair value
adjustments on the securities and CD portfolios will continue to impact
the NIM and net interest income in future quarters
adjustments on the securities and CD portfolios will continue to impact
the NIM and net interest income in future quarters
12
As of June 30, 2011
Credit Quality Metrics Remain Solid
• Allowance for loan losses was $112.4 million at June 30, 2011, up $18
million from March 31, 2011
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
million of FDIC loss share coverage
• Provision for loan losses was $9.1 million
• $8.2 million for non-covered loans
• $0.9 million for FDIC covered loans
• Net charge-offs totaled $8.2 million
• ALLL/loans was 1.95% (excluding the impact of the Whitney acquired loans and FDIC covered
loans)
loans)
• Increase in nonperforming assets was related to the addition of Whitney’s
ORE portfolio
ORE portfolio
13
As of June 30, 2011
Noninterest Income
14
• 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
Peoples First acquisition
– Seasonal increase in insurance fees related to annual policy renewals
• Impact from new interchange rates related to the Durbin amendment could
lower noninterest income by:
lower noninterest income by:
– Approximately $2 - $3 million for the remainder of 2011
– Approximately $15 - $18 million in 2012
• Cross-sell opportunities expected to generate additional fee income
As of June 30, 2011
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)
(normalized = $30 million/month)
– Amortization of intangibles totaled $1.6 million
($1 million related to Whitney acquisition)
• Results included approximately $4 million in cost synergies
• Expect approximately $4.5 million per quarter in total amortization of intangibles
15
As of June 30, 2011
Illustrative Core Earnings Potential
Notes:
1. Based on 3.0% annual growth
2. As of 6/30/2011
16
n Elimination of Whitney credit expenses
n Approximately $3 billion of CDs repricing
over the next 4 quarters (avg. cost 1.29%)
over the next 4 quarters (avg. cost 1.29%)
n Investment of excess liquidity (25 bps)
($400 million invested at the end of 2Q11)
($400 million invested at the end of 2Q11)
n 72% loans/deposits at 6/30/11
n Increase in interest rates
(Asset sensitive balance sheet)
(Asset sensitive balance sheet)
n Revenue synergies
(Insurance, Trust, Cards, Cash Management)
(Insurance, Trust, Cards, Cash Management)
Potential Additional Earnings Levers
Earnings Potential
Assumed ROA*
($ millions)
1.20%
1.30%
Avg. Assets in 2013
(1)
$21.1B
$21.1B
Implied Net Income
$254
$275
Shares outstanding (millions)
(2)
84.7
84.7
Pro Forma EPS
$3.00
$3.25
* Includes only projected cost synergies
Carl J. Chaney
President & CEO
President & CEO
Carl J. Chaney
President & CEO
President & CEO
Integration Update
• Integration continues to progress as scheduled
• Professional consulting groups have been assisting with the
integration
integration
• Main systems conversion currently scheduled for 1Q12
• To-date merger costs have totaled $24 million
• Customer and employee retention is a priority
• No major customer relationship lost as a result of the merger
18
As of June 30, 2011
Expected Cost Savings On Track
ü Remain confident we will meet total projected cost saves of
$134 million
$134 million
ü Realized approximately $4 million in cost synergies from
acquisition date through the end of second quarter 2011
acquisition date through the end of second quarter 2011
ü Timeline for synergies remains on track
• Cost saves phased in (15% in 2011; 80% in 2012; 100% thereafter)
19
As of June 30, 2011
Potential Cross-Sell Opportunities
Potential Cross-Sell Opportunities
ü Hancock Insurance Agency /
Private Banking
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
cross sell
Personal & corporate trust
Mature sales process
ü Treasury Services / cash management
ü Merchant Services
ü Banking business owners
20
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
― 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
21
Conservative Credit Culture Will Continue
§ Hancock’s conservative credit culture was key during the most
recent credit cycle
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
review process similar to Hancock’s
§ Lenders and credit analysts trained
§ Credit review took a leading role
22
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
n Focused on shareholder value creation
10-Year Total Return (1)
10-Year Total Return (1)
Notes:
1. As of 6/30/2011
2. KRX index of 50 regional U.S. banks
3. BKX index of 24 large-cap U.S. banks
Large Cap
Peers (3)
Regional
Peers (2)
Peers (2)
S&P 500
Index
23
171%
38%
31%
(2%)
(50)
0
50
100
150
200
Questions?
Questions?
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
Appendix
Appendix
Non-GAAP Reconciliation
Non-GAAP Reconciliation
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: 228.868.4000 or 1.800.522.6542
HancockBank.com
28