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

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8-K - FORM 8-K - HANCOCK WHITNEY CORP	d573318d8k.htm

Exhibit 99.1

LOGO

For Immediate Release

July 25, 2013

For More Information

Trisha Voltz Carlson

SVP, Investor Relations Manager

504.299.5208

trisha.carlson@hancockbank.com

Hancock reports second quarter 2013 financial results

GULFPORT, Miss. (July 25, 2013) — Hancock Holding Company (Nasdaq: HBHC) today announced its financial results for the second quarter of 2013. Net income was $46.9 million, or $.55 per diluted common share, compared to $48.6 million, or $.56, in the first quarter of 2013. Net income was $39.3 million, or $.46 per diluted common share, in the second quarter of 2012, which included pre-tax merger-related costs of $11.9 million.

Highlights of the Company’s second quarter of 2013 results:

•

Approximately $245 million linked-quarter net loan growth, or 9% annualized, and $760 million, or 7%, year-over-year loan growth (each excluding the FDIC-covered portfolio).

•

Core net interest income (TE) and net interest margin (NIM) relatively stable, growth in fee income, led to improved core revenue.

•

Continued improvement in overall asset quality metrics.

•

Initiated 5% common stock buyback in May through an accelerated share repurchase (ASR) program, receiving 2.8 million shares to-date.

(The company defines its core results as reported results less the impact of net purchase accounting adjustments.)

“The second quarter’s performance reflected an improvement in our core results, a trend we expect to build on in the future,” said Hancock’s President and Chief Executive Officer Carl J. Chaney. “Coupled with the ongoing implementation of the expense and efficiency initiative announced last quarter, we believe our Company is becoming better positioned to operate in both today’s economic environment as well as an eventual sustained, positive turn in the overall economy.”

Return on average assets (ROA) was 0.99% for the second quarter of 2013, slightly down from 1.03% in the first quarter of 2013. ROA was 1.00% in the second quarter a year ago on an operating basis, which excludes tax-effected merger-related expenses in that period.

Total assets were $18.9 billion at June 30, 2013, a decrease of less than 1% from $19.1 billion at March 31, 2013.

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Hancock reports second quarter 2013 financial results

July 25, 2013

Loans

Total loans at June 30, 2013 were $11.7 billion, up $199 million from March 31, 2013. Excluding the FDIC-covered portfolio, which declined $46 million during the second quarter of 2013, total loans increased $245 million, or 2.2% linked-quarter. The largest component of net growth during the quarter was in the commercial and industrial (C&I) portfolio which was up $228 million linked-quarter. Residential mortgage loans increased approximately $30 million, while construction and land development (C&D) loans continued to decline during the quarter. New loan activity in all markets across the Company’s footprint contributed to the solid loan growth this quarter.

For the second quarter of 2013, average total loans were $11.6 billion, up $93 million from the first quarter of 2013.

Excluding the FDIC-covered portfolio, total loans were up $760 million, or 7%, from a year earlier.

Deposits

Total deposits at June 30, 2013 were $15.2 billion, down $97 million, or less than 1%, from March 31, 2013. Average deposits for the second quarter of 2013 were $15.2 billion, down $101 million, or less than 1%, from the first quarter of 2013.

Noninterest-bearing demand deposits (DDAs) totaled $5.3 billion at June 30, 2013, down $78 million, or 1%, compared to March 31, 2013. The decline mainly reflects the movement from DDAs to sweep time deposit products for a few commercial customers. DDAs comprised 35% of total period-end deposits at June 30, 2013.

Time deposits (CDs) totaled $2.4 billion at June 30, 2013, up $151 million, or 7%, from March 31, 2013. Excluding the impact from the $253 million increase in sweep time deposit product balances, CDs were down $102 million, or 5%, reflecting mainly the impact of the low rate environment for reinvestment opportunities on renewals.

Interest-bearing public fund deposits totaled $1.4 billion at June 30, 2013, down $118 million, or 8%, linked-quarter. As noted previously, public fund deposits typically reflect higher balances at year-end with subsequent reductions beginning in the first quarter and continuing into the second quarter.

Interest-bearing transaction and savings deposits totaled $6.0 billion at June 30, 2013, down $52 million, or less than 1%, compared to March 31, 2013.

Asset Quality

Non-performing assets (NPAs) totaled $216 million at June 30, 2013, down $13 million from $229 million at March 31, 2013. Non-performing assets as a percent of total loans, foreclosed and surplus real estate (ORE) and other foreclosed assets was 1.84% at June 30, 2013, compared to 1.98% at March 31, 2013. The decrease in overall NPAs during the second quarter reflects a net reduction of $7.4 million in ORE properties and a $5.4 million reduction in non-performing loans.

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Hancock reports second quarter 2013 financial results

July 25, 2013

Future levels of ORE may be volatile in the near term due to ongoing activity related to the covered portfolio and the anticipated closings of certain bank locations in connection with the efficiency initiative.

The Company’s total allowance for loan losses was $138.0 million at June 30, 2013, compared to $137.8 million at March 31, 2013. The ratio of the allowance to period-end loans was 1.18% at June 30, 2013, down slightly from 1.20% at March 31, 2013. The allowance maintained on the originated portion of the loan portfolio totaled $76.4 million, or 0.93% of related loans, at June 30, 2013, up from $75.5 million, or 1.02%, at March 31, 2013.

Net charge-offs from the non-covered loan portfolio were $7.0 million, or 0.24% of average total loans on an annualized basis in the second quarter of 2013 compared to $6.6 million, or 0.23% of average total loans in the first quarter of 2013.

During the second quarter of 2013, Hancock recorded a total provision for loan losses of $8.3 million, down from $9.6 million in the first quarter of 2013. The provision for non-covered loans was $7.9 million in the second quarter of 2013, compared to $3.0 million in the first quarter of 2013. The increase was related in part to the increased volume of new loans originated during the second quarter.

The Company recorded $1.4 million of impairment on certain pools of covered loans during the second quarter of 2013, with a related increase of $1.0 million in the Company’s FDIC loss share receivable. The net provision from the covered portfolio was $.4 million in the second quarter of 2013 compared to $6.6 million for the first quarter of 2013. As a reminder, the first quarter provision for covered loans included approximately $6.5 million of impairment related to changes in the estimated timing of cash flows which does not result in an offsetting impact on the loss share receivable.

Net Interest Income

Net interest income (TE) for the second quarter of 2013 was $171.8 million, down $4.9 million from the first quarter of 2013. Average earning assets were $16.5 billion in the second quarter of 2013, virtually unchanged from the first quarter of 2013.

Approximately $4.4 million of the decline was related to a lower level of total purchase-accounting loan accretion on acquired loans in the second quarter, mainly related to the volatility from excess cash recoveries. The slide presentation referenced below includes detailed information on expected loan accretion and excess cash recoveries. Approximately $7.5 million ($.06 per diluted common share) of excess cash recoveries were included in the first quarter’s results, while approximately $3.1 million ($.02 per diluted common share) was included in the second quarter’s results. Excess cash recoveries include cash collected on certain zero carrying value acquired loan pools.

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Hancock reports second quarter 2013 financial results

July 25, 2013

The net interest margin (TE) was 4.17% for the second quarter of 2013, down 15 basis points (bps) from 4.32% in the first quarter of 2013. The core margin of 3.38% (reported net interest income (TE) excluding total net purchase accounting adjustments, annualized, as a percent of average earning assets) compressed approximately 3 bps during the second quarter of 2013, mainly related to the continued decline in the core loan yield. The margin was favorably impacted from the investment of excess liquidity discussed last quarter and a 3 bps reduction in the total cost of funds.

The slide presentation referenced below includes additional information on historical and expected future levels of purchase accounting adjustments.

Noninterest Income

Noninterest income totaled $63.9 million for the second quarter of 2013, up $3.7 million, or 6%, from the first quarter of 2013.

Service charges on deposits totaled $19.9 million for the second quarter of 2013, up $.8 million, or 4%, from the first quarter of 2013. The linked-quarter increase partly reflects the impact of two additional business days in the second quarter.

Trust, investment and annuity fees, and insurance fees totaled $19.8 million, up $2.6 million, or 15%, from the first quarter of 2013. The linked-quarter increase reflects some seasonality in these lines of business, in addition to the impact of higher stock market values.

Bankcard fees and ATM fees totaled $11.4 million, up $.3 million, or 3%, from the first quarter of 2013, reflecting additional activity during the second quarter.

Fees from secondary mortgage operations totaled $4.1 million for the second quarter of 2013, down $.2 million, or 6%, linked-quarter.

Noninterest Expense & Taxes

Noninterest expense for the second quarter of 2013 totaled $162.3 million, up $2.6 million, or 2%, from the first quarter of 2013. The overall increase is mainly related to a $2.6 million increase in other real estate (ORE) expense. ORE expense, included in other operating expense, totaled $3.4 million in the second quarter of 2013, compared to $.7 million in the first quarter of 2013.

Total personnel expense, the largest component of the Company’s expense base, was $87.6 million in the second quarter of 2013, down slightly from $87.9 million in the first quarter of 2013.

Despite the increase in overall expenses, the Company remains on track to achieve its efficiency and expense reduction target for the first quarter of 2014. In May of 2013, the Company announced the planned closing of approximately 40 branch locations across its 5-state footprint as part of the expense reduction initiative. As discussed below, the Company announced earlier this week the sale of 10 of these 40 branch locations. A significant portion of the cost

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Hancock reports second quarter 2013 financial results

July 25, 2013

savings targeted for the first quarter of 2014 will be derived from these closures and sales. Currently the Company plans to complete the majority of branch closings on August 30, 2013, with the remaining branches scheduled to close or be sold by year-end. Management expects one-time costs associated with the branch closures and sales, to be booked in the third quarter of 2013. These costs are expected to be lower than the previous guidance of between $18 and $22 million. The branch sales, which are subject to regulatory approvals and certain closing conditions, will be reflected in Hancock’s fourth quarter 2013 financial results. The buyers expect to acquire approximately $54 million in loans and $60 million in deposits booked in the 10 retail branches.

The effective income tax rate for the second quarter of 2013 was 25%, unchanged from the first quarter of 2013. Management expects the effective tax rate to approximate 26-27% for 2013. 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 totaled $2.3 billion at June 30, 2013, down almost $132 million from March 31, 2013. The tangible common equity (TCE) ratio declined 62 bps to 8.52% at June 30, 2013. The linked-quarter decline mainly reflects the $115 million (63 bps) used in May of 2013 to execute an accelerated share repurchase (ASR) program in conjunction with the previously announced program to repurchase up to 5% of the Company’s outstanding common stock. Additionally, while the Company continued to add to its strong capital base through retained earnings, accumulated other comprehensive income (a component of equity) declined $47 million (26 bps) from March 31, 2013. The decline mainly reflects the impact of increased market rates on the valuation of the securities portfolio.

Management continues to review the strategic opportunities presented by Hancock’s strong capital position, including additional stock buybacks, organic growth, acquisitions or increased dividends. Additional capital ratios are included in the financial tables.

Near Term EPS Guidance

Management expects earnings to remain flat to slightly down from current levels for the remainder of 2013, as expected declines and volatility in accretion levels on the acquired portfolios continue to impact reported results.

Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 9:00 a.m. Central Time on Friday, July 26, 2013 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. A slide presentation related to second quarter results is 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 August 1, 2013 by dialing (855) 859-2056 or (404) 537-3406, passcode 14843195.

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Hancock reports second quarter 2013 financial results

July 25, 2013

About Hancock Holding Company

Hancock Holding Company, the parent company of Hancock Bank and Whitney Bank, operates across a Gulf south corridor comprising south Mississippi; southern and central Alabama; southern Louisiana; the northern, central, and Panhandle regions of Florida; and Houston, Texas. The Hancock Holding Company family of financial services companies also includes Hancock Investment Services, Inc.; Hancock Insurance Agency and Whitney Insurance Agency, Inc.; corporate trust offices in Gulfport and Jackson, Mississippi, New Orleans and Baton Rouge, Louisiana, and Orlando, Florida; and Harrison Finance Company. Additional information is 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 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, loan growth, deposit trends, credit quality trends, future sales of nonperforming assets, net interest margin trends, future expense levels and the ability to achieve reductions in non-interest expense or other cost savings, projected tax rates, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts such as accretion levels, the impact of the branch rationalization process, and the financial impact of regulatory requirements.

Hancock’s ability to accurately project results or predict the effects of future plans or strategies 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 outlined 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.

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Hancock Holding Company

Financial Highlights

(amounts in thousands, except per share data and FTE headcount)

(unaudited)


	Three Months Ended									Six Months Ended
	6/30/2013			3/31/2013			6/30/2012			6/30/2013			6/30/2012
Per Common Share Data
Earnings per share:
Basic	$	0.55		$	0.56		$	0.46		$	1.11		$	0.68
Diluted	$	0.55		$	0.56		$	0.46		$	1.11		$	0.67
Operating earnings per share: (a)
Basic	$	0.55		$	0.56		$	0.55		$	1.11		$	1.03
Diluted	$	0.55		$	0.56		$	0.55		$	1.11		$	1.02
Cash dividends per share	$	0.24		$	0.24		$	0.24		$	0.48		$	0.48
Book value per share (period-end)	$	28.57		$	29.18		$	28.30		$	28.57		$	28.30
Tangible book value per share (period-end)	$	18.83		$	19.67		$	18.46		$	18.83		$	18.46
Weighted average number of shares:
Basic		83,279			84,871			84,751			84,071			84,742
Diluted		83,357			84,972			85,500			84,153			85,467
Period-end number of shares		82,078			84,882			84,774			82,078			84,774
Market data:
High sales price	$	30.93		$	33.59		$	36.56		$	33.59		$	36.73
Low sales price	$	25.00		$	29.37		$	27.96		$	25.00		$	27.96
Period end closing price	$	30.07		$	30.92		$	30.44		$	30.07		$	30.44
Trading volume		38,599			29,469			39,310			68,068			71,733
Other Period-end Data
FTE headcount		4,160			4,197			4,456			4,160			4,456
Tangible common equity	$	1,545,122		$	1,669,435		$	1,565,029		$	1,545,122		$	1,565,029
Tier I capital	$	1,622,713		$	1,700,115		$	1,581,101		$	1,622,713		$	1,581,101
Goodwill	$	625,675		$	625,675		$	628,877		$	625,675		$	628,877
Amortizing intangibles	$	174,423		$	181,853		$	205,249		$	174,423		$	205,249
Performance Ratios
Return on average assets		0.99	%		1.03	%		0.83	%		1.01	%		0.61	%
Return on average assets (operating) (a)		0.99	%		1.03	%		1.00	%		1.01	%		0.92	%
Return on average common equity		7.82	%		8.05	%		6.62	%		7.93	%		4.88	%
Return on average common equity (operating) (a)		7.82	%		8.05	%		7.93	%		7.93	%		7.40	%
Return on average tangible common equity		11.74	%		12.04	%		10.24	%		11.89	%		7.60	%
Return on average tangible common equity (operating) (a)		11.74	%		12.04	%		12.26	%		11.89	%		11.52	%
Tangible common equity ratio		8.52	%		9.14	%		8.72	%		8.52	%		8.72	%
Earning asset yield (TE)		4.42	%		4.60	%		4.80	%		4.51	%		4.80	%
Total cost of funds		0.25	%		0.28	%		0.32	%		0.27	%		0.35	%
Net interest margin (TE)		4.17	%		4.32	%		4.48	%		4.24	%		4.45	%
Efficiency ratio (b)		65.68	%		64.17	%		65.67	%		64.92	%		66.73	%
Allowance for loan losses as a percent of period-end loans		1.18	%		1.20	%		1.27	%		1.18	%		1.27	%
Allowance for loan losses to non-performing loans + accruing loans 90 days past due		91.43	%		87.34	%		104.78	%		91.43	%		104.78	%
Average loan/deposit ratio		76.41	%		75.30	%		73.51	%		75.86	%		73.30	%
Noninterest income excluding securities transactions as a percent of total revenue (TE)		27.11	%		25.40	%		26.06	%		26.25	%		25.81	%

(a)	Excludes tax-effected merger related expenses and securities transactions. Management believes that this is a useful financial measure because it enables investors to assess ongoing operations.

(b)	Efficiency ratio is defined as noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles, securities transactions, and merger related expenses.

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Hancock Holding Company

Financial Highlights

(amounts in thousands)

(unaudited)


	Three Months Ended									Six Months Ended
	6/30/2013			3/31/2013			6/30/2012			6/30/2013			6/30/2012
Asset Quality Information
Non-accrual loans (c)	$	110,516		$	115,289		$	113,384		$	110,516		$	113,384
Restructured loans (d)		33,741			34,390			19,518			33,741			19,518

Total non-performing loans		144,257			149,679			132,902			144,257			132,902
ORE and foreclosed assets		72,235			79,627			138,118			72,235			138,118

Total non-performing assets	$	216,492		$	229,306		$	271,020		$	216,492		$	271,020

Non-performing assets as a percent of loans, ORE and foreclosed assets		1.84	%		1.98	%		2.42	%		1.84	%		2.42	%
Accruing loans 90 days past due (c)	$	6,647		$	8,076		$	1,443		$	6,647		$	1,443
Accruing loans 90 days past due as a percent of loans		0.06	%		0.07	%		0.01	%		0.06	%		0.01	%
Non-performing assets + accruing loans 90 days past due to loans, ORE and foreclosed assets		1.90	%		2.05	%		2.43	%		1.90	%		2.43	%
Net charge-offs - non-covered	$	7,032		$	6,633		$	10,211		$	13,665		$	17,265
Net charge-offs - covered		2,026			3,222			3,499			5,248			19,289
Net charge-offs - non-covered as a percent of average loans		0.24	%		0.23	%		0.37	%		0.24	%		0.31	%
Allowance for loan losses	$	137,969		$	137,777		$	140,768		$	137,969		$	140,768
Allowance for loan losses as a percent of period-end loans		1.18	%		1.20	%		1.27	%		1.18	%		1.27	%
Allowance for loan losses to non-performing loans + accruing loans
90 days past due		91.43	%		87.34	%		104.78	%		91.43	%		104.78	%
Provision for loan losses	$	8,257		$	9,578		$	8,025		$	17,835		$	18,040
Allowance for Loan Losses
Beginning Balance	$	137,777		$	136,171		$	142,337		$	136,171		$	124,881
Provision for loan losses before FDIC benefit - covered loans		1,355			8,484			5,146			9,839			37,025
Benefit attributable to FDIC loss share agreement		(993	)		(1,883	)		(4,116	)		(2,876	)		(34,401	)
Provision for loan losses - non-covered loans		7,895			2,977			6,995			10,872			15,416

Net provision for loan losses		8,257			9,578			8,025			17,835			18,040

Increase in FDIC loss share receivable		993			1,883			4,116			2,876			34,401
Charge-offs - non-covered		11,451			11,237			12,711			22,688			22,377
Recoveries - non-covered		(4,419	)		(4,604	)		(2,500	)		(9,023	)		(5,112	)
Net charge-offs - covered		2,026			3,222			3,499			5,248			19,289

Net charge-offs		9,058			9,855			13,710			18,913			36,554

Ending Balance	$	137,969		$	137,777		$	140,768		$	137,969		$	140,768

Net Charge-off Information
Net charge-offs - non-covered:
Commercial/real estate loans	$	3,834		$	4,304		$	5,627		$	8,138		$	9,906
Residential mortgage loans		702			(352	)		1,846			350			2,567
Consumer loans		2,496			2,681			2,738			5,177			4,792

Total net charge-offs - non-covered	$	7,032		$	6,633		$	10,211		$	13,665		$	17,265

Average loans:
Commercial/real estate loans	$	8,418,140		$	8,284,408		$	7,946,781		$	8,351,642		$	7,982,217
Residential mortgage loans		1,625,672			1,626,629			1,548,803			1,626,148			1,548,945
Consumer loans		1,579,397			1,618,891			1,644,532			1,599,036			1,635,334

Total average loans	$	11,623,209		$	11,529,928		$	11,140,116		$	11,576,826		$	11,166,496

Net charge-offs - non-covered to average loans:
Commercial/real estate loans		0.18	%		0.21	%		0.28	%		0.20	%		0.25	%
Residential mortgage loans		0.17	%		(0.09	)%		0.48	%		0.04	%		0.33	%
Consumer loans		0.63	%		0.67	%		0.67	%		0.65	%		0.59	%

Total net charge-offs - non-covered to average loans		0.24	%		0.23	%		0.37	%		0.24	%		0.31	%

(c)	Non-accrual loans and accruing loans past due 90 days or more do not include non-accrual restructured loans and acquired credit-impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.

(d)	Included in restructured loans are $22.2 million, $21.1 million, and $9.7 million in non-accrual loans at 6/30/13, 3/31/13, and 6/30/12, respectively. Total excludes acquired credit-impaired loans.

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Hancock Holding Company

Financial Highlights

(amounts in thousands)

(unaudited)


	Three Months Ended						Six Months Ended
	6/30/2013		3/31/2013		6/30/2012		6/30/2013		6/30/2012
Income Statement
Interest income	$	179,649	$	185,272	$	190,489	$	364,921	$	382,205
Interest income (TE)		182,292		187,998		193,323		370,290		387,988
Interest expense		10,470		11,257		13,030		21,727		28,458

Net interest income (TE)		171,822		176,741		180,293		348,563		359,530
Provision for loan losses		8,257		9,578		8,025		17,835		18,040
Noninterest income excluding securities transactions		63,897		60,187		63,552		124,084		125,046
Securities transactions gains/(losses)		—		—		—		—		12
Noninterest expense		162,250		159,602		179,972		321,852		385,435

Income before income taxes		62,569		65,022		53,014		127,591		75,330
Income tax expense		15,707		16,446		13,710		32,153		17,531
Net income	$	46,862	$	48,576	$	39,304	$	95,438	$	57,799

Merger-related expenses		—		—		11,913		—		45,827
Securities transactions gains/(losses)		—		—		—		—		12
Taxes on adjustments		—		—		4,170		—		16,035

Operating income (e)	$	46,862	$	48,576	$	47,047	$	95,438	$	87,579

Noninterest Income and Noninterest Expense
Service charges on deposit accounts	$	19,864	$	19,015	$	20,907	$	38,879	$	37,181
Trust fees		9,803		8,692		7,983		18,495		16,721
Bank card fees		7,798		7,483		8,075		15,281		16,539
Investment & annuity fees		5,192		4,577		4,607		9,769		9,022
ATM fees		3,601		3,575		4,844		7,176		9,177
Secondary mortgage market operations		4,139		4,383		3,015		8,522		7,017
Insurance fees		4,845		3,994		4,581		8,839		8,058
Other income		8,655		8,468		9,540		17,123		21,331

Noninterest income excluding securities transactions	$	63,897	$	60,187	$	63,552	$	124,084	$	125,046
Securities transactions gains/(losses)		—		—		—		—		12

Total noninterest income including securities transactions	$	63,897	$	60,187	$	63,552	$	124,084	$	125,058
Personnel expense	$	87,595	$	87,927	$	89,329	$	175,522	$	181,200
Occupancy expense (net)		12,404		12,326		13,603		24,730		28,005
Equipment expense		4,919		5,301		5,924		10,220		11,800
Other operating expense		49,901		46,493		51,281		96,394		102,377
Amortization of intangibles		7,431		7,555		7,922		14,986		16,226
Merger-related expenses		—		—		11,913		—		45,827

Total noninterest expense	$	162,250	$	159,602	$	179,972	$	321,852	$	385,435

(e)	Net income less tax-effected merger costs and securities gains/losses. Management believes that this is a useful financial measure because it enables investors to assess ongoing operations.

- 9 -

Hancock Holding Company

Financial Highlights

(amounts in thousands)

(unaudited)


	Three Months Ended									Six Months Ended
	6/30/2013			3/31/2013			6/30/2012			6/30/2013			6/30/2012
Period-end Balance Sheet
Commercial non-real estate loans	$	4,653,342		$	4,425,621		$	3,890,489		$	4,653,342		$	3,890,489
Construction and land development loans		966,499			992,820			1,167,496			966,499			1,167,496
Commercial real estate loans		2,872,254			2,873,403			2,830,530			2,872,254			2,830,530
Residential mortgage loans		1,616,093			1,587,519			1,519,711			1,616,093			1,519,711
Consumer loans		1,573,309			1,603,399			1,669,920			1,573,309			1,669,920

Total loans		11,681,497			11,482,762			11,078,146			11,681,497			11,078,146

Loans held for sale		20,233			34,813			44,918			20,233			44,918
Securities		4,303,918			4,662,279			4,320,457			4,303,918			4,320,457
Short-term investments		442,917			475,677			650,470			442,917			650,470

Earning assets		16,448,565			16,655,531			16,093,991			16,448,565			16,093,991

Allowance for loan losses		(137,969	)		(137,777	)		(140,768	)		(137,969	)		(140,768	)
Other assets		2,623,705			2,546,369			2,825,484			2,623,705			2,825,484

Total assets	$	18,934,301		$	19,064,123		$	18,778,707		$	18,934,301		$	18,778,707

Noninterest bearing deposits	$	5,340,177		$	5,418,463		$	5,040,484		$	5,340,177		$	5,040,484
Interest bearing transaction and savings deposits		5,965,372			6,017,735			5,876,843			5,965,372			5,876,843
Interest bearing public fund deposits		1,410,866			1,528,790			1,479,378			1,410,866			1,479,378
Time deposits		2,439,523			2,288,363			2,534,115			2,439,523			2,534,115

Total interest bearing deposits		9,815,761			9,834,888			9,890,336			9,815,761			9,890,336

Total deposits		15,155,938			15,253,351			14,930,820			15,155,938			14,930,820
Other borrowed funds		1,213,229			1,116,457			1,193,021			1,213,229			1,193,021
Other liabilities		219,794			217,215			255,504			219,794			255,504
Common shareholders’ equity		2,345,340			2,477,100			2,399,362			2,345,340			2,399,362

Total liabilities & common equity	$	18,934,301		$	19,064,123		$	18,778,707		$	18,934,301		$	18,778,707


Capital Ratios
Common shareholders’ equity	$	2,345,340		$	2,477,100		$	2,399,362		$	2,345,340		$	2,399,362
Tier 1 capital (f)		1,622,713			1,700,115			1,581,101			1,622,713			1,581,101
Tangible common equity ratio		8.52	%		9.14	%		8.72	%		8.52	%		8.72	%
Common equity (period-end) as a percent of total assets (period-end)		12.39	%		12.99	%		12.78	%		12.39	%		12.78	%
Leverage (Tier 1) ratio (f)		8.91	%		9.28	%		8.62	%		8.91	%		8.62	%
Tier 1 risk-based capital ratio (f)		12.15	%		12.85	%		12.20	%		12.15	%		12.20	%
Total risk-based capital ratio (f)		13.63	%		14.49	%		14.23	%		13.63	%		14.23	%

(f)	estimated for most recent period-end

- 10 -

Hancock Holding Company

Financial Highlights

(amounts in thousands)

(unaudited)


	Three Months Ended									Six Months Ended
	6/30/2013			3/31/2013			6/30/2012			6/30/2013			6/30/2012
Average Balance Sheet
Commercial non-real estate loans	$	4,539,259		$	4,413,558		$	3,872,026		$	4,476,754		$	3,826,584
Construction and land development loans		984,449			975,301			1,235,612			979,900			1,251,362
Commercial real estate loans		2,894,432			2,895,549			2,839,143			2,894,988			2,904,271
Residential mortgage loans		1,625,672			1,626,629			1,548,803			1,626,148			1,548,945
Consumer loans		1,579,397			1,618,891			1,644,532			1,599,036			1,635,334

Total loans (g)		11,623,209			11,529,928			11,140,116			11,576,826			11,166,496

Securities (h)		4,423,441			3,929,255			4,292,686			4,177,713			4,243,585
Short-term investments		453,565			1,058,519			733,489			754,371			793,166

Earning assets		16,500,215			16,517,702			16,166,291			16,508,910			16,203,247

Allowance for loan losses		(137,815	)		(137,110	)		(142,991	)		(137,465	)		(134,031	)
Other assets		2,660,432			2,772,059			2,964,097			2,715,938			3,021,242

Total assets	$	19,022,832		$	19,152,651		$	18,987,397		$	19,087,383		$	19,090,458

Noninterest bearing deposits	$	5,346,916		$	5,314,648		$	5,149,898		$	5,330,871		$	5,254,701
Interest bearing transaction and savings deposits		5,965,769			5,982,345			5,881,673			5,974,011			5,753,817
Interest bearing public fund deposits		1,483,267			1,608,925			1,517,743			1,545,749			1,524,426
Time deposits		2,415,411			2,406,772			2,604,387			2,411,115			2,700,161

Total interest bearing deposits		9,864,447			9,998,042			10,003,803			9,930,875			9,978,404

Total deposits		15,211,363			15,312,690			15,153,701			15,261,746			15,233,105
Other borrowed funds		1,183,744			1,160,110			1,212,692			1,171,993			1,225,271
Other liabilities		222,656			231,841			233,539			227,224			250,897
Common shareholders’ equity		2,405,069			2,448,010			2,387,465			2,426,420			2,381,185

Total liabilities & common equity	$	19,022,832		$	19,152,651		$	18,987,397		$	19,087,383		$	19,090,458

(g)	Includes loans held for sale

(h)	Average securities does not include unrealized holding gains/losses on available for sale securities.

- 11 -

Hancock Holding Company

Financial Highlights

(amounts in thousands)

(unaudited)


Supplemental Asset Quality Information (excluding covered assets and acquired loans)⁽ⁱ⁾	6/30/2013			3/31/2013			6/30/2012
Non-accrual loans (j) (k)	$	81,613		$	82,194		$	100,067
Restructured loans (l)		28,176			28,689			19,518

Total non-performing loans		109,789			110,883			119,585
ORE and foreclosed assets (m)		49,691			55,545			93,339

Total non-performing assets	$	159,480		$	166,428		$	212,924

Non-performing assets as a percent of loans, ORE and foreclosed assets		1.92	%		2.24	%		3.61	%
Accruing loans 90 days past due	$	5,270		$	6,113		$	1,443
Accruing loans 90 days past due as a percent of loans		0.06	%		0.08	%		0.02	%
Non-performing assets + accruing loans 90 days past due to loans, ORE and foreclosed assets		1.98	%		2.32	%		3.63	%
Allowance for loan losses (n) (o)	$	76,399		$	75,466		$	81,376
Allowance for loan losses as a percent of period-end loans		0.93	%		1.02	%		1.40	%
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due		66.40	%		64.50	%		67.24	%

(i)

Covered and acquired credit impaired loans are considered performing due to the application of the accretion method under acquisition accounting. Acquired loans are recorded at fair value with no allowance brought forward in accordance with acquisition accounting. Certain acquired loans and foreclosed assets are also covered under FDIC loss sharing agreements, which provide considerable protection against credit risk. Due to the protection of loss sharing agreements and impact of acquisition accounting, management has excluded acquired loans and covered assets from this table to provide for improved comparability to prior periods and better perspective into asset quality trends.

(j)	Excludes acquired covered loans not accounted for under the accretion method of $4,221, $4,221, and $6,174.

(k)	Excludes non-covered acquired performing loans at fair value of $24,682, $28,874, and $7,143.

(l)	Excludes non-covered acquired performing loans at fair value of $5,565, $5,701, and $0.

(m)	Excludes covered foreclosed assets of $22,544, $24,082, and $44,779.

(n)	Excludes allowance for loan losses recorded on covered acquired loans of $61,200, $61,868, and $59,392.

(o)	Excludes allowance for loan losses recorded on non-covered acquired-performing loans of $370, $443 and $0.


	3/31/2013
	Originated Loans		Acquired Loans (p)			Covered Loans (q)			Total
Commercial non-real estate loans	$	2,901,190	$	1,500,137		$	24,294		$	4,425,621
Construction and land development loans		697,989		269,727			25,104			992,820
Commercial real estate loans		1,562,383		1,226,854			84,166			2,873,403
Residential mortgage loans		886,232		449,500			251,787			1,587,519
Consumer loans		1,331,142		180,632			91,625			1,603,399

Total loans	$	7,378,936	$	3,626,850		$	476,976		$	11,482,762

Change in loan balance from previous quarter	$	271,715	($	327,908	)	($	38,847	)	($	95,040	)


	6/30/2013
	Originated Loans		Acquired Loans (p)			Covered Loans (q)			Total
Commercial non-real estate loans	$	3,564,008	$	1,062,916		$	26,418		$	4,653,342
Construction and land development loans		722,649		217,611			26,239			966,499
Commercial real estate loans		1,638,409		1,161,500			72,345			2,872,254
Residential mortgage loans		988,595		392,282			235,216			1,616,093
Consumer loans		1,340,094		162,722			70,493			1,573,309

Total loans	$	8,253,755	$	2,997,031		$	430,711		$	11,681,497

Change in loan balance from previous quarter	$	874,819	($	629,819	)	($	46,265	)	$	198,735

(p)	Loans which have been acquired and no allowance brought forward in accordance with acquisition accounting.

(q)	Loans which are covered by loss sharing agreements with the FDIC providing considerable protection against credit risk.

- 12 -

Hancock Holding Company

Average Balance and Net Interest Margin Summary

(amounts in thousands)

(unaudited)


	Three Months Ended
	6/30/2013							3/31/2013							6/30/2012
	Interest		Volume		Rate			Interest		Volume		Rate			Interest		Volume		Rate
Average Earning Assets
Commercial & real estate loans (TE)	$	103,344	$	8,418,140		4.92	%	$	113,296	$	8,284,408		5.54	%	$	108,777	$	7,946,781		5.50	%
Residential mortgage loans		27,540		1,625,672		6.78	%		25,680		1,626,629		6.31	%		28,709		1,548,803		7.41	%
Consumer loans		26,534		1,579,397		6.74	%		26,501		1,618,891		6.64	%		28,372		1,644,532		6.92	%
Loan fees & late charges		1,236		—		0.00	%		568		—		0.00	%		1,548		—		0.00	%

Total loans (TE)		158,654		11,623,209		5.47	%		166,045		11,529,928		5.83	%		167,406		11,140,116		6.04	%
US Treasury and government agency securities		1		150		2.67	%		17		5,579		1.24	%		738		142,149		2.09	%
CMOs		7,454		1,589,017		1.88	%		7,091		1,534,840		1.85	%		7,983		1,578,438		2.02	%
Mortgage backed securities		13,217		2,593,270		2.04	%		11,605		2,163,544		2.15	%		13,921		2,296,126		2.43	%
Municipals (TE)		2,630		232,987		4.51	%		2,554		216,974		4.71	%		2,741		266,661		4.11	%
Other securities		56		8,017		2.79	%		41		8,318		1.96	%		65		9,312		2.79	%

Total securities (TE) (r)		23,358		4,423,441		2.11	%		21,308		3,929,255		2.17	%		25,448		4,292,686		2.37	%
Total short-term investments		280		453,565		0.25	%		645		1,058,519		0.25	%		469		733,489		0.26	%
Average earning assets yield (TE)	$	182,292	$	16,500,215		4.42	%	$	187,998	$	16,517,702		4.60	%	$	193,323	$	16,166,291		4.80	%
Interest-bearing Liabilities
Interest-bearing transaction and savings deposits	$	1,542	$	5,965,769		0.10	%	$	1,659	$	5,982,345		0.11	%	$	1,764	$	5,881,673		0.12	%
Time deposits		3,795		2,415,411		0.63	%		4,086		2,406,772		0.69	%		5,018		2,604,387		0.77	%
Public funds		852		1,483,267		0.23	%		1,000		1,608,925		0.25	%		1,090		1,517,743		0.29	%

Total interest bearing deposits		6,189		9,864,447		0.25	%		6,745		9,998,042		0.27	%		7,872		10,003,803		0.32	%
Total borrowings		4,281		1,183,744		1.45	%		4,512		1,160,110		1.58	%		5,158		1,212,692		1.71	%
Total interest bearing liabilities cost	$	10,470	$	11,048,191		0.38	%	$	11,257	$	11,158,152		0.41	%	$	13,030	$	11,216,495		0.47	%
Net interest-free funding sources				5,452,024							5,359,550							4,949,796
Total Cost of Funds	$	10,470	$	16,500,215		0.25	%	$	11,257	$	16,517,702		0.28	%	$	13,030	$	16,166,291		0.32	%
Net Interest Spread (TE)	$	171,822				4.04	%	$	176,741				4.19	%	$	180,293				4.33	%
Net Interest Margin (TE)	$	171,822	$	16,500,215		4.17	%	$	176,741	$	16,517,702		4.32	%	$	180,293	$	16,166,291		4.48	%

(r)	Average securities does not include unrealized holding gains/losses on available for sale securities.

- 13 -

Hancock Holding Company

Average Balance and Net Interest Margin Summary

(amounts in thousands)

(unaudited)


	Six Months Ended
	6/30/2013							6/30/2012
	Interest		Volume		Rate			Interest		Volume		Rate
Average Earning Assets
Commercial & real estate loans (TE)	$	216,640	$	8,351,642		5.23	%	$	221,285	$	7,982,217		5.57	%
Residential mortgage loans		53,220		1,626,148		6.55	%		55,132		1,548,945		7.12	%
Consumer loans		53,035		1,599,036		6.69	%		56,934		1,635,334		6.98	%
Loan fees & late charges		1,804		—		0.00	%		2,347		—		0.00	%

Total loans (TE)		324,699		11,576,826		5.65	%		335,698		11,166,496		6.04	%
US Treasury and government agency securities		18		2,849		1.27	%		2,001		180,793		2.23	%
CMOs		14,545		1,562,078		1.86	%		14,766		1,469,785		2.01	%
Mortgage backed securities		24,822		2,379,595		2.09	%		28,327		2,308,915		2.45	%
Municipals (TE)		5,184		225,025		4.61	%		6,009		275,387		4.36	%
Other securities		97		8,166		2.37	%		191		8,705		4.38	%

Total securities (TE) (s)		44,666		4,177,713		2.14	%		51,294		4,243,585		2.42	%
Total short-term investments		925		754,371		0.25	%		996		793,166		0.25	%
Average earning assets yield (TE)	$	370,290	$	16,508,910		4.51	%	$	387,988	$	16,203,247		4.80	%
Interest-Bearing Liabilities
Interest-bearing transaction deposits	$	3,201	$	5,974,011		0.11	%	$	3,946	$	5,753,817		0.14	%
Time deposits		7,881		2,411,115		0.66	%		11,906		2,700,161		0.88	%
Public funds		1,852		1,545,749		0.24	%		2,283		1,524,426		0.30	%

Total interest bearing deposits		12,934		9,930,875		0.26	%		18,135		9,978,404		0.36	%
Total borrowings		8,793		1,171,993		1.51	%		10,323		1,225,271		1.69	%
Total interest bearing liabilities cost	$	21,727	$	11,102,868		0.39	%	$	28,458	$	11,203,675		0.51	%
Net interest-free funding sources				5,406,042							4,999,572
Total Cost of Funds	$	21,727	$	16,508,910		0.27	%	$	28,458	$	16,203,247		0.35	%
Net Interest Spread (TE)	$	348,563				4.12	%	$	359,530				4.30	%
Net Interest Margin (TE)	$	348,563	$	16,508,910		4.24	%	$	359,530	$	16,203,247		4.45	%

(s)	Average securities does not include unrealized holding gains/losses on available for sale securities.

- 14 -

Second Quarter 2013

Financial Results

July 25, 2013

Second Quarter 2013

Financial Results

July 25, 2013

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 or our potential 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, loan growth, deposit trends, credit quality

trends, future sales of nonperforming assets, net interest margin trends, future expense levels and the

ability to achieve reductions in non-interest expense or other cost savings, projected tax rates, future

profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts such as

accretion levels, the impact of the branch rationalization process, and the financial impact of regulatory

requirements. 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 or implied by any forward-looking statements are based on

reasonable

assumptions,

but

actual

results

and

performance

could

differ

materially

from

those

set

forth

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, 2012 and most recent form 10-Q.

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.

•

Net income $47 million or

$.55 per diluted common share

•

ROA 0.99%

•

ROTCE 11.74%

•

Net loan growth (excluding covered loans),

up 9% linked-quarter annualized

•

Core net interest income (TE) and

NIM remained relatively stable

•

Growth in fee income

•

Improved core revenue

•

Improved asset quality metrics

•

Initiated 5% common stock

buyback through an accelerated

share repurchase (ASR)

Second Quarter Highlights

* Core is defined as reported results less purchase accounting adjustments. See table on slide 11.

** Noninterest

expense

percent

total

revenue

(TE)

before

amortization

purchased

intangibles,

securities

transactions

and

merger

expenses.

($s in millions; except per share data)

2Q13

1Q13

change

Net Income

$46.9

$48.6

-4%

Earnings Per Share (diluted)

$.55

$.56

-2%

Return on Assets

0.99%

1.03%

-4bps

Return on Tangible Common Equity

11.74%

12.04%

-30bps

Net Interest Margin

4.17%

4.32%

-15bps

Net Interest Margin (core)*

3.38%

3.41%

-3bps

Total Revenue (TE) (core)*

$203.0

$199.8

+2%

Net Charge-offs non-covered

0.24%

0.23%

+1bp

Tangible Common Equity

8.52%

9.14%

-62bps

Efficiency Ratio**

65.68%

64.17%

+151bps

Growth Continues In The

Commercial (C&I) Portfolio

•

Total loans $11.7 Billion

An increase of almost $200 million, or 1.7% linked-quarter

An increase of over $600 million, or 5%, from a year ago

•

Excluding the FDIC covered loans, total loans were up

$245 million, or 2.2%, linked-quarter and $760 million, or

7%, from a year earlier

•

Increase mainly related to the commercial and industrial

(C&I) portfolio, up $228 million linked-quarter

•

Moved over $600 million, or 50%, of non-covered

problem loans out of the company over the past 2 years

(see slide 7)

•

New loan activity in all markets across the footprint

contributed to the solid loan growth this quarter

Period-end balances. As of June 30, 2013

Whitney Portfolio Continues

Solid Performance

•

Loan mark on the acquired-performing portfolio accreted into earnings over the life of the

portfolio

•

Credit-impaired 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

As of June 30, 2013

$s in millions

Credit-

Impaired

Performing

Total

Whitney loan mark at acquisition

(as adjusted in 4Q11)

$284

$187

$471

Acquired portfolio loan balances at acquisition

$818

$6,101

$6,919

Discount at acquisition

34.7%

3.1%

6.8%

Remaining Whitney loan mark at 6/30/13

$170

$53

$223

Remaining acquired portfolio loan balances at

6/30/13

$265

$2,958

$3,223

Acquired loan charge-offs from acquisition thru

6/30/13

$27

$33

Discount at 6/30/13

64.1%

1.8%

6.9%

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 totaled $152 million at June 30, 2013

Balance reflects the total amount expected to be collected from the FDIC

As of June 30, 2013

$s in millions

Credit Impaired

Peoples First loan mark at acquisition (12/2009)

$509

Charge-offs from acquisition thru 6/30/13

$397

Accretion since acquisition date

$75

Remaining loan mark at 6/30/13

$79

Impairment reserve at 6/30/13

$61

Remaining acquired portfolio loan balances at 6/30/13

$510

Discount & allowance at 6/30/13

27.5%

•

Nonperforming assets totaled $216 million, a

decrease of $13 million linked-quarter

Nonperforming loans down $5.4 million

ORE and foreclosed assets down $7.4 million

•

Provision for loan losses was $8.3 million, compared

to $9.6 million in 1Q13

2Q13 includes $7.9 million for the non-covered loan

portfolio, compared to $3.0 million in 1Q13

2Q13 includes $0.4 million impact from FDIC-covered loan

portfolio, compared to $6.6 million in 1Q13

Linked-quarter increase in non-covered provision related to

the volume of newly originated loans in the second quarter

•

Non-covered net charge-offs totaled $7.0 million, or

0.24%, compared to $6.6 million or 0.23% in 1Q13

•

Allowance for loan losses/loans 1.18%

Excluding the impact of the Whitney acquired loans and FDIC

covered loans, allowance for loan losses was 0.93%

Improved Asset Quality Metrics

As of June 30, 2013

Securities Portfolio Funded Loan

Growth in Second Quarter

Securities Portfolio Funded Loan

Growth in Second Quarter

•

Portfolio totaled $4.3 billion at June 30,

2013, down $358 million linked-quarter

•

Yield 2.11% for 2Q13

•

Average maturity 3.35 years

•

Decline during 2Q13 funded loan growth

and deposit runoff

Better earning asset mix

•

Low risk, government guaranteed

•

Mainly mortgage-backed securities and

CMOs

•

60% AFS, 40% HTM

•

Unrealized loss (net) $24.8 million on AFS

•

Duration 3.87, up .80 linked-quarter

Extends to 4.3 in +100bps shift in the yield curve

Extends to 4.6 in +200bps shift in the yield curve

Period-end balances. As of June 30, 2013

Strong Core Deposit

Funding

•

Total deposits $15.2 billion, down

approximately $100 million, or less than

1%, linked-quarter

•

Overall decrease mainly related to

seasonal trends in public fund deposits

•

Funding mix remained strong

Noninterest-bearing demand deposits (DDA)

comprised 35% of total period-end deposits

No and low cost deposits comprised 75% of total

period-end deposits

Cost of funds declined 3bps to 25bps

Period-end balances. As of June 30, 2013

Net Interest Margin Impacted By

Earning Asset Repricing, Accretion

•

Reported net interest margin (NIM) 4.17%, down 15 bps linked-quarter

Net

purchase

accounting

adjustments

impact

reported

net

interest

income

and

NIM

Approximately 11 bps of reported NIM compression due to lower linked-quarter

impact from excess cash recoveries

•

Core NIM compressed 3 bps

Repricing of earning assets led to core NIM compression

6.04%

5.95%

5.83%

5.47%

4.86%

4.65%

4.55%

4.40%

4.23%

2.37%

2.30%

2.21%

2.17%

2.11%

0.32%

0.30%

0.28%

0.25%

Loan

Yield

reported

Loan

Yield

core*

Securities

Yield

reported

Cost

Funds

reported

2Q12

3Q12

4Q12

1Q13

2Q13

2Q12

3Q12

4Q12

1Q13

2Q13

NIM -

reported

NIM -

core

Core NIM = reported net interest income (TE) excluding total net

purchase accounting adjustments, annualized, as a percent of

average earning assets. (See slide 11)

As of June 30, 2013

3.80%

3.75%

3.61%

3.41%

3.38%

4.48%

4.54%

4.48%

4.32%

4.17%

Purchase Accounting Adjustments

Core NII & NIM Reconciliation

($s in millions)

2Q13

1Q13

4Q12

3Q12

2Q12

Net

Interest

Income

(TE)

–

reported

(NII)

$171.8

$176.7

$182.8

$180.1

$180.3

Whitney expected loan accretion (performing)

12.8

13.7

17.6

17.4

14.3

Whitney expected loan accretion (credit impaired)

15.9

14.6

11.5

7.9

7.3

Peoples First expected loan accretion

4.1

4.5

7.4

11.7

11.2

Excess cash recoveries*

3.1

7.5

4.0

---

Total Loan Accretion

$35.9

$40.3

$40.5

$37.0

$32.8

Whitney premium bond amortization

(3.4)

(3.5)

(5.4)

(5.8)

(6.3)

Whitney and Peoples First CD accretion

Total Net Purchase Accounting

Adjustments (PAAs) impacting NII

$32.7

$37.1

$35.5

$31.5

$27.4

Net

Interest

Income

(TE)

–

core

(Reported NII less net PAAs)

$139.0

$139.7

$147.3

$148.6

$152.9

Average Earning Assets

$16,500

$16,518

$16,246

$15,830

$16,166

Net

Interest

Margin

–

reported

4.17%

4.32%

4.48%

4.54%

4.48%

Net Purchase Accounting Adjustments (%)

.79%

.91%

.87%

.79%

.68%

Net

Interest

Margin

core

3.38%

3.41%

3.61%

3.75%

3.80%

* Excess cash recoveries include cash collected on certain zero carrying value acquired loan pools.

Efficiency Improvements Will Offset Loss

of Purchase Accounting Adjustments

•

Net

purchase

accounting

adjustments

will

‘sizeable’

part

earnings

for

the

few

years

•

Revenue includes loan accretion, securities amortization, CD accretion

•

Amortization of intangibles mainly related to the Whitney acquisition

$s in millions

Impact of Purchase Accounting Adjustments and Efficiency Initiative 2012-2015

(2013-2015 projections will be updated quarterly; subject to volatility)

Revenue impact

Amortization of intangibles

Pre-tax

impact

PAA

Pre-tax

impact

PAA

Efficiency initiative pre-tax impact

Linked-Quarter Noninterest Income Growth

Reflects Increased Business, Seasonality

•

Noninterest income totaled $64 million, up $3.7

million linked-quarter

•

Service charges on deposits totaled $19.9 million,

up $0.8 million from 1Q13

The linked-quarter increase partly reflects the impact of

two additional business days in the second quarter

•

Fees from secondary mortgage operations totaled

$4.1 million, down $0.2 million linked-quarter

•

Linked-quarter changes in trust, insurance, and

investment and annuity fees reflect some

seasonality in these lines of business and impact

of changes in stock market values

As of June 30, 2013

Increase in Noninterest

Expense Related to ORE

•

Noninterest expense totaled $162 million, up

$2.6 million, or 2%, from 1Q13

Amortization of intangibles totaled $7.4 million

Increase mainly related to other real estate (ORE)

expense

As of June 30, 2013

•

Personnel expense, the largest component of

total noninterest expense, totaled $87.6 million,

a decrease of $0.3 million linked-quarter

•

ORE expense totaled $3.4 million in 2Q13, up

from $0.7 million in 1Q13

•

Other operating expense (excluding ORE

expense) totaled $46.5 million, up $0.8 million

from 1Q13

Efficiency & Process Improvement

Initiative On Track

$s in millions

1Q13 noninterest

expense

$160

Annualized 1Q13

noninterest expense

$640

1Q14 noninterest

expense projection

$153

4Q14 noninterest

expense projection

$147

•

As part of the Company’s updated long-term Strategic Plan,

announced an efficiency and process improvement initiative

•

Most effective way of operating the consolidated organization

Short-term efficiency improvements

Long-term process improvement

•

Committed to reducing non-interest expense in future years by

$50 million compared to annualized 2013 expense

•

Designed to reduce overall annual expense levels over the

next 7 quarters

50% attainment by 1Q14

100% attainment by 4Q14

•

Will include reviews of front and back office areas as well as branch

network and current business models

•

Longer-term sustainable efficiency ratio target of 57%-59%

set for 2016

•

Expect to incur one-time costs in implementing the initiative

70%

65%

60%

55%

50%

Midpoint Long-Term Efficiency Ratio Target 57% -

59%

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

Efficiency Ratio

The

efficiency

ratio

defined

noninterest

expense

percent

total

revenue

(TE)

before

amortization

purchased

intangibles, sub debt redemption costs, securities transactions and merger expenses.

•

Reviewed each market for Business and/or Retail

line of business focus

•

Expect to close or sell approximately 40 branches

across the 5-state footprint

•

Expect one-time costs will be lower than previous

guidance and will be booked in 3Q13

1Q14 Expense Target Mainly Achieved Through

Previously Announced Branch Closures

Region

# of

Branches

# of

Branches

Closing

# of

Branches

Sold

1. Houston

2. SW Louisiana

3. Greater Baton

Rouge

4. Greater New

Orleans/Houma/

Thibodaux

5. South

Mississippi

6. AL/West FL

(panhandle)

7. East Central

Florida

* Information regarding branch sales included in press release issued on July 22, 2013

Whitney Bank

Hancock Bank

Majority will close on August 30, 2013

10 are expected to be sold by year-end 2013*

Remainder to close by year-end 2013

•

TCE ratio 8.52% at June 30, 2013

•

Announced stock buyback of up to 5% of

outstanding common stock

•

Other comprehensive income (OCI)

decreased $47 million, or 26 bps, in 2Q13

•

Continue reviewing opportunities to deploy

excess capital in the best interest of the

Company and its shareholders

•

Projected capital levels exceed Basel III

fully implemented, required guidelines

Solid Capital Levels

As of June 30, 2013

Executed an accelerated share repurchase on May 9, 2013

Total transaction amount of $115 million

Received approximately 2.8 million shares

Impacted TCE ratio by 63 bps

Based on current stock prices, the remaining shares of

approximately 1 million will be received no later than 2Q14

10.00%

9.00%

8.00%

7.00%

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

TCE

Minimum Target

Tangible Common Equity (TCE) Ratio

Appendix

Non-GAAP

Reconciliation

Non-GAAP

Reconciliation

(a) Net income less tax-effected merger costs, and securities gains/losses. Management believes that this is a useful financial measure because it enables investors to assess ongoing operations.

Hancock Holding Company

Financial Highlights

(amounts in thousands)

(unaudited)

6/30/2013

3/31/2013

6/30/2012

6/30/2013

6/30/2012

Income Statement

Interest income

$179,649

$185,272

$190,489

$364,921

$382,205

Interest income (TE)

182,292

187,998

193,323

370,290

387,988

Interest expense

10,470

11,257

13,030

21,727

28,458

Net interest income (TE)

171,822

176,741

180,293

348,563

359,530

Provision for loan losses

8,257

9,578

8,025

17,835

18,040

Noninterest income excluding

securities transactions

63,897

60,187

63,552

124,084

125,046

Securities transactions gains/(losses)

Noninterest expense

162,250

159,602

179,972

321,852

385,435

Income before income taxes

62,569

65,022

53,014

127,591

75,330

Income tax expense

15,707

16,446

13,710

32,153

17,531

Net income

$46,862

$48,576

$39,304

$95,438

$57,799

Merger-related expenses

11,913

45,827

Securities transactions gains/(losses)

Taxes on adjustments

4,170

16,035

Operating income (a)

$46,862

$48,576

$47,047

$95,438

$87,579

Three Months Ended

Six Months Ended

Second Quarter 2013

Financial Results

July 25, 2013

Second Quarter 2013

Financial Results

July 25, 2013

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HANCOCK WHITNEY CORP Reports