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

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8-K - 8-K - HANCOCK WHITNEY CORP	d914747d8k.htm

Exhibit 99.1

LOGO

For Immediate Release

April 23, 2015

For More Information

Trisha Voltz Carlson

SVP, Investor Relations Manager

504.299.5208

trisha.carlson@hancockbank.com

Hancock reports first quarter 2015 financial results

Operating results stable; impacted by seasonality and energy cycle

GULFPORT, Miss. (April 23, 2015) — Hancock Holding Company (Nasdaq: HBHC) today announced its financial results for the first quarter of 2015. Operating income for the first quarter of 2015 was $44.7 million, or $.55 per diluted common share, compared to $46.4 million, or $.56, in the fourth quarter of 2014. Operating income was $49.1 million, or $.58, in the first quarter of 2014. We define our operating income as net income excluding tax-effected securities transactions gains or losses and nonoperating expense items. Nonoperating expenses totaled $7.3 million and $9.7 million (pre-tax), in the first quarter of 2015 and fourth quarter of 2014, respectively. There were no adjustments between operating income and net income for the first quarter 2014. Management believes that operating income is one useful measure of our financial performance that helps investors compare the company’s fundamental operational performance from period to period. The financial tables include a reconciliation of net income to operating income.

Net income for the first quarter of 2015 was $40.2 million, or $.49 per diluted common share, compared to $40.1 million, or $.48 and $49.1 million, or $.58, in the fourth and first quarters of 2014 respectively.

Over the past several quarters we have disclosed our focus on strategic initiatives that are designed to replace declining levels of purchase accounting income from acquisitions with improvement in core income, which the company defines as operating income excluding tax-effected purchase accounting adjustments. Over time, this strategic focus should improve the company’s core income. Management believes that consistent reporting of core income helps investors understand the success management has had in executing its strategic initiatives. Our core income for the first quarter of 2015 was $39.6 million or $.49 per diluted common share, compared to $41.5 million or $.50 in the fourth quarter of 2014 and $37.7 million, or $.45, in the first quarter of 2014. The financial tables include a reconciliation of net income to core income.

Based on current projections for net purchase accounting adjustments, management expects core and operating results to be the same (or not significantly different) beginning in the second quarter of 2015, with net, operating and core results to be essentially the same in the second half of 2015.

Hancock reports first quarter 2015 financial results

April 23, 2015

“Our first quarter’s results were impacted by both typical seasonality and the current energy cycle,” said Hancock’s President and Chief Executive Officer John M. Hairston, “however, we reported solid results and positioned our company for future opportunities. During the quarter we completed our previously announced common stock buyback and issued $150 million of holding company subordinated debt. Our efforts to grow revenue continued, and while the current economic impact of the energy cycle in a few of our markets may delay the timing of achieving some of our consolidated goals, we have not lost sight of those targets and are focused on growing our company for the long term.”

Highlights of the company’s first quarter of 2015 results:

•

Stable operating results — in line with expectations

•

Completed 5% common stock buyback authorization

•

Issued subordinated debt — fuel for growth

•

Investing now for the future

•

Loans increased $92 million, or 3% LQA; excludes net paydowns in the energy and FDIC acquired loan portfolios

•

Noninterest-bearing demand deposits (DDAs) increased $256 million, or 4%, linked-quarter

•

Seasonality and energy cycle impacted results

Loans

Total loans at March 31, 2015 were $13.9 billion, up $29.1 million from December 31, 2014.

Net loan growth during the quarter was mainly in the Alabama and Florida markets, with additional growth in indirect and mortgage lending. Louisiana and Texas markets were impacted by both the energy cycle and annual seasonality. Historically, loans build towards year end with payoffs and paydowns in the first quarter of each year.

At March 31, 2015, loans in the energy segment totaled $1.67 billion, or 12% of total loans. The energy portfolio declined approximately $50 million linked-quarter and is comprised of credits to both the E&P industry and support industries. Additional details of the energy portfolio are included in the presentation slides posted on our Investor Relations website.

In light of the first quarter’s net paydowns in the energy portfolio, and the expected headwinds related to the current energy cycle, management has updated its end of period annual loan growth guidance for 2015 to 5-8%.

Average loans totaled $13.9 billion for the first quarter of 2015, up $291 million, or 2%, from the fourth quarter of 2014.

Hancock reports first quarter 2015 financial results

April 23, 2015

Deposits

Total deposits at March 31, 2015 were $16.9 billion, up $288 million, or 2%, from December 31, 2014. Average deposits for the first quarter of 2015 were $16.5 billion, up $593 million, or 4%, from the fourth quarter of 2014.

Noninterest-bearing demand deposits (DDAs) totaled $6.2 billion at March 31, 2015, up $256 million, or 4%, compared to December 31, 2014. DDAs comprised 37% of total period-end deposits at March 31, 2015.

Interest-bearing transaction and savings deposits totaled $6.6 billion at the end of the first quarter of 2015, up $45 million, or 1%, from December 31, 2014. Time deposits (CDs) of $2.3 billion grew $140 million, or 7%, while interest-bearing public fund deposits decreased $154 million, or 8%, to $1.8 billion at March 31, 2015. A portion of the public fund balances were seasonal, with runoff in those deposits expected in the first quarter of 2015.

Asset Quality

Nonperforming assets (NPAs) totaled $141 million at March 31, 2015, down $7 million from December 31, 2014. During the first quarter of 2015, total nonperforming loans increased approximately $10 million while foreclosed and surplus real estate (ORE) and other foreclosed assets decreased approximately $17 million. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 1.01% at March 31, 2015, down 5 bps from December 31, 2014.

The total allowance for loan losses was $128.4 million at March 31, 2015, down $0.4 million from December 31, 2014. The ratio of the allowance for loan losses to period-end loans was 0.92% at March 31, 2015, virtually unchanged from December 31, 2014. The allowance maintained on the non-FDIC acquired portion of the loan portfolio increased $2.6 million linked-quarter, totaling $100.7 million, and the impaired reserve on the FDIC acquired loan portfolio declined $2.9 million linked-quarter.

Pricing pressures on oil continued during the first quarter and led to some downward pressure on risk ratings during the quarter. Based on those changes, plus updates to the qualitative factors related to energy, the reserve for the energy portfolio increased approximately $8 million linked-quarter. Management believes that if further risk rating downgrades occur they could lead to additional loan loss provisions but not translate to significant losses. The impact and severity will depend on the overall oil price reduction and the duration of the cycle. Additional details of the energy portfolio are included in the presentation slides posted on our Investor Relations website.

Net charge-offs from the non-FDIC acquired loan portfolio were $3.7 million, or 0.11% of average total loans on an annualized basis in the first quarter of 2015, up from $2.6 million, or 0.08% of average total loans in the fourth quarter of 2014.

During the first quarter of 2015, Hancock recorded a total provision for loan losses of $6.2 million, down $3.6 million from the fourth quarter of 2014.

Hancock reports first quarter 2015 financial results

April 23, 2015

Net Interest Income and Net Interest Margin

Net interest income (TE) for the first quarter of 2015 was $161.1 million, down $2.5 million from the fourth quarter of 2014. There were 2 less calendar days in the first quarter which accounted for most of the decline. The impact of purchase accounting adjustments (PAAs) on net interest income was $15.3 million, down approximately $0.7 million linked-quarter. Excluding the impact from purchase accounting items, core net interest income decreased $1.8 million linked-quarter and reflected the change in days noted above. Average earning assets were $18.3 billion for the first quarter of 2015, up $405 million, or 2%, from the fourth quarter of 2014.

The reported net interest margin (TE) was 3.55% for the first quarter of 2015, down 8 bps from the fourth quarter of 2014. Approximately 2 bps of the decline was related to the decline in purchase accounting adjustments noted above. The core net interest margin (reported net interest income (TE) excluding total net purchase accounting adjustments, annualized, as a percent of average earning assets) declined 6 bps to 3.21% during the first quarter of 2015. Declines in the core loan yield (-3 bps) and the securities portfolio yield (-1 bp), and an increase in the cost of funds (+1 bp) were drivers of the margin compression. Interest on the issuance of $150 million in holding company subordinated debt in early March compressed the net interest margin 1 bp.

Noninterest Income

Noninterest income, including securities transactions, totaled $56.5 million for the first quarter of 2015, down $0.4 million, or 0.7%, from the fourth quarter of 2014. Included in the total is $0.3 million of securities transactions gains. Also included in the total is a reduction of $1.2 million related to the amortization of the FDIC indemnification asset, compared to a reduction of $2.1 million in the fourth quarter of 2014. Excluding the impact of these items, core noninterest income totaled $57.4 million, down $1.7 million linked-quarter.

Service charges on deposits totaled $17.3 million for the first quarter of 2015, down $1.7 million, or 9%, from the fourth quarter of 2014. Bank card and ATM fees totaled $11.2 million, virtually unchanged from the fourth quarter of 2014.

Trust fees totaled $11.2 million, down $0.4 million linked-quarter. Trust fees were impacted by the decline in energy stocks related to the current energy cycle. Investment and annuity income and insurance fees totaled $6.8 million, up $0.2 million, or 3%, linked-quarter.

Fees from secondary mortgage operations totaled $2.7 million for the first quarter of 2015, up $0.7 million, or 33%, linked-quarter. During the first quarter, a greater portion of loan production was sold in the secondary market compared to last quarter. Management expects this trend to continue through 2015.

Other noninterest income totaled $8.2 million, down $0.4 million, or 5%, from the fourth quarter of 2014.

Hancock reports first quarter 2015 financial results

April 23, 2015

Noninterest Expense & Taxes

Noninterest expense for the first quarter of 2015 totaled $153.5 million and included $7.3 million of nonoperating expenses. Excluding these costs, operating expense totaled $146.2 million in the first quarter of 2015, up $2.1 million, or 1.5%, linked-quarter. (The details of the changes in the noninterest expense categories noted below exclude the impact of nonoperating items.)

Total personnel expense was $80.1 million in the first quarter of 2015, up $0.6 million, or less than 1%, from the fourth quarter of 2014. Annual seasonality impacted benefits (up $3.0 million linked-quarter), which was offset by a reduction in salary expense of $2.4 million during the first quarter of 2015.

Occupancy and equipment expense totaled $15.1 million in the first quarter of 2015, up $0.5 million, or 4%, from the fourth quarter of 2014.

ORE expense totaled $0.5 million for the first quarter of 2015, down $0.5 million, or 54% linked-quarter.

Other operating expense totaled $44.2 million in the first quarter of 2015, up $1.7 million, or 4%, from the fourth quarter of 2014.

The effective income tax rate for the first quarter 2015 was 27%, virtually unchanged from the fourth quarter of 2014. Management expects the effective income tax rate to approximate 27-29% in 2015. 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, 2015 totaled $2.4 billion. The tangible common equity (TCE) ratio was 8.40%, down 19 bps from December 31, 2014. The decline in the TCE ratio mainly reflects the repurchase of common shares during the quarter.

In July of 2014, the Board of Directors authorized a new common stock repurchase program for up to 5%, or approximately 4 million shares, of the Company’s common stock. During the first quarter the company completed this buyback authorization. The company repurchased 2,563,607 shares of its common stock at an average price of $29.36. Since the third quarter of 2014 the company has repurchased approximately 4.1 million shares at an average price of $30.02

On March 9, 2015 the company issued $150 million of 30-year subordinated debt at a rate of 5.95%. The subordinated debt was used to complete the recent stock buyback authorization with the remainder to be used for general corporate purposes. Management and the board will continue to review additional options to deploy excess capital in the best interest of the company and its shareholders through organic growth, mergers and acquisitions, stock buybacks and/or dividends.

Hancock reports first quarter 2015 financial results

April 23, 2015

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 Friday, April 24, 2015 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 May 1, 2015 by dialing (855) 859-2056 or (404) 537-3406, passcode 16414837.

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 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 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, the impact of the branch rationalization process, details of the common stock buyback, 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 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.

HANCOCK HOLDING COMPANY

QUARTERLY HIGHLIGHTS

(Unaudited)


	Three Months Ended
(amounts in thousands, except per share data)	3/31/2015			12/31/2014			9/30/2014			6/30/2014			3/31/2014
INCOME STATEMENT DATA
Net interest income	$	158,158		$	160,813		$	163,541		$	164,778		$	165,562
Net interest income (TE) (a)		161,114			163,581			166,230			167,332			168,198
Provision for loan losses		6,154			9,718			9,468			6,691			7,963
Noninterest income excluding securities transactions		56,213			56,961			57,941			56,398			56,699
Securities transactions gains		333			—			—			—			—
Noninterest expense (excluding nonoperating expense items)		146,201			144,080			145,192			144,727			146,982
Nonoperating expense items		7,314			9,667			3,887			12,131			—
Net income		40,159			40,092			46,553			39,962			49,115
Operating income (b)		44,697			46,376			49,079			49,575			49,115
Core income (c)		39,619			41,537			41,176			38,736			37,742

PERIOD-END BALANCE SHEET DATA
Loans	$	13,924,386		$	13,895,276		$	13,348,574		$	12,884,056		$	12,527,937
Investment securities		4,107,904			3,826,454			3,913,370			3,677,229			3,797,883
Earning assets		18,568,037			18,544,930			17,748,600			17,023,990			16,622,104
Total assets		20,724,511			20,747,266			19,985,950			19,349,431			19,004,170
Noninterest-bearing deposits		6,201,403			5,945,208			5,866,255			5,723,663			5,613,872
Total deposits		16,860,485			16,572,831			15,736,694			15,245,227			15,274,774
Common shareholders’ equity		2,425,098			2,472,402			2,509,342			2,492,582			2,462,534

AVERAGE BALANCE SHEET DATA
Loans	$	13,869,397		$	13,578,223		$	13,102,108		$	12,680,861		$	12,379,316
Investment securities (d)		3,772,997			3,836,123			3,780,089			3,716,563			3,935,616
Earning assets		18,315,839			17,911,143			17,324,444			16,791,744			16,740,353
Total assets		20,443,859			20,090,372			19,549,947			19,039,264			19,055,107
Noninterest-bearing deposits		5,924,196			5,849,356			5,707,523			5,505,735			5,499,993
Total deposits		16,485,259			15,892,507			15,371,209			15,060,581			15,269,143
Common shareholders’ equity		2,447,870			2,509,509			2,489,948			2,463,385			2,435,980

COMMON SHARE DATA
Earnings per share—diluted	$	0.49		$	0.48		$	0.56		$	0.48		$	0.58
Operating earnings per share—diluted (b)		0.55			0.56			0.59			0.59			0.58
Core earnings per share—diluted (c)		0.49			0.50			0.49			0.46			0.45
Cash dividends per share	$	0.24		$	0.24		$	0.24		$	0.24		$	0.24
Book value per share (period-end)	$	31.14		$	30.74		$	30.76		$	30.45		$	29.93
Tangible book value per share (period-end)		21.55			21.37			21.44			21.08			20.47
Weighted average number of shares—diluted		79,661			81,530			81,942			82,174			82,534
Period-end number of shares		77,886			80,426			81,567			81,860			82,282
Market data
High sales price	$	31.13		$	35.67		$	36.47		$	37.86		$	38.50
Low sales price		24.96			28.68			31.25			32.02			32.66
Period-end closing price		29.86			30.70			32.05			35.32			36.65
Trading volume		51,866			36,396			25,553			27,432			31,328

PERFORMANCE RATIOS
Return on average assets		0.80	%		0.79	%		0.94	%		0.84	%		1.05	%
Return on average assets (operating) (b)		0.89	%		0.92	%		1.00	%		1.04	%		1.05	%
Return on average common equity		6.65	%		6.34	%		7.42	%		6.51	%		8.18	%
Return on average common equity (operating) (b)		7.41	%		7.33	%		7.82	%		8.07	%		8.18	%
Return on average tangible common equity		9.60	%		9.08	%		10.70	%		9.47	%		12.04	%
Return on average tangible common equity (operating) (b)		10.68	%		10.50	%		11.28	%		11.75	%		12.04	%
Tangible common equity ratio (e)		8.40	%		8.59	%		9.10	%		9.29	%		9.24	%
Net interest margin (TE) (a)		3.55	%		3.63	%		3.81	%		3.99	%		4.06	%
Average loan/deposit ratio		84.13	%		85.44	%		85.24	%		84.20	%		81.07	%
Efficiency ratio (f)		64.36	%		62.41	%		61.84	%		61.67	%		62.23	%
Allowance for loan losses as a percent of period-end loans		0.92	%		0.93	%		0.94	%		1.00	%		1.02	%
Annualized net noncovered charge-offs to average loans		0.11	%		0.08	%		0.19	%		0.13	%		0.13	%
Allowance for loan losses to non-performing loans + accruing loans 90 days past due		123.14	%		137.96	%		128.44	%		126.26	%		112.64	%
Noninterest income excluding securities transactions as a percent of total revenue (TE) (a)		25.87	%		25.83	%		25.85	%		25.21	%		25.21	%
FTE headcount		3,785			3,794			3,787			3,901			3,974

(a)	Tax-equivalent (TE) amounts are calculated using a federal income tax rate of 35%.

(b)	Net income less tax-effected securities transactions and nonoperating expense 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)	Operating income excluding tax-effected purchase accounting adjustments. Management believes that reporting on core income provides a useful measure of financial performance that helps investors determine whether management is successfully executing its strategic initiatives.

(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, nonoperating expense items, and securities transactions.

HANCOCK HOLDING COMPANY

INCOME STATEMENT

(Unaudited)


	Three Months Ended
(dollars in thousands, except per share data)	3/31/2015			12/31/2014			3/31/2014
NET INCOME
Interest income	$	169,087		$	170,971		$	175,140
Interest income (TE)		172,043			173,739			177,776
Interest expense		10,929			10,158			9,578

Net interest income (TE)		161,114			163,581			168,198
Provision for loan losses		6,154			9,718			7,963
Noninterest income excluding securities transactions		56,213			56,961			56,699
Securities transactions gains		333			—			—
Noninterest expense		153,515			153,747			146,982

Income before income taxes		55,035			54,309			67,316
Income tax expense		14,876			14,217			18,201

Net income	$	40,159		$	40,092		$	49,115

ADJUSTMENTS FROM NET TO OPERATING INCOME
Securities transactions gains		(333	)		—			—
Expense and efficiency initiatives and other items		7,314			9,667			—
Taxes on adjustments at marginal tax rate		2,443			3,383			—

Total adjustments (net of taxes)		4,538			6,284			—

Operating income (g)	$	44,697		$	46,376		$	49,115

Purchase accounting adjustments (net of taxes)		5,078			4,839			11,373

Core income (h)	$	39,619		$	41,537		$	37,742

NONINTEREST INCOME AND NONINTEREST EXPENSE
Service charges on deposit accounts	$	17,315		$	19,025		$	18,712
Trust fees		11,200			11,559			10,238
Bank card and ATM fees		11,183			11,225			10,569
Investment & annuity fees		5,050			4,736			4,952
Secondary mortgage market operations		2,664			2,000			1,965
Insurance fees		1,754			1,862			3,744
Amortization of FDIC loss share receivable		(1,197	)		(2,113	)		(3,908	)
Other income		8,244			8,667			10,427

Noninterest income excluding securities transactions		56,213			56,961			56,699
Securities transactions gains		333			—			—

Total noninterest income including securities transactions	$	56,546		$	56,961		$	56,699

Personnel expense	$	80,117		$	79,522		$	81,432
Occupancy expense (net)		11,162			10,571			11,266
Equipment expense		3,933			3,986			4,274
Other real estate owned expense (net)		456			1,001			1,777
Other operating expense		44,215			42,555			41,195
Amortization of intangibles		6,318			6,445			7,038

Total operating expense		146,201			144,080			146,982
Nonoperating expense items		7,314			9,667			—

Total noninterest expense	$	153,515		$	153,747		$	146,982

COMMON SHARE DATA
Earnings per share:
Basic	$	0.49		$	0.48		$	0.58
Diluted		0.49			0.48			0.58
Operating earnings per share: (g)
Basic	$	0.55		$	0.56		$	0.58
Diluted		0.55			0.56			0.58
Core earnings per share: (h)
Basic	$	0.49		$	0.50		$	0.45
Diluted		0.49			0.50			0.45

(g)	Net income less tax-effected securities transactions and nonoperating expense 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)	Operating income excluding tax-effected purchase accounting adjustments. Management believes that reporting on core income provides a useful measure of financial performance that helps investors determine whether management is successfully executing its strategic initiatives.

HANCOCK HOLDING COMPANY

INCOME STATEMENT

(Unaudited)


	Three months ended
(dollars in thousands)	3/31/2015			12/31/2014			9/30/2014			6/30/2014			3/31/2014
Interest income	$	169,087		$	170,971		$	172,701		$	174,001		$	175,140
Interest income (TE)		172,043			173,739			175,390			176,555			177,776
Interest expense		10,929			10,158			9,160			9,223			9,578

Net interest income (TE)		161,114			163,581			166,230			167,332			168,198
Provision for loan losses		6,154			9,718			9,468			6,691			7,963
Noninterest income excluding securities transactions		56,213			56,961			57,941			56,398			56,699
Securities transactions gains		333			—			—			—			—
Noninterest expense		153,515			153,747			149,079			156,858			146,982

Income before income taxes		55,035			54,309			62,935			57,627			67,316
Income tax expense		14,876			14,217			16,382			17,665			18,201

Net income	$	40,159		$	40,092		$	46,553		$	39,962		$	49,115

ADJUSTMENTS FROM NET TO OPERATING INCOME
Securities transactions gains		(333	)		—			—			—			—
Expense & efficiency initiative and other items		7,314			9,667			3,887			12,131			—

Total nonoperating expense items		6,981			9,667			3,887			12,131			—
Taxes on adjustments at marginal tax rate		2,443			3,383			1,361			2,518			—

Adjustments (net of taxes)		4,538			6,284			2,526			9,613			—

Operating income (g)	$	44,697		$	46,376		$	49,079		$	49,575		$	49,115

Core income (h)	$	39,619		$	41,537		$	41,176		$	38,736		$	37,742

NONINTEREST INCOME AND NONINTEREST EXPENSE
Service charges on deposit accounts	$	17,315		$	19,025		$	20,000		$	19,269		$	18,712
Trust fees		11,200			11,559			11,530			11,499			10,238
Bank card and ATM fees		11,183			11,225			11,641			11,596			10,569
Investment & annuity fees		5,050			4,736			5,506			5,097			4,952
Secondary mortgage market operations		2,664			2,000			2,313			1,758			1,965
Insurance fees		1,754			1,862			1,979			1,888			3,744
Amortization of FDIC loss share receivable		(1,197	)		(2,113	)		(2,760	)		(3,321	)		(3,908	)
Other income		8,244			8,667			7,732			8,612			10,427

Noninterest income excluding securities transactions		56,213			56,961			57,941			56,398			56,699
Securities transactions gains		333			—			—			—			—

Total noninterest income including securities transactions	$	56,546		$	56,961		$	57,941		$	56,398		$	56,699

Personnel expense	$	80,117		$	79,522		$	80,043		$	79,506		$	81,432
Occupancy expense (net)		11,162			10,571			10,798			10,840			11,266
Equipment expense		3,933			3,986			4,542			4,059			4,274
Other real estate owned expense (net)		456			1,001			(104	)		84			1,777
Other operating expense		44,215			42,555			43,343			43,494			41,195
Amortization of intangibles		6,318			6,445			6,570			6,744			7,038

Total operating expense		146,201			144,080			145,192			144,727			146,982
Nonoperating expense items		7,314			9,667			3,887			12,131			—

Total noninterest expense	$	153,515		$	153,747		$	149,079		$	156,858		$	146,982

(g)	Net income less tax-effected securities transactions and nonoperating expense 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)	Operating income excluding tax-effected purchase accounting adjustments. Management believes that reporting on core income provides a useful measure of financial performance that helps investors determine whether management is successfully executing its strategic initiatives.

HANCOCK HOLDING COMPANY

PERIOD-END BALANCE SHEET

(Unaudited)


	Three Months Ended
(dollars in thousands)	3/31/2015			12/31/2014			9/30/2014			6/30/2014			3/31/2014
ASSETS
Commercial non-real estate loans	$	5,987,084		$	6,044,060		$	5,587,137		$	5,393,691		$	5,198,029
Construction and land development loans		1,113,510			1,106,761			1,095,902			1,040,656			978,798
Commercial real estate loans		3,150,103			3,144,048			3,100,834			3,056,263			3,069,316
Residential mortgage loans		1,913,885			1,894,181			1,858,490			1,771,271			1,720,307
Consumer loans		1,759,804			1,706,226			1,706,211			1,622,175			1,561,487

Total loans		13,924,386			13,895,276			13,348,574			12,884,056			12,527,937
Loans held for sale		19,950			20,252			15,098			22,017			15,911
Securities		4,107,904			3,826,454			3,913,370			3,677,229			3,797,883
Short-term investments		515,797			802,948			471,558			440,688			280,373

Earning assets		18,568,037			18,544,930			17,748,600			17,023,990			16,622,104
Allowance for loan losses		(128,386	)		(128,762	)		(125,572	)		(128,672	)		(128,248	)
Goodwill		621,193			621,193			621,193			621,193			625,675
Other intangible assets, net		125,404			132,810			139,256			145,825			152,734
Other assets		1,538,263			1,577,095			1,602,473			1,687,095			1,731,905

Total assets	$	20,724,511		$	20,747,266		$	19,985,950		$	19,349,431		$	19,004,170

LIABILITIES
Noninterest-bearing deposits	$	6,201,403		$	5,945,208		$	5,866,255		$	5,723,663		$	5,613,872
Interest-bearing transaction and savings deposits		6,576,658			6,531,628			6,325,671			6,079,837			6,118,150
Interest-bearing public fund deposits		1,828,559			1,982,616			1,534,678			1,484,188			1,451,430
Time deposits		2,253,865			2,113,379			2,010,090			1,957,539			2,091,322

Total interest-bearing deposits		10,659,082			10,627,623			9,870,439			9,521,564			9,660,902

Total deposits		16,860,485			16,572,831			15,736,694			15,245,227			15,274,774
Short-term borrowings		755,250			1,151,573			1,171,809			1,063,664			712,634
Long-term debt		516,007			374,371			376,452			374,991			380,001
Other liabilities		167,671			176,089			191,653			172,967			174,227

Total liabilities		18,299,413			18,274,864			17,476,608			16,856,849			16,541,636

COMMON SHAREHOLDERS’ EQUITY
Common stock net of treasury and capital surplus		1,726,736			1,798,980			1,832,529			1,838,931			1,837,461
Retained earnings		744,131			723,497			703,506			676,942			657,062
Accumulated other comprehensive income		(45,769	)		(50,075	)		(26,693	)		(23,291	)		(31,989	)

Total common shareholders’ equity		2,425,098			2,472,402			2,509,342			2,492,582			2,462,534

Total liabilities & shareholders’ equity	$	20,724,511		$	20,747,266		$	19,985,950		$	19,349,431		$	19,004,170

CAPITAL RATIOS
Tangible common equity	$	1,678,453		$	1,718,343		$	1,748,828		$	1,725,489		$	1,684,037
Tier 1 capital (i)		1,769,708			1,777,280			1,784,588			1,758,178			1,725,947
Common equity (period-end) as a percent of total assets (period-end)		11.70	%		11.92	%		12.56	%		12.88	%		12.96	%
Tangible common equity ratio		8.40	%		8.59	%		9.10	%		9.29	%		9.24	%
Leverage (Tier 1) ratio (i)		8.98	%		9.17	%		9.48	%		9.61	%		9.43	%
Tier 1 risk-based capital ratio (i)		10.63	%		11.23	%		11.59	%		11.83	%		11.90	%
Total risk-based capital ratio (i)		12.54	%		12.30	%		12.66	%		12.96	%		13.20	%

(i)	Estimated for most recent period-end. Current period regulatory ratios reflect estimated impact of Basel III capital requirements effective January 1, 2015.

HANCOCK HOLDING COMPANY

AVERAGE BALANCE SHEET

(Unaudited)


	Three Months Ended
(dollars in thousands)	3/31/2015			12/31/2014			3/31/2014
ASSETS
Commercial non-real estate loans	$	5,995,687		$	5,727,003		$	5,088,061
Construction and land development loans		1,121,059			1,159,378			953,328
Commercial real estate loans		3,118,522			3,057,022			3,054,217
Residential mortgage loans		1,902,873			1,886,230			1,720,640
Consumer loans		1,731,256			1,748,590			1,563,070

Total loans		13,869,397			13,578,223			12,379,316
Loans held for sale		15,567			15,424			19,207
Securities (j)		3,772,997			3,836,123			3,935,616
Short-term investments		657,878			481,373			406,214

Earning assets		18,315,839			17,911,143			16,740,353
Allowance for loan losses		(130,217	)		(127,356	)		(134,670	)
Goodwill and other intangible assets		750,705			757,123			781,434
Other assets		1,507,532			1,549,462			1,667,990

Total assets	$	20,443,859		$	20,090,372		$	19,055,107

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	5,924,196		$	5,849,356		$	5,499,993

Interest-bearing transaction and savings deposits		6,506,812			6,380,347			6,072,113
Interest-bearing public fund deposits		1,815,445			1,598,482			1,526,611
Time deposits		2,238,806			2,064,322			2,170,426

Total interest-bearing deposits		10,561,063			10,043,151			9,769,150

Total deposits		16,485,259			15,892,507			15,269,143
Short-term borrowings		920,436			1,135,255			785,063
Long-term debt		412,938			376,819			386,026
Other liabilities		177,356			176,282			178,895
Common shareholders’ equity		2,447,870			2,509,509			2,435,980

Total liabilities & shareholders’ equity	$	20,443,859		$	20,090,372		$	19,055,107

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

HANCOCK HOLDING COMPANY

AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY

(Unaudited)


	Three Months Ended
	3/31/2015							12/31/2014							3/31/2014
(dollars in millions)	Volume		Interest		Rate			Volume		Interest		Rate			Volume		Interest		Rate
AVERAGE EARNING ASSETS
Commercial & real estate loans (TE)	$	10,235.2	$	106.8		4.23	%	$	9,943.4	$	105.8		4.23	%	$	9,095.7	$	107.9		4.81	%
Residential mortgage loans		1,902.9		20.4		4.30	%		1,886.2		20.3		4.31	%		1,720.6		21.3		4.96	%
Consumer loans		1,731.3		21.9		5.13	%		1,748.6		23.9		5.43	%		1,563.1		23.1		6.00	%
Loan fees & late charges		—		0.3		0.00	%		—		0.6		0.00	%		—		0.8		0.00	%

Total loans (TE)		13,869.4		149.4		4.36	%		13,578.2		150.6		4.41	%		12,379.4		153.1		5.00	%

Loans held for sale		15.6		0.1		2.45	%		15.4		0.2		4.27	%		19.2		0.2		4.06	%

US Treasury and government agency securities		275.0		1.1		1.58	%		300.0		1.1		1.52	%		93.5		0.5		2.28	%
CMOs and mortgage backed securities		3,290.5		18.6		2.26	%		3,324.5		19.1		2.30	%		3,612.8		21.2		2.34	%
Municipals (TE)		195.8		2.3		4.61	%		199.3		2.3		4.63	%		217.0		2.5		4.56	%
Other securities		11.6		0.1		4.47	%		12.3		0.1		2.24	%		12.3		0.1		3.87	%

Total securities (TE) (j)		3,772.9		22.1		2.35	%		3,836.1		22.6		2.36	%		3,935.6		24.3		2.47	%

Total short-term investments		657.9		0.4		0.22	%		481.4		0.3		0.23	%		406.2		0.2		0.23	%

Average earning assets yield (TE)	$	18,315.8		172.0		3.79	%	$	17,911.1		173.7		3.86	%	$	16,740.4		177.8		4.29	%

INTEREST-BEARING LIABILITIES
Interest-bearing transaction and savings deposits	$	6,506.8		2.2		0.14	%	$	6,380.3		2.1		0.13	%	$	6,072.1		1.5		0.10	%
Time deposits		2,238.8		3.7		0.67	%		2,064.3		3.5		0.68	%		2,170.4		3.1		0.58	%
Public funds		1,815.4		1.2		0.27	%		1,598.5		1.1		0.28	%		1,526.6		0.8		0.20	%

Total interest-bearing deposits		10,561.0		7.1		0.27	%		10,043.1		6.7		0.27	%		9,762.1		5.4		0.22	%

Short-term borrowings		920.5		0.2		0.08	%		1,135.3		0.3		0.09	%		785.1		1.0		0.54	%
Long-term debt		412.9		3.6		3.57	%		376.8		3.1		3.28	%		386.0		3.2		3.34	%

Total borrowings		1,333.4		3.8		1.16	%		1,512.1		3.4		0.88	%		1,171.1		4.2		1.46	%

Total interest-bearing liabilities cost		11,894.4		10.9		0.37	%		11,555.2		10.1		0.35	%		10,940.2		9.6		0.36	%

Net interest-free funding sources		6,421.4							6,355.9							5,800.2

Total cost of funds		18,315.8		10.9		0.24	%		17,911.1		10.1		0.23	%		16,740.4		9.6		0.23	%

Net Interest Spread (TE)			$	161.1		3.42	%			$	163.6		3.51	%			$	168.2		3.93	%

Net Interest Margin (TE)	$	18,315.8	$	161.1		3.55	%	$	17,911.1	$	163.6		3.63	%	$	16,740.4	$	168.2		4.06	%

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

HANCOCK HOLDING COMPANY

ASSET QUALITY INFORMATION

(Unaudited)


	Three Months Ended
(dollars in thousands)	3/31/2015			12/31/2014			3/31/2014
Nonaccrual loans (k)	$	90,821		$	79,537		$	101,400
Restructured loans—still accruing		7,564			8,971			8,459

Total nonperforming loans		98,385			88,508			109,859
ORE and foreclosed assets		42,956			59,569			69,813

Total nonperforming assets	$	141,341		$	148,077		$	179,672

Nonperforming assets as a percent of loans, ORE and foreclosed assets		1.01	%		1.06	%		1.43	%
Accruing loans 90 days past due	$	5,872		$	4,825		$	3,998
Accruing loans 90 days past due as a percent of loans		0.04	%		0.03	%		0.03	%
Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets		1.05	%		1.10	%		1.46	%

ALLOWANCE FOR LOAN LOSSES
Beginning Balance	$	128,762		$	125,572		$	133,626
Net provision for loan losses—FDIC acquired loans		(70	)		(160	)		(302	)
Provision for loan losses—non-FDIC acquired loans		6,224			9,878			8,265

Net provision for loan losses		6,154			9,718			7,963

(Decrease) increase in FDIC loss share receivable		(421	)		(4,514	)		(6,853	)
Net charge-offs—FDIC acquired		2,455			(624	)		2,510
Charge-offs—non-FDIC acquired		7,460			8,229			7,482
Recoveries—non-FDIC acquired		(3,806	)		(5,591	)		(3,504	)

Net charge-offs		6,109			2,014			6,488

Ending Balance	$	128,386		$	128,762		$	128,248

Allowance for loan losses to nonperforming loans + accruing loans 90 days past due		123.14	%		137.96	%		112.64	%

NET CHARGE-OFF INFORMATION
Net charge-offs—non-FDIC acquired:
Commercial & real estate loans	$	474		$	1,446		$	1,392
Residential mortgage loans		904			349			147
Consumer loans		2,276			843			2,439

Total net charge-offs—non-FDIC acquired	$	3,654		$	2,638		$	3,978

Net charge-offs—non-FDIC acquired to average loans:
Commercial & real estate loans		0.02	%		0.06	%		0.06	%
Residential mortgage loans		0.19	%		0.07	%		0.03	%
Consumer loans		0.53	%		0.19	%		0.63	%

Total net charge-offs—non-FDIC acquired to average loans		0.11	%		0.08	%		0.13	%

(k)

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 $5.0 million, $7.0 million, and $16.1 million at 3/31/15, 12/31/14 and 3/31/14, respectively, in nonaccruing restructured loans.

HANCOCK HOLDING COMPANY

ASSET QUALITY INFORMATION

(Unaudited)


	Three months ended
(dollars in thousands)	3/31/2015			12/31/2014			9/30/2014			6/30/2014			3/31/2014
Nonaccrual loans	$	90,821		$	79,537		$	83,154		$	89,901		$	101,400
Restructured loans—still accruing		7,564			8,971			7,944			7,868			8,459

Total nonperforming loans		98,385			88,508			91,098			97,769			109,859
ORE and foreclosed assets		42,956			59,569			56,081			59,732			69,813

Total nonperforming assets	$	141,341		$	148,077		$	147,179		$	157,501		$	179,672

Nonperforming assets as a percent of loans, ORE and foreclosed assets		1.01	%		1.06	%		1.10	%		1.22	%		1.43	%
Accruing loans 90 days past due	$	5,872		$	4,825		$	6,667		$	4,142		$	3,998
Accruing loans 90 days past due as a percent of loans		0.04	%		0.03	%		0.05	%		0.03	%		0.03	%
Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets		1.05	%		1.10	%		1.15	%		1.25	%		1.46	%

Allowance for loan losses	$	128,386		$	128,762		$	125,572		$	128,672		$	128,248
Allowance for loan losses as a percent of period-end loans		0.92	%		0.93	%		0.94	%		1.00	%		1.02	%
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due		123.14	%		137.96	%		128.44	%		126.26	%		112.64	%

Provision for loan losses	$	6,154		$	9,718		$	9,468		$	6,691		$	7,963

NET CHARGE-OFF INFORMATION
Net charge-offs—non-FDIC acquired:
Commercial & real estate loans	$	474		$	1,446		$	2,451		$	1,148		$	1,392
Residential mortgage loans		904			349			558			587			147
Consumer loans		2,276			843			3,430			2,329			2,439

Total net charge-offs—non-FDIC acquired	$	3,654		$	2,638		$	6,439		$	4,064		$	3,978

Net charge-offs—non-FDIC acquired to average loans:
Commercial & real estate loans		0.02	%		0.06	%		0.10	%		0.05	%		0.06	%
Residential mortgage loans		0.19	%		0.07	%		0.12	%		0.13	%		0.03	%
Consumer loans		0.53	%		0.19	%		0.82	%		0.59	%		0.63	%

Total net charge-offs—non-FDIC acquired to average loans		0.11	%		0.08	%		0.19	%		0.13	%		0.13	%

AVERAGE LOANS
Commercial & real estate loans	$	10,235,268		$	9,943,403		$	9,627,566		$	9,355,196		$	9,095,606
Residential mortgage loans		1,902,873			1,886,230			1,814,186			1,744,313			1,720,640
Consumer loans		1,731,256			1,748,590			1,660,356			1,581,352			1,563,070

Total average loans	$	13,869,397		$	13,578,223		$	13,102,108		$	12,680,861		$	12,379,316

HANCOCK HOLDING COMPANY

SUPPLEMENTAL ASSET QUALITY INFORMATION

(Unaudited)


	Originated Loans		Acquired Loans (l)			FDIC Acquired (m)			Total
(dollars in thousands)	3/31/2015
Nonaccrual loans (n)	$	83,412	$	5,820		$	1,589		$	90,821
Restructured loans—still accruing		7,564		—			—			7,564

Total nonperforming loans		90,976		5,820			1,589			98,385
ORE and foreclosed assets (o)		29,380		—			13,576			42,956

Total nonperforming assets	$	120,356	$	5,820		$	15,165		$	141,341

Accruing loans 90 days past due	$	5,659	$	213			—		$	5,872
Allowance for loan losses	$	100,494	$	254		$	27,638		$	128,386


	12/31/2014
Nonaccrual loans (n)	$	71,296	$	6,139		$	2,102		$	79,537
Restructured loans—still accruing		8,971		—			—			8,971

Total nonperforming loans		80,267		6,139			2,102			88,508
ORE and foreclosed assets (o)		40,148		—			19,421			59,569

Total nonperforming assets	$	120,415	$	6,139		$	21,523		$	148,077

Accruing loans 90 days past due	$	4,564	$	261			—		$	4,825
Allowance for loan losses	$	97,701	$	477		$	30,584		$	128,762


	Originated Loans		Acquired Loans (l)			FDIC Acquired (m)			Total
LOANS OUTSTANDING	3/31/2015
Commercial non-real estate loans	$	5,861,887	$	118,260		$	6,937		$	5,987,084
Construction and land development loans		1,087,449		14,579			11,482			1,113,510
Commercial real estate loans		2,492,351		629,975			27,777			3,150,103
Residential mortgage loans		1,736,033		2,485			175,367			1,913,885
Consumer loans		1,742,810		25			16,969			1,759,804

Total loans	$	12,920,530	$	765,324		$	238,532		$	13,924,386

Change in loan balance from previous quarter	$	110,331	($	67,344	)	($	13,877	)	$	29,110


	12/31/2014
Commercial non-real estate loans	$	5,917,728	$	120,137		$	6,195		$	6,044,060
Construction and land development loans		1,073,964		21,123			11,674			1,106,761
Commercial real estate loans		2,428,195		688,045			27,808			3,144,048
Residential mortgage loans		1,704,770		2,378			187,033			1,894,181
Consumer loans		1,685,542		985			19,699			1,706,226

Total loans	$	12,810,199	$	832,668		$	252,409		$	13,895,276

Change in loan balance from previous quarter	$	1,524,631	($	949,508	)	($	28,421	)	$	546,702

(l)	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.

(m)

Loans acquired in an FDIC-assisted transaction. Non-single family loss share agreement expired at 12/31/14. As of 3/31/15, $186.1 million in loans and $6.0 million in ORE remain covered by the FDIC single family loss share agreement, providing considerable protection against credit risk. As of 12/31/14, $196.7 million in loans and $7.1 million in ORE remained covered by the FDIC single family loss share agreement.

(n)	Included in originated nonaccrual loans are $5.0 million and $7.0 million at 3/31/15 and 12/31/14, respectively, in nonaccruing restructured loans.

(o)	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.

First Quarter 2015

Financial Results

April 23, 2015

First Quarter 2015

Financial Results

April 23, 2015

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, 2014 and form 10-Q for the most recent quarter end.

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 Statement

Hancock Holding Company

•

$21 billion in Total Assets

•

$14 billion in Total Loans

•

$17 billion in Total Deposits

•

ROA (operating) 0.89%

•

ROTCE (operating) 10.68%

•

NIM 3.55%

•

Efficiency Ratio 64.36%

•

Tangible Common Equity (TCE) 8.40%

•

Rated among the strongest, safest

financial institutions in the country by

BauerFinancial, Inc.

•

Earned top customer service marks with

Greenwich Excellence Awards

As of 1Q15 and March 31, 2015

First Quarter 2015 Highlights

•

Stable operating results --

in line

with expectations

•

Completed 5% common stock

buyback authorization

•

Issued Subordinated Debt --

fuel

for growth

•

Investing now for future

•

Seasonality and energy cycle

impacted results

•

Last quarter for net purchase

accounting items to significantly

impact net income and E.P.S.

Core vs. operating gap to be eliminated in future

quarters

($s in millions; except per share

data)

1Q15

4Q14

Fav/

(unfav)

Net Income

$40.2

$40.1

---

Earnings Per Share (diluted)

$.49

$.48

Operating Income*

$44.7

$46.4

(4%)

Operating Earnings Per Share

$.55

$.56

(2%)

Nonoperating expense items

$7.3

$9.7

25%

Return on Assets (operating) (%)

0.89

0.92

(3bps)

Return on Tangible Common

Equity (operating) (%)

10.68

10.50

18bps

Total Loans

$13,924

$13,895

---

Total Deposits

$16,860

$16,573

Net Interest Margin (%)

3.55

3.63

(8bps)

Net Interest Margin (%) (core)

3.21

3.27

(6bps)

Net Charge-offs (%)

(non-covered)

0.11

0.08

(3bps)

Tangible Common Equity (%)

8.40

8.59

(19bps)

Efficiency Ratio** (%)

64.4

62.4

(200bps)

* Operating income is defined as net income excluding tax-effected securities transactions gains or losses and nonoperating expense items.

** Noninterest expense to total revenue (TE) excluding amortization of purchased intangibles, nonoperating expense items, and securities transactions.

Trends in Core Results;

Stable Gap Between Operating and Core

E.P.S.

ROA

We define core income as operating income less purchase accounting adjustments (PAA). PAA items include 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 intangibles. Operating income is defined as net income excluding tax-effected

securities transactions gains or losses and nonoperating expense

items. See table on slide 30.

Expect to eliminate the gap between core and operating results next quarter

First Quarter Seasonality and Energy

Cycle Impacted Loan Growth

•

Total EOP loans of $13.9 billion were up $29 million, virtually

unchanged linked-quarter; excluding impact of FDIC Acquired and

energy, loans increased $92 million, or 3%, linked-quarter

•

Energy loans totaled $1.67 billion or 12% of total loans at March 31,

2015, down $49 million LQ from paydowns; no energy portfolio growth

expected for the remainder of 2015 due to headwinds from the current

cycle

•

Net

loan

growth

during

the

quarter

was

mainly

from

Alabama

and

Florida

markets,

with

additional

growth

indirect

and

mortgage

lending

•

Net growth in Louisiana and Texas markets were impacted by both the

energy cycle and seasonality

$s in millions

$s in billions; LQA excludes FDIC acquired loans

Diversified Loan Portfolio

•

88% of the loan portfolio is not energy related

•

Diversified economies across our 5-state footprint support a diversified

loan portfolio

As of March 31, 2015

Total Loans at

3/31/15 by

geography or

major line of

business

Energy Concentration Risk Is

Well-Managed

•

Energy lending has been a core competency for more than 60 years

•

Pricing pressures on oil have continued and we did see some

downward pressure on risk ratings this quarter

•

Management believes that further risk rating downgrades could

impact loan loss provisions but should not result in significant

losses

•

Impact and severity will depend on overall oil price reduction and

duration of the cycle

As of March 31, 2015

–

Disciplined

underwriting,

long

term

relationships

–

Continuing

review

credits

and

stay

our

customers

Oil & Gas Portfolio Strong;

Continuing To Monitor Credits

•

Relationship business dating back to post WWII

•

Our energy customers are an excellent source of no/low cost

core deposits

•

Low prices can limit loan growth for new bank customers

•

High credit quality portfolio

•

Our clients typically have low/moderate leverage and strong

balance sheets

•

With experienced management in place, many of our clients

have been reacting to the reduction in oil prices by proactively

managing expenses, lowering discretionary spending or

reducing capital expenditures

As of March 31, 2015

$s in millions

Diversified portfolio with concentration limits for

individual categories

High credit quality portfolio with historically low loss rates; disciplined underwriting

Low level of cumulative losses over previous down cycles

Upstream (E&P) Portfolio Diversified,

Profitable

•

Priority, secured loans

•

Approximately $25 million linked-quarter decrease in E&P outstandings

•

Current line utilization is approximately 60% up slightly linked-quarter

•

Approximately 60% oil, 40% gas

•

Lend only on proved

reserves (on a risked basis); 90%+ are covered by

Proved Developed Producing Reserves alone

•

E&P customers have hedges in place

–

Approximately

2/3rds

our

clients

are

hedged

with

average

tenor

1.5

years

•

Our clients breakeven at different prices/barrel oil

–

Breakeven varies depending on the basin

–

Our customers are diversified across 12 primary basins in the U.S. and in the Gulf of Mexico

–

Lower cost basins will remain active; higher cost basins will slow in activity

•

Borrowing base redeterminations twice per year; a handful of credits have already been

reviewed and adjustments made to overall commitment levels

As of March 31, 2015

Upstream (E&P) Portfolio Statistics

As of March 31, 2015

Average cash flow breakeven price per barrel of oil extracted, for our

clients, based on current proved, producing reserves is approximately

$25 per barrel (ie. lifting costs, taxes)

Low level of cumulative losses over previous down cycles even

with growth in outstandings

Support Sector Companies Have

Weathered Previous Cycles

•

Many of our clients have operated through

previous cycles, including the mid 80s, late 90’s

and 2008

•

Our clients typically have low/moderate leverage,

strong balance sheets and experienced

management

•

Most of the support nondrilling companies are

based in south Louisiana and Houston, and many

are supporting offshore activity

•

Decrease in outstandings of approximately $32

million linked-quarter

•

Current line utilization is approximately 57%

•

Day rates and service sector profitability is being

impacted, but we believe client experience and

liquidity will allow our customers to weather the

current cycle

As of March 31, 2015

Support Services Portfolio Statistics

$s in millions

Current

clients

Average

years in

business

Average

years with

the bank

Support

drilling

Support

nondrilling

110%

42%

As of March 31, 2015

Experienced, long-time customers with low level of

cumulative losses over previous down cycles

$s in millions

Potential

Impact To Provision From Energy

Downgrades (Downward Shock Scenarios are mutually exclusive)

Total

outstanding

at 3-31-15

Energy

Reserve*

3-31-15

Incremental

Provision

Scenario 1

Incremental

Provision

Scenario 2

Incremental

Provision

Scenario 3

$623MM

Upstream

$5.0MM

$0.9MM

$109MM

Midstream

$0.6MM

$1.0MM

$2.6MM

$270MM

Support –

Drilling

$4.1MM

$4.9MM

$8.2MM

$12.0MM

$672MM

Support –

Non-drilling

$10.3MM

$8.4MM

$22.4MM

$37.5MM

Total Incremental

Provision

---------

$15.2MM

$34.1MM

$53.0MM

$1.674B

Total Energy Reserve

(%)

$20.0MM

(1.17%)

$35.2MM

$54.1MM

$73.0MM

Scenario 1 –

all categories = 1 RR downgrade

Scenario 2 –

Upstream = 1 RR downgrade; all other sectors = 2 RR downgrade

Scenario 3 –

Upstream = 1 RR downgrade; Midstream = 2 RR downgrade; Support Sectors = 3 RR

downgrade

Impact and severity will depend on overall oil price reduction and duration of the cycle

* Reserve reflects the amount of C&I reserve (loss factors) applied to the energy loans risk ratings.

Allowance For Loan Losses

•

The allowance for loan losses was $128.4 million (0.92%) compared to $128.8 million

(0.93%) linked-quarter

–

The allowance maintained on the non-FDIC acquired portion of the loan portfolio

increased $2.6 million linked-quarter, totaling $100.7 million and the impaired reserve

on the FDIC acquired loan portfolio declined $2.9 million linked-quarter

–

Impact of the current energy cycle on the allowance*:

•

The first quarter’s allowance calculation reflects an $8 million build in the reserve

for the energy portfolio related to updates to risk ratings and changes in the

qualitative factors related to energy

•

We are disciplined in our underwriting, and while we could see some pressure in

risk ratings, based on what we know today we expect no significant loss in our

energy portfolio

•

We believe our current reserves are sufficient to cover any losses in the portfolio

•

Should pricing pressures on oil continue, we could see some downward pressure on

risk ratings that could lead to additional provision expense in future quarters

•

Impact and severity will depend on overall oil price reduction and duration of the

cycle

As of March 31, 2015

* Reserve reflects the amount of C&I reserve (loss factors) applied to the energy loans risk ratings.

–

ALLL for energy credits was 1.17% at March 31, 2015, up from 0.70% at 12-31-14

Solid Asset Quality Metrics

•

NPA ratio 1.01%, down 5 bps from 1.06% linked-quarter

–

Nonperforming assets totaled $141 million, down $7 million from December 31, 2014

–

Nonperforming loans increased approximately $10 million linked-quarter

–

ORE and foreclosed assets decreased approximately $17 million linked-quarter;

•

Includes approximately $3 million in sales related to former branch property and $7 million of sales of loss

share property

•

ORE includes approximately $9 million of former branch property

•

Provision for loan losses was $6.2 million, down $3.6 million from 4Q14

•

Non-FDIC acquired net charge-offs totaled $3.7 million, or 0.11%, up from $2.6 million, or

0.08%, in 4Q14

Nonperforming Asset (NPA) Ratio

As of March 31, 2015

Securities Portfolio No Longer

Funding Loan Growth

•

Portfolio totaled $4.1 billion, up $281 million

linked-quarter

•

Yield 2.35% -

down 1 bp linked-quarter

•

Unrealized gain (net) of $32.7 million on AFS

•

56% HTM, 44% AFS

•

Duration 3.45 compared to 3.51 at 12-31-14

•

Balance sheet is asset sensitive over a 2 year

period to rising interest rates under various

shock scenarios

•

IRR modeling is based on conservative

assumptions

–

Flat balance sheet

–

Loan portfolio 54% variable (with 56% LIBOR-based)

–

Modeled lag in deposit rate increases

–

Conservative % DDA attrition for certain increases in

rates

$s in millions

Period-end balances. As of March 31, 2015

Net Interest Income Scenarios

Regulatory Rate Shocks

Solid Levels Of Core Deposit Funding

•

Total deposits $16.9 billion, up $288 million, or 2%,

linked-quarter

Noninterest-bearing demand deposits (DDA) increased $256 million

$45 million increase in interest-bearing transaction and savings deposits

$140 million increase in time deposits (CDs)

Public fund deposits decreased $154 million related to seasonality

•

Funding mix remained strong

•

DDA comprised 37% of total period-end deposits

•

Cost of funds increased 1 basis point to 24 bps

$s in billions

$s in millions

Core NIM Expected To Stabilize

Core

NIM

reported

net

interest

income

(TE)

excluding

total

net

purchase

accounting

adjustments,

annualized,

percent

average

earning

assets.

(See

slide

29)

•

Reported net interest margin (NIM) 3.55%, down 8 bps linked-quarter

–

Approximately $1 million decline in purchase accounting loan accretion; 2 bps impact to 1Q15 NIM

–

Issued $150 million of holding company subordinated debt March 9, 2015; 1 bp impact to 1Q15 NIM

–

Declines in core loan yield (-3 bps) and securities yield (-1 bp), and increase in the cost of funds (+1 bp)

impacted NIM

–

2 fewer accrual days impacted net interest income

•

Core NIM declined 6 bps

–

Projected accretion will still lead to a difference in reported and core NIMs

As of March 31, 2015

Sizeable Decline in Purchase Accounting

Impact Expected in 2Q15

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.

N/M

As of March 31, 2015

N/M

Core Noninterest Income Down Linked-Quarter;

Investing In Future Growth Initiatives

•

Noninterest income, including securities transactions, totaled

$56.5 million, down $0.4 million linked-quarter

Total includes $0.3 million of securities gains in 1Q15

Amortization of the indemnification asset for FDIC covered loans

totaled $1.2 million, compared to $2.1 million in the fourth

quarter; the amortization is a reduction to noninterest income and

is a result of a lower level of expected future losses on covered

loans (non-core)

Service charges on deposits totaled $17.3 million, down $1.7

million, or 9%, from the fourth quarter

Investment & annuity income and insurance fees totaled $6.8

million, up $0.2 million, or 3%, linked-quarter reflecting

seasonality in this line of business

Trust fees totaled $11.2 million, down $0.4 million from the fourth

quarter reflecting an impact related to the current energy prices

Fees from secondary mortgage operations totaled $2.7 million, up

$0.7 million, or 33%, linked-quarter

Other noninterest income (excluding IA amortization) totaled $8.2

million, down $0.4 million, or 5%, linked-quarter

As of March 31, 2015

Core Noninterest Income Mix 1Q15

•

Operating expense totaled $146.2 million in 1Q15, up $2.1 million linked-quarter

1Q15 operating expense excludes $7.3 million of nonoperating expenses

Personnel expense totaled $80.1 million, an increase of $0.6 million, or less than 1%,

linked-quarter; salary reduction of $2.4 million in the first quarter offset by seasonal

benefits increase of $3.0 million

Occupancy and equipment totaled $15.1 million, up $0.5 million, or 4%, linked-quarter

ORE

expense

totaled

$0.5

million

for

1Q15,

down

$0.5

million,

54%,

linked-quarter

Other operating expense increased $1.7 million, or 4%, linked-quarter

As of March 31, 2015; excluding nonoperating expense items

Continuing To Manage To A Lower

Level Of Operating Expense

Current and Future Revenue Initiatives

Quarter Revenue

Growth Begins

Consumer Lending

•

Enhanced approval process for consumer loans designed to grow

consumer and consumer finance loans through the Bank &

Harrison Finance delivery channels

3Q15

HFC Branch Expansion

•

Opening new Harrison Finance branches to expand consumer

finance coverage in New Orleans & Lake Charles

4Q15

Equipment Finance

•

New equipment finance strategy is gaining immediate

momentum through a mix of leasing & lending on equipment

3Q15

Enhanced Prospecting for

Business Clients

•

Leveraging a new source of prospect information with industry-

leading customer management tools resulting in more business

development opportunities and new clients per banker

4Q15

Loan Pricing Initiative

•

Leveraging market intelligence to stabilize and enhance

commercial loan yields & fees

2Q15

New Business Card Products

•

New credit and payment card products and rewards programs for

businesses further enhances our product offering

3Q15

Deposit Growth Strategy

•

Market-by-market strategy to grow deposits providing dollar for

dollar funding of loan growth

3Q14

Consumer Checking Products

•

The delivery of enhanced products is the first in a series of

initiatives that will deliver a fresh, innovative and competitive

consumer banking proposition to clients

3Q15

As of March 31, 2015

Other Revenue Efforts

•

Strategic change in branch banking focus from

product sales to growth, revenue and

profitability

•

Merchant services technology, product and

sales enhancements to retain and grow clients

•

Deliberate focus on leveraging wealth

management expertise through client

relationship reviews and Private Banking

delivery enhancements

•

New

technology

platform

streamline

commercial

loan

processing

–

enhanced

banker

efficiencies

allows

time

for

business

development

•

Mortgage banking changes expected to result

in increased production, quicker

turnaround/closing times, and improved

customer and realtor satisfaction

As of March 31, 2015

Common Stock Buyback Complete

•

Completed 5% common stock buyback

–

Common

stock

buyback

(approximately

million

shares)

authorized

the

Board

Directors

July

2014

–

Repurchased 2,563,607 shares @ an average price of $29.36 in 1Q15 ($75 million)

–

Total repurchase of 4,093,149 shares @ an average price of $30.02 ($123 million)

•

2013-2014 ASR repurchased 3.4 million shares

•

Since WTNY merger 7.5 million shares have been repurchased at an

average price of

$31.71

•

Repurchased almost 20% of shares issued for WTNY

Solid Capital Levels

•

TCE ratio 8.40%, down 19 bps linked-quarter; 38 bps decrease related to common stock

buyback

•

Basel III requirements effective January 1, 2015 impacted total risk-based capital ratio

approximately 35 bps

•

Issued $150 million of holding company subordinated debt March 9, 2015 at 5.95%

Qualifies as Tier 2 capital

Used

approximately

1/3

for

completion

common

stock

buyback

Remainder to be used for general corporate purposes

•

Will continue to review additional options

to deploy excess capital in the best interest

of the Company and its shareholders

–

Organic growth

–

M&A

–

Stock buyback

–

Dividends

*Stock Buyback (ASR) initiated

As of March 31, 2015

**1Q15

Tier

Risk-Based

Capital

current

period

regulatory

ratios

reflect

estimated

impact

Basel

III

capital

requirements

effective

January

2015.

Near-Term Outlook

1Q15

Items to note

Outlook

Loans

+1% LQA

+11% Y-o-Y

1Q typically seasonal;

Excluding impact of

FDIC Acquired and

energy LQA 3%

5-8% EOP growth for full year

Change from previous guidance reflects paydowns and

headwinds related to the current energy cycle

Purchase Accounting

Adjustments (PAAs)

$7.8 million pre-tax

(see slide 30)

Includes items

impacting revenue and

expense

Sizeable decline in 2Q15 PAA revenue

Gap between operating and core net results eliminated

beginning in 2Q15 (see slide 20)

Net Interest Margin

(NIM)

3.55% reported

3.21% core

Reported

down

8bps;

Core

down

6bps

Downward pressure on reported margin due to

accretion runoff; stabilization of core NIM; increasing

core net interest income

Core Revenue

$203.2 million

Excludes PAAs noted

above

Recent growth reflects initiatives started in the prior

several quarters; expect growth to accelerate in 2H15 as

initiatives continue to mature

Loan Loss Provision

$6.2 million

Includes $3 million of

reserve build mainly

related to energy

Should pricing pressures on oil continue, we could see

some risk rating downgrades and increased provisions;

not expecting significant charge-offs

Noninterest Expense

$146.2 million

operating

$7.3 million of

nonoperating costs

Slightly higher in the near term as investments are made

in revenue-generating initiatives

E.P.S. –

operating

E.P.S. –

core

$.55

$.49

Operating and core

E.P.S. slightly down

due to seasonality and

energy cycle

(calculation on slides

28 and 30)

Expect $.06 decline in 2Q15 E.P.S. due to purchase

accounting; growth from 2Q15 expected in 2H15

As of March 31, 2015

Appendix:

EPS calculation

$s in thousands, except E.P.S.

Three

Months

Ended

3/31/15

Three

Months

Ended

12/31/14

Three

Months

Ended

3/31/14

Operating income to common shareholders

$44,697

$46,376

$49,115

Income allocated to participating securities

($1,040)

($981)

($1,081)

Operating income allocated to common shareholders

$43,657

$45,395

$48,034

Weighted

average

common

–

diluted

79,661

81,530

82,534

E.P.S. -

diluted

$.55

$.56

$.58

See Note 17 in the most recent 10K for more details on the two-class method for E.P.S. calculation.

Appendix: Purchase Accounting Adjustments

Core NII & NIM Reconciliation

($s in millions)

1Q15

4Q14

3Q14

2Q14

1Q14

Net

Interest

Income

(TE)

–

reported

(NII)

$161.1

$163.6

$166.2

$167.3

$168.2

Whitney expected loan accretion (performing)

1.2

2.7

5.0

5.8

6.7

Whitney expected loan accretion (credit impaired)

11.3

13.8

17.0

19.8

20.8

Peoples First expected loan accretion

1.1

2.5

2.1

Excess cash recoveries*

2.8

---

Total Loan Accretion

$16.4

$17.2

$22.8

$28.1

$29.7

Whitney premium bond amortization

(1.0)

(1.2)

(1.3)

(1.4)

(1.5)

Whitney and Peoples First CD accretion

---

Total Net Purchase Accounting

Adjustments (PAAs) impacting NII

$15.3

$16.0

$21.5

$26.7

$28.3

Net

Interest

Income

(TE)

–

core

(Reported NII less net PAAs)

$145.8

$147.6

$144.7

$140.6

$139.9

Average Earning Assets

$18,316

$17,911

$17,324

$16,792

$16,740

Net

Interest

Margin

–

reported

3.55%

3.63%

3.81%

3.99%

4.06%

Net Purchase Accounting Adjustments (%)

.34%

.36%

.49%

.64%

.69%

Net

Interest

Margin

core

3.21%

3.27%

3.32%

3.35%

3.37%

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

Appendix: Non-GAAP Reconciliation

(Net Income, ROA, E.P.S.)

$s in millions

Three

Months

Ended

3/31/15

Three

Months

Ended

12/31/14

Three

Months

Ended

3/31/14

Net income

$40.2

$40.1

$49.1

Adjustments from net to operating income

Securities transactions gains

-0.3

Total nonoperating expense items (pre-tax)

7.3

9.7

Taxes on adjustments at marginal tax rate

2.4

3.4

Total adjustments (net of taxes)

4.5

6.3

Operating income

$44.7

$46.4

$49.1

Adjustments from operating to core income

PAA –

Net Interest Margin (see slide 29)

15.3

16.0

28.3

Intangible Amortization (noninterest expense)

-6.3

-6.4

-6.9

Amortization of Indemnification Asset (noninterest income)

-1.2

-2.1

-3.9

Total Purchase Accounting Adjustments (PAA) (pre-tax)

$7.8

$7.4

$17.5

Taxes on adjustments at marginal tax rate

2.7

2.6

6.1

Total PA adjustments (net of taxes)

5.1

4.8

11.4

Core Income (Operating less purchase accounting items)

$39.6

$41.5

$37.7

Average Assets

$20,444

$20,090

$19,055

ROA (operating)

0.89%

0.92%

1.05%

ROA (core)

0.79%

0.82%

0.80%

Weighted Average Diluted Shares (thousands)

79,661

81,530

82,534

E.P.S. (operating)

$.55

$.56

$.58

E.P.S. (core)

$.49

$.50

$.45

Appendix:

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

$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 3/31/15

$49

$54

Remaining acquired portfolio loan balances at 3/31/15

$94

$725

$819

Acquired loan charge-offs from acquisition thru 3/31/15

$25

$14

$39

Discount at 3/31/15

51.9%

0.7%

6.6%

As of March 31, 2015

Appendix:

Peoples First Loan Mark Used For Charge-Offs

•

FDIC acquired 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 $49.9 million at March 31, 2015

•

Non-single family FDIC loss share agreement expired at December 31, 2014

•

$186

million

remains

covered

under

FDIC

single

family

loss

agreement

$s in millions

Credit Impaired

Peoples First loan mark at acquisition (12/2009)

$509

Charge-offs from acquisition thru 3/31/15

$429

Accretion since acquisition date

$92

Remaining loan mark at 3/31/15

$34

Impairment reserve at 3/31/15

$28

Remaining portfolio loan balances at 3/31/15

$276

Discount & allowance at 3/31/15

22%

As of March 31, 2015

First Quarter 2015

Financial Results

April 23, 2015

First Quarter 2015

Financial Results

April 23, 2015

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HANCOCK WHITNEY CORP Reports