Click To Edit Master Title Style First Quarter 2017 Earnings - - PowerPoint PPT Presentation

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4/19/2017

First Quarter 2017 Earnings Conference Call

2

Important Cautionary Statement About Forward-Looking Statements

This presentation 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. Forward looking statements that we may make include statements regarding balance sheet and revenue growth, the provision for loans losses, loan growth expectations, management’s predictions about charge-offs for loans, including energy-related credits, the impact of changes in oil and gas prices on our energy portfolio, and the downstream impact on businesses that support the energy sector, especially in the Gulf Coast region, the impact of the First NBC transaction on our performance and financial condition, including our ability to successfully integrate the business, 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, and the financial impact of regulatory requirements. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “forecast,” “goals,” “targets,” “initiatives,” “focus,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would,” and “could.” Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events. Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward looking

• statements. Additional factors that could cause actual results to differ materially from those described in the forward-

looking statements can be found in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016 and in other periodic reports that we file with the SEC.

3

Corporate Profile (as of March 31, 2017)

▸ $25.5 billion in Total Assets ▸ $18.2 billion in Total Loans ▸ $19.9 billion in Total Deposits ▸ Tangible Common Equity (TCE) 7.94% ▸ Nearly 200 banking locations and 264 ATMs across our footprint ▸ Approximately 3,900 employees corporate-wide ▸ Rated among the strongest, safest financial institutions in the country by BauerFinancial, Inc. ▸ Earned top customer service marks with Greenwich Excellence Awards ▸ Moody’s long-term issuer rating: Baa3 ▸ S&P long-term issuer rating: BBB

4

($s in millions; except per share data) 1Q17 4Q16 1Q16 Net Income $49.0 $51.8 $3.8 Earnings Per Share – diluted $.57 $.64 $.05 Weighted Average Shares Outstanding (diluted) 84.6 79.1 77.7 Provision for loan losses $16.0 $14.5 $60.0 Return on Assets (%) 0.80 0.88 0.07 Return on Tangible Common Equity (%) 9.92 11.42 0.91 Total Loans (period-end) $18,205 $16,752 $15,978 Total Deposits (period-end) $19,922 $19,424 $18,656 Net Interest Margin (%) 3.37 3.26 3.23 Net Interest Margin (%) (core)* 3.29 3.19 3.12 Net Charge-offs (%) (non-PCI) 0.70 0.50 0.54 Tangible Common Equity (%) 7.94 8.64 7.69 Efficiency Ratio** (%) 61.2 62.8 64.5 Net Purchase Accounting Income (pre-tax)

• $1.2
• $2.2
• $1.1

Nonoperating expense, net (pre-tax) $2.1

• $5.0

Pre-provision net revenue (core)* $93.3 $87.2 $76.4

(compared to fourth quarter 2016)

First Quarter 2017 Highlights

▸ Net income of $49.0 million, down $2.8 million, or 5%; core pre-provision net revenue (PPNR) of $93.3 million, up $6.1 million or 7% ▸ Includes a partial quarter impact from the acquisition of selected assets and liabilities of First NBC Bank (FNBC) of $2.9 million, or $.03 per share, excluding acquisition costs of $6.5 million ▸ Acquired 9 branches from First NBC Bank; operational conversion expected in mid-May 2017 with the simultaneous closure of 10 overlapping branches ▸ Total loans up $1.5 billion; includes $1.2 billion from the FNBC transaction (net of the fair value discount or “loan mark”) ▸ Energy loans comprise 7.1% of total loans, down from 8.4% ▸ Allowance for the energy portfolio totals $83.7 million, or 6.5%

• f energy loans

▸ Total deposits up $498 million; includes $398 million from the FNBC transaction ▸ Purchased $604 million of FHLB advances from FNBC ▸ Net interest margin (NIM) of 3.37% up 11 basis points (bps); core NIM up 10 bps to 3.29% ▸ Tangible common equity (TCE) ratio down 70 bps to 7.94%; reflects partial use of capital raised in December 2016

** Efficiency Ratio is noninterest expense to total net interest (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items. *See slides 24-26 for non-GAAP reconciliations

5

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Actual $60.6 $62.3 $66.8 $69.0 $63.3 $65.4 $70.4 $68.0 $76.4 $85.2 $86.0 $87.2 $93.3

$60.0 $65.0 $70.0 $75.0 $80.0 $85.0 $90.0 $95.0 $100.0

1Q17 vs. 1Q16 growth in core PPNR +22%

+22%

$s in millions

Core pre-provision net revenue (PPNR) continues to grow

See slide 24 for non-GAAP reconciliation

+7%

1Q17 vs. 4Q16 growth in core PPNR +7%

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Well-Diversified Loan Portfolio

C&I $8,074 44% Owner-

• ccupied CRE

$2,047 11% C&D $1,253 7% Income- producing CRE $2,505 14% Mortgage $2,266 13% Consumer $2,059 11%

Total Loans by Type $18,205 3/31/17

East Region (MS AL & FL) $4,209 23% Central Region (SE LA) $3,405 19% West Region (TX & SW LA) $3,036 17% Nashville Healthcare $363 2% FNBC acquired loans $1,186 6% Indirect $499 3% Equipment Finance $459 3% Mortgage $2,266 12% Energy $1,289 7% Other $1,493 8%

Total Loans by Market/LOB $18,205 3/31/17

16,752 18,205 $1,186 $155 $84 $13 $16 $75 $119 $26 $123 $46

$15,000 $15,500 $16,000 $16,500 $17,000 $17,500 $18,000 $18,500 $19,000

4Q16 FNBC acquired loans (net of loan mark) East Region (MS. AL & FL) Central Region (SE LA) West Region (TX & SW LA) Nashville Healthcare Indirect Equipment Finance Mortgage Energy Other 1Q17

Millions

▸ Loans totaled $18.2 billion at quarter-end, an increase of $1.5 billion, or 9%, linked-quarter

• Balance reflects approximately $1.2 billion in loans acquired from First NBC

transaction (net of loan mark)

▸ Net loan growth during the quarter was diversified across the footprint and also in areas identified as part of the company’s revenue-generating initiatives (mortgage, equipment finance) ▸ Reflects $123 million net decrease in energy-related loans

$s in millions

7

Energy Portfolio Overview

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 EOP Loans $11.5 $11.7 $11.7 $12.3 $12.5 $12.9 $13.3 $13.9 $13.9 $14.3 $14.8 $15.7 $16.0 $16.0 $16.1 $16.8 $18.2 Energy (EOP) $0.93 $0.99 $1.12 $1.35 $1.51 $1.59 $1.68 $1.72 $1.67 $1.67 $1.66 $1.58 $1.63 $1.48 $1.40 $1.41 $1.29 Energy as a % of loans 8% 8% 10% 11% 12% 12% 13% 12% 12% 12% 11% 10% 10% 9% 9% 8% 7% $5.0 $7.0 $9.0 $11.0 $13.0 $15.0 $17.0 $19.0

▸ Energy loans totaled $1.3 billion, or 7.1% of total loans, down $123 million linked-quarter and down $344 million from a year ago ▸ Linked-quarter change reflects approximately $160 million in net reductions, plus approximately $23 million in charge-offs, offset by approximately $60 million in net increases

LQA EOP growth

• 3%

7% 2% 20% 7% 11% 14% 16% 1% 12% 12% 25% 7% 1% 1% 17% 35% LQA EOP growth excl energy

• 6%

6%

• 7%

14% 4% 10% 13% 20% 2% 14% 13% 31% 6% 6% 3% 18% 41%

*

*Strategic target

3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 % of total loans 13.0% 12.4% 12.0% 11.6% 11.2% 10.1% 10.2% 9.2% 8.7% 8.4% 7.1%

5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0%

Energy Portfolio as a % of Total Loans

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Energy Portfolio Overview (cont’d)

As of March 31, 2017 ($ in millions) Total Outstanding Total Commitment % Utilization $ Criticized % Criticized $ Nonaccrual % Nonaccrual $ 30-day Past Due* % 30-day Past Due* Upstream $ 425 $ 685 62% $ 243 57% $ 81 19% $ -

• Midstream

$ 81 $ 106 76% $ 31 38% $ -

• $ -
• Support Drilling

$ 166 $ 310 54% $ 101 61% $ 44 27% $ 39 23% Support Nondrilling $ 617 $ 884 70% $ 362 59% $ 23 4% $ 36 6% Total Energy $ 1,289 $ 1,985 65% $ 737 57% $ 148 11% $ 75 6%

▸ Net decrease in outstandings of $123 million linked-quarter and a $115 million decrease in total commitments

• $57 million linked-quarter decrease in upstream outstandings and a $43 million decrease in total commitments
• $4 million linked-quarter increase in midstream sector outstandings and a $5 million increase in total commitments
• $70 million linked-quarter decrease in support sector outstandings and a $77 million reduction in total commitments

▸ Reduction in nonaccrual energy loans of $55 million, or 27%

*Includes accrual and nonaccrual loans

9

Energy Allowance and Category Trends

1Q17 Upstream Midstream Support Drilling Support Nondrilling Total Energy General Reserves $16.6MM $2.7MM $9.3MM $43.3MM $71.9MM Impaired Reserves $4.6MM

• $5.1MM

$2.1MM $11.8MM Total Energy Allowance $21.2MM $2.7MM $14.4MM $45.4MM $83.7MM Loans $425MM $81MM $166MM $617MM $1,289MM Total Energy Allowance (%) 5.0% 3.3% 8.6% 7.4% 6.5% 4Q16 Upstream Midstream Support Drilling Support Nondrilling Total Energy General Reserves $20.4MM $2.2MM $10.0MM $46.7MM $79.4MM Impaired Reserves $0.5MM

• $5.4MM

$21.3MM $27.1MM Total Energy Allowance $20.9MM $2.2MM $15.4MM $68.0MM $106.5MM Loans $482MM $77MM $156MM $697MM $1,412MM Total Energy Allowance (%) 4.3% 2.9% 9.9% 9.8% 7.5%

▸ Management continues to estimate that charge-offs from energy-related credits could approximate $65-$95 million over the duration of the cycle ▸ Charge-offs to-date for current energy cycle (Nov ‘14 – March ‘17) total approximately $65 million; includes $23 million in 1Q17 ▸ Reduction in support nondrilling allowance related to the reduction of $54 million in nondrilling nonaccruals ▸ Reflects expected lag in recovery for support services credits

10

Asset Quality Measures Reflect Impact Of Energy Cycle

▸ NPA ratio 1.79%, down 46 bps linked-quarter ▸ Nonperforming assets totaled $327 million, down $50 million from December 31, 2016

• Nonperforming energy loans totaled $194 million at March 31, 2017, down $45 million from last quarter

▸ Provision for loan losses was $16.0 million, up $1.5 million from 4Q16 ▸ Non-PCI net charge-offs totaled $29.9 million, or 70 bps, up from $20.4 million, or 50 bps, in 4Q16

• Energy charge-offs in the first quarter of 2017 totaled $23 million

▸ Criticized commercial loans totaled $1.2 billion at March 31, 2017, down $79 million from 4Q16

• Criticized energy loans totaled $737 million at March 31, 2017, down approximately $150 million linked-quarter

$411 $418 $625 $806 $761 $1,113 $1,108 $1,256 $1,268 $1,189

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

$s in millions Criticized - nonenergy Criticized - energy

Criticized – nonenergy $334 $323 $343 $338 $309 $352 $310 $363 $379 $452 Criticized - energy $77 $95 $282 $468 $452 $761 $798 $893 $889 $737 Upstream $5 $15 $54 $153 $160 $406 $342 $351 $322 $243 Midstream

• $28

$31 Support nondrilling $54 $63 $128 $184 $161 $235 $332 $416 $441 $362 Support drilling $18 $17 $100 $131 $131 $122 $124 $126 $98 $101

Criticized Loans - Commercial

$89 $98 $126 $173 $164 $283 $302 $311 $358 $310

$0 $50 $100 $150 $200 $250 $300 $350

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

$s in millions

Nonperforming - energy Total Nonperforming

Total HBHC Nonperforming Loans

Nonperforming loans - nonenergy $89 $85 $81 $75 $94 $124 $105 $112 $119 $116 Nonperforming loans – energy

• $13

$45 $98 $70 $159 $197 $199 $239 $194 Upstream

• $10

$10 $11 $11 $92 $79 $52 $79 $81 Midstream

• Support

nondrilling

• $3

$35 $43 $17 $18 $31 $78 $109 $65 Support drilling

• $44

$43 $49 $87 $69 $51 $48

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Adequate Reserve Coverage

▸ The allowance for loan losses (ALLL) was $213.6 million (1.17%) down $16 million from $229.4 million (1.37%) linked-quarter (no ALLL on FNBC portion of the portfolio; FNBC portfolio adjusted for 4% loan mark)

• The allowance maintained on the non-PCI portion of the loan portfolio decreased

approximately $13.5 million linked-quarter, totaling $197.6 million, while the allowance on the FDIC acquired loan portfolio decreased $2.4 million

▸ ALLL for energy credits was $83.7 million, or 6.5%, at March 31, 2017, down $23 million, or approximately 100 bps, from December 31, 2016 ▸ The nonenergy ALLL is approximately $129.9 million, or 0.77%, of the nonenergy loan portfolio as of March 31, 2017, down slightly from December 31, 2016

Q1 2017 Q4 2016 ($ in millions) Nonenergy Energy Total Nonenergy Energy Total General Reserves 109.2 $ 71.9 $ 181.1 $ 102.4 $ 79.4 $ 181.8 $ Impaired Reserves 4.7 $ 11.8 $ 16.5 $ 2.2 $ 27.1 $ 29.3 $ PCI Reserves 16.0 $

• $

16.0 $ 18.4 $

• $

18.4 $ Total Allowance for Credit Loss 129.9 $ 83.7 $ 213.6 $ 122.9 $ 106.5 $ 229.4 $ End-of-Period Loans 16,916 $ 1,289 $ 18,205 $ 15,340 $ 1,412 $ 16,752 $ Coverage Ratio 0.77% 6.5% 1.17% 0.80% 7.5% 1.37% Coverage Ratio excl FNBC 0.83% 6.5% 1.26%

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Securities Portfolio

▸ Portfolio totaled $5.0 billion, down slightly linked-quarter ▸ Yield 2.52%, up 14 bps linked-quarter ▸ Unrealized net loss of $42.8 million on AFS ▸ 50% HTM, 50% AFS ▸ Duration 5.00 years compared to 5.07 years at 12-31-16 ▸ Premium amortization down $0.9 million linked-quarter ▸ 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 52% variable
• 56% of variable loans are LIBOR-based
• 92% of the LIBOR loans are tied to 1mo L
• 7% of the LIBOR loans are tied to 3mo L
• Approximately 1/3 tied to Wall Street Journal Prime
• Modeled lag in deposit rate increases
• Conservative % DDA attrition for certain increases in rates

▸ No energy-related securities in the portfolio

U.S. Agencies and other $130 3% CMO $1,005 20% MBS $2,924 58% Munis $986 19%

Securities Portfolio Mix 3/31/17

2.7% 5.4% 7.5% 9.4% 2.7% 5.1% 6.7% 7.8%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

+100 shock +200 shock +300 shock +400 shock

IRR Scenarios

Year 1 Year 2

13

Solid Levels Of Core Deposit Funding

▸ Total deposits $19.9 billion, up $498 million, or 3% linked-quarter, includes $398 million acquired in the FNBC transaction

• Noninterest-bearing demand deposits (DDA) increased $64 million
• Interest-bearing transaction and savings deposits increased $252

million

• Time deposits increased $150 million
• Public fund deposits increased $32 million
• Funding mix remained strong
• DDA comprised 39% of total period-end deposits
• Cost of funds up 3bps to 37 bps

Time Deposits $2,442 12% Interest- bearing public funds $2,595 13% Noninterest bearing $7,722 39% Interest- bearing transaction & savings $7,163 36%

Total Deposits $19,922 million 3/31/17

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Avg Qtrly Deposits $15.3 $15.1 $15.4 $15.9 $16.5 $16.9 $17.3 $17.8 $18.3 $18.7 $18.7 $18.9 $19.2 LQA EOP growth

• 2%
• 1%

13% 21% 7% 10% 3% 21% 7% 3% 1% 11% 10%

$14.0 $14.5 $15.0 $15.5 $16.0 $16.5 $17.0 $17.5 $18.0 $18.5 $19.0

$s in billions

14

3.23% 3.25% 3.20% 3.26% 3.37% 3.12% 3.15% 3.12% 3.19% 3.29%

$150 $155 $160 $165 $170 $175 $180 $185 $190 2.50% 2.60% 2.70% 2.80% 2.90% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 1Q16 2Q16 3Q16 4Q16 1Q17 Core NII NIM - reported NIM - core

Core NIM Expansion

4.02% 4.03% 3.99% 3.99% 4.16% 2.36% 2.38% 2.34% 2.38% 2.52% 0.34% 0.35% 0.35% 0.34% 0.37%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 1Q16 2Q16 3Q16 4Q16 1Q17 Loan Yield - reported Securities Yield - reported Cost of Funds - reported See slide 26 for non-GAAP reconciliation

▸ Reported net interest margin (NIM) 3.37%, up 11 bps linked-quarter ▸ Core NIM of 3.29% increased 10 bps linked-quarter ▸ Improved mix of earning assets; increased volume ▸ Core loan yield +16 bps

• Mainly related to FNBC acquired loans at 5%+

▸ Yield on bond portfolio +14 bps

• Mainly related to slow down in prepayments on mortgage backed

securities and decrease in premium amortization

▸ Cost of funds +3 bps

• Reflects addition of FNBC deposits at approximately 1%

15

Focus On Growing Core Noninterest Income Across Business Lines

Service Charges

• n Deposit

$19.2 30% Investment & annuity $4.6 7% Trust $11.2 17% Insurance $0.7 1% Bankcard & ATM $12.5 19% Secondary mortgage $3.6 6% Gain on sale of selected funds $4.4 7% Other (excl IA amort) $8.4 13%

Noninterest Income Mix 1Q17

$67.1 $64.6 $0.5 $0.2 $0.2 $0.6 $0.7 $0.3 $4.4 $3.3 $3.0 $0.1 $60 $62 $64 $66 $68 $70 $72

4Q16 Noninterest Income (excluding IA) Service Charges on Deposit Accounts Bankcard & ATM Fees Investment & Annuity Income and Insurance Trust Fees Secondary Mortgage Fees Securities Transactions Gain on sale

• f selected

Hancock Horizon funds Gain on Sale

• f Property

Derivative Income Other 1Q17 Noninterest Income (excluding IA)

Millions

▸ Noninterest income, including securities transactions, totaled $63.5 million, down $2.4 million, or 4%, linked-quarter ▸ Amortization of the indemnification asset for FDIC covered loans totaled $1.1 million, down from $1.2 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 ▸ Nonoperating items for the first quarter of 2017 includes a $4.4 million gain on sale of selected Hancock Horizon funds ▸ Excluding the items noted above, noninterest income totaled $60.2 million, down $6.9 million, or 10%, linked-quarter

$s in millions

16

Remain Focused On Expense Control

Personnel $89.0 57% Occupancy $10.8 7% Equipment $3.7 2% Other $48.9 31% Amortization

• f intangibles

$4.7 3%

Operating Expense Mix 1Q17 $156.3 $163.5 $0.6 $6.5 $1.5 $0.5 $0.1 $0.6 $150 $152 $154 $156 $158 $160 $162 $164 $166

4Q16 Noninterest Expense Personnel Occupancy & Equipment ORE Expense Acquisition Expenses Amortization of Intangibles Other Operating Expense 1Q17 Noninterest Expense

Millions

▸ Noninterest expenses totaled $163.5 million in 1Q17, up $7.3 million, or 5%, linked quarter; includes $6.5 million of acquisition costs ▸ Noninterest expense excluding acquisition costs (operating expense) totaled $157.1 million, up $0.8 million or less than 1% ▸ Personnel expense totaled $89.0 million, up $1.5 million, or 2%, linked-quarter ▸ Occupancy and equipment totaled $14.5 million, up $0.5 million, or 4% linked-quarter ▸ Net gains on ORE dispositions exceeded ORE expense by $13 thousand compared to $0.6 million of net expense in 4Q16; management does not expect this level of ORE expense to be sustainable in future quarters ▸ Other operating expense (excluding ORE) totaled $48.9 million in the first quarter of 2017, down $0.5 million, or 1%, from the fourth quarter of 2016

$s in millions

17

▸ TCE ratio 7.94%, down 70 bps linked-quarter

• Tangible asset growth (including FNBC

asset acquisition) -48 bps

• Intangibles -43 bps
• Tangible net retained earnings +14 bps
• OCI +1 bp
• Option exercises +6 bps

▸ Will continue to manage capital in the best interests of the Company and our shareholders

Managing Our Capital…

5% 10% 15% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17e

Capital Ratios

TCE Tier 1 Risk-Based Capital Total Risk-Based Capital

Tangible Common Equity Ratio Leverage (Tier 1) Ratio Tier 1 Risked- Based Capital Ratio Total Risk-Based Capital Ratio March 31, 2017 7.94% 8.79%(e) 10.24%(e) 12.00%(e) December 31, 2016 8.64% 9.56% 11.26% 13.21% September 30, 2016 7.93% 8.35% 10.09% 12.15% June 30, 2016 7.81% 8.22% 9.94% 11.96% March 31, 2016 7.69% 8.14% 9.69% 11.75%

(e) estimated

18

…With Financially Compelling Return on Investment

▸ Signed an agreement on December 30, 2016 to purchase certain assets and liabilities, including 9 branches, from First NBC Bank; the transaction closed on March 10, 2017 ▸ Transaction was between Hancock Holding Company’s banking subsidiary Whitney Bank (“Whitney”) and First NBC Bank Holding Company’s banking subsidiary First NBC Bank (“First NBC”) ▸ Purchased select loans, 9 First NBC branches, including associated transaction and savings deposits and PP&E, and FHLB borrowings:

• Approximately $1.2 billion diversified and performing loan portfolio with a 5.28% average yield
• 9 branches in the Greater New Orleans region, including 7 in the New Orleans MSA
• Consolidating 10 overlapping branches
• Approximately $400 million in deposits at average cost of 0.95%
• Approximately $600 million in FHLB borrowings at average cost of 1.11%

▸ Paid a premium of just under $42 million to First NBC

• Transferred approximately $320 million in cash
• Premium is related to the earnings stream acquired

19

FNBC -- Compelling Financial Impact

At Acquisition; $s in billions First NBC Transaction Total Loans $1.2* Intangibles $0.1 Total Assets $1.3* Total Deposits $0.4 Other Liabilities $0.6

▸ Conservative level of initial loan and deposit run-off, no accretion, provision expense, additional operating expenses were included in modeling projections ▸ Current run-rate reflects better than expected level of earnings

• Includes impact of accretion
• No provision for loan losses

▸ Operational conversion scheduled for mid-May 2017

• Simultaneously consolidating 10 overlapping

branches

▸ Expect operating income in 2Q17 from FNBC transaction to approximate $9-$11 million, or $.10-$.12 per share

* Net of $53 million loan mark ** Includes $1.3 million of loan accretion

1Q17 impact (partial quarter); $s in millions except E.P.S. First NBC Transaction Net interest income $5.1** Noninterest income n/m Operating expense $0.6 Operating income $2.9 Operating E.P.S. $.03 Acquisition costs (nonoperating) $6.5

20

Near-Term Outlook

1Q17 Actual Items to note Outlook Loans +35% LQA +14% Y-o-Y Includes approximately $1.2 billion in FNBC loans net of 4% loan mark Expect net growth of $250-$300 million in 2Q17; includes normal level of payoffs and paydowns on both energy and FNBC loans however paydowns on energy loans remain unpredictable Net Interest Margin (NIM) 3.37% reported 3.29% core Reported up 11bps; Core up 10bps Absent additional rate hikes, expect core NIM to expand 5-7 bps in 2Q17; includes full quarter impact of both March rate hike and FNBC transaction Core Revenue $245.7 million Excludes purchase accounting adjustments (PAAs) and nonoperating items Growth in spread items expected to be partially offset by flat to lower levels on noninterest income Loan Loss Provision $16.0 million $14-$16 million for 2Q17 Noninterest Expense $163.5 million Includes $6.5 million in acquisition costs Expect increase of $3-$4 million in 2Q17 from annual employee raises and higher level of FNBC branch costs (prior to operational conversion and closing of

• verlapping locations); excludes nonoperating items

Tax Rate 25% Management expects an effective tax rate in the range

• f 25-27% for the remainder of 2017, excluding any

changes in the tax code

See slides 24-26 for non-GAAP reconciliations

21

2017 Strategic Objectives (includes FNBC)

▸ Loan growth 15-17% (EOP)

• Includes $1.2B of loans acquired from FNBC in 1Q17 (net of loan mark)
• Fund loan growth primarily with deposits

▸ Revenue growth 11-13% (includes only the March 2017 interest rate hike for 2017) ▸ Expense growth 4-5% ▸ Core PPNR growth 20-22% ▸ PLLL $50-$65mm

2017/18 Corporate Strategic Objectives (CSOs)

In line with top quartile peers for mid-cap group Earnings (EPS)/quarter $0.70 - $0.80 ROA 1.00% - 1.10% ROE 11% - 13% TCE 8%+ Efficiency Ratio 59% - 61%

22

Appendix/Non-GAAP Reconciliations

23

Appendix: EPS Calculation

$s in thousands, except EPS Three Months Ended 3/31/17 Three Months Ended 12/31/16 Three Months Ended 3/31/16 Twelve Months Ended 12/31/16 Twelve Months Ended 12/31/15 Net income $49,014 $51,831 $3,839 $149,296 $131,461 Income allocated to participating securities (1,156) (1,263) (97) (3,598) (2,895) Net income allocated to common shareholders $47,858 $50,568 $3,742 145,698 128,566 Weighted average common shares – diluted 84,624 79,067 77,672 77,949 78,307 EPS - diluted $.57 $.64 $.05 $1.87 $1.64

See Note 13 in the most recent 10K for more details on the two-class method for E.P.S. calculation.

24

Appendix: Core PPNR Reconciliation

$s in millions Three Months Ended 3/31/17 Three Months Ended 12/31/16 Three Months Ended 3/31/16 Twelve Months Ended 12/31/16 Twelve Months Ended 12/31/15 Net interest income $181.7 $167.8 $162.8 $659.1 $625.2 Noninterest income 63.5 65.9 58.2 250.8 237.3 Noninterest expense (163.5) (156.3) (156.0) (612.3) (619.7) Pre-provision net revenue $81.7 $77.4 $65.0 $297.6 $242.8 Tax-equivalent (TE) adjustment 8.3 7.5 5.3 25.8 13.6 Nonoperating items, net 2.1

• 5.0

5.0 15.9 Purchase accounting adjustments 1.2 2.2 1.1 6.4 (5.2) Core pre-provision net revenue $93.3 $87.2 $76.4 $334.8 $267.1

25

Appendix: Core Revenue Reconciliation

$s in millions Three Months Ended 3/31/17 Three Months Ended 12/31/16 Three Months Ended 3/31/16 Twelve Months Ended 12/31/16 Twelve Months Ended 12/31/15 Net interest income $181.7 $167.8 $162.8 $659.1 $625.2 Noninterest income 63.5 65.9 58.2 250.8 237.3 Tax-equivalent (TE) adjustment 8.3 7.5 5.3 25.8 13.6 Total Revenue $253.5 $241.2 $226.3 $935.7 $876.1 Nonoperating Revenue (4.4)

• Amortization of FDIC loss share

receivable 1.1 1.2 1.6 5.9 5.8 Total Net Purchase Accounting Adjustments (PAAs) impacting NII (4.6) (3.8) (5.6) (19.2) (35.1) Core Revenue $245.7 $238.7 $222.3 $922.4 $846.8

26

Appendix: Purchase Accounting Adjustments Core NII & NIM Reconciliation

($s in millions) 1Q17 4Q16 3Q16 2Q16 1Q16 Net Interest Income (TE) – reported (NII) $190.0 $175.3 $170.3 $171.2 $168.2 Whitney loan accretion 3.0 3.4 4.4 4.8 5.2 Peoples First loan accretion 0.8 0.9 0.8 1.1 1.2 FNBC loan accretion 1.3

• Total Loan Accretion

$5.0 $4.3 $5.2 $5.9 $6.4 Whitney premium bond amortization (0.4) (0.5) (0.6) (0.6) (0.7) Total Net Purchase Accounting Adjustments (PAAs) impacting NII $4.6 $3.8 $4.6 $5.2 $5.6 Net Interest Income (TE) – core (Reported NII less net PAAs) $185.4 $171.5 $165.7 $165.9 $162.5 Average Earning Assets $22,770 $21,462 $21,197 $21,147 $20,911 Net Interest Margin – reported 3.37% 3.26% 3.20% 3.25% 3.23% Net Purchase Accounting Adjustments (%) .08% .07% .08% .10% .11% Net Interest Margin - core 3.29% 3.19% 3.12% 3.15% 3.12%

27

Appendix: Core Revenue

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Actual 154.3 153.0 148.7 147.3 139.7 139.1 138.5 139.9 139.9 140.6 144.7 147.6 145.8 147.2 153.8 157.0 162.5 165.9 165.7 171.5 185.4

135.0 145.0 155.0 165.0 175.0 185.0 195.0

Millions

Net Interest Income TE (core)

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Actual 58.5 62.2 63.6 64.9 60.1 64.0 63.6 60.6 60.6 59.7 60.7 59.1 57.7 62.1 61.8 61.4 59.8 65.2 64.5 67.1 60.2

56.0 58.0 60.0 62.0 64.0 66.0 68.0

Millions

Noninterest Income (core)

28 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

Mortgage

Revenue Generating Initiatives - Fees

15,000 15,500 16,000 16,500 17,000 17,500 18,000

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

Wealth (Trust, Investment & Annuity)*

10,500 10,750 11,000 11,250 11,500 11,750 12,000 12,250 12,500

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

Card Fees (ATM, Credit, Debit, Merchant)

$s in thousands

*Includes Hancock Horizon Funds sale

29

Appendix: Operating Expense (excl nonoperating items)

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Actual 171.6 168.1 164.4 157.9 159.6 162.3 161.3 157.1 147.0 144.7 145.2 144.1 146.2 150.0 151.2 156.0 151.1 150.9 149.1 156.3 157.1

140.0 145.0 150.0 155.0 160.0 165.0 170.0 175.0

Millions

30

Appendix: Historical Energy Data

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Nondrilling 663 672 658 682 650 682 671 691 697 617 Drilling 310 270 280 269 258 244 220 172 156 166 Midstream 102 109 104 103 105 108 88 79 77 81 Upstream 648 623 627 607 566 599 502 458 482 425 % of total loans 12.4% 12.0% 11.6% 11.2% 10.1% 10.2% 9.2% 8.7% 8.4% 7.1%

6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0%

$0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750

Upstream Midstream Drilling Nondrilling % of total loans

$s in millions

Energy Outstandings by Type

$1,724 $1,674 $1,669 $1,660 $1,580 $1,633 $1,289 $1,400 $1,412 $1,481

31

Appendix: Energy Portfolio Support Services

Contract drillers $61 37% Rental tools $55 33% Completion services $30 18% Other $20 12%

Support Drilling Subcategories $166 million 3/31/17

Helicopter Transport $72 12% Marine Transport $286 46% Fabrication, construction, installation $115 18% Other $78 13% Supply/ manufacturing $66 11%

Support Nondrilling Subcategories $617 million 3/31/17

32

Impact of Purchase Accounting Adjustments

(projections will be updated quarterly; subject to change)

Appendix: Purchase Accounting Impact/Trend

2012 2013 2014 2015 2016 2017 2018 Revenue impact* $124 $132 $80 $29 $13 $23 $19 Pre-tax impact PAA $93 $103 $54 $5 $(6) $4 $3

$0 $25 $50 $75 $100 $125 $150

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 PAA Revenue - act* 37 33 35 27 24 23 19 14 14 6 5 4 4 4 3 3 4 PAA Revenue - proj* 4 7 6 6 Intangible Amort 7 7 7 7 7 7 7 6 6 6 6 6 5 5 5 5 5 5 5 4 Pre-tax impact 30 25 28 20 17 17 12 7 8

• 1
• 2
• 1
• 1
• 2
• 3
• 1

2 1 2

$0 $5 $10 $15 $20 $25 $30 $35 $40

*Projected revenue includes loan accretion from Whitney, Peoples First and FNBC, offset by amortization of the Whitney bond portfolio premium and amortization of the Peoples First indemnification asset. $s in millions

33

Appendix: Glossary of Terms

̶ Loan Mark – Fair value discount on loans acquired in a business combination ̶ LPO – Loan production office ̶ LQA – Linked-quarter annualized ̶ M&A – Mergers and acquisitions ̶ NII – Net interest income ̶ NIM – Net interest margin ̶ NPA – Nonperforming assets ̶ O&G – Oil and gas ̶ ORE – Other real estate ̶ PAA – Purchase accounting adjustments from business combinations; including loan accretion, offset by any amortization of a bond portfolio premium, amortization of an indemnification asset and amortization of intangibles ̶ PCI – Purchased credit impaired ̶ PPNR – Pre-provision net revenue ̶ RBL – Reserve-based lending ̶ ROA – Return on average assets ̶ RR – Risk rating ̶ SNC – Shared National Credit ̶ TCE – Tangible common equity ratio (common shareholders’ equity less intangible assets divided by total assets less intangible assets) ̶ TDR – Troubled Debt Restructuring ̶ TE – Taxable equivalent (calculated using a federal income tax rate of 35%) ̶ Y-o-Y – Year over year ̶ 1Q17 – First Quarter of 2017 ̶ 4Q16 – Fourth Quarter of 2016 ̶ AFS – Available for sale ̶ ALLL – Allowance for loan and lease losses ̶ Annualized – Calculated to reflect a rate based on a full year ̶ Core – Excluding purchase accounting items and nonoperating items ̶ Core Loan Yield – Interest income (TE) on loans excluding purchase accounting loan income, annualized, divided by average loans ̶ Core NIM – Reported net interest income (TE) excluding total net purchase accounting adjustments, annualized, as a percent of average earning assets ̶ Core Revenue – Net interest income (TE) plus noninterest income excluding purchase accounting adjustments for both categories ̶ Current Energy Cycle – Refers to the energy cycle beginning in November of 2014 through the most recent quarter end ̶ DDA – Noninterest-bearing demands deposit accounts ̶ E&P – Exploration and Production (Oil & Gas) ̶ Efficiency ratio – noninterest expense to total net interest (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items. ̶ EOP – End of period ̶ EPS – Earnings per share ̶ HTM – Held to maturity ̶ IRR – Interest rate risk ̶ Linked-quarter – current quarter compared to previous quarter

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4/19/2017

First Quarter 2017 Earnings Conference Call