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

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7/19/2017

Second 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 transactions 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 June 30, 2017)

▸ $26.6 billion in Total Assets ▸ $18.5 billion in Total Loans ▸ $21.4 billion in Total Deposits ▸ Tangible Common Equity (TCE) 7.65% ▸ Nearly 200 banking locations and 262 ATMs across our footprint ▸ Approximately 4,200 employees corporate-wide ▸ Rated among the strongest, safest financial institutions in the country by BauerFinancial,

• Inc. for 111 consecutive quarters

▸ 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) 2Q17 1Q17 2Q16 Net Income $52.3 $49.0 $46.9 Earnings Per Share – diluted $.60 $.57 $.59 Weighted Average Shares Outstanding (diluted) 84.9 84.6 77.7 Nonoperating Items (pre-tax)* $10.6 $2.1

• Provision for loan losses

$15.0 $16.0 $17.2 Return on Assets (%) (ROA) 0.79 0.80 0.82 ROA (%) excluding nonoperating items* 0.89 0.83 0.82 Return on Tangible Common Equity (%) (ROTCE) 10.69 9.92 11.04 ROTCE (%) excluding nonoperating items* 12.11 10.20 11.04 Total Loans (period-end) $18,474 $18,205 $16,036 Total Deposits (period-end) $21,443 $19,922 $18,817 Net Interest Margin (%) 3.43 3.37 3.25 Net Charge-offs (%) (non-PCI) 0.13 0.70 0.20 Tangible Common Equity (%) 7.65 7.94 7.81 Efficiency Ratio** (%) 60.6 61.2 62.1 Net Purchase Accounting Income (pre-tax) $1.3

• $1.2
• $1.3

Pre-provision net revenue (TE)* $92.3 $89.9 $84.0 Pre-provision net revenue (core)* $101.6 $93.3 $85.2

(compared to first quarter 2017)

Second Quarter 2017 Highlights

▸ Includes a full quarter impact from the FNBC I transaction (March 10, 2017) and a partial quarter’s impact from the FNBC II transaction (April 28, 2017)

(see slides 24 and 25 for specifics on each transaction)

▸ Reached an agreement with the FDIC to terminate the 2009 loss share agreements for the Peoples First acquisition; expenses include a $6.6 million ($.05 per share) write-down of the indemnification asset ▸ Reported earnings increased $3.3 million, or 7% ▸ Loans increased $269 million and deposits increased $1.5 billion linked-quarter ▸ Acquired approximately $1.6 billion of deposits and approximately $160 million in loans in the FNBC II transaction ▸ Energy loans declined $59 million and comprise 6.7% of total loans, down from 7.1%; allowance for the energy portfolio totals $83.4 million, or 6.8% of energy loans ▸ Core pre-provision net revenue (PPNR) of $101.6 million, up $8.3 million or 9% ▸ Net interest margin (NIM) of 3.43% up 6 basis points (bps) ▸ Tangible common equity (TCE) ratio down 29 bps to 7.65%, mainly related to growth in assets and the addition

• f $44 million of intangible assets related to the FNBC II

transaction

** Efficiency Ratio is noninterest expense to total net interest (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items. *See slides 26-29 for non-GAAP reconciliations

5

$0.60 $0.69 $0.049 $0.030 $0.050 $0.016 $0.007 $0.005 $0.007 $0.007 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $1.10 $1.20

2Q17 Reported EPS Termination of FDIC Loss Share Agreement FNBC Merger Costs FNBC Non- permanent Expenses Tax Benefit (incentive stock award vesting) Addt'l Derivative Income Addt'l SBIC Income Co-Arranger Fee ORE Gains Exceeding Expense 2Q17 EPS Excluding Nonoperating and Unusual Items (Non-GAAP)

Second Quarter EPS Highlights

(includes a non-GAAP measure)

Potentially Unsustainable Items $3.7 million pre-tax NonOperating/One-Time $10.6 million pre-tax Seasonal $1.4 million Nonpermanent $6.7 million pre-tax

Ongoing FNBC

• perations

expected to cease in 2H17 (ie., branch closures) Related to incentive stock awards vesting (typically 1Q/4Q)

Assumes a 35% tax rate

6

Termination of Loss Share Agreements

▸ In December 2009 the company acquired Peoples First Community Bank in Panama City, FL under loss-sharing agreements with the FDIC ▸ The non-single family portion of the agreement expired after 5 years and the single family portion would have expired after 10 years ▸ Hancock reached an agreement with the FDIC to terminate the remaining portion of the loss share agreements (impact reflected in second quarter 2017) ▸ In the second quarter of 2017 the company wrote down the indemnification asset (IA) by $6.6 million to $3.2 million ▸ Quarterly amortization of IA (contra to fee income) will be eliminated beginning in the third quarter of 2017; IA amortization was $1.3 million in the second quarter of 2017 ▸ The remaining loan balances covered under the agreement totaled $154 million at June 30, 2017, with a reserve totaling $15 million ▸ The termination agreement states that the FDIC will no longer share in any losses or recoveries for the loans assumed in the original transaction

7

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Actual $63.3 $65.4 $70.4 $68.0 $76.4 $85.2 $86.0 $87.2 $93.3 $101.6

$60.0 $65.0 $70.0 $75.0 $80.0 $85.0 $90.0 $95.0 $100.0 $105.0

2Q17 vs. 2Q16 growth in core PPNR +19%

+19%

$s in millions

Core Pre-Provision Net Revenue (PPNR) Continues to Grow

See slide 27 for non-GAAP reconciliation

+9%

2Q17 vs. 1Q17 growth in core PPNR +9%

8

Well-Diversified Loan Portfolio

C&I $8,093 44% Owner-

• ccupied CRE

$2,078 11% C&D $1,314 7% Income- producing CRE $2,402 13% Mortgage $2,494 14% Consumer $2,093 11%

Total Loans by Type $18,474 6/30/17

East Region (MS AL & FL) $4,247 23% Central Region (SE LA) $4,501 24% West Region (TX & SW LA) $3,224 17% Nashville Healthcare $355 2% Indirect $480 3% Equipment Finance $504 3% Mortgage $2,494 13% Energy $1,232 7% Other $1,437 8%

Total Loans by Market/LOB $18,474 6/30/17

18,205 18,474 $39 $105 $45 $228 $7 $8 $18 $59 $56

$17,500 $17,700 $17,900 $18,100 $18,300 $18,500 $18,700 $18,900

1Q17 East Region (MS. AL & FL) Central Region (SE LA) West Region (TX & SW LA) Nashville Healthcare Indirect Equipment Finance Mortgage (incl FNBC II) Energy Other 2Q17

Millions

▸ Loans totaled $18.5 billion at quarter-end, an increase of $269 million, or 1.5%, linked-quarter ▸ 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 $59 million net decrease in energy-related loans ▸ Includes approximately $160 million of mainly performing single family residential mortgages from the FNBC II transaction

$s in millions

9

Energy Portfolio Overview

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 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 $18.5 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 $1.23 Energy as a % of loans 8% 8% 10% 11% 12% 12% 13% 12% 12% 12% 11% 10% 10% 9% 9% 8% 7% 7% $5.0 $7.0 $9.0 $11.0 $13.0 $15.0 $17.0 $19.0

$s in billions

▸ Energy loans totaled $1.2 billion, or 6.7% of total loans, down $59 million linked-quarter and down $250 million from a year ago ▸ Linked-quarter change reflects $134 million in net reductions, offset by $75 million in net increases

LQA EOP growth

• 3%

7% 2% 20% 7% 11% 14% 16% 1% 12% 12% 25% 7% 1% 1% 17% 35% 6% LQA EOP growth excl energy

• 6%

6%

• 7%

14% 4% 10% 13% 20% 2% 14% 13% 31% 6% 6% 3% 18% 41% 8%

*

*Strategic target

3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 % 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% 6.7%

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

10

Energy Portfolio Overview (cont’d)

As of June 30, 2017 ($ in millions) Total Outstanding Total Commitment % Utilization $ Criticized % Criticized $ Nonaccrual

(excludes TDRs)

% Nonaccrual

(excludes TDRs)

$ 30-day Past Due* % 30-day Past Due* Upstream $ 400 $ 698 57% $ 227 57% $ 56 14% $ -

• Midstream

$ 66 $ 92 72% $ 11 17% $ -

• $ -
• Support Drilling

$ 160 $ 300 53% $ 95 59% $ 38 24% $ 34 21% Support Nondrilling $ 604 $ 850 71% $ 354 59% $ 27 4% $ 40 7% Downstream $ 1 $ 33 3% $ -

• $ -
• $ -
• Total Energy

$ 1,232 $ 1,973 62% $ 687 56% $ 121 10% $ 74 6% ▸ Net decrease in outstandings of $59 million linked-quarter and a $12 million decrease in total commitments

• $25 million linked-quarter decrease in upstream outstandings and a $13 million increase in total commitments
• $15 million linked-quarter decrease in midstream sector outstandings and a $14 million decrease in total commitments
• $19 million linked-quarter decrease in support sector outstandings and a $44 million reduction in total commitments
• $33 million linked-quarter increase in downstream sector total commitments

▸ Reduction in nonaccrual energy loans of $27 million, or 18% ▸ Increase in accruing energy TDRs of $45 million linked-quarter

*Includes accrual and nonaccrual loans

11

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% 2Q17 Upstream Midstream Support Drilling Support Nondrilling Total Energy General Reserves $13.9MM $1.3MM $6.4MM $41.6MM $63.1MM Impaired Reserves $7.7MM

• $5.3MM

$7.2MM $20.3MM Total Energy Allowance $21.6MM $1.3MM $11.7MM $48.8MM $83.4MM Loans $400MM $66MM $160MM $604MM $1,232MM Total Energy Allowance (%) 5.4% 2.0% 7.3% 8.1% 6.8%

▸ 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 $65 million; no energy charge-offs in 2Q17 ▸ Reflects continued expectation of a lag in recovery for support services credits

12

Asset Quality Measures Reflect Impact Of Energy Cycle

▸ NPA ratio 1.88%, up 9 bps linked-quarter ▸ Nonperforming assets totaled $347 million, up $19.7 million from March 31, 2017

• Nonperforming energy loans totaled $208 million at June 30, 2017, up $14 million from last quarter

▸ Provision for loan losses was $15.0 million, down $1 million from 1Q17 ▸ Non-PCI net charge-offs totaled $6.0 million, or 13 bps, down from $29.9 million, or 70 bps, in 1Q17 ▸ Criticized commercial loans totaled $1.2 billion at June 30, 2017, down $36 million from 1Q17

• Criticized energy loans totaled $687 million at June 30, 2017, down $50 million linked-quarter

$411 $418 $625 $806 $761 $1,113 $1,108 $1,256 $1,268 $1,189 $1,153

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

$s in millions Criticized - nonenergy Criticized - energy

Criticized – nonenergy $334 $323 $343 $338 $309 $352 $310 $363 $379 $452 $466 Criticized - energy $77 $95 $282 $468 $452 $761 $798 $893 $889 $737 $687 Upstream $5 $15 $54 $153 $160 $406 $342 $351 $322 $243 $227 Midstream

• $28

$31 $11 Support nondrilling $54 $63 $128 $184 $161 $235 $332 $416 $441 $362 $354 Support drilling $18 $17 $100 $131 $131 $122 $124 $126 $98 $101 $95

Criticized Loans - Commercial

$89 $98 $126 $173 $164 $283 $302 $311 $358 $310 $329

$0 $50 $100 $150 $200 $250 $300 $350 $400

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

$s in millions

Nonperforming - energy Total Nonperforming

Total HBHC Nonperforming Loans (nonaccrual loans + TDRs)

Nonperforming loans - nonenergy $89 $85 $81 $75 $94 $124 $105 $112 $119 $116 $121 Nonperforming loans – energy

• $13

$45 $98 $70 $159 $197 $199 $239 $194 $208 Upstream

• $10

$10 $11 $11 $92 $79 $52 $79 $81 $56 Midstream

• Support

nondrilling

• $3

$35 $43 $17 $18 $31 $78 $109 $65 $77 Support drilling

• $44

$43 $49 $87 $69 $51 $48 $75

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Adequate Reserve Coverage

▸ The allowance for loan losses (ALLL) was $221.9 million (1.20%) up $8 million from $213.6 million (1.17%) linked-quarter

• No ALLL on FNBC portion of the portfolio; FNBC portfolios adjusted for the loan marks
• The allowance maintained on the non-PCI portion of the loan portfolio increased $9.2

million linked-quarter, totaling $206.7 million, while the allowance on the FDIC acquired loan portfolio decreased $0.9 million

▸ ALLL for energy credits was $83.4 million, or 6.8%, at June 30, 2017, compared to $83.7 million, or 6.5% at March 31, 2017 ▸ The nonenergy ALLL is $138.5 million, or 0.80%, of the nonenergy loan portfolio as of June 30, 2017, up slightly from March 31, 2017

Q2 2017 Q1 2017 ($ in millions) Nonenergy Energy Total Nonenergy Energy Total General Reserves 118.9 $ 63.1 $ 182.0 $ 109.2 $ 71.9 $ 181.1 $ Impaired Reserves 4.4 $ 20.3 $ 24.7 $ 4.7 $ 11.8 $ 16.5 $ PCI Reserves 15.1 $

• $

15.1 $ 16.0 $

• $

16.0 $ Total Allowance for Credit Loss 138.5 $ 83.4 $ 221.9 $ 129.9 $ 83.7 $ 213.6 $ End-of-Period Loans 17,242 $ 1,232 $ 18,474 $ 16,916 $ 1,289 $ 18,205 $ Coverage Ratio 0.80% 6.8% 1.20% 0.77% 6.5% 1.17% Coverage Ratio excl FNBC 0.87% 6.8% 1.29% 0.83% 6.5% 1.26%

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Securities Portfolio

▸ Portfolio totaled $5.7 billion, up $668 million, or 13%, linked-quarter

• Reinvested approximately $220 million in acquired FNBC II securities portfolio,

and invested a portion of the excess liquidity from the transaction, towards the end of the second quarter

▸ Yield 2.52%, unchanged linked-quarter ▸ Unrealized net loss of $30.4 million on AFS ▸ 50% HTM, 50% AFS ▸ Duration 4.84 years compared to 5.00 years at 3-31-17 ▸ Premium amortization up $0.3 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
• 93% 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 $129 2% CMO $1,406 25% MBS $3,182 56% Munis $981 17%

Securities Portfolio Mix 6/30/17

2.9% 5.1% 6.9% 8.3% 3.6% 5.9% 7.6% 8.5%

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

15

Solid Levels Of Core Deposit Funding

▸ Total deposits $21.4 billion, up $1.5 billion, or 8% linked- quarter; the increase is mainly related to the deposits acquired in the FNBC II transaction

• Noninterest-bearing demand deposits (DDA) increased $166 million
• Interest-bearing transaction and savings deposits increased $1.2 billion
• Time deposits increased $174 million
• Public fund deposits decreased $58 million
• Funding mix remained strong
• DDA comprised 37% of total period-end deposits
• Cost of funds up 7 bps to 44 bps

Time Deposits $2,616 12% Interest- bearing public funds $2,537 12% Noninterest bearing $7,888 37% Interest- bearing transaction & savings $8,402 39%

Total Deposits $21,443 million 6/30/17

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 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 $20.9 LQA EOP growth

• 2%
• 1%

13% 21% 7% 10% 3% 21% 7% 3% 1% 11% 10% 31%

$14.0 $15.0 $16.0 $17.0 $18.0 $19.0 $20.0 $21.0 $22.0

$s in billions

16

3.25% 3.20% 3.26% 3.37% 3.43%

$100 $150 $200 $250 2.50% 2.70% 2.90% 3.10% 3.30% 3.50% 3.70% 2Q16 3Q16 4Q16 1Q17 2Q17 NII (TE) NIM - reported

Continued NIM Expansion

4.03% 3.99% 3.99% 4.16% 4.36% 2.38% 2.34% 2.38% 2.52% 2.52% 0.35% 0.35% 0.34% 0.37% 0.44% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2Q16 3Q16 4Q16 1Q17 2Q17 Loan Yield - reported Securities Yield - reported Cost of Funds - reported

▸ Reported net interest margin (NIM) 3.43%, up 6 bps linked-quarter ▸ Loan yield +20 bps

• Reflects full quarter impact from FNBC I loan portfolio and full quarter impact of March rate increase

▸ Yield on bond portfolio unchanged

• Reinvested approximately $220 million of FNBC II securities portfolio and

invested a portion of the excess liquidity from FNBC II transaction during the second quarter; expect full quarter impact in the third quarter of 2017

▸ Cost of funds +7 bps

• Reflects addition of approximately $1.6 billion in FNBC II deposits

at just under 1%

• During the quarter the company used excess liquidity from the FNBC II

transaction to pay down approximately $800 million of FHLB debt

17

Focus On Growing Core Noninterest Income Across Business Lines

Service Charges

• n Deposit

$20.1 29% Investment & annuity $5.3 8% Trust $11.5 17% Insurance $1.2 2% Bankcard & ATM $13.7 20% Secondary mortgage $4.2 6% Other (excl IA amort) $12.8 18%

Noninterest Income Mix 2Q17

$64.6 $68.8 $0.9 $1.2 $1.2 $0.3 $0.7 $2.2 $1.0 $0.7 $4.0 $60 $62 $64 $66 $68 $70 $72 $74

1Q17 Noninterest Income (excluding IA) Service Charges on Deposit Accounts Bankcard & ATM Fees Investment & Annuity Income and Insurance Trust Fees Secondary Mortgage Fees Derivative Fees Co-Arranger Fee Additional SBIC Income Other 2Q17 Noninterest Income (excluding IA) $s in millions

▸ Noninterest income, including securities transactions, totaled $67.5 million, up $4.0 million, or 6%, linked-quarter ▸ Amortization of the indemnification asset for FDIC covered loans totaled $1.3 million, compared to $1.1 million in the first quarter; the amortization is a reduction to noninterest income and is a result of a lower level of expected future losses on covered loans

• This item will be eliminated beginning in the third quarter of 2017 as a result of the termination of the

company’s loss share agreement with the FDIC

▸ The first quarter of 2017 included a $4.4 million gain on sale of selected Hancock Horizon Funds ▸ Excluding the items noted above, noninterest income totaled $68.8 million, up $8.6 million, or 14%, linked-quarter

$4.4MM Gain on sale of selected Hancock Horizon funds in 1Q17

$s in millions

18

Remain Focused On Expense Control

Personnel $96.2 55% Occupancy $13.0 8% Equipment $3.8 2% Other $55.1 32% Amortization of intangibles $5.8 3%

Operating Expense Mix 2Q17 $157.1 $172.9 $6.7 $4.6 $1.0 $3.5 $120 $130 $140 $150 $160 $170 $180 $190 $200

1Q17 Operating Expense FNBC Non-permanent Expenses FNBC Permanent Expenses Annual merit increases Other Operating Expense 2Q17 Operating Expense $s in millions

▸ Noninterest expenses totaled $183.5 million in 2Q17, up $19.9 million, or 12%, linked quarter; includes $10.6 million of nonoperating expenses (termination of loss share agreement and merger costs) ▸ Operating expense (noninterest expense excluding nonoperating items) totaled $172.9 million, up $15.8 million or 10%

• Personnel expense totaled $96.2 million, up $7.2 million, or 8%, linked-quarter, mainly up due to annual merit increase, higher

incentive payments and additional personnel hired from the FNBC transactions

• Occupancy and equipment totaled $16.8 million, up $2.3 million, or 16% linked-quarter related to operating the newer branches

acquired in the FNBC I transaction

• Amortization of intangibles totaled $5.8 million for the second quarter of 2017, up $1.1 million or 22% linked-quarter.
• Net gains on ORE dispositions exceeded ORE expense by $1.0 million compared to $13 thousand in 1Q17; management does

not expect this level of ORE expense to be sustainable in future quarters

• Other operating expense (excluding ORE) totaled $55.1 million in the second quarter of 2017, up $6.2 million, or 13%, from the

first quarter of 2017; increase is partly related to the permanent expenses associated with the FNBC transactions

$s in millions

19

▸ TCE ratio 7.65%, down 29 bps linked-quarter

• Tangible asset growth -35 bps
• Intangibles -18 bps
• Tangible net retained earnings +16 bps
• OCI +6 bps
• Stock issuance & other +2 bps

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

Managing Our Capital…

5% 10% 15% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17e

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 June 30, 2017 7.65% 8.21%(e) 9.98%(e) 11.73%(e) March 31, 2017 7.94% 8.79% 10.16% 11.91% 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%

(e) estimated

20

▸ Acquired approximately $2.6 billion in assets and liabilities in two transactions related to FNBC for $77 million transaction premium ▸ In-market, low-risk transactions ▸ Consolidated 10 overlapping branches in FNBC I ▸ Closing 25 of 29 overlapping branches in FNBC II ▸ Expect significant consolidation of the acquired back office and branches in FNBC II ▸ Funding loans from FNBC I with deposits from FNBC II ▸ Expect 2018 annual E.P.S. to approximate $.56 per share (for FNBC I & II combined)

…With Financially Compelling Investments

$s in billions Part I (FNBC) Part II (FDIC) Total acquired Loans $1.3 $0.2 $1.5 Securities

• $0.2

$0.2 Intangibles $0.1 $0.04 $0.14 Other Assets ($0.3)

(includes net cash paid to FNBC by Whitney)

$1.2

(includes net cash received by Whitney)

$0.9 Total Assets $1.0 $1.6 $2.6 Total Deposits $0.4 $1.6 $1.9 Other borrowings $0.6

• $0.7

Other liabilities & equity

• Total Liabilities &

equity $1.0 $1.6 $2.6 $s in millions Part I (FNBC) Part II (FDIC) Total Transaction Premium $42 $35 $77 Loan Mark $53 $5 $58 CDI $4 $20 $24 Goodwill $96 $24 $120

See slides 24 and 25 for information on FNBC I & II

21

Near-Term Outlook

2Q17 Actual Items to note Outlook Loans Up $269 million or 6% LQA Up $2.4 billion or 15% Y-o-Y Includes approximately $160 million in FNBC II loans net of the loan mark in 2Q17 and $1.2 billion in FNBC loans in 1Q17 Expect net growth of $400-$500 million in 2H17; includes normal level of payoffs and paydowns on both energy and FNBC loans however paydowns on energy loans remain unpredictable Net Interest Margin (NIM) 3.43% up 6bps Absent additional rate hikes, expect NIM to expand 3-5 bps in 2H17 Revenue $275.8 million Growth in spread items expected to be supplemented by modest growth in noninterest income (level will depend on potentially unsustainable items) Loan Loss Provision $15.0 million $14-16 million per quarter for 2H17 Noninterest Expense excluding nonoperating items (operating expense) $172.9 million Nonoperating items totaled $10.6 million related to FNBC merger costs and termination of loss share agreement Expect operating expense to decline $3-5 million in 3Q17 and expect an additional decline of $1-2 million in 4Q17as nonpermanent FNBC expenses are eliminated Tax Rate 24% Rate was lower due to the new accounting treatment for stock compensation (includes special grant vestings in May 2017) Management expects an effective tax rate in the range of 25-26% for the third quarter of 2017 and 21-22% in the fourth quarter of 2017

22

Long-Term Outlook

▸ Working to achieve objectives no later than 4Q18, if not sooner ▸ FNBC I & II help increase the potential for early achievement of long-term objectives

Earnings (EPS)/quarter (excluding nonoperating items) $0.70 - $0.80+ ROA (operating) 1.00% - 1.10%+ ROE (operating) 11% - 13% TCE 8%+ Efficiency Ratio 59% - 61%

2017/18 Corporate Strategic Objectives (CSOs)

Efficiency Ratio is noninterest expense to total net interest (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items.

23

Appendix/Non-GAAP Reconciliations

24

FNBC I (Transaction with FNBC) Summary

▸ Signed an agreement on December 30, 2016 to purchase certain assets and liabilities, including 9 branches, from FNBC; the transaction closed on March 10, 2017 ▸ Purchased select loans, 9 FNBC 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
• Consolidated 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 FNBC

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

25

FNBC II (FDIC transaction) Summary

▸ On April 28, 2017 the Louisiana Office of Financial Institutions (OFI) closed First NBC Bank and appointed the FDIC as receiver ▸ Whitney Bank signed an agreement with the FDIC to acquire/assume certain assets and liabilities of First NBC Bank

• Approximately $1.6 billion in deposits at average cost of 0.92%
• Approximately $160 million performing loan portfolio (mainly single-family residential mortgages) with a 4.50% average yield
• Approximately $220 million in securities at average yield of 2.20%
• Approximately $550 million cash and other assets

▸ Whitney Bank had the option to purchase (or assume the leases for) 29 branch locations (24 in Louisiana and 5 in Florida); consolidating 25 overlapping branches ▸ Neither Hancock Holding Company nor Whitney Bank acquired any assets, common stock, preferred stock or debt, or assumed any other obligations, of First NBC Bank Holding Company ▸ Paid a premium of $35 million to the FDIC

• Received approximately $655 million in cash for the net liabilities assumed

▸ CDs not assumed by Whitney are being paid out in full with interest by the FDIC

26

Appendix: EPS Calculation and Non-GAAP Reconciliations

$s in thousands, except EPS Three Months Ended 6/30/17 Three Months Ended 3/31/17 Three Months Ended 6/30/16 Six Months Ended 6/30/17 Six Months Ended 6/30/16 Net income $52,267 $49,014 $46,907 $101,281 $50,746 Income allocated to participating securities (1,166) (1,156) (1,136) (2,322) (1,233) Net income allocated to common shareholders $51,101 $47,858 $45,771 98,959 49,513 Weighted average common shares – diluted 84,867 84,624 77,680 84,755 77,676 EPS - diluted $.60 $.57 $.59 $1.17 $0.64

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

Non-GAAP Reconciliations $s in millions Three Months Ended 6/30/17 Three Months Ended 3/31/17 Three Months Ended 6/30/16 Net Income

$52.3 $49.0 $46.9

Nonoperating items, adjusted for taxes at 35% 6.9 1.4

• Net income excluding nonoperating items

$59.2 $50.4 $46.9 Average Assets $26,526 $24,757 $23,139 Average TCE (common shareholders’ equity less goodwill

and other intangible assets)

$1,960 $2,003 $1,709 ROA excluding nonoperating items (%) 0.89 0.83 0.82 ROTCE excluding nonoperating items (%)

12.11 10.20 11.04

27

Appendix: Core PPNR Reconciliation

$s in millions Three Months Ended 6/30/17 Three Months Ended 3/31/17 Three Months Ended 6/30/16 Six Months Ended 06/30/17 Six Months Ended 06/30/16 Net interest income $199.7 $181.7 $165.0 $381.4 $327.8 Noninterest income 67.5 63.5 63.7 131.0 121.9 Noninterest expense (183.5) (163.5) (150.9) (347.0) (307.0) Pre-provision net revenue $83.7 $81.7 $77.8 $165.4 $142.7 Tax-equivalent (TE) adjustment 8.6 8.3 6.2 16.9 11.5 Pre-provision net revenue (TE) $92.3 $89.9 $84.0 $182.3 $154.2 Nonoperating items, net 10.6 2.1

• 12.7

5.0 Purchase accounting adjustments (see below) (1.3) 1.2 1.3 (0.1) 2.4 Core pre-provision net revenue $101.6 $93.3 $85.2 $194.9 $161.6

Purchase Accounting Adjustments $s in millions Three Months Ended 6/30/17 Three Months Ended 3/31/17 Three Months Ended 6/30/16 Six Months Ended 06/30/17 Six Months Ended 06/30/16 Loan accretion (Whitney, Peoples First, FNBC) see slide 29 $8.8 $5.0 $5.9 $13.8 $12.3 Premium bond amortization (Whitney) (0.4) (0.4) (0.6) (0.8) (1.3) Amortization of the indemnification asset (1.3) (1.1) (1.6) (2.4) (3.2) Amortization of intangibles (5.8) (4.7) (5.0) (10.5) (10.2) Total Purchase Accounting Adjustments, net $1.3 ($1.2) ($1.3) $0.1 ($2.4)

28

Appendix: Core Revenue Reconciliation

$s in millions Three Months Ended 6/30/17 Three Months Ended 3/31/17 Three Months Ended 6/30/16 Six Months Ended 06/30/17 Six Months Ended 06/30/16 Net interest income $199.7 $181.7 $165.0 $381.4 $327.8 Noninterest income 67.5 63.5 63.7 131.0 121.9 Tax-equivalent (TE) adjustment 8.6 8.3 6.2 16.9 11.5 Total Revenue $275.8 $253.5 $234.9 $529.3 $461.2 Nonoperating Revenue

• (4.4)
• (4.4)
• Amortization of FDIC loss share

receivable 1.3 1.1 1.5 2.4 3.1 Total Net Purchase Accounting Adjustments (PAAs) impacting NII (8.4) (4.6) (5.2) (13) (10.9) Core Revenue $268.7 $245.7 $231.1 $514.4 $453.5

29

Appendix: Purchase Accounting Adjustments Core NII & NIM Reconciliation

($s in millions) 2Q17 1Q17 4Q16 3Q16 2Q16 Net Interest Income (TE) – reported (NII) $208.3 $190.0 $175.3 $170.3 $171.2 Whitney loan accretion 2.9 3.0 3.4 4.4 4.8 Peoples First loan accretion 0.4 0.8 0.9 0.8 1.1 FNBC loan accretion 5.5 1.3

• Total Loan Accretion

$8.8 $5.0 $4.3 $5.2 $5.9 Whitney premium bond amortization (0.4) (0.4) (0.5) (0.6) (0.6) Total Net Purchase Accounting Adjustments (PAAs) impacting NII $8.4 $4.6 $3.8 $4.6 $5.2 Net Interest Income (TE) – core (Reported NII less net PAAs) $199.9 $185.4 $171.5 $165.7 $165.9 Average Earning Assets $24,338 $22,770 $21,462 $21,197 $21,147 Net Interest Margin – reported 3.43% 3.37% 3.26% 3.20% 3.25% Net Purchase Accounting Adjustments (%) .14% .08% .07% .08% .10% Net Interest Margin - core 3.29% 3.29% 3.19% 3.12% 3.15%

30

Appendix: Core Revenue

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Actual 154.3 153.0 148.7 147.3 139.7 139.1 138.5 139.9 139.9 140.6 144.7 147.6 145.8 147.2 153.8 157.0 162.5 165.9 165.7 171.5 185.4 199.9

135.0 145.0 155.0 165.0 175.0 185.0 195.0 205.0

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 2Q17 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 68.8

56.0 58.0 60.0 62.0 64.0 66.0 68.0 70.0

Millions

Noninterest Income (core)

31 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 2Q17

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 2Q17

Wealth (Trust, Investment & Annuity)

10,500 11,000 11,500 12,000 12,500 13,000 13,500 14,000

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

Card Fees (ATM, Credit, Debit, Merchant)

$s in thousands

32

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 2Q17 Actual 171.6 168.1 164.4 157.9 159.6 162.3 161.3 157.1 147.0 144.7 145.2 144.1 146.2 150.0 151.2 156.0 151.1 150.9 149.1 156.3 157.1 172.9

140.0 145.0 150.0 155.0 160.0 165.0 170.0 175.0

Millions

33

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Nondrilling 663 672 658 682 650 682 671 691 697 617 604 Drilling 310 270 280 269 258 244 220 172 156 166 160 Midstream 102 109 104 103 105 108 88 79 77 81 66 Upstream 648 623 627 607 566 599 502 458 482 425 400 % of total loans 12.4% 12.0% 11.6% 11.2% 10.1% 10.2% 9.2% 8.7% 8.4% 7.1% 6.7%

6.00% 7.00% 8.00% 9.00% 10.00% 11.00% 12.00% 13.00% 14.00%

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

Upstream Midstream Drilling Nondrilling % of total loans

Appendix: Historical Energy Data

$s in millions

Energy Outstandings by Type

$1,724 $1,674 $1,669 $1,660 $1,580 $1,633 $1,231 $1,400 $1,412 $1,481 $1,289

34

Appendix: Energy Portfolio Support Services

Contract drillers $65 41% Rental tools $47 29% Completion services $28 17% Other $20 13%

Support Drilling Subcategories $160 million 6/30/17

Helicopter Transport $74 12% Marine Transport $280 46% Fabrication, construction, installation $99 17% Other $85 14% Supply/ manufacturing $66 11%

Support Nondrilling Subcategories $604 million 6/30/17

35

Appendix: Glossary of Terms

̶ Linked-quarter – current quarter compared to previous quarter ̶ 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 ̶ Operating – Net income excluding nonoperating items ̶ 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 ̶ SBIC – Small Business Investment Company ̶ 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 ̶ 2H17 – Second Half of 2017 (3rd and 4th quarters) ̶ 2Q17 – Second Quarter of 2017 ̶ 3Q17 – Third Quarter of 2017 ̶ 4Q17 – Fourth Quarter of 2017 ̶ 4Q18 – Fourth Quarter of 2018 ̶ AFS – Available for sale securities ̶ ALLL – Allowance for loan and lease losses ̶ Annualized – Calculated to reflect a rate based on a full year ̶ CDI – Core Deposit Intangible ̶ Core – Excluding purchase accounting items and nonoperating items ̶ 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 ̶ FNBC I – Acquired selected assets & liabilities from FNBC (see slide 24) ̶ FNBC II – Acquired selected assets & liabilities of FNBC from FDIC (see slide 25) ̶ HTM – Held to maturity securities ̶ IRR – Interest rate risk

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7/19/2017

Second Quarter 2017 Earnings Conference Call