Click To Edit Master Title Style Fourth Quarter 2016 Earnings Conference Call 1/18/2017
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, 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, possible repurchases of shares under stock buyback programs, 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, 2015 and in other periodic reports that we file with the SEC. 2
Corporate Profile (as of December 31, 2016) ▸ $24.0 billion in Total Assets ▸ $16.8 billion in Total Loans ▸ $19.4 billion in Total Deposits ▸ Tangible Common Equity (TCE) 8.64% ▸ Nearly 200 banking locations and 267 ATMs across our footprint ▸ Approximately 3,800 employees corporate-wide ▸ Rated among the strongest, safest financial institutions in the country by BauerFinancial, Inc. ▸ Earned top customer service marks with Greenwich Excellence Awards ▸ Moody’s long-term issuer rating: Baa3 ▸ S&P long-term issuer rating: BBB 3
YTD 2016 Highlights (compared to YTD 2015) Fav/(unfav) ($s in millions; except per share data) 2016 2015 ▸ Net Income and earnings per share both increased 14% year-over-year 14% Net Income $149.3 $131.5 14% Earnings Per Share – diluted $1.87 $1.64 ▸ Increase in provision for loan losses related to Provision for loan losses $110.7 $73.0 (52%) current energy cycle Return on Assets (%) 0.64 0.62 2bps ▸ Core pre-tax pre-provision income of $334.8 Return on Tangible Common Equity (%) 8.56 7.72 84bps million, up $67.7 million, or 25% Total Loans (period-end) $16,752 $15,703 7% ▸ Total loans up $1.0 billion, or 7% Total Deposits (period-end) $19,424 $18,349 6% ▸ Net interest margin of 3.23% down 10 basis Net Interest Margin (%) 3.23 3.33 (10bps) points (bps); core net interest margin stable Net Interest Margin (%) (core)* 3.14 3.14 -- ▸ Net Charge-offs (%) (non-PCI) 0.37 0.11 (26bps) Tangible common equity (TCE) ratio up 102 bps to 8.64%; reflects capital raise of $259 Tangible Common Equity (%) 8.64 7.62 102bps million on December 16, 2016 Efficiency Ratio** (%) 62.8 66.1 335bps ▸ Efficiency ratio** improved to 62.8% Net Purchase Accounting Income (pre-tax) -$6.4 $5.2 NA Pre-tax pre-provision income (core)* $334.8 $267.1 25% *See slides 31-33 for non-GAAP reconciliations ** Efficiency Ratio is noninterest expense to total net interest (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating expense. 4
Fourth Quarter 2016 Highlights (compared to third quarter 2016) 4Q15 ($s in millions; except per share data) 4Q16 3Q16 ▸ Earnings up approximately 11% • Revenue up 3% $15.3 Net Income $51.8 $46.7 • Noninterest income up almost 5% $.19 Earnings Per Share – diluted $.64 $.59 • Loan loss provision decreased 24% to $14.5 million, compared Provision for loan losses $14.5 $19.0 $50.2 to $19.0 million Return on Assets (%) 0.88 0.80 0.27 ▸ Core pre-tax pre-provision income of $87.2 million, up $1.1 million or 1% Return on Tangible Common Equity (%) 11.42 10.58 3.53 ▸ Total Loans (period-end) $16,752 $16,071 $15,703 Total loans up $681 million, or 17% linked-quarter annualized (LQA) Total Deposits (period-end) $19,424 $18,885 $18,349 ▸ Energy loans comprise 8.4% of total loans, Net Interest Margin (%) 3.26 3.20 3.21 down from 8.7% Net Interest Margin (%) (core)* 3.19 3.12 3.10 ▸ Allowance for the energy portfolio totals $106.5 million, or 7.5% Net Charge-offs (%) (non-PCI) 0.50 0.24 0.21 of energy loans Tangible Common Equity (%) 8.64 7.93 7.62 ▸ Net interest margin of 3.26% up 6 basis points (bps); core net interest margin up 7 bps to 3.19% Efficiency Ratio** (%) 62.8 61.8 67.6 ▸ Tangible common equity (TCE) ratio up 71 bps to 8.64%; reflects capital raise of $259 million on December Net Purchase Accounting Income (pre-tax) -$2.2 -$1.8 -$1.7 16, 2016 Pre-tax pre-provision income (core)* $87.2 $86.0 $68.0 ▸ Signed an agreement to purchase certain assets and liabilities, including 9 branches, from First NBC Bank; the transaction is expected to close in the first quarter of 2017 *See slides 31-33 for non-GAAP reconciliations ** Efficiency Ratio is noninterest expense to total net interest (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating expense. 5
Beat core pre-tax pre-provision Income Goal for 2016 by $11 million; Up 25% vs. 2015 Year-over-year growth in core PTPP income +25% 4Q16 v 4Q15 growth in core PTPP income +28% $350.0 $90.0 +25% $300.0 $85.0 $250.0 $80.0 $200.0 +28% $75.0 $150.0 $70.0 $100.0 $65.0 $50.0 $0.0 $60.0 2014 2015 2016 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 YTD Actual $258.7 $267.1 $334.8 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 2016 Goal $323.4 $s in millions See slide 31 for non-GAAP reconciliation 6
Well-Diversified Loan Portfolio Total Loans by Type $16,752 12/31/16 Consumer ▸ $2,060 Loans totaled $16.8 billion at quarter-end, an increase of $681 12% million linked-quarter or 17% LQA C&I Mortgage $7,614 $2,147 ▸ 46% Net loan growth during the quarter was diversified across the 13% footprint and also in areas identified as part of the company’s revenue-generating initiatives ▸ Reflects $12 million net increase in energy-related loans; energy Income- growth reflects stabilization in oil prices which has provided new producing CRE $2,014 12% opportunities to add credits that fit the strategic profile for this C&D line of business $1,011 6% Owner-occupied CRE $1,907 11% Total Loans by Market/LOB $16,800 $16,752 $9 $12 $110 12/31/16 $16,700 Other $104 $1,539 East Region (MS 9% AL & FL) $16,600 Energy $64 $32 $4,054 $1,412 24% $184 8% $16,500 Millions $16,400 16,752 Mortgage $149 $2,147 $16,300 13% Equipment $16,200 Finance $81 $384 2% $16,100 Indirect 16,071 $525 $16,000 Central Region 3% 3Q16 East Region Central West Region Nashville Indirect Equipment Mortgage Energy Other 4Q16 (SE LA) (MS. AL & Region (SE (TX & SW Healthcare Finance $3,321 Nashville West Region (TX FL) LA) LA) 20% Healthcare & SW LA) $347 $3,023 2% 19% $s in millions 7
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