HBHC Hancock Holding Company (delisted)

Hancock Holding Company (Nasdaq:HBHC) today announced its financial results for the second quarter of 2017. Net income for the second quarter of 2017 was $52.3 million, or $.60 per diluted common share (EPS), compared to $49.0 million, or $.57 EPS in the first quarter of 2017 and $46.9 million, or $.59 EPS, in the second quarter of 2016. The second quarter of 2017 includes nonoperating expenses related to the FNBC I and II transactions of approximately $4.0 million ($.03 per share impact), and a $6.6 million ($.05 per share) expense related to the termination of Hancock’s loss share agreements with the FDIC for its Peoples First acquisition in December 2009. The first quarter of 2017 included $2.1 million of nonoperating items ($.01 per share) and there were no nonoperating items in the second quarter of 2016. The company expects to have additional nonoperating items related to the FNBC II transaction in the third quarter of 2017.

Highlights of the company’s second quarter 2017 results (compared to first quarter 2017):

• 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 press releases on respective dates 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 of $44 million of intangible assets related to the FNBC II transaction

“I am extremely pleased to report continued progress for our company,” said President and CEO John M. Hairston. “Core fundamentals of our business are becoming more evident. Reported and core earnings are improved, the balance sheet is stronger, margin and fee income continues to improve and asset quality is stable during a period of modest economic growth. Expenses are elevated as we work through the remaining conversion of FNBC, but we expect recurring expenses to decrease through 3Q17 and normalize in 4Q17. Over the first half of 2017 we acquired approximately $2.6 billion in assets and liabilities in two unrelated transactions (FNBC I and II). These in-market, low-risk transactions positively impacted our franchise from day one and we expect to generate additional value as we move into the second half of 2017.”

Loans Total loans at June 30, 2017 were $18.5 billion, up approximately $269 million, or 1.5%, linked-quarter. The increase includes approximately $160 million from the FNBC II transaction (net of the loan mark). Loans to energy-related companies decreased $59 million during the second quarter. There was growth throughout the markets across our footprint and in our mortgage and equipment finance lines of business.

During the quarter the company reached an agreement with the FDIC to terminate the remaining portion of its 2009 loss share agreements. In the second quarter of 2017 the company wrote down the indemnification asset by $6.6 million to $3.2 million. The remaining loan balances covered under the agreement totaled $154 million at June 30, 2017, with a reserve totaling $15 million.

Average loans totaled $18.4 billion for the second quarter of 2017, up $1.1 billion, or 6%, linked-quarter.

EnergyAt June 30, 2017, loans to the energy industry totaled $1.2 billion, or 6.7% of total loans. As noted earlier, the energy portfolio was down $59 million, or 5% linked-quarter, and is comprised of credits to both the exploration and production (E&P) sector and the support and services sectors. Payoffs and paydowns of approximately $134 million were partially offset by approximately $75 million in draws on existing lines of credit.

The impact and severity of future risk rating migration, as well as any associated provisions or net charge-offs, will depend on overall oil prices and the duration of the energy cycle that began in November 2014. As previously noted, management still expects a continued lag in the recovery of energy service and support credits. Reserve-based lending credits are showing signs of improvement given the stabilization in oil prices, and we expect improvement in land-based services and non-drilling services in the Gulf of Mexico to follow.

Management continues to estimate that charge-offs from energy-related credits could approximate an aggregate of $65-$95 million over the duration of the cycle, of which approximately $65 million has been taken to-date (there were no energy charge-offs in the second quarter of 2017). While we expect additional charge-offs in the portfolio, we continue to believe the impact of the energy cycle on our loan portfolio will be manageable, our reserve is adequate and our capital will remain solid.

Deposits Total deposits at June 30, 2017 were $21.4 billion, up $1.5 billion, or 8%, from March 31, 2017. Average deposits for the second quarter of 2017 were $20.9 billion, up $1.7 billion, or 9%, linked-quarter. Both increases are related to the deposits acquired in the FNBC II transaction.

Noninterest-bearing demand deposits (DDAs) totaled $7.9 billion at June 30, 2017, up $166 million, or 2%, from March 31, 2017. DDAs comprised 37% of total period-end deposits at June 30, 2017.

Interest-bearing transaction and savings deposits totaled $8.4 billion at the end of the second quarter of 2017, up $1.2 billion, or 17%, from March 31, 2017. The increase is mainly related to the deposits acquired in the FNBC II transaction. Time deposits of $2.6 billion were up $174 million, or 7%, while interest-bearing public fund deposits decreased $58 million, or 2%, to $2.5 billion at June 30, 2017.

Asset QualityNonperforming assets (NPAs) totaled $347 million at June 30, 2017, up $20 million from March 31, 2017. During the second quarter of 2017, total nonperforming loans increased approximately $19 million, while foreclosed and surplus real estate (ORE) and other foreclosed assets increased approximately $1 million. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 1.88% at June 30, 2017, up 9 bps from March 31, 2017.

The total allowance for loan losses (ALLL) was $221.9 million at June 30, 2017, up $8.3 million from March 31, 2017. The ratio of the allowance for loan losses to period-end loans was 1.20% at June 30, 2017, up from 1.17% at March 31, 2017. There is no allowance for loan losses on the loans purchased in FNBC I or FNBC II; however, a $58 million loan mark was applied to those loans at acquisition. The allowance for credits in the energy portfolio totaled $83.4 million, or 6.8% of energy loans, at June 30, 2017, down from $83.7 million, or 6.5% of energy loans, at March 31, 2017.

Net charge-offs from the non-purchased credit impaired (PCI) loan portfolio were $6.0 million, or 0.13% of average total loans on an annualized basis in the second quarter of 2017, down from $29.9 million, or 0.70% of average total loans in the first quarter of 2017. There were no charge-offs related to energy credits in the second quarter of 2017; energy charge-offs were approximately $23.0 million in the first quarter of 2017.

During the second quarter of 2017, Hancock recorded a total provision for loan losses of $15.0 million, down slightly from $16.0 million in the first quarter of 2017.

Net Interest Income and Net Interest Margin Net interest income (TE) for the second quarter of 2017 was $208.3 million, up $18 million from the first quarter of 2017. The increase mainly reflects a full quarter impact from the FNBC I loan portfolio as well as a full quarter impact from the March 2017 Fed rate increase. Partially offsetting that was the addition of $1.6 billion in FNBC II deposits at a cost of just under 1%. During the second quarter the company began deploying the $1.2 billion of excess liquidity received in the FNBC II transaction and also reinvested FNBC’s securities portfolio. Approximately one-third of the excess liquidity was invested in the bond portfolio while the remainder was used to pay down FHLB debt.

Average earning assets were $24.3 billion for the second quarter of 2017, up $1.6 billion, or 7%, from the first quarter of 2017. The reported net interest margin (TE) was 3.43% for the second quarter of 2017, up 6 bps from the first quarter of 2017.

Noninterest IncomeNoninterest income totaled $67.5 million for the second quarter of 2017, up $4.0 million, or 6%, from the first quarter of 2017. Included in the total is amortization of $1.3 million related to the FDIC indemnification asset, compared to from $1.1 million in the first quarter of 2017. (As a result of the termination of the loss share agreements, amortization will be eliminated beginning in the third quarter of 2017.) Nonoperating income for the first quarter of 2017 included a $4.4 million gain on sale of selected Hancock Horizon Funds. Excluding the impact of these items, noninterest income totaled $68.8 million, up $8.6 million, or 14%, linked-quarter.

Service charges on deposits totaled $20.1 million for the second quarter of 2017, up $0.9 million, or 4%, from the first quarter of 2017. Bank card and ATM fees totaled $13.7 million, up $1.2 million, or 10%, from the first quarter of 2017.

Trust fees totaled $11.5 million, up $0.3 million, or 3% linked-quarter. Investment and annuity income and insurance fees totaled $6.4 million, up $1.2 million, or 22% linked-quarter.

Fees from secondary mortgage operations totaled $4.2 million for the second quarter of 2017, up $0.7 million, or 19% linked-quarter.

Other noninterest income (excluding the amortization of the FDIC indemnification asset) totaled $12.8 million, up $4.4 million, or 51%, from the first quarter of 2017. The increase is mainly related to additional derivative income, SBIC income and a co-arranger fee on a new credit, all of which totaled $4.0 million.

Noninterest Expense & Taxes Noninterest expense for the second quarter of 2017 totaled $183.5 million, up $19.9 million, or 12%, from the first quarter of 2017. Included in the total is $10.6 million of expenses related to the termination of the loss share agreements and costs associated with the FNBC transactions. Excluding these items, operating expense totaled $172.9 million, up $15.8 million, or 10%, linked-quarter. The discussion below excludes these items.

Total personnel expense was $96.2 million in the second quarter of 2017, up $7.2 million, or 8%, from the first quarter of 2017.The increase is related to annual merit increase, higher incentive payments and additional personnel hired from the FNBC transactions.

Occupancy and equipment expense totaled $16.8 million in the second quarter of 2017, up $2.3 million, or 16%, from the first quarter of 2017.

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

The effective income tax rate for the second quarter of 2017 was 24%. The rate was at the lower end of the guidance range mainly due to the change in accounting treatment for stock compensation and the vesting of awards. The effective income tax rate continues to be less than the statutory rate of 35% due primarily to tax-exempt income and tax credits.

CapitalCommon shareholders’ equity at June 30, 2017 totaled $2.8 billion. The tangible common equity (TCE) ratio was 7.65%, down 29 bps from March 31, 2017. The decrease mainly reflects the growth in assets and addition of intangible assets from the FNBC II transaction. Additional capital ratios are included in the financial tables.

Conference Call and Slide PresentationManagement will host a conference call for analysts and investors at 9:00 a.m. Central Time on Wednesday, July 19, 2017 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.hancockwhitney.com/investors. A link to the release with additional financial tables, and a link to a slide presentation related to second 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 July 26, 2017 by dialing (855) 859-2056 or (404) 537-3406, passcode 47600033.

About Hancock Holding CompanyHancock Holding Company is a financial services company with regional business headquarters and locations across the Gulf South. The company’s banking subsidiary provides comprehensive financial products and services through Hancock Bank locations in Mississippi, Alabama, and Florida and Whitney Bank locations in Louisiana and Texas, including traditional, online, and mobile banking; commercial and small business banking; private banking; trust and investment services; certain insurance services; and mortgage services. More information is available at www.hancockwhitney.com.

Non-GAAP Financial MeasuresThis news release includes non-GAAP financial measures to describe Hancock’s performance. The reconciliations of those measures to GAAP measures are provided within Appendix A on page 17 of the additional financial tables.

In this news release, consistent with Securities and Exchange Commission Industry Guide 3, the company presents net interest income, net interest margin and efficiency ratios on a fully taxable equivalent (“TE”) basis. The TE basis adjusts for the tax-favored status of net interest income from certain loans and investments using a federal tax rate of 35% to increase tax-exempt interest income to a taxable-equivalent basis. The company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

Over the past several quarters we have disclosed our focus on strategic initiatives that were designed to replace declining levels of purchase accounting income from acquisitions with improvement in core income, which the company defines as income excluding net purchase accounting income. The company presents core income non-GAAP measures including core net interest income and core net interest margin, core revenue and core pre-provision net revenue. These measures are provided to assist the reader with a better understanding of the company’s performance period over period as well as providing investors with assistance in understanding the success management has experienced in executing its strategic initiatives.

We define Core Net Interest Income as net interest income (TE) excluding net purchase accounting accretion resulting from the fair market value adjustments related to acquired operations. We define Core Net Interest Margin as reported core net interest income expressed as a percentage of average earning assets. A reconciliation of reported net interest income to core net interest income and reported net interest margin to core net interest margin is included in Appendix A.

We define Core Revenue as core net interest income and noninterest income less the amortization of the FDIC loss share receivable related to loans acquired in an FDIC assisted transaction and other nonoperating revenue. A reconciliation of total revenue to core revenue is included in Appendix A.

We define Core Pre-Provision Net Revenue as core revenue less noninterest expense, excluding nonoperating items and intangible asset amortization. Management believes that core pre-provision net revenue is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle. A reconciliation of net income to core pre-provision net revenue is included in Appendix A.

Important Cautionary Statement About 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. 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.

HANCOCK HOLDING COMPANY
FINANCIAL HIGHLIGHTS
(Unaudited)
				Three Months Ended											Six Months Ended
(amounts in thousands, except per share data)					6/30/2017				3/31/2017				6/30/2016				6/30/2017				6/30/2016
INCOME STATEMENT DATA
	Net interest income			$	199,717			$	181,691			$	164,969			$	381,408			$	327,805
	Net interest income (TE) (a)				208,281				189,989				171,165				398,270				339,344
	Provision for loan losses				14,951				15,991				17,196				30,942				77,232
	Noninterest income				67,487				63,491				63,694				130,978				121,880
	Noninterest expense				183,470				163,542				150,942				347,012				306,974
	Net income				52,267				49,014				46,907				101,281				50,746
	Nonoperating items, net - pre-tax (for informational purposes only)				10,617				2,111				-				12,728				4,978
PERIOD-END BALANCE SHEET DATA
	Loans			$	18,473,841			$	18,204,868			$	16,035,796			$	18,473,841			$	16,035,796
	Securities				5,668,836				5,001,273				4,806,370				5,668,836				4,806,370
	Earning assets				24,295,892				23,278,297				21,037,622				24,295,892				21,037,622
	Total assets				26,630,569				25,485,026				23,063,790				26,630,569				23,063,790
	Noninterest-bearing deposits				7,887,867				7,722,279				7,151,416				7,887,867				7,151,416
	Total deposits				21,442,815				19,922,020				18,816,869				21,442,815				18,816,869
	Common shareholders' equity				2,813,962				2,763,622				2,463,365				2,813,962				2,463,365
AVERAGE BALANCE SHEET DATA
	Loans			$	18,369,446			$	17,303,044			$	16,059,846			$	17,839,191			$	15,954,308
	Securities (b)				5,241,735				5,037,286				4,648,807				5,140,075				4,588,449
	Earning assets				24,338,130				22,770,001				21,147,029				23,558,398				21,028,849
	Total assets				26,526,253				24,756,506				23,138,591				25,646,268				23,035,553
	Noninterest-bearing deposits				7,769,932				7,462,258				7,079,426				7,616,945				7,056,553
	Total deposits				20,932,561				19,247,858				18,717,755				20,094,864				18,499,755
	Common shareholders' equity				2,786,566				2,733,089				2,430,005				2,759,975				2,430,876
COMMON SHARE DATA
	Earnings per share - diluted			$	0.60			$	0.57			$	0.59			$	1.17			$	0.64
	Cash dividends per share				0.24				0.24				0.24				0.48				0.48
	Book value per share (period-end)				33.21				32.70				31.77				33.21				31.77
	Tangible book value per share (period-end)				23.27				23.19				22.50				23.27				22.50
	Weighted average number of shares - diluted				84,867				84,624				77,680				84,755				77,676
	Period-end number of shares				84,738				84,517				77,538				84,738				77,538
	Market data
	High sales price			$	52.94			$	49.50			$	27.84			$	52.94			$	27.84
	Low sales price				42.70				41.71				21.93				41.71				20.01
	Period-end closing price				49.00				45.55				26.11				49.00				26.11
	Trading volume				39,035				45,119				41,668				84,154				97,987
PERFORMANCE RATIOS
	Return on average assets				0.79	%			0.80	%			0.82	%			0.80	%			0.44	%
	Return on average common equity				7.52	%			7.27	%			7.76	%			7.40	%			4.20	%
	Return on average tangible common equity				10.69	%			9.92	%			11.04	%			10.31	%			5.98	%
	Tangible common equity ratio (c)				7.65	%			7.94	%			7.81	%			7.65	%			7.81	%
	Net interest margin (TE) (a)				3.43	%			3.37	%			3.25	%			3.40	%			3.24	%
	Average loan/deposit ratio				87.76	%			89.90	%			85.80	%			88.77	%			86.24	%
	Efficiency ratio (d)				60.59	%			61.16	%			62.14	%			60.86	%			63.28	%
	Allowance for loan losses as a percent of period-end loans				1.20	%			1.17	%			1.41	%			1.20	%			1.41	%
	Annualized net non-FDIC acquired charge-offs to average loans				0.13	%			0.70	%			0.20	%			0.41	%			0.37	%
	Allowance for loan losses to non-performing loans + accruing loans
	90 days past due				63.92	%			68.77	%			73.01	%			63.92	%			73.01	%
	Noninterest income as a percent of total revenue (TE) (a)				24.47	%			25.05	%			27.12	%			24.75	%			26.43	%
	FTE headcount				4,162				3,819				3,723				4,162				3,723

(a) Tax-equivalent (TE) amounts are calculated using a federal income tax rate of 35%. (b) Average securities does not include unrealized holding gains/losses on available for sale securities. (c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. (d) The efficiency ratio is noninterest expense to total net interest (TE) and noninterest income, excluding amortization of purchased intangibles, and nonoperating items. 

HANCOCK HOLDING COMPANY
QUARTERLY HIGHLIGHTS
(Unaudited)
				Three Months Ended
(dollars in thousands, except per share data)					6/30/2017				3/31/2017				12/31/2016				9/30/2016				6/30/2016
INCOME STATEMENT DATA
	Net interest income			$	199,717			$	181,691			$	167,798			$	163,513			$	164,969
	Net interest income (TE) (a)				208,281				189,989				175,314				170,297				171,165
	Provision for loan losses				14,951				15,991				14,455				18,972				17,196
	Noninterest income				67,487				63,491				65,893				63,008				63,694
	Noninterest expense				183,470				163,542				156,283				149,058				150,942
	Net income				52,267				49,014				51,831				46,719				46,907
	Nonoperating items, net - pre-tax (for informational purposes only)				10,617				2,111				-				-				-
PERIOD-END BALANCE SHEET DATA
	Loans			$	18,473,841			$	18,204,868			$	16,752,151			$	16,070,821			$	16,035,796
	Securities				5,668,836				5,001,273				5,017,128				4,843,112				4,806,370
	Earning assets				24,295,892				23,278,297				21,881,520				21,085,398				21,037,622
	Total assets				26,630,569				25,485,026				23,975,302				23,108,730				23,063,790
	Noninterest-bearing deposits				7,887,867				7,722,279				7,658,203				7,543,041				7,151,416
	Total deposits				21,442,815				19,922,020				19,424,266				18,885,477				18,816,869
	Common shareholders' equity				2,813,962				2,763,622				2,719,768				2,489,127				2,463,365
AVERAGE BALANCE SHEET DATA
	Loans			$	18,369,446			$	17,303,044			$	16,323,897			$	16,023,458			$	16,059,846
	Securities (b)				5,241,735				5,037,286				4,939,240				4,707,224				4,648,807
	Earning assets				24,338,130				22,770,001				21,462,188				21,197,406				21,147,029
	Total assets				26,526,253				24,756,506				23,437,530				23,202,790				23,138,591
	Noninterest-bearing deposits				7,769,932				7,462,258				7,534,392				7,277,568				7,079,426
	Total deposits				20,932,561				19,247,858				18,912,155				18,710,236				18,717,755
	Common shareholders' equity				2,786,566				2,733,089				2,517,418				2,472,398				2,430,005
COMMON SHARE DATA
	Earnings per share - diluted			$	0.60			$	0.57			$	0.64			$	0.59			$	0.59
	Cash dividends per share				0.24				0.24				0.24				0.24				0.24
	Book value per share (period-end)				33.21				32.70				32.29				32.09				31.77
	Tangible book value per share (period-end)				23.27				23.19				23.87				22.89				22.50
	Weighted average number of shares - diluted				84,867				84,624				79,067				77,677				77,680
	Period-end number of shares				84,738				84,517				84,235				77,571				77,538
	Market data
	High sales price			$	52.94			$	49.50			$	45.50			$	32.94			$	27.84
	Low sales price				42.70				41.71				31.73				24.49				21.93
	Period-end closing price				49.00				45.55				43.10				32.43				26.11
	Trading volume				39,035				45,119				43,664				42,809				41,668
PERFORMANCE RATIOS
	Return on average assets				0.79	%			0.80	%			0.88	%			0.80	%			0.82	%
	Return on average common equity				7.52	%			7.27	%			8.19	%			7.52	%			7.76	%
	Return on average tangible common equity				10.69	%			9.92	%			11.42	%			10.58	%			11.04	%
	Tangible common equity ratio (c)				7.65	%			7.94	%			8.64	%			7.93	%			7.81	%
	Net interest margin (TE) (a)				3.43	%			3.37	%			3.26	%			3.20	%			3.25	%
	Average loan/deposit ratio				87.76	%			89.90	%			86.31	%			85.64	%			85.80	%
	Efficiency ratio (d)				60.59	%			61.16	%			62.82	%			61.80	%			62.14	%
	Allowance for loan losses as a percent of period-end loans				1.20	%			1.17	%			1.37	%			1.47	%			1.41	%
	Annualized net non-FDIC acquired charge-offs to average loans				0.13	%			0.70	%			0.50	%			0.24	%			0.20	%
	Allowance for loan losses to non-performing loans + accruing loans
	90 days past due				63.92	%			68.77	%			63.58	%			74.75	%			73.01	%
	Noninterest income as a percent of total revenue (TE) (a)				24.47	%			25.05	%			27.32	%			27.01	%			27.12	%
	FTE headcount				4,162				3,819				3,724				3,747				3,723

(a) Tax-equivalent (TE) amounts are calculated using a federal income tax rate of 35%.(b) Average securities does not include unrealized holding gains/losses on available for sale securities.(c) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets.(d) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles,and nonoperating items.

For More Information
Trisha Voltz Carlson 
EVP, Investor Relations Manager
504.299.5208
trisha.carlson@hancockwhitney.com