Click To Edit Master Title Style First Quarter 2017 Earnings Conference Call 4/19/2017
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, 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. 2
Corporate Profile (as of March 31, 2017) ▸ $25.5 billion in Total Assets ▸ $18.2 billion in Total Loans ▸ $19.9 billion in Total Deposits ▸ Tangible Common Equity (TCE) 7.94% ▸ Nearly 200 banking locations and 264 ATMs across our footprint ▸ Approximately 3,900 employees corporate-wide ▸ Rated among the strongest, safest financial institutions in the country by BauerFinancial, Inc. ▸ Earned top customer service marks with Greenwich Excellence Awards ▸ Moody’s long-term issuer rating: Baa3 ▸ S&P long-term issuer rating: BBB 3
First Quarter 2017 Highlights (compared to fourth quarter 2016) ($s in millions; except per share data) 1Q17 4Q16 1Q16 ▸ 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% Net Income $49.0 $51.8 $3.8 ▸ Includes a partial quarter impact from the acquisition of $.05 Earnings Per Share – diluted $.57 $.64 selected assets and liabilities of First NBC Bank (FNBC) of Weighted Average Shares Outstanding 84.6 79.1 77.7 $2.9 million, or $.03 per share, excluding acquisition costs of (diluted) $6.5 million Provision for loan losses $16.0 $14.5 $60.0 ▸ Acquired 9 branches from First NBC Bank; operational Return on Assets (%) 0.80 0.88 0.07 conversion expected in mid-May 2017 with the simultaneous Return on Tangible Common Equity (%) 9.92 11.42 0.91 closure of 10 overlapping branches Total Loans (period-end) $18,205 $16,752 $15,978 ▸ Total loans up $1.5 billion; includes $1.2 billion from the FNBC transaction (net of the fair value discount or “loan mark”) Total Deposits (period-end) $19,922 $19,424 $18,656 ▸ Energy loans comprise 7.1% of total loans, down from 8.4% Net Interest Margin (%) 3.37 3.26 3.23 Net Interest Margin (%) (core)* 3.29 3.19 3.12 ▸ Allowance for the energy portfolio totals $83.7 million, or 6.5% of energy loans Net Charge-offs (%) (non-PCI) 0.70 0.50 0.54 ▸ Total deposits up $498 million; includes $398 million from the Tangible Common Equity (%) 7.94 8.64 7.69 FNBC transaction Efficiency Ratio** (%) 61.2 62.8 64.5 ▸ Purchased $604 million of FHLB advances from FNBC ▸ Net interest margin (NIM) of 3.37% up 11 basis points (bps); Net Purchase Accounting Income (pre-tax) -$1.2 -$2.2 -$1.1 core NIM up 10 bps to 3.29% Nonoperating expense, net (pre-tax) $2.1 -- $5.0 ▸ Tangible common equity (TCE) ratio down 70 bps to 7.94%; Pre-provision net revenue (core)* $93.3 $87.2 $76.4 reflects partial use of capital raised in December 2016 *See slides 24-26 for non-GAAP reconciliations ** Efficiency Ratio is noninterest expense to total net interest (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items. 4
Core pre-provision net revenue (PPNR) continues to grow 1Q17 vs. 1Q16 growth in core PPNR +22% 1Q17 vs. 4Q16 growth in core PPNR +7% $100.0 $95.0 +22% $90.0 +7% $85.0 $80.0 $75.0 $70.0 $65.0 $60.0 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 $s in millions See slide 24 for non-GAAP reconciliation 5
Total Loans by Type Well-Diversified Loan Portfolio $18,205 3/31/17 Consumer $2,059 11% C&I ▸ Loans totaled $18.2 billion at quarter-end, an increase of $1.5 $8,074 44% Mortgage billion, or 9%, linked-quarter $2,266 13% • 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) Income- producing CRE $2,505 ▸ Reflects $123 million net decrease in energy-related loans 14% C&D $1,253 Owner- 7% occupied CRE $2,047 11% Total Loans by Market/LOB $19,000 $18,205 3/31/17 $119 $18,500 $123 Other $16 $75 $46 $13 $26 $84 $1,493 $155 East Region (MS $1,186 8% Energy $18,000 AL & FL) $1,289 $4,209 7% 23% $17,500 Millions Mortgage $2,266 $17,000 12% 18,205 $16,500 Equipment Finance $16,000 $459 16,752 3% Central Region $15,500 Indirect (SE LA) $499 $3,405 3% 19% $15,000 4Q16 FNBC East Region Central West Region Nashville Indirect Equipment Mortgage Energy Other 1Q17 FNBC acquired acquired (MS. AL & Region (SE (TX & SW LA) Healthcare Finance loans loans (net of FL) LA) $1,186 loan mark) Nashville 6% West Region (TX Healthcare & SW LA) $363 $3,036 2% 17% $s in millions 6
Energy Portfolio Overview Energy Portfolio as a % of Total Loans ▸ Energy loans totaled $1.3 billion, or 7.1% of 14.0% total loans, down $123 million linked-quarter 13.0% and down $344 million from a year ago 12.0% 11.0% ▸ Linked-quarter change reflects approximately 10.0% $160 million in net reductions, plus approximately $23 million in charge-offs, offset 9.0% by approximately $60 million in net increases 8.0% 7.0% 6.0% * 5.0% 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% *Strategic target $19.0 $17.0 $15.0 $13.0 $11.0 $9.0 $7.0 $5.0 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% LQA EOP growth -3% 7% 2% 20% 7% 11% 14% 16% 1% 12% 12% 25% 7% 1% 1% 17% 35% LQA EOP growth excl -6% 6% -7% 14% 4% 10% 13% 20% 2% 14% 13% 31% 6% 6% 3% 18% 41% energy 7
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