Hancock Holding Company

1
Hancock Holding Company
HHC Corporate Headquarters Gulfport, MS
2
Overview of Firm

• Hancock Bank established in 1899 in Bay St.
  Louis, Mississippi
• Hancock Bank of Mississippi
• Hancock Bank of Louisiana
• Hancock Bank of Alabama
• Hancock Bank of Florida
• 157 branches and financial offices
• 137 ATMs
• 7.2 billion in bank assets

3
Payment Keeper

• 2004 Hancock Bank Transitioned from Credit Life
  to Debt Protection
• Positives
• Bank acted quickly
• Adopted the benefits of DP very early
• Chose to be pro active in finding a work - around
  for the systems constraints

4
Payment Keeper

• Negatives
• Not enough consideration placed on lenders
  feelings of product set
• Payment keeper was billed outside of loan payment
  separate ACH
• Lack of accountability
• Value of product not recognized on division level

5
Original Program Results

• Dismal from the 2004 Inception Date through May
  2008 sales acceptance averaged 4

6
Time to Make a Change

• 3 Key Issues went into Decision
• Product Review
• Process sales and back office
• Pricing must include fee with loan payment

7
Project Implementation Team

• 17 Bank Departments
• 23 Bank Employees
• New administrator Life of the South

8
Project Implementation

• 1200 programming hours
• New documents
• Ability to calculate payment with accrued Payment
  Keeper fee
• New reporting requirements
• Legal/Auditing requirements

9
Payment Keeper Product Summary
10
Key Factors for Success

• Structure attention getting incentive program
• Direct revenue stream to branch/division where
  sale occurs
• WE DID - AND WE DID

11
Current Incentive Program

• Sale of single loss of life 20.00
• Sale of joint loss of life 30.00
• Sale of Single or joint loss of life with either
  disability or job loss 40.00
• Sale of single or joint loss of life with both
  disability and job loss 50.00

12
Results

• New payment keeper rollout 4/7/2008
• April,08 sales penetration 20
• Current sales penetration 25
• Hancock Bank Mississippi 30
• At year end, 2008 we had written more contracts
  than 04,05,06 and 07 combined

13
Incentive Results

• Average incentive payout (quarterly) from 04, to
  Mar 08 - 1,500.00
• 2nd Quarter 08 payout 18,000.00
• 3rd Quarter 08 payout 19,500.00
• Top Earner - 840.00
• 175 lenders received incentive
• Average amount paid 111.00

14
Measurement

• Projected growth rate through 2008 135 monthly
• 4th QT. 08 average growth rate around 112
• Presently writing installment loans only
• Will add Helocs 1st Quarter 2010