GULFPORT, Miss., Oct. 17, 2006 (PRIMEZONE) -- Hancock Holding Company (Nasdaq:HBHC) and Leo W. Seal, Jr., President of Hancock Holding Company, today announced earnings for the quarter ended September 30, 2006. Hancock's third quarter 2006 earnings were $36.0 million, an increase of $34.6 million from the third quarter of 2005. Diluted earnings per share for the third quarter of 2006 were $1.08, an increase of $1.04 from the same quarter a year ago.
Hancock's earnings for the third quarter of 2006 included a $20.0 million negative provision for loan losses, which included a partial reversal of the Company's storm-related allowance for loan losses. In the third quarter of 2005, Hancock established a $35.2 million allowance for loan losses related to projected credit losses associated with the impact of Hurricane Katrina. Through the third quarter of 2006, the Company has experienced storm-related charge-offs of about $4.4 million. While management has determined that the potential for further storm-related charge-offs is present, the levels are projected to be lower than originally anticipated. The Company reviewed the asset quality of significant credits included in the original $35.2 million storm-related allowance and determined that this partial reversal was appropriate.
Excluding the aforementioned $20.0 million (pre-tax) negative provision related to the storm, adjusted earnings for third quarter 2006 were $23.0 million. Adjusted earnings for the third quarter of 2005 were $18.8 million (after excluding the pre-tax impact of $35.2 million to establish a storm-related provision for credit losses, a net gain on insurance less direct expenses incurred of $12.3 million, and approximately $3.8 million of waived fees). Adjusted diluted earnings per share were $0.69 for the third quarter of 2006, compared to $0.57 for the third quarter of 2005. Reported earnings for second quarter 2006 (there were no storm-related adjustments) were $22.0 million, and diluted earnings per share were $0.66.
Hancock's third quarter performance included the following significant items:
-- Superior Returns: Hancock's third quarter adjusted return on
average assets was 1.51 percent, with an adjusted return on
average common equity of 17.63 percent
-- Strong Loan Growth: Third quarter average loans were up
$86.3 million, or 12 percent annualized, compared to the second
quarter of 2006, and were up $161.7 million, or 6 percent,
compared to the third quarter of 2005. Loan growth was mostly
reflected in commercial purpose and mortgage loans and is
indicative of the ongoing recovery in the region.
-- Net Interest Margin: The Company's net interest margin (te) of
4.29 percent narrowed 11 basis points from the third quarter of
2005, but was 2 basis points wider than the previous quarter.
Net interest income (te) was $11.4 million, or 24 percent, higher
than last year's third quarter, but was $0.5 million lower than
the previous quarter.
-- Asset Quality: Net charge-offs for the third quarter were
$2.6 million, or 0.34 percent of average loans, down $0.4 million
from the $3.0 million, or 0.40 percent of average loans, reported
for the second quarter of 2006. Storm-related net charge-offs for
the third quarter of 2006 totaled $0.3 million and were
$4.4 million since the third quarter of 2005. Non-performing
assets as a percent of loans and foreclosed property fell 9 basis
points from the prior quarter to 0.20 percent at September 30,
2006. Loans past due 90 days at September 30, 2006, were
0.12 percent, compared to 0.22 percent at June 30, 2006.
-- Allowance for Loan Losses: Hancock's allowance for loan losses at
September 30, 2006 was $48.4 million, or 1.54 percent of
period-end loans, a decrease of $22.6 million from the June 30,
2006 level.
George A. Schloegel, Chief Executive Officer of Hancock Holding Company, commented on the Company's third quarter operating results, "The recovery work that continues on a daily basis in our region is symbolic of a recovering economy that will thrive as the rebuilding efforts ramp up. With third quarter loan growth of $86.3 million compared to last quarter, Hancock stands ready to continue participating in and leading the region's rebuilding efforts."
Balance Sheet Growth and Capital
At September 30, 2006, Hancock's total loans were $3.1 billion, which represented an increase of $157.0 million, or 5 percent, from September 30, 2005. Period-end loans were up $97.1 million, or 3 percent, compared to June 30, 2006. As mentioned, average loans were up $86.3 million, or 12 percent annualized, from the second quarter. Of that increase, approximately $50.4 million of growth was in Louisiana, $28.9 million in Mississippi and $7.0 million in Florida. The Company expects that this quarter's loan growth is representative of the rebuilding efforts throughout the region and is sustainable.
Period-end deposits for the third quarter were $5.0 billion, up $975.4 million, or 24 percent, from September 30, 2005, but were down $246.8 million, or 5 percent, from June 30, 2006. The Company believes that the third quarter's net out flows of deposits is a signal that businesses and consumers alike are beginning their own rebuilding efforts as the overwhelming majority of deposit outflows occurred in transaction deposits (both interest and non-interest bearing). The quarter-end deposit balances do not include any significant funds from the distribution of Community Development Block Grants (storm- related federal aid to homeowners), which have not yet begun in Louisiana or Mississippi.
The Company's total assets at September 30, 2006, were $6.1 billion, up $1.2 billion, or 25 percent compared to last year, but down $33.5 million, or 0.5 percent, from June 30, 2006. Hancock remains very well capitalized, even with a significant increase in total assets from last year. As of September 30, 2006, Hancock's Leverage (tier one) Ratio stands at 8.15 percent, while the Tangible Equity Ratio was 7.79 percent.
Net Interest Income
Net interest income (te) for the third quarter increased $11.4 million, or 24 percent, from the third quarter of 2005, but was $0.5 million lower then the second quarter of 2006. The Company's net interest margin (te) was 4.29 percent in the third quarter, 11 basis points narrower than the same quarter a year ago and 2 basis points wider than the previous quarter.
Compared to the same quarter a year ago, the primary driver of the $11.4 million increase in net interest income (te) was a $1.2 billion, or 27 percent, increase in average earning assets mainly from average deposit inflows of $1.3 billion, or 33 percent. The increase in deposits was related to insurance settlements for business and consumers, as well as other forms of federal aid to customers impacted by Hurricane Katrina. Of the $1.2 billion increase in average earning assets, $161.7 million was deployed into loans and $1.0 billion into securities and other short-term investments. The net interest margin (te) narrowed 11 basis points as the increase in the average earning asset yield (40 basis points) did not offset the increase in total funding costs (51 basis points).
The Company's level of net interest income (te) in the third quarter decreased $0.5 million, or 0.8 percent, from the prior quarter. Average earning assets decreased $96.9 million, or 2 percent, from the previous quarter due to average deposit outflows of $164.5 million, or 3 percent. Of the $164.5 million decrease in average deposits, $79.0 million was in non-interest bearing deposits and $106.3 million in interest-bearing transactions deposits. The majority of deposit outflows were believed to be related to rebuilding efforts throughout the Company's operating region. Average loans were up $86.3 million, or 12 percent annualized, from the prior quarter, reflected mostly in higher levels of commercial purpose loans and mortgage loans. The net interest margin (te) widened 2 basis points from the prior quarter as the yield on average earning assets increased 27 basis points, while total funding costs were up 25 basis points. The yield on average earning assets continues to be impacted by the larger percent of the Company's earning assets in securities and short-term investments (44 percent) than deployed into loans (56 percent). The total cost of funds was up 25 basis points mostly due to increase in cost of public fund deposits (indexed to short-term market rates) as well as higher rates paid on time deposits.
Non-interest Income and Non-interest Expense
Excluding the impact of storm-related gains/(losses) and securities transactions, non-interest income for the third quarter was up $4.0 million, or 19 percent, compared to the same quarter a year ago. Non-interest income was down $0.3 million, or 1 percent, compared to the second quarter. The primary factors impacting the higher levels of non-interest income as compared to the same quarter a year ago were higher levels of service charge fees (up $1.7 million, or 22 percent). In addition, debit card and merchant fees were up $0.7 million, when compared to the same quarter a year ago. However, insurance fees were down $0.7 million. The decrease in non-interest income for the third quarter (excluding securities transactions) compared to the prior quarter was due to decreases in trust fees (down $0.2 million) and insurance fees (down $0.5 million).
Operating expenses for the third quarter were $7.6 million, or 18 percent, higher compared to the same quarter a year ago, but were $0.8 million, or 2 percent, lower than the previous quarter. The increase from the same quarter a year ago was reflected in higher levels of personnel expense (up $2.8 million), data processing expense (up $1.7 million), professional services expense (up $1.3 million), and all other expenses (up $1.8 million). The decrease in non-interest expenses from the prior quarter was reflected in lower levels of occupancy expense (down $0.6 million) and other operating expenses (down $0.9 million), offset by a higher level of personnel expense (up $0.7 million).
Asset Quality
Annualized net charge-offs, as a percent of average loans, for the third quarter were 0.34 percent, compared to 0.40 percent for the second quarter, and to 0.23 percent in the third quarter of 2005. During the third quarter of 2006, the Company recorded $20.0 million negative provision, primarily as a result of a better than expected credit loss experience related to Hurricane Katrina. No provision for loan losses was booked in the second quarter of 2006, while the third quarter of 2005's provision was $36.9 million, of which $35.2 million was related to the establishment of a storm-related allowance for loan losses.
Non-performing assets as a percent of total loans and foreclosed assets was 0.20 percent at September 30, 2006, compared to 0.29 percent at June 30, 2006. Compared to the third quarter of 2005, the ratio of non-performing assets as a percent of total loans and foreclosed assets was down 25 basis points. Non-performing assets decreased $2.7 million from June 30, 2006, reflecting primarily lower levels of non-accrual loans. The Company's ratio of accruing loans 90 days or more past due to total loans was 0.12 percent at September 30, 2006, compared to 0.22 percent at June 30, 2006 and to 0.21 percent at September 30, 2005.
The Company's allowance for loan losses was $48.4 million at September 30, 2006, down $22.6 million from the $71.0 million reported at June 30, 2006, and $28.2 million lower than the $76.6 million reported at September 30, 2005. The ratio of the allowance for loan losses as a percent of period-end loans was 1.54 percent at September 30, 2006, and 2.33 percent at June 30, 2006. The allowance coverage ratio (allowance for loan losses to non-performers and past dues) was 495 percent in third quarter 2006, as compared to 457 percent in second quarter, and 393 percent in third quarter 2005. As previously mentioned, the Company had established a specific allowance of $35.2 million for estimated credit losses related to the impact of Hurricane Katrina on Hancock's loan portfolio in the third quarter of 2005. Hancock recorded storm-related net charge-offs through September 30, 2006 of $4.4 million directly against the aforementioned allowance. In the third quarter, the Company recorded a $20.0 million negative loan loss provision that included a partial reversal of the storm-related allowance.
General
Hancock Holding Company -- parent company of Hancock Bank (Mississippi), Hancock Bank of Louisiana, Hancock Bank of Florida, and Magna Insurance Company -- has assets of $6.1 billion. Founded in 1899, Hancock Bank stands among the strongest, safest financial institutions in the United States and is the only financial services company headquartered in the Gulf South to rate among the top 20 percent of America's top-performing banks. Hancock offers comprehensive financial solutions through more than 140 banking and financial services offices and more than 130 automated teller machines across south Mississippi, Louisiana, south Alabama and the Florida Panhandle. Additional corporate information and on-line banking and bill pay services are available at www.hancockbank.com.
The Hancock Holding Company logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2758
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about companies' anticipated future financial performance. This act provides a safe harbor for such disclosure, which protects the companies from unwarranted litigation if actual results are different from management expectations. This release contains forward-looking statements and reflects management's current views and estimates of future economic circumstances, industry conditions, company performance, and financial results. These forward-looking statements are subject to a number of factors and uncertainties which could cause the Company's actual results and experience to differ from the anticipated results and expectations expressed in such forward-looking statements.
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
-----------------------------------------------------
Three Months Ended Nine Months Ended
------------------------------- --------------------
9/30/2006 6/30/2006 9/30/2005 9/30/2006 9/30/2005
--------- --------- --------- --------- ---------
Per Common Share
Data
----------------
Earnings per
share:
Basic $ 1.11 $ 0.68 $ 0.04 $ 2.46 $ 1.08
Diluted $ 1.08 $ 0.66 $ 0.04 $ 2.41 $ 1.06
Cash dividends
per share $ 0.240 $ 0.220 $ 0.195 $ 0.655 $ 0.525
Book value per
share
(period-end) $ 16.64 $ 15.12 $ 14.52 $ 16.64 $ 14.52
Tangible book
value per share
(period-end) $ 14.47 $ 12.94 $ 12.25 $ 14.47 $ 12.25
Weighted average
number of shares:
Basic 32,566 32,531 32,308 32,500 32,388
Diluted 33,333 33,322 32,940 33,274 32,959
Period-end number
of shares 32,584 32,555 32,309 32,584 32,309
Market data:
High closing
price $ 56.79 $ 57.19 $ 37.84 $ 57.19 $ 37.84
Low closing
price $ 49.71 $ 44.02 $ 29.93 $ 37.75 $ 28.25
Period end
closing price $ 53.55 $ 56.00 $ 34.14 $ 53.55 $ 34.14
Trading volume 8,135 8,737 8,760 20,883 15,575
Other Period-end
Data
----------------
FTE headcount 1,788 1,777 1,590 1,788 1,590
Tangible common
equity $471,387 $421,369 $395,843 $471,387 $395,843
Tier I capital $487,668 $457,738 $407,075 $487,668 $407,075
Goodwill $ 59,683 $ 59,060 $ 61,428 $ 59,683 $ 61,428
Amortizable
intangibles $ 9,938 $ 10,575 $ 9,928 $ 9,938 $ 9,928
Mortgage
servicing
intangibles $ 1,093 $ 1,256 $ 1,860 $ 1,093 $ 1,860
Common shares
repurchased
for publicly
announced plans -- 22 12 39 148
Performance Ratios
------------------
Return on average
assets 2.36% 1.45% 0.12% 1.77% 0.98%
Return on average
common equity 27.58% 17.89% 1.18% 21.42% 9.81%
Earning asset
yield (TE) 6.60% 6.32% 6.19% 6.36% 6.06%
Total cost of
funds 2.30% 2.05% 1.80% 2.08% 1.67%
Net interest
margin (TE) 4.29% 4.27% 4.40% 4.28% 4.39%
Non-interest
expense as a
percent of total
revenue (TE)
before amortiza-
tion of purchased
intangibles, net
storm-related
gain/(loss)
and securities
transactions 58.76% 59.13% 60.85% 58.73% 59.53%
Common equity
(period-end) as
a percent of
total assets
(period-end) 8.86% 8.00% 9.55% 8.86% 9.55%
Leverage (Tier I)
ratio 8.15% 7.59% 8.64% 8.15% 8.64%
Tangible common
equity ratio 7.79% 6.92% 8.17% 7.79% 8.17%
Net charge-offs
as a percent of
average loans 0.34% 0.40% 0.23% 0.24% 0.27%
Allowance for
loan losses as a
percent of
period-end loans 1.54% 2.33% 2.57% 1.54% 2.57%
Allowance for
loan losses to
NPAs + accruing
loans 90 days
past due 494.65% 457.10% 392.70% 494.65% 392.70%
Loan/deposit
ratio 60.97% 57.40% 76.77% 59.11% 74.28%
Non-interest
income excluding
net storm-related
gain/(loss) and
securities trans-
actions as a
percent of total
revenue (TE) 30.18% 30.28% 31.10% 30.13% 32.66%
----------------------------------------------------
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
----------------------------------------------------------
Three Months Ended Nine Months Ended
---------------------------------- ----------------------
9/30/2006 6/30/2006 9/30/2005 9/30/2006 9/30/2005
---------- --------- ---------- ---------- ----------
Asset Quality
Information
-------------
Non-accrual
loans $ 5,179 $ 7,237 $ 10,373 $ 5,179 $ 10,373
Foreclosed
assets 970 1,606 2,973 970 2,973
----------------------------------------------------------
Total non-
performing
assets $ 6,149 $ 8,843 $ 13,346 $ 6,149 $ 13,346
----------------------------------------------------------
Non-per-
forming
assets as
a percent
of loans
and fore-
closed
assets 0.20% 0.29% 0.45% 0.20% 0.45%
Accruing
loans 90
days past
due $ 3,626 $ 6,681 $ 6,156 $ 3,626 $ 6,156
Accruing
loans 90
days past
due as
a percent
of loans 0.12% 0.22% 0.21% 0.12% 0.21%
Non-per-
forming
assets +
accruing
loans 90
days past
due to
loans and
foreclosed
assets 0.31% 0.51% 0.65% 0.31% 0.65%
Net charge-
offs $ 2,608 $ 3,001 $ 1,704 $ 5,501 $ 5,655
Net charge-
offs as a
percent of
average
loans 0.34% 0.40% 0.23% 0.24% 0.27%
Allowance
for loan
losses $ 48,352 $ 70,960 $ 76,584 $ 48,352 $ 76,584
Allowance
for loan
losses as
a percent
of period-
end loans 1.54% 2.33% 2.57% 1.54% 2.57%
Allowance
for loan
losses to
NPAs +
accruing
loans 90
days past
due 494.65% 457.10% 392.70% 494.65% 392.70%
Provision
for loan
losses $ (20,000) -- $ 36,905 $ (20,705) $ 41,556
Allowance
for Loan
Losses
-----------
Beginning
Balance $ 70,960 $ 73,961 $ 41,382 $ 74,558 $ 40,682
Provision
for loan
loss (20,000) -- 36,905 (20,705) 41,556
Charge-offs 6,358 4,742 3,699 15,022 11,264
Recoveries 3,750 1,741 1,995 9,521 5,609
----------------------------------------------------------
Net charge-
offs 2,608 3,001 1,704 5,501 5,655
----------------------------------------------------------
Ending
Balance $ 48,352 $ 70,960 $ 76,584 $ 48,352 $ 76,584
----------------------------------------------------------
Net Charge-off
Information
--------------
Net charge-
offs:
Commercial/
real estate
loans $ 522 $ 620 $ (17) $ (628) $ 955
Mortgage
loans 367 28 7 576 70
Direct
consumer
loans 1,003 1,681 861 3,264 1,853
Indirect
consumer
loans 294 391 342 1,338 1,420
Finance
company
loans 422 281 511 951 1,357
----------------------------------------------------------
Total net
charge-offs
(including
storm-
related) $ 2,608 $ 3,001 $ 1,704 $ 5,501 $ 5,655
Storm-
related net
charge-offs 284 1,133 -- 2,014 --
----------------------------------------------------------
Total net
charge-offs
(excluding
storm-
related) $ 2,324 $ 1,868 $ 1,704 $ 3,487 $ 5,655
==========================================================
Average
loans:
Commercial/
real estate
loans $1,759,173 $1,699,768 $1,584,244 $1,711,525 $1,533,208
Mortgage
loans 423,610 410,522 430,615 414,768 418,479
Direct
consumer
loans 470,771 463,977 504,362 468,196 505,899
Indirect
consumer
loans 347,404 348,463 335,482 349,076 324,122
Finance
Company
loans 79,483 71,461 64,006 71,868 62,295
----------------------------------------------------------
Total
average
loans $3,080,442 $2,994,191 $2,918,709 $3,015,434 $2,844,003
Net charge-
offs to
average
loans:
Commercial/
real estate
loans 0.12% 0.15% 0.00% -0.05% 0.08%
Mortgage
loans 0.34% 0.03% 0.01% 0.19% 0.02%
Direct
consumer
loans 0.85% 1.45% 0.68% 0.93% 0.49%
Indirect
consumer
loans 0.34% 0.45% 0.40% 0.51% 0.59%
Finance
Company
loans 2.11% 1.58% 3.17% 1.77% 2.91%
----------------------------------------------------------
Total net
charge-offs
to average
loans
(including
storm-
related) 0.34% 0.40% 0.23% 0.24% 0.27%
----------------------------------------------------------
Total net
charge-offs
to average
loans
(excluding
storm-
related) 0.30% 0.25% 0.23% 0.15% 0.27%
----------------------------------------------------------
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
-----------------------------------------------------
Three Months Ended Nine Months Ended
------------------------------- --------------------
9/30/2006 6/30/2006 9/30/2005 9/30/2006 9/30/2005
--------- --------- --------- --------- ---------
Income Statement
----------------
Interest income $89,233 $86,404 $65,644 $257,226 $190,202
Interest
income (TE) 91,275 88,375 67,506 263,226 195,576
Interest expense 31,988 28,636 19,659 85,897 53,908
----------------------------------------------------
Net interest
income (TE) 59,286 59,740 47,847 177,329 141,667
Provision for
loan losses (20,000) -- 36,905 (20,705) 41,556
Non-interest
income ex-
cluding net
storm-related
gain/(loss)
and securities
transactions 25,627 25,942 21,600 76,459 68,722
Net storm-
related
gain/(loss) -- -- 12,276 -- 12,276
Securities
transactions
gains/(losses) 110 -- (18) 228 (26)
Non-interest
expense 50,336 51,172 42,770 150,674 126,917
----------------------------------------------------
Income before
income taxes 52,645 32,536 168 118,047 48,791
Income tax
expense 16,614 10,539 (1,267) 38,006 13,824
----------------------------------------------------
Net income $36,031 $21,998 $ 1,435 $ 80,041 $ 34,968
====================================================
Non-interest
Income and
Operating
Expense
------------
Service charges
on deposit
accounts $ 9,719 $ 9,223 $ 7,975 $ 26,826 $ 27,924
Trust fees 3,175 3,409 2,761 9,662 8,161
Debit card
& merchant
fees 1,744 1,863 1,055 5,316 3,160
Insurance
fees 4,146 4,596 4,883 13,900 12,262
Investment &
annuity fees 1,595 1,591 1,304 4,450 4,039
ATM fees 1,223 1,273 871 3,790 3,397
Secondary
mortgage
market
operations 1,018 749 377 2,583 1,552
Other income 3,009 3,239 2,374 9,932 8,228
----------------------------------------------------
Non-interest
income ex-
cluding net
storm-related
gain/(loss)
and securities
transactions $25,627 $25,942 $21,600 $ 76,459 $ 68,722
Net storm-
related
gain/(loss) -- -- 12,276 -- 12,276
Securities
transactions
gains/(losses) 110 -- (18) 228 (26)
----------------------------------------------------
Total non-
interest
income in-
cluding net
storm-related
gain/(loss)
and securities
transactions $25,737 $25,942 $33,858 $ 76,686 $ 80,972
====================================================
Personnel
expense $27,059 $26,400 $24,275 $ 79,661 $ 69,579
Occupancy
expense (net) 2,882 3,474 2,617 10,015 7,688
Equipment
expense 2,647 2,816 2,319 8,131 7,042
Other
operating
expense 17,304 17,976 13,044 51,241 40,931
Amortization
of intangibles 445 507 514 1,626 1,676
----------------------------------------------------
Total non-
interest
expense $50,336 $51,172 $42,770 $150,674 $126,917
====================================================
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited) ------------------------------------
Three Months Ended
------------------------------------
9/30/2006 6/30/2006 9/30/2005
Period-end Balance Sheet ------------------------------------
------------------------
Commercial/real estate loans $1,800,643 $1,727,236 $1,637,011
Mortgage loans 430,086 423,001 441,512
Direct consumer loans 477,142 470,433 501,704
Indirect consumer loans 350,013 348,342 339,822
Finance Company loans 83,278 75,053 64,121
------------------------------------
Total loans 3,141,162 3,044,065 2,984,170
Securities 2,303,396 2,133,792 1,323,166
Short-term investments 74,902 414,062 141,270
------------------------------------
Earning assets 5,519,461 5,591,919 4,448,606
------------------------------------
Allowance for loan losses (48,352) (70,960) (76,584)
Other assets 650,556 634,233 541,467
------------------------------------
Total assets $6,121,665 $6,155,192 $4,913,490
====================================
Non-interest bearing
deposits $1,062,348 $1,206,235 $ 909,585
Interest bearing transaction
deposits 1,510,785 1,640,552 1,369,886
Interest bearing Public Fund
deposits 795,927 853,566 574,603
Time deposits 1,631,504 1,546,973 1,171,080
------------------------------------
Total interest bearing deposits 3,938,216 4,041,092 3,115,568
------------------------------------
Total deposits 5,000,565 5,247,327 4,025,153
Other borrowed funds 430,827 227,793 249,228
Other liabilities 148,173 187,812 170,049
Common shareholders' equity 542,101 492,260 469,059
------------------------------------
Total liabilities &
common equity $6,121,665 $6,155,192 $4,913,490
====================================
Average Balance Sheet
---------------------
Commercial/real estate loans $1,759,173 $1,699,768 $1,584,244
Mortgage loans 423,610 410,522 430,615
Direct consumer loans 470,771 463,977 504,362
Indirect consumer loans 347,404 348,463 335,482
Finance Company loans 79,483 71,461 64,006
------------------------------------
Total loans 3,080,442 2,994,191 2,918,709
Securities 2,334,242 2,273,012 1,364,219
Short-term investments 94,026 338,443 52,933
------------------------------------
Earning average assets 5,508,709 5,605,646 4,335,861
------------------------------------
Allowance for loan losses (61,525) (73,706) (41,765)
Other assets 602,833 570,497 487,867
------------------------------------
Total assets $6,050,017 $6,102,438 $4,781,962
====================================
Non-interest bearing deposits $1,098,716 $1,177,756 $ 729,216
Interest bearing transaction
deposits 1,590,319 1,696,598 1,311,779
Interest bearing Public
Fund deposits 791,825 837,751 617,017
Time deposits 1,571,129 1,504,343 1,143,691
------------------------------------
Total interest bearing deposits 3,953,272 4,038,692 3,072,488
------------------------------------
Total deposits 5,051,988 5,216,448 3,801,704
Other borrowed funds 304,686 210,388 335,758
Other liabilities 175,092 182,453 160,232
Common shareholders' equity 518,250 493,149 484,269
------------------------------------
Total liabilities &
common equity $6,050,017 $6,102,438 $4,781,962
====================================
--------------------------
Nine Months Ended
--------------------------
Period-end Balance Sheet 9/30/2006 9/30/2005
------------------------ --------------------------
Commercial/real estate loans $ 1,800,643 $ 1,637,011
Mortgage loans 430,086 441,512
Direct consumer loans 477,142 501,704
Indirect consumer loans 350,013 339,822
Finance Company loans 83,278 64,121
--------------------------
Total loans 3,141,162 2,984,170
Securities 2,303,396 1,323,166
Short-term investments 74,902 141,270
--------------------------
Earning assets 5,519,461 4,448,606
--------------------------
Allowance for loan losses (48,352) (76,584)
Other assets 650,556 541,467
--------------------------
Total assets $ 6,121,665 $ 4,913,490
==========================
Non-interest bearing deposits $ 1,062,348 $ 909,585
Interest bearing transaction deposits 1,510,785 1,369,886
Interest bearing Public Fund deposits 795,927 574,603
Time deposits 1,631,504 1,171,080
--------------------------
Total interest bearing deposits 3,938,216 3,115,568
--------------------------
Total deposits 5,000,565 4,025,153
Other borrowed funds 430,827 249,228
Other liabilities 148,173 170,049
Common shareholders' equity 542,101 469,059
--------------------------
Total liabilities & common equity $ 6,121,665 $ 4,913,490
==========================
Average Balance Sheet
---------------------
Commercial/real estate loans $ 1,711,525 $ 1,533,208
Mortgage loans 414,768 418,479
Direct consumer loans 468,196 505,899
Indirect consumer loans 349,076 324,122
Finance Company loans 71,868 62,295
--------------------------
Total loans 3,015,434 2,844,003
Securities 2,254,068 1,388,143
Short-term investments 255,265 77,300
--------------------------
Earning average assets 5,524,767 4,309,446
--------------------------
Allowance for loan losses (69,840) (41,217)
Other assets 590,641 496,811
--------------------------
Total assets $ 6,045,569 $ 4,765,041
==========================
Non-interest bearing deposits $ 1,158,844 $ 720,413
Interest bearing transaction deposits 1,666,689 1,321,105
Interest bearing Public Fund deposits 780,947 670,477
Time deposits 1,494,748 1,116,876
--------------------------
Total interest bearing deposits 3,942,384 3,108,457
--------------------------
Total deposits 5,101,228 3,828,870
Other borrowed funds 267,666 304,192
Other liabilities 177,182 155,437
Common shareholders' equity 499,492 476,542
--------------------------
Total liabilities & common equity $ 6,045,569 $ 4,765,041
==========================
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
----------------------------------------------------------
Three Months Ended Nine Months Ended
---------------------------------- ----------------------
9/30/2006 6/30/2006 9/30/2005 9/30/2006 9/30/2005
---------- ---------- ---------- ---------- ----------
Average
Balance
Sheet Mix
-----------
Percentage
of earning
assets/
funding
sources:
Loans 55.92% 53.41% 67.32% 54.58% 65.99%
Securities 42.37% 40.55% 31.46% 40.80% 32.21%
Short-term
investments 1.71% 6.04% 1.22% 4.62% 1.79%
----------------------------------------------------------
Earning
average
assets 100.00% 100.00% 100.00% 100.00% 100.00%
==========================================================
Non-interest
bearing
deposits 19.95% 21.01% 16.82% 20.98% 16.72%
Interest
bearing
transaction
deposits 28.87% 30.27% 30.25% 30.17% 30.66%
Interest
bearing
Public Fund
deposits 14.37% 14.94% 14.23% 14.14% 15.56%
Time deposits 28.52% 26.84% 26.38% 27.06% 25.92%
----------------------------------------------------------
Total
deposits 91.71% 93.06% 87.68% 92.33% 88.85%
Other
borrowed
funds 5.53% 3.75% 7.74% 4.84% 7.06%
Other net
interest-
free funding
sources 2.76% 3.19% 4.58% 2.82% 4.09%
----------------------------------------------------------
Total
average
funding
sources 100.00% 100.00% 100.00% 100.00% 100.00%
==========================================================
Loan mix:
Commercial/
real estate
loans 57.11% 56.77% 54.28% 56.76% 53.91%
Mortgage
loans 13.75% 13.71% 14.75% 13.75% 14.71%
Direct
consumer
loans 15.28% 15.50% 17.28% 15.53% 17.79%
Indirect
consumer
loans 11.28% 11.64% 11.49% 11.58% 11.40%
Finance
Company
loans 2.58% 2.39% 2.19% 2.38% 2.19%
----------------------------------------------------------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
==========================================================
Average
dollars
(in thousands):
Loans $3,080,442 $2,994,191 $2,918,709 $3,015,434 $2,844,003
Securities 2,334,242 2,273,012 1,364,219 2,254,068 1,388,143
Short-term
investments 94,026 338,443 52,933 255,265 77,300
----------------------------------------------------------
Earning
average
assets $5,508,709 $5,605,646 $4,335,861 $5,524,767 $4,309,446
Non-interest
bearing
deposits $1,098,716 $1,177,756 $ 729,216 $1,158,844 $ 720,413
Interest
bearing
transaction
deposits 1,590,319 1,696,598 1,311,779 1,666,689 1,321,105
Interest
bearing
Public Fund
deposits 791,825 837,751 617,017 780,947 670,477
Time
deposits 1,571,129 1,504,343 1,143,691 1,494,748 1,116,876
----------------------------------------------------------
Total
deposits 5,051,988 5,216,448 3,801,704 5,101,228 3,828,870
Other
borrowed
funds 304,686 210,388 335,758 267,666 304,192
Other net
interest-
free funding
sources 152,035 178,810 198,399 155,873 176,384
----------------------------------------------------------
Total average
funding
sources $5,508,709 $5,605,646 $4,335,861 $5,524,767 $4,309,446
Loans:
Commercial/
real estate
loans $1,759,173 $1,699,768 $1,584,244 $1,711,525 $1,533,208
Mortgage
loans 423,610 410,522 430,615 414,768 418,479
Direct
consumer
loans 470,771 463,977 504,362 468,196 505,899
Indirect
consumer
loans 347,404 348,463 335,482 349,076 324,122
Finance
Company
loans 79,483 71,461 64,006 71,868 62,295
----------------------------------------------------------
Total
average
loans $3,080,442 $2,994,191 $2,918,709 $3,015,434 $2,844,003
----------------------------------------------------------
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Three Months Ended
-----------------------------
09/30/06
-----------------------------
Interest Volume Rate
--------- ---------- ----
Average Earning Assets
Commercial & real estate loans (TE) $ 32,520 $1,759,173 7.34%
Mortgage loans 6,411 423,610 6.05%
Consumer loans 19,547 897,658 8.64%
Loan fees & late charges 2,710 -- 0.00%
--------- ---------- ----
Total loans (TE) 61,188 3,080,442 7.89%
US treasury securities 855 67,966 4.99%
US agency securities 16,456 1,356,478 4.85%
CMOs 1,439 145,494 3.96%
Mortgage backed securities 6,231 511,372 4.87%
Municipals (TE) 2,935 174,744 6.72%
Other securities 1,042 78,188 5.33%
--------- ---------- ----
Total securities (TE) 28,958 2,334,242 4.96%
Total short-term investments 1,128 94,026 4.76%
Average earning assets yield (TE) $ 91,275 $5,508,709 6.60%
Interest-bearing Liabilities
Interest-bearing transaction deposits $ 3,955 $1,590,319 0.99%
Time deposits 16,353 1,571,129 4.13%
Public Funds 8,629 791,825 4.32%
--------- ---------- ----
Total interest bearing deposits 28,936 3,953,272 2.90%
Customer repos 2,785 271,582 4.07%
Other borrowings 267 33,104 3.20%
--------- ---------- ----
Total borrowings 3,052 304,686 3.97%
Total interest bearing liab cost $ 31,988 $4,257,959 2.98%
Noninterest-bearing deposits -- 1,098,716 --
Other net interest-free funding sources -- 152,035 --
Total Cost of Funds $ 31,988 $5,508,709 2.30%
Net Interest Spread (TE) $ 59,286 -- 3.62%
Net Interest Margin (TE) $ 59,286 $5,508,709 4.29%
-----------------------------
06/30/06
-----------------------------
Interest Volume Rate
--------- ---------- ----
Average Earning Assets
Commercial & real estate loans (TE) $ 30,613 $1,699,768 7.22%
Mortgage loans 5,980 410,522 5.83%
Consumer loans 18,356 883,901 8.33%
Loan fees & late charges 2,476 -- 0.00%
--------- ---------- ----
Total loans (TE) 57,425 2,994,191 7.69%
US treasury securities 454 42,028 4.33%
US agency securities 15,954 1,346,963 4.74%
CMOs 1,626 164,825 3.95%
Mortgage backed securities 5,643 484,002 4.66%
Municipals (TE) 2,673 158,553 6.76%
Other securities 944 76,641 4.93%
--------- ---------- ----
Total securities (TE) 27,294 2,273,012 4.80%
Total short-term investments 3,656 338,443 4.33%
Average earning assets yield (TE) $ 88,375 $5,605,646 6.32%
Interest-bearing Liabilities
Interest-bearing transaction deposits $ 3,780 $1,696,598 0.89%
Time deposits 14,451 1,504,343 3.85%
Public Funds 8,658 837,751 4.15%
--------- ---------- ----
Total interest bearing deposits 26,888 4,038,692 2.67%
Customer repos 1,573 200,973 3.14%
Other borrowings 174 9,415 7.43%
--------- ---------- ----
Total borrowings 1,747 210,388 3.33%
Total interest bearing liab cost $ 28,636 $4,249,079 2.70%
Noninterest-bearing deposits -- 1,177,756 --
Other net interest-free funding sources -- 178,810 --
Total Cost of Funds $ 28,636 $5,605,646 2.05%
Net Interest Spread (TE) $ 59,740 -- 3.61%
Net Interest Margin (TE) $ 59,740 $5,605,646 4.27%
-----------------------------
09/30/05
-----------------------------
Interest Volume Rate
--------- ---------- ----
Average Earning Assets
Commercial & real estate loans (TE) $ 25,770 $1,584,244 6.46%
Mortgage loans 5,921 430,615 5.50%
Consumer loans 17,772 903,850 7.80%
Loan fees & late charges 2,183 -- 0.00%
--------- ---------- ----
Total loans (TE) 51,646 2,918,709 7.03%
US treasury securities 62 11,296 2.17%
US agency securities 4,834 464,450 4.16%
CMOs 2,251 229,934 3.92%
Mortgage backed securities 4,773 436,733 4.37%
Municipals (TE) 2,792 160,502 6.96%
Other securities 733 61,304 4.78%
--------- ---------- ----
Total securities (TE) 15,444 1,364,219 4.53%
Total short-term investments 416 52,933 3.12%
Average earning assets yield (TE) $ 67,506 $4,335,861 6.19%
Interest-bearing Liabilities
Interest-bearing transaction deposits $ 2,317 $1,311,779 0.70%
Time deposits 10,222 1,143,691 3.55%
Public Funds 4,740 617,017 3.05%
--------- ---------- ----
Total interest bearing deposits 17,279 3,072,488 2.23%
Customer repos 1,467 248,505 2.34%
Other borrowings 913 87,253 4.15%
--------- ---------- ----
Total borrowings 2,380 335,758 2.81%
Total interest bearing liab cost $ 19,659 $3,408,246 2.29%
Noninterest-bearing deposits -- 729,216 --
Other net interest-free funding sources -- 198,399 --
Total Cost of Funds $ 19,659 $4,335,861 1.80%
Net Interest Spread (TE) $ 47,847 -- 3.91%
Net Interest Margin (TE) $ 47,847 $4,335,861 4.40%
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited) ---------------------------
Nine Months Ended
---------------------------
9/30/2006
---------------------------
Interest Volume Rate
-------- ---------- ----
Average Earning Assets
Commercial & real estate loans (TE) $ 91,770 $1,711,525 7.17%
Mortgage loans 18,289 414,768 5.88%
Consumer loans 55,376 889,140 8.33%
Loan fees & late charges 7,506 -- 0.00%
-------- ---------- ----
Total loans (TE) 172,941 3,015,434 7.66%
US treasury securities 1,936 56,722 4.56%
US agency securities 46,196 1,299,845 4.74%
CMOs 4,874 164,723 3.95%
Mortgage backed securities 17,393 491,177 4.72%
Municipals (TE) 8,344 165,533 6.72%
Other securities 2,859 76,068 5.01%
-------- ---------- ----
Total securities (TE) 81,602 2,254,068 4.83%
Total short-term investments 8,684 255,265 4.55%
Average earning
assets yield (TE) $263,226 $5,524,767 6.36%
Interest-Bearing Liabilities
Interest-bearing transaction deposits $ 11,001 $1,666,689 0.88%
Time deposits 43,809 1,494,748 3.92%
Public Funds 24,036 780,947 4.11%
-------- ---------- ----
Total interest bearing deposits 78,845 3,942,384 2.67%
Customer repos 5,999 234,576 3.42%
Other borrowings 1,053 33,090 4.25%
-------- ---------- ----
Total borrowings 7,051 267,666 3.52%
Total interest bearing liab cost $ 85,897 $4,210,050 2.73%
Noninterest-bearing deposits -- 1,158,844 0.00%
Other net interest-free funding sources -- 155,873 --
Total Cost of Funds $ 85,897 $5,524,767 2.08%
Net Interest Spread (TE) $177,329 -- 3.64%
Net Interest Margin (TE) $177,329 $5,524,767 4.28%
---------------------------
9/30/2005
---------------------------
Interest Volume Rate
-------- ---------- ----
Average Earning Assets
Commercial & real estate loans (TE) $ 71,847 $1,533,208 6.26%
Mortgage loans 17,504 418,479 5.58%
Consumer loans 51,200 892,316 7.67%
Loan fees & late charges 6,510 -- 0.00%
-------- ---------- ----
Total loans (TE) 147,061 2,844,003 6.91%
US treasury securities 182 11,144 2.19%
US agency securities 14,096 459,784 4.09%
CMOs 7,546 253,121 3.97%
Mortgage backed securities 14,490 439,270 4.40%
Municipals (TE) 8,504 162,160 6.99%
Other securities 2,189 62,664 4.66%
-------- ---------- ----
Total securities (TE) 47,008 1,388,143 4.52%
Total short-term investments 1,507 77,300 2.61%
Average earning
assets yield (TE) $195,576 $4,309,446 6.06%
Interest-Bearing Liabilities
Interest-bearing transaction deposits $ 6,367 $1,321,105 0.64%
Time deposits 29,151 1,116,876 3.49%
Public Funds 12,900 670,477 2.57%
-------- ---------- ----
Total interest bearing deposits 48,417 3,108,457 2.08%
Customer repos 3,226 231,736 1.86%
Other borrowings 2,265 72,455 4.18%
-------- ---------- ----
Total borrowings 5,491 304,192 2.41%
Total interest bearing liab cost $ 53,908 $3,412,649 2.11%
Noninterest-bearing deposits -- 720,413 --
Other net interest-free funding sources -- 176,384 --
Total Cost of Funds $ 53,908 $4,309,446 1.67%
Net Interest Spread (TE) $141,667 -- 3.95%
Net Interest Margin (TE) $141,667 $4,309,446 4.39%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
------------------------------------------------
2004 2005
------- --------------------------------------
4Q 1Q 2Q 3Q 4Q
------- --------------------------------------
Per Common Share
Data
----------------
Earnings per share:
Basic $ 0.49 $ 0.48 $ 0.56 $ 0.04 $ 0.59
Diluted $ 0.48 $ 0.47 $ 0.55 $ 0.04 $ 0.58
Cash dividends
per share $ 0.165 $ 0.165 $ 0.165 $ 0.195 $ 0.195
Book value per
share
(period-end) $ 14.32 $ 14.16 $ 14.87 $ 14.52 $ 14.78
Tangible book
value per share
(period-end) $ 12.16 $ 11.99 $ 12.73 $ 12.25 $ 12.55
Weighted average
number of shares:
Basic 32,467 32,463 32,396 32,308 32,313
Diluted 33,076 33,019 32,928 32,940 32,980
Period-end number
of shares 32,440 32,463 32,310 32,309 32,301
Market data:
High closing
price $ 34.83 $ 34.20 $ 34.87 $ 37.84 $ 39.90
Low closing
price $ 30.00 $ 30.25 $ 28.25 $ 29.93 $ 31.08
Period end
closing price $ 33.46 $ 32.50 $ 34.40 $ 34.14 $ 37.81
Trading volume 2,781 3,286 3,527 8,760 6,829
Other Period-
end Data
----------------
FTE headcount 1,767 1,766 1,813 1,590 1,735
Tangible common
equity $394,389 $389,344 $411,203 $395,843 $405,216
Tier I capital $399,320 $408,163 $416,312 $407,075 $420,281
Goodwill $ 55,409 $ 55,409 $ 55,409 $ 61,428 $ 61,418
Amortizable
intangibles $ 12,263 $ 12,510 $ 11,746 $ 9,928 $ 9,204
Mortgage servicing
intangibles $ 2,520 $ 2,288 $ 2,082 $ 1,860 $ 1,577
Common shares
repurchased for
publicly
announced plans -- 40 96 12 --
Performance Ratios
------------------
Return on average
assets 1.39% 1.32% 1.52% 0.12% 1.39%
Return on average
common equity 13.54% 13.32% 15.27% 1.18% 15.98%
Earning asset
yield (TE) 6.00% 5.90% 6.08% 6.19% 6.14%
Total cost of
funds 1.47% 1.55% 1.66% 1.80% 1.70%
Net interest
margin (TE) 4.53% 4.35% 4.42% 4.40% 4.44%
Non-interest
expense as a
percent of total
revenue (TE)
before amortization
of purchased
intangibles, net
storm-related
gain/(loss),
gain on sale of
credit card
merchant and
securities
transactions 54.95% 59.99% 57.83% 60.85% 56.89%
Common equity
(period-end) as
a percent of
total assets
(period-end) 9.96% 9.64% 10.03% 9.55% 8.02%
Leverage (Tier I)
ratio 8.97% 8.75% 8.83% 8.64% 7.85%
Tangible common
equity ratio 8.58% 8.28% 8.71% 8.17% 6.89%
Net charge-offs
as a percent of
average loans 0.56% 0.33% 0.24% 0.23% 0.41%
Allowance for
loan losses as
a percent of
period-end loans 1.48% 1.48% 1.45% 2.57% 2.49%
Allowance for
loan losses to
NPAs + loans 90
days past due 251.85% 323.66% 284.75% 392.70% 195.50%
Loan/deposit
ratio 75.19% 72.40% 73.63% 76.77% 66.44%
Non-interest
income excluding
net storm-related
gain/(loss),
gain on sale of
credit card
merchant and
securities trans-
actions as a
percent of total
revenue (TE) 32.37% 32.77% 34.06% 31.10% 29.68%
------------------------------
2006
------------------------------
1Q 2Q 3Q
------------------------------
Per Common Share Data
---------------------
Earnings per share:
Basic $ 0.68 $ 0.68 $ 1.11
Diluted $ 0.67 $ 0.66 $ 1.08
Cash dividends per share $ 0.195 $ 0.220 $ 0.240
Book value per share (period-end) $ 15.06 $ 15.12 $ 16.64
Tangible book value per share
(period-end) $ 12.85 $ 12.94 $ 14.47
Weighted average number of shares:
Basic 32,393 32,531 32,566
Diluted 33,088 33,322 33,333
Period-end number of shares 32,494 32,555 32,584
Market data:
High closing price $ 46.67 $ 57.19 $ 56.79
Low closing price $ 37.75 $ 44.02 $ 49.71
Period end closing price $ 46.52 $ 56.00 $ 53.55
Trading volume 3,990 8,737 8,135
Other Period-end Data
---------------------
FTE headcount 1,768 1,777 1,788
Tangible common equity $417,684 $421,369 $471,387
Tier I capital $440,302 $457,738 $487,668
Goodwill $ 61,418 $ 59,060 $ 59,683
Amortizable intangibles $ 8,725 $ 10,575 $ 9,938
Mortgage servicing intangibles $ 1,384 $ 1,256 $ 1,093
Common shares repurchased for
publicly announced plans 17 22 --
Performance Ratios
------------------
Return on average assets 1.49% 1.45% 2.36%
Return on average common equity 18.34% 17.89% 27.58%
Earning asset yield (TE) 6.17% 6.32% 6.60%
Total cost of funds 1.88% 2.05% 2.30%
Net interest margin (TE) 4.30% 4.27% 4.29%
Non-interest expense as a percent
of total revenue (TE) before
amortization of purchased
intangibles, net storm-related
gain/(loss), gain on sale of
credit card merchant and
securities transactions 58.30% 59.13% 58.76%
Common equity (period-end) as
a percent of total assets (period-end) 7.82% 8.00% 8.86%
Leverage (Tier I) ratio 7.45% 7.59% 8.15%
Tangible common equity ratio 6.75% 6.92% 7.79%
Net charge-offs as a
percent of average loans -0.01% 0.40% 0.34%
Allowance for loan losses as
a percent of period-end loans 2.49% 2.33% 1.54%
Allowance for loan losses to
NPAs + loans 90 days past due 432.85% 457.10% 494.65%
Loan/deposit ratio 59.00% 57.40% 60.97%
Non-interest income excluding
net storm-related gain/(loss),
gain on sale of credit card
merchant and securities transactions
as a percent of total revenue (TE) 29.92% 30.28% 30.18%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except per share data and FTE headcount)
----------------------------------------------------------
(unaudited) 2004 2005
---------- ----------------------------------------------
4Q 1Q 2Q 3Q 4Q
---------- ----------------------------------------------
Asset Quality
Information
---------------
Non-accrual
loans $ 7,480 $ 6,335 $ 8,052 $ 10,373 $ 10,617
Foreclosed
assets 3,513 3,591 2,567 2,973 1,898
----------------------------------------------------------
Total non-
performing
assets $ 10,993 $ 9,926 $ 10,619 $ 13,346 $ 12,515
Non-per-
forming
assets as a
percent of
loans and
foreclosed
assets 0.40% 0.36% 0.37% 0.45% 0.42%
Accruing
loans 90
days past
due $ 5,160 $ 2,798 $ 3,914 $ 6,156 $ 25,622
Accruing
loans 90
days past
due as a
percent of
loans 0.19% 0.10% 0.14% 0.21% 0.86%
Non-per-
forming
assets +
accruing
loans 90
days past
due to loans
and fore-
closed
assets 0.59% 0.46% 0.51% 0.65% 1.28%
Net charge-
offs $ 3,839 $ 2,260 $ 1,691 $ 1,704 $ 3,104
Net charge-
offs as a
percent of
average
loans 0.56% 0.33% 0.24% 0.23% 0.41%
Allowance
for loan
losses $ 40,682 $ 41,182 $ 41,382 $ 76,584 $ 74,558
Allowance
for loan
losses as a
percent of
period-end
loans 1.48% 1.48% 1.45% 2.57% 2.49%
Allowance for
loan losses
to NPAs +
accruing
loans 90
days past
due 251.85% 323.66% 284.75% 392.70% 195.50%
Provision
for loan
losses $ 5,796 $ 2,760 $ 1,891 $ 36,905 $ 1,079
Net Charge-off
Information
--------------
Net charge-offs:
Commercial/
real estate
loans $ 1,003 $ 770 $ 202 $ (17) $ 332
Mortgage
loans 38 68 (5) 7 (7)
Direct
consumer
loans 1,173 501 491 861 1,831
Indirect
consumer
loans 910 540 538 342 272
Finance
company
loans 715 381 465 511 676
----------------------------------------------------------
Total net
charge-offs
(including
storm-
related) $ 3,839 $ 2,260 $ 1,691 $ 1,704 $ 3,104
Storm-related
net charge-
offs -- -- -- -- 2,350
----------------------------------------------------------
Total net
charge-offs
(excluding
storm-
related) $ 3,839 $ 2,260 $ 1,691 $ 1,704 $ 754
----------------------------------------------------------
Average
loans:
Commercial/
real estate
loans $1,439,074 $1,491,008 $1,523,348 $1,584,244 $1,660,804
Mortgage
loans 408,535 407,258 417,307 430,615 442,977
Direct
consumer
loans 498,336 503,700 509,628 504,362 489,150
Indirect
consumer
loans 307,413 313,542 323,100 335,482 342,203
Finance
Company
loans 60,604 60,720 62,124 64,006 63,663
-----------------------------------------------------------
Total
average
loans $2,713,963 $2,776,229 $2,835,506 $2,918,709 $2,998,797
Net charge-
offs to
average loans:
---------------
Commercial/
real estate
loans 0.28% 0.21% 0.05% 0.00% 0.08%
Mortgage
loans 0.04% 0.07% 0.00% 0.01% -0.01%
Direct
consumer
loans 0.94% 0.40% 0.39% 0.68% 1.49%
Indirect
consumer
loans 1.18% 0.70% 0.67% 0.40% 0.32%
Finance
Company
loans 4.69% 2.54% 3.00% 3.17% 4.21%
----------------------------------------------------------
Total net
charge-offs
to average
loans (excl
storm-
related) 0.56% 0.33% 0.24% 0.23% 0.41%
----------------------------------------------------------
Total net
charge-offs
to average
loans (incl
storm-
related) 0.56% 0.33% 0.24% 0.23% 0.10%
----------------------------------------------------------
------------------------------------
2006
------------------------------------
1Q 2Q 3Q
------------------------------------
Asset Quality Information
-------------------------
Non-accrual loans $ 8,676 $ 7,237 $ 5,179
Foreclosed assets 1,779 1,606 970
------------------------------------
Total non-performing assets $ 10,455 $ 8,843 $ 6,149
Non-performing assets as a
percent of loans and
foreclosed assets 0.35% 0.29% 0.20%
Accruing loans 90 days past due $ 6,632 $ 6,681 $ 3,626
Accruing loans 90 days past due
as a percent of loans 0.22% 0.22% 0.12%
Non-performing assets + accruing
loans 90 days past due to loans
and foreclosed assets 0.57% 0.51% 0.31%
Net charge-offs $ (108) $ 3,001 $ 2,608
Net charge-offs as
a percent of average loans -0.01% 0.40% 0.34%
Allowance for loan losses $ 73,961 $ 70,960 $ 48,352
Allowance for loan losses as a
percent of period-end loans 2.49% 2.33% 1.54%
Allowance for loan losses to
NPAs + accruing loans 90 days
past due 432.85% 457.10% 494.65%
Provision for loan losses $ (705) -- $ (20,000)
Net Charge-off Information
--------------------------
Net charge-offs:
Commercial/real estate loans $ (1,769) $ 620 $ 522
Mortgage loans 181 28 367
Direct consumer loans 579 1,681 1,003
Indirect consumer loans 653 391 294
Finance company loans 248 281 422
------------------------------------
Total net charge-offs
(including storm-related) $ (108) $ 3,001 $ 2,608
Storm-related net charge-offs 597 1,133 284
------------------------------------
Total net charge-offs
(excluding storm-related) $ (705) $ 1,868 $ 2,324
------------------------------------
Average loans:
Commercial/real estate loans $1,674,706 $1,699,768 $1,759,173
Mortgage loans 410,023 410,522 423,610
Direct consumer loans 469,832 463,977 470,771
Indirect consumer loans 351,405 348,463 347,404
Finance Company loans 64,496 71,461 79,483
------------------------------------
Total average loans $2,970,461 $2,994,191 $3,080,442
Net charge-offs to average loans:
Commercial/real estate loans -0.43% 0.15% 0.12%
Mortgage loans 0.18% 0.03% 0.34%
Direct consumer loans 0.50% 1.45% 0.85%
Indirect consumer loans 0.75% 0.45% 0.34%
Finance Company loans 1.56% 1.58% 2.11%
------------------------------------
Total net charge-offs to average
loans (excl storm-related) -0.01% 0.40% 0.34%
------------------------------------
Total net charge-offs to average
loans (incl storm-related) -0.10% 0.25% 0.30%
------------------------------------
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
----------------------------------------------------------
(unaudited) 2004 2005
---------- ----------------------------------------------
4Q 1Q 2Q 3Q 4Q
---------- ----------------------------------------------
Income Statement
----------------
Interest
income $ 59,190 $ 60,531 $ 64,027 $ 65,644 $ 73,429
Interest
income (TE) 61,051 62,302 65,767 67,506 75,433
Interest
expense 15,014 16,289 17,961 19,659 20,911
----------------------------------------------------------
Net interest
income (TE) 46,037 46,013 47,807 47,847 54,522
Provision
for loan
losses 5,796 2,760 1,891 36,905 1,079
Non-interest
income
excluding
net storm-
related
gain/(loss)
and
securities
transactions 22,037 22,427 24,695 21,600 23,016
Net storm-
related
gain/(loss) -- -- -- 12,276 (5,692)
Securities
transactions
gains/
(losses) 4 7 (15) (18) (27)
Non-interest
expense 37,945 41,642 42,505 42,770 44,626
----------------------------------------------------------
Income
before
income
taxes 22,475 22,273 26,350 168 24,112
Income tax
expense 6,684 6,836 8,256 (1,267) 5,047
----------------------------------------------------------
Net income $ 15,791 $ 15,438 $ 18,094 $ 1,435 $ 19,065
==========================================================
Non-interest Income
and Operating Expense
----------------------
Service
charges on
deposit
accounts $ 11,062 $ 9,490 $ 10,459 $ 7,975 $ 6,850
Trust fees 2,487 2,541 2,859 2,761 2,946
Debit card
& merchant
fees 1,172 1,030 1,074 1,055 1,717
Insurance
fees 1,824 3,881 3,499 4,883 4,837
Investment
& annuity
fees 581 1,188 1,547 1,304 1,037
ATM fees 1,119 1,372 1,154 871 805
Secondary
mortgage
market
operations 1,489 499 676 377 670
Other income 2,302 2,426 3,428 2,374 4,154
----------------------------------------------------------
Non-interest
income
excluding
net storm-
related
gain/(loss)
and
securities
transactions $22,037 $ 22,427 $ 24,695 $ 21,600 $ 23,016
Net storm-
related
gain/(loss) -- -- -- 12,276 (5,692)
Securities
transactions
gains/
(losses) 4 7 (15) (18) (27)
----------------------------------------------------------
Total
non-interest
income
including
storm-related
gain/(loss)
and
securities
transactions $22,041 $ 22,433 $ 24,680 $ 33,858 $ 17,298
==========================================================
Personnel
expense $21,706 $ 22,379 $ 22,925 $ 24,275 $ 24,580
Occupancy
expense
(net) 2,627 2,495 2,576 2,617 3,237
Equipment
expense 2,548 2,357 2,366 2,319 2,511
Other
operating
expense 10,526 13,828 14,059 13,044 13,780
Amortization
of
intangibles 538 584 578 514 518
----------------------------------------------------------
Total
non-interest
expense $37,945 $ 41,642 $ 42,505 $ 42,770 $ 44,626
----------------------------------------------------------
------------------------------------
(unaudited) 2006
------------------------------------
1Q 2Q 3Q
------------------------------------
Income Statement
----------------
Interest income $ 81,590 $ 86,404 $ 89,233
Interest income (TE) 83,563 88,375 91,275
Interest expense 25,273 28,636 31,988
------------------------------------
Net interest income (TE) 58,290 59,740 59,286
Provision for loan losses (705) -- (20,000)
Non-interest income excluding net
storm-related gain/(loss)
and securities transactions 24,890 25,942 25,627
Net storm-related gain/(loss) -- -- --
Securities transactions
gains/(losses) 118 -- 110
Non-interest expense 49,165 51,172 50,336
------------------------------------
Income before income taxes 32,865 32,536 52,645
Income tax expense 10,854 10,539 16,614
------------------------------------
Net income $ 22,011 $ 21,998 $ 36,031
====================================
Non-interest Income
and Operating Expense
-----------------------
Service charges on deposit
accounts $ 7,884 $ 9,223 $ 9,719
Trust fees 3,078 3,409 3,175
Debit card & merchant fees 1,709 1,863 1,744
Insurance fees 5,159 4,596 4,146
Investment & annuity fees 1,264 1,591 1,595
ATM fees 1,294 1,273 1,223
Secondary mortgage market
operations 817 749 1,018
Other income 3,684 3,239 3,009
------------------------------------
Non-interest income excluding net
storm-related gain/(loss)
and securities transactions $ 24,890 $ 25,942 $ 25,627
Net storm-related gain/(loss) -- -- --
Securities transactions
gains/(losses) 118 -- 110
------------------------------------
Total non-interest income
including storm-related
gain/(loss) and securities
transactions $ 25,008 $ 25,942 $ 25,737
====================================
Personnel expense $ 26,202 $ 26,400 $ 27,059
Occupancy expense (net) 3,659 3,474 2,882
Equipment expense 2,668 2,816 2,647
Other operating expense 15,961 17,976 17,304
Amortization of intangibles 675 507 445
------------------------------------
Total non-interest expense $ 49,165 $ 51,172 $ 50,336
------------------------------------