GULFPORT, Miss., April 17, 2007 (PRIME NEWSWIRE) -- Hancock Holding Company (Nasdaq:HBHC) announced earnings for the first quarter ended March 31, 2007. Hancock's first quarter 2007 earnings were $19.2 million, a decrease of $2.8 million, or 13 percent, from the first quarter of 2006. Diluted earnings per share for the first quarter of 2007 were $0.58, a decrease of $0.09 from the same quarter a year ago.
For comparative purposes, net income for 2006 was affected by several items related to the impact of Hurricane Katrina, which made landfall in the Company's operating region on August 29, 2005. In the third quarter of 2006, the Company reversed $20.0 million from the storm-related allowance for loan losses due to better than expected loss experience with storm-impacted credits. In addition, the Company negotiated a final settlement with the primary property and casualty insurance provider and recognized a $5.1 million gain in 2006's fourth quarter. There were no significant storm-related items in the first and second quarters of 2006.
Recovery Update
Hancock Holding Company Chief Executive Officers Carl J. Chaney and John M. Hairston both expressed gratitude to all Hancock family members for the completion of recovery efforts from the aftermath of the 2005 storm. By April 30, 2007, the Company will complete the task of moving back into the newly restored corporate headquarters building at One Hancock Plaza.
In addition, work is progressing on the Company's new data center, located on high ground north of Interstate 10, with an expected completion date of June 1, 2007. Hancock has also completed the necessary and prudent steps of ensuring continuity of customer and business-related operations in the event of any potential disruptions.
First Quarter 2007 Financial Highlights
* Net Income and Returns: Hancock's net income for the first
quarter of 2007 was $19.2 million compared to $22.0 million for
the same quarter a year ago. Return on average assets for the
quarter was 1.32 percent compared to 1.49 percent for 2006's
first quarter. Return on average common equity was 13.77 percent
compared to 18.34 percent for the same quarter a year ago.
* Asset Quality & Allowance for Loan Losses: Hancock recorded a
provision for loan losses of $1.2 million in the first quarter,
which when combined with the quarter's net charge-offs of $1.47
million, resulted in a $0.3 million reduction in the allowance
for loan losses between December 31, 2006 and March 31, 2007.
This provision was necessary to further adjust the allowance to
the level dictated by the Company's reserving methodologies. Net
charge-offs for the first quarter of 2007 were $1.47 million, or
0.18 percent of average loans, down $58,000 from the $1.52
million, or 0.19 percent of average loans, reported for the
fourth quarter of 2006. Net charge-offs for the first quarter of
2006 were a negative $0.11 million or negative 0.01 percent of
average loans. Non-performing assets as a percent of total loans
and foreclosed assets was 0.16 percent at March 31, 2007,
compared to 0.13 percent at December 31, 2006. Compared to the
first quarter of 2006, the ratio of non-performing assets as a
percent of total loans and foreclosed assets was down 19 basis
points from the 0.35 percent reported at March 31, 2006.
Non-performing assets increased $1.0 million from December 31,
2006, reflecting higher levels of non-accrual loans. The
Company's ratio of accruing loans 90 days or more past due to
total loans was 0.18 percent at March 31, 2007, compared to 0.08
percent at December 31, 2006, and to 0.22 percent at March 31,
2006. The Company's allowance for loan losses was $46.5 million
at March 31, 2007, down $.3 million from the $46.8 million
reported at December 31, 2006, and $27.4 million lower than the
$73.9 million reported at March 31, 2006. The ratio of the
allowance for loan losses as a percent of period-end loans was
1.41 percent at March 31, 2007, and 1.44 percent at December 31,
2006. The allowance coverage ratio (allowance for loan losses to
non-performers and past dues) was 414 percent for the first
quarter of 2007, as compared to 433 percent for the first quarter
of 2006.
* Loans: At March 31, 2007, Hancock's total loans were $3.3
billion, which represented an increase of $347.7 million, or 12
percent, from March 31, 2006. Period-end loans were up $49.0
million, or 2 percent, compared to December 31, 2006. Average
loans were up $91.5 million, or 12 percent annualized, from the
fourth quarter of 2006. Of that increase, approximately $50
million of growth was in Mississippi, $31 million in Louisiana,
$9 million in Florida, and $2 million in Alabama. The majority of
the increase in average loans compared to last quarter was in
commercial purpose loans (approximately $76.5 million).
* Deposits: Period-end deposits for the first quarter were $4.9
billion, down $395.2 million, or 7 percent, from March 31, 2006,
and were down $107.2 million, or 2 percent, from December 31,
2006. Average deposits were up $20.2 million, or 2 percent
annualized, from the fourth quarter of 2006. The majority of the
increase in average deposits was in public fund deposits (up
significantly due to seasonal inflows of $78.6 million) and time
deposits (up $0.8 million). Offsetting these increases was a
decrease in transaction deposits ($59.2 million). The slower
growth in deposits compared to the prior quarter and same quarter
a year ago was the result of the continued rebuilding efforts in
the region following Hurricane Katrina and the slower than
expected pace of federal grants to homeowners.
* Net Interest Income: Net interest income (te) for the first
quarter decreased $4.5 million, or 8 percent, from the first
quarter of 2006, and was $1.6 million, or 3 percent, lower than
the fourth quarter of 2006. The Company's net interest margin
(te) was 4.04 percent in the first quarter, 26 basis points
narrower than the same quarter a year ago and 2 basis points
narrower than the previous quarter. Compared to the same quarter
a year ago, the primary driver of the $4.5 million decrease in
net interest income (te) was a $104.7 million, or 2 percent,
decrease in average earning assets mainly from a reduction in
total borrowings of $82.0 million, or 29 percent, and a decrease
in average deposits of $39.8 million, or 0.8 percent. As
mentioned, the net interest margin (te) narrowed 26 basis points
as the decrease in the average earning asset yield (46 basis
points) did not offset the increase in total funding costs (72
basis points). The Company's level of net interest income (te) in
the first quarter decreased $1.6 million from the prior quarter.
The net interest margin (te) narrowed 2 basis points from the
prior quarter as the yield on average earning assets decreased 10
basis points, while total funding costs were up 12 basis points.
* Non-interest Income & Operating Expense: Non-interest income for
the first quarter was up $1.0 million, or 4 percent, compared to
the same quarter a year ago, but was down $1.6 million, or 6
percent, compared to the fourth 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 $1.3 million, or 17 percent) and trust fees (up $0.6
million, or 20 percent). The decrease in noninterest income for
the first quarter (excluding securities transactions) compared to
the prior quarter was due to decreases in insurance fees (down
$1.0 million) and other income (down $0.8 million). Operating
expenses for the first quarter were $0.2 million, or 0.4 percent,
higher compared to the same quarter a year ago and were $0.7
million, or 1 percent, lower than the previous quarter. The
increase from the same quarter a year ago was reflected in higher
levels of personnel expense (up $0.4 million) and occupancy
expense (up $0.4 million).
Branch Expansion
During the first quarter of 2007, the Company received final regulatory approval for a commercial banking charter in the state of Alabama. Hancock Bank of Alabama began operations in February 2007 with one location in an existing loan production office in Mobile, AL. A total of four branch locations will open and operate in either leased or modular facilities while permanent branch facilities are constructed. These facilities will open over the course of the next 90 days. The Company plans to open an additional branch facility in downtown New Orleans, LA (August 2007) and as many as three additional branch facilities in Pensacola, FL (first quarter 2008).
Stock Repurchases
Approximately 228,000 of the Company's shares were repurchased during the first quarter of 2007 under the Stock Repurchase Plan that was approved in 2000. The remaining plan shares available for repurchase at March 31, 2007, were 1.3 million shares. Management intends to continue repurchasing shares as long as market conditions are conducive to that action.
About Hancock Holding Company & Hancock Bank
Hancock Holding Company -- parent company of Hancock Bank (Mississippi), Hancock Bank of Alabama, Hancock Bank of Florida, and Hancock Bank of Louisiana -- has assets of more than $5.8 billion Bank subsidiaries include Hancock Investment Services, Inc., Hancock Insurance Agency, and Harrison Finance Company. Additionally, the company operates corporate trust offices in Gulfport, MS, Jackson, MS, New Orleans, and Baton Rouge. Hancock's trust department, a division of the wealth management group, has assets of $7.1 billion, with assets under management of $2.3 billion, as of December 31, 2006.
Founded October 10, 1899, Hancock Bank 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 consistently ranks as one of the country's strongest, safest financial institutions, according to Veribanc, Inc., and BauerFinancial Services, Inc. Thomson Financial also recently listed Hancock as the ninth largest corporate trustee bank in the U.S. More corporate information and Internet banking 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
---------------------------------
3/31/2007 12/31/2006 3/31/2006
---------------------------------
Per Common Share Data
---------------------
Earnings per share:
Basic $ 0.59 $ 0.67 $ 0.68
Diluted $ 0.58 $ 0.65 $ 0.67
Cash dividends per share $ 0.240 $ 0.240 $ 0.195
Book value per share (period-end) $ 17.27 $ 17.09 $ 15.06
Tangible book value per share
(period-end) $ 15.05 $ 14.87 $ 12.85
Weighted average number of shares:
Basic 32,665 32,632 32,393
Diluted 33,299 33,378 33,088
Period-end number of shares 32,518 32,666 32,494
Market data:
High price $ 54.09 $ 56.00 $ 46.67
Low price $ 41.88 $ 50.85 $ 37.75
Period end closing price $ 43.98 $ 52.84 $ 46.52
Trading volume 8,577 6,393 3,990
Other Period-end Data
---------------------
FTE headcount 1,929 1,848 1,768
Tangible common equity $489,430 $485,778 $417,684
Tier I capital $513,229 $510,638 $440,302
Goodwill $ 62,277 $ 62,277 $ 61,418
Amortizable intangibles $ 8,991 $ 9,414 $ 8,725
Mortgage servicing intangibles $ 829 $ 941 $ 1,384
Common shares repurchased for
publicly announced plans 228 -- 17
Performance Ratios
------------------
Return on average assets 1.32% 1.44% 1.49%
Return on average common equity 13.77% 15.54% 18.34%
Earning asset yield (TE) 6.64% 6.54% 6.17%
Total cost of funds 2.60% 2.48% 1.88%
Net interest margin (TE) 4.04% 4.06% 4.30%
Noninterest expense as a percent
of total revenue (TE) before
amortization of purchased
intangibles, net storm-related
gain/(loss) and securities
transactions 61.38% 59.79% 58.29%
Common equity (period-end) as a
percent of total assets
(period-end) 9.61% 9.36% 7.82%
Leverage (Tier I) ratio 8.80% 8.63% 7.45%
Tangible common equity ratio 8.48% 8.24% 6.75%
Net charge-offs as a percent
of average loans 0.18% 0.19% -0.01%
Allowance for loan losses as
a percent of period-end loans 1.41% 1.44% 2.51%
Allowance for loan losses to
NPAs + accruing loans 90 days
past due 413.60% 694.67% 432.85%
Loan/deposit ratio 65.91% 64.34% 59.00%
Non-interest income excluding
net storm-related gain/(loss)
and securities transactions
as a percent of total revenue (TE) 32.48% 33.14% 29.92%
---------------------------------
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
------------------------------------
Three Months Ended
------------------------------------
3/31/2007 12/31/2006 3/31/2006
------------------------------------
Asset Quality Information
-------------------------
Non-accrual loans $ 4,494 $ 3,500 $ 8,676
Foreclosed assets 718 681 1,779
------------------------------------
Total non-performing assets $ 5,212 $ 4,181 $ 10,455
------------------------------------
Non-performing assets as a
percent of loans and
foreclosed assets 0.16% 0.13% 0.35%
Accruing loans 90 days past due $ 6,035 $ 2,552 $ 6,632
Accruing loans 90 days past due
as a percent of loans 0.18% 0.08% 0.22%
Non-performing assets + accruing
loans 90 days past due to loans
and foreclosed assets 0.34% 0.21% 0.58%
Net charge-offs $ 1,465 $ 1,523 ($108)
Net charge-offs as a percent
of average loans 0.18% 0.19% -0.01%
Allowance for loan losses $ 46,517 $ 46,772 $ 73,961
Allowance for loan losses as a
percent of period-end loans 1.41% 1.44% 2.51%
Allowance for loan losses to
NPAs + accruing loans 90 days
past due 413.60% 694.67% 432.85%
Provision for loan losses $ 1,211 ($57) ($705)
Allowance for Loan Losses
-------------------------
Beginning Balance $ 46,772 $ 48,352 $ 74,558
Provision for loan loss 1,211 (57) (705)
Charge-offs 3,076 4,493 3,922
Recoveries 1,611 2,970 4,030
------------------------------------
Net charge-offs 1,465 1,523 (108)
------------------------------------
Ending Balance $ 46,517 $ 46,772 $ 73,961
------------------------------------
Net Charge-off Information
--------------------------
Net charge-offs:
Commercial/real estate loans $ 168 ($137) ($1,769)
Mortgage loans 23 (11) 181
Direct consumer loans 110 493 579
Indirect consumer loans 675 395 653
Finance company loans 489 783 248
------------------------------------
Total net charge-offs $ 1,465 $ 1,523 ($108)
====================================
Average loans:
Commercial/real estate loans $1,931,966 $1,855,506 $1,674,706
Mortgage loans 426,103 428,674 410,023
Direct consumer loans 485,201 479,087 469,832
Indirect consumer loans 357,008 350,829 351,405
Finance Company loans 92,315 86,965 64,496
------------------------------------
Total average loans $3,292,593 $3,201,061 $2,970,461
Net charge-offs to average loans:
Commercial/real estate loans 0.04% -0.03% -0.43%
Mortgage loans 0.02% -0.01% 0.18%
Direct consumer loans 0.09% 0.41% 0.50%
Indirect consumer loans 0.77% 0.45% 0.75%
Finance Company loans 2.15% 3.57% 1.56%
------------------------------------
Total net charge-offs to
average loans 0.18% 0.19% -0.01%
------------------------------------
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
---------------------------------
Three Months Ended
---------------------------------
3/31/2007 12/31/2006 3/31/2006
---------------------------------
Income Statement
----------------
Interest income $85,708 $87,104 $81,590
Interest income (TE) 88,124 89,366 83,570
Interest expense 34,308 33,966 25,273
-------------------------------
Net interest income (TE) 53,816 55,400 58,297
Provision for loan losses 1,211 (57) (705)
Noninterest income excluding net
storm-related gain/(loss)
and securities transactions 25,889 27,460 24,890
Net storm-related gain/(loss) -- 5,084 --
Securities transactions
gains/(losses) 213 (5,396) 118
Noninterest expense 49,346 50,042 49,165
-------------------------------
Income before income taxes 26,945 30,300 32,865
Income tax expense 7,715 8,538 10,854
-------------------------------
Net income $19,229 $21,762 $22,011
===============================
Noninterest Income and
Noninterest Expense
----------------------
Service charges on deposit accounts $ 9,190 $ 9,402 $ 7,884
Trust fees 3,693 3,624 3,078
Debit card & merchant fees 1,778 1,983 1,709
Insurance fees 4,369 5,346 5,159
Investment & annuity fees 1,978 1,519 1,264
ATM fees 1,324 1,215 1,294
Secondary mortgage market operations 911 945 817
Other income 2,646 3,426 3,684
-------------------------------
Noninterest income excluding net
storm-related gain/(loss)
and securities transactions $25,889 $27,460 $24,890
Net storm-related gain/(loss) -- 5,084 --
Securities transactions
gains/(losses) 213 (5,396) 118
-------------------------------
Total noninterest income including
net storm-related gain/(loss)
and securities transactions $26,101 $27,147 $25,008
===============================
Personnel expense $26,563 $24,092 $26,202
Occupancy expense (net) 4,073 3,335 3,659
Equipment expense 2,272 2,665 2,668
Other operating expense 16,015 19,451 15,961
Amortization of intangibles 423 499 675
-------------------------------
Total noninterest expense $49,346 $50,042 $49,165
===============================
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
------------------------------------
Three Months Ended
------------------------------------
3/31/2007 12/31/2006 3/31/2006
------------------------------------
Period-end Balance Sheet
------------------------
Commercial/real estate loans $1,953,907 $1,912,076 $1,688,820
Mortgage loans 420,781 415,180 398,201
Direct consumer loans 469,783 479,113 447,214
Indirect consumer loans 358,844 353,032 349,412
Finance Company loans 95,334 90,236 67,300
------------------------------------
Total loans 3,298,647 3,249,637 2,950,947
Loans held for sale 21,342 16,946 20,223
Securities 1,820,772 1,903,658 2,278,613
Short-term investments 134,924 222,439 417,373
------------------------------------
Earning assets 5,275,685 5,392,680 5,667,157
------------------------------------
Allowance for loan losses (46,517) (46,772) (73,961)
Other assets 615,865 618,656 663,393
------------------------------------
Total assets $5,845,033 $5,964,565 $6,256,589
====================================
Noninterest bearing deposits $ 995,864 $1,057,358 $1,225,744
Interest bearing transaction
deposits 1,515,116 1,485,156 1,730,873
Interest bearing Public Fund
deposits 777,692 733,788 892,894
Time deposits 1,635,090 1,754,690 1,469,438
------------------------------------
Total interest bearing deposits 3,927,899 3,973,633 4,093,205
------------------------------------
Total deposits 4,923,763 5,030,991 5,318,949
Other borrowed funds 222,534 227,027 273,629
Other liabilities 137,209 148,137 174,568
Common shareholders' equity 561,527 558,410 489,443
------------------------------------
Total liabilities
& common equity $5,845,033 $5,964,565 $6,256,589
====================================
Average Balance Sheet
---------------------
Commercial/real estate loans $1,931,966 $1,855,506 $1,674,706
Mortgage loans 426,103 428,674 410,023
Direct consumer loans 485,201 479,087 469,832
Indirect consumer loans 357,008 350,829 351,405
Finance Company loans 92,315 86,965 64,496
------------------------------------
Total loans 3,292,593 3,201,061 2,970,461
Securities 1,830,557 2,153,908 2,152,958
Short-term investments 231,558 81,675 335,986
------------------------------------
Earning average assets 5,354,709 5,436,644 5,459,405
------------------------------------
Allowance for loan losses (46,704) (47,804) (74,429)
Other assets 597,921 602,104 598,546
------------------------------------
Total assets $5,905,925 $5,990,944 $5,983,521
====================================
Noninterest bearing deposits $ 983,973 $1,039,846 $1,201,186
Interest bearing transaction
deposits 1,492,405 1,495,724 1,714,514
Interest bearing Public Fund
deposits 820,652 742,063 712,394
Time deposits 1,698,218 1,697,427 1,406,969
------------------------------------
Total interest bearing deposits 4,011,274 3,935,214 3,833,877
------------------------------------
Total deposits 4,995,247 4,975,060 5,035,063
Other borrowed funds 205,737 321,292 287,738
Other liabilities 138,776 138,905 173,989
Common shareholders' equity 566,166 555,687 486,731
------------------------------------
Total liabilities
& common equity $5,905,925 $5,990,944 $5,983,521
====================================
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
------------------------------------
Three Months Ended
------------------------------------
3/31/2007 12/31/2006 3/31/2006
------------------------------------
Average Balance Sheet Mix
-------------------------
Percentage of earning
assets/funding sources:
Loans 61.49% 58.88% 54.41%
Securities 34.19% 39.62% 39.44%
Short-term investments 4.32% 1.50% 6.15%
------------------------------------
Earning average assets 100.00% 100.00% 100.00%
====================================
Noninterest bearing deposits 18.38% 19.13% 22.00%
Interest bearing transaction
deposits 27.87% 27.51% 31.40%
Interest bearing Public Fund
deposits 15.33% 13.65% 13.05%
Time deposits 31.71% 31.22% 25.77%
------------------------------------
Total deposits 93.29% 91.51% 92.23%
Other borrowed funds 3.84% 5.91% 5.27%
Other net interest-free funding
sources 2.87% 2.58% 2.50%
------------------------------------
Total average funding sources 100.00% 100.00% 100.00%
====================================
Loan mix:
Commercial/real estate loans 58.68% 57.97% 56.38%
Mortgage loans 12.94% 13.39% 13.80%
Direct consumer loans 14.74% 14.97% 15.82%
Indirect consumer loans 10.84% 10.96% 11.83%
Finance Company loans 2.80% 2.72% 2.17%
------------------------------------
Total loans 100.00% 100.00% 100.00%
====================================
Average dollars (in thousands):
Loans $3,292,593 $3,201,061 $2,970,461
Securities 1,830,557 2,153,908 2,152,958
Short-term investments 231,558 81,675 335,986
------------------------------------
Earning average assets $5,354,709 $5,436,644 $5,459,405
Noninterest bearing deposits $ 983,973 $1,039,846 $1,201,186
Interest bearing transaction
deposits 1,492,405 1,495,724 1,714,514
Interest bearing Public Fund
deposits 820,652 742,063 712,394
Time deposits 1,698,218 1,697,427 1,406,969
------------------------------------
Total deposits 4,995,247 4,975,060 5,035,063
Other borrowed funds 205,737 321,292 287,738
Other net interest-free funding
sources 153,725 140,292 136,604
------------------------------------
Total average funding sources $5,354,709 $5,436,644 $5,459,405
Loans:
Commercial/real estate loans $1,931,966 $1,855,506 $1,674,706
Mortgage loans 426,103 428,674 410,023
Direct consumer loans 485,201 479,087 469,832
Indirect consumer loans 357,008 350,829 351,405
Finance Company loans 92,315 86,965 64,496
------------------------------------
Total average loans $3,292,593 $3,201,061 $2,970,461
------------------------------------
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
------------------------------------
Three Months Ended
------------------------------------
03/31/07
------------------------------------
Interest Volume Rate
------------------------------------
Average Earning Assets
Commercial & real estate
loans (TE) $35,231 $1,931,966 7.39%
Mortgage loans 6,509 426,103 6.11%
Consumer loans 20,197 934,524 8.76%
Loan fees & late charges 443 -- 0.00%
------------------------------------
Total loans (TE) 62,380 3,292,593 7.67%
US treasury securities 736 60,480 4.94%
US agency securities 11,755 940,516 5.00%
CMOs 1,104 107,986 4.09%
Mortgage backed securities 5,482 444,427 4.93%
Municipals (TE) 2,861 198,815 5.76%
Other securities 922 78,333 4.71%
------------------------------------
Total securities (TE) 22,861 1,830,557 5.00%
Total short-term investments 2,883 231,558 5.05%
Average earning assets
yield (TE) $88,124 $5,354,709 6.64%
Interest-bearing Liabilities
Interest-bearing transaction
deposits $ 4,765 $1,492,405 1.29%
Time deposits 19,022 1,698,218 4.54%
Public Funds 9,029 820,652 4.46%
------------------------------------
Total interest bearing
deposits 32,816 4,011,274 3.32%
Customer repos 1,830 198,898 3.73%
Other borrowings (338) 6,838 -20.03%
------------------------------------
Total borrowings 1,492 205,737 2.94%
Total interest bearing
liab cost $34,308 $4,217,011 3.30%
Noninterest-bearing deposits -- 983,973 --
Other net interest-free
funding sources -- 153,725 --
Total Cost of Funds $34,308 $5,354,709 2.60%
Net Interest Spread (TE) $53,816 -- 3.34%
Net Interest Margin (TE) $53,816 $5,354,709 4.04%
------------------------------------
---------------------------------
Three Months Ended
---------------------------------
12/31/06
---------------------------------
Interest Volume Rate
---------------------------------
Average Earning Assets
Commercial & real estate loans (TE) $34,210 $1,855,506 7.32%
Mortgage loans 6,516 428,674 6.08%
Consumer loans 19,890 916,881 8.61%
Loan fees & late charges 1,510 -- 0.00%
---------------------------------
Total loans (TE) 62,126 3,201,061 7.71%
US treasury securities 1,081 84,281 5.09%
US agency securities 14,505 1,181,943 4.91%
CMOs 1,268 124,850 4.06%
Mortgage backed securities 5,920 490,990 4.82%
Municipals (TE) 2,422 190,739 5.08%
Other securities 968 81,105 4.77%
---------------------------------
Total securities (TE) 26,165 2,153,908 4.86%
Total short-term investments 1,075 81,675 5.22%
Average earning assets yield (TE) $89,366 $5,436,644 6.54%
Interest-bearing Liabilities
Interest-bearing transaction
deposits $3,930 $1,495,724 1.04%
Time deposits 18,999 1,697,427 4.44%
Public Funds 8,318 742,063 4.45%
---------------------------------
Total interest bearing deposits 31,247 3,935,214 3.15%
Customer repos 3,061 298,163 4.07%
Other borrowings (342) 23,129 -5.87%
-------- ------------ ---------
Total borrowings 2,719 321,292 3.36%
Total interest bearing liab cost $33,966 $4,256,506 3.17%
Noninterest-bearing deposits 1,039,846
Other net interest-free funding
sources 140,292
Total Cost of Funds $33,966 $5,436,644 2.48%
Net Interest Spread (TE) $55,400 3.38%
Net Interest Margin (TE) $55,400 $5,436,644 4.06%
------------------------------------
Three Months Ended
------------------------------------
03/31/06
------------------------------------
Interest Volume Rate
------------------------------------
Average Earning Assets
Commercial & real estate loans (TE) $28,637 $1,674,706 6.93%
Mortgage loans 5,897 410,023 5.75%
Consumer loans 17,473 885,732 8.00%
Loan fees & late charges 2,320 -- 0.00%
------------------------------------
Total loans (TE) 54,327 2,970,461 7.40%
US treasury securities 627 60,086 4.23%
US agency securities 13,786 1,194,312 4.62%
CMOs 1,810 184,276 3.93%
Mortgage backed securities 5,519 477,789 4.62%
Municipals (TE) 2,729 163,175 6.69%
Other securities 872 73,320 4.76%
------------------------------------
Total securities (TE) 25,342 2,152,958 4.71%
Total short-term investments 3,900 335,986 4.71%
Average earning assets yield (TE) $83,570 $5,459,405 6.17%
Interest-bearing Liabilities
Interest-bearing transaction
deposits $ 3,266 $1,714,514 0.77%
Time deposits 13,005 1,406,969 3.75%
Public Funds 6,750 712,394 3.84%
------------------------------------
Total interest bearing
deposits 23,021 3,833,877 2.44%
Customer repos 1,641 230,725 2.88%
Other borrowings 611 57,014 4.35%
------------------------------------
Total borrowings 2,252 287,738 3.17%
Total interest bearing liab cost $25,273 $4,121,615 2.49%
Noninterest-bearing deposits -- 1,201,186 --
Other net interest-free
funding sources -- 136,604 --
Total Cost of Funds $25,273 $5,459,405 1.88%
Net Interest Spread (TE) $58,297 -- 3.69%
Net Interest Margin (TE) $58,297 $5,459,405 4.30%
------------------------------------
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
-----------------------------------------
2005
-----------------------------------------
1Q 2Q 3Q 4Q
-----------------------------------------
Per Common Share Data
---------------------
Earnings per share:
Basic $ 0.48 $ 0.56 $ 0.04 $ 0.59
Diluted $ 0.47 $ 0.55 $ 0.04 $ 0.58
Cash dividends per share $ 0.165 $ 0.165 $ 0.195 $ 0.195
Book value per share
(period-end) $ 14.16 $ 14.87 $ 14.52 $ 14.78
Tangible book value per
share (period-end) $ 11.99 $ 12.73 $ 12.25 $ 12.55
Weighted average number
of shares:
Basic 32,463 32,396 32,308 32,313
Diluted 33,019 32,928 32,940 32,980
Period-end number of shares 32,463 32,310 32,309 32,301
Market data:
High price $ 34.20 $ 34.87 $ 37.84 $ 39.90
Low price $ 30.25 $ 28.25 $ 29.93 $ 31.08
Period end closing price $ 32.50 $ 34.40 $ 34.14 $ 37.81
Trading volume 3,286 3,527 8,760 6,829
Other Period-end Data
---------------------
FTE headcount 1,766 1,813 1,590 1,735
Tangible common equity $389,344 $411,203 $395,843 $405,216
Tier I capital $408,163 $416,312 $407,075 $420,281
Goodwill $ 55,409 $ 55,409 $ 61,428 $ 61,418
Amortizable intangibles $ 12,510 $ 11,746 $ 9,928 $ 9,204
Mortgage servicing
intangibles $ 2,288 $ 2,082 $ 1,860 $ 1,577
Common shares repurchased
for publicly announced
plans 40 96 12 --
Performance Ratios
------------------
Return on average assets 1.32% 1.52% 0.12% 1.39%
Return on average common
equity 13.32% 15.27% 1.18% 15.98%
Earning asset yield (TE) 5.90% 6.08% 6.19% 6.14%
Total cost of funds 1.55% 1.66% 1.80% 1.70%
Net interest margin (TE) 4.35% 4.42% 4.40% 4.44%
Noninterest 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 59.99% 57.83% 60.85% 56.89%
Common equity (period-end)
as a percent of total
assets (period-end) 9.64% 10.03% 9.55% 8.02%
Leverage (Tier I) ratio 8.75% 8.83% 8.64% 7.85%
Tangible common equity ratio 8.28% 8.71% 8.17% 6.89%
Net charge-offs as a
percent of average loans 0.33% 0.24% 0.23% 0.41%
Allowance for loan losses as
a percent of period-end loans 1.48% 1.45% 2.59% 2.51%
Allowance for loan losses to
NPAs + loans 90 days past
due 323.66% 284.75% 392.70% 195.50%
Loan/deposit ratio 72.40% 73.63% 76.77% 66.44%
Noninterest income excluding
net storm-related gain/(loss),
gain on sale of credit card
merchant and securities
transactions as a percent of
total revenue (TE) 32.77% 34.06% 31.10% 29.68%
-----------------------------------------
-------------------------------------- --------
2006 2007
-------------------------------------- --------
1Q 2Q 3Q 4Q 1Q
-------------------------------------- --------
Per Common Share Data
---------------------
Earnings per share:
Basic $ 0.68 $ 0.68 $ 1.11 $ 0.67 $ 0.59
Diluted $ 0.67 $ 0.66 $ 1.08 $ 0.65 $ 0.58
Cash dividends per
share $ 0.195 $ 0.220 $ 0.240 $ 0.240 $ 0.240
Book value per share
(period-end) $ 15.06 $ 15.12 $ 16.64 $ 17.09 $ 17.27
Tangible book value
per share
(period-end) $ 12.85 $ 12.94 $ 14.47 $ 14.87 $ 15.05
Weighted average
number of shares:
Basic 32,393 32,531 32,566 32,632 32,665
Diluted 33,088 33,322 33,333 33,378 33,299
Period-end number of
shares 32,494 32,555 32,584 32,666 32,518
Market data:
High price $ 46.67 $ 57.19 $ 56.79 $ 56.00 $ 54.09
Low price $ 37.75 $ 44.02 $ 49.71 $ 50.85 $ 41.88
Period end closing
price $ 46.52 $ 56.00 $ 53.55 $ 52.84 $ 43.98
Trading volume 3,990 8,737 8,135 6,393 8,577
Other Period-end Data
---------------------
FTE headcount 1,768 1,777 1,788 1,848 1,929
Tangible common
equity $417,684 $421,369 $471,387 $485,778 $489,430
Tier I capital $440,302 $457,738 $487,668 $510,638 $513,229
Goodwill $ 61,418 $ 59,060 $ 59,683 $ 62,277 $ 62,277
Amortizable
intangibles $ 8,725 $ 10,575 $ 9,938 $ 9,414 $ 8,991
Mortgage servicing
intangibles $ 1,384 $ 1,256 $ 1,093 $ 941 $ 829
Common shares re-
purchased for publicly
announced plans 17 22 -- -- 228
Performance Ratios
------------------
Return on average
assets 1.49% 1.45% 2.36% 1.44% 1.32%
Return on average
common equity 18.34% 17.89% 27.58% 15.54% 13.77%
Earning asset yield
(TE) 6.17% 6.32% 6.60% 6.54% 6.64%
Total cost of funds 1.88% 2.05% 2.30% 2.48% 2.60%
Net interest margin
(TE) 4.30% 4.27% 4.29% 4.06% 4.04%
Noninterest expense as
a percent of total
revenue (TE) before
amortization of pur-
chased in tangibles,
net storm- related
gain/(loss), gain on
sale of credit card
merchant and securities
transactions 58.30% 59.13% 58.76% 59.79% 61.38%
Common equity
(period-end) as a
percent of total
assets (period-end) 7.82% 8.00% 8.86% 9.36% 9.61%
Leverage (Tier I)
ratio 7.45% 7.59% 8.15% 8.63% 8.80%
Tangible common equity
ratio 6.75% 6.92% 7.79% 8.24% 8.48%
Net charge-offs as a
percent of average
loans -0.01% 0.40% 0.34% 0.19% 0.18%
Allowance for loan
losses as a percent
of period-end loans 2.51% 2.35% 1.55% 1.44% 1.41%
Allowance for loan
losses to NPAs + loans
90 days past due 432.85% 457.10% 494.65% 694.67% 413.60%
Loan/deposit ratio 59.00% 57.40% 60.97% 64.34% 65.91%
Noninterest 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% 33.14% 32.48%
--------------------------------------- -------
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
----------------------------------------------
2005
----------------------------------------------
1Q 2Q 3Q 4Q
----------------------------------------------
Asset Quality
Information
-------------
Non-accrual loans $ 6,335 $ 8,052 $ 10,373 $ 10,617
Foreclosed assets 3,591 2,567 2,973 1,898
----------------------------------------------
Total non-performing
assets $ 9,926 $ 10,619 $ 13,346 $ 12,515
Non-performing assets
as a percent of loans
and foreclosed assets 0.36% 0.37% 0.45% 0.42%
Accruing loans 90 days
past due $ 2,798 $ 3,914 $ 6,156 $ 25,622
Accruing loans 90 days
past due as a percent
of loans 0.10% 0.14% 0.21% 0.86%
Non-performing assets
+ accruing loans
90 days past due to
loans and foreclosed
assets 0.46% 0.51% 0.65% 1.28%
Net charge-offs $ 2,260 $ 1,691 $ 1,704 $ 3,104
Net charge-offs as a
percent of average
loans 0.33% 0.24% 0.23% 0.41%
Allowance for loan
losses $ 41,182 $ 41,382 $ 76,584 $ 74,558
Allowance for loan
losses as a percent of
period-end loans 1.48% 1.45% 2.59% 2.51%
Allowance for loan
losses to NPAs + accruing
loans 90 days past due 323.66% 284.75% 392.70% 195.50%
Provision for (recovery
of) loan losses $ 2,760 $ 1,891 $ 36,905 $ 1,079
Net Charge-off Information
--------------------------
Net charge-offs:
Commercial/real estate
loans $ 770 $ 202 ($17) $ 332
Mortgage loans 68 (5) 7 (7)
Direct consumer loans 501 491 861 1,831
Indirect consumer loans 540 538 342 272
Finance company loans 381 465 511 676
----------------------------------------------
Total net charge-offs $ 2,260 $ 1,691 $ 1,704 $ 3,104
----------------------------------------------
Average loans:
Commercial/real estate
loans $1,491,008 $1,523,348 $1,584,244 $1,660,804
Mortgage loans 407,258 417,307 430,615 442,977
Direct consumer loans 503,700 509,628 504,362 489,150
Indirect consumer loans 313,542 323,100 335,482 342,203
Finance Company loans 60,720 62,124 64,006 63,663
----------------------------------------------
Total average loans $2,776,229 $2,835,506 $2,918,709 $2,998,797
Net charge-offs to
average loans:
Commercial/real estate
loans 0.21% 0.05% 0.00% 0.08%
Mortgage loans 0.07% 0.00% 0.01% -0.01%
Direct consumer loans 0.40% 0.39% 0.68% 1.49%
Indirect consumer loans 0.70% 0.67% 0.40% 0.32%
Finance Company loans 2.54% 3.00% 3.17% 4.21%
----------------------------------------------
Total net charge-offs
to average loans 0.33% 0.24% 0.23% 0.41%
----------------------------------------------
----------------------------------------
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 2.51% 2.35% 1.55%
Allowance for loan losses
to NPAs + accruing loans
90 days past due 432.85% 457.10% 494.65%
Provision for (recovery
of) 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 ($108) $ 3,001 $ 2,608
----------------------------------------
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 -0.01% 0.40% 0.34%
----------------------------------------
----------- ------------
2006 2007
----------- ------------
4Q 1Q
----------- ------------
Asset Quality
Information
-------------
Non-accrual loans $ 3,500 $ 4,494
Foreclosed assets 681 718
----------- ------------
Total non-performing
assets $ 4,181 $ 5,212
Non-performing assets as
a percent of loans
and foreclosed assets 0.13% 0.16%
Accruing loans 90 days
past due $ 2,552 $ 6,035
Accruing loans 90 days
past due as a percent
of loans 0.08% 0.18%
Non-performing assets
+ accruing loans 90 days
past due to loans and
foreclosed assets 0.21% 0.34%
Net charge-offs $ 1,523 $ 1,465
Net charge-offs as a
percent of average loans 0.19% 0.18%
Allowance for loan losses $ 46,772 $ 46,517
Allowance for loan losses
as a percent of period-
end loans 1.44% 1.41%
Allowance for loan losses
to NPAs + accruing loans
90 days past due 694.67% 413.60%
Provision for (recovery
of) loan losses ($57) $ 1,211
Net Charge-off Information
--------------------------
Net charge-offs:
Commercial/real estate
loans ($137) $ 168
Mortgage loans (11) 23
Direct consumer loans 493 110
Indirect consumer loans 395 675
Finance company loans 783 489
----------- ------------
Total net charge-offs $ 1,523 $ 1,465
----------- ------------
Average loans:
Commercial/real estate
loans $1,855,506 $1,931,966
Mortgage loans 428,674 426,103
Direct consumer loans 479,087 485,201
Indirect consumer loans 350,829 357,008
Finance Company loans 86,965 92,315
----------- ------------
Total average loans $3,201,061 $3,292,593
Net charge-offs to
average loans:
Commercial/real estate
loans -0.03% 0.04%
Mortgage loans -0.01% 0.02%
Direct consumer loans 0.41% 0.09%
Indirect consumer loans 0.45% 0.77%
Finance Company loans 3.57% 2.15%
----------- ------------
Total net charge-offs to
average loans 0.19% 0.18%
----------- ------------
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
-----------------------------------------
2005
-----------------------------------------
1Q 2Q 3Q 4Q
-----------------------------------------
Income Statement
----------------
Interest income $ 60,531 $ 64,027 $ 65,644 $ 73,429
Interest income (TE) 62,302 65,767 67,506 75,433
Interest expense 16,289 17,961 19,659 20,911
-----------------------------------------
Net interest income (TE) 46,013 47,807 47,847 54,522
Provision for (recovery
of) loan losses 2,760 1,891 36,905 1,079
Noninterest income
excluding net storm-
related gain/(loss) and
securities transactions 22,427 24,695 21,600 23,016
Net storm-related
gain/(loss) -- -- 12,276 (5,692)
Securities transactions
gains/(losses) 7 (15) (18) (27)
Noninterest expense 41,642 42,505 42,770 44,626
-----------------------------------------
Income before income
taxes 22,273 26,350 168 24,112
Income tax expense 6,836 8,256 (1,267) 5,047
-----------------------------------------
Net income $ 15,438 $ 18,094 $ 1,435 $ 19,065
=========================================
Noninterest Income and
Noninterest Expense
----------------------
Service charges on
deposit accounts $ 9,490 $ 10,459 $ 7,975 $ 6,850
Trust fees 2,541 2,859 2,761 2,946
Debit card & merchant
fees 1,030 1,074 1,055 1,717
Insurance fees 3,881 3,499 4,883 4,837
Investment & annuity
fees 1,188 1,547 1,304 1,037
ATM fees 1,372 1,154 871 805
Secondary mortgage
market operations 499 676 377 670
Other income 2,426 3,428 2,374 4,154
-----------------------------------------
Noninterest income
excluding net storm-
related gain/(loss) and
securities transactions $ 22,427 $ 24,695 $ 21,600 $ 23,016
Net storm-related
gain/(loss) -- -- 12,276 (5,692)
Securities transactions
gains/(losses) 7 (15) (18) (27)
-----------------------------------------
Total noninterest income
including storm-related
gain/(loss) and
securities transactions $ 22,433 $ 24,680 $ 33,858 $ 17,298
=========================================
Personnel expense $ 22,379 $ 22,925 $ 24,275 $ 24,580
Occupancy expense (net) 2,495 2,576 2,617 3,237
Equipment expense 2,357 2,366 2,319 2,511
Other operating expense 13,828 14,059 13,044 13,780
Amortization of intangibles 584 578 514 518
-----------------------------------------
Total noninterest expense $ 41,642 $ 42,505 $ 42,770 $ 44,626
-----------------------------------------
-------------------------------------- -------
2006 2007
-------------------------------------- -------
1Q 2Q 3Q 4Q 1Q
-------------------------------------- -------
Income Statement
----------------
Interest income $81,590 $86,404 $ 89,233 $87,104 $85,708
Interest income (TE) 83,563 88,375 91,275 89,366 88,124
Interest expense 25,273 28,636 31,988 33,966 34,308
-------------------------------------- -------
Net interest income
(TE) 58,290 59,740 59,286 55,400 53,816
Provision for (recovery
of) loan losses (705) -- (20,000) (57) 1,211
Noninterest income
excluding net storm-
related gain/(loss)]
and securities
transactions 24,890 25,942 25,627 27,460 25,889
Net storm-related
gain/(loss) -- -- -- 5,084 --
Securities transactions
gains/(losses) 118 -- 110 (5,396) 213
Noninterest expense 49,165 51,172 50,336 50,042 49,346
-------------------------------------- -------
Income before income
taxes 32,865 32,536 52,645 30,300 26,945
Income tax expense 10,854 10,539 16,614 8,538 7,715
-------------------------------------- -------
Net income $22,011 $21,998 $ 36,031 $21,762 $19,229
====================================== =======
Noninterest Income
and Noninterest
Expense
------------------
Service charges on
deposit accounts $ 7,884 $ 9,223 $ 9,719 $ 9,402 $ 9,190
Trust fees 3,078 3,409 3,175 3,624 3,693
Debit card & merchant
fees 1,709 1,863 1,744 1,983 1,778
Insurance fees 5,159 4,596 4,146 5,346 4,369
Investment & annuity
fees 1,264 1,591 1,595 1,519 1,978
ATM fees 1,294 1,273 1,223 1,215 1,324
Secondary mortgage
market operations 817 749 1,018 945 911
Other income 3,684 3,239 3,009 3,426 2,646
-------------------------------------- -------
Noninterest income
excluding net storm-
related gain/(loss)
and securities
transactions $24,890 $25,942 $ 25,627 $27,460 $25,889
Net storm-related
gain/(loss) -- -- -- 5,084 --
Securities transactions
gains/(losses) 118 -- 110 (5,396) 213
-------------------------------------- -------
Total noninterest
income including
storm-related
gain/(loss) and
securities
transactions $25,008 $25,942 $ 25,737 $27,147 $26,101
====================================== =======
Personnel expense $26,202 $26,400 $ 27,059 $24,092 $26,563
Occupancy expense
(net) 3,659 3,474 2,882 3,335 4,073
Equipment expense 2,668 2,816 2,647 2,665 2,272
Other operating
expense 15,961 17,976 17,304 19,451 16,015
Amortization of
intangibles 675 507 445 499 423
-------------------------------------- -------
Total noninterest
expense $49,165 $51,172 $ 50,336 $50,042 $49,346
-------------------------------------- -------