GULFPORT, Miss., July 17, 2007 (PRIME NEWSWIRE) -- Hancock Holding Company (Nasdaq:HBHC) announced earnings for the second quarter ended June 30, 2007. Hancock's second quarter 2007 earnings were $20.3 million, a decrease of $1.7 million, or 7.6 percent, from the second quarter of 2006. Diluted earnings per share for the second quarter of 2007 were $0.62, a decrease of $0.04 from the same quarter a year ago. Earnings for the second quarter of 2007 were up $1.1 million, or 5.7 percent, from the first quarter of 2007. Diluted earnings per share were up $0.04 from the first quarter of 2007.
In commenting on Hancock's second quarter 2007 results, Chief Executive Officer Carl J. Chaney stated, "The increase in earnings from the first quarter was a clear sign that the Company was on track toward superior financial performance and that the rebuilding of the region was in full swing."
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 and 2007.
Also commenting on Hancock's second quarter earnings was Chief Executive Officer John M. Hairston: "The quarter's results are a clear indication of the Company's ongoing tradition of strength and stability and building shareholder value."
Second Quarter 2007 Financial Highlights
-- Net Income and Returns: Hancock's net income for the second
quarter of 2007 was $20.3 million compared to $22.0 million for
the same quarter a year ago. Return on average assets for the
quarter was 1.42 percent compared to 1.45 percent for 2006's
second quarter. Return on average common equity was 14.53 percent
compared to 17.89 percent for the same quarter a year ago. For
the first quarter of 2007, return on average assets was 1.32
percent and return on average common equity was 13.77 percent.
-- Asset Quality & Allowance for Loan Losses: Hancock recorded a
provision for loan losses of $1.2 million in the second quarter
which, when combined with the quarter's net charge-offs of $1.53
million, resulted in the $0.3 million reduction in the allowance
for loan losses between March 31, 2007, and June 30, 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 second quarter of 2007 were $1.53 million, or
0.18 percent of average loans, up $63 thousand from the $1.47
million, or 0.18 percent of average loans, reported for the first
quarter of 2007. Net charge-offs for the second quarter of 2006
were $3.00 million or 0.40 percent of average loans.
Non-performing assets as a percent of total loans and foreclosed
assets was 0.25 percent at June 30, 2007, compared to 0.16 percent
at March 31, 2007. Compared to the second quarter of 2006, the
ratio of non-performing assets as a percent of total loans and
foreclosed assets was down 4 basis points from the 0.29 percent
reported at June 30, 2006. Non-performing assets increased $3.5
million from March 31, 2007, reflecting the addition to
non-accrual loans of one credit totaling $4.0 million. The
Company's ratio of accruing loans 90 days or more past due to
total loans was 0.07 percent at June 30, 2007, compared to 0.18
percent at March 31, 2007, and to 0.22 percent at June 30, 2006.
The Company's allowance for loan losses was $46.23 million at
June 30, 2007, down $0.3 million from the $46.52 million reported
at March 31, 2007, and $24.73 million lower than the $70.96
million reported at June 30, 2006. The ratio of the allowance for
loan losses as a percent of period-end loans was 1.35 percent at
June 30, 2007, and 1.41 percent at March 31, 2007. The allowance
coverage ratio (allowance for loan losses to non-performers and
past dues) was 411 percent for the second quarter of 2007, as
compared to 457 percent for the second quarter of 2006.
-- Loans: For the quarter ended June 30, 2007, Hancock's average
total loans were $3.4 billion, which represented an increase of
$377.3 million, or 13 percent, from the quarter ended June 30,
2006. Period-end loans were up $117.5 million, or 4 percent,
compared to March 31, 2007. Average total loans were up $78.9
million, or 10 percent annualized, from the first quarter of 2007.
Of that increase, approximately $32 million of growth was in
Mississippi, $39 million in Louisiana, and $9 million in Alabama,
with a $1 million decrease in Florida. The majority of the
increase in average loans compared to last quarter was in
commercial purpose loans (approximately $57.5 million).
-- Deposits: Period-end deposits for the second quarter were $5.0
billion, down $269.7 million, or 5 percent, from June 30, 2006,
but were up $53.9 million, or 1 percent, from March 31, 2007.
Average deposits were down $152.8 million, or 12 percent
annualized, from the first quarter of 2007. The decrease in
average deposits was in public fund deposits (down $45.2 million),
time deposits (down $42.9 million), transaction deposits (down
$31.3 million) and non-interest bearing deposits (down $33.4
million). The decline in average 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. However, as noted above, the Company's June 30, 2007,
deposit balances did reflect a $53.9 million increase as compared
to March 31, 2007. The majority of this increase took place
throughout the month of June and was reflected in higher time and
public fund deposits.
-- Net Interest Income: Net interest income (te) for the second
quarter decreased $5.9 million, or 10 percent, from the second
quarter of 2006, and was basically unchanged from the first
quarter of 2007. The Company's net interest margin (te) was 4.17
percent in the second quarter, 10 basis points narrower than the
same quarter a year ago and 13 basis points wider than the
previous quarter. Compared to the same quarter a year ago, the
primary driver of the $5.9 million decrease in net interest income
(te) was a $432.7 million, or 8 percent, decrease in average
earning assets, mainly from a reduction in total borrowings of
$13.2 million, or 6 percent, and a decrease in average deposits of
$374.0 million, or 7 percent. As mentioned, the net interest
margin (te) narrowed 10 basis points as the increase in the
average earning asset yield (44 basis points) did not offset the
increase in total funding costs (54 basis points). The Company's
level of net interest income (te) in the second quarter remained
unchanged from the prior quarter. The net interest margin (te)
widened 13 basis points from the prior quarter as the yield on
average earning assets increased 12 basis points, while total
funding costs were down 1 basis point.
-- Non-interest income & operating expense: Non-interest income for
the second quarter was up $4.3 million, or 16 percent, compared to
the same quarter a year ago and was up $4.3 million, or 17
percent, compared to the previous quarter. The primary factors
impacting the higher levels of non-interest income (excluding
securities transactions) as compared to the same quarter a year
ago, were higher levels of service charge fees (up $1.2 million,
or 14 percent) and trust fees (up $0.7 million, or 21 percent).
The increase in non-interest income (excluding securities
transactions) for the second quarter compared to the prior quarter
was due to increases in service charge fees (up $1.3 million),
other income (up $1.3 million), insurance fees (up $0.7 million),
and trust fees (up $0.4 million). Operating expenses for the
second quarter were $.7 million, or 1 percent, higher compared to
the same quarter a year ago and were $2.7 million, or 6 percent,
higher than the previous quarter. The increase from the same
quarter a year ago was reflected in higher levels of other expense
(up $1.4 million) and occupancy expense (up $1.0 million) with
lower personnel expense (down $1.6 million). The increase in
operating expense over last quarter was due to higher levels of
occupancy and equipment expense (up $0.9 million) and other
operating expense (up $3.6 million, primarily in higher levels of
professional fees, advertising, ORE expense and other
miscellaneous expense), offset by lower personnel expense (down
$1.7 million). The second quarter of 2007 included about $1.0
million of one-time expenses related to certain legal and other
professional fees as well as moving costs associated with the
June 23, 2007 move of the Company's data center to a newly
constructed facility north of Interstate 10.
Branch Expansion
During the second quarter, the Company officially opened its flagship branch in downtown Mobile, AL. Additional Alabama branches are planned in Daphne, the Eastern Shore, and Mobile. All are expected to be open in temporary facilities within 90 days, with possibly four additional locations by the end of 2008. A new branch will open in downtown New Orleans, LA, by September 30, 2007, and as many as three additional branches in Pensacola, FL, by the end of 2008.
Stock Repurchases
Approximately 433,000 of the Company's shares were repurchased during the second quarter of 2007 under the Stock Repurchase Plan that was approved in 2000. The Company has repurchased 661,000 shares through June 30, 2007 compared to 39,000 shares during the first six months of 2006. The remaining plan shares available for repurchase at June 30, 2007, were 0.9 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 Louisiana, Hancock Bank of Florida, and Hancock Bank of Alabama -- has assets of approximately $5.9 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, LA, and Baton Rouge, LA.
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 online banking are available at www.hancockbank.com.
The Hancock Holding Company logo is available at http://www.primenewswire.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 Six Months Ended
---------------------------------------------------------
6/30/2007 3/31/2007 6/30/2006 6/30/2007 6/30/2006
---------------------------------------------------------
Per Common
Share Data
-----------
Earnings per
share:
Basic $ 0.63 $ 0.59 $ 0.68 $ 1.22 $ 1.36
Diluted $ 0.62 $ 0.58 $ 0.66 $ 1.20 $ 1.32
Cash dividends
per share $ 0.240 $ 0.240 $ 0.220 $ 0.480 $ 0.415
Book value per
share
(period-end) $ 17.13 $ 17.27 $ 15.12 $ 17.13 $ 15.12
Tangible book
value per
share
(period-end) $ 14.90 $ 15.05 $ 12.94 $ 14.90 $ 12.94
Weighted
average
number of
shares:
Basic 32,233 32,665 32,531 32,447 32,462
Diluted 32,749 33,299 33,322 33,024 33,237
Period-end
number of
shares 32,094 32,518 32,555 32,094 32,555
Market data:
High closing
price $ 44.37 $ 54.09 $ 57.19 $ 54.09 $ 57.19
Low closing
price $ 37.50 $ 41.88 $ 44.02 $ 37.50 $ 37.75
Period end
closing
price $ 37.55 $ 43.98 $ 56.00 $ 37.55 $ 56.00
Trading
volume 11,614 8,577 8,737 20,195 12,528
Other
Period-end
Data
-----------
FTE headcount 1,944 1,929 1,777 1,944 1,777
Tangible
common
equity $478,085 $489,430 $421,369 $478,085 $421,369
Tier I capital $510,096 $513,229 $457,738 $510,096 $457,738
Goodwill $ 62,277 $ 62,277 $ 59,060 $ 62,277 $ 59,060
Amortizable
intangibles $ 8,607 $ 8,991 $ 10,575 $ 8,607 $ 10,575
Mortgage
servicing
intangibles $ 729 $ 829 $ 1,256 $ 729 $ 1,256
Common shares
repurchased
for
publicly
announced
plans 433 228 22 661 39
Performance
Ratios
-----------
Return on
average
assets 1.42% 1.32% 1.45% 1.37% 1.47%
Return on
average common
equity 14.53% 13.77% 17.89% 14.15% 18.11%
Earning asset
yield (TE) 6.76% 6.64% 6.32% 6.70% 6.25%
Total cost of
funds 2.59% 2.60% 2.05% 2.59% 1.96%
Net interest
margin (TE) 4.17% 4.04% 4.27% 4.10% 4.28%
Noninterest
expense as a
percent of
total revenue
(TE) before
amortization
of
purchased
intangibles
and
securities
transactions 61.27% 61.12% 59.13% 61.20% 58.72%
Common equity
(period-end)
as a percent
of total
assets
(period-end) 9.36% 9.61% 8.00% 9.36% 8.00%
Leverage
(Tier I) ratio 9.01% 8.80% 7.59% 9.01% 7.59%
Tangible common
equity ratio 8.24% 8.48% 6.92% 8.24% 6.92%
Net charge-offs
as a percent
of average
loans 0.18% 0.18% 0.40% 0.18% 0.20%
Allowance for
loan losses as
a percent of
period-end
loans 1.35% 1.41% 2.35% 1.35% 2.35%
Allowance for
loan losses to
NPAs +
accruing
loans 90 days
past due 410.98% 413.60% 457.10% 410.98% 457.10%
Loan/deposit
ratio 69.62% 65.91% 57.40% 67.75% 58.18%
Non-interest
income
excluding
securities
transactions
as a percent
of total
revenue (TE) 35.94% 32.48% 30.27% 34.26% 30.10%
---------------------------------------------------------
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
---------------------------------------------------------
Three Months Ended Six Months Ended
---------------------------------------------------------
6/30/2007 3/31/2007 6/30/2006 6/30/2007 6/30/2006
---------------------------------------------------------
Asset
Quality
Information
------------
Non-accrual
loans $ 7,544 $ 4,494 $ 7,237 $ 7,544 $ 7,237
Foreclosed
assets 1,146 718 1,606 1,146 1,606
---------------------------------------------------------
Total non-
performing
assets $ 8,690 $ 5,212 $ 8,843 $ 8,690 $ 8,843
---------------------------------------------------------
Non-
performing
assets as
a percent
of loans
and
foreclosed
assets 0.25% 0.16% 0.29% 0.25% 0.29%
Accruing
loans 90
days past
due $ 2,558 $ 6,035 $ 6,681 $ 2,558 $ 6,681
Accruing
loans 90
days
past due
as a
percent
of loans 0.07% 0.18% 0.22% 0.07% 0.22%
Non-
performing
assets +
accruing
loans 90
days
past due
to loans
and
foreclosed
assets 0.33% 0.34% 0.51% 0.33% 0.51%
Net
charge-
offs $ 1,529 $ 1,466 $ 3,001 $ 2,994 $ 2,893
Net
charge-
offs as
a
percent
of
average
loans 0.18% 0.18% 0.40% 0.18% 0.20%
Allowance
for loan
losses $ 46,227 $ 46,517 $ 70,960 $ 46,227 $ 70,960
Allowance
for loan
losses
as a
percent
of
period-
end
loans 1.35% 1.41% 2.35% 1.35% 2.35%
Allowance
for loan
losses to
NPAs +
accruing
loans 90
days past
due 410.98% 413.60% 457.10% 410.98% 457.10%
Provision
for loan
losses $ 1,238 $ 1,211 -- $ 2,449 ($705)
Allowance
for Loan
Losses
---------
Beginning
Balance $ 46,517 $ 46,772 $ 73,961 $ 46,772 $ 74,558
Provision
for loan
loss 1,238 1,211 -- 2,449 (705)
Charge-
offs 3,521 3,076 4,742 6,597 8,664
Recoveries 1,993 1,610 1,741 3,603 5,771
---------------------------------------------------------
Net
charge-
offs 1,529 1,466 3,001 2,994 2,893
---------------------------------------------------------
Ending
Balance $ 46,227 $ 46,517 $ 70,960 $ 46,227 $ 70,960
---------------------------------------------------------
Net Charge-
off
Information
------------
Net charge-
offs:
Commercial/
real
estate
loans ($63) $ 168 $ 620 $ 105 ($1,149)
Mortgage
loans (22) 23 28 1 209
Direct
consumer
loans 618 110 1,681 972 2,260
Indirect
consumer
loans 471 676 391 902 1,044
Finance
company
loans 525 489 281 1,014 529
---------------------------------------------------------
Total net
charge-
offs $ 1,529 $ 1,466 $ 3,001 $ 2,994 $ 2,893
---------------------------------------------------------
Average
loans:
Commercial/
real
estate
loans $1,989,420 $1,931,966 $1,699,768 $1,960,852 $1,687,306
Mortgage
loans 433,310 426,103 410,522 429,726 410,274
Direct
consumer
loans 487,267 485,201 463,977 486,239 466,888
Indirect
consumer
loans 360,451 357,008 348,463 358,739 349,926
Finance
Company
loans 101,092 92,315 71,461 96,728 67,997
---------------------------------------------------------
Total
average
loans $3,371,540 $3,292,593 $2,994,191 $3,332,285 $2,982,391
Net
charge-
offs to
average
loans:
Commercial/
real
estate
loans -0.01% 0.04% 0.15% 0.01% -0.14%
Mortgage
loans -0.02% 0.02% 0.03% 0.00% 0.10%
Direct
consumer
loans 0.51% 0.09% 1.45% 0.40% 0.98%
Indirect
consumer
loans 0.52% 0.77% 0.45% 0.51% 0.60%
Finance
Company
loans 2.08% 2.15% 1.58% 2.11% 1.57%
---------------------------------------------------------
Total net
charge-
offs to
average
loans 0.18% 0.18% 0.40% 0.18% 0.20%
---------------------------------------------------------
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
-----------------------------------------------------
Three Months Ended Six Months Ended
------------------------------- --------------------
6/30/2007 3/31/2007 6/30/2006 6/30/2007 6/30/2006
--------- --------- --------- --------- ---------
Income Statement
----------------
Interest
income $ 84,938 $ 85,708 $ 86,403 $ 170,646 $ 167,993
Interest
income (TE) 87,204 88,124 88,382 175,329 171,951
Interest
expense 33,394 34,308 28,636 67,703 53,908
--------- --------- --------- --------- ---------
Net interest
income (TE)
53,810 53,816 59,746 107,626 118,043
Provision for
loan losses 1,238 1,211 -- 2,449 (705)
Noninterest
income excluding
securities
transactions 30,193 25,889 25,942 56,081 50,831
Securities
transactions
gains/(losses) 34 6 -- 40 118
Noninterest
expense 51,857 49,140 51,172 100,996 100,338
--------- --------- --------- --------- ---------
Income before
income taxes
28,676 26,944 32,536 55,620 65,402
Income tax
expense 8,352 7,715 10,539 16,068 21,393
--------- --------- --------- --------- ---------
Net income $ 20,323 $ 19,229 $ 21,998 $ 39,553 $ 44,009
========= ========= ========= ========= =========
Noninterest
Income and
Noninterest
Expense
-------------
Service charges
on deposit
accounts $ 10,471 $ 9,190 $ 9,223 $ 19,662 $ 17,107
Trust fees 4,124 3,693 3,409 7,816 6,487
Debit card &
merchant fees 2,171 1,778 1,863 3,949 3,571
Insurance fees 5,033 4,369 4,596 9,402 9,755
Investment &
annuity fees 2,018 1,978 1,591 3,995 2,855
ATM fees 1,358 1,324 1,273 2,682 2,567
Secondary
mortgage
market
operations 1,116 911 749 2,027 1,566
Other income 3,903 2,646 3,239 6,549 6,923
--------- --------- --------- --------- ---------
Noninterest
income
excluding
securities
transactions $ 30,193 $ 25,889 $ 25,942 $ 56,081 $ 50,831
Securities
transactions
gains/(losses) 34 6 -- 40 118
--------- --------- --------- --------- ---------
Total noninterest
income
including
securities
transactions $ 30,227 $ 25,895 $ 25,942 $ 56,121 $ 50,950
========= ========= ========= ========= =========
Personnel
expense $ 24,837 $ 26,563 $ 26,400 $ 51,401 $ 52,602
Occupancy
expense (net) 4,469 4,073 3,474 8,542 7,134
Equipment
expense 2,768 2,272 2,816 5,041 5,484
Other operating
expense 19,398 15,809 17,976 35,206 33,937
Amortization
of intangibles 384 423 507 807 1,181
--------- --------- --------- --------- ---------
Total noninterest
expense $ 51,857 $ 49,140 $ 51,172 $ 100,996 $ 100,338
========= ========= ========= ========= =========
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
Three Months Ended Six Months Ended
----------------------------------- -----------------------
6/30/2007 3/31/2007 6/30/2006 6/30/2007 6/30/2006
----------- ----------- ----------- ----------- -----------
Period-end
Balance
Sheet
----------
Commercial
/real
estate
loans $ 2,044,170 $ 1,953,907 $ 1,727,236 $ 2,044,170 $ 1,727,236
Mortgage
loans 420,342 420,780 405,416 420,342 405,416
Direct
consumer
loans 481,564 469,783 463,313 481,564 463,313
Indirect
consumer
loans 364,375 358,844 348,342 364,375 348,342
Finance
Company
loans 105,700 95,334 75,053 105,700 75,053
----------- ----------- ----------- ----------- -----------
Total
loans 3,416,151 3,298,648 3,019,360 3,416,151 3,019,360
Loans held
for sale 25,198 21,341 24,704 25,198 24,704
Securities 1,615,473 1,820,772 2,133,792 1,615,473 2,133,792
Short-term
invest-
ments 196,944 134,924 414,062 196,944 414,062
----------- ----------- ----------- ----------- -----------
Earning
assets 5,253,766 5,275,685 5,591,919 5,253,766 5,591,919
----------- ----------- ----------- ----------- -----------
Allowance
for loan
losses (46,227) (46,517) (70,960) (46,227) (70,960)
Other
assets 662,263 615,946 634,233 662,263 634,233
----------- ----------- ----------- ----------- -----------
Total
assets $ 5,869,803 $ 5,845,114 $ 6,155,192 $ 5,869,803 $ 6,155,192
=========== =========== =========== =========== ===========
Noninterest
bearing
deposits $ 938,638 $ 995,864 $ 1,206,235 $ 938,638 $ 1,206,235
Interest
bearing
trans-
action
deposits 1,412,123 1,515,116 1,640,552 1,412,123 1,640,552
Interest
bearing
Public
Fund
deposits 891,803 777,692 853,566 891,803 853,566
Time
deposits 1,735,105 1,635,090 1,546,973 1,735,105 1,546,973
----------- ----------- ----------- ----------- -----------
Total
interest
bearing
deposits 4,039,031 3,927,899 4,041,092 4,039,031 4,041,092
----------- ----------- ----------- ----------- -----------
Total
deposits 4,977,670 4,923,763 5,247,327 4,977,670 5,247,327
Other
borrowed
funds 203,935 222,534 227,793 203,935 227,793
Other
liabil-
ities 138,501 137,209 187,812 138,501 187,812
Common
share-
holders'
equity 549,698 561,608 492,260 549,698 492,260
----------- ----------- ----------- ----------- -----------
Total
liabilities
& common
equity $ 5,869,803 $ 5,845,114 $ 6,155,192 $ 5,869,803 $ 6,155,192
=========== =========== =========== =========== ===========
Average
Balance
Sheet
---------
Commercial
/real
estate
loans $ 1,989,420 $ 1,931,966 $ 1,699,768 $ 1,960,852 $ 1,687,306
Mortgage
loans 433,310 426,103 410,522 429,726 410,274
Direct
consumer
loans 487,267 485,201 463,977 486,239 466,888
Indirect
consumer
loans 360,451 357,008 348,463 358,739 349,926
Finance
Company
loans 101,092 92,315 71,461 96,728 67,997
----------- ----------- ----------- ----------- -----------
Total
loans 3,371,540 3,292,593 2,994,191 3,332,285 2,982,391
Securities 1,733,850 1,830,557 2,273,012 1,781,937 2,213,317
Short-term
invest-
ments 67,520 231,558 338,443 149,086 337,221
----------- ----------- ----------- ----------- -----------
Earning
average
assets 5,172,910 5,354,708 5,605,646 5,263,307 5,532,930
----------- ----------- ----------- ----------- -----------
Allowance
for loan
losses (46,511) (46,704) (73,706) (46,607) (74,066)
Other
assets 607,905 597,949 570,497 602,954 584,444
----------- ----------- ----------- ----------- -----------
Total
assets $ 5,734,304 $ 5,905,953 $ 6,102,438 $ 5,819,654 $ 6,043,308
=========== =========== =========== =========== ===========
Noninterest
bearing
deposits $ 950,600 $ 983,973 $ 1,177,756 $ 967,194 $ 1,189,407
Interest
bearing
transaction
deposits 1,461,091 1,492,405 1,696,598 1,476,661 1,705,506
Interest
bearing
Public
Fund
deposits 775,431 820,652 837,751 797,916 775,418
Time
deposits 1,655,322 1,698,217 1,504,343 1,676,651 1,455,925
----------- ----------- ----------- ----------- -----------
Total
interest
bearing
deposits 3,891,843 4,011,274 4,038,692 3,951,229 3,936,850
----------- ----------- ----------- ----------- -----------
Total
deposits 4,842,443 4,995,247 5,216,448 4,918,423 5,126,257
Other
borrowed
funds 197,206 205,737 210,388 201,448 248,849
Other
liabil-
ities 133,821 138,775 182,453 136,285 178,244
Common
share-
holders'
equity 560,833 566,194 493,149 563,499 489,958
----------- ----------- ----------- ----------- -----------
Total
liabil-
ities &
common
equity $ 5,734,304 $ 5,905,953 $ 6,102,438 $ 5,819,654 $ 6,043,308
=========== =========== =========== =========== ===========
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
Three Months Ended Six Months Ended
----------------------------------- -----------------------
6/30/2007 3/31/2007 6/30/2006 6/30/2007 6/30/2006
----------- ----------- ----------- ----------- -----------
Average
Balance
Sheet
Mix
---------
Percentage
of earning
assets/
funding
sources:
Loans 65.18% 61.49% 53.41% 63.31% 53.90%
Securities 33.52% 34.19% 40.55% 33.86% 40.00%
Short-term
investments 1.31% 4.32% 6.04% 2.83% 6.09%
----------- ----------- ----------- ----------- -----------
Earning
average
assets 100.00% 100.00% 100.00% 100.00% 100.00%
=========== =========== =========== =========== ===========
Noninterest
bearing
deposits 18.38% 18.38% 21.01% 18.38% 21.50%
Interest
bearing
transaction
deposits 28.25% 27.87% 30.27% 28.06% 30.82%
Interest
bearing
Public
Fund
deposits 14.99% 15.33% 14.94% 15.16% 14.01%
Time
deposits 32.00% 31.71% 26.84% 31.86% 26.31%
----------- ----------- ----------- ----------- -----------
Total
deposits 93.61% 93.29% 93.06% 93.45% 92.65%
Other
borrowed
funds 3.81% 3.84% 3.75% 3.83% 4.50%
Other net
interest-
free
funding
sources 2.58% 2.87% 3.19% 2.73% 2.85%
----------- ----------- ----------- ----------- -----------
Total
average
funding
sources 100.00% 100.00% 100.00% 100.00% 100.00%
=========== =========== =========== =========== ===========
Loan mix:
Commercial/
real
estate
loans 59.01% 58.68% 56.77% 58.84% 56.58%
Mortgage
loans 12.85% 12.94% 13.71% 12.90% 13.76%
Direct
consumer
loans 14.45% 14.74% 15.50% 14.59% 15.65%
Indirect
consumer
loans 10.69% 10.84% 11.64% 10.77% 11.73%
Finance
Company
loans 3.00% 2.80% 2.39% 2.90% 2.28%
----------- ----------- ----------- ----------- -----------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
=========== =========== =========== =========== ===========
Average
dollars
(in thousands):
Loans $ 3,371,540 $ 3,292,593 $ 2,994,191 $ 3,332,285 $ 2,982,391
Securities 1,733,850 1,830,557 2,273,012 1,781,937 2,213,317
Short-term
invest-
ments 67,520 231,558 338,443 149,086 337,221
----------- ----------- ----------- ----------- -----------
Earning
average
assets $ 5,172,910 $ 5,354,708 $ 5,605,646 $ 5,263,307 $ 5,532,930
Noninterest
bearing
deposits $ 950,600 $ 983,973 $ 1,177,756 $ 967,194 $ 1,189,407
Interest
bearing
transaction
deposits 1,461,091 1,492,405 1,696,598 1,476,661 1,705,506
Interest
bearing
Public
Fund
deposits 775,431 820,652 837,751 797,916 775,418
Time
deposits 1,655,322 1,698,217 1,504,343 1,676,651 1,455,925
----------- ----------- ----------- ----------- -----------
Total
deposits 4,842,443 4,995,247 5,216,448 4,918,423 5,126,257
Other
borrowed
funds 197,206 205,737 210,388 201,448 248,849
Other net
interest-
free
funding
sources 133,260 153,724 178,810 143,436 157,824
----------- ----------- ----------- ----------- -----------
Total
average
funding
sources $ 5,172,910 $ 5,354,708 $ 5,605,646 $ 5,263,307 $ 5,532,930
Loans:
Commercial/
real
estate
loans $ 1,989,420 $ 1,931,966 $ 1,699,768 $ 1,960,852 $ 1,687,306
Mortgage
loans 433,310 426,103 410,522 429,726 410,274
Direct
consumer
loans 487,267 485,201 463,977 486,239 466,888
Indirect
consumer
loans 360,451 357,008 348,463 358,739 349,926
Finance
Company
loans 101,092 92,315 71,461 96,728 67,997
----------- ----------- ----------- ----------- -----------
Total
average
loans $ 3,371,540 $ 3,292,593 $ 2,994,191 $ 3,332,285 $ 2,982,391
----------- ----------- ----------- ----------- -----------
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
--------------------------------
Three Months Ended
--------------------------------
06/30/07
--------------------------------
Interest Volume Rate
--------------------------------
Average Earning Assets
Commercial & real
estate loans (TE) $36,689 $1,989,420 7.40%
Mortgage loans 6,677 433,310 6.16%
Consumer loans 20,978 948,810 8.87%
Loan fees & late charges 291 -- 0.00%
---------- -------------- ---------
Total loans (TE) 64,635 3,371,540 7.69%
US treasury securities 414 34,141 4.87%
US agency securities 10,988 866,747 5.07%
CMOs 948 93,145 4.07%
Mortgage backed securities 5,847 469,500 4.98%
Municipals (TE) 2,653 196,860 5.39%
Other securities 932 73,456 5.08%
---------- -------------- ---------
Total securities (TE) 21,782 1,733,850 5.03%
Total short-term
investments 788 67,520 4.68%
Average earning assets
yield (TE) $87,204 $5,172,910 6.76%
Interest-bearing Liabilities
Interest-bearing transaction
deposits $5,009 $1,461,091 1.38%
Time deposits 18,915 1,655,322 4.58%
Public Funds 8,583 775,431 4.44%
-----------------------------------
Total interest bearing
deposits 32,508 3,891,843 3.35%
Total borrowings 886 197,206 1.80%
Total interest bearing
liab cost $33,394 $4,089,050 3.28%
Noninterest-bearing deposits 950,600
Other net interest-free
funding sources 133,260
Total Cost of Funds $33,394 $5,172,910 2.59%
Net Interest Spread (TE) $53,810 3.48%
Net Interest Margin (TE) $53,810 $5,172,910 4.17%
--------------------------------
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) 22,860 1,830,557 5.00%
Total short-term
investments 2,883 231,558 5.05%
Average earning assets
yield (TE) $88,124 $5,354,708 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%
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 153,724
Total Cost of Funds $34,308 $5,354,708 2.60%
Net Interest Spread (TE) $53,816 3.34%
Net Interest Margin (TE) $53,816 $5,354,708 4.04%
--------------------------------
Three Months Ended
--------------------------------
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) 2,680 158,553 6.76%
Other securities 944 76,641 4.93%
---------- -------------- ---------
Total securities (TE) 27,301 2,273,012 4.80%
Total short-term
investments 3,656 338,443 4.33%
Average earning assets
yield (TE) $88,382 $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%
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) $59,746 3.61%
Net Interest Margin (TE) $59,746 $5,605,646 4.27%
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
---------------------------------------------------------
Six Months Ended
---------------------------------------------------------
6/30/2007 6/30/2006
---------------------------- ----------------------------
Interest Volume Rate Interest Volume Rate
--------- ----------- ----- --------- ----------- ------
Average Earning
Assets
Commercial &
real estate
loans (TE)$ 71,920 $ 1,960,852 7.39% $ 59,250 $ 1,687,306 7.08%
Mortgage
loans 13,186 429,726 6.14% 11,877 410,274 5.79%
Consumer
loans 41,175 941,706 8.82% 35,829 884,811 8.17%
Loan fees &
late
charges 734 -- 0.00% 4,796 -- 0.00%
--------- ----------- ----- --------- ----------- ------
Total
loans
(TE) 127,015 3,332,285 7.68% 111,752 2,982,391 7.55%
U.S. treasury
securities 1,151 47,238 4.91% 1,081 51,007 4.27%
U.S. agency
securities 22,743 903,428 5.03% 29,740 1,271,059 4.68%
CMOs 2,052 100,525 4.08% 3,435 174,497 3.94%
Mortgage
backed
securities 11,330 457,033 4.96% 11,162 480,913 4.64%
Municipals
(TE) 5,514 197,832 5.57% 5,409 160,851 6.73%
Other
securities 1,854 75,881 4.89% 1,817 74,990 4.84%
--------- ----------- ----- --------- ----------- ------
Total
securities
(TE) 44,643 1,781,937 5.01% 52,643 2,213,317 4.76%
Total
short-
term
invest-
ments 3,671 149,086 4.97% 7,556 337,221 4.52%
Average
earning
assets
yield
(TE) $ 175,329 $ 5,263,307 6.70% $ 171,951 $ 5,532,930 6.25%
Interest-
Bearing
Liabilities
Interest-
bearing
transaction
deposits $ 9,775 $ 1,476,661 1.33% $ 7,046 $ 1,705,506 0.83%
Time
deposits 37,937 1,676,651 4.56% 27,456 1,455,925 3.80%
Public Funds 17,612 797,916 4.45% 15,407 775,418 4.01%
--------- ----------- ----- --------- ----------- ------
Total
interest
bearing
deposits 65,324 3,951,229 3.33% 49,909 3,936,850 2.56%
Total
borrowings 2,379 201,448 2.38% 3,999 248,849 3.24%
Total
interest
bearing
liab
cost $ 67,703 $ 4,152,677 3.29% $ 53,908 $ 4,185,699 2.60%
Noninterest-
bearing
deposits 967,194 1,189,407
Other net
interest-
free
funding
sources 143,436 157,824
Total Cost
of Funds $ 67,703 $ 5,263,307 2.59% $ 53,908 $ 5,532,930 1.96%
Net Interest
Spread
(TE) $ 107,626 3.41% $ 118,043 3.65%
Net Interest
Margin
(TE) $ 107,626 $ 5,263,307 4.10% $ 118,043 $ 5,532,930 4.28%
--------- ----------- ----- --------- ----------- ------
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
--------------------------
2005
--------------------------
3Q 4Q
--------------------------
Per Common Share Data
---------------------
Earnings per share:
Basic $0.04 $0.59
Diluted $0.04 $0.58
Cash dividends per share $0.195 $0.195
Book value per share (period-end) $14.52 $14.78
Tangible book value per share
(period-end) $12.25 $12.55
Weighted average number of shares:
Basic 32,308 32,313
Diluted 32,940 32,980
Period-end number of shares 32,309 32,301
Market data:
High closing price $37.84 $39.90
Low closing price $29.93 $31.08
Period end closing price $34.14 $37.81
Trading volume 8,760 6,829
Other Period-end Data
---------------------
FTE headcount 1,590 1,735
Tangible common equity $395,843 $405,216
Tier I capital $407,075 $420,281
Goodwill $61,428 $61,418
Amortizable intangibles $9,928 $9,204
Mortgage servicing intangibles $1,860 $1,577
Common shares repurchased for
publicly announced plans 12 --
Performance Ratios
------------------
Return on average assets 0.12% 1.39%
Return on average common equity 1.18% 15.98%
Earning asset yield (TE) 6.19% 6.14%
Total cost of funds 1.80% 1.70%
Net interest margin (TE) 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 60.85% 56.89%
Common equity (period-end) as
a percent of total assets
(period-end) 9.55% 8.02%
Leverage (Tier I) ratio 8.64% 7.85%
Tangible common equity ratio 8.17% 6.89%
Net charge-offs as a
percent of average loans 0.23% 0.41%
Allowance for loan losses as
a percent of period-end loans 2.59% 2.51%
Allowance for loan losses to
NPAs + loans 90 days past due 392.70% 195.50%
Loan/deposit ratio 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) 31.10% 29.68%
--------------------------------------
2006
--------------------------------------
1Q 2Q 3Q 4Q
--------------------------------------
Per Common Share Data
---------------------
Earnings per share:
Basic $0.68 $0.68 $1.11 $0.67
Diluted $0.67 $0.66 $1.08 $0.65
Cash dividends per share $0.195 $0.220 $0.240 $0.240
Book value per share
(period-end) $15.06 $15.12 $16.64 $17.09
Tangible book value per
share (period-end) $12.85 $12.94 $14.47 $14.87
Weighted average number of
shares:
Basic 32,393 32,531 32,566 32,632
Diluted 33,088 33,322 33,333 33,378
Period-end number of shares 32,494 32,555 32,584 32,666
Market data:
High closing price $46.67 $57.19 $56.79 $56.00
Low closing price $37.75 $44.02 $49.71 $50.85
Period end closing price $46.52 $56.00 $53.55 $52.84
Trading volume 3,990 8,737 8,135 6,393
Other Period-end Data
---------------------
FTE headcount 1,768 1,777 1,788 1,848
Tangible common equity $417,684 $421,369 $471,387 $485,778
Tier I capital $440,302 $457,738 $487,668 $510,638
Goodwill $61,418 $59,060 $59,683 $62,277
Amortizable intangibles $8,725 $10,575 $9,938 $9,414
Mortgage servicing
intangibles $1,384 $1,256 $1,093 $941
Common shares repurchased
for publicly announced
plans 17 22 -- --
Performance Ratios
------------------
Return on average assets 1.49% 1.45% 2.36% 1.44%
Return on average common
equity 18.34% 17.89% 27.58% 15.54%
Earning asset yield (TE) 6.17% 6.32% 6.60% 6.54%
Total cost of funds 1.88% 2.05% 2.30% 2.48%
Net interest margin (TE) 4.30% 4.27% 4.29% 4.06%
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 58.30% 59.13% 58.76% 59.79%
Common equity (period-end)
as a percent of total
assets (period-end) 7.82% 8.00% 8.86% 9.36%
Leverage (Tier I) ratio 7.45% 7.59% 8.15% 8.63%
Tangible common equity
ratio 6.75% 6.92% 7.79% 8.24%
Net charge-offs as a
percent of average loans -0.01% 0.40% 0.34% 0.19%
Allowance for loan losses
as a percent of period-end
loans 2.51% 2.35% 1.55% 1.44%
Allowance for loan losses
to NPAs + loans 90 days
past due 432.85% 457.10% 494.65% 694.67%
Loan/deposit ratio 59.00% 57.40% 60.97% 64.34%
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%
--------------------------
2007
--------------------------
1Q 2Q
--------------------------
Per Common Share Data
---------------------
Earnings per share:
Basic $0.59 $0.63
Diluted $0.58 $0.62
Cash dividends per share $0.240 $0.240
Book value per share
(period-end) $17.27 $17.13
Tangible book value per
share (period-end) $15.05 $14.90
Weighted average number of
shares:
Basic 32,665 32,233
Diluted 33,299 32,749
Period-end number of shares 32,518 32,094
Market data:
High closing price $54.09 $44.37
Low closing price $41.88 $37.50
Period end closing price $43.98 $37.55
Trading volume 8,577 11,614
Other Period-end Data
---------------------
FTE headcount 1,929 1,944
Tangible common equity $489,430 $478,085
Tier I capital $513,229 $510,096
Goodwill $62,277 $62,277
Amortizable intangibles $8,991 $8,607
Mortgage servicing
intangibles $829 $729
Common shares repurchased
for publicly announced
plans 228 433
Performance Ratios
------------------
Return on average assets 1.32% 1.42%
Return on average common
equity 13.77% 14.53%
Earning asset yield (TE) 6.64% 6.76%
Total cost of funds 2.60% 2.59%
Net interest margin (TE) 4.04% 4.17%
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 61.12% 61.27%
Common equity (period-end)
as a percent of total
assets (period-end) 9.61% 9.36%
Leverage (Tier I) ratio 8.80% 9.01%
Tangible common equity
ratio 8.48% 8.24%
Net charge-offs as a
percent of average loans 0.18% 0.18%
Allowance for loan losses
as a percent of period-end
loans 1.41% 1.35%
Allowance for loan losses
to NPAs + loans 90 days
past due 413.60% 410.98%
Loan/deposit ratio 65.91% 69.62%
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) 32.48% 35.94%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
-------------------------
2005
-------------------------
3Q 4Q
-------------------------
Asset Quality Information
-------------------------
Non-accrual loans $10,373 $10,617
Foreclosed assets 2,973 1,898
-------------------------
Total non-performing assets $13,346 $12,515
Non-performing assets as a
percent of loans and foreclosed
assets 0.45% 0.42%
Accruing loans 90 days past due $6,156 $25,622
Accruing loans 90 days past due as
a percent of loans 0.21% 0.86%
Non-performing assets + accruing
loans 90 days past due to loans
and foreclosed assets 0.65% 1.28%
Net charge-offs $1,704 $3,104
Net charge-offs as
a percent of average loans 0.23% 0.41%
Allowance for loan losses $76,584 $74,558
Allowance for loan losses as a
percent of period-end loans 2.59% 2.51%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 392.70% 195.50%
Provision for (recovery of) loan
losses $36,905 $1,079
Net Charge-off Information
--------------------------
Net charge-offs:
Commercial/real estate loans ($17) $332
Mortgage loans 7 (7)
Direct consumer loans 861 1,831
Indirect consumer loans 342 272
Finance company loans 511 676
--------------------------
Total net charge-offs $1,704 $3,104
--------------------------
Average loans:
Commercial/real estate loans $1,584,244 $1,660,804
Mortgage loans 430,615 442,977
Direct consumer loans 504,362 489,150
Indirect consumer loans 335,482 342,203
Finance Company loans 64,006 63,663
-------------------------
Total average
loans $2,918,709 $2,998,797
Net charge-offs to average loans:
Commercial/real estate loans 0.00% 0.08%
Mortgage loans 0.01% -0.01%
Direct consumer loans 0.68% 1.49%
Indirect consumer loans 0.40% 0.32%
Finance Company loans 3.17% 4.21%
-------------------------
Total net charge-offs to
average loans 0.23% 0.41%
-------------------------
-------------------------------------------------
2006
-------------------------------------------------
1Q 2Q 3Q 4Q
-------------------------------------------------
Asset Quality
Information
-------------
Non-accrual
loans $8,676 $7,237 $5,179 $3,500
Foreclosed
assets 1,779 1,606 970 681
-------------------------------------------------
Total
non-performing
assets $10,455 $8,843 $6,149 $4,181
Non-performing
assets as a
percent of
loans and
foreclosed
assets 0.35% 0.29% 0.20% 0.13%
Accruing loans
90 days past
due $6,632 $6,681 $3,626 $2,552
Accruing loans
90 days past
due as a
percent of
loans 0.22% 0.22% 0.12% 0.08%
Non-performing
assets +
accruing loans
90 days past
due to loans
and foreclosed
assets 0.57% 0.51% 0.31% 0.21%
Net charge-offs ($108) $3,001 $2,608 $1,522
Net charge-offs
as a percent of
average loans -0.01% 0.40% 0.34% 0.19%
Allowance for
loan losses $73,961 $70,960 $48,352 $46,772
Allowance for
loan losses as
a percent of
period-end
loans 2.51% 2.35% 1.55% 1.44%
Allowance for
loan losses to
NPAs + accruing
loans 90 days
past due 432.85% 457.10% 494.65% 694.67%
Provision for
(recovery of)
loan losses ($705) -- ($20,000) ($57)
Net Charge-off
Information
--------------
Net charge-offs:
Commercial/real
estate loans ($1,769) $620 $522 ($137)
Mortgage loans 181 28 367 (11)
Direct consumer
loans 579 1,681 1,003 493
Indirect
consumer loans 653 391 294 395
Finance company
loans 248 281 422 783
-------------------------------------------------
Total net
charge-offs ($108) $3,001 $2,608 $1,523
-------------------------------------------------
Average loans:
Commercial/real
estate loans $1,674,706 $1,699,768 $1,759,173 $1,855,506
Mortgage loans 410,023 410,522 423,610 428,674
Direct consumer
loans 469,832 463,977 470,771 479,087
Indirect
consumer loans 351,405 348,463 347,404 350,829
Finance Company
loans 64,496 71,461 79,483 86,965
-------------------------------------------------
Total average
loans $2,970,461 $2,994,191 $3,080,442 $3,201,061
Net charge-offs
to average loans:
Commercial/real
estate loans -0.43% 0.15% 0.12% -0.03%
Mortgage loans 0.18% 0.03% 0.34% -0.01%
Direct consumer
loans 0.50% 1.45% 0.85% 0.41%
Indirect
consumer loans 0.75% 0.45% 0.34% 0.45%
Finance Company
loans 1.56% 1.58% 2.11% 3.57%
-------------------------------------------------
Total net
charge-offs to
average loans -0.01% 0.40% 0.34% 0.19%
-------------------------------------------------
-------------------------
2007
-------------------------
1Q 2Q
-------------------------
Asset Quality Information
-------------------------
Non-accrual loans $4,494 $7,544
Foreclosed assets 718 1,146
-------------------------
Total non-performing assets $5,212 $8,690
Non-performing assets as a
percent of loans and foreclosed
assets 0.16% 0.25%
Accruing loans 90 days past due $6,035 $2,558
Accruing loans 90 days past due as
a percent of loans 0.18% 0.07%
Non-performing assets + accruing
loans 90 days past due to loans
and foreclosed assets 0.34% 0.33%
Net charge-offs $1,466 $1,529
Net charge-offs as
a percent of average loans 0.18% 0.18%
Allowance for loan losses $46,517 $46,227
Allowance for loan losses as a
percent of period-end loans 1.41% 1.35%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 413.60% 410.98%
Provision for (recovery of) loan
losses $1,211 $1,238
Net Charge-off Information
--------------------------
Net charge-offs:
Commercial/real estate loans $168 ($63)
Mortgage loans 23 (22)
Direct consumer loans 110 618
Indirect consumer loans 676 471
Finance company loans 489 525
-------------------------
Total net charge-offs $1,466 $1,529
-------------------------
Average loans:
Commercial/real estate loans $1,931,966 $1,989,420
Mortgage loans 426,103 433,310
Direct consumer loans 485,201 487,267
Indirect consumer loans 357,008 360,451
Finance Company loans 92,315 101,092
-------------------------
Total average
loans $3,292,593 $3,371,540
Net charge-offs to average loans:
Commercial/real estate loans 0.04% -0.01%
Mortgage loans 0.02% -0.02%
Direct consumer loans 0.09% 0.51%
Indirect consumer loans 0.77% 0.52%
Finance Company loans 2.15% 2.08%
-------------------------
Total net charge-offs to
average loans 0.18% 0.18%
-------------------------
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
-------------------------
2005
-------------------------
3Q 4Q
-------------------------
Income Statement
----------------
Interest income $65,644 $73,429
Interest income (TE) 67,506 75,433
Interest expense 19,659 20,911
-------------------------
Net interest income (TE) 47,847 54,522
Provision for (recovery of)
loan losses 36,905 1,079
Noninterest income excluding
net storm-related gain/(loss)
and securities transactions 21,600 23,016
Net storm-related gain/(loss) 12,276 (5,692)
Securities transactions
gains/(losses) (18) (27)
Noninterest expense 42,770 44,626
-------------------------
Income before income taxes 168 24,112
Income tax expense (1,267) 5,047
-------------------------
Net Income $1,435 $19,065
=========================
Noninterest Income
and Noninterest Expense
-------------------------
Service charges on deposit
accounts $7,975 $6,850
Trust fees 2,761 2,946
Debit card & merchant fees 1,055 1,717
Insurance fees 4,883 4,837
Investment & annuity fees 1,304 1,037
ATM fees 871 805
Secondary mortgage market
operations 377 670
Other income 2,374 4,154
-------------------------
Noninterest income excluding
net storm-related gain/(loss)
and securities transactions $21,600 $23,016
Net storm-related gain/(loss) 12,276 (5,692)
Securities transactions
gains/(losses) (18) (27)
-------------------------
Total noninterest income including
storm-related gain/(loss) and
securities transactions $33,858 $17,298
=========================
Personnel expense $24,275 $24,580
Occupancy expense (net) 2,617 3,237
Equipment expense 2,319 2,511
Other operating expense 13,044 13,780
Amortization of intangibles 514 518
-------------------------
Total noninterest expense $42,770 $44,626
-------------------------
----------------------------------------
2006
----------------------------------------
1Q 2Q 3Q 4Q
----------------------------------------
Income Statement
----------------
Interest income $81,590 $86,403 $89,233 $87,104
Interest income (TE) 83,570 88,382 91,275 89,366
Interest expense 25,273 28,636 31,988 33,966
----------------------------------------
Net interest income
(TE) 58,297 59,746 59,286 55,400
Provision for
(recovery of) loan
losses (705) -- (20,000) (57)
Noninterest income
excluding net
storm-related
gain/(loss) and
securities
transactions 24,890 25,942 25,627 27,460
Net storm-related
gain/(loss) -- -- -- 5,084
Securities
transactions
gains/(losses) 118 -- 110 (5,396)
Noninterest expense 49,165 51,172 50,336 50,042
----------------------------------------
Income before income taxes 32,865 32,536 52,645 30,300
Income tax expense 10,854 10,539 16,614 8,538
----------------------------------------
Net income $22,011 $21,998 $36,031 $21,762
========================================
Noninterest Income
and Noninterest
Expense
------------------
Service charges on
deposit accounts $7,884 $9,223 $9,719 $9,402
Trust fees 3,078 3,409 3,175 3,624
Debit card & merchant
fees 1,709 1,863 1,744 1,983
Insurance fees 5,159 4,596 4,146 5,346
Investment & annuity
fees 1,264 1,591 1,595 1,519
ATM fees 1,294 1,273 1,223 1,215
Secondary mortgage
market operations 817 749 1,018 945
Other income 3,684 3,239 3,009 3,426
----------------------------------------
Noninterest income
excluding net
storm-related
gain/(loss) and
securities
transactions $24,890 $25,942 $25,627 $27,460
Net storm-related
gain/(loss) -- -- 0 5,084
Securities transactions
gains/(losses) 118 -- 110 (5,396)
----------------------------------------
Total noninterest
income including
storm-related
gain/(loss) and
securities
transactions $25,008 $25,942 $25,737 $27,147
========================================
Personnel expense $26,202 $26,400 $27,059 $24,092
Occupancy expense
(net) 3,659 3,474 2,882 3,335
Equipment expense 2,668 2,816 2,647 2,665
Other operating
expense 15,961 17,976 17,304 19,451
Amortization of
intangibles 675 507 445 499
----------------------------------------
Total noninterest
expense $49,165 $51,172 $50,336 $50,042
----------------------------------------
-------------------------
2007
-------------------------
1Q 2Q
-------------------------
Income Statement
----------------
Interest income $85,708 $84,938
Interest income (TE) 88,124 87,204
Interest expense 34,308 33,394
-------------------------
Net interest income (TE) 53,816 53,810
Provision for (recovery of)
loan losses 1,211 1,238
Noninterest income excluding
net storm-related gain/(loss)
and securities transactions 25,889 30,193
Net storm-related gain/(loss) -- --
Securities transactions
gains/(losses) 6 34
Noninterest expense 49,140 51,857
-------------------------
Income before income taxes 26,944 28,676
Income tax expense 7,715 8,352
-------------------------
Net income $19,229 $20,323
=========================
Noninterest Income
and Noninterest Expense
-------------------------
Service charges on deposit
accounts $9,190 $10,471
Trust fees 3,693 4,124
Debit card & merchant fees 1,778 2,171
Insurance fees 4,369 5,033
Investment & annuity fees 1,978 2,018
ATM fees 1,324 1,358
Secondary mortgage market
operations 911 1,116
Other income 2,646 3,903
Noninterest income excluding
net storm-related gain/(loss)
and securities transactions $25,889 $30,193
Net storm-related gain/(loss) -- --
Securities transactions
gains/(losses) 6 34
-------------------------
Total noninterest income including
storm-related gain/(loss) and
securities transactions $25,895 $30,227
=========================
Personnel expense $26,563 $24,837
Occupancy expense (net) 4,073 4,469
Equipment expense 2,272 2,768
Other operating expense 15,809 19,398
Amortization of intangibles 423 384
-------------------------
Total noninterest expense $49,140 $51,857
-------------------------