Hancock Holding Company Announces Earnings for Third Quarter 2007


GULFPORT, Miss., Oct. 16, 2007 (PRIME NEWSWIRE) -- Hancock Holding Company (Nasdaq:HBHC) announced earnings for the third quarter ended September 30, 2007. Hancock's third quarter 2007 earnings were $17.7 million, a decrease of $18.3 million, or 50.8 percent, from the third quarter of 2006. Diluted earnings per share for the third quarter of 2007 were $0.55, a decrease of $0.56 from the same quarter a year ago. Earnings for the third quarter of 2007 were down $2.6 million, or 12.72 percent, from the second quarter of 2007. Diluted earnings per share were down $0.07 from the second quarter of 2007.

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, adding $13.0 million in after-tax earnings and $.39 in diluted earnings per share to the third quarter of 2006. Excluding the aforementioned reserve reversal, net earnings in the third quarter were down $5.2 million, or 22.84 percent, from the same quarter a year ago and diluted earnings per share were down $0.14.

Chief Executive Officer Carl J. Chaney commented on Hancock's third quarter results, "The comparison to last year was affected by the partial reversal of the storm-related allowance that took place in 2006. The primary driver of the quarter's earnings was higher expense levels, mostly in personnel, buildings and equipment costs -- mainly related to ongoing recovery efforts and expansions in new or existing markets. A plan of action has been undertaken to reduce our operating costs across all aspects of our operations, which will help us quickly return to the top quartile peer performance level we have attained for the last four years."

Third Quarter 2007 Financial Highlights



 *  Net Income and Returns: Hancock's net income for the third
    quarter of 2007 was $17.7 million, compared to $36.0 million for
    the same quarter a year ago. Return on average assets for the
    quarter was 1.21 percent, compared to 2.36 percent for 2006's
    third quarter. Return on average common equity was 12.58 percent,
    compared to 27.58 percent for the same quarter a year ago. For
    the second quarter of 2007, return on average assets was 1.42
    percent and return on average common equity was 14.53 percent. As
    mentioned, third quarter 2006's earnings and return levels were
    significantly affected by a $20.0 million reversal of the
    storm-related allowance for loan losses due to better than
    expected loss experience with storm-impacted credits.

 *  Asset Quality & Allowance for Loan Losses: Hancock recorded a
    provision for loan losses of $1.6 million in the third quarter
    which, when combined with the quarter's net charge-offs of $1.9
    million, resulted in the $.3 million reduction in the allowance
    for loan losses between June 30, 2007, and September 30, 2007.
    This reduction was necessary to adjust the allowance to the level
    dictated by the Company's reserving methodologies. Net
    charge-offs for the third quarter of 2007 were $1.9 million, or
    0.21 percent of average loans, up $352 thousand from the $1.5
    million, or 0.18 percent of average loans, reported for the
    second quarter of 2007. Net charge-offs for the third quarter of
    2006 were $2.61 million or 0.34 percent of average loans.
    Non-performing assets as a percent of total loans and foreclosed
    assets was 0.28 percent at September 30, 2007, compared to 0.25
    percent at June 30, 2007. The Company's allowance for loan losses
    was $45.90 million at September 30, 2007, down $0.3 million from
    the $46.23 million reported at June 30, 2007, and $2.45 million
    lower than the $48.35 million reported at September 30, 2006. The
    ratio of the allowance for loan losses as a percent of period-end
    loans was 1.31 percent at September 30, 2007, and 1.35 percent at
    June 30, 2007.

    Chief Credit Officer Alfred Rath commented, "At this point, loan
    quality for both consumer and commercial loans continues to track
    favorably. In previous natural disasters, loan quality at
    affected financial institutions began to show signs of weakening
    at the 18-24 month milestone. We see no such degradation at this
    time but will continue to closely monitor all aspects of asset
    quality."

 *  Loans: For the quarter ended September 30, 2007, Hancock's
    average total loans were $3.5 billion, which represented an
    increase of $389.8 million, or 13 percent, from the quarter ended
    September 30, 2006. Period-end loans were up $97.1 million, or 3
    percent, compared to June 30, 2007. Average total loans were up
    $98.7 million, or 12 percent annualized, from the second quarter
    of 2007. Of that increase, approximately $39 million of growth
    was in Mississippi, $51 million in Louisiana, $8 million in
    Alabama, and $1 million in Florida. The majority of the increase
    in average loans compared to last quarter was in commercial
    purpose loans (approximately $66.5 million).

 *  Deposits: Period-end deposits for the third quarter were $5.0
    billion, down $1.06 million, or 0.02 percent, from September 30,
    2006, but were up $21.8 million, or 0.44 percent, from June 30,
    2007. Average deposits were up $95.4 million, or 8 percent
    annualized, from the second quarter of 2007. The increase in
    average deposits was in time deposits (up $181.9 million) and in
    public fund deposits (up $47.9 million). These increases were
    offset by decreases in interest-bearing transaction deposits
    (down $77.2 million) and non-interest bearing deposits (down
    $57.2 million). The majority of the decreased levels of
    transaction deposits (interest-bearing and non-interest)
    continued to be concentrated in the Company's Katrina-affected
    Mississippi markets and related to customers' reducing deposit
    levels for rebuilding purposes.

 *  Net Interest Income: Net interest income (te) for the third
    quarter decreased $5.7 million, or 10 percent, from the third
    quarter of 2006, and was down $244 thousand from the second
    quarter of 2007. The Company's net interest margin (te) was 4.06
    percent in the third quarter, 23 basis points narrower than the
    same quarter a year ago and 11 basis points narrower than the
    previous quarter. Compared to the same quarter a year ago, the
    primary driver of the $5.7 million decrease in net interest
    income (te) was a $250 million, or 4.5 percent, decrease in
    average earning assets, mainly from a reduction in funding total
    borrowings of $98.6 million, or 32 percent, and a decrease in
    average deposits of $114.1 million, or 2 percent. The slightly
    lower level of net interest income (te) in the third quarter
    compared to the second quarter was due mostly to an increase in
    the Company's funding costs, which were up 16 basis points. The
    total cost of funds was up due to an increase in the rate paid on
    time deposits (up 10 basis points) and an unfavorable change in
    the third quarter's funding mix -- higher levels of more costly
    time deposits and lower levels of transaction deposits.

 *  Non-interest income: Non-interest income for the third quarter
    was up $4.9 million, or 19 percent, compared to the same quarter
    a year ago and was up $292 thousand, or 1 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 income (up $1.4 million, or 14
    percent) and trust revenue (up $718 thousand, or 23 percent),
    investment and annuity fees (up $658 thousand), and other income
    (up $1.6 million). The increase in non-interest income (excluding
    securities transactions) for the third quarter compared to the
    prior quarter was due to increases in service charge fees (up
    $614 thousand), other income (up $703 thousand), and investment
    and annuity fees (up $235 thousand), which were mostly offset by
    reductions in insurance fees (down $777 thousand), trust fees
    (down $232 thousand), debit card income (down $149 thousand), and
    secondary mortgage operations (down $181 thousand).

 *  Operating expense: Operating expenses for the third quarter were
    $4.9 million or 10 percent, higher compared to the same quarter a
    year ago and were $3.3 million, or 6 percent, higher than the
    previous quarter. Much of the expense increase from last year and
    the prior quarter were related to ongoing recovery and rebuilding
    efforts on the part of the Company as well as an expansion into
    the Mobile, New Orleans, and Pensacola markets. The increase from
    the same quarter a year ago was reflected in higher levels of
    occupancy expense (up $1.8 million), personnel expense (up $1.5
    million), and other operating expense (up $1.4 million). The
    increase in operating expense over last quarter was due to higher
    levels of personnel expense (up $3.7 million) and occupancy
    expense (up $0.3 million), offset slightly by a reduction in other
    operating expense (down $0.7 million). Full-time equivalent
    headcount at September 30, 2007, was up 22 from June 30, 2007,
    and was up 178 compared to September 30, 2006.

Expense Control Efforts

The Company is focused on the need to control expenses and ensure that shareholder value is received for each dollar expended. To that end, Hancock has embarked on a stringent expense control plan to reduce operating expenses not directly related to expansion in new markets. A plan of action has been undertaken to improve the Company's operational efficiency through the rationalization of every large vendor relationship, reductions in total personnel expense, and tightened management accountability for all organizational business units and segments.

Chief Executive Officer John M. Hairston stated, "We are unwaveringly committed to superior performance for Hancock. We have taken immediate action to aggressively manage controllable expenses downward while continuing our investments in promising markets. Expense control initiatives will yield measurable improvements and restore the Company to top quartile performance."

Stock Repurchases

Approximately 343,000 of the Company's shares were repurchased during the third quarter of 2007 under the Stock Repurchase Plan that was approved in 2000. The Company has repurchased 1,004,000 shares through September 30, 2007, compared to 39,000 shares during the first nine months of 2006. The remaining plan shares available for repurchase at September 30, 2007, were 0.6 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. Founded October 9, 1899, Hancock Bank consistently ranks as one of the country's strongest, safest financial institutions according to Veribanc, Inc., and BauerFinancial Services, Inc. Thomson Financial also 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       Nine Months Ended
                     -------------------------------------------------
                     9/30/2007 6/30/2007 9/30/2006 9/30/2007 9/30/2006
                     -------------------------------------------------
 Per Common Share Data
 ---------------------

 Earnings per share:
  Basic                 $0.55     $0.63     $1.11     $1.77     $2.46
  Diluted               $0.55     $0.62     $1.08     $1.74     $2.41
 Cash dividends per
  share                $0.240    $0.240    $0.240    $0.720    $0.655
 Book value per
  share (period-end)   $17.55    $17.13    $16.64    $17.55    $16.64
 Tangible book value
  per share
  (period-end)         $15.32    $14.90    $14.47    $15.32    $14.47
 Weighted average
  number of shares:
  Basic                32,005    32,233    32,566    32,299    32,500
  Diluted              32,492    32,749    33,333    32,847    33,274
 Period-end number
  of shares            31,786    32,094    32,584    31,786    32,584
 Market data:
  High closing price   $43.90    $44.37    $56.79    $54.09    $57.19
  Low closing price    $32.78    $37.50    $49.71    $32.78    $37.75
  Period end closing
   price               $40.08    $37.55    $53.55    $40.08    $53.55
  Trading volume       10,290    11,614     8,135    30,485    20,883

 Other Period-end Data
 ---------------------

 FTE headcount          1,966     1,944     1,788     1,966     1,788
 Tangible common
  equity             $486,871  $478,085  $471,387  $486,871  $471,387
 Tier I capital      $508,554  $510,096  $487,668  $508,554  $487,668
 Goodwill            $ 62,277  $ 62,277  $ 59,708  $ 62,277  $ 59,708
 Amortizable
  intangibles          $8,195    $8,607    $9,913    $8,195    $9,913
 Mortgage servicing
  intangibles            $632      $729    $1,093      $632    $1,093
 Common shares
  repurchased for
  publicly announced
  plans                   343       433        --     1,004        39

 Performance Ratios
 ------------------

 Return on average
  assets                 1.21%     1.42%     2.36%     1.31%     1.77%
 Return on average
  common equity         12.58%    14.53%    27.58%    13.63%    21.42%
 Earning asset
  yield (TE)             6.81%     6.76%     6.60%     6.74%     6.36%
 Total cost of funds     2.75%     2.59%     2.30%     2.65%     2.08%
 Net interest
  margin (TE)            4.06%     4.17%     4.29%     4.09%     4.28%
 Noninterest expense
  as a percent of
  total revenue (TE)
  before amortization
  of purchased
  intangibles and
  securities
  transactions          65.18%    61.27%    58.76%    62.55%    58.73%
 Common equity
  (period-end) as a
  percent of total
  assets (period-end)    9.45%     9.36%     8.86%     9.45%     8.86%
 Leverage (Tier I)
  ratio                  8.82%     9.01%     8.15%     8.82%     8.15%
 Tangible common
  equity ratio           8.34%     8.24%     7.79%     8.34%     7.79%
 Net charge-offs as a
  percent of average
  loans                  0.21%     0.18%     0.34%     0.19%     0.24%
 Allowance for loan
  losses as a percent
  of period-end loans    1.31%     1.35%     1.55%     1.31%     1.55%
 Allowance for loan
  losses to NPAs +
  accruing loans
  90 days past due     335.22%   410.98%   494.65%   335.22%   494.65%
 Loan/deposit ratio     70.28%    69.62%    60.97%    68.60%    59.11%
 Non-interest income
  excluding
  securities
  transactions as a
  percent of total
  revenue (TE)          36.27%    35.94%    30.18%    34.94%    30.13%


 Hancock Holding Company 
 Financial Highlights
 (amounts in thousands)
 (unaudited)

                    Three Months Ended         Nine Months Ended
           ----------------------------------------------------------
            9/30/2007   6/30/2007   9/30/2006   9/30/2007   9/30/2006
           ---------------------------------------------------------- 
 Asset 
 Quality
 Information
 -----------

 Non-
  accrual
  loans        $8,500      $7,544      $5,179      $8,500      $5,179
 Foreclosed
  assets        1,374       1,146         970       1,374         970
           -----------------------------------------------------------
 Total non-
  performing
  assets       $9,874      $8,690      $6,149      $9,874      $6,149
           -----------------------------------------------------------
 Non-
  performing
  assets as
  a percent
  of loans
  and
  foreclosed
  assets         0.28%       0.25%       0.20%       0.28%       0.20%
 Accruing
  loans 90
  days past
  due          $3,819      $2,558      $3,626      $3,819      $3,626
 Accruing
  loans 90
  days past
  due as a
  percent
  of loans       0.11%       0.07%       0.12%       0.11%       0.12%
 Non-
  performing
  assets +
  accruing
  loans 90
  days past
  due to
  loans and
  foreclosed
  assets         0.39%       0.33%       0.31%       0.39%       0.31%

 Net charge-
  offs         $1,880      $1,528      $2,608      $4,873      $5,501
 Net charge-
  offs as a
  percent of
  average
  loans          0.21%       0.18%       0.34%       0.19%       0.24%

 Allowance
  for loan
  losses      $45,901     $46,227     $48,352     $45,901     $48,352
 Allowance
  for loan
  losses as
  a percent
  of period-
  end loans      1.31%       1.35%       1.55%       1.31%       1.55%
 Allowance
  for loan
  losses to
  NPAs +
  accruing
  loans 90
  days past
  due          335.22%     410.98%     494.65%     335.22%     494.65%

 Provision
  for loan
  losses       $1,554      $1,238     (20,000)     $4,002    ($20,705)

 Allowance
  for Loan
  Losses
 ---------

 Beginning
  Balance     $46,227     $46,517     $70,960     $46,772     $74,558
 Provision
  for loan
  loss          1,554       1,238     (20,000)      4,002     (20,705)
 Charge-offs    3,610       3,521       6,358      10,207      15,022
 Recoveries     1,730       1,993       3,750       5,334       9,521
           -----------------------------------------------------------
 Net charge-
  offs          1,880       1,528       2,608       4,873       5,501
           -----------------------------------------------------------
 Ending
  Balance     $45,901     $46,227     $48,352     $45,901     $48,352
           -----------------------------------------------------------

 Net Charge-off
  Information
 --------------

 Net charge-
  offs:
 Commercial/
  real
  estate
  loans          ($58)       ($63)       $522         $47       ($628)
 Mortgage
  loans            --         (22)        367           1         576
 Direct
  consumer
  loans           864         617       1,003       1,835       3,264
 Indirect
  consumer
  loans           314         471         294       1,216       1,338
 Finance
  company
  loans           760         525         422       1,774         951
           -----------------------------------------------------------
 Total net
  charge-
  offs         $1,880      $1,528      $2,608      $4,873      $5,501
           ===========================================================

 Average
  loans:
 Commercial/
  real
  estate
  loans    $2,055,922  $1,989,420  $1,759,173  $1,992,890  $1,711,525
 Mortgage
  loans       439,459     433,310     423,610     433,006     414,768
 Direct
  consumer
  loans       491,417     487,267     470,771     487,985     468,196
 Indirect
  consumer
  loans       373,677     360,451     347,404     363,773     349,076
 Finance
  Company
  loans       109,807     101,092      79,483     101,135      71,869
           -----------------------------------------------------------
 Total
  average
  loans    $3,470,282  $3,371,540  $3,080,441  $3,378,789  $3,015,434

 Net charge-
  offs to
  average
  loans:
 Commercial/
  real
  estate
  loans         -0.01%      -0.01%       0.12%       0.00%      -0.05%
 Mortgage                                         
  loans          0.00%      -0.02%       0.34%       0.00%       0.19%
 Direct                                           
  consumer                                        
  loans          0.70%       0.51%       0.85%       0.50%       0.93%
 Indirect                                         
  consumer                                        
  loans          0.33%       0.52%       0.34%       0.45%       0.51%
 Finance                                          
  Company                                         
  loans          2.74%       2.08%       2.11%       2.34%       1.77%
           -----------------------------------------------------------
 Total net                                        
  charge-                                         
  offs to                                         
  average                                         
  loans          0.21%       0.18%       0.34%       0.19%       0.24%
           -----------------------------------------------------------


 Hancock Holding Company
 Financial Highlights
 (amounts in thousands)
 (unaudited)

                     -------------------------------------------------
                          Three Months Ended        Nine Months Ended
                     -------------------------------------------------
                     9/30/2007 6/30/2007 9/30/2006 9/30/2007 9/30/2006
                     -------------------------------------------------
 Income Statement
 ----------------

 Interest income       $87,661   $84,937   $89,233  $258,307  $257,226
 Interest income
  (TE)                  90,033    87,204    91,275   265,362   263,226
 Interest expense       36,467    33,394    31,988   104,169    85,897
                     -------------------------------------------------
 Net interest
  income (TE)           53,566    53,810    59,287   161,193   177,329
 Provision for loan
  losses                 1,554     1,238   (20,000)    4,002   (20,705)
 Noninterest income
  excluding
  securities
  transactions          30,485    30,193    25,627    86,566    76,459
 Securities
  transactions
  gains/(losses)            34        34       110        74       228
 Noninterest
  expense               55,196    51,857    50,337   156,192   150,674
                     -------------------------------------------------
 Income before
  income taxes          24,963    28,675    52,645    80,584   118,047
 Income tax expense      7,224     8,352    16,614    23,292    38,006
                     -------------------------------------------------
 Net income            $17,739   $20,323   $36,031   $57,292   $80,041
                     =================================================

 Noninterest Income
  and Noninterest
  Expense
 ------------------

 Service charges on
  deposit accounts     $11,085   $10,471    $9,719   $30,747   $26,826
 Trust fees              3,892     4,124     3,174    11,708     9,662
 Debit card &
  merchant fees          2,025     2,171     1,744     5,975     5,316
 Insurance fees          4,256     5,033     4,145    13,657    13,900
 Investment &
  annuity fees           2,253     2,018     1,595     6,249     4,450
 ATM fees                1,434     1,358     1,223     4,116     3,790
 Secondary mortgage
  market operations        935     1,116     1,018     2,962     2,583
 Other income            4,605     3,902     3,009    11,152     9,932
                     -------------------------------------------------
 Noninterest income
  excluding
  securities
  transactions         $30,485   $30,193   $25,627   $86,566   $76,459
 Securities
  transactions
  gains/(losses)            34        34       110        74       228
                     -------------------------------------------------
 Total noninterest
  income including
  securities
  transactions         $30,519   $30,227   $25,737   $86,640   $76,687
                     =================================================

 Personnel expense     $28,531   $24,837   $27,059   $79,932   $79,661
 Occupancy expense
  (net)                  4,731     4,469     2,882    13,273    10,015
 Equipment expense       2,814     2,768     2,647     7,855     8,131
 Other operating
  expense               18,708    19,399    17,304    53,913    51,241
 Amortization of
  intangibles              412       384       445     1,219     1,626
                     -------------------------------------------------
 Total noninterest
  expense              $55,196   $51,857   $50,337  $156,192  $150,674
                     =================================================

  Hancock Holding Company 
  Financial Highlights
  (amounts in thousands)
  (unaudited)

                        Three Months Ended         Nine Months Ended
                -------------------------------- ---------------------
                 9/30/2007  6/30/2007  9/30/2006  9/30/2007  9/30/2006
                ---------- ---------- ---------- ---------- ----------
 Period-end 
  Balance Sheet           
 --------------
                    
 Commercial/
  real estate
  loans         $2,090,992 $2,044,170 $1,800,643 $2,090,992 $1,800,643
 Mortgage loans    432,154    420,342    416,691    432,154    416,691
 Direct
  consumer
  loans            494,667    481,565    471,837    494,667    471,837
 Indirect
  consumer
  loans            380,561    364,375    350,013    380,561    350,013
 Finance
  Company loans    114,919    105,700     83,278    114,919     83,278
                ---------- ---------- ---------- ---------- ----------
 Total loans     3,513,293  3,416,152  3,122,462  3,513,293  3,122,462
 Loans held for
  sale              17,698     25,198     18,700     17,698     18,700
 Securities      1,681,850  1,617,204  2,303,396  1,681,850  2,303,396
 Short-term
  investments       99,176    196,944     74,903     99,176     74,903
                ---------- ---------- ---------- ---------- ----------
 Earning assets  5,312,017  5,255,498  5,519,461  5,312,017  5,519,461
                ---------- ---------- ---------- ---------- ----------
 Allowance for
  loan losses      (45,901)   (46,227)   (48,352)   (45,901)   (48,352)
 Other assets      639,937    665,535    650,556    639,937    650,556
                ---------- ---------- ---------- ---------- ----------
 Total assets   $5,906,053 $5,874,806 $6,121,665 $5,906,053 $6,121,665
                ========== ========== ========== ========== ==========

 Noninterest
  bearing
  deposits      $  891,842 $  938,702 $1,062,392 $  891,842 $1,062,392
 Interest
  bearing
  transaction
  deposits       1,357,835  1,412,123  1,510,785  1,357,835  1,510,785
 Interest
  bearing
  Public Fund
  deposits         837,073    891,803    795,927    837,073    795,927
 Time deposits   1,912,799  1,735,105  1,631,504  1,912,799  1,631,504
                ---------- ---------- ---------- ---------- ----------
 Total interest
  bearing
  deposits       4,107,707  4,039,031  3,938,216  4,107,707  3,938,216
                ---------- ---------- ---------- ---------- ----------
 Total deposits  4,999,549  4,977,733  5,000,608  4,999,549  5,000,608
 Other borrowed
  funds            216,481    208,938    430,827    216,481    430,827
 Other
  liabilities      132,048    138,437    148,129    132,048    148,129
 Common
  shareholders'
  equity           557,975    549,698    542,101    557,975    542,101
                ---------- ---------- ---------- ---------- ----------
 Total
  liabilities &
  common equity $5,906,053 $5,874,806 $6,121,665 $5,906,053 $6,121,665
                ========== ========== ========== ========== ==========
 Average
  Balance Sheet
 --------------

 Commercial/
  real estate
  loans         $2,055,922 $1,989,420 $1,759,173 $1,992,890 $1,711,525
 Mortgage loans    439,458    433,310    423,610    433,006    414,768
 Direct
  consumer
  loans            491,417    487,267    470,771    487,985    468,196
 Indirect
  consumer
  loans            373,677    360,451    347,404    363,773    349,076
 Finance
  Company loans    109,808    101,092     79,483    101,135     71,869
                ---------- ---------- ---------- ---------- ----------
 Total loans     3,470,282  3,371,540  3,080,441  3,378,789  3,015,434
 Securities      1,668,279  1,733,869  2,334,242  1,743,641  2,254,068
 Short-term
  investments      120,116     67,520     94,026    139,323    255,265
                ---------- ---------- ---------- ---------- ----------
 Earning
  average
  assets         5,258,677  5,172,929  5,508,709  5,261,753  5,524,767
                ---------- ---------- ---------- ---------- ----------
 Allowance for
  loan losses      (46,216)   (46,511)   (61,525)   (46,475)   (69,840)
 Other assets      624,566    607,941    602,833    610,249    590,642
                ---------- ---------- ---------- ---------- ----------
 Total assets   $5,837,027 $5,734,359 $6,050,017 $5,825,527 $6,045,569
                ========== ========== ========== ========== ==========
 Noninterest
  bearing
  deposits      $  893,455 $  950,637 $1,098,716 $  942,360 $1,158,844
 Interest
  bearing
  transaction
  deposits       1,383,851  1,461,092  1,590,318  1,445,384  1,666,689
 Interest
  bearing
  Public Fund
  deposits         823,316    775,431    791,825    806,476    780,947
 Time deposits   1,837,292  1,655,322  1,571,129  1,730,787  1,494,748
                ---------- ---------- ---------- ---------- ----------
 Total interest
  bearing
  deposits       4,044,459  3,891,845  3,953,272  3,982,647  3,942,384
                ---------- ---------- ---------- ---------- ----------
 Total deposits  4,937,914  4,842,482  5,051,988  4,925,007  5,101,228
 Other borrowed
  funds            206,072    197,261    304,686    203,025    267,666
 Other
  liabilities      133,695    133,783    175,093    135,396    177,183
 Common
  shareholders'
  equity           559,346    560,833    518,250    562,099    499,492
                ---------- ---------- ---------- ---------- ----------
 Total
  liabilities &
  common equity $5,837,027 $5,734,359 $6,050,017 $5,825,527 $6,045,569
                ========== ========== ========== ========== ==========

 Hancock Holding Company
 Financial Highlights
 (amounts in thousands)
 (unaudited)

                    Three Months Ended            Nine Months Ended
           -----------------------------------------------------------
            9/30/2007   6/30/2007   9/30/2006   9/30/2007   9/30/2006
           -----------------------------------------------------------
 Average
  Balance
  Sheet Mix
 -----------
 Percentage
  of earning 
  assets/
  funding
  sources:
 Loans          65.99%      65.17%      55.92%      64.21%      54.58%
 Securities     31.73%      33.52%      42.37%      33.14%      40.80%
 Short-term
  investments    2.28%       1.31%       1.71%       2.65%       4.62%
           -----------------------------------------------------------
 Earning
  average
  assets       100.00%     100.00%     100.00%     100.00%     100.00%
           ===========================================================
 Noninterest
  bearing
  deposits      16.99%      18.38%      19.95%      17.91%      20.98%
 Interest
  bearing
  transaction
  deposits      26.32%      28.24%      28.87%      27.47%      30.16%
 Interest
  bearing
  Public
  Fund
  deposits      15.66%      14.99%      14.37%      15.33%      14.14%
 Time
  deposits      34.93%      32.01%      28.52%      32.89%      27.06%
           -----------------------------------------------------------
 Total
  deposits      93.90%      93.62%      91.71%      93.60%      92.34%
 Other
  borrowed
  funds          3.92%       3.81%       5.53%       3.86%       4.84%
 Other net
  interest-
  free
  funding
  sources        2.18%       2.57%       2.76%       2.54%       2.82%
           -----------------------------------------------------------
 Total
  average
  funding
  sources      100.00%     100.00%     100.00%     100.00%     100.00%
           ===========================================================

 Loan mix:
 Commercial/
  real
  estate
  loans         59.25%      59.01%      57.11%      58.98%      56.76%
 Mortgage
  loans         12.66%      12.85%      13.75%      12.82%      13.75%
 Direct
  consumer
  loans         14.16%      14.45%      15.28%      14.44%      15.53%
 Indirect
  consumer
  loans         10.77%      10.69%      11.28%      10.77%      11.58%
 Finance
  Company
  loans          3.16%       3.00%       2.58%       2.99%       2.38%
           -----------------------------------------------------------
 Total 
  loans        100.00%     100.00%     100.00%     100.00%     100.00%
           ===========================================================
 Average
  dollars
  (in
  thousands):
 Loans     $3,470,282  $3,371,540  $3,080,441  $3,378,789  $3,015,434
 Securities 1,668,279   1,733,869   2,334,242   1,743,641   2,254,068
 Short-term
  investments 120,116      67,520      94,026     139,323     255,265
           -----------------------------------------------------------
 Earning
  average
  assets   $5,258,677  $5,172,929  $5,508,709  $5,261,753  $5,524,767

 Noninterest
  bearing
  deposits   $893,455    $950,637  $1,098,716    $942,360  $1,158,844
 Interest
  bearing
  transaction
  deposits  1,383,851   1,461,092   1,590,318   1,445,384   1,666,689
 Interest
  bearing
  Public
  Fund
  deposits    823,316     775,431     791,825     806,476     780,947
 Time
  deposits  1,837,292   1,655,322   1,571,129   1,730,787   1,494,748
           -----------------------------------------------------------
 Total
  deposits  4,937,914   4,842,482   5,051,988   4,925,007   5,101,228
 Other
  borrowed
  funds       206,072     197,261     304,686     203,025     267,666
 Other
  net
  interest-
  free
  funding
  sources     114,691     133,186     152,035     133,721     155,873
           -----------------------------------------------------------
 Total
  average
  funding
  sources  $5,258,677  $5,172,929  $5,508,709  $5,261,753  $5,524,767

 Loans:
 Commercial/
  real
  estate
  loans    $2,055,922  $1,989,420  $1,759,173  $1,992,890  $1,711,525
 Mortgage
  loans       439,458     433,310     423,610     433,006     414,768
 Direct
  consumer
  loans       491,417     487,267     470,771     487,985     468,196
 Indirect
  consumer
  loans       373,677     360,451     347,404     363,773     349,076
 Finance
  Company
  loans       109,808     101,092      79,483     101,135      71,869
           -----------------------------------------------------------
 Total
  average
  loans    $3,470,282  $3,371,540  $3,080,441  $3,378,789  $3,015,434

                            
 Hancock Holding Company                                  
 Average Balance and Net Interest Margin Summary
 (amounts in thousands)
 (unaudited)

              -------------------------------------------------------
                               Three Months Ended
              -------------------------------------------------------
                            09/30/07                06/30/07
              -------------------------------------------------------
               Interest    Volume    Rate    Interest   Volume   Rate
              ---------- ---------- ------  ---------- -------- ------

 Average
  Earning
  Assets
 Commercial
  & real
  estate
  loans (TE)  $   38,563 $2,055,922 7.45% $   36,689  $1,989,420 7.40%
 Mortgage
  loans            6,764    439,458 6.16%      6,677     433,310 6.16%
 Consumer
  loans           21,871    974,902 8.90%     20,978     948,810 8.87%
 Loan fees &
  late
  charges            257         -- 0.00%        291          -- 0.00%
              ---------- ---------- ----------------  ---------- ----
  Total
  loans (TE)  $   67,455  3,470,282 7.72% $   64,635  $3,371,540 7.69%


 U.S. treasury
  securities         128     11,169 4.53%        414      34,141 4.87%
 U.S. agency
  securities      10,223    801,585 5.10%     10,987     866,747 5.07%
 CMOs                830     80,989 4.10%        948      93,145 4.07%
 Mortgage
  backed
  securities       6,557    513,545 5.11%      5,847     469,500 4.98%
 Municipals
  (TE)             2,634    195,956 5.38%      2,653     196,861 5.39%

 Other
  securities         817     65,035 5.03%        932      73,475 5.07%
              ---------- ---------- ----------------  ---------- ----
  Total
  securities
  (TE)            21,189  1,668,279 5.08%     21,781   1,733,869 5.03%


  Total
   short-term
   investments     1,389    120,116 4.59%        788      67,520 4.68%

  Average
   earning
   assets
   yield (TE) $   90,033  5,258,677 6.81% $   87,204   5,172,929 6.76%

 Interest-
  bearing
  Liabilities
 Interest-
  bearing
  transaction
  deposits    $    4,682 $1,383,851 1.34% $    4,913  $1,461,092 1.35%
 Time
  deposits        21,295  1,837,292 4.60%     18,555   1,655,322 4.50%
 Public
  Funds            8,753    823,316 4.22%      8,439     775,431 4.37%
              ---------- ---------- ----------------  ---------- ----
  Total
   interest
   bearing
   deposits   $   34,730  4,044,459 3.41% $   31,907  $3,891,845 3.29%

  Total
   borrowings      1,892    206,072 3.64%      1,814     197,261 3.65%

  Capitalized
   Interest         (155)                       (327)

  Total
   interest
   bearing
   liab cost      36,467 $4,250,531 3.40%     33,394  $4,089,106 3.28%

 Noninterest-
  bearing
  deposits                  893,455                      950,637
 Other net
  interest-
  free
  funding
  sources                   114,691                      133,186

 Total Cost
  of Funds        36,467 $5,258,677 2.75%     33,394  $5,172,929 2.59%

 Net Interest
  Spread (TE) $   53,566            3.41% $   53,810             3.48%

 Net Interest
  Margin (TE) $   53,566 $5,258,677 4.06% $   53,810 $5,172,929  4.17%
 -------------------------------------------------------------------

                                              Three Months Ended
                                        -----------------------------
                                                  09/30/06
                                        -----------------------------
                                         Interest     Volume     Rate
                                        ----------  ----------   ----
 Average Earning Assets
 Commercial & real estate loans (TE)    $   32,520  $1,759,173   7.34%
 Mortgage loans                              6,411     423,610   6.05%
 Consumer loans                             19,547     897,658   8.64%
 Loan fees & late charges                    2,710          --   0.00%
                                        ----------  ----------   ----
  Total loans (TE)                      $   61,188  $3,080,441   7.89%

 U.S. treasury securities                      855      67,966   4.99%
 U.S. agency securities                     16,456   1,356,478   4.85%
 CMOs                                        1,439     145,494   3.96%
 Mortgage backed securities                  6,231     511,372   4.87%
 Municipals (TE)                             2,936     174,744   6.72%
 Other securities                            1,042      78,188   5.33%
                                        ----------  ----------   ----
  Total securities (TE)                     28,959   2,334,242   4.96%

  Total short-term investments               1,128      94,026   4.76%

  Average earning assets yield (TE)     $   91,275  $5,508,709   6.60%

 Interest-bearing Liabilities
 Interest-bearing transaction deposits  $    3,955  $1,590,318   0.99%
 Time deposits                              16,352   1,571,129   4.13%
 Public Funds                                8,629     791,825   4.32%
                                        ----------  ----------   ----
  Total interest bearing deposits       $   28,936  $3,953,272   2.90%

  Total borrowings                           3,202     304,686   4.17%

  Capitalized Interest                        (150)

  Total interest bearing liab cost      $   31,988  $4,257,958   2.98%

 Noninterest-bearing deposits                        1,098,716
 Other net interest-free funding sources               152,035

 Total Cost of Funds                    $   31,988  $5,508,709   2.30%

 Net Interest Spread (TE)               $   59,287               3.62%

 Net Interest Margin (TE)               $   59,287  $5,508,709   4.29%
 --------------------------------------------------------------------

 Hancock Holding Company                             
 Average Balance and Net Interest Margin Summary
 (amounts in thousands)
 (unaudited)

             --------------------------------------------------------
                                Nine Months Ended
             --------------------------------------------------------
                         9/30/2007                 9/30/2006
             --------------------------------------------------------
              Interest    Volume     Rate   Interest    Volume   Rate
             ---------- ----------   ----  ---------- ---------- ----
 Average
  Earning
  Assets
 Commercial &
  real estate
  loans (TE) $  110,483 $1,992,890   7.41% $   91,769 $1,711,525 7.17%
 Mortgage
  loans          19,950    433,006   6.14%     18,289    414,768 5.88%
 Consumer
  loans          63,045    952,893   8.85%     55,376    889,141 8.33%
 Loan fees &
  late 
  charges           992         --   0.00%      7,506         -- 0.00%
             ---------- ----------   ----  ---------- ---------- ----
  Total loans
  (TE)          194,470 $3,378,789   7.69%    172,940 $3,015,434 7.66%

 U.S. 
  treasury
  securities      1,278     35,083   4.87%      1,936     56,722 4.56%
 U.S. agency
  securities     32,966    869,107   5.06%     46,196  1,299,845 4.74%
 CMOs             2,882     93,941   4.09%      4,874    164,723 3.95%
 Mortgage
  backed
  securities     17,887    476,077   5.01%     17,393    491,177 4.72%
 Municipals
  (TE)            8,148    197,200   5.51%      8,344    165,533 6.72%
 Other
  securities      2,671     72,233   4.93%      2,859     76,068 5.01%
             ---------- ----------   ----  ---------- ---------- ----
  Total
   securities
   (TE)          65,832  1,743,641   5.03%     81,602  2,254,068 4.83%

  Total short-
   term
   investments    5,060    139,323   4.86%      8,684    255,265 4.55%

  Average
   earning
   assets
   yield 
   (TE)      $  265,362 $5,261,753   6.74% $  263,226 $5,524,767 6.36%

 Interest-
  Bearing
  Liabilities
 Interest-
  bearing
  transaction
  deposits   $   14,360 $1,445,384   1.33% $   11,001 $1,666,689 0.88%
 Time deposits   58,871  1,730,787   4.55%     43,809  1,494,748 3.92%
 Public Funds    26,221    806,476   4.35%     24,036    780,947 4.11%
             ---------- ----------   ----  ---------- ---------- ----
  Total
   interest
   bearing
   deposits  $   99,452 $3,982,647   3.34% $   78,846 $3,942,384 2.67%

  Total
   borrowings     5,589    203,025   3.68%      7,298    267,666 3.65%


  Capitalized
   Interest        (872)                         (247)

  Total
   interest
   bearing
   liab cost    104,169 $4,185,672   3.33% $   85,897 $4,210,050 2.73%

 Noninterest-
  bearing
  deposits                 942,360                     1,158,844
 Other net
  interest-
  free
  funding
  sources                  133,721                       155,873

 Total Cost 
  of Funds      104,169 $5,261,753   2.65% $   85,897 $5,524,767 2.08%

 Net Interest
  Spread 
  (TE)       $  161,193              3.41% $  177,329            3.64%

 Net Interest
  Margin 
  (TE)       $  161,193 $5,261,753   4.09% $  177,329 $5,524,767 4.28%
 --------------------------------------------------------------------


 Hancock Holding Company
 Quarterly Financial Data
 (amounts in thousands, except
 per share data and FTE headcount)
 (unaudited)
                           -------------------------------------------
                            2005                  2006
                           -------------------------------------------
                             4Q      1Q        2Q       3Q      4Q
                           -------------------------------------------
 Per Common Share Data
 ---------------------
 Earnings per share:
   Basic                    $0.59    $0.68    $0.68    $1.11    $0.67
   Diluted                  $0.58    $0.67    $0.66    $1.08    $0.65
 Cash dividends
  per share                $0.195   $0.195   $0.220   $0.240   $0.240
 Book value per share
  (period-end)             $14.78   $15.06   $15.12   $16.64   $17.09
 Tangible book value per
  share (period-end)       $12.55   $12.85   $12.94   $14.47   $14.87
 Weighted average number
  of shares:
   Basic                   32,313   32,393   32,531   32,566   32,632
   Diluted                 32,980   33,088   33,322   33,333   33,378
 Period-end number of
  shares                   32,301   32,494   32,555   32,584   32,666
 Market data:
   High closing price      $39.90   $46.67   $57.19   $56.79   $56.00
   Low closing price       $31.08   $37.75   $44.02   $49.71   $50.85
   Period end closing
    price                  $37.81   $46.52   $56.00   $53.55   $52.84
   Trading volume           6,829    3,990    8,737    8,135    6,393

 Other Period-end Data
 ---------------------
 FTE headcount              1,735    1,768    1,777    1,788    1,848
 Tangible common equity  $405,216 $417,684 $421,369 $471,387 $485,778
 Tier I capital          $420,281 $440,302 $457,738 $487,668 $510,638
 Goodwill                 $61,418  $61,418  $59,060  $59,708  $62,277
 Amortizable intangibles   $9,204   $8,725  $10,575   $9,913   $9,414
 Mortgage servicing
  intangibles              $1,577   $1,384   $1,256   $1,093     $941
 Common shares
  repurchased for
  publicly announced
  plans                        --       17       22       --       --

 Performance Ratios
 ------------------
 Return on average assets    1.39%    1.49%    1.45%    2.36%    1.44%
 Return on average
  common equity             15.98%   18.34%   17.89%   27.58%   15.54%
 Earning asset yield (TE)    6.14%    6.17%    6.32%    6.60%    6.54%
 Total cost of funds         1.70%    1.88%    2.05%    2.30%    2.48%
 Net interest margin (TE)    4.44%    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   56.89%   58.30%   59.13%   58.76%   59.79%
 Common equity (period-end)
  as a percent of total
  assets (period-end)        8.02%    7.82%    8.00%    8.86%    9.36%
 Leverage (Tier I) ratio     7.85%    7.45%    7.59%    8.15%    8.63%
 Tangible common equity
  ratio                      6.89%    6.75%    6.92%    7.79%    8.24%
 Net charge-offs as a
  percent of average loans   0.41%   -0.01%    0.40%    0.34%    0.19%
 Allowance for loan losses
  as a percent of period-end
  loans                      2.51%    2.51%    2.35%    1.55%    1.44%
 Allowance for loan losses
  to NPAs + loans 90 days
  past due                 195.50%  432.85%  457.10%  494.65%  694.67%
 Loan/deposit ratio         66.44%   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)     29.68%   29.92%   30.28%   30.18%   33.14%
                           -------------------------------------------


                                           ---------------------------
                                                      2007
                                           ---------------------------
                                              1Q       2Q        3Q
                                           ---------------------------
 Per Common Share Data
 ---------------------
 Earnings per share:
   Basic                                      $0.59    $0.63    $0.55
   Diluted                                    $0.58    $0.62    $0.55
 Cash dividends per share                    $0.240   $0.240   $0.240
 Book value per share (period-end)           $17.27   $17.13   $17.55
 Tangible book value per share
  (period-end)                               $15.05   $14.90   $15.32
 Weighted average number of shares:
   Basic                                     32,665   32,233   32,005
   Diluted                                   33,299   32,749   32,492
 Period-end number of shares                 32,518   32,094   31,786
 Market data:
   High closing price                        $54.09   $44.37   $43.90
   Low closing price                         $41.88   $37.50   $32.78
   Period end closing price                  $43.98   $37.55   $40.08
   Trading volume                             8,577   11,614   10,290

 Other Period-end Data
 ---------------------
 FTE headcount                                1,929    1,944    1,966
 Tangible common equity                    $489,430 $478,085 $486,871
 Tier I capital                            $513,229 $510,096 $508,554
 Goodwill                                   $62,277  $62,277  $62,277
 Amortizable intangibles                     $8,991   $8,607   $8,195
 Mortgage servicing intangibles                $829     $729     $632
 Common shares repurchased for publicly
  announced plans                               228      433      343

 Performance Ratios
 ------------------
 Return on average assets                      1.32%    1.42%    1.21%
 Return on average common equity              13.77%   14.53%   12.58%
 Earning asset yield (TE)                      6.64%    6.76%    6.81%
 Total cost of funds                           2.60%    2.59%    2.75%
 Net interest margin (TE)                      4.04%    4.17%    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        61.12%   61.27%   65.18%
 Common equity (period-end) as
  a percent of total assets (period-end)       9.61%    9.36%    9.45%
 Leverage (Tier I) ratio                       8.80%    9.01%    8.82%
 Tangible common equity ratio                  8.48%    8.24%    8.34%
 Net charge-offs as a
  percent of average loans                     0.18%    0.18%    0.21%
 Allowance for loan losses as
  a percent of period-end loans                1.41%    1.35%    1.31%
 Allowance for loan losses to
  NPAs + loans 90 days past due              413.60%  410.98%  335.22%
 Loan/deposit ratio                           65.91%   69.62%   70.28%
 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%   36.27%
                                           ---------------------------


 Hancock Holding Company
 Quarterly Financial Data
 (amounts in thousands, except
 per share data and FTE headcount)
 (unaudited)
               -------------------------------------------------------
                   2005                       2006
               -------------------------------------------------------
                    4Q         1Q         2Q         3Q         4Q
               -------------------------------------------------------
 Asset Quality
 -------------
  Information
  -----------
 Non-accrual
  loans           $10,617     $8,676     $7,237     $5,179     $3,500
 Foreclosed
  assets            1,898      1,779      1,606        970        681
               -------------------------------------------------------
 Total
  non-performing
  assets          $12,515    $10,455     $8,843     $6,149     $4,181
 Non-performing
  assets as a
  percent of
  loans and
  foreclosed
  assets             0.42%      0.35%      0.29%      0.20%      0.13%

 Accruing loans
  90 days
  past due        $25,622     $6,632     $6,681     $3,626     $2,552
 Accruing loans
  90 days
  past due as
  a percent of
  loans              0.86%      0.22%      0.22%      0.12%      0.08%
 Non-performing
  assets + accruing
  loans 90 days
  past due to
  loans and
  foreclosed
  assets             1.28%      0.57%      0.51%      0.31%      0.21%

 Net
  charge-offs      $3,104      ($108)    $3,001     $2,608     $1,523
 Net charge-offs
  as a percent
  of average loans   0.41%     -0.01%      0.40%      0.34%      0.19%

 Allowance for
  loan losses     $74,558    $73,961    $70,960    $48,352    $46,772
 Allowance for
  loan losses
  as a percent of
  period-end loans   2.51%      2.51%      2.35%      1.55%      1.44%
 Allowance for
  loan losses to
  NPAs + accruing
  loans 90 days
  past due         195.50%    432.85%    457.10%    494.65%    694.67%

 Provision for
  (recovery of)
  loan losses      $1,079      ($705)        --   ($20,000)      ($57)

 Net Charge-off
 --------------
  Information
  -----------
 Net charge-offs:
 Commercial/
  real estate
  loans              $332    ($1,769)      $620       $522      ($137)
 Mortgage loans        (7)       181         28        367        (11)
 Direct consumer
  loans             1,831        579      1,681      1,003        493
 Indirect consumer
  loans               272        653        391        294        395
 Finance company
  loans               676        248        281        422        783
               -------------------------------------------------------
 Total net
  charge-offs      $3,104      ($108)    $3,001     $2,608     $1,523
               -------------------------------------------------------

 Average loans:
 Commercial
  /real
  estate
  loans        $1,660,804 $1,674,706 $1,699,768 $1,759,173 $1,855,506
 Mortgage loans   442,977    410,023    410,522    423,610    428,674
 Direct consumer
  loans           489,150    469,832    463,977    470,771    479,087
 Indirect
  consumer loans  342,203    351,405    348,463    347,404    350,829
 Finance
  Company loans    63,663     64,495     71,461     79,483     86,965
               -------------------------------------------------------
 Total average
  loans        $2,998,797 $2,970,461 $2,994,191 $3,080,441 $3,201,061

 Net charge-offs
  to average
  loans:
 Commercial/real
  estate loans       0.08%     -0.43%      0.15%      0.12%     -0.03%
 Mortgage loans     -0.01%      0.18%      0.03%      0.34%     -0.01%
 Direct
  consumer loans     1.49%      0.50%      1.45%      0.85%      0.41%
 Indirect
  consumer loans     0.32%      0.75%      0.45%      0.34%      0.45%
 Finance
  Company loans      4.21%      1.56%      1.58%      2.11%      3.57%
               -------------------------------------------------------
 Total net
  charge-offs
  to average
  loans              0.41%     -0.01%      0.40%      0.34%      0.19%
               -------------------------------------------------------

                                   -----------------------------------
                                                   2007
                                   -----------------------------------
                                         1Q         2Q         3Q
                                   -----------------------------------
 Asset Quality Information
 -------------------------
 Non-accrual loans                     $4,494      $7,544      $8,500
 Foreclosed assets                        718       1,146       1,374
                                   -----------------------------------
 Total non-performing assets           $5,212      $8,690      $9,874
 Non-performing assets as a percent
  of loans and foreclosed assets         0.16%       0.25%       0.28%

 Accruing loans 90 days past due       $6,035      $2,558      $3,819
 Accruing loans 90 days past due as
  a percent of loans                     0.18%       0.07%       0.11%
 Non-performing assets + accruing loans
  90 days past due to loans and
  foreclosed assets                      0.34%       0.33%       0.39%

 Net charge-offs                       $1,466      $1,528      $1,880
 Net charge-offs as
  a percent of average loans             0.18%       0.18%       0.21%

 Allowance for loan losses            $46,517     $46,227     $45,901
 Allowance for loan losses as a
  percent of period-end loans            1.41%       1.35%       1.31%
 Allowance for loan losses to NPAs
  + accruing loans 90 days past due    413.60%     410.98%     335.22%

 Provision for (recovery of)
  loan losses                          $1,211      $1,238      $1,554

 Net Charge-off Information
 --------------------------
 Net charge-offs:
 Commercial/real estate loans            $168        ($63)       ($58)
 Mortgage loans                            23         (22)         --
 Direct consumer loans                    110         617         864
 Indirect consumer loans                  676         471         314
 Finance company loans                    489         525         760
                                   -----------------------------------
 Total net charge-offs                 $1,466      $1,528      $1,880
                                   -----------------------------------

 Average loans:
 Commercial/real estate loans      $1,931,966  $1,989,420  $2,055,922
 Mortgage loans                       426,103     433,310     439,459
 Direct consumer loans                485,201     487,267     491,417
 Indirect consumer loans              357,008     360,451     373,677
 Finance Company loans                 92,315     101,092     109,807
                                   -----------------------------------
 Total average loans               $3,292,593  $3,371,540  $3,470,282

 Net charge-offs to average loans:
 Commercial/real estate loans            0.04%      -0.01%      -0.01%
 Mortgage loans                          0.02%      -0.02%       0.00%
 Direct consumer loans                   0.09%       0.51%       0.70%
 Indirect consumer loans                 0.77%       0.52%       0.33%
 Finance Company loans                   2.15%       2.08%       2.74%
                                   -----------------------------------
 Total net charge-offs to
  average loans                          0.18%       0.18%       0.21%
                                   -----------------------------------
 Hancock Holding Company
 Quarterly Financial Data
 (amounts in thousands, except
 per share data and FTE headcount)

                      ------------------------------------------------
  (unaudited)           2005                   2006
                      ------------------------------------------------
                         4Q        1Q        2Q        3Q        4Q
                      --------  --------  --------  --------  --------
 Income Statement   
 ----------------
              
 Interest income      $ 73,430  $ 81,590  $ 86,403  $ 89,233  $ 87,103
 Interest income (TE)   75,433    83,570    88,382    91,275    89,366
 Interest expense       20,911    25,273    28,636    31,988    33,966
                      --------  --------  --------  --------  --------
 Net interest income
  (TE)                  54,522    58,297    59,746    59,287    55,400

 Provision for
  (recovery of) loan
  losses                 1,079      (705)       --   (20,000)      (57)
 Noninterest income
  excluding net storm
  -related gain/(loss)
  and securities
  transactions          23,016    24,890    25,942    25,627    27,460
 Net storm-related
  gain/(loss)           (5,692)       --        --        --     5,084
 Securities
  transactions gains/
  (losses)                 (27)      118        --       110    (5,396)
 Noninterest expense    44,625    49,165    51,172    50,337    50,042
                      --------  --------  --------  --------  --------
 Income before income
  taxes                 24,112    32,865    32,537    52,645    30,300
 Income tax expense      5,047    10,854    10,539    16,614     8,538
                      --------  --------  --------  --------  --------
 Net income           $ 19,065  $ 22,011  $ 21,998  $ 36,031  $ 21,762
                      ========  ========  ========  ========  ========
 Noninterest Income
  and Noninterest
  Expense
 ------------------

 Service charges on
  deposit accounts    $  6,850  $  7,884  $  9,223  $  9,719  $  9,402
 Trust fees              2,946     3,079     3,409     3,174     3,624
 Debit card & merchant
  fees                   1,717     1,709     1,863     1,744     1,983
 Insurance fees          4,837     5,159     4,596     4,145     5,346
 Investment & annuity
  fees                   1,037     1,264     1,591     1,595     1,519
 ATM fees                  805     1,294     1,273     1,223     1,215
 Secondary mortgage
  market operations        670       817       749     1,018       945
 Other income            4,154     3,684     3,238     3,009     3,426
                      --------  --------  --------  --------  --------
 Noninterest income
  excluding net storm-
  related gain/(loss)
  and securities
  transactions        $ 23,016  $ 24,891  $ 25,941  $ 25,627  $ 27,460

 Net storm-related
  gain/(loss)           (5,692)       --        --         0     5,084

 Securities
  transactions gains/
  (losses)                 (27)      118        --       110    (5,396)
                      --------  --------  --------  --------  --------
 Total noninterest
  income including
  storm-related gain/
  (loss) and
  securities
  transactions        $ 17,298  $ 25,008  $ 25,942  $ 25,737  $ 27,148
                      ========  ========  ========  ========  ========

 Personnel expense    $ 24,580  $ 26,202  $ 26,400  $ 27,059  $ 24,092
 Occupancy expense
  (net)                  3,237     3,659     3,474     2,882     3,335
 Equipment expense       2,511     2,668     2,816     2,647     2,665
 Other operating
  expense               13,780    15,961    17,975    17,304    19,451
 Amortization of
  intangibles              518       675       507       445       499
                      --------  --------  --------  --------  --------
 Total noninterest
  expense             $ 44,626  $ 49,165  $ 51,172  $ 50,337  $ 50,042
                      --------  --------  --------  --------  --------

                                         ----------------------------
                                                     2007
                                         ----------------------------
                                            1Q        2Q        3Q
                                         --------  --------  --------
 Income Statement  
 ----------------

 Interest income                         $ 85,708  $ 84,937  $ 87,661
 Interest income (TE)                      88,124    87,204    90,033
 Interest expense                          34,308    33,394    36,467
                                         --------  --------  --------
 Net interest income (TE)                  53,816    53,810    53,566
 Provision for (recovery of) loan
  losses                                    1,211     1,238     1,554
 Noninterest income excluding net
  storm-related gain/(loss) and
  securities transactions                  25,889    30,193    30,485
 Net storm-related gain/(loss)                 --        --        --
 Securities transactions gains/(losses)         6        34        34
 Noninterest expense                       49,140    51,857    55,196
                                         --------  --------  --------
 Income before income taxes                26,944    28,675    24,963
 Income tax expense                         7,715     8,352     7,224
                                         --------  --------  --------
 Net income                              $ 19,229  $ 20,323  $ 17,739
                                         ========  ========  ========
 Noninterest Income
  and Noninterest Expense
 ------------------------

 Service charges on deposit accounts     $  9,190  $ 10,471  $ 11,085
 Trust fees                                 3,693     4,124     3,892
 Debit card & merchant fees                 1,778     2,171     2,025
 Insurance fees                             4,369     5,033     4,256
 Investment & annuity fees                  1,978     2,018     2,253
 ATM fees                                   1,324     1,358     1,434
 Secondary mortgage market operations         911     1,116       935
 Other income                               2,646     3,902     4,605
                                         --------  --------  --------
 Noninterest income excluding net
  storm-related gain/(loss) and
  securities transactions                $ 25,889  $ 30,193  $ 30,485

 Net storm-related gain/(loss)                 --        --        --

 Securities transactions gains/(losses)         6        34        34
                                         --------  --------  --------
 Total noninterest income including
  storm-related gain/(loss) and
  securities transactions                $ 25,895  $ 30,227  $ 30,519
                                         ========  ========  ========

 Personnel expense                       $ 26,563  $ 24,837  $ 28,531
 Occupancy expense (net)                    4,073     4,469     4,731
 Equipment expense                          2,272     2,768     2,814
 Other operating expense                   15,809    19,399    18,708
 Amortization of intangibles                  423       384       412
                                         ========  ========  ========
 Total noninterest expense               $ 49,140  $ 51,857  $ 55,196
                                         ========  ========  ========


            

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