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 ======== ======== ========