GULFPORT, Miss., April 22, 2008 (PRIME NEWSWIRE) -- Hancock Holding Company (Nasdaq:HBHC) today announced earnings for the quarter ended March 31, 2008. Hancock's first quarter 2008 earnings were $20.1 million, an increase of $0.8 million, or 4.30 percent, from the first quarter of 2007. Diluted earnings per share for the first quarter of 2008 were $0.63, an increase of $0.05 from the same quarter a year ago.
Hancock Holding Company Chief Executive Officer Carl J. Chaney stated, "Hancock continues to thrive in the current financial crisis through our foundations of strength and stability. The Company is proud to report very impressive financial results for the first quarter and is poised for continued growth in these difficult economic conditions. Our strong capital base and conservative underwriting philosophy stand in stark contrast to many others in the financial services industry."
Highlights and key operating items from Hancock's first quarter earnings are as follows:
* Net Income and Returns: Hancock's net income for the first quarter of 2008 was $20.1 million compared to $19.2 million for the same quarter a year ago, an increase of $0.8 million, or 4.3 percent, and an increase of $3.5 million, or 20.8 percent, over the prior quarter. Return on average assets for the quarter was 1.30 percent compared to 1.11 percent for 2007's fourth quarter. Return on average common equity was 14.13 percent compared to 11.69 percent for the prior quarter. * VISA Related: In the fourth quarter of 2007, Hancock recorded a $2.5 million pre-tax charge for liabilities related to VISA USA's anti-trust settlement with American Express and other pending VISA litigation (reflecting Hancock's share as a VISA member). In the first quarter of 2008, as part of VISA's initial public offering, VISA redeemed 37.5 percent of the shares held by Hancock, resulting in a $2.8 million pre-tax security gain to Hancock. In addition, VISA lowered its estimate of pending litigation settlements. Consequently, in the first quarter of 2008, the Company reversed $1.3 million of the $2.5 million litigation expense that was recorded in the fourth quarter. * Other Security Gains: During the first quarter, the Company transferred certain securities from Trading to Available for Sale because it intends to hold them for a longer period of time. The Company recognized a $3.2 million pre-tax gain in the income statement for the fair value adjustment on trading securities as of the transfer date. * Net Charge-offs and Non-performing Assets: Net charge-offs for the first quarter of 2008 were $2.9 million, or 0.32 percent of average loans, up $563 thousand from the $2.4 million, or 0.26 percent of average loans, reported for the fourth quarter of 2007. The majority of the increase in net charge-offs as compared to the fourth quarter was reflected in commercial real estate loans. Non- performing assets as a percent of total loans and foreclosed assets was 0.46 percent at March 31, 2008, compared to 0.43 percent at December 31, 2007. The Company did report a decrease in non-accrual loans of $84 thousand and additional ORE of $1.3 million as compared to the fourth quarter. Loans 90 days past due or greater (accruing) as a percent of period end loans decreased 3 basis points from December 31, 2007, to 0.09 percent at March 31, 2008. * Allowance for Loan Losses: Reflective of the Company's conservative management philosophy, Hancock recorded a provision for loan losses of $8.8 million in the first quarter, which, when combined with the quarter's net charge-offs of $2.9 million, resulted in a $5.9 million increase in the allowance for loan losses between December 31, 2007, and March 31, 2008. This increase was necessary to adjust the allowance to the level dictated by the Company's reserving methodologies and due to weakening within local markets. The Company's allowance for loan losses was $53.01 million at March 31, 2008, up $5.9 million from the $47.12 million reported at December 31, 2007. The ratio of the allowance for loan losses as a percent of period-end loans was 1.46 percent at March 31, 2008, as compared to the 1.31 percent reported at December 31, 2007. * Loans: For the quarter ended March 31, 2008, Hancock's average total loans were $3.64 billion, which represented an increase of $346.0 million, or 11 percent, from the quarter ended March 31, 2007. Period-end loans were up $42.5 million, or 1 percent, compared to December 31, 2007. Average total loans were up $65 million, or 7 percent annualized, from the fourth quarter of 2007. Of that increase, approximately $15 million of growth was in Mississippi, $32 million in Louisiana, $17 million in Alabama, and $1 million in Florida. * Deposits: Period-end deposits for the first quarter were $5.1 billion, up $220 million, or 4.5 percent, from March 31, 2007, and were up $134 million, or 2.7 percent, from December 31, 2007. Average deposits were up $105 million, or 8 percent annualized, from the fourth quarter of 2007. The increases in average deposits were in public funds (up $167 million) and interest-bearing transaction deposits (up $35.7 million). These increases were offset by decreases in time deposits (down $72.7 million) and non- interest bearing deposits (down $25.3 million). * Net Interest Income: Net interest income (te) for the first quarter decreased $0.9 million, or 2 percent, from the first quarter of 2007, and was down $1.0 million from the fourth quarter of 2007, or 8 percent annualized. The Company did experience a moderate level of margin contraction in the first quarter as the net interest margin (te) of 3.80 percent was 24 basis points narrower than the same quarter a year ago. Growth in average earning asset levels were strong compared to the same quarter a year ago with an increase of $227 million, or 4 percent, mostly reflected in higher average loans (up $346 million, or 11 percent). With short-term interest rates down 300 basis points from a year ago, the Company's loan yield fell 58 basis points, with the yield on average earning assets down 36 basis points. However, total funding costs were down only 13 basis points, as the severity of the recent rate cuts by the Federal Reserve were difficult to immediately be reflected in lower deposit rates. The first quarter net interest margin (te) also contracted 24 basis points as compared to the fourth quarter of 2007. Again, the positive impact of higher levels of average earning assets (up $248 million, or 5 percent) was offset by declines in the Company's loan and securities portfolio yields (down 41 and 20 basis points, respectively). Funding costs in the first quarter were down 21 basis points compared to the previous quarter. As the interest rate environment stabilizes, the Company's net interest margin should begin to widen and return to a more normalized level. * Non-interest income: Non-interest income, excluding securities transactions, for the first quarter was up $4.3 million, or 16 percent, compared to the same quarter a year ago but was down $1.2 million, or 3.7 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 $1.6 million, or 17 percent), investment and annuity fees (up $831 thousand, or 42 percent), trust revenue (up $482 thousand, or 13 percent), and ATM fees (up $311 thousand, or 23 percent). The decrease in non-interest income (excluding securities transactions) for the first quarter compared to the prior quarter was primarily due to decreases in insurance fees (down $1.2 million, or 22 percent), service charge income (down $392 thousand, or 4 percent), and debit card fees (down $105 thousand, or 4 percent). These decreases were slightly offset by increases in investment and annuity fees (up $311 thousand, or 12 percent), other income (up $174 thousand, or 5 percent), and ATM fees (up $65 thousand, or 4 percent). * Operating expense: Operating expenses for the first quarter were $0.4 million, or 1 percent, higher compared to the same quarter a year ago but were $8.7 million, or 15 percent percent, lower than the previous quarter. The increase from the same quarter a year ago was reflected in higher levels of occupancy expense (up $528 thousand) and equipment expense (up $637 thousand), somewhat reflective of the Company's ongoing rebuilding efforts in the wake of the storm of 2005 but also due to the recent facilities opened in expansion markets (Mobile, Pensacola, and New Orleans). The decrease in operating expense from last quarter was due to the Company's continued focus on expense control and a full quarter's impact of the reduction in personnel implemented in the fourth quarter of 2007. The significant drivers of the lower levels of operating expense were reflected in personnel expense (down $1.4 million due to the absence of severance charges that were recognized in the previous quarter), occupancy expense (down $1.6 million), and other operating expense (down $5.9 million, reflective of $2.5 million in VISA accruals in the fourth quarter and a $1.3 million Visa reversal in the first q quarter). Full-time equivalent headcount at March 31, 2008, was down 11 from December 31, 2007, and was down 52 compared to March 31, 2007.
Chief Executive Officer John M. Hairston stated, "The Company's first quarter results reflected enviable return levels, in part on the basis of the sustainable expense control measures put in place in the previous quarter. We are proud of the efforts of our associates and their contributions to these results."
The Company did not repurchase any shares during the first quarter of 2008 under the Stock Repurchase Plan that was approved in 2007. This plan authorizes the repurchase of 3,000,000 shares. Approximately 552,000 of the Company's shares were repurchased during the fourth quarter of 2007 and 1,556,000 shares in total for 2007. Subject to market conditions, repurchases will be conducted solely through a Rule 10b5-1 repurchase plan. Shares purchased under this program will be held in treasury and used for general corporate purposes as determined by Hancock's board of directors. Management intends to continue repurchasing shares as long as market conditions are conducive to that action.
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 $6.4 billion. Founded in 1899, Hancock Bank consistently ranks as one of the country's strongest, safest financial institutions, according to Veribanc, Inc., and BauerFinancial Services, Inc. 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 ------------------------------------ 3/31/2008 12/31/2007 3/31/2007 ------------------------------------ Per Common Share Data --------------------- Earnings per share: Basic $0.64 $0.53 $0.59 Diluted $0.63 $0.53 $0.58 Cash dividends per share $0.240 $0.240 $0.240 Book value per share (period-end) $18.41 $17.71 $17.27 Tangible book value per share (period-end) $16.17 $15.45 $15.05 Weighted average number of shares: Basic 31,346 31,097 32,665 Diluted 31,790 31,577 33,299 Period-end number of shares 31,372 31,295 32,518 Market data: High closing price $44.29 $43.47 $54.09 Low closing price $33.45 $33.35 $41.88 Period end closing price $42.02 $38.20 $43.98 Trading volume 17,204 17,662 8,577 Other Period-end Data --------------------- FTE headcount 1,877 1,888 1,929 Tangible common equity $507,287 $483,612 $489,430 Tier I capital $512,248 $497,307 $513,229 Goodwill $62,277 $62,277 $62,277 Amortizable intangibles $7,388 $7,753 $8,991 Mortgage servicing intangibles $477 $545 $829 Common shares repurchased for publicly announced plans 0 552 228 Performance Ratios ------------------ Return on average assets 1.30% 1.11% 1.32% Return on average common equity 14.13% 11.69% 13.77% Earning asset yield (TE) 6.28% 6.72% 6.64% Total cost of funds 2.47% 2.68% 2.60% Net interest margin (TE) 3.80% 4.04% 4.04% Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions 59.49% 67.98% 61.40% Common equity (period-end) as a percent of total assets (period-end) 8.99% 9.15% 9.61% Leverage (Tier I) ratio 8.34% 8.49% 8.80% Tangible common equity ratio 7.98% 8.08% 8.48% Net charge-offs as a percent of average loans 0.32% 0.26% 0.18% Allowance for loan losses as a percent of period-end loans 1.46% 1.31% 1.41% Allowance for loan losses to NPAs + accruing loans 90 days past due 265.81% 241.43% 413.60% Loan/deposit ratio 72.10% 72.33% 65.91% Non-interest income excluding securities transactions as a percent of total revenue (TE) 36.73% 37.15% 32.96% ------------------------------------ Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) ------------------------------------ Three Months Ended ------------------------------------ 3/31/2008 12/31/2007 3/31/2007 ------------------------------------ Asset Quality Information ------------------------- Non-accrual loans $12,983 $13,067 $4,494 Foreclosed assets 3,619 2,297 718 ------------------------------------ Total non-performing assets $16,602 $15,364 $5,212 ------------------------------------ Non-performing assets as a percent of loans and foreclosed assets 0.46% 0.43% 0.16% Accruing loans 90 days past due $3,340 $4,154 $6,035 Accruing loans 90 days past due as a percent of loans 0.09% 0.12% 0.18% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 0.55% 0.54% 0.34% Net charge-offs $2,933 $2,370 $1,466 Net charge-offs as a percent of average loans 0.32% 0.26% 0.18% Allowance for loan losses $53,008 $47,123 $46,517 Allowance for loan losses as a percent of period-end loans 1.46% 1.31% 1.41% Allowance for loan losses to NPAs + accruing loans 90 days past due 265.81% 241.43% 413.60% Provision for loan losses $8,818 $3,592 1,211 Allowance for Loan Losses ------------------------- Beginning Balance $47,123 $45,901 $46,772 Provision for loan loss 8,818 3,592 1,211 Charge-offs 4,197 4,245 3,076 Recoveries 1,264 1,875 1,610 ------------------------------------ Net charge-offs 2,933 2,370 1,466 ------------------------------------ Ending Balance $53,008 $47,123 $46,517 ------------------------------------ Net Charge-off Information -------------------------- Net charge-offs: Commercial/real estate loans $834 ($100) $168 Mortgage loans -- 42 23 Direct consumer loans 588 886 110 Indirect consumer loans 463 518 675 Finance company loans 1,048 1,024 489 ------------------------------------ Total net charge-offs $2,933 $2,370 $1,465 ==================================== Average loans: Commercial/real estate loans $2,180,322 $2,128,279 $1,931,966 Mortgage loans 443,747 440,842 426,103 Direct consumer loans 514,441 505,098 485,201 Indirect consumer loans 386,985 385,093 357,008 Finance Company loans 113,113 114,750 92,315 ------------------------------------ Total average loans $3,638,608 $3,574,062 $3,292,593 Net charge-offs to average loans: Commercial/real estate loans 0.15% -0.02% 0.04% Mortgage loans 0.00% 0.04% 0.02% Direct consumer loans 0.46% 0.70% 0.09% Indirect consumer loans 0.48% 0.53% 0.77% Finance Company loans 3.73% 3.54% 2.15% ------------------------------------ Total net charge-offs to average loans 0.32% 0.26% 0.18% ------------------------------------ Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) ------------------------------------ Three Months Ended ------------------------------------ 3/31/2008 12/31/2007 3/31/2007 ------------------------------------ Income Statement ---------------- Interest income $84,813 $87,559 $85,708 Interest income (TE) 87,269 90,041 88,124 Interest expense 34,344 36,067 34,308 ------------------------------------ Net interest income (TE) 52,925 53,974 53,816 Provision for loan losses 8,818 $3,592 1,211 Noninterest income excluding securities transactions 30,728 31,897 26,457 Securities transactions gains/(losses) 5,652 234 6 Noninterest expense 50,134 58,804 49,708 ------------------------------------ Income before income taxes 27,897 21,227 26,944 Income tax expense 7,840 4,627 7,715 ------------------------------------ Net income 20,057 16,600 19,229 ==================================== Noninterest Income and Noninterest Expense ---------------------- Service charges on deposit accounts $10,790 $11,182 $9,190 Trust fees 4,175 4,194 3,693 Debit card & merchant fees 2,540 2,645 2,291 Insurance fees 4,341 5,561 4,369 Investment & annuity fees 2,809 2,498 1,978 ATM fees 1,691 1,626 1,380 Secondary mortgage market operations 778 761 911 Other income 3,604 3,430 2,645 ------------------------------------ Noninterest income excluding securities transactions $30,728 $31,897 $26,457 Securities transactions gains/(losses) 5,652 234 6 ------------------------------------ Total noninterest income including securities transactions $36,380 $32,131 $26,463 ==================================== Personnel expense $25,631 $27,027 $26,563 Occupancy expense (net) 4,601 6,162 4,073 Equipment expense 2,909 2,610 2,272 Other operating expense 16,628 22,573 16,377 Amortization of intangibles 365 432 423 ------------------------------------ Total noninterest expense $50,134 $58,804 $49,708 ==================================== Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) ------------------------------------ Three Months Ended ------------------------------------ 3/31/2008 12/31/2007 3/31/2007 ------------------------------------ Period-end Balance Sheet ------------------------ Commercial/real estate loans $2,198,443 $2,155,672 $1,953,906 Mortgage loans 435,825 434,314 420,781 Direct consumer loans 506,372 505,110 469,782 Indirect consumer loans 386,614 386,241 358,844 Finance Company loans 111,806 115,220 95,334 ------------------------------------ Total loans 3,639,060 3,596,557 3,298,647 Loans held for sale 22,752 18,957 21,342 Securities 1,765,416 1,677,621 1,820,772 Short-term investments 366,809 126,281 134,924 ------------------------------------ Earning assets 5,794,037 5,419,416 5,275,685 ------------------------------------ Allowance for loan losses (53,008) (47,123) (46,517) Other assets 684,084 683,686 615,946 ------------------------------------ Total assets 6,425,113 6,055,979 5,845,114 ==================================== Noninterest bearing deposits $881,380 $907,874 $995,920 Interest bearing transaction deposits 1,431,726 1,343,173 1,515,116 Interest bearing Public Fund deposits 1,038,119 845,685 777,692 Time deposits 1,792,360 1,912,802 1,635,091 ------------------------------------ Total interest bearing deposits 4,262,205 4,101,660 3,927,899 ------------------------------------ Total deposits 5,143,585 5,009,534 4,923,819 Other borrowed funds 604,013 386,263 222,534 Other liabilities 100,087 105,995 137,153 Common shareholders' equity 577,428 554,187 561,608 ------------------------------------ Total liabilities & common equity 6,425,113 6,055,979 5,845,114 ==================================== Average Balance Sheet --------------------- Commercial/real estate loans $2,180,322 $2,128,279 $1,931,966 Mortgage loans 443,747 440,842 426,103 Direct consumer loans 514,441 505,098 485,201 Indirect consumer loans 386,985 385,093 357,008 Finance Company loans 113,113 114,750 92,315 ------------------------------------ Total loans 3,638,608 3,574,062 3,292,593 Securities 1,743,207 1,707,585 1,830,557 Short-term investments 199,484 51,384 231,559 ------------------------------------ Earning average assets 5,581,299 5,333,031 5,354,709 ------------------------------------ Allowance for loan losses (47,385) (46,347) (46,704) Other assets 678,215 643,430 597,948 ------------------------------------ Total assets 6,212,129 5,930,114 5,905,953 ==================================== Noninterest bearing deposits $858,706 $884,019 $983,984 Interest bearing transaction deposits 1,376,712 1,341,013 1,492,404 Interest bearing Public Fund deposits 962,170 795,024 820,652 Time deposits 1,848,825 1,921,490 1,698,218 ------------------------------------ Total interest bearing deposits 4,187,707 4,057,527 4,011,274 ------------------------------------ Total deposits 5,046,413 4,941,546 4,995,258 Other borrowed funds 484,542 302,150 205,737 Other liabilities 110,468 123,191 138,764 Common shareholders' equity 570,706 563,227 566,194 ------------------------------------ Total liabilities & common equity 6,212,129 5,930,114 5,905,953 ==================================== Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) ------------------------------------ Three Months Ended ------------------------------------ 3/31/2008 12/31/2007 3/31/2007 ------------------------------------ Average Balance Sheet Mix ------------------------- Percentage of earning assets/funding sources: Loans 65.20% 67.02% 61.49% Securities 31.23% 32.02% 34.19% Short-term investments 3.57% 0.96% 4.32% ------------------------------------ Earning average assets 100.00% 100.00% 100.00% ==================================== Noninterest bearing deposits 15.39% 16.57% 18.38% Interest bearing transaction deposits 24.67% 25.15% 27.87% Interest bearing Public Fund deposits 17.24% 14.91% 15.33% Time deposits 33.12% 36.03% 31.71% ------------------------------------ Total deposits 90.42% 92.66% 93.29% Other borrowed funds 8.68% 5.66% 3.84% Other net interest-free funding sources 0.90% 1.68% 2.87% ------------------------------------ Total average funding sources 100.00% 100.00% 100.00% ==================================== Loan mix: Commercial/real estate loans 59.91% 59.56% 58.68% Mortgage loans 12.20% 12.33% 12.94% Direct consumer loans 14.14% 14.13% 14.74% Indirect consumer loans 10.64% 10.77% 10.84% Finance Company loans 3.11% 3.21% 2.80% ------------------------------------ Total loans 100.00% 100.00% 100.00% ==================================== Average dollars (in thousands): Loans $3,638,608 $3,574,062 $3,292,593 Securities 1,743,207 1,707,585 1,830,557 Short-term investments 199,484 51,384 231,559 ------------------------------------ Earning average assets $5,581,299 $5,333,031 $5,354,709 Noninterest bearing deposits $858,706 $884,019 $983,984 Interest bearing transaction deposits 1,376,712 1,341,013 1,492,404 Interest bearing Public Fund deposits 962,170 795,024 820,652 Time deposits 1,848,825 1,921,490 1,698,218 ------------------------------------ Total deposits 5,046,413 4,941,546 4,995,258 Other borrowed funds 484,542 302,150 205,737 Other net interest-free funding sources 50,345 89,335 153,714 ------------------------------------ Total average funding sources 5,581,300 5,333,031 5,354,709 Loans: Commercial/real estate loans $2,180,322 $2,128,279 $1,931,966 Mortgage loans 443,747 440,842 426,103 Direct consumer loans 514,441 505,098 485,201 Indirect consumer loans 386,985 385,093 357,008 Finance Company loans 113,113 114,750 92,315 ------------------------------------ Total average loans $3,638,608 $3,574,062 $3,292,593 ------------------------------------ Hancock Holding Company Average Balance and Net Interest Margin Summary (amounts in thousands) (unaudited) ------------------------------------------------------ Three Months Ended ------------------------------------------------------ 03/31/08 12/31/07 ------------------------------------------------------ Interest Volume Rate Interest Volume Rate -------- ---------- ----- -------- ---------- ----- Average Earning Assets Commercial & real estate loans (TE) $35,833 $2,180,322 6.61% $38,518 $2,128,279 7.19% Mortgage loans 6,710 443,747 6.05% 6,807 440,842 6.18% Consumer loans 21,540 1,014,539 8.54% 21,875 1,004,941 8.64% Loan fees & late charges 116 -- 0.00% 273 -- 0.00% -------- ---------- ----- -------- ---------- ----- Total loans (TE) $64,199 $3,638,608 7.09% 67,473 $3,574,062 7.50% U.S. treasury securities 117 11,384 4.12% 101 11,326 3.53% U.S. agency securities 5,638 477,630 4.72% 8,147 635,796 5.13% CMOs 1,728 143,691 4.81% 1,116 97,074 4.60% Mortgage backed securities 11,025 856,452 5.15% 9,302 709,421 5.24% Municipals (TE) 2,501 193,787 5.16% 2,631 196,421 5.36% Other securities 600 60,263 3.98% 718 57,547 5.00% -------- ---------- ----- -------- ---------- ----- Total securities (TE) 21,609 1,743,207 4.96% 22,015 1,707,585 5.16% Total short- term investments 1,462 199,484 2.95% 553 51,384 4.27% Average earning assets yield (TE) $87,270 $5,581,299 6.28% $90,041 $5,333,031 6.72% Interest-bearing Liabilities Interest-bearing transaction deposits $3,952 $1,376,712 1.15% $3,774 $1,341,013 1.12% Time deposits 20,455 1,848,825 4.45% 22,353 1,921,490 4.62% Public Funds 6,192 962,170 2.59% 7,340 795,024 3.66% ------------------------------------------------------ Total interest bearing deposits $30,599 4,187,707 2.94% $33,467 4,057,527 3.27% Total borrowings 3,791 484,542 3.15% 2,722 302,150 3.57% Capitalized Interest (46) (122) Total interest bearing liab cost $34,344 $4,672,249 2.96% $36,067 $4,359,677 3.28% Noninterest- bearing deposits 858,706 884,019 Other net interest-free funding sources 50,345 89,335 Total Cost of Funds $34,344 $5,581,300 2.47% $36,067 $5,333,031 2.68% Net Interest Spread (TE) $52,926 3.32% $53,974 3.44% Net Interest Margin (TE) $52,926 $5,581,300 3.80% $53,974 $5,333,031 4.04% ------------------------------------------------------ Three Months Ended --------------------------- 03/31/07 --------------------------- Interest Volume Rate -------- ---------- ------ Average Earning Assets Commercial & real estate loans (TE) $35,231 $1,931,966 7.39% Mortgage loans 6,509 426,103 6.11% Consumer loans 20,197 934,524 8.76% Loan fees & late charges 443 -- 0.00% -------- ---------- ------ Total loans (TE) $62,380 3,292,593 7.67% U.S. treasury securities 736 60,480 4.94% U.S. agency securities 11,755 940,516 5.00% CMOs 1,104 107,986 4.09% Mortgage backed securities 5,482 444,427 4.93% Municipals (TE) 2,861 198,815 5.76% Other securities 922 78,333 4.71% -------- ---------- ------ Total securities (TE) 22,860 1,830,557 5.00% Total short-term investments 2,883 231,559 5.05% Average earning assets yield (TE) $88,123 $5,354,709 6.64% Interest-bearing Liabilities Interest-bearing transaction deposits $4,765 $1,492,404 1.29% Time deposits 19,022 1,698,218 4.54% Public Funds 9,029 820,652 4.46% --------------------------- Total interest bearing deposits $32,816 4,011,274 3.32% Total borrowings 1,882 205,737 3.68% Capitalized Interest (390) Total interest bearing liab cost $34,308 $4,217,011 3.30% Noninterest-bearing deposits 983,984 Other net interest-free funding sources 153,714 Total Cost of Funds $34,308 $5,354,709 2.60% Net Interest Spread (TE) $53,815 3.34% Net Interest Margin (TE) $53,815 $5,354,709 4.04% --------------------------- Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) (unaudited) ------------------------------ 2006 ------------------------------- 2Q 3Q 4Q ------------------------------- Per Common Share Data --------------------- Earnings per share: Basic $0.68 $1.11 $0.67 Diluted $0.66 $1.08 $0.65 Cash dividends per share $0.220 $0.240 $0.240 Book value per share (period-end) $15.12 $16.64 $17.09 Tangible book value per share (period-end) $12.94 $14.47 $14.87 Weighted average number of shares: Basic 32,531 32,566 32,632 Diluted 33,322 33,333 33,378 Period-end number of shares 32,555 32,584 32,666 Market data: High closing price $57.19 $56.79 $56.00 Low closing price $44.02 $49.71 $50.85 Period end closing price $56.00 $53.55 $52.84 Trading volume 8,737 8,135 6,393 Other Period-end Data --------------------- FTE headcount 1,777 1,788 1,848 Tangible common equity $421,369 $471,387 $485,778 Tier I capital $457,738 $487,668 $510,638 Goodwill $59,060 $59,708 $62,277 Amortizable intangibles $10,575 $9,913 $9,414 Mortgage servicing intangibles $1,256 $1,093 $941 Common shares repurchased for publicly announced plans 22 -- -- Performance Ratios ------------------ Return on average assets 1.45% 2.36% 1.44% Return on average common equity 17.89% 27.58% 15.54% Earning asset yield (TE) 6.32% 6.60% 6.54% Total cost of funds 2.05% 2.30% 2.48% Net interest margin (TE) 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 59.13% 58.76% 59.79% Common equity (period-end) as a percent of total assets (period-end) 8.00% 8.86% 9.36% Leverage (Tier I) ratio 7.59% 8.15% 8.63% Tangible common equity ratio 6.92% 7.79% 8.24% Net charge-offs as a percent of average loans 0.40% 0.34% 0.19% Allowance for loan losses as a percent of period-end loans 2.35% 1.55% 1.43% Allowance for loan losses to NPAs + loans 90 days past due 457.10% 494.65% 694.67% Loan/deposit ratio 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) 30.28% 30.18% 33.14% ------------------------------- ------------------------------------------------- 2007 2008 ------------------------------------------------- 1Q 2Q 3Q 4Q 1Q ------------------------------------------------- Per Common Share Data --------------------- Earnings per share: Basic $0.59 $0.63 $0.55 $0.53 $0.64 Diluted $0.58 $0.62 $0.55 $0.53 $0.63 Cash dividends per share $0.240 $0.240 $0.240 $0.240 $0.240 Book value per share (period-end) $17.27 $17.13 $17.55 $17.71 $18.41 Tangible book value per share (period-end) $15.05 $14.90 $15.32 $15.45 $16.17 Weighted average number of shares: Basic 32,665 32,233 32,005 31,097 31,346 Diluted 33,299 32,749 32,492 31,577 31,790 Period-end number of shares 32,518 32,094 31,786 31,295 31,372 Market data: High closing price $54.09 $44.37 $43.90 $43.47 $44.29 Low closing price $41.88 $37.50 $32.78 $33.35 $33.45 Period end closing price $43.98 $37.55 $40.08 $38.20 $42.02 Trading volume 8,577 11,614 10,290 17,662 17,204 Other Period-end Data --------------------- FTE headcount 1,929 1,944 1,966 1,888 1,877 Tangible common equity $489,430 $478,085 $486,871 $483,612 $507,287 Tier I capital $513,229 $510,096 $508,554 $497,307 $512,248 Goodwill $62,277 $62,277 $62,277 $62,277 $62,277 Amortizable intangibles $8,991 $8,607 $8,195 $7,753 $7,388 Mortgage servicing intangibles $829 $729 $632 $545 $477 Common shares repurchased for publicly announced plans 228 433 343 552 -- Performance Ratios ------------------ Return on average assets 1.32% 1.42% 1.21% 1.11% 1.30% Return on average common equity 13.77% 14.53% 12.58% 11.69% 14.13% Earning asset yield (TE) 6.64% 6.76% 6.81% 6.72% 6.28% Total cost of funds 2.60% 2.59% 2.75% 2.68% 2.47% Net interest margin (TE) 4.04% 4.17% 4.06% 4.04% 3.80% 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% 67.74% 59.49% Common equity (period-end) as a percent of total assets (period-end) 9.61% 9.36% 9.45% 9.15% 8.99% Leverage (Tier I) ratio 8.80% 9.01% 8.82% 8.49% 8.34% Tangible common equity ratio 8.48% 8.24% 8.34% 8.08% 7.98% Net charge-offs as a percent of average loans 0.18% 0.18% 0.21% 0.26% 0.32% Allowance for loan losses as a percent of period-end loans 1.41% 1.35% 1.31% 1.31% 1.46% Allowance for loan losses to NPAs + loans 90 days past due 413.60% 410.98% 335.22% 241.43% 265.81% Loan/deposit ratio 65.91% 69.62% 70.28% 72.33% 72.10% 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) 32.96% 32.48% 36.27% 36.67% 36.73% ------------------------------------------------- Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) (unaudited) ----------------------------------- 2006 ----------------------------------- 2Q 3Q 4Q ----------------------------------- Asset Quality Information ------------------------- Non-accrual loans $7,237 $5,179 $3,500 Foreclosed assets 1,606 970 681 ----------------------------------- Total non-performing assets $8,843 $6,149 $4,181 Non-performing assets as a percent of loans and foreclosed assets 0.29% 0.20% 0.13% Accruing loans 90 days past due $6,681 $3,626 $2,552 Accruing loans 90 days past due as a percent of loans 0.22% 0.12% 0.08% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 0.51% 0.31% 0.21% Net charge-offs $3,001 $2,608 $1,523 Net charge-offs as a percent of average loans 0.40% 0.34% 0.19% Allowance for loan losses $70,960 $48,352 $46,772 Allowance for loan losses as a percent of period-end loans 2.35% 1.55% 1.43% Allowance for loan losses to NPAs + accruing loans 90 days past due 457.10% 494.65% 694.67% Provision for (recovery of) loan losses -- ($20,000) ($57) Net Charge-off Information -------------------------- Net charge-offs: Commercial/real estate loans $620 $522 ($137) Mortgage loans 28 367 (11) Direct consumer loans 1,681 1,003 493 Indirect consumer loans 391 294 395 Finance company loans 281 422 783 ----------------------------------- Total net charge-offs $3,001 $2,608 $1,523 ----------------------------------- Average loans: Commercial/real estate loans $1,699,768 $1,759,173 $1,855,506 Mortgage loans 410,522 423,610 428,674 Direct consumer loans 463,977 470,771 479,087 Indirect consumer loans 348,463 347,404 350,829 Finance Company loans 71,461 79,483 86,965 ----------------------------------- Total average loans $2,994,191 $3,080,441 $3,201,061 Net charge-offs to average loans: Commercial/real estate loans 0.15% 0.12% -0.03% Mortgage loans 0.03% 0.34% -0.01% Direct consumer loans 1.45% 0.85% 0.41% Indirect consumer loans 0.45% 0.34% 0.45% Finance Company loans 1.58% 2.11% 3.57% ----------------------------------- Total net charge-offs to average loans 0.40% 0.34% 0.19% ----------------------------------- ----------------------------------------------------------- 2007 2008 ----------------------------------------------------------- 1Q 2Q 3Q 4Q 1Q ----------------------------------------------------------- Asset Quality Information ------------ Non-accrual loans $4,494 $7,544 $8,500 $13,067 $12,983 Foreclosed assets 718 1,146 1,374 2,297 3,619 ----------------------------------------------------------- Total non- performing assets $5,212 $8,690 $9,874 $15,364 $16,602 Non- performing assets as a percent of loans and foreclosed assets 0.16% 0.25% 0.28% 0.43% 0.46% Accruing loans 90 days past due $6,035 $2,558 $3,819 $4,154 $3,340 Accruing loans 90 days past due as a percent of loans 0.18% 0.07% 0.11% 0.12% 0.09% Non- performing assets + accruing loans 90 days past due to loans and foreclosed assets 0.34% 0.33% 0.39% 0.54% 0.55% Net charge- offs $1,466 $1,528 $1,880 $2,370 $2,933 Net charge- offs as a percent of average loans 0.18% 0.18% 0.21% 0.26% 0.32% Allowance for loan losses $46,517 $46,227 $45,901 $47,123 $53,008 Allowance for loan losses as a percent of period- end loans 1.41% 1.35% 1.31% 1.31% 1.46% Allowance for loan losses to NPAs + accruing loans 90 days past due 413.60% 410.98% 335.22% 241.43% 265.81% Provision for (recovery of) loan losses $1,211 $1,238 $1,554 $3,592 $8,818 Net Charge- off Information ------------ Net charge- offs: Commercial/ real estate loans $168 ($63) ($58) ($100) $834 Mortgage loans 23 (22) -- 42 -- Direct consumer loans 110 617 $864 886 588 Indirect consumer loans 675 471 $314 518 463 Finance company loans 489 525 $760 1,024 1,048 ----------------------------------------------------------- Total net charge- offs $1,465 $1,528 $1,880 $2,370 $2,933 ----------------------------------------------------------- Average loans: Commercial/ real estate loans $1,931,966 $1,989,420 $2,055,922 $2,128,279 $2,180,322 Mortgage loans 426,103 433,310 439,459 440,842 443,747 Direct consumer loans 485,201 487,267 491,417 505,098 514,441 Indirect consumer loans 357,008 360,451 373,677 385,093 386,985 Finance Company loans 92,315 101,092 109,807 114,750 113,113 ----------------------------------------------------------- Total average loans $3,292,593 $3,371,540 $3,470,282 $3,574,062 $3,638,608 Net charge- offs to average loans: Commercial/ real estate loans 0.04% -0.01% -0.01% -0.02% 0.15% Mortgage loans 0.02% -0.02% 0.00% 0.04% 0.00% Direct consumer loans 0.09% 0.51% 0.70% 0.70% 0.46% Indirect consumer loans 0.77% 0.52% 0.33% 0.53% 0.48% Finance Company loans 2.15% 2.08% 2.74% 3.54% 3.73% ----------------------------------------------------------- Total net charge- offs to average loans 0.18% 0.18% 0.21% 0.26% 0.32% ----------------------------------------------------------- Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) (unaudited) -------------------------- 2006 -------------------------- 2Q 3Q 4Q -------------------------- Income Statement ---------------- Interest income $86,403 $89,233 $87,104 Interest income (TE) 88,382 91,275 89,366 Interest expense 28,636 31,988 33,966 -------------------------- Net interest income (TE) 59,746 59,287 55,400 Provision for (recovery of) loan losses -- (20,000) (57) Noninterest income excluding net storm-related gain/(loss) and securities transactions 25,942 25,627 27,459 Net storm-related gain/(loss) -- -- 5,084 Securities transactions gains/(losses) -- 110 (5,396) Noninterest expense 51,172 50,337 50,042 -------------------------- Income before income taxes 32,537 52,645 30,300 Income tax expense 10,539 16,614 8,538 -------------------------- Net income $21,998 $36,031 21,762 ========================== Noninterest Income and Noninterest Expense ------------------------------------------ Service charges on deposit accounts $9,223 $9,719 $9,402 Trust fees 3,409 3,174 3,624 Debit card & merchant fees 1,863 1,744 1,983 Insurance fees 4,596 4,145 5,346 Investment & annuity fees 1,591 1,595 1,519 ATM fees 1,273 1,223 1,215 Secondary mortgage market operations 749 1,018 945 Other income 3,238 3,009 3,425 -------------------------- Noninterest income excluding net storm-related gain/(loss) and securities transactions $25,942 $25,627 $27,459 Net storm-related gain/(loss) -- -- 5,084 Securities transactions gains/(losses) -- 110 (5,396) -------------------------- Total noninterest income including storm-related gain/(loss) and securities transactions $25,942 $25,737 $27,147 ========================== Personnel expense $26,400 $27,059 $24,092 Occupancy expense (net) 3,474 2,882 3,335 Equipment expense 2,816 2,647 2,665 Other operating expense 17,975 17,304 19,451 Amortization of intangibles 507 445 499 -------------------------- Total noninterest expense $51,172 $50,337 $50,042 -------------------------- ------------------------------------------- 2007 2008 ------------------------------------------- 1Q 2Q 3Q 4Q 1Q ------------------------------------------- Income Statement ---------------- Interest income $85,708 $84,937 $87,661 $87,559 $84,813 Interest income (TE) 88,124 87,204 90,033 90,041 87,269 Interest expense 34,308 33,394 36,467 36,067 34,344 ------------------------------------------- Net interest income (TE) 53,816 53,810 53,566 53,974 52,925 Provision for (recovery of) loan losses 1,211 1,238 1,554 3,592 8,818 Noninterest income excluding net storm- related gain/(loss) and securities transactions 26,457 30,193 30,485 31,897 30,728 Net storm-related gain/ (loss) -- -- -- -- -- Securities transactions gains/(losses) 6 34 34 234 5,652 Noninterest expense 49,708 51,857 55,196 58,804 50,134 ------------------------------------------- Income before income taxes 26,944 28,675 24,963 21,227 27,897 Income tax expense 7,715 8,352 7,224 4,627 7,840 ------------------------------------------- Net income 19,229 20,323 17,739 16,600 20,057 =========================================== Noninterest Income and ---------------------- Noninterest Expense ------------------- Service charges on deposit accounts $9,190 $10,471 $11,085 $11,182 $10,790 Trust fees 3,693 4,124 3,892 4,194 4,175 Debit card & merchant fees 2,291 2,171 2,025 2,645 2,540 Insurance fees 4,369 5,033 4,256 5,561 4,341 Investment & annuity fees 1,978 2,018 2,253 2,498 2,809 ATM fees 1,380 1,358 1,434 1,626 1,691 Secondary mortgage market operations 911 1,116 935 761 778 Other income 2,645 3,902 4,605 3,430 3,604 ------------------------------------------- Noninterest income excluding net storm- related gain/(loss) and securities transactions $26,457 $30,193 $30,485 $31,897 $30,728 Net storm-related gain/ (loss) -- -- -- -- -- Securities transactions gains/(losses) 6 34 34 234 5,652 ------------------------------------------- Total noninterest income including storm-related gain/(loss) and securities transactions $26,463 $30,227 $30,519 $32,131 $36,380 =========================================== Personnel expense $26,563 $24,837 $28,531 $27,027 $25,631 Occupancy expense (net) 4,073 4,469 4,731 6,162 4,601 Equipment expense 2,272 2,768 2,814 2,610 2,909 Other operating expense 16,377 19,399 18,708 22,573 16,628 Amortization of intangibles 423 384 412 432 365 ------------------------------------------- Total noninterest expense $49,708 $51,857 $55,196 $58,804 $50,134 -------------------------------------------