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
-------------------------------------------