GULFPORT, Miss., Jan. 20, 2009 (GLOBE NEWSWIRE) -- Hancock Holding Company (Nasdaq:HBHC) today announced net income for the year ended December 31, 2008. Hancock's 2008 net income was $65.4 million, a decrease of $8.5 million, or 11.5 percent, from 2007's net income of $73.9 million. Diluted earnings per share for 2008 were $2.05, a decrease of $0.22 from 2007's diluted earnings per share of $2.27. Hancock's return on average assets for 2008 was 1.02 percent compared to 1.26 percent for 2007.
Net income for the fourth quarter of 2008 was $8.3 million, a decrease of $8.3 million, or 49.9 percent, from the fourth quarter of 2007, and a decrease of $7.7 million, or 48.0 percent, from 2008's third quarter. Diluted earnings per share for 2008's fourth quarter were $0.26, compared to $0.53 per diluted share for the same quarter a year ago and to $0.50 per diluted share for 2008's third quarter.
The Company's fourth quarter results were heavily impacted by the continuing financial crisis and on-going national economic recession. In addition, weaknesses in residential development and rising unemployment levels in the Company's market areas also impacted fourth quarter earnings. As a result of these difficult national and regional issues, Hancock recorded a fourth quarter provision for loan losses of $17.1 million, which represents an increase of $9.1 million compared to the prior quarter. Net charge-offs for the quarter were $12.6 million, or 1.20 percent of average loans and were up $8.4 million compared to the third quarter. Of the $8.4 million increase in net charge-offs, over 70.0 percent or about $5.9 million, were reflected in the Company's construction and land development loan segments. These weakening economic conditions also impacted the Company's allowance for loan losses, which increased to 1.45 percent of period-end loans at December 31, 2008, from the 1.40 percent recorded at September 30, 2008. The quarter's higher level of provision for loan losses impacted diluted earnings per share by $0.18.
Commenting on the Company's fourth quarter earnings, Hancock Holding Company President and Chief Executive Officer Carl J. Chaney stated, "While disappointed by the necessary action to record a higher provision for loan losses this quarter, we are pleased with the continued growth and strength of Hancock's balance sheet. At year end, Hancock's total asset level reached $7.2 billion, with deposits growing nearly $516 million during the quarter as many customers continued to seek a safe and secure bank for their money. In addition, our capital levels -- among the highest in our peer groups and without the aid of government bailout money as Hancock elected to pass on this assistance -- reached $609.5 million. The actions taken with respect to proactively recognizing weaknesses in some segments of our loan portfolio remain consistent with the conservative and careful nature in which Hancock is managed."
Highlights & Key Operating Items from Hancock's Fourth Quarter Results
Balance Sheet Growth & Capital
Hancock continued to experience extraordinary asset growth as total assets at December 31, 2008, grew to $7.2 billion from $6.7 billion at September 30, 2008. The increase was even more dramatic compared to December 31, 2007, as total assets grew by over $1.1 billion, or 18.4 percent. All of the aforementioned growth in assets was organic as the Company did not record any acquisitions in the past year. Hancock also remains very well capitalized with total equity of $609.5 million at December 31, 2008, up $55.3 million, or 10.0 percent, from December 31, 2007. Hancock's tangible equity ratio at year end was 7.62 percent, still among the highest in Hancock's peer group and without the aid of government assistance.
Loan Growth
For the quarter ended December 31, 2008, Hancock's average total loans were $4.2 billion, which represented an increase of $613.4 million, or 17.2 percent, from 2007's fourth quarter and was up $234.2 million, or 5.9 percent from the third quarter of 2008. Period-end loans were up $176.5 million, or 4.3 percent, from last quarter. The majority of the period-end increase in loans was in municipal loans (up $71.5 million, or 17.4 percent), with smaller increases recorded in most other commercial and consumer loan categories. Of the $234.2 million increase in average loans, approximately $97.3 million was in Mississippi, $86.3 million in Louisiana, and $26.6 million and $24.0 million in Alabama and Florida, respectively.
Deposit Growth
Average deposits were up $510.8 million, or 10.0 percent, from the third quarter of 2008. The increase in average deposits was reflected mostly in time deposits (up $311.0 million) and public fund deposits (up $151.1 million). Period-end deposits for the fourth quarter were $5.9 billion, up $921.4 million, or 18.4 percent, from December 31, 2007, and were up $516.1 million, or 9.5 percent, from September 30, 2008. The large increase in period-end deposits as compared to September 30, 2008, was primarily in time deposits as well as public fund deposits.
Asset Quality
Effects of the on-going national recession, weakness in residential development and higher unemployment levels across all of Hancock's markets had a significant impact on the Company's net charge-off levels in the quarter and resulted in a higher allowance for loan losses. Net charge-offs for 2008's fourth quarter were $12.6 million, or 1.20 percent of average loans, up $8.4 million from the $4.2 million, or 0.42 percent of average loans, reported for the third quarter of 2008. Of the overall increase of $8.4 million, commercial charge-offs accounted for $7.4 million, while consumer charge-offs were up $0.86 million. The commercial charge-offs were mostly related to valuations and other issues in the construction and land development segments of the loan portfolio (approximately 14 credits and $5.9 million of charge-offs). The construction and land development loan segment represents approximately 13.7 percent of Hancock's total loan portfolio, or about $585.4 million at year end 2008. The increased levels of net charge-offs in Hancock's consumer loan segments were primarily reflected in indirect auto loans (up $424.0 thousand), direct consumer loans (up $330.0 thousand) and consumer finance (up $119.0 thousand). Indirect auto loans represent 10.4 percent of total loans at year-end, while direct consumer and finance company loans represent 13.7 percent and 2.8 percent, respectively. Non-performing assets as a percent of total loans and foreclosed assets was 0.83 percent at December 31, 2008, compared to 0.59 percent at September 30, 2008. Non-accrual loans increased $8.1 million while other real estate owned (ORE) increased $3.2 million compared to the third quarter. The increases in non-accrual loans and ORE were related to two separate real estate development projects in Louisiana. Loans 90 days past due or greater (accruing) as a percent of period end loans increased 11 basis points from September 30, 2008, to 0.26 percent at December 31, 2008.
Hancock recorded a provision for loan losses of $17.1 million in the fourth quarter which, when combined with the quarter's net charge-offs of $12.6 million, resulted in a $4.5 million increase in the allowance for loan losses between September 30, 2008, and December 31, 2008. This increase was necessary to adjust the allowance to the level dictated by the Company's reserving methodologies. Major drivers of the overall higher level of allowance for loan losses were a $176.5 million, or 17.3 percent annualized, increase in loans between September 30 and December 31, as well as continued weakness in the local and national economies, and also increases in nonperforming loans and higher past dues. The Company's allowance for loan losses was $61.7 million at December 31, 2008, compared to $57.2 million reported at September 30, 2008. The ratio of the allowance for loan losses as a percent of period-end loans was 1.45 percent at year-end 2008, compared to 1.40 percent reported at September 30, 2008.
Net Interest Income
Net interest income (te) for the fourth quarter increased $1.1 million, or 1.9 percent, while the net interest margin (te) of 3.51 percent was 53 basis points narrower than the same quarter a year ago. Growth in average earning assets was strong compared to the same quarter a year ago with an increase of $924.6 million, or 17.4 percent, mostly reflected in higher average loans (up $613.4 million, or 17.2 percent). With short-term interest rates down significantly from the same quarter a year ago, the Company's loan yield fell 136 basis points, pushing the yield on average earning assets down 113 basis points. However, total funding costs over the same quarter a year ago were down only 61 basis points.
Compared to the prior quarter, the net interest margin (te) narrowed 48 basis points and the level of net interest income was down $2.4 million, or 4.2 percent. The Company's net interest margin and net interest income levels (te) were unfavorably impacted by the Federal Reserve's decision to reduce short-term interest rates 175 basis points during the quarter. Hancock has approximately $1.3 billion in variable rate loans whose rate is indexed to prime and net interest income and net interest margin were reduced as a result of these actions. The impact on our total loan yield for the fourth quarter was a reduction of 34 basis points. Another factor impacting the quarter's net interest margin was that our total cost of funds was up 5 basis points compared to the previous quarter with rates on interest-bearing deposits up 8 basis points. The higher deposit rates in the fourth quarter were related to a deposit rate campaign in three new markets (New Orleans, Mobile, and Pensacola) that netted $319.5 million in new deposits by year-end. In addition, the mix of the quarter's overall deposit growth was weighted toward more expensive time and public fund deposits contributing almost 92.0 percent of the quarter's average growth.
Non-interest Income
Non-interest income, excluding securities transactions, for the fourth quarter was down $1.3 million, or 4.2 percent, compared to the same quarter a year ago but was up $0.4 million, or 1.3 percent, compared to the previous quarter. The primary factors impacting the lower levels of non-interest income compared to the same quarter a year ago were lower levels of trust fees (down $0.4 million, or 9.9 percent) and insurance fees (down $1.4 million, or 25.6 percent), partly offset by higher service income (up $0.3 million, or 2.5 percent). The increase in non-interest income (excluding securities transactions) for the fourth quarter compared to the prior quarter was primarily due to service charge income (up $0.4 million, or 3.2 percent) and investment and annuity fees (up $0.4 million, or 17.7 percent), but only partially offset by lower trust fees (down $0.6 million, or 12.8 percent).
Operating Expense
Operating expenses for the fourth quarter were $3.2 million, or 5.4 percent, lower compared to the same quarter a year ago, but were $0.2 million, or 0.3 percent, higher than the previous quarter. The decrease from the same quarter a year ago was reflected in lower other operating expenses (down $3.4 million) and net occupancy expense (down $1.1 million) partially offset by higher levels of personnel expense (up $1.4 million). The increase in operating expense from last quarter was due to other operating expense (up $0.7 million) offset by lower personnel expense (down $0.2 million.)
Other
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 $7.17 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.
"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 Twelve Months Ended ----------------------------------------------------- 12/31/2008 9/30/2008 12/31/2007 12/31/2008 12/31/2007 ----------------------------------------------------- Per Common Share Data ---------------- Earnings per share: Basic $0.26 $0.51 $0.53 $2.08 $2.31 Diluted $0.26 $0.50 $0.53 $2.05 $2.27 Cash dividends per share $0.240 $0.240 $0.240 $0.960 $0.960 Book value per share (period-end) $19.18 $18.95 $17.71 $19.18 $17.71 Tangible book value per share (period-end) $17.02 $16.77 $15.45 $17.02 $15.45 Weighted average number of shares: Basic 31,757 31,471 31,097 31,491 32,000 Diluted 32,059 31,905 31,577 31,883 32,544 Period-end number of shares 31,770 31,702 31,295 31,770 31,295 Market data: High closing price $56.45 $68.42 $43.47 $68.42 $54.09 Low closing price $34.20 $33.34 $33.35 $33.34 $32.78 Period end closing price $45.46 $51.00 $38.20 $45.46 $38.20 Trading volume 18,544 23,562 17,662 73,843 48,169 Other Period-end Data ---------------- FTE headcount 1,952 1,941 1,888 1,952 1,888 Tangible common equity $540,859 $531,800 $483,612 $540,859 $483,612 Tier I capital $550,216 $546,379 $497,307 $550,216 $497,307 Goodwill $62,277 $62,277 $62,277 $62,277 $62,277 Amortizable intangibles $6,059 $6,402 $7,753 $6,059 $7,753 Mortgage servicing intangibles $304 $357 $545 $304 $545 Common shares repurchased for publicly announced plans 6 0 552 6 1,556 Performance Ratios ------------------ Return on average assets 0.48% 1.00% 1.11% 1.02% 1.26% Return on average common equity 5.49% 10.90% 11.69% 11.18% 13.14% Earning asset yield (TE) 5.60% 6.02% 6.73% 5.97% 6.74% Total cost of funds 2.08% 2.03% 2.69% 2.17% 2.66% Net interest margin (TE) 3.51% 3.99% 4.04% 3.80% 4.08% Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions 64.61% 62.92% 67.98% 61.84% 64.13% Common equity (period-end) as a percent of total assets (period-end) 8.50% 8.91% 9.15% 8.50% 9.15% Leverage (Tier I) ratio 8.06% 8.66% 8.49% 8.06% 8.49% Tangible common equity ratio 7.62% 7.97% 8.08% 7.62% 8.08% Net charge-offs as a percent of average loans 1.20% 0.42% 0.26% 0.57% 0.21% Allowance for loan losses as a percent of period-end loans 1.45% 1.40% 1.31% 1.45% 1.31% Allowance for loan losses to NPAs + accruing loans 90 days past due 133.16% 189.69% 241.43% 133.16% 241.43% Loan/deposit ratio 74.58% 77.46% 72.33% 74.75% 69.55% Non-interest income excluding securities transactions as a percent of total revenue (TE) 35.73% 34.46% 37.18% 35.86% 35.89% ------------------------------------------------- Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) ----------------------------------------------------------- Three Months Ended Twelve Months Ended ----------------------------------------------------------- 12/31/2008 9/30/2008 12/31/2007 12/31/2008 12/31/2007 ----------------------------------------------------------- Asset Quality Information ------------ Non-accrual loans $29,976 $21,875 $13,067 $29,976 $13,067 Foreclosed assets 5,360 2,197 2,297 5,360 2,297 ----------------------------------------------------------- Total non- perform -ing assets $35,336 $24,072 $15,364 $35,336 $15,364 ----------------------------------------------------------- Non-perform -ing assets as a percent of loans and foreclosed assets 0.83% 0.59% 0.43% 0.83% 0.43% Accruing loans 90 days past due $11,019 $6,082 $4,154 $11,019 $4,154 Accruing loans 90 days past due as a percent of loans 0.26% 0.15% 0.12% 0.26% 0.12% Non-perform -ing assets + accruing loans 90 days past due to loans and foreclosed assets 1.09% 0.74% 0.54% 1.09% 0.54% Net charge -offs $12,591 $4,164 $2,368 $22,183 $7,242 Net charge -offs as a percent of average loans 1.20% 0.42% 0.26% 0.57% 0.21% Allowance for loan losses $61,725 $57,200 $47,123 $61,725 $47,123 Allowance for loan losses as a percent of period -end loans 1.45% 1.40% 1.31% 1.45% 1.31% Allowance for loan losses to NPAs + accruing loans 90 days past due 133.16% 189.69% 241.43% 133.16% 241.43% Provision for loan losses $17,116 $8,064 $3,590 $36,785 $7,593 Allowance for Loan Losses --------- Beginning Balance $57,200 $53,300 $45,901 $47,123 $46,772 Provision for loan loss 17,116 8,064 3,590 36,785 7,593 Charge -offs 14,107 5,133 4,244 27,407 14,452 Recoveries 1,516 969 1,876 5,224 7,210 ----------------------------------------------------------- Net charge -offs 12,591 4,164 2,368 22,183 7,242 ----------------------------------------------------------- Ending Balance $61,725 $57,200 $47,123 $61,725 $47,123 ----------------------------------------------------------- Net Charge -off Information ------------ Net charge -offs: Commercial /real estate loans $8,971 $1,556 ($100) $11,961 ($54) Mortgage loans 269 179 42 509 44 Direct consumer loans 1,039 650 886 2,719 2,720 Indirect consumer loans 1,337 867 518 3,348 1,735 Finance company loans 975 912 1,024 3,646 2,797 ----------------------------------------------------------- Total net charge -offs $12,591 $4,164 $2,370 $22,183 $7,242 =========================================================== Average loans: Commercial /real estate loans $2,622,357 $2,453,154 $2,175,648 $2,393,856 $2,076,429 Mortgage loans 432,070 427,752 393,473 418,133 385,568 Direct consumer loans 575,826 546,079 505,098 540,885 492,298 Indirect consumer loans 439,780 410,110 385,093 405,964 369,147 Finance Company loans 117,435 116,140 114,750 115,070 104,567 ----------------------------------------------------------- Total average loans $4,187,468 $3,953,235 $3,574,062 $3,873,908 $3,428,009 Net charge -offs to average loans: Commercial /real estate loans 1.36% 0.25% -0.02% 0.50% 0.00% Mortgage loans 0.25% 0.17% 0.04% 0.12% 0.01% Direct consumer loans 0.72% 0.47% 0.70% 0.50% 0.55% Indirect consumer loans 1.21% 0.84% 0.53% 0.82% 0.47% Finance Company loans 3.30% 3.12% 3.54% 3.17% 2.67% ----------------------------------------------------------- Total net charge -offs to average loans 1.20% 0.42% 0.26% 0.57% 0.21% ----------------------------------------------------------- Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) ----------------------------------------------------------- Three Months Ended Twelve Months Ended ----------------------------------------------------------- 12/31/2008 9/30/2008 12/31/2007 12/31/2008 12/31/2007 ----------------------------------------------------------- Income Statement ---------- Interest income $84,801 $84,132 $87,532 $335,437 $345,697 Interest income (TE) 87,726 86,774 90,015 345,891 355,236 Interest expense 32,727 29,357 36,067 126,002 140,236 ----------------------------------------------------------- Net interest income (TE) 54,999 57,417 53,948 219,889 215,000 Provision for loan losses 17,116 8,064 3,590 36,785 7,593 Noninterest income excluding securities trans- actions 30,578 30,194 31,924 122,953 120,378 Securities trans- actions gains/ (losses) (1,174) (79) 234 4,825 308 Noninterest expense 55,637 55,483 58,804 213,443 216,743 ----------------------------------------------------------- Income before income taxes 8,725 21,343 21,229 86,985 101,811 Income tax expense 405 5,338 4,628 21,619 27,919 ----------------------------------------------------------- Net income $8,320 $16,005 $16,601 $65,366 $73,892 =========================================================== Noninterest Income and Noninterest Expense ------------ Service charges on deposit accounts $11,467 $11,108 $11,182 $44,243 $41,929 Trust fees 3,777 4,330 4,194 16,858 15,902 Debit card & merchant fees 2,853 2,805 2,646 11,082 10,126 Insurance fees 4,136 3,819 5,557 16,554 19,229 Investment & annuity fees 2,849 2,421 2,498 10,807 8,746 ATM fees 1,690 1,718 1,626 6,856 5,983 Secondary mortgage market operations 629 817 761 2,977 3,723 Other income 3,177 3,176 3,460 13,576 14,740 ----------------------------------------------------------- Noninterest income excluding securities trans- actions $30,578 $30,194 $31,924 $122,953 $120,378 Securities trans- actions gains/ (losses) (1,174) (79) 234 4,825 308 ----------------------------------------------------------- Total noninterest income including securities trans- actions $29,404 $30,115 $32,158 $127,778 $120,686 =========================================================== Personnel expense $28,447 $28,664 $27,026 $109,773 $106,959 Occupancy expense (net) 5,047 5,188 6,162 19,538 19,435 Equipment expense 2,587 2,711 2,610 10,992 10,465 Other operating expense 19,213 18,560 22,574 71,708 78,233 Amortization of intangibles 343 360 432 1,432 1,651 ----------------------------------------------------------- Total noninterest expense $55,637 $55,483 $58,804 $213,443 $216,743 =========================================================== Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) ----------------------------------------------------------- Three Months Ended Twelve Months Ended ----------------------------------------------------------- 12/31/2008 9/30/2008 12/31/2007 12/31/2008 12/31/2007 ----------------------------------------------------------- Period-end Balance Sheet ---------- Commercial /real estate loans $2,683,188 $2,549,906 $2,200,301 $2,683,188 $2,200,301 Mortgage loans 427,720 421,254 389,685 427,720 389,685 Direct consumer loans 581,288 554,374 505,110 581,288 505,110 Indirect consumer loans 439,903 430,414 386,241 439,903 386,241 Finance Company loans 117,366 116,995 115,220 117,366 115,220 ----------------------------------------------------------- Total loans 4,249,465 4,072,943 3,596,557 4,249,465 3,596,557 Loans held for sale 22,115 16,565 18,957 22,115 18,957 Securities 1,681,957 1,659,423 1,670,208 1,681,957 1,670,208 Short-term invest- ments 549,416 306,866 126,281 549,416 126,281 ----------------------------------------------------------- Earning assets 6,502,953 6,055,797 5,412,003 6,502,953 5,412,003 ----------------------------------------------------------- Allowance for loan losses (61,725) (57,200) (47,123) (61,725) (47,123) Other assets 726,026 746,165 691,099 726,026 691,099 ----------------------------------------------------------- Total assets $7,167,254 $6,744,762 $6,055,979 $7,167,254 $6,055,979 =========================================================== Noninterest bearing deposits $962,886 $866,414 $907,874 $962,886 $907,874 Interest bearing trans- action deposits 1,443,633 1,371,400 1,343,173 1,443,633 1,343,173 Interest bearing Public Fund deposits 1,421,070 1,231,529 845,685 1,421,070 845,685 Time deposits 2,103,348 1,945,452 1,912,802 2,103,348 1,912,802 ----------------------------------------------------------- Total interest bearing deposits 4,968,051 4,548,381 4,101,660 4,968,051 4,101,660 ----------------------------------------------------------- Total deposits 5,930,937 5,414,795 5,009,534 5,930,937 5,009,534 Other borrowed funds 517,257 635,069 386,263 517,257 386,263 Other liabil- ities 109,561 94,063 105,995 109,561 105,995 Common share- holders' equity 609,499 600,835 554,187 609,499 554,187 ----------------------------------------------------------- Total liabil- ities & common equity $7,167,254 $6,744,762 $6,055,979 $7,167,254 $6,055,979 =========================================================== Average Balance Sheet -------- Commercial /real estate loans $2,622,357 $2,453,154 $2,175,648 $2,393,856 $2,076,429 Mortgage loans 432,070 427,752 393,473 418,133 385,568 Direct consumer loans 575,826 546,079 505,098 540,885 492,298 Indirect consumer loans 439,780 410,110 385,093 405,964 369,147 Finance Company loans 117,435 116,140 114,750 115,070 104,567 ----------------------------------------------------------- Total loans 4,187,468 3,953,235 3,574,062 3,873,908 3,428,009 Securities 1,645,603 1,765,702 1,700,399 1,743,998 1,726,714 Short-term invest- ments 417,370 28,161 51,384 175,891 117,158 ----------------------------------------------------------- Earning average assets 6,250,441 5,747,098 5,325,845 5,793,797 5,271,881 ----------------------------------------------------------- Allowance for loan losses (58,163) (54,786) (46,347) (53,354) (46,443) Other assets 698,751 682,316 650,616 685,946 626,451 ----------------------------------------------------------- Total assets $6,891,029 $6,374,628 $5,930,114 $6,426,389 $5,851,889 =========================================================== Noninterest bearing deposits $897,561 $869,881 $884,019 $876,669 $927,656 Interest bearing trans- action deposits 1,429,054 1,408,013 1,341,013 1,415,288 1,419,077 Interest bearing Public Fund deposits 1,213,226 1,062,127 795,024 1,046,484 803,589 Time deposits 2,074,559 1,763,609 1,921,490 1,843,966 1,778,854 ----------------------------------------------------------- Total interest bearing deposits 4,716,839 4,233,749 4,057,527 4,305,738 4,001,520 ----------------------------------------------------------- Total deposits 5,614,400 5,103,630 4,941,546 5,182,407 4,929,176 Other borrowed funds 579,328 587,939 302,150 554,898 228,010 Other liabil- ities 94,804 98,913 123,191 104,279 132,320 Common share- holders' equity 602,497 584,146 563,227 584,805 562,383 ----------------------------------------------------------- Total liabil- ities & common equity $6,891,029 $6,374,628 $5,930,114 $6,426,389 $5,851,889 =========================================================== Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) ----------------------------------------------------------- Three Months Ended Twelve Months Ended ----------------------------------------------------------- 12/31/2008 9/30/2008 12/31/2007 12/31/2008 12/31/2007 ----------------------------------------------------------- Average Balance Sheet Mix ---------- Percentage of earning assets /funding sources: Loans 66.99% 68.79% 67.11% 66.86% 65.03% Securities 26.33% 30.72% 31.93% 30.10% 32.75% Short-term invest- ments 6.68% 0.49% 0.96% 3.04% 2.22% ----------------------------------------------------------- Earning average assets 100.00% 100.00% 100.00% 100.00% 100.00% =========================================================== Noninterest bearing deposits 14.36% 15.14% 16.60% 15.13% 17.60% Interest bearing trans- action deposits 22.86% 24.50% 25.18% 24.43% 26.91% Interest bearing Public Fund deposits 19.41% 18.48% 14.93% 18.06% 15.24% Time deposits 33.19% 30.68% 36.08% 31.83% 33.74% ----------------------------------------------------------- Total deposits 89.82% 88.80% 92.79% 89.45% 93.49% Other borrowed funds 9.27% 10.23% 5.67% 9.57% 4.33% Other net interest- free funding sources 0.91% 0.97% 1.54% 0.98% 2.18% ----------------------------------------------------------- Total average funding sources 100.00% 100.00% 100.00% 100.00% 100.00% =========================================================== Loan mix: Commercial /real estate loans 62.63% 62.06% 60.88% 61.80% 60.57% Mortgage loans 10.32% 10.82% 11.01% 10.79% 11.25% Direct consumer loans 13.75% 13.81% 14.13% 13.96% 14.36% Indirect consumer loans 10.50% 10.37% 10.77% 10.48% 10.77% Finance Company loans 2.80% 2.94% 3.21% 2.97% 3.05% ----------------------------------------------------------- Total loans 100.00% 100.00% 100.00% 100.00% 100.00% =========================================================== Average dollars (in thousands): Loans $4,187,468 $3,953,235 $3,574,062 $3,873,908 $3,428,009 Securities 1,645,603 1,765,702 1,700,399 1,743,998 1,726,714 Short-term invest- ments 417,370 28,161 51,384 175,891 117,158 ----------------------------------------------------------- Earning average assets $6,250,441 $5,747,098 $5,325,845 $5,793,797 $5,271,881 Noninterest bearing deposits $897,561 $869,881 $884,019 $876,669 $927,656 Interest bearing trans- action deposits 1,429,054 1,408,013 1,341,013 1,415,288 1,419,077 Interest bearing Public Fund deposits 1,213,226 1,062,127 795,024 1,046,484 803,589 Time deposits 2,074,559 1,763,609 1,921,490 1,843,966 1,778,854 ----------------------------------------------------------- Total deposits 5,614,400 5,103,630 4,941,546 5,182,407 4,929,176 Other borrowed funds 579,328 587,939 302,150 554,898 228,010 Other net interest- free funding sources 56,713 55,529 82,149 56,492 114,695 ----------------------------------------------------------- Total average funding sources $6,250,441 $5,747,098 $5,325,845 $5,793,797 $5,271,881 Loans: Commercial /real estate loans $2,622,357 $2,453,154 $2,175,648 $2,393,856 $2,076,429 Mortgage loans 432,070 427,752 393,473 418,133 385,568 Direct consumer loans 575,826 546,079 505,098 540,885 492,298 Indirect consumer loans 439,780 410,110 385,093 405,964 369,147 Finance Company loans 117,435 116,140 114,750 115,070 104,567 ----------------------------------------------------------- Total average loans $4,187,468 $3,953,235 $3,574,062 $3,873,908 $3,428,009 ----------------------------------------------------------- Hancock Holding Company Average Balance and Net Interest Margin Summary (amounts in thousands) (unaudited) ------------------------------------------------------ Three Months Ended ------------------------------------------------------ 12/31/08 09/30/08 ------------------------- -------------------------- Interest Volume Rate Interest Volume Rate -------- ---------- ----- -------- ---------- ----- Average Earning Assets Commercial & real estate loans (TE) $36,652 $2,622,357 5.57% $36,289 $2,453,154 5.89% Mortgage loans 6,328 432,070 5.86% 6,366 427,752 5.95% Consumer loans 21,602 1,133,041 7.58% 21,237 1,072,329 7.88% Loan fees & late charges (40) -- 0.00% 455 -- 0.00% -------- ---------- ----- -------- ---------- ----- Total loans (TE) $64,542 $4,187,468 6.14% $64,347 $3,953,235 6.48% US treasury securities 53 11,380 1.84% 53 11,334 1.86% US agency securities 2,882 254,284 4.53% 3,751 333,434 4.50% CMOs 2,108 167,995 5.02% 1,786 141,355 5.05% Mortgage backed securities 13,564 1,024,421 5.30% 13,917 1,066,233 5.22% Municipals (TE) 2,178 149,418 5.83% 2,280 163,796 5.57% Other securities 411 38,105 4.31% 557 49,550 4.50% -------- ---------- ----- -------- ---------- ----- Total securities (TE) 21,196 1,645,603 5.15% 22,344 1,765,702 5.06% Total short-term investments 1,988 417,370 1.90% 83 28,161 1.18% Average earning assets yield (TE) $87,726 $6,250,441 5.60% $86,774 $5,747,098 6.02% Interest-bearing Liabilities Interest-bearing transaction deposits $ 3,333 $1,429,054 0.93% $ 3,193 $1,408,013 0.90% Time deposits 18,534 2,074,559 3.55% 15,579 1,763,609 3.51% Public Funds 7,530 1,213,226 2.47% 6,750 1,062,127 2.53% -------- ---------- ----- -------- ---------- ----- Total interest bearing deposits $29,397 4,716,839 2.48% $25,522 4,233,749 2.40% Total borrowings 3,330 579,328 2.29% 3,835 587,939 2.59% Total interest bearing liab cost $32,727 $5,296,167 2.46% $29,357 $4,821,688 2.42% Noninterest- bearing deposits 897,561 869,881 Other net interest-free funding sources 56,713 55,529 Total Cost of Funds $32,727 $6,250,441 2.08% $29,357 $5,747,098 2.03% Net Interest Spread (TE) $54,999 3.14% $57,417 3.60% Net Interest Margin (TE) $54,999 $6,250,441 3.51% $57,417 $5,747,098 3.99% -------------------------- Three Months Ended -------------------------- 12/31/07 -------------------------- Interest Volume Rate -------- ---------- ----- Average Earning Assets Commercial & real estate loans (TE) $39,445 $2,175,648 7.20% Mortgage loans 5,879 393,473 5.98% Consumer loans 21,875 1,004,941 8.64% Loan fees & late charges 274 -- 0.00% ------- ---------- ----- Total loans (TE) $67,473 3,574,062 7.50% US treasury securities 101 11,326 3.53% US agency securities 8,147 635,796 5.13% CMOs 1,116 97,074 4.60% Mortgage backed securities 9,302 709,421 5.24% Municipals (TE) 2,631 196,421 5.36% Other securities 692 50,361 5.50% ------- ---------- ----- Total securities (TE) 21,989 1,700,399 5.17% Total short-term investments 553 51,384 4.27% Average earning assets yield (TE) $90,015 $5,325,845 6.73% Interest-bearing Liabilities Interest-bearing transaction deposits $ 3,774 $1,341,013 1.12% Time deposits 22,353 1,921,490 4.62% Public Funds 7,340 795,024 3.66% ------- ---------- ----- Total interest bearing deposits $33,467 4,057,527 3.27% Total borrowings 2,600 302,150 3.41% Total interest bearing liab cost $36,067 $4,359,677 3.28% Noninterest-bearing deposits 884,019 Other net interest-free funding sources 82,149 Total Cost of Funds $36,067 $5,325,845 2.69% Net Interest Spread (TE) $53,948 3.44% Net Interest Margin (TE) $53,948 $5,325,845 4.04% Hancock Holding Company Average Balance and Net Interest Margin Summary (amounts in thousands) (unaudited) ----------------------------------------------------- Twelve Months Ended ----------------------------------------------------- 12/31/2008 12/31/2007 -------------------------- -------------------------- Interest Volume Rate Interest Volume Rate -------- ---------- ----- -------- ---------- ----- Average Earning Assets Commercial & real estate loans (TE) $143,746 $2,393,856 6.00% $153,013 $2,076,429 7.37% Mortgage loans 24,779 418,133 5.93% 22,745 385,568 5.90% Consumer loans 85,339 1,061,919 8.04% 84,920 966,012 8.79% Loan fees & late charges 483 -- 0.00% 1,266 -- 0.00% -------- ---------- ----- -------- ---------- ----- Total loans (TE) 254,347 $3,873,908 6.57% 261,944 $3,428,009 7.64% US treasury securities 296 11,366 2.60% 1,379 29,095 4.74% US agency securities 16,000 349,931 4.57% 41,111 810,299 5.07% CMOs 7,465 150,692 4.95% 3,997 94,731 4.22% Mortgage backed securities 52,564 1,012,274 5.19% 27,190 534,893 5.08% Municipals (TE) 9,320 172,307 5.41% 10,779 197,004 5.47% Other securities 2,061 47,428 4.34% 3,223 60,692 5.31% -------- ---------- ----- -------- ---------- ----- Total securities (TE) 87,706 1,743,998 5.03% 87,679 1,726,714 5.08% Total short-term investments 3,838 175,891 2.18% 5,613 117,158 4.79% Average earning assets yield (TE) $345,891 $5,793,797 5.97% $355,236 $5,271,881 6.74% Interest-Bearing Liabilities Interest-bearing transaction deposits $ 13,751 $1,415,288 0.97% $ 18,135 $1,419,077 1.28% Time deposits 70,659 1,843,966 3.83% 81,223 1,778,854 4.57% Public Funds 26,642 1,046,484 2.55% 33,561 803,589 4.18% -------- ---------- ----- -------- ---------- ----- Total interest bearing deposits $111,052 $4,305,738 2.58% $132,919 $4,001,520 3.32% Total borrowings 14,950 554,898 2.69% 7,317 228,010 3.21% Total interest bearing liab cost $126,002 $4,860,636 2.59% $140,236 $4,229,530 3.32% Noninterest- bearing deposits 876,669 927,656 Other net interest-free funding sources 56,492 114,695 Total Cost of Funds $126,002 $5,793,797 2.17% $140,236 $5,271,881 2.66% Net Interest Spread (TE) $219,889 3.38% $215,000 3.42% Net Interest Margin (TE) $219,889 $5,793,797 3.80% $215,000 $5,271,881 4.08% Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) (unaudited) --------------------------------------- 2007 --------------------------------------- 1Q 2Q 3Q 4Q --------------------------------------- Per Common Share Data --------------------- Earnings per share: Basic $0.59 $0.63 $0.55 $0.53 Diluted $0.58 $0.62 $0.55 $0.53 Cash dividends per share $0.240 $0.240 $0.240 $0.240 Book value per share (period-end) $17.27 $17.13 $17.55 $17.71 Tangible book value per share (period-end) $15.05 $14.90 $15.32 $15.45 Weighted average number of shares: Basic 32,665 32,233 32,005 31,097 Diluted 33,299 32,749 32,492 31,577 Period-end number of shares 32,518 32,094 31,786 31,295 Market data: High closing price $54.09 $44.37 $43.90 $43.47 Low closing price $41.88 $37.50 $32.78 $33.35 Period end closing price $43.98 $37.55 $40.08 $38.20 Trading volume 8,577 11,614 10,290 17,662 Other Period-end Data --------------------- FTE headcount 1,929 1,944 1,966 1,888 Tangible common equity $489,430 $478,085 $486,871 $483,612 Tier I capital $513,229 $510,096 $508,554 $497,307 Goodwill $62,277 $62,277 $62,277 $62,277 Amortizable intangibles $8,991 $8,607 $8,195 $7,753 Mortgage servicing intangibles $829 $729 $632 $545 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% Return on average common equity 13.77% 14.53% 12.58% 11.69% Earning asset yield (TE) 6.64% 6.76% 6.82% 6.73% Total cost of funds 2.60% 2.59% 2.76% 2.69% Net interest margin (TE) 4.04% 4.17% 4.06% 4.04% Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions 61.40% 61.51% 65.45% 67.98% Common equity (period-end) as a percent of total assets (period-end) 9.61% 9.36% 9.45% 9.15% Leverage (Tier I) ratio 8.80% 9.01% 8.82% 8.49% Tangible common equity ratio 8.48% 8.24% 8.34% 8.08% Net charge-offs as a percent of average loans 0.18% 0.18% 0.21% 0.26% Allowance for loan losses as a percent of period-end loans 1.41% 1.35% 1.31% 1.31% Allowance for loan losses to NPAs + loans 90 days past due 413.60% 410.98% 335.22% 241.43% Loan/deposit ratio 65.91% 69.62% 70.28% 72.33% Noninterest income excluding securities transactions as a percent of total revenue (TE) 32.96% 36.33% 36.83% 37.18% --------------------------------------- --------------------------------------- 2008 --------------------------------------- 1Q 2Q 3Q 4Q --------------------------------------- Per Common Share Data --------------------- Earnings per share: Basic $0.64 $0.67 $0.51 $0.26 Diluted $0.63 $0.66 $0.50 $0.26 Cash dividends per share $0.240 $0.240 $0.240 $0.240 Book value per share (period-end) $18.41 $18.27 $18.95 $19.18 Tangible book value per share (period-end) $16.17 $16.06 $16.77 $17.02 Weighted average number of shares: Basic 31,346 31,382 31,471 31,757 Diluted 31,790 31,814 31,905 32,059 Period-end number of shares 31,372 31,386 31,702 31,770 Market data: High closing price $44.29 $45.68 $68.42 $56.45 Low closing price $33.45 $38.38 $33.34 $34.20 Period end closing price $42.02 $39.29 $51.00 $45.46 Trading volume 17,204 14,527 23,562 18,544 Other Period-end Data --------------------- FTE headcount 1,877 1,903 1,941 1,952 Tangible common equity $507,287 $503,953 $531,800 $540,859 Tier I capital $512,248 $527,479 $546,379 $550,216 Goodwill $62,277 $62,277 $62,277 $62,277 Amortizable intangibles $7,388 $6,762 $6,402 $6,059 Mortgage servicing intangibles $477 $413 $357 $304 Common shares repurchased for publicly announced plans 0 0 0 6 Performance Ratios ------------------ Return on average assets 1.30% 1.36% 1.00% 0.48% Return on average common equity 14.13% 14.51% 10.90% 5.49% Earning asset yield (TE) 6.28% 6.03% 6.02% 5.60% Total cost of funds 2.47% 2.12% 2.03% 2.08% Net interest margin (TE) 3.80% 3.91% 3.99% 3.51% Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions 59.49% 60.26% 62.92% 64.61% Common equity (period-end) as a percent of total assets (period-end) 8.99% 9.15% 8.91% 8.50% Leverage (Tier I) ratio 8.34% 8.57% 8.66% 8.06% Tangible common equity ratio 7.98% 8.13% 7.97% 7.62% Net charge-offs as a percent of average loans 0.32% 0.27% 0.42% 1.20% Allowance for loan losses as a percent of period-end loans 1.46% 1.41% 1.40% 1.45% Allowance for loan losses to NPAs + loans 90 days past due 265.81% 203.06% 189.69% 133.16% Loan/deposit ratio 72.10% 74.82% 77.46% 74.58% Noninterest income excluding securities transactions as a percent of total revenue (TE) 36.73% 36.52% 34.46% 35.73% --------------------------------------- Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) (unaudited) ----------------------------------------------- 2007 ----------------------------------------------- 1Q 2Q 3Q 4Q ----------------------------------------------- Asset Quality Information ------------- Non-accrual loans $4,494 $7,544 $8,500 $13,067 Foreclosed assets 718 1,146 1,374 2,297 ----------------------------------------------- Total non-performing assets $5,212 $8,690 $9,874 $15,364 Non-performing assets as a percent of loans and foreclosed assets 0.16% 0.25% 0.28% 0.43% Accruing loans 90 days past due $6,035 $2,558 $3,819 $4,154 Accruing loans 90 days past due as a percent of loans 0.18% 0.07% 0.11% 0.12% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 0.34% 0.33% 0.39% 0.54% Net charge-offs $1,466 $1,528 $1,880 $2,368 Net charge-offs as a percent of average loans 0.18% 0.18% 0.21% 0.26% Allowance for loan losses $46,517 $46,227 $45,901 $47,123 Allowance for loan losses as a percent of period-end loans 1.41% 1.35% 1.31% 1.31% Allowance for loan losses to NPAs + accruing loans 90 days past due 413.60% 410.98% 335.22% 241.43% Provision for loan losses $1,211 $1,238 $1,554 $3,590 Net Charge-off Information -------------- Net charge-offs: Commercial/real estate loans $168 ($63) ($58) ($100) Mortgage loans 23 (22) -- 42 Direct consumer loans 110 617 864 886 Indirect consumer loans 675 471 314 518 Finance company loans 489 525 760 1,024 ----------------------------------------------- Total net charge-offs $1,465 $1,528 $1,880 $2,370 ----------------------------------------------- Average loans: Commercial/real estate loans $1,931,966 $2,040,088 $2,106,778 $2,175,648 Mortgage loans 426,103 382,642 388,603 393,473 Direct consumer loans 485,201 487,267 491,417 505,098 Indirect consumer loans 357,008 360,451 373,677 385,093 Finance Company loans 92,315 101,092 109,807 114,750 ----------------------------------------------- Total average loans $3,292,593 $3,371,540 $3,470,282 $3,574,062 Net charge-offs to average loans: Commercial/real estate loans 0.04% -0.01% -0.01% -0.02% Mortgage loans 0.02% -0.02% 0.00% 0.04% Direct consumer loans 0.09% 0.51% 0.70% 0.70% Indirect consumer loans 0.77% 0.52% 0.33% 0.53% Finance Company loans 2.15% 2.08% 2.74% 3.54% ----------------------------------------------- Total net charge-offs to average loans 0.18% 0.18% 0.21% 0.26% ----------------------------------------------- ----------------------------------------------- 2008 ----------------------------------------------- 1Q 2Q 3Q 4Q ----------------------------------------------- Asset Quality Information ------------- Non-accrual loans $12,983 $18,106 $21,875 $29,976 Foreclosed assets 3,619 1,693 2,197 5,360 ----------------------------------------------- Total non-performing assets $16,602 $19,799 $24,072 $35,336 Non-performing assets as a percent of loans and foreclosed assets 0.46% 0.52% 0.59% 0.83% Accruing loans 90 days past due $3,340 $6,449 $6,082 $11,019 Accruing loans 90 days past due as a percent of loans 0.09% 0.17% 0.15% 0.26% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 0.55% 0.69% 0.74% 1.09% Net charge-offs $2,933 $2,495 $4,164 $12,591 Net charge-offs as a percent of average loans 0.32% 0.27% 0.42% 1.20% Allowance for loan losses $53,008 $53,300 $57,200 $61,725 Allowance for loan losses as a percent of period-end loans 1.46% 1.41% 1.40% 1.45% Allowance for loan losses to NPAs + accruing loans 90 days past due 265.81% 203.06% 189.69% 133.16% Provision for loan losses $8,818 $2,787 $8,064 $17,116 Net Charge-off Information -------------- Net charge-offs: Commercial/real estate loans $834 $600 $1,556 $8,971 Mortgage loans -- 61 179 269 Direct consumer loans $588 $442 650 1,039 Indirect consumer loans $463 $681 867 1,337 Finance company loans $1,048 $711 912 975 ----------------------------------------------- Total net charge-offs $2,933 $2,495 $4,164 $12,591 ----------------------------------------------- Average loans: Commercial/real estate loans $2,224,695 $2,272,057 $2,453,154 $2,622,357 Mortgage loans 399,374 413,076 427,752 432,070 Direct consumer loans 514,441 526,752 546,079 575,826 Indirect consumer loans 386,985 386,565 410,110 439,780 Finance Company loans 113,113 113,555 116,140 117,435 ----------------------------------------------- Total average loans $3,638,608 $3,712,005 $3,953,235 $4,187,468 Net charge-offs to average loans: Commercial/real estate loans 0.15% 0.11% 0.25% 1.36% Mortgage loans 0.00% 0.06% 0.17% 0.25% Direct consumer loans 0.46% 0.34% 0.47% 0.72% Indirect consumer loans 0.48% 0.71% 0.84% 1.21% Finance Company loans 3.73% 2.52% 3.12% 3.30% ----------------------------------------------- Total net charge-offs to average loans 0.32% 0.27% 0.42% 1.20% ----------------------------------------------- Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) (unaudited) ---------------------------------- 2007 ---------------------------------- 1Q 2Q 3Q 4Q ---------------------------------- Income Statement ---------------- Interest income $85,661 $84,895 $87,609 $87,532 Interest income (TE) 88,077 87,162 89,982 90,015 Interest expense 34,308 33,394 36,467 36,067 ---------------------------------- Net interest income (TE) 53,769 53,768 53,515 53,948 Provision for loan losses 1,211 1,238 1,554 3,590 Noninterest income excluding securities transactions 26,504 30,752 31,198 31,924 Securities transactions gains/ (losses) 6 34 34 234 Noninterest expense 49,708 52,374 55,857 58,804 ---------------------------------- Income before income taxes 26,944 28,675 24,963 21,229 Income tax expense 7,715 8,352 7,224 4,628 ---------------------------------- Net income 19,229 20,323 17,739 16,601 ================================== Noninterest Income ------------------ and Noninterest Expense ----------------------- Service charges on deposit accounts $9,190 $10,472 $11,085 $11,182 Trust fees 3,693 4,123 3,892 4,194 Debit card & merchant fees 2,291 2,618 2,571 2,646 Insurance fees 4,369 5,033 4,270 5,557 Investment & annuity fees 1,978 2,017 2,253 2,498 ATM fees 1,380 1,427 1,550 1,626 Secondary mortgage market operations 911 1,116 935 761 Other income 2,692 3,946 4,642 3,460 ---------------------------------- Noninterest income excluding securities transactions $26,504 $30,752 $31,198 $31,924 Securities transactions gains/ (losses) 6 34 34 234 ---------------------------------- Total noninterest income including securities transactions $26,510 $30,786 $31,232 $32,158 ================================== Personnel expense $26,564 $24,838 $28,531 $27,026 Occupancy expense (net) 4,073 4,469 4,731 6,162 Equipment expense 2,273 2,768 2,814 2,610 Other operating expense 16,375 19,915 19,369 22,574 Amortization of intangibles 423 384 412 432 ---------------------------------- Total noninterest expense $49,708 $52,374 $55,857 $58,804 ---------------------------------- ---------------------------------- 2008 ---------------------------------- 1Q 2Q 3Q 4Q ---------------------------------- Income Statement ---------------- Interest income $84,772 $81,732 $84,132 $84,801 Interest income (TE) 87,227 84,164 86,774 87,726 Interest expense 34,345 29,573 29,357 32,727 ---------------------------------- Net interest income (TE) 52,882 54,591 57,417 54,999 Provision for loan losses 8,818 2,787 8,064 17,116 Noninterest income excluding securities transactions 30,769 31,412 30,194 30,578 Securities transactions gains/ (losses) 5,652 426 (79) (1,174) Noninterest expense 50,134 52,189 55,483 55,637 ---------------------------------- Income before income taxes 27,896 29,021 21,343 8,725 Income tax expense 7,839 8,037 5,338 405 ---------------------------------- Net income 20,057 20,984 16,005 8,320 ================================== Noninterest Income ------------------ and Noninterest Expense ----------------------- Service charges on deposit accounts $10,789 $10,879 $11,108 $11,467 Trust fees 4,176 4,575 4,330 3,777 Debit card & merchant fees 2,540 2,884 2,805 2,853 Insurance fees 4,340 4,259 3,819 4,136 Investment & annuity fees 2,810 2,727 2,421 2,849 ATM fees 1,691 1,757 1,718 1,690 Secondary mortgage market operations 778 753 817 629 Other income 3,645 3,578 3,176 3,177 ---------------------------------- Noninterest income excluding securities transactions $30,769 $31,412 $30,194 $30,578 Securities transactions gains/ (losses) 5,652 426 (79) (1,174) ---------------------------------- Total noninterest income including securities transactions $36,421 $31,838 $30,115 $29,404 ================================== Personnel expense $25,631 $27,031 $28,664 $28,447 Occupancy expense (net) 4,601 4,702 5,188 5,047 Equipment expense 2,909 2,785 2,711 2,587 Other operating expense 16,628 17,307 18,560 19,213 Amortization of intangibles 365 364 360 343 Total noninterest expense $50,134 $52,189 $55,483 $55,637 ----------------------------------