GULFPORT, Miss., April 20, 2010 (GLOBE NEWSWIRE) -- Hancock Holding Company (Nasdaq:HBHC) today announced net income for the quarter ended March 31, 2010. Hancock's first quarter 2010 net income was $13.8 million and diluted earnings per share were $0.37. The first quarter 2010 results include the impact of the Company's recent common stock offering and acquisition of Peoples First Community Bank (Peoples First), both of which were completed in the fourth quarter of 2009. Excluding the pretax impact of $1.4 million of one-time costs related the fourth quarter acquisition of Peoples First, net income for the first quarter was $14.8 million and diluted earnings per share of $0.40. Return on average assets (excluding the $1.4 million of one-time mergers costs) for the first quarter was 0.69 percent.
Compared to the first quarter of 2009, net income for 2010's first quarter (excluding one-time merger costs) was up $745 thousand, or 5.3 percent. Diluted earnings per share were $0.04 lower, primarily due to the additional shares outstanding related to the recent common stock offering.
Hancock's pre-tax, pre-provision income was $31.6 million, an increase of $4.9 million, or 18.5 percent, over 2009's first quarter. Pre-tax pre-provision income is total revenue less noninterest expense and excludes one-time merger expenses and securities transactions.
Commenting on the Company's first quarter results, Hancock Holding Company President and Chief Executive Officer Carl J. Chaney stated, "The Company's first quarter results were in line with management's expectations and continue to reflect Hancock's leadership role in the banking industry as a source of strength and stability. Last quarter's acquisition of Peoples First continues to be a shining success for Hancock. Deposit runoff, normally significant in a transaction of this type, is running about 3 percent with an actual core deposit increase of about $54 million, or 11 percent. On behalf of our board and management team, we offer sincere congratulations to all of our associates for a continued job well done."
Highlights & Key Operating Items from Hancock's First Quarter Results
Balance Sheet and Capital
Total assets at March 31, 2010 were $8.57 billion, down $131.6 million or 1.5 percent, from $8.70 billion at December 31, 2009. Compared to March 31, 2009, total assets increased $1.47 billion, or 20.7 percent. The overall increase in total assets from 2009's first quarter was due to the acquisition of Peoples First headquartered in Panama City, Florida in December 2009. Hancock continued to remain well capitalized with total equity of $850.8 million at March 31, 2010, up $225.5 million, or 36.1 percent, from March 31, 2009. Hancock's tangible equity ratio at March 31, 2010, was 9.10 percent, up 29 basis points from the 8.81 percent reported at December 31, 2009.
Loan Growth
For the quarter ended March 31, 2010, Hancock's average total loans were $5.1 billion, which represented an increase of $803.2 million, or 18.7 percent, from the same quarter a year ago and was up $713.3 million, or 16.3 percent from the fourth quarter of 2009. The increased level of average loans from last quarter and from the same quarter a year ago was related to the acquisition of Peoples First in which Hancock acquired $950 million of fair-value adjusted loans with loss share coverage from the FDIC. Period-end loans were down $102.5 million, or 2.0 percent, from last quarter. The decrease in period-end loans was in commercial/real estate (down $40.3 million, or 1.3 percent), indirect consumer loans (down $27.2 million or 7.3 percent), mortgage loans (down $21.6 million or 2.9 percent), direct consumer loans (down $8.9 million or 1.2 percent), and finance company loans (down $4.5 million or 4.0 percent).
Deposit Growth
Period-end deposits for the first quarter were $7.00 billion, up $1.20 billion, or 20.7 percent, from March 31, 2009, and were down $191.1 million, or 2.7 percent, from December 31, 2009. The increase in period-end deposits as compared to March 31, 2009, was due primarily to the acquisition of Peoples First. Average deposits were up $1.50 billion, or 26.8 percent, from the fourth quarter of 2009. The increase in average deposits was due to the acquisition of Peoples First in mid December 2009. The increase was reflected in time deposits (up $844.4 million), interest bearing transaction deposits (up $369.2 million), non-interest bearing deposits (up $75.2 million), and interest-bearing public fund deposits (up $216.0 million).
Asset Quality
Net charge-offs for 2010's first quarter were $13.3 million, or 1.06 percent of average loans, down $0.4 million from the $13.6 million, or 1.24 percent of average loans, reported for the fourth quarter of 2009. Non-performing assets as a percent of total loans and foreclosed assets was 2.44 percent at March 31, 2010, up from 1.97 percent at December 31, 2009. Non-accrual loans increased $6.3 million while other real estate owned (ORE) increased $15.9 million compared to the prior quarter. Loans 90 days past due or greater (accruing) as a percent of period end loans, increased 4 basis points from December 30, 2009 to 0.27 percent at March 31, 2010.
Hancock recorded a provision for loan losses for the first quarter of $13.8 million. The Company's allowance for loan losses was $66.6 million at March 31, 2010, and $66.1 million at December 31, 2009. The ratio of the allowance for loan losses as a percent of period-end loans was 1.33 percent at March 31, 2010, compared to 1.29 at December 31, 2009. Additional asset quality information (inclusive and exclusive of the acquisition of Peoples First) is provided in the table below:
| Consolidated | Consolidated | |
| Hancock | Without | |
| Asset Quality Information | Holding Company | Peoples First |
| Non-accrual loans | $92,828 | $37,251 |
| Foreclosed assets | 30,243 | 16,051 |
| Total non-performing assets | $123,071 | $53,302 |
| Non-performing assets as a percent of loans and foreclosed assets | 2.44% | 1.29% |
| Accruing loans 90 days past due | $13,457 | $13,457 |
| Accruing loans 90 days past due as a percent of loans | 0.27% | 0.33% |
| Non-performing assets + accruing loans 90 days past due | ||
| to loans and foreclosed assets | 2.71% | 1.62% |
| Allowance for loan losses | $66,625 | $66,625 |
| Allowance for loan losses as a percent of period-end loans | 1.33% | 1.62% |
| Allowance for loan losses to NPAs + accruing loans 90 days past due | 48.80% | 99.80% |
| (a) Accruing loans past due 90 days or more do not include purchased impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan. | ||
Net Interest Income
Net interest income (te) for the first quarter increased $13.2 million, or 23.4 percent, while the net interest margin (te) of 3.75 percent was 25 basis points wider 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 $1.00 billion, or 15.5 percent, mostly reflected in higher average loans (up $803.2 million, or 18.7 percent) and was due primarily to the fourth quarter 2009 acquisition of Peoples First.
The Company's loan yield increased 24 basis points, while the yield on securities decreased 37 basis points, pushing the yield on average earning assets down 11 basis points. However, total funding costs over the same quarter a year ago were down 35 basis points.
Compared to the prior quarter, the net interest margin (te) narrowed 21 basis points, but the level of net interest income was up $5.9 million, or 9.2 percent, mostly due to the Peoples First acquisition. The yield on average earning assets was down 17 basis points from last quarter at 5.15 percent, while the total cost of funds increased by 5 basis points (mostly due to unfavorable deposit mix related to Peoples First).
Non-interest Income
Non-interest income, excluding securities transactions, for the first quarter was up $2.3 million, or 8.0 percent, compared to the same quarter a year ago but was down $32.0 million, or 50.5 percent, compared to the previous quarter. Factors impacting noninterest income compared to the same quarter a year ago were higher levels of debit card and merchant fees (up $1.0 million or 40.0 percent), service charges on deposit accounts (up $987 thousand or 9.4 percent), trust fees (up $519 thousand or 15.6 percent), secondary mortgage market operations (up $482 thousand or 41.6 percent), and ATM fees (up $172 thousand or 9.7 percent). These increases were partially offset by decreases in investment and annuity fees (down $582 million or 20.3 percent) and other income (down $339 thousand or 10.0 percent).
The decrease in non-interest income (excluding securities transactions) for the first quarter compared to the prior quarter was primarily due to the acquisition gain of Peoples First in the amount of $33.6 million reported in the prior quarter. Excluding the acquisition gain, non-interest income increased by $1.7 million compared to the prior quarter. Factors contributing to the increase were debit card and merchant fees (up $652 thousand or 22.1 percent), investment and annuity fees (up $617 thousand or 37.1 percent), other income (up $301 thousand or 10.9 percent), secondary mortgage market operations (up $201 thousand or 14.0 percent), insurance fees (up $182 thousand or 5.5 percent), and ATM fees (up $113 thousand or 6.1 percent). These increases were offset slightly by decreases in service charges on deposit accounts (down $324 thousand or 2.7 percent) and trust fees (down $91 thousand or 2.3 percent).
Operating Expense & Taxes
Operating expenses for the first quarter were up $12.0 million, or 21.5 percent, compared to the same quarter a year ago, and were $4.2 million, or 6.5 percent, higher than the previous quarter. The increase from the same quarter a year ago was reflected in higher other operating expense (up $6.3 million or 37.0 percent), personnel expense (up $4.0 million or 13.0 percent), occupancy expense (up $1.1 million or 21.5 percent), amortization of intangibles expense (up $384 thousand or 108.5 percent) and equipment expense (up $190 thousand or 7.5 percent) primarily due to the acquisition of Peoples First. One-time merger costs included in the first quarter of 2010 were $1.4 million and $3.7 million for the fourth quarter of 2009.
For the three months ended March 31, 2010 and 2009, the effective income tax rates were approximately 15% and 23%, respectively. Because of the reduced level of pretax income in 2010, the tax exempt interest income and the utilization of tax credits had a significant impact on the effective tax rate. The source of the tax credits for 2010 and 2009 resulted from investments in New Market Tax Credits, Qualified Bond Credits and Work Opportunity Tax Credits.
About Hancock Holding Company
Hancock Holding Company — parent company of Hancock Bank (Mississippi), Hancock Bank of Louisiana, and Hancock Bank of Alabama — had assets of approximately $8.6 billion as of March 31, 2010. Founded in 1899, Hancock Bank consistently ranks as one of the country's strongest, safest financial institutions, according to BauerFinancial, Inc. More corporate information and e-banking are available at www.hancockbank.com.
The Hancock Holding Company logo is available at http://www.globenewswire.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 | - Add 4 - | ||
| Financial Highlights | |||
| (amounts in thousands, except per share data and FTE headcount) | |||
| (unaudited) | |||
| Three Months Ended | |||
| 3/31/2010 | 12/31/2009 | 3/31/2009 | |
| Per Common Share Data | |||
| Earnings per share: | |||
| Basic | $0.37 | $0.89 | $0.44 |
| Diluted | $0.37 | $0.89 | $0.44 |
| Cash dividends per share | $0.24 | $0.24 | $0.24 |
| Book value per share (period-end) | $23.05 | $22.74 | $19.66 |
| Tangible book value per share (period-end) | $20.94 | $20.60 | $17.51 |
| Weighted average number of shares: | |||
| Basic | 36,868 | 35,481 | 31,805 |
| Diluted | 37,105 | 35,705 | 31,937 |
| Period-end number of shares | 36,905 | 36,840 | 31,813 |
| Market data: | |||
| High sales price | $45.86 | $44.89 | $45.56 |
| Low sales price | $38.23 | $35.26 | $22.51 |
| Period end closing price | $41.81 | $43.81 | $31.28 |
| Trading volume | 9,612 | 19,538 | 18,026 |
| Other Period-end Data | |||
| FTE headcount | 2,263 | 2,240 | 1,938 |
| Tangible common equity | $772,735 | $758,840 | $557,013 |
| Tier I capital | $764,074 | $756,106 | $558,502 |
| Goodwill | $62,277 | $62,277 | $62,277 |
| Amortizable intangibles | $15,521 | $16,252 | $5,705 |
| Performance Ratios | |||
| Return on average assets | 0.65% | 1.75% | 0.79% |
| Return on average common equity | 6.58% | 15.92% | 9.12% |
| Earning asset yield (TE) | 5.15% | 5.32% | 5.26% |
| Total cost of funds | 1.40% | 1.35% | 1.75% |
| Net interest margin (TE) | 3.75% | 3.96% | 3.50% |
| Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions | 66.43% | 49.82% | 64.93% |
| Common equity (period-end) as a percent of total assets (period-end) | 9.93% | 9.63% | 8.81% |
| Leverage (Tier I) ratio | 8.91% | 10.60% | 7.85% |
| Tangible common equity ratio | 9.10% | 8.81% | 7.92% |
| Net charge-offs as a percent of average loans | 1.06% | 1.24% | 0.67% |
| Allowance for loan losses as a percent of period-end loans | 1.33% | 1.29% | 1.49% |
| Allowance for loan losses to NPAs + accruing loans 90 days past due | 48.80% | 58.69% | 119.72% |
| Average loan/deposit ratio | 71.45% | 77.89% | 72.51% |
| Non-interest income excluding securities transactions as a percent of total revenue (TE) | 31.08% | 49.86% | 34.00% |
| Hancock Holding Company | - Add 5 - | ||
| Financial Highlights | |||
| (amounts in thousands) | |||
| (unaudited) | |||
| Three Months Ended | |||
| 3/31/2010 | 12/31/2009 | 3/31/2009 | |
| Asset Quality Information | |||
| Non-accrual loans | $92,828 | $86,555 | $38,327 |
| Foreclosed assets | 30,243 | 14,336 | 5,946 |
| Total non-performing assets | $123,071 | $100,891 | $44,273 |
| Non-performing assets as a percent of loans and foreclosed assets | 2.44% | 1.97% | 1.04% |
| Accruing loans 90 days past due (a) | $13,457 | $11,647 | $8,306 |
| Accruing loans 90 days past due as a percent of loans | 0.27% | 0.23% | 0.20% |
| Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets | 2.71% | 2.20% | 1.24% |
| Net charge-offs | $13,251 | $13,634 | $7,117 |
| Net charge-offs as a percent of average loans | 1.06% | 1.24% | 0.67% |
| Allowance for loan losses | $66,625 | $66,050 | $62,950 |
| Allowance for loan losses as a percent of period-end loans | 1.33% | 1.29% | 1.49% |
| Allowance for loan losses to NPAs + accruing loans 90 days past due | 48.80% | 58.69% | 119.72% |
| Provision for loan losses | $13,826 | $15,834 | $8,342 |
| (a) Accruing loans past due 90 days or more do not include purchased impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan. | |||
| Allowance for Loan Losses | |||
| Beginning Balance | $66,050 | $63,850 | $61,725 |
| Provision for loan loss | 13,826 | 15,834 | 8,342 |
| Charge-offs | 15,160 | 14,732 | 8,277 |
| Recoveries | 1,909 | 1,098 | 1,160 |
| Net charge-offs | 13,251 | 13,634 | 7,117 |
| Ending Balance | $66,625 | $66,050 | $62,950 |
| Net Charge-off Information | |||
| Net charge-offs: | |||
| Commercial/real estate loans | $10,238 | $9,110 | $4,536 |
| Mortgage loans | 608 | 1,211 | 177 |
| Direct consumer loans | 608 | 1,209 | 599 |
| Indirect consumer loans | 608 | 883 | 847 |
| Finance company loans | 1,189 | 1,221 | 958 |
| Total net charge-offs | $13,251 | $13,634 | $7,117 |
| Average loans: | |||
| Commercial/real estate loans | $3,145,748 | $2,777,866 | $2,688,557 |
| Mortgage loans | 735,279 | 470,441 | 445,741 |
| Direct consumer loans | 737,728 | 630,511 | 605,685 |
| Indirect consumer loans | 359,965 | 386,157 | 430,965 |
| Finance Company loans | 109,819 | 110,233 | 114,428 |
| Total average loans | $5,088,539 | $4,375,208 | $4,285,376 |
| Net charge-offs to average loans: | |||
| Commercial/real estate loans | 1.32% | 1.30% | 0.68% |
| Mortgage loans | 0.34% | 1.02% | 0.16% |
| Direct consumer loans | 0.33% | 0.76% | 0.40% |
| Indirect consumer loans | 0.69% | 0.91% | 0.80% |
| Finance Company loans | 4.39% | 4.39% | 3.40% |
| Total net charge-offs to average loans | 1.06% | 1.24% | 0.67% |
| Hancock Holding Company | - Add 6 - | ||
| Financial Highlights | |||
| (amounts in thousands) | |||
| (unaudited) | |||
| Three Months Ended | |||
| 3/31/2010 | 12/31/2009 | 3/31/2009 | |
| Income Statement | |||
| Interest income | $92,379 | $82,416 | $81,448 |
| Interest income (TE) | 95,396 | 85,585 | 84,392 |
| Interest expense | 25,800 | 21,881 | 28,002 |
| Net interest income (TE) | 69,596 | 63,704 | 56,390 |
| Provision for loan losses | 13,826 | 15,834 | 8,342 |
| Noninterest income excluding securities transactions | 31,381 | 63,353 | 29,055 |
| Securities transactions gains/(losses) | -- | 7 | -- |
| Noninterest expense | 67,822 | 63,657 | 55,838 |
| Income before income taxes | 16,312 | 44,404 | 18,321 |
| Income tax expense | 2,478 | 12,624 | 4,290 |
| Net income | $13,834 | $31,780 | $14,031 |
| Pre-tax, pre-provision income (PTPP) (b) | $31,587 | $63,914 | $26,663 |
| Noninterest Income and Noninterest Expense | |||
| Service charges on deposit accounts | $11,490 | $11,814 | $10,503 |
| Trust fees | 3,846 | 3,937 | 3,327 |
| Debit card & merchant fees | 3,596 | 2,944 | 2,568 |
| Insurance fees | 3,511 | 3,329 | 3,452 |
| Investment & annuity fees | 2,279 | 1,662 | 2,861 |
| ATM fees | 1,951 | 1,838 | 1,779 |
| Secondary mortgage market operations | 1,640 | 1,439 | 1,158 |
| Gain on acquisition | -- | 33,623 | -- |
| Other income | 3,068 | 2,767 | 3,407 |
| Noninterest income excluding securities transactions | $31,381 | $63,353 | $29,055 |
| Securities transactions gains/(losses) | -- | 7 | -- |
| Total noninterest income including securities transactions | $31,381 | $63,360 | $29,055 |
| Personnel expense | $34,767 | $32,858 | $30,775 |
| Occupancy expense (net) | 6,143 | 5,126 | 5,055 |
| Equipment expense | 2,724 | 2,335 | 2,534 |
| Other operating expense | 23,450 | 22,984 | 17,120 |
| Amortization of intangibles | 738 | 354 | 354 |
| Total noninterest expense | $67,822 | $63,657 | $55,838 |
| (b) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense, one-time merger expenses, and securities transactions. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle. | |||
| Hancock Holding Company | - Add 7 - | ||
| Financial Highlights | |||
| (amounts in thousands) | |||
| (unaudited) | |||
| Three Months Ended | |||
| 3/31/2010 | 12/31/2009 | 3/31/2009 | |
| Period-end Balance Sheet | |||
| Commercial/real estate loans | $3,120,584 | $3,160,912 | $2,683,684 |
| Mortgage loans | 718,333 | 739,899 | 420,798 |
| Direct consumer loans | 719,071 | 728,000 | 595,470 |
| Indirect consumer loans | 346,160 | 373,353 | 423,066 |
| Finance Company loans | 107,542 | 112,011 | 111,651 |
| Total loans | 5,011,690 | 5,114,175 | 4,234,669 |
| Loans held for sale | 22,210 | 36,112 | 27,447 |
| Securities | 1,758,972 | 1,611,327 | 1,714,150 |
| Short-term investments | 689,014 | 797,262 | 453,240 |
| Earning assets | 7,481,886 | 7,558,876 | 6,429,506 |
| Allowance for loan losses | (66,625) | (66,050) | (62,950) |
| Other assets | 1,150,219 | 1,204,257 | 730,928 |
| Total assets | $8,565,480 | $8,697,083 | $7,097,484 |
| Noninterest bearing deposits | $1,022,372 | $1,073,341 | $954,101 |
| Interest bearing transaction deposits | 1,931,749 | 1,887,229 | 1,513,467 |
| Interest bearing Public Fund deposits | 1,187,410 | 1,262,750 | 1,456,286 |
| Time deposits | 2,863,196 | 2,972,492 | 1,880,152 |
| Total interest bearing deposits | 5,982,355 | 6,122,471 | 4,849,905 |
| Total deposits | 7,004,727 | 7,195,812 | 5,804,006 |
| Other borrowed funds | 578,777 | 527,231 | 562,224 |
| Other liabilities | 131,173 | 136,377 | 105,911 |
| Common shareholders' equity | 850,803 | 837,663 | 625,343 |
| Total liabilities & common equity | $8,565,480 | $8,697,083 | $7,097,484 |
| Commercial Loans/Real Estate Loans | |||
| Commercial non-real estate loans | $439,636 | $461,566 | $455,045 |
| Construction and land development loans | 801,474 | 833,938 | 586,272 |
| Commercial real estate secured loans | 1,360,774 | 1,333,065 | 1,112,747 |
| Municipal loans | 459,208 | 469,545 | 465,317 |
| Lease financing | 59,492 | 62,798 | 64,303 |
| Total commercial/real estate loans | $3,120,584 | $3,160,912 | $2,683,684 |
| Construction and Land Development Loans | |||
| Residential construction | $109,176 | $129,505 | $92,944 |
| Commercial owner occupied | 172,977 | 159,307 | 91,579 |
| Commercial non-owner occupied | 114,752 | 121,672 | 90,261 |
| Land development | 249,461 | 270,465 | 199,304 |
| Lots | 155,108 | 152,989 | 112,184 |
| Total construction and land development loans | $801,474 | $833,938 | $586,272 |
| Commercial Real Estate Secured Loans | |||
| Commercial real estate owner occupied | $691,371 | $682,468 | $577,697 |
| Commercial real estate non-owner occupied | 669,403 | 650,597 | 535,050 |
| Total commercial real estate secured loans | $1,360,774 | $1,333,065 | $1,112,747 |
| Hancock Holding Company | - Add 8 - | ||
| Financial Highlights | |||
| (amounts in thousands) | |||
| (unaudited) | |||
| Three Months Ended | |||
| 3/31/2010 | 12/31/2009 | 3/31/2009 | |
| Average Balance Sheet | |||
| Commercial/real estate loans | 3,145,748 | 2,777,866 | $2,688,557 |
| Mortgage loans | 735,279 | 470,441 | 445,741 |
| Direct consumer loans | 737,728 | 630,511 | 605,685 |
| Indirect consumer loans | 359,965 | 386,157 | 430,965 |
| Finance Company loans | 109,819 | 110,233 | 114,428 |
| Total loans | 5,088,539 | 4,375,208 | 4,285,376 |
| Securities | 1,572,883 | 1,533,366 | 1,649,612 |
| Short-term investments | 813,122 | 498,930 | 537,420 |
| Earning average assets | 7,474,544 | 6,407,504 | 6,472,408 |
| Allowance for loan losses | (66,170) | (64,561) | (62,332) |
| Other assets | 1,246,022 | 870,380 | 773,810 |
| Total assets | $8,654,396 | $7,213,323 | $7,183,886 |
| Noninterest bearing deposits | $1,018,863 | $943,622 | $913,807 |
| Interest bearing transaction deposits | 1,894,997 | 1,525,783 | 1,462,801 |
| Interest bearing Public Fund deposits | 1,275,202 | 1,059,189 | 1,499,354 |
| Time deposits | 2,933,094 | 2,088,701 | 2,033,925 |
| Total interest bearing deposits | 6,103,293 | 4,673,673 | 4,996,080 |
| Total deposits | 7,122,156 | 5,617,295 | 5,909,887 |
| Other borrowed funds | 543,307 | 686,218 | 536,474 |
| Other liabilities | 135,814 | 117,717 | 113,286 |
| Common shareholders' equity | 853,119 | 792,093 | 624,239 |
| Total liabilities & common equity | $8,654,396 | $7,213,323 | $7,183,886 |
| Hancock Holding Company | - Add 9 - | ||
| Financial Highlights | |||
| (amounts in thousands) | |||
| (unaudited) | |||
| Three Months Ended | |||
| 3/31/2010 | 12/31/2009 | 3/31/2009 | |
| Average Balance Sheet Mix | |||
| Percentage of earning assets/funding sources: | |||
| Loans | 68.08% | 68.28% | 66.21% |
| Securities | 21.04% | 23.93% | 25.49% |
| Short-term investments | 10.88% | 7.79% | 8.30% |
| Earning average assets | 100.00% | 100.00% | 100.00% |
| Noninterest bearing deposits | 13.63% | 14.72% | 14.11% |
| Interest bearing transaction deposits | 25.35% | 23.81% | 22.59% |
| Interest bearing Public Fund deposits | 17.06% | 16.53% | 23.16% |
| Time deposits | 39.24% | 32.59% | 31.42% |
| Total deposits | 95.28% | 87.65% | 91.28% |
| Other borrowed funds | 7.27% | 10.71% | 8.29% |
| Other net interest-free funding sources | -2.55% | 1.64% | 0.43% |
| Total average funding sources | 100.00% | 100.00% | 100.00% |
| Loan mix: | |||
| Commercial/real estate loans | 61.82% | 63.49% | 62.74% |
| Mortgage loans | 14.45% | 10.75% | 10.40% |
| Direct consumer loans | 14.50% | 14.41% | 14.13% |
| Indirect consumer loans | 7.07% | 8.83% | 10.06% |
| Finance Company loans | 2.16% | 2.52% | 2.67% |
| Total loans | 100.00% | 100.00% | 100.00% |
| Average dollars (in thousands): | |||
| Loans | $5,088,539 | $4,375,208 | $4,285,376 |
| Securities | 1,572,883 | 1,533,366 | 1,649,612 |
| Short-term investments | 813,122 | 498,930 | 537,420 |
| Earning average assets | $7,474,544 | $6,407,504 | $6,472,408 |
| Noninterest bearing deposits | $1,018,863 | $943,622 | $913,807 |
| Interest bearing transaction deposits | 1,894,997 | 1,525,783 | 1,462,801 |
| Interest bearing Public Fund deposits | 1,275,202 | 1,059,189 | 1,499,354 |
| Time deposits | 2,933,094 | 2,088,701 | 2,033,925 |
| Total deposits | 7,122,156 | 5,617,295 | 5,909,887 |
| Other borrowed funds | 543,307 | 686,218 | 536,474 |
| Other net interest-free funding sources | (190,919) | 103,991 | 26,047 |
| Total average funding sources | $7,474,544 | $6,407,504 | $6,472,408 |
| Loans: | |||
| Commercial/real estate loans | $3,145,748 | $2,777,866 | $2,688,557 |
| Mortgage loans | 735,279 | 470,441 | 445,741 |
| Direct consumer loans | 737,728 | 630,511 | 605,685 |
| Indirect consumer loans | 359,965 | 386,157 | 430,965 |
| Finance Company loans | 109,819 | 110,233 | 114,428 |
| Total average loans | $5,088,539 | $4,375,208 | $4,285,376 |
| Hancock Holding Company | - Add 10 - | ||||||||
| Average Balance and Net Interest Margin Summary | |||||||||
| (amounts in thousands) | |||||||||
| (unaudited) | |||||||||
| Three Months Ended | |||||||||
| 03/31/10 | 12/31/09 | 03/31/09 | |||||||
| Interest | Volume | Rate | Interest | Volume | Rate | Interest | Volume | Rate | |
| Average Earning Assets | |||||||||
| Commercial & real estate loans (TE) | $42,603 | $3,145,748 | 5.48% | $39,155 | $2,777,866 | 5.60% | $34,463 | $2,688,557 | 5.18% |
| Mortgage loans | 12,217 | 735,279 | 6.65% | 6,771 | 470,441 | 5.76% | 6,455 | 445,741 | 5.79% |
| Consumer loans | 21,491 | 1,207,512 | 7.22% | 20,102 | 1,126,901 | 7.08% | 20,567 | 1,151,078 | 7.26% |
| Loan fees & late charges | 228 | -- | 0.00% | 81 | -- | 0.00% | 345 | -- | 0.00% |
| Total loans (TE) | $76,539 | $5,088,539 | 6.08% | $66,109 | $4,375,208 | 6.00% | $61,830 | 4,285,376 | 5.84% |
| US treasury securities | 15 | 11,838 | 0.50% | 19 | 10,487 | 0.70% | 51 | 11,314 | 1.82% |
| US agency securities | 1,387 | 163,132 | 3.40% | 1,379 | 132,353 | 4.17% | 2,316 | 226,002 | 4.10% |
| CMOs | 2,063 | 168,129 | 4.91% | 1,864 | 143,129 | 5.21% | 2,308 | 187,901 | 4.91% |
| Mortgage backed securities | 12,051 | 1,022,288 | 4.72% | 12,853 | 1,047,209 | 4.91% | 13,369 | 1,045,740 | 5.11% |
| Municipals (TE) | 2,491 | 192,447 | 5.18% | 2,552 | 182,520 | 5.59% | 2,285 | 154,266 | 5.93% |
| Other securities | 261 | 15,049 | 6.94% | 273 | 17,668 | 6.17% | 362 | 24,389 | 5.94% |
| Total securities (TE) | 18,268 | 1,572,883 | 4.65% | 18,940 | 1,533,366 | 4.94% | 20,691 | 1,649,612 | 5.02% |
| Total short-term investments | 589 | 813,122 | 0.29% | 536 | 498,930 | 0.43% | 1,871 | 537,420 | 1.41% |
| Average earning assets yield (TE) | $95,396 | $7,474,544 | 5.15% | $85,585 | $6,407,504 | 5.32% | $84,392 | $6,472,408 | 5.26% |
| Interest-bearing Liabilities | |||||||||
| Interest-bearing transaction deposits | $2,503 | $1,894,997 | 0.54% | $1,606 | $1,525,783 | 0.42% | $2,086 | $1,462,801 | 0.58% |
| Time deposits | 17,537 | 2,933,094 | 2.42% | 14,480 | 2,088,701 | 2.75% | 16,706 | 2,033,925 | 3.33% |
| Public Funds | 3,243 | 1,275,202 | 1.03% | 2,965 | 1,059,189 | 1.11% | 6,562 | 1,499,354 | 1.78% |
| Total interest bearing deposits | $23,283 | 6,103,293 | 1.55% | $19,051 | 4,673,673 | 1.62% | $25,354 | 4,996,080 | 2.06% |
| Total borrowings | 2,517 | 543,307 | 1.88% | 2,830 | 686,218 | 1.64% | 2,648 | 536,474 | 2.00% |
| Total interest bearing liab cost | $25,800 | $6,646,600 | 1.57% | $21,881 | $5,359,891 | 1.62% | $28,002 | $5,532,554 | 2.05% |
| Noninterest-bearing deposits | 1,018,863 | 943,622 | 913,807 | ||||||
| Other net interest-free funding sources | (190,919) | 103,991 | 26,047 | ||||||
| Total Cost of Funds | $25,800 | $7,474,544 | 1.40% | $21,881 | $6,407,504 | 1.35% | $28,002 | $6,472,408 | 1.75% |
| Net Interest Spread (TE) | $69,596 | 3.57% | $63,704 | 3.70% | $56,390 | 3.21% | |||
| Net Interest Margin (TE) | $69,596 | $7,474,544 | 3.75% | $63,704 | $6,407,504 | 3.96% | $56,390 | $6,472,408 | 3.50% |
| Hancock Holding Company | - Add 11- | ||||||||||
| Quarterly Financial Data | |||||||||||
| (amounts in thousands, except | |||||||||||
| per share data and FTE headcount) | |||||||||||
| (unaudited) | 2008 | 2009 | 2010 | ||||||||
| 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | ||||
| Per Common Share Data | |||||||||||
| Earnings per share: | |||||||||||
| Basic | $0.67 | $0.51 | $0.26 | $0.44 | $0.43 | $0.48 | $0.89 | $0.37 | |||
| Diluted | $0.66 | $0.50 | $0.26 | $0.44 | $0.43 | $0.47 | $0.89 | $0.37 | |||
| Cash dividends per share | $0.24 | $0.24 | $0.24 | $0.24 | $0.24 | $0.24 | $0.24 | $0.24 | |||
| Book value per share (period-end) | $18.27 | $18.95 | $19.18 | $19.66 | $19.82 | $20.54 | $22.74 | $23.05 | |||
| Tangible book value per share (period-end) | $16.06 | $16.77 | $17.02 | $17.51 | $17.68 | $18.42 | $20.60 | $20.94 | |||
| Weighted average number of shares: | |||||||||||
| Basic | 31,382 | 31,471 | 31,757 | 31,805 | 31,820 | 31,857 | 35,481 | 36,868 | |||
| Diluted | 31,814 | 31,905 | 32,059 | 31,937 | 32,009 | 32,058 | 35,705 | 37,105 | |||
| Period-end number of shares | 31,386 | 31,702 | 31,770 | 31,813 | 31,827 | 31,877 | 36,840 | 36,905 | |||
| Market data: | |||||||||||
| High sales price | $45.68 | $68.42 | $56.45 | $45.56 | $41.19 | $42.38 | $44.89 | $45.86 | |||
| Low sales price | $38.38 | $33.34 | $34.20 | $22.51 | $30.12 | $29.90 | $35.26 | $38.23 | |||
| Period end closing price | $39.29 | $51.00 | $45.46 | $31.28 | $32.49 | $37.57 | $43.81 | $41.81 | |||
| Trading volume | 14,527 | 23,562 | 18,544 | 18,026 | 17,040 | 11,676 | 19,538 | 9,612 | |||
| Other Period-end Data | |||||||||||
| FTE headcount | 1,903 | 1,941 | 1,952 | 1,938 | 1,911 | 1,903 | 2,240 | 2,263 | |||
| Tangible common equity | $503,953 | $531,800 | $540,859 | $557,013 | $562,800 | $587,161 | $758,840 | $772,735 | |||
| Tier I capital | $527,479 | $546,379 | $550,216 | $558,502 | $565,807 | $575,856 | $756,106 | $764,074 | |||
| Goodwill | $62,277 | $62,277 | $62,277 | $62,277 | $62,277 | $62,277 | $62,277 | $62,277 | |||
| Amortizable intangibles | $6,762 | $6,402 | $6,059 | $5,705 | $5,350 | $4,996 | $16,252 | $15,521 | |||
| Common shares repurchased for publicly announced plans | -- | -- | 6 | -- | -- | -- | -- | -- | |||
| Performance Ratios | |||||||||||
| Return on average assets | 1.36% | 1.00% | 0.48% | 0.79% | 0.78% | 0.87% | 1.75% | 0.65% | |||
| Return on average common equity | 14.51% | 10.90% | 5.49% | 9.12% | 8.67% | 9.38% | 15.92% | 6.58% | |||
| Earning asset yield (TE) | 6.03% | 6.02% | 5.60% | 5.26% | 5.26% | 5.26% | 5.32% | 5.15% | |||
| Total cost of funds | 2.12% | 2.03% | 2.08% | 1.75% | 1.48% | 1.39% | 1.35% | 1.40% | |||
| Net interest margin (TE) | 3.91% | 3.99% | 3.51% | 3.50% | 3.78% | 3.86% | 3.96% | 3.75% | |||
| Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions | 60.26% | 62.92% | 64.61% | 64.93% | 61.47% | 60.81% | 49.82% | 66.43% | |||
| Common equity (period-end) as a percent of total assets (period-end) | 9.15% | 8.91% | 8.50% | 8.81% | 8.95% | 9.62% | 9.63% | 9.93% | |||
| Leverage (Tier I) ratio | 8.57% | 8.66% | 8.06% | 7.85% | 8.13% | 8.33% | 10.60% | 8.91% | |||
| Tangible common equity ratio | 8.13% | 7.97% | 7.62% | 7.92% | 8.06% | 8.71% | 8.81% | 9.10% | |||
| Net charge-offs as a percent of average loans | 0.27% | 0.42% | 1.20% | 0.67% | 1.50% | 1.24% | 1.24% | 1.06% | |||
| Allowance for loan losses as a percent of period-end loans | 1.41% | 1.40% | 1.45% | 1.49% | 1.49% | 1.50% | 1.29% | 1.33% | |||
| Allowance for loan losses to NPAs + loans 90 days past due | 203.06% | 189.69% | 133.16% | 119.72% | 117.14% | 120.25% | 58.69% | 48.80% | |||
| Loan/deposit ratio | 74.82% | 77.46% | 74.58% | 72.51% | 74.95% | 77.36% | 77.89% | 71.45% | |||
| Noninterest income excluding securities transactions as a percent of total revenue (TE) | 36.52% | 34.46% | 35.73% | 34.00% | 36.65% | 33.31% | 49.86% | 31.08% | |||
| Hancock Holding Company | - Add 12 - | ||||||||||
| Quarterly Financial Data | |||||||||||
| (amounts in thousands, except per share data and FTE headcount) | |||||||||||
| (unaudited) | 2008 | 2009 | 2010 | ||||||||
| 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | ||||
| Asset Quality Information | |||||||||||
| Non-accrual loans | $18,106 | $21,875 | $29,976 | $38,327 | $34,189 | $35,558 | $86,555 | $92,828 | |||
| Foreclosed assets | 1,693 | 2,197 | 5,360 | 5,946 | 8,884 | 9,775 | 14,336 | 30,243 | |||
| Total non-performing assets | $19,799 | $24,072 | $35,336 | $44,273 | $43,073 | $45,333 | $100,891 | $123,071 | |||
| Non-performing assets as a percent of loans and foreclosed assets | 0.52% | 0.59% | 0.83% | 1.04% | 1.01% | 1.06% | 1.97% | 2.44% | |||
| Accruing loans 90 days past due | $6,449 | $6,082 | $11,019 | $8,306 | $11,435 | $7,766 | $11,647 | $13,457 | |||
| Accruing loans 90 days past due as a percent of loans | 0.17% | 0.15% | 0.26% | 0.20% | 0.27% | 0.18% | 0.23% | 0.27% | |||
| Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets | 0.69% | 0.74% | 1.09% | 1.24% | 1.27% | 1.25% | 2.20% | 2.71% | |||
| Net charge-offs | $2,495 | $4,164 | $12,591 | $7,117 | $16,019 | $13,495 | $13,634 | $13,251 | |||
| Net charge-offs as a percent of average loans | 0.27% | 0.42% | 1.20% | 0.67% | 1.50% | 1.24% | 1.24% | 1.06% | |||
| Allowance for loan losses | $53,300 | $57,200 | $61,725 | $62,950 | $63,850 | $63,850 | $66,050 | $66,625 | |||
| Allowance for loan losses as a percent of period-end loans | 1.41% | 1.40% | 1.45% | 1.49% | 1.49% | 1.50% | 1.29% | 1.33% | |||
| Allowance for loan losses to NPAs + accruing loans 90 days past due | 203.06% | 189.69% | 133.16% | 119.72% | 117.14% | 120.25% | 58.69% | 48.80% | |||
| Provision for loan losses | $2,787 | $8,064 | $17,116 | $8,342 | $16,919 | $13,495 | $15,834 | $13,826 | |||
| Net Charge-off Information | |||||||||||
| Net charge-offs: | |||||||||||
| Commercial/real estate loans | $600 | $1,556 | $8,971 | $4,536 | $12,524 | $10,176 | $9,110 | $10,238 | |||
| Mortgage loans | 61 | 179 | 269 | 177 | 199 | 177 | 1,211 | 608 | |||
| Direct consumer loans | 442 | 650 | 1,039 | 599 | 1,226 | 821 | 1,209 | 608 | |||
| Indirect consumer loans | 681 | 867 | 1,337 | 847 | 717 | 1,169 | 883 | 608 | |||
| Finance company loans | 711 | 912 | 975 | 958 | 1,353 | 1,152 | 1,221 | 1,189 | |||
| Total net charge-offs | $2,495 | $4,164 | $12,591 | $7,117 | $16,019 | $13,495 | $13,634 | $13,251 | |||
| Average loans: | |||||||||||
| Commercial/real estate loans | $2,272,057 | $2,453,154 | $2,622,357 | $2,688,557 | $2,696,500 | $2,739,518 | $2,777,866 | $3,145,748 | |||
| Mortgage loans | 413,076 | 427,752 | 432,070 | 445,741 | 452,324 | 438,659 | 470,441 | 735,279 | |||
| Direct consumer loans | 526,752 | 546,079 | 575,826 | 605,685 | 596,725 | 603,394 | 630,511 | 737,728 | |||
| Indirect consumer loans | 386,565 | 410,110 | 439,780 | 430,965 | 420,444 | 410,035 | 386,157 | 359,965 | |||
| Finance Company loans | 113,555 | 116,140 | 117,435 | 114,428 | 111,358 | 110,045 | 110,233 | 109,819 | |||
| Total average loans | $3,712,005 | $3,953,235 | $4,187,468 | $4,285,376 | $4,277,351 | $4,301,651 | $4,375,208 | $5,088,539 | |||
| Net charge-offs to average loans: | |||||||||||
| Commercial/real estate loans | 0.11% | 0.25% | 1.36% | 0.68% | 1.86% | 1.47% | 1.30% | 1.32% | |||
| Mortgage loans | 0.06% | 0.17% | 0.25% | 0.16% | 0.18% | 0.16% | 1.02% | 0.34% | |||
| Direct consumer loans | 0.34% | 0.47% | 0.72% | 0.40% | 0.82% | 0.54% | 0.76% | 0.33% | |||
| Indirect consumer loans | 0.71% | 0.84% | 1.21% | 0.80% | 0.68% | 1.13% | 0.91% | 0.69% | |||
| Finance Company loans | 2.52% | 3.12% | 3.30% | 3.40% | 4.87% | 4.15% | 4.39% | 4.39% | |||
| Total net charge-offs to average loans | 0.27% | 0.42% | 1.20% | 0.67% | 1.50% | 1.24% | 1.24% | 1.06% | |||
| Hancock Holding Company | - Add 13 - | |||||||||||||
| Quarterly Financial Data | ||||||||||||||
| (amounts in thousands, except | ||||||||||||||
| per share data and FTE headcount) | ||||||||||||||
| (unaudited) | 2008 | 2009 | 2010 | |||||||||||
| 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | |||||||
| Income Statement | ||||||||||||||
| Interest income | $81,732 | $84,132 | $84,801 | $81,448 | $80,105 | $79,758 | $82,416 | $92,379 | ||||||
| Interest income (TE) | 84,164 | 86,774 | 87,726 | 84,392 | 83,054 | 82,757 | 85,585 | 95,396 | ||||||
| Interest expense | 29,573 | 29,357 | 32,727 | 28,002 | 23,413 | 22,004 | 21,881 | 25,800 | ||||||
| Net interest income (TE) | 54,591 | 57,417 | 54,999 | 56,390 | 59,641 | 60,753 | 63,704 | 69,596 | ||||||
| Provision for loan losses | 2,787 | 8,064 | 17,116 | 8,342 | 16,919 | 13,495 | 15,834 | 13,826 | ||||||
| Noninterest income excluding securities transactions | 31,412 | 30,194 | 30,578 | 29,055 | 34,504 | 30,347 | 63,353 | 31,381 | ||||||
| Securities transactions gains/(losses) | 426 | (79) | (1,174) | -- | -- | 61 | 7 | -- | ||||||
| Noninterest expense | 52,189 | 55,483 | 55,637 | 55,838 | 58,226 | 55,749 | 63,657 | 67,822 | ||||||
| Income before income taxes | 29,021 | 21,343 | 8,725 | 18,321 | 16,051 | 18,918 | 44,404 | 16,312 | ||||||
| Income tax expense | 8,037 | 5,338 | 405 | 4,290 | 2,305 | 3,700 | 12,624 | 2,478 | ||||||
| Net income | $20,984 | $16,005 | $8,320 | $14,031 | $13,746 | $15,218 | $31,780 | $13,834 | ||||||
| Pre-tax, pre-provision income (PTPP) | $31,382 | $29,486 | $27,015 | $26,663 | $32,970 | $32,352 | $63,914 | $31,587 | ||||||
| Noninterest Income and Noninterest Expense | ||||||||||||||
| Service charges on deposit accounts | $10,879 | $11,108 | $11,467 | $10,503 | $11,242 | $11,795 | $11,814 | $11,490 | ||||||
| Trust fees | 4,575 | 4,330 | 3,777 | 3,327 | 3,855 | 4,008 | 3,937 | 3,846 | ||||||
| Debit card & merchant fees | 2,884 | 2,805 | 2,853 | 2,568 | 2,895 | 2,845 | 2,944 | 3,596 | ||||||
| Insurance fees | 4,259 | 3,819 | 4,136 | 3,452 | 4,048 | 3,526 | 3,329 | 3,511 | ||||||
| Investment & annuity fees | 2,727 | 2,421 | 2,849 | 2,861 | 1,691 | 2,007 | 1,662 | 2,279 | ||||||
| ATM fees | 1,757 | 1,718 | 1,690 | 1,779 | 1,895 | 1,862 | 1,838 | 1,951 | ||||||
| Secondary mortgage market operations | 753 | 817 | 629 | 1,158 | 1,827 | 1,482 | 1,439 | 1,640 | ||||||
| Other income | 3,578 | 3,176 | 3,177 | 3,407 | 7,051 | 2,822 | 2,767 | 3,068 | ||||||
| Noninterest income excluding securities transactions | $31,412 | $30,194 | $30,578 | $29,055 | $34,504 | $30,347 | $63,353 | $31,381 | ||||||
| Securities transactions gains/(losses) | 426 | (79) | (1,174) | -- | -- | 61 | 7 | -- | ||||||
| Total noninterest income including securities transactions | $31,838 | $30,115 | $29,404 | $29,055 | $34,504 | $30,408 | $63,360 | $31,381 | ||||||
| Personnel expense | $27,031 | $28,664 | $28,447 | $30,775 | $28,703 | $29,113 | $32,858 | $34,767 | ||||||
| Occupancy expense (net) | 4,702 | 5,188 | 5,047 | 5,055 | 5,016 | 5,144 | 5,126 | 6,143 | ||||||
| Equipment expense | 2,785 | 2,711 | 2,587 | 2,534 | 2,583 | 2,397 | 2,335 | 2,724 | ||||||
| Other operating expense | 17,307 | 18,560 | 19,213 | 17,120 | 21,570 | 18,741 | 22,984 | 23,450 | ||||||
| Amortization of intangibles | 364 | 360 | 343 | 354 | 354 | 354 | 354 | 738 | ||||||
| Total noninterest expense | $52,189 | $55,483 | $55,637 | $55,838 | $58,226 | $55,749 | $63,657 | $67,822 | ||||||