GULFPORT, Miss., April 21, 2009 (GLOBE NEWSWIRE) -- Hancock Holding Company (Nasdaq:HBHC) today announced net income for the quarter ended March 31, 2009. Hancock's first quarter 2009 net income was $14.0 million, an increase of $5.7 million, or 68.6 percent from the fourth quarter of 2008's net income of $8.3 million. Compared to the first quarter of 2008, net income was down $6.0 million, or 30.0 percent. Diluted earnings per share for the first quarter of 2009 were $0.44, an increase of $0.18 from the fourth quarter of 2008, and a decrease of $0.19 from the same quarter a year ago. Hancock's return on average assets for the first quarter of 2009 was 0.79 percent compared to 0.48 percent for the fourth quarter of 2008 and to 1.30 percent for the first quarter of 2008.
The Company's first quarter results continue to be impacted by the ongoing financial crisis and national economic recession. The Company was once again proactive in recognizing asset quality issues but at a level that represents a significant improvement from the previous quarter. Net charge-offs were down to 0.67 percent of average loans in the first quarter, or 53 basis points lower than the 1.20 percent charged-off in the previous quarter. However, in an effort to continue a proactive stance in recognizing asset quality issues, the Company increased non-accrual loans $8.4 million between year-end 2008 and March 31, 2009. The majority of this increase was concentrated in construction and land development loans and in commercial real estate. Going forward, the Company expects to continue this proactive stance toward recognizing asset quality issues.
Commenting on the Company's first quarter earnings, Hancock Holding Company President and Chief Executive Officer Carl J. Chaney stated, "Hancock's first quarter 2009 results represent a dramatic improvement over the previous quarter; and while we are pleased with the quarter's progress, we will continue to be proactive in recognizing issues but will always hold as our top priority the necessary actions to keep our company safe in these difficult times."
Highlights & Key Operating Items from Hancock's First Quarter Results
Balance Sheet
Total assets at March 31, 2009 were $7.1 billion, down slightly from $7.2 billion at December 31, 2008. Compared to March 31, 2008, total assets increased $0.7 billion, or 10.5 percent. 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 $625.3 million at March 31, 2009, up $47.9 million, or 8.3 percent, from March 31, 2008. Hancock's tangible equity ratio at March 31, 2009, was 7.92 percent, still among the highest in Hancock's peer group and without the aid of government assistance.
Loan Growth
For the quarter ended March 31, 2009, Hancock's average total loans were $4.3 billion, which represented an increase of $646.8 million, or 17.8 percent, from the same quarter a year ago and was up 97.9 million, or 2.3 percent from the fourth quarter of 2008. Period-end loans were down $14.8 million, or 0.35 percent, from last quarter. The majority of the period-end decrease in loans was in indirect consumer loans (down $16.8 million, or 3.8 percent), with smaller decreases recorded in mortgage (down $6.9 million or 1.6 percent) and finance company loans (down $5.7 million or 4.9 percent). These decreases were slightly offset by an increase in direct consumer loans (up $14.2 million or 2.4 percent).
Deposit Growth
Average deposits were up $295.5 million, or 5.3 percent, from the fourth quarter of 2008. The increase in average deposits was reflected mostly in public fund deposits (up $286.1 million) with smaller increases reflected in interest-bearing transaction accounts (up $33.7 million) and noninterest bearing transaction accounts (up $16.2 million). Period-end deposits for the first quarter were $5.8 billion, up $660.4 million, or 12.8 percent, from March 31, 2008, but were down $126.9 million, or 2.1 percent, from December 31, 2008. The decrease in period-end deposits as compared to December 31, 2008, was primarily in time deposits as the Company had $645.0 million of time deposits mature over the course of the quarter with a net retention rate of 65.0 percent.
Asset Quality
Net charge-offs for 2009's first quarter were $7.1 million, or 0.67 percent of average loans, down $5.5 million from the $12.6 million, or 1.20 percent of average loans, reported for the fourth quarter of 2008. Non-performing assets as a percent of total loans and foreclosed assets was 1.04 percent at March 31, 2009, compared to 0.83 percent at December 31, 2008. Non-accrual loans increased $8.4 million while other real estate owned (ORE) increased $0.6 million compared to the prior quarter. Loans 90 days past due or greater (accruing) as a percent of period end loans decreased 6 basis points from December 31, 2008, to 0.20 percent at March 31, 2009.
Hancock recorded a provision for loan losses of $8.3 million in the first quarter which, when combined with the quarter's net charge-offs of $7.1 million, resulted in a $1.2 million increase in the allowance for loan losses between December 31, 2008, and March 31, 2009. This increase was necessary to adjust the allowance to the level dictated by the Company's reserving methodologies. The higher level of the allowance for loan losses was due to an increase in nonperforming loans as a result of the continued weakness in the local and national economies. The Company's allowance for loan losses was $62.9 million at March 31, 2009, compared to $61.7 million reported at December 31, 2008. The ratio of the allowance for loan losses as a percent of period-end loans was 1.49 percent at the end of the first quarter, compared to 1.45 percent reported at December 31, 2008.
Net Interest Income
Net interest income (te) for the first quarter increased $3.5 million, or 6.6 percent, while the net interest margin (te) of 3.50 percent was 30 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 $901.0 million, or 16.2 percent, mostly reflected in higher average loans (up $646.8 million, or 17.8 percent). With short-term interest rates down significantly from the same quarter a year ago, the Company's loan yield fell 125 basis points, pushing the yield on average earning assets down 102 basis points. However, total funding costs over the same quarter a year ago were down 73 basis points.
Compared to the prior quarter, the net interest margin (te) narrowed 1 basis point, but the level of net interest income was up $1.4 million, or 2.5 percent. The Company benefited from a $223.6 million, or 3.6 percent, increase in average earning assets during the first quarter, most of which was in loans and short-term investments. The yield on average earning assets was down 34 basis points as the yields on loans and investment securities fell 30 and 14 basis points, respectively. The loan yield fell primarily due to a full quarter's impact of the previous quarter's 175 basis point reduction in short-term interest rates by the Federal Reserve. Nearly offsetting the reduction in the Company's average earning asset yield was a 33 basis point decline in the total cost of funds. Across the board reductions were reflected in all interest-bearing deposits and liabilities -- the most significant of which were in time deposits (cost down 22 basis points due to $645 million of maturing CDs at 3.64 percent) and public fund deposits (cost down 69 basis points). Going forward, the Company expects continued decreases in funding costs as Hancock re-prices maturing CDs ($275 million at 3.06 percent for the second quarter) and reduce the costs associated with the Company's public fund deposit portfolio.
Non-interest Income
Non-interest income, excluding securities transactions, for the first quarter was down $1.7 million, or 5.6 percent, compared to the same quarter a year ago and was down $1.5 million, or 5.0 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 insurance fees (down $0.9 million, or 20.5 percent), trust fees (down $0.8 million, or 20.3 percent), service charge income (down $0.3 million or 2.7 percent), and other income (down $0.2 million or 6.5 percent), partly offset by secondary mortgage market operations (up $0.4 million or 48.8 percent). The decrease in non-interest income (excluding securities transactions) for the first quarter compared to the prior quarter was primarily due to service charge income (down $1.0 million, or 8.4 percent), insurance fees (down $0.7 million or 16.5 percent), trust fees (down $0.4 million or 11.9 percent) and debit card and merchant fees (down $0.3 million or 10.0 percent), and only partially offset by higher secondary mortgage market operations (up $0.5 million, or 84.1 percent) and other income (up $0.2 million or 7.2 percent).
Operating expense
Operating expenses for the first quarter were $5.7 million, or 11.4 percent, higher compared to the same quarter a year ago, but were only $0.2 million, or 0.4 percent, higher than the previous quarter. The increase from the same quarter a year ago was reflected in higher personnel expense (up $5.1 million or 20.1 percent), occupancy expense (up $0.5 million or 9.9 percent), and other operating expenses (up $0.5 million or 3.0 percent). These increases were partially offset by lower levels of equipment expense (down $0.4 million or 12.9 percent). The increase in operating expense from last quarter was due to personnel expense (up $2.3 million or 8.2 percent) offset by lower other operating expense (down $2.1 million or 10.9 percent.)
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 $7.10 billion. Founded in 1899, Hancock Bank consistently ranks as one of the country's strongest, safest financial institutions according to BauerFinancial Services, Inc., and was named among America's Top 10 Best Banks by Bank Director magazine. Additional 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
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
----------------------------
Three Months Ended
----------------------------
3/31/09 12/31/08 3/31/08
----------------------------
Per Common Share Data
---------------------
Earnings per share:
Basic $0.44 $0.26 $0.64
Diluted $0.44 $0.26 $0.63
Cash dividends per share $0.24 $0.24 $0.24
Book value per share (period-end) $19.66 $19.18 $18.41
Tangible book value per share
(period-end) $17.51 $17.02 $16.17
Weighted average number of shares:
Basic 31,805 31,757 31,346
Diluted 31,937 32,059 31,790
Period-end number of shares 31,813 31,770 31,372
Market data:
High closing price $45.56 $56.45 $44.29
Low closing price $22.51 $34.20 $33.45
Period end closing price $31.28 $45.46 $42.02
Trading volume 18,026 18,544 17,204
Other Period-end Data
---------------------
FTE headcount 1,938 1,952 1,877
Tangible common equity $557,013 $540,859 $507,287
Tier I capital $558,502 $550,216 $512,248
Goodwill $62,277 $62,277 $62,277
Amortizable intangibles $5,705 $6,059 $7,388
Common shares repurchased for publicly
announced plans 0 6 0
Performance Ratios
------------------
Return on average assets 0.79% 0.48% 1.30%
Return on average common equity 9.12% 5.49% 14.13%
Earning asset yield (TE) 5.26% 5.60% 6.28%
Total cost of funds 1.75% 2.08% 2.48%
Net interest margin (TE) 3.50% 3.51% 3.80%
Noninterest expense as a percent of total
revenue (TE) before amortization of
purchased intangibles and securities
transactions 64.93% 64.61% 59.49%
Common equity (period-end) as a percent
of total assets (period-end) 8.81% 8.50% 8.99%
Leverage (Tier I) ratio 7.85% 8.06% 8.34%
Tangible common equity ratio 7.92% 7.62% 7.98%
Net charge-offs as a percent of average
loans 0.67% 1.20% 0.32%
Allowance for loan losses as a percent of
period-end loans 1.49% 1.45% 1.46%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 119.72% 133.16% 265.81%
Loan/deposit ratio 72.51% 74.58% 72.10%
Non-interest income excluding securities
transactions as a percent of total
revenue (TE) 34.00% 35.73% 36.78%
----------------------------
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
--------------------------------
Three Months Ended
--------------------------------
3/31/09 12/31/08 3/31/08
--------------------------------
Asset Quality Information
-------------------------
Non-accrual loans $38,327 $29,976 $12,983
Foreclosed assets 5,946 5,360 3,619
--------------------------------
Total non-performing assets $44,273 $35,336 $16,602
--------------------------------
Non-performing assets as a percent of
loans and foreclosed assets 1.04% 0.83% 0.46%
Accruing loans 90 days past due $8,306 $11,019 $3,340
Accruing loans 90 days past due as a
percent of loans 0.20% 0.26% 0.09%
Non-performing assets + accruing
loans 90 days past due to loans and
foreclosed assets 1.24% 1.09% 0.55%
Net charge-offs $7,117 $12,591 $2,933
Net charge-offs as a percent of
average loans 0.67% 1.20% 0.32%
Allowance for loan losses $62,950 $61,725 $53,008
Allowance for loan losses as a
percent of period-end loans 1.49% 1.45% 1.46%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 119.72% 133.16% 265.81%
Provision for loan losses $8,342 $17,116 $8,818
Allowance for Loan Losses
-------------------------
Beginning Balance $61,725 $57,200 $47,123
Provision for loan loss 8,342 17,116 8,818
Charge-offs 8,277 14,107 4,197
Recoveries 1,160 1,516 1,264
--------------------------------
Net charge-offs 7,117 12,591 2,933
--------------------------------
Ending Balance $62,950 $61,725 $53,008
--------------------------------
Net Charge-off Information
--------------------------
Net charge-offs:
Commercial/real estate loans $4,536 $8,971 $834
Mortgage loans 177 269 --
Direct consumer loans 599 1,039 588
Indirect consumer loans 847 1,337 463
Finance company loans 958 975 1,048
--------------------------------
Total net charge-offs $7,117 $12,591 $2,933
================================
Average loans:
Commercial/real estate loans $2,688,557 $2,622,357 $2,224,695
Mortgage loans 445,741 432,070 399,374
Direct consumer loans 605,685 575,826 514,441
Indirect consumer loans 430,965 439,780 386,985
Finance Company loans 114,428 117,435 113,113
--------------------------------
Total average loans $4,285,376 $4,187,468 $3,638,608
Net charge-offs to average loans:
Commercial/real estate loans 0.68% 1.36% 0.15%
Mortgage loans 0.16% 0.25% 0.00%
Direct consumer loans 0.40% 0.72% 0.46%
Indirect consumer loans 0.80% 1.21% 0.48%
Finance Company loans 3.40% 3.30% 3.73%
--------------------------------
Total net charge-offs to average
loans 0.67% 1.20% 0.32%
--------------------------------
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
--------------------------------
Three Months Ended
--------------------------------
3/31/09 12/31/08 3/31/08
--------------------------------
Income Statement
----------------
Interest income $81,448 $84,801 $84,772
Interest income (TE) 84,392 87,726 87,227
Interest expense 28,002 32,727 34,345
--------------------------------
Net interest income (TE) 56,390 54,999 52,882
Provision for loan losses 8,342 17,116 8,818
Noninterest income excluding
securities transactions 29,055 30,578 30,769
Securities transactions gains/
(losses) 0 (1,174) 5,652
Noninterest expense 55,838 55,637 50,134
--------------------------------
Income before income taxes 18,321 8,725 27,896
Income tax expense 4,290 405 7,839
--------------------------------
Net income $14,031 $8,320 $20,057
================================
Noninterest Income and Noninterest
Expense
----------------------------------
Service charges on deposit accounts $10,503 $11,467 $10,789
Trust fees 3,327 3,777 4,176
Debit card & merchant fees 2,568 2,853 2,540
Insurance fees 3,452 4,136 4,340
Investment & annuity fees 2,861 2,849 2,810
ATM fees 1,779 1,690 1,691
Secondary mortgage market operations 1,158 629 778
Other income 3,407 3,177 3,645
--------------------------------
Noninterest income excluding
securities transactions $29,055 $30,578 $30,769
Securities transactions gains/
(losses) 0 (1,174) 5,652
--------------------------------
Total noninterest income including
securities transactions $29,055 $29,404 $36,421
================================
Personnel expense $30,775 $28,447 $25,631
Occupancy expense (net) 5,055 5,047 4,601
Equipment expense 2,534 2,587 2,909
Other operating expense 17,120 19,213 16,628
Amortization of intangibles 354 343 365
--------------------------------
Total noninterest expense $55,838 $55,637 $50,134
================================
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
--------------------------------
Three Months Ended
--------------------------------
3/31/09 12/31/08 3/31/08
--------------------------------
Period-end Balance Sheet
------------------------
Commercial/real estate loans $2,683,684 $2,683,188 $2,240,823
Mortgage loans 420,798 427,720 393,445
Direct consumer loans 595,470 581,288 506,372
Indirect consumer loans 423,066 439,903 386,614
Finance Company loans 111,651 117,366 111,806
--------------------------------
Total loans 4,234,669 4,249,465 3,639,060
Loans held for sale 27,447 22,115 22,752
Securities 1,715,540 1,681,957 1,757,096
Short-term investments 453,240 549,416 366,809
--------------------------------
Earning assets 6,430,896 6,502,953 5,785,717
--------------------------------
Allowance for loan losses (62,950) (61,725) (53,008)
Other assets 729,538 726,026 692,404
--------------------------------
Total assets $7,097,484 $7,167,254 $6,425,113
================================
Noninterest bearing deposits $954,101 $962,886 $881,380
Interest bearing transaction
deposits 1,513,467 1,443,633 1,431,726
Interest bearing Public Fund
deposits 1,456,286 1,421,070 1,038,119
Time deposits 1,880,152 2,103,348 1,792,360
--------------------------------
Total interest bearing deposits 4,849,905 4,968,051 4,262,205
--------------------------------
Total deposits 5,804,006 5,930,937 5,143,585
Other borrowed funds 562,224 517,257 604,013
Other liabilities 105,911 109,561 100,087
Common shareholders' equity 625,343 609,499 577,428
--------------------------------
Total liabilities & common equity $7,097,484 $7,167,254 $6,425,113
================================
Average Balance Sheet
---------------------
Commercial/real estate loans $2,688,557 $2,622,357 $2,224,695
Mortgage loans 445,741 432,070 399,374
Direct consumer loans 605,685 575,826 514,441
Indirect consumer loans 430,965 439,780 386,985
Finance Company loans 114,428 117,435 113,113
--------------------------------
Total loans 4,285,376 4,187,468 3,638,608
Securities 1,651,251 1,645,603 1,734,997
Short-term investments 537,420 417,370 199,484
--------------------------------
Earning average assets 6,474,047 6,250,441 5,573,089
--------------------------------
Allowance for loan losses (62,332) (58,163) (47,385)
Other assets 772,171 698,751 686,425
--------------------------------
Total assets $7,183,886 $6,891,029 $6,212,129
================================
Noninterest bearing deposits $913,807 $897,561 $858,706
Interest bearing transaction
deposits 1,462,801 1,429,054 1,376,712
Interest bearing Public Fund
deposits 1,499,354 1,213,226 962,170
Time deposits 2,033,925 2,074,559 1,848,825
--------------------------------
Total interest bearing deposits 4,996,080 4,716,839 4,187,707
--------------------------------
Total deposits 5,909,887 5,614,400 5,046,413
Other borrowed funds 536,474 579,328 484,542
Other liabilities 113,286 94,804 110,468
Common shareholders' equity 624,239 602,497 570,706
--------------------------------
Total liabilities & common equity $7,183,886 $6,891,029 $6,212,129
================================
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
--------------------------------
Three Months Ended
--------------------------------
3/31/09 12/31/08 3/31/08
--------------------------------
Average Balance Sheet Mix
-------------------------
Percentage of earning assets/funding
sources:
Loans 66.19% 66.99% 65.29%
Securities 25.51% 26.33% 31.13%
Short-term investments 8.30% 6.68% 3.58%
--------------------------------
Earning average assets 100.00% 100.00% 100.00%
================================
Noninterest bearing deposits 14.11% 14.36% 15.41%
Interest bearing transaction
deposits 22.59% 22.86% 24.71%
Interest bearing Public Fund
deposits 23.16% 19.41% 17.26%
Time deposits 31.42% 33.19% 33.17%
--------------------------------
Total deposits 91.28% 89.82% 90.55%
Other borrowed funds 8.29% 9.27% 8.69%
Other net interest-free funding
sources 0.43% 0.91% 0.76%
--------------------------------
Total average funding sources 100.00% 100.00% 100.00%
================================
Loan mix:
Commercial/real estate loans 62.74% 62.63% 61.13%
Mortgage loans 10.40% 10.32% 10.98%
Direct consumer loans 14.13% 13.75% 14.14%
Indirect consumer loans 10.06% 10.50% 10.64%
Finance Company loans 2.67% 2.80% 3.11%
--------------------------------
Total loans 100.00% 100.00% 100.00%
================================
Average dollars (in thousands):
Loans $4,285,376 $4,187,468 $3,638,608
Securities 1,651,251 1,645,603 1,734,997
Short-term investments 537,420 417,370 199,484
--------------------------------
Earning average assets $6,474,047 $6,250,441 $5,573,089
Noninterest bearing deposits $913,807 $897,561 $858,706
Interest bearing transaction
deposits 1,462,801 1,429,054 1,376,712
Interest bearing Public Fund
deposits 1,499,354 1,213,226 962,170
Time deposits 2,033,925 2,074,559 1,848,825
--------------------------------
Total deposits 5,909,887 5,614,400 5,046,413
Other borrowed funds 536,474 579,328 484,542
Other net interest-free funding
sources 27,686 56,713 42,134
--------------------------------
Total average funding sources $6,474,047 $6,250,441 $5,573,089
Loans:
Commercial/real estate loans $2,688,557 $2,622,357 $2,224,695
Mortgage loans 445,741 432,070 399,374
Direct consumer loans 605,685 575,826 514,441
Indirect consumer loans 430,965 439,780 386,985
Finance Company loans 114,428 117,435 113,113
--------------------------------
Total average loans $4,285,376 $4,187,468 $3,638,608
--------------------------------
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
----------------------------------------------------
Three Months Ended
----------------------------------------------------
03/31/09 12/31/08
----------------------------------------------------
Interest Volume Rate Interest Volume Rate
-------- ---------- ----- -------- ---------- -----
Average Earning
Assets
Commercial &
real estate
loans (TE) $34,463 $2,688,557 5.18% $36,652 $2,622,357 5.57%
Mortgage loans 6,455 445,741 5.79% 6,328 432,070 5.86%
Consumer loans 20,567 1,151,078 7.26% 21,602 1,133,041 7.58%
Loan fees &
late charges 345 -- 0.00% (40) -- 0.00%
-------- ---------- ----- -------- ---------- -----
Total loans
(TE) $61,830 $4,285,376 5.84% $64,542 $4,187,468 6.14%
US treasury
securities 51 11,314 1.82% 53 11,380 1.84%
US agency
securities 2,316 226,002 4.10% 2,882 254,284 4.53%
CMOs 2,308 187,901 4.91% 2,108 167,995 5.02%
Mortgage
backed
securities 13,369 1,045,740 5.11% 13,564 1,024,421 5.30%
Municipals (TE) 2,285 154,266 5.93% 2,178 149,418 5.83%
Other
securities 362 26,028 5.56% 411 38,105 4.31%
-------- ---------- ----- -------- ---------- -----
Total
securities
(TE) 20,691 1,651,251 5.01% 21,196 1,645,603 5.15%
Total short-
term
investments 1,871 537,420 1.41% 1,988 417,370 1.90%
Average
earning
assets
yield (TE) $84,392 $6,474,047 5.26% $87,726 $6,250,441 5.60%
Interest-
bearing
Liabilities
Interest-
bearing
transaction
deposits $2,086 $1,462,801 0.58% $3,333 $1,429,054 0.93%
Time deposits 16,706 2,033,925 3.33% 18,534 2,074,559 3.55%
Public Funds 6,562 1,499,354 1.78% 7,530 1,213,226 2.47%
----------------------------------------------------
Total
interest
bearing
deposits $25,354 4,996,080 2.06% $29,397 4,716,839 2.48%
Total
borrowings 2,648 536,474 2.00% 3,330 579,328 2.29%
Total
interest
bearing
liab cost $28,002 $5,532,554 2.05% $32,727 $5,296,167 2.46%
Noninterest-
bearing
deposits 913,807 897,561
Other net
interest-free
funding
sources 27,686 56,713
Total Cost of
Funds $28,002 $6,474,047 1.75% $32,727 $6,250,441 2.08%
Net Interest
Spread (TE) $56,390 3.21% $54,999 3.14%
Net Interest
Margin (TE) $56,390 $6,474,047 3.50% $54,999 $6,250,441 3.51%
---------------------------------------------------------------------
-------------------------------
Three Months Ended
-------------------------------
03/31/08
-------------------------------
Interest Volume Rate
-------- ---------- -----
Average Earning Assets
Commercial & real estate loans (TE) $36,582 $2,224,695 6.61%
Mortgage loans 5,961 399,374 5.97%
Consumer loans 21,540 1,014,539 8.54%
Loan fees & late charges 116 -- 0.00%
-------- ---------- -----
Total loans (TE) $64,199 3,638,608 7.09%
US treasury securities 117 11,384 4.12%
US agency securities 5,638 477,630 4.72%
CMOs 1,728 143,691 4.81%
Mortgage backed securities 11,025 856,452 5.15%
Municipals (TE) 2,501 193,787 5.16%
Other securities 557 52,053 4.29%
-------- ---------- -----
Total securities (TE) 21,566 1,734,997 4.97%
Total short-term investments 1,462 199,484 2.95%
Average earning assets yield (TE) $87,227 $5,573,089 6.28%
Interest-bearing Liabilities
Interest-bearing transaction deposits $3,952 $1,376,712 1.15%
Time deposits 20,455 1,848,825 4.45%
Public Funds 6,192 962,170 2.59%
-------------------------------
Total interest bearing deposits $30,599 4,187,707 2.94%
Total borrowings 3,746 484,542 3.11%
Total interest bearing liab cost $34,345 $4,672,249 2.96%
Noninterest-bearing deposits 858,706
Other net interest-free funding
sources 42,134
Total Cost of Funds $34,345 $5,573,089 2.48%
Net Interest Spread (TE) $52,882 3.33%
Net Interest Margin (TE) $52,882 $5,573,089 3.80%
---------------------------------------------------------------------
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
--------------------------------
(unaudited) 2007
--------------------------------
2Q 3Q 4Q
--------------------------------
Per Common Share Data
---------------------
Earnings per share:
Basic $0.63 $0.55 $0.53
Diluted $0.62 $0.55 $0.53
Cash dividends per share $0.24 $0.24 $0.24
Book value per share (period-end) $17.13 $17.55 $17.71
Tangible book value per share
(period-end) $14.90 $15.32 $15.45
Weighted average number of shares:
Basic 32,233 32,005 31,097
Diluted 32,749 32,492 31,577
Period-end number of shares 32,094 31,786 31,295
Market data:
High closing price $44.37 $43.90 $43.47
Low closing price $37.50 $32.78 $33.35
Period end closing price $37.55 $40.08 $38.20
Trading volume 11,614 10,290 17,662
Other Period-end Data
---------------------
FTE headcount 1,944 1,966 1,888
Tangible common equity $478,085 $486,871 $483,612
Tier I capital $510,096 $508,554 $497,307
Goodwill $62,277 $62,277 $62,277
Amortizable intangibles $8,607 $8,195 $7,753
Common shares repurchased for
publicly announced plans 433 343 552
Performance Ratios
------------------
Return on average assets 1.42% 1.21% 1.11%
Return on average common equity 14.53% 12.58% 11.69%
Earning asset yield (TE) 6.76% 6.82% 6.73%
Total cost of funds 2.59% 2.76% 2.69%
Net interest margin (TE) 4.17% 4.06% 4.04%
Noninterest expense as a percent of
total revenue (TE) before
amortization of purchased
intangibles and securities
transactions 61.51% 65.45% 67.98%
Common equity (period-end) as a
percent of total assets (period-end) 9.36% 9.45% 9.15%
Leverage (Tier I) ratio 9.01% 8.82% 8.49%
Tangible common equity ratio 8.24% 8.34% 8.08%
Net charge-offs as a percent of
average loans 0.18% 0.21% 0.26%
Allowance for loan losses as a
percent of period-end loans 1.35% 1.31% 1.31%
Allowance for loan losses to NPAs +
loans 90 days past due 410.98% 335.22% 241.43%
Loan/deposit ratio 69.62% 70.28% 72.33%
Noninterest income excluding
securities transactions as a percent
of total revenue (TE) 36.33% 36.83% 37.18%
--------------------------------
--------------------------------------------
2008 2009
--------------------------------------------
1Q 2Q 3Q 4Q 1Q
--------------------------------------------
Per Common Share Data
---------------------
Earnings per share:
Basic $0.64 $0.67 $0.51 $0.26 $0.44
Diluted $0.63 $0.66 $0.50 $0.26 $0.44
Cash dividends per share $0.24 $0.24 $0.24 $0.24 $0.24
Book value per share
(period-end) $18.41 $18.27 $18.95 $19.18 $19.66
Tangible book value per
share (period-end) $16.17 $16.06 $16.77 $17.02 $17.51
Weighted average number
of shares:
Basic 31,346 31,382 31,471 31,757 31,805
Diluted 31,790 31,814 31,905 32,059 31,937
Period-end number of
shares 31,372 31,386 31,702 31,770 31,813
Market data:
High closing price $44.29 $45.68 $68.42 $56.45 $45.56
Low closing price $33.45 $38.38 $33.34 $34.20 $22.51
Period end closing
price $42.02 $39.29 $51.00 $45.46 $31.28
Trading volume 17,204 14,527 23,562 18,544 18,026
Other Period-end Data
---------------------
FTE headcount 1,877 1,903 1,941 1,952 1,938
Tangible common equity $507,287 $503,953 $531,800 $540,859 $557,013
Tier I capital $512,248 $527,479 $546,379 $550,216 $558,502
Goodwill $62,277 $62,277 $62,277 $62,277 $62,277
Amortizable intangibles $7,388 $6,762 $6,402 $6,059 $5,705
Common shares repurchased
for publicly announced
plans 0 0 0 6 0
Performance Ratios
------------------
Return on average assets 1.30% 1.36% 1.00% 0.48% 0.79%
Return on average common
equity 14.13% 14.51% 10.90% 5.49% 9.12%
Earning asset yield (TE) 6.28% 6.03% 6.02% 5.60% 5.26%
Total cost of funds 2.48% 2.12% 2.03% 2.08% 1.75%
Net interest margin (TE) 3.80% 3.91% 3.99% 3.51% 3.50%
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% 64.93%
Common equity
(period-end) as a
percent of total assets
(period-end) 8.99% 9.15% 8.91% 8.50% 8.81%
Leverage (Tier I) ratio 8.34% 8.57% 8.66% 8.06% 7.85%
Tangible common equity
ratio 7.98% 8.13% 7.97% 7.62% 7.92%
Net charge-offs as a
percent of average loans 0.32% 0.27% 0.42% 1.20% 0.67%
Allowance for loan losses
as a percent of
period-end loans 1.46% 1.41% 1.40% 1.45% 1.49%
Allowance for loan losses
to NPAs + loans 90 days
past due 265.81% 203.06% 189.69% 133.16% 119.72%
Loan/deposit ratio 72.10% 74.82% 77.46% 74.58% 72.51%
Noninterest income
excluding securities
transactions as a
percent of total
revenue (TE) 36.78% 36.52% 34.46% 35.73% 34.00%
--------------------------------------------
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
--------------------------------
(unaudited) 2007
--------------------------------
2Q 3Q 4Q
--------------------------------
Asset Quality Information
-------------------------
Non-accrual loans $7,544 $8,500 $13,067
Foreclosed assets 1,146 1,374 2,297
--------------------------------
Total non-performing assets $8,690 $9,874 $15,364
Non-performing assets as a percent
of loans and foreclosed assets 0.25% 0.28% 0.43%
Accruing loans 90 days past due $2,558 $3,819 $4,154
Accruing loans 90 days past due as
a percent of loans 0.07% 0.11% 0.12%
Non-performing assets + accruing
loans 90 days past due to loans and
foreclosed assets 0.33% 0.39% 0.54%
Net charge-offs $1,528 $1,880 $2,368
Net charge-offs as
a percent of average loans 0.18% 0.21% 0.26%
Allowance for loan losses $46,227 $45,901 $47,123
Allowance for loan losses as a
percent of period-end loans 1.35% 1.31% 1.31%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 410.98% 335.22% 241.43%
Provision for loan losses $1,238 $1,554 $3,590
Net Charge-off Information
--------------------------
Net charge-offs:
Commercial/real estate loans ($63) ($58) ($100)
Mortgage loans (22) -- 42
Direct consumer loans 617 864 886
Indirect consumer loans 471 314 518
Finance company loans 525 760 1,024
--------------------------------
Total net charge-offs $1,528 $1,880 $2,370
--------------------------------
Average loans:
Commercial/real estate loans $2,040,088 $2,106,778 $2,175,648
Mortgage loans 382,642 388,603 393,473
Direct consumer loans 487,267 491,417 505,098
Indirect consumer loans 360,451 373,677 385,093
Finance Company loans 101,092 109,807 114,750
--------------------------------
Total average loans $3,371,540 $3,470,282 $3,574,062
Net charge-offs to average loans:
Commercial/real estate loans -0.01% -0.01% -0.02%
Mortgage loans -0.02% 0.00% 0.04%
Direct consumer loans 0.51% 0.70% 0.70%
Indirect consumer loans 0.52% 0.33% 0.53%
Finance Company loans 2.08% 2.74% 3.54%
--------------------------------
Total net charge-offs to average
loans 0.18% 0.21% 0.26%
--------------------------------
------------------------------------------------------
2008 2009
------------------------------------------------------
1Q 2Q 3Q 4Q 1Q
------------------------------------------------------
Asset Quality
Information
-------------
Non-accrual
loans $12,983 $18,106 $21,875 $29,976 $38,327
Foreclosed
assets 3,619 1,693 2,197 5,360 5,946
------------------------------------------------------
Total non-
performing
assets $16,602 $19,799 $24,072 $35,336 $44,273
Non-performing
assets as a
percent of
loans and
foreclosed
assets 0.46% 0.52% 0.59% 0.83% 1.04%
Accruing loans
90 days past
due $3,340 $6,449 $6,082 $11,019 $8,306
Accruing loans
90 days past
due as a
percent of
loans 0.09% 0.17% 0.15% 0.26% 0.20%
Non-performing
assets +
accruing loans
90 days past
due to loans
and foreclosed
assets 0.55% 0.69% 0.74% 1.09% 1.24%
Net charge-offs $2,933 $2,495 $4,164 $12,591 $7,117
Net charge-offs
as a percent
of average
loans 0.32% 0.27% 0.42% 1.20% 0.67%
Allowance for
loan losses $53,008 $53,300 $57,200 $61,725 $62,950
Allowance for
loan losses as
a percent of
period-end
loans 1.46% 1.41% 1.40% 1.45% 1.49%
Allowance for
loan losses to
NPAs +
accruing loans
90 days past
due 265.81% 203.06% 189.69% 133.16% 119.72%
Provision for
loan losses $8,818 $2,787 $8,064 $17,116 $8,342
Net Charge-off
Information
--------------
Net charge-
offs:
Commercial/real
estate loans $834 $600 $1,556 $8,971 $4,536
Mortgage loans -- 61 179 269 177
Direct consumer
loans 588 442 650 1,039 599
Indirect
consumer loans 463 681 867 1,337 847
Finance company
loans 1,048 711 912 975 958
------------------------------------------------------
Total net
charge-offs $2,933 $2,495 $4,164 $12,591 $7,117
------------------------------------------------------
Average loans:
Commercial/real
estate loans $2,224,695 $2,272,057 $2,453,154 $2,622,357 $2,688,557
Mortgage loans 399,374 413,076 427,752 432,070 445,741
Direct consumer
loans 514,441 526,752 546,079 575,826 605,685
Indirect
consumer loans 386,985 386,565 410,110 439,780 430,965
Finance Company
loans 113,113 113,555 116,140 117,435 114,428
------------------------------------------------------
Total average
loans $3,638,608 $3,712,005 $3,953,235 $4,187,468 $4,285,376
Net charge-offs
to average
loans:
Commercial/real
estate loans 0.15% 0.11% 0.25% 1.36% 0.68%
Mortgage loans 0.00% 0.06% 0.17% 0.25% 0.16%
Direct consumer
loans 0.46% 0.34% 0.47% 0.72% 0.40%
Indirect
consumer loans 0.48% 0.71% 0.84% 1.21% 0.80%
Finance Company
loans 3.73% 2.52% 3.12% 3.30% 3.40%
------------------------------------------------------
Total net
charge-offs to
average loans 0.32% 0.27% 0.42% 1.20% 0.67%
------------------------------------------------------
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
-----------------------------
(unaudited) 2007
-----------------------------
2Q 3Q 4Q
-----------------------------
Income Statement
----------------
Interest income $84,895 $87,609 $87,532
Interest income (TE) 87,162 89,982 90,015
Interest expense 33,394 36,467 36,067
-----------------------------
Net interest income (TE) 53,768 53,515 53,948
Provision for loan losses 1,238 1,554 3,590
Noninterest income excluding securities
transactions 30,752 31,198 31,924
Securities transactions gains/(losses) 34 34 234
Noninterest expense 52,374 55,857 58,804
-----------------------------
Income before income taxes 28,675 24,963 21,229
Income tax expense 8,352 7,224 4,628
-----------------------------
Net income $20,323 $17,739 $16,601
=============================
Preferred dividends -- -- --
-----------------------------
Net income to common $19,229 $19,229 $19,229
=============================
Noninterest Income and Noninterest
Expense
----------------------------------
Service charges on deposit accounts $10,472 $11,085 $11,182
Trust fees 4,123 3,892 4,194
Debit card & merchant fees 2,618 2,571 2,646
Insurance fees 5,033 4,270 5,557
Investment & annuity fees 2,017 2,253 2,498
ATM fees 1,427 1,550 1,626
Secondary mortgage market operations 1,116 935 761
Other income 3,946 4,642 3,460
-----------------------------
Noninterest income excluding securities
transactions $30,752 $31,198 $31,924
Securities transactions gains/(losses) 34 34 234
-----------------------------
Total noninterest income including
securities transactions $30,786 $31,232 $32,158
=============================
Personnel expense $24,838 $28,531 $27,026
Occupancy expense (net) 4,469 4,731 6,162
Equipment expense 2,768 2,814 2,610
Other operating expense 19,915 19,369 22,574
Amortization of intangibles 384 412 432
-----------------------------
Total noninterest expense $52,374 $55,857 $58,804
=============================
-------------------------------------------
(unaudited) 2008 2009
-------------------------------------------
1Q 2Q 3Q 4Q 1Q
-------------------------------------------
Income Statement
----------------
Interest income $84,772 $81,732 $84,132 $84,801 $81,448
Interest income (TE) 87,227 84,164 86,774 87,726 84,392
Interest expense 34,345 29,573 29,357 32,727 28,002
-------------------------------------------
Net interest income (TE) 52,882 54,591 57,417 54,999 56,390
Provision for loan losses 8,818 2,787 8,064 17,116 8,342
Noninterest income
excluding securities
transactions 30,769 31,412 30,194 30,578 29,055
Securities transactions
gains/(losses) 5,652 426 (79) (1,174) --
Noninterest expense 50,134 52,189 55,483 55,637 55,838
-------------------------------------------
Income before income taxes 27,896 29,021 21,343 8,725 18,321
Income tax expense 7,839 8,037 5,338 405 4,290
-------------------------------------------
Net income $20,057 $20,984 $16,005 $8,320 $14,031
===========================================
Preferred dividends -- -- -- -- --
-------------------------------------------
Net income to common $19,229 $19,229 $19,229 $19,229 $17,449
===========================================
Noninterest Income
and Noninterest Expense
-------------------------
Service charges on
deposit accounts $10,789 $10,879 $11,108 $11,467 $10,503
Trust fees 4,176 4,575 4,330 3,777 3,327
Debit card & merchant fees 2,540 2,884 2,805 2,853 2,568
Insurance fees 4,340 4,259 3,819 4,136 3,452
Investment & annuity fees 2,810 2,727 2,421 2,849 2,861
ATM fees 1,691 1,757 1,718 1,690 1,779
Secondary mortgage market
operations 778 753 817 629 1,158
Other income 3,645 3,578 3,176 3,177 3,407
-------------------------------------------
Noninterest income
excluding securities
transactions $30,769 $31,412 $30,194 $30,578 $29,055
Securities transactions
gains/(losses) 5,652 426 (79) (1,174) --
-------------------------------------------
Total noninterest income
including securities
transactions $36,421 $31,838 $30,115 $29,404 $29,055
===========================================
Personnel expense $25,631 $27,031 $28,664 $28,447 $30,775
Occupancy expense (net) 4,601 4,702 5,188 5,047 5,055
Equipment expense 2,909 2,785 2,711 2,587 2,534
Other operating expense 16,628 17,307 18,560 19,213 17,120
Amortization of
intangibles 365 364 360 343 354
-------------------------------------------
Total noninterest expense $50,134 $52,189 $55,483 $55,637 $55,838
===========================================