Mississippi 0-13089 64-0169065
- ------------------------- -------------------- -----------------------------
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification Number)
incorporation)
One Hancock Plaza, 2510 14th Street,
Gulfport, Mississippi 39501
------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
(228) 868-4000
------------------------------------------------------------------
(Registrant's telephone number, including area code)
(c) Exhibits.
99.1 Press Release issued by Hancock Holding Company
dated April 10, 2003, headed "Hancock Holding
Company reports first quarter 2003 earnings - up
20 percent."
Item 9. Regulation FD Disclosure. On April 10, 2003, Hancock Holding Company announced by press release its earnings for
the first quarter ended March 31, 2003. A copy of this press release is attached hereto as Exhibit 99.1.
Item 12. Results of Opeations and Financial Condition. On April 10, 2003, Hancock Holding Company announced by press
release its earnings for the first quarter ended March 31, 2003. A copy of this press release is attached hereto as Exhibit 99.1.
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: April 14, 2003
HANCOCK HOLDING COMPANY
(Registrant)
By: /s/ Carl J. Chaney
--------------------------------
Carl J. Chaney
Chief Financial Officer
Exhibit 99.1 to Hancock Holding Company Form 8-K
For Immediate Release For More Information
April 10, 2003 George A. Schloegel, Chief Executive Officer
Carl J. Chaney, Chief Financial Officer
800.522.6542 or 228.868.4727
Hancock Holding Company reports first quarter 2003 earnings - up 20 percent
GULFPORT, MS (April 10, 2003) - Hancock Holding Company (NASDAQ: HBHC) today announced earnings for the
quarter ended March 31, 2003. Net income for the first quarter of 2003 was $13.66 million, an increase of $2.24
million, or 20 percent, over net income of $11.42 million reported for the first quarter of 2002. Diluted
earnings per share were $0.82 for the first quarter of 2003, compared to $0.67 for the first quarter of 2002.
The Company's returns on average assets and average common stockholders' equity for the first quarter of
2003 were 1.37 percent and 14.08 percent, respectively, compared with 1.23 percent and 12.25 percent,
respectively, for the first quarter of 2002. Annualized returns on average assets and average common
stockholders' equity for the fourth quarter of 2002 were 1.39 percent and 13.87 percent, respectively.
Loans were $2.121 billion at March 31, 2003, compared to $1.880 billion at March 31, 2002, an increase of
$241 million, or 12.8 percent. Deposits were $3.459 billion at March 31, 2003, compared to $3.162 billion at
March 31, 2002, an increase of $297 million, or 9.4 percent. Total assets were $4.153 billion at March 31, 2003,
an 8.6 percent increase from $3.825 billion reported at March 31, 2002.
Common stockholders' equity increased 5.4 percent to $393 million at March 31, 2003, from $373 million at
March 31, 2002. Book value per share increased $2.00, or 8.5 percent, to $25.45 at March 31, 2003 from $23.45 at
March 31, 2002.
In commenting on Hancock's operating results for the first quarter of 2003, George A. Schloegel, Chief
Executive Officer, stated, "Given the challenges of the continued softness in the economy, our first- quarter
earnings reflect our ongoing efforts to expand our market share while enhancing
asset quality."
Net Interest Income
Net interest income (te) for the first quarter of 2003 decreased $.278 million, or 0.7 percent, from the
first quarter of 2002, and was $1.9 million, or 4.5 percent lower than the fourth quarter of 2002. The company's
net interest margin (te) was 4.34 percent in the first quarter of 2003, 34 basis points lower than the same
quarter a year ago, and 31 basis points lower than the previous quarter.
Compared to the same quarter a year ago, the primary driver of the decreased level of net interest income
(te) was the 34 basis point narrowing of the Company's net interest margin (te). The net interest margin
narrowed as the overall yield on loans and securities fell more rapidly (90 basis points) than the Company's
ability to reduce total funding costs (56 basis points). Somewhat mitigating the narrowing of the net interest
margin was $211 million of average loan growth from first quarter 2002 to first quarter 2003, which was funded by
$256 million of average deposit growth for the same period.
- more -
The lower level of net interest income (te) and net interest margin (te) compression compared to the
previous quarter was due to a larger reduction in the yield on loans and securities (45 basis points) than the
reduction in funding costs (15 basis points). Another factor impacting the levels of net interest income (te)
and net interest margin (te) as compared to the previous quarter was average deposit growth of $145 million. As
loan growth slowed to $36 million in the current quarter, a greater percentage of the aforementioned deposit
growth was invested in the securities portfolio at historically low yields. The Company is focused on efforts to
further reduce deposit costs, resume loan growth at levels consistent with previous quarters, and slow the
overall reductions in the yield on the securities portfolio.
Non-Interest Income and Expense
Non-interest income for the first quarter of 2003 was up $.404 million, or 2.3 percent, compared to the same
quarter a year ago, but was down $1.2 million, or 6.4 percent, compared to the previous quarter. The first
quarter 2003 levels did include a pretax net securities gain of $.455 million related to the sale of $65 million
of floating rate securities. These securities were reinvested at a yield advantage of approximately 187 basis
points.
Other factors impacting the lower levels of non-interest income as compared to the prior quarter were lower
service charges on deposit accounts (down $.996 million) and other income (down $.589 million). Service charges
on deposit accounts are seasonally lower in the first quarter of each year and return to more normalized levels
in the second quarter. Other income was impacted by approximately $.7 million of income booked in the fourth
quarter relating to the consolidation of income associated with oil & gas royalties, timber properties, and a 79
percent owned insurance subsidiary, Harrison Life Insurance Company.
Operating expenses for the first quarter of 2003 were $.605 million, or 1.8 percent lower, compared to the
same quarter a year ago and was $2.447 million, or 6.9 percent, lower than the previous quarter. The vast
majority of these decreases was reflected in other operating expenses and was spread over a wide range of
operating expense categories. Continuation of focused expense control efforts was the primary reason for the
operating expense reductions from the same quarter a year ago and from the previous quarter.
Primarily due to the aforementioned operating reductions from the first quarter of 2002 and from the
previous quarter, the Company's efficiency ratio (expressed as non-interest income as a percent of total revenue
before securities transactions and amortization of purchased intangibles) was reduced to 57.33 percent in the
first quarter of 2003. This was compared to 58.03 percent for the same quarter a year ago, and 57.97 percent for
the previous quarter.
Asset Quality
Non-performing assets as a percent of total loans and foreclosed assets were 0.81 percent at March 31, 2003,
compared to 0.84 percent at December 31, 2002. Non-performing assets decreased $.6 million from December 31,
2002 and were reflected in lower levels of foreclosed assets, while non-accrual loans were essentially flat.
Compared to the first quarter of 2002, non-performing assets as a percent of total loans and foreclosed assets
were down 24 basis points, or $2.7 million. The overall decrease in the level of non-performing assets from
March 31, 2002 was reflected in consistent decreases in non-performing assets over the course of the subsequent
four quarters as the Company focused efforts on reducing the overall level of non-performing assets. The
Company's ratio of accruing loans 90 days or more past due to total loans was 0.28 percent at March 31, 2003,
compared to 0.30 percent at December 31, 2002 and .36 percent at March 31, 2002.
- more -
The Company's allowance for loan losses was $34.7 million at March 31, 2003 and was unchanged from December
31, 2002, but was increased $3.2 million from March 31, 2002. The ratio of the allowance for loan losses as a
percent of period-end loans was 1.64 percent at March 31, 2003, compared to 1.65 percent at December 31, 2002.
The increase in the allowance for loan losses from March 31, 2002 was a function of the $241 million of loan
growth experienced between March 31, 2002 and March 31, 2003. While the Company maintains a cautious outlook
regarding overall uncertainty about economic conditions, the level of the allowance for loan losses is maintained
at a level that reflects this uncertainty but also considers changes in the mix and size of the Company's loan
portfolio.
Annualized net charge-offs as a percent of average loans for the first quarter of 2003 was 0.59 percent,
compared to 0.63 percent for the fourth quarter of 2002. Net charge-offs were decreased $.246 million from
fourth quarter 2002 to first quarter 2003 and were reflected primarily in lower levels of charge-offs in
commercial loans and finance company loans. Compared to the first quarter of 2002, net charge-offs were reduced
$4.7 million, or 108 basis points (expressed as a percent of average loans). As with the improvement in
non-performing assets, the Company has recorded consistently better performance in net charge-offs over the past
four quarters. The provision for loan losses in the first quarter of 2003 was $3.0 million, or 100 percent of
the quarter's net charge-offs. This compares to the $4.7 million provision for loan losses for the fourth
quarter of 2002, or approximately 144 percent of that quarter's net charge-offs.
General
On February 22, 2003, the Company completed the acquisition of two Dryades Savings Bank branches located in
Metairie, LA and Kenner, LA (both suburbs of New Orleans). The two acquired facilities have a combined total
deposit base of approximately $40 million. As a result of this acquisition, the Company reported a net increase
of two full-service banking facilities, from 102 offices at December 31, 2002 to 104 facilities at March 31,
2003.
Hancock Holding Company subscribes to the highest standards of corporate responsibility with respect to
legal, moral, and regulatory relationships with shareholders, customers, employees, and communities Hancock
serves. Accordingly, these unwavering business principles support a corporate culture of ethical compliance and
accountability that ensures that financial statements are prepared and audited in accordance with Generally
Accepted Accounting Principles (GAAP). The Company's systems of internal controls and risk management processes
are in place and fully functional.
Hancock Holding Company - parent company of Hancock Bank (Mississippi) and Hancock Bank of Louisiana - has
assets of $4.153 billion. Founded in 1899, Hancock Bank stands among the strongest, safest five-star financial
institutions in America. Hancock Bank operates 104 full-service offices and over 141 automated teller machines
throughout South Mississippi and Louisiana as well as subsidiaries Hancock Investment Services, Inc., Hancock
Insurance Agency, Hancock Mortgage Corporation, and Harrison Finance Company. Investors can access additional
corporate information or on-line banking and bill pay services 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.
- more -
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
------------------------------------------
3/31/2003 12/31/2002 3/31/2002
------------------------------------------
Per Common Share Data*
Earnings per share:
Basic $0.84 $0.84 $0.68
Diluted $0.82 $0.82 $0.67
Earnings per share before amortization of
purchased intangibles:
Basic $0.85 $0.86 $0.69
Diluted $0.83 $0.83 $0.68
Cash dividends per share $0.21 $0.20 $0.20
Book value per share (period end) $25.45 $25.09 $23.45
Weighted average number of shares:
Basic 15,442 15,487 15,892
Diluted 16,756 16,822 17,103
Period end number of shares 15,435 15,443 15,892
Market data:
High closing price $46.94 $50.37 $36.17
Low closing price $42.80 $42.00 $27.56
Period end closing price $43.06 $44.65 $35.80
Trading volume 1,418 2,353 1,117
Performance Ratios
Return on average assets 1.37% 1.39% 1.23%
Return on average common equity 14.08% 13.87% 12.25%
Earning asset yield (TE) 6.05% 6.50% 6.95%
Total cost of funds 1.71% 1.86% 2.27%
Net interest margin (TE) 4.34% 4.65% 4.68%
Non-interest expense as a percent of total revenue (TE)
before amortization of purchased intangibles
and securities transactions 57.33% 57.97% 58.03%
Average common equity as a percent of average total assets 9.73% 10.05% 10.05%
Leverage ratio 9.21% 9.35% 8.44%
Tangible common equity to assets 8.14% 8.45% 8.40%
Net charge-offs as a percent of average loans 0.59% 0.63% 1.67%
Reserve for loan losses as a percent of period end loans 1.64% 1.65% 1.68%
Reserve for loan losses to NPAs + accruing loans 90 days past due 149.63% 143.48% 118.55%
Provision for loan losses to net charge-offs 100.00% 143.64% 68.65%
*Note: Share and per share data give effect to the 3 - for - 2 stock split effective August 5, 2002.
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
-------------------------------------------
3/31/2003 12/31/2002 3/31/2002
-------------------------------------------
Asset Quality Information
Non-accrual loans $11,949 $11,870 $14,119
Foreclosed assets $5,230 $5,936 $5,718
Total nonperforming assets $17,179 $17,806 $19,837
Nonperforming assets as a percent of loans and foreclosed assets 0.81% 0.84% 1.05%
Accruing Loans 90 days past due $6,039 $6,407 $6,805
Accruing Loans 90 days past due as a percent of loans 0.28% 0.30% 0.36%
Nonperforming assets + accruing loans 90 days past due
to loans and foreclosed assets 1.09% 1.15% 1.41%
Net charge-offs $3,020 $3,266 $7,762
Net charge-offs as a percent of average loans 0.59% 0.63% 1.67%
Reserve for loan losses $34,740 $34,740 $31,585
Reserve for loan losses as a percent of period end loans 1.64% 1.65% 1.68%
Reserve for loan losses to NPAs + accruing loans 90 days past due 149.63% 143.48% 118.55%
Provision for loan losses $3,020 $4,691 $5,329
Provision for loan losses to net charge-offs 100.00% 143.64% 68.65%
Reserve for Loan Losses
Beginning Balance 34,740 33,315 34,018
Provision for loan loss 3,020 4,691 5,329
Charge-offs 4,771 4,667 9,200
Recoveries 1,751 1,401 1,438
-------------------------------------------
Net charge-offs 3,020 3,266 7,762
-------------------------------------------
Ending Balance 34,740 34,740 31,585
-------------------------------------------
Net Charge-Off Information
Net charge-offs:
Commercial/real estate loans $741 $920 $5,295
Mortgage loans 35 32 1
Direct consumer loans 1,281 1,370 1,399
Indirect consumer loans 558 428 652
Finance company loans 405 516 415
-------------------------------------------
Total net charge-offs $3,020 $3,266 $7,762
Average loans:
Commercial/real estate loans $1,061,644 $1,044,411 $948,905
Mortgage loans 294,611 279,397 222,235
Direct consumer loans 498,822 500,241 510,982
Indirect consumer loans 190,648 187,303 162,422
Finance Company loans 47,484 46,107 38,071
-------------------------------------------
Total average loans $2,093,209 $2,057,459 $1,882,615
Net charge-offs to average loans:
Commercial/real estate loans 0.28% 0.35% 2.26%
Mortgage loans 0.05% 0.05% 0.00%
Direct consumer loans 1.04% 1.09% 1.11%
Indirect consumer loans 1.19% 0.91% 1.63%
Finance Company loans 3.46% 4.44% 4.42%
-------------------------------------------
Total net charge-offs to average loans 0.59% 0.63% 1.67%
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
-------------------------------------
3/31/2003 12/31/2002 3/31/2002
-------------------------------------
Income Statement
Interest income $53,616 $56,702 $57,605
Interest income (TE) 55,479 58,557 59,496
Interest expense 15,581 16,762 19,320
-------------------------------------
Net interest income (TE) 39,898 41,795 40,176
Provision for loan losses 3,020 4,691 5,329
Non-interest income excluding securities transactions 17,339 19,012 17,390
Securities transactions gain/(loss) 455 (1) (0)
Non-interest expense 32,991 35,438 33,596
-------------------------------------
Income before income taxes 19,818 18,823 16,750
Income tax expense 6,156 5,073 5,329
-------------------------------------
Net income 13,663 13,750 11,421
Preferred dividends 663 663 663
-------------------------------------
Net income to common $12,999 $13,086 $10,758
-------------------------------------
-------------------------------------
Non-interest Income and Operating Expense
Service charges on deposit accounts $10,155 $11,151 $9,448
Trust fees 1,940 1,903 2,086
Credit card merchant discount fees 801 851 754
Insurance fees 516 559 514
Investment & annuity fees 931 855 1,778
ATM fees 966 938 861
Secondary mortgage market operations 640 775 679
Other income 1,390 1,979 1,270
Securities transactions gain/(losses) 455 (1) 0
-------------------------------------
Total non-interest income 17,794 19,011 17,390
Personnel expense 20,171 18,728 19,066
Occupancy expense (net) 2,117 2,204 2,037
Equipment expense 2,086 2,483 1,888
Other operating expense 8,438 11,835 10,417
Amortization of intangibles 178 188 188
-------------------------------------
Total non-interest expense 32,991 35,438 33,596
-------------------------------------
FTE Headcount 1,746 1,790 1,731
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
-----------------------------------------
3/31/2003 12/31/2002 3/31/2002
-----------------------------------------
Period end Balance Sheet
Commercial/real estate loans $1,073,526 $1,066,293 $950,083
Mortgage loans 314,048 298,917 226,025
Direct consumer loans 495,388 503,096 499,392
Indirect consumer loans 190,719 189,285 165,892
Finance Company loans 47,657 47,391 38,328
-----------------------------------------
Total loans 2,121,338 2,104,982 1,879,720
Securities 1,661,626 1,486,810 1,449,712
Short-term investments 40,371 47,257 197,626
-----------------------------------------
Earning assets 3,823,335 3,639,049 3,527,058
-----------------------------------------
Reserve for loan losses (34,740) (34,740) (31,585)
Other assets 364,592 368,838 329,299
-----------------------------------------
Total assets $4,153,186 $3,973,147 $3,824,773
-----------------------------------------
-----------------------------------------
Non-interest bearing deposits $611,901 $630,790 $629,844
Interest bearing transaction deposits 1,700,917 1,541,472 1,427,412
Time deposits 1,146,078 1,129,239 1,104,673
Total interest bearing deposits 2,846,995 2,670,710 2,532,085
-----------------------------------------
Total deposits 3,458,895 3,301,500 3,161,929
Other borrowed funds 226,931 215,242 225,513
Other liabilities 37,526 31,823 27,581
Preferred stock 37,069 37,069 37,069
Common shareholders' equity 392,765 387,513 372,682
-----------------------------------------
Total liabilities, preferred stock & common equity $4,153,186 $3,973,147 $3,824,773
-----------------------------------------
-----------------------------------------
Average Balance Sheet
Commercial/real estate loans $1,061,644 $1,044,411 $948,905
Mortgage loans 294,611 279,397 222,235
Direct consumer loans 498,822 500,241 510,982
Indirect consumer loans 190,648 187,303 162,422
Finance Company loans 47,484 46,107 38,071
-----------------------------------------
Total loans 2,093,209 2,057,459 1,882,615
Securities 1,466,360 1,474,645 1,433,234
Short-term investments 140,805 52,090 137,362
-----------------------------------------
Earning assets 3,700,374 3,584,194 3,453,211
-----------------------------------------
Reserve for loan losses (34,740) (33,843) (34,282)
Other assets 379,632 362,800 343,007
-----------------------------------------
Total assets $4,045,265 $3,913,151 $3,761,936
-----------------------------------------
-----------------------------------------
Non-interest bearing deposits $582,992 $557,213 $609,041
Interest bearing transaction deposits 1,651,450 1,514,273 1,379,692
Time deposits 1,122,536 1,140,273 1,112,291
Total interest bearing deposits 2,773,986 2,654,546 2,491,983
-----------------------------------------
Total deposits 3,356,978 3,211,759 3,101,024
Other borrowed funds 223,895 237,715 220,314
Other liabilities 33,726 33,352 25,328
Preferred stock 37,069 37,069 37,069
Common shareholders' equity 393,597 393,256 378,201
-----------------------------------------
Total liabilities, preferred stock & common equity $4,045,265 $3,913,151 $3,761,936
-----------------------------------------
-----------------------------------------
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
------------------------------------------
3/31/2003 12/31/2002 3/31/2002
------------------------------------------
Average Balance Sheet Mix
Percentage of earning assets/funding sources:
Loans 56.57% 57.40% 54.52%
Securities 39.63% 41.14% 41.50%
Short-term investments 3.81% 1.45% 3.98%
------------------------------------------
Earning assets 100.00% 100.00% 100.00%
------------------------------------------
------------------------------------------
Non-interest bearing deposits 15.75% 15.55% 17.64%
Interest bearing transaction deposits 44.63% 42.25% 39.95%
Time deposits 30.34% 31.81% 32.21%
------------------------------------------
Total deposits 90.72% 89.61% 89.80%
Other borrowed funds 6.05% 6.63% 6.38%
Other net interest-free funding sources 3.23% 3.76% 3.82%
------------------------------------------
Total funding sources 100.00% 100.00% 100.00%
------------------------------------------
------------------------------------------
Loan mix:
Commercial/real estate loans 50.72% 50.76% 50.40%
Mortgage loans 14.07% 13.58% 11.80%
Direct consumer loans 23.83% 24.31% 27.14%
Indirect consumer loans 9.11% 9.10% 8.63%
Finance Company loans 2.27% 2.24% 2.02%
------------------------------------------
Total loans 100.00% 100.00% 100.00%
------------------------------------------
------------------------------------------
Average dollars (in thousands):
Loans 2,093,209 2,057,459 $1,882,615
Securities 1,466,360 1,474,645 1,433,234
Short-term investments 140,805 52,090 137,362
------------------------------------------
Earning assets 3,700,374 3,584,194 $3,453,211
Non-interest bearing deposits $582,992 $557,213 $609,041
Interest bearing transaction deposits 1,651,450 1,514,273 1,379,692
Time deposits 1,122,536 1,140,273 1,112,291
------------------------------------------
Total deposits 3,356,978 3,211,759 3,101,024
Other borrowed funds 223,895 237,715 220,314
Other net interest-free funding sources 119,501 134,720 131,873
------------------------------------------
Total funding sources $3,700,374 $3,584,194 $3,453,211
Loans:
Commercial/real estate loans $1,061,644 $1,044,411 $948,905
Mortgage loans 294,611 279,397 222,235
Direct consumer loans 498,822 500,241 510,982
Indirect consumer loans 190,648 187,303 162,422
Finance Company loans 47,484 46,107 38,071
------------------------------------------
Total average loans $2,093,209 $2,057,459 $1,882,615
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
------------------------------------------------------------------------------------------------
03/31/03 12/31/02 03/31/02
------------------------------------------------------------------------------------------------
Interest Volume Rate Interest Volume Rate Interest Volume Rate
----------- ---------- ---- -------- ----------- ----- -------- ---------- ------
Average Earning Assets
Commercial &
real estate loans (TE) $16,188 $1,061,644 6.18% $16,948 $1,044,411 6.44% $16,314 $948,905 6.97%
Mortgage loans 4,723 294,611 6.41% 4,731 279,397 6.77% 4,106 222,235 7.39%
Consumer loans 15,691 736,954 8.64% 15,941 733,651 8.62% 16,628 711,476 9.48%
Loan fees & late charges 2,381 - 0.00% 2,684 - 0.00% 2,284 - 0.00%
----------- ---------- ---- -------- ----------- ----- -------- ---------- ------
Total loans (TE) 38,983 2,093,209 7.54% 40,303 2,057,459 7.78% 39,331 1,882,615 8.46%
US treasury securities 412 50,265 3.33% 416 50,323 3.28% 353 42,358 3.38%
US agency securities 5,706 522,735 4.37% 5,891 523,963 4.50% 6,406 492,033 5.21%
CMOs 4,419 544,997 3.24% 6,276 568,638 4.41% 6,448 518,689 4.97%
Mortgage backed securities 1,474 109,890 5.37% 1,203 84,533 5.69% 1,634 110,229 5.93%
Municipals (TE) 3,740 206,975 7.23% 3,831 214,063 7.16% 4,129 230,562 7.16%
Other securities 336 31,498 4.33% 440 33,125 5.27% 599 39,362 6.17%
----------- ---------- ---- -------- ----------- ----- -------- ---------- ------
Total securities (TE) 16,987 1,466,360 4.39% 18,057 1,474,645 4.90% 19,569 1,433,234 5.47%
Fed funds sold 330 113,667 1.18% 145 38,340 1.50% 299 74,701 1.62%
Cds with banks 13 5,204 1.04% 13 4,461 1.13% 75 9,267 3.30%
Other short-term investments 65 21,935 1.21% 39 9,288 1.65% 222 53,394 1.69%
----------- ---------- ---- -------- ----------- ----- -------- ---------- ------
Total short-term investments 408 140,805 1.18% 196 52,090 1.49% 596 137,362 1.76%
Average earning
assets yield (TE) $55,479 $3,700,374 6.05% $58,557 $3,584,194 6.50% $59,496 $3,453,211 6.95%
Interest-Bearing Liabilities
Interest-bearing transaction $5,118 $1,651,450 1.26% $5,557 $1,514,273 1.46% $6,283 $1,379,692 1.85%
deposits
Time deposits 9,499 1,122,536 3.43% 10,054 1,140,273 3.51% 11,903 1,112,291 4.33%
----------- ---------- ---- -------- ----------- ----- -------- ---------- ------
Total interest
bearing deposits 14,618 2,773,986 2.14% 15,612 2,654,546 2.33% 18,186 2,491,983 2.96%
Customer repos 369 171,072 0.87% 539 182,739 1.17% 536 166,538 1.31%
Other borrowings 594 52,823 4.56% 611 54,976 4.41% 598 53,777 4.51%
----------- ---------- ---- -------- ----------- ----- -------- ---------- ------
Total borrowings 963 223,895 1.74% 1,151 237,715 1.92% 1,135 220,314 2.09%
Total interest
bearing liab cost $15,581 $2,997,881 2.11% $16,762 $2,892,261 2.30% $19,320 $2,712,297 2.89%
Noninterest-bearing deposits 582,992 557,213 609,041
Other net interest-free
funding sources 119,501 134,720 131,873
Total Cost of Funds $15,581 $3,700,374 1.71% $16,762 $3,584,194 1.86% $19,320 $3,453,211 2.27%
Net Interest Spread (TE) $39,898 3.94% $41,795 4.20% $40,176 4.06%
Net Interest Margin (TE) $39,898 $3,700,374 4.34% $41,795 $3,584,194 4.65% $40,176 $3,453,211 4.68%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except per share data)
(unaudited)
2001 2002 2003
--------------------------------------------------------------------------------------
2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
--------------------------------------------------------------------------------------
Per Common Share Data*
Earnings per share:
Basic $0.55 $0.57 $0.71 $0.68 $0.75 $0.80 $0.84 $0.84
Diluted $0.55 $0.57 $0.70 $0.67 $0.73 $0.78 $0.82 $0.82
Earnings per share before amortization of
purchased intangibles:
Basic $0.61 $0.64 $0.79 $0.69 $0.76 $0.82 $0.86 $0.85
Diluted $0.61 $0.64 $0.78 $0.68 $0.74 $0.79 $0.83 $0.83
Cash dividends per share $0.19 $0.19 $0.19 $0.20 $0.20 $0.20 $0.20 $0.21
Book value per share (period end) $22.18 $23.26 $23.13 $23.45 $24.65 $25.15 $25.09 $25.45
Weighted average number of shares:
Basic
16,086 16,061 15,932 15,892 15,869 15,709 15,487 15,442
Diluted 16,121 17,214 17,090 17,103 17,156 17,047 16,822 16,756
Period end number of shares 16,076 15,982 15,893 15,892 15,798 15,517 15,443 15,435
Market data:
High closing price $28.63 $29.33 $29.97 $36.17 $45.13 $49.73 $50.37 $46.94
Low closing price $24.74 $25.99 $25.21 $27.56 $35.17 $39.33 $42.00 $42.80
Period end closing price $28.63 $27.05 $28.69 $35.80 $44.92 $46.97 $44.65 $43.06
Trading volume 710 1,042 872 1,117 2,246 3,690 2,353 1,418
Performance Ratios
Return on average assets 1.11% 1.06% 1.30% 1.23% 1.30% 1.36% 1.39% 1.37%
Return on average common equity 10.16% 10.60% 12.74% 12.25% 13.04% 13.30% 13.87% 14.08%
Earning asset yield (TE) 7.87% 7.64% 7.36% 6.95% 6.73% 6.77% 6.50% 6.05%
Total cost of funds 3.45% 3.27% 2.63% 2.27% 2.06% 1.97% 1.86% 1.71%
Net interest margin (TE) 4.42% 4.38% 4.72% 4.68% 4.66% 4.80% 4.65% 4.34%
Non-interest expense as a percent
of total revenue (TE) before
amortization of purchased intangibles
and securities transactions 60.65% 61.49% 57.81% 58.03% 57.34% 57.97% 57.97% 57.33%
Average common equity as
a percent of average total assets 10.96% 9.98% 10.20% 10.05% 9.97% 10.24% 10.05% 9.73%
Leverage ratio 9.68% 8.42% 9.49% 8.44% 9.35% 9.30% 9.35% 9.21%
Tangible common equity to assets 9.86% 8.97% 8.61% 8.40% 8.73% 8.53% 8.45% 8.14%
Net charge-offs as a
percent of average loans 0.48% 0.65% 0.94% 1.67% 0.88% 0.51% 0.63% 0.59%
Reserve for loan losses as
a percent of period end loans 1.69% 1.90% 1.82% 1.68% 1.65% 1.65% 1.65% 1.64%
Reserve for loan losses to
NPAs + loans 90 days past due 136.74% 133.67% 104.54% 118.55% 122.93% 134.42% 143.48% 149.63%
Provision for loan losses to net 100.00% 67.06% 66.37% 68.65% 116.21% 141.23% 143.64% 100.00%
charge-offs
*Note: Share and per share data give effect to the 3 - for - 2 stock split effective August 5, 2002.
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except per share data)
(unaudited)
2001 2002 2003
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2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
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Asset Quality Information
Non-accrual loans $11,870 $16,214 $17,328 $14,119 $12,210 $12,373 $11,870 $11,949
Foreclosed assets $2,982 $3,161 $3,003 $5,718 $7,335 $7,178 $5,936 $5,230
Total nonperforming assets $14,852 $19,375 $20,331 $19,837 $19,545 $19,551 $17,806 $17,179
Nonperforming assets as a percent of loans
and foreclosed assets 0.88% 1.02% 1.07% 1.05% 1.00% 0.96% 0.84% 0.81%
Accruing Loans 90 days past due $6,066 $7,648 $12,591 $6,805 $6,702 $5,234 $6,407 $6,039
Accruing Loans 90 days past due as
a percent of loans 0.36% 0.40% 0.67% 0.36% 0.34% 0.26% 0.30% 0.28%
Nonperforming assets + accruing loans
90 days past due to loans and
foreclosed assets 1.23% 1.42% 1.74% 1.41% 1.34% 1.22% 1.15% 1.09%
Net charge-offs $1,996 $3,114 $4,468 $7,762 $4,198 $2,547 $3,266 $3,020
Net charge-offs as
a percent of average loans 0.48% 0.65% 0.94% 1.67% 0.88% 0.51% 0.63% 0.59%
Reserve for loan losses $28,604 $36,122 $34,417 $31,585 $32,265 $33,315 $34,740 $34,740
Reserve for loan losses as a
percent of period end loans 1.69% 1.90% 1.82% 1.68% 1.65% 1.65% 1.65% 1.64%
Reserve for loan losses to NPAs +
accruing loans 90 days past due 136.74% 133.67% 104.54% 118.55% 122.93% 134.42% 143.48% 149.63%
Provision for loan losses $1,996 $2,088 $2,966 $5,329 $4,879 $3,597 $4,691 $3,020
Provision for loan losses to net 100.00% 67.06% 66.37% 68.65% 116.21% 141.23% 143.64% 100.00%
charge-offs
Net Charge-Off Information
Net charge-offs:
Commercial/real estate loans $425 $716 $695 $5,295 $2,111 $256 $920 $741
Mortgage loans - 105 41 1 - 1 32 35
Direct consumer loans 1,094 1,710 2,429 1,399 1,167 1,420 1,370 1,281
Indirect consumer loans 221 314 532 652 462 405 428 558
Finance company loans 256 269 771 415 458 465 516 405
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Total net charge-offs $1,996 $3,114 $4,468 $7,762 $4,198 $2,547 $3,266 $3,020
Average loans:
Commercial/real estate loans $840,075 $922,344 $929,413 $948,905 $972,234 $1,004,067 $1,044,411 $1,061,644
Mortgage loans 240,366 235,428 232,110 222,235 230,652 252,350 279,397 294,611
Direct consumer loans 437,263 554,920 535,563 510,982 501,761 501,673 500,241 498,822
Indirect consumer loans 137,142 153,076 156,947 162,422 172,605 183,652 187,303 190,648
Finance Company loans 29,759 36,884 38,743 38,071 39,949 43,983 46,107 47,484
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Total average loans $1,684,605 $1,902,652 $1,892,775 $1,882,615 $1,917,200 $1,985,726 $2,057,459 $2,093,209
Net charge-offs to average loans:
Commercial/real estate loans 0.20% 0.31% 0.30% 2.26% 0.87% 0.10% 0.35% 0.28%
Mortgage loans 0.00% 0.18% 0.07% 0.00% 0.00% 0.00% 0.05% 0.05%
Direct consumer loans 1.00% 1.22% 1.80% 1.11% 0.93% 1.12% 1.09% 1.04%
Indirect consumer loans 0.65% 0.81% 1.34% 1.63% 1.07% 0.87% 0.91% 1.19%
Finance Company loans 3.45% 2.89% 7.90% 4.42% 4.60% 4.19% 4.44% 3.46%
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Total net charge-offs to average loans 0.48% 0.65% 0.94% 1.67% 0.88% 0.51% 0.63% 0.59%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except per share data)
(unaudited)
2001 2002 2003
--------------------------------------------------------------------------------------
2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
--------------------------------------------------------------------------------------
Income Statement
Interest income $56,413 $62,388 $60,005 $57,605 $58,071 $58,404 $56,702 $53,616
Interest income (TE) 58,155 64,327 61,990 59,496 59,931 60,260 58,557 55,479
Interest expense 25,479 27,584 22,243 19,320 18,373 17,597 16,762 15,581
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Net interest income (TE) 32,676 36,743 39,747 40,176 41,558 42,663 41,795 39,898
Provision for loan losses 1,996 2,088 2,966 5,329 4,879 3,597 4,691 3,020
Non-interest income excluding
securities transactions 12,071 13,356 16,732 17,390 17,519 17,669 19,012 17,339
Securities transactions gain/(loss) - 16 2 - (0) 5 (1) 455
Non-interest expense 28,050 32,070 33,916 33,596 34,063 35,163 35,438 32,991
Income before income taxes 12,959 14,018 17,615 16,750 18,275 19,721 18,822 19,818
Income tax expense 4,029 4,283 5,629 5,329 5,694 6,430 5,072 6,156
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Net income 8,930 9,735 11,986 11,421 12,581 13,291 13,750 13,663
Preferred dividends - 663 663 663 663 663 663 663
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Net income to common $8,930 $9,072 $11,323 $10,758 $11,918 $12,627 $13,086 $12,999
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Non-interest Income
and Operating Expense
Service charges on deposit accounts $6,814 $7,635 $9,315 $9,448 $10,568 $11,080 $11,151 $10,155
Trust fees 1,497 1,544 1,759 2,086 1,828 1,785 1,903 1,940
Credit card merchant discount fees 681 693 755 754 887 792 851 801
Insurance fees 372 412 319 514 589 650 559 516
Investment & annuity fees 816 832 983 1,778 1,234 855 855 931
ATM fees 803 902 791 861 969 1,003 938 966
Secondary mortgage market operations 292 416 800 679 539 416 775 640
Other income 796 921 2,011 1,270 904 1,088 1,979 1,390
Securities transactions gain/(losses) 0 16 2 0 0 5 (1) 455
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Total non-interest income 12,071 13,371 16,732 17,390 17,519 17,674 19,011 17,794
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Personnel expense 15,624 17,537 18,738 19,066 19,995 19,510 18,728 20,171
Occupancy expense (net) 1,794 2,343 2,216 2,037 2,075 2,220 2,204 2,117
Equipment expense 1,880 2,045 2,075 1,888 2,171 2,260 2,483 2,086
Other operating expense 7,843 8,880 9,622 10,417 9,633 10,985 11,835 8,438
Amortization of intangibles 909 1,265 1,265 188 188 188 188 178
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Total non-interest expense 28,050 32,070 33,916 33,596 34,062 35,163 35,438 32,991
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FTE Headcount 1,597 1,727 1,736 1,731 1,769 1,773 1,790 1,746