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
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(Address of principal executive offices) (Zip code)
(228) 868-4000
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(Registrant's telephone number, including area code)
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits.
99.1 Press Release issued by Hancock Holding Company
dated July 10, 2003, headed "Hancock Holding
Company reports earnings for first half of 2003 -
up 8 percent"
Item 9. Regulation FD Disclosure. On July 10, 2003, Hancock Holding Company
announced by press release its earnings for the first quarter ended June 30, 2003.
A copy of this press release is attached hereto as Exhibit 99.1.
Item 12. Results of Operation and Financial Condition. On July 10, 2003, Hancock
Holding Company announced by press release its earnings for the first quarter
ended June 30, 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: July 24, 2003
HANCOCK HOLDING COMPANY
(Registrant)
By: /s/ Paul D. Guichet
--------------------------------
Paul D. Guichet
Vice President
Investor Relations
Exhibit 99.1 to Hancock Holding Company Form 8-K
For Immediate Release For More Information
July 10, 2003 George A. Schloegel, Chief Executive Officer
Carl J. Chaney, Chief Financial Officer
Paul D. Guichet, Vice President, Investor Relations
800.522.6542 or 228.214.5242
Hancock Holding Company reports earnings for first half of 2003 - up 8 percent
GULFPORT, MS (July 10, 2003) - Hancock Holding Company (NASDAQ: HBHC) today announced earnings for the
six-month period ended June 30, 2003. Net income for the first half of 2003 totaled $26.0 million, compared to
$24.0 million for the first six months of 2002 - an increase of $2.0 million, or 8.3 percent. Diluted earnings
per share for the first six months of 2003 were $1.56, compared to $1.40 for the same period in 2002, resulting
in an increase of $.16 per share, or 11.4 percent.
Net income for the second quarter of 2003 was $12.4 million, a decrease of $200,000, or 1.6 percent, from
the $12.6 million reported for the second quarter of 2002. Diluted earnings per share were $0.74 for the second
quarter of 2003, compared to $0.73 for the second quarter of 2002, an increase of $.01 per share, or 1.4 percent.
The Company's returns on average assets and average common stockholders' equity for the second quarter of
2003 were 1.20 percent and 12.42 percent, respectively, compared with 1.30 percent and 13.04 percent,
respectively, for the second quarter of 2002. Annualized returns on average assets and average common
stockholders' equity for the six months ended June 30, 2003, were 1.28 percent and 13.24 percent, respectively,
compared with 1.27 percent and 12.65 percent, respectively, for the six months ended June 30, 2002.
Loans were $2.251 billion at June 30, 2003, compared to $1.954 billion at June 30, 2002, an increase of $297
million, or 15.2 percent. Deposits were $3.430 billion at June 30, 2003, compared to $3.198 billion at June 30,
2002, an increase of $232 million, or 7.3 percent. Total assets were $4.133 billion at June 30, 2003, a 6.7
percent increase from the $3.875 billion reported at June 30, 2002.
Common stockholders' equity increased 2.1 percent to $397 million at June 30, 2003, from $389 million at
June 30, 2002. Book value per share increased $1.18, or 4.8 percent, to $25.83 at June 30, 2003 from $24.65 at
June 30, 2002. Common stock repurchases totaled 51,774 shares in the second quarter of 2003, bringing the total
number of shares repurchased thus far this year to 72,774 shares.
Compared to the first quarter of 2003, net income decreased $1.3 million, or 9.4 percent, in the second
quarter of 2003. On a per-share basis, the decrease from the previous quarter was $0.08, or 9.3 percent.
Returns on average assets and average common stockholders' equity were 17 and 166 basis points lower,
respectively, in the second quarter versus the first quarter.
In commenting on Hancock's operating results for the second quarter of 2003, Chief Executive Officer George
A. Schloegel stated, "While we are proud to report an 8.3 percent increase in earnings for the first six months
2003 compared to 2002, we realize the dual challenges that a slow economy and a historically low interest rate
environment present for the Company. Rest assured that all Hancock team members are focused on working hard to
overcome these challenges for benefit of all of our shareholders."
Net Interest Income
Net interest income (te) for the second quarter of 2003 decreased $120,000, or 0.3 percent, from the second
quarter of 2002, but was $1.5 million, or 3.9 percent higher than the first quarter of 2003. The
Company's net interest margin (te) was 4.37 percent in the second quarter of 2003, 29 basis points narrower than
the same quarter a year ago, but 3 basis points wider than the previous quarter.
Compared to the same quarter a year ago, the primary driver of the slightly decreased level of net interest
income (te) was the 29-basis-point narrowing of the Company's net interest margin (te). The net interest margin
narrowed as the overall yield on loans, securities, and short-term investments fell more rapidly (78 basis
points) than the Company's ability to reduce total funding costs (49 basis points). Largely mitigating the
narrowing of the net interest margin was $256 million of average loan growth from second quarter 2002 to second
quarter 2003, which was funded by $221 million of average deposit growth for the same period. In addition, the
Company's loan to deposit ratio improved to 63.4 percent, 360 basis points higher than the 59.8 percent reported
in the same quarter a year ago. Loans now comprise 57.3 percent of the Company's average earning asset base as
compared to 53.7 percent a year ago. The aforementioned improvements in the earning asset mix were a significant
factor in the Company's ability to overcome the decline in its earning asset yield.
The higher level of net interest income (te) and net interest margin (te) expansion compared to the previous
quarter was primarily due to an improved earning asset mix. Average loan growth of $80 million, funded by
average deposit growth of $71 million, contributed to the $95 million increase in average earning assets. Also
contributing to the improved earning assets mix was the shifting of approximately $94 million of funds previously
invested in short-term investments to the Company's securities portfolio. The Company's loan to deposit ratio
improved by 100 basis points compared to the previous quarter, while loans as a percent of earning assets grew by
70 basis points. In addition to the impact of a better earning asset mix, the net interest margin expanded by 3
basis points due to a smaller reduction in the yield on average earning assets (10 basis points) than the
reduction in funding costs (13 basis points).
The Company continues to focus its efforts to increase net interest income and expand the net interest
margin by working to further reduce deposit costs, increase loan growth, and better manage the securities
portfolio. From an asset-liability management perspective, the Company's GAP position is balanced and therefore,
well positioned to absorb the recent reduction in short-term rates with minimal impact to net interest income
levels. In preparation for the eventuality of rising rates, the Company's securities portfolio has a relatively
short effective duration of 1.90, inclusive of recent portfolio purchases, which will provide flexibility and
cash flow for the near-term future.
Non-Interest Income and Expense
Non-interest income for the second quarter of 2003 was up $142,000, or 0.8 percent, compared to the same
quarter a year ago, but was down $133,000, or 0.7 percent, compared to the previous quarter. The second quarter
2003 level includes a pre-tax net securities gain of $659,000, related to the sale of $50 million of U.S.
Treasury and Agency securities with near-term maturity dates. The funds from the sale of these securities were
reinvested in higher-yielding mortgage-backed securities with a 31 basis point yield advantage. The first
quarter of 2003 also includes a pre-tax net securities gain of $455,000 related to the sale of floating-rate
securities.
Also included in the second quarter 2003 level of non-interest income was a mortgage servicing rights
temporary impairment write-down of $850,000. The Company maintains a mortgage servicing portfolio of
approximately $400 million and must periodically perform a valuation of those servicing rights. The $850,000
non-cash pre-tax write-down was required due to an increase in the expected speed of mortgage loan pre-payments
resulting from the current low-interest rate environment and represents an after-tax charge of $.03 per share.
Further impairment of the mortgage servicing rights portfolio is possible in future quarters and is dependent on
mortgage pre-payment speeds. Somewhat mitigating this issue for the Company is a recent decision to begin
selling mortgage servicing rights versus retaining these rights in our servicing portfolio pending a change in
the interest rate environment.
Excluding the impact of the aforementioned securities gains and mortgage servicing rights temporary
impairment write-down, non-interest income increased $513,000, or 3.0 percent, from the first quarter of 2003 and
was $333,000, or 1.9 percent, higher than the same quarter a year ago.
Operating expenses for the second quarter of 2003 were $1.2 million, or 3.6 percent, higher compared to the
same quarter a year ago and were $2.3 million, or 7.0 percent, higher than the previous quarter. The vast
majority of these increases was reflected in other operating expenses and spread over a wide range of operating
expense categories. In addition, the Company experienced an increase in personnel expenses primarily due to
normal salary increases, as well as an increase in the number of full-time-equivalent employees (20 from the same
quarter a year ago and 43 related to the previous quarter) partly due to the first quarter 2003 acquisition of
two branch locations in Jefferson Parish, Louisiana.
The Company's efficiency ratio (expressed as non-interest income as a percent of total revenue before
securities transactions and amortization of purchased intangibles) increased to 60.09 percent in the second
quarter of 2003. This was compared to 57.34 percent for the same quarter a year ago, and 57.33 percent for the
previous quarter.
Asset Quality
Non-performing assets as a percent of total loans and foreclosed assets were 1.00 percent at June
30, 2003, compared to 0.81 percent at March 31, 2003. Non-performing assets increased $5.4 million from March
31, 2003, and were reflected in higher levels of non-accrual loans and foreclosed assets. Approximately $4.1
million of the overall increase from March 31, 2003, was reflected in two commercial credits. Compared to the
second quarter of 2002, non-performing assets as a percent of total loans and foreclosed assets were unchanged at
1.00 percent. The composition of the Company's $22.5 million non-performing asset base continues to reflect
significant granularity, with only seven credits or properties exceeding $250,000 and 258 credit/properties below
$250,000. The Company's ratio of accruing loans 90 days or more past due to total loans was 0.13 percent at June
30, 2003, compared to 0.28 percent at March 31, 2003, and 0.34 percent at June 30, 2002.
The Company's allowance for loan losses increased slightly to $35.2 million at June 30, 2003, from $34.7
million at March 31, 2003, and was $3.0 million higher than the $32.3 million at June 30, 2002. The ratio of the
allowance for loan losses as a percent of period-end loans was 1.57 percent at June 30, 2003, compared to 1.64
percent at March 31, 2003, and 1.65 percent at June 30, 2002. The increase in the allowance for loan losses from
June 30, 2002, was a function of the $297 million of loan growth experienced between June 30, 2002, and June 30,
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 second quarter of 2003 was 0.64 percent,
compared to 0.59 percent for the first quarter of 2003. Net charge-offs were increased $446,000 from first
quarter 2003 to second quarter 2003 and were reflected primarily in higher levels of charge-offs in commercial
loans. Compared to the second quarter of 2002, net charge-offs were reduced $732,000, or 24 basis points
(expressed as a percent of average loans). The provision for loan losses in the second quarter of 2003 was $4.0
million, or 114 percent of the quarter's net charge-offs. This compares to the $3.0 million provision for the
first quarter of 2003 and $4.9 million provision for the second quarter of 2002. In each of the aforementioned
quarters, the ratio of provision for loan losses to net charge-offs was 100 percent and 116 percent, respectively.
General
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 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 $4.133 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.
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
6/30/2003 3/31/2003 6/30/2002 6/30/2003 6/30/2002
-------------------------------------------------------------
Per Common Share Data*
Earnings per share:
Basic $0.76 $0.84 $0.75 $1.60 $1.43
Diluted $0.74 $0.82 $0.73 $1.56 $1.40
Earnings per share before amortization of
purchased intangibles:
Basic $0.77 $0.85 $0.76 $1.62 $1.45
Diluted $0.75 $0.83 $0.74 $1.58 $1.42
Cash dividends per share $0.21 $0.21 $0.20 $0.42 $0.40
Book value per share (period end) $25.83 $25.45 $24.65 $25.83 $24.65
Weighted average number of shares:
Basic 15,420 15,442 15,869 15,431 15,880
Diluted 16,742 16,756 17,156 16,748 17,140
Period end number of shares 15,389 15,435 15,798 15,389 15,798
Market data:
High closing price $49.25 $46.94 $45.13 $49.25 $45.13
Low closing price $42.00 $42.80 $35.17 $42.00 $27.56
Period end closing price $46.75 $43.06 $44.92 $46.75 $44.92
Trading volume 1,274 1,418 2,246 2,695 3,363
Performance Ratios
Return on average assets 1.20% 1.37% 1.30% 1.28% 1.27%
Return on average common equity 12.42% 14.08% 13.04% 13.24% 12.65%
Earning asset yield (TE) 5.95% 6.05% 6.73% 6.00% 6.83%
Total cost of funds 1.58% 1.71% 2.06% 1.64% 2.16%
Net interest margin (TE) 4.37% 4.34% 4.66% 4.36% 4.67%
Non-interest expense as a percent of total revenue (TE)
before amortization of purchased intangibles
and securities transactions 60.09% 57.33% 57.34% 58.73% 57.68%
Average common equity as a percent of average total assets 9.68% 9.73% 9.97% 9.70% 10.01%
Leverage ratio 9.16% 9.21% 9.35% 9.16% 9.35%
Tangible common equity to assets 8.31% 8.14% 8.73% 8.31% 8.73%
Net charge-offs as a percent of average loans 0.64% 0.59% 0.88% 0.61% 1.27%
Reserve for loan losses as a percent of period end loans 1.57% 1.64% 1.65% 1.57% 1.65%
Reserve for loan losses to NPAs + accruing loans 90 days past due 138.95% 149.63% 122.93% 138.95% 122.93%
Provision for loan losses to net charge-offs 114.43% 100.00% 116.21% 107.71% 85.35%
*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 Six Months Ended
6/30/2003 3/31/2003 6/30/2002 6/30/2003 6/30/2002
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Asset Quality Information
Non-accrual loans $16,860 $11,949 $12,210 $16,860 $12,210
Foreclosed assets $5,685 $5,230 $7,335 $5,685 $7,335
Total non-performing assets $22,545 $17,179 $19,545 $22,545 $19,545
Non-performing assets as a percent of loans and foreclosed 1.00% 0.81% 1.00% 1.00% 1.00%
assets
Accruing Loans 90 days past due $2,817 $6,039 $6,702 $2,817 $6,702
Accruing Loans 90 days past due as a percent of loans 0.13% 0.28% 0.34% 0.13% 0.34%
Non-performing assets + accruing loans 90 days past due
to loans and foreclosed assets 1.12% 1.09% 1.34% 1.12% 1.34%
Net charge-offs $3,466 $3,020 $4,198 $6,486 $11,959
Net charge-offs as a percent of average loans 0.64% 0.59% 0.88% 0.61% 1.27%
Reserve for loan losses $35,240 $34,740 $32,265 $35,240 $32,265
Reserve for loan losses as a percent of period end loans 1.57% 1.64% 1.65% 1.57% 1.65%
Reserve for loan losses to NPAs + accruing loans 90 days past 138.95% 149.63% 122.93% 138.95% 122.93%
due
Provision for loan losses $3,966 $3,020 $4,879 $6,986 $10,207
Provision for loan losses to net charge-offs 114.43% 100.00% 116.21% 107.71% 85.35%
Reserve for Loan Losses
Beginning Balance 34,740 34,740 31,584 34,017 34,017
Provision for loan loss 3,966 3,020 4,879 6,986 10,207
Charge-offs 4,788 4,771 5,574 9,559 14,773
Recoveries 1,322 1,751 1,376 3,073 2,814
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Net charge-offs 3,466 3,020 4,198 6,486 11,959
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Ending Balance 35,240 34,740 32,265 35,240 32,265
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Net Charge-Off Information
Net charge-offs:
Commercial/real estate loans $1,605 $741 $2,111 $2,346 $7,405
Mortgage loans 4 35 - 39 1
Direct consumer loans 1,094 1,251 1,167 2,345 2,566
Indirect consumer loans 334 588 462 922 1,114
Finance company loans 429 405 458 834 873
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Total net charge-offs $3,466 $3,020 $4,198 $6,486 $11,959
Average loans:
Commercial/real estate loans $1,100,310 $1,061,644 $972,234 $1,081,084 $960,636
Mortgage loans 331,930 294,611 230,653 313,374 226,467
Direct consumer loans 492,484 498,822 501,761 495,636 506,346
Indirect consumer loans 198,917 190,648 172,605 194,805 167,542
Finance Company loans 49,164 47,484 39,949 48,329 39,015
----------------------------------------------------------------
Total average loans $2,172,805 $2,093,209 $1,917,200 $2,133,227 $1,900,006
Net charge-offs to average loans:
Commercial/real estate loans 0.59% 0.28% 0.87% 0.44% 1.55%
Mortgage loans 0.00% 0.05% 0.00% 0.03% 0.00%
Direct consumer loans 0.89% 1.02% 0.93% 0.95% 1.02%
Indirect consumer loans 0.67% 1.25% 1.07% 0.95% 1.34%
Finance Company loans 3.50% 3.46% 4.60% 3.48% 4.51%
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Total net charge-offs to average loans 0.64% 0.59% 0.88% 0.61% 1.27%
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)>
Three Months Ended Six Months Ended
6/30/2003 3/31/2003 6/30/2002 6/30/2003 6/30/2002
-----------------------------------------------------------
Income Statement
Interest income $54,627 $53,616 $58,071 $108,244 $115,676
Interest income (TE) 56,400 55,479 59,931 111,879 119,427
Interest expense 14,963 15,581 18,373 30,544 37,694
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Net interest income (TE) 41,438 39,898 41,558 81,336 81,733
Provision for loan losses 3,966 3,020 4,879 6,986 10,207
Non-interest income excluding securities transactions 17,002 17,339 17,519 34,342 34,909
Securities transactions gain/(loss) 659 455 (0) 1,114 (0)
Non-interest expense 35,297 32,991 34,063 68,288 67,657
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Income before income taxes 18,063 19,818 18,275 37,881 35,026
Income tax expense 5,681 6,156 5,694 11,836 11,023
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Net income 12,382 13,663 12,581 26,045 24,003
Preferred dividends 663 663 663 1,327 1,327
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Net income to common $11,719 $13,000 $11,918 $24,718 $22,676
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Non-interest Income and Operating Expense
Service charges on deposit accounts $10,202 $10,155 $10,568 $20,357 $20,016
Trust fees 2,032 1,940 1,828 3,972 3,915
Credit card merchant discount fees 1,091 801 887 1,891 1,641
Insurance fees 836 516 589 1,352 1,103
Investment & annuity fees 840 931 1,234 1,771 3,012
ATM fees 990 966 969 1,956 1,830
Secondary mortgage market operations 640 539 436 1,218
(203)
Other income 1,216 1,390 904 2,606 2,174
Securities transactions gain/(losses) 659 455 0 1,114 0
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Total non-interest income 17,661 17,794 17,519 35,455 34,909
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Personnel expense 20,705 20,171 19,995 40,877 39,061
Occupancy expense (net) 2,294 2,117 2,075 4,411 4,111
Equipment expense 2,221 2,086 2,171 4,307 4,059
Other operating expense 9,899 8,438 9,633 18,337 20,051
Amortization of intangibles 178 178 188 356 375
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Total non-interest expense 35,297 32,991 34,062 68,288 67,657
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FTE Headcount 1,789 1,746 1,769 1,789 1,769
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
6/30/2003 3/31/2003 6/30/2002 6/30/2003 6/30/2002
-------------------------------------------------------------------
Period end Balance Sheet
Commercial/real estate loans $1,137,004 $1,073,526 $992,584 $1,137,004 $992,584
Mortgage loans 360,997 314,048 237,888 360,997 237,888
Direct consumer loans 489,972 495,388 501,633 489,972 501,633
Indirect consumer loans 211,903 190,719 178,903 211,903 178,903
Finance Company loans 50,894 47,657 42,802 50,894 42,802
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Total loans 2,250,770 2,121,338 1,953,810 2,250,770 1,953,810
Securities 1,549,522 1,661,626 1,591,182 1,549,522 1,591,182
Short-term investments 7,795 40,371 19,981 7,795 19,981
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Earning assets 3,808,087 3,823,335 3,564,973 3,808,087 3,564,973
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Reserve for loan losses (35,240) (34,740) (32,265) (35,240) (32,265)
Other assets 360,205 364,592 342,372 360,205 342,372
-------------------------------------------------------------------
Total assets $4,133,052 $4,153,186 $3,875,080 $4,133,052 $3,875,080
-------------------------------------------------------------------
-------------------------------------------------------------------
Non-interest bearing deposits $612,098 $611,901 $633,374 $612,098 $633,374
Interest bearing transaction deposits 1,668,000 1,700,917 1,435,330 1,668,000 1,435,330
Time deposits 1,149,898 1,146,078 1,129,035 1,149,898 1,129,035
Total interest bearing deposits 2,817,898 2,846,995 2,564,365 2,817,898 2,564,365
-------------------------------------------------------------------
Total deposits 3,429,996 3,458,895 3,197,740 3,429,996 3,197,740
Other borrowed funds 229,123 226,931 224,666 229,123 224,666
Other liabilities 39,389 37,526 26,146 39,389 26,146
Preferred stock 37,069 37,069 37,069 37,069 37,069
Common shareholders' equity 397,475 392,765 389,459 397,475 389,459
-------------------------------------------------------------------
Total liabilities, preferred stock & common equity $4,133,052 $4,153,186 $3,875,080 $4,133,052 $3,875,080
-------------------------------------------------------------------
-------------------------------------------------------------------
Average Balance Sheet
Commercial/real estate loans $1,100,310 $1,061,644 $972,234 $1,081,084 $960,636
Mortgage loans 331,930 294,611 230,653 313,374 226,467
Direct consumer loans 492,484 498,822 501,761 495,636 506,346
Indirect consumer loans 198,917 190,648 172,605 194,805 167,542
Finance Company loans 49,164 47,484 39,949 48,329 39,015
-------------------------------------------------------------------
Total loans 2,172,805 2,093,209 1,917,200 2,133,227 1,900,006
Securities 1,575,392 1,466,360 1,554,012 1,521,177 1,493,956
Short-term investments 46,818 140,805 99,121 93,552 118,137
-------------------------------------------------------------------
Earning assets 3,795,016 3,700,374 3,570,333 3,747,956 3,512,099
-------------------------------------------------------------------
Reserve for loan losses (34,911) (34,740) (31,819) (34,826) (33,044)
Other assets 372,555 379,632 342,972 376,074 343,100
-------------------------------------------------------------------
Total assets $4,132,659 $4,045,265 $3,881,486 $4,089,204 $3,822,155
-------------------------------------------------------------------
-------------------------------------------------------------------
Non-interest bearing deposits $599,041 $582,992 $623,300 $591,061 $616,210
Interest bearing transaction deposits 1,686,294 1,651,450 1,436,384 1,668,968 1,408,195
Time deposits 1,142,855 1,122,536 1,147,475 1,132,752 1,129,980
Total interest bearing deposits 2,829,150 2,773,986 2,583,859 2,801,720 2,538,175
-------------------------------------------------------------------
Total deposits 3,428,190 3,356,978 3,207,159 3,392,781 3,154,385
Other borrowed funds 231,726 223,895 224,474 227,832 222,440
Other liabilities 35,815 33,726 25,833 34,776 25,654
Preferred stock 37,069 37,069 37,069 37,069 37,069
Common shareholders' equity 399,859 393,597 386,950 396,745 382,608
-------------------------------------------------------------------
Total liabilities, preferred stock & common equity $4,132,659 $4,045,265 $3,881,486 $4,089,204 $3,822,155
-------------------------------------------------------------------
-------------------------------------------------------------------
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
6/30/2003 3/31/2003 6/30/2002 6/30/2003 6/30/2002
-------------------------------------------------------------------
Average Balance Sheet Mix
Percentage of earning assets/funding sources:
Loans 57.25% 56.57% 53.70% 56.92% 54.10%
Securities 41.51% 39.63% 43.53% 40.59% 42.54%
Short-term investments 1.23% 3.81% 2.78% 2.50% 3.36%
-------------------------------------------------------------------
Earning assets 100.00% 100.00% 100.00% 100.00% 100.00%
-------------------------------------------------------------------
-------------------------------------------------------------------
Non-interest bearing deposits 15.78% 15.75% 17.46% 15.77% 17.55%
Interest bearing transaction deposits 44.43% 44.63% 40.23% 44.53% 40.10%
Time deposits 30.11% 30.34% 32.14% 30.22% 32.17%
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Total deposits 90.33% 90.72% 89.83% 90.52% 89.81%
Other borrowed funds 6.11% 6.05% 6.29% 6.08% 6.33%
Other net interest-free funding sources 3.56% 3.23% 3.88% 3.40% 3.85%
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Total funding sources 100.00% 100.00% 100.00% 100.00% 100.00%
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Loan mix:
Commercial/real estate loans 50.64% 50.72% 50.71% 50.68% 50.56%
Mortgage loans 15.28% 14.07% 12.03% 14.69% 11.92%
Direct consumer loans 22.67% 23.83% 26.17% 23.23% 26.65%
Indirect consumer loans 9.15% 9.11% 9.00% 9.13% 8.82%
Finance Company loans 2.26% 2.27% 2.08% 2.27% 2.05%
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Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
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Average dollars (in thousands):
Loans 2,172,805 2,093,209 $1,917,200 $2,133,227 $1,900,006
Securities 1,575,392 1,466,360 1,554,012 1,521,177 1,493,956
Short-term investments 46,818 140,805 99,121 93,552 118,137
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Earning assets 3,795,016 3,700,374 $3,570,333 $3,747,956 $3,512,099
Non-interest bearing deposits $599,041 $582,992 $623,300 $591,061 $616,210
Interest bearing transaction deposits 1,686,294 1,651,450 1,436,384 1,668,968 1,408,195
Time deposits 1,142,855 1,122,536 1,147,475 1,132,752 1,129,980
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Total deposits 3,428,190 3,356,978 3,207,159 3,392,781 3,154,385
Other borrowed funds 231,726 223,895 224,474 227,832 222,440
Other net interest-free funding sources 135,099 119,501 138,700 127,343 135,274
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Total funding sources $3,795,016 $3,700,374 $3,570,333 $3,747,956 $3,512,099
Loans:
Commercial/real estate loans $1,100,310 $1,061,644 $972,234 $1,081,084 $960,636
Mortgage loans 331,930 294,611 230,653 313,374 226,467
Direct consumer loans 492,484 498,822 501,761 495,636 506,346
Indirect consumer loans 198,917 190,648 172,605 194,805 167,542
Finance Company loans 49,164 47,484 39,949 48,329 39,015
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Total average loans $2,172,805 $2,093,209 $1,917,200 $2,133,227 $1,900,006