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 8.01. Other Events. On April 14, 2005, Hancock Holding Company
issued a press release reporting its first quarter 2005 earnings were up 9 percent.
The press release and related financial statements are attached hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits.
99.1 Press Release issued by Hancock Holding Company
dated April 14, 2005, headed "Hancock Holding
Company reports first quarter 2005 earnings -
up 9 percent" and related financial statements.
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 18, 2005
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
- --------------------- --------------------
April 14, 2005 George A. Schloegel, Chief Executive Officer
Carl J. Chaney, CFO, Hancock Holding Company
Paul D. Guichet, V.P., Investor Relations
800.522.6542 or 228.214.5242
- -------------------------------------------------------------------------------------------------------------------
Hancock Holding Company reports first quarter 2005 earnings - up 9 percent
GULFPORT, MS (April 14, 2005) - Hancock Holding Company (NASDAQ: HBHC) today announced earnings for the
quarter ended March 31, 2005. Net income for the first quarter of 2005 totaled $15.44 million, compared to
$14.14 million reported for the first quarter of 2004, an increase of $1.3 million, or 9 percent.
In commenting on Hancock's operating results for the first quarter of 2005, Hancock Holding Company
President Leo W. Seal, Jr. stated, "While Hancock's management team is pleased with the 9 percent growth in
earnings from the first quarter of 2004, we realize that 2005 will present a unique challenge to the Company as
we strive to maintain the current asset quality improvements and look for opportunities to expand and further
strengthen our competitive presence in our primary and targeted growth markets."
Diluted earnings per share for the first quarter of 2005 were $0.47, compared to $0.43 for the first quarter
of 2004, resulting in an increase of $0.04 per share, or 9 percent. Net income for the fourth quarter of 2004
was $15.79 million and diluted earnings per share were $0.48.
The Company's annualized returns on average assets and average common stockholders' equity for the first
quarter of 2005 were 1.32 percent and 13.32 percent, respectively, compared with 1.33 percent and 13.01 percent,
respectively, for the first quarter of 2004. Annualized returns on average assets and average common
stockholders' equity for the fourth quarter of 2004 were 1.39 percent and 13.54 percent, respectively.
Key performance trends and highlights for the first quarter of 2005 included:
o Average loans grew $298 million, or 12 percent, compared to the first quarter of 2004 with significant
growth reflected in commercial, mortgage and indirect consumer loans. Compared to the prior quarter,
average loans grew $62 million, or 2 percent, with commercial loans the major growth category.
o Average deposits increased $303 million, or 9 percent, over the first quarter of 2004 with growth in all
deposit categories except for interest-bearing transaction deposits. Average growth over the fourth
quarter of 2004 was $225 million, or 6 percent, with over $168 million of growth reflected in seasonal
inflows of public fund deposits.
o Net interest margin (tax equivalent "te") was 4.35 percent in the current quarter, 6 basis points
narrower than the first quarter of 2004 and 18 basis points narrower than the prior quarter. In
addition, net interest income (te) was up $3.79 million, or 9 percent, from the first quarter of 2004,
but was down $24,000, or less than 1 percent, from the prior quarter.
- more -
o The ratio of non-performing assets to loans and foreclosed assets at March 31, 2005 fell 23 basis points
from March 31, 2004 to 0.36 percent, and was reduced 4 basis points from December 31, 2004.
Non-performing assets at March 31, 2005 stood at $9.93 million, a decrease of $4.96 million from March
31, 2004, and a decrease of $1.07 million from December 31, 2004.
o Net charge-offs as a percent of average loans for the first quarter 2005 was 0.33 percent, a decrease of
12 basis points from the same quarter a year ago and 23 basis points lower than the prior quarter.
Compared to the prior quarter, lower overall levels of net charge-offs were reflected in every loan
category, with the exception of a nominal increase in net charge-offs of mortgage loans.
Net Interest Income
Net interest income (te) for the first quarter of 2005 increased $3.79 million, or 9 percent, from the first
quarter of 2004, but was $24,000, or less than 1 percent, lower than the fourth quarter of 2004. The Company's
net interest margin (te) was 4.35 percent in the first quarter of 2005, 6 basis points narrower than the same
quarter a year ago, and 18 basis points narrower than the previous quarter.
Compared to the same quarter a year ago, the primary driver of the $3.79 million increase in net interest
income (te) was a $419 million, or 11 percent, increase in average earning assets, mainly from average loan
growth of $298 million, or 12 percent. In addition, the securities portfolio increased $63 million, or 5
percent, while short-term investments increased $58 million, or 76 percent. The Company's overall increase in
earnings assets was primarily funded by average deposit growth of $303 million, or 9 percent. As previously
mentioned, deposit growth was reflected in nearly every deposit category with the majority of the $303 million
increase reflected in public fund deposits (up $116 million) and time deposits (up $123 million). This
improvement in the earning asset mix enabled the Company to improve its loan to deposit ratio from 70 percent in
the first quarter of 2004 to 72 percent in the current quarter. The net interest margin (te) narrowed slightly
(by 6 basis points) as the cost of funds increased more rapidly (14 basis points) than the overall yield on
loans, securities and short-term investments (8 basis points). Most of the increase in funding costs was
reflected in the rate paid on public fund deposits (up 66 basis points).
The slightly lower level of net interest income (te) (down $24,000, or less than 1 percent) and the lower
net interest margin (down 18 basis points) as compared to the previous quarter was primarily due to the following
major factors:
o Earning asset mix unfavorable as loan growth slowed to $62 million and deposits surged $225 million; the
relative percentage of earning assets deployed in loans dropped 200 basis points to 65 percent; average
earning assets were up $205 million, with over $143 million invested in either the securities portfolio
or short-term funds.
o Loan yield up only 2 basis points as loan fees dropped $474,000 and loan clients rushed to convert
variable rate loans to a fixed rate. The overall percent of variable rate loans to total loans dropped
to 38 percent in the first quarter of 2005 from as high as 40 percent in the third quarter of 2004.
o Total cost of funds increased 8 basis points due to a 30 basis point increase in the rate paid on public
fund deposits (mostly index driven); the rate paid on time deposits was up only 1 basis point, while the
rate on interest-bearing transaction deposits actually dropped by 2 basis points.
- more -
Asset-Liability Management
Strategic planning forecasts reflect stability in earnings growth. In accordance with the Company's
methodology, rate increases of 100 and 200 basis points are projected to increase annual net interest income
between 2 percent and 5 percent.
Loan growth below forecast levels combined with changes in the portfolio mix resulted in lower asset yield
growth than originally projected, as previously described above. The tax equivalent loan yield grew by 2 basis
points, driven by a drop in the percentage of variable rate loans. Compared to the first quarter of 2004, the
percentage has fallen from 39 percent to 38 percent. Funding cost increases were in line with strategic planning
forecasts for the current rate environment. Funding costs rose 8 basis points from fourth quarter 2004 to first
quarter 2005; however, the average earning asset yields fell by 10 basis points.
As part of its Asset-Liability Management strategy, the Company closely monitors the effective duration of
its securities portfolio. The portfolio's effective duration remains well within management's target range.
Currently, the effective duration is 3.00 versus 2.60 one quarter ago. An instantaneous rate increase of 100
basis points would move the effective duration to 3.63, while a 200 basis points rise would result in an
effective duration of 3.89.
Non-Interest Income and Expense
Non-interest income (excluding gains from the sale of branches and security transactions) for the first
quarter of 2005 was up $2.20 million, or 11 percent, compared to the same quarter a year ago and was up $390,000,
or 2 percent, compared to the fourth quarter of 2004. Impacting the change from the same quarter a year ago were
higher levels of insurance fees (up $1.40 million, or 56 percent) in Magna Insurance Company and Hancock
Insurance Agency. In addition, increases were reflected in trust fees (up $556,000, or 28 percent) and
investment and annuity fees (up $495,000, or 71 percent). Service charges on deposit accounts were down
$740,000, or 7 percent, from the first quarter of 2004. The increase in non-interest income from the prior
quarter was concentrated in insurance fees (up $2.06 million, or 113 percent), again, due primarily to Magna
Insurance Company. This was offset by decreases in service charges on deposit accounts and secondary mortgage
market operations (down $1.57 million and $990,000, respectively). Secondary mortgage market operations income
was lower due to the reversal (due to changes in the interest rate environment) of a previously established
$850,000 valuation allowance related to the mortgage servicing rights intangible during the fourth quarter of
2004, which was not repeated during the first quarter of 2005.
Operating expenses for the first quarter of 2005 were $2.38 million, or 6 percent, higher compared to the
same quarter a year ago, and were $3.70 million, or 10 percent, higher than the previous quarter. The increase
from the first quarter of 2004 was primarily due to higher expenses levels related to Magna Insurance Company
($1.70 million) and a higher expense base related to the Company's Florida operation ($1.24 million). A
significant factor driving the $3.70 million increase in operating expenses from the previous quarter was the
presence of two one-time items in the fourth quarter of 2004, as well as a higher expense base related to Magna
Insurance Company (up $1.64 million) in 2005. The two fourth quarter 2004 one-time items that were not repeated
during the first quarter of 2005 included an $800,000 reversal of previously accrued expense related to favorable
claims experience in the Company's medical plan and a recovery of $1.15 million in previously paid franchise
taxes to the State of Mississippi.
Asset Quality
Overall, asset quality continued the established trend of quarterly improvement with significant reductions
from the prior quarter in both non-performing assets (down $1.07 million) and net charge-offs (down $1.58
million).
- more -
Compared to the first quarter of 2004, non-performing assets as a percent of total loans and foreclosed
assets was down 23 basis points from the 0.59 percent reported at March 31, 2004. Non-performing assets as a
percent of total loans and foreclosed assets was 0.36 percent at March 31, 2005, compared to 0.40 percent at
December 31, 2004. Non-performing assets decreased $1.07 million from December 31, 2004 and was reflected in
lower levels of non-accrual loans. The majority of the improvement in nonaccrual loans occurred in smaller
credits (less than $250,000) in Louisiana. The composition of the Company's $9.93 million of non-performing
assets continues to reflect significant granularity with only 6 credits/properties exceeding $250,000 and 117
credits/properties below $250,000. The Company's ratio of accruing loans 90 days or more past due to total loans
was 0.10 percent at March 31, 2005, compared to 0.19 percent at December 31, 2004 and 0.20 percent at March 31,
2004.
The Company's allowance for loan losses was $3.68 million, or 10 percent, higher than the $37.50 million
reported at March 31, 2004, and increased $500,000, or 1 percent, to $41.18 million at March 31, 2005 from $40.68
million at December 31, 2004. The increase in the allowance for loan losses from March 31, 2004 was a function
of the Company's allowance methodology as well as $269 million of period-end loan growth experienced between
March 31, 2004 and March 31, 2005. The ratio of the allowance for loan losses to period-end loans decreased 1
basis point from 1.49 percent at March 31, 2004 to 1.48 percent at March 31, 2005 and December 31, 2004. The
reserve coverage ratio (allowance for loan losses to non-performers and past dues) was 324 percent in first
quarter 2005, as compared to 189 percent in first quarter 2004, and 252 percent in fourth quarter 2004.
Annualized net charge-offs as a percent of average loans for the first quarter of 2005 were 0.33 percent,
compared to 0.45 percent for the first quarter of 2004. Net charge-offs decreased $526,000, while the ratio of
annualized net charge-offs as a percent of average loans decreased 12 basis points. Compared to the fourth
quarter of 2004 net charge-offs decreased $1.58 million. The ratio of annualized net charge-offs as a percent of
average loans decreased 23 basis points from 0.56 percent for the previous quarter. Reductions in net charge-offs
were reflected in all categories except mortgage loans, where there was a nominal increase. The provision for
loan losses in the first quarter of 2005 was $2.76 million, or 122 percent of the quarter's net charge-offs.
This compares to the $3.54 million provision for the first quarter of 2004 and $5.80 million provision for the
fourth quarter of 2004. The ratio of provision for loan losses to net charge-offs was 127 percent in the first
quarter of 2004 and 151 percent in the fourth quarter of 2004.
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 that financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America (GAAP).
Hancock Holding Company - parent company of Hancock Bank (Mississippi), Hancock Bank of Louisiana,
Hancock Bank of Florida and Magna Insurance Company - has assets of $4.8 billion at March 31, 2005. Founded in
1899, Hancock Bank stands among the strongest, safest five-star financial institutions in America. Hancock Bank
operates more than 100 full-service offices and more than 140 automated teller machines throughout South
Mississippi, Louisiana and Florida as well as subsidiaries Hancock Investment Services, Inc., Hancock Insurance
Agency, and Harrison Finance Company. Investors can access additional corporate information or online
banking and bill pay services at www.hancockbank.com.
- more -
"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 - Add 5 -
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
------------------------------------------------
3/31/2005 12/31/2004 3/31/2004
------------------------------------------------
Per Common Share Data
Earnings per share:
Basic $0.48 $0.49 $0.44
Diluted $0.47 $0.48 $0.43
Cash dividends per share $0.165 $0.165 $0.125
Book value per share (period end) $14.16 $14.32 $13.75
Tangible book value per share (period end) $11.99 $12.16 $11.58
Weighted average number of shares:
Basic 32,463 32,467 32,048
Diluted 33,019 33,078 33,018
Period-end number of shares 32,463 32,440 32,558
Market data:
High closing price $34.20 $34.83 $32.00
Low closing price $30.25 $30.00 $27.08
Period end closing price $32.50 $33.46 $30.96
Trading volume 3,284 2,781 2,745
Other Period-end Data
FTE Headcount 1,766 1,767 1,717
Tangible common equity $389,344 $394,389 $377,056
Tier I capital $408,163 $399,320 $372,527
Goodwill $55,409 $55,409 $59,281
Amortizable intangibles $12,510 $12,263 $8,732
Mortgage servicing intangibles $2,288 $2,520 $2,464
Performance Ratios
Return on average assets 1.32% 1.39% 1.33%
Return on average common equity 13.32% 13.54% 13.01%
Earning asset yield (TE) 5.90% 6.00% 5.82%
Total cost of funds 1.55% 1.47% 1.41%
Net interest margin (TE) 4.35% 4.53% 4.41%
Non-interest expense as a percent of total revenue (TE)
before amortization of purchased intangibles and
securities transactions 59.99% 54.95% 60.17%
Average common equity as a percent of average total assets 9.94% 10.26% 10.24%
Leverage ratio 8.75% 8.97% 8.73%
Tangible common equity to assets 8.28% 8.58% 8.77%
Net charge-offs as a percent of average loans 0.33% 0.56% 0.45%
Allowance for loan losses as a percent of period end loans 1.48% 1.48% 1.49%
Allowance for loan losses to NPAs + accruing loans 90 days past due 323.66% 251.85% 188.51%
Provision for loan losses to net charge-offs 122.13% 150.98% 126.92%
Loan/Deposit Ratio 72.40% 75.19% 70.16%
Non-interest income excluding securities transactions,
as a percent of total revenue (TE) 32.77% 32.37% 34.75%
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Hancock Holding Company - Add 6 -
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
-------------------------------------------
3/31/2005 12/31/2004 3/31/2004
-------------------------------------------
Asset Quality Information
Non-accrual loans $6,335 $7,480 $9,670
Foreclosed assets 3,591 3,513 5,212
-------------------------------------------
Total non-performing assets $9,926 $10,993 $14,882
-------------------------------------------
Non-performing assets as a percent of loans and foreclosed assets 0.36% 0.40% 0.59%
Accruing Loans 90 days past due $2,798 $5,160 $5,011
Accruing Loans 90 days past due as a percent of loans 0.10% 0.19% 0.20%
Non-performing assets + accruing loans 90 days past due
to loans and foreclosed assets 0.46% 0.59% 0.79%
Net charge-offs $2,260 $3,839 $2,786
Net charge-offs as a percent of average loans 0.33% 0.56% 0.45%
Allowance for loan losses $41,182 $40,682 $37,500
Allowance for loan losses as a percent of period end loans 1.48% 1.48% 1.49%
Allowance for loan losses to NPAs + accruing loans 90 days past due 323.66% 251.85% 188.51%
Provision for loan losses $2,760 $5,796 $3,536
Provision for loan losses to net charge-offs 122.13% 150.98% 126.92%
Allowance for Loan Losses
Beginning Balance $40,682 $38,725 $36,750
Provision for loan loss 2,760 5,796 3,536
Charge-offs 4,026 5,562 5,695
Recoveries 1,766 1,723 2,909
-------------------------------------------
Net charge-offs 2,260 3,839 2,786
-------------------------------------------
Ending Balance $41,182 $40,682 $37,500
-------------------------------------------
Net Charge-Off Information
Net charge-offs:
Commercial/real estate loans $770 $1,003 $1,159
Mortgage loans 68 38 (1)
Direct consumer loans 501 1,173 637
Indirect consumer loans 540 910 442
Finance company loans 381 715 549
-------------------------------------------
Total net charge-offs $2,260 $3,839 $2,786
Average loans:
Commercial/real estate loans $1,491,008 $1,439,074 $1,299,399
Mortgage loans 407,258 408,535 367,320
Direct consumer loans 503,700 498,336 487,452
Indirect consumer loans 313,542 307,413 268,311
Finance Company loans 60,720 60,604 55,488
-------------------------------------------
Total average loans $2,776,229 $2,713,963 $2,477,971
Net charge-offs to average loans:
Commercial/real estate loans 0.21% 0.28% 0.36%
Mortgage loans 0.07% 0.04% 0.00%
Direct consumer loans 0.40% 0.94% 0.53%
Indirect consumer loans 0.70% 1.18% 0.66%
Finance Company loans 2.54% 4.69% 3.98%
-------------------------------------------
Total net charge-offs to average loans 0.33% 0.56% 0.45%
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Hancock Holding Company - Add 7 -
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
----------------------------------------------
3/31/2005 12/31/2004 3/31/2004
----------------------------------------------
Income Statement
Interest income $60,531 $59,190 $53,842
Interest income (TE) 62,302 61,051 55,696
Interest expense 16,289 15,014 13,470
----------------------------------------------
Net interest income (TE) 46,013 46,037 42,226
Provision for loan losses 2,760 5,796 3,536
Non-interest income excluding gains on sale of branches
and securities transactions 22,427 22,037 20,231
Gains on sale of branches - - 2,258
Securities transactions gains/(losses) 7 4 149
Non-interest expense 41,642 37,945 39,262
----------------------------------------------
Income before income taxes 22,273 22,475 20,212
Income tax expense 6,836 6,684 6,068
----------------------------------------------
Net income 15,438 15,791 14,144
Preferred dividends - - -
----------------------------------------------
Net income to common $15,438 $15,791 $14,144
==============================================
Non-interest Income and Operating Expense
Service charges on deposit accounts $9,490 $11,062 $10,230
Trust fees 2,541 2,487 1,985
Debit card & merchant fees 1,030 1,172 861
Insurance fees 3,881 1,824 2,484
Investment & annuity fees 1,188 581 693
ATM fees 1,372 1,119 1,128
Secondary mortgage market operations 499 1,489 385
Other income 2,426 2,302 2,465
----------------------------------------------
Non-interest income excluding gains on sale
of branches and securities transactions 22,427 22,037 20,231
Gains on sale of branches 0 0 2,258
Securities transactions gains/(losses) 7 4 149
----------------------------------------------
Total non-interest income including gains on
sale of branches and securities transactions 22,433 22,041 22,638
----------------------------------------------
Personnel expense 22,379 21,706 22,896
Occupancy expense (net) 2,495 2,627 2,413
Equipment expense 2,357 2,548 2,326
Other operating expense 13,828 10,526 11,302
Amortization of intangibles 584 538 325
----------------------------------------------
Total non-interest expense $41,642 $37,945 $39,262
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Hancock Holding Company - Add 8 -
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
----------------------------------------------
3/31/2005 12/31/2004 3/31/2004
----------------------------------------------
Period-end Balance Sheet
Commercial/real estate loans $1,488,523 $1,464,595 $1,319,388
Mortgage loans 414,346 408,726 388,447
Direct consumer loans 510,116 503,443 483,019
Indirect consumer loans 318,164 310,378 275,810
Finance Company loans 60,679 61,419 56,216
----------------------------------------------
Total loans 2,791,829 2,748,560 2,522,878
Securities 1,414,037 1,302,369 1,349,504
Short-term investments 94,930 150,261 78,185
----------------------------------------------
Earning assets 4,300,796 4,201,191 3,950,567
----------------------------------------------
Allowance for loan losses (41,182) (40,682) (37,500)
Other assets 509,402 504,218 452,600
----------------------------------------------
Total assets $4,769,016 $4,664,726 $4,365,666
==============================================
Non-interest bearing deposits $724,338 $697,353 $650,867
Interest bearing transaction deposits 1,332,269 1,336,620 1,353,639
Interest bearing Public Fund deposits 724,362 702,107 614,746
Time deposits 1,106,238 1,061,865 1,011,421
----------------------------------------------
Total interest bearing deposits 3,162,870 3,100,591 2,979,806
----------------------------------------------
Total deposits 3,887,208 3,797,945 3,630,673
Other borrowed funds 266,528 251,111 218,568
Other liabilities 155,729 151,089 68,856
Preferred stock - - 36
Common shareholders' equity 459,551 464,582 447,533
----------------------------------------------
Total liabilities, preferred stock & common equity $4,769,016 $4,664,726 $4,365,666
==============================================
Average Balance Sheet
Commercial/real estate loans $1,491,008 $1,439,074 $1,299,399
Mortgage loans 407,258 408,535 367,320
Direct consumer loans 503,700 498,336 487,452
Indirect consumer loans 313,542 307,413 268,311
Finance Company loans 60,720 60,604 55,488
----------------------------------------------
Total loans 2,776,229 2,713,963 2,477,971
Securities 1,350,505 1,320,529 1,287,487
Short-term investments 132,582 19,517 75,311
----------------------------------------------
Earning average assets 4,259,316 4,054,009 3,840,769
----------------------------------------------
Allowance for loan losses (40,688) (39,199) (36,927)
Other assets 512,166 506,032 467,781
----------------------------------------------
Total assets $4,730,794 $4,520,841 $4,271,623
==============================================
Non-interest bearing deposits $701,144 $671,758 $622,271
Interest bearing transaction deposits 1,332,152 1,359,952 1,348,113
Interest bearing Public Fund deposits 711,789 543,584 595,311
Time deposits 1,089,367 1,033,974 966,215
----------------------------------------------
Total interest bearing deposits 3,133,308 2,937,510 2,909,639
----------------------------------------------
Total deposits 3,834,452 3,609,268 3,531,911
Other borrowed funds 271,473 299,782 231,609
Other liabilities 154,801 147,762 61,823
Preferred stock - - 9,009
Common shareholders' equity 470,068 464,030 437,272
----------------------------------------------
Total liabilities, preferred stock & common equity $4,730,794 $4,520,841 $4,271,623
==============================================
- more -
Hancock Holding Company - Add 9 -
Financial Highlights
(amounts in thousands, except per share data)
(unaudited)
Three Months Ended
-----------------------------------------------
3/31/2005 12/31/2004 3/31/2004
-----------------------------------------------
Average Balance Sheet Mix
Percentage of earning assets/funding sources:
Loans 65.18% 66.95% 64.52%
Securities 31.71% 32.57% 33.52%
Short-term investments 3.11% 0.48% 1.96%
-----------------------------------------------
Earning average assets 100.00% 100.00% 100.00%
===============================================
Non-interest bearing deposits 16.46% 16.57% 16.20%
Interest bearing transaction deposits 31.28% 33.55% 35.10%
Interest bearing Public Fund deposits 16.71% 13.41% 15.50%
Time deposits 25.58% 25.50% 25.16%
-----------------------------------------------
Total deposits 90.03% 89.03% 91.96%
Other borrowed funds 6.37% 7.39% 6.03%
Other net interest-free funding sources 3.60% 3.58% 2.01%
-----------------------------------------------
Total average funding sources 100.00% 100.00% 100.00%
===============================================
Loan mix:
Commercial/real estate loans 53.71% 53.02% 52.44%
Mortgage loans 14.67% 15.05% 14.82%
Direct consumer loans 18.14% 18.36% 19.67%
Indirect consumer loans 11.29% 11.33% 10.83%
Finance Company loans 2.19% 2.23% 2.24%
-----------------------------------------------
Total loans 100.00% 100.00% 100.00%
===============================================
Average dollars (in thousands):
Loans $2,776,229 $2,713,963 $2,477,971
Securities 1,350,505 1,320,529 1,287,487
Short-term investments 132,582 19,517 75,311
-----------------------------------------------
Earning average assets $4,259,316 $4,054,009 $3,840,769
Non-interest bearing deposits $701,144 $671,758 $622,271
Interest bearing transaction deposits 1,332,152 1,359,952 1,348,113
Interest bearing Public Fund deposits 711,789 543,584 595,311
Time deposits 1,089,367 1,033,974 966,215
-----------------------------------------------
Total deposits 3,834,452 3,609,268 3,531,911
Other borrowed funds 271,473 299,782 231,609
Other net interest-free funding sources 153,391 144,960 77,250
-----------------------------------------------
Total average funding sources $4,259,316 $4,054,009 $3,840,769
Loans:
Commercial/real estate loans $1,491,008 $1,439,074 $1,299,399
Mortgage loans 407,258 408,535 367,320
Direct consumer loans 503,700 498,336 487,452
Indirect consumer loans 313,542 307,413 268,311
Finance Company loans 60,720 60,604 55,488
-----------------------------------------------
Total average loans $2,776,229 $2,713,963 $2,477,971
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Hancock Holding Company - Add 10 -
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Three Months Ended
----------------------------------------------------------------------------------------------------
03/31/05 12/31/04 03/31/04
--------------------------------- -------------------------------- -------------------------------
Interest Volume Rate Interest Volume Rate Interest Volume Rate
--------------------------------- -------------------------------- -------------------------------
Average Earning Assets
Commercial & real estate
loans (TE) $22,303 $1,491,008 6.06% $21,365 $1,439,074 5.91% $17,925 $1,299,399 5.55%
Mortgage loans 5,697 407,258 5.60% 5,743 408,535 5.62% 5,196 367,320 5.66%
Consumer loans 16,409 877,963 7.58% 16,372 866,354 7.52% 15,816 811,252 7.84%
Loan fees & late charges 1,978 - 0.00% 2,452 - 0.00% 2,163 - 0.00%
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Total loans (TE) 46,387 2,776,229 6.76% 45,932 2,713,963 6.74% 41,100 2,477,971 6.66%
US treasury securities 60 11,058 2.20% (111) 11,439 3.87% 48 10,118 1.93%
US agency securities 4,285 430,408 3.98% 4,504 426,505 4.22% 3,783 371,647 4.07%
CMOs 2,686 267,037 4.02% 2,658 269,295 3.95% 3,038 319,916 3.80%
Mortgage backed securities 4,547 412,573 4.41% 4,124 387,881 4.25% 3,900 367,585 4.24%
Municipals (TE) 2,871 163,543 7.02% 2,955 165,400 7.15% 3,286 183,969 7.14%
Other securities 672 65,886 4.08% 884 60,008 5.89% 367 34,252 4.29%
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Total securities (TE) 15,122 1,350,505 4.48% 15,013 1,320,529 4.55% 14,422 1,287,487 4.48%
Fed funds sold 711 118,503 2.43% 64 12,003 2.13% 153 64,192 0.96%
Cds with banks 49 8,361 2.37% 42 7,514 2.22% 8 5,626 0.54%
Other short-term investments 32 5,718 2.26% - - 0.00% 13 5,493 0.97%
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Total short-term investments 792 132,582 2.42% 106 19,517 2.16% 174 75,311 0.93%
Average earning assets
yield (TE) $62,302 $4,259,316 5.90% $61,051 $4,054,009 6.00% $55,696 $3,840,769 5.82%
Interest-Bearing Liabilities
Interest-bearing transaction
deposits $1,921 $1,332,152 0.58% $2,040 $1,359,952 0.60% $2,074 $1,348,113 0.62%
Time deposits 9,360 1,089,367 3.48% 9,009 1,033,974 3.47% 8,168 966,215 3.40%
Public Funds 3,751 711,789 2.14% 2,515 543,584 1.84% 2,198 595,311 1.48%
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Total interest bearing
deposits 15,032 3,133,308 1.95% 13,564 2,937,510 1.84% 12,440 2,909,639 1.72%
Customer repos 664 214,878 1.25% 723 223,837 1.28% 338 169,830 0.80%
Other borrowings 593 56,595 4.25% 727 75,945 3.81% 692 61,779 4.51%
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Total borrowings 1,256 271,473 1.88% 1,450 299,782 1.92% 1,030 231,609 1.79%
Total interest bearing
liab cost $16,289 $3,404,781 1.94% $15,014 $3,237,291 1.85% $13,470 $3,141,248 1.72%
Noninterest-bearing deposits 701,144 671,758 622,271
Other net interest-free
funding sources 153,391 144,960 77,250
Total Cost of Funds $16,289 $4,259,316 1.55% $15,014 $4,054,009 1.47% $13,470 $3,840,769 1.41%
Net Interest Spread (TE) $46,013 3.96% $46,037 4.16% $42,226 4.10%
Net Interest Margin (TE) $46,013 $4,259,316 4.35% $46,037 $4,054,009 4.53% $42,226 $3,840,769 4.41%
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Hancock Holding Company - Add 11 -
Quarterly Financial Data
(amounts in thousands, except per share data)
(unaudited)
2003 2004 2005
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2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
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Per Common Share Data
Earnings per share:
Basic $0.38 $0.42 $0.48 $0.44 $0.50 $0.47 $0.49 $0.48
Diluted $0.37 $0.41 $0.46 $0.43 $0.50 $0.47 $0.48 $0.47
Cash dividends per share $0.105 $0.115 $0.115 $0.125 $0.125 $0.165 $0.165 $0.165
Book value per share (period end) $12.92 $12.81 $13.06 $13.75 $13.32 $14.16 $14.32 $14.16
Tangible book value per share (period end) $11.02 $10.92 $11.19 $11.58 $11.17 $12.03 $12.16 $11.99
Weighted average number of shares:
Basic 30,841 30,624 30,510 32,048 32,549 32,495 32,467 32,463
Diluted 33,484 33,298 33,288 33,018 33,042 33,054 33,078 33,019
Period-end number of shares 30,777 30,522 30,450 32,558 32,538 32,472 32,440 32,463
Market data:
High closing price $24.63 $25.85 $29.25 $32.00 $32.25 $34.27 $34.83 $34.20
Low closing price $21.00 $23.01 $24.68 $27.08 $25.00 $27.32 $30.00 $30.25
Period end closing price $23.38 $24.68 $27.29 $30.96 $29.06 $31.79 $33.46 $32.50
Trading volume 2,573 3,032 2,963 2,745 3,252 2,792 2,781 3,284
Other Period-end Data
FTE Headcount 1,789 1,751 1,734 1,717 1,754 1,731 1,767 1,766
Tangible common equity $338,819 $333,125 $340,583 $377,056 $363,451 $390,696 $394,389 $389,344
Tier I capital $367,068 $371,677 $378,262 $372,527 $381,428 $391,098 $399,320 $408,163
Goodwill $49,400 $49,100 $49,100 $59,281 $56,474 $56,474 $55,409 $55,409
Amortizable intangibles $6,168 $5,816 $5,376 $8,732 $11,410 $10,852 $12,263 $12,510
Mortgage servicing intangibles $3,088 $3,023 $2,755 $2,464 $2,171 $1,922 $2,520 $2,288
Performance Ratios
Return on average assets 1.20% 1.31% 1.47% 1.33% 1.49% 1.37% 1.39% 1.32%
Return on average common equity 12.42% 13.79% 15.21% 13.01% 14.97% 13.67% 13.54% 13.32%
Earning asset yield (TE) 5.95% 5.99% 5.96% 5.82% 5.83% 5.86% 6.00% 5.90%
Total cost of funds 1.58% 1.46% 1.42% 1.41% 1.43% 1.44% 1.47% 1.55%
Net interest margin (TE) 4.37% 4.54% 4.54% 4.41% 4.40% 4.42% 4.53% 4.35%
Non-interest expense as a percent
of total revenue (TE) before amortization
of purchased intangibles and
securities transactions 60.09% 57.90% 56.12% 60.17% 56.79% 57.55% 54.95% 59.99%
Average common equity as
a percent of average total assets 9.68% 9.49% 9.63% 10.24% 9.95% 10.00% 10.26% 9.94%
Leverage ratio 9.00% 9.10% 9.29% 8.73% 8.76% 8.86% 8.97% 8.75%
Tangible common equity to assets 8.31% 8.15% 8.32% 8.77% 8.27% 8.83% 8.58% 8.28%
Net charge-offs as a
percent of average loans 0.64% 0.52% 0.61% 0.45% 0.47% 0.45% 0.56% 0.33%
Allowance for loan losses as
a percent of period end loans 1.57% 1.54% 1.50% 1.49% 1.47% 1.45% 1.48% 1.48%
Allowance for loan losses to
NPAs + loans 90 days past due 138.95% 147.27% 169.73% 188.51% 211.55% 225.17% 251.85% 323.66%
Provision for loan losses to net charge-offs 114.43% 133.92% 113.59% 126.92% 126.52% 114.34% 150.98% 122.13%
Loan/Deposit Ratio 63.38% 66.78% 70.10% 70.16% 70.13% 73.07% 75.19% 72.40%
Non-interest income excluding
securities transactions, as a percent
of total revenue (TE) 29.10% 30.70% 31.40% 34.75% 35.93% 31.98% 32.37% 32.77%
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Hancock Holding Company - Add 12 -
Quarterly Financial Data
(amounts in thousands, except per share data)
(unaudited)
2003 2004 2005
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2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
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Asset Quality Information
Non-accrual loans $16,860 $13,988 $12,161 $9,670 $10,134 $7,770 $7,480 $6,335
Foreclosed assets 5,685 6,187 5,809 5,212 4,270 4,151 3,513 3,591
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Total non-performing assets $22,545 $20,175 $17,970 $14,882 $14,404 $11,921 $10,993 $9,926
Non-performing assets as a percent of
loans and foreclosed assets 1.00% 0.86% 0.73% 0.59% 0.55% 0.44% 0.40% 0.36%
Accruing Loans 90 days past due $2,817 $4,439 $3,682 $5,011 $3,701 $5,277 $5,160 $2,798
Accruing Loans 90 days past due as
a percent of loans 0.13% 0.19% 0.15% 0.20% 0.14% 0.20% 0.19% 0.10%
Non-performing assets + accruing loans
90 days past due to loans and
foreclosed assets 1.12% 1.05% 0.88% 0.79% 0.69% 0.64% 0.59% 0.46%
Net charge-offs $3,466 $2,978 $3,680 $2,786 $3,017 $2,963 $3,839 $2,260
Net charge-offs as
a percent of average loans 0.64% 0.52% 0.61% 0.45% 0.47% 0.45% 0.56% 0.33%
Allowance for loan losses $35,240 $36,250 $36,750 $37,500 $38,300 $38,725 $40,682 $41,182
Allowance for loan losses as a
percent of period end loans 1.57% 1.54% 1.50% 1.49% 1.47% 1.45% 1.48% 1.48%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 138.95% 147.27% 169.73% 188.51% 211.55% 225.17% 251.85% 323.66%
Provision for loan losses $3,966 $3,988 $4,180 $3,536 $3,817 $3,388 $5,796 $2,760
Provision for loan losses to net
charge-offs 114.43% 133.92% 113.59% 126.92% 126.52% 114.34% 150.98% 122.13%
Net Charge-Off Information
Net charge-offs:
Commercial/real estate loans $1,605 $880 $599 $1,159 $788 $734 $1,003 $770
Mortgage loans 4 - 74 (1) (26) (22) 38 68
Direct consumer loans 1,094 1,094 1,583 637 1,182 1,222 1,173 501
Indirect consumer loans 334 637 576 442 572 402 910 540
Finance company loans 429 367 848 549 501 627 715 381
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Total net charge-offs $3,466 $2,978 $3,680 $2,786 $3,017 $2,963 $3,839 $2,260
Average loans:
Commercial/real estate loans $1,100,310 $1,159,338 $1,237,715 $1,299,399 $1,352,432 $1,396,149 $1,439,074 $1,491,008
Mortgage loans 329,534 359,563 361,715 367,320 391,270 400,710 408,535 407,258
Direct consumer loans 494,880 492,307 491,340 487,452 483,150 487,139 498,336 503,700
Indirect consumer loans 198,917 225,199 248,817 268,311 279,230 296,755 307,413 313,542
Finance Company loans 49,164 52,509 54,598 55,488 57,829 59,935 60,604 60,720
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Total average loans $2,172,805 $2,288,917 $2,394,185 $2,477,971 $2,563,910 $2,640,689 $2,713,963 $2,776,229
Net charge-offs to average loans:
Commercial/real estate loans 0.59% 0.30% 0.19% 0.36% 0.23% 0.21% 0.28% 0.21%
Mortgage loans 0.00% 0.00% 0.08% 0.00% -0.03% -0.02% 0.04% 0.07%
Direct consumer loans 0.89% 0.88% 1.28% 0.53% 0.98% 1.00% 0.94% 0.40%
Indirect consumer loans 0.67% 1.12% 0.92% 0.66% 0.82% 0.54% 1.18% 0.70%
Finance Company loans 3.50% 2.77% 6.16% 3.98% 3.48% 4.16% 4.69% 2.54%
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Total net charge-offs to average loans 0.64% 0.52% 0.61% 0.45% 0.47% 0.45% 0.56% 0.33%
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Hancock Holding Company - Add 13 -
Quarterly Financial Data
(amounts in thousands, except per share data)
(unaudited)
2003 2004 2005
------------------------------------------------------------------------------
2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
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Income Statement
Interest income $54,627 $55,208 $54,697 $53,842 $56,318 $57,424 $59,190 $60,531
Interest income (TE) 56,400 56,975 56,464 55,696 58,115 59,184 61,051 62,302
Interest expense 14,963 13,889 13,529 13,470 14,218 14,567 15,014 16,289
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Net interest income (TE) 41,438 43,087 42,936 42,226 43,897 44,617 46,037 46,013
Provision for loan losses 3,966 3,988 4,180 3,536 3,817 3,388 5,796 2,760
Non-interest income excluding gain on
sale of branches and securities transactions 17,002 19,091 19,657 20,231 21,619 20,973 22,037 22,427
Gains on sale of branches & credit card merchant - - - 2,258 3,000 - - -
Securities transactions gains/(losses) 659 0 553 149 11 (2) 4 7
Non-interest expense 35,297 36,352 35,568 39,262 39,437 38,306 37,945 41,642
Income before income taxes 18,063 20,071 21,630 20,212 23,476 22,134 22,475 22,273
Income tax expense 5,681 6,409 6,382 6,068 7,104 6,737 6,684 6,836
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Net income 12,382 13,662 15,248 14,144 16,372 15,396 15,791 15,438
Preferred dividends 663 663 663 - - - - -
------------------------------------------------------------------------------
Net income to common $11,719 $12,998 $14,585 $14,144 $16,372 $15,396 $15,791 $15,438
==============================================================================
Non-interest Income
and Operating Expense
Service charges on deposit accounts $10,202 $11,117 $11,071 $10,230 $10,771 $11,567 $11,062 $9,490
Trust fees 2,032 1,776 1,976 1,985 2,277 2,281 2,487 2,541
Debit card & merchant fees 1,091 882 870 861 1,042 1,197 1,172 1,030
Insurance fees 836 841 557 2,484 2,828 2,056 1,824 3,881
Investment & annuity fees 840 970 874 693 584 438 581 1,188
ATM fees 990 1,021 1,016 1,128 1,136 1,129 1,119 1,372
Secondary mortgage market operations (203) 710 582 385 531 529 1,489 499
Other income 1,216 1,774 2,712 2,465 2,450 1,776 2,302 2,426
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Non-interest income excluding gains on sale
of branches, credit card merchant and
securities transactions 17,004 19,091 19,657 20,231 21,619 20,973 22,037 22,427
Gains on sale of branches and credit card merchant 0 0 0 2,258 3,000 0 0 0
Securities transactions gains/(losses) 659 0 553 149 11 (2) 4 7
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Total non-interest income including gains on
sale of branches, credit card merchant and
securities transactions 17,663 19,091 20,209 22,638 24,631 20,971 22,041 22,433
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Personnel expense 20,705 21,290 19,242 22,896 21,137 20,664 21,706 22,379
Occupancy expense (net) 2,294 2,512 2,362 2,413 2,405 2,470 2,627 2,495
Equipment expense 2,221 2,459 2,331 2,326 2,376 2,419 2,548 2,357
Other operating expense 9,899 9,738 11,193 11,302 12,996 12,194 10,526 13,828
Amortization of intangibles 178 352 440 325 524 558 538 584
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Total non-interest expense $35,297 $36,352 $35,568 $39,262 $39,437 $38,306 $37,945 $41,642
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