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 October 13, 2005, Hancock Holding Company
issued a press release announcing its earnings for third quarter of 2005. 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 October 13, 2005, headed "Hancock Holding
Company Announces Earnings for Third Quarter 2005"
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: October 17, 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
- --------------------- --------------------
October 13, 2005 George A. Schloegel, Chief Executive Officer
Carl J. Chaney, Chief Financial Officer
Michael M. Achary, Treasurer
Paul D. Guichet, Investor Relations
228,563,7419 or 228.669.8394
- -------------------------------------------------------------------------------------------------------------------Hancock Holding Company Announces Earnings for Third Quarter 2005GULFPORT, MS (October 13, 2005) - Hancock Holding Company (NASDAQ: HBHC), today announced earnings for the third quarter of 2005. Net income for the third quarter totaled $1.44 million, compared to $15.40 million reported for the third quarter of 2004. Diluted earnings per share for the third quarter of 2005 were $0.04, compared to $0.47 for the third quarter of 2004. Net income for the first nine months of 2005 totaled $34.97 million, compared to $45.91 million reported for the first nine months of 2004. Diluted earnings per share for the first nine months of 2005 were $1.06 compared to $1.39 for the same period in 2004.
Hancock's third quarter earnings were significantly impacted by Hurricane Katrina which struck the coasts of Mississippi and Louisiana on August 29, 2005. While the total impact of this hurricane on Hancock's financial condition and results of operation may not be known for some time, the Company has included in third quarter earnings, certain charges, including the establishment of specific reserves, related to the hurricane. The pretax negative impact of Hurricane Katrina on Hancock's third quarter earnings totaled $26.71 million. The $26.71 million net pretax negative impact included the following items: $35.20 million (pretax) to establish a storm-related provision for credit losses, a $1.86 million charge (pretax) related to direct expenses incurred through September 30, 2005, and approximately $3.79 million (pretax) of fees and service charges that were waived to assist affected individuals and businesses. Also included in the $26.71 million impact was a pretax gain of $14.14 million on net expected property and casualty insurance proceeds.
Excluding the aforementioned impact of Hurricane Katrina, Hancock's third quarter 2005 earnings were $18.81 million, an increase of $3.41 million, or 22 percent, from the third quarter of 2004. Diluted earnings per share for the third quarter of 2005, excluding the hurricane's impact, were $0.57, an increase of $0.11, or 23 percent, from the same quarter a year ago. Compared to the second quarter of 2005, third quarter earnings, excluding the hurricane's impact, were up $.70 million, or 4 percent, with diluted earnings per share up $0.02, also a 4 percent increase.
The Company's third quarter return on average assets, excluding the impact of hurricane Katrina, was 1.56 percent, while the return on average equity was 15.41 percent. These returns were 4 and 14 basis points higher, respectively, than the second quarter of 2005.
In commenting on Hancock's operating results for the third quarter of 2005, George A. Schloegel, Chief Executive Officer, stated, "a significant part of Hancock's market area and customer base have been adversely impacted by Hurricane Katrina. Our deepest sympathy goes out to all affected by this storm. Our Hancock family has been profoundly impacted by the storm with nearly 200 of our associates losing homes and many of our banking facilities damaged or destroyed. However, the Company was able to open many of our Mississippi branches the day after the storm - several with flashlights and folding chairs. It is this kind of dedication and willpower by our associates that is present in the citizens of the Central Gulf Coast Region that we all call home. The re-building efforts literally began the day after the storm hit and Hancock is proud to be front and center to these efforts as we have in past storms."
The Company's balance sheet has already experienced significant growth since Hurricane Katrina impacted our market area. At September 30, 2005, Hancock had total loans of $2.98 billion and total deposits of $4.03 billion. From the period June 30, 2005 to September 30, 2005, total loans have grown $123 million and total deposits $172 million. The Company's growth continued into October and as of October 11, 2005, the Company's balance sheet has expanded by an additional $9 million of loans and $218 million of deposits. Overall total balance sheet growth between June 30, 2005 and October 11, 2005 consisted of $132 million of loans and $390 million of deposits. Leo W. Seal, Jr., President of Hancock Holding Company, added, "As was the case in 1969 after Hurricane Camille, Hancock is in the midst of an unprecedented period of growth as the Company's core values of strength, stability and service to our communities set us apart from our competition. Hancock was there for our customers after Hurricane Camille and we are here now in the aftermath of this storm."
Net Interest IncomeNet interest income (te) for the third quarter of 2005 increased $3.23 million, or 7 percent, from the third quarter of 2004, and was up $.04 million, or .1 percent, from the second quarter of 2005. The Company's net interest margin (te) was 4.40 percent in the third quarter of 2005, 2 basis points narrower than the same quarter a year ago and 2 basis points narrower than the previous quarter.
Compared to the same quarter a year ago, the primary driver of the $3.23 million increase in net interest income (te) was a $311 million, or 8 percent, increase in average earning assets mainly from average loan growth of $278 million, or 11 percent. Average deposit growth of $188 million, or 5 percent, along with an increase in other borrowings (mostly customer repurchase agreements) of $49 million, or 17 percent, funded the Company's loan growth and related increase in earning assets. The overall improvement in the earning asset mix enabled the Company to improve its loan to deposit ratio to approximately 77 percent in the third quarter of 2005. In addition, loans now comprise 67 percent of the Company's earning asset base, as compared to 66 percent for the same quarter a year ago. The net interest margin (te) narrowed 2 basis points as the increase in the earning asset yield (34 basis points) did not offset the increase in total funding costs (36 basis points).
The Company's level of net interest income (te) in the third quarter of 2005 was essentially flat with the prior quarter - up $.04 million, or .1 percent. Although the Company experienced significant loan growth in the third quarter with average loans increasing $83 million, average earning assets were up only $3.54 million, or .1 percent. The entire increase in average loans for the quarter was funded through reductions in the Company's securities portfolio (down $85 million from the previous quarter). Average deposits were down $49 million, compared to the prior quarter, as outflows of public funds totaling $65 million were experienced during the third quarter. The reduction in average deposits was mitigated, in part, by a $31 million increase in other borrowings. The net interest margin (te) narrowed 2 basis points from the prior quarter as the yield on average earning assets increased 11 basis points, while total funding costs were up 14 basis points. The higher overall cost of funds was due largely to a 46 basis point increase in the funding costs of the Company's $642 million public fund deposit base, most of which is indexed to short-term rates.
Asset-Liability ManagementThe Company's asset sensitive position and net interest income (te) forecast reflects active management of the deposit rate structure in response to rising rates and competitive pressures, but with a favorable mix to fund earning assets and manage interest rate risk. Management projects rate increases of 100 and 200 basis points would result in percentage increases in net interest income of 3.19 percent and 5.77 percent, respectively.
Interest rate risk continues to be effectively managed through a continued focus on loan and deposit mix. Deposit campaigns to fund loan growth are targeted on core deposit acquisition and specific time deposit durations. Funding is balanced between time deposits and transaction accounts. For the quarter, interest-bearing transaction accounts represented 35% of total deposits, consumer time deposits were 30%, and non-interest bearing deposits 19%. The commercial loan portfolio represents slightly more than half of all loans, and it is relatively equal in balance between variable and fixed rate lending.
Management of the securities portfolio compliments earnings and liquidity. The securities portfolio's effective duration was 2.68 as of September 30, 2005 versus 2.41 as of June 30, 2005. Loan growth requirements reduced the portfolio's average balance by 6 percent during the quarter; however, the portfolio's average yield (te) was relatively flat, down 1 basis point. Projected cash flows meet the Company's liquidity targets for the next 8 quarters.
Excluding the impact of net storm-related items (net gain on insurance and direct expenses incurred), non-interest income for the third quarter of 2005 was up $627,000, or 3 percent, compared to the same quarter a year ago. Non-interest income was down $3.10 million, or 13 percent, compared to the second quarter of 2005. The primary factors impacting the higher levels of non-interest income as compared to the same quarter a year ago, were higher levels of insurance fees (up $2.83 million) mostly related to the higher revenues associated with Magna Insurance Company, the Company's wholly owned insurance company and the July, 1, 2005 acquisition of J. Everett Eaves, Inc. In addition, investment and annuity income was up $866,000, when compared to the same quarter a year ago. However, service charges were down $3.59 million due mostly to waived return item fees as a result of accommodations to customers impacted by Hurricane Katrina. The decrease in non-interest income for the third quarter of 2005 (excluding the 2005 net storm-related items and securities transactions) compared to the prior quarter was primarily due to decreases in service charges on deposit accounts (down $2.48 million due to waivers of return items as a result of Hurricane Katrina) and other income (down $1.05 million) and partly offsetting these items were increased insurance fees (up $1.38 million).
Operating expenses for the third quarter of 2005 were $4.46 million higher, or 12 percent, compared to the same quarter a year ago and were $265,000 higher, or 1 percent, than the previous quarter. The increase from the same quarter a year ago was reflected in higher personnel expense (up $3.61 million) and higher expenses associated with Magna Insurance Company (up $1.21 million). The increase from the prior quarter was reflected in increased personnel expense (up $1.35 million) and higher Magna expenses ($815,000) partly offset by a lower level of other operating expenses (down $1.89 million).
The Company's efficiency ratio (expressed as operating expenses as a percent of total revenue (te) before securities transactions, amortization of purchased intangibles and net storm-related items) was 60.85 percent for the third quarter of 2005. This was compared to 57.55 percent for the same quarter a year ago, and 57.83 percent for the previous quarter. The Company's number of full-service banking facilities stands at 104 as of September 30, 2005 and the number of full-time equivalent employees was 1,590 at September 30, 2005, a decrease of 141 from one year ago - most of which was related to Hurricane Katrina.
Annualized net charge-offs as a percent of average loans for the third quarter of 2005 were 0.23 percent, compared to 0.24 percent for the second quarter of 2005. Compared to the third quarter of 2004, net charge-offs decreased $1.26 million, or 22 basis points (expressed as a percent of average loans). Net charge-offs increased $13,000, and were down 1 basis point (expressed as a percent of average loans) from the second quarter of 2005 and were reflected primarily in higher levels of charge-offs in direct consumer loans. The provision for loan losses in the third quarter of 2005 was $36.91 million, of which $35.20 million was related to the establishment of a storm-related provision for credit losses. This compares to the $1.89 million provision for the second quarter of 2005 and $3.39 million for the third quarter of 2004.
Non-performing assets as a percent of total loans and foreclosed assets was 0.45 percent at September 30, 2005, compared to 0.37 percent at June 30, 2005. Compared to the third quarter of 2004, the ratio of non-performing assets as a percent of total loans and foreclosed assets was up 1 basis point from the 0.44 percent reported at September 30, 2004. Non-performing assets increased $2.73 million from June 30, 2005, reflected primarily in higher levels of non-accrual loans. The composition of the Company's $13.35 million non-performing asset base continues to reflect significant granularity with only 11 credits or properties exceeding $250,000 and 146 credits/properties below $250,000. The Company's ratio of accruing loans 90 days or more past due to total loans was 0.21 percent at September 30, 2005, compared to 0.14 percent at June 30, 2005 and to 0.20 percent at September 30, 2004.
The Company's allowance for loan losses was $76.58 million at September 30, 2005, up $35.20 million from the $41.38 million reported at June 30, 2005, and was $37.86 million higher than the $38.72 million reported at September 30, 2004. The ratio of the allowance for loan losses as a percent of period-end loans was 2.57 percent at September 30, 2005, compared to 1.45 percent at June 30, 2005 and September 30, 2004. The allowance coverage ratio (allowance for loan losses to non-performers and past dues) was 393 percent in third quarter 2005, as compared to 225 percent in third quarter 2004, and 285 percent in second quarter 2005. As previously mentioned, the majority of the increase in the Company's allowance for loan losses was due to the establishment of a specific allowance for estimated credit losses related to the impact of Hurricane Katrina on Hancock's loan portfolio.
GeneralThe Company will provide a live overview of third quarter earnings, as well as an update on the impact of Hurricane Katrina, including special one- time charges related thereto, beginning at 1:00 p.m., Central Daylight Time, on Monday, October 17, 2005. Interested persons may access the event through the Company's website (www.hancockbank.com) and Vcall's Investor Calendar (www.investorcalendar.com). For those unable to attend the webcast, you may dial in and listen to the live conference call at (877) 407-0783 from within the U.S. or Canada, and (201) 689-8564 for international callers. A telephone replay will be available two hours following completion of the webcast. The replay is accessible to callers from the U.S. and Canada at (877) 660-6853 and to international callers at (201) 612-7415. Enter the account number: 286 and conference ID number 171714.
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 accounting principles generally accepted in the United States of America (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), Hancock Bank of Louisiana, Hancock Bank of Florida and Magna Insurance Company - has assets of $4.91 billion at September 30, 2005. Founded in 1899, Hancock Bank stands among the strongest, safest five-star financial institutions in America. Hancock Bank operates 104 Hancock full-service offices and more than 130 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.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about companies' anticipated future financial performance. This act provides a safe harbor for such disclosure, which protects the companies from unwarranted litigation if actual results are different from management expectations. This release contains forward-looking statements and reflects management's current views and estimates of future economic circumstances, industry conditions, company performance, and financial results. These forward-looking statements are subject to a number of factors and uncertainties which could cause the company's actual results and experience to differ from the anticipated results and expectations expressed in such forward-looking statements.
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Three Months Ended Nine Months Ended
-------------------------------------------- ----------------------------
9/30/2005 6/30/2005 9/30/2004 9/30/2005 9/30/2004
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Per Common Share Data
Earnings per share:
Basic $0.04 $0.56 $0.47 $1.08 $1.42
Diluted $0.04 $0.55 $0.47 $1.06 $1.39
Cash dividends per share $0.195 $0.165 $0.165 $0.525 $0.415
Book value per share (period-end) $14.52 $14.87 $14.16 $14.52 $14.16
Tangible book value per share (period-end) $12.25 $12.73 $12.03 $12.25 $12.03
Weighted average number of shares:
Basic 32,308 32,396 32,495 32,388 32,365
Diluted 32,940 32,928 33,054 32,959 33,039
Period-end number of shares 32,309 32,310 32,472 32,309 32,472
Market data:
High closing price $37.84 $34.87 $34.27 $37.84 $34.27
Low closing price $29.93 $28.25 $27.32 $28.25 $25.00
Period end closing price $34.14 $34.40 $31.79 $34.14 $31.79
Trading volume 8,760 3,527 2,792 15,575 8,789
Other Period-end Data
FTE Headcount 1,590 1,813 1,731 1,590 1,731
Tangible common equity $395,843 $411,203 $390,696 $395,843 $390,696
Tier I capital $407,075 $416,312 $391,098 $407,075 $391,098
Goodwill $61,428 $55,409 $56,474 $61,428 $56,474
Amortizable intangibles $9,928 $11,746 $10,852 $9,928 $10,852
Mortgage servicing intangibles $1,860 $2,082 $1,922 $1,860 $1,922
Common shares repurchased for publicly announced plans 11.8 96.1 84.3 147.9 236.1
Performance Ratios
Return on average assets 0.12% 1.52% 1.37% 0.98% 1.40%
Return on average common equity 1.18% 15.27% 13.67% 9.81% 13.88%
Earning asset yield (TE) 6.19% 6.08% 5.86% 6.06% 5.84%
Total cost of funds 1.80% 1.66% 1.44% 1.67% 1.43%
Net interest margin (TE) 4.40% 4.42% 4.42% 4.39% 4.41%
Non-interest expense as a percent of total revenue (TE)
before amortization of purchased intangibles, net
storm-related items,
gains on sale of branches and credit card merchant,
and securities transactions 60.85% 57.83% 57.55% 59.53% 59.72%
Average common equity as a percent of average total assets 10.13% 9.94% 10.00% 10.00% 10.06%
Leverage ratio 8.64% 8.83% 8.86% 8.64% 8.86%
Tangible common equity to assets 8.17% 8.71% 8.83% 8.17% 8.83%
Net charge-offs as a percent of average loans 0.23% 0.24% 0.45% 0.27% 0.46%
Allowance for loan losses as a percent of period end loans 2.57% 1.45% 1.45% 2.57% 1.45%
Allowance for loan losses to NPAs + accruing loans 90 days
past due 392.70% 284.75% 225.17% 392.70% 225.17%
Provision for loan losses to net charge-offs 2165.65% 111.83% 114.34% 734.87% 122.53%
Loan/Deposit Ratio 76.77% 73.63% 73.07% 74.28% 71.13%
Non-interest income excluding net storm-related items,
gains on sale of branches and credit card merchant,
and securities transactions as a percent of
total revenue (TE) 31.10% 34.06% 31.98% 32.66% 34.24%
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Three Months Ended Nine Months Ended
------------------------------------------ ----------------------------
9/30/2005 6/30/2005 9/30/2004 9/30/2005 9/30/2004
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Asset Quality Information
Non-accrual loans $10,373 $8,052 $7,770 $10,373 $7,770
Foreclosed assets 2,973 2,567 4,151 2,973 4,151
------------ -------------- -------------- -------------- -------------
Total non-performing assets $13,346 $10,619 $11,921 $13,346 $11,921
------------ -------------- -------------- -------------- -------------
Non-performing assets as a percent of loans
and foreclosed assets 0.45% 0.37% 0.44% 0.45% 0.44%
Accruing Loans 90 days past due $6,156 $3,914 $5,277 $6,156 $5,277
Accruing Loans 90 days past due as a percent of loans 0.21% 0.14% 0.20% 0.21% 0.20%
Non-performing assets + accruing loans 90 days past due
to loans and foreclosed assets 0.65% 0.51% 0.64% 0.65% 0.64%
Net charge-offs $1,704 $1,691 $2,963 $5,655 $8,766
Net charge-offs as a percent of average loans 0.23% 0.24% 0.45% 0.27% 0.46%
Allowance for loan losses $76,584 $41,382 $38,725 $76,584 $38,725
Allowance for loan losses as a percent of period
end loans 2.57% 1.45% 1.45% 2.57% 1.45%
Allowance for loan losses to NPAs + accruing loans
90 days past due 392.70% 284.75% 225.17% 392.70% 225.17%
Provision for loan losses $36,905 $1,891 $3,388 $41,556 $10,741
Provision for loan losses to net charge-offs 2165.65% 111.83% 114.34% 734.87% 122.53%
Allowance for Loan Losses
Beginning Balance $41,382 $41,182 $38,300 $40,682 $36,750
Provision for loan loss 36,905 1,891 3,388 41,556 10,741
Charge-offs 3,699 3,539 4,481 11,264 14,866
Recoveries 1,995 1,848 1,518 5,609 6,100
------------ -------------- -------------- -------------- -------------
Net charge-offs 1,704 1,691 2,963 5,655 8,766
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Ending Balance $76,584 $41,382 $38,725 $76,584 $38,725
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Net Charge-Off Information
Net charge-offs:
Commercial/real estate loans ($17) $202 $734 $955 $2,682
Mortgage loans 7 (5) (22) 70 (49)
Direct consumer loans 861 491 1,222 1,853 3,040
Indirect consumer loans 342 538 402 1,420 1,417
Finance company loans 511 465 627 1,357 1,676
------------ -------------- -------------- -------------- -------------
Total net charge-offs $1,704 $1,691 $2,963 $5,655 $8,766
Average loans:
Commercial/real estate loans $1,584,244 $1,523,348 $1,396,149 $1,533,208 $1,349,498
Mortgage loans 430,615 417,307 400,710 418,479 386,485
Direct consumer loans 504,362 509,628 487,139 505,899 485,918
Indirect consumer loans 335,482 323,100 296,755 324,122 281,488
Finance Company loans 64,006 62,124 59,935 62,295 57,759
------------ -------------- -------------- -------------- -------------
Total average loans $2,918,709 $2,835,506 $2,640,689 $2,844,003 $2,561,148
Net charge-offs to average loans:
Commercial/real estate loans 0.00% 0.05% 0.21% 0.08% 0.27%
Mortgage loans 0.01% 0.00% -0.02% 0.02% -0.02%
Direct consumer loans 0.68% 0.39% 1.00% 0.49% 0.84%
Indirect consumer loans 0.40% 0.67% 0.54% 0.59% 0.67%
Finance Company loans 3.17% 3.00% 4.16% 2.91% 3.88%
------------ -------------- -------------- -------------- -------------
Total net charge-offs to average loans 0.23% 0.24% 0.45% 0.27% 0.46%
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Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Three Months Ended Nine Months Ended
------------------------------------------ ----------------------------
9/30/2005 6/30/2005 9/30/2004 9/30/2005 9/30/2004
------------ -------------- -------------- -------------- -------------
Income Statement
Interest income $65,644 $64,027 $57,424 $190,202 $167,584
Interest income (TE) 67,506 65,767 59,184 195,576 172,996
Interest expense 19,659 17,961 14,567 53,908 42,255
------------ -------------- -------------- -------------- -------------
Net interest income (TE) 47,847 47,807 44,617 141,667 130,740
Provision for loan losses 36,905 1,891 3,388 41,556 10,741
Non-interest income excluding net storm-related
items, gains on sale of branches and credit card
merchant and securities transactions 21,600 24,695 20,973 68,722 62,823
Net storm-related items (Net gain on insurance less
direct expenses incurred) 12,276 - - 12,276 -
Gains on sale of branches and credit card merchant - - - - 5,258
Securities transactions gains/(losses) (18) (15) (2) (26) 159
Non-interest expense 42,770 42,505 38,306 126,917 117,005
------------ -------------- -------------- -------------- -------------
Income before income taxes 168 26,350 22,134 48,791 65,822
Income tax expense (benefit) (1,267) 8,256 6,737 13,824 19,909
------------ -------------- -------------- -------------- -------------
Net income $1,435 $18,094 $15,396 $34,968 $45,913
============ ============== ============== ============== =============
Non-interest Income and Operating Expense
Service charges on deposit accounts $7,975 $10,459 $11,567 $27,924 $32,568
Trust fees 2,761 2,859 2,281 8,161 6,544
Debit card & merchant fees 1,055 1,074 1,197 3,160 3,100
Insurance fees 4,883 3,499 2,056 12,262 7,369
Investment & annuity fees 1,304 1,547 438 4,039 1,714
ATM fees 871 1,154 1,129 3,397 3,393
Secondary mortgage market operations 377 676 529 1,552 1,445
Other income 2,374 3,428 1,776 8,228 6,691
------------ -------------- -------------- -------------- -------------
Non-interest income excluding net storm-related
items, gains on sale of branches and credit card
merchant and securities transactions 21,600 24,695 20,973 68,722 62,823
Net storm-related items (Net gain on insurance less
direct expenses incurred) 12,276 - - 12,276 -
Gains on sale of branches and credit card merchant - - - - 5,258
Securities transactions gains/(losses) (18) (15) (2) (26) 159
------------ -------------- -------------- -------------- -------------
Total non-interest income including net storm-related
items, gains on sale of branches and credit card
merchant, and securities transactions 33,858 24,680 20,971 80,972 68,240
------------ -------------- -------------- -------------- -------------
Personnel expense 24,275 22,925 20,664 69,579 64,698
Occupancy expense (net) 2,617 2,576 2,470 7,688 7,288
Equipment expense 2,319 2,366 2,419 7,042 7,121
Other operating expense 13,044 14,059 12,194 40,931 36,492
Amortization of intangibles 514 578 558 1,676 1,407
------------ -------------- -------------- -------------- -------------
Total non-interest expense $42,770 $42,505 $38,306 $126,917 $117,005
------------ -------------- -------------- -------------- -------------
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Three Months Ended Nine Months Ended
------------------------------------------- ----------------------------
9/30/2005 6/30/2005 9/30/2004 9/30/2005 9/30/2004
------------- -------------- -------------- -------------- -------------
Period-end Balance Sheet
Commercial/real estate loans $1,637,011 $1,539,576 $1,414,104 $1,637,011 $1,414,104
Mortgage loans 441,512 424,725 404,697 441,512 404,697
Direct consumer loans 501,704 504,119 495,357 501,704 495,357
Indirect consumer loans 339,822 329,535 302,897 339,822 302,897
Finance Company loans 64,121 63,450 60,436 64,121 60,436
------------- -------------- -------------- -------------- -------------
Total loans 2,984,170 2,861,405 2,677,490 2,984,170 2,677,490
Securities 1,323,166 1,387,477 1,349,594 1,323,166 1,349,594
Short-term investments 141,270 84,453 7,403 141,270 7,403
------------- -------------- -------------- -------------- -------------
Earning assets 4,448,606 4,333,334 4,034,487 4,448,606 4,034,487
------------- -------------- -------------- -------------- -------------
Allowance for loan losses (76,584) (41,382) (38,725) (76,584) (38,725)
Other assets 541,467 497,113 495,887 541,467 495,887
------------- -------------- -------------- -------------- -------------
Total assets $4,913,490 $4,789,065 $4,491,649 $4,913,490 $4,491,649
============= ============== ============== ============== =============
Non-interest bearing deposits $909,585 $728,001 $650,484 $909,585 $650,484
Interest bearing transaction deposits 1,369,886 1,303,152 1,358,262 1,369,886 1,358,262
Interest bearing Public Fund deposits 574,603 702,099 569,627 574,603 569,627
Time deposits 1,171,080 1,119,761 1,023,932 1,171,080 1,023,932
------------- -------------- -------------- -------------- -------------
Total interest bearing deposits 3,115,568 3,125,012 2,951,821 3,115,568 2,951,821
------------- -------------- -------------- -------------- -------------
Total deposits 4,025,153 3,853,013 3,602,304 4,025,153 3,602,304
Other borrowed funds 249,228 301,004 286,956 249,228 286,956
Other liabilities 170,049 154,608 142,445 170,049 142,445
Preferred stock - - - - -
Common shareholders' equity 469,059 480,440 459,943 469,059 459,943
------------- -------------- -------------- -------------- -------------
Total liabilities, preferred stock & common equity $4,913,490 $4,789,065 $4,491,649 $4,913,490 $4,491,649
============= ============== ============== ============== =============
Average Balance Sheet
Commercial/real estate loans $1,584,244 $1,523,348 $1,396,149 $1,533,208 $1,349,498
Mortgage loans 430,615 417,307 400,710 418,479 386,485
Direct consumer loans 504,362 509,628 487,139 505,899 485,918
Indirect consumer loans 335,482 323,100 296,755 324,122 281,488
Finance Company loans 64,006 62,124 59,935 62,295 57,759
------------- -------------- -------------- -------------- -------------
Total loans 2,918,709 2,835,506 2,640,689 2,844,003 2,561,148
Securities 1,364,219 1,449,554 1,368,701 1,388,143 1,353,685
Short-term investments 52,933 47,260 15,667 77,300 40,080
------------- -------------- -------------- -------------- -------------
Earning average assets 4,335,861 4,332,320 4,025,057 4,309,446 3,954,913
------------- -------------- -------------- -------------- -------------
Allowance for loan losses (41,765) (41,185) (38,455) (41,217) (37,753)
Other assets 487,867 490,668 495,787 496,811 474,770
------------- -------------- -------------- -------------- -------------
Total assets $4,781,962 $4,781,803 $4,482,388 $4,765,041 $4,391,930
============= ============== ============== ============== =============
Non-interest bearing deposits $729,216 $730,570 $654,780 $720,413 $642,836
Interest bearing transaction deposits 1,311,779 1,319,606 1,370,508 1,321,105 1,360,280
Interest bearing Public Fund deposits 617,017 683,665 556,300 670,477 584,568
Time deposits 1,143,691 1,116,973 1,032,267 1,116,876 1,012,857
------------- -------------- -------------- -------------- -------------
Total interest bearing deposits 3,072,488 3,120,245 2,959,075 3,108,457 2,957,705
------------- -------------- -------------- -------------- -------------
Total deposits 3,801,704 3,850,815 3,613,856 3,828,870 3,600,541
Other borrowed funds 335,758 304,637 286,629 304,192 253,897
Other liabilities 160,232 151,217 133,831 155,437 92,705
Preferred stock - - - - 2,992
Common shareholders' equity 484,269 475,134 448,072 476,542 441,795
------------- -------------- -------------- -------------- -------------
Total liabilities, preferred stock & common equity $4,781,962 $4,781,803 $4,482,388 $4,765,041 $4,391,930
============= ============== ============== ============== =============
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Three Months Ended Nine Months Ended
-------------------------------------------- -----------------------------
9/30/2005 6/30/2005 9/30/2004 9/30/2005 9/30/2004
-------------- -------------- -------------- -------------- --------------
Average Balance Sheet Mix
Percentage of earning assets/funding sources:
Loans 67.32% 65.45% 65.61% 65.99% 64.76%
Securities 31.46% 33.46% 34.00% 32.21% 34.23%
Short-term investments 1.22% 1.09% 0.39% 1.79% 1.01%
-------------- -------------- -------------- -------------- --------------
Earning average assets 100.00% 100.00% 100.00% 100.00% 100.00%
============== ============== ============== ============== ==============
Non-interest bearing deposits 16.82% 16.86% 16.27% 16.72% 16.25%
Interest bearing transaction deposits 30.25% 30.46% 34.05% 30.66% 34.39%
Interest bearing Public Fund deposits 14.23% 15.78% 13.82% 15.56% 14.78%
Time deposits 26.38% 25.78% 25.65% 25.92% 25.61%
-------------- -------------- -------------- -------------- --------------
Total deposits 87.68% 88.89% 89.78% 88.85% 91.04%
Other borrowed funds 7.74% 7.03% 7.12% 7.06% 6.42%
Other net interest-free funding sources 4.58% 4.08% 3.09% 4.09% 2.54%
-------------- -------------- -------------- -------------- --------------
Total average funding sources 100.00% 100.00% 100.00% 100.00% 100.00%
============== ============== ============== ============== ==============
Loan mix:
Commercial/real estate loans 54.28% 53.72% 52.87% 53.91% 52.69%
Mortgage loans 14.75% 14.72% 15.17% 14.71% 15.09%
Direct consumer loans 17.28% 17.97% 18.45% 17.79% 18.97%
Indirect consumer loans 11.49% 11.39% 11.24% 11.40% 10.99%
Finance Company loans 2.19% 2.19% 2.27% 2.19% 2.26%
-------------- -------------- -------------- -------------- --------------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
============== ============== ============== ============== ==============
Average dollars (in thousands):
Loans $2,918,709 $2,835,506 $2,640,689 $2,844,003 $2,561,148
Securities 1,364,219 1,449,554 1,368,701 1,388,143 1,353,685
Short-term investments 52,933 47,260 15,667 77,300 40,080
-------------- -------------- -------------- -------------- --------------
Earning average assets $4,335,861 $4,332,320 $4,025,057 $4,309,446 $3,954,913
Non-interest bearing deposits $729,216 $730,570 $654,780 $720,413 $642,836
Interest bearing transaction deposits 1,311,779 1,319,606 1,370,508 1,321,105 1,360,280
Interest bearing Public Fund deposits 617,017 683,665 556,300 670,477 584,568
Time deposits 1,143,691 1,116,973 1,032,267 1,116,876 1,012,857
-------------- -------------- -------------- -------------- --------------
Total deposits 3,801,704 3,850,815 3,613,856 3,828,870 3,600,541
Other borrowed funds 335,758 304,637 286,629 304,192 253,897
Other net interest-free funding sources 198,399 176,868 124,572 176,384 100,475
-------------- -------------- -------------- -------------- --------------
Total average funding sources $4,335,861 $4,332,320 $4,025,057 $4,309,446 $3,954,913
Loans:
Commercial/real estate loans $1,584,244 $1,523,348 $1,396,149 $1,533,208 $1,349,498
Mortgage loans 430,615 417,307 400,710 418,479 386,485
Direct consumer loans 504,362 509,628 487,139 505,899 485,918
Indirect consumer loans 335,482 323,100 296,755 324,122 281,488
Finance Company loans 64,006 62,124 59,935 62,295 57,759
-------------- -------------- -------------- -------------- --------------
Total average loans $2,918,709 $2,835,506 $2,640,689 $2,844,003 $2,561,148
-------------- -------------- -------------- -------------- --------------
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Three Months Ended
------------------------------------------------------------------------------------------
09/30/05 06/30/05 09/30/04
------------------------------ ------------------------------ ----------------------------
Interest Volume Rate Interest Volume Rate Interest Volume Rate
--------- ------------ ------- ---------- ----------- ------- -------- ----------- -------
Average Earning Assets
Commercial & real estate loans (TE) $25,770 $1,584,244 6.46% $23,775 $1,523,348 6.26% $19,650 $1,396,149 5.60%
Mortgage loans 5,921 430,615 5.50% 5,886 417,307 5.64% 5,753 400,710 5.74%
Consumer loans 17,772 903,850 7.80% 17,018 894,852 7.63% 15,991 843,830 7.54%
Loan fees & late charges 2,183 - 0.00% 2,348 - 0.00% 2,179 - 0.00%
--------- ------------ ------- ---------- ----------- ------- -------- ----------- -------
Total loans (TE) 51,646 2,918,709 7.03% 49,028 2,835,506 6.93% 43,573 2,640,689 6.57%
US treasury securities 62 11,296 2.17% 61 11,076 2.20% 149 11,391 5.19%
US agency securities 4,834 464,450 4.16% 4,977 484,119 4.11% 4,757 445,886 4.27%
CMOs 2,251 229,934 3.92% 2,608 262,799 3.97% 2,815 285,862 3.94%
Mortgage backed securities 4,773 436,733 4.37% 5,170 468,239 4.42% 4,388 399,959 4.39%
Municipals (TE) 2,792 160,502 6.96% 2,841 162,467 6.99% 3,030 169,812 7.14%
Other securities 733 61,304 4.78% 785 60,853 5.16% 434 55,790 3.11%
--------- ------------ ------- ---------- ----------- ------- -------- ----------- -------
Total securities (TE) 15,444 1,364,219 4.53% 16,441 1,449,554 4.54% 15,572 1,368,701 4.55%
Fed funds sold 409 44,535 3.65% 283 39,055 2.91% 27 7,807 1.36%
Cds with banks 6 8,398 0.30% 15 8,205 0.76% 13 7,860 0.66%
Other short-term investments - - 0.00% - - 0.00% - - 0.00%
--------- ------------ ------- ---------- ----------- ------- -------- ----------- -------
Total short-term investments 416 52,933 3.12% 299 47,260 2.53% 40 15,667 1.01%
Average earning assets yield (TE) $67,506 $4,335,861 6.19% $65,767 $4,332,320 6.08% $59,184 $4,025,057 5.86%
Interest-Bearing Liabilities
Interest-bearing transaction deposits $2,317 $1,311,779 0.70% $2,129 $1,319,606 0.65% $2,067 $1,370,508 0.60%
Time deposits 10,222 1,143,691 3.55% 9,570 1,116,973 3.44% 8,971 1,032,267 3.46%
Public Funds 4,740 617,017 3.05% 4,408 683,665 2.59% 2,295 556,300 1.64%
--------- ------------ ------- ---------- ----------- ------- -------- ----------- -------
Total interest bearing deposits 17,279 3,072,488 2.23% 16,106 3,120,245 2.07% 13,333 2,959,075 1.79%
Customer repos 1,467 248,505 2.34% 1,095 231,456 1.90% 532 212,573 1.00%
Other borrowings 913 87,253 4.15% 759 73,181 4.16% 702 74,057 3.77%
--------- ------------ ------- ---------- ----------- ------- -------- ----------- -------
Total borrowings 2,380 335,758 2.81% 1,854 304,637 2.44% 1,234 286,629 1.71%
Total interest bearing liab cost $19,659 $3,408,246 2.29% $17,961 $3,424,882 2.10% $14,567 $3,245,705 1.79%
Noninterest-bearing deposits 729,216 730,570 654,780
Other net interest-free funding sources 198,399 176,868 124,572
Total Cost of Funds $19,659 $4,335,861 1.80% $17,961 $4,332,320 1.66% $14,567 $4,025,057 1.44%
Net Interest Spread (TE) $47,847 3.91% $47,807 3.98% $44,617 4.08%
Net Interest Margin (TE) $47,847 $4,335,861 4.40% $47,807 $4,332,320 4.42% $44,617 $4,025,057 4.42%
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Nine Months Ended
---------------------------------------------------------------------
9/30/2005 9/30/2004
-------------------------------- -----------------------------------
Interest Volume Rate Interest Volume Rate
----------- ----------- ------- ---------- ---------- ---------
Average Earning Assets
Commercial & real estate loans (TE) $71,847 $1,533,208 6.26% $56,185 $1,349,498 5.56%
Mortgage loans 17,504 418,479 5.58% 16,538 386,485 5.71%
Consumer loans 51,200 892,316 7.67% 47,458 825,165 7.68%
Loan fees & late charges 6,510 - 0.00% 6,755 - 0.00%
----------- ----------- ------- ---------- ---------- ---------
Total loans (TE) 147,061 2,844,003 6.91% 126,936 2,561,148 6.62%
US treasury securities 182 11,144 2.19% 312 10,857 3.84%
US agency securities 14,096 459,784 4.09% 13,250 424,328 4.16%
CMOs 7,546 253,121 3.97% 8,857 305,801 3.86%
Mortgage backed securities 14,490 439,270 4.40% 12,582 390,539 4.30%
Municipals (TE) 8,504 162,160 6.99% 9,416 175,975 7.13%
Other securities 2,189 62,664 4.66% 1,365 46,185 3.94%
----------- ----------- ------- ---------- ---------- ---------
Total securities (TE) 47,008 1,388,143 4.52% 45,782 1,353,685 4.51%
Fed funds sold 1,404 67,093 2.80% 232 31,106 1.00%
Cds with banks 71 8,322 1.14% 32 7,150 0.60%
Other short-term investments 32 1,885 2.26% 13 1,824 0.97%
----------- ----------- ------- ---------- ---------- ---------
Total short-term investments 1,507 77,300 2.61% 277 40,080 0.92%
Average earning assets yield (TE) $195,576 $4,309,446 6.06% $172,996 $3,954,913 5.84%
Interest-Bearing Liabilities
Interest-bearing transaction deposits $6,367 $1,321,105 0.64% $6,151 $1,360,280 0.60%
Time deposits 29,151 1,116,876 3.49% 26,047 1,012,857 3.44%
Public Funds 12,900 670,477 2.57% 6,808 584,568 1.56%
----------- ----------- ------- ---------- ---------- ---------
Total interest bearing deposits 48,417 3,108,457 2.08% 39,006 2,957,705 1.76%
Customer repos 3,226 231,736 1.86% 1,186 185,946 0.85%
Other borrowings 2,265 72,455 4.18% 2,063 67,951 4.06%
----------- ----------- ------- ---------- ---------- ---------
Total borrowings 5,491 304,192 2.41% 3,249 253,897 1.71%
Total interest bearing liab cost $53,908 $3,412,649 2.11% $42,255 $3,211,602 1.76%
Noninterest-bearing deposits 720,413 642,836
Other net interest-free funding sources 176,384 100,475
Total Cost of Funds $53,908 $4,309,446 1.67% $42,255 $3,954,913 1.43%
Net Interest Spread (TE) $141,667 3.95% $130,740 4.08%
Net Interest Margin (TE) $141,667 $4,309,446 4.39% $130,740 $3,954,913 4.41%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2003 2004 2005
-------- ---------------------------------------- -------------------------------
4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
-------- -------- ------- --------- --------- --------- --------- --------
Per Common Share Data
Earnings per share:
Basic $0.48 $0.44 $0.50 $0.47 $0.49 $0.48 $0.56 $0.04
Diluted $0.46 $0.43 $0.50 $0.47 $0.48 $0.47 $0.55 $0.04
Cash dividends per share $0.115 $0.125 $0.125 $0.165 $0.165 $0.165 $0.165 $0.195
Book value per share (period-end) $13.06 $13.75 $13.32 $14.16 $14.32 $14.16 $14.87 $14.52
Tangible book value per share (period-end) $11.19 $11.58 $11.17 $12.03 $12.16 $11.99 $12.73 $12.25
Weighted average number of shares:
Basic 30,510 32,048 32,549 32,495 32,467 32,463 32,396 32,308
Diluted 33,288 33,018 33,042 33,054 33,076 33,019 32,928 32,940
Period-end number of shares 30,450 32,558 32,538 32,472 32,440 32,463 32,310 32,309
Market data:
High closing price $29.25 $32.00 $32.25 $34.27 $34.83 $34.20 $34.87 $37.84
Low closing price $24.68 $27.08 $25.00 $27.32 $30.00 $30.25 $28.25 $29.93
Period end closing price $27.29 $30.96 $29.06 $31.79 $33.46 $32.50 $34.40 $34.14
Trading volume 2,963 2,745 3,252 2,792 2,781 3,286 3,527 8,760
Other Period-end Data
FTE Headcount 1,734 1,719 1,754 1,731 1,767 1,766 1,813 1,590
Tangible common equity $340,583 $377,056 $363,451 $390,696 $394,389 $389,344 $411,203 $395,843
Tier I capital $378,262 $372,527 $381,428 $391,098 $399,320 $408,163 $416,312 $407,075
Goodwill $49,100 $59,281 $56,474 $56,474 $55,409 $55,409 $55,409 $61,428
Amortizable intangibles $5,376 $8,732 $11,410 $10,852 $12,263 $12,510 $11,746 $9,928
Mortgage servicing intangibles $2,755 $2,464 $2,171 $1,922 $2,520 $2,288 $2,082 $1,860
Common shares repurchased for publicly
announced plans 63.1 51.8 100.0 84.3 0.0 40.0 96.1 11.8
Performance Ratios
Return on average assets 1.47% 1.33% 1.49% 1.37% 1.39% 1.32% 1.52% 0.12%
Return on average common equity 15.21% 13.01% 14.97% 13.67% 13.54% 13.32% 15.27% 1.18%
Earning asset yield (TE) 5.96% 5.82% 5.83% 5.86% 6.00% 5.90% 6.08% 6.19%
Total cost of funds 1.42% 1.41% 1.43% 1.44% 1.47% 1.55% 1.66% 1.80%
Net interest margin (TE) 4.54% 4.41% 4.40% 4.42% 4.53% 4.35% 4.42% 4.40%
Non-interest expense as a percent
of total revenue (TE) before
amortization of purchased intangibles,
storm-related items, gains on sale of
branches and credit card merchant and
securities transactions 56.12% 60.17% 56.79% 57.55% 54.95% 59.99% 57.83% 60.85%
Average common equity as
a percent of average total assets 9.63% 10.24% 9.95% 10.00% 10.26% 9.94% 9.94% 10.13%
Leverage ratio 9.29% 8.73% 8.76% 8.86% 8.97% 8.75% 8.83% 8.64%
Tangible common equity to assets 8.32% 8.77% 8.27% 8.83% 8.58% 8.28% 8.71% 8.17%
Net charge-offs as a
percent of average loans 0.61% 0.45% 0.47% 0.45% 0.56% 0.33% 0.24% 0.23%
Allowance for loan losses as
a percent of period end loans 1.50% 1.49% 1.47% 1.45% 1.48% 1.48% 1.45% 2.57%
Allowance for loan losses to
NPAs + loans 90 days past due 169.73% 188.51% 211.55% 225.17% 251.85% 323.66% 284.75% 392.70%
Provision for loan losses to net charge-offs 113.59% 126.92% 126.52% 114.34% 150.98% 122.13% 111.83% 2165.65%
Loan/Deposit Ratio 70.10% 70.16% 70.13% 73.07% 75.19% 72.40% 73.63% 76.77%
Non-interest income excluding
net storm-related items, gains on sale of
branches and credit card merchant and
securities transactions as a percent
of total revenue (TE) 31.40% 34.75% 35.93% 31.98% 32.37% 32.77% 34.06% 31.10%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2003 2004 2005
----------- ------------------------------------------------- ----------------------------------
4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
----------- ------------ ------------ ----------- ----------- ----------- ---------- -----------
Asset Quality Information
Non-accrual loans $12,161 $9,670 $10,134 $7,770 $7,480 $6,335 $8,052 $10,373
Foreclosed assets 5,809 5,212 4,270 4,151 3,513 3,591 2,567 2,973
----------- ------------ ------------ ----------- ----------- ----------- ---------- -----------
Total non-performing assets $17,970 $14,882 $14,404 $11,921 $10,993 $9,926 $10,619 $13,346
Non-performing assets as a percent
of loans and foreclosed assets 0.73% 0.59% 0.55% 0.44% 0.40% 0.36% 0.37% 0.45%
Accruing Loans 90 days past due $3,682 $5,011 $3,701 $5,277 $5,160 $2,798 $3,914 $6,156
Accruing Loans 90 days past due as
a percent of loans 0.15% 0.20% 0.14% 0.20% 0.19% 0.10% 0.14% 0.21%
Non-performing assets + accruing
loans 90 days past due to loans
and foreclosed assets 0.88% 0.79% 0.69% 0.64% 0.59% 0.46% 0.51% 0.65%
Net charge-offs $3,680 $2,786 $3,017 $2,963 $3,839 $2,260 $1,691 $1,704
Net charge-offs as
a percent of average loans 0.61% 0.45% 0.47% 0.45% 0.56% 0.33% 0.24% 0.23%
Allowance for loan losses $36,750 $37,500 $38,300 $38,725 $40,682 $41,182 $41,382 $76,584
Allowance for loan losses as a
percent of period end loans 1.50% 1.49% 1.47% 1.45% 1.48% 1.48% 1.45% 2.57%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 169.73% 188.51% 211.55% 225.17% 251.85% 323.66% 284.75% 392.70%
Provision for loan losses $4,180 $3,536 $3,817 $3,388 $5,796 $2,760 $1,891 $36,905
Provision for loan losses to net
charge-offs 113.59% 126.92% 126.52% 114.34% 150.98% 122.13% 111.83% 2165.65%
Net Charge-Off Information
Net charge-offs:
Commercial/real estate loans $599 $1,159 $788 $734 $1,003 $770 $202 ($17)
Mortgage loans 74 (1) (26) (22) 38 68 (5) 7
Direct consumer loans 1,583 637 1,182 1,222 1,173 501 491 861
Indirect consumer loans 576 442 572 402 910 540 538 342
Finance company loans 848 549 501 627 715 381 465 511
----------- ------------ ------------ ----------- ----------- ----------- ---------- -----------
Total net charge-offs $3,680 $2,786 $3,017 $2,963 $3,839 $2,260 $1,691 $1,704
Average loans:
Commercial/real estate loans $1,237,715 $1,299,399 $1,352,432 $1,396,149 $1,439,074 $1,491,008 $1,523,348 $1,584,244
Mortgage loans 361,715 367,320 391,270 400,710 408,535 407,258 417,307 430,615
Direct consumer loans 491,340 487,452 483,150 487,139 498,336 503,700 509,628 504,362
Indirect consumer loans 248,817 268,311 279,230 296,755 307,413 313,542 323,100 335,482
Finance Company loans 54,598 55,488 57,829 59,935 60,604 60,720 62,124 64,006
----------- ------------ ------------ ----------- ----------- ----------- ---------- -----------
Total average loans $2,394,185 $2,477,971 $2,563,910 $2,640,689 $2,713,963 $2,776,229 $2,835,506 $2,918,709
Net charge-offs to average loans:
Commercial/real estate loans 0.19% 0.36% 0.23% 0.21% 0.28% 0.21% 0.05% 0.00%
Mortgage loans 0.08% 0.00% -0.03% -0.02% 0.04% 0.07% 0.00% 0.01%
Direct consumer loans 1.28% 0.53% 0.98% 1.00% 0.94% 0.40% 0.39% 0.68%
Indirect consumer loans 0.92% 0.66% 0.82% 0.54% 1.18% 0.70% 0.67% 0.40%
Finance Company loans 6.16% 3.98% 3.48% 4.16% 4.69% 2.54% 3.00% 3.17%
----------- ------------ ------------ ----------- ----------- ----------- ---------- -----------
Total net charge-offs to average
loans 0.61% 0.45% 0.47% 0.45% 0.56% 0.33% 0.24% 0.23%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2003 2004 2005
---------- ------------------------------------------ -------------------------------
4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Income Statement
Interest income $54,697 $53,842 $56,318 $57,424 $59,190 $60,531 $64,027 $65,644
Interest income (TE) 56,464 55,696 58,115 59,184 61,051 62,302 65,767 67,506
Interest expense 13,529 13,470 14,218 14,567 15,014 16,289 17,961 19,659
---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Net interest income (TE) 42,936 42,226 43,897 44,617 46,037 46,013 47,807 47,847
Provision for loan losses 4,180 3,536 3,817 3,388 5,796 2,760 1,891 36,905
Non-interest income excluding
net storm-related items,
gains on sale of branches,
credit card merchant and
securities transactions 19,657 20,231 21,619 20,973 22,037 22,427 24,695 21,600
Net storm-related items (Net
gain on insurance less
direct expenses incurred) - - - - - - - 12,276
Gains on sale of branches and
credit card merchant - 2,258 3,000 - - - - -
Securities transactions
gains/(losses) 553 149 11 (2) 4 7 (15) (18)
Non-interest expense 35,568 39,262 39,437 38,306 37,945 41,642 42,505 42,770
---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Income before income taxes 21,630 20,212 23,476 22,134 22,475 22,273 26,350 168
Income tax expense (benefit) 6,382 6,068 7,104 6,737 6,684 6,836 8,256 (1,267)
---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Net income 15,248 14,144 16,372 15,396 15,791 15,438 18,094 1,435
Preferred dividends 663 - - - - - - -
---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Net income to common $14,585 $14,144 $16,372 $15,396 $15,791 $15,438 $18,094 $1,435
========== ========= ========= =========== ========== ========== ========== =========
Non-interest Income
and Operating Expense
Service charges on deposit
accounts $11,071 $10,230 $10,771 $11,567 $11,062 $9,490 $10,459 $7,975
Trust fees 1,976 1,985 2,277 2,281 2,487 2,541 2,859 2,761
Debit card & merchant fees 870 861 1,042 1,197 1,172 1,030 1,074 1,055
Insurance fees 557 2,484 2,828 2,056 1,824 3,881 3,499 4,883
Investment & annuity fees 874 693 584 438 581 1,188 1,547 1,304
ATM fees 1,016 1,128 1,136 1,129 1,119 1,372 1,154 871
Secondary mortgage market
operations 582 385 531 529 1,489 499 676 377
Other income 2,712 2,465 2,450 1,776 2,302 2,426 3,428 2,374
---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Non-interest income excluding
net storm-related items,
gains on sale of branches
and credit card merchant
and securities transactions 19,657 20,231 21,619 20,973 22,037 22,427 24,695 21,600
Net storm-related items (Net gain
on insurance less
direct expenses incurred) - - - - - - - 12,276
Gains on sale of branches and
credit card merchant - 2,258 3,000 - - - - -
Securities transactions
gains/(losses) 553 149 11 (2) 4 7 (15) (18)
---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Total non-interest income
including net storm-related
sale of branches,
credit card merchant and
securities transactions 20,209 22,638 24,631 20,971 22,041 22,433 24,680 33,858
---------- --------- --------- ----------- ---------- ---------- ---------- ---------
Personnel expense 19,242 22,896 21,137 20,664 21,706 22,379 22,925 24,275
Occupancy expense (net) 2,362 2,413 2,405 2,470 2,627 2,495 2,576 2,617
Equipment expense 2,331 2,326 2,376 2,419 2,548 2,357 2,366 2,319
Other operating expense 11,193 11,302 12,996 12,194 10,526 13,828 14,059 13,044
Amortization of intangibles 440 325 524 558 538 584 578 514
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Total non-interest expense $35,568 $39,262 $39,437 $38,306 $37,945 $41,642 $42,505 $42,770
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