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 January 31, 2006, Hancock Holding Company
issued a press release announcing its earnings for the fourth 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 January 31, 2006, headed "Hancock Holding
Company Announces Earnings for Fourth 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: February 1, 2006
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
- --------------------- --------------------
January 31, 2006 George A. Schloegel, Chief Executive Officer
Carl J. Chaney, Chief Financial Officer
Michael M. Achary, Treasurer
Paul D. Guichet, Investor Relations
800.522.6542 or 228.563.6559
===================================================================================================================GULFPORT, MS (January 31, 2006) - Hancock Holding Company (NASDAQ: HBHC), today announced earnings for the quarter ended December 31, 2005. Hancock’s fourth quarter 2005 earnings were $19.07 million, an increase of $3.27 million, or 21 percent, from the fourth quarter of 2004. Diluted earnings per share for the fourth quarter of 2005 were $0.58, an increase of $0.10, or 21 percent, from the same quarter a year ago. Compared to the third quarter of 2005, fourth quarter earnings were up $17.63 million, with diluted earnings per share up $0.54.
Net income for 2005 totaled $54.03 million, compared to $61.70 million reported for 2004, a decrease of $7.67 million or 12 percent. Diluted earnings per share for 2005 were $1.64, compared to $1.87 for 2004, resulting in a decrease of $0.23 per share, or 12 percent.
Hancock’s earnings for the third and fourth quarters of 2005 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 and fourth 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 property and casualty insurance proceeds, which had either been received or where their receipt was considered substantially assured. The Company believes there is a possibility that additional gains might be recognized with respect to ongoing casualty claims, but this is contingent upon reaching further agreement on these claims.
The pretax negative impact of Hurricane Katrina on fourth quarter’s earnings totaled $5.69 million and consisted primarily of direct storm-related expenses incurred through December 31, 2005. These expenses included items related to the operation of a remote disaster recovery site for the Company’s technology operations, moving and setup costs associated with establishing an interim operations site in Mississippi, clean up and building repairs of damaged facilities, transportation/lodging/meals related to displaced employees and other storm-related costs.
Excluding the impact of the aforementioned storm-related charges and reserves, earnings for the fourth quarter of 2005 would have been $22.77 million, an increase of $3.97 million, or 21%, compared to third quarter’s earnings of $18.80 million, adjusted to exclude the impact of the storm. Similarly, on an adjusted basis, diluted earnings per share for the fourth quarter would have been $0.69 per share, compared to $0.57 per share for the third quarter. Adjusted earnings for 2005 totaled $75.09 million, or diluted earnings per share of $2.28.
The financial impact of the above storm-related charges and accruals on the Company’s earnings for the third and fourth quarter of 2005 is summarized in the table below.
Earnings Summary
(dollars in thousands, except EPS)
3Q05 4Q05 2005
------------ ------------ -----------
Reported Earnings (GAAP) $ 1,435 $19,065 $54,032
------------ ------------ -----------
Less Storm-Related Items:
Estimated Credit Losses 35,201 - 35,201
Net Gain on Insurance less
Direct Expenses (12,276) 5,692 (6,584)
Waived Fees 3,785 - 3,785
------------ ------------ -----------
Total Storm-related Items (pre-tax) 26,710 5,692 32,402
Total Storm-related Items (after-tax) 17,362 3,700 21,061
------------ ------------ -----------
Adjusted Earnings (Non GAAP) $18,797 $22,765 $75,093
============ ============ ===========
Reported (GAAP) Diluted EPS $0.04 $0.58 $1.64
Adjusted (Non GAAP) Diluted EPS $0.57 $0.69 $2.28
In commenting on Hancock’s operating results for 2005, George A. Schloegel, Chief Executive Officer, stated, “The Company is pleased with our earnings performance for the third and fourth quarters in light of the unique circumstances we have operated in due to Hurricane Katrina. Speaking for the Board of Directors and our Management Team, we are all extremely proud of how our associates have risen to the challenges of the past four months. Hancock is rebuilding, as is our home region. We will continue to be a leader in this recovery and will always work hard to maintain the trust and respect of our customers, shareholders, friends and neighbors.”
Leo W. Seal, Jr., President of Hancock Holding Company, added, “In the midst of the aftermath of the nation’s worst and most costly natural disaster, Hancock will continue to be there for our customers and to lead the recovery in our home region.”
Balance Sheet Growth and CapitalThe Company’s balance sheet continues to experience significant growth since Hurricane Katrina impacted our market area. At December 31, 2005, Hancock had total loans of $2.99 billion and total deposits of $4.99 billion. The Company’s total asset size at December 31, 2005 was $5.95 billion. For the period from August 31, 2005 to December 31, 2005, total loans have grown $51 million, or 2 percent, and total deposits have grown $1.19 billion, or 31 percent, while total assets have increased $1.16 billion, or 24 percent.
The Company’s balance sheet growth was not limited to the immediate aftermath of the storm and continued throughout the fourth quarter. Total deposits grew $965 million, or 24 percent, from September 30, 2005 to December 31, 2005. The composition of deposit inflows since August 31, 2005 has been favorable to the Company’s funding mix and consisted of 50 percent non-interest-bearing demand accounts, 38 percent low cost interest-bearing transaction accounts and 12 percent time deposits. In addition, during the fourth quarter of 2005, the Company added 12,663 new transaction accounts (net of account closures). This level of new transaction accounts compares to 7,770 new transaction accounts (net of account closures) during the fourth quarter of 2004, an increase of 4,893 accounts, or 63 percent.
During this same time period, overall loan growth was relatively flat and totaled $5 million. It is not uncommon for loan growth to lag deposit growth in the aftermath of a storm such as Hurricane Katrina. Loan growth in the Company’s operating region is expected to increase significantly once the inflows of insurance and federal aid funds begins to subside at some point later in 2006.
With loan growth relatively flat since the storm, all of the aforementioned deposit growth was invested in a combination of short-term investments (fed funds) and in the Company’s securities portfolio. Mindful of the fact that 88 percent of the deposit inflows during this period were in transaction accounts; great care was taken in investing this money so that future potential liquidity needs could be met. To that end, approximately $628 million of the total deposit inflows since the storm were invested in either fed funds or very short-term U.S. Agency Discount notes and Treasuries. The remaining funds (approximately $562 million) were invested in primarily short duration U.S. Agency bullet maturity bonds.
The Loan/Deposit Ratio averaged 77 percent for the third quarter, but dropped to 66 percent for the fourth quarter of 2005, due to an average increase in deposits of $712 million, compared to $80 million increase in average loans for the same period. At December 31, 2005, the Loan/Deposit Ratio was 60 percent.
Hancock remains very well capitalized even with a $1.16 billion increase in total assets since the storm made landfall on August 29, 2005. As of December 31, 2005, Hancock’s Leverage (tier one) Ratio stands at 7.85 percent, while the Tangible Equity Ratio is 6.89 percent. Both ratios are down from June 30, 2005 where they stood at 8.83 percent and 8.71 percent, respectively. While Hancock remains very well capitalized, so that we maintain flexibility for future capital needs, including acquisitions, the Company may consider raising additional capital at some point in 2006.
Net Interest IncomeNet interest income (te) for the fourth quarter of 2005 increased $8.49 million, or 18 percent, from the fourth quarter of 2004, and was up $6.68 million, or 14 percent, from the third quarter of 2005. The Company’s net interest margin (te) was 4.44 percent in the fourth quarter of 2005, 9 basis points narrower than the same quarter a year ago and 4 basis points wider than the previous quarter.
Compared to the same quarter a year ago, the primary driver of the $8.49 million increase in net interest income (te) was an $834 million, or 21 percent, increase in average earning assets mainly from average deposit growth of $904 million, or 25 percent, much of which was related to deposits inflows in the aftermath of Hurricane Katrina. The unprecedented deposit growth caused the Loan/Deposit Ratio to decline to 66 percent in the fourth quarter of 2005. The $834 million increase in average earning assets was deployed into loans (average increase of $285 million, or 11 percent), short-term investments (average increase of $298 million), and in the Company’s securities portfolio (average increase of $251 million, or 19 percent). Loans now comprise 61 percent of the Company’s average earning asset base, as compared to 67 percent for the same quarter a year ago. The net interest margin (te) narrowed 9 basis points as the increase in the average earning asset yield (14 basis points) did not offset the increase in total funding costs (23 basis points).
The Company’s level of net interest income (te) in the fourth quarter of 2005 increased $6.68 million, or 14 percent, from the prior quarter. The Company experienced loan growth in the fourth quarter with average loans increasing $80 million, mostly in commercial loans. Average earning assets increased $552 million, or 13 percent, over the previous quarter. Fueled by storm-related deposit inflows, average deposits increased $712 million, or 19 percent, compared to the prior quarter. Of the $552 million increase in average earning assets, $80 million was deployed into loans, $264 million into short-term investments (mostly fed funds) and the balance, $208 million, into the securities portfolio. The net interest margin (te) widened 4 basis points from the prior quarter as the yield on average earning assets decreased 5 basis points, while total funding costs were down 10 basis points. The decrease in the yield on average earning assets was due to an overall larger percent of the Company’s earning assets in securities and short-term investments (39 percent) than the previous quarter (33 percent). The total cost of funds was down 10 basis points due to favorable impact on the Company’s funding mix related to the mix of fourth quarter deposit inflows (50 percent non-interesting bearing accounts and 38 percent low cost interest-bearing transaction accounts).
Non-Interest Income, Non-interest Expense and TaxesExcluding the impact of net storm-related items and securities transactions, non-interest income for the fourth quarter of 2005 was up $979,000, or 4 percent, compared to the same quarter a year ago. Non-interest income was up $1.42 million, or 7 percent, compared to the third 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 $3.01 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, other income was up $1.85 million, when compared to the same quarter a year ago. However, service charges were down $4.21 million principally due to waived return item fees and other service charges as a result of accommodations to customers impacted by Hurricane Katrina. The increase in non-interest income for the fourth quarter of 2005 (excluding the 2005 net storm-related items and securities transactions) compared to the prior quarter was due to increases in debit card and merchant services fees (up $662,000) and other income (up $1.78 million). However, service charges on deposit accounts were down $1.13 million from an already depressed level in the third quarter due to customer accommodations related to the storm. The $1.13 million decrease in service charges for the fourth quarter was due only partly to additional customer accommodations, but was primarily due to changes in customer behavior since many had significant cash available from insurance proceeds.
Operating expenses for the fourth quarter of 2005 were $6.68 million higher, or 18 percent, compared to the same quarter a year ago and were $1.87 million higher, or 4 percent, than the previous quarter. The increase from the same quarter a year ago was reflected in higher personnel expense (up $2.87 million) and higher expenses associated with Magna Insurance Company (up $1.95 million). The increase from the prior quarter was reflected in increased other operating expense (up $736,000) and higher occupancy expenses (up $620,000).
Hancock’s effective tax rate for 2005 was 26 percent, compared to 30 percent for 2004. The 4 percent decrease in the Company’s effective tax rate was due to variety of factors including the following:
o Increase in tax exempt income as a percent of book income to 17% in 2005 from 13% in 2004 o Hurricane Katrina tax credits available in 2005 o Reduction of tax accruals for non-taxable income primarily related to bank owned life insurance
The Company expects its effective tax rate to be approximately 29 percent for the year 2006.
Annualized net charge-offs as a percent of average loans for the fourth quarter of 2005 were 0.41 percent, compared to 0.23 percent for the third quarter of 2005, and to 0.56 percent in the fourth quarter of 2004. Of the 0.41 percent or $3.10 million in fourth quarter net charge-offs, $2.35 million, or 0.31 percent, were related to Hurricane Katrina. The storm-related net charge-offs were charged directly against the $35.2 million storm-related allowance for loan losses established by the Company in the third quarter of 2005. The Company does anticipate that the level of storm-related net charge-offs will be significantly higher during the first half of 2006. However, Hancock does not expect that the level of total storm-related net charge-offs to be materially different from the $35.2 million allowance established during the third quarter. Excluding the fourth quarter storm-related net charge-offs of $2.35 million, net charge-offs for the fourth quarter was 0.10 percent of average loans, or $754,000. That represents a decrease of 13 basis points, or $950,000 from the prior quarter and a decrease of 46 basis points, or $3.09 million from the same quarter a year ago.
The provision for loan losses in the fourth quarter of 2005 was $1.08 million. This compares to the $36.91 million provision booked in the third quarter of 2005, of which $35.20 million was related to the establishment of a storm-related provision for credit losses, and to $5.80 million for the fourth quarter of 2004.
Non-performing assets as a percent of total loans and foreclosed assets was 0.42 percent at December 31, 2005, compared to 0.45 percent at September 30, 2005. Compared to the fourth quarter of 2004, the ratio of non-performing assets as a percent of total loans and foreclosed assets was up 2 basis points from the 0.40 percent reported at December 31, 2004. Non-performing assets decreased $1.52 million from September 30, 2005, reflecting primarily lower levels of foreclosed assets. The composition of the Company’s $12.52 million non-performing asset base continues to reflect granularity with many smaller credits and/or properties (only 10 credits or properties exceeding $250,000 and 119 credits or properties below $250,000). The Company’s ratio of accruing loans 90 days or more past due to total loans was 0.86 percent at December 31, 2005, compared to 0.21 percent at September 30, 2005 and to 0.19 percent at December 31, 2004. The increase in the ratio of 90 days or more past due ratio was related to storm-related accommodations granted to certain loan customers. In the aftermath of Hurricane Katrina, Hancock recognized that many of our credit customers (mostly residential mortgage holders) were in a position where time would be needed to recover sufficiently from the storm before they could resume payments on their loans. Accommodations in the form of loan payment extensions (most for 90 days) were granted on a customer-by-customer basis.
The Company’s allowance for loan losses was $74.56 million at December 31, 2005, down $2.03 million from the $76.58 million reported at September 30, 2005, and $33.88 million higher than the $40.68 million reported at December 31, 2004. The ratio of the allowance for loan losses as a percent of period-end loans was 2.49 percent at December 31, 2005, compared to 2.57 percent at September 30, 2005 and 1.48 percent at December 31, 2004. The allowance coverage ratio (allowance for loan losses to non-performers and past dues) was 196 percent in fourth quarter 2005, as compared to 252 percent in fourth quarter 2004, and 393 percent in third quarter 2005. As previously mentioned, the Company had established a specific allowance of $35.20 million for estimated credit losses related to the impact of Hurricane Katrina on Hancock’s loan portfolio in the third quarter of 2005. Hancock recorded storm-related net charge-offs of $2.35 million during the fourth quarter that were charged directly against the aforementioned allowance. In doing so the storm-related allowance was reduced by $2.35 million and as of December 31, 2005 stands at $32.85 million. Hancock is continuously reviewing the adequacy of the special storm-related allowance and views the current level to be adequate and, as such, expects no material deviations once all storm-related net charge-offs are known.
The Company will provide a live overview of earnings for the fourth quarter and all of 2005 earnings, as well as an update on the impact of Hurricane Katrina, beginning at 2:00 p.m., Central Daylight Time, on Monday, February 6, 2006. 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 185478.
Hancock Holding Company - parent company of Hancock Bank (Mississippi), Hancock Bank of Louisiana, Hancock Bank of Florida and Magna Insurance Company - has assets of $5.95 billion at December 31, 2005. Founded in 1899, Hancock Bank stands among the strongest, safest five-star financial institutions in America. Hancock Bank operates 100 Hancock full-service offices and 120 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 atwww.hancockbank.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about companies’ anticipated future financial performance. This act provides a safe harbor for such disclosure, which protects the companies from unwarranted litigation if actual results are different from management expectations. This release contains forward-looking statements and reflects management’s current views and estimates of future economic circumstances, industry conditions, company performance, and financial results. These forward-looking statements are subject to a number of factors and uncertainties which could cause the company’s actual results and experience to differ from the anticipated results and expectations expressed in such forward-looking statements.
- more -
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
----------------------------------------- ----------------------------
Three Months Ended Twelve Months Ended
----------------------------------------- ----------------------------
12/31/2005 9/30/2005 12/31/2004 12/31/2005 12/31/2004
-------------- -------------- ----------- -------------- -------------
Per Common Share Data
Earnings per share:
Basic $0.59 $0.04 $0.49 $1.67 $1.91
Diluted $0.58 $0.04 $0.48 $1.64 $1.87
Cash dividends per share $0.195 $0.195 $0.165 $0.720 $0.580
Book value per share (period-end) $14.78 $14.52 $14.32 $14.78 $14.32
Tangible book value per share (period-end) $12.55 $12.25 $12.16 $12.55 $12.16
Weighted average number of shares:
Basic 32,313 32,308 32,467 32,365 32,390
Diluted 32,980 32,940 33,076 32,966 33,052
Period-end number of shares 32,301 32,309 32,440 32,301 32,440
Market data:
High closing price $39.90 $37.84 $34.83 $39.90 $34.83
Low closing price $31.08 $29.93 $30.00 $28.25 $25.00
Period end closing price $37.81 $34.14 $33.46 $37.81 $33.46
Trading volume 6,829 8,760 2,781 22,404 11,572
Other Period-end Data
FTE Headcount 1,735 1,590 1,767 1,735 1,767
Tangible common equity $405,216 $395,843 $394,389 $405,216 $394,389
Tier I capital $420,281 $407,075 $399,320 $420,281 $399,320
Goodwill $61,418 $61,428 $55,409 $61,418 $55,409
Amortizable intangibles $9,204 $9,928 $12,263 $9,204 $12,263
Mortgage servicing intangibles $1,577 $1,860 $2,520 $1,577 $2,520
Common shares repurchased for publicly announced plans - 11.8 - 147.9 236.1
Performance Ratios
Return on average assets 1.39% 0.12% 1.39% 1.10% 1.39%
Return on average common equity 15.98% 1.18% 13.54% 11.36% 13.79%
Earning asset yield (TE) 6.14% 6.19% 6.00% 6.08% 5.88%
Total cost of funds 1.70% 1.80% 1.47% 1.68% 1.44%
Net interest margin (TE) 4.44% 4.40% 4.53% 4.40% 4.44%
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 56.89% 60.85% 54.95% 58.82% 58.48%
Average common equity as a percent of average total assets 8.72% 10.13% 10.26% 9.65% 10.11%
Leverage Ratio 7.85% 8.64% 8.97% 7.85% 8.97%
Tangible common equity to assets 6.89% 8.17% 8.58% 6.89% 8.58%
Net charge-offs as a percent of average loans 0.41% 0.23% 0.56% 0.30% 0.48%
Allowance for loan losses as a percent of period end loans 2.49% 2.57% 1.48% 2.49% 1.48%
Allowance for loan losses to NPAs + accruing loans 90 days
past due 195.50% 392.70% 251.86% 195.50% 251.86%
Provision for loan losses to net charge-offs 34.76% 2165.65% 150.98% 486.75% 131.19%
Loan/Deposit Ratio 66.44% 76.77% 75.19% 72.05% 72.16%
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) 29.68% 31.10% 32.37% 31.86% 33.77%
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Three Months Ended Twelve Months Ended
---------------------------------------- --------------------------
12/31/2005 9/30/2005 12/31/2004 12/31/2005 12/31/2004
----------------------------------------- --------------------------
Asset Quality Information
Non-accrual loans $10,617 $10,373 $7,480 $10,617 $7,480
Foreclosed assets 1,898 2,973 3,513 1,898 3,513
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Total non-performing assets $12,515 $13,346 $10,993 $12,515 $10,993
Non-performing assets as a percent of loans and
foreclosed assets 0.42% 0.45% 0.40% 0.42% 0.40%
Accruing Loans 90 days past due $25,622 $6,156 $5,160 $25,622 $5,160
Accruing Loans 90 days past due as a percent of loans 0.86% 0.21% 0.19% 0.86% 0.19%
Non-performing assets + accruing loans 90 days past due
to loans and foreclosed assets 1.28% 0.65% 0.59% 1.28% 0.59%
Net charge-offs $3,104 $1,704 $3,839 $8,759 $12,605
Net charge-offs as a percent of average loans 0.41% 0.23% 0.56% 0.30% 0.48%
Allowance for loan losses $74,558 $76,584 $40,682 $74,558 $40,682
Allowance for loan losses as a percent of period end loans 2.49% 2.57% 1.48% 2.49% 1.48%
Allowance for loan losses to NPAs + accruing loans 90 days
past due 195.50% 392.70% 251.86% 195.50% 251.86%
Provision for loan losses $1,079 $36,905 $5,796 $42,635 $16,537
Provision for loan losses to net charge-offs 34.76% 2165.65% 150.98% 486.75% 131.19%
Allowance for Loan Losses
Beginning Balance $76,584 $41,382 $38,725 $40,682 $36,750
Provision for loan loss 1,079 36,905 5,796 42,635 16,537
Charge-offs 4,546 3,699 5,562 15,811 20,428
Recoveries 1,442 1,995 1,723 7,052 7,823
----------------------------------------- --------------------------
Net charge-offs 3,104 1,704 3,839 8,759 12,605
----------------------------------------- --------------------------
Ending Balance $74,558 $76,584 $40,682 $74,558 $40,682
----------------------------------------- --------------------------
Storm-related Allowance for Loan Losses (Included above) $32,851 $35,201 - $32,851 -
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Net Charge-Off Information
Net charge-offs:
Commercial/real estate loans $332 ($17) $1,003 $1,287 $3,685
Mortgage loans (7) 7 38 63 (11)
Direct consumer loans 1,831 861 1,173 3,684 4,213
Indirect consumer loans 272 342 910 1,692 2,327
Finance company loans 676 511 715 2,033 2,391
----------------------------------------- --------------------------
Total net charge-offs (including storm-related) $3,104 $1,704 $3,839 $8,759 $12,605
Storm-related net charge-offs 2,350 - - 2,350 -
----------------------------------------- --------------------------
Total net charge-offs (excluding storm-related) $754 $1,704 $3,839 $6,409 $12,605
========================================= ==========================
Average loans:
Commercial/real estate loans $1,660,804 $1,584,244 $1,439,074 $1,565,369 $1,372,014
Mortgage loans 442,977 430,615 408,535 424,654 392,028
Direct consumer loans 489,150 504,362 498,336 501,677 489,040
Indirect consumer loans 342,203 335,482 307,413 328,679 288,005
Finance Company loans 63,663 64,006 60,604 62,640 58,474
----------------------------------------- --------------------------
Total average loans $2,998,797 $2,918,709 $2,713,963 $2,883,020 $2,599,561
Net charge-offs to average loans:
Commercial/real estate loans 0.08% 0.00% 0.28% 0.08% 0.27%
Mortgage loans -0.01% 0.01% 0.04% 0.01% 0.00%
Direct consumer loans 1.49% 0.68% 0.94% 0.73% 0.86%
Indirect consumer loans 0.32% 0.40% 1.18% 0.51% 0.81%
Finance Company loans 4.21% 3.17% 4.69% 3.25% 4.09%
----------------------------------------- --------------------------
Total net charge-offs to average loans
(including storm-related) 0.41% 0.23% 0.56% 0.30% 0.48%
----------------------------------------- --------------------------
Total net charge-offs to average loans
(excluding storm-related) 0.10% 0.23% 0.56% 0.22% 0.48%
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Three Months Ended Twelve Months Ended
---------------------------------------- --------------------------
12/31/2005 9/30/2005 12/31/2004 12/31/2005 12/31/2004
---------------------------------------- --------------------------
Income Statement
Interest income $73,429 $65,644 $59,190 $263,631 $226,774
Interest income (TE) 75,433 67,506 61,051 271,008 234,047
Interest expense 20,911 19,659 15,014 74,819 57,270
---------------------------------------- --------------------------
Net interest income (TE) 54,522 47,847 46,037 196,189 176,777
Provision for loan losses 1,079 36,905 5,796 42,635 16,537
Non-interest income excluding net storm-related items,
gains on sale of branches and credit card
merchant and securities transactions 23,016 21,600 22,037 91,738 84,860
Net storm-related items (Net gain on insurance less
direct expenses incurred) (5,692) 12,276 - 6,584 -
Gains on sale of branches and credit card merchant - - - - 5,258
Securities transactions gains/(losses) (27) (18) 4 (53) 163
Non-interest expense 44,626 42,770 37,945 171,543 154,951
---------------------------------------- --------------------------
Income before income taxes 24,112 168 22,475 72,903 88,297
Income tax expense (benefit) 5,047 (1,267) 6,684 18,871 26,593
---------------------------------------- --------------------------
Net income $19,065 $1,435 $15,791 $54,032 $61,704
======================================== ==========================
Non-interest Income and Operating Expense
Service charges on deposit accounts $6,850 $7,975 $11,062 $34,773 $43,631
Trust fees 2,946 2,761 2,487 11,107 9,030
Debit card & merchant fees 1,717 1,055 1,172 4,878 4,271
Insurance fees 4,837 4,883 1,824 17,099 9,193
Investment & annuity fees 1,037 1,304 581 5,076 2,295
ATM fees 805 871 1,119 4,202 4,512
Secondary mortgage market operations 670 377 1,489 2,221 2,934
Other income 4,154 2,374 2,302 12,381 8,993
---------------------------------------- --------------------------
Non-interest income excluding net storm-related items,
gains on sale of branches and credit card
merchant and securities transactions $23,016 $21,600 $22,037 $91,738 $84,860
Net storm-related items (Net gain on insurance less
direct expenses incurred) (5,692) 12,276 - 6,584 -
Gains on sale of branches and credit card merchant - - - - 5,258
Securities transactions gains/(losses) (27) (18) 4 (53) 163
---------------------------------------- --------------------------
Total non-interest income including net storm-related
items, gains on sale of branches and credit card
merchant, and securities transactions $17,298 $33,858 $22,041 $98,270 $90,281
======================================== ==========================
Personnel expense $24,580 $24,275 $21,706 $94,158 $86,404
Occupancy expense (net) 3,237 2,617 2,627 10,926 9,915
Equipment expense 2,511 2,319 2,548 9,553 9,669
Other operating expense 13,780 13,044 10,526 54,712 47,018
Amortization of intangibles 518 514 538 2,194 1,945
---------------------------------------- --------------------------
Total non-interest expense $44,626 $42,770 $37,945 $171,543 $154,951
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Three Months Ended Twelve Months Ended
---------------------------------------- --------------------------
12/31/2005 9/30/2005 12/31/2004 12/31/2005 12/31/2004
---------------------------------------- --------------------------
Period-end Balance Sheet
Commercial/real estate loans $1,677,716 $1,637,011 $1,464,595 $1,677,716 $1,464,595
Mortgage loans 423,563 441,512 408,726 423,563 408,726
Direct consumer loans 477,716 501,704 503,443 477,716 503,443
Indirect consumer loans 346,071 339,822 310,378 346,071 310,378
Finance Company loans 64,121 64,121 61,419 64,121 61,419
---------------------------------------- --------------------------
Total loans 2,989,186 2,984,170 2,748,560 2,989,186 2,748,560
Securities 1,959,261 1,323,166 1,302,369 1,959,261 1,302,369
Short-term investments 410,226 141,270 150,261 410,226 150,261
---------------------------------------- --------------------------
Earning assets 5,358,673 4,448,606 4,201,191 5,358,673 4,201,191
---------------------------------------- --------------------------
Allowance for loan losses (74,558) (76,584) (40,682) (74,558) (40,682)
Other assets 666,073 541,467 504,218 666,073 504,218
---------------------------------------- --------------------------
Total assets $5,950,187 $4,913,490 $4,664,726 $5,950,187 $4,664,726
======================================== ==========================
Non-interest bearing deposits $1,324,938 $909,585 $697,353 $1,324,938 $697,353
Interest bearing transaction deposits 1,680,959 1,369,886 1,336,620 1,680,959 1,336,620
Interest bearing Public Fund deposits 633,488 574,603 702,107 633,488 702,107
Time deposits 1,350,436 1,171,080 1,061,865 1,350,436 1,061,865
---------------------------------------- --------------------------
Total interest bearing deposits 3,664,882 3,115,568 3,100,591 3,664,882 3,100,591
---------------------------------------- --------------------------
Total deposits 4,989,820 4,025,153 3,797,945 4,989,820 3,797,945
Other borrowed funds 307,429 249,228 251,111 307,429 251,111
Other liabilities 175,523 170,049 151,089 175,523 151,089
Preferred stock - - - - -
Common shareholders' equity 477,415 469,059 464,582 477,415 464,582
---------------------------------------- --------------------------
Total liabilities, preferred stock & common equity $5,950,187 $4,913,490 $4,664,726 $5,950,187 $4,664,726
======================================== ==========================
Average Balance Sheet
Commercial/real estate loans $1,660,804 $1,584,244 $1,439,074 $1,565,369 $1,372,014
Mortgage loans 442,977 430,615 408,535 424,654 392,028
Direct consumer loans 489,150 504,362 498,336 501,677 489,040
Indirect consumer loans 342,203 335,482 307,413 328,679 288,005
Finance Company loans 63,663 64,006 60,604 62,640 58,474
---------------------------------------- --------------------------
Total loans 2,998,797 2,918,709 2,713,963 2,883,020 2,599,561
Securities 1,571,723 1,364,219 1,320,529 1,434,415 1,345,350
Short-term investments 317,409 52,933 19,517 137,821 34,911
---------------------------------------- --------------------------
Earning average assets 4,887,929 4,335,861 4,054,009 4,455,256 3,979,822
---------------------------------------- --------------------------
Allowance for loan losses (76,488) (41,765) (39,199) (50,107) (38,117)
Other assets 612,144 487,867 506,032 525,881 482,628
---------------------------------------- --------------------------
Total assets $5,423,586 $4,781,962 $4,520,841 $4,931,030 $4,424,334
======================================== ==========================
Non-interest bearing deposits $1,126,356 $729,216 $671,758 $822,733 $650,106
Interest bearing transaction deposits 1,573,039 1,311,779 1,359,952 1,384,606 1,360,197
Interest bearing Public Fund deposits 568,803 617,017 543,584 644,849 574,266
Time deposits 1,245,271 1,143,691 1,033,974 1,149,239 1,018,165
---------------------------------------- --------------------------
Total interest bearing deposits 3,387,112 3,072,488 2,937,510 3,178,694 2,952,629
---------------------------------------- --------------------------
Total deposits 4,513,468 3,801,704 3,609,268 4,001,426 3,602,734
Other borrowed funds 263,358 335,758 299,782 293,899 265,431
Other liabilities 173,555 160,232 147,762 160,003 106,545
Preferred stock - - - - 2,240
Common shareholders' equity 473,204 484,269 464,030 475,701 447,384
---------------------------------------- --------------------------
Total liabilities, preferred stock & common equity $5,423,586 $4,781,962 $4,520,841 $4,931,030 $4,424,334
======================================== ==========================
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Three Months Ended Twelve Months Ended
---------------------------------------- --------------------------
12/31/2005 9/30/2005 12/31/2004 12/31/2005 12/31/2004
---------------------------------------- --------------------------
Average Balance Sheet Mix
Percentage of earning assets/funding sources:
Loans 61.35% 67.32% 66.95% 64.71% 65.32%
Securities 32.16% 31.46% 32.57% 32.20% 33.80%
Short-term investments 6.49% 1.22% 0.48% 3.09% 0.88%
---------------------------------------- --------------------------
Earning average assets 100.00% 100.00% 100.00% 100.00% 100.00%
======================================== ==========================
Non-interest bearing deposits 23.04% 16.82% 16.57% 18.47% 16.34%
Interest bearing transaction deposits 32.18% 30.25% 33.55% 31.08% 34.18%
Interest bearing Public Fund deposits 11.64% 14.23% 13.41% 14.47% 14.43%
Time deposits 25.48% 26.38% 25.50% 25.80% 25.58%
---------------------------------------- --------------------------
Total deposits 92.34% 87.68% 89.03% 89.81% 90.53%
Other borrowed funds 5.39% 7.74% 7.39% 6.60% 6.67%
Other net interest-free funding sources 2.27% 4.58% 3.58% 3.59% 2.81%
---------------------------------------- --------------------------
Total average funding sources 100.00% 100.00% 100.00% 100.00% 100.00%
======================================== ==========================
Loan mix:
Commercial/real estate loans 55.38% 54.28% 53.02% 54.30% 52.78%
Mortgage loans 14.77% 14.75% 15.05% 14.73% 15.08%
Direct consumer loans 16.31% 17.28% 18.36% 17.40% 18.81%
Indirect consumer loans 11.41% 11.49% 11.33% 11.40% 11.08%
Finance Company loans 2.12% 2.19% 2.23% 2.17% 2.25%
---------------------------------------- --------------------------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
======================================== ==========================
Average dollars (in thousands):
Loans $2,998,797 $2,918,709 $2,713,963 $2,883,020 $2,599,561
Securities 1,571,723 1,364,219 1,320,529 1,434,415 1,345,350
Short-term investments 317,409 52,933 19,517 137,821 34,911
---------------------------------------- --------------------------
Earning average assets $4,887,929 $4,335,861 $4,054,009 $4,455,256 $3,979,822
Non-interest bearing deposits $1,126,356 $729,216 $671,758 $822,733 $650,106
Interest bearing transaction deposits 1,573,039 1,311,779 1,359,952 1,384,606 1,360,197
Interest bearing Public Fund deposits 568,803 617,017 543,584 644,849 574,266
Time deposits 1,245,271 1,143,691 1,033,974 1,149,239 1,018,165
---------------------------------------- --------------------------
Total deposits 4,513,468 3,801,704 3,609,268 4,001,426 3,602,734
Other borrowed funds 263,358 335,758 299,782 293,899 265,431
Other net interest-free funding sources 111,103 198,399 144,960 159,930 111,657
---------------------------------------- --------------------------
Total average funding sources $4,887,929 $4,335,861 $4,054,009 $4,455,256 $3,979,822
Loans:
Commercial/real estate loans $1,660,804 $1,584,244 $1,439,074 $1,565,369 $1,372,014
Mortgage loans 442,977 430,615 408,535 424,654 392,028
Direct consumer loans 489,150 504,362 498,336 501,677 489,040
Indirect consumer loans 342,203 335,482 307,413 328,679 288,005
Finance Company loans 63,663 64,006 60,604 62,640 58,474
---------------------------------------- --------------------------
Total average loans $2,998,797 $2,918,709 $2,713,963 $2,883,020 $2,599,561
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Three Months Ended
---------------------------------------------------------------------------------------------
12/31/05 09/30/05 12/31/04
------------------------------ ----------------------------- -------------------------------
Interest Volume Rate Interest Volume Rate Interest Volume Rate
----------- ---------- ------ --------- ---------- ----- --------- ---------- -------
Average Earning Assets
Commercial & real estate loans (TE) $28,365 $1,660,804 6.78% $25,770 $1,584,244 6.46% $21,365 $1,439,074 5.91%
Mortgage loans 6,119 442,977 5.53% 5,921 430,615 5.50% 5,743 408,535 5.62%
Consumer loans 17,797 895,016 7.89% 17,772 903,850 7.80% 16,372 866,354 7.52%
Loan fees & late charges 2,104 - 0.00% 2,183 - 0.00% 2,452 - 0.00%
----------- ---------- ------ --------- ---------- ----- --------- ---------- -------
Total loans (TE) 54,386 2,998,797 7.20% 51,646 2,918,709 7.03% 45,932 2,713,963 6.74%
US treasury securities 350 33,735 4.11% 62 11,296 2.17% (111) 11,439 -3.87%
US agency securities 7,403 678,190 4.37% 4,834 464,450 4.16% 4,504 426,505 4.22%
CMOs 1,946 206,910 3.76% 2,251 229,934 3.92% 2,658 269,295 3.95%
Mortgage backed securities 4,917 430,409 4.57% 4,773 436,733 4.37% 4,124 387,881 4.25%
Municipals (TE) 2,747 159,401 6.89% 2,792 160,502 6.96% 2,955 165,400 7.15%
Other securities 633 63,078 4.01% 733 61,304 4.78% 884 60,008 5.89%
----------- ---------- ------ --------- ---------- ----- --------- ---------- -------
Total securities (TE) 17,995 1,571,723 4.58% 15,444 1,364,219 4.53% 15,013 1,320,529 4.55%
Fed funds sold 3,043 309,603 3.90% 409 44,535 3.65% 64 12,003 2.13%
Cds with banks 9 7,806 0.48% 6 8,398 0.30% 42 7,514 2.22%
Other short-term investments - - 0.00% - - 0.00% - - 0.00%
----------- ---------- ------ --------- ---------- ----- --------- ---------- -------
Total short-term investments 3,052 317,409 3.81% 416 52,933 3.11% 106 19,517 2.16%
Average earning assets yield (TE) $75,433 $4,887,929 6.14% $67,506 $4,335,861 6.19% $61,051 $4,054,009 6.00%
Interest-Bearing Liabilities
Interest-bearing transaction deposits $2,836 $1,573,039 0.72% $2,317 $1,311,779 0.70% $2,040 $1,359,952 0.60%
Time deposits 11,503 1,245,271 3.66% 10,222 1,143,691 3.55% 9,009 1,033,974 3.47%
Public Funds 4,825 568,803 3.37% 4,740 617,017 3.05% 2,515 543,584 1.84%
----------- ---------- ------ --------- ---------- ----- --------- ---------- -------
Total interest bearing deposits 19,164 3,387,112 2.24% 17,279 3,072,488 2.23% 13,564 2,937,510 1.84%
Customer repos 1,125 204,386 2.18% 1,467 248,505 2.34% 723 223,837 1.28%
Other borrowings 622 58,972 4.18% 913 87,253 4.15% 727 75,945 3.81%
----------- ---------- ------ --------- ---------- ----- --------- ---------- -------
Total borrowings 1,747 263,358 2.63% 2,380 335,758 2.81% 1,450 299,782 1.92%
Total interest bearing liab cost $20,911 $3,650,470 2.27% $19,659 $3,408,246 2.29% $15,014 $3,237,291 1.85%
Noninterest-bearing deposits 1,126,356 729,216 671,758
Other net interest-free funding sources 111,103 198,399 144,960
Total Cost of Funds $20,911 $4,887,929 1.70% $19,659 $4,335,861 1.80% $15,014 $4,054,009 1.47%
Net Interest Spread (TE) $54,522 3.87% $47,847 3.91% $46,037 4.16%
Net Interest Margin (TE) $54,522 $4,887,929 4.44% $47,847 $4,335,861 4.40% $46,037 $4,054,009 4.53%
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Twelve Months Ended
-------------------------------------------------------------------------------------
12/31/2005 12/31/2004
------------------------------------- ---------------------------------------------
Interest Volume Rate Interest Volume Rate
----------- ----------- --------- ------------- ----------- ------------
Average Earning Assets
Commercial & real estate loans (TE) $100,212 $1,565,369 6.40% $77,550 $1,372,014 5.65%
Mortgage loans 23,623 424,654 5.56% 22,282 392,028 5.68%
Consumer loans 68,997 892,997 7.73% 63,830 835,518 7.64%
Loan fees & late charges 8,615 - 0.00% 9,207 - 0.00%
----------- ----------- --------- ------------- ----------- ------------
Total loans (TE) 201,447 2,883,020 6.99% 172,868 2,599,561 6.65%
US treasury securities 532 16,838 3.16% 200 11,003 1.82%
US agency securities 21,500 514,834 4.18% 17,754 424,875 4.18%
CMOs 9,492 241,473 3.93% 11,515 296,625 3.88%
Mortgage backed securities 19,407 437,037 4.44% 16,706 389,871 4.29%
Municipals (TE) 11,251 161,464 6.97% 12,371 173,317 7.14%
Other securities 2,822 62,769 4.50% 2,248 49,659 4.53%
----------- ----------- --------- ------------- ----------- ------------
Total securities (TE) 65,003 1,434,415 4.53% 60,795 1,345,350 4.52%
Fed funds sold 4,447 128,219 3.47% 297 26,304 1.13%
Cds with banks 80 8,192 0.98% 74 7,241 1.02%
Other short-term investments 32 1,410 2.26% 13 1,366 0.97%
----------- ----------- --------- ------------- ----------- ------------
Total short-term investments 4,559 137,821 3.31% 384 34,911 1.10%
Average earning assets yield (TE) $271,008 $4,455,256 6.08% $234,047 $3,979,822 5.88%
Interest-Bearing Liabilities
Interest-bearing transaction deposits $9,203 $1,384,606 0.66% $8,191 $1,360,197 0.60%
Time deposits 40,654 1,149,239 3.54% 35,056 1,018,165 3.44%
Public Funds 17,725 644,849 2.75% 9,323 574,266 1.62%
----------- ----------- --------- ------------- ----------- ------------
Total interest bearing deposits 67,581 3,178,694 2.13% 52,570 2,952,629 1.78%
Customer repos 4,351 224,842 1.94% 1,909 195,470 0.98%
Other borrowings 2,887 69,057 4.18% 2,790 69,961 3.99%
----------- ----------- --------- ------------- ----------- ------------
Total borrowings 7,238 293,899 2.46% 4,699 265,431 1.77%
Total interest bearing liab cost $74,819 $3,472,593 2.15% $57,270 $3,218,060 1.78%
Noninterest-bearing deposits 822,733 650,106
Other net interest-free funding sources 159,930 111,657
Total Cost of Funds $74,819 $4,455,256 1.68% $57,270 $3,979,822 1.44%
Net Interest Spread (TE) $196,189 3.93% $176,777 4.10%
Net Interest Margin (TE) $196,189 $4,455,256 4.40% $176,777 $3,979,822 4.44%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2004 2005
------------------------------------- --------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
------------------------------------- --------------------------------------
Per Common Share Data
Earnings per share:
Basic $0.44 $0.50 $0.47 $0.49 $0.48 $0.56 $0.04 $0.59
Diluted $0.43 $0.50 $0.47 $0.48 $0.47 $0.55 $0.04 $0.58
Cash dividends per share $0.125 $0.125 $0.165 $0.165 $0.165 $0.165 $0.195 $0.195
Book value per share (period-end) $13.75 $13.32 $14.16 $14.32 $14.16 $14.87 $14.52 $14.78
Tangible book value per share (period-end) $11.58 $11.17 $12.03 $12.16 $11.99 $12.73 $12.25 $12.55
Weighted average number of shares:
Basic 32,048 32,549 32,495 32,467 32,463 32,396 32,308 32,313
Diluted 33,018 33,042 33,054 33,076 33,019 32,928 32,940 32,980
Period-end number of shares 32,558 32,538 32,472 32,440 32,463 32,310 32,309 32,301
Market data:
High closing price $32.00 $32.25 $34.27 $34.83 $34.20 $34.87 $37.84 $39.90
Low closing price $27.08 $25.00 $27.32 $30.00 $30.25 $28.25 $29.93 $31.08
Period end closing price $30.96 $29.06 $31.79 $33.46 $32.50 $34.40 $34.14 $37.81
Trading volume 2,745 3,252 2,792 2,781 3,286 3,527 8,760 6,829
Other Period-end Data
FTE Headcount 1,719 1,754 1,731 1,767 1,766 1,813 1,590 1,735
Tangible common equity $377,056 $363,451 $390,696 $394,389 $389,344 $411,203 $395,843 $405,216
Tier I capital $372,527 $381,428 $391,098 $399,320 $408,163 $416,312 $407,075 $420,281
Goodwill $59,281 $56,474 $56,474 $55,409 $55,409 $55,409 $61,428 $61,418
Amortizable intangibles $8,732 $11,410 $10,852 $12,263 $12,510 $11,746 $9,928 $9,204
Mortgage servicing intangibles $2,464 $2,171 $1,922 $2,520 $2,288 $2,082 $1,860 $1,577
Common shares repurchased for publicly
announced plans 51.8 100.0 84.3 - 40.0 96.1 11.8 -
Performance Ratios
Return on average assets 1.33% 1.49% 1.37% 1.39% 1.32% 1.52% 0.12% 1.39%
Return on average common equity 13.01% 14.97% 13.67% 13.54% 13.32% 15.27% 1.18% 15.98%
Earning asset yield (TE) 5.82% 5.83% 5.86% 6.00% 5.90% 6.08% 6.19% 6.14%
Total cost of funds 1.41% 1.43% 1.44% 1.47% 1.55% 1.66% 1.80% 1.70%
Net interest margin (TE) 4.41% 4.40% 4.42% 4.53% 4.35% 4.42% 4.40% 4.44%
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 60.17% 56.79% 57.55% 54.95% 59.99% 57.83% 60.85% 56.89%
Average common equity as
a percent of average total assets 10.24% 9.95% 10.00% 10.26% 9.94% 9.94% 10.13% 8.72%
Leverage Ratio 8.73% 8.76% 8.86% 8.97% 8.75% 8.83% 8.64% 7.85%
Tangible common equity to assets 8.77% 8.27% 8.83% 8.58% 8.28% 8.71% 8.17% 6.89%
Net charge-offs as a
percent of average loans 0.45% 0.47% 0.45% 0.56% 0.33% 0.24% 0.23% 0.41%
Allowance for loan losses as
a percent of period end loans 1.49% 1.47% 1.45% 1.48% 1.48% 1.45% 2.57% 2.49%
Allowance for loan losses to
NPAs + loans 90 days past due 188.51% 211.55% 225.17% 251.85% 323.66% 284.75% 392.70% 195.50%
Provision for loan losses to net charge-offs 126.92% 126.52% 114.34% 150.98% 122.13% 111.83% 2165.65% 34.76%
Loan/Deposit Ratio 70.16% 70.13% 73.07% 75.19% 72.40% 73.63% 76.77% 66.44%
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) 34.75% 35.93% 31.98% 32.37% 32.77% 34.06% 31.10% 29.68%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2004 2005
-------------------------------------------- --------------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
-------------------------------------------- --------------------------------------------
Asset Quality Information
Non-accrual loans $9,670 $10,134 $7,770 $7,480 $6,335 $8,052 $10,373 $10,617
Foreclosed assets 5,212 4,270 4,151 3,513 3,591 2,567 2,973 1,898
-------------------------------------------- --------------------------------------------
Total non-performing assets $14,882 $14,404 $11,921 $10,993 $9,926 $10,619 $13,346 $12,515
Non-performing assets as a percent
of loans and foreclosed assets 0.59% 0.55% 0.44% 0.40% 0.36% 0.37% 0.45% 0.42%
Accruing Loans 90 days past due $5,011 $3,701 $5,277 $5,160 $2,798 $3,914 $6,156 $25,622
Accruing Loans 90 days past due as
a percent of loans 0.20% 0.14% 0.20% 0.19% 0.10% 0.14% 0.21% 0.86%
Non-performing assets + accruing loans
90 days past due to loans and
foreclosed assets 0.79% 0.69% 0.64% 0.59% 0.46% 0.51% 0.65% 1.28%
Net charge-offs $2,786 $3,017 $2,963 $3,839 $2,260 $1,691 $1,704 $3,104
Net charge-offs as
a percent of average loans 0.45% 0.47% 0.45% 0.56% 0.33% 0.24% 0.23% 0.41%
Allowance for loan losses $37,500 $38,300 $38,725 $40,682 $41,182 $41,382 $76,584 $74,558
Allowance for loan losses as a
percent of period end loans 1.49% 1.47% 1.45% 1.48% 1.48% 1.45% 2.57% 2.49%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 188.51% 211.55% 225.17% 251.85% 323.66% 284.75% 392.70% 195.50%
Provision for loan losses $3,536 $3,817 $3,388 $5,796 $2,760 $1,891 $36,905 $1,079
Provision for loan losses to net
charge-offs 126.92% 126.52% 114.34% 150.98% 122.13% 111.83% 2165.65% 34.76%
Net Charge-Off Information
Net charge-offs:
Commercial/real estate loans $1,159 $788 $734 $1,003 $770 $202 ($17) $332
Mortgage loans (1) (26) (22) 38 68 (5) 7 (7)
Direct consumer loans 637 1,182 1,222 1,173 501 491 861 1,831
Indirect consumer loans 442 572 402 910 540 538 342 272
Finance company loans 549 501 627 715 381 465 511 676
-------------------------------------------- --------------------------------------------
Total net charge-offs
(including storm-related) $2,786 $3,017 $2,963 $3,839 $2,260 $1,691 $1,704 $3,104
Storm-related net charge-offs - - - - - - - 2,350
-------------------------------------------- --------------------------------------------
Total net charge-offs
(excluding storm-related) $2,786 $3,017 $2,963 $3,839 $2,260 $1,691 $1,704 $754
-------------------------------------------- --------------------------------------------
Average loans:
Commercial/real estate loans $1,299,399 $1,352,432 $1,396,149 $1,439,074 $1,491,008 $1,523,348 $1,584,244 $1,660,804
Mortgage loans 367,320 391,270 400,710 408,535 407,258 417,307 430,615 442,977
Direct consumer loans 487,452 483,150 487,139 498,336 503,700 509,628 504,362 489,150
Indirect consumer loans 268,311 279,230 296,755 307,413 313,542 323,100 335,482 342,203
Finance Company loans 55,488 57,829 59,935 60,604 60,720 62,124 64,006 63,663
-------------------------------------------- --------------------------------------------
Total average loans $2,477,971 $2,563,910 $2,640,689 $2,713,963 $2,776,229 $2,835,506 $2,918,709 $2,998,797
Net charge-offs to average loans:
Commercial/real estate loans 0.36% 0.23% 0.21% 0.28% 0.21% 0.05% 0.00% 0.08%
Mortgage loans 0.00% -0.03% -0.02% 0.04% 0.07% 0.00% 0.01% -0.01%
Direct consumer loans 0.53% 0.98% 1.00% 0.94% 0.40% 0.39% 0.68% 1.49%
Indirect consumer loans 0.66% 0.82% 0.54% 1.18% 0.70% 0.67% 0.40% 0.32%
Finance Company loans 3.98% 3.48% 4.16% 4.69% 2.54% 3.00% 3.17% 4.21%
----------- --------------------- ---------------------- ---------------------------------
Total net charge-offs to average loans
(excl storm-related) 0.45% 0.47% 0.45% 0.56% 0.33% 0.24% 0.23% 0.41%
----------- --------------------- ---------------------- ---------------------------------
Total net charge-offs to average loans
(incl storm-related) 0.45% 0.47% 0.45% 0.56% 0.33% 0.24% 0.23% 0.10%
----------- --------------------- ---------------------- ---------------------------------
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2004 2005
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1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
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Income Statement
Interest income $53,842 $56,318 $57,424 $59,190 $60,531 $64,027 $65,644 $73,429
Interest income (TE) 55,696 58,115 59,184 61,051 62,302 65,767 67,506 75,433
Interest expense 13,470 14,218 14,567 15,014 16,289 17,961 19,659 20,911
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Net interest income (TE) 42,226 43,897 44,617 46,037 46,013 47,807 47,847 54,522
Provision for loan losses 3,536 3,817 3,388 5,796 2,760 1,891 36,905 1,079
Non-interest income excluding net
storm-related items gains on
sale of branches, credit card
merchant and securities transactions 20,231 21,619 20,973 22,037 22,427 24,695 21,600 23,016
Net storm-related items - - - - - - 12,276 (5,692)
Gains on sale of branches and credit
card merchant 2,258 3,000 - - - - - -
Securities transactions gains/(losses) 149 11 (2) 4 7 (15) (18) (27)
Non-interest expense 39,262 39,437 38,306 37,945 41,642 42,505 42,770 44,626
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Income before income taxes 20,212 23,476 22,134 22,475 22,273 26,350 168 24,112
Income tax expense (benefit) 6,068 7,104 6,737 6,684 6,836 8,256 (1,267) 5,047
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Net income $14,144 $16,372 $15,396 $15,791 $15,438 $18,094 $1,435 $19,065
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Non-interest Income
and Operating Expense
Service charges on deposit accounts $10,230 $10,771 $11,567 $11,062 $9,490 $10,459 $7,975 $6,850
Trust fees 1,985 2,277 2,281 2,487 2,541 2,859 2,761 2,946
Debit card & merchant fees 861 1,042 1,197 1,172 1,030 1,074 1,055 1,717
Insurance fees 2,484 2,828 2,056 1,824 3,881 3,499 4,883 4,837
Investment & annuity fees 693 584 438 581 1,188 1,547 1,304 1,037
ATM fees 1,128 1,136 1,129 1,119 1,372 1,154 871 805
Secondary mortgage market operations 385 531 529 1,489 499 676 377 670
Other income 2,465 2,450 1,776 2,302 2,426 3,428 2,374 4,154
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Non-interest income excluding net
storm-related items,
gains on sale of branches and credit
card merchant and securities transactions $20,231 $21,619 $20,973 $22,037 $22,427 $24,695 $21,600 $23,016
Net storm-related items - - - - - - 12,276 (5,692)
Gains on sale of branches and credit
card merchant 2,258 3,000 - - - - - -
Securities transactions gains/(losses) 149 11 (2) 4 7 (15) (18) (27)
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Total non-interest income including
storm-related items, gains on sale of
branches, credit card
merchant and securities transactions $22,638 $24,631 $20,971 $22,041 $22,433 $24,680 $33,858 $17,298
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Personnel expense 22,896 21,137 20,664 21,706 22,379 22,925 24,275 24,580
Occupancy expense (net) 2,413 2,405 2,470 2,627 2,495 2,576 2,617 3,237
Equipment expense 2,326 2,376 2,419 2,548 2,357 2,366 2,319 2,511
Other operating expense 11,302 12,996 12,194 10,526 13,828 14,059 13,044 13,780
Amortization of intangibles 325 524 558 538 584 578 514 518
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Total non-interest expense $39,262 $39,437 $38,306 $37,945 $41,642 $42,505 $42,770 $44,626