SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 18, 2006
HANCOCK HOLDING COMPANY
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(Exact name of registrant as specified in its charter)
Mississippi 0-13089 64-0169065
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(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)
INFORMATION TO BE INCLUDED IN THE REPORT
Item 8.01. Other Events. On July 18, 2006, Hancock Holding Company
issued a press release announcing earnings for second quarter of 2006.
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 July 18, 2006, headed "Hancock Holding
Company announces earnings for second quarter
2006" and related financial statements.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: July 19, 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
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July 18, 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
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GULFPORT, MS (July 18, 2006) - Hancock Holding Company (NASDAQ: HBHC) and Leo W. Seal, Jr., President of Hancock Holding Company, today announced earnings for the quarter ended June 30, 2006. Hancock’s second quarter 2006 earnings were $22.00 million, an increase of $3.90 million, or 22 percent, from the second quarter of 2005. Diluted earnings per share for the second quarter of 2006 were $0.66, an increase of $0.11, or 20 percent, from the same quarter a year ago. Compared to the first quarter of 2006, second quarter earnings were down $13,000, or .1 percent, with diluted earnings per share down $0.01.
For the first six months of 2006, Hancock earned $44.01 million, an increase of $10.48 million, or 31 percent compared to the first six months of 2005. Diluted earnings per share for the first six months of 2006 were $1.32, an increase of $0.30, or 30 percent, from the first six months of 2005.
Hancock’s second quarter 2006 performance was highlighted by the following significant items:
o Returns: return on average assets of 1.45 percent and return on average common equity of 17.89 percent;
in 2006, both ROA and ROE have performed at consistently high levels as the Company continues to improve
returns and profitability in the region's post-storm environment.
o Balance Sheet Growth: total assets were up $1.37 billion, or 29 percent, between June 30, 2005, and
June 30, 2006; the increase in assets from last year was funded by deposit growth of $1.39 billion, or
36 percent; second quarter 2006 average deposits were up $181 million, or 4 percent, compared to the
first quarter of 2006, while average loans were up $24 million, or 1 percent from the same period;
period-end loans were up $73 million since March 31, 2006, while period-end deposits were down $72
million from the same period.
o Net Interest Income (te): on the continued strength of deposit growth and the resulting earning asset
expansion, net interest income (te) was up $1.45 million, or 2 percent between first quarter 2006 and
second quarter 2006; net interest income (te) was up $11.93 million, or 25 percent since the second
quarter of 2005; for the first half of 2006, net interest income (te) was up $24.21 million, or 26
percent.
o Asset Quality: total net charge-offs for the quarter were $3.00 million, which included storm-related
net charge-offs of $1.13 million; excluding the storm-related charge-offs, net charge-offs would have
been $1.87 million, or 0.25 percent of average loans, for the second quarter; non-performing assets as a
percent of loans and foreclosed assets fell 6 basis points to 0.29 percent at June 30, 2006, from March
31, 2006; loans 90 days past due at June 30, 2006, were $6.68 million or 0.22 percent of loans and
foreclosed assets, which was virtually flat with the level reported at March 31, 2006.
o Allowance for Loan Losses: Hancock's allowance for loan losses at June 30, 2006, was $70.96 million, or
2.33 percent of period-end loans, a decrease of $3.00 million from the March 31, 2006 level; Hancock did
not record a provision for loan losses in the second quarter of 2006 as management determined that the
allowance level at June 30, 2006 was adequate and no addition to the allowance was necessary this
quarter; this was done after considering current levels of charge-offs, delinquency levels, and loan
growth levels, as well as the pace of recovery for the region.
o Non-interest Income Growth: non-interest income was up $1.05 million, or 4 percent, from the prior
quarter with increases led by service charges (up $1.34 million), but also reflected significant
increases in trust and investment and annuity fees (up 11 percent and 26 percent, respectively).
In commenting on Hancock’s operating results for the second quarter of 2006, George A. Schloegel, Chief Executive Officer, stated, “Management is pleased with the Company’s second quarter results and remains focused on continuing to be a cornerstone in the region’s rebuilding efforts.”
Balance Sheet Growth and CapitalAt June 30, 2006, Hancock had total loans of $3.04 billion and total deposits of $5.25 billion. The Company’s total asset size at June 30, 2006, was $6.16 billion. For the period from August 31, 2005, to June 30, 2006, total loans have grown $106 million, or 4 percent, and total deposits have grown $1.44 billion, or 38 percent, while total assets have increased $1.36 billion, or 28 percent.
Hancock’s period-end deposits were down $72 million compared to March 31, 2006. The majority of the period-end decrease was in transaction deposits partly offset by higher time deposits. However, as mentioned, average deposits were up $181 million between first and second quarter of 2006. The composition of the second quarter 2006 average total deposit base consisted of 22 percent non-interest-bearing demand accounts, 17 percent public funds, 32 percent low cost interest-bearing transaction accounts and 29 percent time deposits. This funding mix is slightly more favorable as compared to the same quarter a year ago. Loan growth in the Company’s operating region was up considerably as period-end loans were up $73 million, or 3 percent, as compared to the first quarter 2006. The majority of the period-end loan growth was reflected in commercial and direct consumer purpose loans.
The Loan/Deposit Ratio averaged 59 percent for the first quarter, but dropped to 57 percent for the second quarter of 2006 due to an average increase in deposits of $181 million, compared to $24 million increase in average loans for the same period. At June 30, 2006, the Loan/Deposit Ratio was 58 percent.
Hancock remains very well capitalized even with a $1.36 billion increase in total assets since the storm made landfall on August 29, 2005. As of June 30, 2006, Hancock’s Leverage (tier one) Ratio stands at 7.59 percent, while the Tangible Equity Ratio is 6.92 percent.
Net Interest IncomeNet interest income (te) for the second quarter of 2006 increased $11.93 million, or 25 percent, from the second quarter of 2005, and was up $1.45 million, or 2 percent, from the first quarter of 2006. The Company’s net interest margin (te) was 4.27 percent in the second quarter of 2006, 15 basis points narrower than the same quarter a year ago and 3 basis points narrower than the previous quarter.
Compared to the same quarter a year ago, the primary driver of the $11.93 million increase in net interest income (te) was a $1.27 billion, or 29 percent, increase in average earning assets mainly from average deposit growth of $1.37 billion, or 35 percent, much of which was related to deposit inflows in the aftermath of Hurricane Katrina. The $1.27 billion increase in average earning assets was deployed into the securities portfolio (average increase of $823 million, or 57 percent), short-term investments (average increase of $291 million), and into loans (average increase of $159 million, or 6 percent). Loans now comprise 53 percent of the Company’s average earning asset base, as compared to 65 percent for the same quarter a year ago. The net interest margin (te) narrowed 15 basis points as the increase in the average earning asset yield (24 basis points) did not offset the increase in total funding costs (39 basis points).
The Company’s level of net interest income (te) in the second quarter of 2006 increased $1.45 million, or 2 percent, from the prior quarter. Average earning assets increased $146 million, or 3 percent, over the previous quarter. Fueled by storm-related deposit inflows, average deposits increased $181 million, or 4 percent, compared to the prior quarter. Of the $146 million increase in average earning assets, $2 million was deployed into short-term investments (mostly fed funds), $24 million into loans, and the remaining $120 million, into the securities portfolio. Average loans were up $24 million from the prior quarter. The net interest margin (te) narrowed 3 basis points from the prior quarter as the yield on average earning assets increased 14 basis points, while total funding costs were up 17 basis points. The total cost of funds was up 17 basis points, mostly due to increase in cost of public fund deposits (indexed to short-term market rates) and higher rates on interest-bearing deposits (up 23 basis points).
Non-interest Income and Non-interest ExpenseExcluding the impact of securities transactions, non-interest income for the second quarter of 2006 was up $1.25 million, or 5 percent, compared to the same quarter a year ago. Non-interest income was up $1.05 million, or 4 percent, compared to the first quarter of 2006. 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 $1.10 million) mostly related to higher revenues associated with the July, 1, 2005, acquisition of J. Everett Eaves, Inc. In addition, debit card and merchant fees were up $789,000 and trust fees were up $550,000, when compared to the same quarter a year ago. However, service charges were down $1.24 million principally due to the impact of higher customer deposit balances related to the storm-related deposit inflows of the past year. The increase in non-interest income for the second quarter of 2006 (excluding securities transactions) compared to the prior quarter was due to increases in service charges (up $1.34 million), investment and annuity fees (up $327,000), and trust fees (up $331,000).
Operating expenses for the second quarter of 2006 were $8.67 million, or 20 percent, higher compared to the same quarter a year ago and were $2.01 million, or 4 percent, higher than the previous quarter. The increase from the same quarter a year ago was reflected in higher levels of personnel expense (up $3.48 million), occupancy expense (up $898,000), professional services expense (up $1.10 million), and all other expenses (up $3.19 million). The increase from the prior quarter was reflected in higher personnel expense (up $197,000) and higher professional services expense (up $1.50 million). The Company’s overall increase in operating expenses for the second quarter of 2006, while not containing any significant direct expenses related to the impact of Hurricane Katrina, did include an unquantifiable level of expenses indirectly related to the storm. This would include on-going expenditures related to occupancy (due to large numbers of employees remaining displaced from their regular pre-storm workplaces), equipment replacement, repair and maintenance expenses, and other costs.
Annualized net charge-offs as a percent of average loans for the second quarter of 2006 were 0.40 percent, compared to 0.24 percent for the second quarter of 2005, and were a negative (recovery) .01 percent in the first quarter of 2006. The second quarter’s net charge-offs of $3.00 million included $1.13 million of charge-offs that were classified as related to Hurricane Katrina. Excluding the storm-related items, net charge-offs for the second quarter of 2006 would have been $1.87 million, or 0.25 percent of average loans. During the first quarter of 2006, the Company recovered a large commercial credit totaling $1.75 million. In addition, net charge-offs of $597,000, or 0.08 percent, were related to Hurricane Katrina. Excluding the first quarter storm-related net charge-offs of $597,000 and the large commercial recovery of $1.75 million, net charge-offs for the first quarter were $1.05 million, or 0.14 percent of average loans.
As previously mentioned, no provision for loan losses was recorded in the second quarter of 2006 as management determined through careful analysis of available information on charge-offs, delinquencies, and loan growth, as well as the pace of recovery for the region, that no addition to the allowance for loan losses was necessary this quarter. The provision for loan losses in the second quarter of 2005 was $1.89 million and was a negative $705,000 in the first quarter of 2006 (due to the large commercial recovery).
Non-performing assets as a percent of total loans and foreclosed assets was 0.29 percent at June 30, 2006, compared to 0.35 percent at March 31, 2006. Compared to the second quarter of 2005, the ratio of non-performing assets as a percent of total loans and foreclosed assets was down 8 basis point from the 0.37 percent reported at June 30, 2005. Non-performing assets decreased $1.61 million from March 31, 2006, reflecting primarily lower levels of non-accrual assets. The composition of the Company’s $8.84 million non-performing asset base continues to reflect granularity with many smaller credits and/or properties (only 4 credits or properties exceeding $250,000 and 137 credits or properties below $250,000). The Company’s ratio of accruing loans 90 days or more past due to total loans was 0.22 percent at June 30, 2006, unchanged from March 31, 2006, and 0.14 percent at June 30, 2005. Accommodations in the form of loan payment extensions (most for 90 days) were granted on a customer-by-customer basis as a result of economic conditions brought by the impact of Hurricane Katrina. At June 30, 2006, accommodations in the form of loan payment extensions totaled $1.55 million (16 loans) and were not included in the aforementioned amounts and ratios of loans 90 days past due.
The Company’s allowance for loan losses was $70.96 million at June 30, 2006, down $3.00 million from the $73.96 million reported at March 31, 2006, and $29.58 million higher than the $41.38 million reported at June 30, 2005. The ratio of the allowance for loan losses as a percent of period-end loans was 2.33 percent at June 30, 2006, a decrease of 16 basis points from March 31, 2006. The allowance coverage ratio (allowance for loan losses to non-performers and past dues) was 457 percent in second quarter 2006, as compared to 433 percent in first quarter 2006, and 285 percent in second 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 in the fourth quarter of 2005, $597,000 during the first quarter of 2006, and $1.13 million in the second quarter of 2006 that were charged directly against the aforementioned allowance. In doing so, the storm-related allowance has been reduced by $4.08 million and, as of June 30, 2006, stands at $31.12 million. Hancock is continuously reviewing the adequacy of the special storm-related allowance, and while ratios of non-performing assets actually improved for the second quarter of 2006, management believes that sufficient uncertainty continues to exist at this time as to the ultimate level of storm-related losses to maintain the storm-related allowance at its current level.
Hancock Holding Company - parent company of Hancock Bank (Mississippi), Hancock Bank of Louisiana, Hancock Bank of Florida, and Magna Insurance Company - has assets of $6.16 billion. Founded in 1899, Hancock Bank stands among the strongest, safest financial institutions in the United States and is the only financial services company headquartered in the Gulf South to rate among the top 20 percent of America’s top-performing banks. Hancock offers comprehensive financial solutions through more than 140 banking and financial services offices and more than 130 automated teller machines across South Mississippi, Louisiana, southern Alabama, and the Florida Panhandle. Additional corporate information and on-line banking and bill pay services are available 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 Six Months Ended
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6/30/2006 3/31/2006 6/30/2005 6/30/2006 6/30/2005
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Per Common Share Data
Earnings per share:
Basic $0.68 $0.68 $0.56 $1.36 $1.03
Diluted $0.66 $0.67 $0.55 $1.32 $1.02
Cash dividends per share $0.220 $0.195 $0.165 $0.415 $0.330
Book value per share (period-end) $15.12 $15.06 $14.87 $15.12 $14.87
Tangible book value per share (period-end) $12.94 $12.85 $12.73 $12.94 $12.73
Weighted average number of shares:
Basic 32,531 32,393 32,396 32,462 32,429
Diluted 33,322 33,088 32,928 33,237 32,973
Period-end number of shares 32,555 32,494 32,310 32,555 32,310
Market data:
High closing price $57.19 $46.67 $34.87 $57.19 $34.87
Low closing price $44.02 $37.75 $28.25 $37.75 $28.25
Period end closing price $56.00 $46.52 $34.40 $56.00 $34.40
Trading volume 8,737 3,990 3,527 12,528 6,814
Other Period-end Data
FTE headcount 1,777 1,768 1,813 1,777 1,813
Tangible common equity $421,369 $417,684 $411,203 $421,369 $411,203
Tier I capital $457,738 $440,302 $416,312 $457,738 $416,312
Goodwill $59,060 $61,418 $55,409 $59,060 $55,409
Amortizable intangibles $10,575 $8,725 $11,746 $10,575 $11,746
Mortgage servicing intangibles $1,256 $1,384 $2,082 $1,256 $2,082
Common shares repurchased for publicly announced plans 22 17 96 39 136
Performance Ratios
Return on average assets 1.45% 1.49% 1.52% 1.47% 1.42%
Return on average common equity 17.89% 18.34% 15.28% 18.11% 14.31%
Earning asset yield (TE) 6.32% 6.17% 6.08% 6.25% 5.99%
Total cost of funds 2.05% 1.88% 1.66% 1.96% 1.61%
Net interest margin (TE) 4.27% 4.30% 4.42% 4.28% 4.39%
Non-interest expense as a percent of total revenue (TE)
before amortization of purchased intangibles
and securities transactions 59.13% 58.30% 57.83% 58.72% 58.88%
Common equity (period-end) as a percent of total assets (period-end) 8.00% 7.82% 10.03% 8.00% 10.03%
Leverage (Tier I) ratio 7.59% 7.45% 8.83% 7.59% 8.83%
Tangible common equity ratio 6.92% 6.75% 8.71% 6.92% 8.71%
Net charge-offs as a percent of average loans 0.40% -0.01% 0.24% 0.20% 0.28%
Allowance for loan losses as a percent of period-end loans 2.33% 2.49% 1.45% 2.33% 1.45%
Allowance for loan losses to NPAs + accruing loans 90 days past due 457.10% 432.85% 284.75% 457.10% 284.75%
Provision for loan losses to net charge-offs - 655.76% 111.83% -24.39% 117.72%
Loan/deposit ratio 57.40% 59.00% 73.63% 58.18% 73.02%
Non-interest income excluding
securities transactions as a percent of
total revenue (TE) 30.28% 29.92% 34.06% 30.10% 33.43%
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Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
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Three Months Ended Six Months Ended
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6/30/2006 3/31/2006 6/30/2005 6/30/2006 6/30/2005
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Asset Quality Information
Non-accrual loans $7,237 $8,676 $8,052 $7,237 $8,052
Foreclosed assets 1,606 1,779 2,567 1,606 2,567
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Total non-performing assets $8,843 $10,455 $10,619 $8,843 $10,619
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Non-performing assets as a percent of loans and foreclosed assets 0.29% 0.35% 0.37% 0.29% 0.37%
Accruing loans 90 days past due $6,681 $6,632 $3,914 $6,681 $3,914
Accruing loans 90 days past due as a percent of loans 0.22% 0.22% 0.14% 0.22% 0.14%
Non-performing assets + accruing loans 90 days past due
to loans and foreclosed assets 0.51% 0.57% 0.51% 0.51% 0.51%
Net charge-offs $3,001 ($108) $1,691 $2,893 $3,951
Net charge-offs as a percent of average loans 0.40% -0.01% 0.24% 0.20% 0.28%
Allowance for loan losses $70,960 $73,961 $41,382 $70,960 $41,382
Allowance for loan losses as a percent of period-end loans 2.33% 2.49% 1.45% 2.33% 1.45%
Allowance for loan losses to NPAs + accruing loans 90 days
past due 457.10% 432.85% 284.75% 457.10% 284.75%
Provision for loan losses - ($705) $1,891 ($705) $4,651
Provision for loan losses to net charge-offs - 655.76% 111.83% -24.39% 117.72%
Allowance for Loan Losses
Beginning Balance $73,961 $74,558 $41,182 $74,558 $40,682
Provision for loan loss - (705) 1,891 (705) 4,651
Charge-offs 4,742 3,922 3,539 8,664 7,565
Recoveries 1,741 4,030 1,848 5,771 3,614
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Net charge-offs 3,001 (108) 1,691 2,893 3,951
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Ending Balance $70,960 $73,961 $41,382 $70,960 $41,382
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Storm-related allowance for loan losses (included above) $31,120 $32,253 - $31,120 -
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Net Charge-off Information
Net charge-offs:
Commercial/real estate loans $620 ($1,769) $202 ($1,149) $972
Mortgage loans 28 181 (5) 209 63
Direct consumer loans 1,681 579 491 2,260 992
Indirect consumer loans 391 653 538 1,044 1,078
Finance company loans 281 248 465 529 846
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Total net charge-offs (including storm-related) $3,001 ($108) $1,691 $2,893 $3,951
Storm-related net charge-offs 1,133 597 - 1,731 -
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Total net charge-offs (excluding storm-related) $1,868 ($705) $1,691 $1,162 $3,951
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Average loans:
Commercial/real estate loans $1,699,768 $1,674,706 $1,523,348 $1,687,306 $1,507,267
Mortgage loans 410,522 410,023 417,307 410,274 412,310
Direct consumer loans 463,977 469,832 509,628 466,888 506,681
Indirect consumer loans 348,463 351,405 323,100 349,926 318,347
Finance Company loans 71,461 64,496 62,124 67,997 61,426
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Total average loans $2,994,191 $2,970,461 $2,835,506 $2,982,391 $2,806,031
Net charge-offs to average loans:
Commercial/real estate loans 0.15% -0.43% 0.05% -0.14% 0.13%
Mortgage loans 0.03% 0.18% 0.00% 0.10% 0.03%
Direct consumer loans 1.45% 0.50% 0.39% 0.98% 0.39%
Indirect consumer loans 0.45% 0.75% 0.67% 0.60% 0.68%
Finance Company loans 1.58% 1.56% 3.00% 1.57% 2.78%
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Total net charge-offs to average loans (including storm-related) 0.40% -0.01% 0.24% 0.20% 0.28%
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Total net charge-offs to average loans (excluding storm-related) 0.25% -0.10% 0.24% 0.08% 0.28%
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Hancock Holding Company - Add 8 -
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
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Three Months Ended Six Months Ended
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6/30/2006 3/31/2006 6/30/2005 6/30/2006 6/30/2005
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Period-end Balance Sheet
Commercial/real estate loans $1,727,236 $1,688,820 $1,539,576 $1,727,236 $1,539,576
Mortgage loans 423,001 408,750 424,725 423,001 424,725
Direct consumer loans 470,433 456,888 504,119 470,433 504,119
Indirect consumer loans 348,342 349,412 329,535 348,342 329,535
Finance Company loans 75,053 67,300 63,450 75,053 63,450
------------------ ------------- -------------- ------------------- --------------
Total loans 3,044,065 2,971,171 2,861,405 3,044,065 2,861,405
Securities 2,133,792 2,278,613 1,387,477 2,133,792 1,387,477
Short-term investments 414,062 417,373 84,453 414,062 84,453
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Earning assets 5,591,919 5,667,157 4,333,334 5,591,919 4,333,334
------------------ ------------- -------------- ------------------- --------------
Allowance for loan losses (70,960) (73,961) (41,382) (70,960) (41,382)
Other assets 634,233 663,393 497,113 634,233 497,113
------------------ ------------- -------------- ------------------- --------------
Total assets $6,155,192 $6,256,589 $4,789,065 $6,155,192 $4,789,065
================== ============= ============== =================== ==============
Non-interest bearing deposits $1,206,235 $1,225,744 $728,001 $1,206,235 $728,001
Interest bearing transaction deposits 1,640,552 1,730,873 1,303,152 1,640,552 1,303,152
Interest bearing Public Fund deposits 853,566 892,894 702,099 853,566 702,099
Time deposits 1,546,973 1,469,438 1,119,761 1,546,973 1,119,761
------------------ ------------- -------------- ------------------- --------------
Total interest bearing deposits 4,041,092 4,093,205 3,125,012 4,041,092 3,125,012
------------------ ------------- -------------- ------------------- --------------
Total deposits 5,247,327 5,318,949 3,853,013 5,247,327 3,853,013
Other borrowed funds 227,793 273,629 301,004 227,793 301,004
Other liabilities 187,812 174,568 154,608 187,812 154,608
Common shareholders' equity 492,260 489,443 480,440 492,260 480,440
------------------ ------------- -------------- ------------------- --------------
Total liabilities & common equity $6,155,192 $6,256,589 $4,789,065 $6,155,192 $4,789,065
================== ============= ============== =================== ==============
Average Balance Sheet
Commercial/real estate loans $1,699,768 $1,674,706 $1,523,348 $1,687,306 $1,507,267
Mortgage loans 410,522 410,023 417,307 410,274 412,310
Direct consumer loans 463,977 469,832 509,628 466,888 506,681
Indirect consumer loans 348,463 351,405 323,100 349,926 318,347
Finance Company loans 71,461 64,496 62,124 67,997 61,426
------------------ ------------- -------------- ------------------- --------------
Total loans 2,994,191 2,970,461 2,835,506 2,982,391 2,806,031
Securities 2,273,012 2,152,958 1,449,554 2,213,317 1,400,303
Short-term investments 338,443 335,986 47,260 337,221 89,685
------------------ ------------- -------------- ------------------- --------------
Earning average assets 5,605,646 5,459,405 4,332,320 5,532,930 4,296,020
------------------ ------------- -------------- ------------------- --------------
Allowance for loan losses (73,706) (74,429) (41,185) (74,066) (40,938)
Other assets 570,497 598,546 490,668 584,444 501,357
------------------ ------------- -------------- ------------------- --------------
Total assets $6,102,438 $5,983,521 $4,781,803 $6,043,308 $4,756,440
================== ============= ============== =================== ==============
Non-interest bearing deposits $1,177,756 $1,201,186 $730,570 $1,189,407 $715,938
Interest bearing transaction deposits 1,696,598 1,714,514 1,319,606 1,705,506 1,325,845
Interest bearing Public Fund deposits 837,751 712,394 683,665 775,418 697,649
Time deposits 1,504,343 1,406,969 1,116,973 1,455,925 1,103,246
------------------ ------------- -------------- ------------------- --------------
Total interest bearing deposits 4,038,692 3,833,877 3,120,245 3,936,850 3,126,740
------------------ ------------- -------------- ------------------- --------------
Total deposits 5,216,448 5,035,063 3,850,815 5,126,257 3,842,679
Other borrowed funds 210,388 287,738 304,637 248,849 288,147
Other liabilities 182,453 173,989 151,217 178,244 152,999
Common shareholders' equity 493,149 486,731 475,134 489,958 472,615
------------------ ------------- -------------- ------------------- --------------
Total liabilities & common equity $6,102,438 $5,983,521 $4,781,803 $6,043,308 $4,756,440
================== ============= ============== =================== ==============
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
--------------------------------------------- ----------------------------------
Three Months Ended Six Months Ended
--------------------------------------------- ----------------------------------
6/30/2006 3/31/2006 6/30/2005 6/30/2006 6/30/2005
---------------- ------------- -------------- ------------------- --------------
Average Balance Sheet Mix
Percentage of earning assets/funding sources:
Loans 53.41% 54.41% 65.45% 53.90% 65.32%
Securities 40.55% 39.44% 33.46% 40.00% 32.60%
Short-term investments 6.04% 6.15% 1.09% 6.09% 2.09%
---------------- ------------- -------------- ------------------- --------------
Earning average assets 100.00% 100.00% 100.00% 100.00% 100.00%
================ ============= ============== =================== ==============
Non-interest bearing deposits 21.01% 22.00% 16.86% 21.50% 16.67%
Interest bearing transaction deposits 30.27% 31.40% 30.46% 30.82% 30.86%
Interest bearing Public Fund deposits 14.94% 13.05% 15.78% 14.01% 16.24%
Time deposits 26.84% 25.77% 25.78% 26.31% 25.68%
---------------- ------------- -------------- ------------------- --------------
Total deposits 93.06% 92.23% 88.89% 92.65% 89.45%
Other borrowed funds 3.75% 5.27% 7.03% 4.50% 6.71%
Other net interest-free funding sources 3.19% 2.50% 4.08% 2.85% 3.85%
---------------- ------------- -------------- ------------------- --------------
Total average funding sources 100.00% 100.00% 100.00% 100.00% 100.00%
================ ============= ============== =================== ==============
Loan mix:
Commercial/real estate loans 56.77% 56.38% 53.72% 56.58% 53.72%
Mortgage loans 13.71% 13.80% 14.72% 13.76% 14.69%
Direct consumer loans 15.50% 15.82% 17.97% 15.65% 18.06%
Indirect consumer loans 11.64% 11.83% 11.39% 11.73% 11.35%
Finance Company loans 2.39% 2.17% 2.19% 2.28% 2.19%
---------------- ------------- -------------- ------------------- --------------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
================ ============= ============== =================== ==============
Average dollars (in thousands):
Loans $2,994,191 $2,970,461 $2,835,506 $2,982,391 $2,806,031
Securities 2,273,012 2,152,958 1,449,554 2,213,317 1,400,303
Short-term investments 338,443 335,986 47,260 337,221 89,685
---------------- ------------- -------------- ------------------- --------------
Earning average assets $5,605,646 $5,459,405 $4,332,320 $5,532,930 $4,296,020
Non-interest bearing deposits $1,177,756 $1,201,186 $730,570 $1,189,407 $715,938
Interest bearing transaction deposits 1,696,598 1,714,514 1,319,606 1,705,506 1,325,845
Interest bearing Public Fund deposits 837,751 712,394 683,665 775,418 697,649
Time deposits 1,504,343 1,406,969 1,116,973 1,455,925 1,103,246
---------------- ------------- -------------- ------------------- --------------
Total deposits 5,216,448 5,035,063 3,850,815 5,126,257 3,842,679
Other borrowed funds 210,388 287,738 304,637 248,849 288,147
Other net interest-free funding sources 178,810 136,604 176,868 157,824 165,194
---------------- ------------- -------------- ------------------- --------------
Total average funding sources $5,605,646 $5,459,405 $4,332,320 $5,532,930 $4,296,020
Loans:
Commercial/real estate loans $1,699,768 $1,674,706 $1,523,348 $1,687,306 $1,507,267
Mortgage loans 410,522 410,023 417,307 410,274 412,310
Direct consumer loans 463,977 469,832 509,628 466,888 506,681
Indirect consumer loans 348,463 351,405 323,100 349,926 318,347
Finance Company loans 71,461 64,496 62,124 67,997 61,426
---------------- ------------- -------------- ------------------- --------------
Total average loans $2,994,191 $2,970,461 $2,835,506 $2,982,391 $2,806,031
---------------- ------------- -------------- ------------------- --------------
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Three Months Ended
--------------------------------------------------------------------------------------------
06/30/06 03/31/06 06/30/05
-------------------------------- ---------------------------- ----------------------------
Interest Volume Rate Interest Volume Rate Interest Volume Rate
----------- ---------- -------- ----------- ----------- ----- -------- ---------- --------
Average Earning Assets
Commercial & real estate loans (TE) $30,613 $1,699,768 7.22% $28,637 $1,674,706 6.93% $23,775 $1,523,348 6.26%
Mortgage loans 5,980 410,522 5.83% 5,897 410,023 5.75% 5,886 417,307 5.64%
Consumer loans 18,356 883,901 8.33% 17,473 885,732 8.00% 17,018 894,852 7.63%
Loan fees & late charges 2,476 - 0.00% 2,320 - 0.00% 2,348 - 0.00%
---------- ----------- ------- ----------- ----------- --------------- ----------- -------
Total loans (TE) 57,425 2,994,191 7.69% 54,327 2,970,461 7.40% 49,028 2,835,506 6.93%
US treasury securities 454 42,028 4.33% 627 60,086 4.23% 61 11,076 2.20%
US agency securities 15,954 1,346,963 4.74% 13,786 1,194,312 4.62% 4,977 484,119 4.11%
CMOs 1,626 164,825 3.95% 1,810 184,276 3.93% 2,608 262,799 3.97%
Mortgage backed securities 5,643 484,002 4.66% 5,519 477,789 4.62% 5,170 468,239 4.42%
Municipals (TE) 2,673 158,553 6.74% 2,723 163,175 6.67% 2,841 162,467 6.99%
Other securities 944 76,641 4.93% 872 73,320 4.76% 785 60,853 5.16%
---------- ----------- ------- ----------- ----------- --------------- ----------- -------
Total securities (TE) 27,294 2,273,012 4.80% 25,336 2,152,958 4.71% 16,441 1,449,554 4.54%
Total short-term investments 3,656 338,443 4.33% 3,900 335,986 4.71% 299 47,260 2.54%
Average earning assets yield (TE) $88,375 $5,605,646 6.32% $83,563 $5,459,405 6.17% $65,768 $4,332,320 6.08%
Interest-bearing Liabilities
Interest-bearing transaction deposits $3,780 $1,696,598 0.89% $3,266 $1,714,514 0.77% $2,129 $1,319,606 0.65%
Time deposits 14,451 1,504,343 3.85% 13,005 1,406,969 3.75% 9,570 1,116,973 3.44%
Public Funds 8,658 837,751 4.15% 6,750 712,394 3.84% 4,408 683,665 2.59%
---------- ----------- -------- ----------- ----------- --------------- ----------- -------
Total interest bearing deposits 26,888 4,038,692 2.67% 23,021 3,833,877 2.44% 16,106 3,120,245 2.07%
Customer repos 1,573 200,973 3.14% 1,641 230,725 2.88% 1,095 231,456 1.90%
Other borrowings 174 9,415 7.43% 611 57,014 4.35% 759 73,181 4.16%
---------- ----------- ------- ----------- ----------- --------------- ----------- -------
Total borrowings 1,747 210,388 3.33% 2,252 287,738 3.17% 1,854 304,637 2.44%
Total interest bearing liab cost $28,636 $4,249,079 2.70% $25,273 $4,121,615 2.49% $17,961 $3,424,882 2.10%
Noninterest-bearing deposits 1,177,756 1,201,186 730,570
Other net interest-free funding sources 178,810 136,604 176,868
Total Cost of Funds $28,636 $5,605,646 2.05% $25,273 $5,459,405 1.88% $17,961 $4,332,320 1.66%
Net Interest Spread (TE) $59,740 3.61% $58,290 3.69% $47,807 3.98%
Net Interest Margin (TE) $59,740 $5,605,646 4.27% $58,290 $5,459,405 4.30% $47,807 $4,332,320 4.42%
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Six Months Ended
-----------------------------------------------------------------------------------
6/30/2006 6/30/2005
-------------------------------------- --------------------------------------------
Interest Volume Rate Interest Volume Rate
----------- ------------- --------- ----------- -------------- -------------
Average Earning Assets
Commercial & real estate loans (TE) $59,250 $1,687,306 7.08% $46,078 $1,507,267 6.16%
Mortgage loans 11,877 410,274 5.79% 11,583 412,310 5.62%
Consumer loans 35,829 884,811 8.17% 33,427 886,454 7.60%
Loan fees & late charges 4,796 - 0.00% 4,327 - 0.00%
----------- ------------- --------- ----------- -------------- -------------
Total loans (TE) 111,752 2,982,391 7.55% 95,415 2,806,031 6.85%
US treasury securities 1,081 51,007 4.27% 121 11,067 2.20%
US agency securities 29,740 1,271,059 4.68% 9,262 457,412 4.05%
CMOs 3,435 174,497 3.94% 5,294 264,906 4.00%
Mortgage backed securities 11,162 480,913 4.64% 9,717 440,560 4.41%
Municipals (TE) 5,396 160,851 6.71% 5,712 163,002 7.01%
Other securities 1,817 74,990 4.84% 1,456 63,356 4.60%
----------- ------------- --------- ----------- -------------- -------------
Total securities (TE) 52,630 2,213,317 4.76% 31,563 1,400,303 4.51%
Total short-term investments 7,556 337,221 4.52% 1,091 89,685 2.45%
Average earning assets yield (TE) $171,939 $5,532,930 6.25% $128,069 $4,296,020 5.99%
Interest-Bearing Liabilities
Interest-bearing transaction deposits $7,046 $1,705,506 0.83% $4,050 $1,325,845 0.62%
Time deposits 27,456 1,455,925 3.80% 18,929 1,103,246 3.46%
Public Funds 15,407 775,418 4.01% 8,159 697,649 2.36%
----------- ------------- --------- ----------- -------------- -------------
Total interest bearing deposits 49,909 3,936,850 2.56% 31,139 3,126,740 2.01%
Customer repos 3,214 215,766 3.00% 1,759 223,213 1.59%
Other borrowings 786 33,083 4.79% 1,352 64,934 4.20%
----------- ------------- --------- ----------- -------------- -------------
Total borrowings 3,999 248,849 3.24% 3,111 288,147 2.18%
Total interest bearing liab cost $53,908 $4,185,699 2.60% $34,249 $3,414,887 2.02%
Noninterest-bearing deposits 1,189,407 715,938
Other net interest-free funding sources 157,824 165,194
Total Cost of Funds $53,908 $5,532,930 1.96% $34,249 $4,296,020 1.61%
Net Interest Spread (TE) $118,030 3.65% $93,820 3.97%
Net Interest Margin (TE) $118,030 $5,532,930 4.28% $93,820 $4,296,020 4.39%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2004 2005 2006
------------------- -------------------------------------- -----------------
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
-------- -------- -------- -------- -------- -------- ------- -------
Per Common Share Data
Earnings per share:
Basic $0.47 $0.49 $0.48 $0.56 $0.04 $0.59 $0.68 $0.68
Diluted $0.47 $0.48 $0.47 $0.55 $0.04 $0.58 $0.67 $0.66
Cash dividends per share $0.165 $0.165 $0.165 $0.165 $0.195 $0.195 $0.195 $0.220
Book value per share (period-end) $14.16 $14.32 $14.16 $14.87 $14.52 $14.78 $15.06 $15.12
Tangible book value per share (period-end) $12.03 $12.16 $11.99 $12.73 $12.25 $12.55 $12.85 $12.94
Weighted average number of shares:
Basic 32,495 32,467 32,463 32,396 32,308 32,313 32,393 32,531
Diluted 33,054 33,076 33,019 32,928 32,940 32,980 33,088 33,322
Period-end number of shares 32,472 32,440 32,463 32,310 32,309 32,301 32,494 32,555
Market data:
High closing price $34.27 $34.83 $34.20 $34.87 $37.84 $39.90 $46.67 $57.19
Low closing price $27.32 $30.00 $30.25 $28.25 $29.93 $31.08 $37.75 $44.02
Period end closing price $31.79 $33.46 $32.50 $34.40 $34.14 $37.81 $46.52 $56.00
Trading volume 2,792 2,781 3,286 3,527 8,760 6,829 3,990 8,737
Other Period-end Data
FTE headcount 1,731 1,767 1,766 1,813 1,590 1,735 1,768 1,777
Tangible common equity $390,696 $394,389 $389,344 $411,203 $395,843 $405,216 $417,684 $421,369
Tier I capital $391,098 $399,320 $408,163 $416,312 $407,075 $420,281 $440,302 $457,738
Goodwill $56,474 $55,409 $55,409 $55,409 $61,428 $61,418 $61,418 $59,060
Amortizable intangibles $10,852 $12,263 $12,510 $11,746 $9,928 $9,204 $8,725 $10,575
Mortgage servicing intangibles $1,922 $2,520 $2,288 $2,082 $1,860 $1,577 $1,384 $1,256
Common shares repurchased for publicly
announced plans 84 - 40 96 12 - 17 22
Performance Ratios
Return on average assets 1.37% 1.39% 1.32% 1.52% 0.12% 1.39% 1.49% 1.45%
Return on average common equity 13.67% 13.54% 13.32% 15.28% 1.18% 15.98% 18.34% 17.89%
Earning asset yield (TE) 5.86% 6.00% 5.90% 6.08% 6.19% 6.14% 6.17% 6.32%
Total cost of funds 1.44% 1.47% 1.55% 1.66% 1.80% 1.70% 1.88% 2.05%
Net interest margin (TE) 4.42% 4.53% 4.35% 4.42% 4.40% 4.44% 4.30% 4.27%
Non-interest expense as a percent
of total revenue (TE) before amortization
of purchased intangibles, net storm-related
items, gain on sale of credit card
merchant and securities transactions 57.55% 54.95% 59.99% 57.83% 60.85% 56.89% 58.30% 59.13%
Common equity (period-end) as
a percent of total assets (period-end) 10.24% 9.96% 9.64% 10.03% 9.55% 8.02% 7.82% 8.00%
Leverage (Tier I) ratio 8.86% 8.97% 8.75% 8.83% 8.64% 7.85% 7.45% 7.59%
Tangible common equity ratio 8.83% 8.58% 8.28% 8.71% 8.17% 6.89% 6.75% 6.92%
Net charge-offs as a
percent of average loans 0.45% 0.56% 0.33% 0.24% 0.23% 0.41% -0.01% 0.40%
Allowance for loan losses as
a percent of period-end loans 1.45% 1.48% 1.48% 1.45% 2.57% 2.49% 2.49% 2.33%
Allowance for loan losses to
NPAs + loans 90 days past due 225.17% 251.85% 323.66% 284.75% 392.70% 195.50% 432.85% 457.10%
Provision for loan losses to net charge-offs 114.34% 150.98% 122.13% 111.83% 2165.65% 34.76% 655.76% -
Loan/deposit ratio 73.07% 75.19% 72.40% 73.63% 76.77% 66.44% 59.00% 57.40%
Non-interest income excluding
net storm-related items, gain on sale of
credit card merchant and
securities transactions as a percent
of total revenue (TE) 31.98% 32.37% 32.77% 34.06% 31.10% 29.68% 29.92% 30.28%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2004 2005 2006
----------------------- ----------------------------------------------- ----------------------
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Asset Quality Information
Non-accrual loans $7,770 $7,480 $6,335 $8,052 $10,373 $10,617 $8,676 $7,237
Foreclosed assets 4,151 3,513 3,591 2,567 2,973 1,898 1,779 1,606
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Total non-performing assets $11,921 $10,993 $9,926 $10,619 $13,346 $12,515 $10,455 $8,843
Non-performing assets as a percent
of loans and foreclosed assets 0.44% 0.40% 0.36% 0.37% 0.45% 0.42% 0.35% 0.29%
Accruing loans 90 days past due $5,277 $5,160 $2,798 $3,914 $6,156 $25,622 $6,632 $6,681
Accruing loans 90 days past due as
a percent of loans 0.20% 0.19% 0.10% 0.14% 0.21% 0.86% 0.22% 0.22%
Non-performing assets + accruing
loans 90 days past due to loans
and foreclosed assets 0.64% 0.59% 0.46% 0.51% 0.65% 1.28% 0.57% 0.51%
Net charge-offs $2,963 $3,839 $2,260 $1,691 $1,704 $3,104 ($108) $3,001
Net charge-offs as
a percent of average loans 0.45% 0.56% 0.33% 0.24% 0.23% 0.41% -0.01% 0.40%
Allowance for loan losses $38,725 $40,682 $41,182 $41,382 $76,584 $74,558 $73,961 $70,960
Allowance for loan losses as a
percent of period-end loans 1.45% 1.48% 1.48% 1.45% 2.57% 2.49% 2.49% 2.33%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 225.17% 251.85% 323.66% 284.75% 392.70% 195.50% 432.85% 457.10%
Provision for loan losses $3,388 $5,796 $2,760 $1,891 $36,905 $1,079 ($705) -
Provision for loan losses to net
charge-offs 114.34% 150.98% 122.13% 111.83% 2165.65% 34.76% 655.76% -
Net Charge-off Information
Net charge-offs:
Commercial/real estate loans $734 $1,003 $770 $202 ($17) $332 ($1,769) $620
Mortgage loans (22) 38 68 (5) 7 (7) 181 28
Direct consumer loans 1,222 1,173 501 491 861 1,831 579 1,681
Indirect consumer loans 402 910 540 538 342 272 653 391
Finance company loans 627 715 381 465 511 676 248 281
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Total net charge-offs (including
storm-related) $2,963 $3,839 $2,260 $1,691 $1,704 $3,104 ($108) $3,001
Storm-related net charge-offs - - - - - 2,350 597 1,133
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Total net charge-offs (excluding
storm-related) $2,963 $3,839 $2,260 $1,691 $1,704 $754 ($705) $1,868
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Average loans:
Commercial/real estate loans $1,396,149 $1,439,074 $1,491,008 $1,523,348 $1,584,244 $1,660,804 $1,674,706 $1,699,768
Mortgage loans 400,710 408,535 407,258 417,307 430,615 442,977 410,023 410,522
Direct consumer loans 487,139 498,336 503,700 509,628 504,362 489,150 469,832 463,977
Indirect consumer loans 296,755 307,413 313,542 323,100 335,482 342,203 351,405 348,463
Finance Company loans 59,935 60,604 60,720 62,124 64,006 63,663 64,496 71,461
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Total average loans $2,640,689 $2,713,963 $2,776,229 $2,835,506 $2,918,709 $2,998,797 $2,970,461 $2,994,191
Net charge-offs to average loans:
Commercial/real estate loans 0.21% 0.28% 0.21% 0.05% 0.00% 0.08% -0.43% 0.15%
Mortgage loans -0.02% 0.04% 0.07% 0.00% 0.01% -0.01% 0.18% 0.03%
Direct consumer loans 1.00% 0.94% 0.40% 0.39% 0.68% 1.49% 0.50% 1.45%
Indirect consumer loans 0.54% 1.18% 0.70% 0.67% 0.40% 0.32% 0.75% 0.45%
Finance Company loans 4.16% 4.69% 2.54% 3.00% 3.17% 4.21% 1.56% 1.58%
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Total net charge-offs to average
loans (excl storm-related) 0.45% 0.56% 0.33% 0.24% 0.23% 0.41% -0.01% 0.40%
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Total net charge-offs to average
loans (incl storm-related) 0.45% 0.56% 0.33% 0.24% 0.23% 0.10% -0.10% 0.25%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2004 2005 2006
---------------------- --------------------------------------------- -----------------------
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
--------- ------------ ---------- ---------- ------------ ---------- ------------ ----------
Income Statement
Interest income $57,424 $59,190 $60,531 $64,027 $65,644 $73,429 $81,590 $86,404
Interest income (TE) 59,184 61,051 62,302 65,767 67,506 75,433 83,563 88,375
Interest expense 14,567 15,014 16,289 17,961 19,659 20,911 25,273 28,636
--------- ------------ ---------- ---------- ------------ ---------- ------------ ----------
Net interest income (TE) 44,617 46,037 46,013 47,807 47,847 54,522 58,290 59,740
Provision for loan losses 3,388 5,796 2,760 1,891 36,905 1,079 (705) -
Non-interest income excluding net
storm-related items
gain on sale of credit card
merchant and securities transactions 20,973 22,037 22,427 24,695 21,600 23,016 24,890 25,942
Net storm-related items - - - - 12,276 (5,692) - -
Gain on sale of credit card merchant - - - - - - - -
Securities transactions gains/(losses) (2) 4 7 (15) (18) (27) 118 -
Non-interest expense 38,306 37,945 41,642 42,505 42,770 44,626 49,165 51,172
--------- ------------ ---------- ---------- ------------ ---------- ------------ ----------
Income before income taxes 22,134 22,475 22,273 26,350 168 24,112 32,865 32,536
Income tax expense 6,737 6,684 6,836 8,256 (1,267) 5,047 10,854 10,539
--------- ------------ ---------- ---------- ------------ ---------- ------------ ----------
Net income $15,396 $15,791 $15,438 $18,094 $1,435 $19,065 $22,011 $21,998
========= ============ ========== ========== ============ ========== ============ ==========
Non-interest Income
and Operating Expense
Service charges on deposit accounts $11,567 $11,062 $9,490 $10,459 $7,975 $6,850 $7,884 $9,223
Trust fees 2,281 2,487 2,541 2,859 2,761 2,946 3,078 3,409
Debit card & merchant fees 1,197 1,172 1,030 1,074 1,055 1,717 1,709 1,863
Insurance fees 2,056 1,824 3,881 3,499 4,883 4,837 5,159 4,596
Investment & annuity fees 438 581 1,188 1,547 1,304 1,037 1,264 1,591
ATM fees 1,129 1,119 1,372 1,154 871 805 1,294 1,273
Secondary mortgage market operations 529 1,489 499 676 377 670 817 749
Other income 1,776 2,302 2,426 3,428 2,374 4,154 3,684 3,239
--------- ------------ ---------- ---------- ------------ ---------- ------------ ----------
Non-interest income excluding
securities transactions $20,973 $22,037 $22,427 $24,695 $21,600 $23,016 $24,890 $25,942
Net storm-related items - - - - 12,276 (5,692) - -
Gain on sale of credit card merchant - - - - - - - -
Securities transactions gains/(losses) (2) 4 7 (15) (18) (27) 118 -
--------- ------------ ---------- ---------- ------------ ---------- ------------ ----------
Total non-interest income including
storm-related items, gains on sale
credit card merchant and
securities transactions $20,971 $22,041 $22,433 $24,680 $33,858 $17,298 $25,008 $25,942
========= ============ ========== ========== ============ ========== ============ ==========
Personnel expense $20,664 $21,706 $22,379 $22,925 $24,275 $24,580 $26,202 $26,400
Occupancy expense (net) 2,470 2,627 2,495 2,576 2,617 3,237 3,659 3,474
Equipment expense 2,419 2,548 2,357 2,366 2,319 2,511 2,668 2,816
Other operating expense 12,194 10,526 13,828 14,059 13,044 13,780 15,961 17,976
Amortization of intangibles 558 538 584 578 514 518 675 507
--------- ------------ ---------- ---------- ------------ ---------- ------------ ----------
Total non-interest expense $38,306 $37,945 $41,642 $42,505 $42,770 $44,626 $49,165 $51,172