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):
October 17, 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 2.02. Results of Operations and Financial Condition. On October 17, 2006,
Hancock Holding Company issued a press release announcing earnings for third quarter of 2006.
The press release and related financial statements are attached hereto as Exhibit 99.1.
Item 8.01. Other Events. On October 17, 2006, Hancock Holding Company
issued a press release announcing earnings for third 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 October 17, 2006, headed "Hancock Holding
Company announces earnings for third 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: October 17, 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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October 17, 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 (October 17, 2006) — Hancock Holding Company (NASDAQ: HBHC) and Leo W. Seal, Jr., President of Hancock Holding Company, today announced earnings for the quarter ended September 30, 2006. Hancock’s third quarter 2006 earnings were $36.0 million, an increase of $34.6 million from the third quarter of 2005. Diluted earnings per share for the third quarter of 2006 were $1.08, an increase of $1.04 from the same quarter a year ago.
Hancock’s earnings for the third quarter of 2006 included a $20.0 million negative provision for loan losses, which included a partial reversal of the Company’s storm-related allowance for loan losses. In the third quarter of 2005, Hancock established a $35.2 million allowance for loan losses related to projected credit losses associated with the impact of Hurricane Katrina. Through the third quarter of 2006, the Company has experienced storm-related charge-offs of about $4.4 million. While management has determined that the potential for further storm-related charge-offs is present, the levels are projected to be lower than originally anticipated. The Company reviewed the asset quality of significant credits included in the original $35.2 million storm-related allowance and determined that this partial reversal was appropriate.
Excluding the aforementioned $20.0 million (pre-tax) negative provision related to the storm, adjusted earnings for third quarter 2006 were $23.0 million. Adjusted earnings for the third quarter of 2005 were $18.8 million (after excluding the pre-tax impact of $35.2 million to establish a storm-related provision for credit losses, a net gain on insurance less direct expenses incurred of $12.3 million, and approximately $3.8 million of waived fees). Adjusted diluted earnings per share were $0.69 for the third quarter of 2006, compared to $0.57 for the third quarter of 2005. Reported earnings for second quarter 2006 (there were no storm-related adjustments) were $22.0 million and diluted earnings per share were $0.66.
Hancock’s third quarter performance included the following significant items:
o Superior Returns: Hancock's third quarter adjusted return on average assets was 1.51 percent, with an
adjusted return on average common equity of 17.63 percent
o Strong Loan Growth: Third quarter average loans were up $86.3 million, or 12 percent annualized, compared
to the second quarter of 2006, and were up $161.7 million, or 6 percent, compared to the third quarter of
2005. Loan growth was mostly reflected in commercial purpose and mortgage loans and is indicative of the
on-going recovery in the region.
o Net Interest Margin: The Company's net interest margin (te) of 4.29 percent narrowed 11 basis points from
the third quarter of 2005, but was 2 basis points wider than the previous quarter. Net interest income
(te) was $11.4 million, or 24 percent, higher than last year's third quarter, but was $0.5 million lower
than the previous quarter.
o Asset Quality: Net charge-offs for the third quarter were $2.6 million, or 0.34 percent of average loans,
down $0.4 million from the $3.0 million, or 0.40 percent of average loans, reported for the second quarter
of 2006. Storm-related net charge-offs for the third quarter of 2006 totaled $0.3 million and were $4.4
million since the third quarter of 2005. Non-performing assets as a percent of loans and foreclosed
property fell 9 basis points from the prior quarter to 0.20 percent at September 30, 2006. Loans past due
90 days at September 30, 2006 were 0.12 percent, compared to 0.22 percent at June 30, 2006.
o Allowance for Loan Losses: Hancock's allowance for loan losses at September 30, 2006 was $48.4 million,
or 1.54 percent of period-end loans, a decrease of $22.6 million from the June 30, 2006 level.
George A. Schloegel, Chief Executive Officer of Hancock Holding Company, commented on the Company’s third quarter operating results, “The recovery work that continues on a daily basis in our region is symbolic of a recovering economy that will thrive as the rebuilding efforts ramp up. With third quarter loan growth of $86.3 million compared to last quarter, Hancock stands ready to continue participating in and leading the region’s rebuilding efforts.”
Balance Sheet Growth and Capital
At September 30, 2006, Hancock’s total loans were $3.1 billion, which represented an increase of $157.0 million, or 5 percent, from September 30, 2005. Period-end loans were up $97.1 million, or 3 percent, compared to June 30, 2006. As mentioned, average loans were up $86.3 million, or 12 percent annualized, from the second quarter. Of that increase, approximately $50.4 million of growth was in Louisiana, $28.9 million in Mississippi and $7.0 million in Florida. The Company expects that this quarter’s loan growth is representative of the rebuilding efforts throughout the region and is sustainable.
Period-end deposits for the third quarter were $5.0 billion, up $975.4 million, or 24 percent, from September 30, 2005, but were down $246.8 million, or 5 percent, from June 30, 2006. The Company believes that the third quarter’s net out flows of deposits is a signal that businesses and consumers alike are beginning their own rebuilding efforts as the overwhelming majority of deposit outflows occurred in transaction deposits (both interest and non-interest bearing). The quarter-end deposit balances do not include any significant funds from the distribution of Community Development Block Grants (storm- related federal aid to homeowners), which have not yet begun in Louisiana or Mississippi.
The Company’s total assets at September 30, 2006 were $6.1 billion, up $1.2 billion, or 25 percent compared to last year, but down $33.5 million, or 0.5 percent, from June 30, 2006. Hancock remains very well capitalized, even with a significant increase in total assets from last year. As of September 30, 2006, Hancock’s Leverage (tier one) Ratio stands at 8.15 percent, while the Tangible Equity Ratio was 7.79 percent.
Net Interest Income
Net interest income (te) for the third quarter increased $11.4 million, or 24 percent, from the third quarter of 2005, but was $0.5 million lower then the second quarter of 2006. The Company’s net interest margin (te) was 4.29 percent in the third quarter, 11 basis points narrower than the same quarter a year ago and 2 basis points wider than the previous quarter.
Compared to the same quarter a year ago, the primary driver of the $11.4 million increase in net interest income (te) was a $1.2 billion, or 27 percent, increase in average earning assets mainly from average deposit inflows of $1.3 billion, or 33 percent. The increase in deposits was related to insurance settlements for business and consumers, as well as other forms of federal aid to customers impacted by Hurricane Katrina. Of the $1.2 billion increase in average earning assets, $161.7 million was deployed into loans and $1.0 billion into securities and other short-term investments. The net interest margin (te) narrowed 11 basis points as the increase in the average earning asset yield (40 basis points) did not offset the increase in total funding costs (51 basis points).
The Company’s level of net interest income (te) in the third quarter decreased $0.5 million, or 0.8 percent, from the prior quarter. Average earning assets decreased $96.9 million, or 2 percent, from the previous quarter due to average deposit outflows of $164.5 million, or 3 percent. Of the $164.5 million decrease in average deposits, $79.0 million was in non-interest bearing deposits and $106.3 million in interest-bearing transactions deposits. The majority of deposit outflows were believed to be related to rebuilding efforts throughout the Company’s operating region. Average loans were up $86.3 million, or 12 percent annualized, from the prior quarter, reflected mostly in higher levels of commercial purpose loans and mortgage loans. The net interest margin (te) widened 2 basis points from the prior quarter as the yield on average earning assets increased 27 basis points, while total funding costs were up 25 basis points. The yield on average earning assets continues to be impacted by the larger percent of the Company’s earning assets in securities and short-term investments (44 percent) than deployed into loans (56 percent). The total cost of funds was up 25 basis points mostly due to increase in cost of public fund deposits (indexed to short-term market rates) as well as higher rates paid on time deposits.
Non-interest Income and Non-interest Expense
Excluding the impact of storm-related gains/(losses) and securities transactions, non-interest income for the third quarter was up $4.0 million, or 19 percent, compared to the same quarter a year ago. Non-interest income was down $0.3 million, or 1 percent, compared to the second quarter. The primary factors impacting the higher levels of non-interest income as compared to the same quarter a year ago, were higher levels of service charge fees (up $1.7 million, or 22 percent). In addition, debit card and merchant fees were up $0.7 million, when compared to the same quarter a year ago. However, insurance fees were down $0.7 million. The decrease in non-interest income for the third quarter (excluding securities transactions) compared to the prior quarter was due to decreases in trust fees (down $0.2 million) and insurance fees (down $0.5 million).
Operating expenses for the third quarter were $7.6 million, or 18 percent, higher compared to the same quarter a year ago, but were $0.8 million, or 2 percent, lower than the previous quarter. The increase from the same quarter a year ago was reflected in higher levels of personnel expense (up $2.8 million), data processing expense (up $1.7 million), professional services expense (up $1.3 million) and all other expenses (up $1.8 million). The decrease in non-interest expenses from the prior quarter was reflected in lower levels of occupancy expense (down $0.6 million) and other operating expenses (down $0.9 million), offset by a higher level of personnel expense (up $0.7 million).
Asset Quality
Annualized net charge-offs, as a percent of average loans, for the third quarter were 0.34 percent, compared to 0.40 percent for the second quarter, and to 0.23 percent in the third quarter of 2005. During the third quarter of 2006, the Company recorded $20.0 million negative provision, primarily as a result of a better than expected credit loss experience related to Hurricane Katrina. No provision for loan losses was booked in the second quarter of 2006, while the third quarter of 2005‘s provision was $36.9 million, of which $35.2 million was related to the establishment of a storm — related allowance for loan losses.
Non-performing assets as a percent of total loans and foreclosed assets was 0.20 percent at September 30, 2006, compared to 0.29 percent at June 30, 2006. Compared to the third quarter of 2005, the ratio of non-performing assets as a percent of total loans and foreclosed assets was down 25 basis points. Non-performing assets decreased $2.7 million from June 30, 2006, reflecting primarily lower levels of non-accrual loans. The Company’s ratio of accruing loans 90 days or more past due to total loans was 0.12 percent at September 30, 2006, compared to 0.22 percent at June 30, 2006 and to 0.21 percent at September 30, 2005.
The Company’s allowance for loan losses was $48.4 million at September 30, 2006, down $22.6 million from the $71.0 million reported at June 30, 2006, and $28.2 million lower than the $76.6 million reported at September 30, 2005. The ratio of the allowance for loan losses as a percent of period-end loans was 1.54 percent at September 30, 2006, and 2.33 percent at June 30, 2006. The allowance coverage ratio (allowance for loan losses to non-performers and past dues) was 495 percent in third quarter 2006, as compared to 457 percent in second quarter, and 393 percent in third quarter 2005. As previously mentioned, the Company had established a specific allowance of $35.2 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 through September 30, 2006 of $4.4 million directly against the aforementioned allowance. In the third quarter, the Company recorded a $20.0 million negative loan loss provision which included a partial reversal of the storm-related allowance.
General
Hancock Holding Company — parent company of Hancock Bank (Mississippi), Hancock Bank of Louisiana, Hancock Bank of Florida, and Magna Insurance Company — has assets of $6.1 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, south Alabama and the Florida Panhandle. Additional corporate information and on-line banking and bill pay services are available 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.
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Three Months Ended Nine Months Ended
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9/30/2006 6/30/2006 9/30/2005 9/30/2006 9/30/2005
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Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Per Common Share Data
Earnings per share:
Basic $1.11 $0.68 $0.04 $2.46 $1.08
Diluted $1.08 $0.66 $0.04 $2.41 $1.06
Cash dividends per share $0.240 $0.220 $0.195 $0.655 $0.525
Book value per share (period-end) $16.64 $15.12 $14.52 $16.64 $14.52
Tangible book value per share (period-end) $14.47 $12.94 $12.25 $14.47 $12.25
Weighted average number of shares:
Basic 32,566 32,531 32,308 32,500 32,388
Diluted 33,333 33,322 32,940 33,274 32,959
Period-end number of shares 32,584 32,555 32,309 32,584 32,309
Market data:
High closing price $56.79 $57.19 $37.84 $57.19 $37.84
Low closing price $49.71 $44.02 $29.93 $37.75 $28.25
Period end closing price $53.55 $56.00 $34.14 $53.55 $34.14
Trading volume 8,135 8,737 8,760 20,883 15,575
Other Period-end Data
FTE headcount 1,788 1,777 1,590 1,788 1,590
Tangible common equity $471,387 $421,369 $395,843 $471,387 $395,843
Tier I capital $487,668 $457,738 $407,075 $487,668 $407,075
Goodwill $59,683 $59,060 $61,428 $59,683 $61,428
Amortizable intangibles $9,938 $10,575 $9,928 $9,938 $9,928
Mortgage servicing intangibles $1,093 $1,256 $1,860 $1,093 $1,860
Common shares repurchased for publicly announced plans - 22 12 39 148
Performance Ratios
Return on average assets 2.36% 1.45% 0.12% 1.77% 0.98%
Return on average common equity 27.58% 17.89% 1.18% 21.42% 9.81%
Earning asset yield (TE) 6.60% 6.32% 6.19% 6.36% 6.06%
Total cost of funds 2.30% 2.05% 1.80% 2.08% 1.67%
Net interest margin (TE) 4.29% 4.27% 4.40% 4.28% 4.39%
Non-interest expense as a percent of total revenue (TE)
before amortization of purchased intangibles, net storm-related
gain/(loss) and securities transactions 58.76% 59.13% 60.85% 58.73% 59.53%
Common equity (period-end) as a percent of total assets (period-end) 8.86% 8.00% 9.55% 8.86% 9.55%
Leverage (Tier I) ratio 8.15% 7.59% 8.64% 8.15% 8.64%
Tangible common equity ratio 7.79% 6.92% 8.17% 7.79% 8.17%
Net charge-offs as a percent of average loans 0.34% 0.40% 0.23% 0.24% 0.27%
Allowance for loan losses as a percent of period-end loans 1.54% 2.33% 2.57% 1.54% 2.57%
Allowance for loan losses to NPAs + accruing loans 90 days past due 494.65% 457.10% 392.70% 494.65% 392.70%
Loan/deposit ratio 60.97% 57.40% 76.77% 59.11% 74.28%
Non-interest income excluding net storm-related gain/(loss)
and securities transactions as a percent of
total revenue (TE) 30.18% 30.28% 31.10% 30.13% 32.66%
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
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Three Months Ended Nine Months Ended
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9/30/2006 6/30/2006 9/30/2005 9/30/2006 9/30/2005
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Asset Quality Information
Non-accrual loans $5,179 $7,237 $10,373 $5,179 $10,373
Foreclosed assets 970 1,606 2,973 970 2,973
Total non-performing assets $6,149 $8,843 $13,346 $6,149 $13,346
Non-performing assets as a percent of loans and foreclosed
assets 0.20% 0.29% 0.45% 0.20% 0.45%
Accruing loans 90 days past due $3,626 $6,681 $6,156 $3,626 $6,156
Accruing loans 90 days past due as a percent of loans 0.12% 0.22% 0.21% 0.12% 0.21%
Non-performing assets + accruing loans 90 days past due
to loans and foreclosed assets 0.31% 0.51% 0.65% 0.31% 0.65%
Net charge-offs $2,608 $3,001 $1,704 $5,501 $5,655
Net charge-offs as a percent of average loans 0.34% 0.40% 0.23% 0.24% 0.27%
Allowance for loan losses $48,352 $70,960 $76,584 $48,352 $76,584
Allowance for loan losses as a percent of period-end loans 1.54% 2.33% 2.57% 1.54% 2.57%
Allowance for loan losses to NPAs + accruing loans 90 days
past due 494.65% 457.10% 392.70% 494.65% 392.70%
Provision for loan losses ($20,000) - $36,905 ($20,705) $41,556
Allowance for Loan Losses
Beginning Balance $70,960 $73,961 $41,382 $74,558 $40,682
Provision for loan loss (20,000) - 36,905 (20,705) 41,556
Charge-offs 6,358 4,742 3,699 15,022 11,264
Recoveries 3,750 1,741 1,995 9,521 5,609
Net charge-offs 2,608 3,001 1,704 5,501 5,655
Ending Balance $48,352 $70,960 $76,584 $48,352 $76,584
Net Charge-off Information
Net charge-offs:
Commercial/real estate loans $522 $620 ($17) ($628) $955
Mortgage loans 367 28 7 576 70
Direct consumer loans 1,003 1,681 861 3,264 1,853
Indirect consumer loans 294 391 342 1,338 1,420
Finance company loans 422 281 511 951 1,357
Total net charge-offs (including storm-related) $2,608 $3,001 $1,704 $5,501 $5,655
Storm-related net charge-offs 284 1,133 - 2,014 -
Total net charge-offs (excluding storm-related) $2,324 $1,868 $1,704 $3,487 $5,655
Average loans:
Commercial/real estate loans $1,759,173 $1,699,768 $1,584,244 $1,711,525 $1,533,208
Mortgage loans 423,610 410,522 430,615 414,768 418,479
Direct consumer loans 470,771 463,977 504,362 468,196 505,899
Indirect consumer loans 347,404 348,463 335,482 349,076 324,122
Finance Company loans 79,483 71,461 64,006 71,868 62,295
Total average loans $3,080,442 $2,994,191 $2,918,709 $3,015,434 $2,844,003
Net charge-offs to average loans:
Commercial/real estate loans 0.12% 0.15% 0.00% -0.05% 0.08%
Mortgage loans 0.34% 0.03% 0.01% 0.19% 0.02%
Direct consumer loans 0.85% 1.45% 0.68% 0.93% 0.49%
Indirect consumer loans 0.34% 0.45% 0.40% 0.51% 0.59%
Finance Company loans 2.11% 1.58% 3.17% 1.77% 2.91%
Total net charge-offs to average loans (including storm-related) 0.34% 0.40% 0.23% 0.24% 0.27%
Total net charge-offs to average loans (excluding storm-related) 0.30% 0.25% 0.23% 0.15% 0.27%
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
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Three Months Ended Nine Months Ended
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9/30/2006 6/30/2006 9/30/2005 9/30/2006 9/30/2005
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Income Statement
Interest income $89,233 $86,404 $65,644 $257,226 $190,202
Interest income (TE) 91,275 88,375 67,506 263,226 195,576
Interest expense 31,988 28,636 19,659 85,897 53,908
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Net interest income (TE) 59,286 59,740 47,847 177,329 141,667
Provision for loan losses (20,000) - 36,905 (20,705) 41,556
Non-interest income excluding net storm-related
gain/(loss) and securities transactions 25,627 25,942 21,600 76,459 68,722
Net storm-related gain/(loss) - - 12,276 - 12,276
Securities transactions gains/(losses) 110 - (18) 228 (26)
Non-interest expense 50,336 51,172 42,770 150,674 126,917
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Income before income taxes 52,645 32,536 168 118,047 48,791
Income tax expense 16,614 10,539 (1,267) 38,006 13,824
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Net income $36,031 $21,998 $1,435 $80,041 $34,968
========= ============ ========== ============= ============
Non-interest Income and Operating Expense
Service charges on deposit accounts $9,719 $9,223 $7,975 $26,826 $27,924
Trust fees 3,175 3,409 2,761 9,662 8,161
Debit card & merchant fees 1,744 1,863 1,055 5,316 3,160
Insurance fees 4,146 4,596 4,883 13,900 12,262
Investment & annuity fees 1,595 1,591 1,304 4,450 4,039
ATM fees 1,223 1,273 871 3,790 3,397
Secondary mortgage market operations 1,018 749 377 2,583 1,552
Other income 3,009 3,239 2,374 9,932 8,228
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Non-interest income excluding net storm-related
gain/(loss) and securities transactions $25,627 $25,942 $21,600 $76,459 $68,722
Net storm-related gain/(loss) - - 12,276 - 12,276
Securities transactions gains/(losses) 110 - (18) 228 (26)
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Total non-interest income including net storm-related
gain/(loss) and securities transactions $25,737 $25,942 $33,858 $76,686 $80,972
========= ============ ========== ============= ============
Personnel expense $27,059 $26,400 $24,275 $79,661 $69,579
Occupancy expense (net) 2,882 3,474 2,617 10,015 7,688
Equipment expense 2,647 2,816 2,319 8,131 7,042
Other operating expense 17,304 17,976 13,044 51,241 40,931
Amortization of intangibles 445 507 514 1,626 1,676
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Total non-interest expense $50,336 $51,172 $42,770 $150,674 $126,917
========= ============ ========== ============= ============
Hancock Holding Company - Add 8 -
Financial Highlights
(amounts in thousands)
(unaudited)
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Three Months Ended Nine Months Ended
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9/30/2006 6/30/2006 9/30/2005 9/30/2006 9/30/2005
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Period-end Balance Sheet
Commercial/real estate loans $1,800,643 $1,727,236 $1,637,011 $1,800,643 $1,637,011
Mortgage loans 430,086 423,001 441,512 430,086 441,512
Direct consumer loans 477,142 470,433 501,704 477,142 501,704
Indirect consumer loans 350,013 348,342 339,822 350,013 339,822
Finance Company loans 83,278 75,053 64,121 83,278 64,121
------------------ ------------- -------------- ------------------- --------------
Total loans 3,141,162 3,044,065 2,984,170 3,141,162 2,984,170
Securities 2,303,396 2,133,792 1,323,166 2,303,396 1,323,166
Short-term investments 74,902 414,062 141,270 74,902 141,270
------------------ ------------- -------------- ------------------- --------------
Earning assets 5,519,461 5,591,919 4,448,606 5,519,461 4,448,606
------------------ ------------- -------------- ------------------- --------------
Allowance for loan losses (48,352) (70,960) (76,584) (48,352) (76,584)
Other assets 650,556 634,233 541,467 650,556 541,467
------------------ ------------- -------------- ------------------- --------------
Total assets $6,121,665 $6,155,192 $4,913,490 $6,121,665 $4,913,490
================== ============= ============== =================== ==============
Non-interest bearing deposits $1,062,348 $1,206,235 $909,585 $1,062,348 $909,585
Interest bearing transaction deposits 1,510,785 1,640,552 1,369,886 1,510,785 1,369,886
Interest bearing Public Fund deposits 795,927 853,566 574,603 795,927 574,603
Time deposits 1,631,504 1,546,973 1,171,080 1,631,504 1,171,080
------------------ ------------- -------------- ------------------- --------------
Total interest bearing deposits 3,938,216 4,041,092 3,115,568 3,938,216 3,115,568
------------------ ------------- -------------- ------------------- --------------
Total deposits 5,000,565 5,247,327 4,025,153 5,000,565 4,025,153
Other borrowed funds 430,827 227,793 249,228 430,827 249,228
Other liabilities 148,173 187,812 170,049 148,173 170,049
Common shareholders' equity 542,101 492,260 469,059 542,101 469,059
------------------ ------------- -------------- ------------------- --------------
Total liabilities & common equity $6,121,665 $6,155,192 $4,913,490 $6,121,665 $4,913,490
================== ============= ============== =================== ==============
Average Balance Sheet
Commercial/real estate loans $1,759,173 $1,699,768 $1,584,244 $1,711,525 $1,533,208
Mortgage loans 423,610 410,522 430,615 414,768 418,479
Direct consumer loans 470,771 463,977 504,362 468,196 505,899
Indirect consumer loans 347,404 348,463 335,482 349,076 324,122
Finance Company loans 79,483 71,461 64,006 71,868 62,295
------------------ ------------- -------------- ------------------- --------------
Total loans 3,080,442 2,994,191 2,918,709 3,015,434 2,844,003
Securities 2,334,242 2,273,012 1,364,219 2,254,068 1,388,143
Short-term investments 94,026 338,443 52,933 255,265 77,300
------------------ ------------- -------------- ------------------- --------------
Earning average assets 5,508,709 5,605,646 4,335,861 5,524,767 4,309,446
------------------ ------------- -------------- ------------------- --------------
Allowance for loan losses (61,525) (73,706) (41,765) (69,840) (41,217)
Other assets 602,833 570,497 487,867 590,641 496,811
------------------ ------------- -------------- ------------------- --------------
Total assets $6,050,017 $6,102,438 $4,781,962 $6,045,569 $4,765,041
================== ============= ============== =================== ==============
Non-interest bearing deposits $1,098,716 $1,177,756 $729,216 $1,158,844 $720,413
Interest bearing transaction deposits 1,590,319 1,696,598 1,311,779 1,666,689 1,321,105
Interest bearing Public Fund deposits 791,825 837,751 617,017 780,947 670,477
Time deposits 1,571,129 1,504,343 1,143,691 1,494,748 1,116,876
------------------ ------------- -------------- ------------------- --------------
Total interest bearing deposits 3,953,272 4,038,692 3,072,488 3,942,384 3,108,457
------------------ ------------- -------------- ------------------- --------------
Total deposits 5,051,988 5,216,448 3,801,704 5,101,228 3,828,870
Other borrowed funds 304,686 210,388 335,758 267,666 304,192
Other liabilities 175,092 182,453 160,232 177,182 155,437
Common shareholders' equity 518,250 493,149 484,269 499,492 476,542
------------------ ------------- -------------- ------------------- --------------
Total liabilities & common equity $6,050,017 $6,102,438 $4,781,962 $6,045,569 $4,765,041
================== ============= ============== =================== ==============
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
--------------------------------------------- ----------------------------------
Three Months Ended Nine Months Ended
--------------------------------------------- ----------------------------------
9/30/2006 6/30/2006 9/30/2005 9/30/2006 9/30/2005
--------------- ----------- -------------- ------------ -----------------
Average Balance Sheet Mix
Percentage of earning assets/funding sources:
Loans 55.92% 53.41% 67.32% 54.58% 65.99%
Securities 42.37% 40.55% 31.46% 40.80% 32.21%
Short-term investments 1.71% 6.04% 1.22% 4.62% 1.79%
--------------- ----------- -------------- ------------ -----------------
Earning average assets 100.00% 100.00% 100.00% 100.00% 100.00%
=============== =========== ============== ============ =================
Non-interest bearing deposits 19.95% 21.01% 16.82% 20.98% 16.72%
Interest bearing transaction deposits 28.87% 30.27% 30.25% 30.17% 30.66%
Interest bearing Public Fund deposits 14.37% 14.94% 14.23% 14.14% 15.56%
Time deposits 28.52% 26.84% 26.38% 27.06% 25.92%
--------------- ----------- -------------- ------------ -----------------
Total 91.71% 93.06% 87.68% 92.33% 88.85%
deposits
Other borrowed funds 5.53% 3.75% 7.74% 4.84% 7.06%
Other net interest-free funding sources 2.76% 3.19% 4.58% 2.82% 4.09%
--------------- ----------- -------------- ------------ -----------------
Total average funding sources 100.00% 100.00% 100.00% 100.00% 100.00%
=============== =========== ============== ============ =================
Loan mix:
Commercial/real estate loans 57.11% 56.77% 54.28% 56.76% 53.91%
Mortgage loans 13.75% 13.71% 14.75% 13.75% 14.71%
Direct consumer loans 15.28% 15.50% 17.28% 15.53% 17.79%
Indirect consumer loans 11.28% 11.64% 11.49% 11.58% 11.40%
Finance Company loans 2.58% 2.39% 2.19% 2.38% 2.19%
--------------- ----------- -------------- ------------ -----------------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
=============== =========== ============== ============ =================
Average dollars (in thousands):
Loans $3,080,442 $2,994,191 $2,918,709 $3,015,434 $2,844,003
Securities 2,334,242 2,273,012 1,364,219 2,254,068 1,388,143
Short-term investments 94,026 338,443 52,933 255,265 77,300
--------------- ----------- -------------- ------------ -----------------
Earning average assets $5,508,709 $5,605,646 $4,335,861 $5,524,767 $4,309,446
Non-interest bearing deposits $1,098,716 $1,177,756 $729,216 $1,158,844 $720,413
Interest bearing transaction deposits 1,590,319 1,696,598 1,311,779 1,666,689 1,321,105
Interest bearing Public Fund deposits 791,825 837,751 617,017 780,947 670,477
Time deposits 1,571,129 1,504,343 1,143,691 1,494,748 1,116,876
--------------- ----------- -------------- ------------ -----------------
Total 5,051,988 5,216,448 3,801,704 5,101,228 3,828,870
deposits
Other borrowed funds 304,686 210,388 335,758 267,666 304,192
Other net interest-free funding sources 152,035 178,810 198,399 155,873 176,384
--------------- ----------- -------------- ------------ -----------------
Total average funding sources $5,508,709 $5,605,646 $4,335,861 $5,524,767 $4,309,446
Loans:
Commercial/real estate loans $1,759,173 $1,699,768 $1,584,244 $1,711,525 $1,533,208
Mortgage loans 423,610 410,522 430,615 414,768 418,479
Direct consumer loans 470,771 463,977 504,362 468,196 505,899
Indirect consumer loans 347,404 348,463 335,482 349,076 324,122
Finance Company loans 79,483 71,461 64,006 71,868 62,295
--------------- ----------- -------------- ------------ -----------------
Total average loans $3,080,442 $2,994,191 $2,918,709 $3,015,434 $2,844,003
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Three Months Ended
--------------------------------------------------------------------------------------------
09/30/06 06/30/06 09/30/05
-------------------------------- ---------------------------- ----------------------------
Interest Volume Rate Interest Volume Rate Interest Volume Rate
----------- ---------- -------- --------- ----------- ----- -------- ----------- --------
Average Earning Assets
Commercial & real estate loans (TE) $32,520 $1,759,173 7.34% $30,613 $1,699,768 7.22% $25,770 $1,584,244 6.46%
Mortgage loans 6,411 423,610 6.05% 5,980 410,522 5.83% 5,921 430,615 5.50%
Consumer loans 19,547 897,658 8.64% 18,356 883,901 8.33% 17,772 903,850 7.80%
Loan fees & late charges 2,710 - 0.00% 2,476 - 0.00% 2,183 - 0.00%
----------- ---------- -------- --------- ----------- ----- -------- ----------- --------
Total loans (TE) 61,188 3,080,442 7.89% 57,425 2,994,191 7.69% 51,646 2,918,709 7.03%
US treasury securities 855 67,966 4.99% 454 42,028 4.33% 62 11,296 2.17%
US agency securities 16,456 1,356,478 4.85% 15,954 1,346,963 4.74% 4,834 464,450 4.16%
CMOs 1,439 145,494 3.96% 1,626 164,825 3.95% 2,251 229,934 3.92%
Mortgage backed securities 6,231 511,372 4.87% 5,643 484,002 4.66% 4,773 436,733 4.37%
Municipals (TE) 2,935 174,744 6.72% 2,673 158,553 6.76% 2,792 160,502 6.96%
Other securities 1,042 78,188 5.33% 944 76,641 4.93% 733 61,304 4.78%
----------- ---------- -------- --------- ----------- ----- -------- ----------- --------
Total securities (TE) 28,958 2,334,242 4.96% 27,294 2,273,012 4.80% 15,444 1,364,219 4.53%
Total short-term investments 1,128 94,026 4.76% 3,656 338,443 4.33% 416 52,933 3.12%
Average earning assets yield (TE) $91,275 $5,508,709 6.60% $88,375 $5,605,646 6.32% $67,506 $4,335,861 6.19%
Interest-bearing Liabilities
Interest-bearing transaction deposits $3,955 $1,590,319 0.99% $3,780 $1,696,598 0.89% $2,317 $1,311,779 0.70%
Time deposits 16,353 1,571,129 4.13% 14,451 1,504,343 3.85% 10,222 1,143,691 3.55%
Public Funds 8,629 791,825 4.32% 8,658 837,751 4.15% 4,740 617,017 3.05%
----------- ---------- -------- --------- ----------- ----- -------- ----------- --------
Total interest bearing deposits 28,936 3,953,272 2.90% 26,888 4,038,692 2.67% 17,279 3,072,488 2.23%
Customer repos 2,785 271,582 4.07% 1,573 200,973 3.14% 1,467 248,505 2.34%
Other borrowings 267 33,104 3.20% 174 9,415 7.43% 913 87,253 4.15%
----------- ---------- -------- --------- ----------- ----- -------- ----------- --------
Total borrowings 3,052 304,686 3.97% 1,747 210,388 3.33% 2,380 335,758 2.81%
Total interest bearing liab cost $31,988 $4,257,959 2.98% $28,636 $4,249,079 2.70% $19,659 $3,408,246 2.29%
Noninterest-bearing deposits 1,098,716 1,177,756 729,216
Other net interest-free funding sources 152,035 178,810 198,399
Total Cost of Funds $31,988 $5,508,709 2.30% $28,636 $5,605,646 2.05% $19,659 $4,335,861 1.80%
Net Interest Spread (TE) $59,286 3.62% $59,740 3.61% $47,847 3.91%
Net Interest Margin (TE) $59,286 $5,508,709 4.29% $59,740 $5,605,646 4.27% $47,847 $4,335,861 4.40%
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Nine Months Ended
-----------------------------------------------------------------------------------
9/30/2006 9/30/2005
-------------------------------------- --------------------------------------------
Interest Volume Rate Interest Volume Rate
----------- ------------- --------- ----------- -------------- -------------
Average Earning Assets
Commercial & real estate loans (TE) $91,770 $1,711,525 7.17% $71,847 $1,533,208 6.26%
Mortgage loans 18,289 414,768 5.88% 17,504 418,479 5.58%
Consumer loans 55,376 889,140 8.33% 51,200 892,316 7.67%
Loan fees & late charges 7,506 - 0.00% 6,510 - 0.00%
----------- ------------- --------- ----------- -------------- -------------
Total loans (TE) 172,941 3,015,434 7.66% 147,061 2,844,003 6.91%
US treasury securities 1,936 56,722 4.56% 182 11,144 2.19%
US agency securities 46,196 1,299,845 4.74% 14,096 459,784 4.09%
CMOs 4,874 164,723 3.95% 7,546 253,121 3.97%
Mortgage backed securities 17,393 491,177 4.72% 14,490 439,270 4.40%
Municipals (TE) 8,344 165,533 6.72% 8,504 162,160 6.99%
Other securities 2,859 76,068 5.01% 2,189 62,664 4.66%
----------- ------------- --------- ----------- -------------- -------------
Total securities (TE) 81,602 2,254,068 4.83% 47,008 1,388,143 4.52%
Total short-term investments 8,684 255,265 4.55% 1,507 77,300 2.61%
Average earning assets yield (TE) $263,226 $5,524,767 6.36% $195,576 $4,309,446 6.06%
Interest-Bearing Liabilities
Interest-bearing transaction deposits $11,001 $1,666,689 0.88% $6,367 $1,321,105 0.64%
Time deposits 43,809 1,494,748 3.92% 29,151 1,116,876 3.49%
Public Funds 24,036 780,947 4.11% 12,900 670,477 2.57%
----------- ------------- --------- ----------- -------------- -------------
Total interest bearing deposits 78,845 3,942,384 2.67% 48,417 3,108,457 2.08%
Customer repos 5,999 234,576 3.42% 3,226 231,736 1.86%
Other borrowings 1,053 33,090 4.25% 2,265 72,455 4.18%
----------- ------------- --------- ----------- -------------- -------------
Total borrowings 7,051 267,666 3.52% 5,491 304,192 2.41%
Total interest bearing liab cost $85,897 $4,210,050 2.73% $53,908 $3,412,649 2.11%
Noninterest-bearing deposits 1,158,844 720,413
Other net interest-free funding sources 155,873 176,384
Total Cost of Funds $85,897 $5,524,767 2.08% $53,908 $4,309,446 1.67%
Net Interest Spread (TE) $177,329 3.64% $141,667 3.95%
Net Interest Margin (TE) $177,329 $5,524,767 4.28% $141,667 $4,309,446 4.39%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2004 2005 2006
-------- --------------------------------------- ---------------------------
3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
-------- -------- -------- -------- --------- -------- ------- -------
Per Common Share Data
Earnings per share:
Basic $0.49 $0.48 $0.56 $0.04 $0.59 $0.68 $0.68 $1.11
Diluted $0.48 $0.47 $0.55 $0.04 $0.58 $0.67 $0.66 $1.08
Cash dividends per share $0.165 $0.165 $0.165 $0.195 $0.195 $0.195 $0.220 $0.240
Book value per share (period-end) $14.32 $14.16 $14.87 $14.52 $14.78 $15.06 $15.12 $16.64
Tangible book value per share (period-end) $12.16 $11.99 $12.73 $12.25 $12.55 $12.85 $12.94 $14.47
Weighted average number of shares:
Basic 32,467 32,463 32,396 32,308 32,313 32,393 32,531 32,566
Diluted 33,076 33,019 32,928 32,940 32,980 33,088 33,322 33,333
Period-end number of shares 32,440 32,463 32,310 32,309 32,301 32,494 32,555 32,584
Market data:
High closing price $34.83 $34.20 $34.87 $37.84 $39.90 $46.67 $57.19 $56.79
Low closing price $30.00 $30.25 $28.25 $29.93 $31.08 $37.75 $44.02 $49.71
Period end closing price $33.46 $32.50 $34.40 $34.14 $37.81 $46.52 $56.00 $53.55
Trading volume 2,781 3,286 3,527 8,760 6,829 3,990 8,737 8,135
Other Period-end Data
FTE headcount 1,767 1,766 1,813 1,590 1,735 1,768 1,777 1,788
Tangible common equity $394,389 $389,344 $411,203 $395,843 $405,216 $417,684 $421,369 $471,387
Tier I capital $399,320 $408,163 $416,312 $407,075 $420,281 $440,302 $457,738 $487,668
Goodwill $55,409 $55,409 $55,409 $61,428 $61,418 $61,418 $59,060 $59,683
Amortizable intangibles $12,263 $12,510 $11,746 $9,928 $9,204 $8,725 $10,575 $9,938
Mortgage servicing intangibles $2,520 $2,288 $2,082 $1,860 $1,577 $1,384 $1,256 $1,093
Common shares repurchased for publicly
announced plans - 40 96 12 - 17 22 -
Performance Ratios
Return on average assets 1.39% 1.32% 1.52% 0.12% 1.39% 1.49% 1.45% 2.36%
Return on average common equity 13.54% 13.32% 15.27% 1.18% 15.98% 18.34% 17.89% 27.58%
Earning asset yield (TE) 6.00% 5.90% 6.08% 6.19% 6.14% 6.17% 6.32% 6.60%
Total cost of funds 1.47% 1.55% 1.66% 1.80% 1.70% 1.88% 2.05% 2.30%
Net interest margin (TE) 4.53% 4.35% 4.42% 4.40% 4.44% 4.30% 4.27% 4.29%
Non-interest expense as a percent
of total revenue (TE) before amortization
of purchased intangibles, net storm-related
gain/(loss), gain on sale of credit card
merchant and securities transactions 54.95% 59.99% 57.83% 60.85% 56.89% 58.30% 59.13% 58.76%
Common equity (period-end) as
a percent of total assets (period-end) 9.96% 9.64% 10.03% 9.55% 8.02% 7.82% 8.00% 8.86%
Leverage (Tier I) ratio 8.97% 8.75% 8.83% 8.64% 7.85% 7.45% 7.59% 8.15%
Tangible common equity ratio 8.58% 8.28% 8.71% 8.17% 6.89% 6.75% 6.92% 7.79%
Net charge-offs as a
percent of average loans 0.56% 0.33% 0.24% 0.23% 0.41% -0.01% 0.40% 0.34%
Allowance for loan losses as
a percent of period-end loans 1.48% 1.48% 1.45% 2.57% 2.49% 2.49% 2.33% 1.54%
Allowance for loan losses to
NPAs + loans 90 days past due 251.85% 323.66% 284.75% 392.70% 195.50% 432.85% 457.10% 494.65%
Loan/deposit ratio 75.19% 72.40% 73.63% 76.77% 66.44% 59.00% 57.40% 60.97%
Non-interest income excluding
net storm-related gain/(loss), gain on sale
of credit card merchant and
securities transactions as a percent
of total revenue (TE) 32.37% 32.77% 34.06% 31.10% 29.68% 29.92% 30.28% 30.18%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2004 2005 2006
-------- -------------------------------------------- ------------------------------
3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
-------- -------- -------- -------- --------- -------- ------- -------
Asset Quality Information
Non-accrual loans $7,480 $6,335 $8,052 $10,373 $10,617 $8,676 $7,237 $5,179
Foreclosed assets 3,513 3,591 2,567 2,973 1,898 1,779 1,606 970
----------- ---------------------------------------------- --------------------------------
Total non-performing assets $10,993 $9,926 $10,619 $13,346 $12,515 $10,455 $8,843 $6,149
Non-performing assets as a percent of
loans and foreclosed assets 0.40% 0.36% 0.37% 0.45% 0.42% 0.35% 0.29% 0.20%
Accruing loans 90 days past due $5,160 $2,798 $3,914 $6,156 $25,622 $6,632 $6,681 $3,626
Accruing loans 90 days past due as
a percent of loans 0.19% 0.10% 0.14% 0.21% 0.86% 0.22% 0.22% 0.12%
Non-performing assets + accruing loans
90 days past due to loans and
foreclosed assets 0.59% 0.46% 0.51% 0.65% 1.28% 0.57% 0.51% 0.31%
Net charge-offs $3,839 $2,260 $1,691 $1,704 $3,104 ($108) $3,001 $2,608
Net charge-offs as
a percent of average loans 0.56% 0.33% 0.24% 0.23% 0.41% -0.01% 0.40% 0.34%
Allowance for loan losses $40,682 $41,182 $41,382 $76,584 $74,558 $73,961 $70,960 $48,352
Allowance for loan losses as a
percent of period-end loans 1.48% 1.48% 1.45% 2.57% 2.49% 2.49% 2.33% 1.54%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 251.85% 323.66% 284.75% 392.70% 195.50% 432.85% 457.10% 494.65%
Provision for loan losses $5,796 $2,760 $1,891 $36,905 $1,079 ($705) - ($20,000)
Net Charge-off Information
Net charge-offs:
Commercial/real estate loans $1,003 $770 $202 ($17) $332 ($1,769) $620 $522
Mortgage loans 38 68 (5) 7 (7) 181 28 367
Direct consumer loans 1,173 501 491 861 1,831 579 1,681 1,003
Indirect consumer loans 910 540 538 342 272 653 391 294
Finance company loans 715 381 465 511 676 248 281 422
----------- ---------------------------------------------- --------------------------------
Total net charge-offs (including
storm-related) $3,839 $2,260 $1,691 $1,704 $3,104 ($108) $3,001 $2,608
Storm-related net charge-offs - - - - 2,350 597 1,133 284
----------- ---------------------------------------------- --------------------------------
Total net charge-offs (excluding
storm-related) $3,839 $2,260 $1,691 $1,704 $754 ($705) $1,868 $2,324
----------- ---------------------------------------------- --------------------------------
Average loans:
Commercial/real estate loans $1,439,074 $1,491,008 $1,523,348 $1,584,244 $1,660,804 $1,674,706 $1,699,768 $1,759,173
Mortgage loans 408,535 407,258 417,307 430,615 442,977 410,023 410,522 423,610
Direct consumer loans 498,336 503,700 509,628 504,362 489,150 469,832 463,977 470,771
Indirect consumer loans 307,413 313,542 323,100 335,482 342,203 351,405 348,463 347,404
Finance Company loans 60,604 60,720 62,124 64,006 63,663 64,496 71,461 79,483
----------- ---------------------------------------------- --------------------------------
Total average loans $2,713,963 $2,776,229 $2,835,506 $2,918,709 $2,998,797 $2,970,461 $2,994,191 $3,080,442
Net charge-offs to average loans:
Commercial/real estate loans 0.28% 0.21% 0.05% 0.00% 0.08% -0.43% 0.15% 0.12%
Mortgage loans 0.04% 0.07% 0.00% 0.01% -0.01% 0.18% 0.03% 0.34%
Direct consumer loans 0.94% 0.40% 0.39% 0.68% 1.49% 0.50% 1.45% 0.85%
Indirect consumer loans 1.18% 0.70% 0.67% 0.40% 0.32% 0.75% 0.45% 0.34%
Finance Company loans 4.69% 2.54% 3.00% 3.17% 4.21% 1.56% 1.58% 2.11%
----------- ---------------------------------------------- --------------------------------
Total net charge-offs to average loans
(excl storm-related) 0.56% 0.33% 0.24% 0.23% 0.41% -0.01% 0.40% 0.34%
----------- ---------------------------------------------- --------------------------------
Total net charge-offs to average loans
(incl storm-related) 0.56% 0.33% 0.24% 0.23% 0.10% -0.10% 0.25% 0.30%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2004 2005 2006
-------- --------------------------------------- ----------------------------
3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
-------- -------- -------- -------- --------- -------- ------- --------
Income Statement
Interest income $59,190 $60,531 $64,027 $65,644 $73,429 $81,590 $86,404 $89,233
Interest income (TE) 61,051 62,302 65,767 67,506 75,433 83,563 88,375 91,275
Interest expense 15,014 16,289 17,961 19,659 20,911 25,273 28,636 31,988
-------- ---------- --------- -------- ---------- --------- --------- ----------
Net interest income (TE) 46,037 46,013 47,807 47,847 54,522 58,290 59,740 59,286
Provision for loan losses 5,796 2,760 1,891 36,905 1,079 (705) - (20,000)
Non-interest income excluding net storm-related
gain/(loss) and securities transactions 22,037 22,427 24,695 21,600 23,016 24,890 25,942 25,627
Net storm-related gain/(loss) - - - 12,276 (5,692) - - -
Securities transactions gains/(losses) 4 7 (15) (18) (27) 118 - 110
Non-interest expense 37,945 41,642 42,505 42,770 44,626 49,165 51,172 50,336
-------- ---------- --------- -------- ---------- --------- --------- ----------
Income before income taxes 22,475 22,273 26,350 168 24,112 32,865 32,536 52,645
Income tax expense 6,684 6,836 8,256 (1,267) 5,047 10,854 10,539 16,614
-------- ---------- --------- -------- ---------- --------- --------- ----------
Net income $15,791 $15,438 $18,094 $1,435 $19,065 $22,011 $21,998 $36,031
======== ========== ========= ======== ========== ========= ========= ==========
Non-interest Income
and Operating Expense
Service charges on deposit accounts $11,062 $9,490 $10,459 $7,975 $6,850 $7,884 $9,223 $9,719
Trust fees 2,487 2,541 2,859 2,761 2,946 3,078 3,409 3,175
Debit card & merchant fees 1,172 1,030 1,074 1,055 1,717 1,709 1,863 1,744
Insurance fees 1,824 3,881 3,499 4,883 4,837 5,159 4,596 4,146
Investment & annuity fees 581 1,188 1,547 1,304 1,037 1,264 1,591 1,595
ATM fees 1,119 1,372 1,154 871 805 1,294 1,273 1,223
Secondary mortgage market operations 1,489 499 676 377 670 817 749 1,018
Other income 2,302 2,426 3,428 2,374 4,154 3,684 3,239 3,009
-------- ---------- --------- -------- ---------- --------- --------- ----------
Non-interest income excluding net storm-related
gain/(loss) and securities transactions $22,037 $22,427 $24,695 $21,600 $23,016 $24,890 $25,942 $25,627
Net storm-related gain/(loss) - - - 12,276 (5,692) - - -
Securities transactions gains/(losses) 4 7 (15) (18) (27) 118 - 110
-------- ---------- --------- -------- ---------- --------- --------- ----------
Total non-interest income including storm-related
gain/(loss) and securities transactions $22,041 $22,433 $24,680 $33,858 $17,298 $25,008 $25,942 $25,737
======== ========== ========= ======== ========== ========= ========= ==========
Personnel expense $21,706 $22,379 $22,925 $24,275 $24,580 $26,202 $26,400 $27,059
Occupancy expense (net) 2,627 2,495 2,576 2,617 3,237 3,659 3,474 2,882
Equipment expense 2,548 2,357 2,366 2,319 2,511 2,668 2,816 2,647
Other operating expense 10,526 13,828 14,059 13,044 13,780 15,961 17,976 17,304
Amortization of intangibles 538 584 578 514 518 675 507 445
-------- ---------- --------- -------- ---------- --------- --------- ----------
Total non-interest expense $37,945 $41,642 $42,505 $42,770 $44,626 $49,165 $51,172 $50,336
-------- ---------- --------- -------- ---------- --------- --------- ----------