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):
April 17, 2007
HANCOCK HOLDING COMPANY
-----------------------------------------------------------
(Exact name of registrant as specified in its charter)
Mississippi 0-13089 64-0169065
------------------------- -------------------- -----------------------------
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification Number)
incorporation)
One Hancock Plaza, 2510 14th Street,
Gulfport, Mississippi 39501
------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
(228) 868-4000
------------------------------------------------------------------
(Registrant's telephone number, including area code)
INFORMATION TO BE INCLUDED IN THE REPORT
Item 8.01. Other Events. On April 17, 2007, Hancock Holding Company
issued a press release announcing earnings for first quarter of 2007.
The press release and related financial statements are attached hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits.
99.1 Press Release issued by Hancock Holding Company
dated April 17, 2007, headed "Hancock Holding
Company Announces Earnings for First Quarter
2007" 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: April 18, 2007
HANCOCK HOLDING COMPANY
(Registrant)
By: /s/ Paul D. Guichet
--------------------------------
Paul D. Guichet
Vice President
Investor Relations
Exhibit 99.1 to Hancock Holding Company Form 8-K
For Immediate Release For More Information
April 17, 2007 Carl J. Chaney, Chief Executive Officer
John M. Hairston, Chief Executive Officer
Michael M. Achary, Chief Financial Officer
Paul D. Guichet, Investor Relations
800.522.6542 or 228.563.6559
=====================================================================================================================
Hancock Holding Company Announces Earnings for First Quarter 2007
GULFPORT, MS (April 17, 2007) - Hancock Holding Company (NASDAQ: HBHC) announced earnings for the first
quarter ended March 31, 2007. Hancock's first quarter 2007 earnings were $19.2 million, a decrease of $2.8
million, or 13 percent, from the first quarter of 2006. Diluted earnings per share for the first quarter of 2007
were $0.58, a decrease of $0.09 from the same quarter a year ago.
For comparative purposes, net income for 2006 was affected by several items related to the impact of Hurricane
Katrina, which made landfall in the Company's operating region on August 29, 2005. In the third quarter of 2006,
the Company reversed $20.0 million from the storm-related allowance for loan losses due to better than expected
loss experience with storm-impacted credits. In addition, the Company negotiated a final settlement with the
primary property and casualty insurance provider and recognized a $5.1 million gain in 2006's fourth quarter.
There were no significant storm-related items in the first and second quarters of 2006.
Recovery Update
Hancock Holding Company Chief Executive Officers Carl J. Chaney and John M. Hairston both expressed gratitude
to all Hancock family members for the completion of recovery efforts from the aftermath of the 2005 storm. By
April 30, 2007, the Company will complete the task of moving back into the newly restored corporate headquarters
building at One Hancock Plaza. In addition, work is progressing on the Company's new Data Center, located on high
ground north of Interstate 10, with an expected completion date of June 1, 2007. Hancock has also completed the
necessary and prudent steps of ensuring continuity of our customer and business-related operations in the event of
any potential disruptions.
First Quarter 2007 Financial Highlights
o Net Income and Returns: Hancock's net income for the first quarter of 2007 was $19.2 million compared to
$22.0 million for the same quarter a year ago. Return on average assets for the quarter was 1.32 percent
compared to 1.49 percent for 2006's first quarter. Return on average common equity was 13.77 percent
compared to 18.34 percent for the same quarter a year ago.
o Asset Quality & Allowance for Loan Losses: Hancock recorded a provision for loan losses of $1.2 million
in the first quarter, which when combined with the quarter's net charge-offs of $1.47 million, resulted in
a $.3 million reduction in the allowance for loan losses between December 31, 2006 and March 31, 2007.
This provision was necessary to further adjust the allowance to the level dictated by the Company's
reserving methodologies. Net charge-offs for the first quarter of 2007 were $1.47 million, or 0.18
percent of average loans, down $58 thousand from the $1.52 million, or 0.19 percent of average loans,
reported for the fourth quarter of 2006. Net charge-offs for the first quarter of 2006 were a negative
$.11 million or negative 0.01 percent of average loans. Non-performing assets as a percent of total loans
and foreclosed assets was 0.16 percent at March 31, 2007, compared to 0.13 percent at December 31, 2006.
Compared to the first quarter of 2006, the ratio of non-performing assets as a percent of total loans and
foreclosed assets was down 19 basis points from the 0.35 percent reported at March 31, 2006.
Non-performing assets increased $1.0 million from December 31, 2006, reflecting higher levels of
non-accrual loans. The Company's ratio of accruing loans 90 days or more past due to total loans was 0.18
percent at March 31, 2007, compared to 0.08 percent at December 31, 2006 and to 0.22 percent at March 31,
2006. The Company's allowance for loan losses was $46.5 million at March 31, 2007, down $.3 million from
the $46.8 million reported at December 31, 2006, and $27.4 million lower than the $73.9 million reported
at March 31, 2006. The ratio of the allowance for loan losses as a percent of period-end loans was 1.41
percent at March 31, 2007, and 1.44 percent at December 31, 2006. The allowance coverage ratio (allowance
for loan losses to non-performers and past dues) was 414 percent for the first quarter of 2007, as
compared to 433 percent for the first quarter of 2006.
o Loans: At March 31, 2007, Hancock's total loans were $3.3 billion, which represented an increase of
$347.7 million, or 12 percent, from March 31, 2006. Period-end loans were up $49.0 million, or 2 percent,
compared to December 31, 2006. Average loans were up $91.5 million, or 12 percent annualized, from the
fourth quarter of 2006. Of that increase, approximately $50 million of growth was in Mississippi, $31
million in Louisiana, $9 million in Florida and $2 million in Alabama. The majority of the increase in
average loans compared to last quarter was in commercial purpose loans (approximately $76.5 million).
o Deposits: Period-end deposits for the first quarter were $4.9 billion, down $395.2 million, or 7 percent,
from March 31, 2006, and were down $107.2 million, or 2 percent, from December 31, 2006. Average deposits
were up $20.2 million, or 2 percent annualized, from the fourth quarter of 2006. The majority of the
increase in average deposits was in public fund deposits (up significantly due to seasonal inflows of
$78.6 million) and time deposits (up $.8 million). Offsetting these increases was a decrease in
transaction deposits ($59.2 million). The slower growth in deposits compared to the prior quarter and
same quarter a year ago was the result of the continued rebuilding efforts in the region following
Hurricane Katrina and the slower than expected pace of Federal grants to homeowners.
o Net Interest Income: Net interest income (te) for the first quarter decreased $4.5 million, or 8 percent,
from the first quarter of 2006, and was $1.6 million, or 3 percent, lower than the fourth quarter of
2006. The Company's net interest margin (te) was 4.04 percent in the first quarter, 26 basis points
narrower than the same quarter a year ago and 2 basis points narrower than the previous quarter.
Compared to the same quarter a year ago, the primary driver of the $4.5 million decrease in net interest
income (te) was a $104.7 million, or 2 percent, decrease in average earning assets mainly from a reduction
in total borrowings of $82.0 million, or 29 percent, and a decrease in average deposits of $39.8 million,
or .8 percent. As mentioned, the net interest margin (te) narrowed 26 basis points as the decrease in the
average earning asset yield (46 basis points) did not offset the increase in total funding costs (72 basis
points). The Company's level of net interest income (te) in the first quarter decreased $1.6 million from
the prior quarter. The net interest margin (te) narrowed 2 basis points from the prior quarter as the
yield on average earning assets increased 10 basis points, while total funding costs were up 12 basis
points.
o Noninterest Income & Operating Expense: Noninterest income for the first quarter was up $1.0 million, or
4 percent, compared to the same quarter a year ago, but was down $1.6 million, or 6 percent, compared to
the fourth quarter. The primary factors impacting the higher levels of noninterest income as compared to
the same quarter a year ago, were higher levels of service charge fees (up $1.3 million, or 17 percent)
and trust fees (up $0.6 million, or 20 percent). The decrease in noninterest income for the first quarter
(excluding securities transactions) compared to the prior quarter was due to decreases in insurance fees
(down $1.0 million) and other income (down $0.8 million). Operating expenses for the first quarter were
$.2 million, or .4 percent, higher compared to the same quarter a year ago and were $0.7 million, or 1
percent, lower than the previous quarter. The increase from the same quarter a year ago was reflected in
higher levels of personnel expense (up $.4 million) and occupancy expense (up $.4 million).
Branch Expansion
During the first quarter of 2007, the Company received final regulatory approval for a commercial banking
charter in the state of Alabama. Hancock Bank of Alabama began operations in February, 2007 with one location in
our existing loan production office in Mobile, AL. A total of four branch locations will be open and operating in
either leased or modular facilities while permanent branch facilities are constructed. These facilities will open
over the course of the next 90 days. An additional branch facility is planned for downtown New Orleans, LA (August
2007), and as many as three additional branch facilities in Pensacola, FL (first quarter, 2008).
Stock Repurchases
Approximately 228,000 of the Company's shares were repurchased during the first quarter of 2007 under the
Stock Repurchase Plan that was approved in 2000. The remaining plan shares available for repurchase at March 31,
2007 were 1.3 million shares. Management intends to continue repurchasing shares as long as market conditions are
conducive to that action.
About Hancock Holding Company and Hancock Bank
Hancock Holding Company -- parent company of Hancock Bank of Alabama, Hancock Bank Mississippi, Hancock Bank
of Florida, and Hancock Bank of Louisiana -- has assets of more than $5.8 billion. Bank subsidiaries include
Hancock Investment Services, Inc., Hancock Insurance Agency, and Harrison Finance Company. Additionally, the
company operates corporate trust offices in Gulfport, MS, Jackson, MS, New Orleans, LA, and Baton Rouge, LA.
Hancock's trust department, a division of the wealth management group, has assets of $7.1 billion, with assets
under management of $2.3 billion, as of December 31, 2006. Founded October 10, 1899, Hancock Bank 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 consistently ranks as one of the country's strongest, safest financial institutions,
according to Veribanc, Inc., and BauerFinancial Services, Inc. Thomson Financial also recently listed Hancock as
the ninth largest corporate trustee bank in the U.S. More corporate information and online banking 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.
- more -
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Three Months Ended
----------------------------------
3/31/2007 12/31/2006 3/31/2006
---------- ---------- ---------
Per Common Share Data
Earnings per share:
Basic $0.59 $0.67 $0.68
Diluted $0.58 $0.65 $0.67
Cash dividends per share $0.240 $0.240 $0.195
Book value per share (period-end) $17.27 $17.09 $15.06
Tangible book value per share (period-end) $15.05 $14.87 $12.85
Weighted average number of shares:
Basic 32,665 32,632 32,393
Diluted 33,299 33,378 33,088
Period-end number of shares 32,518 32,666 32,494
Market data:
High price $54.09 $56.00 $46.67
Low price $41.88 $50.85 $37.75
Period end closing price $43.98 $52.84 $46.52
Trading volume 8,577 6,393 3,990
Other Period-end Data
FTE headcount 1,929 1,848 1,768
Tangible common equity $489,430 $485,778 $417,684
Tier I capital $513,229 $510,638 $440,302
Goodwill $62,277 $62,277 $61,418
Amortizable intangibles $8,991 $9,414 $8,725
Mortgage servicing intangibles $829 $941 $1,384
Common shares repurchased for publicly announced plans 228 - 17
Performance Ratios
Return on average assets 1.32% 1.44% 1.49%
Return on average common equity 13.77% 15.54% 18.34%
Earning asset yield (TE) 6.64% 6.54% 6.17%
Total cost of funds 2.60% 2.48% 1.88%
Net interest margin (TE) 4.04% 4.06% 4.30%
Noninterest expense as a percent of total revenue (TE)
before amortization of purchased intangibles, net storm-related
gain/(loss) and securities transactions 61.38% 59.79% 58.29%
Common equity (period-end) as a percent of total assets (period-end) 9.61% 9.36% 7.82%
Leverage (Tier I) ratio 8.80% 8.63% 7.45%
Tangible common equity ratio 8.48% 8.24% 6.75%
Net charge-offs as a percent of average loans 0.18% 0.19% -0.01%
Allowance for loan losses as a percent of period-end loans 1.41% 1.44% 2.51%
Allowance for loan losses to NPAs + accruing loans 90 days past due 413.60% 694.67% 432.85%
Loan/deposit ratio 65.91% 64.34% 59.00%
Non-interest income excluding net storm-related gain/(loss)
and securities transactions as a percent of
total revenue (TE) 32.48% 33.14% 29.92%
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
Three Months Ended
----------------------------------
3/31/2007 12/31/2006 3/31/2006
---------- ---------- ----------
Asset Quality Information
Non-accrual loans $4,494 $3,500 $8,676
Foreclosed assets 718 681 1,779
---------- ---------- ----------
Total non-performing assets $5,212 $4,181 $10,455
---------- ---------- ----------
Non-performing assets as a percent of loans and foreclosed assets 0.16% 0.13% 0.35%
Accruing loans 90 days past due $6,035 $2,552 $6,632
Accruing loans 90 days past due as a percent of loans 0.18% 0.08% 0.22%
Non-performing assets + accruing loans 90 days past due
to loans and foreclosed assets 0.34% 0.21% 0.58%
Net charge-offs $1,465 $1,523 ($108)
Net charge-offs as a percent of average loans 0.18% 0.19% -0.01%
Allowance for loan losses $46,517 $46,772 $73,961
Allowance for loan losses as a percent of period-end loans 1.41% 1.44% 2.51%
Allowance for loan losses to NPAs + accruing loans 90 days past due 413.60% 694.67% 432.85%
Provision for loan losses $1,211 ($57) ($705)
Allowance for Loan Losses
Beginning Balance $46,772 $48,352 $74,558
Provision for loan loss 1,211 (57) (705)
Charge-offs 3,076 4,493 3,922
Recoveries 1,611 2,970 4,030
---------- ---------- ----------
Net charge-offs 1,465 1,523 (108)
---------- ---------- ----------
Ending Balance $46,517 $46,772 $73,961
---------- ---------- ----------
Net Charge-off Information
Net charge-offs:
Commercial/real estate loans $168 ($137) ($1,769)
Mortgage loans 23 (11) 181
Direct consumer loans 110 493 579
Indirect consumer loans 675 395 653
Finance company loans 489 783 248
---------- ---------- ----------
Total net charge-offs $1,465 $1,523 ($108)
========== ========== ==========
Average loans:
Commercial/real estate loans $1,931,966 $1,855,506 $1,674,706
Mortgage loans 426,103 428,674 410,023
Direct consumer loans 485,201 479,087 469,832
Indirect consumer loans 357,008 350,829 351,405
Finance Company loans 92,315 86,965 64,496
---------- ---------- ----------
Total average loans $3,292,593 $3,201,061 $2,970,461
Net charge-offs to average loans:
Commercial/real estate loans 0.04% -0.03% -0.43%
Mortgage loans 0.02% -0.01% 0.18%
Direct consumer loans 0.09% 0.41% 0.50%
Indirect consumer loans 0.77% 0.45% 0.75%
Finance Company loans 2.15% 3.57% 1.56%
---------- ---------- ----------
Total net charge-offs to average loans 0.18% 0.19% -0.01%
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
Three Months Ended
-----------------------------------
3/31/2007 12/31/2006 3/31/2006
---------- ---------- -----------
Income Statement
Interest income $85,708 $87,104 $81,590
Interest income (TE) 88,124 89,366 83,570
Interest expense 34,308 33,966 25,273
---------- ---------- -----------
Net interest income (TE) 53,816 55,400 58,297
Provision for loan losses 1,211 (57) (705)
Noninterest income excluding net storm-related gain/(loss)
and securities transactions 25,889 27,460 24,890
Net storm-related gain/(loss) - 5,084 -
Securities transactions gains/(losses) 213 (5,396) 118
Noninterest expense 49,346 50,042 49,165
---------- ---------- -----------
Income before income taxes 26,945 30,300 32,865
Income tax expense 7,715 8,538 10,854
---------- ---------- -----------
Net income $19,229 $21,762 $22,011
========== ========== ===========
Noninterest Income and Noninterest Expense
Service charges on deposit accounts $9,190 $9,402 $7,884
Trust fees 3,693 3,624 3,078
Debit card & merchant fees 1,778 1,983 1,709
Insurance fees 4,369 5,346 5,159
Investment & annuity fees 1,978 1,519 1,264
ATM fees 1,324 1,215 1,294
Secondary mortgage market operations 911 945 817
Other income 2,646 3,426 3,684
---------- ---------- -----------
Noninterest income excluding net storm-related gain/(loss)
and securities transactions $25,889 $27,460 $24,890
Net storm-related gain/(loss) - 5,084 -
Securities transactions gains/(losses) 213 (5,396) 118
---------- ---------- -----------
Total noninterest income including net storm-related gain/(loss)
and securities transactions $26,101 $27,147 $25,008
========== ========== ===========
Personnel expense $26,563 $24,092 $26,202
Occupancy expense (net) 4,073 3,335 3,659
Equipment expense 2,272 2,665 2,668
Other operating expense 16,015 19,451 15,961
Amortization of intangibles 423 499 675
---------- ---------- -----------
Total noninterest expense $49,346 $50,042 $49,165
========== ========== ===========
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
Three Months Ended
------------------------------------
3/31/2007 12/31/2006 3/31/2006
------------ ---------- ----------
Period-end Balance Sheet
Commercial/real estate loans $1,953,907 $1,912,076 $1,688,820
Mortgage loans 420,781 415,180 398,201
Direct consumer loans 469,783 479,113 447,214
Indirect consumer loans 358,844 353,032 349,412
Finance Company loans 95,334 90,236 67,300
------------ ---------- ----------
Total loans 3,298,647 3,249,637 2,950,947
Loans held for sale 21,342 16,946 20,223
Securities 1,820,772 1,903,658 2,278,613
Short-term investments 134,924 222,439 417,373
------------ ---------- ----------
Earning assets 5,275,685 5,392,680 5,667,157
------------ ---------- ----------
Allowance for loan losses (46,517) (46,772) (73,961)
Other assets 615,865 618,656 663,393
------------ ---------- ----------
Total assets $5,845,033 $5,964,565 $6,256,589
============ ========== ==========
Noninterest bearing deposits $995,864 $1,057,358 $1,225,744
Interest bearing transaction deposits 1,515,116 1,485,156 1,730,873
Interest bearing Public Fund deposits 777,692 733,788 892,894
Time deposits 1,635,090 1,754,690 1,469,438
------------ ---------- ----------
Total interest bearing deposits 3,927,899 3,973,633 4,093,205
------------ ---------- ----------
Total deposits 4,923,763 5,030,991 5,318,949
Other borrowed funds 222,534 227,027 273,629
Other liabilities 137,209 148,137 174,568
Common shareholders' equity 561,527 558,410 489,443
------------ ---------- ----------
Total liabilities & common equity $5,845,033 $5,964,565 $6,256,589
============ ========== ==========
Average Balance Sheet
Commercial/real estate loans $1,931,966 $1,855,506 $1,674,706
Mortgage loans 426,103 428,674 410,023
Direct consumer loans 485,201 479,087 469,832
Indirect consumer loans 357,008 350,829 351,405
Finance Company loans 92,315 86,965 64,496
------------ ---------- ----------
Total loans 3,292,593 3,201,061 2,970,461
Securities 1,830,557 2,153,908 2,152,958
Short-term investments 231,558 81,675 335,986
------------ ---------- ----------
Earning average assets 5,354,709 5,436,644 5,459,405
------------ ---------- ----------
Allowance for loan losses (46,704) (47,804) (74,429)
Other assets 597,921 602,104 598,546
------------ ---------- ----------
Total assets $5,905,925 $5,990,944 $5,983,521
============ ========== ==========
Noninterest bearing deposits $983,973 $1,039,846 $1,201,186
Interest bearing transaction deposits 1,492,405 1,495,724 1,714,514
Interest bearing Public Fund deposits 820,652 742,063 712,394
Time deposits 1,698,218 1,697,427 1,406,969
------------ ---------- ----------
Total interest bearing deposits 4,011,274 3,935,214 3,833,877
------------ ---------- ----------
Total deposits 4,995,247 4,975,060 5,035,063
Other borrowed funds 205,737 321,292 287,738
Other liabilities 138,776 138,905 173,989
Common shareholders' equity 566,166 555,687 486,731
------------ ---------- ----------
Total liabilities & common equity $5,905,925 $5,990,944 $5,983,521
============ ========== ==========
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
Three Months Ended
-----------------------------------
3/31/2007 12/31/2006 3/31/2006
----------- ---------- ----------
Average Balance Sheet Mix
Percentage of earning assets/funding sources:
Loans 61.49% 58.88% 54.41%
Securities 34.19% 39.62% 39.44%
Short-term investments 4.32% 1.50% 6.15%
----------- ---------- ----------
Earning average assets 100.00% 100.00% 100.00%
=========== ========== ==========
Noninterest bearing deposits 18.38% 19.13% 22.00%
Interest bearing transaction deposits 27.87% 27.51% 31.40%
Interest bearing Public Fund deposits 15.33% 13.65% 13.05%
Time deposits 31.71% 31.22% 25.77%
----------- ---------- ----------
Total deposits 93.29% 91.51% 92.23%
Other borrowed funds 3.84% 5.91% 5.27%
Other net interest-free funding sources 2.87% 2.58% 2.50%
----------- ---------- ----------
Total average funding sources 100.00% 100.00% 100.00%
=========== ========== ==========
Loan mix:
Commercial/real estate loans 58.68% 57.97% 56.38%
Mortgage loans 12.94% 13.39% 13.80%
Direct consumer loans 14.74% 14.97% 15.82%
Indirect consumer loans 10.84% 10.96% 11.83%
Finance Company loans 2.80% 2.72% 2.17%
----------- ---------- ----------
Total loans 100.00% 100.00% 100.00%
=========== ========== ==========
Average dollars (in thousands):
Loans $3,292,593 $3,201,061 $2,970,461
Securities 1,830,557 2,153,908 2,152,958
Short-term investments 231,558 81,675 335,986
----------- ---------- ----------
Earning average assets $5,354,709 $5,436,644 $5,459,405
Noninterest bearing deposits $983,973 $1,039,846 $1,201,186
Interest bearing transaction deposits 1,492,405 1,495,724 1,714,514
Interest bearing Public Fund deposits 820,652 742,063 712,394
Time deposits 1,698,218 1,697,427 1,406,969
----------- ---------- ----------
Total deposits 4,995,247 4,975,060 5,035,063
Other borrowed funds 205,737 321,292 287,738
Other net interest-free funding sources 153,725 140,292 136,604
----------- ---------- ----------
Total average funding sources $5,354,709 $5,436,644 $5,459,405
Loans:
Commercial/real estate loans $1,931,966 $1,855,506 $1,674,706
Mortgage loans 426,103 428,674 410,023
Direct consumer loans 485,201 479,087 469,832
Indirect consumer loans 357,008 350,829 351,405
Finance Company loans 92,315 86,965 64,496
----------- ---------- ----------
Total average loans $3,292,593 $3,201,061 $2,970,461
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Three Months Ended
----------------------------------------------------------------------------------------------------
03/31/07 12/31/06 03/31/06
--------------------------------- -------------------------------- -------------------------------
Interest Volume Rate Interest Volume Rate Interest Volume Rate
----------- ---------- ------ --------- ---------- ------- --------- ---------- ------
Average Earning Assets
Commercial & real estate
loans (TE) $35,231 $1,931,966 7.39% $34,210 $1,855,506 7.32% $28,637 $1,674,706 6.93%
Mortgage loans 6,509 426,103 6.11% 6,516 428,674 6.08% 5,897 410,023 5.75%
Consumer loans 20,197 934,524 8.76% 19,890 916,881 8.61% 17,473 885,732 8.00%
Loan fees & late charges 443 - 0.00% 1,510 - 0.00% 2,320 - 0.00%
----------- ---------- ------ --------- ---------- ------- --------- ---------- ------
Total loans (TE) 62,380 3,292,593 7.67% 62,126 3,201,061 7.71% 54,327 2,970,461 7.40%
US treasury securities 736 60,480 4.94% 1,081 84,281 5.09% 627 60,086 4.23%
US agency securities 11,755 940,516 5.00% 14,505 1,181,943 4.91% 13,786 1,194,312 4.62%
CMOs 1,104 107,986 4.09% 1,268 124,850 4.06% 1,810 184,276 3.93%
Mortgage backed securities 5,482 444,427 4.93% 5,920 490,990 4.82% 5,519 477,789 4.62%
Municipals (TE) 2,861 198,815 5.76% 2,422 190,739 5.08% 2,729 163,175 6.69%
Other securities 922 78,333 4.71% 968 81,105 4.77% 872 73,320 4.76%
----------- ---------- ------ --------- ---------- ------- --------- ---------- ------
Total securities (TE) 22,861 1,830,557 5.00% 26,165 2,153,908 4.86% 25,342 2,152,958 4.71%
Total short-term investments 2,883 231,558 5.05% 1,075 81,675 5.22% 3,900 335,986 4.71%
Average earning assets
yield (TE) $88,124 $5,354,709 6.64% $89,366 $5,436,644 6.54% $83,570 $5,459,405 6.17%
Interest-bearing Liabilities
Interest-bearing transaction
deposits $4,765 $1,492,405 1.29% $3,930 $1,495,724 1.04% $3,266 $1,714,514 0.77%
Time deposits 19,022 1,698,218 4.54% 18,999 1,697,427 4.44% 13,005 1,406,969 3.75%
Public Funds 9,029 820,652 4.46% 8,318 742,063 4.45% 6,750 712,394 3.84%
----------- ---------- ------ --------- ---------- ------- --------- ---------- ------
Total interest bearing
deposits 32,816 4,011,274 3.32% 31,247 3,935,214 3.15% 23,021 3,833,877 2.44%
Customer repos 1,830 198,898 3.73% 3,061 298,163 4.07% 1,641 230,725 2.88%
Other borrowings (338) 6,838 -20.03% (342) 23,129 -5.87% 611 57,014 4.35%
----------- ---------- ------ --------- ---------- ------- --------- ---------- ------
Total borrowings 1,492 205,737 2.94% 2,719 321,292 3.36% 2,252 287,738 3.17%
Total interest bearing liab
cost $34,308 $4,217,011 3.30% $33,966 $4,256,506 3.17% $25,273 $4,121,615 2.49%
Noninterest-bearing deposits 983,973 1,039,846 1,201,186
Other net interest-free
funding sources 153,725 140,292 136,604
Total Cost of Funds $34,308 $5,354,709 2.60% $33,966 $5,436,644 2.48% $25,273 $5,459,405 1.88%
Net Interest Spread (TE) $53,816 3.34% $55,400 3.38% $58,297 3.69%
Net Interest Margin (TE) $53,816 $5,354,709 4.04% $55,400 $5,436,644 4.06% $58,297 $5,459,405 4.30%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2005 2006 2007
-------------------------------- ------------------------------------------ --------
2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
----------- --------- -------- --------- --------- ---------- -------- --------
Per Common Share Data
Earnings per share:
Basic $0.56 $0.04 $0.59 $0.68 $0.68 $1.11 $0.67 $0.59
Diluted $0.55 $0.04 $0.58 $0.67 $0.66 $1.08 $0.65 $0.58
Cash dividends per share $0.165 $0.195 $0.195 $0.195 $0.220 $0.240 $0.240 $0.240
Book value per share (period-end) $14.87 $14.52 $14.78 $15.06 $15.12 $16.64 $17.09 $17.27
Tangible book value per share (period-end) $12.73 $12.25 $12.55 $12.85 $12.94 $14.47 $14.87 $15.05
Weighted average number of shares:
Basic 32,396 32,308 32,313 32,393 32,531 32,566 32,632 32,665
Diluted 32,928 32,940 32,980 33,088 33,322 33,333 33,378 33,299
Period-end number of shares 32,310 32,309 32,301 32,494 32,555 32,584 32,666 32,518
Market data:
High price $34.87 $37.84 $39.90 $46.67 $57.19 $56.79 $56.00 $54.09
Low price $28.25 $29.93 $31.08 $37.75 $44.02 $49.71 $50.85 $41.88
Period end closing price $34.40 $34.14 $37.81 $46.52 $56.00 $53.55 $52.84 $43.98
Trading volume 3,527 8,760 6,829 3,990 8,737 8,135 6,393 8,577
Other Period-end Data
FTE headcount 1,813 1,590 1,735 1,768 1,777 1,788 1,848 1,929
Tangible common equity $411,203 $395,843 $405,216 $417,684 $421,369 $471,387 $485,778 $489,430
Tier I capital $416,312 $407,075 $420,281 $440,302 $457,738 $487,668 $510,638 $513,229
Goodwill $55,409 $61,428 $61,418 $61,418 $59,060 $59,683 $62,277 $62,277
Amortizable intangibles $11,746 $9,928 $9,204 $8,725 $10,575 $9,938 $9,414 $8,991
Mortgage servicing intangibles $2,082 $1,860 $1,577 $1,384 $1,256 $1,093 $941 $829
Common shares repurchased for publicly
announced plans 96 12 - 17 22 - - 228
Performance Ratios
Return on average assets 1.52% 0.12% 1.39% 1.49% 1.45% 2.36% 1.44% 1.32%
Return on average common equity 15.27% 1.18% 15.98% 18.34% 17.89% 27.58% 15.54% 13.77%
Earning asset yield (TE) 6.08% 6.19% 6.14% 6.17% 6.32% 6.60% 6.54% 6.64%
Total cost of funds 1.66% 1.80% 1.70% 1.88% 2.05% 2.30% 2.48% 2.60%
Net interest margin (TE) 4.42% 4.40% 4.44% 4.30% 4.27% 4.29% 4.06% 4.04%
Noninterest 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 57.83% 60.85% 56.89% 58.30% 59.13% 58.76% 59.79% 61.38%
Common equity (period-end) as
a percent of total assets (period-end) 10.03% 9.55% 8.02% 7.82% 8.00% 8.86% 9.36% 9.61%
Leverage (Tier I) ratio 8.83% 8.64% 7.85% 7.45% 7.59% 8.15% 8.63% 8.80%
Tangible common equity ratio 8.71% 8.17% 6.89% 6.75% 6.92% 7.79% 8.24% 8.48%
Net charge-offs as a
percent of average loans 0.24% 0.23% 0.41% -0.01% 0.40% 0.34% 0.19% 0.18%
Allowance for loan losses as
a percent of period-end loans 1.45% 2.59% 2.51% 2.51% 2.35% 1.55% 1.44% 1.41%
Allowance for loan losses to
NPAs + loans 90 days past due 284.75% 392.70% 195.50% 432.85% 457.10% 494.65% 694.67% 413.60%
Loan/deposit ratio 73.63% 76.77% 66.44% 59.00% 57.40% 60.97% 64.34% 65.91%
Noninterest income excluding
net storm-related gain/(loss), gain on
sale of credit card merchant and
securities transactions as a percent
of total revenue (TE) 34.06% 31.10% 29.68% 29.92% 30.28% 30.18% 33.14% 32.48%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2005 2006 2007
-------------------------------- --------------------------------------------- -----------
2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
---------- ---------- ---------- ----------- ---------- ---------- ---------- ----------
Asset Quality Information
Non-accrual loans $8,052 $10,373 $10,617 $8,676 $7,237 $5,179 $3,500 $4,494
Foreclosed assets 2,567 2,973 1,898 1,779 1,606 970 681 718
---------- ---------- ---------- ----------- ---------- ---------- ---------- ----------
Total non-performing assets $10,619 $13,346 $12,515 $10,455 $8,843 $6,149 $4,181 $5,212
Non-performing assets as a percent of
loans and foreclosed assets 0.37% 0.45% 0.42% 0.35% 0.29% 0.20% 0.13% 0.16%
Accruing loans 90 days past due $3,914 $6,156 $25,622 $6,632 $6,681 $3,626 $2,552 $6,035
Accruing loans 90 days past due as
a percent of loans 0.14% 0.21% 0.86% 0.22% 0.22% 0.12% 0.08% 0.18%
Non-performing assets + accruing loans
90 days past due to loans and
foreclosed assets 0.51% 0.65% 1.28% 0.57% 0.51% 0.31% 0.21% 0.34%
Net charge-offs $1,691 $1,704 $3,104 ($108) $3,001 $2,608 $1,523 $1,465
Net charge-offs as
a percent of average loans 0.24% 0.23% 0.41% -0.01% 0.40% 0.34% 0.19% 0.18%
Allowance for loan losses $41,382 $76,584 $74,558 $73,961 $70,960 $48,352 $46,772 $46,517
Allowance for loan losses as a
percent of period-end loans 1.45% 2.59% 2.51% 2.51% 2.35% 1.55% 1.44% 1.41%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 284.75% 392.70% 195.50% 432.85% 457.10% 494.65% 694.67% 413.60%
Provision for (recovery of) loan losses $1,891 $36,905 $1,079 ($705) - ($20,000) ($57) $1,211
Net Charge-off Information
Net charge-offs:
Commercial/real estate loans $202 ($17 ) $332 ($1,769) $620 $522 ($137) $168
Mortgage loans (5) 7 (7) 181 28 367 (11) 23
Direct consumer loans 491 861 1,831 579 1,681 1,003 493 110
Indirect consumer loans 538 342 272 653 391 294 395 675
Finance company loans 465 511 676 248 281 422 783 489
---------- ---------- ---------- ----------- ---------- ---------- ---------- ----------
Total net charge-offs $1,691 $1,704 $3,104 ($108) $3,001 $2,608 $1,523 $1,465
---------- ---------- ---------- ----------- ---------- ---------- ---------- ----------
Average loans:
Commercial/real estate loans $1,523,348 $1,584,244 $1,660,804 $$1,674,706 $1,699,768 $1,759,173 $1,855,506 $1,931,966
Mortgage loans 417,307 430,615 442,977 410,023 410,522 423,610 428,674 426,103
Direct consumer loans 509,628 504,362 489,150 469,832 463,977 470,771 479,087 485,201
Indirect consumer loans 323,100 335,482 342,203 351,405 348,463 347,404 350,829 357,008
Finance Company loans 62,124 64,006 63,663 64,496 71,461 79,483 86,965 92,315
---------- ---------- ---------- ----------- ---------- ---------- ---------- ----------
Total average loans $2,835,506 $2,918,709 $2,998,797 $$2,970,461 $2,994,191 $3,080,442 $3,201,061 $3,292,593
Net charge-offs to average loans:
Commercial/real estate loans 0.05% 0.00% 0.08% -0.43% 0.15% 0.12% -0.03% 0.04%
Mortgage loans 0.00% 0.01% -0.01% 0.18% 0.03% 0.34% -0.01% 0.02%
Direct consumer loans 0.39% 0.68% 1.49% 0.50% 1.45% 0.85% 0.41% 0.09%
Indirect consumer loans 0.67% 0.40% 0.32% 0.75% 0.45% 0.34% 0.45% 0.77%
Finance Company loans 3.00% 3.17% 4.21% 1.56% 1.58% 2.11% 3.57% 2.15%
Total net charge-offs to average loans 0.24% 0.23% 0.41% -0.01% 0.40% 0.34% 0.19% 0.18%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2005 2006 2007
------------------------------ ------------------------------------------ ---------
2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
--------- --------- -------- --------- --------- --------- -------- ---------
Income Statement
Interest income $64,027 $65,644 $73,429 $81,590 $86,404 $89,233 $87,104 $85,708
Interest income (TE) 65,767 67,506 75,433 83,563 88,375 91,275 89,366 88,124
Interest expense 17,961 19,659 20,911 25,273 28,636 31,988 33,966 34,308
--------- --------- -------- --------- --------- --------- -------- ---------
Net interest income (TE) 47,807 47,847 54,522 58,290 59,740 59,286 55,400 53,816
Provision for (recovery of) loan
losses 1,891 36,905 1,079 (705) - (20,000) (57) 1,211
Noninterest income excluding net
storm-related gain/(loss)
and securities transactions 24,695 21,600 23,016 24,890 25,942 25,627 27,460 25,889
Net storm-related gain/(loss) - 12,276 (5,692) - - - 5,084 -
Securities transactions gains/(losses) (15) (18) (27) 118 - 110 (5,396) 213
Noninterest expense 42,505 42,770 44,626 49,165 51,172 50,336 50,042 49,346
--------- --------- -------- --------- --------- --------- -------- ---------
Income before income taxes 26,350 168 24,112 32,865 32,536 52,645 30,300 26,945
Income tax expense 8,256 (1,267) 5,047 10,854 10,539 16,614 8,538 7,715
--------- --------- -------- --------- --------- --------- -------- ---------
Net income $18,094 $1,435 $19,065 $22,011 $21,998 $36,031 $21,762 $19,229
========= ========= ======== ========= ========= ========= ======== =========
Noninterest Income
and Noninterest Expense
Service charges on deposit accounts $10,459 $7,975 $6,850 $7,884 $9,223 $9,719 $9,402 $9,190
Trust fees 2,859 2,761 2,946 3,078 3,409 3,175 3,624 3,693
Debit card & merchant fees 1,074 1,055 1,717 1,709 1,863 1,744 1,983 1,778
Insurance fees 3,499 4,883 4,837 5,159 4,596 4,146 5,346 4,369
Investment & annuity fees 1,547 1,304 1,037 1,264 1,591 1,595 1,519 1,978
ATM fees 1,154 871 805 1,294 1,273 1,223 1,215 1,324
Secondary mortgage market operations 676 377 670 817 749 1,018 945 911
Other income 3,428 2,374 4,154 3,684 3,239 3,009 3,426 2,646
--------- --------- -------- --------- --------- --------- -------- ---------
Noninterest income excluding net
storm-related gain/(loss)
and securities transactions $24,695 $21,600 $23,016 $24,890 $25,942 $25,627 $27,460 $25,889
Net storm-related gain/(loss) - 12,276 (5,692) - - - 5,084 -
Securities transactions gains/(losses) (15) (18) (27) 118 - 110 (5,396) 213
--------- --------- -------- --------- --------- --------- -------- ---------
Total noninterest income including
storm-related gain/(loss) and
securities transactions $24,680 $33,858 $17,298 $25,008 $25,942 $25,737 $27,147 $26,101
========= ========= ======== ========= ========= ========= ======== =========
Personnel expense $22,925 $24,275 $24,580 $26,202 $26,400 $27,059 $24,092 $26,563
Occupancy expense (net) 2,576 2,617 3,237 3,659 3,474 2,882 3,335 4,073
Equipment expense 2,366 2,319 2,511 2,668 2,816 2,647 2,665 2,272
Other operating expense 14,059 13,044 13,780 15,961 17,976 17,304 19,451 16,015
Amortization of intangibles 578 514 518 675 507 445 499 423
--------- --------- -------- --------- --------- --------- -------- ---------
Total noninterest expense $42,505 $42,770 $44,626 $49,165 $51,172 $50,336 $50,042 $49,346