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 20, 2010 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 2.02 Results of Operations and Financial Condition. On July 20, 2010, Hancock Holding Company issued a press release reporting its second quarter earnings for the period ending June 30, 2010. A copy of this press release and the accompanying financial statements are attached hereto as Exhibit 99.1. Item 7.01 Regulation FD Disclosure. On July 20, 2010, Hancock Holding Company issued a press release reporting its second quarter earnings for the period ending June 30, 2010. A copy of this press release and the accompanying financial statements are attached hereto as Exhibit 99.1. This information is furnished under both Item 2.02 Results of Operations and Financial Condition and Item 7.01 Regulation FD Disclosure. The information in this Form 8-K and Exhibit attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference. Item 9.01 Financial Statements and Exhibits (d) Exhibits Exhibit No. Description 99.1 Earnings Release dated July 20, 2010 for Quarter Ended 06/30/10
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 22, 2010 ----------------------- HANCOCK HOLDING COMPANY (Registrant) By: /s/ Paul D. Guichet -------------------------------- Paul D. Guichet Vice President Investor Relations
HANCOCK HOLDING COMPANY For Immediate Release July 20, 2010 For More Information Carl J. Chaney, President and Chief Executive Officer Michael M. Achary, E.V.P. and Chief Financial Officer Paul D. Guichet, V.P. Investor Relations 800.522.6542 or 228.563.6559 Hancock Holding Company announces earnings for second quarter 2010
GULFPORT, Miss. (July 20, 2010) — Hancock Holding Company (NASDAQ: HBHC) — “the Company” -today announced net income for the quarter ended June 30, 2010. Hancock’s second quarter 2010 net income was $6.5 million, and diluted earnings per share were $0.17. On a year-to-date basis, Hancock earned $20.3 million, with diluted earnings per share of $0.55.
Hancock’s year-to-date 2010 results include the impact of the Company’s recent common stock offering and acquisition of Peoples First Community Bank (Peoples First), both of which were completed in the fourth quarter of 2009.
Hancock’s second quarter earnings were significantly impacted by a larger allowance for loan losses. At June 30, 2010, Hancock’s allowance for loan losses was $77.2 million, which represents an increase of $10.6 million, or 15.9 percent, from the level at March 31, 2010. Approximately $5.4 million of the higher allowance level was necessitated, in part, by a $41.4 million net increase in substandard loans that resulted from the Company’s normal loan review process. The majority of the aforementioned credit quality deterioration was related to the ongoing economic impact of the national recession. In addition, due to recent extraordinary events in the Gulf of Mexico (described below), the Company has established a specific reserve for potential loan losses of $5.2 million.
On April 20, 2010, BP’s Deepwater Horizon oil rig exploded and sank in the Gulf of Mexico just off the Louisiana coast. The Gulf Oil Spill continues to be a complex and ongoing event with significant economic and ecological impacts. In addition, the Gulf Oil Spill already is the largest spill of its kind in both U.S. and Gulf of Mexico history. Much of the relevant information and ultimate impact related to these events is still unknown, including the economic consequences of any deepwater drilling moratorium. The Company does expect significant and potentially lasting impact to the coastal regions in the four U.S. states that comprise Hancock’s footprint.
Shortly after the explosion and sinking of the Deepwater Horizon rig, Hancock began an in-depth assessment of the Company’s loan portfolio in the coastal regions of Hancock’s market area in Louisiana, Mississippi, Alabama and Florida (similar to the process followed to assess loss exposure in the aftermath of Hurricane Katrina in 2005). The process first assessed the overall pool of loans that could have some potential impact from the Gulf Oil Spill. Based on the FDIC loss share coverage on the Peoples First acquired loans, the information contained in the following table is focused on our legacy loan portfolio.
Portfolio Analysis as of May 31, 2010 (dollars in thousands) SIC Industry Description LA MS AL FL TOTAL 0900 Fishing $200 $1,100 $240 $1,540 7011 Hotel/Motel 25,000 30,600 13,500 69,100 5800 Restaurants 22,500 17,500 2,200 1,500 43,700 2092 Seafood Processing 3,600 1,500 5,100 1300 Oil/Gas Extraction 7,000 150 7,150 5551 Boat Dealers 500 1,200 1,700 4400 Transportation by Water 6,500 400 900 7,800 Total $65,300 $52,450 $16,840 $1,500 $136,090 The $136.1 million of potential exposure from the above table represents just 2.7 percent of the Company's total loan portfolio at May 31, 2010. The above loan concentrations were then rated for potential negative or even positive impact. This analysis concluded that the Company could have about $26.1 million of negatively impacted loans in the following states: o Mississippi $5.3 million o Louisiana $13.7 million o Alabama $7.1 million o Florida $0.0 million From this analysis, it was then determined that a specific reserve of $5.2 million would be necessary to cover any potential losses that could arise from events related to the Gulf Oil Spill. Excluding the pre-tax impact of $1.7 million of one-time costs related to the acquisition of Peoples First and the aforementioned $5.2 million special reserve for potential losses related to the Gulf Oil Spill, net income for the second quarter was $11.0 million and diluted earnings per share was $0.30. Return on average assets (excluding the aforementioned special items) for the second quarter was 0.52 percent. Compared to the second quarter of 2009, net income for 2010's second quarter (excluding one-time merger costs and specific reserve) was down $2.7 million, while diluted earnings per share were $0.13 lower. Hancock's pre-tax, pre-provision income for the second quarter was $32.8 million, an increase of $1.2 million, or 3.7 percent, over the first quarter of 2010. Pre-tax pre-provision income is total revenue less non-interest expense and excludes one-time merger expenses and securities transactions. Commenting on the Company's second quarter results, Hancock Holding Company President and Chief Executive Officer Carl J. Chaney stated, "Hancock continues to monitor events in the Gulf of Mexico and also stands ready to assist our clients that may be impacted by the Gulf Oil Spill. We join the communities all along the Gulf Coast affected by these events in expressing concern and hope around efforts to stop the oil spill, ultimate clean up, and then eventual recovery. As we did in the aftermath of Hurricane Katrina in 2005, the Company reacted quickly in assessing our overall loss exposure and then established a specific reserve for potential losses related to the Gulf Oil Spill of $5.2 million. Separate from the Gulf Oil Spill, the Company has experienced some deterioration in our loan portfolio, mostly related to the continued decline in real estate values and overall duration of the current economic recession, which required a separate $5.4 million increase in the allowance for loan losses. Hancock continues to generate significant capital, adding to our robust capitalization levels, while paying out a healthy dividend to our shareholders (tangible equity of 9.32 percent at June 30 and annualized dividends of $0.96 per share). This capital strength is supplemented with strong levels of operating earnings (pre-tax pre-provision earnings of $32.8 million in the second quarter) and will enable us to weather the current set of challenges as we have countless times before."
Highlights & Key Operating Items from Hancock's Second Quarter Results Balance Sheet & Capital Total assets at June 30, 2010, were $8.50 billion, down $65.5 million, or 0.8 percent, from $8.57 billion at March 31, 2010. Compared to June 30, 2009, total assets increased $1.45 billion, or 20.6 percent. The overall increase in total assets from 2009's second quarter was due to the acquisition of Peoples First in December 2009. Hancock continued to remain very well capitalized with total equity of $861.3 million at June 30, 2010, up $230.5 million, or 36.5 percent, from June 30, 2009. Hancock's tangible equity ratio at June 30, 2010, was 9.32 percent, up 22 basis points from the 9.10 percent reported at March 31, 2010. Loan Growth For the quarter ended June 30, 2010, Hancock's average total loans were $5.01 billion, which represented an increase of $731.5 million, or 17.1 percent, from the same quarter a year ago but was down $79.7 million, or 1.6 percent, from the first quarter of 2010. The increased level of average loans from the same quarter a year ago was related to the acquisition of Peoples First in which Hancock acquired $950 million of fair-value adjusted loans with loss share coverage from the FDIC. Period-end loans were down $39.5 million, or 0.8 percent, from March 31, 2010. The decrease in period-end loans was reflected in commercial/real estate (down $77.9 million, or 2.5 percent), indirect consumer loans (down $16.5 million or 4.8 percent), and finance company loans (down $2.0 million or 1.9 percent). The overall decline in loans was offset by increases in mortgage loans (up $32.9 million or 4.6 percent) and direct consumer loans (up $24.0 million or 3.3 percent). Deposit Growth Period-end deposits for the second quarter were $6.96 billion, up $1.30 billion, or 23.1 percent, from June 30, 2009, but were down $44.2 million, or 0.6 percent, from March 31, 2010. The increase in period-end deposits as compared to June 30, 2009, was due primarily to the acquisition of People's First. Average deposits were down $129.1 million, or 1.8 percent, from the first quarter of 2010 but were up $1.29 billion, or 22.5 percent, from June 30, 2009. The increase in average deposits from the same quarter a year ago was due to the acquisition of Peoples First in December 2009. Asset Quality Net charge-offs for 2010's second quarter were $13.9 million, or 1.11 percent of average loans, up $0.7 million from the $13.3 million, or 1.06 percent of average loans, reported for the first quarter of 2010. Non-performing assets as a percent of total loans and foreclosed assets were 3.66 percent at June 30, 2010, up from 2.44 percent at March 31, 2010. Non-accrual loans increased $46 million, while other real estate owned (ORE) increased $14.7 million compared to the prior quarter. Loans 90 days past due or greater (accruing) as a percent of period end loans, decreased 11 basis points from March 31, 2010 to 0.16 percent at June 30, 2010. Hancock recorded a provision for loan losses for the second quarter of $24.5 million. The Company's allowance for loan losses was $77.2 million at June 30, 2010, and $66.6 million at March 31, 2010. The ratio of the allowance for loan losses as a percent of period-end loans was 1.55 percent at June 30, 2010, compared to 1.33 percent at March 31, 2010. As previously mentioned, the Company's allowance for loan losses at June 30, 2010, was increased $10.6 million, or 15.9 percent, from the level at March 31, 2010. Of the $10.6 million increase, approximately $5.4 million was necessitated by an increase in substandard loans that resulted from the Company's normal loan review process. The remaining increase of $5.2 million was due to the specific reserve for potential losses related to the Gulf Oil Spill.
Additional asset quality information (inclusive and exclusive of the covered assets of Peoples First) is provided in the following table: Consolidated Consolidated Hancock Without Asset Quality Information Holding Company People's First -------------------- ---------------- Non-accrual loans $138,793 $95,600 Foreclosed assets 44,901 18,488 Total non-performing assets $183,694 $114,088 Non-performing assets as a percent of loans and foreclosed assets 3.66% 2.76% Accruing loans 90 days past due (a) $8,002 $8,002 Accruing loans 90 days past due as a percent of loans 0.16% 0.19% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 3.82% 2.95% Allowance for loan losses $77,221 $77,221 Allowance for loan losses as a percent of period-end loans 1.55% 1.88% Allowance for loan losses to NPAs + accruing loans 90 days past due 40.28% 63.25% (a) Accruing loans past due 90 days or more do not include purchased impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan. Net Interest Income Net interest income (taxable equivalent or te) for the second quarter increased $11.3 million, or 18.9 percent, while the net interest margin (te) of 3.87 percent was 9 basis points wider than the same quarter a year ago. Growth in average earning assets was strong compared to the same quarter a year ago with an increase of $1.02 billion, or 16.1 percent, mostly reflected in higher average loans (up $731.5 million, or 17.1 percent) and was due primarily to the fourth quarter 2009 acquisition of Peoples First. The Company's loan yield increased 7 basis points over the prior year's second quarter, while the yield on securities decreased 45 basis points, pushing the yield on average earning assets down 20 basis points. However, total funding costs over the same quarter a year ago were down 29 basis points. Compared to the prior quarter, the net interest margin (te) widened 12 basis points, and the level of net interest income was up $1.33 million, or 1.9 percent. The yield on average earning assets was down 9 basis points from last quarter at 5.06 percent, while the total cost of funds decreased 21 basis points. Non-interest Income Non-interest income for the second quarter was up $0.8 million, or 2.3 percent, compared to the same quarter a year ago and increased $3.9 million, or 12.5 percent, compared to the previous quarter. Factors impacting non-interest income compared to the same quarter a year ago were higher levels of debit card and merchant fees (up $1.0 million or 35.7 percent), service charges on deposit accounts (up $1.1 million or 9.7 percent), trust fees (up $0.6 million or 14.4 percent), investment and annuity fees (up $1.0 million or 57.5 percent), and ATM fees (up $0.4 million or 22.5 percent) partially offset by a decrease in other income of $2.6 million, or 36.5 percent, primarily due to gains on sales of land in prior year. The increase in non-interest income compared to the prior quarter was due to the increase in service charges on deposit accounts (up $0.8 million or 7.3 percent), trust fees (up $0.6 million or 14.6 percent), debit card and merchant fees (up $0.3 million or 9.2 percent), investment and annuity fees (up $0.4 million or 16.9 percent), ATM fees (up $0.4 million or 19.0 percent), and other income (up $1.4 million or 45.9 percent).
Operating Expense & Taxes Operating expenses for the second quarter were up $13.9 million, or 23.9 percent, compared to the same quarter a year ago, and were $4.3 million, or 6.3 percent, higher than the previous quarter. The increase from the same quarter a year ago was reflected in higher other operating expense (up $5.8 million or 27.0 percent), personnel expense (up $6.7 million or 23.3 percent), occupancy expense (up $1.0 million or 20.1 percent) and was primarily due to the acquisition of Peoples First. One-time merger costs included in the second quarter of 2010 were $1.7 million. The increase from the prior quarter was due to an increase in personnel costs (up $0.6 million or 1.8 percent) and other operating expense (up $3.9 million or 16.8 percent). For the six months ended June 30, 2010, and 2009, the effective income tax rates were approximately 11 percent and 19 percent, respectively. Because of the reduced level of pre-tax income in 2010, the tax exempt interest income and the utilization of tax credits (new market tax credits, worker opportunity tax credits, and historical tax credits) had a significant impact on the effective tax rate. About Hancock Holding Company Hancock Holding Company - parent company of Hancock Bank (Mississippi), Hancock Bank of Louisiana, and Hancock Bank of Alabama - had assets of approximately $8.5 billion as of June 30, 2010. Founded in 1899, Hancock Bank consistently ranks as one of the country's strongest, safest financial institutions, according to BauerFinancial, Inc. More corporate information and e-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.
Hancock Holding Company Financial Highlights (amounts in thousands, except per share data and FTE headcount) (unaudited) Three Months Ended Six Months Ended -------------------------------------- -------------------- 6/30/2010 3/31/2010 6/30/2009 6/30/2010 6/30/2009 -------------------------------------- -------------------- Per Common Share Data Earnings per share: Basic $0.17 $0.37 $0.43 $0.55 $0.87 Diluted $0.17 $0.37 $0.43 $0.55 $0.87 Cash dividends per share $0.24 $0.24 $0.24 $0.48 $0.48 Book value per share (period-end) $23.36 $23.05 $19.82 $23.36 $19.82 Tangible book value per share (period-end) $21.28 $20.94 $17.68 $21.28 $17.68 Weighted average number of shares: Basic 36,876 36,868 31,820 36,855 31,812 Diluted 37,078 37,105 32,009 37,075 31,973 Period-end number of shares 36,877 36,905 31,827 36,877 31,827 Market data: High sales price $43.90 $45.86 $41.19 $45.86 $45.56 Low sales price $33.27 $38.23 $30.12 $33.27 $22.51 Period end closing price $33.36 $41.81 $32.49 $33.36 $32.49 Trading volume 12,443 9,612 17,040 22,055 35,093 Other Period-end Data FTE headcount 2,278 2,263 1,911 2,278 1,911 Tangible common equity $784,872 $772,735 $562,800 $784,872 $562,800 Tier I capital $764,608 $764,074 $565,807 $764,608 $565,807 Goodwill $61,631 $62,277 $62,277 $61,631 $62,277 Amortizable intangibles $14,516 $15,521 $5,350 $14,516 $5,350 Performance Ratios Return on average assets 0.31% 0.65% 0.78% 0.48% 0.79% Return on average common equity 3.03% 6.58% 8.67% 4.78% 8.89% Earning asset yield (TE) 5.06% 5.15% 5.26% 5.11% 5.26% Total cost of funds 1.19% 1.40% 1.48% 1.30% 1.62% Net interest margin (TE) 3.87% 3.75% 3.78% 3.81% 3.64% Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions 67.26% 66.43% 61.47% 66.86% 63.12% Common equity (period-end) as a percent of total assets (period-end) 10.13% 9.93% 8.95% 10.13% 8.95% Leverage (Tier I) ratio 9.06% 8.91% 8.13% 9.06% 8.13% Tangible common equity ratio 9.32% 9.10% 8.06% 9.32% 8.06% Net charge-offs as a percent of average loans 1.11% 1.06% 1.50% 1.09% 1.09% Allowance for loan losses as a percent of period-end loans 1.55% 1.33% 1.49% 1.55% 1.49% Allowance for loan losses to NPAs + accruing loans 90 days past due 40.28% 48.80% 117.14% 40.28% 117.14% Average loan/deposit ratio 71.63% 71.45% 74.95% 71.54% 73.72% Non-interest income excluding securities transactions as a percent of total revenue (TE) 33.23% 31.08% 36.65% 32.18% 35.39%
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended Six Months Ended --------------------------------------- ---------------------- 6/30/2010 3/31/2010 6/30/2009 6/30/2010 6/30/2009 --------------------------------------- ---------------------- Asset Quality Information Non-accrual loans $138,793 $92,828 $34,189 $138,793 $34,189 Foreclosed assets 44,901 30,243 8,884 44,901 8,884 --------------------------------------- ---------------------- Total non-performing assets $183,694 $123,071 $43,073 $183,694 $43,073 --------------------------------------- ---------------------- Non-performing assets as a percent of loans and foreclosed assets 3.66% 2.44% 1.01% 3.66% 1.01% Accruing loans 90 days past due (a) $8,002 $13,457 $11,435 $8,002 $11,435 Accruing loans 90 days past due as a percent of loans 0.16% 0.27% 0.27% 0.16% 0.27% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 3.82% 2.71% 1.27% 3.82% 1.27% Net charge-offs $13,921 $13,251 $16,019 $27,172 $23,136 Net charge-offs as a percent of average loans 1.11% 1.06% 1.50% 1.09% 1.09% Allowance for loan losses $77,221 $66,625 $63,850 $77,221 $63,850 Allowance for loan losses as a percent of period-end loans 1.55% 1.33% 1.49% 1.55% 1.49% Allowance for loan losses to NPAs + accruing loans 90 days past due 40.28% 48.80% 117.14% 40.28% 117.14% Provision for loan losses $24,517 $13,826 $16,919 $38,343 $25,261 (a) Accruing loans past due 90 days or more do not include purchased impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan. Allowance for Loan Losses Beginning Balance $66,625 $66,050 $62,950 $66,050 $61,725 Provision for loan loss 24,517 13,826 16,919 38,343 25,261 Charge-offs 14,998 15,160 17,144 30,158 25,421 Recoveries 1,077 1,909 1,125 2,986 2,285 --------------------------------------- ---------------------- Net charge-offs 13,921 13,251 16,019 27,172 23,136 --------------------------------------- ---------------------- Ending Balance $77,221 $66,625 $63,850 $77,221 $63,850 --------------------------------------- ---------------------- Net Charge-off Information Net charge-offs: Commercial/real estate loans $10,537 $10,238 $12,524 $20,775 $17,060 Mortgage loans 569 608 199 1,177 376 Direct consumer loans 1,241 608 1,226 1,849 1,825 Indirect consumer loans 449 608 717 1,057 1,564 Finance company loans 1,125 1,189 1,353 2,314 2,311 --------------------------------------- ---------------------- Total net charge-offs $13,921 $13,251 $16,019 $27,172 $23,136 ======================================= ====================== Average loans: Commercial/real estate loans $3,090,655 $3,145,748 $2,696,500 $3,118,049 $2,692,553 Mortgage loans 745,019 735,279 452,324 740,176 449,050 Direct consumer loans 729,083 737,728 596,725 733,382 601,180 Indirect consumer loans 336,260 359,965 420,444 348,047 425,675 Finance Company loans 107,821 109,819 111,358 108,815 112,884 --------------------------------------- ---------------------- Total average loans $5,008,838 $5,088,539 $4,277,351 $5,048,469 $4,281,342 Net charge-offs to average loans: Commercial/real estate loans 1.37% 1.32% 1.86% 1.34% 1.28% Mortgage loans 0.31% 0.34% 0.18% 0.32% 0.17% Direct consumer loans 0.68% 0.33% 0.82% 0.51% 0.61% Indirect consumer loans 0.54% 0.69% 0.68% 0.61% 0.74% Finance Company loans 4.19% 4.39% 4.87% 4.29% 4.13% --------------------------------------- ---------------------- Total net charge-offs to average loans 1.11% 1.06% 1.50% 1.09% 1.09%
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended Six Months Ended ------------------------------------ ----------------------- 6/30/2010 3/31/2010 6/30/2009 6/30/2010 6/30/2009 ------------------------------------ ----------------------- Income Statement Interest income $89,741 $92,379 $80,105 $182,119 $161,553 Interest income (TE) 92,788 95,396 83,054 188,184 167,446 Interest expense 21,868 25,800 23,413 47,668 51,415 ------------------------------------ ----------------------- Net interest income (TE) 70,920 69,596 59,641 140,516 116,031 Provision for loan losses 24,517 13,826 16,919 38,343 25,261 Noninterest income excluding securities transactions 35,293 31,381 34,504 66,674 63,559 Securities transactions gains/(losses) - - - - - Noninterest expense 72,122 67,822 58,226 139,943 114,064 ------------------------------------ ----------------------- Income before income taxes 6,527 16,312 16,051 22,839 34,372 Income tax expense 27 2,478 2,305 2,505 6,595 ------------------------------------ ----------------------- Net income $6,500 $13,834 $13,746 $20,334 $27,777 ==================================== ======================= Pre-tax, pre-provision income (PTPP) (b) $32,762 $31,587 $32,970 $64,349 $59,633 Noninterest Income and Noninterest Expense Service charges on deposit accounts $12,327 $11,490 $11,242 $23,816 $21,745 Trust fees 4,408 3,846 3,855 8,254 7,181 Debit card & merchant fees 3,928 3,596 2,895 7,524 5,463 Insurance fees 3,641 3,511 4,048 7,153 7,500 Investment & annuity fees 2,663 2,279 1,691 4,942 4,551 ATM fees 2,321 1,951 1,895 4,272 3,674 Secondary mortgage market operations 1,529 1,640 1,827 3,169 2,985 Gain on acquisition - - - - - Other income 4,476 3,068 7,051 7,544 10,460 ------------------------------------ ----------------------- Noninterest income excluding securities transactions $35,293 $31,381 $34,504 $66,674 $63,559 Securities transactions gains/(losses) - - - - - ------------------------------------ ----------------------- Total noninterest income including securities transactions $35,293 $31,381 $34,504 $66,674 $63,559 ==================================== ======================= Personnel expense $35,379 $34,767 $28,703 $70,146 $59,478 Occupancy expense (net) 6,026 6,143 5,016 12,169 10,071 Equipment expense 2,642 2,724 2,583 5,367 5,117 Other operating expense 27,391 23,450 21,570 50,839 38,689 Amortization of intangibles 684 738 354 1,422 709 ------------------------------------ ----------------------- Total noninterest expense $72,122 $67,822 $58,226 $139,943 $114,064 ==================================== ======================= (b) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense, one-time merger expenses, and securities transactions. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle.
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended Six Months Ended ----------------------------------------------- ---------------------------- 6/30/2010 3/31/2010 6/30/2009 6/30/2010 6/30/2009 ----------------------------------------------- ---------------------------- Period-end Balance Sheet Commercial/real estate loans $3,042,654 $3,120,584 $2,747,048 $3,042,654 $2,747,048 Mortgage loans 751,259 718,333 405,896 751,259 405,896 Direct consumer loans 743,118 719,071 590,742 743,118 590,742 Indirect consumer loans 329,658 346,160 418,595 329,658 418,595 Finance Company loans 105,513 107,542 110,375 105,513 110,375 ----------------------------------------------- ---------------------------- Total loans 4,972,202 5,011,690 4,272,656 4,972,202 4,272,656 Loans held for sale 42,769 22,210 47,194 42,769 47,194 Securities 1,686,671 1,758,972 1,596,157 1,686,671 1,596,157 Short-term investments 720,314 689,014 490,674 720,314 490,674 ----------------------------------------------- ---------------------------- Earning assets 7,421,956 7,481,886 6,406,681 7,421,956 6,406,681 ----------------------------------------------- ---------------------------- Allowance for loan losses (77,221) (66,625) (63,850) (77,221) (63,850) Other assets 1,155,283 1,150,219 704,484 1,155,283 704,484 ----------------------------------------------- ---------------------------- Total assets $8,500,018 $8,565,480 $7,047,315 $8,500,018 $7,047,315 =============================================== ============================ Noninterest bearing deposits $1,050,118 $1,022,372 $953,435 $1,050,118 $953,435 Interest bearing transaction deposits 1,930,738 1,931,749 1,457,020 1,930,738 1,457,020 Interest bearing Public Fund deposits 1,205,874 1,187,410 1,316,740 1,205,874 1,316,740 Time deposits 2,773,841 2,863,196 1,929,033 2,773,841 1,929,033 ----------------------------------------------- ---------------------------- Total interest bearing deposits 5,910,453 5,982,355 4,702,793 5,910,453 4,702,793 ----------------------------------------------- ---------------------------- Total deposits 6,960,571 7,004,727 5,656,228 6,960,571 5,656,228 Other borrowed funds 546,343 578,777 638,166 546,343 638,166 Other liabilities 131,822 131,173 122,147 131,822 122,147 Common shareholders' equity 861,282 850,803 630,774 861,282 630,774 ----------------------------------------------- ---------------------------- Total liabilities & common equity $8,500,018 $8,565,480 $7,047,315 $8,500,018 $7,047,315 =============================================== ============================ Commercial Loans/Real Estate Loans Commercial non-real estate loans $521,019 $439,636 $495,406 $521,019 $495,406 Construction and land development loans 609,727 801,474 567,950 609,727 567,950 Commercial real estate secured loans 1,392,874 1,360,774 1,137,032 1,392,874 1,137,032 Municipal loans 463,076 459,208 483,382 463,076 483,382 Lease financing 55,958 59,492 63,278 55,958 63,278 ----------------------------------------------- ---------------------------- Total commercial/real estate loans $3,042,654 $3,120,584 $2,747,048 $3,042,654 $2,747,048 =============================================== ============================ Construction and Land Development Loans Residential construction $144,384 $109,176 $83,355 $144,384 $83,355 Commercial owner occupied 88,035 172,977 99,881 88,035 99,881 Commercial non-owner occupied 57,648 114,752 88,218 57,648 88,218 Land development 164,892 249,461 192,508 164,892 192,508 Lots 154,768 155,108 103,988 154,768 103,988 ----------------------------------------------- ---------------------------- Total construction and land development loans $609,727 $801,474 $567,950 $609,727 $567,950 =============================================== ============================ Commercial Real Estate Secured Loans Commercial real estate owner occupied $676,574 $691,371 $594,244 $676,574 $594,244 Commercial real estate non-owner occupied 716,300 669,403 542,788 716,300 542,788 ----------------------------------------------- ---------------------------- Total commercial real estate secured loans $1,392,874 $1,360,774 $1,137,032 $1,392,874 $1,137,032 =============================================== ============================
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended Six Months Ended ------------------------------------------------ ---------------------------- 6/30/2010 3/31/2010 6/30/2009 6/30/2010 6/30/2009 ------------------------------------------------ ---------------------------- Average Balance Sheet Commercial/real estate loans 3,090,655 3,145,748 $2,696,500 $3,118,049 $2,692,553 Mortgage loans 745,019 735,279 452,324 740,176 449,050 Direct consumer loans 729,083 737,728 596,725 733,382 601,180 Indirect consumer loans 336,260 359,965 420,444 348,047 425,675 Finance Company loans 107,821 109,819 111,358 108,815 112,884 ------------------------------------------------ ---------------------------- Total loans 5,008,838 5,088,539 4,277,351 5,048,469 4,281,342 Securities 1,646,418 1,572,883 1,580,287 1,609,853 1,614,758 Short-term investments 688,648 813,122 466,350 750,541 501,688 ------------------------------------------------ ---------------------------- Earning average assets 7,343,904 7,474,544 6,323,988 7,408,863 6,397,788 ------------------------------------------------ ---------------------------- Allowance for loan losses (67,901) (66,170) (63,027) (67,041) (62,681) Other assets 1,235,552 1,246,022 764,651 1,240,759 769,205 ------------------------------------------------ ---------------------------- Total assets $8,511,555 $8,654,396 $7,025,612 $8,582,581 $7,104,312 ================================================ ============================ Noninterest bearing deposits $1,069,795 $1,018,863 $955,050 $1,044,470 $934,542 Interest bearing transaction deposits 1,920,797 1,894,997 1,497,395 1,907,968 1,480,194 Interest bearing Public Fund deposits 1,173,579 1,275,202 1,376,203 1,224,110 1,437,438 Time deposits 2,828,846 2,933,094 1,878,473 2,880,682 1,955,770 ------------------------------------------------ ---------------------------- Total interest bearing deposits 5,923,222 6,103,293 4,752,071 6,012,760 4,873,402 ------------------------------------------------ ---------------------------- Total deposits 6,993,017 7,122,156 5,707,121 7,057,230 5,807,944 Other borrowed funds 527,808 543,307 573,739 535,515 555,209 Other liabilities 129,595 135,814 108,666 132,687 110,963 Common shareholders' equity 861,135 853,119 636,086 857,149 630,196 ------------------------------------------------ ---------------------------- Total liabilities & common equity $8,511,555 $8,654,396 $7,025,612 $8,582,581 $7,104,312 ================================================ ============================
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended Six Months Ended ----------------------------------------------- ----------------------------- 6/30/2010 3/31/2010 6/30/2009 6/30/2010 6/30/2009 ----------------------------------------------- ----------------------------- Average Balance Sheet Mix Percentage of earning assets/funding sources: Loans 68.20% 68.08% 67.64% 68.14% 66.92% Securities 22.42% 21.04% 24.99% 21.73% 25.24% Short-term investments 9.38% 10.88% 7.37% 10.13% 7.84% ----------------------------------------------- ----------------------------- Earning average assets 100.00% 100.00% 100.00% 100.00% 100.00% =============================================== ============================= Noninterest bearing deposits 14.57% 13.63% 15.10% 14.10% 14.61% Interest bearing transaction deposits 26.15% 25.35% 23.68% 25.75% 23.14% Interest bearing Public Fund deposits 15.98% 17.06% 21.76% 16.52% 22.47% Time deposits 38.52% 39.24% 29.71% 38.88% 30.56% ----------------------------------------------- ----------------------------- Total deposits 95.22% 95.28% 90.25% 95.25% 90.78% Other borrowed funds 7.19% 7.27% 9.07% 7.23% 8.68% Other net interest-free funding sources -2.41% -2.55% 0.68% -2.48% 0.54% ----------------------------------------------- ----------------------------- Total average funding sources 100.00% 100.00% 100.00% 100.00% 100.00% =============================================== ============================= Loan mix: Commercial/real estate loans 61.71% 61.82% 63.05% 61.76% 62.89% Mortgage loans 14.87% 14.45% 10.57% 14.66% 10.49% Direct consumer loans 14.56% 14.50% 13.95% 14.53% 14.04% Indirect consumer loans 6.71% 7.07% 9.83% 6.89% 9.94% Finance Company loans 2.15% 2.16% 2.60% 2.16% 2.64% ----------------------------------------------- ----------------------------- Total loans 100.00% 100.00% 100.00% 100.00% 100.00% =============================================== ============================= Average dollars (in thousands): Loans $5,008,838 $5,088,539 $4,277,351 $5,048,469 $4,281,342 Securities 1,646,418 1,572,883 1,580,287 1,609,853 1,614,758 Short-term investments 688,648 813,122 466,350 750,541 501,688 ----------------------------------------------- ----------------------------- Earning average assets $7,343,904 $7,474,544 $6,323,988 $7,408,863 $6,397,788 Noninterest bearing deposits $1,069,795 $1,018,863 $955,050 $1,044,470 $934,542 Interest bearing transaction deposits 1,920,797 1,894,997 1,497,395 1,907,968 1,480,194 Interest bearing Public Fund deposits 1,173,579 1,275,202 1,376,203 1,224,110 1,437,438 Time deposits 2,828,846 2,933,094 1,878,473 2,880,682 1,955,770 ----------------------------------------------- ----------------------------- Total deposits 6,993,017 7,122,156 5,707,121 7,057,230 5,807,944 Other borrowed funds 527,808 543,307 573,739 535,515 555,209 Other net interest-free funding sources (176,921) (190,919) 43,128 (183,882) 34,635 ----------------------------------------------- ----------------------------- Total average funding sources $7,343,904 $7,474,544 $6,323,988 $7,408,863 $6,397,788 Loans: Commercial/real estate loans $3,090,655 $3,145,748 $2,696,500 $3,118,049 $2,692,553 Mortgage loans 745,019 735,279 452,324 740,176 449,050 Direct consumer loans 729,083 737,728 596,725 733,382 601,180 Indirect consumer loans 336,260 359,965 420,444 348,047 425,675 Finance Company loans 107,821 109,819 111,358 108,815 112,884 ----------------------------------------------- ----------------------------- Total average loans $5,008,838 $5,088,539 $4,277,351 $5,048,469 $4,281,342
Hancock Holding Company Financial Highlights (amounts in thousands, except per share data and FTE headcount) (unaudited) Three Months Ended ----------------------------------------------------------- 6/30/2010 3/31/2010 6/30/2009 ----------------------------------------------------------- Asset Quality Information Non-accrual loans $138,793 $92,828 $34,189 Foreclosed assets 44,901 30,243 8,884 ----------------------------------------------------------- Total non-performing assets $183,694 $123,071 $43,073 ----------------------------------------------------------- Non-performing assets as a percent of loans and foreclosed assets 3.66% 2.44% 1.01% Accruing loans 90 days past due (a) $8,002 $13,457 $11,435 Accruing loans 90 days past due as a percent of loans 0.16% 0.27% 0.27% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 3.82% 2.71% 1.27% Allowance for loan losses $77,221 $66,625 $63,850 Allowance for loan losses as a percent of period-end loans 1.55% 1.33% 1.49% Allowance for loan losses to NPAs + accruing loans 90 days past due 40.28% 48.80% 117.14% 6/30/10 ----------------------------------------------------------- Non-Covered Loans Covered Loans Total ----------------------------------------------------------- Non-accrual loans $95,600 $43,193 $138,793 Foreclosed assets 18,488 26,413 44,901 ----------------------------------------------------------- Total non-performing assets $114,088 $69,606 $183,694 ----------------------------------------------------------- Non-performing assets as a percent of loans and foreclosed assets 2.76% 7.88% 3.66% Accruing loans 90 days past due (a) 8,002 - $8,002 Accruing loans 90 days past due as a percent of loans 0.19% - 0.16% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 2.95% 7.88% 3.82% Allowance for loan losses 77,221 - 77,221 Allowance for loan losses as a percent of period-end loans 1.88% - 1.55% Allowance for loan losses to NPAs + accruing loans 90 days past due 63.25% - 40.28% 3/31/10 ----------------------------------------------------------- Non-Covered Loans Covered Loans Total ----------------------------------------------------------- Non-accrual loans $37,251 $55,577 $92,828 Foreclosed assets 16,051 14,192 30,243 ----------------------------------------------------------- Total non-performing assets $53,302 $69,769 $123,071 ----------------------------------------------------------- Non-performing assets as a percent of loans and foreclosed assets 1.29% 7.67% 2.44% Accruing loans 90 days past due (a) 13,457 - 13,457 Accruing loans 90 days past due as a percent of loans 0.33% - 0.27% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 1.62% 2.71% Allowance for loan losses 66,625 - 66,625 Allowance for loan losses as a percent of period-end loans 1.62% - 1.33% Allowance for loan losses to NPAs + accruing loans 90 days past due 48.80% - 99.80%
Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) Three Months Ended ------------------------------------------------------- 6/30/2010 3/31/2010 6/30/2009 ------------------------------------------------------- Period-end Balance Sheet Commercial/real estate loans $3,042,654 $3,120,584 $2,747,048 Mortgage loans 751,259 718,333 405,896 Direct consumer loans 743,118 719,071 590,742 Indirect consumer loans 329,658 346,160 418,595 Finance Company loans 105,513 107,542 110,375 ------------------------------------------------------- Total loans 4,972,202 5,011,690 4,272,656 6/30/10 ------------------------------------------------------- Non-Covered Covered Loans Loans© Total ------------------------------------------------------- Commercial/real estate loans $2,674,114 $368,540 $3,042,654 Mortgage loans 447,365 303,894 751,259 Direct consumer loans 558,785 184,333 743,118 Indirect consumer loans 329,658 - 329,658 Finance Company loans 105,513 - 105,513 ------------------------------------------------------- Total loans $4,115,435 $856,767 $4,972,202 3/31/10 ------------------------------------------------------- Non-Covered Covered Loans Loans© Total ------------------------------------------------------- Commercial/real estate loans $2,735,258 $385,326 $3,120,584 Mortgage loans 400,597 317,736 718,333 Direct consumer loans 526,342 192,729 719,071 Indirect consumer loans 346,160 - 346,160 Finance Company loans 107,542 - 107,542 ------------------------------------------------------- Total loans $4,115,899 $895,791 $5,011,690 (c) Assets covered under the FDIC loss share agreements, which provide considerable protection against credit risk.
Hancock Holding Company Average Balance and Net Interest Margin Summary (amounts in thousands) (unaudited) Three Months Ended ------------------------------------------------------------------------------------------- 06/30/10 03/31/10 06/30/09 ---------------------------------------------------------------- -------------------------- Interest Volume Rate Interest Volume Rate Interest Volume Rate ----------------------------- ------------------------------- --------------------------- Average Earning Assets Commercial & real estate loans (TE) $39,728 $3,090,655 5.15% $42,603 $3,145,748 5.48% $35,573 $2,696,500 5.29% Mortgage loans 11,880 745,019 6.38% 12,217 735,279 6.65% 6,411 452,324 5.67% Consumer loans 21,882 1,173,164 7.48% 21,491 1,207,512 7.22% 20,067 1,128,527 7.13% Loan fees & late charges 259 - 0.00% 228 - 0.00% 188 - 0.00% ----------------------------- ------------------------------- --------------------------- Total loans (TE) $73,749 $5,008,838 5.90% $76,539 $5,088,539 6.08% $62,239 4,277,351 5.83% US treasury securities 26 11,843 0.88% 15 11,838 0.50% 46 11,146 1.65% US agency securities 1,407 206,522 2.72% 1,387 163,132 3.40% 1,699 171,430 3.96% CMOs 2,795 278,198 4.02% 2,063 168,129 4.91% 2,110 167,295 5.04% Mortgage backed securities 11,250 942,548 4.77% 12,051 1,022,288 4.72% 13,052 1,043,590 5.00% Municipals (TE) 2,933 190,936 6.14% 2,491 192,447 5.18% 2,369 160,703 5.90% Other securities 178 16,371 4.36% 261 15,049 6.94% 340 26,123 5.20% ----------------------------- ------------------------------- --------------------------- Total securities (TE) 18,589 1,646,418 4.52% 18,268 1,572,883 4.65% 19,616 1,580,287 4.97% Total short-term investments 450 688,648 0.26% 589 813,122 0.29% 1,198 466,350 1.03% Average earning assets yield (TE) $92,788 $7,343,904 5.06% $95,396 $7,474,544 5.15% $83,053 $6,323,988 5.26% Interest-bearing Liabilities Interest-bearing transaction deposits $2,599 $1,920,797 0.54% $2,503 $1,894,997 0.54% $1,966 $1,497,395 0.53% Time deposits 14,309 2,828,846 2.03% 17,537 2,933,094 2.42% 13,524 1,878,473 2.89% Public Funds 2,492 1,173,579 0.85% 3,243 1,275,202 1.03% 5,213 1,376,203 1.52% ----------------------------- ------------------------------- --------------------------- Total interest bearing deposits $19,400 5,923,222 1.31% $23,283 6,103,293 1.55% $20,703 4,752,071 1.75% Total borrowings 2,468 527,808 1.88% 2,517 543,307 1.88% 2,710 573,739 1.89% Total interest bearing liab cost $21,868 $6,451,030 1.36% $25,800 $6,646,600 1.57% $23,413 $5,325,810 1.76% Net interest-free funding sources 892,874 827,944 998,178 Total Cost of Funds $21,868 $7,343,904 1.19% $25,800 $7,474,544 1.40% $23,413 $6,323,988 1.48% Net Interest Spread (TE) $70,920 3.70% $69,596 3.57% $59,640 3.50% Net Interest Margin (TE) $70,920 $7,343,904 3.87% $69,596 $7,474,544 3.75% $59,640 $6,323,988 3.78%
Hancock Holding Company Average Balance and Net Interest Margin Summary (amounts in thousands) (unaudited) Six Months Ended ---------------------------------- ------------------------------------ 6/30/2010 6/30/2009 ---------------------------------- ------------------------------------ Interest Volume Rate Interest Volume Rate ---------------------------------- ------------------------------------ Average Earning Assets Commercial & real estate loans (TE) $82,331 $3,118,049 5.32% $70,037 $2,692,553 5.24% Mortgage loans 24,097 740,176 6.51% 12,866 449,050 5.73% Consumer loans 43,373 1,190,244 7.35% 40,634 1,139,739 7.19% Loan fees & late charges 487 - 0.00% 533 - 0.00% ---------------------------------- ------------------------------------ Total loans (TE) 150,288 $5,048,469 5.99% 124,070 $4,281,342 5.83% US treasury securities 41 11,841 0.69% 96 11,230 1.73% US agency securities 2,793 184,947 3.02% 4,015 198,565 4.04% CMOs 4,858 223,468 4.35% 4,418 177,541 4.98% Mortgage backed securities 23,301 982,197 4.74% 26,422 1,044,659 5.06% Municipals (TE) 5,424 191,687 5.66% 4,654 157,502 5.91% Other securities 440 15,714 5.59% 702 25,261 5.56% ---------------------------------- ------------------------------------ Total securities (TE) 36,857 1,609,854 4.58% 40,307 1,614,758 4.99% Total short-term investments 1,039 750,541 0.28% 3,069 501,688 1.23% Average earning assets yield (TE) $188,184 $7,408,864 5.11% $167,446 $6,397,788 5.26% Interest-Bearing Liabilities Interest-bearing transaction deposits $5,102 $1,907,968 0.54% $4,052 $1,480,194 0.55% Time deposits 31,847 2,880,682 2.23% 30,230 1,955,770 3.12% Public Funds 5,734 1,224,110 0.94% 11,775 1,437,438 1.65% ---------------------------------- ------------------------------------ Total interest bearing deposits $42,683 $6,012,760 1.43% $46,057 $4,873,402 1.91% Total borrowings 4,985 535,515 1.88% 5,358 555,209 1.95% Total interest bearing liab cost $47,668 $6,548,275 1.47% $51,415 $5,428,611 1.91% Net interest-free funding sources 860,588 969,177 Total Cost of Funds $47,668 $7,408,863 1.30% $51,415 $6,397,788 1.62% Net Interest Spread (TE) $140,516 3.64% $116,031 3.35% Net Interest Margin (TE) $140,516 $7,408,863 3.81% $116,031 $6,397,788 3.64%
Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) (unaudited) 2008 2009 2010 ------------------ ------------------------------------------- ---------------- 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q ------------------ ------------------------------------------- ---------------- Per Common Share Data Earnings per share: Basic $ 0.51 $0.26 $0.44 $0.43 $0.48 $0.89 $0.37 $0.17 Diluted $0.50 $0.26 $0.44 $0.43 $0.47 $0.89 $0.37 $0.17 Cash dividends per share $0.24 $0.24 $0.24 $0.24 $0.24 $0.24 $0.24 $0.24 Book value per share (period-end) $18.95 $19.18 $19.66 $19.82 $20.54 $22.74 $23.05 $23.36 Tangible book value per share (period-end) $16.77 $17.02 $17.51 $17.68 $18.42 $20.60 $20.94 $21.28 Weighted average number of shares: Basic 31,471 31,757 31,805 31,820 31,857 35,481 36,868 36,876 Diluted 31,905 32,059 31,937 32,009 32,058 35,705 37,105 37,078 Period-end number of shares 31,702 31,770 31,813 31,827 31,877 36,840 36,905 36,877 Market data: High sales price $68.42 $56.45 $45.56 $41.19 $42.38 $44.89 $45.86 $43.90 Low sales price $33.34 $34.20 $22.51 $30.12 $29.90 $35.26 $38.23 $33.27 Period end closing price $51.00 $45.46 $31.28 $32.49 $37.57 $43.81 $41.81 $33.36 Trading volume 23,562 18,544 18,026 17,040 11,676 19,538 9,612 12,443 Other Period-end Data FTE headcount 1,941 1,952 1,938 1,911 1,903 2,240 2,263 2,278 Tangible common equity $531,800 $540,859 $557,013 $562,800 $587,161 $758,840 $772,735 $784,872 Tier I capital $546,379 $550,216 $558,502 $565,807 $575,856 $756,106 $764,074 $764,608 Goodwill $62,277 $62,277 $62,277 $62,277 $62,277 $62,277 $62,277 $61,631 Amortizable intangibles $6,402 $6,059 $5,705 $5,350 $4,996 $16,252 $15,521 $14,516 Common shares repurchased for publicly announced plans - 6 - - - - - - Performance Ratios Return on average assets 1.00% 0.48% 0.79% 0.78% 0.87% 1.75% 0.65% 0.31% Return on average common equity 10.90% 5.49% 9.12% 8.67% 9.38% 15.92% 6.58% 3.03% Earning asset yield (TE) 6.02% 5.60% 5.26% 5.26% 5.26% 5.32% 5.15% 5.06% Total cost of funds 2.03% 2.08% 1.75% 1.48% 1.39% 1.35% 1.40% 1.19% Net interest margin (TE) 3.99% 3.51% 3.50% 3.78% 3.86% 3.96% 3.75% 3.87% Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions 62.92% 64.61% 64.93% 61.47% 60.81% 49.82% 66.43% 67.26% Common equity (period-end) as a percent of total assets (period-end) 8.91% 8.50% 8.81% 8.95% 9.62% 9.63% 9.93% 10.13% Leverage (Tier I) ratio 8.66% 8.06% 7.85% 8.13% 8.33% 10.60% 8.91% 9.06% Tangible common equity ratio 7.97% 7.62% 7.92% 8.06% 8.71% 8.81% 9.10% 9.32% Net charge-offs as a percent of average loans 0.42% 1.20% 0.67% 1.50% 1.24% 1.24% 1.06% 1.11% Allowance for loan losses as a percent of period-end loans 1.40% 1.45% 1.49% 1.49% 1.50% 1.29% 1.33% 1.55% Allowance for loan losses to NPAs + loans 90 days past due 189.69% 133.16% 119.72% 117.14% 120.25% 58.69% 48.80% 40.28% Loan/deposit ratio 77.46% 74.58% 72.51% 74.95% 77.36% 77.89% 71.45% 71.63% Noninterest income excluding securities transactions as a percent of total revenue (TE) 34.46% 35.73% 34.00% 36.65% 33.31% 49.86% 31.08% 33.23% --------- --------- ---------- --------- ----------- ----------- ---------- ---------
Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) (unaudited) 2008 2009 2010 ----------------------- -------------------------------------------- -------------------- 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q ----------------------- -------------------------------------------- -------------------- Asset Quality Information Non-accrual loans $21,875 $29,976 $38,327 $34,189 $35,558 $86,555 $92,828 $138,793 Foreclosed assets 2,197 5,360 5,946 8,884 9,775 14,336 30,243 44,901 ----------------------- -------------------------------------------- -------------------- Total non-performing assets $24,072 $35,336 $44,273 $43,073 $45,333 $100,891 $123,071 $183,694 Non-performing assets as a percent of loans and foreclosed assets 0.59% 0.83% 1.04% 1.01% 1.06% 1.97% 2.44% 3.66% Accruing loans 90 days past due $6,082 $11,019 $8,306 $11,435 $7,766 $11,647 $13,457 $8,002 Accruing loans 90 days past due as a percent of loans 0.15% 0.26% 0.20% 0.27% 0.18% 0.23% 0.27% 0.16% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 0.74% 1.09% 1.24% 1.27% 1.25% 2.20% 2.71% 3.82% Net charge-offs $4,164 $12,591 $7,117 $16,019 $13,495 $13,634 $13,251 $13,921 Net charge-offs as a percent of average loans 0.42% 1.20% 0.67% 1.50% 1.24% 1.24% 1.06% 1.11% Allowance for loan losses $57,200 $61,725 $62,950 $63,850 $63,850 $66,050 $66,625 $77,221 Allowance for loan losses as a percent of period-end loans 1.40% 1.45% 1.49% 1.49% 1.50% 1.29% 1.33% 1.55% Allowance for loan losses to NPAs + accruing loans 90 days past due 189.69% 133.16% 119.72% 117.14% 120.25% 58.69% 48.80% 40.28% Provision for loan losses $8,064 $17,116 $8,342 $16,919 $13,495 $15,834 $13,826 $24,517 Net Charge-off Information Net charge-offs: Commercial/real estate loans $1,556 $8,971 $4,536 $12,524 $10,176 $9,110 $10,238 $10,537 Mortgage loans 179 269 177 199 177 1,211 608 569 Direct consumer loans 650 1,039 599 1,226 821 1,209 608 1,241 Indirect consumer loans 867 1,337 847 717 1,169 883 608 449 Finance company loans 912 975 958 1,353 1,152 1,221 1,189 1,125 ----------------------- -------------------------------------------- -------------------- Total net charge-offs $4,164 $12,591 $7,117 $16,019 $13,495 $13,634 $13,251 $13,921 ----------------------- -------------------------------------------- -------------------- Average loans: Commercial/real estate loans $2,453,154 $2,622,357 $2,688,557 $2,696,500 $2,739,518 $2,777,866 $3,145,748 $3,090,655 Mortgage loans 427,752 432,070 445,741 452,324 438,659 470,441 735,279 745,019 Direct consumer loans 546,079 575,826 605,685 596,725 603,394 630,511 737,728 729,083 Indirect consumer loans 410,110 439,780 430,965 420,444 410,035 386,157 359,965 336,260 Finance Company loans 116,140 117,435 114,428 111,358 110,045 110,233 109,819 107,821 ----------------------- -------------------------------------------- -------------------- Total average loans $3,953,235 $4,187,468 $4,285,376 $4,277,351 $4,301,651 $4,375,208 $5,088,539 $5,008,838 Net charge-offs to average loans: Commercial/real estate loans 0.25% 1.36% 0.68% 1.86% 1.47% 1.30% 1.32% 1.37% Mortgage loans 0.17% 0.25% 0.16% 0.18% 0.16% 1.02% 0.34% 0.31% Direct consumer loans 0.47% 0.72% 0.40% 0.82% 0.54% 0.76% 0.33% 0.68% Indirect consumer loans 0.84% 1.21% 0.80% 0.68% 1.13% 0.91% 0.69% 0.54% Finance Company loans 3.12% 3.30% 3.40% 4.87% 4.15% 4.39% 4.39% 4.19% ----------------------- -------------------------------------------- -------------------- Total net charge-offs to average loans 0.42% 1.20% 0.67% 1.50% 1.24% 1.24% 1.06% 1.11%
Hancock Holding Company - Add 17 - Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) (unaudited) 2008 2009 2010 --------------------- -------------------------------------- ------------------- 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q --------------------- -------------------------------------- ------------------- Income Statement Interest income $84,132 $84,801 $81,448 $80,105 $79,758 $82,416 $92,379 $89,741 Interest income (TE) 86,774 87,726 84,392 83,054 82,757 85,585 95,396 92,788 Interest expense 29,357 32,727 28,002 23,413 22,004 21,881 25,800 21,868 --------------------- -------------------------------------- ------------------- Net interest income (TE) 57,417 54,999 56,390 59,641 60,753 63,704 69,596 70,920 Provision for loan losses 8,064 17,116 8,342 16,919 13,495 15,834 13,826 24,517 Noninterest income excluding securities transactions 30,194 30,578 29,055 34,504 30,347 63,353 31,381 35,293 Securities transactions gains/(losses) (79) (1,174) - - 61 7 - - Noninterest expense 55,483 55,637 55,838 58,226 55,749 63,657 67,822 72,122 --------------------- -------------------------------------- ------------------- Income before income taxes 21,343 8,725 18,321 16,051 18,918 44,404 16,312 6,527 Income tax expense 5,338 405 4,290 2,305 3,700 12,624 2,478 27 --------------------- -------------------------------------- ------------------- Net income $16,005 $8,320 $14,031 $13,746 $15,218 $31,780 $13,834 $6,500 ===================== ====================================== =================== Pre-tax, pre-provision income (PTPP) $29,486 $27,015 $26,663 $32,970 $32,352 $63,914 $31,587 $32,762 Noninterest Income and Noninterest Expense Service charges on deposit accounts $11,108 $11,467 $10,503 $11,242 $11,795 $11,814 $11,490 $12,327 Trust fees 4,330 3,777 3,327 3,855 4,008 3,937 3,846 4,408 Debit card & merchant fees 2,805 2,853 2,568 2,895 2,845 2,944 3,596 3,928 Insurance fees 3,819 4,136 3,452 4,048 3,526 3,329 3,511 3,641 Investment & annuity fees 2,421 2,849 2,861 1,691 2,007 1,662 2,279 2,663 ATM fees 1,718 1,690 1,779 1,895 1,862 1,838 1,951 2,321 Secondary mortgage market operations 817 629 1,158 1,827 1,482 1,439 1,640 1,529 Gain on acquisition - - - - - 33,623 - - Other income 3,176 3,177 3,407 7,051 2,822 2,767 3,068 4,476 --------------------- -------------------------------------- ------------------- Noninterest income excluding securities transactions $30,194 $30,578 $29,055 $34,504 $30,347 $63,353 $31,381 $35,293 Securities transactions gains/(losses) (79) (1,174) - - 61 7 - - --------------------- -------------------------------------- ------------------- Total noninterest income including securities transactions $30,115 $29,404 $29,055 $34,504 $30,408 $63,360 $31,381 $35,293 ===================== ====================================== =================== Personnel expense $28,664 $28,447 $30,775 $28,703 $29,113 $32,858 $34,767 $35,379 Occupancy expense (net) 5,188 5,047 5,055 5,016 5,144 5,126 6,143 6,026 Equipment expense 2,711 2,587 2,534 2,583 2,397 2,335 2,724 2,642 Other operating expense 18,560 19,213 17,120 21,570 18,741 22,984 23,450 27,391 Amortization of intangibles 360 343 354 354 354 354 738 684 --------------------- -------------------------------------- ------------------- Total noninterest expense $55,483 $55,637 $55,838 $58,226 $55,749 $63,657 $67,822 $72,122 ===================== ====================================== ===================