SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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 19, 2011
 
 
HANCOCK HOLDING COMPANY
(Exact Name of Registrant as Specified in its Charter)
 
Mississippi
0-13089
64-0693170
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification Number)
 
One Hancock Plaza
2510 14th Street
Gulfport , Mississippi 39501
(Address of principal executive offices)
 
( 228) 868-4000
(Registrant's telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
[x] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 


 
 

 


Item 2.02 Results of Operations and Financial Condition.  On April 19, 2011, Hancock Holding Company issued a press release announcing its first quarter 2011 financial results.  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 April 19, 2011, Hancock Holding Company issued a press release announcing its first quarter 2011 financial results.  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
Hancock Holding Company 1Q 2011 Financial Results


 
 

 


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 hereunder duly authorized.
 
 
Dated:  April 20, 2011                                                               



 
HANCOCK HOLDING COMPANY
 (Registrant)
 
 
By: /s/ Paul D. Guichet                                                                      
Name: Paul D. Guichet
Title:   Vice President
Investor Relations
 





 
 

 







 
For Immediate Release
April 19, 2011

For More Information
Carl J. Chaney, President and Chief Executive Officer
Michael M. Achary, EVP & Chief Financial Officer
Paul D. Guichet, VP, Investor Relations
800.522.6542 or 228.563.6559


Hancock Holding Company announces 1Q 2011 financial results

GULFPORT, Miss.  (April 19, 2011)—Hancock Holding Company (Nasdaq: HBHC) today announced financial results for the quarter ended March 31, 2011.  Net income was $15.3 million, with fully diluted earnings per share of $0.41.  The first quarter’s earnings were impacted by $1.6 million in merger related expenses associated with the proposed acquisition of Whitney Holding Corporation (as discussed below) and also by Hancock’s recent common equity offering (also discussed below).  Excluding the merger related expenses, net income was $16.4 million with fully diluted earnings per share of $0.43.

Excluding merger related items, net income of $16.4 million increased 10.8 percent from 2010’s first quarter’s net income of $14.8 million but declined 3.9 percent over the preceding fourth quarter’s net income of $17.0 million.  Fully diluted earnings per share excluding merger related items for the first quarter of 2011 were $0.43, compared to $0.40 for the same quarter a year ago and $0.46 in the 2010’s fourth quarter.  Hancock’s return on average assets, excluding merger related items, was 0.81 percent for the first quarter of 2011, an improvement of 12 basis points over the prior year period return of average assets of 0.69 percent.

The company’s pre-tax, pre-provision profit for the first quarter of 2011 increased 2.5 percent over the prior year’s first quarter to $32.4 million.  Pre-tax pre-provision profit is total revenue less non-interest expense and excludes one-time merger items and securities transactions.

On December 21, 2010, Hancock Holding Company entered into a definitive agreement with Whitney Holding Corporation (“Whitney”), parent company of New Orleans-based Whitney National Bank, for Whitney to merge into Hancock.  The combined company will have approximately $20 billion in assets and operate more than 300 branches across the Gulf South.  The transaction is expected to be completed in the second quarter of 2011, subject to customary closing conditions and shareholder and regulatory approval.

On March 25, 2011, the company completed a successful common stock offering of 6,201,500 shares of common stock at a price of $32.25 per share, which represented no discount from the last sale on the previous business day.  Net proceeds were approximately $191 million.  The proceeds of the offering are intended to be used for general corporate purposes, including the enhancement of Hancock’s capital position and the repurchase of Whitney’s TARP preferred stock and warrants upon closing of the proposed merger.  The company’s tangible common equity ratio stood at 11.94 percent at March 31, 2011.

       Hancock’s President and Chief Executive Officer Carl J. Chaney said, “We are very pleased to report improvement in our first quarter earnings as we continue to see an upturn in our asset quality measures.  In addition, our stock offering this quarter generated overwhelming interest and was rated the number one equity offering in the U.S. over the past 12 months, in terms of no discount from the last sale on the previous business day.  We believe the response reflected the company’s 110-year history of financial strength and stability and excitement about the pending merger with Whitney which is on track to close in the second quarter of this year. ”

       Chaney continued, “Our operating footprint will grow dramatically in Hancock’s current Gulf Coast markets, and we will expand into dynamic new regions such as Houston and Tampa-St. Petersburg upon completion of the transaction.  Based upon combined assets, Hancock will become the 32nd largest bank holding company headquartered in America.”

 

 
 

 
The principal driver of Hancock’s improved 2011 first quarter earnings from the prior year’s first quarter was the continued improvement in the company’s overall asset quality.  The company recorded a significantly lower provision for loan losses, down $5.0 million, or 36.2 percent, compared to the prior year’s first quarter.  Net charge-offs of $6.8 million decreased $6.4 million, or 48.6 percent, from the 2010 first quarter and decreased $2.9 million, or 30.1 percent, from the prior quarter.  Net charge-offs were 0.57 percent of average loans, down 49 basis points from the first quarter of 2010 and down 21 basis points, compared with the preceding fourth quarter.

       “With our improved asset quality measures, the approaching merger with Whitney, and a favorable economic outlook for our market areas, we are very excited about what the next 12 months will bring.  These events position us very favorably for future growth and prosperity,” Chaney added.

Highlights & Key Operating Items from Hancock’s First Quarter Results

Balance Sheet & Capital

Total assets at March 31, 2011, were $8.3 billion, up $172.7 million, or 2.1 percent, from $8.1 billion at December 31, 2010.  Compared to March 31, 2010, total assets decreased $254.4 million.  Hancock continues to remain well capitalized, with total equity of $1.1 billion at March 31, 2011, up $206.9 million, or 24.3 percent, from March 31, 2010, and up $201.2 million, or 23.5 percent, from December 31, 2010, due to the common stock offering in March of this year.  The company’s tangible common equity ratio stood at 11.94 percent at March 31, 2011.

Loans

       For the quarter ended March 31, 2011, Hancock’s average total loans were $4.9 billion, which represented a decrease of $200.8 million, or 4.0 percent, from the same quarter a year ago and were down $63.8 million, or 1.3 percent, from the fourth quarter of 2010.  Period-end loans decreased $130.6 million, or 2.6 percent, from the prior quarter in all loan categories and declined $185.5 million, or 3.7 percent, from March 31, 2010.  The $185.5 million decrease was driven by a decline in mortgage loans ($88.2 million), indirect consumer loans ($53.2 million), commercial loans ($31.2 million), finance company loans ($12.1 million), and credit card loans ($11.0 million) offset by an increase in direct consumer loans of $14.1 million.  The decrease in average and period-end loans is due primarily to a continued lessening of loan demand in the company’s operating region.

Deposits

Average deposits were up $29.0 million, from the fourth quarter of 2010 but were down 5.2 percent, or $369.7 million, from March 31, 2010.  The reduction in average deposits from the first quarter of 2010 was in time deposits, which were down $582.5 million, or 19.9 percent, and interest bearing and public fund time deposits, which were down $47.5 million, or 3.7 percent, offset by an increase of $134.7 million, or 7.1 percent, in interest-bearing transaction deposits and $125.6 million, or 12.3 percent, in non-interest-bearing deposits.  Period-end deposits for the first quarter were $6.7 billion, down $78.4 million, or 1.2 percent, from the prior quarter and were down $307.4 million, or 4.4 percent, from March 31, 2010.  The $307.4 million reduction in period-end deposits was caused by a $612.9 million, or 21.4 percent, decrease in time deposits offset by a 16.1 percent increase, or $164.5 million, in non-interest-bearing deposits and a 6.2 percent increase, or $120.1 million, in interest-bearing transaction deposits.  The $307.4 million reduction in deposits was primarily related to expected run-off in Peoples First time deposits.  Prior to the December 2009 acquisition of Peoples First, deposit pricing in that institution was very aggressive in order to attract deposits with resulting rates considerably higher than comparable banks.
 
 

 
 

 

Asset Quality

Net charge-offs for 2011’s first quarter were $6.8 million, or 0.57 percent of average loans, down from the $9.8 million, or 0.78 percent, of average loans reported for the fourth quarter of 2010.  Non-performing assets as a percent of total loans and foreclosed assets were 3.32 percent at March 31, 2011, up from 3.17 percent at December 31, 2010.  The total dollar value of non-performing assets was up $3.7 million, or 2.3 percent, between December 31, 2010, and March 31, 2011.  Approximately $19.8 million of loans, of which $10.3 million were on non-accrual status, were designated as troubled debt restructurings (TDR) at March 31, 2011.  Non-accrual loans decreased $11.6 million, while other real estate owned (ORE) increased $8.1 million compared to the prior quarter.  Loans 90 days past due or greater (accruing) as a percent of period-end loans decreased 2 basis points from December 31, 2010, to 0.01 percent at March 31, 2011.
The company’s allowance for loan losses was $94.4 million at March 31, 2011, and $82.0 million at December 31, 2010.  The ratio of the allowance for loan losses as a percent of period-end loans was 1.95 percent at March 31, 2011, compared to 1.65 percent at December 31, 2010.  Hancock’s reserving methodologies required the company to increase the allowance for loan losses in the first quarter.  Hancock recorded a provision for loan losses for the first quarter of $8.8 million.  The provision of $8.3 million on non-covered loans was primarily related to specific credits partially offset by a reduction of $1.5 million in the specific reserve for the Gulf Oil Spill.  Hancock is continuing to monitor the impact of the Gulf Oil Spill on the company’s affected markets.  The company also recorded $10.9 million for losses that have arisen on covered loans since the December 2009 acquisition of Peoples First, with a corresponding increase for 95 percent coverage in the company’s FDIC loss share receivable, which resulted in a net provision increase of $0.5 million in the provision for covered loans.

      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
   
Peoples First
Non-accrual loans
$100,718
   
$56,654
Restructured loans
$19,757
   
$19,757
Foreclosed assets
41,380
   
18,559
Total non-performing assets
$161,855
   
$94,970
Non-performing assets as a percent of loans and foreclosed assets
3.32%
   
2.33%
Accruing loans 90 days past due (a)
$691
   
$691
Accruing loans 90 days past due as a percent of loans
0.01%
   
0.02%
Non-performing assets + accruing loans 90 days past due
       
  to loans and foreclosed assets
3.33%
   
2.34%
Allowance for loan losses
$94,356
   
$83,160
Allowance for loan losses as a percent of period-end loans
1.95%
   
2.05%
Allowance for loan losses to NPAs + accruing loans 90 days past due
58.05%
   
86.93%
         
(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 first quarter increased $0.04 million, or 0.1 percent, from March 31, 2010, and decreased $2.2 million, or 3.0 percent, from the prior quarter.  The net interest margin of 3.97 percent was 22 basis points wider than the same quarter a year ago but was 9 basis points narrower than the prior quarter.  Average earning assets grew $31.2 million compared to prior quarter but declined $399.2 million, or 5.3 percent, compared with the same quarter a year ago.  The $399.2 million decrease was caused by a decrease in loans ($200.8 million), securities ($128.0 million), and short-term investments ($70.4 million).

       The company’s loan yield decreased 27 basis points over the prior year’s first quarter, while the yield on securities decreased 52 basis points, pushing the yield on average earning assets down 28 basis points.  However, total funding costs over the same quarter a year ago were down 50 basis points.  Compared to the prior quarter, the net interest margin (te) was narrower by 9 basis points.  The yield on average earning assets decreased 10 basis points from last quarter to 4.87 percent, while the total cost of funds remained decreased one basis point.

 

 
 

 

Non-interest Income

Non-interest income for the first quarter was up $2.8 million, or 8.9 percent, compared with the same quarter a year ago and decreased $0.9 million, or 2.5 percent, compared with the previous quarter.  The increase from March 31, 2010, was primarily caused by an increase in other income of $3.4 million due to an increase in accretion on the FDIC loss share asset; investment and annuity fees, up $0.9 million; and ATM fees, up $0.8 million offset by decreases in service charges in deposit accounts of $1.9 million due to new consumer regulations and insurance fees of $0.3 million.

The decrease from the prior quarter was caused primarily by a decrease in secondary mortgage market operations of $1.6 million due to a decrease in refinancing; service charges on deposit accounts, down $0.6 million; insurance fees, down $0.5 million offset by an increase in other income of $1.5 million and investment and annuity fees of $0.8 million.

Operating Expense & Taxes

Operating expenses for the first quarter were up $5.2 million, or 7.7 percent, compared to the same quarter a year ago, and were $1.8 million, or 2.5 percent, higher than the previous quarter.  The increase from the same quarter a year ago was reflected in an 8.8 percent increase, or $3.1 million, in higher personnel expense and a 9.2 percent increase, or $2.2 million, in other operating expense due to professional services expenses associated with our proposed merger with Whitney.  The increase from the prior quarter was due to a 5.1 percent increase, or $1.8 million, in personnel due to payout of year-end bonuses.

For the three months ended March 31, 2011, and 2010, the effective income tax rates were approximately 20 percent and 15 percent, respectively.  Because of the increased level of pre-tax income in 2011, the tax-exempt interest income and the utilization of tax credits had less impact on the effective tax rate.  The source of the tax credits for 2011 and 2010 resulted from investments in New Market Tax Credits, Qualified Bond Credits and Work Opportunity Tax Credits.

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 $8.3 billion as of March 31, 2011.  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.

ADDITIONAL INFORMATION ABOUT THE HANCOCK HOLDING COMPANY/WHITNEY HOLDING CORPORATION TRANSACTION

Hancock Holding Company (“Hancock”) and Whitney Holding Corporation (“Whitney”) have filed a joint proxy statement/prospectus and other relevant documents concerning the merger with the United States Securities and Exchange Commission (the “SEC”). This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. WE URGE INVESTORS TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE JOINT PROXY STATEMENT/PROSPECTUS BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors can obtain these documents free of charge at the SEC’s Web site (www.sec.gov). In addition, documents filed with the SEC by Hancock will be available free of charge from Paul D. Guichet, Investor Relations at (228) 563-6559. Documents filed with the SEC by Whitney will be available free of charge from Whitney by contacting Trisha Voltz Carlson at (504) 299-5208.

The directors, executive officers, and certain other members of management and employees of Whitney are participants in the solicitation of proxies in favor of the merger from the shareholders of Whitney. Information about the directors and executive officers of Whitney is included in Whitney’s Form 10-K for the year ended December 31, 2010, as amended by a Form 10-K/A, which was filed with the SEC on April 18, 2010. Additional information regarding the interests of such participants is included in the joint proxy statement/prospectus and the other relevant documents filed with the SEC on April 4, 2011. The directors, executive officers, and certain other members of management and employees of Hancock are participants in the solicitation of proxies in favor of the merger from the shareholders of Hancock. Information about the directors and executive officers of Hancock is included in the proxy statement for its 2011 annual meeting of shareholders, which was filed with the SEC on February 28, 2011. Additional information regarding the interests of such participants is included in the joint proxy statement/prospectus and the other relevant documents filed with the SEC on April 4, 2011.

 
 
 

 



Hancock Holding Company
                 
 Financial Highlights
                 
 (amounts in thousands, except per share data and FTE headcount)
                 
 (unaudited)
                 
   
Three Months Ended
 
   
3/31/2011
   
12/31/2010
   
3/31/2010
 
Per Common Share Data
                 
                   
Earnings per share:
                 
    Basic
  $ 0.41     $ 0.46     $ 0.37  
    Diluted
  $ 0.41     $ 0.46     $ 0.37  
Cash dividends per share
  $ 0.24     $ 0.24     $ 0.24  
Book value per share (period-end)
  $ 24.52     $ 23.22     $ 23.05  
Tangible book value per share (period-end)
  $ 22.79     $ 21.18     $ 20.94  
Weighted average number of shares:
                       
    Basic
    37,333       36,916       36,868  
    Diluted
    37,521       37,065       37,105  
Period-end number of shares
    43,139       36,893       36,905  
Market data:
                       
    High sales price
  $ 35.68     $ 37.26     $ 45.86  
    Low sales price
  $ 30.67     $ 28.88     $ 38.23  
    Period end closing price
  $ 32.84     $ 34.86     $ 41.81  
    Trading volume
    25,942       13,701       9,612  
                         
Other Period-end Data
                       
                         
FTE headcount
    2,299       2,271       2,263  
Tangible common equity
  $ 983,160     $ 781,420     $ 772,735  
Tier I capital
  $ 981,439     $ 782,301     $ 764,074  
Goodwill
  $ 61,631     $ 61,631     $ 62,277  
Amortizable intangibles
  $ 12,908     $ 13,496     $ 15,791  
                         
Performance Ratios
                       
                         
Return on average assets
    0.75%       0.83%       0.65%  
Return on average common equity
    7.07%       7.71%       6.58%  
Earning asset yield (TE)
    4.87%       4.97%       5.15%  
Total cost of funds
    0.90%       0.91%       1.40%  
Net interest margin (TE)
    3.97%       4.06%       3.75%  
Noninterest expense as a percent of total revenue (TE)
                       
    before amortization of purchased intangibles
                       
    and securities transactions
    69.74%       66.05%       66.43%  
Common equity (period-end) as a percent of total assets (period-end)
    12.73%       10.52%       9.93%  
Leverage (Tier I) ratio
    12.02%       9.65%       8.91%  
Tangible common equity ratio
    11.94%       9.69%       9.10%  
Net charge-offs as a percent of average loans
    0.57%       0.78%       1.06%  
Allowance for loan losses as a percent of period-end loans
    1.95%       1.65%       1.33%  
Allowance for loan losses to NPAs + accruing loans 90 days past due
    58.05%       51.35%       48.80%  
Average loan/deposit ratio
    72.38%       73.65%       71.45%  
Non-interest income excluding
                       
    securities transactions as a percent of
                       
    total revenue (TE)
    32.93%       32.81%       31.08%  

 
 

 


Hancock Holding Company
                 
 Financial Highlights
                 
 (amounts in thousands)
                 
 (unaudited)
                 
   
Three Months Ended
 
   
3/31/2011
   
12/31/2010
   
3/31/2010
 
Asset Quality Information
                 
                   
Non-accrual loans
  $ 100,718     $ 112,274     $ 92,828  
Restructured loans (a)
    19,757       12,641       -  
Foreclosed assets
    41,380       33,277       30,243  
Total non-performing assets
  $ 161,855     $ 158,192     $ 123,071  
Non-performing assets as a percent of loans and foreclosed assets
    3.32%       3.17%       2.44%  
Accruing loans 90 days past due (b)
  $ 691     $ 1,492     $ 13,457  
Accruing loans 90 days past due as a percent of loans
    0.01%       0.03%       0.27%  
Non-performing assets + accruing loans 90 days past due
                       
  to loans and foreclosed assets
    3.33%       3.19%       2.71%  
                         
Net charge-offs
  $ 6,817     $ 9,756     $ 13,251  
Net charge-offs as a percent of average loans
    0.57%       0.78%       1.06%  
                         
Allowance for loan losses
  $ 94,356     $ 81,997     $ 66,625  
Allowance for loan losses as a percent of period-end loans
    1.95%       1.65%       1.33%  
Allowance for loan losses to NPAs + accruing loans 90 days past due
    58.05%       51.35%       48.80%  
                         
Provision for loan losses
  $ 8,822     $ 11,390     $ 13,826  
                         
(a) Included in restructured loans is $10.3 million in non-accrual loans.
                       
(b) 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
  $ 81,997     $ 79,725     $ 66,050  
     Provision for loan losses before FDIC benefit
    10,899       672       -  
     Benefit attributable to FDIC loss share agreement
    (10,354 )     (638 )     -  
     Provision for loan losses - non-covered loans
    8,277       11,356       13,826  
Net provision for loan losses
    8,822       11,390       13,826  
Increase in indemnification asset
    10,354       638       -  
Charge-offs
    9,079       11,626       15,160  
Recoveries
    2,262       1,870       1,909  
Net charge-offs
    6,817       9,756       13,251  
Ending Balance
  $ 94,356     $ 81,997     $ 66,625  
                         
                         
Net Charge-off Information
                       
                         
Net charge-offs:
                       
Commercial/real estate loans
  $ 4,159     $ 5,987     $ 10,238  
Mortgage loans
    371       1,024       608  
Direct consumer loans
    1,234       939       608  
Indirect consumer loans
    278       356       608  
Finance Company loans
    775       1,450       1,189  
Total net charge-offs
  $ 6,817     $ 9,756     $ 13,251  
                         
Average loans:
                       
Commercial/real estate loans
  $ 3,099,303     $ 3,087,181     $ 3,145,748  
Mortgage loans
    653,150       702,285       735,279  
Direct consumer loans
    736,133       745,922       737,728  
Indirect consumer loans
    301,638       315,369       359,965  
Finance Company loans
    97,525       100,776       109,819  
Total average loans
  $ 4,887,749     $ 4,951,533     $ 5,088,539  
                         
Net charge-offs to average loans:
                       
Commercial/real estate loans
    0.54%       0.77%       1.32%  
Mortgage loans
    0.23%       0.58%       0.34%  
Direct consumer loans
    0.71%       0.50%       0.33%  
Indirect consumer loans
    0.30%       0.45%       0.69%  
Finance Company loans
    3.22%       5.71%       4.39%  
Total net charge-offs to average loans
    0.57%       0.78%       1.06%  

 
 

 


Hancock Holding Company
             
 
 
 Financial Highlights
                 
 (amounts in thousands)
                 
 (unaudited)
                 
   
Three Months Ended
 
   
3/31/2011
   
12/31/2010
   
3/31/2010
 
Income Statement
                 
                   
Interest income
  $ 82,533     $ 85,040     $ 92,379  
Interest income (TE)
    85,405       87,917       95,396  
Interest expense
    15,769       16,100       25,800  
Net interest income (TE)
    69,636       71,817       69,596  
Provision for loan losses
    8,822       11,390       13,826  
Noninterest income excluding
                       
  securities transactions
    34,183       35,067       31,381  
Securities transactions gains/(losses)
    (51 )     -       0  
Noninterest expense
    73,019       71,257       67,822  
Income before income taxes
    19,055       21,359       16,312  
Income tax expense
    3,727       4,339       2,478  
Net income
  $ 15,328     $ 17,020     $ 13,834  
                         
Pre-tax, pre-provision profit (PTPP) (c)
  $ 32,388     $ 35,627     $ 31,587  
                         
Noninterest Income and Noninterest Expense
                       
                         
Service charges on deposit accounts
  $ 9,544     $ 10,187     $ 11,490  
Trust fees
    3,991       4,324       3,846  
Debit card & merchant fees
    3,510       3,768       3,596  
Insurance fees
    3,249       3,773       3,511  
Investment & annuity fees
    3,133       2,333       2,279  
ATM fees
    2,731       2,574       1,951  
Secondary mortgage market operations
    1,567       3,178       1,640  
Gain on acquisition
    -       -       0  
Other income
    6,457       4,930       3,068  
Noninterest income excluding
                       
  securities transactions
  $ 34,183     $ 35,067     $ 31,381  
Securities transactions gains/(losses)
    (51 )     -       -  
Total noninterest income including
                       
 securities transactions
  $ 34,132     $ 35,067     $ 31,381  
                         
Personnel expense
  $ 37,835     $ 36,006     $ 34,767  
Occupancy expense (net)
    5,911       5,977       6,143  
Equipment expense
    2,854       2,706       2,724  
Other operating expense
    25,805       25,912       23,450  
Amortization of intangibles
    614       656       738  
Total noninterest expense
  $ 73,019     $ 71,257     $ 67,822  
                         
(c) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense, one-time merger items, and securities transactions. Management believes that PTPP profit 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
 
   
3/31/2011
   
12/31/2010
   
3/31/2010
 
Period-end Balance Sheet
                 
                   
Commercial/real estate loans
  $ 3,089,365     $ 3,147,765     $ 3,120,584  
Mortgage loans
    630,092       659,689       718,333  
Direct consumer loans
    733,173       739,262       719,071  
Indirect consumer loans
    292,941       309,454       346,160  
Finance Company loans
    95,404       100,994       107,542  
Total loans
    4,840,975       4,957,164       5,011,690  
Loans held for sale
    7,468       21,866       22,210  
Securities
    1,593,511       1,488,885       1,758,972  
Short-term investments
    759,644       639,163       689,014  
Earning assets
    7,201,598       7,107,078       7,481,886  
Allowance for loan losses
    (94,356 )     (81,997 )     (66,625 )
Other assets
    1,203,792       1,113,246       1,150,219  
Total assets
  $ 8,311,034     $ 8,138,327     $ 8,565,480  
                         
Noninterest bearing deposits
  $ 1,186,852     $ 1,127,246     $ 1,022,372  
Interest bearing transaction deposits
    2,051,805       1,995,081       1,931,749  
Interest bearing Public Fund deposits
    1,208,334       1,216,702       1,187,410  
Time deposits
    2,250,319       2,436,690       2,863,196  
Total interest bearing deposits
    5,510,458       5,648,473       5,982,355  
Total deposits
    6,697,310       6,775,719       7,004,727  
Other borrowed funds
    442,294       388,352       578,777  
Other liabilities
    113,731       117,708       131,173  
Common shareholders' equity
    1,057,699       856,548       850,803  
Total liabilities & common equity
  $ 8,311,034     $ 8,138,327     $ 8,565,480  
                         
Commercial Loans/Real Estate Loans
                       
                         
Commercial non-real estate loans
  $ 546,490     $ 559,301     $ 439,636  
Construction and land development loans
    623,343       652,857       801,474  
Commercial real estate secured loans
    1,408,711       1,413,287       1,360,774  
Municipal loans
    461,401       471,598       459,208  
Lease financing
    49,420       50,721       59,492  
Total commercial/real estate loans
  $ 3,089,365     $ 3,147,764     $ 3,120,584  
                         
Construction and Land Development Loans
                       
                         
Residential construction
  $ 123,997     $ 136,879     $ 109,176  
Commercial owner occupied
    108,909       101,291       172,977  
Commercial non-owner occupied
    86,403       81,503       114,752  
Land development
    154,674       166,434       249,461  
Lots
    149,360       166,750       155,108  
Total construction and land development loans
  $ 623,343     $ 652,857     $ 801,474  
                         
Commercial Real Estate Secured Loans
                       
Commercial real estate owner occupied
  $ 710,528     $ 701,775     $ 691,371  
Commercial real estate non-owner occupied
    698,183       711,512       669,403  
Total commercial real estate secured loans
  $ 1,408,711     $ 1,413,287     $ 1,360,774  

 
 

 


Hancock Holding Company
                 
 Financial Highlights
                 
 (amounts in thousands)
                 
 (unaudited)
                 
   
Three Months Ended
 
   
3/31/2011
   
12/31/2010
   
3/31/2010
 
Average Balance Sheet
                 
                   
Commercial/real estate loans
    3,099,303       3,087,181     $ 3,145,748  
Mortgage loans
    653,150       702,285       735,279  
Direct consumer loans
    736,133       745,922       737,728  
Indirect consumer loans
    301,638       315,369       359,965  
Finance Company loans
    97,525       100,776       109,819  
Total loans
    4,887,749       4,951,533       5,088,539  
Securities
    1,444,872       1,485,732       1,572,883  
Short-term investments
    742,761       606,927       813,122  
Earning average assets
    7,075,382       7,044,192       7,474,544  
Allowance for loan losses
    (82,758 )     (80,248 )     (66,170 )
Other assets
    1,244,747       1,216,267       1,246,022  
Total assets
  $ 8,237,371     $ 8,180,211     $ 8,654,396  
                         
Noninterest bearing deposits
  $ 1,144,469     $ 1,139,094     $ 1,018,863  
Interest bearing transaction deposits
    2,029,706       1,989,250       1,894,997  
Interest bearing Public Fund deposits
    1,227,723       1,088,384       1,275,202  
Time deposits
    2,350,572       2,506,736       2,933,094  
Total interest bearing deposits
    5,608,001       5,584,370       6,103,293  
Total deposits
    6,752,470       6,723,464       7,122,156  
Other borrowed funds
    501,028       465,446       543,307  
Other liabilities
    104,035       115,974       135,814  
Common shareholders' equity
    879,838       875,327       853,119  
Total liabilities & common equity
  $ 8,237,371     $ 8,180,211     $ 8,654,396  

 
 

 


Hancock Holding Company
                 
 Financial Highlights
                 
 (amounts in thousands)
                 
 (unaudited)
                 
   
Three Months Ended
 
   
3/31/2011
   
12/31/2010
   
3/31/2010
 
Average Balance Sheet Mix
                 
                   
Percentage of earning assets/funding sources:
                 
Loans
    69.08%       70.29%       68.008%  
Securities
    20.42%       21.09%       21.04%  
Short-term investments
    10.50%       8.62%       10.88%  
Earning average assets
    100.00%       100.00%       100.00%  
                         
Noninterest bearing deposits
    16.18%       16.17%       13.63%  
Interest bearing transaction deposits
    28.69%       28.24%       25.35%  
Interest bearing Public Fund deposits
    17.35%       15.45%       17.06%  
Time deposits
    33.22%       35.59%       39.24%  
Total deposits
    95.44%       95.45%       95.28%  
Other borrowed funds
    7.08%       6.61%       7.27%  
Other net interest-free funding sources
    -2.52%       -2.06%       -2.55%  
Total average funding sources
    100.00%       100.00%       100.00%  
                         
Loan mix:
                       
Commercial/real estate loans
    63.41%       62.35%       61.82%  
Mortgage loans
    13.36%       14.18%       14.45%  
Direct consumer loans
    15.06%       15.06%       14.50%  
Indirect consumer loans
    6.17%       6.37%       7.07%  
Finance Company loans
    2.00%       2.04%       2.16%  
Total loans
    100.00%       100.00%       100.00%  
                         
Average dollars (in thousands):
                       
Loans
  $ 4,887,749     $ 4,951,533     $ 5,088,539  
Securities
    1,444,872       1,485,732       1,572,883  
Short-term investments
    742,761       606,927       813,122  
Earning average assets
  $ 7,075,382     $ 7,044,192     $ 7,474,544  
                         
Noninterest bearing deposits
  $ 1,144,469     $ 1,139,094     $ 1,018,863  
Interest bearing transaction deposits
    2,029,706       1,989,250       1,894,997  
Interest bearing Public Fund deposits
    1,227,723       1,088,384       1,275,202  
Time deposits
    2,350,572       2,506,736       2,933,094  
Total deposits
    6,752,470       6,723,464       7,122,156  
Other borrowed funds
    501,028       465,446       543,307  
Other net interest-free funding sources
    (178,116 )     (144,718 )     (190,919 )
Total average funding sources
  $ 7,075,382     $ 7,044,192     $ 7,474,544  
                         
Loans:
                       
Commercial/real estate loans
  $ 3,099,303     $ 3,087,181     $ 3,145,748  
Mortgage loans
    653,150       702,285       735,279  
Direct consumer loans
    736,133       745,922       737,728  
Indirect consumer loans
    301,638       315,369       359,965  
Finance Company loans
    97,525       100,776       109,819  
Total average loans
  $ 4,887,749     $ 4,951,533     $ 5,088,539  

 
 

 

Hancock Holding Company
                 
 Financial Highlights
                 
 (amounts in thousands)
                 
 (unaudited)
                 
   
Three Months Ended
 
   
3/31/2011
   
12/31/2010
   
3/31/2010
 
Asset Quality Information
                 
                   
Non-accrual loans
  $ 100,718     $ 112,274     $ 92,828  
Restructured loans
    19,757       12,641       -  
Foreclosed assets
    41,380       33,277       30,243  
Total non-performing assets
  $ 161,855     $ 158,192     $ 123,071  
Non-performing assets as a percent of loans and foreclosed assets
    3.32%       3.17%       2.44%  
Accruing loans 90 days past due
  $ 691     $ 1,492     $ 13,457  
Accruing loans 90 days past due as a percent of loans
    0.01%       0.03%       0.27%  
Non-performing assets + accruing loans 90 days past due
                       
  to loans and foreclosed assets
    3.33%       3.19%       2.71%  
Allowance for loan losses
  $ 94,356     $ 81,997     $ 66,625  
Allowance for loan losses as a percent of period-end loans
    1.95%       1.65%       1.33%  
Allowance for loan losses to NPAs + accruing loans 90 days past due
    58.05%       51.35%       48.80%  
                         
   
3/31/11
 
   
Non-Covered Loans
   
Covered Loans(d)
   
Total
 
Non-accrual loans
  $ 56,654     $ 44,064     $ 100,718  
Restructured loans
    19,757               19,757  
Foreclosed assets
    18,559       22,821       41,380  
Total non-performing assets
  $ 94,970     $ 66,885     $ 161,855  
Non-performing assets as a percent of loans and foreclosed assets
    2.33%       8.34%       3.32%  
Accruing loans 90 days past due
    691       -     $ 691  
Accruing loans 90 days past due as a percent of loans
    0.02%       -       0.01%  
Non-performing assets + accruing loans 90 days past due
                       
  to loans and foreclosed assets
    2.34%       8.34%       3.33%  
Allowance for loan losses
    83,160       11,196       94,356  
Allowance for loan losses as a percent of period-end loans
    2.05%       1.44%       1.95%  
Allowance for loan losses to NPAs + accruing loans 90 days past due
    86.93%       16.74%       58.05%  
                         
(d) Assets covered under the FDIC loss share agreements, which
 
12/31/10
 
provide considerable protection against credit risk.
 
Non-Covered Loans
   
Covered Loans
   
Total
 
Non-accrual loans
  $ 66,988     $ 45,286     $ 112,274  
Restructured loans
    12,641               12,641  
Foreclosed assets
    17,595       15,682       33,277  
Total non-performing assets
  $ 97,224     $ 60,968     $ 158,192  
Non-performing assets as a percent of loans and foreclosed assets
    2.33%       7.39%       3.17%  
Accruing loans 90 days past due
  $ 1,492       -       1,492  
Accruing loans 90 days past due as a percent of loans
    0.04%       -       0.03%  
Non-performing assets + accruing loans 90 days past due
                       
  to loans and foreclosed assets
    2.37%       7.39%       3.19%  
Allowance for loan losses
    81,325       672       81,997  
Allowance for loan losses as a percent of period-end loans
    1.96%       0.08%       1.65%  
Allowance for loan losses to NPAs + accruing loans 90 days past due
    82.38%       1.10%       51.35%  

 
 

 


Hancock Holding Company
                 
 Financial Highlights
                 
 (amounts in thousands)
                 
 (unaudited)
                 
   
Three Months Ended
 
   
3/31/2011
   
12/31/2010
   
3/31/2010
 
Period-end Balance Sheet
                 
                   
Commercial/real estate loans
  $ 3,089,365     $ 3,147,765     $ 3,120,584  
Mortgage loans
    630,092       659,689       718,333  
Direct consumer loans
    733,173       739,262       719,071  
Indirect consumer loans
    292,941       309,454       346,160  
Finance Company loans
    95,404       100,994       107,542  
Total loans
    4,840,975       4,957,164       5,011,690  
                         
   
3/31/11
 
   
Non-Covered Loans
   
Covered Loans(d)
   
Total
 
Commercial/real estate loans
  $ 2,726,698     $ 362,667     $ 3,089,365  
Mortgage loans
    357,793       272,299       630,092  
Direct consumer loans
    588,787       144,386       733,173  
Indirect consumer loans
    292,941       -       292,941  
Finance Company loans
    95,404       -       95,404  
Total loans
  $ 4,061,623     $ 779,352     $ 4,840,975  
                         
   
12/31/10
 
   
Non-Covered Loans
   
Covered Loans
   
Total
 
Commercial/real estate loans
  $ 2,773,434     $ 374,331     $ 3,147,765  
Mortgage loans
    366,184       293,505       659,689  
Direct consumer loans
    597,947       141,315       739,262  
Indirect consumer loans
    309,454       -       309,454  
Finance Company loans
    100,994       -       100,994  
Total loans
  $ 4,148,013     $ 809,151     $ 4,957,164  
                         
(d) 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  
   
03/31/11
   
12/31/10
   
03/31/10
 
   
Interest
   
Volume
   
Rate
   
Interest
   
Volume
   
Rate
   
Interest
   
Volume
   
Rate
 
                                                       
Average Earning Assets
                                                     
Commercial & real
  estate loans (TE)
  $ 40,267     $ 3,099,303       5.26%     $ 40,945     $ 3,087,181       5.27%     $ 42,603     $ 3,145,748       5.48%  
Mortgage loans
    10,824       653,150       6.63%       10,789       702,285       6.14%       12,217       735,279       6.6%5  
Consumer loans
    19,175       1,135,296       6.70%       20,532       1,162,067       7.01%       21,491       1,207,512       7.22%  
Loan fees & late
  charges
    (59 )     -       0.00%       26       -       0.00%       228       -       0.00%  
  Total loans (TE)
  $ 70,207     $ 4,887,749       5.81%     $ 72,292     $ 4,951,533       5.80%     $ 76,539       5,088,539       6.08%  
                                                                         
US treasury
  securities
    12       10,798       0.47%       14       10,799       0.50%       15       11,838       0.50%  
US agency
  securities
    771       172,116       1.79%       444       106,129       1.67%       1,387       163,132       3.40%  
CMOs
    3,018       351,224       3.44%       2,962       378,455       3.13%       2,063       168,129       4.91%  
Mortgage backed
  securities
    8,172       713,783       4.58%       8,939       788,474       4.53%       12,051       1,022,288       4.72%  
Municipals (TE)
    2,678       178,904       5.99%       2,734       183,833       5.95%       2,491       192,447       5.18%  
Other securities
    248       18,047       5.50%       204       18,043       4.51%       261       15,049       6.94%  
  Total securities
    (TE)
    14,899       1,444,872       4.12%       15,297       1,485,733       4.12%       18,268       1,572,883       4.65%  
                                                                         
  Total short-term
    investments
    299       742,761       0.16%       329       606,927       0.22%       589       813,122       0.29%  
                                                                         
  Average earning
  assets yield (TE)
  $ 85,405     $ 7,075,382       4.87%     $ 87,918     $ 7,044,193       4.97%     $ 95,396     $ 7,474,544       5.15%  
                                                                         
Interest-bearing Liabilities
                                                                       
Interest-bearing
  transaction
  deposits
  $ 1,596     $ 2,029,706       0.32%     $ 1,889     $ 1,989,250       0.38%     $ 2,503     $ 1,894,997       0.54%  
Time deposits
    10,821       2,350,572       1.87%       10,403       2,506,736       1.65%       17,537       2,933,094       2.42%  
Public Funds
    1,593       1,227,723       0.53%       1,780       1,088,384       0.65%       3,243       1,275,202       1.03%  
   Total interest
    bearing
    deposits
  $ 14,010       5,608,001       1.01%     $ 14,072       5,584,370       1.00%     $ 23,283       6,103,293       1.55%  
                                                                         
  Total
    borrowings
    1,759       501,028       1.42%       2,028       465,446       1.73%       2,517       543,307       1.88%  
                                                                         
  Total interest
    bearing liab
    cost
  $ 15,769     $ 6,109,029       1.05%     $ 16,100     $ 6,049,816       1.06%     $ 25,800     $ 6,646,600       1.57%  
                                                                         
Net interest-free
  funding sources
            966,353                       994,376                       827,944          
Other net
  interest-free
  funding sources
                                                                       
                                                                         
Total Cost of
  Funds
  $ 15,769     $ 7,075,382       0.90%     $ 16,100     $ 7,044,192       0.91%     $ 25,800     $ 7,474,544       1.40%  
                                                                         
Net Interest
  Spread (TE)
  $ 69,636               3.82%     $ 71,818               3.91%     $ 69,596               3.57%  
                                                                         
Net Interest
  Margin (TE)
  $ 69,636     $ 7,075,382       3.97%     $ 71,818     $ 7,044,192       4.06%     $ 69,596     $ 7,474,544       3.75%  

 
 

 

Hancock Holding Company
 Quarterly Financial Data
 (amounts in thousands, except
per share data and FTE headcount)
 (unaudited)
 
2009
   
2010
   
2011
 
      2Q       3Q       4Q       1Q       2Q       3Q       4Q       1Q  
Per Common Share Data
                                                               
                                                                 
Earnings per share:
                                                               
    Basic
  $ 0.43     $ 0.48     $ 0.89     $ 0.37     $ 0.17     $ 0.40     $ 0.46     $ 0.41  
    Diluted
  $ 0.43     $ 0.47     $ 0.89     $ 0.37     $ 0.17     $ 0.40     $ 0.46     $ 0.41  
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)
  $ 19.82     $ 20.54     $ 22.74     $ 23.05     $ 23.36     $ 23.48     $ 23.22     $ 24.52  
Tangible book value per share
   (period-end)
  $ 17.68     $ 18.42     $ 20.60     $ 20.94     $ 21.28     $ 21.42     $ 21.18     $ 22.79  
Weighted average number of shares:
                                                               
    Basic
    31,820       31,857       35,481       36,868       36,876       36,880       36,916       37,333  
    Diluted
    32,009       32,058       35,705       37,105       37,078       36,995       37,065       37,521  
Period-end number of shares
    31,827       31,877       36,840       36,905       36,877       36,883       36,893       43,139  
Market data:
                                                               
    High sales price
  $ 41.19     $ 42.38     $ 44.89     $ 45.86     $ 43.90     $ 35.40     $ 37.26     $ 35.68  
    Low sales price
  $ 30.12     $ 29.90     $ 35.26     $ 38.23     $ 33.27     $ 26.82     $ 28.88     $ 30.67  
    Period end closing price
  $ 32.49     $ 37.57     $ 43.81     $ 41.81     $ 33.36     $ 30.07     $ 34.86     $ 32.84  
    Trading volume
    17,040       11,676       19,538       9,612       12,443       14,318       13,701       25,942  
                                                                 
Other Period-end Data
                                                               
                                                                 
FTE headcount
    1,911       1,903       2,240       2,263       2,278       2,235       2,271       2,299  
Tangible common equity
  $ 562,800     $ 587,161     $ 758,840     $ 772,735     $ 784,872     $ 790,040     $ 781,420     $ 983,160  
Tier I capital
  $ 565,807     $ 575,856     $ 756,106     $ 764,074     $ 764,608     $ 772,247     $ 782,301     $ 981,439  
Goodwill
  $ 62,277     $ 62,277     $ 62,277     $ 62,277     $ 61,631     $ 61,631     $ 61,631     $ 61,631  
Amortizable intangibles
  $ 5,350     $ 4,996     $ 16,252     $ 15,791     $ 14,516     $ 13,860     $ 13,496     $ 12,908  
                                                                 
Performance Ratios
                                                               
                                                                 
Return on average assets
    0.78%       0.87%       1.75%       0.65%       0.31%       0.70%       0.83%       0.75%  
Return on average common equity
    8.67%       9.38%       15.92%       6.58%       3.03%       6.75%       7.71%       7.07%  
Earning asset yield (TE)
    5.26%       5.26%       5.32%       5.15%       5.06%       4.87%       4.97%       4.87%  
Total cost of funds
    1.48%       1.39%       1.35%       1.40%       1.19%       1.02%       0.91%       0.90%  
Net interest margin (TE)
    3.78%       3.86%       3.96%       3.75%       3.87%       3.85%       4.06%       3.97%  
Noninterest expense as a percent
                                                               
  of total revenue (TE) before
  amortization of purchased
                                                               
  intangibles and securities
                                                               
  transactions
    61.47%       60.81%       49.82%       66.43%       67.26%       64.25%       66.05%       69.74%  
Common equity (period-end) as
                                                               
  a percent of total assets
  (period-end)
    8.95%       9.62%       9.63%       9.93%       10.13%       10.51%       10.52%       12.73%  
Leverage (Tier I) ratio
    8.13%       8.33%       10.60%       8.91%       9.06%       9.32%       9.65%       12.02%  
Tangible common equity ratio
    8.06%       8.71%       8.81%       9.10%       9.32%       9.68%       9.69%       11.94%  
Net charge-offs as a
                                                               
  percent of average loans
    1.50%       1.24%       1.24%       1.06%       1.11%       1.10%       0.78%       0.57%  
Allowance for loan losses as
                                                               
  a percent of period-end loans
    1.49%       1.50%       1.29%       1.33%       1.55%       1.62%       1.65%       1.95%  
Allowance for loan losses to
                                                               
  NPAs + loans 90 days past due
    117.14%       120.25%       58.69%       48.80%       38.03%       43.63%       51.35%       58.05%  
Loan/deposit ratio
    74.95%       77.36%       77.89%       71.45%       71.63%       72.78%       73.65%       72.38%  
Noninterest income excluding
                                                               
  securities transactions as a percent
                                                               
  of total revenue (TE)
    36.65%       33.31%       49.86%       31.08%       33.23%       33.56%       32.81%       32.93%  

 
 

 


Hancock Holding Company
 Quarterly Financial Data
 (amounts in thousands, except
per share data and FTE headcount)
 (unaudited)
 
2009
   
2010
   
2011
 
      2Q       3Q       4Q       1Q       2Q       3Q       4Q       1Q  
Asset Quality Information
                                                               
                                                                 
Non-accrual loans
  $ 34,189     $ 35,558     $ 86,555     $ 92,828     $ 150,127     $ 132,834     $ 112,274     $ 100,718  
Restructured loans
    -       -       -       -       -       10,740       12,641       19,757  
Foreclosed assets
    8,884       9,775       14,336       30,243       44,901       31,879       33,277       41,380  
Total non-performing assets
  $ 43,073     $ 45,333     $ 100,891     $ 123,071     $ 195,028     $ 175,453     $ 158,192     $ 161,855  
Non-performing assets as a percent
  of loans and foreclosed assets
    1.01%        1.06%        1.97%        2.44%        3.89%        3.55%        3.17%        3.32%   
                                                                 
Accruing loans 90 days past due
  $ 11,435     $ 7,766     $ 11,647     $ 13,457     $ 8,002     $ 7,292     $ 1,492     $ 691  
Accruing loans 90 days past due as
                                                               
  a percent of loans
    0.27%       0.18%       0.23%       0.27%       0.16%       0.15%       0.03%       0.01%  
Non-performing assets + accruing
                                                               
  loans 90 days past due to loans
                                                               
  and foreclosed assets
    1.27%       1.25%       2.19%       2.71%       4.05%       3.70%       3.19%       3.33%  
                                                                 
Net charge-offs
  $ 16,019     $ 13,495     $ 13,634     $ 13,251     $ 13,921     $ 13,754     $ 9,756     $ 6,817  
Net charge-offs as a percent
                                                               
  of average loans
    1.50%       1.24%       1.24%       1.06%       1.11%       1.10%       0.78%       0.57%  
                                                                 
Allowance for loan losses
  $ 63,850     $ 63,850     $ 66,050     $ 66,625     $ 77,221     $ 79,725     $ 81,997     $ 94,356  
Allowance for loan losses as a
                                                               
  percent of period-end loans
    1.49%       1.50%       1.29%       1.33%       1.55%       1.62%       1.65%       1.95%  
Allowance for loan losses to NPAs
                                                               
  + accruing loans 90 days past due
    117.14%       120.25%       58.69%       48.80%       38.03%       43.63%       51.35%       58.05%  
                                                                 
Provision for loan losses
  $ 16,919     $ 13,495     $ 15,834     $ 13,826     $ 24,517     $ 16,258     $ 11,390     $ 8,822  
                                                                 
Net Charge-off Information
                                                               
                                                                 
Net charge-offs:
                                                               
Commercial/real estate loans
  $ 12,524     $ 10,176     $ 9,110     $ 10,238     $ 10,537     $ 9,140     $ 5,987     $ 4,159  
Mortgage loans
    199       177       1,211       608       569       1,674       1,024       371  
Direct consumer loans
    1,226       821       1,209       608       1,241       1,003       939       1,234  
Indirect consumer loans
    717       1,169       883       608       449       569       356       278  
Finance company loans
    1,353       1,152       1,221       1,189       1,125       1,368       1,450       775  
Total net charge-offs
  $ 16,019     $ 13,495     $ 13,634     $ 13,251     $ 13,921     $ 13,754     $ 9,756     $ 6,817  
                                                                 
Average loans:
                                                               
Commercial/real estate loans
  $ 2,696,500     $ 2,739,518     $ 2,777,866     $ 3,145,748     $ 3,090,938     $ 3,056,578     $ 3,087,181     $ 3,099,303  
Mortgage loans
    452,324       438,659       470,441       735,279       744,880       753,686       702,285       653,150  
Direct consumer loans
    596,725       603,394       630,511       737,728       728,939       738,036       745,922       736,133  
Indirect consumer loans
    420,444       410,035       386,157       359,965       336,260       324,337       315,369       301,638  
Finance Company loans
    111,358       110,045       110,233       109,819       107,821       103,297       100,776       97,525  
Total average loans
  $ 4,277,351     $ 4,301,651     $ 4,375,208     $ 5,088,539     $ 5,008,838     $ 4,975,934     $ 4,951,533     $ 4,887,749  
                                                                 
Net charge-offs to average loans:
                                                               
Commercial/real estate loans
    1.86%       1.47%       1.30%       1.32%       1.37%       1.19%       0.77%       0.54%  
Mortgage loans
    0.18%       0.16%       1.02%       0.34%       0.31%       0.88%       0.58%       0.23%  
Direct consumer loans
    0.82%       0.54%       0.76%       0.33%       0.68%       0.54%       0.50%       0.71%  
Indirect consumer loans
    0.68%       1.13%       0.91%       0.69%       0.54%       0.70%       0.45%       0.30%  
Finance Company loans
    4.87%       4.15%       4.39%       4.39%       4.19%       5.25%       5.71%       3.22%  
Total net charge-offs to average
  loans
    1.50%       1.24%       1.24%       1.06%       1.11%       1.10%       0.78%       0.57%  

 
 

 

Hancock Holding Company
 Quarterly Financial Data
 (amounts in thousands, except
per share data and FTE headcount)
 (unaudited)
 
2009
   
2010
   
2011
 
      2Q       3Q       4Q       1Q       2Q       3Q       4Q       1Q  
Income Statement
                                                               
                                                                 
Interest income
  $ 80,105     $ 79,758     $ 82,416     $ 92,379     $ 89,741     $ 85,398     $ 85,040     $ 82,533  
Interest income (TE)
    83,054       82,757       85,585       95,396       92,788       88,284       87,917       85,405  
Interest expense
    23,413       22,004       21,881       25,800       21,868       18,576       16,100       15,769  
Net interest income (TE)
    59,641       60,753       63,704       69,596       70,920       69,708       71,817       69,636  
Provision for loan losses
    16,919       13,495       15,834       0       24,517       16,258       11,390       8,822  
Noninterest income excluding
                                                               
  securities transactions
    34,504       30,347       63,353       31,381       35,293       35,208       35,067       34,183  
Securities transactions gains/
  (losses)
    -       61       7       -       -       -       -       (51 )
Noninterest expense
    58,226       55,749       63,657       67,822       72,122       68,060       71,257       73,019  
Income before income taxes
    16,051       18,918       44,404       30,138       6,527       17,712       21,359       19,055  
Income tax expense
    2,305       3,700       12,624       2,478       27       2,859       4,339       3,727  
Net income
  $ 13,746     $ 15,218     $ 31,780     $ 27,660     $ 6,500     $ 14,853     $ 17,020     $ 15,328  
                                                                 
Pre-tax, pre-provision profit (PTPP)
  $ 32,970     $ 32,352     $ 33,483     $ 31,587     $ 32,762     $ 36,856     $ 35,627     $ 32,388  
                                                                 
                                                                 
                                                                 
Noninterest Income
                                                               
  and Noninterest Expense
                                                               
                                                                 
Service charges on deposit accounts
  $ 11,242     $ 11,795     $ 11,814     $ 11,490     $ 12,327     $ 11,331     $ 10,187     $ 9,544  
Trust fees
    3,855       4,008       3,937       3,846       4,408       4,138       4,324       3,991  
Debit card & merchant fees
    2,895       2,845       2,944       3,596       3,928       3,649       3,768       3,510  
Insurance fees
    4,048       3,526       3,329       3,511       3,641       3,535       3,773       3,249  
Investment & annuity fees
    1,691       2,007       1,662       2,279       2,663       2,906       2,333       3,133  
ATM fees
    1,895       1,862       1,838       1,951       2,321       2,640       2,574       2,731  
Secondary mortgage market
  operations
    1,827       1,482       1,439       1,640       1,529       2,569       3,178       1,567  
Gain on acquisition
    -       -       33,623       0       -       -       -       -  
Other income
    7,051       2,822       2,767       3,068       4,476       4,440       4,930       6,457  
Noninterest income excluding
                                                               
  securities transactions
  $ 34,504     $ 30,347     $ 63,353     $ 31,381     $ 35,293     $ 35,208     $ 35,067     $ 34,183  
Securities transactions gains/
  (losses)
    -       61       7       -       -       -       -       (51 )
Total noninterest income including
                                                               
  securities transactions
  $ 34,504     $ 30,408     $ 63,360     $ 31,381     $ 35,293     $ 35,208     $ 35,067     $ 34,132  
                                                                 
Personnel expense
  $ 28,703     $ 29,113     $ 32,858     $ 34,767     $ 35,379     $ 35,890     $ 36,006     $ 37,835  
Occupancy expense (net)
    5,016       5,144       5,126       6,143       6,026       5,657       5,977       5,911  
Equipment expense
    2,583       2,397       2,335       2,724       2,642       2,496       2,706       2,854  
Other operating expense
    21,570       18,741       22,984       23,450       27,391       23,361       25,912       25,805  
Amortization of intangibles
    354       354       354       738       684       656       656       614  
Total noninterest expense
  $ 58,226     $ 55,749     $ 63,657     $ 67,822     $ 72,122     $ 68,060     $ 71,257     $ 73,019