Exhibit 99.1

 

January 17, 2018

Trisha Voltz Carlson

EVP, Investor Relations Manager

504.299.5208

trisha.carlson@hancockwhitney.com

---

Hancock reports fourth quarter 2017 EPS of $.64

Results include $19.5 million, or $.22 per share, impact from tax reform re-measurement charge

GULFPORT, Miss. (January 17, 2018) — Hancock Holding Company (Nasdaq: HBHC) today announced its financial results for the fourth quarter of 2017. Net income for the fourth quarter of 2017 was $55.4 million, or $.64 per diluted common share (EPS), compared to $58.9 million, or $.68 EPS in the third quarter of 2017 and $51.8 million, or $.64 EPS, in the fourth quarter of 2016. The fourth quarter of 2017 includes an estimated $19.5 million ($.22 per share impact) tax reform related re-measurement charge of the net deferred tax asset (DTA), while the third quarter of 2017 included $11.4 million of nonoperating items ($.08 per share) mainly related to the two previously disclosed FNBC transactions. There were no nonoperating items in the fourth quarter of 2016.

●	Reported earnings decreased $3.5 million, or 6%; excluding the impact of the DTA re-measurement charge and nonoperating items, earnings increased $8.7 million, or 13%

●	The fourth quarter includes an estimated $19.5 million charge related to the re-measurement of the net deferred tax asset

●	Loans increased $218 million, or 5% linked-quarter annualized; net increase includes a decline in energy loans of $78 million linked-quarter

●	Energy loans totaled $1.1 billion at year-end and comprised 5.6% of total loans, down from 6.0%; allowance for the energy portfolio totaled $70.2 million, or 6.7% of energy loans

●	Core pre-provision net revenue (PPNR) of $116.5 million, up $5.4 million, or 5%; up 34% from the same quarter a year ago

●	Net interest margin (NIM) of 3.48%, up 4 bps; core NIM up 3 bps to 3.35%

●	Operating expenses totaled $168.1 million, up 1% linked-quarter

●	Efficiency ratio improved almost 100 bps to 56.6%

●	Return on average assets (ROA) declined 6 bps to 0.82%; excluding nonoperating items and the DTA charge, ROA increased 11 bps to 1.10%

●	Tangible common equity (TCE) ratio decreased 7 bps to 7.73% mainly related to the DTA re-measurement charge

"We are extremely proud of a notable quarter to finish a strong year of improving performance," said John M. Hairston, President and CEO. "Our team delivered impressive operating earnings that reflected a ROA of 1.10%, efficiency ratio at 56.6%, ROTCE of 14.62% and EPS up 13% linked-quarter. With early achievement of our Corporate Strategic Objectives, we end 2017 on a positive note and enter the new year with

 

 

opportunities to continue building upon that success. Our "next day" begins with a recently announced wealth management transaction, the combination of our two iconic brands, and a tax reform act likely to benefit all clients and shareholders. These are just a few of the items we have on our plate to start 2018, and we look forward to continuing improvement as we work hard to achieve our updated CSOs. I particularly want to commend our 4,000 team members who worked relentlessly to produce a 2017 we can all be proud of."

Loans

Total loans at December 31, 2017 were $19.0 billion, up approximately $218 million, or 1%, linked-quarter. Loans to energy-related companies decreased $78 million during the fourth quarter. Net loan growth during the quarter continues to be diversified across the footprint and also in areas identified as part of the company's revenue-generating initiatives.

Average loans totaled $18.8 billion for the fourth quarter of 2017, up $248 million, or 1%, linked-quarter.

Energy

At December 31, 2017, loans to the energy industry totaled $1.1 billion, or 5.6% of total loans. As noted earlier, the energy portfolio was down $78 million, or 7%, linked-quarter, and is comprised of credits to both the exploration and production (E&P) sector and the support and services sectors. Payoffs and paydowns of approximately $133 million and charge-offs of approximately $8 million were partially offset by approximately $63 million in fundings.

The impact and severity of future risk rating migration, as well as any associated provisions or net charge-offs, will depend on overall oil prices and the duration of the energy cycle that began in November 2014. Recent higher oil prices are helpful in the recovery of credits impacted by the energy cycle, however the key to resolution of many of those credits, especially in support services, is stabilization of prices over the longer term.

Management continues to estimate that net charge-offs from energy-related credits could approximate up to $95 million over the duration of the cycle, of which approximately $76 million has been taken to-date. While we expect additional charge-offs in the portfolio, we continue to believe the impact of the energy cycle on our loan portfolio will be manageable, our reserve is adequate and our capital will remain solid.

Deposits

Total deposits at December 31, 2017 were $22.3 billion, up $719 million, or 3%, from September 30, 2017. The increase is mainly related to annual year-end seasonality of public fund deposits.

Noninterest-bearing demand deposits (DDAs) totaled $8.3 billion at December 31, 2017, up $411 million, or 5%, from September 30, 2017. DDAs comprised 37% of total period-end deposits at December 31, 2017.

Interest-bearing transaction and savings deposits totaled $8.2 billion at the end of the fourth quarter of 2017, up $288 million, or 4%, from September 30, 2017. Time deposits of $2.7 billion were down $258 million, or 9%, while interest-bearing public fund deposits increased $278 million, or 10%, to $3.0 billion at December 31, 2017.

Average deposits for the fourth quarter of 2017 were $21.8 billion, up $413 million, or 2%, linked-quarter.

 

Asset Quality

Nonperforming assets (NPAs) totaled $401 million at December 31, 2017, up $13.2 million from September 30, 2017. During the fourth quarter of 2017, total nonperforming loans increased approximately $6.9 million, while foreclosed and surplus real estate (ORE) and other foreclosed assets increased approximately $6.3 million. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 2.11% at December 31, 2017, up 5 bps from September 30, 2017.

The total allowance for loan losses (ALLL) was $217.3 million at December 31, 2017, down $5.8 million from September 30, 2017. The ratio of the allowance for loan losses to period-end loans was 1.14% at December 31, 2017, down 5 bps from 1.19% at September 30, 2017. The allowance for credits in the energy portfolio totaled $70.2 million, or 6.7% of energy loans, at December 31, 2017, as compared to $79.8 million, or 7.0% of energy loans, at September 30, 2017.

Net charge-offs were $21.0 million, or 0.44% of average total loans on an annualized basis in the fourth quarter of 2017, up from $11.8 million, or 0.25% of average total loans in the third quarter of 2017. There were approximately $8.4 million of net charge-offs related to energy credits in the fourth quarter of 2017.

During the fourth quarter of 2017, Hancock recorded a total provision for loan losses of $15.0 million, up from $13.0 million in the third quarter of 2017.

Net Interest Income and Net Interest Margin (NIM)
Net interest income (TE) for the fourth quarter of 2017 was $217.0 million, up $5.5 million from the third quarter of 2017. The increase reflects both a change in the mix of earning assets and growth in earning assets, an increase in the loan yield of 7 bps and a 2 bp increase in the yield on the securities portfolio. These improvements were partially offset by a 2 bp increase in the cost of funds related to higher rates paid on time deposits and public fund deposits.

Average earning assets were $24.8 billion for the fourth quarter of 2017, up $325 million, or 1%, from the third quarter of 2017. The reported net interest margin (TE) was 3.48% for the fourth quarter of 2017, up 4 bps from the third quarter of 2017.

Noninterest Income

Noninterest income totaled $69.7 million for the fourth quarter of 2017, up $2.6 million, or 4%, from the third quarter of 2017.

Service charges on deposits totaled $22.5 million for the fourth quarter of 2017, up $1.0 million, or 5%, from the third quarter of 2017. Bank card and ATM fees totaled $14.2 million, up $0.8 million, or 6%, from the third quarter of 2017.

Trust fees totaled $11.1 million, up $0.3 million, or 3% linked-quarter. Investment and annuity income and insurance fees totaled $5.8 million, down $0.4 million, or 7%, linked-quarter.

Fees from secondary mortgage operations totaled $3.2 million for the fourth quarter of 2017, down $0.9 million, or 22%, linked-quarter.

Other noninterest income totaled $12.9 million, up $1.8 million, or 16%, from the third quarter of 2017. The increase is mainly related to a gain from the bulk sale of loans from the Peoples First acquisition, partially offset by several smaller miscellaneous items.

 

Noninterest Expense & Taxes
Noninterest expense for the fourth quarter of 2017 totaled $168.1 million, down $9.6 million, or 5%, from the third quarter of 2017. Included in the third quarter's total are $11.4 million of nonoperating expenses mainly related to costs associated with the FNBC transactions. Excluding these items, operating expenses were up $1.8 million, or 1%, linked-quarter.

Total personnel expense was $95.2 million in the fourth quarter of 2017, up $2.5 million, or 3%, from the third quarter of 2017. The increase is mainly related to performance-based incentive pay.

Occupancy and equipment expense totaled $15.0 million in the fourth quarter of 2017, down $0.8 million, or 5%, from the third quarter of 2017.

Amortization of intangibles totaled $5.9 million for the fourth quarter of 2017, down $0.2 million or 3% linked-quarter. Net gains on ORE dispositions exceeded ORE expense by $0.3 million in the fourth quarter of 2017. The third quarter reflects a more normal level of ORE expense at $0.2 million.

Other operating expense totaled $52.4 million in the fourth quarter of 2017, up $0.8 million, or 2%, from the third quarter of 2017.

The effective income tax rate for the fourth quarter of 2017 was 21% (excludes the DTA re-measurement charge). The lower rate in the fourth quarter was related to the tax benefit of a stock compensation deduction in excess of book expense. Management expects the tax rate beginning in 2018 to approximate 16-18% mainly as a result of the tax reform act. The effective income tax rate continues to be less than the statutory rate due primarily to tax-exempt income and tax credits.

Capital

Common shareholders' equity at December 31, 2017 totaled $2.9 billion. The tangible common equity (TCE) ratio was 7.73%, down 7 bps from September 30, 2017. The decrease is mainly related to the re-measurement charge of the DTA related to tax reform. Additional capital ratios are included in the financial tables.

Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 9:00 a.m. Central Time on Thursday, January 18, 2018 to review the results. A live listen-only webcast of the call will be available under the Investor Relations section of Hancock's website at www.hancockwhitney.com/investors. A link to the release with additional financial tables, and a link to a slide presentation related to fourth quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial (877) 564-1219 or (973) 638-3429. An audio archive of the conference call will be available under the Investor Relations section of our website. A replay of the call will also be available through January 25, 2018 by dialing (855) 859-2056 or (404) 537-3406, passcode 9496765.

About Hancock Holding Company

Hancock Holding Company is a financial services company with regional business headquarters and locations across the Gulf South. The company's banking subsidiary provides comprehensive financial products and services through Hancock Bank locations in Mississippi, Alabama, and Florida and Whitney Bank locations in Louisiana and Texas, including traditional, online, and mobile banking; commercial and

 

 

 small business banking; private banking; trust and investment services; certain insurance services; and mortgage services. More information is available at www.hancockwhitney.com.

Non-GAAP Financial Measures

This news release includes non-GAAP financial measures to describe Hancock's performance. The reconciliations of those measures to GAAP measures are provided within Appendix A on page 17 of the additional financial tables.

In this news release, consistent with Securities and Exchange Commission Industry Guide 3, the company presents net interest income, net interest margin and efficiency ratios on a fully taxable equivalent ("TE") basis. The TE basis adjusts for the tax-favored status of net interest income from certain loans and investments using a federal tax rate of 35% to increase tax-exempt interest income to a taxable-equivalent basis. The company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.

Over the past several quarters we have disclosed our focus on strategic initiatives that were designed to replace declining levels of income from purchase accounting adjustments from acquisitions with improvement in core income, which the company defines as income excluding net purchase accounting adjustments. The company presents core income non-GAAP measures including core net interest income and core net interest margin, core revenue and core pre-provision net revenue. These measures are provided to assist the reader with a better understanding of the company's performance period over period as well as providing investors with assistance in understanding the success management has experienced in executing its strategic initiatives.

We define Core Net Interest Income as net interest income (TE) excluding net purchase accounting accretion resulting from the fair market value adjustments related to acquired operations. We define Core Net Interest Margin as reported core net interest income expressed as a percentage of average earning assets. A reconciliation of reported net interest income to core net interest income and reported net interest margin to core net interest margin is included in Appendix A.

We define Core Revenue as core net interest income and noninterest income less the amortization of the FDIC loss share receivable related to loans acquired in an FDIC assisted transaction and other nonoperating revenue. A reconciliation of total revenue to core revenue is included in Appendix A.

We define Core Pre-Provision Net Revenue as core revenue less noninterest expense, excluding nonoperating items and intangible asset amortization. Management believes that core pre-provision net revenue 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. A reconciliation of net income to core pre-provision net revenue is included in Appendix A.

Important Cautionary Statement About Forward-Looking Statements
This news release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Forward- looking statements that we may make include statements regarding balance sheet and revenue growth, the provision for loans losses, loan growth expectations, management's predictions about charge-offs for loans, including energy-related credits, the impact of changes in oil and gas prices on our energy portfolio, and the downstream impact on businesses that support the energy sector, especially in the Gulf Coast region, the impact of the transactions with First NBC and Capital One on our performance and financial

 

 

condition, including our ability to successfully integrate the businesses, deposit trends, credit quality trends, net interest margin trends, future expense levels, success of revenue-generating initiatives, projected tax rates, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts such as accretion levels, the impact of tax reform and the financial impact of regulatory requirements. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words "believes," "expects," "anticipates," "estimates," "intends," "plans," "forecast," "goals," "targets," "initiatives," "focus," "potentially," "probably," "projects," "outlook" or similar expressions or future conditional verbs such as "may," "will," "should," "would," and "could." Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events.

Forward-looking statements are subject to significant risks and uncertainties. Any forward-looking statement made in this release is subject to the safe harbor protections set forth in the Private Securities Litigation Reform Act of 1995. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward looking statements. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2016 and in other periodic reports that we file with the SEC.

 

 

HANCOCK HOLDING COMPANY FINANCIAL HIGHLIGHTS (Unaudited)
	Three Months Ended									Twelve Months Ended
(dollars and common share data in thousands, except per share amounts)	12/31/2017			9/30/2017			12/31/2016			12/31/2017			12/31/2016
INCOME STATEMENT DATA
Net interest income	$	208,047		$	202,857		$	167,798		$	792,312		$	659,116
Net interest income (TE) (a)		216,996			211,436			175,314			826,702			684,955
Provision for loan losses		14,986			13,040			14,455			58,968			110,659
Noninterest income		69,688			67,115			65,893			267,781			250,781
Noninterest expense		168,063			177,616			156,283			692,691			612,315
Net income		55,449			58,902			51,831			215,632			149,296
For informational purposes only:
Nonoperating items, net - pre-tax		—			11,393			—			24,121			4,978
Impact of re-measurement of defered tax asset (b)		19,520			—			—			19,520			—
PERIOD-END BALANCE SHEET DATA
Loans	$	19,004,163		$	18,786,285		$	16,752,151		$	19,004,163		$	16,752,151
Securities		5,888,380			5,624,552			5,017,128			5,888,380			5,017,128
Earning assets		25,024,792			24,545,798			21,881,520			25,024,792			21,881,520
Total assets		27,336,086			26,816,755			23,975,302			27,336,086			23,975,302
Noninterest-bearing deposits		8,307,497			7,896,384			7,658,203			8,307,497			7,658,203
Total deposits		22,253,202			21,533,859			19,424,266			22,253,202			19,424,266
Common shareholders' equity		2,884,949			2,863,275			2,719,768			2,884,949			2,719,768
AVERAGE BALANCE SHEET DATA
Loans	$	18,839,537		$	18,591,219		$	16,323,897		$	18,280,885		$	16,064,593
Securities (c)		5,801,451			5,679,841			4,939,240			5,442,829			4,706,482
Earning assets		24,812,676			24,487,426			21,462,188			24,108,711			21,180,146
Total assets		26,973,507			26,677,573			23,437,530			26,240,751			23,178,633
Noninterest-bearing deposits		8,095,563			7,775,913			7,534,392			7,777,652			7,232,221
Total deposits		21,762,757			21,349,818			18,912,155			20,831,582			18,656,325
Common shareholders' equity		2,867,475			2,838,517			2,517,418			2,806,868			2,463,067
COMMON SHARE DATA
Earnings per share - diluted	$	0.64		$	0.68		$	0.64		$	2.48		$	1.87
Cash dividends per share		0.24			0.24			0.24			0.96			0.96
Book value per share (period-end)		33.86			33.78			32.29			33.86			32.29
Tangible book value per share (period-end)		24.05			23.92			23.87			24.05			23.87
Weighted average number of shares - diluted		85,303			84,980			79,067			84,963			77,949
Period-end number of shares		85,200			84,767			84,235			85,200			84,235
Market data
High sales price	$	53.35		$	50.40		$	45.50		$	53.35		$	45.50
Low sales price		46.18			41.05			31.73			41.05			20.01
Period-end closing price		49.50			48.45			43.10			49.50			43.10
Trading volume		29,308			33,243			43,664			146,705			184,460
PERFORMANCE RATIOS
Return on average assets		0.82	%		0.88	%		0.88	%		0.82	%		0.64	%
Return on average common equity		7.67	%		8.23	%		8.19	%		7.68	%		6.06	%
Return on average tangible common equity		10.81	%		11.68	%		11.42	%		10.78	%		8.56	%
Tangible common equity ratio (d)		7.73	%		7.80	%		8.64	%		7.73	%		8.64	%
Net interest margin (TE)		3.48	%		3.44	%		3.26	%		3.43	%		3.23	%
Average loan/deposit ratio		86.57	%		87.08	%		86.31	%		87.76	%		86.11	%
Efficiency ratio (e)		56.57	%		57.50	%		62.82	%		58.87	%		62.79	%
Allowance for loan losses as a percent of period-end loans		1.14	%		1.19	%		1.37	%		1.14	%		1.37	%
Annualized net non-purchased credit impaired charge-offs to average loans		0.44	%		0.25	%		0.50	%		0.38	%		0.37	%
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due		54.18	%		56.45	%		63.58	%		54.18	%		63.58	%
Noninterest income as a percent of total revenue (TE)		24.31	%		24.09	%		27.32	%		24.47	%		26.80	%
FTE headcount		3,887			3,979			3,724			3,887			3,724

 

HANCOCK HOLDING COMPANY QUARTERLY HIGHLIGHTS (Unaudited)
	Three Months Ended
(dollars and common share data in thousands, except per share amounts)	12/31/2017			9/30/2017			6/30/2017			3/31/2017			12/31/2016
INCOME STATEMENT DATA
Net interest income	$	208,047		$	202,857		$	199,717		$	181,691		$	167,798
Net interest income (TE) (a)		216,996			211,436			208,281			189,989			175,314
Provision for loan losses		14,986			13,040			14,951			15,991			14,455
Noninterest income		69,688			67,115			67,487			63,491			65,893
Noninterest expense		168,063			177,616			183,470			163,542			156,283
Net income		55,449			58,902			52,267			49,014			51,831
For informational purposes only:
Nonoperating items, net - pre-tax		—			11,393			10,617			2,111			—
Impact of re-measurement of defered tax asset (b)		19,520			—			—			—			—
PERIOD-END BALANCE SHEET DATA
Loans	$	19,004,163		$	18,786,285		$	18,473,841		$	18,204,868		$	16,752,151
Securities		5,888,380			5,624,552			5,668,836			5,001,273			5,017,128
Earning assets		25,024,792			24,545,798			24,295,892			23,278,297			21,881,520
Total assets		27,336,086			26,816,755			26,630,569			25,485,026			23,975,302
Noninterest-bearing deposits		8,307,497			7,896,384			7,887,867			7,722,279			7,658,203
Total deposits		22,253,202			21,533,859			21,442,815			19,922,020			19,424,266
Common shareholders' equity		2,884,949			2,863,275			2,813,962			2,763,622			2,719,768
AVERAGE BALANCE SHEET DATA
Loans	$	18,839,537		$	18,591,219		$	18,369,446		$	17,303,044		$	16,323,897
Securities (c)		5,801,451			5,679,841			5,241,735			5,037,286			4,939,240
Earning assets		24,812,676			24,487,426			24,338,130			22,770,001			21,462,188
Total assets		26,973,507			26,677,573			26,526,253			24,756,506			23,437,530
Noninterest-bearing deposits		8,095,563			7,775,913			7,769,932			7,462,258			7,534,392
Total deposits		21,762,757			21,349,818			20,932,561			19,247,858			18,912,155
Common shareholders' equity		2,867,475			2,838,517			2,786,566			2,733,089			2,517,418
COMMON SHARE DATA
Earnings per share - diluted	$	0.64		$	0.68		$	0.60		$	0.57		$	0.64
Cash dividends per share		0.24			0.24			0.24			0.24			0.24
Book value per share (period-end)		33.86			33.78			33.21			32.70			32.29
Tangible book value per share (period-end)		24.05			23.92			23.27			23.19			23.87
Weighted average number of shares - diluted		85,303			84,980			84,867			84,624			79,067
Period-end number of shares		85,200			84,767			84,738			84,517			84,235
Market data
High sales price	$	53.35		$	50.40		$	52.94		$	49.50		$	45.50
Low sales price		46.18			41.05			42.70			41.71			31.73
Period-end closing price		49.50			48.45			49.00			45.55			43.10
Trading volume		29,308			33,243			39,035			45,119			43,664
PERFORMANCE RATIOS
Return on average assets		0.82	%		0.88	%		0.79	%		0.80	%		0.88	%
Return on average common equity		7.67	%		8.23	%		7.52	%		7.27	%		8.19	%
Return on average tangible common equity		10.81	%		11.68	%		10.69	%		9.92	%		11.42	%
Tangible common equity ratio (d)		7.73	%		7.80	%		7.65	%		7.94	%		8.64	%
Net interest margin (TE)		3.48	%		3.44	%		3.43	%		3.37	%		3.26	%
Average loan/deposit ratio		86.57	%		87.08	%		87.76	%		89.90	%		86.31	%
Efficiency ratio (e)		56.57	%		57.50	%		60.59	%		61.16	%		62.82	%
Allowance for loan losses as a percent of period-end loans		1.14	%		1.19	%		1.20	%		1.17	%		1.37	%
Annualized net non-purchased credit impaired charge-offs to average loans		0.44	%		0.25	%		0.13	%		0.70	%		0.50	%
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due		54.18	%		56.45	%		63.92	%		68.77	%		63.58	%
Noninterest income as a percent of total revenue (TE)		24.31	%		24.09	%		24.47	%		25.05	%		27.32	%
FTE headcount		3,887			3,979			4,162			3,819			3,724

 

(a) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 35%.

(b) Income tax expense resulting from re-measurement of the net deferred tax asset following the enactment of the Tax Cuts and Jobs Act of 2017.

(c) Average securities does not include unrealized holding gains/losses on available for sale securities.

(d) The tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets.

(e) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles, and nonoperating items.

 

 

HANCOCK HOLDING COMPANY INCOME STATEMENT (Unaudited)
	Three Months Ended									Twelve Months Ended
(dollars in thousands, except per share data)	12/31/2017			9/30/2017			12/31/2016			12/31/2017			12/31/2016
NET INCOME
Interest income	$	239,173		$	232,716		$	185,867		$	900,581		$	732,167
Interest income (TE) (f)		248,122			241,295			193,383			934,971			758,006
Interest expense		31,126			29,859			18,069			108,269			73,051
Net interest income (TE)		216,996			211,436			175,314			826,702			684,955
Provision for loan losses		14,986			13,040			14,455			58,968			110,659
Noninterest income		69,688			67,115			65,893			267,781			250,781
Noninterest expense		168,063			177,616			156,283			692,691			612,315
Income before income taxes		94,686			79,316			62,953			308,434			186,923
Income tax expense		39,237			20,414			11,122			92,802			37,627
Net income	$	55,449		$	58,902		$	51,831		$	215,632		$	149,296
NONINTEREST INCOME					.
Service charges on deposit accounts	$	22,455		$	21,444		$	18,694		$	83,166		$	74,187
Trust fees		11,079			10,742			11,764			44,538			46,589
Bank card and ATM fees		14,234			13,390			12,317			53,779			47,427
Investment and annuity fees		5,089			5,570			4,212			20,529			18,477
Secondary mortgage market operations		3,244			4,157			4,277			15,209			16,282
Insurance commissions and fees		713			660			866			3,212			4,501
Amortization of FDIC loss share receivable		—			—			(1,240)			(2,427)			(5,918)
Other income		12,874			11,152			14,714			45,423			47,482
Securities transactions, net		—			—			289			—			1,754
Total operating noninterest income		69,688			67,115			65,893			263,429			250,781
Nonoperating income		—			—			—			4,352			—
Total noninterest income	$	69,688		$	67,115		$	65,893		$	267,781		$	250,781
NONINTEREST EXPENSE
Personnel expense	$	95,159		$	92,621		$	87,551		$	373,002		$	339,692
Net occupancy expense		11,585			12,102			10,478			47,417			41,296
Equipment expense		3,383			3,626			3,460			14,516			13,663
Other real estate (income) expense, net		(340)			199			615			(1,158)			(3,804)
Other operating expense		52,391			51,605			49,413			208,024			196,709
Amortization of intangibles		5,885			6,070			4,766			22,417			19,781
Total operating expense		168,063			166,223			156,283			664,218			607,337
Nonoperating expense		—			11,393			—			28,473			4,978
Total noninterest expense	$	168,063		$	177,616		$	156,283		$	692,691		$	612,315
INCOME TAX EXPENSE
Income tax expense - operating income	$	19,717		$	24,402		$	11,122		$	81,724		$	39,369
Income tax (benefit) - nonoperating items		—			(3,988)			—			(8,442)			(1,742)
Impact of re-measurement of deferred tax asset (g)		19,520			—			—			19,520			—
Total income tax expense	$	39,237		$	20,414		$	11,122		$	92,802		$	37,627
COMMON SHARE DATA
Earnings per share:
Basic	$	0.64		$	0.68		$	0.64		$	2.49		$	1.87
Diluted		0.64			0.68			0.64			2.48			1.87

HANCOCK HOLDING COMPANY INCOME STATEMENT (Unaudited)
	Three Months Ended
(dollars in thousands, except per share data)	12/31/2017			9/30/2017			6/30/2017			3/31/2017			12/31/2016
NET INCOME
Interest income	$	239,173		$	232,716		$	226,177		$	202,515		$	185,867
Interest income (TE) (f)		248,122			241,295			234,741			210,813			193,383
Interest expense		31,126			29,859			26,460			20,824			18,069
Net interest income (TE)		216,996			211,436			208,281			189,989			175,314
Provision for loan losses		14,986			13,040			14,951			15,991			14,455
Noninterest income		69,688			67,115			67,487			63,491			65,893
Noninterest expense		168,063			177,616			183,470			163,542			156,283
Income before income taxes		94,686			79,316			68,783			65,649			62,953
Income tax expense		39,237			20,414			16,516			16,635			11,122
Net income	$	55,449		$	58,902		$	52,267		$	49,014		$	51,831
NONINTEREST INCOME
Service charges on deposit accounts	$	22,455		$	21,444		$	20,061		$	19,206		$	18,694
Trust fees		11,079			10,742			11,506			11,211			11,764
Bank card and ATM fees		14,234			13,390			13,687			12,468			12,317
Investment and annuity fees		5,089			5,570			5,271			4,599			4,212
Secondary mortgage market operations		3,244			4,157			4,241			3,567			4,277
Insurance commissions and fees		713			660			1,174			665			866
Amortization of FDIC loss share receivable		—			—			(1,327)			(1,100)			(1,240)
Other income		12,874			11,152			12,874			8,523			14,714
Securities transactions, net		—			—			—			—			289
Total operating noninterest income		69,688			67,115			67,487			59,139			65,893
Nonoperating income		—			—			—			4,352			—
Total noninterest income	$	69,688		$	67,115		$	67,487		$	63,491		$	65,893
NONINTEREST EXPENSE
Personnel expense	$	95,159		$	92,621		$	96,210		$	89,012		$	87,551
Net occupancy expense		11,585			12,102			12,968			10,762			10,478
Equipment expense		3,383			3,626			3,799			3,708			3,460
Other real estate (income) expense, net		(340)			199			(1,004)			(13)			615
Other operating expense		52,391			51,605			55,123			48,905			49,413
Amortization of intangibles		5,885			6,070			5,757			4,705			4,766
Total operating expense		168,063			166,223			172,853			157,079			156,283
Nonoperating expense		—			11,393			10,617			6,463			—
Total noninterest expense	$	168,063		$	177,616		$	183,470		$	163,542		$	156,283
INCOME TAX EXPENSE
Income tax expense - operating income	$	19,717		$	24,402		$	20,232		$	17,374		$	11,122
Income tax (benefit) - nonoperating items		—			(3,988)			(3,716)			(739)			—
Impact of re-measurement of deferred tax asset (g)		19,520			—			—			—			—
Total income tax expense	$	39,237		$	20,414		$	16,516		$	16,635		$	11,122
COMMON SHARE DATA
Earnings per share:
Basic	$	0.64		$	0.68		$	0.60		$	0.57		$	0.64
Diluted		0.64			0.68			0.60			0.57			0.64

 

HANCOCK HOLDING COMPANY PERIOD-END BALANCE SHEET (Unaudited)
(dollars in thousands)		12/31/2017				9/30/2017				6/30/2017				3/31/2017				12/31/2016
ASSETS
Commercial non-real estate loans		$	8,297,937			$	8,129,429			$	8,093,104			$	8,074,287			$	7,613,917
Commercial real estate - owner occupied			2,142,439				2,076,014				2,078,332				2,047,451				1,906,821
Total commercial and industrial loans			10,440,376				10,205,443				10,171,436				10,121,738				9,520,738
Commercial real estate - income producing			2,384,599				2,511,808				2,401,673				2,505,104				2,013,890
Construction and land development loans			1,373,421				1,373,048				1,313,522				1,252,667				1,010,879
Residential mortgage loans			2,690,472				2,596,692				2,493,923				2,266,263				2,146,713
Consumer loans			2,115,295				2,099,294				2,093,287				2,059,096				2,059,931
Total loans			19,004,163				18,786,285				18,473,841				18,204,868				16,752,151
Loans held for sale			39,865				23,236				26,787				20,883				34,064
Securities			5,888,380				5,624,552				5,668,836				5,001,273				5,017,128
Short-term investments			92,384				111,725				126,428				51,273				78,177
Earning assets			25,024,792				24,545,798				24,295,892				23,278,297				21,881,520
Allowance for loan losses			(217,308)				(223,122)				(221,865)				(213,550)				(229,418)
Goodwill			745,523				739,403				740,265				716,761				621,193
Other intangible assets, net			90,640				96,525				101,694				86,952				87,757
Other assets			1,692,439				1,658,151				1,714,583				1,616,566				1,614,250
Total assets		$	27,336,086			$	26,816,755			$	26,630,569			$	25,485,026			$	23,975,302
LIABILITIES
Noninterest-bearing deposits		$	8,307,497			$	7,896,384			$	7,887,867			$	7,722,279			$	7,658,203
Interest-bearing transaction and savings deposits			8,181,554				7,893,546				8,402,133				7,162,760				6,910,466
Interest-bearing public fund deposits			3,040,318				2,762,048				2,537,030				2,595,263				2,563,758
Time deposits			2,723,833				2,981,881				2,615,785				2,441,718				2,291,839
Total interest-bearing deposits			13,945,705				13,637,475				13,554,948				12,199,741				11,766,063
Total deposits			22,253,202				21,533,859				21,442,815				19,922,020				19,424,266
Short-term borrowings			1,703,890				1,737,151				1,810,907				2,121,932				1,225,406
Long-term debt			305,513				331,179				407,876				525,082				436,280
Other liabilities			188,532				351,291				155,009				152,370				169,582
Total liabilities			24,451,137				23,953,480				23,816,607				22,721,404				21,255,534
COMMON SHAREHOLDERS' EQUITY
Common stock net of treasury and capital surplus			2,010,833				2,012,835				2,007,942				2,003,181				1,989,611
Retained earnings			983,188				948,591				910,459				878,953				850,689
Accumulated other comprehensive income			(109,072)				(98,151)				(104,439)				(118,512)				(120,532)
Total common shareholders' equity			2,884,949				2,863,275				2,813,962				2,763,622				2,719,768
Total liabilities & shareholders' equity		$	27,336,086			$	26,816,755			$	26,630,569			$	25,485,026			$	23,975,302
CAPITAL RATIOS
Tangible common equity		$	2,048,787			$	2,027,347			$	1,972,003			$	1,959,909			$	2,010,818
Tier 1 capital (h)			2,189,848				2,167,917				2,119,895				2,119,125				2,184,812
Common equity (period-end) as a percent of total assets (period-end)			10.55	%			10.68	%			10.57	%			10.84	%			11.34	%
Tangible common equity ratio			7.73	%			7.80	%			7.65	%			7.94	%			8.64	%
Leverage (Tier 1) ratio (h)			8.34	%			8.34	%			8.21	%			8.79	%			9.56	%
Tier 1 risk-based capital ratio (h)			10.08	%			10.10	%			10.01	%			10.16	%			11.26	%
Total risk-based capital ratio (h)			11.77	%			11.84	%			11.76	%			11.91	%			13.21	%

 

(h) Estimated for most recent period-end. Regulatory capital and related ratios as of 12/31/2017 reflect the impact of the re-measurement of the net deferred tax asset following the enactment of the Tax Cuts and Jobs Act of 2017. The Financial Accounting Standards Board's proposed guidance to require a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the change in corporate tax rate, if implemented, would increase the Company's Tier 1 capital by $25.4 million, resulting in an adjusted estimated Leverage of 8.43%, Tier 1 risk-based capital of 10.19% and Total risk-based capital of 11.89% at 12/31/2017.

HANCOCK HOLDING COMPANY AVERAGE BALANCE SHEET (Unaudited)
	Three Months Ended									Twelve Months Ended
(dollars in thousands)	12/31/2017			9/30/2017			12/31/2016			12/31/2017			12/31/2016
ASSETS
Commercial non-real estate loans	$	8,171,016		$	8,088,195		$	7,322,497		$	8,048,128		$	7,174,271
Commercial real estate - owner occupied		2,102,635			2,065,501			1,890,649			2,041,631			1,900,262
Total commercial and industrial loans		10,273,651			10,153,696			9,213,146			10,089,759			9,074,533
Commercial real estate - income producing		2,451,823			2,467,939			2,004,025			2,380,012			1,858,323
Construction and land development loans		1,370,617			1,324,139			965,382			1,281,251			1,026,348
Residential mortgage loans		2,642,308			2,549,338			2,085,081			2,445,787			2,044,718
Consumer loans		2,101,138			2,096,107			2,056,263			2,084,076			2,060,671
Total loans		18,839,537			18,591,219			16,323,897			18,280,885			16,064,593
Loans held for sale		22,231			21,723			32,398			21,920			28,777
Securities (i)		5,801,451			5,679,841			4,939,240			5,442,829			4,706,482
Short-term investments		149,457			194,643			166,653			363,077			380,294
Earning assets		24,812,676			24,487,426			21,462,188			24,108,711			21,180,146
Allowance for loan losses		(225,769)			(224,537)			(237,316)			(223,416)			(217,550)
Goodwill and other intangible assets		833,162			837,107			711,255			806,900			718,592
Other assets		1,553,438			1,577,577			1,501,403			1,548,556			1,497,445
Total assets	$	26,973,507		$	26,677,573		$	23,437,530		$	26,240,751		$	23,178,633
LIABILITIES AND COMMON SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	8,095,563		$	7,775,913		$	7,534,392		$	7,777,652		$	7,232,221
Interest-bearing transaction and savings deposits		7,927,250			8,097,370			6,761,923			7,746,220			6,772,364
Interest-bearing public fund deposits		2,803,547			2,764,961			2,316,997			2,664,929			2,261,659
Time deposits		2,936,397			2,711,574			2,298,843			2,642,781			2,390,081
Total interest-bearing deposits		13,667,194			13,573,905			11,377,763			13,053,930			11,424,104
Total deposits		21,762,757			21,349,818			18,912,155			20,831,582			18,656,325
Short-term borrowings		1,763,189			1,909,365			1,367,504			2,006,896			1,412,194
Long-term debt		312,719			339,535			453,068			384,127			469,064
Other liabilities		267,367			240,338			187,385			211,278			177,983
Common shareholders' equity		2,867,475			2,838,517			2,517,418			2,806,868			2,463,067
Total liabilities & shareholders' equity	$	26,973,507		$	26,677,573		$	23,437,530		$	26,240,751		$	23,178,633

 

 

HANCOCK HOLDING COMPANY AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY
	Three Months Ended
		12/31/2017													9/30/2017													12/31/2016
(dollars in millions)	Volume					Interest				Rate					Volume				Interest				Rate					Volume				Interest				Rate
AVERAGE EARNING ASSETS
Commercial & real estate loans (TE) (j)		$	14,096.1			$	154.5				4.35	%			$	13,945.8			$	151.3				4.31	%			$	12,182.5			$	116.8				3.81	%
Residential mortgage loans			2,642.3				26.3				3.99	%				2,549.3				25.0				3.94	%				2,085.1				20.7				3.98	%
Consumer loans			2,101.1				29.8				5.63	%				2,096.1				29.4				5.57	%				2,056.3				26.5				5.13	%
Loan fees & late charges			—				0.6				—	%				—				(0.5	)			—	%				—				(0.5	)			—	%
Total loans (TE) (k)			18,839.5				211.2				4.46	%				18,591.2				205.2				4.39	%				16,323.9				163.5				3.99	%
Loans held for sale			22.2				0.2				3.28	%				21.7				0.2				3.97	%				32.4				0.3				3.59	%
US Treasury and government agency securities			144.5				0.8				2.21	%				125.6				0.7				2.08	%				97.9				0.5				1.93	%
CMOs and mortgage backed securities			4,682.2				26.2				2.24	%				4,575.0				25.4				2.21	%				4,017.9				21.0				2.09	%
Municipals (TE)			971.1				9.3				3.82	%				975.4				9.2				3.80	%				819.3				7.9				3.86	%
Other securities			3.7				—				2.03	%				3.8				0.0				1.94	%				4.1				0.0				1.79	%
Total securities (TE) (l)			5,801.5				36.3				2.50	%				5,679.8				35.3				2.48	%				4,939.2				29.4				2.38	%
Total short-term investments			149.5				0.4				1.07	%				194.7				0.6				1.17	%				166.7				0.2				0.49	%
Average earning assets yield (TE)		$	24,812.7				248.1				3.98	%			$	24,487.4				241.3				3.92	%			$	21,462.2				193.4				3.59	%
INTEREST-BEARING LIABILITIES
Interest-bearing transaction and savings deposits		$	7,927.3				8.3				0.42	%			$	8,097.4				8.4				0.41	%			$	6,761.9				4.3				0.25	%
Time deposits			2,936.4				8.7				1.17	%				2,711.6				7.7				1.12	%				2,298.8				5.2				0.90	%
Public funds			2,803.5				6.6				0.93	%				2,764.9				5.7				0.82	%				2,317.0				2.5				0.43	%
Total interest-bearing deposits			13,667.2				23.6				0.68	%				13,573.9				21.8				0.64	%				11,377.7				12.0				0.42	%
Short-term borrowings			1,763.2				4.1				0.92	%				1,909.4				4.4				0.92	%				1,367.5				1.1				0.33	%
Long-term debt			312.7				3.4				4.37	%				339.5				3.6				4.29	%				453.1				4.9				4.36	%
Total borrowings			2,075.9				7.5				1.45	%				2,248.9				8.0				1.43	%				1,820.6				6.0				1.33	%
Total interest-bearing liabilities cost			15,743.1				31.1				0.79	%				15,822.8				29.8				0.75	%				13,198.3				18.0				0.55	%
Net interest-free funding sources			9,069.6													8,664.6													8,263.9
Total cost of funds			24,812.7				31.1				0.50	%				24,487.4				29.8				0.48	%				21,462.2				18.0				0.34	%
Net Interest Spread (TE)						$	217.0				3.19	%							$	211.5				3.17	%								175.4				3.05	%
Net Interest Margin (TE)		$	24,812.7			$	217.0				3.48	%			$	24,487.4			$	211.5				3.44	%			$	21,462.2			$	175.4				3.26	%