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Hancock Reports Fourth Quarter 2012 Financial Results



Hancock Reports Fourth Quarter 2012 Financial Results

Results Include Impact of a Bulk Loan Sale and Associated Loan Loss Provision

GULFPORT, Miss., Jan. 24, 2013 (GLOBE NEWSWIRE) -- Hancock Holding Company
(Nasdaq:HBHC) today announced financial results for the fourth quarter of
2012. Net income for the fourth quarter of 2012 was $47.0 million, or $.54 per
diluted common share, compared to $47.0 million, or $.55, in the third quarter
of 2012. Net income was $19.0 million, or $.22, in the fourth quarter of 2011.
Pre-tax earnings for the third and fourth quarters of 2012 included no
merger-related costs. The fourth quarter of 2011 included pre-tax
merger-related costs of $40.2 million.

Included in the Company's fourth quarter of 2012 results are:

  * A $13.7 million pre-tax, or $.10 per diluted common share, loan loss
    provision expense related to a bulk sale of loans with a net book value of
    approximately $40 million (details included in the asset quality
    discussion). The sale was completed near the end of the year.
  * Approximately $3.2 million, or $.04 per diluted common share, of one-time
    tax benefits mainly related to specific tax credits.
  * Approximately $.6 million of pre-tax securities transactions gains.
  * Realization of remaining cost synergies related to the Whitney
    acquisition.

Return on average assets was 0.99% for the fourth quarter of 2012, compared to
1.00% in the third quarter of 2012, and 0.39% in the fourth quarter a year
ago.

Operating income for the fourth quarter of 2012 was $46.6 million or $.54 per
diluted common share, compared to $49.8 million, or $.58, in the third quarter
of 2012. Operating income was $45.1 million, or $.53, in the fourth quarter of
2011. Operating income is defined as net income excluding tax-effected
merger-related costs and securities transactions gains or losses. In addition,
for the third quarter of 2012, operating income excluded the tax-effected
expenses associated with the repurchase of a portion of Whitney Bank's
subordinated debt (sub debt). Included in the financial tables is a
reconciliation of net income to operating income.

Hancock's return on average assets, on an operating basis, was 0.98% for the
fourth quarter of 2012, compared to 1.07% in the third quarter of 2012, and
0.93% in the fourth quarter a year ago.

The Company's pre-tax, pre-provision profit for the fourth quarter of 2012 was
$89.2 million compared to $78.5 million in the third quarter of 2012 and $76.5
million in the fourth quarter of 2011. Pre-tax pre-provision profit is total
revenue (TE) less non-interest expense and excludes merger-related costs,
securities transactions gains or losses and the sub debt redemption expenses.
Included in the financial tables is a reconciliation of net income to pre-tax,
pre-provision profit.

"The bulk loan sale completed at year-end was a prudent and effective use of
the Company's strong capital position in reducing both nonperforming assets
and the costs associated with carrying these assets," said Hancock's President
and Chief Executive Officer Carl J. Chaney. "This quarter we also realized the
full level of expense savings that we had targeted for the Whitney
acquisition. Now that we have reached this milestone and completed the systems
integration back in March, we are fully focused on our future as one strong
consolidated company. "

Highlights & Key Operating Items from Hancock's Fourth Quarter Results

Total assets were $19.5 billion at December 31, 2012, up $0.9 billion from
September 30, 2012. The increase is mainly related to temporary sources of
excess liquidity as noted in the deposit section below.

Loans

Total loans at December 31, 2012 were $11.6 billion, up $143 million, or 1%,
from September 30, 2012. Excluding the FDIC-covered portfolio, which declined
approximately $40 million during the fourth quarter, and excluding the
reduction from the bulk loan sale of approximately $40 million, total loans
were up $223 million, or approximately 2%, linked-quarter. This compares to an
increase of $388 million, or 4%, during the third quarter of 2012.

New originated loans and refinancings of over $500 million were funded in
markets throughout the company's footprint from both existing and new
customers, exceeding regularly scheduled payoffs and paydowns. The net loan
growth was mainly generated in the commercial and industrial (C&I) portfolio,
up 5% linked-quarter. While most markets across the Company's footprint
reported C&I growth, the most significant activity came from Louisiana and
Houston. These two markets are home to a significant part of the Gulf Coast's
energy sector, which again contributed to the growth during the quarter. The
Company's energy portfolio totaled $905 million as of December 31, 2012, up
from $758 million at September 30, 2012.

For the fourth quarter of 2012, average total loans were $11.5 billion, an
increase of $284 million compared to the third quarter of 2012.

Deposits

Total deposits at December 31, 2012 were $15.7 billion, up $1.0 billion, or
almost 7%, from September 30, 2012. Average deposits for the fourth quarter of
2012 were $15.1 billion, up $287 million, or 2%, from the third quarter of
2012.

Noninterest-bearing demand deposits (DDAs) totaled $5.6 billion at December
31, 2012, up $473 million, or 9%, compared to September 30, 2012. DDAs
comprised 36% of total period-end deposits at December 31, 2012, up slightly
from September 30, 2012.

Interest-bearing public fund deposits totaled $1.6 billion at year-end 2012,
up $259 million, or 20%, linked-quarter. DDA and public fund deposits
typically reflect higher balances at year-end with subsequent reductions
beginning in the first quarter.

Time deposits (CDs) totaled $2.5 billion at December 31, 2012, up $78 million,
or 3%, from September 30, 2012. During the fourth quarter, approximately $492
million of time deposits matured at an average rate of .38%, of which
approximately $380 million renewed at an average cost of .18%. Additionally,
in November of 2012, the Company issued $200 million in brokered CDs. These
CDs were issued as a temporary liquidity source related to the year-end
expiration of the FDIC Transaction Account Guarantee (TAG) Program. Half of
the deposits issued were 3-month CDs with a cost of .50%. The remaining
deposits were 6-month CDs issued at a cost of .65%. The Company has not
experienced any material outflow of deposits as a result of the TAG
expiration.

Asset Quality

At the end of 2012, the Company completed a bulk sale of loans with a net book
value of approximately $40 million. Approximately $36 million of the loans
sold were previously reported as nonperforming loans. The remaining $4 million
of loans sold were acquired credit-impaired credits that were not reported as
nonperforming loans under purchase accounting. The sale added $13.7 million to
the provision for loan losses, and $16.2 million to net charge-offs in the
fourth quarter of 2012. Specific reserves totaling $2.5 million had been
previously recorded on loans included in the sale. The credits sold had a
total of approximately $56 million in remaining contractual principal. 

Non-performing assets (NPAs), which exclude acquired credit-impaired loans
from Whitney and People's First, totaled $256 million at December 31, 2012,
down $42 million from $298 million at September 30, 2012. Non-performing
assets as a percent of total loans, ORE and foreclosed assets was 2.19% at
December 31, 2012, compared to 2.58% at September 30, 2012. The decrease in
overall NPAs reflects both the impact of the bulk sale and a net reduction of
$28.5 million in other real estate (ORE) properties during the fourth
quarter. 

The Company announced last quarter that it had approximately $60 million of
ORE under sales contracts which were expected to close during the fourth
quarter of 2012. Approximately 70% of the total dollar amount of ORE under
contract closed during the fourth quarter. The remaining contracts, plus an
additional $15 million in new sales contracts entered into during the fourth
quarter, are expected to close in the first quarter of 2013.

Management will continue to evaluate the costs and benefits of additional
nonperforming loan and ORE sale opportunities as part of its normal credit
risk management process.

The Company's total allowance for loan losses was $136.2 million at December
31, 2012, compared to $135.6 million at September 30, 2012.  The ratio of the
allowance to period-end loans was 1.18% at December 31, 2012, virtually
unchanged from 1.19% at September 30, 2012. The allowance maintained on the
originated portion of the loan portfolio totaled $78.8 million, or 1.11% of
related loans, at December 31, 2012, down from $79.7 million, or 1.21%, at
September 30, 2012. Excluding the reduction in specific reserves related to
the bulk loan sale, the allowance on originated loans increased $1.6 million,
primarily due to this quarter's strong loan growth. A $.8 million allowance
was established in the fourth quarter for acquired performing loans that have
become impaired. The allowance for the third quarter of 2012 reflected a $1.6
million reduction, due primarily to charge-offs on impaired loans with
specific reserves. The allowance ratio for originated loans is expected to
decline as the proportion of this portfolio representing new, high quality
business grows, other factors held constant.

Net charge-offs from the non-covered loan portfolio were $28.0 million, or
.97% of average total loans on an annualized basis in the fourth
quarter. Excluding the impact of the bulk sale noted above, non-covered net
charge-offs for the fourth quarter of 2012 were $11.8 million, or .41% of
average total loans, compared to $9.7 million, or .34% of average total loans,
for the third quarter of 2012. 

Hancock recorded a total provision for loan losses for the fourth quarter of
2012 of $28.1 million, up from $8.1 million in the third quarter of
2012. Excluding the impact of the bulk sale noted above, provision expense for
the fourth quarter of 2012 was $14.4 million. The provision for non-covered
loans, excluding the impact of the bulk sale, increased to $14.2 million in
the fourth quarter of 2012 from $8.1 million in the third quarter of
2012. This increase reflects the $2.1 million higher level of net charge-offs
in the current quarter and the allowance build activity noted above. 

During the fourth quarter of 2012, the Company recorded a $4.0 million
increase in the allowance for losses related to impairment of certain pools of
covered loans, with a related increase of $3.8 million in the Company's FDIC
loss share indemnification asset. The net impact on provision expense from the
covered portfolio was $.2 million in the fourth quarter, compared to no
provision impact for the third quarter of 2012.

Net Interest Income

Net interest income (TE) for the fourth quarter of 2012 was $182.8 million, up
from $180.1 million in the third quarter of 2012. Average earning assets were
$16.2 billion in the fourth quarter of 2012, up $416 million from the third
quarter of 2012.

The net interest margin (TE) was 4.48% for the fourth quarter of 2012, down 6
basis points (bps) from 4.54% in the third quarter of 2012. The core margin of
3.61% (reported net interest income (TE) excluding total net purchase
accounting adjustments, annualized, as a percent of total earning assets)
compressed approximately 14bps during the fourth quarter, mainly from a
decline in both the core yield on the loan and the securities portfolios. The
margin was favorably impacted by changes in the mix of earning assets and
funding sources and a slight decline in funding costs. 

Whitney's acquired loan portfolio continued to perform better than expected
during the fourth quarter. As a result, re-projections of expected cash flows
from both the acquired and covered portfolios led to approximately $4 million
of additional loan accretion during the fourth quarter of 2012. The increase
favorably impacted both net interest income and the net interest
margin. Changes in activity related to prepayments and payoffs in the acquired
portfolio can cause quarterly accretion levels to be volatile.

As earning assets continue to reprice at lower rates, and with little
opportunity to further lower funding costs, management expects continued
compression in the core margin in the near term. All else equal, compression
in the reported margin in the near term is also anticipated.

Non-interest Income

Non-interest income totaled $64.9 million for the fourth quarter of 2012, up
from $63.8 million in the third quarter of 2012. Included in the fourth and
third quarters of 2012, respectively, were $.6 million and $.9 million of
securities transaction gains. 

Service charges on deposits totaled $20.2 million for the fourth quarter of
2012, slightly down from $20.8 million in the third quarter of 2012. 

Fees from secondary mortgage operations totaled $5.2 million for the fourth
quarter of 2012, up $.8 million, or 20%, linked-quarter. The increase reflects
a higher volume of mortgage production during the fourth quarter mainly
related to refinancing activity.

The linked-quarter changes related to trust, insurance, and investment and
annuity lines of business all reflect the volatility and seasonality of those
lines of business.

Non-interest Expense & Taxes

Operating expense for the fourth quarter of 2012 totaled $157.9 million, down
$6.5 million, or 4%, from the third quarter of 2012. Operating expense
excludes merger-related costs and, for the third quarter of 2012, $5.3 million
of sub debt repurchase expenses. There were essentially no merger-related
costs in the fourth or third quarters of 2012. 

Total personnel expense was $87.4 million in the fourth quarter of 2012, a
decrease of $.8 million, or 1%, from the third quarter of 2012. The
linked-quarter decrease mainly reflects the staff reductions associated with
previously announced branch consolidations.

Other operating expense totaled $45.1 million, down $4.9 million from the
third quarter of 2012. The linked-quarter decrease was mainly related to
reductions in professional service expense, telephone and data processing
expense, advertising expense and ORE expense.

Amortization of intangibles totaled $7.7 million during the fourth quarter,
down from $8.1 million in the third quarter of 2012. 

Operating expense, excluding amortization of intangibles, was $150.2 million
for the fourth quarter of 2012. The Company had previously provided operating
expense guidance for the fourth quarter of 2012 of $149 million to $153
million, excluding amortization of intangibles. The fourth quarter's operating
expense level reflects realization of 100% of the cost savings targeted with
the Whitney acquisition. As in previous years, management expects total
noninterest expense will increase in the first quarter of 2013 due to the
seasonal nature of certain line items.

The effective income tax rate for the fourth quarter of 2012 was 20%, down
from 26% in the third quarter of 2012. The linked-quarter decline is mainly
related to additional new markets tax credits and historical rehabilitation
tax credits added in the fourth quarter. Management expects the effective tax
rate to approximate 26-28% in 2013. The effective income tax rate continues to
be less than the statutory rate of 35%, due primarily to tax-exempt income and
tax credits. 

Capital

Common shareholders' equity totaled $2.5 billion at December 31, 2012. The
Company remained well-capitalized, and its tangible common equity (TCE) ratio
of 8.77% remained strong at December 31, 2012. The linked-quarter decline in
the TCE ratio of 32 bps was mainly related to the $0.9 billion increase in
total assets. 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 Friday, January 25, 2013 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.hancockbank.com. A slide presentation
related to fourth quarter results is 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 February 1, 2013 by dialing (855) 859-2056 or (404)
537-3406, passcode 86033364. 

About Hancock Holding Company

Hancock Holding Company, the parent company of Hancock Bank and Whitney Bank,
operates across a Gulf south corridor comprising South Mississippi; southern
and central Alabama; southern Louisiana; the northern, central, and Panhandle
regions of Florida; and Houston, Texas. The Hancock Holding Company family of
financial services companies also includes Hancock Investment Services, Inc.;
Hancock Insurance Agency and Whitney Insurance Agency, Inc.; corporate trust
offices in Gulfport and Jackson, Miss., New Orleans and Baton Rouge, La., and
Orlando, Fla.; and Harrison Finance Company. Additional information is
available at www.hancockbank.com and www.whitneybank.com.

The Hancock Holding Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=2758

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, and we intend such
forward-looking statements to be covered by the safe harbor provisions therein
and are including this statement for purposes of invoking these safe-harbor
provisions.  Forward-looking statements provide projections of results of
operations or of financial condition or state other forward-looking
information, such as expectations about future conditions and descriptions of
plans and strategies for the future.  

Forward-looking statements that we may make include, but may not be limited
to, comments with respect to future levels of economic activity in our
markets,  loan growth, deposit trends, credit quality trends, future sales of
nonperforming assets, net interest margin trends, future expense levels and
the ability to achieve additional cost savings, projected tax rates, future
profitability, purchase accounting impacts such as accretion levels, the
impact of the branch rationalization process, and the financial impact of
regulatory requirements.

Hancock's ability to accurately project results or predict the effects of
future plans or strategies is inherently limited. Although Hancock believes
that the expectations reflected in its forward-looking statements are based on
reasonable assumptions, actual results and performance could differ materially
from those set forth in the forward-looking statements. Factors that could
cause actual results to differ from those expressed in Hancock's
forward-looking statements include, but are not limited to, those risk factors
outlined in Hancock's public filings with the Securities and Exchange
Commission, which are available at the SEC's internet site
(http://www.sec.gov).

You are cautioned not to place undue reliance on these forward-looking
statements. Hancock does not intend, and undertakes no obligation, to update
or revise any forward-looking statements, whether as a result of differences
in actual results, changes in assumptions or changes in other factors
affecting such statements, except as required by law.

 Hancock Holding Company 
 Financial Highlights 
 (amounts in thousands, except per share data and FTE headcount) 
 (unaudited) 
                         Three Months Ended               Twelve Months Ended 
                        12/31/2012 9/30/2012  12/31/2011 12/31/2012 12/31/2011
Per Common Share Data
                                                                     
Earnings per share:                                                  
 Basic                  $0.55      $0.55      $0.22      $1.77      $1.16
 Diluted                $0.54      $0.55      $0.22      $1.75      $1.15
Operating earnings per                                               
share: (a)
Basic                   $0.54      $0.58      $0.53      $2.15      $2.03
Diluted                 $0.54      $0.58      $0.53      $2.13      $2.02
Cash dividends per      $0.24      $0.24      $0.24      $0.96      $0.96
share 
Book value per share    $28.91     $28.71     $27.95     $28.91     $27.95
(period-end)
Tangible book value per $19.27     $18.97     $17.76     $19.27     $17.76
share (period-end)
Weighted average number                                              
of shares:
 Basic                   84,798     84,777     84,696     84,767     65,590
 Diluted                 85,777     85,632     85,332     85,588     66,070
Period-end number of     84,848     84,782     84,705     84,848     84,705
shares
Market data:                                                         
 High sales price       $32.50     $33.27     $33.72     $36.73     $35.68
 Low sales price        $29.47     $27.99     $25.38     $27.96     $25.38
 Period end closing     $31.73     $30.98     $31.97     $31.73     $31.97
price 
 Trading volume          20,910     26,877     41,076     119,519    137,360
                                                                     
                                                                     
Other Period-end Data
                                                                     
FTE headcount            4,235     4,290      4,736       4,235     4,736
Tangible common equity  $1,634,833 $1,608,285 $1,504,671 $1,634,833 $1,504,671
Tier I capital          $1,666,042 $1,631,372 $1,506,218 $1,666,042 $1,506,218
Goodwill                $628,877   $628,877   $651,162   $628,877   $651,162
Amortizing intangibles  $189,409   $197,139   $211,075   $189,409   $211,075
                                                                     
Performance Ratios
                                                                     
Return on average       0.99%      1.00%      0.39%      0.80%      0.52%
assets
Return on average       0.98%      1.07%      0.93%      0.97%      0.90%
assets (operating) (a)
Return on average       7.67%      7.77%      3.11%      6.32%      4.26%
common equity 
Return on average
common equity           7.60%      8.24%      7.39%      7.66%      7.40%
(operating) (a)
Return on average       11.58%     11.87%     4.75%      9.72%      5.98%
tangible common equity
Return on average
tangible common equity  11.48%     12.59%     11.32%     11.78%     10.37%
(operating) (a)
Tangible common equity  8.77%      9.09%      7.96%      8.77%      7.96%
ratio 
Earning asset yield     4.76%      4.84%      4.83%      4.80%      4.82%
(TE)
Total cost of funds     0.28%      0.30%      0.44%      0.32%      0.57%
Net interest margin     4.48%      4.54%      4.39%      4.48%      4.25%
(TE)
Efficiency ratio (b)    60.78%     64.33%     65.39%     64.63%     66.35%
Allowance for loan
losses as a percent of  1.18%      1.19%      1.12%      1.18%      1.12%
period-end loans
Allowance for loan
losses to                                                            
non-performing loans +
accruing loans 
 90 days past due       81.40%     76.72%     101.40%    81.40%     101.40%
Average loan/deposit    76.29%     75.85%     72.80%     74.68%     72.67%
ratio
Noninterest income                                                   
excluding 
 securities
transactions as a                                                    
percent of 
 total revenue (TE)     26.02%     25.86%     25.05%     25.88%     27.91%

(a) Excludes tax-effected merger related expenses, debt early redemption costs
and securities transactions. Management believes that this is a useful
financial measure because it enables investors to assess ongoing operations.

(b) Efficiency ratio is defined as noninterest expense as a percent of total
revenue (TE) before amortization of purchased intangibles, securities
transactions, merger related expenses and debt redemption costs.

 Hancock Holding Company 
 Financial Highlights 
 (amounts in thousands) 
 (unaudited) 
 
                     Three Months Ended                  Twelve Months Ended 
                    12/31/2012  9/30/2012   12/31/2011  12/31/2012  12/31/2011
Asset Quality Information
                                                                     
Non-accrual loans   $121,837    $135,499    $99,128     $121,837    $99,128
(c)
Restructured loans  32,215      32,339      18,145      32,215      18,145
(d)
Total
non-performing      154,052     167,838     117,273     154,052     117,273
loans
ORE and foreclosed  102,072     130,613     159,751     102,072     159,751
assets
Total
non-performing      $256,124    $298,451    $277,024    $256,124    $277,024
assets
Non-performing
assets as a percent 2.19%       2.58%       2.44%       2.19%       2.44%
of loans, ORE and
foreclosed assets
Accruing loans 90   $13,244     $8,906      $5,880      $13,244     $5,880
days past due (c)
Accruing loans 90
days past due as a  0.11%       0.08%       0.05%       0.11%       0.05%
percent of loans
Non-performing
assets + accruing                                                    
loans 90 days past
due 
 to loans, ORE and  2.31%       2.66%       2.50%       2.31%       2.50%
foreclosed assets
                                                                     
Net charge-offs -   $28,038     $9,728      $11,298     $55,031     $33,805
non-covered
Net charge-offs -   3,230       3,550        11,100     $26,069     11,475
covered
Net charge-offs -
non-covered as a    0.97%       0.34%       0.40%       0.49%       0.40%
percent of average
loans
                                                                     
Allowance for loan  $136,171    $135,591    $124,881    $136,171    $124,881
losses
Allowance for loan
losses as a percent 1.18%       1.19%       1.12%       1.18%       1.12%
of period-end loans
Allowance for loan
losses to
non-performing                                                       
loans + accruing
loans 
 90 days past due   81.40%      76.72%      101.40%     81.40%      101.40%
                                                                     
Provision for loan  $28,051     $8,101      $11,512     $54,192     $38,732
losses
                                                                     
Allowance for Loan Losses
                                                                     
Beginning Balance   $135,591    $140,768    $118,113    $124,881    $81,997
 Provision for loan
losses before FDIC   3,996       --         18,990      41,021      52,437
benefit - covered
loans
 Benefit
attributable to      (3,797)     --          (17,654)    (38,198)    (49,431)
FDIC loss share
agreement
 Provision for loan
losses -            27,852      8,101       10,176      51,369      35,726
non-covered loans
(e)
Net provision for   28,051      8,101       11,512      54,192      38,732
loan losses
Increase in
indemnification      3,797       --         17,654      38,198      49,431
asset 
Charge-offs -       30,172      12,211      22,561      64,760      58,788
non-covered (e)
Recoveries -         (2,134)    (2,483)     (11,263)     (9,729)    (24,984)
non-covered
Net charge-offs -   3,230       3,550       11,100      26,069      11,475
covered
Net charge-offs     31,268      13,278      22,398      81,100      45,279
Ending Balance      $136,171    $135,591    $124,881    $136,171    $124,881
                                                                     
                                                                     
Net Charge-off Information 
                                                                     
Net charge-offs -                                                    
non-covered:
Commercial/real     $23,090     $3,905      $7,903      $36,902     $23,638
estate loans
Residential         1,372       2,012       799         5,951       1,529
mortgage loans
Consumer loans      3,576       3,811       2,596       12,178      8,638
Total net
charge-offs -       $28,038     $9,728      $11,298     $55,031     $33,805
non-covered 
                                                                     
Average loans:                                                       
Commercial/real     $8,262,736  $8,018,634  $7,989,294  $8,061,887  $5,967,995
estate loans
Residential         1,613,919   1,573,559   1,492,347   1,571,465   1,137,922
mortgage loans
Consumer loans      1,667,134   1,667,399   1,660,547   1,651,387   1,408,104
Total average loans $11,543,789 $11,259,592 $11,142,188 $11,284,739 $8,514,021
                                                                     
Net charge-offs -
non-covered to                                                       
average loans:
Commercial/real     1.11%       0.19%       0.39%       0.46%       0.40%
estate loans
Residential         0.34%       0.51%       0.21%       0.38%       0.14%
mortgage loans
Consumer loans      0.85%       0.91%       0.62%       0.74%       0.61%
Total net
charge-offs -       0.97%       0.34%       0.40%       0.49%       0.40%
non-covered to
average loans

(c) Non-accrual loans and accruing loans past due 90 days or more do not
include acquired credit-impaired loans which were written down to fair value
upon acquisition and accrete interest income over the remaining life of the
loan.

(d) Included in restructured loans are $15.8 million, $21.6 million, and $4.1
million in non-accrual loans at 12/31/12, 9/30/12, and 12/31/11,
respectively. Total excludes acquired credit-impaired loans.

(e) Net charge-offs related to the bulk loan sale in December 2012 were
approximately $16.2 million with an estimated impact on the provision of $13.7
million. 

 Hancock Holding Company 
 Financial Highlights 
 (amounts in thousands) 
 (unaudited) 
 
                          Three Months Ended              Twelve Months Ended 
                         12/31/2012 9/30/2012 12/31/2011 12/31/2012 12/31/2011
Income Statement
                                                                     
Interest income          $191,140   $189,205  $196,500   $762,549   $592,204
Interest income (TE)     194,075    192,071   199,453    774,134    604,129
Interest expense         11,275     11,949    18,131     51,682     70,970
Net interest income (TE) 182,800    180,122   181,322    722,452    533,159
Provision for loan       28,051     8,101     11,512     54,192     38,732
losses
Noninterest income                                                   
excluding 
 securities              64,308     62,842    60,592     252,195    206,426
transactions 
Securities transactions  623        917        (20)      1,552       (91)
gains/(losses)
Noninterest expense      157,920    169,714   205,610    713,067    594,014
Income before income     58,825     63,200    21,819     197,355    94,823
taxes
Income tax expense       11,866     16,216    2,854      45,613     18,064
Net income               $46,959    $46,984   $18,965    $151,742   $76,759
                                                                     
Merger-related expenses   --         (38)     40,202     45,789     86,762
Securities transactions  623        917        (20)      1,552       (91)
gains/(losses)
Debt early redemption     --        5,336      --        5,336       --
Taxes on adjustments      (218)     1,533     14,078     17,350     30,398
Operating income (f)     $46,554    $49,832   $45,109    $183,965   $133,214
                                                                     
Difference between
interest income and      $2,935     $2,866    $2,953     $11,585    $11,925
interest income (TE)
Provision for loan       28,051     8,101     11,512     54,192     38,732
losses
Merger-related expenses   --         (38)     40,202     45,789     86,762
Less securities
transactions              623       917        (20)      1,552       (91)
gains/(losses)
Debt early redemption     --        5,336      --        5,336       --
Income tax expense       11,866     16,216    2,854      45,613     18,064
Pre-tax, pre-provision   $89,188    $78,548   $76,506    $312,705   $232,333
profit (PTPP) (g)
                                                                     
Noninterest Income and Noninterest Expense
                                                                     
Service charges on       $20,232    $20,834   $16,520    $78,246    $55,265
deposit accounts
Trust fees               8,273      7,743     7,433      32,736     23,940
Bank card fees           7,591      7,568     8,338      31,698     28,879
Insurance fees           3,588      4,045     4,290      15,692     16,524
Investment & annuity     4,743      4,269     3,974      18,033     15,016
fees
ATM fees                 3,935      4,301     3,904      17,414     14,052
Secondary mortgage       5,160      4,312     3,564      16,488     10,484
market operations
Other income             10,786     9,770     12,569     41,888     42,266
Noninterest income                                                   
excluding
 securities transactions $64,308    $62,842   $60,592    $252,195   $206,426
Securities transactions  623        917        (20)      1,552       (91)
gains/(losses)
Total noninterest income                                             
including 
 securities transactions $64,931    $63,759   $60,572    $253,747   $206,335
                                                                     
Personnel expense        $87,358    $88,176   $88,485    $356,734   $272,642
Occupancy expense (net)  12,683     13,169    14,398     53,856     42,890
Equipment expense        5,051      5,010     3,625      21,862     13,808
Other operating expense  45,098     49,951    51,681     197,423    161,361
Amortization of          7,730      8,110     7,219      32,067     16,551
intangibles
Debt early redemption     --        5,336      --        5,336       -- 
Merger-related expenses   --         (38)     40,202     45,789     86,762
Total noninterest        $157,920   $169,714  $205,610   $713,067   $594,014
expense 

(f) Net income less tax-effected merger costs, debt early redemption costs,
and securities gains/losses. Management believes that this is a useful
financial measure because it enables investors to assess ongoing operations.

(g) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest
expense, merger items, debt early redemption costs, 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                  Twelve Months Ended 
                   12/31/2012  9/30/2012   12/31/2011  12/31/2012  12/31/2011
Period-end Balance Sheet
                                                                    
Commercial
non-real estate    $4,433,288  $4,235,823  $3,800,230  $4,433,288  $3,800,230
loans 
Construction and
land development   989,306     1,044,637   1,263,005   989,306     1,263,005
loans 
Commercial real    2,923,094   2,907,007   2,998,923   2,923,094   2,998,923
estate loans 
Residential        1,577,944   1,561,640   1,507,498   1,577,944   1,507,498
mortgage loans
Consumer loans     1,654,170   1,685,341   1,607,370   1,654,170   1,607,370
Total loans        11,577,802  11,434,448  11,177,026  11,577,802  11,177,026
Loans held for     50,605      50,389      72,378      50,605      72,378
sale
Securities         3,716,460   4,053,271   4,496,900   3,716,460   4,496,900
Short-term         1,500,188   320,057     1,184,419   1,500,188   1,184,419
investments
Earning assets     16,845,055  15,858,165  16,930,723  16,845,055  16,930,723
Allowance for loan (136,171)   (135,591)   (124,881)   (136,171)   (124,881)
losses
Other assets       2,755,601   2,800,472   2,968,254   2,755,601   2,968,254
Total assets       $19,464,485 $18,523,046 $19,774,096 $19,464,485 $19,774,096
                                                                    
Noninterest        $5,624,127  $5,151,146  $5,516,336  $5,624,127  $5,516,336
bearing deposits
Interest bearing
transaction and    6,038,003   5,876,638   5,602,962   6,038,003   5,602,962
savings deposits
Interest bearing
public fund        1,580,260   1,321,227   1,620,261   1,580,260   1,620,261
deposits
Time deposits      2,501,798   2,423,940   2,974,020   2,501,798   2,974,020
Total interest     10,120,061  9,621,805   10,197,243  10,120,061  10,197,243
bearing deposits
Total deposits     15,744,188  14,772,951  15,713,579  15,744,188  15,713,579
Other borrowed     1,035,722   1,056,961   1,398,346   1,035,722   1,398,346
funds
Other liabilities  231,297     258,646     295,008     231,297     295,008
Common
shareholders'      2,453,278   2,434,488   2,367,163   2,453,278   2,367,163
equity
Total liabilities  $19,464,485 $18,523,046 $19,774,096 $19,464,485 $19,774,096
& common equity
 
Capital Ratios
                                                                    
Common
shareholders'      $2,453,278  $2,434,488  $2,367,163  $2,453,278  $2,367,163
equity
Tier 1 capital     1,666,042   1,631,372   1,506,218   1,666,042   1,506,218
Tangible common    8.77%       9.09%       7.96%       8.77%       7.96%
equity ratio 
Common equity
(period-end) as a
percent of total   12.60%      13.14%      11.97%      12.60%      11.97%
assets
(period-end)
Leverage (Tier 1)  9.18%       9.17%       8.17%       9.18%       8.17%
ratio 
Tier 1 risk-based  12.61%      12.53%      11.48%      12.61%      11.48%
capital ratio (h)
Total risk-based   14.23%      14.19%      13.59%      14.23%      13.59%
capital ratio (h)

(h) estimated for most recent period-end

 Hancock Holding Company 
 Financial Highlights 
 (amounts in thousands) 
 (unaudited) 
 
                    Three Months Ended                  Twelve Months Ended 
                   12/31/2012  9/30/2012   12/31/2011  12/31/2012  12/31/2011
Average Balance Sheet
                                                                    
Commercial
non-real estate    $4,316,455  $4,056,457  $3,806,858  $4,007,506  $2,590,707
loans 
Construction and
land development   1,035,401   1,092,181   1,259,063   1,157,064   1,022,344
loans 
Commercial real    2,910,880   2,869,996   2,923,373   2,897,317   2,354,944
estate loans 
Residential        1,613,919   1,573,559   1,492,347   1,571,465   1,137,922
mortgage loans
Consumer loans     1,667,134   1,667,399   1,660,547   1,651,387   1,408,104
Total loans (i)    11,543,789  11,259,592  11,142,188  11,284,739  8,514,021
Securities (j)     3,732,815   4,039,191   4,224,492   4,063,817   3,074,373
Short-term         969,037     531,195     1,062,857   771,523     955,325
investments
Earning assets     16,245,641  15,829,978  16,429,537  16,120,079  12,543,719
Allowance for loan (136,254)   (140,661)   (118,245)   (136,257)   (102,784)
losses
Other assets       2,855,565   2,909,649   3,020,087   2,951,547   2,281,136
Total assets       $18,964,952 $18,598,966 $19,331,379 $18,935,369 $14,722,071
                                                                    
Noninterest        $5,420,081  $5,076,152  $5,231,197  $5,251,391  $3,400,064
bearing deposits
Interest bearing
transaction and    5,930,964   5,869,281   5,574,937   5,827,370   4,100,381
savings deposits
Interest bearing
public fund        1,332,163   1,426,405   1,344,422   1,451,459   1,314,633
deposits
Time deposits      2,448,694   2,473,450   3,155,007   2,579,963   2,901,475
Total interest     9,711,821   9,769,136   10,074,366  9,858,792   8,316,489
bearing deposits
Total deposits     15,131,902  14,845,288  15,305,563  15,110,183  11,716,553
Other borrowed     1,168,771   1,112,304   1,322,237   1,182,673   1,000,998
funds
Other liabilities  229,100     236,134     280,655     241,710     203,403
Common
shareholders'      2,435,179   2,405,240   2,422,924   2,400,803   1,801,117
equity
Total liabilities  $18,964,952 $18,598,966 $19,331,379 $18,935,369 $14,722,071
& common equity

(i) Includes loans held for sale

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

 Hancock Holding Company 
 Financial Highlights 
 (amounts in thousands) 
 (unaudited) 
 
Supplemental Asset Quality Information
(excluding covered assets and acquired loans)  12/31/2012 9/30/2012 12/31/2011
^k
Non-accrual loans (l) (m)                      $87,651    $106,413  $79,164
Restructured loans (n)                         27,451     32,339    18,145
Total non-performing loans                     115,102    138,752   97,309
ORE and foreclosed assets (o)                  75,771     91,725    115,769
Total non-performing assets                    $190,873   $230,477  $213,078
Non-performing assets as a percent of loans,   2.66%      3.45%     4.26%
ORE and foreclosed assets
Accruing loans 90 days past due                $7,737     $6,423    $4,871
Accruing loans 90 days past due as a percent   0.11%      0.10%     0.10%
of loans
Non-performing assets + accruing loans 90 days                       
past due 
 to loans, ORE and foreclosed assets           2.77%      3.55%     4.36%
Allowance for loan losses (p) (q)              $78,774    $79,749   $83,246
Allowance for loan losses as a percent of      1.11%      1.21%     1.70%
period-end loans
Allowance for loan losses to nonperforming loans +                   
accruing loans
 90 days past due                              64.13%     54.93%    81.47%

(k) Covered and acquired credit impaired loans are considered performing due
to the application of the accretion method under acquisition accounting.
Acquired loans are recorded at fair value with no allowance brought forward in
accordance with acquisition accounting. Certain acquired loans and foreclosed
assets are also covered under FDIC loss sharing agreements, which provide
considerable protection against credit risk. Due to the protection of loss
sharing agreements and impact of acquisition accounting, management has
excluded acquired loans and covered assets from this table to provide for
improved comparability to prior periods and better perspective into asset
quality trends.                   

(l) Excludes acquired covered loans not accounted for under the accretion
method of $4,100, $6,162, and $18,846.                          

(m) Excludes non-covered acquired performing loans at fair value of $30,087,
$22,924, and $1,118.                          

(n) Excludes non-covered acquired performing loans at fair value of $4,764,
$0, and $0.                                

(o) Excludes covered foreclosed assets of $26,301, $38,888, and
$43,982.                            

(p) Excludes allowance for loan losses recorded on covered acquired loans of
$56,609, $55,842, and $41,634.                     

(q) Excludes allowance for loan losses recorded on non-covered
acquired-performing loans of $788, $0 and $0.                

 
                           9/30/2012
                           Originated Acquired Loans Covered Loans Total
                           Loans      (r)            (s)
Commercial non-real estate $2,416,143 $1,797,827     $21,855       $4,235,825
loans 
Construction and land      628,067    368,476        48,094        1,044,637
development loans 
Commercial real estate     1,421,526  1,378,706      106,775       2,907,007
loans 
Residential mortgage loans 757,471    532,551        271,618       1,561,640
Consumer loans             1,357,987  219,962        107,390       1,685,339
Total loans                $6,581,194 $4,297,522     $555,732      $11,434,448
Change in loan balance     $770,336   ($382,032)     ($32,002)     $356,302
from previous quarter
                                                                    
                           12/31/2012
                           Originated Acquired Loans Covered Loans Total
                           Loans      (r)            (s)
Commercial non-real estate $2,713,385 $1,690,643     $29,260       $4,433,288
loans 
Construction and land      665,673    295,151        28,482        989,306
development loans 
Commercial real estate     1,548,402  1,279,546      95,146        2,923,094
loans 
Residential mortgage loans 827,985    486,444        263,515       1,577,944
Consumer loans             1,351,776  202,974        99,420        1,654,170
Total loans                $7,107,221 $3,954,758     $515,823      $11,577,802
Change in loan balance     $526,027   ($342,764)     ($39,909)     $143,354
from previous quarter

(r) Loans which have been acquired and no allowance brought forward in
accordance with acquisition accounting.          
                                               

(s) Loans which are covered by loss sharing agreements with the FDIC providing
considerable protection against credit risk.                               

 Hancock Holding Company 
 Average Balance and Net Interest Margin Summary 
 (amounts in thousands) 
 (unaudited) 
 
                 Three Months Ended
                 12/31/2012                 9/30/2012                  12/31/2011
                 Interest Volume      Rate  Interest Volume      Rate  Interest Volume      Rate
                                                                                             
Average Earning Assets
Commercial &
real estate      $113,004 $8,262,736  5.44% $109,069 $8,018,634  5.41% $116,800 $7,989,294  5.80%
loans (TE)
Residential       27,998   1,613,919  6.94%  28,533   1,573,559  7.25%  26,128   1,492,347  7.00%
mortgage loans
Consumer loans    28,593   1,667,134  6.82%  29,942   1,667,399  7.14%  29,194   1,660,547  6.98%
Loan fees & late  3,098    --         0.00%  891      --         0.00%  753      --         0.00%
charges
 Total loans      172,693  11,543,789 5.95%  168,435  11,259,592 5.95%  172,875  11,142,188 6.16%
(TE)
                                                                                             
US Treasury       2        150        4.65%  2        150        4.64%  6        2,460      0.97%
securities
US agency         49       18,165     1.08%  49       18,269     1.08%  1,539    258,051    2.39%
securities
CMOs              7,204    1,577,165  1.83%  7,820    1,663,741  1.88%  5,478    1,118,398  1.96%
Mortgage backed   10,475   1,891,704  2.22%  12,530   2,097,097  2.39%  15,163   2,526,939  2.40%
securities
Municipals (TE)   2,942    238,733    4.93%  2,864    252,771    4.53%  3,358    297,648    4.51%
Other securities  94       6,898      5.43%  63       7,163      3.58%  351      20,996     6.69%
 Total
securities (TE)   20,766   3,732,815  2.21%  23,328   4,039,191  2.30%  25,895   4,224,492  2.45%
(t)
                                                                                             
 Total
short-term        616      969,037    0.25%  308      531,195    0.23%  683      1,062,857  0.25%
investments
                                                                                             
 Average earning
assets yield      194,075 $16,245,641 4.76% $192,071 $15,829,978 4.84% $199,453 $16,429,537 4.82%
(TE)
                                                                                             
Interest-bearing                                                                             
Liabilities
Interest-bearing
transaction and   1,719    5,930,964  0.12%  1,688    5,869,281  0.11%  2,535    5,574,937  0.18%
savings
deposits 
Time deposits     4,507    2,448,694  0.73%  4,829    2,473,450  0.78%  9,412    3,155,007  1.18%
Public Funds      861      1,332,163  0.26%  1,002    1,426,405  0.28%  1,027    1,344,422  0.30%
 Total interest   7,087    9,711,821  0.29%  7,519    9,769,136  0.31%  12,974   10,074,366 0.51%
bearing deposits
                                                                                             
 Total            4,188    1,168,771  1.43%  4,430    1,112,304  1.58%  5,157    1,322,237  1.55%
borrowings
                                                                                             
 Total interest
bearing          $11,275  $10,880,592 0.41% $11,949  $10,881,440 0.44% $18,131  $11,396,603 0.63%
liabilities cost
                                                                                             
Net
interest-free              5,365,049                  4,948,538                  5,032,934   
funding sources
                                                                                             
Total Cost of    $11,275  $16,245,641 0.28% $11,949  $15,829,978 0.30% $18,131  $16,429,537 0.44%
Funds
                                                                                             
Net Interest     $182,800             4.35% $180,122             4.40% $181,322             4.20%
Spread (TE)
                                                                                             
Net Interest     $182,800 $16,245,641 4.48% $180,122 $15,829,978 4.54% $181,322 $16,429,537 4.39%
Margin (TE)

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

 Hancock Holding Company 
 Average Balance and Net Interest Margin Summary 
 (amounts in thousands) 
 (unaudited) 
 
                          Twelve Months Ended 
                         12/31/2012                 12/31/2011
                         Interest Volume      Rate  Interest Volume      Rate
                                                                          
Average Earning Assets                                                    
Commercial & real estate $443,360 $8,061,887  5.50% $330,301 $5,967,995  5.53%
loans (TE)
Residential mortgage      111,662  1,571,465  7.11%  77,958   1,137,922  6.85%
loans
Consumer loans            115,470  1,651,387  6.99%  98,324   1,408,104  6.98%
Loan fees & late charges  6,335    --         0.00%  1,815    --         0.00%
 Total loans (TE)         676,827  11,284,739 6.00%  508,398  8,514,021  5.97%
                                                                          
US Treasury securities    7        150        4.66%  42       8,652      0.49%
US agency securities      2,097    98,986     2.12%  5,628    277,509    2.03%
CMOs                      29,790   1,545,531  1.93%  18,900   742,508    2.55%
Mortgage backed           51,332   2,150,799  2.39%  55,572   1,772,212  3.14%
securities
Municipals (TE)           11,814   260,488    4.54%  12,338   249,164    4.95%
Other securities          348      7,863      4.43%  1,120    24,328     4.60%
 Total securities (TE)    95,388   4,063,817  2.35%  93,600   3,074,373  3.04%
(t)
                                                                          
 Total short-term         1,919    771,523    0.25%  2,131    955,325    0.22%
investments
                                                                          
 Average earning assets   774,134 $16,120,079 4.80% $604,129 $12,543,719 4.82%
yield (TE)
                                                                          
Interest-Bearing                                                          
Liabilities
Interest-bearing         $7,353   $5,827,370  0.13% $8,472   $4,100,381  0.21%
transaction deposits 
Time deposits             21,242   2,579,963  0.82%  42,071  2,901,475   1.45%
Public Funds              4,146    1,451,459  0.29%  5,147   1,314,633   0.39%
 Total interest bearing  $32,741  $9,858,792  0.33% $55,690  $8,316,489  0.67%
deposits
                                                                          
 Total borrowings         18,941   1,182,673  1.60%  15,280   1,000,998  1.53%
                                                                          
 Total interest bearing  $51,682  $11,041,465 0.47% $70,970  $9,317,487  0.76%
liabilities cost
                                                                          
Net interest-free                  5,078,614                 3,226,232    
funding sources
                                                                          
Total Cost of Funds      $51,682  $16,120,079 0.32% $70,970  $12,543,719 0.57%
                                                                          
Net Interest Spread (TE) $722,452             4.33% $533,159             4.06%
                                                                          
Net Interest Margin (TE) $722,452 $16,120,079 4.48% $533,159 $12,543,719 4.25%

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

CONTACT: For More Information
         Trisha Voltz Carlson
         SVP, Investor Relations Manager
         504.299.5208
         trisha.carlson@hancockbank.com

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