Hancock Reports First Quarter 2013 Financial Results

Hancock Reports First Quarter 2013 Financial Results

Announces $50 Million Efficiency and Process Improvement Initiative

GULFPORT, Miss., April 25, 2013 (GLOBE NEWSWIRE) -- Hancock Holding Company
(Nasdaq:HBHC) today announced financial results for the first quarter of 2013.
Net income for the first quarter of 2013 was $48.6 million, or $.56 per
diluted common share, compared to $47.0 million, or $.54, in the fourth
quarter of 2012. Net income was $18.5 million, or $.21 per diluted common
share, in the first quarter of 2012. Pre-tax earnings for the first quarter of
2013 and fourth quarter of 2012 included no merger-related costs. The first
quarter of 2012 included pre-tax merger-related costs of $33.9 million.

Included in the Company's first quarter of 2013 results are:

  *Approximately $7.5 million pre-tax, or $.06 per diluted common share, of
    higher than expected loan accretion income related to cash collected on
    zero carrying value acquired loan pools.
  *Approximately $6.6 million pre-tax, or $.05 per diluted common share, of
    net loan loss provision taken on the FDIC covered portfolio.
  *Approximately $1.1 million, or $.01 per diluted common share, of one-time
    tax benefits related to specific tax credits.

Due to continued rate pressure on earning assets and other economic headwinds
impacting overall revenue, management expects near term earnings to remain
flat to slightly down from current levels.

Management expects these pressures and headwinds will continue into the
foreseeable future. Therefore, as part of its ongoing planning process,
management reviewed its long-term strategic plan to determine the most
effective and efficient way of operating the consolidated organization. As
part of this review, it was determined that certain areas of the Company
needed to be right-sized or retooled, and as a result management is announcing
today an efficiency and process improvement initiative designed to reduce
overall annual expense levels by $50 million. 

"While it is appropriate to look back on the past year and recognize our
associates' hard work in completing the core systems conversion and achieving
our merger cost synergies, we must now focus on Hancock's future as one strong
combined company," said Hancock's President and Chief Executive Officer Carl
J. Chaney."During this new phase of our long-term strategic planning process,
it became apparent that we can no longer operate under the model of being all
things to all people.We recognize that in order to overcome the challenges of
both current and expected future operating environments we must make strategic
decisions that could involve a change of direction in certain markets.These
changes include improving the Company's profitability through short-term
efficiency improvements and longer-term process improvement and re-engineering
efforts.Our efforts will include reviews of both front and back office areas,
a review of the current branch network, as well as a review of business models
across our footprint.The Company is committed to reducing non-interest
expense over the next 7 quarters, and we expect to achieve 50% of our targeted
reduction by the end of the first quarter of 2014 and the remainder by the end
of the fourth quarter of 2014.When fully implemented, our annualized
non-interest expense will be $50 million lower than the annualized level of
non-interest expense for 2013 using our first quarter of 2013 results as a
base.With these expense reductions and a combination of revenue improvement
and balance sheet growth, we have set a long-term sustainable efficiency ratio
target of 57% to 59% beginning in 2016."

Management expects to incur certain one-time costs such as severance,
professional fees and lease buyouts in implementing the efficiency initiative,
although the scale of such costs cannot currently be estimated with
certainty.

Return on average assets (ROA) was 1.03% for the first quarter of 2013 and
0.99% for the fourth quarter of 2012.ROA was 0.39% in the first quarter a
year ago.Operating ROA was 1.03% in the first quarter of 2013 compared to
0.98% and 0.85% in the fourth and first quarters of 2012, respectively.

The Company's pre-tax, pre-provision profit (PTPP) for the first quarter of
2013 was $77.3 million compared to $89.2 million in the fourth quarter of 2012
and $69.2 million in the first quarter of 2012.PTPP is total revenue (TE)
less non-interest expense and excludes merger-related costs and securities
transactions gains or losses.Included in the financial tables is a
reconciliation of net income to PTPP.

Operating income for the first quarter of 2013 was $48.6 million or $.56 per
diluted common share, compared to $46.6 million, or $.54, in the fourth
quarter of 2012.Operating income was $40.5 million, or $.47, in the first
quarter of 2012.We define operating income as net income excluding
tax-effected merger-related costs and securities transactions gains or
losses.Included in the financial tables is a reconciliation of net income to
operating income.

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

Total assets were $19.1 billion at March 31, 2013, a decrease of $400 million
from December 31, 2012.The decrease is partly related to the seasonal and
short-term nature of certain balance sheet items.These items are detailed
below.

Loans

Total loans at March 31, 2013 were $11.5 billion, down $95 million, or less
than 1%, from December 31, 2012.Excluding the FDIC-covered portfolio, which
declined approximately $39 million during the first quarter, total loans were
down $56 million linked-quarter.Half of the overall decline was in commercial
real estate-related credits, with the balance related to consumer loans.

Underlying new loan activity was solid across many markets in the Company's
footprint, especially Houston, Florida and Louisiana.The largest component of
new activity was in the commercial and industrial (C&I) portfolio, with
additional support from commercial real estate lending activity on properties
used by smaller C&I customers.The Company's energy portfolio, a subset of C&I
loans, totaled $960 million as of March 31, 2013, up $55 million from December
31, 2012.Overall, the C&I portfolio was essentially stable during the first
quarter of 2013, as new activity was offset by expected reductions in balances
owed by some larger seasonal borrowers and other normal activity in the
customer base.

For the first quarter of 2013, average total loans were $11.5 billion,
virtually unchanged from the fourth quarter of 2012.

Based on current levels of activity, management expects some success in
achieving net loan growth in future quarters.

Deposits

Total deposits at March 31, 2013 were $15.3 billion, down $491 million, or 3%,
from December 31, 2012.Average deposits for the first quarter of 2013 were
$15.3 billion, up $181 million, or 1%, from the fourth quarter of 2012.

As noted last quarter, DDA and public fund deposits typically reflect higher
balances at year-end with subsequent reductions beginning in the first
quarter.Noninterest-bearing demand deposits (DDAs) totaled $5.4 billion at
March 31, 2013, down $206 million, or 4%, compared to December 31, 2012.DDAs
comprised 36% of total period-end deposits at March 31, 2013 and December 31,
2012.Interest-bearing public fund deposits totaled $1.5 billion at March 31,
2013, down $51 million, or 3%, from year-end 2012.

Time deposits (CDs) totaled $2.3 billion at March 31, 2013, down $213 million,
or 9%, from December 31, 2012.During the first quarter, approximately $600
million of time deposits matured at an average rate of .37%, of which
approximately $343 million renewed at an average cost of .14%.Included in
first quarter maturities are $100 million of brokered CDs with a cost of
.50%.As noted last quarter, in November of 2012, the Company issued $200
million in brokered CDs as a temporary liquidity source related to the
year-end expiration of the FDIC Transaction Account Guarantee (TAG)
Program.Half of the brokered deposits matured in February of this year with
the other half scheduled to mature in May.

Asset Quality

Non-performing assets (NPAs), which exclude loans that were credit impaired at
the time of the Whitney and People's First acquisitions, totaled $229 million
at March 31, 2013, down $27 million from $256 million at December 31,
2012.Non-performing assets as a percent of total loans, foreclosed and
surplus real estate (ORE) and other foreclosed assets was 1.98% at March 31,
2013, compared to 2.19% at December 31, 2012.The decrease in overall NPAs
during the first quarter reflects a net reduction of $22.4 million in ORE
properties during the first quarter and a $4.4 million reduction in
non-performing loans.

The Company's total allowance for loan losses was $137.8 million at March 31,
2013, compared to $136.2 million at December 31, 2012. The ratio of the
allowance to period-end loans was 1.20% at March 31, 2013, up slightly from
1.18% at year-end 2012.The allowance maintained on the originated portion of
the loan portfolio totaled $75.5 million, or 1.02% of related loans, at March
31, 2013, down from $78.8 million, or 1.11%, at December 31, 2012.The
allowance on originated loans decreased $3.3 million, primarily due to
charge-offs taken against impaired loan reserves. Additionally, the movement
of problem credits into impaired status slowed during the first quarter
reflecting in part the impact of the bulk sale strategy executed in the fourth
quarter of 2012.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.

As detailed last quarter, at the end of 2012 the Company completed a bulk sale
of loans with a net book value of approximately $40 million.The sale added
approximately $13.7 million to the provision for loan losses, and
approximately $16.2 million to net charge-offs in the fourth quarter of 2012.

Net charge-offs from the non-covered loan portfolio were $6.6 million, or .23%
of average total loans on an annualized basis in the first quarter of 2013
compared to $28.0 million, or .97% of average total loans in the fourth
quarter of 2012.Excluding the impact of the bulk sale, non-covered net
charge-offs for the fourth quarter of 2012, were $11.8 million, or .41% of
average total loans.The $5.2 million reduction in net charge-offs in the
first quarter of 2013 compared to the fourth quarter of 2012 (excluding the
impact of the bulk loan sale) reflects both a lower level of gross charge-offs
and a higher than normal level of recoveries.Management does not expect this
higher level of recoveries to continue.

Hancock recorded a total provision for loan losses for the first quarter of
2013 of $9.6 million, down from $28.1 million in the fourth 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 was $3.0 million in the first quarter of 2013, compared to $14.2 million
in the fourth quarter of 2012, excluding the impact of the bulk sale.This
decrease mainly reflects the lower level of non-covered net charge-offs noted
above and the impact from the slowdown in newly identified impaired loans
noted above.Management does not expect to maintain this lower level of
non-covered provision in the near term.

During the first quarter of 2013 the Company recorded an $8.5 million
impairment on certain pools of covered loans, with a related increase of $1.9
million in the Company's FDIC loss share receivable.Approximately $6.5
million of the impairment relates to changes in the estimated timing of cash
flows.The remaining $2.0 million reflects increased credit losses and is
largely offset by additional expected FDIC loss share claims.The net
provision from the covered portfolio was $6.6 million in the first quarter of
2013 compared to $.2 million for the fourth quarter of 2012.

Net Interest Income

Net interest income (TE) for the first quarter of 2013 was $176.7 million,
down $6.1 million from the fourth quarter of 2012.Average earning assets were
$16.5 billion in the first quarter of 2013, up $272 million from the fourth
quarter of 2012.Approximately $3.0 million of the decline was related to
having 2 fewer days in the first quarter of 2013 compared to the fourth
quarter of 2012.

The net interest margin (TE) was 4.32% for the first quarter of 2013, down 16
basis points (bps) from 4.48% in the fourth quarter of 2012.The core margin
of 3.41% (reported net interest income (TE) excluding total net purchase
accounting adjustments, annualized, as a percent of total earning assets)
compressed approximately 20bps during the first quarter, mainly from a decline
in the core yield on the loan portfolio of 15bps.The margin was favorably
impacted during the quarter by the investment of approximately $1.0 billion of
excess liquidity earning 25bps into securities yielding approximately
1.65%.The majority of the transactions were completed in late February 2013,
with a full quarter's impact from the change in mix to be reflected in second
quarter results.

The reported margin was also impacted in the first quarter of 2013 by
approximately $7.5 million of higher than expected loan accretion related to
significant cash collections on certain acquired loan pools with zero carrying
value.As noted previously, 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 5-10 bps of
compression in the core margin in the near term.All else equal, and adjusting
for the volatility noted above related to loan accretion, management also
anticipates compression in the reported margin of 10-20 bps in the near term.

Included in the slide presentation referenced below, is additional information
on expected future levels of purchase accounting adjustments.

Non-interest Income

Non-interest income totaled $60.2 million for the first quarter of 2013, down
$4.7 million, or 7%, from the fourth quarter of 2012.Included in the fourth
quarter of 2012 was $.6 million of securities transaction gains.

Service charges on deposits totaled $19.0 million for the first quarter of
2013, down $1.2 million from $20.2 million in the fourth quarter of 2012.The
linked-quarter decline reflects the impact of one less business day and higher
average personal deposit account balances in the first quarter, with higher
seasonal holiday activity in the fourth quarter of 2012.

Fees from secondary mortgage operations totaled $4.4 million for the first
quarter of 2013, down $.8 million, or 15%, linked-quarter.The decrease
reflects a slowdown in the volume of mortgage production during the first
quarter of 2013.

Linked-quarter changes in trust, insurance, and investment and annuity fees
reflect the volatility and seasonality of those lines of business

Non-interest Expense & Taxes

Non-interest expense for the first quarter of 2013 totaled $159.6 million, up
$1.7 million, or 1%, from the fourth quarter of 2012.

Total personnel expense was $87.9 million in the first quarter of 2013, up
slightly from $87.4 million in the fourth quarter of 2012.Other non-interest
expense totaled $46.5 million for the first quarter of 2013, up $1.4 million
from the fourth quarter of 2012.The increase in both line items, reflect, in
part, beginning of the year seasonality in certain categories.

Amortization of intangibles totaled $7.6 million during the first quarter of
2013 compared to $7.7 million in the fourth quarter of 2012.

The effective income tax rate for the first quarter of 2013 was 25%, up from
20% in the fourth quarter of 2012.The linked-quarter increase is mainly
related to additional new markets tax credits and historical rehabilitation
tax credits that lowered the rate for the fourth quarter of 2012.As noted
earlier, an additional tax credit also impacted the overall tax rate for the
first quarter of 2013.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 March 31, 2013, up almost
$24 million from year-end 2012.The Company continued to build its strong
capital base, and the tangible common equity (TCE) ratio improved 37bps to
9.14% at March 31, 2013.Management continues to review strategic
opportunities presented by Hancock's strong capital position, including stock
buybacks, organic growth, acquisitions or increased dividends.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, April 26, 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
first 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 May 2, 2013 by dialing (855) 859-2056 or (404) 537-3406,
passcode 32358400.

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, Mississippi, New Orleans and Baton Rouge,
Louisiana, and Orlando, Florida; and Harrison Finance Company.Additional
information is available at www.hancockbank.com and www.whitneybank.com.

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 reductions in non-interest expense or other cost
savings, projected tax rates, future profitability, improvements in expense to
revenue (efficiency) ratio, 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
                                             3/31/2013  12/31/2012 3/31/2012
Per Common Share Data                                             
                                                                 
Earnings per share:                                               
Basic                                        $0.56      $0.55      $0.22
Diluted                                      $0.56      $0.54      $0.21
Operating earnings per share: (a)                                 
Basic                                         $0.56      $0.54      $0.48
Diluted                                      $0.56      $0.54      $0.47
Cash dividends per share                     $0.24      $0.24      $0.24
Book value per share (period-end)             $29.18     $28.91     $28.02
Tangible book value per share (period-end)    $19.67     $19.27     $17.99
Weighted average number of shares:                                
Basic                                        84,871    84,798    84,741
Diluted                                      84,972    85,777    85,442
Period-end number of shares                   84,882    84,848    84,770
Market data:                                                      
High sales price                             $33.59     $32.50     $36.73
Low sales price                              $29.37     $29.47     $31.56
Period end closing price                    $30.92     $31.73     $35.51
Trading volume                               29,469    20,910    32,423
                                                                 
                                                                 
Other Period-end Data                                             
                                                                 
FTE headcount                                 4,197     4,235      4,752
Tangible common equity                        $1,669,435 $1,634,833 $1,524,985
Tier I capital                                $1,708,878 $1,666,042 $1,513,485
Goodwill                                     $625,675   $628,877   $647,216
Amortizing intangibles                        $181,853   $189,409   $202,772
                                                                 
Performance Ratios                                                
                                                                 
Return on average assets                      1.03%      0.99%      0.39%
Return on average assets (operating) (a)      1.03%      0.98%      0.85%
Return on average common equity              8.05%      7.67%      3.13%
Return on average common equity (operating)   8.05%      7.60%      6.86%
(a)
Return on average tangible common equity      12.04%     11.58%     4.91%
Return on average tangible common equity      12.04%     11.48%     10.76%
(operating) (a)
Tangible common equity ratio                 9.14%      8.77%      8.27%
Earning asset yield (TE)                      4.60%      4.76%      4.81%
Total cost of funds                           0.28%      0.28%      0.38%
Net interest margin (TE)                      4.32%      4.48%      4.43%
Efficiency ratio (b)                          64.17%     60.78%     67.81%
Allowance for loan losses as a percent of     1.20%      1.18%      1.28%
period-end loans
Allowance for loan losses to non-performing                       
loans + accruing loans
90 days past due                             87.34%     81.40%     105.37%
Average loan/deposit ratio                    75.30%     76.29%     73.10%
Noninterest income excludingsecurities
transactions as a percent of total revenue   25.40%     26.02%     25.54%
(TE)

(a) Excludes tax-effected merger related expenses 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, and merger related expenses.                                 

                                                                
Hancock Holding Company                                        
Financial Highlights                                           
(amounts in thousands)                                         
(unaudited)                                                    
                                                                
                                          Three Months Ended
                                          3/31/2013   12/31/2012  3/31/2012
Asset Quality Information                                        
                                                                
Non-accrual loans (c)                      $115,289    $121,837    $111,378
Restructured loans (d)                     34,390      32,215      19,926
Total non-performing loans                 149,679     154,052     131,304
ORE and foreclosed assets                  79,627      102,072     156,332
Total non-performing assets                $229,306    $256,124    $287,636
Non-performing assets as a percent of      1.98%       2.19%       2.55%
loans, ORE and foreclosed assets
Accruing loans 90 days past due (c)        $8,076      $13,244     $3,780
Accruing loans 90 days past due as a       0.07%       0.11%       0.03%
percent of loans
Non-performing assets + accruing loans 90
days past dueto loans, ORE and foreclosed 2.05%       2.31%       2.58%
assets
                                                                
Net charge-offs - non-covered              $6,633      $28,038     $7,054
Net charge-offs - covered                  3,222      3,230       16,429
Net charge-offs - non-covered as a percent 0.23%       0.97%       0.25%
of average loans
                                                                
Allowance for loan losses                  $137,777    $136,171    $142,337
Allowance for loan losses as a percent of  1.20%       1.18%       1.28%
period-end loans
Allowance for loan losses to
non-performing loans + accruing loans90   87.34%      81.40%      105.37%
days past due
                                                                
Provision for loan losses                  $9,578      $28,051     $10,015
                                                                
Allowance for Loan Losses                                        
                                                                
Beginning Balance                          $136,171    $135,591    $124,881
Provision for loan losses before FDIC     8,484       3,996       32,552
benefit - covered loans
Benefit attributable to FDIC loss share   (1,883)    (3,797)    (30,924)
agreement
Provision for loan losses - non-covered   2,977       27,852      8,387
loans (e)
Net provision for loan losses              9,578       28,051      10,015
Increase in FDIC loss share receivable    1,883       3,797       30,924
Charge-offs - non-covered (e)              11,237      30,172      13,186
Recoveries - non-covered                   (4,604)    (2,134)     (6,132)
Net charge-offs - covered                 3,222       3,230       16,429
Net charge-offs                            9,855       31,268      23,483
Ending Balance                             $137,777    $136,171    $142,337
                                                                
                                                                
Net Charge-off Information                                      
                                                                
Net charge-offs - non-covered:                                   
Commercial/real estate loans               $4,304      $23,090     $4,278
Residential mortgage loans                 (352)      1,372       721
Consumer loans                             2,681       3,576       2,055
Total net charge-offs - non-covered       $6,633      $28,038     $7,054
                                                                
Average loans:                                                   
Commercial/real estate loans               $8,277,057  $8,262,736  $8,017,691
Residential mortgage loans                 1,626,629   1,613,919   1,549,131
Consumer loans                             1,626,242   1,667,134   1,626,052
Total average loans                        $11,529,928 $11,543,789 $11,192,874
                                                                
Net charge-offs - non-covered to average                         
loans:
Commercial/real estate loans               0.21%       1.11%       0.21%
Residential mortgage loans                 (0.09)%     0.34%       0.19%
Consumer loans                             0.67%       0.85%       0.51%
Total net charge-offs - non-covered to     0.23%       0.97%       0.25%
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 $21.1 million, $15.8 million, and
$5.2 million in non-accrual loans at 3/31/13, 12/31/12, and 3/31/12,        
respectively.Total excludes acquired credit-impaired loans.
(e) In fourth quarter 2012, 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
                                               3/31/2013 12/31/2012 3/31/2012
Income Statement                                                   
                                                                  
Interest income                                $185,272  $191,140   $191,716
Interest income (TE)                            187,998   194,075    194,665
Interest expense                                11,257    11,275     15,428
Net interest income (TE)                        176,741   182,800    179,237
Provision for loan losses                       9,578     28,051     10,015
Noninterest income excluding                                      
securities transactions                       60,187    64,308     61,494
Securities transactions gains/(losses)          --       623        12
Noninterest expense                            159,602   157,920    205,463
Income before income taxes                      65,022    58,825     22,316
Income tax expense                              16,446    11,866     3,821
Net income                                      $48,576   $46,959    $18,495
                                                                  
Merger-related expenses                        --       --        33,913
Securities transactions gains/(losses)          --       623        12
Taxes on adjustments                            --       (218)     11,865
Operating income (f)                            $48,576   $46,554    $40,531
                                                                  
Difference between interest income and interest $2,726    $2,935     $2,949
income (TE)
Provision for loan losses                       9,578     28,051     10,015
Merger-related expenses                        --       --        33,913
Less securities transactions gains/(losses)     --       623        12
Income tax expense                              16,446    11,866     3,821
Pre-tax, pre-provision profit (PTPP) (g)        $77,326   $89,188    $69,181
                                                                  
Noninterest Income and Noninterest Expense                         
                                                                  
Service charges on deposit accounts             $19,015   $20,232    $16,274
Trust fees                                      8,692     8,273      8,738
Bank card fees                                 7,483     7,591      8,464
Insurance fees                                  3,994     3,588      3,477
Investment & annuity fees                       4,577     4,743      4,415
ATM fees                                        3,575     3,935      4,334
Secondary mortgage market operations            4,383     5,160      4,002
Other income                                    8,468     10,786     11,790
Noninterest income excluding securities         $60,187   $64,308    $61,494
transactions
Securities transactions gains/(losses)          --       623        12
Total noninterest income including securities   $60,187   $64,931    $61,506
transactions
                                                                  
Personnel expense                               $87,927   $87,358    $91,871
Occupancy expense (net)                         12,326    12,683     14,401
Equipment expense                               5,301     5,051      5,877
Other operating expense                         46,493    45,098     51,097
Amortization of intangibles                     7,555     7,730      8,304
Merger-related expenses                         --       --        33,913
Total noninterest expense                      $159,602  $157,920   $205,463

(f) Net income less tax-effected merger 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, and securities transactions. Management believes that
PTPP profit is a useful financial measure because it enables investors and
others to assess the Company's ability to generate capital to cover credit
losses through a credit cycle.

                                                                
Hancock Holding Company                                        
Financial Highlights                                           
(amounts in thousands)                                         
(unaudited)                                                    
                                                                
                                          Three Months Ended
                                          3/31/2013   12/31/2012  3/31/2012
Period-end Balance Sheet                                         
                                                                
Commercial non-real estate loans          $4,425,286  $4,433,288  $3,754,592
Construction and land development loans   992,820     989,306     1,285,214
Commercial real estate loans              2,873,403   2,923,094   2,952,569
Residential mortgage loans                 1,587,519   1,577,944   1,511,349
Consumer loans                             1,603,734   1,654,170   1,626,549
Total loans                                11,482,762  11,577,802  11,130,273
Loans held for sale                        34,813      50,605      42,484
Securities                                 4,662,279   3,716,460   4,393,845
Short-term investments                     475,677     1,500,188   1,008,505
Earning assets                             16,655,531  16,845,055  16,575,107
Allowance for loan losses                  (137,777)   (136,171)   (142,337)
Other assets                               2,546,369   2,755,601   2,858,327
Total assets                               $19,064,123 $19,464,485 $19,291,097
                                                                
Noninterest bearing deposits               $5,418,463  $5,624,127  $5,242,973
Interest bearing transaction and savings   6,017,735   6,038,003   5,995,622
deposits
Interest bearing public fund deposits      1,528,790   1,580,260   1,543,867
Time deposits                              2,288,363   2,501,798   2,650,305
Total interest bearing deposits            9,834,888   10,120,061  10,189,794
Total deposits                            15,253,351  15,744,188  15,432,767
Other borrowed funds                       1,116,457   1,035,722   1,210,561
Other liabilities                          217,215     231,297     272,566
Common shareholders' equity                2,477,100   2,453,278   2,375,203
Total liabilities & common equity          $19,064,123 $19,464,485 $19,291,097
                                                                
Capital Ratios                                                   
                                                                
Common shareholders' equity                $2,477,100  $2,453,278  $2,375,203
Tier 1 capital (h)                         1,708,878   1,666,042   1,513,485
Tangible common equity ratio              9.14%       8.77%       8.27%
Common equity (period-end) as a percent of 12.99%      12.60%      12.31%
total assets (period-end)
Leverage (Tier 1) ratio (h)                9.37%       9.10%       8.18%
Tier 1 risk-based capital ratio (h)        13.03%      12.65%      11.52%
Total risk-based capital ratio (h)         14.69%      14.28%      13.76%

(h) estimated for most recent period-end

                                                                
Hancock Holding Company                                        
Financial Highlights                                           
(amounts in thousands)                                         
(unaudited)                                                    
                                                                
                                          Three Months Ended
                                          3/31/2013   12/31/2012  3/31/2012
Average Balance Sheet                                            
                                                                
Commercial non-real estate loans          $4,406,207  $4,316,455  $3,780,412
Construction and land development loans   975,301     1,035,401   1,267,192
Commercial real estate loans              2,895,549   2,910,880   2,970,087
Residential mortgage loans                 1,626,629   1,613,919   1,549,131
Consumer loans                             1,626,242   1,667,134   1,626,052
Total loans (i)                            11,529,928  11,543,789  11,192,874
Securities (j)                             3,929,255   3,732,815   4,194,483
Short-term investments                     1,058,519   969,037     852,843
Earning assets                             16,517,702  16,245,641  16,240,200
Allowance for loan losses                  (137,110)   (136,254)   (125,072)
Other assets                               2,772,059   2,855,565   3,078,392
Total assets                               $19,152,651 $18,964,952 $19,193,520
                                                                
Noninterest bearing deposits               $5,314,648  $5,420,081  $5,359,504
Interest bearing transaction and savings   5,982,345   5,930,964   5,625,963
deposits
Interest bearing public fund deposits      1,608,925   1,332,163   1,531,110
Time deposits                              2,406,772   2,448,694   2,795,935
Total interest bearing deposits            9,998,042   9,711,821   9,953,008
Total deposits                             15,312,690  15,131,902  15,312,512
Other borrowed funds                       1,160,110   1,168,771   1,237,849
Other liabilities                          231,841     229,100     268,255
Common shareholders' equity                2,448,010   2,435,179   2,374,904
Total liabilities & common equity          $19,152,651 $18,964,952 $19,193,520

(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)  3/31/2013 12/31/2012 3/31/2012
^k
Non-accrual loans (l) (m)                     $82,194   $87,651    $100,192
Restructured loans (n)                        28,689    27,451     19,926
Total non-performing loans                    110,883   115,102    120,118
ORE and foreclosed assets (o)                 55,545    75,771     107,804
Total non-performing assets                   $166,428  $190,873   $227,922
Non-performing assets as a percent of         2.24%     2.66%      4.10%
loans, ORE and foreclosed assets
Accruing loans 90 days past due              $6,113    $7,737     $2,524
Accruing loans 90 days past due as a          0.08%     0.11%      0.05%
percent of loans
Non-performing assets + accruing loans 90
days past due to loans, ORE and foreclosed    2.32%     2.77%      4.15%
assets
Allowance for loan losses (p) (q)             $75,466   $78,774    $84,578
Allowance for loan losses as a percent of     1.02%     1.11%      1.55%
period-end loans
Allowance for loan losses to nonperforming    64.50%    64.13%     68.96%
loans + accruing loans 90 days past due

(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 $4,221, $4,100, and                 
$9,377.
(m) Excludes non-covered acquired performing loans at             
fair value of $28,874, $30,087, and $1,809.
(n) Excludes non-covered acquired performing loans at             
fair value of $5,701, $4,764, and $0.
(o) Excludes covered foreclosed assets of $24,082,                
$26,301, and $48,528.
(p) Excludes allowance for loan losses recorded on
covered acquired loans of $61,868, $56,609, and                   
$57,759.
(q) Excludes allowance for loan losses recorded on
non-covered acquired-performing loans of $443, $788               
and $0.

                          
                          12/31/2013
                          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
                                                               
                          3/31/2013
                          Originated Acquired Loans Covered Loans Total
                           Loans      (r)            (s)
Commercial non-real estate $2,900,855 $1,500,137     $24,294       $4,425,286
loans
Construction and land      697,989    269,727        25,104        992,820
development loans
Commercial real estate     1,562,383  1,226,854      84,166        2,873,403
loans
Residential mortgage loans 886,232    449,500        251,787       1,587,519
Consumer loans             1,331,477  180,632        91,625        1,603,734
Total loans                $7,378,936 $3,626,850     $476,976      $11,482,762
Change in loan balance     $271,715   ($327,908)     ($38,847)     ($95,040)
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
                3/31/2013                  12/31/2012                 3/31/2012
                Interest Volume      Rate  Interest Volume      Rate  Interest Volume      Rate
                                                                                   
Average Earning                                                                     
Assets
Commercial &
real estate      $113,296 $8,277,057  5.55% $113,004 $8,262,736  5.44% $112,509 $8,017,691  5.64%
loans (TE)
Residential      25,680  1,626,629  6.31% 27,998  1,613,919  6.94% 26,422  1,549,131  6.82%
mortgage loans
Consumer loans   26,501  1,626,242  6.61% 28,593  1,667,134  6.82% 28,562  1,626,052  7.05%
Loan fees & late 568     --         0.00% 3,098   --         0.00% 799     --         0.00%
charges
Total loans     166,045 11,529,928 5.83% 172,693 11,543,789 5.95% 168,292 11,192,874 6.04%
(TE)
                                                                                   
US Treasury      2       150        4.68% 2       150        4.65% 2       150        4.67%
securities
US agency        15      5,429      1.09% 49      18,165     1.08% 1,262   219,287    2.30%
securities
CMOs             7,091   1,534,840  1.85% 7,204   1,577,165  1.83% 6,783   1,361,132  1.99%
Mortgage backed  11,605  2,163,544  2.15% 10,475  1,891,704  2.22% 14,406  2,321,703  2.48%
securities
Municipals (TE)  2,554   216,974    4.71% 2,942   238,733    4.93% 3,267   284,113    4.60%
Other securities 41      8,318      1.96% 94      6,898      5.43% 126     8,098      6.21%
Total
securities (TE)  21,308  3,929,255  2.17% 20,766  3,732,815  2.21% 25,846  4,194,483  2.46%
(t)
                                                                                   
Total
short-term       645     1,058,519  0.25% 616     969,037    0.25% 527     852,843    0.25%
investments
                                                                                   
Average earning
assets yield     $187,998 $16,517,702 4.60% $194,075 $16,245,641 4.76% $194,665 $16,240,200 4.81%
(TE)
                                                                                   
Interest-bearing                                                                    
Liabilities
Interest-bearing
transaction and  $1,659   $5,982,345  0.11% $1,719   $5,930,964  0.12% $2,181   $5,625,963  0.16%
savings
deposits
Time deposits    4,086   2,406,772  0.69% 4,507   2,448,694  0.73% 6,889   2,795,935  0.99%
Public Funds     1,000   1,608,925  0.25% 861     1,332,163  0.26% 1,192   1,531,110  0.31%
Total interest  6,745   9,998,042  0.27% 7,087   9,711,821  0.29% 10,262  9,953,008  0.41%
bearing deposits
                                                                                   
Total           4,512   1,160,110  1.58% 4,188   1,168,771  1.43% 5,166   1,237,849  1.68%
borrowings
                                                                                   
Total interest
bearing          $11,257  $11,158,152 0.41% $11,275  $10,880,592 0.41% $15,428  $11,190,857 0.55%
liabilities cost
                                                                                   
Net
interest-free            5,359,550               5,365,049               5,049,343  
funding sources
                                                                                   
Total Cost of    $11,257  $16,517,702 0.28% $11,275  $16,245,641 0.28% $15,428  $16,240,200 0.38%
Funds
                                                                                   
Net Interest     $176,741            4.19% $182,800            4.35% $179,237            4.26%
Spread (TE)
                                                                                   
Net Interest     $176,741 $16,517,702 4.32% $182,800 $16,245,641 4.48% $179,237 $16,240,200 4.43%
Margin (TE)

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

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

company logo
 
Press spacebar to pause and continue. Press esc to stop.