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Hancock Reports Second Quarter 2013 Financial Results



Hancock Reports Second Quarter 2013 Financial Results

GULFPORT, Miss., July 25, 2013 (GLOBE NEWSWIRE) -- Hancock Holding Company
(Nasdaq:HBHC) today announced its financial results for the second quarter of
2013. Net income was $46.9 million, or $.55 per diluted common share, compared
to $48.6 million, or $.56, in the first quarter of 2013. Net income was $39.3
million, or $.46 per diluted common share, in the second quarter of 2012,
which included pre-tax merger-related costs of $11.9 million.

  Highlights of the Company's second quarter of 2013 results:

    * Approximately $245 million linked-quarter net loan growth, or 9%
      annualized, and $760 million, or 7%, year-over-year loan growth (each
      excluding the FDIC-covered portfolio).
    * Core net interest income (TE) and net interest margin (NIM) relatively
      stable, growth in fee income, led to improved core revenue.
    * Continued improvement in overall asset quality metrics.
    * Initiated 5% common stock buyback in May through an accelerated share
      repurchase (ASR) program, receiving 2.8 million shares to-date.

  (The company defines its core results as reported results less the impact of
  net purchase accounting adjustments.)

"The second quarter's performance reflected an improvement in our core
results, a trend we expect to build on in the future," said Hancock's
President and Chief Executive Officer Carl J. Chaney. "Coupled with the
ongoing implementation of the expense and efficiency initiative announced last
quarter, we believe our Company is becoming better positioned to operate in
both today's economic environment as well as an eventual sustained, positive
turn in the overall economy." 

Return on average assets (ROA) was 0.99% for the second quarter of 2013,
slightly down from 1.03% in the first quarter of 2013. ROA was 1.00% in the
second quarter a year ago on an operating basis, which excludes tax-effected
merger-related expenses in that period. 

Total assets were $18.9 billion at June 30, 2013, a decrease of less than 1%
from $19.1 billion at March 31, 2013. 

Loans

Total loans at June 30, 2013 were $11.7 billion, up $199 million from March
31, 2013. Excluding the FDIC-covered portfolio, which declined $46 million
during the second quarter of 2013, total loans increased $245 million, or 2.2%
linked-quarter. The largest component of net growth during the quarter was in
the commercial and industrial (C&I) portfolio which was up $228 million
linked-quarter. Residential mortgage loans increased approximately $30
million, while construction and land development (C&D) loans continued to
decline during the quarter. New loan activity in all markets across the
Company's footprint contributed to the solid loan growth this quarter. 

For the second quarter of 2013, average total loans were $11.6 billion, up $93
million from the first quarter of 2013. 

Excluding the FDIC-covered portfolio, total loans were up $760 million, or 7%,
from a year earlier.

Deposits

Total deposits at June 30, 2013 were $15.2 billion, down $97 million, or less
than 1%, from March 31, 2013. Average deposits for the second quarter of 2013
were $15.2 billion, down $101 million, or less than 1%, from the first quarter
of 2013. 

Noninterest-bearing demand deposits (DDAs) totaled $5.3 billion at June 30,
2013, down $78 million, or 1%, compared to March 31, 2013. The decline mainly
reflects the movement from DDAs to sweep time deposit products for a few
commercial customers. DDAs comprised 35% of total period-end deposits at June
30, 2013. 

Time deposits (CDs) totaled $2.4 billion at June 30, 2013, up $151 million, or
7%, from March 31, 2013. Excluding the impact from the $253 million increase
in sweep time deposit product balances, CDs were down $102 million, or 5%,
reflecting mainly the impact of the low rate environment for reinvestment
opportunities on renewals.

Interest-bearing public fund deposits totaled $1.4 billion at June 30, 2013,
down $118 million, or 8%, linked-quarter. As noted previously, public fund
deposits typically reflect higher balances at year-end with subsequent
reductions beginning in the first quarter and continuing into the second
quarter.

Interest-bearing transaction and savings deposits totaled $6.0 billion at June
30, 2013, down $52 million, or less than 1%, compared to March 31, 2013. 

Asset Quality

Non-performing assets (NPAs) totaled $216 million at June 30, 2013, down $13
million from $229 million at March 31, 2013. Non-performing assets as a
percent of total loans, foreclosed and surplus real estate (ORE) and other
foreclosed assets was 1.84% at June 30, 2013, compared to 1.98% at March 31,
2013. The decrease in overall NPAs during the second quarter reflects a net
reduction of $7.4 million in ORE properties and a $5.4 million reduction in
non-performing loans. 

Future levels of ORE may be volatile in the near term due to ongoing activity
related to the covered portfolio and the anticipated closings of certain bank
locations in connection with the efficiency initiative.

The Company's total allowance for loan losses was $138.0 million at June 30,
2013, compared to $137.8 million at March 31, 2013.  The ratio of the
allowance to period-end loans was 1.18% at June 30, 2013, down slightly from
1.20% at March 31, 2013. The allowance maintained on the originated portion of
the loan portfolio totaled $76.4 million, or 0.93% of related loans, at June
30, 2013, up from $75.5 million, or 1.02%, at March 31, 2013.   

Net charge-offs from the non-covered loan portfolio were $7.0 million, or
0.24% of average total loans on an annualized basis in the second quarter of
2013 compared to $6.6 million, or 0.23% of average total loans in the first
quarter of 2013. 

During the second quarter of 2013, Hancock recorded a total provision for loan
losses of $8.3 million, down from $9.6 million in the first quarter of
2013. The provision for non-covered loans was $7.9 million in the second
quarter of 2013, compared to $3.0 million in the first quarter of 2013. The
increase was related in part to the increased volume of new loans originated
during the second quarter. 

The Company recorded $1.4 million of impairment on certain pools of covered
loans during the second quarter of 2013, with a related increase of $1.0
million in the Company's FDIC loss share receivable. The net provision from
the covered portfolio was $.4 million in the second quarter of 2013 compared
to $6.6 million for the first quarter of 2013. As a reminder, the first
quarter provision for covered loans included approximately $6.5 million of
impairment related to changes in the estimated timing of cash flows which does
not result in an offsetting impact on the loss share receivable. 

Net Interest Income

Net interest income (TE) for the second quarter of 2013 was $171.8 million,
down $4.9 million from the first quarter of 2013. Average earning assets were
$16.5 billion in the second quarter of 2013, virtually unchanged from the
first quarter of 2013. 

Approximately $4.4 million of the decline was related to a lower level of
total purchase-accounting loan accretion on acquired loans in the second
quarter, mainly related to the volatility from excess cash recoveries. The
slide presentation referenced below includes detailed information on expected
loan accretion and excess cash recoveries. Approximately $7.5 million ($.06
per diluted common share) of excess cash recoveries were included in the first
quarter's results, while approximately $3.1 million ($.02 per diluted common
share) was included in the second quarter's results. Excess cash recoveries
include cash collected on certain zero carrying value acquired loan pools. 

The net interest margin (TE) was 4.17% for the second quarter of 2013, down 15
basis points (bps) from 4.32% in the first quarter of 2013. The core margin of
3.38% (reported net interest income (TE) excluding total net purchase
accounting adjustments, annualized, as a percent of average earning assets)
compressed approximately 3 bps during the second quarter of 2013, mainly
related to the continued decline in the core loan yield. The margin was
favorably impacted from the investment of excess liquidity discussed last
quarter and a 3 bps reduction in the total cost of funds. 

The slide presentation referenced below includes additional information on
historical and expected future levels of purchase accounting adjustments.

Noninterest Income

Noninterest income totaled $63.9 million for the second quarter of 2013, up
$3.7 million, or 6%, from the first quarter of 2013. 

Service charges on deposits totaled $19.9 million for the second quarter of
2013, up $.8 million, or 4%, from the first quarter of 2013. The
linked-quarter increase partly reflects the impact of two additional business
days in the second quarter.

Trust, investment and annuity fees, and insurance fees totaled $19.8 million,
up $2.6 million, or 15%, from the first quarter of 2013. The linked-quarter
increase reflects some seasonality in these lines of business, in addition to
the impact of higher stock market values. 

Bankcard fees and ATM fees totaled $11.4 million, up $.3 million, or 3%, from
the first quarter of 2013, reflecting additional activity during the second
quarter.

Fees from secondary mortgage operations totaled $4.1 million for the second
quarter of 2013, down $.2 million, or 6%, linked-quarter. 

Noninterest Expense & Taxes

Noninterest expense for the second quarter of 2013 totaled $162.3 million, up
$2.6 million, or 2%, from the first quarter of 2013. The overall increase is
mainly related to a $2.6 million increase in other real estate (ORE)
expense. ORE expense, included in other operating expense, totaled $3.4
million in the second quarter of 2013, compared to $.7 million in the first
quarter of 2013.

Total personnel expense, the largest component of the Company's expense base,
was $87.6 million in the second quarter of 2013, down slightly from $87.9
million in the first quarter of 2013. 

Despite the increase in overall expenses, the Company remains on track to
achieve its efficiency and expense reduction target for the first quarter of
2014. In May of 2013, the Company announced the planned closing of
approximately 40 branch locations across its 5-state footprint as part of the
expense reduction initiative. As discussed below, the Company announced
earlier this week the sale of 10 of these 40 branch locations. A significant
portion of the cost savings targeted for the first quarter of 2014 will be
derived from these closures and sales. Currently the Company plans to complete
the majority of branch closings on August 30, 2013, with the remaining
branches scheduled to close or be sold by year-end. Management expects
one-time costs associated with the branch closures and sales, to be booked in
the third quarter of 2013. These costs are expected to be lower than the
previous guidance of between $18 and $22 million. The branch sales, which are
subject to regulatory approvals and certain closing conditions, will be
reflected in Hancock's fourth quarter 2013 financial results. The buyers
expect to acquire approximately $54 million in loans and $60 million in
deposits booked in the 10 retail branches. 

The effective income tax rate for the second quarter of 2013 was 25%,
unchanged from the first quarter of 2013. Management expects the effective tax
rate to approximate 26-27% for 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 $2.3 billion at June 30, 2013, down almost
$132 million from March 31, 2013. The tangible common equity (TCE) ratio
declined 62 bps to 8.52% at June 30, 2013. The linked-quarter decline mainly
reflects the $115 million (63 bps) used in May of 2013 to execute an
accelerated share repurchase (ASR) program in conjunction with the previously
announced program to repurchase up to 5% of the Company's outstanding common
stock. Additionally, while the Company continued to add to its strong capital
base through retained earnings, accumulated other comprehensive income (a
component of equity) declined $47 million (26 bps) from March 31, 2013. The
decline mainly reflects the impact of increased market rates on the valuation
of the securities portfolio.

Management continues to review the strategic opportunities presented by
Hancock's strong capital position, including additional stock buybacks,
organic growth, acquisitions or increased dividends. Additional capital ratios
are included in the financial tables.

Near Term EPS Guidance

Management expects earnings to remain flat to slightly down from current
levels for the remainder of 2013, as expected declines and volatility in
accretion levels on the acquired portfolios continue to impact reported
results. 

Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 9:00 a.m.
Central Time on Friday, July 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 second 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 August 1, 2013 by dialing (855) 859-2056 or (404)
537-3406, passcode 14843195. 

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               Six Months Ended 
                        6/30/2013  3/31/2013  6/30/2012  6/30/2013  6/30/2012
Per Common Share Data                                                
                                                                     
Earnings per share:                                                  
Basic                   $0.55      $0.56      $0.46      $1.11      $0.68
Diluted                 $0.55      $0.56      $0.46      $1.11      $0.67
Operating earnings per                                               
share: (a)
Basic                   $0.55      $0.56      $0.55      $1.11      $1.03
Diluted                 $0.55      $0.56      $0.55      $1.11      $1.02
Cash dividends per      $0.24      $0.24      $0.24      $0.48      $0.48
share
Book value per share    $28.57     $29.18     $28.30     $28.57     $28.30
(period-end)
Tangible book value per $18.83     $19.67     $18.46     $18.83     $18.46
share (period-end)
Weighted average number                                              
of shares:
Basic                    83,279     84,871     84,751     84,071     84,742
Diluted                  83,357     84,972     85,500     84,153     85,467
Period-end number of     82,078     84,882     84,774     82,078     84,774
shares
Market data:                                                         
High sales price        $30.93     $33.59     $36.56     $33.59     $36.73
Low sales price         $25.00     $29.37     $27.96     $25.00     $27.96
Period end closing      $30.07     $30.92     $30.44     $30.07     $30.44
price
Trading volume           38,599     29,469     39,310     68,068     71,733
                                                                     
                                                                     
Other Period-end Data                                                
                                                                     
FTE headcount            4,160     4,197      4,456       4,160     4,456
Tangible common equity  $1,545,122 $1,669,435 $1,565,029 $1,545,122 $1,565,029
Tier I capital          $1,622,713 $1,700,115 $1,581,101 $1,622,713 $1,581,101
Goodwill                $625,675   $625,675   $628,877   $625,675   $628,877
Amortizing intangibles  $174,423   $181,853   $205,249   $174,423   $205,249
                                                                     
Performance Ratios                                                   
                                                                     
Return on average       0.99%      1.03%      0.83%      1.01%      0.61%
assets
Return on average       0.99%      1.03%      1.00%      1.01%      0.92%
assets (operating) (a)
Return on average       7.82%      8.05%      6.62%      7.93%      4.88%
common equity
Return on average
common equity           7.82%      8.05%      7.93%      7.93%      7.40%
(operating) (a)
Return on average       11.74%     12.04%     10.24%     11.89%     7.60%
tangible common equity
Return on average
tangible common equity  11.74%     12.04%     12.26%     11.89%     11.52%
(operating) (a)
Tangible common equity  8.52%      9.14%      8.72%      8.52%      8.72%
ratio
Earning asset yield     4.42%      4.60%      4.80%      4.51%      4.80%
(TE)
Total cost of funds     0.25%      0.28%      0.32%      0.27%      0.35%
Net interest margin     4.17%      4.32%      4.48%      4.24%      4.45%
(TE)
Efficiency ratio (b)    65.68%     64.17%     65.67%     64.92%     66.73%
Allowance for loan
losses as a percent of  1.18%      1.20%      1.27%      1.18%      1.27%
period-end loans
Allowance for loan
losses to
non-performing loans +  91.43%     87.34%     104.78%    91.43%     104.78%
accruing loans 90 days
past due
Average loan/deposit    76.41%     75.30%     73.51%     75.86%     73.30%
ratio
Noninterest income
excluding securities
transactions as a       27.11%     25.40%     26.06%     26.25%     25.81%
percent of total
revenue (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                  Six Months Ended 
                   6/30/2013   3/31/2013   6/30/2012   6/30/2013   6/30/2012
Asset Quality                                                       
Information
                                                                    
Non-accrual loans  $110,516    $115,289    $113,384    $110,516    $113,384
(c)
Restructured loans 33,741      34,390      19,518      33,741      19,518
(d)
Total
non-performing     144,257     149,679     132,902     144,257     132,902
loans
ORE and foreclosed 72,235      79,627      138,118     72,235      138,118
assets
Total
non-performing     $216,492    $229,306    $271,020    $216,492    $271,020
assets
Non-performing
assets as a
percent of loans,  1.84%       1.98%       2.42%       1.84%       2.42%
ORE and foreclosed
assets
Accruing loans 90  $6,647      $8,076      $1,443      $6,647      $1,443
days past due (c)
Accruing loans 90
days past due as a 0.06%       0.07%       0.01%       0.06%       0.01%
percent of loans
Non-performing
assets + accruing
loans 90 days past 1.90%       2.05%       2.43%       1.90%       2.43%
due to loans, ORE
and foreclosed
assets
                                                                    
Net charge-offs -  $7,032      $6,633      $10,211     $13,665     $17,265
non-covered
Net charge-offs -  2,026       3,222       3,499       5,248       19,289
covered
Net charge-offs -
non-covered as a   0.24%       0.23%       0.37%       0.24%       0.31%
percent of average
loans
                                                                    
Allowance for loan $137,969    $137,777    $140,768    $137,969    $140,768
losses
Allowance for loan
losses as a        1.18%       1.20%       1.27%       1.18%       1.27%
percent of
period-end loans
Allowance for loan
losses to
non-performing     91.43%      87.34%      104.78%     91.43%      104.78%
loans + accruing
loans 90 days past
due
                                                                    
Provision for loan $8,257      $9,578      $8,025      $17,835     $18,040
losses
                                                                    
Allowance for Loan                                                  
Losses
                                                                    
Beginning Balance  $137,777    $136,171    $142,337    $136,171    $124,881
Provision for loan
losses before FDIC 1,355       8,484       5,146       9,839       37,025
benefit - covered
loans
Benefit
attributable to     (993)       (1,883)     (4,116)     (2,876)     (34,401)
FDIC loss share
agreement
Provision for loan
losses -           7,895       2,977       6,995       10,872      15,416
non-covered loans
Net provision for  8,257       9,578       8,025       17,835      18,040
loan losses
Increase in FDIC
loss share         993         1,883       4,116       2,876       34,401
receivable
Charge-offs -      11,451      11,237      12,711      22,688      22,377
non-covered
Recoveries -        (4,419)    (4,604)     (2,500)     (9,023)     (5,112)
non-covered
Net charge-offs -  2,026       3,222       3,499       5,248       19,289
covered
Net charge-offs    9,058       9,855       13,710      18,913      36,554
Ending Balance     $137,969    $137,777    $140,768    $137,969    $140,768
                                                                    
                                                                    
Net Charge-off                                                      
Information
                                                                    
Net charge-offs -                                                   
non-covered:
Commercial/real    $3,834      $4,304      $5,627      $8,138      $9,906
estate loans
Residential        702         (352)       1,846       350         2,567
mortgage loans
Consumer loans     2,496       2,681       2,738       5,177       4,792
Total net
charge-offs -      $7,032      $6,633      $10,211     $13,665     $17,265
non-covered
                                                                    
Average loans:                                                      
Commercial/real    $8,418,140  $8,284,408  $7,946,781  $8,351,642  $7,982,217
estate loans
Residential        1,625,672   1,626,629   1,548,803   1,626,148   1,548,945
mortgage loans
Consumer loans     1,579,397   1,618,891   1,644,532   1,599,036   1,635,334
Total average      $11,623,209 $11,529,928 $11,140,116 $11,576,826 $11,166,496
loans
                                                                    
Net charge-offs -
non-covered to                                                      
average loans:
Commercial/real    0.18%       0.21%       0.28%       0.20%       0.25%
estate loans
Residential        0.17%       (0.09)%     0.48%       0.04%       0.33%
mortgage loans
Consumer loans     0.63%       0.67%       0.67%       0.65%       0.59%
Total net
charge-offs -      0.24%       0.23%       0.37%       0.24%       0.31%
non-covered to
average loans
 

(c) Non-accrual loans and accruing loans past due 90 days or more do not
include non-accrual restructured loans and 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 $22.2 million, $21.1 million, and $9.7
million in non-accrual loans at 6/30/13, 3/31/13, and 6/30/12,
respectively. Total excludes acquired credit-impaired loans.

 
 
 Hancock Holding Company 
 Financial Highlights 
 (amounts in thousands) 
 (unaudited) 
 
                              Three Months Ended            Six Months Ended 
                             6/30/2013 3/31/2013 6/30/2012 6/30/2013 6/30/2012
Income Statement                                                      
                                                                      
Interest income              $179,649  $185,272  $190,489  $364,921  $382,205
Interest income (TE)         182,292   187,998   193,323   370,290   387,988
Interest expense             10,470    11,257    13,030    21,727    28,458
Net interest income (TE)     171,822   176,741   180,293   348,563   359,530
Provision for loan losses    8,257     9,578     8,025     17,835    18,040
Noninterest income excluding 63,897    60,187    63,552    124,084   125,046
securities transactions
Securities transactions       --        --        --        --       12
gains/(losses)
Noninterest expense          162,250   159,602   179,972   321,852   385,435
Income before income taxes   62,569    65,022    53,014    127,591   75,330
Income tax expense           15,707    16,446    13,710    32,153    17,531
Net income                   $46,862   $48,576   $39,304   $95,438   $57,799
                                                                      
Merger-related expenses       --        --       11,913     --       45,827
Securities transactions       --        --        --        --       12
gains/(losses)
Taxes on adjustments          --        --       4,170      --       16,035
Operating income (e)         $46,862   $48,576   $47,047   $95,438   $87,579
                                                                      
Noninterest Income and                                                
Noninterest Expense
                                                                      
Service charges on deposit   $19,864   $19,015   $20,907   $38,879   $37,181
accounts
Trust fees                   9,803     8,692     7,983     18,495    16,721
Bank card fees               7,798     7,483     8,075     15,281    16,539
Investment & annuity fees    5,192     4,577     4,607     9,769     9,022
ATM fees                     3,601     3,575     4,844     7,176     9,177
Secondary mortgage market    4,139     4,383     3,015     8,522     7,017
operations
Insurance fees               4,845     3,994     4,581     8,839     8,058
Other income                 8,655     8,468     9,540     17,123    21,331
Noninterest income excluding $63,897   $60,187   $63,552   $124,084  $125,046
securities transactions
Securities transactions       --        --        --        --       12
gains/(losses)
Total noninterest income
including securities         $63,897   $60,187   $63,552   $124,084  $125,058
transactions
                                                                      
Personnel expense            $87,595   $87,927   $89,329   $175,522  $181,200
Occupancy expense (net)      12,404    12,326    13,603    24,730    28,005
Equipment expense            4,919     5,301     5,924     10,220    11,800
Other operating expense      49,901    46,493    51,281    96,394    102,377
Amortization of intangibles  7,431     7,555     7,922     14,986    16,226
Merger-related expenses       --        --       11,913     --       45,827
Total noninterest expense    $162,250  $159,602  $179,972  $321,852  $385,435
 

(e) 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.

 
 
 Hancock Holding Company 
 Financial Highlights 
 (amounts in thousands) 
 (unaudited) 
 
                    Three Months Ended                  Six Months Ended 
                   6/30/2013   3/31/2013   6/30/2012   6/30/2013   6/30/2012
Period-end Balance                                                  
Sheet
                                                                    
Commercial
non-real estate    $4,653,342  $4,425,621  $3,890,489  $4,653,342  $3,890,489
loans
Construction and
land development   966,499     992,820     1,167,496   966,499     1,167,496
loans
Commercial real    2,872,254   2,873,403   2,830,530   2,872,254   2,830,530
estate loans
Residential        1,616,093   1,587,519   1,519,711   1,616,093   1,519,711
mortgage loans
Consumer loans     1,573,309   1,603,399   1,669,920   1,573,309   1,669,920
Total loans        11,681,497  11,482,762  11,078,146  11,681,497  11,078,146
Loans held for     20,233      34,813      44,918      20,233      44,918
sale
Securities         4,303,918   4,662,279   4,320,457   4,303,918   4,320,457
Short-term         442,917     475,677     650,470     442,917     650,470
investments
Earning assets     16,448,565  16,655,531  16,093,991  16,448,565  16,093,991
Allowance for loan (137,969)   (137,777)   (140,768)   (137,969)   (140,768)
losses
Other assets       2,623,705   2,546,369   2,825,484   2,623,705   2,825,484
Total assets       $18,934,301 $19,064,123 $18,778,707 $18,934,301 $18,778,707
                                                                    
Noninterest        $5,340,177  $5,418,463  $5,040,484  $5,340,177  $5,040,484
bearing deposits
Interest bearing
transaction and    5,965,372   6,017,735   5,876,843   5,965,372   5,876,843
savings deposits
Interest bearing
public fund        1,410,866   1,528,790   1,479,378   1,410,866   1,479,378
deposits
Time deposits      2,439,523   2,288,363   2,534,115   2,439,523   2,534,115
Total interest     9,815,761   9,834,888   9,890,336   9,815,761   9,890,336
bearing deposits
Total deposits     15,155,938  15,253,351  14,930,820  15,155,938  14,930,820
Other borrowed     1,213,229   1,116,457   1,193,021   1,213,229   1,193,021
funds
Other liabilities  219,794     217,215     255,504     219,794     255,504
Common
shareholders'      2,345,340   2,477,100   2,399,362   2,345,340   2,399,362
equity
Total liabilities  $18,934,301 $19,064,123 $18,778,707 $18,934,301 $18,778,707
& common equity
                                                                    
Capital Ratios                                                      
                                                                    
Common
shareholders'      $2,345,340  $2,477,100  $2,399,362  $2,345,340  $2,399,362
equity
Tier 1 capital (f) 1,622,713   1,700,115   1,581,101   1,622,713   1,581,101
Tangible common    8.52%       9.14%       8.72%       8.52%       8.72%
equity ratio
Common equity
(period-end) as a
percent of total   12.39%      12.99%      12.78%      12.39%      12.78%
assets
(period-end)
Leverage (Tier 1)  8.91%       9.28%       8.62%       8.91%       8.62%
ratio (f)
Tier 1 risk-based  12.15%      12.85%      12.20%      12.15%      12.20%
capital ratio (f)
Total risk-based   13.63%      14.49%      14.23%      13.63%      14.23%
capital ratio (f)
 

(f) estimated for most recent period-end

 
 
 Hancock Holding Company 
 Financial Highlights 
 (amounts in thousands) 
 (unaudited) 
 
                    Three Months Ended                  Six Months Ended 
                   6/30/2013   3/31/2013   6/30/2012   6/30/2013   6/30/2012
Average Balance                                                     
Sheet
                                                                    
Commercial
non-real estate    $4,539,259  $4,413,558  $3,872,026  $4,476,754  $3,826,584
loans
Construction and
land development   984,449     975,301     1,235,612   979,900     1,251,362
loans
Commercial real    2,894,432   2,895,549   2,839,143   2,894,988   2,904,271
estate loans
Residential        1,625,672   1,626,629   1,548,803   1,626,148   1,548,945
mortgage loans
Consumer loans     1,579,397   1,618,891   1,644,532   1,599,036   1,635,334
Total loans (g)    11,623,209  11,529,928  11,140,116  11,576,826  11,166,496
Securities (h)     4,423,441   3,929,255   4,292,686   4,177,713   4,243,585
Short-term         453,565     1,058,519   733,489     754,371     793,166
investments
Earning assets     16,500,215  16,517,702  16,166,291  16,508,910  16,203,247
Allowance for loan (137,815)   (137,110)   (142,991)   (137,465)   (134,031)
losses
Other assets       2,660,432   2,772,059   2,964,097   2,715,938   3,021,242
Total assets       $19,022,832 $19,152,651 $18,987,397 $19,087,383 $19,090,458
                                                                    
Noninterest        $5,346,916  $5,314,648  $5,149,898  $5,330,871  $5,254,701
bearing deposits
Interest bearing
transaction and    5,965,769   5,982,345   5,881,673   5,974,011   5,753,817
savings deposits
Interest bearing
public fund        1,483,267   1,608,925   1,517,743   1,545,749   1,524,426
deposits
Time deposits      2,415,411   2,406,772   2,604,387   2,411,115   2,700,161
Total interest     9,864,447   9,998,042   10,003,803  9,930,875   9,978,404
bearing deposits
Total deposits     15,211,363  15,312,690  15,153,701  15,261,746  15,233,105
Other borrowed     1,183,744   1,160,110   1,212,692   1,171,993   1,225,271
funds
Other liabilities  222,656     231,841     233,539     227,224     250,897
Common
shareholders'      2,405,069   2,448,010   2,387,465   2,426,420   2,381,185
equity
Total liabilities  $19,022,832 $19,152,651 $18,987,397 $19,087,383 $19,090,458
& common equity
 

(g) Includes loans held for sale
(h) 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      6/30/2013        3/31/2013   6/30/2012
assets and acquired loans) (i)
Non-accrual loans (j)               $81,613          $82,194     $100,067
(k)
Restructured loans (l)              28,176           28,689      19,518
Total non-performing                109,789          110,883     119,585
loans
ORE and foreclosed                  49,691           55,545      93,339
assets (m)
Total non-performing                $159,480         $166,428    $212,924
assets
Non-performing assets
as a percent of loans,              1.92%            2.24%       3.61%
ORE and foreclosed
assets
Accruing loans 90 days              $5,270           $6,113      $1,443
past due
Accruing loans 90 days
past due as a percent               0.06%            0.08%       0.02%
of loans
Non-performing assets
+ accruing loans 90
days past due to                    1.98%            2.32%       3.63%
loans, ORE and
foreclosed assets
Allowance for loan                  $76,399          $75,466     $81,376
losses (n) (o)
Allowance for loan
losses as a percent of              0.93%            1.02%       1.40%
period-end loans
Allowance for loan
losses to
nonperforming loans +               66.40%           64.50%      67.24%
accruing loans 90 days
past due
(i) 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.
(j) Excludes acquired covered loans not accounted for under the accretion
method of $4,221, $4,221, and $6,174.
(k) Excludes non-covered acquired performing loans at fair value of $24,682,
$28,874, and $7,143.
(l) Excludes non-covered acquired performing loans at fair value of $5,565,
$5,701, and $0.
(m) Excludes covered foreclosed assets of $22,544, $24,082, and $44,779.
(n) Excludes allowance for loan losses recorded on covered acquired loans of
$61,200, $61,868, and $59,392.
(o) Excludes allowance for loan losses recorded on non-covered
acquired-performing loans of $370, $443 and $0.
 
 
 
                       3/31/2013
                       Originated   Acquired Loans   Covered     Total
                       Loans        (p)              Loans (q)
Commercial non-real    $2,901,190   $1,500,137       $24,294     $4,425,621
estate 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   886,232      449,500          251,787     1,587,519
loans
Consumer loans         1,331,142    180,632          91,625      1,603,399
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
                                                                  
                       6/30/2013
                       Originated   Acquired Loans   Covered     Total
                       Loans        (p)              Loans (q)
Commercial non-real    $3,564,008   $1,062,916       $26,418     $4,653,342
estate loans
Construction and land  722,649      217,611          26,239      966,499
development loans
Commercial real estate 1,638,409    1,161,500        72,345      2,872,254
loans
Residential mortgage   988,595      392,282          235,216     1,616,093
loans
Consumer loans         1,340,094    162,722          70,493      1,573,309
Total loans            $8,253,755   $2,997,031       $430,711    $11,681,497
Change in loan balance $874,819     ($629,819)       ($46,265)   $198,735
from previous quarter
 
(p) Loans which have been acquired and no allowance brought forward in
accordance with acquisition accounting.
(q) 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
                 6/30/2013                  3/31/2013                  6/30/2012
                 Interest Volume      Rate  Interest Volume      Rate  Interest Volume      Rate
                                                                                             
Average Earning                                                                              
Assets
Commercial &
real estate      $103,344 $8,418,140  4.92% $113,296 $8,284,408  5.54% $108,777 $7,946,781  5.50%
loans (TE)
Residential       27,540   1,625,672  6.78%  25,680   1,626,629  6.31%  28,709   1,548,803  7.41%
mortgage loans
Consumer loans    26,534   1,579,397  6.74%  26,501   1,618,891  6.64%  28,372   1,644,532  6.92%
Loan fees & late  1,236    --         0.00%  568      --         0.00%  1,548    --         0.00%
charges
Total loans (TE)  158,654  11,623,209 5.47%  166,045  11,529,928 5.83%  167,406  11,140,116 6.04%
                                                                                             
US Treasury and
government        1        150        2.67%  17       5,579      1.24%  738      142,149    2.09%
agency
securities
CMOs              7,454    1,589,017  1.88%  7,091    1,534,840  1.85%  7,983    1,578,438  2.02%
Mortgage backed   13,217   2,593,270  2.04%  11,605   2,163,544  2.15%  13,921   2,296,126  2.43%
securities
Municipals (TE)   2,630    232,987    4.51%  2,554    216,974    4.71%  2,741    266,661    4.11%
Other securities  56       8,017      2.79%  41       8,318      1.96%  65       9,312      2.79%
Total securities  23,358   4,423,441  2.11%  21,308   3,929,255  2.17%  25,448   4,292,686  2.37%
(TE) (r)
                                                                                             
Total short-term  280      453,565    0.25%  645      1,058,519  0.25%  469      733,489    0.26%
investments
                                                                                             
Average earning
assets yield     $182,292 $16,500,215 4.42% $187,998 $16,517,702 4.60% $193,323 $16,166,291 4.80%
(TE)
                                                                                             
Interest-bearing                                                                             
Liabilities
Interest-bearing
transaction and  $1,542   $5,965,769  0.10% $1,659   $5,982,345  0.11% $1,764   $5,881,673  0.12%
savings deposits
Time deposits     3,795    2,415,411  0.63%  4,086    2,406,772  0.69%  5,018    2,604,387  0.77%
Public funds      852      1,483,267  0.23%  1,000    1,608,925  0.25%  1,090    1,517,743  0.29%
Total interest    6,189    9,864,447  0.25%  6,745    9,998,042  0.27%  7,872    10,003,803 0.32%
bearing deposits
                                                                                             
Total borrowings  4,281    1,183,744  1.45%  4,512    1,160,110  1.58%  5,158    1,212,692  1.71%
                                                                                             
Total interest
bearing          $10,470  $11,048,191 0.38% $11,257  $11,158,152 0.41% $13,030  $11,216,495 0.47%
liabilities cost
                                                                                             
Net
interest-free              5,452,024                  5,359,550                  4,949,796   
funding sources
                                                                                             
Total Cost of    $10,470  $16,500,215 0.25% $11,257  $16,517,702 0.28% $13,030  $16,166,291 0.32%
Funds
                                                                                             
Net Interest     $171,822             4.04% $176,741             4.19% $180,293             4.33%
Spread (TE)
                                                                                             
Net Interest     $171,822 $16,500,215 4.17% $176,741 $16,517,702 4.32% $180,293 $16,166,291 4.48%
Margin (TE)
 
(r) 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) 
                                                                                             
 
                                             Six Months Ended 
                                            6/30/2013                  6/30/2012
                                            Interest Volume      Rate  Interest Volume      Rate
                                                                                             
Average Earning                                                                              
Assets
Commercial &
real estate                                 $216,640 $8,351,642  5.23% $221,285 $7,982,217  5.57%
loans (TE)
Residential                                  53,220   1,626,148  6.55%  55,132   1,548,945  7.12%
mortgage loans
Consumer loans                               53,035   1,599,036  6.69%  56,934   1,635,334  6.98%
Loan fees & late                             1,804    --         0.00%  2,347    --         0.00%
charges
Total loans (TE)                             324,699  11,576,826 5.65%  335,698  11,166,496 6.04%
                                                                                             
US Treasury and
government                                   18       2,849      1.27%  2,001    180,793    2.23%
agency
securities
CMOs                                         14,545   1,562,078  1.86%  14,766   1,469,785  2.01%
Mortgage backed                              24,822   2,379,595  2.09%  28,327   2,308,915  2.45%
securities
Municipals (TE)                              5,184    225,025    4.61%  6,009    275,387    4.36%
Other securities                             97       8,166      2.37%  191      8,705      4.38%
Total securities                             44,666   4,177,713  2.14%  51,294   4,243,585  2.42%
(TE) (s)
                                                                                             
Total short-term                             925      754,371    0.25%  996      793,166    0.25%
investments
                                                                                             
Average earning
assets yield                                $370,290 $16,508,910 4.51% $387,988 $16,203,247 4.80%
(TE)
                                                                                             
Interest-Bearing                                                                             
Liabilities
Interest-bearing
transaction                                 $3,201   $5,974,011  0.11% $3,946   $5,753,817  0.14%
deposits
Time deposits                                7,881    2,411,115  0.66%  11,906  2,700,161   0.88%
Public funds                                 1,852    1,545,749  0.24%  2,283   1,524,426   0.30%
Total interest                               12,934   9,930,875  0.26%  18,135   9,978,404  0.36%
bearing deposits
                                                                                             
Total borrowings                             8,793    1,171,993  1.51%  10,323   1,225,271  1.69%
                                                                                             
Total interest
bearing                                     $21,727  $11,102,868 0.39% $28,458  $11,203,675 0.51%
liabilities cost
                                                                                             
Net
interest-free                                         5,406,042                 4,999,572    
funding sources
                                                                                             
Total Cost of                               $21,727  $16,508,910 0.27% $28,458  $16,203,247 0.35%
Funds
                                                                                             
Net Interest                                $348,563             4.12% $359,530             4.30%
Spread (TE)
                                                                                             
Net Interest                                $348,563 $16,508,910 4.24% $359,530 $16,203,247 4.45%
Margin (TE)
 
(s) 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

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