GULFPORT, Miss., Oct. 21, 2008 (GLOBE NEWSWIRE) -- Hancock Holding Company (Nasdaq:HBHC) today announced net income for the quarter ended September 30, 2008. Hancock's third quarter 2008 net income was $16.0 million, a decrease of $1.7 million, or 9.8 percent, from the third quarter of 2007. Diluted earnings per share for the third quarter of 2008 were $0.50, a decrease of $0.05 from the same quarter a year ago.
Net income for the first nine months of 2008 was $57.0 million, a decrease of $246 thousand, or 0.4 percent, from the first nine months of 2007. Diluted earnings per share were $1.79 for the first nine months of 2008, an increase of $0.05 compared to the prior year (due in part to 1,004,000 common shares repurchased in 2007).
Hancock Holding Company Chief Executive Officer Carl J. Chaney stated, "The Company's lower earnings for the quarter were not related to a significant worsening of asset quality or write-downs of hard to value investments, which have plagued so many other financial institutions as part of the current financial crisis. But rather, the primary reason for the Company's lower earnings this quarter was related to a 30 percent annualized increase in loans and the need to set aside an appropriate level of reserves for loan losses. Because of the vibrant markets in which we operate and due to our position of strength and stability, Hancock is experiencing significant loan growth. With that growth comes the need to set aside reserves for loan losses. Also, Hancock is not completely immune from the current economic crisis and, as a result, did experience an additional $1.7 million in net charge-offs this quarter compared to last quarter. Most of these charge-offs were past-due commercial loans whose collateral values had declined in this volatile economic environment. Hancock remains extremely well capitalized with a tangible equity ratio of approximately 8 percent, which is higher than most banks. Especially in this environment, the Company remains a pillar of strength and stability and stands ready to weather the current economic storm."
Highlights and key operating items from Hancock's third quarter earnings are as follows:
* Net Income and Returns: Hancock's net income for the third
quarter of 2008 was $16.0 million compared to $17.7 million for
the same quarter a year ago, a decrease of $1.7 million, or 9.8
percent, and a decrease of $5.0 million, or 23.7 percent, over the
prior quarter. Return on average assets for the quarter was 1.00
percent compared to 1.21 percent for 2007's third quarter and to
1.36 percent for the prior quarter. Return on average common
equity was 10.90 percent compared to 12.58 percent for 2007's
third quarter and to 14.51 per cent for the prior quarter.
* Impact of Hurricane Gustav: Hurricane Gustav made landfall on the
southeastern Louisiana coast on Monday, September 1, 2008 and
significantly impacted Hancock's markets in Baton Rouge and
Alexandria, Louisiana. By Tuesday, September 2, Hancock was the
first bank to open in Louisiana, with over 25 percent of the
Company's Louisiana branch offices open. By Saturday, September
6, Hancock had 100 percent of the Company's 50 Louisiana branch
offices open. In dealing with Hurricane Gustav, the Company
incurred $560 thousand in operating expenses (clean up and repair
costs, fuel, lodging and other miscellaneous costs) and also
rebated to customers $294 thousand in return item fees and other
service charges. The Company incurred no major damage to any
facilities and will not file a property and casualty insurance
claim. The total pretax impact of the costs and fees rebated was
$854 thousand, or approximately $0.02 per diluted share on an
after-tax basis.
* Net Charge-offs and Non-performing Assets: Net charge-offs for
the third quarter of 2008 were $4.2 million, or 0.42 percent of
average loans, up $1.7 million from the $2.5 million, or 0.27
percent of average loans, reported for the second quarter of
2008. The majority of the increase in net charge-offs as compared
to the second quarter was reflected in commercial real estate
loans, where the collateral values were written down to revised
levels. Non-performing assets as a percent of total loans and
foreclosed assets was 0.59 percent at September 30, 2008, compared
to 0.52 percent at June 30, 2008. The Company did report an
increase in non-accrual loans of $3.8 million and an increase in
ORE of $504 thousand as compared to the second quarter. The
majority of the increase reported in non-accrual loans was
reflected in a single relationship, a stalled real estate
development project in Louisiana which was adequately reserved at
September 30, 2008. Loans 90 days past due or greater (accruing)
as a percent of period end loans decreased 2 basis points from
June 30, 2008 to 0.15 percent at September 30, 2008.
* Allowance for Loan Losses: Hancock recorded a provision for loan
losses of $8.1 million in the third quarter which, when combined
with the quarter's net charge-offs of $4.2 million, resulted in a
$3.9 million increase in the allowance for loan losses between .
June 30, 2008, and September 30, 2008. This increase was
necessary to adjust the allowance to the level dictated by the
Company's reserving methodologies. A major driver of the overall
higher level of the allowance for loan losses was a $285 million,
or 30 percent annualized, increase in loans between June 30, 2008
and September 30, 2008. The Company's allowance for loan losses
was $57.2 million at September 30, 2008, compared to $53.3 million
reported at June 30, 2008. The ratio of the allowance for loan
losses as a percent of period-end loans was 1.40 percent at
September 30, 2008, as compared to the 1.41 percent reported at
June 30, 2008.
* Loans: For the quarter ended September 30, 2008, Hancock's average
total loans were $3.95 billion, which represented an increase of
$483.0 million, or 13.9 percent, from the quarter ended September
30, 2007. Also as mentioned, period-end loans were up $285.1
million, or 30 percent annualized, from last quarter, while
average loans increased $241.2 million, or 26 percent annualized.
The majority of the increase in loans was in commercial purpose
loans, but all consumer loan categories were up as well. Of the
$241.2 million increase in average loans, approximately $99.0
million was in Mississippi, $90.0 million in Louisiana, and $28.0
million and $24.2 million in Alabama and Florida, respectively.
* Deposits: Average deposits were up $142.3 million, or 11.5
percent annualized, from the second quarter of 2008. The increase
in average deposits was reflected mostly in public fund deposits
(up $115.7 million) and time deposits (up $76.4 million). These
increases were partly offset by decreases in noninterest-bearing
deposits (down $10.5 million) and interest-bearing transaction
deposits (down $39.3 million). Period-end deposits for the third
quarter were $5.41 billion, up $415.2 million, or 8.3 percent,
from September 30, 2007 and were up $394.0 million, or 32 percent
annualized, from June 30, 2008. The large increase in period-end
deposits as compared to June 30, 2008 was primarily in time
deposits as well as public fund deposits. Over half of the $394.0
million increase occurred in the month of September, as customers
and many large public depositories sought the safety of Hancock
Bank as the financial crisis continued to intensify.
* Net Interest Income: Net interest income (te) for the third
quarter increased $3.9 million, or 7.3 percent, from the third
quarter of 2007 and increased $2.8 million from the second
quarter of 2008, or 20.7 percent annualized. The net interest
margin (te) of 3.99 percent was 7 basis points narrower than the
same quarter a year ago. Growth in average earning asset levels
was strong compared to the same quarter a year ago, with an
increase of $495.9 million, or 9.4 percent, mostly reflected in
higher average loans (up $483.0 million, or 13.9 percent). With
short-term interest rates down significantly from a year ago, the
Company's loan yield fell 124 basis points, pushing the yield on
average earning assets down 80 basis points. However, total
funding costs over the past year were down only 73 basis points.
Compared to the prior quarter, the net interest margin (te)
widened 8 basis points, mostly due to a continued reduction in the
Company's funding costs. The Company's total cost of funds was
down 9 basis points compared to the previous quarter, with rates
on time deposits down 33 basis points. The higher level of net
interest income (te) from the prior quarter and wider net interest
margin were due, in part, to the continued re-pricing of the
Company's CD portfolio (during the quarter, $411 million of
maturing time deposits were re-priced into lower costing CDs) as
well as the aforementioned $241.2 million in average loan growth.
The quarter's loan growth was funded by a combination of higher
deposits and maturing securities.
* Non-interest income: Non-interest income, excluding securities
transactions, for the third quarter was down $1.0 million, or 3.2
percent, compared to the same quarter a year ago and was also down
$1.2 million, or 3.9 percent, compared to the previous quarter.
The primary factors impacting the lower levels of non-interest
income compared to the same quarter a year ago were lower levels o
of other income (down $1.5 million, or 31.6 percent) and insurance
fees (down $451 thousand, or 10.6 percent). The decrease in non-
interest income (excluding securities transactions) for the third
quarter compared to the prior quarter was primarily due to lower
insurance fees (down $440 thousand, or 10.3 percent), investment
and annuity fees (down $306 thousand, or 11.2 percent) and trust
fees (down $245 thousand, or 5.4 percent). Included in the lower
level of service charges for the third quarter were $294 thousand
in customer rebates related to Hurricane Gustav.
* Operating expense: Operating expenses for the third quarter were
$0.4 million, or 0.7 percent, lower compared to the same quarter a
year ago but were $3.3 million, or 6.3 percent, higher than the
previous quarter. The decrease from the same quarter a year ago
was reflected in lower other operating expenses (down $809
thousand) and was partly offset by higher levels of occupancy
expense (up $457 thousand). The increase in operating expense from
last quarter was due to personnel expense (up $1.6 million), other
operating expense (up $1.3 million), and occupancy expense (up
$486 thousand). Included in operating expense during the third
quarter was approximately $560 thousand of increased expense
related to Hurricane Gustav.
Hancock Holding Company -- parent company of Hancock Bank of Mississippi, Hancock Bank of Louisiana, Hancock Bank of Florida, and Hancock Bank of Alabama -- has assets of approximately $6.74 billion. Founded in 1899, Hancock Bank consistently ranks as one of the country's strongest, safest financial institutions, according to Veribanc, Inc. and BauerFinancial Services, Inc. More corporate information and online banking are available at www.hancockbank.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about companies' anticipated future financial performance. This act provides a safe harbor for such disclosure, which protects the companies from unwarranted litigation if actual results are different from management expectations. This release contains forward-looking statements and reflects management's current views and estimates of future economic circumstances, industry conditions, company performance, and financial results. These forward-looking statements are subject to a number of factors and uncertainties which could cause the Company's actual results and experience to differ from the anticipated results and expectations expressed in such forward-looking statements.
Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
------------------------------------------------
Three Months Ended Nine Months Ended
------------------------------------------------
9/30/ 6/30/ 9/30/ 9/30/ 9/30/
2008 2008 2007 2008 2007
------------------------------------------------
Per Common Share Data
---------------------
Earnings per share:
Basic $0.51 $0.67 $0.55 $1.82 $1.77
Diluted $0.50 $0.66 $0.55 $1.79 $1.74
Cash dividends per
share $0.240 $0.240 $0.240 $0.720 $0.720
Book value per share
(period-end) $18.95 $18.27 $17.55 $18.95 $17.55
Tangible book value
per share
(period-end) $16.77 $16.06 $15.32 $16.77 $15.32
Weighted average
number of shares:
Basic 31,471 31,382 32,005 31,402 32,299
Diluted 31,905 31,814 32,492 31,826 32,847
Period-end number of
shares 31,702 31,386 31,786 31,702 31,786
Market data:
High closing price $68.42 $45.68 $43.90 $68.42 $54.09
Low closing price $33.34 $38.38 $32.78 $33.34 $32.78
Period end closing
price $51.00 $39.29 $40.08 $51.00 $40.08
Trading volume 23,562 14,527 10,290 55,296 30,485
Other Period-end Data
---------------------
FTE headcount 1,941 1,903 1,966 1,941 1,966
Tangible common
equity $531,800 $503,953 $486,871 $531,800 $486,871
Tier I capital $546,379 $527,479 $508,554 $546,379 $508,554
Goodwill $62,277 $62,277 $62,277 $62,277 $62,277
Amortizable
intangibles $6,402 $6,762 $8,195 $6,402 $8,195
Mortgage servicing
intangibles $357 $413 $632 $357 $632
Common shares
repurchased for
publicly announced
plans 0 0 343 0 1,004
Performance Ratios
------------------
Return on average
assets 1.00% 1.36% 1.21% 1.22% 1.31%
Return on average
common equity 10.90% 14.51% 12.58% 13.16% 13.63%
Earning asset
yield (TE) 6.02% 6.03% 6.82% 6.11% 6.74%
Total cost of funds 2.03% 2.12% 2.76% 2.21% 2.65%
Net interest margin
(TE) 3.99% 3.91% 4.06% 3.90% 4.09%
Noninterest expense
as a percent of
total revenue (TE)
before amortization
of purchased
intangibles and
securities
transactions 62.92% 60.26% 65.45% 60.92% 62.81%
Common equity
(period-end) as a
percent of
total assets
(period-end) 8.91% 9.15% 9.45% 8.91% 9.45%
Leverage (Tier I)
ratio 8.66% 8.57% 8.82% 8.66% 8.82%
Tangible common
equity ratio 7.97% 8.13% 8.34% 7.97% 8.34%
Net charge-offs as a
percent of average
loans 0.42% 0.27% 0.21% 0.34% 0.19%
Allowance for loan
losses as a percent
of period-end loans 1.40% 1.41% 1.31% 1.40% 1.31%
Allowance for loan
losses to NPAs +
accruing loans 90
days past due 189.69% 203.06% 335.22% 189.69% 335.22%
Loan/deposit ratio 77.46% 74.82% 70.28% 74.81% 68.60%
Non-interest income
excluding securities
transactions as a
percent of total
revenue (TE) 34.46% 36.52% 36.83% 35.91% 35.45%
------------------------------------------------
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
------------------------------------------------------
Three Months Ended Nine Months Ended
------------------------------------------------------
9/30/2008 6/30/2008 9/30/2007 9/30/2008 9/30/2007
------------------------------------------------------
Asset Quality
Information
-------------
Non-accrual
loans $21,875 $18,106 $8,500 $21,875 $8,500
Foreclosed
assets 2,197 1,693 1,374 2,197 1,374
------------------------------------------------------
Total non-
performing
assets $24,072 $19,799 $9,874 $24,072 $9,874
------------------------------------------------------
Non-performing
assets as a
percent of
loans and
foreclosed
assets 0.59% 0.52% 0.28% 0.59% 0.28%
Accruing loans
90 days past
due $6,082 $6,449 $3,819 $6,082 $3,819
Accruing loans
90 days past
due as a
percent of
loans 0.15% 0.17% 0.11% 0.15% 0.11%
Non-performing
assets +
accruing loans
90 days past
due to loans
and foreclosed
assets 0.74% 0.69% 0.39% 0.74% 0.39%
Net charge-offs $4,164 $2,495 $1,880 $9,592 $4,873
Net charge-offs
as a percent
of average
loans 0.42% 0.27% 0.21% 0.34% 0.19%
Allowance for
loan losses $57,200 $53,300 $45,901 $57,200 $45,901
Allowance for
loan losses as
a percent of
period-end
loans 1.40% 1.41% 1.31% 1.40% 1.31%
Allowance for
loan losses to
NPAs +
accruing loans
90 days past
due 189.69% 203.06% 335.22% 189.69% 335.22%
Provision for
loan losses $8,064 $2,787 $1,554 $19,669 $4,002
Allowance for
Loan Losses
-------------
Beginning
Balance $53,300 $53,008 $46,227 $47,123 $46,772
Provision for
loan loss 8,064 2,787 1,554 19,669 4,002
Charge-offs 5,133 3,968 3,610 13,299 10,207
Recoveries 969 1,473 1,730 3,707 5,334
------------------------------------------------------
Net charge-offs 4,164 2,495 1,880 9,592 4,873
------------------------------------------------------
Ending Balance $57,200 $53,300 $45,901 $57,200 $45,901
------------------------------------------------------
Net Charge-off
Information
--------------
Net charge-
offs:
Commercial/real
estate loans $1,556 $600 ($58) $2,990 $47
Mortgage loans 179 61 -- 240 1
Direct consumer
loans 650 442 864 1,680 1,835
Indirect
consumer loans 867 681 314 2,011 1,216
Finance company
loans 912 711 760 2,671 1,774
------------------------------------------------------
Total net
charge-offs $4,164 $2,495 $1,880 $9,592 $4,873
======================================================
Average loans:
Commercial/real
estate loans $2,453,154 $2,272,057 $2,106,778 $2,317,134 $2,042,992
Mortgage loans 427,752 413,076 388,603 413,453 382,904
Direct consumer
loans 546,079 526,752 491,417 529,153 487,985
Indirect
consumer loans 410,110 386,565 373,677 394,610 363,773
Finance Company
loans 116,140 113,555 109,807 114,276 101,135
------------------------------------------------------
Total average
loans $3,953,235 $3,712,005 $3,470,282 $3,768,626 $3,378,789
Net charge-offs
to average
loans:
Commercial/real
estate loans 0.25% 0.11% -0.01% 0.17% 0.00%
Mortgage loans 0.17% 0.06% 0.00% 0.08% 0.00%
Direct consumer
loans 0.47% 0.34% 0.70% 0.42% 0.50%
Indirect
consumer loans 0.84% 0.71% 0.33% 0.68% 0.45%
Finance Company
loans 3.12% 2.52% 2.74% 3.12% 2.35%
------------------------------------------------------
Total net
charge-offs to
average loans 0.42% 0.27% 0.21% 0.34% 0.19%
------------------------------------------------------
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
------------------------------------------------
Three Months Ended Nine Months Ended
------------------------------------------------
9/30/ 6/30/ 9/30/ 9/30/ 9/30/
2008 2008 2007 2008 2007
------------------------------------------------
Income Statement
----------------
Interest income $84,132 $81,732 $87,609 $250,636 $258,166
Interest income (TE) 86,774 84,164 89,982 258,165 265,221
Interest expense 29,357 29,573 36,467 93,274 104,169
------------------------------------------------
Net interest income
(TE) 57,417 54,591 53,515 164,891 161,052
Provision for loan
losses 8,064 2,787 1,554 19,669 4,002
Noninterest income
excluding securities
transactions 30,194 31,412 31,198 92,375 88,454
Securities
transactions
gains/(losses) (79) 426 34 5,999 74
Noninterest expense 55,483 52,189 55,857 157,806 157,939
------------------------------------------------
Income before income
taxes 21,343 29,021 24,963 78,261 80,584
Income tax expense 5,338 8,037 7,224 21,215 23,292
------------------------------------------------
Net income $16,005 $20,984 $17,739 $57,046 $57,292
================================================
Noninterest Income
and Noninterest
Expense
------------------
Service charges on
deposit accounts $11,108 $10,879 $11,085 $32,777 $30,747
Trust fees 4,330 4,575 3,892 13,080 11,708
Debit card & merchant
fees 2,805 2,884 2,571 8,229 7,480
Insurance fees 3,819 4,259 4,270 12,419 13,672
Investment & annuity
fees 2,421 2,727 2,253 7,957 6,249
ATM fees 1,718 1,757 1,550 5,166 4,357
Secondary mortgage
market operations 817 753 935 2,347 2,962
Other income 3,176 3,578 4,642 10,400 11,279
------------------------------------------------
Noninterest income
excluding securities
transactions $30,194 $31,412 $31,198 $92,375 $88,454
Securities
transactions
gains/(losses) (79) 426 34 5,999 74
------------------------------------------------
Total noninterest
income including
securities
transactions $30,115 $31,838 $31,232 $98,374 $88,528
================================================
Personnel expense $28,664 $27,031 $28,531 $81,326 $79,932
Occupancy expense
(net) 5,188 4,702 4,731 14,491 13,273
Equipment expense 2,711 2,785 2,814 8,405 7,855
Other operating
expense 18,560 17,307 19,369 52,495 55,660
Amortization of
intangibles 360 364 412 1,089 1,219
------------------------------------------------
Total noninterest
expense $55,483 $52,189 $55,857 $157,806 $157,939
================================================
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
------------------------------------------------------
Three Months Ended Nine Months Ended
------------------------------------------------------
9/30/2008 6/30/2008 9/30/2007 9/30/2008 9/30/2007
------------------------------------------------------
Period-end
Balance Sheet
--------------
Commercial/real
estate loans $2,549,906 $2,348,816 $2,141,217 $2,549,906 $2,141,217
Mortgage loans 421,254 410,469 381,929 421,254 381,929
Direct consumer
loans 554,374 520,230 494,667 554,374 494,667
Indirect
consumer loans 430,414 393,625 380,561 430,414 380,561
Finance Company
loans 116,995 114,664 114,919 116,995 114,919
------------------------------------------------------
Total loans 4,072,943 3,787,804 3,513,293 4,072,943 3,513,293
Loans held for
sale 16,565 28,808 17,698 16,565 17,698
Securities 1,659,423 1,796,017 1,674,706 1,659,423 1,674,706
Short-term
investments 306,866 9,848 99,176 306,866 99,176
------------------------------------------------------
Earning assets 6,055,797 5,622,477 5,304,873 6,055,797 5,304,873
------------------------------------------------------
Allowance for
loan losses (57,200) (53,300) (45,901) (57,200) (45,901)
Other assets 746,165 700,939 647,081 746,165 647,081
------------------------------------------------------
Total assets $6,744,762 $6,270,116 $5,906,053 $6,744,762 $5,906,053
======================================================
Noninterest
bearing
deposits $866,414 $894,544 $891,842 $866,414 $891,842
Interest
bearing
transaction
deposits 1,371,400 1,460,848 1,357,835 1,371,400 1,357,835
Interest
bearing
Public Fund
deposits 1,231,529 1,003,415 837,073 1,231,529 837,073
Time deposits 1,945,452 1,662,001 1,912,799 1,945,452 1,912,799
------------------------------------------------------
Total interest
bearing
deposits 4,548,381 4,126,264 4,107,707 4,548,381 4,107,707
------------------------------------------------------
Total deposits 5,414,795 5,020,808 4,999,549 5,414,795 4,999,549
Other borrowed
funds 635,069 574,981 216,481 635,069 216,481
Other
liabilities 94,063 100,922 132,048 94,063 132,048
Common
shareholders'
equity 600,835 573,405 557,975 600,835 557,975
------------------------------------------------------
Total
liabilities &
common equity $6,744,762 $6,270,116 $5,906,053 $6,744,762 $5,906,053
======================================================
Average Balance
Sheet
---------------
Commercial/real
estate loans $2,453,154 $2,272,057 $2,106,778 $2,317,134 $2,042,992
Mortgage loans 427,752 413,076 388,603 413,453 382,904
Direct consumer
loans 546,079 526,752 491,417 529,153 487,985
Indirect
consumer loans 410,110 386,565 373,677 394,610 363,773
Finance Company
loans 116,140 113,555 109,807 114,276 101,135
------------------------------------------------------
Total loans 3,953,235 3,712,005 3,470,282 3,768,626 3,378,789
Securities 1,765,702 1,830,533 1,660,841 1,777,036 1,735,581
Short-term
investments 28,161 57,518 120,116 94,810 139,323
------------------------------------------------------
Earning average
assets 5,747,098 5,600,056 5,251,239 5,640,472 5,253,693
------------------------------------------------------
Allowance for
loan losses (54,786) (53,012) (46,216) (51,739) (46,475)
Other assets 682,316 676,189 632,004 681,645 618,309
------------------------------------------------------
Total assets $6,374,628 $6,223,233 $5,837,027 $6,270,378 $5,825,527
======================================================
Noninterest
bearing
deposits $869,881 $880,375 $893,455 $869,655 $942,360
Interest
bearing
transaction
deposits 1,408,013 1,447,301 1,383,851 1,410,665 1,445,384
Interest
bearing Public
Fund deposits 1,062,127 946,411 823,316 990,498 806,476
Time deposits 1,763,609 1,687,218 1,837,292 1,766,541 1,730,787
------------------------------------------------------
Total interest
bearing
deposits 4,233,749 4,080,930 4,044,459 4,167,704 3,982,647
------------------------------------------------------
Total deposits 5,103,630 4,961,305 4,937,914 5,037,359 4,925,007
Other borrowed
funds 587,939 567,151 206,072 546,695 203,025
Other
liabilities 98,913 113,096 133,695 107,460 135,396
Common
shareholders'
equity 584,146 581,681 559,346 578,864 562,099
------------------------------------------------------
Total
liabilities &
common equity $6,374,628 $6,223,233 $5,837,027 $6,270,378 $5,825,527
======================================================
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
------------------------------------------------------
Three Months Ended Nine Months Ended
------------------------------------------------------
9/30/2008 6/30/2008 9/30/2007 9/30/2008 9/30/2007
------------------------------------------------------
Average Balance
Sheet Mix
---------------
Percentage of
earning
assets/funding
sources:
Loans 68.79% 66.28% 66.08% 66.81% 64.31%
Securities 30.72% 32.69% 31.63% 31.51% 33.04%
Short-term
investments 0.49% 1.03% 2.29% 1.68% 2.65%
------------------------------------------------------
Earning average
assets 100.00% 100.00% 100.00% 100.00% 100.00%
======================================================
Noninterest
bearing
deposits 15.14% 15.72% 17.01% 15.42% 17.94%
Interest
bearing
transaction
deposits 24.50% 25.84% 26.36% 25.01% 27.51%
Interest
bearing Public
Fund deposits 18.48% 16.90% 15.68% 17.56% 15.35%
Time deposits 30.68% 30.13% 34.99% 31.32% 32.95%
------------------------------------------------------
Total deposits 88.80% 88.59% 94.04% 89.31% 93.75%
Other borrowed
funds 10.23% 10.13% 3.92% 9.69% 3.86%
Other net
interest-free
funding
sources 0.97% 1.28% 2.04% 1.00% 2.39%
------------------------------------------------------
Total average
funding
sources 100.00% 100.00% 100.00% 100.00% 100.00%
======================================================
Loan mix:
Commercial/real
estate loans 62.06% 61.21% 60.71% 61.49% 60.47%
Mortgage loans 10.82% 11.13% 11.20% 10.97% 11.33%
Direct consumer
loans 13.81% 14.19% 14.16% 14.04% 14.44%
Indirect
consumer loans 10.37% 10.41% 10.77% 10.47% 10.77%
Finance Company
loans 2.94% 3.06% 3.16% 3.03% 2.99%
------------------------------------------------------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
======================================================
Average dollars
(in thousands):
Loans $3,953,235 $3,712,005 $3,470,282 $3,768,626 $3,378,789
Securities 1,765,702 1,830,533 1,660,841 1,777,036 1,735,581
Short-term
investments 28,161 57,518 120,116 94,810 139,323
------------------------------------------------------
Earning average
assets $5,747,098 $5,600,056 $5,251,239 $5,640,472 $5,253,693
Noninterest
bearing
deposits $869,881 $880,375 $893,455 $869,655 $942,360
Interest
bearing
transaction
deposits 1,408,013 1,447,301 1,383,851 1,410,665 1,445,384
Interest
bearing Public
Fund deposits 1,062,127 946,411 823,316 990,498 806,476
Time deposits 1,763,609 1,687,218 1,837,292 1,766,541 1,730,787
------------------------------------------------------
Total deposits 5,103,630 4,961,305 4,937,914 5,037,359 4,925,007
Other borrowed
funds 587,939 567,151 206,072 546,695 203,025
Other net
interest-free
funding
sources 55,529 71,600 107,252 56,418 125,662
------------------------------------------------------
Total average
funding
sources $5,747,098 $5,600,056 $5,251,238 $5,640,472 $5,253,694
Loans:
Commercial/real
estate loans $2,453,154 $2,272,057 $2,106,778 $2,317,134 $2,042,992
Mortgage loans 427,752 413,076 388,603 413,453 382,904
Direct consumer
loans 546,079 526,752 491,417 529,153 487,985
Indirect
consumer loans 410,110 386,565 373,677 394,610 363,773
Finance Company
loans 116,140 113,555 109,807 114,276 101,135
------------------------------------------------------
Total average
loans $3,953,235 $3,712,005 $3,470,282 $3,768,626 $3,378,789
------------------------------------------------------
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
------------------------------------------------------
Three Months Ended
------------------------------------------------------
09/30/08 06/30/08
------------------------------------------------------
Interest Volume Rate Interest Volume Rate
-------- ---------- ---- -------- ---------- ----
Average Earning
Assets
Commercial &
real estate
loans (TE) $36,289 $2,453,154 5.89% $34,223 $2,272,057 6.05%
Mortgage loans 6,366 427,752 5.95% 6,124 413,076 5.93%
Consumer loans 21,237 1,072,329 7.88% 20,960 1,026,872 8.21%
Loan fees & late
charges 455 -- 0.00% (48) -- 0.00%
-------- ---------- ---- -------- ---------- ----
Total loans
(TE) $64,347 $3,953,235 6.48% $61,259 $3,712,005 6.63%
US treasury
securities 53 11,334 1.86% 73 11,364 2.59%
US agency
securities 3,751 333,434 4.50% 3,728 335,607 4.44%
CMOs 1,786 141,355 5.05% 1,843 149,640 4.93%
Mortgage backed
securities 13,917 1,066,233 5.22% 14,060 1,101,270 5.11%
Municipals (TE) 2,280 163,796 5.57% 2,361 182,571 5.17%
Other securities 557 49,550 4.50% 535 50,081 4.27%
-------- ---------- ---- -------- ---------- ----
Total
securities
(TE) 22,344 1,765,702 5.06% 22,600 1,830,533 4.94%
Total short-
term
investments 83 28,161 1.18% 305 57,518 2.13%
Average earning
assets yield
(TE) $86,774 $5,747,098 6.02% $84,164 $5,600,056 6.03%
Interest-bearing
Liabilities
Interest-bearing
transaction
deposits $3,193 $1,408,013 0.90% $3,273 $1,447,301 0.91%
Time deposits 15,579 1,763,609 3.51% 16,089 1,687,218 3.84%
Public Funds 6,750 1,062,127 2.53% 6,170 946,411 2.62%
-------- ---------- ---- -------- ---------- ----
Total interest
bearing
deposits $25,522 4,233,749 2.40% $25,532 4,080,930 2.52%
Total
borrowings 3,828 587,939 2.59% 4,061 567,151 2.88%
Capitalized
Interest 7 (20)
Total interest
bearing liab
cost $29,357 $4,821,688 2.42% $29,573 $4,648,081 2.56%
Noninterest-
bearing
deposits 869,881 880,375
Other net
interest-free
funding sources 55,529 71,600
Total Cost of
Funds $29,357 $5,747,098 2.03% $29,573 $5,600,056 2.12%
Net Interest
Spread (TE) $57,417 3.60% $54,591 3.47%
Net Interest
Margin (TE) $57,417 $5,747,098 3.99% $54,591 $5,600,056 3.91%
--------------------------
Three Months Ended
--------------------------
09/30/07
--------------------------
Interest Volume Rate
-------- ---------- ----
Average Earning Assets
Commercial & real estate loans (TE) $39,555 $2,106,778 7.45%
Mortgage loans 5,773 388,603 5.94%
Consumer loans 21,871 974,901 8.90%
Loan fees & late charges 257 -- 0.00%
-------- ---------- ----
Total loans (TE) $67,456 3,470,282 7.72%
US treasury securities 128 11,169 4.53%
US agency securities 10,223 801,585 5.10%
CMOs 830 80,989 4.10%
Mortgage backed securities 6,557 513,545 5.11%
Municipals (TE) 2,634 195,956 5.38%
Other securities 765 57,597 5.32%
-------- ---------- ----
Total securities (TE) 21,137 1,660,841 5.09%
Total short-term investments 1,389 120,116 4.59%
Average earning assets yield (TE) $89,982 $5,251,239 6.82%
Interest-bearing Liabilities
Interest-bearing transaction deposits $4,682 $1,383,851 1.34%
Time deposits 21,295 1,837,292 4.60%
Public Funds 8,753 823,316 4.22%
-------- ---------- ----
Total interest bearing deposits $34,730 4,044,459 3.41%
Total borrowings 1,892 206,072 3.64%
Capitalized Interest (155)
Total interest bearing liab cost $36,467 $4,250,531 3.40%
Noninterest-bearing deposits 893,455
Other net interest-free funding sources 107,252
Total Cost of Funds $36,467 $5,251,238 2.76%
Net Interest Spread (TE) $53,515 3.41%
Net Interest Margin (TE) $53,515 $5,251,238 4.06%
---------------------------------------------------------------------
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
-------------------------------------------------------
Nine Months Ended
-------------------------------------------------------
9/30/2008 9/30/2007
-------------------------------------------------------
Interest Volume Rate Interest Volume Rate
-------- ---------- ---- -------- ---------- ----
Average
Earning
Assets
Commercial &
real estate
loans (TE) $107,094 $2,317,134 6.17% $113,567 $2,042,992 7.43%
Mortgage loans 18,451 413,453 5.95% 16,866 382,904 5.87%
Consumer loans 63,737 1,038,039 8.20% 63,045 952,893 8.85%
Loan fees &
late charges 523 -- 0.00% 992 -- 0.00%
-------- ---------- ---- -------- ---------- ----
Total loans
(TE) 189,805 $3,768,626 6.73% 194,470 $3,378,789 7.69%
US treasury
securities 243 11,361 2.86% 1,278 35,083 4.87%
US agency
securities 13,118 382,046 4.58% 32,966 869,107 5.06%
CMOs 5,356 144,882 4.93% 2,882 93,941 4.09%
Mortgage
backed
securities 39,002 1,008,197 5.16% 17,887 476,077 5.01%
Municipals
(TE) 7,141 179,992 5.29% 8,148 197,200 5.51%
Other
securities 1,650 50,558 4.35% 2,530 64,173 5.26%
-------- ---------- ---- -------- ---------- ----
Total
securities
(TE) 66,510 1,777,036 4.99% 65,691 1,735,581 5.05%
Total short-
term
investments 1,850 94,810 2.61% 5,060 139,323 4.86%
Average
earning
assets
yield (TE) $258,165 $5,640,472 6.11% $265,221 $5,253,693 6.74%
Interest-
Bearing
Liabilities
Interest-
bearing
transaction
deposits $10,418 $1,410,665 0.99% $14,360 $1,445,384 1.33%
Time deposits 52,123 1,766,541 3.94% 58,871 1,730,787 4.55%
Public Funds 19,112 990,498 2.58% 26,221 806,476 4.35%
-------- ---------- ---- -------- ---------- ----
Total
interest
bearing
deposits $81,653 $4,167,704 2.62% $99,452 $3,982,647 3.34%
Total
borrowings 11,680 546,695 2.85% 5,589 203,025 3.68%
Capitalized
Interest (59) (872)
Total
interest
bearing liab
cost $93,274 $4,714,399 2.64% $104,169 $4,185,672 3.33%
Noninterest-
bearing
deposits 869,655 942,360
Other net
interest-free
funding
sources 56,418 125,662
Total Cost of
Funds $93,274 $5,640,472 2.21% $104,169 $5,253,694 2.65%
Net Interest
Spread (TE) $164,891 3.47% $161,052 3.41%
Net Interest
Margin (TE) $164,891 $5,640,472 3.90% $161,052 $5,253,694 4.09%
---------------------------------------------------------------------
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands,
except per share data
and FTE headcount) -------- -----------------------------------
(unaudited) 2006 2007
-------- -----------------------------------
4Q 1Q 2Q 3Q 4Q
-------- -------- -------- -------- --------
Per Common Share Data
---------------------
Earnings per share:
Basic $0.67 $0.59 $0.63 $0.55 $0.53
Diluted $0.65 $0.58 $0.62 $0.55 $0.53
Cash dividends per share $0.240 $0.240 $0.240 $0.240 $0.240
Book value per share
(period-end) $17.09 $17.27 $17.13 $17.55 $17.71
Tangible book value per
share (period-end) $14.87 $15.05 $14.90 $15.32 $15.45
Weighted average number
of shares:
Basic 32,632 32,665 32,233 32,005 31,097
Diluted 33,378 33,299 32,749 32,492 31,577
Period-end number of
shares 32,666 32,518 32,094 31,786 31,295
Market data:
High closing price $56.00 $54.09 $44.37 $43.90 $43.47
Low closing price $50.85 $41.88 $37.50 $32.78 $33.35
Period end closing
price $52.84 $43.98 $37.55 $40.08 $38.20
Trading volume 6,393 8,577 11,614 10,290 17,662
Other Period-end Data
---------------------
FTE headcount 1,848 1,929 1,944 1,966 1,888
Tangible common equity $485,778 $489,430 $478,085 $486,871 $483,612
Tier I capital $510,638 $513,229 $510,096 $508,554 $497,307
Goodwill $62,277 $62,277 $62,277 $62,277 $62,277
Amortizable intangibles $9,414 $8,991 $8,607 $8,195 $7,753
Mortgage servicing
intangibles $941 $829 $729 $632 $545
Common shares repurchased
for publicly announced
plans -- 228 433 343 552
Performance Ratios
------------------
Return on average assets 1.44% 1.32% 1.42% 1.21% 1.11%
Return on average common
equity 15.54% 13.77% 14.53% 12.58% 11.69%
Earning asset yield (TE) 6.54% 6.64% 6.76% 6.82% 6.72%
Total cost of funds 2.48% 2.60% 2.59% 2.76% 2.68%
Net interest margin (TE) 4.06% 4.04% 4.17% 4.06% 4.04%
Noninterest expense as
a percent of total
revenue (TE) before
amortization of
purchased intangibles,
net storm-related gain/
(loss), gain on sale of
credit card merchant and
securities transactions 59.79% 61.40% 61.51% 65.45% 67.98%
Common equity (period-end)
as a percent of total
assets (period-end) 9.36% 9.61% 9.36% 9.45% 9.15%
Leverage (Tier I) ratio 8.63% 8.80% 9.01% 8.82% 8.49%
Tangible common equity
ratio 8.24% 8.48% 8.24% 8.34% 8.08%
Net charge-offs as a
percent of average loans 0.19% 0.18% 0.18% 0.21% 0.26%
Allowance for loan losses
as a percent of period-
end loans 1.43% 1.41% 1.35% 1.31% 1.31%
Allowance for loan losses
to NPAs + loans 90 days
past due 694.67% 413.60% 410.98% 335.22% 241.43%
Loan/deposit ratio 64.34% 65.91% 69.62% 70.28% 72.33%
Noninterest income
excluding net storm-
related gain/(loss),
gain on sale of credit
card merchant and
securities transactions
as a percent of total
revenue (TE) 33.14% 32.96% 36.33% 36.83% 36.67%
-----------------------------
2008
-----------------------------
1Q 2Q 3Q
--------- --------- ---------
Per Common Share Data
---------------------
Earnings per share:
Basic $0.64 $0.67 $0.51
Diluted $0.63 $0.66 $0.50
Cash dividends per share $0.240 $0.240 $0.240
Book value per share (period-end) $18.41 $18.27 $18.95
Tangible book value per share
(period-end) $16.17 $16.06 $16.77
Weighted average number of shares:
Basic 31,346 31,382 31,471
Diluted 31,790 31,814 31,905
Period-end number of shares 31,372 31,386 31,702
Market data:
High closing price $44.29 $45.68 $68.42
Low closing price $33.45 $38.38 $33.34
Period end closing price $42.02 $39.29 $51.00
Trading volume 17,204 14,527 23,562
Other Period-end Data
---------------------
FTE headcount 1,877 1,903 1,941
Tangible common equity $507,287 $503,953 $531,800
Tier I capital $512,248 $527,479 $546,379
Goodwill $62,277 $62,277 $62,277
Amortizable intangibles $7,388 $6,762 $6,402
Mortgage servicing intangibles $477 $413 $357
Common shares repurchased for publicly
announced plans 0 0 0
Performance Ratios
------------------
Return on average assets 1.30% 1.36% 1.00%
Return on average common equity 14.13% 14.51% 10.90%
Earning asset yield (TE) 6.28% 6.03% 6.02%
Total cost of funds 2.47% 2.12% 2.03%
Net interest margin (TE) 3.80% 3.91% 3.99%
Noninterest expense as a percent of total
revenue (TE) before amortization of
purchased intangibles, net storm-related
gain/(loss), gain on sale of credit card
merchant and securities transactions 59.49% 60.26% 62.92%
Common equity (period-end) as a percent of
total assets (period-end) 8.99% 9.15% 8.91%
Leverage (Tier I) ratio 8.34% 8.57% 8.66%
Tangible common equity ratio 7.98% 8.13% 7.97%
Net charge-offs as a
percent of average loans 0.32% 0.27% 0.42%
Allowance for loan losses as
a percent of period-end loans 1.46% 1.41% 1.40%
Allowance for loan losses to
NPAs + loans 90 days past due 265.81% 203.06% 189.69%
Loan/deposit ratio 72.10% 74.82% 77.46%
Noninterest income excluding net storm-
related gain/(loss), gain on sale of
credit card merchant and securities
transactions as a percent of total
revenue (TE) 36.73% 36.52% 34.46%
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
---------- -------------------------------------------
2006 2007
---------- -------------------------------------------
4Q 1Q 2Q 3Q 4Q
---------- ---------- ---------- ---------- ----------
Asset Quality
Information
-----------
Non-accrual
loans $3,500 $4,494 $7,544 $8,500 $13,067
Foreclosed
assets 681 718 1,146 1,374 2,297
---------- ---------- ---------- ---------- ----------
Total non-
performing
assets $4,181 $5,212 $8,690 $9,874 $15,364
Non-performing
assets as a
percent of
loans and
foreclosed
assets 0.13% 0.16% 0.25% 0.28% 0.43%
Accruing loans
90 days past
due $2,552 $6,035 $2,558 $3,819 $4,154
Accruing loans
90 days past
due as a
percent of
loans 0.08% 0.18% 0.07% 0.11% 0.12%
Non-performing
assets +
accruing loans
90 days past
due to loans
and foreclosed
assets 0.21% 0.34% 0.33% 0.39% 0.54%
Net charge-offs $1,523 $1,466 $1,528 $1,880 $2,370
Net charge-offs
as a percent
of average
loans 0.19% 0.18% 0.18% 0.21% 0.26%
Allowance for
loan losses $46,772 $46,517 $46,227 $45,901 $47,123
Allowance for
loan losses as
a percent of
period-end
loans 1.43% 1.41% 1.35% 1.31% 1.31%
Allowance for
loan losses to
NPAs +
accruing loans
90 days past
due 694.67% 413.60% 410.98% 335.22% 241.43%
Provision for
(recovery of)
loan losses ($57) $1,211 $1,238 $1,554 $3,592
Net Charge-off
Information
-----------
Net charge-offs:
Commercial/real
estate loans ($137) $168 ($63) ($58) ($100)
Mortgage loans (11) 23 (22) -- 42
Direct consumer
loans 493 110 617 864 $886
Indirect
consumer loans 395 675 471 314 $518
Finance company
loans 783 489 525 760 $1,024
---------- ---------- ---------- ---------- ----------
Total net
charge-offs $1,523 $1,465 $1,528 $1,880 $2,370
---------- ---------- ---------- ---------- ----------
Average loans:
Commercial/real
estate loans $1,855,506 $1,931,966 $2,040,088 $2,106,778 $2,128,279
Mortgage loans 428,674 426,103 382,642 388,603 440,842
Direct consumer
loans 479,087 485,201 487,267 491,417 505,098
Indirect
consumer loans 350,829 357,008 360,451 373,677 385,093
Finance Company
loans 86,965 92,315 101,092 109,807 114,750
---------- ---------- ---------- ---------- ----------
Total
average
loans $3,201,061 $3,292,593 $3,371,540 $3,470,282 $3,574,062
Net charge-offs
to average
loans:
Commercial/real
estate loans -0.03% 0.04% -0.01% -0.01% -0.02%
Mortgage loans -0.01% 0.02% -0.02% 0.00% 0.04%
Direct consumer
loans 0.41% 0.09% 0.51% 0.70% 0.70%
Indirect
consumer loans 0.45% 0.77% 0.52% 0.33% 0.53%
Finance Company
loans 3.57% 2.15% 2.08% 2.74% 3.54%
---------- ---------- ---------- ---------- ----------
Total net
charge-offs to
average loans 0.19% 0.18% 0.18% 0.21% 0.26%
---------- ---------- ---------- ---------- ----------
--------------------------------
2008
--------------------------------
1Q 2Q 3Q
---------- ---------- ----------
Asset Quality Information
Non-accrual loans $12,983 $18,106 $21,875
Foreclosed assets 3,619 1,693 2,197
---------- ---------- ----------
Total non-performing assets $16,602 $19,799 $24,072
Non-performing assets as a percent of
loans and foreclosed assets 0.46% 0.52% 0.59%
Accruing loans 90 days past due $3,340 $6,449 $6,082
Accruing loans 90 days past due as a
percent of loans 0.09% 0.17% 0.15%
Non-performing assets + accruing
loans 90 days past due to loans and
foreclosed assets 0.55% 0.69% 0.74%
Net charge-offs $2,933 $2,495 $4,164
Net charge-offs as a percent of
average loans 0.32% 0.27% 0.42%
Allowance for loan losses $53,008 $53,300 $57,200
Allowance for loan losses as a
percent of period-end loans 1.46% 1.41% 1.40%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 265.81% 203.06% 189.69%
Provision for (recovery of) loan losses $8,818 $2,787 $8,064
Net Charge-off Information
Net charge-offs:
Commercial/real estate loans $834 $600 $1,556
Mortgage loans -- 61 179
Direct consumer loans $588 442 650
Indirect consumer loans $463 681 867
Finance company loans $1,048 711 912
---------- ---------- ----------
Total net charge-offs $2,933 $2,495 $4,164
---------- ---------- ----------
Average loans:
Commercial/real estate loans $2,224,695 $2,272,057 $2,453,154
Mortgage loans 399,374 413,076 427,752
Direct consumer loans 514,441 526,752 546,079
Indirect consumer loans 386,985 386,565 410,110
Finance Company loans 113,113 113,555 116,140
---------- ---------- ----------
Total average loans $3,638,608 $3,712,005 $3,953,235
Net charge-offs to average loans:
Commercial/real estate loans 0.15% 0.11% 0.25%
Mortgage loans 0.00% 0.06% 0.17%
Direct consumer loans 0.46% 0.34% 0.47%
Indirect consumer loans 0.48% 0.71% 0.84%
Finance Company loans 3.73% 2.52% 3.12%
---------- ---------- ----------
Total net charge-offs to average
loans 0.32% 0.27% 0.42%
---------- ---------- ----------
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
------- ----------------------------------
2006 2007
------- ----------------------------------
4Q 1Q 2Q 3Q 4Q
------- ----------------------------------
Income Statement
----------------
Interest income $87,104 $85,708 $84,937 $87,609 $87,559
Interest income (TE) 89,366 88,124 87,204 89,982 90,041
Interest expense 33,966 34,308 33,394 36,467 36,067
------- ----------------------------------
Net interest income (TE) 55,400 53,816 53,810 53,515 53,974
Provision for (recovery
of) loan losses (57) 1,211 1,238 1,554 3,592
Noninterest income
excluding net storm-
related gain/(loss) and
securities transactions 27,459 26,457 30,710 31,198 31,897
Net storm-related gain/
(loss) 5,084 -- -- -- --
Securities transactions
gains/(losses) (5,396) 6 34 34 234
Noninterest expense 50,042 49,708 52,374 55,857 58,804
------- ----------------------------------
Income before income
taxes 30,300 26,944 28,675 24,963 21,227
Income tax expense 8,538 7,715 8,352 7,224 4,627
------- ----------------------------------
Net income 21,762 19,229 20,323 17,739 16,600
======= ==================================
Noninterest Income and
----------------------
Noninterest Expense
-------------------
Service charges on
deposit accounts $9,402 $9,190 $10,471 $11,085 $11,182
Trust fees 3,624 3,693 4,124 3,892 4,194
Debit card & merchant
fees 1,983 2,291 2,618 2,571 2,645
Insurance fees 5,346 4,369 5,033 4,270 5,561
Investment & annuity fees 1,519 1,978 2,018 2,253 2,498
ATM fees 1,215 1,380 1,428 1,550 1,626
Secondary mortgage market
operations 945 911 1,116 935 761
Other income 3,425 2,645 3,902 4,642 3,430
------- ----------------------------------
Noninterest income
excluding net storm-
related gain/(loss) and
securities transactions $27,459 $26,457 $30,710 $31,198 $31,897
Net storm-related gain/
(loss) 5,084 -- -- -- --
Securities transactions
gains/(losses) (5,396) 6 34 34 234
------- ----------------------------------
Total noninterest income
including storm-related
gain/(loss) and
securities transactions $27,147 $26,463 $30,744 $31,232 $32,131
======= ==================================
Personnel expense $24,092 $26,563 $24,837 $28,531 $27,027
Occupancy expense (net) 3,335 4,073 4,469 4,731 6,162
Equipment expense 2,665 2,272 2,768 2,814 2,610
Other operating expense 19,451 16,377 19,916 19,369 22,573
Amortization of
intangibles 499 423 384 412 432
------- ----------------------------------
Total noninterest expense $50,042 $49,708 $52,374 $55,857 $58,804
------- ----------------------------------
-------------------------
2008
-------------------------
1Q 2Q 3Q
-------------------------
Income Statement
Interest income $84,813 $81,732 $84,132
Interest income (TE) 87,269 84,164 86,774
Interest expense 34,344 29,573 29,357
-------------------------
Net interest income (TE) 52,925 54,591 57,417
Provision for (recovery of) loan losses 8,818 2,787 8,064
Noninterest income excluding net
storm-related gain/(loss) and securities
transactions 30,728 31,412 30,194
Net storm-related gain/(loss) -- -- --
Securities transactions gains/(losses) 5,652 426 (79)
Noninterest expense 50,134 52,189 55,483
-------------------------
Income before income taxes 27,897 29,021 21,343
Income tax expense 7,840 8,037 5,338
-------------------------
Net income 20,057 20,984 16,005
=========================
Noninterest Income and Noninterest Expense
------------------------------------------
Service charges on deposit accounts $10,790 $10,879 $11,108
Trust fees 4,175 4,575 4,330
Debit card & merchant fees 2,540 2,884 2,805
Insurance fees 4,341 4,259 3,819
Investment & annuity fees 2,809 2,727 2,421
ATM fees 1,691 1,757 1,718
Secondary mortgage market operations 778 753 817
Other income 3,604 3,578 3,176
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Noninterest income excluding net
storm-related gain/(loss) and securities
transactions $30,728 $31,412 $30,194
Net storm-related gain/(loss) -- -- --
Securities transactions gains/(losses) 5,652 426 (79)
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Total noninterest income including
storm-related gain/(loss) and securities
transactions $36,380 $31,838 $30,115
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Personnel expense $25,631 $27,031 $28,664
Occupancy expense (net) 4,601 4,702 5,188
Equipment expense 2,909 2,785 2,711
Other operating expense 16,628 17,307 18,560
Amortization of intangibles 365 364 360
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Total noninterest expense $50,134 $52,189 $55,483
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