GULFPORT, Miss., Jan. 30, 2007 (PRIME NEWSWIRE) -- Hancock Holding Company (Nasdaq:HBHC) and Leo W. Seal, Jr., President of Hancock Holding Company, today announced earnings for the fourth quarter ended December 31, 2006. Hancock's fourth quarter 2006 earnings were $21.8 million, an increase of $2.7 million, or 14 percent, from the fourth quarter of 2005. Diluted earnings per share for the fourth quarter of 2006 were $0.65, an increase of $0.07 from the same quarter a year ago.
Net income for 2006 totaled $101.8 million, compared to $54.0 million reported for 2005, an increase of $47.8 million. Diluted earnings per share for 2006 were $3.06, compared to $1.64 for 2005, resulting in an increase of $1.42 per share.
Net income for both 2006 and 2005 was affected by several items related to the impact of Hurricane Katrina, which made landfall in the Company's operating region on August 29, 2005. In 2005, net income was negatively affected by storm-related items totaling $21.1 million on an after tax basis. The largest of 2005's items was the establishment of a $35.2 million (pre-tax) allowance for loan losses related to the storm. In the third quarter of 2006, the Company reversed $20.0 million from the storm-related allowance for loan losses due to better than expected loss experience with storm impacted credits. In addition, the Company negotiated a final settlement with the primary property and casualty insurance provider and recognized a $5.1 million gain in 2006's fourth quarter.
Hancock Holding Company Chief Executive Officers Carl J. Chaney and John M. Hairston both expressed gratitude and congratulations to all Hancock family members for their personal sacrifices in the aftermath of the 2005 storm and for a job well done in 2006. Both executives also expressed optimism for the continued rebuilding efforts in the Company's operating region.
Highlights and key operating items from Hancock's fourth quarter earnings are as follows:
* Net Income and Returns: Hancock's net income for the fourth quarter of 2006 was $21.8 million compared to $19.1 million for the same quarter a year ago. Return on average assets for the quarter was 1.44 percent compared to 1.39 percent for 2005's fourth quarter. Return on average common equity was 15.54 percent compared to 15.98 percent for the same quarter a year ago. * Insurance Settlement: In the fourth quarter the Company negotiated a final settlement with the primary property and casualty insurance provider for all claims related to the impact of Hurricane Katrina. A $5.1 million pretax gain related to the settlement was recorded in the fourth quarter. All of the Company's insurance claims related to the storm have now been settled. * Partial Restructuring of Securities Portfolio: During the fourth quarter, the interest rate environment presented Hancock with an opportunity to sell $162.9 million in certain U.S. Agency securities. The bonds were sold at a pretax book loss of $5.4 million and had a book yield of 3.81 percent. The proceeds were immediately reinvested in a combination of federal funds and other short-term instruments yielding approximately 5.18 percent. * Asset Quality & Allowance for Loan Losses: Hancock recorded a negative provision for loan losses of $57,000 in the fourth quarter, which when combined with the quarter's net charge-offs of $1.5 million, resulted in the $1.6 million reduction in the allowance for loan losses between September 30, 2006, and December 31, 2006. This negative provision was necessary to further adjust the allowance to the level dictated by the Company's reserving methodologies. Net charge-offs for the fourth quarter were $1.5 million, or 0.19 percent of average loans, down $1.1 million from the $2.6 million, or 0.34 percent of average loans, reported for the third quarter of 2006. Net charge-offs for the fourth quarter of 2005 were $3.1 million, or 0.41 percent of average loans. Total storm-related net charge-offs for all of 2006 were $1.8 million and for 2005 were $2.4 million. Non-performing assets as a percent of total loans and foreclosed assets was 0.13 percent at December 31, 2006, compared to 0.20 percent at September 30, 2006. Compared to the fourth quarter of 2005, the ratio of non-performing assets as a percent of total loans and foreclosed assets was down 29 basis points from the 0.42 percent reported at December 31, 2005. Non-performing assets decreased $2.0 million from September 30, 2006, reflecting primarily lower levels of non-accrual loans. The Company's ratio of accruing loans 90 days or more past due to total loans was 0.08 percent at December 31, 2006, compared to 0.12 percent at September 30, 2006, and to 0.86 percent at December 31, 2005. The Company's allowance for loan losses was $46.8 million at December 31, 2006, down $1.6 million from the $48.4 million reported at September 30, 2006, and $27.8 million lower than the $74.6 million reported at December 31, 2005. The ratio of the allowance for loan losses as a percent of period-end loans was 1.43 percent at December 31, 2006, and 1.54 percent at September 30, 2006. The allowance coverage ratio (allowance for loan losses to non-performers and past dues) was 695 percent for the fourth quarter of 2006, as compared to 196 percent for the fourth quarter of 2005. * Loans: At December 31, 2006, Hancock's total loans were $3.3 billion, which represented an increase of $277.4 million, or 9 percent, from December 31, 2005. Period-end loans were up $125.4 million, or 4 percent, compared to September 30, 2006. Average loans were up $120.6 million, or 16 percent annualized, from the third quarter. Of that increase, approximately $55.2 million of growth was in Louisiana, $42.0 million in Mississippi, and $23.4 million in Florida. The majority of the increase in average loans compared to last quarter was in commercial purpose loans (approximately $96.3 million). * Deposits: Period-end deposits for the fourth quarter were $5.0 billion, up $41.2 million, or 0.8 percent, from December 31, 2005, and were up $30.4 million, or 0.6 percent, from September 30, 2006. Average deposits were down $76.9 million, or 6 percent annualized, from the third quarter. The majority of the decrease in average deposits was in transaction deposits ($145.3 million) and public fund deposits ($58.0 million), while time deposits were up significantly ($126.3 million). The slower growth in deposits on an annual basis and the decline in the fourth quarter of 2006 was the result of the continued rebuilding efforts in the region following Hurricane Katrina. * Net Interest Income: Net interest income (te) for the fourth quarter increased $0.9 million, or 2 percent, from the fourth quarter of 2005, but was $3.9 million lower than the third quarter of 2006. The Company's net interest margin (te) was 4.06 percent in the fourth quarter, 38 basis points narrower than the same quarter a year ago, and 23 basis points narrower than the previous quarter. Compared to the same quarter a year ago, the primary driver of the $0.9 million increase in net interest income (te) was a $548.7 million, or 11 percent, increase in average earning assets, mainly from average deposit inflows of $461.6 million or 10 percent. As mentioned, the net interest margin (te) narrowed 38 basis points. As the increase in the average earning asset yield (40 basis points) did not offset the increase in total funding costs (78 basis points). The Company's level of net interest income (te) in the fourth quarter decreased $3.9 million, or 7 percent, from the prior quarter. The net interest margin (te) narrowed 23 basis points from the prior quarter as the yield on average earning assets decreased 5 basis points, while total funding costs were up 17 basis points. * Non-interest income & operating expense: Excluding the impact of storm-related gains/(losses) and securities transactions, non-interest income for the fourth quarter was up $4.4 million, or 19 percent, compared to the same quarter a year ago. Non-interest income was up $1.8 million, or 7 percent, compared to the third quarter. The primary factors impacting the higher levels of non-interest income as compared to the same quarter a year ago, were higher levels of service charge fees (up $2.6 million, or 37 percent). In addition, trust fees were up $0.7 million, when compared to the same quarter a year ago. The increase in non-interest income for the fourth quarter (excluding securities transactions) compared to the prior quarter was due to increases in insurance fees (up $1.2 million) and trust fees (up $0.5 million). Operating expenses for the fourth quarter were $5.4 million, or 12 percent, higher compared to the same quarter a year ago and were $0.3 million, or 1 percent, lower than the previous quarter. The increase from the same quarter a year ago was reflected in higher levels of professional services (up $3.2 million), data processing expense (up $.5 million), communication expense (up $.5 million) and all other expenses (up $1.2 million).
Hancock Holding Company -- parent company of Hancock Bank (Mississippi), Hancock Bank of Louisiana, Hancock Bank of Florida, and Magna Insurance Company -- has assets of $6.0 billion. Founded in 1899, Hancock Bank stands among the strongest, safest financial institutions in the United States and is the only financial services company headquartered in the Gulf South to rate among the top 20 percent of America's top-performing banks. Hancock offers comprehensive financial solutions through more than 140 banking and financial services offices and more than 131 automated teller machines across south Mississippi, Louisiana, south Alabama, and the Florida Panhandle. Additional corporate information and on-line banking and bill pay services are available at www.hancockbank.com.
The Hancock Holding Company logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2758
"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 Twelve Months Ended ------------------------------------------------ ------------------ 12/31/06 9/30/06 12/31/05 12/31/06 12/31/05 -------- -------- -------- -------- -------- Per Common Share Data ----------- Earnings per share: Basic $ 0.67 $ 1.11 $ 0.59 $ 3.13 $ 1.67 Diluted $ 0.65 $ 1.08 $ 0.58 $ 3.06 $ 1.64 Cash dividends per share $ 0.240 $ 0.240 $ 0.195 $ 0.895 $ 0.720 Book value per share (period-end) $ 17.09 $ 16.64 $ 14.78 $ 17.09 $ 14.78 Tangible book value per share (period-end) $ 14.87 $ 14.47 $ 12.55 $ 14.87 $ 12.55 Weighted average number of shares: Basic 32,632 32,566 32,313 32,534 32,365 Diluted 33,378 33,333 32,980 33,304 32,966 Period-end number of shares 32,666 32,584 32,301 32,666 32,301 Market data: High closing price $ 56.00 $ 56.79 $ 39.90 $ 57.19 $ 39.90 Low closing price $ 50.85 $ 49.71 $ 31.08 $ 37.75 $ 28.25 Period end closing price $ 52.84 $ 53.55 $ 37.81 $ 52.84 $ 37.81 Trading volume 6,393 8,135 6,829 27,275 22,404 Other Period- end Data ------------- FTE headcount 1,848 1,788 1,735 1,848 1,735 Tangible common equity $485,778 $471,387 $405,216 $485,778 $405,216 Tier I capital $510,638 $487,668 $420,281 $510,638 $420,281 Goodwill $ 62,277 $ 59,683 $ 61,418 $ 62,277 $ 61,418 Amortizable intangibles $ 9,414 $ 9,938 $ 9,204 $ 9,414 $ 9,204 Mortgage servicing intangibles $ 941 $ 1,093 $ 1,577 $ 941 $ 1,577 Common shares repurchased for publicly announced plans -- -- -- 39 148 Performance Ratios ----------- Return on average assets 1.44% 2.36% 1.39% 1.69% 1.10% Return on average common equity 15.54% 27.58% 15.98% 19.82% 11.36% Earning asset yield (TE) 6.54% 6.60% 6.14% 6.41% 6.08% Total cost of funds 2.48% 2.30% 1.70% 2.18% 1.68% Net interest margin (TE) 4.06% 4.29% 4.44% 4.23% 4.40% Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles, net storm-related gain/ (loss) and securities transactions 59.79% 58.76% 56.89% 58.99% 58.82% Common equity (period-end) as a percent of total assets (period-end) 9.36% 8.86% 8.02% 9.36% 8.02% Leverage (Tier I) ratio 8.63% 8.15% 7.85% 8.63% 7.85% Tangible common equity ratio 8.24% 7.79% 6.89% 8.24% 6.89% Net charge-offs as a percent of average loans 0.19% 0.34% 0.41% 0.23% 0.30% Allowance for loan losses as a percent of period-end loans 1.43% 1.54% 2.49% 1.43% 2.49% Allowance for loan losses to NPAs + accruing loans 90 days past due 694.67% 494.65% 195.50% 694.67% 195.50% Loan/deposit ratio 64.34% 60.97% 66.44% 60.41% 72.05% Non-interest income excluding net storm-related gain/(loss) and securities trans- actions as a percent of total revenue (TE) 33.14% 30.18% 29.68% 30.87% 31.86% Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) --------------------------------------------------------------------- Three Months Ended Twelve Months Ended --------------------------------------------- ---------------------- 12/31/06 9/30/06 12/31/05 12/31/06 12/31/05 ---------- ---------- ---------- ---------- ---------- Asset Quality Information ------------- Non-accrual loans $ 3,500 $ 5,179 $ 10,617 $ 3,500 $ 10,617 Foreclosed assets 681 970 1,898 681 1,898 ---------- ---------- ---------- ---------- ---------- Total non- performing assets $ 4,181 $ 6,149 $ 12,515 $ 4,181 $ 12,515 ---------- ---------- ---------- ---------- ---------- Non-performing assets as a percent of loans and fore- closed assets 0.13% 0.20% 0.42% 0.13% 0.42% Accruing loans 90 days past due $ 2,552 $ 3,626 $ 25,622 $ 2,552 $ 25,622 Accruing loans 90 days past due as a percent of loans 0.08% 0.12% 0.86% 0.08% 0.86% Non-per- forming assets + accruing loans 90 days past due to loans and fore- closed assets 0.21% 0.31% 1.28% 0.21% 1.28% Net charge- offs $ 1,523 $ 2,608 $ 3,104 $ 7,024 $ 8,759 Net charge- offs as a percent of average loans 0.19% 0.34% 0.41% 0.23% 0.30% Allowance for loan losses $ 46,772 $ 48,352 $ 74,558 $ 46,772 $ 74,558 Allowance for loan losses as a percent of period- end loans 1.43% 1.54% 2.49% 1.43% 2.49% Allowance for loan losses to NPAs + accruing loans 90 days past due 694.67% 494.65% 195.50% 694.67% 195.50% Provision for loan losses $ (57) $ (20,000) $ 1,079 $ (20,762) $ 42,635 Allowance for Loan Losses ------------- Beginning Balance $ 48,352 $ 70,960 $ 76,584 $ 74,558 $ 40,682 Provision for loan loss (57) (20,000) 1,079 (20,762) 42,635 Charge-offs 4,493 6,358 4,546 19,515 15,811 Recoveries 2,970 3,750 1,442 12,491 7,052 ----------- Net charge- offs 1,523 2,608 3,104 7,024 8,759 ----------- Ending Balance $ 46,772 $ 48,352 $ 74,558 $ 46,772 $ 74,558 ---------- ---------- ---------- ---------- ---------- Net Charge-off Information -------------- Net charge- offs: Commercial/ real estate loans $ (137) $ 522 $ 332 $ (559) $ 1,287 Mortgage loans (11) 367 (7) 360 63 Direct consumer loans 493 1,003 1,831 3,756 3,684 Indirect consumer loans 395 294 272 1,734 1,692 Finance company loans 783 422 676 1,733 2,033 ---------- ---------- ---------- ---------- ---------- Total net charge- offs $ 1,523 $ 2,608 $ 3,104 $ 7,024 $ 8,759 ========== ========== ========== ========== =========== Average loans: Commercial/ real estate loans $1,855,506 $1,759,173 $1,660,804 $1,747,816 $1,565,369 Mortgage loans 428,674 423,610 442,977 418,273 424,654 Direct consumer loans 479,087 470,771 489,150 470,942 501,677 Indirect consumer loans 350,829 347,404 342,203 349,518 328,679 Finance Company loans 86,965 79,483 63,663 75,673 62,640 ---------- ---------- ---------- ---------- ---------- Total average loans $3,201,061 $3,080,442 $2,998,797 $3,062,222 $2,883,020 Net charge- offs to average loans: Commercial/ real estate loans -0.03% 0.12% 0.08% -0.03% 0.08% Mortgage loans -0.01% 0.34% -0.01% 0.09% 0.01% Direct consumer loans 0.41% 0.85% 1.49% 0.80% 0.73% Indirect consumer loans 0.45% 0.34% 0.32% 0.50% 0.51% Finance Company loans 3.57% 2.11% 4.21% 2.29% 3.25% ---------- ---------- ---------- ---------- ---------- Total net charge-offs to average loans 0.19% 0.34% 0.41% 0.23% 0.30% Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) --------------------------------------------------------------------- Three Months Ended Twelve Months Ended ------------------------------------------------ ------------------- 12/31/06 9/30/06 12/31/05 12/31/06 12/31/05 -------- -------- -------- -------- -------- Income Statement ---------------- Interest income $87,104 $ 89,233 $73,429 $344,330 $263,631 Interest income (TE) 89,366 91,275 75,433 352,592 271,008 Interest expense 33,966 31,988 20,911 119,863 74,819 ------- -------- ------- -------- -------- Net interest income (TE) 55,400 59,286 54,522 232,730 196,189 Provision for loan losses (57) (20,000) 1,079 (20,762) 42,635 Noninterest income excluding net storm-related gain/(loss) and securities transactions 27,460 25,627 23,016 103,918 91,738 Net storm-related gain/(loss) 5,084 -- (5,692) 5,084 6,584 Securities transactions gains/(losses) (5,396) 110 (27) (5,169) (53) Noninterest expense 50,042 50,336 44,626 200,716 171,543 ------- -------- ------- -------- -------- Income before income taxes 30,300 52,645 24,112 148,347 72,903 Income tax expense 8,538 16,614 5,047 46,544 18,871 ------- -------- ------- -------- -------- Net income $21,762 $ 36,031 $19,065 $101,802 $ 54,032 ======= ======== ======= ======== ======== Noninterest Income and Noninterest Expense ------------------- Service charges on deposit accounts $ 9,402 $ 9,719 $ 6,850 $ 36,228 $ 34,773 Trust fees 3,624 3,175 2,946 13,286 11,107 Debit card & merchant fees 1,983 1,744 1,717 7,298 4,878 Insurance fees 5,346 4,146 4,837 19,246 17,099 Investment & annuity fees 1,519 1,595 1,037 5,970 5,076 ATM fees 1,215 1,223 805 5,005 4,202 Secondary mortgage market operations 945 1,018 670 3,528 2,221 Other income 3,426 3,009 4,154 13,358 12,381 ------- -------- ------- -------- -------- Noninterest income excluding net storm-related gain/(loss) and securities transactions $27,460 $ 25,627 $23,016 $103,918 $ 91,738 Net storm-related gain/(loss) 5,084 -- (5,692) 5,084 6,584 Securities transactions gains/(losses) (5,396) 110 (27) (5,169) (53) ------- -------- ------- -------- -------- Total noninterest income including net storm-related gain/(loss) and securities transactions $27,147 $ 25,737 $17,298 $103,833 $ 98,270 ======= ======== ======= ======== ======== Personnel expense $24,092 $ 27,059 $24,580 $103,753 $ 94,158 Occupancy expense (net) 3,335 2,882 3,237 13,350 10,926 Equipment expense 2,665 2,647 2,511 10,796 9,553 Other operating expense 19,451 17,304 13,780 70,692 54,712 Amortization of intangibles 499 445 518 2,125 2,194 ------- -------- ------- -------- -------- Total noninterest expense $50,042 $ 50,336 $44,626 $200,716 $171,543 ======= ======== ======= ======== ======== Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) --------------------------------------------------------------------- Three Months Ended Twelve Months Ended --------------------------------------------- ---------------------- 12/31/06 9/30/06 12/31/05 12/31/06 12/31/05 ---------- ---------- ---------- ---------- ---------- Period-end Balance Sheet -------------- Commercial/ real estate loans $1,912,076 $1,800,643 $1,677,716 $1,912,076 $1,677,716 Mortgage loans 426,534 430,086 423,563 426,534 423,563 Direct consumer loans 484,704 477,142 477,716 484,704 477,716 Indirect consumer loans 353,032 350,013 346,071 353,032 346,071 Finance Company loans 90,236 83,278 64,121 90,236 64,121 ---------- ---------- ---------- ---------- ---------- Total loans 3,266,583 3,141,162 2,989,186 3,266,583 2,989,186 Securities 1,903,658 2,303,396 1,959,261 1,903,658 1,959,261 Short-term investments 222,439 74,902 410,226 222,439 410,226 ---------- ---------- ---------- ---------- ---------- Earning assets 5,392,680 5,519,461 5,358,673 5,392,680 5,358,673 ---------- ---------- ---------- ---------- ---------- Allowance for loan losses (46,772) (48,352) (74,558) (46,772) (74,558) Other assets 618,656 650,556 666,073 618,656 666,073 ---------- ---------- ---------- ---------- ---------- Total assets $5,964,565 $6,121,665 $5,950,187 $5,964,565 $5,950,187 ========== ========== ========== ========== ========== Noninterest bearing deposits $1,057,358 $1,062,348 $1,324,938 $1,057,358 $1,324,938 Interest bearing transaction deposits 1,485,156 1,510,785 1,680,959 1,485,156 1,680,959 Interest bearing Public Fund deposits 733,788 795,927 633,488 733,788 633,488 Time deposits 1,754,690 1,631,504 1,350,436 1,754,690 1,350,436 ---------- ---------- ---------- ---------- ---------- Total interest bearing deposits 3,973,633 3,938,216 3,664,882 3,973,633 3,664,882 ---------- ---------- ---------- ---------- ---------- Total deposits 5,030,991 5,000,565 4,989,820 5,030,991 4,989,820 Other borrowed funds 227,027 430,827 307,429 227,027 307,429 Other liabilities 148,137 148,173 175,523 148,137 175,523 Common shareholders' equity 558,410 542,101 477,415 558,410 477,415 ---------- ---------- ---------- ---------- ---------- Total liabilities & common equity $5,964,565 $6,121,665 $5,950,187 $5,964,565 $5,950,187 ========== ========== ========== ========== ========== Average Balance Sheet -------------- Commercial/ real estate loans $1,855,506 $1,759,173 $1,660,804 $1,747,816 $1,565,369 Mortgage loans 428,674 423,610 442,977 418,273 424,654 Direct consumer loans 479,087 470,771 489,150 470,942 501,677 Indirect consumer loans 350,829 347,404 342,203 349,518 328,679 Finance Company loans 86,965 79,483 63,663 75,673 62,640 ---------- ---------- ---------- ---------- ---------- Total loans 3,201,061 3,080,442 2,998,797 3,062,222 2,883,020 Securities 2,153,908 2,334,242 1,571,723 2,228,822 1,434,415 Short-term investments 81,675 94,026 317,409 211,511 137,821 ---------- ---------- ---------- ---------- ---------- Earning average assets 5,436,644 5,508,709 4,887,929 5,502,555 4,455,256 ---------- ---------- ---------- ---------- ---------- Allowance for loan losses (47,804) (61,525) (76,488) (64,285) (50,107) Other assets 602,104 602,833 612,144 593,530 525,881 ---------- ---------- ---------- ---------- ---------- Total assets $5,990,944 $6,050,017 $5,423,586 $6,031,800 $4,931,030 ========== ========== ========== ========== ========== Noninterest bearing deposits $1,039,846 $1,098,716 $1,126,356 $1,128,850 $ 822,733 Interest bearing transaction deposits 1,495,724 1,590,319 1,573,039 1,623,596 1,384,606 Interest bearing Public Fund deposits 742,063 791,825 568,803 771,146 644,849 Time deposits 1,697,427 1,571,129 1,245,271 1,545,834 1,149,239 ---------- ---------- ---------- ---------- ---------- Total interest bearing deposits 3,935,214 3,953,272 3,387,112 3,940,577 3,178,694 ---------- ---------- ---------- ---------- ---------- Total deposits 4,975,060 5,051,988 4,513,468 5,069,427 4,001,426 Other borrowed funds 321,292 304,686 263,358 281,183 293,899 Other liabilities 138,905 175,092 173,555 167,534 160,003 Common shareholders' equity 555,687 518,250 473,204 513,656 475,701 ---------- ---------- ---------- ---------- ---------- Total liabilities & common equity $5,990,944 $6,050,017 $5,423,586 $6,031,800 $4,931,030 ========== ========== ========== ========== ========== Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) --------------------------------------------------------------------- Three Months Ended Twelve Months Ended --------------------------------------------- ---------------------- 12/31/06 9/30/06 12/31/05 12/31/06 12/31/05 ---------- ---------- ---------- ---------- ---------- Average Balance Sheet Mix --------------- Percentage of earning assets/ funding sources: Loans 58.88% 55.92% 61.35% 55.65% 64.71% Securities 39.62% 42.37% 32.16% 40.51% 32.20% Short-term investments 1.50% 1.71% 6.49% 3.84% 3.09% ---------- ---------- ---------- ---------- ---------- Earning average assets 100.00% 100.00% 100.00% 100.00% 100.00% ========== ========== ========== ========== ========== Noninterest bearing deposits 19.13% 19.95% 23.04% 20.52% 18.47% Interest bearing transaction deposits 27.51% 28.87% 32.18% 29.51% 31.08% Interest bearing Public Fund deposits 13.65% 14.37% 11.64% 14.01% 14.47% Time deposits 31.22% 28.52% 25.48% 28.09% 25.80% ---------- ---------- ---------- ---------- ---------- Total deposits 91.51% 91.71% 92.34% 92.13% 89.81% Other borrowed funds 5.91% 5.53% 5.39% 5.11% 6.60% Other net interest- free funding sources 2.58% 2.76% 2.27% 2.76% 3.59% ---------- ---------- ---------- ---------- ---------- Total average funding sources 100.00% 100.00% 100.00% 100.00% 100.00% ========== ========== ========== ========== ========== Loan mix: Commercial/ real estate loans 57.97% 57.11% 55.38% 57.08% 54.30% Mortgage loans 13.39% 13.75% 14.77% 13.66% 14.73% Direct consumer loans 14.97% 15.28% 16.31% 15.38% 17.40% Indirect consumer loans 10.96% 11.28% 11.41% 11.41% 11.40% Finance Company loans 2.72% 2.58% 2.12% 2.47% 2.17% ---------- ---------- ---------- ---------- ---------- Total loans 100.00% 100.00% 100.00% 100.00% 100.00% ========== ========== ========== ========== ========== Average dollars (in thousands): Loans $3,201,061 $3,080,442 $2,998,797 $3,062,222 $2,883,020 Securities 2,153,908 2,334,242 1,571,723 2,228,822 1,434,415 Short-term investments 81,675 94,026 317,409 211,511 137,821 ---------- ---------- ---------- ---------- ---------- Earning average assets $5,436,644 $5,508,709 $4,887,929 $5,502,555 $4,455,256 Noninterest bearing deposits $1,039,846 $1,098,716 $1,126,356 $1,128,850 $ 822,733 Interest bearing transaction deposits 1,495,724 1,590,319 1,573,039 1,623,596 1,384,606 Interest bearing Public Fund deposits 742,063 791,825 568,803 771,146 644,849 Time deposits 1,697,427 1,571,129 1,245,271 1,545,834 1,149,239 ---------- ---------- ---------- ---------- ---------- Total deposits 4,975,060 5,051,988 4,513,468 5,069,427 4,001,426 Other borrowed funds 321,292 304,686 263,358 281,183 293,899 Other net interest- free funding sources 140,292 152,035 111,103 151,946 159,930 ---------- ---------- ---------- ---------- ---------- Total average funding sources $5,436,644 $5,508,709 $4,887,929 $5,502,555 $4,455,256 Loans: Commercial/ real estate loans $1,855,506 $1,759,173 $1,660,804 $1,747,816 $1,565,369 Mortgage loans 428,674 423,610 442,977 418,273 424,654 Direct consumer loans 479,087 470,771 489,150 470,942 501,677 Indirect consumer loans 350,829 347,404 342,203 349,518 328,679 Finance Company loans 86,965 79,483 63,663 75,673 62,640 ---------- ---------- ---------- ---------- ---------- Total average loans $3,201,061 $3,080,442 $2,998,797 $3,062,222 $2,883,020 Hancock Holding Company Average Balance and Net Interest Margin Summary (amounts in thousands) (unaudited) Three Months Ended -------------------------------------------------------- 12/31/06 09/30/06 -------------------------------------------------------- Interest Volume Rate Interest Volume Rate ---------- ---------- ----- ---------- ---------- ----- Average Earning Assets Commercial & real estate loans (TE) $ 34,210 $1,855,506 7.32% $ 32,520 $1,759,173 7.34% Mortgage loans 6,516 428,674 6.08% 6,411 423,610 6.05% Consumer loans 19,890 916,881 8.61% 19,547 897,658 8.64% Loan fees & late charges 1,510 -- 0.00% 2,710 -- 0.00% ---------- ---------- ----- ---------- ---------- ----- Total loans (TE) 62,126 3,201,061 7.71% 61,188 3,080,442 7.89% US treasury securities 1,081 84,281 5.09% 855 67,966 4.99% US agency securities 14,505 1,181,943 4.91% 16,456 1,356,478 4.85% CMOs 1,268 124,850 4.06% 1,439 145,494 3.96% Mortgage backed securities 5,920 490,990 4.82% 6,231 511,372 4.87% Municipals (TE) 2,422 190,739 5.08% 2,935 174,744 6.72% Other securities 968 81,105 4.77% 1,042 78,188 5.33% ---------- ---------- ----- ---------- ---------- ----- Total securities (TE) 26,165 2,153,908 4.86% 28,958 2,334,242 4.96% Total short-term investments 1,075 81,675 5.22% 1,128 94,026 4.76% Average earning assets yield (TE) $ 89,366 $5,436,644 6.54% $ 91,275 $5,508,709 6.60% Interest- bearing Liabilities Interest- bearing transaction deposits $ 3,930 $1,495,724 1.04% $ 3,955 $1,590,319 0.99% Time deposits 18,999 1,697,427 4.44% 16,353 1,571,129 4.13% Public Funds 8,318 742,063 4.45% 8,629 791,825 4.32% ---------- ---------- ----- ---------- ---------- ----- Total interest bearing deposits 31,247 3,935,214 3.15% 28,936 3,953,272 2.90% Customer repos 3,061 298,163 4.07% 2,785 271,582 4.07% Other borrowings (342) 23,129 -5.87% 267 33,104 3.20% ---------- ---------- ----- ---------- ---------- ----- Total borrowings 2,719 321,292 3.36% 3,052 304,686 3.97% Total interest bearing liab cost$ 33,966 $4,256,506 3.17% $ 31,988 $4,257,959 2.98% Noninterest- bearing deposits 1,039,846 1,098,716 Other net interest- free funding sources 140,292 152,035 Total Cost of Funds $ 33,966 $5,436,644 2.48% $ 31,988 $5,508,709 2.30% Net Interest Spread (TE)$ 55,400 3.38% $ 59,286 3.62% Net Interest Margin (TE)$ 55,400 $5,436,644 4.06% $ 59,286 $5,508,709 4.29% ------------------------------ 12/31/05 ------------------------------ Interest Volume Rate ---------- ---------- ---- Average Earning Assets Commercial & real estate loans (TE) $ 28,365 $1,660,804 6.78% Mortgage loans 6,119 442,977 5.53% Consumer loans 17,797 895,016 7.89% Loan fees & late charges 2,104 -- 0.00% ---------- ---------- ---- Total loans (TE) 54,386 2,998,797 7.20% US treasury securities 350 33,735 4.11% US agency securities 7,403 678,190 4.37% CMOs 1,946 206,910 3.76% Mortgage backed securities 4,917 430,409 4.57% Municipals (TE) 2,747 159,401 6.89% Other securities 633 63,078 4.01% ---------- ---------- ---- Total securities (TE) 17,995 1,571,723 4.58% Total short-term investments 3,052 317,409 3.81% Average earning assets yield (TE) $ 75,433 $4,887,929 6.14% Interest-bearing Liabilities Interest-bearing transaction deposits $ 2,836 $1,573,039 0.72% Time deposits 11,503 1,245,271 3.66% Public Funds 4,825 568,803 3.37% ---------- ---------- ---- Total interest bearing deposits 19,164 3,387,112 2.24% Customer repos 1,125 204,386 2.18% Other borrowings 622 58,972 4.18% ---------- ---------- ---- Total borrowings 1,747 263,358 2.63% Total interest bearing liab cost $ 20,911 $3,650,470 2.27% Noninterest-bearing deposits 1,126,356 Other net interest-free funding sources 111,103 Total Cost of Funds $ 20,911 $4,887,929 1.70% Net Interest Spread (TE) $ 54,522 3.87% Net Interest Margin (TE) $ 54,522 $4,887,929 4.44% Hancock Holding Company Average Balance and Net Interest Margin Summary (amounts in thousands) (unaudited) -------------------------------------------------------- Twelve Months Ended -------------------------------------------------------- 12/31/2006 12/31/2005 --------------------------- --------------------------- Interest Volume Rate Interest Volume Rate ---------- ---------- ---- ---------- ---------- ---- Average Earning Assets Commercial & real estate loans (TE) $ 125,980 $1,747,816 7.21% $ 100,212 $1,565,369 6.40% Mortgage loans 24,805 418,273 5.93% 23,623 424,654 5.56% Consumer loans 75,266 896,133 8.40% 68,997 892,997 7.73% Loan fees & late charges 9,016 -- 0.00% 8,615 -- 0.00% ---------- ---------- ---- ---------- ---------- ---- Total loans (TE) 235,067 3,062,222 7.68% 201,447 2,883,020 6.99% US treasury securities 3,018 63,668 4.74% 532 16,838 3.16% US agency securities 60,700 1,270,127 4.78% 21,500 514,834 4.18% CMOs 6,142 154,673 3.97% 9,492 241,473 3.93% Mortgage backed securities 23,313 491,130 4.75% 19,407 437,037 4.44% Municipals (TE) 10,766 171,886 6.26% 11,251 161,464 6.97% Other securities 3,826 77,337 4.95% 2,822 62,769 4.50% ---------- ---------- ---- ---------- ---------- ---- Total securities (TE) 107,766 2,228,822 4.84% 65,003 1,434,415 4.53% Total short-term investments 9,759 211,511 4.61% 4,559 137,821 3.31% Average earning assets yield (TE) $ 352,592 $5,502,555 6.41% $ 271,008 $4,455,256 6.08% Interest- Bearing Liabilities Interest- bearing transaction deposits $ 14,931 $1,623,596 0.92% $ 9,203 $1,384,606 0.66% Time deposits 62,807 1,545,834 4.06% 40,654 1,149,239 3.54% Public Funds 32,354 771,146 4.20% 17,725 644,849 2.75% ---------- ---------- ---- ---------- ---------- ---- Total interest bearing deposits 110,092 3,940,577 2.79% 67,581 3,178,694 2.13% Customer repos 9,060 250,603 3.62% 4,351 224,842 1.94% Other borrowings 711 30,579 2.32% 2,887 69,057 4.18% ---------- ---------- ---- ---------- ---------- ---- Total borrowings 9,770 281,183 3.47% 7,238 293,899 2.46% Total interest bearing liab cost $ 119,863 $4,221,760 2.84% $ 74,819 $3,472,593 2.15% Noninterest- bearing deposits 1,128,850 822,733 Other net interest- free funding sources 151,946 159,930 Total Cost of Funds $ 119,863 $5,502,555 2.18% $ 74,819 $4,455,256 1.68% Net Interest Spread (TE) $ 232,730 3.57% $ 196,189 3.93% Net Interest Margin (TE) $ 232,730 $5,502,555 4.23% $ 196,189 $4,455,256 4.40% Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) ----------------------------------------------- (unaudited) 2005 ----------------------------------------------- 1Q 2Q 3Q 4Q ----------------------------------------------- Per Common Share Data Earnings per share: Basic $0.48 $0.56 $0.04 $0.59 Diluted $0.47 $0.55 $0.04 $0.58 Cash dividends per share $0.165 $0.165 $0.195 $0.195 Book value per share (period-end) $14.16 $14.87 $14.52 $14.78 Tangible book value per share (period-end) $11.99 $12.73 $12.25 $12.55 Weighted average number of shares: Basic 32,463 32,396 32,308 32,313 Diluted 33,019 32,928 32,940 32,980 Period-end number of shares 32,463 32,310 32,309 32,301 Market data: High closing price $34.20 $34.87 $37.84 $39.90 Low closing price $30.25 $28.25 $29.93 $31.08 Period end closing price $32.50 $34.40 $34.14 $37.81 Trading volume 3,286 3,527 8,760 6,829 Other Period-end Data FTE headcount 1,766 1,813 1,590 1,735 Tangible common equity $389,344 $411,203 $395,843 $405,216 Tier I capital $408,163 $416,312 $407,075 $420,281 Goodwill $55,409 $55,409 $61,428 $61,418 Amortizable intangibles $12,510 $11,746 $9,928 $9,204 Mortgage servicing intangibles $2,288 $2,082 $1,860 $1,577 Common shares repurchased for publicly announced plans 40 96 12 -- Performance Ratios Return on average assets 1.32% 1.52% 0.12% 1.39% Return on average common equity 13.32% 15.27% 1.18% 15.98% Earning asset yield (TE) 5.90% 6.08% 6.19% 6.14% Total cost of funds 1.55% 1.66% 1.80% 1.70% Net interest margin (TE) 4.35% 4.42% 4.40% 4.44% 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 59.99% 57.83% 60.85% 56.89% Common equity (period-end) as a percent of total assets (period-end) 9.64% 10.03% 9.55% 8.02% Leverage (Tier I) ratio 8.75% 8.83% 8.64% 7.85% Tangible common equity ratio 8.28% 8.71% 8.17% 6.89% Net charge-offs as a percent of average loans 0.33% 0.24% 0.23% 0.41% Allowance for loan losses as a percent of period-end loans 1.48% 1.45% 2.57% 2.49% Allowance for loan losses to NPAs + loans 90 days past due 323.66% 284.75% 392.70% 195.50% Loan/deposit ratio 72.40% 73.63% 76.77% 66.44% 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) 32.77% 34.06% 31.10% 29.68% ----------------------------------------------- (unaudited) 2006 ----------------------------------------------- 1Q 2Q 3Q 4Q ----------------------------------------------- Per Common Share Data Earnings per share: Basic $0.68 $0.68 $1.11 $0.67 Diluted $0.67 $0.66 $1.08 $0.65 Cash dividends per share $0.195 $0.220 $0.240 $0.240 Book value per share (period-end) $15.06 $15.12 $16.64 $17.09 Tangible book value per share (period-end) $12.85 $12.94 $14.47 $14.87 Weighted average number of shares: Basic 32,393 32,531 32,566 32,632 Diluted 33,088 33,322 33,333 33,378 Period-end number of shares 32,494 32,555 32,584 32,666 Market data: High closing price $46.67 $57.19 $56.79 $56.00 Low closing price $37.75 $44.02 $49.71 $50.85 Period end closing price $46.52 $56.00 $53.55 $52.84 Trading volume 3,990 8,737 8,135 6,393 Other Period-end Data FTE headcount 1,768 1,777 1,788 1,848 Tangible common equity $417,684 $421,369 $471,387 $485,778 Tier I capital $440,302 $457,738 $487,668 $510,638 Goodwill $61,418 $59,060 $59,683 $62,277 Amortizable intangibles $8,725 $10,575 $9,938 $9,414 Mortgage servicing intangibles $1,384 $1,256 $1,093 $941 Common shares repurchased for publicly announced plans 17 22 -- -- Performance Ratios Return on average assets 1.49% 1.45% 2.36% 1.44% Return on average common equity 18.34% 17.89% 27.58% 15.54% Earning asset yield (TE) 6.17% 6.32% 6.60% 6.54% Total cost of funds 1.88% 2.05% 2.30% 2.48% Net interest margin (TE) 4.30% 4.27% 4.29% 4.06% 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 58.30% 59.13% 58.76% 59.79% Common equity (period-end) as a percent of total assets (period-end) 7.82% 8.00% 8.86% 9.36% Leverage (Tier I) ratio 7.45% 7.59% 8.15% 8.63% Tangible common equity ratio 6.75% 6.92% 7.79% 8.24% Net charge-offs as a percent of average loans -0.01% 0.40% 0.34% 0.19% Allowance for loan losses as a percent of period-end loans 2.49% 2.33% 1.54% 1.43% Allowance for loan losses to NPAs + loans 90 days past due 432.85% 457.10% 494.65% 694.67% Loan/deposit ratio 59.00% 57.40% 60.97% 64.34% 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) 29.92% 30.28% 30.18% 33.14% ----------------------------------------------- Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) ----------------------------------------------- (unaudited) 2005 ----------------------------------------------- 1Q 2Q 3Q 4Q ----------------------------------------------- Non-accrual loans $6,335 $8,052 $10,373 $10,617 Foreclosed assets 3,591 2,567 2,973 1,898 ----------------------------------------------- Total non-performing assets $9,926 $10,619 $13,346 $12,515 Non-performing assets as a percent of loans and foreclosed assets 0.36% 0.37% 0.45% 0.42% Accruing loans 90 days past due $2,798 $3,914 $6,156 $25,622 Accruing loans 90 days past due as a percent of loans 0.10% 0.14% 0.21% 0.86% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 0.46% 0.51% 0.65% 1.28% Net charge-offs $2,260 $1,691 $1,704 $3,104 Net charge-offs as a percent of average loans 0.33% 0.24% 0.23% 0.41% Allowance for loan losses $41,182 $41,382 $76,584 $74,558 Allowance for loan losses as a percent of period-end loans 1.48% 1.45% 2.57% 2.49% Allowance for loan losses to NPAs + accruing loans 90 days past due 323.66% 284.75% 392.70% 195.50% Provision for loan losses $2,760 $1,891 $36,905 $1,079 Net Charge-off Information Net charge-offs: Commercial/real estate loans $770 $202 ($17) $332 Mortgage loans 68 (5) 7 (7) Direct consumer loans 501 491 861 1,831 Indirect consumer loans 540 538 342 272 Finance company loans 381 465 511 676 ----------------------------------------------- Total net charge-offs $2,260 $1,691 $1,704 $3,104 ----------------------------------------------- Average loans: Commercial/real estate loans $1,491,008 $1,523,348 $1,584,244 $1,660,804 Mortgage loans 407,258 417,307 430,615 442,977 Direct consumer loans 503,700 509,628 504,362 489,150 Indirect consumer loans 313,542 323,100 335,482 342,203 Finance Company loans 60,720 62,124 64,006 63,663 -------------------------------------------------- Total average loans $2,776,229 $2,835,506 $2,918,709 $2,998,797 Net charge-offs to average loans: Commercial/real estate loans 0.21% 0.05% 0.00% 0.08% Mortgage loans 0.07% 0.00% 0.01% -0.01% Direct consumer loans 0.40% 0.39% 0.68% 1.49% Indirect consumer loans 0.70% 0.67% 0.40% 0.32% Finance Company loans 2.54% 3.00% 3.17% 4.21% -------------------------------------------------- Total net charge-offs to average loans 0.33% 0.24% 0.23% 0.41% ----------------------------------------------- (unaudited) 2006 ----------------------------------------------- 1Q 2Q 3Q 4Q ----------------------------------------------- Non-accrual loans $8,676 $7,237 $5,179 $3,500 Foreclosed assets 1,779 1,606 970 681 ------------------------------------------------- Total non-performing assets $10,455 $8,843 $6,149 $4,181 Non-performing assets as a percent of loans and foreclosed assets 0.35% 0.29% 0.20% 0.13% Accruing loans 90 days past due $6,632 $6,681 $3,626 $2,552 Accruing loans 90 days past due as a percent of loans 0.22% 0.22% 0.12% 0.08% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 0.57% 0.51% 0.31% 0.21% Net charge-offs ($108) $3,001 $2,608 $1,523 Net charge-offs as a percent of average loans -0.01% 0.40% 0.34% 0.19% Allowance for loan losses $73,961 $70,960 $48,352 $46,772 Allowance for loan losses as a percent of period-end loans 2.49% 2.33% 1.54% 1.43% Allowance for loan losses to NPAs + accruing loans 90 days past due 432.85% 457.10% 494.65% 694.67% Provision for loan losses ($705) -- ($20,000) ($57) Net Charge-off Information Net charge-offs: Commercial/real estate loans ($1,769) $620 $522 ($137) Mortgage loans 181 28 367 (11) Direct consumer loans 579 1,681 1,003 493 Indirect consumer loans 653 391 294 395 Finance company loans 248 281 422 783 ------------------------------------------------- Total net charge-offs ($108) $3,001 $2,608 $1,523 ------------------------------------------------- Average loans: Commercial/real estate loans $1,674,706 $1,699,768 $1,759,173 $1,855,506 Mortgage loans 410,023 410,522 423,610 428,674 Direct consumer loans 469,832 463,977 470,771 479,087 Indirect consumer loans 351,405 348,463 347,404 350,829 Finance Company loans 64,496 71,461 79,483 86,965 -------------------------------------------------- Total average loans $2,970,461 $2,994,191 $3,080,442 $3,201,061 Net charge-offs to average loans: Commercial/real estate loans -0.43% 0.15% 0.12% -0.03% Mortgage loans 0.18% 0.03% 0.34% -0.01% Direct consumer loans 0.50% 1.45% 0.85% 0.41% Indirect consumer loans 0.75% 0.45% 0.34% 0.45% Finance Company loans 1.56% 1.58% 2.11% 3.57% -------------------------------------------------- Total net charge-offs to average loans -0.01% 0.40% 0.34% 0.19% -------------------------------------------------- Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) ------------------------------------------------- (unaudited) 2005 ------------------------------------------------- 1Q 2Q 3Q 4Q ------------------------------------------------- Income Statement Interest income $60,531 $64,027 $65,644 $73,429 Interest income (TE) 62,302 65,767 67,506 75,433 Interest expense 16,289 17,961 19,659 20,911 ------------------------------------------------- Net interest income (TE) 46,013 47,807 47,847 54,522 Provision for loan losses 2,760 1,891 36,905 1,079 Noninterest income excluding net storm-related gain/(loss) and securities transactions 22,427 24,695 21,600 23,016 Net storm-related gain/(loss) -- - 12,276 (5,692) Securities transactions gains/(losses) 7 (15) (18) (27) Noninterest expense 41,642 42,505 42,770 44,626 ------------------------------------------------- Income before income taxes 22,273 26,350 168 24,112 Income tax expense 6,836 8,256 (1,267) 5,047 ------------------------------------------------ Net income $15,438 $18,094 $1,435 $19,065 ================================================ Noninterest Income and Noninterest Expense Service charges on deposit accounts $9,490 $10,459 $7,975 $6,850 Trust fees 2,541 2,859 2,761 2,946 Debit card & merchant fees 1,030 1,074 1,055 1,717 Insurance fees 3,881 3,499 4,883 4,837 Investment & annuity fees 1,188 1,547 1,304 1,037 ATM fees 1,372 1,154 871 805 Secondary mortgage market operations 499 676 377 670 Other income 2,426 3,428 2,374 4,154 ------------------------------------------------- Noninterest income excluding net storm-related gain/(loss) and securities transactions $22,427 $24,695 $21,600 $23,016 Net storm-related gain/(loss) -- -- 12,276 (5,692) Securities transactions gains/(losses) 7 (15) (18) (27) ------------------------------------------------- Total noninterest income including storm-related gain/(loss) and securities transactions $22,433 $24,680 $33,858 $17,298 ================================================= Personnel expense $22,379 $22,925 $24,275 $24,580 Occupancy expense (net) 2,495 2,576 2,617 3,237 Equipment expense 2,357 2,366 2,319 2,511 Other operating expense 13,828 14,059 13,044 13,780 Amortization of intangibles 584 578 514 518 ------------------------------------------------- Total noninterest expense $41,642 $42,505 $42,770 $44,626 ------------------------------------------------- (unaudited) 2006 ------------------------------------------------- 1Q 2Q 3Q 4Q ------------------------------------------------- Income Statement Interest income $81,590 $86,404 $89,233 $87,104 Interest income (TE) 83,563 88,375 91,275 89,366 Interest expense 25,273 28,636 31,988 33,966 ------------------------------------------------- Net interest income (TE) 58,290 59,740 59,286 55,400 Provision for loan losses (705) -- (20,000) (57) Noninterest income excluding net storm-related gain/(loss) and securities transactions 24,890 25,942 25,627 27,460 Net storm-related gain/(loss) -- -- -- 5,084 Securities transactions gains/(losses) 118 -- 110 (5,396) Noninterest expense 49,165 51,172 50,336 50,042 ------------------------------------------------- Income before income taxes 32,865 32,536 52,645 30,300 Income tax expense 10,854 10,539 16,614 8,538 ------------------------------------------------- Net income $22,011 $21,998 $36,031 $21,762 ================================================= Noninterest Income and Noninterest Expense Service charges on deposit accounts $7,884 $9,223 $9,719 $9,402 Trust fees 3,078 3,409 3,175 3,624 Debit card & merchant fees 1,709 1,863 1,744 1,983 Insurance fees 5,159 4,596 4,146 5,346 Investment & annuity fees 1,264 1,591 1,595 1,519 ATM fees 1,294 1,273 1,223 1,215 Secondary mortgage market operations 817 749 1,018 945 Other income 3,684 3,239 3,009 3,426 ------------------------------------------------- Noninterest income excluding net storm-related gain/(loss) and securities transactions $24,890 $25,942 $25,627 $27,460 Net storm-related gain/(loss) -- -- -- 5,084 Securities transactions gains/(losses) 118 -- 110 (5,396) ------------------------------------------------- Total noninterest income including storm-related gain/(loss) and securities transactions $25,008 $25,942 $25,737 $27,147 ================================================= Personnel expense $26,202 $26,400 $27,059 $24,092 Occupancy expense (net) 3,659 3,474 2,882 3,335 Equipment expense 2,668 2,816 2,647 2,665 Other operating expense 15,961 17,976 17,304 19,451 Amortization of intangibles 675 507 445 499 ------------------------------------------------- Total noninterest expense $49,165 $51,172 $50,336 $50,042 -------------------------------------------------