Hancock Holding Company Announces Earnings for Third Quarter 2008


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
                                             -------------------------
 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)
                                             -------------------------
 Total noninterest income including
  storm-related gain/(loss) and securities
  transactions                               $36,380  $31,838  $30,115
                                             =========================

 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
                                             -------------------------
 Total noninterest expense                   $50,134  $52,189  $55,483
                                             -------------------------


            

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