GULFPORT, Miss., July 22, 2008 (PRIME NEWSWIRE) -- Hancock Holding Company (Nasdaq:HBHC) today announced net income for the quarter ended June 30, 2008. Hancock's second quarter 2008 net income was $21.0 million, an increase of $0.7 million, or 3.3 percent, from the second quarter of 2007. Diluted earnings per share for the second quarter of 2008 were $0.66, an increase of $0.04 from the same quarter a year ago.
Compared to the first quarter of 2008, net income was $0.9 million, or 4.6 percent higher, while diluted earnings per share were up $0.03. Net income for the first six months of 2008 was $41.0 million, an increase of $1.5 million, or 3.8 percent, from the first half of 2007. Diluted earnings per share were $1.29 for the first half of 2008, an increase of $0.09 compared to the prior year.
Hancock Holding Company Chief Executive Officer Carl J. Chaney stated, "The Company is again pleased to report very impressive financial results for the second quarter and continues to prosper in these uncertain economic conditions. The second quarter produced an ROA of 1.36 percent and ROE of 14.51 percent on a strong capital base. The Company continues to grow our loan portfolio (up $149 million at quarter end); and our conservative underwriting philosophy has enabled us to continue reporting superior asset quality. We continue to see good results from our growth markets, especially New Orleans and Mobile. Hancock has always thrived in difficult times and will continue to do so in the current crisis."
Highlights and key operating items from Hancock's second quarter earnings are as follows:
* Net Income and Returns: Hancock's net income for the second quarter of 2008 was $21.0 million compared to $20.3 million for the same quarter a year ago, an increase of $0.7 million, or 3.3 percent, and an increase of $0.9 million, or 4.6 percent over the prior quarter. Return on average assets for the quarter was 1.36 percent compared to 1.30 percent for 2008's first quarter. Return on average common equity was 14.51 percent compared to 14.13 percent for the prior quarter. * Net Charge-offs and Non-performing Assets: Net charge-offs for the second quarter of 2008 were $2.5 million, or 0.27 percent of average loans, down $438 thousand from the $2.9 million, or 0.32 percent of average loans, reported for the first quarter of 2008. The majority of the decrease in net charge-offs as compared to the first quarter was reflected in commercial real estate loans. Non-performing assets as a percent of total loans and foreclosed assets was 0.52 percent at June 30, 2008, compared to 0.46 percent at March 31, 2008. The Company did report an increase in non- accrual loans of $5.1 million and a reduction of ORE of $1.9 million as compared to the first quarter. The majority of the increase reported in non-accrual loans was reflected in one builder relationship in the Tallahassee market. The relationship in question was adequately reserved at June 30, 2008. Loans 90 days past due or greater (accruing) as a percent of period end loans increased 8 basis points from March 31, 2008, to 0.17 percent at June 30, 2008. * Allowance for Loan Losses: Hancock recorded a provision for loan losses of $2.8 million in the second quarter which, when combined with the quarter's net charge-offs of $2.5 million, resulted in a $0.3 million increase in the allowance for loan losses between March 31, 2008, and June 30, 2008. This increase was necessary to adjust the allowance to the level dictated by the Company's reserving methodologies. The Company's allowance for loan losses was $53.3 million at June 30, 2008, up $0.3 million from the $53.0 million reported at March 31, 2008. The ratio of the allowance for loan losses as a percent of period-end loans was 1.41 percent at June 30, 2008, as compared to the 1.46 percent reported at March 31, 2008. The Company's first quarter increase in the allowance for loan losses of $6.4 million anticipated deterioration in certain credits reflected in this quarter's increase in non-accrual loans. Management believes the June 30, 2008, allowance level is adequate. * Loans: For the quarter ended June 30, 2008, Hancock's average total loans were $3.71 billion, which represented an increase of $340.5 million, or 10.1 percent, from the quarter ended June 30, 2007. Period-end loans were up $148.8 million, or 4.1 percent, compared to March 31, 2008. Average total loans were up $73.3 million, or 8.1 percent annualized, from the first quarter of 2008. Of that increase, approximately $30.7 million was in Louisiana, $23.4 million in Alabama, and $19.2 million in Florida. * Deposits: Period-end deposits for the second quarter were $5.02 billion, up $43.1 million, or 0.9 percent, from June 30, 2007, and were down $122.8 million, or 2.4 percent, from March 31, 2008. Average deposits were down $85.1 million, or 6.8 percent annualized, from the first quarter of 2008. The decreases in average deposits were in time deposits (down $161.6 million) and public fund deposits (down $15.8 million). These decreases were offset by increases in non-interest-bearing deposits (up $21.7 million) and interest-bearing transaction deposits (up $70.6 million). * Net Interest Income: Net interest income (te) for the second quarter increased $0.8 million, or 1.5 percent, from the second quarter of 2007, and increased $1.7 million from the first quarter of 2008, or 12.8 percent annualized. The net interest margin (te) of 3.90 percent was 27 basis points narrower than the same quarter a year ago. Growth in average earning asset levels were strong compared to the same quarter a year ago with an increase of $435.8 million, or 8.4 percent, mostly reflected in higher average loans (up $340.5 million, or 10.1 percent). With short-term interest rates down significantly from a year ago, the Company's loan yield fell 106 basis points, pushing the yield on average earning assets down 74 basis points. However, total funding costs over the past year were down only 47 basis points. Compared to the prior quarter, the net interest margin (te) widened 10 basis points, mostly due to a significant reduction in the Company's funding costs. The Company's total cost of funds was down 35 basis points compared to the previous quarter with rates on time deposits down 61 basis points. Over $609 million of time deposits matured in the second quarter at a weighted rate of 4.72 percent. The Company was able to retain and re-price 79 percent of those maturing deposits into lower rate CDs. As the interest rate environment stabilizes, the Company's net interest margin will continue to widen and return to a more normalized level. * Non-interest income: Non-interest income, excluding securities transactions, for the second quarter was up $0.7 million, or 2.2 percent, compared to the same quarter a year ago and was also up $0.7 million, or 2.2 percent, compared to the previous quarter. The primary factors impacting the higher levels of non-interest income (excluding securities transactions), as compared to the same quarter a year ago, were higher levels of service charge income (up $408 thousand, or 3.9 percent), investment and annuity fees (up $709 thousand or 35.2 percent), trust revenue (up $451 thousand, or 11.0 percent), and debit card fees (up $329 thousand or 23.1 percent). These increases were offset by decreases in insurance fees (down $774 thousand or 15.4 percent), other income (down $346 thousand or 8.9 percent), and secondary mortgage market operations (down $363 thousand or 32.5 percent). The increase in non-interest income (excluding securities transactions) for the second quarter compared to the prior quarter was primarily due to increases in trust fees (up $400 thousand or 9.6 percent), and debit card fees (up $344 thousand or 13.6 percent). * Operating expense: Operating expenses for the second quarter were $0.2 million, or 0.4 percent, lower compared to the same quarter a year ago, but were $2.1 million, or 4.1 percent, higher than the previous quarter. The decrease from the same quarter a year ago was reflected in lower other operating expenses (down $2.6 million) which was offset by higher levels of personnel expense (up $2.2 million) and occupancy expense (up $233 thousand), somewhat reflective of the Company's on-going rebuilding efforts in the wake of the storm of 2005, but also due to the recent facilities opened in expansion markets (Mobile, Pensacola, and New Orleans). The increase in operating expense from last quarter was due to personnel expense (up $1.4 million), occupancy expense (up $101 thousand), and other operating expense (up $679 thousand). These increases were offset by a decrease in equipment expense (down $124 thousand). Full-time equivalent headcount at June 30, 2008, was up 26 from March 31, 2008, and was down 41 compared to June 30, 2007.
The Company did not repurchase any shares during the second quarter of 2008 under the Stock Repurchase Plan that was approved in 2007. This plan authorizes the repurchase of 3,000,000 shares. No shares were repurchased in the first six months of 2008, but 661,000 shares were repurchased in the first six months of 2007. Subject to market conditions, repurchases will be conducted solely through a Rule 10b5-1 repurchase plan. Shares purchased under this program will be held in treasury and used for general corporate purposes as determined by Hancock's board of directors. Management intends to continue repurchasing shares as long as market conditions are conducive to that action.
Hancock Holding Company -- parent company of Hancock Bank (Mississippi), Hancock Bank of Louisiana, Hancock Bank of Florida, and Hancock Bank of Alabama -- has assets of approximately $6.27 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.
The Hancock Holding Company logo is available at http://www.primenewswire.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 Six Months Ended --------------------------------------------------- 6/30/2008 3/31/2008 6/30/2007 6/30/2008 6/30/2007 --------------------------------------------------- Per Common Share Data ----------- Earnings per share: Basic $0.67 $0.64 $0.63 $1.31 $1.22 Diluted $0.66 $0.63 $0.62 $1.29 $1.20 Cash dividends per share $0.240 $0.240 $0.240 $0.480 $0.480 Book value per share (period-end) $18.27 $18.41 $17.13 $18.27 $17.13 Tangible book value per share (period -end) $16.06 $16.17 $14.90 $16.06 $14.90 Weighted average number of shares: Basic 31,382 31,346 32,233 31,366 32,447 Diluted 31,814 31,790 32,749 31,779 33,024 Period-end number of shares 31,386 31,372 32,094 31,386 32,094 Market data: High closing price $45.68 $44.29 $44.37 $45.68 $54.09 Low closing price $38.38 $33.45 $37.50 $33.45 $37.50 Period end closing price $39.29 $42.02 $37.55 $39.29 $37.55 Trading volume 14,527 17,204 11,614 31,731 20,195 Other Period-end Data ---------------- FTE headcount 1,903 1,877 1,944 1,903 1,944 Tangible common equity $503,953 $507,287 $478,085 $503,953 $478,085 Tier I capital $527,479 $512,248 $510,096 $527,479 $510,096 Goodwill $62,277 $62,277 $62,277 $62,277 $62,277 Amortizable intangibles $6,762 $7,388 $8,607 $6,762 $8,607 Mortgage servicing intangibles $413 $477 $729 $413 $729 Common shares repurchased for publicly announced plans 0 0 433 0 661 Performance Ratios ----------- Return on average assets 1.36% 1.30% 1.42% 1.33% 1.37% Return on average common equity 14.51% 14.13% 14.53% 14.32% 14.15% Earning asset yield (TE) 6.02% 6.28% 6.76% 6.15% 6.70% Total cost of funds 2.12% 2.47% 2.59% 2.30% 2.59% Net interest margin (TE) 3.90% 3.80% 4.17% 3.85% 4.11% Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions 60.26% 59.49% 61.51% 59.88% 61.46% Common equity (period-end) as a percent of total assets (period- end) 9.15% 8.99% 9.36% 9.15% 9.36% Leverage (Tier I) ratio 8.57% 8.34% 9.01% 8.57% 9.01% Tangible common equity ratio 8.13% 7.98% 8.24% 8.13% 8.24% Net charge-offs as a percent of average loans 0.27% 0.32% 0.18% 0.30% 0.18% Allowance for loan losses as a percent of period -end loans 1.41% 1.46% 1.35% 1.41% 1.35% Allowance for loan losses to NPAs + accruing loans 90 days past due 203.06% 265.81% 410.98% 203.06% 410.98% Loan/deposit ratio 74.82% 72.10% 69.62% 73.45% 67.75% Non-interest income excluding securities transactions as a percent of total revenue (TE) 36.50% 36.73% 36.33% 36.61% 34.69% -------------------------------------------------- Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) ------------------------------------------------------ Three Months Ended Six Months Ended ------------------------------------------------------ 6/30/2008 3/31/2008 6/30/2007 6/30/2008 6/30/2007 ------------------------------------------------------ Asset Quality Information ------------ Non-accrual loans $18,106 $12,983 $7,544 $18,106 $7,544 Foreclosed assets 1,693 3,619 1,146 1,693 1,146 ------------------------------------------------------ Total non- performing assets $19,799 $16,602 $8,690 $19,799 $8,690 ------------------------------------------------------ Non- performing assets as a percent of loans and foreclosed assets 0.52% 0.46% 0.25% 0.52% 0.25% Accruing loans 90 days past due $6,449 $3,340 $2,558 $6,449 $2,558 Accruing loans 90 days past due as a percent of loans 0.17% 0.09% 0.07% 0.17% 0.07% Non- performing assets + accruing loans 90 days past due to loans and foreclosed assets 0.69% 0.55% 0.33% 0.69% 0.33% Net charge- offs $2,495 $2,933 $1,528 $5,428 $2,994 Net charge- offs as a percent of average loans 0.27% 0.32% 0.18% 0.30% 0.18% Allowance for loan losses $53,300 $53,008 $46,227 $53,300 $46,227 Allowance for loan losses as a percent of period- end loans 1.41% 1.46% 1.35% 1.41% 1.35% Allowance for loan losses to NPAs + accruing loans 90 days past due 203.06% 265.81% 410.98% 203.06% 410.98% Provision for loan losses $2,787 $8,818 $1,238 $11,605 $2,449 Allowance for Loan Losses --------- Beginning Balance $53,008 $47,123 $46,517 $47,123 $46,772 Provision for loan loss 2,787 8,818 1,238 11,605 2,449 Charge-offs 3,968 4,197 3,521 8,165 6,597 Recoveries 1,473 1,264 1,993 2,737 3,603 ------------------------------------------------------ Net charge- offs 2,495 2,933 1,528 5,428 2,994 ------------------------------------------------------ Ending Balance $53,300 $53,008 $46,227 $53,300 $46,227 ------------------------------------------------------ Net Charge- off Information ------------ Net charge- offs: Commercial/ real estate loans $600 $834 ($63) $1,434 $105 Mortgage loans 61 -- (22) 61 1 Direct consumer loans 442 588 617 1,031 972 Indirect consumer loans 681 463 471 1,143 902 Finance company loans 711 1,048 525 1,759 1,014 ------------------------------------------------------ Total net charge- offs $2,495 $2,933 $1,528 $ 5,428 $2,994 ====================================================== Average loans: Commercial/ real estate loans 2,272,057 $2,224,695 $2,040,088 $2,248,375 $2,010,572 Mortgage loans 413,076 399,374 382,642 406,225 380,007 Direct consumer loans 526,752 514,441 487,267 520,597 486,239 Indirect consumer loans 386,565 386,985 360,451 386,775 358,739 Finance Company loans 113,555 113,113 101,092 113,334 96,728 ------------------------------------------------------ Total average loans $3,712,005 $3,638,608 $3,371,540 $3,675,306 $3,332,285 Net charge- offs to average loans: Commercial/ real estate loans 0.11% 0.15% -0.01% 0.13% 0.01% Mortgage loans 0.06% 0.00% -0.02% 0.03% 0.00% Direct consumer loans 0.34% 0.46% 0.51% 0.40% 0.40% Indirect consumer loans 0.71% 0.48% 0.52% 0.59% 0.51% Finance Company loans 2.52% 3.73% 2.08% 3.12% 2.11% ------------------------------------------------------ Total net charge- offs to average loans 0.27% 0.32% 0.18% 0.30% 0.18% ------------------------------------------------------ Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) -------------------------------------------------- Three Months Ended Six Months Ended -------------------------------------------------- 6/30/2008 3/31/2008 6/30/2007 6/30/2008 6/30/2007 -------------------------------------------------- Income Statement ---------- Interest income $81,754 $84,813 $84,937 $166,567 $170,646 Interest income (TE) 84,186 87,269 87,204 171,455 175,329 Interest expense 29,573 34,344 33,394 63,917 67,702 -------------------------------------------------- Net interest income (TE) 54,613 52,925 53,810 107,538 107,627 Provision for loan losses 2,787 8,818 1,238 11,605 2,449 Noninterest income excluding securities transactions 31,390 30,728 30,710 62,118 57,167 Securities transactions gains/(losses) 426 5,652 34 6,078 40 Noninterest expense 52,189 50,134 52,374 102,323 102,081 -------------------------------------------------- Income before income taxes 29,021 27,897 28,675 56,918 55,621 Income tax expense 8,037 7,840 8,352 15,877 16,068 -------------------------------------------------- Net income $20,984 $20,057 $20,323 $41,041 $39,553 ================================================== Noninterest Income and Noninterest Expense ------------ Service charges on deposit accounts $10,879 $10,790 $10,471 $21,669 $19,662 Trust fees 4,575 4,175 4,124 8,751 7,816 Debit card & merchant fees 2,884 2,540 2,618 5,423 4,909 Insurance fees 4,259 4,341 5,033 8,600 9,402 Investment & annuity fees 2,727 2,809 2,018 5,536 3,995 ATM fees 1,757 1,691 1,428 3,448 2,808 Secondary mortgage market operations 753 778 1,116 1,531 2,027 Other income 3,556 3,604 3,902 7,160 6,548 -------------------------------------------------- Noninterest income excluding securities transactions $31,390 $30,728 $30,710 $62,118 $57,167 Securities transactions gains/(losses) 426 5,652 34 6,078 40 -------------------------------------------------- Total noninterest income including securities transactions $31,816 $36,380 $30,744 $68,196 $57,207 ================================================== Personnel expense $27,031 $25,631 $24,837 $52,662 $51,401 Occupancy expense (net) 4,702 4,601 4,469 9,303 8,542 Equipment expense 2,785 2,909 2,768 5,694 5,041 Other operating expense 17,307 16,628 19,916 33,935 36,290 Amortization of intangibles 364 365 384 729 807 -------------------------------------------------- Total noninterest expense $52,189 $50,134 $52,374 $102,323 $102,081 ================================================== Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) ------------------------------------------------------ Three Months Ended Six Months Ended ------------------------------------------------------ 6/30/2008 3/31/2008 6/30/2007 6/30/2008 6/30/2007 ------------------------------------------------------ Period-end Balance Sheet ---------- Commercial/ real estate loans $2,348,816 $2,240,823 $2,094,018 $2,348,816 $2,094,018 Mortgage loans 410,469 393,445 370,494 410,469 370,494 Direct consumer loans 520,230 506,372 481,565 520,230 481,565 Indirect consumer loans 393,625 386,614 364,375 393,625 364,375 Finance Company loans 114,664 111,806 105,700 114,664 105,700 ------------------------------------------------------ Total loans 3,787,804 3,639,060 3,416,152 3,787,804 3,416,152 Loans held for sale 28,808 22,752 25,198 28,808 25,198 Securities 1,807,595 1,765,416 1,617,204 1,807,595 1,617,204 Short-term investments 9,848 366,809 196,944 9,848 196,944 ------------------------------------------------------ Earning assets 5,634,055 5,794,037 5,255,498 5,634,055 5,255,498 ------------------------------------------------------ Allowance for loan losses (53,300) (53,008) (46,227) (53,300) (46,227) Other assets 689,361 684,084 665,535 689,361 665,535 ------------------------------------------------------ Total assets $6,270,116 $6,425,113 $5,874,806 $6,270,116 $5,874,806 ====================================================== Noninterest bearing deposits $894,544 $881,380 $938,702 $894,544 $938,702 Interest bearing transaction deposits 1,460,848 1,431,726 1,412,123 1,460,848 1,412,123 Interest bearing Public Fund deposits 1,003,415 1,038,119 891,803 1,003,415 891,803 Time deposits 1,662,001 1,792,360 1,735,105 1,662,001 1,735,105 ------------------------------------------------------ Total interest bearing deposits 4,126,264 4,262,205 4,039,031 4,126,264 4,039,031 ------------------------------------------------------ Total deposits 5,020,808 5,143,585 4,977,733 5,020,808 4,977,733 Other borrowed funds 574,981 604,013 208,938 574,981 208,938 Other liabilities 100,922 100,087 138,437 100,922 138,437 Common share- holders' equity 573,405 577,428 549,698 573,405 549,698 ------------------------------------------------------ Total liabilities & common equity $6,270,116 $6,425,113 $5,874,806 $6,270,116 $5,874,806 ====================================================== Average Balance Sheet -------- Commercial/ real estate loans $2,272,057 $2,224,695 $2,040,088 $2,248,375 $2,010,572 Mortgage loans 413,076 399,374 382,642 406,225 380,007 Direct consumer loans 526,752 514,441 487,267 520,597 486,239 Indirect consumer loans 386,565 386,985 360,451 386,775 358,739 Finance Company loans 113,555 113,113 101,092 113,334 96,728 ------------------------------------------------------ Total loans 3,712,005 3,638,608 3,371,540 3,675,306 3,332,285 Securities 1,839,225 1,743,207 1,733,869 1,791,216 1,781,946 Short-term investments 57,518 199,484 67,520 128,502 149,086 ------------------------------------------------------ Earning average assets 5,608,748 5,581,299 5,172,929 5,595,024 5,263,317 ------------------------------------------------------ Allowance for loan losses (53,012) (47,385) (46,511) (50,198) (46,607) Other assets 667,497 678,215 607,941 672,855 602,972 ------------------------------------------------------ Total assets $6,223,233 $6,212,129 $5,734,359 $6,217,681 $5,819,682 ====================================================== Noninterest bearing deposits $880,375 $858,706 $950,637 $869,541 $967,218 Interest bearing transaction deposits 1,447,301 1,376,712 1,461,092 1,412,006 1,476,661 Interest bearing Public Fund deposits 946,411 962,170 775,431 954,290 797,916 Time deposits 1,687,218 1,848,825 1,655,322 1,768,022 1,676,651 ------------------------------------------------------ Total interest bearing deposits 4,080,930 4,187,707 3,891,845 4,134,318 3,951,228 ------------------------------------------------------ Total deposits 4,961,305 5,046,413 4,842,482 5,003,859 4,918,446 Other borrowed funds 567,151 484,542 197,261 525,847 201,476 Other liabilities 113,096 110,468 133,783 111,781 136,261 Common share- holders' equity 581,681 570,706 560,833 576,194 563,499 ------------------------------------------------------ Total liabilities & common equity $6,223,233 $6,212,129 $5,734,359 $6,217,681 $5,819,682 ====================================================== Hancock Holding Company Financial Highlights (amounts in thousands) (unaudited) ------------------------------------------------------- Three Months Ended Six Months Ended ------------------------------------------------------- 6/30/2008 3/31/2008 6/30/2007 6/30/2008 6/30/2007 ------------------------------------------------------- Average Balance Sheet Mix ---------- Percentage of earning assets/ funding sources: Loans 66.18% 65.20% 65.17% 65.69% 63.31% Securities 32.79% 31.23% 33.52% 32.01% 33.86% Short-term investments 1.03% 3.57% 1.31% 2.30% 2.83% ------------------------------------------------------- Earning average assets 100.00% 100.00% 100.00% 100.00% 100.00% ======================================================= Noninterest bearing deposits 15.70% 15.39% 18.38% 15.54% 18.37% Interest bearing transaction deposits 25.80% 24.67% 28.24% 25.23% 28.06% Interest bearing Public Fund deposits 16.87% 17.24% 14.99% 17.06% 15.16% Time deposits 30.09% 33.12% 32.01% 31.60% 31.86% ------------------------------------------------------- Total deposits 88.46% 90.42% 93.62% 89.43% 93.45% Other borrowed funds 10.11% 8.68% 3.81% 9.40% 3.83% Other net interest- free funding sources 1.43% 0.90% 2.57% 1.17% 2.72% ------------------------------------------------------- Total average funding sources 100.00% 100.00% 100.00% 100.00% 100.00% ======================================================= Loan mix: Commercial/ real estate loans 61.21% 61.13% 60.51% 61.19% 60.34% Mortgage loans 11.13% 10.98% 11.35% 11.05% 11.40% Direct consumer loans 14.19% 14.14% 14.45% 14.16% 14.59% Indirect consumer loans 10.41% 10.64% 10.69% 10.52% 10.77% Finance Company loans 3.06% 3.11% 3.00% 3.08% 2.90% ------------------------------------------------------- Total loans 100.00% 100.00% 100.00% 100.00% 100.00% ======================================================= Average dollars (in thousands): Loans $3,712,005 $3,638,608 $3,371,540 $3,675,306 $3,332,285 Securities 1,839,225 1,743,207 1,733,869 1,791,216 1,781,946 Short-term investments 57,518 199,484 67,520 128,502 149,086 ------------------------------------------------------- Earning average assets $5,608,748 $5,581,299 $5,172,929 $5,595,024 $5,263,317 Noninterest bearing deposits $880,375 $858,706 $950,637 $869,541 $967,218 Interest bearing transaction deposits 1,447,301 1,376,712 1,461,092 1,412,006 1,476,661 Interest bearing Public Fund deposits 946,411 962,170 775,431 954,290 797,916 Time deposits 1,687,218 1,848,825 1,655,322 1,768,022 1,676,651 ------------------------------------------------------- Total deposits 4,961,305 5,046,413 4,842,482 5,003,859 4,918,446 Other borrowed funds 567,151 484,542 197,261 525,847 201,476 Other net interest- free funding sources 80,292 50,344 133,186 65,318 143,395 ------------------------------------------------------- Total average funding sources $5,608,748 $5,581,299 $5,172,929 $5,595,024 $5,263,317 Loans: Commercial/ real estate loans $2,272,057 $2,224,695 $2,040,088 $2,248,375 $2,010,572 Mortgage loans 413,076 399,374 382,642 406,225 380,007 Direct consumer loans 526,752 514,441 487,267 520,597 486,239 Indirect consumer loans 386,565 386,985 360,451 386,775 358,739 Finance Company loans 113,555 113,113 101,092 113,334 96,728 ------------------------------------------------------- Total average loans $3,712,005 $3,638,608 $3,371,540 $3,675,306 $3,332,285 ------------------------------------------------------- Hancock Holding Company Average Balance and Net Interest Margin Summary (amounts in thousands) (unaudited) ------------------------------------------------------ Three Months Ended -------------------------- -------------------------- 06/30/08 03/31/08 -------------------------- -------------------------- Interest Volume Rate Interest Volume Rate -------- ---------- ---- -------- ---------- ---- Average Earning Assets Commercial & real estate loans (TE) $34,223 $2,272,057 6.05% $36,582 $2,224,695 6.61% Mortgage loans 6,124 413,076 5.93% 5,961 399,374 5.97% Consumer loans 20,960 1,026,872 8.21% 21,540 1,014,539 8.54% Loan fees & late charges (48) -- 0.00% 116 -- 0.00% -------- ---------- ---- ------- ---------- ---- Total loans (TE) $61,259 $3,712,005 6.63% 64,199 $3,638,608 7.09% US treasury securities 73 11,364 2.59% 117 11,384 4.12% US agency securities 3,728 335,607 4.44% 5,638 477,630 4.72% CMOs 1,843 149,640 4.93% 1,728 143,691 4.81% Mortgage backed securities 14,060 1,101,270 5.11% 11,025 856,452 5.15% Municipals (TE) 2,361 182,571 5.17% 2,501 193,787 5.16% Other securities 557 58,773 3.79% 600 60,263 3.98% -------- ---------- ---- ------- ---------- ---- Total securities (TE) 22,622 1,839,225 4.92% 21,609 1,743,207 4.96% Total short-term investments 305 57,518 2.13% 1,462 199,484 2.95% Average earning assets yield (TE) $84,186 $5,608,748 6.02% $87,270 $5,581,299 6.28% Interest-bearing Liabilities Interest-bearing transaction deposits $3,273 $1,447,301 0.91% $3,952 $1,376,712 1.15% Time deposits 16,089 1,687,218 3.84% 20,455 1,848,825 4.45% Public Funds 6,170 946,411 2.62% 6,192 962,170 2.59% -------- ---------- ---- ------- ---------- ---- Total interest bearing deposits $25,532 4,080,930 2.52% $ 30,599 4,187,707 2.94% Total borrowings 4,061 567,151 2.88% 3,791 484,542 3.15% Capitalized Interest (20) (46) Total interest bearing liab cost $29,573 $4,648,081 2.56% $34,344 $4,672,249 2.96% Noninterest- bearing deposits 880,375 858,706 Other net interest-free funding sources 80,292 50,344 Total Cost of Funds $29,573 $5,608,748 2.12% $34,344 $5,581,299 2.47% Net Interest Spread (TE) $54,613 3.46% $52,926 3.32% Net Interest Margin (TE) $54,613 $5,608,748 3.90% $52,926 $5,581,299 3.80% --------------------------------------------------------------------- ---------------------------- Three Months Ended ---------------------------- 06/30/07 ---------------------------- Interest Volume Rate -------- ---------- ---- Average Earning Assets Commercial & real estate loans (TE) $ 37,762 $2,040,088 7.42% Mortgage loans 5,604 382,642 5.86% Consumer loans 20,978 948,810 8.87% Loan fees & late charges 291 -- 0.00% -------- ---------- ---- Total loans (TE) $ 64,635 3,371,540 7.69% US treasury securities 414 34,141 4.87% US agency securities 10,987 866,747 5.07% CMOs 948 93,145 4.07% Mortgage backed securities 5,847 469,500 4.98% Municipals (TE) 2,653 196,861 5.39% Other securities 932 73,475 5.07% -------- ---------- ---- Total securities (TE) 21,781 1,733,869 5.03% Total short-term investments 788 67,520 4.68% Average earning assets yield (TE) $ 87,204 $5,172,929 6.76% Interest-bearing Liabilities Interest-bearing transaction deposits $ 4,913 $1,461,092 1.35% Time deposits 18,555 1,655,322 4.50% Public Funds 8,439 775,431 4.37% -------- ---------- ---- Total interest bearing deposits $ 31,907 3,891,845 3.29% Total borrowings 1,814 197,261 3.65% Capitalized Interest (327) Total interest bearing liab cost $ 33,394 $4,089,106 3.28% Noninterest- bearing deposits 950,637 Other net interest-free funding sources 133,186 Total Cost of Funds $ 33,394 $5,172,929 2.59% Net Interest Spread (TE) $ 53,810 3.48% Net Interest Margin (TE) $ 53,810 $5,172,929 4.17% ------------------------------------------------------------- Hancock Holding Company Average Balance and Net Interest Margin Summary (amounts in thousands) (unaudited) ------------------------------------------------------- Six Months Ended -------------------------- --------------------------- 6/30/2008 6/30/2007 -------- ---------- ---- --------- ---------- ---- Interest Volume Rate Interest Volume Rate -------- ---------- ---- --------- ---------- ---- Average Earning Assets Commercial & real estate loans (TE) $70,805 $2,248,375 6.33% $74,013 $2,010,572 7.42% Mortgage loans 12,085 406,225 5.95% 11,093 380,007 5.84% Consumer loans 42,500 1,020,706 8.37% 41,175 941,706 8.82% Loan fees & late charges 68 -- 0.00% 734 -- 0.00% -------- ---------- ---- --------- ---------- ---- Total loans (TE) 125,458 $3,675,306 6.86% 127,015 $3,332,285 7.68% US treasury securities 190 11,374 3.36% 1,151 47,238 4.91% US agency securities 9,367 406,619 4.61% 22,743 903,428 5.03% CMOs 3,571 146,665 4.87% 2,052 100,525 4.08% Mortgage backed securities 25,085 978,861 5.13% 11,330 457,032 4.96% Municipals (TE) 4,861 188,179 5.17% 5,514 197,832 5.57% Other securities 1,157 59,518 3.89% 1,854 75,891 4.89% -------- ---------- ---- --------- ---------- ---- Total securities (TE) 44,231 1,791,216 4.94% 44,644 1,781,946 5.01% Total short-term invest- ments 1,766 128,502 2.76% 3,671 149,086 4.97% Average earning assets yield (TE) $171,455 $5,595,024 6.15% $175,330 $5,263,317 6.70% Interest- Bearing Liabilities Interest- bearing transaction deposits $7,225 $1,412,006 1.03% $9,678 $1,476,661 1.32% Time deposits 36,544 1,768,022 4.16% 37,577 1,676,651 4.52% Public Funds 12,362 954,290 2.61% 17,468 797,916 4.41% -------- ---------- ---- --------- ---------- ---- Total interest bearing deposits $56,131 $4,134,318 2.73% $64,723 $3,951,228 3.30% Total borrowings 7,852 525,847 3.00% 3,697 201,476 3.70% Capitalized Interest (66) (717) Total interest bearing liab cost $63,917 $4,660,165 2.76% $67,703 $4,152,704 3.29% Noninterest- bearing deposits 869,541 967,218 Other net interest- free funding sources 65,318 143,395 Total Cost of Funds $63,917 $5,595,024 2.30% $67,703 $5,263,317 2.59% Net Interest Spread (TE) $107,538 3.39% $107,627 3.41% Net Interest Margin (TE) $107,538 $5,595,024 3.85% $107,627 $5,263,317 4.11% -------- ---------- ---- --------- ---------- ---- Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) (unaudited) ------------------------------------------------------ 2006 2007 ------------------------------------------------------ 3Q 4Q 1Q 2Q 3Q 4Q ------------------------------------------------------ Per Common Share Data ----------- Earnings per share: Basic $1.11 $0.67 $0.59 $0.63 $0.55 $0.53 Diluted $1.08 $0.65 $0.58 $0.62 $0.55 $0.53 Cash dividends per share $0.240 $0.240 $0.240 $0.240 $0.240 $0.240 Book value per share (period-end) $16.64 $17.09 $17.27 $17.13 $17.55 $17.71 Tangible book value per share (period-end) $14.47 $14.87 $15.05 $14.90 $15.32 $15.45 Weighted average number of shares: Basic 32,566 32,632 32,665 32,233 32,005 31,097 Diluted 33,333 33,378 33,299 32,749 32,492 31,577 Period-end number of shares 32,584 32,666 32,518 32,094 31,786 31,295 Market data: High closing price $56.79 $56.00 $54.09 $44.37 $43.90 $43.47 Low closing price $49.71 $50.85 $41.88 $37.50 $32.78 $33.35 Period end closing price $53.55 $52.84 $43.98 $37.55 $40.08 $38.20 Trading volume 8,135 6,393 8,577 11,614 10,290 17,662 Other Period-end Data ----------- FTE headcount 1,788 1,848 1,929 1,944 1,966 1,888 Tangible common equity $471,387 $485,778 $489,430 $478,085 $486,871 $483,612 Tier I capital $487,668 $510,638 $513,229 $510,096 $508,554 $497,307 Goodwill $59,708 $62,277 $62,277 $62,277 $62,277 $62,277 Amortizable intangibles $9,913 $9,414 $8,991 $8,607 $8,195 $7,753 Mortgage servicing intangibles $1,093 $941 $829 $729 $632 $545 Common shares repurchased for publicly announced plans -- -- 228 433 343 552 Performance Ratios ----------- Return on average assets 2.36% 1.44% 1.32% 1.42% 1.21% 1.11% Return on average common equity 27.58% 15.54% 13.77% 14.53% 12.58% 11.69% Earning asset yield (TE) 6.60% 6.54% 6.64% 6.76% 6.81% 6.72% Total cost of funds 2.30% 2.48% 2.60% 2.59% 2.75% 2.68% Net interest margin (TE) 4.29% 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 58.76% 59.79% 61.40% 61.51% 65.18% 67.98% Common equity (period-end) as a percent of total assets (period-end) 8.86% 9.36% 9.61% 9.36% 9.45% 9.15% Leverage (Tier I) ratio 8.15% 8.63% 8.80% 9.01% 8.82% 8.49% Tangible common equity ratio 7.79% 8.24% 8.48% 8.24% 8.34% 8.08% Net charge- offs as a percent of average loans 0.34% 0.19% 0.18% 0.18% 0.21% 0.26% Allowance for loan losses as a percent of period- end loans 1.55% 1.43% 1.41% 1.35% 1.31% 1.31% Allowance for loan losses to NPAs + loans 90 days past due 494.65% 694.67% 413.60% 410.98% 335.22% 241.43% Loan/deposit ratio 60.97% 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) 30.18% 33.14% 32.96% 36.33% 36.27% 36.67% ------------------------------------------------------ ------------------------ 2008 ------------------------ 1Q 2Q ------------------------ Per Common Share Data --------------------- Earnings per share: Basic $0.64 $0.67 Diluted $0.63 $0.66 Cash dividends per share $0.240 $0.240 Book value per share (period-end) $18.41 $18.27 Tangible book value per share (period-end) $16.17 $16.06 Weighted average number of shares: Basic 31,346 31,382 Diluted 31,790 31,814 Period-end number of shares 31,372 31,386 Market data: High closing price $44.29 $45.68 Low closing price $33.45 $38.38 Period end closing price $42.02 $39.29 Trading volume 17,204 14,527 Other Period-end Data --------------------- FTE headcount 1,877 1,903 Tangible common equity $507,287 $503,953 Tier I capital $512,248 $527,479 Goodwill $62,277 $62,277 Amortizable intangibles $7,388 $6,762 Mortgage servicing intangibles $477 $413 Common shares repurchased for publicly announced plans 0 0 Performance Ratios ------------------ Return on average assets 1.30% 1.36% Return on average common equity 14.13% 14.51% Earning asset yield (TE) 6.28% 6.02% Total cost of funds 2.47% 2.12% Net interest margin (TE) 3.80% 3.90% 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% Common equity (period-end) as a percent of total assets (period-end) 8.99% 9.15% Leverage (Tier I) ratio 8.34% 8.57% Tangible common equity ratio 7.98% 8.13% Net charge-offs as a percent of average loans 0.32% 0.27% Allowance for loan losses as a percent of period-end loans 1.46% 1.41% Allowance for loan losses to NPAs + loans 90 days past due 265.81% 203.06% Loan/deposit ratio 72.10% 74.82% 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% 36.50% ------------------------- Hancock Holding Company Quarterly Financial Data (amounts in thousands,except per share data and FTE headcount) ---------------------------- (unaudited) 2006 ---------------------------- 3Q 4Q ---------------------------- Asset Quality Information ------------------------- Non-accrual loans $5,179 $3,500 Foreclosed assets 970 681 ---------------------------- Total non-performing assets $6,149 $4,181 Non-performing assets as a percent of loans and foreclosed assets 0.20% 0.13% Accruing loans 90 days past due $3,626 $2,552 Accruing loans 90 days past due as a percent of loans 0.12% 0.08% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 0.31% 0.21% Net charge-offs $2,608 $1,523 Net charge-offs as a percent of average loans 0.34% 0.19% Allowance for loan losses $48,352 $46,772 Allowance for loan losses as a percent of period-end loans 1.55% 1.43% Allowance for loan losses to NPAs + accruing loans 90 days past due 494.65% 694.67% Provision for (recovery of) loan losses ($20,000) ($57) Net Charge-off Information -------------------------- Net charge-offs: Commercial/real estate loans $522 ($137) Mortgage loans 367 (11) Direct consumer loans 1,003 493 Indirect consumer loans 294 395 Finance company loans 422 783 ---------------------------- Total net charge-offs $2,608 $1,523 ---------------------------- Average loans: Commercial/real estate loans $1,759,173 $1,855,506 Mortgage loans 423,610 428,674 Direct consumer loans 470,771 479,087 Indirect consumer loans 347,404 350,829 Finance Company loans 79,483 86,965 ---------------------------- Total average loans $3,080,441 $3,201,061 Net charge-offs to average loans: Commercial/real estate loans 0.12% -0.03% Mortgage loans 0.34% -0.01% Direct consumer loans 0.85% 0.41% Indirect consumer loans 0.34% 0.45% Finance Company loans 2.11% 3.57% ---------------------------- Total net charge-offs to average loans 0.34% 0.19% ---------------------------- ---------------------------------------------- 2007 ---------------------------------------------- 1Q 2Q 3Q 4Q ---------------------------------------------- Asset Quality Information ------------- Non-accrual loans $4,494 $7,544 $8,500 $13,067 Foreclosed assets 718 1,146 1,374 2,297 ---------------------------------------------- Total non- performing assets $5,212 $8,690 $9,874 $15,364 Non-performing assets as a percent of loans and foreclosed assets 0.16% 0.25% 0.28% 0.43% Accruing loans 90 days past due $6,035 $2,558 $3,819 $4,154 Accruing loans 90 days past due as a percent of loans 0.18% 0.07% 0.11% 0.12% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 0.34% 0.33% 0.39% 0.54% Net charge-offs $1,466 $1,528 $1,880 $2,370 Net charge-offs as a percent of average loans 0.18% 0.18% 0.21% 0.26% Allowance for loan losses $46,517 $46,227 $45,901 $47,123 Allowance for loan losses as a percent of period -end loans 1.41% 1.35% 1.31% 1.31% Allowance for loan losses to NPAs + accruing loans 90 days past due 413.60% 410.98% 335.22% 241.43% Provision for (recovery of) loan losses $1,211 $1,238 $1,554 $3,592 Net Charge-off Information -------------- Net charge-offs: Commercial/real estate loans $168 ($63) ($58) ($100) Mortgage loans 23 (22) -- 42 Direct consumer loans 110 617 $864 $886 Indirect consumer loans 675 471 $314 $518 Finance company loans 489 525 $760 $1,024 ---------------------------------------------- Total net charge- offs $1,465 $1,528 $1,880 $2,370 ---------------------------------------------- Average loans: Commercial/real estate loans $1,931,966 $2,040,088 $2,055,922 $2,128,279 Mortgage loans 426,103 382,642 439,459 440,842 Direct consumer loans 485,201 487,267 491,417 505,098 Indirect consumer loans 357,008 360,451 373,677 385,093 Finance Company loans 92,315 101,092 109,807 114,750 ---------------------------------------------- Total average loans $3,292,593 $3,371,540 $3,470,282 $3,574,062 Net charge-offs to average loans: Commercial/real estate loans 0.04% -0.01% -0.01% -0.02% Mortgage loans 0.02% -0.02% 0.00% 0.04% Direct consumer loans 0.09% 0.51% 0.70% 0.70% Indirect consumer loans 0.77% 0.52% 0.33% 0.53% Finance Company loans 2.15% 2.08% 2.74% 3.54% ---------------------------------------------- Total net charge- offs to average loans 0.18% 0.18% 0.21% 0.26% ---------------------------------------------- 2008 ---------------------------- 1Q 2Q ---------------------------- Asset Quality Information ------------------------- Non-accrual loans $12,983 $18,106 Foreclosed assets 3,619 1,693 ---------------------------- Total non-performing assets $16,602 $19,799 Non-performing assets as a percent of loans and foreclosed assets 0.46% 0.52% Accruing loans 90 days past due $3,340 $6,449 Accruing loans 90 days past due as a percent of loans 0.09% 0.17% Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets 0.55% 0.69% Net charge-offs $2,933 $2,495 Net charge-offs as a percent of average loans 0.32% 0.27% Allowance for loan losses $53,008 $53,300 Allowance for loan losses as a percent of period-end loans 1.46% 1.41% Allowance for loan losses to NPAs + accruing loans 90 days past due 265.81% 203.06% Provision for (recovery of) loan losses $8,818 $2,787 Net Charge-off Information -------------------------- Net charge-offs: Commercial/real estate loans $834 $600 Mortgage loans -- 61 Direct consumer loans 588 442 Indirect consumer loans 463 681 Finance company loans 1,048 711 ---------------------------- Total net charge-offs $2,933 $2,495 ---------------------------- Average loans: Commercial/real estate loans $2,224,695 $2,272,057 Mortgage loans 399,374 413,076 Direct consumer loans 514,441 526,752 Indirect consumer loans 386,985 386,565 Finance Company loans 113,113 113,555 ---------------------------- Total average loans $3,638,608 $3,712,005 Net charge-offs to average loans: Commercial/real estate loans 0.15% 0.11% Mortgage loans 0.00% 0.06% Direct consumer loans 0.46% 0.34% Indirect consumer loans 0.48% 0.71% Finance Company loans 3.73% 2.52% ---------------------------- Total net charge-offs to average loans 0.32% 0.27% ---------------------------- Hancock Holding Company Quarterly Financial Data (amounts in thousands, except per share data and FTE headcount) ---------------------------------------------------- (unaudited) 2006 2007 ---------------------------------------------------- 3Q 4Q 1Q 2Q 3Q 4Q ---------------------------------------------------- Income Statement ---------- Interest income $89,233 $87,104 $85,708 $84,937 $87,661 $87,559 Interest income (TE) 91,275 89,366 88,124 87,204 90,033 90,041 Interest expense 31,988 33,966 34,308 33,394 36,467 36,067 ---------------------------------------------------- Net interest income (TE) 59,287 55,400 53,816 53,810 53,566 53,974 Provision for (recovery of) loan losses (20,000) (57) 1,211 1,238 1,554 3,592 Noninterest income excluding net storm- related gain/(loss) and securities transactions 25,627 27,459 26,457 30,710 30,485 31,897 Net storm- related gain/ (loss) -- 5,084 -- -- -- -- Securities transactions gains/ (losses) 110 (5,396) 6 34 34 234 Noninterest expense 50,337 50,042 49,708 52,374 55,196 58,804 ---------------------------------------------------- Income before income taxes 52,645 30,300 26,944 28,675 24,963 21,227 Income tax expense 16,614 8,538 7,715 8,352 7,224 4,627 ---------------------------------------------------- Net income 36,031 21,762 19,229 20,323 17,739 16,600 ==================================================== Noninterest Income and Noninterest Expense ------------ Service charges on deposit accounts $9,719 $9,402 $9,190 $10,471 $11,085 $11,182 Trust fees 3,174 3,624 3,693 4,124 3,892 4,194 Debit card & merchant fees 1,744 1,983 2,291 2,618 2,025 2,645 Insurance fees 4,145 5,346 4,369 5,033 4,256 5,561 Investment & annuity fees 1,595 1,519 1,978 2,018 2,253 2,498 ATM fees 1,223 1,215 1,380 1,428 1,434 1,626 Secondary mortgage market operations 1,018 945 911 1,116 935 761 Other income 3,009 3,425 2,645 3,902 4,605 3,430 ---------------------------------------------------- Noninterest income excluding net storm- related gain/(loss) and securities transactions $25,627 $27,459 $26,457 $30,710 $30,485 $31,897 Net storm- related gain/ (loss) 0 5,084 -- -- -- -- Securities transactions gains/ (losses) 110 (5,396) 6 34 34 234 ---------------------------------------------------- Total noninterest income including storm- related gain/(loss) and securities transactions $25,737 $27,147 $26,463 $30,744 $30,519 $32,131 ==================================================== Personnel expense $27,059 $24,092 $26,563 $24,837 $28,531 $27,027 Occupancy expense (net) 2,882 3,335 4,073 4,469 4,731 6,162 Equipment expense 2,647 2,665 2,272 2,768 2,814 2,610 Other operating expense 17,304 19,451 16,377 19,916 18,708 22,573 Amortization of intangibles 445 499 423 384 412 432 ---------------------------------------------------- Total noninterest expense $50,337 $50,042 $49,708 $52,374 $55,196 $58,804 ---------------------------------------------------- ----------------- 2008 ----------------- 1Q 2Q ----------------- Income Statement ---------------- Interest income $84,813 $81,754 Interest income (TE) 87,269 84,186 Interest expense 34,344 29,573 ----------------- Net interest income (TE) 52,925 54,613 Provision for (recovery of) loan losses 8,818 2,787 Noninterest income excluding net storm-related gain/(loss) and securities transactions 30,728 31,390 Net storm-related gain/(loss) -- -- Securities transactions gains/(losses) 5,652 426 Noninterest expense 50,134 52,189 ----------------- Income before income taxes 27,897 29,021 Income tax expense 7,840 8,037 ----------------- Net income 20,057 20,984 ================= Noninterest Income and Noninterest Expense ------------------------------------------ Service charges on deposit accounts $10,790 $10,879 Trust fees 4,175 4,575 Debit card & merchant fees 2,540 2,884 Insurance fees 4,341 4,259 Investment & annuity fees 2,809 2,727 ATM fees 1,691 1,757 Secondary mortgage market operations 778 753 Other income 3,604 3,556 ----------------- Noninterest income excluding net storm-related gain/(loss) and securities transactions $30,728 $31,390 Net storm-related gain/(loss) -- -- Securities transactions gains/(losses) 5,652 426 ----------------- Total noninterest income including storm- related gain/(loss) and securities transactions $36,380 $31,816 ================= Personnel expense $25,631 $27,031 Occupancy expense (net) 4,601 4,702 Equipment expense 2,909 2,785 Other operating expense 16,628 17,307 Amortization of intangibles 365 364 ----------------- Total noninterest expense $50,134 $52,189 -----------------