GULFPORT, Miss., Dec. 18, 2009 (GLOBE NEWSWIRE) -- Hancock Holding Company (Nasdaq:HBHC) -- parent company of 110-year old Hancock Bank -- today announced the company has acquired the banking operations of Peoples First Community Bank (Peoples First) through a loss-sharing agreement with the Federal Deposit Insurance Corporation (FDIC).
Depositors of Peoples First will automatically become depositors of Hancock Bank, and deposits will continue to be insured by the FDIC. Depositors may access their accounts through automated teller machine transactions, checks, and debit card transactions. All offices of People First will open under regular business hours on Saturday, December 19, 2009, and Monday, December 21, 2009, as branches of Hancock Bank. Additionally, checks drawn on Peoples First will continue to be processed, and loan customers should continue to make their payments as usual.
Highlights of the combination of Peoples First with Hancock Bank include
* Hancock Bank will acquire approximately $1.8 billion in assets and assume approximately $1.7 billion in liabilities * Other Real Estate Owned will be retained by the FDIC * Discount bid of approximately $236 million and a one percent deposit premium * Immediately accretive to EPS and tangible book value per share * Substantial cash payment from FDIC and expected one-time gain * Loss-sharing agreement where the FDIC covers all acquired loans with reimbursement of 80 percent of losses up to $385 million and 95 percent of losses beyond $385 million * Enables Hancock to enter four strategically important Florida markets (Ft. Walton-Destin, Panama City, Jacksonville, and Orlando) and to expand presence in two existing markets (Pensacola and Tallahassee) * Pro forma capital remains very strong and provides cushion for additional acquisitions
Commenting on the acquisition, Hancock Holding Company President and Chief Executive Officer Carl J. Chaney said, "We are very pleased to welcome Peoples First customers and associates to the Hancock family. Peoples First depositors can rest assured their deposits remain safe, secure, and accessible. The FDIC continues to insure their deposits to the fullest extent permitted, reinforced by the proactive risk management of one of the country's strongest, safest financial institutions, Hancock Bank."
BauerFinancial, Inc., a leading independent bank analysis and research firm, recently rated Hancock Bank among America's most financially sound banks for the 20th consecutive year.
Chaney also emphasized Hancock's business-as-usual plan to ensure no service interruptions for Peoples First customers.
"The loss-sharing arrangement with the FDIC lessens the significant credit risk that usually accompanies a more traditional merger or acquisition. This transaction is a strategic growth opportunity for Hancock Bank with a Florida banking team that shares the same type of community commitment and core values that have distinguished Hancock since 1899. This partnership further expands Hancock's current Florida footprint into attractive, long-term growth markets in the Florida Panhandle, and Central Florida," said Chaney.
Peoples First has 29 branches across the Florida Panhandle and Central Florida, including metropolitan centers such as Pensacola, Panama City, Jacksonville, and Orlando. With this transaction, Hancock will increase the company's total banking and financial services offices to more than 180 locations in Florida, Alabama, Mississippi, and Louisiana.
Keefe Bruyette & Woods, Inc., advised Hancock Holding Company on the transaction. Additional information about this transaction is available in a supplemental PDF presentation to be posted to the Investor Relations portion of Hancock's web site (www.hancockbank.com) on Friday, December 18, 2009, at approximately 5:30 p.m. (CST).
The PDF presentation is also available at the following link: http://media.globenewswire.com/cache/7071/file/7682.pdf
About Hancock Holding Company
Hancock Holding Company -- parent company of Hancock Bank (Mississippi and Florida), Hancock Bank of Louisiana, and Hancock Bank of Alabama -- had assets of approximately $6.8 billion as of September 30, 2009. Founded in 1899, Hancock Bank has ranked as one of the nation's Top 10 Best Banks for two years in a row, according to Bank Director Magazine, and is listed by Forbes.com among the Top 100 Most Trustworthy Companies.
More corporate information and e-banking are available at www.hancockbank.com.
The Hancock Holding Company logo is available at http://www.globenewswire.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.