Hancock Reports Third Quarter 2013 Financial Resul

Message Board

Previous

| Next

Post# of 301275

Posted On: 10/24/2013 5:15:20 PM

Posted By: News Desk 2018

Hancock Reports Third Quarter 2013 Financial Results

GULFPORT, Miss., Oct. 24, 2013 (GLOBE NEWSWIRE) -- Hancock Holding Company (Nasdaq: HBHC ) today announced its financial results for the third quarter of 2013. Operating income for the third quarter of 2013 was $46.8 million or $.56 per diluted common share, compared to $46.9 million, or $.55 in the second quarter of 2013. Operating income was $49.8 million, or $.58, in the third quarter of 2012. Operating income is defined as net income excluding tax-effected securities transactions gains or losses and one-time noninterest expense items. Included in the financial tables is a reconciliation of net income to operating income. Management believes that operating income provides a useful measure of financial performance that helps investors compare the Company's fundamental operations over time.

Hancock's return on average assets (ROA) (operating) was 0.99% for the third quarter of 2013, unchanged from the second quarter of 2013. ROA (operating) was 1.07% in the third quarter a year ago.

Highlights of the Company's third quarter of 2013 results:

Net income included one-time noninterest expense items of $20.9 million, or $13.6 million after tax, or $.17 per diluted common share
Core net interest income (TE) and net interest margin (NIM) remained relatively stable (the Company defines its core results as reported results less the impact of net purchase accounting adjustments.)
An increase of $4.6 million, or a tax-effected $.04 per diluted share, in purchased loan accretion related to excess cash recoveries
Approximately $92 million linked-quarter net loan growth, or 3% annualized, and $464 million, or 4%, year-over-year loan growth (each excluding the FDIC-covered portfolio)
Continued improvement in overall asset quality metrics
Decline in operating expense linked-quarter; on track to meet 1Q14 expense target
Closed 26 banking locations across the five-state footprint on August 30, 2013

"Our third quarter results reflect progress in implementing our current strategic initiatives," said Hancock's President and Chief Executive Officer Carl J. Chaney. "Stabilization of the core margin and net interest income, better loan pricing, improved asset quality, reduced operating expenses and ongoing focus on efficiency, are all keys to achieving our goals for 2014 and beyond. Our associates are working diligently to implement the expense and efficiency initiative, and we are confident we will meet the targets set earlier this year."

Net income in the third quarter of 2013 was $33.2 million, or $.40 per diluted common share, compared to $46.9 million, or $.55, in the second quarter of 2013. Net income was $47.0 million, or $.55 per diluted common share, in the third quarter of 2012. Net income included certain one-time noninterest expenses of $20.9 million in the third quarter of 2013 and $5.3 million in the third quarter of 2012. Return on average assets (ROA) was 0.70% for the third quarter of 2013, compared to 0.99% in the second quarter of 2013 and 1.00% in the third quarter a year ago.

Loans

Total loans at September 30, 2013 were $11.7 billion, up $53 million from June 30, 2013. Excluding the FDIC-covered portfolio, which declined $39 million during the third quarter of 2013, total loans increased $92 million, or 1% linked-quarter.

Solid origination activity with commercial customers across the Company's footprint, especially in south Louisiana, was offset by higher than normal paydowns and payoffs, as well as some seasonal net reductions. As a result, commercial and industrial (C&I) loans were down slightly for the quarter.

The largest component of linked-quarter net growth was in the residential mortgage portfolio, reflecting mainly a strategic decision to retain more of these loans on the balance sheet.

The net growth in the commercial real estate (CRE) portfolio during the third quarter came mainly from the transition of construction and land development (C&D) loans to permanent status.

For the third quarter of 2013, average loans totaled $11.8 billion, up almost $200 million from the second quarter of 2013.

Deposits

Total deposits at September 30, 2013 were $15.1 billion, down $101 million, or less than 1%, from June 30, 2013. Average deposits for the third quarter of 2013 were $15.0 billion, down $190 million, or 1%, from the second quarter of 2013.

Noninterest-bearing demand deposits (DDAs) totaled $5.5 billion at September 30, 2013, up $140 million, or 3%, compared to June 30, 2013. DDAs comprised 36% of total period-end deposits at September 30, 2013.

Time deposits (CDs) and interest-bearing public fund deposits totaled $3.6 billion at September 30, 2013, down $283 million, or 7%, from June 30, 2013. As noted previously, public fund deposits typically reflect higher balances at year-end with subsequent reductions beginning in the second quarter and continuing into the third quarter.

Asset Quality

Non-performing assets (NPAs) totaled $216 million at September 30, 2013, slightly down from June 30, 2013. During the third quarter total non-performing loans declined $14 million, while foreclosed and surplus real estate (ORE) and other foreclosed assets increased almost $14 million. Approximately $16 million was transferred into ORE when certain bank locations were closed on August 30, 2013 in connection with the Company's efficiency initiative. Excluding the branch transfers, NPAs totaled $200 million at September 30, 2013, down $16 million from June 30, 2013. Non-performing assets as a percent of total loans, ORE and other foreclosed assets was 1.83% at September 30, 2013, compared to 1.84% at June 30, 2013.

The Company's total allowance for loan losses was $138.2 million at September 30, 2013, up slightly from $138.0 million at June 30, 2013. The ratio of the allowance to period-end loans was 1.18%, unchanged from June 30, 2013. The allowance maintained on the originated portion of the loan portfolio totaled $77.4 million, or 0.89% of related loans, at September 30, 2013, compared to $76.4 million, or 0.93% of related loans, at June 30, 2013.

Net charge-offs from the non-covered loan portfolio were $5.4 million, or 0.18% of average total loans on an annualized basis in the third quarter of 2013, down from $7.0 million, or 0.24% of average total loans in the second quarter of 2013.

During the third quarter of 2013, Hancock recorded a total provision for loan losses of $7.6 million, down from $8.3 million in the second quarter of 2013. The provision for non-covered loans was $6.5 million in the third quarter of 2013, compared to $7.9 million in the second quarter of 2013. The net provision from the covered portfolio was $1.0 million for the third quarter of 2013 compared to $0.4 million for the second quarter of 2013.

Net Interest Income

Net interest income (TE) for the third quarter of 2013 was $174.1 million, up $2.3 million from the second quarter of 2013. Average earning assets were $16.4 billion in the third quarter of 2013, down $116 million, or less than 1%, from the second quarter of 2013.

The linked-quarter increase reflected mainly a higher level of total purchase-accounting loan accretion on acquired loans in the third quarter, mainly related to excess cash recoveries which can be volatile. Approximately $7.7 million ($.06 per diluted common share) of excess cash recoveries was included in the third quarter's results, while approximately $3.1 million ($.02 per diluted common share) was included in the second quarter's results. The slide presentation referenced below includes detailed information on expected loan accretion and excess cash recoveries.

The net interest margin (TE) was 4.23% for the third quarter of 2013, up 6 basis points (bps) from the second quarter of 2013. The core margin of 3.37% (reported net interest income (TE) excluding total net purchase accounting adjustments, annualized, as a percent of average earning assets) compressed 1 basis point during the third quarter of 2013. The continued decline in the core loan yield was offset by improvement in the yield on investment securities and a slight decline in the cost of funds.

Noninterest Income

Noninterest income totaled $63.1 million for the third quarter of 2013, down $0.8 million from the second quarter of 2013.

Service charges on deposits totaled $20.5 million for the third quarter of 2013, up $0.7 million, or 3%, from the second quarter of 2013. Bankcard and ATM fees totaled $12.2 million, up $0.8 million, or 7%, from the second quarter of 2013.

Trust, investment and annuity, and insurance fees totaled $18.3 million, down $1.5 million, or 8%, from the second quarter of 2013. The linked-quarter decrease reflects some seasonality in these lines of business, in addition to the impact of higher equity market valuations in the second quarter of 2013.

Fees from secondary mortgage operations totaled $2.5 million for the third quarter of 2013, down $1.7 million, or 40%, linked-quarter. The decline mainly reflects a lower level of loans sold during the quarter as noted earlier. Mortgage loan activity also slowed towards the end of the third quarter, reflecting mainly the impact of increased longer-term interest rates on originations.

Noninterest Expense & Taxes

Noninterest expense for the third quarter of 2013 totaled $182.2 million, including $20.9 million of one-time costs related mainly to the expense and efficiency initiative. Excluding these costs, noninterest expense (or operating expense) totaled $161.3 million, down $0.9 million from the second quarter of 2013.

Total personnel expense, the largest component of the Company's expense base, was $86.9 million in the third quarter of 2013, down $0.7 million, or 1%, from the second quarter of 2013.

ORE expense totaled $2.4 million in the third quarter of 2013, down $0.9 million from the second quarter, while other operating expense of $47.2 million was up $0.7 million, or 1%, from the second quarter of 2013.

The Company remains on track to achieve its efficiency and expense reduction target for the first quarter of 2014. In August of 2013, the Company completed the previously announced closing of 26 branch locations across its five-state footprint. The sales of 10 additional branch locations, which were also announced previously, are subject to regulatory approvals and certain closing conditions, and will be reflected in Hancock's fourth quarter 2013 and first quarter of 2014 financial results.

The effective income tax rate for the third quarter of 2013 was 26%, up slightly from the second quarter of 2013. The effective income tax rate continues to be less than the statutory rate of 35% due primarily to tax-exempt income and tax credits.

Capital

Common shareholders' equity totaled $2.4 billion at September 30, 2013 and the tangible common equity (TCE) ratio increased 16 bps to 8.68%. Management continues to review the strategic opportunities presented by Hancock's strong capital position, including additional stock buybacks, organic growth, acquisitions or increased dividends. Additional capital ratios are included in the financial tables.

Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 9:00 a.m. Central Time on Friday, October 25, 2013 to review the results. A live listen-only webcast of the call will be available under the Investor Relations section of Hancock's website at www.hancockbank.com . A slide presentation related to third quarter results is also posted as part of the webcast link. To participate in the Q&A portion of the call, dial (877) 564-1219 or (973) 638-3429. An audio archive of the conference call will be available under the Investor Relations section of our website. A replay of the call will also be available through October 31, 2013 by dialing (855) 859-2056 or (404) 537-3406, passcode 74981574.

About Hancock Holding Company

Hancock Holding Company is the parent company of Hancock Bank and Whitney Bank. The Company operates as Hancock Bank in south Mississippi, southern and central Alabama, and the northern, central, and panhandle regions of Florida; and as Whitney Bank in south Louisiana and Houston, Texas. The Hancock Holding Company family of financial services companies also includes Hancock Investment Services, Inc.; Hancock Insurance Agency and Whitney Insurance Agency, Inc.; corporate trust offices in Gulfport and Jackson, Mississippi, New Orleans and Baton Rouge, Louisiana, and Orlando, Florida; and Harrison Finance Company. Additional information is available at www.hancockbank.com and www.whitneybank.com .

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended, and we intend such forward-looking statements to be covered by the safe harbor provisions therein and are including this statement for purposes of invoking these safe-harbor provisions. Forward-looking statements provide projections of results of operations or of financial condition or state other forward-looking information, such as expectations about future conditions and descriptions of plans and strategies for the future .

Forward-looking statements that we may make include, but may not be limited to, comments with respect to future levels of economic activity in our markets, loan growth, deposit trends, credit quality trends, future sales of nonperforming assets, net interest margin trends, future expense levels and the ability to achieve reductions in non-interest expense or other cost savings, projected tax rates, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts such as accretion levels, the impact of the branch rationalization process, and the financial impact of regulatory requirements.

Hancock's ability to accurately project results or predict the effects of future plans or strategies is inherently limited. Although Hancock believes that the expectations reflected in its forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ from those expressed in Hancock's forward-looking statements include, but are not limited to, those risk factors outlined in Hancock's public filings with the Securities and Exchange Commission, which are available at the SEC's internet site ( http://www.sec.gov ).

You are cautioned not to place undue reliance on these forward-looking statements. Hancock does not intend, and undertakes no obligation, to update or revise any forward-looking statements, whether as a result of differences in actual results, changes in assumptions or changes in other factors affecting such statements, except as required by law.


Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)

	Three Months Ended			Nine Months Ended
	9/30/2013	6/30/2013	9/30/2012	9/30/2013	9/30/2012
Per Common Share Data

Earnings per share:
Basic	$0.40	$0.55	$0.55	$1.51	$1.23
Diluted	$0.40	$0.55	$0.55	$1.51	$1.22
Operating earnings per share: (a)
Basic	$0.56	$0.55	$0.58	$1.67	$1.61
Diluted	$0.56	$0.55	$0.58	$1.67	$1.60
Cash dividends per share	$0.24	$0.24	$0.24	$0.72	$0.72
Book value per share (period-end)	$28.70	$28.57	$28.71	$28.70	$28.71
Tangible book value per share (period-end)	$19.04	$18.83	$18.97	$19.04	$18.97
Weighted average number of shares:
Basic	82,091	83,279	84,777	83,404	84,757
Diluted	82,205	83,357	85,632	83,496	85,525
Period-end number of shares	82,107	82,078	84,782	82,107	84,782
Market data:
High sales price	$33.85	$30.93	$33.27	$33.85	$36.73
Low sales price	$29.00	$25.00	$27.99	$25.00	$27.96
Period end closing price	$31.38	$30.07	$30.98	$31.38	$30.98
Trading volume	29,711	38,599	26,877	97,779	98,609


Other Period-end Data

FTE headcount	4,068	4,160	4,290	4,068	4,290
Tangible common equity	$1,563,542	$1,545,122	$1,608,285	$1,563,542	$1,608,285
Tier I capital	$1,657,136	$1,632,874	$1,631,372	$1,657,136	$1,631,372
Goodwill	$625,675	$625,675	$628,877	$625,675	$628,877
Amortizing intangibles	$167,116	$174,423	$197,139	$167,116	$197,139

Performance Ratios

Return on average assets	0.70%	0.99%	1.00%	0.91%	0.74%
Return on average assets (operating) (a)	0.99%	0.99%	1.07%	1.00%	0.97%
Return on average common equity	5.63%	7.82%	7.77%	7.18%	5.86%
Return on average common equity (operating) (a)	7.93%	7.82%	8.24%	7.93%	7.68%
Return on average tangible common equity	8.54%	11.74%	11.87%	10.80%	9.06%
Return on average tangible common equity (operating) (a)	12.03%	11.74%	12.59%	11.94%	11.88%
Tangible common equity ratio	8.68%	8.52%	9.09%	8.68%	9.09%
Earning asset yield (TE)	4.47%	4.42%	4.84%	4.50%	4.82%
Total cost of funds	0.24%	0.25%	0.30%	0.26%	0.34%
Net interest margin (TE)	4.23%	4.17%	4.54%	4.24%	4.48%
Efficiency ratio (b)	64.95%	65.68%	64.33%	64.93%	65.93%
Allowance for loan losses as a percent of period-end loans	1.18%	1.18%	1.19%	1.18%	1.19%
Allowance for loan losses to non-performing loans + accruing loans 90 days past due	94.69%	91.43%	77.81%	94.69%	77.81%
Average loan/deposit ratio	78.70%	76.41%	75.85%	76.80%	74.14%
Noninterest income excluding securities transactions as a percent of total revenue (TE)	26.59%	27.11%	25.86%	26.36%	25.83%

(a) Excludes tax-effected securities transactions and one-time noninterest expense items. Management believes that operating income provides a useful measure of financial performance that helps investors compare the Company's fundamental operations over time.

(b) Efficiency ratio is defined as noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles, one-time noninterest expense items, and securities transactions.


Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)

	Three Months Ended			Nine Months Ended
	9/30/2013	6/30/2013	9/30/2012	9/30/2013	9/30/2012
Asset Quality Information

Non-accrual loans (c)	$100,649	$110,516	$135,499	$100,649	$135,499
Restructured loans (d)	29,705	33,741	32,339	29,705	32,339
Total non-performing loans	130,354	144,257	167,838	130,354	167,838
ORE and foreclosed assets	85,560	72,235	130,613	85,560	130,613
Total non-performing assets	$215,914	$216,492	$298,451	$215,914	$298,451
Non-performing assets as a percent of loans, ORE and foreclosed assets	1.83%	1.84%	2.58%	1.83%	2.58%
Accruing loans 90 days past due (c)	$15,620	$6,647	$6,423	$15,620	$6,423
Accruing loans 90 days past due as a percent of loans	0.13%	0.06%	0.06%	0.13%	0.06%
Non-performing assets + accruing loans 90 days past due to loans, ORE and foreclosed assets	1.96%	1.90%	2.64%	1.96%	2.64%

Net charge-offs - non-covered	$5,430	$7,032	$9,728	$19,095	$26,993
Net charge-offs - covered	506	2,026	3,550	5,754	22,839
Net charge-offs - non-covered as a percent of average loans	0.18%	0.24%	0.34%	0.22%	0.32%

Allowance for loan losses	$138,223	$137,969	$135,591	$138,223	$135,591
Allowance for loan losses as a percent of period-end loans	1.18%	1.18%	1.19%	1.18%	1.19%
Allowance for loan losses to non-performing loans + accruing loans 90 days past due	94.69%	91.43%	77.81%	94.69%	77.81%

Provision for loan losses	$7,569	$8,257	$8,101	$25,404	$26,141

Allowance for Loan Losses

Beginning Balance	$137,969	$137,777	$140,768	$136,171	$124,881
Net provision for loan losses - covered loans	1,024	362	--	7,987	2,624
Provision for loan losses - non-covered loans	6,545	7,895	8,101	17,417	23,517
Net provision for loan losses	7,569	8,257	8,101	25,404	26,141
Increase (decrease) in FDIC loss share receivable	(1,379)	993	--	1,497	34,401
Charge-offs - non-covered	8,698	11,451	12,211	31,386	34,588
Recoveries - non-covered	(3,268)	(4,419)	(2,483)	(12,291)	(7,595)
Net charge-offs - covered	506	2,026	3,550	5,754	22,839
Net charge-offs	5,936	9,058	13,278	24,849	49,832
Ending Balance	$138,223	$137,969	$135,591	$138,223	$135,591


Net Charge-off Information

Net charge-offs - non-covered:
Commercial/real estate loans	$1,267	$3,834	$3,905	$9,405	$13,811
Residential mortgage loans	541	702	2,012	891	4,579
Consumer loans	3,622	2,496	3,811	8,799	8,603
Total net charge-offs - non-covered	$5,430	$7,032	$9,728	$19,095	$26,993

Average loans:
Commercial/real estate loans	$8,582,849	$8,418,140	$8,018,634	$8,429,559	$7,994,444
Residential mortgage loans	1,668,201	1,625,672	1,573,559	1,640,320	1,557,210
Consumer loans	1,570,345	1,579,397	1,667,399	1,589,366	1,646,100
Total average loans	$11,821,395	$11,623,209	$11,259,592	$11,659,245	$11,197,754

Net charge-offs - non-covered to average loans:
Commercial/real estate loans	0.06%	0.18%	0.19%	0.15%	0.23%
Residential mortgage loans	0.13%	0.17%	0.51%	0.07%	0.39%
Consumer loans	0.92%	0.63%	0.91%	0.74%	0.70%
Total net charge-offs - non-covered to average loans	0.18%	0.24%	0.34%	0.22%	0.32%

(c) Non-accrual loans and accruing loans past due 90 days or more do not include non-accrual restructured loans and acquired credit-impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.

(d) Included in restructured loans are $19.1 million, $22.2 million, and $21.6 million in non-accrual loans at 9/30/13, 6/30/13, and 9/30/12, respectively. Total excludes acquired credit-impaired loans.



Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)

	Three Months Ended			Nine Months Ended
	9/30/2013	6/30/2013	9/30/2012	9/30/2013	9/30/2012
Income Statement

Interest income	$181,639	$179,649	$189,205	$546,560	$571,410
Interest income (TE)	184,221	182,292	192,071	554,511	580,060
Interest expense	10,109	10,470	11,949	31,836	40,407
Net interest income (TE)	174,112	171,822	180,122	522,675	539,653
Provision for loan losses	7,569	8,257	8,101	25,404	26,141
Noninterest income excluding securities transactions	63,057	63,897	62,842	187,141	187,888
Securities transactions gains	--	--	917	--	929
Noninterest expense	182,205	162,250	169,714	504,057	555,149
Income before income taxes	44,813	62,569	63,200	172,404	138,530
Income tax expense	11,611	15,707	16,216	43,764	33,747
Net income	$33,202	$46,862	$46,984	$128,640	$104,783

Adjustments from net to operating income
Securities transactions gains	--	--	917	--	929
One-time noninterest expense items
Merger-related expenses	--	--	(38)	--	45,789
Sub-debt early redemption costs	--	--	5,336	--	5,336
Expense & efficiency initiative and other items	20,887	--	--	20,887	--
Total one-time noninterest expense items	20,887	--	5,298	20,887	51,125
Taxes on adjustments at 35%	7,310	--	1,533	7,310	17,569
Total adjustments (net of taxes)	13,577	--	2,848	13,577	32,627
Operating income (e)	$46,779	$46,862	$49,832	$142,217	$137,410

Noninterest Income and Noninterest Expense

Service charges on deposit accounts	$20,519	$19,864	$20,834	$59,398	$58,015
Trust fees	9,477	9,803	7,743	27,972	24,464
Bank card and ATM fees	12,221	11,399	11,869	34,678	37,586
Investment & annuity fees	5,186	5,192	4,269	14,955	13,291
Secondary mortgage market operations	2,467	4,139	4,312	10,989	11,328
Insurance fees	3,661	4,845	4,045	12,500	12,103
Other income	9,526	8,655	9,770	26,649	31,101
Noninterest income excluding securities transactions	63,057	63,897	62,842	187,141	187,888
Securities transactions gains	--	--	917	--	929
Total noninterest income including securities transactions	$63,057	$63,897	$63,759	$187,141	$188,817

Personnel expense	$86,850	$87,595	$88,176	$262,372	$269,376
Occupancy expense (net)	12,369	12,404	13,169	37,099	41,173
Equipment expense	5,120	4,919	5,010	15,340	16,811
Other real estate owned expense (net)	2,439	3,355	4,590	6,502	10,014
Other operating expense	47,234	46,546	45,361	139,565	142,314
Amortization of intangibles	7,306	7,431	8,110	22,292	24,336
Total operating expense	161,318	162,250	164,416	483,170	504,024
One-time noninterest expense items	20,887	--	5,298	20,887	51,125
Total noninterest expense	$182,205	$162,250	$169,714	$504,057	$555,149

(e) Net income less tax-effected securities gains/losses and one-time noninterest expense items. Management believes that operating income provides a useful measure of financial performance that helps investors compare the Company's fundamental operations over time.


Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)

	Three Months Ended
	9/30/2013	6/30/2013	3/31/2013	12/31/2012	9/30/2012
Period-end Balance Sheet

Commercial non-real estate loans	$4,625,315	$4,653,342	$4,425,286	$4,433,288	$4,235,823
Construction and land development loans	920,408	966,499	992,820	989,306	1,044,637
Commercial real estate loans	2,914,969	2,872,254	2,873,403	2,923,094	2,907,007
Residential mortgage loans	1,695,197	1,616,093	1,587,519	1,577,944	1,561,640
Consumer loans	1,578,583	1,573,309	1,603,734	1,654,170	1,685,341
Total loans	11,734,472	11,681,497	11,482,762	11,577,802	11,434,448
Loans held for sale	18,444	20,233	34,813	50,605	50,389
Securities	4,124,202	4,303,918	4,662,279	3,716,460	4,053,271
Short-term investments	462,313	442,917	475,677	1,500,188	320,057
Earning assets	16,339,431	16,448,565	16,655,531	16,845,055	15,858,165
Allowance for loan losses	(138,223)	(137,969)	(137,777)	(136,171)	(135,591)
Other assets	2,600,638	2,623,705	2,546,369	2,755,601	2,800,472
Total assets	$18,801,846	$18,934,301	$19,064,123	$19,464,485	$18,523,046

Noninterest bearing deposits	$5,479,696	$5,340,177	$5,418,463	$5,624,127	$5,151,146
Interest bearing transaction and savings deposits	6,008,042	5,965,372	6,017,735	6,038,003	5,876,638
Interest bearing public fund deposits	1,240,336	1,410,866	1,528,790	1,580,260	1,321,227
Time deposits	2,326,797	2,439,523	2,288,363	2,501,798	2,423,940
Total interest bearing deposits	9,575,175	9,815,761	9,834,888	10,120,061	9,621,805
Total deposits	15,054,871	15,155,938	15,253,351	15,744,188	14,772,951
Short-term borrowings	782,779	828,107	722,537	639,133	748,634
Long-term debt	376,664	385,122	393,920	396,589	308,327
Other liabilities	231,090	219,794	217,215	231,297	258,646
Common shareholders' equity	2,356,442	2,345,340	2,477,100	2,453,278	2,434,488
Total liabilities & common equity	$18,801,846	$18,934,301	$19,064,123	$19,464,485	$18,523,046

Capital Ratios

Common shareholders' equity	$2,356,442	$2,345,340	$2,477,100	$2,453,278	$2,434,488
Tier 1 capital (f)	1,657,136	1,632,874	1,700,115	1,668,809	1,631,372
Tangible common equity ratio	8.68%	8.52%	9.14%	8.77%	9.09%
Common equity (period-end) as a percent of total assets (period-end)	12.53%	12.39%	12.99%	12.60%	13.14%
Leverage (Tier 1) ratio (f)	9.17%	8.96%	9.28%	9.11%	9.17%
Tier 1 risk-based capital ratio (f)	12.16%	11.98%	12.78%	12.64%	12.49%
Total risk-based capital ratio (f)	13.62%	13.43%	14.41%	14.28%	14.14%

(f) Estimated for most recent period-end.


Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)

	Three Months Ended			Nine Months Ended
	9/30/2013	6/30/2013	9/30/2012	9/30/2013	9/30/2012
Average Balance Sheet

Commercial non-real estate loans	$4,720,608	$4,539,259	$4,056,457	$4,558,934	$3,903,767
Construction and land development loans	970,411	984,449	1,092,181	976,702	1,197,915
Commercial real estate loans	2,891,830	2,894,432	2,869,996	2,893,923	2,892,762
Residential mortgage loans	1,668,201	1,625,672	1,573,559	1,640,320	1,557,210
Consumer loans	1,570,345	1,579,397	1,667,399	1,589,366	1,646,100
Total loans (g)	11,821,395	11,623,209	11,259,592	11,659,245	11,197,754
Securities (h)	4,135,348	4,423,441	4,039,191	4,163,436	4,174,956
Short-term investments	427,892	453,565	531,195	644,349	705,205
Earning assets	16,384,635	16,500,215	15,829,978	16,467,030	16,077,915
Allowance for loan losses	(137,936)	(137,815)	(140,661)	(137,624)	(136,257)
Other assets	2,549,328	2,660,432	2,909,649	2,659,791	2,983,774
Total assets	$18,796,027	$19,022,832	$18,598,966	$18,989,197	$18,925,432

Noninterest bearing deposits	$5,415,303	$5,346,916	$5,076,152	$5,359,325	$5,194,751
Interest bearing transaction and savings deposits	5,919,709	5,965,769	5,869,281	5,955,711	5,792,586
Interest bearing public fund deposits	1,302,425	1,483,267	1,426,405	1,463,750	1,491,514
Time deposits	2,384,248	2,415,411	2,473,450	2,402,061	2,624,039
Total interest bearing deposits	9,606,382	9,864,447	9,769,136	9,821,522	9,908,139
Total deposits	15,021,685	15,211,363	14,845,288	15,180,847	15,102,890
Short-term borrowings	820,500	790,103	794,925	791,641	842,702
Long-term debt	385,203	393,641	317,379	391,712	344,638
Other liabilities	229,694	222,656	236,134	228,056	245,940
Common shareholders' equity	2,338,945	2,405,069	2,405,240	2,396,941	2,389,262
Total liabilities & common equity	$18,796,027	$19,022,832	$18,598,966	$18,989,197	$18,925,432

(g) Includes loans held for sale

(h) Average securities does not include unrealized holding gains/losses on available for sale securities.


Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)

	Three Months Ended
	9/30/2013			6/30/2013			9/30/2012
	Interest	Volume	Rate	Interest	Volume	Rate	Interest	Volume	Rate

Average Earning Assets
Commercial & real estate loans (TE)	$109,450	$8,582,849	5.06%	$103,344	$8,418,140	4.92%	$109,069	$8,018,634	5.41%
Residential mortgage loans	24,968	1,668,201	5.99%	27,540	1,625,672	6.78%	28,533	1,573,559	7.25%
Consumer loans	25,740	1,570,345	6.51%	26,534	1,579,397	6.74%	29,942	1,667,399	7.14%
Loan fees & late charges	689	--	0.00%	1,236	--	0.00%	891	--	0.00%
Total loans (TE)	160,847	11,821,395	5.41%	158,654	11,623,209	5.47%	168,435	11,259,592	5.95%

US Treasury and government agency securities	33	5,585	2.34%	1	150	2.67%	51	18,419	1.10%
CMOs	7,278	1,463,403	1.99%	7,454	1,589,017	1.88%	7,820	1,663,741	1.88%
Mortgage backed securities	13,042	2,410,763	2.16%	13,217	2,593,270	2.04%	12,530	2,097,097	2.39%
Municipals (TE)	2,715	247,140	4.39%	2,630	232,987	4.51%	2,864	252,771	4.51%
Other securities	53	8,457	2.51%	56	8,017	2.79%	63	7,163	3.58%
Total securities (TE) (i)	23,121	4,135,348	2.24%	23,358	4,423,441	2.11%	23,328	4,039,191	2.30%

Total short-term investments	253	427,892	0.23%	280	453,565	0.25%	308	531,195	0.23%

Average earning assets yield (TE)	$184,221	$16,384,635	4.47%	$182,292	$16,500,215	4.42%	$192,071	$15,829,978	4.84%

Interest-bearing Liabilities
Interest-bearing transaction and savings deposits	$1,398	$5,919,709	0.09%	$1,542	$5,965,769	0.10%	$1,688	$5,869,281	0.11%
Time deposits	3,687	2,384,248	0.61%	3,795	2,415,411	0.63%	4,829	2,473,450	0.78%
Public funds	766	1,302,425	0.23%	852	1,483,267	0.23%	1,002	1,426,405	0.28%
Total interest bearing deposits	5,851	9,606,382	0.24%	6,189	9,864,447	0.25%	7,519	9,769,136	0.31%

Short-term borrowings	1,074	820,500	0.52%	1,058	790,103	0.54%	1,522	794,925	0.76%
Long-term debt	3,184	385,203	3.28%	3,223	393,641	3.28%	2,908	317,379	3.65%
Total borrowings	4,258	1,205,703	1.40%	4,281	1,183,744	1.45%	4,430	1,112,304	1.58%

Total interest bearing liabilities cost	$10,109	$10,812,085	0.37%	$10,470	$11,048,191	0.38%	$11,949	$10,881,440	0.44%

Net interest-free funding sources		5,572,550			5,452,024			4,948,538

Total Cost of Funds	$10,109	$16,384,635	0.24%	$10,470	$16,500,215	0.25%	$11,949	$15,829,978	0.30%

Net Interest Spread (TE)	$174,112		4.10%	$171,822		4.04%	$180,122		4.40%

Net Interest Margin (TE)	$174,112	$16,384,635	4.23%	$171,822	$16,500,215	4.17%	$180,122	$15,829,978	4.54%

(i) Average securities does not include unrealized holding gains/losses on available for sale securities.


Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)

	Nine Months Ended
	9/30/2013			9/30/2012
	Interest	Volume	Rate	Interest	Volume	Rate

Average Earning Assets
Commercial & real estate loans (TE)	$326,090	$8,429,559	5.17%	$330,355	$7,994,444	5.52%
Residential mortgage loans	78,188	1,640,320	6.36%	83,664	1,557,210	7.16%
Consumer loans	78,775	1,589,366	6.63%	86,876	1,646,100	7.05%
Loan fees & late charges	2,493	--	0.00%	3,238	--	0.00%
Total loans (TE)	485,546	11,659,245	5.56%	504,133	11,197,754	6.01%

US Treasury and government agency securities	51	3,771	1.81%	2,052	126,273	2.17%
CMOs	21,823	1,528,825	1.90%	22,586	1,534,909	1.96%
Mortgage backed securities	37,864	2,390,098	2.11%	40,858	2,237,794	2.43%
Municipals (TE)	7,899	232,478	4.53%	8,872	267,793	4.42%
Other securities	150	8,264	2.42%	255	8,187	4.15%
Total securities (TE) (j)	67,787	4,163,436	2.17%	74,623	4,174,956	2.39%

Total short-term investments	1,178	644,349	0.24%	1,304	705,205	0.25%

Average earning assets yield (TE)	$554,511	$16,467,030	4.50%	$580,060	$16,077,915	4.82%

Interest-Bearing Liabilities
Interest-bearing transaction deposits	$4,599	$5,955,711	0.10%	$5,634	$5,792,586	0.13%
Time deposits	11,568	2,402,061	0.64%	16,735	2,624,039	0.85%
Public funds	2,618	1,463,750	0.24%	3,285	1,491,514	0.29%
Total interest bearing deposits	18,785	9,821,522	0.26%	25,654	9,908,139	0.35%

Short-term borrowings	3,450	791,641	0.58%	4,792	842,702	0.76%
Long-term debt	9,601	391,712	3.28%	9,961	344,638	3.86%
Total borrowings	13,051	1,183,353	1.47%	14,753	1,187,340	1.66%

Total interest bearing liabilities cost	$31,836	$11,004,875	0.39%	$40,407	$11,095,479	0.49%

Net interest-free funding sources		5,462,155			4,982,436

Total Cost of Funds	$31,836	$16,467,030	0.26%	$40,407	$16,077,915	0.34%

Net Interest Spread (TE)	$522,675		4.11%	$539,653		4.33%

Net Interest Margin (TE)	$522,675	$16,467,030	4.24%	$539,653	$16,077,915	4.48%

(j) Average securities does not include unrealized holding gains/losses on available for sale securities.


Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
	Three Months Ended
	9/30/2013	6/30/2013	3/31/2013	12/31/2012	9/30/2012
Per Common Share Data

Earnings per share:
Basic	$0.40	$0.55	$0.56	$0.55	$0.55
Diluted	$0.40	$0.55	$0.56	$0.54	$0.55
Operating earnings per share: (k)
Basic	$0.56	$0.55	$0.56	$0.54	$0.58
Diluted	$0.56	$0.55	$0.56	$0.54	$0.58
Cash dividends per share	$0.24	$0.24	$0.24	$0.24	$0.24
Book value per share (period-end)	$28.70	$28.57	$29.18	$28.91	$28.71
Tangible book value per share (period-end)	$19.04	$18.83	$19.67	$19.27	$18.97
Weighted average number of shares:
Basic	82,091	83,279	84,871	84,798	84,777
Diluted	82,205	83,357	84,972	85,777	85,632
Period-end number of shares	82,107	82,078	84,882	84,848	84,782
Market data:
High sales price	$33.85	$30.93	$33.59	$32.50	$33.27
Low sales price	$29.00	$25.00	$29.37	$29.47	$27.99
Period end closing price	$31.38	$30.07	$30.92	$31.73	$30.98
Trading volume	29,711	38,599	29,469	20,910	26,877

Other Period-end Data

FTE headcount	4,068	4,160	4,197	4,235	4,290
Tangible common equity	$1,563,542	$1,545,122	$1,669,435	$1,634,833	$1,608,285
Tier I capital	$1,657,136	$1,632,874	$1,700,115	$1,668,809	$1,631,372
Goodwill	$625,675	$625,675	$625,675	$628,877	$628,877
Amortizing intangibles	$167,116	$174,423	$181,853	$189,409	$197,139

Performance Ratios

Return on average assets	0.70%	0.99%	1.03%	0.99%	1.00%
Return on average assets (operating) (k)	0.99%	0.99%	1.03%	0.98%	1.07%
Return on average common equity	5.63%	7.82%	8.05%	7.67%	7.77%
Return on average common equity (operating) (k)	7.93%	7.82%	8.05%	7.60%	8.24%
Return on average tangible common equity	8.54%	11.74%	12.04%	11.58%	11.87%
Return on average tangible common equity (operating) (k)	12.03%	11.74%	12.04%	11.48%	12.59%
Tangible common equity ratio	8.68%	8.52%	9.14%	8.77%	9.09%
Earning asset yield (TE)	4.47%	4.42%	4.60%	4.76%	4.84%
Total cost of funds	0.24%	0.25%	0.28%	0.28%	0.30%
Net interest margin (TE)	4.23%	4.17%	4.32%	4.48%	4.54%
Efficiency ratio (l)	64.95%	65.68%	64.17%	60.78%	64.33%
Allowance for loan losses as a percent of period-end loans	1.18%	1.18%	1.20%	1.18%	1.19%
Allowance for loan losses to non-performing loans + accruing loans 90 days past due	94.69%	91.43%	87.34%	81.40%	77.81%
Average loan/deposit ratio	78.70%	76.41%	75.30%	76.29%	75.85%
Noninterest income excluding securities transactions as a percent of total revenue (TE)	26.59%	27.11%	25.40%	26.02%	25.86%

(k) Excludes tax-effected securities transactions and one-time noninterest expense items. Management believes that operating income provides a useful measure of financial performance that helps investors compare the Company's fundamental operations over time.

(l) Efficiency ratio is defined as noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles, one-time noninterest expense items, and securities transactions.

For More Information Trisha Voltz Carlson SVP, Investor Relations Manager 504.299.5208

(0)

(0)