UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 24, 2014
HANCOCK HOLDING COMPANY
(Exact name of registrant as specified in its charter)
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Mississippi |
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0-13089 |
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64-0693170 |
(State or other jurisdiction
of incorporation) |
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(Commission
File Number) |
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(I.R.S. Employer
Identification No.) |
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One Hancock Plaza
2510 14th Street
Gulfport, Mississippi |
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39501 |
(Address of principal executive offices) |
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(Zip Code) |
(228) 868-4000
(Registrants telephone number, including area code)
Not Applicable
(Former
name or former address, if changed since last report)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 |
Results of Operations and Financial Condition. |
On July 24, 2014, Hancock Holding
Company issued a press release reporting its second quarter earnings for the period ended June 30, 2014. A copy of this press release and the accompanying financial statements and slide presentation are attached hereto as Exhibit 99.1.
Item 9.01 |
Financial Statements and Exhibits. |
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Exhibit Number |
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Description |
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99.1 |
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Press Release dated July 24, 2014 for Quarter Ended June 30, 2014. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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HANCOCK HOLDING COMPANY |
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July 24, 2014 |
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/s/ Michael M. Achary |
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Michael M. Achary |
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Chief Financial Officer |
Exhibit 99.1
For Immediate Release
July 24, 2014
For More Information
Trisha Voltz Carlson
SVP, Investor Relations Manager
504.299.5208
trisha.carlson@hancockbank.com
Hancock reports second quarter 2014
financial results
Board of Directors Authorizes New 5% Common Stock Buyback
GULFPORT, Miss. (July 24, 2014) Hancock Holding Company (Nasdaq: HBHC) today announced its financial results for the second quarter of 2014. Operating
income for the second quarter of 2014 was $49.6 million or $.59 per diluted common share, compared to $49.1 million, or $.58 in the first quarter of 2014. Operating income was $46.9 million, or $.55, in the second quarter of 2013. We define our
operating income as net income excluding tax-effected securities transactions gains or losses and nonoperating expense items. Management believes that operating income provides a useful measure of financial performance that helps investors compare
the companys fundamental operations over time. The financial tables include a reconciliation of net income to operating income.
In the second
quarter of 2014 net income was $40.0 million, or $.48 per diluted common share. Net income reflects the impact of certain nonoperating expenses of $12.1 million. Nonoperating expenses are detailed in the slide presentation accompanying the release.
There were no adjustments between operating income and net income for the first quarter of 2014 and second quarter of 2013.
Highlights of the
companys second quarter of 2014 results:
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Ongoing improvement in the overall quality of earnings (replacing declining purchase accounting income with core results); core net interest income (TE) increased approximately $700,000 linked-quarter; core net interest
margin (NIM) narrowed 2 basis points (bps) (we define our core results as reported results less the impact of net purchase accounting adjustments); core noninterest income increased approximately $1.0 million (after adjusting for the impact from
purchase accounting items and normalizing for the sale of selected insurance lines in early second quarter 2014) |
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Operating expenses declined $2.3 million linked-quarter, or 1.5%, exceeding the companys expense management goals; however, management expects increases in operating expense in the near-term as investments are
made in revenue-generating initiatives |
1
Hancock reports second quarter 2014 financial results
July 24, 2014
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Efficiency ratio declined slightly to just under 62%; the company continues working on its goal of lowering the efficiency ratio to below 60% |
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Approximately $383 million, or 13%, linked-quarter annualized net loan growth, and approximately $1.3 billion, or 12%, year-over-year loan growth (each excluding the FDIC-covered portfolio) |
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Purchase accounting loan accretion declined $1.6 million linked-quarter; management expects sizeable quarterly declines in both the third and fourth quarters of 2014 |
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Continued improvement in asset quality metrics |
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Solid capital levels with a tangible common equity (TCE) ratio of 9.29% |
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Return on average assets (ROA) (operating) of 1.04% compared to 1.05% in the first quarter of 2014 and 0.99% in the second quarter a year ago |
The quarters results reflected solid performance across the company as we continued to improve the quality of our earnings by replacing purchase
accounting income with core earnings, said Hancocks President and Chief Executive Officer Carl J. Chaney. The double-digit loan growth, improvements in core revenue, reduced operating expense, improved asset quality and capital
strength reflected in the second quarters numbers, contributed to the boards decision and confidence in authorizing another common stock buyback. We remain focused on executing and achieving the strategic initiatives currently underway,
with the ultimate goal of enhancing shareholder value.
Loans
Total loans at June 30, 2014 were $12.9 billion, up $356 million from March 31, 2014. Excluding the FDIC-covered portfolio, which declined $27
million during the second quarter of 2014, total loans increased approximately $383 million, or 3% linked-quarter.
The largest component of
linked-quarter net loan growth (excluding the FDIC-covered portfolio) was in the commercial and industrial portfolio, with additional growth and change in mix from the construction, residential mortgage and consumer portfolios. The majority of the
growth during the second quarter came from the Houston and south Louisiana markets. For the full year of 2014 management expects period-end annual loan growth to be in the 8-11% range.
Average loans totaled $12.7 billion for the second quarter of 2014, up $302 million, or 2%, from the first quarter of 2014.
Deposits
Total deposits at June 30, 2014 were $15.2
billion, virtually unchanged from March 31, 2014. Average deposits for the second quarter of 2014 were $15.1 billion, down $209 million, or 1%, from the first quarter of 2014.
Noninterest-bearing demand deposits (DDAs) totaled $5.7 billion at June 30, 2014, up $110 million, or 2%, compared to March 31, 2014. DDAs comprised
38% of total period-end deposits at June 30, 2014.
Interest-bearing transaction and savings deposits totaled $6.1 billion at the end of the second
quarter of 2014, down $38 million, or less than 1%, from March 31, 2014.
2
Hancock reports second quarter 2014 financial results
July 24, 2014
Time deposits (CDs) and interest-bearing public fund deposits totaled $3.4 billion at June 30, 2014, down $101 million, or 3%, from March 31, 2014. The decline was related to short-term
time deposits that matured during the second quarter and were not renewed.
Asset Quality
Nonperforming assets (NPAs) totaled $157.5 million at June 30, 2014, down $22.2 million from March 31, 2014. During the second quarter of 2014, total
nonperforming loans declined $12.1 million while foreclosed and surplus real estate (ORE) and other foreclosed assets decreased $10.1 million. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 1.22% at
June 30, 2014, down 21 bps from March 31, 2014.
The total allowance for loan losses was $128.7 million at June 30, 2014, up slightly from
$128.2 million at March 31, 2014. The ratio of the allowance for loan losses to period-end loans was 1.00%, compared to 1.02% at the end of the first quarter of 2014. The change in the allowance during the second quarter was primarily related
to a $2.7 million increase in allowance maintained on the noncovered portion of the loan portfolio, offset by a $2.3 million reduction in the allowance on covered loans.
Net charge-offs from the noncovered loan portfolio were $4.1 million, or 0.13% of average total loans on an annualized basis in the second quarter of 2014,
virtually unchanged from $4.0 million, or 0.13% of average total loans in the first quarter of 2014.
During the second quarter of 2014, Hancock recorded
a total provision for loan losses of $6.7 million, down $1.3 million from the first quarter of 2014. The provision for noncovered loans was $6.8 million in the second quarter of 2014, down from $8.3 million in the first quarter of 2014.
Net Interest Income and Net Interest Margin
Net
interest income (TE) for the second quarter of 2014 was $167.3 million, down less than $1 million from the first quarter of 2014. The impact of purchase accounting items on net interest income was $26.7 million, down $1.6 million linked-quarter.
Excluding the impact from purchase accounting items, core net interest income increased $0.7 million linked-quarter. Average earning assets were $16.8 billion, up approximately $51 million from the first quarter of 2014.
The reported net interest margin (TE) was 3.99% for the second quarter of 2014, down 7 bps from the first quarter of 2014. The core net interest margin
(reported net interest income (TE) excluding total net purchase accounting adjustments, annualized, as a percent of average earning assets) declined 2 bps to 3.35% during the second quarter of 2014. Declines in the core loan yield (-5 bps) and
securities portfolio yield (-4 bps) were partly offset by an improved earning asset mix and lower cost of funds (-1 bp).
3
Hancock reports second quarter 2014 financial results
July 24, 2014
Noninterest Income
Noninterest income, including securities transactions, totaled $56.4 million for the second quarter of 2014, virtually unchanged from the first quarter of
2014. Included in the total is a reduction of $3.3 million related to the amortization of the indemnification asset, compared to a reduction of $3.9 million in the first quarter of 2014. The total for the second quarter also reflects the divestiture
of selected insurance business lines effective April 1, 2014. The loss of income from the divestiture was approximately $1.8 million per quarter. Excluding the impact of these items, core noninterest income increased by approximately $1.0
million linked-quarter.
Service charges on deposits totaled $19.3 million for the second quarter of 2014, up $0.6 million, or 3%, from the first quarter
of 2014. Bankcard and ATM fees totaled $11.6 million, up $1.0 million, or 10%, from the first quarter of 2014.
Trust fees totaled $11.5 million, up $1.3
million, or 12%, from the first quarter of 2014 reflecting, in part, a seasonal increase related to tax preparation fees.
Fees from secondary mortgage
operations totaled $1.8 million for the second quarter of 2014, down $0.2 million, or 11%, linked-quarter. A slightly higher percentage of the mortgage loans originated during the quarter were kept on the balance sheet as opposed to being sold in
the secondary market.
Noninterest Expense & Taxes
Noninterest expense for the second quarter of 2014 totaled $156.9 million and included $12.1 million of nonoperating expenses. Excluding these costs,
operating expense totaled $144.7 million in the second quarter of 2014, down $2.3 million, or 1.5%, linked-quarter. (The details of the changes in the noninterest expense categories noted below exclude the impact of nonoperating items.)
Total personnel expense was $79.5 million in the second quarter of 2014, down $1.9 million, or 2%, from the first quarter of 2014 reflecting, in part,
seasonal items included in the first quarter. Occupancy and equipment expense totaled $14.9 million in the second quarter of 2014, down $0.6 million, or 4%, from the first quarter of 2014.
ORE expense totaled $84,000 in the second quarter of 2014, compared to $1.8 million in the first quarter of 2014. ORE expense in the second quarter includes
net gains on ORE dispositions, and management does not expect this low level of ORE expense to be sustainable in future quarters.
Other operating expense
totaled $43.5 million in the second quarter of 2014, up $2.3 million, or 6%, from the first quarter of 2014. The increase reflects a lower level of miscellaneous expense items in the first quarter.
4
Hancock reports second quarter 2014 financial results
July 24, 2014
The effective income tax rate for the second quarter of 2014 was 31%, up from 27% in the first quarter of 2014. The increase in the tax rate was related, in part, to the tax impact from the gain
on the divestiture of selected insurance business lines early in the second quarter of 2014. Management expects the effective income tax rate to approximate 27% for the remainder of 2014. 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 at June 30, 2014 totaled $2.5 billion. The tangible common equity (TCE) ratio was 9.29%, up 5 bps from March 31,
2014. Final settlement of the accelerated share repurchase (ASR) transaction was completed in early May 2014, with approximately 590,000 shares received. As a result of Hancocks continued strong capital position, the Board of Directors
authorized a new common stock buyback program in July for up to 5%, or approximately 4 million shares, of the companys common stock. The shares may be repurchased in the open market or in privately negotiated transactions from time to
time, depending upon market conditions and other factors, and in accordance with applicable regulations of the Securities and Exchange Commission. The buyback authorization will expire December 31, 2015. 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, July 25, 2014 to review the results. A live
listen-only webcast of the call will be available under the Investor Relations section of Hancocks website at www.hancockbank.com. Additional financial tables and a slide presentation related to second quarter results are 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 July 31, 2014 by dialing (855) 859-2056 or (404) 537-3406, passcode 69488929.
About Hancock
Holding Company
Hancock Holding Company is a financial services company with regional business headquarters and locations throughout a growing Gulf
South corridor. The companys banking subsidiary provides a comprehensive network of full-service financial choices through Hancock Bank locations in Mississippi, Alabama, and Florida and Whitney Bank offices in Louisiana and Texas, including
traditional and online banking; commercial and small business banking; energy banking; private banking; trust and investment services; certain insurance services; mortgage services; and consumer financing. More information and online banking are
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.
5
Hancock reports second quarter 2014 financial results
July 24, 2014
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 noninterest
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, details of the
common stock buyback, possible repurchases of shares under stock buyback programs, and the financial impact of regulatory requirements. Hancocks 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 Hancocks forward-looking statements include, but are not limited to,
those risk factors outlined in Hancocks public filings with the Securities and Exchange Commission, which are available at the SECs 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.
6
HANCOCK HOLDING COMPANY
FINANCIAL HIGHLIGHTS
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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(amounts in thousands, except per share data) |
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6/30/2014 |
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3/31/2014 |
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6/30/2013 |
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6/30/2014 |
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6/30/2013 |
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INCOME STATEMENT DATA |
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Net interest income |
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$ |
164,778 |
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$ |
165,562 |
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$ |
169,179 |
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$ |
330,340 |
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$ |
343,194 |
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Net interest income (TE) (a) |
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167,332 |
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168,198 |
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171,822 |
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335,530 |
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348,563 |
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Provision for loan losses |
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6,691 |
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7,963 |
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8,257 |
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14,654 |
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17,835 |
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Noninterest income excluding securities transactions |
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56,398 |
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56,699 |
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63,897 |
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113,097 |
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124,084 |
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Securities transactions gains |
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Noninterest expense (excluding nonoperating expense items) |
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144,727 |
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146,982 |
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162,250 |
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291,709 |
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321,852 |
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Nonoperating expense items |
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12,131 |
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12,131 |
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Net income |
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39,962 |
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49,115 |
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46,862 |
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89,077 |
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95,438 |
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Operating income (b) |
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49,575 |
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49,115 |
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46,862 |
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98,690 |
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95,438 |
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PERIOD-END BALANCE SHEET DATA |
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Loans |
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$ |
12,884,056 |
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$ |
12,527,937 |
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$ |
11,681,497 |
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$ |
12,884,056 |
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$ |
11,681,497 |
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Investment securities |
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3,677,229 |
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3,797,883 |
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4,303,918 |
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3,677,229 |
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4,303,918 |
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Earning assets |
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17,023,990 |
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16,622,104 |
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16,448,565 |
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17,023,990 |
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16,448,565 |
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Total assets |
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19,349,431 |
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19,004,170 |
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18,934,301 |
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19,349,431 |
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18,934,301 |
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Noninterest-bearing deposits |
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5,723,663 |
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5,613,872 |
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5,340,177 |
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5,723,663 |
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5,340,177 |
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Total deposits |
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15,245,227 |
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15,274,774 |
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15,155,938 |
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15,245,227 |
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15,155,938 |
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Common shareholders equity |
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2,492,582 |
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2,462,534 |
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2,345,340 |
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2,492,582 |
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2,345,340 |
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AVERAGE BALANCE SHEET DATA |
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Loans |
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$ |
12,680,861 |
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$ |
12,379,316 |
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$ |
11,594,920 |
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$ |
12,530,922 |
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$ |
11,544,150 |
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Investment securities |
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3,716,563 |
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3,935,616 |
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4,423,441 |
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3,825,484 |
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4,177,713 |
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Earning assets |
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16,791,744 |
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16,740,353 |
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16,500,215 |
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16,766,191 |
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16,508,910 |
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Total assets |
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19,039,264 |
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19,055,107 |
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19,022,832 |
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19,047,142 |
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19,087,383 |
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Noninterest-bearing deposits |
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5,505,735 |
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5,499,993 |
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5,346,916 |
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5,502,878 |
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5,330,871 |
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Total deposits |
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15,060,581 |
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15,269,143 |
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15,211,363 |
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15,164,285 |
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15,261,746 |
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Common shareholders equity |
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2,463,385 |
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2,435,980 |
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2,405,069 |
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2,449,758 |
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2,426,420 |
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COMMON SHARE DATA |
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Earnings per share - diluted |
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$ |
0.48 |
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$ |
0.58 |
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$ |
0.55 |
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$ |
1.06 |
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$ |
1.11 |
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Operating earnings per share - diluted (b) |
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0.59 |
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0.58 |
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0.55 |
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1.17 |
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1.11 |
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Cash dividends per share |
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$ |
0.24 |
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$ |
0.24 |
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$ |
0.24 |
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$ |
0.48 |
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$ |
0.48 |
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Book value per share (period-end) |
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$ |
30.45 |
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$ |
29.93 |
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$ |
28.57 |
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$ |
30.45 |
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$ |
28.57 |
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Tangible book value per share (period-end) |
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21.08 |
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20.47 |
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18.83 |
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21.08 |
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18.83 |
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Weighted average number of shares - diluted |
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82,174 |
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|
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82,534 |
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|
|
83,357 |
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|
|
82,348 |
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|
|
84,153 |
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Market data |
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High sales price |
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$ |
37.86 |
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$ |
38.50 |
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$ |
30.93 |
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$ |
38.50 |
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$ |
33.59 |
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Low sales price |
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32.02 |
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|
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32.66 |
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|
|
25.00 |
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|
|
32.02 |
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|
25.00 |
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Period-end closing price |
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35.32 |
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|
|
36.65 |
|
|
|
30.07 |
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|
|
35.32 |
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|
|
30.07 |
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Trading volume |
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27,432 |
|
|
|
31,328 |
|
|
|
38,599 |
|
|
|
58,760 |
|
|
|
68,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.84 |
% |
|
|
1.05 |
% |
|
|
0.99 |
% |
|
|
0.94 |
% |
|
|
1.01 |
% |
Return on average assets (operating) (b) |
|
|
1.04 |
% |
|
|
1.05 |
% |
|
|
0.99 |
% |
|
|
1.04 |
% |
|
|
1.01 |
% |
Return on average common equity |
|
|
6.51 |
% |
|
|
8.18 |
% |
|
|
7.82 |
% |
|
|
7.33 |
% |
|
|
7.93 |
% |
Return on average common equity (operating) (b) |
|
|
8.07 |
% |
|
|
8.18 |
% |
|
|
7.82 |
% |
|
|
8.12 |
% |
|
|
7.93 |
% |
Return on average tangible common equity |
|
|
9.47 |
% |
|
|
12.04 |
% |
|
|
11.74 |
% |
|
|
10.73 |
% |
|
|
11.89 |
% |
Return on average tangible common equity (operating) (b) |
|
|
11.75 |
% |
|
|
12.04 |
% |
|
|
11.74 |
% |
|
|
11.89 |
% |
|
|
11.89 |
% |
Tangible common equity ratio (c) |
|
|
9.29 |
% |
|
|
9.24 |
% |
|
|
8.52 |
% |
|
|
9.29 |
% |
|
|
8.52 |
% |
Net interest margin (TE) (a) |
|
|
3.99 |
% |
|
|
4.06 |
% |
|
|
4.17 |
% |
|
|
4.03 |
% |
|
|
4.24 |
% |
Average loan/deposit ratio |
|
|
84.20 |
% |
|
|
81.20 |
% |
|
|
76.41 |
% |
|
|
82.63 |
% |
|
|
75.86 |
% |
Efficiency ratio (d) |
|
|
61.67 |
% |
|
|
62.23 |
% |
|
|
65.68 |
% |
|
|
61.95 |
% |
|
|
64.92 |
% |
Allowance for loan losses as a percent of period-end loans |
|
|
1.00 |
% |
|
|
1.02 |
% |
|
|
1.18 |
% |
|
|
1.00 |
% |
|
|
1.18 |
% |
Annualized net charge-offs to average loans |
|
|
0.13 |
% |
|
|
0.13 |
% |
|
|
0.24 |
% |
|
|
0.13 |
% |
|
|
0.24 |
% |
Allowance for loan losses to non-performing loans + accruing loans 90 days past due |
|
|
126.26 |
% |
|
|
112.64 |
% |
|
|
91.43 |
% |
|
|
126.26 |
% |
|
|
91.43 |
% |
Noninterest income excluding securities transactions as a percent of total revenue (TE) (a) |
|
|
25.21 |
% |
|
|
25.21 |
% |
|
|
27.11 |
% |
|
|
25.21 |
% |
|
|
26.25 |
% |
(a) |
Tax-equivalent (TE) amounts are calculated using a federal income tax rate of 35%. |
(b) |
Operating income excludes tax-effected securities transactions and nonoperating expense items. Management believes that operating income provides a useful measure of financial performance that helps investors compare
the Companys fundamental operations over time. |
(c) |
The tangible common equity ratio is common shareholders equity less intangible assets divided by total assets less intangible assets. |
(d) |
The efficiency ratio is noninterest expense to total net interest (TE) and noninterest income excluding amortization of purchased intangibles, nonoperating expense items, and securities transactions. |
7
HANCOCK HOLDING COMPANY
QUARTERLY HIGHLIGHTS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
(amounts in thousands, except per share data) |
|
6/30/2014 |
|
|
3/31/2014 |
|
|
12/31/2013 |
|
|
9/30/2013 |
|
|
6/30/2013 |
|
INCOME STATEMENT DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
164,778 |
|
|
$ |
165,562 |
|
|
$ |
166,007 |
|
|
$ |
171,530 |
|
|
$ |
169,179 |
|
Net interest income (TE) (a) |
|
|
167,332 |
|
|
|
168,198 |
|
|
|
168,466 |
|
|
|
174,112 |
|
|
|
171,822 |
|
Provision for loan losses |
|
|
6,691 |
|
|
|
7,963 |
|
|
|
7,331 |
|
|
|
7,569 |
|
|
|
8,257 |
|
Noninterest income excluding securities transactions |
|
|
56,398 |
|
|
|
56,699 |
|
|
|
58,894 |
|
|
|
63,057 |
|
|
|
63,897 |
|
Securities transactions gains |
|
|
|
|
|
|
|
|
|
|
105 |
|
|
|
|
|
|
|
|
|
Noninterest expense (excluding nonoperating expense items) |
|
|
144,727 |
|
|
|
146,982 |
|
|
|
157,097 |
|
|
|
161,318 |
|
|
|
162,250 |
|
Nonoperating expense items |
|
|
12,131 |
|
|
|
|
|
|
|
17,116 |
|
|
|
20,887 |
|
|
|
|
|
Net income |
|
|
39,962 |
|
|
|
49,115 |
|
|
|
34,716 |
|
|
|
33,202 |
|
|
|
46,862 |
|
Operating income (b) |
|
|
49,575 |
|
|
|
49,115 |
|
|
|
45,773 |
|
|
|
46,779 |
|
|
|
46,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERIOD-END BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
12,884,056 |
|
|
$ |
12,527,937 |
|
|
$ |
12,324,817 |
|
|
$ |
11,734,472 |
|
|
$ |
11,681,497 |
|
Investment securities |
|
|
3,677,229 |
|
|
|
3,797,883 |
|
|
|
4,033,124 |
|
|
|
4,124,202 |
|
|
|
4,303,918 |
|
Earning assets |
|
|
17,023,990 |
|
|
|
16,622,104 |
|
|
|
16,651,295 |
|
|
|
16,339,431 |
|
|
|
16,448,565 |
|
Total assets |
|
|
19,349,431 |
|
|
|
19,004,170 |
|
|
|
19,009,251 |
|
|
|
18,801,846 |
|
|
|
18,934,301 |
|
Noninterest-bearing deposits |
|
|
5,723,663 |
|
|
|
5,613,872 |
|
|
|
5,530,253 |
|
|
|
5,479,696 |
|
|
|
5,340,177 |
|
Total deposits |
|
|
15,245,227 |
|
|
|
15,274,774 |
|
|
|
15,360,516 |
|
|
|
15,054,871 |
|
|
|
15,155,938 |
|
Common shareholders equity |
|
|
2,492,582 |
|
|
|
2,462,534 |
|
|
|
2,425,069 |
|
|
|
2,356,442 |
|
|
|
2,345,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
12,680,861 |
|
|
$ |
12,379,316 |
|
|
$ |
11,903,603 |
|
|
$ |
11,805,330 |
|
|
$ |
11,594,920 |
|
Investment securities |
|
|
3,716,563 |
|
|
|
3,935,616 |
|
|
|
4,070,657 |
|
|
|
4,135,348 |
|
|
|
4,423,441 |
|
Earning assets |
|
|
16,791,744 |
|
|
|
16,740,353 |
|
|
|
16,376,587 |
|
|
|
16,384,635 |
|
|
|
16,500,215 |
|
Total assets |
|
|
19,039,264 |
|
|
|
19,055,107 |
|
|
|
18,739,091 |
|
|
|
18,796,027 |
|
|
|
19,022,832 |
|
Noninterest-bearing deposits |
|
|
5,505,735 |
|
|
|
5,499,993 |
|
|
|
5,483,918 |
|
|
|
5,415,303 |
|
|
|
5,346,916 |
|
Total deposits |
|
|
15,060,581 |
|
|
|
15,269,143 |
|
|
|
14,915,677 |
|
|
|
15,021,685 |
|
|
|
15,211,363 |
|
Common shareholders equity |
|
|
2,463,385 |
|
|
|
2,435,980 |
|
|
|
2,355,768 |
|
|
|
2,338,945 |
|
|
|
2,405,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted |
|
$ |
0.48 |
|
|
$ |
0.58 |
|
|
$ |
0.41 |
|
|
$ |
0.40 |
|
|
$ |
0.55 |
|
Operating earnings per share - diluted (b) |
|
|
0.59 |
|
|
|
0.58 |
|
|
|
0.55 |
|
|
|
0.56 |
|
|
|
0.55 |
|
Cash dividends per share |
|
$ |
0.24 |
|
|
$ |
0.24 |
|
|
$ |
0.24 |
|
|
$ |
0.24 |
|
|
$ |
0.24 |
|
Book value per share (period-end) |
|
$ |
30.45 |
|
|
$ |
29.93 |
|
|
$ |
29.49 |
|
|
$ |
28.70 |
|
|
$ |
28.57 |
|
Tangible book value per share (period-end) |
|
|
21.08 |
|
|
|
20.47 |
|
|
|
19.94 |
|
|
|
19.04 |
|
|
|
18.83 |
|
Weighted average number of shares - diluted |
|
|
82,174 |
|
|
|
82,534 |
|
|
|
82,220 |
|
|
|
82,205 |
|
|
|
83,357 |
|
Market data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High sales price |
|
$ |
37.86 |
|
|
$ |
38.50 |
|
|
$ |
37.12 |
|
|
$ |
33.85 |
|
|
$ |
30.93 |
|
Low sales price |
|
|
32.02 |
|
|
|
32.66 |
|
|
|
30.09 |
|
|
|
29.00 |
|
|
|
25.00 |
|
Period-end closing price |
|
|
35.32 |
|
|
|
36.65 |
|
|
|
36.68 |
|
|
|
31.38 |
|
|
|
30.07 |
|
Trading volume |
|
|
27,432 |
|
|
|
31,328 |
|
|
|
27,816 |
|
|
|
29,711 |
|
|
|
38,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.84 |
% |
|
|
1.05 |
% |
|
|
0.74 |
% |
|
|
0.70 |
% |
|
|
0.99 |
% |
Return on average assets (operating) (b) |
|
|
1.04 |
% |
|
|
1.05 |
% |
|
|
0.97 |
% |
|
|
0.99 |
% |
|
|
0.99 |
% |
Return on average common equity |
|
|
6.51 |
% |
|
|
8.18 |
% |
|
|
5.85 |
% |
|
|
5.63 |
% |
|
|
7.82 |
% |
Return on average common equity (operating) (b) |
|
|
8.07 |
% |
|
|
8.18 |
% |
|
|
7.71 |
% |
|
|
7.93 |
% |
|
|
7.82 |
% |
Return on average tangible common equity |
|
|
9.47 |
% |
|
|
12.04 |
% |
|
|
8.79 |
% |
|
|
8.54 |
% |
|
|
11.74 |
% |
Return on average tangible common equity (operating) (b) |
|
|
11.75 |
% |
|
|
12.04 |
% |
|
|
11.59 |
% |
|
|
12.03 |
% |
|
|
11.74 |
% |
Tangible common equity ratio (c) |
|
|
9.29 |
% |
|
|
9.24 |
% |
|
|
9.00 |
% |
|
|
8.68 |
% |
|
|
8.52 |
% |
Net interest margin (TE) (a) |
|
|
3.99 |
% |
|
|
4.06 |
% |
|
|
4.09 |
% |
|
|
4.23 |
% |
|
|
4.17 |
% |
Average loan/deposit ratio |
|
|
84.20 |
% |
|
|
81.20 |
% |
|
|
79.93 |
% |
|
|
78.70 |
% |
|
|
76.41 |
% |
Efficiency ratio (d) |
|
|
61.67 |
% |
|
|
62.23 |
% |
|
|
65.94 |
% |
|
|
64.95 |
% |
|
|
65.68 |
% |
Allowance for loan losses as a percent of period-end loans |
|
|
1.00 |
% |
|
|
1.02 |
% |
|
|
1.08 |
% |
|
|
1.18 |
% |
|
|
1.18 |
% |
Annualized net charge-offs to average loans |
|
|
0.13 |
% |
|
|
0.13 |
% |
|
|
0.17 |
% |
|
|
0.18 |
% |
|
|
0.24 |
% |
Allowance for loan losses to non-performing loans + accruing loans 90 days past due |
|
|
126.26 |
% |
|
|
112.64 |
% |
|
|
111.97 |
% |
|
|
94.69 |
% |
|
|
91.43 |
% |
Noninterest income excluding securities transactions as a percent of total revenue (TE) (a) |
|
|
25.21 |
% |
|
|
25.21 |
% |
|
|
25.90 |
% |
|
|
26.59 |
% |
|
|
27.11 |
% |
(a) |
Tax-equivalent (TE) amounts are calculated using a federal income tax rate of 35%. |
(b) |
Operating income excludes tax-effected securities transactions and nonoperating expense items. Management believes that operating income provides a useful measure of financial performance that helps investors compare
the Companys fundamental operations over time. |
(c) |
The tangible common equity ratio is common shareholders equity less intangible assets divided by total assets less intangible assets. |
(d) |
The efficiency ratio is noninterest expense to total net interest (TE) and noninterest income excluding amortization of purchased intangibles, nonoperating expense items, and securities transactions. |
8
HANCOCK HOLDING COMPANY
INCOME STATEMENT
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(dollars in thousands, except per share data) |
|
6/30/2014 |
|
|
3/31/2014 |
|
|
6/30/2013 |
|
|
6/30/2014 |
|
|
6/30/2013 |
|
NET INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
174,001 |
|
|
$ |
175,140 |
|
|
$ |
179,649 |
|
|
$ |
349,141 |
|
|
$ |
364,921 |
|
Interest income (TE) |
|
|
176,555 |
|
|
|
177,776 |
|
|
|
182,292 |
|
|
|
354,331 |
|
|
|
370,290 |
|
Interest expense |
|
|
9,223 |
|
|
|
9,578 |
|
|
|
10,470 |
|
|
|
18,801 |
|
|
|
21,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (TE) |
|
|
167,332 |
|
|
|
168,198 |
|
|
|
171,822 |
|
|
|
335,530 |
|
|
|
348,563 |
|
Provision for loan losses |
|
|
6,691 |
|
|
|
7,963 |
|
|
|
8,257 |
|
|
|
14,654 |
|
|
|
17,835 |
|
Noninterest income excluding securities transactions |
|
|
56,398 |
|
|
|
56,699 |
|
|
|
63,897 |
|
|
|
113,097 |
|
|
|
124,084 |
|
Securities transactions gains |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
|
156,858 |
|
|
|
146,982 |
|
|
|
162,250 |
|
|
|
303,840 |
|
|
|
321,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
57,627 |
|
|
|
67,316 |
|
|
|
62,569 |
|
|
|
124,943 |
|
|
|
127,591 |
|
Income tax expense |
|
|
17,665 |
|
|
|
18,201 |
|
|
|
15,707 |
|
|
|
35,866 |
|
|
|
32,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
39,962 |
|
|
$ |
49,115 |
|
|
$ |
46,862 |
|
|
$ |
89,077 |
|
|
$ |
95,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS FROM NET TO OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities transactions gains |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating expense items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of insurance business lines divestiture |
|
|
(9,101 |
) |
|
|
|
|
|
|
|
|
|
|
(9,101 |
) |
|
|
|
|
FDIC settlement |
|
|
10,268 |
|
|
|
|
|
|
|
|
|
|
|
10,268 |
|
|
|
|
|
Expense and efficiency initiatives and other items |
|
|
7,503 |
|
|
|
|
|
|
|
|
|
|
|
7,503 |
|
|
|
|
|
Early debt redemption |
|
|
3,461 |
|
|
|
|
|
|
|
|
|
|
|
3,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonoperating expense items |
|
|
12,131 |
|
|
|
|
|
|
|
|
|
|
|
12,131 |
|
|
|
|
|
Taxes on adjustments at marginal tax rate |
|
|
2,518 |
|
|
|
|
|
|
|
|
|
|
|
2,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments (net of taxes) |
|
|
9,613 |
|
|
|
|
|
|
|
|
|
|
|
9,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (e) |
|
$ |
49,575 |
|
|
$ |
49,115 |
|
|
$ |
46,862 |
|
|
$ |
98,690 |
|
|
$ |
95,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME AND NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
$ |
19,269 |
|
|
$ |
18,712 |
|
|
$ |
19,864 |
|
|
$ |
37,981 |
|
|
$ |
38,879 |
|
Trust fees |
|
|
11,499 |
|
|
|
10,238 |
|
|
|
9,803 |
|
|
|
21,737 |
|
|
|
18,495 |
|
Bank card and ATM fees |
|
|
11,596 |
|
|
|
10,569 |
|
|
|
11,399 |
|
|
|
22,165 |
|
|
|
22,457 |
|
Investment & annuity fees |
|
|
5,097 |
|
|
|
4,952 |
|
|
|
5,192 |
|
|
|
10,049 |
|
|
|
9,769 |
|
Secondary mortgage market operations |
|
|
1,758 |
|
|
|
1,965 |
|
|
|
4,139 |
|
|
|
3,723 |
|
|
|
8,522 |
|
Insurance fees |
|
|
1,888 |
|
|
|
3,744 |
|
|
|
4,845 |
|
|
|
5,632 |
|
|
|
8,839 |
|
Amortization of FDIC loss share receivable |
|
|
(3,321 |
) |
|
|
(3,908 |
) |
|
|
|
|
|
|
(7,229 |
) |
|
|
|
|
Other income |
|
|
8,612 |
|
|
|
10,427 |
|
|
|
8,655 |
|
|
|
19,039 |
|
|
|
17,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income excluding securities transactions |
|
|
56,398 |
|
|
|
56,699 |
|
|
|
63,897 |
|
|
|
113,097 |
|
|
|
124,084 |
|
Securities transactions gains |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income including securities transactions |
|
$ |
56,398 |
|
|
$ |
56,699 |
|
|
$ |
63,897 |
|
|
$ |
113,097 |
|
|
$ |
124,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expense |
|
$ |
79,506 |
|
|
$ |
81,432 |
|
|
$ |
87,595 |
|
|
$ |
160,938 |
|
|
$ |
175,522 |
|
Occupancy expense (net) |
|
|
10,840 |
|
|
|
11,266 |
|
|
|
12,404 |
|
|
|
22,106 |
|
|
|
24,730 |
|
Equipment expense |
|
|
4,059 |
|
|
|
4,274 |
|
|
|
4,919 |
|
|
|
8,333 |
|
|
|
10,220 |
|
Other real estate owned expense (net) |
|
|
84 |
|
|
|
1,777 |
|
|
|
3,355 |
|
|
|
1,861 |
|
|
|
4,063 |
|
Other operating expense |
|
|
43,494 |
|
|
|
41,195 |
|
|
|
46,546 |
|
|
|
84,689 |
|
|
|
92,331 |
|
Amortization of intangibles |
|
|
6,744 |
|
|
|
7,038 |
|
|
|
7,431 |
|
|
|
13,782 |
|
|
|
14,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expense |
|
|
144,727 |
|
|
|
146,982 |
|
|
|
162,250 |
|
|
|
291,709 |
|
|
|
321,852 |
|
Nonoperating expense items |
|
|
12,131 |
|
|
|
|
|
|
|
|
|
|
|
12,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
$ |
156,858 |
|
|
$ |
146,982 |
|
|
$ |
162,250 |
|
|
$ |
303,840 |
|
|
$ |
321,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.48 |
|
|
$ |
0.58 |
|
|
$ |
0.55 |
|
|
$ |
1.06 |
|
|
$ |
1.11 |
|
Diluted |
|
|
0.48 |
|
|
|
0.58 |
|
|
|
0.55 |
|
|
|
1.06 |
|
|
|
1.11 |
|
Operating earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.59 |
|
|
$ |
0.58 |
|
|
$ |
0.55 |
|
|
$ |
1.18 |
|
|
$ |
1.11 |
|
Diluted |
|
|
0.59 |
|
|
|
0.58 |
|
|
|
0.55 |
|
|
|
1.17 |
|
|
|
1.11 |
|
(e) |
Net income less tax-effected securities transactions and nonoperating expense items. Management believes that operating income provides a useful measure of financial performance that helps investors compare the
Companys fundamental operations over time. |
9
HANCOCK HOLDING COMPANY
INCOME STATEMENT
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
(dollars in thousands) |
|
6/30/2014 |
|
|
3/31/2014 |
|
|
12/31/2013 |
|
|
9/30/2013 |
|
|
6/30/2013 |
|
Interest income |
|
$ |
174,001 |
|
|
$ |
175,140 |
|
|
$ |
175,650 |
|
|
$ |
181,639 |
|
|
$ |
179,649 |
|
Interest income (TE) |
|
|
176,555 |
|
|
|
177,776 |
|
|
|
178,109 |
|
|
|
184,221 |
|
|
|
182,292 |
|
Interest expense |
|
|
9,223 |
|
|
|
9,578 |
|
|
|
9,643 |
|
|
|
10,109 |
|
|
|
10,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (TE) |
|
|
167,332 |
|
|
|
168,198 |
|
|
|
168,466 |
|
|
|
174,112 |
|
|
|
171,822 |
|
Provision for loan losses |
|
|
6,691 |
|
|
|
7,963 |
|
|
|
7,331 |
|
|
|
7,569 |
|
|
|
8,257 |
|
Noninterest income excluding securities transactions |
|
|
56,398 |
|
|
|
56,699 |
|
|
|
58,894 |
|
|
|
63,057 |
|
|
|
63,897 |
|
Securities transactions gains |
|
|
|
|
|
|
|
|
|
|
105 |
|
|
|
|
|
|
|
|
|
Noninterest expense |
|
|
156,858 |
|
|
|
146,982 |
|
|
|
174,213 |
|
|
|
182,205 |
|
|
|
162,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
57,627 |
|
|
|
67,316 |
|
|
|
43,462 |
|
|
|
44,813 |
|
|
|
62,569 |
|
Income tax expense |
|
|
17,665 |
|
|
|
18,201 |
|
|
|
8,746 |
|
|
|
11,611 |
|
|
|
15,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
39,962 |
|
|
$ |
49,115 |
|
|
$ |
34,716 |
|
|
$ |
33,202 |
|
|
$ |
46,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTMENTS FROM NET TO OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities transactions gains |
|
|
|
|
|
|
|
|
|
|
105 |
|
|
|
|
|
|
|
|
|
Total nonoperating expense items |
|
|
12,131 |
|
|
|
|
|
|
|
17,116 |
|
|
|
20,887 |
|
|
|
|
|
Taxes on adjustments at marginal tax rate |
|
|
2,518 |
|
|
|
|
|
|
|
5,954 |
|
|
|
7,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments (net of taxes) |
|
|
9,613 |
|
|
|
|
|
|
|
11,057 |
|
|
|
13,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
49,575 |
|
|
$ |
49,115 |
|
|
$ |
45,773 |
|
|
$ |
46,779 |
|
|
$ |
46,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME AND NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
$ |
19,269 |
|
|
$ |
18,712 |
|
|
$ |
19,605 |
|
|
$ |
20,519 |
|
|
$ |
19,864 |
|
Trust fees |
|
|
11,499 |
|
|
|
10,238 |
|
|
|
10,214 |
|
|
|
9,477 |
|
|
|
9,803 |
|
Bank card and ATM fees |
|
|
11,596 |
|
|
|
10,569 |
|
|
|
11,261 |
|
|
|
12,221 |
|
|
|
11,399 |
|
Investment & annuity fees |
|
|
5,097 |
|
|
|
4,952 |
|
|
|
4,619 |
|
|
|
5,186 |
|
|
|
5,192 |
|
Secondary mortgage market operations |
|
|
1,758 |
|
|
|
1,965 |
|
|
|
1,554 |
|
|
|
2,467 |
|
|
|
4,139 |
|
Insurance fees |
|
|
1,888 |
|
|
|
3,744 |
|
|
|
3,304 |
|
|
|
3,661 |
|
|
|
4,845 |
|
Amortization of loss share receivable |
|
|
(3,321 |
) |
|
|
(3,908 |
) |
|
|
(3,908 |
) |
|
|
(590 |
) |
|
|
|
|
Other income |
|
|
8,612 |
|
|
|
10,427 |
|
|
|
9,986 |
|
|
|
10,116 |
|
|
|
8,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income excluding securities transactions |
|
|
56,398 |
|
|
|
56,699 |
|
|
|
58,894 |
|
|
|
63,057 |
|
|
|
63,897 |
|
Securities transactions gains |
|
|
|
|
|
|
|
|
|
|
105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income including securities transactions |
|
$ |
56,398 |
|
|
$ |
56,699 |
|
|
$ |
58,999 |
|
|
$ |
63,057 |
|
|
$ |
63,897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expense |
|
$ |
79,506 |
|
|
$ |
81,432 |
|
|
$ |
84,912 |
|
|
$ |
86,850 |
|
|
$ |
87,595 |
|
Occupancy expense (net) |
|
|
10,840 |
|
|
|
11,266 |
|
|
|
11,613 |
|
|
|
12,369 |
|
|
|
12,404 |
|
Equipment expense |
|
|
4,059 |
|
|
|
4,274 |
|
|
|
4,679 |
|
|
|
5,120 |
|
|
|
4,919 |
|
Other real estate owned expense (net) |
|
|
84 |
|
|
|
1,777 |
|
|
|
1,535 |
|
|
|
2,439 |
|
|
|
3,355 |
|
Other operating expense |
|
|
43,494 |
|
|
|
41,195 |
|
|
|
47,180 |
|
|
|
47,234 |
|
|
|
46,546 |
|
Amortization of intangibles |
|
|
6,744 |
|
|
|
7,038 |
|
|
|
7,178 |
|
|
|
7,306 |
|
|
|
7,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expense |
|
|
144,727 |
|
|
|
146,982 |
|
|
|
157,097 |
|
|
|
161,318 |
|
|
|
162,250 |
|
Nonoperating expense items |
|
|
12,131 |
|
|
|
|
|
|
|
17,116 |
|
|
|
20,887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest expense |
|
$ |
156,858 |
|
|
$ |
146,982 |
|
|
$ |
174,213 |
|
|
$ |
182,205 |
|
|
$ |
162,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
HANCOCK HOLDING COMPANY
PERIOD-END BALANCE SHEET
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
(dollars in thousands) |
|
6/30/2014 |
|
|
3/31/2014 |
|
|
12/31/2013 |
|
|
9/30/2013 |
|
|
6/30/2013 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial non-real estate loans |
|
$ |
5,393,691 |
|
|
$ |
5,198,029 |
|
|
$ |
5,064,224 |
|
|
$ |
4,625,315 |
|
|
$ |
4,653,342 |
|
Construction and land development loans |
|
|
1,040,656 |
|
|
|
978,798 |
|
|
|
915,541 |
|
|
|
920,408 |
|
|
|
966,499 |
|
Commercial real estate loans |
|
|
3,056,263 |
|
|
|
3,069,316 |
|
|
|
3,042,841 |
|
|
|
2,914,969 |
|
|
|
2,872,254 |
|
Residential mortgage loans |
|
|
1,771,271 |
|
|
|
1,720,307 |
|
|
|
1,720,614 |
|
|
|
1,695,197 |
|
|
|
1,616,093 |
|
Consumer loans |
|
|
1,622,175 |
|
|
|
1,561,487 |
|
|
|
1,581,597 |
|
|
|
1,578,583 |
|
|
|
1,573,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
12,884,056 |
|
|
|
12,527,937 |
|
|
|
12,324,817 |
|
|
|
11,734,472 |
|
|
|
11,681,497 |
|
Loans held for sale |
|
|
22,017 |
|
|
|
15,911 |
|
|
|
24,515 |
|
|
|
18,444 |
|
|
|
20,233 |
|
Securities |
|
|
3,677,229 |
|
|
|
3,797,883 |
|
|
|
4,033,124 |
|
|
|
4,124,202 |
|
|
|
4,303,918 |
|
Short-term investments |
|
|
440,688 |
|
|
|
280,373 |
|
|
|
268,839 |
|
|
|
462,313 |
|
|
|
442,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets |
|
|
17,023,990 |
|
|
|
16,622,104 |
|
|
|
16,651,295 |
|
|
|
16,339,431 |
|
|
|
16,448,565 |
|
Allowance for loan losses |
|
|
(128,672 |
) |
|
|
(128,248 |
) |
|
|
(133,626 |
) |
|
|
(138,223 |
) |
|
|
(137,969 |
) |
Goodwill |
|
|
621,193 |
|
|
|
625,675 |
|
|
|
625,675 |
|
|
|
625,675 |
|
|
|
625,675 |
|
Other intangible assets, net |
|
|
145,825 |
|
|
|
152,734 |
|
|
|
159,773 |
|
|
|
167,116 |
|
|
|
174,423 |
|
Other assets |
|
|
1,687,095 |
|
|
|
1,731,905 |
|
|
|
1,706,134 |
|
|
|
1,807,847 |
|
|
|
1,823,607 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
19,349,431 |
|
|
$ |
19,004,170 |
|
|
$ |
19,009,251 |
|
|
$ |
18,801,846 |
|
|
$ |
18,934,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
5,723,663 |
|
|
$ |
5,613,872 |
|
|
$ |
5,530,253 |
|
|
$ |
5,479,696 |
|
|
$ |
5,340,177 |
|
Interest-bearing transaction and savings deposits |
|
|
6,079,837 |
|
|
|
6,118,150 |
|
|
|
6,162,959 |
|
|
|
6,008,042 |
|
|
|
5,965,372 |
|
Interest-bearing public fund deposits |
|
|
1,484,188 |
|
|
|
1,451,430 |
|
|
|
1,571,532 |
|
|
|
1,240,336 |
|
|
|
1,410,866 |
|
Time deposits |
|
|
1,957,539 |
|
|
|
2,091,322 |
|
|
|
2,095,772 |
|
|
|
2,326,797 |
|
|
|
2,439,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
|
9,521,564 |
|
|
|
9,660,902 |
|
|
|
9,830,263 |
|
|
|
9,575,175 |
|
|
|
9,815,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
|
15,245,227 |
|
|
|
15,274,774 |
|
|
|
15,360,516 |
|
|
|
15,054,871 |
|
|
|
15,155,938 |
|
Short-term borrowings |
|
|
1,063,664 |
|
|
|
712,634 |
|
|
|
657,960 |
|
|
|
782,779 |
|
|
|
828,107 |
|
Long-term debt |
|
|
374,991 |
|
|
|
380,001 |
|
|
|
385,826 |
|
|
|
376,664 |
|
|
|
385,122 |
|
Other liabilities |
|
|
172,967 |
|
|
|
174,227 |
|
|
|
179,880 |
|
|
|
231,090 |
|
|
|
219,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
16,856,849 |
|
|
|
16,541,636 |
|
|
|
16,584,182 |
|
|
|
16,445,404 |
|
|
|
16,588,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMON SHAREHOLDERS EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock and capital surplus |
|
|
1,838,931 |
|
|
|
1,837,461 |
|
|
|
1,832,282 |
|
|
|
1,827,551 |
|
|
|
1,823,469 |
|
Retained earnings |
|
|
676,942 |
|
|
|
657,062 |
|
|
|
628,166 |
|
|
|
613,662 |
|
|
|
600,566 |
|
Accumulated other comprehensive income |
|
|
(23,291 |
) |
|
|
(31,989 |
) |
|
|
(35,379 |
) |
|
|
(84,771 |
) |
|
|
(78,695 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shareholders equity |
|
|
2,492,582 |
|
|
|
2,462,534 |
|
|
|
2,425,069 |
|
|
|
2,356,442 |
|
|
|
2,345,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities & shareholders equity |
|
$ |
19,349,431 |
|
|
$ |
19,004,170 |
|
|
$ |
19,009,251 |
|
|
$ |
18,801,846 |
|
|
$ |
18,934,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity |
|
$ |
1,725,489 |
|
|
$ |
1,684,037 |
|
|
$ |
1,639,524 |
|
|
$ |
1,563,542 |
|
|
$ |
1,545,122 |
|
Tier 1 capital (f) |
|
|
1,758,179 |
|
|
|
1,725,947 |
|
|
|
1,685,058 |
|
|
|
1,656,497 |
|
|
|
1,632,874 |
|
Common equity (period-end) as a percent of total assets (period-end) |
|
|
12.88 |
% |
|
|
12.96 |
% |
|
|
12.76 |
% |
|
|
12.53 |
% |
|
|
12.39 |
% |
Tangible common equity ratio |
|
|
9.29 |
% |
|
|
9.24 |
% |
|
|
9.00 |
% |
|
|
8.68 |
% |
|
|
8.52 |
% |
Leverage (Tier 1) ratio (f) |
|
|
9.61 |
% |
|
|
9.43 |
% |
|
|
9.34 |
% |
|
|
9.10 |
% |
|
|
8.96 |
% |
Tier 1 risk-based capital ratio (f) |
|
|
11.93 |
% |
|
|
11.90 |
% |
|
|
11.76 |
% |
|
|
12.07 |
% |
|
|
12.00 |
% |
Total risk-based capital ratio (f) |
|
|
13.07 |
% |
|
|
13.20 |
% |
|
|
13.11 |
% |
|
|
13.52 |
% |
|
|
13.45 |
% |
(f) |
Estimated for most recent period-end. |
11
HANCOCK HOLDING COMPANY
AVERAGE BALANCE SHEET
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(dollars in thousands) |
|
6/30/2014 |
|
|
3/31/2014 |
|
|
6/30/2013 |
|
|
6/30/2014 |
|
|
6/30/2013 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial non-real estate loans |
|
$ |
5,298,978 |
|
|
$ |
5,088,061 |
|
|
$ |
4,536,711 |
|
|
$ |
5,194,102 |
|
|
$ |
4,473,906 |
|
Construction and land development loans |
|
|
1,005,025 |
|
|
|
953,328 |
|
|
|
984,449 |
|
|
|
979,320 |
|
|
|
979,900 |
|
Commercial real estate loans |
|
|
3,051,193 |
|
|
|
3,054,217 |
|
|
|
2,894,432 |
|
|
|
3,052,697 |
|
|
|
2,894,988 |
|
Residential mortgage loans |
|
|
1,744,313 |
|
|
|
1,720,640 |
|
|
|
1,599,931 |
|
|
|
1,732,542 |
|
|
|
1,596,320 |
|
Consumer loans |
|
|
1,581,352 |
|
|
|
1,563,070 |
|
|
|
1,579,397 |
|
|
|
1,572,261 |
|
|
|
1,599,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
12,680,861 |
|
|
|
12,379,316 |
|
|
|
11,594,920 |
|
|
|
12,530,922 |
|
|
|
11,544,150 |
|
Loans held for sale |
|
|
14,681 |
|
|
|
19,207 |
|
|
|
28,289 |
|
|
|
16,932 |
|
|
|
32,676 |
|
Securities (g) |
|
|
3,716,563 |
|
|
|
3,935,616 |
|
|
|
4,423,441 |
|
|
|
3,825,484 |
|
|
|
4,177,713 |
|
Short-term investments |
|
|
379,639 |
|
|
|
406,214 |
|
|
|
453,565 |
|
|
|
392,853 |
|
|
|
754,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets |
|
|
16,791,744 |
|
|
|
16,740,353 |
|
|
|
16,500,215 |
|
|
|
16,766,191 |
|
|
|
16,508,910 |
|
Allowance for loan losses |
|
|
(126,887 |
) |
|
|
(134,670 |
) |
|
|
(137,815 |
) |
|
|
(130,757 |
) |
|
|
(137,465 |
) |
Goodwill and other intangible assets |
|
|
770,294 |
|
|
|
781,434 |
|
|
|
803,679 |
|
|
|
775,833 |
|
|
|
807,425 |
|
Other assets |
|
|
1,604,113 |
|
|
|
1,667,990 |
|
|
|
1,856,753 |
|
|
|
1,635,875 |
|
|
|
1,908,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
19,039,264 |
|
|
$ |
19,055,107 |
|
|
$ |
19,022,832 |
|
|
$ |
19,047,142 |
|
|
$ |
19,087,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
5,505,735 |
|
|
$ |
5,499,993 |
|
|
$ |
5,346,916 |
|
|
$ |
5,502,878 |
|
|
$ |
5,330,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction and savings deposits |
|
|
6,078,115 |
|
|
|
6,072,113 |
|
|
|
5,965,769 |
|
|
|
6,075,131 |
|
|
|
5,974,011 |
|
Interest-bearing public fund deposits |
|
|
1,450,312 |
|
|
|
1,526,611 |
|
|
|
1,483,267 |
|
|
|
1,488,251 |
|
|
|
1,545,749 |
|
Time deposits |
|
|
2,026,419 |
|
|
|
2,170,426 |
|
|
|
2,415,411 |
|
|
|
2,098,025 |
|
|
|
2,411,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
|
9,554,846 |
|
|
|
9,769,150 |
|
|
|
9,864,447 |
|
|
|
9,661,407 |
|
|
|
9,930,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
|
|
15,060,581 |
|
|
|
15,269,143 |
|
|
|
15,211,363 |
|
|
|
15,164,285 |
|
|
|
15,261,746 |
|
Short-term borrowings |
|
|
957,386 |
|
|
|
785,063 |
|
|
|
790,103 |
|
|
|
871,701 |
|
|
|
776,973 |
|
Long-term debt |
|
|
380,151 |
|
|
|
386,026 |
|
|
|
393,641 |
|
|
|
383,073 |
|
|
|
395,020 |
|
Other liabilities |
|
|
177,761 |
|
|
|
178,895 |
|
|
|
222,656 |
|
|
|
178,325 |
|
|
|
227,224 |
|
Common shareholders equity |
|
|
2,463,385 |
|
|
|
2,435,980 |
|
|
|
2,405,069 |
|
|
|
2,449,758 |
|
|
|
2,426,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities & shareholders equity |
|
$ |
19,039,264 |
|
|
$ |
19,055,107 |
|
|
$ |
19,022,832 |
|
|
$ |
19,047,142 |
|
|
$ |
19,087,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g) |
Average securities does not include unrealized holding gains/losses on available for sale securities. |
12
HANCOCK HOLDING COMPANY
AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
6/30/2014 |
|
|
3/31/2014 |
|
|
6/30/2013 |
|
(dollars in millions) |
|
Volume |
|
|
Interest |
|
|
Rate |
|
|
Volume |
|
|
Interest |
|
|
Rate |
|
|
Volume |
|
|
Interest |
|
|
Rate |
|
AVERAGE EARNING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & real estate loans (TE) |
|
$ |
9,355.2 |
|
|
$ |
108.2 |
|
|
|
4.64 |
% |
|
$ |
9,095.7 |
|
|
$ |
107.9 |
|
|
|
4.81 |
% |
|
$ |
8,415.6 |
|
|
$ |
103.3 |
|
|
|
4.92 |
% |
Residential mortgage loans |
|
|
1,744.3 |
|
|
|
21.0 |
|
|
|
4.83 |
% |
|
|
1,720.6 |
|
|
|
21.3 |
|
|
|
4.96 |
% |
|
|
1,599.9 |
|
|
|
27.3 |
|
|
|
6.82 |
% |
Consumer loans |
|
|
1,581.4 |
|
|
|
23.6 |
|
|
|
5.99 |
% |
|
|
1,563.1 |
|
|
|
23.1 |
|
|
|
6.00 |
% |
|
|
1,579.4 |
|
|
|
26.5 |
|
|
|
6.74 |
% |
Loan fees & late charges |
|
|
|
|
|
|
0.8 |
|
|
|
0.00 |
% |
|
|
|
|
|
|
0.8 |
|
|
|
0.00 |
% |
|
|
|
|
|
|
1.2 |
|
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans (TE) |
|
|
12,680.9 |
|
|
|
153.6 |
|
|
|
4.86 |
% |
|
|
12,379.4 |
|
|
|
153.1 |
|
|
|
5.00 |
% |
|
|
11,594.9 |
|
|
|
158.3 |
|
|
|
5.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
|
|
14.7 |
|
|
|
0.1 |
|
|
|
4.14 |
% |
|
|
19.2 |
|
|
|
0.2 |
|
|
|
4.06 |
% |
|
|
28.3 |
|
|
|
0.3 |
|
|
|
3.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Treasury and government agency securities |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
0.00 |
% |
|
|
93.5 |
|
|
|
0.5 |
|
|
|
2.28 |
% |
|
|
0.1 |
|
|
|
|
|
|
|
4.66 |
% |
CMOs and mortgage backed securities |
|
|
3,490.9 |
|
|
|
20.1 |
|
|
|
2.30 |
% |
|
|
3,612.8 |
|
|
|
21.2 |
|
|
|
2.34 |
% |
|
|
4,182.3 |
|
|
|
20.7 |
|
|
|
1.98 |
% |
Municipals (TE) |
|
|
205.8 |
|
|
|
2.4 |
|
|
|
4.63 |
% |
|
|
217.0 |
|
|
|
2.5 |
|
|
|
4.56 |
% |
|
|
233.0 |
|
|
|
2.6 |
|
|
|
4.51 |
% |
Other securities |
|
|
19.8 |
|
|
|
0.1 |
|
|
|
1.19 |
% |
|
|
12.3 |
|
|
|
0.1 |
|
|
|
3.87 |
% |
|
|
8.0 |
|
|
|
0.1 |
|
|
|
2.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities (TE) (h) |
|
|
3,716.5 |
|
|
|
22.6 |
|
|
|
2.43 |
% |
|
|
3,935.6 |
|
|
|
24.3 |
|
|
|
2.47 |
% |
|
|
4,423.4 |
|
|
|
23.4 |
|
|
|
2.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total short-term investments |
|
|
379.6 |
|
|
|
0.2 |
|
|
|
0.22 |
% |
|
|
406.2 |
|
|
|
0.2 |
|
|
|
0.23 |
% |
|
|
453.6 |
|
|
|
0.3 |
|
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning assets yield (TE) |
|
$ |
16,791.7 |
|
|
|
176.5 |
|
|
|
4.21 |
% |
|
$ |
16,740.4 |
|
|
|
177.8 |
|
|
|
4.29 |
% |
|
$ |
16,500.2 |
|
|
|
182.3 |
|
|
|
4.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST-BEARING LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction and savings deposits |
|
$ |
6,078.1 |
|
|
|
1.5 |
|
|
|
0.10 |
% |
|
$ |
6,072.1 |
|
|
|
1.5 |
|
|
|
0.10 |
% |
|
$ |
5,965.8 |
|
|
|
1.5 |
|
|
|
0.10 |
% |
Time deposits |
|
|
2,026.4 |
|
|
|
3.0 |
|
|
|
0.60 |
% |
|
|
2,170.4 |
|
|
|
3.1 |
|
|
|
0.58 |
% |
|
|
2,415.4 |
|
|
|
3.8 |
|
|
|
0.63 |
% |
Public funds |
|
|
1,450.3 |
|
|
|
0.7 |
|
|
|
0.21 |
% |
|
|
1,526.6 |
|
|
|
0.8 |
|
|
|
0.20 |
% |
|
|
1,483.3 |
|
|
|
0.9 |
|
|
|
0.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
|
9,554.8 |
|
|
|
5.2 |
|
|
|
0.22 |
% |
|
|
9,769.1 |
|
|
|
5.4 |
|
|
|
0.22 |
% |
|
|
9,864.5 |
|
|
|
6.2 |
|
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
957.4 |
|
|
|
0.8 |
|
|
|
0.34 |
% |
|
|
785.1 |
|
|
|
1.0 |
|
|
|
0.54 |
% |
|
|
790.1 |
|
|
|
1.1 |
|
|
|
0.54 |
% |
Long-term debt |
|
|
380.2 |
|
|
|
3.2 |
|
|
|
3.32 |
% |
|
|
386.0 |
|
|
|
3.2 |
|
|
|
3.34 |
% |
|
|
393.6 |
|
|
|
3.2 |
|
|
|
3.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total borrowings |
|
|
1,337.6 |
|
|
|
4.0 |
|
|
|
1.19 |
% |
|
|
1,171.1 |
|
|
|
4.2 |
|
|
|
1.46 |
% |
|
|
1,183.7 |
|
|
|
4.3 |
|
|
|
1.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities cost |
|
|
10,892.4 |
|
|
|
9.2 |
|
|
|
0.34 |
% |
|
|
10,940.2 |
|
|
|
9.6 |
|
|
|
0.36 |
% |
|
|
11,048.2 |
|
|
|
10.5 |
|
|
|
0.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-free funding sources |
|
|
5,899.3 |
|
|
|
|
|
|
|
5,800.2 |
|
|
|
|
|
|
|
5,452.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of funds |
|
|
16,791.7 |
|
|
|
9.2 |
|
|
|
0.22 |
% |
|
|
16,740.4 |
|
|
|
9.6 |
|
|
|
0.23 |
% |
|
|
16,500.2 |
|
|
|
10.5 |
|
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Spread (TE) |
|
|
|
|
|
$ |
167.3 |
|
|
|
3.87 |
% |
|
|
|
|
|
$ |
168.2 |
|
|
|
3.93 |
% |
|
|
|
|
|
$ |
171.8 |
|
|
|
4.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin (TE) |
|
$ |
16,791.7 |
|
|
$ |
167.3 |
|
|
|
3.99 |
% |
|
$ |
16,740.4 |
|
|
$ |
168.2 |
|
|
|
4.06 |
% |
|
$ |
16,500.2 |
|
|
$ |
171.8 |
|
|
|
4.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(h) |
Average securities does not include unrealized holding gains/losses on available for sale securities. |
13
HANCOCK HOLDING COMPANY
AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
6/30/2014 |
|
|
6/30/2013 |
|
(dollars in millions) |
|
Volume |
|
|
Interest |
|
|
Rate |
|
|
Volume |
|
|
Interest |
|
|
Rate |
|
AVERAGE EARNING ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & real estate loans (TE) |
|
$ |
9,226.1 |
|
|
$ |
216.1 |
|
|
|
4.72 |
% |
|
$ |
8,348.8 |
|
|
$ |
216.7 |
|
|
|
5.23 |
% |
Residential mortgage loans |
|
|
1,732.5 |
|
|
|
42.4 |
|
|
|
4.89 |
% |
|
|
1,596.3 |
|
|
|
52.6 |
|
|
|
6.60 |
% |
Consumer loans |
|
|
1,572.3 |
|
|
|
46.8 |
|
|
|
6.00 |
% |
|
|
1,599.0 |
|
|
|
53.0 |
|
|
|
6.69 |
% |
Loan fees & late charges |
|
|
|
|
|
|
1.4 |
|
|
|
0.00 |
% |
|
|
|
|
|
|
1.8 |
|
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans (TE) |
|
|
12,530.9 |
|
|
|
306.7 |
|
|
|
4.93 |
% |
|
|
11,544.1 |
|
|
|
324.1 |
|
|
|
5.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
|
|
16.9 |
|
|
|
0.3 |
|
|
|
4.10 |
% |
|
|
32.7 |
|
|
|
0.6 |
|
|
|
3.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Treasury and government agency securities |
|
|
46.5 |
|
|
|
0.5 |
|
|
|
2.26 |
% |
|
|
2.8 |
|
|
|
0.0 |
|
|
|
1.29 |
% |
CMOs and mortgage backed securities |
|
|
3,551.5 |
|
|
|
41.3 |
|
|
|
2.32 |
% |
|
|
3,941.7 |
|
|
|
39.4 |
|
|
|
2.00 |
% |
Municipals (TE) |
|
|
211.4 |
|
|
|
4.9 |
|
|
|
4.59 |
% |
|
|
225.0 |
|
|
|
5.2 |
|
|
|
4.61 |
% |
Other securities |
|
|
16.1 |
|
|
|
0.2 |
|
|
|
2.22 |
% |
|
|
8.2 |
|
|
|
0.1 |
|
|
|
2.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities (TE) (h) |
|
|
3,825.5 |
|
|
|
46.9 |
|
|
|
2.45 |
% |
|
|
4,177.7 |
|
|
|
44.7 |
|
|
|
2.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total short-term investments |
|
|
392.9 |
|
|
|
0.4 |
|
|
|
0.23 |
% |
|
|
754.4 |
|
|
|
0.9 |
|
|
|
0.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning assets yield (TE) |
|
$ |
16,766.2 |
|
|
|
354.3 |
|
|
|
4.25 |
% |
|
$ |
16,508.9 |
|
|
|
370.3 |
|
|
|
4.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST-BEARING LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing transaction and savings deposits |
|
$ |
6,075.1 |
|
|
|
3.0 |
|
|
|
0.10 |
% |
|
$ |
5,974.0 |
|
|
|
3.2 |
|
|
|
0.11 |
% |
Time deposits |
|
|
2,098.0 |
|
|
|
6.1 |
|
|
|
0.59 |
% |
|
|
2,411.1 |
|
|
|
7.9 |
|
|
|
0.66 |
% |
Public funds |
|
|
1,488.3 |
|
|
|
1.5 |
|
|
|
0.20 |
% |
|
|
1,545.8 |
|
|
|
1.8 |
|
|
|
0.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing deposits |
|
|
9,661.4 |
|
|
|
10.6 |
|
|
|
0.22 |
% |
|
|
9,930.9 |
|
|
|
12.9 |
|
|
|
0.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
|
871.7 |
|
|
|
1.9 |
|
|
|
0.43 |
% |
|
|
777.0 |
|
|
|
2.4 |
|
|
|
0.62 |
% |
Long-term debt |
|
|
383.1 |
|
|
|
6.3 |
|
|
|
3.33 |
% |
|
|
395.0 |
|
|
|
6.4 |
|
|
|
3.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total borrowings |
|
|
1,254.8 |
|
|
|
8.2 |
|
|
|
1.32 |
% |
|
|
1,172.0 |
|
|
|
8.8 |
|
|
|
1.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities cost |
|
|
10,916.2 |
|
|
|
18.8 |
|
|
|
0.35 |
% |
|
|
11,102.9 |
|
|
|
21.7 |
|
|
|
0.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-free funding sources |
|
|
5,850.0 |
|
|
|
|
|
|
|
5,406.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of funds |
|
|
16,766.2 |
|
|
|
18.8 |
|
|
|
0.22 |
% |
|
|
16,508.9 |
|
|
|
21.7 |
|
|
|
0.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Spread (TE) |
|
|
$ |
335.5 |
|
|
|
3.90 |
% |
|
|
|
|
|
$ |
348.6 |
|
|
|
4.12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin (TE) |
|
$ |
16,766.2 |
|
|
$ |
335.5 |
|
|
|
4.03 |
% |
|
$ |
16,508.9 |
|
|
$ |
348.6 |
|
|
|
4.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(h) |
Average securities does not include unrealized holding gains/losses on available for sale securities. |
14
HANCOCK HOLDING COMPANY
ASSET QUALITY INFORMATION
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
(dollars in thousands) |
|
6/30/2014 |
|
|
3/31/2014 |
|
|
6/30/2013 |
|
|
6/30/2014 |
|
|
6/30/2013 |
|
Nonaccrual loans (i) |
|
$ |
89,901 |
|
|
$ |
101,400 |
|
|
$ |
132,716 |
|
|
$ |
89,901 |
|
|
$ |
132,716 |
|
Restructured loans - still accruing |
|
|
7,868 |
|
|
|
8,459 |
|
|
|
11,541 |
|
|
|
7,868 |
|
|
|
11,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans |
|
|
97,769 |
|
|
|
109,859 |
|
|
|
144,257 |
|
|
|
97,769 |
|
|
|
144,257 |
|
ORE and foreclosed assets |
|
|
59,732 |
|
|
|
69,813 |
|
|
|
72,235 |
|
|
|
59,732 |
|
|
|
72,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
$ |
157,501 |
|
|
$ |
179,672 |
|
|
$ |
216,492 |
|
|
$ |
157,501 |
|
|
$ |
216,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets as a percent of loans, ORE and foreclosed assets |
|
|
1.22 |
% |
|
|
1.43 |
% |
|
|
1.84 |
% |
|
|
1.22 |
% |
|
|
1.84 |
% |
Accruing loans 90 days past due |
|
$ |
4,142 |
|
|
$ |
3,998 |
|
|
$ |
6,647 |
|
|
$ |
4,142 |
|
|
$ |
6,647 |
|
Accruing loans 90 days past due as a percent of loans |
|
|
0.03 |
% |
|
|
0.03 |
% |
|
|
0.06 |
% |
|
|
0.03 |
% |
|
|
0.06 |
% |
Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets |
|
|
1.25 |
% |
|
|
1.46 |
% |
|
|
1.90 |
% |
|
|
1.25 |
% |
|
|
1.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR LOAN LOSSES |
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Balance |
|
$ |
128,248 |
|
|
$ |
133,626 |
|
|
$ |
137,777 |
|
|
$ |
133,626 |
|
|
$ |
136,171 |
|
Net provision for loan losses - covered loans |
|
|
(73 |
) |
|
|
(302 |
) |
|
|
362 |
|
|
|
(375 |
) |
|
|
6,963 |
|
Provision for loan losses - noncovered loans |
|
|
6,764 |
|
|
|
8,265 |
|
|
|
7,895 |
|
|
|
15,029 |
|
|
|
10,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net provision for loan losses |
|
|
6,691 |
|
|
|
7,963 |
|
|
|
8,257 |
|
|
|
14,654 |
|
|
|
17,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease) increase in FDIC loss share receivable |
|
|
(1,022 |
) |
|
|
(6,853 |
) |
|
|
993 |
|
|
|
(7,875 |
) |
|
|
2,876 |
|
Charge-offs - noncovered |
|
|
7,309 |
|
|
|
7,482 |
|
|
|
11,451 |
|
|
|
14,791 |
|
|
|
22,688 |
|
Recoveries - noncovered |
|
|
(3,245 |
) |
|
|
(3,504 |
) |
|
|
(4,419 |
) |
|
|
(6,749 |
) |
|
|
(9,023 |
) |
Net charge-offs - covered |
|
|
1,181 |
|
|
|
2,510 |
|
|
|
2,026 |
|
|
|
3,691 |
|
|
|
5,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs |
|
|
5,245 |
|
|
|
6,488 |
|
|
|
9,058 |
|
|
|
11,733 |
|
|
|
18,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance |
|
$ |
128,672 |
|
|
$ |
128,248 |
|
|
$ |
137,969 |
|
|
$ |
128,672 |
|
|
$ |
137,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses as a percent of period-end loans |
|
|
1.00 |
% |
|
|
1.02 |
% |
|
|
1.18 |
% |
|
|
1.00 |
% |
|
|
1.18 |
% |
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due |
|
|
126.26 |
% |
|
|
112.64 |
% |
|
|
91.43 |
% |
|
|
126.26 |
% |
|
|
91.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CHARGE-OFF INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs - noncovered: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial/real estate loans |
|
$ |
1,148 |
|
|
$ |
1,392 |
|
|
$ |
3,834 |
|
|
$ |
2,540 |
|
|
$ |
8,138 |
|
Residential mortgage loans |
|
|
587 |
|
|
|
147 |
|
|
|
702 |
|
|
|
734 |
|
|
|
350 |
|
Consumer loans |
|
|
2,329 |
|
|
|
2,439 |
|
|
|
2,496 |
|
|
|
4,768 |
|
|
|
5,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charge-offs - noncovered |
|
$ |
4,064 |
|
|
$ |
3,978 |
|
|
$ |
7,032 |
|
|
$ |
8,042 |
|
|
$ |
13,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs - noncovered to average loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial/real estate loans |
|
|
0.05 |
% |
|
|
0.06 |
% |
|
|
0.18 |
% |
|
|
0.06 |
% |
|
|
0.20 |
% |
Residential mortgage loans |
|
|
0.13 |
% |
|
|
0.03 |
% |
|
|
0.17 |
% |
|
|
0.09 |
% |
|
|
0.04 |
% |
Consumer loans |
|
|
0.59 |
% |
|
|
0.63 |
% |
|
|
0.63 |
% |
|
|
0.61 |
% |
|
|
0.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charge-offs - noncovered to average loans |
|
|
0.13 |
% |
|
|
0.13 |
% |
|
|
0.24 |
% |
|
|
0.13 |
% |
|
|
0.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) |
Nonaccrual loans and accruing loans past due 90 days or more do not include acquired credit-impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of
the loan. Included in nonaccrual loans are $11.5 million, $16.1 million, and $22.2 million at 06/30/14, 03/31/14 and 06/30/13, respectively, in nonaccruing restructured loans. |
15
HANCOCK HOLDING COMPANY
ASSET QUALITY INFORMATION
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
(dollars in thousands) |
|
6/30/2014 |
|
|
3/31/2014 |
|
|
12/31/2013 |
|
|
9/30/2013 |
|
|
6/30/2013 |
|
Nonaccrual loans |
|
$ |
89,901 |
|
|
$ |
101,400 |
|
|
$ |
99,711 |
|
|
$ |
119,749 |
|
|
$ |
132,716 |
|
Restructured loans - still accruing |
|
|
7,868 |
|
|
|
8,459 |
|
|
|
9,247 |
|
|
|
10,605 |
|
|
|
11,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans |
|
|
97,769 |
|
|
|
109,859 |
|
|
|
108,958 |
|
|
|
130,354 |
|
|
|
144,257 |
|
ORE and foreclosed assets |
|
|
59,732 |
|
|
|
69,813 |
|
|
|
76,979 |
|
|
|
85,560 |
|
|
|
72,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
$ |
157,501 |
|
|
$ |
179,672 |
|
|
$ |
185,937 |
|
|
$ |
215,914 |
|
|
$ |
216,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets as a percent of loans, ORE and foreclosed assets |
|
|
1.22 |
% |
|
|
1.43 |
% |
|
|
1.50 |
% |
|
|
1.83 |
% |
|
|
1.84 |
% |
Accruing loans 90 days past due |
|
$ |
4,142 |
|
|
$ |
3,998 |
|
|
$ |
10,387 |
|
|
$ |
15,620 |
|
|
$ |
6,647 |
|
Accruing loans 90 days past due as a percent of loans |
|
|
0.03 |
% |
|
|
0.03 |
% |
|
|
0.08 |
% |
|
|
0.13 |
% |
|
|
0.06 |
% |
Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets |
|
|
1.25 |
% |
|
|
1.46 |
% |
|
|
1.58 |
% |
|
|
1.96 |
% |
|
|
1.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
128,672 |
|
|
$ |
128,248 |
|
|
$ |
133,626 |
|
|
$ |
138,223 |
|
|
$ |
137,969 |
|
Allowance for loan losses as a percent of period-end loans |
|
|
1.00 |
% |
|
|
1.02 |
% |
|
|
1.08 |
% |
|
|
1.18 |
% |
|
|
1.18 |
% |
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due |
|
|
126.26 |
% |
|
|
112.64 |
% |
|
|
111.97 |
% |
|
|
94.69 |
% |
|
|
91.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan losses |
|
$ |
6,691 |
|
|
$ |
7,963 |
|
|
$ |
7,331 |
|
|
$ |
7,569 |
|
|
$ |
8,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET CHARGE-OFF INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs - noncovered: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial/real estate loans |
|
$ |
1,148 |
|
|
$ |
1,392 |
|
|
$ |
2,183 |
|
|
$ |
1,267 |
|
|
$ |
3,834 |
|
Residential mortgage loans |
|
|
587 |
|
|
|
147 |
|
|
|
(197 |
) |
|
|
541 |
|
|
|
702 |
|
Consumer loans |
|
|
2,329 |
|
|
|
2,439 |
|
|
|
3,230 |
|
|
|
3,622 |
|
|
|
2,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charge-offs - noncovered |
|
$ |
4,064 |
|
|
$ |
3,978 |
|
|
$ |
5,216 |
|
|
$ |
5,430 |
|
|
$ |
7,032 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs - noncovered to average loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial/real estate loans |
|
|
0.05 |
% |
|
|
0.06 |
% |
|
|
0.10 |
% |
|
|
0.06 |
% |
|
|
0.18 |
% |
Residential mortgage loans |
|
|
0.13 |
% |
|
|
0.03 |
% |
|
|
(0.05 |
)% |
|
|
0.13 |
% |
|
|
0.17 |
% |
Consumer loans |
|
|
0.59 |
% |
|
|
0.63 |
% |
|
|
0.81 |
% |
|
|
0.92 |
% |
|
|
0.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net charge-offs - noncovered to average loans |
|
|
0.13 |
% |
|
|
0.13 |
% |
|
|
0.17 |
% |
|
|
0.18 |
% |
|
|
0.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial/real estate loans |
|
$ |
9,355,196 |
|
|
$ |
9,095,606 |
|
|
$ |
8,629,013 |
|
|
$ |
8,582,849 |
|
|
$ |
8,415,592 |
|
Residential mortgage loans |
|
|
1,744,313 |
|
|
|
1,720,640 |
|
|
|
1,701,144 |
|
|
|
1,668,201 |
|
|
|
1,599,931 |
|
Consumer loans |
|
|
1,581,352 |
|
|
|
1,563,070 |
|
|
|
1,573,446 |
|
|
|
1,570,345 |
|
|
|
1,579,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average loans |
|
$ |
12,680,861 |
|
|
$ |
12,379,316 |
|
|
$ |
11,903,603 |
|
|
$ |
11,821,395 |
|
|
$ |
11,594,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16
HANCOCK HOLDING COMPANY
SUPPLEMENTAL ASSET QUALITY INFORMATION
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Originated Loans |
|
|
Acquired Loans (j) |
|
|
Covered Loans (k) |
|
|
Total |
|
(dollars in thousands) |
|
6/30/2014 |
|
Nonaccrual loans (l) |
|
$ |
74,533 |
|
|
$ |
12,048 |
|
|
$ |
3,320 |
|
|
$ |
89,901 |
|
Restructured loans - still accruing |
|
|
4,823 |
|
|
|
3,045 |
|
|
|
|
|
|
|
7,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans |
|
|
79,356 |
|
|
|
15,093 |
|
|
|
3,320 |
|
|
|
97,769 |
|
ORE and foreclosed assets (m) |
|
|
40,158 |
|
|
|
|
|
|
|
19,574 |
|
|
|
59,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
$ |
119,514 |
|
|
$ |
15,093 |
|
|
$ |
22,894 |
|
|
$ |
157,501 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans 90 days past due |
|
$ |
3,416 |
|
|
$ |
726 |
|
|
|
|
|
|
$ |
4,142 |
|
Allowance for loan losses |
|
$ |
78,573 |
|
|
$ |
8,947 |
|
|
$ |
41,152 |
|
|
$ |
128,672 |
|
|
|
|
|
3/31/2014 |
|
Nonaccrual loans (l) |
|
$ |
79,400 |
|
|
$ |
18,626 |
|
|
$ |
3,374 |
|
|
$ |
101,400 |
|
Restructured loans - still accruing |
|
|
4,538 |
|
|
|
3,921 |
|
|
|
|
|
|
|
8,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming loans |
|
|
83,938 |
|
|
|
22,547 |
|
|
|
3,374 |
|
|
|
109,859 |
|
ORE and foreclosed assets (m) |
|
|
45,386 |
|
|
|
|
|
|
|
24,427 |
|
|
|
69,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonperforming assets |
|
$ |
129,324 |
|
|
$ |
22,547 |
|
|
$ |
27,801 |
|
|
$ |
179,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruing loans 90 days past due |
|
$ |
2,543 |
|
|
$ |
1,455 |
|
|
|
|
|
|
$ |
3,998 |
|
Allowance for loan losses |
|
$ |
79,560 |
|
|
$ |
5,259 |
|
|
$ |
43,429 |
|
|
$ |
128,248 |
|
|
|
|
|
|
|
|
Originated Loans |
|
|
Acquired Loans (j) |
|
|
Covered Loans (k) |
|
|
Total |
|
LOANS OUTSTANDING |
|
6/30/2014 |
|
Commercial non-real estate loans |
|
$ |
4,610,696 |
|
|
$ |
769,159 |
|
|
$ |
13,836 |
|
|
$ |
5,393,691 |
|
Construction and land development loans |
|
|
903,610 |
|
|
|
119,847 |
|
|
|
17,199 |
|
|
|
1,040,656 |
|
Commercial real estate loans |
|
|
2,173,006 |
|
|
|
836,646 |
|
|
|
46,611 |
|
|
|
3,056,263 |
|
Residential mortgage loans |
|
|
1,469,977 |
|
|
|
111,724 |
|
|
|
189,570 |
|
|
|
1,771,271 |
|
Consumer loans |
|
|
1,501,163 |
|
|
|
84,403 |
|
|
|
36,609 |
|
|
|
1,622,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
$ |
10,658,452 |
|
|
$ |
1,921,779 |
|
|
$ |
303,825 |
|
|
$ |
12,884,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in loan balance from previous quarter |
|
$ |
734,088 |
|
|
($ |
350,657 |
) |
|
($ |
27,312 |
) |
|
$ |
356,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2014 |
|
Commercial non-real estate loans |
|
$ |
4,353,549 |
|
|
$ |
830,211 |
|
|
$ |
14,269 |
|
|
$ |
5,198,029 |
|
Construction and land development loans |
|
|
824,837 |
|
|
|
134,443 |
|
|
|
19,518 |
|
|
|
978,798 |
|
Commercial real estate loans |
|
|
2,110,096 |
|
|
|
907,170 |
|
|
|
52,050 |
|
|
|
3,069,316 |
|
Residential mortgage loans |
|
|
1,228,170 |
|
|
|
293,111 |
|
|
|
199,026 |
|
|
|
1,720,307 |
|
Consumer loans |
|
|
1,407,712 |
|
|
|
107,501 |
|
|
|
46,274 |
|
|
|
1,561,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
$ |
9,924,364 |
|
|
$ |
2,272,436 |
|
|
$ |
331,137 |
|
|
$ |
12,527,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in loan balance from previous quarter |
|
$ |
430,232 |
|
|
($ |
199,583 |
) |
|
($ |
27,530 |
) |
|
$ |
203,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(j) |
Loans which have been acquired and no allowance brought forward in accordance with acquisition accounting. |
(k) |
Acquired loans which are covered by loss sharing agreements with the FDIC providing considerable protection against credit risk. |
(l) |
Included in originated nonaccrual loans are $11.5 million and $16.1 million at 06/30/14 and 03/31/14, respectively, in nonaccruing restructured loans. |
(m) |
ORE received in settlement of acquired loans is no longer subject to purchase accounting guidance and has been included with ORE from originated loans. ORE received in settlement of covered loans remains covered under
the FDIC loss share agreements. |
17
|
Second Quarter
2014 Financial
Results
July 24, 2014
Second Quarter
2014 Financial
Results
July 24, 2014 |
|
Certain of the statements or information included in this presentation
may constitute forward-looking statements.
Forward-looking statements include projections of revenue,
costs, results of operations or financial condition or statements
regarding future market conditions
or
our
potential
plans
and
strategies
for
the
future.
Hancocks
ability
to
accurately project results or predict the effects of future plans or
strategies is inherently limited.
We believe that the expectations reflected or implied by any
forward-looking statements are based on reasonable
assumptions, but actual results and performance could differ
materially from those set forth in the forward-looking
statements. Factors that could cause actual results or
outcomes to differ from those expressed in the Company's
forward-looking statements include, but are not limited to, those
outlined in Hancock's SEC filings, including the Risk
Factors section of the Companys 10-K for the
year ended December 31, 2013 and form 10-Q for the most
recent quarter end. Hancock undertakes no obligation to
update or revise any forward-looking statements, and you are
cautioned not to place undue reliance on such forward-looking statements. Forward
Looking Statement 2 |
|
Continued
Improvement In The Overall Quality Of Earnings
Board authorized new 5% common stock buyback; solid capital levels and
TCE ratio of 9.29%
Return on average assets (ROA) (operating) of 1.04%
Continued the trend of replacing declining purchase accounting income
with core results*
Core net interest income (TE) increased approximately $700,000
linked-quarter
Core noninterest income increased approximately $1.0 million after
adjusting for the impact from purchase accounting items and
normalizing for the sale of selected insurance lines
Purchase accounting loan accretion declined $1.6 million
linked-quarter; management expects sizeable quarterly
declines in both the third and fourth quarters of 2014
Operating expenses declined $2.3 million linked-quarter, or 1.5%,
surpassing the quarterly expense goals set for 2014; management
expects increases in the near-term as investments are made in revenue-
generating initiatives
13% linked-quarter annualized net loan growth (excluding the
FDIC-covered portfolio)
Continued improvement in asset quality metrics
Efficiency ratio declined slightly to just under 62%
* See slides 12, 21, 22
3 |
|
Improving Trends
in Core Results; Narrowing The Gap Between Reported and Core
Core is defined as reported results less purchase accounting
adjustments. See table on slide 22. 4
E.P.S.
ROA |
|
Second Quarter
2014 Highlights
Operating income $49.6 million or
$.59 per diluted common share
$12.1 million of nonoperating
expense items included in net
income (see slide 14)
ROA (operating) 1.04%
ROTCE (operating) 11.75%
NIM 3.99%
Efficiency Ratio 61.67%
TCE 9.29%
Operating income is defined as net income excluding tax-effected
securities transactions gains or losses and nonoperating expense
items. * Core is defined as reported results less
purchase accounting adjustments. See table on slide
21. ** Noninterest expense to total revenue (TE) excluding
amortization of purchased intangibles, nonoperating expense
items, and securities transactions.
($s in millions; except per share
data)
2Q14
1Q14
LQ
change
Operating Income
$49.6
$49.1
+1%
Earnings Per Share (diluted) -
operating
$.59
$.58
+2%
Net Income
$40.0
$49.1
n/m
Earnings Per Share (diluted)
$.48
$.58
n/m
Nonoperating expense items
$12.1
---
n/m
Return on Assets (operating) (%)
1.04
1.05
-1bp
Return on Tangible Common
Equity (operating) (%)
11.75
12.04
-29bps
Total Loans (excluding covered
loans)
$12,580
$12,197
+3%
Net Interest Margin (%)
3.99
4.06
-7bps
Net Interest Margin (%) (core)*
3.35
3.37
-2bps
Net Charge-offs (%)
(non-covered)
0.13
0.13
---
Tangible Common Equity (%)
9.29
9.24
+5bps
Efficiency Ratio** (%)
61.67
62.23
-56bps
5 |
|
Level of Loan
Originations Continues To Exceed Expectations
Excluding FDIC covered loans, total loans of $12.6
billion were up $383 million, or 13% LQA
The largest component of linked-quarter net loan
growth (excluding the FDIC-covered portfolio) was
in the commercial and industrial (C&I) portfolio,
with additional growth and better mix from the
construction, residential mortgage and consumer
portfolios
The majority of the growth came from the Houston
and south Louisiana markets
For the full year of 2014, management expects
period-end annual loan growth to be in the 8-11%
range
Period-end balances. As of June 30, 2014
$s in millions; includes covered loans
$s in millions; includes covered loans
6 |
|
Continued
Improvement In Asset Quality Metrics
Nonperforming assets totaled $157.5 million, down $22.2
million compared to March 31, 2014
Nonperforming loans declined $12.1 million linked-quarter
ORE and foreclosed assets declined $10.1 million
linked-quarter
NPA ratio 1.22%, down from 1.43% linked-quarter
The allowance for loan losses was $128.7 million (1.00%)
compared to $128.2 million (1.02%) linked-quarter
The allowance maintained on the noncovered portion of the loan
portfolio increased $2.7 million linked-quarter, totaling $87.5
million
The allowance on the covered loan portfolio declined $2.3
million linked-quarter
Provision for loan losses was $6.7 million, down from $8.0
million in 1Q14
The provision for noncovered loans was $6.8 million in the
second quarter, down from $8.3 million in the first quarter
Noncovered net charge-offs totaled $4.1 million, or 0.13%,
virtually unchanged from $4.0 million, or 0.13%, in 1Q14
As of June 30, 2014
7 |
|
Securities
Portfolio Funded 2Q14 Loan Growth Will Begin To Rely On Core Deposit Funding In The Near
Term
Portfolio totaled $3.7 billion, down $121 million
linked-quarter
Decline continues to fund loan growth
Better earning asset mix
The level of the securities portfolio has reached a
floor and is expected to rise in the near term
Initiatives have been established to increase core
deposits to begin funding loan growth
Yield 2.43% for 2Q14, down 4 bps linked-quarter
Unrealized gain (net) of $28.4 million on AFS
64% HTM, 36% AFS
Duration 4.12, compared to 3.81 at March 31, 2014
Extends to 4.5 in +100 bps shift in the yield curve
Extends to 4.7 in +200 bps shift in the yield curve
$s in millions
Period-end balances. As of June 30, 2014
8 |
|
Initiatives In
Place To Grow Stronger Levels Of Core Deposit Funding
Total deposits $15.2 billion, down $29 million
linked-quarter
Linked-quarter decline mainly related to a $134
million decrease in time deposits, offset by growth
of $110 million in noninterest-bearing demand
deposits (DDA)
Funding mix remained strong
DDA comprised 38% of total period-end deposits
No and low cost deposits comprised 78% of total
period-end deposits
Cost of funds decreased 1 basis point to 22 bps
Period-end balances. As of June 30, 2014
$s in millions
$s in millions
9 |
|
Continued
Stabilization of Core NIM
Reported net interest margin (NIM) 3.99%, down 7 bps
linked-quarter
Core NIM declined 2 bps
Decline in core loan yield (-5bps) and decline the securities
portfolio yield (-4bps) impacted NIM
Slight decline in cost of funds related to debt repurchase in
2Q14
Better earning asset mix and increased loan volume
Core
NIM
=
reported
net
interest
income
(TE)
excluding
total
net
purchase
accounting adjustments, annualized, as a percent of average earning assets.
(See slide 21)
As of June 30, 2014
10 |
|
Sizeable
Declines in Purchased Loan Accretion Expected in Future Quarters
$s in millions
Impact of Purchase Accounting Adjustments 2012-2016
(2014-2016 projections
will be updated quarterly; subject to change)
As of June 30, 2014
Revenue includes loan accretion from Whitney and Peoples First, offset
by amortization of the Whitney bond portfolio premium and
amortization of the Peoples First indemnification asset.
11 |
|
Core Noninterest
Income Increased Linked-Quarter
Noninterest income, including securities transactions, totaled
$56.4 million, down $0.3 million linked-quarter
Amortization
of
the
indemnification
asset
for
FDIC
covered
loans
totaled
$3.3
million,
compared
to
$3.9
million
in
the
first
quarter;
the
amortization
is
a
reduction
to
noninterest
income
and
is
result
of
a
lower
level
of
expected
future
losses
on
covered
loans
(non-core)
Completed
the
divestiture
of
the
P&C
and
group
benefits
insurance
lines
of
business
April
1,
2014;
insurance
revenue
declined
by
approximately
$1.8
million
in
the
second
quarter
Noninterest income adjusted for the items noted above increased
approximately $1.0 million linked-quarter
Service charges on deposits totaled $19.3 million, up $0.6 million,
or 3%, from the first quarter
Bankcard and ATM fees totaled $11.6 million, up $1.0 million,
or 10%, linked-quarter
Trust fees totaled $11.5 million, up $1.3 million, or 12%, from the
first quarter reflecting, in part, a seasonal increase related
to tax preparation fees
Fees from secondary mortgage operations totaled $1.8 million, down $0.2
million, or 11%, linked-quarter
A slightly higher percentage of the mortgage loans originated during
the quarter were kept on the balance sheet as opposed to being
sold in the secondary market As of June 30, 2014
12 |
|
Continuing To
Manage To A Lower Level Of Operating Expense
Operating expense totaled $145 million in 2Q14, down $2.3 million
linked-quarter
Personnel expense totaled $79.5 million, a decrease of $1.9 million
linked-quarter reflecting, in part, first quarter seasonality
Occupancy
and
equipment
totaled
$14.9
million,
down
$0.6
million
linked-quarter
ORE expense totaled $84,000 in the second quarter, compared to $1.8
million in the first quarter
Other operating expense increased approximately $2.3 million
linked-quarter, reflecting a lower level of miscellaneous expense items
in
the first quarter
As of June 30, 2014; excluding nonoperating expense items
13
2Q14 operating expense excludes $12.1 million of nonoperating expenses
(see slide 14) The second quarter total includes gains on ORE
dispositions, and management does not expect this low level of
ORE expense to be sustainable in future quarters
|
|
Nonoperating expense items for 2Q14 totaled $12.1 million and
include:
($9.1MM)
Impact of select insurance business lines divestiture
$10.3MM
FDIC settlement
$7.5MM
Expense & Efficiency initiative and other items (branch closures,
charter consolidation, etc.)
$3.4MM
Early debt redemption
$12.1MM
Total nonoperating expense items
In April 2014, the company sold its property and casualty and group
benefits insurance intermediary business.
An approximate $9.4 million gain was recorded on the sale based on a
$15.5 million sales price less the related tangible and
intangible assets
As
noted
in
the
companys
2013
10-K,
the
FDIC
issued
an
assessment
related
to
a
targeted
review
of
certain
previously-paid loss claim reimbursements on the covered loan
portfolio.
The settlement of these matters totaled $10.3 million (less than
the upper amount of $11.5 million originally
noted in the 10-K disclosure)
In April 2014 the company announced the closing of branches in
Mississippi, Florida and Louisiana as part of its ongoing branch
rationalization process.
15 branches will close July 25, 2014 with nonoperating expense of $3.2
million
In
June
2014,
the
company
redeemed
a
portion
of
its
outstanding
debt
by
unwinding
$115
million
of
fixed
rate
reverse repos with an average rate of 3.43%.
The
$3.4
million
nonoperating
cost
of
unwinding
these
repos
will
allow
the
company
to
save
approximately
$4.0 million of interest expense annually
Nonoperating Expense Items
14 |
|
Targeted
Efficiency Ratio: Below 60% By 2016
Exceeded first quarter goal and achieved the targeted fourth quarter
goal ahead of schedule
Continuing to manage expenses in the near-term, however expenses
may rise over the next couple of quarters as investments in
higher-return, revenue-generating lines of business are
made
Remain committed to keeping expenses in line with expectations; expect
normal annual increases
Expect to incur additional nonoperating expenses through the remainder
of the initiative *The
efficiency
ratio
is
noninterest
expense
to
total
revenue
(TE)
excluding
amortization
of
0purchased
intangibles,
0nonoperating
expense
items,
and
securities
transactions.
15 |
|
Revenue
Initiatives
Continuing to invest in automation that will lead to additional
efficiency and improvements in officer productivity
Continuing initiatives designed to add loan volume, improve pricing and
enhance loan/earning asset mix
Open strategically located Business Financial Centers with additional
teams of relationship bankers
Investments in wealth management products and services
Trust
Mutual Funds
Investments in Treasury Management products and services
16 |
|
Solid Capital
Levels; Board Authorizes New Common Stock Buyback
TCE ratio 9.29%, up 5 bps linked-quarter
Completed stock buyback (ASR) in May 2014
New
5%
common
stock
buyback
authorized
by
the
Board
of
Directors
in
July
2014
Approximately 4 million shares
Will begin buyback immediately
Authorization effective through December 31, 2015
Will continue to review additional options to deploy excess capital in
the best interest of the Company and its shareholders
Projected capital levels exceed Basel III fully implemented, required
guidelines As of June 30, 2014
17 |
|
Appendix:
Near-Term Outlook
2Q14
Items to note
Guidance
Loans
+13% LQA
+12% Y-o-Y
Excludes covered
portfolio
8-11% EOP growth for the full year of 2014
Purchase Accounting
Adjustments
$16.7 million
(see slide 22)
Includes items
impacting revenue
and expense
$9 million decline in PAA revenue over the next 2
quarters per slide 11
Net Interest Margin
(NIM)
3.99% reported
3.35% core
Reported
down
7bps
Core
down
2bps
Core NIM relatively stable; reported NIM decrease
Noninterest Expense
$144.7 million
operating
$12.1
million
of
nonoperating
costs
Slightly higher in the near term as investments are
made in revenue-generating initiatives
E.P.S. (operating,
diluted)
$.59
See calculation on
slide 20
E.P.S. flat to down in the near term due to sizeable
quarterly declines in purchase accounting revenue
18 |
|
Whitney Bank
locations Hancock Bank locations
Appendix:
Footprint Map
19 |
|
Appendix:
Non-GAAP Reconciliation & EPS calculation
*Management believes that adjusting net income to operating income provides a
useful measure of financial performance that helps investors compare the
Companys fundamental operations over time.
$s in millions
Three
Months
Ended
6/30/14
Three
Months
Ended
3/31/14
Three
Months
Ended
6/30/13
Net income
$40.0
$49.1
$46.9
Adjustments
from
net
to
operating
income
Securities transactions gains/(losses)
-
-
-
Nonoperating expense items:
Impact of insurance business lines
divestiture
(9.1)
-
-
FDIC settlement
10.3
-
-
Expense & efficiency initiative and other
items
7.5
-
-
Early debt redemption
3.4
Total nonoperating expense items
12.1
-
-
Taxes on adjustments at marginal tax rate
2.5
-
-
Total adjustments (net of taxes)
9.6
-
-
Operating income*
$49.6
$49.1
$46.9
20
$s in
thousands,
except E.P.S.
Three
Months
Ended
6/30/14
Three
Months
Ended
3/31/14
Three
Months
Ended
6/30/13
Operating
income to
common
shareholders
$49,575
$49,115
$46,862
Income
allocated to
participating
securities
(1,066)
(1,081)
(880)
Operating
income
allocated to
common
shareholders
$48,509
$48,034
$45,982
Weighted
average
common
shares
diluted
82,174
82,534
83,357
E.P.S. -
diluted
$.59
$.58
$.55
See Note 7 in the 1Q14 10Q for more details
on the two-class method for E.P.S.
calculation. |
|
Appendix:
Purchase Accounting Adjustments Core NII & NIM Reconciliation
21
* Excess cash recoveries include cash collected on certain zero
carrying value acquired loan pools above expected amounts. |
|
Appendix:
Purchase Accounting Core E.P.S. & ROA Reconciliation
($s in millions)
2Q14
1Q14
2Q13
Average Assets
$19,039
$19,055
$19,023
Operating Income
$49.6
$49.1
$46.9
PAA
Net Interest Margin (see slide 21)
26.7
28.3
32.7
Intangible Amortization (noninterest expense)
-6.7
-6.9
-7.3
Accretion on Indemnification Asset (noninterest income)
-3.3
-3.9
--
Total Purchase Accounting Impact
$16.7
$17.5
$25.4
Core Income (Operating less purchase accounting items)
$38.7
$37.7
$30.3
ROA (operating)
1.04%
1.05%
0.99%
Core ROA
0.82%
0.80%
0.64%
Weighted Average Diluted Shares (thousands)
82,174
82,534
83,357
E.P.S. (operating)
$.59
$.58
$.55
Core E.P.S.
$.46
$.45
$.36
22 |
|
Appendix:
Additional Loan Data
23
$s in millions
6/30/2014
3/31/2014
$ change
% change
LQA
6/30/2013
$ change
% change
Loans (EOP)
12,884
$
12,528
$
356
$
3%
11%
11,681
$
1,203
$
10%
Commercial
5,394
5,198
196
4%
15%
4,653
740
16%
Construction
1,041
979
62
6%
25%
966
74
8%
Real Estate
3,056
3,069
(13)
0%
-2%
2,872
184
6%
Residential mortgage
1,771
1,720
51
3%
12%
1,616
155
10%
Consumer
1,622
1,561
61
4%
16%
1,573
49
3%
Covered Loans
304
$
331
$
(27)
$
-8%
431
$
(127)
$
-29%
Commercial
14
14
(0)
-3%
26
(13)
-48%
Construction
17
20
(2)
-12%
26
(9)
-34%
Real Estate
47
52
(5)
-10%
72
(26)
-36%
Residential mortgage
190
199
(9)
-5%
235
(46)
-19%
Consumer
37
46
(10)
-21%
70
(34)
-48%
Loans excluding covered
12,580
$
12,197
$
383
$
3%
13%
11,251
$
1,329
$
12%
Commercial
5,380
5,184
196
4%
15%
4,627
753
16%
Construction
1,023
959
64
7%
27%
940
83
9%
Real Estate
3,010
3,017
(8)
0%
-1%
2,800
210
7%
Residential mortgage
1,582
1,521
60
4%
16%
1,381
201
15%
Consumer
1,586
1,515
70
5%
19%
1,503
83
6% |
|
Appendix:
Whitney Portfolio Continues Solid Performance
Loan mark on the acquired-performing portfolio accreted into
earnings over the life of the portfolio
Credit-impaired loan mark available for charge-offs; if not
needed for charge-offs then accreted into income
Quarterly reviews of accretion levels and portfolio performance will
impact reported margin $s in millions
Credit-
Impaired
Performing
Total
Whitney loan mark at acquisition
(as adjusted in 4Q11)
$284
$187
$471
Acquired portfolio loan balances at acquisition
$818
$6,101
$6,919
Discount at acquisition
34.7%
3.1%
6.8%
Remaining Whitney loan mark at 6/30/14
$91
$14
$105
Remaining acquired portfolio loan balances at 6/30/14
$161
$1,867
$2,027
Acquired loan charge-offs from acquisition thru 6/30/14
$26
$13
$39
Discount at 6/30/14
56.4%
0.8%
5.2%
As of June 30, 2014
24 |
|
Appendix:
Peoples First Loan Mark Used For Charge-Offs
FDIC covered loan portfolio
Entire loan mark available for charge-offs; if not needed for
charge-offs then accreted into income
Quarterly reviews of accretion levels and portfolio performance will
impact reported margin
FDIC loss share receivable totaled $90.3 million at June 30, 2014
$s in millions
Credit Impaired
Peoples First loan mark at acquisition (12/2009)
$509
Charge-offs from acquisition thru 6/30/14
$428
Accretion since acquisition date
$89
Remaining loan mark at 6/30/14
$35
Impairment reserve at 6/30/14
$41
Remaining covered portfolio loan balances at 6/30/14
$338
Discount & allowance at 6/30/14
22%
As of June 30, 2014
25 |
|
Second Quarter
2014 Financial
Results
July 24, 2014
Second Quarter
2014 Financial
Results
July 24, 2014 |
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