ex99_1.htm

GULFPORT, MS (October 19, 2009) — Hancock Holding Company (NASDAQ: HBHC) today announced net income for the quarter ended September 30, 2009. Hancock’s third quarter 2009 net income was $15.2 million, an increase of $1.5 million, or 10.7 percent, compared to $13.7 million for the second quarter of 2009. Compared to the third quarter of 2008, net income was down $0.8 million, or 4.9 percent. Diluted earnings per share for the third quarter of 2009 were $0.47, an increase of $0.04 from the second quarter, and a decrease of $0.03 from the same quarter a year ago. Hancock’s return on average assets for the third quarter of 2009 was 0.87 percent, compared to 0.78 percent for the second quarter of 2009 and to 1.00 percent for the third quarter of 2008.

The primary drivers of the improvement in Hancock’s third quarter net income were lower provisions for loan losses and an expanding net interest margin. Net charge-offs for 2009’s third quarter were $13.5 million, or 1.24 percent of average loans, down $2.5 million from the $16.0 million, or 1.50 percent of average loans, reported for the second quarter of 2009. Non-performing assets were up slightly, increasing by $2.3 million, with non-accrual loans up $1.4 million while other real estate owned (ORE) increased $0.9 million. The non-performing asset ratio (non-performing assets as a percent of loans and foreclosed property) was 1.06 percent at September 30, 2009, compared to 1.01 percent at June 30, 2009 and to 1.04 percent at March 30, 2009.

Period-end deposits for the third quarter were $5.4 billion, up $5.4 million, or 0.1 percent, from September 30, 2008, but were down $236.1 million, or 4.2 percent, from June 30, 2009. The decrease in period-end deposits as compared to June 30, 2009, was primarily in public fund deposits. Average deposits were down $146.3 million, or 2.6 percent, from the second quarter of 2009. The decrease in average deposits was reflected in public fund deposits (down $152.9 million), interest bearing transaction deposits (down $38.0 million), and non-interest bearing deposits (down $23.9 million). An increase in time deposits of $68.5 million slightly offset the decrease.

Net charge-offs for 2009’s third quarter were $13.5 million, or 1.24 percent of average loans, down $2.5 million from the $16.0 million, or 1.5 percent of average loans, reported for the second quarter of 2009. Non-performing assets as a percent of total loans and foreclosed assets was 1.06 percent at September 30, 2009, up from 1.01 percent at June 30, 2009. Non-accrual loans increased $1.4 million while other real estate owned (ORE) increased $0.9 million compared to the prior quarter. Loans 90 days past due or greater (accruing) as a percent of period end loans decreased 9 basis points from June 30, 2009, to 0.18 percent at September 30, 2009.

Non-interest income, excluding securities transactions, for the third quarter was up $153 thousand, or 0.5 percent, compared to the same quarter a year ago and was down $4.2 million, or 12.0 percent, compared to the previous quarter. The primary factors impacting the higher levels of non-interest income compared to the same quarter a year ago were higher levels of service charges on deposit accounts (up $687 thousand or 6.2 percent), secondary mortgage market operations income (up $665 thousand or 81.4 percent), and ATM fees (up $144 thousand or 8.4 percent). These increases were partially offset primarily by investment and annuity fees (down $414 thousand or 17.1 percent), other income (down $354 thousand or 11.1 percent), trust fees (down $322 thousand or 7.4 percent), and insurance fees (down $293 thousand or 7.7 percent).

The decreases in non-interest income (excluding securities transactions) for the third quarter compared to the prior quarter was primarily due to other income (down $4.2 million or 60.0 percent) with the primarily drivers being a gain on the sale of land held for sale of $1.4 million, an increase in investment income of $1.1 million, and $0.4 million received for a legal settlement during the second quarter. Also, insurance fees were down $522 thousand, or 12.9 percent, and secondary mortgage market operations income decreased $345 thousand, or 18.9 percent, from the second quarter. These decreases were partially offset primarily by service charges on deposit accounts (up $553 thousand or 4.9 percent), and trust fees (up $153 thousand or 4.0%).

Operating expenses for the third quarter were up $266 thousand, or 0.5 percent, compared to the same quarter a year ago, but were $2.5 million, or 4.3 percent, lower than the previous quarter. The increase from the same quarter a year ago was reflected in higher personnel expense (up $449 thousand or 1.6 percent) and other operating expenses (up $181 thousand or 1.0 percent). These increases were slightly offset by a decrease in equipment expense (down $314 thousand or 11.6 percent). The decrease in operating expense from last quarter was primarily due to other operating expense (down $2.8 million or 13.1 percent), offset by higher personnel expense (up $410 thousand or 1.4 percent). The decrease in other operating expense compared to last quarter is due mostly to the FDIC special assessment of $3.4 million that was accrued in the prior quarter.

For the nine months ended September 30, 2009, and 2008, the effective income tax rates were approximately 19 percent and 27 percent, respectively. An overall higher level of tax exempt interest income and the recognition of certain tax credits had a significant impact on the effective tax rate for the first nine months of 2009. The total amount of tax-exempt income earned during the first nine months of 2009 was $15.6 million compared to $13.5 million in the comparable period in 2008. The total amount of tax credits recognized during the first nine months of 2009 was $3.3 million, compared to $2.3 million in the comparable period in 2008. The source of the tax credits for 2009 resulted from investments in New Markets Tax Credits, Qualified Zone Activity Bond Credits, Work Opportunity Tax Credits, and Historic Tax Credits.

“SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Congress passed the Private Securities Litigation Act of 1995 in an effort to encourage corporations to provide information about companies’ anticipated future financial performance. This act provides a safe harbor for such disclosure, which protects the companies from unwarranted litigation if actual results are different from management expectations. This release contains forward-looking statements and reflects management’s current views and estimates of future economic circumstances, industry conditions, company performance, and financial results. These forward-looking statements are subject to a number of factors and uncertainties which could cause the Company’s actual results and experience to differ from the anticipated results and expectations expressed in such forward-looking statements.

Hancock Holding Company													- Add 4 -
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
	Three Months Ended									Nine Months Ended
	9/30/2009			6/30/2009			9/30/2008			9/30/2009			9/30/2008
Per Common Share Data

Earnings per share:
Basic	$	0.48		$	0.43		$	0.51		$	1.35		$	1.81
Diluted	$	0.47		$	0.43		$	0.50		$	1.34		$	1.79
Cash dividends per share	$	0.24		$	0.24		$	0.24		$	0.72		$	0.72
Book value per share (period-end)	$	20.54		$	19.82		$	18.95		$	20.54		$	18.95
Tangible book value per share (period-end)	$	18.42		$	17.68		$	16.77		$	18.42		$	16.77
Weighted average number of shares:
Basic		31,857			31,820			31,471			31,828			31,402
Diluted		32,058			32,009			31,905			32,003			31,826
Period-end number of shares		31,877			31,827			31,702			31,877			31,702
Market data:
High closing price	$	42.38		$	41.19		$	68.42		$	45.56		$	68.42
Low closing price	$	29.90		$	30.12		$	33.34		$	22.51		$	33.34
Period end closing price	$	37.57		$	32.49		$	51.00		$	37.57		$	51.00
Trading volume		11,676			17,040			23,562			46,790			55,296

Other Period-end Data

FTE headcount		1,903			1,911			1,941			1,903			1,941
Tangible common equity	$	587,161		$	562,800		$	531,800		$	587,161		$	531,800
Tier I capital	$	575,856		$	565,807		$	546,379		$	575,856		$	546,379
Goodwill	$	62,277		$	62,277		$	62,277		$	62,277		$	62,277
Amortizable intangibles	$	4,996		$	5,350		$	6,402		$	4,996		$	6,402

Performance Ratios

Return on average assets		0.87	%		0.78	%		1.00	%		0.81	%		1.22	%
Return on average common equity		9.38	%		8.67	%		10.90	%		9.06	%		13.16	%
Earning asset yield (TE)		5.26	%		5.26	%		6.02	%		5.26	%		6.11	%
Total cost of funds		1.39	%		1.48	%		2.03	%		1.54	%		2.21	%
Net interest margin (TE)		3.86	%		3.78	%		3.99	%		3.71	%		3.90	%
Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions		60.81	%		61.47	%		62.92	%		62.34	%		60.92	%
Common equity (period-end) as a percent of total assets (period-end)		9.62	%		8.95	%		8.91	%		9.62	%		8.91	%
Leverage (Tier I) ratio		8.33	%		8.13	%		8.66	%		8.33	%		8.66	%
Tangible common equity ratio		8.71	%		8.06	%		7.97	%		8.71	%		7.97	%
Net charge-offs as a percent of average loans		1.24	%		1.50	%		0.42	%		1.14	%		0.34	%
Allowance for loan losses as a percent of period-end loans		1.50	%		1.49	%		1.40	%		1.50	%		1.40	%
Allowance for loan losses to NPAs + accruing loans 90 days past due		120.25	%		117.14	%		189.69	%		120.25	%		189.69	%
Loan/deposit ratio		77.36	%		74.95	%		77.46	%		74.91	%		74.81	%
Non-interest income excluding securities transactions as a percent of total revenue (TE)		33.31	%		36.65	%		34.46	%		34.69	%		35.91	%

Hancock Holding Company													- Add 5 -
Financial Highlights
(amounts in thousands)
(unaudited)
	Three Months Ended									Nine Months Ended
	9/30/2009			6/30/2009			9/30/2008			9/30/2009			9/30/2008
Asset Quality Information

Non-accrual loans	$	35,558		$	34,189		$	21,875		$	35,558		$	21,875
Foreclosed assets		9,775			8,884			2,197			9,775			2,197
Total non-performing assets	$	45,333		$	43,073		$	24,072		$	45,333		$	24,072
Non-performing assets as a percent of loans and foreclosed assets		1.06	%		1.01	%		0.59	%		1.06	%		0.59	%
Accruing loans 90 days past due	$	7,766		$	11,435		$	6,082		$	7,766		$	6,082
Accruing loans 90 days past due as a percent of loans		0.18	%		0.27	%		0.15	%		0.18	%		0.15	%
Non-performing assets + accruing loans 90 days past due
to loans and foreclosed assets		1.25	%		1.27	%		0.74	%		1.25	%		0.74	%

Net charge-offs	$	13,495		$	16,019		$	4,164		$	36,631		$	9,592
Net charge-offs as a percent of average loans		1.24	%		1.50	%		0.42	%		1.14	%		0.34	%

Allowance for loan losses	$	63,850		$	63,850		$	57,200		$	63,850		$	57,200
Allowance for loan losses as a percent of period-end loans		1.50	%		1.49	%		1.40	%		1.50	%		1.40	%
Allowance for loan losses to NPAs + accruing loans 90 days past due		120.25	%		117.14	%		189.69	%		120.25	%		189.69	%

Provision for loan losses	$	13,495		$	16,919		$	8,064		$	38,756		$	19,669

Allowance for Loan Losses

Beginning Balance	$	63,850		$	62,950		$	53,300		$	61,725		$	47,123
Provision for loan loss		13,495			16,919			8,064			38,756			19,669
Charge-offs		14,762			17,144			5,133			40,183			13,299
Recoveries		1,267			1,125			969			3,552			3,707
Net charge-offs		13,495			16,019			4,164			36,631			9,592
Ending Balance	$	63,850		$	63,850		$	57,200		$	63,850		$	57,200

Net Charge-off Information

Net charge-offs:
Commercial/real estate loans	$	10,176		$	12,524		$	1,556		$	27,236		$	2,990
Mortgage loans		177			199			179			553			240
Direct consumer loans		821			1,226			650			2,646			1,680
Indirect consumer loans		1,169			717			867			2,733			2,011
Finance company loans		1,152			1,353			912			3,463			2,671
Total net charge-offs	$	13,495		$	16,019		$	4,164		$	36,631		$	9,592

Average loans:
Commercial/real estate loans	$	2,739,518		$	2,696,500		$	2,453,154		$	2,708,380		$	2,317,134
Mortgage loans		438,659			452,324			427,752			445,549			413,453
Direct consumer loans		603,394			596,725			546,079			601,926			529,153
Indirect consumer loans		410,035			420,444			410,110			420,404			394,610
Finance Company loans		110,045			111,358			116,140			111,927			114,276
Total average loans	$	4,301,651		$	4,277,351		$	3,953,235		$	4,288,186		$	3,768,626

Net charge-offs to average loans:
Commercial/real estate loans		1.47	%		1.86	%		0.25	%		1.34	%		0.17	%
Mortgage loans		0.16	%		0.18	%		0.17	%		0.17	%		0.08	%
Direct consumer loans		0.54	%		0.82	%		0.47	%		0.59	%		0.42	%
Indirect consumer loans		1.13	%		0.68	%		0.84	%		0.87	%		0.68	%
Finance Company loans		4.15	%		4.87	%		3.12	%		4.14	%		3.12	%
Total net charge-offs to average loans		1.24	%		1.50	%		0.42	%		1.14	%		0.34	%

Hancock Holding Company										- Add 6 -
Financial Highlights
(amounts in thousands)
(unaudited)
	Three Months Ended							Nine Months Ended
	9/30/2009		6/30/2009		9/30/2008			9/30/2009		9/30/2008
Income Statement

Interest income	$	79,758	$	80,105	$	84,132		$	241,311	$	250,636
Interest income (TE)		82,757		83,054		86,774			250,203		258,165
Interest expense		22,004		23,413		29,357			73,420		93,274
Net interest income (TE)		60,753		59,641		57,417			176,783		164,891
Provision for loan losses		13,495		16,919		8,064			38,756		19,669
Noninterest income excluding securities transactions		30,347		34,504		30,194			93,907		92,375
Securities transactions gains/(losses)		61		0		(79	)		61		5,999
Noninterest expense		55,749		58,226		55,483			169,813		157,806
Income before income taxes		18,918		16,051		21,343			53,290		78,261
Income tax expense		3,700		2,305		5,338			10,295		21,215
Net income	$	15,218	$	13,746	$	16,005		$	42,995	$	57,046

Noninterest Income and Noninterest Expense

Service charges on deposit accounts	$	11,795	$	11,242	$	11,108		$	33,540	$	32,777
Trust fees		4,008		3,855		4,330			11,189		13,080
Debit card & merchant fees		2,845		2,895		2,805			8,309		8,229
Insurance fees		3,526		4,048		3,819			11,026		12,419
Investment & annuity fees		2,007		1,691		2,421			6,559		7,957
ATM fees		1,862		1,895		1,718			5,536		5,166
Secondary mortgage market operations		1,482		1,827		817			4,467		2,347
Other income		2,822		7,051		3,176			13,281		10,400
Noninterest income excluding securities transactions	$	30,347	$	34,504	$	30,194		$	93,907	$	92,375
Securities transactions gains/(losses)		61		0		(79	)		61		5,999
Total noninterest income including securities transactions	$	30,408	$	34,504	$	30,115		$	93,968	$	98,374

Personnel expense	$	29,113	$	28,703	$	28,664		$	88,590	$	81,326
Occupancy expense (net)		5,144		5,016		5,188			15,215		14,491
Equipment expense		2,397		2,583		2,711			7,514		8,405
Other operating expense		18,741		21,570		18,560			57,430		52,495
Amortization of intangibles		354		354		360			1,064		1,089
Total noninterest expense	$	55,749	$	58,226	$	55,483		$	169,813	$	157,806

Hancock Holding Company													- Add 7 -
Financial Highlights
(amounts in thousands)
(unaudited)
	Three Months Ended									Nine Months Ended
	9/30/2009			6/30/2009			9/30/2008			9/30/2009			9/30/2008
Period-end Balance Sheet

Commercial/real estate loans	$	2,740,722		$	2,747,048		$	2,547,732		$	2,740,722		$	2,547,732
Mortgage loans		402,930			405,896			421,254			402,930			421,254
Direct consumer loans		598,291			590,742			556,548			598,291			556,548
Indirect consumer loans		400,459			418,595			430,414			400,459			430,414
Finance Company loans		109,794			110,375			116,995			109,794			116,995
Total loans		4,252,196			4,272,656			4,072,943			4,252,196			4,072,943
Loans held for sale		33,869			47,194			16,565			33,869			16,565
Securities		1,501,289			1,596,157			1,659,423			1,501,289			1,659,423
Short-term investments		375,887			490,674			306,866			375,887			306,866
Earning assets		6,163,241			6,406,681			6,055,797			6,163,241			6,055,797
Allowance for loan losses		(63,850	)		(63,850	)		(57,200	)		(63,850	)		(57,200	)
Other assets		705,659			704,484			746,165			705,659			746,165
Total assets	$	6,805,050		$	7,047,315		$	6,744,762		$	6,805,050		$	6,744,762

Noninterest bearing deposits	$	912,092		$	953,435		$	866,414		$	912,092		$	866,414
Interest bearing transaction deposits		1,453,032			1,457,020			1,371,400			1,453,032			1,371,400
Interest bearing Public Fund deposits		1,108,164			1,316,740			1,231,529			1,108,164			1,231,529
Time deposits		1,946,867			1,929,033			1,945,452			1,946,867			1,945,452
Total interest bearing deposits		4,508,063			4,702,793			4,548,381			4,508,063			4,548,381
Total deposits		5,420,155			5,656,228			5,414,795			5,420,155			5,414,795
Other borrowed funds		614,751			638,166			635,069			614,751			635,069
Other liabilities		115,392			122,147			94,063			115,392			94,063
Common shareholders' equity		654,752			630,774			600,835			654,752			600,835
Total liabilities & common equity	$	6,805,050		$	7,047,315		$	6,744,762		$	6,805,050		$	6,744,762

Commercial Loans/Real Estate Loans

Commercial non-real estate loans	$	478,752		$	495,406		$	443,299		$	478,752		$	443,299
Construction and land development loans		545,824			567,950			570,068			545,824			570,068
Commercial real estate secured loans		1,168,618			1,137,032			1,060,148			1,168,618			1,060,148
Municipal loans		481,632			483,382			409,921			481,632			409,921
Lease financing		65,896			63,278			64,296			65,896			64,296
Total commercial/real estate loans	$	2,740,722		$	2,747,048		$	2,547,732		$	2,740,722		$	2,547,732

Construction and Land Development Loans

Residential construction	$	77,443		$	83,355		$	124,756		$	77,443		$	124,756
Commercial owner occupied		106,364			99,881			63,649			106,364			63,649
Commercial non-owner occupied		79,666			88,218			76,211			79,666			76,211
Land development		176,560			192,508			198,871			176,560			198,871
Lots		105,791			103,988			106,581			105,791			106,581
Total construction and land development loans	$	545,824		$	567,950		$	570,068		$	545,824		$	570,068

Commercial Real Estate Secured Loans
Commercial real estate owner occupied	$	601,404		$	594,244		$	571,547		$	601,404		$	571,547
Commercial real estate non-owner occupied		567,214			542,788			488,601			567,214			488,601
Total commercial real estate secured loans	$	1,168,618		$	1,137,032		$	1,060,148		$	1,168,618		$	1,060,148

Hancock Holding Company													- Add 8 -
Financial Highlights
(amounts in thousands)
(unaudited)
	Three Months Ended									Nine Months Ended
	9/30/2009			6/30/2009			9/30/2008			9/30/2009			9/30/2008
Average Balance Sheet

Commercial/real estate loans		2,739,518			2,696,500		$	2,453,154		$	2,708,380		$	2,317,134
Mortgage loans		438,659			452,324			427,752			445,549			413,453
Direct consumer loans		603,394			596,725			546,079			601,926			529,153
Indirect consumer loans		410,035			420,444			410,110			420,404			394,610
Finance Company loans		110,045			111,358			116,140			111,927			114,276
Total loans		4,301,651			4,277,351			3,953,235			4,288,186			3,768,626
Securities		1,478,755			1,581,966			1,765,702			1,570,025			1,777,036
Short-term investments		486,035			466,350			28,161			496,413			94,810
Earning average assets		6,266,441			6,325,667			5,747,098			6,354,624			5,640,472
Allowance for loan losses		(63,850	)		(63,027	)		(54,786	)		(63,075	)		(51,739	)
Other assets		774,676			762,972			682,316			769,949			681,645
Total assets	$	6,977,267		$	7,025,612		$	6,374,628		$	7,061,498		$	6,270,378

Noninterest bearing deposits	$	931,188		$	955,050		$	869,881		$	933,412		$	869,655
Interest bearing transaction deposits		1,459,377			1,497,395			1,408,013			1,473,179			1,410,665
Interest bearing Public Fund deposits		1,223,272			1,376,203			1,062,127			1,365,265			990,498
Time deposits		1,946,975			1,878,473			1,763,609			1,952,805			1,766,541
Total interest bearing deposits		4,629,624			4,752,071			4,233,749			4,791,249			4,167,704
Total deposits		5,560,812			5,707,121			5,103,630			5,724,661			5,037,359
Other borrowed funds		655,556			573,739			587,939			589,025			546,695
Other liabilities		117,326			108,666			98,913			113,108			107,460
Common shareholders' equity		643,573			636,086			584,146			634,704			578,864
Total liabilities & common equity	$	6,977,267		$	7,025,612		$	6,374,628		$	7,061,498		$	6,270,378

Hancock Holding Company													- Add 9 -
Financial Highlights
(amounts in thousands)
(unaudited)
	Three Months Ended									Nine Months Ended
	9/30/2009			6/30/2009			9/30/2008			9/30/2009			9/30/2008
Average Balance Sheet Mix

Percentage of earning assets/funding sources:
Loans		68.64	%		67.62	%		68.79	%		67.48	%		66.81	%
Securities		23.60	%		25.01	%		30.72	%		24.71	%		31.51	%
Short-term investments		7.76	%		7.37	%		0.49	%		7.81	%		1.68	%
Earning average assets		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%

Noninterest bearing deposits		14.86	%		15.10	%		15.14	%		14.70	%		15.42	%
Interest bearing transaction deposits		23.29	%		23.67	%		24.50	%		23.18	%		25.01	%
Interest bearing Public Fund deposits		19.52	%		21.76	%		18.48	%		21.48	%		17.56	%
Time deposits		31.07	%		29.69	%		30.68	%		30.73	%		31.32	%
Total deposits		88.74	%		90.22	%		88.80	%		90.09	%		89.31	%
Other borrowed funds		10.46	%		9.07	%		10.23	%		9.27	%		9.69	%
Other net interest-free funding sources		0.80	%		0.71	%		0.97	%		0.64	%		1.00	%
Total average funding sources		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%

Loan mix:
Commercial/real estate loans		63.68	%		63.05	%		62.06	%		63.16	%		61.49	%
Mortgage loans		10.20	%		10.57	%		10.82	%		10.39	%		10.97	%
Direct consumer loans		14.03	%		13.95	%		13.81	%		14.04	%		14.04	%
Indirect consumer loans		9.53	%		9.83	%		10.37	%		9.80	%		10.47	%
Finance Company loans		2.56	%		2.60	%		2.94	%		2.61	%		3.03	%
Total loans		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%

Average dollars (in thousands):
Loans	$	4,301,651		$	4,277,351		$	3,953,235		$	4,288,186		$	3,768,626
Securities		1,478,755			1,581,966			1,765,702			1,570,025			1,777,036
Short-term investments		486,035			466,350			28,161			496,413			94,810
Earning average assets	$	6,266,441		$	6,325,667		$	5,747,098		$	6,354,624		$	5,640,472

Noninterest bearing deposits	$	931,188		$	955,050		$	869,881		$	933,412		$	869,655
Interest bearing transaction deposits		1,459,377			1,497,395			1,408,013			1,473,179			1,410,665
Interest bearing Public Fund deposits		1,223,272			1,376,203			1,062,127			1,365,265			990,498
Time deposits		1,946,975			1,878,473			1,763,609			1,952,805			1,766,541
Total deposits		5,560,812			5,707,121			5,103,630			5,724,661			5,037,359
Other borrowed funds		655,556			573,739			587,939			589,025			546,695
Other net interest-free funding sources		50,073			44,807			55,529			40,938			56,418
Total average funding sources	$	6,266,441		$	6,325,667		$	5,747,098		$	6,354,624		$	5,640,472

Loans:
Commercial/real estate loans	$	2,739,518		$	2,696,500		$	2,453,154		$	2,708,380		$	2,317,134
Mortgage loans		438,659			452,324			427,752			445,549			413,453
Direct consumer loans		603,394			596,725			546,079			601,926			529,153
Indirect consumer loans		410,035			420,444			410,110			420,404			394,610
Finance Company loans		110,045			111,358			116,140			111,927			114,276
Total average loans	$	4,301,651		$	4,277,351		$	3,953,235		$	4,288,186		$	3,768,626

Hancock Holding Company																			- Add 10 -
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)

	Three Months Ended
	09/30/09							06/30/09							09/30/08
	Interest		Volume		Rate			Interest		Volume		Rate			Interest		Volume		Rate

Average Earning Assets
Commercial & real estate loans (TE)	$	36,909	$	2,739,518		5.35	%	$	35,573	$	2,696,500		5.29	%	$	36,289	$	2,453,154		5.89	%
Mortgage loans		6,334		438,659		5.78	%		6,411		452,324		5.67	%		6,366		427,752		5.95	%
Consumer loans		20,086		1,123,474		7.09	%		20,067		1,128,527		7.13	%		21,237		1,072,329		7.88	%
Loan fees & late charges		224		-		0.00	%		188		-		0.00	%		455		-		0.00	%
Total loans (TE)	$	63,553	$	4,301,651		5.87	%	$	62,239	$	4,277,351		5.83	%	$	64,347		3,953,235		6.48	%

US treasury securities		60		11,007		2.16	%		46		11,146		1.65	%		53		11,334		1.86	%
US agency securities		1,384		134,487		4.12	%		1,699		171,430		3.96	%		3,751		333,434		4.50	%
CMOs		1,968		153,511		5.13	%		2,110		167,295		5.04	%		1,786		141,355		5.05	%
Mortgage backed securities		12,278		983,394		4.99	%		13,052		1,043,590		5.00	%		13,917		1,066,233		5.22	%
Municipals (TE)		2,295		169,893		5.40	%		2,369		160,703		5.90	%		2,280		163,796		5.57	%
Other securities		349		26,463		5.27	%		340		27,802		4.89	%		557		49,550		4.50	%
Total securities (TE)		18,334		1,478,755		4.96	%		19,616		1,581,966		4.96	%		22,344		1,765,702		5.06	%

Total short-term investments		870		486,035		0.71	%		1,198		466,350		1.03	%		83		28,161		1.18	%

Average earning assets yield (TE)	$	82,757	$	6,266,441		5.26	%	$	83,053	$	6,325,667		5.26	%	$	86,774	$	5,747,098		6.02	%

Interest-bearing Liabilities
Interest-bearing transaction deposits	$	1,605	$	1,459,377		0.44	%	$	1,966	$	1,497,395		0.53	%	$	3,193	$	1,408,013		0.90	%
Time deposits		13,543		1,946,975		2.76	%		13,524		1,878,473		2.89	%		15,579		1,763,609		3.51	%
Public Funds		4,057		1,223,272		1.32	%		5,213		1,376,203		1.52	%		6,750		1,062,127		2.53	%
Total interest bearing deposits	$	19,205		4,629,624		1.65	%	$	20,703		4,752,071		1.75	%	$	25,522		4,233,749		2.40	%

Total borrowings		2,799		655,556		1.69	%		2,710		573,739		1.89	%		3,835		587,939		2.59	%

Total interest bearing liab cost	$	22,004	$	5,285,180		1.65	%	$	23,413	$	5,325,810		1.76	%	$	29,357	$	4,821,688		2.42	%

Noninterest-bearing deposits				931,188							955,050							869,881
Other net interest-free funding sources				50,073							44,807							55,529

Total Cost of Funds	$	22,004	$	6,266,441		1.39	%	$	23,413	$	6,325,667		1.48	%	$	29,357	$	5,747,098		2.03	%

Net Interest Spread (TE)	$	60,753				3.60	%	$	59,640				3.50	%	$	57,417				3.60	%

Net Interest Margin (TE)	$	60,753	$	6,266,441		3.86	%	$	59,640	$	6,325,667		3.78	%	$	57,417	$	5,747,098		3.99	%

Hancock Holding Company												- Add 11 -
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)

	Nine Months Ended
	9/30/2009							9/30/2008
	Interest		Volume		Rate			Interest		Volume		Rate

Average Earning Assets
Commercial & real estate loans (TE)	$	106,946	$	2,708,380		5.28	%	$	107,094	$	2,317,134		6.17	%
Mortgage loans		19,200		445,549		5.75	%		18,451		413,453		5.95	%
Consumer loans		60,720		1,134,257		7.16	%		63,737		1,038,039		8.20	%
Loan fees & late charges		757		-		0.00	%		523		-		0.00	%
Total loans (TE)		187,623	$	4,288,186		5.84	%		189,805	$	3,768,626		6.73	%

US treasury securities		156		11,155		1.88	%		243		11,361		2.86	%
US agency securities		5,399		176,971		4.07	%		13,118		382,046		4.58	%
CMOs		6,387		169,443		5.03	%		5,356		144,882		4.93	%
Mortgage backed securities		38,699		1,024,012		5.04	%		39,002		1,008,197		5.16	%
Municipals (TE)		6,949		161,678		5.73	%		7,141		179,992		5.29	%
Other securities		1,051		26,766		5.23	%		1,650		50,558		4.35	%
Total securities (TE)		58,641		1,570,025		4.98	%		66,510		1,777,036		4.99	%

Total short-term investments		3,939		496,413		1.06	%		1,850		94,810		2.61	%

Average earning assets yield (TE)	$	250,203	$	6,354,624		5.26	%	$	258,165	$	5,640,472		6.11	%

Interest-Bearing Liabilities
Interest-bearing transaction deposits	$	5,657	$	1,473,179		0.51	%	$	10,418	$	1,410,665		0.99	%
Time deposits		43,772		1,952,805		3.00	%		52,123		1,766,541		3.94	%
Public Funds		15,833		1,365,265		1.55	%		19,112		990,498		2.58	%
Total interest bearing deposits	$	65,262	$	4,791,249		1.82	%	$	81,653	$	4,167,704		2.62	%

Total borrowings		8,158		589,025		1.85	%		11,621		546,695		2.84	%

Total interest bearing liab cost	$	73,420	$	5,380,274		1.82	%	$	93,274	$	4,714,399		2.64	%

Noninterest-bearing deposits				933,412							869,655
Other net interest-free funding sources				40,938							56,418

Total Cost of Funds	$	73,420	$	6,354,624		1.54	%	$	93,274	$	5,640,472		2.21	%

Net Interest Spread (TE)	$	176,783				3.43	%	$	164,891				3.47	%

Net Interest Margin (TE)	$	176,783	$	6,354,624		3.71	%	$	164,891	$	5,640,472		3.90	%

Hancock Holding Company																						- Add 12 -
Quarterly Financial Data
(amounts in thousands, except per share data and FTE headcount)
(unaudited)	2007			2008												2009
	4Q			1Q			2Q			3Q			4Q			1Q			2Q			3Q
Per Common Share Data

Earnings per share:
Basic	$	0.53		$	0.64		$	0.67		$	0.51		$	0.26		$	0.44		$	0.43		$	0.48
Diluted	$	0.53		$	0.63		$	0.66		$	0.50		$	0.26		$	0.44		$	0.43		$	0.47
Cash dividends per share	$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.24		$	0.24
Book value per share (period-end)	$	17.71		$	18.41		$	18.27		$	18.95		$	19.18		$	19.66		$	19.82		$	20.54
Tangible book value per share (period-end)	$	15.45		$	16.17		$	16.06		$	16.77		$	17.02		$	17.51		$	17.68		$	18.42
Weighted average number of shares:
Basic		31,097			31,346			31,382			31,471			31,757			31,805			31,820			31,857
Diluted		31,577			31,790			31,814			31,905			32,059			31,937			32,009			32,058
Period-end number of shares		31,295			31,372			31,386			31,702			31,770			31,813			31,827			31,877
Market data:
High closing price	$	43.47		$	44.29		$	45.68		$	68.42		$	56.45		$	45.56		$	41.19		$	42.38
Low closing price	$	33.35		$	33.45		$	38.38		$	33.34		$	34.20		$	22.51		$	30.12		$	29.90
Period end closing price	$	38.20		$	42.02		$	39.29		$	51.00		$	45.46		$	31.28		$	32.49		$	37.57
Trading volume		17,662			17,204			14,527			23,562			18,544			18,026			17,040			11,676

Other Period-end Data

FTE headcount		1,888			1,877			1,903			1,941			1,952			1,938			1,911			1,903
Tangible common equity	$	483,612		$	507,287		$	503,953		$	531,800		$	540,859		$	557,013		$	562,800		$	587,161
Tier I capital	$	497,307		$	512,248		$	527,479		$	546,379		$	550,216		$	558,502		$	565,807		$	575,856
Goodwill	$	62,277		$	62,277		$	62,277		$	62,277		$	62,277		$	62,277		$	62,277		$	62,277
Amortizable intangibles	$	7,753		$	7,388		$	6,762		$	6,402		$	6,059		$	5,705		$	5,350		$	4,996
Common shares repurchased for publicly announced plans		552			0			0			0			6			0			0			0

Performance Ratios

Return on average assets		1.11	%		1.30	%		1.36	%		1.00	%		0.48	%		0.79	%		0.78	%		0.87	%
Return on average common equity		11.69	%		14.13	%		14.51	%		10.90	%		5.49	%		9.12	%		8.67	%		9.38	%
Earning asset yield (TE)		6.73	%		6.28	%		6.03	%		6.02	%		5.60	%		5.26	%		5.26	%		5.26	%
Total cost of funds		2.69	%		2.48	%		2.12	%		2.03	%		2.08	%		1.75	%		1.48	%		1.39	%
Net interest margin (TE)		4.04	%		3.80	%		3.91	%		3.99	%		3.51	%		3.50	%		3.78	%		3.86	%
Noninterest expense as a percent of total revenue (TE) before amortization of purchased intangibles and securities transactions		67.98	%		59.49	%		60.26	%		62.92	%		64.61	%		64.93	%		61.47	%		60.81	%
Common equity (period-end) as a percent of total assets (period-end)		9.15	%		8.99	%		9.15	%		8.91	%		8.50	%		8.81	%		8.95	%		9.62	%
Leverage (Tier I) ratio		8.49	%		8.34	%		8.57	%		8.66	%		8.06	%		7.85	%		8.13	%		8.33	%
Tangible common equity ratio		8.08	%		7.98	%		8.13	%		7.97	%		7.62	%		7.92	%		8.06	%		8.71	%
Net charge-offs as a percent of average loans		0.26	%		0.32	%		0.27	%		0.42	%		1.20	%		0.67	%		1.50	%		1.24	%
Allowance for loan losses as a percent of period-end loans		1.31	%		1.46	%		1.41	%		1.40	%		1.45	%		1.49	%		1.49	%		1.50	%
Allowance for loan losses to NPAs + loans 90 days past due		241.43	%		265.81	%		203.06	%		189.69	%		133.16	%		119.72	%		117.14	%		120.25	%
Loan/deposit ratio		72.33	%		72.10	%		74.82	%		77.46	%		74.58	%		72.51	%		74.95	%		77.36	%
Noninterest income excluding securities transactions as a percent of total revenue (TE)		37.18	%		36.78	%		36.52	%		34.46	%		35.73	%		34.00	%		36.65	%		33.31	%

Hancock Holding Company																						- Add 13 -
Quarterly Financial Data
(amounts in thousands, except per share data and FTE headcount)
(unaudited)	2007			2008												2009
	4Q			1Q			2Q			3Q			4Q			1Q			2Q			3Q
Asset Quality Information

Non-accrual loans	$	13,067		$	12,983		$	18,106		$	21,875		$	29,976		$	38,327		$	34,189		$	35,558
Foreclosed assets		2,297			3,619			1,693			2,197			5,360			5,946			8,884			9,775
Total non-performing assets	$	15,364		$	16,602		$	19,799		$	24,072		$	35,336		$	44,273		$	43,073		$	45,333

Non-performing assets as a percent of loans and foreclosed assets		0.43	%		0.46	%		0.52	%		0.59	%		0.83	%		1.04	%		1.01	%		1.06	%

Accruing loans 90 days past due	$	4,154		$	3,340		$	6,449		$	6,082		$	11,019		$	8,306		$	11,435		$	7,766
Accruing loans 90 days past due as a percent of loans		0.12	%		0.09	%		0.17	%		0.15	%		0.26	%		0.20	%		0.27	%		0.18	%
Non-performing assets + accruing loans 90 days past due to loans and foreclosed assets		0.54	%		0.55	%		0.69	%		0.74	%		1.09	%		1.24	%		1.27	%		1.25	%

Net charge-offs	$	2,368		$	2,933		$	2,495		$	4,164		$	12,591		$	7,117		$	16,019		$	13,495
Net charge-offs as a percent of average loans		0.26	%		0.32	%		0.27	%		0.42	%		1.20	%		0.67	%		1.50	%		1.24	%

Allowance for loan losses	$	47,123		$	53,008		$	53,300		$	57,200		$	61,725		$	62,950		$	63,850		$	63,850
Allowance for loan losses as a percent of period-end loans		1.31	%		1.46	%		1.41	%		1.40	%		1.45	%		1.49	%		1.49	%		1.50	%
Allowance for loan losses to NPAs + accruing loans 90 days past due		241.43	%		265.81	%		203.06	%		189.69	%		133.16	%		119.72	%		117.14	%		120.25	%

Provision for loan losses	$	3,590		$	8,818		$	2,787		$	8,064		$	17,116		$	8,342		$	16,919		$	13,495

Net Charge-off Information

Net charge-offs:
Commercial/real estate loans	$	-100		$	834		$	600		$	1,556		$	8,971		$	4,536		$	12,524		$	10,176
Mortgage loans		42			0			61			179			269			177			199			177
Direct consumer loans		886			588			442			650			1,039			599			1,226			821
Indirect consumer loans		518			463			681			867			1,337			847			717			1,169
Finance company loans		1,024			1,048			711			912			975			958			1,353			1,152
Total net charge-offs	$	2,370		$	2,933		$	2,495		$	4,164		$	12,591		$	7,117		$	16,019		$	13,495

Average loans:
Commercial/real estate loans	$	2,175,648		$	2,224,695		$	2,272,057		$	2,453,154		$	2,622,357		$	2,688,557		$	2,696,500		$	2,739,518
Mortgage loans		393,473			399,374			413,076			427,752			432,070			445,741			452,324			438,659
Direct consumer loans		505,098			514,441			526,752			546,079			575,826			605,685			596,725			603,394
Indirect consumer loans		385,093			386,985			386,565			410,110			439,780			430,965			420,444			410,035
Finance Company loans		114,750			113,113			113,555			116,140			117,435			114,428			111,358			110,045
Total average loans	$	3,574,062		$	3,638,608		$	3,712,005		$	3,953,235		$	4,187,468		$	4,285,376		$	4,277,351		$	4,301,651

Net charge-offs to average loans:
Commercial/real estate loans		-0.02	%		0.15	%		0.11	%		0.25	%		1.36	%		0.68	%		1.86	%		1.47	%
Mortgage loans		0.04	%		0.00	%		0.06	%		0.17	%		0.25	%		0.16	%		0.18	%		0.16	%
Direct consumer loans		0.70	%		0.46	%		0.34	%		0.47	%		0.72	%		0.40	%		0.82	%		0.54	%
Indirect consumer loans		0.53	%		0.48	%		0.71	%		0.84	%		1.21	%		0.80	%		0.68	%		1.13	%
Finance Company loans		3.54	%		3.73	%		2.52	%		3.12	%		3.30	%		3.40	%		4.87	%		4.15	%
Total net charge-offs to average loans		0.26	%		0.32	%		0.27	%		0.42	%		1.20	%		0.67	%		1.50	%		1.24	%

Hancock Holding Company																	- Add 14 -
Quarterly Financial Data
(amounts in thousands, except per share data and FTE headcount)
(unaudited)	2007		2008										2009
	4Q		1Q		2Q		3Q			4Q			1Q		2Q		3Q
Income Statement

Interest income	$	87,532	$	84,772	$	81,732	$	84,132		$	84,801		$	81,448	$	80,105	$	79,758
Interest income (TE)		90,015		87,227		84,164		86,774			87,726			84,392		83,054		82,757
Interest expense		36,067		34,345		29,573		29,357			32,727			28,002		23,413		22,004
Net interest income (TE)		53,948		52,882		54,591		57,417			54,999			56,390		59,641		60,753
Provision for loan losses		3,590		8,818		2,787		8,064			17,116			8,342		16,919		13,495
Noninterest income excluding securities transactions		31,924		30,769		31,412		30,194			30,578			29,055		34,504		30,347
Securities transactions gains/(losses)		234		5,652		426		(79	)		(1,174	)		0		0		61
Noninterest expense		58,804		50,134		52,189		55,483			55,637			55,838		58,226		55,749
Income before income taxes		21,229		27,896		29,021		21,343			8,725			18,321		16,051		18,918
Income tax expense		4,628		7,839		8,037		5,338			405			4,290		2,305		3,700
Net income	$	16,601	$	20,057	$	20,984	$	16,005		$	8,320		$	14,031	$	13,746	$	15,218



Noninterest Income and Noninterest Expense

Service charges on deposit accounts	$	11,182	$	10,789	$	10,879	$	11,108		$	11,467		$	10,503	$	11,242	$	11,795
Trust fees		4,194		4,176		4,575		4,330			3,777			3,327		3,855		4,008
Debit card & merchant fees		2,646		2,540		2,884		2,805			2,853			2,568		2,895		2,845
Insurance fees		5,557		4,340		4,259		3,819			4,136			3,452		4,048		3,526
Investment & annuity fees		2,498		2,810		2,727		2,421			2,849			2,861		1,691		2,007
ATM fees		1,626		1,691		1,757		1,718			1,690			1,779		1,895		1,862
Secondary mortgage market operations		761		778		753		817			629			1,158		1,827		1,482
Other income		3,460		3,645		3,578		3,176			3,177			3,407		7,051		2,822
Noninterest income excluding securities transactions	$	31,924	$	30,769	$	31,412	$	30,194		$	30,578		$	29,055	$	34,504	$	30,347
Securities transactions gains/(losses)		234		5,652		426		(79	)		(1,174	)		0		0		61
Total noninterest income including
securities transactions	$	32,158	$	36,421	$	31,838	$	30,115		$	29,404		$	29,055	$	34,504	$	30,408

Personnel expense	$	27,026	$	25,631	$	27,031	$	28,664		$	28,447		$	30,775	$	28,703	$	29,113
Occupancy expense (net)		6,162		4,601		4,702		5,188			5,047			5,055		5,016		5,144
Equipment expense		2,610		2,909		2,785		2,711			2,587			2,534		2,583		2,397
Other operating expense		22,574		16,628		17,307		18,560			19,213			17,120		21,570		18,741
Amortization of intangibles		432		365		364		360			343			354		354		354
Total noninterest expense	$	58,804	$	50,134	$	52,189	$	55,483		$	55,637		$	55,838	$	58,226	$	55,749