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Loans And Allowance For Loan Losses (Tables)

6 Months Ended

Jun. 30, 2011

Jun. 30, 2010


	June 30,		December 31,
	2011		2010
	( In thousands)
Commercial loans:
Commercial - originated	$	605,885	$	524,653
Commercial - acquired		2,424,887		—
Commercial - covered		45,959		34,650

Total commercial		3,076,731		559,303

Construction - originated		476,711		495,590
Construction - acquired		741,151		—
Construction - covered		153,489		157,267

Total construction		1,371,351		652,857

Real estate - originated		1,232,144		1,231,414
Real estate - acquired		1,861,373		—
Real estate - covered		147,520		181,873

Total real estate		3,241,037		1,413,287

Municipal loans - originated		485,233		471,057
Municipal loans - acquired		12,712		—
Municipal loans - covered		473		540

Total municipal loans		498,418		471,597

Lease financing - originated		45,982		50,721
Total commercial loans - originated		2,845,955		2,773,435
Total commercial loans - acquired		5,040,123		—
Total commercial loans - covered		347,441		374,330

Total commercial loans		8,233,519		3,147,765

Residential mortgage loans - originated		365,661		366,183
Residential mortgage loans - acquired		830,667		—
Residential mortgage loans - covered		247,489		293,506

Total residential mortgage loans		1,443,817		659,689

Indirect consumer loans - originated		278,261		309,454
Direct consumer loans - originated		597,593		597,947
Direct consumer loans - acquired		447,096		—
Direct consumer loans - covered		152,879		141,315

Total direct consumer loans		1,197,568		739,262

Finance Company loans - originated		95,888		100,994

Total originated loans		4,183,358		4,148,013
Total acquired loans		6,317,886		—
Total covered loans		747,809		809,151

Total loans	$	11,249,053	$	4,957,164

Changes In The Carrying Amount Of Covered Acquired Loans And Accretable Yield For Loans Receivable


	June 30, 2011												June 30, 2010
	Covered						Non-covered						Covered						Non-covered
	Carrying			Net			Carrying			Net			Carrying			Net			Carrying		Net
	Amount			Accretable			Amount			Accretable			Amount			Accretable			Amount		Accretable
	of Loans *			Discount			of Loans *			Discount			of Loans *			Discount			of Loans *		Discount
Six Months Ended
(In thousands)
Balance at beginning of period	$	809,459		$	107,638		$	—		$	—		$	950,430		$	315,782		$	—	$	—
Additions								536,833			94,733			—			—			—		—
Payments received, net		(87,736	)		—			(23,778	)					(112,894	)		—			—		—
Accretion		26,834			(26,834	)		3,140			(3,140	)		30,107			(30,107	)		—		—

Balance at end of period	$	748,557		$	80,804		$	516,195		$	91,593		$	867,643		$	285,675		$	—	$	—

*	Excludes covered credit card loans and mortgage loans held for sale

Summary Of Allowance For Loan Losses, Amounts Charged-Off And Recoveries Of Loans Previously Charged-Off

It is the policy of Hancock to promptly charge off commercial, construction, and real estate loans and lease financings, or portions of these loans and leases, when available information reasonably confirms that they are uncollectible. Prior to recognizing a loss, asset value is established by determining the value of the collateral securing the loan, the borrower's and the guarantor's ability and willingness to pay. Consumer loans are generally charged down to the fair value of the collateral less cost to sell when 120 days past due. Loans deemed uncollectible are charged off against the allowance account with subsequent recoveries added back to the allowance when collected.

The following table sets forth, for the periods indicated, allowance for loan losses, amounts charged-off and recoveries of loans previously charged-off:


	Commercial			Residential mortgages			Indirect consumer			Direct consumer			Finance Company			Total
(In thousands)	June 30, 2011
Allowance for loan losses:
Beginning balance	$	56,859		$	4,626		$	2,918		$	9,322		$	8,272		$	81,997
Charge-offs		(13,664	)		(2,332	)		(921	)		(3,069	)		(2,086	)		(22,072	)
Recoveries		4,274			960			519			686			575			7,014
Net Provision for loan losses (a)		11,884			6,449			92			(1,758	)		1,299			17,966
Increase in indemnification asset (a)		19,378			3,864						4,260						27,502

Ending balance	$	78,731		$	13,567		$	2,608		$	9,441		$	8,060		$	112,407

Ending balance:
Individually evaluated for impairment	$	9,468		$	1,420		$			$			$			$	10,888
Ending balance:
Collectively evaluated for impairment	$	69,263		$	12,147		$	2,608		$	9,441		$	8,060		$	101,519
Ending balance:
Covered loans with deteriorated credit quality	$	20,398		$	4,485		$			$	4,364		$			$	29,247
Loans:
Ending balance:	$	8,233,519		$	1,443,817		$	278,261		$	1,197,568		$	95,888		$	11,249,053
Ending balance:
Individually evaluated for impairment	$	48,182		$	7,677		$			$			$			$	55,859
Ending balance:
Collectively evaluated for impairment	$	7,837,896		$	1,188,651		$	278,261		$	1,044,689		$	95,888		$	10,445,385
Ending balance:
Covered loans	$	347,441		$	247,489		$			$	152,879		$			$	747,809
Ending balance:
Acquired loans (b)	$	5,040,123		$	830,667		$			$	447,096		$			$	6,317,886

(a)

The provision for loan losses is shown "net" after coverage provided by FDIC loss share agreements on covered loans. This results in an increase in the indemnification asset, which is the difference between the provision for loan losses on covered loans of $28,948, and the impairment ($1,446) on those covered loans.

(b)	Acquired loans are recorded at fair value with no allowance brought forward in accordance with acquisition accounting.


				Residential			Indirect			Direct			Finance
	Commercial			mortgages			consumer			consumer			Company			Total
(In thousands)	June 30, 2010
Allowance for loan losses:
Beginning balance	$	42,484		$	4,782		$	3,826		$	7,145		$	7,813		$	66,050
Charge-offs		(21,886	)		(1,322	)		(1,594	)		(2,538	)		(2,818	)		(30,158	)
Recoveries		1,111			145			537			689			504			2,986
Net Provision for loan losses		32,322			1,453			483			1,334			2,751			38,343

Ending balance	$	54,031		$	5,058		$	3,252		$	6,630		$	8,250		$	77,221

Ending balance:
Individually evaluated for impairment	$	11,145		$	828		$			$			$			$	11,973
Ending balance:
Collectively evaluated for impairment	$	42,886		$	4,230		$	3,252		$	6,630		$	8,250		$	65,248
Ending balance:
Covered loans with deteriorated credit quality	$			$			$			$			$			$
Loans:
Ending balance:	$	3,042,654		$	751,259		$	329,658		$	743,118		$	105,513		$	4,972,202
Ending balance:
Individually evaluated for impairment	$	69,771		$	4,722		$			$			$			$	74,493
Ending balance:
Collectively evaluated for impairment	$	2,604,343		$	442,643		$	329,658		$	558,785		$	105,513		$	4,040,942
Ending balance:
Covered loans	$	368,540		$	303,894		$			$	184,333		$			$	856,767

In some instances, loans are placed on nonaccrual status. All accrued but uncollected interest related to the loan is deducted from income in the period the loan is assigned a nonaccrual status. For such period as a loan is in nonaccrual status, any cash receipts are applied first to principal, second to expenses incurred to cause payment to be made and lastly to the recovery of any reversed interest income and interest that would be due and owing subsequent to the loan being placed on nonaccrual status for all classes of financing receivables. Covered and acquired loans accounted for in accordance with ASC 310-30 are considered to be performing due to the application of the accretion method. These loans are excluded from the table due to their performing status. Certain covered loans accounted for using the cost recovery method or in accordance with ASC 310-20 are disclosed as non-accrual loans below. A reserve is recorded when estimated losses are in excess of the net purchase accounting marks. Loans under ASC 310-20 have accretable interest income over the life based on contractual payments receivable. The following table shows the composition of non-accrual loans by portfolio segment:

Summary Of Composition Of Non-Accrual Loans By Portfolio Segment


	June 30,		December 31,
	2011		2010
	(In thousands)
Commercial - originated	$	37,597	$	41,667
Commercial - restructured		8,410		8,712
Commercial - covered		33,869		41,917
Residential mortgages - originated		27,412		18,699
Residential mortgages - covered		2,710		3,199
Indirect consumer - originated		—		—
Direct consumer - originated		1,937		4,862
Direct consumer - acquired		1,504		—
Direct consumer - covered		2,935		170
Finance Company - originated		1,271		1,759

Total	$	117,645	$	120,985

Summary Of Impaired Loans Disaggregated By Class


June 30, 2011	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
			(In thousands)
With no related allowance recorded:
Commercial - originated	$	12,959	$	12,959	$	—	$	18,048	$	70
Residential mortgages - originated		962		962		—		1,075		—
Residential mortgages - covered		2,710		2,710		—		2,974		—
Direct consumer - covered		2,935		2,935		—		2,189		—

		19,566		19,566		—		24,286		70
With an allowance recorded:
Commercial - originated		35,223		35,223		9,468		34,656		400
Commercial - covered		33,869		33,869		10,900		37,792		—
Residential mortgages - originated		6,715		6,715		1,420		5,443		59

		75,807		75,807		21,788		77,891		459
Total:
Commercial - originated		48,182		48,182		9,468		52,704		470
Commercial - covered		33,869		33,869		10,900		37,792		—
Residential mortgages - originated		7,677		7,677		1,420		6,518		59
Residential mortgages - covered		2,710		2,710		—		2,974		—
Direct consumer - covered		2,935		2,935		—		2,189		—

Total	$	95,373	$	95,373	$	21,788	$	102,177	$	529


December 31, 2010	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
			(In thousands)
With no related allowance recorded:
Commercial	$	22,641	$	22,641	$	—	$	26,472	$	224
Commercial - covered		41,917		41,917		—		49,070		—
Residential mortgages		1,263		1,263		—		1,601		26
Residential mortgages - covered		3,199		3,199		—		3,631		—
Direct consumer - covered		170		170		—		184		—

		69,190		69,190		—		80,958		250
With an allowance recorded:
Commercial		34,194		34,194		10,648		36,650		523
Residential mortgages		4,355		4,355		1,304		4,358		88

		38,549		38,549		11,952		41,008		611
Total:
Commercial		56,835		56,835		10,648		63,122		747
Commercial - covered		41,917		41,917		—		49,070		—
Residential mortgages		5,618		5,618		1,304		5,959		114
Residential mortgages - covered		3,199		3,199		—		3,631		—
Direct consumer - covered		170		170		—		184		—

Total	$	107,739	$	107,739	$	11,952	$	121,966	$	861

Summary Of Age Analysis Of Past Due Loans


June 30, 2011	30-89 days past due		Greater than 90 days past due		Total past due		Current		Total Loans		Recorded investment > 90 days and accruing
	(In thousands)
Commercial - originated	$	12,600	$	39,506	$	52,106	$	2,775,243	$	2,827,349	$	1,909
Commercial - restructured		—		8,410		8,410		10,196		18,606		—
Commercial - acquired		—		—		—		5,040,123		5,040,123		—
Commercial - covered		—		33,869		33,869		313,572		347,441		—
Residential mortgages - originated		21,481		27,942		49,423		316,238		365,661		530
Residential mortgages - acquired		—		—		—		830,667		830,667		—
Residential mortgages - covered		—		2,710		2,710		244,779		247,489		—
Indirect consumer - originated		—		—		—		278,261		278,261		—
Direct consumer - originated		2,311		2,002		4,313		593,280		597,593		65
Direct consumer - acquired		1,776		3,057		4,833		442,263		447,096		1,553
Direct consumer - covered		—		2,935		2,935		149,944		152,879		—
Finance Company		2,740		1,271		4,011		91,877		95,888		—

Total	$	40,908	$	121,702	$	162,610	$	11,086,443	$	11,249,053	$	4,057


December 31, 2010	30-89 days past due		Greater than 90 days past due		Total past due		Current		Total Loans		Recorded investment > 90 days and accruing
	(In thousands)
Commercial	$	12,463	$	41,967	$	54,430	$	2,706,363	$	2,760,793	$	300
Commercial - restructured		—		8,712		8,712		3,929		12,641		—
Commercial - covered		—		41,917		41,917		332,414		374,331		—
Residential mortgages		22,109		19,573		41,682		324,502		366,184		874
Residential mortgages - covered		—		3,199		3,199		290,306		293,505		—
Indirect consumer		—		—		—		309,454		309,454		—
Direct consumer		4,488		5,180		9,668		588,279		597,947		318
Direct consumer - covered		—		170		170		141,145		141,315		—
Finance Company		2,011		1,759		3,770		97,224		100,994		—

Total	$	41,071	$	122,477	$	163,548	$	4,793,616	$	4,957,164	$	1,492

Schedule Of Credit Quality Indicators Of Various Classes Of Loans


	June 30, 2011								December 31, 2010
	Commercial - originated		Commercial - acquired		Commercial - covered		Total commercial		Commercial - originated		Commercial - covered		Total commercial
	(In thousands)								(In thousands)
Grade:
Pass	$	2,419,097	$	4,205,394	$	37,910	$	6,662,401	$	2,332,952	$	45,609	$	2,378,561
Pass-Watch		102,524		—		24,998		127,522		138,839		35,289		174,128
Special Mention		15,887		145,666		14,265		175,818		26,216		21,031		47,247
Substandard		245,407		685,878		134,788		1,066,073		265,180		254,033		519,213
Doubtful		63,040		3,185		135,480		201,705		10,247		18,369		28,616
Loss		—		—		—		—		—		—		—

Total	$	2,845,955	$	5,040,123	$	347,441	$	8,233,519	$	2,773,434	$	374,331	$	3,147,765

Schedule Of Credit Risk Profile By Internally Assigned Grade


	June 30, 2011								December 31, 2010
	Residential mortgages - originated		Residential mortgages - acquired		Residential mortgages - covered		Total residential mortgages		Residential mortgages - originated		Residential mortgages - covered		Total residential mortgages
	(In thousands)								(In thousands)
Grade:
Pass	$	277,441	$	745,537	$	112,434	$	1,135,412	$	284,712	$	159,885	$	444,597
Pass-Watch		6,010		—		21,699		27,709		7,857		29,673		37,530
Special Mention		546		9,856		8,156		18,558		—		15,220		15,220
Substandard		81,664		73,419		96,375		251,458		73,615		87,636		161,251
Doubtful		—		1,824		8,825		10,649		—		1,091		1,091
Loss		—		31		—		31		—		—		—

Total	$	365,661	$	830,667	$	247,489	$	1,443,817	$	366,184	$	293,505	$	659,689

Schedule Of Credit Risk Profile Based On Payment Activity


	June 30, 2011
	Direct consumer - originated		Direct consumer - acquired		Direct consumer - covered		Total direct consumer		Indirect consumer		Finance company
	(In thousands)
Performing	$	595,656	$	445,592	$	149,944	$	1,191,192	$	278,261	$	94,617
Nonperforming		1,937		1,504		2,935		6,376		—		1,271

Total	$	597,593	$	447,096	$	152,879	$	1,197,568	$	278,261	$	95,888


	December 31, 2010
	Direct consumer - originated		Direct consumer - covered		Total direct consumer		Indirect consumer		Finance company
	(In thousands)
Performing	$	593,085	$	141,145	$	734,230	$	309,454	$	99,235
Nonperforming		4,862		170		5,032		—		1,759

Total	$	597,947	$	141,315	$	739,262	$	309,454	$	100,994