EX-99.1 2 hbhc4q16ex991.htm
Exhibit 99.1
For Immediate Release
January 17, 2017
For More Information
Trisha Voltz Carlson
SVP, Investor Relations Manager
504.299.5208
trisha.carlson@hancockwhitney.com

Hancock reports fourth quarter 2016 EPS of $.64
Beat Core Pre-tax pre-provision Income Goal for 2016 by $11 million; Up 25% vs. 2015
GULFPORT, Miss. (January 17, 2017) — Hancock Holding Company (Nasdaq: HBHC) today announced its financial results for the fourth quarter of 2016. Net income for the fourth quarter of 2016 was $51.8 million, or $.64 per diluted common share (EPS), compared to $46.7 million, or $.59 EPS in the third quarter of 2016 and $15.3 million, or $.19 EPS, in the fourth quarter of 2015. Net income for the full year of 2016 was $149.3 million, or $1.87 EPS, compared to $131.5 million, or $1.64 EPS, for the full year of 2015.
Highlights of the company's fourth quarter 2016 results (compared to third quarter 2016):

· | Earnings up approximately 11%

o | Revenue up 3%

o | Noninterest income up almost 5%

o | Loan loss provision decreased 24% to $14.5 million, compared to $19.0 million

· | Core pre-tax pre-provision (core PTPP) income of $87.2 million, up $1.1 million or 1% (up $67.7 million, or 25%, 2016 vs. 2015)

· | Total loans up $681 million, or 17% linked-quarter annualized (LQA)

· | Net interest margin (NIM) of 3.26% up 6 basis points (bps); core NIM up 7 bps to 3.19%

· | Energy loans comprise 8.4% of total loans, down from 8.7%

· | Allowance for the energy portfolio totals $106.5 million, or 7.5% of energy loans

· | Tangible common equity (TCE) ratio up 71 bps to 8.64%; company raised $259 million of new capital on December 16, 2016

· | Signed an agreement to purchase certain assets and liabilities, including 9 branches, from First NBC Bank; the transaction is expected to close in the first quarter of 2017

"This quarter's results reflect continued progress in achieving the goals we put in place in late 2014," said President and CEO John M. Hairston. "Our net income for 2016 was up almost 14% compared to 2015 and we successfully exceeded our goal for core pre-tax pre-provision income, growing it by 25% in 2016 compared to 2015. We did this through organic balance sheet growth of over $1 billion, margin stability, expanding sources of noninterest income and keeping expenses flat. I am extremely proud of our 3,800 associates for achieving this goal and I look forward to continuing the momentum in 2017."
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Hancock reports fourth quarter 2016 financial results
January 17, 2017
Loans
Total loans at December 31, 2016 were $16.8 billion, up approximately $681 million from September 30, 2016. Loans to energy-related companies increased $12 million, or less than 1%, linked-quarter. The company's net loan growth during the quarter was diversified across the footprint and also in areas identified as part of the company's revenue-generating initiatives.
Average loans totaled $16.3 billion for the fourth quarter of 2016, up $300 million, or 2%, linked-quarter.
Energy
At December 31, 2016, loans to the energy industry totaled $1.4 billion, or 8.4% of total loans. As noted earlier, the energy portfolio was up less than 1% linked-quarter ($12 million) and is comprised of credits to both the exploration and production (E&P) sector and the support and services sectors. Payoffs and paydowns of approximately $62 million, plus charge-offs of approximately $12 million, were partially offset by approximately $57 million of draws on existing lines and $29 million in new E&P credit relationships.
The impact and severity of future risk rating migration, as well as any associated provisions or net charge-offs, will depend on overall oil prices and the duration of the cycle. As previously noted, even with improving oil prices, management still expects a continued lag in the recovery of energy service and support credits. Reserve-based lending credits are beginning to show signs of improvement given the stabilization in oil prices, and we expect improvement in land-based services, and non-drilling services in the Gulf of Mexico to follow.
Management currently estimates that charge-offs from energy-related credits could approximate $65-$95 million over the duration of the cycle, of which approximately $42 million has been taken to-date ($12 million in the fourth quarter of 2016). While we expect additional charge-offs in the portfolio, we continue to believe the impact on the company of the energy cycle will be manageable and our capital will remain solid.
Deposits
Total deposits at December 31, 2016 were $19.4 billion, up $539 million, or 3%, from September 30, 2016. Average deposits for the fourth quarter of 2016 were $18.9 billion, up $202 million, or 1%, linked-quarter.
Noninterest-bearing demand deposits (DDAs) totaled $7.7 billion at December 31, 2016, up $115 million, or 2%, from September 30, 2016. DDAs comprised 39% of total period-end deposits at December 31, 2016.
Interest-bearing transaction and savings deposits totaled $6.9 billion at the end of the fourth quarter of 2016, up $290 million, or 4%, from September 30, 2016. Time deposits of $2.3 billion were down $36 million, or 2%, while interest-bearing public fund deposits increased $170 million, or 7%, to $2.6 billion at December 31, 2016.
Asset Quality
Nonperforming assets (NPAs) totaled $377 million at December 31, 2016, up $46 million from September 30, 2016. During the fourth quarter of 2016, total nonperforming loans increased approximately $47 million, while foreclosed and surplus real estate (ORE) and other foreclosed assets decreased approximately $1 million. The linked-quarter increase in nonperforming loans includes $32 million in two restructured accruing energy credits. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 2.25% at December 31, 2016, up 19 bps from September 30, 2016.
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Hancock reports fourth quarter 2016 financial results
January 17, 2017
The total allowance for loan losses (ALLL) was $229.4 million at December 31, 2016, down $6.6 million from September 30, 2016. The ratio of the allowance for loan losses to period-end loans was 1.37% at December 31, 2016, down from 1.47% at September 30, 2016. The allowance for credits in the energy portfolio totaled $106.5 million, or 7.54% of energy loans, at December 31, 2016, down from $118.3 million, or 8.45% of energy loans, at September 30, 2016.
Net charge-offs from the non-purchased credit impaired (PCI) loan portfolio were $20.4 million, or 0.50% of average total loans on an annualized basis in the fourth quarter of 2016, up from $9.5 million, or 0.24% of average total loans in the third quarter of 2016. Included in the fourth quarter's total are $11.9 million in charge-offs related to one energy credit in the drilling support sector. Energy charge-offs were $4.4 million in the third quarter of 2016.
During the fourth quarter of 2016, Hancock recorded a total provision for loan losses of $14.5 million, down from $19.0 million in the third quarter of 2016.
Net Interest Income and Net Interest Margin
Net interest income (TE) for the fourth quarter of 2016 was $175.3 million, up $5.0 million from the third quarter of 2016. During the fourth quarter, the impact on net interest income from purchase accounting adjustments (PAAs) declined $0.8 million to $3.8 million. Excluding the impact from purchase accounting items, core net interest income increased $5.8 million linked-quarter. The increase is due to the improvement in volume during the quarter. Average earning assets were $21.5 billion for the fourth quarter of 2016, up $265 million, or 1%, from the third quarter of 2016.
The reported net interest margin (TE) was 3.26% for the fourth quarter of 2016, up 6 bps from the third quarter of 2016. The core net interest margin (reported net interest income (TE) excluding total net purchase accounting adjustments, annualized, as a percent of average earning assets) increased 7 bps to 3.19% during the fourth quarter of 2016. The main driver of the expansion was a change in the mix of earning assets during the quarter coupled with an increase of 4 bps in the securities portfolio.
Noninterest Income
Noninterest income totaled $65.9 million for the fourth quarter of 2016, up $2.9 million, or 5%, from the third quarter of 2016. Included in the total is amortization of $1.2 million related to the FDIC indemnification asset, down from $1.5 million in the third quarter of 2016. Excluding the impact of this item, noninterest income totaled $67.1 million, up $2.6 million, or 4%, linked-quarter.
Service charges on deposits totaled $18.7 million for the fourth quarter of 2016, virtually unchanged from the third quarter of 2016. Bank card and ATM fees totaled $12.3 million, up $0.5 million, or 4%, from the third quarter of 2016.
Trust fees totaled $11.8 million, up $0.3 million, or 2% linked-quarter. Investment and annuity income and insurance fees totaled $5.1 million, down $0.3 million, or 6% linked-quarter.
Fees from secondary mortgage operations totaled $4.3 million for the fourth quarter of 2016, down $0.6 million, or 13% linked-quarter.
Other noninterest income (excluding the amortization of the FDIC indemnification asset noted above) totaled $14.7 million, up $2.8 million, or 24%, from the third quarter of 2016. The linked-quarter increase is primarily driven by a $3.3 million gain on sale of bank property.
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Hancock reports fourth quarter 2016 financial results
January 17, 2017
Noninterest Expense & Taxes
Noninterest expense for the fourth quarter of 2016 totaled $156.3 million, up $7.2 million, or 5%, from the third quarter of 2016. The increase linked-quarter is mainly driven by personnel expense and additional expenses related to the flooding in south Louisiana in August.
Total personnel expense was $87.6 million in the fourth quarter of 2016, up $4.4 million, or 5%, from the third quarter of 2016.The increase is related to additional incentive pay due mainly to the company meeting its overall corporate objectives for 2016.
Occupancy and equipment expense totaled $13.9 million in the fourth quarter of 2016, up $0.5 million, or 4%, from the third quarter of 2016.
Amortization of intangibles totaled $4.8 million for the fourth quarter of 2016, down $0.1 million, or 2%, linked-quarter.
ORE expenses totaled $0.6 million in the fourth quarter of 2016. Net gains on ORE dispositions exceeded ORE expense in the third quarter of 2016 by $5.2 million.
Other operating expense (excluding ORE) totaled $49.4 million in the fourth quarter of 2016, down $3.4 million, or 6%, from the third quarter of 2016. The decrease is mainly related to $4.0 million of expense from an early contract termination in the third quarter of 2016, partially offset by $1.2 million of insurance claims related to the August 2016 flooding in south Louisiana in the current quarter.
The effective income tax rate for the fourth quarter of 2016 was 18%. Management expects a return to the company's historical effective tax rate (25-27%) in 2017, excluding any changes in the tax code as a result of the presidential election. 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 December 31, 2016 totaled $2.7 billion. The tangible common equity (TCE) ratio was 8.64%, up 71 bps from September 30, 2016. On December 16, 2016 the company issued $259 million, or 6.325 million shares, of its common stock. No shares of the company's common stock were repurchased in the fourth quarter of 2016. There is no current buyback authorization in place, as the most recent authorization expired on September 30, 2016. Additional capital ratios are included in the financial tables.
On December 30, 2016 the company announced it would deploy a portion of the net proceeds from its common stock offering to purchase certain assets and liabilities, including 9 branches, from First NBC Bank. The impact of this transaction is expected to be reflected in the company's first quarter of 2017 results.
Conference Call and Slide Presentation
Management will host a conference call for analysts and investors at 9:00 a.m. Central Time on Wednesday, January 18, 2017 to review the results. A live listen-only webcast of the call will be available under the Investor Relations section of Hancock's website at www.hancockwhitney.com/investors. A link to the release with additional financial tables, and a link to a slide presentation related to fourth 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
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Hancock reports fourth quarter 2016 financial results
January 17, 2017
Relations section of our website. A replay of the call will also be available through January 25, 2017 by dialing (855) 859-2056 or (404) 537-3406, passcode 45273259.
About Hancock Holding Company
Hancock Holding Company is a financial services company with regional business headquarters and locations across the Gulf South. The company's banking subsidiary provides comprehensive financial products and services through Hancock Bank locations in Mississippi, Alabama, and Florida and Whitney Bank locations in Louisiana and Texas, including traditional, online, and mobile banking; commercial and small business banking; private banking; trust and investment services; certain insurance services; and mortgage services. More information is available at www.hancockwhitney.com.
Non-GAAP Financial Measures
This news release includes non-GAAP financial measures to describe Hancock's performance. The reconciliations of those measures to GAAP measures are provided within Appendix A to this news release on page 17.
In this news release, consistent with Securities and Exchange Commission Industry Guide 3, the company presents net interest income, net interest margin and efficiency ratios on a fully taxable equivalent ("TE") basis. The TE basis adjusts for the tax-favored status of net interest income from certain loans and investments using a federal tax rate of 35% to increase tax-exempt interest income to a taxable-equivalent basis. The company believes this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources.
Over the past several quarters we have disclosed our focus on strategic initiatives that were designed to replace declining levels of purchase accounting income from acquisitions with improvement in core income, which the company defines as income excluding net purchase accounting income. The company presents core income non-GAAP measures including core net interest income and core net interest margin, core revenue and core pre-tax pre-provision profit. These measures are provided to assist the reader with better understanding of the company's performance period over period as well as providing investors with assistance in understanding the success management has experienced in executing its strategic initiatives.
We define Core Net Interest Income as net interest income excluding net purchase accounting accretion resulting from the fair market value adjustments related to acquired operations. We define Core Net Interest Margin as reported core net interest income (TE) expressed as a percentage of average earning assets. A reconciliation of reported net interest income to core net interest income and reported net interest margin to core net interest margin is included in Appendix A.
We define Core Revenue as core net interest income (TE) and noninterest income less the amortization of the FDIC loss share receivable related to loans acquired in an FDIC assisted transaction. A reconciliation of total revenue to core revenue is included in Appendix A.
We define Core Pre-tax pre-provision Income as core revenue less noninterest expense, excluding nonoperating items and intangible asset amortization. Management believes that core pre-tax pre-provision profit is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle. A reconciliation of net income to core pre-tax pre-provision profit is included in Appendix A.
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Hancock reports fourth quarter 2016 financial results
January 17, 2017
Important Cautionary Statement About 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. Forward looking statements that we may make include statements regarding balance sheet and revenue growth, the provision for loans losses, loan growth expectations, management's predictions about charge-offs for loans, including energy-related credits, the impact of changes in oil and gas prices on our energy portfolio, and the downstream impact on businesses that support the energy sector, especially in the Gulf Coast region, the impact of the First NBC transaction on our performance and financial condition, deposit trends, credit quality trends, net interest margin trends, future expense levels, success of revenue-generating initiatives, projected tax rates, future profitability, improvements in expense to revenue (efficiency) ratio, purchase accounting impacts such as accretion levels, possible repurchases of shares under stock buyback programs, and the financial impact of regulatory requirements. Also, any statement that does not describe historical or current facts is a forward-looking statement. These statements often include the words "believes," "expects," "anticipates," "estimates," "intends," "plans," "forecast," "goals," "targets," "initiatives," "focus," "potentially," "probably," "projects," "outlook" or similar expressions or future conditional verbs such as "may," "will," "should," "would," and "could." Forward-looking statements are based upon the current beliefs and expectations of management and on information currently available to management. Our statements speak as of the date hereof, and we do not assume any obligation to update these statements or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events.
Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward looking statements. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements can be found in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2015 and in other periodic reports that we file with the SEC.
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HANCOCK HOLDING COMPANY FINANCIAL HIGHLIGHTS (Unaudited)
|  | Three Months Ended |  | Twelve Months Ended
(amounts in thousands, except per share data) |  | 12/31/2016 |  | 9/30/2016 |  | 12/31/2015 |  | 12/31/2016 |  | 12/31/2015
INCOME STATEMENT DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 167,798 |  |  | $ | 163,513 |  |  | $ | 158,395 |  |  | $ | 659,116 |  |  | $ | 625,174 |
Net interest income (TE) (a) |  |  | 175,314 |  |  |  | 170,297 |  |  |  | 162,635 |  |  |  | 684,955 |  |  |  | 638,762 |
Provision for loan losses |  |  | 14,455 |  |  |  | 18,972 |  |  |  | 50,196 |  |  |  | 110,659 |  |  |  | 73,038 |
Noninterest income |  |  | 65,893 |  |  |  | 63,008 |  |  |  | 59,653 |  |  |  | 250,781 |  |  |  | 237,284 |
Noninterest expense |  |  | 156,283 |  |  |  | 149,058 |  |  |  | 156,030 |  |  |  | 612,315 |  |  |  | 619,655 |
Net income |  |  | 51,831 |  |  |  | 46,719 |  |  |  | 15,307 |  |  |  | 149,296 |  |  |  | 131,461 |
Nonoperating items - pre-tax (for informational purposes only) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,978 |  |  |  | 15,908 |
PERIOD-END BALANCE SHEET DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 16,752,151 |  |  | $ | 16,070,821 |  |  | $ | 15,703,314 |  |  | $ | 16,752,151 |  |  | $ | 15,703,314 |
Securities |  |  | 5,017,128 |  |  |  | 4,843,112 |  |  |  | 4,463,792 |  |  |  | 5,017,128 |  |  |  | 4,463,792 |
Earning assets |  |  | 21,881,520 |  |  |  | 21,085,398 |  |  |  | 20,753,095 |  |  |  | 21,881,520 |  |  |  | 20,753,095 |
Total assets |  |  | 23,975,302 |  |  |  | 23,108,730 |  |  |  | 22,833,605 |  |  |  | 23,975,302 |  |  |  | 22,833,605 |
Noninterest-bearing deposits |  |  | 7,658,203 |  |  |  | 7,543,041 |  |  |  | 7,276,127 |  |  |  | 7,658,203 |  |  |  | 7,276,127 |
Total deposits |  |  | 19,424,266 |  |  |  | 18,885,477 |  |  |  | 18,348,912 |  |  |  | 19,424,266 |  |  |  | 18,348,912 |
Common shareholders' equity |  |  | 2,719,768 |  |  |  | 2,489,127 |  |  |  | 2,413,143 |  |  |  | 2,719,768 |  |  |  | 2,413,143 |
AVERAGE BALANCE SHEET DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 16,323,897 |  |  | $ | 16,023,458 |  |  | $ | 15,198,232 |  |  | $ | 16,064,593 |  |  | $ | 14,433,367 |
Securities (b) |  |  | 4,939,240 |  |  |  | 4,707,224 |  |  |  | 4,480,972 |  |  |  | 4,706,482 |  |  |  | 4,208,195 |
Earning assets |  |  | 21,462,188 |  |  |  | 21,197,406 |  |  |  | 20,140,432 |  |  |  | 21,180,146 |  |  |  | 19,173,322 |
Total assets |  |  | 23,437,530 |  |  |  | 23,202,790 |  |  |  | 22,171,216 |  |  |  | 23,178,633 |  |  |  | 21,245,020 |
Noninterest-bearing deposits |  |  | 7,534,392 |  |  |  | 7,277,568 |  |  |  | 6,709,188 |  |  |  | 7,232,221 |  |  |  | 6,195,234 |
Total deposits |  |  | 18,912,155 |  |  |  | 18,710,236 |  |  |  | 17,821,484 |  |  |  | 18,656,325 |  |  |  | 17,124,789 |
Common shareholders' equity |  |  | 2,517,418 |  |  |  | 2,472,398 |  |  |  | 2,453,480 |  |  |  | 2,463,067 |  |  |  | 2,442,787 |
COMMON SHARE DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings per share - diluted |  | $ | 0.64 |  |  | $ | 0.59 |  |  | $ | 0.19 |  |  | $ | 1.87 |  |  | $ | 1.64 |
Cash dividends per share |  |  | 0.24 |  |  |  | 0.24 |  |  |  | 0.24 |  |  |  | 0.96 |  |  |  | 0.96 |
Book value per share (period-end) |  |  | 32.29 |  |  |  | 32.09 |  |  |  | 31.14 |  |  |  | 32.29 |  |  |  | 31.14 |
Tangible book value per share (period-end) |  |  | 23.87 |  |  |  | 22.89 |  |  |  | 21.74 |  |  |  | 23.87 |  |  |  | 21.74 |
Weighted average number of shares - diluted |  |  | 79,067 |  |  |  | 77,677 |  |  |  | 77,544 |  |  |  | 77,949 |  |  |  | 78,307 |
Period-end number of shares |  |  | 84,235 |  |  |  | 77,571 |  |  |  | 77,496 |  |  |  | 84,235 |  |  |  | 77,496 |
Market data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
High sales price |  | $ | 45.50 |  |  | $ | 32.94 |  |  | $ | 30.96 |  |  | $ | 45.50 |  |  | $ | 32.98 |
Low sales price |  |  | 31.73 |  |  |  | 24.49 |  |  |  | 23.35 |  |  |  | 20.01 |  |  |  | 23.35 |
Period-end closing price |  |  | 43.10 |  |  |  | 32.43 |  |  |  | 25.17 |  |  |  | 43.10 |  |  |  | 25.17 |
Trading volume |  |  | 43,664 |  |  |  | 42,809 |  |  |  | 48,789 |  |  |  | 184,460 |  |  |  | 185,523 |
PERFORMANCE RATIOS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets |  |  | 0.88 | % |  |  | 0.80 | % |  |  | 0.27 | % |  |  | 0.64 | % |  |  | 0.62 | %
Return on average common equity |  |  | 8.19 | % |  |  | 7.52 | % |  |  | 2.48 | % |  |  | 6.06 | % |  |  | 5.38 | %
Return on average tangible common equity |  |  | 11.42 | % |  |  | 10.58 | % |  |  | 3.53 | % |  |  | 8.56 | % |  |  | 7.72 | %
Tangible common equity ratio (c) |  |  | 8.64 | % |  |  | 7.93 | % |  |  | 7.62 | % |  |  | 8.64 | % |  |  | 7.62 | %
Net interest margin (TE) (a) |  |  | 3.26 | % |  |  | 3.20 | % |  |  | 3.21 | % |  |  | 3.23 | % |  |  | 3.33 | %
Average loan/deposit ratio |  |  | 86.31 | % |  |  | 85.64 | % |  |  | 85.28 | % |  |  | 86.11 | % |  |  | 84.28 | %
Efficiency ratio (d) |  |  | 62.82 | % |  |  | 61.80 | % |  |  | 67.63 | % |  |  | 62.79 | % |  |  | 66.14 | %
Allowance for loan losses as a percent of period-end loans |  |  | 1.37 | % |  |  | 1.47 | % |  |  | 1.15 | % |  |  | 1.37 | % |  |  | 1.15 | %
Annualized net non-purchased credit impaired charge-offs to average loans |  |  | 0.50 | % |  |  | 0.24 | % |  |  | 0.21 | % |  |  | 0.37 | % |  |  | 0.11 | %
Allowance for loan losses to non-performing loans + accruing loans 90 days past due |  |  | 63.58 | % |  |  | 74.75 | % |  |  | 105.54 | % |  |  | 63.58 | % |  |  | 105.54 | %
Noninterest income as a percent of total revenue (TE) (a) |  |  | 27.32 | % |  |  | 27.01 | % |  |  | 26.84 | % |  |  | 26.80 | % |  |  | 27.09 | %
FTE headcount |  |  | 3,724 |  |  |  | 3,747 |  |  |  | 3,921 |  |  |  | 3,724 |  |  |  | 3,921 |
(a) Tax-equivalent (TE) amounts are calculated using a federal income tax rate of 35%.
(b) Average securities does not include unrealized holding gains/losses on available for sale securities.
(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 income (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating expense.

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HANCOCK HOLDING COMPANY QUARTERLY HIGHLIGHTS (Unaudited)
|  | Three Months Ended
(dollars in thousands, except per share data) |  | 12/31/2016 |  | 9/30/2016 |  | 6/30/2016 |  | 3/31/2016 |  | 12/31/2015
INCOME STATEMENT DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 167,798 |  |  | $ | 163,513 |  |  | $ | 164,969 |  |  | $ | 162,836 |  |  | $ | 158,395 |
Net interest income (TE) (a) |  |  | 175,314 |  |  |  | 170,297 |  |  |  | 171,165 |  |  |  | 168,179 |  |  |  | 162,635 |
Provision for loan losses |  |  | 14,455 |  |  |  | 18,972 |  |  |  | 17,196 |  |  |  | 60,036 |  |  |  | 50,196 |
Noninterest income |  |  | 65,893 |  |  |  | 63,008 |  |  |  | 63,694 |  |  |  | 58,186 |  |  |  | 59,653 |
Noninterest expense |  |  | 156,283 |  |  |  | 149,058 |  |  |  | 150,942 |  |  |  | 156,032 |  |  |  | 156,030 |
Net income |  |  | 51,831 |  |  |  | 46,719 |  |  |  | 46,907 |  |  |  | 3,839 |  |  |  | 15,307 |
Nonoperating items - pre-tax (for informational purposes only) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,978 |  |  |  | - |
PERIOD-END BALANCE SHEET DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 16,752,151 |  |  | $ | 16,070,821 |  |  | $ | 16,035,796 |  |  | $ | 15,978,124 |  |  | $ | 15,703,314 |
Securities |  |  | 5,017,128 |  |  |  | 4,843,112 |  |  |  | 4,806,370 |  |  |  | 4,667,837 |  |  |  | 4,463,792 |
Earning assets |  |  | 21,881,520 |  |  |  | 21,085,398 |  |  |  | 21,037,622 |  |  |  | 20,821,513 |  |  |  | 20,753,095 |
Total assets |  |  | 23,975,302 |  |  |  | 23,108,730 |  |  |  | 23,063,790 |  |  |  | 22,809,370 |  |  |  | 22,833,605 |
Noninterest-bearing deposits |  |  | 7,658,203 |  |  |  | 7,543,041 |  |  |  | 7,151,416 |  |  |  | 7,108,598 |  |  |  | 7,276,127 |
Total deposits |  |  | 19,424,266 |  |  |  | 18,885,477 |  |  |  | 18,816,869 |  |  |  | 18,656,150 |  |  |  | 18,348,912 |
Common shareholders' equity |  |  | 2,719,768 |  |  |  | 2,489,127 |  |  |  | 2,463,365 |  |  |  | 2,421,040 |  |  |  | 2,413,143 |
AVERAGE BALANCE SHEET DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 16,323,897 |  |  | $ | 16,023,458 |  |  | $ | 16,059,846 |  |  | $ | 15,848,770 |  |  | $ | 15,198,232 |
Securities (b) |  |  | 4,939,240 |  |  |  | 4,707,224 |  |  |  | 4,648,807 |  |  |  | 4,528,090 |  |  |  | 4,480,972 |
Earning assets |  |  | 21,462,188 |  |  |  | 21,197,406 |  |  |  | 21,147,029 |  |  |  | 20,910,668 |  |  |  | 20,140,432 |
Total assets |  |  | 23,437,530 |  |  |  | 23,202,790 |  |  |  | 23,138,591 |  |  |  | 22,932,515 |  |  |  | 22,171,216 |
Noninterest-bearing deposits |  |  | 7,534,392 |  |  |  | 7,277,568 |  |  |  | 7,079,426 |  |  |  | 7,033,680 |  |  |  | 6,709,188 |
Total deposits |  |  | 18,912,155 |  |  |  | 18,710,236 |  |  |  | 18,717,755 |  |  |  | 18,281,754 |  |  |  | 17,821,484 |
Common shareholders' equity |  |  | 2,517,418 |  |  |  | 2,472,398 |  |  |  | 2,430,005 |  |  |  | 2,431,747 |  |  |  | 2,453,480 |
COMMON SHARE DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings per share - diluted |  | $ | 0.64 |  |  | $ | 0.59 |  |  | $ | 0.59 |  |  | $ | 0.05 |  |  | $ | 0.19 |
Cash dividends per share |  |  | 0.24 |  |  |  | 0.24 |  |  |  | 0.24 |  |  |  | 0.24 |  |  |  | 0.24 |
Book value per share (period-end) |  |  | 32.29 |  |  |  | 32.09 |  |  |  | 31.77 |  |  |  | 31.24 |  |  |  | 31.14 |
Tangible book value per share (period-end) |  |  | 23.87 |  |  |  | 22.89 |  |  |  | 22.50 |  |  |  | 21.90 |  |  |  | 21.74 |
Weighted average number of shares - diluted |  |  | 79,067 |  |  |  | 77,677 |  |  |  | 77,680 |  |  |  | 77,672 |  |  |  | 77,544 |
Period-end number of shares |  |  | 84,235 |  |  |  | 77,571 |  |  |  | 77,538 |  |  |  | 77,508 |  |  |  | 77,496 |
Market data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
High sales price |  | $ | 45.50 |  |  | $ | 32.94 |  |  | $ | 27.84 |  |  | $ | 25.84 |  |  | $ | 30.96 |
Low sales price |  |  | 31.73 |  |  |  | 24.49 |  |  |  | 21.93 |  |  |  | 20.01 |  |  |  | 23.35 |
Period-end closing price |  |  | 43.10 |  |  |  | 32.43 |  |  |  | 26.11 |  |  |  | 22.96 |  |  |  | 25.17 |
Trading volume |  |  | 43,664 |  |  |  | 42,809 |  |  |  | 41,668 |  |  |  | 56,319 |  |  |  | 48,789 |
PERFORMANCE RATIOS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets |  |  | 0.88 | % |  |  | 0.80 | % |  |  | 0.82 | % |  |  | 0.07 | % |  |  | 0.27 | %
Return on average common equity |  |  | 8.19 | % |  |  | 7.52 | % |  |  | 7.76 | % |  |  | 0.64 | % |  |  | 2.48 | %
Return on average tangible common equity |  |  | 11.42 | % |  |  | 10.58 | % |  |  | 11.04 | % |  |  | 0.91 | % |  |  | 3.53 | %
Tangible common equity ratio (c) |  |  | 8.64 | % |  |  | 7.93 | % |  |  | 7.81 | % |  |  | 7.69 | % |  |  | 7.62 | %
Net interest margin (TE) (a) |  |  | 3.26 | % |  |  | 3.20 | % |  |  | 3.25 | % |  |  | 3.23 | % |  |  | 3.21 | %
Average loan/deposit ratio |  |  | 86.31 | % |  |  | 85.64 | % |  |  | 85.80 | % |  |  | 86.69 | % |  |  | 85.28 | %
Efficiency ratio (d) |  |  | 62.82 | % |  |  | 61.80 | % |  |  | 62.14 | % |  |  | 64.47 | % |  |  | 67.63 | %
Allowance for loan losses as a percent of period-end loans |  |  | 1.37 | % |  |  | 1.47 | % |  |  | 1.41 | % |  |  | 1.36 | % |  |  | 1.15 | %
Annualized net non-purchased credit impaired charge-offs to average loans |  |  | 0.50 | % |  |  | 0.24 | % |  |  | 0.20 | % |  |  | 0.54 | % |  |  | 0.21 | %
Allowance for loan losses to non-performing loans + accruing loans 90 days past due |  |  | 63.58 | % |  |  | 74.75 | % |  |  | 73.01 | % |  |  | 74.55 | % |  |  | 105.54 | %
Noninterest income as a percent of total revenue (TE) (a) |  |  | 27.32 | % |  |  | 27.01 | % |  |  | 27.12 | % |  |  | 25.70 | % |  |  | 26.84 | %
FTE headcount |  |  | 3,724 |  |  |  | 3,747 |  |  |  | 3,723 |  |  |  | 3,819 |  |  |  | 3,921 |
(a) Tax-equivalent (TE) amounts are calculated using a federal income tax rate of 35%.
(b) Average securities does not include unrealized holding gains/losses on available for sale securities.
(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 income (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating expense.

8

HANCOCK HOLDING COMPANY INCOME STATEMENT (Unaudited)
|  | Three Months Ended |  | Twelve Months Ended
(dollars in thousands, except per share data) |  | 12/31/2016 |  | 9/30/2016 |  | 12/31/2015 |  | 12/31/2016 |  | 12/31/2015
Interest income |  | $ | 185,867 |  | $ | 182,153 |  | $ | 174,310 |  | $ | 732,167 |  | $ | 679,646
Interest income (TE) |  |  | 193,383 |  |  | 188,937 |  |  | 178,550 |  |  | 758,006 |  |  | 693,234
Interest expense |  |  | 18,069 |  |  | 18,640 |  |  | 15,915 |  |  | 73,051 |  |  | 54,472
Net interest income (TE) |  |  | 175,314 |  |  | 170,297 |  |  | 162,635 |  |  | 684,955 |  |  | 638,762
Provision for loan losses |  |  | 14,455 |  |  | 18,972 |  |  | 50,196 |  |  | 110,659 |  |  | 73,038
Noninterest income |  |  | 65,893 |  |  | 63,008 |  |  | 59,653 |  |  | 250,781 |  |  | 237,284
Noninterest expense |  |  | 156,283 |  |  | 149,058 |  |  | 156,030 |  |  | 612,315 |  |  | 619,655
Income before income taxes |  |  | 62,953 |  |  | 58,491 |  |  | 11,822 |  |  | 186,923 |  |  | 169,765
Income tax expense |  |  | 11,122 |  |  | 11,772 |  |  | (3,485) |  |  | 37,627 |  |  | 38,304
Net income |  | $ | 51,831 |  | $ | 46,719 |  | $ | 15,307 |  | $ | 149,296 |  | $ | 131,461
NONINTEREST INCOME AND NONINTEREST EXPENSE |  |  |  |  |  |  |  |  |
Service charges on deposit accounts |  | $ | 18,694 |  | $ | 18,716 |  | $ | 18,971 |  | $ | 74,187 |  | $ | 72,813
Trust fees |  |  | 11,764 |  |  | 11,512 |  |  | 11,287 |  |  | 46,589 |  |  | 45,627
Bank card and ATM fees |  |  | 12,317 |  |  | 11,808 |  |  | 11,792 |  |  | 47,427 |  |  | 46,480
Investment & annuity fees |  |  | 4,212 |  |  | 4,289 |  |  | 4,632 |  |  | 18,477 |  |  | 20,669
Secondary mortgage market operations |  |  | 4,277 |  |  | 4,917 |  |  | 2,884 |  |  | 16,282 |  |  | 12,579
Insurance commissions and fees |  |  | 866 |  |  | 1,088 |  |  | 1,980 |  |  | 4,501 |  |  | 8,567
Amortization of FDIC loss share receivable |  |  | (1,240) |  |  | (1,539) |  |  | (1,713) |  |  | (5,918) |  |  | (5,747)
Other income |  |  | 14,714 |  |  | 11,866 |  |  | 9,822 |  |  | 47,482 |  |  | 35,961
Securities transactions, net |  |  | 289 |  |  | 351 |  |  | (2) |  |  | 1,754 |  |  | 335
Total noninterest income |  | $ | 65,893 |  | $ | 63,008 |  | $ | 59,653 |  | $ | 250,781 |  | $ | 237,284
Personnel expense |  | $ | 87,551 |  | $ | 83,163 |  | $ | 85,315 |  | $ | 339,692 |  | $ | 332,120
Net occupancy expense |  |  | 10,478 |  |  | 10,068 |  |  | 10,639 |  |  | 41,296 |  |  | 44,788
Equipment expense |  |  | 3,460 |  |  | 3,349 |  |  | 3,871 |  |  | 13,663 |  |  | 15,481
Other real estate expense, net |  |  | 615 |  |  | (5,214) |  |  | 1,361 |  |  | (3,804) |  |  | 2,740
Other operating expense |  |  | 49,413 |  |  | 52,806 |  |  | 49,153 |  |  | 196,709 |  |  | 184,101
Amortization of intangibles |  |  | 4,766 |  |  | 4,886 |  |  | 5,691 |  |  | 19,781 |  |  | 24,184
Total operating expense |  |  | 156,283 |  |  | 149,058 |  |  | 156,030 |  |  | 607,337 |  |  | 603,414
Nonoperating expense |  |  | - |  |  | - |  |  | - |  |  | 4,978 |  |  | 16,241
Total noninterest expense |  | $ | 156,283 |  | $ | 149,058 |  | $ | 156,030 |  | $ | 612,315 |  | $ | 619,655
COMMON SHARE DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.64 |  | $ | 0.59 |  | $ | 0.19 |  | $ | 1.87 |  | $ | 1.64
Diluted |  |  | 0.64 |  |  | 0.59 |  |  | 0.19 |  |  | 1.87 |  |  | 1.64

9

HANCOCK HOLDING COMPANY INCOME STATEMENT (Unaudited)
|  | Three months ended
(dollars in thousands) |  | 12/31/2016 |  | 9/30/2016 |  | 6/30/2016 |  | 3/31/2016 |  | 12/31/2015
Interest income |  | $ | 185,867 |  | $ | 182,153 |  | $ | 183,506 |  | $ | 180,641 |  | $ | 174,310
Interest income (TE) |  |  | 193,383 |  |  | 188,937 |  |  | 189,702 |  |  | 185,984 |  |  | 178,550
Interest expense |  |  | 18,069 |  |  | 18,640 |  |  | 18,537 |  |  | 17,805 |  |  | 15,915
Net interest income (TE) |  |  | 175,314 |  |  | 170,297 |  |  | 171,165 |  |  | 168,179 |  |  | 162,635
Provision for loan losses |  |  | 14,455 |  |  | 18,972 |  |  | 17,196 |  |  | 60,036 |  |  | 50,196
Noninterest income |  |  | 65,893 |  |  | 63,008 |  |  | 63,694 |  |  | 58,186 |  |  | 59,653
Noninterest expense |  |  | 156,283 |  |  | 149,058 |  |  | 150,942 |  |  | 156,032 |  |  | 156,030
Income before income taxes |  |  | 62,953 |  |  | 58,491 |  |  | 60,525 |  |  | 4,954 |  |  | 11,822
Income tax expense |  |  | 11,122 |  |  | 11,772 |  |  | 13,618 |  |  | 1,115 |  |  | (3,485)
Net income |  | $ | 51,831 |  | $ | 46,719 |  | $ | 46,907 |  | $ | 3,839 |  | $ | 15,307
NONINTEREST INCOME AND NONINTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |  |
Service charges on deposit accounts |  | $ | 18,694 |  | $ | 18,716 |  | $ | 18,394 |  | $ | 18,383 |  | $ | 18,971
Trust fees |  |  | 11,764 |  |  | 11,512 |  |  | 12,089 |  |  | 11,224 |  |  | 11,287
Bank card and ATM fees |  |  | 12,317 |  |  | 11,808 |  |  | 11,954 |  |  | 11,348 |  |  | 11,792
Investment & annuity fees |  |  | 4,212 |  |  | 4,289 |  |  | 5,043 |  |  | 4,933 |  |  | 4,632
Secondary mortgage market operations |  |  | 4,277 |  |  | 4,917 |  |  | 4,176 |  |  | 2,912 |  |  | 2,884
Insurance commissions and fees |  |  | 866 |  |  | 1,088 |  |  | 1,240 |  |  | 1,307 |  |  | 1,980
Amortization of FDIC loss share receivable |  |  | (1,240) |  |  | (1,539) |  |  | (1,526) |  |  | (1,613) |  |  | (1,713)
Other income |  |  | 14,714 |  |  | 11,866 |  |  | 11,556 |  |  | 9,346 |  |  | 9,822
Securities transactions, net |  |  | 289 |  |  | 351 |  |  | 768 |  |  | 346 |  |  | (2)
Total noninterest income |  | $ | 65,893 |  | $ | 63,008 |  | $ | 63,694 |  | $ | 58,186 |  | $ | 59,653
Personnel expense |  | $ | 87,551 |  | $ | 83,163 |  | $ | 84,237 |  | $ | 84,741 |  | $ | 85,315
Net occupancy expense |  |  | 10,478 |  |  | 10,068 |  |  | 10,394 |  |  | 10,356 |  |  | 10,639
Equipment expense |  |  | 3,460 |  |  | 3,349 |  |  | 3,080 |  |  | 3,774 |  |  | 3,871
Other real estate expense, net |  |  | 615 |  |  | (5,214) |  |  | 350 |  |  | 445 |  |  | 1,361
Other operating expense |  |  | 49,413 |  |  | 52,806 |  |  | 47,876 |  |  | 46,614 |  |  | 49,153
Amortization of intangibles |  |  | 4,766 |  |  | 4,886 |  |  | 5,005 |  |  | 5,124 |  |  | 5,691
Total operating expense |  |  | 156,283 |  |  | 149,058 |  |  | 150,942 |  |  | 151,054 |  |  | 156,030
Nonoperating expense |  |  | - |  |  | - |  |  | - |  |  | 4,978 |  |  | -
Total noninterest expense |  | $ | 156,283 |  | $ | 149,058 |  | $ | 150,942 |  | $ | 156,032 |  | $ | 156,030

10

HANCOCK HOLDING COMPANY PERIOD-END BALANCE SHEET (Unaudited)
|  | Three Months Ended
(dollars in thousands) |  | 12/31/2016 |  | 9/30/2016 |  | 6/30/2016 |  | 3/31/2016 |  | 12/31/2015
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial non-real estate loans |  | $ | 7,613,917 |  |  | $ | 7,133,928 |  |  | $ | 7,132,519 |  |  | $ | 7,145,406 |  |  | $ | 6,995,824 |
Commercial real estate - owner occupied |  |  | 1,906,821 |  |  |  | 1,901,825 |  |  |  | 1,916,200 |  |  |  | 1,923,347 |  |  |  | 1,859,469 |
Total commercial and industrial loans |  |  | 9,520,738 |  |  |  | 9,035,753 |  |  |  | 9,048,719 |  |  |  | 9,068,753 |  |  |  | 8,855,293 |
Commercial real estate - income producing |  |  | 2,013,890 |  |  |  | 1,990,309 |  |  |  | 2,024,471 |  |  |  | 1,752,745 |  |  |  | 1,553,082 |
Construction and land development loans |  |  | 1,010,879 |  |  |  | 946,592 |  |  |  | 880,588 |  |  |  | 1,095,414 |  |  |  | 1,151,950 |
Residential mortgage loans |  |  | 2,146,713 |  |  |  | 2,037,162 |  |  |  | 2,017,650 |  |  |  | 2,000,967 |  |  |  | 2,049,524 |
Consumer loans |  |  | 2,059,931 |  |  |  | 2,061,005 |  |  |  | 2,064,368 |  |  |  | 2,060,245 |  |  |  | 2,093,465 |
Total loans |  |  | 16,752,151 |  |  |  | 16,070,821 |  |  |  | 16,035,796 |  |  |  | 15,978,124 |  |  |  | 15,703,314 |
Loans held for sale |  |  | 34,064 |  |  |  | 42,545 |  |  |  | 42,297 |  |  |  | 24,001 |  |  |  | 20,434 |
Securities |  |  | 5,017,128 |  |  |  | 4,843,112 |  |  |  | 4,806,370 |  |  |  | 4,667,837 |  |  |  | 4,463,792 |
Short-term investments |  |  | 78,177 |  |  |  | 128,920 |  |  |  | 153,159 |  |  |  | 151,551 |  |  |  | 565,555 |
Earning assets |  |  | 21,881,520 |  |  |  | 21,085,398 |  |  |  | 21,037,622 |  |  |  | 20,821,513 |  |  |  | 20,753,095 |
Allowance for loan losses |  |  | (229,418) |  |  |  | (236,061) |  |  |  | (226,086) |  |  |  | (217,794) |  |  |  | (181,179) |
Goodwill |  |  | 621,193 |  |  |  | 621,193 |  |  |  | 621,193 |  |  |  | 621,193 |  |  |  | 621,193 |
Other intangible assets, net |  |  | 87,757 |  |  |  | 92,523 |  |  |  | 97,409 |  |  |  | 102,414 |  |  |  | 107,538 |
Other assets |  |  | 1,614,250 |  |  |  | 1,545,677 |  |  |  | 1,533,652 |  |  |  | 1,482,044 |  |  |  | 1,532,958 |
Total assets |  | $ | 23,975,302 |  |  | $ | 23,108,730 |  |  | $ | 23,063,790 |  |  | $ | 22,809,370 |  |  | $ | 22,833,605 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  | $ | 7,658,203 |  |  | $ | 7,543,041 |  |  | $ | 7,151,416 |  |  | $ | 7,108,598 |  |  | $ | 7,276,127 |
Interest-bearing transaction and savings deposits |  |  | 6,910,466 |  |  |  | 6,620,373 |  |  |  | 6,754,513 |  |  |  | 7,043,484 |  |  |  | 6,767,881 |
Interest-bearing public fund deposits |  |  | 2,563,758 |  |  |  | 2,394,148 |  |  |  | 2,354,234 |  |  |  | 2,152,903 |  |  |  | 2,253,645 |
Time deposits |  |  | 2,291,839 |  |  |  | 2,327,915 |  |  |  | 2,556,706 |  |  |  | 2,351,165 |  |  |  | 2,051,259 |
Total interest-bearing deposits |  |  | 11,766,063 |  |  |  | 11,342,436 |  |  |  | 11,665,453 |  |  |  | 11,547,552 |  |  |  | 11,072,785 |
Total deposits |  |  | 19,424,266 |  |  |  | 18,885,477 |  |  |  | 18,816,869 |  |  |  | 18,656,150 |  |  |  | 18,348,912 |
Short-term borrowings |  |  | 1,225,406 |  |  |  | 1,075,956 |  |  |  | 1,095,107 |  |  |  | 1,100,787 |  |  |  | 1,423,644 |
Long-term debt |  |  | 436,280 |  |  |  | 463,710 |  |  |  | 468,028 |  |  |  | 471,245 |  |  |  | 490,145 |
Other liabilities |  |  | 169,582 |  |  |  | 194,460 |  |  |  | 220,421 |  |  |  | 160,148 |  |  |  | 157,761 |
Total liabilities |  |  | 21,255,534 |  |  |  | 20,619,603 |  |  |  | 20,600,425 |  |  |  | 20,388,330 |  |  |  | 20,420,462 |
COMMON SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock net of treasury and capital surplus |  |  | 1,989,611 |  |  |  | 1,726,756 |  |  |  | 1,722,454 |  |  |  | 1,719,454 |  |  |  | 1,715,794 |
Retained earnings |  |  | 850,689 |  |  |  | 818,060 |  |  |  | 790,452 |  |  |  | 762,652 |  |  |  | 777,944 |
Accumulated other comprehensive income |  |  | (120,532) |  |  |  | (55,689) |  |  |  | (49,541) |  |  |  | (61,066) |  |  |  | (80,595) |
Total common shareholders' equity |  |  | 2,719,768 |  |  |  | 2,489,127 |  |  |  | 2,463,365 |  |  |  | 2,421,040 |  |  |  | 2,413,143 |
Total liabilities & shareholders' equity |  | $ | 23,975,302 |  |  | $ | 23,108,730 |  |  | $ | 23,063,790 |  |  | $ | 22,809,370 |  |  | $ | 22,833,605 |
CAPITAL RATIOS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tangible common equity |  | $ | 2,010,818 |  |  | $ | 1,775,411 |  |  | $ | 1,744,764 |  |  | $ | 1,697,434 |  |  | $ | 1,684,388 |
Tier 1 capital (e) |  |  | 2,185,812 |  |  |  | 1,887,468 |  |  |  | 1,854,073 |  |  |  | 1,818,580 |  |  |  | 1,844,992 |
Common equity (period-end) as a percent of total assets (period-end) |  |  | 11.34 | % |  |  | 10.77 | % |  |  | 10.68 | % |  |  | 10.61 | % |  |  | 10.57 | %
Tangible common equity ratio |  |  | 8.64 | % |  |  | 7.93 | % |  |  | 7.81 | % |  |  | 7.69 | % |  |  | 7.62 | %
Leverage (Tier 1) ratio (e) |  |  | 9.56 | % |  |  | 8.35 | % |  |  | 8.22 | % |  |  | 8.14 | % |  |  | 8.55 | %
Tier 1 risk-based capital ratio (e) |  |  | 11.28 | % |  |  | 10.09 | % |  |  | 9.94 | % |  |  | 9.69 | % |  |  | 9.96 | %
Total risk-based capital ratio (e) |  |  | 13.24 | % |  |  | 12.15 | % |  |  | 11.96 | % |  |  | 11.75 | % |  |  | 11.86 | %
(e) Estimated for most recent period-end. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

11

HANCOCK HOLDING COMPANY AVERAGE BALANCE SHEET (Unaudited)
|  | Three Months Ended |  | Twelve Months Ended
(dollars in thousands) |  | 12/31/2016 |  | 9/30/2016 |  | 12/31/2015 |  | 12/31/2016 |  | 12/31/2015
ASSETS |  |  |  |  |  |  |  |  |  |
Commercial non-real estate loans |  | $ | 7,322,497 |  | $ | 7,127,643 |  | $ | 6,643,961 |  | $ | 7,174,271 |  | $ | 6,250,796
Commercial real estate - owner occupied |  |  | 1,890,649 |  |  | 1,929,212 |  |  | 1,860,506 |  |  | 1,900,262 |  |  | 1,784,354
Total commercial and industrial loans |  |  | 9,213,146 |  |  | 9,056,855 |  |  | 8,504,467 |  |  | 9,074,533 |  |  | 8,035,150
Commercial real estate - income producing |  |  | 2,004,025 |  |  | 2,017,323 |  |  | 1,523,903 |  |  | 1,858,323 |  |  | 1,454,716
Construction and land development loans |  |  | 965,382 |  |  | 873,877 |  |  | 1,100,502 |  |  | 1,026,348 |  |  | 1,105,348
Residential mortgage loans |  |  | 2,085,081 |  |  | 2,019,807 |  |  | 2,028,688 |  |  | 2,044,718 |  |  | 1,960,420
Consumer loans |  |  | 2,056,263 |  |  | 2,055,596 |  |  | 2,040,672 |  |  | 2,060,671 |  |  | 1,877,733
Total loans |  |  | 16,323,897 |  |  | 16,023,458 |  |  | 15,198,232 |  |  | 16,064,593 |  |  | 14,433,367
Loans held for sale |  |  | 32,398 |  |  | 38,687 |  |  | 16,717 |  |  | 28,777 |  |  | 18,101
Securities (f) |  |  | 4,939,240 |  |  | 4,707,224 |  |  | 4,480,972 |  |  | 4,706,482 |  |  | 4,208,195
Short-term investments |  |  | 166,653 |  |  | 428,037 |  |  | 444,511 |  |  | 380,294 |  |  | 513,659
Earning assets |  |  | 21,462,188 |  |  | 21,197,406 |  |  | 20,140,432 |  |  | 21,180,146 |  |  | 19,173,322
Allowance for loan losses |  |  | (237,316) |  |  | (228,603) |  |  | (140,798) |  |  | (217,550) |  |  | (133,470)
Goodwill and other intangible assets |  |  | 711,255 |  |  | 716,097 |  |  | 731,414 |  |  | 718,592 |  |  | 740,666
Other assets |  |  | 1,501,403 |  |  | 1,517,890 |  |  | 1,440,168 |  |  | 1,497,445 |  |  | 1,464,502
Total assets |  | $ | 23,437,530 |  | $ | 23,202,790 |  | $ | 22,171,216 |  | $ | 23,178,633 |  | $ | 21,245,020
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  | $ | 7,534,392 |  | $ | 7,277,568 |  | $ | 6,709,188 |  | $ | 7,232,221 |  | $ | 6,195,234
Interest-bearing transaction and savings deposits |  |  | 6,761,923 |  |  | 6,732,815 |  |  | 7,065,338 |  |  | 6,772,364 |  |  | 6,877,394
Interest-bearing public fund deposits |  |  | 2,316,997 |  |  | 2,253,588 |  |  | 1,834,302 |  |  | 2,261,659 |  |  | 1,844,802
Time deposits |  |  | 2,298,843 |  |  | 2,446,265 |  |  | 2,212,656 |  |  | 2,390,081 |  |  | 2,207,359
Total interest-bearing deposits |  |  | 11,377,763 |  |  | 11,432,668 |  |  | 11,112,296 |  |  | 11,424,104 |  |  | 10,929,555
Total deposits |  |  | 18,912,155 |  |  | 18,710,236 |  |  | 17,821,484 |  |  | 18,656,325 |  |  | 17,124,789
Short-term borrowings |  |  | 1,367,504 |  |  | 1,366,236 |  |  | 1,229,603 |  |  | 1,412,194 |  |  | 1,025,133
Long-term debt |  |  | 453,068 |  |  | 468,100 |  |  | 490,761 |  |  | 469,064 |  |  | 478,078
Other liabilities |  |  | 187,385 |  |  | 185,820 |  |  | 175,888 |  |  | 177,983 |  |  | 174,233
Common shareholders' equity |  |  | 2,517,418 |  |  | 2,472,398 |  |  | 2,453,480 |  |  | 2,463,067 |  |  | 2,442,787
Total liabilities & shareholders' equity |  | $ | 23,437,530 |  | $ | 23,202,790 |  | $ | 22,171,216 |  | $ | 23,178,633 |  | $ | 21,245,020
(f) 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
| 12/31/2016 |  | 9/30/2016 |  | 12/31/2015
(dollars in millions) | Volume |  | Interest |  | Rate |  | Volume |  | Interest |  | Rate |  | Volume |  | Interest |  | Rate
AVERAGE EARNING ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans (TE) (h) | $ | 12,182.5 |  | $ | 116.8 |  |  | 3.81 | % |  | $ | 11,948.1 |  | $ | 114.4 |  | 3.81 | % |  | $ | 11,128.8 |  | 106.2 |  |  | 3.79 | %
Residential mortgage loans |  | 2,085.1 |  |  | 20.7 |  |  | 3.98 | % |  |  | 2,019.8 |  |  | 20.2 |  | 4.01 | % |  |  | 2,028.7 |  | 20.6 |  |  | 4.07 | %
Consumer loans |  | 2,056.3 |  |  | 26.5 |  |  | 5.13 | % |  |  | 2,055.6 |  |  | 26.7 |  | 5.18 | % |  |  | 2,040.7 |  | 25.9 |  |  | 5.03 | %
Loan fees & late charges |  | - |  |  | (0.5) |  |  | 0.00 | % |  |  | - |  |  | (0.8) |  | 0.00 | % |  |  | - |  | (0.5) |  |  | 0.00 | %
Total loans (TE) (i) |  | 16,323.9 |  |  | 163.5 |  |  | 3.99 | % |  |  | 16,023.5 |  |  | 160.5 |  | 3.99 | % |  |  | 15,198.2 |  | 152.2 |  |  | 3.98 | %
Loans held for sale |  | 32.4 |  |  | 0.3 |  |  | 3.59 | % |  |  | 38.7 |  |  | 0.3 |  | 3.34 | % |  |  | 16.7 |  | 0.2 |  |  | 4.40 | %
US Treasury and government agency securities |  | 97.9 |  |  | 0.5 |  |  | 1.93 | % |  |  | 60.1 |  |  | 0.3 |  | 1.73 | % |  |  | 50.0 |  | 0.2 |  |  | 1.68 | %
CMOs and mortgage backed securities |  | 4,017.9 |  |  | 21.0 |  |  | 2.09 | % |  |  | 3,965.4 |  |  | 20.6 |  | 2.08 | % |  |  | 4,219.1 |  | 23.3 |  |  | 2.20 | %
Municipals (TE) (h) |  | 819.3 |  |  | 7.9 |  |  | 3.86 | % |  |  | 677.1 |  |  | 6.7 |  | 3.95 | % |  |  | 205.8 |  | 2.3 |  |  | 4.45 | %
Other securities |  | 4.1 |  |  | 0.0 |  |  | 1.79 | % |  |  | 4.6 |  |  | 0.0 |  | 2.51 | % |  |  | 6.1 |  | - |  |  | 1.80 | %
Total securities (TE) (g) |  | 4,939.2 |  |  | 29.4 |  |  | 2.38 | % |  |  | 4,707.2 |  |  | 27.6 |  | 2.34 | % |  |  | 4,481.0 |  | 25.8 |  |  | 2.30 | %
Total short-term investments |  | 166.7 |  |  | 0.2 |  |  | 0.49 | % |  |  | 428.0 |  |  | 0.5 |  | 0.47 | % |  |  | 444.5 |  | 0.3 |  |  | 0.30 | %
Average earning assets yield (TE) | $ | 21,462.2 |  |  | 193.4 |  |  | 3.59 | % |  | $ | 21,197.4 |  |  | 188.9 |  | 3.55 | % |  | $ | 20,140.4 |  | 178.5 |  |  | 3.53 | %
INTEREST-BEARING LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing transaction and savings deposits | $ | 6,761.9 |  |  | 4.3 |  |  | 0.25 | % |  | $ | 6,732.8 |  |  | 4.5 |  | 0.27 | % |  | $ | 7,065.3 |  | 4.4 |  |  | 0.25 | %
Time deposits |  | 2,298.8 |  |  | 5.2 |  |  | 0.90 | % |  |  | 2,446.3 |  |  | 5.6 |  | 0.91 | % |  |  | 2,212.7 |  | 4.3 |  |  | 0.76 | %
Public funds |  | 2,317.0 |  |  | 2.5 |  |  | 0.43 | % |  |  | 2,253.6 |  |  | 2.5 |  | 0.44 | % |  |  | 1,834.3 |  | 1.5 |  |  | 0.32 | %
Total interest-bearing deposits |  | 11,377.7 |  |  | 12.0 |  |  | 0.42 | % |  |  | 11,432.7 |  |  | 12.6 |  | 0.44 | % |  |  | 11,112.3 |  | 10.2 |  |  | 0.36 | %
Short-term borrowings |  | 1,367.5 |  |  | 1.1 |  |  | 0.33 | % |  |  | 1,366.2 |  |  | 1.0 |  | 0.30 | % |  |  | 1,229.6 |  | 0.4 |  |  | 0.14 | %
Long-term debt |  | 453.1 |  |  | 4.9 |  |  | 4.36 | % |  |  | 468.1 |  |  | 5.0 |  | 4.28 | % |  |  | 490.8 |  | 5.3 |  |  | 4.26 | %
Total borrowings |  | 1,820.6 |  |  | 6.0 |  |  | 1.33 | % |  |  | 1,834.3 |  |  | 6.0 |  | 1.32 | % |  |  | 1,720.4 |  | 5.7 |  |  | 1.32 | %
Total interest-bearing liabilities cost |  | 13,198.3 |  |  | 18.0 |  |  | 0.55 | % |  |  | 13,267.0 |  |  | 18.6 |  | 0.56 | % |  |  | 12,832.7 |  | 15.9 |  |  | 0.49 | %
Net interest-free funding sources |  | 8,263.9 |  |  |  |  |  |  |  |  |  | 7,930.4 |  |  |  |  |  |  |  |  | 7,307.7 |  |  |  |  |  |
Total cost of funds |  | 21,462.2 |  |  | 18.0 |  |  | 0.34 | % |  |  | 21,197.4 |  |  | 18.6 |  | 0.35 | % |  |  | 20,140.4 |  | 15.9 |  |  | 0.31 | %
Net Interest Spread (TE) |  |  |  | $ | 175.4 |  |  | 3.05 | % |  |  |  |  | $ | 170.3 |  | 2.99 | % |  |  |  |  | $ | 162.6 |  |  | 3.03 | %
Net Interest Margin (TE) | $ | 21,462.2 |  | $ | 175.4 |  |  | 3.26 | % |  | $ | 21,197.4 |  | $ | 170.3 |  | 3.20 | % |  | $ | 20,140.4 |  | $ | 162.6 |  |  | 3.21 | %
(g) Average securities does not include unrealized holding gains/losses on available for sale securities.
(h) Tax equivalent (te) amounts are calculated using a marginal federal income tax rate of 35%
(i) Includes nonaccrual loans.

13

HANCOCK HOLDING COMPANY AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY (Unaudited)
|  | Twelve Months Ended
|  | 12/31/2016 |  | 12/31/2015
(dollars in millions) |  | Volume |  | Interest |  | Rate |  | Volume |  | Interest |  | Rate
AVERAGE EARNING ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans (TE) (h) |  | $ | 11,959.2 |  | $ | 457.7 |  |  | 3.83 | % |  | $ | 10,595.2 |  | $ | 419.1 |  |  | 3.95 | %
Residential mortgage loans |  |  | 2,044.7 |  |  | 83.0 |  |  | 4.06 | % |  |  | 1,960.4 |  |  | 81.2 |  |  | 4.14 | %
Consumer loans |  |  | 2,060.6 |  |  | 105.8 |  |  | 5.13 | % |  |  | 1,877.7 |  |  | 95.4 |  |  | 5.08 | %
Loan fees & late charges |  |  | - |  |  | (2.7) |  |  | 0.00 | % |  |  | - |  |  | (0.1) |  |  | 0.00 | %
Total loans (TE) (i) |  |  | 16,064.5 |  |  | 643.8 |  |  | 4.01 | % |  |  | 14,433.3 |  |  | 595.6 |  |  | 4.13 | %
Loans held for sale |  |  | 28.8 |  |  | 1.0 |  |  | 3.55 | % |  |  | 18.1 |  |  | 0.7 |  |  | 3.74 | %
US Treasury and government agency securities |  |  | 64.6 |  |  | 1.2 |  |  | 1.78 | % |  |  | 197.3 |  |  | 3.1 |  |  | 1.57 | %
CMOs and mortgage backed securities |  |  | 4,044.3 |  |  | 86.5 |  |  | 2.14 | % |  |  | 3,804.0 |  |  | 83.5 |  |  | 2.19 | %
Municipals (TE) (h) |  |  | 592.7 |  |  | 23.7 |  |  | 4.00 | % |  |  | 199.4 |  |  | 9.0 |  |  | 4.53 | %
Other securities |  |  | 4.9 |  |  | 0.1 |  |  | 2.00 | % |  |  | 7.5 |  |  | 0.2 |  |  | 2.76 | %
Total securities (TE) (g) |  |  | 4,706.5 |  |  | 111.5 |  |  | 2.37 | % |  |  | 4,208.2 |  |  | 95.8 |  |  | 2.28 | %
Total short-term investments |  |  | 380.3 |  |  | 1.8 |  |  | 0.47 | % |  |  | 513.7 |  |  | 1.2 |  |  | 0.24 | %
Average earning assets yield (TE) |  | $ | 21,180.1 |  |  | 758.1 |  |  | 3.58 | % |  | $ | 19,173.3 |  |  | 693.3 |  |  | 3.62 | %
INTEREST-BEARING LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing transaction and savings deposits |  | $ | 6,772.4 |  |  | 18.1 |  |  | 0.27 | % |  | $ | 6,877.4 |  |  | 12.9 |  |  | 0.19 | %
Time deposits |  |  | 2,390.1 |  |  | 21.4 |  |  | 0.90 | % |  |  | 2,207.4 |  |  | 15.6 |  |  | 0.70 | %
Public funds |  |  | 2,261.6 |  |  | 9.3 |  |  | 0.41 | % |  |  | 1,844.8 |  |  | 5.4 |  |  | 0.30 | %
Total interest-bearing deposits |  |  | 11,424.1 |  |  | 48.8 |  |  | 0.43 | % |  |  | 10,929.6 |  |  | 33.9 |  |  | 0.31 | %
Short-term borrowings |  |  | 1,412.1 |  |  | 4.1 |  |  | 0.29 | % |  |  | 1,025.1 |  |  | 1.1 |  |  | 0.11 | %
Long-term debt |  |  | 469.1 |  |  | 20.1 |  |  | 4.27 | % |  |  | 478.1 |  |  | 19.5 |  |  | 4.08 | %
Total borrowings |  |  | 1,881.2 |  |  | 24.2 |  |  | 1.28 | % |  |  | 1,503.2 |  |  | 20.6 |  |  | 1.37 | %
Total interest-bearing liabilities cost |  |  | 13,305.3 |  |  | 73.0 |  |  | 0.55 | % |  |  | 12,432.8 |  |  | 54.5 |  |  | 0.44 | %
Net interest-free funding sources |  |  | 7,874.8 |  |  |  |  |  |  |  |  |  | 6,740.5 |  |  |  |  |  |  |
Total cost of funds |  |  | 21,180.1 |  |  | 73.0 |  |  | 0.34 | % |  |  | 19,173.3 |  |  | 54.5 |  |  | 0.28 | %
Net Interest Spread (TE) |  |  |  |  | $ | 685.1 |  |  | 3.03 | % |  |  |  |  | $ | 638.8 |  |  | 3.18 | %
Net Interest Margin (TE) |  | $ | 21,180.1 |  | $ | 685.1 |  |  | 3.23 | % |  | $ | 19,173.3 |  | $ | 638.8 |  |  | 3.33 | %
(g) Average securities does not include unrealized holding gains/losses on available for sale securities. |  |  |  |
(h) Tax equivalent (te) amounts are calculated using a marginal federal income tax rate of 35%.
(i) Includes nonaccrual loans. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

14

HANCOCK HOLDING COMPANY ASSET QUALITY INFORMATION (Unaudited)
|  | Three Months Ended |  | Twelve Months Ended
(dollars in thousands) |  | 12/31/2016 |  | 9/30/2016 |  | 12/31/2015 |  | 12/31/2016 |  | 12/31/2015
Nonaccrual loans (j) |  | $ | 317,970 |  | $ | 302,810 |  | $ | 159,713 |  | $ | 317,970 |  | $ | 159,713
Restructured loans - still accruing |  |  | 39,818 |  |  | 8,059 |  |  | 4,297 |  |  | 39,818 |  |  | 4,297
Total nonperforming loans |  |  | 357,788 |  |  | 310,869 |  |  | 164,010 |  |  | 357,788 |  |  | 164,010
ORE and foreclosed assets |  |  | 18,943 |  |  | 19,806 |  |  | 27,133 |  |  | 18,943 |  |  | 27,133
Total nonperforming assets |  | $ | 376,731 |  | $ | 330,675 |  | $ | 191,143 |  | $ | 376,731 |  | $ | 191,143
Nonperforming assets as a percent of loans, ORE and foreclosed assets |  |  | 2.25% |  |  | 2.06% |  |  | 1.22% |  |  | 2.25% |  |  | 1.22%
Accruing loans 90 days past due |  | $ | 3,039 |  | $ | 4,933 |  | $ | 7,653 |  | $ | 3,039 |  | $ | 7,653
Accruing loans 90 days past due as a percent of loans |  |  | 0.02% |  |  | 0.03% |  |  | 0.05% |  |  | 0.02% |  |  | 0.05%
Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets |  |  | 2.26% |  |  | 2.09% |  |  | 1.26% |  |  | 2.26% |  |  | 1.26%
ALLOWANCE FOR LOAN LOSSES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 236,061 |  | $ | 226,086 |  | $ | 139,576 |  | $ | 181,179 |  | $ | 128,762
Net provision for loan losses - purchased credit impaired loans |  |  | (681) |  |  | (416) |  |  | (1,669) |  |  | (1,404) |  |  | (3,055)
Provision for loan losses - non-purchased credit impaired loans |  |  | 15,136 |  |  | 19,388 |  |  | 51,865 |  |  | 112,063 |  |  | 76,093
Net provision for loan losses |  |  | 14,455 |  |  | 18,972 |  |  | 50,196 |  |  | 110,659 |  |  | 73,038
(Decrease)increase in FDIC loss share receivable |  |  | (930) |  |  | 410 |  |  | (816) |  |  | (3,957) |  |  | (2,800)
Net charge-offs - purchased credit impaired |  |  | (256) |  |  | (124) |  |  | (100) |  |  | (594) |  |  | 1,609
Charge-offs - non-purchased credit impaired |  |  | 24,395 |  |  | 12,439 |  |  | 11,602 |  |  | 72,888 |  |  | 29,163
Recoveries - non-purchased credit impaired |  |  | (3,971) |  |  | (2,908) |  |  | (3,725) |  |  | (13,831) |  |  | (12,951)
Net charge-offs |  |  | 20,168 |  |  | 9,407 |  |  | 7,777 |  |  | 58,463 |  |  | 17,821
Ending Balance |  | $ | 229,418 |  | $ | 236,061 |  | $ | 181,179 |  | $ | 229,418 |  | $ | 181,179
Allowance for loan losses as a percent of period-end loans |  |  | 1.37% |  |  | 1.47% |  |  | 1.15% |  |  | 1.37% |  |  | 1.15%
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due |  |  | 63.58% |  |  | 74.75% |  |  | 105.54% |  |  | 63.58% |  |  | 105.54%
NET CHARGE-OFF INFORMATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net charge-offs - non-purchased credit impaired: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans |  | $ | 13,495 |  | $ | 4,330 |  | $ | 2,465 |  | $ | 38,586 |  | $ | 2,914
Residential mortgage loans |  |  | (230) |  |  | 299 |  |  | 75 |  |  | 181 |  |  | 948
Consumer loans |  |  | 7,159 |  |  | 4,902 |  |  | 5,337 |  |  | 20,290 |  |  | 12,350
Total net charge-offs - non-purchased credit impaired |  | $ | 20,424 |  | $ | 9,531 |  | $ | 7,877 |  | $ | 59,057 |  | $ | 16,212
Net charge-offs - non-purchased credit impaired to average loans: |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans |  |  | 0.44% |  |  | 0.14% |  |  | 0.09% |  |  | 0.32% |  |  | 0.03%
Residential mortgage loans |  |  | (0.04)% |  |  | 0.06% |  |  | 0.01% |  |  | 0.01% |  |  | 0.05%
Consumer loans |  |  | 1.39% |  |  | 0.95% |  |  | 1.04% |  |  | 0.98% |  |  | 0.66%
Total net charge-offs - non-purchased credit impaired to average loans |  |  | 0.50% |  |  | 0.24% |  |  | 0.21% |  |  | 0.37% |  |  | 0.11%
(j) Included in nonaccrual loans are nonaccruing restructured loans totaling $81.9 million, $48.2 million, and $8.8 million at 12/31/16, 9/30/16 and 12/31/15, respectively. Nonaccrual loans and accruing loans past due 90 days or more do not include purchased credit impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan. Purchased credit impaired loans include loans covered by FDIC loss share agreement totaling $148.0 million, $152.3 million and $170.1 million as of 12/31/16, 9/30/16 and 12/31/15, respectively.

15

HANCOCK HOLDING COMPANY ASSET QUALITY INFORMATION (Unaudited)
|  | Three months ended
(dollars in thousands) |  | 12/31/2016 |  | 9/30/2016 |  | 6/30/2016 |  | 3/31/2016 |  | 12/31/2015
Nonaccrual loans (j) |  | $ | 317,970 |  |  | $ | 302,810 |  |  | $ | 265,722 |  |  | $ | 237,303 |  |  | $ | 159,713 |
Restructured loans - still accruing |  |  | 39,818 |  |  |  | 8,059 |  |  |  | 35,974 |  |  |  | 45,620 |  |  |  | 4,297 |
Total nonperforming loans |  |  | 357,788 |  |  |  | 310,869 |  |  |  | 301,696 |  |  |  | 282,923 |  |  |  | 164,010 |
ORE and foreclosed assets |  |  | 18,943 |  |  |  | 19,806 |  |  |  | 23,374 |  |  |  | 24,032 |  |  |  | 27,133 |
Total nonperforming assets |  | $ | 376,731 |  |  | $ | 330,675 |  |  | $ | 325,070 |  |  | $ | 306,955 |  |  | $ | 191,143 |
Nonperforming assets as a percent of loans, ORE and foreclosed assets |  |  | 2.25 | % |  |  | 2.06 | % |  |  | 2.02 | % |  |  | 1.92 | % |  |  | 1.22 | %
Accruing loans 90 days past due |  | $ | 3,039 |  |  | $ | 4,933 |  |  | $ | 7,982 |  |  | $ | 9,226 |  |  | $ | 7,653 |
Accruing loans 90 days past due as a percent of loans |  |  | 0.02 | % |  |  | 0.03 | % |  |  | 0.05 | % |  |  | 0.06 | % |  |  | 0.05 | %
Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets |  |  | 2.26 | % |  |  | 2.09 | % |  |  | 2.07 | % |  |  | 1.98 | % |  |  | 1.26 | %
Allowance for loan losses |  | $ | 229,418 |  |  | $ | 236,061 |  |  | $ | 226,086 |  |  | $ | 217,794 |  |  | $ | 181,179 |
Allowance for loan losses as a percent of period-end loans |  |  | 1.37 | % |  |  | 1.47 | % |  |  | 1.41 | % |  |  | 1.36 | % |  |  | 1.15 | %
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due |  |  | 63.58 | % |  |  | 74.75 | % |  |  | 73.01 | % |  |  | 74.55 | % |  |  | 105.54 | %
Provision for loan losses |  | $ | 14,455 |  |  | $ | 18,972 |  |  | $ | 17,196 |  |  | $ | 60,036 |  |  | $ | 50,196 |
NET CHARGE-OFF INFORMATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net charge-offs - non-purchased credit impaired: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans |  | $ | 13,495 |  |  | $ | 4,330 |  |  | $ | 3,685 |  |  | $ | 17,076 |  |  | $ | 2,465 |
Residential mortgage loans |  |  | (230 | ) |  |  | 299 |  |  |  | 238 |  |  |  | (126 | ) |  |  | 75 |
Consumer loans |  |  | 7,159 |  |  |  | 4,902 |  |  |  | 3,880 |  |  |  | 4,349 |  |  |  | 5,337 |
Total net charge-offs - non-purchased credit impaired |  | $ | 20,424 |  |  | $ | 9,531 |  |  | $ | 7,803 |  |  | $ | 21,299 |  |  | $ | 7,877 |
Net charge-offs - non-purchased credit impaired to average loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans |  |  | 0.44 | % |  |  | 0.14 | % |  |  | 0.12 | % |  |  | 0.59 | % |  |  | 0.09 | %
Residential mortgage loans |  |  | (0.04 | )% |  |  | 0.06 | % |  |  | 0.05 | % |  |  | (0.02 | )% |  |  | 0.01 | %
Consumer loans |  |  | 1.39 | % |  |  | 0.95 | % |  |  | 0.76 | % |  |  | 0.84 | % |  |  | 1.04 | %
Total net charge-offs - non-purchased credit impaired to average loans |  |  | 0.50 | % |  |  | 0.24 | % |  |  | 0.20 | % |  |  | 0.54 | % |  |  | 0.21 | %
AVERAGE LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans |  | $ | 12,182,553 |  |  | $ | 11,948,056 |  |  | $ | 11,990,672 |  |  | $ | 11,713,202 |  |  | $ | 11,128,872 |
Residential mortgage loans |  |  | 2,085,081 |  |  |  | 2,019,807 |  |  |  | 2,015,301 |  |  |  | 2,058,514 |  |  |  | 2,028,688 |
Consumer loans |  |  | 2,056,263 |  |  |  | 2,055,596 |  |  |  | 2,053,873 |  |  |  | 2,077,054 |  |  |  | 2,040,672 |
Total average loans |  | $ | 16,323,897 |  |  | $ | 16,023,458 |  |  | $ | 16,059,846 |  |  | $ | 15,848,770 |  |  | $ | 15,198,232 |
(j) Included in nonaccrual loans are nonaccruing restructured loans totaling $81.9 million, $48.2 million, $34.8 million, $18.3 million, and $8.8 million at 12/31/16, 9/30/16, 6/30/16, 3/31/16, and 12/31/15, respectively. Nonaccrual loans and accruing loans past due 90 days or more do not include purchased credit-impaired loans which were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan. Purchased credit impaired loans include loans covered by FDIC loss share agreement totaling $148.0 million, $152.3 million, $160.0 million, $168.1 million, and $170.1 million as of 12/31/16, 9/30/16, 6/30/16, 3/31/16, and 12/31/15, respectively. |

16

HANCOCK HOLDING COMPANY Appendix A To the Earnings Release Non-GAAP Measures Reconciliations
Core net interest income (TE) and core net interest margin (TE)
|  | Three months ended |  | Twelve months ended
(dollars in thousands) |  | 12/31/2016 |  | 9/30/2016 |  | 6/30/2016 |  | 3/31/2016 |  | 12/31/2015 |  | 12/31/2016 |  | 12/31/2015
Net interest income |  | $ | 167,798 |  | $ | 163,513 |  | $ | 164,969 |  | $ | 162,836 |  | $ | 158,395 |  | $ | 659,116 |  | $ | 625,174
Tax-equivalent adjustment (k) |  |  | 7,516 |  |  | 6,784 |  |  | 6,196 |  |  | 5,343 |  |  | 4,240 |  |  | 25,839 |  |  | 13,588
Net interest income (TE) |  | $ | 175,314 |  | $ | 170,297 |  | $ | 171,165 |  | $ | 168,179 |  | $ | 162,635 |  | $ | 684,955 |  | $ | 638,762
Purchase accounting adjustments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loan discount accretion (l) |  |  | 4,302 |  |  | 5,206 |  |  | 5,878 |  |  | 6,358 |  |  | 6,455 |  |  | 21,745 |  |  | 38,888
Net investment premium amortization (m) |  |  | (524) |  |  | (581) |  |  | (636) |  |  | (720) |  |  | (795) |  |  | (2,460) |  |  | (3,798)
Net purchase accounting accretion |  |  | 3,778 |  |  | 4,625 |  |  | 5,242 |  |  | 5,638 |  |  | 5,660 |  |  | 19,285 |  |  | 35,090
Net interest income (TE) - core |  | $ | 171,536 |  | $ | 165,672 |  | $ | 165,923 |  | $ | 162,541 |  | $ | 156,975 |  | $ | 665,670 |  | $ | 603,672
Average earning assets |  | $ | 21,462,188 |  | $ | 21,197,406 |  | $ | 21,147,029 |  | $ | 20,910,668 |  | $ | 20,140,432 |  | $ | 21,180,146 |  | $ | 19,173,322
Net interest margin (TE) - reported |  |  | 3.26% |  |  | 3.20% |  |  | 3.25% |  |  | 3.23% |  |  | 3.21% |  |  | 3.23% |  |  | 3.33%
Net purchase accounting adjustments |  |  | 0.07% |  |  | 0.08% |  |  | 0.10% |  |  | 0.11% |  |  | 0.11% |  |  | 0.09% |  |  | 0.19%
Net interest margin (TE) - core |  |  | 3.19% |  |  | 3.12% |  |  | 3.15% |  |  | 3.12% |  |  | 3.10% |  |  | 3.14% |  |  | 3.14%
Core revenue (TE) and core pre-tax, pre-provison income (TE)
|  | Three months ended |  | Twelve months ended
(dollars in thousands) |  | 12/31/2016 |  | 9/30/2016 |  | 6/30/2016 |  | 3/31/2016 |  | 12/31/2015 |  | 12/31/2016 |  | 12/31/2015
Net interest income |  | $ | 167,798 |  | $ | 163,513 |  | $ | 164,969 |  | $ | 162,836 |  | $ | 158,395 |  | $ | 659,116 |  | $ | 625,174
Noninterest income |  |  | 65,893 |  |  | 63,008 |  |  | 63,694 |  |  | 58,186 |  |  | 59,653 |  |  | 250,781 |  |  | 237,284
Total revenue |  | $ | 233,691 |  | $ | 226,521 |  | $ | 228,663 |  | $ | 221,022 |  | $ | 218,048 |  | $ | 909,897 |  | $ | 862,458
Tax-equivalent adjustment (k) |  |  | 7,516 |  |  | 6,784 |  |  | 6,196 |  |  | 5,343 |  |  | 4,240 |  |  | 25,839 |  |  | 13,588
Purchase accounting adjustments - revenue (n) |  |  | (2,538) |  |  | (3,088) |  |  | (3,716) |  |  | (4,026) |  |  | (3,948) |  |  | (13,367) |  |  | (29,343)
Core revenue (TE) |  | $ | 238,669 |  | $ | 230,217 |  | $ | 231,143 |  | $ | 222,339 |  | $ | 218,340 |  | $ | 922,369 |  | $ | 846,703
Noninterest expense |  |  | (156,283) |  |  | (149,058) |  |  | (150,942) |  |  | (156,032) |  |  | (156,030) |  |  | (612,315) |  |  | (619,655)
Intangible amortization |  |  | 4,766 |  |  | 4,886 |  |  | 5,005 |  |  | 5,124 |  |  | 5,691 |  |  | 19,781 |  |  | 24,184
Nonoperating items |  |  | - |  |  | - |  |  | - |  |  | 4,978 |  |  | - |  |  | 4,978 |  |  | 15,908
Core pre-tax, pre-provision income (TE) |  | $ | 87,152 |  | $ | 86,045 |  | $ | 85,206 |  | $ | 76,409 |  | $ | 68,001 |  | $ | 334,813 |  | $ | 267,140
(k) Tax equivalent (TE) amounts are calculated using a marginal federal income tax rate of 35%.
(l) Includes net loan discount accretion arising from the 2011 Whitney Holding Corporation and 2009 Peoples First Community bank acquisitions.
(m) Includes net investment premium amortization arising from the 2011 acquisition of Whitney Holding Corporation.
(n) Includes net loan discount accretion and net investment premium amorization as defined in (l) and (m) and amortization of the FDIC loss share receivable related to an FDIC assisted transaction.

17