EX-99.1 2 hbhc-20180417xex99_1.htm EX-99.1

Exhibit 99.1

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For Immediate Release

April 17, 2018

For More Information

Trisha Voltz Carlson

EVP, Investor Relations Manager

504.299.5208

trisha.carlson@hancockwhitney.com

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Hancock reports first quarter 2018 EPS of $.83

Results include $7 million, or $.07 per share after tax, impact from nonoperating items

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GULFPORT, Miss. (April 17, 2018) — Hancock Holding Company (Nasdaq: HBHC) today announced its financial results for the first quarter of 2018. Net income for the first quarter of 2018 was $72.5 million, or $.83 per diluted common share (EPS), compared to $55.4 million, or $.64 EPS in the fourth quarter of 2017 and $49.0 million, or $.57 EPS, in the first quarter of 2017. The first quarter of 2018 includes $7.0 million ($.07 per share after-tax impact) of expenses related to the sale of Harrison Finance Company (HFC), the pending Capital One trust and asset management transaction, the brand consolidation project, and a one-time all hands bonus. The fourth quarter of 2017 included an estimated $19.5 million ($.22 per share impact) tax reform related re-measurement charge of the net deferred tax asset (DTA). The first quarter of 2017 nonoperating items included $6.5 million of acquisition costs related to the First NBC Bank (FNBC) transaction ($.05 per share), partially offset by a $4.4 million gain from the sale of selected Hancock Horizon funds ($.03 per share).

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Highlights of the company’s first quarter 2018 results (compared to fourth quarter 2017):

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| · |  | Reported earnings increased $17.0 million, or 31%; excluding the impact of the DTA re-measurement charge and nonoperating items, operating earnings increased $3.3 million, or 4%

| · |  | Loans increased $88 million, or 2%, linked-quarter annualized; net increase reflects a decline of $95 million related to the sale of the consumer finance company (HFC)

| · |  | Energy loans totaled $1.1 billion and comprised 5.5% of total loans; allowance for the energy portfolio totals $62.6 million, or 5.9% of energy loans

| · |  | Net interest margin (NIM) of 3.37%, down 11 bps; core NIM down 9 bps to 3.26%

| · |  | Operating expenses totaled $164.9 million, down 2% linked-quarter

| · |  | Efficiency ratio was 57.5% compared to 56.6% linked-quarter; the change is mainly related to the impact of tax reform on the TE adjustment

| · |  | Return on average assets (ROA) improved 26 bps to 1.08%; excluding nonoperating items and the 4Q17 DTA charge, operating ROA increased 7 bps to 1.17%

| · |  | Tangible common equity (TCE) ratio increased 7 bps to 7.80%

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“We are pleased with solid results for the first quarter of 2018,” said John M. Hairston, President & CEO. “Our reported ROA is above 1% and we accomplished another step towards achieving our newly announced corporate strategic objectives by realizing two of them this period – ROA (operating) of 1.17% and ROTCE (operating) of 15.56%. The positive impact from a lower provision for loan loss, lower operating expenses, and a lower tax rate led to those achievements, along with an improved level of operating EPS.

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Results also included the negative impact of tax reform on our TE income, the sale of our consumer finance business, typical first quarter seasonality and the impact of today’s rate environment on our capital ratios. However, even with those items, and the non-operating items related to an all-hands bonus and several significant projects, we made good progress toward attaining the new 2019 CSOs.”

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Loans

Total loans at March 31, 2018 were $19.1 billion, up approximately $88 million, or less than 1%, linked-quarter. Net growth reflects a decline of $95 million related to the sale of the consumer finance company during the first quarter. Net loan growth during the quarter continues to be diversified across the regions and also in areas identified as part of the company’s revenue-generating initiatives.

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Average loans totaled $19.0 billion for the first quarter of 2018, up $189 million, or 1%, linked-quarter.

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Energy

At March 31, 2018, loans to the energy industry totaled $1.1 billion, or 5.5% of total loans. The energy portfolio was relatively stable linked-quarter, 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 $76 million and charge-offs of $7.6 million were partially offset by approximately $85 million in fundings.

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Recent higher oil prices are helpful in the recovery of credits impacted by the energy cycle, however the key to resolution of many of those credits, especially in support services, is stabilization of prices over the longer term.

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Management continues to estimate that net charge-offs from energy-related credits could approximate up to $95 million over the duration of the cycle, of which approximately $81 million has been taken to-date. While we expect additional charge-offs in the portfolio, we continue to believe the impact of the energy cycle on our loan portfolio will be manageable, our reserve is adequate and our capital will remain solid.

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Deposits

Total deposits at March 31, 2018 were $22.5 billion, up $233 million, or 1%, from December 31, 2017.

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Noninterest-bearing demand deposits (DDAs) totaled $8.2 billion at March 31, 2018, down $77 million, or 1%, from December 31, 2017. DDAs comprised 37% of total period-end deposits at March 31, 2018.

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Interest-bearing transaction and savings deposits totaled $8.1 billion at the end of the first quarter of 2018, down $123 million, or 2%, from December 31, 2017. Time deposits of $3.1 billion were up $365 million, or 13%, while interest-bearing public fund deposits increased $68 million, or 2%, to $3.1 billion at March 31, 2018.

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Average deposits for the first quarter of 2018 were $22.0 billion, up $281 million, or 1%, linked-quarter.

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Asset Quality

Nonperforming assets (NPAs) totaled $468.3 million at March 31, 2018, up $67.5 million from December 31, 2017. During the first quarter of 2018, total nonperforming loans increased approximately $68.4 million, mainly related to an increase in restructured support nondrilling loans (TDRs), while foreclosed and surplus real estate (ORE) and other foreclosed assets decreased approximately $0.9 million. Nonperforming assets as a percent of total loans, ORE and other foreclosed assets was 2.45% at March 31, 2018, up 34 bps from December 31, 2017.

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The total allowance for loan losses (ALLL) was $210.7 million at March 31, 2018, down $6.6 million from December 31, 2017. The decline reflects the sale of the consumer finance company during the first quarter. The ratio of the allowance for loan losses to period-end loans was 1.10% at March 31, 2018, down 4 bps from 1.14% at December 31, 2017.

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The allowance for credits in the energy portfolio totaled $62.6 million, or 5.9% of energy loans, at March 31, 2018, as compared to $70.2 million, or 6.7% of energy loans, at December 31, 2017.

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Net charge-offs were $12.2 million, or 0.26% of average total loans on an annualized basis in the first quarter of 2018, down from $20.8 million, or 0.44% of average total loans in the fourth quarter of 2017. There were approximately $7.6 million of charge-offs related to energy credits in the first quarter of 2018, partially offset by energy-related recoveries of $3.3 million.

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During the first quarter of 2018, Hancock recorded a total provision for loan losses of $12.3 million, down from $15.0 million in the fourth quarter of 2017.

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Net Interest Income and Net Interest Margin (NIM)
Net interest income (TE) for the first quarter of 2018 was $209.6 million, down $7.4 million from the fourth quarter of 2017. The decrease is related to a $4.2 million negative impact of tax reform on the TE adjustment, a $1.7 million reversal of interest on nonaccrual loans, a $3.3 million reduction due to 2 fewer business days in the first quarter and a $1.5 million reduction in income related to the sale of the consumer finance company.

Average earning assets were $25.1 billion for the first quarter of 2018, up $294 million, or 1%, from the fourth quarter of 2017. The net interest margin (TE) was 3.37% for the first quarter of 2018, down 11 bps from the fourth quarter of 2017. The decline in the margin is related to an 8 bps negative impact on the TE adjustment from tax reform, a 3 bps negative impact from the reversal of interest on nonaccrual loans and a 2 bps negative impact related to the sale of the consumer finance company.

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Noninterest Income

Noninterest income totaled $66.3 million for the first quarter of 2018, down $3.4 million, or 5%, from the fourth quarter of 2017, and includes a loss on the sale of the consumer finance company of $1.1 million. Excluding the loss on the sale, noninterest income (operating) totaled $67.4 million, down $2.3 million, or 3%.

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Service charges on deposits totaled $21.4 million for the first quarter of 2018, down $1.0 million, or 4%, from the fourth quarter of 2017. Bank card and ATM fees totaled $14.5 million, up $0.2 million, or 2%, from the fourth quarter of 2017.

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Trust fees totaled $11.3 million, up $0.3 million, or 2% linked-quarter. Investment and annuity income and insurance fees totaled $6.1 million, up $0.3 million, or 6%, linked-quarter.

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Fees from secondary mortgage operations totaled $3.4 million for the first quarter of 2018, up $0.2 million, or 5%, linked-quarter.

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Other noninterest income totaled $10.6 million, down $2.2 million, or 17%, from the fourth quarter of 2017. Other noninterest income in the fourth quarter of 2017 included a $2.9 million gain related to a bulk sale of loans from the Peoples First acquisition.

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Noninterest Expense & Taxes
Noninterest expense for the first quarter of 2018 totaled $170.8 million, up $2.7 million, or 2%, from the fourth quarter of 2017, including $5.9 million of nonoperating expense related to the sale of the consumer finance company, the pending acquisition of Capital One’s trust and asset management business, the brand consolidation project, and a one-time all hands bonus. Excluding nonoperating items, operating expense totaled $164.9 million, down $3.1 million, or 2%. The discussion below excludes nonoperating items.

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Total personnel expense was $96.4 million in the first quarter of 2018, down $3.2 million, or 3%, from the fourth quarter of 2017. The decrease is mainly related to higher performance-based incentive pay in the fourth quarter, partly offset by higher seasonal personnel expense.

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Occupancy and equipment expense totaled $14.4 million in the first quarter of 2018, down $0.5 million, or 4%, from the fourth quarter of 2017.

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Amortization of intangibles totaled $5.6 million for the first quarter of 2018, down $0.3 million or 5% linked-quarter. ORE expense totaled $0.2 million in the first quarter of 2018, compared to net gains on ORE dispositions that exceeded ORE expense by $0.3 million in the fourth quarter of 2017. The first quarter reflects a more normal level of ORE expense.

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Other operating expense totaled $48.3 million in the first quarter of 2018, up $0.3 million, or 1%, from the fourth quarter of 2017.

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The effective income tax rate for the first quarter of 2018 was 18%. Management expects the tax rate in the second quarter of 2018 to approximate 18%. The effective income tax rate continues to be less than the statutory rate due primarily to tax-exempt income and tax credits.

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Capital

Common shareholders’ equity at March 31, 2018 totaled $2.9 billion, unchanged from year-end 2017. The tangible common equity (TCE) ratio was 7.80%, up 7 bps from December 31, 2017. Additional capital ratios are included in the financial tables.

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Conference Call and Slide Presentation

Management will host a conference call for analysts and investors at 9:00 a.m. Central Time on Wednesday, April 18, 2018 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 first quarter results are also posted as part of the webcast link. To participate in the Q&A portion of the call, dial (877) 564-1219 or (973) 638-3429. An audio archive of the conference call will be available under the Investor Relations section of our website. A replay of the call will also be available through April 25, 2018 by dialing (855) 859-2056 or (404) 537-3406, passcode 4289388.

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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.

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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 either in the financial tables or in Appendix A thereto.

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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 the statutory federal tax rate 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.

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The company presents certain additional non-GAAP financial measures to assist the reader with a better understanding of the company’s performance period over period, as well as to provide investors with assistance in understanding the success management has experienced in executing its strategic initiatives. These non-GAAP measures may reference the concepts “core” or “operating.” The company uses the term “core” to describe a financial measure that excludes income or expense arising from accretion or amortization of fair value adjustments recorded as part of purchase accounting. The company uses the term “operating” to describe a financial measure that excludes income or expense considered to be nonoperating in nature. Items identified as nonoperating are those that, when excluded from a reported financial measure, provide management or the reader with a measure that may be more indicative of forward-looking trends in the company’s business.

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We define Core Net Interest Income as net interest income (TE) excluding net purchase accounting accretion and amortization. We define Core Net Interest Margin as core net interest income 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.

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We define Operating Revenue as net interest income (TE) and noninterest income less nonoperating revenue. We define Operating Pre-Provision Net Revenue as operating revenue (TE) less noninterest expense, excluding nonoperating items. Management believes that operating pre-provision net revenue 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 reported net interest income to operating pre-provision net revenue is included in Appendix A.

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We define Operating Earnings as reported net income excluding nonoperating items net of income tax. We define Operating Earnings per Share as operating earnings expressed as an amount available to each common shareholder on a diluted basis. A reconciliation of reported net income to operating earnings is presented in the Income Statement table and a reconciliation of reported earnings per share – diluted to operating earnings per share – diluted is presented in Appendix A.

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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 sale of HFC on our performance and financial condition, the impact of the transactions with First NBC and Capital One (pending) on our performance and financial condition, including our ability to successfully integrate the businesses, 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, and the financial impact of regulatory requirements and tax reform legislation. 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.

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Forward-looking statements are subject to significant risks and uncertainties. Any forward-looking statement made in this release is subject to the safe harbor protections set forth in the Private Securities Litigation Reform Act of 1995. 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, 2017 and in other periodic reports that we file with the SEC.

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HANCOCK HOLDING COMPANY
QUARTERLY FINANCIAL HIGHLIGHTS
(Unaudited)
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﻿ |  | Three Months Ended
(dollars and common share data in thousands, except per share amounts) |  | 3/31/2018 |  | 12/31/2017 |  | 9/30/2017 |  | 6/30/2017 |  | 3/31/2017
NET INCOME |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 205,664 |  |  | $ | 208,047 |  |  | $ | 202,857 |  |  | $ | 199,717 |  |  | $ | 181,691 |
Net interest income (TE) (a) |  |  | 209,627 |  |  |  | 216,996 |  |  |  | 211,436 |  |  |  | 208,281 |  |  |  | 189,989 |
Provision for loan losses |  |  | 12,253 |  |  |  | 14,986 |  |  |  | 13,040 |  |  |  | 14,951 |  |  |  | 15,991 |
Noninterest income |  |  | 66,252 |  |  |  | 69,688 |  |  |  | 67,115 |  |  |  | 67,487 |  |  |  | 63,491 |
Noninterest expense |  |  | 170,791 |  |  |  | 168,063 |  |  |  | 177,616 |  |  |  | 183,470 |  |  |  | 163,542 |
Income tax expense |  |  | 16,397 |  |  |  | 39,237 |  |  |  | 20,414 |  |  |  | 16,516 |  |  |  | 16,635 |
Net income |  | $ | 72,475 |  |  | $ | 55,449 |  |  | $ | 58,902 |  |  | $ | 52,267 |  |  | $ | 49,014 |
Earnings excluding nonoperating items |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 72,475 |  |  | $ | 55,449 |  |  | $ | 58,902 |  |  | $ | 52,267 |  |  | $ | 49,014 |
Nonoperating items, net of income tax benefit |  |  | 5,782 |  |  |  | — |  |  |  | 7,405 |  |  |  | 6,902 |  |  |  | 1,372 |
Income tax resulting from re-measurement of deferred tax asset |  |  | — |  |  |  | 19,520 |  |  |  | — |  |  |  | — |  |  |  | — |
Operating earnings |  | $ | 78,257 |  |  | $ | 74,969 |  |  | $ | 66,307 |  |  | $ | 59,169 |  |  | $ | 50,386 |
PERIOD-END BALANCE SHEET DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 19,092,504 |  |  | $ | 19,004,163 |  |  | $ | 18,786,285 |  |  | $ | 18,473,841 |  |  | $ | 18,204,868 |
Securities |  |  | 5,930,076 |  |  |  | 5,888,380 |  |  |  | 5,624,552 |  |  |  | 5,668,836 |  |  |  | 5,001,273 |
Earning assets |  |  | 25,105,948 |  |  |  | 25,024,792 |  |  |  | 24,545,798 |  |  |  | 24,295,892 |  |  |  | 23,278,297 |
Total assets |  |  | 27,297,337 |  |  |  | 27,336,086 |  |  |  | 26,816,755 |  |  |  | 26,630,569 |  |  |  | 25,485,026 |
Noninterest-bearing deposits |  |  | 8,230,060 |  |  |  | 8,307,497 |  |  |  | 7,896,384 |  |  |  | 7,887,867 |  |  |  | 7,722,279 |
Total deposits |  |  | 22,485,722 |  |  |  | 22,253,202 |  |  |  | 21,533,859 |  |  |  | 21,442,815 |  |  |  | 19,922,020 |
Common shareholders' equity |  |  | 2,896,038 |  |  |  | 2,884,949 |  |  |  | 2,863,275 |  |  |  | 2,813,962 |  |  |  | 2,763,622 |
AVERAGE BALANCE SHEET DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 19,028,490 |  |  | $ | 18,839,537 |  |  | $ | 18,591,219 |  |  | $ | 18,369,446 |  |  | $ | 17,303,044 |
Securities (b) |  |  | 5,897,290 |  |  |  | 5,801,451 |  |  |  | 5,679,841 |  |  |  | 5,241,735 |  |  |  | 5,037,286 |
Earning assets |  |  | 25,106,283 |  |  |  | 24,812,676 |  |  |  | 24,487,426 |  |  |  | 24,338,130 |  |  |  | 22,770,001 |
Total assets |  |  | 27,237,077 |  |  |  | 26,973,507 |  |  |  | 26,677,573 |  |  |  | 26,526,253 |  |  |  | 24,756,506 |
Noninterest-bearing deposits |  |  | 7,951,121 |  |  |  | 8,095,563 |  |  |  | 7,775,913 |  |  |  | 7,769,932 |  |  |  | 7,462,258 |
Total deposits |  |  | 22,043,419 |  |  |  | 21,762,757 |  |  |  | 21,349,818 |  |  |  | 20,932,561 |  |  |  | 19,247,858 |
Common shareholders' equity |  |  | 2,872,813 |  |  |  | 2,867,475 |  |  |  | 2,838,517 |  |  |  | 2,786,566 |  |  |  | 2,733,089 |
COMMON SHARE DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings per share - diluted |  | $ | 0.83 |  |  | $ | 0.64 |  |  | $ | 0.68 |  |  | $ | 0.60 |  |  | $ | 0.57 |
Cash dividends per share |  |  | 0.24 |  |  |  | 0.24 |  |  |  | 0.24 |  |  |  | 0.24 |  |  |  | 0.24 |
Book value per share (period-end) |  |  | 33.96 |  |  |  | 33.86 |  |  |  | 33.78 |  |  |  | 33.21 |  |  |  | 32.70 |
Tangible book value per share (period-end) |  |  | 24.22 |  |  |  | 24.05 |  |  |  | 23.92 |  |  |  | 23.27 |  |  |  | 23.19 |
Weighted average number of shares - diluted |  |  | 85,423 |  |  |  | 85,303 |  |  |  | 84,980 |  |  |  | 84,867 |  |  |  | 84,624 |
Period-end number of shares |  |  | 85,285 |  |  |  | 85,200 |  |  |  | 84,767 |  |  |  | 84,738 |  |  |  | 84,517 |
Market data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
High sales price |  | $ | 56.40 |  |  | $ | 53.35 |  |  | $ | 50.40 |  |  | $ | 52.94 |  |  | $ | 49.50 |
Low sales price |  |  | 49.48 |  |  |  | 46.18 |  |  |  | 41.05 |  |  |  | 42.70 |  |  |  | 41.71 |
Period-end closing price |  |  | 51.70 |  |  |  | 49.50 |  |  |  | 48.45 |  |  |  | 49.00 |  |  |  | 45.55 |
Trading volume |  |  | 35,459 |  |  |  | 29,308 |  |  |  | 33,243 |  |  |  | 39,035 |  |  |  | 45,119 |
PERFORMANCE RATIOS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets |  |  | 1.08 | % |  |  | 0.82 | % |  |  | 0.88 | % |  |  | 0.79 | % |  |  | 0.80 | %
Return on average common equity |  |  | 10.23 | % |  |  | 7.67 | % |  |  | 8.23 | % |  |  | 7.52 | % |  |  | 7.27 | %
Return on average tangible common equity |  |  | 14.41 | % |  |  | 10.81 | % |  |  | 11.68 | % |  |  | 10.69 | % |  |  | 9.92 | %
Tangible common equity ratio (c) |  |  | 7.80 | % |  |  | 7.73 | % |  |  | 7.80 | % |  |  | 7.65 | % |  |  | 7.94 | %
Net interest margin (TE) (d) |  |  | 3.37 | % |  |  | 3.48 | % |  |  | 3.44 | % |  |  | 3.43 | % |  |  | 3.37 | %
Average loan/deposit ratio |  |  | 86.32 | % |  |  | 86.57 | % |  |  | 87.08 | % |  |  | 87.76 | % |  |  | 89.90 | %
Allowance for loan losses as a percent of period-end loans |  |  | 1.10 | % |  |  | 1.14 | % |  |  | 1.19 | % |  |  | 1.20 | % |  |  | 1.17 | %
Annualized net charge-offs to average loans |  |  | 0.26 | % |  |  | 0.44 | % |  |  | 0.25 | % |  |  | 0.13 | % |  |  | 0.70 | %
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due |  |  | 46.37 | % |  |  | 54.18 | % |  |  | 56.45 | % |  |  | 63.92 | % |  |  | 68.77 | %
Select performance measures excluding nonoperating items |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating earnings per share - diluted (d) |  | $ | 0.90 |  |  | $ | 0.86 |  |  | $ | 0.76 |  |  | $ | 0.68 |  |  | $ | 0.58 |
Return on average assets - operating |  |  | 1.17 | % |  |  | 1.10 | % |  |  | 0.99 | % |  |  | 0.89 | % |  |  | 0.83 | %
Return on average common equity - operating |  |  | 11.05 | % |  |  | 10.37 | % |  |  | 9.27 | % |  |  | 8.52 | % |  |  | 7.48 | %
Return on average tangible common equity - operating |  |  | 15.56 | % |  |  | 14.62 | % |  |  | 13.14 | % |  |  | 12.11 | % |  |  | 10.20 | %
Efficiency ratio (e) |  |  | 57.51 | % |  |  | 56.57 | % |  |  | 57.50 | % |  |  | 60.59 | % |  |  | 61.16 | %
Noninterest income as a percent of total revenue (TE) - operating |  |  | 24.33 | % |  |  | 24.31 | % |  |  | 24.09 | % |  |  | 24.47 | % |  |  | 23.74 | %
FTE headcount |  |  | 3,775 |  |  |  | 3,887 |  |  |  | 3,979 |  |  |  | 4,162 |  |  |  | 3,819 |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(a) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21% for the three months ended 3/31/2018, and 35% for all other periods presented.
(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) Refer to Appendix A for reconciliation of this non-GAAP measure.
(e) The efficiency ratio is noninterest expense to total net interest income (TE) and noninterest income, excluding amortization of purchased intangibles and nonoperating items.

7

﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HANCOCK HOLDING COMPANY
INCOME STATEMENT
(Unaudited)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  | Three Months Ended
(dollars in thousands, except per share data) |  | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017
NET INCOME |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 241,395 |  | $ | 239,173 |  | $ | 232,716 |  | $ | 226,177 |  | $ | 202,515 |
Interest income (TE) (f) |  |  | 245,358 |  |  | 248,122 |  |  | 241,295 |  |  | 234,741 |  |  | 210,813 |
Interest expense |  |  | 35,731 |  |  | 31,126 |  |  | 29,859 |  |  | 26,460 |  |  | 20,824 |
Net interest income (TE) |  |  | 209,627 |  |  | 216,996 |  |  | 211,436 |  |  | 208,281 |  |  | 189,989 |
Provision for loan losses |  |  | 12,253 |  |  | 14,986 |  |  | 13,040 |  |  | 14,951 |  |  | 15,991 |
Noninterest income |  |  | 66,252 |  |  | 69,688 |  |  | 67,115 |  |  | 67,487 |  |  | 63,491 |
Noninterest expense |  |  | 170,791 |  |  | 168,063 |  |  | 177,616 |  |  | 183,470 |  |  | 163,542 |
Income before income taxes |  |  | 88,872 |  |  | 94,686 |  |  | 79,316 |  |  | 68,783 |  |  | 65,649 |
Income tax expense |  |  | 16,397 |  |  | 39,237 |  |  | 20,414 |  |  | 16,516 |  |  | 16,635 |
Net income |  | $ | 72,475 |  | $ | 55,449 |  | $ | 58,902 |  | $ | 52,267 |  | $ | 49,014 |
Earnings excluding nonoperating items |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Income |  | $ | 72,475 |  | $ | 55,449 |  | $ | 58,902 |  | $ | 52,267 |  | $ | 49,014 |
Nonoperating income |  |  | 1,145 |  |  | — |  |  | — |  |  | — |  |  | (4,352) |
Nonoperating expense |  |  | 5,853 |  |  | — |  |  | 11,393 |  |  | 10,617 |  |  | 6,463 |
Income tax benefit |  |  | (1,216) |  |  | — |  |  | (3,988) |  |  | (3,715) |  |  | (739) |
Income tax resulting from re-measurement of deferred tax asset |  |  | — |  |  | 19,520 |  |  | — |  |  | — |  |  | — |
Nonoperating items, net of applicable income tax benefit |  |  | 5,782 |  |  | 19,520 |  |  | 7,405 |  |  | 6,902 |  |  | 1,372 |
Operating earnings |  | $ | 78,257 |  | $ | 74,969 |  | $ | 66,307 |  | $ | 59,169 |  | $ | 50,386 |
NONINTEREST INCOME |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service charges on deposit accounts |  | $ | 21,448 |  | $ | 22,455 |  | $ | 21,444 |  | $ | 20,061 |  | $ | 19,206 |
Trust fees |  |  | 11,335 |  |  | 11,079 |  |  | 10,742 |  |  | 11,506 |  |  | 11,211 |
Bank card and ATM fees |  |  | 14,458 |  |  | 14,234 |  |  | 13,390 |  |  | 13,687 |  |  | 12,468 |
Investment and insurance commissions, and annuity fees |  |  | 6,125 |  |  | 5,802 |  |  | 6,230 |  |  | 6,445 |  |  | 5,264 |
Secondary mortgage market operations |  |  | 3,401 |  |  | 3,244 |  |  | 4,157 |  |  | 4,241 |  |  | 3,567 |
Amortization of FDIC loss share receivable |  |  | — |  |  | — |  |  | — |  |  | (1,327) |  |  | (1,100) |
Other income |  |  | 10,630 |  |  | 12,874 |  |  | 11,152 |  |  | 12,874 |  |  | 8,523 |
Total operating noninterest income |  |  | 67,397 |  |  | 69,688 |  |  | 67,115 |  |  | 67,487 |  |  | 59,139 |
Nonoperating income |  |  | (1,145) |  |  | — |  |  | — |  |  | — |  |  | 4,352 |
Total noninterest income |  | $ | 66,252 |  | $ | 69,688 |  | $ | 67,115 |  | $ | 67,487 |  | $ | 63,491 |
NONINTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personnel expense (g) |  | $ | 96,366 |  | $ | 99,558 |  | $ | 97,023 |  | $ | 99,598 |  | $ | 92,072 |
Net occupancy and equipment expense |  |  | 14,436 |  |  | 14,968 |  |  | 15,728 |  |  | 16,767 |  |  | 14,470 |
Other real estate (income) expense, net |  |  | 210 |  |  | (340) |  |  | 199 |  |  | (1,004) |  |  | (13) |
Other operating expense (g) |  |  | 48,308 |  |  | 47,992 |  |  | 47,203 |  |  | 51,735 |  |  | 45,845 |
Amortization of intangibles |  |  | 5,618 |  |  | 5,885 |  |  | 6,070 |  |  | 5,757 |  |  | 4,705 |
Total operating expense |  |  | 164,938 |  |  | 168,063 |  |  | 166,223 |  |  | 172,853 |  |  | 157,079 |
Nonoperating expense |  |  | 5,853 |  |  | — |  |  | 11,393 |  |  | 10,617 |  |  | 6,463 |
Total noninterest expense |  | $ | 170,791 |  | $ | 168,063 |  | $ | 177,616 |  | $ | 183,470 |  | $ | 163,542 |
COMMON SHARE DATA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.83 |  | $ | 0.64 |  | $ | 0.68 |  | $ | 0.60 |  | $ | 0.57 |
Diluted |  |  | 0.83 |  |  | 0.64 |  |  | 0.68 |  |  | 0.60 |  |  | 0.57 |
Operating earnings per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted (h) |  | $ | 0.90 |  | $ | 0.86 |  | $ | 0.76 |  | $ | 0.68 |  | $ | 0.58 |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(f) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21% for the three months ended 3/31/2018, and 35% for all other periods presented.
(g) Prior period presentation reflects a reclassification of certain pension related costs between personnel expense and other noninterest expense in accordance with ASU 2017-07. |
(h) Refer to Appendix A for reconciliation of this non-GAAP measure. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

﻿

8

﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HANCOCK HOLDING COMPANY
PERIOD-END BALANCE SHEET
(Unaudited)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |
(dollars in thousands) |  | 3/31/2018 |  | 12/31/2017 |  | 9/30/2017 |  | 6/30/2017 |  | 3/31/2017
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial non-real estate loans |  | $ | 8,336,222 |  |  | $ | 8,297,937 |  |  | $ | 8,129,429 |  |  | $ | 8,093,104 |  |  | $ | 8,074,287 |
Commercial real estate - owner occupied |  |  | 2,185,543 |  |  |  | 2,142,439 |  |  |  | 2,076,014 |  |  |  | 2,078,332 |  |  |  | 2,047,451 |
Total commercial and industrial loans |  |  | 10,521,765 |  |  |  | 10,440,376 |  |  |  | 10,205,443 |  |  |  | 10,171,436 |  |  |  | 10,121,738 |
Commercial real estate - income producing |  |  | 2,394,862 |  |  |  | 2,384,599 |  |  |  | 2,511,808 |  |  |  | 2,401,673 |  |  |  | 2,505,104 |
Construction and land development loans |  |  | 1,413,878 |  |  |  | 1,373,421 |  |  |  | 1,373,048 |  |  |  | 1,313,522 |  |  |  | 1,252,667 |
Residential mortgage loans |  |  | 2,732,821 |  |  |  | 2,690,472 |  |  |  | 2,596,692 |  |  |  | 2,493,923 |  |  |  | 2,266,263 |
Consumer loans |  |  | 2,029,178 |  |  |  | 2,115,295 |  |  |  | 2,099,294 |  |  |  | 2,093,287 |  |  |  | 2,059,096 |
Total loans |  |  | 19,092,504 |  |  |  | 19,004,163 |  |  |  | 18,786,285 |  |  |  | 18,473,841 |  |  |  | 18,204,868 |
Loans held for sale |  |  | 21,827 |  |  |  | 39,865 |  |  |  | 23,236 |  |  |  | 26,787 |  |  |  | 20,883 |
Securities |  |  | 5,930,076 |  |  |  | 5,888,380 |  |  |  | 5,624,552 |  |  |  | 5,668,836 |  |  |  | 5,001,273 |
Short-term investments |  |  | 61,541 |  |  |  | 92,384 |  |  |  | 111,725 |  |  |  | 126,428 |  |  |  | 51,273 |
Earning assets |  |  | 25,105,948 |  |  |  | 25,024,792 |  |  |  | 24,545,798 |  |  |  | 24,295,892 |  |  |  | 23,278,297 |
Allowance for loan losses |  |  | (210,713) |  |  |  | (217,308) |  |  |  | (223,122) |  |  |  | (221,865) |  |  |  | (213,550) |
Goodwill |  |  | 745,523 |  |  |  | 745,523 |  |  |  | 739,403 |  |  |  | 740,265 |  |  |  | 716,761 |
Other intangible assets, net |  |  | 85,021 |  |  |  | 90,640 |  |  |  | 96,525 |  |  |  | 101,694 |  |  |  | 86,952 |
Other assets |  |  | 1,571,558 |  |  |  | 1,692,439 |  |  |  | 1,658,151 |  |  |  | 1,714,583 |  |  |  | 1,616,566 |
Total assets |  | $ | 27,297,337 |  |  | $ | 27,336,086 |  |  | $ | 26,816,755 |  |  | $ | 26,630,569 |  |  | $ | 25,485,026 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  | $ | 8,230,060 |  |  | $ | 8,307,497 |  |  | $ | 7,896,384 |  |  | $ | 7,887,867 |  |  | $ | 7,722,279 |
Interest-bearing transaction and savings deposits |  |  | 8,058,793 |  |  |  | 8,181,554 |  |  |  | 7,893,546 |  |  |  | 8,402,133 |  |  |  | 7,162,760 |
Interest-bearing public fund deposits |  |  | 3,108,008 |  |  |  | 3,040,318 |  |  |  | 2,762,048 |  |  |  | 2,537,030 |  |  |  | 2,595,263 |
Time deposits |  |  | 3,088,861 |  |  |  | 2,723,833 |  |  |  | 2,981,881 |  |  |  | 2,615,785 |  |  |  | 2,441,718 |
Total interest-bearing deposits |  |  | 14,255,662 |  |  |  | 13,945,705 |  |  |  | 13,637,475 |  |  |  | 13,554,948 |  |  |  | 12,199,741 |
Total deposits |  |  | 22,485,722 |  |  |  | 22,253,202 |  |  |  | 21,533,859 |  |  |  | 21,442,815 |  |  |  | 19,922,020 |
Short-term borrowings |  |  | 1,452,097 |  |  |  | 1,703,890 |  |  |  | 1,737,151 |  |  |  | 1,810,907 |  |  |  | 2,121,932 |
Long-term debt |  |  | 300,443 |  |  |  | 305,513 |  |  |  | 331,179 |  |  |  | 407,876 |  |  |  | 525,082 |
Other liabilities |  |  | 163,037 |  |  |  | 188,532 |  |  |  | 351,291 |  |  |  | 155,009 |  |  |  | 152,370 |
Total liabilities |  |  | 24,401,299 |  |  |  | 24,451,137 |  |  |  | 23,953,480 |  |  |  | 23,816,607 |  |  |  | 22,721,404 |
COMMON SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock net of treasury and capital surplus |  |  | 2,016,405 |  |  |  | 2,010,833 |  |  |  | 2,012,835 |  |  |  | 2,007,942 |  |  |  | 2,003,181 |
Retained earnings |  |  | 1,060,182 |  |  |  | 1,008,518 |  |  |  | 948,591 |  |  |  | 910,459 |  |  |  | 878,953 |
Accumulated other comprehensive income |  |  | (180,549) |  |  |  | (134,402) |  |  |  | (98,151) |  |  |  | (104,439) |  |  |  | (118,512) |
Total common shareholders' equity |  |  | 2,896,038 |  |  |  | 2,884,949 |  |  |  | 2,863,275 |  |  |  | 2,813,962 |  |  |  | 2,763,622 |
Total liabilities & shareholders' equity |  | $ | 27,297,337 |  |  | $ | 27,336,086 |  |  | $ | 26,816,755 |  |  | $ | 26,630,569 |  |  | $ | 25,485,026 |
CAPITAL RATIOS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tangible common equity |  | $ | 2,065,494 |  |  | $ | 2,048,787 |  |  | $ | 2,027,347 |  |  | $ | 1,972,003 |  |  | $ | 1,959,909 |
Tier 1 capital (i) |  |  | 2,276,454 |  |  |  | 2,214,723 |  |  |  | 2,167,917 |  |  |  | 2,119,895 |  |  |  | 2,119,125 |
Common equity (period-end) as a percent of total assets (period-end) |  |  | 10.61 | % |  |  | 10.55 | % |  |  | 10.68 | % |  |  | 10.57 | % |  |  | 10.84 | %
Tangible common equity ratio |  |  | 7.80 | % |  |  | 7.73 | % |  |  | 7.80 | % |  |  | 7.65 | % |  |  | 7.94 | %
Leverage (Tier 1) ratio (i) |  |  | 8.56 | % |  |  | 8.43 | % |  |  | 8.34 | % |  |  | 8.21 | % |  |  | 8.79 | %
Tier 1 risk-based capital ratio (i) |  |  | 10.47 | % |  |  | 10.21 | % |  |  | 10.10 | % |  |  | 10.01 | % |  |  | 10.16 | %
Total risk-based capital ratio (i) |  |  | 12.12 | % |  |  | 11.90 | % |  |  | 11.84 | % |  |  | 11.76 | % |  |  | 11.91 | %
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(i) Estimated for most recent period-end.

﻿

9

﻿ |  |  |  |  |  |  |  |  |  |  |
HANCOCK HOLDING COMPANY
AVERAGE BALANCE SHEET
(Unaudited)
﻿ |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Three Months Ended |  |
(dollars in thousands) |  | 3/31/2018 |  | 12/31/2017 |  | 3/31/2017 |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |
Commercial non-real estate loans |  | $ | 8,290,955 |  | $ | 8,171,016 |  | $ | 7,846,802 |  |
Commercial real estate - owner occupied |  |  | 2,160,596 |  |  | 2,102,635 |  |  | 1,943,771 |  |
Total commercial and industrial loans |  |  | 10,451,551 |  |  | 10,273,651 |  |  | 9,790,573 |  |
Commercial real estate - income producing |  |  | 2,383,906 |  |  | 2,451,823 |  |  | 2,137,890 |  |
Construction and land development loans |  |  | 1,388,913 |  |  | 1,370,617 |  |  | 1,130,165 |  |
Residential mortgage loans |  |  | 2,718,413 |  |  | 2,642,308 |  |  | 2,185,928 |  |
Consumer loans |  |  | 2,085,707 |  |  | 2,101,138 |  |  | 2,058,488 |  |
Total loans |  |  | 19,028,490 |  |  | 18,839,537 |  |  | 17,303,044 |  |
Loans held for sale |  |  | 32,194 |  |  | 22,231 |  |  | 21,328 |  |
Securities (j) |  |  | 5,897,290 |  |  | 5,801,451 |  |  | 5,037,286 |  |
Short-term investments |  |  | 148,309 |  |  | 149,457 |  |  | 408,343 |  |
Earning assets |  |  | 25,106,283 |  |  | 24,812,676 |  |  | 22,770,001 |  |
Allowance for loan losses |  |  | (216,796) |  |  | (225,769) |  |  | (226,503) |  |
Goodwill and other intangible assets |  |  | 833,269 |  |  | 833,162 |  |  | 729,766 |  |
Other assets |  |  | 1,514,321 |  |  | 1,553,438 |  |  | 1,483,242 |  |
Total assets |  | $ | 27,237,077 |  | $ | 26,973,507 |  | $ | 24,756,506 |  |
LIABILITIES AND COMMON SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  | $ | 7,951,121 |  | $ | 8,095,563 |  | $ | 7,462,258 |  |
Interest-bearing transaction and savings deposits |  |  | 8,043,176 |  |  | 7,927,250 |  |  | 6,897,660 |  |
Interest-bearing public fund deposits |  |  | 3,070,079 |  |  | 2,803,547 |  |  | 2,547,874 |  |
Time deposits |  |  | 2,979,043 |  |  | 2,936,397 |  |  | 2,340,066 |  |
Total interest-bearing deposits |  |  | 14,092,298 |  |  | 13,667,194 |  |  | 11,785,600 |  |
Total deposits |  |  | 22,043,419 |  |  | 21,762,757 |  |  | 19,247,858 |  |
Short-term borrowings |  |  | 1,823,033 |  |  | 1,763,189 |  |  | 2,127,256 |  |
Long-term debt |  |  | 305,117 |  |  | 312,719 |  |  | 458,050 |  |
Other liabilities |  |  | 192,695 |  |  | 267,367 |  |  | 190,253 |  |
Common shareholders' equity |  |  | 2,872,813 |  |  | 2,867,475 |  |  | 2,733,089 |  |
Total liabilities & shareholders' equity |  | $ | 27,237,077 |  | $ | 26,973,507 |  | $ | 24,756,506 |  |
﻿ |  |  |  |  |  |  |  |  |  |  |
(j) Average securities does not include unrealized holding gains/losses on available for sale securities.

﻿

10

﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HANCOCK HOLDING COMPANY
AVERAGE BALANCE AND NET INTEREST MARGIN SUMMARY
(Unaudited)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Three Months Ended
﻿ |  | 3/31/2018 |  | 12/31/2017 |  | 3/31/2017
(dollars in millions) |  | Average Balance |  | Interest |  | Rate |  | Average Balance |  | Interest |  | Rate |  | Average Balance |  | Interest |  | Rate
AVERAGE EARNING ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans (TE) (k) |  | $ | 14,224.4 |  | $ | 150.9 |  | 4.30 | % |  | $ | 14,096.1 |  | $ | 154.5 |  | 4.35 | % |  | $ | 13,058.7 |  | $ | 130.4 |  | 4.04 | %
Residential mortgage loans |  |  | 2,718.4 |  |  | 27.9 |  | 4.10 | % |  |  | 2,642.3 |  |  | 26.3 |  | 3.99 | % |  |  | 2,185.9 |  |  | 21.3 |  | 3.90 | %
Consumer loans |  |  | 2,085.7 |  |  | 29.0 |  | 5.64 | % |  |  | 2,101.1 |  |  | 29.8 |  | 5.63 | % |  |  | 2,058.5 |  |  | 26.6 |  | 5.24 | %
Loan fees & late charges |  |  | — |  |  | 0.5 |  | — | % |  |  | — |  |  | 0.6 |  | — | % |  |  | — |  |  | (0.1) |  | 0.00 | %
Total loans (TE) (l) |  |  | 19,028.5 |  |  | 208.3 |  | 4.43 | % |  |  | 18,839.5 |  |  | 211.2 |  | 4.46 | % |  |  | 17,303.1 |  |  | 178.2 |  | 4.16 | %
Loans held for sale |  |  | 32.2 |  |  | 0.2 |  | 2.75 | % |  |  | 22.2 |  |  | 0.2 |  | 3.28 | % |  |  | 21.3 |  |  | 0.2 |  | 4.08 | %
US Treasury and government agency securities |  |  | 148.4 |  |  | 0.8 |  | 2.21 | % |  |  | 144.5 |  |  | 0.8 |  | 2.21 | % |  |  | 116.3 |  |  | 0.6 |  | 2.04 | %
CMOs and mortgage backed securities |  |  | 4,785.3 |  |  | 27.9 |  | 2.33 | % |  |  | 4,682.2 |  |  | 26.2 |  | 2.24 | % |  |  | 3,975.2 |  |  | 22.1 |  | 2.22 | %
Municipals (TE) |  |  | 960.1 |  |  | 7.6 |  | 3.18 | % |  |  | 971.1 |  |  | 9.3 |  | 3.82 | % |  |  | 942.1 |  |  | 9.0 |  | 3.84 | %
Other securities |  |  | 3.5 |  |  | — |  | 2.06 | % |  |  | 3.7 |  |  | — |  | 2.03 | % |  |  | 3.7 |  |  | 0.0 |  | 1.96 | %
Total securities (TE) (m) |  |  | 5,897.3 |  |  | 36.3 |  | 2.46 | % |  |  | 5,801.5 |  |  | 36.3 |  | 2.50 | % |  |  | 5,037.3 |  |  | 31.7 |  | 2.52 | %
Total short-term investments |  |  | 148.3 |  |  | 0.5 |  | 1.34 | % |  |  | 149.5 |  |  | 0.4 |  | 1.07 | % |  |  | 408.3 |  |  | 0.7 |  | 0.74 | %
Average earning assets yield (TE) |  | $ | 25,106.3 |  |  | 245.3 |  | 3.95 | % |  | $ | 24,812.7 |  |  | 248.1 |  | 3.98 | % |  | $ | 22,770.0 |  |  | 210.8 |  | 3.74 | %
INTEREST-BEARING LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest-bearing transaction and savings deposits |  | $ | 8,043.2 |  |  | 9.1 |  | 0.46 | % |  | $ | 7,927.3 |  |  | 8.3 |  | 0.42 | % |  | $ | 6,897.7 |  |  | 4.5 |  | 0.27 | %
Time deposits |  |  | 2,979.0 |  |  | 9.7 |  | 1.32 | % |  |  | 2,936.4 |  |  | 8.7 |  | 1.17 | % |  |  | 2,340.0 |  |  | 5.1 |  | 0.89 | %
Public funds |  |  | 3,070.1 |  |  | 8.1 |  | 1.07 | % |  |  | 2,803.5 |  |  | 6.6 |  | 0.93 | % |  |  | 2,547.9 |  |  | 3.2 |  | 0.50 | %
Total interest-bearing deposits |  |  | 14,092.3 |  |  | 26.9 |  | 0.78 | % |  |  | 13,667.2 |  |  | 23.6 |  | 0.68 | % |  |  | 11,785.6 |  |  | 12.8 |  | 0.44 | %
Short-term borrowings |  |  | 1,823.1 |  |  | 5.4 |  | 1.17 | % |  |  | 1,763.2 |  |  | 4.1 |  | 0.92 | % |  |  | 2,127.3 |  |  | 2.9 |  | 0.56 | %
Long-term debt |  |  | 305.1 |  |  | 3.4 |  | 4.48 | % |  |  | 312.7 |  |  | 3.4 |  | 4.37 | % |  |  | 458.0 |  |  | 5.1 |  | 4.42 | %
Total borrowings |  |  | 2,128.2 |  |  | 8.8 |  | 1.66 | % |  |  | 2,075.9 |  |  | 7.5 |  | 1.45 | % |  |  | 2,585.3 |  |  | 8.0 |  | 1.24 | %
Total interest-bearing liabilities cost |  |  | 16,220.5 |  |  | 35.7 |  | 0.89 | % |  |  | 15,743.1 |  |  | 31.1 |  | 0.79 | % |  |  | 14,370.9 |  |  | 20.8 |  | 0.59 | %
Net interest-free funding sources |  |  | 8,885.8 |  |  |  |  |  |  |  |  | 9,069.6 |  |  |  |  |  |  |  |  | 8,399.1 |  |  |  |  |  |
Total cost of funds |  |  | 25,106.3 |  |  | 35.7 |  | 0.58 | % |  |  | 24,812.7 |  |  | 31.1 |  | 0.50 | % |  |  | 22,770.0 |  |  | 20.8 |  | 0.37 | %
Net Interest Spread (TE) |  |  |  |  | $ | 209.6 |  | 3.05 | % |  |  |  |  | $ | 217.0 |  | 3.19 | % |  |  |  |  |  | 190.0 |  | 3.15 | %
Net Interest Margin (TE) |  | $ | 25,106.3 |  | $ | 209.6 |  | 3.37 | % |  | $ | 24,812.7 |  | $ | 217.0 |  | 3.48 | % |  | $ | 22,770.0 |  | $ | 190.0 |  | 3.37 | %
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(k) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21% for the three months ended 3/31/2018, and 35% for all other periods presented.
(l) Includes nonaccrual loans.
(m) Average securities does not include unrealized holding gains/losses on available for sale securities.

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HANCOCK HOLDING COMPANY
ASSET QUALITY INFORMATION
(Unaudited)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Three Months Ended |
(dollars in thousands) |  | 3/31/2018 |  | 12/31/2017 |  | 3/31/2017 |
Nonaccrual loans (n) |  | $ | 275,179 |  |  | $ | 252,800 |  |  | $ | 262,649 |  |
Restructured loans - still accruing |  |  | 166,520 |  |  |  | 120,493 |  |  |  | 47,267 |  |
Total nonperforming loans |  |  | 441,699 |  |  |  | 373,293 |  |  |  | 309,916 |  |
ORE and foreclosed assets |  |  | 26,630 |  |  |  | 27,542 |  |  |  | 17,156 |  |
Total nonperforming assets |  | $ | 468,329 |  |  | $ | 400,835 |  |  | $ | 327,072 |  |
Nonperforming assets as a percent of loans, ORE and foreclosed assets |  |  | 2.45 | % |  |  | 2.11 | % |  |  | 1.79 | % |
Accruing loans 90 days past due |  | $ | 12,724 |  |  | $ | 27,766 |  |  | $ | 590 |  |
Accruing loans 90 days past due as a percent of loans |  |  | 0.07 | % |  |  | 0.15 | % |  |  | 0.00 | % |
Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets |  |  | 2.52 | % |  |  | 2.25 | % |  |  | 1.80 | % |
ALLOWANCE FOR LOAN LOSSES |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 217,308 |  |  | $ | 223,122 |  |  | $ | 229,418 |  |
Provision for loan losses |  |  | 12,253 |  |  |  | 14,986 |  |  |  | 15,991 |  |
Decrease in allowance as a result of sale of subsidiary |  |  | (6,648) |  |  |  | — |  |  |  | — |  |
Decrease in FDIC loss share receivable |  |  | — |  |  |  | — |  |  |  | (1,830) |  |
Charge-offs |  |  | (18,436) |  |  |  | (25,328) |  |  |  | (33,944) |  |
Recoveries |  |  | 6,236 |  |  |  | 4,528 |  |  |  | 3,915 |  |
Net charge-offs |  |  | (12,200) |  |  |  | (20,800) |  |  |  | (30,029) |  |
Ending Balance |  | $ | 210,713 |  |  | $ | 217,308 |  |  | $ | 213,550 |  |
Allowance for loan losses as a percent of period-end loans |  |  | 1.10 | % |  |  | 1.14 | % |  |  | 1.17 | % |
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due |  |  | 46.37 | % |  |  | 54.18 | % |  |  | 68.77 | % |
NET CHARGE-OFF INFORMATION |  |  |  |  |  |  |  |  |  |  |  |  |
Net charge-offs (recoveries) |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans |  | $ | 5,870 |  |  | $ | 14,017 |  |  | $ | 22,859 |  |
Residential mortgage loans |  |  | 76 |  |  |  | (371) |  |  |  | 235 |  |
Consumer loans |  |  | 6,254 |  |  |  | 7,154 |  |  |  | 6,935 |  |
Total net charge-offs |  | $ | 12,200 |  |  | $ | 20,800 |  |  | $ | 30,029 |  |
Net charge-offs (recoveries) as a percentage of average loans |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans |  |  | 0.17 | % |  |  | 0.39 | % |  |  | 0.71 | % |
Residential mortgage loans |  |  | 0.01 | % |  |  | (0.06) | % |  |  | 0.04 | % |
Consumer loans |  |  | 1.22 | % |  |  | 1.35 | % |  |  | 1.37 | % |
Total net charge-offs as a percentage of average loans |  |  | 0.26 | % |  |  | 0.44 | % |  |  | 0.70 | % |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |
(n) Included in nonaccrual loans are nonaccruing restructured loans totaling $ 118.0 million, $99.2 million, and $112.6 million at 3/31/2018, 12/31/17, and 3/31/17, 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.

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HANCOCK HOLDING COMPANY
ASSET QUALITY INFORMATION
(Unaudited)
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Three Months Ended
(dollars in thousands) |  | 3/31/2018 |  | 12/31/2017 |  | 9/30/2017 |  | 6/30/2017 |  | 3/31/2017
Nonaccrual loans (n) |  | $ | 275,179 |  |  | $ | 252,800 |  |  | $ | 269,676 |  |  | $ | 238,219 |  |  | $ | 262,649 |
Restructured loans - still accruing |  |  | 166,520 |  |  |  | 120,493 |  |  |  | 96,735 |  |  |  | 90,502 |  |  |  | 47,267 |
Total nonperforming loans |  |  | 441,699 |  |  |  | 373,293 |  |  |  | 366,411 |  |  |  | 328,721 |  |  |  | 309,916 |
ORE and foreclosed assets |  |  | 26,630 |  |  |  | 27,542 |  |  |  | 21,219 |  |  |  | 18,049 |  |  |  | 17,156 |
Total nonperforming assets |  | $ | 468,329 |  |  | $ | 400,835 |  |  | $ | 387,630 |  |  | $ | 346,770 |  |  | $ | 327,072 |
Nonperforming assets as a percent of loans, ORE and foreclosed assets |  |  | 2.45 | % |  |  | 2.11 | % |  |  | 2.06 | % |  |  | 1.88 | % |  |  | 1.79 | %
Accruing loans 90 days past due |  | $ | 12,724 |  |  | $ | 27,766 |  |  | $ | 28,850 |  |  | $ | 18,390 |  |  | $ | 590 |
Accruing loans 90 days past due as a percent of loans |  |  | 0.07 | % |  |  | 0.15 | % |  |  | 0.15 | % |  |  | 0.10 | % |  |  | 0.00 | %
Nonperforming assets + accruing loans 90 days past due to loans, ORE and foreclosed assets |  |  | 2.52 | % |  |  | 2.25 | % |  |  | 2.21 | % |  |  | 1.97 | % |  |  | 1.80 | %
Allowance for loan losses |  | $ | 210,713 |  |  | $ | 217,308 |  |  | $ | 223,122 |  |  | $ | 221,865 |  |  | $ | 213,550 |
Allowance for loan losses as a percentage of period-end loans |  |  | 1.10 | % |  |  | 1.14 | % |  |  | 1.19 | % |  |  | 1.20 | % |  |  | 1.17 | %
Allowance for loan losses to nonperforming loans + accruing loans 90 days past due |  |  | 46.37 | % |  |  | 54.18 | % |  |  | 56.45 | % |  |  | 63.92 | % |  |  | 68.77 | %
Provision for loan losses |  |  | 12,253 |  |  |  | 14,986 |  |  |  | 13,040 |  |  |  | 14,951 |  |  |  | 15,991 |
NET CHARGE-OFF INFORMATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net charge-offs (recoveries) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans |  | $ | 5,870 |  |  | $ | 14,017 |  |  | $ | 4,250 |  |  | $ | 901 |  |  | $ | 22,859 |
Residential mortgage loans |  |  | 76 |  |  |  | (371) |  |  |  | 1,651 |  |  |  | 260 |  |  |  | 235 |
Consumer loans |  |  | 6,254 |  |  |  | 7,154 |  |  |  | 5,882 |  |  |  | 4,779 |  |  |  | 6,935 |
Total net charge-offs |  | $ | 12,200 |  |  | $ | 20,800 |  |  | $ | 11,783 |  |  | $ | 5,940 |  |  | $ | 30,029 |
Net charge-offs (recoveries) as a percentage of average loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans |  |  | 0.17 | % |  |  | 0.39 | % |  |  | 0.12 | % |  |  | 0.03 | % |  |  | 0.71 | %
Residential mortgage loans |  |  | 0.01 | % |  |  | (0.06) | % |  |  | 0.26 | % |  |  | 0.04 | % |  |  | 0.04 | %
Consumer loans |  |  | 1.22 | % |  |  | 1.35 | % |  |  | 1.11 | % |  |  | 0.92 | % |  |  | 1.37 | %
Total net charge-offs as a percentage of average loans |  |  | 0.26 | % |  |  | 0.44 | % |  |  | 0.25 | % |  |  | 0.13 | % |  |  | 0.70 | %
AVERAGE LOANS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial & real estate loans |  | $ | 14,224,370 |  |  | $ | 14,096,091 |  |  | $ | 13,945,774 |  |  | $ | 13,890,054 |  |  | $ | 13,058,628 |
Residential mortgage loans |  |  | 2,718,413 |  |  |  | 2,642,308 |  |  |  | 2,549,338 |  |  |  | 2,399,422 |  |  |  | 2,185,928 |
Consumer loans |  |  | 2,085,707 |  |  |  | 2,101,138 |  |  |  | 2,096,107 |  |  |  | 2,079,970 |  |  |  | 2,058,488 |
Total average loans |  | $ | 19,028,490 |  |  | $ | 18,839,537 |  |  | $ | 18,591,219 |  |  | $ | 18,369,446 |  |  | $ | 17,303,044 |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(n) Included in nonaccrual loans are nonaccruing restructured loans totaling $ 118.0 million, $99.2 million, $119.7 million, $96.3 million, and $112.6 million at 3/31/2018, 12/31/17, 9/30/17, 6/30/17, and 3/31/17, 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.

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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
HANCOCK HOLDING COMPANY
Appendix A To the Earnings Release
Reconciliation of Non-GAAP Measures
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CORE NET INTEREST INCOME (TE) AND CORE NET INTEREST MARGIN (TE)
﻿ |  | Three Months Ended |
(dollars in thousands) |  | 3/31/2018 |  | 12/31/2017 |  | 9/30/2017 |  | 6/30/2017 |  | 3/31/2017 |
Net interest income |  | $ | 205,664 |  |  | $ | 208,047 |  |  | $ | 202,857 |  |  | $ | 199,717 |  |  | $ | 181,691 |  |
Taxable equivalent adjustment (o) |  |  | 3,963 |  |  |  | 8,949 |  |  |  | 8,579 |  |  |  | 8,564 |  |  |  | 8,298 |  |
Net interest income (TE) |  |  | 209,627 |  |  |  | 216,996 |  |  |  | 211,436 |  |  |  | 208,281 |  |  |  | 189,989 |  |
Purchase accounting adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loan discount accretion (p) |  |  | 7,108 |  |  |  | 8,280 |  |  |  | 7,711 |  |  |  | 8,801 |  |  |  | 5,017 |  |
Net investment premium amortization (q) |  |  | (315) |  |  |  | (320) |  |  |  | (364) |  |  |  | (398) |  |  |  | (454) |  |
Net purchase accounting accretion |  |  | 6,793 |  |  |  | 7,960 |  |  |  | 7,347 |  |  |  | 8,403 |  |  |  | 4,563 |  |
Net interest income (TE) - core |  | $ | 202,834 |  |  | $ | 209,036 |  |  | $ | 204,089 |  |  | $ | 199,878 |  |  | $ | 185,426 |  |
Average earning assets |  | $ | 25,106,283 |  |  | $ | 24,812,676 |  |  | $ | 24,487,426 |  |  | $ | 24,338,130 |  |  | $ | 22,770,001 |  |
Net interest margin (TE) |  |  | 3.37 | % |  |  | 3.48 | % |  |  | 3.44 | % |  |  | 3.43 | % |  |  | 3.37 | % |
Net purchase accounting adjustments |  |  | 0.11 | % |  |  | 0.13 | % |  |  | 0.12 | % |  |  | 0.14 | % |  |  | 0.08 | % |
Net interest margin (TE) - core |  |  | 3.26 | % |  |  | 3.35 | % |  |  | 3.32 | % |  |  | 3.29 | % |  |  | 3.29 | % |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OPERATING REVENUE (TE) AND OPERATING PRE-PROVISION NET REVENUE (TE)
﻿ |  | Three Months Ended |
(dollars in thousands) |  | 3/31/2018 |  | 12/31/2017 |  | 9/30/2017 |  | 6/30/2017 |  | 3/31/2017 |
Net interest income |  | $ | 205,664 |  |  | $ | 208,047 |  |  | $ | 202,857 |  |  | $ | 199,717 |  |  | $ | 181,691 |  |
Noninterest income |  |  | 66,252 |  |  |  | 69,688 |  |  |  | 67,115 |  |  |  | 67,487 |  |  |  | 63,491 |  |
Total revenue |  | $ | 271,916 |  |  | $ | 277,735 |  |  | $ | 269,972 |  |  | $ | 267,204 |  |  | $ | 245,182 |  |
Taxable equivalent adjustment |  |  | 3,963 |  |  |  | 8,949 |  |  |  | 8,579 |  |  |  | 8,564 |  |  |  | 8,298 |  |
Nonoperating revenue |  |  | 1,145 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (4,352) |  |
Operating revenue (TE) |  | $ | 277,024 |  |  | $ | 286,684 |  |  | $ | 278,551 |  |  | $ | 275,768 |  |  | $ | 249,128 |  |
Noninterest expense |  |  | (170,791) |  |  |  | (168,063) |  |  |  | (177,616) |  |  |  | (183,470) |  |  |  | (163,542) |  |
Nonoperating expense |  |  | 5,853 |  |  |  | — |  |  |  | 11,393 |  |  |  | 10,617 |  |  |  | 6,463 |  |
Operating pre-provision net revenue (TE) |  | $ | 112,086 |  |  | $ | 118,621 |  |  | $ | 112,328 |  |  | $ | 102,915 |  |  | $ | 92,049 |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OPERATING EARNINGS PER SHARE - DILUTED
﻿ |  |  | Three Months Ended
(in thousands, except per share amounts) |  |  | 3/31/2018 |  | 12/31/2017 |  | 9/30/2017 |  | 6/30/2017 |  | 3/31/2017
Net Income |  | $ | 72,475 |  |  | $ | 55,449 |  |  | $ | 58,902 |  |  | $ | 52,267 |  |  | $ | 49,014 |  |
Net income allocated to participating securities |  |  | (1,366) |  |  |  | (1,104) |  |  |  | (1,244) |  |  |  | (1,166) |  |  |  | (1,156) |  |
Net income available to common shareholders |  |  | 71,109 |  |  |  | 54,345 |  |  |  | 57,658 |  |  |  | 51,101 |  |  |  | 47,858 |  |
Nonoperating items, net of applicable income tax |  |  | 5,782 |  |  |  | 19,520 |  |  |  | 7,405 |  |  |  | 6,902 |  |  |  | 1,372 |  |
Nonoperating items allocated to participating securities |  |  | (109) |  |  |  | (390) |  |  |  | (156) |  |  |  | (154) |  |  |  | (32) |  |
Operating earnings available to common shareholders |  | $ | 76,782 |  |  | $ | 73,475 |  |  | $ | 64,907 |  |  | $ | 57,849 |  |  | $ | 49,198 |  |
Weighted average common shares - diluted |  |  | 85,423 |  |  |  | 85,303 |  |  |  | 84,980 |  |  |  | 84,867 |  |  |  | 84,624 |  |
Earnings per share - diluted |  | $ | 0.83 |  |  | $ | 0.64 |  |  | $ | 0.68 |  |  | $ | 0.60 |  |  | $ | 0.57 |  |
Operating earnings per share - diluted |  | $ | 0.90 |  |  | $ | 0.86 |  |  | $ | 0.76 |  |  | $ | 0.68 |  |  | $ | 0.58 |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(o) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21% for the three months ended 3/31/2018, and 35% for all other periods presented.
(p) Includes net loan discount accretion arising from business combinations.
(q) Includes net investment premium amortization arising from business combinations.

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