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HBHC 4th qtr see's extraordinary asset growth & is taking market share from other banks

January 21, 2009 – Comments (2) | RELATED TICKERS: HBHC

Today looks like an opportunity to buy the longterm winner of this recession. There is always a winner in recessions and HBHC looks like the winner because it did not go crazy in 2003-2008 like other banks into subprimes.

Highlights & Key Operating Items from Hancock's Fourth Quarter Results

Balance Sheet Growth & Capital

Hancock continued to experience extraordinary asset growth as total assets at December 31, 2008, grew to $7.2 billion from $6.7 billion at September 30, 2008. The increase was even more dramatic compared to December 31, 2007, as total assets grew by over $1.1 billion, or 18.4 percent. All of the aforementioned growth in assets was organic as the Company did not record any acquisitions in the past year. Hancock also remains very well capitalized with total equity of $609.5 million at December 31, 2008, up $55.3 million, or 10.0 percent, from December 31, 2007. Hancock's tangible equity ratio at year end was 7.62 percent, still among the highest in Hancock's peer group and without the aid of government assistance.

Loan Growth

For the quarter ended December 31, 2008, Hancock's average total loans were $4.2 billion, which represented an increase of $613.4 million, or 17.2 percent, from 2007's fourth quarter and was up $234.2 million, or 5.9 percent from the third quarter of 2008. Period-end loans were up $176.5 million, or 4.3 percent, from last quarter. The majority of the period-end increase in loans was in municipal loans (up $71.5 million, or 17.4 percent), with smaller increases recorded in most other commercial and consumer loan categories. Of the $234.2 million increase in average loans, approximately $97.3 million was in Mississippi, $86.3 million in Louisiana, and $26.6 million and $24.0 million in Alabama and Florida, respectively.

Deposit Growth

Average deposits were up $510.8 million, or 10.0 percent, from the third quarter of 2008. The increase in average deposits was reflected mostly in time deposits (up $311.0 million) and public fund deposits (up $151.1 million). Period-end deposits for the fourth quarter were $5.9 billion, up $921.4 million, or 18.4 percent, from December 31, 2007, and were up $516.1 million, or 9.5 percent, from September 30, 2008. The large increase in period-end deposits as compared to September 30, 2008, was primarily in time deposits as well as public fund deposits.