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Hancock Holding Company 10-Q 2008

Documents found in this filing:

  1. 10-Q
  2. Ex-31.1
  3. Ex-31.2
  4. Ex-32.1
  5. Ex-32.2
  6. Ex-32.2



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2008

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _____________________ to ________________________

 

 

 

 

Commission File Number

   0-13089


 

HANCOCK HOLDING COMPANY


(Exact name of registrant as specified in its charter)


 

 

 

Mississippi

 

64-0693170


 


(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification Number)

 

 

 

One Hancock Plaza, P.O. Box 4019, Gulfport, Mississippi

 

39502


 


(Address of principal executive offices)

 

(Zip Code)


 

(228) 868-4000


(Registrant’s telephone number, including area code)

 

NOT APPLICABLE


(Former name, address and fiscal year, if changed since last report)


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
                               Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer x          Accelerated filer o          Non-accelerated filer o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

                               Yes o  No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

31,407,603 common shares were outstanding as of July 31, 2008 for financial statement purposes.




Hancock Holding Company

Index

 

 

 

 

 

 

 

Page Number

 

 

 


Part I. Financial Information

 

 

 

 

 

ITEM 1.

Financial Statements

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets —
June 30, 2008 (unaudited) and December 31, 2007

 

1

 

 

 

 

 

Condensed Consolidated Statements of Income (unaudited) —
Three and six months ended June 30, 2008 and 2007

 

2

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity
(unaudited) – Six months ended June 30, 2008 and 2007

 

3

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows (unaudited) —
Six months ended June 30, 2008 and 2007

 

4

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements (unaudited) —
June 30, 2008

 

5-21

 

 

 

 

ITEM 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

22-34

 

 

 

 

ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

 

35

 

 

 

 

ITEM 4.

Controls and Procedures

 

35

 

 

 

 

Part II. Other Information

 

 

 

 

 

ITEM 1A.

Risk Factors

 

36

 

 

 

 

ITEM 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

36

 

 

 

 

ITEM 4.

Submission of Matters to a Vote of Security Holders

 

36

 

 

 

 

ITEM 6.

Exhibits

 

36

 

 

 

Signatures

 

37




Part I. Financial Information

Item 1. Financial Statements

Hancock Holding Company and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

June 30,
2008
(unaudited)

 

December 31,
2007

 

 

 


 


 

ASSETS

 

 

 

 

 

 

 

Cash and due from banks (non-interest bearing)

 

$

180,755

 

 

$

182,615

 

 

Interest-bearing time deposits with other banks

 

 

9,816

 

 

 

8,560

 

 

Federal funds sold

 

 

32

 

 

 

117,721

 

 

Trading securities

 

 

2,272

 

 

 

197,425

 

 

Securities available for sale, at fair value (amortized cost of $1,819,172 and $1,479,963)

 

 

1,805,323

 

 

 

1,480,196

 

 

Loans held for sale

 

 

28,808

 

 

 

18,957

 

 

Loans

 

 

3,802,346

 

 

 

3,612,883

 

 

Less: allowance for loan losses

 

 

(53,300

)

 

 

(47,123

)

 

   unearned income

 

 

(14,542

)

 

 

(16,326

)

 

 

 



 

 



 

 

Loans, net

 

 

3,734,504

 

 

 

3,549,434

 

 

Property and equipment, net of accumulated depreciation of $94,444 and $87,160

 

 

205,601

 

 

 

200,566

 

 

Other real estate, net

 

 

1,549

 

 

 

2,172

 

 

Accrued interest receivable

 

 

32,182

 

 

 

35,117

 

 

Goodwill, net

 

 

62,277

 

 

 

62,277

 

 

Other intangible assets, net

 

 

7,175

 

 

 

8,298

 

 

Life insurance contracts

 

 

143,510

 

 

 

139,421

 

 

Reinsurance receivables

 

 

30,555

 

 

 

34,827

 

 

Deferred tax asset, net

 

 

11,104

 

 

 

3,976

 

 

Other assets

 

 

14,653

 

 

 

14,417

 

 

 

 



 

 



 

 

Total assets

 

$

6,270,116

 

 

$

6,055,979

 

 

 

 



 

 



 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Non-interest bearing demand

 

$

894,544

 

 

$

907,874

 

 

Interest-bearing savings, NOW, money market and time

 

 

4,126,264

 

 

 

4,101,660

 

 

 

 



 

 



 

 

Total deposits

 

 

5,020,808

 

 

 

5,009,534

 

 

Federal funds purchased

 

 

19,495

 

 

 

4,100

 

 

Securities sold under agreements to repurchase

 

 

543,678

 

 

 

371,604

 

 

Long-term notes

 

 

717

 

 

 

793

 

 

Policy reserves and liabilities

 

 

51,218

 

 

 

58,489

 

 

Other liabilities

 

 

60,795

 

 

 

57,272

 

 

 

 



 

 



 

 

Total liabilities

 

 

5,696,711

 

 

 

5,501,792

 

 

Stockholders’ Equity

 

 

 

 

 

 

 

 

 

Common stock-$3.33 par value per share; 350,000,000 shares authorized, 31,385,870 and 31,294,607 issued and outstanding, respectively

 

 

104,515

 

 

 

104,211

 

 

Capital surplus

 

 

89,501

 

 

 

87,122

 

 

Retained earnings

 

 

402,543

 

 

 

377,481

 

 

Accumulated other comprehensive loss, net

 

 

(23,154

)

 

 

(14,627

)

 

 

 



 

 



 

 

Total stockholders’ equity

 

 

573,405

 

 

 

554,187

 

 

 

 



 

 



 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

6,270,116

 

 

$

6,055,979

 

 

 

 



 

 



 

 

See notes to unaudited condensed consolidated financial statements.

1



Hancock Holding Company and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 


 


 


 


 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

 

$

59,529

 

 

 

$

63,202

 

 

 

$

122,023

 

 

 

$

124,054

 

 

Securities - taxable

 

 

 

20,616

 

 

 

 

19,397

 

 

 

 

40,079

 

 

 

 

39,723

 

 

Securities - tax exempt

 

 

 

1,304

 

 

 

 

1,550

 

 

 

 

2,699

 

 

 

 

3,198

 

 

Federal funds sold

 

 

 

263

 

 

 

 

722

 

 

 

 

1,708

 

 

 

 

3,588

 

 

Other investments

 

 

 

42

 

 

 

 

66

 

 

 

 

58

 

 

 

 

83

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

Total interest income

 

 

 

81,754

 

 

 

 

84,937

 

 

 

 

166,567

 

 

 

 

170,646

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

25,556

 

 

 

 

31,884

 

 

 

 

56,173

 

 

 

 

64,714

 

 

Federal funds purchased and securities sold under agreements to repurchase

 

 

 

3,997

 

 

 

 

1,827

 

 

 

 

7,759

 

 

 

 

3,684

 

 

Long-term notes and other interest expense

 

 

 

40

 

 

 

 

10

 

 

 

 

51

 

 

 

 

21

 

 

Capitalized interest

 

 

 

(20

)

 

 

 

(327

)

 

 

 

(66

)

 

 

 

(717

)

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

Total interest expense

 

 

 

29,573

 

 

 

 

33,394

 

 

 

 

63,917

 

 

 

 

67,702

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

52,181

 

 

 

 

51,543

 

 

 

 

102,650

 

 

 

 

102,944

 

 

Provision for loan losses, net

 

 

 

2,787

 

 

 

 

1,238

 

 

 

 

11,605

 

 

 

 

2,449

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

Net interest income after provision for loan losses

 

 

 

49,394

 

 

 

 

50,305

 

 

 

 

91,045

 

 

 

 

100,495

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

 

10,879

 

 

 

 

10,471

 

 

 

 

21,669

 

 

 

 

19,662

 

 

Other service charges, commissions and fees

 

 

 

16,202

 

 

 

 

15,221

 

 

 

 

31,758

 

 

 

 

28,930

 

 

Securities gains, net

 

 

 

426

 

 

 

 

34

 

 

 

 

6,078

 

 

 

 

40

 

 

Other income

 

 

 

4,309

 

 

 

 

5,018

 

 

 

 

8,691

 

 

 

 

8,575

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

Total noninterest income

 

 

 

31,816

 

 

 

 

30,744

 

 

 

 

68,196

 

 

 

 

57,207

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

 

27,031

 

 

 

 

24,837

 

 

 

 

52,662

 

 

 

 

51,401

 

 

Net occupancy expense

 

 

 

4,702

 

 

 

 

4,469

 

 

 

 

9,303

 

 

 

 

8,542

 

 

Equipment rentals, depreciation and maintenance

 

 

 

2,785

 

 

 

 

2,768

 

 

 

 

5,694

 

 

 

 

5,041

 

 

Amortization of intangibles

 

 

 

364

 

 

 

 

384

 

 

 

 

729

 

 

 

 

807

 

 

Other expense

 

 

 

17,307

 

 

 

 

19,916

 

 

 

 

33,935

 

 

 

 

36,290

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

Total noninterest expense

 

 

 

52,189

 

 

 

 

52,374

 

 

 

 

102,323

 

 

 

 

102,081

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before income taxes

 

 

 

29,021

 

 

 

 

28,675

 

 

 

 

56,918

 

 

 

 

55,621

 

 

Income tax expense

 

 

 

8,037

 

 

 

 

8,352

 

 

 

 

15,877

 

 

 

 

16,068

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

Net income

 

 

$

20,984

 

 

 

$

20,323

 

 

 

$

41,041

 

 

 

$

39,553

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

Basic earnings per share

 

 

$

0.67

 

 

 

$

0.63

 

 

 

$

1.31

 

 

 

$

1.22

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

Diluted earnings per share

 

 

$

0.66

 

 

 

$

0.62

 

 

 

$

1.29

 

 

 

$

1.20

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

Dividends paid per share

 

 

$

0.240

 

 

 

$

0.240

 

 

 

$

0.480

 

 

 

$

0.480

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

Weighted avg. shares outstanding-basic

 

 

 

31,382

 

 

 

 

32,233

 

 

 

 

31,366

 

 

 

 

32,447

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

Weighted avg. shares outstanding-diluted

 

 

 

31,814

 

 

 

 

32,749

 

 

 

 

31,779

 

 

 

 

33,024

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

See notes to unaudited condensed consolidated financial statements.

2



Hancock Holding Company and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)
(In thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital
Surplus

 

Retained
Earnings

 

Accumulated
Other
Comprehensive
Loss, net

 

Total

 

 

 

 

 

 

 

Common Stock

 

 

 

Shares

 

Amount

 

 

 


 


 


 


 


 


 

Balance, January 1, 2007

 

 

32,666,052

 

$

108,778

 

$

139,099

 

 

$

334,546

 

 

 

$

(24,013

)

 

$

558,410

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per consolidated statements of income

 

 

 

 

 

 

 

 

 

39,553

 

 

 

 

 

 

 

39,553

 

Net change in unfunded accumulated benefit obligation, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

443

 

 

 

443

 

Net change in fair value of securities available for sale, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,785

)

 

 

(7,785

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32,211

 

Cash dividends declared ($0.480 per common share)

 

 

 

 

 

 

 

 

 

(15,654

)

 

 

 

 

 

 

(15,654

)

Common stock issued, long-term incentive plan, including income tax benefit of $96

 

 

88,826

 

 

296

 

 

433

 

 

 

 

 

 

 

 

 

 

729

 

Compensation expense, long-term incentive plan

 

 

 

 

 

 

1,070

 

 

 

 

 

 

 

 

 

 

1,070

 

Repurchase/retirement of common stock

 

 

(661,020

)

 

(2,201

)

 

(24,867

)

 

 

 

 

 

 

 

 

 

(27,068

)

 

 



 



 



 

 



 

 

 



 

 



 

Balance, June 30, 2007

 

 

32,093,858

 

$

106,873

 

$

115,735

 

 

$

358,445

 

 

 

$

(31,355

)

 

$

549,698

 

 

 



 



 



 

 



 

 

 



 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2008

 

 

31,294,607

 

$

104,211

 

$

87,122

 

 

$

377,481

 

 

 

$

(14,627

)

 

$

554,187

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per consolidated statements of income

 

 

 

 

 

 

 

 

 

41,041

 

 

 

 

 

 

 

41,041

 

Net change in unfunded accumulated benefit obligation, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

475

 

 

 

475

 

Net change in fair value of securities available for sale, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,002

)

 

 

(9,002

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32,514

 

SFAS 158, change in measurement date

 

 

 

 

 

 

 

 

 

(815

)

 

 

 

 

 

 

(815

)

Cash dividends declared ($0.480 per common share)

 

 

 

 

 

 

 

 

 

(15,164

)

 

 

 

 

 

 

(15,164

)

Common stock issued, long-term incentive plan, including income tax benefit of $150

 

 

91,263

 

 

304

 

 

1,066

 

 

 

 

 

 

 

 

 

 

1,370

 

Compensation expense, long-term incentive plan

 

 

 

 

 

 

1,313

 

 

 

 

 

 

 

 

 

 

1,313

 

 

 



 



 



 

 



 

 

 



 

 



 

Balance, June 30, 2008

 

 

31,385,870

 

$

104,515

 

$

89,501

 

 

$

402,543

 

 

 

$

(23,154

)

 

$

573,405

 

 

 



 



 



 

 



 

 

 



 

 



 

See notes to unaudited condensed consolidated financial statements.

3



Hancock Holding Company and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2008

 

2007

 

 

 


 


 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income

 

$

41,041

 

$

39,553

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

7,899

 

 

6,034

 

Provision for loan losses

 

 

11,605

 

 

2,449

 

Provision for losses on other real estate owned, net

 

 

2

 

 

(7

)

Loss/(gain) on sales of other real estate owned

 

 

121

 

 

(754

)

Deferred tax benefit

 

 

(2,334

)

 

(773

)

Increase in cash surrender value of life insurance contracts

 

 

(4,089

)

 

(2,531

)

Gain on sales/paydowns of securities available for sale, net

 

 

(2,695

)

 

(40

)

Gain on disposal of other assets

 

 

(663

)

 

(16

)

Gain on sale of loans held for sale

 

 

(224

)

 

(198

)

Gain on trading securities

 

 

(3,383

)

 

 

Amortization/(accretion) of securities premium/discount, net

 

 

843

 

 

(1,973

)

Amortization of mortgage servicing rights

 

 

111

 

 

179

 

Amortization of intangible assets

 

 

729

 

 

807

 

Stock-based compensation expense

 

 

1,313

 

 

1,070

 

Decrease (increase) in accrued interest receivable

 

 

2,935

 

 

(1,461

)

Increase (decrease) in accrued expenses

 

 

6,866

 

 

(2,602

)

Increase in other liabilities

 

 

504

 

 

986

 

Decrease in interest payable

 

 

(2,892

)

 

(1,047

)

Decrease in policy reserves and liabilities

 

 

(7,271

)

 

(11,204

)

Decrease in reinsurance receivable

 

 

4,272

 

 

3,545

 

Increase in other assets

 

 

(236

)

 

(2,137

)

Proceeds from sale of loans held for sale

 

 

100,290

 

 

129,892

 

Originations of loans held for sale

 

 

(109,917

)

 

(137,946

)

Proceeds from paydowns of securities held for trading

 

 

7,635

 

 

 

Excess tax benefit from share based payments

 

 

(92

)

 

(96

)

Other, net

 

 

18

 

 

691

 

 

 



 



 

Net cash provided by operating activities

 

 

52,388

 

 

22,421

 

 

 



 



 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Net increase in interest-bearing time deposits

 

 

(1,256

)

 

(2,419

)

Proceeds from sales of securities available for sale

 

 

3,045

 

 

8,969

 

Proceeds from maturities of securities available for sale

 

 

699,584

 

 

650,546

 

Purchases of securities available for sale

 

 

(849,081

)

 

(382,845

)

Net decrease (increase) in federal funds sold

 

 

117,689

 

 

27,914

 

Net increase in loans

 

 

(199,514

)

 

(170,422

)

Purchases of property and equipment

 

 

(14,730

)

 

(44,261

)

Proceeds from sales of property and equipment

 

 

1,802

 

 

204

 

Proceeds from sales of other real estate

 

 

3,340

 

 

1,180

 

 

 



 



 

Net cash (used in) provided by investing activities

 

 

(239,121

)

 

88,866

 

 

 



 



 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Net increase (decrease) in deposits

 

 

11,274

 

 

(53,321

)

Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase

 

 

187,469

 

 

(22,752

)

Repayments of long-term notes

 

 

(76

)

 

(5

)

Dividends paid

 

 

(15,164

)

 

(15,654

)

Proceeds from exercise of stock options

 

 

1,278

 

 

633

 

Repurchase/retirement of common stock

 

 

 

 

(27,068

)

Excess tax benefit from stock option exercises

 

 

92

 

 

96

 

 

 



 



 

Net cash (used in) provided by financing activities

 

 

184,873

 

 

(118,071

)

 

 



 



 

NET DECREASE IN CASH AND DUE FROM BANKS

 

 

(1,860

)

 

(6,784

)

CASH AND DUE FROM BANKS, BEGINNING

 

 

182,615

 

 

190,114

 

 

 



 



 

CASH AND DUE FROM BANKS, ENDING

 

$

180,755

 

$

183,330

 

 

 



 



 

SUPPLEMENTAL INFORMATION:

 

 

 

 

 

 

 

Income taxes paid

 

$

11,307

 

$

17,033

 

Interest paid, including capitalized interest of $66 and $717, respectively

 

 

66,809

 

 

68,750

 

Restricted stock issued to employees of Hancock

 

 

445

 

 

137

 

SUPPLEMENTAL INFORMATION FOR NON-CASH

 

 

 

 

 

 

 

INVESTING AND FINANCING ACTIVITIES

 

 

 

 

 

 

 

Transfers from loans to other real estate

 

$

3,240

 

$

915

 

Financed sale of foreclosed property

 

 

400

 

 

 

Transfers from trading securities to available for sale securities

 

 

190,802

 

 

 

See notes to unaudited condensed consolidated financial statements.

4



Hancock Holding Company and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)

1. Basis of Presentation

          The condensed consolidated financial statements of Hancock Holding Company and all majority-owned subsidiaries (the “Company”) included herein are unaudited; however, they include all adjustments all of which are of a normal recurring nature which, in the opinion of management, are necessary to present fairly the Company’s Condensed Consolidated Balance Sheets at June 30, 2008 and December 31, 2007, the Company’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2008 and 2007, the Company’s Condensed Consolidated Statements of Stockholders’ Equity and Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2008 and 2007. Although the Company believes the disclosures in these financial statements are adequate to make the interim information presented not misleading, certain information relating to the Company’s organization and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted in this Form 10-Q pursuant to Securities and Exchange Commission rules and regulations. These financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s 2007 Annual Report on Form 10-K. The results of operations for the six months ended June 30, 2008 are not necessarily indicative of the results expected for the full year.

          The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period and disclosure of contingent liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to allowance for loan losses, investments, intangible assets and goodwill, property and equipment, income taxes, insurance, employment benefits and contingent liabilities. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates.

          Certain reclassifications have been made to conform prior year financial information to the current period presentation. These reclassifications had no material impact on the unaudited condensed consolidated financial statements.

Critical Accounting Policies

          There have been no material changes or developments in the Company’s evaluation of accounting estimates and underlying assumptions or methodologies that the Company believes to be Critical Accounting Policies and Estimates as disclosed in our Form 10-K, for the year ended December 31, 2007.

5



Hancock Holding Company and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)

2. Fair Value of Assets

          The Company adopted Statement of Financial Accounting Standards (SFAS) No. 157, Fair Value Measurements (“SFAS No. 157”), on January 1, 2008. SFAS No. 157 establishes a framework for measuring fair value under generally accepted accounting principles (GAAP), clarifies the definition of fair value within that framework, and expands disclosures about the use of fair value measurements. SFAS No. 157 defines a fair value hierarchy that prioritizes the inputs to these valuation techniques used to measure fair value giving preference to quoted prices in active markets (level 1) and the lowest priority to unobservable inputs such as a reporting entity’s own data (level 3). Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in markets that are not active, observable inputs other than quoted prices, such as interest rates and yield curves, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. In addition, the Company adopted SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities - Including an Amendment SFAS No. 115 (“SFAS No. 159”), on January 1, 2008. The Company did not elect to fair value any additional items under SFAS No. 159. The Company, in accordance with Financial Accounting Standards Board Staff Position No. 157-2 “The Effective Date of FASB Statement No. 157”, will defer application of SFAS No. 157 for nonfinancial assets and nonfinancial liabilities until January 1, 2009.

          Fair Value of Assets Measured on a Recurring Basis

          The following table presents for each of the fair-value hierarchy levels the Company’s financial assets and liabilities that are measured at fair value (in thousands) on a recurring basis at June 30, 2008.

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Net Balance

 


Assets

 

 

 

 

 

 

 

 

 

 

U.S. agency securities

 

$

391,496

 

$

 

$

391,496

 

Mortgage backed securities

 

 

 

 

1,086,592

 

 

1,086,592

 

CMOs

 

 

 

 

145,475

 

 

145,475

 

Municipal bonds available for sale

 

 

 

 

181,760

 

 

181,760

 

Trading securities

 

 

2,272

 

 

 

 

2,272

 

Swaps

 

 

 

 

(1,042

)

 

(1,042

)

Loans carried at fair value

 

 

 

 

24,400

 

 

24,400

 


Total assets

 

$

393,768

 

$

1,437,185

 

$

1,830,953

 


          Fair Value of Assets Measured on a Nonrecurring Basis

          Certain assets and liabilities are measured at fair value on a non-recurring basis and therefore are not included in the table above. Impaired loans are level 2 assets measured using appraisals from external parties of the collateral less any prior liens. As of June 30, 2008, the fair value of impaired loans was $30.8 million.

6



 

Hancock Holding Company and Subsidiaries

Notes to Condensed Consolidated Financial Statements – (Continued)

(Unaudited)

3. Securities

          Available for Sale Securities

          For the six months ended June 30, 2008, the Company sold securities for a net gain of $2.7 million. Included in the net gain was a $2.8 million gross gain for the sale of securities as a result of the VISA IPO that occurred in the first quarter of 2008 and a gross loss of $99,468 that occurred in the second quarter of 2008 from Magna Insurance Company, a subsidiary of the Company, due to deterioration of the credit quality of an investment. For the six months ended June 30, 2007, Magna Insurance Company, sold thirty available for sale securities out of its portfolio to provide liquidity for surrenders of annuities for Magna Insurance Company. These securities had a gross loss of $37,164.

          Trading Securities

          For the six months ended June 30, 2008, the Company recognized $3.3 million in net gains, including a net gain of $3.2 million for the fair value adjustment at the date of the transfer of trading securities from trading to available for sale in the first quarter of 2008 because the Company intends to hold them for a longer period of time. There were no trading gains or losses in the first six months of 2007.

4. Loans and Allowance for Loan Losses

          Loans, net of unearned income, totaled $3.8 billion at June 30, 2008 and $3.6 billion at December 31, 2007. The Company also held $28.8 million and $19.0 million in loans held for sale at June 30, 2008 and December 31, 2007, respectively, carried at lower of cost or fair value. These loans are originated on a best-efforts basis, whereby a commitment by a third party to purchase the loan has been received concurrent with the Banks’ commitment to the borrower to originate the loan.

          In some instances, loans are placed on nonaccrual status. All accrued but uncollected interest related to the loan is deducted from income in the period the loan is assigned a nonaccrual status. For such period as a loan is in nonaccrual status, any cash receipts are applied first to principal, second to expenses incurred to cause payment to be made and lastly to the recovery of any reversed interest income and interest that would be due and owing subsequent to the loan being placed on nonaccrual status. Nonaccrual loans and foreclosed assets, which make up total non-performing assets, amounted to approximately 0.52% and 0.43% of total loans at June 30, 2008 and December 31, 2007, respectively. The amount of interest that would have been recognized on nonaccrual loans for the three and six months ended June 30, 2008 was approximately $276,000 and $537,000, respectively. The amount of interest that would have been recognized on nonaccrual loans for the three and six months ended June 30, 2007 was immaterial.

          The Company’s investments in impaired loans at June 30, 2008 and December 31, 2007 were $42.8 million and $43.5 million, respectively.

7



 

Hancock Holding Company and Subsidiaries

Notes to Condensed Consolidated Financial Statements – (Continued)

(Unaudited)

4. Loans and Allowance for Loan Losses (continued)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 


 


 


 


 

 

 

 

 

 

 

 

 

 

 

Balance of allowance for loan losses at beginning of period

 

$

53,008

 

$

46,517

 

$

47,123

 

$

46,772

 

Provision for loan losses, net

 

 

2,787

 

 

1,238

 

 

11,605

 

 

2,449

 

Loans charged-off:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, real estate and mortgage

 

 

981

 

 

978

 

 

2,016

 

 

1,481

 

Direct and indirect consumer

 

 

1,361

 

 

1,179

 

 

2,670

 

 

2,394

 

Finance company

 

 

945

 

 

648

 

 

2,197

 

 

1,281

 

Demand deposit accounts

 

 

681

 

 

716

 

 

1,282

 

 

1,441

 

 

 



 



 



 



 

Total charge-offs

 

 

3,968

 

 

3,521

 

 

8,165

 

 

6,597

 

 

 



 



 



 



 

Recoveries of loans previously charged-off:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, real estate and mortgage

 

 

320

 

 

1,064

 

 

521

 

 

1,375

 

Direct and indirect consumer

 

 

544

 

 

383

 

 

954

 

 

929

 

Finance company

 

 

234

 

 

123

 

 

438

 

 

267

 

Demand deposit accounts

 

 

375

 

 

423

 

 

824

 

 

1,032

 

 

 



 



 



 



 

Total recoveries

 

 

1,473

 

 

1,993

 

 

2,737

 

 

3,603

 

 

 



 



 



 



 

Net charge-offs

 

 

2,495

 

 

1,528

 

 

5,428

 

 

2,994

 

 

 



 



 



 



 

Balance of allowance for loan losses at end of period

 

$

53,300

 

$

46,227

 

$

53,300

 

$

46,227

 

 

 



 



 



 



 

          The following table presents the makeup of allowance for loan losses by:

 

 

 

 

 

 

 

 

 

 

June 30, 2008

 

December 31, 2007

 

 

 


 


 

 

 

(In thousands)

 

Balance of allowance for loan losses

 

 

 

Non-impaired

 

$

41,282

 

$

38,146

 

Impaired

 

 

12,018

 

 

8,977

 

 

 



 



 

Total allowance for loan losses

 

$

53,300

 

$

47,123

 

 

 



 



 

          As of June 30, 2008 and December 31, 2007, the Company had $24.4 million and $18.8 million, respectively, in loans carried at fair value.

8



Hancock Holding Company and Subsidiaries
Notes to Condensed Consolidated Financial Statements – (Continued)
(Unaudited)

4. Loans and Allowance for Loan Losses (continued)

          The following table sets forth, for the periods indicated, certain ratios related to the Company’s charge-offs, allowance for loan losses and outstanding loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 


 


 


 


 

Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average net loans (annualized)

 

 

0.27

%

 

0.18

%

 

0.30

%

 

0.18

%

Net charge-offs to period-end net loans (annualized)

 

 

0.26

%

 

0.18

%

 

0.29

%

 

0.18

%

Allowance for loan losses to average net loans

 

 

1.44

%

 

1.37

%

 

1.45

%

 

1.39

%

Allowance for loan losses to period-end net loans

 

 

1.41

%

 

1.35

%

 

1.41

%

 

1.35

%

Net charge-offs to loan loss allowance

 

 

4.68

%

 

3.31

%

 

10.18

%

 

6.48

%

Provision for loan losses to net charge-offs

 

 

111.70

%

 

81.02

%

 

213.80

%

 

81.80

%

5. Goodwill and Other Intangible Assets

          Goodwill represents costs in excess of the fair value of net assets acquired in connection with purchase business combinations. In accordance with the provisions of SFAS No. 142 Goodwill and Other Intangibles (“SFAS No. 142”), the Company tests its goodwill for impairment annually. No impairment charges were recognized as of June 30, 2008. The carrying amount of goodwill was $62.3 million as of June 30, 2008 and December 31, 2007.

          The following tables present information regarding the components of the Company’s identifiable intangible assets, and related amortization for the dates indicated (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of
June 30, 2008

 

As of
December 31, 2007

 

 

 


 


 

 

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Net

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Net

 

 

 


 


 


 


 


 


 

Amortizable intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core deposit intangibles

 

$

14,137

 

 

$

9,065

 

 

$

5,072

 

$

14,137

 

 

$

8,500

 

 

$

5,637

 

Value of insurance business acquired

 

 

2,752

 

 

 

1,158

 

 

 

1,594

 

 

3,757

 

 

 

1,807

 

 

 

1,950

 

Non-compete agreements

 

 

322

 

 

 

266

 

 

 

56

 

 

368

 

 

 

252

 

 

 

116

 

Trade name

 

 

100

 

 

 

60

 

 

 

40

 

 

100

 

 

 

50

 

 

 

50

 

 

 



 

 



 

 



 



 

 



 

 



 

Total

 

$

17,311

 

 

$

10,549

 

 

$

6,762

 

$

18,362

 

 

$

10,609

 

 

$

7,753

 

 

 



 

 



 

 



 



 

 



 

 



 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 


 


 


 


 

Aggregate amortization expense for:

 

 

 

 

 

 

 

 

 

 

 

 

 

Core deposit intangibles

 

$

283

 

 

$

331

 

 

$

565

 

 

$

605

 

 

Value of insurance businesses acquired

 

 

77

 

 

 

29

 

 

 

140

 

 

 

155

 

 

Non-compete agreements

 

 

(1

)

 

 

19

 

 

 

14

 

 

 

37

 

 

Trade name

 

 

5

 

 

 

5

 

 

 

10

 

 

 

10

 

 

 

 



 

 



 

 



 

 



 

 

Total

 

$

364

 

 

$

384

 

 

$

729

 

 

$

807

 

 

 

 



 

 



 

 



 

 



 

 

9



Hancock Holding Company and Subsidiaries
Notes to Condensed Consolidated Financial Statements – (Continued)
(Unaudited)

5. Goodwill and Other Intangible Assets (continued)

          The amortization period used for core deposit intangibles and value of insurance business acquired is 10 years. The amortization period used for non-compete agreements and trade name intangibles is 5 years. The following table shows estimated amortization expense of other intangible assets for the remainder of 2008, four succeeding years and thereafter, calculated based on current amortization schedules (in thousands):

 

 

 

 

 

2008

 

$

721

 

2009

 

 

1,435

 

2010

 

 

1,400

 

2011

 

 

1,161

 

2012

 

 

946

 

Thereafter

 

 

1,099

 

 

 



 

 

 

 

6,762

 

 

 



 

6. Mortgage Banking (including Mortgage Servicing Rights)

          The Company adopted SFAS No. 156, Accounting for Servicing of Financial Assets (“SFAS No. 156”) on January 1, 2007 without material impact. SFAS No. 156 requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable, and permits an entity to subsequently measure those servicing assets and servicing liabilities at fair value. Under SFAS No. 156, the Company decided to continue to use the amortization method instead of adopting the fair value measurement method. Management has determined that it has one class of servicing rights – mortgage servicing rights – which are based on the type of loan. The following are the risk characteristics of the underlying financial assets used to stratify servicing assets for purposes of measuring impairment: interest rate, type of product (fixed versus variable), duration and asset quality. The fair values of the mortgage servicing rights were $1.5 million and $1.8 million as of June 30, 2008 and December 31, 2007, respectively. The fair value was based upon Bloomberg prepayment speeds for the performing portion of the portfolio and actual prepayment speeds for the watch list portion of the portfolio. The following table shows the amounts (in thousands) of contractually specified fees for the three and six months ended June 30, 2008 and 2007, respectively:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 


 


 


 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing fees

 

 

$

137

 

 

 

$

160

 

 

 

$

280

 

 

 

$

326

 

 

Late fees

 

 

 

10

 

 

 

 

16

 

 

 

 

22

 

 

 

 

33

 

 

Ancillary fees

 

 

 

2

 

 

 

 

2

 

 

 

 

4

 

 

 

 

10

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

Total

 

 

$

149

 

 

 

$

178

 

 

 

$

306

 

 

 

$

369

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

          The gross carrying amount of mortgage servicing rights is equal to the net carrying amount. There were no valuation allowances on the mortgage servicing rights portfolio as of June 30, 2008 or December 31, 2007.

10



Hancock Holding Company and Subsidiaries
Notes to Condensed Consolidated Financial Statements – (Continued)
(Unaudited)

6. Mortgage Banking (including Mortgage Servicing Rights) (continued)

The changes in the carrying amounts of mortgage servicing rights as of June 30, 2008 and as of December 31, 2007 are as follows (in thousands):

 

 

 

 

 

 

 

 

 

Net Carrying
Amount

 

 

 


 

Balance as of December 31, 2006

 

 

$

941

 

 

Additions

 

 

 

9

 

 

Disposals

 

 

 

(60

)

 

Amortization

 

 

 

(345

)

 

 

 

 



 

 

Balance as of December 31, 2007

 

 

 

545

 

 

Disposals

 

 

 

(21

)

 

Amortization

 

 

 

(111

)

 

 

 

 



 

 

Balance as of June 30, 2008

 

 

$

413

 

 

 

 

 



 

 

          The following table shows estimated amortization expense of mortgage servicing rights for the remainder of 2008, the four succeeding years and thereafter, calculated based on current amortization schedules (in thousands):

 

 

 

 

 

2008

 

$

101

 

2009

 

 

145

 

2010

 

 

95

 

2011

 

 

50

 

2012

 

 

15

 

Thereafter

 

 

7

 

 

 



 

 

 

$

413

 

 

 



 

7. Earnings Per Share

          Following is a summary of the information used in the computation of earnings per common share (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

 

 


 


 


 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income - used in computation of earnings per share

 

 

$

20,984

 

 

 

$

20,323

 

 

 

$

41,041

 

 

 

$

39,553

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding - used in computation of basic earnings per share

 

 

 

31,382

 

 

 

 

32,233

 

 

 

 

31,366

 

 

 

 

32,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of dilutive securities Stock options and restricted stock awards

 

 

 

432

 

 

 

 

516

 

 

 

 

413

 

 

 

 

577

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding plus effect of dilutive securities - used in computation of diluted earnings per share

 

 

 

31,814

 

 

 

 

32,749

 

 

 

 

31,779

 

 

 

 

33,024

 

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

There were no anti-dilutive share-based incentives outstanding for the three and six months ended June 30, 2008. There were 60,585 and 42,347 anti-dilutive share-based incentives outstanding for the three and six months ened June 30, 2007, respectively.

11



Hancock Holding Company and Subsidiaries
Notes to Condensed Consolidated Financial Statements – (Continued)
(Unaudited)

8. Share-Based Payment Arrangements

Stock Option Plans

          At June 30, 2008, the Company had two stock option plans. The 1996 Hancock Holding Company Long-Term Incentive Plan (the “1996 Plan”) that was approved by the Company’s shareholders in 1996 was designed to provide annual incentive stock awards. Awards as defined in the 1996 Plan include, with limitations, stock options (including restricted stock options), restricted and performance shares, and performance stock awards, all on a stand-alone, combination or tandem basis. A total of fifteen million (15,000,000) common shares can be granted under the 1996 Plan with an annual grant maximum of two percent (2%) of the Company’s outstanding common stock as reported for the fiscal year ending immediately prior to such plan year. Grants of restricted stock awards are limited to one-third of the grant totals.

          The exercise price is equal to the market price on the date of grant, except for certain of those granted to major stockholders where the option price is 110% of the market price. Option awards generally vest based on five years of continuous service and have ten-year contractual terms. The Company’s policy is to issue new shares upon share option exercise and upon restricted stock award vesting. The 1996 Long-Term Incentive Plan expired in 2006 and no additional awards may be granted under the 1996 Plan.

          In March of 2005, the stockholders of the Company approved Hancock Holding Company’s 2005 Long-Term Incentive Plan (the “2005 Plan”). The 2005 Plan is designed to enable employees and directors to obtain a proprietary interest in the Company and to attract and retain outstanding personnel. The 2005 Plan provides that awards for up to an aggregate of five million (5,000,000) shares of the Company’s common stock may be granted during the term of the 2005 Plan. The 2005 Plan limits the number of shares for which awards may be granted during any calendar year to two percent (2%) of the outstanding Company’s common stock as reported for the fiscal year ending immediately prior to such plan year.

          The fair value of each option award is estimated on the date of grant using Black-Scholes-Merton option valuation model that uses the assumptions noted in the following table. Expected volatilities are based on implied volatilities from traded options on the Company’s stock, historical volatility of the Company’s stock and other factors. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

 

 

 

 

 

 

 

Six Months Ended June 30,
2008

 

 

 


 

Expected volatility

 

29.53

%

 

Expected dividends

 

2.60

%

 

Expected term (in years)

 

6.42

 

 

Risk-free rates

 

3.32

%

 

12



Hancock Holding Company and Subsidiaries
Notes to Condensed Consolidated Financial Statements – (Continued)
(Unaudited)

8. Share-Based Payment Arrangements (continued)

          A summary of option activity under the plans for the six months ended June 30, 2008, and changes during the six months then ended is presented below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options

 

Number of
Shares

 

Weighted-
Average
Exercise
Price ($)

 

Weighted-
Average
Remaining
Contractual
Term
(Years)

 

Aggregate
Intrinsic
Value ($000)

 


 


 


 


 


 

 

 

 

 

 

 

 

 

 

 

Outstanding at January 1, 2008

 

 

1,345,333

 

$

29.04

 

 

 

6.1

 

 

 

 

 

Granted

 

 

4,289

 

$

36.88

 

 

 

 

 

 

 

 

 

Exercised

 

 

(53,756

)

$

23.65

 

 

 

 

 

$

861

 

 

Forfeited or expired

 

 

(7,625

)

$

32.28

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at June 30, 2008

 

 

1,288,241

 

$

29.27

 

 

 

5.8

 

$

13,598

 

 

 

 



 



 

 



 



 

 

Exercisable at June 30, 2008

 

 

1,004,136

 

$

26.09

 

 

 

5.1

 

$

13,546