FOR IMMEDIATE RELEASE
April 22, 2008

Hancock Holding Company announces earnings for first quarter 2008

Highlights and key operating items from Hancock's first quarter earnings are as follows:


• Net Income and Returns: Hancock's net income for the first quarter of 2008 was $20.1 million compared to $19.2 million for the same quarter a year ago, an increase of $0.8 million, or 4.3 percent and an increase of $3.5 million, or 20.8 percent over the prior quarter. Return on average assets for the quarter was 1.30 percent compared to 1.11 percent for 2007's fourth quarter. Return on average common equity was 14.13 percent compared to 11.69 percent for the prior quarter.
  
  
• VISA Related: In the fourth quarter of 2007, Hancock recorded a $2.5 million pre-tax charge for liabilities related to VISA USA's anti-trust settlement with American Express and other pending VISA litigation (reflecting Hancock's share as a VISA member). In the first quarter of 2008 as part of VISA's initial public offering, VISA redeemed 37.5 percent of the shares held by Hancock, resulting in a $2.8 million pre-tax security gain to Hancock. In addition, VISA lowered its estimate of pending litigation settlements. Consequently, in the first quarter of 2008, the Company reversed $1.3 million of the $2.5 million litigation expense that was recorded in the fourth quarter.
  
  
• Other Security Gains: During the first quarter, the Company transferred certain securities from Trading to Available for Sale because it intends to hold them for a longer period of time. The Company recognized a $3.2 million pre-tax gain in the income statement for the fair value adjustment on trading securities as of the transfer date.
  
  
• Net Charge-offs and Non-performing Assets: Net charge-offs for the first quarter of 2008 were $2.9 million, or 0.32 percent of average loans, up $563 thousand from the $2.4 million, or 0.26 percent of average loans, reported for the fourth quarter of 2007. The majority of the increase in net charge-offs as compared to the fourth quarter was reflected in commercial real estate loans. Non-performing assets as a percent of total loans and foreclosed assets was 0.46 percent at March 31, 2008, compared to 0.43 percent at December 31, 2007. The Company did report a decrease in non-accrual loans of $84 thousand and additional ORE of $1.3 million as compared to the fourth quarter. Loans 90 days past due or greater (accruing) as a percent of period end loans decreased 3 basis points from December 31, 2007, to 0.09 percent at March 31, 2008.
  
  
• Allowance for Loan Losses: Reflective of the Company's conservative management philosophy, Hancock recorded a provision for loan losses of $8.8 million in the first quarter which, when combined with the quarter's net charge-offs of $2.9 million, resulted in a $5.9 million increase in the allowance for loan losses between December 31, 2007, and March 31, 2008. This increase was necessary to adjust the allowance to the level dictated by the Company's reserving methodologies and due to weakening within local markets. The Company's allowance for loan losses was $53.01 million at March 31, 2008, up $5.9 million from the $47.12 million reported at December 31, 2007. The ratio of the allowance for loan losses as a percent of period-end loans was 1.46 percent at March 31, 2008, as compared to the 1.31 percent reported at December 31, 2007.
  
  
• Loans: For the quarter ended March 31, 2008, Hancock's average total loans were $3.64 billion, which represented an increase of $346.0 million, or 11 percent, from the quarter ended March 31, 2007. Period-end loans were up $42.5 million, or 1 percent, compared to December 31, 2007. Average total loans were up $65 million, or 7 percent annualized, from the fourth quarter of 2007. Of that increase, approximately $15 million of growth was in Mississippi, $32 million in Louisiana, $17 million in Alabama, and $1 million in Florida.
  
  
• Deposits: Period-end deposits for the first quarter were $5.1 billion, up $220 million, or 4.5 percent, from March 31, 2007, and were up $134 million, or 2.7 percent, from December 31, 2007. Average deposits were up $105 million, or 8 percent annualized, from the fourth quarter of 2007. The increases in average deposits were in public funds (up $167 million) and interest-bearing transaction deposits (up $35.7 million). These increases were offset by decreases in time deposits (down $72.7 million), and non-interest bearing deposits (down $25.3 million).
  
  
• Net Interest Income: Net interest income (te) for the first quarter decreased $0.9 million, or 2 percent, from the first quarter of 2007, and was down $1.0 million from the fourth quarter of 2007, or 8 percent annualized. The Company did experience a moderate level of margin contraction in the first quarter as the net interest margin (te) of 3.80 percent was 24 basis points narrower than the same quarter a year ago. Growth in average earning asset levels were strong compared to the same quarter a year ago with an increase of $227 million, or 4 percent, mostly reflected in higher average loans (up $346 million, or 11 percent). With short-term interest rates down 300 basis points from a year ago, the Company's loan yield fell 58 basis points, with the yield on average earning assets down 36 basis points. However, total funding costs were down only 13 basis points as the severity of the recent rate cuts by the Federal Reserve were difficult to immediately be reflected in lower deposit rates. The first quarter net interest margin (te) also contracted 24 basis points as compared to the fourth quarter of 2007. Again, the positive impact of higher levels of average earning assets (up $248 million, or 5 percent) was offset by declines in the Company's loan and securities portfolio yields (down 41 and 20 basis points, respectively). Funding costs in the first quarter were down 21 basis points compared to the previous quarter. As the interest rate environment stabilizes, the Company's net interest margin should begin to widen and return to a more normalized level.
  
  
• Non-interest income: Non-interest income, excluding securities transactions, for the first quarter was up $4.3 million, or 16 percent, compared to the same quarter a year ago but was down $1.2 million, or 3.7 percent, compared to the previous quarter. The primary factors impacting the higher levels of non-interest income (excluding securities transactions), as compared to the same quarter a year ago, were higher levels of service charge income (up $1.6 million, or 17 percent), investment and annuity fees (up $831 thousand or 42 percent), trust revenue (up $482 thousand, or 13 percent), and ATM fees (up $311 thousand or 23 percent). The decrease in non-interest income (excluding securities transactions) for the first quarter compared to the prior quarter was primarily due to decreases in insurance fees (down $1.2 million or 22 percent), service charge income (down $392 thousand or 4 percent), and debit card fees (down $105 thousand or 4 percent). These decreases were slightly offset by increases in investment and annuity fees (up $311 thousand or 12 percent), other income (up $174 thousand or 5 percent), and ATM fees (up $65 thousand or 4 percent.)
  
  
• Operating expense: Operating expenses for the first quarter were $0.4 million, or 1 percent, higher compared to the same quarter a year ago but were $8.7 million, or 15 percent, lower than the previous quarter. The increase from the same quarter a year ago was reflected in higher levels of occupancy expense (up $528 thousand) and equipment expense (up $637 thousand), somewhat reflective of the Company's ongoing rebuilding efforts in the wake of the storm of 2005, but also due to the recent facilities opened in expansion markets (Mobile, Pensacola, and New Orleans). The decrease in operating expense from last quarter was due to the Company's continued focus on expense control and a full quarter's impact of the reduction in personnel implemented in the fourth quarter of 2007. The significant drivers of the lower levels of operating expense were reflected in personnel expense (down $1.4 million due to the absence of severance charges that were recognized in the previous quarter), occupancy expense (down $1.6 million), and other operating expense (down $5.9 million, reflective of $2.5 million in VISA accruals in the fourth quarter and a $1.3 million VISA reversal in the first quarter). Full-time equivalent headcount at March 31, 2008, was down 11 from December 31, 2007, and was down 52 compared to March 31, 2007.