We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hancock (HBHC) Beats Q4 Earnings Estimates, Revenues Up
Read MoreHide Full Article
Hancock Holding Company reported fourth-quarter 2016 earnings of 64 cents per share, surpassing the Zacks Consensus Estimate of 61 cents. Further, the reported figure is significantly higher than 19 cents per share earnings recorded in the prior-year quarter.
Better-than-expected results were primarily driven by an improvement in total revenues. Also, growth in loans and deposits continued to be strong. Further, an improvement in profitability and capital ratios acted as tailwinds. Additionally an energy-led fall in provisions helped release the burden to some extent.
Nevertheless, higher expenses and a rise in non-performing assets remained the undermining factors.
Net income for the quarter came in at $51.8 million, up significantly from the prior-year quarter.
The company reported full-year earnings per share of $1.87, up 14% year over year. However, the figure missed the Zacks Consensus Estimate of $1.89 per share. Also, 2016 net income came in at $149.3 million, up 13.6% from the prior year.
Hancock’s net revenue for the quarter summed $233.7 million, up 7.2% year over year. However, it lagged the Zacks Consensus Estimate of $234.8 million.
Net revenue for 2016 came in at $909.9 million, which lagged the Zacks Consensus Estimate of $929.3 million. However, the figure represents a rise of 5.5% from the prior year.
Quarterly net interest income grew 5.9% year over year to $167.8 million. Also, reported net interest margin (NIM) rose 5 basis points from the prior-year quarter to 3.26%.
Non-interest income totaled $65.9 million, up 10.5% from the year-ago quarter. The growth was driven by an improvement in all the components, except insurance commissions and fees, service charges on deposit accounts, and investment and annuity fees.
Total operating expenses increased marginally year over year to $156.3 million. The rise was primarily due to higher personnel and other operating expenses.
Credit Quality: Mixed Bag
Net charge-offs from the non-covered loan portfolio was 0.50% of average total loans, up from 0.21% in the year-ago quarter. Also, total nonperforming assets surged 97.1% year over year to $376.7 million.
However, provision for loan losses declined 71.2% year over year to $14.5 million thanks to the rebound in oil prices, which somewhat eased the concern related to the stressed energy sector.
Strong Balance Sheet; Profitability & Capital Ratios Improve
As of Dec 31, 2016, total loans grew 4.2% sequentially to $16.8 billion. Further, total deposits rose 2.9% from the prior month to $19.4 billion.
Return on average assets was 0.88%, up from 0.27% as of Dec 31, 2015. Moreover, as of Dec 31, 2016, return on average common equity was 8.19% compared with 2.48% as of Dec 31, 2015.
As of Dec 31, 2016, Tier 1 leverage ratio was 9.56%, up from 8.55% as of Dec 31, 2015. Further, Tier 1 risk-based capital ratio came in at 11.28%, up from 9.96% as of Dec 31, 2015.
Our Viewpoint
We believe Hancock’s organic and inorganic growth strategies will pay off going forward, supported by its efforts to restructure the business model. Also, the company’s steady liquidity and capital positions remain impressive. Further, the company's efforts to upgrade online banking facility are expected to lower expenses in the quarters ahead.
Hancock Holding Company Price, Consensus and EPS Surprise
Among other Southeast banking stocks, First Horizon National Corporation (FHN - Free Report) posted earnings per share of 23 cents for fourth-quarter 2016, lagging the Zacks Consensus Estimate of 25 cents. A fall in non-interest income was primarily responsible for the lower-than-expected results. The company also experienced poor capital ratios.
Regions Financial Corporation (RF - Free Report) is slated to report results on Jan 20 while BancorpSouth, Inc. is scheduled to report earnings on Jan 25.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Hancock (HBHC) Beats Q4 Earnings Estimates, Revenues Up
Hancock Holding Company reported fourth-quarter 2016 earnings of 64 cents per share, surpassing the Zacks Consensus Estimate of 61 cents. Further, the reported figure is significantly higher than 19 cents per share earnings recorded in the prior-year quarter.
Better-than-expected results were primarily driven by an improvement in total revenues. Also, growth in loans and deposits continued to be strong. Further, an improvement in profitability and capital ratios acted as tailwinds. Additionally an energy-led fall in provisions helped release the burden to some extent.
Nevertheless, higher expenses and a rise in non-performing assets remained the undermining factors.
Net income for the quarter came in at $51.8 million, up significantly from the prior-year quarter.
The company reported full-year earnings per share of $1.87, up 14% year over year. However, the figure missed the Zacks Consensus Estimate of $1.89 per share. Also, 2016 net income came in at $149.3 million, up 13.6% from the prior year.
Revenue Growth Offsets Higher Expenses
Hancock’s net revenue for the quarter summed $233.7 million, up 7.2% year over year. However, it lagged the Zacks Consensus Estimate of $234.8 million.
Net revenue for 2016 came in at $909.9 million, which lagged the Zacks Consensus Estimate of $929.3 million. However, the figure represents a rise of 5.5% from the prior year.
Quarterly net interest income grew 5.9% year over year to $167.8 million. Also, reported net interest margin (NIM) rose 5 basis points from the prior-year quarter to 3.26%.
Non-interest income totaled $65.9 million, up 10.5% from the year-ago quarter. The growth was driven by an improvement in all the components, except insurance commissions and fees, service charges on deposit accounts, and investment and annuity fees.
Total operating expenses increased marginally year over year to $156.3 million. The rise was primarily due to higher personnel and other operating expenses.
Credit Quality: Mixed Bag
Net charge-offs from the non-covered loan portfolio was 0.50% of average total loans, up from 0.21% in the year-ago quarter. Also, total nonperforming assets surged 97.1% year over year to $376.7 million.
However, provision for loan losses declined 71.2% year over year to $14.5 million thanks to the rebound in oil prices, which somewhat eased the concern related to the stressed energy sector.
Strong Balance Sheet; Profitability & Capital Ratios Improve
As of Dec 31, 2016, total loans grew 4.2% sequentially to $16.8 billion. Further, total deposits rose 2.9% from the prior month to $19.4 billion.
Return on average assets was 0.88%, up from 0.27% as of Dec 31, 2015. Moreover, as of Dec 31, 2016, return on average common equity was 8.19% compared with 2.48% as of Dec 31, 2015.
As of Dec 31, 2016, Tier 1 leverage ratio was 9.56%, up from 8.55% as of Dec 31, 2015. Further, Tier 1 risk-based capital ratio came in at 11.28%, up from 9.96% as of Dec 31, 2015.
Our Viewpoint
We believe Hancock’s organic and inorganic growth strategies will pay off going forward, supported by its efforts to restructure the business model. Also, the company’s steady liquidity and capital positions remain impressive. Further, the company's efforts to upgrade online banking facility are expected to lower expenses in the quarters ahead.
Hancock Holding Company Price, Consensus and EPS Surprise
Hancock Holding Company Price, Consensus and EPS Surprise | Hancock Holding Company Quote
At present, Hancock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Banks
Among other Southeast banking stocks, First Horizon National Corporation (FHN - Free Report) posted earnings per share of 23 cents for fourth-quarter 2016, lagging the Zacks Consensus Estimate of 25 cents. A fall in non-interest income was primarily responsible for the lower-than-expected results. The company also experienced poor capital ratios.
Regions Financial Corporation (RF - Free Report) is slated to report results on Jan 20 while BancorpSouth, Inc. is scheduled to report earnings on Jan 25.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>