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Hancock's (HBHC) Unit Buys Certain Assets of First NBC Bank
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Recently, Hancock Holding Company declared that its banking subsidiary, Whitney Bank, acquired certain assets and liabilities of First NBC Bank, a subsidiary of First NBC Bank Holding Company (FBNC - Free Report) , from the Federal Deposit Insurance Corporation (FDIC). The FDIC has been appointed the receiver on behalf of Louisiana Office of Financial Institutions.
Per the deal, Hancock acquired $1.6 billion in deposits and about $1 billion assets, which includes net cash of approximately $600 million. Further, the bank acquired 29 branch locations from First NBC, of which, 24 branches located in Louisiana will be part of Whitney Bank unit and the remaining five located in Florida will be operational under Hancock Bank unit.
The President and CEO of Hancock, Mr. John M. Hairston, in his statement assured the safety of deposits of former First NBC customers to be a priority for the company. Thus, the Certificates of Deposits, not acquired by the company, will be paid in full along with the interest accrued until Apr 28 by FDIC. The concerned depositors will receive the amount through checks that will be mailed to them May 1 onward.
This is not the first time Hancock has been involved in a deal with First NBC. In Dec 2016, it entered into an agreement to buy $1.3 billion of loans, $400 million of deposits and nine branches from First NBC. This was First NBC’s attempt to raise capital and avoid the risk of failure. This time, however, First NBC Bank has been ordered to be closed by the Louisiana Office of Financial Institution due to accounting issues reported by it.
Our Viewpoint
Hancock’s strong balance sheet position supports its involvement in such strategic acquisitions. In addition to helping Hancock in strengthening its footprint in Louisiana and Florida, the deal will likely be accretive to it earnings.
Notably, shares of the company gained 44.4% in the past six months, outpacing the 29.2% growth for the Zacks categorized Southeast Banks industry.
A couple of other stocks worth considering in the same space are Carolina Financial Corporation and Synovus Financial Corp. (SNV - Free Report) .
Carolina witnessed an upward earnings estimate revision of 2.3% for the current year, over the past 30 days. Its share price rose 62.8%, in the last one year. It currently holds a Zacks Rank #2 (Buy).
Synovus sports a Zacks Rank #1. For the current year, it witnessed an upward earnings estimate revision of 8.0%, over the past 30 days. Its share price increased 33.5%, in the last one year.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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Hancock's (HBHC) Unit Buys Certain Assets of First NBC Bank
Recently, Hancock Holding Company declared that its banking subsidiary, Whitney Bank, acquired certain assets and liabilities of First NBC Bank, a subsidiary of First NBC Bank Holding Company (FBNC - Free Report) , from the Federal Deposit Insurance Corporation (FDIC). The FDIC has been appointed the receiver on behalf of Louisiana Office of Financial Institutions.
Per the deal, Hancock acquired $1.6 billion in deposits and about $1 billion assets, which includes net cash of approximately $600 million. Further, the bank acquired 29 branch locations from First NBC, of which, 24 branches located in Louisiana will be part of Whitney Bank unit and the remaining five located in Florida will be operational under Hancock Bank unit.
The President and CEO of Hancock, Mr. John M. Hairston, in his statement assured the safety of deposits of former First NBC customers to be a priority for the company. Thus, the Certificates of Deposits, not acquired by the company, will be paid in full along with the interest accrued until Apr 28 by FDIC. The concerned depositors will receive the amount through checks that will be mailed to them May 1 onward.
This is not the first time Hancock has been involved in a deal with First NBC. In Dec 2016, it entered into an agreement to buy $1.3 billion of loans, $400 million of deposits and nine branches from First NBC. This was First NBC’s attempt to raise capital and avoid the risk of failure. This time, however, First NBC Bank has been ordered to be closed by the Louisiana Office of Financial Institution due to accounting issues reported by it.
Our Viewpoint
Hancock’s strong balance sheet position supports its involvement in such strategic acquisitions. In addition to helping Hancock in strengthening its footprint in Louisiana and Florida, the deal will likely be accretive to it earnings.
Notably, shares of the company gained 44.4% in the past six months, outpacing the 29.2% growth for the Zacks categorized Southeast Banks industry.
Currently, Hancock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
A couple of other stocks worth considering in the same space are Carolina Financial Corporation and Synovus Financial Corp. (SNV - Free Report) .
Carolina witnessed an upward earnings estimate revision of 2.3% for the current year, over the past 30 days. Its share price rose 62.8%, in the last one year. It currently holds a Zacks Rank #2 (Buy).
Synovus sports a Zacks Rank #1. For the current year, it witnessed an upward earnings estimate revision of 8.0%, over the past 30 days. Its share price increased 33.5%, in the last one year.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>.