Hancock's third-quarter 2014 operating earnings outpaced the Zacks
Consensus Estimate. Prudent expense management and continuous
improvement in loans and deposits acted as tailwinds. However,
subdued top line continued to weigh down the results. We expect
Hancock's organic and inorganic growth strategies to pay off going
forward. Moreover, the company's steady liquidity position and
enhanced capital deployment activities remain impressive. Also,
restructuring initiatives being undertaken by the company are
expected to boost investors' confidence in the stock. Nonetheless,
persistent low interest rate environment along with increased
regulatory burden are likely to strain performance in the near
Based in Gulfport, MS, Hancock Holding Company is a bank holding
as well as financial holding company. The company operates through
roughly 236 full-service bank branches and about 300 automated
teller machines across the states of Mississippi, Alabama,
Louisiana, Florida and Texas.
Hancock is the parent company of two wholly owned bank
subsidiaries, Hancock Bank and Whitney Bank. Both these
subsidiaries operate in their hometown markets with strong brand
recognition. Hancock Bank owns and operates all branches in
Mississippi, Alabama and Florida while Whitney Bank owns and
operates all branches in Louisiana and Texas.
These two banks provide a wide range of community banking
services including a variety of transaction and savings deposit
products, treasury management services, investment brokerage
services, secured and unsecured loan products. On Mar 31, 2014, the
company combined two bank charters into a single one. Due to this
unification, there is now only one reportable segment, encompassing
the overall banking operations.
Further, Hancock provides other services through several
non-bank subsidiaries Hancock Investment Services, Inc. (offering
discount investment brokerage services), and Hancock Insurance
Agency and Whitney Insurance Agency (providing general insurance
agency services). Moreover, Harrison Finance Company provides
consumer financing services.
In 2009, Hancock acquired the assets and assumed the liabilities
of Panama City, FL-based Peoples First Community Bank in a
FDIC-assisted transaction, thereby adding nearly $2 billion in
In Jun 2011, Hancock acquired all of the outstanding common
stock of Whitney Holding Corporation in a cash and stock deal.
Whitney's bank subsidiary Whitney National Bank was merged into
Hancock Bank of Louisiana and renamed Whitney Bank. The acquisition
added $11.7 billion in assets, $6.5 billion in loans and $9.2
billion in deposits.
In Sep 2011, Hancock divested seven Whitney Bank branches
located on the Mississippi Gulf Coast and one branch located in
Bogalusa, LA, in order to resolve the branch concentration concerns
of the U.S. Department of Justice relating to the Whitney
In 2013, Hancock shuttered 38 branches across its five-state
In Apr 2014, Hancock divested part of its business within its
subsidiary insurance agencies to AssuredPartners Inc for $15.5
million. The lines of business included property and casualty
(P&C) and group benefits services.
As of Sep 30, 2014, Hancock held total assets of $20.0 billion,
total deposits of $15.7 billion, total loans of $13.3 billion and
total shareholders' equity of $2.5 billion.
Hancock Holding Company (HBHC): Read the Full
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