Hancock to Reward Shareholders - Analyst Blog

By
A A A

In order to enhance shareholder value, Hancock Holding Company ( HBHC ) has announced a new capital deployment plan. Apart from declaring a regular quarterly cash dividend, the company authorized a new share repurchase program.

Hancock's board of directors authorized a buyback of up to 5% of common shares outstanding. As of Mar 31, 2013, the common shares outstanding were approximately 85 million.

Concurrently, Hancock announced a regular second quarter 2013 cash dividend of 24 cents per share. This dividend will be paid on Jun 14 to shareholders of record as of Jun 5.

Even through the financial crisis, when many large banks such as Bank of America Corporation ( BAC ), Citigroup Inc. ( C ) and JPMorgan Chase & Co. ( JPM ) reduced their dividends, Hancock maintained the same dividend level of 24 cents per share. Notably, the company has consistently paid this dividend since the third quarter of 2006, which was increased by 9% from the second quarter.

Hancock has been meaningfully deployed cash. In 2011, the company completed the acquisition of Whitney Holding Corporation. This transaction added $11.7 billion in assets, $6.5 billion in loans and $9.2 billion in deposits to the company's balance sheet. Moreover, the deal tremendously boosted its financial performance and improved market share as well.

We expect Hancock's organic and inorganic growth strategies, coupled with a stable liquidity position to be strong catalysts. Moreover, steady capital position and enhanced capital deployment actions are anticipated to raise investors' confidence in the stock. However, persistently rising operating expenses, a low rate environment and increased regulations are likely to marginally dent its performance in the near term.

Currently, Hancock carries a Zacks Rank #4 (Sell).



BANK OF AMER CP (BAC): Free Stock Analysis Report

CITIGROUP INC (C): Free Stock Analysis Report

HANCOCK HLDG CO (HBHC): Free Stock Analysis Report

JPMORGAN CHASE (JPM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: BAC , C , HBHC , JPM

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Avatars of the Luxe Life
Avatars of the Luxe Life            

Stocks

Referenced

73%
74%
100%
73%

Most Active by Volume

55,109,696
  • $6.74 ▲ 11.22%
38,002,181
  • $6.99 ▲ 4.33%
35,814,730
  • $17.415 ▲ 0.90%
35,556,021
  • $7.765 ▲ 1.64%
28,606,276
  • $111.455 ▲ 1.87%
28,209,249
  • $44.55 ▲ 8.24%
26,484,523
  • $103.60 ▲ 1.77%
24,607,248
  • $7.29 ▲ 3.85%
As of 12/18/2014, 12:43 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com