(RTTNews) - Hancock Holding Co. (HBHC: News ), a bank holding company, reported Monday better-than-expected third-quarter earnings, which however was lower than last year, hurt in large part by increased provision for loan losses. Separately, the company announced the commencement of an underwritten registered public offering of approximately $150 million in common stock.

Hancock intends to use the net proceeds from the offering for general corporate purposes, which may include financing acquisition opportunities, and intends to grant the underwriters an option to purchase up to an additional 15% of the shares sold to cover over-allotments, if any.

Net income for the third quarter was $15.2 million, down 4.9% from $16 million in the corresponding period last year. Earnings per share were $0.47, down from $0.50 in the same period a year earlier.

On average, thirteen analysts polled by Thomson Reuters expected the company to report earnings of $0.46 per share for the quarter. Analysts' estimates typically exclude special items.

Net interest income rose to $60.75 million from $57.41 million in the corresponding period last year. Net interest margin declined to 3.86% from 3.99% in the year-ago quarter. Interest expense fell to $22 million from $29.4 million in the same period last year. Return on average assets was 0.87%, compared to 1% in the third quarter of 2008.

Total non-performing assets were $45.3 million, up from $24.07 million in the year-ago quarter. Non-performing assets as a percent of loans and foreclosed assets was 1.06% compared with 0.59% in the year-ago period.
Net charge-offs rose to $13.5 million from $4.2 million in the corresponding period last year. Net charge offs as a percent of average loans rose to 1.24% from 0.42% in the prior year quarter. Provision for losses increased to $13.5 million from $8.1 million in the year-ago quarter.

Average total loans were $4.3 billion, which represented an increase of $348.4 million or 8.8% from the same quarter a year ago. Period-end deposits for the third quarter were $5.4 billion, up $5.4 million from September 30, 2008.

Non-interest income, excluding securities transactions, increased marginally to $30.34 million from $30.19 million a year earlier helped by higher levels of service charges on deposit accounts, higher secondary mortgage market operations income and ATM fees, partially offset primarily by investment and annuity fees, trust fees and insurance fees.

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