Financial holding company Hancock Holding Co. (HBHC), Tuesday announced first-quarter financial results, posting a decline in profit from the same quarter a year ago, hurt by the ongoing financial crisis and national economic recession.
Gulfport, Mississippi-based Hancock Holding's net income for the first quarter declined to $14.0 million or $0.44 per share from $20.05 million or $0.63 per share in the same quarter last year.
On average, 10 analysts polled by Thomson Reuters expected first-quarter earnings of $0.40 per share. Analysts' estimates typically exclude special items such as one time charges or gains.
Net interest income for the first quarter increased to $56.39 million from $52.88 million in the first quarter of last year, while net interest margin for the first quarter narrowed 30 basis points to 3.50% from the same quarter last year. Non-interest income, excluding securities transactions, came in at $29.05 million, marginally down from $30.76 million in the same quarter last year.
Wall Street analysts expected revenues of $87.57 million.
The company said it increased non-accrual loans by $8.4 million between year-end 2008 and March 31, 2009 and majority of this increase was concentrated in construction and land development loans and in commercial real estate. Hancock's average total loans for the first quarter increased 17.8% to $4.3 billion from the same quarter a year ago.
Operating expenses for the first quarter increased 11.4% to $5.7 million from the same quarter a year ago and this reflected in an increase in personnel expense, occupancy expense, and other operating expenses. These increases were partially offset by lower levels of equipment expense.
Hancock said provision for loan losses for the first quarter was $8.3 million and this combined with the quarter's net charge-offs of $7.1 million, resulted in a $1.2 million increase in the allowance for loan losses between December 31, 2008, and March 31, 2009.
Non-performing assets as a percentage of total loans and foreclosed assets was 1.04% at March 31, 2009, compared to 0.83% at December 31, 2008.
HBHC closed Tuesday's trading at $34.76, up $3.12 or 9.86% on a volume of 361k shares on the Nasdaq.
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