Sharesof Hancock Holding Co.moved higher early on July 21 after the company's second-quarter beat theStreet's expectations on better-than-expected revenue growth and expensecontrol in the period.
Afterthe closing bell on July 20, Hancock reported net income for common shareholders of $46.9million, or 59 cents per share, in the second quarter, up from $34.8 million,or 44 cents per share, in the year-ago period.
TheS&P Capital IQ consensus normalized EPS estimate for the recent quarter was44 cents.
PiperJaffray analyst Peyton Green noted in a report reviewing the company's resultsthat the quarterly print should provide a "bounce" in Hancock's sharesdue to the strong operating leverage posted in the period.
RaymondJames analyst Michael Rose noted in a report that Hancock beat the Street'sexpectations across the board, with the company's net interest income, feerevenue, loan loss provision and noninterest expense all coming in better thanforecast.
Hancock'sstock jumped more than 6% at 11 a.m. EDT on July 21 on news of itssecond-quarter earnings.
Hancocksaid net interest income rose to $171.2 million in the second quarter from$168.2 million in the first quarter and $154.9 million a year earlier.Noninterest income rose to $63.7 million in the second quarter from $58.2million in the prior quarter and $60.9 million in the year-ago period.
Noninterestexpenses, meanwhile, declined to $150.9 million in the second quarter from$156.0 million in the linked quarter and $158.9 million one year ago.
Hancock'sprovision for loan losses totaled $17.2 million in the second quarter, downfrom $60.0 million in the prior quarter, but up from $6.6 million a yearearlier. The bank expects its provision for loan losses to be in the range of$105 million to $145 million for full year 2016. If energy prices remain wherethey are today, Hancock executives said on a conference call to discusssecond-quarter results that it could report toward the lower end of that range.
Hancockexpects expenses to grow by 2% or less in 2016, and suggested that the companyis on track to beat that expectation. Hancock maintained its expectation forend of period loans to grow 5% to 7% in full year 2016, though it said it has abias toward the lower end of the range due to paydowns on energy loans.