Its loan-loss provision increased largely due to energy-related loans, but Hancock Holding in Gulfport, Miss., still reported higher third-quarter profits. Lower expenses and an increase in lending for healthcare, equipment finance and mortgages were the main reasons.
The $23 billion-asset company's net income rose 13% to $46.7 million from a year earlier. Revenue rose 4.4% to $226.5 million.
Net interest income before the provision rose 6.3% to $170.3 million. The loan-loss provision rose 88% to $19 million. Total loans rose 8.9% to $16.1 billion.
Energy loans as a percentage of all loans fell to 8.7%, or $1.4 billion, from 9.2% in the second quarter. Hancock recorded $5 million in chargeoffs of energy loans in the third quarter and has taken a total of $30 million in chargeoffs since the energy downturn began. Hancock expects it will ultimately record between $65 million and $95 million in chargeoffs tied to the energy sector.
Hancock noted that this fall's flooding in Louisiana, where it operates more than 100 branches, had no significant impact on its operations.
Noninterest income rose 4.6% to $63 million. Higher income from secondary mortgage market operations offset lower income from investment and annuity fees.
Noninterest expense fell 1.4% to $149.1 million on lower salaries and employee benefits and amortization of intangibles. The efficiency ratio improved 408 basis points to 61.8%.