Hancock Holding in Gulfport, Miss., reported a lower third-quarter profit, citing a decline in net interest income and higher expenses.

The $21.6 billion-asset company said net income fell 11.6% to $41.2 million, or 52 cents per share, according to a news release.

Net interest income fell 4.1% to $156.8 million, led by a $13 million drop in purchase accounting income. Total loans rose 10.6% to $14.8 billion. The net interest margin shrank 53 basis points to 3.28%.

Hancock added $5 million, or about 5 cents per share, to its loan-loss provision to “build the energy reserve,” Chief Executive John Hairston said in the release.

Hancock “remain[s] confident that any credit losses we see today from the low oil prices are reserved for and should not be significant,” Hairston said.

Energy-related loans made up about $1.6 billion, or 11%, of Hancock's loan portfolio, at Sept. 30.

Fee income rose 3.9% to $60.2 million, on lower amortization of the bank's Federal Deposit Insurance Corp. loss-share receivable, and higher fees from investments and annuities, secondary mortgage operations and insurance commissions.

Noninterest expense rose 1.4% to $151.2 million on higher personnel costs and occupancy expense. The efficiency ratio worsened to 65.88%.

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