Hancock Holding in Gulfport, Miss., got a breather from oil issues that have plagued its bottom line in recent quarters.
The $23 billion-asset company said in a press release Wednesday that second-quarter profit rose 35% from a year earlier to $46.9 million, or 59 cents a share.
The company earned just $3.8 million in the first quarter, when it recorded a $60 million loan-loss provision, mostly to
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Hancock Holding in Gulfport, Miss., reported a steep drop in quarterly earnings that reflected ongoing energy woes.
April 19 -
Panic around energy lending has subsided somewhat as oil prices have climbed and banks have reduced their overall exposure. But expect more trouble ahead if prices level off.
July 19 -
The rise in oil prices in recent months is welcome news for the energy sector, but it doesn't mean that oil and gas firms and the banks that lend to them are out of the woods just yet.
June 16
The provision totaled $17 million in the second quarter, reflecting
Hancock refused to say that things had returned to normal, noting that the amount of risk in its loan portfolio, along with any future provisions or net chargeoffs, will "depend on overall oil prices and the duration of the cycle." The release warned of more chargeoffs, while assuring investors that the overall impact should "be manageable."
Net interest income increased by 8.5% to $165 million. Total loans rose by 12% to $16 billion. The net interest margin compressed by 5 basis points to 3.25%.
Noninterest income rose by 4.5% to $63.7 million, though it including $768,000 in securities gains.
Noninterest expense decreased by 5% to $151 million.