Hancock Holding Co.'s second-quarter earnings rose 86% in the first results since it acquired fellow Gulf Coast bank Whitney Holding Corp.
Last month, Hancock closed its all-stock takeover of Whitney in a deal valued at $1.3 billion. The acquisition of what Moody's Investors Service called a "large and troubled bank" provoked the agency to downgrade Hancock. It noted that Whitney lost money for the last two years and continues to have high levels of nonperforming assets.
Thursday, Chief Executive Carl J. Chaney said the latest results "reflect only a piece of what Whitney brings to the combined company." He said integration was on track, with cost savings already beginning to take effect.
Hancock posted a profit of $12.1 million, or 22 cents a share, from $6.5 million, or 17 cents a share, a year earlier. Analysts surveyed by Thomson Reuters predicted earnings of 41 cents a share.
Net interest income rose 43%.
Provision for loan losses, the funds it sets aside to cover souring loans, fell 63% to $9.1 million.
Net chargeoffs, loans lenders don't think are collectible, were 0.49% of average loans, compared with 1.11% a year earlier and 0.57% in the prior period. Nonperforming assets, those near default, as a percent of total loans and foreclosed assets were 2.27%, compared with 3.89% and 3.32%, respectively.
