Hancock Holding Co. in Gulfport, Miss., said late Tuesday that its third-quarter profits fell about 51% from a year earlier, to $17.7 million, or 55 cents a share.
One reason for the steep decline: Last year's results were helped by items related to Hurricane Katrina. The $5.9 billion-asset company had reversed $20 million from the storm-impacted credits, raising its after-tax earnings by $13 million, or 39 cents a share.
Also, this year's earnings were hurt by rebuilding and expansion efforts resulting in higher personnel, buildings, and equipment costs. A lot of the increased expenses were due to expansion efforts in Mobile, New Orleans, and Pensacola, Fla.
Occupancy expenses rose 38.1%, to $4.7 million. Personnel expenses rose 5.3%, to $28.5 million, and other operating expenses rose 7.5%, to $18.708 million.
"A plan of action has been undertaken to reduce our operating costs across all aspects of our operations, which will help us quickly return to the top quartile peer performance level we have attained for the last four years," said Carl J. Chaney, Hancock's chief executive officer.
By midday Wednesday, Hancock's shares had dropped 7.4% in heavy trading, to $37.51.
