Hancock Holding Company’s (HBHC – Analyst Report) fourth-quarter 2015 operating earnings of 19 cents per share surpassed the Zacks Consensus Estimate of 16 cents. However, earnings compared unfavorably with the prior-year figure of 56 cents.

Hancock Holding Company (HBHC – Analyst Report) EPS BNRI & Surprise Percent – Last 5 Quarters | FindTheCompany

For 2015, total operating earnings came in at $1.77 per share, beating the Zacks Consensus Estimate of $1.75. However, the figure fell 24% year over year.

Results reflected slight improvement in revenues led by higher non-interest income, largely mitigated by lower net interest income. Growth in loans and deposits continued to be strong. However, higher expenses and an energy-led rise in provisions were on the downside.

Net income came in at $15.3 million, down 62% year over year. The decline was mainly triggered by a decrease in purchase accounting income and increase in energy allowance. For 2015, net income was $131.5 million, down 25% year over year.

Performance in Detail

Hancock’s net revenue summed $218.1 million, marginally up year over year. However, it lagged the Zacks Consensus Estimate of $224.0 million.

For 2015, net revenue came in at $862.1 million, down 2% year over year. Also, it missed the Zacks Consensus Estimate of $876.0 million.
 
Net interest income declined 2% year over year to $158.4 million. Moreover, net interest margin (“NIM”) fell 42 basis points (bps) year over year to 3.21%.

Non-interest income (including securities transactions gains/losses) totaled $59.7 million, up 5% year over year. The rise was driven by an increase in bank card & ATM fees, secondary mortgage market operations, insurance commissions and fees and other income. These were, however, partly offset by a fall in service charges on deposit accounts, trust fees, and investment & annuity fees.

Total operating expenses climbed 8% year over year to $156.0 million. The rise was triggered by an increase in all expense components except lower equipment and amortization costs.

As of Dec 31, 2015, total loans grew 13% year over year to $15.7 billion. Further, total deposits rose 11% year over year to $18.3 billion.