This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Analysis: New Look For Banking Biz In Gulf Region

ALAN SAYRE

NEW ORLEANS (AP) â¿¿ The recent deal for Mississippi-based Hancock Holding Co. to acquire Gulf Coast rival Whitney Holding Corp. foretells how the post-meltdown future of the banking industry may play out.

Analysts are forecasting more combinations of regional banking players. One of the architects of the $1.5 billion Hancock-Whitney marriage sees community banks playing a bigger role â¿¿ and likely executing mergers between themselves to provide more lending clout.

And banking centers themselves are changing.

Whitney will be the last of the classic Louisiana headquartered banks that once included such names as First Commerce Corp., Hibernia Corp. and Premier Bancorp. First Commerce and Premier were swept up in the megabank acquisition craze of the 1990s. Capital One Financial Corp. bought Hibernia in 2005.

Hancock bought another pair of Louisiana headquartered banks â¿¿ American Security Bank and American Bank of Baton Rouge â¿¿ as it widened its reach in the '90s. Whitney pulled off more than two dozen other acquisitions from the 1980s to 2008 to spread across the Gulf Coast â¿¿ only to become bogged down in the Florida loan debacle.

After Whitney loses its separate identity, the big dog on the block in Louisiana appears to be Lafayette-based Iberiabank Corp., which has a smaller, but feisty rival in its back yard, MidSouth Bancorp Inc.

More combinations in the South are inevitable, banking analyst Michael Rose of Raymond James said recently, with Hancock-Whitney likely pointing the way to a new era of mergers and acquisitions following big loan problems in the region and new federal capital requirements.

"It's going to force more to the altar," Rose said.

Iberiabank has been expanding throughout the post-meltdown, taking over three failed banks in Florida and one in Alabama with the Federal Deposit Insurance Corp. agreeing to share in any resulting loan losses. Hancock took over another failed Florida banking company.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs