10 Big Banks With Solid Revenue

7. Hancock Holding Company

Shares of Hancock Holding Company (HBHC) of Gulfport, Miss., closed at $32.84 Monday, down 4% year-to-date. Based on a quarterly payout of 24 cents, the shares have a dividend yield of 2.92%.

The company had $19.8 billion in total assets as of Jun 30, more than doubling in size over the past year, mainly reflecting its acquisition of Whitney Holding Corp. in June, in a deal valued by SNL at $1.8 billion.

In the first quarter, Hancock Holding Company raised $224.4 million in common equity, in anticipation of repaying the government $300 million for bailout assistance provided to Whitney through the Troubled Assets Relief Program, or TARP, in 2008. Hancock fully repaid the U.S. Treasury when the Whitney acquisition was completed in June.

Second-quarter net income was $12.1 million, or 22 cents a share, increasing from $6.5 million, or 17 cents a share, in the second quarter of 2010. Excluding $22.2 million in merger-related expenses and $7.8 million in tax adjustments, Hancock Holding Company reported second-quarter operating earnings of $26.6 million, or 48 cents a share, increasing from $7.7 million, or 21 cents a share, a year earlier. The second-quarter provision for loan losses totaled $9.1 million.

The second-quarter net interest margin was 4.11%, expanding from 3.87% a year earlier, and the ROA was 0.42% according to the company.

Pre-provision net revenue for the second quarter totaled $49.5 million, increasing 38% from a year earlier, according to SNL, mainly reflecting a 46% increase in net interest income, to $99.1 million.

Following the second-quarter earnings announcement, Morgan Keegan analyst Ebrahim Poonawala reiterated his neutral rating on the shares while raising his price target to $36 from $34, saying the Whitney acquisition was "off to a good start," that that he expected "bumps in the road," and that "while some amount of market share loss would not be surprising following a merger of this size... this area is likely to remain a key focus for investors given the highly competitive markets that HBHC is operating in, especially WTNY's home market of Louisiana."

The shares trade for 12.4 times the 2012 consensus EPS estimate of $2.64.

Out of 14 analysts covering Hancock Holding Company, eight rate the shares a buy, while the remaining analysts all have neutral ratings.

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