1. Hancock Holding Company
Hancock Holding Company
(HBHC - Get Report)
of Gulfport, Miss, closed at $30.84 Monday, down 1% year-to-date, following a 5% decline during 2011.
The shares trade for 1.6 times their reported Sept. 30 tangible book value of $18.97, and for 12 times the consensus 2013 EPS estimate of $2.62. Based on a quarterly payout of 24 cents, the shares have a dividend yield of 3.11%.
Hancock Holding Company had $18.5 billion in total assets as of Sept. 30. The company reported third-quarter net income of $47.0 million, or 55 cents a share, increasing from $39.3 million, or 46 cents a share, in the second quarter, and $30.4 million, or 36 cents a share, in the third quarter of 2011. The main factor in the earnings improvement was the lack of merger expenses in the third quarter, compared to merger-related expenses of $11.9 million the previous quarter, and $22.8 million a year earlier
The third-quarter net interest margin was a tax-adjusted 4.54%, expanding from 4.48% the previous quarter, and 4.32% a year earlier. The company reported a third-quarter operating ROA of 1.07% and an operating return on average common equity of 8.24%.
Marinac rates Hancock Holding company "Outperform," with a price target of $37.25, although on Nov. 9 he lowered his 2013 earnings estimate for the company to $2.75 from $3.00, "on our perception that balance sheet growth will be slower than we previously projected."
Marinac said that the company "should still earn strong ROA-Return On Assets above 1.20% in 2013 and turn in 13.5% ROTCE-Return on Tangible Common Equity which support a solid P/E and Price-to-Tang. Book valuation. Moreover, our EPS reduction is a function of lower earning assets and not an issue with NIM-Net Interest Margin or overhead costs."
Interested in more on Hancock Holding Company? See TheStreet Ratings' report card for this stock.
Written by Philip van Doorn in Jupiter, Fla.