Investors have been pressuring Hancock Holding (HBHC) in Gulfport, Miss., to speed up cost cuts after its $1.5 billion purchase of Whitney Holding in 2011. Second-quarter results strengthened their case.
The $18.9 billion-asset company said noninterest expense in the second quarter fell 9.8% to $162.3 million, compared with a year earlier. However, the year-ago figure included $11.9 million in expenses incurred specifically to close the Whitney deal. Compared with the first quarter of this year, Hancock's total noninterest expense actually increased 1.7%.
Because of persistently high costs and the investor pressure, Hancock said it would
In part because of the "ongoing implementation of the expense and efficiency initiative," Hancock management "believe[s] our company is becoming better positioned to operate in both today's economic environment as well as an eventual sustained, positive turn in the overall economy," Carl Chaney, president and chief executive, said in a news release.
In the first quarter, investors had
For the second quarter, Hancock reported net income of $46.9 million, a 19.2% increase from a year ago. Net interest income fell 4.7% to $171.8 million. Noninterest income was little changed at $63.9 million.