Wunderlich Securities Maintains Buy On Hancock Holding Co. Following Earnings Beat

Wunderlich Securities reiterates its Buy rating on shares of Hancock Holding Company HBHC and its price target of $45. HBHC reported 4Q10 EPS of $0.46, which matched Wunderlich's estimate and was $0.06 above consensus. The company reported continued improvements in asset quality trends as NPLs, NCOs, and provision were all down sequentially. Versus Wunderlich's estimates, HBHC reported lower provisioning levels but higher expenses than forecasted. HBHC experienced a slight increase in fourth quarter loan balances as CRE and consumer loan growth was offset slightly by decreases in mortgage and indirect consumer loans. HBHC's asset quality improved in 4Q as NPLs, NCOs, and provisioning levels were all down on a linked-quarter basis, with NCOs and the provision each down 30% unannualized. NPLs were down $9.4 million to $79.6 million, or 1.60% of total loans. Additionally, 90-day past-due loans dropped to $1.5 million from $7.3 million in 3Q, while all credit metrics came in better than projected. HBHC closed Wednesday at $33.90