Sterne Agee Neutral On Hancock Holding Company (HBHC)

Sterne Agee has a Neutral rating on shares of Hancock Holding Company HBHC. In a note to clients, Sterne Agee writes, "We are raising our 2011E EPS to $1.80 (+$0.15) to reflect the stronger showing in 4Q10. Our 2012E EPS remains $2.60. Based on 4Q10 financials, three primary drivers could benefit results going forward: (1) a reduction in provision expense to 80 bp would benefit quarterly EPS by $0.05; (2) flat overhead LQ would have resulted in an EPS lift of $0.05; and (3) more reasonable management of liquidity would boost EPS by $0.05—representing annualized EPS of $2.40, or 30% above the run-rate of $1.84 posted in 4Q10. Increased comfort on our part that these three items could be near-term events (rather than 2012) would make us more bullish on HBHC." Shares of HBHC closed at $33.66 yesterday.