Hancock Holding Co.’s fourth-quarter profit dropped by more than 60 percent after the company added $43 million to its estimate of expected losses on energy loans.
The Gulfport, Miss.-based parent of Hancock and Whitney banks reported earnings of $15.3 million, or 19 cents per share, compared to $40.1 million, or 48 cents a year ago. The company has $78.2 million reserved for loan losses in the energy industry. The new loss estimates amount to roughly 5 percent of Hancock’s energy loans, compared to the earlier anticipated losses of 2.1 percent.
“The depth and duration of the current energy cycle continued to deepen and lengthen from original expectations,” said President and Chief Executive Officer John M. Hairston.
The company upped its loan loss reserve to address that issue, he said.