Gulf Coast Banks Resilient In Face of Hurricanes

Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

HEARD ON THE STREET: Regional Banks Weather Effects of Hurricanes

• Summary: Stocks of regional banks in Louisiana and Mississippi have been remarkably resilient, despite last year's hurricanes and this year's threats. New Orleans-based Whitney Holding has surged 31% this year, Hancock Holding of Gulfport, Miss. has jumped 38% and BancorpSouth is up 24%; this, while the regional bank index is up just 1.1% and the broader Dow Jones Wilshire Bank Index has risen 6.9%. While still struggling on defaults, the banks haven't seen wholesale write-offs or depleted accounts, and insurance payments and government aid have supported the banks. In Katrina's wake, investors dumped these banks, with Whitney's share price dropping 24% in six weeks, but most since have recovered. Analysts now are split on the Gulf Coast banks, with some seeing more upside ahead as the banks participate in a resurgent economy and others wary of this season's impact.
• Comment on related stocks/ETFs: Catablast likes Hancock's balance sheet, but not its loan growth pace.