By Dennis Seid/NEMS Daily Journal
TUPELO – BancorpSouth reversed a loss from a year earlier with a second-quarter profit of $12.8 million, or 15 cents a share.
Analysts, on average, expected BancorpSouth to earn 4 cents a share.
By sharply reducing its credit loss provision by nearly half – from $62.4 million to $32.2 million – BancorpSouth turned around a loss of $12.6 million, or 15 cents a share, from the same quarter a year ago.
Nonperforming loans fell 10.6 percent from the first quarter of 2011 by $45.2 million, to $379.8 million. Nonperforming loans made up 4.1 percent of net loans and leases, while the credit loss allowance was 2.14 percent of loans and leases.
Net interest revenue improved 0.5 percent to $109.9 million.
The company’s net interest margin was 3.71 percent – unchanged from a year ago, but slightly higher than the first quarter’s 3.69 percent.
Total assets were unchanged at $13.4 billion. Total deposits grew 0.8 percent to $11.3 billion.
Loans and leases, net of unearned income, fell 4.5 percent to $9.2 billion.
Noninterest revenue was $75.1 million, compared with $57.1 million for the second quarter of 2010.
BancorpSouth also noted credit and debit card fees increased 20.1 percent, to $11.26 million, from a year earlier, a figure that also was 8.9 percent higher compared to the first quarter. Service charges fell 12.6 in the quarter, to $16.56 million, from the year-ago period.
The results were released after financial markets closed. In Monday trading, BancorpSouth shares rose 16 cents to close at $12.65. The shares have traded in a 52-week range of $11.57 to $16.75.