BancorpSouth posts $15.85M profit

By NEMS Daily Journal

TUPELO – BancorpSouth Inc. reversed a fourth-quarter loss from a year ago, posting net income of $15.85 million, or 19 cents a share, for the Oct. 1 to Dec. 31 period.
In 2009, BancorpSouth recorded a loss of $2.1 million, or 3 cents a share.
For all of 2010, net income was $22.94 million, a 72 percent drop from the $82.73 million posted the previous year.
The fourth-quarter turnaround was due in large part to a $19 million decrease in the provision for credit losses, from $62.3 million in the period a year ago to $43.3 million for the most recent period.
Annualized net charge-offs were 2.19 percent of average loans and leases for the quarter, compared with 1.27 percent in 2009.
Nonperforming loans and leases fell from $409.4 million to $394.4 million.
Net interest revenue for the quarter was $110.3 million, a 1.9 percent decrease from a year-ago period. Net interest margin was 3.59 percent for the quarter compared with 3.81 percent for the fourth quarter of 2009 and 3.64 percent for the third quarter of 2010.
Total assets at the end of the year were $13.6 billion, an increase of 3.4 percent. Total deposits were $11.5 billion, a 7.6 percent increase. Loans and leases were $9.3 billion, a 4.5 percent decline.
BancorpSouth said the decline in loans and leases remained concentrated in the construction, acquisition and development loan portfolio, which decreased $311.3 million, or 21.3 percent, during 2010.
The growth in its deposits reflected an increase of 8.3 percent increase in noninterest bearing deposits, a 14.1 percent increase in interest-bearing demand deposits and a 19 percent increase in savings deposits.
Nonperforming loans were $394.4 million, or 4.23 percent of net loans and leases, at the end of the year, compared to $186.5 million, or 1.91 percent of net loans and leases at the end of 2009, and $409.4 million, or 4.30 percent of net loans and leases, at Sept. 30, 2010. The allowance for credit losses was 2.11 percent of net loans and leases, compared to 1.80 percent a year earlier.