TUPELO – BancorpSouth Inc. said its second-quarter net income was $33.9 million, compared to $40.1 million for the same period a year earlier.
The results represent earnings of 41 cents per share, versus 49 cents a year ago.
Net income for the first six months of the year was $63.3 million or 76 cents per share.
BancorpSouth saw its mortgage lending revenue rise to $11 million, compared to $4.6 million in 2008. Because of favorable mortgage rates that were at or near record lows, BancorpSouth saw a significant increase in mortgage loan origination. It reported having originated loans of $932 million in the first half of the year, versus $963 million for all of 2008.
Net interest revenue rose slightly from $109.8 million to $110.9 million for the quarter. The net interest margin was 3.75 percent, compared to 3.79 percent a year ago and 3.74 percent in the first quarter.
Non-interest revenue rose 8.8 percent to $79.7 million.
Non-interest expense increased 10 percent from $112.1 million to $123.3 million, with $6.1 million of the increase attributed to a special FDIC assessment.
“As our second quarter financial results demonstrate, BancorpSouth continued to perform well in this difficult economic environment,” said BancorpSouth Chairman and CEO Aubrey Patterson.
Like other banks across the country, BancorpSouth bumped up its provision for credit losses. For the second quarter, its provision for losses was $17.6 million, exceeding the actual net charge-offs of $13.5 million.
Non-performaing loans and leases rose to $97.7 million, or 1 percent of net loans and leases, compared to $46 million, or .49 percent of net loans and leases, a year earlier. The allowance for credit losses from 1.30 percent to 1.42 percent.
Total assets as of June 30 were $13.3 billion, with total deposits of $10.2 billion. Loans and leases, net of unearned income, was $9.8 billion.
BancorpSouth’s board of directors also voted to issue a cash dividend of 22 cents per common share on Oct. 1 to shareholders of record as of Sept. 15.
NEMS Daily Journal reports