By NEMS Daily Journal
TUPELO – BancorpSouth Inc. recorded lower fourth-quarter net income, but higher earnings overall for the 2011.
The parent company of BancorpSouth Bank reported net income of $13.3 million, or 16 cents per share for the quarter, compared to $15.8 million, or 19 cents a share, in the same period in 2010.
For all of 2011, BancorpSouth posted net income of $37.6 million, or 45 cents a share, versus $22.9 million, or 27 cents a share, a year earlier.
The company also said it would sell $100 million in stock, using the money for general purposes, including boosting capital or acquiring other banks and insurance agencies.
Total assets were $13 billion at the end of 2011, compared to $13.6 billion at the end of 2010. Total deposits were $11, a decrease of 4.7 percent from $11.5 billion a year earlier. Loans and leases, the net of unearned income, were $8.9 billion, a 5 percent decline from the $9.3 billion recorded in 2010.
The CAD (construction, acquisition and development) loan portfolio, which declined $266.4 million, or 22.7 percent, for the year accounted for 58 percent of the drop in net loans and leases.
Helping the fourth-quarter results was a reduction in credit losses to $19.3 million, compared to $43.3 million in the year-earlier period. Non-performing loans dropped $40.5 million, to $322.3 million, in the fourth quarter.
Net interest revenue dropped 2.5 percent in the fourth quarter to $107.5 million. Net interest margin was 3.69 percent for the period, compared to 3.59 percent in the fourth quarter of 2010.
Non-interest revenue was $65.3 million in the fourth quarter, down from $74 million a year earlier.
Mortgage origination volume for the period fell from $451.9 million to $389.6 million. Credit and debit card fees dropped $2.2 million, or 21.8 percent, from the year-ago period. Insurance commissions rose $1.4 million, or 7.8 percent.
“Our fourth quarter results indicate improvement achieved in our credit costs and other credit metrics, which reflect progress towards problem asset resolution,” said BancorpSouth Chairman and CEO Aubrey Patterson. “We are focused on continuing to improve asset quality. However, we remain cautious about the impact of the current economic environment on our near-term results.
“Despite this difficult environment, we continue to be pleased with the performance of our core operations. We have successfully maintained our net interest margin and have steadily increased revenue from our noninterest lines of business.”