TUPELO – BancorpSouth posted net income of $24.9 million, or 26 cents a share, during the third quarter, up from $23.8 million, or 25 cents a share from a year earlier.
The financial company’s results were boosted by a second consecutive quarter of net loan growth, plus an interest expense reduction of $9.1 million from the redemption of a trust preferred securities.
Noninterest expense also fell by $4.8 million, due largely to salary and benefits declines linked to a voluntary early retirement program implemented during the second quarter.
The company’s net interest margin for the period rose from 3.36 percent in the second quarter to 3.45 percent in the third quarter.
BancorpSouth’s nonperforming loans and leases dropped $23.6 million, or 14.1 percent, from the previous quarter and declined $103 million, or 41.6 percent, from the third quarter of 2012. Nonperforming assets in the third quarter fell $154.4 million, or 41.1 percent from a year earlier.
“We continue to be encouraged by trends in our credit quality, specifically the pace at which we are moving problem assets,” said BancorpSouth CEO Dan Rollins.
Net interest revenue was $100.2 million, a decrease of 3 percent compared to a year ago.
Total assets were $12.9 billion at the end of the quarter, compared with $13.2 billion a year earlier. Total deposits were $10.7 billion, compared with $11 billion. Loans and leases, net of unearned income, were $8.8 billion, compared with $8.7 billion.
Nonperforming loans were $144.3 million, or 1.65 percent of net loans and leases, versus $247.3 million, or 2.85 percent of net loans and leases, in the year-ago period.
The allowance for credit losses was $154 million, or 1.76 percent of net loans and leases compared with $169 million a year earlier.
Noninterest revenue was $62.5 million, compared with $70.4 million in 2012
Mortgage origination volume for the third quarter was $341.9 million, compared with $607.9 million a year earlier. Credit and debit card fee revenue was $8.8 million, compared with $8.3 million. Insurance commission revenue was $23.8 million, compared with $23.5 million.
“We believe the financial results for the quarter reflect tangible benefits from the actions that we have taken and the focus that we have discussed both internally and externally over the last several months,” Rollins said. “We have been able to grow loans and grow net interest income for two consecutive quarters while continuing to reduce the residual problem assets at areasonable pace. While we are not immune to the industry headwinds related to mortgage, we have also been able to continue to grow several of our noninterest revenue sources. We believe that other actions that we continue to take daily with respect to other expense items will improve efficiency going forward.”