BancorpSouth nets $20.8M in quarter

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TUPELO – BancorpSouth recorded net income of $20.8 million, or 22 cents a share.

That compares to last year’s quarterly profit of $20.6 million, or 22 cents a share.

Analysts had estimated earnings of 24 cents per share.

If not for a $10.9 million charge for employee buyouts for this year’s quarter, BancorpSouth would have added another 7 cents per share.

More than 220 people, about 5 percent of the company’s workforce, took an early retirement option offered to them in May. BancorpSouth expects annual pretax savings of about $9 million, or 6 cents a share.

The parent company of BancorpSouth Bank also said it would cut annual interest expenses by $9.1 million, or 6 cents a share as it redeemed trust preferred securities.

“Much progress was made during the second quarter toward improving our cost structure and turning our attention toward growth,” said CEO Dan Rollins. “These two initiatives are expected to result in annual savings of over $18 million for our company. We are also pleased to report quarter-over-quarter loan growth for the first time in over three years”

BancorpSouth did see some margin compression as its net interest margin fell to 3.36 percent from 3.65 percent for last year’s second quarter. Net intrest revenue dropped 6.2 percent to $98.2 million.

At the end of the quarter, BancorpSouth had $13 billion in total assets. Total deposits were unchanged at $11 billion. Loans and leases also were unchanged at $8.7 billion.
BancorpSouth cut its credit loss provision in half, to $3 million. Nonperforming loans dropped to $167.9 million, or 1.94 percent of net loans and leases, compared to $266.9 million, or 3.06 percent. Noninterest revenue jumped from $66.5 million to $76.1 million for the quarter, up 14 percent. Net mortgage lending revenue was $12.6 million, as mortgage origination volume reached $435 million.

Credit and debit card revenue rose 6 percent to $8.3 million, while service charge revenue dropped back to $12.8 million from $13.7 million.

Insurance commission revenue rose 12.6 percent to $25.9 million from $23 million.