BancorpSouth posts 3Q net income of $11.9M

By Daily Journal Report

TUPELO – BancorpSouth Inc. on Monday reported third-quarter net income of $11.9 million, or 14 cents a share. That’s a 6 percent increase compared to the $11.3 million, or 13 cents a share, it earned in the third quarter of 2010.
On average, analysts had projected earnings of 16 cents a share.
BancorpSouth’s net interest revenue in the third quarter fell 1.5 percent from a year earlier to $108.1 million. The net interest margin was 3.66 percent for the quarter, up from 3.64 percent for the year-ago period.
At the end of the quarter, total assets were $13.2 billion, compared to $13.6 billion last year. Total deposits were $11.1 billion, a decrease of 1.2 percent. Loans and leases, net of unearned income, were $9.1 billion, a decrease of 4.8 percent.
For the quarter, the provision for credit losses was $25.1 million, compared with $54.9 million for the third quarter of 2010 and $32.2 million for the second quarter of 2011. Annualized net charge-offs were 1.01 percent of average loans and leases for the the period, compared with 2.10 percent for the third quarter of 2010.
Nonperforming loans were $362.8 million, or 4.01 percent of net loans and leases, compared with $409.4 million, or 4.30 percent of net loans and leases, in the year-ago quarter. The allowance for credit losses was 2.21 percent of net loans and leases, compared with 2.16 percent last year.
Noninterest revenue was $62.1 million for the third quarter of 2011, down from $69.8 million a year ago.
Mortgage origination volume for this year’s quarter was $374.8 million, versus $490.3 in 2010.
Credit and debit card fees increased $3.4 million, or 35.7 percent, compared to the $1.7 million recorded a year earlier. Service charges decreased $1.3 million, or 6.9 percent, for the comparable quarters. Insurance commissions rose $1.2 million, or 5.7 percent.
“Our third quarter results indicate that our credit issues remain manageable,” said BancorpSouth Chairman and CEO Aubrey Patterson. “In addition to our continuing focus on improving credit quality, we remain committed to maintaining a strong capital base and ample liquidity.
“We remain appropriately cautious about the near-term impact of the economic environment on our operating results. However, our banking and noninterest revenue operations have continued to produce solid, stable financial results in the aggregate throughout the recessionary economic environment.”
BancorpSouth announced its third-quarter results after the market closed on Monday.
Shares of BancorpSouth (NYSE: BXS) rose 34 cents to close at $10.99.