TUPELO – BancorpSouth will have to wait until next year to complete its mergers with two banks.
The company said Monday it needed additional time to complete its mergers with Ouachita Bancshares Corp. of West Monroe, Louisiana, and Central Community Corp. of Temple, Texas. BancorpSouth had announced the deals in January and had expected their completion by June 30 of this year.
BancorpSouth said more time was needed to get regulatory approvals and to meet “closing conditions necessary to complete” the mergers. The merger agreements, valued at a combined $325 million in stock and cash, have been extended to June 30 of next year.
“We continue to believe our proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation are in the best interest of our shareholders, customers and communities,” said BancorpSouth Chairman and CEO Dan Rollins.
The boards of directors of all three companies have unanimously approved the mergers.
According to a news release, BancorpSouth “has learned that federal bank regulators have identified concerns during the course of routine supervisory activities regarding the company’s procedures, systems and processes related to certain of its compliance programs, including its Bank Secrecy Act and anti-money-laundering programs. In addition, the Consumer Financial Protection Bureau currently is conducting a review of the company’s fair lending practices.”
Meanwhile, BancorpSouth Inc. announced second-quarter earnings rose 49 percent to $30.9 million, or 32 cents a share.
The results were in line with consensus estimates of 33 cents a share for the period.
In last year’s second quarter, BancorpSouth earned $20.8 million, or 22 cents a share.
The Tupelo-based parent of BancorpSouth Bank said non-performing loans declined more than $94 million from a year earlier. And for the second quarter, it had no provision for credit losses.
Net interest revenue rose 5 percent to $103.1 million. Net interest margin for the quarter was 3.59 percent, compared to 3.36 percent last year.
BancorpSouth’s second-quarter results were boosted by mortgage loan production of $291 million that added $9.1 million of income, while insurance commissions produced $28.6 million.