Home » NEWS » Banking & Finance » BancorpSouth saw 28% jump in earnings last quarter

BancorpSouth saw 28% jump in earnings last quarter

TUPELO — BancorpSouth says profit in 2012’s fourth quarter rose 28 percent from the same three months of 2011, as mortgage fees remained high and the bank set aside less money for future loan losses.

The bank said yesterday it posted a quarterly profit of $17 million, or 18 cents per share, up from $13.3 million, or 16 cents per share, in 2011’s fourth quarter.

Analysts predicted 24 cents a share, on an adjusted basis, according to FactSet.

BancorpSouth said it set aside $6 million to cover future bad loans, compared to $19.3 million in the same three months of 2011.

“Results for the fourth quarter reflect yet another quarter of strong mortgage production and asset quality improvement,” said Chairman of the Board Aubrey Patterson. “Mortgage production for the quarter was $549.4 million, contributing to total mortgage lending revenue of $17.2 million. This level of production resulted in a record annual production volume of almost $2 billion for 2012.”

The bank said it also decided to sell off a large amount of foreclosed real estate, even if had to cut prices, in order to improve future profits.

The bank said profits were dragged down because the amount of interest it received from borrowers fell faster than the amount of interest that BancorpSouth paid to savers. Called interest margin compression, that problem is plaguing many banks.

BancorpSouth posted return on average assets of 0.5 percent. That key measure of bank profit was lower than most banks nationwide posted in the third quarter, according to the FDIC.

The $13.4 billion bank has offices in Mississippi, Alabama, Arkansas, Florida, Louisiana, Missouri and Tennessee.

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Megan Wright

Leave a Reply

Your email address will not be published. Required fields are marked *

*