By JACK WEATHERLY
BancorpSouth’s earnings dipped in the second quarter, but that had nothing to do with the lender’s $10.6 million fine for redlining certain minority neighborhoods of Memphis, it said in a release issued Wednesday night.
Net income for the quarter ending June 30 was $34.7 million, or 37 cents per share, compared with $39.7 million, or 41 cents per share a year earlier.
The settlement with the Consumer Financial Protection Bureau and Department of Justice “did not materially impact our second quarter . . . as we previously recorded an associated liability of $13.8 million during the first quarter,” Chairman and Chief Executive Dan Rollins said.
The Tupelo-based chain said in a prepared statement last month that it while it “disagrees with these allegations, the decision to settle was made to avoid prolonged and distracting litigation.”
The bank had 22 branches in the Memphis area from at least 2011 till 2013, all of which were located outside neighborhoods with large minority populations, investigators found.
“Despite this distraction, our core financial results continue to improve,” Rollins said.
Net interest revenue rose $112.3 million, from $107.3 million a year earlier, according to the release.
The loan and lease portfolio reached $10.6 billion, up from $10 billion a year earlier.
Nonperforming loans and leases rose to $68.6 million, up from $67.8 million.
Noninterest revenue fell to $69.7 million from $74.3 million.
Assets rose to $14.1 billion, compared with $13.6 as of June 30, 2015.
Shares fell 1.99 percent, or 47 cents, to close at $23.19 in trading on the New York Stock Exchange, The stock has ranged from $18.69 to $27.73 in the past 52 weeks.
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