TUPELO – BancorpSouth Inc. notched its most profitable quarter in seven years, posting second-quarter earnings of $39.7 million, or 41 cents a share.
The results were 6 cents higher than consensus estimates, but revenue of $181.62M, while 5 percent better than a year ago, missed estimates by $1.73 million.
Still, the EPS for the quarter ended June 30 was the most since the second quarter of 2008, when BancorpSouth reported earnings of $40.1 million, or 49 cents a share.
Net loan growth of nearly $281 million, or almost 12 percent on an annualized basis, along with a continued focus on expenses contributed to the improvement in results, company Chairman and CEO Dan Rollins said.
In addition, BancorpSouth boosted its recovery of previously charged-off loans, netting $6.7 million. Last year, the company charged off $5.6 million in loans in the second quarter.
The second-quarter results of this year were 28 percent higher than the year-ago period, when BancorpSouth registered earnings of $30.9 million, or 32 cents a share.
And for the first six months of the year, the company’s net income was $72 million, or 74 cents a share, a 24 percent improvement over the $59.3 million (62 cents a share) in net income for the first six months of last year
Total assets were $13.6 billion at the end of the quarter, an increase of about $600 million from a year earlier. Loans and leases, net of unearned income, were $10.0 billion, compared with $9.3 billion in last year’s quarter.
Total deposits in the period increased by about $400 million to $11.1 billion.
Time deposits fell 9.7 percent to $207.3 million, but noninterest-bearing demand deposits increased $193.7 million, or 7.1 percent. Savings deposits increased $108.4 million, or 8.3 percent, while interest bearing demand deposits increased $369.7 million, or 8.2 percent.
Other highlights of BancorpSouth’s second-quarter earnings report:
• Net interest revenue was $107.3 million, an increase of 4.1 percent from $103.1 million.
• Net interest margin was 3.54 percent, down from 3.59 percent a year ago and from 3.56 percent during the first quarter.
• A negative provision for credit losses of $5.0 million was recorded, compared to no recorded provision last year. Total non-performing assets declined to $103.7 million from $128.9 million.
• Non-performing loans were $79.4 million, up slightly from the $73.7 million, a year earlier.
• The allowance for credit losses was $138.3 million, or 1.38 percent of net loans and leases compared with $147.1 million, or 1.58 percent of net loans and leases in the year-ago period
• Noninterest revenue was $74.3 million, up from $69.8 million.
• Net mortgage lending revenue dropped to $9.8 million from $11.2 million. Mortgage origination volume was $417.2 million, compared with $291 million for the year-ago quarter.
• Credit and debit card fee revenue rose to $9.3 million from $8.6 million.
• Insurance commission revenue increased about $700,000 to $29.3 million.
• Wealth management revenue was $5.5 million, down from $5.8 million.
Said Rollins in a statement, “Each quarter, we are seeing different teams step up and produce significant levels of growth. Our lending teams as well as our mortgage, insurance, and wealth management teams have contributed to meaningful revenue growth for our company over the past several quarters. We’ve been able produce this revenue growth while continuing to challenge expenses and improve our operating efficiency. We are confident this simple approach will allow us to continue to improve performance going forward.”
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