BancorpSouth, Simmons First report quarterly earnings

Tupelo, Miss.-based BancorpSouth continues to fight its way through loan losses, and Pine Bluff-based Simmons First National Bank is hopeful that recent expansions will boost 2011 numbers.

BANCORPSOUTH
Both banks reported fourth-quarter earnings Thursday (Jan. 25), with BancorpSouth recording $22.942 million in net income in 2010, down 72.2% compared to 2009. The key difference between the two years was that the bank set aside $204.144 million for credit losses in 2010 compared to just $117.324 million in 2009.

For the fourth quarter, BancorpSouth posted $15.846 million in net income, a certain improvement over the $2.146 loss in the same quarter of 2009.

“While the credit market remains challenging, we experienced a 3.7% decline in non-performing loans, 30 – 89 day past due loans continued to decline, and we saw a decline in the provision for credit losses as required reserves for impaired loans declined and levels of adversely classified loans decreased,” Aubrey Patterson, BancorpSouth chairman and CEO, said in the earnings statement. “While we still have far to go to return to the level of financial performance we expect at BancorpSouth, we feel that we are moving in the right direction.”

The company said housing markets in Alabama, Nashville and Memphis “continue to be affected by the slow housing markets.”

Problematic in 2011 will be the banks growing value in real estate owned — property the bank has acquired through foreclosures and other forms of default. The real estate owned balance increased during the fourth quarter to $133.4 million, compared to $59.3 million at in the fourth quarter of 2009, and $82.6 million at the end of the third quarter of 2010.

Patterson addressed the challenge of the slow housing markets and loan loss provisions.

“Our challenges for 2011 are clear. With high unemployment and modest economic growth, we are cautious about our ability to expand our loan portfolio with high quality credits. In this environment, we are highly focused on continuing to work through any remaining credit issues to sustain the positive trends evident in our fourth quarter results,” Patterson noted in the statement.

BancorpSouth shares (NYSE: BXS) closed Thursday at $14.84, down 1 cent. The earnings report was released after the markets closed. During the past 52 weeks, the share price has ranged from a $23.50 high to a $12.27 low.

SIMMONS FIRST
Simmons First National Bank closed the books on a historic year with a flat fourth quarter performance, but the bank’s chief executive said two historic acquisitions with grow future earnings.

For the period ended Dec. 31, the Pine Bluff bank report fourth quarter earnings of $16.6 million, or 96 cents per share, up a whopping 144% from $6.8 million or 44 cents per share in the same period a year ago.

However, excluding all non-recurring items, fourth quarter core earnings were $6.8 million, or 40 cents per share. Analysts, on average, expected the Pine Bluff bank to report fourth quarter earnings of 40 cents per share, according to Thomson Reuters.

For the year, Simmons report net income of $37.1 million or $2.15 per share, an increase of $11.9 million, or 47 percent compared to net income of $25.2 million, or $1.74 per share in fiscal 2009. Excluding special items, Simmons net earnings were $26 million, or $1.51 per share.

In 2010, Simmons expanded its footprint with the aid of two FDIC-assisted acquisitions in Missouri and Kansas. The most recent expansion occurred in October with the takeover of Security Savings Bank in Olathe, Kan., resulting in several new branches in the Kansas City metropolitan area.

Earlier in May 2010, Simmons acquired Southwest Community Bank in Springfield, Mo., the bank’s first foray outside the state of Arkansas.

"We are excited about our expansion beyond the borders of Arkansas into Missouri and Kansas. We are pleased with our 2010 results, which resulted in a significant bargain purchase gain on two acquisitions, record net interest income, good expense control through our efficiency initiatives and continued good asset quality compared to the rest of the industry," said J. Thomas May, Chairman and CEO.

Simmons First shares (NASDAQ: SFNC) closed Thursday at $29.01, up 7 cents. During the past 52 weeks, the share price has ranged from a $30.16 high to a $24.18 low.