Although its revenue is down for the first half of the year, an improving real estate market helped BancorpSouth post higher net income for the second quarter and the first six months of 2012.
The Tupelo-Miss.-based banking company reported Monday (July 23) that it earned $20.6 million in the second quarter, well ahead of the $12.8 million for the 2011 quarter. The per share earnings of 22 cents also bested the consensus estimate of 20 cents.
For the first half of 2012, BancorpSouth reported net income of $43.5 million, up more than 250% compared to the $12.3 million in the same period of 2012.
"We are pleased to report results that reflect another successful quarter in terms of improving profitability and asset quality," Aubrey Patterson, BancorpSouth chairman and CEO, said in the earnings statement. "Earnings for the quarter reflect continued decreases in credit costs as non-performing loans ("NPLs"), classified asset totals, and other credit quality metrics, including recoveries of previously charged off loans, continue to improve. In addition, we were pleased with the results of disposition efforts related to our other real estate owned, which resulted in a significant decline in the balance of these properties during the quarter."
Improvements in the real estate assets allowed the bank to reduce to $6 million for the second quarter, compared to a $32.2 million hit during the same period of 2011.
Also, the value of non-performing loans declined $112.9 million, or 29.7%, from $379.8 million at June 30, 2011.
Combined revenue (interest and non-interest revenue) totaled $349.179 million during the first half of 2012, down from the $362.804 million during the same period of 2012.
Components of the revenue include:
• Credit and debit card fee revenue was $7.8 million for the second quarter of 2012, compared with $11.3 million for the second quarter of 2011 and $7.5 million for the first quarter of 2012;
• Service charge revenue was $13.7 million for the second quarter of 2012, compared with $16.6 million for the second quarter of 2011 and $15.1 million for the first quarter of 2012; and,
• Insurance commission revenue was $23.0 million for the second quarter of 2012, compared with $22.9 million for the second quarter of 2011 and $23.2 million for the first quarter of 2012.
BancorpSouth Inc. is a financial holding company with more than $11 billion in assets as of Dec. 31. The company operates more than 280 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas.
Shares of BancorpSouth (NYSE: BXS) closed Monday at $14.26, down 43 cents. The earnings report was issued after the markets closed. During the past 52 weeks, the share price has ranged from a $15.29 high to a $8.23 low.