BancorpSouth quarterly income up almost 20%, misses estimate

by The City Wire staff ([email protected]) 135 views 

BancorpSouth posted quarterly net income of $34.343 million for the third quarter, up 19.3% over the same period in 2014 but missing the consensus analyst estimate on earnings per share and total revenue.

Per share earnings for the Tupelo, Miss.-based bank holding company reached 36 cents per share, below the 37 cents that was the consensus estimate. Total revenue during the quarter was $181.154 million, below the $183.2 million in the same quarter of 2014 and below the consensus estimate of $184.25 million.

However, the company is on a positive track for the first nine months of 2015. Year-to-date net income is $106.322 million, ahead of the $88.09 million in the same period of 2014. Total revenue for the first nine months is $556.91 million, ahead of the $541.653 million in the same period of 2014.

“Our third quarter results reflect yet another quarter of steady improvement in our core operating performance,” Dan Rollins, BancorpSouth chairman and CEO, said in the earnings report released Monday (Oct. 19) after the markets closed. “We are pleased to report net loan growth of $212.0 million, or 8.4 percent annualized.This growth, combined with stable loan yields, resulted in improvement to our net interest margin as well as growth in net interest income.”

Total assets for the company was $13.8 billion as of Sept. 30, up from $13.1 billion on Sept. 30, 2014. Deposits stood at $11.1 billion as of Sept. 30, up from the $10.7 billion on Sept. 30, 2014.

The company continues to lower its troubled real estate holdings but saw a rise in its non-performing loans. Other real estate owned (OREO) totaled $23.7 million at the end of the quarter, down from $24.3 million at the end of the second quarter. Non-performing loans were $90.3 million, more than the $79.4 million as the end of the second quarter.

The company continues to wait for regulatory approval of two acquisitions announced earlier this year. BancorpSouth announced in January 2014 it would buy Ouachita Independent Bancorp of Monroe, La., for $115 million in stock and cash. Within the same month BancorpSouth also sought to buy Central Community Corp., the parent company of Austin, Texas-based First State Bank Central Texas. The deal pushed BancorpSouth much deeper into the competitive Texas banking market. BancorpSouth anted up $182.3 million in stock and $28.5 million in cash for this Texas deal.

Both deals are on hold because of federal inquiries into BancorpSouth’s practices. Bank officials said federal bank regulators have found problems with its compliance with the Bank Secrecy Act and programs to fight money laundering. BancorpSouth also said the federal Consumer Financial Protection Bureau is reviewing the bank's fair lending practices.

The term to complete the two merger agreements has been extended to Dec. 31.

BancorpSouth shares (NYSE: BXS) closed Monday at $23.58, up 1 cent. During the past 52 weeks the share price has ranged from a $26.68 high to a $19.64 low.