BancorpSouth Inc. (NYSE: BXS) yesterday announced its second acquisition agreement of the month, while also reporting increased fourth-quarter and 2013 profits.
Texas buyoutThe Tupelo, Miss.-based bank holding company, which operates six BancorpSouth branches in Springfield, signed a definitive agreement to buy out a Texas banking corporation.
Under the terms of the agreement, BancorpSouth will issue roughly 7.3 million shares of its stock and $28.5 million in cash for all outstanding shares of Central Community Corp.
Based in Temple, Texas, Central Community is the parent company of Austin-based First State Bank of Central Texas, which operates 31 branches in the region. The holding company reported assets of $1.3 billion, loans of $555.5 million and deposits of $1.1 billion as of Dec. 31, according to a news release.
"This merger will give us the opportunity to expand our footprint into the vibrant central Texas market," BancorpSouth CEO Dan Rollins said in the release. "The Austin, Texas, (metropolitan statistical area) consistently ranks at or near the top of almost all statistical publications regarding economic drivers and activity."
The boards of directors of both companies unanimously approved the deal, which is expected to close in the second quarter, pending approvals by shareholder and customer regulatory approvals.
Announced earlier this month, BancorpSouth also has a pending acquisition agreement in place with Monroe, La.-based Ouachita Bancshares Corp. for 3.7 million shares of BancorpSouth common stock and $22.9 million in cash. That transaction also is expected to close in the second quarter, according to
Springfield Business Journal archives.
Earnings reportBancorpSouth recorded fourth-quarter earnings of $27.7 million, a 63 percent increase from the same quarter a year ago, financials that helped boost annual profits 11.6 percent to $94.1 million, according to a separate news release.
Diluted share earnings for the quarter rose 11 cents to 29 cents, while full-year earnings jumped 9 cents to 99 cents per share.
Fourth-quarter highlights:
- BancorpSouth completed an acquisition in the fourth quarter of Texas-based Gem Insurance Agencies LP, a deal expected to produce annual insurance commission revenue of roughly $9 million.
- The company generated net loan growth - of $184.9 million - for the third consecutive quarter.
- Nonperforming loans and leases dropped by 16.6 percent, or $23.9 million, from the third quarter.
As of Dec. 31, BancorpSouth reported assets of $13 billion and deposits of $10.7 billion. The company operates 292 commercial banking, mortgage, insurance, trust and broker/dealer locations in eight states, including Missouri, and an insurance office in Illinois, according to the release.
