BancorpSouth improves bottom line by 49%

Tupelo, Miss.-based BancorpSouth Inc. (NYSE: BXS) amassed $30.9 million in second-quarter net income, a 48.7 percent improvement over earnings of $20.8 million a year earlier.

The holding company of six BancorpSouth branches in Springfield posted diluted earnings per share of 32 cents for the quarter ended June 30, a 10-cent uptick from second-quarter 2013, according to a news release.

"Our financial performance continues to improve and reflect the internal progress that we have made both in shifting our focus towards growth and in continuing to challenge our cost structure," BancorpSouth Chairman and CEO Dan Rollins said in the release.

Second-quarter financial notes:

• In April, company subsidiary BancorpSouth Insurance Services Inc. acquired the assets of Lafayette, La.-based Knox Insurance Group LLC for an undisclosed amount. Knox posts annual revenue of roughly $3 million, according to the release.
• The company generated net loan growth of $243.3 million, representing the fifth consecutive quarter of net loan growth.
• As of June 30, the company employed 3,981, down from 4,077 a year earlier. Expenses related to salaries and employee benefits decreased to $74.7 million in the second quarter, down from $78.3 million in the same quarter of 2013.

Along with its earnings release, BancorpSouth announced the closing of mergers with Ouachita Bancshares Corp. and Central Community Corp. likely have been delayed until next summer. The company learned federal regulators identified concerns during the approval process, including anti-money laundering programs, according to the release.

"While disappointed in the delay in being able to close these transactions, we are working diligently to resolve the compliance concerns that have been identified and to make the necessary improvements," Rollins said in the release. "We are pleased with the confidence that our merger partners have demonstrated through the extension of the merger agreements."

As of June 30, BancorpSouth held assets of $13 billion and deposits of $10.7 billion. The company operates 295 banking, mortgage and insurance locations in Missouri and eight other states, according to the release.

BXS shares were trading at $21.72 as of 8:53 a.m., compared to a 52-week range of $18.93 to $26.24.