BancorpSouth posts 16 percent income growth in 4Q

Tupelo, Miss.-based BancorpSouth posted a 16 percent increase in net income for the fourth quarter of 2009 compared to a year earlier.

The bank posted net income of $19.4 million, or 23 cents per diluted share, for the quarter. Net income for the year was $104.3 million, or $1.25 per share, down 13 percent from the $120.4 million posted in 2008.

Net interest revenue was $113 million for the quarter, up 1.5 percent from the same period a year before, and noninterest income was $64.5 million for the quarter, up 61 percent from fourth-quarter 2008.

Provision for credit losses was $34.7 million in the quarter, nearly double the $17.8 million from a year earlier, while nonperforming loans and leases increased to $145.1 million as of Dec. 31, 2009, compared to $64 million at the end of 2008.

"BancorpSouth's fourth-quarter results reflected a strong operating performance given difficult industry conditions," Chairman and CEO Aubrey Patterson said in the earnings release. "As anticipated throughout a year of steadily declining real estate values, our credit quality continues to be affected by a slow economy, particularly in the housing sector. While nonperforming assets and net charge-offs have increased, both remain at manageable levels, and we continue to focus on early identification of potential problems and work aggressively to resolve those problems."

Shares of BancorpSouth (NYSE: BXS) closed Friday at $23.21, compared to a 52-week range of $15.60-$25.30.