BancorpSouth profit falls 13% in 2008

BancorpSouth Inc. last night reported a 13 percent decline in 2008 profit after its fourth-quarter income dropped by half.

The Tupelo, Miss.-based bank had net income of $16.8 million, or 20 cents per share, for the fourth quarter. That's down 48 percent from $32.2 million, or 39 cents per share, in the same quarter in 2007.

For the year, the bank had $120.4 million in net income, or $1.45 per share, down 13 percent from $137.9 million, or $1.69 per share, the year before.

Provision for credit losses in the quarter was $17.8 million, compared to $7.8 million a year earlier. Annualized net charge-offs were 0.57 percent of average loans and leases for the quarter, compared to 0.21 percent a year before.

The quarter's results were hurt partly by a decline in the fair value of the bank's mortgage servicing assets, according to a news release. The decline resulted in an after-tax charge of $10 million, or 12 cents per share.

Total assets at the end of the year were up 2.2 percent to $13.5 billion. Total deposits were down 3.5 percent to $9.7 billion, and loans and leases were up 5.6 percent at $9.7 billion. BancorpSouth opted not to participate in the U.S. Treasury's Capital Purchase Program.

Shares (NYSE: BXS) closed Thursday at $16.66 and were trading up at $18.86 as of 11:30 a.m. The 52-week range is $15.15 to $31.90.