BancorpSouth reports 15% drop in 2Q profit

BancorpSouth Inc. posted a 15 percent decline in profit during the second quarter, the Mississippi-based bank said last week.

Net income for the quarter was $33.9 million, or 41 cents per share, down from $40.1 million, or 49 cents per share, in second-quarter 2008. Net income was negatively affected by a special $6.1 million Federal Deposit Insurance Corp. assessment.

Net loans and leases grew 3 percent compared to a year ago. The provision for credit losses was $17.6 million, up from $11.2 million a year ago and up from $14.9 million in the first quarter. Net charge-offs for the quarter were $13.5 million.

Nonperforming loans and leases doubled to $97.7 million from $46 million a year ago and were $24 million higher than in the first quarter. They represented 1 percent of net loans, compared to 0.49 percent a year ago.

Net interest revenue was up 1 percent to $110.9 million; noninterest revenue increased 8.8 percent to $79.7 million; and noninterest expense was $123.3 million, an increase of 10 percent. Mortgage lending revenue, specifically, increased 140 percent to $11 million for the quarter, compared to $4.6 million last year.

The bank on July 22 declared a 22-cent quarterly cash dividend, payable Oct. 1 to shareholders of record on Sept. 15.

Shares (NYSE: BXS) closed Thursday at $22.36, compared to a 52-week range of $15.60 to $31.90.[[In-content Ad]]