BancorpSouth reports net income of $12.8M in 2Q

Tupelo, Miss.-based BancorpSouth Inc., the holding company for BancorpSouth Bank, posted net income of $12.8 million, or earnings of 15 cents for diluted share for the second quarter, compared to a net loss of $12.6 million for the same quarter in 2010.
 
"Our stronger earnings are primarily the result of a reduction in our provision for credit losses for the second quarter of 2011 to $32.2 million from $62.4 million for the second quarter of 2010 and $53.5 million for the first quarter of 2011,” said BancorpSouth Chairman and CEO Aubrey Patterson, in a news release.
 
According to the earnings report, nonperforming loans dropped 10.6 percent from the first quarter to $379.8 million, primarily as the result of a $39.7 million decrease in nonaccural loans.
 
BancorpSouth also reported a $14.8 million increase in other real estate owned compared to the first quarter, for a total of $151.2 million at the end of the second quarter.
 
During the quarter, the company sold $88.9 million in securities, resulting in a gain of $9.8 million. The company also repaid $75 million in long-term Federal Home Loan Bank advances, incurring a prepayment penalty of $9.8 million, but company leaders anticipate that the combination of those transactions will have a slightly positive impact on net interest income, the release said.
 
The report also showed:

• Net interest revenue was $109.9 million for the second quarter of 2011, up 0.5 percent from $109.3 million for the same quarter of 2010.
• Total assets were unchanged from a year ago at $13.4 billion for the second quarter.
• Total deposits were up 0.8 percent to $11.3 billion for the quarter, compared to $11.2 billion for second-quarter 2010.

"Our primary focus going forward is to build on the favorable results achieved for the second quarter by working to resolve credit issues,” Patterson said. “We are also continuing our work to improve our core operating results by enhancing organic revenue growth and controlling expenses. Recent progress in these efforts has resulted in the hiring of additional mortgage origination staff and the decision to close 23 branches as a part of our branch optimization project."

None of BancorpSouth's six branches in Springfield were subject to the closure plan, according to Springfield Business Journal archives.

BancorpSouth operates roughly 312 locations.

Shares of the company (NYSE: BXS) were trading at $13.82 as of 11:35 a.m., compared to a 52-week range of $11.57 to $16.75.[[In-content Ad]]