From the Vault: Area banks' fourth-quarter and year-end results

As many financial institutions report sagging year-end numbers hurt by issues in the subprime mortgage market, BancorpSouth Inc. posted gains across the board – and officials say the bank’s entrance into Springfield is partly the reason.

The Tupelo, Miss.-based company’s net income for the year was up 10.2 percent to $137.9 million, compared to $125.2 million in 2006. The year’s earnings per share were $1.69, up 7.6 percent from $1.57 a year ago.

Quarterly net income increased 14.8 percent to $32.2 million, from $28.1 million in fourth-quarter 2006, and earnings per share grew 11.4 percent to 39 cents.

“We attribute a significant portion of the company’s growth for 2007 to the acquisition of The Signature Bank,” CEO and chairman Aubrey Patterson said in a news release. “We focus on markets with diverse economies that produce steady, significant growth and that can perform consistently throughout the economic cycle.”

BancorpSouth closed last March on its merger with The Signature Bank, which was based in Springfield and had six local branches.

Shares (NYSE: BXS) closed Jan. 30 at $23.94, compared to a 52-week range of $19.01 to $26.50.

Guaranty Bank’s 2007 earnings fall 3%

Springfield-based Guaranty Federal Bancshares Inc. reported earnings per share down 20 percent for the fourth quarter and 3 percent for the year.

Earnings per share for the quarter ended Dec. 31 were 49 cents per share, down 20 percent from 61 cents per share in fourth-quarter 2007. Earnings per share for 2007 were $2.19 for the year, a 3 percent decline from $2.25 in 2006.

Net income was $1.3 million for the quarter, down 24 percent from $1.7 million the same period a year ago, and $6.1 million for the year, compared to $6.5 million in 2006.

Guaranty officials said in a news release that the declines in net income and earnings per share were results of three factors: a decrease in the company’s net interest margin due to a drop in interest rates for the period; an increase in personnel costs because of new hires in accordance with Guaranty’s growth plans; and increased expenses related to audit and compliance.

Shares (Nasdaq: GFED) closed Jan. 30 at $25.15, compared to a 52-week range of $24.45 to $30.85.

Annual income drops 9% at U.S. Bancorp

Minneapolis-based U.S. Bancorp reported quarterly net income down 14.1 percent from fourth-quarter 2006, causing a dip of 9 percent annually.

The quarter’s net income was $942 million, compared to $1.19 billion a year ago. Earnings per share for the quarter ended Dec. 31 were 53 cents, down 19.7 percent from 66 cents per share a year earlier.

Officials said in a news release the quarter’s financials were impacted by $215 million in litigation costs in a contingent obligation to Visa and $107 million in valuation losses related to securities purchased from certain money market funds.

Net income for 2007 was $4.3 billion, down 9 percent from $4.75 billion in 2006. The year’s earnings per share were $2.43, down 6.9 percent from $2.61.

Total nonperforming assets were $690 million as of Dec. 31, compared with $641 million as of Sept. 30 and $587 million as of Dec. 31, 2006.

Shares (NYSE: USB) closed Jan. 30 at $33.59, compared to a 52-week range of $27.86 to $36.84.

Trading, credit losses slash Bank of America’s earnings

A rough fourth quarter marked by trading and credit loses resulted in a 95 percent decline in Bank of America’s fourth-quarter net income compared to the same quarter a year before.

Quarterly net income was $268 million, or 5 cents per share, compared to $5.26 billion, or $1.16 per share, in fourth-quarter 2006. The 2007 fourth quarter included results from LaSalle Bank, which Bank of America purchased Oct. 1.

Primary drivers of the decrease, according to a company news release, were $5.44 billion in trading account losses compared to $460 million in profits a year earlier; $5.28 billion in collateralized debt obligation write-downs and weaker trading results; and a $1.74 billion increase in provision expense due to a $1.33 billion addition to the credit losses reserve.

For the year, the Charlotte, N.C.-based bank’s net income fell 29 percent to $14.98 billion, compared to $21.13 billion in 2006. Earnings per share in 2007 dropped 28 percent to $3.30 from $4.59 a year earlier.

Shares (NYSE: BAC) closed Jan. 30 at $42.21, compared to a 52-week range of $33.12 to $54.21.

Regions quarterly net income tumbles 80%

Regions Financial Corp. reported an 80 percent plunge in net income due partly to home builders struggling to repay loans in weakened markets.

The Birmingham, Ala.-based company had net income for the quarter ended Dec. 31 of $70.6 million, or 10 cents per share, compared to $361.6 million, or 56 cents per share, in fourth-quarter 2006.

Fourth-quarter net loan charge-offs increased to $107.5 million, compared to $63.1 million in the prior quarter. The increase was partly related to deterioration in the residential home builder loan portfolio, as distressed borrowers deal with a weakened housing demand in some of Regions’ markets.

During the quarter, Regions implemented a plan to better support that portfolio by reassigning key relationship managers to focus on work-out strategies for borrowers.

Shares (NYSE: RF) closed Jan. 30 at $24.34, compared to a 52-week range of $17.90 to $37.61.

UMB reports record annual earnings

UMB Financial Corp. on Jan. 22 reported a 24 percent increase in total year earnings compared to 2006.

The Kansas City-based financial institution reported record year-end earnings of $74.2 million or $1.77 per diluted share, up 24.2 percent from $59.8 million or $1.40 per diluted share posted in 2006.

Net interest income for 2007 was $232.7 million, up 7.1 percent from the $217.2 million posted in 2006.

For fourth-quarter 2007, earnings were $15.3 million or 37 cents per diluted share, down 3.2 percent from the $15.8 million posted in fourth-quarter 2006. Net interest income for the fourth quarter was $60.9 million, up 7.4 percent from the $56.6 million posted in the same period a year earlier.

Shares of UMB Financial Corp. (Nasdaq: UMBF) closed Jan. 30 at $40.53, compared to a 52-week range of $34.95 to $47.06.

Great Southern reports dip to 48 cents per share in 4Q

Springfield-based Great Southern Bancorp Inc. reported preliminary fourth-quarter earnings at 48 cents per share, down 10 cents from the same period a year ago.

The quarter’s earnings were negatively impacted by 5 cents per share because of a valuation write-down of $1.1 million in impaired Freddie Mac perpetual preferred stock, according to a company news release.

Preliminary earnings for the year were $2.15 per share, down 7 cents per share compared to 2006.

Loans increased $141 million, or 8 percent, from 2006, and total deposits increased $110 million, or 12 percent, from the previous year.

Net income was $6.44 million for the quarter, down from $7.99 million in fourth-quarter 2006, and $29.3 million for the year, slightly down from $30.7 million in 2006.

Shares (Nasdaq: GSBC) closed Jan. 30 at $19.20, compared to a 52-week range of $15.68 to $30.40.

Commerce quarterly earnings drop 21%

Kansas City-based Commerce Bancshares Inc. reported 60 cents per share in fourth-quarter earnings, a 21 percent decrease from 76 cents per share in fourth-quarter 2006. However, fourth-quarter 2007 figures included a $21 million pre-tax charge related to Commerce’s share of litigation costs with Visa U.S.A. Inc., according to a news release. Operating earnings per share, excluding the litigation charge, were 78 cents per share, or 3 percent higher than fourth-quarter 2006.

Quarterly net income was $43.7 million, compared to $57 million in the same period a year ago.

For the year, earnings per share were $2.82, down from $2.94 in 2006, and net income in 2007 was $206.7 million, compared to $219.8 million in 2006.

Exclusive of the Visa litigation costs, operating net income was $219.9 million, or $3 per share.

Company shares (Nasdaq: CBSH) closed Jan. 30 at $43.49, compared to a 52-week range of $38.00 to $48.35.