From the Vault: Area banks' second-quarter results

The Birmingham, Ala.-based financial company posted earnings per diluted share, excluding merger-related charges, of 39 cents, down 43 percent from 2007 and down 29 percent from the first quarter of this year.

The company said pre-tax earnings reflect the continuing trouble in the credit market; results include a provision for loan losses of $309 million, $128 million more than in the first quarter.

Regions also said it would reduce its quarterly cash dividend to 10 cents from 38 cents as of Oct. 10 in order to retain nearly $780 million of capital.

Shares of Regions Financial (NYSE: RF) closed July 30 at $9.74, compared to a 52-week range of $6.41 to $33.50.

UMB reports 18% earnings increase

Kansas City-based UMB Financial Corp. on July 22 reported second-quarter earnings of $23.7 million, up 18.2 percent from the same quarter in 2007.

Per-share earnings were 58 cents, up from 48 cents last year.

Net interest income was up 16.1 percent, noninterest income increased 9.2 percent and noninterest expense grew by 8.2 percent.

Loan balances as of June 30 were $4.1 billion, up 3.8 percent from the same time last year. Increases were seen in commercial, financial, agricultural, real estate construction and real estate loans.

Consumer loans, meanwhile, were down 27.3 percent.

Shares (Nasdaq: UMB) closed July 30 at $55.30, compared to a 52-week range of $34.95 to $57.89.

Bank of America net income sinks 41%

Bank of America saw net income sink 41 percent in the second quarter compared to the record-setting figure it hit during the same quarter last year.

The Charlotte, N.C.-based bank on July 21 reported second-quarter net income of $3.41 billion, down from $5.76 billion posted a year ago. Earnings per share were 72 cents, a 44 percent decrease from $1.28 per share last year.

Net revenue, however, rose to a record $20.32 billion. Net interest income was up 25 percent to $10.94 billion, noninterest income fell 14 percent to $9.69 billion, and noninterest expense climbed 4 percent to $9.56 billion.

The day after the second quarter closed, Bank of America acquired Countrywide Financial Corp., which posted a $2.33 billion second-quarter net loss.

Shares (NYSE: BAC) closed July 30 at $33.61, compared to a 52-week range of $18.44 to $52.96.

Great Southern earnings fall 13 cents per share

Springfield-based Great Southern Bancorp Inc. on July 17 reported preliminary earnings for the second quarter of 47 cents per share, down from 60 cents a year ago.

Net income for the quarter was $6.3 million, down from $8.2 million in second-quarter 2007.

Net interest income was $18.13 million, down from $35.97 million a year ago, while noninterest income was $9.86 million, compared to $20 million last year. Noninterest expenses, meanwhile, totaled $13.56 million, down from $27.67 million last year.

“Asset quality and the resolution of credit issues remain our priority,” President and CEO Joseph W. Turner said in a news release. “We made a conscious effort during the second quarter to limit the company’s loan growth.”

Results follow a first quarter that included a $35 million write-off in loans made to failed Arkansas bank ANB Financial, which led to a $15.15 million net loss for Great Southern during that period.

Great Southern shares (Nasdaq: GSBC) closed July 30 at $10.98, compared to a 52-week range of $7.73 to $28.

BancorpSouth announces 14 percent earnings growth

Mississippi-based BancorpSouth tallied earnings of 49 cents per diluted share in the second quarter, according to results released July 17.

The per-share revenue was a 14 percent increase from the same period in 2007, due in part to a 3 percent increase in net interest revenue during the same period and a loan demand increase of 5.7 percent compared to the previous year and 2.7 percent growth from first-quarter 2008.

Shares of BancorpSouth (NYSE: BXS) closed July 30 at $21.38, compared to a 52-week range of $15.15 to $26.50.

Guaranty Bank revision produces net loss

Springfield-based Guaranty Federal Bancshares Inc. on July 30 revised its second-quarter earnings to reflect an additional $5 million loan loss provision.

The revision produces a quarterly net loss of $2.5 million, or 95 cents per diluted share. The bank originally reported second-quarter earnings of 26 cents per share on $681,000 in net income.

The loss compares to a 23-cent per share gain in the first quarter and a 50-cent per share gain on $1.42 million in second-quarter 2007 net income.

“The current economic environment remains very challenging and credit quality deterioration is the overriding issue for all financial services companies,” Guaranty Bank CEO and President Shaun Burke said in the revised earnings release.

Guaranty Bank shares (Nasdaq: GFED) closed July 30 at $13.10, compared to a 52-week range of $12.15 to $30.50.

Commerce’s 2Q profit increases

Kansas City-based Commerce Bancshares Inc. on July 15 announced second-quarter earnings up 2.7 percent from a year ago.

Per-share earnings were 77 cents, up from 75 cents in second-quarter 2007. Net income for the quarter was $56 million, up from $55.6 million last year.

The return on average assets for the quarter was 1.37 percent, and the return on average equity was 14.1 percent.

Net interest income grew 8.2 percent to $144.8 million, a result of increases in loans and deposits and a stronger net interest margin. Noninterest income was up 9.2 percent to $102.7 million, due to growth in bank-card, corporate cash management and bond trading income.

Shares (Nasdaq: CBSH) closed July 30 at $44.41. The 52-week range is $36.50 to $46.32.

U.S. Bancorp earnings down 19 percent

Minneapolis-based U.S. Bancorp reported on July 15 that earnings per diluted share dropped 18.5 percent in the second quarter compared to the same period in 2007.

Shares earned 53 cents in second-quarter 2008, down 12 cents from a year ago. Net income totaled $950 million, down 17.8 percent from a year ago.

Net interest income totaled $1.91 billion, up 15.6 percent from the second quarter of 2007. The company posted net charge-offs of $396 million for the quarter, in addition to an incremental provision for credit losses of $200 million.

Shares of U.S. Bancorp (NYSE: USB) closed July 30 at $31.03, compared to a 52-week range of $20.57 to $35.25.