BancorpSouth announces 2Q financial results
Tupelo-based BancorpSouth, Inc. last week announced its financial results from the second quarter of 2017, which ended on June 30.
The company reported a net income of $37.9 million, or $0.41 per diluted share. This is compared to a net operating income of $38.8 million, or $0.42 per diluted share.
BancorpSouth Chairman and CEO Dan Rollins said company leadership is pleased with the second quarter results, which he said reflect continued earnings growth and improvement in many of the company's operating metrics.
“While our second quarter deposit balances reflect an expected seasonal decline, our loan growth rebounded nicely after a slower first quarter,” Rollins said. “We reported net loan growth of $216.8 million, or 8.1 percent on an annualized basis, which resulted in loans and leases surpassing $11 billion for the first time in our Company's history.”
Rollins then said the company is seeing steady improvement quarter after quarter as the company continues to grow while keeping expenses flat.
The company was negatively impacted by a pre-tax mortgage servicing rights (MSR) valuation adjustment of $1.5 million.
Financial analytics firm MIAC defines MSRs as “a contractual agreement where the right, or rights, to service an existing mortgage are sold by the original lender to another party who, for a fee, performs the various functions required to service mortgages.”
BancorpSouth reported credit quality remained stable during the second quarter, but recorded provision for credit losses of $1.0 million for the quarter.
Additionally, the company reported that total operating expenses remained flat compared to the year's first financial quarter and the second financial quarter of 2016.
“Additionally, our net interest margin increased to 3.52 percent from 3.46 percent for the first quarter of this year,” Rollins said. “The margin benefited primarily from increases in yields on our loan portfolio. We expect recent rate increases to continue to provide some benefit to our loan yields as our variable rate loans reach repricing dates over time.”
The company saw net interest revenue improve year-over-year by 4.6 percent, from $112.3 million for the second quarter of 2016 to $117.5 million for the second quarter of 2017.
BancorpSouth, Inc. is traded on the New York Stock Exchange under the symbol BXS. The company currently owns $14.8 billion in assets.
BancorpSouth Bank, a whollyowned subsidiary of BancorpSouth, Inc., operates 234 full service branch locations as well as additional mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas. The company also operates an insurance location in Illinois.