Regional bank BancorpSouth Corp., which is building a new headquarters for its local operations in River Ranch, said profit in 2013's second quarter rose less than 1 percent from the same three months of 2012, as an early-retirement buyout drove up costs.
TUPELO, Miss. (AP) — Regional bank BancorpSouth Corp. said profit in 2013's second quarter rose less than 1 percent from the same three months of 2012, as an early-retirement buyout drove up costs.
BancorpSouth, which is building a new headquarters for its Lafayette operations in River Ranch, posted quarterly profit of $20.8 million, or 22 cents per share Tuesday, up slightly from $20.6 million or 22 cents per share in 2012's second quarter. Without a $10.9 million charge for the buyouts, earnings would have risen by 7 cents per share.
Analysts polled by FactSet had estimated 24 cents per share, on average.
BancorpSouth said it would also redeem $125 million trust preferred securities in the third quarter, using $75 million in cash and borrowing $50 million. Redeeming the securities is projected to save $9.1 million a year in interest costs, about the same yearly savings as the employee buyouts.
CEO Dan Rollins said the two moves position the bank for growth.
"Much progress was made during the second quarter toward improving our cost structure and turning our attention toward growth," Rollins said in a statement.
The company set aside $3 million for future bad loans, down from $6 million a year ago. BancorpSouth said loans increased by $97.2 million, or 1.1 percent, from the first quarter of 2013, the first time loans have grown over the most recent quarter in more than three years.
BancorpSouth's return on assets fell to 0.63 percent. That key measure of profitability has bounced around in recent quarters at the bank, and it trails statewide and national averages. In 2013's first quarter, BancorpSouth had return on assets of 0.64 percent, compared to 0.84 percent for all banks based in Mississippi and 1.12 percent for all banks nationwide.
The amount that the company collected in interest from borrowers, net of what it paid out to savers, rose to $95 million. However, the net interest margin, a measure of that spread divided by all loans, ticked down to 3.36 percent. Low interest rates have generally caused that spread, which is the bread-and-butter of bank profits, to narrow. To make up, BancorpSouth emphasized that it continues boosting noninterest revenue, such as mortgage origination fees and insurance commissions.
Based in Tupelo, the $13.2 billion bank has offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas.
School board members Mark Babineaux, Hunter Beasley and Tehmi Chassion can vote to fire Cooper — because we all know that’s exactly what they’ll do.
District 2 school board candidate Simon Mahan is hoping to unseat first-term incumbent and former Carencro Mayor Tommy Angelle in the Nov. 4 election.
District Attorney Mike Harson is showing his desperation by falsely attributing quotes to his opponent and blocking journalists from his social media.
The governor is traveling the country laying the groundwork for a possible 2016 presidential campaign, but his approval ratings at home hover well below 50 percent.
State District Judge Bob Downing extended the order and delayed a planned Wednesday hearing about a permanent injunction while negotiations continue between Attorney General Buddy Caldwell and the waste disposal site operator.
New Louisiana higher education commissioner Joseph Rallo will be paid more than his predecessor.
Elijah McGuire and Alonzo Harris each had four rushing touchdowns, and Louisiana-Lafayette rolled to 419 yards on the ground in a 55-40 victory over Arkansas State on Tuesday night.
Bill and Hillary Clinton are the validators-in-chief for Democrats struggling through a bleak campaign season in states where President Barack Obama is deeply unpopular.
President Barack Obama is turning to black radio listeners to plead for midterm votes, a targeted approach to drum up Democratic support at a time when many candidates don't want him around in person.
WaPo Watergate editor Ben Bradlee dies; Clintons stump for Dems; Liberians stranded and more national and international news for Wednesday, October 22, 2014.
Wednesday's Blogs from the Bog!
"I am extremely disheartened by the political machines that are attempting to hijack my efforts along with others that advocate for children."
Landrieu, who is fighting to keep her seat for a fourth term, said that Ebola is serious and precautions should be taken, but she accused Republicans of using the virus outbreak in West Africa to "create fear" here at home.
Law enforcement agencies are participating in a "Louisiana Heroin Summit," designed to address the recent rise in heroin use and drug-related deaths around the state.
State education officials are preparing to release performance scores for public schools and public school districts.
Saints coach Sean Payton is starting a new week by emphasizing, repeatedly, the many good things he noticed during New Orleans' latest loss.
We will be offering our recommendations on the constitutional amendments tomorrow.
The justices did not comment in leaving in place lower court rulings that dismissed the lawsuits against BP and other companies involved in the worst U.S. offshore oil spill.
White registration is down by 7,700 voters while black registration has shot up by 7,100 voters.
Even though it had been rumored for months, U.S. Sen. Mary Landrieu finally pulled the trigger recently on a major campaign shakeup that moved control over to a few Big Easy insiders.
Louisiana's health department says it will seek law changes to stop billing sexual assault victims for exams and tests.
It wasn’t the historic slashes to higher ed funding or the ensuing tuition spikes that recently had LSU’s student body and faculty riled up in collective outrage.
Will $400 be enough for the re-election campaign of LPSB's Hunter Beasley to overcome two years of holding our school system hostage and hurting the education of our children all because of a personal dislike of the superintendent?
Saints tight end Jimmy Graham said Friday he expects his playing status in Detroit to be decided by coach Sean Payton on Sunday, shortly before the game.
Lawmakers have sidestepped a decision on whether they accept claims from Gov. Bobby Jindal's administration that the state closed last year's books with a nearly $179 million surplus.