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.
The Board of Elementary and Secondary Education has stalled action on a $3.5 billion annual school funding formula due to state lawmakers by March 15.
The New Orleans Saints have yet to make it official as of this writing, but popular wide receiver Lance Moore has reportedly been cut by the team to free up salary-cap space on the roster.
While two medical marijuana bills are slated for the upcoming legislative session, what some Louisianans might not know is that the plant was approved for therapeutic use by state lawmakers in 1991.
The agenda is shaping up to be lighter than in previous years. But Jindal is term-limited, with fewer than two years remaining in office, and he saw his last big initiative — a proposed rewrite of Louisiana tax law — collapse without getting a vote in 2013.
Sharper has been held without bail because of an arrest warrant issued by Louisiana authorities accusing him and another man of raping two women.
Here's your daily look at late-breaking national and international news, upcoming events and the stories that will be talked about Friday, March 07, 2014:
Two Lafayette men have been revealed by police as the infamous duo behind a caper that shook our fair city to its core.
The Lafayette Parish School Board has received a second letter of demand related to last year’s insurance debacle, this time from Key Benefit Administrators claiming it’s owed $93,000 from the school system.
The Louisiana coastline is vanishing faster than mappers can keep track.
A bill that would have overridden local ordinances prohibiting public and private employers from discriminating against lesbian, gay and transgender people has been pulled within less than a week of being filed.
The panel that selects nominees for a controversial New Orleans area flood control board — a board that is suing more than 90 oil, gas and pipeline companies — is set to discuss legislation affecting its independence.
State prison officials cannot keep secret the seller and manufacturer of the two drugs purchased for executions at the Louisiana State Penitentiary, a federal judge ruled Wednesday.
State lawmakers will not appeal a judge's ruling that it was improper to use $3.7 million from a probation and parole officers' retirement fund to balance the state's operating budget.
Conservatives have been losing their minds over this satirical bit on the Colbert Report.
The Lafayette Parish School Board leaves a lot to be desired, but is scrapping the election process in favor of an appointed board the answer?
The House approved legislation Tuesday night to roll back a recently enacted overhaul of the federal flood insurance program, after homeowners in flood-prone areas complained about sharp premium increases.
The NFL has formally designated New Orleans' Jimmy Graham as a tight end for the purposes of his franchise tag value, which is now set at $7.05 million next season unless Graham and the Saints subsequently agree on a long-term deal.
A federal appeals panel ruled Monday that businesses don't have to prove that they were directly harmed by BP's 2010 Gulf Of Mexico oil spill to collect settlement payments.
The Louisiana Department of Transportation and Development has closed Interstate 10 from I-49 in Lafayette to Seigen Lane in Baton Rouge.
Jim Bernhard, who engineered the sale of The Shaw Group for $3 billion, recently has told several people involved in Democratic politics that he intends to run for governor in 2015.
A New Orleans levee board wants to hold the oil and gas industry accountable for decades of damage to our state’s coastline, but the Legislature may be poised to put the kibosh on the suit.
New standards curb elective induction
CVS stops tobacco sales
If an Acadia Parish fiddler misses a note while swatting a fly, will a St. Martinville accordionist learn “Ma ‘Tite Fille”?
(It's good, it's bad and it's just crazy)