BancorpSouth, Inc. (BXS) has reported a 77.95 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $37.67 million, or $0.40 a share in the quarter, compared with $21.17 million, or $0.22 a share for the same period last year.
Revenue during the quarter grew 4.89 percent to $187.35 million from $178.62 million in the previous year period. Net interest income for the quarter rose 3.74 percent over the prior year period to $115.39 million. Non-interest income for the quarter rose 8.28 percent over the last year period to $72.96 million.
BancorpSouth, Inc. has made provision of $1 million for loan losses during the quarter.
Net interest margin contracted 12 basis points to 3.46 percent in the quarter from 3.58 percent in the last year period. Efficiency ratio for the quarter improved to 68.95 percent from 81.86 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Earnings for the quarter benefitted from the positive MSR valuation adjustment of $11.2 million as a result of the rising interest rate environment," remarked Dan Rollins, BancorpSouth chairman and chief executive officer. "Otherwise, while seasonal headwinds in several of our non-interest product offerings prevented sequential quarter improvement in certain of our operating metrics, we continue to grow our Company. We reported net loan growth of $153.2 million, or 5.7 percent annualized, while total deposits grew $98.1 million, or 3.4 percent annualized. Credit quality continues to remain stable as well, reflected by our provision for credit losses for the quarter of $1.0 million. Finally, we continue to focus on controlling costs. Total operating expenses declined by over $5 million in 2016 compared to 2015."
Liabilities outpace assets growth
Total assets stood at $14,724.39 million as on Dec. 31, 2016, up 6.71 percent compared with $13,798.66 million on Dec. 31, 2015. On the other hand, total liabilities stood at $13,000.50 million as on Dec. 31, 2016, up 7.06 percent from $12,143.22 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $10,688.26 million as on Dec. 31, 2016, up 4.31 percent compared with $10,246.32 million on Dec. 31, 2015. Deposits stood at $11,688.14 million as on Dec. 31, 2016, up 3.15 percent compared with $11,331.16 million on Dec. 31, 2015.
Loans to deposits ratio was 92.50 percent for the quarter, up from 91.54 percent for the previous year quarter.
Noninterest-bearing deposit liabilities were $3,250.54 million or 27.81 percent of total deposits on Dec. 31, 2016, compared with $3,031.53 million or 26.75 percent of total deposits on Dec. 31, 2015.
Investments stood at $2,531.68 million as on Dec. 31, 2016, up 21.58 percent or $449.35 million from year-ago. Shareholders equity stood at $1,723.88 million as on Dec. 31, 2016, up 4.13 percent or $68.44 million from year-ago.
Return on average assets moved up 41 basis points to 1.02 percent in the quarter from 0.61 percent in the last year period. At the same time, return on average equity increased 360 basis points to 8.69 percent in the quarter from 5.09 percent in the last year period.
Nonperforming assets to total loans was 1.01 percent in the quarter, down from 1.06 percent in the last year period.
Capital ratios deteriorate
BancorpSouth, Inc. witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 10.32 percent for the quarter, down from 10.61 percent for the previous year quarter. Equity to assets ratio was 11.71 percent for the quarter, down from 12 percent for the previous year quarter. Book value per share was $18.40 for the quarter, up 4.66 percent or $0.82 compared to $17.58 for the same period last year.
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