BancorpSouth

BancorpSouth has reported its fourth-quarter and year-end financials.

BancorpSouth Bank announced on Wednesday financial results for the quarter and year ended December 31, 2019.

Annual highlights for 2019 included:

-- Surpassed $20 billion in total assets for the first time in the Company’s history, ending the year at $21.1 billion in total assets.

-- Achieved record net income of $234.3 million, or $2.30 per diluted common share, and record net operating income – excluding mortgage servicing rights (“MSR”) – of $255.4 million, or $2.51 per diluted common share, which represents an increase of 12.6 percent on a per share basis compared to 2018.

-- Net interest margin – excluding accretable yield – increased to 3.72 percent from 3.64 percent for 2018.

-- Generated organic total deposit growth of approximately $1.0 billion, or 7 percent for the year.

-- Continued strong credit quality reflected by provision for credit losses of $1.5 million for the year; net charge-offs of $2.5 million for 2019, which represents 0.02 percent of average loans.

-- Improvement in cost structure; operating efficiency ratio – excluding MSR – improved to 64.9 percent compared to 66.6 percent for 2018.

-- Completed mergers with Casey Bancorp, Inc., Merchants Trust, Inc., Van Alstyne Financial Corporation and Summit Financial Enterprises, Inc. – collectively contributing $1.0 billion in loans and $1.3 billion in deposits.

-- Repurchased 2,466,438 shares of outstanding common stock at a weighted average price of $28.20 per share.

Highlights for the fourth quarter of 2019 included:

-- Achieved quarterly net income of $65.8 million, or $0.63 per diluted common share.

-- Earnings were positively impacted by a pre-tax MSR valuation adjustment of $3.2 million, while merger-related expenses totaling $5.8 million adversely impacted earnings for the quarter.

-- Achieved net operating income – excluding MSR – of $67.8 million, or $0.65 per diluted common share, which represents an increase of 14.0 percent on a per share basis compared with the fourth quarter of 2018.

-- Generated organic total deposit growth for the quarter of approximately $385 million, or 9.5 percent on an annualized basis.

-- Continued strong credit quality reflected by net recoveries of $2.2 million and no recorded provision for credit losses for the quarter; non-performing and classified asset levels remained stable.

-- Repurchased 293,357 shares of outstanding common stock at a weighted average price of $32.46 per share.

-- Enhanced capital structure through underwritten public offerings of $300 million of the company’s 4.125 percent Fixed-to-Floating Rate Subordinated Notes and $172.5 million of its 5.50 percent Series A Non-Cumulative Perpetual Preferred Stock.

-- Completed the acquisition of Texas First Bancshares, Inc., the parent company of Texas First State Bank, effective January 1, 2020, which will add over $185 million in loans and approximately $370 million in deposits to the company’s Central Texas presence in the first quarter of 2020.

The company reported net income of $65.8 million, or 63 cents per diluted common share, for the fourth quarter of 2019, compared with net income of $47.1 million, or 47 cents per diluted common share, for the fourth quarter of 2018 and net income of $63.8 million, or 63 centers per diluted common share, for the third quarter of 2019.

The company reported net operating income – excluding MSR – of $67.8 million, or 65 cents per diluted common share, for the fourth quarter of 2019, compared with $56.4 million, or 57 cents per diluted common share, for the fourth quarter of 2018 and $69.7 million, or $0.69 per diluted common share, for the third quarter of 2019.

Additionally, the company reported net income of $234.3 million, or $2.30 per diluted common share, for the year ended December 31, 2019 compared with $221.3 million, or $2.23 per diluted common share, for the year ended December 31, 2018. T

The company reported net operating income – excluding MSR – of $255.4 million, or $2.51 per diluted common share, for the year ended December 31, 2019 compared with $220.7 million, or $2.23 per diluted common share, for the year ended December 31, 2018.

The Board of Directors of the Company declared quarterly cash dividends of $0.185 per share of common stock and $0.34375 per share of Series A Preferred Stock. The common stock dividend is payable on April 1, 2020 to shareholders of record at the close of business on March 13, 2020. The preferred stock dividend is payable on February 20, 2020 to shareholders of record at the close of business on February 5, 2020.

“We are pleased to report record financial results for 2019,” remarked Dan Rollins, chairman and chief executive officer. “First and foremost, we are excited to pass the $20 billion mark in total assets. This achievement is a tremendous milestone for our company and a testament to the hard work and success of our teammates in growing our Company both organically and through acquisitions.

“We also reported record annual income, both on a GAAP basis and an operating basis. Our net operating income – excluding MSR – of $255.4 million, or $2.51 per diluted common share, represented an increase of over 12 percent compared to 2018. While the net interest margin has been under recent pressure primarily as a result of a shift in earning asset mix, we were able to improve our net interest margin – excluding accretable yield from 3.64 percent for 2018 to 3.72 percent for 2019. The earnings asset mix shift was attributable primarily to our ability to grow deposits approximately $1.0 billion, or 7 percent, organically while loans were essentially flat for the year on an organic basis.”

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