Bancorp

BancorpSouth Bank has announced financial results for the quarter ended September 30.

The bank has numerous branches across South Arkansas, including Magnolia and Taylor.

Highlights for the third quarter of 2021 included:

-- Achieved quarterly net income available to common shareholders of $70.4 million, or 65 cents per diluted common share, and net operating income available to common shareholders – excluding MSR – of $73.3 million, or $0.68 per diluted common share.

-- Generated $90.1 million in pre-tax pre-provision net revenue (PPNR), or 1.29 percent of average assets on an annualized basis.

-- Generated organic total deposit and customer repo growth of $722.2 million for the quarter, or 12.2 percent on an annualized basis, and total organic net loan growth of approximately $121.6 million, or 3.3 percent on an annualized basis, excluding Paycheck Protection Program (PPP) activity.

-- Fee income businesses continue to perform at a high level as mortgage origination volume totaled $788.9 million for the quarter while insurance commission revenue grew over 9 percent compared to the third quarter of 2020.

-- Continued stability in credit quality metrics including net recoveries of $2.1 million for the quarter; recorded negative provision for credit losses of $7.0 million for the quarter.

-- Repurchased 1,742,474 shares of outstanding common stock at a weighted average price of $28.69 per share.

-- Maintained strong regulatory capital metrics; estimated total risk-based capital of 14.27 percent at September 30, 2021 compared to 14.50 percent at June 30, 2021.

-- Recorded a charge of $2.4 million in accordance with Accounting Standards Codification (ASC) 715 "Compensation – Retirement Benefits" to reflect the settlement accounting impact of elevated lump sum retirement payments that have occurred in 2021.

-- Recently received shareholder and regulatory approval to complete merger with Cadence Bancorporation, the parent company of Cadence Bank N.A., which is expected to close effective October 29, 2021, and create an approximately $48 billion institution on a pro forma basis that will be the 6th largest bank headquartered in the Company's nine-state footprint.

"Our third quarter financial results reflect many key successes despite certain continued industry headwinds, particularly related to the net interest margin dynamics," said Dan Rollins, chairman and chief executive officer.

"While our back office and support teams have been focused on preparing for the closing and operational integration of the Cadence transaction, our customer facing teammates are continuing to generate growth. We reported deposit and customer repo growth of over $722 million for the quarter while net organic loan growth totaled approximately $122 million, which marks the second consecutive quarter of net organic loan growth. We are obviously pleased to see continued economic stability across our footprint as well as improved loan demand. We are also proud of the results reported by our fee income businesses. Our mortgage team generated $789 million in production volume for the quarter while our insurance commission revenue totaled $35.8 million, representing growth of just over nine percent compared to the third quarter of 2020."

The company reported net income available to common shareholders of $70.4 million, or 65 cents per diluted common share, for the third quarter of 2021, compared with net income available to common shareholders of $71.5 million, or 69 cents per diluted common share, for the third quarter of 2020 and net income available to common shareholders of $73.2 million, or 69 cents per diluted common share, for the second quarter of 2021.

The company reported net operating income available to common shareholders – excluding MSR – of $73.3 million, or 68 cents per diluted common share, for the third quarter of 2021, compared with $71.2 million, or 69 cents per diluted common share, for the third quarter of 2020 and $90.6 million, or 86 cents per diluted common share, for the second quarter of 2021.

Net interest revenue was $181.5 million for the third quarter of 2021, an increase of 3.2 percent from $175.9 million for the third quarter of 2020 and an increase of 0.7 percent from $180.2 million for the second quarter of 2021. The fully taxable equivalent net interest margin was 2.86 percent for the third quarter of 2021, compared with 3.31 percent for the third quarter of 2020 and 2.99 percent for the second quarter of 2021.

Yields on net loans and leases were 4.46 percent for the third quarter of 2021, compared with 4.54 percent for the third quarter of 2020 and 4.43 percent for the second quarter of 2021, while yields on total interest earning assets were 3.15 percent for the third quarter of 2021, compared with 3.77 percent for the third quarter of 2020 and 3.31 percent for the second quarter of 2021.

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