BancorpSouth, Inc. (BXS) has reported a 68.93 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $38.09 million, or $0.41 a share in the quarter, compared with $22.55 million, or $0.24 a share for the same period last year.
Revenue during the quarter grew 5.49 percent to $184.48 million from $174.89 million in the previous year period. Net interest income for the quarter rose 3.11 percent over the prior year period to $114.61 million. Non-interest income for the quarter rose 9.49 percent over the last year period to $70.87 million.
Net interest margin contracted 10 basis points to 3.46 percent in the quarter from 3.56 percent in the last year period. Efficiency ratio for the quarter improved to 67.71 percent from 79.30 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Our first quarter results reflect consistent improvement in our financial results, highlighted by continued balance sheet growth, disciplined expense control, and continued share repurchase activity," remarked Dan Rollins, chairman and chief executive officer. "We reported deposit growth for the quarter of $354.7 million, or 12.3 percent on an annualized basis. While first quarter is typically seasonally high for deposit growth, this growth is reflective of our teammates' continued commitment to broadening customer relationships and growing core deposits. Total operating expenses declined compared to both the first and fourth quarters of 2016, resulting in a decline in the operating efficiency ratio - excluding MSR - to 68.4 percent. Finally, we continue to be active in our share repurchase program, as we repurchased just over 1.6 million shares during the quarter at a weighted average price of $30.62 per share."
Liabilities outpace assets growth
Total assets stood at $14,866.05 million as on Mar. 31, 2017, up 6.75 percent compared with $13,926.40 million on Mar. 31, 2016. On the other hand, total liabilities stood at $13,163.66 million as on Mar. 31, 2017, up 7.49 percent from $12,246.60 million on Mar. 31, 2016.
Loans outpace deposit growth
Net loans stood at $10,676.50 million as on Mar. 31, 2017, up 3.47 percent compared with $10,318.19 million on Mar. 31, 2016. Deposits stood at $12,042.84 million as on Mar. 31, 2017, up 4.84 percent compared with $11,486.70 million on Mar. 31, 2016.
Loans to deposits ratio was 89.69 percent for the quarter, down from 90.93 percent for the previous year quarter.
Noninterest-bearing deposit liabilities were $3,401.35 million or 28.24 percent of total deposits on Mar. 31, 2017, compared with $3,103.32 million or 27.02 percent of total deposits on Mar. 31, 2016.
Investments stood at $2,540.89 million as on Mar. 31, 2017, up 26.01 percent or $524.51 million from year-ago. Shareholders equity stood at $1,702.39 million as on Mar. 31, 2017, up 1.35 percent or $22.60 million from year-ago.
Return on average assets moved up 39 basis points to 1.04 percent in the quarter from 0.65 percent in the last year period. At the same time, return on average equity increased 348 basis points to 8.92 percent in the quarter from 5.44 percent in the last year period.
Credit quality improves
Bancorpsouth recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 15.81 percent or $16.91 million to $90.02 million on Mar. 31, 2017 from $106.93 million on Mar. 31, 2016. Nonperforming assets to total loans was 0.83 percent in the quarter, down from 1.02 percent in the last year period.
Capital ratios deteriorate
Bancorpsouth witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 9.95 percent for the quarter, down from 10.61 percent for the previous year quarter. Equity to assets ratio was 11.45 percent for the quarter, down from 12.06 percent for the previous year quarter. Book value per share was $18.44 for the quarter, up 3.65 percent or $0.65 compared to $17.79 for the same period last year.
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