BancorpSouth (BXS) Tops Q4 EPS by 3c

January 22, 2020 4:32 PM EST

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BancorpSouth (NYSE: BXS) reported Q4 EPS of $0.63, $0.03 better than the analyst estimate of $0.60.

  • 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.

"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. Finally, our ability to maintain strong credit quality and improve our efficiency has been instrumental in our success."

"As we look at our fourth quarter results, the highlights are much the same. We reported net operating income – excluding MSR – of $67.8 million, or $0.65 per diluted common share, which represents an increase of 14.0 percent compared to the fourth quarter of 2018. We had another great quarter of organic deposit growth, which totaled $385 million, or 9.5 percent annualized. We were also active in the capital markets during the quarter, raising $300 million from the offering of subordinated debt and $172.5 million from the offering of preferred stock. These transactions allowed us to take advantage of historically low interest rates and improve our capital structure. As we move into 2020, efficiently managing and deploying this additional capital will be of utmost importance."

For earnings history and earnings-related data on BancorpSouth (BXS) click here.

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