BancorpSouth (BXS) Reports In-Line Q3 EPS

October 17, 2018 4:34 PM EDT

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BancorpSouth (NYSE: BXS) reported Q3 EPS of $0.56, in-line with the analyst estimate of $0.56. Revenue for the quarter came in at $163.16 million versus the consensus estimate of $218.18 million.

  • Record quarterly net income of $66.7 million, or $0.67 per diluted share, which represents an increase of 56 percent on a per share basis compared with the third quarter of 2017.
  • Recognized a one-time tax benefit of $11.3 million, or $0.11 per diluted share, as a result of a voluntary contribution to the Company\'s pension plan as well as a tax accounting method change related to the recognition of certain software development costs.
  • Earnings benefited from a positive pre-tax mortgage servicing rights (\"MSR\") valuation adjustment of $1.5 million.
  • Net operating income – excluding MSR – of $55.0 million, or $0.56 per diluted share.
  • Net interest margin – excluding accretable yield – of 3.62 percent remained stable compared with the second quarter of 2018.
  • Continued focus on expense control reflected by a $1.8 million decline in total operating expense compared with the second quarter of 2018.
  • Repurchased 166,721 shares of outstanding common stock at a weighted average price of $33.38 per share.
  • Completed the acquisition of Icon Capital Corporation effective October 1, 2018, which will add over $600 million in both loans and deposits to the Company\'s presence in Houston, Texas in the fourth quarter.

"Our results for the quarter are highlighted by continued strong credit quality, a decline in total operating expense, and a stable core net interest margin," remarked Dan Rollins, Chairman and Chief Executive Officer. "We continue to experience a very competitive lending environment as well as upward pressure on deposit costs. We are pleased to have maintained a stable net interest margin – excluding accretable yield – at 3.62 percent despite these rising deposit costs and slower than anticipated balance sheet growth. We are also proud of our ability to continue to challenge expenses and realize cost savings from our previous mergers, which is evidenced by the $1.8 million decline in total operating expense."

"Additionally, our third quarter income tax expense includes a one-time income tax benefit totaling $11.3 million, or $0.11 per diluted share, as a result of a voluntary pension contribution as well as a tax method change related to the recognition of software development costs. This benefit is the result of our ability to deduct these items on the Company\'s 2017 federal income tax return at the prior statutory rate of 35 percent."

"Finally, we are pleased to have recently completed our merger with Icon Bank of Texas and its parent company in Houston, Texas. We are excited about the experience and leadership Mark Reiley and John Green and their team can provide in our efforts to grow in the Houston market. We anticipate completing the operational integration of Icon during the fourth quarter of this year."

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



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