BancorpSouth in Tupelo, Miss., reported weaker quarterly profit after boosting its loan-loss provision and recording lower fee income.
The $14.1 billion-asset company said in a press release Wednesday that its second-quarter earnings fell more than 12% from a year earlier to $34.7 million.
BancorpSouth recorded a $2 million provision in the second quarter; the company had a credit of $5 million a year earlier.
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The combination of smarter consumers and likely CFPB action have, oddly enough, pushed banks, especially large ones, to raise overdraft fees in recent months.
July 11 -
BancorpSouth Bank agreed Wednesday to a $10.6 million settlement with the Consumer Financial Protection Bureau and the Justice Department for allegedly discriminatory mortgage lending practices that harmed minorities.
June 29 - Mississippi
BancorpSouth in Tupelo, Miss., posted lower earnings, in part because of costs from a possible settlement of allegations related to its fair-lending practices.
April 20
Net interest income rose more than 4% to $112.3 million. Total loans increased by 5% to $10.6 billion; the net interest margin widened by 2 basis points to 3.56%. Consumer mortgages jumped roughly 7%, to $2.5 billion, and commercial real estate loans increased by 8%, to $2.3 billion.
Noninterest revenue fell 6%, to $69.7 million, as deposit service charges declined about 4%, to $11 million, and insurance commissions dropped by almost 2%, to $28.8 million.
Noninterest expense remained relatively flat at $128.7 million.
BancorpSouth agreed during the quarter to pay
BancorpSouth's acquisition plans had been stymied partly by the investigation. The company agreed in January 2014 to buy Ouachita Bancshares in Monroe, La., and Central Community Corp. in Temple, Texas, but those deals were first delayed by problems with its anti-money laundering compliance and then by the fair lending probe. The merger agreements weren't extended by a Dec. 31 deadline but are still in effect, the release said.