BancorpSouth has delayed the closing of two bank acquisitions after regulators took issue with the Tupelo, Miss., company's compliance programs.
The $13 billion-asset company said in a press release late Monday that it has pushed back the deadlines for its purchases of Oauchita Bancshares in Monroe, La., and Central Community in Temple, Texas, to June 30, 2015. The move came after all parties determined that "additional time will be required to obtain regulatory approvals," BancorpSouth said in the release.
BancorpSouth disclosed that federal bank regulators have identified concerns about the company's procedures, systems and processes tied to its Bank Secrecy Act and anti-money-laundering programs. In addition, the Consumer Financial Protection Bureau is conducting a review of the company's fair lending practices.
"We continue to believe our proposed mergers are in the best interest of our shareholders, customers and communities," Dan Rollins, BancorpSouth's chairman and chief executive, said in the release. "While disappointed in the delay we are working diligently to resolve the compliance concerns that have been identified and to make the necessary improvements."
BancorpSouth is the latest acquirer to get snagged on regulatory compliance. M&T Bank is still awaiting a green light to buy Hudson City after regulators instructed M&T to fix shortcomings in its anti-money-laundering and other compliance programs. Cullen/Frost Bankers received regulatory approval to buy WNB Bancshares in May, but only after the Federal Reserve Board demanded fair-lending reforms.
Separately, BancorpSouth announced that its second-quarter earnings rose 49% from a year earlier, to $30.9 million. Net interest income rose 5%, to $103 million, while noninterest income fell 8%, to $69.8 million. Noninterest expenses fell 10%, to $128 million.