BancorpSouth Inc. of Tupelo, Miss., said Tuesday that it ended 2004 on a positive note, with an increase in loans and net interest margin.
Nonetheless, fourth-quarter net income fell 15% from a year earlier and 11% from the third quarter, to $24.6 million. Full-year earnings of $110.6 million were down 16% from a year ago.
The $10.8 billion-asset company's fourth-quarter results included a $1.5 million charge for securities losses, but it said the continued narrowing of its net interest margin was mainly to blame for its earnings decline. Its margin was 3.52% last year, 3.80% in 2003, and 4.15% in 2002.
Aubrey Patterson, BancorpSouth's chairman and chief executive, said a slight expansion of the margin between the third and fourth quarters offered some hope that the downward trend might be easing. Mr. Patterson said he was also encouraged by his company's loan growth; its portfolio stood at $6.8 billion at yearend, up 10% from the end of 2003.
