Servicing a Winner For BancorpSouth
BancorpSouth's earnings per share rose 36.4% from a year earlier to $0.45 in the second quarter of 2006, with a gain in the value of mortgage servicing rights contributing to the bank's strength.
The company's net interest margin was 3.75%, a nine basis point increase from the year-earlier period. Net income rose 37.6% to $35.5 million in the quarter.
Aubrey Patterson, chairman and CEO, said in a news release that the company achieved its third consecutive quarterly increase in net interest income due to solid loan and deposit growth, focused asset liability management and strong credit quality. The bank also benefited from a reduction in the allowance for credit losses related to Hurricane Katrina.
BancorpSouth said that it posted a positive $6.5 million gain in the value of its mortgage servicing asset in the second quarter. That helped boost non-interest revenue by 24.6% to $53.6 million in the second quarter of 2006. (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com