BancorpSouth in Tupelo, Miss., reported higher third-quarter earnings after net interest and fee revenue improved from a year earlier.
The $14.6 billion-asset company said Wednesday that it earned $37.8 million, up roughly 10% from a year earlier.
Net interest revenue rose about 3% to $114.6 million as the net interest margin dropped eight basis points to 3.51%. Total loans climbed 4% to $10.7 billion as the consumer mortgage portfolio increased almost 7% and construction, acquisition and development loans rose 13%.
Noninterest revenue jumped more than 12% to $70.9 million; the primary reason was the swing to a positive mortgage servicing rights valuation adjustment of $1.8 million from a negative adjustment of $5.3 million a year earlier.
Excluding the MSR valuation adjustments, mortgage banking revenue totaled $10.5 million, up roughly 38% from a year earlier.
Noninterest expense totaled $129.5 million, about 2% higher than a year earlier as salaries and employee benefits increased by about 1% to $82.1 million.
BancorpSouth did not record a provision for credit losses after posting a $3 million credit a year earlier. Total nonperforming assets fell 10% to $102.3 million.
Last week, BancorpSouth said that it once again had to withdraw applications to buy two banks, Ouachita Bancshares in Monroe, La., and Central Community Corp. in Temple, Texas. The deals were initially announced in early 2014 but have been delayed first by issues over BancorpSouth's compliance with the Bank Secrecy Act and then over problems with its Community Reinvestment Act performance. In August the bank's CRA rating was retroactively downgraded from "satisfactory" to "needs to improve."
Both sellers have agreed to extend the deadlines of their agreements until the end of 2017.
Dan Rollins, BancorpSouth's chairman and chief executive, said in the earnings press release that the company was "disappointed" at the length of time it is taking to complete those deals but was "pleased" by the continued commitment from Central Community and Ouachita.