BancorpSouth Bank Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2017; Provides Effective Tax Rate Guidance for the Year 2018
January 25, 2018 at 03:00 am IST
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BancorpSouth Bank reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported net interest revenue of $121,386,000 against $115,387,000 a year ago. Income before income taxes was $58,079,000 against $55,843,000 a year ago. Net income was $37,523,000 against $37,670,000 a year ago. Return on average assets was 1.01% against 1.02% a year ago. Return on average shareholders equity was 8.75% against 8.69% a year ago. Return on tangible equity was 10.67% against 10.70% a year ago. Diluted earnings per share were $0.41 against $0.40 per share a year ago. Operating earnings per share was $0.42 against $0.40 per share a year ago. Total interest revenue was $132,276,000 against $123,444,000 a year ago. Net operating income was $38,248,000 against $37,645,000 a year ago. Earnings benefited from a positive mortgage servicing rights valuation adjustment of $2.4 million. Additionally, the company had 2 other items impact the fourth quarter results that the company consider to be non-operating. First, the company incurred merger expenses for around $700,000; and second, the company recorded an additional income tax expense of approximately $600,000 to revalue the company's net deferred tax asset. Net operating income, excluding MSR was $36.8 million or $0.41 per diluted share. This represents an increase of $0.08 per share or 24% compared to the fourth quarter of 2016.
For the year, the company reported net interest revenue of $474,036,000 against $453,452,000 a year ago. Income before income taxes was $231,623,000 against $196,444,000 a year ago. Net income was $153,033,000 against $132,728,000 a year ago. Return on average assets was 1.04% against 0.93% a year ago. Return on average shareholders equity was 8.99% against 7.80% a year ago. Return on tangible equity was 10.97% against 9.47% a year ago. Diluted earnings per share were $1.67 against $1.41 per share a year ago. Operating earnings per share was $1.67 against $1.51 per share a year ago. Book value per share as on December 31, 2017 was $18.97 against $18.40 per share a year ago. Tangible book value per share as on December 31, 2017 was $15.44 against $14.95 per share a year ago. Total interest revenue was $512,991,000 against $483,179,000 a year ago. Net operating income was $153,077,000 against $142,062,000 a year ago. Net operating income excluding the MSR change was $152 million or $1.66 per diluted share, which represents an increase of $0.16 per share or 11% compared to 2016.
For the quarter, the company reported net charge-offs of $1.8 million, compared with $3.2 million a year ago.
With the new federal statutory rate of 21%, the company expects the company's combined effective tax rate for 2018 to be between 23% and 25%.
Cadence Bank (the Bank) is a regional banking franchise with approximately 350 branch locations across the South and Texas. The Bank provides consumers, businesses, and corporations with a range of banking and financial solutions. The Bank's services and products include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized lending, asset-based lending, commercial real estate, equipment financing, correspondent banking, small business administration (SBA) lending, foreign exchange, wealth management, investment and trust services, financial planning, retirement plan management. The Bank offers baking solution in checking accounts, savings accounts, mortgages, investment management, credit cards, online and mobile banking, debit cards, treasury management, wealth management, trusts, business loans, business online banking, and merchant services.
BancorpSouth Bank Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2017; Provides Effective Tax Rate Guidance for the Year 2018