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BancorpSouth shares hit a new low on surprise Q2 loss
July 23, 2010 / 3:35 PM / in 7 years

BancorpSouth shares hit a new low on surprise Q2 loss

* Q2 loss $0.15/shr vs est. EPS $0.18

* Bad-loan provisions more than triple

* Shares fall as much as 13 pct

By Jochelle Mendonca

BANGALORE, July 23 (Reuters) - Shares of BancorpSouth Inc (BXS.N) fell to a new low on Friday, a day after the lender posted a surprise second-quarter loss as it set aside more money to cover bad loans.

“My view is that it is going to take them a while to work through a higher level of non-performing loans than I would have expected,” Raymond James analyst Michael Rose said.

Rose, who cut his rating on the bank from “outperform” to “market perform”, said material improvement in asset quality and earnings had now been pushed to the second half of 2011 to 2012.

For the second quarter, provisions for loan losses more than tripled to $62.4 million.

The Tupelo, Mississippi-based company posted a net loss of $12.6 million, or 15 cents a share. [ID:nASA00JSZ]

Analysts were expecting a profit of 18 cents a share, excluding items, according to Thomson Reuters I/B/E/S.

Shares of the company fell 13 percent to set a new low of $14.49. They pared some losses to trade at $14.78, down 11 percent, in morning trade on the New York Stock Exchange. (Reporting by Jochelle Mendonca in Bangalore; Editing by Vyas Mohan)

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