Review Mortgage Lenders

BancorpSouth Mortgage Center

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BancorpSouth's (BXS) Q2 Earnings Beat on Higher Revenues

Free Report ) adjusted operating earnings in second-quarter 2017 came in at 42 cents per share, beating the Zacks Consensus Estimate by 2 cents. Moreover, the company compared favorably with the year-ago quarter tally of 39 cents.
Revenues escalated aided by strong loans and deposits balances. Further, stable non-interest expenses were a positive. However, decreased mortgage lending revenues were a major drag.

Including mortgage servicing rights (“MSR”) valuation adjustment of $1.5 million, the company’s second-quarter net income amounted to $37.9 million or 41 cents per share, down from $34.7 million or 37 cents reported in the year-ago quarter.

Revenues, Loans and Deposits Escalate, Costs Stable

BancorpSouth’s second-quarter net revenue increased 2.7% year over year to $185.6 million. Revenues, however, missed the Zacks Consensus Estimate of $187.8 million.

Net interest revenue amounted to $117.

What credit unions can learn from BancorpSouth fair lending woes

BancorpSouth Bank, headquartered in Mississippi, took a $10.6 million misstep when its mortgage lending practices allegedly discriminated against African-American consumers. While the bank has not admitted to the allegations, it did agree to a proposed settlement and consent order with the CFPB and the U.S. Department of Justice of charges that the bank’s mortgage lending practices violated the Equal Credit Opportunity Act and the Fair Housing Act.

Fair lending laws and related regulations date back to the civil rights movements of the 1960s, so they’ve been around for a while now. The Fair Housing Act and the Equal Credit Opportunity Act work together to prohibit unfair and discriminatory practices based on traits such as race, color, religion, etc. While some of the allegations against BancorpSouth had to do with redlining, other areas addressed in the complaint against the institution could be levied at credit unions and therefore merit consideration. So what happened at BancorpSouth and what can credit unions learn from its mistakes?