Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Most Of The Improvement Is Over For Bancorp South

Bancorp South (NYSE:BXS) has had a tremendous run over the last 12 months as the bank's credit profile has rocketed back towards health. It was only two years ago that, BXS had nonperforming loans totaling $371 million or 4.0% of total loans. Since then though the bank has chocked up quarter after quarter of improving health and by 3Q2013, the NPL total was just over $120 million or 1.38% of loans. This rapid rise in credit quality has helped drive the bank's profitability and stock price for several years now, but the party is likely coming to an end in short order.

(click to enlarge)

Realistically, very few banks have NPL's below 0.5% of total loans these days,...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details