Noting the encouraging progress the bank has made since the beginning of the year, BancorpSouth CEO Dan Rollins said the payout "is consistent with current industry dividend payout ratios, which measure the size of a dividend payment compared to the company's net income."
Rollings further noted the bank remains "committed to lowering our cost structure, as evidenced by the recently announced Voluntary Early Retirement Program and the $125 million trust preferred securities redemption that was completed earlier this month." BancorpSouth reported net income of $20.8 million or $0.22 per share for the second quarter of 2013.
The dividend increase is the first one since the bank reduced the quarterly payout to $0.01 in the second quarter of 2011.
The board of directors said the quarterly dividend is payable on October 1 to holders of record at the close of business on September 13. The regular dividend payment equates to a $0.20-per-share annual dividend, yielding 1% based on the closing price today of BancorpSouth's stock.