BancorpSouth Announces Fourth Quarter 2012 Earnings of $17.0 Million or $0.18 per Diluted Share

23 Jan, 2013, 16:01 ET from BancorpSouth, Inc.

TUPELO, Miss., Jan. 23, 2013 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended December 31, 2012.

Highlights for the fourth quarter of 2012 included:

  • The appointment of James D. Rollins III as the Company's new Chief Executive Officer.
  • Quarterly net income of $17.0 million or $0.18 per diluted share, resulting in net income of $84.3 million, or $0.90 per diluted share, for the year.
  • Mortgage production of $549.4 million, which contributed to mortgage lending revenue of $17.2 million for the quarter.
  • Other real estate owned ("OREO") sales of $27.9 million, which contributed to a 19.5 percent decline in OREO and a 10.3 percent reduction in total non-performing assets ("NPAs") from the prior quarter and reductions of 40.6 percent and 32.1 percent, respectively, compared to the end of 2011.
  • Nonaccrual loans decreased $12.5 million, or 5.7 percent, from the prior quarter and $69.6 million, or 25.1 percent, from the fourth quarter of 2011.  At the end of the quarter, 55.7 percent of nonaccrual loans were paying in accordance with their contractual terms.
  • Capital ratios continued to rise, with Tier 1 leverage and Total risk-based capital ratios increasing to 10.25 percent and 15.08 percent, respectively. 

On November 26, 2012 the Company announced that the Board of Directors had selected James D. "Dan" Rollins III as its new Chief Executive Officer.  Rollins assumed this position effective November 27, 2012, and also became a member of BancorpSouth's Board of Directors at that time.  Rollins succeeded Aubrey B. Patterson, who continues to serve as Chairman of the Board.  Rollins remarked, "I am both humbled by the confidence that the Board of Directors has placed in me and excited about working with a team of professionals who share a desire and commitment to move our Company forward.  While I was only a part of the team for the last month of 2012, I believe that the results reported for the year are the product of a lot of hard work and effort over a number of quarters to continue to improve the Company's credit quality and operating performance."

The Company reported net income of $17.0 million, or $0.18 per diluted share, for the fourth quarter of 2012 compared with net income of $13.3 million, or $0.16 per diluted share, for the fourth quarter of 2011 and net income of $23.8 million, or $0.25 per diluted share, for the third quarter of 2012.  The Company reported total net income for 2012 of $84.3 million, or $0.90 per diluted share, compared with $37.6 million, or $0.45 per diluted share, for 2011.     

"Results for the fourth quarter reflect yet another quarter of strong mortgage production and asset quality improvement," remarked Patterson.  "Mortgage production for the quarter was $549.4 million, contributing to total mortgage lending revenue of $17.2 million.  This level of production resulted in a record annual production volume of almost $2 billion for 2012.  As to asset quality, we are particularly pleased with disposition efforts related to OREO.  Total sales for the quarter exceeded $27 million, which represents the largest quarter of sales during the credit cycle.  We made decisions during the quarter to expedite the disposition of many of the OREO properties and to more aggressively price others going forward.  Some of these decisions adversely impacted current quarter earnings, but we believe they are prudent ones that will help improve profitability in future periods."

Earnings for the quarter reflect a provision for credit losses of $6.0 million, which is a decrease from $19.3 million for the fourth quarter of 2011 and is flat compared to $6.0 million for the third quarter of 2012.  Non-performing loans ("NPLs") declined $13.8 million, or 5.6 percent, during the fourth quarter of 2012 to $233.6 million compared with $247.3 million at September 30, 2012 and declined $88.7 million, or 27.5 percent, from $322.3 million at December 31, 2011.  In addition, total NPAs declined $38.7 million, or 10.3 percent, to $336.8 million compared with $375.5 million at September 30, 2012 and declined $159.3 million, or 32.1 percent, from $496.1 million at December 31, 2011.  Net charge-offs declined to $10.6 million for the fourth quarter of 2012 compared with $12.8 million for the third quarter of 2012.  Net charge-offs during the fourth quarter of 2012 included $6.4 million of charge-offs of loans which had been identified and reported as impaired and were reserved for in previous quarters. 

Earnings for the quarter were also impacted by additional compression in the net interest margin.  The fully taxable equivalent net interest margin was 3.44 percent for the fourth quarter of 2012 compared with 3.55 percent for the third quarter of 2012 and 3.69 percent for the fourth quarter of 2011.  Patterson added, "As others in the industry have experienced, we continue to see pressure on the net interest margin as a result of re-pricing on the asset side of the balance sheet.  Our securities portfolio continues to roll over at lower rates and loan yields are under pressure both prior to and at maturity.  The importance of fee income generation and efficiency are becoming increasingly magnified as we work to navigate through this rate environment."    

Net Interest Revenue

Net interest revenue was $100.9 million for the fourth quarter of 2012, a decrease of 6.2 percent from $107.5 million for the fourth quarter of 2011 and a decrease of 2.4 percent from $103.4 million for the third quarter of 2012.  The fully taxable equivalent net interest margin declined to 3.44 percent for the fourth quarter of 2012 from 3.69 percent for the fourth quarter of 2011 and 3.55 percent for the third quarter of 2012.  Declines in the net interest margin were due primarily to continued pressure on asset yields, particularly yields on loans and leases, which declined to 4.76 percent for the fourth quarter of 2012 compared with 5.02 percent for the fourth quarter of 2011 and 4.85 percent for the third quarter of 2012. 

Asset, Deposit and Loan Activity

Total assets were $13.4 billion at December 31, 2012 compared with $13.0 billion at December 31, 2011.  Total deposits were $11.1 billion at December 31, 2012, an increase of 1.2 percent from $11.0 billion at December 31, 2011.  Loans and leases, net of unearned income, were $8.6 billion at December 31, 2012, a decrease of 2.6 percent from $8.9 billion at December 31, 2011.  The construction, acquisition, and development ("CAD") loan portfolio, which decreased $172.6 million, or 19.0 percent, from December 31, 2011 to December 31, 2012, accounted for 74.0 percent of the decline in net loans and leases over the same time period.

The decrease in time deposits of $389.2 million, or 13.0 percent, at December 31, 2012 compared to December 31, 2011, was offset partially by significant growth in noninterest bearing demand deposits, which increased $275.4 million, or 12.1 percent, over the same period.  Additionally, savings deposits increased $154.1 million, or 15.5 percent, while interest bearing demand deposits increased $92.7 million, or 2.0 percent, over the same period.  As of December 31, 2012, $801.9 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.73 percent.   

Provision for Credit Losses and Allowance for Credit Losses

For the fourth quarter of 2012, the provision for credit losses was $6.0 million, compared with $19.3 million for the fourth quarter of 2011 and $6.0 million for the third quarter of 2012.  Net charge-offs for the fourth quarter of 2012 were $10.6 million, compared with $23.8 million for the fourth quarter of 2011 and $12.8 million for the third quarter of 2012.  Recoveries of previously charged-off loans were $9.2 million for the fourth quarter of 2012, compared with $2.6 million for the fourth quarter of 2011 and $6.1 million for the third quarter of 2012.  Annualized net charge-offs were 0.49 percent of average loans and leases for the fourth quarter of 2012, compared with 1.06 percent for the fourth quarter of 2011 and 0.59 percent for the third quarter of 2012.  Total annual net charge-offs were $58.7 million for 2012 compared with $131.9 million for 2011.  Recoveries of previously charged-off loans totaled $30.7 million for 2012 compared with $10.2 million for 2011. 

NPLs were $233.6 million, or 2.70 percent of net loans and leases, at December 31, 2012, compared with $322.3 million, or 3.63 percent of net loans and leases, at December 31, 2011, and $247.3 million, or 2.85 percent of net loans and leases, at September 30, 2012.  The allowance for credit losses was $164.5 million, or 1.90 percent of net loans and leases, at December 31, 2012 compared with $195.1 million, or 2.20 percent of net loans and leases, at December 31, 2011 and $169.0 million, or 1.95 percent of net loans and leases, at September 30, 2012. 

NPLs at December 31, 2012 consisted primarily of $207.2 million of nonaccrual loans, compared with $219.7 million of nonaccrual loans at September 30, 2012.  Included in the reduction of nonaccrual loans during the fourth quarter of 2012 were payments received on nonaccrual loans of $31.6 million, compared with payments received on such loans of $26.7 million during the third quarter of 2012.  NPLs at December 31, 2012 also included $1.2 million of loans 90 days or more past due and still accruing, compared with $1.4 million at September 30, 2012, and included restructured loans still accruing of $25.1 million at December 31, 2012, compared with $26.1 million at September 30, 2012.  Early stage past due loans, representing loans 30-89 days past due, declined to $28.2 million at December 31, 2012 from $43.8 million at September 30, 2012.  

At December 31, 2012, $35.7 million of NPLs were residential CAD loans, $36.3 million were other CAD loans, $62.2 million were commercial real estate loans and $40.7 million were consumer mortgages.  NPLs from all other loan types totaled $58.7 million at December 31, 2012.  Included in nonaccrual loans at December 31, 2012 were $115.4 million of loans, or 55.7 percent of total nonaccrual loans, that were paying as agreed, compared with $125.0 million, or 56.9 percent, at the end of the third quarter of 2012.  These loans were generally placed on nonaccrual status because the collateral values were less than the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or would be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values.  Such loans are generally deemed to be impaired, with a specific reserve established for the difference in the balance owed and the disposition value of the collateral.

At the end of the fourth quarter, 75.6 percent of nonaccrual loans were determined to be collateral dependent, and after write-downs and specific reserves, the remaining book balance of these loans was 70.9 percent of the unpaid principal balance.  At December 31, 2012, coverage of unimpaired nonaccrual loans by the nonspecified allowance for credit losses was 305 percent and coverage of unimpaired NPLs by the nonspecified allowance for credit losses was 200 percent. 

OREO decreased $25.0 million to $103.2 million during the fourth quarter of 2012 from $128.2 million at September 30, 2012.  This net decrease reflected $8.5 million added through foreclosure, offset by sales of OREO of $27.9 million.  Write-downs in the value of existing properties were $5.5 million for the fourth quarter of 2012 compared to $6.3 million for the third quarter of 2012.  Sales of OREO during the fourth quarter of 2012 resulted in a net loss of $4.2 million compared to a net loss of $0.8 million for the third quarter of 2012.  At December 31, 2012, OREO was carried at 44.0 percent of the aggregate loan balances at the time of foreclosure, compared with 49.2 percent at September 30, 2012.

Noninterest Revenue

Noninterest revenue was $70.9 million for the fourth quarter of 2012, compared with $65.3 million for the fourth quarter of 2011 and $70.4 million for the third quarter of 2012.  These results included a positive mortgage servicing rights ("MSR") valuation adjustment of $0.2 million for the fourth quarter of 2012 compared with negative adjustments of $1.0 million for the fourth quarter of 2011 and $3.2 million for the third quarter of 2012. 

Excluding the MSR valuation adjustments, net mortgage lending revenue was $17.0 million for the fourth quarter of 2012, compared with $9.9 million for the fourth quarter of 2011 and $16.8 million for the third quarter of 2012.  Mortgage origination volume for the fourth quarter of 2012 was $549.4 million, compared with $389.6 million for the fourth quarter of 2011 and $607.9 million for the third quarter of 2012.

Credit and debit card fee revenue was $8.1 million for the fourth quarter of 2012, compared with $7.8 million for the fourth quarter of 2011 and $8.3 million for the third quarter of 2012.  Service charge revenue was $13.9 million for the fourth quarter of 2012, compared with $17.4 million for the fourth quarter of 2011 and $14.2 million for the third quarter of 2012.  Insurance commission revenue was $20.5 million for the fourth quarter of 2012, compared with $19.4 million for the fourth quarter of 2011 and $23.5 million for the third quarter of 2012.  The decrease in insurance commission revenue was seasonal, as fourth quarter policy renewals are typically lower than other quarters. 

Noninterest Expense

Noninterest expense for the fourth quarter of 2012 was $143.2 million, compared with $135.9 million for the fourth quarter of 2011 and $133.8 million for the third quarter of 2012.  Salaries and employee benefits expense increased to $77.2 million for the fourth quarter of 2012 from $70.5 million for the fourth quarter of 2011 and $74.8 million for the third quarter of 2012.    Foreclosed property expense increased to $12.0 million for the fourth quarter of 2012 from $10.8 million for the fourth quarter of 2011 and $8.8 million for the third quarter of 2012.  Deposit insurance assessments were $3.1 million for the fourth quarter of 2012 compared to $5.7 million for the fourth quarter of 2011 and $4.0 million for the third quarter of 2012.

Capital Management

BancorpSouth remains a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 13.82 percent at December 31, 2012 and total risk based capital of 15.08 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for "well capitalized" classification.  The Company's equity capitalization consists of 100 percent common stock.  BancorpSouth's ratio of shareholders' equity to assets was 10.82 percent at December 31, 2012, compared with 9.72 percent at December 31, 2011 and 10.93 percent at September 30, 2012.  The ratio of tangible shareholders' equity to tangible assets was 8.83 percent at December 31, 2012, compared with 7.67 percent at December 31, 2011 and 8.91 percent at September 30, 2012.

Summary

Patterson concluded, "Our fourth quarter results finalize a very successful and productive year in many aspects.  During 2012, we were able to reduce NPLs by over 25 percent, OREO by over 40 percent, and total NPAs by over 30 percent.  We experienced a record year in both mortgage production and mortgage lending income.  In addition, we achieved growth in other fee lines of business, including a 3.7 percent increase in insurance commissions.  As we enter 2013, we believe that this progress will be instrumental in helping us continue to enhance company performance despite industry headwinds." 

Rollins added, "Over the course of my first few weeks as CEO, I have had an opportunity to meet many of my teammates across several different markets.  I have experienced firsthand professionals who share my desire to help our company succeed.  BancorpSouth has a history of over 135 years as a well-respected organization with a strong commitment to the values of client service and community support.  Our team clearly understands that the industry landscape has changed.  Regulatory measures have placed pressure on NSF and card fee income and the credit cycle has resulted in declining loan balances, both of which have contributed to declines in profitability.   Our team understands that growth is the real key to battling industry headwinds and to improving profitability."

Conference Call

BancorpSouth will conduct a conference call to discuss its fourth quarter 2012 results on January 24, 2013, at 10:00 a.m. (Central Time).  Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com.  A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.

Forward-Looking Statements

Certain statements contained in this news release may not be based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "may," "might," "will," "would," "could" or "intend."  These forward-looking statements include, without limitation, statements relating to the disposition and the aggressive pricing of certain OREO properties, credit quality and operating performance, profitability, and our use of non-GAAP financial measures.

We caution you not to place undue reliance on the forward-looking statements contained in this news release in that actual results could differ materially from those indicated in such forward-looking statements because of a variety of factors.  These factors may include, but are not limited to, conditions in the financial markets and economic conditions generally, the ongoing debt crisis and the downgrade of the sovereign credit ratings for various nations, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company's other real estate owned, limitations on the Company's ability to declare and pay dividends, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of legal or administrative proceedings, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd Frank Act, supervision of the Company's operations, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company's growth strategy, interruptions or breaches in the Company's information system security, the failure of certain third party vendors to perform, dilution caused by the Company's issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, the effectiveness of the Company's internal controls, other factors generally understood to affect the financial results of financial services companies and other factors detailed from time to time in the Company's press releases and filings with the Securities and Exchange Commission. 

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.4 billion in assets.  BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 293 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.

BancorpSouth, Inc.

Selected Financial Data

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2012

2011

2012

2011

(Dollars in thousands, except per share amounts)

Earnings Summary:

Net interest revenue

$       100,861

$        107,489

$        414,591

$        434,913

Provision for credit losses

6,000

19,250

28,000

130,081

Noninterest revenue

70,901

65,335

280,149

270,845

Noninterest expense

143,219

135,856

549,193

533,633

Income before income taxes

22,543

17,718

117,547

42,044

Income tax provision

5,563

4,415

33,252

4,475

Net income

$         16,980

$          13,303

$          84,295

$          37,569

Earnings per share:  Basic

$             0.18

$              0.16

$              0.90

$              0.45

                                    Diluted

$             0.18

$              0.16

$              0.90

$              0.45

Balance sheet data at December 31:

Total assets

$   13,397,198

$   12,995,851

Total earning assets

12,179,958

11,770,950

Loans and leases, net of unearned income

8,636,989

8,870,311

Allowance for credit losses

164,466

195,118

Total deposits

11,088,146

10,955,189

Common shareholders' equity

1,449,052

1,262,912

Book value per share

15.34

15.13

Tangible book value per share

12.25

11.68

Average balance sheet data:

Total assets

$  13,143,193

$   13,046,779

$   13,067,276

$   13,280,047

Total earning assets

12,045,432

11,918,358

11,960,971

12,143,391

Loans and leases, net of unearned interest

8,635,139

8,954,229

8,719,399

9,159,431

Total deposits

10,938,246

11,017,231

10,936,694

11,251,406

Common shareholders' equity

1,454,417

1,268,905

1,413,667

1,240,768

Non-performing assets at December 31:

Non-accrual loans and leases

$        207,241

$        276,798

Loans and leases 90+ days past due, still accruing

1,210

3,434

Restructured loans and leases, still accruing

25,099

42,018

Other real estate owned

103,248

173,805

Total non-performing assets

336,798

496,055

Net charge-offs as a percentage 

     of average loans (annualized)

0.49%

1.06%

0.67%

1.44%

Performance ratios (annualized):

Return on average assets

0.51%

0.40%

0.65%

0.28%

Return on common equity

4.64%

4.16%

5.96%

3.03%

Total shareholders' equity to total assets

10.82%

9.72%

10.82%

9.72%

Tangible shareholders' equity to tangible assets

8.83%

7.67%

8.83%

7.67%

Net interest margin

3.44%

3.69%

3.57%

3.69%

Average shares outstanding - basic

94,440,184

83,488,102

93,760,604

83,486,296

Average shares outstanding - diluted

94,560,226

83,503,611

93,850,104

83,509,759

Cash dividends per share

$0.01

$0.01

$0.04

$0.14

Tier 1 capital

13.82%

(1)

11.77%

13.82%

(1)

11.77%

Total capital

15.08%

(1)

13.03%

15.08%

(1)

13.03%

Tier 1 leverage capital

10.25%

(1)

8.85%

10.25%

(1)

8.85%

(1)  Estimated as of earnings release date

  

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

Dec-12

Sep-12

Jun-12

Mar-12

Dec-11

(Dollars in thousands)

Assets

Cash and due from banks

$                223,814

$                176,529

$                224,084

$                184,441

$                195,681

Interest bearing deposits with other banks

979,800

757,207

603,458

665,675

303,663

Available-for-sale securities, at fair value

2,434,032

2,483,606

2,462,831

2,573,535

2,513,518

Loans and leases

8,672,752

8,716,715

8,771,642

8,777,538

8,911,258

  Less:  Unearned income

35,763

36,746

39,247

39,615

40,947

             Allowance for credit losses

164,466

169,019

175,847

181,777

195,118

Net loans and leases

8,472,523

8,510,950

8,556,548

8,556,146

8,675,193

Loans held for sale

129,138

129,408

108,134

110,294

83,458

Premises and equipment, net

319,456

321,068

320,419

321,720

323,383

Accrued interest receivable

44,356

48,314

47,358

50,008

51,266

Goodwill

275,173

275,173

271,297

271,297

271,297

Bank owned life insurance

231,120

203,798

202,620

202,698

200,085

Other real estate owned

103,248

128,211

143,615

167,808

173,805

Other assets

184,538

201,473

207,454

203,950

204,502

Total Assets

$           13,397,198

$           13,235,737

$           13,147,818

$           13,307,572

$           12,995,851

Liabilities

Deposits:

  Demand:  Noninterest bearing

$             2,545,169

$             2,492,508

$             2,312,044

$             2,260,012

$             2,269,799

                  Interest bearing

4,799,496

4,697,260

4,782,243

4,897,585

4,706,825

  Savings

1,145,785

1,103,490

1,083,255

1,067,256

991,702

  Other time

2,597,696

2,681,382

2,778,795

2,857,469

2,986,863

Total deposits

11,088,146

10,974,640

10,956,337

11,082,322

10,955,189

Federal funds purchased and

    securities sold under agreement

    to repurchase

414,611

377,676

361,990

401,089

373,933

Short-term Federal Home Loan Bank borrowings

   and other short-term borrowing

-

-

1,500

1,500

1,500

Accrued interest payable

6,140

6,759

7,161

7,652

8,644

Junior subordinated debt securities

160,312

160,312

160,312

160,312

160,312

Long-term Federal Home Loan Bank borrowings

33,500

33,500

33,500

33,500

33,500

Other liabilities

245,437

236,147

208,707

228,998

199,861

Total Liabilities

11,948,146

11,789,034

11,729,507

11,915,373

11,732,939

Shareholders' Equity

Common stock

236,094

236,102

236,091

236,090

208,709

Capital surplus

312,190

311,271

310,388

309,426

227,567

Accumulated other comprehensive income (loss)

(8,646)

5,952

1,334

(4,136)

(2,261)

Retained earnings

909,414

893,378

870,498

850,819

828,897

Total Shareholders' Equity

1,449,052

1,446,703

1,418,311

1,392,199

1,262,912

Total Liabilities & Shareholders' Equity

$           13,397,198

$           13,235,737

$           13,147,818

$           13,307,572

$           12,995,851

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

Dec-12

Sep-12

Jun-12

Mar-12

Dec-11

(Dollars in thousands)

Assets

Cash and due from banks

$                164,801

$                152,228

$                152,907

$                160,827

$                151,004

Interest bearing deposits with other banks

849,710

605,270

574,624

603,714

384,231

Available-for-sale securities, at fair value

2,454,031

2,481,201

2,520,932

2,507,941

2,509,943

Federal funds sold and securities

     purchased under agreement to resell

-

2,717

-

274

2,174

Loans and leases

8,671,559

8,755,094

8,774,767

8,832,104

8,995,035

  Less:  Unearned income

36,420

38,448

39,542

40,562

40,806

             Allowance for credit losses

170,081

179,283

185,209

202,158

208,005

Net loans and leases

8,465,058

8,537,363

8,550,016

8,589,384

8,746,224

Loans held for sale

106,552

118,944

77,642

61,250

67,781

Premises and equipment, net

320,439

320,234

320,731

322,641

322,544

Accrued interest receivable

43,144

44,789

45,494

47,512

49,256

Goodwill

275,173

273,867

271,297

271,297

271,297

Bank owned life insurance

208,504

203,151

202,616

200,724

198,892

Other real estate owned

119,852

134,384

155,471

170,924

164,841

Other assets

135,929

144,868

146,501

151,870

178,592

Total Assets

$           13,143,193

$           13,019,016

$           13,018,231

$           13,088,358

$           13,046,779

Liabilities

Deposits:

  Demand:  Noninterest bearing

$             2,482,168

$             2,328,948

$             2,248,914

$             2,139,371

$             2,248,904

                  Interest bearing

4,703,500

4,704,896

4,769,340

4,960,060

4,714,059

  Savings

1,117,297

1,092,802

1,074,912

1,027,611

975,892

  Other time

2,635,281

2,729,878

2,815,753

2,916,910

3,078,376

Total deposits

10,938,246

10,856,524

10,908,919

11,043,952

11,017,231

Federal funds purchased and

    securities sold under agreement

    to repurchase

401,968

388,817

374,982

358,124

430,968

Short-term Federal Home Loan Bank borrowings

   and other short-term borrowing

-

1,223

1,500

1,500

1,500

Accrued interest payable

7,613

8,404

8,605

9,392

10,617

Junior subordinated debt securities

160,312

160,312

160,312

160,312

160,312

Long-term Federal Home Loan Bank borrowings

33,500

33,500

33,500

33,500

33,500

Other liabilities

147,137

138,079

126,680

117,869

123,746

Total Liabilities

11,688,776

11,586,859

11,614,498

11,724,649

11,777,874

Shareholders' Equity

Common stock

236,103

236,095

236,091

231,276

208,722

Capital surplus

311,634

310,642

309,634

294,973

227,201

Accumulated other comprehensive (loss) income

1,260

2,900

(4,020)

(2,269)

8,927

Retained earnings

905,420

882,520

862,028

839,729

824,055

Total Shareholders' Equity

1,454,417

1,432,157

1,403,733

1,363,709

1,268,905

Total Liabilities & Shareholders' Equity

$           13,143,193

$           13,019,016

$           13,018,231

$           13,088,358

$           13,046,779

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended

Year To Date

Dec-12

Sep-12

Jun-12

Mar-12

Dec-11

Dec-12

Dec-11

INTEREST REVENUE:

Loans and leases

$  102,925

$  105,937

$    107,737

$  109,012

$  112,566

$ 425,611

$ 461,076

Deposits with other banks

529

399

382

401

252

1,711

701

Federal funds sold and securities purchased

   under agreement to resell

-

2

1

-

1

3

167

Held-to-maturity securities:

    Taxable

-

-

-

-

-

-

13,080

    Tax-exempt

-

-

-

-

-

-

5,638

Available-for-sale securities:

    Taxable

8,729

9,329

10,188

11,162

11,781

39,408

43,989

    Tax-exempt

4,083

4,109

4,210

4,256

4,158

16,658

10,983

Loans held for sale

829

974

686

544

635

3,033

2,219

        Total interest revenue

117,095

120,750

123,204

125,375

129,393

486,424

537,853

INTEREST EXPENSE:

Interest bearing demand

3,588

3,889

4,185

4,449

4,737

16,111

22,646

Savings

606

686

691

714

747

2,697

3,211

Other time

8,749

9,482

10,275

11,291

13,104

39,797

61,709

Federal funds purchased and securities sold

   under agreement to repurchase

72

73

66

63

76

274

458

FHLB borrowings

349

364

366

367

367

1,446

3,459

Junior subordinated debt

2,869

2,875

2,879

2,879

2,871

11,502

11,451

Other

1

2

1

2

2

6

6

        Total interest expense

16,234

17,371

18,463

19,765

21,904

71,833

102,940

        Net interest revenue

100,861

103,379

104,741

105,610

107,489

414,591

434,913

  Provision for credit losses

6,000

6,000

6,000

10,000

19,250

28,000

130,081

        Net interest revenue, after provision for

          credit losses

94,861

97,379

98,741

95,610

88,239

386,591

304,832

NONINTEREST REVENUE:

Mortgage lending

17,188

13,549

11,040

15,142

8,928

56,919

17,069

Credit card, debit card and merchant fees

8,125

8,270

7,787

7,523

7,783

31,705

42,373

Service charges

13,875

14,189

13,697

15,116

17,412

56,877

66,670

Trust income

3,391

3,101

3,139

2,282

3,348

11,913

12,186

Security gains, net

152

39

177

74

18

442

12,127

Insurance commissions

20,502

23,519

22,964

23,153

19,416

90,138

86,918

Other

7,668

7,753

7,664

9,070

8,430

32,155

33,502

        Total noninterest revenue

70,901

70,420

66,468

72,360

65,335

280,149

270,845

NONINTEREST EXPENSE:

Salaries and employee benefits

77,203

74,829

77,661

74,931

70,512

304,624

282,880

Occupancy, net of rental income

10,643

10,944

10,487

10,066

10,315

42,140

42,362

Equipment

5,309

5,083

5,124

5,333

5,108

20,849

21,707

Deposit insurance assessments

3,103

3,998

3,994

5,383

5,674

16,478

21,316

Prepayment penalty on FHLB borrowings

-

-

-

-

-

-

9,778

Other

46,961

38,934

39,240

39,967

44,247

165,102

155,590

        Total noninterest expenses

143,219

133,788

136,506

135,680

135,856

549,193

533,633

        Income before income taxes

22,543

34,011

28,703

32,290

17,718

117,547

42,044

Income tax expense

5,563

10,186

8,079

9,424

4,415

33,252

4,475

        Net income

$    16,980

$   23,825

$     20,624

$    22,866

$   13,303

$  84,295

$  37,569

Net income per share: Basic

$        0.18

$       0.25

$         0.22

$        0.25

$       0.16

$      0.90

$      0.45

                                  Diluted

$        0.18

$       0.25

$         0.22

$        0.25

$       0.16

$      0.90

$      0.45

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-12

Sep-12

Jun-12

Mar-12

Dec-11

LOAN AND LEASE PORTFOLIO:

Commercial and industrial

$ 1,476,611

$ 1,462,719

$ 1,497,678

$ 1,441,727

$ 1,473,728

Real estate

   Consumer mortgages

1,873,875

1,888,783

1,904,420

1,937,997

1,945,190

   Home equity

486,074

492,833

496,245

501,331

514,362

   Agricultural

256,196

257,733

251,975

256,683

239,487

   Commercial and industrial-owner occupied

1,333,103

1,309,631

1,288,887

1,287,542

1,301,575

   Construction, acquisition and development

735,808

823,692

835,022

858,110

908,362

   Commercial real estate

1,748,881

1,738,516

1,748,748

1,742,001

1,754,022

Credit cards

104,884

101,405

101,085

100,527

106,281

All other

621,557

604,657

608,335

612,005

627,304

     Total loans

$ 8,636,989

$ 8,679,969

$ 8,732,395

$ 8,737,923

$ 8,870,311

ALLOWANCE FOR CREDIT LOSSES:

Balance, beginning of period

$    169,019

$    175,847

$    181,777

$    195,118

$    199,686

Loans and leases charged off:

Commercial and industrial

(2,174)

(4,334)

(1,582)

(4,272)

(1,677)

Real estate

   Consumer mortgages

(3,789)

(2,299)

(2,818)

(4,216)

(2,953)

   Home equity

(1,064)

(270)

(536)

(851)

(1,667)

   Agricultural

(456)

(302)

(386)

(96)

(110)

   Commercial and industrial-owner occupied

(1,421)

(994)

(2,732)

(3,868)

(1,136)

   Construction, acquisition and development

(5,286)

(6,845)

(9,560)

(11,394)

(10,539)

   Commercial real estate

(4,026)

(2,633)

(3,260)

(2,809)

(6,858)

Credit cards

(531)

(540)

(588)

(562)

(706)

All other

(977)

(731)

(438)

(758)

(794)

     Total loans charged off

(19,724)

(18,948)

(21,900)

(28,826)

(26,440)

Recoveries:

Commercial and industrial

3,507

1,007

1,040

1,542

446

Real estate

   Consumer mortgages

819

256

438

323

263

   Home equity

66

37

78

315

43

   Agricultural

10

53

53

10

76

   Commercial and industrial-owner occupied

561

270

1,514

351

100

   Construction, acquisition and development

1,621

2,676

1,955

2,155

971

   Commercial real estate

2,208

1,443

4,504

383

340

Credit cards

144

144

121

118

168

All other

235

234

267

288

215

     Total recoveries

9,171

6,120

9,970

5,485

2,622

Net charge-offs

(10,553)

(12,828)

(11,930)

(23,341)

(23,818)

Provision charged to operating expense

6,000

6,000

6,000

10,000

19,250

Balance, end of period

$    164,466

$    169,019

$    175,847

$    181,777

$    195,118

Average loans for period

$ 8,635,139

$ 8,716,646

$ 8,735,225

$ 8,791,542

$ 8,954,229

Ratio:

Net charge-offs to average loans (annualized)

0.49%

0.59%

0.55%

1.06%

1.06%

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-12

Sep-12

Jun-12

Mar-12

Dec-11

NON-PERFORMING ASSETS

NON-PERFORMING LOANS AND LEASES:

  Nonaccrual Loans and Leases

    Commercial and industrial

$      9,311

$         8,674

$       13,156

$    11,025

$       12,260

    Real estate

       Consumer mortgages

36,133

35,599

35,660

46,562

47,878

       Home equity

3,497

3,471

2,995

2,687

2,036

       Agricultural

7,587

7,190

8,390

4,254

4,179

       Commercial and industrial-owner occupied

20,910

27,059

26,957

32,842

33,112

       Construction, acquisition and development

66,635

92,351

104,283

115,649

133,110

       Commercial real estate

57,656

40,514

44,359

35,715

40,616

    Credit cards

415

465

364

509

594

    All other

5,097

4,415

4,082

3,984

3,013

         Total nonaccrual loans and leases

$  207,241

$     219,738

$     240,246

$  253,227

$     276,798

  Loans and Leases 90+ Days Past Due, Still Accruing:

    Commercial and industrial

$         414

$              45

$                -

$          10

$              12

    Real estate

       Consumer mortgages

512

1,027

1,141

1,314

2,974

       Home equity

-

-

-

-

-

       Agricultural

10

-

-

-

-

       Commercial and industrial-owner occupied

19

119

-

-

-

       Construction, acquisition and development

-

-

-

-

-

       Commercial real estate

-

-

-

-

-

    Credit cards

228

236

324

228

299

    All other

27

15

167

146

149

         Total loans and leases 90+ days past due, still accruing

1,210

1,442

1,632

1,698

3,434

  Restructured Loans and Leases, Still Accruing

25,099

26,147

25,071

30,311

42,018

     Total non-performing loans and leases

233,550

247,327

266,949

285,236

322,250

OTHER REAL ESTATE OWNED:

103,248

128,211

143,615

167,808

173,805

Total Non-performing Assets

$  336,798

$     375,538

$     410,564

$  453,044

$     496,055

Additions to Nonaccrual Loans and Leases During the Quarter

$    44,674

$       28,918

$       41,121

$    40,392

$       39,474

  Loans and Leases 30-89 Days Past Due, Still Accruing:

    Commercial and industrial

$      3,080

$         6,065

$         3,040

$      4,809

$         8,065

    Real estate

       Consumer mortgages

13,403

14,745

14,436

10,736

15,864

       Home equity

1,272

1,766

1,311

2,248

2,037

       Agricultural

306

977

471

663

339

       Commercial and industrial-owner occupied

3,498

4,859

2,745

3,332

2,154

       Construction, acquisition and development

2,303

8,528

2,062

2,431

2,714

       Commercial real estate

1,176

3,210

1,288

2,104

3,292

    Credit cards

777

734

673

686

802

    All other

2,422

2,861

2,544

1,983

2,280

         Total Loans and Leases 30-89 days past due, still accruing

$    28,237

$       43,745

$       28,570

$    28,992

$       37,547

Credit Quality Ratios:

Provision for credit losses to average loans and leases (annualized)

0.28%

0.28%

0.27%

0.45%

0.86%

Allowance for credit losses to net loans and leases

1.90%

1.95%

2.01%

2.08%

2.20%

Allowance for credit losses to non-performing assets

48.83%

45.01%

42.83%

40.12%

39.33%

Allowance for credit losses to non-performing loans and leases

70.42%

68.34%

65.87%

63.73%

60.55%

Non-performing loans and leases to net loans and leases

2.70%

2.85%

3.06%

3.26%

3.63%

Non-performing assets to net loans and leases

3.90%

4.33%

4.70%

5.18%

5.59%

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-12

Sep-12

Jun-12

Mar-12

Dec-11

REAL ESTATE CONSTRUCTION, ACQUISITION 

   AND DEVELOPMENT ("CAD") PORTFOLIO:

  Outstanding Balance

     Multi-family construction

$       6,542

$         4,546

$         2,378

$       4,683

$         2,138

     One-to-four family construction

177,392

189,561

182,648

159,281

169,827

     Recreation and all other loans

44,840

62,888

66,033

63,407

67,235

     Commercial construction

114,099

126,296

112,929

122,173

130,124

     Commercial acquisition and development

161,546

177,887

182,570

191,783

197,044

     Residential acquisition and development

231,389

262,514

288,464

316,783

341,994

         Total outstanding balance

$   735,808

$      823,692

$      835,022

$   858,110

$      908,362

  Nonaccrual CAD Loans

     Multi-family construction

$               -

$                 -

$                  -

$               -

$          1,067

     One-to-four family construction

10,609

14,171

15,490

11,953

14,690

     Recreation and all other loans

1,160

1,166

380

386

436

     Commercial construction

5,889

6,991

4,318

3,702

5,235

     Commercial acquisition and development

17,337

21,408

21,741

23,464

23,968

     Residential acquisition and development

31,640

48,615

62,354

76,144

87,714

         Total nonaccrual CAD loans

66,635

92,351

104,283