BancorpSouth Announces Fourth Quarter 2015 Financial Results

25 Jan, 2016, 16:30 ET from BancorpSouth, Inc.

TUPELO, Miss., Jan. 25, 2016 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and year ended December 31, 2015.

Highlights for the fourth quarter of 2015 included:

  • Net income of $21.2 million or $0.22 per diluted share.
  • Net operating income of $31.4 million or $0.33 per diluted share.
  • Generated net loan growth of $153.2 million, or 5.9 percent on an annualized basis and deposit growth of $189.2 million, or 6.7 percent on an annualized basis.
  • Net interest margin remained stable at 3.58 percent.  
  • Continued stable credit quality resulted in no recorded provision for credit losses for the quarter.
  • Other real estate owned ("OREO") declined $8.9 million, or 37.7 percent, as a result of the disposition of several large parcels of property.  Related foreclosed property expense was elevated at $3.0 million.
  • Incurred a charge in the fourth quarter of 2015 of $16.5 million related to the settlement of the 2010 class action lawsuit for $24 million related to overdraft fees.

The Company reported net income of $21.2 million, or $0.22 per diluted share, for the fourth quarter of 2015 compared with net income of $28.7 million, or $0.30 per diluted share, for the fourth quarter of 2014 and net income of $34.3 million, or $0.36 per diluted share, for the third quarter of 2015.  Additionally, the Company reported net income of $127.5 million, or $1.33 per diluted share, for the year ended December 31, 2015 compared to $116.8 million, or $1.21 per diluted share, for the year ended December 31, 2014.  

The Company reported net operating income of $31.4 million, or $0.33 per diluted share, for the fourth quarter of 2015 compared to $28.7 million, or $0.30 per diluted share, for the fourth quarter of 2014 and $34.3 million, or $0.36 per diluted share, for the third quarter of 2015. 

"Our fourth quarter results were impacted by elevated non-interest expense, particularly related to the legal settlement," remarked Dan Rollins, BancorpSouth Chairman and Chief Executive Officer.  "While this settlement has an adverse impact on current quarter earnings, we believe it was in the best interest of our shareholders to put this case behind us and move forward.  We also had the opportunity to dispose of several large parcels of foreclosed property, including our largest individual property, resulting in an $8.9 million decline in total OREO.  Despite elevated legal and foreclosed property expense, we continue to be pleased with our core fundamental performance.  We reported nice loan and deposit growth for the quarter.  Additionally, both our net interest margin and our credit quality indicators remained stable.  Finally, we continue to challenge expenses as many of our other core expense line items were either flat or down for the quarter.

"Additionally, we have begun settlement discussions with the Consumer Financial Protection Bureau and the U.S. Department of Justice regarding their joint investigation of our fair lending practices.  While it is too early to speculate on the potential timing or outcome of these discussions, we are pleased that these agencies have opened this dialogue with us and we are working toward a resolution.  However, if we are able to reach a settlement of this investigation, there is no guarantee that the terms would permit our pending mergers to move forward."  The Company is currently unable to estimate any potential liability that may result from this matter.  Prior to the filing of the Annual Report on Form 10-K for 2015, should a settlement be reached that results in a liability, the financial information in this release could be revised.   

Net Interest Revenue

Net interest revenue was $111.2 million for the fourth quarter of 2015, an increase of 4.5 percent from $106.4 million for the fourth quarter of 2014 and an increase of 0.1 percent from $111.1 million for the third quarter of 2015.  The fully taxable equivalent net interest margin was 3.58 percent for the fourth quarter of 2015 compared to 3.60 percent for the fourth quarter of 2014 and 3.59 percent for the third quarter of 2015.  Yields on loans and leases were 4.15 percent for the fourth quarter of 2015 compared with 4.30 percent for the fourth quarter of 2014 and 4.22 percent for the third quarter of 2015, while yields on total interest earning assets were 3.79 percent for the fourth quarter of 2015 compared with 3.85 percent for the fourth quarter of 2014 and 3.82 percent for the third quarter of 2015.  The average cost of deposits was 0.21 percent for the fourth quarter of 2015 compared to 0.25 percent for the fourth quarter of 2014 and 0.22 percent for the third quarter of 2015.

Asset, Deposit and Loan Activity

Total assets were $13.8 billion at December 31, 2015 compared with $13.3 billion at December 31, 2014.  Loans and leases, net of unearned income, were $10.4 billion at December 31, 2015 compared with $9.7 billion at December 31, 2014. 

Total deposits were $11.3 billion at December 31, 2015 compared with $11.0 billion at December 31, 2014.  A decrease in time deposits of $140.1 million, or 7.0 percent, at December 31, 2015 compared to December 31, 2014 was more than offset by growth in other lower cost deposits.  Noninterest bearing demand deposits increased $252.8 million, or 9.1 percent, over the same period.  Additionally, savings deposits increased $110.4 million, or 8.3 percent, while interest bearing demand deposits increased $135.8 million, or 2.8 percent, over the same period. 

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the quarter reflect no recorded provision for credit losses, compared to no recorded provision for the fourth quarter of 2014 and a negative provision of $3.0 million for the third quarter of 2015.  Total non-performing assets ("NPAs") were $109.7 million, or 1.06 percent of net loans and leases, at December 31, 2015 compared with $105.7 million, or 1.09 percent of net loans and leases, at December 31, 2014, and $113.9 million, or 1.11 percent of net loans and leases, at September 30, 2015. 

Net charge-offs for the fourth quarter of 2015 were $6.6 million, compared with net charge-offs of $1.5 million for the fourth quarter of 2014 and net charge-offs of $2.3 million for the third quarter of 2015.  Gross charge-offs were $9.5 million for the fourth quarter of 2015, compared with $4.9 million for the fourth quarter of 2014 and $7.4 million for the third quarter of 2015.  Gross recoveries of previously charged-off loans were $3.0 million for the fourth quarter of 2015, compared with $3.3 million for the fourth quarter of 2014 and $5.1 million for the third quarter of 2015.  Annualized net charge-offs were 0.25 percent of average loans and leases for the fourth quarter of 2015, compared with annualized net charge-offs of 0.06 percent for the fourth quarter of 2014 and annualized net charge-offs of 0.09 percent for the third quarter of 2015. 

Non-performing loans ("NPLs") were $95.0 million, or 0.92 percent of net loans and leases, at December 31, 2015, compared with $71.7 million, or 0.74 percent of net loans and leases, at December 31, 2014, and $90.3 million, or 0.88 percent of net loans and leases, at September 30, 2015.  The allowance for credit losses was $126.5 million, or 1.22 percent of net loans and leases, at December 31, 2015 compared with $142.4 million, or 1.47 percent of net loans and leases, at December 31, 2014 and $133.0 million, or 1.30 percent of net loans and leases, at September 30, 2015. 

NPLs at December 31, 2015 consisted primarily of $83.0 million of nonaccrual loans, compared with $70.2 million of nonaccrual loans at September 30, 2015.  NPLs at December 31, 2015 also included $2.0 million of loans 90 days or more past due and still accruing, compared with $1.4 million of such loans at September 30, 2015, and included restructured loans still accruing of $9.9 million at December 31, 2015, compared with $18.6 million of such loans at September 30, 2015.  Early stage past due loans, representing loans 30-89 days past due, totaled $24.6 million at December 31, 2015 compared to $25.6 million at September 30, 2015.  

OREO decreased $8.9 million to $14.8 million during the fourth quarter of 2015 from $23.7 million at September 30, 2015.  This net decrease reflected $1.6 million of OREO added through foreclosure, offset by sales of OREO of $8.2 million.  Write-downs in the value of existing properties were $2.3 million for the fourth quarter of 2015 compared to $0.5 million for the third quarter of 2015.  Sales of OREO during the fourth quarter of 2015 resulted in a net loss of $0.5 million compared to a net gain of $0.2 million for the third quarter of 2015.  At December 31, 2015, OREO was carried at 39.3 percent of the aggregate loan balances at the time of foreclosure, compared with 42.8 percent at September 30, 2015.

Noninterest Revenue

Noninterest revenue was $67.4 million for the fourth quarter of 2015, compared with $63.5 million for the fourth quarter of 2014 and $63.0 million for the third quarter of 2015.  These results included a positive MSR valuation adjustment of $2.9 million for the fourth quarter of 2015 compared with a negative MSR valuation adjustment of $3.4 million for the fourth quarter of 2014 and a negative MSR valuation adjustment of $5.3 million for the third quarter of 2015.  Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.   

Excluding the MSR valuation adjustments, net mortgage lending revenue was $7.7 million for the fourth quarter of 2015, compared with $6.7 million for the fourth quarter of 2014 and $7.6 million for the third quarter of 2015.  Mortgage origination volume for the fourth quarter of 2015 was $310.0 million, compared with $256.3 million for the fourth quarter of 2014 and $402.2 million for the third quarter of 2015.

Credit and debit card fee revenue was $9.4 million for the fourth quarter of 2015, compared with $9.9 million for the fourth quarter of 2014 and $9.3 million for the third quarter of 2015.  Deposit service charge revenue was $11.8 million for the fourth quarter of 2015, compared with $12.5 million for the fourth quarter of 2014 and $12.2 million for the third quarter of 2015.  Insurance commission revenue was $25.3 million for the fourth quarter of 2015, compared with $25.4 million for the fourth quarter of 2014 and $28.6 million for the third quarter of 2015.  Wealth management revenue was $5.4 million for the fourth quarter of 2015, compared with $5.9 million for the fourth quarter of 2014 and $5.6 million for the third quarter of 2015.    

Noninterest Expense

Noninterest expense for the fourth quarter of 2015 was $148.4 million, compared with $130.0 million for the fourth quarter of 2014 and $126.5 million for the third quarter of 2015.  Non-interest expense for the fourth quarter of 2015 included the $16.5 million legal charge related to the settlement of the class action lawsuit related to overdraft fees.  The settlement plus estimated administrative fees totaled $24.5 million, $8.0 million of which was accrued in prior years.  Salaries and employee benefits expense was $80.2 million for the fourth quarter of 2015 compared to $76.8 million for the fourth quarter of 2014 and $81.4 million for the third quarter of 2015.  Foreclosed property expense was $3.0 million for the fourth quarter of 2015 compared with $4.6 million for the fourth quarter of 2014 and $0.8 million for the third quarter of 2015.  Deposit insurance assessments were $2.6 million for the fourth quarter of 2015 compared to $2.4 million for the fourth quarter of 2014 and $2.2 million for the third quarter of 2015. 

Capital Management

The Company's equity capitalization is comprised entirely of common stock.  BancorpSouth's ratio of shareholders' equity to assets was 12.00 percent at December 31, 2015, compared with 12.05 percent at December 31, 2014 and 11.93 percent at September 30, 2015.  The ratio of tangible shareholders' equity to tangible assets was 9.96 percent at December 31, 2015, compared with 9.92 percent at December 31, 2014 and 9.88 percent at September 30, 2015.

Estimated regulatory capital ratios at December 31, 2015 were calculated in accordance with the Basel III capital framework.  BancorpSouth is a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 12.31 percent at December 31, 2015 and total risk based capital of 13.40 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, for "well capitalized" classification. 

Transactions

On January 8, 2014, the Company announced the signing of a definitive merger agreement with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as "OIB"), headquartered in Monroe, Louisiana, pursuant to which Ouachita Bancshares Corp. will be merged with and into the Company.  OIB operates 11 full-service banking offices along the I-20 corridor and has a loan production office in Madison, Mississippi.  As of December 31, 2015, OIB, on a consolidated basis, reported total assets of $652.9 million, total loans of $463.8 million and total deposits of $562.0 million.  Under the terms of the definitive agreement, the Company will issue approximately 3,675,000 shares of the Company's common stock plus $22.875 million in cash for all outstanding shares of Ouachita Bancshares Corp.'s capital stock, subject to certain conditions and potential adjustments.  The merger has been unanimously approved by the Board of Directors of each company and was approved by OIB shareholders on April 8, 2014.  On February 25, 2015, the Company re-filed the merger application for the merger with Ouachita Bancshares Corp. with the appropriate regulatory agencies.  On June 30, 2015, the Company announced the merger agreement was extended through December 31, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions.  Although the merger agreement has not been extended beyond December 31, 2015, the amended agreement remains in effect until terminated by the Board of Directors of the Company or OIB.  The terms of the amended agreement provide for a minimum total deal value of $111.1 million but also allow Ouachita Bancshares Corp. to terminate the agreement if the average closing price of the Company's common stock declines below a certain threshold prior to closing.  The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

On January 21, 2014, the Company announced the signing of a definitive merger agreement with Central Community Corporation, headquartered in Temple, Texas, pursuant to which Central Community Corporation will be merged with and into the Company.  Central Community Corporation is the parent company of First State Bank Central Texas ("First State Bank"), which is headquartered in Austin, Texas.  First State Bank operates 31 full-service banking offices in central Texas.  As of December 31, 2015, Central Community Corporation, on a consolidated basis, reported total assets of $1.4 billion, total loans of $615.0 million and total deposits of $1.2 billion.  Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company's common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation's capital stock, subject to certain conditions and potential adjustments.  The merger has been unanimously approved by the Board of Directors of each company and was approved by Central Community Corporation shareholders on April 24, 2014.  On February 25, 2015, the Company re-filed the merger application for the merger with Central Community Corporation with the appropriate regulatory agencies.  On June 30, 2015, the Company announced the merger agreement was extended through December 31, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions.  Although the merger agreement has not been extended beyond December 31, 2015, the amended agreement remains in effect until terminated by the Board of Directors of the Company or Central Community Corporation.  The terms of the amended agreement provide for a minimum total deal value of $202.5 million but also allow Central Community Corporation to terminate the agreement if the average closing price of the Company's common stock declines below a certain threshold prior to closing.  The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

For additional information regarding the status of the merger with Ouachita Bancshares Corp. and the status of the merger with Central Community Corporation, please refer to the Current Report on Form 8-K that was previously filed with the Securities and Exchange Commission (the "SEC") on July 24, 2014, Part II, Item 5 of the Quarterly Report on Form 10-Q that was previously filed with the SEC on August 6, 2014, the Current Report on Form 8-K that was previously filed with the SEC on September 4, 2014, the Annual Report on Form 10-K that was previously filed with the SEC on February 24, 2015, and the Current Report on Form 8-K that was previously filed with the SEC on July 1, 2015.

Summary

Rollins concluded, "I am proud of our team's continued progress as we all work together to improve our financial and operating performance.  During 2015, our constant focus on expense control allowed us to keep total non-interest expense essentially flat for the year, excluding the impact of the class action settlement.  We grew net loans and leases by 6.8 percent and total deposits by 3.3 percent while maintaining a stable net interest margin.  Credit quality improved as well, as evidenced by our improvement in classified asset levels, low levels of net charge-offs, and negative provision for credit losses for the year.  As we look forward to 2016, I'm confident our team of professionals will find a way to deliver on our goal of growing shareholder value." 

Conference Call

BancorpSouth will conduct a conference call to discuss its fourth quarter 2015 results on January 26, 2016, 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.

About BancorpSouth, Inc.

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.8 billion in assets.  BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 241 full service branch locations as well additional mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.

Forward-Looking Statements

Certain statements contained in this news release may not be based upon 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," "could," "estimate," "expect," "foresee," "hope," "intend," "may," "might," "plan," "will," or "would" or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the terms, timing and closings of the proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program, the terms, timing and outcome of the settlement discussions in connection with the joint investigation by the Consumer Financial Protection Bureau (the "CFPB") and the United States Department of Justice ("DOJ") of the Company's fair lending practices, the acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company's products and services if the proposed mergers close, the outcome of any instituted, pending or threatened material litigation, amortization expense for intangible assets, goodwill impairments, loan impairment, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue, fair value determinations, the amount of the Company's non-performing loans and leases, additions to OREO, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, continued weakness in the economic environment, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company's reserve for losses from representation and warranty obligations, the Company's foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, calculation of economic value of equity, impaired loan charge-offs, troubled debt restructurings, diversification of the Company's revenue stream, liquidity needs and strategies, sources of funding, net interest margin, declaration and payment of dividends, cost saving initiatives, improvement in the Company's efficiencies, operating expense trends, future acquisitions and consideration to be used therefor, and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters. 

The Company cautions readers 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 as a result of a variety of factors. These factors may include, but are not limited to, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program, when and whether the joint investigation by the CFPB and the DOJ of the Company's fair lending practices is resolved by settlement and, if so, on what terms, the ability of the Company, Ouachita Bancshares Corp. and Central Community Corporation to obtain regulatory approval of and close the proposed mergers, the potential impact upon the Company of the delay in the closings of these proposed mergers, the impact of any ongoing, pending or threatened litigation, administrative and investigatory matters involving the Company, conditions in the financial markets and economic conditions generally, 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 OREO, limitations on the Company's ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Act, and supervision of the Company's operations, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic and environmental 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 the loss of any key Company personnel, 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, the Company's ability to adapt its products and services to evolving industry standards and consumer preferences, 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, unfavorable ratings by rating agencies, 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, other factors generally understood to affect the assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies and other factors detailed from time to time in the Company's press and news releases, reports and other filings with the SEC.  Forward-looking statements speak only as of the date that they were made, and, except as required by law, the Company does not undertake any obligation to update or revise forward-looking statements to reflect events or circumstances that occur after the date of this news release.

 

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

12/31/2015

9/30/2015

6/30/2015

3/31/2015

12/31/2014

Earnings Summary:

Interest revenue

$            118,050

$             118,201

$            114,630

$            113,497

$            114,237

Interest expense

6,820

7,131

7,321

7,424

7,792

Net interest revenue

111,230

111,070

107,309

106,073

106,445

Provision for credit losses

-

(3,000)

(5,000)

(5,000)

-

Net interest revenue, after provision

   for credit losses

111,230

114,070

112,309

111,073

106,445

Noninterest revenue

67,386

62,953

74,314

73,315

63,513

Noninterest expense

148,351

126,450

128,177

136,933

130,046

Income before income taxes

30,265

50,573

58,446

47,455

39,912

Income tax expense

9,096

16,230

18,733

15,189

11,252

Net income

$              21,169

$               34,343

$              39,713

$              32,266

$              28,660

Balance Sheet - Period End Balances

Total assets

$       13,798,662

$        13,787,424

$       13,634,931

$       13,630,322

$       13,326,369

Total earning assets

12,656,791

12,663,944

12,492,532

12,468,322

12,163,897

Total securities

2,082,329

2,161,125

2,251,153

2,194,373

2,156,927

Loans and leases, net of unearned income

10,372,778

10,219,576

10,007,571

9,726,970

9,712,936

Allowance for credit losses

126,458

133,009

138,312

136,660

142,443

Total deposits

11,331,161

11,141,946

11,134,961

11,252,654

10,972,339

Long-term debt

69,775

71,868

73,962

76,055

78,148

Total shareholders' equity

1,655,444

1,644,820

1,680,196

1,645,208

1,606,059

Balance Sheet - Average Balances

Total assets

$       13,724,595

$        13,632,581

$       13,516,546

$       13,457,668

$       13,131,130

Total earning assets

12,628,685

12,548,967

12,443,960

12,398,058

12,038,265

Total securities

2,110,195

2,207,935

2,211,931

2,190,989

2,180,000

Loans and leases, net of unearned income

10,321,299

10,110,995

9,868,318

9,670,987

9,579,059

Total deposits

11,182,750

11,140,542

11,148,246

11,126,210

10,802,194

Long-term debt

69,775

71,868

73,962

76,078

79,387

Total shareholders' equity

1,650,924

1,680,123

1,659,991

1,624,496

1,613,239

Nonperforming Assets:

Non-accrual loans and leases

$              83,028

$               70,237

$              67,766

$              54,418

$              58,052

Loans and leases 90+ days past due, still accruing

2,013

1,436

1,568

1,615

2,763

Restructured loans and leases, still accruing

9,876

18,578

10,109

5,433

10,920

Non-performing loans (NPLs)

94,917

90,251

79,443

61,466

71,735

Other real estate owned

14,759

23,696

24,299

27,889

33,984

Non-performing assets (NPAs)

$            109,676

$             113,947

$            103,742

$              89,355

$            105,719

Financial Ratios and Other Data:

Return on average assets

0.61%

1.00%

1.18%

0.97%

0.87%

Return on average shareholders' equity

5.09%

8.11%

9.60%

8.06%

7.05%

Return on tangible equity

6.25%

10.23%

11.66%

9.84%

8.81%

Pre-tax pre-provision return on average assets

0.87%

1.38%

1.59%

1.29%

1.21%

Noninterest income to average assets

1.95%

1.83%

2.21%

2.21%

1.92%

Noninterest expense to average assets

4.29%

3.68%

3.80%

4.13%

3.93%

Net interest margin-fully taxable equivalent

3.58%

3.59%

3.54%

3.56%

3.60%

Net interest rate spread

3.48%

3.49%

3.44%

3.46%

3.49%

Efficiency ratio (tax equivalent)

81.86%

71.56%

69.52%

75.17%

75.25%

Loan/deposit ratio

91.54%

91.72%

89.88%

86.44%

88.52%

Price to earnings mult (avg)

18.17

16.98

18.80

18.43

18.45

Market value to book value

136.46%

135.80%

148.34%

136.26%

134.91%

Market value to book value (avg)

142.53%

140.68%

142.10%

127.91%

130.16%

Market value to tangible book value

168.15%

167.71%

182.42%

168.52%

167.95%

Market value to tangible book value (avg)

175.64%

173.74%

174.75%

158.20%

162.04%

Headcount FTE

3,970

3,903

3,935

3,924

3,948

Credit Quality Ratios:

Net (recoveries) charge-offs to average loans and leases (annualized)

0.25%

0.09%

(0.27%)

0.03%

0.06%

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

0.00%

(0.12%)

(0.20%)

(0.21%)

0.00%

Allowance for credit losses to net loans and leases

1.22%

1.30%

1.38%

1.40%

1.47%

Allowance for credit losses to non-performing loans and leases

133.23%

147.38%

174.10%

222.33%

198.57%

Allowance for credit losses to non-performing assets

115.30%

116.73%

133.32%

152.94%

134.74%

Non-performing loans and leases to net loans and leases

0.92%

0.88%

0.79%

0.63%

0.74%

Non-performing assets to net loans and leases

1.06%

1.11%

1.04%

0.92%

1.09%

Equity Ratios:

Total shareholders' equity to total assets

12.00%

11.93%

12.32%

12.07%

12.05%

Tangible shareholders' equity to tangible assets

9.96%

9.88%

10.26%

9.99%

9.92%

Capital Adequacy:

Common  Equity Tier 1 capital

12.11%

12.08%

12.60%

12.60%

N/A

Tier 1 capital

12.31%

12.29%

12.81%

12.81%

13.26%

Total capital

13.40%

13.45%

14.04%

14.07%

14.52%

Tier 1 leverage capital

10.61%

10.56%

10.96%

10.71%

10.55%

   Estimated for current quarter

Common Share Data:

Basic earnings per share

$                  0.22

$                   0.36

$                  0.41

$                  0.33

$                  0.30

Diluted earnings per share

0.22

0.36

0.41

0.33

0.30

Cash dividends per share

0.10

0.10

0.08

0.08

0.08

Book value per share

17.58

17.50

17.37

17.04

16.69

Tangible book value per share

14.27

14.17

14.12

13.78

13.40

Market value per share (last)

23.99

23.77

25.76

23.22

22.51

Market value per share (high)

27.23

26.54

26.68

23.68

23.28

Market value per share (low)

22.44

22.09

22.83

19.64

19.22

Market value per share (avg)

25.06

24.62

24.68

21.80

21.72

Dividend payout ratio

44.46%

28.01%

18.25%

22.40%

25.17%

Total shares outstanding

94,162,728

93,969,994

96,755,530

96,544,502

96,254,903

Average shares outstanding - basic

94,111,408

96,202,871

96,625,794

96,359,885

96,173,000

Average shares outstanding - diluted

94,384,443

96,467,728

96,957,441

96,653,401

96,506,827

Yield/Rate:

(Taxable equivalent basis)

Loans, loans held for sale, and leases net of unearned income

4.15%

4.22%

4.23%

4.31%

4.30%

Available-for-sale securities:

  Taxable

1.48%

1.40%

1.40%

1.54%

1.43%

  Tax-exempt

5.32%

5.32%

5.44%

5.40%

5.30%

Short-term investments

0.22%

0.20%

0.24%

0.22%

0.24%

  Total interest earning assets and revenue

3.79%

3.82%

3.78%

3.80%

3.85%

Deposits

0.21%

0.22%

0.23%

0.24%

0.25%

  Demand - interest bearing

0.18%

0.18%

0.19%

0.18%

0.18%

  Savings

0.12%

0.12%

0.12%

0.12%

0.12%

  Other time

0.71%

0.76%

0.79%

0.82%

0.87%

Short-term borrowings

0.12%

0.12%

0.11%

0.12%

0.11%

Total int bearing dep & s/t borrowings

0.28%

0.30%

0.31%

0.31%

0.33%

Junior subordinated debt

2.93%

2.87%

2.86%

2.84%

2.82%

Long-term debt

2.95%

2.91%

2.90%

2.88%

2.86%

  Total interest bearing liabilities and expense

0.31%

0.32%

0.34%

0.34%

0.36%

Interest bearing liabilities to interest earning assets

69.23%

69.68%

70.36%

71.13%

70.57%

Net interest tax equivalent adjustment

$                2,601

$                 2,558

$                2,628

$                2,653

$                2,736

 

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

Dec-15

Sep-15

Jun-15

Mar-15

Dec-14

(Dollars in thousands)

Assets

Cash and due from banks

$                154,192

$                159,923

$                183,541

$                199,337

$                204,231

Interest bearing deposits with other banks

43,777

113,068

34,438

360,469

153,019

Available-for-sale securities, at fair value

2,082,329

2,161,125

2,251,153

2,194,373

2,156,927

Loans and leases

10,404,326

10,254,013

10,041,455

9,761,555

9,749,540

  Less:  Unearned income

31,548

34,437

33,884

34,585

36,604

             Allowance for credit losses

126,458

133,009

138,312

136,660

142,443

Net loans and leases

10,246,320

10,086,567

9,869,259

9,590,310

9,570,493

Loans held for sale

157,907

170,175

199,370

186,510

141,015

Premises and equipment, net

308,125

304,317

303,837

305,335

304,943

Accrued interest receivable

40,901

41,599

41,065

42,933

41,985

Goodwill

291,498

291,498

291,498

291,498

291,498

Other identifiable intangibles

20,545

21,466

22,415

23,476

24,508

Bank owned life insurance

251,534

249,825

247,983

246,148

247,076

Other real estate owned

14,759

23,696

24,299

27,889

33,984

Other assets

186,775

164,165

166,073

162,044

156,690

Total Assets

$           13,798,662

$           13,787,424

$           13,634,931

$           13,630,322

$           13,326,369

Liabilities

Deposits:

  Demand:  Noninterest bearing

$             3,031,528

$             3,053,439

$             2,911,972

$             2,914,949

$             2,778,686

                  Interest bearing

5,003,806

4,794,656

4,881,469

4,979,710

4,868,054

  Savings

1,442,336

1,409,856

1,407,616

1,395,857

1,331,963

  Other time

1,853,491

1,883,995

1,933,904

1,962,138

1,993,636

Total deposits

11,331,161

11,141,946

11,134,961

11,252,654

10,972,339

Federal funds purchased and

    securities sold under agreement

    to repurchase

405,937

425,203

375,980

384,829

388,166

Short-term Federal Home Loan Bank borrowings

   and other short-term borrowing

62,000

224,500

92,500

1,500

3,500

Accrued interest payable

3,071

3,353

3,494

3,371

3,400

Junior subordinated debt securities

23,198

23,198

23,198

23,198

23,198

Long-term debt

69,775

71,868

73,962

76,055

78,148

Other liabilities

248,076

252,536

250,640

243,507

251,559

Total Liabilities

12,143,218

12,142,604

11,954,735

11,985,114

11,720,310

Shareholders' Equity

Common stock

235,407

234,925

241,889

241,361

240,637

Capital surplus

282,934

278,998

337,272

331,016

324,271

Accumulated other comprehensive loss

(41,825)

(36,355)

(41,288)

(37,033)

(43,686)

Retained earnings

1,178,928

1,167,252

1,142,323

1,109,864

1,084,837

Total Shareholders' Equity

1,655,444

1,644,820

1,680,196

1,645,208

1,606,059

Total Liabilities & Shareholders' Equity

$           13,798,662

$           13,787,424

$           13,634,931

$           13,630,322

$           13,326,369

 

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

Dec-15

Sep-15

Jun-15

Mar-15

Dec-14

(Dollars in thousands)

Assets

Cash and due from banks

$                159,696

$                159,569

$                152,792

$                132,734

$                166,941

Interest bearing deposits with other banks

69,552

72,438

212,634

426,792

165,713

Available-for-sale securities, at fair value

2,110,195

2,207,935

2,211,931

2,190,989

2,180,000

Loans and leases

10,353,913

10,144,874

9,903,034

9,706,941

9,615,125

  Less:  Unearned income

32,614

33,879

34,716

35,954

36,066

             Allowance for credit losses

132,375

137,547

140,483

141,299

143,842

Net loans and leases

10,188,924

9,973,448

9,727,835

9,529,688

9,435,217

Loans held for sale

127,638

157,598

151,077

109,291

113,493

Premises and equipment, net

306,881

304,948

305,335

305,277

306,630

Accrued interest receivable

38,142

38,847

38,268

39,279

39,034

Goodwill

291,498

291,498

291,498

291,498

291,498

Other identifiable intangibles

20,880

21,812

22,780

23,834

24,910

Bank owned life insurance

250,577

248,798

246,872

246,538

245,584

Other real estate owned

21,049

24,008

27,190

32,062

39,209

Other assets

139,563

131,682

128,334

129,686

122,901

Total Assets

$           13,724,595

$           13,632,581

$           13,516,546

$           13,457,668

$           13,131,130

Liabilities

Deposits:

  Demand:  Noninterest bearing

$             3,106,947

$             2,992,903

$             2,895,451

$             2,807,816

$             2,837,919

                  Interest bearing

4,782,234

4,822,567

4,899,467

4,985,577

4,617,998

  Savings

1,421,361

1,413,187

1,404,336

1,358,565

1,321,000

  Other time

1,872,208

1,911,885

1,948,992

1,974,252

2,025,277

Total deposits

11,182,750

11,140,542

11,148,246

11,126,210

10,802,194

Federal funds purchased and

    securities sold under agreement

    to repurchase

466,865

439,503

399,447

398,237

426,842

Short-term Federal Home Loan Bank borrowings

   and other short-term borrowing

107,408

62,136

6,555

3,056

2,261

Accrued interest payable

3,340

3,600

3,457

3,338

3,630

Junior subordinated debt securities

23,198

23,198

23,198

23,198

23,198

Long-term debt

69,775

71,868

73,962

76,078

79,387

Other liabilities

220,335

211,611

201,690

203,055

180,379

Total Liabilities

12,073,671

11,952,458

11,856,555

11,833,172

11,517,891

Shareholders' Equity

Common stock

235,227

240,473

241,540

240,992

240,436

Capital surplus

282,076

325,118

332,993

326,476

323,372

Accumulated other comprehensive loss

(38,618)

(40,476)

(38,534)

(39,529)

(22,747)

Retained earnings

1,172,239

1,155,008

1,123,992

1,096,557

1,072,178

Total Shareholders' Equity

1,650,924

1,680,123

1,659,991

1,624,496

1,613,239

Total Liabilities & Shareholders' Equity

$           13,724,595

$           13,632,581

$           13,516,546

$           13,457,668

$           13,131,130

 

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended

YTD

Dec-15

Sep-15

Jun-15

Mar-15

Dec-14

Dec-15

Dec-14

INTEREST REVENUE:

Loans and leases

$  107,164

$  107,086

$   103,428

$  102,135

$  103,172

$ 419,813

$ 404,559

Deposits with other banks

40

36

126

236

101

438

532

Available-for-sale securities:

    Taxable

6,550

6,490

6,424

6,844

6,429

26,308

27,755

    Tax-exempt

3,137

3,226

3,335

3,377

3,471

13,075

14,462

Loans held for sale

1,159

1,363

1,317

905

1,064

4,744

2,949

        Total interest revenue

118,050

118,201

114,630

113,497

114,237

464,378

450,257

INTEREST EXPENSE:

Interest bearing demand

2,166

2,209

2,262

2,183

2,070

8,820

7,851

Savings

434

431

426

412

411

1,703

1,614

Other time

3,356

3,646

3,827

4,008

4,453

14,837

20,675

Federal funds purchased and securities sold

   under agreement to repurchase

112

104

85

82

89

383

331

Long-term debt

581

571

556

577

603

2,285

2,463

Junior subordinated debt

171

168

165

163

165

667

659

Other

-

2

-

(1)

1

1

2

        Total interest expense

6,820

7,131

7,321

7,424

7,792

28,696

33,595

        Net interest revenue

111,230

111,070

107,309

106,073

106,445

435,682

416,662

  Provision for credit losses

-

(3,000)

(5,000)

(5,000)

-

(13,000)

-

        Net interest revenue, after provision for

          credit losses

111,230

114,070

112,309

111,073

106,445

448,682

416,662

NONINTEREST REVENUE:

Mortgage lending

10,522

2,339

14,102

8,567

3,250

35,530

22,671

Credit card, debit card and merchant fees

9,414

9,282

9,298

8,539

9,921

36,533

35,303

Deposit service charges

11,836

12,150

11,527

11,252

12,538

46,765

50,622

Security gains, net

48

33

41

14

18

136

37

Insurance commissions

25,348

28,584

29,319

33,493

25,376

116,744

114,842

Wealth Management

5,375

5,567

5,508

6,210

5,925

22,660

23,940

Other

4,843

4,998

4,519

5,240

6,485

19,600

21,731

        Total noninterest revenue

67,386

62,953

74,314

73,315

63,513

277,968

269,146

NONINTEREST EXPENSE:

Salaries and employee benefits

80,177

81,354

79,759

81,179

76,751

322,469

307,828

Occupancy, net of rental income

10,434

10,819

10,419

10,194

10,500

41,866

41,345

Equipment

3,569

3,742

4,024

3,974

3,996

15,309

16,869

Deposit insurance assessments

2,630

2,191

2,377

2,311

2,430

9,509

8,190

Other

51,541

28,344

31,598

39,275

36,369

150,758

144,174

        Total noninterest expenses

148,351

126,450

128,177

136,933

130,046

539,911

518,406

        Income before income taxes

30,265

50,573

58,446

47,455

39,912

186,739

167,402

Income tax expense

9,096

16,230

18,733

15,189

11,252

59,248

50,652

        Net income

$    21,169

$   34,343

$     39,713

$    32,266

$   28,660

$ 127,491

$ 116,750

Net income per share: Basic

$       0.22

$       0.36

$        0.41

$       0.33

$       0.30

$      1.33

$      1.22

                                  Diluted

$       0.22

$       0.36

$        0.41

$       0.33

$       0.30

$      1.33

$      1.21

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-15

Sep-15

Jun-15

Mar-15

Dec-14

LOAN AND LEASE PORTFOLIO:

Commercial and industrial

$  1,747,774

$   1,710,497

$   1,730,142

$ 1,676,366

$ 1,746,486

Real estate

   Consumer mortgages

2,472,202

2,447,132

2,374,122

2,301,112

2,257,726

   Home equity

589,752

573,566

558,460

538,042

531,374

   Agricultural

259,360

252,381

239,884

236,898

239,616

   Commercial and industrial-owner occupied

1,617,429

1,605,811

1,596,244

1,518,153

1,522,536

   Construction, acquisition and development

945,045

900,875

860,407

892,730

853,623

   Commercial real estate

2,188,048

2,141,398

2,081,394

1,993,473

1,961,977

Credit cards

112,165

109,576

110,552

106,287

113,426

All other

441,003

478,340

456,366

463,909

486,172

     Total loans

$ 10,372,778

$ 10,219,576

$ 10,007,571

$ 9,726,970

$ 9,712,936

ALLOWANCE FOR CREDIT LOSSES:

Balance, beginning of period

$     133,009

$      138,312

$     136,660

$   142,443

$   143,950

Loans and leases charged-off:

Commercial and industrial

(6,193)

(2,010)

(1,436)

(383)

(1,179)

Real estate

   Consumer mortgages

(1,146)

(1,382)

(575)

(892)

(900)

   Home equity

(147)

(314)

(245)

(498)

(93)

   Agricultural

(16)

(9)

-

(8)

(4)

   Commercial and industrial-owner occupied

(357)

(645)

(404)

(394)

(220)

   Construction, acquisition and development

(221)

(203)

(272)

(343)

(566)

   Commercial real estate

(122)

(1,477)

(1,117)

(1,007)

(463)

Credit cards

(723)

(706)

(527)

(676)

(580)

All other

(623)

(628)

(441)

(579)

(847)

     Total loans charged-off

(9,548)

(7,374)

(5,017)

(4,780)

(4,852)

Recoveries:

Commercial and industrial

354

897

282

502

298

Real estate

   Consumer mortgages

596

461

1,024

612

821

   Home equity

123

90

185

241

102

   Agricultural

20

59

36

269

16

   Commercial and industrial-owner occupied

307

1,831

146

550

216

   Construction, acquisition and development

1,061

1,084

8,978

604

897

   Commercial real estate

149

187

600

720

623

Credit cards

152

170

183

153

160

All other

235

292

235

346

212

     Total recoveries

2,997

5,071

11,669

3,997

3,345

Net (charge-offs) recoveries

(6,551)

(2,303)

6,652

(783)

(1,507)

Provision charged to operating expense

-

(3,000)

(5,000)

(5,000)

-

Balance, end of period

$ 126,458

$ 133,009

$     138,312

$   136,660

$   142,443

Average loans for period

$ 10,321,299

$ 10,110,995

$   9,868,318

$ 9,670,987

$ 9,579,059

Ratio:

Net (charge-offs) recoveries to average loans (annualized)

0.25%

0.09%

(0.27%)

0.03%

0.06%

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-15

Sep-15

Jun-15

Mar-15

Dec-14

NON-PERFORMING ASSETS

NON-PERFORMING LOANS AND LEASES:

  Nonaccrual Loans and Leases

    Commercial and industrial

$      8,493

$       15,697

$         9,740

$      3,923

$         3,934

    Real estate

       Consumer mortgages

21,637

21,959

21,636

21,435

23,668

       Home equity

4,021

3,664

3,550

2,269

2,253

       Agricultural

921

484

259

259

291

       Commercial and industrial-owner occupied

16,512

12,690

14,007

9,687

11,190

       Construction, acquisition and development

9,130

4,240

5,411

5,111

4,162

       Commercial real estate

21,741

10,730

12,397

11,107

11,915

    Credit cards

188

215

157

118

133

    All other

385

558

609

509

506

         Total nonaccrual loans and leases

$    83,028

$       70,237

$       67,766

$    54,418

$       58,052

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

    Commercial and industrial

$          60

$             58

$             20

$          30

$             41

    Real estate

       Consumer mortgages

1,655

1,068

1,022

1,256

1,828

       Home equity

-

-

141

-

-

       Agricultural

-

-

-

-

-

       Commercial and industrial-owner occupied

-

-

14

-

39

       Construction, acquisition and development

-

-

-

-

387

       Commercial real estate

-

-

-

-

137

    Credit cards

298

310

342

329

327

    All other

-

-

29

-

4

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

2,013

1,436

1,568

1,615

2,763

  Restructured Loans and Leases, Still Accruing

9,876

18,578

10,109

5,433

10,920

     Total non-performing loans and leases

94,917

90,251

79,443

61,466

71,735

OTHER REAL ESTATE OWNED:

14,759

23,696

24,299

27,889

33,984

Total Non-performing Assets

$  109,676

$      113,947

$      103,742

$    89,355

$      105,719

Additions to Nonaccrual Loans and Leases During the Quarter

$    34,050

$       22,271

$       35,315

$    23,607

$       21,952

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

    Commercial and industrial

$      2,409

$         4,985

$         3,081

$      3,270

$         2,319

    Real estate

       Consumer mortgages

15,128

10,789

10,622

9,955

11,412

       Home equity

2,456

1,455

2,527

2,594

2,047

       Agricultural

303

393

116

161

366

       Commercial and industrial-owner occupied

1,018

3,888

2,643

3,026

912

       Construction, acquisition and development

1,070

1,218

1,120

5,471

4,811

       Commercial real estate

830

798

1,651

3,032

1,510

    Credit cards

677

788

529

581

739

    All other

744

1,334

1,481

1,014

1,698

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

$    24,635

$       25,648

$       23,770

$    29,104

$       25,814

Credit Quality Ratios:

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

0.00%

(0.12%)

(0.20%)

(0.21%)

0.00%

Allowance for credit losses to net loans and leases

1.22%

1.30%

1.38%

1.40%

1.47%

Allowance for credit losses to non-performing loans and leases

133.23%

147.38%

174.10%

222.33%

198.57%

Allowance for credit losses to non-performing assets

115.30%

116.73%

133.32%

152.94%

134.74%

Non-performing loans and leases to net loans and leases

0.92%

0.88%

0.79%

0.63%

0.74%

Non-performing assets to net loans and leases

1.06%

1.11%

1.04%

0.92%

1.09%

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

December 31, 2015

Special

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

Commercial and industrial

$  1,721,118

$                -

$       19,529

$            -

$                -

$    7,127

$   1,747,774

Real estate

   Consumer mortgages

2,399,081

-

68,768

363

-

3,990

2,472,202

   Home equity

577,539

-

10,418

-

-

1,795

589,752

   Agricultural

250,579

-

7,909

-

-

872

259,360

   Commercial and industrial-owner occupied

1,554,984

-

50,304

-

-

12,141

1,617,429

   Construction, acquisition and development

920,372

-

17,090

-

-

7,583

945,045

   Commercial real estate

2,124,448

-

45,658

161

-

17,781

2,188,048

Credit cards

112,165

-

-

-

-

-

112,165

All other

433,333

-

7,465

102

-

103

441,003

     Total loans

$ 10,093,619

$                -

$      227,141

$        626

$                -

$  51,392

$ 10,372,778

September 30, 2015

Special

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

Commercial and industrial

$  1,671,522

$                -

$       24,967

$            -

$                -

$  14,008

$   1,710,497

Real estate

   Consumer mortgages

2,369,160

-

73,753

107

-

4,112

2,447,132

   Home equity

563,119

-

8,645

-

-

1,802

573,566

   Agricultural

243,814

-

8,235

-

-

332

252,381

   Commercial and industrial-owner occupied

1,541,771

-

55,289

224

-

8,527

1,605,811

   Construction, acquisition and development

870,595

-

27,243

430

-

2,607

900,875

   Commercial real estate

2,072,229

-

59,514

410

-

9,245

2,141,398

Credit cards

109,576

-

-

-

-

-

109,576

All other

471,633

-

6,604

-

-

103

478,340

     Total loans

$  9,913,419

$                -

$      264,250

$      1,171

$                -

$  40,736

$ 10,219,576

 

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)

December 31, 2015

Alabama

and Florida

Panhandle

Arkansas

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:

Commercial and industrial

$   160,361

$   199,347

$   202,755

$   618,901

$     79,928

$   116,514

$   237,102

$   132,866

$  1,747,774

Real estate

   Consumer mortgages

296,698

330,780

219,334

818,423

71,915

273,980

443,852

17,220

2,472,202

   Home equity

83,979

42,448

63,859

221,588

23,163

142,825

10,264

1,626

589,752

   Agricultural

7,852

86,172

30,930

78,729

3,118

12,468

40,091

-

259,360

   Commercial and industrial-owner occupied

181,017

194,152

181,567

677,686

47,937

132,156

202,914

-

1,617,429

   Construction, acquisition and development

108,851

97,151

76,801

315,295

22,621

138,126

186,200

-

945,045

   Commercial real estate

332,985

360,884

241,093

593,677

206,352

184,338

268,719

-

2,188,048

Credit cards

-

-

-

-

-

-

-

112,165

112,165

All other

72,347

48,554

30,130

165,509

3,081

41,062

56,900

23,420

441,003

     Total loans

$ 1,244,090

$ 1,359,488

$ 1,046,469

$3,489,808

$   458,115

$ 1,041,469

$ 1,446,042

$   287,297

$ 10,372,778

NON-PERFORMING LOANS AND LEASES:

Commercial and industrial

$           99

$         884

$         493

$      6,228

$             -

$           17

$       1,444

$         143

$        9,308

Real estate

   Consumer mortgages

1,226

3,529

1,389

7,460

858

1,369

1,525

7,339

24,695

   Home equity

783

1,291

519

885

-

560

-

2

4,040

   Agricultural

-

-

-

932

-

26

-

-

958

   Commercial and industrial-owner occupied

1,659

2,706

2,737

11,860

406

195

1,295

-

20,858

   Construction, acquisition and development

53

636

199

6,783

1,570

1,418

65

-

10,724

   Commercial real estate

3,718

1,181

2,459

12,193

428

2,234

172

-

22,385

Credit cards

-

-

-

-

-

-

-

1,291

1,291

All other

102

120

55

211

-

169

-

1

658

     Total loans

$       7,640

$     10,347

$       7,851

$    46,552

$       3,262

$       5,988

$       4,501

$       8,776

$       94,917

NON-PERFORMING LOANS AND LEASES

   AS A PERCENTAGE OF OUTSTANDING:

Commercial and industrial

0.06%

0.44%

0.24%

1.01%

0.00%

0.01%

0.61%

0.11%

0.53%

Real estate

   Consumer mortgages

0.41%

1.07%

0.63%

0.91%

1.19%

0.50%

0.34%

42.62%

1.00%

   Home equity

0.93%

3.04%

0.81%

0.40%

0.00%

0.39%

0.00%

0.12%

0.69%

   Agricultural

0.00%

0.00%

0.00%

1.18%

0.00%

0.21%

0.00%

N/A

0.37%

   Commercial and industrial-owner occupied

0.92%

1.39%

1.51%

1.75%

0.85%

0.15%

0.64%

N/A

1.29%

   Construction, acquisition and development

0.05%

0.65%

0.26%

2.15%

6.94%

1.03%

0.03%

N/A

1.13%

   Commercial real estate

1.12%

0.33%

1.02%

2.05%

0.21%

1.21%

0.06%

N/A

1.02%

Credit cards

N/A

N/A

N/A

N/A

N/A

N/A

N/A

1.15%

1.15%

All other

0.14%

0.25%

0.18%

0.13%

0.00%

0.41%

0.00%

0.00%

0.15%

     Total loans

0.61%

0.76%

0.75%

1.33%

0.71%

0.57%

0.31%

3.05%

0.92%

 

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

December 31, 2015

Alabama

and Florida

Panhandle

Arkansas

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

OTHER REAL ESTATE OWNED:

Commercial and industrial

$          84

$                -

$                -

$            -

$                -

$             -

$           -

$           -

$          84

Real estate

   Consumer mortgages

167

191

-

1,786

173

156

4

-

2,477

   Home equity

-

-

-

101

-

-

-

-

101

   Agricultural

-

-

-

25

-

-

-

-

25

   Commercial and industrial-owner occupied

61

-

-

568

-

385

60

-

1,074

   Construction, acquisition and development

2,305

168

130

6,033

-

1,576

-

-

10,212

   Commercial real estate

170

108

-

210

127

-

63

-

678

All other

-

-

-

90

-

-

18

-

108

     Total loans

$      2,787

$            467

$            130

$      8,813

$            300

$      2,117

$       145

$           -

$    14,759

Quarter Ended

Dec-15

Sep-15

Jun-15

Mar-15

Dec-14

OTHER REAL ESTATE OWNED:

Balance, beginning of period

$    23,696

$       24,299

$       27,889

$    33,984

$       42,691

Additions to foreclosed properties

   New foreclosed property

1,555

1,333

1,730

2,804

2,257

Reductions in foreclosed properties

   Sales

(8,227)

(1,412)

(4,284)

(6,726)

(8,548)

   Writedowns

(2,265)

(524)

(1,036)

(2,173)

(2,416)

Balance, end of period

$    14,759

$       23,696

$       24,299

$    27,889

$       33,984

FORECLOSED PROPERTY EXPENSE

(Gain) Loss on sale of other real estate owned

$        483

$          (203)

$            204

$       (779)

$         1,643

Writedown of other real estate owned

2,265

524

1,036

2,173

2,416

Other foreclosed property expense

266

487

385

577

534

Total foreclosed property expense

$      3,014

$            808

$         1,625

$      1,971

$         4,593

 

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

Quarter Ended

YTD

Dec-15

Sep-15

Jun-15

Mar-15

Dec-14

Dec-15

Dec-14

NONINTEREST REVENUE:

Mortgage lending

$    10,522

$         2,339

$       14,102

$      8,567

$         3,250

$  35,530

$  22,671

Credit card, debit card and merchant fees

9,414

9,282

9,298

8,539

9,921

36,533

35,303

Deposit service charges

11,836

12,150

11,527

11,252

12,538

46,765

50,622

Securities gains, net

48

33

41

14

18

136

37

Insurance commissions

25,348

28,584

29,319

33,493

25,376

116,744

114,842

Trust income

3,469

3,653

3,543

4,036

3,791

14,701

14,520

Annuity fees

449

539

470

558

639

2,016

2,877

Brokerage commissions and fees

1,457

1,375

1,495

1,616

1,495

5,943

6,543

Bank-owned life insurance

1,881

1,842

1,835

1,899

3,249

7,457

8,848

Other miscellaneous income

2,962

3,156

2,684

3,341

3,236

12,143

12,883

     Total noninterest revenue

$    67,386

$       62,953

$       74,314

$    73,315

$       63,513

$ 277,968

$ 269,146

NONINTEREST EXPENSE:

Salaries and employee benefits

$    80,177

$       81,354

$       79,759

$    81,179

$       76,751

$ 322,469

$ 307,828

Occupancy, net of rental income

10,434

10,819

10,419

10,194

10,500

41,866

41,345

Equipment

3,569

3,742

4,024

3,974

3,996

15,309

16,869

Deposit insurance assessments

2,630

2,191

2,377

2,311

2,430

9,509

8,190

Amortization of bond issue cost

12

12

12

12

12

48

48

Advertising

1,009

812

1,686

781

1,233

4,288

4,388

Foreclosed property expense

3,014

808

1,625

1,971

4,593

7,418

17,071

Telecommunications

1,807

1,825

1,897

1,922

1,960

7,451

8,720

Public relations

474

481

653

570

770

2,178

3,399

Data processing

5,608

5,598

5,324

5,393

4,804

21,923

20,736

Computer software

2,609

2,595

2,690

2,606

2,763

10,500

10,525

Amortization of intangibles

922

948

1,061

1,032

1,111

3,963

4,443

Legal

19,434

1,233

1,998

7,681

2,322

30,346

9,822

Merger expense

13

8

4

-

4

25

1,761

Postage and shipping

1,139

1,030

1,194

1,172

1,239

4,535

4,745

Other miscellaneous expense

15,500

12,994

13,454

16,135

15,558

58,083

58,516

Total noninterest expense

$  148,351

$      126,450

$      128,177

$  136,933

$      130,046

$ 539,911

$ 518,406

INSURANCE COMMISSIONS:

Property and casualty commissions

$    18,814

$       21,155

$       21,145

$    20,673

$       19,007

$  81,787

$  83,316

Life and health commissions

5,823

5,775

6,202

5,412

5,521

23,212

21,208

Risk management income

672

709

637

666

621

2,684

2,651

Other

39

945

1,335

6,742

227

9,061

7,667

Total insurance commissions

$    25,348

$       28,584

$       29,319

$    33,493

$       25,376

$ 116,744

$ 114,842

 

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-15

Sep-15

Jun-15

Mar-15

Dec-14

MORTGAGE SERVICING RIGHTS:

Fair value, beginning of period

$     52,973

$       55,924

$       49,190

$     51,296

$       53,759

Additions to mortgage servicing rights:

   Originations of servicing assets

3,065

4,231

4,344

2,499

2,453

Changes in fair value:

   Due to payoffs/paydowns

(1,633)

(1,872)

(1,930)

(1,564)

(1,480)

   Due to change in valuation inputs or

     assumptions used in the valuation model

2,865

(5,308)

4,321

(3,039)

(3,434)

   Other changes in fair value

(2)

(2)

(1)

(2)

(2)

Fair value, end of period

$     57,268

$       52,973

$       55,924

$     49,190

$       51,296

Production revenue:

   Origination

$       4,909

$         5,154

$         7,395

$       8,914

$         3,949

   Servicing

4,381

4,365

4,316

4,256

4,215

   Payoffs/Paydowns

(1,633)

(1,872)

(1,930)

(1,564)

(1,480)

     Total production revenue

7,657

7,647

9,781

11,606

6,684

Market value adjustment

2,865

(5,308)

4,321

(3,039)

(3,434)

Total mortgage lending revenue

$     10,522

$         2,339

$       14,102

$       8,567

$         3,250

Mortgage loans serviced

$ 6,011,236

$   5,942,736

$   5,802,407

$ 5,705,638

$   5,686,756

MSR/mtg loans serviced

0.95%

0.89%

0.96%

0.86%

0.90%

AVAILABLE-FOR-SALE SECURITIES, at fair value

U.S. Government agencies

$ 1,244,640

$   1,255,717

$   1,336,846

$ 1,286,981

$   1,215,054

Government agency issued residential

   mortgage-back securities

140,540

206,878

217,191

200,381

209,230

Government agency issued commercial

   mortgage-back securities

260,693

229,922

224,450

227,409

240,568

Obligations of states and political subdivisions

417,499

451,600

458,322

471,539

483,864

Other

18,957

17,008

14,344

8,063

8,211

Total available-for-sale securities

$ 2,082,329

$   2,161,125

$   2,251,153

$ 2,194,373

$   2,156,927

 

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

Management evaluates the Company's capital position and operating performance by utilizing certain financial measures not calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including pre-tax, pre-provision earnings, net operating income, tangible shareholders' equity to tangible assets, return on tangible equity, pre-tax pre-provision return on average assets, tangible book value per share, and operating earnings per share.  The Company has included these non-GAAP financial measures in this news release for the applicable periods presented.  Management believes that the presentation of these non-GAAP financial measures (i) provides important supplemental information that contributes to a proper understanding of the Company's operating performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to Management, the financial services industry, bank stock analysts and bank regulators.  Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below.  These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure.  In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names.

Reconciliation of Pre-tax, Pre-provision Earnings and Net Operating Income to Net Income:

Quarter ended

12/31/2015

9/30/2015

6/30/2015

3/31/2015

12/31/2014

Net income

$          21,169

$          34,343

$          39,713

$          32,266

$         28,660

Plus:

Provision for credit losses

-

(3,000)

(5,000)

(5,000)

-

Income tax expense

9,096

16,230

18,733

15,189

11,252

Pre-tax, pre-provision earnings

$          30,265

$          47,573

$          53,446

$          42,455

$         39,912

Net income

$          21,169

$          34,343

$          39,713

$          32,266

$         28,660

Plus:

Merger expense, net of tax

8

5

3

(1)

2

Legal charge, net of tax

10,246

-

-

-

-

Net operating income

$          31,423

$          34,348

$          39,716

$          32,265

$         28,662

 

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

Reconciliation of Tangible Assets and Tangible Shareholders' Equity to 

Total Assets and Total Shareholders' Equity:

Quarter ended

12/31/2015

9/30/2015

6/30/2015

3/31/2015

12/31/2014

Tangible assets

Total assets

$    13,798,662

$    13,787,424

$    13,634,931

$    13,630,322

$   13,326,369

Less:  

Goodwill

291,498

291,498

291,498

291,498

291,498

Other identifiable intangible assets

20,545

21,466

22,415

23,476

24,508

Total tangible assets

$    13,486,619

$    13,474,460

$    13,321,018

$    13,315,348

$   13,010,363

Tangible shareholders' equity

Total shareholders' equity

$     1,655,444

$     1,644,820

$     1,680,196

$      1,645,208

$    1,606,059

Less:

Goodwill

291,498

291,498

291,498

291,498

291,498

Other identifiable intangible assets

20,545

21,466

22,415

23,476

24,508

Total tangible shareholders' equity

$     1,343,401

$     1,331,856

$     1,366,283

$      1,330,234

$    1,290,053

Total average assets

$    13,724,595

$    13,632,581

$    13,516,546

$    13,457,668

$   13,131,130

Total common shares outstanding

94,162,728

93,969,994

96,755,530

96,544,502

96,254,903

Average shares outstanding-diluted

94,384,443

96,467,728

96,957,441

96,653,401

96,506,827

Tangible shareholders' equity to tangible assets*

9.96%

9.88%

10.26%

9.99%

9.92%

Return on tangible equity **

6.25%

10.23%

11.66%

9.84%

8.81%

Pre-tax pre-provision return on average assets ***

0.87%

1.38%

1.59%

1.29%

1.21%

Tangible book value per share****

$           14.27

$           14.17

$           14.12

$            13.78

$          13.40

Operating earnings per share*****

$             0.33

$             0.36

$             0.41

$              0.33

$            0.30

*

Tangible shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill and other identifiable intangible assets.

**

Return on tangible equity is defined by the Company as annualized net income divided by tangible shareholders' equity.

***

Pre-tax pre-provision return on average assets is defined by the Company as annualized pre-tax pre-provision earnings divided by total average assets.

****

Tangible book value per share is defined by the Company as tangible shareholders' equity divided by total common shares outstanding.

*****

Operating earnings per share is defined by the Company as net operating income divided by average shares outstanding-diluted.

 

SOURCE BancorpSouth, Inc.



RELATED LINKS

http://www.bancorpsouth.com