BancorpSouth Announces Second Quarter 2013 Earnings of $20.8 Million or $0.22 per Diluted Share

TUPELO, Miss., July 22, 2013 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and six months ended June 30, 2013.

Highlights for the second quarter of 2013 included:

  • Net income of $20.8 million or $0.22 per diluted share.
  • Announced the results of a Voluntary Early Retirement Program ("VERO"), which resulted in a pre-tax charge of $10.9 million, or $0.07 per share net of tax, during the quarter and is expected to result in fully phased-in annual pre-tax savings of approximately $9 million, or $0.06 per share net of tax.
  • Announced BancorpSouth Capital Trust I will redeem all of its outstanding 8.15 percent trust preferred securities ("TRUPS") on August 12, 2013, which is expected to result in an annual reduction of interest expense for the Company of $9.1 million, or $0.06 per share net of tax.
  • Generated net loan growth of $97.2 million, or 4.5 percent annualized.
  • Mortgage production of $435.0 million and mortgage sales of $424.4 million, which contributed to mortgage lending revenue of $17.9 million for the quarter, including a positive mortgage servicing rights ("MSR") valuation adjustment of $5.3 million.
  • Insurance commission revenue of $25.9 million, which represents an increase of $2.9 million, or 12.6 percent, on a comparable-quarter basis.
  • Non-performing loans and leases ("NPLs") declined $39.1 million, or 18.9 percent, compared to the first quarter of 2013, while non-performing assets ("NPAs") decreased $47.0 million, or 15.5 percent, over the same period.

The Company reported net income of $20.8 million, or $0.22 per diluted share, for the second quarter of 2013 compared with net income of $20.6 million, or $0.22 per diluted share, for the second quarter of 2012 and net income of $20.8 million, or $0.22 per diluted share, for the first quarter of 2013.  Additionally, the Company reported net income of $41.6 million, or $0.44 per diluted share, for the first six months of 2013 compared to $43.5 million, or $0.47 per diluted share, for the first six months of 2012.  

"Much progress was made during the second quarter towards improving our cost structure and turning our attention toward growth," remarked Dan Rollins, Chief Executive Officer.  "We made two very significant announcements during the quarter.  The VERO and the TRUPS repayment are two items on which we have worked diligently.  These two initiatives are expected to result in annual savings of over $18 million for our Company.  We are also pleased to report quarter-over-quarter loan growth for the first time in over three years.   We've consistently communicated to our team the importance of growing our Company while improving operating efficiency."

Earnings for the quarter benefitted from continued solid performance from noninterest lines of business.  Mortgage production totaled $435.0 million for the quarter, which contributed to mortgage lending revenue of $17.9 million for the quarter, including a positive MSR valuation adjustment of $5.3 million.  Insurance commission revenue totaled $25.9 million for the second quarter, which represents an increase of $2.9 million, or 12.6 percent, compared to $23.0 million for the second quarter of last year. 

Rollins added, "We also continue to be encouraged by the pace at which our credit team is working through the remaining problem assets."  Earnings for the quarter reflect a provision for credit losses of $3.0 million, which is a decrease from $6.0 million for the second quarter of 2012 and $4.0 million for the first quarter of 2013.  NPLs declined $39.1 million, or 18.9 percent, during the second quarter of 2013 to $167.9 million compared with $207.0 million at March 31, 2013 and declined $99.0 million, or 37.1 percent, from $266.9 million at June 30, 2012.  In addition, total NPAs declined $47.0 million, or 15.5 percent, to $256.4 million at June 30, 2013 compared with $303.3 million at March 31, 2013 and declined $154.2 million, or 37.6 percent, from $410.6 million at June 30, 2012.  Net charge-offs declined to $4.6 million for the second quarter of 2013 compared with $5.9 million for the first quarter of 2013 and $11.9 million for the second quarter of 2012.  Net charge-offs during the second quarter of 2013 included $4.3 million of charge-offs of loans which had been identified and reported as impaired and were reserved for in previous quarters. 

Net Interest Revenue

Net interest revenue was $98.2 million for the second quarter of 2013, a decrease of 6.2 percent from $104.7 million for the second quarter of 2012 and an increase of 0.1 percent from $98.1 million for the first quarter of 2013.  The fully taxable equivalent net interest margin was 3.36 percent for the second quarter of 2013 compared to 3.65 percent for the second quarter of 2012 and 3.37 percent for the first quarter of 2013.  Yields on loans and leases declined to 4.62 percent for the second quarter of 2013 compared with 4.99 percent for the second quarter of 2012 and 4.70 percent for the first quarter of 2013 while yields on total interest earning assets declined to 3.82 percent for the second quarter of 2013 compared with 4.27 percent for the second quarter of 2012 and 3.87 percent for the first quarter of 2013.  These declines were partially offset by declines in the average cost of interest bearing liabilities, which was 0.61 percent for the second quarter of 2013 compared with 0.80 percent for the second quarter of 2012 and 0.66 percent for the first quarter of 2013.

Asset, Deposit and Loan Activity

Total assets were $13.2 billion at June 30, 2013 compared with $13.1 billion at June 30, 2012.  Total deposits were $11.0 billion at both June 30, 2013 and June 30, 2012.  Loans and leases, net of unearned income, were $8.7 billion at both June 30, 2013 and June 30, 2012. 

The decrease in time deposits of $305.5 million, or 11.0 percent, at June 30, 2013 compared to June 30, 2012 was offset by significant growth in noninterest bearing demand deposits, which increased $298.7 million, or 12.9 percent, over the same period.  Additionally, savings deposits increased $127.2 million, or 11.7 percent, while interest bearing demand deposits declined $115.2 million, or 2.4 percent, over the same period.  As of June 30, 2013, $901.5 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.65 percent. 

Provision for Credit Losses and Allowance for Credit Losses

For the second quarter of 2013, the provision for credit losses was $3.0 million, compared with $6.0 million for the second quarter of 2012 and $4.0 million for the first quarter of 2013.  Net charge-offs for the second quarter of 2013 were $4.6 million, compared with $11.9 million for the second quarter of 2012 and $5.9 million for the first quarter of 2013.  Recoveries of previously charged-off loans were $7.7 million for the second quarter of 2013, compared with $10.0 million for the second quarter of 2012 and $3.9 million for the first quarter of 2013.  Annualized net charge-offs were 0.21 percent of average loans and leases for the second quarter of 2013, compared with 0.55 percent for the second quarter of 2012 and 0.27 percent for the first quarter of 2013. 

NPLs were $167.9 million, or 1.94 percent of net loans and leases, at June 30, 2013, compared with $266.9 million, or 3.06 percent of net loans and leases, at June 30, 2012, and $207.0 million, or 2.41 percent of net loans and leases, at March 31, 2013.  The allowance for credit losses was $161.0 million, or 1.86 percent of net loans and leases, at June 30, 2013 compared with $175.8 million, or 2.01 percent of net loans and leases, at June 30, 2012 and $162.6 million, or 1.89 percent of net loans and leases, at March 31, 2013. 

NPLs at June 30, 2013 consisted primarily of $149.5 million of nonaccrual loans, compared with $188.2 million of nonaccrual loans at March 31, 2013.  Included in the reduction of nonaccrual loans during the second quarter of 2013 were payments received on nonaccrual loans of $27.5 million, compared with payments received on such loans of $23.6 million during the first quarter of 2013.  NPLs at June 30, 2013 also included $1.4 million of loans 90 days or more past due and still accruing, compared with $1.1 million of such loans at March 31, 2013, and included restructured loans still accruing of $17.0 million at June 30, 2013, compared with $17.7 million of such loans at March 31, 2013.  Early stage past due loans, representing loans 30-89 days past due, declined to $21.2 million at June 30, 2013 from $24.4 million at March 31, 2013.  

At June 30, 2013, $18.8 million of NPLs were residential construction, acquisition and development ("CAD") loans, $27.2 million were other CAD loans, $42.6 million were commercial real estate loans and $37.6 million were consumer mortgages.  NPLs from all other loan types totaled $41.7 million at June 30, 2013.  Included in nonaccrual loans at June 30, 2013 were $72.4 million of loans, or 48.4 percent of total nonaccrual loans, that were paying as agreed, compared with $105.9 million, or 56.3 percent, at March 31, 2013.  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.

Other real estate owned ("OREO") decreased $7.9 million to $88.4 million during the second quarter of 2013 from $96.3 million at March 31, 2013.  This net decrease reflected $9.6 million added through foreclosure, offset by sales of OREO of $15.6 million.  Write-downs in the value of existing properties were $1.9 million for the second quarter of 2013 compared to $1.3 million for the first quarter of 2013.  Sales of OREO during the second quarter of 2013 resulted in a net loss of $0.2 million compared to a net gain of $0.2 million for the first quarter of 2013.  At June 30, 2013, OREO was carried at 43.9 percent of the aggregate loan balances at the time of foreclosure, compared with 42.2 percent at March 31, 2013.

Noninterest Revenue

Noninterest revenue was $76.1 million for the second quarter of 2013, compared with $66.5 million for the second quarter of 2012 and $71.3 million for the first quarter of 2013.  These results included a positive MSR valuation adjustment of $5.3 million for the second quarter of 2013 compared with a negative adjustment of $3.8 million for the second quarter of 2012 and a positive adjustment of $1.0 million for the first quarter of 2013. 

Excluding the MSR valuation adjustments, net mortgage lending revenue was $12.6 million for the second quarter of 2013, compared with $14.9 million for the second quarter of 2012 and $11.3 million for the first quarter of 2013.  Mortgage origination volume for the second quarter of 2013 was $435.0 million, compared with $444.1 million for the second quarter of 2012 and $425.9 million for the first quarter of 2013.

Credit and debit card fee revenue was $8.3 million for the second quarter of 2013, compared with $7.8 million for the second quarter of 2012 and $7.5 million for the first quarter of 2013.  Service charge revenue was $12.8 million for the second quarter of 2013, compared with $13.7 million for the second quarter of 2012 and $12.8 million for the first quarter of 2013.  Insurance commission revenue was $25.9 million for the second quarter of 2013, compared with $23.0 million for the second quarter of 2012 and $26.6 million for the first quarter of 2013. 

Noninterest Expense

Noninterest expense for the second quarter of 2013 was $142.3 million, compared with $136.5 million for the second quarter of 2012 and $135.4 million for the first quarter of 2013.  Noninterest expense for the second quarter of 2013 included a pre-tax charge of $10.9 million related to additional benefits offered under the VERO while noninterest expense for the first quarter of 2013 included a charge of $6.8 million that was recorded to increase the litigation accrual.   Salaries and employee benefits expense was $78.3 million for the second quarter of 2013 compared to $77.7 million for the second quarter of 2012 and $79.4 million for the first quarter of 2013.    Foreclosed property expense was $3.2 million for the second quarter of 2013 compared with $10.2 million for the second quarter of 2012 and $2.4 million for the first quarter of 2013.  Deposit insurance assessments were $2.9 million for the second quarter of 2013 compared to $4.0 million for the second quarter of 2012 and $2.8 million for the first quarter of 2013.

Capital Management

BancorpSouth remains a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 14.21 percent at June 30, 2013 and total risk based capital of 15.47 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 11.04 percent at June 30, 2013, compared with 10.79 percent at June 30, 2012 and 10.94 percent at March 31, 2013.  The ratio of tangible shareholders' equity to tangible assets was 9.04 percent at June 30, 2013, compared with 8.80 percent at June 30, 2012 and 8.96 percent at March 31, 2013.

Summary

Rollins concluded, "Our team is excited about the progress that was made during the second quarter and the momentum that we have heading into the second half of the year.  While the two initiatives announced during the quarter result in significant tangible expense savings for the Company, there remains much work to be done to improve our cost structure.  We continue to work daily on improving operating efficiency in all of our business segments.  We also continue to emphasize the importance of growth, not only with our lenders but also in all of our noninterest lines of business.  We are extremely encouraged by the fact that our production efforts resulted in net loan growth for the quarter.  Our team is energized and focused on continuing to enhance shareholder value." 

Conference Call

BancorpSouth will conduct a conference call to discuss its second quarter 2013 results on July 23, 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.

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.2 billion in assets.  BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 292 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.

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 expense savings related to the VERO, the redemption of the TRUPS, interest expense reduction related to the redemption of the TRUPS, 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 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 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, 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 or 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 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 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.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)














Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended


6/30/2013

3/31/2013

12/31/2012

9/30/2012

6/30/2012

Earnings Summary:






Interest revenue

$           112,009

$             113,027

$            117,095

$            120,750

$           123,204

Interest expense

13,796

14,949

16,234

17,371

18,463

Net interest revenue

98,213

98,078

100,861

103,379

104,741

Provision for credit losses

3,000

4,000

6,000

6,000

6,000

Net interest revenue, after provision






   for credit losses

95,213

94,078

94,861

97,379

98,741

Noninterest revenue

76,109

71,318

70,901

70,420

66,468

Noninterest expense

142,251

135,371

143,219

133,788

136,506

Income before income taxes

29,071

30,025

22,543

34,011

28,703

Income tax expense

8,316

9,220

5,563

10,186

8,079

Net income

$             20,755

$               20,805

$              16,980

$              23,825

$             20,624







Balance Sheet - Period End Balances






Total assets

$      13,217,705

$        13,393,135

$       13,397,198

$       13,235,737

$      13,147,818

Total earning assets

11,961,836

12,263,743

12,179,958

12,050,190

11,906,818

Total securities

2,644,939

2,607,176

2,434,032

2,483,606

2,462,831

Loans and leases, net of unearned income

8,678,714

8,581,538

8,636,989

8,679,969

8,732,395

Allowance for credit losses

161,047

162,601

164,466

169,019

175,847

Total deposits

10,961,618

11,164,926

11,088,146

10,974,640

10,956,337

Long-term debt

33,500

33,500

33,500

33,500

33,500

Total shareholder's equity

1,459,793

1,465,180

1,449,052

1,446,703

1,418,311







Balance Sheet - Average Balances






Total assets

$      13,146,040

$        13,249,374

$       13,143,193

$       13,019,016

$      13,018,231

Total earning assets

12,060,189

12,154,624

12,045,432

11,924,778

11,908,423

Total securities

2,616,274

2,520,414

2,454,031

2,481,201

2,520,932

Loans and leases, net of unearned income

8,588,673

8,580,329

8,635,139

8,716,646

8,735,225

Total deposits

10,938,489

11,090,989

10,938,246

10,856,524

10,908,919

Long-term debt

33,500

33,500

33,500

33,500

33,500

Total shareholder's equity

1,475,211

1,462,140

1,454,417

1,432,157

1,403,733







Nonperforming assets:






Non-accrual loans and leases

$           149,542

$             188,190

$            207,241

$            219,738

$           240,246

Loans and leases 90+ days past due, still accruing

1,440

1,125

1,210

1,442

1,632

Restructured loans and leases, still accruing

16,953

17,702

25,099

26,147

25,071

Non-performing loans (NPLs)

167,935

207,017

233,550

247,327

266,949

Other real estate owned

88,438

96,314

103,248

128,211

143,615

Non-performing assets (NPAs)

$           256,373

$             303,331

$            336,798

$            375,538

$           410,564







Financial Ratios:






Return on average assets

0.63%

0.64%

0.51%

0.73%

0.64%

Return on average shareholders' equity

5.64%

5.77%

4.64%

6.62%

5.91%

Return on tangible equity

7.12%

7.19%

5.84%

8.22%

7.33%

Pre-tax pre-provision return on average assets

0.98%

1.04%

0.86%

1.22%

1.07%

Non-interest income to average assets

2.32%

2.18%

2.15%

2.15%

2.05%

Non-interest expense to average assets

4.34%

4.14%

4.34%

4.09%

4.22%

Net interest margin-fully taxable equivalent

3.36%

3.37%

3.44%

3.55%

3.65%

Net interest rate spread

3.21%

3.21%

3.26%

3.37%

3.47%

Efficiency ratio (tax equivalent)

80.25%

78.55%

81.93%

75.65%

78.31%

Loan/Deposit ratio

79.17%

76.86%

77.89%

79.09%

79.70%

Price to earnings mult (avg)

20.34

18.74

16.16

16.75

18.86

Market value to book value

115.42%

105.88%

94.87%

96.22%

96.68%

Market value to book value (avg)

107.59%

98.61%

90.83%

96.35%

88.82%







Credit Quality Ratios:






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

0.21%

0.27%

0.49%

0.59%

0.55%

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

0.14%

0.19%

0.28%

0.28%

0.27%

Allowance for credit losses to net loans and leases

1.86%

1.89%

1.90%

1.95%

2.01%

Allowance for credit losses to non-performing loans and leases

95.90%

78.54%

70.42%

68.34%

65.87%

Allowance for credit losses to non-performing assets

62.82%

53.61%

48.83%

45.01%

42.83%

Non-performing loans and leases to net loans and leases

1.94%

2.41%

2.70%

2.85%

3.06%

Non-performing assets to net loans and leases

2.95%

3.53%

3.90%

4.33%

4.70%







Equity Ratios:






Total shareholders' equity to total assets

11.04%

10.94%

10.82%

10.93%

10.79%

Tangible shareholders' equity to tangible assets

9.04%

8.96%

8.83%

8.91%

8.80%













Capital Adequacy:






Tier 1 capital

14.21%

14.06%

13.77%

13.55%

13.41%

Total Capital

15.47%

15.31%

15.03%

14.81%

14.66%

Tier 1 leverage capital

10.58%

10.33%

10.25%

10.21%

10.07%

   Estimated for current quarter












Common Share Data:






Basic earnings per share

$                 0.22

$                   0.22

$                  0.18

$                  0.25

$                 0.22

Diluted earnings per share

0.22

0.22

0.18

0.25

0.22

Cash dividends per share

0.01

0.01

0.01

0.01

0.01

Book value per share

15.34

15.39

15.33

15.32

15.02

Tangible book value per share

12.28

12.33

12.23

12.22

11.99

Market value per share (last)

17.70

16.30

14.54

14.74

14.52

Market value per share (high)

18.06

16.52

15.00

15.69

14.70

Market value per share (low)

14.72

14.14

12.55

13.81

12.40

Market value per share (avg)

16.50

15.18

13.92

14.76

13.34

Dividend payout ratio

4.59%

4.55%

5.57%

3.96%

4.58%

Total shares outstanding

95,190,797

95,174,441

94,549,867

94,440,710

94,436,377

Average shares outstanding - basic

95,177,167

94,595,897

94,496,341

94,438,433

94,436,277

Average shares outstanding - diluted

95,405,965

94,756,356

94,616,383

94,528,948

94,541,381













Yield/Rate:






(Taxable equivalent basis)






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

4.62%

4.70%

4.76%

4.85%

4.99%

Available-for-sale securities:






  Taxable

1.55%

1.70%

1.76%

1.86%

2.00%

  Tax-exempt

5.47%

5.53%

5.42%

5.48%

5.76%

Short-term investments

0.25%

0.25%

0.25%

0.26%

0.27%

  Total interest earning assets and revenue

3.82%

3.87%

3.97%

4.13%

4.27%

Deposits:






  Demand - interest bearing

0.21%

0.26%

0.30%

0.33%

0.35%

  Savings

0.14%

0.18%

0.22%

0.25%

0.26%

  Other time

1.23%

1.27%

1.32%

1.38%

1.47%

Short-term borrowings

0.07%

0.07%

0.07%

0.09%

0.09%

Junior subordinated debt

7.16%

7.23%

7.12%

7.13%

7.22%

Long-term debt

4.18%

4.21%

4.14%

4.14%

4.19%

  Total interest bearing liabilities and expense

0.61%

0.66%

0.71%

0.76%

0.80%

Interest bearing liabilities to interest earning assets

74.70%

75.54%

75.15%

76.41%

77.51%



















 







BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)








Jun-13

Mar-13

Dec-12

Sep-12

Jun-12


(Dollars in thousands)

Assets






Cash and due from banks

$                268,647

$                147,947

$                223,814

$                176,529

$                224,084

Interest bearing deposits with other banks

526,608

969,506

979,800

757,207

603,458

Available-for-sale securities, at fair value

2,644,939

2,607,176

2,434,032

2,483,606

2,462,831

Loans and leases

8,711,023

8,614,791

8,672,752

8,716,715

8,771,642

  Less:  Unearned income

32,309

33,253

35,763

36,746

39,247

             Allowance for credit losses

161,047

162,601

164,466

169,019

175,847

Net loans and leases

8,517,667

8,418,937

8,472,523

8,510,950

8,556,548

Loans held for sale

111,574

105,523

129,138

129,408

108,134

Premises and equipment, net

313,079

313,980

319,456

321,068

320,419

Accrued interest receivable

41,425

44,696

44,356

48,314

47,358

Goodwill

275,173

275,173

275,173

275,173

271,297

Bank owned life insurance

235,015

233,007

231,120

203,798

202,620

Other real estate owned

88,438

96,314

103,248

128,211

143,615

Other assets

195,140

180,876

184,538

201,473

207,454

Total Assets

$           13,217,705

$           13,393,135

$           13,397,198

$           13,235,737

$           13,147,818

Liabilities






Deposits:






  Demand:  Noninterest bearing

$             2,610,768

$             2,582,859

$             2,545,169

$             2,492,508

$             2,312,044

                  Interest bearing

4,667,041

4,840,330

4,799,496

4,697,260

4,782,243

  Savings

1,210,497

1,212,736

1,145,785

1,103,490

1,083,255

  Other time

2,473,312

2,529,001

2,597,696

2,681,382

2,778,795

Total deposits

10,961,618

11,164,926

11,088,146

10,974,640

10,956,337

Federal funds purchased and






    securities sold under agreement






    to repurchase

382,871

353,742

414,611

377,676

361,990

Short-term Federal Home Loan Bank borrowings






   and other short-term borrowing

-

-

-

-

1,500

Accrued interest payable

5,230

5,519

6,140

6,759

7,161

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

214,381

209,956

245,437

236,147

208,707

Total Liabilities

11,757,912

11,927,955

11,948,146

11,789,034

11,729,507

Shareholders' Equity






Common stock

237,976

237,936

236,375

236,102

236,091

Capital surplus

312,074

311,091

311,909

311,271

310,388

Accumulated other comprehensive (loss) income

(39,333)

(13,120)

(8,646)

5,952

1,334

Retained earnings

949,076

929,273

909,414

893,378

870,498

Total Shareholders' Equity

1,459,793

1,465,180

1,449,052

1,446,703

1,418,311

Total Liabilities & Shareholders' Equity

$           13,217,705

$           13,393,135

$           13,397,198

$           13,235,737

$           13,147,818













 







BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)








Jun-13

Mar-13

Dec-12

Sep-12

Jun-12


(Dollars in thousands)

Assets






Cash and due from banks

$                160,615

$                169,259

$                164,801

$                152,228

$                152,907

Interest bearing deposits with other banks

765,729

963,600

849,710

605,270

574,624

Available-for-sale securities, at fair value

2,616,274

2,520,414

2,454,031

2,481,201

2,520,932

Federal funds sold and securities






     purchased under agreement to resell

-

-

-

2,717

-

Loans and leases

8,621,849

8,615,503

8,671,559

8,755,094

8,774,767

  Less:  Unearned income

33,176

35,174

36,420

38,448

39,542

             Allowance for credit losses

163,252

166,210

170,081

179,283

185,209

Net loans and leases

8,425,421

8,414,119

8,465,058

8,537,363

8,550,016

Loans held for sale

89,513

90,281

106,552

118,944

77,642

Premises and equipment, net

313,147

316,672

320,439

320,234

320,731

Accrued interest receivable

39,317

40,806

43,144

44,789

45,494

Goodwill

275,173

275,173

275,173

273,867

271,297

Bank owned life insurance

233,670

231,814

208,504

203,151

202,616

Other real estate owned

91,505

97,336

119,852

134,384

155,471

Other assets

135,676

129,900

135,929

144,868

146,501

Total Assets

$           13,146,040

$           13,249,374

$           13,143,193

$           13,019,016

$           13,018,231

Liabilities






Deposits:






  Demand:  Noninterest bearing

$             2,522,577

$             2,463,436

$             2,482,168

$             2,328,948

$             2,248,914

                  Interest bearing

4,707,277

4,891,412

4,703,500

4,704,896

4,769,340

  Savings

1,208,454

1,173,603

1,117,297

1,092,802

1,074,912

  Other time

2,500,181

2,562,538

2,635,281

2,729,878

2,815,753

Total deposits

10,938,489

11,090,989

10,938,246

10,856,524

10,908,919

Federal funds purchased and






    securities sold under agreement






    to repurchase

399,789

360,178

401,968

388,817

374,982

Short-term Federal Home Loan Bank borrowings






   and other short-term borrowing

-

-

-

1,223

1,500

Accrued interest payable

5,481

7,026

7,613

8,404

8,605

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

133,258

135,229

147,137

138,079

126,680

Total Liabilities

11,670,829

11,787,234

11,688,776

11,586,859

11,614,498

Shareholders' Equity






Common stock

237,956

236,922

236,197

236,095

236,091

Capital surplus

311,480

311,603

311,540

310,642

309,634

Accumulated other comprehensive (loss) income

(15,277)

(10,313)

1,260

2,900

(4,020)

Retained earnings

941,052

923,928

905,420

882,520

862,028

Total Shareholders' Equity

1,475,211

1,462,140

1,454,417

1,432,157

1,403,733

Total Liabilities & Shareholders' Equity

$           13,146,040

$           13,249,374

$           13,143,193

$           13,019,016

$           13,018,231













 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)
















Quarter Ended


Year To Date


Jun-13


Mar-13


Dec-12


Sep-12


Jun-12


Jun-13


Jun-12

INTEREST REVENUE:














Loans and leases

$    98,524


$   99,092


$    102,925


$  105,937


$  107,737


$ 197,616


$ 216,749

Deposits with other banks

483


602


529


399


382


1,085


783

Federal funds sold and securities purchased














   under agreement to resell

-


-


-


2


1


-


1

Available-for-sale securities:














    Taxable

8,405


8,700


8,729


9,329


10,188


17,105


21,350

    Tax-exempt

3,911


3,960


4,083


4,109


4,210


7,871


8,466

Loans held for sale

686


673


829


974


686


1,359


1,230

        Total interest revenue

112,009


113,027


117,095


120,750


123,204


225,036


248,579















INTEREST EXPENSE:














Interest bearing demand

2,423


3,125


3,588


3,889


4,185


5,548


8,634

Savings

422


513


606


686


691


935


1,405

Other time

7,671


8,041


8,749


9,482


10,275


15,712


21,566

Federal funds purchased and securities sold














   under agreement to repurchase

70


63


72


73


66


133


129

FHLB borrowings

349


348


349


364


366


697


733

Junior subordinated debt

2,860


2,857


2,869


2,875


2,879


5,717


5,758

Other

1


2


1


2


1


3


3

        Total interest expense

13,796


14,949


16,234


17,371


18,463


28,745


38,228















        Net interest revenue

98,213


98,078


100,861


103,379


104,741


196,291


210,351

  Provision for credit losses

3,000


4,000


6,000


6,000


6,000


7,000


16,000

        Net interest revenue, after provision for














          credit losses

95,213


94,078


94,861


97,379


98,741


189,291


194,351















NONINTEREST REVENUE:














Mortgage lending

17,892


12,346


17,188


13,549


11,040


30,238


26,182

Credit card, debit card and merchant fees

8,324


7,523


8,125


8,270


7,787


15,847


15,310

Deposit service charges

12,824


12,832


13,875


14,189


13,697


25,656


28,813

Trust income

3,192


3,210


3,391


3,101


3,139


6,402


5,421

Security gains, net

3


19


152


39


177


22


251

Insurance commissions

25,862


26,641


20,502


23,519


22,964


52,503


46,117

Other

8,012


8,747


7,668


7,753


7,664


16,759


16,734

        Total noninterest revenue

76,109


71,318


70,901


70,420


66,468


147,427


138,828















NONINTEREST EXPENSE:














Salaries and employee benefits

78,284


79,414


77,203


74,829


77,661


157,698


152,592

Occupancy, net of rental income

10,577


10,237


10,643


10,944


10,487


20,814


20,553

Equipment

4,585


4,948


5,309


5,083


5,124


9,533


10,457

Deposit insurance assessments

2,939


2,804


3,103


3,998


3,994


5,743


9,377

Voluntary early retirement expense

10,850


-


-


-


-


10,850


-

Other

35,016


37,968


46,961


38,934


39,240


72,984


79,207

        Total noninterest expenses

142,251


135,371


143,219


133,788


136,506


277,622


272,186

        Income before income taxes

29,071


30,025


22,543


34,011


28,703


59,096


60,993

Income tax expense

8,316


9,220


5,563


10,186


8,079


17,536


17,503

        Net income

$    20,755


$   20,805


$     16,980


$    23,825


$   20,624


$  41,560


$  43,490















Net income per share: Basic

$       0.22


$       0.22


$         0.18


$       0.25


$       0.22


$      0.44


$      0.47

                                  Diluted

$       0.22


$       0.22


$         0.18


$       0.25


$       0.22


$      0.44


$      0.47





























 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Jun-13


Mar-13


Dec-12


Sep-12


Jun-12

LOAN AND LEASE PORTFOLIO:










Commercial and industrial

$ 1,552,762


$ 1,480,916


$ 1,476,611


$ 1,462,719


$ 1,497,678

Real estate










   Consumer mortgages

1,880,338


1,871,312


1,873,875


1,888,783


1,904,420

   Home equity

482,068


482,398


486,074


492,833


496,245

   Agricultural

237,914


249,467


256,196


257,733


251,975

   Commercial and industrial-owner occupied

1,375,711


1,334,974


1,333,103


1,309,631


1,288,887

   Construction, acquisition and development

709,499


728,092


735,808


823,692


835,022

   Commercial real estate

1,754,841


1,739,533


1,748,881


1,738,516


1,748,748

Credit cards

103,251


98,803


104,884


101,405


101,085

All other

582,330


596,043


621,557


604,657


608,335

     Total loans

$ 8,678,714


$ 8,581,538


$ 8,636,989


$ 8,679,969


$ 8,732,395











ALLOWANCE FOR CREDIT LOSSES:










Balance, beginning of period

$   162,601


$    164,466


$    169,019


$   175,847


$    181,777











Loans and leases charged off:










Commercial and industrial

(1,008)


(1,938)


(2,174)


(4,334)


(1,582)

Real estate










   Consumer mortgages

(3,114)


(1,614)


(3,789)


(2,299)


(2,818)

   Home equity

(201)


(602)


(1,064)


(270)


(536)

   Agricultural

(327)


(2)


(456)


(302)


(386)

   Commercial and industrial-owner occupied

(830)


(300)


(1,421)


(994)


(2,732)

   Construction, acquisition and development

(2,036)


(1,198)


(5,286)


(6,845)


(9,560)

   Commercial real estate

(3,720)


(3,141)


(4,026)


(2,633)


(3,260)

Credit cards

(557)


(450)


(531)


(540)


(588)

All other

(462)


(492)


(977)


(731)


(438)

     Total loans charged off

(12,255)


(9,737)


(19,724)


(18,948)


(21,900)











Recoveries:










Commercial and industrial

747


589


3,507


1,007


1,040

Real estate










   Consumer mortgages

708


1,108


819


256


438

   Home equity

184


260


66


37


78

   Agricultural

120


13


10


53


53

   Commercial and industrial-owner occupied

1,439


254


561


270


1,514

   Construction, acquisition and development

360


886


1,621


2,676


1,955

   Commercial real estate

3,634


339


2,208


1,443


4,504

Credit cards

184


148


144


144


121

All other

325


275


235


234


267

     Total recoveries

7,701


3,872


9,171


6,120


9,970











Net charge-offs

(4,554)


(5,865)


(10,553)


(12,828)


(11,930)











Provision charged to operating expense

3,000


4,000


6,000


6,000


6,000

Balance, end of period

$   161,047


$    162,601


$    164,466


$   169,019


$    175,847











Average loans for period

$ 8,588,673


$ 8,580,329


$ 8,635,139


$ 8,716,646


$ 8,735,225











Ratio:










Net charge-offs to average loans (annualized)

0.21%


0.27%


0.49%


0.59%


0.55%





















 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Jun-13


Mar-13


Dec-12


Sep-12


Jun-12

NON-PERFORMING ASSETS










NON-PERFORMING LOANS AND LEASES:










  Nonaccrual Loans and Leases










    Commercial and industrial

$      6,225


$         7,009


$         9,311


$      8,674


$       13,156

    Real estate










       Consumer mortgages

34,226


39,012


36,133


35,599


35,660

       Home equity

3,862


4,272


3,497


3,471


2,995

       Agricultural

5,007


6,667


7,587


7,190


8,390

       Commercial and industrial-owner occupied

17,084


20,719


20,910


27,059


26,957

       Construction, acquisition and development

39,315


51,728


66,635


92,351


104,283

       Commercial real estate

40,940


55,318


57,656


40,514


44,359

    Credit cards

398


418


415


465


364

    All other

2,485


3,047


5,097


4,415


4,082

         Total nonaccrual loans and leases

$  149,542


$      188,190


$      207,241


$  219,738


$      240,246











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










    Commercial and industrial

$            -


$             22


$            414


$          45


$                -

    Real estate










       Consumer mortgages

1,107


842


512


1,027


1,141

       Home equity

-


-


-


-


-

       Agricultural

-


-


10


-


-

       Commercial and industrial-owner occupied

-


-


19


119


-

       Construction, acquisition and development

-


-


-


-


-

       Commercial real estate

120


-


-


-


-

    Credit cards

213


261


228


236


324

    All other

-


-


27


15


167

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

1,440


1,125


1,210


1,442


1,632











  Restructured Loans and Leases, Still Accruing

16,953


17,702


25,099


26,147


25,071

     Total non-performing loans and leases

167,935


207,017


233,550


247,327


266,949











OTHER REAL ESTATE OWNED:

88,438


96,314


103,248


128,211


143,615











Total Non-performing Assets

$  256,373


$      303,331


$      336,798


$  375,538


$      410,564











Additions to Nonaccrual Loans and Leases During the Quarter

$    21,890


$       22,294


$       44,674


$    28,918


$       41,121











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










    Commercial and industrial

$      1,517


$         1,764


$         3,080


$      6,065


$         3,040

    Real estate










       Consumer mortgages

11,887


11,720


13,403


14,745


14,436

       Home equity

1,315


1,567


1,272


1,766


1,311

       Agricultural

569


757


306


977


471

       Commercial and industrial-owner occupied

1,323


956


3,498


4,859


2,745

       Construction, acquisition and development

1,835


4,292


2,303


8,528


2,062

       Commercial real estate

535


1,331


1,176


3,210


1,288

    Credit cards

668


544


777


734


673

    All other

1,591


1,473


2,422


2,861


2,544

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

$    21,240


$       24,404


$       28,237


$    43,745


$       28,570











Credit Quality Ratios:










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

0.14%


0.19%


0.28%


0.28%


0.27%

Allowance for credit losses to net loans and leases

1.86%


1.89%


1.90%


1.95%


2.01%

Allowance for credit losses to non-performing assets

62.82%


53.61%


48.83%


45.01%


42.83%

Allowance for credit losses to non-performing loans and leases

95.90%


78.54%


70.42%


68.34%


65.87%

Non-performing loans and leases to net loans and leases

1.94%


2.41%


2.70%


2.85%


3.06%

Non-performing assets to net loans and leases

2.95%


3.53%


3.90%


4.33%


4.70%





















 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Jun-13


Mar-13


Dec-12


Sep-12


Jun-12

REAL ESTATE CONSTRUCTION, ACQUISITION 










   AND DEVELOPMENT ("CAD") PORTFOLIO:










  Outstanding Balance










     Multi-family construction

$       8,902


$         8,182


$         6,542


$       4,546


$         2,378

     One-to-four family construction

202,603


193,032


177,392


189,561


182,648

     Recreation and all other loans

42,132


42,909


44,840


62,888


66,033

     Commercial construction

117,901


111,702


114,099


126,296


112,929

     Commercial acquisition and development

136,174


154,997


161,546


177,887


182,570

     Residential acquisition and development

201,787


217,270


231,389


262,514


288,464

         Total outstanding balance

$   709,499


$      728,092


$      735,808


$   823,692


$      835,022











  Nonaccrual CAD Loans










     Multi-family construction

$             -


$                -


$                -


$             -


$                -

     One-to-four family construction

6,193


8,154


10,609


14,171


15,490

     Recreation and all other loans

800


978


1,160


1,166


380

     Commercial construction

2,765


3,381


5,889


6,991


4,318

     Commercial acquisition and development

14,225


14,240


17,337


21,408


21,741

     Residential acquisition and development

15,332


24,975


31,640


48,615


62,354

         Total nonaccrual CAD loans

39,315


51,728


66,635


92,351


104,283











  CAD Loans 90+ Days Past Due, Still Accruing:










     Multi-family construction

-


-


-


-


-

     One-to-four family construction

-


-


-


-


-

     Recreation and all other loans

-


-


-


-


-

     Commercial construction

-


-


-


-


-

     Commercial acquisition and development

-


-


-


-


-

     Residential acquisition and development

-


-


-


-


-

         Total CAD loans 90+ days past due, still accruing

-


-


-


-


-











  Restructured CAD Loans, Still Accruing










     Multi-family construction

-


-


-


-


-

     One-to-four family construction

867


-


781


787


793

     Recreation and all other loans

15


17


17


20


842

     Commercial construction

351


-


-


-


-

     Commercial acquisition and development

2,030


2,047


458


133


260

     Residential acquisition and development

3,458


5,148


4,107


4,149


4,048

         Total restructured CAD loans, still accruing

6,721


7,212


5,363


5,089


5,943











        Total Non-performing CAD loans

$     46,036


$       58,940


$       71,998


$     97,440


$      110,226











  CAD NPL as a % of Outstanding CAD Balance










     Multi-family construction

-


-


-


-


-

     One-to-four family construction

3.5%


4.2%


6.4%


7.9%


8.9%

     Recreation and all other loans

1.9%


2.3%


2.6%


1.9%


1.9%

     Commercial construction

2.6%


3.0%


5.2%


5.5%


3.8%

     Commercial acquisition and development

11.9%


10.5%


11.0%


12.1%


12.1%

     Residential acquisition and development

9.3%


13.9%


15.4%


20.1%


23.0%

         Total CAD NPL as a % of outstanding CAD balance

6.5%


8.1%


9.8%


11.8%


13.2%































 

BancorpSouth, Inc.





Selected Loan Data





(Dollars in thousands)





(Unaudited)




















June 30, 2013




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$ 1,504,523


$       14,918


$       29,648


$        531


$                -


$    3,142


$ 1,552,762

Real estate














   Consumer mortgages

1,701,566


40,526


121,497


2,979


134


13,636


1,880,338

   Home equity

458,379


5,391


15,752


698


68


1,780


482,068

   Agricultural

210,989


9,568


13,599


-


-


3,758


237,914

   Commercial and industrial-owner occupied

1,275,037


28,413


59,568


222


-


12,471


1,375,711

   Construction, acquisition and development

594,175


28,727


51,041


1,025


-


34,531


709,499

   Commercial real estate

1,537,671


63,791


117,579


245


30


35,525


1,754,841

Credit cards

103,251


-


-


-


-


-


103,251

All other

566,554


5,613


8,991


523


-


649


582,330

     Total loans

$ 7,952,145


$      196,947


$      417,675


$      6,223


$            232


$ 105,492


$ 8,678,714






























March 31, 2013




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$ 1,430,760


$       14,297


$       31,749


$        546


$            105


$    3,459


$ 1,480,916

Real estate














   Consumer mortgages

1,691,053


33,895


126,589


3,207


88


16,480


1,871,312

   Home equity

458,264


5,269


15,908


893


27


2,037


482,398

   Agricultural

218,018


9,508


17,097


-


-


4,844


249,467

   Commercial and industrial-owner occupied

1,219,024


33,370


68,024


190


148


14,218


1,334,974

   Construction, acquisition and development

577,477


35,525


68,648


626


-


45,816


728,092

   Commercial real estate

1,508,593


63,186


117,806


245


-


49,703


1,739,533

Credit cards

98,803


-


-


-


-


-


98,803

All other

576,244


9,535


8,478


547


5


1,234


596,043

     Total loans

$ 7,778,236


$      204,585


$      454,299


$      6,254


$            373


$ 137,791


$ 8,581,538





























 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












As of


Jun-13


Mar-13


Dec-12


Sep-12


Jun-12





















Unpaid principal balance of impaired loans

$    144,408


$      183,440


$      206,072


$  225,581


$      259,703

Cumulative charge-offs on impaired loans

38,916


45,649


49,344


49,442


59,326

Impaired nonaccrual loan and lease outstanding balance

105,492


137,791


156,728


176,139


200,377











Other non-accrual loans and leases not impaired

44,050


50,399


50,513


43,599


39,869











     Total non-accrual loans and leases

$    149,542


$      188,190


$      207,241


$  219,738


$      240,246











Allowance for impaired loans

7,965


11,658


10,541


18,205


23,939











     Nonaccrual loans and leases, net of specific reserves

$    141,577


$      176,532


$      196,700


$  201,533


$      216,307











Loans and leases 90+ days past due, still accruing

$        1,440


$         1,125


$         1,210


$      1,442


$         1,632

Restructured loans and leases, still accruing

16,953


17,702


25,099


26,147


25,071











     Total non-performing loans and leases

$    167,935


$      207,017


$      233,550


$  247,327


$      266,949











Allowance for impaired loans

$        7,965


$       11,658


$       10,541


$    18,205


$       23,939

Allowance for all other loans and leases

153,082


150,943


153,925


150,814


151,908











     Total allowance for credit losses

$    161,047


$      162,601


$      164,466


$  169,019


$      175,847











Outstanding balance of impaired loans

$    105,492


$      137,791


$      156,728


$  176,139


$      200,377

Allowance for impaired loans

7,965


11,658


10,541


18,205


23,939











     Net book value of impaired loans

$      97,527


$      126,133


$      146,187


$  157,934


$      176,438





















Net book value of impaired loans as a %










     of unpaid principal balance

68%


69%


71%


70%


68%











Coverage of other non-accrual loans and leases not impaired by










     the allowance for all other loans and leases

348%


299%


305%


346%


381%











Coverage of non-performing loans and leases not impaired










     by the allowance for all other loans and leases

245%


218%


200%


212%


228%





















 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)




















June 30, 2013


Alabama








Greater






Corporate




and Florida








Memphis




Texas and 


Banking




Panhandle


Arkansas*


Mississippi*


Missouri


Area


Tennessee*


Louisiana


and Other


Total

LOAN AND LEASE PORTFOLIO:


















Commercial and industrial

$     74,206


$     162,329


$       299,752


$     39,482


$      22,287


$     80,889


$       249,640


$     624,177


$    1,552,762

Real estate


















   Consumer mortgages

109,591


252,400


697,450


45,578


98,699


154,150


465,992


56,478


1,880,338

   Home equity

61,802


37,920


161,195


21,196


68,133


67,750


61,292


2,780


482,068

   Agricultural

7,906


74,970


55,706


3,226


15,558


12,291


62,785


5,472


237,914

   Commercial and industrial-owner occupied

140,843


171,035


462,805


63,546


95,645


86,590


272,879


82,368


1,375,711

   Construction, acquisition and development

97,522


67,579


175,817


32,995


76,679


101,142


147,135


10,630


709,499

   Commercial real estate

237,154


301,709


285,156


186,444


104,652


91,941


401,372


146,413


1,754,841

Credit cards

-


-


-


-


-


-


-


103,251


103,251

All other

30,494


75,129


156,745


2,708


52,646


40,683


94,513


129,412


582,330

     Total loans

$    759,518


$  1,143,071


$     2,294,626


$    395,175


$    534,299


$   635,436


$    1,755,608


$  1,160,981


$    8,678,714



















CAD PORTFOLIO:


















Multi-family construction

$              -


$               -


$                 8


$              -


$              -


$       5,561


$          3,333


$               -


$          8,902

One-to-four family construction

33,574


13,258


41,768


12,257


11,557


50,833


38,286


1,070


202,603

Recreation and all other loans

1,424


8,792


11,336


292


4,893


814


14,581


-


42,132

Commercial construction

22,367


15,042


22,004


2,924


9,086


15,429


26,972


4,077


117,901

Commercial acquisition and development

12,795


15,038


39,304


7,182


24,464


12,721


22,723


1,947


136,174

Residential acquisition and development

27,362


15,449


61,397


10,340


26,679


15,784


41,240


3,536


201,787

     Total CAD loans

$     97,522


$       67,579


$       175,817


$     32,995


$      76,679


$   101,142


$       147,135


$       10,630


$       709,499



















NON-PERFORMING LOANS AND LEASES:


















Commercial and industrial

$       1,542


$           973


$             315


$           25


$          185


$           44


$          1,239


$        2,204


$          6,527

Real estate


















   Consumer mortgages

2,248


1,846


11,848


971


3,451


3,673


6,741


6,792


37,570

   Home equity

997


110


853


132


424


1,001


343


2


3,862

   Agricultural

79


3,797


318


361


472


162


254


1


5,444

   Commercial and industrial-owner occupied

1,811


3,186


9,154


773


1,644


2,685


883


945


21,081

   Construction, acquisition and development

11,596


1,357


6,058


6,351


12,388


2,910


3,831


1,545


46,036

   Commercial real estate

8,445


7,388


3,123


13,844


6,095


678


1,855


1,167


42,595

Credit cards

-


-


-


-


-


-


-


2,320


2,320

All other

389


247


878


13


34


268


645


26


2,500

     Total loans

$     27,107


$       18,904


$         32,547


$     22,470


$      24,693


$     11,421


$        15,791


$       15,002


$       167,935



















NON-PERFORMING LOANS AND LEASES


















   AS A PERCENTAGE OF OUTSTANDING:


















Commercial and industrial

2.08%


0.60%


0.11%


0.06%


0.83%


0.05%


0.50%


0.35%


0.42%

Real estate


















   Consumer mortgages

2.05%


0.73%


1.70%


2.13%


3.50%


2.38%


1.45%


12.03%


2.00%

   Home equity

1.61%


0.29%


0.53%


0.62%


0.62%


1.48%


0.56%


0.07%


0.80%

   Agricultural

1.00%


5.06%


0.57%


11.19%


3.03%


1.32%


0.40%


0.02%


2.29%

   Commercial and industrial-owner occupied

1.29%


1.86%


1.98%


1.22%


1.72%


3.10%


0.32%


1.15%


1.53%

   Construction, acquisition and development

11.89%


2.01%


3.45%


19.25%


16.16%


2.88%


2.60%


14.53%


6.49%

   Commercial real estate

3.56%


2.45%


1.10%


7.43%


5.82%


0.74%


0.46%


0.80%


2.43%

Credit cards

-


-


-


-


-


-


-


2.25%


2.25%

All other

1.28%


0.33%


0.56%


0.48%


0.06%


0.66%


0.68%


0.02%


0.43%

     Total loans

3.57%


1.65%


1.42%


5.69%


4.62%


1.80%


0.90%


1.29%


1.94%





































*Excludes the Greater Memphis Area.


















 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)




















June 30, 2013


Alabama








Greater










and Florida








Memphis




Texas and 






Panhandle


Arkansas*


Mississippi*


Missouri


Area


Tennessee*


Louisiana


Other


Total

OTHER REAL ESTATE OWNED:


















Commercial and industrial

$        242


$                -


$                -


$            -


$                -


$             -


$           -


$           -


$         242

Real estate


















   Consumer mortgages

1,072


799


2,205


-


776


185


461


103


5,601

   Home equity

-


-


166


-


-


169


-


-


335

   Agricultural

875


-


-


-


1,112


2,215


-


-


4,202

   Commercial and industrial-owner occupied

238


110


826


-


1,845


-


242


-


3,261

   Construction, acquisition and development

13,147


1,238


12,773


157


33,456


7,839


78


234


68,922

   Commercial real estate

358


314


128


2,475


1,648


145


135


-


5,203

All other

-


10


307


94


125


13


91


32


672

     Total loans

$    15,932


$         2,471


$       16,405


$      2,726


$       38,962


$    10,566


$    1,007


$       369


$    88,438




















Quarter Ended










Jun-13


Mar-13


Dec-12


Sep-12


Jun-12









OTHER REAL ESTATE OWNED:


















Balance, beginning of period

$    96,314


$      103,248


$      128,211


$  143,615


$      167,808









Additions to foreclosed properties


















   New foreclosed property

9,639


2,222


8,451


6,268


6,904









Reductions in foreclosed properties


















   Sales

(15,641)


(7,811)


(27,892)


(15,392)


(26,165)









   Writedowns

(1,874)


(1,345)


(5,522)


(6,280)


(4,932)









Balance, end of period

$    88,438


$       96,314


$      103,248


$  128,211


$      143,615



























FORECLOSED PROPERTY EXPENSE


















Loss/(gain) on sale of other real estate owned

$        166


$          (200)


$         4,203


$        765


$         2,708









Writedown of other real estate owned

1,874


1,345


5,522


6,280


4,932









Other foreclosed property expense

1,205


1,209


2,266


1,749


2,572









Total foreclosed property expense

$      3,245


$         2,354


$       11,991


$      8,794


$       10,212













































*Excludes the Greater Memphis Area.


















 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)












Quarter Ended


Jun-13


Mar-13


Dec-12


Sep-12


Jun-12

NONINTEREST REVENUE:










Mortgage lending

$    17,892


$       12,346


$       17,188


$    13,549


$       11,040

Credit card, debit card and merchant fees

8,324


7,523


8,125


8,270


7,787

Deposit service charges

12,824


12,832


13,875


14,189


13,697

Trust income

3,192


3,210


3,391


3,101


3,139

Securities gains, net

3


19


152


39


177

Insurance commissions

25,862


26,641


20,502


23,519


22,964

Annuity fees

543


483


418


548


635

Brokerage commissions and fees

2,068


2,093


1,715


1,782


1,779

Bank-owned life insurance

2,008


1,887


1,899


1,750


1,812

Other miscellaneous income

3,393


4,284


3,636


3,673


3,438

     Total noninterest revenue

$    76,109


$       71,318


$       70,901


$    70,420


$       66,468











NONINTEREST EXPENSE:










Salaries and employee benefits

$    78,284


$       79,414


$       77,203


$    74,829


$       77,661

Occupancy, net of rental income

10,577


10,237


10,643


10,944


10,487

Equipment

4,585


4,948


5,309


5,083


5,124

Deposit insurance assessments

2,939


2,804


3,103


3,998


3,994

Voluntary early retirement expense

10,850


-


-


-


-

Advertising

1,169


743


2,045


1,081


902

Foreclosed property expense

3,245


2,354


11,991


8,794


10,212

Telecommunications

2,184


2,099


2,168


2,118


2,023

Public relations

1,175


1,005


1,304


1,309


1,355

Data processing

2,783


2,468


2,714


2,312


2,444

Computer software

2,146


1,963


2,031


1,856


1,786

Amortization of intangibles

722


743


857


860


742

Legal

3,896


9,366


3,133


3,004


981

Postage and shipping

1,074


1,135


1,117


1,060


1,033

Other miscellaneous expense

16,622


16,092


19,601


16,540


17,762

Total noninterest expense

$  142,251


$      135,371


$      143,219


$  133,788


$      136,506











INSURANCE COMMISSIONS:










Property and casualty commissions

$    18,762


$       16,878


$       14,968


$    17,704


$       16,894

Life and health commissions

5,093


4,688


4,376


4,651


4,681

Risk management income

573


650


581


698


618

Other

1,434


4,425


577


466


771

Total insurance commissions

$    25,862


$       26,641


$       20,502


$    23,519


$       22,964











 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)












Quarter Ended


Jun-13


Mar-13


Dec-12


Sep-12


Jun-12

MORTGAGE SERVICING RIGHTS:










Fair value, beginning of period

$     41,478


$       37,882


$       34,562


$     34,167


$       35,668

Additions to mortgage servicing rights:










   Originations of servicing assets

4,012


4,268


5,146


5,784


4,076

Changes in fair value:










   Due to payoffs/paydowns

(1,739)


(1,705)


(2,005)


(2,181)


(1,737)

   Due to change in valuation inputs or










     assumptions used in the valuation model

5,252


1,037


183


(3,206)


(3,837)

   Other changes in fair value

(2)


(4)


(4)


(2)


(3)

Fair value, end of period

$     49,001


$       41,478


$       37,882


$     34,562


$       34,167











MORTGAGE LENDING REVENUE:










Origination

$     10,471


$         9,187


$       15,131


$     15,326


$       13,119

Servicing

3,908


3,827


3,879


3,610


3,495

MSR payoffs/paydowns

(1,739)


(1,705)


(2,005)


(2,181)


(1,737)

MSR valuation adjustment

5,252


1,037


183


(3,206)


(3,837)

Total mortgage lending revenue

$     17,892


$       12,346


$       17,188


$     13,549


$       11,040











Mortgage loans serviced

$ 5,393,580


$   5,236,852


$   5,058,912


$ 4,841,075


$   4,600,799

MSR/mtg loans serviced

0.91%


0.79%


0.75%


0.71%


0.74%











AVAILABLE-FOR-SALE SECURITIES, at fair value










U.S. Government agencies

$ 1,581,570


$   1,517,725


$   1,401,996


$ 1,472,747


$   1,481,060

Government agency issued residential










   mortgage-back securities

292,586


334,550


366,875


338,230


360,489

Government agency issued commercial










   mortgage-back securities

227,381


196,459


91,445


90,306


35,895

Obligations of states and political subdivisions

535,337


550,475


565,873


574,559


577,629

Other

8,065


7,967


7,843


7,764


7,758

Total available-for-sale securities

$ 2,644,939


$   2,607,176


$   2,434,032


$ 2,483,606


$   2,462,831





















 

BancorpSouth, Inc.


Reconciliation of Non-GAAP Measures


(Dollars in thousands, except per share amounts)


(Unaudited)




























Certain financial information included in this press release are determined by methods other than in accordance with GAAP.  Management believes such measures are relevant to understanding the capital position and performance of the Company.  The non-GAAP financial measures presented in this press release are tangible shareholders' equity to tangible assets, return on tangible equity, pre-tax pre-provision return on average assets, and tangible book value per share.  Additionally, disclosure of these non-GAAP financial measures provides a meaningful base for comparability to other financial institutions.  Non-GAAP financial measures are not formally defined by GAAP, and other entities may use calculation methods different than those used by the Company.















Reconciliation of Pre-tax, Pre-provision Earnings:




























Quarter ended





6/30/2013


3/31/2013


12/31/2012


9/30/2012


6/30/2012















Net income


$          20,755


$          20,805


$          16,980


$          23,825


$         20,624


Plus:

Provision for credit losses


3,000


4,000


6,000


6,000


6,000



Income tax expense


8,316


9,220


5,563


10,186


8,079


Pre-tax, pre-provision earnings


$          32,071


$          34,025


$          28,543


$          40,011


$         34,703






























Reconciliation of Tangible Assets and Tangible Shareholders' Equity to 










Total Assets and Total Shareholders' Equity:




























Quarter ended





6/30/2013


3/31/2013


12/31/2012


9/30/2012


6/30/2012


Tangible assets












Total assets


$    13,217,705


$    13,393,135


$    13,397,198


$    13,235,737


$   13,147,818


Less:  

Goodwill


275,173


275,173


275,173


275,173


271,297



Other identifiable intangible assets


15,865


16,586


17,329


17,932


15,108


Total tangible assets


$    12,926,667


$    13,101,376


$    13,104,696


$    12,942,632


$   12,861,413















Tangible shareholders' equity












Total shareholders' equity


$     1,459,793


$     1,465,180


$     1,449,052


$      1,446,703


$    1,418,311


Less:

Goodwill


275,173


275,173


275,173


275,173


271,297



Other identifiable intangible assets


15,865


16,586


17,329


17,932


15,108


Total tangible shareholders' equity


$     1,168,755


$     1,173,421


$     1,156,550


$      1,153,598


$    1,131,906















Total average assets


$    13,146,040


$    13,249,374


$    13,143,193


$    13,019,016


$   13,018,231


Total common shares outstanding


95,190,797


95,174,441


94,549,867


94,440,710


94,436,377















Tangible shareholders' equity to tangible assets*


9.04%


8.96%


8.83%


8.91%


8.80%


Return on tangible equity **


7.12%


7.19%


5.84%


8.22%


7.33%


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


0.98%


1.04%


0.86%


1.22%


1.07%


Tangible book value per share****


$           12.28


$           12.33


$           12.23


$            12.22


$          11.99




























*

Tangible shareholder' 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.















 

SOURCE BancorpSouth, Inc.



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