BancorpSouth Announces Third Quarter 2010 Financial Results
TUPELO, Miss., Oct. 25 /PRNewswire-FirstCall/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended September 30, 2010. The Company had net income of $11.3 million, or $0.13 per diluted share, for the quarter compared with $21.5 million, or $0.26 per diluted share, for the third quarter of 2009.
Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth, remarked, "BancorpSouth's financial results for the third quarter of 2010 continued to reflect a challenging credit environment, with weak loan demand and significant growth in non-performing loans. Our results included a $9.8 million income tax benefit, which reflected a change in the estimate of income tax expense for 2010 and was based on the estimated income tax benefit attributable to the results of operations through September 30, 2010.
"The decline in earnings for the third quarter of 2010 from the third quarter of 2009 was primarily due to a $32.3 million increase in the provision for credit losses to $54.9 million compared with $22.5 million for the third quarter of 2009.
"BancorpSouth's non-performing loans and leases (NPLs) increased by $107.1 million during the third quarter of 2010 to $409.4 million at quarter-end, which was 4.3 percent of total net loans and leases. Contributing to the increase in NPLs were increases in non-performing construction, acquisition and development (CAD) loans of $65.0 million, commercial and real estate mortgage loans of $10.3 million and real estate secured commercial and industrial loans of $20.6 million. NPLs from all other loan types increased $11.2 million.
"The Alabama, Nashville and Greater Memphis, Tennessee markets continue to be affected by a slow housing market, and collectively contributed $47.2 million of the total increase in NPLs during the third quarter. NPLs in our Missouri Region increased by $30.5 million during the third quarter of 2010, primarily as a result of three large loans being placed on non-performing status. This amount includes one credit totaling $12.2 million that is a troubled debt restructuring, but is still accruing.
"We believe that we are appropriately reserved for losses inherent in our loan portfolio. At September 30, 2010, approximately 70 percent of our non-accrual loans had been determined to be collaterally dependent and had either been charged down or had a specific reserve to reflect values obtained from appraisals. As a result of these write-downs and reserves, the remaining net book balance of impaired loans was 64 percent of the unpaid principal balance. The allowance for credit losses that was not specifically allocated to impaired loans represented 154 percent of the remaining unimpaired non-accrual loan balance.
"Our operations produced increased pre-tax, pre-provision income on a comparable and sequential-quarter basis due in part to the strong performance of our mortgage production and servicing operations. With mortgage originations for the third quarter totaling $490 million, mortgage lending revenue, excluding the MSR valuation adjustment, for the third quarter of 2010 more than doubled compared with the third quarter of 2009 and the second quarter of 2010. This growth contributed to the increase in noninterest revenue for the third quarter of 2010 to 38.9% of total revenue. The financial results of other areas of our business remained relatively stable on a comparable and sequential-quarter basis, and we continued to manage our costs well. As a result, our pre-tax, pre-provision earnings were $56.3 million for the third quarter of 2010 compared with $51.5 million for the third quarter of 2009 and $46.4 million for the second quarter of 2010.
"As this performance indicates, we remain positioned to produce stronger financial results as our credit metrics stabilize. While our third quarter results show that we have not yet reached that inflection point, we believe that our credit issues are at manageable levels and we continue to have strong capital and liquidity. In short, we are continuing to manage effectively in the current difficult environment, and we are confident of BancorpSouth's long-term growth potential."
Net Interest Revenue
Net interest revenue was $109.7 million for the third quarter of 2010, a decrease of 1.8 percent from $111.7 million for the third quarter of 2009 and a 0.3 percent increase from $109.3 million for the second quarter of 2010. The fully taxable equivalent net interest margin was 3.64 percent for the third quarter of 2010, compared with 3.77 percent for the third quarter of 2009 and 3.71 percent for the second quarter of 2010.
The decline in net interest margin reflected the higher average level of NPLs for the third quarter of 2010. In addition, the combination of increased deposits and weak loan demand resulted in higher levels of short-term investments with relatively low yields.
Asset, Deposit and Loan Activity
Total assets at September 30, 2010 were $13.6 billion, an increase of 2.3 percent compared with $13.3 billion at September 30, 2009. Total deposits were $11.2 billion at September 30, 2010, an increase of 8.7 percent from $10.3 billion at September 30, 2009. Loans and leases, net of unearned income, were $9.5 billion at September 30, 2010, a decrease of 2.5 percent from $9.8 billion at September 30, 2009.
Loan demand continued to be relatively weak during the third quarter, resulting in a somewhat larger percentage decline in the loan portfolio at September 30, 2010 than experienced at June 30, 2010. Of the $243.0 million decrease in the portfolio at September 30, 2010 compared to September 30, 2009, $226.4 million were CAD loans.
Deposits increased by $899.8 million at September 30, 2010 compared to September 30, 2009. This growth was comprised of increases of 12.5 percent in savings deposits, 11.2 percent in noninterest bearing demand deposits, 14.0 percent in interest bearing demand deposits and 1.2 percent in time deposits. While total deposits remained essentially unchanged from the end of the second quarter of 2010, interest bearing demand accounts and time accounts decreased 2.2 percent and 0.6 percent, respectively, during the three-month period while noninterest bearing demand deposits increased 3.7 percent and savings deposits rose 4.0 percent.
Provision for Credit Losses and Allowance for Credit Losses
For the third quarter of 2010, the provision for credit losses was $54.9 million, compared with $22.5 million for the third quarter of 2009 and $62.4 million for the second quarter of 2010. Annualized net charge-offs were 2.10 percent of average loans and leases for the third quarter of 2010, compared with 0.68 percent for the third quarter of 2009 and 2.08 percent for the second quarter of 2010.
NPLs increased to $409.4 million, or 4.30 percent of net loans and leases, at September 30, 2010 from $111.6 million, or 1.14 percent of net loans and leases, at September 30, 2009 and $302.3 million, or 3.13 percent of net loans and leases, at June 30, 2010. The allowance for credit losses increased to 2.16 percent of net loans and leases at September 30, 2010, compared with 1.48 percent at September 30, 2009 and 2.08 percent at June 30, 2010.
Total NPLs at September 30, 2010 consisted of: $347.2 million of loans on nonaccrual status, an increase from $263.8 million at June 30, 2010; $9.9 million of loans 90 days or more past due and still accruing, a decrease from $17.7 million at June 30, 2010; and restructured loans still accruing of $52.3 million, an increase from $20.8 million at June 30, 2010. Loans and leases 30-89 days past due decreased 43.6 percent to $73.8 million at September 30, 2010 from $130.9 million at June 30, 2010.
At the end of the third quarter, $137.3 million of NPLs were residential CAD loans, $91.5 million were other CAD loans, $56.8 million were commercial real estate mortgage loans, $52.7 million were consumer mortgages, and NPLs from all other loan types totaled $71.1 million.
Noninterest Revenue
Noninterest revenue was $69.8 million for the third quarter of 2010, compared with $62.5 million for the third quarter of 2009 and $57.1 million for the second quarter of 2010. This growth resulted primarily from an increase in mortgage lending activity. Mortgage origination volume was $490 million for the third quarter of 2010 and gross mortgage lending revenue was $13.5 million. This was offset by a $4.6 million negative MSR fair value adjustment, resulting in net mortgage lending revenue of $8.9 million for the quarter. For the third quarter of 2009, mortgage origination volume was $296 million and gross mortgage lending revenue was $4.7 million, offset by a $2.7 million negative MSR fair value adjustment, and for the second quarter of 2010, mortgage origination volume was $291 million and gross mortgage lending revenue was $6.0 million, offset by an $8.3 million negative MSR fair value adjustment.
Noninterest revenue for the third quarter of 2010 from credit and debit card fees and trust income increased on a comparable and sequential quarter basis, while insurance commission revenue increased from the comparable quarter in the previous year for the second consecutive quarter. The Company benefited from security gains of $2.3 million for the third quarter of 2010, compared with no gains or losses for the third quarter of 2009 and losses of $0.6 million for the second quarter of 2010. Service charges for the third quarter of 2010 decreased 2.2 percent from the third quarter of 2009 and 1.8 percent from the second quarter of 2010.
Noninterest Expense
Noninterest expense for the third quarter of 2010 was $123.1 million compared with $122.7 million for the third quarter of 2009 and $120.0 million for the second quarter of 2010. Included in these results, FDIC insurance expense was $4.8 million for the third quarter of 2010 compared with $3.4 million for the third quarter of 2009 and $4.4 million for the second quarter of 2010. Foreclosed property expense increased to $4.9 million for the third quarter of 2010 compared with $3.7 million for the third quarter of 2009 and $3.8 million for the second quarter of 2010.
Capital Management
BancorpSouth's commitment to a strong capital base is one of its fundamental strengths. The Company's equity capitalization is 100 percent common stock. This strong capital base has enabled BancorpSouth to forego participating in the Capital Purchase Program under TARP or raising new capital since the economic recession began. BancorpSouth's ratio of shareholders' equity to assets was 9.10 percent at September 30, 2010, compared with 9.69 percent at September 30, 2009. The ratio of tangible equity to tangible assets was 7.11 percent at September 30, 2010, compared with 7.64 percent at September 30, 2009. BancorpSouth remains a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 10.56 percent at September 30, 2010 and total risk based capital of 11.82 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, to be classified as "well capitalized."
Summary
Patterson concluded, "Although we continued to deal with difficult credit issues during the third quarter of 2010, we are encouraged by the operating improvement indicated by the growth in our pre-tax, pre-provision income. The long-term development of our noninterest revenue businesses was specifically designed to diversify our revenue, thereby reducing our exposure to the risks inherent in our interest rate spread dependent business.
"We have accomplished a tremendous amount, both in the third quarter and throughout 2010 as we work through our credit issues. Through the process of determining current real estate valuations for collaterally dependent loans, we have charged certain loans down, or established specific reserves at levels that appropriately reflect these valuations. As a result of this progress, we believe we can continue to manage our credit issues effectively.
"As we look forward, we remain cautious about the slow pace of economic growth, high unemployment and weak loan demand. In this environment, we intend to continue building the value of our retail banking franchise through outstanding customer service and comprehensive products and services. Based on our strong capital, diversified revenues and markets, customer-focused business model and conservative culture, we are confident of our ability to overcome our current challenges and re-establish BancorpSouth on a path of long-term growth and increased shareholder value."
Conference Call
BancorpSouth will conduct a conference call to discuss its third quarter 2010 results tomorrow, October 26, 2010, at 10:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com. A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.
Forward-Looking Statements
Certain statements contained in this news release may not be based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "may," "might," "will," "would," "could" or "intend." These forward-looking statements include, without limitation, statements relating to our reserve for losses, our credit issues, the value of our retail banking franchise, our ability to overcome current challenges 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 soundness of other financial institutions, levels of market volatility, the availability of capital if the Company elects or is compelled to seek additional capital, liquidity risk, the credit risk associated with real estate construction, acquisition and development loans, estimates of costs and values associated with real estate construction, acquisition and development loans in the Company's loan portfolio, the adequacy of the Company's allowance for credit losses to cover actual credit losses, governmental regulation and supervision of the Company's operations, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, the impact of hurricanes or other adverse weather events, risks in connection with completed or potential acquisitions, dilution caused by the Company's issuance of any additional shares of its common stock to acquire other banks, bank holding companies, financial holding companies and insurance agencies, restrictions on the Company's ability to declare and pay dividends, the Company's growth strategy, diversification in the types of financial services the Company offers, competition with other financial services companies, interruptions or breaches in security of the Company's information systems, the Company's ability to improve its internal controls adequately, any requirement that the Company write down goodwill or other intangible assets, other factors generally understood to affect the financial results of financial services companies, and other factors described from time to time in BancorpSouth's filings with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.6 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 312 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas. BancorpSouth Bank also operates an insurance location in Illinois.
BancorpSouth, Inc. |
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Selected Financial Data |
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Three Months Ended |
Nine Months Ended |
|||||||
September 30, |
September 30, |
|||||||
2010 |
2009 |
2010 |
2009 |
|||||
(Dollars in thousands, except per share amounts) |
||||||||
Earnings Summary: |
||||||||
Net interest revenue |
$109,678 |
$111,736 |
$330,889 |
$332,552 |
||||
Provision for credit losses |
54,850 |
22,514 |
160,723 |
55,053 |
||||
Noninterest revenue |
69,752 |
62,475 |
190,170 |
210,771 |
||||
Noninterest expense |
123,087 |
122,672 |
363,586 |
366,656 |
||||
Income (loss) before income taxes |
1,493 |
29,025 |
(3,250) |
121,614 |
||||
Income tax provision (benefit) |
(9,767) |
7,494 |
(10,346) |
36,739 |
||||
Net income |
$11,260 |
$21,531 |
$7,096 |
$84,875 |
||||
Earning per share: Basic |
$0.13 |
$0.26 |
$0.09 |
$1.02 |
||||
Diluted |
$0.13 |
$0.26 |
$0.08 |
$1.02 |
||||
Balance sheet data at September 30: |
||||||||
Total assets |
$13,583,016 |
$13,271,873 |
||||||
Total earning assets |
12,450,699 |
12,094,937 |
||||||
Loans and leases, net of unearned income |
9,514,929 |
9,757,944 |
||||||
Allowance for credit losses |
205,081 |
144,791 |
||||||
Total deposits |
11,196,864 |
10,297,034 |
||||||
Common shareholders' equity |
1,235,705 |
1,286,218 |
||||||
Book value per share |
14.80 |
15.41 |
||||||
Average balance sheet data: |
||||||||
Total assets |
$13,304,882 |
$13,167,057 |
$13,219,171 |
$13,250,329 |
||||
Total earning assets |
12,266,426 |
12,027,909 |
12,127,291 |
12,116,158 |
||||
Loans and leases, net of unearned interest |
9,601,142 |
9,750,159 |
9,689,886 |
9,729,050 |
||||
Total deposits |
11,177,626 |
10,200,211 |
11,044,948 |
10,057,028 |
||||
Common shareholders' equity |
1,229,146 |
1,265,099 |
1,246,647 |
1,251,769 |
||||
Non-performing assets at September 30: |
||||||||
Non-accrual loans and leases |
$347,181 |
$82,732 |
||||||
Loans and leases 90+ days past due, still accruing |
9,910 |
20,699 |
||||||
Restructured loans and leases, still accruing |
52,325 |
8,205 |
||||||
Other real estate owned |
82,647 |
62,072 |
||||||
Total non-performing assets |
492,063 |
173,708 |
||||||
Net charge-offs as a percentage |
||||||||
of average loans (annualized) |
2.10% |
0.68% |
1.81% |
0.59% |
||||
Performance ratios (annualized): |
||||||||
Return on average assets |
0.34% |
0.65% |
0.07% |
0.86% |
||||
Return on common equity |
3.63% |
6.75% |
0.76% |
9.07% |
||||
Total shareholders' equity to total assets |
9.10% |
9.69% |
9.10% |
9.69% |
||||
Tangible shareholders' equity to tangible assets |
7.11% |
7.64% |
7.11% |
7.64% |
||||
Net interest margin |
3.64% |
3.77% |
3.74% |
3.75% |
||||
Average shares outstanding - basic |
83,432,535 |
83,368,580 |
83,421,821 |
83,260,911 |
||||
Average shares outstanding - diluted |
83,473,138 |
83,512,826 |
83,529,579 |
83,398,142 |
||||
Cash dividends per share |
$0.22 |
$0.22 |
$0.66 |
$0.66 |
||||
Tier I capital |
10.56% |
11.39% |
10.56% |
11.39% |
||||
Total Capital |
11.82% |
12.64% |
11.82% |
12.64% |
||||
Tier I leverage capital |
8.26% |
9.03% |
8.26% |
9.03% |
||||
BancorpSouth, Inc. |
||||||
Consolidated Balance Sheets |
||||||
(Unaudited) |
||||||
Sep-10 |
Jun-10 |
Mar-10 |
Dec-09 |
Sep-09 |
||
(Dollars in thousands) |
||||||
Assets |
||||||
Cash and due from banks |
$128,160 |
$370,499 |
$187,115 |
$222,741 |
$189,103 |
|
Interest bearing deposits with other banks |
211,189 |
111,040 |
9,943 |
15,704 |
43,067 |
|
Held-to-maturity securities, at amortized cost |
1,357,888 |
1,147,157 |
1,219,983 |
1,032,822 |
1,180,716 |
|
Available-for-sale securities, at fair value |
915,877 |
962,692 |
891,221 |
960,772 |
958,158 |
|
Federal funds sold and securities |
||||||
purchased under agreement to resell |
325,000 |
75,000 |
120,000 |
75,000 |
75,000 |
|
Loans and leases |
9,556,962 |
9,691,623 |
9,756,081 |
9,822,986 |
9,803,235 |
|
Less: Unearned income |
42,033 |
44,721 |
45,259 |
47,850 |
45,291 |
|
Allowance for credit losses |
205,081 |
200,744 |
188,884 |
176,043 |
144,791 |
|
Net loans and leases |
9,309,848 |
9,446,158 |
9,521,938 |
9,599,093 |
9,613,153 |
|
Loans held for sale |
125,815 |
95,987 |
80,312 |
80,343 |
80,053 |
|
Premises and equipment, net |
335,618 |
336,645 |
339,860 |
343,877 |
346,931 |
|
Accrued interest receivable |
63,797 |
63,862 |
69,022 |
68,651 |
74,589 |
|
Goodwill |
270,097 |
270,097 |
270,097 |
270,097 |
270,097 |
|
Bank owned life insurance |
192,459 |
190,828 |
189,022 |
187,770 |
189,043 |
|
Other assets |
347,268 |
351,039 |
331,677 |
310,997 |
251,963 |
|
Total Assets |
$13,583,016 |
$13,421,004 |
$13,230,190 |
$13,167,867 |
$13,271,873 |
|
Liabilities |
||||||
Deposits: |
||||||
Demand: Noninterest bearing |
$1,967,635 |
$1,897,977 |
$1,860,579 |
$1,901,663 |
$1,769,432 |
|
Interest bearing |
4,623,103 |
4,725,457 |
4,589,029 |
4,323,646 |
4,055,395 |
|
Savings |
801,153 |
770,112 |
768,302 |
725,192 |
712,446 |
|
Other time |
3,804,973 |
3,827,095 |
3,776,251 |
3,727,201 |
3,759,761 |
|
Total deposits |
11,196,864 |
11,220,641 |
10,994,161 |
10,677,702 |
10,297,034 |
|
Federal funds purchased and |
||||||
securities sold under agreement |
||||||
to repurchase |
501,175 |
481,109 |
480,795 |
539,870 |
816,374 |
|
Short-term Federal Home Loan Bank borrowings |
||||||
and other short-term borrowing |
152,738 |
3,500 |
2,500 |
203,500 |
200,000 |
|
Accrued interest payable |
16,574 |
17,508 |
17,972 |
19,588 |
24,243 |
|
Junior subordinated debt securities |
160,312 |
160,312 |
160,312 |
160,312 |
160,312 |
|
Long-term Federal Home Loan Bank borrowings |
110,000 |
110,749 |
112,760 |
112,771 |
286,281 |
|
Other liabilities |
209,648 |
186,926 |
196,806 |
177,828 |
201,411 |
|
Total Liabilities |
12,347,311 |
12,180,745 |
11,965,306 |
11,891,571 |
11,985,655 |
|
Shareholders' Equity |
||||||
Common stock |
208,704 |
208,704 |
208,655 |
208,626 |
208,615 |
|
Capital surplus |
224,170 |
223,922 |
223,307 |
222,547 |
222,135 |
|
Accumulated other comprehensive income (loss) |
(2,705) |
(5,008) |
(10,645) |
(8,409) |
(18,568) |
|
Retained earnings |
805,536 |
812,641 |
843,567 |
853,532 |
874,036 |
|
Total Shareholders' Equity |
1,235,705 |
1,240,259 |
1,264,884 |
1,276,296 |
1,286,218 |
|
Total Liabilities & Shareholders' Equity |
$13,583,016 |
$13,421,004 |
$13,230,190 |
$13,167,867 |
$13,271,873 |
|
BancorpSouth, Inc. |
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Consolidated Condensed Statements of Income |
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(Dollars in thousands, except per share data) |
||||||||||||||
(Unaudited) |
||||||||||||||
Quarter Ended |
Year To Date |
|||||||||||||
Sep-10 |
Jun-10 |
Mar-10 |
Dec-09 |
Sep-09 |
Sep-10 |
Sep-09 |
||||||||
INTEREST REVENUE: |
||||||||||||||
Loans and leases |
$ 123,533 |
$ 124,621 |
$ 126,956 |
$ 129,086 |
$ 129,455 |
$ 375,110 |
$ 387,927 |
|||||||
Deposits with other banks |
79 |
33 |
21 |
19 |
20 |
133 |
112 |
|||||||
Federal funds sold and securities purchased |
||||||||||||||
under agreement to resell |
213 |
143 |
82 |
43 |
27 |
438 |
31 |
|||||||
Held-to-maturity securities: |
||||||||||||||
Taxable |
9,010 |
9,363 |
9,415 |
10,128 |
11,690 |
27,788 |
36,829 |
|||||||
Tax-exempt |
2,584 |
2,412 |
2,461 |
2,393 |
2,193 |
7,457 |
6,459 |
|||||||
Available-for-sale securities: |
||||||||||||||
Taxable |
7,782 |
8,030 |
8,385 |
8,675 |
8,592 |
24,197 |
26,351 |
|||||||
Tax-exempt |
795 |
833 |
832 |
875 |
812 |
2,460 |
2,521 |
|||||||
Loans held for sale |
889 |
727 |
506 |
777 |
698 |
2,122 |
3,188 |
|||||||
Total interest revenue |
144,885 |
146,162 |
148,658 |
151,996 |
153,487 |
439,705 |
463,418 |
|||||||
INTEREST EXPENSE: |
||||||||||||||
Interest bearing demand |
8,582 |
9,751 |
9,392 |
9,023 |
9,038 |
27,725 |
31,024 |
|||||||
Savings |
881 |
915 |
889 |
900 |
937 |
2,685 |
2,800 |
|||||||
Other time |
21,108 |
21,535 |
21,529 |
23,445 |
25,534 |
64,172 |
77,863 |
|||||||
Federal funds purchased and securities sold |
||||||||||||||
under agreement to repurchase |
209 |
215 |
228 |
305 |
331 |
652 |
1,324 |
|||||||
FHLB borrowings |
1,543 |
1,553 |
1,880 |
3,012 |
2,877 |
4,976 |
8,585 |
|||||||
Junior subordinated debt |
2,880 |
2,862 |
2,855 |
2,863 |
2,884 |
8,597 |
8,767 |
|||||||
Other |
4 |
2 |
3 |
101 |
150 |
9 |
503 |
|||||||
Total interest expense |
35,207 |
36,833 |
36,776 |
39,649 |
41,751 |
108,816 |
130,866 |
|||||||
Net interest revenue |
109,678 |
109,329 |
111,882 |
112,347 |
111,736 |
330,889 |
332,552 |
|||||||
Provision for credit losses |
54,850 |
62,354 |
43,519 |
62,271 |
22,514 |
160,723 |
55,053 |
|||||||
Net interest revenue, after provision for |
||||||||||||||
credit losses |
54,828 |
46,975 |
68,363 |
50,076 |
89,222 |
170,166 |
277,499 |
|||||||
NONINTEREST REVENUE: |
||||||||||||||
Mortgage lending |
8,898 |
(2,304) |
5,025 |
8,602 |
2,012 |
11,619 |
23,623 |
|||||||
Credit card, debit card and merchant fees |
9,569 |
9,333 |
8,810 |
7,883 |
8,902 |
27,712 |
26,361 |
|||||||
Service charges |
18,621 |
18,953 |
16,262 |
18,689 |
19,049 |
53,836 |
54,175 |
|||||||
Trust income |
2,783 |
2,707 |
2,587 |
3,014 |
2,435 |
8,077 |
6,684 |
|||||||
Security gains (losses), net |
2,327 |
(585) |
1,297 |
(102) |
- |
3,039 |
47 |
|||||||
Insurance commissions |
20,825 |
21,666 |
21,668 |
17,583 |
20,134 |
64,159 |
63,354 |
|||||||
Other |
6,729 |
7,316 |
7,683 |
8,836 |
9,943 |
21,728 |
36,527 |
|||||||
Total noninterest revenue |
69,752 |
57,086 |
63,332 |
64,505 |
62,475 |
190,170 |
210,771 |
|||||||
NONINTEREST EXPENSES: |
||||||||||||||
Salaries and employee benefits |
68,232 |
68,189 |
69,287 |
66,926 |
70,353 |
205,708 |
211,808 |
|||||||
Occupancy, net of rental income |
11,038 |
10,527 |
10,775 |
10,897 |
10,720 |
32,340 |
31,211 |
|||||||
Equipment |
5,523 |
5,877 |
5,739 |
5,578 |
5,853 |
17,139 |
17,930 |
|||||||
Deposit insurance assessments |
4,752 |
4,362 |
4,250 |
3,786 |
3,402 |
13,364 |
15,886 |
|||||||
Other |
33,542 |
31,061 |
30,432 |
36,174 |
32,344 |
95,035 |
89,821 |
|||||||
Total noninterest expenses |
123,087 |
120,016 |
120,483 |
123,361 |
122,672 |
363,586 |
366,656 |
|||||||
Income (loss) before income taxes |
1,493 |
(15,955) |
11,212 |
(8,780) |
29,025 |
(3,250) |
121,614 |
|||||||
Income tax expense (benefit) |
(9,767) |
(3,395) |
2,816 |
(6,634) |
7,494 |
(10,346) |
36,739 |
|||||||
Net income (loss) |
$11,260 |
($12,560) |
$8,396 |
($2,146) |
$ 21,531 |
$7,096 |
$ 84,875 |
|||||||
Net income (loss) per share: Basic |
$0.13 |
($0.15) |
$0.10 |
($0.03) |
$0.26 |
$0.09 |
$1.02 |
|||||||
Diluted |
$0.13 |
($0.15) |
$0.10 |
($0.03) |
$0.26 |
$0.08 |
$1.02 |
|||||||
BancorpSouth, Inc. |
||||||||||
Selected Loan Data |
||||||||||
(Dollars in thousands) |
||||||||||
(Unaudited) |
||||||||||
Quarter Ended |
||||||||||
Sep-10 |
Jun-10 |
Mar-10 |
Dec-09 |
Sep-09 |
||||||
LOAN AND LEASE PORTFOLIO: |
||||||||||
Commercial and industrial |
$ 1,438,415 |
$ 1,483,335 |
$ 1,470,145 |
$ 1,466,569 |
$ 1,442,344 |
|||||
Real estate |
||||||||||
Consumer mortgages |
2,001,077 |
2,019,187 |
2,014,085 |
2,017,067 |
2,046,433 |
|||||
Home equity |
552,095 |
555,281 |
549,924 |
550,085 |
540,875 |
|||||
Agricultural |
262,083 |
260,489 |
266,649 |
262,069 |
254,647 |
|||||
Commercial and industrial-owner occupied |
1,375,466 |
1,407,704 |
1,423,098 |
1,449,554 |
1,432,859 |
|||||
Construction, acquisition and development |
1,307,242 |
1,381,591 |
1,428,882 |
1,459,503 |
1,533,622 |
|||||
Commercial |
1,810,626 |
1,794,644 |
1,809,660 |
1,806,766 |
1,770,066 |
|||||
Credit cards |
102,672 |
102,784 |
101,464 |
108,086 |
103,208 |
|||||
All other |
665,253 |
641,888 |
646,915 |
655,437 |
633,890 |
|||||
Total loans |
$9,514,929 |
$9,646,903 |
$9,710,822 |
$9,775,136 |
$9,757,944 |
|||||
ALLOWANCE FOR CREDIT LOSSES: |
||||||||||
Balance, beginning of period |
$ 200,744 |
$ 188,884 |
$ 176,043 |
$ 144,791 |
$ 138,746 |
|||||
Loans and leases charged off: |
||||||||||
Commercial and industrial |
(2,822) |
(5,106) |
(2,169) |
(3,404) |
(3,913) |
|||||
Real estate |
||||||||||
Consumer mortgages |
(7,573) |
(4,659) |
(4,598) |
(2,298) |
(2,669) |
|||||
Home equity |
(1,792) |
(602) |
(1,683) |
(1,835) |
(1,278) |
|||||
Agricultural |
(33) |
(473) |
(207) |
(401) |
(407) |
|||||
Commercial and industrial-owner occupied |
(1,231) |
(3,845) |
(2,465) |
(753) |
(1,795) |
|||||
Construction, acquisition and development |
(34,342) |
(31,655) |
(15,769) |
(20,766) |
(3,160) |
|||||
Commercial |
(2,887) |
(2,593) |
(2,278) |
(568) |
(2,135) |
|||||
Credit cards |
(1,046) |
(1,363) |
(1,160) |
(1,118) |
(1,204) |
|||||
All other |
(798) |
(2,067) |
(1,050) |
(954) |
(938) |
|||||
Total loans charged off |
(52,524) |
(52,363) |
(31,379) |
(32,097) |
(17,499) |
|||||
Recoveries: |
||||||||||
Commercial and industrial |
318 |
242 |
63 |
194 |
320 |
|||||
Real estate |
||||||||||
Consumer mortgages |
143 |
818 |
64 |
209 |
132 |
|||||
Home equity |
23 |
43 |
52 |
76 |
28 |
|||||
Agricultural |
8 |
- |
- |
- |
- |
|||||
Commercial and industrial-owner occupied |
154 |
44 |
7 |
10 |
31 |
|||||
Construction, acquisition and development |
663 |
211 |
56 |
7 |
31 |
|||||
Commercial |
98 |
27 |
12 |
25 |
108 |
|||||
Credit cards |
317 |
219 |
150 |
216 |
123 |
|||||
All other |
287 |
265 |
297 |
341 |
257 |
|||||
Total recoveries |
2,011 |
1,869 |
701 |
1,078 |
1,030 |
|||||
Net charge-offs |
(50,513) |
(50,494) |
(30,678) |
(31,019) |
(16,469) |
|||||
Provision charged to operating expense |
54,850 |
62,354 |
43,519 |
62,271 |
22,514 |
|||||
Other, net |
- |
- |
- |
- |
- |
|||||
Balance, end of period |
$ 205,081 |
$ 200,744 |
$ 188,884 |
$ 176,043 |
$ 144,791 |
|||||
Average loans for period |
$ 9,601,142 |
$ 9,703,253 |
$ 9,767,088 |
$ 9,750,989 |
$ 9,750,159 |
|||||
Ratios: |
||||||||||
Net charge-offs to average loans (annualized) |
2.10% |
2.08% |
1.26% |
1.27% |
0.68% |
|||||
BancorpSouth, Inc. |
||||||||||
Selected Loan Data |
||||||||||
(Dollars in thousands) |
||||||||||
(Unaudited) |
||||||||||
Quarter Ended |
||||||||||
Sep-10 |
Jun-10 |
Mar-10 |
Dec-09 |
Sep-09 |
||||||
NON-PERFORMING ASSETS |
||||||||||
NON-PERFORMING LOANS AND LEASES: |
||||||||||
Nonaccrual Loans and Leases |
||||||||||
Commercial and industrial |
$ 12,339 |
$ 6,280 |
$ 6,306 |
$ 4,852 |
$ 7,048 |
|||||
Real estate |
||||||||||
Consumer mortgages |
40,962 |
37,514 |
24,047 |
20,731 |
12,433 |
|||||
Home equity |
1,361 |
1,565 |
761 |
1,642 |
1,879 |
|||||
Agricultural |
4,986 |
3,972 |
3,049 |
1,136 |
2,647 |
|||||
Commercial and industrial-owner occupied |
15,004 |
12,061 |
15,083 |
7,039 |
5,044 |
|||||
Construction, acquisition and development |
216,586 |
159,829 |
116,191 |
82,170 |
39,989 |
|||||
Commercial |
51,590 |
38,921 |
30,094 |
23,209 |
12,228 |
|||||
Credit cards |
724 |
726 |
1,072 |
1,044 |
850 |
|||||
All other |
3,629 |
2,890 |
3,034 |
2,190 |
614 |
|||||
Total nonaccrual loans and leases |
347,181 |
263,758 |
199,637 |
144,013 |
82,732 |
|||||
Loans and Leases 90+ Days Past Due, Still Accruing: |
||||||||||
Commercial and industrial |
1,571 |
7,093 |
1,405 |
1,797 |
1,062 |
|||||
Real estate |
||||||||||
Consumer mortgages |
6,241 |
4,754 |
10,984 |
9,905 |
14,189 |
|||||
Home equity |
146 |
- |
320 |
810 |
707 |
|||||
Agricultural |
330 |
- |
199 |
1,015 |
289 |
|||||
Commercial and industrial-owner occupied |
192 |
733 |
1,482 |
4,511 |
1,342 |
|||||
Construction, acquisition and development |
526 |
1,490 |
3,339 |
13,482 |
1,477 |
|||||
Commercial |
115 |
3,068 |
1,671 |
2,558 |
305 |
|||||
Credit cards |
396 |
228 |
296 |
355 |
373 |
|||||
All other |
393 |
330 |
756 |
1,868 |
955 |
|||||
Total loans and leases 90+ past due, still accruing |
9,910 |
17,696 |
20,452 |
36,301 |
20,699 |
|||||
Restructured Loans and Leases, Still Accruing |
52,325 |
20,813 |
15,576 |
6,161 |
8,205 |
|||||
Total non-performing loans and leases |
409,416 |
302,267 |
235,665 |
186,475 |
111,636 |
|||||
OTHER REAL ESTATE OWNED: |
82,647 |
67,560 |
59,269 |
59,265 |
62,072 |
|||||
Total Non-performing Assets |
$ 492,063 |
$ 369,827 |
$ 294,934 |
$ 245,740 |
$ 173,708 |
|||||
Loans and Leases 30-89 Days Past Due, Still Accruing: |
||||||||||
Commercial and industrial |
$ 10,581 |
$ 10,081 |
$ 17,248 |
$ 7,220 |
$ 7,391 |
|||||
Real estate |
||||||||||
Consumer mortgages |
22,490 |
30,286 |
22,917 |
24,263 |
21,802 |
|||||
Home equity |
3,088 |
2,664 |
2,568 |
2,000 |
2,068 |
|||||
Agricultural |
1,101 |
2,312 |
3,814 |
1,010 |
838 |
|||||
Commercial and industrial-owner occupied |
16,385 |
20,975 |
21,798 |
29,186 |
7,286 |
|||||
Construction, acquisition and development |
11,538 |
50,759 |
58,385 |
39,795 |
7,753 |
|||||
Commercial |
4,657 |
8,084 |
11,627 |
5,623 |
12,246 |
|||||
Credit cards |
799 |
1,220 |
1,185 |
1,457 |
1,566 |
|||||
All other |
3,143 |
4,472 |
3,240 |
3,061 |
3,758 |
|||||
Total Loans and Leases 30-89 days past due, still accruing |
$ 73,782 |
$ 130,853 |
$ 142,782 |
$ 113,615 |
$ 64,708 |
|||||
Credit Quality Ratios: |
||||||||||
Provision for credit losses to average loans and leases (annualized) |
2.29% |
2.57% |
1.78% |
2.55% |
0.92% |
|||||
Allowance for credit losses to net loans and leases |
2.16% |
2.08% |
1.95% |
1.80% |
1.48% |
|||||
Allowance for credit losses to non-performing assets |
41.68% |
54.28% |
64.04% |
71.64% |
83.35% |
|||||
Allowance for credit losses to non-performing loans and leases |
50.09% |
66.41% |
80.15% |
94.41% |
129.70% |
|||||
Non-performing loans and leases to net loans and leases |
4.30% |
3.13% |
2.43% |
1.91% |
1.14% |
|||||
Non-performing assets to net loans and leases |
5.17% |
3.83% |
3.04% |
2.51% |
1.77% |
|||||
BancorpSouth, Inc. |
||||||||||
Selected Loan Data |
||||||||||
(Dollars in thousands) |
||||||||||
(Unaudited) |
||||||||||
Quarter Ended |
||||||||||
Sep-10 |
Jun-10 |
Mar-10 |
Dec-09 |
Sep-09 |
||||||
REAL ESTATE CONSTRUCTION, ACQUISITION |
||||||||||
Outstanding Balance |
||||||||||
Multi-family construction |
$ 28,540 |
$ 22,091 |
$ 28,598 |
$ 25,009 |
$ 28,371 |
|||||
One-to-four family construction |
210,861 |
229,629 |
242,209 |
255,026 |
284,466 |
|||||
Recreation and all other loans |
45,085 |
44,175 |
39,938 |
50,122 |
47,065 |
|||||
Commercial construction |
239,099 |
245,700 |
236,111 |
240,917 |
279,215 |
|||||
Commercial acquisition and development |
260,787 |
270,413 |
280,630 |
282,766 |
272,772 |
|||||
Residential acquisition and development |
522,870 |
569,583 |
601,396 |
605,663 |
621,733 |
|||||
Total outstanding balance |
$ 1,307,242 |
$ 1,381,591 |
$ 1,428,882 |
$ 1,459,503 |
$ 1,533,622 |
|||||
Nonaccrual CAD Loans |
||||||||||
Multi-family construction |
$ 10,668 |
$ 11,705 |
$ 9,071 |
$ 9,247 |
$ - |
|||||
One-to-four family construction |
12,075 |
6,117 |
4,223 |
1,514 |
6,489 |
|||||
Recreation and all other loans |
1,020 |
685 |
- |
- |
- |
|||||
Commercial construction |
28,712 |
24,723 |
12,650 |
6,684 |
- |
|||||
Commercial acquisition and development |
34,438 |
15,558 |
463 |
2,527 |
4,304 |
|||||
Residential acquisition and development |
129,673 |
101,041 |
89,783 |
62,198 |
29,196 |
|||||
Total nonaccrual CAD loans |
216,586 |
159,829 |
116,190 |
82,170 |
39,989 |
|||||
CAD Loans 90+ Days Past Due, Still Accruing: |
||||||||||
Multi-family construction |
- |
- |
- |
- |
- |
|||||
One-to-four family construction |
- |
365 |
748 |
1,535 |
249 |
|||||
Recreation and all other loans |
- |
- |
146 |
496 |
- |
|||||
Commercial construction |
- |
141 |
16 |
- |
- |
|||||
Commercial acquisition and development |
150 |
77 |
678 |
4,500 |
83 |
|||||
Residential acquisition and development |
376 |
907 |
1,751 |
6,951 |
1,145 |
|||||
Total CAD loans 90+ past due, still accruing |
526 |
1,490 |
3,339 |
13,482 |
1,477 |
|||||
Restructured CAD Loans, Still Accruing |
||||||||||
Multi-family construction |
- |
- |
- |
- |
- |
|||||
One-to-four family construction |
417 |
1,072 |
- |
- |
953 |
|||||
Recreation and all other loans |
- |
- |
- |
- |
- |
|||||
Commercial construction |
2,244 |
- |
- |
1,606 |
- |
|||||
Commercial acquisition and development |
1,735 |
460 |
- |
- |
- |
|||||
Residential acquisition and development |
7,290 |
946 |
3,234 |
- |
3,338 |
|||||
Total restructured CAD loans, still accruing |
11,686 |
2,478 |
3,234 |
1,606 |
4,291 |
|||||
Total Non-performing CAD loans |
$ 228,798 |
$ 163,797 |
$ 122,763 |
$ 97,258 |
$ 45,757 |
|||||
CAD NPL as a % of Outstanding CAD Balance |
||||||||||
Multi-family construction |
37.4% |
53.0% |
31.7% |
37.0% |
- % |
|||||
One-to-four family construction |
5.9% |
3.3% |
2.1% |
1.2% |
2.7% |
|||||
Recreation and all other loans |
2.3% |
1.6% |
0.4% |
1.0% |
- % |
|||||
Commercial construction |
12.9% |
10.1% |
5.4% |
3.4% |
- % |
|||||
Commercial acquisition and development |
13.9% |
6.0% |
0.4% |
2.5% |
1.6% |
|||||
Residential acquisition and development |
26.3% |
18.1% |
15.8% |
11.4% |
5.4% |
|||||
Total CAD NPL as a % of outstanding CAD balance |
17.5% |
11.9% |
8.6% |
6.7% |
3.0% |
|||||
BancorpSouth, Inc. |
||||||||||
Selected Loan Data |
||||||||||
(Dollars in thousands) |
||||||||||
(Unaudited) |
||||||||||
As of |
||||||||||
Sep-10 |
Jun-10 |
Mar-10 |
Dec-09 |
Sep-09 |
||||||
Unpaid principal balance of impaired loans |
$ 311,941 |
$ 243,221 |
$ 209,288 |
$ 161,631 |
$ 57,670 |
|||||
Cumulative charge offs on impaired loans |
69,783 |
54,930 |
37,989 |
33,094 |
12,976 |
|||||
Outstanding balance of impaired loans |
242,158 |
188,291 |
171,299 |
128,537 |
44,694 |
|||||
Other non-accrual loans and leases not impaired |
105,023 |
75,467 |
28,338 |
15,476 |
38,038 |
|||||
Total non-accrual loans and leases |
$ 347,181 |
$ 263,758 |
$ 199,637 |
$ 144,013 |
$ 82,732 |
|||||
Allowance for impaired loans |
43,584 |
40,721 |
30,855 |
22,747 |
5,876 |
|||||
Nonaccrual loans and leases, net of specific reserves |
$ 303,597 |
$ 223,037 |
$ 168,782 |
$ 121,266 |
$ 76,856 |
|||||
Loans and leases 90+ past due, still accruing |
9,910 |
17,696 |
20,452 |
36,301 |
20,699 |
|||||
Restructured loans and leases, still accruing |
52,325 |
20,813 |
15,576 |
6,161 |
8,205 |
|||||
Total non-performing loans and leases |
$ 409,416 |
$ 302,267 |
$ 235,665 |
$ 186,475 |
$ 111,636 |
|||||
Allowance for impaired loans |
43,584 |
40,721 |
30,855 |
22,747 |
5,876 |
|||||
Allowance for all other loans and leases |
161,497 |
160,053 |
158,029 |
153,296 |
138,915 |
|||||
Total Allowance for Credit Losses |
$ 205,081 |
$ 200,774 |
$ 188,884 |
$ 176,043 |
$ 144,791 |
|||||
Outstanding balance of impaired loans |
$ 242,158 |
$ 188,291 |
$ 171,299 |
$ 128,537 |
$ 44,694 |
|||||
Allowance for impaired loans |
43,584 |
40,721 |
30,855 |
22,747 |
5,876 |
|||||
Net book value of impaired loans |
$ 198,574 |
$ 147,570 |
$ 140,444 |
$ 105,790 |
$ 38,818 |
|||||
Net book value of impaired loans as a % |
||||||||||
of unpaid principal balance |
64% |
61% |
67% |
65% |
67% |
|||||
Coverage of other non-accrual loans and leases not impaired by |
||||||||||
the allowance for all other loans and leases |
154% |
212% |
558% |
991% |
365% |
|||||
Coverage of non-performing loans and leases not impaired |
||||||||||
by the allowance for all other loans and leases |
97% |
140% |
246% |
265% |
208% |
|||||
BancorpSouth, Inc. |
||||||||||
Noninterest Revenue and Expense |
||||||||||
(Dollars in thousands) |
||||||||||
(Unaudited) |
||||||||||
Quarter Ended |
||||||||||
Sep-10 |
Jun-10 |
Mar-10 |
Dec-09 |
Sep-09 |
||||||
NONINTEREST REVENUE: |
||||||||||
Mortgage lending |
$ 8,898 |
$ (2,304) |
$ 5,025 |
$ 8,602 |
$ 2,012 |
|||||
Credit card, debit card and merchant fees |
9,569 |
9,333 |
8,810 |
7,883 |
8,902 |
|||||
Service charges |
18,621 |
18,953 |
16,262 |
18,689 |
19,049 |
|||||
Trust income |
2,783 |
2,707 |
2,587 |
3,014 |
2,435 |
|||||
Securities gains (losses), net |
2,327 |
(585) |
1,297 |
(102) |
- |
|||||
Insurance commissions |
20,825 |
21,666 |
21,668 |
17,583 |
20,134 |
|||||
Annuity fees |
537 |
698 |
781 |
1,060 |
572 |
|||||
Brokerage commissions and fees |
1,340 |
1,419 |
1,317 |
1,390 |
1,349 |
|||||
Bank-owned life insurance |
1,793 |
1,972 |
1,669 |
1,843 |
3,222 |
|||||
Other miscellaneous income |
3,059 |
3,227 |
3,916 |
4,543 |
4,800 |
|||||
Total noninterest revenue |
$ 69,752 |
$ 57,086 |
$ 63,332 |
$ 64,505 |
$ 62,475 |
|||||
NONINTEREST EXPENSE: |
||||||||||
Salaries and employee benefits |
$ 68,232 |
$ 68,189 |
$ 69,287 |
$ 66,926 |
$ 70,353 |
|||||
Occupancy, net |
11,038 |
10,527 |
10,775 |
10,897 |
10,720 |
|||||
Equipment |
5,523 |
5,877 |
5,739 |
5,578 |
5,853 |
|||||
Deposit insurance assessments |
4,752 |
4,362 |
4,250 |
3,786 |
3,402 |
|||||
Advertising |
1,742 |
1,196 |
656 |
1,120 |
3,197 |
|||||
Foreclosed property expense |
4,912 |
3,813 |
3,538 |
6,292 |
3,692 |
|||||
Telecommunications |
2,624 |
2,494 |
2,200 |
2,203 |
2,219 |
|||||
Public relations |
1,423 |
1,656 |
1,648 |
1,304 |
1,467 |
|||||
Data processing |
1,576 |
1,594 |
1,470 |
1,360 |
1,542 |
|||||
Computer software |
1,793 |
1,900 |
1,704 |
1,759 |
1,782 |
|||||
Amortization of intangibles |
961 |
984 |
1,015 |
1,139 |
1,195 |
|||||
Legal fees |
1,727 |
1,313 |
1,328 |
1,885 |
1,570 |
|||||
Postage and shipping |
1,237 |
1,178 |
1,360 |
1,254 |
1,216 |
|||||
Other miscellaneous expense |
15,547 |
14,933 |
15,513 |
17,858 |
14,464 |
|||||
Total noninterest expense |
$ 123,087 |
$ 120,016 |
$ 120,483 |
$ 123,361 |
$ 122,672 |
|||||
BancorpSouth, Inc. |
|||||
Average Balances, Interest Income and Expense, |
|||||
and Average Yields and Rates |
|||||
(Dollars in thousands) |
|||||
(Unaudited) |
|||||
Quarter Ended |
|||||
September 30, 2010 |
|||||
Average |
Yield/ |
||||
(Taxable equivalent basis) |
Balance |
Interest |
Rate |
||
ASSETS |
|||||
Loans, loans held for sale, |
|||||
and leases net of unearned income |
$ 9,682,146 |
$ 125,211 |
5.13% |
||
Held-to-maturity securities: |
|||||
Taxable |
993,494 |
9,119 |
3.64% |
||
Tax-exempt |
230,182 |
3,975 |
6.85% |
||
Available-for-sale securities: |
|||||
Taxable |
847,942 |
7,782 |
3.64% |
||
Tax-exempt |
69,735 |
1,225 |
6.97% |
||
Short-term investments |
442,927 |
292 |
0.26% |
||
Total interest earning |
|||||
assets and revenue |
12,266,426 |
147,604 |
4.77% |
||
Other assets |
1,265,657 |
||||
Less: allowance for credit losses |
(227,201) |
||||
Total |
$ 13,304,882 |
||||
LIABILITIES AND |
|||||
SHAREHOLDERS' EQUITY |
|||||
Deposits: |
|||||
Demand - interest bearing |
$ 4,651,166 |
$ 8,582 |
0.73% |
||
Savings |
786,267 |
881 |
0.44% |
||
Other time |
3,829,068 |
21,108 |
2.19% |
||
Short-term borrowings |
483,651 |
257 |
0.21% |
||
Junior subordinated debt |
160,312 |
2,880 |
7.13% |
||
Long-term debt |
110,734 |
1,499 |
5.37% |
||
Total interest bearing |
|||||
liabilities and expense |
10,021,198 |
35,207 |
1.39% |
||
Demand deposits - |
|||||
noninterest bearing |
1,911,125 |
||||
Other liabilities |
143,413 |
||||
Total liabilities |
12,075,736 |
||||
Shareholders' equity |
1,229,146 |
||||
Total |
$ 13,304,882 |
||||
Net interest revenue |
$ 112,397 |
||||
Net interest margin |
3.64% |
||||
Net interest rate spread |
3.38% |
||||
Interest bearing liabilities to |
|||||
interest earning assets |
81.70% |
||||
Net interest tax equivalent adjustment |
$ 2,719 |
||||
BancorpSouth, Inc. |
|||||
Average Balances, Interest Income and Expense, |
|||||
and Average Yields and Rates |
|||||
(Dollars in thousands) |
|||||
(Unaudited) |
|||||
Quarter Ended |
|||||
June 30, 2010 |
|||||
Average |
Yield/ |
||||
(Taxable equivalent basis) |
Balance |
Interest |
Rate |
||
ASSETS |
|||||
Loans, loans held for sale, |
|||||
and leases net of unearned income |
$ 9,763,448 |
$ 126,131 |
5.18% |
||
Held-to-maturity securities: |
|||||
Taxable |
939,046 |
9,474 |
4.05% |
||
Tax-exempt |
218,747 |
3,711 |
6.80% |
||
Available-for-sale securities: |
|||||
Taxable |
821,050 |
8,029 |
3.92% |
||
Tax-exempt |
72,440 |
1,281 |
7.09% |
||
Short-term investments |
295,618 |
176 |
0.24% |
||
Total interest earning |
|||||
assets and revenue |
12,110,349 |
148,802 |
4.93% |
||
Other assets |
1,329,535 |
||||
Less: allowance for credit losses |
(216,378) |
||||
Total |
$ 13,223,506 |
||||
LIABILITIES AND |
|||||
SHAREHOLDERS' EQUITY |
|||||
Deposits: |
|||||
Demand - interest bearing |
$ 4,635,078 |
$ 9,750 |
0.84% |
||
Savings |
770,665 |
915 |
0.48% |
||
Other time |
3,814,314 |
21,536 |
2.26% |
||
Short-term borrowings |
486,350 |
264 |
0.22% |
||
Junior subordinated debt |
160,312 |
2,861 |
7.16% |
||
Long-term debt |
112,731 |
1,506 |
5.36% |
||
Total interest bearing |
|||||
liabilities and expense |
9,979,450 |
36,832 |
1.48% |
||
Demand deposits - |
|||||
noninterest bearing |
1,855,598 |
||||
Other liabilities |
142,672 |
||||
Total liabilities |
11,977,720 |
||||
Shareholders' equity |
1,245,786 |
||||
Total |
$ 13,223,506 |
||||
Net interest revenue |
$ 111,970 |
||||
Net interest margin |
3.71% |
||||
Net interest rate spread |
3.45% |
||||
Interest bearing liabilities to |
|||||
interest earning assets |
82.40% |
||||
Net interest tax equivalent adjustment |
$ 2,640 |
||||
BancorpSouth, Inc. |
|||||
Average Balances, Interest Income and Expense, |
|||||
and Average Yields and Rates |
|||||
(Dollars in thousands) |
|||||
(Unaudited) |
|||||
Quarter Ended |
|||||
March 31, 2010 |
|||||
Average |
Yield/ |
||||
(Taxable equivalent basis) |
Balance |
Interest |
Rate |
||
ASSETS |
|||||
Loans, loans held for sale, |
|||||
and leases net of unearned income |
$ 9,809,884 |
$ 128,299 |
5.30% |
||
Held-to-maturity securities: |
|||||
Taxable |
851,525 |
9,525 |
4.54% |
||
Tax-exempt |
215,250 |
3,786 |
7.13% |
||
Available-for-sale securities: |
|||||
Taxable |
859,757 |
8,386 |
3.96% |
||
Tax-exempt |
72,396 |
1,279 |
7.16% |
||
Short-term investments |
170,734 |
103 |
0.24% |
||
Total interest earning |
|||||
assets and revenue |
11,979,546 |
151,378 |
5.12% |
||
Other assets |
1,340,608 |
||||
Less: allowance for credit losses |
(192,983) |
||||
Total |
$ 13,127,171 |
||||
LIABILITIES AND |
|||||
SHAREHOLDERS' EQUITY |
|||||
Deposits: |
|||||
Demand - interest bearing |
$ 4,568,045 |
$ 9,392 |
0.83% |
||
Savings |
748,342 |
889 |
0.48% |
||
Other time |
3,741,938 |
21,529 |
2.33% |
||
Short-term borrowings |
564,191 |
587 |
0.42% |
||
Junior subordinated debt |
160,312 |
2,855 |
7.22% |
||
Long-term debt |
112,764 |
1,524 |
5.48% |
||
Total interest bearing |
|||||
liabilities and expense |
9,895,592 |
36,776 |
1.51% |
||
Demand deposits - |
|||||
noninterest bearing |
1,819,945 |
||||
Other liabilities |
146,225 |
||||
Total liabilities |
11,861,762 |
||||
Shareholders' equity |
1,265,409 |
||||
Total |
$ 13,127,171 |
||||
Net interest revenue |
$ 114,602 |
||||
Net interest margin |
3.88% |
||||
Net interest rate spread |
3.62% |
||||
Interest bearing liabilities to |
|||||
interest earning assets |
82.60% |
||||
Net interest tax equivalent adjustment |
$ 2,720 |
||||
BancorpSouth, Inc. |
|||||
Average Balances, Interest Income and Expense, |
|||||
and Average Yields and Rates |
|||||
(Dollars in thousands) |
|||||
(Unaudited) |
|||||
Quarter Ended |
|||||
December 31, 2009 |
|||||
Average |
Yield/ |
||||
(Taxable equivalent basis) |
Balance |
Interest |
Rate |
||
ASSETS |
|||||
Loans, loans held for sale, |
|||||
and leases net of unearned income |
$ 9,821,066 |
$ 130,671 |
5.28% |
||
Held-to-maturity securities: |
|||||
Taxable |
878,452 |
10,239 |
4.62% |
||
Tax-exempt |
209,242 |
3,682 |
6.98% |
||
Available-for-sale securities: |
|||||
Taxable |
892,191 |
8,676 |
3.86% |
||
Tax-exempt |
72,902 |
1,344 |
7.31% |
||
Short-term investments |
92,651 |
61 |
0.26% |
||
Total interest earning |
|||||
assets and revenue |
11,966,504 |
154,673 |
5.13% |
||
Other assets |
1,267,510 |
||||
Less: allowance for credit losses |
(168,842) |
||||
Total |
$ 13,065,172 |
||||
LIABILITIES AND |
|||||
SHAREHOLDERS' EQUITY |
|||||
Deposits: |
|||||
Demand - interest bearing |
$ 4,155,330 |
$ 9,023 |
0.86% |
||
Savings |
717,630 |
900 |
0.50% |
||
Other time |
3,748,894 |
23,445 |
2.48% |
||
Short-term borrowings |
713,972 |
405 |
0.23% |
||
Junior subordinated debt |
160,312 |
2,865 |
7.09% |
||
Long-term debt |
303,301 |
3,011 |
3.94% |
||
Total interest bearing |
|||||
liabilities and expense |
9,799,439 |
39,649 |
1.61% |
||
Demand deposits - |
|||||
noninterest bearing |
1,826,763 |
||||
Other liabilities |
171,981 |
||||
Total liabilities |
11,798,183 |
||||
Shareholders' equity |
1,266,989 |
||||
Total |
$ 13,065,172 |
||||
Net interest revenue |
$ 115,024 |
||||
Net interest margin |
3.81% |
||||
Net interest rate spread |
3.52% |
||||
Interest bearing liabilities to |
|||||
interest earning assets |
81.89% |
||||
Net interest tax equivalent adjustment |
$ 2,677 |
||||
BancorpSouth, Inc. |
|||||
Average Balances, Interest Income and Expense, |
|||||
and Average Yields and Rates |
|||||
(Dollars in thousands) |
|||||
(Unaudited) |
|||||
Quarter Ended |
|||||
September 30, 2009 |
|||||
Average |
Yield/ |
||||
(Taxable equivalent basis) |
Balance |
Interest |
Rate |
||
ASSETS |
|||||
Loans, loans held for sale, |
|||||
and leases net of unearned income |
$ 9,808,427 |
$ 130,957 |
5.30% |
||
Held-to-maturity securities: |
|||||
Taxable |
998,773 |
11,799 |
4.69% |
||
Tax-exempt |
199,360 |
3,373 |
6.71% |
||
Available-for-sale securities: |
|||||
Taxable |
889,278 |
8,591 |
3.83% |
||
Tax-exempt |
69,737 |
1,251 |
7.12% |
||
Short-term investments |
62,334 |
47 |
0.30% |
||
Total interest earning |
|||||
assets and revenue |
12,027,909 |
156,020 |
5.15% |
||
Other assets |
1,285,360 |
||||
Less: allowance for credit losses |
(146,212) |
||||
Total |
$ 13,167,057 |
||||
LIABILITIES AND |
|||||
SHAREHOLDERS' EQUITY |
|||||
Deposits: |
|||||
Demand - interest bearing |
$ 4,010,281 |
$ 9,038 |
0.89% |
||
Savings |
716,155 |
936 |
0.52% |
||
Other time |
3,726,754 |
25,535 |
2.72% |
||
Short-term borrowings |
1,071,144 |
544 |
0.20% |
||
Junior subordinated debt |
160,312 |
2,884 |
7.14% |
||
Long-term debt |
286,285 |
2,814 |
3.90% |
||
Total interest bearing |
|||||
liabilities and expense |
9,970,931 |
41,751 |
1.66% |
||
Demand deposits - |
|||||
noninterest bearing |
1,747,021 |
||||
Other liabilities |
184,006 |
||||
Total liabilities |
11,901,958 |
||||
Shareholders' equity |
1,265,099 |
||||
Total |
$ 13,167,057 |
||||
Net interest revenue |
$ 114,269 |
||||
Net interest margin |
3.77% |
||||
Net interest rate spread |
3.49% |
||||
Interest bearing liabilities to |
|||||
interest earning assets |
82.90% |
||||
Net interest tax equivalent adjustment |
$ 2,533 |
||||
BancorpSouth, Inc. |
||||||||
Reconciliation of Non-GAAP Measures |
||||||||
(Dollars in thousands) |
||||||||
(Unaudited) |
||||||||
Reconciliation of Pre-tax Pre-Provision Earnings (a): |
||||||||
Quarter Ended |
||||||||
September 30, |
June 30, |
September 30, |
||||||
2010 |
2010 |
2009 |
||||||
Net income |
$ 11,260 |
$ (12,560) |
$ 21,531 |
|||||
Plus: |
Provision for credit losses |
54,850 |
62,354 |
22,514 |
||||
Income tax expense (benefit) |
(9,767) |
(3,395) |
7,494 |
|||||
Pre-tax Pre-Provision Earnings |
$ 56,343 |
$ 46,399 |
$ 51,539 |
|||||
Reconciliation of Tangible assets and Tangible Shareholders' Equity to |
|||||||
Total Assets and Total Shareholders' Equity (b): |
|||||||
September 30, |
|||||||
2010 |
2009 |
||||||
Tangible assets |
|||||||
Total assets |
$ 13,583,016 |
$ 13,271,873 |
|||||
Less: |
Goodwill |
270,097 |
270,097 |
||||
Other identifiable intangible assets |
20,573 |
24,347 |
|||||
Total tangible assets |
$ 13,292,346 |
$ 12,977,429 |
|||||
Tangible shareholders' equity |
|||||||
Total shareholders' equity |
$ 1,235,705 |
$ 1,286,218 |
|||||
Less: |
Goodwill |
270,097 |
270,097 |
||||
Other identifiable intangible assets |
20,573 |
24,347 |
|||||
Total tangible shareholders' equity |
$ 945,035 |
$ 991,774 |
|||||
Tangible shareholders' equity to tangible assets |
7.11% |
7.64% |
|||||
(a) |
BancorpSouth, Inc. utilizes pre-tax pre-provision earnings as an additional measure when evaluating the performance of the Company. Pre-tax pre-provision earnings are defined as net income plus provision for credit losses and income tax expense. Management believes pre-tax pre-provision earnings is important to investors as it shows earnings trends without giving effect to provision for credit losses and taxes. |
||||||
(b) |
BancorpSouth, Inc. utilizes tangible assets and tangible shareholders' equity measures when evaluating the performance of the Company. Tangible shareholders' equity is defined by the Company as total shareholders' equity less goodwill and other identifiable intangible assets. Tangible assets are defined by the Company as total assets less goodwill and other identifiable intangible assets. Management believes the ratio of tangible equity to tangible assets is important to investors who are interested in evaluating the adequacy of our capital levels. |
||||||
SOURCE BancorpSouth, Inc.
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