BancorpSouth Announces Earnings of $0.10 per Diluted Share for First Quarter 2010
TUPELO, Miss., April 22 /PRNewswire-FirstCall/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended March 31, 2010.
Highlights for the first quarter include:
- Profitable operations with net income of $8.4 million or $0.10 per diluted share.
- Improvement in net interest margin to 3.88 percent, the highest quarterly level since the first quarter of 2003.
- Increased net interest revenue on a comparable quarter basis (for the fourth consecutive quarter).
- Continued strong deposit growth - primarily interest bearing demand deposits - and significant reductions in short-term debt.
- A decline in noninterest expense, excluding deposit insurance assessment, on a comparable and sequential quarter basis.
- Annualized net charge-offs of 1.26 percent of average loans and leases and non-performing loans and leases of 2.43 percent of net loans and leases.
- A provision for credit losses more than 40 percent in excess of net charge-offs for the quarter, which increased the allowance for credit losses to 1.95 percent of net loans and leases.
- A strong capital structure with common equity to assets of 9.56 percent and tangible common equity to tangible assets of 7.52 percent at the end of the quarter.
Summary Results
BancorpSouth's net income for the first quarter of 2010 was $8.4 million, or $0.10 per diluted share, compared with $29.5 million, or $0.35 per diluted share, for the first quarter of 2009 and a net loss of $2.1 million, or $0.03 per diluted share, for the fourth quarter of 2009.
Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth, commented, "BancorpSouth has operated effectively in a stressful economic environment that has continued to challenge the financial services industry. As throughout 2009, our new loan production for the first quarter of 2010 essentially offset loan runoff. We experienced strong growth in deposits, especially low cost interest bearing demand deposits, and strengthened liquidity by reducing short-term debt by a significant percentage on a sequential quarter basis for the fifth consecutive quarter. We also produced our fourth comparable quarter increase in net interest revenue. Net interest margin increased to 3.88 percent, which is the fourth consecutive sequential quarter increase and the highest level achieved in seven years. While the level of mortgage refinancing slowed significantly compared with the first quarter of 2009, we continued to achieve a solid performance in our mortgage origination business with mortgage production exceeding $200 million in originations for the quarter.
"Non-performing loans and leases were $235.7 million at the end of the first quarter, an increase of $49.2 million from the fourth quarter of 2009. Included in non-performing loans and leases at the end of the first quarter are $171.3 million of loans that have been subjected to impairment testing. These impaired loans have a specific reserve of $30.8 million included in the allowance for credit losses of $188.9 million at the quarter's end. The remaining balance of non-performing loans and leases of $64.4 million represents loans and leases on non-accrual status, loans and leases 90 days or more past due and still accruing, and accruing restructured loans and leases. The balance of the allowance for credit losses not attributable to impaired loans was $158.1 million at the end of the first quarter of 2010. We are committed to remaining well-reserved against expected losses in our loan portfolio. We are encouraged by some indicators that suggest economic stabilization or mild strengthening, but we expect real estate values to remain under pressure, at least over the near term.
"First quarter operations were profitable, and the Company maintained strong capital and liquidity. We believe we are well positioned to cope with the challenges of the current environment."
Net Interest Revenue
Net interest revenue was $111.9 million for the first quarter of 2010, an increase of 1.8 percent from $109.9 million for the first quarter of 2009 and a decrease of 0.4 percent from $112.3 million for the fourth quarter of 2009. The fully taxable equivalent net interest margin increased to 3.88 percent for the first quarter of 2010 from 3.74 percent for the first quarter of 2009 and 3.81 percent for the fourth quarter of 2009.
Patterson continued, "We are pleased with the fourth consecutive increase in comparable quarter net interest revenue. With loan growth an ongoing challenge in the current environment, we continued to focus our efforts on expanding our deposit funding and reducing our short-term debt. Due primarily to 14.5 percent growth in interest bearing demand deposits at March 31, 2010 from March 31, 2009 and 6.1 percent growth from the end of 2009, deposits grew to 93.6 percent of total funding at the end of the quarter from 84.1 percent and 91.3 percent at the end of the first quarter and fourth quarter, respectively, of 2009."
Asset, Deposit and Loan Activity
Total assets at March 31, 2010 were $13.2 billion, compared with $13.5 billion at March 31, 2009. Total deposits were $11.0 billion at March 31, 2010, an increase of 8.9 percent from $10.1 billion at March 31, 2009. Loans and leases, net of unearned income, were approximately even at $9.7 billion on March 31, 2010 and March 31, 2009.
"Loan growth in the current economic environment continues to be a challenge. The banking industry, as a whole, has experienced a decline in loans for the last several quarters. We are encouraged that we have been able to maintain our volume of loans outstanding and believe that we are well positioned to capitalize on loan growth opportunities as the economy improves.
"Strong deposit growth has also reduced our reliance on short-term borrowed funds. While deposit rates generally exceed rates available for short-term borrowed funds, the current environment presents an excellent opportunity to attract new, and strengthen existing, deposit relationships."
Provision for Credit Losses and Allowance for Credit Losses
For the first quarter of 2010, the provision for credit losses was $43.5 million compared with $14.9 million for the first quarter of 2009 and $62.3 million for the fourth quarter of 2009. Annualized net charge-offs were 1.26 percent of average loans and leases for the first quarter of 2010 compared with 0.54 percent for the first quarter of 2009 and 1.27 percent for the fourth quarter of 2009.
Non-performing loans and leases increased to $235.7 million, or 2.43 percent of net loans and leases, at March 31, 2010 from $73.8 million, or 0.76 percent of net loans and leases, at March 31, 2009 and from $186.5 million, or 1.91 percent of net loans and leases, at December 31, 2009. Again, $171.3 million of this $235.7 million are impaired loans with specific reserves of $30.8 million included in the allowance for credit losses. The total allowance for credit losses increased to 1.95 percent of net loans and leases at March 31, 2010 compared with 1.39 percent at March 31, 2009 and 1.80 percent at December 31, 2009.
Patterson, added, "Through the provision for credit losses for the first quarter, we significantly increased the allowance for credit losses for the second consecutive quarter. After the slight decline in net charge-offs for the first quarter compared with the fourth quarter of 2009, reserve coverage of annualized net charge-offs moved to 1.5 times from 1.4 times for the fourth quarter of 2009. We continue to focus significant efforts on the timely identification and resolution of our troubled loans. We are committed to ensuring that we maintain adequate reserves to cover expected losses."
Noninterest Revenue
Noninterest revenue was $63.3 million for the first quarter of 2010 compared with $67.8 million for the first quarter of 2009 and $64.5 million for the fourth quarter of 2009. Changes in the valuation of BancorpSouth's mortgage servicing rights (MSR) had no significant effect on the first quarter's results. Results for the first quarter of 2010 included a gain on sale of securities of $1.3 million.
"Mortgage servicing and production income, excluding the MSR valuation adjustment, declined 45 percent from the first quarter of 2009 to $5.0 million," stated Patterson. "The decrease is attributable to a decline in mortgage originations of 51 percent to $207 million. Despite the decline against a very strong comparable quarter in 2009, we are pleased with the performance of our mortgage origination business. Given the continuation of a mortgage rate environment favorable to purchase opportunities, as well as industry turmoil related to the exit of national or regional market participants, we expect a solid performance from our mortgage business for the year.
"In addition to our mortgage origination business, we remain fully committed to the strategic value of our insurance business, which continues to confront soft market conditions. Like the mortgage business, our insurance products and services have effectively enabled BancorpSouth to serve a larger portion of the financial needs of our existing customers, while introducing a significant number of new customers to the Company on an ongoing basis. They have also been instrumental in diversifying our revenue stream, significantly lessening our interest-spread dependence.
"Our first quarter revenue from credit and debit card fees increased 5.5 percent from the first quarter of 2009 and 11.6 percent from the fourth quarter of 2009. Service charge revenue for the first quarter declined 2.9 percent and 13.0 percent from the first and fourth quarters, respectively, of 2009. We are continuing to focus on managing the potential impact of new regulations on the fee structure of these businesses."
Noninterest Expense
BancorpSouth has continued to manage its noninterest expenses well during the first quarter of 2010. Noninterest expense was $120.5 million for the first quarter, an increase of 0.4 percent from $120.0 million for the first quarter of 2009 and a decline of 2.3 percent from $123.4 million for the fourth quarter of 2009. Results again reflected an increase in BancorpSouth's FDIC assessments. Noninterest expense, excluding the FDIC premium, for the first quarter of 2010 declined 0.5 percent from the first quarter of 2009 and 2.8 percent from the fourth quarter.
Capital Management
BancorpSouth's commitment to a strong capital base is one of its fundamental operating principles. The Company's ratio of shareholders' equity to assets improved on a comparable quarter basis for the 15th consecutive quarter, increasing to 9.56 percent at March 31, 2010 from 9.33 percent at March 31, 2009. The ratio of tangible equity to tangible assets also increased to 7.52 percent at March 31, 2010 from 7.29 percent at March 31, 2009. BancorpSouth remains a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of approximately 10.89 percent at March 31, 2010 and total risk based capital of approximately 12.15 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, to meet the definition of "well capitalized."
Summary
Patterson concluded, "BancorpSouth operated soundly and profitably for the first quarter of 2010. In response to continuing economic uncertainty, we increased our allowance for credit losses, reduced debt, controlled costs and maintained strong capital levels and ample liquidity. Our revenue generation for the quarter continued the remarkable consistency demonstrated over the past two years despite the challenging economic environment.
"Based on our first quarter performance, we remain confident of the Company's ability to cope effectively with the current environment. Although we continue to see scattered indicators of economic stabilization and growth, we remain appropriately cautious about the prospects for a sustained economic recovery in 2010. Recognizing that our recent geographic expansion into attractive new markets has provided much of our new loan production, we intend to continue pursuing careful de novo expansion in attractive and familiar markets within or contiguous to our existing geographic footprint. We will also continue to evaluate industry consolidation opportunities that meet our strategic objectives, which include being accretive to our financial results."
Conference Call
BancorpSouth will conduct a conference call to discuss its first quarter 2010 results tomorrow, April 23, 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 real estate values, our ability to manage through the current environment, our ability to capitalize on loan growth opportunities, our ability to remain well-reserved against losses in our loan portfolio, performance of our mortgage business, our credit metrics and accretive industry consolidation opportunities.
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, changes in general business or economic conditions or government fiscal and monetary policies, volatility and disruption in national and international financial markets, fluctuations in prevailing interest rates and the ability of BancorpSouth to manage its assets and liabilities to limit exposure to changing interest rates, the ability of BancorpSouth to increase noninterest revenue and expand noninterest revenue business, the ability of BancorpSouth to maintain credit quality, changes in laws and regulations affecting financial service companies in general, the ability of BancorpSouth to compete with other financial services companies, the ability of BancorpSouth to provide and market competitive services and products, changes in BancorpSouth's operating or expansion strategy, BancorpSouth's business model, geographic concentration of BancorpSouth's assets, the ability of BancorpSouth to manage its growth and effectively serve an expanding customer and market base, the ability of BancorpSouth to achieve profitable growth and increase shareholder value, the ability of BancorpSouth to attract, train and retain qualified personnel, the ability of BancorpSouth to identify, close and effectively integrate potential acquisitions, the ability of BancorpSouth to expand geographically and enter growing markets, changes in consumer preferences, 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 $13.2 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 314 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. Selected Financial Data |
||||
Three Months Ended |
||||
March 31, |
||||
2010 |
2009 |
|||
(Dollars in thousands, except per share amounts) |
||||
Earnings Summary: |
||||
Net interest revenue |
$111,882 |
$109,876 |
||
Provision for credit losses |
43,519 |
14,945 |
||
Noninterest revenue |
63,332 |
67,818 |
||
Noninterest expense |
120,483 |
119,978 |
||
Income before income taxes |
11,212 |
42,771 |
||
Income tax provision |
2,816 |
13,294 |
||
Net income |
$8,396 |
$29,477 |
||
Earnings per share: Basic |
$0.10 |
$0.35 |
||
Diluted |
$0.10 |
$0.35 |
||
Balance sheet data at March 31: |
||||
Total assets |
$13,230,190 |
$13,458,364 |
||
Total earning assets |
12,032,281 |
12,240,161 |
||
Loans and leases, net of unearned income |
9,710,822 |
9,712,823 |
||
Allowance for credit losses |
188,884 |
134,632 |
||
Total deposits |
10,994,161 |
10,091,974 |
||
Common shareholders' equity |
1,264,884 |
1,255,659 |
||
Book value per share |
15.16 |
15.11 |
||
Average balance sheet data: |
||||
Total assets |
$13,127,171 |
$13,324,878 |
||
Total earning assets |
11,979,546 |
12,187,151 |
||
Loans and leases, net of unearned interest |
9,767,088 |
9,695,475 |
||
Total deposits |
10,878,270 |
9,908,432 |
||
Common shareholders' equity |
1,265,409 |
1,238,971 |
||
Non-performing assets at March 31: |
||||
Non-accrual loans and leases |
$199,637 |
$38,936 |
||
Loans and leases 90+ days past due, still accruing |
20,452 |
27,299 |
||
Restructured loans and leases, still accruing |
15,576 |
7,581 |
||
Other real estate owned |
59,269 |
47,450 |
||
Total non-performing assets |
294,934 |
121,266 |
||
Net charge-offs as a percentage |
||||
of average loans (annualized) |
1.26% |
0.54% |
||
Performance ratios (annualized): |
||||
Return on average assets |
0.26% |
0.90% |
||
Return on common equity |
2.69% |
9.65% |
||
Total shareholders' equity to total assets |
9.56% |
9.33% |
||
Tangible shareholders' equity to tangible assets |
7.52% |
7.29% |
||
Net interest margin |
3.88% |
3.74% |
||
Average shares outstanding - basic |
83,403,809 |
83,107,469 |
||
Average shares outstanding - diluted |
83,574,695 |
83,234,105 |
||
Cash dividends per share |
$0.22 |
$0.22 |
||
Tier I capital |
10.89% |
(1) |
10.23% |
|
Total Capital |
12.15% |
(1) |
12.22% |
|
Tier I leverage capital |
8.84% |
(1) |
8.18% |
|
(1) Estimated as of earnings release date |
||||
BancorpSouth, Inc. Consolidated Balance Sheets (Unaudited) |
||||||
Mar-10 |
Dec-09 |
Sep-09 |
Jun-09 |
Mar-09 |
||
(Dollars in thousands) |
||||||
Assets |
||||||
Cash and due from banks |
$187,115 |
$222,741 |
$189,103 |
$236,327 |
$242,180 |
|
Interest bearing deposits with other banks |
9,943 |
15,704 |
43,067 |
28,836 |
34,230 |
|
Held-to-maturity securities, at amortized cost |
1,219,983 |
1,032,822 |
1,180,716 |
1,204,618 |
1,330,810 |
|
Available-for-sale securities, at fair value |
891,221 |
960,772 |
958,158 |
969,207 |
993,529 |
|
Federal funds sold and securities |
||||||
purchased under agreement to resell |
120,000 |
75,000 |
75,000 |
- |
- |
|
Loans and leases |
9,756,081 |
9,822,986 |
9,803,235 |
9,806,735 |
9,759,787 |
|
Less: Unearned income |
45,259 |
47,850 |
45,291 |
45,335 |
46,964 |
|
Allowance for credit losses |
188,884 |
176,043 |
144,791 |
138,747 |
134,632 |
|
Net loans and leases |
9,521,938 |
9,599,093 |
9,613,153 |
9,622,653 |
9,578,191 |
|
Loans held for sale |
80,312 |
80,343 |
80,053 |
94,736 |
168,769 |
|
Premises and equipment, net |
339,860 |
343,877 |
346,931 |
348,661 |
348,734 |
|
Accrued interest receivable |
69,022 |
68,651 |
74,589 |
71,349 |
77,503 |
|
Goodwill |
270,097 |
270,097 |
270,097 |
270,097 |
269,062 |
|
Bank owned life insurance |
189,022 |
187,770 |
189,043 |
185,822 |
184,026 |
|
Other assets |
331,677 |
310,997 |
251,963 |
265,513 |
231,330 |
|
Total Assets |
$13,230,190 |
$13,167,867 |
13,271,873 |
13,297,819 |
13,458,364 |
|
Liabilities |
||||||
Deposits: |
||||||
Demand: Noninterest bearing |
$1,860,579 |
$1,901,663 |
1,769,432 |
1,773,418 |
1,820,807 |
|
Interest bearing |
4,589,029 |
4,323,646 |
4,055,395 |
3,960,008 |
4,005,620 |
|
Savings |
768,302 |
725,192 |
712,446 |
718,302 |
719,676 |
|
Other time |
3,776,251 |
3,727,201 |
3,759,761 |
3,705,819 |
3,545,871 |
|
Total deposits |
10,994,161 |
10,677,702 |
10,297,034 |
10,157,547 |
10,091,974 |
|
Federal funds purchased and |
||||||
securities sold under agreement |
||||||
to repurchase |
480,795 |
539,870 |
816,374 |
755,609 |
1,256,649 |
|
Short-term Federal Home Loan Bank borrowings |
||||||
and other short-term borrowing |
2,500 |
203,500 |
200,000 |
475,000 |
210,000 |
|
Accrued interest payable |
17,972 |
19,588 |
24,243 |
24,084 |
22,841 |
|
Junior subordinated debt securities |
160,312 |
160,312 |
160,312 |
160,312 |
160,312 |
|
Long-term Federal Home Loan Bank borrowings |
112,760 |
112,771 |
286,281 |
286,292 |
286,302 |
|
Other liabilities |
196,806 |
177,828 |
201,411 |
164,028 |
174,627 |
|
Total Liabilities |
11,965,306 |
11,891,571 |
11,985,655 |
12,022,872 |
12,202,705 |
|
Shareholders' Equity |
||||||
Common stock |
208,655 |
208,626 |
208,615 |
208,391 |
207,811 |
|
Capital surplus |
223,307 |
222,547 |
222,135 |
220,859 |
216,138 |
|
Accumulated other comprehensive income (loss) |
(10,645) |
(8,409) |
(18,568) |
(25,162) |
(23,620) |
|
Retained earnings |
843,567 |
853,532 |
874,036 |
870,859 |
855,330 |
|
Total Shareholders' Equity |
1,264,884 |
1,276,296 |
1,286,218 |
1,274,947 |
1,255,659 |
|
Total Liabilities & Shareholders' Equity |
$13,230,190 |
$13,167,867 |
$13,271,873 |
$13,297,819 |
$13,458,364 |
|
BancorpSouth, Inc. Consolidated Condensed Statements of Income (Dollars in thousands, except per share data) (Unaudited) |
||||||||||
Quarter Ended |
||||||||||
Mar-10 |
Dec-09 |
Sep-09 |
Jun-09 |
Mar-09 |
||||||
INTEREST REVENUE: |
||||||||||
Loans and leases |
$ 126,956 |
$ 129,086 |
$ 129,455 |
$ 129,263 |
$ 129,209 |
|||||
Deposits with other banks |
21 |
19 |
20 |
22 |
70 |
|||||
Federal funds sold and securities purchased |
||||||||||
under agreement to resell |
82 |
43 |
27 |
3 |
1 |
|||||
Held-to-maturity securities: |
||||||||||
Taxable |
9,415 |
10,128 |
11,690 |
12,108 |
13,031 |
|||||
Tax-exempt |
2,461 |
2,393 |
2,193 |
2,155 |
2,111 |
|||||
Available-for-sale securities: |
||||||||||
Taxable |
8,385 |
8,675 |
8,592 |
8,721 |
9,038 |
|||||
Tax-exempt |
832 |
875 |
812 |
826 |
883 |
|||||
Loans held for sale |
506 |
777 |
698 |
1,215 |
1,275 |
|||||
Total interest revenue |
148,658 |
151,996 |
153,487 |
154,313 |
155,618 |
|||||
INTEREST EXPENSE: |
||||||||||
Interest bearing demand |
9,392 |
9,023 |
9,038 |
9,738 |
12,248 |
|||||
Savings |
889 |
900 |
937 |
927 |
936 |
|||||
Other time |
21,529 |
23,445 |
25,534 |
26,496 |
25,833 |
|||||
Federal funds purchased and securities sold |
||||||||||
under agreement to repurchase |
228 |
305 |
331 |
421 |
572 |
|||||
FHLB borrowings |
1,880 |
3,012 |
2,877 |
2,885 |
2,823 |
|||||
Junior subordinated debt |
2,855 |
2,863 |
2,884 |
2,928 |
2,955 |
|||||
Other |
3 |
101 |
150 |
(22) |
375 |
|||||
Total interest expense |
36,776 |
39,649 |
41,751 |
43,373 |
45,742 |
|||||
Net interest revenue |
111,882 |
112,347 |
111,736 |
110,940 |
109,876 |
|||||
Provision for credit losses |
43,519 |
62,271 |
22,514 |
17,594 |
14,945 |
|||||
Net interest revenue, after provision for |
||||||||||
credit losses |
68,363 |
50,076 |
89,222 |
93,346 |
94,931 |
|||||
NONINTEREST REVENUE: |
||||||||||
Mortgage lending |
5,025 |
8,602 |
2,012 |
13,959 |
7,652 |
|||||
Credit card, debit card and merchant fees |
8,810 |
7,883 |
8,902 |
9,111 |
8,348 |
|||||
Service charges |
16,262 |
18,689 |
19,049 |
18,371 |
16,755 |
|||||
Trust income |
2,587 |
3,014 |
2,435 |
2,040 |
2,209 |
|||||
Security gains (losses), net |
1,297 |
(102) |
- |
42 |
5 |
|||||
Insurance commissions |
21,668 |
17,583 |
20,134 |
20,575 |
22,645 |
|||||
Other |
7,683 |
8,836 |
9,943 |
16,380 |
10,204 |
|||||
Total noninterest revenue |
63,332 |
64,505 |
62,475 |
80,478 |
67,818 |
|||||
NONINTEREST EXPENSES: |
||||||||||
Salaries and employee benefits |
69,287 |
66,926 |
70,353 |
70,092 |
71,363 |
|||||
Occupancy, net of rental income |
10,775 |
10,897 |
10,720 |
10,492 |
9,999 |
|||||
Equipment |
5,739 |
5,578 |
5,853 |
5,855 |
6,222 |
|||||
Deposit insurance assessments |
4,250 |
3,786 |
3,402 |
9,358 |
3,126 |
|||||
Other |
30,432 |
36,174 |
32,344 |
28,209 |
29,268 |
|||||
Total noninterest expenses |
120,483 |
123,361 |
122,672 |
124,006 |
119,978 |
|||||
Income (loss) before income taxes |
11,212 |
(8,780) |
29,025 |
49,818 |
42,771 |
|||||
Income tax expense (benefit) |
2,816 |
(6,634) |
7,494 |
15,951 |
13,294 |
|||||
Net income (loss) |
$8,396 |
($2,146) |
$ 21,531 |
$ 33,867 |
$ 29,477 |
|||||
Net income (loss) per share: Basic |
$0.10 |
($0.03) |
$0.26 |
$0.41 |
$0.35 |
|||||
Diluted |
$0.10 |
($0.03) |
$0.26 |
$0.41 |
$0.35 |
|||||
BancorpSouth, Inc. Selected Loan Data (Dollars in thousands) (Unaudited) |
||||||||||
Quarter Ended |
||||||||||
Mar-10 |
Dec-09 |
Sep-09 |
Jun-09 |
Mar-09 |
||||||
LOAN AND LEASE PORTFOLIO: |
||||||||||
Commercial and industrial |
$ 1,470,145 |
$ 1,466,569 |
$ 1,442,344 |
$ 1,441,718 |
$ 1,390,042 |
|||||
Real estate |
||||||||||
Consumer mortgages |
2,014,085 |
2,017,067 |
2,046,433 |
2,054,666 |
2,037,439 |
|||||
Home equity |
549,924 |
550,085 |
540,875 |
532,337 |
519,528 |
|||||
Agricultural |
266,649 |
262,069 |
254,647 |
242,034 |
238,466 |
|||||
Commercial and industrial-owner occupied |
1,423,098 |
1,449,554 |
1,432,859 |
1,394,852 |
1,455,422 |
|||||
Construction, acquisition and development |
1,428,882 |
1,459,503 |
1,533,622 |
1,652,052 |
1,692,526 |
|||||
Commercial |
1,809,660 |
1,806,766 |
1,770,066 |
1,719,044 |
1,660,211 |
|||||
Credit cards |
101,464 |
108,086 |
103,208 |
101,844 |
98,450 |
|||||
All other |
646,915 |
655,437 |
633,890 |
622,853 |
620,739 |
|||||
Total loans |
$9,710,822 |
$9,775,136 |
$9,757,944 |
$9,761,400 |
$9,712,823 |
|||||
ALLOWANCE FOR CREDIT LOSSES: |
||||||||||
Balance, beginning of period |
$ 176,043 |
$ 144,791 |
$ 138,746 |
$ 134,632 |
$ 132,793 |
|||||
Loans and leases charged off: |
||||||||||
Commercial and industrial |
(2,169) |
(3,404) |
(3,913) |
(1,070) |
(1,147) |
|||||
Real estate |
||||||||||
Consumer mortgages |
(4,598) |
(2,298) |
(2,669) |
(4,877) |
(4,073) |
|||||
Home equity |
(1,683) |
(1,835) |
(1,278) |
(1,106) |
(1,153) |
|||||
Agricultural |
(207) |
(401) |
(407) |
(3) |
(37) |
|||||
Commercial and industrial-owner occupied |
(2,465) |
(753) |
(1,795) |
(649) |
(836) |
|||||
Construction, acquisition and development |
(15,769) |
(20,766) |
(3,160) |
(4,335) |
(4,377) |
|||||
Commercial |
(2,278) |
(568) |
(2,135) |
(321) |
(560) |
|||||
Credit cards |
(1,160) |
(1,118) |
(1,204) |
(1,290) |
(1,158) |
|||||
All other |
(1,050) |
(954) |
(938) |
(815) |
(810) |
|||||
Total loans charged off |
(31,379) |
(32,097) |
(17,499) |
(14,466) |
(14,151) |
|||||
Recoveries: |
||||||||||
Commercial and industrial |
63 |
194 |
320 |
68 |
179 |
|||||
Real estate |
||||||||||
Consumer mortgages |
64 |
209 |
132 |
263 |
220 |
|||||
Home equity |
52 |
76 |
28 |
2 |
3 |
|||||
Agricultural |
- |
- |
- |
- |
2 |
|||||
Commercial and industrial-owner occupied |
7 |
10 |
31 |
248 |
8 |
|||||
Construction, acquisition and development |
56 |
7 |
31 |
4 |
86 |
|||||
Commercial |
12 |
25 |
108 |
- |
56 |
|||||
Credit cards |
150 |
216 |
123 |
140 |
138 |
|||||
All other |
297 |
341 |
257 |
261 |
353 |
|||||
Total recoveries |
701 |
1,078 |
1,030 |
986 |
1,045 |
|||||
Net charge-offs |
(30,678) |
(31,019) |
(16,469) |
(13,480) |
(13,106) |
|||||
Provision charged to operating expense |
43,519 |
62,271 |
22,514 |
17,594 |
14,945 |
|||||
Other, net |
- |
- |
- |
- |
- |
|||||
Balance, end of period |
$ 188,884 |
$ 176,043 |
$ 144,791 |
$ 138,746 |
$ 134,632 |
|||||
Average loans for period |
$ 9,767,088 |
$ 9,750,989 |
$ 9,750,159 |
$ 9,740,916 |
$ 9,695,475 |
|||||
Ratios: |
||||||||||
Net charge-offs to average loans (annualized) |
1.26% |
1.27% |
0.68% |
0.55% |
0.54% |
|||||
BancorpSouth, Inc. Selected Loan Data (Dollars in thousands) (Unaudited) |
||||||||||
Quarter Ended |
||||||||||
Mar-10 |
Dec-09 |
Sep-09 |
Jun-09 |
Mar-09 |
||||||
NON-PERFORMING ASSETS |
||||||||||
NON-PERFORMING LOANS AND LEASES: |
||||||||||
Nonaccrual Loans and Leases |
||||||||||
Commercial and industrial |
$ 6,306 |
$ 4,852 |
$ 7,048 |
$ 7,364 |
$ 5,523 |
|||||
Real estate |
||||||||||
Consumer mortgages |
24,047 |
20,731 |
12,433 |
9,946 |
8,398 |
|||||
Home equity |
761 |
1,642 |
1,879 |
596 |
100 |
|||||
Agricultural |
3,049 |
1,136 |
2,647 |
970 |
673 |
|||||
Commercial and industrial-owner occupied |
15,083 |
7,039 |
5,044 |
2,631 |
4,153 |
|||||
Construction, acquisition and development |
116,191 |
82,170 |
39,989 |
21,742 |
17,984 |
|||||
Commercial |
30,094 |
23,209 |
12,228 |
1,023 |
925 |
|||||
Credit cards |
1,072 |
1,044 |
850 |
816 |
939 |
|||||
All other |
3,034 |
2,190 |
614 |
454 |
241 |
|||||
Total nonaccrual loans and leases |
199,637 |
144,013 |
82,732 |
45,542 |
38,936 |
|||||
Loans and Leases 90+ Days Past Due, Still Accruing: |
||||||||||
Commercial and industrial |
1,405 |
1,797 |
1,062 |
1,919 |
1,489 |
|||||
Real estate |
||||||||||
Consumer mortgages |
10,984 |
9,905 |
14,189 |
9,961 |
7,110 |
|||||
Home equity |
320 |
810 |
707 |
1,651 |
1,375 |
|||||
Agricultural |
199 |
1,015 |
289 |
3,292 |
421 |
|||||
Commercial and industrial-owner occupied |
1,482 |
4,511 |
1,342 |
4,253 |
2,982 |
|||||
Construction, acquisition and development |
3,339 |
13,482 |
1,477 |
18,648 |
11,372 |
|||||
Commercial |
1,671 |
2,558 |
305 |
2,351 |
1,021 |
|||||
Credit cards |
296 |
355 |
373 |
476 |
391 |
|||||
All other |
756 |
1,868 |
955 |
1,315 |
1,138 |
|||||
Total loans and leases 90+ past due, still accruing |
20,452 |
36,301 |
20,699 |
43,866 |
27,299 |
|||||
Restructured Loans and Leases, Still Accruing |
15,576 |
6,161 |
8,205 |
8,264 |
7,581 |
|||||
Total non-performing loans and leases |
235,665 |
186,475 |
111,636 |
97,672 |
73,816 |
|||||
OTHER REAL ESTATE OWNED: |
59,269 |
59,265 |
62,072 |
51,477 |
47,450 |
|||||
Total Non-performing Assets |
$ 294,934 |
$ 245,740 |
$ 173,708 |
$ 149,149 |
$ 121,266 |
|||||
Credit Quality Ratios: |
||||||||||
Provision for credit losses to average loans and leases (annualized) |
1.78% |
2.55% |
0.92% |
0.72% |
0.62% |
|||||
Allowance for credit losses to net loans and leases |
1.95% |
1.80% |
1.48% |
1.42% |
1.39% |
|||||
Allowance for credit losses to non-performing assets |
64.04% |
71.64% |
83.35% |
93.03% |
111.02% |
|||||
Allowance for credit losses to non-performing loans and leases |
80.15% |
94.41% |
129.70% |
142.05% |
182.39% |
|||||
Non-performing loans and leases to net loans and leases |
2.43% |
1.91% |
1.14% |
1.00% |
0.76% |
|||||
Non-performing assets to net loans and leases |
3.04% |
2.51% |
1.77% |
1.53% |
1.25% |
|||||
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. Average Balances, Interest Income and Expense, and Average Yields and Rates (Dollars in thousands) (Unaudited) |
|||||
Quarter Ended |
|||||
June 30, 2009 |
|||||
Average |
Yield/ |
||||
(Taxable equivalent basis) |
Balance |
Interest |
Rate |
||
ASSETS |
|||||
Loans, loans held for sale, |
|||||
and leases net of unearned income |
$ 9,896,890 |
$ 131,313 |
5.32% |
||
Held-to-maturity securities: |
|||||
Taxable |
1,040,896 |
12,218 |
4.71% |
||
Tax-exempt |
186,473 |
3,316 |
7.13% |
||
Available-for-sale securities: |
|||||
Taxable |
919,217 |
8,721 |
3.81% |
||
Tax-exempt |
69,960 |
1,270 |
7.28% |
||
Short-term investments |
21,727 |
25 |
0.47% |
||
Total interest earning |
|||||
assets and revenue |
12,135,163 |
156,863 |
5.18% |
||
Other assets |
1,270,193 |
||||
Less: allowance for credit losses |
(144,570) |
||||
Total |
$ 13,260,786 |
||||
LIABILITIES AND |
|||||
SHAREHOLDERS' EQUITY |
|||||
Deposits: |
|||||
Demand - interest bearing |
$ 3,948,759 |
$ 9,738 |
0.99% |
||
Savings |
719,281 |
928 |
0.52% |
||
Other time |
3,634,336 |
26,496 |
2.92% |
||
Short-term borrowings |
1,340,244 |
470 |
0.14% |
||
Junior subordinated debt |
160,312 |
2,928 |
7.33% |
||
Long-term debt |
286,294 |
2,813 |
3.94% |
||
Total interest bearing |
|||||
liabilities and expense |
10,089,226 |
43,373 |
1.72% |
||
Demand deposits - |
|||||
noninterest bearing |
1,756,861 |
||||
Other liabilities |
163,749 |
||||
Total liabilities |
12,009,836 |
||||
Shareholders' equity |
1,250,950 |
||||
Total |
$ 13,260,786 |
||||
Net interest revenue |
$ 113,490 |
||||
Net interest margin |
3.75% |
||||
Net interest rate spread |
3.46% |
||||
Interest bearing liabilities to |
|||||
interest earning assets |
83.14% |
||||
Net interest tax equivalent adjustment |
$ 2,550 |
||||
BancorpSouth, Inc. Average Balances, Interest Income and Expense, and Average Yields and Rates (Dollars in thousands) (Unaudited) |
|||||
Quarter Ended |
|||||
March 31, 2009 |
|||||
Average |
Yield/ |
||||
(Taxable equivalent basis) |
Balance |
Interest |
Rate |
||
ASSETS |
|||||
Loans, loans held for sale, |
|||||
and leases net of unearned income |
$ 9,873,692 |
$ 131,339 |
5.39% |
||
Held-to-maturity securities: |
|||||
Taxable |
1,146,772 |
13,141 |
4.65% |
||
Tax-exempt |
182,051 |
3,247 |
7.23% |
||
Available-for-sale securities: |
|||||
Taxable |
891,699 |
9,038 |
4.11% |
||
Tax-exempt |
73,814 |
1,358 |
7.46% |
||
Short-term investments |
19,123 |
71 |
1.51% |
||
Total interest earning |
|||||
assets and revenue |
12,187,151 |
158,194 |
5.26% |
||
Other assets |
1,277,538 |
||||
Less: allowance for credit losses |
(139,811) |
||||
Total |
$ 13,324,878 |
||||
LIABILITIES AND |
|||||
SHAREHOLDERS' EQUITY |
|||||
Deposits: |
|||||
Demand - interest bearing |
$ 4,090,821 |
$ 12,248 |
1.21% |
||
Savings |
697,639 |
936 |
0.54% |
||
Other time |
3,419,180 |
25,833 |
3.06% |
||
Short-term borrowings |
1,588,229 |
959 |
0.24% |
||
Junior subordinated debt |
160,312 |
2,955 |
7.48% |
||
Long-term debt |
286,306 |
2,811 |
3.98% |
||
Total interest bearing |
|||||
liabilities and expense |
10,242,487 |
45,742 |
1.81% |
||
Demand deposits - |
|||||
noninterest bearing |
1,700,792 |
||||
Other liabilities |
142,628 |
||||
Total liabilities |
12,085,907 |
||||
Shareholders' equity |
1,238,971 |
||||
Total |
$ 13,324,878 |
||||
Net interest revenue |
$ 112,452 |
||||
Net interest margin |
3.74% |
||||
Net interest rate spread |
3.45% |
||||
Interest bearing liabilities to |
|||||
interest earning assets |
84.04% |
||||
Net interest tax equivalent adjustment |
$ 2,576 |
||||
BancorpSouth, Inc. Reconciliation of Tangible assets and Tangible Shareholders' Equity to Total Assets and Total Shareholders' Equity (Dollars in thousands) (Unaudited) |
|||||
March 31, |
|||||
2010 |
2009 |
||||
Tangible Assets (a): |
|||||
Total assets |
$ 13,230,190 |
$ 13,458,364 |
|||
Less: |
Goodwill |
270,097 |
269,062 |
||
Other identifiable intangible assets |
22,517 |
26,805 |
|||
Total tangible assets |
$ 12,937,576 |
$ 13,162,497 |
|||
Tangible Shareholders' Equity(a): |
|||||
Total shareholders' equity |
$ 1,264,884 |
$ 1,255,659 |
|||
Less: |
Goodwill |
270,097 |
269,062 |
||
Other identifiable intangible assets |
22,517 |
26,805 |
|||
Total tangible shareholders' equity |
$ 972,270 |
$ 959,792 |
|||
Tangible shareholders' equity to tangible assets |
7.52% |
7.29% |
|||
(a) |
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. The Company believes the ratio of tangible equity to tangible assets to be an important measure of financial strength of the Company. |
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SOURCE BancorpSouth, Inc.
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