BancorpSouth Announces Fourth Quarter 2013 Earnings of $27.7 Million or $0.29 per Diluted Share

Jan 22, 2014, 17:00 ET from BancorpSouth, Inc.

TUPELO, Miss., Jan. 22, 2014 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and year ended December 31, 2013.

          Highlights for the fourth quarter of 2013 included:

  • Net income of $27.7 million or $0.29 per diluted share.
  • Acquired Houston, Texas based Gem Insurance Agencies, LP ("GEM"), which is expected to produce annual insurance commission revenues of approximately $9 million.
  • Generated net loan growth of $184.9 million, or 8.4 percent annualized, which represents the third consecutive quarter of net loan growth.
  • The net interest margin increased to 3.52 percent for the fourth quarter of 2013 from 3.45 percent for the third quarter of 2013, benefitting from continued reduced funding costs as well as net loan growth.
  • Non-performing loans and leases ("NPLs") declined $23.9 million, or 16.6 percent, compared to the third quarter of 2013, while non-performing assets ("NPAs") decreased $31.4 million, or 14.2 percent, over the same period.

The Company reported net income of $27.7 million, or $0.29 per diluted share, for the fourth quarter of 2013 compared with net income of $17.0 million, or $0.18 per diluted share, for the fourth quarter of 2012 and net income of $24.9 million, or $0.26 per diluted share, for the third quarter of 2013.  Additionally, the Company reported total net income of $94.1 million, or $0.99 per diluted share, for the year ended December 31, 2013 compared to $84.3 million, or $0.90 per diluted share, for the year ended December 31, 2012.   

"Our results for the fourth quarter are reflective of the commitment that we have made to grow our Company," remarked Dan Rollins, Chief Executive Officer.  "We are pleased to report net loan growth of almost $185 million, or 8.4 percent on an annualized basis.  This accomplishment is attributable to the hard work and efforts of our lending team.  While we have continued to produce quality credits throughout the cycle, these efforts are becoming more visible as the headwind caused by problem asset runoff continues to subside.  These efforts contributed to improvement in our net interest margin for the quarter, which improved to 3.52 percent from 3.45 percent for the third quarter, as well as growth in net interest income."   

"We are also excited about the opportunity that the transaction with GEM provides for us to be able to continue to expand our insurance operations, particularly in a high-growth market like Houston, Texas," commented Rollins.  "GEM produces insurance commission revenues of approximately $9 million annually and, combined with our legacy Houston operation, should provide a solid foundation for us to be able to continue to grow in that market."    

Rollins added, "Our financial performance continues to benefit from consistent credit quality improvement."  Earnings for the quarter reflected no recorded provision for credit losses, which was a decrease from $6.0 million for the fourth quarter of 2012 and $0.5 million for the third quarter of 2013.  NPLs declined $23.9 million, or 16.6 percent, during the fourth quarter of 2013 to $120.4 million at December 31, 2013 compared with $144.3 million at September 30, 2013 and declined $113.1 million, or 48.5 percent, from $233.6 million at December 31, 2012.  In addition, total NPAs declined $31.4 million, or 14.2 percent, to $189.7 million at December 31, 2013 compared with $221.2 million at September 30, 2013 and declined $147.1 million, or 43.7 percent, from $336.8 million at December 31, 2012.  Net charge-offs were $0.7 million for the fourth quarter of 2013 compared with $7.6 million for the third quarter of 2013 and $10.6 million for the fourth quarter of 2012.

Net Interest Revenue

Net interest revenue was $102.4 million for the fourth quarter of 2013, an increase of 1.5 percent from $100.9 million for the fourth quarter of 2012 and an increase of 2.2 percent from $100.2 million for the third quarter of 2013.  The fully taxable equivalent net interest margin was 3.52 percent for the fourth quarter of 2013 compared to 3.44 percent for the fourth quarter of 2012 and 3.45 percent for the third quarter of 2013.  Yields on loans and leases declined to 4.52 percent for the fourth quarter of 2013 compared with 4.76 percent for the fourth quarter of 2012 and 4.55 percent for the third quarter of 2013, while yields on total interest earning assets decreased to 3.86 percent for the fourth quarter of 2013 compared with 3.97 percent for the fourth quarter of 2012 and increased from 3.85 percent for the third quarter of 2013.  The average cost of deposits declined to 0.34 percent for the fourth quarter of 2013 from 0.47 percent for the fourth quarter of 2012 and 0.36 percent for the third quarter of 2013.

Asset, Deposit and Loan Activity

Total assets were $13.0 billion at December 31, 2013 compared with $13.4 billion at December 31, 2012.  Total deposits were $10.8 billion at December 31, 2013 compared with $11.1 billion at December 31, 2012.  Loans and leases, net of unearned income, were $9.0 billion at December 31, 2013 compared with $8.6 billion at December 31, 2012. 

The decrease in time deposits of $285.0 million, or 11.0 percent, at December 31, 2013 compared to December 31, 2012 was partially offset by growth in noninterest bearing demand deposits, which increased $99.4 million, or 3.9 percent, over the same period.  Additionally, savings deposits increased $88.3 million, or 7.7 percent, while interest bearing demand deposits declined $217.0 million, or 4.5 percent, over the same period.  As of December 31, 2013, $870.9 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.90 percent. 

Provision for Credit Losses and Allowance for Credit Losses

For the fourth quarter of 2013, no provision for credit losses was recorded, compared with $6.0 million for the fourth quarter of 2012 and $0.5 million for the third quarter of 2013.  Net charge-offs for the fourth quarter of 2013 were $0.7 million, compared with $10.6 million for the fourth quarter of 2012 and $7.6 million for the third quarter of 2013.  Recoveries of previously charged-off loans were $7.6 million for the fourth quarter of 2013, compared with $9.2 million for the fourth quarter of 2012 and $4.3 million for the third quarter of 2013.  Annualized net charge-offs were 0.03 percent of average loans and leases for the fourth quarter of 2013, compared with 0.49 percent for the fourth quarter of 2012 and 0.35 percent for the third quarter of 2013. 

NPLs were $120.4 million, or 1.34 percent of net loans and leases, at December 31, 2013, compared with $233.6 million, or 2.70 percent of net loans and leases, at December 31, 2012, and $144.3 million, or 1.65 percent of net loans and leases, at September 30, 2013.  The allowance for credit losses was $153.2 million, or 1.71 percent of net loans and leases, at December 31, 2013 compared with $164.5 million, or 1.90 percent of net loans and leases, at December 31, 2012 and $154.0 million, or 1.76 percent of net loans and leases, at September 30, 2013. 

NPLs at December 31, 2013 consisted primarily of $92.2 million of nonaccrual loans, compared with $121.4 million of nonaccrual loans at September 30, 2013.  Payments received on nonaccrual loans during the fourth quarter of 2013 totaled $25.3 million, compared with payments received on such loans of $27.7 million during the third quarter of 2013.  NPLs at December 31, 2013 also included $1.2 million of loans 90 days or more past due and still accruing, compared with $1.5 million of such loans at September 30, 2013, and included restructured loans still accruing of $27.0 million at December 31, 2013, compared with $21.5 million of such loans at September 30, 2013.  Early stage past due loans, representing loans 30-89 days past due, totaled $33.8 million at December 31, 2013 compared to $28.9 million at September 30, 2013.  

Included in nonaccrual loans at December 31, 2013 were $48.1 million of loans, or 52.2 percent of total nonaccrual loans, that were paying as agreed, compared with $61.5 million, or 50.6 percent of total nonaccrual loans, at September 30, 2013.  These loans were generally placed on nonaccrual status because the collateral values were less than the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or would be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values.  Such loans are generally deemed to be impaired, with a specific reserve established for the difference in the balance owed and the disposition value of the collateral.

Other real estate owned ("OREO") decreased $7.5 million to $69.3 million during the fourth quarter of 2013 from $76.9 million at September 30, 2013.  This net decrease reflected $7.9 million of OREO added through foreclosure, offset by sales of OREO of $14.3 million.  Write-downs in the value of existing properties were $1.1 million for the fourth quarter of 2013 compared to $1.8 million for the third quarter of 2013.  Sales of OREO during the fourth quarter of 2013 resulted in a net loss of $0.9 million compared to a net loss of $0.4 million for the third quarter of 2013.  At December 31, 2013, OREO was carried at 43.6 percent of the aggregate loan balances at the time of foreclosure, compared with 45.6 percent at September 30, 2013.

Noninterest Revenue

Noninterest revenue was $65.1 million for the fourth quarter of 2013, compared with $70.9 million for the fourth quarter of 2012 and $62.5 million for the third quarter of 2013.  These results included a positive mortgage servicing rights ("MSR") valuation adjustment of $2.9 million for the fourth quarter of 2013 compared with a positive MSR valuation adjustment of $0.2 million for the fourth quarter of 2012 and a negative MSR valuation adjustment of $0.2 million for the third quarter of 2013. 

Excluding the MSR valuation adjustments, net mortgage lending revenue was $6.7 million for the fourth quarter of 2013, compared with $17.0 million for the fourth quarter of 2012 and $5.4 million for the third quarter of 2013.  Mortgage origination volume for the fourth quarter of 2013 was $222.3 million, compared with $549.4 million for the fourth quarter of 2012 and $341.9 million for the third quarter of 2013.

Credit and debit card fee revenue was $8.3 million for the fourth quarter of 2013, compared with $8.1 million for the fourth quarter of 2012 and $8.8 million for the third quarter of 2013.  Deposit service charge revenue was $13.6 million for the fourth quarter of 2013, compared with $13.9 million for the fourth quarter of 2012 and $13.7 million for the third quarter of 2013.  Insurance commission revenue was $21.4 million for the fourth quarter of 2013, compared with $20.5 million for the fourth quarter of 2012 and $23.8 million for the third quarter of 2013. 

Noninterest Expense

Noninterest expense for the fourth quarter of 2013 was $127.8 million, compared with $143.2 million for the fourth quarter of 2012 and $129.4 million for the third quarter of 2013.  Noninterest expense for the third quarter included pre-tax charges of $2.9 million related to the write-off of unamortized issuance costs associated with the redemption of the outstanding 8.15 percent trust preferred securities and $2.8 million to increase the litigation accrual related to probable losses associated with various legal proceedings.  Salaries and employee benefits expense was $75.5 million for the fourth quarter of 2013 compared to $77.2 million for the fourth quarter of 2012 and $73.5 million for the third quarter of 2013.  Foreclosed property expense was $2.8 million for the fourth quarter of 2013 compared with $12.0 million for the fourth quarter of 2012 and $3.3 million for the third quarter of 2013.  Deposit insurance assessments were $2.7 million for the fourth quarter of 2013 compared to $3.1 million for the fourth quarter of 2012 and $3.3 million for the third quarter of 2013.

Capital Management

BancorpSouth is a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 12.99 percent at December 31, 2013 and total risk based capital of 14.25 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for "well capitalized" classification.  The Company's equity capitalization consists of 100 percent common stock.  BancorpSouth's ratio of shareholders' equity to assets was 11.61 percent at December 31, 2013, compared with 10.82 percent at December 31, 2012 and 11.46 percent at September 30, 2013.  The ratio of tangible shareholders' equity to tangible assets was 9.44 percent at December 31, 2013, compared with 8.83 percent at December 31, 2012 and 9.43 percent at September 30, 2013.

Recent Transaction Announcements

On December 18, 2013, BancorpSouth Insurance Services, Inc. acquired the assets of Houston, Texas based GEM Insurance Agencies, LP.  GEM was formed in 1954 and produces annual commission revenues of approximately $9 million.  As a part of the transaction, the Company's existing Houston office will re-locate into GEM's current office located at 3355 West Alabama Street in Houston.  The combined operations are expected to produce annual revenues of approximately $11 million.

On January 8, 2014, the Company announced the signing of a definitive merger agreement with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as "OIB"), headquartered in Monroe, Louisiana, pursuant to which Ouachita Bancshares Corp. will be merged with and into the Company.  OIB operates twelve (12) full-service banking offices along the I-20 corridor and has loan production offices in Madison, Mississippi and Natchitoches, Louisiana.  As of December 31, 2013 (unaudited), OIB, on a consolidated basis, reported total assets of $652.5 million, total loans of $477.8 million and total deposits of $549.7 million.  Under the terms of the definitive agreement, the Company will issue a maximum of 3,675,000 shares of the Company's common stock plus $22.875 million in cash for all outstanding shares of Ouachita Bancshares Corp.'s capital stock, subject to certain conditions and potential adjustments.  The terms of the agreement provide for a collar with respect to the total deal value ranging from $99 million to $112 million.  The merger has been unanimously approved by the Boards of Directors of both companies and is expected to close during the second quarter of 2014.  The transaction is subject to certain conditions, including the approval by OIB's shareholders and customary regulatory approvals.

Earlier today, the Company announced the signing of a definitive merger agreement with Central Community Corporation, headquartered in Temple, Texas, pursuant to which Central Community Corporation will be merged with and into the Company.  Central Community Corporation is the parent company of First State Bank Central Texas ("First State Bank"), which is headquartered in Austin, Texas.  First State Bank operates 31 full-service banking offices in central Texas.  As of December 31, 2013 (unaudited), Central Community Corporation, on a consolidated basis, reported total assets of $1.3 billion, total loans of $555.5 million and total deposits of $1.1 billion.  Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company's common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation's capital stock, subject to certain conditions and potential adjustments.  The merger has been unanimously approved by the Boards of Directors of both companies and is expected to close during the second quarter of 2014.  The transaction is subject to certain conditions, including the approval by Central Community Corporation's shareholders and customary regulatory approvals.

Summary

Rollins concluded, "We are extremely proud of the progress that our Company made during 2013.  Going into the year, we consistently communicated the need to grow while improving our cost structure.  We have made meaningful strides towards both goals.  We reported net loan growth for three consecutive quarters, which contributed to net loan growth of almost 4 percent for the year.  We have also continued to drive expenses down through specific initiatives as well as through more disciplined expense management.  As we look to 2014, the goals are the same.  There remains work to be done to right-size our cost structure and we must continue to grow.  We are excited about the two bank deals that have been announced this month and the opportunities they will provide for our Company going forward.  We believe both of these deals will be an integral part of our strategy to grow and to better leverage our current operating structure." 

Conference Call

BancorpSouth will conduct a conference call to discuss its fourth quarter 2013 results on January 23, 2014, at 10:00 a.m. (Central Time).  Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com.  A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.

About BancorpSouth, Inc.

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.0 billion in assets.  BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 292 commercial banking, mortgage, and insurance locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.

In connection with the proposed merger of Ouachita Bancshares Corp. with and into BancorpSouth, BancorpSouth will file a registration statement on Form S-4 with the Securities and Exchange Commission.  Shareholders of BancorpSouth and Ouachita Bancshares Corp. are encouraged to read the registration statement, including the proxy statement/prospectus that will be a part of the registration statement, because it will contain important information about the merger, BancorpSouth and Ouachita Bancshares Corp. After the registration statement is filed with the SEC, the proxy statement/prospectus and other relevant documents will be available for free on the SEC's web site (www.sec.gov), and the proxy statement/prospectus will also be made available for free from the Corporate Secretary of each of BancorpSouth and Ouachita Bancshares Corp.

In connection with the proposed merger of Central Community Corporation with and into BancorpSouth, BancorpSouth will file a registration statement on Form S-4 with the Securities and Exchange Commission. Shareholders of BancorpSouth and Central Community Corporation are encouraged to read the registration statement, including the proxy statement/prospectus that will be a part of the registration statement, because it will contain important information about the merger, BancorpSouth and Central Community Corporation After the registration statement is filed with the SEC, the proxy statement/prospectus and other relevant documents will be available for free on the SEC's web site (www.sec.gov), and the proxy statement/prospectus will also be made available for free from the Corporate Secretary of each of BancorpSouth and Central Community Corporation

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 revenue estimates for the Company's operations in Houston, Texas following the closing of the transaction with GEM and the potential for expansion of the Company's business in Houston, the terms and closing of the proposed transactions with Ouachita Bancshares Corp. and Central Community Corporation, acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company's products and services, the opportunities to enhance market share in certain markets and market acceptance of the Company generally in new markets, the impact of cost-saving initiatives, our ability to improve efficiency, 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, the ability to obtain required shareholder and regulatory approvals of the mergers, the ability of the Company, Ouachita Bancshares Corp. and Central Community  Corp. to close the mergers, the ability of the Company to expand its insurance operations in Houston, conditions in the financial markets and economic conditions generally, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company's other real estate owned, limitations on the Company's ability to declare and pay dividends, the impact of legal or administrative proceedings, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd Frank Act, and supervision of the Company's operations, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic or environmental conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the Company's ability to adapt its products and services to evolving industry standards and consumer preferences, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company's growth strategy, interruptions or breaches in the Company's information system security, the failure of certain third party vendors to perform, unfavorable ratings by rating agencies, dilution caused by the Company's issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, other factors generally understood to affect the financial results of financial services companies and other factors detailed from time to time in the Company's press releases and filings with the Securities and Exchange Commission.

 

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

12/31/13

9/30/13

6/30/13

3/31/13

12/31/12

Earnings Summary:

Interest revenue

$            112,510

$             111,961

$            112,009

$            113,027

$            117,095

Interest expense

10,093

11,720

13,796

14,949

16,234

Net interest revenue

102,417

100,241

98,213

98,078

100,861

Provision for credit losses

-

500

3,000

4,000

6,000

Net interest revenue, after provision

   for credit losses

102,417

99,741

95,213

94,078

94,861

Noninterest revenue

65,125

62,514

76,109

71,318

70,901

Noninterest expense

127,830

129,397

142,251

135,371

143,219

Income before income taxes

39,712

32,858

29,071

30,025

22,543

Income tax expense

12,014

8,001

8,316

9,220

5,563

Net income

$              27,698

$               24,857

$              20,755

$              20,805

$              16,980

Balance Sheet - Period End Balances

Total assets

$       13,029,733

$        12,916,153

$       13,217,705

$       13,393,135

$       13,397,198

Total earning assets

11,814,060

11,765,785

11,961,836

12,263,743

12,179,958

Total securities

2,466,989

2,554,156

2,644,939

2,607,176

2,434,032

Loans and leases, net of unearned income

8,958,015

8,773,115

8,678,714

8,581,538

8,636,989

Allowance for credit losses

153,236

153,974

161,047

162,601

164,466

Total deposits

10,773,836

10,717,946

10,961,618

11,164,926

11,088,146

Long-term debt

81,714

83,500

33,500

33,500

33,500

Total shareholders' equity

1,513,130

1,480,611

1,459,793

1,465,180

1,449,052

Balance Sheet - Average Balances

Total assets

$       12,955,127

$        12,928,505

$       13,146,040

$       13,249,374

$       13,143,193

Total earning assets

11,869,072

11,846,790

12,060,189

12,154,624

12,045,432

Total securities

2,511,888

2,598,786

2,616,274

2,520,414

2,454,031

Loans and leases, net of unearned income

8,830,917

8,682,966

8,588,673

8,580,329

8,635,139

Total deposits

10,739,352

10,745,945

10,938,489

11,090,989

10,938,246

Long-term debt

81,714

62,848

33,500

33,500

33,500

Total shareholders' equity

1,501,928

1,474,047

1,475,211

1,462,140

1,454,417

Nonperforming Assets:

Non-accrual loans and leases

$              92,173

$             121,353

$            149,542

$            188,190

$            207,241

Loans and leases 90+ days past due, still accruing

1,226

1,479

1,440

1,125

1,210

Restructured loans and leases, still accruing

27,007

21,502

16,953

17,702

25,099

Non-performing loans (NPLs)

120,406

144,334

167,935

207,017

233,550

Other real estate owned

69,338

76,853

88,438

96,314

103,248

Non-performing assets (NPAs)

$            189,744

$             221,187

$            256,373

$            303,331

$            336,798

Financial Ratios and Other Data:

Return on average assets

0.85%

0.76%

0.63%

0.64%

0.51%

Return on average shareholders' equity

7.32%

6.69%

5.64%

5.77%

4.64%

Return on tangible equity

9.16%

8.29%

7.12%

7.19%

5.84%

Pre-tax pre-provision return on average assets

1.22%

1.02%

0.98%

1.04%

0.86%

Non-interest income to average assets

1.99%

1.92%

2.32%

2.18%

2.15%

Non-interest expense to average assets

3.91%

3.97%

4.34%

4.14%

4.34%

Net interest margin-fully taxable equivalent

3.52%

3.45%

3.36%

3.37%

3.44%

Net interest rate spread

3.39%

3.32%

3.21%

3.21%

3.26%

Efficiency ratio (tax equivalent)

75.00%

78.11%

80.25%

78.55%

81.93%

Loan/deposit ratio

83.15%

81.85%

79.17%

76.86%

77.89%

Price to earnings mult (avg)

25.68

22.66

20.34

18.74

16.16

Market value to book value

160.04%

128.22%

115.42%

105.88%

94.87%

Market value to book value (avg)

143.60%

126.22%

107.59%

98.61%

90.83%

Headcount FTE

4,005

3,994

4,077

4,229

4,249

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

12/31/13

9/30/13

6/30/13

3/31/13

12/31/12

Credit Quality Ratios:

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

0.03%

0.35%

0.21%

0.27%

0.49%

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

0.00%

0.02%

0.14%

0.19%

0.28%

Allowance for credit losses to net loans and leases

1.71%

1.76%

1.86%

1.89%

1.90%

Allowance for credit losses to non-performing loans and leases

127.27%

106.68%

95.90%

78.54%

70.42%

Allowance for credit losses to non-performing assets

80.76%

69.61%

62.82%

53.61%

48.83%

Non-performing loans and leases to net loans and leases

1.34%

1.65%

1.94%

2.41%

2.70%

Non-performing assets to net loans and leases

2.12%

2.52%

2.95%

3.53%

3.90%

Equity Ratios:

Total shareholders' equity to total assets

11.61%

11.46%

11.04%

10.94%

10.82%

Tangible shareholders' equity to tangible assets

9.44%

9.43%

9.04%

8.96%

8.83%

Capital Adequacy:

Tier 1 capital

12.99%

13.25%

14.21%

14.06%

13.77%

Total capital

14.25%

14.50%

15.47%

15.31%

15.03%

Tier 1 leverage capital

9.93%

9.93%

10.58%

10.33%

10.25%

   Estimated for current quarter

Common Share Data:

Basic earnings per share

$                  0.29

$                   0.26

$                  0.22

$                  0.22

$                  0.18

Diluted earnings per share

0.29

0.26

0.22

0.22

0.18

Cash dividends per share

0.05

0.05

0.01

0.01

0.01

Book value per share

15.89

15.55

15.34

15.39

15.33

Tangible book value per share

12.60

12.50

12.28

12.33

12.23

Market value per share (last)

25.42

19.94

17.70

16.30

14.54

Market value per share (high)

25.54

20.77

18.06

16.52

15.00

Market value per share (low)

19.64

17.76

14.72

14.14

12.55

Market value per share (avg)

22.81

19.63

16.50

15.18

13.92

Dividend payout ratio

17.19%

19.15%

4.59%

4.55%

5.57%

Total shares outstanding

95,261,691

95,211,602

95,190,797

95,174,441

94,549,867

Average shares outstanding - basic

95,217,203

95,201,238

95,177,167

94,595,897

94,496,341

Average shares outstanding - diluted

95,644,383

95,519,318

95,405,965

94,756,356

94,616,383

Yield/Rate:

(Taxable equivalent basis)

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

4.52%

4.55%

4.62%

4.70%

4.76%

Available-for-sale securities:

  Taxable

1.51%

1.50%

1.55%

1.70%

1.76%

  Tax-exempt

5.52%

5.61%

5.47%

5.53%

5.42%

Short-term investments

0.25%

0.25%

0.25%

0.25%

0.25%

  Total interest earning assets and revenue

3.86%

3.85%

3.82%

3.87%

3.97%

Deposits:

0.34%

0.36%

0.39%

0.43%

0.47%

  Demand - interest bearing

0.18%

0.18%

0.21%

0.26%

0.30%

  Savings

0.13%

0.12%

0.14%

0.18%

0.22%

  Other time

1.13%

1.18%

1.23%

1.27%

1.32%

Short-term borrowings

0.07%

0.07%

0.07%

0.07%

0.07%

Junior subordinated debt

2.96%

6.57%

7.16%

7.23%

7.12%

Long-term debt

2.94%

3.19%

4.18%

4.21%

4.14%

  Total interest bearing liabilities and expense

0.46%

0.53%

0.61%

0.66%

0.71%

Interest bearing liabilities to interest earning assets

72.91%

74.15%

74.70%

75.54%

75.15%

Net interest tax equivalent adjustment

$                2,893

$                 2,905

$                2,931

$                2,939

$                3,162

 

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

Dec-13

Sep-13

Jun-13

Mar-13

Dec-12

(Dollars in thousands)

Assets

Cash and due from banks

$                208,961

$                199,464

$                268,647

$                147,947

$                223,814

Interest bearing deposits with other banks

319,462

361,401

526,608

969,506

979,800

Available-for-sale securities, at fair value

2,466,989

2,554,156

2,644,939

2,607,176

2,434,032

Loans and leases

8,993,888

8,806,392

8,711,023

8,614,791

8,672,752

  Less:  Unearned income

35,873

33,277

32,309

33,253

35,763

             Allowance for credit losses

153,236

153,974

161,047

162,601

164,466

Net loans and leases

8,804,779

8,619,141

8,517,667

8,418,937

8,472,523

Loans held for sale

69,593

77,114

111,574

105,523

129,138

Premises and equipment, net

315,260

314,441

313,079

313,980

319,456

Accrued interest receivable

42,150

43,034

41,425

44,696

44,356

Goodwill

286,800

275,173

275,173

275,173

275,173

Other identifiable intangibles

26,079

15,179

15,865

16,586

17,329

Bank owned life insurance

239,434

236,969

235,015

233,007

231,120

Other real estate owned

69,338

76,853

88,438

96,314

103,248

Other assets

180,888

143,228

179,275

164,290

167,209

Total Assets

$           13,029,733

$           12,916,153

$           13,217,705

$           13,393,135

$           13,397,198

Liabilities

Deposits:

  Demand:  Noninterest bearing

$             2,644,592

$             2,597,762

$             2,610,768

$             2,582,859

$             2,545,169

                  Interest bearing

4,582,450

4,493,359

4,667,041

4,840,330

4,799,496

  Savings

1,234,130

1,220,227

1,210,497

1,212,736

1,145,785

  Other time

2,312,664

2,406,598

2,473,312

2,529,001

2,597,696

Total deposits

10,773,836

10,717,946

10,961,618

11,164,926

11,088,146

Federal funds purchased and

    securities sold under agreement

    to repurchase

421,028

418,623

382,871

353,742

414,611

Accrued interest payable

4,836

5,156

5,230

5,519

6,140

Junior subordinated debt securities

31,446

31,446

160,312

160,312

160,312

Long-term debt

81,714

83,500

33,500

33,500

33,500

Other liabilities

203,743

178,871

214,381

209,956

245,437

Total Liabilities

11,516,603

11,435,542

11,757,912

11,927,955

11,948,146

Shareholders' Equity

Common stock

238,079

238,029

237,976

237,936

236,375

Capital surplus

312,900

312,798

312,074

311,091

311,909

Accumulated other comprehensive loss

(29,959)

(39,389)

(39,333)

(13,120)

(8,646)

Retained earnings

992,110

969,173

949,076

929,273

909,414

Total Shareholders' Equity

1,513,130

1,480,611

1,459,793

1,465,180

1,449,052

Total Liabilities & Shareholders' Equity

$           13,029,733

$           12,916,153

$           13,217,705

$           13,393,135

$           13,397,198

 

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

Dec-13

Sep-13

Jun-13

Mar-13

Dec-12

(Dollars in thousands)

Assets

Cash and due from banks

$                163,948

$                163,322

$                160,615

$                169,259

$                164,801

Interest bearing deposits with other banks

471,695

487,075

765,729

963,600

849,710

Available-for-sale securities, at fair value

2,511,888

2,598,786

2,616,274

2,520,414

2,454,031

Loans and leases

8,864,983

8,715,894

8,621,849

8,615,503

8,671,559

  Less:  Unearned income

34,066

32,928

33,176

35,174

36,420

             Allowance for credit losses

153,443

160,609

163,252

166,210

170,081

Net loans and leases

8,677,474

8,522,357

8,425,421

8,414,119

8,465,058

Loans held for sale

54,572

77,964

89,513

90,281

106,552

Premises and equipment, net

315,174

312,724

313,147

316,672

320,439

Accrued interest receivable

39,665

39,354

39,317

40,806

43,144

Goodwill

279,091

275,173

275,173

275,173

275,173

Other identifiable intangibles

18,658

15,446

16,142

16,876

17,511

Bank owned life insurance

237,657

235,708

233,670

231,814

208,504

Other real estate owned

77,211

86,545

91,505

97,336

119,852

Other assets

108,094

114,051

119,534

113,024

118,418

Total Assets

$           12,955,127

$           12,928,505

$           13,146,040

$           13,249,374

$           13,143,193

Liabilities

Deposits:

  Demand:  Noninterest bearing

$             2,667,667

$             2,551,812

$             2,522,577

$             2,463,436

$             2,482,168

                  Interest bearing

4,484,269

4,530,219

4,707,277

4,891,412

4,703,500

  Savings

1,224,588

1,216,599

1,208,454

1,173,603

1,117,297

  Other time

2,362,828

2,447,315

2,500,181

2,562,538

2,635,281

Total deposits

10,739,352

10,745,945

10,938,489

11,090,989

10,938,246

Federal funds purchased and

    securities sold under agreement

    to repurchase

469,245

441,807

399,789

360,178

401,968

Accrued interest payable

5,051

5,391

5,481

7,026

7,613

Junior subordinated debt securities

31,446

86,074

160,312

160,312

160,312

Long-term debt

81,714

62,848

33,500

33,500

33,500

Other liabilities

126,391

112,393

133,258

135,229

147,137

Total Liabilities

11,453,199

11,454,458

11,670,829

11,787,234

11,688,776

Shareholders' Equity

Common stock

238,038

237,997

237,956

236,922

236,197

Capital surplus

312,835

312,349

311,480

311,603

311,540

Accumulated other comprehensive (loss) income

(32,267)

(43,695)

(15,277)

(10,313)

1,260

Retained earnings

983,322

967,396

941,052

923,928

905,420

Total Shareholders' Equity

1,501,928

1,474,047

1,475,211

1,462,140

1,454,417

Total Liabilities & Shareholders' Equity

$           12,955,127

$           12,928,505

$           13,146,040

$           13,249,374

$           13,143,193

 

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended

Year Ended

Dec-13

Sep-13

Jun-13

Mar-13

Dec-12

Dec-13

Dec-12

INTEREST REVENUE:

Loans and leases

$    99,989

$   98,836

$     98,524

$    99,092

$  102,925

$ 396,441

$ 425,611

Deposits with other banks

299

310

483

602

529

1,694

1,711

Federal funds sold and securities purchased

   under agreement to resell

-

-

-

-

-

-

3

Available-for-sale securities:

    Taxable

7,963

8,218

8,405

8,700

8,729

33,286

39,408

    Tax-exempt

3,810

3,866

3,911

3,960

4,083

15,547

16,658

Loans held for sale

449

731

686

673

829

2,539

3,033

        Total interest revenue

112,510

111,961

112,009

113,027

117,095

449,507

486,424

INTEREST EXPENSE:

Interest bearing demand

2,036

2,061

2,423

3,125

3,588

9,645

16,111

Savings

387

383

422

513

606

1,705

2,697

Other time

6,746

7,271

7,671

8,041

8,749

29,729

39,797

Federal funds purchased and securities sold

   under agreement to repurchase

84

80

70

63

72

297

274

Long-term debt

605

501

349

348

349

1,803

1,446

Junior subordinated debt

235

1,424

2,860

2,857

2,869

7,376

11,502

Other

-

-

1

2

1

3

6

        Total interest expense

10,093

11,720

13,796

14,949

16,234

50,558

71,833

        Net interest revenue

102,417

100,241

98,213

98,078

100,861

398,949

414,591

  Provision for credit losses

-

500

3,000

4,000

6,000

7,500

28,000

        Net interest revenue, after provision for

          credit losses

102,417

99,741

95,213

94,078

94,861

391,449

386,591

NONINTEREST REVENUE:

Mortgage lending

9,605

5,134

17,892

12,346

17,188

44,977

56,919

Credit card, debit card and merchant fees

8,324

8,834

8,324

7,523

8,125

33,005

31,705

Deposit service charges

13,570

13,679

12,824

12,832

13,875

52,905

56,877

Trust income

3,717

3,332

3,192

3,210

3,391

13,451

11,913

Security gains (losses), net

29

(5)

3

19

152

46

442

Insurance commissions

21,397

23,800

25,862

26,641

20,502

97,700

90,138

Other

8,483

7,740

8,012

8,747

7,668

32,982

32,155

        Total noninterest revenue

65,125

62,514

76,109

71,318

70,901

275,066

280,149

NONINTEREST EXPENSE:

Salaries and employee benefits

75,466

73,532

78,284

79,414

77,203

306,696

304,624

Occupancy, net of rental income

9,935

10,360

10,577

10,237

10,643

41,109

42,140

Equipment

4,298

4,555

4,585

4,948

5,309

18,386

20,849

Deposit insurance assessments

2,687

3,325

2,939

2,804

3,103

11,755

16,478

Voluntary early retirement expense

-

-

10,850

-

-

10,850

-

Write-off and amortization of bond issue cost

12

2,907

38

38

38

2,995

153

Other

35,432

34,718

34,978

37,930

46,923

143,058

164,949

        Total noninterest expenses

127,830

129,397

142,251

135,371

143,219

534,849

549,193

        Income before income taxes

39,712

32,858

29,071

30,025

22,543

131,666

117,547

Income tax expense

12,014

8,001

8,316

9,220

5,563

37,551

33,252

        Net income

$    27,698

$   24,857

$     20,755

$    20,805

$   16,980

$  94,115

$  84,295

Net income per share: Basic

$       0.29

$       0.26

$        0.22

$       0.22

$       0.18

$      0.99

$      0.90

                                  Diluted

$       0.29

$       0.26

$        0.22

$       0.22

$       0.18

$      0.99

$      0.90

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-13

Sep-13

Jun-13

Mar-13

Dec-12

LOAN AND LEASE PORTFOLIO:

Commercial and industrial

$ 1,529,249

$ 1,503,809

$ 1,552,762

$ 1,480,916

$ 1,476,611

Real estate

   Consumer mortgages

1,976,073

1,931,171

1,880,338

1,871,312

1,873,875

   Home equity

494,339

490,361

482,068

482,398

486,074

   Agricultural

234,576

234,547

237,914

249,467

256,196

   Commercial and industrial-owner occupied

1,473,320

1,422,077

1,375,711

1,334,974

1,333,103

   Construction, acquisition and development

741,458

723,609

709,499

728,092

735,808

   Commercial real estate

1,846,039

1,795,352

1,754,841

1,739,533

1,748,881

Credit cards

111,328

105,112

103,251

98,803

104,884

All other

551,633

567,077

582,330

596,043

621,557

     Total loans

$ 8,958,015

$ 8,773,115

$ 8,678,714

$ 8,581,538

$ 8,636,989

ALLOWANCE FOR CREDIT LOSSES:

Balance, beginning of period

$   153,974

$   161,047

$    162,601

$   164,466

$   169,019

Loans and leases charged off:

Commercial and industrial

(837)

(889)

(1,008)

(1,938)

(2,174)

Real estate

   Consumer mortgages

(1,435)

(2,996)

(3,114)

(1,614)

(3,789)

   Home equity

(287)

(379)

(201)

(602)

(1,064)

   Agricultural

(238)

(169)

(327)

(2)

(456)

   Commercial and industrial-owner occupied

(1,041)

(1,684)

(830)

(300)

(1,421)

   Construction, acquisition and development

(1,784)

(1,727)

(2,036)

(1,198)

(5,286)

   Commercial real estate

(1,039)

(2,441)

(3,720)

(3,141)

(4,026)

Credit cards

(559)

(750)

(557)

(450)

(531)

All other

(1,108)

(837)

(462)

(492)

(977)

     Total loans charged off

(8,328)

(11,872)

(12,255)

(9,737)

(19,724)

Recoveries:

Commercial and industrial

1,361

820

747

589

3,507

Real estate

   Consumer mortgages

1,735

1,516

708

1,108

819

   Home equity

97

66

184

260

66

   Agricultural

34

48

120

13

10

   Commercial and industrial-owner occupied

734

297

1,439

254

561

   Construction, acquisition and development

2,483

953

360

886

1,621

   Commercial real estate

784

221

3,634

339

2,208

Credit cards

133

164

184

148

144

All other

229

214

325

275

235

     Total recoveries

7,590

4,299

7,701

3,872

9,171

Net charge-offs

(738)

(7,573)

(4,554)

(5,865)

(10,553)

Provision charged to operating expense

-

500

3,000

4,000

6,000

Balance, end of period

$   153,236

$   153,974

$    161,047

$   162,601

$   164,466

Average loans for period

$ 8,830,917

$ 8,682,966

$ 8,588,673

$ 8,580,329

$ 8,635,139

Ratio:

Net charge-offs to average loans (annualized)

0.03%

0.35%

0.21%

0.27%

0.49%

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-13

Sep-13

Jun-13

Mar-13

Dec-12

NON-PERFORMING ASSETS

NON-PERFORMING LOANS AND LEASES:

  Nonaccrual Loans and Leases

    Commercial and industrial

$      3,079

$         5,498

$         6,225

$      7,009

$         9,311

    Real estate

       Consumer mortgages

25,645

30,569

34,226

39,012

36,133

       Home equity

3,695

3,287

3,862

4,272

3,497

       Agricultural

1,260

4,086

5,007

6,667

7,587

       Commercial and industrial-owner occupied

18,568

18,138

17,084

20,719

20,910

       Construction, acquisition and development

17,567

26,127

39,315

51,728

66,635

       Commercial real estate

20,972

31,468

40,940

55,318

57,656

    Credit cards

119

196

398

418

415

    All other

1,268

1,984

2,485

3,047

5,097

         Total nonaccrual loans and leases

$    92,173

$      121,353

$      149,542

$  188,190

$      207,241

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

    Commercial and industrial

$          27

$             15

$                -

$          22

$            414

    Real estate

       Consumer mortgages

888

1,178

1,107

842

512

       Home equity

-

-

-

-

-

       Agricultural

-

-

-

-

10

       Commercial and industrial-owner occupied

-

-

-

-

19

       Construction, acquisition and development

-

-

-

-

-

       Commercial real estate

311

-

120

-

-

    Credit cards

-

263

213

261

228

    All other

-

23

-

-

27

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

1,226

1,479

1,440

1,125

1,210

  Restructured Loans and Leases, Still Accruing

27,007

21,502

16,953

17,702

25,099

     Total non-performing loans and leases

120,406

144,334

167,935

207,017

233,550

OTHER REAL ESTATE OWNED:

69,338

76,853

88,438

96,314

103,248

Total Non-performing Assets

$  189,744

$      221,187

$      256,373

$  303,331

$      336,798

Additions to Nonaccrual Loans and Leases During the Quarter

$    18,556

$       21,182

$       21,890

$    22,294

$       44,674

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

    Commercial and industrial

$      2,817

$         1,909

$         1,517

$      1,764

$         3,080

    Real estate

       Consumer mortgages

14,150

10,914

11,887

11,720

13,403

       Home equity

1,828

1,278

1,315

1,567

1,272

       Agricultural

495

761

569

757

306

       Commercial and industrial-owner occupied

4,081

1,995

1,323

956

3,498

       Construction, acquisition and development

1,993

3,920

1,835

4,292

2,303

       Commercial real estate

5,574

5,818

535

1,331

1,176

    Credit cards

655

688

668

544

777

    All other

2,189

1,634

1,591

1,473

2,422

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

$    33,782

$       28,917

$       21,240

$    24,404

$       28,237

Credit Quality Ratios:

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

0.00%

0.02%

0.14%

0.19%

0.28%

Allowance for credit losses to net loans and leases

1.71%

1.76%

1.86%

1.89%

1.90%

Allowance for credit losses to non-performing assets

80.76%

69.61%

62.82%

53.61%

48.83%

Allowance for credit losses to non-performing loans and leases

127.27%

106.68%

95.90%

78.54%

70.42%

Non-performing loans and leases to net loans and leases

1.34%

1.65%

1.94%

2.41%

2.70%

Non-performing assets to net loans and leases

2.12%

2.52%

2.95%

3.53%

3.90%

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-13

Sep-13

Jun-13

Mar-13

Dec-12

REAL ESTATE CONSTRUCTION, ACQUISITION 

   AND DEVELOPMENT ("CAD") PORTFOLIO:

  Outstanding Balance

     Multi-family construction

$       7,702

$         7,974

$         8,902

$       8,182

$         6,542

     One-to-four family construction

224,286

203,988

202,603

193,032

177,392

     Recreation and all other loans

36,868

41,762

42,132

42,909

44,840

     Commercial construction

150,847

139,041

117,901

111,702

114,099

     Commercial acquisition and development

128,157

136,206

136,174

154,997

161,546

     Residential acquisition and development

193,598

194,638

201,787

217,270

231,389

         Total outstanding balance

$   741,458

$      723,609

$      709,499

$   728,092

$      735,808

  Nonaccrual CAD Loans

     Multi-family construction

$             -

$                -

$                -

$             -

$                -

     One-to-four family construction

2,937

3,249

6,193

8,154

10,609

     Recreation and all other loans

728

782

800

978

1,160

     Commercial construction

865

1,686

2,765

3,381

5,889

     Commercial acquisition and development

6,890

11,150

14,225

14,240

17,337

     Residential acquisition and development

6,147

9,260

15,332

24,975

31,640

         Total nonaccrual CAD loans

$     17,567

$       26,127

$       39,315

$     51,728

$       66,635

  CAD Loans 90+ Days Past Due, Still Accruing:

     Multi-family construction

$             -

$                -

$                -

$             -

$                -

     One-to-four family construction

-

-

-

-

-

     Recreation and all other loans

-

-

-

-

-

     Commercial construction

-

-

-

-

-

     Commercial acquisition and development

-

-

-

-

-

     Residential acquisition and development

-

-

-

-

-

         Total CAD loans 90+ days past due, still accruing

$             -

$                -

$                -

$             -

$                -

  Restructured CAD Loans, Still Accruing

     Multi-family construction

$             -

$                -

$                -

$             -

$                -

     One-to-four family construction

1,274

1,028

867

-

781

     Recreation and all other loans

13

15

15

17

17

     Commercial construction

346

348

351

-

-

     Commercial acquisition and development

1,990

2,010

2,030

2,047

458

     Residential acquisition and development

3,111

3,162

3,458

5,148

4,107

         Total restructured CAD loans, still accruing

$       6,734

$         6,563

$         6,721

$       7,212

$         5,363

        Total Non-performing CAD loans

$     24,301

$       32,690

$       46,036

$     58,940

$       71,998

  CAD NPL as a % of Outstanding CAD Balance

     Multi-family construction

-

-

-

-

-

     One-to-four family construction

1.9%

2.1%

3.5%

4.2%

6.4%

     Recreation and all other loans

2.0%

1.9%

1.9%

2.3%

2.6%

     Commercial construction

0.8%

1.5%

2.6%

3.0%

5.2%

     Commercial acquisition and development

6.9%

9.7%

11.9%

10.5%

11.0%

     Residential acquisition and development

4.8%

6.4%

9.3%

13.9%

15.4%

         Total CAD NPL as a % of outstanding CAD balance

3.3%

4.5%

6.5%

8.1%

9.8%

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

December 31, 2013

Special

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

Commercial and industrial

$ 1,495,972

$            978

$       30,886

$          99

$                -

$    1,314

$ 1,529,249

Real estate

   Consumer mortgages

1,859,094

1,531

108,615

427

-

6,406

1,976,073

   Home equity

478,283

250

14,570

96

-

1,140

494,339

   Agricultural

214,728

779

18,187

-

-

882

234,576

   Commercial and industrial-owner occupied

1,409,757

116

50,853

849

-

11,745

1,473,320

   Construction, acquisition and development

674,299

1,459

49,401

587

-

15,712

741,458

   Commercial real estate

1,751,553

386

76,199

420

-

17,481

1,846,039

Credit cards

111,328

-

-

-

-

-

111,328

All other

538,467

71

12,832

-

-

263

551,633

     Total loans

$ 8,533,481

$         5,570

$      361,543

$      2,478

$                -

$  54,943

$ 8,958,015

September 30, 2013

Special

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

Commercial and industrial

$ 1,461,578

$         7,774

$       31,596

$            -

$                -

$    2,861

$ 1,503,809

Real estate

   Consumer mortgages

1,794,492

22,114

103,987

918

-

9,660

1,931,171

   Home equity

471,418

2,569

15,069

-

-

1,305

490,361

   Agricultural

210,065

3,044

17,816

-

-

3,622

234,547

   Commercial and industrial-owner occupied

1,343,131

12,632

52,992

475

105

12,742

1,422,077

   Construction, acquisition and development

637,448

8,450

53,498

1,027

-

23,186

723,609

   Commercial real estate

1,668,562

17,266

83,226

412

-

25,886

1,795,352

Credit cards

105,112

-

-

-

-

-

105,112

All other

548,402

4,497

13,695

-

-

483

567,077

     Total loans

$ 8,240,208

$       78,346

$      371,879

$      2,832

$            105

$  79,745

$ 8,773,115

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

As of

Dec-13

Sep-13

Jun-13

Mar-13

Dec-12

Unpaid principal balance of impaired loans

$      72,114

$      106,955

$      144,408

$  183,440

$      206,072

Cumulative charge-offs on impaired loans

17,171

27,210

38,916

45,649

49,344

Impaired nonaccrual loan and lease outstanding balance

54,943

79,745

105,492

137,791

156,728

Other non-accrual loans and leases not impaired

37,230

41,608

44,050

50,399

50,513

     Total non-accrual loans and leases

$      92,173

$      121,353

$      149,542

$  188,190

$      207,241

Allowance for impaired loans

4,146

3,843

7,965

11,658

10,541

     Nonaccrual loans and leases, net of specific reserves

$      88,027

$      117,510

$      141,577

$  176,532

$      196,700

Loans and leases 90+ days past due, still accruing

$        1,226

$         1,479

$         1,440

$      1,125

$         1,210

Restructured loans and leases, still accruing

27,007

21,502

16,953

17,702

25,099

     Total non-performing loans and leases

$    120,406

$      144,334

$      167,935

$  207,017

$      233,550

Allowance for impaired loans

$        4,146

$         3,843

$         7,965

$    11,658

$       10,541

Allowance for all other loans and leases

149,090

150,131

153,082

150,943

153,925

     Total allowance for credit losses

$    153,236

$      153,974

$      161,047

$  162,601

$      164,466

Outstanding balance of impaired loans

$      54,943

$       79,745

$      105,492

$  137,791

$      156,728

Allowance for impaired loans

4,146

3,843

7,965

11,658

10,541

     Net book value of impaired loans

$      50,797

$       75,902

$       97,527

$  126,133

$      146,187

Net book value of impaired loans as a %

     of unpaid principal balance

70%

71%

68%

69%

71%

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

     the allowance for all other loans and leases

400%

361%

348%

299%

305%

Coverage of non-performing loans and leases not impaired

     by the allowance for all other loans and leases

228%

232%

245%

218%

200%

 

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)

December 31, 2013

Alabama

Greater

Corporate

and Florida

Memphis

Texas and 

Banking

Panhandle

Arkansas*

Mississippi*

Missouri

Area

Tennessee*

Louisiana

and Other

Total

LOAN AND LEASE PORTFOLIO:

Commercial and industrial

$   83,078

$   164,113

$   280,964

$  36,018

$     23,551

$     81,253

$   266,358

$   593,914

$  1,529,249

Real estate

   Consumer mortgages

127,619

260,013

688,228

61,471

101,167

158,714

487,931

90,930

1,976,073

   Home equity

64,438

39,785

165,421

20,997

67,170

70,517

64,027

1,984

494,339

   Agricultural

8,416

71,200

58,042

3,575

14,547

11,129

63,155

4,512

234,576

   Commercial and industrial-owner occupied

176,162

173,027

472,646

64,911

91,790

88,710

282,816

123,258

1,473,320

   Construction, acquisition and development

99,980

70,508

190,990

28,024

80,339

101,782

134,551

35,284

741,458

   Commercial real estate

266,963

311,504

275,601

212,869

93,079

104,034

425,933

156,056

1,846,039

Credit cards

-

-

-

-

-

-

-

111,328

111,328

All other

32,101

59,247

147,163

2,590

48,056

39,404

86,039

137,033

551,633

     Total loans

$ 858,757

$ 1,149,397

$ 2,279,055

$ 430,455

$   519,699

$   655,543

$ 1,810,810

$ 1,254,299

$  8,958,015

CAD PORTFOLIO:

Multi-family construction

$           -

$         997

$         167

$           -

$             -

$       4,519

$       2,019

$             -

$        7,702

One-to-four family construction

37,616

13,995

50,717

7,332

11,861

65,188

36,707

870

224,286

Recreation and all other loans

1,575

7,787

12,178

517

4,590

1,165

9,056

-

36,868

Commercial construction

18,471

18,154

34,295

7,228

14,357

5,137

25,630

27,575

150,847

Commercial acquisition and development

12,054

15,666

37,905

5,607

23,404

11,071

21,091

1,359

128,157

Residential acquisition and development

30,264

13,909

55,728

7,340

26,127

14,702

40,048

5,480

193,598

     Total CAD loans

$   99,980

$     70,508

$   190,990

$  28,024

$     80,339

$   101,782

$   134,551

$     35,284

$     741,458

NON-PERFORMING LOANS AND LEASES:

Commercial and industrial

$     1,404

$         915

$         987

$           -

$           68

$           95

$         345

$         365

$        4,179

Real estate

   Consumer mortgages

1,390

1,525

8,926

778

2,032

3,007

3,804

7,647

29,109

   Home equity

746

116

938

127

304

921

539

4

3,695

   Agricultural

-

753

107

272

201

-

551

1

1,885

   Commercial and industrial-owner occupied

3,828

3,683

8,676

549

1,656

3,871

540

748

23,551

   Construction, acquisition and development

4,460

417

4,008

2,055

8,584

1,146

2,574

1,057

24,301

   Commercial real estate

3,563

139

2,981

12,112

2,278

4,056

2,586

1,649

29,364

Credit cards

-

-

-

-

-

-

-

1,764

1,764

All other

148

140

1,443

-

47

325

429

26

2,558

     Total loans

$   15,539

$       7,688

$     28,066

$  15,893

$     15,170

$     13,421

$     11,368

$     13,261

$     120,406

NON-PERFORMING LOANS AND LEASES

   AS A PERCENTAGE OF OUTSTANDING:

Commercial and industrial

1.69%

0.56%

0.35%

0.00%

0.29%

0.12%

0.13%

0.06%

0.27%

Real estate

   Consumer mortgages

1.09%

0.59%

1.30%

1.27%

2.01%

1.89%

0.78%

8.41%

1.47%

   Home equity

1.16%

0.29%

0.57%

0.60%

0.45%

1.31%

0.84%

0.20%

0.75%

   Agricultural

0.00%

1.06%

0.18%

7.61%

1.38%

0.00%

0.87%

0.02%

0.80%

   Commercial and industrial-owner occupied

2.17%

2.13%

1.84%

0.85%

1.80%

4.36%

0.19%

0.61%

1.60%

   Construction, acquisition and development

4.46%

0.59%

2.10%

7.33%

10.68%

1.13%

1.91%

3.00%

3.28%

   Commercial real estate

1.33%

0.04%

1.08%

5.69%

2.45%

3.90%

0.61%

1.06%

1.59%

Credit cards

-

-

-

-

-

-

-

1.58%

1.58%

All other

0.46%

0.24%

0.98%

0.00%

0.10%

0.82%

0.50%

0.02%

0.46%

     Total loans

1.81%

0.67%

1.23%

3.69%

2.92%

2.05%

0.63%

1.06%

1.34%

*Excludes the Greater Memphis Area.

 

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

December 31, 2013

Alabama

Greater

and Florida

Memphis

Texas and 

Panhandle

Arkansas*

Mississippi*

Missouri

Area

Tennessee*

Louisiana

Other

Total

OTHER REAL ESTATE OWNED:

Commercial and industrial

$        223

$                -

$                -

$            -

$                -

$             -

$           -

$           -

$         223

Real estate

   Consumer mortgages

1,613

309

1,532

33

132

210

-

108

3,937

   Home equity

442

-

-

-

-

-

-

-

442

   Agricultural

907

-

216

-

1,084

930

-

-

3,137

   Commercial and industrial-owner occupied

33

32

1,002

-

449

25

105

-

1,646

   Construction, acquisition and development

15,667

631

11,631

1,059

22,696

5,174

257

158

57,273

   Commercial real estate

353

316

569

-

980

-

140

-

2,358

All other

84

1

82

-

28

-

94

33

322

     Total loans

$    19,322

$         1,289

$       15,032

$      1,092

$       25,369

$      6,339

$       596

$       299

$    69,338

Quarter Ended

Dec-13

Sep-13

Jun-13

Mar-13

Dec-12

OTHER REAL ESTATE OWNED:

Balance, beginning of period

$    76,853

$       88,438

$       96,314

$  103,248

$      128,211

Additions to foreclosed properties

   New foreclosed property

7,868

9,536

9,639

2,222

8,451

Reductions in foreclosed properties

   Sales

(14,272)

(19,333)

(15,641)

(7,811)

(27,892)

   Writedowns

(1,111)

(1,788)

(1,874)

(1,345)

(5,522)

Balance, end of period

$    69,338

$       76,853

$       88,438

$    96,314

$      103,248

FORECLOSED PROPERTY EXPENSE

Loss (gain) on sale of other real estate owned

$        949

$            352

$            166

$       (200)

$         4,203

Writedown of other real estate owned

1,111

1,788

1,874

1,345

5,522

Other foreclosed property expense

771

1,158

1,205

1,209

2,266

Total foreclosed property expense

$      2,831

$         3,298

$         3,245

$      2,354

$       11,991

*Excludes the Greater Memphis Area.

 

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-13

Sep-13

Jun-13

Mar-13

Dec-12

NONINTEREST REVENUE:

Mortgage lending

$      9,605

$         5,134

$       17,892

$    12,346

$       17,188

Credit card, debit card and merchant fees

8,324

8,834

8,324

7,523

8,125

Deposit service charges

13,570

13,679

12,824

12,832

13,875

Trust income

3,717

3,332

3,192

3,210

3,391

Securities gains (losses), net

29

(5)

3

19

152

Insurance commissions

21,397

23,800

25,862

26,641

20,502

Annuity fees

566

719

543

483

418

Brokerage commissions and fees

1,037

2,005

2,068

2,093

1,715

Bank-owned life insurance

2,466

1,954

2,008

1,887

1,899

Other miscellaneous income

4,414

3,062

3,393

4,284

3,636

     Total noninterest revenue

$    65,125

$       62,514

$       76,109

$    71,318

$       70,901

NONINTEREST EXPENSE:

Salaries and employee benefits

$    75,466

$       73,532

$       78,284

$    79,414

$       77,203

Occupancy, net of rental income

9,935

10,360

10,577

10,237

10,643

Equipment

4,298

4,555

4,585

4,948

5,309

Deposit insurance assessments

2,687

3,325

2,939

2,804

3,103

Voluntary early retirement expense

-

-

10,850

-

-

Amortization of bond issue cost

12

2,907

38

38

38

Advertising

1,436

1,210

1,169

743

2,045

Foreclosed property expense

2,831

3,298

3,245

2,354

11,991

Telecommunications

1,971

2,227

2,184

2,099

2,168

Public relations

972

1,105

1,175

1,005

1,304

Data processing

2,939

2,772

2,783

2,468

2,714

Computer software

2,197

2,190

2,146

1,963

2,031

Amortization of intangibles

819

686

722

743

857

Legal

2,537

4,626

3,896

9,366

3,133

Postage and shipping

1,133

1,027

1,074

1,135

1,117

Other miscellaneous expense

18,597

15,577

16,584

16,054

19,563

Total noninterest expense

$  127,830

$      129,397

$      142,251

$  135,371

$      143,219

INSURANCE COMMISSIONS:

Property and casualty commissions

$    15,588

$       18,372

$       18,762

$    16,878

$       14,968

Life and health commissions

4,525

4,061

5,093

4,688

4,376

Risk management income

648

628

573

650

581

Other

636

739

1,434

4,425

577

Total insurance commissions

$    21,397

$       23,800

$       25,862

$    26,641

$       20,502

 

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

Quarter Ended

Dec-13

Sep-13

Jun-13

Mar-13

Dec-12

MORTGAGE SERVICING RIGHTS:

Fair value, beginning of period

$     51,025

$       49,001

$       41,478

$     37,882

$       34,562

Additions to mortgage servicing rights:

   Originations of servicing assets

1,984

3,826

4,012

4,268

5,146

Changes in fair value:

   Due to payoffs/paydowns

(1,240)

(1,560)

(1,739)

(1,705)

(2,005)

   Due to change in valuation inputs or

     assumptions used in the valuation model

2,894

(240)

5,252

1,037

183

   Other changes in fair value

(1)

(2)

(2)

(4)

(4)

Fair value, end of period

$     54,662

$       51,025

$       49,001

$     41,478

$       37,882

MORTGAGE LENDING REVENUE:

Origination

$       3,590

$         2,862

$       10,471

$       9,187

$       15,131

Servicing

4,361

4,072

3,908

3,827

3,879

MSR payoffs/paydowns

(1,240)

(1,560)

(1,739)

(1,705)

(2,005)

MSR valuation adjustment

2,894

(240)

5,252

1,037

183

Total mortgage lending revenue

$       9,605

$         5,134

$       17,892

$     12,346

$       17,188

Mortgage loans serviced

$ 5,577,325

$   5,543,619

$   5,393,580

$ 5,236,852

$   5,058,912

MSR/mtg loans serviced

0.98%

0.92%

0.91%

0.79%

0.75%

AVAILABLE-FOR-SALE SECURITIES, at fair value

U.S. Government agencies

$ 1,458,349

$   1,519,459

$   1,581,570

$ 1,517,725

$   1,401,996

Government agency issued residential

   mortgage-back securities

250,234

268,367

292,586

334,550

366,875

Government agency issued commercial

   mortgage-back securities

230,912

229,412

227,381

196,459

91,445

Obligations of states and political subdivisions

519,405

528,889

535,337

550,475

565,873

Other

8,089

8,029

8,065

7,967

7,843

Total available-for-sale securities

$ 2,466,989

$   2,554,156

$   2,644,939

$ 2,607,176

$   2,434,032

 

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

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

Reconciliation of Pre-tax, Pre-provision Earnings:

Quarter ended

12/31/13

9/30/13

6/30/13

3/31/13

12/31/12

Net income

$          27,698

$          24,857

$          20,755

$          20,805

$         16,980

Plus:

Provision for credit losses

-

500

3,000

4,000

6,000

Income tax expense

12,014

8,001

8,316

9,220

5,563

Pre-tax, pre-provision earnings

$          39,712

$          33,358

$          32,071

$          34,025

$         28,543

Reconciliation of Tangible Assets and Tangible Shareholders' Equity to 

Total Assets and Total Shareholders' Equity:

Quarter ended

12/31/13

9/30/13

6/30/13

3/31/13

12/31/12

Tangible assets

Total assets

$    13,029,733

$    12,916,153

$    13,217,705

$    13,393,135

$   13,397,198

Less:  

Goodwill

286,800

275,173

275,173

275,173

275,173

Other identifiable intangible assets

26,079

15,179

15,865

16,586

17,329

Total tangible assets

$    12,716,854

$    12,625,801

$    12,926,667

$    13,101,376

$   13,104,696

Tangible shareholders' equity

Total shareholders' equity

$     1,513,130

$     1,480,611

$     1,459,793

$      1,465,180

$    1,449,052

Less:

Goodwill

286,800

275,173

275,173

275,173

275,173

Other identifiable intangible assets

26,079

15,179

15,865

16,586

17,329

Total tangible shareholders' equity

$     1,200,251

$     1,190,259

$     1,168,755

$      1,173,421

$    1,156,550

Total average assets

$    12,955,127

$    12,928,505

$    13,146,040

$    13,249,374

$   13,143,193

Total common shares outstanding

95,261,691

95,211,602

95,190,797

95,174,441

94,549,867

Tangible shareholders' equity to tangible assets*

9.44%

9.43%

9.04%

8.96%

8.83%

Return on tangible equity **

9.16%

8.29%

7.12%

7.19%

5.84%

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

1.22%

1.02%

0.98%

1.04%

0.86%

Tangible book value per share****

$           12.60

$           12.50

$           12.28

$            12.33

$          12.23

*

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

**

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

***

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

****

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

 

SOURCE BancorpSouth, Inc.



RELATED LINKS

http://www.bancorpsouth.com