BancorpSouth Announces Second Quarter 2015 Financial Results

Jul 20, 2015, 16:36 ET from BancorpSouth, Inc.

TUPELO, Miss., July 20, 2015 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and six months ended June 30, 2015.

Highlights for the second quarter of 2015 included:

  • Net income of $39.7 million or $0.41 per diluted share.
  • Net operating income of $39.7 million or $0.41 per diluted share.
  • Generated net loan growth of $280.6 million, or 11.6 percent on an annualized basis.
  • Elevated recoveries of previously charged-off loans, which resulted in net recoveries of $6.7 million, contributed to a negative provision for credit losses of $5.0 million.
  • Mortgage lending revenue totaled $14.1 million, including a positive mortgage servicing rights ("MSR") valuation adjustment of $4.3 million.
  • Continued progress toward improving cost structure reflected by decline in efficiency ratio to 69.52 percent.

The Company reported net income of $39.7 million, or $0.41 per diluted share, for the second quarter of 2015 compared with net income of $30.9 million, or $0.32 per diluted share, for the second quarter of 2014 and net income of $32.3 million, or $0.33 per diluted share, for the first quarter of 2015.  Additionally, the Company reported net income of $72.0 million, or $0.74 per diluted share, for the first six months of 2015 compared to $59.3 million, or $0.62 per diluted share, for the first six months of 2014.

The Company reported net operating income (excluding merger related and other non-operating expenses) of $39.7 million, or $0.41 per diluted share, for the second quarter of 2015 compared to $31.5 million, or $0.33 per diluted share, for the second quarter of 2014 and $32.3 million, or $0.33 per diluted share, for the first quarter of 2015.

"Our second quarter results reflect our Company's most profitable quarter since 2008," remarked Dan Rollins, BancorpSouth Chairman and Chief Executive Officer.  "Progress in core fundamentals across all areas of our Company continues to drive earnings improvement.  Our lenders continue to develop relationships and win new business as evidenced by net loan growth of over $280 million, or approximately 12 percent annualized, for the quarter.  Our credit quality remains strong as elevated recoveries of previously charged-off loans contributed to a negative provision for credit losses of $5.0 million.  Finally, we continue to challenge expenses and improve our cost structure.  While we have more work to do on our expense base, we are pleased to report a decline in our quarterly efficiency ratio to 69.52 percent for the quarter."

Net Interest Revenue

Net interest revenue was $107.3 million for the second quarter of 2015, an increase of 4.1 percent from $103.1 million for the second quarter of 2014 and an increase of 1.2 percent from $106.1 million for the first quarter of 2015.  The fully taxable equivalent net interest margin was 3.54 percent for the second quarter of 2015 compared to 3.59 percent for the second quarter of 2014 and 3.56 percent for the first quarter of 2015.  Yields on loans and leases declined to 4.23 percent for the second quarter of 2015 from 4.38 percent for the second quarter of 2014 and declined from 4.31 percent for the first quarter of 2015, while yields on total interest earning assets were 3.78 percent for the second quarter of 2015 compared with 3.88 percent for the second quarter of 2014 and 3.80 percent the first quarter of 2015.  The average cost of deposits was 0.23 percent for the second quarter of 2015 compared to 0.28 percent for the second quarter of 2014 and 0.24 percent for the first quarter of 2015.

Asset, Deposit and Loan Activity

Total assets were $13.6 billion at June 30, 2015 compared with $13.0 billion at June 30, 2014.  Loans and leases, net of unearned income, were $10.0 billion at June 30, 2015 compared with $9.3 billion at June 30, 2014.

Total deposits were $11.1 billion at June 30, 2015 compared with $10.7 billion at June 30, 2014.  A decrease in time deposits of $207.3 million, or 9.7 percent, at June 30, 2015 compared to June 30, 2014 was more than offset by growth in other lower cost deposits.  Noninterest bearing demand deposits increased $193.7 million, or 7.1 percent, over the same period.  Additionally, savings deposits increased $108.4 million, or 8.3 percent, while interest bearing demand deposits increased $369.7 million, or 8.2 percent, over the same period.  At June 30, 2015, $680.3 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.65 percent.

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the quarter reflect a negative provision for credit losses of $5.0 million, compared to no recorded provision for the second quarter of 2014 and a negative provision of $5.0 million for the first quarter of 2015.  Total non-performing assets ("NPAs") were $103.7 million, or 1.04 percent of net loans and leases, at June 30, 2015 compared with $128.9 million, or 1.38 percent of net loans and leases, at June 30, 2014, and $89.4 million, or 0.92 percent of net loans and leases, at March 31, 2015.

Net recoveries for the second quarter of 2015 were $6.7 million, compared with net charge-offs of $2.6 million for the second quarter of 2014 and $0.8 million for the first quarter of 2015.  Gross charge-offs were $5.0 million for the second quarter of 2015, compared with $5.6 million for the second quarter of 2014 and $4.8 million for the first quarter of 2015.  Gross recoveries of previously charged-off loans were $11.7 million for the second quarter of 2015, compared with $3.0 million for the second quarter of 2014 and $4.0 million for the first quarter of 2015.  The increase in recoveries for the current quarter was driven primarily by a single recovery of a previously charged-off loan totaling $6.0 million.  Annualized net recoveries were 0.27 percent of average loans and leases for the second quarter of 2015, compared with annualized net charge-offs of 0.11 percent for the second quarter of 2014 and 0.03 percent for the first quarter of 2015.

Non-performing loans ("NPLs") were $79.4 million, or 0.79 percent of net loans and leases, at June 30, 2015, compared with $73.7 million, or 0.79 percent of net loans and leases, at June 30, 2014, and $61.5 million, or 0.63 percent of net loans and leases, at March 31, 2015.  The allowance for credit losses was $138.3 million, or 1.38 percent of net loans and leases, at June 30, 2015 compared with $147.1 million, or 1.58 percent of net loans and leases, at June 30, 2014 and $136.7 million, or 1.40 percent of net loans and leases, at March 31, 2015.

NPLs at June 30, 2015 consisted primarily of $67.8 million of nonaccrual loans, compared with $54.4 million of nonaccrual loans at March 31, 2015.  The increase in nonaccrual loans during the quarter was driven by three relationships that are not concentrated in any specific geography or loan type.  Payments received on nonaccrual loans during the second quarter of 2015 totaled $16.1 million, compared with payments received on such loans of $18.9 million during the first quarter of 2015.  NPLs at June 30, 2015 also included $1.6 million of loans 90 days or more past due and still accruing, compared with $1.6 million of such loans at March 31, 2015, and included restructured loans still accruing of $10.1 million at June 30, 2015, compared with $5.4 million of such loans at March 31, 2015.  Early stage past due loans, representing loans 30-89 days past due, totaled $23.8 million at June 30, 2015 compared to $29.1 million at March 31, 2015.

Other real estate owned ("OREO") decreased $3.6 million to $24.3 million during the second quarter of 2015 from $27.9 million at March 31, 2015.  This net decrease reflected $1.7 million of OREO added through foreclosure, offset by sales of OREO of $4.3 million.  Write-downs in the value of existing properties were $1.0 million for the second quarter of 2015 compared to $2.2 million for the first quarter of 2015.  Sales of OREO during the second quarter of 2015 resulted in a net loss of $0.2 million compared to a net gain of $0.8 million for the first quarter of 2015.  At June 30, 2015, OREO was carried at 42.6 percent of the aggregate loan balances at the time of foreclosure, compared with 39.0 percent at March 31, 2015.

Noninterest Revenue

Noninterest revenue was $74.3 million for the second quarter of 2015, compared with $69.8 million for the second quarter of 2014 and $73.3 million for the first quarter of 2015.  These results included a positive MSR valuation adjustment of $4.3 million for the second quarter of 2015 compared with a negative MSR valuation adjustment of $2.1 million for the second quarter of 2014 and a negative MSR valuation adjustment of $3.0 million for the first quarter of 2015.  Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.

Excluding the MSR valuation adjustments, net mortgage lending revenue was $9.8 million for the second quarter of 2015, compared with $11.2 million for the second quarter of 2014 and $11.6 million for the first quarter of 2015.  Mortgage origination volume for the second quarter of 2015 was $417.2 million, compared with $291.0 million for the second quarter of 2014 and $311.1 million for the first quarter of 2015.

Credit and debit card fee revenue was $9.3 million for the second quarter of 2015, compared with $8.6 million for the second quarter of 2014 and $8.5 million for the first quarter of 2015.  Deposit service charge revenue was $11.5 million for the second quarter of 2015, compared with $12.4 million for the second quarter of 2014 and $11.3 million for the first quarter of 2015.  Insurance commission revenue was $29.3 million for the second quarter of 2015, compared with $28.6 million for the second quarter of 2014 and $33.5 million for the first quarter of 2015.  Wealth management revenue was $5.5 million for the second quarter of 2015, compared with $5.8 million for the second quarter of 2014 and $6.2 million for the first quarter of 2015.

Noninterest Expense

Noninterest expense for the second quarter of 2015 was $128.2 million, compared with $128.0 million for the second quarter of 2014 and $136.9 million for the first quarter of 2015.  Salaries and employee benefits expense was $79.8 million for the second quarter of 2015 compared to $74.7 million for the second quarter of 2014 and $81.2 million for the first quarter of 2015.  Both the first and second quarters of 2015 reflect an increase in pension expense compared with the same quarters from the prior year.  Total annual pension expense for 2015 is expected to be approximately $7 million higher than 2014 due to annual revisions to actuarial assumptions, including updates to the Society of Actuaries pension plan mortality tables.  Foreclosed property expense was $1.6 million for the second quarter of 2015 compared with $4.2 million for the second quarter of 2014 and $2.0 million for the first quarter of 2015.  Deposit insurance assessments were $2.4 million for the second quarter of 2015 compared to $2.0 million for the second quarter of 2014 and $2.3 million for the first quarter of 2015.  During the first quarter of 2015, the Company incurred expense of $5.5 million to increase its litigation accrual for probable losses related to certain ongoing legal matters.

Capital Management

The Company's equity capitalization is comprised entirely of common stock.  BancorpSouth's ratio of shareholders' equity to assets was 12.32 percent at June 30, 2015, compared with 12.24 percent at June 30, 2014 and 12.07 percent at March 31, 2015.  The ratio of tangible shareholders' equity to tangible assets was 10.26 percent at June 30, 2015, compared with 10.03 percent at June 30, 2014 and 9.99 percent at March 31, 2015.

Estimated regulatory capital ratios at June 30, 2015 were calculated in accordance with the Basel III capital framework.  BancorpSouth is a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 12.81 percent at June 30, 2015 and total risk based capital of 14.04 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, for "well capitalized" classification.

Transaction Closings and Announcements

On January 8, 2014, the Company announced the signing of a definitive merger agreement with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as "OIB"), headquartered in Monroe, Louisiana, pursuant to which Ouachita Bancshares Corp. will be merged with and into the Company.  OIB operates 11 full-service banking offices along the I-20 corridor and has a loan production office in Madison, Mississippi.  As of June 30, 2015, OIB, on a consolidated basis, reported total assets of $654.2 million, total loans of $463.2 million and total deposits of $543.0 million.  Under the terms of the definitive agreement, the Company will issue approximately 3,675,000 shares of the Company's common stock plus $22.875 million in cash for all outstanding shares of Ouachita Bancshares Corp.'s capital stock, subject to certain conditions and potential adjustments.  The merger has been unanimously approved by the Board of Directors of each company and was approved by OIB shareholders on April 8, 2014.  On February 25, 2015, the Company re-filed the merger application for the merger with Ouachita Bancshares Corp. with the appropriate regulatory agencies.  On June 30, 2015, the Company announced the merger agreement was extended through December 31, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions.  The terms of the amended agreement provide for a minimum total deal value of $111.1 million but also allow Ouachita Bancshares Corp. to terminate the agreement if the average closing price of the Company's common stock declines below a certain threshold prior to closing.  The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

On January 21, 2014, the Company announced the signing of a definitive merger agreement with Central Community Corporation, headquartered in Temple, Texas, pursuant to which Central Community Corporation will be merged with and into the Company.  Central Community Corporation is the parent company of First State Bank Central Texas ("First State Bank"), which is headquartered in Austin, Texas.  First State Bank operates 31 full-service banking offices in central Texas.  As of June 30, 2015, Central Community Corporation, on a consolidated basis, reported total assets of $1.4 billion, total loans of $604.2 million and total deposits of $1.2 billion.  Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company's common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation's capital stock, subject to certain conditions and potential adjustments.  The merger has been unanimously approved by the Board of Directors of each company and was approved by Central Community Corporation shareholders on April 24, 2014.  On February 25, 2015, the Company re-filed the merger application for the merger with Central Community Corporation with the appropriate regulatory agencies.  On June 30, 2015, the Company announced the merger agreement was extended through December 31, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions.  The terms of the amended agreement provide for a minimum total deal value of $202.5 million but also allow Central Community Corporation to terminate the agreement if the average closing price of the Company's common stock declines below a certain threshold prior to closing.  The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

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

Summary

Rollins concluded, "I am pleased to see the hard work and commitment of our teammates continue to drive better operating performance.  Each quarter, we are seeing different teams step up and produce significant levels of growth.  Our lending teams as well as our mortgage, insurance, and wealth management teams have contributed to meaningful revenue growth for our Company over the past several quarters.  We've been able produce this revenue growth while continuing to challenge expenses and improve our operating efficiency.  We are confident this simple approach will allow us to continue to improve performance going forward."

Conference Call

BancorpSouth will conduct a conference call to discuss its second quarter 2015 results on July 21, 2015, 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 $13.6 billion in assets.  BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 284 commercial banking, mortgage, and insurance locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.                                                            

Forward-Looking Statements

Certain statements contained in this news release may not be based upon historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "could," "estimate," "expect," "foresee," "hope," "intend," "may," "might," "plan," "will," or "would" or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the terms, timing and closings of the proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program, the findings and results of the joint investigation by the Consumer Financial Protection Bureau (the "CFPB") and the United States Department of Justice ("DOJ") of the Company's fair lending practices, the acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company's products and services if the proposed mergers close, the outcome of any instituted, pending or threatened material litigation, amortization expense for intangible assets, goodwill impairments, loan impairment, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue, fair value determinations, the amount of the Company's non-performing loans and leases, additions to OREO, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, continued weakness in the economic environment, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company's reserve for losses from representation and warranty obligations, the Company's foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, calculation of economic value of equity, impaired loan charge-offs, troubled debt restructurings, diversification of the Company's revenue stream, liquidity needs and strategies, sources of funding, net interest margin, declaration and payment of dividends, cost saving initiatives, improvement in the Company's efficiencies, operating expense trends, future acquisitions and consideration to be used therefor, the impact of litigation regarding debit card fees and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters.

The Company cautions readers not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors. These factors may include, but are not limited to, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program, the findings and results of the CFPB and the DOJ in their review of the Company's fair lending practices, the ability of the Company, Ouachita Bancshares Corp. and Central Community Corporation to obtain regulatory approval of and close the proposed mergers, the potential impact upon the Company of the delay in the closings of these proposed mergers, the impact of any ongoing, pending or threatened litigation, administrative and investigatory matters involving the Company, conditions in the financial markets and economic conditions generally, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company's OREO, limitations on the Company's ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Act, and supervision of the Company's operations, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic and environmental conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of the loss of any key Company personnel, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the Company's ability to adapt its products and services to evolving industry standards and consumer preferences, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company's growth strategy, interruptions or breaches in the Company's information system security, the failure of certain third-party vendors to perform, unfavorable ratings by rating agencies, dilution caused by the Company's issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, other factors generally understood to affect the assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies and other factors detailed from time to time in the Company's press and news releases, reports and other filings with the SEC.  Forward-looking statements speak only as of the date that they were made, and, except as required by law, the Company does not undertake any obligation to update or revise forward-looking statements to reflect events or circumstances that occur after the date of this news release.

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

6/30/2015

3/31/2015

12/31/2014

9/30/2014

6/30/2014

Earnings Summary:

Interest revenue

$            114,630

$             113,497

$            114,237

$            113,922

$            111,499

Interest expense

7,321

7,424

7,792

8,309

8,418

Net interest revenue

107,309

106,073

106,445

105,613

103,081

Provision for credit losses

(5,000)

(5,000)

-

-

-

Net interest revenue, after provision

   for credit losses

112,309

111,073

106,445

105,613

103,081

Noninterest revenue

74,314

73,315

63,513

69,278

69,838

Noninterest expense

128,177

136,933

130,046

133,699

127,954

Income before income taxes

58,446

47,455

39,912

41,192

44,965

Income tax expense

18,733

15,189

11,252

12,414

14,097

Net income

$              39,713

$               32,266

$              28,660

$              28,778

$              30,868

Balance Sheet - Period End Balances

Total assets

$       13,634,931

$        13,630,322

$       13,326,369

$       13,071,557

$       12,985,887

Total earning assets

12,492,532

12,468,322

12,163,897

11,929,416

11,794,445

Total securities

2,251,153

2,194,373

2,156,927

2,211,462

2,332,192

Loans and leases, net of unearned income

10,007,571

9,726,970

9,712,936

9,510,542

9,311,661

Allowance for credit losses

138,312

136,660

142,443

143,950

147,132

Total deposits

11,134,961

11,252,654

10,972,339

10,701,537

10,670,414

Long-term debt

73,962

76,055

78,148

81,742

83,835

Total shareholders' equity

1,680,196

1,645,208

1,606,059

1,610,543

1,588,850

Balance Sheet - Average Balances

Total assets

$       13,516,546

$        13,457,668

$       13,131,130

$       12,987,103

$       12,933,879

Total earning assets

12,443,960

12,398,058

12,038,265

11,892,493

11,825,994

Total securities

2,211,931

2,190,989

2,180,000

2,272,114

2,394,045

Loans and leases, net of unearned income

9,868,318

9,670,987

9,579,059

9,393,709

9,232,743

Total deposits

11,148,246

11,126,210

10,802,194

10,662,841

10,650,077

Long-term debt

73,962

76,078

79,387

81,742

83,967

Total shareholders' equity

1,659,991

1,624,496

1,613,239

1,600,721

1,574,588

Nonperforming Assets:

Non-accrual loans and leases

$              67,766

$               54,418

$              58,052

$              54,612

$              64,533

Loans and leases 90+ days past due, still accruing

1,568

1,615

2,763

1,925

2,406

Restructured loans and leases, still accruing

10,109

5,433

10,920

12,398

6,712

Non-performing loans (NPLs)

79,443

61,466

71,735

68,935

73,651

Other real estate owned

24,299

27,889

33,984

42,691

55,253

Non-performing assets (NPAs)

$            103,742

$               89,355

$            105,719

$            111,626

$            128,904

Financial Ratios and Other Data:

Return on average assets

1.18%

0.97%

0.87%

0.88%

0.96%

Return on average shareholders' equity

9.60%

8.06%

7.05%

7.13%

7.86%

Return on tangible equity

11.66%

9.84%

8.81%

8.83%

9.74%

Pre-tax pre-provision return on average assets

1.59%

1.29%

1.21%

1.26%

1.39%

Noninterest income to average assets

2.21%

2.21%

1.92%

2.12%

2.17%

Noninterest expense to average assets

3.80%

4.13%

3.93%

4.08%

3.97%

Net interest margin-fully taxable equivalent

3.54%

3.56%

3.60%

3.62%

3.59%

Net interest rate spread

3.44%

3.46%

3.49%

3.50%

3.48%

Efficiency ratio (tax equivalent)

69.52%

75.17%

75.25%

75.19%

72.76%

Loan/deposit ratio

89.88%

86.44%

88.52%

88.87%

87.27%

Price to earnings mult (avg)

18.80

18.43

18.45

16.64

21.00

Market value to book value

148.34%

136.26%

134.91%

120.13%

148.53%

Market value to book value (avg)

142.10%

127.91%

130.16%

129.54%

143.72%

Market value to tangible book value

182.42%

168.52%

167.95%

149.58%

185.73%

Market value to tangible book value (avg)

174.75%

158.20%

162.04%

161.30%

179.75%

Headcount FTE

3,935

3,924

3,948

3,938

3,981

Credit Quality Ratios:

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

(0.27%)

0.03%

0.06%

0.13%

0.11%

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

(0.20%)

(0.21%)

0.00%

0.00%

0.00%

Allowance for credit losses to net loans and leases

1.38%

1.40%

1.47%

1.51%

1.58%

Allowance for credit losses to non-performing loans and leases

174.10%

222.33%

198.57%

208.82%

199.77%

Allowance for credit losses to non-performing assets

133.32%

152.94%

134.74%

128.96%

114.14%

Non-performing loans and leases to net loans and leases

0.79%

0.63%

0.74%

0.72%

0.79%

Non-performing assets to net loans and leases

1.04%

0.92%

1.09%

1.17%

1.38%

Equity Ratios:

Total shareholders' equity to total assets

12.32%

12.07%

12.05%

12.32%

12.24%

Tangible shareholders' equity to tangible assets

10.26%

9.99%

9.92%

10.14%

10.03%

Capital Adequacy:

Common  Equity Tier 1 capital

12.60%

12.60%

N/A

N/A

N/A

Tier 1 capital

12.81%

12.81%

13.26%

13.18%

13.09%

Total capital

14.04%

14.07%

14.52%

14.43%

14.35%

Tier 1 leverage capital

10.96%

10.71%

10.55%

10.47%

10.33%

   Estimated for current quarter

Common Share Data:

Basic earnings per share

$                  0.41

$                   0.33

$                  0.30

$                  0.30

$                  0.32

Diluted earnings per share

0.41

0.33

0.30

0.30

0.32

Cash dividends per share

0.08

0.08

0.08

0.08

0.05

Book value per share

17.37

17.04

16.69

16.77

16.54

Tangible book value per share

14.12

13.78

13.40

13.46

13.23

Market value per share (last)

25.76

23.22

22.51

20.14

24.57

Market value per share (high)

26.68

23.68

23.28

25.43

25.55

Market value per share (low)

22.83

19.64

19.22

20.11

22.16

Market value per share (avg)

24.68

21.80

21.72

21.72

23.78

Dividend payout ratio

18.25%

22.40%

25.17%

25.03%

15.56%

Total shares outstanding

96,755,530

96,544,502

96,254,903

96,065,021

96,046,057

Average shares outstanding - basic

96,625,794

96,359,885

96,173,000

96,052,260

96,034,475

Average shares outstanding - diluted

96,957,441

96,653,401

96,506,827

96,373,950

96,373,121

Yield/Rate:

(Taxable equivalent basis)

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

4.23%

4.31%

4.30%

4.36%

4.38%

Available-for-sale securities:

  Taxable

1.40%

1.54%

1.43%

1.42%

1.45%

  Tax-exempt

5.44%

5.40%

5.30%

5.37%

5.44%

Short-term investments

0.24%

0.22%

0.24%

0.22%

0.24%

  Total interest earning assets and revenue

3.78%

3.80%

3.85%

3.89%

3.88%

Deposits

0.23%

0.24%

0.25%

0.28%

0.28%

  Demand - interest bearing

0.19%

0.18%

0.18%

0.17%

0.17%

  Savings

0.12%

0.12%

0.12%

0.12%

0.12%

  Other time

0.79%

0.82%

0.87%

0.96%

0.97%

Short-term borrowings

0.11%

0.12%

0.11%

0.10%

0.09%

Total int bearing dep & s/t borrowings

0.31%

0.31%

0.33%

0.36%

0.37%

Junior subordinated debt

2.86%

2.84%

2.82%

2.81%

2.81%

Long-term debt

2.90%

2.88%

2.86%

2.85%

2.84%

  Total interest bearing liabilities and expense

0.34%

0.34%

0.36%

0.39%

0.40%

Interest bearing liabilities to interest earning assets

70.36%

71.13%

70.57%

71.07%

71.98%

Net interest tax equivalent adjustment

$                2,628

$                 2,653

$                2,736

$                2,810

$                2,860

 

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

Jun-15

Mar-15

Dec-14

Sep-14

Jun-14

(Dollars in thousands)

Assets

Cash and due from banks

$                183,541

$                199,337

$                204,231

$                169,226

$                201,196

Interest bearing deposits with other banks

34,438

360,469

153,019

70,408

44,949

Available-for-sale securities, at fair value

2,251,153

2,194,373

2,156,927

2,211,462

2,332,192

Loans and leases

10,041,455

9,761,555

9,749,540

9,546,250

9,347,429

  Less:  Unearned income

33,884

34,585

36,604

35,708

35,768

             Allowance for credit losses

138,312

136,660

142,443

143,950

147,132

Net loans and leases

9,869,259

9,590,310

9,570,493

9,366,592

9,164,529

Loans held for sale

199,370

186,510

141,015

137,005

105,643

Premises and equipment, net

303,837

305,335

304,943

307,497

310,515

Accrued interest receivable

41,065

42,933

41,985

42,311

40,697

Goodwill

291,498

291,498

291,498

291,498

291,498

Other identifiable intangibles

22,415

23,476

24,508

25,619

26,745

Bank owned life insurance

247,983

246,148

247,076

243,827

241,962

Other real estate owned

24,299

27,889

33,984

42,691

55,253

Other assets

166,073

162,044

156,690

163,421

170,708

Total Assets

$           13,634,931

$           13,630,322

$           13,326,369

$           13,071,557

$           12,985,887

Liabilities

Deposits:

  Demand:  Noninterest bearing

$             2,911,972

$             2,914,949

$             2,778,686

$             2,811,156

$             2,718,242

                  Interest bearing

4,881,469

4,979,710

4,868,054

4,498,275

4,511,760

  Savings

1,407,616

1,395,857

1,331,963

1,311,874

1,299,203

  Other time

1,933,904

1,962,138

1,993,636

2,080,232

2,141,209

Total deposits

11,134,961

11,252,654

10,972,339

10,701,537

10,670,414

Federal funds purchased and

    securities sold under agreement

    to repurchase

375,980

384,829

388,166

431,428

394,446

Short-term Federal Home Loan Bank borrowings

   and other short-term borrowing

92,500

1,500

3,500

2,000

2,000

Accrued interest payable

3,494

3,371

3,400

3,894

3,926

Junior subordinated debt securities

23,198

23,198

23,198

23,198

23,198

Long-term debt

73,962

76,055

78,148

81,742

83,835

Other liabilities

250,640

243,507

251,559

217,215

219,218

Total Liabilities

11,954,735

11,985,114

11,720,310

11,461,014

11,397,037

Shareholders' Equity

Common stock

241,889

241,361

240,637

240,165

240,118

Capital surplus

337,272

331,016

324,271

322,488

321,952

Accumulated other comprehensive loss

(41,288)

(37,033)

(43,686)

(15,513)

(15,040)

Retained earnings

1,142,323

1,109,864

1,084,837

1,063,403

1,041,820

Total Shareholders' Equity

1,680,196

1,645,208

1,606,059

1,610,543

1,588,850

Total Liabilities & Shareholders' Equity

$           13,634,931

$           13,630,322

$           13,326,369

$           13,071,557

$           12,985,887

 

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

Jun-15

Mar-15

Dec-14

Sep-14

Jun-14

(Dollars in thousands)

Assets

Cash and due from banks

$                152,792

$                132,734

$                166,941

$                155,876

$                157,813

Interest bearing deposits with other banks

212,634

426,792

165,713

120,707

145,530

Available-for-sale securities, at fair value

2,211,931

2,190,989

2,180,000

2,272,114

2,394,045

Loans and leases

9,903,034

9,706,941

9,615,125

9,430,043

9,269,469

  Less:  Unearned income

34,716

35,954

36,066

36,334

36,726

             Allowance for credit losses

140,483

141,299

143,842

146,592

149,676

Net loans and leases

9,727,835

9,529,688

9,435,217

9,247,117

9,083,067

Loans held for sale

151,077

109,291

113,493

105,964

53,676

Premises and equipment, net

305,335

305,277

306,630

309,373

313,012

Accrued interest receivable

38,268

39,279

39,034

38,758

38,291

Goodwill

291,498

291,498

291,498

291,498

293,082

Other identifiable intangibles

22,780

23,834

24,910

26,031

25,271

Bank owned life insurance

246,872

246,538

245,584

242,718

240,736

Other real estate owned

27,190

32,062

39,209

49,123

60,822

Other assets

128,334

129,686

122,901

127,824

128,534

Total Assets

$           13,516,546

$           13,457,668

$           13,131,130

$           12,987,103

$           12,933,879

Liabilities

Deposits:

  Demand:  Noninterest bearing

$             2,895,451

$             2,807,816

$             2,837,919

$             2,766,626

$             2,683,939

                  Interest bearing

4,899,467

4,985,577

4,617,998

4,480,008

4,492,495

  Savings

1,404,336

1,358,565

1,321,000

1,308,184

1,298,829

  Other time

1,948,992

1,974,252

2,025,277

2,108,023

2,174,814

Total deposits

11,148,246

11,126,210

10,802,194

10,662,841

10,650,077

Federal funds purchased and

    securities sold under agreement

    to repurchase

399,447

398,237

426,842

444,017

435,505

Short-term Federal Home Loan Bank borrowings

   and other short-term borrowing

6,555

3,056

2,261

6,489

3,621

Accrued interest payable

3,457

3,338

3,630

3,940

3,926

Junior subordinated debt securities

23,198

23,198

23,198

23,198

23,198

Long-term debt

73,962

76,078

79,387

81,742

83,967

Other liabilities

201,690

203,055

180,379

164,155

158,997

Total Liabilities

11,856,555

11,833,172

11,517,891

11,386,382

11,359,291

Shareholders' Equity

Common stock

241,540

240,992

240,436

240,123

240,071

Capital surplus

332,993

326,476

323,372

322,219

321,628

Accumulated other comprehensive loss

(38,534)

(39,529)

(22,747)

(14,827)

(16,663)

Retained earnings

1,123,992

1,096,557

1,072,178

1,053,206

1,029,552

Total Shareholders' Equity

1,659,991

1,624,496

1,613,239

1,600,721

1,574,588

Total Liabilities & Shareholders' Equity

$           13,516,546

$           13,457,668

$           13,131,130

$           12,987,103

$           12,933,879

 

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

Quarter Ended

YTD

Jun-15

Mar-15

Dec-14

Sep-14

Jun-14

Jun-15

Jun-14

INTEREST REVENUE:

Loans and leases

$  103,428

$  102,135

$   103,172

$  102,681

$   99,962

$ 205,563

$ 198,706

Deposits with other banks

126

236

101

68

87

362

363

Available-for-sale securities:

    Taxable

6,424

6,844

6,429

6,646

7,133

13,268

14,680

    Tax-exempt

3,335

3,377

3,471

3,607

3,669

6,712

7,384

Loans held for sale

1,317

905

1,064

920

648

2,222

965

        Total interest revenue

114,630

113,497

114,237

113,922

111,499

228,127

222,098

INTEREST EXPENSE:

Interest bearing demand

2,262

2,183

2,070

1,956

1,905

4,445

3,825

Savings

426

412

411

410

402

838

793

Other time

3,827

4,008

4,453

5,083

5,249

7,835

11,139

Federal funds purchased and securities sold

   under agreement to repurchase

85

82

89

84

80

167

158

Long-term debt

556

577

603

612

619

1,133

1,248

Junior subordinated debt

165

163

165

164

162

328

330

Other

-

(1)

1

-

1

(1)

1

        Total interest expense

7,321

7,424

7,792

8,309

8,418

14,745

17,494

        Net interest revenue

107,309

106,073

106,445

105,613

103,081

213,382

204,604

  Provision for credit losses

(5,000)

(5,000)

-

-

-

(10,000)

-

        Net interest revenue, after provision for

          credit losses

112,309

111,073

106,445

105,613

103,081

223,382

204,604

NONINTEREST REVENUE:

Mortgage lending

14,102

8,567

3,250

6,938

9,089

22,669

12,483

Credit card, debit card and merchant fees

9,298

8,539

9,921

8,972

8,567

17,837

16,410

Deposit service charges

11,527

11,252

12,538

13,111

12,437

22,779

24,973

Security gains (losses), net

41

14

18

18

5

55

1

Insurance commissions

29,319

33,493

25,376

29,246

28,621

62,812

60,220

Wealth Management

5,508

6,210

5,826

5,961

5,828

11,718

11,951

Other

4,519

5,240

6,584

5,032

5,291

9,759

10,317

        Total noninterest revenue

74,314

73,315

63,513

69,278

69,838

147,629

136,355

NONINTEREST EXPENSE:

Salaries and employee benefits

79,759

81,179

76,751

77,453

74,741

160,938

153,624

Occupancy, net of rental income

10,419

10,194

10,500

10,313

10,245

20,613

20,532

Equipment

4,024

3,974

3,996

4,205

4,169

7,998

8,668

Deposit insurance assessments

2,377

2,311

2,430

2,125

2,035

4,688

3,635

Other

31,598

39,275

36,369

39,603

36,764

70,873

68,202

        Total noninterest expenses

128,177

136,933

130,046

133,699

127,954

265,110

254,661

        Income before income taxes

58,446

47,455

39,912

41,192

44,965

105,901

86,298

Income tax expense

18,733

15,189

11,252

12,414

14,097

33,922

26,986

        Net income

$    39,713

$   32,266

$     28,660

$    28,778

$   30,868

$  71,979

$  59,312

Net income per share: Basic

$       0.41

$       0.33

$        0.30

$       0.30

$       0.32

$      0.75

$      0.62

                                  Diluted

$       0.41

$       0.33

$        0.30

$       0.30

$       0.32

$      0.74

$      0.62

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Jun-15

Mar-15

Dec-14

Sep-14

Jun-14

LOAN AND LEASE PORTFOLIO:

Commercial and industrial

$  1,730,142

$ 1,676,366

$ 1,746,486

$ 1,714,012

$ 1,699,803

Real estate

   Consumer mortgages

2,374,122

2,301,112

2,257,726

2,191,265

2,071,503

   Home equity

558,460

538,042

531,374

518,263

506,988

   Agricultural

239,884

236,898

239,616

242,023

238,003

   Commercial and industrial-owner occupied

1,596,244

1,518,153

1,522,536

1,508,679

1,505,679

   Construction, acquisition and development

860,407

892,730

853,623

819,636

772,162

   Commercial real estate

2,081,394

1,993,473

1,961,977

1,916,577

1,901,759

Credit cards

110,552

106,287

113,426

109,464

109,186

All other

456,366

463,909

486,172

490,623

506,578

     Total loans

$ 10,007,571

$ 9,726,970

$ 9,712,936

$ 9,510,542

$ 9,311,661

ALLOWANCE FOR CREDIT LOSSES:

Balance, beginning of period

$     136,660

$   142,443

$    143,950

$   147,132

$   149,704

Loans and leases charged-off:

Commercial and industrial

(1,436)

(383)

(1,179)

(306)

(860)

Real estate

   Consumer mortgages

(575)

(892)

(900)

(1,510)

(1,682)

   Home equity

(245)

(498)

(93)

(510)

(438)

   Agricultural

-

(8)

(4)

(47)

(18)

   Commercial and industrial-owner occupied

(404)

(394)

(220)

(1,229)

(936)

   Construction, acquisition and development

(272)

(343)

(566)

(1,458)

(41)

   Commercial real estate

(1,117)

(1,007)

(463)

(70)

(361)

Credit cards

(527)

(676)

(580)

(612)

(608)

All other

(441)

(579)

(847)

(743)

(671)

     Total loans charged-off

(5,017)

(4,780)

(4,852)

(6,485)

(5,615)

Recoveries:

Commercial and industrial

282

502

298

565

359

Real estate

   Consumer mortgages

1,024

612

821

952

956

   Home equity

185

241

102

157

182

   Agricultural

36

269

16

45

26

   Commercial and industrial-owner occupied

146

550

216

460

78

   Construction, acquisition and development

8,978

604

897

392

808

   Commercial real estate

600

720

623

286

226

Credit cards

183

153

160

116

135

All other

235

346

212

330

273

     Total recoveries

11,669

3,997

3,345

3,303

3,043

Net recoveries (charge-offs)

6,652

(783)

(1,507)

(3,182)

(2,572)

Provision charged to operating expense

(5,000)

(5,000)

-

-

-

Balance, end of period

$ 138,312

$   136,660

$    142,443

$   143,950

$   147,132

Average loans for period

$ 9,868,318

$ 9,670,987

$ 9,579,059

$ 9,393,709

$ 9,232,743

Ratio:

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

(0.27%)

0.03%

0.06%

0.13%

0.11%

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

Quarter Ended

Jun-15

Mar-15

Dec-14

Sep-14

Jun-14

NON-PERFORMING ASSETS

NON-PERFORMING LOANS AND LEASES:

  Nonaccrual Loans and Leases

    Commercial and industrial

$      9,740

$         3,923

$         3,934

$      2,786

$         2,917

    Real estate

       Consumer mortgages

21,636

21,435

23,668

23,408

24,355

       Home equity

3,550

2,269

2,253

2,073

2,116

       Agricultural

259

259

291

638

595

       Commercial and industrial-owner occupied

14,007

9,687

11,190

7,495

11,094

       Construction, acquisition and development

5,411

5,111

4,162

6,070

9,202

       Commercial real estate

12,397

11,107

11,915

11,102

13,406

    Credit cards

157

118

133

168

132

    All other

609

509

506

872

716

         Total nonaccrual loans and leases

$    67,766

$       54,418

$       58,052

$    54,612

$       64,533

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

    Commercial and industrial

$          20

$             30

$             41

$          60

$            302

    Real estate

       Consumer mortgages

1,022

1,256

1,828

1,590

1,607

       Home equity

141

-

-

20

116

       Agricultural

-

-

-

-

100

       Commercial and industrial-owner occupied

14

-

39

-

-

       Construction, acquisition and development

-

-

387

-

-

       Commercial real estate

-

-

137

-

-

    Credit cards

342

329

327

255

281

    All other

29

-

4

-

-

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

1,568

1,615

2,763

1,925

2,406

  Restructured Loans and Leases, Still Accruing

10,109

5,433

10,920

12,398

6,712

     Total non-performing loans and leases

79,443

61,466

71,735

68,935

73,651

OTHER REAL ESTATE OWNED:

24,299

27,889

33,984

42,691

55,253

Total Non-performing Assets

$  103,742

$       89,355

$      105,719

$  111,626

$      128,904

Additions to Nonaccrual Loans and Leases During the Quarter

$    35,315

$       23,607

$       21,952

$    16,707

$       13,748

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

    Commercial and industrial

$      3,081

$         3,270

$         2,319

$      3,753

$         3,605

    Real estate

       Consumer mortgages

10,622

9,955

11,412

13,013

11,448

       Home equity

2,527

2,594

2,047

1,315

960

       Agricultural

116

161

366

190

1,122

       Commercial and industrial-owner occupied

2,643

3,026

912

2,364

6,340

       Construction, acquisition and development

1,120

5,471

4,811

1,036

1,616

       Commercial real estate

1,651

3,032

1,510

926

1,658

    Credit cards

529

581

739

602

556

    All other

1,481

1,014

1,698

1,196

1,490

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

$    23,770

$       29,104

$       25,814

$    24,395

$       28,795

Credit Quality Ratios:

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

(0.20%)

(0.21%)

0.00%

0.00%

0.00%

Allowance for credit losses to net loans and leases

1.38%

1.40%

1.47%

1.51%

1.58%

Allowance for credit losses to non-performing loans and leases

174.10%

222.33%

198.57%

208.82%

199.77%

Allowance for credit losses to non-performing assets

133.32%

152.94%

134.74%

128.96%

114.14%

Non-performing loans and leases to net loans and leases

0.79%

0.63%

0.74%

0.72%

0.79%

Non-performing assets to net loans and leases

1.04%

0.92%

1.09%

1.17%

1.38%

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

June 30, 2015

Special

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

Commercial and industrial

$ 1,688,364

$            695

$       33,809

$        107

$                -

$    7,167

$   1,730,142

Real estate

   Consumer mortgages

2,288,980

-

81,312

226

-

3,604

2,374,122

   Home equity

547,169

-

9,480

-

-

1,811

558,460

   Agricultural

232,626

-

7,258

-

-

-

239,884

   Commercial and industrial-owner occupied

1,538,436

-

47,991

233

-

9,584

1,596,244

   Construction, acquisition and development

826,039

-

30,309

444

-

3,615

860,407

   Commercial real estate

2,016,614

-

55,452

295

-

9,033

2,081,394

Credit cards

110,552

-

-

-

-

-

110,552

All other

443,484

-

12,583

-

-

299

456,366

     Total loans

$ 9,692,264

$            695

$      278,194

$      1,305

$                -

$  35,113

$ 10,007,571

March 31, 2015

Special

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

Commercial and industrial

$ 1,642,264

$            961

$       31,202

$          99

$                -

$    1,840

$   1,676,366

Real estate

   Consumer mortgages

2,218,792

-

78,928

227

-

3,165

2,301,112

   Home equity

527,726

-

9,706

-

-

610

538,042

   Agricultural

225,990

-

10,908

-

-

-

236,898

   Commercial and industrial-owner occupied

1,457,229

-

54,801

242

-

5,881

1,518,153

   Construction, acquisition and development

851,938

-

37,303

329

-

3,160

892,730

   Commercial real estate

1,923,659

-

59,497

300

-

10,017

1,993,473

Credit cards

106,287

-

-

-

-

-

106,287

All other

451,174

-

12,571

-

-

164

463,909

     Total loans

$ 9,405,059

$            961

$      294,916

$      1,197

$                -

$  24,837

$   9,726,970

 

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)

June 30, 2015

Alabama

and Florida

Panhandle

Arkansas

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:

Commercial and industrial

$   204,492

$   242,960

$   223,437

$   558,152

$     81,380

$   132,576

$   261,777

$     25,368

$  1,730,142

Real estate

   Consumer mortgages

216,904

290,517

195,055

781,620

69,791

243,264

381,966

195,005

2,374,122

   Home equity

76,832

40,315

58,910

216,732

21,724

134,093

8,717

1,137

558,460

   Agricultural

6,177

70,084

28,903

73,413

2,942

12,269

46,030

66

239,884

   Commercial and industrial-owner occupied

178,562

192,245

187,334

596,559

58,108

163,451

209,016

10,969

1,596,244

   Construction, acquisition and development

120,525

100,107

83,103

224,127

19,593

150,280

133,290

29,382

860,407

   Commercial real estate

302,727

345,327

245,432

502,630

201,763

185,194

230,854

67,467

2,081,394

Credit cards

-

-

-

-

-

-

-

110,552

110,552

All other

29,618

36,406

25,019

198,509

2,322

32,805

36,230

95,457

456,366

     Total loans

$ 1,135,837

$ 1,317,961

$ 1,047,193

$3,151,742

$   457,623

$ 1,053,932

$ 1,307,880

$   535,403

$ 10,007,571

NON-PERFORMING LOANS AND LEASES:

Commercial and industrial

$       1,211

$       4,012

$         472

$      1,959

$         191

$             -

$       2,903

$         124

$       10,872

Real estate

   Consumer mortgages

954

3,008

979

8,642

1,014

1,657

1,136

6,399

23,789

   Home equity

805

1,251

544

442

-

647

-

2

3,691

   Agricultural

79

30

14

77

-

59

-

-

259

   Commercial and industrial-owner occupied

368

5,659

983

9,829

822

505

288

4

18,458

   Construction, acquisition and development

468

733

-

1,625

1,666

2,556

-

1

7,049

   Commercial real estate

1,078

882

2,774

2,596

441

3,258

2,162

-

13,191

Credit cards

-

-

-

-

-

-

-

1,387

1,387

All other

-

201

170

181

-

194

-

1

747

     Total loans

$       4,963

$     15,776

$       5,936

$    25,351

$       4,134

$       8,876

$       6,489

$       7,918

$       79,443

NON-PERFORMING LOANS AND LEASES

   AS A PERCENTAGE OF OUTSTANDING:

Commercial and industrial

0.59%

1.65%

0.21%

0.35%

0.23%

0.00%

1.11%

0.49%

0.63%

Real estate

   Consumer mortgages

0.44%

1.04%

0.50%

1.11%

1.45%

0.68%

0.30%

3.28%

1.00%

   Home equity

1.05%

3.10%

0.92%

0.20%

0.00%

0.48%

0.00%

0.18%

0.66%

   Agricultural

1.28%

0.04%

0.05%

0.10%

0.00%

0.48%

0.00%

0.00%

0.11%

   Commercial and industrial-owner occupied

0.21%

2.94%

0.52%

1.65%

1.41%

0.31%

0.14%

0.04%

1.16%

   Construction, acquisition and development

0.39%

0.73%

0.00%

0.73%

8.50%

1.70%

0.00%

0.00%

0.82%

   Commercial real estate

0.36%

0.26%

1.13%

0.52%

0.22%

1.76%

0.94%

0.00%

0.63%

Credit cards

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

1.25%

1.25%

All other

0.00%

0.55%

0.68%

0.09%

0.00%

0.59%

0.00%

0.00%

0.16%

     Total loans

0.44%

1.20%

0.57%

0.80%

0.90%

0.84%

0.50%

1.48%

0.79%

 

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

June 30, 2015

Alabama

and Florida

Panhandle

Arkansas

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

OTHER REAL ESTATE OWNED:

Commercial and industrial

$          84

$                -

$                -

$            -

$                -

$             -

$           -

$           -

$          84

Real estate

   Consumer mortgages

213

30

25

1,599

-

71

110

-

2,048

   Home equity

-

-

-

101

-

-

-

-

101

   Agricultural

-

-

-

25

-

-

-

-

25

   Commercial and industrial-owner occupied

260

-

-

587

-

307

60

-

1,214

   Construction, acquisition and development

3,887

84

130

13,165

-

2,373

-

-

19,639

   Commercial real estate

170

-

-

714

-

122

63

-

1,069

All other

-

21

-

98

-

-

-

-

119

     Total loans

$      4,614

$            135

$            155

$    16,289

$                -

$      2,873

$       233

$           -

$    24,299

Quarter Ended

Jun-15

Mar-15

Dec-14

Sep-14

Jun-14

OTHER REAL ESTATE OWNED:

Balance, beginning of period

$    27,889

$       33,984

$       42,691

$    55,253

$       63,595

Additions to foreclosed properties

   New foreclosed property

1,730

2,804

2,257

3,476

4,144

Reductions in foreclosed properties

   Sales

(4,284)

(6,726)

(8,548)

(14,429)

(10,269)

   Writedowns

(1,036)

(2,173)

(2,416)

(1,609)

(2,217)

Balance, end of period

$    24,299

$       27,889

$       33,984

$    42,691

$       55,253

FORECLOSED PROPERTY EXPENSE

(Gain) Loss on sale of other real estate owned

$        204

$          (779)

$         1,643

$      3,289

$         1,073

Writedown of other real estate owned

1,036

2,173

2,416

1,609

2,217

Other foreclosed property expense

385

577

534

823

912

Total foreclosed property expense

$      1,625

$         1,971

$         4,593

$      5,721

$         4,202

 

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

Quarter Ended

Jun-15

Mar-15

Dec-14

Sep-14

Jun-14

NONINTEREST REVENUE:

Mortgage lending

$    14,102

$         8,567

$         3,250

$      6,938

$         9,089

Credit card, debit card and merchant fees

9,298

8,539

9,921

8,972

8,567

Deposit service charges

11,527

11,252

12,538

13,111

12,437

Securities gains, net

41

14

18

18

5

Insurance commissions

29,319

33,493

25,376

29,246

28,621

Trust income

3,543

4,036

3,791

3,537

3,624

Annuity fees

470

558

540

461

695

Brokerage commissions and fees

1,495

1,616

1,495

1,963

1,509

Bank-owned life insurance

1,835

1,899

3,249

1,865

1,885

Other miscellaneous income

2,684

3,341

3,335

3,167

3,406

     Total noninterest revenue

$    74,314

$       73,315

$       63,513

$    69,278

$       69,838

NONINTEREST EXPENSE:

Salaries and employee benefits

$    79,759

$       81,179

$       76,751

$    77,453

$       74,741

Occupancy, net of rental income

10,419

10,194

10,500

10,313

10,245

Equipment

4,024

3,974

3,996

4,205

4,169

Deposit insurance assessments

2,377

2,311

2,430

2,125

2,035

Amortization of bond issue cost

12

12

12

12

12

Advertising

1,686

781

1,233

1,192

1,331

Foreclosed property expense

1,625

1,971

4,593

5,721

4,202

Telecommunications

1,897

1,922

1,960

2,254

2,258

Public relations

653

570

770

950

857

Data processing

5,324

5,393

4,804

5,317

5,384

Computer software

2,690

2,606

2,763

2,488

2,851

Amortization of intangibles

1,061

1,032

1,111

1,126

1,148

Legal

1,998

7,681

2,322

2,620

3,002

Merger expense

4

(2)

4

188

1,010

Postage and shipping

1,194

1,172

1,239

1,103

1,116

Other miscellaneous expense

13,454

16,137

15,558

16,632

13,593

Total noninterest expense

$  128,177

$      136,933

$      130,046

$  133,699

$      127,954

INSURANCE COMMISSIONS:

Property and casualty commissions

$    21,145

$       20,673

$       19,007

$    22,746

$       21,576

Life and health commissions

6,202

5,412

5,521

5,128

5,549

Risk management income

637

666

621

708

617

Other

1,335

6,742

227

664

879

Total insurance commissions

$    29,319

$       33,493

$       25,376

$    29,246

$       28,621

 

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

Quarter Ended

Jun-15

Mar-15

Dec-14

Sep-14

Jun-14

MORTGAGE SERVICING RIGHTS:

Fair value, beginning of period

$     49,190

$       51,296

$       53,759

$     52,272

$       53,436

Additions to mortgage servicing rights:

   Originations of servicing assets

4,344

2,499

2,453

2,400

2,565

Changes in fair value:

   Due to payoffs/paydowns

(1,930)

(1,564)

(1,480)

(1,559)

(1,616)

   Due to change in valuation inputs or

     assumptions used in the valuation model

4,321

(3,039)

(3,434)

648

(2,111)

   Other changes in fair value

(1)

(2)

(2)

(2)

(2)

Fair value, end of period

$     55,924

$       49,190

$       51,296

$     53,759

$       52,272

Production revenue:

   Origination

$       7,395

$         8,914

$         3,949

$       3,736

$         8,758

   Servicing

4,316

4,256

4,215

4,113

4,058

   Payoffs/Paydowns

(1,930)

(1,564)

(1,480)

(1,559)

(1,616)

     Total production revenue

9,781

11,606

6,684

6,290

11,200

Market value adjustment

4,321

(3,039)

(3,434)

648

(2,111)

Total mortgage lending revenue

$     14,102

$         8,567

$         3,250

$       6,938

$         9,089

Mortgage loans serviced

$ 5,802,407

$   5,705,638

$   5,686,756

$ 5,649,897

$   5,630,192

MSR/mtg loans serviced

0.96%

0.86%

0.90%

0.95%

0.93%

AVAILABLE-FOR-SALE SECURITIES, at fair value

U.S. Government agencies

$ 1,336,846

$   1,286,981

$   1,215,054

$ 1,238,088

$   1,333,368

Government agency issued residential

   mortgage-back securities

217,191

200,381

209,230

218,748

229,414

Government agency issued commercial

   mortgage-back securities

224,450

227,409

240,568

237,325

237,321

Obligations of states and political subdivisions

458,322

471,539

483,864

509,304

520,897

Other

14,344

8,063

8,211

7,997

11,192

Total available-for-sale securities

$ 2,251,153

$   2,194,373

$   2,156,927

$ 2,211,462

$   2,332,192

 

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

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

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

Quarter ended

6/30/2015

3/31/2015

12/31/2014

9/30/2014

6/30/2014

Net income

$          39,713

$          32,266

$          28,660

$          28,778

$         30,868

Plus:

Provision for credit losses

(5,000)

(5,000)

-

-

-

Income tax expense

18,733

15,189

11,252

12,414

14,097

Pre-tax, pre-provision earnings

$          53,446

$          42,455

$          39,912

$          41,192

$         44,965

Net income

$          39,713

$          32,266

$          28,660

$          28,778

$         30,868

Plus:

Merger expense, net of tax

3

(1)

2

117

626

One time charge for BSA, net of tax

-

-

-

1,903

-

Net operating income

$          39,716

$          32,265

$          28,662

$          30,798

$         31,494

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

Reconciliation of Tangible Assets and Tangible Shareholders' Equity to 

Total Assets and Total Shareholders' Equity:

Quarter ended

6/30/2015

3/31/2015

12/31/2014

9/30/2014

6/30/2014

Tangible assets

Total assets

$    13,634,931

$    13,630,322

$    13,326,369

$    13,071,557

$   12,985,887

Less:  

Goodwill

291,498

291,498

291,498

291,498

291,498

Other identifiable intangible assets

22,415

23,476

24,508

25,619

26,745

Total tangible assets

$    13,321,018

$    13,315,348

$    13,010,363

$    12,754,440

$   12,667,644

Tangible shareholders' equity

Total shareholders' equity

$      1,680,196

$     1,645,208

$      1,606,059

$      1,610,543

$     1,588,850

Less:

Goodwill

291,498

291,498

291,498

291,498

291,498

Other identifiable intangible assets

22,415

23,476

24,508

25,619

26,745

Total tangible shareholders' equity

$      1,366,283

$     1,330,234

$      1,290,053

$      1,293,426

$     1,270,607

Total average assets

$    13,516,546

$    13,457,668

$    13,131,130

$    12,987,103

$   12,933,879

Total common shares outstanding

96,755,530

96,544,502

96,254,903

96,065,021

96,046,057

Average shares outstanding-diluted

96,957,441

96,653,401

96,506,827

96,373,950

96,373,121

Tangible shareholders' equity to tangible assets*

10.26%

9.99%

9.92%

10.14%

10.03%

Return on tangible equity **

11.66%

9.84%

8.81%

8.83%

9.74%

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

1.59%

1.29%

1.21%

1.26%

1.39%

Tangible book value per share****

$           14.12

$           13.78

$           13.40

$            13.46

$          13.23

Operating earnings per share*****

$             0.41

$             0.33

$             0.30

$              0.32

$            0.33

*

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

**

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

***

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

****

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

*****

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

 

 

SOURCE BancorpSouth, Inc.



RELATED LINKS

http://www.bancorpsouth.com