BANCORPSOUTH, INC. 
By TUPELO, Miss., Jan. 27, 2011 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended December 31, 2010. The Company had net income of $15.8 million, or $0.19 per diluted share, for the quarter compared with a net loss of $2.1 million, or $0.03 per diluted share, for the fourth quarter of 2009.
Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth, commented, "We are encouraged by the improvement in the Company's performance during the fourth quarter. While the credit market remains challenging, we experienced a 3.7% decline in non-performing loans, 30 - 89 day past due loans continued to decline, and we saw a decline in the provision for credit losses as required reserves for impaired loans declined and levels of adversely classified loans decreased. While we still have far to go to return to the level of financial performance we expect at BancorpSouth, we feel that we are moving in the right direction.
"The increase in earnings for the fourth quarter of 2010 compared with the net loss for the fourth quarter of 2009 primarily resulted from a $19.0 million, or 30.5 percent, decline in the provision for credit losses to $43.3 million for the fourth quarter of 2010 from $62.3 million for the fourth quarter of 2009. In addition, noninterest revenue increased $9.5 million, or 14.7 percent, for the fourth quarter of 2010 from the fourth quarter of 2009. Mortgage lending revenue, excluding the fair value adjustments to the Company's mortgage servicing rights (MSRs), increased 32.7% for the fourth quarter of 2010 compared to the same quarter of 2009, $9.2 million versus $7.0 million, respectively.
"Non-performing loans and leases (NPLs) declined to $394.4 million at December 31, 2010 from $409.4 million at September 30, 2010. This decrease was primarily attributable to a decrease in non-accrual construction, acquisition and development (CAD) loans of $17.5 million. This loan category has been the segment most significantly affected by the economic downturn, particularly those loans related to housing. This category has also accounted for over 60% of net charge-offs in 2010. As in prior quarters, the Company's NPLs remain concentrated in certain geographic areas. The Alabama, Nashville and Greater Memphis, Tennessee markets continue to be affected by the slow housing markets while several larger loans are reflected in our Missouri Region's NPLs."
Patterson added, "We believe that we remain appropriately reserved for losses inherent in our loan portfolio. At December 31, 2010, approximately 79 percent of our non-accrual loans had been determined to be collaterally dependent and had either been charged down or had a specific reserve to reflect values obtained from appraisals. Net of these write-downs and reserves, the remaining book balance of impaired loans was 67 percent of the unpaid principal balance. The allowance for credit losses not specifically allocated to impaired loans represented 211 percent of the remaining unimpaired non-accrual loan balance.
"BancorpSouth's pre-tax, pre-provision earnings for the fourth quarter of 2010 increased to $60.8 million from $53.5 million for the fourth quarter of 2009 and $56.3 million for the third quarter of 2010. We attribute the relative consistency of these operating results to the stability reflected in our net interest revenue, the strength of our mortgage production and servicing operations, effective cost management and the steadiness of the aggregate results from our other noninterest revenue streams.
"Based on this performance, we continue to be encouraged about BancorpSouth's ability to produce stronger financial results as our credit metrics continue to improve. While the improvement in our fourth quarter NPLs is an important step in returning to a more normalized level of financial performance, we realize that there is much work yet to be completed to realize that goal. We must build on this momentum in the quarters to come. We do not underestimate the challenges to returning our credit metrics to their historical levels, but with the progress achieved throughout 2010 and with continuing strong capital and liquidity, we enter 2011 confident that we are on the right path to achieve that goal."
Net Interest Revenue
Net interest revenue was $110.3 million for the fourth quarter of 2010, a decrease of 1.9 percent from $112.3 million for the fourth quarter of 2009 and a 0.5 percent increase from $109.7 million for the third quarter of 2010. The fully taxable equivalent net interest margin was 3.59 percent for the fourth quarter of 2010, compared with 3.81 percent for the fourth quarter of 2009 and 3.64 percent for the third quarter of 2010.
The Company continues to manage through the prolonged low interest rate environment very effectively. The decline in net interest margin for the fourth quarter of 2010 from the third quarter of 2010 was primarily the result of lower yields on the investment portfolio. Yields on loans have remained relatively stable, and overall rates on interest bearing liabilities have continued to decline. Weak loan demand continues to challenge growth in earning assets.
Asset, Deposit and Loan Activity
Total assets at December 31, 2010 were $13.6 billion, an increase of 3.4 percent compared with $13.2 billion at December 31, 2009. Total deposits were $11.5 billion at December 31, 2010, an increase of 7.6 percent from $10.7 billion at December 31, 2009. Loans and leases, net of unearned income, were $9.3 billion at December 31, 2010, a decrease of 4.5 percent from $9.8 billion at December 31, 2009.
The decline in loans and leases remained concentrated in the construction, acquisition and development loan portfolio, which decreased $311.3 million, or 21.3 percent, during 2010. Excluding the impact of the CAD loan portfolio, net loans and leases declined $130.7 million, or 1.6 percent, for the year ended December 31, 2010.
The significant growth in BancorpSouth's deposits during 2010 reflected an increase of 8.3 percent and 14.1 percent in noninterest bearing and interest bearing demand deposits, respectively, and a 19.0 percent increase in savings deposits. While the present economic environment has limited the Company's ability to invest this additional funding in loans, the Company has continued to capitalize on the opportunity to grow core deposits by both increasing new relationships and strengthening existing relationships.
Provision for Credit Losses and Allowance for Credit Losses
For the fourth quarter of 2010, the provision for credit losses was $43.3 million, compared with $62.3 million for the fourth quarter of 2009 and $54.9 million for the third quarter of 2010. Annualized net charge-offs were 2.19 percent of average loans and leases for the fourth quarter of 2010, compared with 1.27 percent for the fourth quarter of 2009 and 2.10 percent for the third quarter of 2010.
NPLs were $394.4 million, or 4.23 percent of net loans and leases, at December 31, 2010 compared to $186.5 million, or 1.91 percent of net loans and leases, at December 30, 2009 and $409.4 million, or 4.30 percent of net loans and leases, at September 30, 2010. The allowance for credit losses was 2.11 percent of net loans and leases at December 31, 2010 compared to 1.80 percent at December 30, 2009 and 2.16 percent at September 30, 2010.
Total NPLs at December 31, 2010 consisted of: $347.5 million of loans on nonaccrual status, virtually unchanged from $347.2 million at September 30, 2010; $8.5 million of loans 90 days or more past due and still accruing, a decrease from $9.9 million at September 30, 2010; and restructured loans still accruing of $38.4 million, a decrease from $52.3 million at September 30, 2010. Loans and leases 30 to 89 days past due decreased 18.2 percent to $60.4 million at December 31, 2010 from $73.8 million at September 30, 2010.
At the end of the fourth quarter of 2010, $111.9 million of NPLs were residential CAD loans, $89.5 million were other CAD loans, $74.1 million were commercial real estate mortgage loans and $56.3 million were consumer mortgages. NPLs from all other loan types totaled $62.6 million.
Other real estate owned increased during the fourth quarter to $133.4 million, compared to $59.3 million at December 31, 2009 and $82.6 million at September 30, 2010. This net increase from the third quarter reflected $62.7 million added through foreclosure, less sales of other real estate owned of $8.5 million, and write-downs in value of existing properties of $3.4 million.
Noninterest Revenue
Noninterest revenue was $74.0 million for the fourth quarter of 2010, compared with $64.5 million for the fourth quarter of 2009 and $69.8 million for the third quarter of 2010. This growth was primarily related to mortgage production and servicing operations. Mortgage origination volume was $452 million for the fourth quarter of 2010 and mortgage lending revenue was $18.1 million, which included an $8.9 million positive MSR fair value adjustment. For the fourth quarter of 2009, mortgage origination volume was $314 million and mortgage lending revenue was $8.6 million, including a $1.6 million positive MSR fair value adjustment, and for the third quarter of 2010, mortgage origination volume was $490 million and mortgage lending revenue was $8.9 million, including a $4.6 million negative MSR fair value adjustment.
Noninterest revenue for the fourth quarter of 2010 from credit and debit card fees and trust income increased on a comparable and sequential quarter basis. Insurance commission revenue increased from the comparable quarter in 2009, but declined $2.8 million from the third quarter of 2010, which was attributable to seasonality in that line of business. Service charge income declined $1.8 million from the third quarter of 2010 to $16.9 million as the first full quarter of mandated changes in overdraft regulations were in effect. The Company recorded a security loss of $0.5 million for the fourth quarter of 2010, compared with a loss of $0.1 million for the fourth quarter of 2009 and a gain of $2.3 million for the third quarter of 2010.
Noninterest Expense
Noninterest expense for the fourth quarter of 2010 was $123.4 million, unchanged from the fourth quarter of 2009 and comparable to $123.1 million for the third quarter of 2010. Included in these results, FDIC insurance expense was $5.9 million for the fourth quarter of 2010 compared with $3.8 million for the fourth quarter of 2009 and $4.8 million for the third quarter of 2010. Foreclosed property expense decreased to $6.1 million for the fourth quarter of 2010 from $6.3 million for the fourth quarter of 2009 and increased from $4.9 million for the third quarter of 2010. Salaries and employee benefits, net occupancy and equipment expenses for the fourth quarter of 2010 declined on both a comparable and sequential quarter basis.
Capital Management
BancorpSouth's commitment to a strong capital base is one of its fundamental strengths. The Company's equity capitalization is 100 percent common stock. BancorpSouth's ratio of shareholders' equity to assets was 8.98 percent at December 31, 2010, compared with 9.69 percent at December 31, 2009. The ratio of tangible equity to tangible assets was 7.00 percent at December 31, 2010, compared with 7.63 percent at December 31, 2009. BancorpSouth remains a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 10.61 percent at December 31, 2010 and total risk based capital of 11.87 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, to be classified as "well capitalized."
Summary
Patterson concluded, "After a most challenging year, BancorpSouth entered 2011 with strong capital and ample liquidity, a growing and demographically appealing eight-state franchise, a relatively attractive net interest margin and stable pre-tax, pre-provision earnings. While we expect to continue our primary focus on providing superior service to customers within our existing network, we have the expertise, financial resources and strategic clarity to leverage current industry turmoil and consolidation in support of our long-term growth objectives.
"Our challenges for 2011 are clear. With high unemployment and modest economic growth, we are cautious about our ability to expand our loan portfolio with high quality credits. In this environment, we are highly focused on continuing to work through any remaining credit issues to sustain the positive trends evident in our fourth quarter results.
"We believe BancorpSouth is well positioned strategically, especially if early indications of economic growth prove sustainable. Although uncertain about the strength of the economy in 2011, we are confident that we will continue to manage effectively and conservatively in the coming year, maintain a strong capital base and strong liquidity, remain appropriately reserved against losses inherent in our loan portfolio and build the value of our banking franchise."
Conference Call
BancorpSouth will conduct a conference call to discuss its fourth quarter 2010 results tomorrow, January 28, 2011, at 10:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com. A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.
Forward-Looking Statements
Certain statements contained in this news release may not be based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "may," "might," "will," "would," "could" or "intend." These forward-looking statements include, without limitation, statements relating to our financial performance, our reserve for losses, returning our credit metrics to historic levels, our ability to provide superior services to our customers, our economic growth, our ability to manage, our capital and liquidity, our ability to build the value of our franchise and our use of non-GAAP financial measures.
We caution you not to place undue reliance on the forward-looking statements contained in this news release in that actual results could differ materially from those indicated in such forward-looking statements because of a variety of factors. These factors may include, but are not limited to, conditions in the financial markets and economic conditions generally, the soundness of other financial institutions, levels of market volatility, the availability of capital if the Company elects or is compelled to seek additional capital, liquidity risk, the credit risk associated with real estate construction, acquisition and development loans, estimates of costs and values associated with real estate construction, acquisition and development loans in the Company's loan portfolio, the adequacy of the Company's allowance for credit losses to cover actual credit losses, governmental regulation and supervision of the Company's operations, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, the impact of hurricanes or other adverse weather events, risks in connection with completed or potential acquisitions, dilution caused by the Company's issuance of any additional shares of its common stock to acquire other banks, bank holding companies, financial holding companies and insurance agencies, restrictions on the Company's ability to declare and pay dividends, the Company's growth strategy, diversification in the types of financial services the Company offers, competition with other financial services companies, interruptions or breaches in security of the Company's information systems, the Company's ability to improve its internal controls adequately, any requirement that the Company write down goodwill or other intangible assets, other factors generally understood to affect the financial results of financial services companies, and other factors described from time to time in BancorpSouth's filings with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.6 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 312 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas. BancorpSouth Bank also operates an insurance location in Illinois.
BancorpSouth, Inc.
Selected Financial Data
-----------------------
Three Months Ended
December 31,
------------
2010 2009
---- ----
(Dollars in thousands, except per
share amounts)
Earnings Summary:
Net interest revenue $110,253 $112,347
Provision for credit losses 43,293 62,271
Noninterest revenue 73,974 64,505
Noninterest expense 123,447 123,361
------- -------
Income (loss) before income taxes 17,487 (8,780)
Income tax provision (benefit) 1,641 (6,634)
Net income (loss) $15,846 ($2,146)
======= =======
Earning (loss) per share: Basic $0.19 ($0.03)
===== ======
Diluted $0.19 ($0.03)
===== ======
Balance sheet data at December 31:
Total assets
Total earning assets
Loans and leases, net of unearned
income
Allowance for credit losses
Total deposits
Common shareholders' equity
Book value per share
Average balance sheet data:
Total assets $13,559,038 $13,065,172
Total earning assets 12,510,705 11,966,504
Loans and leases, net of unearned
interest 9,418,687 9,750,989
Total deposits 11,292,903 10,448,617
Common shareholders' equity 1,225,514 1,266,989
Non-performing assets at December
31:
Non-accrual loans and leases
Loans and leases 90+ days past due,
still accruing
Restructured loans and leases, still
accruing
Other real estate owned
Total non-performing assets
Net charge-offs as a percentage
of average loans (annualized) 2.19% 1.27%
Performance ratios (annualized):
Return on average assets 0.46% (0.07%)
Return on common equity 5.13% (0.67%)
Total shareholders' equity to total
assets 8.98% 9.69%
Tangible shareholders' equity to
tangible assets 7.00% 7.63%
Net interest margin 3.59% 3.81%
Average shares outstanding - basic 83,435,268 83,399,113
Average shares outstanding - diluted 83,471,420 83,527,596
Cash dividends per share $0.22 $0.22
Tier I capital 10.61% (1) 11.17%
Total Capital 11.87% (1) 12.42%
Tier I leverage capital 8.07% (1) 8.95%
(1) Estimated as of earnings
release date
Twelve Months Ended
December 31,
------------
2010 2009
---- ----
(Dollars in thousands, except per
share amounts)
Earnings Summary:
Net interest revenue $441,142 $444,899
Provision for credit losses 204,016 117,324
Noninterest revenue 264,144 275,276
Noninterest expense 487,033 490,017
------- -------
Income (loss) before income taxes 14,237 112,834
Income tax provision (benefit) (8,705) 30,105
Net income (loss) $22,942 $82,729
======= =======
Earning (loss) per share: Basic $0.28 $0.99
===== =====
Diluted $0.27 $0.99
===== =====
Balance sheet data at December 31:
Total assets $13,615,010 $13,167,867
Total earning assets 12,458,055 11,939,776
Loans and leases, net of unearned
income 9,333,107 9,775,136
Allowance for credit losses 196,913 176,043
Total deposits 11,490,021 10,677,702
Common shareholders' equity 1,222,244 1,276,296
Book value per share 14.64 15.29
Average balance sheet data:
Total assets $13,304,836 $13,203,659
Total earning assets 12,223,933 12,078,437
Loans and leases, net of unearned
interest 9,621,529 9,734,580
Total deposits 11,107,445 10,155,730
Common shareholders' equity 1,241,321 1,255,605
Non-performing assets at December
31:
Non-accrual loans and leases $347,499 $144,013
Loans and leases 90+ days past due,
still accruing 8,500 36,301
Restructured loans and leases, still
accruing 38,376 6,161
Other real estate owned 133,412 59,265
------- ------
Total non-performing assets 527,787 245,740
Net charge-offs as a percentage
of average loans (annualized) 1.90% 0.76%
Performance ratios (annualized):
Return on average assets 0.17% 0.63%
Return on common equity 1.85% 6.59%
Total shareholders' equity to total
assets 8.98% 9.69%
Tangible shareholders' equity to
tangible assets 7.00% 7.63%
Net interest margin 3.70% 3.77%
Average shares outstanding - basic 83,425,183 83,295,461
Average shares outstanding - diluted 83,515,040 83,430,505
Cash dividends per share $0.88 $0.88
Tier I capital 10.61% (1) 11.17%
Total Capital 11.87% (1) 12.42%
Tier I leverage capital 8.07% (1) 8.95%
(1) Estimated as of earnings
release date
BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
Dec-10 Sep-10 Jun-10
------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from
banks $99,916 $128,160 $370,499
Interest bearing
deposits with other
banks 172,170 211,189 111,040
Held-to-maturity
securities, at
amortized cost 1,613,019 1,357,888 1,147,157
Available-for-sale
securities, at fair
value 1,096,062 915,877 962,692
Federal funds sold
and securities
purchased under
agreement to resell 150,000 325,000 75,000
Loans and leases 9,376,351 9,556,962 9,691,623
Less: Unearned
income 43,244 42,033 44,721
Allowance for credit
losses 196,913 205,081 200,744
------- -------
Net loans and leases 9,136,194 9,309,848 9,446,158
Loans held for sale 93,697 125,815 95,987
Premises and
equipment, net 332,890 335,618 336,645
Accrued interest
receivable 61,025 63,797 63,862
Goodwill 270,097 270,097 270,097
Bank owned life
insurance 194,064 192,459 190,828
Other real estate
owned 133,412 82,647 67,560
Other assets 262,464 264,621 283,479
Total Assets $13,615,010 $13,583,016 $13,421,004
=========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest
bearing $2,060,145 $1,967,635 $1,897,977
Interest bearing 4,931,518 4,623,103 4,725,457
Savings 863,034 801,153 770,112
Other time 3,635,324 3,804,973 3,827,095
Total deposits 11,490,021 11,196,864 11,220,641
Federal funds
purchased and
securities sold
under agreement
to repurchase 440,593 501,175 481,109
Short-term Federal
Home Loan Bank
borrowings
and other short-
term borrowing 2,727 152,738 3,500
Accrued interest
payable 14,336 16,574 17,508
Junior subordinated
debt securities 160,312 160,312 160,312
Long-term Federal
Home Loan Bank
borrowings 110,000 110,000 110,749
Other liabilities 174,777 209,648 186,926
------- -------
Total Liabilities 12,392,766 12,347,311 12,180,745
Shareholders' Equity
--------------------
Common stock 208,704 208,704 208,704
Capital surplus 224,976 224,170 223,922
Accumulated other
comprehensive
income (loss) (14,453) (2,705) (5,008)
Retained earnings 803,017 805,536 812,641
Total Shareholders'
Equity 1,222,244 1,235,705 1,240,259
--------- ---------
Total Liabilities &
Shareholders'
Equity $13,615,010 $13,583,016 $13,421,004
=========== =========== ===========
Mar-10 Dec-09
------ ------
(Dollars in thousands)
Assets
------
Cash and due from banks $187,115 $222,741
Interest bearing
deposits with other
banks 9,943 15,704
Held-to-maturity
securities, at
amortized cost 1,219,983 1,032,822
Available-for-sale
securities, at fair
value 891,221 960,772
Federal funds sold and
securities
purchased under
agreement to resell 120,000 75,000
Loans and leases 9,756,081 9,822,986
Less: Unearned income 45,259 47,850
Allowance for credit
losses 188,884 176,043
------- -------
Net loans and leases 9,521,938 9,599,093
Loans held for sale 80,312 80,343
Premises and equipment,
net 339,860 343,877
Accrued interest
receivable 69,022 68,651
Goodwill 270,097 270,097
Bank owned life
insurance 189,022 187,770
Other real estate owned 59,269 59,265
Other assets 272,408 251,732
Total Assets $13,230,190 $13,167,867
=========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest
bearing $1,860,579 $1,901,663
Interest bearing 4,589,029 4,323,646
Savings 768,302 725,192
Other time 3,776,251 3,727,201
Total deposits 10,994,161 10,677,702
Federal funds purchased
and
securities sold under
agreement
to repurchase 480,795 539,870
Short-term Federal
Home Loan Bank
borrowings
and other short-term
borrowing 2,500 203,500
Accrued interest
payable 17,972 19,588
Junior subordinated
debt securities 160,312 160,312
Long-term Federal Home
Loan Bank borrowings 112,760 112,771
Other liabilities 196,806 177,828
------- -------
Total Liabilities 11,965,306 11,891,571
Shareholders' Equity
--------------------
Common stock 208,655 208,626
Capital surplus 223,307 222,547
Accumulated other
comprehensive income
(loss) (10,645) (8,409)
Retained earnings 843,567 853,532
Total Shareholders'
Equity 1,264,884 1,276,296
--------- ---------
Total Liabilities &
Shareholders' Equity $13,230,190 $13,167,867
=========== ===========
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended
-------------
Dec-10 Sep-10 Jun-10 Mar-10
------ ------ ------ ------
INTEREST
REVENUE:
Loans and
leases $121,672 $123,533 $124,621 $126,956
Deposits with
other banks 222 79 33 21
Federal funds
sold and
securities
purchased
under agreement
to resell 168 213 143 82
Held-to-
maturity
securities:
Taxable 8,490 9,010 9,363 9,415
Tax-exempt 2,952 2,584 2,412 2,461
Available-for-
sale
securities:
Taxable 7,836 7,782 8,030 8,385
Tax-exempt 815 795 833 832
Loans held for
sale 902 889 727 506
--- --- --- ---
Total interest
revenue 143,057 144,885 146,162 148,658
------- ------- ------- -------
INTEREST
EXPENSE:
Interest
bearing demand 7,462 8,582 9,751 9,392
Savings 891 881 915 889
Other time 19,827 21,108 21,535 21,529
Federal funds
purchased and
securities
sold
under agreement
to repurchase 189 209 215 228
FHLB borrowings 1,569 1,543 1,553 1,880
Junior
subordinated
debt 2,864 2,880 2,862 2,855
Other 2 4 2 3
--- --- --- ---
Total interest
expense 32,804 35,207 36,833 36,776
------ ------ ------ ------
Net interest
revenue 110,253 109,678 109,329 111,882
Provision for
credit losses 43,293 54,850 62,354 43,519
------ ------ ------ ------
Net interest
revenue, after
provision for
credit losses 66,960 54,828 46,975 68,363
------ ------ ------ ------
NONINTEREST
REVENUE:
Mortgage
lending 18,126 8,898 (2,304) 5,025
Credit card,
debit card and
merchant fees 9,951 9,569 9,333 8,810
Service charges 16,854 18,621 18,953 16,262
Trust income 3,072 2,783 2,707 2,587
Security gains
(losses), net (470) 2,327 (585) 1,297
Insurance
commissions 18,013 20,825 21,666 21,668
Other 8,428 6,729 7,316 7,683
----- ----- ----- -----
Total
noninterest
revenue 73,974 69,752 57,086 63,332
------ ------ ------ ------
NONINTEREST
EXPENSES:
Salaries and
employee
benefits 65,980 68,232 68,189 69,287
Occupancy, net
of rental
income 10,668 11,038 10,527 10,775
Equipment 5,459 5,523 5,877 5,739
Deposit
insurance
assessments 5,895 4,752 4,362 4,250
Other 35,445 33,542 31,061 30,432
------ ------ ------
Total
noninterest
expenses 123,447 123,087 120,016 120,483
------- ------- ------- -------
Income (loss)
before income
taxes 17,487 1,493 (15,955) 11,212
Income tax
expense
(benefit) 1,641 (9,767) (3,395) 2,816
----- ------
Net income
(loss) $15,846 $11,260 ($12,560) $8,396
======= ======= ======== ======
Net income
(loss) per
share: Basic $0.19 $0.13 ($0.15) $0.10
===== ===== ====== =====
Diluted $0.19 $0.13 ($0.15) $0.10
===== ===== ====== =====
Quarter Ended Year To Date
------------- ------------
Dec-09 Dec-10 Dec-09
------ ------ ------
INTEREST
REVENUE:
Loans
and
leases $129,086 $496,782 $517,013
Deposits
with
other
banks 19 355 131
Federal
funds
sold
and
securities
purchased
under
agreement
to
resell 43 606 74
Held-
to-
maturity
securities:
Taxable 10,128 36,278 46,957
Tax-
exempt 2,393 10,409 8,852
Available-
for-
sale
securities:
Taxable 8,675 32,033 35,026
Tax-
exempt 875 3,275 3,396
Loans
held
for
sale 777 3,024 3,965
--- ----- -----
Total
interest
revenue 151,996 582,762 615,414
------- ------- -------
INTEREST
EXPENSE:
Interest
bearing
demand 9,023 35,187 40,047
Savings 900 3,576 3,700
Other
time 23,445 83,999 101,308
Federal
funds
purchased
and
securities
sold
under
agreement
to
repurchase 305 841 1,629
FHLB
borrowings 3,012 6,545 11,597
Junior
subordinated
debt 2,863 11,461 11,630
Other 101 11 604
--- --- ---
Total
interest
expense 39,649 141,620 170,515
------ ------- -------
Net
interest
revenue 112,347 441,142 444,899
Provision
for
credit
losses 62,271 204,016 117,324
------ ------- -------
Net
interest
revenue,
after
provision
for
credit
losses 50,076 237,126 327,575
------ ------- -------
NONINTEREST
REVENUE:
Mortgage
lending 8,602 29,745 32,225
Credit
card,
debit
card
and
merchant
fees 7,883 37,663 34,244
Service
charges 18,689 70,690 72,864
Trust
income 3,014 11,149 9,698
Security
gains
(losses),
net (102) 2,569 (55)
Insurance
commissions 17,583 82,172 80,937
Other 8,836 30,156 45,363
----- ------ ------
Total
noninterest
revenue 64,505 264,144 275,276
------ ------- -------
NONINTEREST
EXPENSES:
Salaries
and
employee
benefits 66,926 271,688 278,734
Occupancy,
net of
rental
income 10,897 43,008 42,108
Equipment 5,578 22,598 23,508
Deposit
insurance
assessments 3,786 19,259 19,672
Other 36,174 130,480 125,995
Total
noninterest
expenses 123,361 487,033 490,017
------- ------- -------
Income
(loss)
before
income
taxes (8,780) 14,237 112,834
Income
tax
expense
(benefit) (6,634) (8,705) 30,105
------ ------
Net
income
(loss) ($2,146) $22,942 $82,729
======= ======= =======
Net
income
(loss)
per
share:
Basic ($0.03) $0.28 $0.99
====== ===== =====
Diluted ($0.03) $0.27 $0.99
====== ===== =====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-10 Sep-10 Jun-10
------ ------ ------
LOAN AND LEASE PORTFOLIO:
Commercial and industrial $1,491,183 $1,438,415 $1,483,335
Real estate
Consumer mortgages 1,978,145 2,001,077 2,019,187
Home equity 543,272 552,095 555,281
Agricultural 252,292 262,083 260,489
Commercial and industrial-
owner occupied 1,331,473 1,375,466 1,407,704
Construction, acquisition
and development 1,148,161 1,307,242 1,381,591
Commercial 1,816,951 1,810,626 1,794,644
Credit cards 106,345 102,672 102,784
All other 665,285 665,253 641,888
------- ------- -------
Total loans $9,333,107 $9,514,929 $9,646,903
---------- ---------- ----------
ALLOWANCE FOR CREDIT
LOSSES:
Balance, beginning of
period $205,081 $200,744 $188,884
Loans and leases charged
off:
Commercial and industrial (1,782) (2,822) (5,106)
Real estate
Consumer mortgages (8,809) (7,573) (4,659)
Home equity (1,138) (1,792) (602)
Agricultural (487) (33) (473)
Commercial and industrial-
owner occupied (1,659) (1,231) (3,845)
Construction, acquisition
and development (31,471) (34,342) (31,655)
Commercial (6,327) (2,887) (2,593)
Credit cards (990) (1,046) (1,363)
All other (2,093) (798) (2,067)
Total loans charged off (54,756) (52,524) (52,363)
------- ------- -------
Recoveries:
Commercial and industrial 707 318 242
Real estate
Consumer mortgages 423 143 818
Home equity 60 23 43
Agricultural 4 8 -
Commercial and industrial-
owner occupied 195 154 44
Construction, acquisition
and development 776 663 211
Commercial 707 98 27
Credit cards 143 317 219
All other 280 287 265
Total recoveries 3,295 2,011 1,869
----- ----- -----
Net charge-offs (51,461) (50,513) (50,494)
Provision charged to
operating expense 43,293 54,850 62,354
Other, net - - -
Balance, end of period $196,913 $205,081 $200,744
-------- -------- --------
Average loans for period $9,418,687 $9,601,142 $9,703,253
========== ========== ==========
Ratios:
Net charge-offs to average
loans (annualized) 2.19% 2.10% 2.08%
==== ==== ====
Quarter Ended
-------------
Mar-10 Dec-09
------ ------
LOAN AND LEASE PORTFOLIO:
Commercial and industrial $1,470,145 $1,466,569
Real estate
Consumer mortgages 2,014,085 2,017,067
Home equity 549,924 550,085
Agricultural 266,649 262,069
Commercial and industrial-
owner occupied 1,423,098 1,449,554
Construction, acquisition
and development 1,428,882 1,459,503
Commercial 1,809,660 1,806,766
Credit cards 101,464 108,086
All other 646,915 655,437
------- -------
Total loans $9,710,822 $9,775,136
---------- ----------
ALLOWANCE FOR CREDIT
LOSSES:
Balance, beginning of
period $176,043 $144,791
Loans and leases charged
off:
Commercial and industrial (2,169) (3,404)
Real estate
Consumer mortgages (4,598) (2,298)
Home equity (1,683) (1,835)
Agricultural (207) (401)
Commercial and industrial-
owner occupied (2,465) (753)
Construction, acquisition
and development (15,769) (20,766)
Commercial (2,278) (568)
Credit cards (1,160) (1,118)
All other (1,050) (954)
Total loans charged off (31,379) (32,097)
------- -------
Recoveries:
Commercial and industrial 63 194
Real estate
Consumer mortgages 64 209
Home equity 52 76
Agricultural - -
Commercial and industrial-
owner occupied 7 10
Construction, acquisition
and development 56 7
Commercial 12 25
Credit cards 150 216
All other 297 341
Total recoveries 701 1,078
--- -----
Net charge-offs (30,678) (31,019)
Provision charged to
operating expense 43,519 62,271
Other, net - -
Balance, end of period $188,884 $176,043
-------- --------
Average loans for period $9,767,088 $9,750,989
========== ==========
Ratios:
Net charge-offs to
average loans
(annualized) 1.26% 1.27%
==== ====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-10 Sep-10 Jun-10
------ ------ ------
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial $13,075 $12,339 $6,280
Real estate
Consumer mortgages 46,496 40,962 37,514
Home equity 811 1,361 1,565
Agricultural 7,589 4,986 3,972
Commercial and industrial-owner
occupied 20,338 15,004 12,061
Construction, acquisition and
development 199,072 216,586 159,829
Commercial 57,766 51,590 38,921
Credit cards 720 724 726
All other 1,632 3,629 2,890
----- ----- -----
Total nonaccrual loans and leases 347,499 347,181 263,758
------- ------- -------
Loans and Leases 90+ Days Past Due,
Still Accruing:
Commercial and industrial 675 1,571 7,093
Real estate
Consumer mortgages 6,521 6,241 4,754
Home equity 173 146 -
Agricultural 123 330 -
Commercial and industrial-owner
occupied 20 192 733
Construction, acquisition and
development 197 526 1,490
Commercial - 115 3,068
Credit cards 330 396 228
All other 461 393 330
--- --- ---
Total loans and leases 90+ past
due, still accruing 8,500 9,910 17,696
----- ----- ------
Restructured Loans and Leases,
Still Accruing 38,376 52,325 20,813
Total non-performing loans and
leases 394,375 409,416 302,267
------- ------- -------
OTHER REAL ESTATE OWNED: 133,412 82,647 67,560
------- ------ ------
Total Non-performing Assets $527,787 $492,063 $369,827
======== ======== ========
Loans and Leases 30-89 Days Past
Due, Still Accruing:
Commercial and industrial $13,654 $10,581 $10,081
Real estate
Consumer mortgages 19,147 22,490 30,286
Home equity 1,906 3,088 2,664
Agricultural 1,122 1,101 2,312
Commercial and industrial-owner
occupied 10,183 16,385 20,975
Construction, acquisition and
development 6,758 11,538 50,759
Commercial 3,823 4,657 8,084
Credit cards 1,023 799 1,220
All other 2,766 3,143 4,472
----- ----- -----
Total Loans and Leases 30-89 days
past due, still accruing $60,382 $73,782 $130,853
======= ======= ========
Credit Quality Ratios:
Provision for credit losses to
average loans and leases
(annualized) 1.84% 2.29% 2.57%
Allowance for credit losses to net
loans and leases 2.11% 2.16% 2.08%
Allowance for credit losses to non-
performing assets 37.31% 41.68% 54.28%
Allowance for credit losses to non-
performing loans and leases 49.93% 50.09% 66.41%
Non-performing loans and leases to
net loans and leases 4.23% 4.30% 3.13%
Non-performing assets to net loans
and leases 5.65% 5.17% 3.83%
Quarter Ended
-------------
Mar-10 Dec-09
------ ------
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial $6,306 $4,852
Real estate
Consumer mortgages 24,047 20,731
Home equity 761 1,642
Agricultural 3,049 1,136
Commercial and industrial-owner
occupied 15,083 7,039
Construction, acquisition and
development 116,191 82,170
Commercial 30,094 23,209
Credit cards 1,072 1,044
All other 3,034 2,190
----- -----
Total nonaccrual loans and leases 199,637 144,013
------- -------
Loans and Leases 90+ Days Past Due,
Still Accruing:
Commercial and industrial 1,405 1,797
Real estate
Consumer mortgages 10,984 9,905
Home equity 320 810
Agricultural 199 1,015
Commercial and industrial-owner
occupied 1,482 4,511
Construction, acquisition and
development 3,339 13,482
Commercial 1,671 2,558
Credit cards 296 355
All other 756 1,868
--- -----
Total loans and leases 90+ past
due, still accruing 20,452 36,301
------ ------
Restructured Loans and Leases,
Still Accruing 15,576 6,161
Total non-performing loans and
leases 235,665 186,475
------- -------
OTHER REAL ESTATE OWNED: 59,269 59,265
------ ------
Total Non-performing Assets $294,934 $245,740
======== ========
Loans and Leases 30-89 Days Past
Due, Still Accruing:
Commercial and industrial $17,248 $7,220
Real estate
Consumer mortgages 22,917 24,263
Home equity 2,568 2,000
Agricultural 3,814 1,010
Commercial and industrial-owner
occupied 21,798 29,186
Construction, acquisition and
development 58,385 39,795
Commercial 11,627 5,623
Credit cards 1,185 1,457
All other 3,240 3,061
----- -----
Total Loans and Leases 30-89 days
past due, still accruing $142,782 $113,615
======== ========
Credit Quality Ratios:
Provision for credit losses to
average loans and leases
(annualized) 1.78% 2.55%
Allowance for credit losses to net
loans and leases 1.95% 1.80%
Allowance for credit losses to non-
performing assets 64.04% 71.64%
Allowance for credit losses to non-
performing loans and leases 80.15% 94.41%
Non-performing loans and leases to
net loans and leases 2.43% 1.91%
Non-performing assets to net loans
and leases 3.04% 2.51%
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-10 Sep-10 Jun-10
------ ------ ------
REAL ESTATE CONSTRUCTION,
ACQUISITION
AND DEVELOPMENT ("CAD")
PORTFOLIO:
Outstanding Balance
Multi-family construction $27,992 $28,540 $22,091
One-to-four family
construction 191,972 210,861 229,629
Recreation and all other
loans 48,375 45,085 44,175
Commercial construction 173,557 239,099 245,700
Commercial acquisition and
development 250,658 260,787 270,413
Residential acquisition and
development 455,607 522,870 569,583
------- ------- -------
Total outstanding balance $1,148,161 $1,307,242 $1,381,591
========== ========== ==========
Nonaccrual CAD Loans
Multi-family construction $12,517 $10,668 $11,705
One-to-four family
construction 11,319 12,075 6,117
Recreation and all other
loans 481 1,020 685
Commercial construction 34,710 28,712 24,723
Commercial acquisition and
development 29,658 34,438 15,558
Residential acquisition and
development 110,387 129,673 101,041
------- ------- -------
Total nonaccrual CAD loans 199,072 216,586 159,829
------- ------- -------
CAD Loans 90+ Days Past Due,
Still Accruing:
Multi-family construction - - -
One-to-four family
construction - - 365
Recreation and all other
loans - - -
Commercial construction 195 - 141
Commercial acquisition and
development - 150 77
Residential acquisition and
development 2 376 907
--- --- ---
Total CAD loans 90+ past due,
still accruing 197 526 1,490
--- --- -----
Restructured CAD Loans, Still
Accruing
Multi-family construction - - -
One-to-four family
construction 63 417 1,072
Recreation and all other
loans - - -
Commercial construction - 2,244 -
Commercial acquisition and
development 604 1,735 460
Residential acquisition and
development 1,495 7,290 946
----- ----- ---
Total restructured CAD loans,
still accruing 2,162 11,686 2,478
----- ------ -----
Total Non-performing CAD
loans $201,431 $228,798 $163,797
======== ======== ========
CAD NPL as a % of Outstanding
CAD Balance
Multi-family construction 44.7% 37.4% 53.0%
One-to-four family
construction 5.9% 5.9% 3.3%
Recreation and all other
loans 1.0% 2.3% 1.6%
Commercial construction 20.1% 12.9% 10.1%
Commercial acquisition and
development 12.1% 13.9% 6.0%
Residential acquisition and
development 24.6% 26.3% 18.1%
Total CAD NPL as a % of
outstanding CAD balance 17.5% 17.5% 11.9%
Quarter Ended
-------------
Mar-10 Dec-09
------ ------
REAL ESTATE CONSTRUCTION,
ACQUISITION
AND DEVELOPMENT ("CAD")
PORTFOLIO:
Outstanding Balance
Multi-family construction $28,598 $25,009
One-to-four family
construction 242,209 255,026
Recreation and all other
loans 39,938 50,122
Commercial construction 236,111 240,917
Commercial acquisition and
development 280,630 282,766
Residential acquisition and
development 601,396 605,663
------- -------
Total outstanding balance $1,428,882 $1,459,503
========== ==========
Nonaccrual CAD Loans
Multi-family construction $9,071 $9,247
One-to-four family
construction 4,223 1,514
Recreation and all other
loans - -
Commercial construction 12,650 6,684
Commercial acquisition and
development 463 2,527
Residential acquisition and
development 89,783 62,198
------ ------
Total nonaccrual CAD loans 116,190 82,170
------- ------
CAD Loans 90+ Days Past Due,
Still Accruing:
Multi-family construction - -
One-to-four family
construction 748 1,535
Recreation and all other
loans 146 496
Commercial construction 16 -
Commercial acquisition and
development 678 4,500
Residential acquisition and
development 1,751 6,951
----- -----
Total CAD loans 90+ past
due, still accruing 3,339 13,482
----- ------
Restructured CAD Loans,
Still Accruing
Multi-family construction - -
One-to-four family
construction - -
Recreation and all other
loans - -
Commercial construction - 1,606
Commercial acquisition and
development - -
Residential acquisition and
development 3,234 -
----- ---
Total restructured CAD
loans, still accruing 3,234 1,606
----- -----
Total Non-performing CAD
loans $122,763 $97,258
======== =======
CAD NPL as a % of
Outstanding CAD Balance
Multi-family construction 31.7% 37.0%
One-to-four family
construction 2.1% 1.2%
Recreation and all other
loans 0.4% 1.0%
Commercial construction 5.4% 3.4%
Commercial acquisition and
development 0.4% 2.5%
Residential acquisition and
development 15.8% 11.4%
Total CAD NPL as a % of
outstanding CAD balance 8.6% 6.7%
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
As of
-----
Dec-10 Sep-10 Jun-10
------ ------ ------
Unpaid principal balance of impaired
loans $345,377 $311,941 $243,221
Cumulative charge offs on impaired
loans 71,972 69,783 54,930
------ ------ ------
Outstanding balance of impaired loans 273,405 242,158 188,291
Other non-accrual loans and leases not
impaired 74,094 105,023 75,467
------ ------- ------
Total non-accrual loans and leases $347,499 $347,181 $263,758
======== ======== ========
Allowance for impaired loans 40,719 43,584 40,721
------ ------ ------
Nonaccrual loans and leases, net of
specific reserves $306,780 $303,597 $223,037
======== ======== ========
Loans and leases 90+ past due, still
accruing 8,500 9,910 17,696
Restructured loans and leases, still
accruing 38,376 52,325 20,813
------ ------ ------
Total non-performing loans and leases $394,375 $409,416 $302,267
======== ======== ========
Allowance for impaired loans 40,719 43,584 40,721
Allowance for all other loans and
leases 156,194 161,497 160,053
------- ------- -------
Total Allowance for Credit Losses $196,913 $205,081 $200,774
======== ======== ========
Outstanding balance of impaired loans $273,405 $242,158 $188,291
Allowance for impaired loans 40,719 43,584 40,721
------ ------ ------
Net book value of impaired loans $232,686 $198,574 $147,570
======== ======== ========
Net book value of impaired loans as a %
of unpaid principal balance 67% 64% 61%
Coverage of other non-accrual loans
and leases not impaired by
the allowance for all other loans and
leases 211% 154% 212%
Coverage of non-performing loans and
leases not impaired
by the allowance for all other loans
and leases 129% 97% 140%
As of
-----
Mar-10 Dec-09
------ ------
Unpaid principal balance of impaired
loans $209,288 $161,631
Cumulative charge offs on impaired
loans 37,989 33,094
------ ------
Outstanding balance of impaired loans 171,299 128,537
Other non-accrual loans and leases not
impaired 28,338 15,476
------ ------
Total non-accrual loans and leases $199,637 $144,013
======== ========
Allowance for impaired loans 30,855 22,747
------ ------
Nonaccrual loans and leases, net of
specific reserves $168,782 $121,266
======== ========
Loans and leases 90+ past due, still
accruing 20,452 36,301
Restructured loans and leases, still
accruing 15,576 6,161
------ -----
Total non-performing loans and leases $235,665 $186,475
======== ========
Allowance for impaired loans 30,855 22,747
Allowance for all other loans and
leases 158,029 153,296
------- -------
Total Allowance for Credit Losses $188,884 $176,043
======== ========
Outstanding balance of impaired loans $171,299 $128,537
Allowance for impaired loans 30,855 22,747
------ ------
Net book value of impaired loans $140,444 $105,790
======== ========
Net book value of impaired loans as a %
of unpaid principal balance 67% 65%
Coverage of other non-accrual loans
and leases not impaired by
the allowance for all other loans and
leases 558% 991%
Coverage of non-performing loans and
leases not impaired
by the allowance for all other loans
and leases 246% 265%
BancorpSouth, Inc.
Noninterest Revenue and Expense
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-10 Sep-10 Jun-10
------ ------ ------
NONINTEREST REVENUE:
Mortgage lending $18,126 $8,898 $(2,304)
Credit card, debit card and
merchant fees 9,951 9,569 9,333
Service charges 16,854 18,621 18,953
Trust income 3,072 2,783 2,707
Securities gains (losses), net (470) 2,327 (585)
Insurance commissions 18,013 20,825 21,666
Annuity fees 458 537 698
Brokerage commissions and fees 1,436 1,340 1,419
Bank-owned life insurance 2,303 1,793 1,972
Other miscellaneous income 4,231 3,059 3,227
-----
Total noninterest revenue $73,974 $69,752 $57,086
======= ======= =======
NONINTEREST EXPENSE:
Salaries and employee benefits $65,980 $68,232 $68,189
Occupancy, net 10,668 11,038 10,527
Equipment 5,459 5,523 5,877
Deposit insurance assessments 5,895 4,752 4,362
Advertising 1,760 1,742 1,196
Foreclosed property expense 6,092 4,912 3,813
Telecommunications 2,148 2,624 2,494
Public relations 1,361 1,423 1,656
Data processing 1,428 1,576 1,594
Computer software 1,937 1,793 1,900
Amortization of intangibles 950 961 984
Legal fees 1,872 1,727 1,313
Postage and shipping 1,269 1,237 1,178
Other miscellaneous expense 16,628 15,547 14,933
Total noninterest expense $123,447 $123,087 $120,016
======== ======== ========
Quarter Ended
-------------
Mar-10 Dec-09
------ ------
NONINTEREST REVENUE:
Mortgage lending $5,025 $8,602
Credit card, debit card and
merchant fees 8,810 7,883
Service charges 16,262 18,689
Trust income 2,587 3,014
Securities gains (losses), net 1,297 (102)
Insurance commissions 21,668 17,583
Annuity fees 781 1,060
Brokerage commissions and fees 1,317 1,390
Bank-owned life insurance 1,669 1,843
Other miscellaneous income 3,916 4,543
Total noninterest revenue $63,332 $64,505
======= =======
NONINTEREST EXPENSE:
Salaries and employee benefits $69,287 $66,926
Occupancy, net 10,775 10,897
Equipment 5,739 5,578
Deposit insurance assessments 4,250 3,786
Advertising 656 1,120
Foreclosed property expense 3,538 6,292
Telecommunications 2,200 2,203
Public relations 1,648 1,304
Data processing 1,470 1,360
Computer software 1,704 1,759
Amortization of intangibles 1,015 1,139
Legal fees 1,328 1,885
Postage and shipping 1,360 1,254
Other miscellaneous expense 15,513 17,858
Total noninterest expense $120,483 $123,361
======== ========
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
December 31, 2010
-----------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned income $9,509,949 $123,491 5.15%
Held-to-maturity securities:
Taxable 1,154,939 8,600 2.95%
Tax-exempt 281,283 4,542 6.41%
Available-for-sale securities:
Taxable 923,085 7,836 3.37%
Tax-exempt 72,921 1,254 6.82%
Short-term investments 568,528 391 0.27%
------- ---
Total interest earning
assets and revenue 12,510,705 146,114 4.63%
Other assets 1,263,611
Less: allowance for credit losses (215,278)
Total $13,559,038
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,740,734 $7,462 0.62%
Savings 831,805 891 0.42%
Other time 3,745,046 19,827 2.10%
Short-term borrowings 623,862 275 0.17%
Junior subordinated debt 160,312 2,864 7.09%
Long-term debt 110,000 1,485 5.36%
------- -----
Total interest bearing
liabilities and expense 10,211,759 32,804 1.27%
Demand deposits -
noninterest bearing 1,975,318
Other liabilities 146,447
Total liabilities 12,333,524
Shareholders' equity 1,225,514
Total $13,559,038
===========
Net interest revenue $113,310
========
Net interest margin 3.59%
Net interest rate spread 3.36%
Interest bearing liabilities to
interest earning assets 81.62%
Net interest tax equivalent
adjustment $3,057
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
September 30, 2010
------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned income $9,682,146 $125,211 5.13%
Held-to-maturity securities:
Taxable 993,494 9,119 3.64%
Tax-exempt 230,182 3,975 6.85%
Available-for-sale securities:
Taxable 847,942 7,782 3.64%
Tax-exempt 69,735 1,225 6.97%
Short-term investments 442,927 292 0.26%
------- ---
Total interest earning
assets and revenue 12,266,426 147,604 4.77%
Other assets 1,265,657
Less: allowance for credit losses (227,201)
Total $13,304,882
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,651,166 $8,582 0.73%
Savings 786,267 881 0.44%
Other time 3,829,068 21,108 2.19%
Short-term borrowings 483,651 257 0.21%
Junior subordinated debt 160,312 2,880 7.13%
Long-term debt 110,734 1,499 5.37%
------- -----
Total interest bearing
liabilities and expense 10,021,198 35,207 1.39%
Demand deposits -
noninterest bearing 1,911,125
Other liabilities 143,413
Total liabilities 12,075,736
Shareholders' equity 1,229,146
Total $13,304,882
===========
Net interest revenue $112,397
========
Net interest margin 3.64%
Net interest rate spread 3.38%
Interest bearing liabilities to
interest earning assets 81.70%
Net interest tax equivalent
adjustment $2,719
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2010
-------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned income $9,763,448 $126,131 5.18%
Held-to-maturity securities:
Taxable 939,046 9,474 4.05%
Tax-exempt 218,747 3,711 6.80%
Available-for-sale securities:
Taxable 821,050 8,029 3.92%
Tax-exempt 72,440 1,281 7.09%
Short-term investments 295,618 176 0.24%
------- ---
Total interest earning
assets and revenue 12,110,349 148,802 4.93%
Other assets 1,329,535
Less: allowance for credit losses (216,378)
Total $13,223,506
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,635,078 $9,750 0.84%
Savings 770,665 915 0.48%
Other time 3,814,314 21,536 2.26%
Short-term borrowings 486,350 264 0.22%
Junior subordinated debt 160,312 2,861 7.16%
Long-term debt 112,731 1,506 5.36%
------- -----
Total interest bearing
liabilities and expense 9,979,450 36,832 1.48%
Demand deposits -
noninterest bearing 1,855,598
Other liabilities 142,672
Total liabilities 11,977,720
Shareholders' equity 1,245,786
Total $13,223,506
===========
Net interest revenue $111,970
========
Net interest margin 3.71%
Net interest rate spread 3.45%
Interest bearing liabilities to
interest earning assets 82.40%
Net interest tax equivalent
adjustment $2,640
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
March 31, 2010
--------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned income $9,809,884 $128,299 5.30%
Held-to-maturity securities:
Taxable 851,525 9,525 4.54%
Tax-exempt 215,250 3,786 7.13%
Available-for-sale securities:
Taxable 859,757 8,386 3.96%
Tax-exempt 72,396 1,279 7.16%
Short-term investments 170,734 103 0.24%
------- ---
Total interest earning
assets and revenue 11,979,546 151,378 5.12%
Other assets 1,340,608
Less: allowance for credit losses (192,983)
Total $13,127,171
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,568,045 $9,392 0.83%
Savings 748,342 889 0.48%
Other time 3,741,938 21,529 2.33%
Short-term borrowings 564,191 587 0.42%
Junior subordinated debt 160,312 2,855 7.22%
Long-term debt 112,764 1,524 5.48%
------- -----
Total interest bearing
liabilities and expense 9,895,592 36,776 1.51%
Demand deposits -
noninterest bearing 1,819,945
Other liabilities 146,225
Total liabilities 11,861,762
Shareholders' equity 1,265,409
Total $13,127,171
===========
Net interest revenue $114,602
========
Net interest margin 3.88%
Net interest rate spread 3.62%
Interest bearing liabilities to
interest earning assets 82.60%
Net interest tax equivalent
adjustment $2,720
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
December 31, 2009
-----------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned income $9,821,066 $130,671 5.28%
Held-to-maturity securities:
Taxable 878,452 10,239 4.62%
Tax-exempt 209,242 3,682 6.98%
Available-for-sale securities:
Taxable 892,191 8,676 3.86%
Tax-exempt 72,902 1,344 7.31%
Short-term investments 92,651 61 0.26%
------ ---
Total interest earning
assets and revenue 11,966,504 154,673 5.13%
Other assets 1,267,510
Less: allowance for credit losses (168,842)
Total $13,065,172
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,155,330 $9,023 0.86%
Savings 717,630 900 0.50%
Other time 3,748,894 23,445 2.48%
Short-term borrowings 713,972 405 0.23%
Junior subordinated debt 160,312 2,865 7.09%
Long-term debt 303,301 3,011 3.94%
------- -----
Total interest bearing
liabilities and expense 9,799,439 39,649 1.61%
Demand deposits -
noninterest bearing 1,826,763
Other liabilities 171,981
Total liabilities 11,798,183
Shareholders' equity 1,266,989
Total $13,065,172
===========
Net interest revenue $115,024
========
Net interest margin 3.81%
Net interest rate spread 3.52%
Interest bearing liabilities to
interest earning assets 81.89%
Net interest tax equivalent
adjustment $2,677
BancorpSouth, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in thousands)
(Unaudited)
Reconciliation of Pre-tax, Pre-Provision Earnings (a):
Quarter Ended
-------------
December September
31, 30,
--------- ----------
2010 2010
Net income $15,846 $11,260
Provision for credit
Plus: losses 43,293 54,850
Income tax expense
(benefit) 1,641 (9,767)
----- ------
Pre-tax, Pre-Provision
Earnings $60,780 $56,343
Quarter Ended
-------------
December
31,
---------
2009
Net income $(2,146)
Provision for credit
Plus: losses 62,271
Income tax expense
(benefit) (6,634)
------
Pre-tax, Pre-Provision
Earnings $53,491
Reconciliation of Tangible assets and Tangible
Shareholders' Equity to
Total Assets and Total Shareholders' Equity (b):
December 31,
------------
2010 2009
---- ----
Tangible assets
Total assets $13,615,010 $13,167,867
Less: Goodwill 270,097 270,097
Other identifiable
intangible assets 19,624 23,533
------ ------
Total tangible assets $13,325,289 $12,874,237
Tangible shareholders'
equity
Total shareholders' equity $1,222,244 $1,276,296
Less: Goodwill 270,097 270,097
Other identifiable
intangible assets 19,624 23,533
------ ------
Total tangible
shareholders' equity $932,523 $982,666
Tangible shareholders'
equity to tangible assets 7.00% 7.63%
(a) BancorpSouth, Inc. utilizes pre-tax, pre-provision
earnings as an additional measure when evaluating
the performance of the Company. Pre-tax, pre-provision
earnings are defined as net income plus
provision for credit losses and income tax expense. Management
believes pre-tax, pre-provision
earnings is important to investors as it shows earnings trends
without giving effect to provision for
credit losses and taxes.
(b) BancorpSouth, Inc. utilizes the ratio of tangible assets to
tangible shareholders' equity measures when
evaluating the performance of the Company. Tangible
shareholders' equity is defined by the
Company as total shareholders' equity less goodwill and other
identifiable intangible assets.
Tangible assets are defined by the Company as total assets less
goodwill and other identifiable
intangible assets. Management believes the ratio of tangible
equity to tangible assets is important
to investors who are interested in evaluating the adequacy of our
capital levels.
SOURCE BancorpSouth, Inc.
