BANCORPSOUTH, INC. 
By TUPELO, Miss., Jan. 23, 2013 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended December 31, 2012.
Highlights for the fourth quarter of 2012 included:
-- The appointment of James D. Rollins III as the Company's new Chief
Executive Officer.
-- Quarterly net income of $17.0 million or $0.18 per diluted share,
resulting in net income of $84.3 million, or $0.90 per diluted share,
for the year.
-- Mortgage production of $549.4 million, which contributed to mortgage
lending revenue of $17.2 million for the quarter.
-- Other real estate owned ("OREO") sales of $27.9 million, which
contributed to a 19.5 percent decline in OREO and a 10.3 percent
reduction in total non-performing assets ("NPAs") from the prior quarter
and reductions of 40.6 percent and 32.1 percent, respectively, compared
to the end of 2011.
-- Nonaccrual loans decreased $12.5 million, or 5.7 percent, from the prior
quarter and $69.6 million, or 25.1 percent, from the fourth quarter of
2011. At the end of the quarter, 55.7 percent of nonaccrual loans were
paying in accordance with their contractual terms.
-- Capital ratios continued to rise, with Tier 1 leverage and Total
risk-based capital ratios increasing to 10.25 percent and 15.08 percent,
respectively.
On November 26, 2012 the Company announced that the Board of Directors had selected James D. "Dan" Rollins III as its new Chief Executive Officer. Rollins assumed this position effective November 27, 2012, and also became a member of BancorpSouth's Board of Directors at that time. Rollins succeeded Aubrey B. Patterson, who continues to serve as Chairman of the Board. Rollins remarked, "I am both humbled by the confidence that the Board of Directors has placed in me and excited about working with a team of professionals who share a desire and commitment to move our Company forward. While I was only a part of the team for the last month of 2012, I believe that the results reported for the year are the product of a lot of hard work and effort over a number of quarters to continue to improve the Company's credit quality and operating performance."
The Company reported net income of $17.0 million, or $0.18 per diluted share, for the fourth quarter of 2012 compared with net income of $13.3 million, or $0.16 per diluted share, for the fourth quarter of 2011 and net income of $23.8 million, or $0.25 per diluted share, for the third quarter of 2012. The Company reported total net income for 2012 of $84.3 million, or $0.90 per diluted share, compared with $37.6 million, or $0.45 per diluted share, for 2011.
"Results for the fourth quarter reflect yet another quarter of strong mortgage production and asset quality improvement," remarked Patterson. "Mortgage production for the quarter was $549.4 million, contributing to total mortgage lending revenue of $17.2 million. This level of production resulted in a record annual production volume of almost $2 billion for 2012. As to asset quality, we are particularly pleased with disposition efforts related to OREO. Total sales for the quarter exceeded $27 million, which represents the largest quarter of sales during the credit cycle. We made decisions during the quarter to expedite the disposition of many of the OREO properties and to more aggressively price others going forward. Some of these decisions adversely impacted current quarter earnings, but we believe they are prudent ones that will help improve profitability in future periods."
Earnings for the quarter reflect a provision for credit losses of $6.0 million, which is a decrease from $19.3 million for the fourth quarter of 2011 and is flat compared to $6.0 million for the third quarter of 2012. Non-performing loans ("NPLs") declined $13.8 million, or 5.6 percent, during the fourth quarter of 2012 to $233.6 million compared with $247.3 million at September 30, 2012 and declined $88.7 million, or 27.5 percent, from $322.3 million at December 31, 2011. In addition, total NPAs declined $38.7 million, or 10.3 percent, to $336.8 million compared with $375.5 million at September 30, 2012 and declined $159.3 million, or 32.1 percent, from $496.1 million at December 31, 2011. Net charge-offs declined to $10.6 million for the fourth quarter of 2012 compared with $12.8 million for the third quarter of 2012. Net charge-offs during the fourth quarter of 2012 included $6.4 million of charge-offs of loans which had been identified and reported as impaired and were reserved for in previous quarters.
Earnings for the quarter were also impacted by additional compression in the net interest margin. The fully taxable equivalent net interest margin was 3.44 percent for the fourth quarter of 2012 compared with 3.55 percent for the third quarter of 2012 and 3.69 percent for the fourth quarter of 2011. Patterson added, "As others in the industry have experienced, we continue to see pressure on the net interest margin as a result of re-pricing on the asset side of the balance sheet. Our securities portfolio continues to roll over at lower rates and loan yields are under pressure both prior to and at maturity. The importance of fee income generation and efficiency are becoming increasingly magnified as we work to navigate through this rate environment."
Net Interest Revenue
Net interest revenue was $100.9 million for the fourth quarter of 2012, a decrease of 6.2 percent from $107.5 million for the fourth quarter of 2011 and a decrease of 2.4 percent from $103.4 million for the third quarter of 2012. The fully taxable equivalent net interest margin declined to 3.44 percent for the fourth quarter of 2012 from 3.69 percent for the fourth quarter of 2011 and 3.55 percent for the third quarter of 2012. Declines in the net interest margin were due primarily to continued pressure on asset yields, particularly yields on loans and leases, which declined to 4.76 percent for the fourth quarter of 2012 compared with 5.02 percent for the fourth quarter of 2011 and 4.85 percent for the third quarter of 2012.
Asset, Deposit and Loan Activity
Total assets were $13.4 billion at December 31, 2012 compared with $13.0 billion at December 31, 2011. Total deposits were $11.1 billion at December 31, 2012, an increase of 1.2 percent from $11.0 billion at December 31, 2011. Loans and leases, net of unearned income, were $8.6 billion at December 31, 2012, a decrease of 2.6 percent from $8.9 billion at December 31, 2011. The construction, acquisition, and development ("CAD") loan portfolio, which decreased $172.6 million, or 19.0 percent, from December 31, 2011 to December 31, 2012, accounted for 74.0 percent of the decline in net loans and leases over the same time period.
The decrease in time deposits of $389.2 million, or 13.0 percent, at December 31, 2012 compared to December 31, 2011, was offset partially by significant growth in noninterest bearing demand deposits, which increased $275.4 million, or 12.1 percent, over the same period. Additionally, savings deposits increased $154.1 million, or 15.5 percent, while interest bearing demand deposits increased $92.7 million, or 2.0 percent, over the same period. As of December 31, 2012, $801.9 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.73 percent.
Provision for Credit Losses and Allowance for Credit Losses
For the fourth quarter of 2012, the provision for credit losses was $6.0 million, compared with $19.3 million for the fourth quarter of 2011 and $6.0 million for the third quarter of 2012. Net charge-offs for the fourth quarter of 2012 were $10.6 million, compared with $23.8 million for the fourth quarter of 2011 and $12.8 million for the third quarter of 2012. Recoveries of previously charged-off loans were $9.2 million for the fourth quarter of 2012, compared with $2.6 million for the fourth quarter of 2011 and $6.1 million for the third quarter of 2012. Annualized net charge-offs were 0.49 percent of average loans and leases for the fourth quarter of 2012, compared with 1.06 percent for the fourth quarter of 2011 and 0.59 percent for the third quarter of 2012. Total annual net charge-offs were $58.7 million for 2012 compared with $131.9 million for 2011. Recoveries of previously charged-off loans totaled $30.7 million for 2012 compared with $10.2 million for 2011.
NPLs were $233.6 million, or 2.70 percent of net loans and leases, at December 31, 2012, compared with $322.3 million, or 3.63 percent of net loans and leases, at December 31, 2011, and $247.3 million, or 2.85 percent of net loans and leases, at September 30, 2012. The allowance for credit losses was $164.5 million, or 1.90 percent of net loans and leases, at December 31, 2012 compared with $195.1 million, or 2.20 percent of net loans and leases, at December 31, 2011 and $169.0 million, or 1.95 percent of net loans and leases, at September 30, 2012.
NPLs at December 31, 2012 consisted primarily of $207.2 million of nonaccrual loans, compared with $219.7 million of nonaccrual loans at September 30, 2012. Included in the reduction of nonaccrual loans during the fourth quarter of 2012 were payments received on nonaccrual loans of $31.6 million, compared with payments received on such loans of $26.7 million during the third quarter of 2012. NPLs at December 31, 2012 also included $1.2 million of loans 90 days or more past due and still accruing, compared with $1.4 million at September 30, 2012, and included restructured loans still accruing of $25.1 million at December 31, 2012, compared with $26.1 million at September 30, 2012. Early stage past due loans, representing loans 30-89 days past due, declined to $28.2 million at December 31, 2012 from $43.8 million at September 30, 2012.
At December 31, 2012, $35.7 million of NPLs were residential CAD loans, $36.3 million were other CAD loans, $62.2 million were commercial real estate loans and $40.7 million were consumer mortgages. NPLs from all other loan types totaled $58.7 million at December 31, 2012. Included in nonaccrual loans at December 31, 2012 were $115.4 million of loans, or 55.7 percent of total nonaccrual loans, that were paying as agreed, compared with $125.0 million, or 56.9 percent, at the end of the third quarter of 2012. These loans were generally placed on nonaccrual status because the collateral values were less than the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or would be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values. Such loans are generally deemed to be impaired, with a specific reserve established for the difference in the balance owed and the disposition value of the collateral.
At the end of the fourth quarter, 75.6 percent of nonaccrual loans were determined to be collateral dependent, and after write-downs and specific reserves, the remaining book balance of these loans was 70.9 percent of the unpaid principal balance. At December 31, 2012, coverage of unimpaired nonaccrual loans by the nonspecified allowance for credit losses was 305 percent and coverage of unimpaired NPLs by the nonspecified allowance for credit losses was 200 percent.
OREO decreased $25.0 million to $103.2 million during the fourth quarter of 2012 from $128.2 million at September 30, 2012. This net decrease reflected $8.5 million added through foreclosure, offset by sales of OREO of $27.9 million. Write-downs in the value of existing properties were $5.5 million for the fourth quarter of 2012 compared to $6.3 million for the third quarter of 2012. Sales of OREO during the fourth quarter of 2012 resulted in a net loss of $4.2 million compared to a net loss of $0.8 million for the third quarter of 2012. At December 31, 2012, OREO was carried at 44.0 percent of the aggregate loan balances at the time of foreclosure, compared with 49.2 percent at September 30, 2012.
Noninterest Revenue
Noninterest revenue was $70.9 million for the fourth quarter of 2012, compared with $65.3 million for the fourth quarter of 2011 and $70.4 million for the third quarter of 2012. These results included a positive mortgage servicing rights ("MSR") valuation adjustment of $0.2 million for the fourth quarter of 2012 compared with negative adjustments of $1.0 million for the fourth quarter of 2011 and $3.2 million for the third quarter of 2012.
Excluding the MSR valuation adjustments, net mortgage lending revenue was $17.0 million for the fourth quarter of 2012, compared with $9.9 million for the fourth quarter of 2011 and $16.8 million for the third quarter of 2012. Mortgage origination volume for the fourth quarter of 2012 was $549.4 million, compared with $389.6 million for the fourth quarter of 2011 and $607.9 million for the third quarter of 2012.
Credit and debit card fee revenue was $8.1 million for the fourth quarter of 2012, compared with $7.8 million for the fourth quarter of 2011 and $8.3 million for the third quarter of 2012. Service charge revenue was $13.9 million for the fourth quarter of 2012, compared with $17.4 million for the fourth quarter of 2011 and $14.2 million for the third quarter of 2012. Insurance commission revenue was $20.5 million for the fourth quarter of 2012, compared with $19.4 million for the fourth quarter of 2011 and $23.5 million for the third quarter of 2012. The decrease in insurance commission revenue was seasonal, as fourth quarter policy renewals are typically lower than other quarters.
Noninterest Expense
Noninterest expense for the fourth quarter of 2012 was $143.2 million, compared with $135.9 million for the fourth quarter of 2011 and $133.8 million for the third quarter of 2012. Salaries and employee benefits expense increased to $77.2 million for the fourth quarter of 2012 from $70.5 million for the fourth quarter of 2011 and $74.8 million for the third quarter of 2012. Foreclosed property expense increased to $12.0 million for the fourth quarter of 2012 from $10.8 million for the fourth quarter of 2011 and $8.8 million for the third quarter of 2012. Deposit insurance assessments were $3.1 million for the fourth quarter of 2012 compared to $5.7 million for the fourth quarter of 2011 and $4.0 million for the third quarter of 2012.
Capital Management
BancorpSouth remains a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 13.82 percent at December 31, 2012 and total risk based capital of 15.08 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for "well capitalized" classification. The Company's equity capitalization consists of 100 percent common stock. BancorpSouth's ratio of shareholders' equity to assets was 10.82 percent at December 31, 2012, compared with 9.72 percent at December 31, 2011 and 10.93 percent at September 30, 2012. The ratio of tangible shareholders' equity to tangible assets was 8.83 percent at December 31, 2012, compared with 7.67 percent at December 31, 2011 and 8.91 percent at September 30, 2012.
Summary
Patterson concluded, "Our fourth quarter results finalize a very successful and productive year in many aspects. During 2012, we were able to reduce NPLs by over 25 percent, OREO by over 40 percent, and total NPAs by over 30 percent. We experienced a record year in both mortgage production and mortgage lending income. In addition, we achieved growth in other fee lines of business, including a 3.7 percent increase in insurance commissions. As we enter 2013, we believe that this progress will be instrumental in helping us continue to enhance company performance despite industry headwinds."
Rollins added, "Over the course of my first few weeks as CEO, I have had an opportunity to meet many of my teammates across several different markets. I have experienced firsthand professionals who share my desire to help our company succeed. BancorpSouth has a history of over 135 years as a well-respected organization with a strong commitment to the values of client service and community support. Our team clearly understands that the industry landscape has changed. Regulatory measures have placed pressure on NSF and card fee income and the credit cycle has resulted in declining loan balances, both of which have contributed to declines in profitability. Our team understands that growth is the real key to battling industry headwinds and to improving profitability."
Conference Call
BancorpSouth will conduct a conference call to discuss its fourth quarter 2012 results on January 24, 2013, 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 the disposition and the aggressive pricing of certain OREO properties, credit quality and operating performance, profitability, 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 ongoing debt crisis and the downgrade of the sovereign credit ratings for various nations, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company's other real estate owned, limitations on the Company's ability to declare and pay dividends, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of legal or administrative proceedings, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd Frank Act, supervision of the Company's operations, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, 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, 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, the effectiveness of the Company's internal controls, other factors generally understood to affect the financial results of financial services companies and other factors detailed from time to time in the Company's press releases and filings with the Securities and Exchange Commission.
BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.4 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 293 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.
BancorpSouth, Inc.
Selected Financial Data
-----------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2012 2011 2012 2011
---- ---- ---- ----
(Dollars in thousands, except per share amounts)
Earnings Summary:
Net interest revenue $100,861 $107,489 $414,591 $434,913
Provision for credit losses 6,000 19,250 28,000 130,081
Noninterest revenue 70,901 65,335 280,149 270,845
Noninterest expense 143,219 135,856 549,193 533,633
------- ------- ------- -------
Income before income taxes 22,543 17,718 117,547 42,044
Income tax provision 5,563 4,415 33,252 4,475
Net income $16,980 $13,303 $84,295 $37,569
======= ======= ======= =======
Earnings per share: Basic $0.18 $0.16 $0.90 $0.45
===== ===== ===== =====
Diluted $0.18 $0.16 $0.90 $0.45
===== ===== ===== =====
Balance sheet data at December 31:
Total assets $13,397,198 $12,995,851
Total earning assets 12,179,958 11,770,950
Loans and leases, net of unearned income 8,636,989 8,870,311
Allowance for credit losses 164,466 195,118
Total deposits 11,088,146 10,955,189
Common shareholders' equity 1,449,052 1,262,912
Book value per share 15.34 15.13
Tangible book value per share 12.25 11.68
Average balance sheet data:
Total assets $13,143,193 $13,046,779 $13,067,276 $13,280,047
Total earning assets 12,045,432 11,918,358 11,960,971 12,143,391
Loans and leases, net of unearned interest 8,635,139 8,954,229 8,719,399 9,159,431
Total deposits 10,938,246 11,017,231 10,936,694 11,251,406
Common shareholders' equity 1,454,417 1,268,905 1,413,667 1,240,768
Non-performing assets at December 31:
Non-accrual loans and leases $207,241 $276,798
Loans and leases 90+ days past due, still accruing 1,210 3,434
Restructured loans and leases, still accruing 25,099 42,018
Other real estate owned 103,248 173,805
------- -------
Total non-performing assets 336,798 496,055
Net charge-offs as a percentage
of average loans (annualized) 0.49% 1.06% 0.67% 1.44%
Performance ratios (annualized):
Return on average assets 0.51% 0.40% 0.65% 0.28%
Return on common equity 4.64% 4.16% 5.96% 3.03%
Total shareholders' equity to total assets 10.82% 9.72% 10.82% 9.72%
Tangible shareholders' equity to tangible assets 8.83% 7.67% 8.83% 7.67%
Net interest margin 3.44% 3.69% 3.57% 3.69%
Average shares outstanding - basic 94,440,184 83,488,102 93,760,604 83,486,296
Average shares outstanding - diluted 94,560,226 83,503,611 93,850,104 83,509,759
Cash dividends per share $0.01 $0.01 $0.04 $0.14
Tier 1 capital 13.82% (1) 11.77% 13.82% (1) 11.77%
Total capital 15.08% (1) 13.03% 15.08% (1) 13.03%
Tier 1 leverage capital 10.25% (1) 8.85% 10.25% (1) 8.85%
(1) Estimated as of earnings release date
BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
Dec-12 Sep-12 Jun-12 Mar-12 Dec-11
------ ------ ------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from banks $223,814 $176,529 $224,084 $184,441 $195,681
Interest bearing deposits with other banks 979,800 757,207 603,458 665,675 303,663
Available-for-sale securities, at fair value 2,434,032 2,483,606 2,462,831 2,573,535 2,513,518
Loans and leases 8,672,752 8,716,715 8,771,642 8,777,538 8,911,258
Less: Unearned income 35,763 36,746 39,247 39,615 40,947
Allowance for credit losses 164,466 169,019 175,847 181,777 195,118
------- -------
Net loans and leases 8,472,523 8,510,950 8,556,548 8,556,146 8,675,193
Loans held for sale 129,138 129,408 108,134 110,294 83,458
Premises and equipment, net 319,456 321,068 320,419 321,720 323,383
Accrued interest receivable 44,356 48,314 47,358 50,008 51,266
Goodwill 275,173 275,173 271,297 271,297 271,297
Bank owned life insurance 231,120 203,798 202,620 202,698 200,085
Other real estate owned 103,248 128,211 143,615 167,808 173,805
Other assets 184,538 201,473 207,454 203,950 204,502
Total Assets $13,397,198 $13,235,737 $13,147,818 $13,307,572 $12,995,851
=========== =========== =========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest bearing $2,545,169 $2,492,508 $2,312,044 $2,260,012 $2,269,799
Interest bearing 4,799,496 4,697,260 4,782,243 4,897,585 4,706,825
Savings 1,145,785 1,103,490 1,083,255 1,067,256 991,702
Other time 2,597,696 2,681,382 2,778,795 2,857,469 2,986,863
Total deposits 11,088,146 10,974,640 10,956,337 11,082,322 10,955,189
Federal funds purchased and
securities sold under agreement
to repurchase 414,611 377,676 361,990 401,089 373,933
Short-term Federal Home Loan Bank borrowings
and other short-term borrowing - - 1,500 1,500 1,500
Accrued interest payable 6,140 6,759 7,161 7,652 8,644
Junior subordinated debt securities 160,312 160,312 160,312 160,312 160,312
Long-term Federal Home Loan Bank borrowings 33,500 33,500 33,500 33,500 33,500
Other liabilities 245,437 236,147 208,707 228,998 199,861
------- -------
Total Liabilities 11,948,146 11,789,034 11,729,507 11,915,373 11,732,939
Shareholders' Equity
--------------------
Common stock 236,094 236,102 236,091 236,090 208,709
Capital surplus 312,190 311,271 310,388 309,426 227,567
Accumulated other comprehensive income (loss) (8,646) 5,952 1,334 (4,136) (2,261)
Retained earnings 909,414 893,378 870,498 850,819 828,897
Total Shareholders' Equity 1,449,052 1,446,703 1,418,311 1,392,199 1,262,912
--------- ---------
Total Liabilities & Shareholders' Equity $13,397,198 $13,235,737 $13,147,818 $13,307,572 $12,995,851
=========== =========== =========== =========== ===========
BancorpSouth, Inc.
Consolidated Average Balance Sheets
(Unaudited)
Dec-12 Sep-12 Jun-12 Mar-12 Dec-11
------ ------ ------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from banks $164,801 $152,228 $152,907 $160,827 $151,004
Interest bearing deposits with other banks 849,710 605,270 574,624 603,714 384,231
Available-for-sale securities, at fair value 2,454,031 2,481,201 2,520,932 2,507,941 2,509,943
Federal funds sold and securities
purchased under agreement to resell - 2,717 - 274 2,174
Loans and leases 8,671,559 8,755,094 8,774,767 8,832,104 8,995,035
Less: Unearned income 36,420 38,448 39,542 40,562 40,806
Allowance for credit losses 170,081 179,283 185,209 202,158 208,005
------- ------- -------
Net loans and leases 8,465,058 8,537,363 8,550,016 8,589,384 8,746,224
Loans held for sale 106,552 118,944 77,642 61,250 67,781
Premises and equipment, net 320,439 320,234 320,731 322,641 322,544
Accrued interest receivable 43,144 44,789 45,494 47,512 49,256
Goodwill 275,173 273,867 271,297 271,297 271,297
Bank owned life insurance 208,504 203,151 202,616 200,724 198,892
Other real estate owned 119,852 134,384 155,471 170,924 164,841
Other assets 135,929 144,868 146,501 151,870 178,592
Total Assets $13,143,193 $13,019,016 $13,018,231 $13,088,358 $13,046,779
=========== =========== =========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest bearing $2,482,168 $2,328,948 $2,248,914 $2,139,371 $2,248,904
Interest bearing 4,703,500 4,704,896 4,769,340 4,960,060 4,714,059
Savings 1,117,297 1,092,802 1,074,912 1,027,611 975,892
Other time 2,635,281 2,729,878 2,815,753 2,916,910 3,078,376
Total deposits 10,938,246 10,856,524 10,908,919 11,043,952 11,017,231
Federal funds purchased and
securities sold under agreement
to repurchase 401,968 388,817 374,982 358,124 430,968
Short-term Federal Home Loan Bank borrowings
and other short-term borrowing - 1,223 1,500 1,500 1,500
Accrued interest payable 7,613 8,404 8,605 9,392 10,617
Junior subordinated debt securities 160,312 160,312 160,312 160,312 160,312
Long-term Federal Home Loan Bank borrowings 33,500 33,500 33,500 33,500 33,500
Other liabilities 147,137 138,079 126,680 117,869 123,746
------- ------- -------
Total Liabilities 11,688,776 11,586,859 11,614,498 11,724,649 11,777,874
Shareholders' Equity
--------------------
Common stock 236,103 236,095 236,091 231,276 208,722
Capital surplus 311,634 310,642 309,634 294,973 227,201
Accumulated other comprehensive (loss) income 1,260 2,900 (4,020) (2,269) 8,927
Retained earnings 905,420 882,520 862,028 839,729 824,055
Total Shareholders' Equity 1,454,417 1,432,157 1,403,733 1,363,709 1,268,905
--------- --------- ---------
Total Liabilities & Shareholders' Equity $13,143,193 $13,019,016 $13,018,231 $13,088,358 $13,046,779
=========== =========== =========== =========== ===========
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended Year To Date
------------- ------------
Dec-12 Sep-12 Jun-12 Mar-12 Dec-11 Dec-12 Dec-11
------ ------ ------ ------ ------ ------ ------
INTEREST REVENUE:
Loans and leases $102,925 $105,937 $107,737 $109,012 $112,566 $425,611 $461,076
Deposits with other banks 529 399 382 401 252 1,711 701
Federal funds sold and securities purchased
under agreement to resell - 2 1 - 1 3 167
Held-to-maturity securities:
Taxable - - - - - - 13,080
Tax-exempt - - - - - - 5,638
Available-for-sale securities:
Taxable 8,729 9,329 10,188 11,162 11,781 39,408 43,989
Tax-exempt 4,083 4,109 4,210 4,256 4,158 16,658 10,983
Loans held for sale 829 974 686 544 635 3,033 2,219
--- --- --- --- --- ----- -----
Total interest revenue 117,095 120,750 123,204 125,375 129,393 486,424 537,853
------- ------- ------- ------- ------- ------- -------
INTEREST EXPENSE:
Interest bearing demand 3,588 3,889 4,185 4,449 4,737 16,111 22,646
Savings 606 686 691 714 747 2,697 3,211
Other time 8,749 9,482 10,275 11,291 13,104 39,797 61,709
Federal funds purchased and securities sold
under agreement to repurchase 72 73 66 63 76 274 458
FHLB borrowings 349 364 366 367 367 1,446 3,459
Junior subordinated debt 2,869 2,875 2,879 2,879 2,871 11,502 11,451
Other 1 2 1 2 2 6 6
--- --- --- --- --- --- ---
Total interest expense 16,234 17,371 18,463 19,765 21,904 71,833 102,940
------ ------ ------ ------ ------ ------ -------
Net interest revenue 100,861 103,379 104,741 105,610 107,489 414,591 434,913
Provision for credit losses 6,000 6,000 6,000 10,000 19,250 28,000 130,081
----- ----- ----- ------ ------ ------ -------
Net interest revenue, after provision for
credit losses 94,861 97,379 98,741 95,610 88,239 386,591 304,832
------ ------ ------ ------ ------ ------- -------
NONINTEREST REVENUE:
Mortgage lending 17,188 13,549 11,040 15,142 8,928 56,919 17,069
Credit card, debit card and merchant fees 8,125 8,270 7,787 7,523 7,783 31,705 42,373
Service charges 13,875 14,189 13,697 15,116 17,412 56,877 66,670
Trust income 3,391 3,101 3,139 2,282 3,348 11,913 12,186
Security gains, net 152 39 177 74 18 442 12,127
Insurance commissions 20,502 23,519 22,964 23,153 19,416 90,138 86,918
Other 7,668 7,753 7,664 9,070 8,430 32,155 33,502
----- ----- ----- ----- ----- ------ ------
Total noninterest revenue 70,901 70,420 66,468 72,360 65,335 280,149 270,845
------ ------ ------ ------ ------ ------- -------
NONINTEREST EXPENSE:
Salaries and employee benefits 77,203 74,829 77,661 74,931 70,512 304,624 282,880
Occupancy, net of rental income 10,643 10,944 10,487 10,066 10,315 42,140 42,362
Equipment 5,309 5,083 5,124 5,333 5,108 20,849 21,707
Deposit insurance assessments 3,103 3,998 3,994 5,383 5,674 16,478 21,316
Prepayment penalty on FHLB borrowings - - - - - - 9,778
Other 46,961 38,934 39,240 39,967 44,247 165,102 155,590
------ ------ ------ ------
Total noninterest expenses 143,219 133,788 136,506 135,680 135,856 549,193 533,633
------- ------- ------- ------- ------- ------- -------
Income before income taxes 22,543 34,011 28,703 32,290 17,718 117,547 42,044
Income tax expense 5,563 10,186 8,079 9,424 4,415 33,252 4,475
----- ------ ----- ------
Net income $16,980 $23,825 $20,624 $22,866 $13,303 $84,295 $37,569
======= ======= ======= ======= ======= ======= =======
Net income per share: Basic $0.18 $0.25 $0.22 $0.25 $0.16 $0.90 $0.45
===== ===== ===== ===== ===== ===== =====
Diluted $0.18 $0.25 $0.22 $0.25 $0.16 $0.90 $0.45
===== ===== ===== ===== ===== ===== =====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-12 Sep-12 Jun-12 Mar-12 Dec-11
------ ------ ------ ------ ------
LOAN AND LEASE PORTFOLIO:
Commercial and industrial $1,476,611 $1,462,719 $1,497,678 $1,441,727 $1,473,728
Real estate
Consumer mortgages 1,873,875 1,888,783 1,904,420 1,937,997 1,945,190
Home equity 486,074 492,833 496,245 501,331 514,362
Agricultural 256,196 257,733 251,975 256,683 239,487
Commercial and industrial-owner occupied 1,333,103 1,309,631 1,288,887 1,287,542 1,301,575
Construction, acquisition and development 735,808 823,692 835,022 858,110 908,362
Commercial real estate 1,748,881 1,738,516 1,748,748 1,742,001 1,754,022
Credit cards 104,884 101,405 101,085 100,527 106,281
All other 621,557 604,657 608,335 612,005 627,304
------- ------- ------- ------- -------
Total loans $8,636,989 $8,679,969 $8,732,395 $8,737,923 $8,870,311
---------- ---------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period $169,019 $175,847 $181,777 $195,118 $199,686
Loans and leases charged off:
Commercial and industrial (2,174) (4,334) (1,582) (4,272) (1,677)
Real estate
Consumer mortgages (3,789) (2,299) (2,818) (4,216) (2,953)
Home equity (1,064) (270) (536) (851) (1,667)
Agricultural (456) (302) (386) (96) (110)
Commercial and industrial-owner occupied (1,421) (994) (2,732) (3,868) (1,136)
Construction, acquisition and development (5,286) (6,845) (9,560) (11,394) (10,539)
Commercial real estate (4,026) (2,633) (3,260) (2,809) (6,858)
Credit cards (531) (540) (588) (562) (706)
All other (977) (731) (438) (758) (794)
Total loans charged off (19,724) (18,948) (21,900) (28,826) (26,440)
------- ------- ------- ------- -------
Recoveries:
Commercial and industrial 3,507 1,007 1,040 1,542 446
Real estate
Consumer mortgages 819 256 438 323 263
Home equity 66 37 78 315 43
Agricultural 10 53 53 10 76
Commercial and industrial-owner occupied 561 270 1,514 351 100
Construction, acquisition and development 1,621 2,676 1,955 2,155 971
Commercial real estate 2,208 1,443 4,504 383 340
Credit cards 144 144 121 118 168
All other 235 234 267 288 215
Total recoveries 9,171 6,120 9,970 5,485 2,622
----- ----- ----- ----- -----
Net charge-offs (10,553) (12,828) (11,930) (23,341) (23,818)
Provision charged to operating expense 6,000 6,000 6,000 10,000 19,250
Balance, end of period $164,466 $169,019 $175,847 $181,777 $195,118
-------- -------- -------- -------- --------
Average loans for period $8,635,139 $8,716,646 $8,735,225 $8,791,542 $8,954,229
========== ========== ========== ========== ==========
Ratio:
Net charge-offs to average loans (annualized) 0.49% 0.59% 0.55% 1.06% 1.06%
==== ==== ==== ==== ====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-12 Sep-12 Jun-12 Mar-12 Dec-11
------ ------ ------ ------ ------
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial $9,311 $8,674 $13,156 $11,025 $12,260
Real estate
Consumer mortgages 36,133 35,599 35,660 46,562 47,878
Home equity 3,497 3,471 2,995 2,687 2,036
Agricultural 7,587 7,190 8,390 4,254 4,179
Commercial and industrial-owner occupied 20,910 27,059 26,957 32,842 33,112
Construction, acquisition and development 66,635 92,351 104,283 115,649 133,110
Commercial real estate 57,656 40,514 44,359 35,715 40,616
Credit cards 415 465 364 509 594
All other 5,097 4,415 4,082 3,984 3,013
----- ----- ----- ----- -----
Total nonaccrual loans and leases $207,241 $219,738 $240,246 $253,227 $276,798
-------- -------- -------- -------- --------
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and industrial $414 $45 $ - $10 $12
Real estate
Consumer mortgages 512 1,027 1,141 1,314 2,974
Home equity - - - - -
Agricultural 10 - - - -
Commercial and industrial-owner occupied 19 119 - - -
Construction, acquisition and development - - - - -
Commercial real estate - - - - -
Credit cards 228 236 324 228 299
All other 27 15 167 146 149
Total loans and leases 90+ days past due, still accruing 1,210 1,442 1,632 1,698 3,434
----- ----- ----- ----- -----
Restructured Loans and Leases, Still Accruing 25,099 26,147 25,071 30,311 42,018
Total non-performing loans and leases 233,550 247,327 266,949 285,236 322,250
------- ------- ------- ------- -------
OTHER REAL ESTATE OWNED: 103,248 128,211 143,615 167,808 173,805
------- ------- ------- ------- -------
Total Non-performing Assets $336,798 $375,538 $410,564 $453,044 $496,055
======== ======== ======== ======== ========
Additions to Nonaccrual Loans and Leases During the Quarter $44,674 $28,918 $41,121 $40,392 $39,474
======= ======= ======= ======= =======
Loans and Leases 30-89 Days Past Due, Still Accruing:
Commercial and industrial $3,080 $6,065 $3,040 $4,809 $8,065
Real estate
Consumer mortgages 13,403 14,745 14,436 10,736 15,864
Home equity 1,272 1,766 1,311 2,248 2,037
Agricultural 306 977 471 663 339
Commercial and industrial-owner occupied 3,498 4,859 2,745 3,332 2,154
Construction, acquisition and development 2,303 8,528 2,062 2,431 2,714
Commercial real estate 1,176 3,210 1,288 2,104 3,292
Credit cards 777 734 673 686 802
All other 2,422 2,861 2,544 1,983 2,280
----- ----- ----- ----- -----
Total Loans and Leases 30-89 days past due, still accruing $28,237 $43,745 $28,570 $28,992 $37,547
======= ======= ======= ======= =======
Credit Quality Ratios:
Provision for credit losses to average loans and leases (annualized) 0.28% 0.28% 0.27% 0.45% 0.86%
Allowance for credit losses to net loans and leases 1.90% 1.95% 2.01% 2.08% 2.20%
Allowance for credit losses to non-performing assets 48.83% 45.01% 42.83% 40.12% 39.33%
Allowance for credit losses to non-performing loans and leases 70.42% 68.34% 65.87% 63.73% 60.55%
Non-performing loans and leases to net loans and leases 2.70% 2.85% 3.06% 3.26% 3.63%
Non-performing assets to net loans and leases 3.90% 4.33% 4.70% 5.18% 5.59%
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-12 Sep-12 Jun-12 Mar-12 Dec-11
------ ------ ------ ------ ------
REAL ESTATE CONSTRUCTION, ACQUISITION
AND DEVELOPMENT ("CAD") PORTFOLIO:
Outstanding Balance
Multi-family construction $6,542 $4,546 $2,378 $4,683 $2,138
One-to-four family construction 177,392 189,561 182,648 159,281 169,827
Recreation and all other loans 44,840 62,888 66,033 63,407 67,235
Commercial construction 114,099 126,296 112,929 122,173 130,124
Commercial acquisition and development 161,546 177,887 182,570 191,783 197,044
Residential acquisition and development 231,389 262,514 288,464 316,783 341,994
------- ------- ------- ------- -------
Total outstanding balance $735,808 $823,692 $835,022 $858,110 $908,362
======== ======== ======== ======== ========
Nonaccrual CAD Loans
Multi-family construction $ - $ - $ - $ - $1,067
One-to-four family construction 10,609 14,171 15,490 11,953 14,690
Recreation and all other loans 1,160 1,166 380 386 436
Commercial construction 5,889 6,991 4,318 3,702 5,235
Commercial acquisition and development 17,337 21,408 21,741 23,464 23,968
Residential acquisition and development 31,640 48,615 62,354 76,144 87,714
------ ------ ------ ------ ------
Total nonaccrual CAD loans 66,635 92,351 104,283 115,649 133,110
------ ------ ------- ------- -------
CAD Loans 90+ Days Past Due, Still Accruing:
Multi-family construction - - - - -
One-to-four family construction - - - - -
Recreation and all other loans - - - - -
Commercial construction - - - - -
Commercial acquisition and development - - - - -
Residential acquisition and development - - - - -
--- --- ---
Total CAD loans 90+ days past due, still accruing - - - - -
--- --- --- --- ---
Restructured CAD Loans, Still Accruing
Multi-family construction - - - - -
One-to-four family construction 781 787 793 799 318
Recreation and all other loans 17 20 842 847 852
Commercial construction - - - 977 -
Commercial acquisition and development 458 133 260 2,975 433
Residential acquisition and development 4,107 4,149 4,048 106 446
----- ----- ----- --- ---
Total restructured CAD loans, still accruing 5,363 5,089 5,943 5,704 2,049
----- ----- ----- ----- -----
Total Non-performing CAD loans $71,998 $97,440 $110,226 $121,353 $135,159
======= ======= ======== ======== ========
CAD NPL as a % of Outstanding CAD Balance
Multi-family construction - - - - 49.9%
One-to-four family construction 6.4% 7.9% 8.9% 8.0% 8.8%
Recreation and all other loans 2.6% 1.9% 1.9% 1.9% 1.9%
Commercial construction 5.2% 5.5% 3.8% 3.8% 4.0%
Commercial acquisition and development 11.0% 12.1% 12.1% 13.8% 12.4%
Residential acquisition and development 15.4% 20.1% 23.0% 24.1% 25.8%
Total CAD NPL as a % of outstanding CAD balance 9.8% 11.8% 13.2% 14.1% 14.9%
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
December 31, 2012
-----------------
Special
Pass Mention Substandard Doubtful Loss Impaired Total
---- ------- ----------- -------- ---- -------- -----
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial $1,426,498 $14,663 $29,876 $729 $ - $4,845 $1,476,611
Real estate
Consumer mortgages 1,691,682 32,840 131,141 2,907 198 15,107 1,873,875
Home equity 461,151 4,791 17,619 1,057 76 1,380 486,074
Agricultural 227,138 5,729 17,947 - - 5,382 256,196
Commercial and industrial-owner occupied 1,202,111 31,087 82,816 369 - 16,720 1,333,103
Construction, acquisition and development 567,881 30,846 75,031 715 - 61,335 735,808
Commercial real estate 1,524,262 53,455 120,591 160 - 50,413 1,748,881
Credit cards 104,884 - - - - - 104,884
All other 600,807 8,397 10,196 601 10 1,546 621,557
Total loans $7,806,414 $181,808 $485,217 $6,538 $284 $156,728 $8,636,989
========== ======== ======== ====== ==== ======== ==========
September 30, 2012
------------------
Special
Pass Mention Substandard Doubtful Loss Impaired Total
---- ------- ----------- -------- ---- -------- -----
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial $1,403,199 $10,018 $42,399 $867 $17 $6,219 $1,462,719
Real estate
Consumer mortgages 1,703,867 31,993 133,139 3,727 203 15,854 1,888,783
Home equity 467,219 4,788 17,901 1,002 285 1,638 492,833
Agricultural 232,741 4,684 14,726 20 - 5,562 257,733
Commercial and industrial-owner occupied 1,169,867 34,384 83,606 736 49 20,989 1,309,631
Construction, acquisition and development 607,759 42,128 85,349 703 - 87,753 823,692
Commercial real estate 1,517,138 45,500 138,606 70 - 37,202 1,738,516
Credit cards 101,405 - - - - - 101,405
All other 582,353 6,790 13,758 828 6 922 604,657
Total loans $7,785,548 $180,285 $529,484 $7,953 $560 $176,139 $8,679,969
========== ======== ======== ====== ==== ======== ==========
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
As of
-----
Dec-12 Sep-12 Jun-12 Mar-12 Dec-11
------ ------ ------ ------ ------
Unpaid principal balance of impaired loans $206,072 $225,581 $259,703 $266,483 $287,099
Cumulative charge-offs on impaired loans 49,344 49,442 59,326 55,371 52,176
------ ------ ------ ------ ------
Impaired nonaccrual loan and lease outstanding balance 156,728 176,139 200,377 211,112 234,923
Other non-accrual loans and leases not impaired 50,513 43,599 39,869 42,115 41,875
------ ------ ------ ------ ------
Total non-accrual loans and leases $207,241 $219,738 $240,246 $253,227 $276,798
======== ======== ======== ======== ========
Allowance for impaired loans 10,541 18,205 23,939 25,546 39,708
------ ------ ------ ------ ------
Nonaccrual loans and leases, net of specific reserves $196,700 $201,533 $216,307 $227,681 $237,090
======== ======== ======== ======== ========
Loans and leases 90+ days past due, still accruing $1,210 $1,442 $1,632 $1,698 $3,434
Restructured loans and leases, still accruing 25,099 26,147 25,071 30,311 42,018
------ ------ ------ ------ ------
Total non-performing loans and leases $233,550 $247,327 $266,949 $285,236 $322,250
======== ======== ======== ======== ========
Allowance for impaired loans $10,541 $18,205 $23,939 $25,546 $39,708
Allowance for all other loans and leases 153,925 150,814 151,908 156,231 155,410
------- ------- ------- ------- -------
Total allowance for credit losses $164,466 $169,019 $175,847 $181,777 $195,118
-------- -------- -------- -------- --------
Outstanding balance of impaired loans $156,728 $176,139 $200,377 $211,112 $234,923
Allowance for impaired loans 10,541 18,205 23,939 25,546 39,708
------ ------ ------ ------ ------
Net book value of impaired loans $146,187 $157,934 $176,438 $185,566 $195,215
======== ======== ======== ======== ========
Net book value of impaired loans as a %
of unpaid principal balance 71% 70% 68% 70% 68%
Coverage of other non-accrual loans and leases not impaired by
the allowance for all other loans and leases 305% 346% 381% 371% 371%
Coverage of non-performing loans and leases not impaired
by the allowance for all other loans and leases 200% 212% 228% 211% 178%
BancorpSouth, Inc.
Geographical Information
(Dollars in thousands)
(Unaudited)
December 31, 2012
-----------------
Alabama Greater
and Florida Memphis Texas and
Panhandle Arkansas* Mississippi* Missouri Area Tennessee* Louisiana Other Total
--------- -------- ----------- -------- ---- --------- --------- ----- -----
LOAN AND LEASE PORTFOLIO:
Commercial and industrial $70,132 $149,418 $386,799 $35,240 $17,170 $74,300 $249,405 $494,147 $1,476,611
Real estate
Consumer mortgages 109,585 262,899 709,251 44,513 79,221 160,906 454,607 52,893 1,873,875
Home equity 60,037 38,082 164,019 22,520 64,710 73,351 62,649 706 486,074
Agricultural 7,461 79,269 68,298 3,782 11,948 13,941 66,979 4,518 256,196
Commercial and industrial-owner occupied 120,318 155,015 494,957 77,951 88,980 89,935 253,088 52,859 1,333,103
Construction, acquisition and development 92,454 68,034 217,763 35,880 77,091 93,414 141,206 9,966 735,808
Commercial real estate 208,676 331,575 353,067 189,993 104,101 98,811 392,027 70,631 1,748,881
Credit cards - - - - - - - 104,884 104,884
All other 32,122 82,825 180,836 8,210 54,332 50,815 97,473 114,944 621,557
Total loans $700,785 $1,167,117 $2,574,990 $418,089 $497,553 $655,473 $1,717,434 $905,548 $8,636,989
======== ========== ========== ======== ======== ======== ========== ======== ==========
CAD PORTFOLIO:
Multi-family construction $ - $ - $10 $ - $ - $4,550 $1,982 $ - $6,542
One-to-four family construction 27,048 12,189 42,948 8,040 10,051 41,461 35,184 471 177,392
Recreation and all other loans 1,520 8,726 12,654 301 3,897 3,719 14,023 - 44,840
Commercial construction 17,674 11,844 38,822 2,114 7,690 10,228 23,906 1,821 114,099
Commercial acquisition and development 15,068 17,006 51,471 9,757 25,786 14,802 26,357 1,299 161,546
Residential acquisition and development 31,144 18,270 71,858 15,668 29,667 18,654 39,753 6,375 231,389
Total CAD loans $92,454 $68,035 $217,763 $35,880 $77,091 $93,414 $141,205 $9,966 $735,808
======= ======= ======== ======= ======= ======= ======== ====== ========
NON-PERFORMING LOANS AND LEASES:
Commercial and industrial $1,734 $1,043 $552 $735 $23 $165 $2,776 $3,216 $10,244
Real estate
Consumer mortgages 3,666 5,846 10,445 592 765 3,769 7,631 7,972 40,686
Home equity 934 148 576 140 757 611 328 3 3,497
Agricultural 79 3,915 1,766 1,023 827 170 261 1 8,042
Commercial and industrial-owner occupied 6,443 4,975 10,070 - 1,700 2,974 1,857 242 28,261
Construction, acquisition and development 17,228 1,403 7,782 12,026 19,201 7,201 5,139 2,018 71,998
Commercial real estate 10,724 8,378 7,708 24,312 4,921 2,772 2,913 468 62,196
Credit cards - - - - - - - 2,520 2,520
All other 428 2,240 1,438 15 671 744 558 12 6,106
Total loans $41,236 $27,948 $40,337 $38,843 $28,865 $18,406 $21,463 $16,452 $233,550
======= ======= ======= ======= ======= ======= ======= ======= ========
NON-PERFORMING LOANS AND LEASES
AS A PERCENTAGE OF OUTSTANDING:
Commercial and industrial 2.47% 0.70% 0.14% 2.09% 0.13% 0.22% 1.11% 0.65% 0.69%
Real estate
Consumer mortgages 3.35% 2.22% 1.47% 1.33% 0.97% 2.34% 1.68% 15.07% 2.17%
Home equity 1.56% 0.39% 0.35% 0.62% 1.17% 0.83% 0.52% 0.42% 0.72%
Agricultural 1.06% 4.94% 2.59% 27.05% 6.92% 1.22% 0.39% 0.02% 3.14%
Commercial and industrial-owner occupied 5.35% 3.21% 2.03% - 1.91% 3.31% 0.73% 0.46% 2.12%
Construction, acquisition and development 18.63% 2.06% 3.57% 33.52% 24.91% 7.71% 3.64% 20.25% 9.78%
Commercial real estate 5.14% 2.53% 2.18% 12.80% 4.73% 2.81% 0.74% 0.66% 3.56%
Credit cards - - - - - - - 2.40% 2.40%
All other 1.33% 2.70% 0.80% 0.18% 1.23% 1.46% 0.57% 0.01% 0.98%
Total loans 5.88% 2.39% 1.57% 9.29% 5.80% 2.81% 1.25% 1.82% 2.70%
==== ==== ==== ==== ==== ==== ==== ==== ====
*Excludes the Greater Memphis Area.
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
December 31, 2012
-----------------
Alabama Greater
and Florida Memphis Texas and
Panhandle Arkansas* Mississippi* Missouri Area Tennessee* Louisiana Other Total
--------- -------- ----------- -------- ---- --------- --------- ----- -----
OTHER REAL ESTATE OWNED:
Commercial and industrial $395 $ - $106 $ - $ - $ - $ - $ - $501
Real estate - - - - - - - - -
Consumer mortgages 1,714 173 2,220 - 961 624 760 3,665 10,117
Home equity - - - - - - - - -
Agricultural 856 - 99 - 1,089 2,169 212 - 4,425
Commercial and industrial-owner occupied 155 146 1,602 - 2,630 66 146 - 4,745
Construction, acquisition and development 13,610 1,430 15,659 734 35,717 9,535 1,844 448 78,977
Commercial real estate 478 1,420 3 263 819 76 176 - 3,235
All other 46 16 227 92 734 12 89 32 1,248
Total loans $17,254 $3,185 $19,916 $1,089 $41,950 $12,482 $3,227 $4,145 $103,248
======= ====== ======= ====== ======= ======= ====== ====== ========
Quarter Ended
-------------
Dec-12 Sep-12 Jun-12 Mar-12 Dec-11
------ ------ ------ ------ ------
OTHER REAL ESTATE OWNED:
Balance, beginning of period $128,211 $143,615 $167,808 $173,805 $162,686
Additions to foreclosed properties
New foreclosed property 8,451 6,268 6,904 10,766 36,507
Reductions in foreclosed properties
Sales (27,892) (15,392) (26,165) (11,771) (16,688)
Writedowns (5,522) (6,280) (4,932) (4,992) (8,700)
Balance, end of period $103,248 $128,211 $143,615 $167,808 $173,805
======== ======== ======== ======== ========
FORECLOSED PROPERTY EXPENSE
Loss on sale of other real estate owned $4,203 $765 $2,708 $770 $711
Writedown of other real estate owned 5,522 6,280 4,932 4,992 8,700
Other foreclosed property expense 2,266 1,749 2,572 2,647 1,422
Total foreclosed property expense $11,991 $8,794 $10,212 $8,409 $10,833
======= ====== ======= ====== =======
*Excludes the Greater Memphis Area.
BancorpSouth, Inc.
Noninterest Revenue and Expense
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-12 Sep-12 Jun-12 Mar-12 Dec-11
------ ------ ------ ------ ------
NONINTEREST REVENUE:
Mortgage lending $17,188 $13,549 $11,040 $15,142 $8,928
Credit card, debit card and merchant fees 8,125 8,270 7,787 7,523 7,783
Service charges 13,875 14,189 13,697 15,116 17,412
Trust income 3,391 3,101 3,139 2,282 3,348
Securities gains, net 152 39 177 74 18
Insurance commissions 20,502 23,519 22,964 23,153 19,416
Annuity fees 418 548 635 642 382
Brokerage commissions and fees 1,715 1,782 1,779 1,438 1,215
Bank-owned life insurance 1,899 1,750 1,812 2,613 2,007
Other miscellaneous income 3,636 3,673 3,438 4,377 4,826
Total noninterest revenue $70,901 $70,420 $66,468 $72,360 $65,335
======= ======= ======= ======= =======
NONINTEREST EXPENSE:
Salaries and employee benefits $77,203 $74,829 $77,661 $74,931 $70,512
Occupancy, net of rental income 10,643 10,944 10,487 10,066 10,315
Equipment 5,309 5,083 5,124 5,333 5,108
Deposit insurance assessments 3,103 3,998 3,994 5,383 5,674
Advertising 2,045 1,081 902 841 1,778
Foreclosed property expense 11,991 8,794 10,212 8,409 10,833
Telecommunications 2,168 2,118 2,023 2,206 2,110
Public relations 1,304 1,309 1,355 1,466 1,244
Data processing 2,714 2,312 2,444 2,764 2,398
Computer software 2,031 1,856 1,786 1,803 1,892
Amortization of intangibles 857 860 742 763 813
Legal 3,133 3,004 981 2,216 3,947
Postage and shipping 1,117 1,060 1,033 1,255 1,163
Other miscellaneous expense 19,601 16,540 17,762 18,244 18,069
Total noninterest expense $143,219 $133,788 $136,506 $135,680 $135,856
======== ======== ======== ======== ========
INSURANCE COMMISSIONS:
Property and casualty commissions $14,968 $17,704 $16,894 $14,430 $14,033
Life and health commissions 4,376 4,651 4,681 4,724 4,024
Risk management income 581 698 618 655 597
Other 577 466 771 3,344 762
Total insurance commissions $20,502 $23,519 $22,964 $23,153 $19,416
======= ======= ======= ======= =======
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-12 Sep-12 Jun-12 Mar-12 Dec-11
------ ------ ------ ------ ------
MORTGAGE SERVICING RIGHTS:
Fair value, beginning of period $34,562 $34,167 $35,668 $30,174 $29,159
Additions to mortgage servicing rights:
Originations of servicing assets 5,146 5,784 4,076 3,525 3,754
Changes in fair value:
Due to payoffs/paydowns (2,005) (2,181) (1,737) (1,726) (1,745)
Due to change in valuation inputs or
assumptions used in the valuation model 183 (3,206) (3,837) 3,697 (991)
Other changes in fair value (4) (2) (3) (2) (3)
Fair value, end of period $37,882 $34,562 $34,167 $35,668 $30,174
======= ======= ======= ======= =======
MORTGAGE LENDING REVENUE:
Production revenue:
Origination $15,131 $15,326 $13,119 $9,720 $8,308
Servicing 3,879 3,610 3,495 3,451 3,356
Payoffs/Paydowns (2,005) (2,181) (1,737) (1,726) (1,745)
------ ------ ------ ------ ------
Total production revenue 17,005 16,755 14,877 11,445 9,919
Market value adjustment 183 (3,206) (3,837) 3,697 (991)
Total mortgage lending revenue $17,188 $13,549 $11,040 $15,142 $8,928
======= ======= ======= ======= ======
AVAILABLE-FOR-SALE SECURITIES, at fair value
U.S. Government agencies $1,401,996 $1,472,747 $1,481,060 $1,578,441 $1,501,243
Government agency issued residential
mortgage-back securities 366,875 338,230 360,489 385,146 404,610
Government agency issued commercial
mortgage-back securities 91,445 90,306 35,895 31,647 34,599
Obligations of states and political subdivisions 565,873 574,559 577,629 568,642 563,520
Other 7,843 7,764 7,758 9,659 9,546
Total available-for-sale securities $2,434,032 $2,483,606 $2,462,831 $2,573,535 $2,513,518
========== ========== ========== ========== ==========
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
December 31, 2012
-----------------
Average Yield/
(Taxable equivalent
basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of
unearned income $8,741,691 $104,608 4.76%
Available-for-sale securities:
Taxable 1,993,245 8,840 1.76%
Tax-exempt 460,786 6,281 5.42%
Short-term investments 849,710 528 0.25%
------- ---
Total interest earning
assets and revenue 12,045,432 120,257 3.97%
Other assets 1,267,842
Less: allowance for
credit losses (170,081)
Total $13,143,193
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand -interest bearing $4,703,500 $3,588 0.30%
Savings 1,117,297 606 0.22%
Other time 2,635,281 8,749 1.32%
Short-term borrowings 402,024 73 0.07%
Junior subordinated debt 160,312 2,869 7.12%
Long-term debt 33,500 349 4.14%
------ ---
Total interest bearing
liabilities and expense 9,051,914 16,234 0.71%
Demand deposits -
noninterest bearing 2,482,168
Other liabilities 154,694
Total liabilities 11,688,776
Shareholders' equity 1,454,417
Total $13,143,193
===========
Net interest revenue $104,023
========
Net interest margin 3.44%
Net interest rate spread 3.26%
Interest bearing liabilities to
interest earning assets 75.15%
Net interest tax equivalent adjustment $3,162
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
September 30, 2012
------------------
Average Yield/
(Taxable equivalent
basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of
unearned income $8,835,590 $107,756 4.85%
Available-for-sale securities:
Taxable 2,022,294 9,439 1.86%
Tax-exempt 458,907 6,322 5.48%
Short-term investments 607,987 401 0.26%
------- ---
Total interest earning
assets and revenue 11,924,778 123,918 4.13%
Other assets 1,273,521
Less: allowance for
credit losses (179,283)
Total $13,019,016
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand -interest bearing $4,704,896 $3,889 0.33%
Savings 1,092,802 686 0.25%
Other time 2,729,878 9,482 1.38%
Short-term borrowings 390,100 90 0.09%
Junior subordinated debt 160,312 2,875 7.13%
Long-term debt 33,500 349 4.14%
------ ---
Total interest bearing
liabilities and expense 9,111,488 17,371 0.76%
Demand deposits -
noninterest bearing 2,328,948
Other liabilities 146,423
Total liabilities 11,586,859
Shareholders' equity 1,432,157
Total $13,019,016
===========
Net interest revenue $106,547
========
Net interest margin 3.55%
Net interest rate spread 3.37%
Interest bearing liabilities to
interest earning assets 76.41%
Net interest tax equivalent adjustment $3,168
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2012
-------------
Average Yield/
(Taxable equivalent
basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of
unearned income $8,812,867 $109,260 4.99%
Available-for-sale securities:
Taxable 2,068,725 10,298 2.00%
Tax-exempt 452,207 6,478 5.76%
Short-term investments 574,624 383 0.27%
------- ---
Total interest earning
assets and revenue 11,908,423 126,419 4.27%
Other assets 1,295,017
Less: allowance for
credit losses (185,209)
Total $13,018,231
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand -interest bearing $4,769,340 $4,184 0.35%
Savings 1,074,912 691 0.26%
Other time 2,815,753 10,275 1.47%
Short-term borrowings 376,545 85 0.09%
Junior subordinated debt 160,312 2,879 7.22%
Long-term debt 33,500 349 4.19%
------ ---
Total interest bearing
liabilities and expense 9,230,362 18,463 0.80%
Demand deposits -
noninterest bearing 2,248,914
Other liabilities 135,222
Total liabilities 11,614,498
Shareholders' equity 1,403,733
Total $13,018,231
===========
Net interest revenue $107,956
========
Net interest margin 3.65%
Net interest rate spread 3.47%
Interest bearing liabilities to
interest earning assets 77.51%
Net interest tax equivalent adjustment $3,215
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
March 31, 2012
--------------
Average Yield/
(Taxable equivalent
basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of
unearned income $8,852,792 $110,407 5.02%
Available-for-sale securities:
Taxable 2,058,859 11,272 2.20%
Tax-exempt 449,082 6,547 5.86%
Short-term investments 603,988 401 0.27%
------- ---
Total interest earning
assets and revenue 11,964,721 128,627 4.32%
Other assets 1,325,795
Less: allowance for
credit losses (202,158)
Total $13,088,358
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand -interest bearing $4,960,060 $4,449 0.36%
Savings 1,027,611 714 0.28%
Other time 2,916,910 11,291 1.56%
Short-term borrowings 359,690 83 0.09%
Junior subordinated debt 160,312 2,879 7.22%
Long-term debt 33,500 349 4.19%
------ ---
Total interest bearing
liabilities and expense 9,458,083 19,765 0.84%
Demand deposits -
noninterest bearing 2,139,371
Other liabilities 127,195
Total liabilities 11,724,649
Shareholders' equity 1,363,709
Total $13,088,358
===========
Net interest revenue $108,862
========
Net interest margin 3.66%
Net interest rate spread 3.48%
Interest bearing liabilities to
interest earning assets 79.05%
Net interest tax equivalent adjustment $3,252
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
December 31, 2011
-----------------
Average Yield/
(Taxable equivalent
basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of
unearned income $9,022,010 $114,094 5.02%
Available-for-sale securities:
Taxable 2,083,983 11,891 2.26%
Tax-exempt 425,960 6,396 5.96%
Short-term investments 386,405 253 0.26%
------- ---
Total interest earning
assets and revenue 11,918,358 132,634 4.42%
Other assets 1,336,426
Less: allowance for
credit losses (208,005)
Total $13,046,779
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand -interest bearing $4,714,059 $4,737 0.40%
Savings 975,892 746 0.30%
Other time 3,078,376 13,104 1.69%
Short-term borrowings 432,539 95 0.09%
Junior subordinated debt 160,312 2,871 7.11%
Long-term debt 33,500 350 4.15%
------ ---
Total interest bearing
liabilities and expense 9,394,678 21,903 0.92%
Demand deposits -
noninterest bearing 2,248,904
Other liabilities 134,292
Total liabilities 11,777,874
Shareholders' equity 1,268,905
Total $13,046,779
===========
Net interest revenue $110,731
========
Net interest margin 3.69%
Net interest rate spread 3.49%
Interest bearing liabilities to
interest earning assets 78.83%
Net interest tax equivalent adjustment $3,241
BancorpSouth, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in thousands, except per share amounts)
(Unaudited)
December 31, September 30,
------------ -------------
2012 2011 2012
---- ---- ----
Tangible assets
Total assets $13,397,198 $12,995,851 $13,235,737
Less: Goodwill 275,173 271,297 275,173
Other identifiable intangible assets 17,329 16,613 17,932
Total tangible assets $13,104,696 $12,707,941 $12,942,632
Tangible shareholders' equity
Total shareholders' equity $1,449,052 $1,262,912 $1,446,703
Less: Goodwill 275,173 271,297 275,173
Other identifiable intangible assets 17,329 16,613 17,932
Total tangible shareholders' equity $1,156,550 $975,002 $1,153,598
Total shares outstanding 94,437,552 83,483,796 94,440,710
Tangible shareholders' equity to tangible assets* $12.25 $11.68 $12.22
Tangible book value per share** 8.83% 7.67% 8.91%
* BancorpSouth, Inc. utilizes the ratio of tangible shareholders' equity to
tangible assets 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 shareholders' equity to
tangible assets
is important to investors who are interested in evaluating the adequacy of the Company's
capital levels.
** BancorpSouth, Inc. utilizes tangible book value per share when evaluating
the performance
of the Company. Tangible book value per share is defined by the
Company as tangible
shareholders' equity divided by total common shares outstanding. Management believes that
tangible book value per share is important to investors who are interested
in changes from
period to period in book value per share exclusive of changes in
intangible assets.
SOURCE BancorpSouth, Inc.
