BANCORPSOUTH, INC. TUPELO, Miss., April 20, 2015 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended March 31, 2015.
Highlights for the first quarter of 2015 included:
-- Net income of $32.3 million or $0.33 per diluted share.
-- Net operating income of $32.3 million or $0.33 per diluted share.
-- Generated deposit growth of $280.3 million, or 10.4 percent on an
annualized basis.
-- Continued credit quality improvement and recoveries of previously
charged-off loans resulted in a negative provision for credit losses of
$5.0 million.
-- The consent order issued on September 4, 2014 related to Bank Secrecy
Act ("BSA") and anti-money laundering ("AML") compliance was terminated
effective April 7, 2015.
-- Produced $33.5 million of insurance commission revenue, which represents
the highest level of quarterly insurance commission revenue in the
Company's history.
-- Mortgage lending revenue totaled $8.6 million, despite a negative
mortgage servicing rights ("MSR") valuation adjustment of $3.0 million.
-- Merger applications for pending Ouachita Bancshares Corp. and Central
Community Corporation transactions were re-filed with regulatory
agencies.
-- Earnings were adversely impacted by a $5.5 million increase to the
litigation reserve for probable losses related to certain ongoing legal
matters.
"We are extremely pleased to have the consent order related to BSA and AML compliance lifted," remarked Dan Rollins, Chairman and Chief Executive Officer. "The timely resolution to this matter is reflective of the diligence, effort, and effectiveness our team displayed in dealing with the issue. We are appreciative of the guidance provided by our regulators through this process and their commitment to review our program in such a timely manner."
The Company reported net income of $32.3 million, or $0.33 per diluted share, for the first quarter of 2015 compared with net income of $28.4 million, or $0.30 per diluted share, for the first quarter of 2014 and net income of $28.7 million, or $0.30 per diluted share, for the fourth quarter of 2014.
The Company reported net operating income (excluding merger related and other non-operating expenses) of $32.3 million, or $0.33 per diluted share, for the first quarter of 2015 compared to $28.8 million, or $0.30 per diluted share, for the first quarter of 2014 and $28.7 million, or $0.30 per diluted share, for the fourth quarter of 2014.
Rollins continued, "We are pleased to report quarterly results that reflect continued improvement in profitability and core operating performance. Earnings for the quarter benefited from growth in our noninterest products. Our insurance team generated $33.5 million of commission revenue, which is the largest quarterly insurance commission revenue total in our Company's history. Our mortgage team produced $311.1 million of mortgage loans for the quarter, which contributed to mortgage lending revenue of $8.6 million. Finally, our wealth management team reported total revenue of $6.2 million. The growth in each of these products is reflective of our overall strategic focus on growing all areas of our Company as well as our ability to attract quality producers. While seasonal pay-downs in certain large commercial lines of credit provided a headwind to net loan growth, we continue to be pleased with our new loan production as well as our current loan pipeline."
Earnings for the quarter benefitted from a negative provision for credit losses totaling $5.0 million. Rollins added, "Our reported credit quality metrics continue to improve. During the quarter, we also received recoveries of previously charged-off loans of $4.0 million. Our entire team has done an outstanding job in returning our Company's credit quality to a level we are all proud of."
Net Interest Revenue
Net interest revenue was $106.1 million for the first quarter of 2015, an increase of 4.5 percent from $101.5 million for the first quarter of 2014 and a decrease of 0.3 percent from $106.4 million for the fourth quarter of 2014. The fully taxable equivalent net interest margin was 3.56 percent for the first quarter of 2015 compared to 3.54 percent for the first quarter of 2014 and 3.60 percent for the fourth quarter of 2014. Yields on loans and leases declined to 4.31 percent for the first quarter of 2015 from 4.48 percent for the first quarter of 2014 and increased from 4.30 percent for the fourth quarter of 2014, while yields on total interest earning assets were 3.80 percent for the first quarter of 2015 compared with 3.85 percent for both the first quarter of 2014 and the fourth quarter of 2014. The average cost of deposits was 0.24 percent for the first quarter of 2015 compared to 0.31 percent for the first quarter of 2014 and 0.25 percent for the fourth quarter of 2014.
Asset, Deposit and Loan Activity
Total assets were $13.6 billion at March 31, 2015 compared with $13.1 billion at March 31, 2014. Loans and leases, net of unearned income, were $9.7 billion at March 31, 2015 compared with $9.1 billion at March 31, 2014.
Total deposits were $11.3 billion at March 31, 2015 compared with $10.8 billion at March 31, 2014. The decrease in time deposits of $243.8 million, or 11.1 percent, at March 31, 2015 compared to March 31, 2014 was offset by growth in other lower cost deposits. Noninterest bearing demand deposits increased $189.9 million, or 7.0 percent, over the same period. Additionally, savings deposits increased $98.5 million, or 7.6 percent, while interest bearing demand deposits increased $396.2 million, or 8.6 percent, over the same period. At March 31, 2015, $665.1 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.68 percent.
Provision for Credit Losses and Allowance for Credit Losses
Earnings for the quarter reflect a negative provision for credit losses of $5.0 million, compared to no recorded provision for both the first quarter of 2014 and the fourth quarter of 2014. Total non-performing assets ("NPAs") declined $67.5 million, or 43.0 percent, to $89.4 million at March 31, 2015 compared with $156.9 million at March 31, 2014 and declined $16.4 million, or 15.5 percent, from $105.7 million at December 31, 2014.
Net charge-offs for the first quarter of 2015 were $0.8 million, compared with $3.5 million for the first quarter of 2014 and $1.5 million for the fourth quarter of 2014. Recoveries of previously charged-off loans were $4.0 million for the first quarter of 2015, compared with $4.5 million for the first quarter of 2014 and $3.3 million for the fourth quarter of 2014. Annualized net charge-offs were 0.03 percent of average loans and leases for the first quarter of 2015, compared with 0.16 percent for the first quarter of 2014 and 0.06 percent for the fourth quarter of 2014.
Non-performing loans ("NPLs") were $61.5 million, or 0.63 percent of net loans and leases, at March 31, 2015, compared with $93.3 million, or 1.03 percent of net loans and leases, at March 31, 2014, and $71.7 million, or 0.74 percent of net loans and leases, at December 31, 2014. The allowance for credit losses was $136.7 million, or 1.40 percent of net loans and leases, at March 31, 2015 compared with $149.7 million, or 1.65 percent of net loans and leases, at March 31, 2014 and $142.4 million, or 1.47 percent of net loans and leases, at December 31, 2014.
NPLs at March 31, 2015 consisted primarily of $54.4 million of nonaccrual loans, compared with $58.1 million of nonaccrual loans at December 31, 2014. Payments received on nonaccrual loans during the first quarter of 2015 totaled $18.9 million, compared with payments received on such loans of $8.5 million during the fourth quarter of 2014. NPLs at March 31, 2015 also included $1.6 million of loans 90 days or more past due and still accruing, compared with $2.8 million of such loans at December 31, 2014, and included restructured loans still accruing of $5.4 million at March 31, 2015, compared with $10.9 million of such loans at December 31, 2014. Early stage past due loans, representing loans 30-89 days past due, totaled $29.1 million at March 31, 2015 compared to $25.8 million at December 31, 2014.
Other real estate owned ("OREO") decreased $6.1 million to $27.9 million during the first quarter of 2015 from $34.0 million at December 31, 2014. This net decrease reflected $2.8 million of OREO added through foreclosure, offset by sales of OREO of $6.7 million. Write-downs in the value of existing properties were $2.2 million for the first quarter of 2015 compared to $2.4 million for the fourth quarter of 2014. Sales of OREO during the first quarter of 2015 resulted in a net gain of $0.8 million compared to a net loss of $1.6 million for the fourth quarter of 2014. At March 31, 2015, OREO was carried at 39.0 percent of the aggregate loan balances at the time of foreclosure, compared with 40.6 percent at December 31, 2014.
Noninterest Revenue
Noninterest revenue was $73.3 million for the first quarter of 2015, compared with $66.5 million for the first quarter of 2014 and $63.5 million for the fourth quarter of 2014. These results included a negative MSR valuation adjustment of $3.0 million for the first quarter of 2015 compared with a negative MSR valuation adjustment of $1.5 million for the first quarter of 2014 and a negative MSR valuation adjustment of $3.4 million for the fourth quarter of 2014. Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.
Excluding the MSR valuation adjustments, net mortgage lending revenue was $11.6 million for the first quarter of 2015, compared with $4.9 million for the first quarter of 2014 and $6.7 million for the fourth quarter of 2014. Mortgage origination volume for the first quarter of 2015 was $311.1 million, compared with $197.1 million for the first quarter of 2014 and $256.3 million for the fourth quarter of 2014.
Credit and debit card fee revenue was $8.5 million for the first quarter of 2015, compared with $7.8 million for the first quarter of 2014 and $9.9 million for the fourth quarter of 2014. Deposit service charge revenue was $11.3 million for the first quarter of 2015, compared with $12.5 million for the first quarter of 2014 and $12.5 million for the fourth quarter of 2014. Insurance commission revenue was $33.5 million for the first quarter of 2015, compared with $31.6 million for the first quarter of 2014 and $25.4 million for the fourth quarter of 2014. Wealth management revenue was $6.2 million for the first quarter of 2015, compared with $5.9 million for the first quarter of 2014 and $5.8 million for the fourth quarter of 2014.
Noninterest Expense
Noninterest expense for the first quarter of 2015 was $136.9 million, compared with $126.7 million for the first quarter of 2014 and $130.0 million for the fourth quarter of 2014. Salaries and employee benefits expense was $81.2 million for the first quarter of 2015 compared to $78.9 million for the first quarter of 2014 and $76.8 million for the fourth quarter of 2014. The current quarter increase was driven by a number of factors, including an increase in pension expense. Total annual pension expense for 2015 is expected to be approximately $7 million higher than 2014 due to annual revisions to actuarial assumptions, including updates to the Society of Actuaries pension plan mortality tables. Foreclosed property expense was $2.0 million for the first quarter of 2015 compared with $2.6 million for the first quarter of 2014 and $4.6 million for the fourth quarter of 2014. Deposit insurance assessments were $2.3 million for the first quarter of 2015 compared to $1.6 million for the first quarter of 2014 and $2.4 million for the fourth quarter of 2014. During the first quarter of 2015, the Company incurred expense of $5.5 million to increase its litigation accrual for probable losses related to certain ongoing legal matters.
Rollins added, "We continue to evaluate the profitability and performance of each of our locations. Through location consolidations, we have reduced our full service branch count to 240 from 257 at the beginning of 2014." The Company's current location count includes 240 full service branches, including remote drive-through facilities, 6 loan production offices, 12 stand-alone mortgage offices and 26 insurance locations.
Capital Management
The Company's equity capitalization is comprised entirely of common stock. BancorpSouth's ratio of shareholders' equity to assets was 12.07 percent at March 31, 2015, compared with 11.83 percent at March 31, 2014 and 12.05 percent at December 31, 2014. The ratio of tangible shareholders' equity to tangible assets was 9.99 percent at March 31, 2015, compared with 9.69 percent at March 31, 2014 and 9.92 percent at December 31, 2014.
Estimated regulatory capital ratios at March 31, 2015 were calculated in accordance with the Basel III capital framework. BancorpSouth is a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 12.87 percent at March 31, 2015 and total risk based capital of 14.14 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, for "well capitalized" classification.
Transaction Closings and Announcements
On January 8, 2014, the Company announced the signing of a definitive merger agreement with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as "OIB"), headquartered in Monroe, Louisiana, pursuant to which Ouachita Bancshares Corp. will be merged with and into the Company. OIB operates 12 full-service banking offices along the I-20 corridor and has loan production offices in Madison, Mississippi and Natchitoches, Louisiana. As of March 31, 2015, OIB, on a consolidated basis, reported total assets of $653.6 million, total loans of $462.1 million and total deposits of $545.3 million. Under the terms of the definitive agreement, the Company will issue approximately 3,675,000 shares of the Company's common stock plus $22.875 million in cash for all outstanding shares of Ouachita Bancshares Corp.'s capital stock, subject to certain conditions and potential adjustments. The terms of the amended agreement provide for a minimum total deal value of $107.5 million but also allow Ouachita Bancshares Corp. to terminate the agreement if the average closing price of the Company's common stock declines below a certain threshold prior to closing. The merger has been unanimously approved by the Board of Directors of each company and was approved by OIB shareholders on April 8, 2014. On July 21, 2014, the Company announced the merger agreement was extended until June 30, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions, and, on February 25, 2015, the Company re-filed the merger application for the merger with Ouachita Bancshares Corp. with the appropriate regulatory agencies. The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.
On January 21, 2014, the Company announced the signing of a definitive merger agreement with Central Community Corporation, headquartered in Temple, Texas, pursuant to which Central Community Corporation will be merged with and into the Company. Central Community Corporation is the parent company of First State Bank Central Texas ("First State Bank"), which is headquartered in Austin, Texas. First State Bank operates 31 full-service banking offices in central Texas. As of March 31, 2015, Central Community Corporation, on a consolidated basis, reported total assets of $1.4 billion, total loans of $600.5 million and total deposits of $1.2 billion. Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company's common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation's capital stock, subject to certain conditions and potential adjustments. The terms of the amended agreement provide for a minimum total deal value of $191.0 million but also allow Central Community Corporation to terminate the agreement if the average closing price of the Company's common stock declines below a certain threshold prior to closing. The merger has been unanimously approved by the Board of Directors of each company and was approved by Central Community Corporation shareholders on April 24, 2014. On July 21, 2014, the Company announced the merger agreement was extended until June 30, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions, and, on February 25, 2015, the Company re-filed the merger application for the merger with Central Community Corporation with the appropriate regulatory agencies. The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.
For additional information regarding the status of the merger with Ouachita Bancshares Corp. and the status of the merger with Central Community Corporation, please refer to the Current Report on Form 8-K that was previously filed with the Securities and Exchange Commission (the "SEC") on July 24, 2014, Part II, Item 5 of the Quarterly Report on Form 10-Q that was previously filed with the SEC on August 6, 2014, the Current Report on Form 8-K that was previously filed with the SEC on September 4, 2014, and the Annual Report on Form 10-K that was previously filed with the SEC on February 24, 2015.
On April 9, 2014, BancorpSouth Insurance Services, Inc. acquired the assets of Lafayette, Louisiana based Knox Insurance Group, LLC. Knox was formed in 1972 and currently produces annual revenues of approximately $3 million. Knox will continue to operate under current leadership in Lafayette.
Summary
Rollins concluded, "The momentum built over the last two years through the dedication and hard work of our team continues to drive the improved financial performance reflected in our first quarter results. Particularly, our efforts to enhance our sales focus as well as hiring proven producers are yielding results. We are growing the customer base in our bank and across all products. We continue to benefit from improved credit quality as well. Finally, we continue to focus on reducing operating expenses and improving efficiency. I'm excited about the position of our Company and optimistic about our ability to continue to improve profitability."
Conference Call
BancorpSouth will conduct a conference call to discuss its first quarter 2015 results on April 21, 2015, at 10:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com. A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.
About BancorpSouth, Inc.
BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.6 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 284 commercial banking, mortgage, and insurance locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.
Forward-Looking Statements
Certain statements contained in this news release may not be based upon historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "could," "estimate," "expect," "foresee," "hope," "intend," "may," "might," "plan," "will," or "would" or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the terms, timing and closings of the proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program, the findings and results of the joint investigation by the Consumer Financial Protection Bureau (the "CFPB") and the United States Department of Justice ("DOJ") of the Company's fair lending practices, the acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company's products and services if the proposed mergers close, the outcome of any instituted, pending or threatened material litigation, amortization expense for intangible assets, goodwill impairments, loan impairment, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue, fair value determinations, the amount of the Company's non-performing loans and leases, additions to OREO, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, continued weakness in the economic environment, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company's reserve for losses from representation and warranty obligations, the Company's foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, calculation of economic value of equity, impaired loan charge-offs, troubled debt restructurings, diversification of the Company's revenue stream, liquidity needs and strategies, sources of funding, net interest margin, declaration and payment of dividends, cost saving initiatives, improvement in the Company's efficiencies, operating expense trends, future acquisitions and consideration to be used therefor, the impact of litigation regarding debit card fees and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters.
The Company cautions readers not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors. These factors may include, but are not limited to, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program, the findings and results of the CFPB and the DOJ in their review of the Company's fair lending practices, the ability of the Company, Ouachita Bancshares Corp. and Central Community Corporation to obtain regulatory approval of and close the proposed mergers, the potential impact upon the Company of the delay in the closings of these proposed mergers, the impact of any ongoing, pending or threatened litigation, administrative and investigatory matters involving the Company, conditions in the financial markets and economic conditions generally, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company's OREO, limitations on the Company's ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Act, and supervision of the Company's operations, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic and environmental conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of the loss of any key Company personnel, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the Company's ability to adapt its products and services to evolving industry standards and consumer preferences, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company's growth strategy, interruptions or breaches in the Company's information system security, the failure of certain third-party vendors to perform, unfavorable ratings by rating agencies, dilution caused by the Company's issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, other factors generally understood to affect the assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies and other factors detailed from time to time in the Company's press and news releases, reports and other filings with the SEC. Forward-looking statements speak only as of the date that they were made, and, except as required by law, the Company does not undertake any obligation to update or revise forward-looking statements to reflect events or circumstances that occur after the date of this news release.
BancorpSouth, Inc.
Selected Financial Information
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended
3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
--------- ---------- --------- --------- ---------
Earnings Summary:
Interest revenue $113,497 $114,237 $113,922 $111,499 $110,599
Interest expense 7,424 7,792 8,309 8,418 9,076
----- ----- ----- ----- -----
Net interest revenue 106,073 106,445 105,613 103,081 101,523
Provision for credit
losses (5,000) - - - -
------ --- --- --- ---
Net interest revenue, after provision
for credit losses 111,073 106,445 105,613 103,081 101,523
Noninterest revenue 73,315 63,513 69,278 69,838 66,517
Noninterest expense 136,933 130,046 133,699 127,954 126,707
------- ------- ------- ------- -------
Income before income taxes 47,455 39,912 41,192 44,965 41,333
Income tax expense 15,189 11,252 12,414 14,097 12,889
------ ------ ------ ------ ------
Net income $32,266 $28,660 $28,778 $30,868 $28,444
======= ======= ======= ======= =======
Balance Sheet - Period End Balances
Total assets $13,630,322 $13,326,369 $13,071,557 $12,985,887 $13,143,555
Total earning assets 12,468,322 12,163,897 11,929,416 11,794,445 11,948,897
Total securities 2,194,373 2,156,927 2,211,462 2,332,192 2,426,758
Loans and leases, net of
unearned income 9,726,970 9,712,936 9,510,542 9,311,661 9,068,376
Allowance for credit
losses 136,660 142,443 143,950 147,132 149,704
Total deposits 11,252,654 10,972,339 10,701,537 10,670,414 10,811,790
Long-term debt 76,055 78,148 81,742 83,835 85,835
Total shareholders' equity 1,645,208 1,606,059 1,610,543 1,588,850 1,554,676
Balance Sheet - Average Balances
Total assets $13,457,668 $13,131,130 $12,987,103 $12,933,879 $13,087,128
Total earning assets 12,398,058 12,038,265 11,892,493 11,825,994 11,958,836
Total securities 2,190,989 2,180,000 2,272,114 2,394,045 2,452,178
Loans and leases, net of
unearned income 9,670,987 9,579,059 9,393,709 9,232,743 9,022,155
Total deposits 11,126,210 10,802,194 10,662,841 10,650,077 10,825,308
Long-term debt 76,078 79,387 81,742 83,967 87,767
Total shareholders' equity 1,624,496 1,613,239 1,600,721 1,574,588 1,537,897
Nonperforming Assets:
Non-accrual loans and
leases $54,418 $58,052 $54,612 $64,533 $77,531
Loans and leases 90+ days
past due, still accruing 1,615 2,763 1,925 2,406 1,949
Restructured loans and
leases, still accruing 5,433 10,920 12,398 6,712 13,776
Non-performing loans
(NPLs) 61,466 71,735 68,935 73,651 93,256
------ ------ ------ ------ ------
Other real estate owned 27,889 33,984 42,691 55,253 63,595
------ ------ ------ ------ ------
Non-performing assets
(NPAs) $89,355 $105,719 $111,626 $128,904 $156,851
======= ======== ======== ======== ========
Financial Ratios and Other Data:
Return on average assets 0.97% 0.87% 0.88% 0.96% 0.88%
Return on average
shareholders' equity 8.06% 7.05% 7.13% 7.86% 7.50%
Return on tangible equity 9.84% 8.81% 8.83% 9.74% 9.28%
Pre-tax pre-provision
return on average assets 1.29% 1.21% 1.26% 1.39% 1.28%
Noninterest income to
average assets 2.21% 1.92% 2.12% 2.17% 2.06%
Noninterest expense to
average assets 4.13% 3.93% 4.08% 3.97% 3.93%
Net interest margin-fully
taxable equivalent 3.56% 3.60% 3.62% 3.59% 3.54%
Net interest rate spread 3.46% 3.49% 3.50% 3.48% 3.43%
Efficiency ratio (tax
equivalent) 75.17% 75.25% 75.19% 72.76% 74.16%
Loan/deposit ratio 86.44% 88.52% 88.87% 87.27% 83.87%
Price to earnings mult
(avg) 18.43 18.45 16.64 21.00 23.33
Market value to book value 136.26% 134.91% 120.13% 148.53% 154.13%
Market value to book value
(avg) 127.91% 130.16% 129.54% 143.72% 150.43%
Market value to tangible
book value 168.52% 167.95% 149.58% 185.73% 192.80%
Market value to tangible
book value (avg) 158.20% 162.04% 161.30% 179.75% 188.17%
Headcount FTE 3,924 3,948 3,938 3,981 3,981
Credit Quality Ratios:
Net charge-offs to
average loans and leases
(annualized) 0.03% 0.06% 0.13% 0.11% 0.16%
Provision for credit
losses to average loans
and leases (annualized) (0.21%) 0.00% 0.00% 0.00% 0.00%
Allowance for credit
losses to net loans and
leases 1.40% 1.47% 1.51% 1.58% 1.65%
Allowance for credit
losses to non-performing
loans and leases 222.33% 198.57% 208.82% 199.77% 160.53%
Allowance for credit
losses to non-performing
assets 152.94% 134.74% 128.96% 114.14% 95.44%
Non-performing loans and
leases to net loans and
leases 0.63% 0.74% 0.72% 0.79% 1.03%
Non-performing assets to
net loans and leases 0.92% 1.09% 1.17% 1.38% 1.73%
Equity Ratios:
Total shareholders' equity
to total assets 12.07% 12.05% 12.32% 12.24% 11.83%
Tangible shareholders'
equity to tangible assets 9.99% 9.92% 10.14% 10.03% 9.69%
Capital Adequacy:
Tier 1 capital 12.87%* 13.26% 13.18% 13.09% 13.18%
Total capital 14.14%* 14.52% 14.43% 14.35% 14.44%
Tier 1 leverage capital 10.30%* 10.55% 10.47% 10.33% 10.04%
Estimated for current quarter
Common Share Data:
Basic earnings per share $0.33 $0.30 $0.30 $0.32 $0.30
Diluted earnings per share 0.33 0.30 0.30 0.32 0.30
Cash dividends per share 0.08 0.08 0.08 0.05 0.05
Book value per share 17.04 16.69 16.77 16.54 16.19
Tangible book value per
share 13.78 13.40 13.46 13.23 12.95
Market value per share
(last) 23.22 22.51 20.14 24.57 24.96
Market value per share
(high) 23.68 23.28 25.43 25.55 26.24
Market value per share
(low) 19.64 19.22 20.11 22.16 22.46
Market value per share
(avg) 21.80 21.72 21.72 23.78 24.36
Dividend payout ratio 22.40% 25.17% 25.03% 15.56% 16.80%
Total shares outstanding 96,544,502 96,254,903 96,065,021 96,046,057 96,004,679
Average shares outstanding
-basic 96,359,885 96,173,000 96,052,260 96,034,475 95,629,890
Average shares outstanding
-diluted 96,653,401 96,506,827 96,373,950 96,373,121 95,952,611
Yield/Rate:
(Taxable equivalent basis)
Loans, loans held for
sale, and leases net of
unearned income 4.31% 4.30% 4.36% 4.38% 4.48%
Available-for-sale securities:
Taxable 1.54% 1.43% 1.42% 1.45% 1.50%
Tax-exempt 5.40% 5.30% 5.37% 5.44% 5.58%
Short-term investments 0.22% 0.24% 0.22% 0.24% 0.25%
Total interest earning
assets and revenue 3.80% 3.85% 3.89% 3.88% 3.85%
Deposits: 0.24% 0.25% 0.28% 0.28% 0.31%
Demand -interest bearing 0.18% 0.18% 0.17% 0.17% 0.17%
Savings 0.12% 0.12% 0.12% 0.12% 0.13%
Other time 0.82% 0.87% 0.96% 0.97% 1.06%
Short-term borrowings 0.12% 0.11% 0.10% 0.09% 0.07%
Total int bearing dep & s/
t borrowings 0.31% 0.33% 0.36% 0.37% 0.39%
Junior subordinated debt 2.84% 2.82% 2.81% 2.81% 2.86%
Long-term debt 2.88% 2.86% 2.85% 2.84% 2.91%
Total interest bearing
liabilities and expense 0.34% 0.36% 0.39% 0.40% 0.42%
Interest bearing
liabilities to interest
earning assets 71.13% 70.57% 71.07% 71.98% 73.51%
Net interest tax
equivalent adjustment $2,653 $2,736 $2,810 $2,860 $2,823
*Estimated regulatory capital ratios for the quarter ended March 31, 2015 were calculated in accordance with the Basel III capital framework.
BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
Mar-15 Dec-14 Sep-14 Jun-14 Mar-14
------ ------ ------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from banks $199,337 $204,231 $169,226 $201,196 $199,214
Interest bearing deposits with other
banks 360,469 153,019 70,408 44,949 390,896
Available-for-sale securities, at fair
value 2,194,373 2,156,927 2,211,462 2,332,192 2,426,758
Loans and leases 9,761,555 9,749,540 9,546,250 9,347,429 9,103,850
Less: Unearned income 34,585 36,604 35,708 35,768 35,474
Allowance for credit losses 136,660 142,443 143,950 147,132 149,704
Net loans and leases 9,590,310 9,570,493 9,366,592 9,164,529 8,918,672
Loans held for sale 186,510 141,015 137,005 105,643 62,867
Premises and equipment, net 305,335 304,943 307,497 310,515 314,367
Accrued interest receivable 42,933 41,985 42,311 40,697 42,666
Goodwill 291,498 291,498 291,498 291,498 286,800
Other identifiable intangibles 23,476 24,508 25,619 26,745 25,021
Bank owned life insurance 246,148 247,076 243,827 241,962 240,077
Other real estate owned 27,889 33,984 42,691 55,253 63,595
Other assets 162,044 156,690 163,421 170,708 172,622
Total Assets $13,630,322 $13,326,369 $13,071,557 $12,985,887 $13,143,555
=========== =========== =========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest bearing $2,914,949 $2,778,686 $2,811,156 $2,718,242 $2,725,042
Interest bearing 4,979,710 4,868,054 4,498,275 4,511,760 4,583,481
Savings 1,395,857 1,331,963 1,311,874 1,299,203 1,297,344
Other time 1,962,138 1,993,636 2,080,232 2,141,209 2,205,923
Total deposits 11,252,654 10,972,339 10,701,537 10,670,414 10,811,790
Federal funds purchased and
securities sold under agreement
to repurchase 384,829 388,166 431,428 394,446 456,303
Short-term Federal Home Loan Bank borrowings
and other short-term borrowing 1,500 3,500 2,000 2,000 -
Accrued interest payable 3,371 3,400 3,894 3,926 4,050
Junior subordinated debt securities 23,198 23,198 23,198 23,198 23,198
Long-term debt 76,055 78,148 81,742 83,835 85,835
Other liabilities 243,507 251,559 217,215 219,218 207,703
Total Liabilities 11,985,114 11,720,310 11,461,014 11,397,037 11,588,879
Shareholders' Equity
--------------------
Common stock 241,361 240,637 240,165 240,118 240,012
Capital surplus 331,016 324,271 322,488 321,952 320,969
Accumulated other comprehensive loss (37,033) (43,686) (15,513) (15,040) (22,060)
Retained earnings 1,109,864 1,084,837 1,063,403 1,041,820 1,015,755
Total Shareholders' Equity 1,645,208 1,606,059 1,610,543 1,588,850 1,554,676
Total Liabilities & Shareholders' Equity $13,630,322 $13,326,369 $13,071,557 $12,985,887 $13,143,555
=========== =========== =========== =========== ===========
BancorpSouth, Inc.
Consolidated Average Balance Sheets
(Unaudited)
Mar-15 Dec-14 Sep-14 Jun-14 Mar-14
------ ------ ------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from banks $132,734 $166,941 $155,876 $157,813 $168,056
Interest bearing deposits with other
banks 426,792 165,713 120,707 145,530 449,207
Available-for-sale securities, at fair
value 2,190,989 2,180,000 2,272,114 2,394,045 2,452,178
Loans and leases 9,706,941 9,615,125 9,430,043 9,269,469 9,058,081
Less: Unearned income 35,954 36,066 36,334 36,726 35,926
Allowance for credit losses 141,299 143,842 146,592 149,676 153,615
Net loans and leases 9,529,688 9,435,217 9,247,117 9,083,067 8,868,540
Loans held for sale 109,291 113,493 105,964 53,676 35,297
Premises and equipment, net 305,277 306,630 309,373 313,012 315,804
Accrued interest receivable 39,279 39,034 38,758 38,291 39,336
Goodwill 291,498 291,498 291,498 293,082 286,800
Other identifiable intangibles 23,834 24,910 26,031 25,271 25,420
Bank owned life insurance 246,538 245,584 242,718 240,736 239,969
Other real estate owned 32,062 39,209 49,123 60,822 69,086
Other assets 129,686 122,901 127,824 128,534 137,435
Total Assets $13,457,668 $13,131,130 $12,987,103 $12,933,879 $13,087,128
=========== =========== =========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest bearing $2,807,816 $2,837,919 $2,766,626 $2,683,939 $2,647,376
Interest bearing 4,985,577 4,617,998 4,480,008 4,492,495 4,657,785
Savings 1,358,565 1,321,000 1,308,184 1,298,829 1,260,838
Other time 1,974,252 2,025,277 2,108,023 2,174,814 2,259,309
Total deposits 11,126,210 10,802,194 10,662,841 10,650,077 10,825,308
Federal funds purchased and
securities sold under agreement
to repurchase 398,237 426,842 444,017 435,505 458,436
Short-term Federal Home Loan Bank borrowings
and other short-term borrowing 3,056 2,261 6,489 3,621 -
Accrued interest payable 3,338 3,630 3,940 3,926 4,400
Junior subordinated debt securities 23,198 23,198 23,198 23,198 23,748
Long-term debt 76,078 79,387 81,742 83,967 87,767
Other liabilities 203,055 180,379 164,155 158,997 149,572
Total Liabilities 11,833,172 11,517,891 11,386,382 11,359,291 11,549,231
Shareholders' Equity
--------------------
Common stock 240,992 240,436 240,123 240,071 238,853
Capital surplus 326,476 323,372 322,219 321,628 314,117
Accumulated other comprehensive loss (39,529) (22,747) (14,827) (16,663) (23,644)
Retained earnings 1,096,557 1,072,178 1,053,206 1,029,552 1,008,571
Total Shareholders' Equity 1,624,496 1,613,239 1,600,721 1,574,588 1,537,897
Total Liabilities & Shareholders' Equity $13,457,668 $13,131,130 $12,987,103 $12,933,879 $13,087,128
=========== =========== =========== =========== ===========
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended YTD
------------- ---
Mar-15 Dec-14 Sep-14 Jun-14 Mar-14 Mar-15 Mar-14
------ ------ ------ ------ ------ ------ ------
INTEREST REVENUE:
Loans and leases $102,135 $103,172 $102,681 $99,962 $98,744 $102,135 $98,744
Deposits with other banks 236 101 68 87 276 236 276
Available-for-sale securities:
Taxable 6,844 6,429 6,646 7,133 7,547 6,844 7,547
Tax-exempt 3,377 3,471 3,607 3,669 3,715 3,377 3,715
Loans held for sale 905 1,064 920 648 317 905 317
--- ----- --- --- --- --- ---
Total interest revenue 113,497 114,237 113,922 111,499 110,599 113,497 110,599
------- ------- ------- ------- ------- ------- -------
INTEREST EXPENSE:
Interest bearing demand 2,183 2,070 1,956 1,905 1,920 2,183 1,920
Savings 412 411 410 402 391 412 391
Other time 4,008 4,453 5,083 5,249 5,890 4,008 5,890
Federal funds purchased and securities sold
under agreement to
repurchase 82 89 84 80 78 82 78
Long-term debt 577 603 612 619 629 577 629
Junior subordinated debt 163 165 164 162 168 163 168
Other (1) 1 - 1 - (1) -
--- --- --- --- --- --- ---
Total interest expense 7,424 7,792 8,309 8,418 9,076 7,424 9,076
----- ----- ----- ----- ----- ----- -----
Net interest revenue 106,073 106,445 105,613 103,081 101,523 106,073 101,523
Provision for credit
losses (5,000) - - - - (5,000) -
------ --- --- --- --- ------ ---
Net interest revenue, after provision for
credit losses 111,073 106,445 105,613 103,081 101,523 111,073 101,523
------- ------- ------- ------- ------- ------- -------
NONINTEREST REVENUE:
Mortgage lending 8,567 3,250 6,938 9,089 3,394 8,567 3,394
Credit card, debit card
and merchant fees 8,539 9,921 8,972 8,567 7,843 8,539 7,843
Deposit service charges 11,252 12,538 13,111 12,437 12,536 11,252 12,536
Security gains (losses),
net 14 18 18 5 (4) 14 (4)
Insurance commissions 33,493 25,376 29,246 28,621 31,599 33,493 31,599
Wealth Management 6,210 5,826 5,961 5,828 5,916 6,210 5,916
Other 5,240 6,584 5,032 5,291 5,233 5,240 5,233
----- ----- ----- ----- ----- ----- -----
Total noninterest revenue 73,315 63,513 69,278 69,838 66,517 73,315 66,517
------ ------ ------ ------ ------ ------ ------
NONINTEREST EXPENSE:
Salaries and employee
benefits 81,179 76,751 77,453 74,741 78,883 81,179 78,883
Occupancy, net of rental
income 10,194 10,500 10,313 10,245 10,287 10,194 10,287
Equipment 3,974 3,996 4,205 4,169 4,499 3,974 4,499
Deposit insurance
assessments 2,311 2,430 2,125 2,035 1,600 2,311 1,600
Other 39,275 36,369 39,603 36,764 31,438 39,275 31,438
------ ------ ------ ------ ------ ------ ------
Total noninterest
expenses 136,933 130,046 133,699 127,954 126,707 136,933 126,707
------- ------- ------- ------- ------- ------- -------
Income before income
taxes 47,455 39,912 41,192 44,965 41,333 47,455 41,333
Income tax expense 15,189 11,252 12,414 14,097 12,889 15,189 12,889
------ ------ ------ ------ ------ ------ ------
Net income $32,266 $28,660 $28,778 $30,868 $28,444 $32,266 $28,444
======= ======= ======= ======= ======= ======= =======
Net
income
per
share: Basic $0.33 $0.30 $0.30 $0.32 $0.30 $0.33 $0.30
=====
Diluted $0.33 $0.30 $0.30 $0.32 $0.30 $0.33 $0.30
=====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Mar-15 Dec-14 Sep-14 Jun-14 Mar-14
------ ------ ------ ------ ------
LOAN AND LEASE PORTFOLIO:
Commercial and industrial $1,676,366 $1,746,486 $1,714,012 $1,699,803 $1,581,251
Real estate
Consumer mortgages 2,301,112 2,257,726 2,191,265 2,071,503 2,047,001
Home equity 538,042 531,374 518,263 506,988 498,283
Agricultural 236,898 239,616 242,023 238,003 229,602
Commercial and industrial-owner occupied 1,518,153 1,522,536 1,508,679 1,505,679 1,488,380
Construction, acquisition and development 892,730 853,623 819,636 772,162 748,027
Commercial real estate 1,993,473 1,961,977 1,916,577 1,901,759 1,847,983
Credit cards 106,287 113,426 109,464 109,186 105,988
All other 463,909 486,172 490,623 506,578 521,861
------- ------- ------- ------- -------
Total loans $9,726,970 $9,712,936 $9,510,542 $9,311,661 $9,068,376
---------- ---------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period $142,443 $143,950 $147,132 $149,704 $153,236
Loans and leases charged-off:
Commercial and industrial (383) (1,179) (306) (860) (201)
Real estate
Consumer mortgages (892) (900) (1,510) (1,682) (1,945)
Home equity (498) (93) (510) (438) (318)
Agricultural (8) (4) (47) (18) (696)
Commercial and industrial-owner occupied (394) (220) (1,229) (936) (1,206)
Construction, acquisition and development (343) (566) (1,458) (41) (1,666)
Commercial real estate (1,007) (463) (70) (361) (901)
Credit cards (676) (580) (612) (608) (559)
All other (579) (847) (743) (671) (583)
Total loans charged-off (4,780) (4,852) (6,485) (5,615) (8,075)
------ ------ ------ ------ ------
Recoveries:
Commercial and industrial 502 298 565 359 1,076
Real estate
Consumer mortgages 612 821 952 956 538
Home equity 241 102 157 182 184
Agricultural 269 16 45 26 9
Commercial and industrial-owner occupied 550 216 460 78 358
Construction, acquisition and development 604 897 392 808 1,637
Commercial real estate 720 623 286 226 323
Credit cards 153 160 116 135 131
All other 346 212 330 273 287
Total recoveries 3,997 3,345 3,303 3,043 4,543
----- ----- ----- ----- -----
Net charge-offs (783) (1,507) (3,182) (2,572) (3,532)
Provision charged to operating expense (5,000) - - - -
Balance, end of period $136,660 $142,443 $143,950 $147,132 $149,704
-------- -------- -------- -------- --------
Average loans for period $9,670,987 $9,579,059 $9,393,709 $9,232,743 $9,022,155
========== ========== ========== ========== ==========
Ratio:
Net charge-offs to average loans (annualized) 0.03% 0.06% 0.13% 0.11% 0.16%
==== ==== ==== ==== ====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Mar-15 Dec-14 Sep-14 Jun-14 Mar-14
------ ------ ------ ------ ------
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial $3,923 $3,934 $2,786 $2,917 $3,023
Real estate
Consumer mortgages 21,435 23,668 23,408 24,355 24,353
Home equity 2,269 2,253 2,073 2,116 2,740
Agricultural 259 291 638 595 651
Commercial and industrial-owner occupied 9,687 11,190 7,495 11,094 14,122
Construction, acquisition and development 5,111 4,162 6,070 9,202 9,968
Commercial real estate 11,107 11,915 11,102 13,406 21,496
Credit cards 118 133 168 132 168
All other 509 506 872 716 1,010
--- --- --- --- -----
Total nonaccrual loans and leases $54,418 $58,052 $54,612 $64,533 $77,531
------- ------- ------- ------- -------
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and industrial $30 $41 $60 $302 $287
Real estate
Consumer mortgages 1,256 1,828 1,590 1,607 1,307
Home equity - - 20 116 12
Agricultural - - - 100 -
Commercial and industrial-owner occupied - 39 - - -
Construction, acquisition and development - 387 - - -
Commercial real estate - 137 - - -
Credit cards 329 327 255 281 297
All other - 4 - - 46
Total loans and leases 90+ days past due, still
accruing 1,615 2,763 1,925 2,406 1,949
----- ----- ----- ----- -----
Restructured Loans and Leases, Still Accruing 5,433 10,920 12,398 6,712 13,776
Total non-performing loans and leases 61,466 71,735 68,935 73,651 93,256
------ ------ ------ ------ ------
OTHER REAL ESTATE OWNED: 27,889 33,984 42,691 55,253 63,595
------ ------ ------ ------ ------
Total Non-performing Assets $89,355 $105,719 $111,626 $128,904 $156,851
======= ======== ======== ======== ========
Additions to Nonaccrual Loans and Leases During
the Quarter $23,607 $21,952 $16,707 $13,748 $22,479
======= ======= ======= ======= =======
Loans and Leases 30-89 Days Past Due, Still Accruing:
Commercial and industrial $3,270 $2,319 $3,753 $3,605 $2,616
Real estate
Consumer mortgages 9,955 11,412 13,013 11,448 12,236
Home equity 2,594 2,047 1,315 960 1,587
Agricultural 161 366 190 1,122 302
Commercial and industrial-owner occupied 3,026 912 2,364 6,340 3,248
Construction, acquisition and development 5,471 4,811 1,036 1,616 2,848
Commercial real estate 3,032 1,510 926 1,658 3,953
Credit cards 581 739 602 556 592
All other 1,014 1,698 1,196 1,490 963
----- ----- ----- ----- ---
Total Loans and Leases 30-89 days past due,
still accruing $29,104 $25,814 $24,395 $28,795 $28,345
======= ======= ======= ======= =======
Credit Quality Ratios:
Provision for credit losses to average loans
and leases (annualized) (0.21%) 0.00% 0.00% 0.00% 0.00%
Allowance for credit losses to net loans and
leases 1.40% 1.47% 1.51% 1.58% 1.65%
Allowance for credit losses to non-performing
loans and leases 222.33% 198.57% 208.82% 199.77% 160.53%
Allowance for credit losses to non-performing
assets 152.94% 134.74% 128.96% 114.14% 95.44%
Non-performing loans and leases to net loans
and leases 0.63% 0.74% 0.72% 0.79% 1.03%
Non-performing assets to net loans and leases 0.92% 1.09% 1.17% 1.38% 1.73%
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
March 31, 2015
--------------
Special
Pass Mention Substandard Doubtful Loss Impaired Total
---- ------- ----------- -------- ---- -------- -----
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial $1,642,264 $961 $31,202 $99 $ - $1,840 $1,676,366
Real estate
Consumer mortgages 2,218,792 - 78,928 227 - 3,165 2,301,112
Home equity 527,726 - 9,706 - - 610 538,042
Agricultural 225,990 - 10,908 - - - 236,898
Commercial and industrial-owner occupied 1,457,229 - 54,801 242 - 5,881 1,518,153
Construction, acquisition and development 851,938 - 37,303 329 - 3,160 892,730
Commercial real estate 1,923,659 - 59,497 300 - 10,017 1,993,473
Credit cards 106,287 - - - - - 106,287
All other 451,174 - 12,571 - - 164 463,909
Total loans $9,405,059 $961 $294,916 $1,197 $ - $24,837 $9,726,970
========== ==== ======== ====== ================== ======= ==========
December 31, 2014
-----------------
Special
Pass Mention Substandard Doubtful Loss Impaired Total
---- ------- ----------- -------- ---- -------- -----
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial $1,709,475 $978 $33,879 $ - $ - $2,154 $1,746,486
Real estate
Consumer mortgages 2,167,965 - 84,975 - - 4,786 2,257,726
Home equity 521,011 - 9,744 - - 619 531,374
Agricultural 227,688 - 11,928 - - - 239,616
Commercial and industrial-owner occupied 1,450,158 - 64,420 491 - 7,467 1,522,536
Construction, acquisition and development 811,227 - 39,675 334 - 2,387 853,623
Commercial real estate 1,893,514 - 57,761 184 - 10,518 1,961,977
Credit cards 113,426 - - - - - 113,426
All other 471,662 - 14,340 - - 170 486,172
Total loans $9,366,126 $978 $316,722 $1,009 $ - $28,101 $9,712,936
========== ==== ======== ====== ================== ======= ==========
BancorpSouth, Inc.
Geographical Information
(Dollars in thousands)
(Unaudited)
March 31, 2015
--------------
Alabama
and Florida
Panhandle Arkansas Louisiana Mississippi Missouri Tennessee Texas Other Total
--------- -------- --------- ----------- -------- --------- ----- ----- -----
LOAN AND LEASE PORTFOLIO:
Commercial and industrial $189,823 $208,990 $217,749 $555,594 $77,274 $135,672 $267,825 $23,439 $1,676,366
Real estate
Consumer mortgages 195,923 286,833 193,390 774,883 68,048 239,586 374,743 167,706 2,301,112
Home equity 74,805 37,890 56,275 212,510 21,507 125,541 8,063 1,451 538,042
Agricultural 6,515 71,542 29,253 70,036 2,725 12,567 44,260 - 236,898
Commercial and industrial-owner occupied 176,298 175,152 177,340 572,800 58,596 158,062 199,905 - 1,518,153
Construction, acquisition and development 128,479 91,070 87,238 287,700 22,758 141,940 113,706 19,839 892,730
Commercial real estate 288,445 336,170 247,765 486,219 201,241 179,111 204,190 50,332 1,993,473
Credit cards - - - - - - - 106,287 106,287
All other 29,303 36,893 27,073 200,233 2,603 38,034 37,469 92,301 463,909
Total loans $1,089,591 $1,244,540 $1,036,083 $3,159,975 $454,752 $1,030,513 $1,250,161 $461,355 $9,726,970
========== ========== ========== ========== ======== ========== ========== ======== ==========
NON-PERFORMING LOANS AND LEASES:
Commercial and industrial $1,227 $438 $579 $1,720 $ - $ - $69 $143 $4,176
Real estate
Consumer mortgages 193 1,888 833 9,005 777 2,008 864 7,799 23,367
Home equity 775 43 514 319 87 528 - 3 2,269
Agricultural 79 31 14 73 - 61 - 1 259
Commercial and industrial-owner occupied 293 1,043 1,033 8,222 973 938 81 2 12,585
Construction, acquisition and development 906 196 - 1,067 255 2,692 - 2 5,118
Commercial real estate - 259 2,082 4,147 445 4,502 300 - 11,735
Credit cards - - - - - - - 1,345 1,345
All other - 42 138 238 - 193 - 1 612
--- --- --- --- --- --- --- ---
Total loans $3,473 $3,940 $5,193 $24,791 $2,537 $10,922 $1,314 $9,296 $61,466
====== ====== ====== ======= ====== ======= ====== ====== =======
NON-PERFORMING LOANS AND LEASES
AS A PERCENTAGE OF OUTSTANDING:
Commercial and industrial 0.65% 0.21% 0.27% 0.31% 0.00% 0.00% 0.03% 0.61% 0.25%
Real estate
Consumer mortgages 0.10% 0.66% 0.43% 1.16% 1.14% 0.84% 0.23% 4.65% 1.02%
Home equity 1.04% 0.11% 0.91% 0.15% 0.40% 0.42% 0.00% 0.21% 0.42%
Agricultural 1.21% 0.04% 0.05% 0.10% 0.00% 0.49% 0.00% 0.00% 0.11%
Commercial and industrial-owner occupied 0.17% 0.60% 0.58% 1.44% 1.66% 0.59% 0.04% 0.00% 0.83%
Construction, acquisition and development 0.71% 0.22% 0.00% 0.37% 1.12% 1.90% 0.00% 0.01% 0.57%
Commercial real estate 0.00% 0.08% 0.84% 0.85% 0.22% 2.51% 0.15% 0.00% 0.59%
Credit cards - - - - - - - 1.27% 1.27%
All other 0.00% 0.11% 0.51% 0.12% 0.00% 0.51% 0.00% 0.00% 0.13%
Total loans 0.32% 0.32% 0.50% 0.78% 0.56% 1.06% 0.11% 2.01% 0.63%
==== ==== ==== ==== ==== ==== ==== ==== ====
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
March 31, 2015
--------------
Alabama
and Florida
Panhandle Arkansas Louisiana Mississippi Missouri Tennessee Texas Other Total
--------- -------- --------- ----------- -------- --------- ----- ----- -----
OTHER REAL ESTATE OWNED:
Commercial and industrial $84 $ - $ - $ - $ - $ - $ - $ - $84
Real estate
Consumer mortgages 264 79 25 1,289 - 38 4 - 1,699
Home equity - - - 101 - - - - 101
Agricultural - - - 25 - - - - 25
Commercial and industrial-owner occupied 199 - - 1,424 - 307 60 - 1,990
Construction, acquisition and development 3,886 84 139 16,069 - 2,627 - - 22,805
Commercial real estate 170 - - 646 - 121 63 - 1,000
All other - 27 - 99 - 59 - - 185
Total loans $4,603 $190 $164 $19,653 $ - $3,152 $127 $ - $27,889
====== ==== ==== ======= ================== ====== ==== ============= =======
Quarter Ended
-------------
Mar-15 Dec-14 Sep-14 Jun-14 Mar-14
------ ------ ------ ------ ------
OTHER REAL ESTATE OWNED:
Balance, beginning of period $33,984 $42,691 $55,253 $63,595 $69,338
Additions to foreclosed properties
New foreclosed property 2,804 2,257 3,476 4,144 4,855
Reductions in foreclosed properties
Sales (6,726) (8,548) (14,429) (10,269) (8,767)
Writedowns (2,173) (2,416) (1,609) (2,217) (1,831)
Balance, end of period $27,889 $33,984 $42,691 $55,253 $63,595
======= ======= ======= ======= =======
FORECLOSED PROPERTY EXPENSE
(Gain) Loss on sale of other real estate
owned $(779) $1,643 $3,289 $1,073 $466
Writedown of other real estate owned 2,173 2,416 1,609 2,217 1,831
Other foreclosed property expense 577 534 823 912 258
Total foreclosed property expense $1,971 $4,593 $5,721 $4,202 $2,555
====== ====== ====== ====== ======
BancorpSouth, Inc.
Noninterest Revenue and Expense
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Mar-15 Dec-14 Sep-14 Jun-14 Mar-14
------ ------ ------ ------ ------
NONINTEREST REVENUE:
Mortgage lending $8,567 $3,250 $6,938 $9,089 $3,394
Credit card, debit card and
merchant fees 8,539 9,921 8,972 8,567 7,843
Deposit service charges 11,252 12,538 13,111 12,437 12,536
Securities gains, net 14 18 18 5 (4)
Insurance commissions 33,493 25,376 29,246 28,621 31,599
Trust income 4,036 3,791 3,537 3,624 3,568
Annuity fees 558 540 461 695 772
Brokerage commissions and fees 1,616 1,495 1,963 1,509 1,576
Bank-owned life insurance 1,899 3,249 1,865 1,885 1,849
Other miscellaneous income 3,341 3,335 3,167 3,406 3,384
Total noninterest revenue $73,315 $63,513 $69,278 $69,838 $66,517
======= ======= ======= ======= =======
NONINTEREST EXPENSE:
Salaries and employee benefits $81,179 $76,751 $77,453 $74,741 $78,883
Occupancy, net of rental income 10,194 10,500 10,313 10,245 10,287
Equipment 3,974 3,996 4,205 4,169 4,499
Deposit insurance assessments 2,311 2,430 2,125 2,035 1,600
Amortization of bond issue cost 12 12 12 12 12
Advertising 781 1,233 1,192 1,331 632
Foreclosed property expense 1,971 4,593 5,721 4,202 2,555
Telecommunications 1,922 1,960 2,254 2,258 2,248
Public relations 570 770 950 857 822
Data processing 5,393 4,804 5,317 5,384 5,230
Computer software 2,606 2,763 2,488 2,851 2,423
Amortization of intangibles 1,032 1,111 1,126 1,148 1,058
Legal 7,681 2,322 2,620 3,002 1,878
Merger expense (2) 4 188 1,010 560
Postage and shipping 1,172 1,239 1,103 1,116 1,287
Other miscellaneous expense 16,137 15,558 16,632 13,593 12,733
Total noninterest expense $136,933 $130,046 $133,699 $127,954 $126,707
======== ======== ======== ======== ========
INSURANCE COMMISSIONS:
Property and casualty
commissions $20,673 $19,007 $22,746 $21,576 $19,987
Life and health commissions 5,412 5,521 5,128 5,549 5,010
Risk management income 666 621 708 617 705
Other 6,742 227 664 879 5,897
Total insurance commissions $33,493 $25,376 $29,246 $28,621 $31,599
======= ======= ======= ======= =======
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Mar-15 Dec-14 Sep-14 Jun-14 Mar-14
------ ------ ------ ------ ------
MORTGAGE SERVICING RIGHTS:
Fair value, beginning of period $51,296 $53,759 $52,272 $53,436 $54,662
Additions to mortgage servicing rights:
Originations of servicing assets 2,499 2,453 2,400 2,565 1,460
Changes in fair value:
Due to payoffs/paydowns (1,564) (1,480) (1,559) (1,616) (1,138)
Due to change in valuation inputs or
assumptions used in the valuation
model (3,039) (3,434) 648 (2,111) (1,547)
Other changes in fair value (2) (2) (2) (2) (1)
Fair value, end of period $49,190 $51,296 $53,759 $52,272 $53,436
======= ======= ======= ======= =======
Production revenue:
Origination $8,914 $3,949 $3,736 $8,758 $1,964
Servicing 4,256 4,215 4,113 4,058 4,115
Payoffs/Paydowns (1,564) (1,480) (1,559) (1,616) (1,138)
------ ------ ------ ------ ------
Total production revenue 11,606 6,684 6,290 11,200 4,941
Market value adjustment (3,039) (3,434) 648 (2,111) (1,547)
------ ------ --- ------ ------
Total mortgage lending revenue $8,567 $3,250 $6,938 $9,089 $3,394
====== ====== ====== ====== ======
Mortgage loans serviced $5,705,638 $5,686,756 $5,649,897 $5,630,192 $5,568,828
MSR/mtg loans serviced 0.86% 0.90% 0.95% 0.93% 0.96%
AVAILABLE-FOR-SALE SECURITIES, at fair value
U.S. Government agencies $1,286,981 $1,215,054 $1,238,088 $1,333,368 $1,419,269
Government agency issued residential
mortgage-back securities 200,381 209,230 218,748 229,414 241,596
Government agency issued commercial
mortgage-back securities 227,409 240,568 237,325 237,321 234,059
Obligations of states and political
subdivisions 471,539 483,864 509,304 520,897 523,811
Other 8,063 8,211 7,997 11,192 8,023
Total available-for-sale securities $2,194,373 $2,156,927 $2,211,462 $2,332,192 $2,426,758
========== ========== ========== ========== ==========
BancorpSouth, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in thousands, except per share amounts)
(Unaudited)
Management evaluates the Company's capital position and operating performance by utilizing certain financial measures not calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including pre-tax, pre-provision earnings, net
operating income, tangible shareholders' equity to tangible assets, return on tangible equity, pre-tax pre-provision return on average assets, tangible book value per share, and operating earnings per share. The Company has included these non-GAAP
financial measures in this news release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures (i) provides important supplemental information that contributes to a proper understanding of
the Company's operating performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to Management, the financial
services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not
be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition,
because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names.
Reconciliation of Pre-tax, Pre-provision Earnings and Net Operating Income to Net Income:
Quarter ended
-------------
3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
--------- ---------- --------- --------- ---------
Net income $32,266 $28,660 $28,778 $30,868 $28,444
Plus: Provision for credit
losses (5,000) - - - -
Income tax expense 15,189 11,252 12,414 14,097 12,889
Pre-tax, pre-provision earnings $42,455 $39,912 $41,192 $44,965 $41,333
======= ======= ======= ======= =======
Net income $32,266 $28,660 $28,778 $30,868 $28,444
Plus: Merger expense, net of
tax (1) 2 117 626 347
One time charge for BSA,
net of tax - - 1,903 - -
Net operating income $32,265 $28,662 $30,798 $31,494 $28,791
======= ======= ======= ======= =======
BancorpSouth, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in thousands, except per share amounts)
(Unaudited)
Reconciliation of Tangible Assets and Tangible Shareholders' Equity to
Total Assets and Total Shareholders' Equity:
Quarter ended
-------------
3/31/2015 12/31/2014 9/30/2014 6/30/2014 3/31/2014
--------- ---------- --------- --------- ---------
Tangible assets
Total assets $13,630,322 $13,326,369 $13,071,557 $12,985,887 $13,143,555
Less: Goodwill 291,498 291,498 291,498 291,498 286,800
Other identifiable
intangible assets 23,476 24,508 25,619 26,745 25,021
Total tangible assets $13,315,348 $13,010,363 $12,754,440 $12,667,644 $12,831,734
Tangible shareholders' equity
Total shareholders' equity $1,645,208 $1,606,059 $1,610,543 $1,588,850 $1,554,676
Less: Goodwill 291,498 291,498 291,498 291,498 286,800
Other identifiable
intangible assets 23,476 24,508 25,619 26,745 25,021
Total tangible shareholders' equity $1,330,234 $1,290,053 $1,293,426 $1,270,607 $1,242,855
Total average assets $13,457,668 $13,131,130 $12,987,103 $12,933,879 $13,087,128
Total common shares outstanding 96,544,502 96,254,903 96,065,021 96,046,057 96,004,679
Average shares outstanding-diluted 96,653,401 96,506,827 96,373,950 96,373,121 95,952,611
Tangible shareholders' equity to tangible
assets* 9.99% 9.92% 10.14% 10.03% 9.69%
Return on tangible equity ** 9.84% 8.81% 8.83% 9.74% 9.28%
Pre-tax pre-provision return on average
assets *** 1.29% 1.21% 1.26% 1.39% 1.28%
Tangible book value per share**** $13.78 $13.40 $13.46 $13.23 $12.95
Operating earnings per share***** $0.33 $0.30 $0.32 $0.33 $0.30
* Tangible shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less
goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill and
other identifiable intangible assets.
** Return on tangible equity is defined by the Company as annualized net income divided by tangible shareholders'
equity.
*** Pre-tax pre-provision return on average assets is defined by the Company as annualized pre-tax pre-provision
earnings divided by total average assets.
**** Tangible book value per share is defined by the Company as tangible shareholders' equity divided by total common
shares outstanding.
***** Operating earnings per share is defined by the Company as net operating income divided by average shares
outstanding-diluted.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bancorpsouth-announces-first-quarter-2015-financial-results-300068836.html
SOURCE BancorpSouth, Inc.
