TUPELO, Miss., Jan. 21, 2015 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and year ended December 31, 2014.
Highlights for the fourth quarter of 2014 included:
-- Net income of $28.7 million or $0.30 per diluted share. -- Net operating income of $28.7 million or $0.30 per diluted share. -- Earnings adversely impacted by negative mortgage servicing rights ("MSR") valuation adjustment of $3.4 million. -- Generated net loan growth of $202.4 million, which resulted in total net loan growth of $754.9 million, or 8.4 percent for the year. -- Net interest margin remained stable at 3.60 percent compared to 3.62 percent for the third quarter of 2014. -- Announced authorization of stock repurchase program through November 30, 2016 to purchase up to 6 percent or 5,764,000 shares of BancorpSouth's outstanding common stock.
The Company reported net income of $28.7 million, or $0.30 per diluted share, for the fourth quarter of 2014 compared with net income of $27.7 million, or $0.29 per diluted share, for the fourth quarter of 2013 and net income of $28.8 million, or $0.30 per diluted share, for the third quarter of 2014. Additionally, the Company reported net income of $116.8 million, or $1.21 per diluted share, for the year ended December 31, 2014 compared to $94.1 million, or $0.99 per diluted share, for the year ended December 31, 2013.
The Company reported net operating income (excluding merger related and other non-operating expenses) of $28.7 million, or $0.30 per diluted share, for the fourth quarter of 2014 compared to $27.7 million, or $0.29 per diluted share, for the fourth quarter of 2013 and $30.8 million, or $0.32 per diluted share, for the third quarter of 2014.
"Our fourth quarter results reflect continued momentum in several key areas of our Company's performance, highlighted by another outstanding quarter of loan production," remarked Dan Rollins, Chairman and Chief Executive Officer. "Our lending team produced net loan growth of over $200 million, or 8 percent annualized, for the quarter which resulted in loan growth of over $750 million for the year. We are pleased with our ability to continue to maintain our net interest margin in a relatively steady range by offsetting pressure on loan yields with continued reductions in our cost of funding. Earnings for the quarter were adversely impacted by the $3.4 million MSR valuation adjustment as well as expected seasonality in our insurance revenue stream. Finally, we are pleased with the progress made toward remediating our compliance issues and are hopeful our regulators will recognize the outstanding work our team has produced."
Net Interest Revenue
Net interest revenue was $106.4 million for the fourth quarter of 2014, an increase of 3.9 percent from $102.4 million for the fourth quarter of 2013 and an increase of 0.8 percent from $105.6 million for the third quarter of 2014. The fully taxable equivalent net interest margin was 3.60 percent for the fourth quarter of 2014 compared to 3.52 percent for the fourth quarter of 2013 and 3.62 percent for the third quarter of 2014. Yields on loans and leases declined to 4.30 percent for the fourth quarter of 2014 compared with 4.52 percent for the fourth quarter of 2013 and 4.36 percent for the third quarter of 2014, while yields on total interest earning assets were relatively flat at 3.85 percent for the fourth quarter of 2014 compared with 3.86 percent for the fourth quarter of 2013 and 3.89 percent for the third quarter of 2014. The average cost of deposits was 0.25 percent for the fourth quarter of 2014 compared to 0.34 percent for the fourth quarter of 2013 and 0.28 percent for the third quarter of 2014.
Asset, Deposit and Loan Activity
Total assets were $13.3 billion at December 31, 2014 compared with $13.0 billion at December 31, 2013. Loans and leases, net of unearned income, were $9.7 billion at December 31, 2014 compared with $9.0 billion at December 31, 2013.
Total deposits were $11.0 billion at December 31, 2014 compared with $10.8 billion at December 31, 2013. The decrease in time deposits of $319.0 million, or 13.8 percent, at December 31, 2014 compared to December 31, 2013 was offset by growth in other lower cost deposits. Noninterest bearing demand deposits increased $134.1 million, or 5.1 percent, over the same period. Additionally, savings deposits increased $97.8 million, or 7.9 percent, while interest bearing demand deposits increased $285.6 million, or 6.2 percent, over the same period. As of December 31, 2014, $659.9 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.66 percent.
Provision for Credit Losses and Allowance for Credit Losses
Earnings for the quarter reflect no recorded provision for credit losses, which is consistent with no recorded provision for both the third quarter of 2014 and the fourth quarter of 2013. Total non-performing assets ("NPAs") declined $5.9 million, or 5.3 percent, to $105.7 million at December 31, 2014 compared with $111.6 million at September 30, 2014 and declined $84.0 million, or 44.3 percent, from $189.7 million at December 31, 2013.
Net charge-offs for the fourth quarter of 2014 were $1.5 million, compared with $0.7 million for the fourth quarter of 2013 and $3.2 million for the third quarter of 2014. Recoveries of previously charged-off loans were $3.3 million for the fourth quarter of 2014, compared with $7.6 million for the fourth quarter of 2013 and $3.3 million for the third quarter of 2014. Annualized net charge-offs were 0.06 percent of average loans and leases for the fourth quarter of 2014, compared with 0.03 percent for the fourth quarter of 2013 and 0.13 percent for the third quarter of 2014.
Non-performing loans ("NPLs") were $71.7 million, or 0.74 percent of net loans and leases, at December 31, 2014, compared with $120.4 million, or 1.34 percent of net loans and leases, at December 31, 2013, and $68.9 million, or 0.72 percent of net loans and leases, at September 30, 2014. The allowance for credit losses was $142.4 million, or 1.47 percent of net loans and leases, at December 31, 2014 compared with $153.2 million, or 1.71 percent of net loans and leases, at December 31, 2013 and $144.0 million, or 1.51 percent of net loans and leases, at September 30, 2014.
NPLs at December 31, 2014 consisted primarily of $58.1 million of nonaccrual loans, compared with $54.6 million of nonaccrual loans at September 30, 2014. Payments received on nonaccrual loans during the fourth quarter of 2014 totaled $8.5 million, compared with payments received on such loans of $11.9 million during the third quarter of 2014. NPLs at December 31, 2014 also included $2.8 million of loans 90 days or more past due and still accruing, compared with $1.9 million of such loans at September 30, 2014, and included restructured loans still accruing of $10.9 million at December 31, 2014, compared with $12.4 million of such loans at September 30, 2014. Early stage past due loans, representing loans 30-89 days past due, totaled $25.8 million at December 31, 2014 compared to $24.4 million at September 30, 2014.
Included in nonaccrual loans at December 31, 2014 were $30.3 million of loans, or 52.2 percent of total nonaccrual loans, that were paying as agreed, compared with $31.7 million, or 58.1 percent of total nonaccrual loans, that were paying as agreed at September 30, 2014. These loans were generally placed on nonaccrual status because the collateral values were less than the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or would be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values. Such loans are generally deemed to be impaired, with a specific reserve established for the difference in the balance owed and the disposition value of the collateral.
Other real estate owned ("OREO") decreased $8.7 million to $34.0 million during the fourth quarter of 2014 from $42.7 million at September 30, 2014. This net decrease reflected $2.3 million of OREO added through foreclosure, offset by sales of OREO of $8.5 million. Write-downs in the value of existing properties were $2.4 million for the fourth quarter of 2014 compared to $1.6 million for the third quarter of 2014. Sales of OREO during the fourth quarter of 2014 resulted in a net loss of $1.6 million compared to a net loss of $3.3 million for the third quarter of 2014. At December 31, 2014, OREO was carried at 40.6 percent of the aggregate loan balances at the time of foreclosure, compared with 39.8 percent at September 30, 2014.
Noninterest Revenue
Noninterest revenue was $63.5 million for the fourth quarter of 2014, compared with $65.1 million for the fourth quarter of 2013 and $69.3 million for the third quarter of 2014. These results included a negative MSR valuation adjustment of $3.4 million for the fourth quarter of 2014 compared with a positive MSR valuation adjustment of $2.9 million for the fourth quarter of 2013 and a positive MSR valuation adjustment of $0.6 million for the third 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 $6.7 million for the fourth quarter of 2014, compared with $6.7 million for the fourth quarter of 2013 and $6.3 million for the third quarter of 2014. Mortgage origination volume for the fourth quarter of 2014 was $256.3 million, compared with $222.3 million for the fourth quarter of 2013 and $305.7 million for the third quarter of 2014.
Credit and debit card fee revenue was $9.9 million for the fourth quarter of 2014, compared with $8.3 million for the fourth quarter of 2013 and $9.0 million for the third quarter of 2014. Deposit service charge revenue was $12.5 million for the fourth quarter of 2014, compared with $13.6 million for the fourth quarter of 2013 and $13.1 million for the third quarter of 2014. Insurance commission revenue was $25.4 million for the fourth quarter of 2014, compared with $21.4 million for the fourth quarter of 2013 and $29.2 million for the third quarter of 2014. Wealth management revenue was $5.8 million for the fourth quarter of 2014, compared with $5.3 million for the fourth quarter of 2013 and $6.0 million for the third quarter of 2014.
Noninterest Expense
Noninterest expense for the fourth quarter of 2014 was $130.0 million, compared with $127.8 million for the fourth quarter of 2013 and $133.7 million for the third quarter of 2014. Salaries and employee benefits expense was $76.8 million for the fourth quarter of 2014 compared to $75.5 million for the fourth quarter of 2013 and $77.5 million for the third quarter of 2014. Foreclosed property expense was $4.6 million for the fourth quarter of 2014 compared with $2.8 million for the fourth quarter of 2013 and $5.7 million for the third quarter of 2014. Deposit insurance assessments were $2.4 million for the fourth quarter of 2014 compared to $2.7 million for the fourth quarter of 2013 and $2.1 million for the third quarter of 2014. Noninterest expense for the third quarter of 2014 included pre-tax costs totaling $3.1 million related to Bank Secrecy Act ("BSA") and anti-money-laundering ("AML") compliance remediation that were considered to be one-time in nature. This reflects the Company's estimate of total one-time costs necessary to complete its enhancements to its BSA and AML compliance programs.
Capital Management
BancorpSouth is a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 13.26 percent at December 31, 2014 and total risk based capital of 14.52 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for "well capitalized" classification. The Company's equity capitalization is comprised entirely of common stock. BancorpSouth's ratio of shareholders' equity to assets was 12.05 percent at December 31, 2014, compared with 11.61 percent at December 31, 2013 and 12.32 percent at September 30, 2014. The ratio of tangible shareholders' equity to tangible assets was 9.92 percent at December 31, 2014, compared with 9.44 percent at December 31, 2013 and 10.14 percent at September 30, 2014.
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 December 31, 2014, OIB, on a consolidated basis, reported total assets of $636.6 million, total loans of $460.6 million and total deposits of $527.8 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 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. 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 December 31, 2014, Central Community Corporation, on a consolidated basis, reported total assets of $1.4 billion, total loans of $595.4 million and total deposits of $1.1 billion. Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company's common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation's capital stock, subject to certain conditions and potential adjustments. The 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 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. 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 and the Current Report on Form 8-K that was previously filed with the SEC on September 4, 2014.
On April 9, 2014, BancorpSouth Insurance Services, Inc. acquired 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 financial results for 2014 reflect a great year of progress for our Company. We were able to grow loans by over $750 million, or 8 percent, during the year and improve our net interest margin meaningfully at the same time. Our insurance team produced considerable organic growth and our mortgage lenders continue to grow purchase money volume. We also made tremendous progress in dealing with remaining credit issues as NPAs declined by approximately 45 percent over the course of the year. All of these accomplishments were made while reducing total noninterest expense year-over-year. As we enter 2015, our Company objectives remain simple. We have to continue to sustain the growth momentum that's been built, continue to challenge our cost structure, and continue to ensure that we have the appropriate processes and procedures in place to comply with all regulatory requirements."
Conference Call
BancorpSouth will conduct a conference call to discuss its fourth quarter 2014 results on January 22, 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 $13.3 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 300 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 satisfy the requirements of the consent order issued by the FDIC and the Mississippi Department of Banking and Consumer Finance ("Mississippi Banking Department"), the Company's undertaking and performance of the necessary actions to remediate and fully resolve those concerns regarding the Company's procedures, systems and processes related to certain of its compliance programs, including its Bank Secrecy Act and anti-money-laundering programs, that have been identified by its federal bank regulators, 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 ability of the Company to resolve to the satisfaction of its federal bank regulators those identified concerns regarding the Company's procedures, systems and processes related to certain of its compliance programs, including its Bank Secrecy Act and anti-money laundering programs, the Company's ability to comply with the consent order issued by the FDIC and the Mississippi Banking Department, 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 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 ---------- --------- --------- --------- ---------- Earnings Summary: Interest revenue $114,237 $113,922 $111,499 $110,599 $112,510 Interest expense 7,792 8,309 8,418 9,076 10,093 ----- ----- ----- ----- ------ Net interest revenue 106,445 105,613 103,081 101,523 102,417 Provision for credit losses - - - - - --- --- --- --- --- Net interest revenue, after provision for credit losses 106,445 105,613 103,081 101,523 102,417 Noninterest revenue 63,513 69,278 69,838 66,517 65,125 Noninterest expense 130,046 133,699 127,954 126,707 127,830 ------- ------- ------- ------- ------- Income before income taxes 39,912 41,192 44,965 41,333 39,712 Income tax expense 11,252 12,414 14,097 12,889 12,014 ------ ------ ------ ------ ------ Net income $28,660 $28,778 $30,868 $28,444 $27,698 ======= ======= ======= ======= ======= Balance Sheet - Period End Balances Total assets $13,326,369 $13,071,557 $12,985,887 $13,143,555 $13,029,733 Total earning assets 12,163,897 11,929,416 11,794,445 11,948,897 11,814,060 Total securities 2,156,927 2,211,462 2,332,192 2,426,758 2,466,989 Loans and leases, net of unearned income 9,712,936 9,510,542 9,311,661 9,068,376 8,958,015 Allowance for credit losses 142,443 143,950 147,132 149,704 153,236 Total deposits 10,972,339 10,701,537 10,670,414 10,811,790 10,773,836 Long-term debt 78,148 81,742 83,835 85,835 81,714 Total shareholders' equity 1,606,059 1,610,543 1,588,850 1,554,676 1,513,130 Balance Sheet - Average Balances Total assets $13,131,130 $12,987,103 $12,933,879 $13,087,128 $12,955,127 Total earning assets 12,038,265 11,892,493 11,825,994 11,958,836 11,869,072 Total securities 2,180,000 2,272,114 2,394,045 2,452,178 2,511,888 Loans and leases, net of unearned income 9,579,059 9,393,709 9,232,743 9,022,155 8,830,917 Total deposits 10,802,194 10,662,841 10,650,077 10,825,308 10,739,352 Long-term debt 79,387 81,742 83,967 87,767 81,714 Total shareholders' equity 1,613,239 1,600,721 1,574,588 1,537,897 1,501,928 Nonperforming Assets: Non-accrual loans and leases $58,052 $54,612 $64,533 $77,531 $92,173 Loans and leases 90+ days past due, still accruing 2,763 1,925 2,406 1,949 1,226 Restructured loans and leases, still accruing 10,920 12,398 6,712 13,776 27,007 Non-performing loans (NPLs) 71,735 68,935 73,651 93,256 120,406 ------ ------ ------ ------ ------- Other real estate owned 33,984 42,691 55,253 63,595 69,338 ------ ------ ------ ------ ------ Non-performing assets (NPAs) $105,719 $111,626 $128,904 $156,851 $189,744 Financial Ratios and Other Data: Return on average assets 0.87% 0.88% 0.96% 0.88% 0.85% Return on average shareholders' equity 7.05% 7.13% 7.86% 7.50% 7.32% Return on tangible equity 8.81% 8.83% 9.74% 9.28% 9.16% Pre-tax pre-provision return on average assets 1.21% 1.26% 1.39% 1.28% 1.22% Non-interest income to average assets 1.92% 2.12% 2.17% 2.06% 1.99% Non-interest expense to average assets 3.93% 4.08% 3.97% 3.93% 3.91% Net interest margin-fully taxable equivalent 3.60% 3.62% 3.59% 3.54% 3.52% Net interest rate spread 3.49% 3.50% 3.48% 3.43% 3.39% Efficiency ratio (tax equivalent) 75.25% 75.19% 72.76% 74.16% 75.00% Loan/deposit ratio 88.52% 88.87% 87.27% 83.87% 83.15% Price to earnings mult (avg) 18.45 16.64 21.00 23.33 25.68 Market value to book value 134.91% 120.13% 148.53% 154.13% 160.04% Market value to book value (avg) 130.16% 129.54% 143.72% 150.43% 143.60% Market value to tangible book value 167.95% 149.58% 185.73% 192.80% 201.69% Market value to tangible book value (avg) 162.04% 161.30% 179.75% 188.17% 180.98% Headcount FTE 3,948 3,938 3,981 3,981 4,005 Credit Quality Ratios: Net charge-offs to average loans and leases (annualized) 0.06% 0.13% 0.11% 0.16% 0.03% Provision for credit losses to average loans and leases (annualized) 0.00% 0.00% 0.00% 0.00% 0.00% Allowance for credit losses to net loans and leases 1.47% 1.51% 1.58% 1.65% 1.71% Allowance for credit losses to non-performing loans and leases 198.57% 208.82% 199.77% 160.53% 127.27% Allowance for credit losses to non-performing assets 134.74% 128.96% 114.14% 95.44% 80.76% Non-performing loans and leases to net loans and leases 0.74% 0.72% 0.79% 1.03% 1.34% Non-performing assets to net loans and leases 1.09% 1.17% 1.38% 1.73% 2.12% Equity Ratios: Total shareholders' equity to total assets 12.05% 12.32% 12.24% 11.83% 11.61% Tangible shareholders' equity to tangible assets 9.92% 10.14% 10.03% 9.69% 9.44% Capital Adequacy: Tier 1 capital 13.26% 13.18% 13.09% 13.18% 12.99% Total capital 14.52% 14.43% 14.35% 14.44% 14.25% Tier 1 leverage capital 10.55% 10.47% 10.33% 10.04% 9.93% Estimated for current quarter Common Share Data: Basic earnings per share $0.30 $0.30 $0.32 $0.30 $0.29 Diluted earnings per share 0.30 0.30 0.32 0.30 0.29 Cash dividends per share 0.08 0.08 0.05 0.05 0.05 Book value per share 16.69 16.77 16.54 16.19 15.89 Tangible book value per share 13.40 13.46 13.23 12.95 12.60 Market value per share (last) 22.51 20.14 24.57 24.96 25.42 Market value per share (high) 23.28 25.43 25.55 26.24 25.54 Market value per share (low) 19.22 20.11 22.16 22.46 19.64 Market value per share (avg) 21.72 21.72 23.78 24.36 22.81 Dividend payout ratio 25.17% 25.03% 15.56% 16.80% 17.19% Total shares outstanding 96,254,903 96,065,021 96,046,057 96,004,679 95,231,691 Average shares outstanding -basic 96,173,000 96,052,260 96,034,475 95,629,890 95,217,203 Average shares outstanding -diluted 96,506,827 96,373,950 96,373,121 95,952,611 95,644,383 Yield/Rate: (Taxable equivalent basis) Loans, loans held for sale, and leases net of unearned income 4.30% 4.36% 4.38% 4.48% 4.52% Available-for-sale securities: Taxable 1.43% 1.42% 1.45% 1.50% 1.51% Tax-exempt 5.30% 5.37% 5.44% 5.58% 5.52% Short-term investments 0.24% 0.22% 0.24% 0.25% 0.25% Total interest earning assets and revenue 3.85% 3.89% 3.88% 3.85% 3.86% Deposits: 0.25% 0.28% 0.28% 0.31% 0.34% Demand -interest bearing 0.18% 0.17% 0.17% 0.17% 0.18% Savings 0.12% 0.12% 0.12% 0.13% 0.13% Other time 0.87% 0.96% 0.97% 1.06% 1.13% Short-term borrowings 0.11% 0.10% 0.09% 0.07% 0.07% Total int bearing dep & s/ t borrowings 0.33% 0.36% 0.37% 0.39% 0.43% Junior subordinated debt 2.82% 2.81% 2.81% 2.86% 2.96% Long-term debt 2.86% 2.85% 2.84% 2.91% 2.94% Total interest bearing liabilities and expense 0.36% 0.39% 0.40% 0.42% 0.46% Interest bearing liabilities to interest earning assets 70.57% 71.07% 71.98% 73.51% 72.91% Net interest tax equivalent adjustment $2,736 $2,810 $2,860 $2,823 $2,893
BancorpSouth, Inc. Consolidated Balance Sheets (Unaudited) Dec-14 Sep-14 Jun-14 Mar-14 Dec-13 ------ ------ ------ ------ ------ (Dollars in thousands) Assets ------ Cash and due from banks $204,231 $169,226 $201,196 $199,214 $208,961 Interest bearing deposits with other banks 153,019 70,408 44,949 390,896 319,462 Available-for-sale securities, at fair value 2,156,927 2,211,462 2,332,192 2,426,758 2,466,989 Loans and leases 9,749,540 9,546,250 9,347,429 9,103,850 8,993,888 Less: Unearned income 36,604 35,708 35,768 35,474 35,873 Allowance for credit losses 142,443 143,950 147,132 149,704 153,236 Net loans and leases 9,570,493 9,366,592 9,164,529 8,918,672 8,804,779 Loans held for sale 141,015 137,005 105,643 62,867 69,593 Premises and equipment, net 304,943 307,497 310,515 314,367 315,260 Accrued interest receivable 41,985 42,311 40,697 42,666 42,150 Goodwill 291,498 291,498 291,498 286,800 286,800 Other identifiable intangibles 24,508 25,619 26,745 25,021 26,079 Bank owned life insurance 247,076 243,827 241,962 240,077 239,434 Other real estate owned 33,984 42,691 55,253 63,595 69,338 Other assets 156,690 163,421 170,708 172,622 180,888 Total Assets $13,326,369 $13,071,557 $12,985,887 $13,143,555 $13,029,733 =========== =========== =========== =========== =========== Liabilities ----------- Deposits: Demand: Noninterest bearing $2,778,686 $2,811,156 $2,718,242 $2,725,042 $2,644,592 Interest bearing 4,868,054 4,498,275 4,511,760 4,583,481 4,582,450 Savings 1,331,963 1,311,874 1,299,203 1,297,344 1,234,130 Other time 1,993,636 2,080,232 2,141,209 2,205,923 2,312,664 Total deposits 10,972,339 10,701,537 10,670,414 10,811,790 10,773,836 Federal funds purchased and securities sold under agreement to repurchase 388,166 431,428 394,446 456,303 421,028 Short-term Federal Home Loan Bank borrowings and other short-term borrowing 3,500 2,000 2,000 - - Accrued interest payable 3,400 3,894 3,926 4,050 4,836 Junior subordinated debt securities 23,198 23,198 23,198 23,198 31,446 Long-term debt 78,148 81,742 83,835 85,835 81,714 Other liabilities 251,559 217,215 219,218 207,703 203,743 Total Liabilities 11,720,310 11,461,014 11,397,037 11,588,879 11,516,603 Shareholders' Equity -------------------- Common stock 240,637 240,165 240,118 240,012 238,079 Capital surplus 324,271 322,488 321,952 320,969 312,900 Accumulated other comprehensive loss (43,686) (15,513) (15,040) (22,060) (29,959) Retained earnings 1,084,837 1,063,403 1,041,820 1,015,755 992,110 Total Shareholders' Equity 1,606,059 1,610,543 1,588,850 1,554,676 1,513,130 Total Liabilities & Shareholders' Equity $13,326,369 $13,071,557 $12,985,887 $13,143,555 $13,029,733 =========== =========== =========== =========== ===========
BancorpSouth, Inc. Consolidated Average Balance Sheets (Unaudited) Dec-14 Sep-14 Jun-14 Mar-14 Dec-13 ------ ------ ------ ------ ------ (Dollars in thousands) Assets ------ Cash and due from banks $166,941 $155,876 $157,813 $168,056 $163,948 Interest bearing deposits with other banks 165,713 120,707 145,530 449,207 471,695 Available-for-sale securities, at fair value 2,180,000 2,272,114 2,394,045 2,452,178 2,511,888 Loans and leases 9,615,125 9,430,043 9,269,469 9,058,081 8,864,983 Less: Unearned income 36,066 36,334 36,726 35,926 34,066 Allowance for credit losses 143,842 146,592 149,676 153,615 153,443 Net loans and leases 9,435,217 9,247,117 9,083,067 8,868,540 8,677,474 Loans held for sale 113,493 105,964 53,676 35,297 54,572 Premises and equipment, net 306,630 309,373 313,012 315,804 315,174 Accrued interest receivable 39,034 38,758 38,291 39,336 39,665 Goodwill 291,498 291,498 293,082 286,800 279,091 Other identifiable intangibles 24,910 26,031 25,271 25,420 18,658 Bank owned life insurance 245,584 242,718 240,736 239,969 237,657 Other real estate owned 39,209 49,123 60,822 69,086 77,211 Other assets 122,901 127,824 128,534 137,435 108,094 Total Assets $13,131,130 $12,987,103 $12,933,879 $13,087,128 $12,955,127 =========== =========== =========== =========== =========== Liabilities ----------- Deposits: Demand: Noninterest bearing $2,837,919 $2,766,626 $2,683,939 $2,647,376 $2,667,667 Interest bearing 4,617,998 4,480,008 4,492,495 4,657,785 4,484,269 Savings 1,321,000 1,308,184 1,298,829 1,260,838 1,224,588 Other time 2,025,277 2,108,023 2,174,814 2,259,309 2,362,828 Total deposits 10,802,194 10,662,841 10,650,077 10,825,308 10,739,352 Federal funds purchased and securities sold under agreement to repurchase 426,842 444,017 435,505 458,436 469,245 Short-term Federal Home Loan Bank borrowings and other short-term borrowing 2,261 6,489 3,621 - - Accrued interest payable 3,630 3,940 3,926 4,400 5,051 Junior subordinated debt securities 23,198 23,198 23,198 23,748 31,446 Long-term debt 79,387 81,742 83,967 87,767 81,714 Other liabilities 180,379 164,155 158,997 149,572 126,391 Total Liabilities 11,517,891 11,386,382 11,359,291 11,549,231 11,453,199 Shareholders' Equity -------------------- Common stock 240,436 240,123 240,071 238,853 238,038 Capital surplus 323,372 322,219 321,628 314,117 312,835 Accumulated other comprehensive loss (22,747) (14,827) (16,663) (23,644) (32,267) Retained earnings 1,072,178 1,053,206 1,029,552 1,008,571 983,322 Total Shareholders' Equity 1,613,239 1,600,721 1,574,588 1,537,897 1,501,928 Total Liabilities & Shareholders' Equity $13,131,130 $12,987,103 $12,933,879 $13,087,128 $12,955,127 =========== =========== =========== =========== ===========
BancorpSouth, Inc. Consolidated Condensed Statements of Income (Dollars in thousands, except per share data) (Unaudited) Quarter Ended Year Ended ------------- ---------- Dec-14 Sep-14 Jun-14 Mar-14 Dec-13 Dec-14 Dec-13 ------ ------ ------ ------ ------ ------ ------ INTEREST REVENUE: Loans and leases $103,172 $102,681 $99,962 $98,744 $99,989 $404,559 $396,441 Deposits with other banks 101 68 87 276 299 532 1,694 Available-for-sale securities: Taxable 6,429 6,646 7,133 7,547 7,963 27,755 33,286 Tax-exempt 3,471 3,607 3,669 3,715 3,810 14,462 15,547 Loans held for sale 1,064 920 648 317 449 2,949 2,539 ----- --- --- --- --- ----- ----- Total interest revenue 114,237 113,922 111,499 110,599 112,510 450,257 449,507 ------- ------- ------- ------- ------- ------- ------- INTEREST EXPENSE: Interest bearing demand 2,070 1,956 1,905 1,920 2,036 7,851 9,645 Savings 411 410 402 391 387 1,614 1,705 Other time 4,453 5,083 5,249 5,890 6,746 20,675 29,729 Federal funds purchased and securities sold under agreement to repurchase 89 84 80 78 84 331 297 Long-term debt 603 612 619 629 605 2,463 1,803 Junior subordinated debt 165 164 162 168 235 659 7,376 Other 1 - 1 - - 2 3 --- --- --- --- --- --- --- Total interest expense 7,792 8,309 8,418 9,076 10,093 33,595 50,558 ----- ----- ----- ----- ------ ------ ------ Net interest revenue 106,445 105,613 103,081 101,523 102,417 416,662 398,949 Provision for credit losses - - - - - - 7,500 --- --- --- --- --- --- ----- Net interest revenue, after provision for credit losses 106,445 105,613 103,081 101,523 102,417 416,662 391,449 ------- ------- ------- ------- ------- ------- ------- NONINTEREST REVENUE: Mortgage lending 3,250 6,938 9,089 3,394 9,605 22,671 44,977 Credit card, debit card and merchant fees 9,921 8,972 8,567 7,843 8,324 35,303 33,005 Deposit service charges 12,538 13,111 12,437 12,536 13,570 50,622 52,905 Security gains (losses), net 18 18 5 (4) 29 37 46 Insurance commissions 25,376 29,246 28,621 31,599 21,397 114,842 97,700 Wealth Management 5,826 5,961 5,828 5,916 5,320 23,531 22,967 Other 6,584 5,032 5,291 5,233 6,880 22,140 23,466 ----- ----- ----- ----- ----- ------ ------ Total noninterest revenue 63,513 69,278 69,838 66,517 65,125 269,146 275,066 ------ ------ ------ ------ ------ ------- ------- NONINTEREST EXPENSE: Salaries and employee benefits 76,751 77,453 74,741 78,883 75,466 307,828 306,696 Occupancy, net of rental income 10,500 10,313 10,245 10,287 9,935 41,345 41,109 Equipment 3,996 4,205 4,169 4,499 4,298 16,869 18,386 Deposit insurance assessments 2,430 2,125 2,035 1,600 2,687 8,190 11,755 Voluntary early retirement expense - - - - - - 10,850 Write-off and amortization of bond issue cost 12 12 12 12 12 48 2,995 Other 36,357 39,591 36,752 31,426 35,432 144,126 143,058 ------ ------ ------ ------ ------ ------- Total noninterest expenses 130,046 133,699 127,954 126,707 127,830 518,406 534,849 ------- ------- ------- ------- ------- ------- ------- Income before income taxes 39,912 41,192 44,965 41,333 39,712 167,402 131,666 Income tax expense 11,252 12,414 14,097 12,889 12,014 50,652 37,551 ------ ------ ------ ------ ------ ------ Net income $28,660 $28,778 $30,868 $28,444 $27,698 $116,750 $94,115 ======= ======= ======= ======= ======= ======== ======= Net income per share: Basic $0.30 $0.30 $0.32 $0.30 $0.29 $1.22 $0.99 ===== ===== ===== ===== ===== ===== ===== Diluted $0.30 $0.30 $0.32 $0.30 $0.29 $1.21 $0.99 ===== ===== ===== ===== ===== ===== =====
BancorpSouth, Inc. Selected Loan Data (Dollars in thousands) (Unaudited) Quarter Ended ------------- Dec-14 Sep-14 Jun-14 Mar-14 Dec-13 ------ ------ ------ ------ ------ LOAN AND LEASE PORTFOLIO: Commercial and industrial $1,746,486 $1,714,012 $1,699,803 $1,581,251 $1,529,249 Real estate Consumer mortgages 2,257,726 2,191,265 2,071,503 2,047,001 1,976,073 Home equity 531,374 518,263 506,988 498,283 494,339 Agricultural 239,616 242,023 238,003 229,602 234,576 Commercial and industrial-owner occupied 1,522,536 1,508,679 1,505,679 1,488,380 1,473,320 Construction, acquisition and development 853,623 819,636 772,162 748,027 741,458 Commercial real estate 1,961,977 1,916,577 1,901,759 1,847,983 1,846,039 Credit cards 113,426 109,464 109,186 105,988 111,328 All other 486,172 490,623 506,578 521,861 551,633 ------- ------- ------- ------- ------- Total loans $9,712,936 $9,510,542 $9,311,661 $9,068,376 $8,958,015 ---------- ---------- ---------- ---------- ---------- ALLOWANCE FOR CREDIT LOSSES: Balance, beginning of period $143,950 $147,132 $149,704 $153,236 $153,974 Loans and leases charged off: Commercial and industrial (1,179) (306) (860) (201) (837) Real estate Consumer mortgages (900) (1,510) (1,682) (1,945) (1,435) Home equity (93) (510) (438) (318) (287) Agricultural (4) (47) (18) (696) (238) Commercial and industrial-owner occupied (220) (1,229) (936) (1,206) (1,041) Construction, acquisition and development (566) (1,458) (41) (1,666) (1,784) Commercial real estate (463) (70) (361) (901) (1,039) Credit cards (580) (612) (608) (559) (559) All other (847) (743) (671) (583) (1,108) Total loans charged off (4,852) (6,485) (5,615) (8,075) (8,328) ------ ------ ------ ------ ------ Recoveries: Commercial and industrial 298 565 359 1,076 1,361 Real estate Consumer mortgages 821 952 956 538 1,735 Home equity 102 157 182 184 97 Agricultural 16 45 26 9 34 Commercial and industrial-owner occupied 216 460 78 358 734 Construction, acquisition and development 897 392 808 1,637 2,483 Commercial real estate 623 286 226 323 784 Credit cards 160 116 135 131 133 All other 212 330 273 287 229 Total recoveries 3,345 3,303 3,043 4,543 7,590 ----- ----- ----- ----- ----- Net charge-offs (1,507) (3,182) (2,572) (3,532) (738) Provision charged to operating expense - - - - - Balance, end of period $142,443 $143,950 $147,132 $149,704 $153,236 -------- -------- -------- -------- -------- Average loans for period $9,579,059 $9,393,709 $9,232,743 $9,022,155 $8,830,917 ========== ========== ========== ========== ========== Ratio: Net charge-offs to average loans (annualized) 0.06% 0.13% 0.11% 0.16% 0.03% ==== ==== ==== ==== ====
BancorpSouth, Inc. Selected Loan Data (Dollars in thousands) (Unaudited) Quarter Ended ------------- Dec-14 Sep-14 Jun-14 Mar-14 Dec-13 ------ ------ ------ ------ ------ NON-PERFORMING ASSETS NON-PERFORMING LOANS AND LEASES: Nonaccrual Loans and Leases Commercial and industrial $3,934 $2,786 $2,917 $3,023 $3,079 Real estate Consumer mortgages 23,668 23,408 24,355 24,353 25,645 Home equity 2,253 2,073 2,116 2,740 3,695 Agricultural 291 638 595 651 1,260 Commercial and industrial-owner occupied 11,190 7,495 11,094 14,122 18,568 Construction, acquisition and development 4,162 6,070 9,202 9,968 17,567 Commercial real estate 11,915 11,102 13,406 21,496 20,972 Credit cards 133 168 132 168 119 All other 506 872 716 1,010 1,268 --- --- --- ----- ----- Total nonaccrual loans and leases $58,052 $54,612 $64,533 $77,531 $92,173 ------- ------- ------- ------- ------- Loans and Leases 90+ Days Past Due, Still Accruing: Commercial and industrial $41 $60 $302 $287 $27 Real estate Consumer mortgages 1,828 1,590 1,607 1,307 888 Home equity - 20 116 12 - Agricultural - - 100 - - Commercial and industrial-owner occupied 39 - - - - Construction, acquisition and development 387 - - - - Commercial real estate 137 - - - 311 Credit cards 327 255 281 297 - All other 4 - - 46 - Total loans and leases 90+ days past due, still accruing 2,763 1,925 2,406 1,949 1,226 ----- ----- ----- ----- ----- Restructured Loans and Leases, Still Accruing 10,920 12,398 6,712 13,776 27,007 Total non- performing loans and leases 71,735 68,935 73,651 93,256 120,406 ------ ------ ------ ------ ------- OTHER REAL ESTATE OWNED: 33,984 42,691 55,253 63,595 69,338 ------ ------ ------ ------ ------ Total Non- performing Assets $105,719 $111,626 $128,904 $156,851 $189,744 ======== ======== ======== ======== ======== Additions to Nonaccrual Loans and Leases During the Quarter $21,952 $16,707 $13,748 $22,479 $18,556 ======= ======= ======= ======= ======= Loans and Leases 30-89 Days Past Due, Still Accruing: Commercial and industrial $2,319 $3,753 $3,605 $2,616 $2,817 Real estate Consumer mortgages 11,412 13,013 11,448 12,236 14,150 Home equity 2,047 1,315 960 1,587 1,828 Agricultural 366 190 1,122 302 495 Commercial and industrial-owner occupied 912 2,364 6,340 3,248 4,081 Construction, acquisition and development 4,811 1,036 1,616 2,848 1,993 Commercial real estate 1,510 926 1,658 3,953 5,574 Credit cards 739 602 556 592 655 All other 1,698 1,196 1,490 963 2,189 ----- ----- ----- --- ----- Total Loans and Leases 30-89 days past due, still accruing $25,814 $24,395 $28,795 $28,345 $33,782 ======= ======= ======= ======= ======= Credit Quality Ratios: Provision for credit losses to average loans and leases (annualized) 0.00% 0.00% 0.00% 0.00% 0.00% Allowance for credit losses to net loans and leases 1.47% 1.51% 1.58% 1.65% 1.71% Allowance for credit losses to non- performing loans and leases 198.57% 208.82% 199.77% 160.53% 127.27% Allowance for credit losses to non- performing assets 134.74% 128.96% 114.14% 95.44% 80.76% Non-performing loans and leases to net loans and leases 0.74% 0.72% 0.79% 1.03% 1.34% Non-performing assets to net loans and leases 1.09% 1.17% 1.38% 1.73% 2.12%
BancorpSouth, Inc. Selected Loan Data (Dollars in thousands) (Unaudited) Quarter Ended ------------- Dec-14 Sep-14 Jun-14 Mar-14 Dec-13 ------ ------ ------ ------ ------ REAL ESTATE CONSTRUCTION, ACQUISITION AND DEVELOPMENT ("CAD") PORTFOLIO: Outstanding Balance Multi-family construction $32,254 $24,076 $15,874 $11,339 $7,702 One-to-four family construction 227,431 220,066 226,252 221,790 224,286 Recreation and all other loans 38,913 33,015 35,364 36,897 36,868 Commercial construction 254,998 245,734 192,605 177,264 150,847 Commercial acquisition and development 123,648 121,439 122,380 122,051 128,157 Residential acquisition and development 176,379 175,306 179,687 178,686 193,598 ------- ------- ------- ------- ------- Total outstanding balance $853,623 $819,636 $772,162 $748,027 $741,458 ======== ======== ======== ======== ======== Nonaccrual CAD Loans Multi-family construction $ - $ - $ - $ - $ - One-to-four family construction 965 1,239 2,603 2,824 2,937 Recreation and all other loans 805 1,060 981 919 728 Commercial construction - - - - 865 Commercial acquisition and development 979 2,033 1,835 2,224 6,890 Residential acquisition and development 1,413 3,086 3,783 4,001 6,147 ----- ----- ----- ----- ----- Total nonaccrual CAD loans $4,162 $7,418 $9,202 $9,968 $17,567 ====== ====== ====== ====== ======= 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 387 - - - - Residential acquisition and development - - - - - Total CAD loans 90+ days past due, still accruing $387 $ - $ - $ - $ - ==== ================== ================== =============== ================== Restructured CAD Loans, Still Accruing Multi-family construction $ - $ - $ - $ - $ - One-to-four family construction 27 - - - 1,274 Recreation and all other loans 40 10 11 13 13 Commercial construction - - - - 346 Commercial acquisition and development - 391 395 402 1,990 Residential acquisition and development 646 947 700 1,192 3,111 --- --- --- ----- ----- Total restructured CAD loans, still accruing $713 $1,348 $1,106 $1,607 $6,734 ==== ====== ====== ====== ====== Total Non-performing CAD loans $5,262 $8,766 $10,308 $11,575 $24,301 ====== ====== ======= ======= ======= CAD NPL as a % of Outstanding CAD Balance Multi-family construction - - - - - One-to-four family construction 0.4% 0.6% 1.2% 1.3% 1.9% Recreation and all other loans 2.2% 3.2% 2.8% 2.5% 2.0% Commercial construction 0.0% 0.0% 0.0% 0.0% 0.8% Commercial acquisition and development 1.1% 2.0% 1.8% 2.2% 6.9% Residential acquisition and development 1.2% 2.3% 2.5% 2.9% 4.8% Total CAD NPL as a % of outstanding CAD balance 0.6% 1.1% 1.3% 1.5% 3.3%
BancorpSouth, Inc. Selected Loan Data (Dollars in thousands) (Unaudited) 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 ========== ==== ======== ====== ================== ======= ========== September 30, 2014 ------------------ Special Pass Mention Substandard Doubtful Loss Impaired Total ---- ------- ----------- -------- ---- -------- ----- LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE: Commercial and industrial $1,685,887 $994 $25,536 $341 $ - $1,254 $1,714,012 Real estate Consumer mortgages 2,098,275 - 88,742 - - 4,248 2,191,265 Home equity 507,884 - 9,752 - - 627 518,263 Agricultural 227,546 500 13,711 - - 266 242,023 Commercial and industrial-owner occupied 1,443,345 3,685 57,572 142 - 3,935 1,508,679 Construction, acquisition and development 776,197 255 39,310 342 - 3,532 819,636 Commercial real estate 1,850,212 - 57,393 189 - 8,783 1,916,577 Credit cards 109,464 - - - - - 109,464 All other 471,065 - 19,382 - - 176 490,623 Total loans $9,169,875 $5,434 $311,398 $1,014 $ - $22,821 $9,510,542 ========== ====== ======== ====== ================== ======= ==========
BancorpSouth, Inc. Geographical Information (Dollars in thousands) (Unaudited) December 31, 2014 ----------------- Alabama Greater Corporate and Florida Memphis Texas and Banking Panhandle Arkansas* Mississippi* Missouri Area Tennessee* Louisiana and Other Total --------- -------- ----------- -------- ---- --------- --------- --------- ----- LOAN AND LEASE PORTFOLIO: Commercial and industrial $75,919 $172,894 $303,524 $29,734 $24,457 $89,683 $321,143 $729,132 $1,746,486 Real estate Consumer mortgages 183,605 283,462 710,307 69,501 115,178 175,401 556,457 163,815 2,257,726 Home equity 73,380 39,546 174,587 21,661 68,777 88,505 62,872 2,046 531,374 Agricultural 6,814 73,413 56,016 2,747 12,678 11,115 73,076 3,757 239,616 Commercial and industrial-owner occupied 172,813 172,026 454,432 61,393 90,734 87,524 337,457 146,157 1,522,536 Construction, acquisition and development 129,955 83,645 227,979 21,800 73,944 98,067 180,676 37,557 853,623 Commercial real estate 285,105 327,703 294,254 200,352 98,403 126,197 436,519 193,444 1,961,977 Credit cards - - - - - - - 113,426 113,426 All other 28,728 38,680 131,704 2,726 35,142 33,101 67,260 148,831 486,172 Total loans $956,319 $1,191,369 $2,352,803 $409,914 $519,313 $709,593 $2,035,460 $1,538,165 $9,712,936 ======== ========== ========== ======== ======== ======== ========== ========== ========== CAD PORTFOLIO: Multi-family construction $19,600 $3,488 $5 $ - $ - $6,190 $2,971 $ - $32,254 One-to-four family construction 37,174 17,057 56,157 2,619 12,219 57,505 44,143 557 227,431 Recreation and all other loans 1,180 12,322 11,163 570 3,737 1,652 8,289 - 38,913 Commercial construction 37,806 21,853 75,419 7,759 24,525 9,238 52,409 25,989 254,998 Commercial acquisition and development 9,601 15,681 36,917 6,093 13,686 8,467 30,478 2,725 123,648 Residential acquisition and development 24,594 13,244 48,318 4,759 19,777 15,015 42,386 8,286 176,379 ------ ------ ------ ----- ------ ------ ------ ----- Total CAD loans $129,955 $83,645 $227,979 $21,800 $73,944 $98,067 $180,676 $37,557 $853,623 ======== ======= ======== ======= ======= ======= ======== ======= ======== NON-PERFORMING LOANS AND LEASES: Commercial and industrial $1,250 $340 $1,359 $ - $147 $209 $773 $333 $4,411 Real estate Consumer mortgages 1,361 2,812 6,728 805 2,861 2,078 2,853 8,984 28,482 Home equity 631 21 373 - 445 277 521 2 2,270 Agricultural 100 - 121 - - 64 14 - 299 Commercial and industrial-owner occupied 1,029 3,608 7,127 603 648 769 352 1,615 15,751 Construction, acquisition and development 686 55 2,070 139 1,374 348 587 3 5,262 Commercial real estate 30 221 1,895 - 3,186 3,165 3,879 847 13,223 Credit cards - - - - - - - 1,420 1,420 All other - 22 228 - - 240 126 1 617 --- --- --- --- --- --- --- --- Total loans $5,087 $7,079 $19,901 $1,547 $8,661 $7,150 $9,105 $13,205 $71,735 ====== ====== ======= ====== ====== ====== ====== ======= ======= NON-PERFORMING LOANS AND LEASES AS A PERCENTAGE OF OUTSTANDING: Commercial and industrial 1.65% 0.20% 0.45% 0.00% 0.60% 0.23% 0.24% 0.05% 0.25% Real estate Consumer mortgages 0.74% 0.99% 0.95% 1.16% 2.48% 1.18% 0.51% 5.48% 1.26% Home equity 0.86% 0.05% 0.21% 0.00% 0.65% 0.31% 0.83% 0.10% 0.43% Agricultural 1.47% 0.00% 0.22% 0.00% 0.00% 0.58% 0.02% 0.00% 0.12% Commercial and industrial-owner occupied 0.60% 2.10% 1.57% 0.98% 0.71% 0.88% 0.10% 1.10% 1.03% Construction, acquisition and development 0.53% 0.07% 0.91% 0.64% 1.86% 0.35% 0.32% 0.01% 0.62% Commercial real estate 0.01% 0.07% 0.64% 0.00% 3.24% 2.51% 0.89% 0.44% 0.67% Credit cards - - - - - - - 1.25% 1.25% All other 0.00% 0.06% 0.17% 0.00% 0.00% 0.73% 0.19% 0.00% 0.13% Total loans 0.53% 0.59% 0.85% 0.38% 1.67% 1.01% 0.45% 0.86% 0.74% ==== ==== ==== ==== ==== ==== ==== ==== ==== *Excludes the Greater Memphis Area.
BancorpSouth, Inc. Selected Additional Information (Dollars in thousands) (Unaudited) December 31, 2014 ----------------- Texas and Alabama Greater and Florida Memphis Panhandle Arkansas* Mississippi* Missouri Area Tennessee* Louisiana Other Total --------- -------- ----------- -------- ---- --------- --------- ----- ----- OTHER REAL ESTATE OWNED: Commercial and industrial $84 $ - $ - $ - $ - $ - $ - $ - $84 Real estate Consumer mortgages 309 97 1,181 - - 198 509 - 2,294 Home equity 24 - 188 - - - - - 212 Agricultural - - 25 - - - - - 25 Commercial and industrial-owner occupied - - 1,162 - 223 - 60 - 1,445 Construction, acquisition and development 7,302 84 9,182 - 9,178 1,798 196 - 27,740 Commercial real estate 1,000 256 767 - - - 63 - 2,086 All other - - 98 - - - - - 98 Total loans $8,719 $437 $12,603 $ - $9,401 $1,996 $828 $ - $33,984 ====== ==== ======= ============== ====== ====== ==== ============= ======= Quarter Ended ------------- Dec-14 Sep-14 Jun-14 Mar-14 Dec-13 ------ ------ ------ ------ ------ OTHER REAL ESTATE OWNED: Balance, beginning of period $42,691 $55,253 $63,595 $69,338 $76,853 Additions to foreclosed properties New foreclosed property 2,257 3,476 4,144 4,855 7,868 Reductions in foreclosed properties Sales (8,548) (14,429) (10,269) (8,767) (14,272) Writedowns (2,416) (1,609) (2,217) (1,831) (1,111) Balance, end of period $33,984 $42,691 $55,253 $63,595 $69,338 ======= ======= ======= ======= ======= FORECLOSED PROPERTY EXPENSE Loss on sale of other real estate owned $1,643 $3,289 $1,073 $466 $949 Writedown of other real estate owned 2,416 1,609 2,217 1,831 1,111 Other foreclosed property expense 534 823 912 258 771 Total foreclosed property expense $4,593 $5,721 $4,202 $2,555 $2,831 ====== ====== ====== ====== ====== *Excludes the Greater Memphis Area.
BancorpSouth, Inc. Noninterest Revenue and Expense (Dollars in thousands) (Unaudited) Quarter Ended ------------- Dec-14 Sep-14 Jun-14 Mar-14 Dec-13 ------ ------ ------ ------ ------ NONINTEREST REVENUE: Mortgage lending $3,250 $6,938 $9,089 $3,394 $9,605 Credit card, debit card and merchant fees 9,921 8,972 8,567 7,843 8,324 Deposit service charges 12,538 13,111 12,437 12,536 13,570 Securities gains, net 18 18 5 (4) 29 Insurance commissions 25,376 29,246 28,621 31,599 21,397 Trust income 3,791 3,537 3,624 3,568 3,717 Annuity fees 540 461 695 772 566 Brokerage commissions and fees 1,495 1,963 1,509 1,576 1,037 Bank-owned life insurance 3,249 1,865 1,885 1,849 2,466 Other miscellaneous income 3,335 3,167 3,406 3,384 4,414 Total noninterest revenue $63,513 $69,278 $69,838 $66,517 $65,125 ======= ======= ======= ======= ======= NONINTEREST EXPENSE: Salaries and employee benefits $76,751 $77,453 $74,741 $78,883 $75,466 Occupancy, net of rental income 10,500 10,313 10,245 10,287 9,935 Equipment 3,996 4,205 4,169 4,499 4,298 Deposit insurance assessments 2,430 2,125 2,035 1,600 2,687 Amortization of bond issue cost 12 12 12 12 12 Advertising 1,233 1,192 1,331 632 1,436 Foreclosed property expense 4,593 5,721 4,202 2,555 2,831 Telecommunications 1,960 2,254 2,258 2,248 1,971 Public relations 770 950 857 822 972 Data processing 2,806 2,734 2,863 2,741 2,939 Computer software 2,763 2,488 2,851 2,423 2,197 Amortization of intangibles 1,111 1,126 1,148 1,058 819 Legal 2,322 2,620 3,002 1,878 2,537 Merger expense 4 188 1,009 560 - Postage and shipping 1,239 1,103 1,116 1,287 1,133 Other miscellaneous expense 17,556 19,215 16,115 15,222 18,597 Total noninterest expense $130,046 $133,699 $127,954 $126,707 $127,830 ======== ======== ======== ======== ======== INSURANCE COMMISSIONS: Property and casualty commissions $19,007 $22,746 $21,576 $19,987 $15,588 Life and health commissions 5,521 5,128 5,549 5,010 4,525 Risk management income 621 708 617 705 648 Other 227 664 879 5,897 636 Total insurance commissions $25,376 $29,246 $28,621 $31,599 $21,397 ======= ======= ======= ======= =======
BancorpSouth, Inc. Selected Additional Information (Dollars in thousands) (Unaudited) Quarter Ended ------------- Dec-14 Sep-14 Jun-14 Mar-14 Dec-13 ------ ------ ------ ------ ------ MORTGAGE SERVICING RIGHTS: Fair value, beginning of period $53,759 $52,272 $53,436 $54,662 $51,025 Additions to mortgage servicing rights: Originations of servicing assets 2,453 2,400 2,565 1,460 1,984 Changes in fair value: Due to payoffs/paydowns (1,480) (1,559) (1,616) (1,138) (1,240) Due to change in valuation inputs or assumptions used in the valuation model (3,434) 648 (2,111) (1,547) 2,894 Other changes in fair value (2) (2) (2) (1) (1) Fair value, end of period $51,296 $53,759 $52,272 $53,436 $54,662 ======= ======= ======= ======= ======= MORTGAGE LENDING REVENUE: Origination $3,949 $3,736 $8,758 $1,964 $3,590 Servicing 4,215 4,113 4,058 4,115 4,361 MSR payoffs/paydowns (1,480) (1,559) (1,616) (1,138) (1,240) MSR valuation adjustment (3,434) 648 (2,111) (1,547) 2,894 Total mortgage lending revenue $3,250 $6,938 $9,089 $3,394 $9,605 ====== ====== ====== ====== ====== Mortgage loans serviced $5,686,756 $5,649,897 $5,630,192 $5,568,828 $5,577,325 MSR/mtg loans serviced 0.90% 0.95% 0.93% 0.96% 0.98% AVAILABLE-FOR-SALE SECURITIES, at fair value U.S. Government agencies $1,215,054 $1,238,088 $1,333,368 $1,419,269 $1,458,349 Government agency issued residential mortgage-back securities 209,230 218,748 229,414 241,596 250,234 Government agency issued commercial mortgage-back securities 240,568 237,325 237,321 234,059 230,912 Obligations of states and political subdivisions 483,864 509,304 520,897 523,811 519,405 Other 8,211 7,997 11,192 8,023 8,089 Total available-for-sale securities $2,156,927 $2,211,462 $2,332,192 $2,426,758 $2,466,989 ========== ========== ========== ========== ==========
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 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: Quarter ended ------------- 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 ---------- --------- --------- --------- ---------- Net income $28,660 $28,778 $30,868 $28,444 $27,698 Plus: Provision for credit losses - - - - - Income tax expense 11,252 12,414 14,097 12,889 12,014 ----------- Pre-tax, pre-provision earnings $39,912 $41,192 $44,965 $41,333 $39,712 ======= ======= ======= ======= ======= Net income $28,660 $28,778 $30,868 $28,444 $27,698 Plus: Merger expense, net of tax 2 117 626 347 - One time charge for BSA, net of tax - 1,903 - - - Net operating income $28,662 $30,798 $31,494 $28,791 $27,698 ======= ======= ======= ======= =======
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 ------------- 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 ---------- --------- --------- --------- ---------- Tangible assets Total assets $13,326,369 $13,071,557 $12,985,887 $13,143,555 $13,029,733 Less: Goodwill 291,498 291,498 291,498 286,800 286,800 Other identifiable intangible assets 24,508 25,619 26,745 25,021 26,079 ------------- Total tangible assets $13,010,363 $12,754,440 $12,667,644 $12,831,734 $12,716,854 Tangible shareholders' equity Total shareholders' equity $1,606,059 $1,610,543 $1,588,850 $1,554,676 $1,513,130 Less: Goodwill 291,498 291,498 291,498 286,800 286,800 Other identifiable intangible assets 24,508 25,619 26,745 25,021 26,079 ------------- Total tangible shareholders' equity $1,290,053 $1,293,426 $1,270,607 $1,242,855 $1,200,251 Total average assets $13,131,130 $12,987,103 $12,933,879 $13,087,128 $12,955,127 Total common shares outstanding 96,254,903 96,065,021 96,046,057 96,004,679 95,231,691 Average shares outstanding- diluted 96,506,827 96,373,950 96,373,121 95,952,611 96,644,383 Tangible shareholders' equity to tangible assets* 9.92% 10.14% 10.03% 9.69% 9.44% Return on tangible equity ** 8.81% 8.83% 9.74% 9.28% 9.16% Pre-tax pre-provision return on average assets *** 1.21% 1.26% 1.39% 1.28% 1.22% Tangible book value per share**** $13.40 $13.46 $13.23 $12.95 $12.60 Operating earnings per share***** $0.30 $0.32 $0.33 $0.30 $0.29
* 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.
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SOURCE BancorpSouth, Inc.