BANCORPSOUTH, INC. TUPELO, Miss., July 20, 2015 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and six months ended June 30, 2015.
Highlights for the second quarter of 2015 included:
-- Net income of $39.7 million or $0.41 per diluted share.
-- Net operating income of $39.7 million or $0.41 per diluted share.
-- Generated net loan growth of $280.6 million, or 11.6 percent on an
annualized basis.
-- Elevated recoveries of previously charged-off loans, which resulted in
net recoveries of $6.7 million, contributed to a negative provision for
credit losses of $5.0 million.
-- Mortgage lending revenue totaled $14.1 million, including a positive
mortgage servicing rights ("MSR") valuation adjustment of $4.3 million.
-- Continued progress toward improving cost structure reflected by decline
in efficiency ratio to 69.52 percent.
The Company reported net income of $39.7 million, or $0.41 per diluted share, for the second quarter of 2015 compared with net income of $30.9 million, or $0.32 per diluted share, for the second quarter of 2014 and net income of $32.3 million, or $0.33 per diluted share, for the first quarter of 2015. Additionally, the Company reported net income of $72.0 million, or $0.74 per diluted share, for the first six months of 2015 compared to $59.3 million, or $0.62 per diluted share, for the first six months of 2014.
The Company reported net operating income (excluding merger related and other non-operating expenses) of $39.7 million, or $0.41 per diluted share, for the second quarter of 2015 compared to $31.5 million, or $0.33 per diluted share, for the second quarter of 2014 and $32.3 million, or $0.33 per diluted share, for the first quarter of 2015.
"Our second quarter results reflect our Company's most profitable quarter since 2008," remarked Dan Rollins, BancorpSouth Chairman and Chief Executive Officer. "Progress in core fundamentals across all areas of our Company continues to drive earnings improvement. Our lenders continue to develop relationships and win new business as evidenced by net loan growth of over $280 million, or approximately 12 percent annualized, for the quarter. Our credit quality remains strong as elevated recoveries of previously charged-off loans contributed to a negative provision for credit losses of $5.0 million. Finally, we continue to challenge expenses and improve our cost structure. While we have more work to do on our expense base, we are pleased to report a decline in our quarterly efficiency ratio to 69.52 percent for the quarter."
Net Interest Revenue
Net interest revenue was $107.3 million for the second quarter of 2015, an increase of 4.1 percent from $103.1 million for the second quarter of 2014 and an increase of 1.2 percent from $106.1 million for the first quarter of 2015. The fully taxable equivalent net interest margin was 3.54 percent for the second quarter of 2015 compared to 3.59 percent for the second quarter of 2014 and 3.56 percent for the first quarter of 2015. Yields on loans and leases declined to 4.23 percent for the second quarter of 2015 from 4.38 percent for the second quarter of 2014 and declined from 4.31 percent for the first quarter of 2015, while yields on total interest earning assets were 3.78 percent for the second quarter of 2015 compared with 3.88 percent for the second quarter of 2014 and 3.80 percent the first quarter of 2015. The average cost of deposits was 0.23 percent for the second quarter of 2015 compared to 0.28 percent for the second quarter of 2014 and 0.24 percent for the first quarter of 2015.
Asset, Deposit and Loan Activity
Total assets were $13.6 billion at June 30, 2015 compared with $13.0 billion at June 30, 2014. Loans and leases, net of unearned income, were $10.0 billion at June 30, 2015 compared with $9.3 billion at June 30, 2014.
Total deposits were $11.1 billion at June 30, 2015 compared with $10.7 billion at June 30, 2014. A decrease in time deposits of $207.3 million, or 9.7 percent, at June 30, 2015 compared to June 30, 2014 was more than offset by growth in other lower cost deposits. Noninterest bearing demand deposits increased $193.7 million, or 7.1 percent, over the same period. Additionally, savings deposits increased $108.4 million, or 8.3 percent, while interest bearing demand deposits increased $369.7 million, or 8.2 percent, over the same period. At June 30, 2015, $680.3 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.65 percent.
Provision for Credit Losses and Allowance for Credit Losses
Earnings for the quarter reflect a negative provision for credit losses of $5.0 million, compared to no recorded provision for the second quarter of 2014 and a negative provision of $5.0 million for the first quarter of 2015. Total non-performing assets ("NPAs") were $103.7 million, or 1.04 percent of net loans and leases, at June 30, 2015 compared with $128.9 million, or 1.38 percent of net loans and leases, at June 30, 2014, and $89.4 million, or 0.92 percent of net loans and leases, at March 31, 2015.
Net recoveries for the second quarter of 2015 were $6.7 million, compared with net charge-offs of $2.6 million for the second quarter of 2014 and $0.8 million for the first quarter of 2015. Gross charge-offs were $5.0 million for the second quarter of 2015, compared with $5.6 million for the second quarter of 2014 and $4.8 million for the first quarter of 2015. Gross recoveries of previously charged-off loans were $11.7 million for the second quarter of 2015, compared with $3.0 million for the second quarter of 2014 and $4.0 million for the first quarter of 2015. The increase in recoveries for the current quarter was driven primarily by a single recovery of a previously charged-off loan totaling $6.0 million. Annualized net recoveries were 0.27 percent of average loans and leases for the second quarter of 2015, compared with annualized net charge-offs of 0.11 percent for the second quarter of 2014 and 0.03 percent for the first quarter of 2015.
Non-performing loans ("NPLs") were $79.4 million, or 0.79 percent of net loans and leases, at June 30, 2015, compared with $73.7 million, or 0.79 percent of net loans and leases, at June 30, 2014, and $61.5 million, or 0.63 percent of net loans and leases, at March 31, 2015. The allowance for credit losses was $138.3 million, or 1.38 percent of net loans and leases, at June 30, 2015 compared with $147.1 million, or 1.58 percent of net loans and leases, at June 30, 2014 and $136.7 million, or 1.40 percent of net loans and leases, at March 31, 2015.
NPLs at June 30, 2015 consisted primarily of $67.8 million of nonaccrual loans, compared with $54.4 million of nonaccrual loans at March 31, 2015. The increase in nonaccrual loans during the quarter was driven by three relationships that are not concentrated in any specific geography or loan type. Payments received on nonaccrual loans during the second quarter of 2015 totaled $16.1 million, compared with payments received on such loans of $18.9 million during the first quarter of 2015. NPLs at June 30, 2015 also included $1.6 million of loans 90 days or more past due and still accruing, compared with $1.6 million of such loans at March 31, 2015, and included restructured loans still accruing of $10.1 million at June 30, 2015, compared with $5.4 million of such loans at March 31, 2015. Early stage past due loans, representing loans 30-89 days past due, totaled $23.8 million at June 30, 2015 compared to $29.1 million at March 31, 2015.
Other real estate owned ("OREO") decreased $3.6 million to $24.3 million during the second quarter of 2015 from $27.9 million at March 31, 2015. This net decrease reflected $1.7 million of OREO added through foreclosure, offset by sales of OREO of $4.3 million. Write-downs in the value of existing properties were $1.0 million for the second quarter of 2015 compared to $2.2 million for the first quarter of 2015. Sales of OREO during the second quarter of 2015 resulted in a net loss of $0.2 million compared to a net gain of $0.8 million for the first quarter of 2015. At June 30, 2015, OREO was carried at 42.6 percent of the aggregate loan balances at the time of foreclosure, compared with 39.0 percent at March 31, 2015.
Noninterest Revenue
Noninterest revenue was $74.3 million for the second quarter of 2015, compared with $69.8 million for the second quarter of 2014 and $73.3 million for the first quarter of 2015. These results included a positive MSR valuation adjustment of $4.3 million for the second quarter of 2015 compared with a negative MSR valuation adjustment of $2.1 million for the second quarter of 2014 and a negative MSR valuation adjustment of $3.0 million for the first quarter of 2015. Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.
Excluding the MSR valuation adjustments, net mortgage lending revenue was $9.8 million for the second quarter of 2015, compared with $11.2 million for the second quarter of 2014 and $11.6 million for the first quarter of 2015. Mortgage origination volume for the second quarter of 2015 was $417.2 million, compared with $291.0 million for the second quarter of 2014 and $311.1 million for the first quarter of 2015.
Credit and debit card fee revenue was $9.3 million for the second quarter of 2015, compared with $8.6 million for the second quarter of 2014 and $8.5 million for the first quarter of 2015. Deposit service charge revenue was $11.5 million for the second quarter of 2015, compared with $12.4 million for the second quarter of 2014 and $11.3 million for the first quarter of 2015. Insurance commission revenue was $29.3 million for the second quarter of 2015, compared with $28.6 million for the second quarter of 2014 and $33.5 million for the first quarter of 2015. Wealth management revenue was $5.5 million for the second quarter of 2015, compared with $5.8 million for the second quarter of 2014 and $6.2 million for the first quarter of 2015.
Noninterest Expense
Noninterest expense for the second quarter of 2015 was $128.2 million, compared with $128.0 million for the second quarter of 2014 and $136.9 million for the first quarter of 2015. Salaries and employee benefits expense was $79.8 million for the second quarter of 2015 compared to $74.7 million for the second quarter of 2014 and $81.2 million for the first quarter of 2015. Both the first and second quarters of 2015 reflect an increase in pension expense compared with the same quarters from the prior year. Total annual pension expense for 2015 is expected to be approximately $7 million higher than 2014 due to annual revisions to actuarial assumptions, including updates to the Society of Actuaries pension plan mortality tables. Foreclosed property expense was $1.6 million for the second quarter of 2015 compared with $4.2 million for the second quarter of 2014 and $2.0 million for the first quarter of 2015. Deposit insurance assessments were $2.4 million for the second quarter of 2015 compared to $2.0 million for the second quarter of 2014 and $2.3 million for the first quarter of 2015. During the first quarter of 2015, the Company incurred expense of $5.5 million to increase its litigation accrual for probable losses related to certain ongoing legal matters.
Capital Management
The Company's equity capitalization is comprised entirely of common stock. BancorpSouth's ratio of shareholders' equity to assets was 12.32 percent at June 30, 2015, compared with 12.24 percent at June 30, 2014 and 12.07 percent at March 31, 2015. The ratio of tangible shareholders' equity to tangible assets was 10.26 percent at June 30, 2015, compared with 10.03 percent at June 30, 2014 and 9.99 percent at March 31, 2015.
Estimated regulatory capital ratios at June 30, 2015 were calculated in accordance with the Basel III capital framework. BancorpSouth is a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 12.81 percent at June 30, 2015 and total risk based capital of 14.04 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, for "well capitalized" classification.
Transaction Closings and Announcements
On January 8, 2014, the Company announced the signing of a definitive merger agreement with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as "OIB"), headquartered in Monroe, Louisiana, pursuant to which Ouachita Bancshares Corp. will be merged with and into the Company. OIB operates 11 full-service banking offices along the I-20 corridor and has a loan production office in Madison, Mississippi. As of June 30, 2015, OIB, on a consolidated basis, reported total assets of $654.2 million, total loans of $463.2 million and total deposits of $543.0 million. Under the terms of the definitive agreement, the Company will issue approximately 3,675,000 shares of the Company's common stock plus $22.875 million in cash for all outstanding shares of Ouachita Bancshares Corp.'s capital stock, subject to certain conditions and potential adjustments. The merger has been unanimously approved by the Board of Directors of each company and was approved by OIB shareholders on April 8, 2014. On February 25, 2015, the Company re-filed the merger application for the merger with Ouachita Bancshares Corp. with the appropriate regulatory agencies. On June 30, 2015, the Company announced the merger agreement was extended through December 31, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. The terms of the amended agreement provide for a minimum total deal value of $111.1 million but also allow Ouachita Bancshares Corp. to terminate the agreement if the average closing price of the Company's common stock declines below a certain threshold prior to closing. The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.
On January 21, 2014, the Company announced the signing of a definitive merger agreement with Central Community Corporation, headquartered in Temple, Texas, pursuant to which Central Community Corporation will be merged with and into the Company. Central Community Corporation is the parent company of First State Bank Central Texas ("First State Bank"), which is headquartered in Austin, Texas. First State Bank operates 31 full-service banking offices in central Texas. As of June 30, 2015, Central Community Corporation, on a consolidated basis, reported total assets of $1.4 billion, total loans of $604.2 million and total deposits of $1.2 billion. Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company's common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation's capital stock, subject to certain conditions and potential adjustments. The merger has been unanimously approved by the Board of Directors of each company and was approved by Central Community Corporation shareholders on April 24, 2014. On February 25, 2015, the Company re-filed the merger application for the merger with Central Community Corporation with the appropriate regulatory agencies. On June 30, 2015, the Company announced the merger agreement was extended through December 31, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. The terms of the amended agreement provide for a minimum total deal value of $202.5 million but also allow Central Community Corporation to terminate the agreement if the average closing price of the Company's common stock declines below a certain threshold prior to closing. The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.
For additional information regarding the status of the merger with Ouachita Bancshares Corp. and the status of the merger with Central Community Corporation, please refer to the Current Report on Form 8-K that was previously filed with the Securities and Exchange Commission (the "SEC") on July 24, 2014, Part II, Item 5 of the Quarterly Report on Form 10-Q that was previously filed with the SEC on August 6, 2014, the Current Report on Form 8-K that was previously filed with the SEC on September 4, 2014, the Annual Report on Form 10-K that was previously filed with the SEC on February 24, 2015, and the Current Report on Form 8-K that was previously filed with the SEC on July 1, 2015.
Summary
Rollins concluded, "I am pleased to see the hard work and commitment of our teammates continue to drive better operating performance. Each quarter, we are seeing different teams step up and produce significant levels of growth. Our lending teams as well as our mortgage, insurance, and wealth management teams have contributed to meaningful revenue growth for our Company over the past several quarters. We've been able produce this revenue growth while continuing to challenge expenses and improve our operating efficiency. We are confident this simple approach will allow us to continue to improve performance going forward."
Conference Call
BancorpSouth will conduct a conference call to discuss its second quarter 2015 results on July 21, 2015, at 10:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com. A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.
About BancorpSouth, Inc.
BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.6 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 284 commercial banking, mortgage, and insurance locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.
Forward-Looking Statements
Certain statements contained in this news release may not be based upon historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "could," "estimate," "expect," "foresee," "hope," "intend," "may," "might," "plan," "will," or "would" or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the terms, timing and closings of the proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program, the findings and results of the joint investigation by the Consumer Financial Protection Bureau (the "CFPB") and the United States Department of Justice ("DOJ") of the Company's fair lending practices, the acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company's products and services if the proposed mergers close, the outcome of any instituted, pending or threatened material litigation, amortization expense for intangible assets, goodwill impairments, loan impairment, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue, fair value determinations, the amount of the Company's non-performing loans and leases, additions to OREO, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, continued weakness in the economic environment, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company's reserve for losses from representation and warranty obligations, the Company's foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, calculation of economic value of equity, impaired loan charge-offs, troubled debt restructurings, diversification of the Company's revenue stream, liquidity needs and strategies, sources of funding, net interest margin, declaration and payment of dividends, cost saving initiatives, improvement in the Company's efficiencies, operating expense trends, future acquisitions and consideration to be used therefor, the impact of litigation regarding debit card fees and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters.
The Company cautions readers not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors. These factors may include, but are not limited to, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program, the findings and results of the CFPB and the DOJ in their review of the Company's fair lending practices, the ability of the Company, Ouachita Bancshares Corp. and Central Community Corporation to obtain regulatory approval of and close the proposed mergers, the potential impact upon the Company of the delay in the closings of these proposed mergers, the impact of any ongoing, pending or threatened litigation, administrative and investigatory matters involving the Company, conditions in the financial markets and economic conditions generally, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company's OREO, limitations on the Company's ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Act, and supervision of the Company's operations, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic and environmental conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of the loss of any key Company personnel, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the Company's ability to adapt its products and services to evolving industry standards and consumer preferences, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company's growth strategy, interruptions or breaches in the Company's information system security, the failure of certain third-party vendors to perform, unfavorable ratings by rating agencies, dilution caused by the Company's issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, other factors generally understood to affect the assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies and other factors detailed from time to time in the Company's press and news releases, reports and other filings with the SEC. Forward-looking statements speak only as of the date that they were made, and, except as required by law, the Company does not undertake any obligation to update or revise forward-looking statements to reflect events or circumstances that occur after the date of this news release.
BancorpSouth, Inc.
Selected Financial Information
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended Quarter Ended Quarter Ended Quarter Ended Quarter Ended
6/30/2015 3/31/2015 12/31/2014 9/30/2014 6/30/2014
--------- --------- ---------- --------- ---------
Earnings Summary:
Interest revenue $114,630 $113,497 $114,237 $113,922 $111,499
Interest expense 7,321 7,424 7,792 8,309 8,418
----- ----- ----- ----- -----
Net interest revenue 107,309 106,073 106,445 105,613 103,081
Provision for credit losses (5,000) (5,000) - - -
------ ------ --- --- ---
Net interest revenue, after provision
for credit losses 112,309 111,073 106,445 105,613 103,081
Noninterest revenue 74,314 73,315 63,513 69,278 69,838
Noninterest expense 128,177 136,933 130,046 133,699 127,954
------- ------- ------- ------- -------
Income before income taxes 58,446 47,455 39,912 41,192 44,965
Income tax expense 18,733 15,189 11,252 12,414 14,097
------ ------ ------ ------ ------
Net income $39,713 $32,266 $28,660 $28,778 $30,868
======= ======= ======= ======= =======
Balance Sheet - Period End Balances
Total assets $13,634,931 $13,630,322 $13,326,369 $13,071,557 $12,985,887
Total earning assets 12,492,532 12,468,322 12,163,897 11,929,416 11,794,445
Total securities 2,251,153 2,194,373 2,156,927 2,211,462 2,332,192
Loans and leases, net of unearned income 10,007,571 9,726,970 9,712,936 9,510,542 9,311,661
Allowance for credit losses 138,312 136,660 142,443 143,950 147,132
Total deposits 11,134,961 11,252,654 10,972,339 10,701,537 10,670,414
Long-term debt 73,962 76,055 78,148 81,742 83,835
Total shareholders' equity 1,680,196 1,645,208 1,606,059 1,610,543 1,588,850
Balance Sheet - Average Balances
Total assets $13,516,546 $13,457,668 $13,131,130 $12,987,103 $12,933,879
Total earning assets 12,443,960 12,398,058 12,038,265 11,892,493 11,825,994
Total securities 2,211,931 2,190,989 2,180,000 2,272,114 2,394,045
Loans and leases, net of unearned income 9,868,318 9,670,987 9,579,059 9,393,709 9,232,743
Total deposits 11,148,246 11,126,210 10,802,194 10,662,841 10,650,077
Long-term debt 73,962 76,078 79,387 81,742 83,967
Total shareholders' equity 1,659,991 1,624,496 1,613,239 1,600,721 1,574,588
Nonperforming Assets:
Non-accrual loans and leases $67,766 $54,418 $58,052 $54,612 $64,533
Loans and leases 90+ days past due, still accruing 1,568 1,615 2,763 1,925 2,406
Restructured loans and leases, still accruing 10,109 5,433 10,920 12,398 6,712
Non-performing loans (NPLs) 79,443 61,466 71,735 68,935 73,651
------ ------ ------ ------ ------
Other real estate owned 24,299 27,889 33,984 42,691 55,253
------ ------ ------ ------ ------
Non-performing assets (NPAs) $103,742 $89,355 $105,719 $111,626 $128,904
======== ======= ======== ======== ========
Financial Ratios and Other Data:
Return on average assets 1.18% 0.97% 0.87% 0.88% 0.96%
Return on average shareholders' equity 9.60% 8.06% 7.05% 7.13% 7.86%
Return on tangible equity 11.66% 9.84% 8.81% 8.83% 9.74%
Pre-tax pre-provision return on average assets 1.59% 1.29% 1.21% 1.26% 1.39%
Noninterest income to average assets 2.21% 2.21% 1.92% 2.12% 2.17%
Noninterest expense to average assets 3.80% 4.13% 3.93% 4.08% 3.97%
Net interest margin-fully taxable equivalent 3.54% 3.56% 3.60% 3.62% 3.59%
Net interest rate spread 3.44% 3.46% 3.49% 3.50% 3.48%
Efficiency ratio (tax equivalent) 69.52% 75.17% 75.25% 75.19% 72.76%
Loan/deposit ratio 89.88% 86.44% 88.52% 88.87% 87.27%
Price to earnings mult (avg) 18.80 18.43 18.45 16.64 21.00
Market value to book value 148.34% 136.26% 134.91% 120.13% 148.53%
Market value to book value (avg) 142.10% 127.91% 130.16% 129.54% 143.72%
Market value to tangible book value 182.42% 168.52% 167.95% 149.58% 185.73%
Market value to tangible book value (avg) 174.75% 158.20% 162.04% 161.30% 179.75%
Headcount FTE 3,935 3,924 3,948 3,938 3,981
Credit Quality Ratios:
Net (recoveries) charge-offs to average loans and leases (annualized) (0.27%) 0.03% 0.06% 0.13% 0.11%
Provision for credit losses to average loans and leases (annualized) (0.20%) (0.21%) 0.00% 0.00% 0.00%
Allowance for credit losses to net loans and leases 1.38% 1.40% 1.47% 1.51% 1.58%
Allowance for credit losses to non-performing loans and leases 174.10% 222.33% 198.57% 208.82% 199.77%
Allowance for credit losses to non-performing assets 133.32% 152.94% 134.74% 128.96% 114.14%
Non-performing loans and leases to net loans and leases 0.79% 0.63% 0.74% 0.72% 0.79%
Non-performing assets to net loans and leases 1.04% 0.92% 1.09% 1.17% 1.38%
Equity Ratios:
Total shareholders' equity to total assets 12.32% 12.07% 12.05% 12.32% 12.24%
Tangible shareholders' equity to tangible assets 10.26% 9.99% 9.92% 10.14% 10.03%
Capital Adequacy:
Common Equity Tier 1 capital 12.60% 12.60% N/A N/A N/A
Tier 1 capital 12.81% 12.81% 13.26% 13.18% 13.09%
Total capital 14.04% 14.07% 14.52% 14.43% 14.35%
Tier 1 leverage capital 10.96% 10.71% 10.55% 10.47% 10.33%
Estimated for current quarter
Common Share Data:
Basic earnings per share $0.41 $0.33 $0.30 $0.30 $0.32
Diluted earnings per share 0.41 0.33 0.30 0.30 0.32
Cash dividends per share 0.08 0.08 0.08 0.08 0.05
Book value per share 17.37 17.04 16.69 16.77 16.54
Tangible book value per share 14.12 13.78 13.40 13.46 13.23
Market value per share (last) 25.76 23.22 22.51 20.14 24.57
Market value per share (high) 26.68 23.68 23.28 25.43 25.55
Market value per share (low) 22.83 19.64 19.22 20.11 22.16
Market value per share (avg) 24.68 21.80 21.72 21.72 23.78
Dividend payout ratio 18.25% 22.40% 25.17% 25.03% 15.56%
Total shares outstanding 96,755,530 96,544,502 96,254,903 96,065,021 96,046,057
Average shares outstanding - basic 96,625,794 96,359,885 96,173,000 96,052,260 96,034,475
Average shares outstanding - diluted 96,957,441 96,653,401 96,506,827 96,373,950 96,373,121
Yield/Rate:
(Taxable equivalent basis)
Loans, loans held for sale, and leases net of unearned income 4.23% 4.31% 4.30% 4.36% 4.38%
Available-for-sale securities:
Taxable 1.40% 1.54% 1.43% 1.42% 1.45%
Tax-exempt 5.44% 5.40% 5.30% 5.37% 5.44%
Short-term investments 0.24% 0.22% 0.24% 0.22% 0.24%
Total interest earning assets and revenue 3.78% 3.80% 3.85% 3.89% 3.88%
Deposits 0.23% 0.24% 0.25% 0.28% 0.28%
Demand - interest bearing 0.19% 0.18% 0.18% 0.17% 0.17%
Savings 0.12% 0.12% 0.12% 0.12% 0.12%
Other time 0.79% 0.82% 0.87% 0.96% 0.97%
Short-term borrowings 0.11% 0.12% 0.11% 0.10% 0.09%
Total int bearing dep & s/t borrowings 0.31% 0.31% 0.33% 0.36% 0.37%
Junior subordinated debt 2.86% 2.84% 2.82% 2.81% 2.81%
Long-term debt 2.90% 2.88% 2.86% 2.85% 2.84%
Total interest bearing liabilities and expense 0.34% 0.34% 0.36% 0.39% 0.40%
Interest bearing liabilities to interest earning assets 70.36% 71.13% 70.57% 71.07% 71.98%
Net interest tax equivalent adjustment $2,628 $2,653 $2,736 $2,810 $2,860
BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
Jun-15 Mar-15 Dec-14 Sep-14 Jun-14
------ ------ ------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from banks $183,541 $199,337 $204,231 $169,226 $201,196
Interest bearing deposits with other banks 34,438 360,469 153,019 70,408 44,949
Available-for-sale securities, at fair value 2,251,153 2,194,373 2,156,927 2,211,462 2,332,192
Loans and leases 10,041,455 9,761,555 9,749,540 9,546,250 9,347,429
Less: Unearned income 33,884 34,585 36,604 35,708 35,768
Allowance for credit losses 138,312 136,660 142,443 143,950 147,132
Net loans and leases 9,869,259 9,590,310 9,570,493 9,366,592 9,164,529
Loans held for sale 199,370 186,510 141,015 137,005 105,643
Premises and equipment, net 303,837 305,335 304,943 307,497 310,515
Accrued interest receivable 41,065 42,933 41,985 42,311 40,697
Goodwill 291,498 291,498 291,498 291,498 291,498
Other identifiable intangibles 22,415 23,476 24,508 25,619 26,745
Bank owned life insurance 247,983 246,148 247,076 243,827 241,962
Other real estate owned 24,299 27,889 33,984 42,691 55,253
Other assets 166,073 162,044 156,690 163,421 170,708
Total Assets $13,634,931 $13,630,322 $13,326,369 $13,071,557 $12,985,887
=========== =========== =========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest bearing $2,911,972 $2,914,949 $2,778,686 $2,811,156 $2,718,242
Interest bearing 4,881,469 4,979,710 4,868,054 4,498,275 4,511,760
Savings 1,407,616 1,395,857 1,331,963 1,311,874 1,299,203
Other time 1,933,904 1,962,138 1,993,636 2,080,232 2,141,209
Total deposits 11,134,961 11,252,654 10,972,339 10,701,537 10,670,414
Federal funds purchased and
securities sold under agreement
to repurchase 375,980 384,829 388,166 431,428 394,446
Short-term Federal Home Loan Bank borrowings
and other short-term borrowing 92,500 1,500 3,500 2,000 2,000
Accrued interest payable 3,494 3,371 3,400 3,894 3,926
Junior subordinated debt securities 23,198 23,198 23,198 23,198 23,198
Long-term debt 73,962 76,055 78,148 81,742 83,835
Other liabilities 250,640 243,507 251,559 217,215 219,218
Total Liabilities 11,954,735 11,985,114 11,720,310 11,461,014 11,397,037
Shareholders' Equity
--------------------
Common stock 241,889 241,361 240,637 240,165 240,118
Capital surplus 337,272 331,016 324,271 322,488 321,952
Accumulated other comprehensive loss (41,288) (37,033) (43,686) (15,513) (15,040)
Retained earnings 1,142,323 1,109,864 1,084,837 1,063,403 1,041,820
Total Shareholders' Equity 1,680,196 1,645,208 1,606,059 1,610,543 1,588,850
Total Liabilities & Shareholders' Equity $13,634,931 $13,630,322 $13,326,369 $13,071,557 $12,985,887
=========== =========== =========== =========== ===========
BancorpSouth, Inc.
Consolidated Average Balance Sheets
(Unaudited)
Jun-15 Mar-15 Dec-14 Sep-14 Jun-14
------ ------ ------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from banks $152,792 $132,734 $166,941 $155,876 $157,813
Interest bearing deposits with other banks 212,634 426,792 165,713 120,707 145,530
Available-for-sale securities, at fair value 2,211,931 2,190,989 2,180,000 2,272,114 2,394,045
Loans and leases 9,903,034 9,706,941 9,615,125 9,430,043 9,269,469
Less: Unearned income 34,716 35,954 36,066 36,334 36,726
Allowance for credit losses 140,483 141,299 143,842 146,592 149,676
Net loans and leases 9,727,835 9,529,688 9,435,217 9,247,117 9,083,067
Loans held for sale 151,077 109,291 113,493 105,964 53,676
Premises and equipment, net 305,335 305,277 306,630 309,373 313,012
Accrued interest receivable 38,268 39,279 39,034 38,758 38,291
Goodwill 291,498 291,498 291,498 291,498 293,082
Other identifiable intangibles 22,780 23,834 24,910 26,031 25,271
Bank owned life insurance 246,872 246,538 245,584 242,718 240,736
Other real estate owned 27,190 32,062 39,209 49,123 60,822
Other assets 128,334 129,686 122,901 127,824 128,534
Total Assets $13,516,546 $13,457,668 $13,131,130 $12,987,103 $12,933,879
=========== =========== =========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest bearing $2,895,451 $2,807,816 $2,837,919 $2,766,626 $2,683,939
Interest bearing 4,899,467 4,985,577 4,617,998 4,480,008 4,492,495
Savings 1,404,336 1,358,565 1,321,000 1,308,184 1,298,829
Other time 1,948,992 1,974,252 2,025,277 2,108,023 2,174,814
Total deposits 11,148,246 11,126,210 10,802,194 10,662,841 10,650,077
Federal funds purchased and
securities sold under agreement
to repurchase 399,447 398,237 426,842 444,017 435,505
Short-term Federal Home Loan Bank borrowings
and other short-term borrowing 6,555 3,056 2,261 6,489 3,621
Accrued interest payable 3,457 3,338 3,630 3,940 3,926
Junior subordinated debt securities 23,198 23,198 23,198 23,198 23,198
Long-term debt 73,962 76,078 79,387 81,742 83,967
Other liabilities 201,690 203,055 180,379 164,155 158,997
Total Liabilities 11,856,555 11,833,172 11,517,891 11,386,382 11,359,291
Shareholders' Equity
--------------------
Common stock 241,540 240,992 240,436 240,123 240,071
Capital surplus 332,993 326,476 323,372 322,219 321,628
Accumulated other comprehensive loss (38,534) (39,529) (22,747) (14,827) (16,663)
Retained earnings 1,123,992 1,096,557 1,072,178 1,053,206 1,029,552
Total Shareholders' Equity 1,659,991 1,624,496 1,613,239 1,600,721 1,574,588
Total Liabilities & Shareholders' Equity $13,516,546 $13,457,668 $13,131,130 $12,987,103 $12,933,879
=========== =========== =========== =========== ===========
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended YTD
------------- ---
Jun-15 Mar-15 Dec-14 Sep-14 Jun-14 Jun-15 Jun-14
------ ------ ------ ------ ------ ------ ------
INTEREST REVENUE:
Loans and leases $103,428 $102,135 $103,172 $102,681 $99,962 $205,563 $198,706
Deposits with other banks 126 236 101 68 87 362 363
Available-for-sale securities:
Taxable 6,424 6,844 6,429 6,646 7,133 13,268 14,680
Tax-exempt 3,335 3,377 3,471 3,607 3,669 6,712 7,384
Loans held for sale 1,317 905 1,064 920 648 2,222 965
----- --- ----- --- --- ----- ---
Total interest revenue 114,630 113,497 114,237 113,922 111,499 228,127 222,098
------- ------- ------- ------- ------- ------- -------
INTEREST EXPENSE:
Interest bearing demand 2,262 2,183 2,070 1,956 1,905 4,445 3,825
Savings 426 412 411 410 402 838 793
Other time 3,827 4,008 4,453 5,083 5,249 7,835 11,139
Federal funds purchased and securities sold
under agreement to repurchase 85 82 89 84 80 167 158
Long-term debt 556 577 603 612 619 1,133 1,248
Junior subordinated debt 165 163 165 164 162 328 330
Other - (1) 1 - 1 (1) 1
--- --- --- --- --- --- ---
Total interest expense 7,321 7,424 7,792 8,309 8,418 14,745 17,494
----- ----- ----- ----- ----- ------ ------
Net interest revenue 107,309 106,073 106,445 105,613 103,081 213,382 204,604
Provision for credit losses (5,000) (5,000) - - - (10,000) -
------ ------ --- --- --- ------- ---
Net interest revenue, after provision for
credit losses 112,309 111,073 106,445 105,613 103,081 223,382 204,604
------- ------- ------- ------- ------- ------- -------
NONINTEREST REVENUE:
Mortgage lending 14,102 8,567 3,250 6,938 9,089 22,669 12,483
Credit card, debit card and merchant fees 9,298 8,539 9,921 8,972 8,567 17,837 16,410
Deposit service charges 11,527 11,252 12,538 13,111 12,437 22,779 24,973
Security gains (losses), net 41 14 18 18 5 55 1
Insurance commissions 29,319 33,493 25,376 29,246 28,621 62,812 60,220
Wealth Management 5,508 6,210 5,826 5,961 5,828 11,718 11,951
Other 4,519 5,240 6,584 5,032 5,291 9,759 10,317
----- ----- ----- ----- ----- ----- ------
Total noninterest revenue 74,314 73,315 63,513 69,278 69,838 147,629 136,355
------ ------ ------ ------ ------ ------- -------
NONINTEREST EXPENSE:
Salaries and employee benefits 79,759 81,179 76,751 77,453 74,741 160,938 153,624
Occupancy, net of rental income 10,419 10,194 10,500 10,313 10,245 20,613 20,532
Equipment 4,024 3,974 3,996 4,205 4,169 7,998 8,668
Deposit insurance assessments 2,377 2,311 2,430 2,125 2,035 4,688 3,635
Other 31,598 39,275 36,369 39,603 36,764 70,873 68,202
------ ------ ------ ------ ------ ------ ------
Total noninterest expenses 128,177 136,933 130,046 133,699 127,954 265,110 254,661
------- ------- ------- ------- ------- ------- -------
Income before income taxes 58,446 47,455 39,912 41,192 44,965 105,901 86,298
Income tax expense 18,733 15,189 11,252 12,414 14,097 33,922 26,986
------ ------ ------ ------ ------ ------ ------
Net income $39,713 $32,266 $28,660 $28,778 $30,868 $71,979 $59,312
======= ======= ======= ======= ======= ======= =======
Net income per share: Basic $0.41 $0.33 $0.30 $0.30 $0.32 $0.75 $0.62
===== ===== ===== ===== ===== ===== =====
Diluted $0.41 $0.33 $0.30 $0.30 $0.32 $0.74 $0.62
===== ===== ===== ===== ===== ===== =====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Jun-15 Mar-15 Dec-14 Sep-14 Jun-14
------ ------ ------ ------ ------
LOAN AND LEASE PORTFOLIO:
Commercial and industrial $1,730,142 $1,676,366 $1,746,486 $1,714,012 $1,699,803
Real estate
Consumer mortgages 2,374,122 2,301,112 2,257,726 2,191,265 2,071,503
Home equity 558,460 538,042 531,374 518,263 506,988
Agricultural 239,884 236,898 239,616 242,023 238,003
Commercial and industrial-owner occupied 1,596,244 1,518,153 1,522,536 1,508,679 1,505,679
Construction, acquisition and development 860,407 892,730 853,623 819,636 772,162
Commercial real estate 2,081,394 1,993,473 1,961,977 1,916,577 1,901,759
Credit cards 110,552 106,287 113,426 109,464 109,186
All other 456,366 463,909 486,172 490,623 506,578
------- ------- ------- ------- -------
Total loans $10,007,571 $9,726,970 $9,712,936 $9,510,542 $9,311,661
----------- ---------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period $136,660 $142,443 $143,950 $147,132 $149,704
Loans and leases charged-off:
Commercial and industrial (1,436) (383) (1,179) (306) (860)
Real estate
Consumer mortgages (575) (892) (900) (1,510) (1,682)
Home equity (245) (498) (93) (510) (438)
Agricultural - (8) (4) (47) (18)
Commercial and industrial-owner occupied (404) (394) (220) (1,229) (936)
Construction, acquisition and development (272) (343) (566) (1,458) (41)
Commercial real estate (1,117) (1,007) (463) (70) (361)
Credit cards (527) (676) (580) (612) (608)
All other (441) (579) (847) (743) (671)
Total loans charged-off (5,017) (4,780) (4,852) (6,485) (5,615)
------ ------ ------ ------ ------
Recoveries:
Commercial and industrial 282 502 298 565 359
Real estate
Consumer mortgages 1,024 612 821 952 956
Home equity 185 241 102 157 182
Agricultural 36 269 16 45 26
Commercial and industrial-owner occupied 146 550 216 460 78
Construction, acquisition and development 8,978 604 897 392 808
Commercial real estate 600 720 623 286 226
Credit cards 183 153 160 116 135
All other 235 346 212 330 273
Total recoveries 11,669 3,997 3,345 3,303 3,043
------ ----- ----- ----- -----
Net recoveries (charge-offs) 6,652 (783) (1,507) (3,182) (2,572)
Provision charged to operating expense (5,000) (5,000) - - -
Balance, end of period $138,312 $136,660 $142,443 $143,950 $147,132
-------- -------- -------- -------- --------
Average loans for period $9,868,318 $9,670,987 $9,579,059 $9,393,709 $9,232,743
========== ========== ========== ========== ==========
Ratio:
Net (recoveries) charge-offs to average loans (annualized) (0.27%) 0.03% 0.06% 0.13% 0.11%
====== ==== ==== ==== ====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Jun-15 Mar-15 Dec-14 Sep-14 Jun-14
------ ------ ------ ------ ------
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial $9,740 $3,923 $3,934 $2,786 $2,917
Real estate
Consumer mortgages 21,636 21,435 23,668 23,408 24,355
Home equity 3,550 2,269 2,253 2,073 2,116
Agricultural 259 259 291 638 595
Commercial and industrial-owner occupied 14,007 9,687 11,190 7,495 11,094
Construction, acquisition and development 5,411 5,111 4,162 6,070 9,202
Commercial real estate 12,397 11,107 11,915 11,102 13,406
Credit cards 157 118 133 168 132
All other 609 509 506 872 716
--- --- --- --- ---
Total nonaccrual loans and leases $67,766 $54,418 $58,052 $54,612 $64,533
------- ------- ------- ------- -------
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and industrial $20 $30 $41 $60 $302
Real estate
Consumer mortgages 1,022 1,256 1,828 1,590 1,607
Home equity 141 - - 20 116
Agricultural - - - - 100
Commercial and industrial-owner occupied 14 - 39 - -
Construction, acquisition and development - - 387 - -
Commercial real estate - - 137 - -
Credit cards 342 329 327 255 281
All other 29 - 4 - -
Total loans and leases 90+ days past due, still accruing 1,568 1,615 2,763 1,925 2,406
----- ----- ----- ----- -----
Restructured Loans and Leases, Still Accruing 10,109 5,433 10,920 12,398 6,712
Total non-performing loans and leases 79,443 61,466 71,735 68,935 73,651
------ ------ ------ ------ ------
OTHER REAL ESTATE OWNED: 24,299 27,889 33,984 42,691 55,253
------ ------ ------ ------ ------
Total Non-performing Assets $103,742 $89,355 $105,719 $111,626 $128,904
======== ======= ======== ======== ========
Additions to Nonaccrual Loans and Leases During the Quarter $35,315 $23,607 $21,952 $16,707 $13,748
======= ======= ======= ======= =======
Loans and Leases 30-89 Days Past Due, Still Accruing:
Commercial and industrial $3,081 $3,270 $2,319 $3,753 $3,605
Real estate
Consumer mortgages 10,622 9,955 11,412 13,013 11,448
Home equity 2,527 2,594 2,047 1,315 960
Agricultural 116 161 366 190 1,122
Commercial and industrial-owner occupied 2,643 3,026 912 2,364 6,340
Construction, acquisition and development 1,120 5,471 4,811 1,036 1,616
Commercial real estate 1,651 3,032 1,510 926 1,658
Credit cards 529 581 739 602 556
All other 1,481 1,014 1,698 1,196 1,490
----- ----- ----- ----- -----
Total Loans and Leases 30-89 days past due, still accruing $23,770 $29,104 $25,814 $24,395 $28,795
======= ======= ======= ======= =======
Credit Quality Ratios:
Provision for credit losses to average loans and leases (annualized) (0.20%) (0.21%) 0.00% 0.00% 0.00%
Allowance for credit losses to net loans and leases 1.38% 1.40% 1.47% 1.51% 1.58%
Allowance for credit losses to non-performing loans and leases 174.10% 222.33% 198.57% 208.82% 199.77%
Allowance for credit losses to non-performing assets 133.32% 152.94% 134.74% 128.96% 114.14%
Non-performing loans and leases to net loans and leases 0.79% 0.63% 0.74% 0.72% 0.79%
Non-performing assets to net loans and leases 1.04% 0.92% 1.09% 1.17% 1.38%
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
June 30, 2015
-------------
Special
Pass Mention Substandard Doubtful Loss Impaired Total
---- ------- ----------- -------- ---- -------- -----
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial $1,688,364 $695 $33,809 $107 $ - $7,167 $1,730,142
Real estate
Consumer mortgages 2,288,980 - 81,312 226 - 3,604 2,374,122
Home equity 547,169 - 9,480 - - 1,811 558,460
Agricultural 232,626 - 7,258 - - - 239,884
Commercial and industrial-owner occupied 1,538,436 - 47,991 233 - 9,584 1,596,244
Construction, acquisition and development 826,039 - 30,309 444 - 3,615 860,407
Commercial real estate 2,016,614 - 55,452 295 - 9,033 2,081,394
Credit cards 110,552 - - - - - 110,552
All other 443,484 - 12,583 - - 299 456,366
Total loans $9,692,264 $695 $278,194 $1,305 $ - $35,113 $10,007,571
========== ==== ======== ====== ================== ======= ===========
March 31, 2015
--------------
Special
Pass Mention Substandard Doubtful Loss Impaired Total
---- ------- ----------- -------- ---- -------- -----
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial $1,642,264 $961 $31,202 $99 $ - $1,840 $1,676,366
Real estate
Consumer mortgages 2,218,792 - 78,928 227 - 3,165 2,301,112
Home equity 527,726 - 9,706 - - 610 538,042
Agricultural 225,990 - 10,908 - - - 236,898
Commercial and industrial-owner occupied 1,457,229 - 54,801 242 - 5,881 1,518,153
Construction, acquisition and development 851,938 - 37,303 329 - 3,160 892,730
Commercial real estate 1,923,659 - 59,497 300 - 10,017 1,993,473
Credit cards 106,287 - - - - - 106,287
All other 451,174 - 12,571 - - 164 463,909
Total loans $9,405,059 $961 $294,916 $1,197 $ - $24,837 $9,726,970
========== ==== ======== ====== ================== ======= ==========
BancorpSouth, Inc.
Geographical Information
(Dollars in thousands)
(Unaudited)
June 30, 2015
-------------
Alabama
and Florida
Panhandle Arkansas Louisiana Mississippi Missouri Tennessee Texas Other Total
--------- -------- --------- ----------- -------- --------- ----- ----- -----
LOAN AND LEASE PORTFOLIO:
Commercial and industrial $204,492 $242,960 $223,437 $558,152 $81,380 $132,576 $261,777 $25,368 $1,730,142
Real estate
Consumer mortgages 216,904 290,517 195,055 781,620 69,791 243,264 381,966 195,005 2,374,122
Home equity 76,832 40,315 58,910 216,732 21,724 134,093 8,717 1,137 558,460
Agricultural 6,177 70,084 28,903 73,413 2,942 12,269 46,030 66 239,884
Commercial and industrial-owner occupied 178,562 192,245 187,334 596,559 58,108 163,451 209,016 10,969 1,596,244
Construction, acquisition and development 120,525 100,107 83,103 224,127 19,593 150,280 133,290 29,382 860,407
Commercial real estate 302,727 345,327 245,432 502,630 201,763 185,194 230,854 67,467 2,081,394
Credit cards - - - - - - - 110,552 110,552
All other 29,618 36,406 25,019 198,509 2,322 32,805 36,230 95,457 456,366
Total loans $1,135,837 $1,317,961 $1,047,193 $3,151,742 $457,623 $1,053,932 $1,307,880 $535,403 $10,007,571
========== ========== ========== ========== ======== ========== ========== ======== ===========
NON-PERFORMING LOANS AND LEASES:
Commercial and industrial $1,211 $4,012 $472 $1,959 $191 $ - $2,903 $124 $10,872
Real estate
Consumer mortgages 954 3,008 979 8,642 1,014 1,657 1,136 6,399 23,789
Home equity 805 1,251 544 442 - 647 - 2 3,691
Agricultural 79 30 14 77 - 59 - - 259
Commercial and industrial-owner occupied 368 5,659 983 9,829 822 505 288 4 18,458
Construction, acquisition and development 468 733 - 1,625 1,666 2,556 - 1 7,049
Commercial real estate 1,078 882 2,774 2,596 441 3,258 2,162 - 13,191
Credit cards - - - - - - - 1,387 1,387
All other - 201 170 181 - 194 - 1 747
--- --- --- --- --- --- --- ---
Total loans $4,963 $15,776 $5,936 $25,351 $4,134 $8,876 $6,489 $7,918 $79,443
====== ======= ====== ======= ====== ====== ====== ====== =======
NON-PERFORMING LOANS AND LEASES
AS A PERCENTAGE OF OUTSTANDING:
Commercial and industrial 0.59% 1.65% 0.21% 0.35% 0.23% 0.00% 1.11% 0.49% 0.63%
Real estate
Consumer mortgages 0.44% 1.04% 0.50% 1.11% 1.45% 0.68% 0.30% 3.28% 1.00%
Home equity 1.05% 3.10% 0.92% 0.20% 0.00% 0.48% 0.00% 0.18% 0.66%
Agricultural 1.28% 0.04% 0.05% 0.10% 0.00% 0.48% 0.00% 0.00% 0.11%
Commercial and industrial-owner occupied 0.21% 2.94% 0.52% 1.65% 1.41% 0.31% 0.14% 0.04% 1.16%
Construction, acquisition and development 0.39% 0.73% 0.00% 0.73% 8.50% 1.70% 0.00% 0.00% 0.82%
Commercial real estate 0.36% 0.26% 1.13% 0.52% 0.22% 1.76% 0.94% 0.00% 0.63%
Credit cards 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.25% 1.25%
All other 0.00% 0.55% 0.68% 0.09% 0.00% 0.59% 0.00% 0.00% 0.16%
Total loans 0.44% 1.20% 0.57% 0.80% 0.90% 0.84% 0.50% 1.48% 0.79%
==== ==== ==== ==== ==== ==== ==== ==== ====
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
June 30, 2015
-------------
Alabama
and Florida
Panhandle Arkansas Louisiana Mississippi Missouri Tennessee Texas Other Total
--------- -------- --------- ----------- -------- --------- ----- ----- -----
OTHER REAL ESTATE OWNED:
Commercial and industrial $84 $ - $ - $ - $ - $ - $ - $ - $84
Real estate
Consumer mortgages 213 30 25 1,599 - 71 110 - 2,048
Home equity - - - 101 - - - - 101
Agricultural - - - 25 - - - - 25
Commercial and industrial-owner occupied 260 - - 587 - 307 60 - 1,214
Construction, acquisition and development 3,887 84 130 13,165 - 2,373 - - 19,639
Commercial real estate 170 - - 714 - 122 63 - 1,069
All other - 21 - 98 - - - - 119
Total loans $4,614 $135 $155 $16,289 $ - $2,873 $233 $ - $24,299
====== ==== ==== ======= ================== ====== ==== ============= =======
Quarter Ended
-------------
Jun-15 Mar-15 Dec-14 Sep-14 Jun-14
------ ------ ------ ------ ------
OTHER REAL ESTATE OWNED:
Balance, beginning of period $27,889 $33,984 $42,691 $55,253 $63,595
Additions to foreclosed properties
New foreclosed property 1,730 2,804 2,257 3,476 4,144
Reductions in foreclosed properties
Sales (4,284) (6,726) (8,548) (14,429) (10,269)
Writedowns (1,036) (2,173) (2,416) (1,609) (2,217)
Balance, end of period $24,299 $27,889 $33,984 $42,691 $55,253
======= ======= ======= ======= =======
FORECLOSED PROPERTY EXPENSE
(Gain) Loss on sale of other real estate owned $204 $(779) $1,643 $3,289 $1,073
Writedown of other real estate owned 1,036 2,173 2,416 1,609 2,217
Other foreclosed property expense 385 577 534 823 912
Total foreclosed property expense $1,625 $1,971 $4,593 $5,721 $4,202
====== ====== ====== ====== ======
BancorpSouth, Inc.
Noninterest Revenue and Expense
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Jun-15 Mar-15 Dec-14 Sep-14 Jun-14
------ ------ ------ ------ ------
NONINTEREST REVENUE:
Mortgage lending $14,102 $8,567 $3,250 $6,938 $9,089
Credit card, debit card and merchant fees 9,298 8,539 9,921 8,972 8,567
Deposit service charges 11,527 11,252 12,538 13,111 12,437
Securities gains, net 41 14 18 18 5
Insurance commissions 29,319 33,493 25,376 29,246 28,621
Trust income 3,543 4,036 3,791 3,537 3,624
Annuity fees 470 558 540 461 695
Brokerage commissions and fees 1,495 1,616 1,495 1,963 1,509
Bank-owned life insurance 1,835 1,899 3,249 1,865 1,885
Other miscellaneous income 2,684 3,341 3,335 3,167 3,406
Total noninterest revenue $74,314 $73,315 $63,513 $69,278 $69,838
======= ======= ======= ======= =======
NONINTEREST EXPENSE:
Salaries and employee benefits $79,759 $81,179 $76,751 $77,453 $74,741
Occupancy, net of rental income 10,419 10,194 10,500 10,313 10,245
Equipment 4,024 3,974 3,996 4,205 4,169
Deposit insurance assessments 2,377 2,311 2,430 2,125 2,035
Amortization of bond issue cost 12 12 12 12 12
Advertising 1,686 781 1,233 1,192 1,331
Foreclosed property expense 1,625 1,971 4,593 5,721 4,202
Telecommunications 1,897 1,922 1,960 2,254 2,258
Public relations 653 570 770 950 857
Data processing 5,324 5,393 4,804 5,317 5,384
Computer software 2,690 2,606 2,763 2,488 2,851
Amortization of intangibles 1,061 1,032 1,111 1,126 1,148
Legal 1,998 7,681 2,322 2,620 3,002
Merger expense 4 (2) 4 188 1,010
Postage and shipping 1,194 1,172 1,239 1,103 1,116
Other miscellaneous expense 13,454 16,137 15,558 16,632 13,593
Total noninterest expense $128,177 $136,933 $130,046 $133,699 $127,954
======== ======== ======== ======== ========
INSURANCE COMMISSIONS:
Property and casualty commissions $21,145 $20,673 $19,007 $22,746 $21,576
Life and health commissions 6,202 5,412 5,521 5,128 5,549
Risk management income 637 666 621 708 617
Other 1,335 6,742 227 664 879
Total insurance commissions $29,319 $33,493 $25,376 $29,246 $28,621
======= ======= ======= ======= =======
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Jun-15 Mar-15 Dec-14 Sep-14 Jun-14
------ ------ ------ ------ ------
MORTGAGE SERVICING RIGHTS:
Fair value, beginning of period $49,190 $51,296 $53,759 $52,272 $53,436
Additions to mortgage servicing rights:
Originations of servicing assets 4,344 2,499 2,453 2,400 2,565
Changes in fair value:
Due to payoffs/paydowns (1,930) (1,564) (1,480) (1,559) (1,616)
Due to change in valuation inputs or
assumptions used in the valuation model 4,321 (3,039) (3,434) 648 (2,111)
Other changes in fair value (1) (2) (2) (2) (2)
Fair value, end of period $55,924 $49,190 $51,296 $53,759 $52,272
======= ======= ======= ======= =======
Production revenue:
Origination $7,395 $8,914 $3,949 $3,736 $8,758
Servicing 4,316 4,256 4,215 4,113 4,058
Payoffs/Paydowns (1,930) (1,564) (1,480) (1,559) (1,616)
------ ------ ------ ------ ------
Total production revenue 9,781 11,606 6,684 6,290 11,200
Market value adjustment 4,321 (3,039) (3,434) 648 (2,111)
----- ------ ------ --- ------
Total mortgage lending revenue $14,102 $8,567 $3,250 $6,938 $9,089
======= ====== ====== ====== ======
Mortgage loans serviced $5,802,407 $5,705,638 $5,686,756 $5,649,897 $5,630,192
MSR/mtg loans serviced 0.96% 0.86% 0.90% 0.95% 0.93%
AVAILABLE-FOR-SALE SECURITIES, at fair value
U.S. Government agencies $1,336,846 $1,286,981 $1,215,054 $1,238,088 $1,333,368
Government agency issued residential
mortgage-back securities 217,191 200,381 209,230 218,748 229,414
Government agency issued commercial
mortgage-back securities 224,450 227,409 240,568 237,325 237,321
Obligations of states and political subdivisions 458,322 471,539 483,864 509,304 520,897
Other 14,344 8,063 8,211 7,997 11,192
Total available-for-sale securities $2,251,153 $2,194,373 $2,156,927 $2,211,462 $2,332,192
========== ========== ========== ========== ==========
BancorpSouth, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in thousands, except per share amounts)
(Unaudited)
Management evaluates the Company's capital position and operating performance by utilizing certain financial measures not calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including pre-tax, pre-provision earnings, net operating income, tangible shareholders' equity to
tangible assets, return on tangible equity, pre-tax pre-provision return on average assets, tangible book value per share, and operating earnings per share. The Company has included these non-GAAP financial measures in this news release for the applicable periods presented. Management believes that
the presentation of these non-GAAP financial measures (i) provides important supplemental information that contributes to a proper understanding of the Company's operating performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows
investors to evaluate the Company's performance in a manner similar to Management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below.
These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because
non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names.
Reconciliation of Pre-tax, Pre-provision Earnings and Net Operating Income to Net Income:
Quarter ended
-------------
6/30/2015 3/31/2015 12/31/2014 9/30/2014 6/30/2014
--------- --------- ---------- --------- ---------
Net income $39,713 $32,266 $28,660 $28,778 $30,868
Plus: Provision for credit losses (5,000) (5,000) - - -
Income tax expense 18,733 15,189 11,252 12,414 14,097
Pre-tax, pre-provision earnings $53,446 $42,455 $39,912 $41,192 $44,965
======= ======= ======= ======= =======
Net income $39,713 $32,266 $28,660 $28,778 $30,868
Plus: Merger expense, net of tax 3 (1) 2 117 626
One time charge for BSA, net of tax - - - 1,903 -
Net operating income $39,716 $32,265 $28,662 $30,798 $31,494
======= ======= ======= ======= =======
BancorpSouth, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in thousands, except per share amounts)
(Unaudited)
Reconciliation of Tangible Assets and Tangible Shareholders' Equity to
Total Assets and Total Shareholders' Equity:
Quarter ended
-------------
6/30/2015 3/31/2015 12/31/2014 9/30/2014 6/30/2014
--------- --------- ---------- --------- ---------
Tangible assets
Total assets $13,634,931 $13,630,322 $13,326,369 $13,071,557 $12,985,887
Less: Goodwill 291,498 291,498 291,498 291,498 291,498
Other identifiable intangible assets 22,415 23,476 24,508 25,619 26,745
Total tangible assets $13,321,018 $13,315,348 $13,010,363 $12,754,440 $12,667,644
Tangible shareholders' equity
Total shareholders' equity $1,680,196 $1,645,208 $1,606,059 $1,610,543 $1,588,850
Less: Goodwill 291,498 291,498 291,498 291,498 291,498
Other identifiable intangible assets 22,415 23,476 24,508 25,619 26,745
Total tangible shareholders' equity $1,366,283 $1,330,234 $1,290,053 $1,293,426 $1,270,607
Total average assets $13,516,546 $13,457,668 $13,131,130 $12,987,103 $12,933,879
Total common shares outstanding 96,755,530 96,544,502 96,254,903 96,065,021 96,046,057
Average shares outstanding-diluted 96,957,441 96,653,401 96,506,827 96,373,950 96,373,121
Tangible shareholders' equity to tangible assets* 10.26% 9.99% 9.92% 10.14% 10.03%
Return on tangible equity ** 11.66% 9.84% 8.81% 8.83% 9.74%
Pre-tax pre-provision return on average assets *** 1.59% 1.29% 1.21% 1.26% 1.39%
Tangible book value per share**** $14.12 $13.78 $13.40 $13.46 $13.23
Operating earnings per share***** $0.41 $0.33 $0.30 $0.32 $0.33
* Tangible shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less goodwill and other
identifiable intangible assets, divided by the difference of total assets less goodwill and other identifiable intangible assets.
** Return on tangible equity is defined by the Company as annualized net income divided by tangible shareholders' equity.
*** Pre-tax pre-provision return on average assets is defined by the Company as annualized pre-tax pre-provision earnings divided by
total average assets.
**** Tangible book value per share is defined by the Company as tangible shareholders' equity divided by total common shares outstanding.
***** Operating earnings per share is defined by the Company as net operating income divided by average shares outstanding-diluted.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bancorpsouth-announces-second-quarter-2015-financial-results-300115824.html
SOURCE BancorpSouth, Inc.
