BANCORPSOUTH, INC. TUPELO, Miss., Jan. 25, 2016 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and year ended December 31, 2015.
Highlights for the fourth quarter of 2015 included:
-- Net income of $21.2 million or $0.22 per diluted share.
-- Net operating income of $31.4 million or $0.33 per diluted share.
-- Generated net loan growth of $153.2 million, or 5.9 percent on an
annualized basis and deposit growth of $189.2 million, or 6.7 percent on
an annualized basis.
-- Net interest margin remained stable at 3.58 percent.
-- Continued stable credit quality resulted in no recorded provision for
credit losses for the quarter.
-- Other real estate owned ("OREO") declined $8.9 million, or 37.7 percent,
as a result of the disposition of several large parcels of property.
Related foreclosed property expense was elevated at $3.0 million.
-- Incurred a charge in the fourth quarter of 2015 of $16.5 million related
to the settlement of the 2010 class action lawsuit for $24 million
related to overdraft fees.
The Company reported net income of $21.2 million, or $0.22 per diluted share, for the fourth quarter of 2015 compared with net income of $28.7 million, or $0.30 per diluted share, for the fourth quarter of 2014 and net income of $34.3 million, or $0.36 per diluted share, for the third quarter of 2015. Additionally, the Company reported net income of $127.5 million, or $1.33 per diluted share, for the year ended December 31, 2015 compared to $116.8 million, or $1.21 per diluted share, for the year ended December 31, 2014.
The Company reported net operating income of $31.4 million, or $0.33 per diluted share, for the fourth quarter of 2015 compared to $28.7 million, or $0.30 per diluted share, for the fourth quarter of 2014 and $34.3 million, or $0.36 per diluted share, for the third quarter of 2015.
"Our fourth quarter results were impacted by elevated non-interest expense, particularly related to the legal settlement," remarked Dan Rollins, BancorpSouth Chairman and Chief Executive Officer. "While this settlement has an adverse impact on current quarter earnings, we believe it was in the best interest of our shareholders to put this case behind us and move forward. We also had the opportunity to dispose of several large parcels of foreclosed property, including our largest individual property, resulting in an $8.9 million decline in total OREO. Despite elevated legal and foreclosed property expense, we continue to be pleased with our core fundamental performance. We reported nice loan and deposit growth for the quarter. Additionally, both our net interest margin and our credit quality indicators remained stable. Finally, we continue to challenge expenses as many of our other core expense line items were either flat or down for the quarter.
"Additionally, we have begun settlement discussions with the Consumer Financial Protection Bureau and the U.S. Department of Justice regarding their joint investigation of our fair lending practices. While it is too early to speculate on the potential timing or outcome of these discussions, we are pleased that these agencies have opened this dialogue with us and we are working toward a resolution. However, if we are able to reach a settlement of this investigation, there is no guarantee that the terms would permit our pending mergers to move forward." The Company is currently unable to estimate any potential liability that may result from this matter. Prior to the filing of the Annual Report on Form 10-K for 2015, should a settlement be reached that results in a liability, the financial information in this release could be revised.
Net Interest Revenue
Net interest revenue was $111.2 million for the fourth quarter of 2015, an increase of 4.5 percent from $106.4 million for the fourth quarter of 2014 and an increase of 0.1 percent from $111.1 million for the third quarter of 2015. The fully taxable equivalent net interest margin was 3.58 percent for the fourth quarter of 2015 compared to 3.60 percent for the fourth quarter of 2014 and 3.59 percent for the third quarter of 2015. Yields on loans and leases were 4.15 percent for the fourth quarter of 2015 compared with 4.30 percent for the fourth quarter of 2014 and 4.22 percent for the third quarter of 2015, while yields on total interest earning assets were 3.79 percent for the fourth quarter of 2015 compared with 3.85 percent for the fourth quarter of 2014 and 3.82 percent for the third quarter of 2015. The average cost of deposits was 0.21 percent for the fourth quarter of 2015 compared to 0.25 percent for the fourth quarter of 2014 and 0.22 percent for the third quarter of 2015.
Asset, Deposit and Loan Activity
Total assets were $13.8 billion at December 31, 2015 compared with $13.3 billion at December 31, 2014. Loans and leases, net of unearned income, were $10.4 billion at December 31, 2015 compared with $9.7 billion at December 31, 2014.
Total deposits were $11.3 billion at December 31, 2015 compared with $11.0 billion at December 31, 2014. A decrease in time deposits of $140.1 million, or 7.0 percent, at December 31, 2015 compared to December 31, 2014 was more than offset by growth in other lower cost deposits. Noninterest bearing demand deposits increased $252.8 million, or 9.1 percent, over the same period. Additionally, savings deposits increased $110.4 million, or 8.3 percent, while interest bearing demand deposits increased $135.8 million, or 2.8 percent, over the same period.
Provision for Credit Losses and Allowance for Credit Losses
Earnings for the quarter reflect no recorded provision for credit losses, compared to no recorded provision for the fourth quarter of 2014 and a negative provision of $3.0 million for the third quarter of 2015. Total non-performing assets ("NPAs") were $109.7 million, or 1.06 percent of net loans and leases, at December 31, 2015 compared with $105.7 million, or 1.09 percent of net loans and leases, at December 31, 2014, and $113.9 million, or 1.11 percent of net loans and leases, at September 30, 2015.
Net charge-offs for the fourth quarter of 2015 were $6.6 million, compared with net charge-offs of $1.5 million for the fourth quarter of 2014 and net charge-offs of $2.3 million for the third quarter of 2015. Gross charge-offs were $9.5 million for the fourth quarter of 2015, compared with $4.9 million for the fourth quarter of 2014 and $7.4 million for the third quarter of 2015. Gross recoveries of previously charged-off loans were $3.0 million for the fourth quarter of 2015, compared with $3.3 million for the fourth quarter of 2014 and $5.1 million for the third quarter of 2015. Annualized net charge-offs were 0.25 percent of average loans and leases for the fourth quarter of 2015, compared with annualized net charge-offs of 0.06 percent for the fourth quarter of 2014 and annualized net charge-offs of 0.09 percent for the third quarter of 2015.
Non-performing loans ("NPLs") were $95.0 million, or 0.92 percent of net loans and leases, at December 31, 2015, compared with $71.7 million, or 0.74 percent of net loans and leases, at December 31, 2014, and $90.3 million, or 0.88 percent of net loans and leases, at September 30, 2015. The allowance for credit losses was $126.5 million, or 1.22 percent of net loans and leases, at December 31, 2015 compared with $142.4 million, or 1.47 percent of net loans and leases, at December 31, 2014 and $133.0 million, or 1.30 percent of net loans and leases, at September 30, 2015.
NPLs at December 31, 2015 consisted primarily of $83.0 million of nonaccrual loans, compared with $70.2 million of nonaccrual loans at September 30, 2015. NPLs at December 31, 2015 also included $2.0 million of loans 90 days or more past due and still accruing, compared with $1.4 million of such loans at September 30, 2015, and included restructured loans still accruing of $9.9 million at December 31, 2015, compared with $18.6 million of such loans at September 30, 2015. Early stage past due loans, representing loans 30-89 days past due, totaled $24.6 million at December 31, 2015 compared to $25.6 million at September 30, 2015.
OREO decreased $8.9 million to $14.8 million during the fourth quarter of 2015 from $23.7 million at September 30, 2015. This net decrease reflected $1.6 million of OREO added through foreclosure, offset by sales of OREO of $8.2 million. Write-downs in the value of existing properties were $2.3 million for the fourth quarter of 2015 compared to $0.5 million for the third quarter of 2015. Sales of OREO during the fourth quarter of 2015 resulted in a net loss of $0.5 million compared to a net gain of $0.2 million for the third quarter of 2015. At December 31, 2015, OREO was carried at 39.3 percent of the aggregate loan balances at the time of foreclosure, compared with 42.8 percent at September 30, 2015.
Noninterest Revenue
Noninterest revenue was $67.4 million for the fourth quarter of 2015, compared with $63.5 million for the fourth quarter of 2014 and $63.0 million for the third quarter of 2015. These results included a positive MSR valuation adjustment of $2.9 million for the fourth quarter of 2015 compared with a negative MSR valuation adjustment of $3.4 million for the fourth quarter of 2014 and a negative MSR valuation adjustment of $5.3 million for the third 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 $7.7 million for the fourth quarter of 2015, compared with $6.7 million for the fourth quarter of 2014 and $7.6 million for the third quarter of 2015. Mortgage origination volume for the fourth quarter of 2015 was $310.0 million, compared with $256.3 million for the fourth quarter of 2014 and $402.2 million for the third quarter of 2015.
Credit and debit card fee revenue was $9.4 million for the fourth quarter of 2015, compared with $9.9 million for the fourth quarter of 2014 and $9.3 million for the third quarter of 2015. Deposit service charge revenue was $11.8 million for the fourth quarter of 2015, compared with $12.5 million for the fourth quarter of 2014 and $12.2 million for the third quarter of 2015. Insurance commission revenue was $25.3 million for the fourth quarter of 2015, compared with $25.4 million for the fourth quarter of 2014 and $28.6 million for the third quarter of 2015. Wealth management revenue was $5.4 million for the fourth quarter of 2015, compared with $5.9 million for the fourth quarter of 2014 and $5.6 million for the third quarter of 2015.
Noninterest Expense
Noninterest expense for the fourth quarter of 2015 was $148.4 million, compared with $130.0 million for the fourth quarter of 2014 and $126.5 million for the third quarter of 2015. Non-interest expense for the fourth quarter of 2015 included the $16.5 million legal charge related to the settlement of the class action lawsuit related to overdraft fees. The settlement plus estimated administrative fees totaled $24.5 million, $8.0 million of which was accrued in prior years. Salaries and employee benefits expense was $80.2 million for the fourth quarter of 2015 compared to $76.8 million for the fourth quarter of 2014 and $81.4 million for the third quarter of 2015. Foreclosed property expense was $3.0 million for the fourth quarter of 2015 compared with $4.6 million for the fourth quarter of 2014 and $0.8 million for the third quarter of 2015. Deposit insurance assessments were $2.6 million for the fourth quarter of 2015 compared to $2.4 million for the fourth quarter of 2014 and $2.2 million for the third quarter of 2015.
Capital Management
The Company's equity capitalization is comprised entirely of common stock. BancorpSouth's ratio of shareholders' equity to assets was 12.00 percent at December 31, 2015, compared with 12.05 percent at December 31, 2014 and 11.93 percent at September 30, 2015. The ratio of tangible shareholders' equity to tangible assets was 9.96 percent at December 31, 2015, compared with 9.92 percent at December 31, 2014 and 9.88 percent at September 30, 2015.
Estimated regulatory capital ratios at December 31, 2015 were calculated in accordance with the Basel III capital framework. BancorpSouth is a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 12.31 percent at December 31, 2015 and total risk based capital of 13.40 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, for "well capitalized" classification.
Transactions
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 December 31, 2015, OIB, on a consolidated basis, reported total assets of $652.9 million, total loans of $463.8 million and total deposits of $562.0 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. Although the merger agreement has not been extended beyond December 31, 2015, the amended agreement remains in effect until terminated by the Board of Directors of the Company or OIB. 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 December 31, 2015, Central Community Corporation, on a consolidated basis, reported total assets of $1.4 billion, total loans of $615.0 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. Although the merger agreement has not been extended beyond December 31, 2015, the amended agreement remains in effect until terminated by the Board of Directors of the Company or Central Community Corporation. 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 proud of our team's continued progress as we all work together to improve our financial and operating performance. During 2015, our constant focus on expense control allowed us to keep total non-interest expense essentially flat for the year, excluding the impact of the class action settlement. We grew net loans and leases by 6.8 percent and total deposits by 3.3 percent while maintaining a stable net interest margin. Credit quality improved as well, as evidenced by our improvement in classified asset levels, low levels of net charge-offs, and negative provision for credit losses for the year. As we look forward to 2016, I'm confident our team of professionals will find a way to deliver on our goal of growing shareholder value."
Conference Call
BancorpSouth will conduct a conference call to discuss its fourth quarter 2015 results on January 26, 2016, 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 $13.8 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 241 full service branch locations as well additional mortgage, insurance, and loan production offices 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 terms, timing and outcome of the settlement discussions in connection with 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, 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, when and whether the joint investigation by the CFPB and the DOJ of the Company's fair lending practices is resolved by settlement and, if so, on what terms, 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
12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014
---------- --------- --------- --------- ----------
Earnings Summary:
Interest revenue $118,050 $118,201 $114,630 $113,497 $114,237
Interest expense 6,820 7,131 7,321 7,424 7,792
----- ----- ----- ----- -----
Net interest revenue 111,230 111,070 107,309 106,073 106,445
Provision for credit
losses - (3,000) (5,000) (5,000) -
--- ------ ------ ------ ---
Net interest revenue, after provision
for credit losses 111,230 114,070 112,309 111,073 106,445
Noninterest revenue 67,386 62,953 74,314 73,315 63,513
Noninterest expense 148,351 126,450 128,177 136,933 130,046
------- ------- ------- ------- -------
Income before income taxes 30,265 50,573 58,446 47,455 39,912
Income tax expense 9,096 16,230 18,733 15,189 11,252
----- ------ ------ ------ ------
Net income $21,169 $34,343 $39,713 $32,266 $28,660
======= ======= ======= ======= =======
Balance Sheet - Period End Balances
Total assets $13,798,662 $13,787,424 $13,634,931 $13,630,322 $13,326,369
Total earning assets 12,656,791 12,663,944 12,492,532 12,468,322 12,163,897
Total securities 2,082,329 2,161,125 2,251,153 2,194,373 2,156,927
Loans and leases, net of
unearned income 10,372,778 10,219,576 10,007,571 9,726,970 9,712,936
Allowance for credit
losses 126,458 133,009 138,312 136,660 142,443
Total deposits 11,331,161 11,141,946 11,134,961 11,252,654 10,972,339
Long-term debt 69,775 71,868 73,962 76,055 78,148
Total shareholders' equity 1,655,444 1,644,820 1,680,196 1,645,208 1,606,059
Balance Sheet - Average Balances
Total assets $13,724,595 $13,632,581 $13,516,546 $13,457,668 $13,131,130
Total earning assets 12,628,685 12,548,967 12,443,960 12,398,058 12,038,265
Total securities 2,110,195 2,207,935 2,211,931 2,190,989 2,180,000
Loans and leases, net of
unearned income 10,321,299 10,110,995 9,868,318 9,670,987 9,579,059
Total deposits 11,182,750 11,140,542 11,148,246 11,126,210 10,802,194
Long-term debt 69,775 71,868 73,962 76,078 79,387
Total shareholders' equity 1,650,924 1,680,123 1,659,991 1,624,496 1,613,239
Nonperforming Assets:
Non-accrual loans and
leases $83,028 $70,237 $67,766 $54,418 $58,052
Loans and leases 90+ days
past due, still accruing 2,013 1,436 1,568 1,615 2,763
Restructured loans and
leases, still accruing 9,876 18,578 10,109 5,433 10,920
Non-performing loans
(NPLs) 94,917 90,251 79,443 61,466 71,735
------ ------ ------ ------ ------
Other real estate owned 14,759 23,696 24,299 27,889 33,984
------ ------ ------ ------ ------
Non-performing assets
(NPAs) $109,676 $113,947 $103,742 $89,355 $105,719
======== ======== ======== ======= ========
Financial Ratios and Other Data:
Return on average assets 0.61% 1.00% 1.18% 0.97% 0.87%
Return on average
shareholders' equity 5.09% 8.11% 9.60% 8.06% 7.05%
Return on tangible equity 6.25% 10.23% 11.66% 9.84% 8.81%
Pre-tax pre-provision
return on average assets 0.87% 1.38% 1.59% 1.29% 1.21%
Noninterest income to
average assets 1.95% 1.83% 2.21% 2.21% 1.92%
Noninterest expense to
average assets 4.29% 3.68% 3.80% 4.13% 3.93%
Net interest margin-fully
taxable equivalent 3.58% 3.59% 3.54% 3.56% 3.60%
Net interest rate spread 3.48% 3.49% 3.44% 3.46% 3.49%
Efficiency ratio (tax
equivalent) 81.86% 71.56% 69.52% 75.17% 75.25%
Loan/deposit ratio 91.54% 91.72% 89.88% 86.44% 88.52%
Price to earnings mult
(avg) 18.17 16.98 18.80 18.43 18.45
Market value to book value 136.46% 135.80% 148.34% 136.26% 134.91%
Market value to book value
(avg) 142.53% 140.68% 142.10% 127.91% 130.16%
Market value to tangible
book value 168.15% 167.71% 182.42% 168.52% 167.95%
Market value to tangible
book value (avg) 175.64% 173.74% 174.75% 158.20% 162.04%
Headcount FTE 3,970 3,903 3,935 3,924 3,948
Credit Quality Ratios:
Net (recoveries) charge-
offs to average loans and
leases (annualized) 0.25% 0.09% (0.27%) 0.03% 0.06%
Provision for credit
losses to average loans
and leases (annualized) 0.00% (0.12%) (0.20%) (0.21%) 0.00%
Allowance for credit
losses to net loans and
leases 1.22% 1.30% 1.38% 1.40% 1.47%
Allowance for credit
losses to non-performing
loans and leases 133.23% 147.38% 174.10% 222.33% 198.57%
Allowance for credit
losses to non-performing
assets 115.30% 116.73% 133.32% 152.94% 134.74%
Non-performing loans and
leases to net loans and
leases 0.92% 0.88% 0.79% 0.63% 0.74%
Non-performing assets to
net loans and leases 1.06% 1.11% 1.04% 0.92% 1.09%
Equity Ratios:
Total shareholders' equity
to total assets 12.00% 11.93% 12.32% 12.07% 12.05%
Tangible shareholders'
equity to tangible assets 9.96% 9.88% 10.26% 9.99% 9.92%
Capital Adequacy:
Common Equity Tier 1
capital 12.11% 12.08% 12.60% 12.60% N/A
Tier 1 capital 12.31% 12.29% 12.81% 12.81% 13.26%
Total capital 13.40% 13.45% 14.04% 14.07% 14.52%
Tier 1 leverage capital 10.61% 10.56% 10.96% 10.71% 10.55%
Estimated for current quarter
Common Share Data:
Basic earnings per share $0.22 $0.36 $0.41 $0.33 $0.30
Diluted earnings per share 0.22 0.36 0.41 0.33 0.30
Cash dividends per share 0.10 0.10 0.08 0.08 0.08
Book value per share 17.58 17.50 17.37 17.04 16.69
Tangible book value per
share 14.27 14.17 14.12 13.78 13.40
Market value per share
(last) 23.99 23.77 25.76 23.22 22.51
Market value per share
(high) 27.23 26.54 26.68 23.68 23.28
Market value per share
(low) 22.44 22.09 22.83 19.64 19.22
Market value per share
(avg) 25.06 24.62 24.68 21.80 21.72
Dividend payout ratio 44.46% 28.01% 18.25% 22.40% 25.17%
Total shares outstanding 94,162,728 93,969,994 96,755,530 96,544,502 96,254,903
Average shares outstanding
-basic 94,111,408 96,202,871 96,625,794 96,359,885 96,173,000
Average shares outstanding
-diluted 94,384,443 96,467,728 96,957,441 96,653,401 96,506,827
Yield/Rate:
(Taxable equivalent basis)
Loans, loans held for
sale, and leases net of
unearned income 4.15% 4.22% 4.23% 4.31% 4.30%
Available-for-sale securities:
Taxable 1.48% 1.40% 1.40% 1.54% 1.43%
Tax-exempt 5.32% 5.32% 5.44% 5.40% 5.30%
Short-term investments 0.22% 0.20% 0.24% 0.22% 0.24%
Total interest earning
assets and revenue 3.79% 3.82% 3.78% 3.80% 3.85%
Deposits 0.21% 0.22% 0.23% 0.24% 0.25%
Demand -interest bearing 0.18% 0.18% 0.19% 0.18% 0.18%
Savings 0.12% 0.12% 0.12% 0.12% 0.12%
Other time 0.71% 0.76% 0.79% 0.82% 0.87%
Short-term borrowings 0.12% 0.12% 0.11% 0.12% 0.11%
Total int bearing dep & s/
t borrowings 0.28% 0.30% 0.31% 0.31% 0.33%
Junior subordinated debt 2.93% 2.87% 2.86% 2.84% 2.82%
Long-term debt 2.95% 2.91% 2.90% 2.88% 2.86%
Total interest bearing
liabilities and expense 0.31% 0.32% 0.34% 0.34% 0.36%
Interest bearing
liabilities to interest
earning assets 69.23% 69.68% 70.36% 71.13% 70.57%
Net interest tax
equivalent adjustment $2,601 $2,558 $2,628 $2,653 $2,736
BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
Dec-15 Sep-15 Jun-15 Mar-15 Dec-14
------ ------ ------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from
banks $154,192 $159,923 $183,541 $199,337 $204,231
Interest bearing
deposits with other
banks 43,777 113,068 34,438 360,469 153,019
Available-for-sale
securities, at fair
value 2,082,329 2,161,125 2,251,153 2,194,373 2,156,927
Loans and leases 10,404,326 10,254,013 10,041,455 9,761,555 9,749,540
Less: Unearned income 31,548 34,437 33,884 34,585 36,604
Allowance for credit
losses 126,458 133,009 138,312 136,660 142,443
Net loans and leases 10,246,320 10,086,567 9,869,259 9,590,310 9,570,493
Loans held for sale 157,907 170,175 199,370 186,510 141,015
Premises and
equipment, net 308,125 304,317 303,837 305,335 304,943
Accrued interest
receivable 40,901 41,599 41,065 42,933 41,985
Goodwill 291,498 291,498 291,498 291,498 291,498
Other identifiable
intangibles 20,545 21,466 22,415 23,476 24,508
Bank owned life
insurance 251,534 249,825 247,983 246,148 247,076
Other real estate
owned 14,759 23,696 24,299 27,889 33,984
Other assets 186,775 164,165 166,073 162,044 156,690
Total Assets $13,798,662 $13,787,424 $13,634,931 $13,630,322 $13,326,369
=========== =========== =========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest
bearing $3,031,528 $3,053,439 $2,911,972 $2,914,949 $2,778,686
Interest bearing 5,003,806 4,794,656 4,881,469 4,979,710 4,868,054
Savings 1,442,336 1,409,856 1,407,616 1,395,857 1,331,963
Other time 1,853,491 1,883,995 1,933,904 1,962,138 1,993,636
Total deposits 11,331,161 11,141,946 11,134,961 11,252,654 10,972,339
Federal funds purchased and
securities sold under agreement
to repurchase 405,937 425,203 375,980 384,829 388,166
Short-term Federal Home Loan Bank borrowings
and other short-term
borrowing 62,000 224,500 92,500 1,500 3,500
Accrued interest
payable 3,071 3,353 3,494 3,371 3,400
Junior subordinated
debt securities 23,198 23,198 23,198 23,198 23,198
Long-term debt 69,775 71,868 73,962 76,055 78,148
Other liabilities 248,076 252,536 250,640 243,507 251,559
Total Liabilities 12,143,218 12,142,604 11,954,735 11,985,114 11,720,310
Shareholders' Equity
--------------------
Common stock 235,407 234,925 241,889 241,361 240,637
Capital surplus 282,934 278,998 337,272 331,016 324,271
Accumulated other
comprehensive loss (41,825) (36,355) (41,288) (37,033) (43,686)
Retained earnings 1,178,928 1,167,252 1,142,323 1,109,864 1,084,837
Total Shareholders'
Equity 1,655,444 1,644,820 1,680,196 1,645,208 1,606,059
Total Liabilities &
Shareholders' Equity $13,798,662 $13,787,424 $13,634,931 $13,630,322 $13,326,369
=========== =========== =========== =========== ===========
BancorpSouth, Inc.
Consolidated Average Balance Sheets
(Unaudited)
Dec-15 Sep-15 Jun-15 Mar-15 Dec-14
------ ------ ------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from
banks $159,696 $159,569 $152,792 $132,734 $166,941
Interest bearing
deposits with other
banks 69,552 72,438 212,634 426,792 165,713
Available-for-sale
securities, at fair
value 2,110,195 2,207,935 2,211,931 2,190,989 2,180,000
Loans and leases 10,353,913 10,144,874 9,903,034 9,706,941 9,615,125
Less: Unearned income 32,614 33,879 34,716 35,954 36,066
Allowance for credit
losses 132,375 137,547 140,483 141,299 143,842
Net loans and leases 10,188,924 9,973,448 9,727,835 9,529,688 9,435,217
Loans held for sale 127,638 157,598 151,077 109,291 113,493
Premises and
equipment, net 306,881 304,948 305,335 305,277 306,630
Accrued interest
receivable 38,142 38,847 38,268 39,279 39,034
Goodwill 291,498 291,498 291,498 291,498 291,498
Other identifiable
intangibles 20,880 21,812 22,780 23,834 24,910
Bank owned life
insurance 250,577 248,798 246,872 246,538 245,584
Other real estate
owned 21,049 24,008 27,190 32,062 39,209
Other assets 139,563 131,682 128,334 129,686 122,901
Total Assets $13,724,595 $13,632,581 $13,516,546 $13,457,668 $13,131,130
=========== =========== =========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest
bearing $3,106,947 $2,992,903 $2,895,451 $2,807,816 $2,837,919
Interest bearing 4,782,234 4,822,567 4,899,467 4,985,577 4,617,998
Savings 1,421,361 1,413,187 1,404,336 1,358,565 1,321,000
Other time 1,872,208 1,911,885 1,948,992 1,974,252 2,025,277
Total deposits 11,182,750 11,140,542 11,148,246 11,126,210 10,802,194
Federal funds purchased and
securities sold under agreement
to repurchase 466,865 439,503 399,447 398,237 426,842
Short-term Federal Home Loan Bank borrowings
and other short-term
borrowing 107,408 62,136 6,555 3,056 2,261
Accrued interest
payable 3,340 3,600 3,457 3,338 3,630
Junior subordinated
debt securities 23,198 23,198 23,198 23,198 23,198
Long-term debt 69,775 71,868 73,962 76,078 79,387
Other liabilities 220,335 211,611 201,690 203,055 180,379
Total Liabilities 12,073,671 11,952,458 11,856,555 11,833,172 11,517,891
Shareholders' Equity
--------------------
Common stock 235,227 240,473 241,540 240,992 240,436
Capital surplus 282,076 325,118 332,993 326,476 323,372
Accumulated other
comprehensive loss (38,618) (40,476) (38,534) (39,529) (22,747)
Retained earnings 1,172,239 1,155,008 1,123,992 1,096,557 1,072,178
Total Shareholders'
Equity 1,650,924 1,680,123 1,659,991 1,624,496 1,613,239
Total Liabilities &
Shareholders' Equity $13,724,595 $13,632,581 $13,516,546 $13,457,668 $13,131,130
=========== =========== =========== =========== ===========
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended YTD
------------- ---
Dec-15 Sep-15 Jun-15 Mar-15 Dec-14 Dec-15 Dec-14
------ ------ ------ ------ ------ ------ ------
INTEREST REVENUE:
Loans and leases $107,164 $107,086 $103,428 $102,135 $103,172 $419,813 $404,559
Deposits with other banks 40 36 126 236 101 438 532
Available-for-sale securities:
Taxable 6,550 6,490 6,424 6,844 6,429 26,308 27,755
Tax-exempt 3,137 3,226 3,335 3,377 3,471 13,075 14,462
Loans held for sale 1,159 1,363 1,317 905 1,064 4,744 2,949
----- ----- ----- --- ----- ----- -----
Total interest revenue 118,050 118,201 114,630 113,497 114,237 464,378 450,257
------- ------- ------- ------- ------- ------- -------
INTEREST EXPENSE:
Interest bearing demand 2,166 2,209 2,262 2,183 2,070 8,820 7,851
Savings 434 431 426 412 411 1,703 1,614
Other time 3,356 3,646 3,827 4,008 4,453 14,837 20,675
Federal funds purchased and securities sold
under agreement to repurchase 112 104 85 82 89 383 331
Long-term debt 581 571 556 577 603 2,285 2,463
Junior subordinated debt 171 168 165 163 165 667 659
Other - 2 - (1) 1 1 2
--- --- --- --- --- --- ---
Total interest expense 6,820 7,131 7,321 7,424 7,792 28,696 33,595
----- ----- ----- ----- ----- ------ ------
Net interest revenue 111,230 111,070 107,309 106,073 106,445 435,682 416,662
Provision for credit losses - (3,000) (5,000) (5,000) - (13,000) -
--- ------ ------ ------ --- ------- ---
Net interest revenue, after provision for
credit losses 111,230 114,070 112,309 111,073 106,445 448,682 416,662
------- ------- ------- ------- ------- ------- -------
NONINTEREST REVENUE:
Mortgage lending 10,522 2,339 14,102 8,567 3,250 35,530 22,671
Credit card, debit card and
merchant fees 9,414 9,282 9,298 8,539 9,921 36,533 35,303
Deposit service charges 11,836 12,150 11,527 11,252 12,538 46,765 50,622
Security gains, net 48 33 41 14 18 136 37
Insurance commissions 25,348 28,584 29,319 33,493 25,376 116,744 114,842
Wealth Management 5,375 5,567 5,508 6,210 5,925 22,660 23,940
Other 4,843 4,998 4,519 5,240 6,485 19,600 21,731
----- ----- ----- ----- ----- ------ ------
Total noninterest revenue 67,386 62,953 74,314 73,315 63,513 277,968 269,146
------ ------ ------ ------ ------ ------- -------
NONINTEREST EXPENSE:
Salaries and employee benefits 80,177 81,354 79,759 81,179 76,751 322,469 307,828
Occupancy, net of rental income 10,434 10,819 10,419 10,194 10,500 41,866 41,345
Equipment 3,569 3,742 4,024 3,974 3,996 15,309 16,869
Deposit insurance assessments 2,630 2,191 2,377 2,311 2,430 9,509 8,190
Other 51,541 28,344 31,598 39,275 36,369 150,758 144,174
------ ------ ------ ------ ------ ------- -------
Total noninterest expenses 148,351 126,450 128,177 136,933 130,046 539,911 518,406
------- ------- ------- ------- ------- ------- -------
Income before income taxes 30,265 50,573 58,446 47,455 39,912 186,739 167,402
Income tax expense 9,096 16,230 18,733 15,189 11,252 59,248 50,652
----- ------ ------ ------ ------ ------ ------
Net income $21,169 $34,343 $39,713 $32,266 $28,660 $127,491 $116,750
======= ======= ======= ======= ======= ======== ========
Net income per share: Basic $0.22 $0.36 $0.41 $0.33 $0.30 $1.33 $1.22
===== ===== ===== ===== ===== ===== =====
Diluted $0.22 $0.36 $0.41 $0.33 $0.30 $1.33 $1.21
===== ===== ===== ===== ===== ===== =====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-15 Sep-15 Jun-15 Mar-15 Dec-14
------ ------ ------ ------ ------
LOAN AND LEASE PORTFOLIO:
Commercial and
industrial $1,747,774 $1,710,497 $1,730,142 $1,676,366 $1,746,486
Real estate
Consumer mortgages 2,472,202 2,447,132 2,374,122 2,301,112 2,257,726
Home equity 589,752 573,566 558,460 538,042 531,374
Agricultural 259,360 252,381 239,884 236,898 239,616
Commercial and
industrial-owner
occupied 1,617,429 1,605,811 1,596,244 1,518,153 1,522,536
Construction,
acquisition and
development 945,045 900,875 860,407 892,730 853,623
Commercial real
estate 2,188,048 2,141,398 2,081,394 1,993,473 1,961,977
Credit cards 112,165 109,576 110,552 106,287 113,426
All other 441,003 478,340 456,366 463,909 486,172
------- ------- ------- ------- -------
Total loans $10,372,778 $10,219,576 $10,007,571 $9,726,970 $9,712,936
----------- ----------- ----------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning
of period $133,009 $138,312 $136,660 $142,443 $143,950
Loans and leases charged-off:
Commercial and
industrial (6,193) (2,010) (1,436) (383) (1,179)
Real estate
Consumer mortgages (1,146) (1,382) (575) (892) (900)
Home equity (147) (314) (245) (498) (93)
Agricultural (16) (9) - (8) (4)
Commercial and
industrial-owner
occupied (357) (645) (404) (394) (220)
Construction,
acquisition and
development (221) (203) (272) (343) (566)
Commercial real
estate (122) (1,477) (1,117) (1,007) (463)
Credit cards (723) (706) (527) (676) (580)
All other (623) (628) (441) (579) (847)
Total loans
charged-off (9,548) (7,374) (5,017) (4,780) (4,852)
------ ------ ------ ------ ------
Recoveries:
Commercial and
industrial 354 897 282 502 298
Real estate
Consumer mortgages 596 461 1,024 612 821
Home equity 123 90 185 241 102
Agricultural 20 59 36 269 16
Commercial and
industrial-owner
occupied 307 1,831 146 550 216
Construction,
acquisition and
development 1,061 1,084 8,978 604 897
Commercial real
estate 149 187 600 720 623
Credit cards 152 170 183 153 160
All other 235 292 235 346 212
Total recoveries 2,997 5,071 11,669 3,997 3,345
----- ----- ------ ----- -----
Net (charge-offs)
recoveries (6,551) (2,303) 6,652 (783) (1,507)
Provision charged
to operating
expense - (3,000) (5,000) (5,000) -
Balance, end of
period $126,458 $133,009 $138,312 $136,660 $142,443
-------- -------- -------- -------- --------
Average loans for
period $10,321,299 $10,110,995 $9,868,318 $9,670,987 $9,579,059
=========== =========== ========== ========== ==========
Ratio:
Net (charge-offs)
recoveries to
average loans
(annualized) 0.25% 0.09% (0.27%) 0.03% 0.06%
==== ==== ====== ==== ====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-15 Sep-15 Jun-15 Mar-15 Dec-14
------ ------ ------ ------ ------
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and
industrial $8,493 $15,697 $9,740 $3,923 $3,934
Real estate
Consumer mortgages 21,637 21,959 21,636 21,435 23,668
Home equity 4,021 3,664 3,550 2,269 2,253
Agricultural 921 484 259 259 291
Commercial and
industrial-owner
occupied 16,512 12,690 14,007 9,687 11,190
Construction,
acquisition and
development 9,130 4,240 5,411 5,111 4,162
Commercial real
estate 21,741 10,730 12,397 11,107 11,915
Credit cards 188 215 157 118 133
All other 385 558 609 509 506
--- --- --- --- ---
Total nonaccrual
loans and leases $83,028 $70,237 $67,766 $54,418 $58,052
------- ------- ------- ------- -------
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and
industrial $60 $58 $20 $30 $41
Real estate
Consumer mortgages 1,655 1,068 1,022 1,256 1,828
Home equity - - 141 - -
Agricultural - - - - -
Commercial and
industrial-owner
occupied - - 14 - 39
Construction,
acquisition and
development - - - - 387
Commercial real
estate - - - - 137
Credit cards 298 310 342 329 327
All other - - 29 - 4
Total loans and
leases 90+ days
past due, still
accruing 2,013 1,436 1,568 1,615 2,763
----- ----- ----- ----- -----
Restructured Loans
and Leases, Still
Accruing 9,876 18,578 10,109 5,433 10,920
Total non-
performing loans
and leases 94,917 90,251 79,443 61,466 71,735
------ ------ ------ ------ ------
OTHER REAL ESTATE
OWNED: 14,759 23,696 24,299 27,889 33,984
------ ------ ------ ------ ------
Total Non-
performing Assets $109,676 $113,947 $103,742 $89,355 $105,719
======== ======== ======== ======= ========
Additions to
Nonaccrual Loans
and Leases During
the Quarter $34,050 $22,271 $35,315 $23,607 $21,952
======= ======= ======= ======= =======
Loans and Leases 30-89 Days Past Due, Still
Accruing:
Commercial and
industrial $2,409 $4,985 $3,081 $3,270 $2,319
Real estate
Consumer mortgages 15,128 10,789 10,622 9,955 11,412
Home equity 2,456 1,455 2,527 2,594 2,047
Agricultural 303 393 116 161 366
Commercial and
industrial-owner
occupied 1,018 3,888 2,643 3,026 912
Construction,
acquisition and
development 1,070 1,218 1,120 5,471 4,811
Commercial real
estate 830 798 1,651 3,032 1,510
Credit cards 677 788 529 581 739
All other 744 1,334 1,481 1,014 1,698
--- ----- ----- ----- -----
Total Loans and
Leases 30-89 days
past due, still
accruing $24,635 $25,648 $23,770 $29,104 $25,814
======= ======= ======= ======= =======
Credit Quality Ratios:
Provision for credit
losses to average
loans and leases
(annualized) 0.00% (0.12%) (0.20%) (0.21%) 0.00%
Allowance for credit
losses to net loans
and leases 1.22% 1.30% 1.38% 1.40% 1.47%
Allowance for credit
losses to non-
performing loans
and leases 133.23% 147.38% 174.10% 222.33% 198.57%
Allowance for credit
losses to non-
performing assets 115.30% 116.73% 133.32% 152.94% 134.74%
Non-performing
loans and leases to
net loans and
leases 0.92% 0.88% 0.79% 0.63% 0.74%
Non-performing
assets to net loans
and leases 1.06% 1.11% 1.04% 0.92% 1.09%
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
December 31, 2015
-----------------
Special
Pass Mention Substandard Doubtful Loss Impaired Total
---- ------- ----------- -------- ---- -------- -----
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and
industrial $1,721,118 $ - $19,529 $ - $ - $7,127 $1,747,774
Real estate
Consumer mortgages 2,399,081 - 68,768 363 - 3,990 2,472,202
Home equity 577,539 - 10,418 - - 1,795 589,752
Agricultural 250,579 - 7,909 - - 872 259,360
Commercial and
industrial-owner
occupied 1,554,984 - 50,304 - - 12,141 1,617,429
Construction,
acquisition and
development 920,372 - 17,090 - - 7,583 945,045
Commercial real
estate 2,124,448 - 45,658 161 - 17,781 2,188,048
Credit cards 112,165 - - - - - 112,165
All other 433,333 - 7,465 102 - 103 441,003
Total loans $10,093,619 $ - $227,141 $626 $ - $51,392 $10,372,778
=========== ================== ======== ==== ================== ======= ===========
September 30, 2015
------------------
Special
Pass Mention Substandard Doubtful Loss Impaired Total
---- ------- ----------- -------- ---- -------- -----
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and
industrial $1,671,522 $ - $24,967 $ - $ - $14,008 $1,710,497
Real estate
Consumer mortgages 2,369,160 - 73,753 107 - 4,112 2,447,132
Home equity 563,119 - 8,645 - - 1,802 573,566
Agricultural 243,814 - 8,235 - - 332 252,381
Commercial and
industrial-owner
occupied 1,541,771 - 55,289 224 - 8,527 1,605,811
Construction,
acquisition and
development 870,595 - 27,243 430 - 2,607 900,875
Commercial real
estate 2,072,229 - 59,514 410 - 9,245 2,141,398
Credit cards 109,576 - - - - - 109,576
All other 471,633 - 6,604 - - 103 478,340
Total loans $9,913,419 $ - $264,250 $1,171 $ - $40,736 $10,219,576
========== ================== ======== ====== ================== ======= ===========
BancorpSouth, Inc.
Geographical Information
(Dollars in thousands)
(Unaudited)
December 31, 2015
-----------------
Alabama
and Florida
Panhandle Arkansas Louisiana Mississippi Missouri Tennessee Texas Other Total
--------- -------- --------- ----------- -------- --------- ----- ----- -----
LOAN AND LEASE PORTFOLIO:
Commercial and
industrial $160,361 $199,347 $202,755 $618,901 $79,928 $116,514 $237,102 $132,866 $1,747,774
Real estate
Consumer mortgages 296,698 330,780 219,334 818,423 71,915 273,980 443,852 17,220 2,472,202
Home equity 83,979 42,448 63,859 221,588 23,163 142,825 10,264 1,626 589,752
Agricultural 7,852 86,172 30,930 78,729 3,118 12,468 40,091 - 259,360
Commercial and
industrial-owner
occupied 181,017 194,152 181,567 677,686 47,937 132,156 202,914 - 1,617,429
Construction,
acquisition and
development 108,851 97,151 76,801 315,295 22,621 138,126 186,200 - 945,045
Commercial real estate 332,985 360,884 241,093 593,677 206,352 184,338 268,719 - 2,188,048
Credit cards - - - - - - - 112,165 112,165
All other 72,347 48,554 30,130 165,509 3,081 41,062 56,900 23,420 441,003
Total loans $1,244,090 $1,359,488 $1,046,469 $3,489,808 $458,115 $1,041,469 $1,446,042 $287,297 $10,372,778
========== ========== ========== ========== ======== ========== ========== ======== ===========
NON-PERFORMING LOANS AND LEASES:
Commercial and
industrial $99 $884 $493 $6,228 $ - $17 $1,444 $143 $9,308
Real estate
Consumer mortgages 1,226 3,529 1,389 7,460 858 1,369 1,525 7,339 24,695
Home equity 783 1,291 519 885 - 560 - 2 4,040
Agricultural - - - 932 - 26 - - 958
Commercial and
industrial-owner
occupied 1,659 2,706 2,737 11,860 406 195 1,295 - 20,858
Construction,
acquisition and
development 53 636 199 6,783 1,570 1,418 65 - 10,724
Commercial real estate 3,718 1,181 2,459 12,193 428 2,234 172 - 22,385
Credit cards - - - - - - - 1,291 1,291
All other 102 120 55 211 - 169 - 1 658
--- --- --- --- --- --- --- ---
Total loans $7,640 $10,347 $7,851 $46,552 $3,262 $5,988 $4,501 $8,776 $94,917
====== ======= ====== ======= ====== ====== ====== ====== =======
NON-PERFORMING LOANS AND LEASES
AS A PERCENTAGE OF OUTSTANDING:
Commercial and
industrial 0.06% 0.44% 0.24% 1.01% 0.00% 0.01% 0.61% 0.11% 0.53%
Real estate
Consumer mortgages 0.41% 1.07% 0.63% 0.91% 1.19% 0.50% 0.34% 42.62% 1.00%
Home equity 0.93% 3.04% 0.81% 0.40% 0.00% 0.39% 0.00% 0.12% 0.69%
Agricultural 0.00% 0.00% 0.00% 1.18% 0.00% 0.21% 0.00% N/A 0.37%
Commercial and
industrial-owner
occupied 0.92% 1.39% 1.51% 1.75% 0.85% 0.15% 0.64% N/A 1.29%
Construction,
acquisition and
development 0.05% 0.65% 0.26% 2.15% 6.94% 1.03% 0.03% N/A 1.13%
Commercial real estate 1.12% 0.33% 1.02% 2.05% 0.21% 1.21% 0.06% N/A 1.02%
Credit cards N/A N/A N/A N/A N/A N/A N/A 1.15% 1.15%
All other 0.14% 0.25% 0.18% 0.13% 0.00% 0.41% 0.00% 0.00% 0.15%
Total loans 0.61% 0.76% 0.75% 1.33% 0.71% 0.57% 0.31% 3.05% 0.92%
==== ==== ==== ==== ==== ==== ==== ==== ====
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
December 31, 2015
-----------------
Alabama
and Florida
Panhandle Arkansas Louisiana Mississippi Missouri Tennessee Texas Other Total
--------- -------- --------- ----------- -------- --------- ----- ----- -----
OTHER REAL ESTATE OWNED:
Commercial and
industrial $84 $ - $ - $ - $ - $ - $ - $ - $84
Real estate
Consumer mortgages 167 191 - 1,786 173 156 4 - 2,477
Home equity - - - 101 - - - - 101
Agricultural - - - 25 - - - - 25
Commercial and
industrial-owner
occupied 61 - - 568 - 385 60 - 1,074
Construction,
acquisition and
development 2,305 168 130 6,033 - 1,576 - - 10,212
Commercial real
estate 170 108 - 210 127 - 63 - 678
All other - - - 90 - - 18 - 108
Total loans $2,787 $467 $130 $8,813 $300 $2,117 $145 $ - $14,759
====== ==== ==== ====== ==== ====== ==== ============= =======
Quarter Ended
-------------
Dec-15 Sep-15 Jun-15 Mar-15 Dec-14
------ ------ ------ ------ ------
OTHER REAL ESTATE OWNED:
Balance, beginning
of period $23,696 $24,299 $27,889 $33,984 $42,691
Additions to foreclosed properties
New foreclosed
property 1,555 1,333 1,730 2,804 2,257
Reductions in foreclosed properties
Sales (8,227) (1,412) (4,284) (6,726) (8,548)
Writedowns (2,265) (524) (1,036) (2,173) (2,416)
Balance, end of
period $14,759 $23,696 $24,299 $27,889 $33,984
======= ======= ======= ======= =======
FORECLOSED PROPERTY EXPENSE
(Gain) Loss on sale
of other real
estate owned $483 $(203) $204 $(779) $1,643
Writedown of other
real estate owned 2,265 524 1,036 2,173 2,416
Other foreclosed
property expense 266 487 385 577 534
Total foreclosed
property expense $3,014 $808 $1,625 $1,971 $4,593
====== ==== ====== ====== ======
BancorpSouth, Inc.
Noninterest Revenue and Expense
(Dollars in thousands)
(Unaudited)
Quarter Ended YTD
------------- ---
Dec-15 Sep-15 Jun-15 Mar-15 Dec-14 Dec-15 Dec-14
------ ------ ------ ------ ------ ------ ------
NONINTEREST REVENUE:
Mortgage lending $10,522 $2,339 $14,102 $8,567 $3,250 $35,530 $22,671
Credit card, debit card and
merchant fees 9,414 9,282 9,298 8,539 9,921 36,533 35,303
Deposit service charges 11,836 12,150 11,527 11,252 12,538 46,765 50,622
Securities gains, net 48 33 41 14 18 136 37
Insurance commissions 25,348 28,584 29,319 33,493 25,376 116,744 114,842
Trust income 3,469 3,653 3,543 4,036 3,791 14,701 14,520
Annuity fees 449 539 470 558 639 2,016 2,877
Brokerage commissions and fees 1,457 1,375 1,495 1,616 1,495 5,943 6,543
Bank-owned life insurance 1,881 1,842 1,835 1,899 3,249 7,457 8,848
Other miscellaneous income 2,962 3,156 2,684 3,341 3,236 12,143 12,883
Total noninterest revenue $67,386 $62,953 $74,314 $73,315 $63,513 $277,968 $269,146
======= ======= ======= ======= ======= ======== ========
NONINTEREST EXPENSE:
Salaries and employee benefits $80,177 $81,354 $79,759 $81,179 $76,751 $322,469 $307,828
Occupancy, net of rental income 10,434 10,819 10,419 10,194 10,500 41,866 41,345
Equipment 3,569 3,742 4,024 3,974 3,996 15,309 16,869
Deposit insurance assessments 2,630 2,191 2,377 2,311 2,430 9,509 8,190
Amortization of bond issue cost 12 12 12 12 12 48 48
Advertising 1,009 812 1,686 781 1,233 4,288 4,388
Foreclosed property expense 3,014 808 1,625 1,971 4,593 7,418 17,071
Telecommunications 1,807 1,825 1,897 1,922 1,960 7,451 8,720
Public relations 474 481 653 570 770 2,178 3,399
Data processing 5,608 5,598 5,324 5,393 4,804 21,923 20,736
Computer software 2,609 2,595 2,690 2,606 2,763 10,500 10,525
Amortization of intangibles 922 948 1,061 1,032 1,111 3,963 4,443
Legal 19,434 1,233 1,998 7,681 2,322 30,346 9,822
Merger expense 13 8 4 - 4 25 1,761
Postage and shipping 1,139 1,030 1,194 1,172 1,239 4,535 4,745
Other miscellaneous expense 15,500 12,994 13,454 16,135 15,558 58,083 58,516
Total noninterest expense $148,351 $126,450 $128,177 $136,933 $130,046 $539,911 $518,406
======== ======== ======== ======== ======== ======== ========
INSURANCE COMMISSIONS:
Property and casualty
commissions $18,814 $21,155 $21,145 $20,673 $19,007 $81,787 $83,316
Life and health commissions 5,823 5,775 6,202 5,412 5,521 23,212 21,208
Risk management income 672 709 637 666 621 2,684 2,651
Other 39 945 1,335 6,742 227 9,061 7,667
Total insurance commissions $25,348 $28,584 $29,319 $33,493 $25,376 $116,744 $114,842
======= ======= ======= ======= ======= ======== ========
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-15 Sep-15 Jun-15 Mar-15 Dec-14
------ ------ ------ ------ ------
MORTGAGE SERVICING RIGHTS:
Fair value, beginning of
period $52,973 $55,924 $49,190 $51,296 $53,759
Additions to mortgage servicing rights:
Originations of servicing
assets 3,065 4,231 4,344 2,499 2,453
Changes in fair value:
Due to payoffs/paydowns (1,633) (1,872) (1,930) (1,564) (1,480)
Due to change in valuation inputs or
assumptions used in the
valuation model 2,865 (5,308) 4,321 (3,039) (3,434)
Other changes in fair value (2) (2) (1) (2) (2)
Fair value, end of period $57,268 $52,973 $55,924 $49,190 $51,296
======= ======= ======= ======= =======
Production revenue:
Origination $4,909 $5,154 $7,395 $8,914 $3,949
Servicing 4,381 4,365 4,316 4,256 4,215
Payoffs/Paydowns (1,633) (1,872) (1,930) (1,564) (1,480)
------ ------ ------ ------ ------
Total production revenue 7,657 7,647 9,781 11,606 6,684
Market value adjustment 2,865 (5,308) 4,321 (3,039) (3,434)
----- ------ ----- ------ ------
Total mortgage lending revenue $10,522 $2,339 $14,102 $8,567 $3,250
======= ====== ======= ====== ======
Mortgage loans serviced $6,011,236 $5,942,736 $5,802,407 $5,705,638 $5,686,756
MSR/mtg loans serviced 0.95% 0.89% 0.96% 0.86% 0.90%
AVAILABLE-FOR-SALE SECURITIES, at fair value
U.S. Government agencies $1,244,640 $1,255,717 $1,336,846 $1,286,981 $1,215,054
Government agency issued residential
mortgage-back securities 140,540 206,878 217,191 200,381 209,230
Government agency issued commercial
mortgage-back securities 260,693 229,922 224,450 227,409 240,568
Obligations of states and
political subdivisions 417,499 451,600 458,322 471,539 483,864
Other 18,957 17,008 14,344 8,063 8,211
Total available-for-sale
securities $2,082,329 $2,161,125 $2,251,153 $2,194,373 $2,156,927
========== ========== ========== ========== ==========
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
-------------
12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014
---------- --------- --------- --------- ----------
Net income $21,169 $34,343 $39,713 $32,266 $28,660
Plus: Provision for credit
losses - (3,000) (5,000) (5,000) -
Income tax expense 9,096 16,230 18,733 15,189 11,252
Pre-tax, pre-provision earnings $30,265 $47,573 $53,446 $42,455 $39,912
======= ======= ======= ======= =======
Net income $21,169 $34,343 $39,713 $32,266 $28,660
Plus: Merger expense, net of
tax 8 5 3 (1) 2
Legal charge, net of tax 10,246 - - - -
Net operating income $31,423 $34,348 $39,716 $32,265 $28,662
======= ======= ======= ======= =======
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
-------------
12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014
---------- --------- --------- --------- ----------
Tangible assets
Total assets $13,798,662 $13,787,424 $13,634,931 $13,630,322 $13,326,369
Less: Goodwill 291,498 291,498 291,498 291,498 291,498
Other identifiable intangible assets 20,545 21,466 22,415 23,476 24,508
Total tangible assets $13,486,619 $13,474,460 $13,321,018 $13,315,348 $13,010,363
Tangible shareholders' equity
Total shareholders' equity $1,655,444 $1,644,820 $1,680,196 $1,645,208 $1,606,059
Less: Goodwill 291,498 291,498 291,498 291,498 291,498
Other identifiable intangible assets 20,545 21,466 22,415 23,476 24,508
Total tangible shareholders' equity $1,343,401 $1,331,856 $1,366,283 $1,330,234 $1,290,053
Total average assets $13,724,595 $13,632,581 $13,516,546 $13,457,668 $13,131,130
Total common shares outstanding 94,162,728 93,969,994 96,755,530 96,544,502 96,254,903
Average shares outstanding-diluted 94,384,443 96,467,728 96,957,441 96,653,401 96,506,827
Tangible shareholders' equity to tangible assets* 9.96% 9.88% 10.26% 9.99% 9.92%
Return on tangible equity ** 6.25% 10.23% 11.66% 9.84% 8.81%
Pre-tax pre-provision return on average assets *** 0.87% 1.38% 1.59% 1.29% 1.21%
Tangible book value per share**** $14.27 $14.17 $14.12 $13.78 $13.40
Operating earnings per share***** $0.33 $0.36 $0.41 $0.33 $0.30
* Tangible shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less goodwill and other
identifiable intangible assets, divided by the difference of total assets less goodwill and other identifiable intangible
assets.
** Return on tangible equity is defined by the Company as annualized net income divided by tangible shareholders' equity.
*** Pre-tax pre-provision return on average assets is defined by the Company as annualized pre-tax pre-provision earnings divided
by total average assets.
**** Tangible book value per share is defined by the Company as tangible shareholders' equity divided by total common shares
outstanding.
***** Operating earnings per share is defined by the Company as net operating income divided by average shares outstanding-diluted.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bancorpsouth-announces-fourth-quarter-2015-financial-results-300209283.html
SOURCE BancorpSouth, Inc.
