BancorpSouth, Inc. : BancorpSouth Announces First Quarter 2012 Earnings of $22.9 Million or $0.25 per Diluted Share
04/23/2012| 04:05pm US/Eastern
Recommend:
TUPELO, Miss., April 23, 2012 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended March 31, 2012. The Company reported net income of $22.9 million, or $0.25 per diluted share, for the first quarter of 2012 compared with a net loss of $0.5 million, or $0.01 per diluted share, for the first quarter of 2011 and net income of $13.3 million, or $0.16 per diluted share, for the fourth quarter of 2011.
"Our results for the first quarter reflect our highest level of quarterly earnings in over two years," remarked Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth. "We are also pleased to report additional meaningful improvement in asset quality. Earnings for the quarter reflect decreases in credit costs as a result of asset quality improvement as well as another exceptional quarter for our noninterest revenue lines of business, particularly our mortgage operation."
Earnings for the quarter benefited from a reduction in the provision for credit losses to $10.0 million compared to $53.5 million for the first quarter of 2011 and $19.3 million for the fourth quarter of 2011. Non-performing loans ("NPLs") declined $37.0 million, or 11.5 percent, during the first quarter of 2012 to $285.2 million at March 31, 2012 compared with $322.3 million at December 31, 2011. NPLs have declined $139.8 million, or 32.9 percent, from $425.0 million at March 31, 2011. In addition, gross nonaccrual loan formation was $40.4 million for the first quarter of 2012 compared to $111.2 million for the first quarter of 2011 and $39.5 million for the fourth quarter of 2011. Total loans 30 - 89 days past due decreased during the first quarter of 2012 to $29.0 million at March 31, 2012 from $37.5 million at December 31, 2011. Net charge-offs decreased $0.5 million, or 2.0 percent, to $23.3 million for the first quarter of 2012 compared with $23.8 million for the fourth quarter of 2011. Net charge-offs during the first quarter of 2012 included $15.4 million of charge-offs of loans which had been impaired and reserved for in prior quarters.
Patterson added, "We continue to benefit from solid results produced by our noninterest revenue lines of business. Our mortgage business generated $395.1 million of new loans during the first quarter and contributed $15.1 million of revenue including a positive mortgage servicing rights ("MSR") valuation adjustment of $3.7 million. Also, our insurance group produced organic growth on both a comparable and sequential quarter basis."
Net Interest Revenue
Net interest revenue was $105.6 million for the first quarter of 2012, a decrease of 3.5 percent from $109.4 million for the first quarter of 2011 and a decrease of 1.8 percent from $107.5 million for the fourth quarter of 2011. The fully taxable equivalent net interest margin was 3.66 percent for the first quarter of 2012 compared with 3.69 percent for both the first and fourth quarters of 2011.
Asset, Deposit and Loan Activity
Total assets were $13.3 billion at March 31, 2012 compared with $13.5 billion at March 31, 2011. Total deposits were $11.1 billion at March 31, 2012, a decrease of 3.3 percent from $11.5 billion at March 31, 2011. Loans and leases, net of unearned income, were $8.7 billion at March 31, 2012, a decrease of 5.5 percent from $9.2 billion at March 31, 2011.
The construction, acquisition, and development ("CAD") loan portfolio, which decreased $259.2 million, or 23.2 percent, from March 31, 2011 to March 31, 2012, accounted for 54.5 percent of the decline in net loans and leases over the same time period. Excluding the impact of the CAD loan portfolio, net loans and leases declined $216.7 million, or 2.7 percent, during this period.
Patterson added, "Deposit balances at the end of the first quarter of 2012 compared to the end of the first quarter of 2011 reflect a shift from time deposits and interest bearing demand deposits to savings and noninterest bearing demand deposits." Time deposits, which decreased $623.0 million, or 17.9 percent, during this period, were offset partially by significant growth in noninterest bearing demand deposits, which increased $232.0 million, or 11.4 percent, over the period. Additionally, savings deposits increased $134.7 million, or 14.4 percent, while interest bearing demand deposits decreased $125.5 million, or 2.5 percent, over the period. As of March 31, 2012, approximately $1.1 billion of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 1.02 percent.
Provision for Credit Losses and Allowance for Credit Losses
For the first quarter of 2012, the provision for credit losses was $10.0 million, compared with $53.5 million for the first quarter of 2011 and $19.3 million for the fourth quarter of 2011. The decrease in the provision for credit losses reflects a decline in the formation of new non-accrual loans, including fewer loans being identified for impairment, continued stabilization in values of previously impaired loans, decreased past due balances and lower net charge-offs.
Net charge-offs for the first quarter of 2012 were $23.3 million, compared with $52.1 million for the first quarter of 2011 and $23.8 million for the fourth quarter of 2011. Recoveries increased to $5.5 million for the first quarter of 2012, compared with $1.7 million for the first quarter of 2011 and $2.6 million for the fourth quarter of 2011. Annualized net charge-offs were 1.06 percent of average loans and leases for the first quarter of 2012, compared with 2.24 percent for the first quarter of 2011 and 1.06 percent for the fourth quarter of 2011.
NPLs were $285.2 million, or 3.26 percent of net loans and leases, at March 31, 2012 compared with $425.0 million, or 4.61 percent of net loans and leases, at March 31, 2011 and $322.3 million, or 3.63 percent of net loans and leases, at December 31, 2011. The allowance for credit losses was $181.8 million, or 2.08 percent of net loans and leases, at March 31, 2012 compared with $198.3 million, or 2.15 percent of net loans and leases, at March 31, 2011 and $195.1 million, or 2.20 percent of net loans and leases, at December 31, 2011. Patterson added, "The first quarter reduction in the allowance for credit losses was driven primarily by charge-offs of $15.4 million associated with loans that had been identified and reported as impaired and were reserved for in previous quarters."
NPLs at March 31, 2012 consisted primarily of $253.2 million of nonaccrual loans, compared with $276.8 million of nonaccrual loans at December 31, 2011. Included in the reduction of nonaccrual loans during the first quarter of 2012 were payments received on nonaccrual loans of $20.6 million. NPLs at March 31, 2012 also included $1.7 million of loans 90 days or more past due and still accruing, compared with $3.4 million at December 31, 2011, and included restructured loans still accruing of $30.3 million at March 31, 2012, compared with $42.0 million at December 31, 2011. Loans and leases 30 to 89 days past due were $29.0 million at March 31, 2012 compared with $37.5 million at December 31, 2011.
At March 31, 2012, $76.3 million of NPLs were residential CAD loans, $45.1 million were other CAD loans, $46.8 million were commercial real estate loans and $52.2 million were consumer mortgages. NPLs from all other loan types totaled $64.8 million at March 31, 2012. Included in nonaccrual loans at March 31, 2012 were $137.5 million of loans, or 54.3 percent of total nonaccrual loans, that were paying as agreed, compared with $141.2 million, or 51.0 percent, at the end of the fourth quarter of 2011. These loans were generally placed on nonaccrual status because the collateral values were less than the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or will be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values. Such loans are generally deemed to be impaired, with a specific reserve established for the difference in the balance owed and the disposition value of the collateral.
At the end of the first quarter, 83.4 percent of nonaccrual loans were determined to be collateral dependent, and after write-downs and specific reserves, the remaining book balance of these loans was 69.6 percent of the unpaid principal balance. At March 31, 2012, coverage of unimpaired nonaccrual loans by the nonspecified allowance for credit losses was 371 percent and coverage of unimpaired NPLs by the nonspecified allowance for credit losses was 211 percent.
Other real estate owned ("OREO") decreased $6.0 million to $167.8 million during the first quarter of 2012. This decrease reflected $10.8 million added through foreclosure, offset by sales of other real estate owned of $11.8 million. OREO sales were $16.7 million for the fourth quarter of 2011. Write-downs in the value of existing properties were $5.0 million for the first quarter of 2012, representing a decrease of $3.7 million from $8.7 million for the fourth quarter of 2011. Sales of OREO during the first quarter of 2012 resulted in no material net gain or loss, consistent with the fourth quarter of 2011. At March 31, 2012, OREO was carried at 52.4 percent of the aggregate loan balances at the time of foreclosure, compared with 54.5 percent at December 31, 2011.
Noninterest Revenue
Noninterest revenue was $72.4 million for the first quarter of 2012, compared with $68.3 million for the first quarter of 2011 and $65.3 million for the fourth quarter of 2011. These results included positive MSR valuation adjustments of $3.7 million and $2.5 million for the first quarters of 2012 and 2011, respectively, and a negative MSR valuation adjustment of $1.0 million for the fourth quarter of 2011.
Excluding the MSR valuation adjustments, net mortgage lending revenue was $11.4 million for the first quarter of 2012, compared with $5.0 million for the first quarter of 2011 and $9.9 million for the fourth quarter of 2011. Mortgage origination volume for the first quarter of 2012 was $395.1 million, compared with $202.8 million for the first quarter of 2011 and $389.6 million for the fourth quarter of 2011.
Credit and debit card fees decreased $2.8 million, or 27.3 percent, for the first quarter of 2012 from the first quarter of 2011 and decreased $0.3 million, or 3.3 percent, from the fourth quarter of 2011. Service charges were essentially flat for the comparable quarters and declined $2.3 million, or 13.2 percent, on a sequential quarter basis. Insurance commissions rose $0.6 million, or 2.7 percent, for the comparable quarters and increased $3.7 million, or 19.3 percent, on a sequential quarter basis.
Noninterest Expense
Noninterest expense for the first quarter of 2012 was $135.7 million, compared with $130.0 million for the first quarter of 2011 and $135.9 million for the fourth quarter of 2011. Salaries and employee benefits expense increased to $74.9 million for the first quarter of 2012 from $70.4 million for the first quarter of 2011 and $70.5 million for the fourth quarter of 2011. This is attributable primarily to increases in FICA taxes, employee benefits and incentive compensation. Foreclosed property expense increased to $8.4 million for the first quarter of 2012 from $7.1 million for the first quarter of 2011 and declined from $10.8 million for the fourth quarter of 2011. Deposit insurance assessments were flat at $5.4 million on a comparable quarter basis and decreased on a sequential quarter basis from $5.7 million for the fourth quarter of 2011.
Capital Management
BancorpSouth remains a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 13.13 percent at March 31, 2012 and total risk based capital of 14.39 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for "well capitalized" classification. The Company's equity capitalization is 100 percent common stock. BancorpSouth's ratio of shareholders' equity to assets increased to 10.46 percent at March 31, 2012, compared with 8.94 percent at March 31, 2011 and 9.72 percent at December 31, 2011. The ratio of tangible shareholders' equity to tangible assets increased to 8.49 percent at March 31, 2012, compared with 6.95 percent at March 31, 2011 and 7.67 percent at December 31, 2011.
On January 24, 2012, the Company completed an underwritten public offering of 10,952,381 shares of Company common stock at a public offering price of $10.50 per share. The gross proceeds from the offering, before expenses, were $109.3 million. Offering expenses were approximately $575,000. The proceeds from the offering have been and will be used by the Company for general corporate purposes, including to maintain certain capital levels and liquidity at the Company, potentially provide equity capital to BancorpSouth Bank, fund growth either organically or through acquisition of other financial institutions, insurance agencies, or other businesses that are closely aligned to the operations of the Company, and fund investments in its subsidiaries. The impact of this offering is reflected in the financial statements as of and for the quarter ended March 31, 2012.
Summary
Patterson concluded, "Our first quarter results are reflective of the significant improvement in asset quality achieved over the past several quarters as well as a continued focus on organic growth in our noninterest revenue lines of business. The results reported for these lines of business continue to support our belief that they differentiate our Company from many of our peers. Over the past several quarters, significant efforts have been focused on asset quality improvement. Although continuing to improve asset quality is certainly still the top priority, we recognize the importance of focusing on quality loan production and improving efficiency. While we are encouraged by recent economic trends, we remain cautious about the prospects of significant near-term growth given the competitive landscape and subdued loan demand.
"BancorpSouth is focused on customer service and relationships. Our Company has been built on providing a comprehensive range of financial products including a wide array of deposit and loan offerings, mortgage lending, insurance, trust, and many other products and services. We have continued to work to strengthen relationships with existing clients and to develop relationships with new customers. We believe that our company is positioned to achieve long-term growth and increased shareholder value as the economic cycle improves."
Conference Call
BancorpSouth will conduct a conference call to discuss its first quarter 2012 results on April 24, 2012, at 10:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com. A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.
Forward-Looking Statements
Certain statements contained in this news release may not be based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "may," "might," "will," "would," "could" or "intend." These forward-looking statements include, without limitation, statements relating to our use of proceeds from the public offering of our common stock, our differentiation from many of our peers because of our noninterest revenue lines of business, our ability to achieve long-term growth and increased shareholder value, and our use of non-GAAP financial measures.
We caution you not to place undue reliance on the forward-looking statements contained in this news release in that actual results could differ materially from those indicated in such forward-looking statements because of a variety of factors. These factors may include, but are not limited to, conditions in the financial markets and economic conditions generally, the ongoing debt crisis and the downgrade of the sovereign credit ratings for various nations, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company's other real estate owned, limitations on the Company's ability to declare and pay dividends, the impact of legal or administrative proceedings, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd Frank Act, and supervision of the Company's operations, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company's growth strategy, interruptions or breaches in the Company's information system security, the failure of certain third party vendors to perform, dilution caused by the Company's issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, the effectiveness of the Company's internal controls, other factors generally understood to affect the financial results of financial services companies and other factors detailed from time to time in the Company's press releases and filings with the Securities and Exchange Commission.
BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.3 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 290 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri and Tennessee, including an insurance location in Illinois.
BancorpSouth, Inc.
Selected Financial Data
-----------------------
Three Months Ended
March 31,
---------
2012 2011
---- ----
(Dollars in thousands, except per
share amounts)
Earnings Summary:
Net interest revenue $105,610 $109,437
Provision for credit losses 10,000 53,479
Noninterest revenue 72,360 68,311
Noninterest expense 135,680 130,010
------- -------
Income (loss) before income taxes 32,290 (5,741)
Income tax provision (benefit) 9,424 (5,247)
Net income (loss) $22,866 $(494)
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Earnings (loss) per share: Basic $0.25 $(0.01)
===== ======
Diluted $0.25 $(0.01)
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Balance sheet data at March 31:
Total assets $13,307,572 $13,547,238
Total earning assets 12,087,427 12,335,690
Loans and leases, net of unearned
income 8,737,923 9,213,836
Allowance for credit losses 181,777 198,333
Total deposits 11,082,322 11,464,114
Common shareholders' equity 1,392,199 1,211,061
Book value per share 14.74 14.51
Average balance sheet data:
Total assets $13,088,358 $13,539,763
Total earning assets 11,964,721 12,394,769
Loans and leases, net of unearned
interest 8,791,542 9,299,984
Total deposits 11,043,952 11,497,638
Common shareholders' equity 1,363,709 1,219,399
Non-performing assets at March 31:
Non-accrual loans and leases $253,227 $370,726
Loans and leases 90+ days past due,
still accruing 1,698 4,829
Restructured loans and leases, still
accruing 30,311 49,472
Other real estate owned 167,808 136,412
------- -------
Total non-performing assets 453,044 561,439
Net charge-offs as a percentage
of average loans (annualized) 1.06% 2.24%
Performance ratios (annualized):
Return on average assets 0.70% (0.01%)
Return on common equity 6.74% (0.16%)
Total shareholders' equity to total
assets 10.46% 8.94%
Tangible shareholders' equity to
tangible assets 8.49% 6.95%
Net interest margin 3.66% 3.69%
Average shares outstanding - basic 91,727,524 83,448,935
Average shares outstanding - diluted 91,769,863 83,448,935
Cash dividends per share $0.01 $0.11
Tier I capital 13.13% 10.65%
Total capital 14.39% 11.92%
Tier I leverage capital 9.85% 8.01%
BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
Mar-12 Dec-11 Sep-11 Jun-11 Mar-11
------ ------ ------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from
banks $184,441 $195,681 $161,876 $166,761 $146,989
Interest bearing
deposits with other
banks 665,675 303,663 338,250 304,344 102,312
Held-to-maturity
securities, at
amortized cost - - - - 1,667,203
Available-for-sale
securities, at fair
value 2,573,535 2,513,518 2,481,555 2,560,824 1,145,463
Federal funds sold and securities
purchased under
agreement to resell - - - - 150,000
Loans and leases 8,777,538 8,911,258 9,096,928 9,255,879 9,255,609
Less: Unearned income 39,615 40,947 41,023 41,326 41,773
Allowance for credit
losses 181,777 195,118 199,686 197,627 198,333
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Net loans and leases 8,556,146 8,675,193 8,856,219 9,016,926 9,015,503
Loans held for sale 110,294 83,458 100,687 70,519 56,876
Premises and
equipment, net 321,720 323,383 323,285 328,075 329,862
Accrued interest
receivable 50,008 51,266 53,338 55,525 61,105
Goodwill 271,297 271,297 271,297 271,297 271,297
Bank owned life
insurance 202,698 200,085 197,945 197,028 194,988
Other real estate
owned 167,808 173,805 162,686 151,204 136,412
Other assets 203,950 204,502 251,380 244,547 269,228
Total Assets $13,307,572 $12,995,851 $13,198,518 $13,367,050 $13,547,238
=========== =========== =========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest
bearing $2,260,012 $2,269,799 $2,198,535 $2,096,655 $2,027,990
Interest bearing 4,897,585 4,706,825 4,736,858 4,939,553 5,023,073
Savings 1,067,256 991,702 968,277 944,993 932,574
Other time 2,857,469 2,986,863 3,159,563 3,327,262 3,480,477
Total deposits 11,082,322 10,955,189 11,063,233 11,308,463 11,464,114
Federal funds purchased and
securities sold under agreement
to repurchase 401,089 373,933 449,501 426,097 421,782
Short-term Federal Home Loan Bank borrowings
and other short-term
borrowing 1,500 1,500 1,500 703 2,715
Accrued interest
payable 7,652 8,644 10,017 11,348 13,238
Junior subordinated
debt securities 160,312 160,312 160,312 160,312 160,312
Long-term Federal
Home Loan Bank
borrowings 33,500 33,500 33,500 35,000 110,000
Other liabilities 228,998 199,861 213,702 178,424 164,016
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Total Liabilities 11,915,373 11,732,939 11,931,765 12,120,347 12,336,177
Shareholders' Equity
--------------------
Common stock 236,090 208,709 208,722 208,722 208,704
Capital surplus 309,426 227,567 227,006 226,362 225,597
Accumulated other
comprehensive income
(loss) (4,136) (2,261) 14,595 6,289 (16,579)
Retained earnings 850,819 828,897 816,430 805,330 793,339
Total Shareholders'
Equity 1,392,199 1,262,912 1,266,753 1,246,703 1,211,061
--------- ---------
Total Liabilities &
Shareholders' Equity $13,307,572 $12,995,851 $13,198,518 $13,367,050 $13,547,238
=========== =========== =========== =========== ===========
BancorpSouth, Inc.
Consolidated Average Balance Sheets
(Unaudited)
Mar-12 Dec-11 Sep-11 Jun-11 Mar-11
------ ------ ------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from
banks $160,827 $151,004 $148,409 $151,194 $156,329
Interest bearing
deposits with other
banks 603,714 384,231 309,146 187,901 167,271
Held-to-maturity
securities, at
amortized cost - - - 1,097,562 1,653,284
Available-for-sale
securities, at fair
value 2,507,941 2,509,943 2,529,482 1,609,720 1,085,131
Federal funds sold and securities
purchased under
agreement to resell 274 2,174 - 38,736 150,000
Loans and leases 8,832,104 8,995,035 9,179,730 9,291,434 9,342,939
Less: Unearned income 40,562 40,806 41,316 42,307 42,954
Allowance for credit
losses 202,158 208,005 205,209 212,968 218,107
------- ------- -------
Net loans and leases 8,589,384 8,746,224 8,933,205 9,036,159 9,081,878
Loans held for sale 61,250 67,781 62,025 44,704 39,098
Premises and
equipment, net 322,641 322,544 326,800 328,829 330,920
Accrued interest
receivable 47,512 49,256 53,122 54,570 58,450
Goodwill 271,297 271,297 271,297 271,297 270,510
Bank owned life
insurance 11,204 14,558 14,642 14,189 13,217
Other real estate
owned 170,924 164,841 152,052 138,827 129,781
Other assets 341,390 362,926 374,475 391,872 403,894
Total Assets $13,088,358 $13,046,779 $13,174,655 $13,365,560 $13,539,763
=========== =========== =========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest
bearing $2,139,371 $2,248,904 $2,147,707 $2,018,197 $1,893,720
Interest bearing 4,960,060 4,714,059 4,789,462 4,977,764 5,153,063
Savings 1,027,611 975,892 957,871 941,169 897,312
Other time 2,916,910 3,078,376 3,246,332 3,418,741 3,553,543
Total deposits 11,043,952 11,017,231 11,141,372 11,355,871 11,497,638
Federal funds purchased and
securities sold under agreement
to repurchase 358,124 430,968 457,640 423,949 430,930
Short-term Federal Home Loan Bank borrowings
and other short-term
borrowing 1,500 1,500 486 1,641 2,719
Accrued interest
payable 9,392 10,617 12,108 13,558 14,873
Junior subordinated
debt securities 160,312 160,312 160,312 160,312 160,312
Long-term Federal
Home Loan Bank
borrowings 33,500 33,500 34,984 89,395 110,000
Other liabilities 117,869 123,746 115,938 98,553 103,892
------- ------- ------
Total Liabilities 11,724,649 11,777,874 11,922,840 12,143,279 12,320,364
Shareholders' Equity
--------------------
Common stock 231,276 208,722 208,722 208,715 208,704
Capital surplus 294,973 227,201 226,582 225,912 225,162
Accumulated other
comprehensive income
(loss) (2,269) 8,927 6,379 (10,040) (14,346)
Retained earnings 839,729 824,055 810,132 797,694 799,879
Total Shareholders'
Equity 1,363,709 1,268,905 1,251,815 1,222,281 1,219,399
--------- --------- ---------
Total Liabilities &
Shareholders' Equity $13,088,358 $13,046,779 $13,174,655 $13,365,560 $13,539,763
=========== =========== =========== =========== ===========
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended
-------------
Mar-12 Dec-11 Sep-11 Jun-11 Mar-11
------ ------ ------ ------ ------
INTEREST REVENUE:
Loans and leases $109,012 $112,566 $114,260 $116,892 $117,358
Deposits with other banks 401 252 203 124 122
Federal funds sold and securities purchased
under agreement to resell - 1 - 35 131
Held-to-maturity securities:
Taxable - - - 5,066 8,014
Tax-exempt - - - 2,291 3,347
Available-for-sale securities:
Taxable 11,162 11,781 13,172 10,451 8,585
Tax-exempt 4,256 4,158 4,130 1,871 824
Loans held for sale 544 635 632 505 447
--- --- --- --- ---
Total interest revenue 125,375 129,393 132,397 137,235 138,828
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INTEREST EXPENSE:
Interest bearing demand 4,449 4,737 5,324 6,039 6,546
Savings 714 747 828 810 826
Other time 11,291 13,104 14,837 16,285 17,483
Federal funds purchased and securities sold
under agreement to repurchase 63 76 95 135 152
FHLB borrowings 367 367 375 1,194 1,523
Junior subordinated debt 2,879 2,871 2,861 2,860 2,859
Other 2 2 2 - 2
--- --- --- --- ---
Total interest expense 19,765 21,904 24,322 27,323 29,391
------ ------ ------ ------ ------
Net interest revenue 105,610 107,489 108,075 109,912 109,437
Provision for credit losses 10,000 19,250 25,112 32,240 53,479
------ ------ ------ ------ ------
Net interest revenue, after provision for
credit losses 95,610 88,239 82,963 77,672 55,958
------ ------ ------ ------ ------
NONINTEREST REVENUE:
Mortgage lending 15,142 8,928 (1,443) 2,003 7,581
Credit card, debit card and merchant fees 7,523 7,783 12,981 11,263 10,346
Service charges 15,116 17,412 17,334 16,556 15,368
Trust income 2,282 3,348 2,854 2,850 3,134
Security gains, net 74 18 2,047 10,045 17
Insurance commissions 23,153 19,416 22,012 22,941 22,549
Other 9,070 8,430 6,270 9,486 9,316
----- ----- ----- ----- -----
Total noninterest revenue 72,360 65,335 62,055 75,144 68,311
------ ------ ------ ------ ------
NONINTEREST EXPENSE:
Salaries and employee benefits 74,931 70,512 71,851 70,142 70,375
Occupancy, net of rental income 10,066 10,315 11,144 10,232 10,671
Equipment 5,333 5,108 5,346 5,595 5,658
Deposit insurance assessments 5,383 5,674 3,781 6,436 5,425
Prepayment penalty on FHLB borrowings - - - 9,778 -
Other 39,967 44,247 38,576 34,886 37,881
------ ------ ------ ------
Total noninterest expenses 135,680 135,856 130,698 137,069 130,010
------- ------- ------- ------- -------
Income (loss) before income taxes 32,290 17,718 14,320 15,747 (5,741)
Income tax expense (benefit) 9,424 4,415 2,386 2,921 (5,247)
----- ----- -----
Net income (loss) $22,866 $13,303 $11,934 $12,826 $(494)
======= ======= ======= ======= =====
Net income (loss) per share: Basic $0.25 $0.16 $0.14 $0.15 $(0.01)
===== ===== ===== ===== ======
Diluted $0.25 $0.16 $0.14 $0.15 $(0.01)
===== ===== ===== ===== ======
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Mar-12 Dec-11 Sep-11 Jun-11 Mar-11
------ ------ ------ ------ ------
LOAN AND LEASE
PORTFOLIO:
Commercial and
industrial $1,441,727 $1,473,728 $1,503,391 $1,526,686 $1,484,223
Real estate
Consumer mortgages 1,937,997 1,945,190 1,966,124 1,971,499 1,958,367
Home equity 501,331 514,362 523,030 531,787 531,406
Agricultural 256,683 239,487 249,715 255,310 250,393
Commercial and
industrial-owner
occupied 1,287,542 1,301,575 1,329,644 1,366,734 1,316,824
Construction,
acquisition and
development 858,110 908,362 976,694 1,060,675 1,117,335
Commercial real
estate 1,742,001 1,754,022 1,772,003 1,764,648 1,831,226
Credit cards 100,527 106,281 103,232 101,955 100,732
All other 612,005 627,304 632,072 635,259 623,330
------- ------- ------- ------- -------
Total loans $8,737,923 $8,870,311 $9,055,905 $9,214,553 $9,213,836
---------- ---------- ---------- ---------- ----------
ALLOWANCE FOR
CREDIT LOSSES:
Balance, beginning
of period $195,118 $199,686 $197,627 $198,333 $196,913
Loans and leases
charged off:
Commercial and
industrial (4,272) (1,677) (1,295) (5,556) (8,809)
Real estate
Consumer mortgages (4,216) (2,953) (2,344) (1,629) (3,260)
Home equity (851) (1,667) (1,712) (1,391) (1,082)
Agricultural (96) (110) (2,345) (373) (592)
Commercial and
industrial-owner
occupied (3,868) (1,136) (4,222) (3,228) (1,716)
Construction,
acquisition and
development (11,394) (10,539) (7,697) (16,783) (32,343)
Commercial real
estate (2,809) (6,858) (4,467) (1,597) (4,514)
Credit cards (562) (706) (760) (725) (881)
All other (758) (794) (770) (4,971) (553)
Total loans charged
off (28,826) (26,440) (25,612) (36,253) (53,750)
------- ------- ------- ------- -------
Recoveries:
Commercial and
industrial 1,542 446 348 589 184
Real estate
Consumer mortgages 323 263 485 220 143
Home equity 315 43 51 46 45
Agricultural 10 76 - 45 2
Commercial and
industrial-owner
occupied 351 100 99 21 173
Construction,
acquisition and
development 2,155 971 923 1,493 564
Commercial real
estate 383 340 300 392 13
Credit cards 118 168 141 239 255
All other 288 215 212 262 312
Total recoveries 5,485 2,622 2,559 3,307 1,691
----- ----- ----- ----- -----
Net charge-offs (23,341) (23,818) (23,053) (32,946) (52,059)
Provision charged
to operating
expense 10,000 19,250 25,112 32,240 53,479
Balance, end of
period $181,777 $195,118 $199,686 $197,627 $198,333
-------- -------- -------- -------- --------
Average loans for
period $8,791,542 $8,954,229 $9,138,414 $9,249,127 $9,300,029
========== ========== ========== ========== ==========
Ratio:
Net charge-offs to
average loans
(annualized) 1.06% 1.06% 1.01% 1.42% 2.24%
==== ==== ==== ==== ====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Mar-12 Dec-11 Sep-11 Jun-11 Mar-11
------ ------ ------ ------ ------
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and
industrial $11,025 $12,260 $11,122 $9,337 $14,655
Real estate
Consumer mortgages 46,562 47,878 44,100 34,174 36,025
Home equity 2,687 2,036 2,634 1,232 1,543
Agricultural 4,254 4,179 6,254 8,526 7,597
Commercial and
industrial-owner
occupied 32,842 33,112 26,977 26,387 24,638
Construction,
acquisition and
development 115,649 133,110 171,566 200,434 224,847
Commercial real
estate 35,715 40,616 49,500 48,571 58,945
Credit cards 509 594 551 546 617
All other 3,984 3,013 1,775 1,869 1,859
----- ----- ----- ----- -----
Total nonaccrual
loans and leases $253,227 $276,798 $314,479 $331,076 $370,726
-------- -------- -------- -------- --------
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and
industrial $10 $12 $1,846 $118 $501
Real estate
Consumer mortgages 1,314 2,974 4,136 2,482 3,152
Home equity - - 134 242 139
Agricultural - - 131 - 7
Commercial and
industrial-owner
occupied - - 42 - 255
Construction,
acquisition and
development - - 290 432 19
Commercial real
estate - - 106 19 7
Credit cards 228 299 257 299 240
All other 146 149 412 388 509
Total loans and
leases 90+ days
past due, still
accruing 1,698 3,434 7,354 3,980 4,829
----- ----- ----- ----- -----
Restructured Loans
and Leases, Still
Accruing 30,311 42,018 40,966 44,786 49,472
Total non-
performing loans
and leases 285,236 322,250 362,799 379,842 425,027
------- ------- ------- ------- -------
OTHER REAL ESTATE
OWNED: 167,808 173,805 162,686 151,204 136,412
------- ------- ------- ------- -------
Total Non-
performing Assets $453,044 $496,055 $525,485 $531,046 $561,439
======== ======== ======== ======== ========
Additions to
Nonaccrual Loans
and Leases During
the Quarter $40,392 $39,474 $60,799 $50,427 $111,241
======= ======= ======= ======= ========
Loans and Leases 30-89 Days Past Due, Still
Accruing:
Commercial and
industrial $4,809 $8,065 $9,759 $7,903 $8,407
Real estate
Consumer mortgages 10,736 15,864 20,144 18,621 17,136
Home equity 2,248 2,037 2,066 2,916 2,492
Agricultural 663 339 1,485 2,901 818
Commercial and
industrial-owner
occupied 3,332 2,154 7,348 2,786 4,369
Construction,
acquisition and
development 2,431 2,714 4,469 4,939 8,047
Commercial real
estate 2,104 3,292 5,136 4,091 7,090
Credit cards 686 802 851 785 969
All other 1,983 2,280 2,832 3,005 2,192
----- ----- ----- ----- -----
Total Loans and
Leases 30-89 days
past due, still
accruing $28,992 $37,547 $54,090 $47,947 $51,520
======= ======= ======= ======= =======
Credit Quality Ratios:
Provision for credit
losses to average
loans and leases
(annualized) 0.45% 0.86% 1.10% 1.39% 2.30%
Allowance for credit
losses to net loans
and leases 2.08% 2.20% 2.21% 2.14% 2.15%
Allowance for credit
losses to non-
performing assets 40.12% 39.33% 38.00% 37.21% 35.33%
Allowance for credit
losses to non-
performing loans
and leases 63.73% 60.55% 55.04% 52.03% 46.66%
Non-performing
loans and leases to
net loans and
leases 3.26% 3.63% 4.01% 4.12% 4.61%
Non-performing
assets to net loans
and leases 5.18% 5.59% 5.80% 5.76% 6.09%
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Mar-12 Dec-11 Sep-11 Jun-11 Mar-11
------ ------ ------ ------ ------
REAL ESTATE CONSTRUCTION,
ACQUISITION
AND DEVELOPMENT ("CAD")
PORTFOLIO:
Outstanding Balance
Multi-family construction $4,683 $2,138 $10,349 $19,116 $21,051
One-to-four family
construction 159,281 169,827 181,445 198,809 212,435
Recreation and all other
loans 63,407 67,235 61,084 66,366 63,686
Commercial construction 122,173 130,124 140,570 160,834 155,402
Commercial acquisition and
development 191,783 197,044 206,516 222,460 244,950
Residential acquisition and
development 316,783 341,994 376,730 393,090 419,811
------- ------- ------- ------- -------
Total outstanding balance $858,110 $908,362 $976,694 $1,060,675 $1,117,335
======== ======== ======== ========== ==========
Nonaccrual CAD Loans
Multi-family construction $ - $1,067 $ - $9,174 $8,352
One-to-four family
construction 11,953 14,690 17,937 24,537 33,570
Recreation and all other
loans 386 436 712 774 708
Commercial construction 3,702 5,235 10,159 16,618 20,889
Commercial acquisition and
development 23,464 23,968 31,862 37,207 47,200
Residential acquisition and
development 76,144 87,714 110,896 112,124 114,128
------ ------ ------- ------- -------
Total nonaccrual CAD loans 115,649 133,110 171,566 200,434 224,847
------- ------- ------- ------- -------
CAD Loans 90+ Days Past
Due, Still Accruing:
Multi-family construction - - - - -
One-to-four family
construction - - 211 - -
Recreation and all other
loans - - - 2 2
Commercial construction - - - - -
Commercial acquisition and
development - - - - -
Residential acquisition and
development - - 79 430 17
--- --- --- ---
Total CAD loans 90+ days
past due, still accruing - - 290 432 19
--- --- --- --- ---
Restructured CAD Loans,
Still Accruing
Multi-family construction - - - - -
One-to-four family
construction 799 318 321 1,697 113
Recreation and all other
loans 847 852 24 24 -
Commercial construction 977 - - - -
Commercial acquisition and
development 2,975 433 1,415 1,415 834
Residential acquisition and
development 106 446 410 2,274 3,408
--- --- --- ----- -----
Total restructured CAD
loans, still accruing 5,704 2,049 2,170 5,410 4,355
----- ----- ----- ----- -----
Total Non-performing CAD
loans $121,353 $135,159 $174,026 $206,276 $229,221
======== ======== ======== ======== ========
CAD NPL as a % of
Outstanding CAD Balance
Multi-family construction - 49.9% - 48.0% 39.7%
One-to-four family
construction 8.0% 8.8% 10.2% 13.2% 15.9%
Recreation and all other
loans 1.9% 1.9% 1.2% 1.2% 1.1%
Commercial construction 3.8% 4.0% 7.2% 10.3% 13.4%
Commercial acquisition and
development 13.8% 12.4% 16.1% 17.4% 19.6%
Residential acquisition and
development 24.1% 25.8% 29.6% 29.2% 28.0%
Total CAD NPL as a % of
outstanding CAD balance 14.1% 14.9% 17.8% 19.4% 20.5%
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
March 31, 2012
--------------
Special
Pass Mention Substandard Doubtful Loss Impaired Total
---- ------- ----------- -------- ---- -------- -----
LOAN PORTFOLIO BY
INTERNALLY
ASSIGNED GRADE:
Commercial and
industrial $1,376,983 $6,449 $47,783 $4,159 $247 $6,106 $1,441,727
Real estate
Consumer mortgages 1,729,187 23,918 151,679 4,351 446 28,416 1,937,997
Home equity 476,300 2,793 19,626 754 275 1,583 501,331
Agricultural 229,865 1,936 21,763 20 - 3,099 256,683
Commercial and
industrial-owner
occupied 1,151,368 24,662 83,041 230 89 28,152 1,287,542
Construction,
acquisition and
development 601,396 22,939 121,556 956 - 111,263 858,110
Commercial real
estate 1,491,021 47,535 171,891 72 - 31,482 1,742,001
Credit cards 100,527 - - - - - 100,527
All other 575,399 16,685 18,222 678 10 1,011 612,005
Total loans $7,732,046 $146,917 $635,561 $11,220 $1,067 $211,112 $8,737,923
========== ======== ======== ======= ====== ======== ==========
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
As of
-----
Mar-12 Dec-11 Sep-11 Jun-11 Mar-11
------ ------ ------ ------ ------
Unpaid principal balance of impaired loans $266,483 $287,099 $342,839 $374,760 $423,497
Cumulative charge-offs on impaired loans 55,371 52,176 62,950 71,103 84,676
------ ------ ------ ------ ------
Impaired nonaccrual loan and lease outstanding balance 211,112 234,923 279,889 303,657 338,821
Other non-accrual loans and leases not impaired 42,115 41,875 34,590 27,419 31,905
------ ------ ------ ------ ------
Total non-accrual loans and leases $253,227 $276,798 $314,479 $331,076 $370,726
======== ======== ======== ======== ========
Allowance for impaired loans 25,546 39,708 38,657 46,810 49,419
------ ------ ------ ------ ------
Nonaccrual loans and leases, net of specific reserves $227,681 $237,090 $275,822 $284,266 $321,307
======== ======== ======== ======== ========
Loans and leases 90+ days past due, still accruing $1,698 $3,434 $7,354 $3,980 $4,829
Restructured loans and leases, still accruing 30,311 42,018 40,966 44,786 49,472
------ ------ ------ ------ ------
Total non-performing loans and leases $285,236 $322,250 $362,799 $379,842 $425,027
======== ======== ======== ======== ========
Allowance for impaired loans $25,546 $39,708 $38,657 $46,810 $49,419
Allowance for all other loans and leases 156,231 155,410 161,029 150,817 148,914
------- ------- ------- ------- -------
Total allowance for credit losses $181,777 $195,118 $199,686 $197,627 $198,333
-------- -------- -------- -------- --------
Outstanding balance of impaired loans $211,112 $234,923 $279,889 $303,657 $338,821
Allowance for impaired loans 25,546 39,708 38,657 46,810 49,419
------ ------ ------ ------ ------
Net book value of impaired loans $185,566 $195,215 $241,232 $256,847 $289,402
======== ======== ======== ======== ========
Net book value of impaired loans as a %
of unpaid principal balance 70% 68% 70% 69% 68%
Coverage of other non-accrual loans and leases not impaired by
the allowance for all other loans and leases 371% 371% 466% 550% 467%
Coverage of non-performing loans and leases not impaired
by the allowance for all other loans and leases 211% 178% 194% 198% 173%
BancorpSouth, Inc.
Geographical Information
(Dollars in thousands)
(Unaudited)
March 31, 2012
--------------
Alabama Greater
and Florida Memphis Texas and
Panhandle Arkansas Mississippi Missouri Area Tennessee Louisiana Other Total
--------- -------- ----------- -------- ---- --------- --------- ----- -----
LOAN AND LEASE PORTFOLIO:
Commercial and industrial $56,958 $165,503 $333,153 $51,881 $16,991 $78,288 $249,569 $489,384 $1,441,727
Real estate
Consumer mortgages 108,285 270,476 757,160 55,566 82,585 166,615 444,094 53,216 1,937,997
Home equity 57,995 39,922 170,628 24,849 67,484 75,894 62,253 2,306 501,331
Agricultural 5,775 83,839 72,900 3,937 9,262 13,199 62,470 5,301 256,683
Commercial and industrial-owner occupied 114,985 166,065 453,201 68,002 95,874 95,133 244,967 49,315 1,287,542
Construction, acquisition and development 104,362 69,566 244,459 48,115 95,198 92,608 185,781 18,021 858,110
Commercial real estate 203,365 342,591 342,816 219,999 115,186 101,142 362,700 54,202 1,742,001
Credit cards - - - - - - - 100,527 100,527
All other 31,347 88,646 195,309 5,662 57,105 47,204 95,521 91,211 612,005
Total loans $683,072 $1,226,608 $2,569,626 $478,011 $539,685 $670,083 $1,707,355 $863,483 $8,737,923
======== ========== ========== ======== ======== ======== ========== ======== ==========
CAD PORTFOLIO:
Multi-family construction $2,634 $ - $11 $ - $ - $675 $1,363 $ - $4,683
One-to-four family construction 26,983 12,703 41,728 6,787 9,580 28,030 32,890 580 159,281
Recreation and all other loans 1,735 8,937 31,632 562 3,174 845 16,522 - 63,407
Commercial construction 14,363 5,930 36,794 2,619 9,093 19,605 30,253 3,516 122,173
Commercial acquisition and development 13,905 16,392 52,641 15,018 32,228 16,719 38,903 5,977 191,783
Residential acquisition and development 44,742 25,604 81,653 23,129 41,123 26,734 65,850 7,948 316,783
Total CAD loans $104,362 $69,566 $244,459 $48,115 $95,198 $92,608 $185,781 $18,021 $858,110
======== ======= ======== ======= ======= ======= ======== ======= ========
NON-PERFORMING LOANS AND LEASES:
Commercial and industrial $2,455 $2,175 $789 $3,414 $7 $215 $2,756 $669 $12,480
Real estate
Consumer mortgages 5,655 4,716 12,654 5,172 3,074 5,820 7,171 7,963 52,225
Home equity 952 26 406 - 487 501 313 2 2,687
Agricultural 96 214 1,007 1,388 1,296 252 - 1 4,254
Commercial and industrial-owner occupied 8,923 6,164 7,344 1,567 4,402 5,508 3,183 2 37,093
Construction, acquisition and development 20,596 5,702 7,932 13,813 24,274 15,866 31,272 1,898 121,353
Commercial real estate 10,500 1,813 8,113 12,649 3,190 5,116 3,500 1,963 46,844
Credit cards - - - - - - - 3,060 3,060
All other 325 2,204 1,053 118 31 1,157 198 154 5,240
Total loans $49,502 $23,014 $39,298 $38,121 $36,761 $34,435 $48,393 $15,712 $285,236
======= ======= ======= ======= ======= ======= ======= ======= ========
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
March 31, 2012
--------------
Alabama Greater
and Florida Memphis Texas and
Panhandle Arkansas Mississippi Missouri Area Tennessee Louisiana Other Total
--------- -------- ----------- -------- ---- --------- --------- ----- -----
OTHER REAL ESTATE OWNED:
Commercial and industrial $423 $16 $ - $ - $821 $ - $ - $ - $1,260
Real estate -
Consumer mortgages 3,505 615 2,970 - 4,713 3,523 111 3,377 18,814
Home equity - 26 22 - 586 141 - - 775
Agricultural 902 - 730 - 1,164 2,371 - - 5,167
Commercial and industrial-owner occupied 1,564 656 2,583 2,113 1,829 164 174 291 9,374
Construction, acquisition and development 16,179 1,766 25,510 1,965 46,007 19,458 2,630 - 113,515
Commercial real estate 3,557 1,744 3,241 307 7,318 - 233 579 16,979
All other 209 83 990 117 437 - 55 33 1,924
Total loans $26,339 $4,906 $36,046 $4,502 $62,875 $25,657 $3,203 $4,280 $167,808
======= ====== ======= ====== ======= ======= ====== ====== ========
Quarter Ended
-------------
Mar-12 Dec-11 Sep-11 Jun-11 Mar-11
------ ------ ------ ------ ------
OTHER REAL ESTATE OWNED:
Balance, beginning of period $173,805 $162,686 $151,204 $136,412 $133,412
Additions to foreclosed properties
New foreclosed property 10,766 36,507 29,063 38,199 21,464
Reductions in foreclosed properties
Sales (11,771) (16,688) (13,136) (21,135) (13,528)
Writedowns (4,992) (8,700) (4,445) (2,272) (4,936)
Balance, end of period $167,808 $173,805 $162,686 $151,204 $136,412
======== ======== ======== ======== ========
FORECLOSED PROPERTY EXPENSE
Loss (gain) on sale of other real estate owned $770 $711 $16 $(140) $492
Writedown of other real estate owned 4,992 8,700 4,445 2,272 4,936
Other foreclosed property expense 2,648 1,422 1,655 1,633 1,654
Total foreclosed property expense $8,410 $10,833 $6,116 $3,765 $7,082
====== ======= ====== ====== ======
BancorpSouth, Inc.
Noninterest Revenue and Expense
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Mar-12 Dec-11 Sep-11 Jun-11 Mar-11
------ ------ ------ ------ ------
NONINTEREST REVENUE:
Mortgage lending $15,142 $8,928 $(1,443) $2,003 $7,581
Credit card, debit card and
merchant fees 7,523 7,783 12,981 11,263 10,346
Service charges 15,116 17,412 17,334 16,556 15,368
Trust income 2,282 3,348 2,854 2,850 3,134
Securities gains, net 74 18 2,047 10,045 17
Insurance commissions 23,153 19,416 22,012 22,941 22,549
Annuity fees 642 382 552 1,094 1,296
Brokerage commissions and fees 1,438 1,215 1,627 1,437 1,638
Bank-owned life insurance 2,613 2,007 1,734 2,223 1,699
Other miscellaneous income 4,377 4,826 2,357 4,732 4,683
Total noninterest revenue $72,360 $65,335 $62,055 $75,144 $68,311
======= ======= ======= ======= =======
NONINTEREST EXPENSE:
Salaries and employee benefits $74,931 $70,512 $71,851 $70,142 $70,375
Occupancy, net of rental income 10,066 10,315 11,144 10,232 10,671
Equipment 5,333 5,108 5,346 5,595 5,658
Deposit insurance assessments 5,383 5,674 3,781 6,436 5,425
Prepayment penalty on FHLB
borrowings - - - 9,778 -
Advertising 841 1,778 1,140 1,291 889
Foreclosed property expense 8,409 10,833 6,116 3,765 7,082
Telecommunications 2,206 2,110 2,097 2,036 2,143
Public relations 1,466 1,244 1,415 1,554 1,514
Data processing 2,764 2,398 2,614 2,365 2,301
Computer software 1,803 1,892 1,863 1,899 1,848
Amortization of intangibles 763 813 823 833 854
Legal 2,216 3,947 1,467 1,158 2,598
Postage and shipping 1,255 1,163 1,182 1,171 1,297
Other miscellaneous expense 18,244 18,069 19,859 18,814 17,355
Total noninterest expense $135,680 $135,856 $130,698 $137,069 $130,010
======== ======== ======== ======== ========
INSURANCE COMMISSIONS:
Property and casualty
commissions $14,430 $14,033 $16,226 $16,527 $13,683
Life and health commissions 4,724 4,024 4,359 4,301 4,477
Risk management income 655 597 703 596 713
Other 3,344 762 724 1,517 3,676
Total insurance commissions $23,153 $19,416 $22,012 $22,941 $22,549
======= ======= ======= ======= =======
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Mar-12 Dec-11 Sep-11 Jun-11 Mar-11
------ ------ ------ ------ ------
MORTGAGE SERVICING RIGHTS:
Fair value, beginning of
period $30,174 $29,159 $39,455 $42,306 $38,642
Additions to mortgage
servicing rights:
Originations of servicing
assets 3,525 3,754 3,127 2,380 2,431
Changes in fair value:
Due to payoffs/paydowns (1,726) (1,745) (1,745) (1,390) (1,300)
Due to change in valuation
inputs or
assumptions used in the
valuation model 3,697 (991) (11,676) (3,839) 2,540
Other changes in fair value (2) (3) (2) (2) (7)
Fair value, end of period $35,668 $30,174 $29,159 $39,455 $42,306
======= ======= ======= ======= =======
MORTGAGE LENDING REVENUE:
Production revenue:
Origination $9,720 $8,308 $8,688 $4,066 $3,224
Servicing 3,451 3,356 3,290 3,166 3,117
Payoffs/Paydowns (1,726) (1,745) (1,745) (1,390) (1,300)
------ ------ ------ ------ ------
Total production revenue 11,445 9,919 10,233 5,842 5,041
Market value adjustment 3,697 (991) (11,676) (3,839) 2,540
Total mortgage lending revenue
(loss) $15,142 $8,928 $(1,443) $2,003 $7,581
======= ====== ======= ====== ======
HELD-TO-MATURITY SECURITIES,
at amortized cost
U.S. Government agencies $ - $ - $ - $ - $1,278,185
Obligations of states and
political subdivisions - - - - 389,018
Total held-to-maturity
securities $ - $ - $ - $ - $1,667,203
=============== ================== ================== =============== ==========
AVAILABLE-FOR-SALE
SECURITIES, at fair value
U.S. Government agencies $1,578,441 $1,501,243 $1,497,456 $1,599,231 $459,763
Government agency issued
residential
mortgage-back securities 385,146 404,610 420,689 430,402 529,302
Government agency issued
commercial
mortgage-back securities 31,647 34,599 34,475 31,627 30,938
Obligations of states and
political subdivisions 568,642 563,520 519,431 486,653 111,380
Other 9,659 9,546 9,504 12,911 14,080
Total available-for-sale
securities $2,573,535 $2,513,518 $2,481,555 $2,560,824 $1,145,463
========== ========== ========== ========== ==========
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
March 31, 2012
--------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $8,852,792 $110,407 5.02%
Available-for-sale securities:
Taxable 2,058,859 11,272 2.20%
Tax-exempt 449,082 6,547 5.86%
Short-term investments 603,988 401 0.27%
------- ---
Total interest earning
assets and revenue 11,964,721 128,627 4.32%
Other assets 1,325,795
Less: allowance for credit
losses (202,158)
Total $13,088,358
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,960,060 $4,449 0.36%
Savings 1,027,611 714 0.28%
Other time 2,916,910 11,291 1.56%
Short-term borrowings 359,690 83 0.09%
Junior subordinated debt 160,312 2,879 7.22%
Long-term debt 33,500 349 4.19%
------ ---
Total interest bearing
liabilities and expense 9,458,083 19,765 0.84%
Demand deposits -
noninterest bearing 2,139,371
Other liabilities 127,195
Total liabilities 11,724,649
Shareholders' equity 1,363,709
Total $13,088,358
===========
Net interest revenue $108,862
========
Net interest margin 3.66%
Net interest rate spread 3.48%
Interest bearing liabilities to
interest earning assets 79.05%
Net interest tax equivalent adjustment $3,252
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
December 31, 2011
-----------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,022,010 $114,094 5.02%
Available-for-sale securities:
Taxable 2,083,983 11,891 2.26%
Tax-exempt 425,960 6,396 5.96%
Short-term investments 386,405 253 0.26%
------- ---
Total interest earning
assets and revenue 11,918,358 132,634 4.42%
Other assets 1,336,426
Less: allowance for credit
losses (208,005)
Total $13,046,779
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,714,059 $4,737 0.40%
Savings 975,892 746 0.30%
Other time 3,078,376 13,104 1.69%
Short-term borrowings 432,539 95 0.09%
Junior subordinated debt 160,312 2,871 7.11%
Long-term debt 33,500 350 4.15%
------ ---
Total interest bearing
liabilities and expense 9,394,678 21,903 0.92%
Demand deposits -
noninterest bearing 2,248,904
Other liabilities 134,292
Total liabilities 11,777,874
Shareholders' equity 1,268,905
Total $13,046,779
===========
Net interest revenue $110,731
========
Net interest margin 3.69%
Net interest rate spread 3.49%
Interest bearing liabilities to
interest earning assets 78.83%
Net interest tax equivalent adjustment $3,241
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
September 30, 2011
------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,200,439 $115,605 4.99%
Available-for-sale securities:
Taxable 2,123,772 13,283 2.48%
Tax-exempt 405,710 6,354 6.21%
Short-term investments 309,146 203 0.26%
------- ---
Total interest earning
assets and revenue 12,039,067 135,445 4.46%
Other assets 1,340,797
Less: allowance for credit
losses (205,209)
Total $13,174,655
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,789,462 $5,323 0.44%
Savings 957,871 828 0.34%
Other time 3,246,332 14,837 1.81%
Short-term borrowings 458,199 112 0.10%
Junior subordinated debt 160,312 2,861 7.08%
Long-term debt 34,984 361 4.09%
------ ---
Total interest bearing
liabilities and expense 9,647,160 24,322 1.00%
Demand deposits -
noninterest bearing 2,147,707
Other liabilities 127,973
Total liabilities 11,922,840
Shareholders' equity 1,251,815
Total $13,174,655
===========
Net interest revenue $111,123
========
Net interest margin 3.66%
Net interest rate spread 3.46%
Interest bearing liabilities to
interest earning assets 80.13%
Net interest tax equivalent adjustment $3,048
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2011
-------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,293,831 $118,284 5.10%
Held-to-maturity securities:
Taxable 887,767 5,143 2.32%
Tax-exempt 209,795 3,523 6.74%
Available-for-sale securities:
Taxable 1,432,822 10,485 2.94%
Tax-exempt 176,898 2,879 6.53%
Short-term investments 226,638 160 0.28%
------- ---
Total interest earning
assets and revenue 12,227,751 140,474 4.61%
Other assets 1,350,777
Less: allowance for credit
losses (212,968)
Total $13,365,560
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,977,764 $6,040 0.49%
Savings 941,169 810 0.35%
Other time 3,418,741 16,284 1.91%
Short-term borrowings 425,666 155 0.15%
Junior subordinated debt 160,312 2,860 7.16%
Long-term debt 89,395 1,174 5.27%
------ -----
Total interest bearing
liabilities and expense 10,013,047 27,323 1.09%
Demand deposits -
noninterest bearing 2,018,197
Other liabilities 112,035
Total liabilities 12,143,279
Shareholders' equity 1,222,281
Total $13,365,560
===========
Net interest revenue $113,151
========
Net interest margin 3.71%
Net interest rate spread 3.51%
Interest bearing liabilities to
interest earning assets 81.89%
Net interest tax equivalent adjustment $3,239
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
March 31, 2011
--------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,339,083 $118,648 5.15%
Held-to-maturity securities:
Taxable 1,322,668 8,124 2.49%
Tax-exempt 330,616 5,150 6.32%
Available-for-sale securities:
Taxable 1,014,404 8,585 3.43%
Tax-exempt 70,727 1,267 7.27%
Short-term investments 317,271 253 0.32%
------- ---
Total interest earning
assets and revenue 12,394,769 142,026 4.65%
Other assets 1,363,101
Less: allowance for credit
losses (218,107)
Total $13,539,763
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $5,153,063 $6,546 0.52%
Savings 897,312 826 0.37%
Other time 3,553,543 17,483 2.00%
Short-term borrowings 433,743 193 0.18%
Junior subordinated debt 160,312 2,859 7.23%
Long-term debt 110,000 1,484 5.47%
------- -----
Total interest bearing
liabilities and expense 10,307,973 29,391 1.16%
Demand deposits -
noninterest bearing 1,893,720
Other liabilities 118,671
Total liabilities 12,320,364
Shareholders' equity 1,219,399
Total $13,539,763
===========
Net interest revenue $112,635
========
Net interest margin 3.69%
Net interest rate spread 3.49%
Interest bearing liabilities to
interest earning assets 83.16%
Net interest tax equivalent adjustment $3,199
BancorpSouth, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in thousands)
(Unaudited)
Reconciliation of Tangible Assets and Tangible Shareholders' Equity to
Total Assets and Total Shareholders' Equity (a):
March 31, December 31,
--------- ------------
2012 2011 2011
---- ---- ----
Tangible assets
Total assets $13,307,572 $13,547,238 $12,995,851
Less: Goodwill 271,297 271,297 271,297
Other identifiable
intangible assets 15,850 18,844 16,613
Total tangible assets $13,020,425 $13,257,097 $12,707,941
Tangible shareholders' equity
Total shareholders' equity $1,392,199 $1,211,061 $1,262,912
Less: Goodwill 271,297 271,297 271,297
Other identifiable
intangible assets 15,850 18,844 16,613
Total tangible shareholders' equity $1,105,052 $920,920 $975,002
Tangible shareholders' equity to tangible
assets 8.49% 6.95% 7.67%
(a) BancorpSouth, Inc. utilizes the ratio of tangible
shareholders' equity to tangible assets when
evaluating the performance of the Company. Tangible
shareholders' equity is defined by the
Company as total shareholders' equity less goodwill and other
identifiable intangible assets.
Tangible assets are defined by the Company as total assets
less goodwill and other identifiable
intangible assets. Management believes the ratio of tangible
shareholders' equity to tangible assets
is important to investors who are interested in evaluating the
adequacy of the Company's capital levels.
SOURCE BancorpSouth, Inc.
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