BancorpSouth Announces Fourth Quarter 2013 Earnings of $27.7 Million or $0.29 per Diluted Share

PR Newswire

TUPELO, Miss., Jan. 22, 2014 /PRNewswire/ -- BancorpSouth, Inc. (BXS) today announced financial results for the quarter and year ended December 31, 2013.

          Highlights for the fourth quarter of 2013 included:

  • Net income of $27.7 million or $0.29 per diluted share.
  • Acquired Houston, Texas based Gem Insurance Agencies, LP ("GEM"), which is expected to produce annual insurance commission revenues of approximately $9 million.
  • Generated net loan growth of $184.9 million, or 8.4 percent annualized, which represents the third consecutive quarter of net loan growth.
  • The net interest margin increased to 3.52 percent for the fourth quarter of 2013 from 3.45 percent for the third quarter of 2013, benefitting from continued reduced funding costs as well as net loan growth.
  • Non-performing loans and leases ("NPLs") declined $23.9 million, or 16.6 percent, compared to the third quarter of 2013, while non-performing assets ("NPAs") decreased $31.4 million, or 14.2 percent, over the same period.

The Company reported net income of $27.7 million, or $0.29 per diluted share, for the fourth quarter of 2013 compared with net income of $17.0 million, or $0.18 per diluted share, for the fourth quarter of 2012 and net income of $24.9 million, or $0.26 per diluted share, for the third quarter of 2013.  Additionally, the Company reported total net income of $94.1 million, or $0.99 per diluted share, for the year ended December 31, 2013 compared to $84.3 million, or $0.90 per diluted share, for the year ended December 31, 2012.   

"Our results for the fourth quarter are reflective of the commitment that we have made to grow our Company," remarked Dan Rollins, Chief Executive Officer.  "We are pleased to report net loan growth of almost $185 million, or 8.4 percent on an annualized basis.  This accomplishment is attributable to the hard work and efforts of our lending team.  While we have continued to produce quality credits throughout the cycle, these efforts are becoming more visible as the headwind caused by problem asset runoff continues to subside.  These efforts contributed to improvement in our net interest margin for the quarter, which improved to 3.52 percent from 3.45 percent for the third quarter, as well as growth in net interest income."   

"We are also excited about the opportunity that the transaction with GEM provides for us to be able to continue to expand our insurance operations, particularly in a high-growth market like Houston, Texas," commented Rollins.  "GEM produces insurance commission revenues of approximately $9 million annually and, combined with our legacy Houston operation, should provide a solid foundation for us to be able to continue to grow in that market."    

Rollins added, "Our financial performance continues to benefit from consistent credit quality improvement."  Earnings for the quarter reflected no recorded provision for credit losses, which was a decrease from $6.0 million for the fourth quarter of 2012 and $0.5 million for the third quarter of 2013.  NPLs declined $23.9 million, or 16.6 percent, during the fourth quarter of 2013 to $120.4 million at December 31, 2013 compared with $144.3 million at September 30, 2013 and declined $113.1 million, or 48.5 percent, from $233.6 million at December 31, 2012.  In addition, total NPAs declined $31.4 million, or 14.2 percent, to $189.7 million at December 31, 2013 compared with $221.2 million at September 30, 2013 and declined $147.1 million, or 43.7 percent, from $336.8 million at December 31, 2012.  Net charge-offs were $0.7 million for the fourth quarter of 2013 compared with $7.6 million for the third quarter of 2013 and $10.6 million for the fourth quarter of 2012.

Net Interest Revenue

Net interest revenue was $102.4 million for the fourth quarter of 2013, an increase of 1.5 percent from $100.9 million for the fourth quarter of 2012 and an increase of 2.2 percent from $100.2 million for the third quarter of 2013.  The fully taxable equivalent net interest margin was 3.52 percent for the fourth quarter of 2013 compared to 3.44 percent for the fourth quarter of 2012 and 3.45 percent for the third quarter of 2013.  Yields on loans and leases declined to 4.52 percent for the fourth quarter of 2013 compared with 4.76 percent for the fourth quarter of 2012 and 4.55 percent for the third quarter of 2013, while yields on total interest earning assets decreased to 3.86 percent for the fourth quarter of 2013 compared with 3.97 percent for the fourth quarter of 2012 and increased from 3.85 percent for the third quarter of 2013.  The average cost of deposits declined to 0.34 percent for the fourth quarter of 2013 from 0.47 percent for the fourth quarter of 2012 and 0.36 percent for the third quarter of 2013.

Asset, Deposit and Loan Activity

Total assets were $13.0 billion at December 31, 2013 compared with $13.4 billion at December 31, 2012.  Total deposits were $10.8 billion at December 31, 2013 compared with $11.1 billion at December 31, 2012.  Loans and leases, net of unearned income, were $9.0 billion at December 31, 2013 compared with $8.6 billion at December 31, 2012. 

The decrease in time deposits of $285.0 million, or 11.0 percent, at December 31, 2013 compared to December 31, 2012 was partially offset by growth in noninterest bearing demand deposits, which increased $99.4 million, or 3.9 percent, over the same period.  Additionally, savings deposits increased $88.3 million, or 7.7 percent, while interest bearing demand deposits declined $217.0 million, or 4.5 percent, over the same period.  As of December 31, 2013, $870.9 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.90 percent. 

Provision for Credit Losses and Allowance for Credit Losses

For the fourth quarter of 2013, no provision for credit losses was recorded, compared with $6.0 million for the fourth quarter of 2012 and $0.5 million for the third quarter of 2013.  Net charge-offs for the fourth quarter of 2013 were $0.7 million, compared with $10.6 million for the fourth quarter of 2012 and $7.6 million for the third quarter of 2013.  Recoveries of previously charged-off loans were $7.6 million for the fourth quarter of 2013, compared with $9.2 million for the fourth quarter of 2012 and $4.3 million for the third quarter of 2013.  Annualized net charge-offs were 0.03 percent of average loans and leases for the fourth quarter of 2013, compared with 0.49 percent for the fourth quarter of 2012 and 0.35 percent for the third quarter of 2013. 

NPLs were $120.4 million, or 1.34 percent of net loans and leases, at December 31, 2013, compared with $233.6 million, or 2.70 percent of net loans and leases, at December 31, 2012, and $144.3 million, or 1.65 percent of net loans and leases, at September 30, 2013.  The allowance for credit losses was $153.2 million, or 1.71 percent of net loans and leases, at December 31, 2013 compared with $164.5 million, or 1.90 percent of net loans and leases, at December 31, 2012 and $154.0 million, or 1.76 percent of net loans and leases, at September 30, 2013. 

NPLs at December 31, 2013 consisted primarily of $92.2 million of nonaccrual loans, compared with $121.4 million of nonaccrual loans at September 30, 2013.  Payments received on nonaccrual loans during the fourth quarter of 2013 totaled $25.3 million, compared with payments received on such loans of $27.7 million during the third quarter of 2013.  NPLs at December 31, 2013 also included $1.2 million of loans 90 days or more past due and still accruing, compared with $1.5 million of such loans at September 30, 2013, and included restructured loans still accruing of $27.0 million at December 31, 2013, compared with $21.5 million of such loans at September 30, 2013.  Early stage past due loans, representing loans 30-89 days past due, totaled $33.8 million at December 31, 2013 compared to $28.9 million at September 30, 2013.  

Included in nonaccrual loans at December 31, 2013 were $48.1 million of loans, or 52.2 percent of total nonaccrual loans, that were paying as agreed, compared with $61.5 million, or 50.6 percent of total nonaccrual loans, at September 30, 2013.  These loans were generally placed on nonaccrual status because the collateral values were less than the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or would be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values.  Such loans are generally deemed to be impaired, with a specific reserve established for the difference in the balance owed and the disposition value of the collateral.

Other real estate owned ("OREO") decreased $7.5 million to $69.3 million during the fourth quarter of 2013 from $76.9 million at September 30, 2013.  This net decrease reflected $7.9 million of OREO added through foreclosure, offset by sales of OREO of $14.3 million.  Write-downs in the value of existing properties were $1.1 million for the fourth quarter of 2013 compared to $1.8 million for the third quarter of 2013.  Sales of OREO during the fourth quarter of 2013 resulted in a net loss of $0.9 million compared to a net loss of $0.4 million for the third quarter of 2013.  At December 31, 2013, OREO was carried at 43.6 percent of the aggregate loan balances at the time of foreclosure, compared with 45.6 percent at September 30, 2013.

Noninterest Revenue

Noninterest revenue was $65.1 million for the fourth quarter of 2013, compared with $70.9 million for the fourth quarter of 2012 and $62.5 million for the third quarter of 2013.  These results included a positive mortgage servicing rights ("MSR") valuation adjustment of $2.9 million for the fourth quarter of 2013 compared with a positive MSR valuation adjustment of $0.2 million for the fourth quarter of 2012 and a negative MSR valuation adjustment of $0.2 million for the third quarter of 2013. 

Excluding the MSR valuation adjustments, net mortgage lending revenue was $6.7 million for the fourth quarter of 2013, compared with $17.0 million for the fourth quarter of 2012 and $5.4 million for the third quarter of 2013.  Mortgage origination volume for the fourth quarter of 2013 was $222.3 million, compared with $549.4 million for the fourth quarter of 2012 and $341.9 million for the third quarter of 2013.

Credit and debit card fee revenue was $8.3 million for the fourth quarter of 2013, compared with $8.1 million for the fourth quarter of 2012 and $8.8 million for the third quarter of 2013.  Deposit service charge revenue was $13.6 million for the fourth quarter of 2013, compared with $13.9 million for the fourth quarter of 2012 and $13.7 million for the third quarter of 2013.  Insurance commission revenue was $21.4 million for the fourth quarter of 2013, compared with $20.5 million for the fourth quarter of 2012 and $23.8 million for the third quarter of 2013. 

Noninterest Expense

Noninterest expense for the fourth quarter of 2013 was $127.8 million, compared with $143.2 million for the fourth quarter of 2012 and $129.4 million for the third quarter of 2013.  Noninterest expense for the third quarter included pre-tax charges of $2.9 million related to the write-off of unamortized issuance costs associated with the redemption of the outstanding 8.15 percent trust preferred securities and $2.8 million to increase the litigation accrual related to probable losses associated with various legal proceedings.  Salaries and employee benefits expense was $75.5 million for the fourth quarter of 2013 compared to $77.2 million for the fourth quarter of 2012 and $73.5 million for the third quarter of 2013.  Foreclosed property expense was $2.8 million for the fourth quarter of 2013 compared with $12.0 million for the fourth quarter of 2012 and $3.3 million for the third quarter of 2013.  Deposit insurance assessments were $2.7 million for the fourth quarter of 2013 compared to $3.1 million for the fourth quarter of 2012 and $3.3 million for the third quarter of 2013.

Capital Management

BancorpSouth is a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 12.99 percent at December 31, 2013 and total risk based capital of 14.25 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for "well capitalized" classification.  The Company's equity capitalization consists of 100 percent common stock.  BancorpSouth's ratio of shareholders' equity to assets was 11.61 percent at December 31, 2013, compared with 10.82 percent at December 31, 2012 and 11.46 percent at September 30, 2013.  The ratio of tangible shareholders' equity to tangible assets was 9.44 percent at December 31, 2013, compared with 8.83 percent at December 31, 2012 and 9.43 percent at September 30, 2013.

Recent Transaction Announcements

On December 18, 2013, BancorpSouth Insurance Services, Inc. acquired the assets of Houston, Texas based GEM Insurance Agencies, LP.  GEM was formed in 1954 and produces annual commission revenues of approximately $9 million.  As a part of the transaction, the Company's existing Houston office will re-locate into GEM's current office located at 3355 West Alabama Street in Houston.  The combined operations are expected to produce annual revenues of approximately $11 million.

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 twelve (12) full-service banking offices along the I-20 corridor and has loan production offices in Madison, Mississippi and Natchitoches, Louisiana.  As of December 31, 2013 (unaudited), OIB, on a consolidated basis, reported total assets of $652.5 million, total loans of $477.8 million and total deposits of $549.7 million.  Under the terms of the definitive agreement, the Company will issue a maximum of 3,675,000 shares of the Company's common stock plus $22.875 million in cash for all outstanding shares of Ouachita Bancshares Corp.'s capital stock, subject to certain conditions and potential adjustments.  The terms of the agreement provide for a collar with respect to the total deal value ranging from $99 million to $112 million.  The merger has been unanimously approved by the Boards of Directors of both companies and is expected to close during the second quarter of 2014.  The transaction is subject to certain conditions, including the approval by OIB's shareholders and customary regulatory approvals.

Earlier today, 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, 2013 (unaudited), Central Community Corporation, on a consolidated basis, reported total assets of $1.3 billion, total loans of $555.5 million and total deposits of $1.1 billion.  Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company's common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation's capital stock, subject to certain conditions and potential adjustments.  The merger has been unanimously approved by the Boards of Directors of both companies and is expected to close during the second quarter of 2014.  The transaction is subject to certain conditions, including the approval by Central Community Corporation's shareholders and customary regulatory approvals.

Summary

Rollins concluded, "We are extremely proud of the progress that our Company made during 2013.  Going into the year, we consistently communicated the need to grow while improving our cost structure.  We have made meaningful strides towards both goals.  We reported net loan growth for three consecutive quarters, which contributed to net loan growth of almost 4 percent for the year.  We have also continued to drive expenses down through specific initiatives as well as through more disciplined expense management.  As we look to 2014, the goals are the same.  There remains work to be done to right-size our cost structure and we must continue to grow.  We are excited about the two bank deals that have been announced this month and the opportunities they will provide for our Company going forward.  We believe both of these deals will be an integral part of our strategy to grow and to better leverage our current operating structure." 

Conference Call

BancorpSouth will conduct a conference call to discuss its fourth quarter 2013 results on January 23, 2014, 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 $13.0 billion in assets.  BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 292 commercial banking, mortgage, and insurance locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.

In connection with the proposed merger of Ouachita Bancshares Corp. with and into BancorpSouth, BancorpSouth will file a registration statement on Form S-4 with the Securities and Exchange Commission.  Shareholders of BancorpSouth and Ouachita Bancshares Corp. are encouraged to read the registration statement, including the proxy statement/prospectus that will be a part of the registration statement, because it will contain important information about the merger, BancorpSouth and Ouachita Bancshares Corp. After the registration statement is filed with the SEC, the proxy statement/prospectus and other relevant documents will be available for free on the SEC's web site (www.sec.gov), and the proxy statement/prospectus will also be made available for free from the Corporate Secretary of each of BancorpSouth and Ouachita Bancshares Corp.

In connection with the proposed merger of Central Community Corporation with and into BancorpSouth, BancorpSouth will file a registration statement on Form S-4 with the Securities and Exchange Commission. Shareholders of BancorpSouth and Central Community Corporation are encouraged to read the registration statement, including the proxy statement/prospectus that will be a part of the registration statement, because it will contain important information about the merger, BancorpSouth and Central Community Corporation After the registration statement is filed with the SEC, the proxy statement/prospectus and other relevant documents will be available for free on the SEC's web site (www.sec.gov), and the proxy statement/prospectus will also be made available for free from the Corporate Secretary of each of BancorpSouth and Central Community Corporation

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 revenue estimates for the Company's operations in Houston, Texas following the closing of the transaction with GEM and the potential for expansion of the Company's business in Houston, the terms and closing of the proposed transactions with Ouachita Bancshares Corp. and Central Community Corporation, acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company's products and services, the opportunities to enhance market share in certain markets and market acceptance of the Company generally in new markets, the impact of cost-saving initiatives, our ability to improve efficiency, 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, the ability to obtain required shareholder and regulatory approvals of the mergers, the ability of the Company, Ouachita Bancshares Corp. and Central Community  Corp. to close the mergers, the ability of the Company to expand its insurance operations in Houston, 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 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 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 or 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 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 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.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)














Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended


12/31/13

9/30/13

6/30/13

3/31/13

12/31/12

Earnings Summary:






Interest revenue

$            112,510

$             111,961

$            112,009

$            113,027

$            117,095

Interest expense

10,093

11,720

13,796

14,949

16,234

Net interest revenue

102,417

100,241

98,213

98,078

100,861

Provision for credit losses

-

500

3,000

4,000

6,000

Net interest revenue, after provision






   for credit losses

102,417

99,741

95,213

94,078

94,861

Noninterest revenue

65,125

62,514

76,109

71,318

70,901

Noninterest expense

127,830

129,397

142,251

135,371

143,219

Income before income taxes

39,712

32,858

29,071

30,025

22,543

Income tax expense

12,014

8,001

8,316

9,220

5,563

Net income

$              27,698

$               24,857

$              20,755

$              20,805

$              16,980







Balance Sheet - Period End Balances






Total assets

$       13,029,733

$        12,916,153

$       13,217,705

$       13,393,135

$       13,397,198

Total earning assets

11,814,060

11,765,785

11,961,836

12,263,743

12,179,958

Total securities

2,466,989

2,554,156

2,644,939

2,607,176

2,434,032

Loans and leases, net of unearned income

8,958,015

8,773,115

8,678,714

8,581,538

8,636,989

Allowance for credit losses

153,236

153,974

161,047

162,601

164,466

Total deposits

10,773,836

10,717,946

10,961,618

11,164,926

11,088,146

Long-term debt

81,714

83,500

33,500

33,500

33,500

Total shareholders' equity

1,513,130

1,480,611

1,459,793

1,465,180

1,449,052







Balance Sheet - Average Balances






Total assets

$       12,955,127

$        12,928,505

$       13,146,040

$       13,249,374

$       13,143,193

Total earning assets

11,869,072

11,846,790

12,060,189

12,154,624

12,045,432

Total securities

2,511,888

2,598,786

2,616,274

2,520,414

2,454,031

Loans and leases, net of unearned income

8,830,917

8,682,966

8,588,673

8,580,329

8,635,139

Total deposits

10,739,352

10,745,945

10,938,489

11,090,989

10,938,246

Long-term debt

81,714

62,848

33,500

33,500

33,500

Total shareholders' equity

1,501,928

1,474,047

1,475,211

1,462,140

1,454,417







Nonperforming Assets:






Non-accrual loans and leases

$              92,173

$             121,353

$            149,542

$            188,190

$            207,241

Loans and leases 90+ days past due, still accruing

1,226

1,479

1,440

1,125

1,210

Restructured loans and leases, still accruing

27,007

21,502

16,953

17,702

25,099

Non-performing loans (NPLs)

120,406

144,334

167,935

207,017

233,550

Other real estate owned

69,338

76,853

88,438

96,314

103,248

Non-performing assets (NPAs)

$            189,744

$             221,187

$            256,373

$            303,331

$            336,798







Financial Ratios and Other Data:






Return on average assets

0.85%

0.76%

0.63%

0.64%

0.51%

Return on average shareholders' equity

7.32%

6.69%

5.64%

5.77%

4.64%

Return on tangible equity

9.16%

8.29%

7.12%

7.19%

5.84%

Pre-tax pre-provision return on average assets

1.22%

1.02%

0.98%

1.04%

0.86%

Non-interest income to average assets

1.99%

1.92%

2.32%

2.18%

2.15%

Non-interest expense to average assets

3.91%

3.97%

4.34%

4.14%

4.34%

Net interest margin-fully taxable equivalent

3.52%

3.45%

3.36%

3.37%

3.44%

Net interest rate spread

3.39%

3.32%

3.21%

3.21%

3.26%

Efficiency ratio (tax equivalent)

75.00%

78.11%

80.25%

78.55%

81.93%

Loan/deposit ratio

83.15%

81.85%

79.17%

76.86%

77.89%

Price to earnings mult (avg)

25.68

22.66

20.34

18.74

16.16

Market value to book value

160.04%

128.22%

115.42%

105.88%

94.87%

Market value to book value (avg)

143.60%

126.22%

107.59%

98.61%

90.83%

Headcount FTE

4,005

3,994

4,077

4,229

4,249

 


BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)














Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended


12/31/13

9/30/13

6/30/13

3/31/13

12/31/12

Credit Quality Ratios:






Net charge-offs to average loans and leases (annualized)

0.03%

0.35%

0.21%

0.27%

0.49%

Provision for credit losses to average loans and leases (annualized)

0.00%

0.02%

0.14%

0.19%

0.28%

Allowance for credit losses to net loans and leases

1.71%

1.76%

1.86%

1.89%

1.90%

Allowance for credit losses to non-performing loans and leases

127.27%

106.68%

95.90%

78.54%

70.42%

Allowance for credit losses to non-performing assets

80.76%

69.61%

62.82%

53.61%

48.83%

Non-performing loans and leases to net loans and leases

1.34%

1.65%

1.94%

2.41%

2.70%

Non-performing assets to net loans and leases

2.12%

2.52%

2.95%

3.53%

3.90%







Equity Ratios:






Total shareholders' equity to total assets

11.61%

11.46%

11.04%

10.94%

10.82%

Tangible shareholders' equity to tangible assets

9.44%

9.43%

9.04%

8.96%

8.83%













Capital Adequacy:






Tier 1 capital

12.99%

13.25%

14.21%

14.06%

13.77%

Total capital

14.25%

14.50%

15.47%

15.31%

15.03%

Tier 1 leverage capital

9.93%

9.93%

10.58%

10.33%

10.25%

   Estimated for current quarter












Common Share Data:






Basic earnings per share

$                  0.29

$                   0.26

$                  0.22

$                  0.22

$                  0.18

Diluted earnings per share

0.29

0.26

0.22

0.22

0.18

Cash dividends per share

0.05

0.05

0.01

0.01

0.01

Book value per share

15.89

15.55

15.34

15.39

15.33

Tangible book value per share

12.60

12.50

12.28

12.33

12.23

Market value per share (last)

25.42

19.94

17.70

16.30

14.54

Market value per share (high)

25.54

20.77

18.06

16.52

15.00

Market value per share (low)

19.64

17.76

14.72

14.14

12.55

Market value per share (avg)

22.81

19.63

16.50

15.18

13.92

Dividend payout ratio

17.19%

19.15%

4.59%

4.55%

5.57%

Total shares outstanding

95,261,691

95,211,602

95,190,797

95,174,441

94,549,867

Average shares outstanding - basic

95,217,203

95,201,238

95,177,167

94,595,897

94,496,341

Average shares outstanding - diluted

95,644,383

95,519,318

95,405,965

94,756,356

94,616,383













Yield/Rate:






(Taxable equivalent basis)






Loans, loans held for sale, and leases net of unearned income

4.52%

4.55%

4.62%

4.70%

4.76%

Available-for-sale securities:






  Taxable

1.51%

1.50%

1.55%

1.70%

1.76%

  Tax-exempt

5.52%

5.61%

5.47%

5.53%

5.42%

Short-term investments

0.25%

0.25%

0.25%

0.25%

0.25%

  Total interest earning assets and revenue

3.86%

3.85%

3.82%

3.87%

3.97%

Deposits:

0.34%

0.36%

0.39%

0.43%

0.47%

  Demand - interest bearing

0.18%

0.18%

0.21%

0.26%

0.30%

  Savings

0.13%

0.12%

0.14%

0.18%

0.22%

  Other time

1.13%

1.18%

1.23%

1.27%

1.32%

Short-term borrowings

0.07%

0.07%

0.07%

0.07%

0.07%

Junior subordinated debt

2.96%

6.57%

7.16%

7.23%

7.12%

Long-term debt

2.94%

3.19%

4.18%

4.21%

4.14%

  Total interest bearing liabilities and expense

0.46%

0.53%

0.61%

0.66%

0.71%

Interest bearing liabilities to interest earning assets

72.91%

74.15%

74.70%

75.54%

75.15%

Net interest tax equivalent adjustment

$                2,893

$                 2,905

$                2,931

$                2,939

$                3,162

 

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)









Dec-13

Sep-13

Jun-13

Mar-13

Dec-12



(Dollars in thousands)


Assets







Cash and due from banks

$                208,961

$                199,464

$                268,647

$                147,947

$                223,814


Interest bearing deposits with other banks

319,462

361,401

526,608

969,506

979,800


Available-for-sale securities, at fair value

2,466,989

2,554,156

2,644,939

2,607,176

2,434,032


Loans and leases

8,993,888

8,806,392

8,711,023

8,614,791

8,672,752


  Less:  Unearned income

35,873

33,277

32,309

33,253

35,763


             Allowance for credit losses

153,236

153,974

161,047

162,601

164,466


Net loans and leases

8,804,779

8,619,141

8,517,667

8,418,937

8,472,523


Loans held for sale

69,593

77,114

111,574

105,523

129,138


Premises and equipment, net

315,260

314,441

313,079

313,980

319,456


Accrued interest receivable

42,150

43,034

41,425

44,696

44,356


Goodwill

286,800

275,173

275,173

275,173

275,173


Other identifiable intangibles

26,079

15,179

15,865

16,586

17,329


Bank owned life insurance

239,434

236,969

235,015

233,007

231,120


Other real estate owned

69,338

76,853

88,438

96,314

103,248


Other assets

180,888

143,228

179,275

164,290

167,209


Total Assets

$           13,029,733

$           12,916,153

$           13,217,705

$           13,393,135

$           13,397,198


Liabilities







Deposits:







  Demand:  Noninterest bearing

$             2,644,592

$             2,597,762

$             2,610,768

$             2,582,859

$             2,545,169


                  Interest bearing

4,582,450

4,493,359

4,667,041

4,840,330

4,799,496


  Savings

1,234,130

1,220,227

1,210,497

1,212,736

1,145,785


  Other time

2,312,664

2,406,598

2,473,312

2,529,001

2,597,696


Total deposits

10,773,836

10,717,946

10,961,618

11,164,926

11,088,146


Federal funds purchased and







    securities sold under agreement







    to repurchase

421,028

418,623

382,871

353,742

414,611


Accrued interest payable

4,836

5,156

5,230

5,519

6,140


Junior subordinated debt securities

31,446

31,446

160,312

160,312

160,312


Long-term debt

81,714

83,500

33,500

33,500

33,500


Other liabilities

203,743

178,871

214,381

209,956

245,437


Total Liabilities

11,516,603

11,435,542

11,757,912

11,927,955

11,948,146


Shareholders' Equity







Common stock

238,079

238,029

237,976

237,936

236,375


Capital surplus

312,900

312,798

312,074

311,091

311,909


Accumulated other comprehensive loss

(29,959)

(39,389)

(39,333)

(13,120)

(8,646)


Retained earnings

992,110

969,173

949,076

929,273

909,414


Total Shareholders' Equity

1,513,130

1,480,611

1,459,793

1,465,180

1,449,052


Total Liabilities & Shareholders' Equity

$           13,029,733

$           12,916,153

$           13,217,705

$           13,393,135

$           13,397,198









 

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)









Dec-13

Sep-13

Jun-13

Mar-13

Dec-12



(Dollars in thousands)


Assets







Cash and due from banks

$                163,948

$                163,322

$                160,615

$                169,259

$                164,801


Interest bearing deposits with other banks

471,695

487,075

765,729

963,600

849,710


Available-for-sale securities, at fair value

2,511,888

2,598,786

2,616,274

2,520,414

2,454,031


Loans and leases

8,864,983

8,715,894

8,621,849

8,615,503

8,671,559


  Less:  Unearned income

34,066

32,928

33,176

35,174

36,420


             Allowance for credit losses

153,443

160,609

163,252

166,210

170,081


Net loans and leases

8,677,474

8,522,357

8,425,421

8,414,119

8,465,058


Loans held for sale

54,572

77,964

89,513

90,281

106,552


Premises and equipment, net

315,174

312,724

313,147

316,672

320,439


Accrued interest receivable

39,665

39,354

39,317

40,806

43,144


Goodwill

279,091

275,173

275,173

275,173

275,173


Other identifiable intangibles

18,658

15,446

16,142

16,876

17,511


Bank owned life insurance

237,657

235,708

233,670

231,814

208,504


Other real estate owned

77,211

86,545

91,505

97,336

119,852


Other assets

108,094

114,051

119,534

113,024

118,418


Total Assets

$           12,955,127

$           12,928,505

$           13,146,040

$           13,249,374

$           13,143,193


Liabilities







Deposits:







  Demand:  Noninterest bearing

$             2,667,667

$             2,551,812

$             2,522,577

$             2,463,436

$             2,482,168


                  Interest bearing

4,484,269

4,530,219

4,707,277

4,891,412

4,703,500


  Savings

1,224,588

1,216,599

1,208,454

1,173,603

1,117,297


  Other time

2,362,828

2,447,315

2,500,181

2,562,538

2,635,281


Total deposits

10,739,352

10,745,945

10,938,489

11,090,989

10,938,246


Federal funds purchased and







    securities sold under agreement







    to repurchase

469,245

441,807

399,789

360,178

401,968


Accrued interest payable

5,051

5,391

5,481

7,026

7,613


Junior subordinated debt securities

31,446

86,074

160,312

160,312

160,312


Long-term debt

81,714

62,848

33,500

33,500

33,500


Other liabilities

126,391

112,393

133,258

135,229

147,137


Total Liabilities

11,453,199

11,454,458

11,670,829

11,787,234

11,688,776


Shareholders' Equity







Common stock

238,038

237,997

237,956

236,922

236,197


Capital surplus

312,835

312,349

311,480

311,603

311,540


Accumulated other comprehensive (loss) income

(32,267)

(43,695)

(15,277)

(10,313)

1,260


Retained earnings

983,322

967,396

941,052

923,928

905,420


Total Shareholders' Equity

1,501,928

1,474,047

1,475,211

1,462,140

1,454,417


Total Liabilities & Shareholders' Equity

$           12,955,127

$           12,928,505

$           13,146,040

$           13,249,374

$           13,143,193









 

 

BancorpSouth, Inc.


Consolidated Condensed Statements of Income


(Dollars in thousands, except per share data)


(Unaudited)


















Quarter Ended


Year Ended



Dec-13


Sep-13


Jun-13


Mar-13


Dec-12


Dec-13


Dec-12


INTEREST REVENUE:















Loans and leases

$    99,989


$   98,836


$     98,524


$    99,092


$  102,925


$ 396,441


$ 425,611


Deposits with other banks

299


310


483


602


529


1,694


1,711


Federal funds sold and securities purchased















   under agreement to resell

-


-


-


-


-


-


3


Available-for-sale securities:















    Taxable

7,963


8,218


8,405


8,700


8,729


33,286


39,408


    Tax-exempt

3,810


3,866


3,911


3,960


4,083


15,547


16,658


Loans held for sale

449


731


686


673


829


2,539


3,033


        Total interest revenue

112,510


111,961


112,009


113,027


117,095


449,507


486,424

















INTEREST EXPENSE:















Interest bearing demand

2,036


2,061


2,423


3,125


3,588


9,645


16,111


Savings

387


383


422


513


606


1,705


2,697


Other time

6,746


7,271


7,671


8,041


8,749


29,729


39,797


Federal funds purchased and securities sold















   under agreement to repurchase

84


80


70


63


72


297


274


Long-term debt

605


501


349


348


349


1,803


1,446


Junior subordinated debt

235


1,424


2,860


2,857


2,869


7,376


11,502


Other

-


-


1


2


1


3


6


        Total interest expense

10,093


11,720


13,796


14,949


16,234


50,558


71,833

















        Net interest revenue

102,417


100,241


98,213


98,078


100,861


398,949


414,591


  Provision for credit losses

-


500


3,000


4,000


6,000


7,500


28,000


        Net interest revenue, after provision for















          credit losses

102,417


99,741


95,213


94,078


94,861


391,449


386,591

















NONINTEREST REVENUE:















Mortgage lending

9,605


5,134


17,892


12,346


17,188


44,977


56,919


Credit card, debit card and merchant fees

8,324


8,834


8,324


7,523


8,125


33,005


31,705


Deposit service charges

13,570


13,679


12,824


12,832


13,875


52,905


56,877


Trust income

3,717


3,332


3,192


3,210


3,391


13,451


11,913


Security gains (losses), net

29


(5)


3


19


152


46


442


Insurance commissions

21,397


23,800


25,862


26,641


20,502


97,700


90,138


Other

8,483


7,740


8,012


8,747


7,668


32,982


32,155


        Total noninterest revenue

65,125


62,514


76,109


71,318


70,901


275,066


280,149

















NONINTEREST EXPENSE:















Salaries and employee benefits

75,466


73,532


78,284


79,414


77,203


306,696


304,624


Occupancy, net of rental income

9,935


10,360


10,577


10,237


10,643


41,109


42,140


Equipment

4,298


4,555


4,585


4,948


5,309


18,386


20,849


Deposit insurance assessments

2,687


3,325


2,939


2,804


3,103


11,755


16,478


Voluntary early retirement expense

-


-


10,850


-


-


10,850


-


Write-off and amortization of bond issue cost

12


2,907


38


38


38


2,995


153


Other

35,432


34,718


34,978


37,930


46,923


143,058


164,949


        Total noninterest expenses

127,830


129,397


142,251


135,371


143,219


534,849


549,193


        Income before income taxes

39,712


32,858


29,071


30,025


22,543


131,666


117,547


Income tax expense

12,014


8,001


8,316


9,220


5,563


37,551


33,252


        Net income

$    27,698


$   24,857


$     20,755


$    20,805


$   16,980


$  94,115


$  84,295

















Net income per share: Basic

$       0.29


$       0.26


$        0.22


$       0.22


$       0.18


$      0.99


$      0.90


                                  Diluted

$       0.29


$       0.26


$        0.22


$       0.22


$       0.18


$      0.99


$      0.90

















 

 

BancorpSouth, Inc.


Selected Loan Data


(Dollars in thousands)


(Unaudited)














Quarter Ended



Dec-13


Sep-13


Jun-13


Mar-13


Dec-12


LOAN AND LEASE PORTFOLIO:











Commercial and industrial

$ 1,529,249


$ 1,503,809


$ 1,552,762


$ 1,480,916


$ 1,476,611


Real estate











   Consumer mortgages

1,976,073


1,931,171


1,880,338


1,871,312


1,873,875


   Home equity

494,339


490,361


482,068


482,398


486,074


   Agricultural

234,576


234,547


237,914


249,467


256,196


   Commercial and industrial-owner occupied

1,473,320


1,422,077


1,375,711


1,334,974


1,333,103


   Construction, acquisition and development

741,458


723,609


709,499


728,092


735,808


   Commercial real estate

1,846,039


1,795,352


1,754,841


1,739,533


1,748,881


Credit cards

111,328


105,112


103,251


98,803


104,884


All other

551,633


567,077


582,330


596,043


621,557


     Total loans

$ 8,958,015


$ 8,773,115


$ 8,678,714


$ 8,581,538


$ 8,636,989













ALLOWANCE FOR CREDIT LOSSES:











Balance, beginning of period

$   153,974


$   161,047


$    162,601


$   164,466


$   169,019













Loans and leases charged off:











Commercial and industrial

(837)


(889)


(1,008)


(1,938)


(2,174)


Real estate











   Consumer mortgages

(1,435)


(2,996)


(3,114)


(1,614)


(3,789)


   Home equity

(287)


(379)


(201)


(602)


(1,064)


   Agricultural

(238)


(169)


(327)


(2)


(456)


   Commercial and industrial-owner occupied

(1,041)


(1,684)


(830)


(300)


(1,421)


   Construction, acquisition and development

(1,784)


(1,727)


(2,036)


(1,198)


(5,286)


   Commercial real estate

(1,039)


(2,441)


(3,720)


(3,141)


(4,026)


Credit cards

(559)


(750)


(557)


(450)


(531)


All other

(1,108)


(837)


(462)


(492)


(977)


     Total loans charged off

(8,328)


(11,872)


(12,255)


(9,737)


(19,724)













Recoveries:











Commercial and industrial

1,361


820


747


589


3,507


Real estate











   Consumer mortgages

1,735


1,516


708


1,108


819


   Home equity

97


66


184


260


66


   Agricultural

34


48


120


13


10


   Commercial and industrial-owner occupied

734


297


1,439


254


561


   Construction, acquisition and development

2,483


953


360


886


1,621


   Commercial real estate

784


221


3,634


339


2,208


Credit cards

133


164


184


148


144


All other

229


214


325


275


235


     Total recoveries

7,590


4,299


7,701


3,872


9,171













Net charge-offs

(738)


(7,573)


(4,554)


(5,865)


(10,553)













Provision charged to operating expense

-


500


3,000


4,000


6,000


Balance, end of period

$   153,236


$   153,974


$    161,047


$   162,601


$   164,466













Average loans for period

$ 8,830,917


$ 8,682,966


$ 8,588,673


$ 8,580,329


$ 8,635,139













Ratio:











Net charge-offs to average loans (annualized)

0.03%


0.35%


0.21%


0.27%


0.49%













 

 

BancorpSouth, Inc.


Selected Loan Data


(Dollars in thousands)


(Unaudited)














Quarter Ended



Dec-13


Sep-13


Jun-13


Mar-13


Dec-12


NON-PERFORMING ASSETS











NON-PERFORMING LOANS AND LEASES:











  Nonaccrual Loans and Leases











    Commercial and industrial

$      3,079


$         5,498


$         6,225


$      7,009


$         9,311


    Real estate











       Consumer mortgages

25,645


30,569


34,226


39,012


36,133


       Home equity

3,695


3,287


3,862


4,272


3,497


       Agricultural

1,260


4,086


5,007


6,667


7,587


       Commercial and industrial-owner occupied

18,568


18,138


17,084


20,719


20,910


       Construction, acquisition and development

17,567


26,127


39,315


51,728


66,635


       Commercial real estate

20,972


31,468


40,940


55,318


57,656


    Credit cards

119


196


398


418


415


    All other

1,268


1,984


2,485


3,047


5,097


         Total nonaccrual loans and leases

$    92,173


$      121,353


$      149,542


$  188,190


$      207,241













  Loans and Leases 90+ Days Past Due, Still Accruing:











    Commercial and industrial

$          27


$             15


$                -


$          22


$            414


    Real estate











       Consumer mortgages

888


1,178


1,107


842


512


       Home equity

-


-


-


-


-


       Agricultural

-


-


-


-


10


       Commercial and industrial-owner occupied

-


-


-


-


19


       Construction, acquisition and development

-


-


-


-


-


       Commercial real estate

311


-


120


-


-


    Credit cards

-


263


213


261


228


    All other

-


23


-


-


27


         Total loans and leases 90+ days past due, still accruing

1,226


1,479


1,440


1,125


1,210













  Restructured Loans and Leases, Still Accruing

27,007


21,502


16,953


17,702


25,099


     Total non-performing loans and leases

120,406


144,334


167,935


207,017


233,550













OTHER REAL ESTATE OWNED:

69,338


76,853


88,438


96,314


103,248













Total Non-performing Assets

$  189,744


$      221,187


$      256,373


$  303,331


$      336,798













Additions to Nonaccrual Loans and Leases During the Quarter

$    18,556


$       21,182


$       21,890


$    22,294


$       44,674













  Loans and Leases 30-89 Days Past Due, Still Accruing:











    Commercial and industrial

$      2,817


$         1,909


$         1,517


$      1,764


$         3,080


    Real estate











       Consumer mortgages

14,150


10,914


11,887


11,720


13,403


       Home equity

1,828


1,278


1,315


1,567


1,272


       Agricultural

495


761


569


757


306


       Commercial and industrial-owner occupied

4,081


1,995


1,323


956


3,498


       Construction, acquisition and development

1,993


3,920


1,835


4,292


2,303


       Commercial real estate

5,574


5,818


535


1,331


1,176


    Credit cards

655


688


668


544


777


    All other

2,189


1,634


1,591


1,473


2,422


         Total Loans and Leases 30-89 days past due, still accruing

$    33,782


$       28,917


$       21,240


$    24,404


$       28,237













Credit Quality Ratios:











Provision for credit losses to average loans and leases (annualized)

0.00%


0.02%


0.14%


0.19%


0.28%


Allowance for credit losses to net loans and leases

1.71%


1.76%


1.86%


1.89%


1.90%


Allowance for credit losses to non-performing assets

80.76%


69.61%


62.82%


53.61%


48.83%


Allowance for credit losses to non-performing loans and leases

127.27%


106.68%


95.90%


78.54%


70.42%


Non-performing loans and leases to net loans and leases

1.34%


1.65%


1.94%


2.41%


2.70%


Non-performing assets to net loans and leases

2.12%


2.52%


2.95%


3.53%


3.90%













 

 

BancorpSouth, Inc.


Selected Loan Data


(Dollars in thousands)


(Unaudited)














Quarter Ended



Dec-13


Sep-13


Jun-13


Mar-13


Dec-12


REAL ESTATE CONSTRUCTION, ACQUISITION 











   AND DEVELOPMENT ("CAD") PORTFOLIO:











  Outstanding Balance











     Multi-family construction

$       7,702


$         7,974


$         8,902


$       8,182


$         6,542


     One-to-four family construction

224,286


203,988


202,603


193,032


177,392


     Recreation and all other loans

36,868


41,762


42,132


42,909


44,840


     Commercial construction

150,847


139,041


117,901


111,702


114,099


     Commercial acquisition and development

128,157


136,206


136,174


154,997


161,546


     Residential acquisition and development

193,598


194,638


201,787


217,270


231,389


         Total outstanding balance

$   741,458


$      723,609


$      709,499


$   728,092


$      735,808













  Nonaccrual CAD Loans











     Multi-family construction

$             -


$                -


$                -


$             -


$                -


     One-to-four family construction

2,937


3,249


6,193


8,154


10,609


     Recreation and all other loans

728


782


800


978


1,160


     Commercial construction

865


1,686


2,765


3,381


5,889


     Commercial acquisition and development

6,890


11,150


14,225


14,240


17,337


     Residential acquisition and development

6,147


9,260


15,332


24,975


31,640


         Total nonaccrual CAD loans

$     17,567


$       26,127


$       39,315


$     51,728


$       66,635













  CAD Loans 90+ Days Past Due, Still Accruing:











     Multi-family construction

$             -


$                -


$                -


$             -


$                -


     One-to-four family construction

-


-


-


-


-


     Recreation and all other loans

-


-


-


-


-


     Commercial construction

-


-


-


-


-


     Commercial acquisition and development

-


-


-


-


-


     Residential acquisition and development

-


-


-


-


-


         Total CAD loans 90+ days past due, still accruing

$             -


$                -


$                -


$             -


$                -













  Restructured CAD Loans, Still Accruing











     Multi-family construction

$             -


$                -


$                -


$             -


$                -


     One-to-four family construction

1,274


1,028


867


-


781


     Recreation and all other loans

13


15


15


17


17


     Commercial construction

346


348


351


-


-


     Commercial acquisition and development

1,990


2,010


2,030


2,047


458


     Residential acquisition and development

3,111


3,162


3,458


5,148


4,107


         Total restructured CAD loans, still accruing

$       6,734


$         6,563


$         6,721


$       7,212


$         5,363













        Total Non-performing CAD loans

$     24,301


$       32,690


$       46,036


$     58,940


$       71,998













  CAD NPL as a % of Outstanding CAD Balance











     Multi-family construction

-


-


-


-


-


     One-to-four family construction

1.9%


2.1%


3.5%


4.2%


6.4%


     Recreation and all other loans

2.0%


1.9%


1.9%


2.3%


2.6%


     Commercial construction

0.8%


1.5%


2.6%


3.0%


5.2%


     Commercial acquisition and development

6.9%


9.7%


11.9%


10.5%


11.0%


     Residential acquisition and development

4.8%


6.4%


9.3%


13.9%


15.4%


         Total CAD NPL as a % of outstanding CAD balance

3.3%


4.5%


6.5%


8.1%


9.8%













 

 

BancorpSouth, Inc.





Selected Loan Data





(Dollars in thousands)





(Unaudited)




















December 31, 2013




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$ 1,495,972


$            978


$       30,886


$          99


$                -


$    1,314


$ 1,529,249

Real estate














   Consumer mortgages

1,859,094


1,531


108,615


427


-


6,406


1,976,073

   Home equity

478,283


250


14,570


96


-


1,140


494,339

   Agricultural

214,728


779


18,187


-


-


882


234,576

   Commercial and industrial-owner occupied

1,409,757


116


50,853


849


-


11,745


1,473,320

   Construction, acquisition and development

674,299


1,459


49,401


587


-


15,712


741,458

   Commercial real estate

1,751,553


386


76,199


420


-


17,481


1,846,039

Credit cards

111,328


-


-


-


-


-


111,328

All other

538,467


71


12,832


-


-


263


551,633

     Total loans

$ 8,533,481


$         5,570


$      361,543


$      2,478


$                -


$  54,943


$ 8,958,015






























September 30, 2013




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$ 1,461,578


$         7,774


$       31,596


$            -


$                -


$    2,861


$ 1,503,809

Real estate














   Consumer mortgages

1,794,492


22,114


103,987


918


-


9,660


1,931,171

   Home equity

471,418


2,569


15,069


-


-


1,305


490,361

   Agricultural

210,065


3,044


17,816


-


-


3,622


234,547

   Commercial and industrial-owner occupied

1,343,131


12,632


52,992


475


105


12,742


1,422,077

   Construction, acquisition and development

637,448


8,450


53,498


1,027


-


23,186


723,609

   Commercial real estate

1,668,562


17,266


83,226


412


-


25,886


1,795,352

Credit cards

105,112


-


-


-


-


-


105,112

All other

548,402


4,497


13,695


-


-


483


567,077

     Total loans

$ 8,240,208


$       78,346


$      371,879


$      2,832


$            105


$  79,745


$ 8,773,115















 

 

BancorpSouth, Inc.


Selected Loan Data


(Dollars in thousands)


(Unaudited)














As of



Dec-13


Sep-13


Jun-13


Mar-13


Dec-12
























Unpaid principal balance of impaired loans

$      72,114


$      106,955


$      144,408


$  183,440


$      206,072


Cumulative charge-offs on impaired loans

17,171


27,210


38,916


45,649


49,344


Impaired nonaccrual loan and lease outstanding balance

54,943


79,745


105,492


137,791


156,728













Other non-accrual loans and leases not impaired

37,230


41,608


44,050


50,399


50,513













     Total non-accrual loans and leases

$      92,173


$      121,353


$      149,542


$  188,190


$      207,241













Allowance for impaired loans

4,146


3,843


7,965


11,658


10,541













     Nonaccrual loans and leases, net of specific reserves

$      88,027


$      117,510


$      141,577


$  176,532


$      196,700













Loans and leases 90+ days past due, still accruing

$        1,226


$         1,479


$         1,440


$      1,125


$         1,210


Restructured loans and leases, still accruing

27,007


21,502


16,953


17,702


25,099













     Total non-performing loans and leases

$    120,406


$      144,334


$      167,935


$  207,017


$      233,550













Allowance for impaired loans

$        4,146


$         3,843


$         7,965


$    11,658


$       10,541


Allowance for all other loans and leases

149,090


150,131


153,082


150,943


153,925













     Total allowance for credit losses

$    153,236


$      153,974


$      161,047


$  162,601


$      164,466













Outstanding balance of impaired loans

$      54,943


$       79,745


$      105,492


$  137,791


$      156,728


Allowance for impaired loans

4,146


3,843


7,965


11,658


10,541













     Net book value of impaired loans

$      50,797


$       75,902


$       97,527


$  126,133


$      146,187
























Net book value of impaired loans as a %











     of unpaid principal balance

70%


71%


68%


69%


71%













Coverage of other non-accrual loans and leases not impaired by











     the allowance for all other loans and leases

400%


361%


348%


299%


305%













Coverage of non-performing loans and leases not impaired











     by the allowance for all other loans and leases

228%


232%


245%


218%


200%













 

 

BancorpSouth, Inc.


Geographical Information


(Dollars in thousands)


(Unaudited)






















December 31, 2013



Alabama








Greater






Corporate





and Florida








Memphis




Texas and 


Banking





Panhandle


Arkansas*


Mississippi*


Missouri


Area


Tennessee*


Louisiana


and Other


Total


LOAN AND LEASE PORTFOLIO:



















Commercial and industrial

$   83,078


$   164,113


$   280,964


$  36,018


$     23,551


$     81,253


$   266,358


$   593,914


$  1,529,249


Real estate



















   Consumer mortgages

127,619


260,013


688,228


61,471


101,167


158,714


487,931


90,930


1,976,073


   Home equity

64,438


39,785


165,421


20,997


67,170


70,517


64,027


1,984


494,339


   Agricultural

8,416


71,200


58,042


3,575


14,547


11,129


63,155


4,512


234,576


   Commercial and industrial-owner occupied

176,162


173,027


472,646


64,911


91,790


88,710


282,816


123,258


1,473,320


   Construction, acquisition and development

99,980


70,508


190,990


28,024


80,339


101,782


134,551


35,284


741,458


   Commercial real estate

266,963


311,504


275,601


212,869


93,079


104,034


425,933


156,056


1,846,039


Credit cards

-


-


-


-


-


-


-


111,328


111,328


All other

32,101


59,247


147,163


2,590


48,056


39,404


86,039


137,033


551,633


     Total loans

$ 858,757


$ 1,149,397


$ 2,279,055


$ 430,455


$   519,699


$   655,543


$ 1,810,810


$ 1,254,299


$  8,958,015





















CAD PORTFOLIO:



















Multi-family construction

$           -


$         997


$         167


$           -


$             -


$       4,519


$       2,019


$             -


$        7,702


One-to-four family construction

37,616


13,995


50,717


7,332


11,861


65,188


36,707


870


224,286


Recreation and all other loans

1,575


7,787


12,178


517


4,590


1,165


9,056


-


36,868


Commercial construction

18,471


18,154


34,295


7,228


14,357


5,137


25,630


27,575


150,847


Commercial acquisition and development

12,054


15,666


37,905


5,607


23,404


11,071


21,091


1,359


128,157


Residential acquisition and development

30,264


13,909


55,728


7,340


26,127


14,702


40,048


5,480


193,598


     Total CAD loans

$   99,980


$     70,508


$   190,990


$  28,024


$     80,339


$   101,782


$   134,551


$     35,284


$     741,458





















NON-PERFORMING LOANS AND LEASES:



















Commercial and industrial

$     1,404


$         915


$         987


$           -


$           68


$           95


$         345


$         365


$        4,179


Real estate



















   Consumer mortgages

1,390


1,525


8,926


778


2,032


3,007


3,804


7,647


29,109


   Home equity

746


116


938


127


304


921


539


4


3,695


   Agricultural

-


753


107


272


201


-


551


1


1,885


   Commercial and industrial-owner occupied

3,828


3,683


8,676


549


1,656


3,871


540


748


23,551


   Construction, acquisition and development

4,460


417


4,008


2,055


8,584


1,146


2,574


1,057


24,301


   Commercial real estate

3,563


139


2,981


12,112


2,278


4,056


2,586


1,649


29,364


Credit cards

-


-


-


-


-


-


-


1,764


1,764


All other

148


140


1,443


-


47


325


429


26


2,558


     Total loans

$   15,539


$       7,688


$     28,066


$  15,893


$     15,170


$     13,421


$     11,368


$     13,261


$     120,406





















NON-PERFORMING LOANS AND LEASES



















   AS A PERCENTAGE OF OUTSTANDING:



















Commercial and industrial

1.69%


0.56%


0.35%


0.00%


0.29%


0.12%


0.13%


0.06%


0.27%


Real estate



















   Consumer mortgages

1.09%


0.59%


1.30%


1.27%


2.01%


1.89%


0.78%


8.41%


1.47%


   Home equity

1.16%


0.29%


0.57%


0.60%


0.45%


1.31%


0.84%


0.20%


0.75%


   Agricultural

0.00%


1.06%


0.18%


7.61%


1.38%


0.00%


0.87%


0.02%


0.80%


   Commercial and industrial-owner occupied

2.17%


2.13%


1.84%


0.85%


1.80%


4.36%


0.19%


0.61%


1.60%


   Construction, acquisition and development

4.46%


0.59%


2.10%


7.33%


10.68%


1.13%


1.91%


3.00%


3.28%


   Commercial real estate

1.33%


0.04%


1.08%


5.69%


2.45%


3.90%


0.61%


1.06%


1.59%


Credit cards

-


-


-


-


-


-


-


1.58%


1.58%


All other

0.46%


0.24%


0.98%


0.00%


0.10%


0.82%


0.50%


0.02%


0.46%


     Total loans

1.81%


0.67%


1.23%


3.69%


2.92%


2.05%


0.63%


1.06%


1.34%








































*Excludes the Greater Memphis Area.






































 

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)




















December 31, 2013


Alabama








Greater










and Florida








Memphis




Texas and 






Panhandle


Arkansas*


Mississippi*


Missouri


Area


Tennessee*


Louisiana


Other


Total

OTHER REAL ESTATE OWNED:


















Commercial and industrial

$        223


$                -


$                -


$            -


$                -


$             -


$           -


$           -


$         223

Real estate


















   Consumer mortgages

1,613


309


1,532


33


132


210


-


108


3,937

   Home equity

442


-


-


-


-


-


-


-


442

   Agricultural

907


-


216


-


1,084


930


-


-


3,137

   Commercial and industrial-owner occupied

33


32


1,002


-


449


25


105


-


1,646

   Construction, acquisition and development

15,667


631


11,631


1,059


22,696


5,174


257


158


57,273

   Commercial real estate

353


316


569


-


980


-


140


-


2,358

All other

84


1


82


-


28


-


94


33


322

     Total loans

$    19,322


$         1,289


$       15,032


$      1,092


$       25,369


$      6,339


$       596


$       299


$    69,338




















Quarter Ended










Dec-13


Sep-13


Jun-13


Mar-13


Dec-12









OTHER REAL ESTATE OWNED:


















Balance, beginning of period

$    76,853


$       88,438


$       96,314


$  103,248


$      128,211









Additions to foreclosed properties


















   New foreclosed property

7,868


9,536


9,639


2,222


8,451









Reductions in foreclosed properties


















   Sales

(14,272)


(19,333)


(15,641)


(7,811)


(27,892)









   Writedowns

(1,111)


(1,788)


(1,874)


(1,345)


(5,522)









Balance, end of period

$    69,338


$       76,853


$       88,438


$    96,314


$      103,248



























FORECLOSED PROPERTY EXPENSE


















Loss (gain) on sale of other real estate owned

$        949


$            352


$            166


$       (200)


$         4,203









Writedown of other real estate owned

1,111


1,788


1,874


1,345


5,522









Other foreclosed property expense

771


1,158


1,205


1,209


2,266









Total foreclosed property expense

$      2,831


$         3,298


$         3,245


$      2,354


$       11,991













































*Excludes the Greater Memphis Area.


















 

 

BancorpSouth, Inc.


Noninterest Revenue and Expense


(Dollars in thousands)


(Unaudited)














Quarter Ended



Dec-13


Sep-13


Jun-13


Mar-13


Dec-12


NONINTEREST REVENUE:











Mortgage lending

$      9,605


$         5,134


$       17,892


$    12,346


$       17,188


Credit card, debit card and merchant fees

8,324


8,834


8,324


7,523


8,125


Deposit service charges

13,570


13,679


12,824


12,832


13,875


Trust income

3,717


3,332


3,192


3,210


3,391


Securities gains (losses), net

29


(5)


3


19


152


Insurance commissions

21,397


23,800


25,862


26,641


20,502


Annuity fees

566


719


543


483


418


Brokerage commissions and fees

1,037


2,005


2,068


2,093


1,715


Bank-owned life insurance

2,466


1,954


2,008


1,887


1,899


Other miscellaneous income

4,414


3,062


3,393


4,284


3,636


     Total noninterest revenue

$    65,125


$       62,514


$       76,109


$    71,318


$       70,901













NONINTEREST EXPENSE:











Salaries and employee benefits

$    75,466


$       73,532


$       78,284


$    79,414


$       77,203


Occupancy, net of rental income

9,935


10,360


10,577


10,237


10,643


Equipment

4,298


4,555


4,585


4,948


5,309


Deposit insurance assessments

2,687


3,325


2,939


2,804


3,103


Voluntary early retirement expense

-


-


10,850


-


-


Amortization of bond issue cost

12


2,907


38


38


38


Advertising

1,436


1,210


1,169


743


2,045


Foreclosed property expense

2,831


3,298


3,245


2,354


11,991


Telecommunications

1,971


2,227


2,184


2,099


2,168


Public relations

972


1,105


1,175


1,005


1,304


Data processing

2,939


2,772


2,783


2,468


2,714


Computer software

2,197


2,190


2,146


1,963


2,031


Amortization of intangibles

819


686


722


743


857


Legal

2,537


4,626


3,896


9,366


3,133


Postage and shipping

1,133


1,027


1,074


1,135


1,117


Other miscellaneous expense

18,597


15,577


16,584


16,054


19,563


Total noninterest expense

$  127,830


$      129,397


$      142,251


$  135,371


$      143,219













INSURANCE COMMISSIONS:











Property and casualty commissions

$    15,588


$       18,372


$       18,762


$    16,878


$       14,968


Life and health commissions

4,525


4,061


5,093


4,688


4,376


Risk management income

648


628


573


650


581


Other

636


739


1,434


4,425


577


Total insurance commissions

$    21,397


$       23,800


$       25,862


$    26,641


$       20,502













 

 

BancorpSouth, Inc.


Selected Additional Information


(Dollars in thousands)


(Unaudited)














Quarter Ended



Dec-13


Sep-13


Jun-13


Mar-13


Dec-12


MORTGAGE SERVICING RIGHTS:











Fair value, beginning of period

$     51,025


$       49,001


$       41,478


$     37,882


$       34,562


Additions to mortgage servicing rights:











   Originations of servicing assets

1,984


3,826


4,012


4,268


5,146


Changes in fair value:











   Due to payoffs/paydowns

(1,240)


(1,560)


(1,739)


(1,705)


(2,005)


   Due to change in valuation inputs or











     assumptions used in the valuation model

2,894


(240)


5,252


1,037


183


   Other changes in fair value

(1)


(2)


(2)


(4)


(4)


Fair value, end of period

$     54,662


$       51,025


$       49,001


$     41,478


$       37,882













MORTGAGE LENDING REVENUE:











Origination

$       3,590


$         2,862


$       10,471


$       9,187


$       15,131


Servicing

4,361


4,072


3,908


3,827


3,879


MSR payoffs/paydowns

(1,240)


(1,560)


(1,739)


(1,705)


(2,005)


MSR valuation adjustment

2,894


(240)


5,252


1,037


183


Total mortgage lending revenue

$       9,605


$         5,134


$       17,892


$     12,346


$       17,188













Mortgage loans serviced

$ 5,577,325


$   5,543,619


$   5,393,580


$ 5,236,852


$   5,058,912


MSR/mtg loans serviced

0.98%


0.92%


0.91%


0.79%


0.75%













AVAILABLE-FOR-SALE SECURITIES, at fair value











U.S. Government agencies

$ 1,458,349


$   1,519,459


$   1,581,570


$ 1,517,725


$   1,401,996


Government agency issued residential











   mortgage-back securities

250,234


268,367


292,586


334,550


366,875


Government agency issued commercial











   mortgage-back securities

230,912


229,412


227,381


196,459


91,445


Obligations of states and political subdivisions

519,405


528,889


535,337


550,475


565,873


Other

8,089


8,029


8,065


7,967


7,843


Total available-for-sale securities

$ 2,466,989


$   2,554,156


$   2,644,939


$ 2,607,176


$   2,434,032













 

 

BancorpSouth, Inc.


Reconciliation of Non-GAAP Measures


(Dollars in thousands, except per share amounts)


(Unaudited)




























Certain financial information included in this press release are determined by methods other than in accordance with GAAP.  Management believes such measures are relevant to understanding the capital position and performance of the Company.  The non-GAAP financial measures presented in this press release are tangible shareholders' equity to tangible assets, return on tangible equity, pre-tax pre-provision return on average assets, and tangible book value per share.  Additionally, disclosure of these non-GAAP financial measures provides a meaningful base for comparability to other financial institutions.  Non-GAAP financial measures are not formally defined by GAAP, and other entities may use calculation methods different than those used by the Company.















Reconciliation of Pre-tax, Pre-provision Earnings:




























Quarter ended





12/31/13


9/30/13


6/30/13


3/31/13


12/31/12















Net income


$          27,698


$          24,857


$          20,755


$          20,805


$         16,980


Plus:

Provision for credit losses


-


500


3,000


4,000


6,000



Income tax expense


12,014


8,001


8,316


9,220


5,563


Pre-tax, pre-provision earnings


$          39,712


$          33,358


$          32,071


$          34,025


$         28,543






























Reconciliation of Tangible Assets and Tangible Shareholders' Equity to 










Total Assets and Total Shareholders' Equity:




























Quarter ended





12/31/13


9/30/13


6/30/13


3/31/13


12/31/12


Tangible assets












Total assets


$    13,029,733


$    12,916,153


$    13,217,705


$    13,393,135


$   13,397,198


Less:  

Goodwill


286,800


275,173


275,173


275,173


275,173



Other identifiable intangible assets


26,079


15,179


15,865


16,586


17,329


Total tangible assets


$    12,716,854


$    12,625,801


$    12,926,667


$    13,101,376


$   13,104,696















Tangible shareholders' equity












Total shareholders' equity


$     1,513,130


$     1,480,611


$     1,459,793


$      1,465,180


$    1,449,052


Less:

Goodwill


286,800


275,173


275,173


275,173


275,173



Other identifiable intangible assets


26,079


15,179


15,865


16,586


17,329


Total tangible shareholders' equity


$     1,200,251


$     1,190,259


$     1,168,755


$      1,173,421


$    1,156,550















Total average assets


$    12,955,127


$    12,928,505


$    13,146,040


$    13,249,374


$   13,143,193


Total common shares outstanding


95,261,691


95,211,602


95,190,797


95,174,441


94,549,867















Tangible shareholders' equity to tangible assets*


9.44%


9.43%


9.04%


8.96%


8.83%


Return on tangible equity **


9.16%


8.29%


7.12%


7.19%


5.84%


Pre-tax pre-provision return on average assets ***


1.22%


1.02%


0.98%


1.04%


0.86%


Tangible book value per share****


$           12.60


$           12.50


$           12.28


$            12.33


$          12.23




























*

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.















 

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