BancorpSouth Announces Third Quarter 2013 Earnings of $24.9 Million or $0.26 per Diluted Share

PR Newswire

TUPELO, Miss., Oct. 21, 2013 /PRNewswire/ -- BancorpSouth, Inc. (BXS) today announced financial results for the quarter and nine months ended September 30, 2013.

Highlights for the third quarter of 2013 included:

  • Net income of $24.9 million or $0.26 per diluted share.
  • BancorpSouth Capital Trust I redeemed all of its outstanding 8.15 percent trust preferred securities ("TRUPS") on August 12, 2013, which is expected to result in an annual reduction of interest expense for the Company of $9.1 million, or $0.06 per share net of tax. The redemption resulted in a charge of $2.9 million, or $0.02 per share net of tax, related to the write-off of unamortized issuance costs.
  • Generated net loan growth of $94.4 million, or 4.3 percent annualized, which represents the second consecutive quarter of net loan growth.
  • The net interest margin increased to 3.45 percent from 3.36 percent for the second quarter of 2013, benefitting from the TRUPS redemption as well as net loan growth.
  • Meaningful progress in reducing noninterest expense. Specifically, salaries and employee benefits declined $4.8 million, or 6.1 percent, on a sequential-quarter basis.
  • Non-performing loans and leases ("NPLs") declined $23.6 million, or 14.1 percent, compared to the second quarter of 2013, while non-performing assets ("NPAs") decreased $35.2 million, or 13.7 percent, over the same period.

The Company reported net income of $24.9 million, or $0.26 per diluted share, for the third quarter of 2013 compared with net income of $23.8 million, or $0.25 per diluted share, for the third quarter of 2012 and net income of $20.8 million, or $0.22 per diluted share, for the second quarter of 2013.  Additionally, the Company reported net income of $66.4 million, or $0.70 per diluted share, for the first nine months of 2013 compared to $67.3 million, or $0.72 per diluted share, for the first nine months of 2012.  

"Our results for the third quarter reflect improved profitability achieved through specific initiatives that were announced during the first half of the year as well as a continuing focus on growth and efficiency," remarked Dan Rollins, Chief Executive Officer.  "We are pleased to report net loan growth for the second consecutive quarter which, coupled with the redemption of the TRUPS, helped us achieve significant improvement in our net interest margin as well as growth in net interest income.  We are also beginning to see the benefits of our effort to improve efficiency.  Specifically, salaries and employee benefits expense declined meaningfully on a sequential-quarter basis as a result of the voluntary early retirement program as well as our effort to closely monitor headcount.

"Earnings for the quarter were impacted by two items that we consider to be non-routine," commented Rollins.  "The redemption of the TRUPS resulted in a pre-tax, non-cash charge of $2.9 million related to the write-off of unamortized issuance costs.  Also, income tax expense included a benefit of $1.3 million associated with the favorable resolution of an uncertain tax position, thus lowering the effective tax rate for the quarter.  Additionally, legal expense for the quarter included an increase of $2.8 million in the legal accrual for potential losses associated with certain ongoing legal matters, $1.8 million of which we consider to be related to matters outside the normal course of business."    

Rollins added, "We continue to be encouraged by trends in our credit quality, specifically the pace at which we are moving problem assets."  Earnings for the quarter reflected a provision for credit losses of $0.5 million, which was a decrease from $6.0 million for the third quarter of 2012 and $3.0 million for the second quarter of 2013.  NPLs declined $23.6 million, or 14.1 percent, during the third quarter of 2013 to $144.3 million at September 30, 2013 compared with $167.9 million at June 30, 2013 and declined $103.0 million, or 41.6 percent, from $247.3 million at September 30, 2012.  In addition, total NPAs declined $35.2 million, or 13.7 percent, to $221.2 million at September 30, 2013 compared with $256.4 million at June 30, 2013 and declined $154.4 million, or 41.1 percent, from $375.5 million at September 30, 2012.  Net charge-offs were $7.6 million for the third quarter of 2013 compared with $4.6 million for the second quarter of 2013 and $12.8 million for the third quarter of 2012.  Net charge-offs during the third quarter of 2013 included $3.4 million of charge-offs of loans which had been identified and reported as impaired and were reserved for in previous quarters. 

Net Interest Revenue

Net interest revenue was $100.2 million for the third quarter of 2013, a decrease of 3.0 percent from $103.4 million for the third quarter of 2012 and an increase of 2.1 percent from $98.2 million for the second quarter of 2013.  The fully taxable equivalent net interest margin was 3.45 percent for the third quarter of 2013 compared to 3.55 percent for the third quarter of 2012 and 3.36 percent for the second quarter of 2013.  Yields on loans and leases declined to 4.55 percent for the third quarter of 2013 compared with 4.85 percent for the third quarter of 2012 and 4.62 percent for the second quarter of 2013, while yields on total interest earning assets declined to 3.85 percent for the third quarter of 2013 compared with 4.13 percent for the third quarter of 2012 and increased from 3.82 percent for the second quarter of 2013.  The average cost of interest bearing liabilities declined to 0.53 percent for the third quarter of 2013 from 0.76 percent for the third quarter of 2012 and 0.61 percent for the second quarter of 2013.

Asset, Deposit and Loan Activity

Total assets were $12.9 billion at September 30, 2013 compared with $13.2 billion at September 30, 2012.  Total deposits were $10.7 billion at September 30, 2013 compared with $11.0 billion at September 30, 2012.  Loans and leases, net of unearned income, were $8.8 billion at September 30, 2013 compared with $8.7 billion at September 30, 2012. 

The decrease in time deposits of $274.8 million, or 10.2 percent, at September 30, 2013 compared to September 30, 2012 was partially offset by significant growth in noninterest bearing demand deposits, which increased $105.3 million, or 4.2 percent, over the same period.  Additionally, savings deposits increased $116.7 million, or 10.6 percent, while interest bearing demand deposits declined $203.9 million, or 4.3 percent, over the same period.  As of September 30, 2013, $969.9 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.92 percent. 

Provision for Credit Losses and Allowance for Credit Losses

For the third quarter of 2013, the provision for credit losses was $0.5 million, compared with $6.0 million for the third quarter of 2012 and $3.0 million for the second quarter of 2013.  Net charge-offs for the third quarter of 2013 were $7.6 million, compared with $12.8 million for the third quarter of 2012 and $4.6 million for the second quarter of 2013.  Recoveries of previously charged-off loans were $4.3 million for the third quarter of 2013, compared with $6.1 million for the third quarter of 2012 and $7.7 million for the second quarter of 2013.  Annualized net charge-offs were 0.35 percent of average loans and leases for the third quarter of 2013, compared with 0.59 percent for the third quarter of 2012 and 0.21 percent for the second quarter of 2013. 

NPLs were $144.3 million, or 1.65 percent of net loans and leases, at September 30, 2013, compared with $247.3 million, or 2.85 percent of net loans and leases, at September 30, 2012, and $167.9 million, or 1.94 percent of net loans and leases, at June 30, 2013.  The allowance for credit losses was $154.0 million, or 1.76 percent of net loans and leases, at September 30, 2013 compared with $169.0 million, or 1.95 percent of net loans and leases, at September 30, 2012 and $161.0 million, or 1.86 percent of net loans and leases, at June 30, 2013. 

NPLs at September 30, 2013 consisted primarily of $121.4 million of nonaccrual loans, compared with $149.5 million of nonaccrual loans at June 30, 2013.  Included in the reduction of nonaccrual loans during the third quarter of 2013 were payments received on nonaccrual loans of $27.7 million, compared with payments received on such loans of $27.5 million during the second quarter of 2013.  NPLs at September 30, 2013 also included $1.5 million of loans 90 days or more past due and still accruing, compared with $1.4 million of such loans at June 30, 2013, and included restructured loans still accruing of $21.5 million at September 30, 2013, compared with $17.0 million of such loans at June 30, 2013.  Early stage past due loans, representing loans 30-89 days past due, totaled $28.9 million at September 30, 2013 compared to $21.2 million at June 30, 2013.  

At September 30, 2013, $12.4 million of NPLs were residential construction, acquisition and development ("CAD") loans, $20.3 million were other CAD loans, $34.8 million were commercial real estate loans and $34.2 million were consumer mortgages.  NPLs from all other loan types totaled $42.6 million at September 30, 2013.  Included in nonaccrual loans at September 30, 2013 were $61.5 million of loans, or 50.6 percent of total nonaccrual loans, that were paying as agreed, compared with $72.4 million, or 48.4 percent of total nonaccrual loans, at June 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 $11.6 million to $76.9 million during the third quarter of 2013 from $88.4 million at June 30, 2013.  This net decrease reflected $9.5 million added through foreclosure, offset by sales of OREO of $19.3 million.  Write-downs in the value of existing properties were $1.8 million for the third quarter of 2013 compared to $1.9 million for the second quarter of 2013.  Sales of OREO during the third quarter of 2013 resulted in a net loss of $0.4 million compared to a net loss of $0.2 million for the second quarter of 2013.  At September 30, 2013, OREO was carried at 45.6 percent of the aggregate loan balances at the time of foreclosure, compared with 43.9 percent at June 30, 2013.

Noninterest Revenue

Noninterest revenue was $62.5 million for the third quarter of 2013, compared with $70.4 million for the third quarter of 2012 and $76.1 million for the second quarter of 2013.  These results included a negative mortgage servicing rights ("MSR") valuation adjustment of $0.2 million for the third quarter of 2013 compared with a negative adjustment of $3.2 million for the third quarter of 2012 and a positive adjustment of $5.3 million for the second quarter of 2013. 

Excluding the MSR valuation adjustments, net mortgage lending revenue was $5.4 million for the third quarter of 2013, compared with $16.8 million for the third quarter of 2012 and $12.6 million for the second quarter of 2013.  Mortgage origination volume for the third quarter of 2013 was $341.9 million, compared with $607.9 million for the third quarter of 2012 and $435.0 million for the second quarter of 2013.

Credit and debit card fee revenue was $8.8 million for the third quarter of 2013, compared with $8.3 million for both the third quarter of 2012 and the second quarter of 2013.  Service charge revenue was $13.7 million for the third quarter of 2013, compared with $14.2 million for the third quarter of 2012 and $12.8 million for the second quarter of 2013.  Insurance commission revenue was $23.8 million for the third quarter of 2013, compared with $23.5 million for the third quarter of 2012 and $25.9 million for the second quarter of 2013. 

Noninterest Expense

Noninterest expense for the third quarter of 2013 was $129.4 million, compared with $133.8 million for the third quarter of 2012 and $142.3 million for the second 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 TRUPS and $2.8 million to increase the litigation accrual related to potential losses associated with various legal proceedings.  Noninterest expense for the second quarter of 2013 included a pre-tax charge of $10.9 million related to additional benefits offered under the early retirement program.  Salaries and employee benefits expense declined to $73.5 million for the third quarter of 2013 compared to $74.8 million for the third quarter of 2012 and $78.3 million for the second quarter of 2013.  Foreclosed property expense was $3.3 million for the third quarter of 2013 compared with $8.8 million for the third quarter of 2012 and $3.2 million for the second quarter of 2013.  Deposit insurance assessments were $3.3 million for the third quarter of 2013 compared to $4.0 million for the third quarter of 2012 and $2.9 million for the second quarter of 2013.

Capital Management

BancorpSouth remains a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 13.26 percent at September 30, 2013 and total risk based capital of 14.52 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for "well capitalized" classification.  The Company's equity capitalization consists of 100 percent common stock.  BancorpSouth's ratio of shareholders' equity to assets was 11.46 percent at September 30, 2013, compared with 10.93 percent at September 30, 2012 and 11.04 percent at June 30, 2013.  The ratio of tangible shareholders' equity to tangible assets was 9.43 percent at September 30, 2013, compared with 8.91 percent at September 30, 2012 and 9.04 percent at June 30, 2013.

Summary

Rollins concluded, "We believe the financial results for the quarter reflect tangible benefits from the actions that we have taken and the focus that we have discussed both internally and externally over the last several months.  We have been able to grow loans and grow net interest income for two consecutive quarters while continuing to reduce the residual problem assets at a reasonable pace.  While we are not immune to the industry headwinds related to mortgage, we have also been able to continue to grow several of our noninterest revenue sources. Results for the quarter also reflect progress made in reducing expenses.  Specifically, the results of the voluntary early retirement program and a diligent focus on managing headcount provided a meaningful reduction to the salaries and benefits expense line for the quarter.  We believe that other actions that we continue to take daily with respect to other expense items will improve efficiency going forward." 

Conference Call

BancorpSouth will conduct a conference call to discuss its third quarter 2013 results on October 22, 2013, 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.

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $12.9 billion in assets.  BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 292 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.

Forward-Looking Statements

Certain statements contained in this news release may not be based 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 interest expense reduction related to the redemption of the TRUPS, 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, 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


9/30/2013

6/30/2013

3/31/2013

12/31/2012

9/30/2012

Earnings Summary:






Interest revenue

$         111,961

$          112,009

$         113,027

$         117,095

$         120,750

Interest expense

11,720

13,796

14,949

16,234

17,371

Net interest revenue

100,241

98,213

98,078

100,861

103,379

Provision for credit losses

500

3,000

4,000

6,000

6,000

Net interest revenue, after provision






   for credit losses

99,741

95,213

94,078

94,861

97,379

Noninterest revenue

62,514

76,109

71,318

70,901

70,420

Noninterest expense

129,397

142,251

135,371

143,219

133,788

Income before income taxes

32,858

29,071

30,025

22,543

34,011

Income tax expense

8,001

8,316

9,220

5,563

10,186

Net income

$           24,857

$            20,755

$            20,805

$            16,980

$           23,825







Balance Sheet - Period End Balances






Total assets

$   12,916,153

$     13,217,705

$    13,393,135

$    13,397,198

$    13,235,737

Total earning assets

11,765,785

11,961,836

12,263,743

12,179,958

12,050,190

Total securities

2,554,156

2,644,939

2,607,176

2,434,032

2,483,606

Loans and leases, net of unearned income

8,773,115

8,678,714

8,581,538

8,636,989

8,679,969

Allowance for credit losses

153,974

161,047

162,601

164,466

169,019

Total deposits

10,717,946

10,961,618

11,164,926

11,088,146

10,974,640

Long-term debt

83,500

33,500

33,500

33,500

33,500

Total shareholders' equity

1,480,611

1,459,793

1,465,180

1,449,052

1,446,703







Balance Sheet - Average Balances






Total assets

$   12,928,505

$     13,146,040

$    13,249,374

$    13,143,193

$    13,019,016

Total earning assets

11,846,790

12,060,189

12,154,624

12,045,432

11,924,778

Total securities

2,598,786

2,616,274

2,520,414

2,454,031

2,481,201

Loans and leases, net of unearned income

8,682,966

8,588,673

8,580,329

8,635,139

8,716,646

Total deposits

10,745,945

10,938,489

11,090,989

10,938,246

10,856,524

Long-term debt

62,848

33,500

33,500

33,500

33,500

Total shareholders' equity

1,474,047

1,475,211

1,462,140

1,454,417

1,432,157







Nonperforming Assets:






Non-accrual loans and leases

$         121,353

$          149,542

$         188,190

$         207,241

$         219,738

Loans and leases 90+ days past due, still accruing

1,479

1,440

1,125

1,210

1,442

Restructured loans and leases, still accruing

21,502

16,953

17,702

25,099

26,147

Non-performing loans (NPLs)

144,334

167,935

207,017

233,550

247,327

Other real estate owned

76,853

88,438

96,314

103,248

128,211

Non-performing assets (NPAs)

$         221,187

$          256,373

$         303,331

$         336,798

$         375,538







Financial Ratios and Other Data:






Return on average assets

0.76%

0.63%

0.64%

0.51%

0.73%

Return on average shareholders' equity

6.69%

5.64%

5.77%

4.64%

6.62%

Return on tangible equity

8.29%

7.12%

7.19%

5.84%

8.22%

Pre-tax pre-provision return on average assets

1.02%

0.98%

1.04%

0.86%

1.22%

Non-interest income to average assets

1.92%

2.32%

2.18%

2.15%

2.15%

Non-interest expense to average assets

3.97%

4.34%

4.14%

4.34%

4.09%

Net interest margin-fully taxable equivalent

3.45%

3.36%

3.37%

3.44%

3.55%

Net interest rate spread

3.32%

3.21%

3.21%

3.26%

3.37%

Efficiency ratio (tax equivalent)

78.11%

80.25%

78.55%

81.93%

75.65%

Loan/Deposit ratio

81.85%

79.17%

76.86%

77.89%

79.09%

Price to earnings mult (avg)

22.66

20.34

18.74

16.16

16.75

Market value to book value

128.22%

115.42%

105.88%

94.87%

96.22%

Market value to book value (avg)

126.22%

107.59%

98.61%

90.83%

96.35%

Headcount FTE

3,994

4,077

4,229

4,249

4,237













BancorpSouth, Inc.
Selected Financial Information
(Dollars in thousands, except per share data)
(Unaudited)














Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended


9/30/2013

6/30/2013

3/31/2013

12/31/2012

9/30/2012







Credit Quality Ratios:






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

0.35%

0.21%

0.27%

0.49%

0.59%

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

0.02%

0.14%

0.19%

0.28%

0.28%

Allowance for credit losses to net loans and leases

1.76%

1.86%

1.89%

1.90%

1.95%

Allowance for credit losses to non-performing loans and leases

106.68%

95.90%

78.54%

70.42%

68.34%

Allowance for credit losses to non-performing assets

69.61%

62.82%

53.61%

48.83%

45.01%

Non-performing loans and leases to net loans and leases

1.65%

1.94%

2.41%

2.70%

2.85%

Non-performing assets to net loans and leases

2.52%

2.95%

3.53%

3.90%

4.33%







Equity Ratios:






Total shareholders' equity to total assets

11.46%

11.04%

10.94%

10.82%

10.93%

Tangible shareholders' equity to tangible assets

9.43%

9.04%

8.96%

8.83%

8.91%













Capital Adequacy:






Tier 1 capital

13.26%

14.21%

14.06%

13.77%

13.55%

Total capital

14.52%

15.47%

15.31%

15.03%

14.81%

Tier 1 leverage capital

9.93%

10.58%

10.33%

10.25%

10.21%

   Estimated for current quarter












Common Share Data:






Basic earnings per share

$               0.26

$                 0.22

$                0.22

$                0.18

$                0.25

Diluted earnings per share

0.26

0.22

0.22

0.18

0.25

Cash dividends per share

0.05

0.01

0.01

0.01

0.01

Book value per share

15.55

15.34

15.39

15.33

15.32

Tangible book value per share

12.50

12.28

12.33

12.23

12.22

Market value per share (last)

19.94

17.70

16.30

14.54

14.74

Market value per share (high)

20.77

18.06

16.52

15.00

15.69

Market value per share (low)

17.76

14.72

14.14

12.55

13.81

Market value per share (avg)

19.63

16.50

15.18

13.92

14.76

Dividend payout ratio

19.15%

4.59%

4.55%

5.57%

3.96%

Total shares outstanding

95,211,602

95,190,797

95,174,441

94,549,867

94,440,710

Average shares outstanding - basic

95,201,238

95,177,167

94,595,897

94,496,341

94,438,433

Average shares outstanding - diluted

95,519,318

95,405,965

94,756,356

94,616,383

94,528,948













Yield/Rate:






(Taxable equivalent basis)






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

4.55%

4.62%

4.70%

4.76%

4.85%

Available-for-sale securities:






  Taxable

1.50%

1.55%

1.70%

1.76%

1.86%

  Tax-exempt

5.61%

5.47%

5.53%

5.42%

5.48%

Short-term investments

0.25%

0.25%

0.25%

0.25%

0.26%

  Total interest earning assets and revenue

3.85%

3.82%

3.87%

3.97%

4.13%

Deposits:






  Demand - interest bearing

0.18%

0.21%

0.26%

0.30%

0.33%

  Savings

0.12%

0.14%

0.18%

0.22%

0.25%

  Other time

1.18%

1.23%

1.27%

1.32%

1.38%

Short-term borrowings

0.07%

0.07%

0.07%

0.07%

0.09%

Junior subordinated debt

6.57%

7.16%

7.23%

7.12%

7.13%

Long-term debt

3.19%

4.18%

4.21%

4.14%

4.14%

  Total interest bearing liabilities and expense

0.53%

0.61%

0.66%

0.71%

0.76%

Interest bearing liabilities to interest earning assets

74.15%

74.70%

75.54%

75.15%

76.41%

Net interest tax equivalent adjustment

$             2,905

$               2,931

$              2,939

$              3,162

$              3,167

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)








Sep-13

Jun-13

Mar-13

Dec-12

Sep-12


(Dollars in thousands)

Assets






Cash and due from banks

$                 199,464

$                 268,647

$                 147,947

$                 223,814

$                 176,529

Interest bearing deposits with other banks

361,401

526,608

969,506

979,800

757,207

Available-for-sale securities, at fair value

2,554,156

2,644,939

2,607,176

2,434,032

2,483,606

Loans and leases

8,806,392

8,711,023

8,614,791

8,672,752

8,716,715

  Less:  Unearned income

33,277

32,309

33,253

35,763

36,746

             Allowance for credit losses

153,974

161,047

162,601

164,466

169,019

Net loans and leases

8,619,141

8,517,667

8,418,937

8,472,523

8,510,950

Loans held for sale

77,114

111,574

105,523

129,138

129,408

Premises and equipment, net

314,441

313,079

313,980

319,456

321,068

Accrued interest receivable

43,034

41,425

44,696

44,356

48,314

Goodwill

275,173

275,173

275,173

275,173

275,173

Bank owned life insurance

236,969

235,015

233,007

231,120

203,798

Other real estate owned

76,853

88,438

96,314

103,248

128,211

Other assets

158,407

195,140

180,876

184,538

201,473

Total Assets

$            12,916,153

$            13,217,705

$            13,393,135

$            13,397,198

$            13,235,737

Liabilities






Deposits:






  Demand:  Noninterest bearing

$              2,597,762

$              2,610,768

$              2,582,859

$              2,545,169

$              2,492,508

                  Interest bearing

4,493,359

4,667,041

4,840,330

4,799,496

4,697,260

  Savings

1,220,227

1,210,497

1,212,736

1,145,785

1,103,490

  Other time

2,406,598

2,473,312

2,529,001

2,597,696

2,681,382

Total deposits

10,717,946

10,961,618

11,164,926

11,088,146

10,974,640

Federal funds purchased and






    securities sold under agreement






    to repurchase

418,623

382,871

353,742

414,611

377,676

Accrued interest payable

5,156

5,230

5,519

6,140

6,759

Junior subordinated debt securities

31,446

160,312

160,312

160,312

160,312

Long-term debt

83,500

33,500

33,500

33,500

33,500

Other liabilities

178,871

214,381

209,956

245,437

236,147

Total Liabilities

11,435,542

11,757,912

11,927,955

11,948,146

11,789,034

Shareholders' Equity






Common stock

238,029

237,976

237,936

236,375

236,102

Capital surplus

312,798

312,074

311,091

311,909

311,271

Accumulated other comprehensive (loss) income

(39,389)

(39,333)

(13,120)

(8,646)

5,952

Retained earnings

969,173

949,076

929,273

909,414

893,378

Total Shareholders' Equity

1,480,611

1,459,793

1,465,180

1,449,052

1,446,703

Total Liabilities & Shareholders' Equity

$            12,916,153

$            13,217,705

$            13,393,135

$            13,397,198

$            13,235,737







BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)








Sep-13

Jun-13

Mar-13

Dec-12

Sep-12


(Dollars in thousands)

Assets






Cash and due from banks

$                 163,322

$                 160,615

$                 169,259

$                 164,801

$                 152,228

Interest bearing deposits with other banks

487,075

765,729

963,600

849,710

605,270

Available-for-sale securities, at fair value

2,598,786

2,616,274

2,520,414

2,454,031

2,481,201

Federal funds sold and securities






     purchased under agreement to resell

-

-

-

-

2,717

Loans and leases

8,715,894

8,621,849

8,615,503

8,671,559

8,755,094

  Less:  Unearned income

32,928

33,176

35,174

36,420

38,448

             Allowance for credit losses

160,609

163,252

166,210

170,081

179,283

Net loans and leases

8,522,357

8,425,421

8,414,119

8,465,058

8,537,363

Loans held for sale

77,964

89,513

90,281

106,552

118,944

Premises and equipment, net

312,724

313,147

316,672

320,439

320,234

Accrued interest receivable

39,354

39,317

40,806

43,144

44,789

Goodwill

275,173

275,173

275,173

275,173

273,867

Bank owned life insurance

235,708

233,670

231,814

208,504

203,151

Other real estate owned

86,545

91,505

97,336

119,852

134,384

Other assets

129,497

135,676

129,900

135,929

144,868

Total Assets

$            12,928,505

$            13,146,040

$            13,249,374

$            13,143,193

$            13,019,016

Liabilities






Deposits:






  Demand:  Noninterest bearing

$              2,551,812

$              2,522,577

$              2,463,436

$              2,482,168

$              2,328,948

                  Interest bearing

4,530,219

4,707,277

4,891,412

4,703,500

4,704,896

  Savings

1,216,599

1,208,454

1,173,603

1,117,297

1,092,802

  Other time

2,447,315

2,500,181

2,562,538

2,635,281

2,729,878

Total deposits

10,745,945

10,938,489

11,090,989

10,938,246

10,856,524

Federal funds purchased and






    securities sold under agreement






    to repurchase

441,807

399,789

360,178

401,968

388,817

Short-term Federal Home Loan Bank borrowings






   and other short-term borrowing

-

-

-

-

1,223

Accrued interest payable

5,391

5,481

7,026

7,613

8,404

Junior subordinated debt securities

86,074

160,312

160,312

160,312

160,312

Long-term debt

62,848

33,500

33,500

33,500

33,500

Other liabilities

112,393

133,258

135,229

147,137

138,079

Total Liabilities

11,454,458

11,670,829

11,787,234

11,688,776

11,586,859

Shareholders' Equity






Common stock

237,997

237,956

236,922

236,197

236,095

Capital surplus

312,349

311,480

311,603

311,540

310,642

Accumulated other comprehensive (loss) income

(43,695)

(15,277)

(10,313)

1,260

2,900

Retained earnings

967,396

941,052

923,928

905,420

882,520

Total Shareholders' Equity

1,474,047

1,475,211

1,462,140

1,454,417

1,432,157

Total Liabilities & Shareholders' Equity

$            12,928,505

$            13,146,040

$            13,249,374

$            13,143,193

$            13,019,016

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)
















Quarter Ended


Year To Date


Sep-13


Jun-13


Mar-13


Dec-12


Sep-12


Sep-13


Sep-12

INTEREST REVENUE:














Loans and leases

$    98,836


$   98,524


$     99,092


$  102,925


$ 105,937


$296,452


$322,686

Deposits with other banks

310


483


602


529


399


1,395


1,182

Federal funds sold and securities purchased














   under agreement to resell

-


-


-


-


2


-


3

Available-for-sale securities:














    Taxable

8,218


8,405


8,700


8,729


9,329


25,323


30,679

    Tax-exempt

3,866


3,911


3,960


4,083


4,109


11,737


12,575

Loans held for sale

731


686


673


829


974


2,090


2,204

        Total interest revenue

111,961


112,009


113,027


117,095


120,750


336,997


369,329















INTEREST EXPENSE:














Interest bearing demand

2,061


2,423


3,125


3,588


3,889


7,609


12,523

Savings

383


422


513


606


686


1,318


2,091

Other time

7,271


7,671


8,041


8,749


9,482


22,983


31,048

Federal funds purchased and securities sold














   under agreement to repurchase

80


70


63


72


73


213


202

FHLB borrowings

350


349


348


349


364


1,047


1,097

Junior subordinated debt

1,424


2,860


2,857


2,869


2,875


7,141


8,633

Other

151


1


2


1


2


154


5

        Total interest expense

11,720


13,796


14,949


16,234


17,371


40,465


55,599















        Net interest revenue

100,241


98,213


98,078


100,861


103,379


296,532


313,730

  Provision for credit losses

500


3,000


4,000


6,000


6,000


7,500


22,000

        Net interest revenue, after provision for














          credit losses

99,741


95,213


94,078


94,861


97,379


289,032


291,730















NONINTEREST REVENUE:














Mortgage lending

5,134


17,892


12,346


17,188


13,549


35,372


39,731

Credit card, debit card and merchant fees

8,834


8,324


7,523


8,125


8,270


24,681


23,580

Deposit service charges

13,679


12,824


12,832


13,875


14,189


39,335


43,002

Trust income

3,332


3,192


3,210


3,391


3,101


9,734


8,522

Security (losses) gains, net

(5)


3


19


152


39


17


290

Insurance commissions

23,800


25,862


26,641


20,502


23,519


76,303


69,636

Other

7,740


8,012


8,747


7,668


7,753


24,499


24,487

        Total noninterest revenue

62,514


76,109


71,318


70,901


70,420


209,941


209,248















NONINTEREST EXPENSE:














Salaries and employee benefits

73,532


78,284


79,414


77,203


74,829


231,230


227,421

Occupancy, net of rental income

10,360


10,577


10,237


10,643


10,944


31,174


31,497

Equipment

4,555


4,585


4,948


5,309


5,083


14,088


15,540

Deposit insurance assessments

3,325


2,939


2,804


3,103


3,998


9,068


13,375

Voluntary early retirement expense

-


10,850


-


-


-


10,850


-

Write-off and amortization of bond issue cost

2,907


38


38


38


38


2,983


114

Other

34,718


34,978


37,930


46,923


38,896


107,626


118,027

        Total noninterest expenses

129,397


142,251


135,371


143,219


133,788


407,019


405,974

        Income before income taxes

32,858


29,071


30,025


22,543


34,011


91,954


95,004

Income tax expense

8,001


8,316


9,220


5,563


10,186


25,537


27,689

        Net income

$    24,857


$   20,755


$     20,805


$    16,980


$   23,825


$  66,417


$  67,315















Net income per share: Basic

$       0.26


$       0.22


$         0.22


$       0.18


$       0.25


$      0.70


$      0.72

                                  Diluted

$       0.26


$       0.22


$         0.22


$       0.18


$       0.25


$      0.70


$      0.72

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Sep-13


Jun-13


Mar-13


Dec-12


Sep-12

LOAN AND LEASE PORTFOLIO:










Commercial and industrial

$1,503,809


$1,552,762


$ 1,480,916


$1,476,611


$1,462,719

Real estate










   Consumer mortgages

1,931,171


1,880,338


1,871,312


1,873,875


1,888,783

   Home equity

490,361


482,068


482,398


486,074


492,833

   Agricultural

234,547


237,914


249,467


256,196


257,733

   Commercial and industrial-owner occupied

1,422,077


1,375,711


1,334,974


1,333,103


1,309,631

   Construction, acquisition and development

723,609


709,499


728,092


735,808


823,692

   Commercial real estate

1,795,352


1,754,841


1,739,533


1,748,881


1,738,516

Credit cards

105,112


103,251


98,803


104,884


101,405

All other

567,077


582,330


596,043


621,557


604,657

     Total loans

$8,773,115


$8,678,714


$ 8,581,538


$8,636,989


$8,679,969











ALLOWANCE FOR CREDIT LOSSES:










Balance, beginning of period

$   161,047


$   162,601


$    164,466


$   169,019


$   175,847











Loans and leases charged off:










Commercial and industrial

(889)


(1,008)


(1,938)


(2,174)


(4,334)

Real estate










   Consumer mortgages

(2,996)


(3,114)


(1,614)


(3,789)


(2,299)

   Home equity

(379)


(201)


(602)


(1,064)


(270)

   Agricultural

(169)


(327)


(2)


(456)


(302)

   Commercial and industrial-owner occupied

(1,684)


(830)


(300)


(1,421)


(994)

   Construction, acquisition and development

(1,727)


(2,036)


(1,198)


(5,286)


(6,845)

   Commercial real estate

(2,441)


(3,720)


(3,141)


(4,026)


(2,633)

Credit cards

(750)


(557)


(450)


(531)


(540)

All other

(837)


(462)


(492)


(977)


(731)

     Total loans charged off

(11,872)


(12,255)


(9,737)


(19,724)


(18,948)











Recoveries:










Commercial and industrial

820


747


589


3,507


1,007

Real estate










   Consumer mortgages

1,516


708


1,108


819


256

   Home equity

66


184


260


66


37

   Agricultural

48


120


13


10


53

   Commercial and industrial-owner occupied

297


1,439


254


561


270

   Construction, acquisition and development

953


360


886


1,621


2,676

   Commercial real estate

221


3,634


339


2,208


1,443

Credit cards

164


184


148


144


144

All other

214


325


275


235


234

     Total recoveries

4,299


7,701


3,872


9,171


6,120











Net charge-offs

(7,573)


(4,554)


(5,865)


(10,553)


(12,828)











Provision charged to operating expense

500


3,000


4,000


6,000


6,000

Balance, end of period

$   153,974


$   161,047


$    162,601


$   164,466


$   169,019











Average loans for period

$8,682,966


$8,588,673


$ 8,580,329


$8,635,139


$8,716,646











Ratio:










Net charge-offs to average loans (annualized)

0.35%


0.21%


0.27%


0.49%


0.59%

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Sep-13


Jun-13


Mar-13


Dec-12


Sep-12

NON-PERFORMING ASSETS










NON-PERFORMING LOANS AND LEASES:










  Nonaccrual Loans and Leases










    Commercial and industrial

$     5,498


$         6,225


$         7,009


$      9,311


$         8,674

    Real estate










       Consumer mortgages

30,569


34,226


39,012


36,133


35,599

       Home equity

3,287


3,862


4,272


3,497


3,471

       Agricultural

4,086


5,007


6,667


7,587


7,190

       Commercial and industrial-owner occupied

18,138


17,084


20,719


20,910


27,059

       Construction, acquisition and development

26,127


39,315


51,728


66,635


92,351

       Commercial real estate

31,468


40,940


55,318


57,656


40,514

    Credit cards

196


398


418


415


465

    All other

1,984


2,485


3,047


5,097


4,415

         Total nonaccrual loans and leases

$  121,353


$     149,542


$     188,190


$  207,241


$     219,738











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










    Commercial and industrial

$          15


$                -


$              22


$        414


$              45

    Real estate










       Consumer mortgages

1,178


1,107


842


512


1,027

       Home equity

-


-


-


-


-

       Agricultural

-


-


-


10


-

       Commercial and industrial-owner occupied

-


-


-


19


119

       Construction, acquisition and development

-


-


-


-


-

       Commercial real estate

-


120


-


-


-

    Credit cards

263


213


261


228


236

    All other

23


-


-


27


15

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

1,479


1,440


1,125


1,210


1,442











  Restructured Loans and Leases, Still Accruing

21,502


16,953


17,702


25,099


26,147

     Total non-performing loans and leases

144,334


167,935


207,017


233,550


247,327











OTHER REAL ESTATE OWNED:

76,853


88,438


96,314


103,248


128,211











Total Non-performing Assets

$  221,187


$     256,373


$     303,331


$  336,798


$     375,538











Additions to Nonaccrual Loans and Leases During the Quarter

$    21,182


$       21,890


$       22,294


$    44,674


$       28,918











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










    Commercial and industrial

$     1,909


$         1,517


$         1,764


$      3,080


$         6,065

    Real estate










       Consumer mortgages

10,914


11,887


11,720


13,403


14,745

       Home equity

1,278


1,315


1,567


1,272


1,766

       Agricultural

761


569


757


306


977

       Commercial and industrial-owner occupied

1,995


1,323


956


3,498


4,859

       Construction, acquisition and development

3,920


1,835


4,292


2,303


8,528

       Commercial real estate

5,818


535


1,331


1,176


3,210

    Credit cards

688


668


544


777


734

    All other

1,634


1,591


1,473


2,422


2,861

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

$    28,917


$       21,240


$       24,404


$    28,237


$       43,745











Credit Quality Ratios:










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

0.02%


0.14%


0.19%


0.28%


0.28%

Allowance for credit losses to net loans and leases

1.76%


1.86%


1.89%


1.90%


1.95%

Allowance for credit losses to non-performing assets

69.61%


62.82%


53.61%


48.83%


45.01%

Allowance for credit losses to non-performing loans and leases

106.68%


95.90%


78.54%


70.42%


68.34%

Non-performing loans and leases to net loans and leases

1.65%


1.94%


2.41%


2.70%


2.85%

Non-performing assets to net loans and leases

2.52%


2.95%


3.53%


3.90%


4.33%

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Sep-13


Jun-13


Mar-13


Dec-12


Sep-12

REAL ESTATE CONSTRUCTION, ACQUISITION 










   AND DEVELOPMENT ("CAD") PORTFOLIO:










  Outstanding Balance










     Multi-family construction

$       7,974


$         8,902


$         8,182


$       6,542


$         4,546

     One-to-four family construction

203,988


202,603


193,032


177,392


189,561

     Recreation and all other loans

41,762


42,132


42,909


44,840


62,888

     Commercial construction

139,041


117,901


111,702


114,099


126,296

     Commercial acquisition and development

136,206


136,174


154,997


161,546


177,887

     Residential acquisition and development

194,638


201,787


217,270


231,389


262,514

         Total outstanding balance

$   723,609


$     709,499


$     728,092


$   735,808


$     823,692











  Nonaccrual CAD Loans










     Multi-family construction

$              -


$                -


$                -


$              -


$                -

     One-to-four family construction

3,249


6,193


8,154


10,609


14,171

     Recreation and all other loans

782


800


978


1,160


1,166

     Commercial construction

1,686


2,765


3,381


5,889


6,991

     Commercial acquisition and development

11,150


14,225


14,240


17,337


21,408

     Residential acquisition and development

9,260


15,332


24,975


31,640


48,615

         Total nonaccrual CAD loans

26,127


39,315


51,728


66,635


92,351











  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

1,028


867


-


781


787

     Recreation and all other loans

15


15


17


17


20

     Commercial construction

348


351


-


-


-

     Commercial acquisition and development

2,010


2,030


2,047


458


133

     Residential acquisition and development

3,162


3,458


5,148


4,107


4,149

         Total restructured CAD loans, still accruing

6,563


6,721


7,212


5,363


5,089











        Total Non-performing CAD loans

$     32,690


$       46,036


$       58,940


$     71,998


$       97,440











  CAD NPL as a % of Outstanding CAD Balance










     Multi-family construction

-


-


-


-


-

     One-to-four family construction

2.1%


3.5%


4.2%


6.4%


7.9%

     Recreation and all other loans

1.9%


1.9%


2.3%


2.6%


1.9%

     Commercial construction

1.5%


2.6%


3.0%


5.2%


5.5%

     Commercial acquisition and development

9.7%


11.9%


10.5%


11.0%


12.1%

     Residential acquisition and development

6.4%


9.3%


13.9%


15.4%


20.1%

         Total CAD NPL as a % of outstanding CAD balance

4.5%


6.5%


8.1%


9.8%


11.8%

 

BancorpSouth, Inc.





Selected Loan Data





(Dollars in thousands)





(Unaudited)




















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






























June 30, 2013




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$1,504,523


$       14,918


$       29,648


$        531


$                -


$    3,142


$1,552,762

Real estate














   Consumer mortgages

1,701,566


40,526


121,497


2,979


134


13,636


1,880,338

   Home equity

458,379


5,391


15,752


698


68


1,780


482,068

   Agricultural

210,989


9,568


13,599


-


-


3,758


237,914

   Commercial and industrial-owner occupied

1,275,037


28,413


59,568


222


-


12,471


1,375,711

   Construction, acquisition and development

594,175


28,727


51,041


1,025


-


34,531


709,499

   Commercial real estate

1,537,671


63,791


117,579


245


30


35,525


1,754,841

Credit cards

103,251


-


-


-


-


-


103,251

All other

566,554


5,613


8,991


523


-


649


582,330

     Total loans

$7,952,145


$     196,947


$     417,675


$      6,223


$            232


$105,492


$8,678,714

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












As of


Sep-13


Jun-13


Mar-13


Dec-12


Sep-12





















Unpaid principal balance of impaired loans

$    106,955


$     144,408


$     183,440


$  206,072


$     225,581

Cumulative charge-offs on impaired loans

27,210


38,916


45,649


49,344


49,442

Impaired nonaccrual loan and lease outstanding balance

79,745


105,492


137,791


156,728


176,139











Other non-accrual loans and leases not impaired

41,608


44,050


50,399


50,513


43,599











     Total non-accrual loans and leases

$    121,353


$     149,542


$     188,190


$  207,241


$     219,738











Allowance for impaired loans

3,843


7,965


11,658


10,541


18,205











     Nonaccrual loans and leases, net of specific reserves

$    117,510


$     141,577


$     176,532


$  196,700


$     201,533











Loans and leases 90+ days past due, still accruing

$        1,479


$         1,440


$         1,125


$      1,210


$         1,442

Restructured loans and leases, still accruing

21,502


16,953


17,702


25,099


26,147











     Total non-performing loans and leases

$    144,334


$     167,935


$     207,017


$  233,550


$     247,327











Allowance for impaired loans

$        3,843


$         7,965


$       11,658


$    10,541


$       18,205

Allowance for all other loans and leases

150,131


153,082


150,943


153,925


150,814











     Total allowance for credit losses

$    153,974


$     161,047


$     162,601


$  164,466


$     169,019











Outstanding balance of impaired loans

$      79,745


$     105,492


$     137,791


$  156,728


$     176,139

Allowance for impaired loans

3,843


7,965


11,658


10,541


18,205











     Net book value of impaired loans

$      75,902


$       97,527


$     126,133


$  146,187


$     157,934





















Net book value of impaired loans as a %










     of unpaid principal balance

71%


68%


69%


71%


70%











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










     the allowance for all other loans and leases

361%


348%


299%


305%


346%











Coverage of non-performing loans and leases not impaired










     by the allowance for all other loans and leases

232%


245%


218%


200%


212%

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)




















September 30, 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

$   82,158


$   167,672


$   280,961


$  30,080


$     22,350


$     81,512


$   258,600


$   580,476


$  1,503,809

Real estate


















   Consumer mortgages

119,583


254,133


696,396


61,622


97,748


156,788


484,890


60,011


1,931,171

   Home equity

64,712


39,351


164,095


21,443


67,668


68,951


61,879


2,262


490,361

   Agricultural

8,570


74,355


55,503


3,918


15,212


11,869


60,186


4,934


234,547

   Commercial and industrial-owner occupied

165,153


174,315


471,711


60,402


96,102


86,582


277,303


90,509


1,422,077

   Construction, acquisition and development

91,974


67,271


185,174


26,834


79,615


104,400


135,489


32,852


723,609

   Commercial real estate

264,623


303,769


276,522


195,627


101,268


96,988


408,417


148,138


1,795,352

Credit cards

-


-


-


-


-


-


-


105,112


105,112

All other

35,094


60,041


154,391


2,661


48,839


40,976


88,651


136,424


567,077

     Total loans

$ 831,867


$1,140,907


$2,284,753


$402,587


$   528,802


$   648,066


$1,775,415


$1,160,718


$  8,773,115



















CAD PORTFOLIO:


















Multi-family construction

$           -


$              -


$             7


$       289


$              -


$       5,868


$       1,810


$              -


$        7,974

One-to-four family construction

36,741


12,792


46,771


6,940


10,185


56,562


33,248


749


203,988

Recreation and all other loans

1,421


8,097


12,528


653


4,681


807


13,575


-


41,762

Commercial construction

14,633


16,855


26,767


4,687


11,671


14,447


25,654


24,327


139,041

Commercial acquisition and development

12,100


15,052


38,942


5,943


27,052


11,994


23,211


1,912


136,206

Residential acquisition and development

27,079


14,475


60,159


8,322


26,026


14,722


37,991


5,864


194,638

     Total CAD loans

$   91,974


$     67,271


$   185,174


$  26,834


$     79,615


$   104,400


$   135,489


$     32,852


$     723,609



















NON-PERFORMING LOANS AND LEASES:


















Commercial and industrial

$    1,443


$         961


$       1,010


$        20


$         182


$         161


$         918


$       1,940


$        6,635

Real estate


















   Consumer mortgages

973


1,925


10,603


918


2,278


3,777


5,693


8,005


34,172

   Home equity

697


74


919


127


441


650


376


3


3,287

   Agricultural

79


3,245


127


353


461


-


254


3


4,522

   Commercial and industrial-owner occupied

1,011


4,526


7,841


558


3,495


3,950


924


755


23,060

   Construction, acquisition and development

6,696


1,257


5,600


2,923


11,928


1,725


1,503


1,058


32,690

   Commercial real estate

7,121


5,642


3,511


9,049


4,493


314


2,979


1,693


34,802

Credit cards

-


-


-


-


-


-


-


2,032


2,032

All other

234


221


1,640


13


36


362


603


25


3,134

     Total loans

$   18,254


$     17,851


$     31,251


$  13,961


$     23,314


$     10,939


$     13,250


$     15,514


$     144,334



















NON-PERFORMING LOANS AND LEASES


















   AS A PERCENTAGE OF OUTSTANDING:


















Commercial and industrial

1.76%


0.57%


0.36%


0.07%


0.81%


0.20%


0.35%


0.33%


0.44%

Real estate


















   Consumer mortgages

0.81%


0.76%


1.52%


1.49%


2.33%


2.41%


1.17%


13.34%


1.77%

   Home equity

1.08%


0.19%


0.56%


0.59%


0.65%


0.94%


0.61%


0.13%


0.67%

   Agricultural

0.92%


4.36%


0.23%


9.01%


3.03%


0.00%


0.42%


0.06%


1.93%

   Commercial and industrial-owner occupied

0.61%


2.60%


1.66%


0.92%


3.64%


4.56%


0.33%


0.83%


1.62%

   Construction, acquisition and development

7.28%


1.87%


3.02%


10.89%


14.98%


1.65%


1.11%


3.22%


4.52%

   Commercial real estate

2.69%


1.86%


1.27%


4.63%


4.44%


0.32%


0.73%


1.14%


1.94%

Credit cards

-


-


-


-


-


-


-


1.93%


1.93%

All other

0.67%


0.37%


1.06%


0.49%


0.07%


0.88%


0.68%


0.02%


0.55%

     Total loans

2.19%


1.56%


1.37%


3.47%


4.41%


1.69%


0.75%


1.34%


1.65%





































*Excludes the Greater Memphis Area.


















 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)




















September 30, 2013


Alabama








Greater










and Florida








Memphis










Panhandle


Arkansas*


Mississippi*


Missouri


Area


Tennessee*


Louisiana


Other


Total

OTHER REAL ESTATE OWNED:


















Commercial and industrial

$        251


$                -


$                -


$             -


$                -


$             -


$           -


$           -


$         251

Real estate


















   Consumer mortgages

1,886


634


1,876


-


543


186


60


108


5,293

   Home equity

442


58


-


-


-


175


-


-


675

   Agricultural

907


-


216


-


1,153


1,835


-


-


4,111

   Commercial and industrial-owner occupied

246


112


1,118


-


348


-


105


-


1,929

   Construction, acquisition and development

15,820


741


11,749


400


24,941


7,680


57


242


61,630

   Commercial real estate

352


316


569


-


980


150


140


-


2,507

All other

-


58


132


98


28


14


94


33


457

     Total loans

$    19,904


$         1,919


$       15,660


$        498


$       27,993


$    10,040


$       456


$       383


$    76,853




















Quarter Ended










Sep-13


Jun-13


Mar-13


Dec-12


Sep-12









OTHER REAL ESTATE OWNED:


















Balance, beginning of period

$    88,438


$       96,314


$     103,248


$  128,211


$     143,615









Additions to foreclosed properties


















   New foreclosed property

9,536


9,639


2,222


8,451


6,268









Reductions in foreclosed properties


















   Sales

(19,333)


(15,641)


(7,811)


(27,892)


(15,392)









   Writedowns

(1,788)


(1,874)


(1,345)


(5,522)


(6,280)









Balance, end of period

$    76,853


$       88,438


$       96,314


$  103,248


$     128,211



























FORECLOSED PROPERTY EXPENSE


















Loss (gain) on sale of other real estate owned

$        352


$            166


$          (200)


$      4,203


$            765









Writedown of other real estate owned

1,788


1,874


1,345


5,522


6,280









Other foreclosed property expense

1,158


1,205


1,209


2,266


1,749









Total foreclosed property expense

$     3,298


$         3,245


$         2,354


$    11,991


$         8,794













































*Excludes the Greater Memphis Area.


















 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)












Quarter Ended


Sep-13


Jun-13


Mar-13


Dec-12


Sep-12

NONINTEREST REVENUE:










Mortgage lending

$     5,134


$       17,892


$       12,346


$    17,188


$       13,549

Credit card, debit card and merchant fees

8,834


8,324


7,523


8,125


8,270

Deposit service charges

13,679


12,824


12,832


13,875


14,189

Trust income

3,332


3,192


3,210


3,391


3,101

Securities gains, net

(5)


3


19


152


39

Insurance commissions

23,800


25,862


26,641


20,502


23,519

Annuity fees

719


543


483


418


548

Brokerage commissions and fees

2,005


2,068


2,093


1,715


1,782

Bank-owned life insurance

1,954


2,008


1,887


1,899


1,750

Other miscellaneous income

3,062


3,393


4,284


3,636


3,673

     Total noninterest revenue

$    62,514


$       76,109


$       71,318


$    70,901


$       70,420











NONINTEREST EXPENSE:










Salaries and employee benefits

$    73,532


$       78,284


$       79,414


$    77,203


$       74,829

Occupancy, net of rental income

10,360


10,577


10,237


10,643


10,944

Equipment

4,555


4,585


4,948


5,309


5,083

Deposit insurance assessments

3,325


2,939


2,804


3,103


3,998

Voluntary early retirement expense

-


10,850


-


-


-

Amortization of bond issue cost

2,907


38


38


38


38

Advertising

1,210


1,169


743


2,045


1,081

Foreclosed property expense

3,298


3,245


2,354


11,991


8,794

Telecommunications

2,227


2,184


2,099


2,168


2,118

Public relations

1,105


1,175


1,005


1,304


1,309

Data processing

2,772


2,783


2,468


2,714


2,312

Computer software

2,190


2,146


1,963


2,031


1,856

Amortization of intangibles

686


722


743


857


860

Legal

4,626


3,896


9,366


3,133


3,004

Postage and shipping

1,027


1,074


1,135


1,117


1,060

Other miscellaneous expense

15,577


16,584


16,054


19,563


16,502

Total noninterest expense

$  129,397


$     142,251


$     135,371


$  143,219


$     133,788











INSURANCE COMMISSIONS:










Property and casualty commissions

$    18,372


$       18,762


$       16,878


$    14,968


$       17,704

Life and health commissions

4,061


5,093


4,688


4,376


4,651

Risk management income

628


573


650


581


698

Other

739


1,434


4,425


577


466

Total insurance commissions

$    23,800


$       25,862


$       26,641


$    20,502


$       23,519

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)












Quarter Ended


Sep-13


Jun-13


Mar-13


Dec-12


Sep-12

MORTGAGE SERVICING RIGHTS:










Fair value, beginning of period

$     49,001


$       41,478


$       37,882


$     34,562


$       34,167

Additions to mortgage servicing rights:










   Originations of servicing assets

3,826


4,012


4,268


5,146


5,784

Changes in fair value:










   Due to payoffs/paydowns

(1,560)


(1,739)


(1,705)


(2,005)


(2,181)

   Due to change in valuation inputs or










     assumptions used in the valuation model

(240)


5,252


1,037


183


(3,206)

   Other changes in fair value

(2)


(2)


(4)


(4)


(2)

Fair value, end of period

$     51,025


$       49,001


$       41,478


$     37,882


$       34,562











MORTGAGE LENDING REVENUE:










Origination

$       2,862


$       10,471


$         9,187


$     15,131


$       15,326

Servicing

4,072


3,908


3,827


3,879


3,610

MSR payoffs/paydowns

(1,560)


(1,739)


(1,705)


(2,005)


(2,181)

MSR valuation adjustment

(240)


5,252


1,037


183


(3,206)

Total mortgage lending revenue

$       5,134


$       17,892


$       12,346


$     17,188


$       13,549











Mortgage loans serviced

$5,543,619


$   5,393,580


$   5,236,852


$5,058,912


$   4,841,075

MSR/mtg loans serviced

0.92%


0.91%


0.79%


0.75%


0.71%











AVAILABLE-FOR-SALE SECURITIES, at fair value










U.S. Government agencies

$1,519,459


$   1,581,570


$   1,517,725


$1,401,996


$   1,472,747

Government agency issued residential










   mortgage-back securities

268,367


292,586


334,550


366,875


338,230

Government agency issued commercial










   mortgage-back securities

229,412


227,381


196,459


91,445


90,306

Obligations of states and political subdivisions

528,889


535,337


550,475


565,873


574,559

Other

8,029


8,065


7,967


7,843


7,764

Total available-for-sale securities

$2,554,156


$   2,644,939


$   2,607,176


$2,434,032


$   2,483,606

 

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





9/30/2013


6/30/2013


3/31/2013


12/31/2012


9/30/2012















Net income


$          24,857


$          20,755


$          20,805


$          16,980


$         23,825


Plus:

Provision for credit losses


500


3,000


4,000


6,000


6,000



Income tax expense


8,001


8,316


9,220


5,563


10,186


Pre-tax, pre-provision earnings


$          33,358


$          32,071


$          34,025


$          28,543


$         40,011






























Reconciliation of Tangible Assets and Tangible Shareholders' Equity to 








Total Assets and Total Shareholders' Equity:
























Quarter ended





9/30/2013


6/30/2013


3/31/2013


12/31/2012


9/30/2012


Tangible assets












Total assets


$   12,916,153


$   13,217,705


$   13,393,135


$    13,397,198


$  13,235,737


Less:  

Goodwill


275,173


275,173


275,173


275,173


275,173



Other identifiable intangible assets


15,179


15,865


16,586


17,329


17,932


Total tangible assets


$   12,625,801


$   12,926,667


$   13,101,376


$    13,104,696


$  12,942,632















Tangible shareholders' equity












Total shareholders' equity


$     1,480,611


$     1,459,793


$     1,465,180


$      1,449,052


$    1,446,703


Less:

Goodwill


275,173


275,173


275,173


275,173


275,173



Other identifiable intangible assets


15,179


15,865


16,586


17,329


17,932


Total tangible shareholders' equity


$     1,190,259


$     1,168,755


$     1,173,421


$      1,156,550


$    1,153,598















Total average assets


$   12,928,505


$   13,146,040


$   13,249,374


$    13,143,193


$  13,019,016


Total common shares outstanding


95,211,602


95,190,797


95,174,441


94,549,867


94,440,710















Tangible shareholders' equity to tangible assets*


9.43%


9.04%


8.96%


8.83%


8.91%


Return on tangible equity **


8.29%


7.12%


7.19%


5.84%


8.22%


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


1.02%


0.98%


1.04%


0.86%


1.22%


Tangible book value per share****


$           12.50


$           12.28


$           12.33


$            12.23


$          12.22




























*

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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