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BancorpSouth Announces Record Third Quarter 2019 Financial Results

TUPELO, Miss., Oct. 21, 2019 /PRNewswire/ -- BancorpSouth Bank (BXS) (the "Company") today announced financial results for the quarter ended September 30, 2019.

Highlights for the third quarter of 2019 included:

  • Reported quarterly net income of $63.8 million, or $0.63 per diluted share.
  • Completed the acquisitions of Van Alstyne Financial Corporation and Summit Financial Enterprises, Inc. effective September 1, 2019; recorded merger-related expenses of $4.1 million for the third quarter.
  • Although earnings were impacted by a negative pre-tax mortgage servicing rights ("MSR") valuation adjustment of $4.0 million, strong mortgage production volume totaling $536.1 million contributed to an increase in mortgage production and servicing revenue to $11.3 million for the third quarter.
  • Record net operating income – excluding MSR – of $69.7 million, or $0.69 per diluted share, which represents increases of 13.1 percent on a per share basis compared with the second quarter of 2019 and 23.2 percent compared with the third quarter of 2018.
  • Generated organic deposit and customer repo growth for the quarter totaling approximately $160.0 million, or 4.1 percent on an annualized basis.
  • Net interest margin – excluding accretable yield – remained relatively stable at 3.76 percent.
  • Continued strong credit quality reflected by net recoveries of $0.7 million and a provision for credit losses of $0.5 million for the quarter; non-performing and classified asset levels remained stable excluding the impact of acquired loans.
  • Operating efficiency ratio – excluding MSR – improved to 63.0 percent for the quarter.
  • Announced the signing of a definitive merger agreement with Texas First Bancshares, Inc., the parent company of Texas First State Bank, which is expected to add approximately $390 million in assets to the Company's Central Texas presence.
  • Repurchased 561,260 shares of outstanding common stock at a weighted average price of $27.04 per share.

The Company reported net income of $63.8 million, or $0.63 per diluted share, for the third quarter of 2019, compared with net income of $66.7 million, or $0.67 per diluted share, for the third quarter of 2018 and net income of $53.1 million, or $0.53 per diluted share, for the second quarter of 2019.  The Company reported net operating income – excluding MSR – of $69.7 million, or $0.69 per diluted share, for the third quarter of 2019, compared with $55.0 million, or $0.56 per diluted share, for the third quarter of 2018 and $62.0 million, or $0.61 per diluted share, for the second quarter of 2019. 

Net operating income – excluding MSR – is a non-GAAP financial measure used by management to assess the core operating performance of the Company.  This measure excludes items such as recognized securities gains and losses, MSR valuation adjustments, restructuring charges, merger-related expenses, and certain other charges. 

"Our third quarter results reflect yet another quarter of record financial performance," remarked Dan Rollins, Chairman and Chief Executive Officer.  "We are pleased to report record net operating income – excluding MSR – of $69.7 million, or $0.69 per diluted share, for the third quarter.   This success was driven by our ability to maintain a relatively stable net interest margin in a challenging rate environment while our credit quality metrics remain strong.  In addition, we continue to leverage our cost structure and improve efficiency, which is reflected in the decline in our operating efficiency ratio – excluding MSR – to 63.0 percent for the quarter.  Finally, our mortgage team had an outstanding quarter as $536.1 million in total mortgage production volume contributed to production and service revenue of over $11 million."

"We are pleased to have recently completed our mergers with Summit Bank and Texas Star Bank.  Andy Stein, Frank Hall, and the Summit team will provide us with a more meaningful presence in the Florida Panhandle while Randle Jones and the Texas Star team will enhance our market share in the Dallas MSA and surrounding markets. We anticipate completing the operational integration of these banks during the fourth quarter of this year."

Net Interest Revenue

Net interest revenue was $166.6 million for the third quarter of 2019, an increase of 17.2 percent from $142.1 million for the third quarter of 2018 and an increase of 4.1 percent from $160.0 million for the second quarter of 2019.  The fully taxable equivalent net interest margin was 3.88 percent for the third quarter of 2019, compared with 3.67 percent for the third quarter of 2018 and 3.87 percent for the second quarter of 2019.  Yields on net loans and leases were 5.16 percent for the third quarter of 2019, compared with 4.72 percent for the third quarter of 2018 and 5.12 percent for the second quarter of 2019, while yields on total interest earning assets were 4.63 percent for the third quarter of 2019, compared with 4.21 percent for the third quarter of 2018 and 4.61 percent for the second quarter of 2019.  The net interest margin, excluding accretable yield, was 3.76 percent for the third quarter of 2019, compared with 3.62 percent for the third quarter of 2018 and 3.79 percent for the second quarter of 2019 while yields on net loans and leases, excluding accretable yield, were 5.02 percent for the third quarter of 2019, compared with 4.64 percent for the third quarter of 2018 and 5.02 percent for the second quarter of 2019.  The average cost of deposits was 0.71 percent for the third quarter of 2019, compared with 0.43 percent for the third quarter of 2018 and 0.68 percent for the second quarter of 2019.

Balance Sheet Activity

Loans and leases, net of unearned income, increased $462.3 million during the third quarter of 2019.  This includes loans totaling $610.2 million acquired as a part of the Summit and Texas Star mergers on September 1, 2019.  Excluding acquired loans, total loans decreased approximately $105.0 million during the third quarter.  

Deposits increased $889.1 million during the third quarter of 2019.  This includes deposits totaling $794.2 million acquired as a part of the Summit and Texas Star mergers on September 1, 2019.  Excluding acquired deposits, total deposits increased approximately $94.9 million during the quarter. Deposits have increased $1.96 billion since December 31, 2018.  Excluding acquired deposits, total deposits increased approximately $632.6 million during the first nine months of the year, or 6.0% on an annualized basis.

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the third quarter of 2019 reflect a provision for credit losses of $0.5 million, compared with no provision for the third quarter of 2018 and $0.5 million for the second quarter of 2019.  Net recoveries for the third quarter of 2019 were $0.7 million, compared with net recoveries of $1.1 million for the third quarter of 2018 and net charge-offs of $1.3 million for the second quarter of 2019.  The allowance for credit losses was $116.9 million, or 0.83 percent of net loans and leases, at September 30, 2019, compared with $121.0 million, or 0.97 percent of net loans and leases, at September 30, 2018 and $115.7 million, or 0.85 percent of net loans and leases, at June 30, 2019.  The allowance for credit losses coverage metrics were impacted by loans acquired in the acquisitions that closed during the fourth quarter of 2018, the second quarter of 2019, and the third quarter of 2019.

Total non-performing assets were $116.0 million, or 0.82 percent of net loans and leases, at September 30, 2019, compared with $70.3 million, or 0.56 percent of net loans and leases, at September 30, 2018, and $96.0 million, or 0.70 percent of net loans and leases, at June 30, 2019.  Other real estate owned was $7.9 million at September 30, 2019, compared with $4.3 million at September 30, 2018 and $6.2 million at June 30, 2019.

Noninterest Revenue

Noninterest revenue was $75.4 million for the third quarter of 2019, compared with $71.6 million for the third quarter of 2018 and $66.3 million for the second quarter of 2019.  These results include a negative MSR valuation adjustment of $4.0 million for the third quarter of 2019, compared with a positive MSR valuation adjustment of $1.5 million for the third quarter of 2018 and a negative MSR valuation adjustment of $8.8 million for the second quarter of 2019.  Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.   

Mortgage production and servicing revenue was $11.3 million for the third quarter of 2019, compared with $5.0 million for the third quarter of 2018 and $9.2 million for the second quarter of 2019.  Mortgage origination volume for the third quarter of 2019 was $536.1 million, compared with $384.8 million for the third quarter of 2018 and $495.5 million for the second quarter of 2019.  Of the total mortgage origination volume for the third quarter of 2019, $112.1 million was portfolio loans, compared with $95.4 million for the third quarter of 2018 and $153.7 million for the second quarter of 2019.

Credit card, debit card, and merchant fee revenue was $9.8 million for the third quarter of 2019, compared with $9.9 million for the third quarter of 2018 and $10.2 million for the second quarter of 2019.  Deposit service charge revenue was $11.9 million for the third quarter of 2019, compared with $11.3 million for the third quarter of 2018 and $11.1 million for the second quarter of 2019.  Wealth management revenue was $6.7 million for the third quarter of 2019, compared with $6.0 million for the third quarter of 2018 and $5.9 million for the second quarter of 2019.  Other noninterest revenue was $8.1 million for the third quarter of 2019, compared with $6.3 million for the third quarter of 2018 and $4.8 million for the second quarter of 2019.  Insurance commission revenue was $31.5 million for the third quarter of 2019, compared with $31.7 million for the third quarter of 2018 and $34.0 million for the second quarter of 2019. 

Noninterest Expense

Noninterest expense for the third quarter of 2019 was $159.6 million, compared with $142.4 million for the third quarter of 2018 and $157.7 million for the second quarter of 2019.  Salaries and employee benefits expense was $101.2 million for the third quarter of 2019, compared with $89.6 million for the third quarter of 2018 and $101.0 million for the second quarter of 2019.  Occupancy expense was $12.3 million for the third quarter of 2019, compared with $11.7 million for the third quarter of 2018 and $12.0 million for the second quarter of 2019.  Other noninterest expense was $39.4 million for the third quarter of 2019, compared with $34.1 million for the third quarter of 2018 and $38.1 million for the second quarter of 2019.  Additionally, merger-related expense for the third quarter of 2019 was $4.1 million, compared with merger-related expense of $0.9 million for the third quarter of 2018 and $3.1 million for the second quarter of 2019. 

Capital Management

The Company's equity capitalization is comprised entirely of common stock.  The Company's ratio of shareholders' equity to assets was 12.54 percent at September 30, 2019, compared with 12.27 percent at September 30, 2018 and 12.29 percent at June 30, 2019.  The ratio of tangible shareholders' equity to tangible assets was 8.47 percent at September 30, 2019, compared with 8.96 percent at September 30, 2018 and 8.42 percent at June 30, 2019.

During the third quarter of 2019, the Company repurchased 561,260 shares of its outstanding common stock at a weighted average price of $27.04 per share pursuant to its share repurchase program, which is intended to comply with Rules 10b-18 and 10b5-1 promulgated under the Securities and Exchange Act of 1934, as amended (the "Exchange Act").  During the second quarter of 2019, the Company repurchased 611,821 shares of its outstanding common stock at a weighted average price of $28.21 per share.  As of September 30, 2019, the Company had 826,919 remaining shares available for repurchase under its current share repurchase authorization, which expires on December 31, 2019.  

Estimated regulatory capital ratios at September 30, 2019 were calculated in accordance with the Basel III capital framework.  The Company is a "well capitalized" bank, as defined by federal regulations, at September 30, 2019, with Tier 1 risk-based capital of 10.54 percent and total risk-based capital of 11.28 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification. 

Summary

Rollins concluded, "We are very pleased with our results through the first three quarters of 2019 and are optimistic about our ability to finish the year strong.  In addition to the achievements reflected in our financial results, we continue to execute on other strategic initiatives as well.  We have recently added several experienced lenders to our team in certain of our higher growth markets.  We also continue to evaluate our product offerings and implement technology enhancements as we strive to improve the customer experience.   Finally, we are excited about the recent merger announcement with Texas First State Bank.   This transaction will provide us an entry point into the Waco, Texas market while also improving our existing market share in other parts of central Texas.  We look forward to Rodney Kroll and the Texas First team officially joining our Company."

TRANSACTIONS

Texas First Bancshares, Inc.

On September 23, 2019, the Company announced the signing of a definitive merger agreement (the "Texas First Merger Agreement") with Texas First Bancshares, Inc., the parent company of Texas First State Bank, (collectively referred to as "Texas First"), pursuant to which Texas First will be merged with and into the Company (the "Texas First Merger").  Texas First operates 6 full-service banking offices in the Waco, Texas and Killeen-Temple, Texas metropolitan statistical areas ("MSA").  As of September 30, 2019, Texas First collectively reported total assets of $398.1 million, total loans of $175.6 million and total deposits of $362.7 million.  Under the terms of the Texas First Merger Agreement, the Company will issue approximately 1,065,000 shares of the Company's common stock plus $13.0 million in cash for all outstanding shares of Texas First.  For more information regarding Texas First Merger, see our Current Report on Form 8-K that was filed with the Federal Deposit Insurance Corporation ("FDIC") on September 23, 2019.  The Texas First Merger Agreement has been unanimously approved by the Boards of Directors of the Company and Texas First. Texas First has agreed to convene a meeting of its shareholders to vote upon the approval of the Texas First Merger Agreement. Subject to the satisfaction of all closing conditions, including the receipt of all required regulatory approvals, the Texas First Merger is expected to be completed during the first half of 2020, although the Company can provide no assurance that the Texas First Merger will close during this time period or at all.

Van Alstyne Financial Corporation & Summit Financial Enterprises, Inc.

On September 1, 2019, the Company completed the merger with Van Alstyne Financial Corporation and its wholly owned subsidiary, Texas Star Bank, (collectively referred to as "Texas Star"), pursuant to which Texas Star was merged with and into the Company, and with Summit Financial Enterprises, Inc. and its wholly owned subsidiary, Summit Bank, (collectively referred to as "Summit"), pursuant to which Summit was merged with and into the Company.  Texas Star operated 7 full-service banking offices in Collin and Grayson counties in Texas, and one loan production office in Durant, Oklahoma, while Summit operated 4 offices located in Panama City, Panama City Beach, Fort Walton Beach, and Pensacola, Florida.  As of September 1, 2019, Texas Star and Summit collectively reported total assets of $805.2 million, total loans of $610.2 million and total deposits of $794.2 million.  Under the terms of the definitive merger agreements, the Company issued approximately 4,600,000 shares of the Company's common stock plus $48.2 million in cash for all outstanding shares of both institutions.  For more information regarding these transactions, see our Current Report on Form 8-K that was filed with the Federal Deposit Insurance Corporation ("FDIC") on September 3, 2019.  The purchase accounting for these transactions is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies.

Casey Bancorp, Inc. & Merchants Trust, Inc.

On April 1, 2019, the Company completed the merger with Casey Bancorp, Inc. and its wholly owned subsidiary, Grand Bank of Texas, (collectively referred to as "Grand Bank"), pursuant to which Grand Bank was merged with and into the Company, and with Merchants Trust, Inc. and its wholly owned subsidiary, Merchants Bank (collectively referred to as "Merchants"), pursuant to which Merchants was merged with and into the Company.  Grand Bank operated 4 full-service banking offices in the cities of Dallas, Grand Prairie, Horseshoe Bay and Marble Falls, all in Texas, while Merchants, which was based in Jackson, Alabama, operated 6 full-service banking offices in Clarke and Mobile counties in Alabama.  As of April 1, 2019, Grand Bank and Merchants collectively reported total assets of $566.0 million, total loans of $415.0 million and total deposits of $529.0 million.  Under the terms of the definitive merger agreements, the Company issued approximately 2,225,000 shares of the Company's common stock plus $24.2 million in cash for all outstanding shares of both institutions.  For more information regarding these transactions, see our Current Report on Form 8-K that was filed with the FDIC on April 1, 2019.  The purchase accounting for these transactions is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies.

Icon Capital Corporation

Effective October 1, 2018, the Company completed the merger with Icon Capital Corporation and its wholly owned subsidiary, Icon Bank of Texas, National Association (collectively referred to as "Icon"), pursuant to which Icon was merged with and into the Company (the "Icon Merger").  Icon was headquartered in Houston, Texas and operated 7 full-service banking offices in the Houston, Texas metropolitan area.  As of October 1, 2018, Icon, on a consolidated basis, reported total assets of $760.4 million, total loans of $650.4 million and total deposits of $675.8 million.  Under the terms of the definitive merger agreement, the Company issued approximately 4,125,000 shares of the Company's common stock plus $17.5 million in cash, $7 million of which was placed in a separate non-interest bearing escrow account that is to be paid if certain conditions are met, for all outstanding shares of Icon Capital Corporation's capital stock.  For more information regarding the Icon Merger, see our Current Report on Form 8-K that was filed with the FDIC on October 1, 2018.

Non-GAAP Measures and Ratios

This news release presents certain financial measures and ratios that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP").  A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears under the caption "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions"  beginning on page 22 of this news release.

Conference Call and Webcast

The Company will conduct a conference call to discuss its third quarter 2019 financial results on October 22, 2019, at 10:00 a.m. (Central Time).  This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing www.BancorpSouth.investorroom.com/Webcasts. The webcast will also be available in archived format at the same address.

About BancorpSouth Bank

BancorpSouth Bank (BXS) is headquartered in Tupelo, Mississippi, with approximately $20 billion in assets.  BancorpSouth operates more than 300 full service branch locations as well as additional mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.  BancorpSouth is committed to a culture of respect, diversity, and inclusion in both its workplace and communities. To learn more, visit our Community Commitment page at www.bancorpsouth.com.  Like us on Facebook; follow us on Twitter: @MyBXS; or connect with us through LinkedIn.

Forward-Looking Statements

Certain statements contained in this news release may not be based upon historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "could," "estimate," "expect," "foresee," "hope," "intend," "may," "might," "plan," "will," or "would" or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the benefits, costs, synergies and financial and operational impact of the Icon, Grand Bank, Merchants, Texas Star, Summit and Texas First Mergers (referred to collectively as the "Mergers") on the Company, the acceptance by customers of Icon, Grand Bank, Merchants, Texas Star, Summit and Texas First of the Company's products and services after the closing of the Mergers, the opportunities to enhance market share in certain markets and market acceptance of the Company generally in new markets, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its Bank Secrecy Act ("BSA") and anti-money laundering ("AML") compliance program and its fair lending compliance program, the Company's compliance with the consent order it entered into with the Consumer Financial Protection Bureau and the United States Department of Justice related to the Company's fair lending practices (the "Consent Order"), the impact of the Tax Cuts and Jobs Act of 2017 on the Company and its operations and financial performance, amortization expense for intangible assets, goodwill impairments, loan impairments, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue, fair value determinations, the amount of the Company's non-performing loans and leases, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company's reserve for losses from representation and warranty obligations, the Company's foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, the impact of interest rates on loan yields, calculation of economic value of equity, impaired loan charge-offs, diversification of the Company's revenue stream, the growth of the Company's insurance business and commission revenue, the growth of the Company's customer base and loan, deposit and fee revenue sources, liquidity needs and strategies, the ability of the Company to access successfully the capital and credit markets when needed or as desired, sources of funding, net interest margin, declaration and payment of dividends, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, improvement in the Company's efficiencies, operating expense trends, future acquisitions, dispositions and other strategic growth opportunities and initiatives and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters.

The Company cautions readers not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors. These factors may include, but are not limited to, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program and its fair lending compliance program, the Company's ability to successfully implement and comply with the Consent Order, the ability of the Company to meet expectations regarding the benefits, costs, synergies, and financial and operational impact of the Mergers, the possibility that any of the anticipated benefits, costs, synergies and financial and operational improvements of the Mergers will not be realized or will not be realized as expected, the ability of the Company and Texas First to complete the Texas First Merger, the ability of the Company and Texas First to satisfy the conditions to the completion of the Texas First Merger, including the receipt of all regulatory approvals required for the Texas First Merger on the terms expected in the Texas First Merger Agreement, the ability of the Company and Texas First to meet expectations regarding the timing, completion and accounting and tax treatments of the Texas First Merger, the possibility that any of the anticipated benefits of the Texas First Merger will not be realized or will not be realized as expected, the failure of the Texas First Merger to close for any other reason, the effect of any announcements regarding the Texas First Merger on the Company's operating results, the possibility that the Texas First Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events, the lack of availability of the Company's filings mandated by the Exchange Act from the Securities and Exchange Commission's publicly available website after November 1, 2017, the impact of any ongoing pending or threatened litigation, administrative and investigatory matters involving the Company, conditions in the financial markets and economic conditions generally, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, limitations on the Company's ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Act, and supervision of the Company's operations, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic and environmental conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of the Tax Cuts and Jobs Act of 2017 on the Company and its operations and financial performance, the impact of the loss of any key Company personnel, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the growth of the Company's insurance business and commission revenue, the growth of the Company's loan, deposit and fee revenue sources, 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, dispositions and other strategic growth opportunities and initiatives, 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, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, other factors generally understood to affect the assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies and other factors detailed from time to time in the Company's press and news releases, reports and other filings with the Federal Deposit Insurance Corporation. Forward-looking statements speak only as of the date that they were made, and, except as required by law, the Company does not undertake any obligation to update or revise forward-looking statements to reflect events or circumstances that occur after the date of this news release.

BancorpSouth Bank

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)


















Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Year to Date

Year to Date


9/30/2019

6/30/2019

3/31/2019

12/31/2018

9/30/2018

9/30/2019

9/30/2018

Earnings Summary:








Interest revenue

$                    199,004

$                    191,063

$                    181,133

$                    178,850

$                    163,158

$            571,200

$            474,643

Interest expense

32,405

31,046

28,579

25,969

21,023

92,030

52,302

Net interest revenue

166,599

160,017

152,554

152,881

142,135

479,170

422,341

Provision for credit losses

500

500

500

1,000

-

1,500

3,500

Net interest revenue, after provision








   for credit losses

166,099

159,517

152,054

151,881

142,135

477,670

418,841

Noninterest revenue

75,432

66,332

64,220

59,031

71,616

205,984

223,006

Noninterest expense

159,614

157,674

149,968

152,342

142,409

467,256

435,292

Income before income taxes

81,917

68,175

66,306

58,570

71,342

216,398

206,555

Income tax expense

18,160

15,118

14,708

11,473

4,659

47,986

32,335

Net income

$                      63,757

$                      53,057

$                      51,598

$                      47,097

$                      66,683

$            168,412

$            174,220









Balance Sheet - Period End Balances








Total assets

$               19,850,225

$               18,936,814

$               18,314,183

$               18,001,540

$               17,249,175

$       19,850,225

$       17,249,175

Total earning assets

17,619,053

16,948,009

16,426,872

16,144,098

15,594,549

17,619,053

15,594,549

Total securities

2,766,446

2,760,732

2,692,499

2,749,188

2,826,359

2,766,446

2,826,359

Loans and leases, net of unearned income

14,120,783

13,658,527

13,071,059

13,112,149

12,449,995

14,120,783

12,449,995

Allowance for credit losses

116,908

115,691

116,499

120,070

121,019

116,908

121,019

Net book value of acquired loans (included in loans and leases above)

1,844,245

1,421,303

1,191,673

1,310,089

835,939

1,844,245

835,939

Remaining loan mark on acquired loans

53,948

38,408

30,782

37,366

13,368

53,948

13,368

Total deposits

16,025,756

15,136,648

14,692,609

14,069,966

13,347,193

16,025,756

13,347,193

Long-term debt

5,161

5,271

5,503

6,213

33,182

5,161

33,182

Total shareholders' equity

2,489,427

2,327,120

2,226,585

2,205,737

2,116,375

2,489,427

2,116,375









Balance Sheet - Average Balances








Total assets

$               19,170,926

$               18,637,258

$               18,033,513

$               17,879,081

$               17,059,865

$       18,618,066

$       17,024,756

Total earning assets

17,148,574

16,693,115

16,156,235

16,056,656

15,465,260

16,669,610

15,445,534

Total securities

2,738,691

2,733,335

2,704,383

2,784,437

2,814,751

2,725,595

2,895,410

Loans and leases, net of unearned income

13,726,755

13,549,591

13,078,221

13,063,422

12,433,701

13,453,898

12,285,440

Total deposits

15,509,511

15,080,885

14,445,834

14,072,416

13,387,849

15,015,973

13,496,251

Long-term debt

5,303

5,403

5,826

17,403

33,196

5,509

33,588

Total shareholders' equity

2,378,882

2,298,512

2,212,748

2,191,852

2,089,746

2,297,322

2,051,561









Nonperforming Assets:








Non-accrual loans and leases

$                      76,383

$                      71,076

$                      68,949

$                      70,555

$                      55,532

$              76,383

$              55,532

Loans and leases 90+ days past due, still accruing

16,659

8,053

8,471

18,695

2,934

16,659

2,934

Restructured loans and leases, still accruing

15,033

10,676

9,874

7,498

7,564

15,033

7,564

Non-performing loans (NPLs)

108,075

89,805

87,294

96,748

66,030

108,075

66,030

Other real estate owned

7,929

6,179

9,686

9,276

4,301

7,929

4,301

Non-performing assets (NPAs)

$                    116,004

$                      95,984

$                      96,980

$                    106,024

$                      70,331

$            116,004

$              70,331









Financial Ratios and Other Data:








Return on average assets

1.32%

1.14%

1.16%

1.05%

1.55%

1.21%

1.37%

Operating return on average assets-excluding MSR*

1.44%

1.33%

1.26%

1.25%

1.28%

1.35%

1.29%

Return on average shareholders' equity

10.63%

9.26%

9.46%

8.52%

12.66%

9.80%

11.35%

Operating return on average shareholders' equity-excluding MSR*

11.63%

10.82%

10.24%

10.20%

10.45%

10.92%

10.71%

Return on tangible equity*

15.75%

13.94%

14.16%

12.81%

17.76%

14.02%

15.64%

Operating return on tangible equity-excluding MSR*

17.22%

16.28%

15.34%

15.33%

14.66%

15.61%

14.75%

Noninterest income to average assets

1.56%

1.43%

1.44%

1.31%

1.67%

1.48%

1.75%

Noninterest expense to average assets

3.30%

3.39%

3.37%

3.38%

3.31%

3.36%

3.42%

Net interest margin-fully taxable equivalent

3.88%

3.87%

3.86%

3.80%

3.67%

3.87%

3.68%

Net interest margin-fully taxable equivalent, excluding net accretion








  on acquired loans and leases

3.76%

3.79%

3.74%

3.71%

3.62%

3.76%

3.62%

Net interest rate spread

3.56%

3.56%

3.56%

3.53%

3.43%

3.56%

3.49%

Efficiency ratio (tax equivalent)*

65.68%

69.36%

68.85%

71.52%

66.29%

67.90%

67.11%

Operating efficiency ratio-excluding MSR (tax equivalent)*

63.01%

65.46%

66.89%

66.86%

66.34%

65.07%

66.52%

Loan/deposit ratio

88.11%

90.23%

88.96%

93.19%

93.28%

88.11%

93.28%

Price to earnings multiple (avg)

13.77

13.26

16.60

11.67

15.07

13.77

15.07

Market value to book value

124.62%

125.60%

125.56%

118.27%

152.23%

124.62%

152.23%

Market value to book value (avg)

120.12%

125.47%

132.05%

131.34%

158.19%

122.35%

155.72%

Market value to tangible book value

193.15%

191.45%

189.14%

178.79%

216.28%

193.15%

216.28%

Market value to tangible book value (avg)

186.17%

191.25%

198.92%

198.55%

224.75%

189.63%

221.24%

Employee FTE

4,674

4,581

4,370

4,445

4,270

4,674

4,270









*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 22 and 23.


 

BancorpSouth Bank

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)


















Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Year to Date

Year to Date


9/30/2019

6/30/2019

3/31/2019

12/31/2018

9/30/2018

9/30/2019

9/30/2018









Credit Quality Ratios:








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

(0.02%)

0.04%

0.12%

0.06%

(0.04%)

0.05%

0.01%

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

0.01%

0.01%

0.02%

0.03%

0.00%

0.01%

0.04%

Allowance for credit losses to net loans and leases

0.83%

0.85%

0.89%

0.92%

0.97%

0.83%

0.97%

Allowance for credit losses to net loans and leases, excluding acquired loans and leases

0.95%

0.95%

0.98%

1.02%

1.04%

0.95%

1.04%

Allowance for credit losses to non-performing loans and leases

108.17%

128.83%

133.46%

124.11%

183.28%

108.17%

183.28%

Allowance for credit losses to non-performing assets

100.78%

120.53%

120.13%

113.25%

172.07%

100.78%

172.07%

Non-performing loans and leases to net loans and leases

0.77%

0.66%

0.67%

0.74%

0.53%

0.77%

0.53%

Non-performing assets to net loans and leases

0.82%

0.70%

0.74%

0.81%

0.56%

0.82%

0.56%









Equity Ratios:








Total shareholders' equity to total assets

12.54%

12.29%

12.16%

12.25%

12.27%

12.54%

12.27%

Tangible shareholders' equity to tangible assets*

8.47%

8.42%

8.41%

8.46%

8.96%

8.47%

8.96%

















Capital Adequacy:








Common  Equity Tier 1 capital

10.54%

10.52%

10.75%

10.84%

11.71%

10.54%

11.71%

Tier 1 capital

10.54%

10.52%

10.75%

10.84%

11.71%

10.54%

11.71%

Total capital

11.28%

11.28%

11.55%

11.68%

12.60%

11.28%

12.60%

Tier 1 leverage capital

9.14%

8.96%

9.03%

9.06%

9.68%

9.14%

9.68%

   Estimated for current quarter
















Common Share Data:








Basic earnings per share

$                          0.63

$                          0.53

$                          0.52

$                          0.47

$                          0.68

1.68

$                  1.76

Diluted earnings per share

0.63

0.53

0.52

0.47

0.67

1.67

1.76

Operating earnings per share*

0.66

0.55

0.52

0.51

0.57

1.73

1.72

Operating earnings per share- excluding MSR*

0.69

0.61

0.56

0.57

0.56

1.86

1.67

Cash dividends per share

0.19

0.17

0.17

0.17

0.17

0.53

0.45

Book value per share

23.76

23.12

22.48

22.10

21.48

23.76

21.48

Tangible book value per share*

15.33

15.17

14.92

14.62

15.12

15.33

15.12

Market value per share (last)

29.61

29.04

28.22

26.14

32.70

29.61

32.70

Market value per share (high)

30.54

31.10

33.45

33.50

35.40

33.45

35.55

Market value per share (low)

26.47

26.92

25.76

24.31

32.45

25.76

30.60

Market value per share (avg)

28.54

29.01

29.68

29.03

33.98

29.07

33.45

Dividend payout ratio

29.36%

32.24%

32.78%

35.93%

25.15%

31.31%

25.51%

Total shares outstanding

104,775,876

100,651,798

99,066,856

99,797,271

98,525,516

104,775,876

98,525,516

Average shares outstanding - basic

101,168,730

100,610,746

99,506,952

99,541,965

98,646,087

100,428,809

98,772,832

Average shares outstanding - diluted

101,493,247

100,888,164

99,717,119

99,720,219

98,819,905

100,699,510

98,939,743

















Yield/Rate:








(Taxable equivalent basis)








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

5.16%

5.12%

5.09%

4.94%

4.72%

5.13%

4.66%

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








  net accretion on acquired loans and leases

5.02%

5.02%

4.95%

4.83%

4.64%

4.99%

4.58%

Available-for-sale securities:








  Taxable

2.13%

2.10%

2.04%

1.92%

1.80%

2.09%

1.76%

  Tax-exempt

5.56%

4.53%

4.63%

4.47%

4.40%

4.85%

4.36%

Short-term, FHLB and other equity investments

2.41%

2.52%

2.67%

2.84%

2.04%

2.50%

1.78%

  Total interest earning assets and revenue

4.63%

4.61%

4.57%

4.45%

4.21%

4.61%

4.14%

Deposits

0.71%

0.68%

0.63%

0.52%

0.43%

0.68%

0.36%

  Demand - interest bearing

0.94%

0.91%

0.85%

0.70%

0.59%

0.90%

0.46%

  Savings

0.28%

0.29%

0.30%

0.30%

0.24%

0.29%

0.17%

  Other time

1.67%

1.60%

1.46%

1.26%

1.06%

1.58%

0.97%

Short-term borrowings

1.90%

2.14%

2.16%

2.06%

1.79%

2.07%

1.58%

Total interest bearing deposits and short-term borrowings

1.07%

1.06%

1.01%

0.91%

0.77%

1.04%

0.64%

Long-term debt

4.93%

4.87%

4.88%

4.12%

4.06%

4.89%

4.11%

  Total interest bearing liabilities and expense

1.07%

1.06%

1.01%

0.92%

0.78%

1.05%

0.65%

Interest bearing liabilities to interest earning assets

70.15%

70.47%

71.15%

69.79%

69.12%

70.58%

70.09%

Net interest tax equivalent adjustment

$                           972

$                           974

$                        1,035

$                        1,088

$                        1,088

$                2,982

$                3,302









*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 22 and 23.



 

BancorpSouth Bank

Consolidated Balance Sheets

(Unaudited)








Sep-19

Jun-19

Mar-19

Dec-18

Sep-18


(Dollars in thousands)

Assets






Cash and due from banks

$                333,108

$                212,080

$                207,486

$                239,960

$                169,493

Interest bearing deposits with other banks






and Federal funds sold

466,650

314,172

490,667

92,476

138,677

Available-for-sale securities, at fair value

2,766,446

2,760,732

2,692,499

2,749,188

2,826,359

Loans and leases

14,137,563

13,674,990

13,086,801

13,129,012

12,464,877

  Less:  Unearned income

16,780

16,463

15,742

16,863

14,882

             Allowance for credit losses

116,908

115,691

116,499

120,070

121,019

Net loans and leases

14,003,875

13,542,836

12,954,560

12,992,079

12,328,976

Loans held for sale

229,514

175,898

138,379

140,300

132,080

Premises and equipment, net

480,819

447,564

432,540

361,859

342,947

Accrued interest receivable

62,818

60,598

59,038

57,054

56,369

Goodwill

822,093

734,473

699,073

695,720

590,292

Other identifiable intangibles

61,100

65,930

49,396

50,896

36,475

Bank owned life insurance

328,670

315,398

305,315

308,324

304,687

Other real estate owned

7,929

6,179

9,686

9,276

4,301

Other assets

287,203

300,954

275,544

304,408

318,519

Total Assets

$           19,850,225

$           18,936,814

$           18,314,183

$           18,001,540

$           17,249,175

Liabilities






Deposits:






  Demand:  Noninterest bearing

$             4,770,907

$             4,329,172

$             4,201,695

$             4,124,744

$             4,007,158

                  Interest bearing

6,745,329

6,511,332

6,353,731

5,898,851

5,535,689

  Savings

1,898,813

1,861,247

1,855,024

1,836,167

1,783,602

  Other time

2,610,707

2,434,897

2,282,159

2,210,204

2,020,744

Total deposits

16,025,756

15,136,648

14,692,609

14,069,966

13,347,193

Securities sold under agreement to repurchase

529,788

439,541

481,567

416,008

403,724

Federal funds purchased






   and other short-term borrowing

480,000

730,000

630,000

1,095,000

1,095,000

Accrued interest payable

13,120

12,225

9,718

8,543

7,330

Long-term debt

5,161

5,271

5,503

6,213

33,182

Other liabilities

306,973

286,009

268,201

200,073

246,371

Total Liabilities

17,360,798

16,609,694

16,087,598

15,795,803

15,132,800

Shareholders' Equity






Common stock

261,940

251,629

247,667

249,493

246,314

Capital surplus

611,115

506,201

462,256

484,482

439,590

Accumulated other comprehensive loss

(50,538)

(53,252)

(69,924)

(80,491)

(91,650)

Retained earnings

1,666,910

1,622,542

1,586,586

1,552,253

1,522,121

Total Shareholders' Equity

2,489,427

2,327,120

2,226,585

2,205,737

2,116,375

Total Liabilities & Shareholders' Equity

$           19,850,225

$           18,936,814

$           18,314,183

$           18,001,540

$           17,249,175































 

 

BancorpSouth Bank

Consolidated Average Balance Sheets

(Unaudited)








Sep-19

Jun-19

Mar-19

Dec-18

Sep-18


(Dollars in thousands)

Assets






Cash and due from banks

$                229,814

$                202,564

$                213,415

$                218,553

$                179,098

Interest bearing deposits with other banks






and Federal funds sold

486,716

254,951

238,194

62,516

57,204

Available-for-sale securities, at fair value

2,738,691

2,733,335

2,704,383

2,784,437

2,814,751

Loans and leases

13,743,876

13,565,632

13,094,817

13,079,321

12,448,814

  Less:  Unearned income

17,121

16,041

16,596

15,899

15,113

             Allowance for credit losses

116,232

116,339

118,352

120,426

120,678

Net loans and leases

13,610,523

13,433,252

12,959,869

12,942,996

12,313,023

Loans held for sale

157,691

117,995

86,294

96,588

112,387

Premises and equipment, net

458,758

453,239

430,675

372,488

340,456

Accrued interest receivable

57,941

54,977

54,296

54,156

50,437

Goodwill

761,084

735,540

695,787

668,544

588,777

Other identifiable intangibles

59,253

49,058

50,115

47,567

37,529

Bank owned life insurance

319,894

313,550

306,134

305,888

305,476

Other real estate owned

6,908

7,313

9,555

15,048

6,245

Other assets

283,653

281,484

284,796

310,300

254,482

Total Assets

$           19,170,926

$           18,637,258

$           18,033,513

$           17,879,081

$           17,059,865

Liabilities






Deposits:






  Demand:  Noninterest bearing

$             4,479,698

$             4,307,570

$             4,078,027

$             4,284,521

$             4,076,890

                  Interest bearing

6,655,962

6,485,523

6,283,089

5,753,655

5,495,517

  Savings

1,869,045

1,872,552

1,837,197

1,836,148

1,794,229

  Other time

2,504,806

2,415,240

2,247,521

2,198,092

2,021,213

Total deposits

15,509,511

15,080,885

14,445,834

14,072,416

13,387,849

Securities sold under agreement to repurchase

507,558

484,950

457,875

447,727

427,583

Federal funds purchased






   and other short-term borrowing

487,456

499,385

664,056

953,137

918,153

Accrued interest payable

13,756

12,239

9,998

8,305

6,617

Long-term debt

5,303

5,403

5,826

17,403

33,196

Other liabilities

268,460

255,884

237,176

188,241

196,721

Total Liabilities

16,792,044

16,338,746

15,820,765

15,687,229

14,970,119

Shareholders' Equity






Common stock

254,881

252,351

248,810

250,752

246,635

Capital surplus

538,665

511,786

475,390

497,330

441,779

Accumulated other comprehensive loss

(52,204)

(66,048)

(78,255)

(91,541)

(89,244)

Retained earnings

1,637,540

1,600,423

1,566,803

1,535,311

1,490,576

Total Shareholders' Equity

2,378,882

2,298,512

2,212,748

2,191,852

2,089,746

Total Liabilities & Shareholders' Equity

$           19,170,926

$           18,637,258

$           18,033,513

$           17,879,081

$           17,059,865

 

 

BancorpSouth Bank

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)
















Quarter Ended


Year to Date


Sep-19


Jun-19


Mar-19


Dec-18


Sep-18


Sep-19


Sep-18

INTEREST REVENUE:














Loans and leases

$      178,729


$     172,748


$        163,679


$      162,237


$     147,404


$    515,156


$    427,001

Deposits with other banks

2,456


1,292


1,516


457


243


5,264


1,238

Federal funds sold, securities purchased














   under agreement to resell, FHLB and 














      other equity investments

735


542


374


344


295


1,651


712

Available-for-sale securities:














    Taxable

13,759


13,223


12,437


12,208


11,529


39,419


34,396

    Tax-exempt

1,883


1,890


2,121


2,308


2,394


5,894


7,333

Loans held for sale

1,442


1,368


1,006


1,296


1,293


3,816


3,963

        Total interest revenue

199,004


191,063


181,133


178,850


163,158


571,200


474,643















INTEREST EXPENSE:














Interest bearing demand

15,689


14,741


13,139


10,191


8,113


43,569


19,466

Savings

1,341


1,348


1,338


1,367


1,087


4,027


2,338

Other time

10,546


9,635


8,065


6,967


5,399


28,246


14,718

Federal funds purchased and securities sold














   under agreement to repurchase

1,857


1,972


1,775


2,563


2,071


5,604


5,310

Short-term and long-term debt

2,971


3,349


4,262


4,880


4,353


10,582


10,468

Other

1


1


-


1


-


2


2

        Total interest expense

32,405


31,046


28,579


25,969


21,023


92,030


52,302















        Net interest revenue

166,599


160,017


152,554


152,881


142,135


479,170


422,341

  Provision for credit losses

500


500


500


1,000


-


1,500


3,500

        Net interest revenue, after provision for














          credit losses

166,099


159,517


152,054


151,881


142,135


477,670


418,841















NONINTEREST REVENUE:














Mortgage banking

7,289


351


2,040


(3,275)


6,517


9,680


26,686

Credit card, debit card and merchant fees

9,778


10,168


8,874


9,941


9,857


28,820


29,951

Deposit service charges

11,939


11,117


10,766


11,699


11,278


33,822


32,946

Security gains(losses), net

117


59


39


162


(54)


215


(29)

Insurance commissions

31,512


33,951


30,180


27,981


31,705


95,643


93,800

Wealth management

6,651


5,906


5,635


5,534


6,016


18,192


17,458

Other

8,146


4,780


6,686


6,989


6,297


19,612


22,194

        Total noninterest revenue

75,432


66,332


64,220


59,031


71,616


205,984


223,006















NONINTEREST EXPENSE:














Salaries and employee benefits

101,154


100,981


97,228


92,013


89,646


299,363


272,294

Occupancy, net of rental income

12,323


11,988


11,551


12,107


11,690


35,862


33,597

Equipment

4,676


4,423


3,888


3,837


3,994


12,987


11,552

Deposit insurance assessments

2,038


2,165


2,740


1,866


2,954


6,943


8,443

Other

39,423


38,117


34,561


42,519


34,125


112,101


109,406

        Total noninterest expense

159,614


157,674


149,968


152,342


142,409


467,256


435,292

        Income before income taxes

81,917


68,175


66,306


58,570


71,342


216,398


206,555

Income tax expense

18,160


15,118


14,708


11,473


4,659


47,986


32,335

        Net income

$        63,757


$       53,057


$          51,598


$        47,097


$       66,683


$    168,412


$    174,220















Net income per share: Basic

$            0.63


$           0.53


$              0.52


$            0.47


$           0.68


$          1.68


$          1.76

                                    Diluted

$            0.63


$           0.53


$              0.52


$            0.47


$           0.67


$          1.67


$          1.76


 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Sep-19


Jun-19


Mar-19


Dec-18


Sep-18

LOAN AND LEASE PORTFOLIO:










Commercial and industrial










   Commercial and industrial-non real estate

1,887,817


1,832,016


1,728,897


$    1,766,515


$    1,617,293

   Commercial and industrial-owner occupied

2,276,338


2,157,292


2,128,763


2,267,902


2,157,177

      Total commercial and industrial

4,164,155


3,989,308


3,857,660


4,034,417


3,774,470

Commercial real estate










   Agricultural

347,866


332,902


309,931


318,038


315,842

   Construction, acquisition and development

1,538,073


1,441,269


1,322,671


1,286,786


1,103,532

   Commercial real estate

3,345,166


3,287,453


3,169,117


3,026,214


2,923,791

      Total commercial real estate

5,231,105


5,061,624


4,801,719


4,631,038


4,343,165

Consumer










   Consumer mortgages

3,519,449


3,422,661


3,242,769


3,259,390


3,184,674

   Home equity

678,294


670,352


663,120


663,572


655,213

   Credit cards

101,213


101,024


99,260


105,569


102,353

      Total consumer

4,298,956


4,194,037


4,005,149


4,028,531


3,942,240

All other

426,567


413,558


406,531


418,163


390,120

      Total loans

$  14,120,783


$  13,658,527


$  13,071,059


$  13,112,149


$  12,449,995











ALLOWANCE FOR CREDIT LOSSES:










Balance, beginning of period

$      115,691


$      116,499


$      120,070


$       121,019


$      119,920











Loans and leases charged-off:










Commercial and industrial










   Commercial and industrial-non real estate

(218)


(866)


(819)


(1,042)


(322)

   Commercial and industrial-owner occupied

(65)


-


-


(237)


(315)

     Total commercial and industrial

(283)


(866)


(819)


(1,279)


(637)

Commercial real estate










   Agricultural

-


-


-


(6)


(6)

   Construction, acquisition and development

-


(45)


-


(142)


(41)

   Commercial real estate

(49)


(250)


(3,815)


(594)


-

     Total commercial real estate

(49)


(295)


(3,815)


(742)


(47)

Consumer










   Consumer mortgages

(255)


(237)


(185)


(298)


(210)

   Home equity

(39)


(124)


(353)


(237)


(227)

   Credit cards

(631)


(922)


(955)


(816)


(596)

     Total consumer

(925)


(1,283)


(1,493)


(1,351)


(1,033)

All other

(895)


(912)


(831)


(761)


(941)

     Total loans charged-off

(2,152)


(3,356)


(6,958)


(4,133)


(2,658)











Recoveries:










Commercial and industrial










   Commercial and industrial-non real estate

835


747


360


504


1,558

   Commercial and industrial-owner occupied

49


71


100


40


413

     Total commercial and industrial

884


818


460


544


1,971

Commercial real estate










   Agricultural

3


10


4


304


20

   Construction, acquisition and development

480


63


714


197


564

   Commercial real estate

29


218


78


139


200

     Total commercial real estate

512


291


796


640


784

Consumer










   Consumer mortgages

278


244


1,081


419


522

   Home equity

731


179


75


86


58

   Credit cards

224


223


218


245


198

     Total consumer

1,233


646


1,374


750


778

All other

240


293


257


250


224

     Total recoveries

2,869


2,048


2,887


2,184


3,757











Net recoveries(charge-offs) 

717


(1,308)


(4,071)


(1,949)


1,099











Provision charged to operating expense

500


500


500


1,000


-

Balance, end of period

$      116,908


$      115,691


$      116,499


$       120,070


$      121,019











Average loans for period

$ 13,726,755


$ 13,549,591


$ 13,078,221


$ 13,063,422


$ 12,433,701











Ratio:










Net (recoveries) charge-offs to average loans (annualized)

(0.02%)


0.04%


0.12%


0.06%

...