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BancorpSouth Announces First Quarter 2014 Earnings of $28.4 Million or $0.30 per Diluted Share

TUPELO, Miss., April 21, 2014 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended March 31, 2014.

Highlights for the first quarter of 2014 included:

  • Net income of $28.4 million or $0.30 per diluted share.
  • Announced the signing of definitive merger agreements with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as "OIB"), headquartered in Monroe, Louisiana, and Central Community Corporation, parent company of First State Bank Central Texas (collectively referred to as "First State Bank"), headquartered in Temple, Texas.
  • Generated net loan growth of $110.4 million, or 5.0 percent annualized, which represents the fourth consecutive quarter of net loan growth.
  • Reported deposit growth of $38.0 million, or 1.4 percent annualized.
  • Produced $31.6 million of insurance commission revenue, which represents the highest level of quarterly insurance commission revenue in the Company's history.
  • Continued progress toward reducing non-interest expenses.
  • Net interest margin remained stable at 3.54 percent compared with 3.52 percent for the fourth quarter of 2013.
  • Non-performing loans and leases ("NPLs") declined $27.2 million, or 22.5 percent, compared to the fourth quarter of 2013, while non-performing assets ("NPAs") decreased $32.9 million, or 17.3 percent, over the same period.

The Company reported net income of $28.4 million, or $0.30 per diluted share, for the first quarter of 2014 compared with net income of $20.8 million, or $0.22 per diluted share, for the first quarter of 2013 and net income of $27.7 million, or $0.29 per diluted share, for the fourth quarter of 2013. 

"Our financial results continue to benefit from the daily efforts of our people to grow our Company and to improve operating performance," remarked Dan Rollins, Chief Executive Officer.  "Our insurance team generated $31.6 million of commission revenue, including $3.1 million contributed by the GEM agency team in Houston, which was acquired near the end of 2013.  Even without the incremental GEM agency revenue, this is the largest quarterly amount of insurance commission revenue generated in our Company's history.  This speaks to the success of our legacy team to continue to win new business.  Our results also reflect continued positive momentum with our lending efforts.  We are pleased to report loan growth for the quarter of just over $110 million, or 5 percent on an annualized basis.  Net loan growth, combined with the benefit from the re-pricing of high cost time deposits, allowed us to continue to maintain our net interest margin at a relatively stable level." 

"We are also excited about the opportunities presented by the two bank transactions that we announced during the quarter," commented Rollins.  "OIB is a bank we have a tremendous amount of respect for in a market we already serve.  We expect to gain synergies from the footprint overlap in Monroe and Shreveport while adding a very skilled lending team that will help us grow.  First State Bank presents an opportunity to expand our footprint into Central Texas, which is a high growth market we have not previously served.  We believe both of these transactions will allow us to better leverage our existing back office and support structure."    

Earnings for the quarter reflect no recorded provision for credit losses, which is consistent with no recorded provision for the fourth quarter of 2013 and a decline from $4.0 million for the first quarter of 2013.  NPLs declined $27.2 million, or 22.5 percent, during the first quarter of 2014 to $93.3 million at March 31, 2014 compared with $120.4 million at December 31, 2013 and declined $113.8 million, or 55.0 percent, from $207.0 million at March 31, 2013.  In addition, total NPAs declined $32.9 million, or 17.3 percent, to $156.9 million at March 31, 2014 compared with $189.7 million at December 31, 2013 and declined $146.5 million, or 48.3 percent, from $303.3 million at March 31, 2013.  Net charge-offs were $3.5 million for the first quarter of 2014 compared with $0.7 million for the fourth quarter of 2013 and $5.9 million for the first quarter of 2013.

Net Interest Revenue

Net interest revenue was $101.5 million for the first quarter of 2014, an increase of 3.5 percent from $98.1 million for the first quarter of 2013 and a decrease of 0.9 percent from $102.4 million for the fourth quarter of 2013.  The fully taxable equivalent net interest margin was 3.54 percent for the first quarter of 2014 compared to 3.37 percent for the first quarter of 2013 and 3.52 percent for the fourth quarter of 2013.  Yields on loans and leases declined to 4.48 percent for the first quarter of 2014 compared with 4.70 percent for the first quarter of 2013 and 4.52 percent for the fourth quarter of 2013, while yields on total interest earning assets were relatively flat at 3.85 percent for the first quarter of 2014 compared with 3.87 percent for the first quarter of 2013 and 3.86 percent for the fourth quarter of 2013.  The average cost of deposits declined to 0.31 percent for the first quarter of 2014 from 0.43 percent for the first quarter of 2013 and 0.34 percent for the fourth quarter of 2013.

Asset, Deposit and Loan Activity

Total assets were $13.1 billion at March 31, 2014 compared with $13.4 billion at March 31, 2013.  Total deposits were $10.8 billion at March 31, 2014 compared with $11.2 billion at March 31, 2013.  Loans and leases, net of unearned income, were $9.1 billion at March 31, 2014 compared with $8.6 billion at March 31, 2013. 

The decrease in time deposits of $323.1 million, or 12.8 percent, at March 31, 2014 compared to March 31, 2013 was partially offset by growth in noninterest bearing demand deposits, which increased $142.2 million, or 5.5 percent, over the same period.  Additionally, savings deposits increased $84.6 million, or 7.0 percent, while interest bearing demand deposits declined $256.8 million, or 5.3 percent, over the same period.  As of March 31, 2014, $763.4 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.53 percent. 

Provision for Credit Losses and Allowance for Credit Losses

For the first quarter of 2014, no provision for credit losses was recorded, compared with $4.0 million for the first quarter of 2013 and no provision for the fourth quarter of 2013.  Net charge-offs for the first quarter of 2014 were $3.5 million, compared with $5.9 million for the first quarter of 2013 and $0.7 million for the fourth quarter of 2013.  Recoveries of previously charged-off loans were $4.5 million for the first quarter of 2014, compared with $3.9 million for the first quarter of 2013 and $7.6 million for the fourth quarter of 2013.  Annualized net charge-offs were 0.16 percent of average loans and leases for the first quarter of 2014, compared with 0.27 percent for the first quarter of 2013 and 0.03 percent for the fourth quarter of 2013. 

NPLs were $93.3 million, or 1.03 percent of net loans and leases, at March 31, 2014, compared with $207.0 million, or 2.41 percent of net loans and leases, at March 31, 2013, and $120.4 million, or 1.34 percent of net loans and leases, at December 31, 2013.  The allowance for credit losses was $149.7 million, or 1.65 percent of net loans and leases, at March 31, 2014 compared with $162.6 million, or 1.89 percent of net loans and leases, at March 31, 2013 and $153.2 million, or 1.71 percent of net loans and leases, at December 31, 2013. 

NPLs at March 31, 2014 consisted primarily of $77.5 million of nonaccrual loans, compared with $92.2 million of nonaccrual loans at December 31, 2013.  Payments received on nonaccrual loans during the first quarter of 2014 totaled $23.2 million, compared with payments received on such loans of $25.3 million during the fourth quarter of 2013.  NPLs at March 31, 2014 also included $1.9 million of loans 90 days or more past due and still accruing, compared with $1.2 million of such loans at December 31, 2013, and included restructured loans still accruing of $13.8 million at March 31, 2014, compared with $27.0 million of such loans at December 31, 2013.  Early stage past due loans, representing loans 30-89 days past due, totaled $28.3 million at March 31, 2014 compared to $33.8 million at December 31, 2013.  

Included in nonaccrual loans at March 31, 2014 were $44.2 million of loans, or 57.0 percent of total nonaccrual loans, that were paying as agreed, compared with $48.1 million, or 52.2 percent of total nonaccrual loans, at December 31, 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 $5.7 million to $63.6 million during the first quarter of 2014 from $69.3 million at December 31, 2013.  This net decrease reflected $4.9 million of OREO added through foreclosure, offset by sales of OREO of $8.8 million.  Write-downs in the value of existing properties were $1.8 million for the first quarter of 2014 compared to $1.1 million for the fourth quarter of 2013.  Sales of OREO during the first quarter of 2014 resulted in a net loss of $0.5 million compared to a net loss of $0.9 million for the fourth quarter of 2013.  At March 31, 2014, OREO was carried at 44.5 percent of the aggregate loan balances at the time of foreclosure, compared with 43.6 percent at December 31, 2013.

Noninterest Revenue

Noninterest revenue was $66.5 million for the first quarter of 2014, compared with $71.3 million for the first quarter of 2013 and $65.1 million for the fourth quarter of 2013.  These results included a negative mortgage servicing rights ("MSR") valuation adjustment of $1.5 million for the first quarter of 2014 compared with a positive MSR valuation adjustment of $1.0 million for the first quarter of 2013 and a positive MSR valuation adjustment of $2.9 million for the fourth quarter of 2013. 

Excluding the MSR valuation adjustments, net mortgage lending revenue was $4.9 million for the first quarter of 2014, compared with $11.3 million for the first quarter of 2013 and $6.7 million for the fourth quarter of 2013.  Mortgage origination volume for the first quarter of 2014 was $197.1 million, compared with $425.9 million for the first quarter of 2013 and $222.3 million for the fourth quarter of 2013.

Credit and debit card fee revenue was $7.8 million for the first quarter of 2014, compared with $7.5 million for the first quarter of 2013 and $8.3 million for the fourth quarter of 2013.  Deposit service charge revenue was $12.5 million for the first quarter of 2014, compared with $12.8 million for the first quarter of 2013 and $13.6 million for the fourth quarter of 2013.  Insurance commission revenue was $31.6 million for the first quarter of 2014, compared with $26.6 million for the first quarter of 2013 and $21.4 million for the fourth quarter of 2013. 

Noninterest Expense

Noninterest expense for the first quarter of 2014 was $126.7 million, compared with $135.4 million for the first quarter of 2013 and $127.8 million for the fourth quarter of 2013.  Salaries and employee benefits expense was $78.9 million for the first quarter of 2014 compared to $79.4 million for the first quarter of 2013 and $75.5 million for the fourth quarter of 2013.  Foreclosed property expense was $2.6 million for the first quarter of 2014 compared with $2.4 million for the first quarter of 2013 and $2.8 million for the fourth quarter of 2013.  Deposit insurance assessments were $1.6 million for the first quarter of 2014 compared to $2.8 million for the first quarter of 2013 and $2.7 million for the fourth quarter of 2013.  Additionally, noninterest expense for the first quarter of 2014 included $0.6 million of merger related expenses.  Noninterest expense for the first quarter of 2013 included a pre-tax charge of $6.8 million to increase the litigation accrual related to probable losses associated with various legal proceedings.   

Capital Management

BancorpSouth is a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 13.18 percent at March 31, 2014 and total risk based capital of 14.44 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 11.83 percent at March 31, 2014, compared with 10.94 percent at March 31, 2013 and 11.61 percent at December 31, 2013.  The ratio of tangible shareholders' equity to tangible assets was 9.69 percent at March 31, 2014, compared with 8.96 percent at March 31, 2013 and 9.44 percent at December 31, 2013.

Recent Transaction Announcements

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

On January 8, 2014, the Company announced the signing of a definitive merger agreement with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as "OIB"), headquartered in Monroe, Louisiana, pursuant to which Ouachita Bancshares Corp. will be merged with and into the Company.  OIB operates 12 full-service banking offices along the I-20 corridor and has loan production offices in Madison, Mississippi and Natchitoches, Louisiana.  As of December 31, 2013, OIB, on a consolidated basis, reported total assets of $652.5 million, total loans of $477.8 million and total deposits of $549.7 million.  Under the terms of the definitive agreement, the Company will issue a maximum of 3,675,000 shares of the Company's common stock plus $22.875 million in cash for all outstanding shares of Ouachita Bancshares Corp.'s capital stock, subject to certain conditions and potential adjustments.  The terms of the agreement provide for a collar with respect to the total deal value ranging from $99 million to $112 million.  The merger has been unanimously approved by the Board of Directors of each company and was approved by OIB shareholders on April 8, 2014.  The transaction is expected to close shortly after receiving all required regulatory approvals.

On January 21, 2014, the Company announced the signing of a definitive merger agreement with Central Community Corporation, headquartered in Temple, Texas, pursuant to which Central Community Corporation will be merged with and into the Company.  Central Community Corporation is the parent company of First State Bank Central Texas ("First State Bank"), which is headquartered in Austin, Texas.  First State Bank operates 31 full-service banking offices in central Texas.  As of December 31, 2013, Central Community Corporation, on a consolidated basis, reported total assets of $1.3 billion, total loans of $555.5 million and total deposits of $1.1 billion.  Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company's common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation's capital stock, subject to certain conditions and potential adjustments.  The merger has been unanimously approved by the Board of Directors of each company.  The transaction is subject to certain conditions, including the approval by Central Community Corporation's shareholders and receipt of all required regulatory approvals.

On April 9, 2014, BancorpSouth Insurance Services, Inc. announced the acquisition of the assets of Lafayette, Louisiana based Knox Insurance Group, LLC.  Knox was formed in 1972 and currently produces annual revenues of approximately $3 millionKnox will continue to operate under current leadership in its current location in Lafayette.

Summary

Rollins concluded, "We believe that the financial results for the first quarter and the transaction announcements that we have made reflect progress towards the goals that have been communicated.  We were able to reduce total non-interest expense for the third consecutive quarter, despite seasonally high personnel-related costs as well as the addition of the GEM team at the end of 2013.  With that said, we still have a lot of work to do to improve our legacy core expense base.  Our lending group produced net loan growth for the fourth consecutive quarter and our insurance team reported record performance.  Additionally, we anticipate that the recent transactions that have been announced, both the bank and the insurance businesses, will provide us with additional resources to achieve our growth goals while also allowing us to better leverage our current operating structure." 

Conference Call

BancorpSouth will conduct a conference call to discuss its first quarter 2014 results on April 22, 2014, at 10:00 a.m. (Central Time).  Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com.  A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.

About BancorpSouth, Inc.

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.1 billion in assets.  BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 292 commercial banking, mortgage, and insurance locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.

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

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

Forward-Looking Statements

Certain statements contained in this news release may not be based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "may," "might," "will," "would," "could" or "intend."  These forward-looking statements include, without limitation, statements relating to non-accrual loans, revenue estimates for the Company's operations in Houston, Texas following the closing of the transaction with GEM, the terms and closing of the proposed transactions with Ouachita Bancshares Corp. and Central Community Corporation, acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company's products and services, the retention of key personnel, Knox's continued operations, the opportunities to enhance market share in certain markets and market acceptance of the Company generally in new markets, the impact of cost-saving initiatives, our ability to improve efficiency, and our use of non-GAAP financial measures.

We caution you not to place undue reliance on the forward-looking statements contained in this news release in that actual results could differ materially from those indicated in such forward-looking statements because of a variety of factors.  These factors may include, but are not limited to, the ability to obtain required regulatory approval for the OIB merger and shareholder and regulatory approvals for the First State Bank merger, the ability of the Company, Ouachita Bancshares Corp. and Central Community  Corp. to close the mergers, the ability of the Company to retain key personnel after the pending mergers and the Knox acquisition, 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



3/31/2014

12/31/2013

9/30/2013

6/30/2013

3/31/2013


Earnings Summary:







Interest revenue

$            110,599

$             112,510

$            111,961

$            112,009

$            113,027


Interest expense

9,076

10,093

11,720

13,796

14,949


Net interest revenue

101,523

102,417

100,241

98,213

98,078


Provision for credit losses

-

-

500

3,000

4,000


Net interest revenue, after provision







   for credit losses

101,523

102,417

99,741

95,213

94,078


Noninterest revenue

66,517

65,125

62,514

76,109

71,318


Noninterest expense

126,707

127,830

129,397

142,251

135,371


Income before income taxes

41,333

39,712

32,858

29,071

30,025


Income tax expense

12,889

12,014

8,001

8,316

9,220


Net income

$              28,444

$               27,698

$              24,857

$              20,755

$              20,805









Balance Sheet - Period End Balances







Total assets

$       13,143,555

$        13,029,733

$       12,916,153

$       13,217,705

$       13,393,135


Total earning assets

11,948,897

11,814,060

11,765,785

11,961,836

12,263,743


Total securities

2,426,758

2,466,989

2,554,156

2,644,939

2,607,176


Loans and leases, net of unearned income

9,068,376

8,958,015

8,773,115

8,678,714

8,581,538


Allowance for credit losses

149,704

153,236

153,974

161,047

162,601


Total deposits

10,811,790

10,773,836

10,717,946

10,961,618

11,164,926


Long-term debt

85,835

81,714

83,500

33,500

33,500


Total shareholders' equity

1,554,676

1,513,130

1,480,611

1,459,793

1,465,180









Balance Sheet - Average Balances







Total assets

$       13,087,128

$        12,955,127

$       12,928,505

$       13,146,040

$       13,249,374


Total earning assets

11,958,836

11,869,072

11,846,790

12,060,189

12,154,624


Total securities

2,452,178

2,511,888

2,598,786

2,616,274

2,520,414


Loans and leases, net of unearned income

9,022,155

8,830,917

8,682,966

8,588,673

8,580,329


Total deposits

10,825,308

10,739,352

10,745,945

10,938,489

11,090,989


Long-term debt

87,767

81,714

62,848

33,500

33,500


Total shareholders' equity

1,537,897

1,501,928

1,474,047

1,475,211

1,462,140









Nonperforming Assets:







Non-accrual loans and leases

$              77,531

$               92,173

$            121,353

$            149,542

$            188,190


Loans and leases 90+ days past due, still accruing

1,949

1,226

1,479

1,440

1,125


Restructured loans and leases, still accruing

13,776

27,007

21,502

16,953

17,702


Non-performing loans (NPLs)

93,256

120,406

144,334

167,935

207,017


Other real estate owned

63,595

69,338

76,853

88,438

96,314


Non-performing assets (NPAs)

$            156,851

$             189,744

$            221,187

$            256,373

$            303,331









Financial Ratios and Other Data:







Return on average assets

0.88%

0.85%

0.76%

0.63%

0.64%


Return on average shareholders' equity

7.50%

7.32%

6.69%

5.64%

5.77%


Return on tangible equity

9.28%

9.16%

8.29%

7.12%

7.19%


Pre-tax pre-provision return on average assets

1.28%

1.22%

1.02%

0.98%

1.04%


Non-interest income to average assets

2.06%

1.99%

1.92%

2.32%

2.18%


Non-interest expense to average assets

3.93%

3.91%

3.97%

4.34%

4.14%


Net interest margin-fully taxable equivalent

3.54%

3.52%

3.45%

3.36%

3.37%


Net interest rate spread

3.43%

3.39%

3.32%

3.21%

3.21%


Efficiency ratio (tax equivalent)

74.16%

75.00%

78.11%

80.25%

78.55%


Loan/deposit ratio

83.87%

83.15%

81.85%

79.17%

76.86%


Price to earnings mult (avg)

23.33

25.68

22.66

20.34

18.74


Market value to book value

154.13%

160.04%

128.22%

115.42%

105.88%


Market value to book value (avg)

150.43%

143.60%

126.22%

107.59%

98.61%


Market value to tangible book value

192.80%

201.75%

159.52%

144.16%

132.21%


Market value to tangible book value (avg)

188.17%

181.04%

157.02%

134.39%

123.12%


Headcount FTE

3,981

4,005

3,994

4,077

4,229









BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)














Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended


3/31/2014

12/31/2013

9/30/2013

6/30/2013

3/31/2013

Credit Quality Ratios:






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

0.16%

0.03%

0.35%

0.21%

0.27%

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

0.00%

0.00%

0.02%

0.14%

0.19%

Allowance for credit losses to net loans and leases

1.65%

1.71%

1.76%

1.86%

1.89%

Allowance for credit losses to non-performing loans and leases

160.53%

127.27%

106.68%

95.90%

78.54%

Allowance for credit losses to non-performing assets

95.44%

80.76%

69.61%

62.82%

53.61%

Non-performing loans and leases to net loans and leases

1.03%

1.34%

1.65%

1.94%

2.41%

Non-performing assets to net loans and leases

1.73%

2.12%

2.52%

2.95%

3.53%







Equity Ratios:






Total shareholders' equity to total assets

11.83%

11.61%

11.46%

11.04%

10.94%

Tangible shareholders' equity to tangible assets

9.69%

9.44%

9.43%

9.04%

8.96%













Capital Adequacy:






Tier 1 capital

13.18%

12.99%

13.25%

14.21%

14.06%

Total capital

14.44%

14.25%

14.50%

15.47%

15.31%

Tier 1 leverage capital

10.04%

9.93%

9.93%

10.58%

10.33%

   Estimated for current quarter












Common Share Data:






Basic earnings per share

$                  0.30

$                   0.29

$                  0.26

$                  0.22

$                  0.22

Diluted earnings per share

0.30

0.29

0.26

0.22

0.22

Cash dividends per share

0.05

0.05

0.05

0.01

0.01

Book value per share

16.19

15.89

15.55

15.34

15.39

Tangible book value per share

12.95

12.60

12.50

12.28

12.33

Market value per share (last)

24.96

25.42

19.94

17.70

16.30

Market value per share (high)

26.24

25.54

20.77

18.06

16.52

Market value per share (low)

22.46

19.64

17.76

14.72

14.14

Market value per share (avg)

24.36

22.81

19.63

16.50

15.18

Dividend payout ratio

16.80%

17.19%

19.15%

4.59%

4.55%

Total shares outstanding

96,004,679

95,231,691

95,211,602

95,190,797

95,174,441

Average shares outstanding - basic

95,629,890

95,217,203

95,201,238

95,177,167

94,595,897

Average shares outstanding - diluted

95,952,611

95,644,383

95,519,318

95,405,965

94,756,356













Yield/Rate:






(Taxable equivalent basis)






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

4.48%

4.52%

4.55%

4.62%

4.70%

Available-for-sale securities:






  Taxable

1.50%

1.51%

1.50%

1.55%

1.70%

  Tax-exempt

5.58%

5.52%

5.61%

5.47%

5.53%

Short-term investments

0.25%

0.25%

0.25%

0.25%

0.25%

  Total interest earning assets and revenue

3.85%

3.86%

3.85%

3.82%

3.87%

Deposits:

0.31%

0.34%

0.36%

0.39%

0.43%

  Demand - interest bearing

0.17%

0.18%

0.18%

0.21%

0.26%

  Savings

0.13%

0.13%

0.12%

0.14%

0.18%

  Other time

1.06%

1.13%

1.18%

1.23%

1.27%

Short-term borrowings

0.07%

0.07%

0.07%

0.07%

0.07%

Total int bearing dep & s/t borrowings

0.30%

0.30%

0.35%

0.37%

0.42%

Junior subordinated debt

2.86%

2.96%

6.57%

7.16%

7.23%

Long-term debt

2.91%

2.94%

3.19%

4.18%

4.21%

  Total interest bearing liabilities and expense

0.42%

0.46%

0.53%

0.61%

0.66%

Interest bearing liabilities to interest earning assets

73.51%

72.91%

74.15%

74.70%

75.54%

Net interest tax equivalent adjustment

$                2,823

$                 2,893

$                2,905

$                2,931

$                2,939







 

 

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)









Mar-14

Dec-13

Sep-13

Jun-13

Mar-13



(Dollars in thousands)


Assets







Cash and due from banks

$                199,214

$                208,961

$                199,464

$                268,647

$                147,947


Interest bearing deposits with other banks

390,896

319,462

361,401

526,608

969,506


Available-for-sale securities, at fair value

2,426,758

2,466,989

2,554,156

2,644,939

2,607,176


Loans and leases

9,103,850

8,993,888

8,806,392

8,711,023

8,614,791


  Less:  Unearned income

35,474

35,873

33,277

32,309

33,253


             Allowance for credit losses

149,704

153,236

153,974

161,047

162,601


Net loans and leases

8,918,672

8,804,779

8,619,141

8,517,667

8,418,937


Loans held for sale

62,867

69,593

77,114

111,574

105,523


Premises and equipment, net

314,367

315,260

314,441

313,079

313,980


Accrued interest receivable

42,666

42,150

43,034

41,425

44,696


Goodwill

286,800

286,800

275,173

275,173

275,173


Other identifiable intangibles

25,021

26,079

15,179

15,865

16,586


Bank owned life insurance

240,077

239,434

236,969

235,015

233,007


Other real estate owned

63,595

69,338

76,853

88,438

96,314


Other assets

172,622

180,888

143,228

179,275

164,290


Total Assets

$           13,143,555

$           13,029,733

$           12,916,153

$           13,217,705

$           13,393,135


Liabilities







Deposits:







  Demand:  Noninterest bearing

$             2,725,042

$             2,644,592

$             2,597,762

$             2,610,768

$             2,582,859


                  Interest bearing

4,583,481

4,582,450

4,493,359

4,667,041

4,840,330


  Savings

1,297,344

1,234,130

1,220,227

1,210,497

1,212,736


  Other time

2,205,923

2,312,664

2,406,598

2,473,312

2,529,001


Total deposits

10,811,790

10,773,836

10,717,946

10,961,618

11,164,926


Federal funds purchased and







    securities sold under agreement







    to repurchase

456,303

421,028

418,623

382,871

353,742


Accrued interest payable

4,050

4,836

5,156

5,230

5,519


Junior subordinated debt securities

23,198

31,446

31,446

160,312

160,312


Long-term debt

85,835

81,714

83,500

33,500

33,500


Other liabilities

207,703

203,743

178,871

214,381

209,956


Total Liabilities

11,588,879

11,516,603

11,435,542

11,757,912

11,927,955


Shareholders' Equity







Common stock

240,012

238,079

238,029

237,976

237,936


Capital surplus

320,969

312,900

312,798

312,074

311,091


Accumulated other comprehensive loss

(22,060)

(29,959)

(39,389)

(39,333)

(13,120)


Retained earnings

1,015,755

992,110

969,173

949,076

929,273


Total Shareholders' Equity

1,554,676

1,513,130

1,480,611

1,459,793

1,465,180


Total Liabilities & Shareholders' Equity

$           13,143,555

$           13,029,733

$           12,916,153

$           13,217,705

$           13,393,135









BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)









Mar-14

Dec-13

Sep-13

Jun-13

Mar-13



(Dollars in thousands)


Assets







Cash and due from banks

$                168,056

$                163,948

$                163,322

$                160,615

$                169,259


Interest bearing deposits with other banks

449,207

471,695

487,075

765,729

963,600


Available-for-sale securities, at fair value

2,452,178

2,511,888

2,598,786

2,616,274

2,520,414


Loans and leases

9,058,081

8,864,983

8,715,894

8,621,849

8,615,503


  Less:  Unearned income

35,926

34,066

32,928

33,176

35,174


             Allowance for credit losses

153,615

153,443

160,609

163,252

166,210


Net loans and leases

8,868,540

8,677,474

8,522,357

8,425,421

8,414,119


Loans held for sale

35,297

54,572

77,964

89,513

90,281


Premises and equipment, net

315,804

315,174

312,724

313,147

316,672


Accrued interest receivable

39,336

39,665

39,354

39,317

40,806


Goodwill

286,800

279,091

275,173

275,173

275,173


Other identifiable intangibles

25,420

18,658

15,446

16,142

16,876


Bank owned life insurance

239,969

237,657

235,708

233,670

231,814


Other real estate owned

69,086

77,211

86,545

91,505

97,336


Other assets

137,435

108,094

114,051

119,534

113,024


Total Assets

$           13,087,128

$           12,955,127

$           12,928,505

$           13,146,040

$           13,249,374


Liabilities







Deposits:







  Demand:  Noninterest bearing

$             2,647,376

$             2,667,667

$             2,551,812

$             2,522,577

$             2,463,436


                  Interest bearing

4,657,785

4,484,269

4,530,219

4,707,277

4,891,412


  Savings

1,260,838

1,224,588

1,216,599

1,208,454

1,173,603


  Other time

2,259,309

2,362,828

2,447,315

2,500,181

2,562,538


Total deposits

10,825,308

10,739,352

10,745,945

10,938,489

11,090,989


Federal funds purchased and







    securities sold under agreement







    to repurchase

458,436

469,245

441,807

399,789

360,178


Accrued interest payable

4,400

5,051

5,391

5,481

7,026


Junior subordinated debt securities

23,748

31,446

86,074

160,312

160,312


Long-term debt

87,767

81,714

62,848

33,500

33,500


Other liabilities

149,572

126,391

112,393

133,258

135,229


Total Liabilities

11,549,231

11,453,199

11,454,458

11,670,829

11,787,234


Shareholders' Equity







Common stock

238,853

238,038

237,997

237,956

236,922


Capital surplus

314,117

312,835

312,349

311,480

311,603


Accumulated other comprehensive loss

(23,644)

(32,267)

(43,695)

(15,277)

(10,313)


Retained earnings

1,008,571

983,322

967,396

941,052

923,928


Total Shareholders' Equity

1,537,897

1,501,928

1,474,047

1,475,211

1,462,140


Total Liabilities & Shareholders' Equity

$           13,087,128

$           12,955,127

$           12,928,505

$           13,146,040

$           13,249,374









 

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)













Quarter Ended




Mar-14


Dec-13


Sep-13


Jun-13


Mar-13


INTEREST REVENUE:











Loans and leases

$    98,744


$   99,989


$     98,836


$    98,524


$   99,092


Deposits with other banks

276


299


310


483


602


Available-for-sale securities:











    Taxable

7,547


7,963


8,218


8,405


8,700


    Tax-exempt

3,715


3,810


3,866


3,911


3,960


Loans held for sale

317


449


731


686


673


        Total interest revenue

110,599


112,510


111,961


112,009


113,027













INTEREST EXPENSE:











Interest bearing demand

1,920


2,036


2,061


2,423


3,125


Savings

391


387


383


422


513


Other time

5,890


6,746


7,271


7,671


8,041


Federal funds purchased and securities sold











   under agreement to repurchase

78


84


80


70


63


Long-term debt

629


605


501


349


348


Junior subordinated debt

168


235


1,424


2,860


2,857


Other

-


-


-


1


2


        Total interest expense

9,076


10,093


11,720


13,796


14,949













        Net interest revenue

101,523


102,417


100,241


98,213


98,078


  Provision for credit losses

-


-


500


3,000


4,000


        Net interest revenue, after provision for











          credit losses

101,523


102,417


99,741


95,213


94,078













NONINTEREST REVENUE:











Mortgage lending

3,394


9,605


5,134


17,892


12,346


Credit card, debit card and merchant fees

7,843


8,324


8,834


8,324


7,523


Deposit service charges

12,536


13,570


13,679


12,824


12,832


Trust income

3,568


3,717


3,332


3,192


3,210


Security gains (losses), net

(4)


29


(5)


3


19


Insurance commissions

31,599


21,397


23,800


25,862


26,641


Other

7,581


8,483


7,740


8,012


8,747


        Total noninterest revenue

66,517


65,125


62,514


76,109


71,318













NONINTEREST EXPENSE:











Salaries and employee benefits

78,883


75,466


73,532


78,284


79,414


Occupancy, net of rental income

10,287


9,935


10,360


10,577


10,237


Equipment

4,499


4,298


4,555


4,585


4,948


Deposit insurance assessments

1,600


2,687


3,325


2,939


2,804


Voluntary early retirement expense

-


-


-


10,850


-


Write-off and amortization of bond issue cost

12


12


2,907


38


38


Other

31,426


35,432


34,718


34,978


37,930


        Total noninterest expenses

126,707


127,830


129,397


142,251


135,371


        Income before income taxes

41,333


39,712


32,858


29,071


30,025


Income tax expense

12,889


12,014


8,001


8,316


9,220


        Net income

$    28,444


$   27,698


$     24,857


$    20,755


$   20,805













Net income per share: Basic

$       0.30


$       0.29


$        0.26


$       0.22


$       0.22


                                  Diluted

$       0.30


$       0.29


$        0.26


$       0.22


$       0.22













BancorpSouth, Inc.


Selected Loan Data


(Dollars in thousands)


(Unaudited)














Quarter Ended



Mar-14


Dec-13


Sep-13


Jun-13


Mar-13


LOAN AND LEASE PORTFOLIO:











Commercial and industrial

$ 1,581,251


$ 1,529,249


$ 1,503,809


$ 1,552,762


$ 1,480,916


Real estate











   Consumer mortgages

2,047,001


1,976,073


1,931,171


1,880,338


1,871,312


   Home equity

498,283


494,339


490,361


482,068


482,398


   Agricultural

229,602


234,576


234,547


237,914


249,467


   Commercial and industrial-owner occupied

1,488,380


1,473,320


1,422,077


1,375,711


1,334,974


   Construction, acquisition and development

748,027


741,458


723,609


709,499


728,092


   Commercial real estate

1,847,983


1,846,039


1,795,352


1,754,841


1,739,533


Credit cards

105,988


111,328


105,112


103,251


98,803


All other

521,861


551,633


567,077


582,330


596,043


     Total loans

$ 9,068,376


$ 8,958,015


$ 8,773,115


$ 8,678,714


$ 8,581,538













ALLOWANCE FOR CREDIT LOSSES:











Balance, beginning of period

$   153,236


$   153,974


$    161,047


$   162,601


$   164,466













Loans and leases charged off:











Commercial and industrial

(201)


(837)


(889)


(1,008)


(1,938)


Real estate











   Consumer mortgages

(1,945)


(1,435)


(2,996)


(3,114)


(1,614)


   Home equity

(318)


(287)


(379)


(201)


(602)


   Agricultural

(696)


(238)


(169)


(327)


(2)


   Commercial and industrial-owner occupied

(1,206)


(1,041)


(1,684)


(830)


(300)


   Construction, acquisition and development

(1,666)


(1,784)


(1,727)


(2,036)


(1,198)


   Commercial real estate

(901)


(1,039)


(2,441)


(3,720)


(3,141)


Credit cards

(559)


(559)


(750)


(557)


(450)


All other

(583)


(1,108)


(837)


(462)


(492)


     Total loans charged off

(8,075)


(8,328)


(11,872)


(12,255)


(9,737)













Recoveries:











Commercial and industrial

1,076


1,361


820


747


589


Real estate











   Consumer mortgages

538


1,735


1,516


708


1,108


   Home equity

184


97


66


184


260


   Agricultural

9


34


48


120


13


   Commercial and industrial-owner occupied

358


734


297


1,439


254


   Construction, acquisition and development

1,637


2,483


953


360


886


   Commercial real estate

323


784


221


3,634


339


Credit cards

131


133


164


184


148


All other

287


229


214


325


275


     Total recoveries

4,543


7,590


4,299


7,701


3,872













Net charge-offs

(3,532)


(738)


(7,573)


(4,554)


(5,865)













Provision charged to operating expense

-


-


500


3,000


4,000


Balance, end of period

$   149,704


$   153,236


$    153,974


$   161,047


$   162,601













Average loans for period

$ 9,022,155


$ 8,830,917


$ 8,682,966


$ 8,588,673


$ 8,580,329













Ratio:











Net charge-offs to average loans (annualized)

0.16%


0.03%


0.35%


0.21%


0.27%













 

 

 

BancorpSouth, Inc.


Selected Loan Data


(Dollars in thousands)


(Unaudited)














Quarter Ended



Mar-14


Dec-13


Sep-13


Jun-13


Mar-13


NON-PERFORMING ASSETS











NON-PERFORMING LOANS AND LEASES:











  Nonaccrual Loans and Leases











    Commercial and industrial

$      3,023


$         3,079


$         5,498


$      6,225


$         7,009


    Real estate











       Consumer mortgages

24,353


25,645


30,569


34,226


39,012


       Home equity

2,740


3,695


3,287


3,862


4,272


       Agricultural

651


1,260


4,086


5,007


6,667


       Commercial and industrial-owner occupied

14,122


18,568


18,138


17,084


20,719


       Construction, acquisition and development

9,968


17,567


26,127


39,315


51,728


       Commercial real estate

21,496


20,972


31,468


40,940


55,318


    Credit cards

168


119


196


398


418


    All other

1,010


1,268


1,984


2,485


3,047


         Total nonaccrual loans and leases

$    77,531


$       92,173


$      121,353


$  149,542


$      188,190













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











    Commercial and industrial

$        287


$             27


$             15


$            -


$             22


    Real estate











       Consumer mortgages

1,307


888


1,178


1,107


842


       Home equity

12


-


-


-


-


       Agricultural

-


-


-


-


-


       Commercial and industrial-owner occupied

-


-


-


-


-


       Construction, acquisition and development

-


-


-


-


-


       Commercial real estate

-


311


-


120


-


    Credit cards

297


-


263


213


261


    All other

46


-


23


-


-


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

1,949


1,226


1,479


1,440


1,125













  Restructured Loans and Leases, Still Accruing

13,776


27,007


21,502


16,953


17,702


     Total non-performing loans and leases

93,256


120,406


144,334


167,935


207,017













OTHER REAL ESTATE OWNED:

63,595


69,338


76,853


88,438


96,314













Total Non-performing Assets

$  156,851


$      189,744


$      221,187


$  256,373


$      303,331













Additions to Nonaccrual Loans and Leases During the Quarter

$    22,479


$       18,556


$       21,182


$    21,890


$       22,294













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











    Commercial and industrial

$      2,616


$         2,817


$         1,909


$      1,517


$         1,764


    Real estate











       Consumer mortgages

12,236


14,150


10,914


11,887


11,720


       Home equity

1,587


1,828


1,278


1,315


1,567


       Agricultural

302


495


761


569


757


       Commercial and industrial-owner occupied

3,248


4,081


1,995


1,323


956


       Construction, acquisition and development

2,848


1,993


3,920


1,835


4,292


       Commercial real estate

3,953


5,574


5,818


535


1,331


    Credit cards

592


655


688


668


544


    All other

963


2,189


1,634


1,591


1,473


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

$    28,345


$       33,782


$       28,917


$    21,240


$       24,404













Credit Quality Ratios:











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

0.00%


0.00%


0.02%


0.14%


0.19%


Allowance for credit losses to net loans and leases

1.65%


1.71%


1.76%


1.86%


1.89%


Allowance for credit losses to non-performing assets

95.44%


80.76%


69.61%


62.82%


53.61%


Allowance for credit losses to non-performing loans and leases

160.53%


127.27%


106.68%


95.90%


78.54%


Non-performing loans and leases to net loans and leases

1.03%


1.34%


1.65%


1.94%


2.41%


Non-performing assets to net loans and leases

1.73%


2.12%


2.52%


2.95%


3.53%













 

BancorpSouth, Inc.


Selected Loan Data


(Dollars in thousands)


(Unaudited)














Quarter Ended



Mar-14


Dec-13


Sep-13


Jun-13


Mar-13


REAL ESTATE CONSTRUCTION, ACQUISITION 











   AND DEVELOPMENT ("CAD") PORTFOLIO:











  Outstanding Balance











     Multi-family construction

$     11,339


$         7,702


$         7,974


$       8,902


$         8,182


     One-to-four family construction

221,790


224,286


203,988


202,603


193,032


     Recreation and all other loans

36,897


36,868


41,762


42,132


42,909


     Commercial construction

177,264


150,847


139,041


117,901


111,702


     Commercial acquisition and development

122,051


128,157


136,206


136,174


154,997


     Residential acquisition and development

178,686


193,598


194,638


201,787


217,270


         Total outstanding balance

$   748,027


$      741,458


$      723,609


$   709,499


$      728,092













  Nonaccrual CAD Loans











     Multi-family construction

$             -


$                -


$                -


$             -


$                -


     One-to-four family construction

2,824


2,937


3,249


6,193


8,154


     Recreation and all other loans

919


728


782


800


978


     Commercial construction

-


865


1,686


2,765


3,381


     Commercial acquisition and development

2,224


6,890


11,150


14,225


14,240


     Residential acquisition and development

4,001


6,147


9,260


15,332


24,975


         Total nonaccrual CAD loans

$       9,968


$       17,567


$       26,127


$     39,315


$       51,728













  CAD Loans 90+ Days Past Due, Still Accruing:











     Multi-family construction

$             -


$                -


$                -


$             -


$                -


     One-to-four family construction

-


-


-


-


-


     Recreation and all other loans

-


-


-


-


-


     Commercial construction

-


-


-


-


-


     Commercial acquisition and development

-


-


-


-


-


     Residential acquisition and development

-


-


-


-


-


         Total CAD loans 90+ days past due, still accruing

$             -


$                -


$                -


$             -


$                -













  Restructured CAD Loans, Still Accruing











     Multi-family construction

$             -


$                -


$                -


$             -


$                -


     One-to-four family construction

-


1,274


1,028


867


-


     Recreation and all other loans

13


13


15


15


17


     Commercial construction

-


346


348


351


-


     Commercial acquisition and development

402


1,990


2,010


2,030


2,047


     Residential acquisition and development

1,192


3,111


3,162


3,458


5,148


         Total restructured CAD loans, still accruing

$       1,607


$         6,734


$         6,563


$       6,721


$         7,212













        Total Non-performing CAD loans

$     11,575


$       24,301


$       32,690


$     46,036


$       58,940













  CAD NPL as a % of Outstanding CAD Balance











     Multi-family construction

-


-


-


-


-


     One-to-four family construction

1.3%


1.9%


2.1%


3.5%


4.2%


     Recreation and all other loans

2.5%


2.0%


1.9%


1.9%


2.3%


     Commercial construction

0.0%


0.8%


1.5%


2.6%


3.0%


     Commercial acquisition and development

2.2%


6.9%


9.7%


11.9%


10.5%


     Residential acquisition and development

2.9%


4.8%


6.4%


9.3%


13.9%


         Total CAD NPL as a % of outstanding CAD balance

1.5%


3.3%


4.5%


6.5%


8.1%













 

BancorpSouth, Inc.





Selected Loan Data





(Dollars in thousands)





(Unaudited)




















March 31, 2014




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$ 1,535,172


$       13,043


$       31,741


$            -


$                -


$    1,295


$ 1,581,251

Real estate














   Consumer mortgages

1,936,837


243


104,486


310


-


5,125


2,047,001

   Home equity

483,746


343


13,456


96


-


642


498,283

   Agricultural

210,346


563


18,257


-


-


436


229,602

   Commercial and industrial-owner occupied

1,420,813


3,887


56,124


510


-


7,046


1,488,380

   Construction, acquisition and development

697,094


1,556


40,713


768


-


7,896


748,027

   Commercial real estate

1,757,573


-


71,374


198


-


18,838


1,847,983

Credit cards

105,988


-


-


-


-


-


105,988

All other

509,729


68


11,876


-


-


188


521,861

     Total loans

$ 8,657,298


$       19,703


$      348,027


$      1,882


$                -


$  41,466


$ 9,068,376






























December 31, 2013




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$ 1,495,972


$            978


$       30,886


$          99


$                -


$    1,314


$ 1,529,249

Real estate














   Consumer mortgages

1,859,094


1,531


108,615


427


-


6,406


1,976,073

   Home equity

478,283


250


14,570


96


-


1,140


494,339

   Agricultural

214,728


779


18,187


-


-


882


234,576

   Commercial and industrial-owner occupied

1,409,757


116


50,853


849


-


11,745


1,473,320

   Construction, acquisition and development

674,299


1,459


49,401


587


-


15,712


741,458

   Commercial real estate

1,751,553


386


76,199


420


-


17,481


1,846,039

Credit cards

111,328


-


-


-


-


-


111,328

All other

538,467


71


12,832


-


-


263


551,633

     Total loans

$ 8,533,481


$         5,570


$      361,543


$      2,478


$                -


$  54,943


$ 8,958,015















 

 

BancorpSouth, Inc.


Geographical Information


(Dollars in thousands)


(Unaudited)






















March 31, 2014



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

$   80,620


$   188,455


$   282,829


$  34,165


$     23,138


$     80,065


$   279,379


$   612,600


$  1,581,251


Real estate



















   Consumer mortgages

149,108


264,744


689,847


64,206


105,566


162,701


501,316


109,513


2,047,001


   Home equity

64,648


40,076


163,896


21,039


67,421


72,663


66,554


1,986


498,283


   Agricultural

7,797


68,685


57,168


3,471


14,492


11,611


61,959


4,419


229,602


   Commercial and industrial-owner occupied

173,560


167,136


479,186


65,786


92,641


89,244


293,217


127,610


1,488,380


   Construction, acquisition and development

100,165


66,985


193,818


22,190


77,559


103,894


149,859


33,557


748,027


   Commercial real estate

262,639


304,695


280,466


198,179


98,039


107,520


425,729


170,716


1,847,983


Credit cards

-


-


-


-


-


-


-


105,988


105,988


All other

30,706


54,338


136,963


2,368


38,539


37,585


78,648


142,714


521,861


     Total loans

$ 869,243


$ 1,155,114


$ 2,284,173


$ 411,404


$   517,395


$   665,283


$ 1,856,661


$ 1,309,103


$  9,068,376





















CAD PORTFOLIO:



















Multi-family construction

$     1,910


$         998


$         481


$           -


$             -


$       5,757


$       2,193


$             -


$       11,339


One-to-four family construction

36,950


14,774


46,541


5,004


10,833


69,004


38,042


642


221,790


Recreation and all other loans

1,700


7,674


11,912


572


4,462


1,091


9,486


-


36,897


Commercial construction

21,710


15,459


46,304


4,158


19,245


5,507


34,371


30,510


177,264


Commercial acquisition and development

10,821


14,669


34,571


5,846


19,308


9,481


26,557


798


122,051


Residential acquisition and development

27,074


13,411


54,009


6,610


23,711


13,054


39,210


1,607


178,686


     Total CAD loans

$ 100,165


$     66,985


$   193,818


$  22,190


$     77,559


$   103,894


$   149,859


$     33,557


$     748,027





















NON-PERFORMING LOANS AND LEASES:



















Commercial and industrial

$     1,316


$       1,128


$       1,235


$           -


$           19


$         132


$         807


$         312


$        4,949


Real estate



















   Consumer mortgages

1,488


1,655


9,364


385


2,718


2,502


2,391


7,255


27,758


   Home equity

707


124


442


-


315


637


542


3


2,770


   Agricultural

-


423


191


269


201


-


191


1


1,276


   Commercial and industrial-owner occupied

3,432


2,765


6,502


541


1,097


3,105


1,231


-


18,673


   Construction, acquisition and development

2,541


235


3,481


-


2,017


310


2,644


347


11,575


   Commercial real estate

4,326


8


2,986


6,589


3,307


3,804


1,282


1,177


23,479


Credit cards

-


-


-


-


-


-


-


1,663


1,663


All other

13


111


291


-


40


277


371


10


1,113


     Total loans

$   13,823


$       6,449


$     24,492


$    7,784


$       9,714


$     10,767


$       9,459


$     10,768


$       93,256





















NON-PERFORMING LOANS AND LEASES



















   AS A PERCENTAGE OF OUTSTANDING:



















Commercial and industrial

1.63%


0.60%


0.44%


0.00%


0.08%


0.16%


0.29%


0.05%


0.31%


Real estate



















   Consumer mortgages

1.00%


0.63%


1.36%


0.60%


2.57%


1.54%


0.48%


6.62%


1.36%


   Home equity

1.09%


0.31%


0.27%


0.00%


0.47%


0.88%


0.81%


0.15%


0.56%


   Agricultural

0.00%


0.62%


0.33%


7.75%


1.39%


0.00%


0.31%


0.02%


0.56%


   Commercial and industrial-owner occupied

1.98%


1.65%


1.36%


0.82%


1.18%


3.48%


0.42%


0.00%


1.25%


   Construction, acquisition and development

2.54%


0.35%


1.80%


0.00%


2.60%


0.30%


1.76%


1.03%


1.55%


   Commercial real estate

1.65%


0.00%


1.06%


3.32%


3.37%


3.54%


0.30%


0.69%


1.27%


Credit cards

-


-


-


-


-


-


-


1.57%


1.57%


All other

0.04%


0.20%


0.21%


0.00%


0.10%


0.74%


0.47%


0.01%


0.21%


     Total loans

1.59%


0.56%


1.07%


1.89%


1.88%


1.62%


0.51%


0.82%


1.03%








































*Excludes the Greater Memphis Area.






































 

 

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)




















March 31, 2014


Alabama








Greater










and Florida








Memphis




Texas and 






Panhandle


Arkansas*


Mississippi*


Missouri


Area


Tennessee*


Louisiana


Other


Total

OTHER REAL ESTATE OWNED:


















Commercial and industrial

$          84


$                -


$                -


$            -


$                -


$             -


$           -


$           -


$          84

Real estate


















   Consumer mortgages

822


232


2,465


62


68


199


5


-


3,853

   Home equity

442


-


556


-


-


-


-


-


998

   Agricultural

907


-


216


-


1,083


-


-


-


2,206

   Commercial and industrial-owner occupied

33


33


1,703


-


827


25


105


-


2,726

   Construction, acquisition and development

15,035


94


10,853


861


20,114


3,871


257


-


51,085

   Commercial real estate

352


316


568


-


1,036


-


106


-


2,378

All other

-


-


85


-


-


-


147


33


265

     Total loans

$    17,675


$            675


$       16,446


$        923


$       23,128


$      4,095


$       620


$        33


$    63,595




















Quarter Ended










Mar-14


Dec-13


Sep-13


Jun-13


Mar-13









OTHER REAL ESTATE OWNED:


















Balance, beginning of period

$    69,338


$       76,853


$       88,438


$    96,314


$      103,248









Additions to foreclosed properties


















   New foreclosed property

4,855


7,868


9,536


9,639


2,222









Reductions in foreclosed properties


















   Sales

(8,767)


(14,272)


(19,333)


(15,641)


(7,811)









   Writedowns

(1,831)


(1,111)


(1,788)


(1,874)


(1,345)









Balance, end of period

$    63,595


$       69,338


$       76,853


$    88,438


$       96,314



























FORECLOSED PROPERTY EXPENSE


















Loss (gain) on sale of other real estate owned

$        466


$            949


$            352


$        166


$          (200)









Writedown of other real estate owned

1,831


1,111


1,788


1,874


1,345









Other foreclosed property expense

258


771


1,158


1,205


1,209









Total foreclosed property expense

$      2,555


$         2,831


$         3,298


$      3,245


$         2,354













































*Excludes the Greater Memphis Area.




































 

 

BancorpSouth, Inc.


Noninterest Revenue and Expense


(Dollars in thousands)


(Unaudited)














Quarter Ended



Mar-14


Dec-13


Sep-13


Jun-13


Mar-13


NONINTEREST REVENUE:











Mortgage lending

$      3,394


$         9,605


$         5,134


$    17,892


$       12,346


Credit card, debit card and merchant fees

7,843


8,324


8,834


8,324


7,523


Deposit service charges

12,536


13,570


13,679


12,824


12,832


Trust income

3,568


3,717


3,332


3,192


3,210


Securities gains (losses), net

(4)


29


(5)


3


19


Insurance commissions

31,599


21,397


23,800


25,862


26,641


Annuity fees

772


566


719


543


483


Brokerage commissions and fees

1,576


1,037


2,005


2,068


2,093


Bank-owned life insurance

1,849


2,466


1,954


2,008


1,887


Other miscellaneous income

3,384


4,414


3,062


3,393


4,284


     Total noninterest revenue

$    66,517


$       65,125


$       62,514


$    76,109


$       71,318













NONINTEREST EXPENSE:











Salaries and employee benefits

$    78,883


$       75,466


$       73,532


$    78,284


$       79,414


Occupancy, net of rental income

10,287


9,935


10,360


10,577


10,237


Equipment

4,499


4,298


4,555


4,585


4,948


Deposit insurance assessments

1,600


2,687


3,325


2,939


2,804


Voluntary early retirement expense

-


-


-


10,850


-


Amortization of bond issue cost

12


12


2,907


38


38


Advertising

632


1,436


1,210


1,169


743


Foreclosed property expense

2,555


2,831


3,298


3,245


2,354


Telecommunications

2,248


1,971


2,227


2,184


2,099


Public relations

822


972


1,105


1,175


1,005


Data processing

2,741


2,939


2,772


2,783


2,468


Computer software

2,423


2,197


2,190


2,146


1,963


Amortization of intangibles

1,419


819


686


722


743


Legal

1,878


2,537


4,626


3,896


9,366


Merger expense

560


-


-


-


-


Postage and shipping

1,287


1,133


1,027


1,074


1,135


Other miscellaneous expense

14,861


18,597


15,577


16,584


16,054


Total noninterest expense

$  126,707


$      127,830


$      129,397


$  142,251


$      135,371













INSURANCE COMMISSIONS:











Property and casualty commissions

$    19,987


$       15,588


$       18,372


$    18,762


$       16,878


Life and health commissions

5,010


4,525


4,061


5,093


4,688


Risk management income

705


648


628


573


650


Other

5,897


636


739


1,434


4,425


Total insurance commissions

$    31,599


$       21,397


$       23,800


$    25,862


$       26,641













 

BancorpSouth, Inc.


Selected Additional Information


(Dollars in thousands)


(Unaudited)














Quarter Ended



Mar-14


Dec-13


Sep-13


Jun-13


Mar-13


MORTGAGE SERVICING RIGHTS:











Fair value, beginning of period

$     54,662


$       51,025


$       49,001


$     41,478


$       37,882


Additions to mortgage servicing rights:











   Originations of servicing assets

1,460


1,984


3,826


4,012


4,268


Changes in fair value:











   Due to payoffs/paydowns

(1,138)


(1,240)


(1,560)


(1,739)


(1,705)


   Due to change in valuation inputs or











     assumptions used in the valuation model

(1,547)


2,894


(240)


5,252


1,037


   Other changes in fair value

(1)


(1)


(2)


(2)


(4)


Fair value, end of period

$     53,436


$       54,662


$       51,025


$     49,001


$       41,478













MORTGAGE LENDING REVENUE:











Origination

$       1,964


$         3,590


$         2,862


$     10,471


$         9,187


Servicing

4,115


4,361


4,072


3,908


3,827


MSR payoffs/paydowns

(1,138)


(1,240)


(1,560)


(1,739)


(1,705)


MSR valuation adjustment

(1,547)


2,894


(240)


5,252


1,037


Total mortgage lending revenue

$       3,394


$         9,605


$         5,134


$     17,892


$       12,346













Mortgage loans serviced

$ 5,568,828


$   5,577,325


$   5,543,619


$ 5,393,580


$   5,236,852


MSR/mtg loans serviced

0.96%


0.98%


0.92%


0.91%


0.79%













AVAILABLE-FOR-SALE SECURITIES, at fair value











U.S. Government agencies

$ 1,419,269


$   1,458,349


$   1,519,459


$ 1,581,570


$   1,517,725


Government agency issued residential











   mortgage-back securities

241,596


250,234


268,367


292,586


334,550


Government agency issued commercial











   mortgage-back securities

234,059


230,912


229,412


227,381


196,459


Obligations of states and political subdivisions

523,811


519,405


528,889


535,337


550,475


Other

8,023


8,089


8,029


8,065


7,967


Total available-for-sale securities

$ 2,426,758


$   2,466,989


$   2,554,156


$ 2,644,939


$   2,607,176













 

 

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




3/31/2014


12/31/2013


9/30/2013


6/30/2013


3/31/2013













Net income


$          28,444


$          27,698


$          24,857


$          20,755


$         20,805

Plus:

Provision for credit losses


-


-


500


3,000


4,000


Income tax expense


12,889


12,014


8,001


8,316


9,220

Pre-tax, pre-provision earnings


$          41,333


$          39,712


$          33,358


$          32,071


$         34,025


























Reconciliation of Tangible Assets and Tangible Shareholders' Equity to 









Total Assets and Total Shareholders' Equity:


























Quarter ended




3/31/2014


12/31/2013


9/30/2013


6/30/2013


3/31/2013

Tangible assets











Total assets


$    13,143,555


$    13,029,733


$    12,916,153


$    13,217,705


$   13,393,135

Less:  

Goodwill


286,800


286,800


275,173


275,173


275,173


Other identifiable intangible assets


25,021


26,079


15,179


15,865


16,586

Total tangible assets


$    12,831,734


$    12,716,854


$    12,625,801


$    12,926,667


$   13,101,376













Tangible shareholders' equity











Total shareholders' equity


$     1,554,676


$     1,513,130


$     1,480,611


$      1,459,793


$    1,465,180

Less:

Goodwill


286,800


286,800


275,173


275,173


275,173


Other identifiable intangible assets


25,021


26,079


15,179


15,865


16,586

Total tangible shareholders' equity


$     1,242,855


$     1,200,251


$     1,190,259


$      1,168,755


$    1,173,421













Total average assets


$    13,087,128


$    12,955,127


$    12,928,505


$    13,146,040


$   13,249,374

Total common shares outstanding


96,004,679


95,231,691


95,211,602


95,190,797


95,174,441













Tangible shareholders' equity to tangible assets*


9.69%


9.44%


9.43%


9.04%


8.96%

Return on tangible equity **


9.28%


9.16%


8.29%


7.12%


7.19%

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


1.28%


1.22%


1.02%


0.98%


1.04%

Tangible book value per share****


$           12.95


$           12.60


$           12.50


$            12.28


$          12.33

























*

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.













SOURCE BancorpSouth, Inc.

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