BancorpSouth Announces First Quarter 2015 Financial Results
PR Newswire
TUPELO, Miss.

TUPELO, Miss., April 20, 2015 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended March 31, 2015.

Highlights for the first quarter of 2015 included:

  • Net income of $32.3 million or $0.33 per diluted share.
  • Net operating income of $32.3 million or $0.33 per diluted share.
  • Generated deposit growth of $280.3 million, or 10.4 percent on an annualized basis.
  • Continued credit quality improvement and recoveries of previously charged-off loans resulted in a negative provision for credit losses of $5.0 million.
  • The consent order issued on September 4, 2014 related to Bank Secrecy Act ("BSA") and anti-money laundering ("AML") compliance was terminated effective April 7, 2015.    
  • Produced $33.5 million of insurance commission revenue, which represents the highest level of quarterly insurance commission revenue in the Company's history.
  • Mortgage lending revenue totaled $8.6 million, despite a negative mortgage servicing rights ("MSR") valuation adjustment of $3.0 million.
  • Merger applications for pending Ouachita Bancshares Corp. and Central Community Corporation transactions were re-filed with regulatory agencies.
  • Earnings were adversely impacted by a $5.5 million increase to the litigation reserve for probable losses related to certain ongoing legal matters.

"We are extremely pleased to have the consent order related to BSA and AML compliance lifted," remarked Dan Rollins, Chairman and Chief Executive Officer.  "The timely resolution to this matter is reflective of the diligence, effort, and effectiveness our team displayed in dealing with the issue.  We are appreciative of the guidance provided by our regulators through this process and their commitment to review our program in such a timely manner."

The Company reported net income of $32.3 million, or $0.33 per diluted share, for the first quarter of 2015 compared with net income of $28.4 million, or $0.30 per diluted share, for the first quarter of 2014 and net income of $28.7 million, or $0.30 per diluted share, for the fourth quarter of 2014. 

The Company reported net operating income (excluding merger related and other non-operating expenses) of $32.3 million, or $0.33 per diluted share, for the first quarter of 2015 compared to $28.8 million, or $0.30 per diluted share, for the first quarter of 2014 and $28.7 million, or $0.30 per diluted share, for the fourth quarter of 2014. 

Rollins continued, "We are pleased to report quarterly results that reflect continued improvement in profitability and core operating performance.  Earnings for the quarter benefited from growth in our noninterest products.  Our insurance team generated $33.5 million of commission revenue, which is the largest quarterly insurance commission revenue total in our Company's history.  Our mortgage team produced $311.1 million of mortgage loans for the quarter, which contributed to mortgage lending revenue of $8.6 million.  Finally, our wealth management team reported total revenue of $6.2 million.  The growth in each of these products is reflective of our overall strategic focus on growing all areas of our Company as well as our ability to attract quality producers.  While seasonal pay-downs in certain large commercial lines of credit provided a headwind to net loan growth, we continue to be pleased with our new loan production as well as our current loan pipeline."

Earnings for the quarter benefitted from a negative provision for credit losses totaling $5.0 million.  Rollins added, "Our reported credit quality metrics continue to improve.  During the quarter, we also received recoveries of previously charged-off loans of $4.0 million.  Our entire team has done an outstanding job in returning our Company's credit quality to a level we are all proud of."  

Net Interest Revenue

Net interest revenue was $106.1 million for the first quarter of 2015, an increase of 4.5 percent from $101.5 million for the first quarter of 2014 and a decrease of 0.3 percent from $106.4 million for the fourth quarter of 2014.  The fully taxable equivalent net interest margin was 3.56 percent for the first quarter of 2015 compared to 3.54 percent for the first quarter of 2014 and 3.60 percent for the fourth quarter of 2014.  Yields on loans and leases declined to 4.31 percent for the first quarter of 2015 from 4.48 percent for the first quarter of 2014 and increased from 4.30 percent for the fourth quarter of 2014, while yields on total interest earning assets were 3.80 percent for the first quarter of 2015 compared with 3.85 percent for both the first quarter of 2014 and the fourth quarter of 2014.  The average cost of deposits was 0.24 percent for the first quarter of 2015 compared to 0.31 percent for the first quarter of 2014 and 0.25 percent for the fourth quarter of 2014.

Asset, Deposit and Loan Activity

Total assets were $13.6 billion at March 31, 2015 compared with $13.1 billion at March 31, 2014.  Loans and leases, net of unearned income, were $9.7 billion at March 31, 2015 compared with $9.1 billion at March 31, 2014. 

Total deposits were $11.3 billion at March 31, 2015 compared with $10.8 billion at March 31, 2014.  The decrease in time deposits of $243.8 million, or 11.1 percent, at March 31, 2015 compared to March 31, 2014 was offset by growth in other lower cost deposits.  Noninterest bearing demand deposits increased $189.9 million, or 7.0 percent, over the same period.  Additionally, savings deposits increased $98.5 million, or 7.6 percent, while interest bearing demand deposits increased $396.2 million, or 8.6 percent, over the same period.  At March 31, 2015, $665.1 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.68 percent. 

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the quarter reflect a negative provision for credit losses of $5.0 million, compared to no recorded provision for both the first quarter of 2014 and the fourth quarter of 2014.  Total non-performing assets ("NPAs") declined $67.5 million, or 43.0 percent, to $89.4 million at March 31, 2015 compared with $156.9 million at March 31, 2014 and declined $16.4 million, or 15.5 percent, from $105.7 million at December 31, 2014. 

Net charge-offs for the first quarter of 2015 were $0.8 million, compared with $3.5 million for the first quarter of 2014 and $1.5 million for the fourth quarter of 2014.  Recoveries of previously charged-off loans were $4.0 million for the first quarter of 2015, compared with $4.5 million for the first quarter of 2014 and $3.3 million for the fourth quarter of 2014.  Annualized net charge-offs were 0.03 percent of average loans and leases for the first quarter of 2015, compared with 0.16 percent for the first quarter of 2014 and 0.06 percent for the fourth quarter of 2014. 

Non-performing loans ("NPLs") were $61.5 million, or 0.63 percent of net loans and leases, at March 31, 2015, compared with $93.3 million, or 1.03 percent of net loans and leases, at March 31, 2014, and $71.7 million, or 0.74 percent of net loans and leases, at December 31, 2014.  The allowance for credit losses was $136.7 million, or 1.40 percent of net loans and leases, at March 31, 2015 compared with $149.7 million, or 1.65 percent of net loans and leases, at March 31, 2014 and $142.4 million, or 1.47 percent of net loans and leases, at December 31, 2014. 

NPLs at March 31, 2015 consisted primarily of $54.4 million of nonaccrual loans, compared with $58.1 million of nonaccrual loans at December 31, 2014.  Payments received on nonaccrual loans during the first quarter of 2015 totaled $18.9 million, compared with payments received on such loans of $8.5 million during the fourth quarter of 2014.  NPLs at March 31, 2015 also included $1.6 million of loans 90 days or more past due and still accruing, compared with $2.8 million of such loans at December 31, 2014, and included restructured loans still accruing of $5.4 million at March 31, 2015, compared with $10.9 million of such loans at December 31, 2014.  Early stage past due loans, representing loans 30-89 days past due, totaled $29.1 million at March 31, 2015 compared to $25.8 million at December 31, 2014.  

Other real estate owned ("OREO") decreased $6.1 million to $27.9 million during the first quarter of 2015 from $34.0 million at December 31, 2014.  This net decrease reflected $2.8 million of OREO added through foreclosure, offset by sales of OREO of $6.7 million.  Write-downs in the value of existing properties were $2.2 million for the first quarter of 2015 compared to $2.4 million for the fourth quarter of 2014.  Sales of OREO during the first quarter of 2015 resulted in a net gain of $0.8 million compared to a net loss of $1.6 million for the fourth quarter of 2014.  At March 31, 2015, OREO was carried at 39.0 percent of the aggregate loan balances at the time of foreclosure, compared with 40.6 percent at December 31, 2014.

Noninterest Revenue

Noninterest revenue was $73.3 million for the first quarter of 2015, compared with $66.5 million for the first quarter of 2014 and $63.5 million for the fourth quarter of 2014.  These results included a negative MSR valuation adjustment of $3.0 million for the first quarter of 2015 compared with a negative MSR valuation adjustment of $1.5 million for the first quarter of 2014 and a negative MSR valuation adjustment of $3.4 million for the fourth quarter of 2014.  Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.   

Excluding the MSR valuation adjustments, net mortgage lending revenue was $11.6 million for the first quarter of 2015, compared with $4.9 million for the first quarter of 2014 and $6.7 million for the fourth quarter of 2014.  Mortgage origination volume for the first quarter of 2015 was $311.1 million, compared with $197.1 million for the first quarter of 2014 and $256.3 million for the fourth quarter of 2014.

Credit and debit card fee revenue was $8.5 million for the first quarter of 2015, compared with $7.8 million for the first quarter of 2014 and $9.9 million for the fourth quarter of 2014.  Deposit service charge revenue was $11.3 million for the first quarter of 2015, compared with $12.5 million for the first quarter of 2014 and $12.5 million for the fourth quarter of 2014.  Insurance commission revenue was $33.5 million for the first quarter of 2015, compared with $31.6 million for the first quarter of 2014 and $25.4 million for the fourth quarter of 2014.  Wealth management revenue was $6.2 million for the first quarter of 2015, compared with $5.9 million for the first quarter of 2014 and $5.8 million for the fourth quarter of 2014.    

Noninterest Expense

Noninterest expense for the first quarter of 2015 was $136.9 million, compared with $126.7 million for the first quarter of 2014 and $130.0 million for the fourth quarter of 2014.  Salaries and employee benefits expense was $81.2 million for the first quarter of 2015 compared to $78.9 million for the first quarter of 2014 and $76.8 million for the fourth quarter of 2014.  The current quarter increase was driven by a number of factors, including an increase in pension expense.  Total annual pension expense for 2015 is expected to be approximately $7 million higher than 2014 due to annual revisions to actuarial assumptions, including updates to the Society of Actuaries pension plan mortality tables.  Foreclosed property expense was $2.0 million for the first quarter of 2015 compared with $2.6 million for the first quarter of 2014 and $4.6 million for the fourth quarter of 2014.  Deposit insurance assessments were $2.3 million for the first quarter of 2015 compared to $1.6 million for the first quarter of 2014 and $2.4 million for the fourth quarter of 2014.  During the first quarter of 2015, the Company incurred expense of $5.5 million to increase its litigation accrual for probable losses related to certain ongoing legal matters.

Rollins added, "We continue to evaluate the profitability and performance of each of our locations.  Through location consolidations, we have reduced our full service branch count to 240 from 257 at the beginning of 2014."  The Company's current location count includes 240 full service branches, including remote drive-through facilities, 6 loan production offices, 12 stand-alone mortgage offices and 26 insurance locations.

Capital Management

The Company's equity capitalization is comprised entirely of common stock.  BancorpSouth's ratio of shareholders' equity to assets was 12.07 percent at March 31, 2015, compared with 11.83 percent at March 31, 2014 and 12.05 percent at December 31, 2014.  The ratio of tangible shareholders' equity to tangible assets was 9.99 percent at March 31, 2015, compared with 9.69 percent at March 31, 2014 and 9.92 percent at December 31, 2014.

Estimated regulatory capital ratios at March 31, 2015 were calculated in accordance with the Basel III capital framework.  BancorpSouth is a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 12.87 percent at March 31, 2015 and total risk based capital of 14.14 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, for "well capitalized" classification. 

Transaction Closings and Announcements

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 March 31, 2015, OIB, on a consolidated basis, reported total assets of $653.6 million, total loans of $462.1 million and total deposits of $545.3 million.  Under the terms of the definitive agreement, the Company will issue approximately 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 amended agreement provide for a minimum total deal value of $107.5 million but also allow Ouachita Bancshares Corp. to terminate the agreement if the average closing price of the Company's common stock declines below a certain threshold prior to closing.  The merger has been unanimously approved by the Board of Directors of each company and was approved by OIB shareholders on April 8, 2014.  On July 21, 2014, the Company announced the merger agreement was extended until June 30, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions, and, on February 25, 2015, the Company re-filed the merger application for the merger with Ouachita Bancshares Corp. with the appropriate regulatory agencies.  The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

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 March 31, 2015, Central Community Corporation, on a consolidated basis, reported total assets of $1.4 billion, total loans of $600.5 million and total deposits of $1.2 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 terms of the amended agreement provide for a minimum total deal value of $191.0 million but also allow Central Community Corporation to terminate the agreement if the average closing price of the Company's common stock declines below a certain threshold prior to closing.  The merger has been unanimously approved by the Board of Directors of each company and was approved by Central Community Corporation shareholders on April 24, 2014.  On July 21, 2014, the Company announced the merger agreement was extended until June 30, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions, and, on February 25, 2015, the Company re-filed the merger application for the merger with Central Community Corporation with the appropriate regulatory agencies.  The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

For additional information regarding the status of the merger with Ouachita Bancshares Corp. and the status of the merger with Central Community Corporation, please refer to the Current Report on Form 8-K that was previously filed with the Securities and Exchange Commission (the "SEC") on July 24, 2014, Part II, Item 5 of the Quarterly Report on Form 10-Q that was previously filed with the SEC on August 6, 2014, the Current Report on Form 8-K that was previously filed with the SEC on September 4, 2014, and the Annual Report on Form 10-K that was previously filed with the SEC on February 24, 2015.

On April 9, 2014, BancorpSouth Insurance Services, Inc. acquired 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 Lafayette.

Summary

Rollins concluded, "The momentum built over the last two years through the dedication and hard work of our team continues to drive the improved financial performance reflected in our first quarter results.  Particularly, our efforts to enhance our sales focus as well as hiring proven producers are yielding results.  We are growing the customer base in our bank and across all products.  We continue to benefit from improved credit quality as well.  Finally, we continue to focus on reducing operating expenses and improving efficiency.  I'm excited about the position of our Company and optimistic about our ability to continue to improve profitability." 

Conference Call

BancorpSouth will conduct a conference call to discuss its first quarter 2015 results on April 21, 2015, 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 $13.6 billion in assets.  BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 284 commercial banking, mortgage, and insurance locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.                                                                

Forward-Looking Statements

Certain statements contained in this news release may not be based 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 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," "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 terms, timing and closings of the proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program, the findings and results of the joint investigation by the Consumer Financial Protection Bureau (the "CFPB") and the United States Department of Justice ("DOJ") of the Company's fair lending practices, the acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company's products and services if the proposed mergers close, the outcome of any instituted, pending or threatened material litigation, amortization expense for intangible assets, goodwill impairments, loan impairment, 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, additions to OREO, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, continued weakness in the economic environment, 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, calculation of economic value of equity, impaired loan charge-offs, troubled debt restructurings, diversification of the Company's revenue stream, liquidity needs and strategies, sources of funding, net interest margin, declaration and payment of dividends, cost saving initiatives, improvement in the Company's efficiencies, operating expense trends, future acquisitions and consideration to be used therefor, the impact of litigation regarding debit card fees 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, the findings and results of the CFPB and the DOJ in their review of the Company's fair lending practices, the ability of the Company, Ouachita Bancshares Corp. and Central Community Corporation to obtain regulatory approval of and close the proposed mergers, the potential impact upon the Company of the delay in the closings of these proposed mergers, 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, losses resulting from the significant amount of the Company's OREO, 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 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 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 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 SEC.  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, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)














Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended


3/31/2015

12/31/2014

9/30/2014

6/30/2014

3/31/2014

Earnings Summary:






Interest revenue

$            113,497

$             114,237

$            113,922

$            111,499

$            110,599

Interest expense

7,424

7,792

8,309

8,418

9,076

Net interest revenue

106,073

106,445

105,613

103,081

101,523

Provision for credit losses

(5,000)

-

-

-

-

Net interest revenue, after provision






   for credit losses

111,073

106,445

105,613

103,081

101,523

Noninterest revenue

73,315

63,513

69,278

69,838

66,517

Noninterest expense

136,933

130,046

133,699

127,954

126,707

Income before income taxes

47,455

39,912

41,192

44,965

41,333

Income tax expense

15,189

11,252

12,414

14,097

12,889

Net income

$              32,266

$               28,660

$              28,778

$              30,868

$              28,444







Balance Sheet - Period End Balances






Total assets

$       13,630,322

$        13,326,369

$       13,071,557

$       12,985,887

$       13,143,555

Total earning assets

12,468,322

12,163,897

11,929,416

11,794,445

11,948,897

Total securities

2,194,373

2,156,927

2,211,462

2,332,192

2,426,758

Loans and leases, net of unearned income

9,726,970

9,712,936

9,510,542

9,311,661

9,068,376

Allowance for credit losses

136,660

142,443

143,950

147,132

149,704

Total deposits

11,252,654

10,972,339

10,701,537

10,670,414

10,811,790

Long-term debt

76,055

78,148

81,742

83,835

85,835

Total shareholders' equity

1,645,208

1,606,059

1,610,543

1,588,850

1,554,676







Balance Sheet - Average Balances






Total assets

$       13,457,668

$        13,131,130

$       12,987,103

$       12,933,879

$       13,087,128

Total earning assets

12,398,058

12,038,265

11,892,493

11,825,994

11,958,836

Total securities

2,190,989

2,180,000

2,272,114

2,394,045

2,452,178

Loans and leases, net of unearned income

9,670,987

9,579,059

9,393,709

9,232,743

9,022,155

Total deposits

11,126,210

10,802,194

10,662,841

10,650,077

10,825,308

Long-term debt

76,078

79,387

81,742

83,967

87,767

Total shareholders' equity

1,624,496

1,613,239

1,600,721

1,574,588

1,537,897







Nonperforming Assets:






Non-accrual loans and leases

$              54,418

$               58,052

$              54,612

$              64,533

$              77,531

Loans and leases 90+ days past due, still accruing

1,615

2,763

1,925

2,406

1,949

Restructured loans and leases, still accruing

5,433

10,920

12,398

6,712

13,776

Non-performing loans (NPLs)

61,466

71,735

68,935

73,651

93,256

Other real estate owned

27,889

33,984

42,691

55,253

63,595

Non-performing assets (NPAs)

$              89,355

$             105,719

$            111,626

$            128,904

$            156,851







Financial Ratios and Other Data:






Return on average assets

0.97%

0.87%

0.88%

0.96%

0.88%

Return on average shareholders' equity

8.06%

7.05%

7.13%

7.86%

7.50%

Return on tangible equity

9.84%

8.81%

8.83%

9.74%

9.28%

Pre-tax pre-provision return on average assets

1.29%

1.21%

1.26%

1.39%

1.28%

Noninterest income to average assets

2.21%

1.92%

2.12%

2.17%

2.06%

Noninterest expense to average assets

4.13%

3.93%

4.08%

3.97%

3.93%

Net interest margin-fully taxable equivalent

3.56%

3.60%

3.62%

3.59%

3.54%

Net interest rate spread

3.46%

3.49%

3.50%

3.48%

3.43%

Efficiency ratio (tax equivalent)

75.17%

75.25%

75.19%

72.76%

74.16%

Loan/deposit ratio

86.44%

88.52%

88.87%

87.27%

83.87%

Price to earnings mult (avg)

18.43

18.45

16.64

21.00

23.33

Market value to book value

136.26%

134.91%

120.13%

148.53%

154.13%

Market value to book value (avg)

127.91%

130.16%

129.54%

143.72%

150.43%

Market value to tangible book value

168.52%

167.95%

149.58%

185.73%

192.80%

Market value to tangible book value (avg)

158.20%

162.04%

161.30%

179.75%

188.17%

Headcount FTE

3,924

3,948

3,938

3,981

3,981













Credit Quality Ratios:






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

0.03%

0.06%

0.13%

0.11%

0.16%

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

(0.21%)

0.00%

0.00%

0.00%

0.00%

Allowance for credit losses to net loans and leases

1.40%

1.47%

1.51%

1.58%

1.65%

Allowance for credit losses to non-performing loans and leases

222.33%

198.57%

208.82%

199.77%

160.53%

Allowance for credit losses to non-performing assets

152.94%

134.74%

128.96%

114.14%

95.44%

Non-performing loans and leases to net loans and leases

0.63%

0.74%

0.72%

0.79%

1.03%

Non-performing assets to net loans and leases

0.92%

1.09%

1.17%

1.38%

1.73%







Equity Ratios:






Total shareholders' equity to total assets

12.07%

12.05%

12.32%

12.24%

11.83%

Tangible shareholders' equity to tangible assets

9.99%

9.92%

10.14%

10.03%

9.69%













Capital Adequacy:






Tier 1 capital

12.87%*

13.26%

13.18%

13.09%

13.18%

Total capital

14.14%*

14.52%

14.43%

14.35%

14.44%

Tier 1 leverage capital

10.30%*

10.55%

10.47%

10.33%

10.04%

   Estimated for current quarter












Common Share Data:






Basic earnings per share

$                  0.33

$                   0.30

$                  0.30

$                  0.32

$                  0.30

Diluted earnings per share

0.33

0.30

0.30

0.32

0.30

Cash dividends per share

0.08

0.08

0.08

0.05

0.05

Book value per share

17.04

16.69

16.77

16.54

16.19

Tangible book value per share

13.78

13.40

13.46

13.23

12.95

Market value per share (last)

23.22

22.51

20.14

24.57

24.96

Market value per share (high)

23.68

23.28

25.43

25.55

26.24

Market value per share (low)

19.64

19.22

20.11

22.16

22.46

Market value per share (avg)

21.80

21.72

21.72

23.78

24.36

Dividend payout ratio

22.40%

25.17%

25.03%

15.56%

16.80%

Total shares outstanding

96,544,502

96,254,903

96,065,021

96,046,057

96,004,679

Average shares outstanding - basic

96,359,885

96,173,000

96,052,260

96,034,475

95,629,890

Average shares outstanding - diluted

96,653,401

96,506,827

96,373,950

96,373,121

95,952,611













Yield/Rate:






(Taxable equivalent basis)






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

4.31%

4.30%

4.36%

4.38%

4.48%

Available-for-sale securities:






  Taxable

1.54%

1.43%

1.42%

1.45%

1.50%

  Tax-exempt

5.40%

5.30%

5.37%

5.44%

5.58%

Short-term investments

0.22%

0.24%

0.22%

0.24%

0.25%

  Total interest earning assets and revenue

3.80%

3.85%

3.89%

3.88%

3.85%

Deposits:

0.24%

0.25%

0.28%

0.28%

0.31%

  Demand - interest bearing

0.18%

0.18%

0.17%

0.17%

0.17%

  Savings

0.12%

0.12%

0.12%

0.12%

0.13%

  Other time

0.82%

0.87%

0.96%

0.97%

1.06%

Short-term borrowings

0.12%

0.11%

0.10%

0.09%

0.07%

Total int bearing dep & s/t borrowings

0.31%

0.33%

0.36%

0.37%

0.39%

Junior subordinated debt

2.84%

2.82%

2.81%

2.81%

2.86%

Long-term debt

2.88%

2.86%

2.85%

2.84%

2.91%

  Total interest bearing liabilities and expense

0.34%

0.36%

0.39%

0.40%

0.42%

Interest bearing liabilities to interest earning assets

71.13%

70.57%

71.07%

71.98%

73.51%

Net interest tax equivalent adjustment

$                2,653

$                 2,736

$                2,810

$                2,860

$                2,823







*Estimated regulatory capital ratios for the quarter ended March 31, 2015 were calculated in accordance with the Basel III capital framework.

 







BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)








Mar-15

Dec-14

Sep-14

Jun-14

Mar-14


(Dollars in thousands)

Assets






Cash and due from banks

$                199,337

$                204,231

$                169,226

$                201,196

$                199,214

Interest bearing deposits with other banks

360,469

153,019

70,408

44,949

390,896

Available-for-sale securities, at fair value

2,194,373

2,156,927

2,211,462

2,332,192

2,426,758

Loans and leases

9,761,555

9,749,540

9,546,250

9,347,429

9,103,850

  Less:

Unearned income

34,585

36,604

35,708

35,768

35,474


Allowance for credit losses

136,660

142,443

143,950

147,132

149,704

Net loans and leases

9,590,310

9,570,493

9,366,592

9,164,529

8,918,672

Loans held for sale

186,510

141,015

137,005

105,643

62,867

Premises and equipment, net

305,335

304,943

307,497

310,515

314,367

Accrued interest receivable

42,933

41,985

42,311

40,697

42,666

Goodwill

291,498

291,498

291,498

291,498

286,800

Other identifiable intangibles

23,476

24,508

25,619

26,745

25,021

Bank owned life insurance

246,148

247,076

243,827

241,962

240,077

Other real estate owned

27,889

33,984

42,691

55,253

63,595

Other assets

162,044

156,690

163,421

170,708

172,622

Total Assets

$           13,630,322

$           13,326,369

$           13,071,557

$           12,985,887

$           13,143,555

Liabilities






Deposits:






  Demand:

Noninterest bearing

$             2,914,949

$             2,778,686

$             2,811,156

$             2,718,242

$             2,725,042


Interest bearing

4,979,710

4,868,054

4,498,275

4,511,760

4,583,481

  Savings

1,395,857

1,331,963

1,311,874

1,299,203

1,297,344

  Other time

1,962,138

1,993,636

2,080,232

2,141,209

2,205,923

Total deposits

11,252,654

10,972,339

10,701,537

10,670,414

10,811,790

Federal funds purchased and






    securities sold under agreement






    to repurchase

384,829

388,166

431,428

394,446

456,303

Short-term Federal Home Loan Bank borrowings






   and other short-term borrowing

1,500

3,500

2,000

2,000

-

Accrued interest payable

3,371

3,400

3,894

3,926

4,050

Junior subordinated debt securities

23,198

23,198

23,198

23,198

23,198

Long-term debt

76,055

78,148

81,742

83,835

85,835

Other liabilities

243,507

251,559

217,215

219,218

207,703

Total Liabilities

11,985,114

11,720,310

11,461,014

11,397,037

11,588,879

Shareholders' Equity






Common stock

241,361

240,637

240,165

240,118

240,012

Capital surplus

331,016

324,271

322,488

321,952

320,969

Accumulated other comprehensive loss

(37,033)

(43,686)

(15,513)

(15,040)

(22,060)

Retained earnings

1,109,864

1,084,837

1,063,403

1,041,820

1,015,755

Total Shareholders' Equity

1,645,208

1,606,059

1,610,543

1,588,850

1,554,676

Total Liabilities & Shareholders' Equity

$           13,630,322

$           13,326,369

$           13,071,557

$           12,985,887

$           13,143,555







 







BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)








Mar-15

Dec-14

Sep-14

Jun-14

Mar-14


(Dollars in thousands)

Assets






Cash and due from banks

$                132,734

$                166,941

$                155,876

$                157,813

$                168,056

Interest bearing deposits with other banks

426,792

165,713

120,707

145,530

449,207

Available-for-sale securities, at fair value

2,190,989

2,180,000

2,272,114

2,394,045

2,452,178

Loans and leases

9,706,941

9,615,125

9,430,043

9,269,469

9,058,081

  Less:

Unearned income

35,954

36,066

36,334

36,726

35,926


Allowance for credit losses

141,299

143,842

146,592

149,676

153,615

Net loans and leases

9,529,688

9,435,217

9,247,117

9,083,067

8,868,540

Loans held for sale

109,291

113,493

105,964

53,676

35,297

Premises and equipment, net

305,277

306,630

309,373

313,012

315,804

Accrued interest receivable

39,279

39,034

38,758

38,291

39,336

Goodwill

291,498

291,498

291,498

293,082

286,800

Other identifiable intangibles

23,834

24,910

26,031

25,271

25,420

Bank owned life insurance

246,538

245,584

242,718

240,736

239,969

Other real estate owned

32,062

39,209

49,123

60,822

69,086

Other assets

129,686

122,901

127,824

128,534

137,435

Total Assets

$           13,457,668

$           13,131,130

$           12,987,103

$           12,933,879

$           13,087,128

Liabilities






Deposits:






  Demand:

Noninterest bearing

$             2,807,816

$             2,837,919

$             2,766,626

$             2,683,939

$             2,647,376


Interest bearing

4,985,577

4,617,998

4,480,008

4,492,495

4,657,785

  Savings

1,358,565

1,321,000

1,308,184

1,298,829

1,260,838

  Other time

1,974,252

2,025,277

2,108,023

2,174,814

2,259,309

Total deposits

11,126,210

10,802,194

10,662,841

10,650,077

10,825,308

Federal funds purchased and






    securities sold under agreement






    to repurchase

398,237

426,842

444,017

435,505

458,436

Short-term Federal Home Loan Bank borrowings






   and other short-term borrowing

3,056

2,261

6,489

3,621

-

Accrued interest payable

3,338

3,630

3,940

3,926

4,400

Junior subordinated debt securities

23,198

23,198

23,198

23,198

23,748

Long-term debt

76,078

79,387

81,742

83,967

87,767

Other liabilities

203,055

180,379

164,155

158,997

149,572

Total Liabilities

11,833,172

11,517,891

11,386,382

11,359,291

11,549,231

Shareholders' Equity






Common stock

240,992

240,436

240,123

240,071

238,853

Capital surplus

326,476

323,372

322,219

321,628

314,117

Accumulated other comprehensive loss

(39,529)

(22,747)

(14,827)

(16,663)

(23,644)

Retained earnings

1,096,557

1,072,178

1,053,206

1,029,552

1,008,571

Total Shareholders' Equity

1,624,496

1,613,239

1,600,721

1,574,588

1,537,897

Total Liabilities & Shareholders' Equity

$           13,457,668

$           13,131,130

$           12,987,103

$           12,933,879

$           13,087,128







 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)
















Quarter Ended


YTD


Mar-15


Dec-14


Sep-14


Jun-14


Mar-14


Mar-15


Mar-14

INTEREST REVENUE:














Loans and leases

$  102,135


$  103,172


$   102,681


$    99,962


$   98,744


$ 102,135


$  98,744

Deposits with other banks

236


101


68


87


276


236


276

Available-for-sale securities:














    Taxable

6,844


6,429


6,646


7,133


7,547


6,844


7,547

    Tax-exempt

3,377


3,471


3,607


3,669


3,715


3,377


3,715

Loans held for sale

905


1,064


920


648


317


905


317

        Total interest revenue

113,497


114,237


113,922


111,499


110,599


113,497


110,599















INTEREST EXPENSE:














Interest bearing demand

2,183


2,070


1,956


1,905


1,920


2,183


1,920

Savings

412


411


410


402


391


412


391

Other time

4,008


4,453


5,083


5,249


5,890


4,008


5,890

Federal funds purchased and securities sold














   under agreement to repurchase

82


89


84


80


78


82


78

Long-term debt

577


603


612


619


629


577


629

Junior subordinated debt

163


165


164


162


168


163


168

Other

(1)


1


-


1


-


(1)


-

        Total interest expense

7,424


7,792


8,309


8,418


9,076


7,424


9,076















        Net interest revenue

106,073


106,445


105,613


103,081


101,523


106,073


101,523

  Provision for credit losses

(5,000)


-


-


-


-


(5,000)


-

        Net interest revenue, after provision for














          credit losses

111,073


106,445


105,613


103,081


101,523


111,073


101,523















NONINTEREST REVENUE:














Mortgage lending

8,567


3,250


6,938


9,089


3,394


8,567


3,394

Credit card, debit card and merchant fees

8,539


9,921


8,972


8,567


7,843


8,539


7,843

Deposit service charges

11,252


12,538


13,111


12,437


12,536


11,252


12,536

Security gains (losses), net

14


18


18


5


(4)


14


(4)

Insurance commissions

33,493


25,376


29,246


28,621


31,599


33,493


31,599

Wealth Management

6,210


5,826


5,961


5,828


5,916


6,210


5,916

Other

5,240


6,584


5,032


5,291


5,233


5,240


5,233

        Total noninterest revenue

73,315


63,513


69,278


69,838


66,517


73,315


66,517















NONINTEREST EXPENSE:














Salaries and employee benefits

81,179


76,751


77,453


74,741


78,883


81,179


78,883

Occupancy, net of rental income

10,194


10,500


10,313


10,245


10,287


10,194


10,287

Equipment

3,974


3,996


4,205


4,169


4,499


3,974


4,499

Deposit insurance assessments

2,311


2,430


2,125


2,035


1,600


2,311


1,600

Other

39,275


36,369


39,603


36,764


31,438


39,275


31,438

        Total noninterest expenses

136,933


130,046


133,699


127,954


126,707


136,933


126,707

        Income before income taxes

47,455


39,912


41,192


44,965


41,333


47,455


41,333

Income tax expense

15,189


11,252


12,414


14,097


12,889


15,189


12,889

        Net income

$    32,266


$   28,660


$     28,778


$    30,868


$   28,444


$  32,266


$  28,444















Net income per share:

Basic

$       0.33


$       0.30


$        0.30


$       0.32


$       0.30


$      0.33


$      0.30


Diluted

$       0.33


$       0.30


$        0.30


$       0.32


$       0.30


$      0.33


$      0.30















 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Mar-15


Dec-14


Sep-14


Jun-14


Mar-14

LOAN AND LEASE PORTFOLIO:










Commercial and industrial

$  1,676,366


$ 1,746,486


$ 1,714,012


$ 1,699,803


$ 1,581,251

Real estate










   Consumer mortgages

2,301,112


2,257,726


2,191,265


2,071,503


2,047,001

   Home equity

538,042


531,374


518,263


506,988


498,283

   Agricultural

236,898


239,616


242,023


238,003


229,602

   Commercial and industrial-owner occupied

1,518,153


1,522,536


1,508,679


1,505,679


1,488,380

   Construction, acquisition and development

892,730


853,623


819,636


772,162


748,027

   Commercial real estate

1,993,473


1,961,977


1,916,577


1,901,759


1,847,983

Credit cards

106,287


113,426


109,464


109,186


105,988

All other

463,909


486,172


490,623


506,578


521,861

     Total loans

$  9,726,970


$ 9,712,936


$ 9,510,542


$ 9,311,661


$ 9,068,376











ALLOWANCE FOR CREDIT LOSSES:










Balance, beginning of period

$     142,443


$   143,950


$    147,132


$   149,704


$   153,236











Loans and leases charged-off:










Commercial and industrial

(383)


(1,179)


(306)


(860)


(201)

Real estate










   Consumer mortgages

(892)


(900)


(1,510)


(1,682)


(1,945)

   Home equity

(498)


(93)


(510)


(438)


(318)

   Agricultural

(8)


(4)


(47)


(18)


(696)

   Commercial and industrial-owner occupied

(394)


(220)


(1,229)


(936)


(1,206)

   Construction, acquisition and development

(343)


(566)


(1,458)


(41)


(1,666)

   Commercial real estate

(1,007)


(463)


(70)


(361)


(901)

Credit cards

(676)


(580)


(612)


(608)


(559)

All other

(579)


(847)


(743)


(671)


(583)

     Total loans charged-off

(4,780)


(4,852)


(6,485)


(5,615)


(8,075)











Recoveries:










Commercial and industrial

502


298


565


359


1,076

Real estate










   Consumer mortgages

612


821


952


956


538

   Home equity

241


102


157


182


184

   Agricultural

269


16


45


26


9

   Commercial and industrial-owner occupied

550


216


460


78


358

   Construction, acquisition and development

604


897


392


808


1,637

   Commercial real estate

720


623


286


226


323

Credit cards

153


160


116


135


131

All other

346


212


330


273


287

     Total recoveries

3,997


3,345


3,303


3,043


4,543











Net charge-offs

(783)


(1,507)


(3,182)


(2,572)


(3,532)











Provision charged to operating expense

(5,000)


-


-


-


-

Balance, end of period

$     136,660


$   142,443


$    143,950


$   147,132


$   149,704











Average loans for period

$  9,670,987


$ 9,579,059


$ 9,393,709


$ 9,232,743


$ 9,022,155











Ratio:










Net charge-offs to average loans (annualized)

0.03%


0.06%


0.13%


0.11%


0.16%











 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Mar-15


Dec-14


Sep-14


Jun-14


Mar-14

NON-PERFORMING ASSETS










NON-PERFORMING LOANS AND LEASES:










  Nonaccrual Loans and Leases










    Commercial and industrial

$      3,923


$         3,934


$         2,786


$      2,917


$         3,023

    Real estate










       Consumer mortgages

21,435


23,668


23,408


24,355


24,353

       Home equity

2,269


2,253


2,073


2,116


2,740

       Agricultural

259


291


638


595


651

       Commercial and industrial-owner occupied

9,687


11,190


7,495


11,094


14,122

       Construction, acquisition and development

5,111


4,162


6,070


9,202


9,968

       Commercial real estate

11,107


11,915


11,102


13,406


21,496

    Credit cards

118


133


168


132


168

    All other

509


506


872


716


1,010

         Total nonaccrual loans and leases

$    54,418


$       58,052


$       54,612


$    64,533


$       77,531











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










    Commercial and industrial

$          30


$             41


$             60


$        302


$            287

    Real estate










       Consumer mortgages

1,256


1,828


1,590


1,607


1,307

       Home equity

-


-


20


116


12

       Agricultural

-


-


-


100


-

       Commercial and industrial-owner occupied

-


39


-


-


-

       Construction, acquisition and development

-


387


-


-


-

       Commercial real estate

-


137


-


-


-

    Credit cards

329


327


255


281


297

    All other

-


4


-


-


46

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

1,615


2,763


1,925


2,406


1,949











  Restructured Loans and Leases, Still Accruing

5,433


10,920


12,398


6,712


13,776

     Total non-performing loans and leases

61,466


71,735


68,935


73,651


93,256











OTHER REAL ESTATE OWNED:

27,889


33,984


42,691


55,253


63,595











Total Non-performing Assets

$    89,355


$      105,719


$      111,626


$  128,904


$      156,851











Additions to Nonaccrual Loans and Leases During the Quarter

$    23,607


$       21,952


$       16,707


$    13,748


$       22,479











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










    Commercial and industrial

$      3,270


$         2,319


$         3,753


$      3,605


$         2,616

    Real estate










       Consumer mortgages

9,955


11,412


13,013


11,448


12,236

       Home equity

2,594


2,047


1,315


960


1,587

       Agricultural

161


366


190


1,122


302

       Commercial and industrial-owner occupied

3,026


912


2,364


6,340


3,248

       Construction, acquisition and development

5,471


4,811


1,036


1,616


2,848

       Commercial real estate

3,032


1,510


926


1,658


3,953

    Credit cards

581


739


602


556


592

    All other

1,014


1,698


1,196


1,490


963

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

$    29,104


$       25,814


$       24,395


$    28,795


$       28,345











Credit Quality Ratios:










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

(0.21%)


0.00%


0.00%


0.00%


0.00%

Allowance for credit losses to net loans and leases

1.40%


1.47%


1.51%


1.58%


1.65%

Allowance for credit losses to non-performing loans and leases

222.33%


198.57%


208.82%


199.77%


160.53%

Allowance for credit losses to non-performing assets

152.94%


134.74%


128.96%


114.14%


95.44%

Non-performing loans and leases to net loans and leases

0.63%


0.74%


0.72%


0.79%


1.03%

Non-performing assets to net loans and leases

0.92%


1.09%


1.17%


1.38%


1.73%











 

BancorpSouth, Inc.





Selected Loan Data





(Dollars in thousands)





(Unaudited)




















March 31, 2015




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$ 1,642,264


$            961


$       31,202


$          99


$                -


$    1,840


$ 1,676,366

Real estate














   Consumer mortgages

2,218,792


-


78,928


227


-


3,165


2,301,112

   Home equity

527,726


-


9,706


-


-


610


538,042

   Agricultural

225,990


-


10,908


-


-


-


236,898

   Commercial and industrial-owner occupied

1,457,229


-


54,801


242


-


5,881


1,518,153

   Construction, acquisition and development

851,938


-


37,303


329


-


3,160


892,730

   Commercial real estate

1,923,659


-


59,497


300


-


10,017


1,993,473

Credit cards

106,287


-


-


-


-


-


106,287

All other

451,174


-


12,571


-


-


164


463,909

     Total loans

$ 9,405,059


$            961


$      294,916


$      1,197


$                -


$  24,837


$ 9,726,970






























December 31, 2014




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$ 1,709,475


$            978


$       33,879


$            -


$                -


$    2,154


$ 1,746,486

Real estate














   Consumer mortgages

2,167,965


-


84,975


-


-


4,786


2,257,726

   Home equity

521,011


-


9,744


-


-


619


531,374

   Agricultural

227,688


-


11,928


-


-


-


239,616

   Commercial and industrial-owner occupied

1,450,158


-


64,420


491


-


7,467


1,522,536

   Construction, acquisition and development

811,227


-


39,675


334


-


2,387


853,623

   Commercial real estate

1,893,514


-


57,761


184


-


10,518


1,961,977

Credit cards

113,426


-


-


-


-


-


113,426

All other

471,662


-


14,340


-


-


170


486,172

     Total loans

$ 9,366,126


$            978


$      316,722


$      1,009


$                -


$  28,101


$ 9,712,936















 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)




















March 31, 2015


Alabama


















and Florida


















Panhandle


Arkansas


Louisiana


Mississippi


Missouri


Tennessee


Texas


Other


Total

LOAN AND LEASE PORTFOLIO:


















Commercial and industrial

$   189,823


$   208,990


$   217,749


$   555,594


$     77,274


$   135,672


$   267,825


$     23,439


$  1,676,366

Real estate


















   Consumer mortgages

195,923


286,833


193,390


774,883


68,048


239,586


374,743


167,706


2,301,112

   Home equity

74,805


37,890


56,275


212,510


21,507


125,541


8,063


1,451


538,042

   Agricultural

6,515


71,542


29,253


70,036


2,725


12,567


44,260


-


236,898

   Commercial and industrial-owner occupied

176,298


175,152


177,340


572,800


58,596


158,062


199,905


-


1,518,153

   Construction, acquisition and development

128,479


91,070


87,238


287,700


22,758


141,940


113,706


19,839


892,730

   Commercial real estate

288,445


336,170


247,765


486,219


201,241


179,111


204,190


50,332


1,993,473

Credit cards

-


-


-


-


-


-


-


106,287


106,287

All other

29,303


36,893


27,073


200,233


2,603


38,034


37,469


92,301


463,909

     Total loans

$ 1,089,591


$ 1,244,540


$ 1,036,083


$3,159,975


$   454,752


$ 1,030,513


$ 1,250,161


$   461,355


$  9,726,970



















NON-PERFORMING LOANS AND LEASES:


















Commercial and industrial

$       1,227


$         438


$         579


$      1,720


$             -


$             -


$           69


$         143


$        4,176

Real estate


















   Consumer mortgages

193


1,888


833


9,005


777


2,008


864


7,799


23,367

   Home equity

775


43


514


319


87


528


-


3


2,269

   Agricultural

79


31


14


73


-


61


-


1


259

   Commercial and industrial-owner occupied

293


1,043


1,033


8,222


973


938


81


2


12,585

   Construction, acquisition and development

906


196


-


1,067


255


2,692


-


2


5,118

   Commercial real estate

-


259


2,082


4,147


445


4,502


300


-


11,735

Credit cards

-


-


-


-


-


-


-


1,345


1,345

All other

-


42


138


238


-


193


-


1


612

     Total loans

$       3,473


$       3,940


$       5,193


$    24,791


$       2,537


$     10,922


$       1,314


$       9,296


$       61,466



















NON-PERFORMING LOANS AND LEASES


















   AS A PERCENTAGE OF OUTSTANDING:


















Commercial and industrial

0.65%


0.21%


0.27%


0.31%


0.00%


0.00%


0.03%


0.61%


0.25%

Real estate


















   Consumer mortgages

0.10%


0.66%


0.43%


1.16%


1.14%


0.84%


0.23%


4.65%


1.02%

   Home equity

1.04%


0.11%


0.91%


0.15%


0.40%


0.42%


0.00%


0.21%


0.42%

   Agricultural

1.21%


0.04%


0.05%


0.10%


0.00%


0.49%


0.00%


0.00%


0.11%

   Commercial and industrial-owner occupied

0.17%


0.60%


0.58%


1.44%


1.66%


0.59%


0.04%


0.00%


0.83%

   Construction, acquisition and development

0.71%


0.22%


0.00%


0.37%


1.12%


1.90%


0.00%


0.01%


0.57%

   Commercial real estate

0.00%


0.08%


0.84%


0.85%


0.22%


2.51%


0.15%


0.00%


0.59%

Credit cards

-


-


-


-


-


-


-


1.27%


1.27%

All other

0.00%


0.11%


0.51%


0.12%


0.00%


0.51%


0.00%


0.00%


0.13%

     Total loans

0.32%


0.32%


0.50%


0.78%


0.56%


1.06%


0.11%


2.01%


0.63%



















 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)




















March 31, 2015


Alabama


















and Florida


















Panhandle


Arkansas


Louisiana


Mississippi


Missouri


Tennessee


Texas


Other


Total

OTHER REAL ESTATE OWNED:


















Commercial and industrial

$          84


$                -


$                -


$            -


$                -


$             -


$           -


$           -


$          84

Real estate


















   Consumer mortgages

264


79


25


1,289


-


38


4


-


1,699

   Home equity

-


-


-


101


-


-


-


-


101

   Agricultural

-


-


-


25


-


-


-


-


25

   Commercial and industrial-owner occupied

199


-


-


1,424


-


307


60


-


1,990

   Construction, acquisition and development

3,886


84


139


16,069


-


2,627


-


-


22,805

   Commercial real estate

170


-


-


646


-


121


63


-


1,000

All other

-


27


-


99


-


59


-


-


185

     Total loans

$      4,603


$            190


$            164


$    19,653


$                -


$      3,152


$       127


$           -


$    27,889




















Quarter Ended










Mar-15


Dec-14


Sep-14


Jun-14


Mar-14









OTHER REAL ESTATE OWNED:


















Balance, beginning of period

$    33,984


$       42,691


$       55,253


$    63,595


$       69,338









Additions to foreclosed properties


















   New foreclosed property

2,804


2,257


3,476


4,144


4,855









Reductions in foreclosed properties


















   Sales

(6,726)


(8,548)


(14,429)


(10,269)


(8,767)









   Writedowns

(2,173)


(2,416)


(1,609)


(2,217)


(1,831)









Balance, end of period

$    27,889


$       33,984


$       42,691


$    55,253


$       63,595



























FORECLOSED PROPERTY EXPENSE


















(Gain) Loss on sale of other real estate owned

$       (779)


$         1,643


$         3,289


$      1,073


$            466









Writedown of other real estate owned

2,173


2,416


1,609


2,217


1,831









Other foreclosed property expense

577


534


823


912


258









Total foreclosed property expense

$      1,971


$         4,593


$         5,721


$      4,202


$         2,555



























 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)












Quarter Ended


Mar-15


Dec-14


Sep-14


Jun-14


Mar-14

NONINTEREST REVENUE:










Mortgage lending

$      8,567


$         3,250


$         6,938


$      9,089


$         3,394

Credit card, debit card and merchant fees

8,539


9,921


8,972


8,567


7,843

Deposit service charges

11,252


12,538


13,111


12,437


12,536

Securities gains, net

14


18


18


5


(4)

Insurance commissions

33,493


25,376


29,246


28,621


31,599

Trust income

4,036


3,791


3,537


3,624


3,568

Annuity fees

558


540


461


695


772

Brokerage commissions and fees

1,616


1,495


1,963


1,509


1,576

Bank-owned life insurance

1,899


3,249


1,865


1,885


1,849

Other miscellaneous income

3,341


3,335


3,167


3,406


3,384

     Total noninterest revenue

$    73,315


$       63,513


$       69,278


$    69,838


$       66,517











NONINTEREST EXPENSE:










Salaries and employee benefits

$    81,179


$       76,751


$       77,453


$    74,741


$       78,883

Occupancy, net of rental income

10,194


10,500


10,313


10,245


10,287

Equipment

3,974


3,996


4,205


4,169


4,499

Deposit insurance assessments

2,311


2,430


2,125


2,035


1,600

Amortization of bond issue cost

12


12


12


12


12

Advertising

781


1,233


1,192


1,331


632

Foreclosed property expense

1,971


4,593


5,721


4,202


2,555

Telecommunications

1,922


1,960


2,254


2,258


2,248

Public relations

570


770


950


857


822

Data processing

5,393


4,804


5,317


5,384


5,230

Computer software

2,606


2,763


2,488


2,851


2,423

Amortization of intangibles

1,032


1,111


1,126


1,148


1,058

Legal

7,681


2,322


2,620


3,002


1,878

Merger expense

(2)


4


188


1,010


560

Postage and shipping

1,172


1,239


1,103


1,116


1,287

Other miscellaneous expense

16,137


15,558


16,632


13,593


12,733

Total noninterest expense

$  136,933


$      130,046


$      133,699


$  127,954


$      126,707











INSURANCE COMMISSIONS:










Property and casualty commissions

$    20,673


$       19,007


$       22,746


$    21,576


$       19,987

Life and health commissions

5,412


5,521


5,128


5,549


5,010

Risk management income

666


621


708


617


705

Other

6,742


227


664


879


5,897

Total insurance commissions

$    33,493


$       25,376


$       29,246


$    28,621


$       31,599











 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)












Quarter Ended


Mar-15


Dec-14


Sep-14


Jun-14


Mar-14

MORTGAGE SERVICING RIGHTS:










Fair value, beginning of period

$     51,296


$       53,759


$       52,272


$     53,436


$       54,662

Additions to mortgage servicing rights:










   Originations of servicing assets

2,499


2,453


2,400


2,565


1,460

Changes in fair value:










   Due to payoffs/paydowns

(1,564)


(1,480)


(1,559)


(1,616)


(1,138)

   Due to change in valuation inputs or










     assumptions used in the valuation model

(3,039)


(3,434)


648


(2,111)


(1,547)

   Other changes in fair value

(2)


(2)


(2)


(2)


(1)

Fair value, end of period

$     49,190


$       51,296


$       53,759


$     52,272


$       53,436











Production revenue:










   Origination

$       8,914


$         3,949


$         3,736


$       8,758


$         1,964

   Servicing

4,256


4,215


4,113


4,058


4,115

   Payoffs/Paydowns

(1,564)


(1,480)


(1,559)


(1,616)


(1,138)

     Total production revenue

11,606


6,684


6,290


11,200


4,941

Market value adjustment

(3,039)


(3,434)


648


(2,111)


(1,547)

Total mortgage lending revenue

$       8,567


$         3,250


$         6,938


$       9,089


$         3,394











Mortgage loans serviced

$ 5,705,638


$   5,686,756


$   5,649,897


$ 5,630,192


$   5,568,828

MSR/mtg loans serviced

0.86%


0.90%


0.95%


0.93%


0.96%











AVAILABLE-FOR-SALE SECURITIES, at fair value










U.S. Government agencies

$ 1,286,981


$   1,215,054


$   1,238,088


$ 1,333,368


$   1,419,269

Government agency issued residential










   mortgage-back securities

200,381


209,230


218,748


229,414


241,596

Government agency issued commercial










   mortgage-back securities

227,409


240,568


237,325


237,321


234,059

Obligations of states and political subdivisions

471,539


483,864


509,304


520,897


523,811

Other

8,063


8,211


7,997


11,192


8,023

Total available-for-sale securities

$ 2,194,373


$   2,156,927


$   2,211,462


$ 2,332,192


$   2,426,758











 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

























Management evaluates the Company's capital position and operating performance by utilizing certain financial measures not calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including pre-tax, pre-provision earnings, net operating income, tangible shareholders' equity to tangible assets, return on tangible equity, pre-tax pre-provision return on average assets, tangible book value per share, and operating earnings per share.  The Company has included these non-GAAP financial measures in this news release for the applicable periods presented.  Management believes that the presentation of these non-GAAP financial measures (i) provides important supplemental information that contributes to a proper understanding of the Company's operating performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to Management, the financial services industry, bank stock analysts and bank regulators.  Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below.  These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure.  In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names.













Reconciliation of Pre-tax, Pre-provision Earnings and Net Operating Income to Net Income:
















Quarter ended




3/31/2015


12/31/2014


9/30/2014


6/30/2014


3/31/2014













Net income


$          32,266


$          28,660


$          28,778


$          30,868


$         28,444

Plus:

Provision for credit losses


(5,000)


-


-


-


-


Income tax expense


15,189


11,252


12,414


14,097


12,889

Pre-tax, pre-provision earnings


$          42,455


$          39,912


$          41,192


$          44,965


$         41,333













Net income


$          32,266


$          28,660


$          28,778


$          30,868


$         28,444

Plus:

Merger expense, net of tax


(1)


2


117


626


347


One time charge for BSA, net of tax


-


-


1,903


-


-

Net operating income


$          32,265


$          28,662


$          30,798


$          31,494


$         28,791













 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)





































Reconciliation of Tangible Assets and Tangible Shareholders' Equity to 





Total Assets and Total Shareholders' Equity:




















Quarter ended




3/31/2015


12/31/2014


9/30/2014


6/30/2014


3/31/2014

Tangible assets











Total assets


$    13,630,322


$    13,326,369


$    13,071,557


$    12,985,887


$   13,143,555

Less:  

Goodwill


291,498


291,498


291,498


291,498


286,800


Other identifiable intangible assets


23,476


24,508


25,619


26,745


25,021

Total tangible assets


$    13,315,348


$    13,010,363


$    12,754,440


$    12,667,644


$   12,831,734













Tangible shareholders' equity











Total shareholders' equity


$     1,645,208


$     1,606,059


$     1,610,543


$      1,588,850


$    1,554,676

Less:

Goodwill


291,498


291,498


291,498


291,498


286,800


Other identifiable intangible assets


23,476


24,508


25,619


26,745


25,021

Total tangible shareholders' equity


$     1,330,234


$     1,290,053


$     1,293,426


$      1,270,607


$    1,242,855













Total average assets


$    13,457,668


$    13,131,130


$    12,987,103


$    12,933,879


$   13,087,128

Total common shares outstanding


96,544,502


96,254,903


96,065,021


96,046,057


96,004,679

Average shares outstanding-diluted


96,653,401


96,506,827


96,373,950


96,373,121


95,952,611













Tangible shareholders' equity to tangible assets*


9.99%


9.92%


10.14%


10.03%


9.69%

Return on tangible equity **


9.84%


8.81%


8.83%


9.74%


9.28%

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


1.29%


1.21%


1.26%


1.39%


1.28%

Tangible book value per share****


$           13.78


$           13.40


$           13.46


$            13.23


$          12.95

Operating earnings per share*****


$             0.33


$             0.30


$             0.32


$              0.33


$            0.30

























*

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.













*****

Operating earnings per share is defined by the Company as net operating income divided by average shares outstanding-diluted.

 

SOURCE BancorpSouth, Inc.