BancorpSouth, Inc.
-- A $27.6 million increase in the provision for credit losses; a $4.5
million increase in foreclosed property expense, which included $3.8
million for a valuation allowance; a $2.3 million expense related to a
specific litigation matter; and a reversal of interest income totaling
$606,000 related to loans placed on non-accrual.
-- A $21.6 million, or $0.26 per diluted share, reduction in net income,
producing a net loss of $2.1 million, or $0.03 per diluted share, for
the fourth quarter of 2009 and net income of $82.7 million, or $0.99
per diluted share, for the full-year 2009.
-- Nonperforming loans and leases of $186.5 million, or 1.91 percent of
net loans and leases at year end.
-- Annualized net charge-offs of 1.27 percent of average loans and leases
for the fourth quarter of 2009 and 0.76 percent for full-year 2009.
-- An allowance for credit losses at year-end that was equal to 2.4 times
net charge-offs for 2009 and 94 percent of non-performing loans and
leases. The allowance for credit losses at year end was 1.80 percent
of net loans and leases.
-- A ratio of shareholders' equity to assets of 9.69 percent at the end
of 2009 and tangible equity to assets of 7.63 percent. Year-end Tier
1 risk-based capital of 11.17 percent and total risk-based capital of
12.42 percent compared favorably with required minimum levels of 6
percent and 10 percent, respectively, to meet the definition of "well
capitalized" under federal regulations.
Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth, commented, "BancorpSouth has completed an in-depth review of asset quality and adequacy of its allowance for credit losses. In February, it became necessary to determine whether certain additional provisions should be made in the fourth quarter of 2009. Working in conjunction with our independent auditors, we concluded that these matters should be included in the results of operations for the fourth quarter of 2009.
"The Company undertook a very thorough review of credit quality and adequacy of the allowance for credit losses, focusing especially on the real estate acquisition and development portfolio. As a result of this review, we determined that $27.6 million should be added to the provision as a result of rating downgrades and impairments.
"Given the deterioration in real estate values generally, we also determined that the Company should write down the net carrying value of other real estate owned by $4.5 million. This write-down included the establishment of a valuation reserve of $3.8 million for losses in other real estate owned. Another factor was the conclusion of a pending litigation matter in March 2010, which resulted in an additional litigation reserve of $2.3 million. The net effect of these and less significant individual adjustments resulted in essentially a break-even fourth quarter and annual earnings for 2009 of $82.7 million.
"To ensure an even stronger focus on credit quality in this difficult economic environment, the Company is currently taking steps to establish a centralized real estate risk management group which will add strength and direction to improved procedures for real estate appraisal processes, early identification and impairment of troubled credits, and generally tightened controls on all aspects of administration of this portfolio.
"As a result of our review, the allowance for credit losses was a 2.4 multiple of 2009 net charge-offs and 94 percent of non-performing loans at year end. I am confident that these enhanced reserves place the Company's balance sheet in an extremely strong position."
Conference Call
BancorpSouth will conduct a conference call to discuss the Company's filing of its Annual Report on Form 10-K for 2009 tomorrow, March 16, 2010, at 8:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com/. Related presentation materials will be posted to the Company's website prior to the call. A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.
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 asset quality, allowance and provision for credit losses, reserves, the establishment of a commercial real estate risk management group and the continuation of the economic downturn.
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, changes in general business or economic conditions or government fiscal and monetary policies, volatility and disruption in national and international financial markets, fluctuations in prevailing interest rates and the ability of BancorpSouth to manage its assets and liabilities to limit exposure to changing interest rates, the ability of BancorpSouth to increase noninterest revenue and expand noninterest revenue business, the ability of BancorpSouth to maintain credit quality, changes in laws and regulations affecting financial service companies in general, the ability of BancorpSouth to compete with other financial services companies, the ability of BancorpSouth to provide and market competitive services and products, changes in BancorpSouth's operating or expansion strategy, BancorpSouth's business model, geographic concentration of BancorpSouth's assets, the ability of BancorpSouth to manage its growth and effectively serve an expanding customer and market base, the ability of BancorpSouth to achieve profitable growth and increase shareholder value, the ability of BancorpSouth to attract, train and retain qualified personnel, the ability of BancorpSouth to identify, close and effectively integrate potential acquisitions, the ability of BancorpSouth to expand geographically and enter growing markets, changes in consumer preferences, other factors generally understood to affect the financial results of financial services companies, and other factors described from time to time in BancorpSouth's filings with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.2 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 314 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas. BancorpSouth Bank also operates an insurance location in Illinois.
BancorpSouth, Inc.
Selected Financial Data
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
(Dollars in thousands,
except per share amounts)
Earnings Summary:
Net interest revenue $112,347 $111,321 $444,899 $440,836
Provision for credit losses 62,271 17,822 117,324 56,176
Noninterest revenue 64,505 40,085 275,276 245,607
Noninterest expense 123,361 111,728 490,017 455,913
------- ------- ------- -------
Income (loss) before
income taxes (8,780) 21,856 112,834 174,354
Income tax provision (6,634) 5,060 30,105 53,943
------- ----- ------ ------
Net income (loss) ($2,146) $16,796 $82,729 $120,411
======== ======= ======= ========
Earning (loss) per share:
Basic ($0.03) $0.20 $0.99 $1.46
======= ===== ===== =====
Diluted ($0.03) $0.20 $0.99 $1.45
======= ===== ===== =====
Balance sheet data at
December 31:
Total assets $13,167,867 $13,480,218
Total earning assets 11,939,776 12,210,439
Loans and leases, net of
unearned income 9,775,136 9,691,277
Allowance for credit losses 176,043 132,793
Total deposits 10,677,702 9,711,872
Common shareholders' equity 1,276,296 1,240,260
Book value per share 15.29 14.92
Average balance sheet data:
Total assets $13,065,172 $13,279,593 $13,203,659 $13,200,801
Total earning assets 11,966,504 12,109,660 12,078,437 12,037,141
Loans and leases, net of
unearned interest 9,750,989 9,604,142 9,734,580 9,429,963
Total deposits 10,448,617 9,598,321 10,155,730 9,803,999
Common shareholders'
equity 1,266,989 1,239,498 1,255,605 1,224,280
Non-performing assets at
December 31:
Non-accrual loans and
leases $144,013 $28,168
Loans and leases 90+ days
past due, still accruing 36,301 33,373
Restructured loans and
leases, still accruing 6,161 2,472
Other real estate owned 59,265 46,317
------ ------
Total non-performing assets 245,740 110,330
Net charge-offs as a
percentage of average loans
(annualized) 1.27% 0.57% 0.76% 0.40%
Performance ratios
(annualized):
Return on average assets (0.07%) 0.50% 0.63% 0.91%
Return on common equity (0.67%) 5.39% 6.59% 9.84%
Total shareholders'
equity to total assets 9.69% 9.20% 9.69% 9.20%
Tangible shareholders'
equity to tangible assets 7.63% 7.15% 7.63% 7.15%
Net interest margin 3.81% 3.74% 3.77% 3.75%
Average shares outstanding
- basic 83,399,113 83,096,799 83,295,461 82,589,400
Average shares outstanding
- diluted 83,527,596 83,239,216 83,430,505 82,793,663
Cash dividends per share $0.22 $0.22 $0.88 $0.87
Tier I capital 11.17% 10.79% 11.17% 10.79%
Total Capital 12.42% 12.04% 12.42% 12.04%
Tier I leverage capital 8.95% 8.65% 8.95% 8.65%
BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
Dec-09 Sep-09 Jun-09
------ ------ ------
(Dollars in thousands)
Assets
Cash and due from banks $222,741 $189,103 $236,327
Interest bearing deposits with
other banks 15,704 43,067 28,836
Held-to-maturity securities, at
amortized cost 1,032,822 1,180,716 1,204,618
Available-for-sale securities, at
fair value 960,772 958,158 969,207
Federal funds sold and securities
purchased under agreement to
resell 75,000 75,000 -
Loans and leases 9,822,986 9,803,235 9,806,735
Less: Unearned income 47,850 45,291 45,335
Allowance for credit losses 176,043 144,791 138,747
------- ------- -------
Net loans and leases 9,599,093 9,613,153 9,622,653
Loans held for sale 80,343 80,053 94,736
Premises and equipment, net 343,877 346,931 348,661
Accrued interest receivable 68,651 74,589 71,349
Goodwill 270,097 270,097 270,097
Bank owned life insurance 187,770 189,043 185,822
Other assets 310,997 251,963 265,513
------- ------- -------
Total Assets $13,167,867 13,271,873 13,297,819
=========== ========== ==========
Liabilities
Deposits:
Demand: Noninterest bearing $1,901,663 1,769,432 1,773,418
Interest bearing 4,323,646 4,055,395 3,960,008
Savings 725,192 712,446 718,302
Other time 3,727,201 3,759,761 3,705,819
--------- --------- ---------
Total deposits 10,677,702 10,297,034 10,157,547
Federal funds purchased and
securities sold under agreement
to repurchase 539,870 816,374 755,609
Short-term Federal Home Loan Bank
borrowings and other short-term
borrowing 203,500 200,000 475,000
Accrued interest payable 19,588 24,243 24,084
Junior subordinated debt securities 160,312 160,312 160,312
Long-term Federal Home Loan Bank
borrowings 112,771 286,281 286,292
Other liabilities 177,828 201,411 164,028
------- ------- -------
Total Liabilities 11,891,571 11,985,655 12,022,872
Shareholders' Equity
Common stock 208,626 208,615 208,391
Capital surplus 222,547 222,135 220,859
Accumulated other comprehensive
income (loss) (8,409) (18,568) (25,162)
Retained earnings 853,532 874,036 870,859
------- ------- -------
Total Shareholders' Equity 1,276,296 1,286,218 1,274,947
--------- --------- ---------
Total Liabilities & Shareholders'
Equity $13,167,867 $13,271,873 $13,297,819
=========== =========== ===========
Mar-09 Dec-08
------ ------
Assets (Dollars in thousands)
Cash and due from banks $242,180 $291,055
Interest bearing deposits with other banks 34,230 13,542
Held-to-maturity securities, at
amortized cost 1,330,810 1,333,521
Available-for-sale securities, at
fair value 993,529 982,859
Federal funds sold and securities
purchased under agreement to resell - -
Loans and leases 9,759,787 9,740,867
Less: Unearned income 46,964 49,590
Allowance for credit losses 134,632 132,793
------- -------
Net loans and leases 9,578,191 9,558,484
Loans held for sale 168,769 189,242
Premises and equipment, net 348,734 351,204
Accrued interest receivable 77,503 79,183
Goodwill 269,062 268,966
Bank owned life insurance 184,026 182,272
Other assets 231,330 229,890
------- -------
Total Assets 13,458,364 13,480,218
========== ==========
Liabilities
Deposits:
Demand: Noninterest bearing 1,820,807 1,735,130
Interest bearing 4,005,620 3,904,307
Savings 719,676 678,326
Other time 3,545,871 3,394,109
--------- ---------
Total deposits 10,091,974 9,711,872
Federal funds purchased and
securities sold under agreement
to repurchase 1,256,649 1,205,366
Short-term Federal Home Loan Bank borrowings
and other short-term borrowing 210,000 691,510
Accrued interest payable 22,841 20,755
Junior subordinated debt securities 160,312 160,312
Long-term Federal Home Loan Bank borrowings 286,302 286,312
Other liabilities 174,627 163,831
------- -------
Total Liabilities 12,202,705 12,239,958
Shareholders' Equity
Common stock 207,811 207,763
Capital surplus 216,138 215,255
Accumulated other comprehensive income
(loss) (23,620) (26,896)
Retained earnings 855,330 844,138
------- -------
Total Shareholders' Equity 1,255,659 1,240,260
--------- ---------
Total Liabilities & Shareholders' Equity $13,458,364 $13,480,218
=========== ===========
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended
-------------------------------------------------
Dec-09 Sep-09 Jun-09 Mar-09 Dec-08
-------- -------- -------- -------- --------
INTEREST REVENUE:
Loans and leases $129,086 $129,455 $129,263 $129,209 $139,099
Deposits with other
banks 19 20 22 70 111
Federal funds sold
and securities
purchased under
agreement to resell 43 27 3 1 3
Held-to-maturity
securities:
Taxable 10,128 11,690 12,108 13,031 13,625
Tax-exempt 2,393 2,193 2,155 2,111 2,053
Available-for-sale
securities:
Taxable 8,675 8,592 8,721 9,038 8,693
Tax-exempt 875 812 826 883 867
Loans held for sale 777 698 1,215 1,275 2,117
-------- -------- -------- -------- --------
Total interest
revenue 151,996 153,487 154,313 155,618 166,568
-------- -------- -------- -------- --------
INTEREST EXPENSE:
Interest bearing demand 9,023 9,038 9,738 12,248 15,924
Savings 900 937 927 936 1,080
Other time 23,445 25,534 26,496 25,833 28,293
Federal funds purchased
and securities sold
under agreement to
repurchase 305 331 421 572 2,175
FHLB borrowings 3,012 2,877 2,885 2,823 4,537
Junior subordinated debt 2,863 2,884 2,928 2,955 3,162
Other 101 150 (22) 375 76
-------- -------- -------- -------- --------
Total interest
expense 39,649 41,751 43,373 45,742 55,247
-------- -------- -------- -------- --------
Net interest
revenue 112,347 111,736 110,940 109,876 111,321
Provision for credit
losses 62,271 22,514 17,594 14,945 17,822
-------- -------- -------- -------- --------
Net interest
revenue, after
provision for
credit losses 50,076 89,222 93,346 94,931 93,499
-------- -------- -------- -------- --------
NONINTEREST REVENUE:
Mortgage lending 8,602 2,012 13,959 7,652 (12,174)
Credit card, debit card
and merchant fees 7,883 8,902 9,111 8,348 8,409
Service charges 18,689 19,049 18,371 16,755 19,295
Trust income 3,014 2,435 2,040 2,209 2,328
Security gains (losses),
net (102) - 42 5 (6,226)
Insurance commissions 17,583 20,134 20,575 22,645 18,752
Other 8,836 9,943 16,380 10,204 9,701
-------- -------- -------- -------- --------
Total noninterest
revenue 64,505 62,475 80,478 67,818 40,085
-------- -------- -------- -------- --------
NONINTEREST EXPENSES:
Salaries and employee
benefits 66,926 70,353 70,092 71,363 64,395
Occupancy, net of rental
income 10,897 10,720 10,492 9,999 10,307
Equipment 5,578 5,853 5,855 6,222 6,319
Deposit insurance
assessments 3,786 3,402 9,358 3,126 1,444
Other 36,174 32,344 28,209 29,268 29,263
-------- -------- -------- -------- --------
Total noninterest
expenses 123,361 122,672 124,006 119,978 111,728
-------- -------- -------- -------- --------
Income (loss)
before income
taxes (8,780) 29,025 49,818 42,771 21,856
Income tax expense
(credit) (6,634) 7,494 15,951 13,294 5,060
-------- -------- -------- -------- --------
Net income (loss) ($2,146) $21,531 $33,867 $29,477 $16,796
======== ======== ======== ======== ========
Net income (loss)
per share:
Basic ($0.03) $0.26 $0.41 $0.35 $0.20
======== ======== ======== ======== ========
Diluted ($0.03) $0.26 $0.41 $0.35 $0.20
======== ======== ======== ======== ========
Year To Date
---------------------
Dec-09 Dec-08
-------- --------
INTEREST REVENUE:
Loans and leases $517,013 $589,965
Deposits with other banks 131 684
Federal funds sold and securities purchased
under agreement to resell 74 288
Held-to-maturity securities:
Taxable 46,957 58,679
Tax-exempt 8,852 8,112
Available-for-sale securities:
Taxable 35,026 35,813
Tax-exempt 3,396 4,205
Loans held for sale 3,965 7,667
-------- --------
Total interest revenue 615,414 705,413
-------- --------
INTEREST EXPENSE:
Interest bearing demand 40,047 60,333
Savings 3,700 5,280
Other time 101,308 148,591
Federal funds purchased and securities sold
under agreement to repurchase 1,629 14,999
FHLB borrowings 11,597 22,458
Junior subordinated debt 11,630 12,469
Other 604 447
-------- --------
Total interest expense 170,515 264,577
-------- --------
Net interest revenue 444,899 440,836
Provision for credit losses 117,324 56,176
-------- --------
Net interest revenue, after provision for
credit losses 327,575 384,660
-------- --------
NONINTEREST REVENUE:
Mortgage lending 32,225 2,146
Credit card, debit card and merchant fees 34,244 33,743
Service charges 72,864 77,091
Trust income 9,698 9,330
Security gains (losses), net (55) (5,849)
Insurance commissions 80,937 86,661
Other 45,363 42,485
-------- --------
Total noninterest revenue 275,276 245,607
-------- --------
NONINTEREST EXPENSES:
Salaries and employee benefits 278,734 271,556
Occupancy, net of rental income 42,108 39,846
Equipment 23,508 25,211
Deposit insurance assessments 19,672 2,852
Other 125,995 116,448
-------- --------
Total noninterest expenses 490,017 455,913
-------- --------
Income (loss) before income taxes 112,834 174,354
Income tax expense (credit) 30,105 53,943
-------- --------
Net income (loss) $82,729 $120,411
======== ========
Net income (loss) per share:
Basic $0.99 $1.46
======== ========
Diluted $0.99 $1.45
======== ========
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-----------------------------------------------------
Dec-09 Sep-09 Jun-09 Mar-09 Dec-08
------ ------ ------ ------ ------
LOAN AND LEASE
PORTFOLIO:
Commercial and
industrial $1,466,569 $1,442,344 $1,441,718 $1,390,042 $1,417,499
Real estate
Consumer
mortgages 2,017,067 2,046,433 2,054,666 2,037,439 2,096,568
Home equity 550,085 540,875 532,337 519,528 511,480
Agricultural 262,069 254,647 242,034 238,466 234,024
Commercial and
industrial-owner
occupied 1,449,554 1,432,859 1,394,852 1,455,422 1,465,027
Construction,
acquisition and
development 1,459,503 1,533,622 1,652,052 1,692,526 1,689,719
Commercial 1,806,766 1,770,066 1,719,044 1,660,211 1,568,956
Credit cards 108,086 103,208 101,844 98,450 93,650
All other 655,437 633,890 622,853 620,739 614,354
---------- ---------- ---------- ---------- ----------
Total loans $9,775,136 $9,757,944 $9,761,400 $9,712,823 $9,691,277
---------- ---------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT
LOSSES:
Balance, beginning
of period $144,791 $138,746 $134,632 $132,793 $129,147
Loans and leases charged off:
Commercial and
industrial (3,404) (3,913) (1,070) (1,147) (1,003)
Real estate
Consumer mortgages (2,298) (2,669) (4,877) (4,073) (3,582)
Home equity (1,835) (1,278) (1,106) (1,153) (596)
Agricultural (401) (407) (3) (37) (350)
Commercial and
industrial-owner
occupied (753) (1,795) (649) (836) (511)
Construction,
acquisition and
development (20,766) (3,160) (4,335) (4,377) (6,208)
Commercial (568) (2,135) (321) (560) (611)
Credit cards (1,118) (1,204) (1,290) (1,158) (953)
All other (954) (938) (815) (810) (953)
---------- ---------- ---------- ---------- ----------
Total loans
charged off (32,097) (17,499) (14,466) (14,151) (14,767)
---------- ---------- ---------- ---------- ----------
Recoveries:
Commercial and
industrial 194 320 68 179 279
Real estate
Consumer mortgages 209 132 263 220 174
Home equity 76 28 2 3 1
Agricultural - - - 2 -
Commercial and
industrial-owner
occupied 10 31 248 8 54
Construction,
acquisition and
development 7 31 4 86 97
Commercial 25 108 - 56 23
Credit cards 216 123 140 138 99
All other 341 257 261 353 290
---------- ---------- ---------- ---------- ----------
Total recoveries 1,078 1,030 986 1,045 1,017
---------- ---------- ---------- ---------- ----------
Net charge-offs (31,019) (16,469) (13,480) (13,106) (13,750)
Provision charged to
operating expense 62,271 22,514 17,594 14,945 17,822
Other, net - - - - (426)
---------- ---------- ---------- ---------- ----------
Balance, end of
period $176,043 $144,791 $138,746 $134,632 $132,793
---------- ---------- ---------- ---------- ----------
Average loans for
period $9,750,989 $9,750,159 $9,740,916 $9,695,475 $9,604,142
========== ========== ========== ========== ==========
Ratios:
Net charge-offs to
average loans
(annualized) 1.27% 0.68% 0.55% 0.54% 0.57%
========== ========== ========== ========== ==========
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
----------------------------------------------
Dec-09 Sep-09 Jun-09 Mar-09 Dec-08
------ ------ ------ ------ ------
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND
LEASES:
Nonaccrual Loans and Leases
Commercial and
industrial $4,852 $7,048 $7,364 $5,523 $7,378
Real estate
Consumer mortgages 20,731 12,433 9,946 8,398 4,599
Home equity 1,642 1,879 596 100 143
Agricultural 1,136 2,647 970 673 440
Commercial and industrial-
owner occupied 7,039 5,044 2,631 4,153 1,768
Construction, acquisition
and development 82,170 39,989 21,742 17,984 12,393
Commercial 23,209 12,228 1,023 925 432
Credit cards 1,044 850 816 939 952
All other 2,190 614 454 241 63
------- ------ ------ ------ ------
Total nonaccrual loans
and leases 144,013 82,732 45,542 38,936 28,168
------- ------ ------ ------ ------
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and
industrial 1,797 1,062 1,919 1,489 715
Real estate
Consumer mortgages 9,905 14,189 9,961 7,110 13,371
Home equity 810 707 1,651 1,375 796
Agricultural 1,015 289 3,292 421 409
Commercial and industrial-
owner occupied 4,511 1,342 4,253 2,982 2,761
Construction, acquisition
and development 13,482 1,477 18,648 11,372 12,481
Commercial 2,558 305 2,351 1,021 1,013
Credit cards 355 373 476 391 463
All other 1,868 955 1,315 1,138 1,364
------- ------ ------ ------ ------
Total loans and leases 90+
past due, still
accruing 36,301 20,699 43,866 27,299 33,373
------- ------ ------ ------ ------
Restructured Loans and
Leases, Still Accruing 6,161 8,205 8,264 7,581 2,472
------- ------ ------ ------ ------
Total non-performing loans
and leases 186,475 111,636 97,672 73,816 64,013
------- ------ ------ ------ ------
OTHER REAL ESTATE OWNED: 59,265 62,072 51,477 47,450 46,317
------- ------ ------ ------ ------
Total Non-performing
Assets $245,740 $173,708 $149,149 $121,266 $110,330
======== ======== ======== ======== ========
Credit Quality Ratios:
Provision for credit
losses to average loans
and leases (annualized) 2.55% 0.92% 0.72% 0.62% 0.74%
Allowance for credit
losses to net loans and
leases 1.80% 1.48% 1.42% 1.39% 1.37%
Allowance for credit
losses to non-performing
assets 71.64% 83.35% 93.03% 111.02% 120.36%
Allowance for credit
losses to non-performing
loans and leases 94.41% 129.70% 142.05% 182.39% 207.45%
Non-performing loans and
leases to net loans and
leases 1.91% 1.14% 1.00% 0.76% 0.66%
Non-performing assets to
net loans and leases 2.51% 1.77% 1.53% 1.25% 1.14%
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
December 31, 2009
---------------------------
Average Yield/
Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,821,066 $130,671 5.28%
Held-to-maturity securities:
Taxable 878,452 10,239 4.62%
Tax-exempt 209,242 3,682 6.98%
Available-for-sale securities:
Taxable 892,191 8,676 3.86%
Tax-exempt 72,902 1,344 7.31%
Short-term investments 92,651 61 0.26%
------ --
Total interest earning
assets and revenue 11,966,504 154,673 5.13%
Other assets 1,267,510
Less: allowance for credit
losses (168,842)
-------
Total $13,065,172
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,155,330 $9,023 0.86%
Savings 717,630 900 0.50%
Other time 3,748,894 23,445 2.48%
Short-term borrowings 713,972 405 0.23%
Junior subordinated debt 160,312 2,865 7.09%
Long-term debt 303,301 3,011 3.94%
------- -----
Total interest bearing
liabilities and expense 9,799,439 39,649 1.61%
Demand deposits -
noninterest bearing 1,826,763
Other liabilities 171,981
----------------- -------
Total liabilities 11,798,183
Shareholders' equity 1,266,989
---------
Total $13,065,172
=========== --------
Net interest revenue $115,024
========
Net interest margin 3.81%
Net interest rate spread 3.52%
Interest bearing liabilities to
interest earning assets 81.89%
Net interest tax equivalent
adjustment $2,677
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
September 30, 2009
------------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,808,427 $130,957 5.30%
Held-to-maturity securities:
Taxable 998,773 11,799 4.69%
Tax-exempt 199,360 3,373 6.71%
Available-for-sale securities:
Taxable 889,278 8,591 3.83%
Tax-exempt 69,737 1,251 7.12%
Short-term investments 62,334 47 0.30%
------ ---
Total interest earning
assets and revenue 12,027,909 156,020 5.15%
Other assets 1,285,360
Less: allowance for credit
losses (146,212)
--------
Total $13,167,057
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,010,281 $9,038 0.89%
Savings 716,155 936 0.52%
Other time 3,726,754 25,535 2.72%
Short-term borrowings 1,071,144 544 0.20%
Junior subordinated debt 160,312 2,884 7.14%
Long-term debt 286,285 2,814 3.90%
------- -----
Total interest bearing
liabilities and expense 9,970,931 41,751 1.66%
Demand deposits -
noninterest bearing 1,747,021
Other liabilities 184,006
-------
Total liabilities 11,901,958
Shareholders' equity 1,265,099
---------
Total $13,167,057
=========== --------
Net interest revenue $114,269
========
Net interest margin 3.77%
Net interest rate spread 3.49%
Interest bearing liabilities to
interest earning assets 82.90%
Net interest tax equivalent
adjustment $2,533
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2009
----------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,896,890 $131,313 5.32%
Held-to-maturity securities:
Taxable 1,040,896 12,218 4.71%
Tax-exempt 186,473 3,316 7.13%
Available-for-sale securities:
Taxable 919,217 8,721 3.81%
Tax-exempt 69,960 1,270 7.28%
Short-term investments 21,727 25 0.47%
------ --
Total interest earning
assets and revenue 12,135,163 156,863 5.18%
Other assets 1,270,193
Less: allowance for credit
losses (144,570)
-------
Total $13,260,786
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $3,948,759 $9,738 0.99%
Savings 719,281 928 0.52%
Other time 3,634,336 26,496 2.92%
Short-term borrowings 1,340,244 470 0.14%
Junior subordinated debt 160,312 2,928 7.33%
Long-term debt 286,294 2,813 3.94%
------- -----
Total interest bearing
liabilities and expense 10,089,226 43,373 1.72%
Demand deposits -
noninterest bearing 1,756,861
Other liabilities 163,749
-------
Total liabilities 12,009,836
Shareholders' equity 1,250,950
---------
Total $13,260,786
=========== --------
Net interest revenue $113,490
========
Net interest margin 3.75%
Net interest rate spread 3.46%
Interest bearing liabilities to
interest earning assets 83.14%
Net interest tax equivalent
adjustment $2,550
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
March 31, 2009
------------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,873,692 $131,339 5.39%
Held-to-maturity securities:
Taxable 1,146,772 13,141 4.65%
Tax-exempt 182,051 3,247 7.23%
Available-for-sale securities:
Taxable 891,699 9,038 4.11%
Tax-exempt 73,814 1,358 7.46%
Short-term investments 19,123 71 1.51%
------ --
Total interest earning
assets and revenue 12,187,151 158,194 5.26%
Other assets 1,277,538
Less: allowance for credit
losses (139,811)
--------
Total $13,324,878
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,090,821 $12,248 1.21%
Savings 697,639 936 0.54%
Other time 3,419,180 25,833 3.06%
Short-term borrowings 1,588,229 959 0.24%
Junior subordinated debt 160,312 2,955 7.48%
Long-term debt 286,306 2,811 3.98%
------- -----
Total interest bearing
liabilities and expense 10,242,487 45,742 1.81%
Demand deposits -
noninterest bearing 1,700,792
Other liabilities 142,628
-------
Total liabilities 12,085,907
Shareholders' equity 1,238,971
---------
Total $13,324,878
=========== --------
Net interest revenue $112,452
========
Net interest margin 3.74%
Net interest rate spread 3.45%
Interest bearing liabilities to
interest earning assets 84.04%
Net interest tax equivalent
adjustment $2,576
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
December 31, 2008
----------------------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,773,683 $142,039 5.78%
Held-to-maturity securities:
Taxable 1,193,555 13,734 4.58%
Tax-exempt 180,695 3,159 6.96%
Available-for-sale securities:
Taxable 868,913 8,693 3.98%
Tax-exempt 73,476 1,335 7.23%
Short-term investments 19,338 114 2.34%
------ --- ----
Total interest earning
assets and revenue 12,109,660 169,074 5.55%
Other assets 1,304,386
Less: allowance for credit
losses (134,453)
--------
Total $13,279,593
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $3,811,782 $15,924 1.66%
Savings 684,068 1,080 0.63%
Other time 3,400,071 28,293 3.31%
Short-term borrowings 1,828,010 3,951 0.86%
Junior subordinated debt 160,312 3,161 7.84%
Long-term debt 287,990 2,838 3.92%
------- -----
Total interest bearing
liabilities and expense 10,172,233 55,247 2.16%
Demand deposits -
noninterest bearing 1,702,400
Other liabilities 165,462
-------
Total liabilities 12,040,095
Shareholders' equity 1,239,498
---------
Total $13,279,593
=========== --------
Net interest revenue $113,827
-------------------- ========
Net interest margin 3.74%
Net interest rate spread 3.39%
Interest bearing liabilities to
interest earning assets 84.00%
Net interest tax equivalent
adjustment $2,506
BancorpSouth, Inc.
Reconciliation of Tangible assets and Tangible Shareholders' Equity to
Total Assets and Total Shareholders' Equity
(Dollars in thousands)
(Unaudited)
December 31,
--------------------------
2009 2008
----------- -----------
Tangible Assets (a):
Total assets $13,167,867 $13,480,218
Less: Goodwill 270,097 268,966
Identifiable intangible
assets 23,533 28,165
----------- -----------
Total tangible assets $12,874,237 $13,183,087
Tangible Shareholders' Equity(a):
Total shareholders' equity $1,276,296 $1,240,260
Less: Goodwill 270,097 268,966
Identifiable intangible
assets 23,533 28,165
----------- -----------
Total tangible shareholders'
equity $982,666 $943,129
Tangible shareholders' equity
to tangible assets 7.63% 7.15%
(a) BancorpSouth, Inc. utilizes tangible assets and tangible
shareholders' equity measures when evaluating the performance of the
Company. Tangible shareholders' equity is defined by the Company as
total shareholders' equity less goodwill and identifiable assets.
Tangible assets are defined by the Company as total assets less
goodwill and identifiable assets. The Company believes the ratio of
tangible equity to tangible assets to be an important measure of
financial strength of the Company.
First Call Analyst:
FCMN Contact:
SOURCE: BancorpSouth, Inc.
CONTACT: William L. Prater, Treasurer and Chief Financial Officer,
+1-662-680-2000, or Gary C. Bonds, Senior Vice President and Principal
Accounting Officer, +1-662-680-2332
Web Site: http://www.bancorpsouth.com/