BancorpSouth Announces Third Quarter 2014 Earnings
PR Newswire
TUPELO, Miss.

TUPELO, Miss., Oct. 20, 2014 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and nine months ended September 30, 2014.

Highlights for the third quarter of 2014 included:

  • Net income of $28.8 million or $0.30 per diluted share.
  • Net operating income of $30.8 million or $0.32 per diluted share.
  • Progress toward remediating Bank Secrecy Act ("BSA") and anti-money-laundering ("AML") compliance weaknesses, which resulted in one-time pre-tax costs during the quarter of $3.1 million.
  • Generated net loan growth of $198.9 million, or 8.5 percent annualized, which represents the sixth consecutive quarter of net loan growth.
  • Net interest margin increased to 3.62 percent from 3.59 percent for the second quarter of 2014.
  • Meaningful growth in several non-interest revenue sources, including insurance commission revenue.
  • Non-performing loans and leases ("NPLs") declined $4.7 million, or 6.4 percent, compared to the second quarter of 2014, while non-performing assets ("NPAs") decreased $17.3 million, or 13.4 percent, over the same period.

The Company reported net income of $28.8 million, or $0.30 per diluted share, for the third quarter of 2014 compared with net income of $24.9 million, or $0.26 per diluted share, for the third quarter of 2013 and net income of $30.9 million, or $0.32 per diluted share, for the second quarter of 2014.  Additionally, the Company reported net income of $88.1 million, or $0.92 per diluted share, for the first nine months of 2014 compared to $66.4 million, or $0.70 per diluted share, for the first nine months of 2013.

The Company reported net operating income (excluding merger related and other non-operating expenses) of $30.8 million, or $0.32 per diluted share, for the third quarter of 2014 compared to $27.7 million, or $0.29 per diluted share, for the third quarter of 2013 and $31.5 million, or $0.33 per diluted share, for the second quarter of 2014. 

The Company incurred pre-tax costs totaling $3.1 million during the quarter related to BSA and AML compliance remediation that are considered to be one-time in nature.  This reflects the Company's estimate of total one-time costs necessary to complete its enhancements to these programs.  Annual ongoing costs associated with these programs are expected to total approximately $3 million pre-tax, $0.5 million of which is reflected in the third quarter results.

"Our results for the third quarter reflect continued positive momentum in several core fundamental areas of our company performance," remarked Dan Rollins, Chairman and Chief Executive Officer.  "Our lending team continues to win new business, which resulted in net quarterly loan growth of over eight percent on an annualized basis. We are also pleased with our ability to continue to maintain our net interest margin despite continued pressure on loan yields.  Additionally, we benefitted from continued growth in several of our noninterest revenue line items, including insurance commission revenue.  With that said, the primary focus of our efforts during the quarter has been on remediating the regulatory concerns identified regarding our BSA and AML processes.  We are pleased with the progress that we have made on these efforts and our people continue to work diligently to make the necessary improvements."

Earnings for the quarter reflect no recorded provision for credit losses, which is consistent with no recorded provision for the second quarter of 2014 and a decline from $0.5 million for the third quarter of 2013.  NPLs declined $4.7 million, or 6.4 percent, during the third quarter of 2014 to $68.9 million at September 30, 2014 compared with $73.7 million at June 30, 2014 and declined $75.4 million, or 52.2 percent, from $144.3 million at September 30, 2013.  In addition, total NPAs declined $17.3 million, or 13.4 percent, to $111.6 million at September 30, 2014 compared with $128.9 million at June 30, 2014 and declined $109.6 million, or 49.5 percent, from $221.2 million at September 30, 2013.  Net charge-offs were $3.2 million for the third quarter of 2014 compared with $2.6 million for the second quarter of 2014 and $7.6 million for the third quarter of 2013.

Net Interest Revenue

Net interest revenue was $105.6 million for the third quarter of 2014, an increase of 5.4 percent from $100.2 million for the third quarter of 2013 and an increase of 2.5 percent from $103.1 million for the second quarter of 2014.  The fully taxable equivalent net interest margin was 3.62 percent for the third quarter of 2014 compared to 3.45 percent for the third quarter of 2013 and 3.59 percent for the second quarter of 2014.  Yields on loans and leases declined to 4.36 percent for the third quarter of 2014 compared with 4.55 percent for the third quarter of 2013 and 4.38 percent for the second quarter of 2014, while yields on total interest earning assets were relatively flat at 3.89 percent for the third quarter of 2014 compared with 3.85 percent for the third quarter of 2013 and 3.88 percent for the second quarter of 2014.  The average cost of deposits was 0.28 percent for the third quarter of 2014 compared to 0.36 percent for the third quarter of 2013 and 0.28 percent for the second quarter of 2014.

Asset, Deposit and Loan Activity

Total assets were $13.1 billion at September 30, 2014 compared with $12.9 billion at September 30, 2013.  Loans and leases, net of unearned income, were $9.5 billion at September 30, 2014 compared with $8.8 billion at September 30, 2013. 

Total deposits were $10.7 billion at both September 30, 2014 and September 30, 2013.  The decrease in time deposits of $326.4 million, or 13.6 percent, at September 30, 2014 compared to September 30, 2013 was partially offset by growth in noninterest bearing demand deposits, which increased $213.4 million, or 8.2 percent, over the same period.  Additionally, savings deposits increased $91.6 million, or 7.5 percent, while interest bearing demand deposits remained relatively flat, over the same period.  As of September 30, 2014, $804.3 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.89 percent. 

Provision for Credit Losses and Allowance for Credit Losses

For the third quarter of 2014, no provision for credit losses was recorded, compared with $0.5 million for the third quarter of 2013 and no recorded provision for the second quarter of 2014.  Net charge-offs for the third quarter of 2014 were $3.2 million, compared with $7.6 million for the third quarter of 2013 and $2.6 million for the second quarter of 2014.  Recoveries of previously charged-off loans were $3.3 million for the third quarter of 2014, compared with $4.3 million for the third quarter of 2013 and $3.0 million for the second quarter of 2014.  Annualized net charge-offs were 0.13 percent of average loans and leases for the third quarter of 2014, compared with 0.35 percent for the third quarter of 2013 and 0.11 percent for the second quarter of 2014. 

NPLs were $68.9 million, or 0.72 percent of net loans and leases, at September 30, 2014, compared with $144.3 million, or 1.65 percent of net loans and leases, at September 30, 2013, and $73.7 million, or 0.79 percent of net loans and leases, at June 30, 2014.  The allowance for credit losses was $144.0 million, or 1.51 percent of net loans and leases, at September 30, 2014 compared with $154.0 million, or 1.76 percent of net loans and leases, at September 30, 2013 and $147.1 million, or 1.58 percent of net loans and leases, at June 30, 2014. 

NPLs at September 30, 2014 consisted primarily of $54.6 million of nonaccrual loans, compared with $64.5 million of nonaccrual loans at June 30, 2014.  Payments received on nonaccrual loans during the third quarter of 2014 totaled $11.9 million, compared with payments received on such loans of $12.9 million during the second quarter of 2014.  NPLs at September 30, 2014 also included $1.9 million of loans 90 days or more past due and still accruing, compared with $2.4 million of such loans at June 30, 2014, and included restructured loans still accruing of $12.4 million at September 30, 2014, compared with $6.7 million of such loans at June 30, 2014.  Early stage past due loans, representing loans 30-89 days past due, totaled $24.4 million at September 30, 2014 compared to $28.8 million at June 30, 2014.  

Included in nonaccrual loans at September 30, 2014 were $31.7 million of loans, or 58.1 percent of total nonaccrual loans, that were paying as agreed, compared with $36.6 million, or 56.7 percent of total nonaccrual loans, that were paying as agreed at June 30, 2014.  These loans were generally placed on nonaccrual status because the collateral values were less than the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or would be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values.  Such loans are generally deemed to be impaired, with a specific reserve established for the difference in the balance owed and the disposition value of the collateral.

Other real estate owned ("OREO") decreased $12.6 million to $42.7 million during the third quarter of 2014 from $55.3 million at June 30, 2014.  This net decrease reflected $3.5 million of OREO added through foreclosure, offset by sales of OREO of $14.4 million.  Write-downs in the value of existing properties were $1.6 million for the third quarter of 2014 compared to $2.2 million for the second quarter of 2014.  Sales of OREO during the third quarter of 2014 resulted in a net loss of $3.3 million compared to a net loss of $1.1 million for the second quarter of 2014.  At September 30, 2014, OREO was carried at 39.8 percent of the aggregate loan balances at the time of foreclosure, compared with 44.2 percent at June 30, 2014.

Noninterest Revenue

Noninterest revenue was $69.3 million for the third quarter of 2014, compared with $62.5 million for the third quarter of 2013 and $69.8 million for the second quarter of 2014.  These results included a positive mortgage servicing rights ("MSR") valuation adjustment of $0.6 million for the third quarter of 2014 compared with a negative MSR valuation adjustment of $0.2 million for the third quarter of 2013 and a negative MSR valuation adjustment of $2.1 million for the second quarter of 2014. 

Excluding the MSR valuation adjustments, net mortgage lending revenue was $6.3 million for the third quarter of 2014, compared with $5.4 million for the third quarter of 2013 and $11.2 million for the second quarter of 2014.  Mortgage origination volume for the third quarter of 2014 was $305.7 million, compared with $341.9 million for the third quarter of 2013 and $291.0 million for the second quarter of 2014.

Credit and debit card fee revenue was $9.0 million for the third quarter of 2014, compared with $8.8 million for the third quarter of 2013 and $8.6 million for the second quarter of 2014.  Deposit service charge revenue was $13.1 million for the third quarter of 2014, compared with $13.7 million for the third quarter of 2013 and $12.4 million for the second quarter of 2014.  Insurance commission revenue was $29.2 million for the third quarter of 2014, compared with $23.8 million for the third quarter of 2013 and $28.6 million for the second quarter of 2014. 

Noninterest Expense

Noninterest expense for the third quarter of 2014 was $133.7 million, compared with $129.4 million for the third quarter of 2013 and $128.0 million for the second quarter of 2014.  Salaries and employee benefits expense was $77.5 million for the third quarter of 2014 compared to $73.5 million for the third quarter of 2013 and $74.7 million for the second quarter of 2014.  Foreclosed property expense was $5.7 million for the third quarter of 2014 compared with $3.3 million for the third quarter of 2013 and $4.2 million for the second quarter of 2014.  Deposit insurance assessments were $2.1 million for the third quarter of 2014 compared to $3.3 million for the third quarter of 2013 and $2.0 million for the second quarter of 2014.  Noninterest expense for the third quarter of 2014 includes pre-tax costs totaling $3.1 million  related to BSA and AML compliance remediation that are considered to be one-time in nature.  This reflects the Company's estimate of total one-time costs necessary to complete its enhancements to its BSA and AML compliance programs.  Noninterest expense for the third quarter of 2013 included pre-tax charges of $2.9 million related to the write-off of unamortized issuance costs associated with the redemption of trust preferred securities and $2.8 million to increase the litigation accrual related to probable losses associated with various legal proceedings.

Capital Management

BancorpSouth is a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 13.18 percent at September 30, 2014 and total risk based capital of 14.43 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for "well capitalized" classification.  The Company's equity capitalization consists of 100 percent common stock.  BancorpSouth's ratio of shareholders' equity to assets was 12.32 percent at September 30, 2014, compared with 11.46 percent at September 30, 2013 and 12.24 percent at June 30, 2014.  The ratio of tangible shareholders' equity to tangible assets was 10.14 percent at September 30, 2014, compared with 9.43 percent at September 30, 2013 and 10.03 percent at June 30, 2014.

Transaction Closings and Announcements

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

On January 8, 2014, the Company announced the signing of a definitive merger agreement with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as "OIB"), headquartered in Monroe, Louisiana, pursuant to which Ouachita Bancshares Corp. will be merged with and into the Company.  OIB operates 12 full-service banking offices along the I-20 corridor and has loan production offices in Madison, Mississippi and Natchitoches, Louisiana.  As of September 30, 2014, OIB, on a consolidated basis, reported total assets of $640.2 million, total loans of $483.0 million and total deposits of $537.6 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 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions.  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 September 30, 2014, Central Community Corporation, on a consolidated basis, reported total assets of $1.4 billion, total loans of $570.7 million and total deposits of $1.1 billion.  Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company's common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation's capital stock, subject to certain conditions and potential adjustments.  The 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 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions.  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 and the Current Report on Form 8-K that was previously filed with the SEC on September 4, 2014.

On April 9, 2014, BancorpSouth Insurance Services, Inc. acquired 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, "Our teammates are working daily to enhance core operating performance.  We are seeing the benefits of our sales efforts, as we continue to report meaningful quarter to quarter loan growth as well as growth in several of our noninterest lines of business.  We also are working on projects daily that will improve efficiency in quarters and years to come.  We are hopeful that our efforts in working through the necessary improvements to our compliance programs will result in a timely resolution to the BSA and AML concerns and ultimately allow us to close our two pending bank transactions." 

Conference Call

BancorpSouth will conduct a conference call to discuss its third quarter 2014 results on October 21, 2014, at 10:00 a.m. (Central Time).  Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com.  A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.

About BancorpSouth, Inc.

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.1 billion in assets.  BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 300 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 satisfy the requirements of the consent order issued by the FDIC and the Mississippi Department of Banking and Consumer Finance ("Mississippi Banking Department"), the Company's undertaking and performance of the necessary actions to remediate and fully resolve those concerns regarding the Company's procedures, systems and processes related to certain of its compliance programs, including its Bank Secrecy Act and anti-money-laundering programs, that have been identified by its federal bank regulators, the findings and results of the investigation by the Consumer Financial Protection Bureau (the "CFPB") 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 ability of the Company to resolve to the satisfaction of its federal bank regulators those identified concerns regarding the Company's procedures, systems and processes related to certain of its compliance programs, including its Bank Secrecy Act and anti-money laundering programs, the Company's ability to comply with the consent order issued by the FDIC and the Mississippi Banking Department, the findings and results of the CFPB in its 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


9/30/2014

6/30/2014

3/31/2014

12/31/2013

9/30/2013

Earnings Summary:






Interest revenue

$            113,922

$             111,499

$            110,599

$            112,510

$            111,961

Interest expense

8,309

8,418

9,076

10,093

11,720

Net interest revenue

105,613

103,081

101,523

102,417

100,241

Provision for credit losses

-

-

-

-

500

Net interest revenue, after provision






   for credit losses

105,613

103,081

101,523

102,417

99,741

Noninterest revenue

69,278

69,838

66,517

65,125

62,514

Noninterest expense

133,699

127,954

126,707

127,830

129,397

Income before income taxes

41,192

44,965

41,333

39,712

32,858

Income tax expense

12,414

14,097

12,889

12,014

8,001

Net income

$              28,778

$               30,868

$              28,444

$              27,698

$              24,857







Balance Sheet - Period End Balances






Total assets

$       13,071,557

$        12,985,887

$       13,143,555

$       13,029,733

$       12,916,153

Total earning assets

11,929,416

11,794,445

11,948,897

11,814,060

11,765,785

Total securities

2,211,462

2,332,192

2,426,758

2,466,989

2,554,156

Loans and leases, net of unearned income

9,510,542

9,311,661

9,068,376

8,958,015

8,773,115

Allowance for credit losses

143,950

147,132

149,704

153,236

153,974

Total deposits

10,701,537

10,670,414

10,811,790

10,773,836

10,717,946

Long-term debt

81,742

83,835

85,835

81,714

83,500

Total shareholders' equity

1,610,543

1,588,850

1,554,676

1,513,130

1,480,611







Balance Sheet - Average Balances






Total assets

$       12,987,103

$        12,933,879

$       13,087,128

$       12,955,127

$       12,928,505

Total earning assets

11,892,493

11,825,994

11,958,836

11,869,072

11,846,790

Total securities

2,272,114

2,394,045

2,452,178

2,511,888

2,598,786

Loans and leases, net of unearned income

9,393,709

9,232,743

9,022,155

8,830,917

8,682,966

Total deposits

10,662,841

10,650,077

10,825,308

10,739,352

10,745,945

Long-term debt

81,742

83,967

87,767

81,714

62,848

Total shareholders' equity

1,600,721

1,574,588

1,537,897

1,501,928

1,474,047







Nonperforming Assets:






Non-accrual loans and leases

$              54,612

$               64,533

$              77,531

$              92,173

$            121,353

Loans and leases 90+ days past due, still accruing

1,925

2,406

1,949

1,226

1,479

Restructured loans and leases, still accruing

12,398

6,712

13,776

27,007

21,502

Non-performing loans (NPLs)

68,935

73,651

93,256

120,406

144,334

Other real estate owned

42,691

55,253

63,595

69,338

76,853

Non-performing assets (NPAs)

$            111,626

$             128,904

$            156,851

$            189,744

$            221,187







Financial Ratios and Other Data:






Return on average assets

0.88%

0.96%

0.88%

0.85%

0.76%

Return on average shareholders' equity

7.13%

7.86%

7.50%

7.32%

6.69%

Return on tangible equity

8.83%

9.74%

9.28%

9.16%

8.29%

Pre-tax pre-provision return on average assets

1.26%

1.39%

1.28%

1.22%

1.02%

Non-interest income to average assets

2.12%

2.17%

2.06%

1.99%

1.92%

Non-interest expense to average assets

4.08%

3.97%

3.93%

3.91%

3.97%

Net interest margin-fully taxable equivalent

3.62%

3.59%

3.54%

3.52%

3.45%

Net interest rate spread

3.50%

3.48%

3.43%

3.39%

3.32%

Efficiency ratio (tax equivalent)

75.19%

72.76%

74.16%

75.00%

78.11%

Loan/deposit ratio

88.87%

87.27%

83.87%

83.15%

81.85%

Price to earnings mult (avg)

16.64

21.00

23.33

25.68

22.66

Market value to book value

120.13%

148.53%

154.13%

160.04%

128.22%

Market value to book value (avg)

129.54%

143.72%

150.43%

143.60%

126.22%

Market value to tangible book value

149.58%

185.73%

192.80%

201.69%

159.50%

Market value to tangible book value (avg)

161.30%

179.75%

188.17%

180.98%

157.02%

Headcount FTE

3,938

3,981

3,981

4,005

3,994













Credit Quality Ratios:






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

0.13%

0.11%

0.16%

0.03%

0.35%

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

0.00%

0.00%

0.00%

0.00%

0.02%

Allowance for credit losses to net loans and leases

1.51%

1.58%

1.65%

1.71%

1.76%

Allowance for credit losses to non-performing loans and leases

208.82%

199.77%

160.53%

127.27%

106.68%

Allowance for credit losses to non-performing assets

128.96%

114.14%

95.44%

80.76%

69.61%

Non-performing loans and leases to net loans and leases

0.72%

0.79%

1.03%

1.34%

1.65%

Non-performing assets to net loans and leases

1.17%

1.38%

1.73%

2.12%

2.52%







Equity Ratios:






Total shareholders' equity to total assets

12.32%

12.24%

11.83%

11.61%

11.46%

Tangible shareholders' equity to tangible assets

10.14%

10.03%

9.69%

9.44%

9.43%













Capital Adequacy:






Tier 1 capital

13.18%

13.09%

13.18%

12.99%

13.25%

Total capital

14.43%

14.35%

14.44%

14.25%

14.50%

Tier 1 leverage capital

10.47%

10.33%

10.04%

9.93%

9.93%

   Estimated for current quarter












Common Share Data:






Basic earnings per share

$                  0.30

$                   0.32

$                  0.30

$                  0.29

$                  0.26

Diluted earnings per share

0.30

0.32

0.30

0.29

0.26

Cash dividends per share

0.08

0.05

0.05

0.05

0.05

Book value per share

16.77

16.54

16.19

15.89

15.55

Tangible book value per share

13.46

13.23

12.95

12.60

12.50

Market value per share (last)

20.14

24.57

24.96

25.42

19.94

Market value per share (high)

25.43

25.55

26.24

25.54

20.77

Market value per share (low)

20.11

22.16

22.46

19.64

17.76

Market value per share (avg)

21.72

23.78

24.36

22.81

19.63

Dividend payout ratio

25.03%

15.56%

16.80%

17.19%

19.15%

Total shares outstanding

96,065,021

96,046,057

96,004,679

95,231,691

95,211,602

Average shares outstanding - basic

96,052,260

96,034,475

95,629,890

95,217,203

95,201,238

Average shares outstanding - diluted

96,373,950

96,373,121

95,952,611

95,644,383

95,519,318













Yield/Rate:






(Taxable equivalent basis)






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

4.36%

4.38%

4.48%

4.52%

4.55%

Available-for-sale securities:






  Taxable

1.42%

1.45%

1.50%

1.51%

1.50%

  Tax-exempt

5.37%

5.44%

5.58%

5.52%

5.61%

Short-term investments

0.22%

0.24%

0.25%

0.25%

0.25%

  Total interest earning assets and revenue

3.89%

3.88%

3.85%

3.86%

3.85%

Deposits:

0.28%

0.28%

0.31%

0.34%

0.36%

  Demand - interest bearing

0.17%

0.17%

0.17%

0.18%

0.18%

  Savings

0.12%

0.12%

0.13%

0.13%

0.12%

  Other time

0.96%

0.97%

1.06%

1.13%

1.18%

Short-term borrowings

0.10%

0.09%

0.07%

0.07%

0.07%

Total int bearing dep & s/t borrowings

0.36%

0.37%

0.39%

0.43%

0.45%

Junior subordinated debt

2.81%

2.81%

2.86%

2.96%

6.57%

Long-term debt

2.85%

2.84%

2.91%

2.94%

3.19%

  Total interest bearing liabilities and expense

0.39%

0.40%

0.42%

0.46%

0.53%

Interest bearing liabilities to interest earning assets

71.07%

71.98%

73.51%

72.91%

74.15%

Net interest tax equivalent adjustment

$                2,810

$                 2,860

$                2,823

$                2,893

$                2,905

 







BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)








Sep-14

Jun-14

Mar-14

Dec-13

Sep-13


(Dollars in thousands)

Assets






Cash and due from banks

$                169,226

$                201,196

$                199,214

$                208,961

$                199,464

Interest bearing deposits with other banks

70,408

44,949

390,896

319,462

361,401

Available-for-sale securities, at fair value

2,211,462

2,332,192

2,426,758

2,466,989

2,554,156

Loans and leases

9,546,250

9,347,429

9,103,850

8,993,888

8,806,392

  Less:  Unearned income

35,708

35,768

35,474

35,873

33,277

             Allowance for credit losses

143,950

147,132

149,704

153,236

153,974

Net loans and leases

9,366,592

9,164,529

8,918,672

8,804,779

8,619,141

Loans held for sale

137,005

105,643

62,867

69,593

77,114

Premises and equipment, net

307,497

310,515

314,367

315,260

314,441

Accrued interest receivable

42,311

40,697

42,666

42,150

43,034

Goodwill

291,498

291,498

286,800

286,800

275,173

Other identifiable intangibles

25,619

26,745

25,021

26,079

15,179

Bank owned life insurance

243,827

241,962

240,077

239,434

236,969

Other real estate owned

42,691

55,253

63,595

69,338

76,853

Other assets

163,421

170,708

172,622

180,888

143,228

Total Assets

$           13,071,557

$           12,985,887

$           13,143,555

$           13,029,733

$           12,916,153

Liabilities






Deposits:






  Demand:  Noninterest bearing

$             2,811,156

$             2,718,242

$             2,725,042

$             2,644,592

$             2,597,762

                  Interest bearing

4,498,275

4,511,760

4,583,481

4,582,450

4,493,359

  Savings

1,311,874

1,299,203

1,297,344

1,234,130

1,220,227

  Other time

2,080,232

2,141,209

2,205,923

2,312,664

2,406,598

Total deposits

10,701,537

10,670,414

10,811,790

10,773,836

10,717,946

Federal funds purchased and






    securities sold under agreement






    to repurchase

431,428

394,446

456,303

421,028

418,623

Short-term Federal Home Loan Bank borrowings






   and other short-term borrowing

2,000

2,000

-

-

-

Accrued interest payable

3,894

3,926

4,050

4,836

5,156

Junior subordinated debt securities

23,198

23,198

23,198

31,446

31,446

Long-term debt

81,742

83,835

85,835

81,714

83,500

Other liabilities

217,215

219,218

207,703

203,743

178,871

Total Liabilities

11,461,014

11,397,037

11,588,879

11,516,603

11,435,542

Shareholders' Equity






Common stock

240,165

240,118

240,012

238,079

238,029

Capital surplus

322,488

321,952

320,969

312,900

312,798

Accumulated other comprehensive loss

(15,513)

(15,040)

(22,060)

(29,959)

(39,389)

Retained earnings

1,063,403

1,041,820

1,015,755

992,110

969,173

Total Shareholders' Equity

1,610,543

1,588,850

1,554,676

1,513,130

1,480,611

Total Liabilities & Shareholders' Equity

$           13,071,557

$           12,985,887

$           13,143,555

$           13,029,733

$           12,916,153

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)








Sep-14

Jun-14

Mar-14

Dec-13

Sep-13


(Dollars in thousands)

Assets






Cash and due from banks

$                155,876

$                157,813

$                168,056

$                163,948

$                163,322

Interest bearing deposits with other banks

120,707

145,530

449,207

471,695

487,075

Available-for-sale securities, at fair value

2,272,114

2,394,045

2,452,178

2,511,888

2,598,786

Loans and leases

9,430,043

9,269,469

9,058,081

8,864,983

8,715,894

  Less:  Unearned income

36,334

36,726

35,926

34,066

32,928

             Allowance for credit losses

146,592

149,676

153,615

153,443

160,609

Net loans and leases

9,247,117

9,083,067

8,868,540

8,677,474

8,522,357

Loans held for sale

105,964

53,676

35,297

54,572

77,964

Premises and equipment, net

309,373

313,012

315,804

315,174

312,724

Accrued interest receivable

38,758

38,291

39,336

39,665

39,354

Goodwill

291,498

293,082

286,800

279,091

275,173

Other identifiable intangibles

26,031

25,271

25,420

18,658

15,446

Bank owned life insurance

242,718

240,736

239,969

237,657

235,708

Other real estate owned

49,123

60,822

69,086

77,211

86,545

Other assets

127,824

128,534

137,435

108,094

114,051

Total Assets

$           12,987,103

$           12,933,879

$           13,087,128

$           12,955,127

$           12,928,505

Liabilities






Deposits:






  Demand:  Noninterest bearing

$             2,766,626

$             2,683,939

$             2,647,376

$             2,667,667

$             2,551,812

                  Interest bearing

4,480,008

4,492,495

4,657,785

4,484,269

4,530,219

  Savings

1,308,184

1,298,829

1,260,838

1,224,588

1,216,599

  Other time

2,108,023

2,174,814

2,259,309

2,362,828

2,447,315

Total deposits

10,662,841

10,650,077

10,825,308

10,739,352

10,745,945

Federal funds purchased and






    securities sold under agreement






    to repurchase

444,017

435,505

458,436

469,245

441,807

Short-term Federal Home Loan Bank borrowings






   and other short-term borrowing

6,489

3,621

-

-

-

Accrued interest payable

3,940

3,926

4,400

5,051

5,391

Junior subordinated debt securities

23,198

23,198

23,748

31,446

86,074

Long-term debt

81,742

83,967

87,767

81,714

62,848

Other liabilities

164,155

158,997

149,572

126,391

112,393

Total Liabilities

11,386,382

11,359,291

11,549,231

11,453,199

11,454,458

Shareholders' Equity






Common stock

240,123

240,071

238,853

238,038

237,997

Capital surplus

322,219

321,628

314,117

312,835

312,349

Accumulated other comprehensive loss

(14,827)

(16,663)

(23,644)

(32,267)

(43,695)

Retained earnings

1,053,206

1,029,552

1,008,571

983,322

967,396

Total Shareholders' Equity

1,600,721

1,574,588

1,537,897

1,501,928

1,474,047

Total Liabilities & Shareholders' Equity

$           12,987,103

$           12,933,879

$           13,087,128

$           12,955,127

$           12,928,505

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)
















Quarter Ended




Year Ended


Sep-14


Jun-14


Mar-14


Dec-13


Sep-13


Sep-14


Sep-13

INTEREST REVENUE:














Loans and leases

$  102,681


$   99,962


$     98,744


$    99,989


$   98,836


$ 301,387


$ 296,452

Deposits with other banks

68


87


276


299


310


431


1,395

Available-for-sale securities:














    Taxable

6,646


7,133


7,547


7,963


8,218


21,326


25,323

    Tax-exempt

3,607


3,669


3,715


3,810


3,866


10,991


11,737

Loans held for sale

920


648


317


449


731


1,885


2,090

        Total interest revenue

113,922


111,499


110,599


112,510


111,961


336,020


336,997















INTEREST EXPENSE:














Interest bearing demand

1,956


1,905


1,920


2,036


2,061


5,781


7,609

Savings

410


402


391


387


383


1,203


1,318

Other time

5,083


5,249


5,890


6,746


7,271


16,222


22,983

Federal funds purchased and securities sold














   under agreement to repurchase

84


80


78


84


80


242


213

Long-term debt

612


619


629


605


501


1,860


1,204

Junior subordinated debt

164


162


168


235


1,424


494


7,141

Other

-


1


-


-


-


1


(3)

        Total interest expense

8,309


8,418


9,076


10,093


11,720


25,803


40,465















        Net interest revenue

105,613


103,081


101,523


102,417


100,241


310,217


296,532

  Provision for credit losses

-


-


-


-


500


-


7,500

        Net interest revenue, after provision for














          credit losses

105,613


103,081


101,523


102,417


99,741


310,217


289,032















NONINTEREST REVENUE:














Mortgage lending

6,938


9,089


3,394


9,605


5,134


19,421


35,372

Credit card, debit card and merchant fees

8,972


8,567


7,843


8,324


8,834


25,382


24,681

Deposit service charges

13,111


12,437


12,536


13,570


13,679


38,084


39,335

Security gains (losses), net

18


5


(4)


29


(5)


19


17

Insurance commissions

29,246


28,621


31,599


21,397


23,800


89,466


76,303

Wealth Management

5,961


5,828


5,916


5,320


6,057


17,705


17,646

Other

5,032


5,291


5,233


6,880


5,015


15,556


16,587

        Total noninterest revenue

69,278


69,838


66,517


65,125


62,514


205,633


209,941















NONINTEREST EXPENSE:














Salaries and employee benefits

77,453


74,741


78,883


75,466


73,532


231,077


242,080

Occupancy, net of rental income

10,313


10,245


10,287


9,935


10,360


30,845


31,174

Equipment

4,205


4,169


4,499


4,298


4,555


12,873


14,088

Deposit insurance assessments

2,125


2,035


1,600


2,687


3,325


5,760


9,068

Write-off and amortization of bond issue cost

12


12


12


12


2,907


36


2,983

Other

39,591


36,752


31,426


35,432


34,718


107,769


107,626

        Total noninterest expenses

133,699


127,954


126,707


127,830


129,397


388,360


407,019

        Income before income taxes

41,192


44,965


41,333


39,712


32,858


127,490


91,954

Income tax expense

12,414


14,097


12,889


12,014


8,001


39,400


25,537

        Net income

$    28,778


$   30,868


$     28,444


$    27,698


$   24,857


$  88,090


$  66,417















Net income per share: Basic

$       0.30


$       0.32


$        0.30


$       0.29


$       0.26


$      0.92


$      0.70

                                  Diluted

$       0.30


$       0.32


$        0.30


$       0.29


$       0.26


$      0.92


$      0.70

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Sep-14


Jun-14


Mar-14


Dec-13


Sep-13

LOAN AND LEASE PORTFOLIO:










Commercial and industrial

$  1,714,012


$ 1,699,803


$ 1,581,251


$ 1,529,249


$ 1,503,809

Real estate










   Consumer mortgages

2,191,265


2,071,503


2,047,001


1,976,073


1,931,171

   Home equity

518,263


506,988


498,283


494,339


490,361

   Agricultural

242,023


238,003


229,602


234,576


234,547

   Commercial and industrial-owner occupied

1,508,679


1,505,679


1,488,380


1,473,320


1,422,077

   Construction, acquisition and development

819,636


772,162


748,027


741,458


723,609

   Commercial real estate

1,916,577


1,901,759


1,847,983


1,846,039


1,795,352

Credit cards

109,464


109,186


105,988


111,328


105,112

All other

490,623


506,578


521,861


551,633


567,077

     Total loans

$  9,510,542


$ 9,311,661


$ 9,068,376


$ 8,958,015


$ 8,773,115











ALLOWANCE FOR CREDIT LOSSES:










Balance, beginning of period

$     147,132


$   149,704


$    153,236


$   153,974


$   161,047











Loans and leases charged off:










Commercial and industrial

(306)


(860)


(201)


(837)


(889)

Real estate










   Consumer mortgages

(1,510)


(1,682)


(1,945)


(1,435)


(2,996)

   Home equity

(510)


(438)


(318)


(287)


(379)

   Agricultural

(47)


(18)


(696)


(238)


(169)

   Commercial and industrial-owner occupied

(1,229)


(936)


(1,206)


(1,041)


(1,684)

   Construction, acquisition and development

(1,458)


(41)


(1,666)


(1,784)


(1,727)

   Commercial real estate

(70)


(361)


(901)


(1,039)


(2,441)

Credit cards

(612)


(608)


(559)


(559)


(750)

All other

(743)


(671)


(583)


(1,108)


(837)

     Total loans charged off

(6,485)


(5,615)


(8,075)


(8,328)


(11,872)











Recoveries:










Commercial and industrial

565


359


1,076


1,361


820

Real estate










   Consumer mortgages

952


956


538


1,735


1,516

   Home equity

157


182


184


97


66

   Agricultural

45


26


9


34


48

   Commercial and industrial-owner occupied

460


78


358


734


297

   Construction, acquisition and development

392


808


1,637


2,483


953

   Commercial real estate

286


226


323


784


221

Credit cards

116


135


131


133


164

All other

330


273


287


229


214

     Total recoveries

3,303


3,043


4,543


7,590


4,299











Net charge-offs

(3,182)


(2,572)


(3,532)


(738)


(7,573)











Provision charged to operating expense

-


-


-


-


500

Balance, end of period

$     143,950


$   147,132


$    149,704


$   153,236


$   153,974











Average loans for period

$  9,393,709


$ 9,232,743


$ 9,022,155


$ 8,830,917


$ 8,682,966











Ratio:










Net charge-offs to average loans (annualized)

0.13%


0.11%


0.16%


0.03%


0.35%

 

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Sep-14


Jun-14


Mar-14


Dec-13


Sep-13

NON-PERFORMING ASSETS











NON-PERFORMING LOANS AND LEASES:











  Nonaccrual Loans and Leases











    Commercial and industrial

$      2,786


$         2,917


$         3,023


$      3,079


$         5,498


    Real estate











       Consumer mortgages

23,408


24,355


24,353


25,645


30,569


       Home equity

2,073


2,116


2,740


3,695


3,287


       Agricultural

638


595


651


1,260


4,086


       Commercial and industrial-owner occupied

7,495


11,094


14,122


18,568


18,138


       Construction, acquisition and development

6,070


9,202


9,968


17,567


26,127


       Commercial real estate

11,102


13,406


21,496


20,972


31,468


    Credit cards

168


132


168


119


196


    All other

872


716


1,010


1,268


1,984


         Total nonaccrual loans and leases

$    54,612


$       64,533


$       77,531


$    92,173


$      121,353













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











    Commercial and industrial

$          60


$            302


$            287


$          27


$             15


    Real estate











       Consumer mortgages

1,590


1,607


1,307


888


1,178


       Home equity

20


116


12


-


-


       Agricultural

-


100


-


-


-


       Commercial and industrial-owner occupied

-


-


-


-


-


       Construction, acquisition and development

-


-


-


-


-


       Commercial real estate

-


-


-


311


-


    Credit cards

255


281


297


-


263


    All other

-


-


46


-


23


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

1,925


2,406


1,949


1,226


1,479













  Restructured Loans and Leases, Still Accruing

12,398


6,712


13,776


27,007


21,502


     Total non-performing loans and leases

68,935


73,651


93,256


120,406


144,334













OTHER REAL ESTATE OWNED:

42,691


55,253


63,595


69,338


76,853













Total Non-performing Assets

$  111,626


$      128,904


$      156,851


$  189,744


$      221,187













Additions to Nonaccrual Loans and Leases During the Quarter

$    16,707


$       13,748


$       22,479


$    18,556


$       21,182













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











    Commercial and industrial

$      3,753


$         3,605


$         2,616


$      2,817


$         1,909


    Real estate











       Consumer mortgages

13,013


11,448


12,236


14,150


10,914


       Home equity

1,315


960


1,587


1,828


1,278


       Agricultural

190


1,122


302


495


761


       Commercial and industrial-owner occupied

2,364


6,340


3,248


4,081


1,995


       Construction, acquisition and development

1,036


1,616


2,848


1,993


3,920


       Commercial real estate

926


1,658


3,953


5,574


5,818


    Credit cards

602


556


592


655


688


    All other

1,196


1,490


963


2,189


1,634


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

$    24,395


$       28,795


$       28,345


$    33,782


$       28,917













Credit Quality Ratios:











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

0.00%


0.00%


0.00%


0.00%


0.02%


Allowance for credit losses to net loans and leases

1.51%


1.58%


1.65%


1.71%


1.76%


Allowance for credit losses to non-performing loans and leases

208.82%


199.77%


160.53%


127.27%


106.68%


Allowance for credit losses to non-performing assets

128.96%


114.14%


95.44%


80.76%


69.61%


Non-performing loans and leases to net loans and leases

0.72%


0.79%


1.03%


1.34%


1.65%


Non-performing assets to net loans and leases

1.17%


1.38%


1.73%


2.12%


2.52%


 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Sep-14


Jun-14


Mar-14


Dec-13


Sep-13

REAL ESTATE CONSTRUCTION, ACQUISITION 










   AND DEVELOPMENT ("CAD") PORTFOLIO:










  Outstanding Balance










     Multi-family construction

$     24,076


$       15,874


$       11,339


$       7,702


$         7,974

     One-to-four family construction

220,066


226,252


221,790


224,286


203,988

     Recreation and all other loans

33,015


35,364


36,897


36,868


41,762

     Commercial construction

245,734


192,605


177,264


150,847


139,041

     Commercial acquisition and development

121,439


122,380


122,051


128,157


136,206

     Residential acquisition and development

175,306


179,687


178,686


193,598


194,638

         Total outstanding balance

$   819,636


$      772,162


$      748,027


$   741,458


$      723,609











  Nonaccrual CAD Loans










     Multi-family construction

$             -


$                -


$                -


$             -


$                -

     One-to-four family construction

1,239


2,603


2,824


2,937


3,249

     Recreation and all other loans

1,060


981


919


728


782

     Commercial construction

-


-


-


865


1,686

     Commercial acquisition and development

2,033


1,835


2,224


6,890


11,150

     Residential acquisition and development

3,086


3,783


4,001


6,147


9,260

         Total nonaccrual CAD loans

$       7,418


$         9,202


$         9,968


$     17,567


$       26,127











  CAD Loans 90+ Days Past Due, Still Accruing:










     Multi-family construction

$             -


$                -


$                -


$             -


$                -

     One-to-four family construction

-


-


-


-


-

     Recreation and all other loans

-


-


-


-


-

     Commercial construction

-


-


-


-


-

     Commercial acquisition and development

-


-


-


-


-

     Residential acquisition and development

-


-


-


-


-

         Total CAD loans 90+ days past due, still accruing

$             -


$                -


$                -


$             -


$                -











  Restructured CAD Loans, Still Accruing










     Multi-family construction

$             -


$                -


$                -


$             -


$                -

     One-to-four family construction

-


-


-


1,274


1,028

     Recreation and all other loans

10


11


13


13


15

     Commercial construction

-


-


-


346


348

     Commercial acquisition and development

391


395


402


1,990


2,010

     Residential acquisition and development

947


700


1,192


3,111


3,162

         Total restructured CAD loans, still accruing

$       1,348


$         1,106


$         1,607


$       6,734


$         6,563











        Total Non-performing CAD loans

$       8,766


$       10,308


$       11,575


$     24,301


$       32,690











  CAD NPL as a % of Outstanding CAD Balance










     Multi-family construction

-


-


-


-


-

     One-to-four family construction

0.6%


1.2%


1.3%


1.9%


2.1%

     Recreation and all other loans

3.2%


2.8%


2.5%


2.0%


1.9%

     Commercial construction

0.0%


0.0%


0.0%


0.8%


1.5%

     Commercial acquisition and development

2.0%


1.8%


2.2%


6.9%


9.7%

     Residential acquisition and development

2.3%


2.5%


2.9%


4.8%


6.4%

         Total CAD NPL as a % of outstanding CAD balance

1.1%


1.3%


1.5%


3.3%


4.5%

 

 

 

BancorpSouth, Inc.





Selected Loan Data





(Dollars in thousands)





(Unaudited)




















September 30, 2014




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$ 1,685,887


$            994


$       25,536


$        341


$                -


$    1,254


$ 1,714,012

Real estate














   Consumer mortgages

2,098,275


-


88,742


-


-


4,248


2,191,265

   Home equity

507,884


-


9,752


-


-


627


518,263

   Agricultural

227,546


500


13,711


-


-


266


242,023

   Commercial and industrial-owner occupied

1,443,345


3,685


57,572


142


-


3,935


1,508,679

   Construction, acquisition and development

776,197


255


39,310


342


-


3,532


819,636

   Commercial real estate

1,850,212


-


57,393


189


-


8,783


1,916,577

Credit cards

109,464


-


-


-


-


-


109,464

All other

471,065


-


19,382


-


-


176


490,623

     Total loans

$ 9,169,875


$         5,434


$      311,398


$      1,014


$                -


$  22,821


$ 9,510,542






























June 30, 2014




Special












Pass


Mention


Substandard


Doubtful


Loss


Impaired


Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:














Commercial and industrial

$ 1,650,893


$       16,307


$       31,157


$            -


$                -


$    1,446


$ 1,699,803

Real estate














   Consumer mortgages

1,983,165


-


82,769


-


-


5,569


2,071,503

   Home equity

496,451


-


9,903


-


-


634


506,988

   Agricultural

224,337


509


12,724


-


-


433


238,003

   Commercial and industrial-owner occupied

1,435,618


3,782


61,508


342


-


4,429


1,505,679

   Construction, acquisition and development

721,572


255


43,238


576


-


6,521


772,162

   Commercial real estate

1,814,209


-


76,286


350


-


10,914


1,901,759

Credit cards

109,186


-


-


-


-


-


109,186

All other

495,292


-


11,104


-


-


182


506,578

     Total loans

$ 8,930,723


$       20,853


$      328,689


$      1,268


$                -


$  30,128


$ 9,311,661

 

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)




















September 30, 2014


Alabama








Greater






Corporate




and Florida








Memphis




Texas and 


Banking




Panhandle


Arkansas*


Mississippi*


Missouri


Area


Tennessee*


Louisiana


and Other


Total

LOAN AND LEASE PORTFOLIO:


















Commercial and industrial

$   78,447


$   184,004


$   295,398


$  21,656


$     22,151


$     87,812


$   301,052


$   723,492


$  1,714,012

Real estate


















   Consumer mortgages

179,069


276,898


709,536


68,573


111,936


166,424


541,041


137,788


2,191,265

   Home equity

70,133


40,706


168,679


21,146


70,006


80,539


64,831


2,223


518,263

   Agricultural

7,204


73,145


55,899


3,065


13,757


11,895


72,511


4,547


242,023

   Commercial and industrial-owner occupied

177,765


169,198


463,012


66,224


91,349


90,381


319,516


131,234


1,508,679

   Construction, acquisition and development

120,547


71,224


214,651


21,009


74,120


116,058


173,894


28,133


819,636

   Commercial real estate

273,560


329,167


281,569


198,130


108,243


110,457


427,991


187,460


1,916,577

Credit cards

-


-


-


-


-


-


-


109,464


109,464

All other

27,508


41,794


127,743


3,453


35,378


34,717


72,335


147,695


490,623

     Total loans

$ 934,233


$ 1,186,136


$ 2,316,487


$ 403,256


$   526,940


$   698,283


$ 1,973,171


$ 1,472,036


$  9,510,542



















CAD PORTFOLIO:


















Multi-family construction

$   11,151


$       1,122


$             5


$           -


$             -


$       8,725


$       3,073


$             -


$       24,076

One-to-four family construction

39,432


14,450


50,009


3,883


11,238


58,286


42,309


459


220,066

Recreation and all other loans

887


6,221


11,813


564


4,186


1,680


7,664


-


33,015

Commercial construction

34,593


19,576


68,862


5,764


20,493


23,762


50,426


22,258


245,734

Commercial acquisition and development

10,514


15,986


35,132


5,450


17,617


7,906


27,227


1,607


121,439

Residential acquisition and development

23,970


13,869


48,830


5,348


20,586


15,699


43,195


3,809


175,306

     Total CAD loans

$ 120,547


$     71,224


$   214,651


$  21,009


$     74,120


$   116,058


$   173,894


$     28,133


$     819,636



















NON-PERFORMING LOANS AND LEASES:


















Commercial and industrial

$     1,306


$       1,104


$         365


$           -


$           25


$         164


$         557


$         214


$        3,735

Real estate


















   Consumer mortgages

1,871


1,301


6,573


1,126


2,940


2,183


2,375


8,951


27,320

   Home equity

515


1


373


-


283


408


529


2


2,111

   Agricultural

100


18


210


266


-


37


16


-


647

   Commercial and industrial-owner occupied

816


3,569


5,574


102


663


763


453


4


11,944

   Construction, acquisition and development

1,514


64


2,466


-


1,459


355


1,558


2


7,418

   Commercial real estate

2,053


119


1,692


635


3,285


3,665


943


867


13,259

Credit cards

-


-


-


-


-


-


-


1,418


1,418

All other

-


46


382


-


10


334


296


15


1,083

     Total loans

$     8,175


$       6,222


$     17,635


$    2,129


$       8,665


$       7,909


$       6,727


$     11,473


$       68,935



















NON-PERFORMING LOANS AND LEASES


















   AS A PERCENTAGE OF OUTSTANDING:


















Commercial and industrial

1.66%


0.60%


0.12%


0.00%


0.11%


0.19%


0.19%


0.03%


0.22%

Real estate


















   Consumer mortgages

1.04%


0.47%


0.93%


1.64%


2.63%


1.31%


0.44%


6.50%


1.25%

   Home equity

0.73%


0.00%


0.22%


0.00%


0.40%


0.51%


0.82%


0.09%


0.41%

   Agricultural

1.39%


0.02%


0.38%


8.68%


0.00%


0.31%


0.02%


0.00%


0.27%

   Commercial and industrial-owner occupied

0.46%


2.11%


1.20%


0.15%


0.73%


0.84%


0.14%


0.00%


0.79%

   Construction, acquisition and development

1.26%


0.09%


1.15%


0.00%


1.97%


0.31%


0.90%


0.01%


0.91%

   Commercial real estate

0.75%


0.04%


0.60%


0.32%


3.03%


3.32%


0.22%


0.46%


0.69%

Credit cards

-


-


-


-


-


-


-


1.30%


1.30%

All other

0.00%


0.11%


0.30%


0.00%


0.03%


0.96%


0.41%


0.01%


0.22%

     Total loans

0.88%


0.52%


0.76%


0.53%


1.64%


1.13%


0.34%


0.78%


0.72%





































*Excludes the Greater Memphis Area.


















 

 

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)




















September 30, 2014


Alabama








Greater










and Florida








Memphis




Texas and 






Panhandle


Arkansas*


Mississippi*


Missouri


Area


Tennessee*


Louisiana


Other


Total

OTHER REAL ESTATE OWNED:


















Commercial and industrial

$          84


$                -


$                -


$            -


$                -


$             -


$           -


$           -


$          84

Real estate


















   Consumer mortgages

809


97


1,777


-


-


173


29


-


2,885

   Home equity

-


-


188


-


-


-


-


-


188

   Agricultural

-


-


216


-


462


-


-




678

   Commercial and industrial-owner occupied

-


-


2,456


-


601


238


60


-


3,355

   Construction, acquisition and development

8,318


83


9,957


37


12,156


2,817


140


-


33,508

   Commercial real estate

796


288


646


-


-


121


-


-


1,851

All other

-


-


142


-


-


-


-


-


142

     Total loans

$    10,007


$            468


$       15,382


$          37


$       13,219


$      3,349


$       229


$           -


$    42,691




















Quarter Ended










Sep-14


Jun-14


Mar-14


Dec-13


Sep-13









OTHER REAL ESTATE OWNED:


















Balance, beginning of period

$    55,253


$       63,595


$       69,338


$    76,853


$       88,438









Additions to foreclosed properties


















   New foreclosed property

3,476


4,144


4,855


7,868


9,536









Reductions in foreclosed properties


















   Sales

(14,429)


(10,269)


(8,767)


(14,272)


(19,333)









   Writedowns

(1,609)


(2,217)


(1,831)


(1,111)


(1,788)









Balance, end of period

$    42,691


$       55,253


$       63,595


$    69,338


$       76,853



























FORECLOSED PROPERTY EXPENSE


















Loss on sale of other real estate owned

$      3,289


$         1,073


$            466


$        949


$            352









Writedown of other real estate owned

1,609


2,217


1,831


1,111


1,788









Other foreclosed property expense

823


912


258


771


1,158









Total foreclosed property expense

$      5,721


$         4,202


$         2,555


$      2,831


$         3,298













































*Excludes the Greater Memphis Area.


















 

 

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)












Quarter Ended


Sep-14


Jun-14


Mar-14


Dec-13


Sep-13

NONINTEREST REVENUE:










Mortgage lending

$      6,938


$         9,089


$         3,394


$      9,605


$         5,134

Credit card, debit card and merchant fees

8,972


8,567


7,843


8,324


8,834

Service charges

13,111


12,437


12,536


13,570


13,679

Securities gains, net

18


5


(4)


29


(5)

Insurance commissions

29,246


28,621


31,599


21,397


23,800

Trust income

3,537


3,624


3,568


3,717


3,332

Annuity fees

461


695


772


566


719

Brokerage commissions and fees

1,963


1,509


1,576


1,037


2,005

Bank-owned life insurance

1,865


1,885


1,849


2,466


1,954

Other miscellaneous income

3,167


3,406


3,384


4,414


3,062

     Total noninterest revenue

$    69,278


$       69,838


$       66,517


$    65,125


$       62,514











NONINTEREST EXPENSE:










Salaries and employee benefits

$    77,453


$       74,741


$       78,883


$    75,466


$       73,532

Occupancy, net of rental income

10,313


10,245


10,287


9,935


10,360

Equipment

4,205


4,169


4,499


4,298


4,555

Deposit insurance assessments

2,125


2,035


1,600


2,687


3,325

Amortization of bond issue cost

12


12


12


12


2,907

Advertising

1,192


1,331


632


1,436


1,210

Foreclosed property expense

5,721


4,202


2,555


2,831


3,298

Telecommunications

2,254


2,258


2,248


1,971


2,227

Public relations

950


857


822


972


1,105

Data processing

2,734


2,863


2,741


2,939


2,772

Computer software

2,488


2,851


2,423


2,197


2,190

Amortization of intangibles

1,126


1,148


1,058


819


686

Legal

2,620


3,002


1,878


2,537


4,626

Merger expense

188


1,009


560


-


-

Postage and shipping

1,103


1,116


1,287


1,133


1,027

Other miscellaneous expense

19,215


16,115


15,222


18,597


15,577

Total noninterest expense

$  133,699


$      127,954


$      126,707


$  127,830


$      129,397











INSURANCE COMMISSIONS:










Property and casualty commissions

$    22,746


$       21,576


$       19,987


$    15,588


$       18,372

Life and health commissions

5,128


5,549


5,010


4,525


4,061

Risk management income

708


617


705


648


628

Other

664


879


5,897


636


739

Total insurance commissions

$    29,246


$       28,621


$       31,599


$    21,397


$       23,800











 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)












Quarter Ended


Sep-14


Jun-14


Mar-14


Dec-13


Sep-13

MORTGAGE SERVICING RIGHTS:










Fair value, beginning of period

$     52,272


$       53,436


$       54,662


$     51,025


$       49,001

Additions to mortgage servicing rights:










   Originations of servicing assets

2,400


2,565


1,460


1,984


3,826

Changes in fair value:










   Due to payoffs/paydowns

(1,559)


(1,616)


(1,138)


(1,240)


(1,560)

   Due to change in valuation inputs or










     assumptions used in the valuation model

648


(2,111)


(1,547)


2,894


(240)

   Other changes in fair value

(2)


(2)


(1)


(1)


(2)

Fair value, end of period

$     53,759


$       52,272


$       53,436


$     54,662


$       51,025











MORTGAGE LENDING REVENUE:










Origination

$       3,736


$         8,758


$         1,964


$       3,590


$         2,862

Servicing

4,113


4,058


4,115


4,361


4,072

MSR payoffs/paydowns

(1,559)


(1,616)


(1,138)


(1,240)


(1,560)

MSR valuation adjustment

648


(2,111)


(1,547)


2,894


(240)

Total mortgage lending revenue

$       6,938


$         9,089


$         3,394


$       9,605


$         5,134











Mortgage loans serviced

$ 5,649,897


$   5,630,192


$   5,568,828


$ 5,577,325


$   5,543,619

MSR/mtg loans serviced

0.95%


0.93%


0.96%


0.98%


0.92%











AVAILABLE-FOR-SALE SECURITIES, at fair value










U.S. Government agencies

$ 1,238,088


$   1,333,368


$   1,419,269


$ 1,458,349


$   1,519,459

Government agency issued residential










   mortgage-back securities

218,748


229,414


241,596


250,234


268,367

Government agency issued commercial










   mortgage-back securities

237,325


237,321


234,059


230,912


229,412

Obligations of states and political subdivisions

509,304


520,897


523,811


519,405


528,889

Other

7,997


11,192


8,023


8,089


8,029

Total available-for-sale securities

$ 2,211,462


$   2,332,192


$   2,426,758


$ 2,466,989


$   2,554,156

 

 

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 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:






















Quarter ended




9/30/2014


6/30/2014


3/31/2014


12/31/2013


9/30/2013













Net income


$          28,778


$          30,868


$          28,444


$          27,698


$         24,857

Plus:

Provision for credit losses


-


-


-


-


500


Income tax expense


12,414


14,097


12,889


12,014


8,001

Pre-tax, pre-provision earnings


$          41,192


$          44,965


$          41,333


$          39,712


$         33,358













Net income


$          28,778


$          30,868


$          28,444


$          27,698


$         24,857

Plus:

Merger expense, net of tax


117


626


347


-


-


One time charge for BSA, net of tax


1,903


-


-


-


-


Legal charge, net of tax


-


-


-


-


1,085


Write off unamortized TRUPS issue cost, net of tax

-


-


-


-


1,789

Net operating income


$          30,798


$          31,494


$          28,791


$          27,698


$         27,731

 

 

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




9/30/2014


6/30/2014


3/31/2014


12/31/2013


9/30/2013

Tangible assets











Total assets


$    13,071,557


$    12,985,887


$    13,143,555


$    13,029,733


$   12,916,153

Less:  

Goodwill


291,498


291,498


286,800


286,800


275,173


Other identifiable intangible assets


25,619


26,745


25,021


26,079


15,179

Total tangible assets


$    12,754,440


$    12,667,644


$    12,831,734


$    12,716,854


$   12,625,801













Tangible shareholders' equity











Total shareholders' equity


$     1,610,543


$     1,588,850


$     1,554,676


$      1,513,130


$    1,480,611

Less:

Goodwill


291,498


291,498


286,800


286,800


275,173


Other identifiable intangible assets


25,619


26,745


25,021


26,079


15,179

Total tangible shareholders' equity


$     1,293,426


$     1,270,607


$     1,242,855


$      1,200,251


$    1,190,259













Total average assets


$    12,987,103


$    12,933,879


$    13,087,128


$    12,955,127


$   12,928,505

Total common shares outstanding


96,065,021


96,046,057


96,004,679


95,231,691


95,211,602

Average shares outstanding-diluted


96,373,950


96,373,121


95,952,611


96,644,383


95,519,318













Tangible shareholders' equity to tangible assets*


10.14%


10.03%


9.69%


9.44%


9.43%

Return on tangible equity **


8.83%


9.74%


9.28%


9.16%


8.29%

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


1.26%


1.39%


1.28%


1.22%


1.02%

Tangible book value per share****


$           13.46


$           13.23


$           12.95


$            12.60


$          12.50

Operating earnings per share*****


$             0.32


$             0.33


$             0.30


$              0.29


$            0.29

























*

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.

 

 

 


To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bancorpsouth-announces-third-quarter-2014-earnings-255968355.html

SOURCE BancorpSouth, Inc.