BancorpSouth Announces Third Quarter 2017 Financial Results

TUPELO, Miss., Oct. 18, 2017 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended September 30, 2017.

Highlights for the third quarter of 2017 included:

  • Net income of $39.5 million, or $0.43 per diluted share.
     
  • Net operating income – excluding MSR – of $39.6 million, or $0.43 per diluted share.
     
  • Net interest margin increased to 3.58 percent.
     
  • Credit quality remained strong; recorded provision for credit losses of $0.5 million for the quarter.
     
  • Total operating expense declined compared to the second quarter of 2017 and the third quarter of 2016 and operating efficiency ratio – excluding MSR – improved to 67.2 percent.
     
  • Repurchased 699,888 shares of outstanding common stock at a weighted average price of $28.99 per share.
     
  • Announced a corporate entity restructuring, whereby the holding company structure will be eliminated through the merger of BancorpSouth, Inc. with and into its wholly owned subsidiary, BancorpSouth Bank (the "Bank") with the Bank continuing as the surviving entity (the "Reorganization").
     
  • On October 6, 2017, the Bank received results from the Federal Deposit Insurance Corporation (the "FDIC") 2017 Community Reinvestment Act ("CRA") examination, which reflected an overall CRA rating of "Satisfactory".

The Company reported net income of $39.5 million, or $0.43 per diluted share, for the third quarter of 2017 compared with net income of $37.8 million, or $0.40 per diluted share, for the third quarter of 2016 and net income of $37.9 million, or $0.41 per diluted share, for the second quarter of 2017.    

The Company reported net operating income – excluding MSR – of $39.6 million, or $0.43 per diluted share, for the third quarter of 2017 compared to $36.7 million, or $0.39 per diluted share, for the third quarter of 2016 and $38.8 million, or $0.42 per diluted share, for the second quarter of 2017.  Net operating income – excluding MSR – is a non-GAAP financial measure used by management to assess the core operating performance of the Company.  This measure excludes items such as securities gains and losses, mortgage servicing rights ("MSR") valuation adjustments, restructuring charges, merger-related expenses, industry-related legal settlements, and other one-time charges. 

"First and foremost, we are pleased to have recently received positive results regarding our CRA examination," remarked Dan Rollins, Chairman and Chief Executive Officer.  "We have consistently communicated our teammates' commitment to the communities we serve as well as our priority to meet or exceed all regulatory requirements and expectations.  We are excited to have this examination behind us as we look to continue to execute our strategic plan."

"Further, our third quarter results reflect yet another quarter of continued steady improvement in our profitability and performance metrics.  Our net interest margin increased to 3.58 percent for the quarter, which is the result of continued loan yield pickup from recent rate increases combined with our stable core deposit base.  Total operating expenses declined for the quarter, which resulted in a decline in the operating efficiency ratio – excluding MSR – to 67.2 percent.  These successes contributed to improvement in our quarterly return on assets to 1.07 percent.  Finally, we continue to diligently manage our capital levels, as we repurchased approximately 0.7 million shares during the quarter at a weighted average price of $28.99 per share."

Net Interest Revenue

Net interest revenue was $120.6 million for the third quarter of 2017, an increase of 5.2 percent from $114.6 million for the third quarter of 2016 and an increase of 2.6 percent from $117.5 million for the second quarter of 2017.  The fully taxable equivalent net interest margin was 3.58 percent for the third quarter of 2017 compared to 3.51 percent for the third quarter of 2016 and 3.52 percent for the second quarter of 2017.  Yields on loans and leases were 4.33 percent for the third quarter of 2017 compared with 4.20 percent for the third quarter of 2016 and 4.27 percent for the second quarter of 2017, while yields on total interest earning assets were 3.89 percent for the third quarter of 2017 compared with 3.74 percent for the third quarter of 2016 and 3.80 percent for the second quarter of 2017.  The average cost of deposits was 0.26 percent for the third quarter of 2017 compared to 0.22 percent for the third quarter of 2016 and 0.25 percent for the second quarter of 2017.

Asset, Deposit and Loan Activity

Total assets were $14.8 billion at September 30, 2017 compared with $14.6 billion at September 30, 2016.  Loans and leases, net of unearned income, were $11.1 billion at September 30, 2017 compared with $10.7 billion at September 30, 2016. 

Total deposits were $11.8 billion at September 30, 2017 compared with $11.6 billion at September 30, 2016.  Time deposits decreased $72.4 million, or 3.9 percent, at September 30, 2017 compared to September 30, 2016.  Over the same time period, interest bearing demand deposits increased $47.6 million, or 1.0 percent, while noninterest bearing demand deposits increased $106.0 million, or 3.2 percent, and savings deposits increased $104.6 million, or 6.8 percent.

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the third quarter reflect a provision for credit losses of $0.5 million, compared to no provision for the third quarter of 2016 and a provision of $1.0 million for the second quarter of 2017.  Net charge-offs for the third quarter of 2017 were $2.6 million, compared with net charge-offs of $1.0 million for the third quarter of 2016 and net charge-offs of $4.6 million for the second quarter of 2017.  The allowance for credit losses was $119.5 million, or 1.08 percent of net loans and leases, at September 30, 2017, compared with $125.9 million, or 1.18 percent of net loans and leases, at September 30, 2016 and $121.6 million, or 1.10 percent of net loans and leases, at June 30, 2017. 

Total non-performing assets were $71.0 million, or 0.64 percent of net loans and leases, at September 30, 2017 compared with $102.3 million, or 0.96 percent of net loans and leases, at September 30, 2016, and $79.4 million, or 0.72 percent of net loans and leases, at June 30, 2017.  Other real estate owned was $6.0 million at September 30, 2017 compared with $11.4 million at September 30, 2016 and $7.7 million at June 30, 2017.

Noninterest Revenue

Noninterest revenue was $66.0 million for the third quarter of 2017, compared with $69.7 million for the third quarter of 2016 and $68.1 million for the second quarter of 2017.  These results included the MSR valuation adjustment, which was essentially flat for the third quarter of 2017, compared with a positive MSR valuation adjustment of $1.8 million for the third quarter of 2016 and a negative MSR valuation adjustment of $1.5 million for the second quarter of 2017.  Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.   

Excluding the MSR valuation adjustments, mortgage banking revenue was $7.0 million for the third quarter of 2017, compared with $9.3 million for the third quarter of 2016 and $7.6 million for the second quarter of 2017.  Mortgage origination volume for the third quarter of 2017 was $342.4 million, compared with $478.2 million for the third quarter of 2016 and $385.9 million for the second quarter of 2017.

Credit and debit card fee revenue was $9.3 million for the third quarter of 2017, compared with $9.3 million for the third quarter of 2016 and $9.6 million for the second quarter of 2017.  Deposit service charge revenue was $10.4 million for the third quarter of 2017, compared with $11.3 million for the third quarter of 2016 and $9.7 million for the second quarter of 2017.  Insurance commission revenue was $28.6 million for the third quarter of 2017, compared with $28.2 million for the third quarter of 2016 and $31.1 million for the second quarter of 2017.  Wealth management revenue was $5.4 million for the third quarter of 2017, compared with $5.3 million for both the third quarter of 2016 and the second quarter of 2017.    

Noninterest Expense

Noninterest expense for the third quarter of 2017 was $126.9 million, compared with $128.3 million for the third quarter of 2016 and $127.6 million for the second quarter of 2017.  Salaries and employee benefits expense was $81.4 million for the third quarter of 2017 compared to $80.9 million for the third quarter of 2016 and $81.6 million for the second quarter of 2017.  Occupancy expense was $10.3 million for the third quarter of 2017, compared with $10.4 million for the third quarter of 2016 and $10.5 million for the second quarter of 2017.  Other noninterest expense was $29.3 million for the third quarter of 2017, compared to $30.4 million for the third quarter of 2016 and $29.8 million for the second quarter of 2017.

Capital Management

The Company's equity capitalization is comprised entirely of common stock.  BancorpSouth's ratio of shareholders' equity to assets was 11.52 percent at September 30, 2017, compared with 11.80 percent at September 30, 2016 and 11.40 percent at June 30, 2017.  The ratio of tangible shareholders' equity to tangible assets was 9.56 percent at September 30, 2017, compared with 9.86 percent at September 30, 2016 and 9.44 percent at June 30, 2017.

During the third quarter of 2017, the Company repurchased 699,888 shares of its outstanding common stock at a weighted average price of $28.99 per share pursuant to its share repurchase program which is intended to comply with Rules 10b-18 and 10b5-1 promulgated under the Securities and Exchange Act of 1934, as amended.  During the second quarter of 2017, the Company repurchased 1,381,634 shares at a weighted average price of $29.64 per share.  As of September 30, 2017, the Company had 2,316,727 remaining shares available for repurchase under its current share repurchase authorization, which expires on December 29, 2017.  

Estimated regulatory capital ratios at September 30, 2017 were calculated in accordance with the Basel III capital framework.  BancorpSouth is a "well capitalized" bank holding company, as defined by federal regulations, at September 30, 2017, with Tier 1 risk-based capital of 12.04 and total risk-based capital of 13.03 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification. 

TRANSACTIONS

The Reorganization

On July 26, 2017, the Company, as part of a plan to effect a corporate entity restructuring, entered into an Agreement and Plan of Reorganization with the Bank.  Thereafter, on August 15, 2017, the Company and the Bank entered into an Amended and Restated Agreement and Plan of Reorganization (the "Amended Plan of Reorganization") which provides that the Company will be merged with and into the Bank with the Bank continuing as the surviving entity.  Upon completion of the Reorganization, the separate existence of the Company will cease, and all of the rights, privileges, powers, franchises, properties, assets, liabilities and obligations of the Company will be vested in and assumed by the Bank.

The Reorganization and the Amended Plan of Reorganization are described in more detail in the Company's Definitive Proxy Statement on Schedule 14A that was filed with the Securities and Exchange Commission (the "SEC") on August 29, 2017.  The Board of Directors of the Company and the Bank each unanimously adopted the Amended Plan of Reorganization, and the shareholders of the Company approved the Amended Plan of Reorganization on September 27, 2017.  The Company currently expects to complete the Reorganization during the fourth quarter, assuming that all of the conditions to completion of the Reorganization have been satisfied.  The Company, however, can provide no assurances that the Reorganization will close in a timely manner or at all.

Waguespack & Associates Insurance, Inc.

On December 19, 2016, BancorpSouth Insurance Services, Inc. announced and closed the acquisition of certain assets of Gonzales, Louisiana based Waguespack & Associates Insurance, Inc.  The agency was formed in 1986 and is expected to produce annual revenues of approximately $3 million.  Waguespack will continue to operate under current leadership in its current location in Gonzales.

Central Community Corporation

On January 21, 2014, the Company announced the signing of a definitive merger agreement (the "CCC Merger Agreement") with Central Community Corporation ("CCC"), headquartered in Temple, Texas, pursuant to which CCC agreed to be merged with and into the Company (the "CCC Merger").  CCC 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, 2017, CCC, on a consolidated basis, reported total assets of $1.4 billion, total loans of $706.8 million and total deposits of $1.2 billion.  Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company's common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation's capital stock, subject to certain conditions and potential adjustments.  The terms of the agreement provide for a minimum total deal value of $202.5 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.

For more information regarding the CCC Merger and the CCC Merger Agreement, please refer to the Company's Proxy Statement/Prospectus that was filed with the SEC on March 24, 2014 and the Company's Current Reports on Form 8-K that were filed with the SEC on July 24, 2014, July 1, 2015, October 14, 2016 and August 16, 2017.  As previously reported in the Company's Current Report on Form 8-K filed on August 16, 2017, the Company, CCC and the Bank entered into a fourth amendment to the CCC Merger Agreement that, among other things, provides for the substitution of the Bank for the Company as a party to the CCC Merger Agreement with the Bank assuming all obligations of the Company under the CCC Merger Agreement ("CCC Amendment No. 4"). CCC Amendment No. 4 will become effective simultaneously with the effectiveness of the Reorganization.

The CCC Merger was unanimously approved by the Board of Directors of the Company and CCC and was approved by CCC shareholders on April 24, 2014.  The CCC Merger Agreement has been extended until December 31, 2017 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions.  The Company expects the CCC Merger to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the CCC Merger will close timely or at all.

Ouachita Bancshares Corp.

On January 8, 2014, the Company announced the signing of a definitive merger agreement (the "OIB 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. agreed to be merged with and into the Company (the "OIB Merger").  OIB operates 11 full-service banking offices along the I-20 corridor and has a loan production office in Madison, Mississippi.  As of September 30, 2017, OIB, on a consolidated basis, reported total assets of $730.2 million, total loans of $497.7 million and total deposits of $607.0 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 agreement provide for a minimum total deal value of $111.1 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.

For more information regarding the OIB Merger and the OIB Merger Agreement, please refer to the Company's Proxy Statement/Prospectus that was filed with the SEC on March 10, 2014 and the Company's Current Reports on Form 8-K that were filed with the SEC on July 24, 2014, July 1, 2015, October 14, 2016 and August 16, 2017.  As previously reported in the Company's Current Report on Form 8-K filed on August 16, 2017, the Company, OIB and the Bank entered into a fourth amendment to the OIB Merger Agreement that, among other things, provides for the substitution of the Bank for the Company as a party to the OIB Merger Agreement with the Bank assuming all obligations of the Company under the OIB Merger Agreement ("OIB Amendment No. 4"). OIB Amendment No. 4 will become effective simultaneously with the effectiveness of the Reorganization.

The OIB Merger was unanimously approved by the Board of Directors of the Company and OIB and was approved by OIB shareholders on April 8, 2014.  The OIB Merger Agreement has been extended until December 31, 2017 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions.  The Company expects the OIB Merger to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the OIB Merger will close timely or at all.

Summary

Rollins concluded, "While our story seems repetitive quarter after quarter, we are extremely proud of the progress we are making as a company.  We continue to take actions to simplify our business model and improve efficiency, as evidenced by the proposed elimination of our holding company structure.  This transaction has been approved by our shareholders and is currently pending regulatory approval.  As we look forward, our business development teams are focused on calling on customers and growing our company.  I'm confident their efforts, combined with our focus on efficiency, will allow us to continue to deliver improved performance to our shareholders."

Non-GAAP Measures and Ratios

This news release presents certain financial measures and ratios that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP").  A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears under the caption "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions"  beginning on page 19 of this news release.

Conference Call and Webcast

BancorpSouth will conduct a conference call to discuss its third quarter 2017 results on October 19, 2017, at 10:00 a.m. (Central Time).  This conference call will be an interactive session between management and analysts. Shareholders and other interested parties may listen to this live conference call via Internet webcast by accessing www.BancorpSouth.com/Webcast. The webcast will also be available in archived format at the same address.

About BancorpSouth

BancorpSouth (NYSE: BXS) is headquartered in Tupelo, Mississippi, with $14.8 billion in assets.  BancorpSouth operates 234 full service branch locations as well as additional mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.  BancorpSouth is committed to a culture of respect, diversity, and inclusion in both its workplace and communities. To learn more, visit our Community Commitment page at www.bancorpsouth.com.  Like us on Facebook; follow us on Twitter: @MyBXS; or connect with us through LinkedIn.

Forward-Looking Statements

Certain statements contained in this news release may not be based upon historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the 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 closing of the Reorganization, the proposed impact of the Reorganization on the Bank, the ability of the Company and the Bank to close the Reorganization in a timely manner or at all, the terms, timing and closings of the proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation, 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 Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its Bank Secrecy Act ("BSA") and anti-money laundering ("AML") compliance program and its fair lending compliance program, the Company's compliance with the consent order it entered into with the Consumer Financial Protection Bureau and the United States Department of Justice related to the Company's fair lending practices (the "Consent Order"), 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, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company's reserve for losses from representation and warranty obligations, the Company's foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, the impact of interest rates on loan yields, calculation of economic value of equity, impaired loan charge-offs, diversification of the Company's revenue stream, the growth of the Company's insurance business and commission revenue, the growth of the Company's customer base and loan, deposit and fee revenue sources, liquidity needs and strategies, sources of funding, net interest margin, declaration and payment of dividends, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, improvement in the Company's efficiencies, operating expense trends, future acquisitions and consideration to be used therefor, and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters. 

The Company cautions readers not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors. These factors may include, but are not limited to, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program and its fair lending compliance program, the Company's ability to successfully implement and comply with the Consent Order, the ability of the Company, Ouachita Bancshares Corp. and Central Community Corporation to obtain regulatory approval of and close the proposed mergers, the willingness of Ouachita Bancshares Corp. and Central Community Corporation to proceed with the proposed mergers, the potential impact upon the Company of the delay in the closings of these proposed mergers, the ability of the Company and the Bank to complete the Reorganization, the ability of the Company and the Bank to satisfy the conditions to the completion of the Reorganization, including the receipt of regulatory approvals required for the Reorganization, the ability of the Company and the Bank to meet expectations regarding the timing, completion and accounting and tax treatments of the Reorganization, the possibility that any of the anticipated benefits of the Reorganization will not be realized or will not be realized as expected, the failure of the Reorganization to close for any other reason, the possibility that the Reorganization may be more expensive to complete than anticipated, including as a result of unexpected factors or events, the lack of availability of the Bank's filings mandated by the Exchange Act from the SEC's publicly available website after the closing of the Reorganization, the impact of any ongoing, pending or threatened litigation, administrative and investigatory matters involving the Company, conditions in the financial markets and economic conditions generally, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, limitations on the Company's ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Act, and supervision of the Company's operations, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic and environmental conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of the loss of any key Company personnel, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the growth of the Company's insurance business and commission revenue, the growth of the Company's loan, deposit and fee revenue sources, the Company's ability to adapt its products and services to evolving industry standards and consumer preferences, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company's growth strategy, interruptions or breaches in the Company's information system security, the failure of certain third-party vendors to perform, unfavorable ratings by rating agencies, dilution caused by the Company's issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, other factors generally understood to affect the assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies and other factors detailed from time to time in the Company's press and news releases, reports and other filings with the 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

Year to Date

Year to Date
 

9/30/2017

6/30/2017

3/31/2017

12/31/2016

9/30/2016

9/30/2017

9/30/2016

Earnings Summary:

              

Interest revenue

$                    130,934

$                    126,855

$                    122,926

$                    123,444

$                    122,340

$            380,715

$            359,735

Interest expense

10,373

9,377

8,315

8,057

7,750

28,065

21,670

Net interest revenue

120,561

117,478

114,611

115,387

114,590

352,650

338,065

Provision for credit losses

500

1,000

1,000

1,000

-

2,500

3,000

Net interest revenue, after provision

              

   for credit losses

120,061

116,478

113,611

114,387

114,590

350,150

335,065

Noninterest revenue

65,960

68,130

70,869

71,975

69,673

204,959

202,926

Noninterest expense

126,903

127,553

127,109

130,519

128,317

381,565

397,390

Income before income taxes

59,118

57,055

57,371

55,843

55,946

173,544

140,601

Income tax expense

19,590

19,166

19,278

18,173

18,129

58,034

45,543

Net income

$                      39,528

$                      37,889

$                      38,093

$                      37,670

$                      37,817

$            115,510

$              95,058
               

Balance Sheet - Period End Balances

              

Total assets

$               14,760,394

$               14,843,130

$               14,866,054

$               14,724,388

$               14,611,483

$       14,760,394

$       14,611,483

Total earning assets

13,606,145

13,674,436

13,757,920

13,549,407

13,483,345

13,606,145

13,483,345

Total securities

2,359,967

2,421,295

2,540,887

2,531,676

2,468,199

2,359,967

2,468,199

Loans and leases, net of unearned income

11,055,509

11,018,540

10,801,694

10,811,991

10,658,761

11,055,509

10,658,761

Allowance for credit losses

119,496

121,561

125,196

123,736

125,887

119,496

125,887

Total deposits

11,775,988

11,938,296

12,042,845

11,688,141

11,590,059

11,775,988

11,590,059

Long-term debt

30,000

230,000

530,000

530,000

563,495

30,000

563,495

Total shareholders' equity

1,700,502

1,691,832

1,702,389

1,723,883

1,724,104

1,700,502

1,724,104
               

Balance Sheet - Average Balances

              

Total assets

$               14,710,245

$               14,741,811

$               14,832,260

$               14,655,360

$               14,366,759

$       14,760,991

$       14,083,108

Total earning assets

13,591,124

13,636,415

13,715,612

13,525,284

13,265,266

13,647,261

13,020,338

Total securities

2,367,633

2,497,108

2,507,701

2,479,008

2,186,889

2,456,967

2,098,220

Loans and leases, net of unearned income

11,013,270

10,883,102

10,820,486

10,737,802

10,601,481

10,906,326

10,496,431

Total deposits

11,802,682

11,902,415

11,941,851

11,700,213

11,509,764

11,881,806

11,459,739

Long-term debt

162,609

398,132

530,000

534,141

430,886

362,234

240,056

Total shareholders' equity

1,695,899

1,680,053

1,731,931

1,724,871

1,719,503

1,702,496

1,693,055
               

Nonperforming Assets:

              

Non-accrual loans and leases

$                      55,796

$                      63,585

$                      74,439

$                      71,812

$                      70,725

$              55,796

$              70,725

Loans and leases 90+ days past due, still accruing

1,855

1,793

3,063

3,983

2,255

1,855

2,255

Restructured loans and leases, still accruing

7,366

6,303

4,060

26,047

17,936

7,366

17,936

Non-performing loans (NPLs)

65,017

71,681

81,562

101,842

90,916

65,017

90,916

Other real estate owned

5,956

7,704

8,458

7,810

11,391

5,956

11,391

Non-performing assets (NPAs)

$                      70,973

$                      79,385

$                      90,020

$                    109,652

$                    102,307

$              70,973

$            102,307
               

Financial Ratios and Other Data:

              

Return on average assets

1.07%

1.03%

1.04%

1.02%

1.05%

1.05%

0.90%

Operating return on average assets-excluding MSR*

1.07%

1.06%

1.01%

0.83%

1.02%

1.04%

1.05%

Return on average shareholders' equity

9.25%

9.05%

8.92%

8.69%

8.75%

9.07%

7.50%

Operating return on average shareholders' equity-excluding MSR*

9.25%

9.27%

8.63%

7.08%

8.49%

9.05%

8.74%

Return on tangible equity*

11.36%

11.08%

11.19%

10.70%

10.68%

11.18%

9.01%

Operating return on tangible equity-excluding MSR*

11.36%

11.35%

10.82%

8.71%

10.36%

11.16%

10.50%

Noninterest income to average assets

1.78%

1.85%

1.94%

1.95%

1.93%

1.86%

1.92%

Noninterest expense to average assets

3.42%

3.47%

3.48%

3.54%

3.55%

3.46%

3.77%

Net interest margin-fully taxable equivalent

3.58%

3.52%

3.46%

3.46%

3.51%

3.52%

3.55%

Net interest rate spread

3.45%

3.40%

3.35%

3.36%

3.41%

3.40%

3.45%

Efficiency ratio (tax equivalent)*

67.23%

67.90%

67.71%

68.79%

68.72%

67.61%

72.45%

Operating efficiency ratio-excluding MSR (tax equivalent)*

67.24%

67.33%

68.43%

73.14%

69.39%

67.66%

68.67%

Loan/deposit ratio

93.88%

92.30%

89.69%

92.50%

91.96%

93.88%

91.96%

Price to earnings multiple (avg)

19.42

18.83

19.15

22.02

18.86

19.42

18.86

Market value to book value

170.25%

164.07%

164.09%

168.76%

126.59%

170.25%

126.59%

Market value to book value (avg)

158.92%

161.24%

166.39%

145.61%

129.73%

160.35%

122.22%

Market value to tangible book value

209.66%

202.52%

202.32%

207.63%

154.87%

209.66%

154.87%

Market value to tangible book value (avg)

195.70%

199.07%

205.16%

179.14%

158.71%

197.47%

149.53%

Headcount FTE

3,950

3,989

3,973

3,998

3,981

3,950

3,981
               

*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 20 and 21.

          
               

Credit Quality Ratios:

              

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

0.09%

0.17%

(0.02%)

0.12%

0.04%

0.08%

0.05%

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

0.02%

0.04%

0.04%

0.04%

0.00%

0.03%

0.04%

Allowance for credit losses to net loans and leases

1.08%

1.10%

1.16%

1.14%

1.18%

1.08%

1.18%

Allowance for credit losses to non-performing loans and leases

183.79%

169.59%

153.50%

121.50%

138.47%

183.79%

138.47%

Allowance for credit losses to non-performing assets

168.37%

153.13%

139.08%

112.84%

123.05%

168.37%

123.05%

Non-performing loans and leases to net loans and leases

0.59%

0.65%

0.76%

0.94%

0.85%

0.59%

0.85%

Non-performing assets to net loans and leases

0.64%

0.72%

0.83%

1.01%

0.96%

0.64%

0.96%
               

Equity Ratios:

              

Total shareholders' equity to total assets

11.52%

11.40%

11.45%

11.71%

11.80%

11.52%

11.80%

Tangible shareholders' equity to tangible assets*

9.56%

9.44%

9.49%

9.73%

9.86%

9.56%

9.86%
               
               

Capital Adequacy:

              

Common  Equity Tier 1 capital

12.04%

11.90%

12.16%

12.23%

12.13%

12.04%

12.13%

Tier 1 capital

12.04%

11.90%

12.16%

12.34%

12.32%

12.04%

12.32%

Total capital

13.03%

12.91%

13.21%

13.38%

13.37%

13.03%

13.37%

Tier 1 leverage capital

10.02%

9.93%

9.95%

10.32%

10.53%

10.02%

10.53%

   Estimated for current quarter

              
               

Common Share Data:

              

Basic earnings per share

$                          0.43

$                          0.41

$                          0.41

$                          0.40

$                          0.40

$                  1.26

$                  1.01

Diluted earnings per share

0.43

0.41

0.41

0.40

0.40

1.25

1.00

Operating earnings per share*

0.43

0.41

0.40

0.40

0.40

1.25

1.10

Operating earnings per share- excluding MSR*

0.43

0.42

0.39

0.33

0.39

1.25

1.57

Cash dividends per share

0.14

0.13

0.13

0.13

0.13

0.39

0.33

Book value per share

18.83

18.59

18.44

18.40

18.33

18.83

18.33

Tangible book value per share*

15.29

15.06

14.95

14.95

14.98

15.29

14.98

Market value per share (last)

32.05

30.50

30.25

31.05

23.20

32.05

23.30

Market value per share (high)

32.70

31.85

32.40

31.75

25.09

32.70

25.09

Market value per share (low)

27.20

28.20

28.10

22.23

20.98

27.20

18.69

Market value per share (avg)

29.92

29.98

30.68

26.79

23.78

30.19

22.40

Dividend payout ratio

32.20%

30.48%

30.73%

31.11%

31.17%

31.05%

32.27%

Total shares outstanding

90,329,896

91,022,729

92,344,409

93,696,687

94,074,740

90,329,896

94,074,740

Average shares outstanding - basic

90,911,702

91,366,309

93,642,848

93,740,626

94,303,916

91,973,620

94,378,050

Average shares outstanding - diluted

91,099,770

91,530,552

93,829,400

93,966,392

94,563,833

92,157,392

94,617,389
               
               

Yield/Rate:

              

(Taxable equivalent basis)

              

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

4.33%

4.27%

4.20%

4.18%

4.20%

4.27%

4.20%

Available-for-sale securities:

              

  Taxable

1.41%

1.37%

1.35%

1.31%

1.33%

1.38%

1.37%

  Tax-exempt

5.25%

5.26%

5.29%

5.29%

5.32%

5.26%

5.35%

Short-term investments

1.02%

0.88%

0.76%

0.41%

0.52%

0.84%

0.42%

  Total interest earning assets and revenue

3.89%

3.80%

3.70%

3.70%

3.74%

3.80%

3.77%

Deposits

0.26%

0.25%

0.23%

0.23%

0.22%

0.25%

0.22%

  Demand - interest bearing

0.28%

0.25%

0.22%

0.20%

0.19%

0.25%

0.18%

  Savings

0.12%

0.12%

0.12%

0.12%

0.12%

0.12%

0.12%

  Other time

0.84%

0.81%

0.79%

0.79%

0.78%

0.81%

0.75%

Short-term borrowings

0.85%

0.69%

0.31%

0.16%

0.15%

0.68%

0.15%

Total interest bearing deposits & short-term borrowings

0.41%

0.37%

0.32%

0.31%

0.30%

0.37%

0.29%

Junior subordinated debt

N/A

N/A

3.29%

3.53%

3.27%

3.29%

3.23%

Long-term debt

1.79%

1.01%

0.87%

0.73%

0.83%

1.06%

1.16%

  Total interest bearing liabilities and expense

0.44%

0.40%

0.35%

0.34%

0.34%

0.39%

0.32%

Interest bearing liabilities to interest earning assets

69.55%

69.68%

70.24%

69.43%

69.33%

69.82%

69.52%

Net interest tax equivalent adjustment

$                        2,237

$                        2,248

$                        2,261

$                        2,371

$                        2,462

$                6,742

$                7,516
               

*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 19 and 20.

          

 

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)
           
 

Sep-17

Jun-17

Mar-17

Dec-16

Sep-16
 

(Dollars in thousands)

Assets

          

Cash and due from banks

$                167,871

$                178,376

$                147,684

$                184,152

$                172,782

Interest bearing deposits with other banks

52,316

49,680

253,738

38,813

151,944

Available-for-sale securities, at fair value

2,359,967

2,421,295

2,540,887

2,531,676

2,468,199

Loans and leases

11,073,306

11,037,808

10,822,568

10,835,512

10,685,166

  Less:  Unearned income

17,797

19,268

20,874

23,521

26,405

             Allowance for credit losses

119,496

121,561

125,196

123,736

125,887

Net loans and leases

10,936,013

10,896,979

10,676,498

10,688,255

10,532,874

Loans held for sale

138,353

184,921

161,600

166,927

204,441

Premises and equipment, net

311,530

306,863

305,250

305,561

305,245

Accrued interest receivable

44,454

40,716

42,329

42,005

41,583

Goodwill

300,798

300,798

300,798

300,798

294,901

Other identifiable intangibles

18,860

19,854

20,865

21,894

19,908

Bank owned life insurance

259,361

260,228

258,518

258,648

257,015

Other real estate owned

5,956

7,704

8,458

7,810

11,391

Other assets

164,915

175,716

149,429

177,849

151,200

Total Assets

$           14,760,394

$           14,843,130

$           14,866,054

$           14,724,388

$           14,611,483

Liabilities

          

Deposits:

          

  Demand:  Noninterest bearing

$             3,414,397

$             3,390,428

$             3,401,348

$             3,250,537

$             3,308,361

                  Interest bearing

4,925,127

5,095,570

5,182,011

5,034,470

4,877,482

  Savings

1,638,033

1,630,123

1,627,621

1,561,819

1,533,401

  Other time

1,798,431

1,822,175

1,831,865

1,841,315

1,870,815

Total deposits

11,775,988

11,938,296

12,042,845

11,688,141

11,590,059

Securities sold under agreement to repurchase

421,044

399,815

375,832

454,002

468,969

Federal funds purchased

          

   and other short-term borrowing

625,000

365,000

-

92,000

-

Accrued interest payable

4,826

4,259

4,109

3,975

4,107

Junior subordinated debt securities

-

-

-

12,888

23,198

Long-term debt

30,000

230,000

530,000

530,000

563,495

Other liabilities

203,034

213,928

210,879

219,499

237,551

Total Liabilities

13,059,892

13,151,298

13,163,665

13,000,505

12,887,379

Shareholders' Equity

          

Common stock

225,825

227,557

230,861

234,242

235,187

Capital surplus

175,837

191,940

226,204

271,292

278,973

Accumulated other comprehensive loss

(50,203)

(49,861)

(50,360)

(50,937)

(33,549)

Retained earnings

1,349,043

1,322,196

1,295,684

1,269,286

1,243,493

Total Shareholders' Equity

1,700,502

1,691,832

1,702,389

1,723,883

1,724,104

Total Liabilities & Shareholders' Equity

$           14,760,394

$           14,843,130

$           14,866,054

$           14,724,388

$           14,611,483

 

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)
           
 

Sep-17

Jun-17

Mar-17

Dec-16

Sep-16
 

(Dollars in thousands)

Assets

          

Cash and due from banks

$                153,797

$                156,387

$                162,696

$                171,791

$                157,233

Interest bearing deposits with other banks

83,109

117,414

258,502

165,805

311,545

Available-for-sale securities, at fair value

2,367,633

2,497,108

2,507,701

2,479,008

2,186,889

Loans and leases

11,032,159

10,903,524

10,843,069

10,763,314

10,629,522

  Less:  Unearned income

18,889

20,422

22,583

25,512

28,041

             Allowance for credit losses

121,501

125,578

124,662

125,526

126,820

Net loans and leases

10,891,769

10,757,524

10,695,824

10,612,276

10,474,661

Loans held for sale

127,112

138,792

128,923

142,669

165,351

Premises and equipment, net

309,592

306,483

305,637

305,994

305,707

Accrued interest receivable

40,100

38,702

38,774

38,648

38,125

Goodwill

300,798

300,798

300,798

296,888

294,901

Other identifiable intangibles

19,222

20,218

21,236

20,303

20,248

Bank owned life insurance

261,100

259,182

257,669

257,397

255,967

Other real estate owned

6,985

7,860

8,154

9,084

13,664

Other assets

149,028

141,343

146,346

155,497

142,468

Total Assets

$           14,710,245

$           14,741,811

$           14,832,260

$           14,655,360

$           14,366,759

Liabilities

          

Deposits:

          

  Demand:  Noninterest bearing

$             3,369,468

$             3,362,801

$             3,272,876

$             3,344,632

$             3,221,539

                   Interest bearing

4,985,113

5,079,388

5,244,069

4,951,906

4,886,920

  Savings

1,634,577

1,626,996

1,587,725

1,543,542

1,525,016

  Other time

1,813,524

1,833,230

1,837,181

1,860,133

1,876,289

Total deposits

11,802,682

11,902,415

11,941,851

11,700,213

11,509,764

Securities sold under agreement to repurchase

444,999

412,825

414,272

475,669

454,826

Federal funds purchased

          

   and other short-term borrowing

411,815

151,352

19,545

3,924

11

Accrued interest payable

4,507

4,028

3,867

4,031

3,950

Junior subordinated debt securities

-

-

1,146

21,181

23,198

Long-term debt

162,609

398,132

530,000

534,141

430,886

Other liabilities

187,734

193,006

189,648

191,330

224,621

Total Liabilities

13,014,346

13,061,758

13,100,329

12,930,489

12,647,256

Shareholders' Equity

          

Common stock

227,247

228,322

234,285

234,323

235,860

Capital surplus

189,545

199,115

265,685

271,900

283,437

Accumulated other comprehensive loss

(48,591)

(49,185)

(50,616)

(40,454)

(29,743)

Retained earnings

1,327,698

1,301,801

1,282,577

1,259,102

1,229,949

Total Shareholders' Equity

1,695,899

1,680,053

1,731,931

1,724,871

1,719,503

Total Liabilities & Shareholders' Equity

$           14,710,245

$           14,741,811

$           14,832,260

$           14,655,360

$           14,366,759

 

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)
                           
 

Quarter Ended

                

Year to Date
 

Sep-17

  

Jun-17

  

Mar-17

  

Dec-16

  

Sep-16

  

Sep-17

  

Sep-16

INTEREST REVENUE:

                          

Loans and leases

$  119,599

  

$  115,286

  

$   111,498

  

$  112,189

  

$  111,605

  

$ 346,383

  

$ 328,488

Deposits with other banks

214

  

256

  

485

  

169

  

409

  

955

  

901

Available-for-sale securities:

                          

    Taxable

7,378

  

7,509

  

7,350

  

7,105

  

6,189

  

22,237

  

18,086

    Tax-exempt

2,514

  

2,562

  

2,581

  

2,771

  

2,898

  

7,657

  

8,854

Loans held for sale

1,229

  

1,242

  

1,012

  

1,210

  

1,239

  

3,483

  

3,406

        Total interest revenue

130,934

  

126,855

  

122,926

  

123,444

  

122,340

  

380,715

  

359,735
                           

INTEREST EXPENSE:

                          

Interest bearing demand

3,482

  

3,204

  

2,786

  

2,514

  

2,361

  

9,472

  

6,732

Savings

494

  

483

  

472

  

470

  

462

  

1,449

  

1,356

Other time

3,819

  

3,725

  

3,582

  

3,711

  

3,661

  

11,126

  

10,451

Federal funds purchased and securities sold

                          

   under agreement to repurchase

754

  

509

  

322

  

190

  

173

  

1,585

  

472

Short-term and long-term debt

1,824

  

1,456

  

1,142

  

985

  

902

  

4,422

  

2,097

Junior subordinated debt

-

  

-

  

9

  

187

  

190

  

9

  

560

Other

-

  

-

  

2

  

-

  

1

  

2

  

2

        Total interest expense

10,373

  

9,377

  

8,315

  

8,057

  

7,750

  

28,065

  

21,670
                           

        Net interest revenue

120,561

  

117,478

  

114,611

  

115,387

  

114,590

  

352,650

  

338,065

  Provision for credit losses

500

  

1,000

  

1,000

  

1,000

  

-

  

2,500

  

3,000

        Net interest revenue, after provision for

                          

          credit losses

120,061

  

116,478

  

113,611

  

114,387

  

114,590

  

350,150

  

335,065
                           

NONINTEREST REVENUE:

                          

Mortgage banking

6,909

  

6,134

  

8,990

  

16,803

  

11,087

  

22,033

  

20,803

Credit card, debit card and merchant fees

9,346

  

9,565

  

8,903

  

9,262

  

9,292

  

27,814

  

27,748

Deposit service charges

10,388

  

9,706

  

9,689

  

9,956

  

11,313

  

29,783

  

33,345

Security gains, net

5

  

23

  

1,071

  

39

  

1

  

1,099

  

89

Insurance commissions

28,616

  

31,126

  

32,940

  

25,709

  

28,194

  

92,682

  

90,246

Wealth management

5,386

  

5,275

  

5,174

  

5,401

  

5,312

  

15,835

  

15,768

Other

5,310

  

6,301

  

4,102

  

4,805

  

4,474

  

15,713

  

14,927

        Total noninterest revenue

65,960

  

68,130

  

70,869

  

71,975

  

69,673

  

204,959

  

202,926
                           

NONINTEREST EXPENSE:

                          

Salaries and employee benefits

81,415

  

81,597

  

81,386

  

80,850

  

80,884

  

244,398

  

243,238

Occupancy, net of rental income

10,343

  

10,455

  

10,302

  

10,294

  

10,412

  

31,100

  

30,794

Equipment

3,352

  

3,438

  

3,568

  

3,563

  

3,423

  

10,358

  

10,483

Deposit insurance assessments

2,499

  

2,261

  

2,484

  

1,818

  

3,227

  

7,244

  

8,097

Regulatory settlement

-

  

-

  

-

  

-

  

-

  

-

  

10,277

Other

29,294

  

29,802

  

29,369

  

33,994

  

30,371

  

88,465

  

94,501

        Total noninterest expense

126,903

  

127,553

  

127,109

  

130,519

  

128,317

  

381,565

  

397,390

        Income before income taxes

59,118

  

57,055

  

57,371

  

55,843

  

55,946

  

173,544

  

140,601

Income tax expense

19,590

  

19,166

  

19,278

  

18,173

  

18,129

  

58,034

  

45,543

        Net income

$    39,528

  

$   37,889

  

$     38,093

  

$    37,670

  

$   37,817

  

$ 115,510

  

$  95,058
                           

Net income per share: Basic

$       0.43

  

$       0.41

  

$        0.41

  

$       0.40

  

$       0.40

  

$      1.26

  

$      1.01

                                     Diluted

$       0.43

  

$       0.41

  

$        0.41

  

$       0.40

  

$       0.40

  

$      1.25

  

$      1.00

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)
                   
 

Quarter Ended
 

Sep-17

  

Jun-17

  

Mar-17

  

Dec-16

  

Sep-16

LOAN AND LEASE PORTFOLIO:

                  

Commercial and industrial

$  1,506,352

  

$   1,566,459

  

$   1,536,527

  

$    1,612,295

  

$  1,616,152

Real estate

                  

   Consumer mortgages

2,826,333

  

2,776,213

  

2,675,672

  

2,643,966

  

2,611,387

   Home equity

626,961

  

624,868

  

626,488

  

628,846

  

622,566

   Agricultural

247,211

  

245,646

  

240,534

  

245,377

  

242,171

   Commercial and industrial-owner occupied

1,835,430

  

1,795,321

  

1,801,613

  

1,764,265

  

1,668,477

   Construction, acquisition and development

1,175,979

  

1,156,901

  

1,136,827

  

1,157,248

  

1,121,386

   Commercial real estate

2,336,219

  

2,341,633

  

2,271,542

  

2,237,719

  

2,240,717

Credit cards

104,613

  

104,169

  

103,813

  

109,656

  

107,447

All other

396,411

  

407,330

  

408,678

  

412,619

  

428,458

     Total loans

$ 11,055,509

  

$ 11,018,540

  

$ 10,801,694

  

$  10,811,991

  

$ 10,658,761
                   

ALLOWANCE FOR CREDIT LOSSES:

                  

Balance, beginning of period

$     121,561

  

$      125,196

  

$     123,736

  

$       125,887

  

$     126,935
                   

Loans and leases charged-off:

                  

Commercial and industrial

(1,963)

  

(3,773)

  

(384)

  

(2,483)

  

(1,180)

Real estate

                  

   Consumer mortgages

(1,193)

  

(522)

  

(596)

  

(905)

  

(595)

   Home equity

(439)

  

(125)

  

(459)

  

(873)

  

(237)

   Agricultural

(54)

  

(6)

  

(44)

  

-

  

(89)

   Commercial and industrial-owner occupied

(20)

  

(1,460)

  

(404)

  

(20)

  

(261)

   Construction, acquisition and development

(29)

  

(54)

  

(30)

  

(10)

  

(5)

   Commercial real estate

(49)

  

(1)

  

(19)

  

-

  

(14)

Credit cards

(745)

  

(781)

  

(838)

  

(815)

  

(696)

All other

(711)

  

(591)

  

(559)

  

(580)

  

(713)

     Total loans charged-off

(5,203)

  

(7,313)

  

(3,333)

  

(5,686)

  

(3,790)
                   

Recoveries:

                  

Commercial and industrial

481

  

1,034

  

490

  

1,019

  

263

Real estate

                  

   Consumer mortgages

642

  

339

  

625

  

413

  

327

   Home equity

378

  

110

  

356

  

71

  

109

   Agricultural

77

  

34

  

41

  

15

  

28

   Commercial and industrial-owner occupied

285

  

481

  

193

  

201

  

117

   Construction, acquisition and development

260

  

208

  

1,324

  

195

  

382

   Commercial real estate

151

  

75

  

69

  

176

  

1,043

Credit cards

177

  

205

  

249

  

208

  

262

All other

187

  

192

  

446

  

237

  

211

     Total recoveries

2,638

  

2,678

  

3,793

  

2,535

  

2,742
                   

Net (charge-offs) recoveries

(2,565)

  

(4,635)

  

460

  

(3,151)

  

(1,048)
                   

Provision charged to operating expense

500

  

1,000

  

1,000

  

1,000

  

-

Balance, end of period

$     119,496

  

$      121,561

  

$     125,196

  

$       123,736

  

$     125,887
                   

Average loans for period

$ 11,013,270

  

$ 10,883,102

  

$ 10,820,486

  

$ 10,737,802

  

$ 10,601,481
                   

Ratio:

                  

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

0.09%

  

0.17%

  

(0.02%)

  

0.12%

  

0.04%

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)
                   
 

Quarter Ended
 

Sep-17

  

Jun-17

  

Mar-17

  

Dec-16

  

Sep-16

NON-PERFORMING ASSETS

                  

NON-PERFORMING LOANS AND LEASES:

                  

  Nonaccrual Loans and Leases

                  

    Commercial and industrial

$      8,776

  

$         9,988

  

$       13,959

  

$    13,679

  

$       11,659

    Real estate

                  

       Consumer mortgages

23,635

  

24,690

  

21,543

  

21,084

  

20,196

       Home equity

2,555

  

3,183

  

3,157

  

3,817

  

3,721

       Agricultural

5,919

  

6,172

  

5,180

  

1,546

  

1,194

       Commercial and industrial-owner occupied

7,558

  

10,215

  

15,135

  

10,791

  

11,983

       Construction, acquisition and development

1,771

  

2,223

  

1,466

  

7,022

  

6,939

       Commercial real estate

4,645

  

6,418

  

13,638

  

13,402

  

14,793

    Credit cards

126

  

122

  

87

  

161

  

121

    All other

811

  

574

  

274

  

310

  

119

         Total nonaccrual loans and leases

$    55,796

  

$       63,585

  

$       74,439

  

$    71,812

  

$       70,725
                   

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

1,855

  

1,793

  

3,063

  

3,983

  

2,255

  Restructured Loans and Leases, Still Accruing

7,366

  

6,303

  

4,060

  

26,047

  

17,936

     Total non-performing loans and leases

65,017

  

71,681

  

81,562

  

101,842

  

90,916
                   

OTHER REAL ESTATE OWNED:

5,956

  

7,704

  

8,458

  

7,810

  

11,391
                   

Total Non-performing Assets

$    70,973

  

$       79,385

  

$       90,020

  

$  109,652

  

$      102,307
                   

Additions to Nonaccrual Loans and Leases During the Quarter

$    16,975

  

$       17,020

  

$       23,348

  

$    16,007

  

$       17,319
                   

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

                  

    Commercial and industrial

$      3,791

  

$         3,304

  

$         4,083

  

$      3,449

  

$         6,736

    Real estate

                  

       Consumer mortgages

18,603

  

12,395

  

10,149

  

14,490

  

15,443

       Home equity

2,042

  

2,590

  

1,720

  

3,072

  

3,854

       Agricultural

476

  

197

  

364

  

1,283

  

616

       Commercial and industrial-owner occupied

4,453

  

2,228

  

1,949

  

2,120

  

1,712

       Construction, acquisition and development

4,464

  

2,639

  

3,306

  

1,344

  

1,272

       Commercial real estate

1,206

  

1,183

  

2,631

  

653

  

15,221

    Credit cards

720

  

705

  

800

  

726

  

774

    All other

699

  

1,203

  

776

  

673

  

1,089

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

$    36,454

  

$       26,444

  

$       25,778

  

$    27,810

  

$       46,717
                   

Credit Quality Ratios:

                  

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

0.02%

  

0.04%

  

0.04%

  

0.04%

  

0.00%

Allowance for credit losses to net loans and leases

1.08%

  

1.10%

  

1.16%

  

1.14%

  

1.18%

Allowance for credit losses to non-performing loans and leases

183.79%

  

169.59%

  

153.50%

  

121.50%

  

138.47%

Allowance for credit losses to non-performing assets

168.37%

  

153.13%

  

139.08%

  

112.84%

  

123.05%

Non-performing loans and leases to net loans and leases

0.59%

  

0.65%

  

0.76%

  

0.94%

  

0.85%

Non-performing assets to net loans and leases

0.64%

  

0.72%

  

0.83%

  

1.01%

  

0.96%

 

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)
                           
 

September 30, 2017
     

Special

                    
 

Pass

  

Mention

  

Substandard

  

Doubtful

  

Loss

  

Impaired

  

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

                          

Commercial and industrial

$  1,449,512

  

$            762

  

$       50,633

  

$        290

  

$            146

  

$    5,009

  

$   1,506,352

Real estate

                          

   Consumer mortgages

2,768,161

  

-

  

55,836

  

272

  

-

  

2,064

  

2,826,333

   Home equity

617,463

  

-

  

8,731

  

-

  

-

  

767

  

626,961

   Agricultural

234,563

  

-

  

7,372

  

-

  

-

  

5,276

  

247,211

   Commercial and industrial-owner occupied

1,766,055

  

2,920

  

62,232

  

-

  

-

  

4,223

  

1,835,430

   Construction, acquisition and development

1,159,359

  

3,718

  

12,902

  

-

  

-

  

-

  

1,175,979

   Commercial real estate

2,293,845

  

-

  

39,805

  

177

  

-

  

2,392

  

2,336,219

Credit cards

104,613

  

-

  

-

  

-

  

-

  

-

  

104,613

All other

392,100

  

-

  

4,211

  

100

  

-

  

-

  

396,411

     Total loans

$ 10,785,671

  

$         7,400

  

$      241,722

  

$        839

  

$            146

  

$  19,731

  

$ 11,055,509
                           
                           
 

June 30, 2017
     

Special

                    
 

Pass

  

Mention

  

Substandard

  

Doubtful

  

Loss

  

Impaired

  

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

                          

Commercial and industrial

$  1,516,992

  

$                -

  

$       41,604

  

$        301

  

$                -

  

$    7,562

  

$   1,566,459

Real estate

                          

   Consumer mortgages

2,710,161

  

-

  

63,352

  

276

  

-

  

2,424

  

2,776,213

   Home equity

613,216

  

-

  

10,802

  

-

  

-

  

850

  

624,868

   Agricultural

225,504

  

8,157

  

6,740

  

-

  

-

  

5,245

  

245,646

   Commercial and industrial-owner occupied

1,734,306

  

3,161

  

50,644

  

-

  

-

  

7,210

  

1,795,321

   Construction, acquisition and development

1,136,104

  

6,253

  

14,298

  

-

  

-

  

246

  

1,156,901

   Commercial real estate

2,299,529

  

-

  

37,214

  

169

  

-

  

4,721

  

2,341,633

Credit cards

104,169

  

-

  

-

  

-

  

-

  

-

  

104,169

All other

400,191

  

-

  

6,900

  

239

  

-

  

-

  

407,330

     Total loans

$ 10,740,172

  

$       17,571

  

$      231,554

  

$        985

  

$                -

  

$  28,258

  

$ 11,018,540

 

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)
                                   
 

September 30, 2017
 

Alabama

                                
 

and Florida

                                
 

Panhandle

  

Arkansas

  

Louisiana

  

Mississippi

  

Missouri

  

Tennessee

  

Texas

  

Other

  

Total

LOAN AND LEASE PORTFOLIO:

                                  

Commercial and industrial

$   136,368

  

$   195,461

  

$   193,882

  

$   551,391

  

$     70,856

  

$   108,389

  

$   200,118

  

$     49,887

  

$  1,506,352

Real estate

                                  

   Consumer mortgages

379,388

  

327,113

  

233,715

  

879,524

  

92,807

  

316,209

  

543,855

  

53,722

  

2,826,333

   Home equity

96,418

  

47,361

  

70,916

  

230,493

  

21,531

  

139,521

  

19,348

  

1,373

  

626,961

   Agricultural

8,298

  

83,830

  

25,290

  

66,829

  

7,205

  

13,019

  

42,722

  

18

  

247,211

   Commercial and industrial-owner occupied

210,503

  

203,249

  

223,947

  

710,693

  

46,384

  

154,354

  

286,300

  

-

  

1,835,430

   Construction, acquisition and development

126,581

  

75,400

  

57,445

  

355,559

  

20,391

  

164,014

  

376,589

  

-

  

1,175,979

   Commercial real estate

300,226

  

357,712

  

236,589

  

574,667

  

209,097

  

212,296

  

445,632

  

-

  

2,336,219

Credit cards

-

  

-

  

-

  

-

  

-

  

-

  

-

  

104,613

  

104,613

All other

52,154

  

40,023

  

22,141

  

210,898

  

2,969

  

22,066

  

39,332

  

6,828

  

396,411

     Total loans

$ 1,309,936

  

$ 1,330,149

  

$ 1,063,925

  

$3,580,054

  

$   471,240

  

$ 1,129,868

  

$ 1,953,896

  

$   216,441

  

$ 11,055,509
                                   

NON-PERFORMING LOANS AND LEASES:

                                  

Commercial and industrial

$         652

  

$         951

  

$         405

  

$      4,346

  

$         689

  

$         105

  

$       2,104

  

$         635

  

$        9,887

Real estate

                                  

   Consumer mortgages

1,309

  

4,600

  

1,785

  

11,863

  

262

  

1,805

  

3,644

  

399

  

25,667

   Home equity

540

  

723

  

694

  

501

  

79

  

110

  

-

  

2

  

2,649

   Agricultural

-

  

237

  

204

  

5,512

  

-

  

-

  

15

  

-

  

5,968

   Commercial and industrial-owner occupied

855

  

2,519

  

1,098

  

3,927

  

1,019

  

1,011

  

694

  

-

  

11,123

   Construction, acquisition and development

42

  

719

  

267

  

784

  

-

  

-

  

99

  

-

  

1,911

   Commercial real estate

984

  

1,004

  

328

  

2,932

  

-

  

-

  

299

  

-

  

5,547

Credit cards

-

  

-

  

-

  

-

  

-

  

-

  

-

  

1,398

  

1,398

All other

14

  

-

  

7

  

645

  

-

  

196

  

5

  

-

  

867

     Total loans

$       4,396

  

$     10,753

  

$       4,788

  

$    30,510

  

$       2,049

  

$       3,227

  

$       6,860

  

$       2,434

  

$       65,017
                                   

NON-PERFORMING LOANS AND LEASES

                                  

   AS A PERCENTAGE OF OUTSTANDING:

                                  

Commercial and industrial

0.48%

  

0.49%

  

0.21%

  

0.79%

  

0.97%

  

0.10%

  

1.05%

  

1.27%

  

0.66%

Real estate

                                  

   Consumer mortgages

0.35%

  

1.41%

  

0.76%

  

1.35%

  

0.28%

  

0.57%

  

0.67%

  

0.74%

  

0.91%

   Home equity

0.56%

  

1.53%

  

0.98%

  

0.22%

  

0.37%

  

0.08%

  

0.00%

  

0.15%

  

0.42%

   Agricultural

0.00%

  

0.28%

  

0.81%

  

8.25%

  

0.00%

  

0.00%

  

0.04%

  

0.00%

  

2.41%

   Commercial and industrial-owner occupied

0.41%

  

1.24%

  

0.49%

  

0.55%

  

2.20%

  

0.65%

  

0.24%

  

N/A

  

0.61%

   Construction, acquisition and development

0.03%

  

0.95%

  

0.46%

  

0.22%

  

0.00%

  

0.00%

  

0.03%

  

N/A

  

0.16%

   Commercial real estate

0.33%

  

0.28%

  

0.14%

  

0.51%

  

0.00%

  

0.00%

  

0.07%

  

N/A

  

0.24%

Credit cards

N/A

  

N/A

  

N/A

  

N/A

  

N/A

  

N/A

  

N/A

  

1.34%

  

1.34%

All other

0.03%

  

0.00%

  

0.03%

  

0.31%

  

0.00%

  

0.89%

  

0.01%

  

0.00%

  

0.22%

     Total loans

0.34%

  

0.81%

  

0.45%

  

0.85%

  

0.43%

  

0.29%

  

0.35%

  

1.12%

  

0.59%

 

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)
                           
 

Quarter Ended

  

Year to Date
 

Sep-17

  

Jun-17

  

Mar-17

  

Dec-16

  

Sep-16

  

Sep-17

  

Sep-16

NONINTEREST REVENUE:

                          

Mortgage banking excl. MSR and MSR Hedge market value adj

$      6,955

  

$         7,643

  

$         8,056

  

$      5,561

  

$         9,274

  

$  22,654

  

$  31,036

MSR and MSR Hedge market value adjustment

(46)

  

(1,509)

  

934

  

11,242

  

1,813

  

(621)

  

(10,233)

Credit card, debit card and merchant fees

9,346

  

9,565

  

8,903

  

9,262

  

9,292

  

27,814

  

27,748

Deposit service charges

10,388

  

9,706

  

9,689

  

9,956

  

11,313

  

29,783

  

33,345

Securities gains, net

5

  

23

  

1,071

  

39

  

1

  

1,099

  

89

Insurance commissions

28,616

  

31,126

  

32,940

  

25,709

  

28,194

  

92,682

  

90,246

Trust income

3,803

  

3,679

  

3,561

  

3,874

  

3,641

  

11,043

  

10,564

Annuity fees

246

  

264

  

349

  

257

  

446

  

859

  

1,388

Brokerage commissions and fees

1,337

  

1,332

  

1,264

  

1,270

  

1,225

  

3,933

  

3,816

Bank-owned life insurance

2,700

  

1,710

  

1,669

  

2,104

  

1,775

  

6,079

  

5,481

Other miscellaneous income

2,610

  

4,591

  

2,433

  

2,701

  

2,699

  

9,634

  

9,446

     Total noninterest revenue

$    65,960

  

$       68,130

  

$       70,869

  

$    71,975

  

$       69,673

  

$ 204,959

  

$ 202,926
                           

NONINTEREST EXPENSE:

                          

Salaries and employee benefits

$    81,415

  

$       81,597

  

$       81,386

  

$    80,850

  

$       80,884

  

$ 244,398

  

$ 243,238

Occupancy, net of rental income

10,343

  

10,455

  

10,302

  

10,294

  

10,412

  

31,100

  

30,794

Equipment

3,352

  

3,438

  

3,568

  

3,563

  

3,423

  

10,358

  

10,483

Deposit insurance assessments

2,499

  

2,261

  

2,484

  

1,818

  

3,227

  

7,244

  

8,097

Regulatory settlement

-

  

-

  

-

  

-

  

-

  

-

  

10,277

Advertising

1,185

  

1,037

  

663

  

2,443

  

925

  

2,885

  

2,601

Foreclosed property expense

447

  

960

  

1,050

  

1,005

  

859

  

2,457

  

3,349

Telecommunications

1,192

  

1,233

  

1,147

  

1,245

  

1,288

  

3,572

  

3,842

Public relations

675

  

654

  

720

  

716

  

718

  

2,049

  

1,978

Data processing

6,942

  

7,230

  

6,623

  

6,903

  

6,856

  

20,795

  

19,932

Computer software

3,074

  

2,913

  

2,981

  

3,013

  

2,976

  

8,968

  

8,368

Amortization of intangibles

994

  

1,010

  

1,030

  

963

  

923

  

3,034

  

2,672

Legal

1,016

  

1,330

  

1,229

  

1,190

  

1,064

  

3,575

  

7,353

Merger expense

-

  

-

  

-

  

-

  

-

  

-

  

2

Postage and shipping

1,050

  

1,080

  

1,175

  

1,075

  

1,059

  

3,305

  

3,161

Other miscellaneous expense

12,719

  

12,355

  

12,751

  

15,441

  

13,703

  

37,825

  

41,243

     Total noninterest expense

$  126,903

  

$      127,553

  

$      127,109

  

$  130,519

  

$      128,317

  

$ 381,565

  

$ 397,390
                           

INSURANCE COMMISSIONS:

                          

Property and casualty commissions

$    21,086

  

$       22,363

  

$       19,755

  

$    19,098

  

$       20,927

  

63,204

  

$  61,221

Life and health commissions

6,134

  

6,623

  

6,465

  

5,757

  

5,897

  

19,222

  

17,764

Risk management income

703

  

600

  

648

  

610

  

674

  

1,951

  

1,889

Other

693

  

1,540

  

6,072

  

244

  

696

  

8,305

  

9,372

     Total insurance commissions

$    28,616

  

$       31,126

  

$       32,940

  

$    25,709

  

$       28,194

  

$  92,682

  

$  90,246

 

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)
                   
 

Quarter Ended
 

Sep-17

  

Jun-17

  

Mar-17

  

Dec-16

  

Sep-16

MORTGAGE SERVICING RIGHTS:

                  

Fair value, beginning of period

$     65,491

  

$       67,161

  

$       65,263

  

$     51,930

  

$       48,108

Additions to mortgage servicing rights:

                  

   Originations of servicing assets

3,393

  

2,772

  

2,866

  

4,022

  

4,349

Changes in fair value:

                  

   Due to payoffs/paydowns

(2,502)

  

(2,825)

  

(1,876)

  

(2,447)

  

(2,338)

   Due to change in valuation inputs or

                  

     assumptions used in the valuation model

36

  

(1,616)

  

909

  

11,759

  

1,813

   Other changes in fair value

(1)

  

(1)

  

(1)

  

(1)

  

(2)

Fair value, end of period

$     66,417

  

$       65,491

  

$       67,161

  

$     65,263

  

$       51,930
                   

MORTGAGE BANKING REVENUE:

                  

Production revenue:

                  

   Origination

$       4,809

  

$         5,771

  

$         5,117

  

$       3,335

  

$         6,973

   Servicing

4,648

  

4,697

  

4,815

  

4,673

  

4,639

   Payoffs/Paydowns

(2,502)

  

(2,825)

  

(1,876)

  

(2,447)

  

(2,338)

     Total production revenue

6,955

  

7,643

  

8,056

  

5,561

  

9,274

Market value adjustment on MSR

36

  

(1,616)

  

909

  

11,759

  

1,813

Market value adjustment on MSR Hedge

(82)

  

107

  

25

  

(517)

  

-

Total mortgage lending revenue

$       6,909

  

$         6,134

  

$         8,990

  

$     16,803

  

$       11,087
                   
                   
                   

Mortgage loans serviced

$ 6,506,550

  

$   6,431,273

  

$   6,429,617

  

$ 6,384,649

  

$   6,285,027

MSR/mtg loans serviced

1.02%

  

1.02%

  

1.04%

  

1.01%

  

0.83%
                   

AVAILABLE-FOR-SALE SECURITIES, at fair value

                  

U.S. Government agencies

$ 1,687,186

  

$   1,713,374

  

$   1,818,180

  

$ 1,789,427

  

$   1,691,866

Government agency issued residential

                  

   mortgage-back securities

157,891

  

159,246

  

167,542

  

176,243

  

184,095

Government agency issued commercial

                  

   mortgage-back securities

153,509

  

170,642

  

170,082

  

172,279

  

178,826

Obligations of states and political subdivisions

328,314

  

345,130

  

352,324

  

360,005

  

384,996

Other

33,067

  

32,903

  

32,759

  

33,722

  

28,416

Total available-for-sale securities

$ 2,359,967

  

$   2,421,295

  

$   2,540,887

  

$ 2,531,676

  

$   2,468,199

 

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(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 net operating income, net operating income-excluding MSR, total operating expense, tangible shareholders' equity to tangible assets, return on tangible equity, operating return on tangible equity-excluding MSR,  operating return on average assets-excluding MSR, operating return on average shareholders' equity-excluding MSR, tangible book value per share, operating earnings per share, operating earnings per share-excluding MSR, efficiency ratio (tax equivalent) and operating efficiency ratio-excluding MSR (tax equivalent).  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 capital position and 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 Net Operating Income and Net Operating Income-Excluding MSR to Net Income:

            
                               
     

Quarter ended

  

Year to Date
     

9/30/2017

  

6/30/2017

  

3/31/2017

  

12/31/2016

  

9/30/2016

  

9/30/2017

  

9/30/2016
                               

Net income

  

$      39,528

  

$   37,889

  

$          38,093

  

$          37,670

  

$          37,817

  

$         115,510

  

$         95,058

Plus:

Merger expense, net of tax

  

-

  

-

  

-

  

-

  

-

  

-

  

2
 

Regulatory related charges, net of tax

  

-

  

-

  

-

  

-

  

-

  

-

  

9,412

Less:

Security gains, net of tax

  

3

  

14

  

664

  

25

  

-

  

681

  

55

Net operating income

  

$      39,525

  

$   37,875

  

$          37,429

  

$          37,645

  

$          37,817

  

$         114,829

  

$       104,417
                               

Less:

MSR market value adjustment, net of tax

(28)

  

(936)

  

579

  

6,970

  

1,124

  

(385)

  

(6,344)

Net operating income-excluding MSR

  

$      39,553

  

$   38,811

  

$          36,850

  

$          30,675

  

$          36,693

  

$         115,214

  

$       110,761
                               
                               

Reconciliation of Total Operating Expense to Total Noninterest Expense:

                    
                               

Total noninterest expense

  

$    126,903

  

$ 127,553

  

$        127,109

  

$         130,519

  

$         128,317

  

$         381,565

  

$       397,390

Less:

Merger expense

  

-

  

-

  

-

  

-

  

-

  

-

  

2
 

Regulatory related charges

  

-

  

-

  

-

  

-

  

-

  

-

  

13,777

Total operating expense

  

$    126,903

  

$ 127,553

  

$        127,109

  

$         130,519

  

$         128,317

  

$         381,565

  

$       383,611

 

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(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

  

Year to Date
     

9/30/2017

  

6/30/2017

  

3/31/2017

  

12/31/2016

  

9/30/2016

  

9/30/017

  

9/30/2016

Tangible assets

                            

Total assets

  

$ 14,760,394

  

$  14,843,130

  

$  14,866,054

  

$ 14,724,388

  

$  14,611,483

  

$ 14,760,394

  

$ 14,611,483

Less:  

Goodwill

  

300,798

  

300,798

  

300,798

  

300,798

  

294,901

  

300,798

  

294,901
 

Other identifiable intangible assets

  

18,860

  

19,854

  

20,865

  

21,894

  

19,908

  

18,860

  

19,908

Total tangible assets

  

$ 14,440,736

  

$  14,522,478

  

$  14,544,391

  

$ 14,401,696

  

$  14,296,674

  

$ 14,440,736

  

$ 14,296,674
                               

Tangible shareholders' equity

                            

Total shareholders' equity

  

$   1,700,502

  

$    1,691,832

  

$    1,702,389

  

$   1,723,883

  

$    1,724,104

  

$   1,700,502

  

$   1,724,104

Less:

Goodwill

  

300,798

  

300,798

  

300,798

  

300,798

  

294,901

  

300,798

  

294,901
 

Other identifiable intangible assets

  

18,860

  

19,854

  

20,865

  

21,894

  

19,908

  

18,860

  

19,908

Total tangible shareholders' equity

  

$   1,380,844

  

$    1,371,180

  

$    1,380,726

  

$   1,401,191

  

$    1,409,295

  

$   1,380,844

  

$   1,409,295
                               

Total average assets

  

$ 14,710,245

  

$  14,741,811

  

$  14,832,260

  

$ 14,655,360

  

$  14,366,759

  

$ 14,760,991

  

$ 14,083,108

Total shares of common stock outstanding

  

90,329,896

  

91,022,729

  

92,344,409

  

93,696,687

  

94,074,740

  

90,329,896

  

94,074,740

Average shares outstanding-diluted

  

91,099,770

  

91,530,552

  

93,829,400

  

93,966,392

  

94,563,833

  

92,157,392

  

94,617,389
                               

Tangible shareholders' equity to tangible assets (1)

  

9.56%

  

9.44%

  

9.49%

  

9.73%

  

9.86%

  

9.56%

  

9.86%

Return on tangible equity (2)

  

11.36%

  

11.08%

  

11.19%

  

10.70%

  

10.68%

  

11.18%

  

9.01%

Operating return on tangible equity-excluding MSR (3)

  

11.36%

  

11.35%

  

10.82%

  

8.71%

  

10.36%

  

11.16%

  

10.50%

Operating return on average assets-excluding MSR (4)

  

1.07%

  

1.06%

  

1.01%

  

0.83%

  

1.02%

  

1.04%

  

1.05%

Operating return on average shareholders' equity-excluding MSR (5)

9.25%

  

9.27%

  

8.63%

  

7.08%

  

8.49%

  

9.05%

  

8.74%

Tangible book value per share (6)

  

$         15.29

  

$          15.06

  

$          14.95

  

$         14.95

  

$         14.98

  

$         15.29

  

$         14.98

Operating earnings per share (7)

  

$           0.43

  

$            0.41

  

$            0.40

  

$           0.40

  

$           0.40

  

$           1.25

  

$           1.10

Operating earnings per share-excluding MSR (8)

  

$           0.43

  

$            0.42

  

$            0.39

  

$           0.33

  

$           0.39

  

$           1.25

  

$           1.17
                               
                               

(1)

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.
                               

(2)

Return on tangible equity is defined by the Company as annualized net income divided by tangible shareholders' equity.
                               

(3)

Operating return on tangible equity-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by tangible shareholders' equity.
                               

(4)

Operating return on average assets-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by total average assets.
                               

(5)

Operating return on average shareholders' equity-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by average shareholders' equity.
                               

(6)

Tangible book value per share is defined by the Company as tangible shareholders' equity divided by total shares of common stock outstanding.
                               

(7)

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

(8)

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

Efficiency Ratio (tax equivalent) and Operating Efficiency Ratio-excluding MSR (tax equivalent) Definitions

The efficiency ratio (tax equivalent) and the operating efficiency ratio-excluding MSR (tax equivalent) are supplemental financial measures utilized in management's internal evaluation of the Company's use of resources and are not defined under GAAP. The efficiency ratio (tax equivalent) is calculated by dividing total noninterest expense by total revenue, which includes net interest income plus noninterest income plus the tax equivalent adjustment.  The operating efficiency ratio-excluding MSR (tax equivalent) excludes expense items otherwise disclosed as non-operating from total noninterest expense.  In addition, the MSR valuation adjustment as well as securities gains and losses are excluded from total revenue.  

 

 

SOURCE BancorpSouth, Inc.

For further information: John G. Copeland, Senior Executive Vice President and Chief Financial Officer, 662/680-2536; Will Fisackerly, Senior Vice President and Director of Corporate Finance, 662/680-2475