TUPELO, Miss., April 17, 2019 /PRNewswire/ -- BancorpSouth Bank (NYSE: BXS) (the "Company") today announced financial results for the quarter ended March 31, 2019.
Highlights for the first quarter of 2019 included:
- Reported quarterly net income of $51.6 million, or $0.52 per diluted share.
- Earnings were impacted by a negative pre-tax mortgage servicing rights ("MSR") valuation adjustment of $4.9 million.
- Net operating income – excluding MSR – of $55.9 million, or $0.56 per diluted share, which represents an increase of 3.7 percent on a per share basis, compared with the first quarter of 2018.
- Net interest margin – excluding accretable yield – increased to 3.74 percent, compared with 3.71 percent for the fourth quarter of 2018.
- Continued strong credit quality reflected by provision for credit losses of $0.5 million for the quarter; improvement in non-performing and classified asset levels.
- Reported balance sheet growth of 7% on an annualized basis including deposit growth of $623 million, or 18% on an annualized basis, while loans were essentially flat.
- Announced the signing of definitive merger agreements with Van Alstyne Financial Corporation, the parent company of Texas Star Bank, and Summit Financial Enterprises, Inc., the parent company of Summit Bank, National Association.
- Repurchased 1.0 million shares of outstanding common stock at a weighted average price of $27.60 per share.
- Completed the acquisitions of Casey Bancorp, Inc., the parent company of Grand Bank of Texas, and Merchants Trust, Inc., the parent company of Merchants Bank, effective April 1, 2019, which will collectively add over $400 million in loans and over $500 million in deposits to the Company's presence in Texas and Alabama in the second quarter.
The Company reported net income of $51.6 million, or $0.52 per diluted share, for the first quarter of 2019, compared with net income of $53.5 million, or $0.54 per diluted share, for the first quarter of 2018 and net income of $47.1 million, or $0.47 per diluted share, for the fourth quarter of 2018. The Company reported net operating income – excluding MSR – of $55.9 million, or $0.56 per diluted share, for the first quarter of 2019, compared with $53.6 million, or $0.54 per diluted share, for the first quarter of 2018 and $56.4 million, or $0.57 per diluted share, for the fourth quarter of 2018.
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 recognized securities gains and losses, MSR valuation adjustments, restructuring charges, merger-related expenses, and other one-time charges.
"As we look at our successes for the first quarter, we are excited about the recent transaction announcements with Texas Star Bank and Summit Bank," remarked Dan Rollins, BancorpSouth Chairman and Chief Executive Officer. "The addition of Texas Star Bank will significantly enhance our presence in the Dallas-Forth Worth, Texas CMSA while the Summit Bank transaction will provide us with additional scale in the Florida Panhandle. We look forward to these two great banks joining our Company during the second half of 2019. As we look at our financial results for the quarter, we noted several key accomplishments despite the adverse impact of the MSR adjustment on earnings. We reported continued expansion in our net interest margin – excluding accretable yield – which increased to 3.74 percent for the first quarter from 3.71 percent for the fourth quarter of 2018. Consistent with historical seasonal trends, we saw meaningful deposit growth while loans were essentially flat for the quarter. Total deposit growth was $623 million, or 18 percent on an annualized basis. Given the pullback in the market, we repurchased one million shares of stock during the quarter at a weighted average price of $27.60 per share, most of which occurred during the latter part of the quarter."
"Finally, we are pleased to have recently completed our mergers with Grand Bank of Texas and Merchants Bank. Mike Casey and his team will bolster our efforts to expand in the Dallas and Texas Hill Country markets while Joe Bedwell, Jim Reid, and their team will help us further our penetration in Mobile, Alabama while also allowing us to enter new markets in surrounding counties. We anticipate completing the operational integration of these banks during the second quarter of this year."
Net Interest Revenue
Net interest revenue was $152.6 million for the first quarter of 2019, an increase of 10.5 percent from $138.1 million for the first quarter of 2018 and a decrease of 0.2 percent from $152.9 million for the fourth quarter of 2018. The fully taxable equivalent net interest margin was 3.86 percent for the first quarter of 2019, compared with 3.67 percent for the first quarter of 2018 and 3.80 percent for the fourth quarter of 2018. Yields on net loans and leases were 5.09 percent for the first quarter of 2019, compared with 4.60 percent for the first quarter of 2018 and 4.94 percent for the fourth quarter of 2018, while yields on total interest earning assets were 4.57 percent for the first quarter of 2019, compared with 4.05 percent for the first quarter of 2018 and 4.45 percent for the fourth quarter of 2018. The net interest margin, excluding accretable yield, was 3.74 percent for the first quarter of 2019, compared with 3.60 percent for the first quarter of 2018 and 3.71 percent for the fourth quarter of 2018 while yields on net loans and leases, excluding accretable yield, were 4.95 percent for the first quarter of 2019, compared with 4.51 percent for the first quarter of 2018 and 4.83 percent for the fourth quarter of 2018. The average cost of deposits was 0.63 percent for the first quarter of 2019, compared with 0.31 percent for the first quarter of 2018 and 0.52 percent for the fourth quarter of 2018.
Asset, Deposit and Loan Activity
Total assets were $18.3 billion at March 31, 2019, compared with $17.2 billion at March 31, 2018. Loans and leases, net of unearned income, were $13.1 billion at March 31, 2019, compared with $12.3 billion at March 31, 2018. Total deposits were $14.7 billion at March 31, 2019, compared with $13.9 billion at March 31, 2018. These balance sheet comparisons include the impact of the acquisition of Icon Capital Corporation, which closed effective October 1, 2018. Balance sheet totals for Icon Capital Corporation at the time of closing are disclosed in the "Transactions" section of this news release.
Provision for Credit Losses and Allowance for Credit Losses
Earnings for the first quarter of 2019 reflect a provision for credit losses of $0.5 million, compared with a provision of $1.0 million for both the first and fourth quarters of 2018. Net charge-offs for the first quarter of 2019 were $4.1 million, compared with net recoveries of $0.2 million for the first quarter of 2018 and net charge-offs of $1.9 million for the fourth quarter of 2018. The allowance for credit losses was $116.5 million, or 0.89 percent of net loans and leases, at March 31, 2019, compared with $119.4 million, or 0.97 percent of net loans and leases, at March 31, 2018 and $120.1 million, or 0.92 percent of net loans and leases, at December 31, 2018. The allowance for credit losses coverage metrics were impacted by loans acquired in the acquisition that closed during the fourth quarter of 2018.
Total non-performing assets were $97.0 million, or 0.74 percent of net loans and leases, at March 31, 2019, compared with $90.9 million, or 0.74 percent of net loans and leases, at March 31, 2018, and $106.0 million, or 0.81 percent of net loans and leases, at December 31, 2018. Other real estate owned was $9.7 million at March 31, 2019, compared with $9.4 million at March 31, 2018 and $9.3 million at December 31, 2018.
Noninterest Revenue
Noninterest revenue was $64.2 million for the first quarter of 2019, compared with $78.9 million for the first quarter of 2018 and $59.0 million for the fourth quarter of 2018. These results include a negative MSR valuation adjustment of $4.9 million for the first quarter of 2019, compared with a positive MSR valuation adjustment of $5.5 million for the first quarter of 2018 and a negative MSR valuation adjustment of $8.1 million for the fourth quarter of 2018. Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.
Excluding the MSR valuation adjustment, mortgage banking revenue was $6.9 million for the first quarter of 2019, compared with $7.7 million for the first quarter of 2018 and $4.8 million for the fourth quarter of 2018. Mortgage origination volume for the first quarter of 2019 was $291.7 million, compared with $291.9 million for the first quarter of 2018 and $305.0 million for the fourth quarter of 2018. Of the total mortgage origination volume for the first quarter of 2019, $54.1 million was portfolio loans, compared with $61.0 million for the first quarter of 2018 and $47.3 million for the fourth quarter of 2018.
Credit card, debit card, and merchant fee revenue was $8.9 million for the first quarter of 2019, compared with $9.6 million for the first quarter of 2018 and $9.9 million for the fourth quarter of 2018. Deposit service charge revenue was $10.8 million for the first quarter of 2019, compared with $10.9 million for the first quarter of 2018 and $11.7 million for the fourth quarter of 2018. Wealth management revenue was $5.6 million for the first quarter of 2019, compared with $5.7 million for the first quarter of 2018 and $5.5 million for the fourth quarter of 2018. Other noninterest revenue was $6.7 million for the first quarter of 2019, compared with $10.4 million for the first quarter of 2018 and $7.0 million for the fourth quarter of 2018. Insurance commission revenue was $30.2 million for the first quarter of 2019, compared with $29.1 million for the first quarter of 2018 and $28.0 million for the fourth quarter of 2018.
Noninterest Expense
Noninterest expense for the first quarter of 2019 was $150.0 million, compared with $147.7 million for the first quarter of 2018 and $152.3 million for the fourth quarter of 2018. Salaries and employee benefits expense was $97.2 million for the first quarter of 2019, compared with $91.2 million for the first quarter of 2018 and $92.0 million for the fourth quarter of 2018. Occupancy expense was $11.6 million for the first quarter of 2019, compared with $10.8 million for the first quarter of 2018 and $12.1 million for the fourth quarter of 2018. Other noninterest expense was $34.6 million for the first quarter of 2019, compared with $39.6 million for the first quarter of 2018 and $42.5 million for the fourth quarter of 2018. Additionally, merger-related expense for the first quarter of 2019 was $0.9 million, compared with merger-related expense of $5.7 million for the first quarter of 2018 and $4.5 million for the fourth quarter of 2018.
Capital Management
The Company's equity capitalization is comprised entirely of common stock. The Company's ratio of shareholders' equity to assets was 12.16 percent at March 31, 2019, compared with 11.99 percent at March 31, 2018 and 12.25 percent at December 31, 2018. The ratio of tangible shareholders' equity to tangible assets was 8.41 percent at March 31, 2019, compared with 8.69 percent at March 31, 2018 and 8.46 percent at December 31, 2018.
During the first quarter of 2019, the Company repurchased 1,000,000 shares of its outstanding common stock at a weighted average price of $27.60 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 fourth quarter of 2018, the Company repurchased 2,973,416 shares of its outstanding common stock at a weighted average price of $30.22 per share, which completed the previous authorization. As of March 31, 2019, the Company had 2,000,000 remaining shares available for repurchase under its current share repurchase authorization, which expires on December 31, 2019.
Estimated regulatory capital ratios at March 31, 2019 were calculated in accordance with the Basel III capital framework. The Company is a "well capitalized" bank, as defined by federal regulations, at March 31, 2019, with Tier 1 risk-based capital of 10.79 percent and total risk-based capital of 11.60 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification.
Summary
Rollins concluded, "We are off to a great start through the first three months of 2019. Our financial performance reflects many of the same trends that we've talked about for some time now. We saw continued improvement in our core net interest margin while our credit quality trends remained very stable. We also continue to manage total operating expenses in a very tight range. Finally, we are pleased with our ability to execute on our strategic plan. The transactions with Merchants Bank and Grand Bank were closed in less than five months from the announcement date. In addition, we announced two additional transactions with Texas Star Bank and Summit Bank in March. We are excited about the additional value that each of these four banks will add to our Company as we continue to expand, particularly in higher growth markets."
TRANSACTIONS
Van Alstyne Financial Corporation
On March 5, 2019, the Company announced the signing of a definitive merger agreement ("Texas Star Merger Agreement") with Van Alstyne Financial Corporation and its wholly owned subsidiary, Texas Star Bank, (collectively referred to as "Texas Star"), pursuant to which Texas Star agreed to be merged with and into the Company (the "Texas Star Merger"). Texas Star operates 7 full-service banking offices in Collin and Grayson counties in Texas, and one loan production office in Durant, Oklahoma. As of March 31, 2019, Texas Star, on a consolidated basis, reported total assets of $380.9 million, total loans of $330.8 million and total deposits of $331.3 million. Under the terms of the Texas Star Merger Agreement, the Company expects to issue approximately 2,100,000 shares of the Company's common stock plus $20.5 million in cash for all outstanding shares of Van Alstyne Financial Corporation's capital stock. For more information regarding the Texas Star Merger, see our Current Report on Form 8-K that was filed with the Federal Deposit Insurance Corporation ("FDIC") on March 5, 2019. The Texas Star Merger Agreement has been unanimously approved by the Boards of Directors of both the Company and Texas Star. Texas Star has agreed to convene a meeting of its shareholders to vote upon the approval of the Texas Star Merger Agreement. Subject to the satisfaction of all closing conditions, including the receipt of all required regulatory approvals, the Texas Star Merger is expected to be completed during the second half of 2019, although the Company can provide no assurance that the Texas Star Merger will close during this time period or at all.
Summit Financial Enterprises, Inc.
On March 5, 2019, the Company announced the signing of a definitive merger agreement (the "Summit Merger Agreement") with Summit Financial Enterprises, Inc. and its wholly owned subsidiary, Summit Bank, (collectively referred to as "Summit"), pursuant to which Summit agreed to be merged with and into the Company (the "Summit Merger"). Summit operates 4 offices located in Panama City, Panama City Beach, Fort Walton Beach, and Pensacola, Florida. As of March 31, 2019, Summit, on a consolidated basis, reported total assets of $519.4 million, total loans of $277.1 million and total deposits of $449.2 million. Under the terms of the Summit Merger Agreement, the Company expects to issue approximately 2,500,000 shares of the Company's common stock plus $20.0 million in cash for all outstanding shares of Summit Financial Enterprises, Inc.'s capital stock. For more information regarding the Summit Merger, see our Current Report on Form 8-K that was filed with the FDIC on March 5, 2019. The Summit Merger Agreement has been unanimously approved by the Boards of Directors of both the Company and Summit. Summit has agreed to convene a meeting of its shareholders to vote upon the approval of the Summit Merger Agreement. Subject to the satisfaction of all closing conditions, including the receipt of all required regulatory approvals, the Summit Merger is expected to be completed during the second half of 2019, although the Company can provide no assurance that the Summit Merger will close during this time period or at all.
Casey Bancorp, Inc.
On April 1, 2019, the Company completed the merger with Casey Bancorp, Inc. and its wholly owned subsidiary, Grand Bank of Texas, (collectively referred to as "Grand Bank"), pursuant to which Grand Bank was merged with and into the Company (the "Grand Bank Merger"). Grand Bank operated 4 full-service banking offices in the cities of Dallas, Grand Prairie, Horseshoe Bay and Marble Falls, all in Texas. As of April 1, 2019, Grand Bank, on a consolidated basis, reported total assets of $341.0 million, total loans of $261.0 million and total deposits of $324.0 million. Under the terms of the definitive merger agreement, the Company issued approximately 1,275,000 shares of the Company's common stock plus $14.6 million in cash for all outstanding shares of Casey Bancorp, Inc.'s capital stock. For more information regarding the Grand Bank Merger, see our Current Report on Form 8-K that was filed with the FDIC on April 1, 2019.
Merchants Trust, Inc.
On April 1, 2019, the Company completed the merger with Merchants Trust, Inc. and its wholly owned subsidiary, Merchants Bank (collectively referred to as "Merchants"), pursuant to which Merchants was merged with and into the Company (the "Merchants Merger"). Merchants, which was based in Jackson, Alabama, operated 6 full-service banking offices in Clarke and Mobile counties in Alabama. As of April 1, 2019, Merchants, on a consolidated basis, reported total assets of $225.0 million, total loans of $154.0 million and total deposits of $205.0 million. Under the terms of the definitive merger agreement, the Company issued approximately 950,000 shares of the Company's common stock plus $9.6 million in cash for all outstanding shares of Merchants Trust, Inc.'s capital stock. For more information regarding the Merchants Merger, see our Current Report on Form 8-K that was filed with the FDIC on April 1, 2019.
Icon Capital Corporation
Effective October 1, 2018, the Company completed the merger with Icon Capital Corporation and its wholly owned subsidiary, Icon Bank of Texas, National Association (collectively referred to as "Icon"), pursuant to which Icon was merged with and into the Company (the "Icon Merger"). Icon was headquartered in Houston, Texas and operated 7 full-service banking offices in the Houston, Texas metropolitan area. As of October 1, 2018, Icon, on a consolidated basis, reported total assets of $760.4 million, total loans of $650.4 million and total deposits of $675.8 million. Under the terms of the definitive merger agreement, the Company issued approximately 4,125,000 shares of the Company's common stock plus $17.5 million in cash, $7 million of which was placed in a separate non-interest bearing escrow account that is to be paid if certain conditions are met, as described in the Current Report on Form 8-K filed with the FDIC on October 1, 2018, for all outstanding shares of Icon Capital Corporation's capital stock. For more information regarding the Icon Merger, see our Current Report on Form 8-K that was filed with the FDIC on October 1, 2018. The purchase accounting for this transaction is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies.
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 22 of this news release.
Conference Call and Webcast
The Company will conduct a conference call to discuss its first quarter 2019 financial results on April 18, 2019, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing www.BancorpSouth.investorroom.com/Webcasts. The webcast will also be available in archived format at the same address.
About BancorpSouth Bank
BancorpSouth Bank (NYSE: BXS) is headquartered in Tupelo, Mississippi, with approximately $19 billion in assets. BancorpSouth operates approximately 295 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 benefits, costs, synergies and financial and operational impact of the Icon, Grand Bank, Merchants, Texas Star and Summit Mergers (referred to collectively as the "Mergers") on the Company, the acceptance by customers of Icon, Grand Bank, Merchants, Texas Star and Summit of the Company's products and services after the closing of the Mergers, the opportunities to enhance market share in certain markets and market acceptance of the Company generally in new markets, 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"), the impact of the Tax Cuts and Jobs Act of 2017 on the Company and its operations and financial performance, 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, dispositions and other strategic growth opportunities and initiatives 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 to meet expectations regarding the benefits, costs, synergies, and financial and operational impact of the Icon, Grand Bank, Merchants, Texas Star and Summit Mergers, the possibility that any of the anticipated benefits, costs, synergies and financial and operational improvements of the Icon, Grand Bank, Merchants, Texas Star and Summit Mergers will not be realized or will not be realized as expected, the ability of the Company and Texas Star and Summit to complete the Texas Star Merger and Summit Merger, the ability of the Company and Texas Star and Summit to satisfy the conditions to the completion of the Texas Star Merger and Summit Merger, including the approval of the merger transaction by Texas Star and Summit shareholders and the receipt of all regulatory approvals required for the Texas Star Merger and Summit Merger on the terms expected in the Texas Star Merger Agreement and the Summit Merger Agreement, the ability of the Company and Texas Star and Summit to meet expectations regarding the timing, completion and accounting and tax treatments of the Texas Star Merger and Summit Merger, the possibility that any of the anticipated benefits of the Texas Star Merger and Summit Merger will not be realized or will not be realized as expected, the failure of the Texas Star Merger or Summit Merger to close for any other reason, the effect of any announcements regarding the Texas Star Merger or Summit Merger on the Company's operating results, the possibility that the Texas Star Merger and Summit Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events, the lack of availability of the Company's filings mandated by the Exchange Act from the SEC's publicly available website after November 1, 2017, 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 Tax Cuts and Jobs Act of 2017 on the Company and its operations and financial performance, 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, dispositions and other strategic growth opportunities and initiatives, 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 FDIC. 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 Bank |
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Selected Financial Information |
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(Dollars in thousands, except per share data) |
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(Unaudited) |
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Quarter Ended |
Quarter Ended |
Quarter Ended |
Quarter Ended |
Quarter Ended |
|
3/31/2019 |
12/31/2018 |
9/30/2018 |
6/30/2018 |
3/31/2018 |
|
Earnings Summary: |
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Interest revenue |
$ 181,133 |
$ 178,850 |
$ 163,158 |
$ 159,290 |
$ 152,195 |
Interest expense |
28,579 |
25,969 |
21,023 |
17,162 |
14,117 |
Net interest revenue |
152,554 |
152,881 |
142,135 |
142,128 |
138,078 |
Provision for credit losses |
500 |
1,000 |
- |
2,500 |
1,000 |
Net interest revenue, after provision |
|||||
for credit losses |
152,054 |
151,881 |
142,135 |
139,628 |
137,078 |
Noninterest revenue |
64,220 |
59,031 |
71,616 |
72,456 |
78,934 |
Noninterest expense |
149,968 |
152,342 |
142,409 |
145,182 |
147,701 |
Income before income taxes |
66,306 |
58,570 |
71,342 |
66,902 |
68,311 |
Income tax expense |
14,708 |
11,473 |
4,659 |
12,856 |
14,820 |
Net income |
$ 51,598 |
$ 47,097 |
$ 66,683 |
$ 54,046 |
$ 53,491 |
Balance Sheet - Period End Balances |
|||||
Total assets |
$ 18,314,183 |
$ 18,001,540 |
$ 17,249,175 |
$ 17,222,491 |
$ 17,185,772 |
Total earning assets |
16,426,872 |
16,144,098 |
15,594,549 |
15,600,037 |
15,593,366 |
Total securities |
2,692,499 |
2,749,188 |
2,826,359 |
2,828,754 |
2,989,767 |
Loans and leases, net of unearned income |
13,071,059 |
13,112,149 |
12,449,995 |
12,418,114 |
12,296,849 |
Allowance for credit losses |
116,499 |
120,070 |
121,019 |
119,920 |
119,434 |
Net book value of acquired loans (included in loans and leases above) |
1,191,673 |
1,310,089 |
835,939 |
926,996 |
1,076,208 |
Remaining loan mark on acquired loans |
30,782 |
37,366 |
13,368 |
14,485 |
19,330 |
Total deposits |
14,692,609 |
14,069,966 |
13,347,193 |
13,476,558 |
13,894,301 |
Long-term debt |
5,503 |
6,213 |
33,182 |
33,214 |
32,963 |
Total shareholders' equity |
2,226,585 |
2,205,737 |
2,116,375 |
2,072,083 |
2,060,487 |
Balance Sheet - Average Balances |
|||||
Total assets |
$ 18,033,513 |
$ 17,879,081 |
$ 17,059,865 |
$ 17,094,283 |
$ 16,918,568 |
Total earning assets |
16,156,235 |
16,056,656 |
15,465,260 |
15,496,007 |
15,374,336 |
Total securities |
2,704,383 |
2,784,437 |
2,814,751 |
2,906,235 |
2,966,917 |
Loans and leases, net of unearned income |
13,078,221 |
13,063,422 |
12,433,701 |
12,334,756 |
12,084,020 |
Total deposits |
14,445,834 |
14,072,416 |
13,387,849 |
13,539,324 |
13,563,510 |
Long-term debt |
5,826 |
17,403 |
33,196 |
33,147 |
34,433 |
Total shareholders' equity |
2,212,748 |
2,191,852 |
2,089,746 |
2,051,452 |
2,012,639 |
Nonperforming Assets: |
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Non-accrual loans and leases |
$ 68,949 |
$ 70,555 |
$ 55,532 |
$ 60,045 |
$ 65,303 |
Loans and leases 90+ days past due, still accruing |
8,471 |
18,695 |
2,934 |
6,335 |
6,519 |
Restructured loans and leases, still accruing |
9,874 |
7,498 |
7,564 |
6,982 |
9,681 |
Non-performing loans (NPLs) |
87,294 |
96,748 |
66,030 |
73,362 |
81,503 |
Other real estate owned |
9,686 |
9,276 |
4,301 |
7,828 |
9,362 |
Non-performing assets (NPAs) |
$ 96,980 |
$ 106,024 |
$ 70,331 |
$ 81,190 |
$ 90,865 |
Financial Ratios and Other Data: |
|||||
Return on average assets |
1.16% |
1.05% |
1.55% |
1.27% |
1.28% |
Operating return on average assets-excluding MSR* |
1.26% |
1.25% |
1.28% |
1.31% |
1.29% |
Return on average shareholders' equity |
9.46% |
8.52% |
12.66% |
10.57% |
10.78% |
Operating return on average shareholders' equity-excluding MSR* |
10.24% |
10.20% |
10.45% |
10.88% |
10.80% |
Return on tangible equity* |
14.16% |
12.81% |
17.76% |
15.00% |
15.08% |
Operating return on tangible equity-excluding MSR* |
15.34% |
15.33% |
14.66% |
15.44% |
15.11% |
Noninterest income to average assets |
1.44% |
1.31% |
1.67% |
1.70% |
1.89% |
Noninterest expense to average assets |
3.37% |
3.38% |
3.31% |
3.41% |
3.54% |
Net interest margin-fully taxable equivalent |
3.86% |
3.80% |
3.67% |
3.71% |
3.67% |
Net interest margin-fully taxable equivalent, excluding net accretion |
|||||
on acquired loans and leases |
3.74% |
3.71% |
3.62% |
3.63% |
3.60% |
Net interest rate spread |
3.56% |
3.53% |
3.43% |
3.52% |
3.52% |
Efficiency ratio (tax equivalent)* |
68.85% |
71.52% |
66.29% |
67.31% |
67.66% |
Operating efficiency ratio-excluding MSR (tax equivalent)* |
66.89% |
66.86% |
66.34% |
66.36% |
66.79% |
Loan/deposit ratio |
88.96% |
93.19% |
93.28% |
92.15% |
88.50% |
Price to earnings multiple (avg) |
16.60 |
11.67 |
15.07 |
17.07 |
17.77 |
Market value to book value |
125.56% |
118.27% |
152.23% |
156.95% |
153.77% |
Market value to book value (avg) |
132.05% |
131.34% |
158.19% |
159.33% |
159.14% |
Market value to tangible book value |
189.14% |
178.79% |
216.28% |
225.06% |
220.18% |
Market value to tangible book value (avg) |
198.92% |
198.55% |
224.75% |
228.47% |
227.87% |
Employee FTE |
4,370 |
4,445 |
4,270 |
4,366 |
4,305 |
*Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 and 23. |
|||||
Credit Quality Ratios: |
|||||
Net charge-offs(recoveries) to average loans and leases (annualized) |
0.12% |
0.06% |
(0.04%) |
0.07% |
(0.01%) |
Provision for credit losses to average loans and leases (annualized) |
0.02% |
0.03% |
0.00% |
0.08% |
0.03% |
Allowance for credit losses to net loans and leases |
0.89% |
0.92% |
0.97% |
0.97% |
0.97% |
Allowance for credit losses to net loans and leases, excluding acquired loans and leases |
0.98% |
1.02% |
1.04% |
1.05% |
1.07% |
Allowance for credit losses to non-performing loans and leases |
133.46% |
124.11% |
183.28% |
163.46% |
146.54% |
Allowance for credit losses to non-performing assets |
120.13% |
113.25% |
172.07% |
147.70% |
131.44% |
Non-performing loans and leases to net loans and leases |
0.67% |
0.74% |
0.53% |
0.59% |
0.66% |
Non-performing assets to net loans and leases |
0.74% |
0.81% |
0.56% |
0.65% |
0.74% |
Equity Ratios: |
|||||
Total shareholders' equity to total assets |
12.16% |
12.25% |
12.27% |
12.03% |
11.99% |
Tangible shareholders' equity to tangible assets* |
8.41% |
8.46% |
8.96% |
8.71% |
8.69% |
Capital Adequacy: |
|||||
Common Equity Tier 1 capital |
10.79% |
10.84% |
11.71% |
11.42% |
11.30% |
Tier 1 capital |
10.79% |
10.84% |
11.71% |
11.42% |
11.30% |
Total capital |
11.60% |
11.68% |
12.60% |
12.30% |
12.18% |
Tier 1 leverage capital |
9.03% |
9.06% |
9.68% |
9.38% |
9.39% |
Estimated for current quarter |
|||||
Common Share Data: |
|||||
Basic earnings per share |
$ 0.52 |
$ 0.47 |
$ 0.68 |
$ 0.55 |
$ 0.54 |
Diluted earnings per share |
0.52 |
0.47 |
0.67 |
0.55 |
0.54 |
Operating earnings per share* |
0.52 |
0.51 |
0.57 |
0.56 |
0.58 |
Operating earnings per share- excluding MSR* |
0.56 |
0.57 |
0.56 |
0.56 |
0.54 |
Cash dividends per share |
0.17 |
0.17 |
0.17 |
0.14 |
0.14 |
Book value per share |
22.48 |
22.10 |
21.48 |
20.99 |
20.68 |
Tangible book value per share* |
14.92 |
14.62 |
15.12 |
14.64 |
14.44 |
Market value per share (last) |
28.22 |
26.14 |
32.70 |
32.95 |
31.80 |
Market value per share (high) |
33.45 |
33.50 |
35.40 |
35.45 |
35.55 |
Market value per share (low) |
25.76 |
24.31 |
32.45 |
30.60 |
30.90 |
Market value per share (avg) |
29.68 |
29.03 |
33.98 |
33.45 |
32.91 |
Dividend payout ratio |
32.78% |
35.93% |
25.15% |
25.62% |
25.85% |
Total shares outstanding |
99,066,856 |
99,797,271 |
98,525,516 |
98,700,509 |
99,636,779 |
Average shares outstanding - basic |
99,506,952 |
99,541,965 |
98,646,087 |
98,906,619 |
98,765,789 |
Average shares outstanding - diluted |
99,717,119 |
99,720,219 |
98,819,905 |
99,057,054 |
98,942,268 |
Yield/Rate: |
|||||
(Taxable equivalent basis) |
|||||
Loans, loans held for sale, and leases net of unearned income |
5.09% |
4.94% |
4.72% |
4.67% |
4.60% |
Loans, loans held for sale, and leases net of unearned income, excluding |
|||||
net accretion on acquired loans and leases |
4.95% |
4.83% |
4.64% |
4.57% |
4.51% |
Available-for-sale securities: |
|||||
Taxable |
2.04% |
1.92% |
1.80% |
1.77% |
1.72% |
Tax-exempt |
4.63% |
4.47% |
4.40% |
4.39% |
4.30% |
Short-term, FHLB and other equity investments |
2.67% |
2.84% |
2.04% |
2.02% |
1.54% |
Total interest earning assets and revenue |
4.57% |
4.45% |
4.21% |
4.15% |
4.05% |
Deposits |
0.63% |
0.52% |
0.43% |
0.34% |
0.31% |
Demand - interest bearing |
0.85% |
0.70% |
0.59% |
0.43% |
0.36% |
Savings |
0.30% |
0.30% |
0.24% |
0.15% |
0.13% |
Other time |
1.46% |
1.26% |
1.06% |
0.95% |
0.89% |
Short-term borrowings |
2.16% |
2.06% |
1.79% |
1.62% |
1.25% |
Total interest bearing deposits and short-term borrowings |
1.01% |
0.91% |
0.77% |
0.62% |
0.51% |
Junior subordinated debt |
N/A |
N/A |
N/A |
N/A |
0.00% |
Long-term debt |
4.88% |
4.12% |
4.06% |
4.11% |
4.17% |
Total interest bearing liabilities and expense |
1.01% |
0.92% |
0.78% |
0.63% |
0.53% |
Interest bearing liabilities to interest earning assets |
71.15% |
69.79% |
69.12% |
70.27% |
70.91% |
Net interest tax equivalent adjustment |
$ 1,035 |
$ 1,088 |
$ 1,088 |
$ 1,119 |
$ 1,205 |
*Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 22 and 23. |
BancorpSouth Bank |
||||||
Consolidated Balance Sheets |
||||||
(Unaudited) |
||||||
Mar-19 |
Dec-18 |
Sep-18 |
Jun-18 |
Mar-18 |
||
(Dollars in thousands) |
||||||
Assets |
||||||
Cash and due from banks |
$ 207,486 |
$ 239,960 |
$ 169,493 |
$ 198,374 |
$ 180,104 |
|
Interest bearing deposits with other banks |
||||||
and Federal funds sold |
490,667 |
92,476 |
138,677 |
152,566 |
127,345 |
|
Available-for-sale securities, at fair value |
2,692,499 |
2,749,188 |
2,826,359 |
2,828,754 |
2,989,767 |
|
Loans and leases |
13,086,801 |
13,129,012 |
12,464,877 |
12,433,152 |
12,312,346 |
|
Less: Unearned income |
15,742 |
16,863 |
14,882 |
15,038 |
15,497 |
|
Allowance for credit losses |
116,499 |
120,070 |
121,019 |
119,920 |
119,434 |
|
Net loans and leases |
12,954,560 |
12,992,079 |
12,328,976 |
12,298,194 |
12,177,415 |
|
Loans held for sale |
138,379 |
140,300 |
132,080 |
153,396 |
141,979 |
|
Premises and equipment, net |
432,540 |
361,859 |
342,947 |
339,372 |
342,353 |
|
Accrued interest receivable |
59,038 |
57,054 |
56,369 |
51,921 |
52,856 |
|
Goodwill |
699,073 |
695,720 |
590,292 |
588,004 |
580,900 |
|
Other identifiable intangibles |
49,396 |
50,896 |
36,475 |
39,031 |
40,590 |
|
Bank owned life insurance |
305,315 |
308,324 |
304,687 |
306,116 |
304,850 |
|
Other real estate owned |
9,686 |
9,276 |
4,301 |
7,828 |
9,362 |
|
Other assets |
275,544 |
304,408 |
318,519 |
258,935 |
238,251 |
|
Total Assets |
$ 18,314,183 |
$ 18,001,540 |
$ 17,249,175 |
$ 17,222,491 |
$ 17,185,772 |
|
Liabilities |
||||||
Deposits: |
||||||
Demand: Noninterest bearing |
$ 4,201,695 |
$ 4,124,744 |
$ 4,007,158 |
$ 4,135,322 |
$ 4,035,830 |
|
Interest bearing |
6,353,731 |
5,898,851 |
5,535,689 |
5,509,901 |
5,945,359 |
|
Savings |
1,855,024 |
1,836,167 |
1,783,602 |
1,810,149 |
1,843,264 |
|
Other time |
2,282,159 |
2,210,204 |
2,020,744 |
2,021,186 |
2,069,848 |
|
Total deposits |
14,692,609 |
14,069,966 |
13,347,193 |
13,476,558 |
13,894,301 |
|
Securities sold under agreement to repurchase |
481,567 |
416,008 |
403,724 |
407,704 |
469,114 |
|
Federal funds purchased |
||||||
and other short-term borrowing |
630,000 |
1,095,000 |
1,095,000 |
1,025,022 |
500,000 |
|
Accrued interest payable |
9,718 |
8,543 |
7,330 |
5,961 |
5,525 |
|
Long-term debt |
5,503 |
6,213 |
33,182 |
33,214 |
32,963 |
|
Other liabilities |
268,201 |
200,073 |
246,371 |
201,949 |
223,382 |
|
Total Liabilities |
16,087,598 |
15,795,803 |
15,132,800 |
15,150,408 |
15,125,285 |
|
Shareholders' Equity |
||||||
Common stock |
247,667 |
249,493 |
246,314 |
246,751 |
249,092 |
|
Capital surplus |
462,256 |
484,482 |
439,590 |
441,950 |
465,699 |
|
Accumulated other comprehensive loss |
(69,924) |
(80,491) |
(91,650) |
(88,751) |
(85,994) |
|
Retained earnings |
1,586,586 |
1,552,253 |
1,522,121 |
1,472,133 |
1,431,690 |
|
Total Shareholders' Equity |
2,226,585 |
2,205,737 |
2,116,375 |
2,072,083 |
2,060,487 |
|
Total Liabilities & Shareholders' Equity |
$ 18,314,183 |
$ 18,001,540 |
$ 17,249,175 |
$ 17,222,491 |
$ 17,185,772 |
BancorpSouth Bank |
||||||
Consolidated Average Balance Sheets |
||||||
(Unaudited) |
||||||
Mar-19 |
Dec-18 |
Sep-18 |
Jun-18 |
Mar-18 |
||
(Dollars in thousands) |
||||||
Assets |
||||||
Cash and due from banks |
$ 213,415 |
$ 218,553 |
$ 179,098 |
$ 203,220 |
$ 202,141 |
|
Interest bearing deposits with other banks |
||||||
and Federal funds sold |
238,194 |
62,516 |
57,204 |
66,035 |
182,488 |
|
Available-for-sale securities, at fair value |
2,704,383 |
2,784,437 |
2,814,751 |
2,906,235 |
2,966,917 |
|
Loans and leases |
13,094,817 |
13,079,321 |
12,448,814 |
12,350,226 |
12,099,694 |
|
Less: Unearned income |
16,596 |
15,899 |
15,113 |
15,470 |
15,674 |
|
Allowance for credit losses |
118,352 |
120,426 |
120,678 |
119,622 |
118,840 |
|
Net loans and leases |
12,959,869 |
12,942,996 |
12,313,023 |
12,215,134 |
11,965,180 |
|
Loans held for sale |
86,294 |
96,588 |
112,387 |
144,400 |
98,662 |
|
Premises and equipment, net |
430,675 |
372,488 |
340,456 |
342,395 |
343,098 |
|
Accrued interest receivable |
54,296 |
54,156 |
50,437 |
48,767 |
47,770 |
|
Goodwill |
695,787 |
668,544 |
588,777 |
583,188 |
544,840 |
|
Other identifiable intangibles |
50,115 |
47,567 |
37,529 |
39,752 |
17,811 |
|
Bank owned life insurance |
306,134 |
305,888 |
305,476 |
305,016 |
301,982 |
|
Other real estate owned |
9,555 |
15,048 |
6,245 |
8,997 |
9,300 |
|
Other assets |
284,796 |
310,300 |
254,482 |
231,144 |
238,379 |
|
Total Assets |
$ 18,033,513 |
$ 17,879,081 |
$ 17,059,865 |
$ 17,094,283 |
$ 16,918,568 |
|
Liabilities |
||||||
Deposits: |
||||||
Demand: Noninterest bearing |
$ 4,078,027 |
$ 4,284,521 |
$ 4,076,890 |
$ 3,976,039 |
$ 3,822,216 |
|
Interest bearing |
6,283,089 |
5,753,655 |
5,495,517 |
5,697,444 |
5,898,269 |
|
Savings |
1,837,197 |
1,836,148 |
1,794,229 |
1,820,013 |
1,801,128 |
|
Other time |
2,247,521 |
2,198,092 |
2,021,213 |
2,045,828 |
2,041,897 |
|
Total deposits |
14,445,834 |
14,072,416 |
13,387,849 |
13,539,324 |
13,563,510 |
|
Securities sold under agreement to repurchase |
457,875 |
447,727 |
427,583 |
416,839 |
445,840 |
|
Federal funds purchased |
||||||
and other short-term borrowing |
664,056 |
953,137 |
918,153 |
875,641 |
667,546 |
|
Accrued interest payable |
9,998 |
8,305 |
6,617 |
5,600 |
5,177 |
|
Long-term debt |
5,826 |
17,403 |
33,196 |
33,147 |
34,433 |
|
Other liabilities |
237,176 |
188,241 |
196,721 |
172,280 |
189,423 |
|
Total Liabilities |
15,820,765 |
15,687,229 |
14,970,119 |
15,042,831 |
14,905,929 |
|
Shareholders' Equity |
||||||
Common stock |
248,810 |
250,752 |
246,635 |
247,120 |
247,189 |
|
Capital surplus |
475,390 |
497,330 |
441,779 |
444,379 |
447,576 |
|
Accumulated other comprehensive loss |
(78,255) |
(91,541) |
(89,244) |
(88,962) |
(71,205) |
|
Retained earnings |
1,566,803 |
1,535,311 |
1,490,576 |
1,448,915 |
1,389,079 |
|
Total Shareholders' Equity |
2,212,748 |
2,191,852 |
2,089,746 |
2,051,452 |
2,012,639 |
|
Total Liabilities & Shareholders' Equity |
$ 18,033,513 |
$ 17,879,081 |
$ 17,059,865 |
$ 17,094,283 |
$ 16,918,568 |
BancorpSouth Bank |
||||||||||
Consolidated Condensed Statements of Income |
||||||||||
(Dollars in thousands, except per share data) |
||||||||||
(Unaudited) |
||||||||||
Quarter Ended |
||||||||||
Mar-19 |
Dec-18 |
Sep-18 |
Jun-18 |
Mar-18 |
||||||
INTEREST REVENUE: |
||||||||||
Loans and leases |
$ 163,679 |
$ 162,237 |
$ 147,404 |
$ 143,029 |
$ 136,568 |
|||||
Deposits with other banks |
1,516 |
457 |
243 |
331 |
664 |
|||||
Federal funds sold, securities purchased |
||||||||||
under agreement to resell, FHLB and |
||||||||||
other equity investments |
374 |
344 |
295 |
226 |
191 |
|||||
Available-for-sale securities: |
||||||||||
Taxable |
12,437 |
12,208 |
11,529 |
11,554 |
11,313 |
|||||
Tax-exempt |
2,121 |
2,308 |
2,394 |
2,435 |
2,504 |
|||||
Loans held for sale |
1,006 |
1,296 |
1,293 |
1,715 |
955 |
|||||
Total interest revenue |
181,133 |
178,850 |
163,158 |
159,290 |
152,195 |
|||||
INTEREST EXPENSE: |
||||||||||
Interest bearing demand |
13,139 |
10,191 |
8,113 |
6,075 |
5,278 |
|||||
Savings |
1,338 |
1,367 |
1,087 |
667 |
584 |
|||||
Other time |
8,065 |
6,967 |
5,399 |
4,862 |
4,457 |
|||||
Federal funds purchased and securities sold |
||||||||||
under agreement to repurchase |
1,775 |
2,563 |
2,071 |
1,898 |
1,341 |
|||||
Short-term and long-term debt |
4,262 |
4,880 |
4,353 |
3,660 |
2,455 |
|||||
Other |
- |
1 |
- |
- |
2 |
|||||
Total interest expense |
28,579 |
25,969 |
21,023 |
17,162 |
14,117 |
|||||
Net interest revenue |
152,554 |
152,881 |
142,135 |
142,128 |
138,078 |
|||||
Provision for credit losses |
500 |
1,000 |
- |
2,500 |
1,000 |
|||||
Net interest revenue, after provision for |
||||||||||
credit losses |
152,054 |
151,881 |
142,135 |
139,628 |
137,078 |
|||||
NONINTEREST REVENUE: |
||||||||||
Mortgage banking |
2,040 |
(3,275) |
6,517 |
6,904 |
13,265 |
|||||
Credit card, debit card and merchant fees |
8,874 |
9,941 |
9,857 |
10,530 |
9,564 |
|||||
Deposit service charges |
10,766 |
11,699 |
11,278 |
10,767 |
10,901 |
|||||
Security gains(losses), net |
39 |
162 |
(54) |
(2) |
27 |
|||||
Insurance commissions |
30,180 |
27,981 |
31,705 |
32,965 |
29,130 |
|||||
Wealth management |
5,635 |
5,534 |
6,016 |
5,745 |
5,697 |
|||||
Other |
6,686 |
6,989 |
6,297 |
5,547 |
10,350 |
|||||
Total noninterest revenue |
64,220 |
59,031 |
71,616 |
72,456 |
78,934 |
|||||
NONINTEREST EXPENSE: |
||||||||||
Salaries and employee benefits |
97,228 |
92,013 |
89,646 |
91,451 |
91,197 |
|||||
Occupancy, net of rental income |
11,551 |
12,107 |
11,690 |
11,103 |
10,804 |
|||||
Equipment |
3,888 |
3,837 |
3,994 |
3,804 |
3,754 |
|||||
Deposit insurance assessments |
2,740 |
1,866 |
2,954 |
3,129 |
2,360 |
|||||
Other |
34,561 |
42,519 |
34,125 |
35,695 |
39,586 |
|||||
Total noninterest expense |
149,968 |
152,342 |
142,409 |
145,182 |
147,701 |
|||||
Income before income taxes |
66,306 |
58,570 |
71,342 |
66,902 |
68,311 |
|||||
Income tax expense |
14,708 |
11,473 |
4,659 |
12,856 |
14,820 |
|||||
Net income |
$ 51,598 |
$ 47,097 |
$ 66,683 |
$ 54,046 |
$ 53,491 |
|||||
Net income per share: Basic |
$ 0.52 |
$ 0.47 |
$ 0.68 |
$ 0.55 |
$ 0.54 |
|||||
Diluted |
$ 0.52 |
$ 0.47 |
$ 0.67 |
$ 0.55 |
$ 0.54 |
BancorpSouth Bank |
|||||||||
Selected Loan Data |
|||||||||
(Dollars in thousands) |
|||||||||
(Unaudited) |
|||||||||
Quarter Ended |
|||||||||
Mar-19 |
Dec-18 |
Sep-18 |
Jun-18 |
Mar-18 |
|||||
LOAN AND LEASE PORTFOLIO: |
|||||||||
Commercial and industrial |
1,728,897 |
$ 1,766,515 |
$ 1,617,293 |
$ 1,668,174 |
$ 1,695,718 |
||||
Real estate |
|||||||||
Consumer mortgages |
3,242,769 |
3,259,390 |
3,184,674 |
3,143,215 |
3,000,479 |
||||
Home equity |
663,120 |
663,572 |
655,213 |
653,450 |
655,634 |
||||
Agricultural |
309,931 |
318,038 |
315,842 |
315,828 |
313,470 |
||||
Commercial and industrial-owner occupied |
2,128,763 |
2,267,902 |
2,157,177 |
2,147,176 |
2,102,493 |
||||
Construction, acquisition and development |
1,322,671 |
1,286,786 |
1,103,532 |
1,346,370 |
1,377,153 |
||||
Commercial real estate |
3,169,117 |
3,026,214 |
2,923,791 |
2,636,533 |
2,640,503 |
||||
Credit cards |
99,260 |
105,569 |
102,353 |
102,790 |
102,114 |
||||
All other |
406,531 |
418,163 |
390,120 |
404,578 |
409,285 |
||||
Total loans |
$ 13,071,059 |
$ 13,112,149 |
$ 12,449,995 |
$ 12,418,114 |
$ 12,296,849 |
||||
ALLOWANCE FOR CREDIT LOSSES: |
|||||||||
Balance, beginning of period |
$ 120,070 |
$ 121,019 |
$ 119,920 |
$ 119,434 |
$ 118,200 |
||||
Loans and leases charged-off: |
|||||||||
Commercial and industrial |
(819) |
(1,042) |
(322) |
(1,057) |
(484) |
||||
Real estate |
|||||||||
Consumer mortgages |
(185) |
(298) |
(210) |
(366) |
(134) |
||||
Home equity |
(353) |
(237) |
(227) |
(107) |
(143) |
||||
Agricultural |
- |
(6) |
(6) |
(6) |
(12) |
||||
Commercial and industrial-owner occupied |
- |
(237) |
(315) |
(279) |
(41) |
||||
Construction, acquisition and development |
- |
(142) |
(41) |
(66) |
(163) |
||||
Commercial real estate |
(3,815) |
(594) |
- |
(946) |
(35) |
||||
Credit cards |
(955) |
(816) |
(596) |
(830) |
(794) |
||||
All other |
(831) |
(761) |
(941) |
(551) |
(725) |
||||
Total loans charged-off |
(6,958) |
(4,133) |
(2,658) |
(4,208) |
(2,531) |
||||
Recoveries: |
|||||||||
Commercial and industrial |
360 |
504 |
1,558 |
684 |
372 |
||||
Real estate |
|||||||||
Consumer mortgages |
1,081 |
419 |
522 |
361 |
95 |
||||
Home equity |
75 |
86 |
58 |
72 |
333 |
||||
Agricultural |
4 |
304 |
20 |
10 |
79 |
||||
Commercial and industrial-owner occupied |
100 |
40 |
413 |
46 |
80 |
||||
Construction, acquisition and development |
714 |
197 |
564 |
308 |
1,262 |
||||
Commercial real estate |
78 |
139 |
200 |
149 |
53 |
||||
Credit cards |
218 |
245 |
198 |
367 |
220 |
||||
All other |
257 |
250 |
224 |
197 |
271 |
||||
Total recoveries |
2,887 |
2,184 |
3,757 |
2,194 |
2,765 |
||||
Net (charge-offs) recoveries |
(4,071) |
(1,949) |
1,099 |
(2,014) |
234 |
||||
Provision charged to operating expense |
500 |
1,000 |
- |
2,500 |
1,000 |
||||
Balance, end of period |
$ 116,499 |
$ 120,070 |
$ 121,019 |
$ 119,920 |
$ 119,434 |
||||
Average loans for period |
$ 13,078,221 |
$ 13,063,422 |
$ 12,433,701 |
$ 12,334,756 |
$ 12,084,020 |
||||
Ratio: |
|||||||||
Net charge-offs(recoveries) to average loans (annualized) |
0.12% |
0.06% |
(0.04%) |
0.07% |
(0.01%) |
BancorpSouth Bank |
|||||||||
Selected Loan Data |
|||||||||
(Dollars in thousands) |
|||||||||
(Unaudited) |
|||||||||
Quarter Ended |
|||||||||
Mar-19 |
Dec-18 |
Sep-18 |
Jun-18 |
Mar-18 |
|||||
NON-PERFORMING ASSETS |
|||||||||
NON-PERFORMING LOANS AND LEASES: |
|||||||||
Nonaccrual Loans and Leases |
|||||||||
Commercial and industrial |
$ 10,431 |
$ 10,537 |
$ 11,158 |
$ 11,090 |
$ 11,122 |
||||
Real estate |
|||||||||
Consumer mortgages |
25,680 |
23,932 |
23,015 |
22,588 |
26,832 |
||||
Home equity |
2,259 |
2,686 |
2,349 |
2,446 |
2,587 |
||||
Agricultural |
6,263 |
4,617 |
1,603 |
1,536 |
6,225 |
||||
Commercial and industrial-owner occupied |
8,782 |
8,637 |
7,927 |
12,275 |
12,210 |
||||
Construction, acquisition and development |
2,710 |
3,124 |
1,410 |
1,563 |
2,223 |
||||
Commercial real estate |
12,283 |
16,590 |
7,787 |
8,265 |
3,597 |
||||
Credit cards |
160 |
173 |
120 |
104 |
136 |
||||
All other |
381 |
259 |
163 |
178 |
371 |
||||
Total nonaccrual loans and leases |
$ 68,949 |
$ 70,555 |
$ 55,532 |
$ 60,045 |
$ 65,303 |
||||
Loans and Leases 90+ Days Past Due, Still Accruing: |
8,471 |
18,695 |
2,934 |
6,335 |
6,519 |
||||
Restructured Loans and Leases, Still Accruing |
9,874 |
7,498 |
7,564 |
6,982 |
9,681 |
||||
Total non-performing loans and leases |
$ 87,294 |
$ 96,748 |
$ 66,030 |
$ 73,362 |
$ 81,503 |
||||
OTHER REAL ESTATE OWNED: |
9,686 |
9,276 |
4,301 |
7,828 |
9,362 |
||||
Total Non-performing Assets |
$ 96,980 |
$ 106,024 |
$ 70,331 |
$ 81,190 |
$ 90,865 |
||||
BXS originated assets |
$ 77,110 |
$ 72,527 |
$ 66,062 |
$ 75,980 |
$ 84,586 |
||||
Assets acquired during 2018 |
19,870 |
33,497 |
4,269 |
5,210 |
6,279 |
||||
Total Non-performing Assets |
$ 96,980 |
$ 106,024 |
$ 70,331 |
$ 81,190 |
$ 90,865 |
||||
Additions to Nonaccrual Loans and Leases During the Quarter |
$ 15,419 |
$ 28,572 |
$ 12,217 |
$ 16,902 |
$ 16,641 |
||||
Loans and Leases 30-89 Days Past Due, Still Accruing: |
|||||||||
BXS originated loans |
$ 34,591 |
$ 43,922 |
$ 33,093 |
$ 27,225 |
$ 29,422 |
||||
Loans acquired during 2018 |
10,840 |
9,769 |
11,294 |
11,810 |
3,425 |
||||
Total Loans and Leases 30-89 days past due, still accruing |
$ 45,431 |
$ 53,691 |
$ 44,387 |
$ 39,035 |
$ 32,847 |
||||
Credit Quality Ratios: |
|||||||||
Provision for credit losses to average loans and leases (annualized) |
0.02% |
0.03% |
0.00% |
0.08% |
0.03% |
||||
Allowance for credit losses to net loans and leases |
0.89% |
0.92% |
0.97% |
0.97% |
0.97% |
||||
Allowance for credit losses to non-performing loans and leases |
133.46% |
124.11% |
183.28% |
163.46% |
146.54% |
||||
Allowance for credit losses to non-performing assets |
120.13% |
113.25% |
172.07% |
147.70% |
131.44% |
||||
Non-performing loans and leases to net loans and leases |
0.67% |
0.74% |
0.53% |
0.59% |
0.66% |
||||
Non-performing assets to net loans and leases |
0.74% |
0.81% |
0.56% |
0.65% |
0.74% |
BancorpSouth Bank |
|||||||||
Selected Loan Data |
|||||||||
(Dollars in thousands) |
|||||||||
(Unaudited) |
|||||||||
March 31, 2019 |
|||||||||
Special |
Purchased |
||||||||
Pass |
Mention |
Substandard |
Doubtful |
Loss |
Impaired |
Credit Impaired |
Total |
||
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE: |
|||||||||
Commercial and industrial |
$ 1,667,040 |
$ - |
$ 45,639 |
$ 407 |
$ - |
$ 5,598 |
$ 10,213 |
$ 1,728,897 |
|
Real estate |
|||||||||
Consumer mortgages |
3,183,452 |
- |
54,091 |
379 |
- |
4,847 |
- |
3,242,769 |
|
Home equity |
655,726 |
- |
7,171 |
- |
- |
223 |
- |
663,120 |
|
Agricultural |
296,177 |
- |
9,806 |
- |
- |
1,594 |
2,354 |
309,931 |
|
Commercial and industrial-owner occupied |
2,067,541 |
- |
53,467 |
- |
- |
3,422 |
4,333 |
2,128,763 |
|
Construction, acquisition and development |
1,292,434 |
534 |
23,889 |
- |
- |
- |
5,814 |
1,322,671 |
|
Commercial real estate |
3,096,319 |
- |
62,937 |
- |
- |
9,861 |
- |
3,169,117 |
|
Credit cards |
99,260 |
- |
- |
- |
- |
- |
- |
99,260 |
|
All other |
399,393 |
- |
7,138 |
- |
- |
- |
- |
406,531 |
|
Total loans |
$ 12,757,342 |
$ 534 |
$ 264,138 |
$ 786 |
$ - |
$ 25,545 |
$ 22,714 |
$ 13,071,059 |
|
BXS originated loans |
$ 11,537,493 |
$ 534 |
$ 205,512 |
$ 786 |
$ - |
$ 25,545 |
$ - |
$ 11,769,870 |
|
Loans acquired during 2018 |
1,219,849 |
- |
58,626 |
- |
- |
- |
22,714 |
1,301,189 |
|
Total Loans |
$ 12,757,342 |
$ 534 |
$ 264,138 |
$ 786 |
$ - |
$ 25,545 |
$ 22,714 |
$ 13,071,059 |
|
December 31, 2018 |
|||||||||
Special |
Purchased |
||||||||
Pass |
Mention |
Substandard |
Doubtful |
Loss |
Impaired |
Credit Impaired |
Total |
||
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE: |
|||||||||
Commercial and industrial |
$ 1,700,639 |
$ - |
$ 50,174 |
$ 361 |
$ - |
$ 5,263 |
$ 10,078 |
$ 1,766,515 |
|
Real estate |
|||||||||
Consumer mortgages |
3,197,333 |
- |
57,660 |
383 |
- |
3,560 |
454 |
3,259,390 |
|
Home equity |
656,435 |
- |
6,911 |
- |
- |
226 |
- |
663,572 |
|
Agricultural |
303,035 |
- |
12,248 |
- |
- |
184 |
2,571 |
318,038 |
|
Commercial and industrial-owner occupied |
2,181,778 |
- |
77,941 |
- |
- |
3,551 |
4,632 |
2,267,902 |
|
Construction, acquisition and development |
1,248,823 |
- |
32,021 |
- |
- |
- |
5,942 |
1,286,786 |
|
Commercial real estate |
2,944,036 |
- |
68,615 |
- |
- |
13,563 |
- |
3,026,214 |
|
Credit cards |
105,569 |
- |
- |
- |
- |
- |
- |
105,569 |
|
All other |
412,095 |
- |
6,068 |
- |
- |
- |
- |
418,163 |
|
Total loans |
$ 12,749,743 |
$ - |
$ 311,638 |
$ 744 |
$ - |
$ 26,347 |
$ 23,677 |
$ 13,112,149 |
|
BXS originated loans |
$ 11,415,919 |
$ - |
$ 230,627 |
$ 744 |
$ - |
$ 26,347 |
$ - |
$ 11,673,637 |
|
Loans acquired during 2018 |
1,333,824 |
- |
81,011 |
- |
- |
- |
23,677 |
1,438,512 |
|
Total Loans |
$ 12,749,743 |
$ - |
$ 311,638 |
$ 744 |
$ - |
$ 26,347 |
$ 23,677 |
$ 13,112,149 |
BancorpSouth Bank |
|||||||||
Geographical Information |
|||||||||
(Dollars in thousands) |
|||||||||
(Unaudited) |
|||||||||
March 31, 2019 |
|||||||||
Alabama |
|||||||||
and Florida |
|||||||||
Panhandle |
Arkansas |
Louisiana |
Mississippi |
Missouri |
Tennessee |
Texas |
Other |
Total |
|
LOAN AND LEASE PORTFOLIO: |
|||||||||
Commercial and industrial |
$ 107,849 |
$ 134,217 |
$ 279,971 |
$ 571,164 |
$ 75,330 |
$ 96,737 |
$ 438,733 |
$ 24,896 |
$ 1,728,897 |
Real estate |
|||||||||
Consumer mortgages |
455,363 |
336,318 |
334,993 |
882,495 |
91,083 |
322,987 |
759,641 |
59,889 |
3,242,769 |
Home equity |
102,371 |
47,044 |
91,444 |
234,765 |
19,219 |
144,165 |
24,112 |
- |
663,120 |
Agricultural |
9,091 |
82,731 |
35,127 |
69,008 |
6,411 |
12,293 |
95,260 |
10 |
309,931 |
Commercial and industrial-owner occupied |
199,702 |
210,794 |
303,963 |
684,504 |
52,019 |
139,580 |
538,201 |
- |
2,128,763 |
Construction, acquisition and development |
117,580 |
55,240 |
89,374 |
244,148 |
20,284 |
170,364 |
625,681 |
- |
1,322,671 |
Commercial real estate |
266,576 |
369,857 |
369,337 |
727,690 |
201,378 |
217,449 |
1,015,812 |
1,018 |
3,169,117 |
Credit cards |
- |
- |
- |
- |
- |
- |
- |
99,260 |
99,260 |
All other |
43,036 |
38,563 |
24,973 |
182,213 |
3,945 |
18,513 |
89,734 |
5,554 |
406,531 |
Total loans |
$ 1,301,568 |
$ 1,274,764 |
$ 1,529,182 |
$ 3,595,987 |
$ 469,669 |
$ 1,122,088 |
$ 3,587,174 |
$ 190,627 |
$ 13,071,059 |
NON-PERFORMING LOANS AND LEASES: |
|||||||||
Commercial and industrial |
$ 399 |
$ 279 |
704 |
$ 3,678 |
$ 951 |
$ 968 |
$ 5,653 |
$ 430 |
$ 13,062 |
Real estate |
|||||||||
Consumer mortgages |
2,508 |
3,105 |
5,753 |
12,633 |
233 |
2,291 |
3,502 |
102 |
30,127 |
Home equity |
383 |
34 |
168 |
774 |
230 |
742 |
47 |
- |
2,378 |
Agricultural |
50 |
835 |
182 |
1,694 |
- |
- |
3,806 |
- |
6,567 |
Commercial and industrial-owner occupied |
240 |
399 |
1,606 |
3,340 |
- |
868 |
8,758 |
- |
15,211 |
Construction, acquisition and development |
191 |
238 |
105 |
727 |
- |
86 |
1,390 |
- |
2,737 |
Commercial real estate |
100 |
467 |
3,498 |
851 |
- |
- |
10,594 |
- |
15,510 |
Credit cards |
- |
- |
- |
- |
- |
- |
- |
1,191 |
1,191 |
All other |
1 |
139 |
1 |
84 |
- |
132 |
151 |
3 |
511 |
Total loans |
$ 3,872 |
$ 5,496 |
$ 12,017 |
$ 23,781 |
$ 1,414 |
$ 5,087 |
$ 33,901 |
$ 1,726 |
$ 87,294 |
NON-PERFORMING LOANS AND LEASES |
|||||||||
AS A PERCENTAGE OF OUTSTANDING: |
|||||||||
Commercial and industrial |
0.37% |
0.21% |
0.25% |
0.64% |
1.26% |
1.00% |
1.29% |
1.73% |
0.76% |
Real estate |
|||||||||
Consumer mortgages |
0.55% |
0.92% |
1.72% |
1.43% |
0.26% |
0.71% |
0.46% |
0.17% |
0.93% |
Home equity |
0.37% |
0.07% |
0.18% |
0.33% |
1.20% |
0.51% |
0.19% |
N/A |
0.36% |
Agricultural |
0.55% |
1.01% |
0.52% |
2.45% |
0.00% |
0.00% |
4.00% |
0.00% |
2.12% |
Commercial and industrial-owner occupied |
0.12% |
0.19% |
0.53% |
0.49% |
0.00% |
0.62% |
1.63% |
N/A |
0.71% |
Construction, acquisition and development |
0.16% |
0.43% |
0.12% |
0.30% |
0.00% |
0.05% |
0.22% |
N/A |
0.21% |
Commercial real estate |
0.04% |
0.13% |
0.95% |
0.12% |
0.00% |
0.00% |
1.04% |
0.00% |
0.49% |
Credit cards |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
1.20% |
1.20% |
All other |
0.00% |
0.36% |
0.00% |
0.05% |
0.00% |
0.71% |
0.17% |
0.05% |
0.13% |
Total loans |
0.30% |
0.43% |
0.79% |
0.66% |
0.30% |
0.45% |
0.95% |
0.91% |
0.67% |
BancorpSouth Bank |
||||
Acquired Loan Information |
||||
(Dollars in thousands) |
||||
(Unaudited) |
||||
Quarter Ended March 31, 2019 |
||||
Acquired Loans |
Acquired Loans |
Total Acquired |
||
Net book value of acquired loans at beginning of period |
$ 1,279,296 |
$ 30,793 |
$ 1,310,089 |
|
Fair value of loans acquired during the period |
- |
- |
- |
|
Changes in acquired loans |
(110,337) |
(8,079) |
(118,416) |
|
Net book value of acquired loans at end of period |
$ 1,168,959 |
$ 22,714 |
$ 1,191,673 |
|
Loan mark on acquired loans at beginning of period |
$ (13,819) |
$ (23,547) |
$ (37,366) |
|
Loan mark recorded on loans acquired during the period |
- |
- |
- |
|
Change in remaining nonaccretable difference (for ASC 310-30 loans only) |
- |
1,997 |
1,997 |
|
Net accretion recognized on acquired loans |
2,570 |
2,017 |
4,587 |
|
Remaining loan mark on acquired loans* |
$ (11,249) |
$ (19,533) |
$ (30,782) |
|
Quarter Ended December 31, 2018 |
||||
Acquired Loans |
Acquired Loans |
Total Acquired |
||
Net book value of acquired loans at beginning of period |
$ 830,831 |
$ 5,108 |
$ 835,939 |
|
Fair value of loans acquired during the period |
597,609 |
26,134 |
623,743 |
|
Changes in acquired loans |
(149,144) |
(449) |
(149,593) |
|
Net book value of acquired loans at end of period |
$ 1,279,296 |
$ 30,793 |
$ 1,310,089 |
|
Loan mark on acquired loans at beginning of period |
$ (9,414) |
$ (3,954) |
$ (13,368) |
|
Loan mark recorded on loans acquired during the period |
(8,059) |
(20,662) |
(28,721) |
|
Change in remaining nonaccretable difference (for ASC 310-30 loans only) |
- |
545 |
545 |
|
Net accretion recognized on acquired loans |
3,654 |
524 |
4,178 |
|
Remaining loan mark on acquired loans |
$ (13,819) |
$ (23,547) |
$ (37,366) |
|
Quarter Ended |
Quarter Ended |
Quarter Ended |
||
3/31/2019 |
12/31/2018 |
9/30/2018 |
||
Loan yield, as reported |
5.09% |
4.94% |
4.72% |
|
Loan yield, excluding net accretion on acquired loans |
4.95% |
4.83% |
4.64% |
|
Net interest margin, as reported |
3.86% |
3.80% |
3.67% |
|
Net interest margin, excluding net accretion on acquired loans |
3.74% |
3.71% |
3.62% |
|
Certain balances within the Acquired Loan Information have been adjusted for prior periods to reflect changes made to loans accounted for under ASC |
||||
* The remaining loan mark shown above for loans accounted for under ASC 310-30 includes $1.1 million in accretable yield as of March 31, 2019 |
BancorpSouth Bank |
|||||||||
Noninterest Revenue and Expense |
|||||||||
(Dollars in thousands) |
|||||||||
(Unaudited) |
|||||||||
Quarter Ended |
|||||||||
Mar-19 |
Dec-18 |
Sep-18 |
Jun-18 |
Mar-18 |
|||||
NONINTEREST REVENUE: |
|||||||||
Mortgage banking excl. MSR and MSR Hedge market value adj |
$ 6,909 |
$ 4,789 |
$ 5,045 |
$ 7,105 |
$ 7,732 |
||||
MSR and MSR Hedge market value adjustment |
(4,869) |
(8,064) |
1,472 |
(201) |
5,533 |
||||
Credit card, debit card and merchant fees |
8,874 |
9,941 |
9,857 |
10,530 |
9,564 |
||||
Deposit service charges |
10,766 |
11,699 |
11,278 |
10,767 |
10,901 |
||||
Securities gains, net |
39 |
162 |
(54) |
(2) |
27 |
||||
Insurance commissions |
30,180 |
27,981 |
31,705 |
32,965 |
29,130 |
||||
Trust income |
3,788 |
3,681 |
3,742 |
3,850 |
3,848 |
||||
Annuity fees |
265 |
218 |
276 |
357 |
297 |
||||
Brokerage commissions and fees |
1,582 |
1,635 |
1,998 |
1,538 |
1,552 |
||||
Bank-owned life insurance |
1,822 |
3,636 |
2,842 |
3,259 |
1,947 |
||||
Other miscellaneous income |
4,864 |
3,353 |
3,455 |
2,288 |
8,403 |
||||
Total noninterest revenue |
$ 64,220 |
$ 59,031 |
$ 71,616 |
$ 72,456 |
$ 78,934 |
||||
NONINTEREST EXPENSE: |
|||||||||
Salaries and employee benefits |
$ 97,228 |
$ 92,013 |
$ 89,646 |
$ 91,451 |
$ 91,197 |
||||
Occupancy, net of rental income |
11,551 |
12,107 |
11,690 |
11,103 |
10,804 |
||||
Equipment |
3,888 |
3,837 |
3,994 |
3,804 |
3,754 |
||||
Deposit insurance assessments |
2,740 |
1,866 |
2,954 |
3,129 |
2,360 |
||||
Advertising |
947 |
1,440 |
1,522 |
1,226 |
855 |
||||
Foreclosed property expense |
624 |
1,113 |
920 |
997 |
366 |
||||
Telecommunications |
1,340 |
1,364 |
1,318 |
1,327 |
1,217 |
||||
Public relations |
765 |
834 |
795 |
829 |
794 |
||||
Data processing |
8,442 |
8,231 |
8,113 |
7,970 |
7,360 |
||||
Computer software |
3,699 |
3,840 |
3,652 |
3,624 |
3,336 |
||||
Amortization of intangibles |
1,985 |
2,040 |
1,438 |
1,559 |
1,602 |
||||
Legal |
605 |
1,082 |
657 |
1,568 |
691 |
||||
Merger expense |
891 |
4,456 |
942 |
1,911 |
5,727 |
||||
Postage and shipping |
1,412 |
1,214 |
1,238 |
1,151 |
1,237 |
||||
Other miscellaneous expense |
13,851 |
16,905 |
13,530 |
13,533 |
16,401 |
||||
Total noninterest expense |
$ 149,968 |
$ 152,342 |
$ 142,409 |
$ 145,182 |
$ 147,701 |
||||
INSURANCE COMMISSIONS: |
|||||||||
Property and casualty commissions |
$ 21,238 |
$ 19,242 |
$ 21,907 |
$ 23,041 |
$ 20,100 |
||||
Life and health commissions |
5,982 |
5,892 |
6,162 |
6,753 |
5,943 |
||||
Risk management income |
587 |
558 |
635 |
605 |
750 |
||||
Other |
2,373 |
2,289 |
3,001 |
2,566 |
2,337 |
||||
Total insurance commissions |
$ 30,180 |
$ 27,981 |
$ 31,705 |
$ 32,965 |
$ 29,130 |
BancorpSouth Bank |
|||||
Selected Additional Information |
|||||
(Dollars in thousands) |
|||||
(Unaudited) |
|||||
Quarter Ended |
|||||
Mar-19 |
Dec-18 |
Sep-18 |
Jun-18 |
Mar-18 |
|
MORTGAGE SERVICING RIGHTS: |
|||||
Fair value, beginning of period |
$ 69,822 |
$ 77,796 |
$ 75,614 |
$ 75,206 |
$ 69,190 |
Additions to mortgage servicing rights: |
|||||
Originations of servicing assets |
1,976 |
2,840 |
3,520 |
3,516 |
2,683 |
Changes in fair value: |
|||||
Due to payoffs/paydowns |
(2,052) |
(2,465) |
(2,984) |
(2,916) |
(2,382) |
Due to change in valuation inputs or |
|||||
assumptions used in the valuation model |
(5,103) |
(8,348) |
1,646 |
(191) |
5,716 |
Other changes in fair value |
- |
(1) |
- |
(1) |
(1) |
Fair value, end of period |
$ 64,643 |
$ 69,822 |
$ 77,796 |
$ 75,614 |
$ 75,206 |
MORTGAGE BANKING REVENUE: |
|||||
Production revenue: |
|||||
Origination |
$ 4,068 |
$ 2,207 |
$ 3,161 |
$ 5,295 |
$ 5,239 |
Servicing |
4,893 |
5,047 |
4,868 |
4,726 |
4,875 |
Payoffs/Paydowns |
(2,052) |
(2,465) |
(2,984) |
(2,916) |
(2,382) |
Total production revenue |
6,909 |
4,789 |
5,045 |
7,105 |
7,732 |
Market value adjustment on MSR |
(5,103) |
(8,348) |
1,646 |
(191) |
5,716 |
Market value adjustment on MSR Hedge |
234 |
284 |
(174) |
(10) |
(183) |
Total mortgage banking revenue |
$ 2,040 |
$ (3,275) |
$ 6,517 |
$ 6,904 |
$ 13,265 |
Mortgage loans serviced |
$ 6,718,236 |
$ 6,686,475 |
$ 6,628,445 |
$ 6,579,444 |
$ 6,532,950 |
MSR/mtg loans serviced |
0.96% |
1.04% |
1.17% |
1.15% |
1.15% |
AVAILABLE-FOR-SALE SECURITIES, at fair value |
|||||
U.S. Government agencies |
$ 2,179,699 |
$ 2,200,158 |
$ 2,260,949 |
$ 2,235,238 |
$ 2,385,962 |
U.S. Government agency issued residential |
|||||
mortgage-back securities |
141,542 |
136,846 |
138,624 |
141,443 |
139,148 |
U.S. Government agency issued commercial |
|||||
mortgage-back securities |
98,941 |
107,841 |
107,506 |
122,974 |
124,041 |
Obligations of states and political subdivisions |
272,317 |
304,343 |
319,280 |
329,099 |
340,616 |
Total available-for-sale securities |
$ 2,692,499 |
$ 2,749,188 |
$ 2,826,359 |
$ 2,828,754 |
$ 2,989,767 |
BancorpSouth Bank |
|||||||||||
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 |
|||||||||||
3/31/2019 |
12/31/2018 |
9/30/2018 |
6/30/2018 |
3/31/2018 |
|||||||
Net income |
$ 51,598 |
$ 47,097 |
$ 66,683 |
$ 54,046 |
$ 53,491 |
||||||
Plus: |
Merger expense, net of tax |
669 |
3,345 |
707 |
1,434 |
4,298 |
|||||
Tax-related matters |
- |
- |
- |
- |
- |
||||||
Less: |
Security gains(losses), net of tax |
29 |
122 |
(40) |
(2) |
20 |
|||||
Tax-related matters |
- |
- |
11,288 |
- |
- |
||||||
Net operating income |
$ 52,238 |
$ 50,320 |
$ 56,142 |
$ 55,482 |
$ 57,769 |
||||||
Less: |
MSR market value adjustment, net of tax |
(3,654) |
(6,052) |
1,103 |
(151) |
4,153 |
|||||
Net operating income-excluding MSR |
$ 55,892 |
$ 56,372 |
$ 55,039 |
$ 55,633 |
$ 53,616 |
||||||
Reconciliation of Total Operating Expense to Total Noninterest Expense: |
|||||||||||
Total noninterest expense |
$ 149,968 |
$ 152,342 |
$ 142,409 |
$ 145,182 |
$ 147,701 |
||||||
Less: |
Merger expense |
891 |
4,456 |
942 |
1,911 |
5,727 |
|||||
Total operating expense |
$ 149,077 |
$ 147,886 |
$ 141,467 |
$ 143,271 |
$ 141,974 |
BancorpSouth Bank |
|||||||||||
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 |
|||||||||||
3/31/2019 |
12/31/2018 |
9/30/2018 |
6/30/2018 |
3/31/2018 |
|||||||
Tangible assets |
|||||||||||
Total assets |
$ 18,314,183 |
$ 18,001,540 |
$ 17,249,175 |
$ 17,222,491 |
$ 17,185,772 |
||||||
Less: |
Goodwill |
699,073 |
695,720 |
590,292 |
588,004 |
580,900 |
|||||
Other identifiable intangible assets |
49,396 |
50,896 |
36,475 |
39,031 |
40,590 |
||||||
Total tangible assets |
$ 17,565,714 |
$ 17,254,924 |
$ 16,622,408 |
$ 16,595,456 |
$ 16,564,282 |
||||||
Tangible shareholders' equity |
|||||||||||
Total shareholders' equity |
$ 2,226,585 |
$ 2,205,737 |
$ 2,116,375 |
$ 2,072,083 |
$ 2,060,487 |
||||||
Less: |
Goodwill |
699,073 |
695,720 |
590,292 |
588,004 |
580,900 |
|||||
Other identifiable intangible assets |
49,396 |
50,896 |
36,475 |
39,031 |
40,590 |
||||||
Total tangible shareholders' equity |
$ 1,478,116 |
$ 1,459,121 |
$ 1,489,608 |
$ 1,445,048 |
$ 1,438,997 |
||||||
Total average assets |
$ 18,033,513 |
$ 17,879,081 |
$ 17,059,865 |
$ 17,094,283 |
$ 16,918,568 |
||||||
Total shares of common stock outstanding |
99,066,856 |
99,797,271 |
98,525,516 |
98,700,509 |
99,636,779 |
||||||
Average shares outstanding-diluted |
99,717,119 |
99,720,219 |
98,819,905 |
99,057,054 |
98,942,268 |
||||||
Tangible shareholders' equity to tangible assets (1) |
8.41% |
8.46% |
8.96% |
8.71% |
8.69% |
||||||
Return on tangible equity (2) |
14.16% |
12.81% |
17.76% |
15.00% |
15.08% |
||||||
Operating return on tangible equity-excluding MSR (3) |
15.34% |
15.33% |
14.66% |
15.44% |
15.11% |
||||||
Operating return on average assets-excluding MSR (4) |
1.26% |
1.25% |
1.28% |
1.31% |
1.29% |
||||||
Operating return on average shareholders' equity-excluding MSR (5) |
10.24% |
10.20% |
10.45% |
10.88% |
10.80% |
||||||
Tangible book value per share (6) |
$ 14.92 |
$ 14.62 |
$ 15.12 |
$ 14.64 |
$ 14.44 |
||||||
Operating earnings per share (7) |
$ 0.52 |
$ 0.51 |
$ 0.57 |
$ 0.56 |
$ 0.58 |
||||||
Operating earnings per share-excluding MSR (8) |
$ 0.56 |
$ 0.57 |
$ 0.56 |
$ 0.56 |
$ 0.54 |
||||||
(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 |
||||||||||
(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' |
||||||||||
(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 |
||||||||||
(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 |
SOURCE BancorpSouth Bank