Published: January 17, 2012
BancorpSouth Announces Fourth Quarter 2011 Earnings of $13.3 Million or $0.16 per Diluted Share
TUPELO, Miss., Jan. 17, 2012 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and year ended December 31, 2011. The Company reported net income of $37.6 million, or $0.45 per diluted share, for 2011 compared with $22.9 million, or $0.27 per diluted share, for 2010. Additionally, the Company reported net income of $13.3 million, or $0.16 per diluted share, for the fourth quarter of 2011. This compares with $11.9 million, or $0.14 per diluted share, for the third quarter of 2011 and $15.8 million, or $0.19 per diluted share, for the fourth quarter of 2010.
"Our results for the fourth quarter reflect meaningful progress in our efforts to improve credit quality," remarked Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth. "This progress is evidenced by both comparable quarter and sequential quarter improvement in many of our credit quality indicators, including the provision for credit losses, non-performing loans, nonaccrual loan formation, and near term delinquencies."
Earnings for the quarter benefited from a reduction in the provision for credit losses to $19.3 million compared to $43.3 million for the fourth quarter of 2010 and $25.1 million for the third quarter of 2011. Non-performing loans ("NPLs") declined $40.5 million, or 11.2 percent, during the fourth quarter of 2011 to $322.3 million at December 31, 2011 compared with $362.8 million at September 30, 2011. This decline followed a $17.0 million, or 4.5 percent, decline during the third quarter of 2011. In addition, gross nonaccrual loan formation decreased to $39.5 million for the fourth quarter of 2011 compared to $131.1 million for the fourth quarter of 2010 and $60.8 million for the third quarter of 2011. This represents the lowest level of nonaccrual loan formation in nine quarters. Total loans 30 - 89 days past due decreased during the fourth quarter of 2011 to $37.5 million at December 31, 2011 from $54.1 million at September 30, 2011. Net charge-offs increased $0.8 million, or 3.3 percent, to $23.8 million for the fourth quarter of 2011 compared with the third quarter of 2011. Net charge-offs during the fourth quarter of 2011 included $19.0 million of charge-offs of previously impaired loans. The increase in net charge-offs during the quarter followed a $9.9 million, or 30.0 percent, sequential quarter decline for the third quarter of 2011.
The $40.5 million decline in NPLs during the fourth quarter of 2011 was driven primarily by a $37.7 million decline in nonaccrual loans. Construction, acquisition and development ("CAD") nonaccrual loans declined $38.5 million to $133.1 million at December 31, 2011 from $171.6 million at September 30, 2011 and represented 48.1 percent of total nonaccrual loans at the end of the fourth quarter. Additionally, commercial real estate nonaccrual loans declined $8.9 million, or 18.0 percent, during the fourth quarter. These declines in the fourth quarter were offset partially by increases in consumer mortgage nonaccrual loans as well as commercial and industrial owner-occupied real estate nonaccrual loans. Total loans 90 days or more past due and still accruing declined $3.9 million from $7.4 million at September 30, 2011 to $3.4 million at December 31, 2011, and restructured loans and leases still accruing increased $1.1 million from $41.0 million at September 30, 2011 to $42.0 million at December 31, 2011.
At the end of the fourth quarter, 84.9 percent of nonaccrual loans were determined to be collaterally dependent, and after write-downs and specific reserves, the remaining book balance of these loans was 68.0 percent of the unpaid principal balance. At December 31, 2011, coverage of unimpaired nonaccrual loans by the nonspecified allowance for credit losses was 371 percent and coverage of unimpaired NPLs by the nonspecified allowance for credit losses was 178 percent. In addition, 51.0 percent of nonaccrual loans were paying as agreed at December 31, 2011, compared with 48.1 percent at the end of the third quarter of 2011.
Other real estate owned increased $11.1 million to $173.8 million during the fourth quarter of 2011. This increase reflected $36.5 million added through foreclosure, partially offset by sales of other real estate owned of $16.7 million, which increased from sales of $13.1 million for the third quarter of 2011. Write-downs in the value of existing properties were $8.7 million for the fourth quarter of 2011, representing an increase of $4.3 million from $4.4 million for the third quarter of 2011. The sales of other real estate owned during the fourth quarter of 2011 resulted in no material net gain or loss, consistent with the third quarter of 2011. The write-downs of existing other real estate owned reflected our continued efforts to value ORE properties at disposition value. "We were pleased with the disposal progress made during the quarter," commented Patterson. At December 31, 2011 other real estate owned was carried at 54 percent of the aggregate loan balances at the time of foreclosure, compared with 56 percent at September 30, 2011.
Patterson added, "We continue to have solid performance from our community banking group as well as our other noninterest revenue lines of business, which include our insurance group and our mortgage business. Our mortgage business had another strong year, both in terms of production and revenue, and our insurance group produced organic growth when compared to the same quarter last year as well as on an annual basis. Additionally, despite margin pressure attributable to a weak lending environment and historically low interest rates, we have been able to maintain our net interest margin."
Net Interest Revenue
Net interest revenue was $107.5 million for the fourth quarter of 2011, a decrease of 2.5 percent from $110.3 million for the fourth quarter of 2010 and 0.5 percent from $108.1 million for the third quarter of 2011. The fully taxable equivalent net interest margin was 3.69 percent for the fourth quarter of 2011 compared with 3.59 percent for the fourth quarter of 2010 and 3.66 percent for the third quarter of 2011.
Asset, Deposit and Loan Activity
Total assets were $13.0 billion at December 31, 2011 compared with $13.6 billion at December 31, 2010. Total deposits were $11.0 billion at December 31, 2011, a decrease of 4.7 percent from $11.5 billion at December 31, 2010. Loans and leases, net of unearned income, were $8.9 billion at December 31, 2011, a decrease of 5.0 percent from $9.3 billion at December 31, 2010.
The CAD loan portfolio, which decreased $266.4 million, or 22.7 percent, for the 12 months ended December 31, 2011, accounted for 58.0 percent of the decline in net loans and leases over the year. Excluding the impact of the CAD loan portfolio, net loans and leases declined $196.4 million, or 2.4 percent, for the 12 months ended December 31, 2011.
Time deposits, which decreased $648.5 million, or 17.8 percent, for the 12 months ended December 31, 2011, were offset partially by significant growth in noninterest bearing demand deposits, which increased $209.7 million, or 10.2 percent, over the year. Additionally, savings deposits increased $128.7 million, or 14.9 percent, for the 12 months ended December 31, 2011, while interest bearing demand deposits decreased $224.7 million, or 4.6 percent. Core deposits represented 87 percent of total deposits at December 31, 2011, compared with 85 percent of total deposits at December 31, 2010. Approximately $1.1 billion of time deposits are scheduled to mature during the first half of 2012 at a weighted average rate of 1.26 percent.
Provision for Credit Losses and Allowance for Credit Losses
During the fourth quarter of 2011, the Company's management concluded that the previously reported material weakness in internal control over financial reporting, which resulted from a control deficiency in the Company's credit grading process, has been remediated. Patterson added, "The successful remediation of the previously reported material weakness represents the completion of a great deal of work in improving our processes. Importantly, the hard work applied to address our deficiencies will provide stronger credit processes for our business in the future."
For the fourth quarter of 2011, the provision for credit losses was $19.3 million, compared with $43.3 million for the fourth quarter of 2010 and $25.1 million for the third quarter of 2011. The decrease in the provision for credit losses reflected a decline in the formation of new non-accrual loans, including fewer loans being identified for impairment, continued stabilization in values of previously impaired loans, improved past dues, and stable charge-offs. Annualized net charge-offs were 1.06 percent of average loans and leases for the fourth quarter of 2011, compared with 2.19 percent for the fourth quarter of 2010 and 1.01 percent for the third quarter of 2011.
NPLs were $322.3 million, or 3.63 percent of net loans and leases, at December 31, 2011 compared with $394.4 million, or 4.23 percent of net loans and leases, at December 31, 2010 and $362.8 million, or 4.01 percent of net loans and leases, at September 30, 2011. The allowance for credit losses was 2.20 percent of net loans and leases at December 31, 2011 compared with 2.11 percent at December 31, 2010 and 2.21 percent at September 30, 2011.
NPLs at December 31, 2011 consisted primarily of $276.8 million of nonaccrual loans, compared with $314.5 million of nonaccrual loans at September 30, 2011. NPLs at December 31, 2011 also included $3.4 million of loans 90 days or more past due and still accruing, compared with $7.4 million of such loans at September 30, 2011, and included restructured loans still accruing of $42.0 million at December 31, 2011, compared with $41.0 million of such loans at September 30, 2011. Loans and leases 30 to 89 days past due were $37.5 million at December 31, 2011 compared with $54.1 million of such loans at September 30, 2011.
Included in the reduction of nonaccrual loans during the fourth quarter of 2011 were payments received on nonaccrual loans of $15.1 million. Patterson added, "While we have not had a significant return of nonaccrual loans to performing status, we are encouraged that the trend of increasing nonaccrual loans paying as agreed should provide an opportunity to return certain NPLs to performing status in the future."
At December 31, 2011, $88.2 million of NPLs were residential CAD loans, $47.0 million were other CAD loans, $61.8 million were commercial real estate mortgage loans and $52.6 million were consumer mortgages. NPLs from all other loan types totaled $72.6 million at December 31, 2011. Included in nonaccrual loans at December 31, 2011 were $141.2 million of loans, or 51.0 percent of total nonaccrual loans, that were paying as agreed. These loans were generally placed on nonaccrual status because the collateral values were less than the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or will be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values. Such loans are generally deemed to be impaired, with a specific reserve established for the difference in the balance owed and the collateral values.
Noninterest Revenue
Noninterest revenue was $65.3 million for the fourth quarter of 2011, compared with $74.0 million for the fourth quarter of 2010 and $62.1 million for the third quarter of 2011. These results included negative MSR valuation adjustments of $1.0 million and $11.7 million for the fourth quarter of 2011 and the third quarter of 2011, respectively, and a positive MSR valuation adjustment of $8.9 million for the fourth quarter of 2010.
Excluding the MSR valuation adjustments, net mortgage lending revenue was $9.9 million for the fourth quarter of 2011, compared with $9.2 million for the fourth quarter of 2010 and $10.2 million for the third quarter of 2011. Mortgage origination volume for the fourth quarter of 2011 was $389.6 million, compared with $451.9 million for the fourth quarter of 2010 and $374.8 million for the third quarter of 2011.
Credit and debit card fees decreased $2.2 million, or 21.8 percent, for the fourth quarter of 2011 from the fourth quarter of 2010 and $5.2 million, or 40.0 percent, from the third quarter of 2011. Service charges increased $0.6 million, or 3.3 percent, for the comparable quarters and were flat on a sequential quarter basis. Insurance commissions rose $1.4 million, or 7.8 percent, for the comparable quarters and declined $2.6 million, or 11.8 percent, on a sequential quarter basis.
Noninterest Expense
Noninterest expense for the fourth quarter of 2011 was $135.9 million, compared with $123.4 million for the fourth quarter of 2010 and $130.7 million for the third quarter of 2011. Results for the third quarter of 2011 included a one-time expense of $3.1 million related to the closure of 22 branch offices under the Company's branch optimization project.
Foreclosed property expense increased to $10.8 million for the fourth quarter of 2011 from $6.1 million for the fourth quarter of 2010 and $6.1 million for the third quarter of 2011. Deposit insurance assessments decreased to $5.7 million for the fourth quarter of 2011 from $5.9 million for the fourth quarter of 2010 and increased from $3.8 million for the third quarter of 2011.
Capital Management
BancorpSouth remains a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 11.77 percent at December 31, 2011 and total risk based capital of 13.03 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for "well capitalized" classification. The Company's equity capitalization is 100 percent common stock. BancorpSouth's ratio of shareholders' equity to assets increased to 9.72 percent at December 31, 2011, compared with 8.98 percent at December 31, 2010 and 9.60 percent at September 30, 2011. The ratio of tangible shareholders' equity to tangible assets increased to 7.67 percent at December 31, 2011, compared with 7.00 percent at December 31, 2010 and 7.58 percent at September 30, 2011.
Summary
Patterson concluded, "Our fourth quarter results indicate improvement achieved in our credit costs and other credit metrics, which reflect progress towards problem asset resolution. We are focused on continuing to improve asset quality. However, we remain cautious about the impact of the current economic environment on our near-term results. Despite this difficult environment, we continue to be pleased with the performance of our core operations. We have successfully maintained our net interest margin and have steadily increased revenue from our noninterest lines of business.
"BancorpSouth remains a well capitalized financial institution, built on customer service, relationships, and a comprehensive range of financial products. We have continued to work to deepen relationships with existing clients and to develop new relationships through our deposit offerings, mortgage lending, insurance, and other products and services. We believe these attributes and efforts will allow us to continue to build our prospects for long-term growth and increased shareholder value."
Conference Call
BancorpSouth will conduct a conference call to discuss its fourth quarter 2011 results on January 24, 2012, at 10:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com. A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.
Forward-Looking Statements
Certain statements contained in this news release may not be based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "may," "might," "will," "would," "could" or "intend." These forward-looking statements include, without limitation, statements relating to our ability to return nonaccrual loans to performing status, the strength of our credit processes, our ability to enhance prospects for long-term growth and increased shareholder value, and our use of non-GAAP financial measures.
We caution you not to place undue reliance on the forward-looking statements contained in this news release in that actual results could differ materially from those indicated in such forward-looking statements because of a variety of factors. These factors may include, but are not limited to, conditions in the financial markets and economic conditions generally, the soundness of other financial institutions, the availability of capital on favorable terms if and when needed, liquidity risk, the credit risk associated with real estate construction, acquisition and development loans, estimates of costs and values associated with real estate construction, acquisition and development loans in the Company's loan portfolio, the adequacy of the Company's allowance for credit losses to cover actual credit losses, governmental regulation and supervision of the Company's operations, the susceptibility of the Company's business to local economic conditions, the impact of recent legislation and regulations on service charges for core deposit accounts, 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, the impact of hurricanes or other adverse weather events, risks in connection with completed or potential acquisitions, dilution caused by the Company's issuance of any additional shares of its common stock to raise capital or to acquire other banks, bank holding companies, financial holding companies and insurance agencies, restrictions on the Company's ability to declare and pay dividends, the Company's growth strategy, diversification in the types of financial services the Company offers, competition with other financial services companies, interruptions or breaches in security of the Company's information systems, the failure of certain third party vendors to perform, the Company's ability to improve its internal controls adequately, any requirement that the Company write down goodwill or other intangible assets, other factors generally understood to affect the financial results of financial services companies, and other factors described from time to time in BancorpSouth's filings with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.0 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 286 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas. BancorpSouth Bank also operates an insurance location in Illinois.
BancorpSouth, Inc.
Selected Financial Data
-----------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2011 2010 2011 2010
---- ---- ---- ----
(Dollars in thousands, except
per share amounts)
Earnings Summary:
Net interest revenue $107,489 $110,253 $434,913 $441,142
Provision for credit losses 19,250 43,293 130,081 204,016
Noninterest revenue 65,335 73,974 270,845 264,144
Noninterest expense 135,856 123,447 533,633 487,033
------- ------- ------- -------
Income before income taxes 17,718 17,487 42,044 14,237
Income tax provision (benefit) 4,415 1,641 4,475 (8,705)
Net income $13,303 $15,846 $37,569 $22,942
======= ======= ======= =======
Earning per share: Basic $0.16 $0.19 $0.45 $0.28
===== ===== ===== =====
Diluted $0.16 $0.19 $0.45 $0.27
===== ===== ===== =====
Balance sheet data at December
31:
Total assets $12,995,851 $13,615,010
Total earning assets 11,770,950 12,458,055
Loans and leases, net of
unearned income 8,870,311 9,333,107
Allowance for credit losses 195,118 196,913
Total deposits 10,955,189 11,490,021
Common shareholders' equity 1,262,912 1,222,244
Book value per share 15.13 14.64
Average balance sheet data:
Total assets $13,046,779 $13,559,038 $13,280,047 $13,304,836
Total earning assets 11,918,358 12,510,705 12,143,391 12,223,933
Loans and leases, net of
unearned interest 8,954,229 9,418,687 9,159,431 9,621,529
Total deposits 11,017,231 11,292,903 11,251,406 11,107,445
Common shareholders' equity 1,268,905 1,225,514 1,240,768 1,241,321
Non-performing assets at
December 31:
Non-accrual loans and leases $276,798 $347,499
Loans and leases 90+ days past
due, still accruing 3,434 8,500
Restructured loans and leases,
still accruing 42,018 38,376
Other real estate owned 173,805 133,412
------- -------
Total non-performing assets 496,055 527,787
Net charge-offs as a percentage
of average loans (annualized) 1.06% 2.19% 1.44% 1.90%
Performance ratios (annualized):
Return on average assets 0.40% 0.46% 0.28% 0.17%
Return on common equity 4.16% 5.13% 3.03% 1.85%
Total shareholders' equity to
total assets 9.72% 8.98% 9.72% 8.98%
Tangible shareholders' equity to
tangible assets 7.67% 7.00% 7.67% 7.00%
Net interest margin 3.69% 3.59% 3.69% 3.70%
Average shares outstanding -
basic 83,488,102 83,435,268 83,486,296 83,425,183
Average shares outstanding -
diluted 83,503,611 83,471,420 83,509,759 83,515,040
Cash dividends per share $0.01 $0.22 $0.14 $0.88
Tier I capital 11.77% (1) 10.61%
Total capital 13.03% (1) 11.87%
Tier I leverage capital 8.85% (1) 8.07%
(1) Estimated as of earnings
release date
BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
Dec-11 Sep-11 Jun-11 Mar-11 Dec-10
------ ------ ------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from
banks $195,681 $161,876 $166,761 $146,989 $99,916
Interest bearing
deposits with other
banks 303,663 338,250 304,344 102,312 172,170
Held-to-maturity
securities, at
amortized cost - - - 1,667,203 1,613,019
Available-for-sale
securities, at fair
value 2,513,518 2,481,555 2,560,824 1,145,463 1,096,062
Federal funds sold and
securities
purchased under
agreement to resell - - - 150,000 150,000
Loans and leases 8,911,258 9,096,928 9,255,879 9,255,609 9,376,351
Less: Unearned income 40,947 41,023 41,326 41,773 43,244
Allowance for credit
losses 195,118 199,686 197,627 198,333 196,913
------- -------
Net loans and leases 8,675,193 8,856,219 9,016,926 9,015,503 9,136,194
Loans held for sale 83,458 100,687 70,519 56,876 93,697
Premises and
equipment, net 323,383 323,285 328,075 329,862 332,890
Accrued interest
receivable 51,266 53,338 55,525 61,105 61,025
Goodwill 271,297 271,297 271,297 271,297 270,097
Bank owned life
insurance 200,085 197,945 197,028 194,988 194,064
Other real estate
owned 173,805 162,686 151,204 136,412 133,412
Other assets 204,502 251,380 244,547 269,228 262,464
Total Assets $12,995,851 $13,198,518 $13,367,050 $13,547,238 $13,615,010
=========== =========== =========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest
bearing $2,269,799 $2,198,535 $2,096,655 $2,027,990 $2,060,145
Interest bearing 4,706,825 4,736,858 4,939,553 5,023,073 4,931,518
Savings 991,702 968,277 944,993 932,574 863,034
Other time 2,986,863 3,159,563 3,327,262 3,480,477 3,635,324
Total deposits 10,955,189 11,063,233 11,308,463 11,464,114 11,490,021
Federal funds
purchased and
securities sold under
agreement
to repurchase 373,933 449,501 426,097 421,782 440,593
Short-term Federal
Home Loan Bank
borrowings
and other short-term
borrowing 1,500 1,500 703 2,715 2,727
Accrued interest
payable 8,644 10,017 11,348 13,238 14,336
Junior subordinated
debt securities 160,312 160,312 160,312 160,312 160,312
Long-term Federal
Home Loan Bank
borrowings 33,500 33,500 35,000 110,000 110,000
Other liabilities 199,861 213,702 178,424 164,016 174,777
------- -------
Total Liabilities 11,732,939 11,931,765 12,120,347 12,336,177 12,392,766
Shareholders' Equity
--------------------
Common stock 208,709 208,722 208,722 208,704 208,704
Capital surplus 227,567 227,006 226,362 225,597 224,976
Accumulated other
comprehensive income
(loss) (2,261) 14,595 6,289 (16,579) (14,453)
Retained earnings 828,897 816,430 805,330 793,339 803,017
Total Shareholders'
Equity 1,262,912 1,266,753 1,246,703 1,211,061 1,222,244
--------- ---------
Total Liabilities &
Shareholders' Equity $12,995,851 $13,198,518 $13,367,050 $13,547,238 $13,615,010
=========== =========== =========== =========== ===========
BancorpSouth, Inc.
Consolidated Average Balance Sheets
(Unaudited)
Dec-11 Sep-11 Jun-11 Mar-11 Dec-10
------ ------ ------ ------ ------
(Dollars in thousands)
Assets
------
Cash and due from
banks $151,004 $148,409 $151,194 $156,329 $176,979
Interest bearing
deposits with other
banks 384,231 309,146 187,901 167,271 282,396
Held-to-maturity
securities, at
amortized cost - - 1,097,562 1,653,284 1,436,222
Available-for-sale
securities, at fair
value 2,509,943 2,529,482 1,609,720 1,085,131 996,006
Federal funds sold and
securities
purchased under
agreement to resell 2,174 - 38,736 150,000 209,511
Loans and leases 8,995,035 9,179,730 9,291,434 9,342,939 9,461,161
Less: Unearned income 40,806 41,316 42,307 42,954 42,474
Allowance for credit
losses 208,005 205,209 212,968 218,107 215,278
------- ------- -------
Net loans and leases 8,746,224 8,933,205 9,036,159 9,081,878 9,203,409
Loans held for sale 67,781 62,025 44,704 39,098 91,262
Premises and
equipment, net 322,544 326,800 328,829 330,920 333,516
Accrued interest
receivable 49,256 53,122 54,570 58,450 58,591
Goodwill 271,297 271,297 271,297 270,510 270,097
Bank owned life
insurance 14,558 14,642 14,189 13,217 9,836
Other real estate
owned 164,841 152,052 138,827 129,781 98,944
Other assets 362,926 374,475 391,872 403,894 392,269
Total Assets $13,046,779 $13,174,655 $13,365,560 $13,539,763 $13,559,038
=========== =========== =========== =========== ===========
Liabilities
-----------
Deposits:
Demand: Noninterest
bearing $2,248,904 $2,147,707 $2,018,197 $1,893,720 $1,975,318
Interest bearing 4,714,059 4,789,462 4,977,764 5,153,063 4,740,734
Savings 975,892 957,871 941,169 897,312 831,805
Other time 3,078,376 3,246,332 3,418,741 3,553,543 3,745,046
Total deposits 11,017,231 11,141,372 11,355,871 11,497,638 11,292,903
Federal funds
purchased and
securities sold under
agreement
to repurchase 430,968 457,640 423,949 430,930 475,760
Short-term Federal
Home Loan Bank
borrowings
and other short-term
borrowing 1,500 486 1,641 2,719 147,839
Accrued interest
payable 10,617 12,108 13,558 14,873 16,811
Junior subordinated
debt securities 160,312 160,312 160,312 160,312 160,312
Long-term Federal
Home Loan Bank
borrowings 33,500 34,984 89,395 110,000 110,000
Other liabilities 123,746 115,938 98,553 103,892 129,899
------ ------- -------
Total Liabilities 11,777,874 11,922,840 12,143,279 12,320,364 12,333,524
Shareholders' Equity
--------------------
Common stock 208,722 208,722 208,715 208,704 208,704
Capital surplus 227,201 226,582 225,912 225,162 224,357
Accumulated other
comprehensive income
(loss) 8,927 6,379 (10,040) (14,346) (3,331)
Retained earnings 824,055 810,132 797,694 799,879 795,784
Total Shareholders'
Equity 1,268,905 1,251,815 1,222,281 1,219,399 1,225,514
--------- --------- ---------
Total Liabilities &
Shareholders' Equity $13,046,779 $13,174,655 $13,365,560 $13,539,763 $13,559,038
=========== =========== =========== =========== ===========
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended Year To Date
------------- ------------
Dec-11 Sep-11 Jun-11 Mar-11 Dec-10 Dec-11 Dec-10
------ ------ ------ ------ ------ ------ ------
INTEREST REVENUE:
Loans and leases $112,566 $114,260 $116,892 $117,358 $121,672 $461,076 $496,782
Deposits with other banks 252 203 124 122 222 701 355
Federal funds sold and securities purchased
under agreement to resell 1 - 35 131 168 167 606
Held-to-maturity securities:
Taxable - - 5,066 8,014 8,490 13,080 36,278
Tax-exempt - - 2,291 3,347 2,952 5,638 10,409
Available-for-sale securities:
Taxable 11,781 13,172 10,451 8,585 7,836 43,989 32,033
Tax-exempt 4,158 4,130 1,871 824 815 10,983 3,275
Loans held for sale 635 632 505 447 902 2,219 3,024
--- --- --- --- --- ----- -----
Total interest revenue 129,393 132,397 137,235 138,828 143,057 537,853 582,762
------- ------- ------- ------- ------- ------- -------
INTEREST EXPENSE:
Interest bearing demand 4,737 5,324 6,039 6,546 7,462 22,646 35,187
Savings 747 828 810 826 891 3,211 3,576
Other time 13,104 14,837 16,285 17,483 19,827 61,709 83,999
Federal funds purchased and securities sold
under agreement to repurchase 76 95 135 152 189 458 841
FHLB borrowings 367 375 1,194 1,523 1,569 3,459 6,545
Junior subordinated debt 2,871 2,861 2,860 2,859 2,864 11,451 11,461
Other 2 2 - 2 2 6 11
--- --- --- --- --- --- ---
Total interest expense 21,904 24,322 27,323 29,391 32,804 102,940 141,620
------ ------ ------ ------ ------ ------- -------
Net interest revenue 107,489 108,075 109,912 109,437 110,253 434,913 441,142
Provision for credit losses 19,250 25,112 32,240 53,479 43,293 130,081 204,016
------ ------ ------ ------ ------ ------- -------
Net interest revenue, after provision for
credit losses 88,239 82,963 77,672 55,958 66,960 304,832 237,126
------ ------ ------ ------ ------ ------- -------
NONINTEREST REVENUE:
Mortgage lending 8,928 (1,443) 2,003 7,581 18,126 17,069 29,745
Credit card, debit card and merchant fees 7,783 12,981 11,263 10,346 9,951 42,373 37,663
Service charges 17,412 17,334 16,556 15,368 16,854 66,670 70,690
Trust income 3,348 2,854 2,850 3,134 3,072 12,186 11,149
Security gains (losses), net 18 2,047 10,045 17 (470) 12,127 2,569
Insurance commissions 19,416 22,012 22,941 22,549 18,013 86,918 82,172
Other 8,430 6,270 9,486 9,316 8,428 33,502 30,156
----- ----- ----- ----- ----- ------ ------
Total noninterest revenue 65,335 62,055 75,144 68,311 73,974 270,845 264,144
------ ------ ------ ------ ------ ------- -------
NONINTEREST EXPENSE:
Salaries and employee benefits 70,512 71,851 70,142 70,375 65,980 282,880 271,688
Occupancy, net of rental income 10,315 11,144 10,232 10,671 10,668 42,362 43,008
Equipment 5,108 5,346 5,595 5,658 5,459 21,707 22,598
Deposit insurance assessments 5,674 3,781 6,436 5,425 5,895 21,316 19,259
Prepayment penalty on FHLB borrowings - - 9,778 - - 9,778 -
Other 44,247 38,576 34,886 37,881 35,445 155,590 130,480
------ ------ ------ ------
Total noninterest expenses 135,856 130,698 137,069 130,010 123,447 533,633 487,033
------- ------- ------- ------- ------- ------- -------
Income (loss) before income taxes 17,718 14,320 15,747 (5,741) 17,487 42,044 14,237
Income tax expense (benefit) 4,415 2,386 2,921 (5,247) 1,641 4,475 (8,705)
----- ----- ------ -----
Net income (loss) $13,303 $11,934 $12,826 ($494) $15,846 $37,569 $22,942
======= ======= ======= ===== ======= ======= =======
Net income (loss) per share: Basic $0.16 $0.14 $0.15 ($0.01) $0.19 $0.45 $0.28
===== ===== ===== ====== ===== ===== =====
Diluted $0.16 $0.14 $0.15 ($0.01) $0.19 $0.45 $0.27
===== ===== ===== ====== ===== ===== =====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-11 Sep-11 Jun-11 Mar-11 Dec-10
------ ------ ------ ------ ------
LOAN AND LEASE
PORTFOLIO:
Commercial and
industrial $1,473,728 $1,503,391 $1,526,686 $1,484,223 $1,491,183
Real estate
Consumer mortgages 1,945,190 1,966,124 1,971,499 1,958,367 1,951,563
Home equity 514,362 523,030 531,787 531,406 543,272
Agricultural 239,487 249,715 255,310 250,393 252,292
Commercial and
industrial-owner
occupied 1,301,575 1,329,644 1,366,734 1,316,824 1,331,473
Construction,
acquisition and
development 908,362 976,694 1,060,675 1,117,335 1,174,743
Commercial 1,754,022 1,772,003 1,764,648 1,831,226 1,816,951
Credit cards 106,281 103,232 101,955 100,732 106,345
All other 627,304 632,072 635,259 623,330 665,285
------- ------- ------- ------- -------
Total loans $8,870,311 $9,055,905 $9,214,553 $9,213,836 $9,333,107
---------- ---------- ---------- ---------- ----------
ALLOWANCE FOR
CREDIT LOSSES:
Balance, beginning
of period $199,686 $197,627 $198,333 $196,913 $205,081
Loans and leases
charged off:
Commercial and
industrial (1,677) (1,295) (5,556) (8,809) (1,782)
Real estate
Consumer mortgages (2,953) (2,344) (1,629) (3,260) (5,291)
Home equity (1,667) (1,712) (1,391) (1,082) (1,138)
Agricultural (110) (2,345) (373) (592) (487)
Commercial and
industrial-owner
occupied (1,136) (4,222) (3,228) (1,716) (1,659)
Construction,
acquisition and
development (10,539) (7,697) (16,783) (32,343) (34,989)
Commercial (6,858) (4,467) (1,597) (4,514) (6,327)
Credit cards (706) (760) (725) (881) (990)
All other (794) (770) (4,971) (553) (2,093)
Total loans charged
off (26,440) (25,612) (36,253) (53,750) (54,756)
------- ------- ------- ------- -------
Recoveries:
Commercial and
industrial 446 348 589 184 707
Real estate
Consumer mortgages 263 485 220 143 423
Home equity 43 51 46 45 60
Agricultural 76 - 45 2 4
Commercial and
industrial-owner
occupied 100 99 21 173 195
Construction,
acquisition and
development 971 923 1,493 564 776
Commercial 340 300 392 13 707
Credit cards 168 141 239 255 143
All other 215 212 262 312 280
Total recoveries 2,622 2,559 3,307 1,691 3,295
----- ----- ----- ----- -----
Net charge-offs (23,818) (23,053) (32,946) (52,059) (51,461)
Provision charged
to operating
expense 19,250 25,112 32,240 53,479 43,293
Balance, end of
period $195,118 $199,686 $197,627 $198,333 $196,913
-------- -------- -------- -------- --------
Average loans for
period $8,954,229 $9,138,414 $9,249,127 $9,300,029 $9,418,687
========== ========== ========== ========== ==========
Ratio:
Net charge-offs to
average loans
(annualized) 1.06% 1.01% 1.42% 2.24% 2.19%
==== ==== ==== ==== ====
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-11 Sep-11 Jun-11 Mar-11 Dec-10
------ ------ ------ ------ ------
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial $12,260 $11,122 $9,337 $14,655 $13,075
Real estate
Consumer mortgages 47,878 44,100 34,174 36,025 34,021
Home equity 2,036 2,634 1,232 1,543 811
Agricultural 4,179 6,254 8,526 7,597 7,589
Commercial and industrial-owner occupied 33,112 26,977 26,387 24,638 20,338
Construction, acquisition and development 133,110 171,566 200,434 224,847 211,547
Commercial 40,616 49,500 48,571 58,945 57,766
Credit cards 594 551 546 617 720
All other 3,013 1,775 1,869 1,859 1,632
----- ----- ----- ----- -----
Total nonaccrual loans and leases 276,798 314,479 331,076 370,726 347,499
------- ------- ------- ------- -------
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and industrial 12 1,846 118 501 675
Real estate
Consumer mortgages 2,974 4,136 2,482 3,152 6,521
Home equity - 134 242 139 173
Agricultural - 131 - 7 123
Commercial and industrial-owner occupied - 42 - 255 20
Construction, acquisition and development - 290 432 19 197
Commercial - 106 19 7 -
Credit cards 299 257 299 240 330
All other 149 412 388 509 461
Total loans and leases 90+ days past due, still accruing 3,434 7,354 3,980 4,829 8,500
----- ----- ----- ----- -----
Restructured Loans and Leases, Still Accruing 42,018 40,966 44,786 49,472 38,376
Total non-performing loans and leases 322,250 362,799 379,842 425,027 394,375
------- ------- ------- ------- -------
OTHER REAL ESTATE OWNED: 173,805 162,686 151,204 136,412 133,412
------- ------- ------- ------- -------
Total Non-performing Assets $496,055 $525,485 $531,046 $561,439 $527,787
======== ======== ======== ======== ========
Additions to Nonaccrual Loans and Leases During the Quarter $39,474 $60,799 $50,427 $111,241 $131,140
======= ======= ======= ======== ========
Loans and Leases 30-89 Days Past Due, Still Accruing:
Commercial and industrial $8,065 $9,759 $7,903 $8,407 $13,654
Real estate
Consumer mortgages 15,864 20,144 18,621 17,136 19,147
Home equity 2,037 2,066 2,916 2,492 1,906
Agricultural 339 1,485 2,901 818 1,122
Commercial and industrial-owner occupied 2,154 7,348 2,786 4,369 10,183
Construction, acquisition and development 2,714 4,469 4,939 8,047 6,758
Commercial 3,292 5,136 4,091 7,090 3,823
Credit cards 802 851 785 969 1,023
All other 2,280 2,832 3,005 2,192 2,766
----- ----- ----- ----- -----
Total Loans and Leases 30-89 days past due, still accruing $37,547 $54,090 $47,947 $51,520 $60,382
======= ======= ======= ======= =======
Credit Quality Ratios:
Provision for credit losses to average loans and leases (annualized) 0.86% 1.10% 1.39% 2.30% 1.84%
Allowance for credit losses to net loans and leases 2.20% 2.21% 2.14% 2.15% 2.11%
Allowance for credit losses to non-performing assets 39.33% 38.00% 37.21% 35.33% 37.31%
Allowance for credit losses to non-performing loans and leases 60.55% 55.04% 52.03% 46.66% 49.93%
Non-performing loans and leases to net loans and leases 3.63% 4.01% 4.12% 4.61% 4.23%
Non-performing assets to net loans and leases 5.59% 5.80% 5.76% 6.09% 5.65%
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-11 Sep-11 Jun-11 Mar-11 Dec-10
------ ------ ------ ------ ------
REAL ESTATE CONSTRUCTION,
ACQUISITION
AND DEVELOPMENT ("CAD")
PORTFOLIO:
Outstanding Balance
Multi-family construction $2,138 $10,349 $19,116 $21,051 $27,992
One-to-four family
construction 169,827 181,445 198,809 212,435 218,554
Recreation and all other
loans 67,235 61,084 66,366 63,686 48,375
Commercial construction 130,124 140,570 160,834 155,402 173,557
Commercial acquisition and
development 197,044 206,516 222,460 244,950 250,658
Residential acquisition and
development 341,994 376,730 393,090 419,811 455,607
------- ------- ------- ------- -------
Total outstanding balance $908,362 $976,694 $1,060,675 $1,117,335 $1,174,743
======== ======== ========== ========== ==========
Nonaccrual CAD Loans
Multi-family construction $1,067 $ - $9,174 $8,352 $12,517
One-to-four family
construction 14,690 17,937 24,537 33,570 23,794
Recreation and all other
loans 436 712 774 708 481
Commercial construction 5,235 10,159 16,618 20,889 34,710
Commercial acquisition and
development 23,968 31,862 37,207 47,200 29,658
Residential acquisition and
development 87,714 110,896 112,124 114,128 110,387
------ ------- ------- ------- -------
Total nonaccrual CAD loans 133,110 171,566 200,434 224,847 211,547
------- ------- ------- ------- -------
CAD Loans 90+ Days Past
Due, Still Accruing:
Multi-family construction - - - - -
One-to-four family
construction - 211 - - -
Recreation and all other
loans - - 2 2 -
Commercial construction - - - - 195
Commercial acquisition and
development - - - - -
Residential acquisition and
development - 79 430 17 2
--- --- --- ---
Total CAD loans 90+ days
past due, still accruing - 290 432 19 197
--- --- --- --- ---
Restructured CAD Loans,
Still Accruing
Multi-family construction - - - - -
One-to-four family
construction 318 321 1,697 113 63
Recreation and all other
loans 852 24 24 - -
Commercial construction - - - - -
Commercial acquisition and
development 433 1,415 1,415 834 604
Residential acquisition and
development 446 410 2,274 3,408 1,495
--- --- ----- ----- -----
Total restructured CAD
loans, still accruing 2,049 2,170 5,410 4,355 2,162
----- ----- ----- ----- -----
Total Non-performing CAD
loans $135,159 $174,026 $206,276 $229,221 $213,906
======== ======== ======== ======== ========
CAD NPL as a % of
Outstanding CAD Balance
Multi-family construction 49.9% - 48.0% 39.7% 44.7%
One-to-four family
construction 8.8% 10.2% 13.2% 15.9% 10.9%
Recreation and all other
loans 1.9% 1.2% 1.2% 1.1% 1.0%
Commercial construction 4.0% 7.2% 10.3% 13.4% 20.1%
Commercial acquisition and
development 12.4% 16.1% 17.4% 19.6% 12.1%
Residential acquisition and
development 25.8% 29.6% 29.2% 28.0% 24.6%
Total CAD NPL as a % of
outstanding CAD balance 14.9% 17.8% 19.4% 20.5% 18.2%
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
December 31, 2011
-----------------
Special
Pass Mention Substandard Doubtful Loss Impaired Total
---- ------- ----------- -------- ---- -------- -----
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial $1,415,731 $4,947 $43,549 $1,263 $405 $7,833 $1,473,728
Real estate
Consumer mortgages 1,742,593 17,914 148,267 4,434 189 31,793 1,945,190
Home equity 492,235 2,775 17,050 1,134 493 675 514,362
Agricultural 213,280 3,795 19,296 20 - 3,096 239,487
Commercial and industrial-owner occupied 1,167,220 18,280 90,778 496 - 24,801 1,301,575
Construction, acquisition and development 619,497 23,429 136,412 845 - 128,179 908,362
Commercial 1,501,196 37,409 179,295 - - 36,122 1,754,022
Credit cards 105,867 41 175 188 10 - 106,281
All other 587,970 16,104 20,263 470 73 2,424 627,304
Total loans $7,845,589 $124,694 $655,085 $8,850 $1,170 $234,923 $8,870,311
========== ======== ======== ====== ====== ======== ==========
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
As of
-----
Dec-11 Sep-11 Jun-11 Mar-11 Dec-10
------ ------ ------ ------ ------
Unpaid principal balance of impaired loans $287,099 $342,839 $374,760 $423,497 $345,377
Cumulative charge-offs on impaired loans 52,176 62,950 71,103 84,676 71,972
------ ------ ------ ------ ------
Impaired nonaccrual loan and lease outstanding balance 234,923 279,889 303,657 338,821 273,405
Other non-accrual loans and leases not impaired 41,875 34,590 27,419 31,905 74,094
------ ------ ------ ------ ------
Total non-accrual loans and leases $276,798 $314,479 $331,076 $370,726 $347,499
======== ======== ======== ======== ========
Allowance for impaired loans 39,708 38,657 46,810 49,419 40,719
------ ------ ------ ------ ------
Nonaccrual loans and leases, net of specific reserves $237,090 $275,822 $284,266 $321,307 $306,780
======== ======== ======== ======== ========
Loans and leases 90+ days past due, still accruing 3,434 7,354 3,980 4,829 8,500
Restructured loans and leases, still accruing 42,018 40,966 44,786 49,472 38,376
------ ------ ------ ------ ------
Total non-performing loans and leases $322,250 $362,799 $379,842 $425,027 $394,375
======== ======== ======== ======== ========
Allowance for impaired loans $39,708 $38,657 $46,810 $49,419 $40,719
Allowance for all other loans and leases 155,410 161,029 150,817 148,914 156,194
------- ------- ------- ------- -------
Total allowance for credit losses $195,118 $199,686 $197,627 $198,333 $196,913
-------- -------- -------- -------- --------
Outstanding balance of impaired loans $234,923 $279,889 $303,657 $338,821 $273,405
Allowance for impaired loans 39,708 38,657 46,810 49,419 40,719
------ ------ ------ ------ ------
Net book value of impaired loans $195,215 $241,232 $256,847 $289,402 $232,686
======== ======== ======== ======== ========
Net book value of impaired loans as a %
of unpaid principal balance 68% 70% 69% 68% 67%
Coverage of other non-accrual loans and leases not impaired by
the allowance for all other loans and leases 371% 466% 550% 467% 211%
Coverage of non-performing loans and leases not impaired
by the allowance for all other loans and leases 178% 194% 198% 173% 129%
BancorpSouth, Inc.
Geographical Information
(Dollars in thousands)
(Unaudited)
Alabama Greater
and Florida Memphis Texas and
Panhandle Arkansas Mississippi Missouri Area Tennessee Louisiana Other Total
--------- -------- ----------- -------- ---- --------- --------- ----- -----
LOAN AND LEASE PORTFOLIO:
Commercial and industrial $63,583 $188,329 $312,364 $51,291 $23,745 $80,094 $258,225 $496,097 $1,473,728
Real estate
Consumer mortgages 111,455 272,857 756,389 56,808 86,576 162,604 427,955 70,546 1,945,190
Home equity 58,991 42,250 174,632 26,930 70,034 76,361 63,298 1,866 514,362
Agricultural 6,354 71,592 71,787 4,047 9,601 13,163 57,836 5,107 239,487
Commercial and industrial-owner occupied 115,133 167,935 455,700 67,055 99,394 98,860 248,107 49,391 1,301,575
Construction, acquisition and development 103,594 80,121 259,551 51,432 98,948 98,865 196,490 19,361 908,362
Commercial 199,844 346,534 352,754 223,849 115,783 101,068 359,989 54,201 1,754,022
Credit cards - - - - - - - 106,281 106,281
All other 29,846 90,905 201,067 4,443 54,846 47,412 89,417 109,368 627,304
Total loans $688,800 $1,260,523 $2,584,244 $485,855 $558,927 $678,427 $1,701,317 $912,218 $8,870,311
======== ========== ========== ======== ======== ======== ========== ======== ==========
CAD PORTFOLIO:
Multi-family construction $ - $ - $11 $1,067 $ - $664 $350 $46 $2,138
One-to-four family construction 27,514 13,127 46,874 7,266 9,593 30,212 31,621 3,620 169,827
Recreation and all other loans 1,685 11,071 31,484 567 2,670 1,075 17,250 1,433 67,235
Commercial construction 12,351 9,321 40,453 2,694 11,364 20,781 30,386 2,774 130,124
Commercial acquisition and development 13,167 19,120 54,052 15,169 31,688 18,534 41,115 4,199 197,044
Residential acquisition and development 48,877 27,482 86,677 24,669 43,633 27,599 75,768 7,289 341,994
Total CAD loans $103,594 $80,121 $259,551 $51,432 $98,948 $98,865 $196,490 $19,361 $908,362
======== ======= ======== ======= ======= ======= ======== ======= ========
NON-PERFORMING LOANS AND LEASES:
Commercial and industrial $2,786 $2,908 $529 $2,004 $521 $196 $2,725 $1,886 $13,555
Real estate
Consumer mortgages 6,257 4,750 15,105 4,296 2,399 6,465 6,564 6,788 52,624
Home equity 485 16 419 - 407 707 - 2 2,036
Agricultural - 315 1,079 1,317 1,307 258 - 1 4,277
Commercial and industrial-owner occupied 8,467 8,129 7,530 4,163 4,889 4,838 3,825 163 42,004
Construction, acquisition and development 24,581 6,397 12,975 14,024 25,923 11,746 39,513 - 135,159
Commercial 7,321 1,028 15,784 23,799 5,238 3,919 4,017 726 61,832
Credit cards - - - - - - - 3,371 3,371
All other 1,596 2,106 812 329 17 1,003 203 1,326 7,392
Total loans $51,493 $25,649 $54,233 $49,932 $40,701 $29,132 $56,847 $14,263 $322,250
======= ======= ======= ======= ======= ======= ======= ======= ========
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
December 31, 2011
-----------------
Alabama Greater
and Florida Memphis Texas and
Panhandle Arkansas Mississippi Missouri Area Tennessee Louisiana Other Total
--------- -------- ----------- -------- ---- --------- --------- ----- -----
OTHER REAL ESTATE OWNED:
Commercial and industrial $436 $17 $ - $ - $940 $ - $ - $ - $1,393
Real estate
Consumer mortgages 3,816 448 3,400 - 5,199 4,160 733 2,889 20,645
Home equity - - 51 - 600 - - - 651
Agricultural 899 - 275 - 4,542 - - - 5,716
Commercial and industrial-owner occupied 1,022 303 1,972 76 2,371 426 174 - 6,344
Construction, acquisition and development 19,318 2,241 18,850 1,974 69,822 6,918 2,763 - 121,886
Commercial 1,121 1,605 3,604 - 7,672 753 232 - 14,987
All other 276 83 220 193 1,358 - 53 - 2,183
Total loans $26,888 $4,697 $28,372 $2,243 $92,504 $12,257 $3,955 $2,889 $173,805
======= ====== ======= ====== ======= ======= ====== ====== ========
Quarter Ended
-------------
Dec-11 Sep-11 Jun-11 Mar-11 Dec-10
------ ------ ------ ------ ------
OTHER REAL ESTATE OWNED:
Balance, beginning of period $162,686 $151,204 $136,412 $133,412 $82,647
Additions to foreclosed properties
New foreclosed property 36,507 29,063 38,199 21,464 62,683
Reductions in foreclosed properties
Sales (16,688) (13,136) (21,135) (13,528) (8,528)
Writedowns (8,700) (4,445) (2,272) (4,936) (3,390)
Balance, end of period $173,805 $162,686 $151,204 $136,412 $133,412
======== ======== ======== ======== ========
FORECLOSED PROPERTY EXPENSE
Loss (Gain) on sale of other real estate owned $711 $16 $(140) $492 $807
Writedown of other real estate owned 8,700 4,445 2,272 4,936 3,390
Other foreclosed property expense 1,422 1,655 1,633 1,654 1,895
Total foreclosed property expense $10,833 $6,116 $3,765 $7,082 $6,092
======= ====== ====== ====== ======
BancorpSouth, Inc.
Noninterest Revenue and Expense
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-11 Sep-11 Jun-11 Mar-11 Dec-10
------ ------ ------ ------ ------
NONINTEREST REVENUE:
Mortgage lending $8,928 $(1,443) $2,003 $7,581 $18,126
Credit card, debit card and
merchant fees 7,783 12,981 11,263 10,346 9,951
Service charges 17,412 17,334 16,556 15,368 16,854
Trust income 3,348 2,854 2,850 3,134 3,072
Securities gains (losses), net 18 2,047 10,045 17 (470)
Insurance commissions 19,416 22,012 22,941 22,549 18,013
Annuity fees 382 552 1,094 1,296 458
Brokerage commissions and fees 1,215 1,627 1,437 1,638 1,436
Bank-owned life insurance 2,007 1,734 2,223 1,699 2,303
Other miscellaneous income 4,826 2,357 4,732 4,683 4,231
Total noninterest revenue $65,335 $62,055 $75,144 $68,311 $73,974
======= ======= ======= ======= =======
NONINTEREST EXPENSE:
Salaries and employee benefits $70,512 $71,851 $70,142 $70,375 $65,980
Occupancy, net of rental income 10,315 11,144 10,232 10,671 10,668
Equipment 5,108 5,346 5,595 5,658 5,459
Deposit insurance assessments 5,674 3,781 6,436 5,425 5,895
Prepayment penalty on FHLB
borrowings - - 9,778 - -
Advertising 1,778 1,140 1,291 889 1,760
Foreclosed property expense 10,833 6,116 3,765 7,082 6,092
Telecommunications 2,110 2,097 2,036 2,143 2,148
Public relations 1,244 1,415 1,554 1,514 1,361
Data processing 2,398 2,614 2,365 2,301 1,428
Computer software 1,892 1,863 1,899 1,848 1,937
Amortization of intangibles 813 823 833 854 950
Legal 3,947 1,586 1,095 2,586 1,872
Postage and shipping 1,163 1,182 1,171 1,297 1,269
Other miscellaneous expense 18,069 19,740 18,877 17,367 16,628
Total noninterest expense $135,856 $130,698 $137,069 $130,010 $123,447
======== ======== ======== ======== ========
INSURANCE COMMISSIONS:
Property and casualty
commissions $14,033 $16,226 $16,527 $13,683 $13,304
Life and health commissions 4,024 4,359 4,301 4,477 3,627
Risk management income 597 703 596 713 617
Other 762 724 1,517 3,676 465
Total insurance commissions $19,416 $22,012 $22,941 $22,549 $18,013
======= ======= ======= ======= =======
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
Quarter Ended
-------------
Dec-11 Sep-11 Jun-11 Mar-11 Dec-10
------ ------ ------ ------ ------
MORTGAGE SERVICING RIGHTS:
Fair value, beginning of
period $29,159 $39,455 $42,306 $38,642 $26,901
Additions to mortgage
servicing rights:
Originations of servicing
assets 3,754 3,127 2,380 2,431 4,725
Changes in fair value:
Due to payoffs/paydowns (1,745) (1,745) (1,390) (1,300) (1,881)
Due to change in valuation
inputs or
assumptions used in the
valuation model (991) (11,676) (3,839) 2,540 8,895
Other changes in fair value (3) (2) (2) (7) 2
Fair value, end of period $30,174 $29,159 $39,455 $42,306 $38,642
======= ======= ======= ======= =======
MORTGAGE LENDING REVENUE:
Production revenue:
Origination $8,308 $8,688 $4,066 $3,224 $7,942
Servicing 3,356 3,290 3,166 3,117 3,170
Payoffs/Paydowns (1,745) (1,745) (1,390) (1,300) (1,881)
------ ------ ------ ------ ------
Total production revenue 9,919 10,233 5,842 5,041 9,231
Market value adjustment (991) (11,676) (3,839) 2,540 8,895
Total mortgage lending revenue $8,928 $(1,443) $2,003 $7,581 $18,126
====== ======= ====== ====== =======
HELD-TO-MATURITY SECURITIES,
at amortized cost
U.S. Government agencies $ - $ - $ - $1,278,185 $1,246,649
Obligations of states and
political subdivisions - - - 389,018 366,370
Total held-to-maturity
securities $ - $ - $ - $1,667,203 $1,613,019
================== =================== ================== ========== ==========
AVAILABLE-FOR-SALE
SECURITIES, at fair value
U.S. Government agencies $1,501,243 $1,497,456 $1,599,231 $459,763 $433,158
Government agency issued
residential
mortgage-back securities 404,610 420,689 430,402 529,302 503,229
Government agency issued
commercial
mortgage-back securities 34,599 34,475 31,627 30,938 29,994
Obligations of states and
political subdivisions 563,520 519,431 486,653 111,380 110,165
Other 9,546 9,504 12,911 14,080 19,516
Total available-for-sale
securities $2,513,518 $2,481,555 $2,560,824 $1,145,463 $1,096,062
========== ========== ========== ========== ==========
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
December 31, 2011
-----------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,022,010 $114,094 5.02%
Available-for-sale securities:
Taxable 2,083,983 11,891 2.26%
Tax-exempt 425,960 6,396 5.96%
Short-term investments 386,405 253 0.26%
------- ---
Total interest earning
assets and revenue 11,918,358 132,634 4.42%
Other assets 1,336,426
Less: allowance for credit
losses (208,005)
Total $13,046,779
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,714,059 $4,737 0.40%
Savings 975,892 746 0.30%
Other time 3,078,376 13,104 1.69%
Short-term borrowings 432,539 95 0.09%
Junior subordinated debt 160,312 2,871 7.11%
Long-term debt 33,500 350 4.15%
------ ---
Total interest bearing
liabilities and expense 9,394,678 21,903 0.92%
Demand deposits -
noninterest bearing 2,248,904
Other liabilities 134,292
Total liabilities 11,777,874
Shareholders' equity 1,268,905
Total $13,046,779
===========
Net interest revenue $110,731
========
Net interest margin 3.69%
Net interest rate spread 3.49%
Interest bearing liabilities to
interest earning assets 78.83%
Net interest tax equivalent adjustment $3,241
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
September 30, 2011
------------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,200,439 $115,605 4.99%
Available-for-sale securities:
Taxable 2,123,772 13,283 2.48%
Tax-exempt 405,710 6,354 6.21%
Short-term investments 309,146 203 0.26%
------- ---
Total interest earning
assets and revenue 12,039,067 135,445 4.46%
Other assets 1,340,797
Less: allowance for credit
losses (205,209)
Total $13,174,655
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,789,462 $5,323 0.44%
Savings 957,871 828 0.34%
Other time 3,246,332 14,837 1.81%
Short-term borrowings 458,199 112 0.10%
Junior subordinated debt 160,312 2,861 7.08%
Long-term debt 34,984 361 4.09%
------ ---
Total interest bearing
liabilities and expense 9,647,160 24,322 1.00%
Demand deposits -
noninterest bearing 2,147,707
Other liabilities 127,973
Total liabilities 11,922,840
Shareholders' equity 1,251,815
Total $13,174,655
===========
Net interest revenue $111,123
========
Net interest margin 3.66%
Net interest rate spread 3.46%
Interest bearing liabilities to
interest earning assets 80.13%
Net interest tax equivalent adjustment $3,048
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
June 30, 2011
-------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,293,831 $118,284 5.10%
Held-to-maturity securities:
Taxable 887,767 5,143 2.32%
Tax-exempt 209,795 3,523 6.74%
Available-for-sale securities:
Taxable 1,432,822 10,485 2.94%
Tax-exempt 176,898 2,879 6.53%
Short-term investments 226,638 160 0.28%
------- ---
Total interest earning
assets and revenue 12,227,751 140,474 4.61%
Other assets 1,350,777
Less: allowance for credit
losses (212,968)
Total $13,365,560
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,977,764 $6,040 0.49%
Savings 941,169 810 0.35%
Other time 3,418,741 16,284 1.91%
Short-term borrowings 425,666 155 0.15%
Junior subordinated debt 160,312 2,860 7.16%
Long-term debt 89,395 1,174 5.27%
------ -----
Total interest bearing
liabilities and expense 10,013,047 27,323 1.09%
Demand deposits -
noninterest bearing 2,018,197
Other liabilities 112,035
Total liabilities 12,143,279
Shareholders' equity 1,222,281
Total $13,365,560
===========
Net interest revenue $113,151
========
Net interest margin 3.71%
Net interest rate spread 3.51%
Interest bearing liabilities to
interest earning assets 81.89%
Net interest tax equivalent adjustment $3,239
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
March 31, 2011
--------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,339,083 $118,648 5.15%
Held-to-maturity securities:
Taxable 1,322,668 8,124 2.49%
Tax-exempt 330,616 5,150 6.32%
Available-for-sale securities:
Taxable 1,014,404 8,585 3.43%
Tax-exempt 70,727 1,267 7.27%
Short-term investments 317,271 253 0.32%
------- ---
Total interest earning
assets and revenue 12,394,769 142,026 4.65%
Other assets 1,363,101
Less: allowance for credit
losses (218,107)
--------
Total $13,539,763
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $5,153,063 $6,546 0.52%
Savings 897,312 826 0.37%
Other time 3,553,543 17,483 2.00%
Short-term borrowings 433,743 193 0.18%
Junior subordinated debt 160,312 2,859 7.23%
Long-term debt 110,000 1,484 5.47%
------- -----
Total interest bearing
liabilities and expense 10,307,973 29,391 1.16%
Demand deposits -
noninterest bearing 1,893,720
Other liabilities 118,671
Total liabilities 12,320,364
Shareholders' equity 1,219,399
Total $13,539,763
===========
Net interest revenue $112,635
========
Net interest margin 3.69%
Net interest rate spread 3.49%
Interest bearing liabilities to
interest earning assets 83.16%
Net interest tax equivalent adjustment $3,199
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended
December 31, 2010
-----------------
Average Yield/
(Taxable equivalent basis) Balance Interest Rate
------- -------- ----
ASSETS
Loans, loans held for sale,
and leases net of unearned
income $9,509,949 $123,491 5.15%
Held-to-maturity securities:
Taxable 1,154,939 8,600 2.95%
Tax-exempt 281,283 4,542 6.41%
Available-for-sale securities:
Taxable 923,085 7,836 3.37%
Tax-exempt 72,921 1,254 6.82%
Short-term investments 568,528 391 0.27%
------- ---
Total interest earning
assets and revenue 12,510,705 146,114 4.63%
Other assets 1,263,611
Less: allowance for credit
losses (215,278)
Total $13,559,038
===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Demand - interest bearing $4,740,734 $7,462 0.62%
Savings 831,805 891 0.42%
Other time 3,745,046 19,827 2.10%
Short-term borrowings 623,862 275 0.17%
Junior subordinated debt 160,312 2,864 7.09%
Long-term debt 110,000 1,485 5.36%
------- -----
Total interest bearing
liabilities and expense 10,211,759 32,804 1.27%
Demand deposits -
noninterest bearing 1,975,318
Other liabilities 146,447
Total liabilities 12,333,524
Shareholders' equity 1,225,514
Total $13,559,038
===========
Net interest revenue $113,310
========
Net interest margin 3.59%
Net interest rate spread 3.36%
Interest bearing liabilities to
interest earning assets 81.62%
Net interest tax equivalent adjustment $3,057
BancorpSouth, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in thousands)
(Unaudited)
Reconciliation of Tangible Assets and Tangible Shareholders' Equity to
Total Assets and Total Shareholders' Equity (a):
December 31, September 30,
------------ -------------
2011 2010 2011
---- ---- ----
Tangible assets
Total assets $12,995,851 $13,615,010 $13,198,518
Less: Goodwill 271,297 270,097 271,297
Other identifiable
intangible assets 16,613 19,624 17,426
Total tangible assets $12,707,941 $13,325,289 $12,909,795
Tangible shareholders' equity
Total shareholders' equity $1,262,912 $1,222,244 $1,266,753
Less: Goodwill 271,297 270,097 271,297
Other identifiable
intangible assets 16,613 19,624 17,426
Total tangible shareholders' equity $975,002 $932,523 $978,030
Tangible shareholders' equity to tangible
assets 7.67% 7.00% 7.58%
(a) BancorpSouth, Inc. utilizes the ratio of tangible shareholders'
equity to tangible assets when
evaluating the performance of the Company. Tangible
shareholders' equity is defined by the
Company as total shareholders' equity less goodwill and other
identifiable intangible assets.
Tangible assets are defined by the Company as total assets less
goodwill and other identifiable
intangible assets. Management believes the ratio of tangible
shareholders' equity to tangible assets
is important to investors who are interested in evaluating the
adequacy of the Company's capital levels.
SOURCE BancorpSouth, Inc.
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