EXHIBIT 99.1

News Release

 

 

Contact:
William L. Prater		Will Fisackerly
Treasurer and Chief Financial Officer		First Vice President and Director of Investor Relations
662/680-2000		662/680-2475

BancorpSouth Announces First Quarter 2012 Earnings of

$22.9 Million or $0.25 per Diluted Share

TUPELO, Miss., April 23, 2012/PRNewswire-FirstCall via COMTEX/ — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended March 31, 2012. The Company reported net income of $22.9 million, or $0.25 per diluted share, for the first quarter of 2012 compared with a net loss of $0.5 million, or $0.01 per diluted share, for the first quarter of 2011 and net income of $13.3 million, or $0.16 per diluted share, for the fourth quarter of 2011.

“Our results for the first quarter reflect our highest level of quarterly earnings in over two years,” remarked Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth. “We are also pleased to report additional meaningful improvement in asset quality. Earnings for the quarter reflect decreases in credit costs as a result of asset quality improvement as well as another exceptional quarter for our noninterest revenue lines of business, particularly our mortgage operation.”

Earnings for the quarter benefited from a reduction in the provision for credit losses to $10.0 million compared to $53.5 million for the first quarter of 2011 and $19.3 million for the fourth quarter of 2011. Non-performing loans (“NPLs”) declined $37.0 million, or 11.5 percent, during the first quarter of 2012 to $285.2 million at March 31, 2012 compared with $322.3 million at December 31, 2011. NPLs have declined $139.8 million, or 32.9 percent, from $425.0 million at March 31, 2011. In addition, gross nonaccrual loan formation was $40.4 million for the first quarter of 2012 compared to $111.2 million for the first quarter of 2011 and $39.5 million for the fourth quarter of 2011. Total loans 30 – 89 days past due decreased during the first quarter of 2012 to $29.0 million at March 31, 2012 from $37.5 million at December 31, 2011. Net charge-offs decreased $0.5 million, or 2.0 percent, to $23.3 million for the first quarter of 2012 compared with $23.8 million for the fourth quarter of 2011. Net charge-offs during the first quarter of 2012 included $15.4 million of charge-offs of loans which had been impaired and reserved for in prior quarters.

Patterson added, “We continue to benefit from solid results produced by our noninterest revenue lines of business. Our mortgage business generated $395.1 million of new loans during the first quarter and contributed $15.1 million of revenue including a positive mortgage servicing rights (“MSR”) valuation adjustment of $3.7 million. Also, our insurance group produced organic growth on both a comparable and sequential quarter basis.”

 

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Box 789 Tupelo, MS 38802-0789 (662) 680-2000

is a financial holding company.

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BXS Announces First Quarter Results

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April 23, 2012

 

Net Interest Revenue

Net interest revenue was $105.6 million for the first quarter of 2012, a decrease of 3.5 percent from $109.4 million for the first quarter of 2011 and a decrease of 1.8 percent from $107.5 million for the fourth quarter of 2011. The fully taxable equivalent net interest margin was 3.66 percent for the first quarter of 2012 compared with 3.69 percent for both the first and fourth quarters of 2011.

Asset, Deposit and Loan Activity

Total assets were $13.3 billion at March 31, 2012 compared with $13.5 billion at March 31, 2011. Total deposits were $11.1 billion at March 31, 2012, a decrease of 3.3 percent from $11.5 billion at March 31, 2011. Loans and leases, net of unearned income, were $8.7 billion at March 31, 2012, a decrease of 5.5 percent from $9.2 billion at March 31, 2011.

The construction, acquisition, and development (“CAD”) loan portfolio, which decreased $259.2 million, or 23.2 percent, from March 31, 2011 to March 31, 2012, accounted for 54.5 percent of the decline in net loans and leases over the same time period. Excluding the impact of the CAD loan portfolio, net loans and leases declined $216.7 million, or 2.7 percent, during this period.

Patterson added, “Deposit balances at the end of the first quarter of 2012 compared to the end of the first quarter of 2011 reflect a shift from time deposits and interest bearing demand deposits to savings and noninterest bearing demand deposits.” Time deposits, which decreased $623.0 million, or 17.9 percent, during this period, were offset partially by significant growth in noninterest bearing demand deposits, which increased $232.0 million, or 11.4 percent, over the period. Additionally, savings deposits increased $134.7 million, or 14.4 percent, while interest bearing demand deposits decreased $125.5 million, or 2.5 percent, over the period. As of March 31, 2012, approximately $1.1 billion of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 1.02 percent.

Provision for Credit Losses and Allowance for Credit Losses

For the first quarter of 2012, the provision for credit losses was $10.0 million, compared with $53.5 million for the first quarter of 2011 and $19.3 million for the fourth quarter of 2011. The decrease in the provision for credit losses reflects 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, decreased past due balances and lower net charge-offs.

Net charge-offs for the first quarter of 2012 were $23.3 million, compared with $52.1 million for the first quarter of 2011 and $23.8 million for the fourth quarter of 2011. Recoveries increased to $5.5 million for the first quarter of 2012, compared with $1.7 million for the first quarter of

 

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2011 and $2.6 million for the fourth quarter of 2011. Annualized net charge-offs were 1.06 percent of average loans and leases for the first quarter of 2012, compared with 2.24 percent for the first quarter of 2011 and 1.06 percent for the fourth quarter of 2011.

NPLs were $285.2 million, or 3.26 percent of net loans and leases, at March 31, 2012 compared with $425.0 million, or 4.61 percent of net loans and leases, at March 31, 2011 and $322.3 million, or 3.63 percent of net loans and leases, at December 31, 2011. The allowance for credit losses was $181.8 million, or 2.08 percent of net loans and leases, at March 31, 2012 compared with $198.3 million, or 2.15 percent of net loans and leases, at March 31, 2011 and $195.1 million, or 2.20 percent of net loans and leases, at December 31, 2011. Patterson added, “The first quarter reduction in the allowance for credit losses was driven primarily by charge-offs of $15.4 million associated with loans that had been identified and reported as impaired and were reserved for in previous quarters.”

NPLs at March 31, 2012 consisted primarily of $253.2 million of nonaccrual loans, compared with $276.8 million of nonaccrual loans at December 31, 2011. Included in the reduction of nonaccrual loans during the first quarter of 2012 were payments received on nonaccrual loans of $20.6 million. NPLs at March 31, 2012 also included $1.7 million of loans 90 days or more past due and still accruing, compared with $3.4 million at December 31, 2011, and included restructured loans still accruing of $30.3 million at March 31, 2012, compared with $42.0 million at December 31, 2011. Loans and leases 30 to 89 days past due were $29.0 million at March 31, 2012 compared with $37.5 million at December 31, 2011.

At March 31, 2012, $76.3 million of NPLs were residential CAD loans, $45.1 million were other CAD loans, $46.8 million were commercial real estate loans and $52.2 million were consumer mortgages. NPLs from all other loan types totaled $64.8 million at March 31, 2012. Included in nonaccrual loans at March 31, 2012 were $137.5 million of loans, or 54.3 percent of total nonaccrual loans, that were paying as agreed, compared with $141.2 million, or 51.0 percent, at the end of the fourth quarter of 2011. 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 disposition value of the collateral.

At the end of the first quarter, 83.4 percent of nonaccrual loans were determined to be collateral dependent, and after write-downs and specific reserves, the remaining book balance of these loans was 69.6 percent of the unpaid principal balance. At March 31, 2012, 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 211 percent.

Other real estate owned (“OREO”) decreased $6.0 million to $167.8 million during the first quarter of 2012. This decrease reflected $10.8 million added through foreclosure, offset by sales of other real estate owned of $11.8 million. OREO sales were $16.7 million for the fourth quarter of 2011. Write-downs in the value of existing properties were $5.0 million for the first quarter of 2012, representing a decrease of $3.7 million from $8.7 million for the fourth quarter

 

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of 2011. Sales of OREO during the first quarter of 2012 resulted in no material net gain or loss, consistent with the fourth quarter of 2011. At March 31, 2012, OREO was carried at 52.4 percent of the aggregate loan balances at the time of foreclosure, compared with 54.5 percent at December 31, 2011.

Noninterest Revenue

Noninterest revenue was $72.4 million for the first quarter of 2012, compared with $68.3 million for the first quarter of 2011 and $65.3 million for the fourth quarter of 2011. These results included positive MSR valuation adjustments of $3.7 million and $2.5 million for the first quarters of 2012 and 2011, respectively, and a negative MSR valuation adjustment of $1.0 million for the fourth quarter of 2011.

Excluding the MSR valuation adjustments, net mortgage lending revenue was $11.4 million for the first quarter of 2012, compared with $5.0 million for the first quarter of 2011 and $9.9 million for the fourth quarter of 2011. Mortgage origination volume for the first quarter of 2012 was $395.1 million, compared with $202.8 million for the first quarter of 2011 and $389.6 million for the fourth quarter of 2011.

Credit and debit card fees decreased $2.8 million, or 27.3 percent, for the first quarter of 2012 from the first quarter of 2011 and decreased $0.3 million, or 3.3 percent, from the fourth quarter of 2011. Service charges were essentially flat for the comparable quarters and declined $2.3 million, or 13.2 percent, on a sequential quarter basis. Insurance commissions rose $0.6 million, or 2.7 percent, for the comparable quarters and increased $3.7 million, or 19.3 percent, on a sequential quarter basis.

Noninterest Expense

Noninterest expense for the first quarter of 2012 was $135.7 million, compared with $130.0 million for the first quarter of 2011 and $135.9 million for the fourth quarter of 2011. Salaries and employee benefits expense increased to $74.9 million for the first quarter of 2012 from $70.4 million for the first quarter of 2011 and $70.5 million for the fourth quarter of 2011. This is attributable primarily to increases in FICA taxes, employee benefits and incentive compensation. Foreclosed property expense increased to $8.4 million for the first quarter of 2012 from $7.1 million for the first quarter of 2011 and declined from $10.8 million for the fourth quarter of 2011. Deposit insurance assessments were flat at $5.4 million on a comparable quarter basis and decreased on a sequential quarter basis from $5.7 million for the fourth 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 13.13 percent at March 31, 2012 and total risk based capital of 14.39 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

 

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to 10.46 percent at March 31, 2012, compared with 8.94 percent at March 31, 2011 and 9.72 percent at December 31, 2011. The ratio of tangible shareholders’ equity to tangible assets increased to 8.49 percent at March 31, 2012, compared with 6.95 percent at March 31, 2011 and 7.67 percent at December 31, 2011.

On January 24, 2012, the Company completed an underwritten public offering of 10,952,381 shares of Company common stock at a public offering price of $10.50 per share. The gross proceeds from the offering, before expenses, were $109.3 million. Offering expenses were approximately $575,000. The proceeds from the offering have been and will be used by the Company for general corporate purposes, including to maintain certain capital levels and liquidity at the Company, potentially provide equity capital to BancorpSouth Bank, fund growth either organically or through acquisition of other financial institutions, insurance agencies, or other businesses that are closely aligned to the operations of the Company, and fund investments in its subsidiaries. The impact of this offering is reflected in the financial statements as of and for the quarter ended March 31, 2012.

Summary

Patterson concluded, “Our first quarter results are reflective of the significant improvement in asset quality achieved over the past several quarters as well as a continued focus on organic growth in our noninterest revenue lines of business. The results reported for these lines of business continue to support our belief that they differentiate our Company from many of our peers. Over the past several quarters, significant efforts have been focused on asset quality improvement. Although continuing to improve asset quality is certainly still the top priority, we recognize the importance of focusing on quality loan production and improving efficiency. While we are encouraged by recent economic trends, we remain cautious about the prospects of significant near-term growth given the competitive landscape and subdued loan demand.

“BancorpSouth is focused on customer service and relationships. Our Company has been built on providing a comprehensive range of financial products including a wide array of deposit and loan offerings, mortgage lending, insurance, trust, and many other products and services. We have continued to work to strengthen relationships with existing clients and to develop relationships with new customers. We believe that our company is positioned to achieve long-term growth and increased shareholder value as the economic cycle improves.”

Conference Call

BancorpSouth will conduct a conference call to discuss its first quarter 2012 results on April 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,

 

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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 use of proceeds from the public offering of our common stock, our differentiation from many of our peers because of our noninterest revenue lines of business, our ability to achieve 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 ongoing debt crisis and the downgrade of the sovereign credit ratings for various nations, the adequacy of the Company’s provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company’s other real estate owned, limitations on the Company’s ability to declare and pay dividends, the impact of legal or administrative proceedings, 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 impact of regulations on service charges on the Company’s core deposit accounts, the susceptibility of the Company’s business to local economic 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 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, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company’s growth strategy, interruptions or breaches in the Company’s information system security, the failure of certain third party vendors to perform, 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 effectiveness of the Company’s internal controls, other factors generally understood to affect the financial results of financial services companies and other factors detailed from time to time in the Company’s press releases and filings with the Securities and Exchange Commission.

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.3 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 290 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri and Tennessee, including an insurance location in Illinois.

 

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BancorpSouth, Inc.

Selected Financial Data

 

		Three Months Ended March 31,
		2012				2011
(Dollars in thousands, except per share amounts)
Earnings Summary:
Net interest revenue		$	105,610			$	109,437
Provision for credit losses			10,000				53,479
Noninterest revenue			72,360				68,311
Noninterest expense			135,680				130,010
Income (loss) before income taxes			32,290				(5,741	)
Income tax provision (benefit)			9,424				(5,247	)
Net income (loss)		$	22,866			$	(494	)
Earnings (loss) per share: Basic		$	0.25			$	(0.01	)
Diluted		$	0.25			$	(0.01	)
Balance sheet data at March 31:
Total assets		$	13,307,572			$	13,547,238
Total earning assets			12,087,427				12,335,690
Loans and leases, net of unearned income			8,737,923				9,213,836
Allowance for credit losses			181,777				198,333
Total deposits			11,082,322				11,464,114
Common shareholders’ equity			1,392,199				1,211,061
Book value per share			14.74				14.51
Average balance sheet data:
Total assets		$	13,088,358			$	13,539,763
Total earning assets			11,964,721				12,394,769
Loans and leases, net of unearned interest			8,791,542				9,299,984
Total deposits			11,043,952				11,497,638
Common shareholders’ equity			1,363,709				1,219,399
Non-performing assets at March 31:
Non-accrual loans and leases		$	253,227			$	370,726
Loans and leases 90+ days past due, still accruing			1,698				4,829
Restructured loans and leases, still accruing			30,311				49,472
Other real estate owned			167,808				136,412
Total non-performing assets			453,044				561,439
Net charge-offs as a percentage of average loans (annualized)			1.06	%			2.24	%
Performance ratios (annualized):
Return on average assets			0.70	%			(0.01	%)
Return on common equity			6.74	%			(0.16	%)
Total shareholders’ equity to total assets			10.46	%			8.94	%
Tangible shareholders’ equity to tangible assets			8.49	%			6.95	%
Net interest margin			3.66	%			3.69	%
Average shares outstanding - basic			91,727,524				83,448,935
Average shares outstanding - diluted			91,769,863				83,448,935
Cash dividends per share		$	0.01			$	0.11
Tier I capital			13.13	%			10.65	%
Total capital			14.39	%			11.92	%
Tier I leverage capital			9.85	%			8.01	%

 

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BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

 

		Mar-12				Dec-11				Sep-11				Jun-11				Mar-11
		(Dollars in thousands)
Assets
Cash and due from banks		$	184,441			$	195,681			$	161,876			$	166,761			$	146,989
Interest bearing deposits with other banks			665,675				303,663				338,250				304,344				102,312
Held-to-maturity securities, at amortized cost			—				—				—				—				1,667,203
Available-for-sale securities, at fair value			2,573,535				2,513,518				2,481,555				2,560,824				1,145,463
Federal funds sold and securities purchased under agreement to resell			—				—				—				—				150,000
Loans and leases			8,777,538				8,911,258				9,096,928				9,255,879				9,255,609
Less: Unearned income			39,615				40,947				41,023				41,326				41,773
Allowance for credit losses			181,777				195,118				199,686				197,627				198,333
Net loans and leases			8,556,146				8,675,193				8,856,219				9,016,926				9,015,503
Loans held for sale			110,294				83,458				100,687				70,519				56,876
Premises and equipment, net			321,720				323,383				323,285				328,075				329,862
Accrued interest receivable			50,008				51,266				53,338				55,525				61,105
Goodwill			271,297				271,297				271,297				271,297				271,297
Bank owned life insurance			202,698				200,085				197,945				197,028				194,988
Other real estate owned			167,808				173,805				162,686				151,204				136,412
Other assets			203,950				204,502				251,380				244,547				269,228
Total Assets		$	13,307,572			$	12,995,851			$	13,198,518			$	13,367,050			$	13,547,238
Liabilities
Deposits:
Demand: Noninterest bearing		$	2,260,012			$	2,269,799			$	2,198,535			$	2,096,655			$	2,027,990
Interest bearing			4,897,585				4,706,825				4,736,858				4,939,553				5,023,073
Savings			1,067,256				991,702				968,277				944,993				932,574
Other time			2,857,469				2,986,863				3,159,563				3,327,262				3,480,477
Total deposits			11,082,322				10,955,189				11,063,233				11,308,463				11,464,114
Federal funds purchased and securities sold under agreement to repurchase			401,089				373,933				449,501				426,097				421,782
Short-term Federal Home Loan Bank borrowings and other short-term borrowing			1,500				1,500				1,500				703				2,715
Accrued interest payable			7,652				8,644				10,017				11,348				13,238
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				33,500				35,000				110,000
Other liabilities			228,998				199,861				213,702				178,424				164,016
Total Liabilities			11,915,373				11,732,939				11,931,765				12,120,347				12,336,177
Shareholders’ Equity
Common stock			236,090				208,709				208,722				208,722				208,704
Capital surplus			309,426				227,567				227,006				226,362				225,597
Accumulated other comprehensive income (loss)			(4,136	)			(2,261	)			14,595				6,289				(16,579	)
Retained earnings			850,819				828,897				816,430				805,330				793,339
Total Shareholders’ Equity			1,392,199				1,262,912				1,266,753				1,246,703				1,211,061
Total Liabilities & Shareholders’ Equity		$	13,307,572			$	12,995,851			$	13,198,518			$	13,367,050			$	13,547,238

 

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BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

 

		Mar-12				Dec-11				Sep-11				Jun-11				Mar-11
		(Dollars in thousands)
Assets
Cash and due from banks		$	160,827			$	151,004			$	148,409			$	151,194			$	156,329
Interest bearing deposits with other banks			603,714				384,231				309,146				187,901				167,271
Held-to-maturity securities, at amortized cost			—				—				—				1,097,562				1,653,284
Available-for-sale securities, at fair value			2,507,941				2,509,943				2,529,482				1,609,720				1,085,131
Federal funds sold and securities purchased under agreement to resell			274				2,174				—				38,736				150,000
Loans and leases			8,832,104				8,995,035				9,179,730				9,291,434				9,342,939
Less: Unearned income			40,562				40,806				41,316				42,307				42,954
Allowance for credit losses			202,158				208,005				205,209				212,968				218,107
Net loans and leases			8,589,384				8,746,224				8,933,205				9,036,159				9,081,878
Loans held for sale			61,250				67,781				62,025				44,704				39,098
Premises and equipment, net			322,641				322,544				326,800				328,829				330,920
Accrued interest receivable			47,512				49,256				53,122				54,570				58,450
Goodwill			271,297				271,297				271,297				271,297				270,510
Bank owned life insurance			11,204				14,558				14,642				14,189				13,217
Other real estate owned			170,924				164,841				152,052				138,827				129,781
Other assets			341,390				362,926				374,475				391,872				403,894
Total Assets		$	13,088,358			$	13,046,779			$	13,174,655			$	13,365,560			$	13,539,763
Liabilities
Deposits:
Demand: Noninterest bearing		$	2,139,371			$	2,248,904			$	2,147,707			$	2,018,197			$	1,893,720
Interest bearing			4,960,060				4,714,059				4,789,462				4,977,764				5,153,063
Savings			1,027,611				975,892				957,871				941,169				897,312
Other time			2,916,910				3,078,376				3,246,332				3,418,741				3,553,543
Total deposits			11,043,952				11,017,231				11,141,372				11,355,871				11,497,638
Federal funds purchased and securities sold under agreement to repurchase			358,124				430,968				457,640				423,949				430,930
Short-term Federal Home Loan Bank borrowings and other short-term borrowing			1,500				1,500				486				1,641				2,719
Accrued interest payable			9,392				10,617				12,108				13,558				14,873
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				34,984				89,395				110,000
Other liabilities			117,869				123,746				115,938				98,553				103,892
Total Liabilities			11,724,649				11,777,874				11,922,840				12,143,279				12,320,364
Shareholders’ Equity
Common stock			231,276				208,722				208,722				208,715				208,704
Capital surplus			294,973				227,201				226,582				225,912				225,162
Accumulated other comprehensive income (loss)			(2,269	)			8,927				6,379				(10,040	)			(14,346	)
Retained earnings			839,729				824,055				810,132				797,694				799,879
Total Shareholders’ Equity			1,363,709				1,268,905				1,251,815				1,222,281				1,219,399
Total Liabilities & Shareholders’ Equity		$	13,088,358			$	13,046,779			$	13,174,655			$	13,365,560			$	13,539,763

 

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BXS Announces First Quarter Results

Page 10

April 23, 2012

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

 

		Quarter Ended
		Mar-12				Dec-11				Sep-11				Jun-11				Mar-11
INTEREST REVENUE:
Loans and leases		$	109,012			$	112,566			$	114,260			$	116,892			$	117,358
Deposits with other banks			401				252				203				124				122
Federal funds sold and securities purchased under agreement to resell			—				1				—				35				131
Held-to-maturity securities:
Taxable			—				—				—				5,066				8,014
Tax-exempt			—				—				—				2,291				3,347
Available-for-sale securities:
Taxable			11,162				11,781				13,172				10,451				8,585
Tax-exempt			4,256				4,158				4,130				1,871				824
Loans held for sale			544				635				632				505				447
Total interest revenue			125,375				129,393				132,397				137,235				138,828
INTEREST EXPENSE:
Interest bearing demand			4,449				4,737				5,324				6,039				6,546
Savings			714				747				828				810				826
Other time			11,291				13,104				14,837				16,285				17,483
Federal funds purchased and securities sold under agreement to repurchase			63				76				95				135				152
FHLB borrowings			367				367				375				1,194				1,523
Junior subordinated debt			2,879				2,871				2,861				2,860				2,859
Other			2				2				2				—				2
Total interest expense			19,765				21,904				24,322				27,323				29,391
Net interest revenue			105,610				107,489				108,075				109,912				109,437
Provision for credit losses			10,000				19,250				25,112				32,240				53,479
Net interest revenue, after provision for credit losses			95,610				88,239				82,963				77,672				55,958
NONINTEREST REVENUE:
Mortgage lending			15,142				8,928				(1,443	)			2,003				7,581
Credit card, debit card and merchant fees			7,523				7,783				12,981				11,263				10,346
Service charges			15,116				17,412				17,334				16,556				15,368
Trust income			2,282				3,348				2,854				2,850				3,134
Security gains, net			74				18				2,047				10,045				17
Insurance commissions			23,153				19,416				22,012				22,941				22,549
Other			9,070				8,430				6,270				9,486				9,316
Total noninterest revenue			72,360				65,335				62,055				75,144				68,311
NONINTEREST EXPENSE:
Salaries and employee benefits			74,931				70,512				71,851				70,142				70,375
Occupancy, net of rental income			10,066				10,315				11,144				10,232				10,671
Equipment			5,333				5,108				5,346				5,595				5,658
Deposit insurance assessments			5,383				5,674				3,781				6,436				5,425
Prepayment penalty on FHLB borrowings			—				—				—				9,778				—
Other			39,967				44,247				38,576				34,886				37,881
Total noninterest expenses			135,680				135,856				130,698				137,069				130,010
Income (loss) before income taxes			32,290				17,718				14,320				15,747				(5,741	)
Income tax expense (benefit)			9,424				4,415				2,386				2,921				(5,247	)
Net income (loss)		$	22,866			$	13,303			$	11,934			$	12,826			$	(494	)
Net income (loss) per share: Basic		$	0.25			$	0.16			$	0.14			$	0.15			$	(0.01	)
Diluted		$	0.25			$	0.16			$	0.14			$	0.15			$	(0.01	)

 

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BXS Announces First Quarter Results

Page 11

April 23, 2012

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Mar-12				Dec-11				Sep-11				Jun-11				Mar-11
LOAN AND LEASE PORTFOLIO:
Commercial and industrial		$	1,441,727			$	1,473,728			$	1,503,391			$	1,526,686			$	1,484,223
Real estate
Consumer mortgages			1,937,997				1,945,190				1,966,124				1,971,499				1,958,367
Home equity			501,331				514,362				523,030				531,787				531,406
Agricultural			256,683				239,487				249,715				255,310				250,393
Commercial and industrial-owner occupied			1,287,542				1,301,575				1,329,644				1,366,734				1,316,824
Construction, acquisition and development			858,110				908,362				976,694				1,060,675				1,117,335
Commercial real estate			1,742,001				1,754,022				1,772,003				1,764,648				1,831,226
Credit cards			100,527				106,281				103,232				101,955				100,732
All other			612,005				627,304				632,072				635,259				623,330
Total loans		$	8,737,923			$	8,870,311			$	9,055,905			$	9,214,553			$	9,213,836
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period		$	195,118			$	199,686			$	197,627			$	198,333			$	196,913
Loans and leases charged off:
Commercial and industrial			(4,272	)			(1,677	)			(1,295	)			(5,556	)			(8,809	)
Real estate
Consumer mortgages			(4,216	)			(2,953	)			(2,344	)			(1,629	)			(3,260	)
Home equity			(851	)			(1,667	)			(1,712	)			(1,391	)			(1,082	)
Agricultural			(96	)			(110	)			(2,345	)			(373	)			(592	)
Commercial and industrial-owner occupied			(3,868	)			(1,136	)			(4,222	)			(3,228	)			(1,716	)
Construction, acquisition and development			(11,394	)			(10,539	)			(7,697	)			(16,783	)			(32,343	)
Commercial real estate			(2,809	)			(6,858	)			(4,467	)			(1,597	)			(4,514	)
Credit cards			(562	)			(706	)			(760	)			(725	)			(881	)
All other			(758	)			(794	)			(770	)			(4,971	)			(553	)
Total loans charged off			(28,826	)			(26,440	)			(25,612	)			(36,253	)			(53,750	)
Recoveries:
Commercial and industrial			1,542				446				348				589				184
Real estate
Consumer mortgages			323				263				485				220				143
Home equity			315				43				51				46				45
Agricultural			10				76				—				45				2
Commercial and industrial-owner occupied			351				100				99				21				173
Construction, acquisition and development			2,155				971				923				1,493				564
Commercial real estate			383				340				300				392				13
Credit cards			118				168				141				239				255
All other			288				215				212				262				312
Total recoveries			5,485				2,622				2,559				3,307				1,691
Net charge-offs			(23,341	)			(23,818	)			(23,053	)			(32,946	)			(52,059	)
Provision charged to operating expense			10,000				19,250				25,112				32,240				53,479
Balance, end of period		$	181,777			$	195,118			$	199,686			$	197,627			$	198,333
Average loans for period		$	8,791,542			$	8,954,229			$	9,138,414			$	9,249,127			$	9,300,029
Ratio:
Net charge-offs to average loans (annualized)			1.06	%			1.06	%			1.01	%			1.42	%			2.24	%

 

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BXS Announces First Quarter Results

Page 12

April 23, 2012

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Mar-12				Dec-11				Sep-11				Jun-11				Mar-11
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial		$	11,025			$	12,260			$	11,122			$	9,337			$	14,655
Real estate
Consumer mortgages			46,562				47,878				44,100				34,174				36,025
Home equity			2,687				2,036				2,634				1,232				1,543
Agricultural			4,254				4,179				6,254				8,526				7,597
Commercial and industrial-owner occupied			32,842				33,112				26,977				26,387				24,638
Construction, acquisition and development			115,649				133,110				171,566				200,434				224,847
Commercial real estate			35,715				40,616				49,500				48,571				58,945
Credit cards			509				594				551				546				617
All other			3,984				3,013				1,775				1,869				1,859
Total nonaccrual loans and leases		$	253,227			$	276,798			$	314,479			$	331,076			$	370,726
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and industrial		$	10			$	12			$	1,846			$	118			$	501
Real estate
Consumer mortgages			1,314				2,974				4,136				2,482				3,152
Home equity			—				—				134				242				139
Agricultural			—				—				131				—				7
Commercial and industrial-owner occupied			—				—				42				—				255
Construction, acquisition and development			—				—				290				432				19
Commercial real estate			—				—				106				19				7
Credit cards			228				299				257				299				240
All other			146				149				412				388				509
Total loans and leases 90+ days past due, still accruing			1,698				3,434				7,354				3,980				4,829
Restructured Loans and Leases, Still Accruing			30,311				42,018				40,966				44,786				49,472
Total non-performing loans and leases			285,236				322,250				362,799				379,842				425,027
OTHER REAL ESTATE OWNED:			167,808				173,805				162,686				151,204				136,412
Total Non-performing Assets		$	453,044			$	496,055			$	525,485			$	531,046			$	561,439
Additions to Nonaccrual Loans and Leases During the Quarter		$	40,392			$	39,474			$	60,799			$	50,427			$	111,241
Loans and Leases 30-89 Days Past Due, Still Accruing:
Commercial and industrial		$	4,809			$	8,065			$	9,759			$	7,903			$	8,407
Real estate
Consumer mortgages			10,736				15,864				20,144				18,621				17,136
Home equity			2,248				2,037				2,066				2,916				2,492
Agricultural			663				339				1,485				2,901				818
Commercial and industrial-owner occupied			3,332				2,154				7,348				2,786				4,369
Construction, acquisition and development			2,431				2,714				4,469				4,939				8,047
Commercial real estate			2,104				3,292				5,136				4,091				7,090
Credit cards			686				802				851				785				969
All other			1,983				2,280				2,832				3,005				2,192
Total Loans and Leases 30-89 days past due, still accruing		$	28,992			$	37,547			$	54,090			$	47,947			$	51,520
Credit Quality Ratios:
Provision for credit losses to average loans and leases (annualized)			0.45	%			0.86	%			1.10	%			1.39	%			2.30	%
Allowance for credit losses to net loans and leases			2.08	%			2.20	%			2.21	%			2.14	%			2.15	%
Allowance for credit losses to non-performing assets			40.12	%			39.33	%			38.00	%			37.21	%			35.33	%
Allowance for credit losses to non-performing loans and leases			63.73	%			60.55	%			55.04	%			52.03	%			46.66	%
Non-performing loans and leases to net loans and leases			3.26	%			3.63	%			4.01	%			4.12	%			4.61	%
Non-performing assets to net loans and leases			5.18	%			5.59	%			5.80	%			5.76	%			6.09	%

 

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BXS Announces First Quarter Results

Page 13

April 23, 2012

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Mar-12				Dec-11				Sep-11				Jun-11				Mar-11
REAL ESTATE CONSTRUCTION, ACQUISITION AND DEVELOPMENT (“CAD”) PORTFOLIO:
Outstanding Balance
Multi-family construction		$	4,683			$	2,138			$	10,349			$	19,116			$	21,051
One-to-four family construction			159,281				169,827				181,445				198,809				212,435
Recreation and all other loans			63,407				67,235				61,084				66,366				63,686
Commercial construction			122,173				130,124				140,570				160,834				155,402
Commercial acquisition and development			191,783				197,044				206,516				222,460				244,950
Residential acquisition and development			316,783				341,994				376,730				393,090				419,811
Total outstanding balance		$	858,110			$	908,362			$	976,694			$	1,060,675			$	1,117,335
Nonaccrual CAD Loans
Multi-family construction		$	—			$	1,067			$	—			$	9,174			$	8,352
One-to-four family construction			11,953				14,690				17,937				24,537				33,570
Recreation and all other loans			386				436				712				774				708
Commercial construction			3,702				5,235				10,159				16,618				20,889
Commercial acquisition and development			23,464				23,968				31,862				37,207				47,200
Residential acquisition and development			76,144				87,714				110,896				112,124				114,128
Total nonaccrual CAD loans			115,649				133,110				171,566				200,434				224,847
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			—				—				—				—				—
Commercial acquisition and development			—				—				—				—				—
Residential acquisition and development			—				—				79				430				17
Total CAD loans 90+ days past due, still accruing			—				—				290				432				19
Restructured CAD Loans, Still Accruing
Multi-family construction			—				—				—				—				—
One-to-four family construction			799				318				321				1,697				113
Recreation and all other loans			847				852				24				24				—
Commercial construction			977				—				—				—				—
Commercial acquisition and development			2,975				433				1,415				1,415				834
Residential acquisition and development			106				446				410				2,274				3,408
Total restructured CAD loans, still accruing			5,704				2,049				2,170				5,410				4,355
Total Non-performing CAD loans		$	121,353			$	135,159			$	174,026			$	206,276			$	229,221
CAD NPL as a % of Outstanding CAD Balance
Multi-family construction			—				49.9	%			—				48.0	%			39.7	%
One-to-four family construction			8.0	%			8.8	%			10.2	%			13.2	%			15.9	%
Recreation and all other loans			1.9	%			1.9	%			1.2	%			1.2	%			1.1	%
Commercial construction			3.8	%			4.0	%			7.2	%			10.3	%			13.4	%
Commercial acquisition and development			13.8	%			12.4	%			16.1	%			17.4	%			19.6	%
Residential acquisition and development			24.1	%			25.8	%			29.6	%			29.2	%			28.0	%
Total CAD NPL as a % of outstanding CAD balance			14.1	%			14.9	%			17.8	%			19.4	%			20.5	%

 

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BXS Announces First Quarter Results

Page 14

April 23, 2012

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		March 31, 2012
		Pass				Special Mention				Substandard				Doubtful				Loss				Impaired				Total
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial		$	1,376,983			$	6,449			$	47,783			$	4,159			$	247			$	6,106			$	1,441,727
Real estate
Consumer mortgages			1,729,187				23,918				151,679				4,351				446				28,416				1,937,997
Home equity			476,300				2,793				19,626				754				275				1,583				501,331
Agricultural			229,865				1,936				21,763				20				—				3,099				256,683
Commercial and industrial-owner occupied			1,151,368				24,662				83,041				230				89				28,152				1,287,542
Construction, acquisition and development			601,396				22,939				121,556				956				—				111,263				858,110
Commercial real estate			1,491,021				47,535				171,891				72				—				31,482				1,742,001
Credit cards			100,527				—				—				—				—				—				100,527
All other			575,399				16,685				18,222				678				10				1,011				612,005
Total loans		$	7,732,046			$	146,917			$	635,561			$	11,220			$	1,067			$	211,112			$	8,737,923

 

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BXS Announces First Quarter Results

Page 15

April 23, 2012

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		As of
		Mar-12				Dec-11				Sep-11				Jun-11				Mar-11
Unpaid principal balance of impaired loans		$	266,483			$	287,099			$	342,839			$	374,760			$	423,497
Cumulative charge-offs on impaired loans			55,371				52,176				62,950				71,103				84,676
Impaired nonaccrual loan and lease outstanding balance			211,112				234,923				279,889				303,657				338,821
Other non-accrual loans and leases not impaired			42,115				41,875				34,590				27,419				31,905
Total non-accrual loans and leases		$	253,227			$	276,798			$	314,479			$	331,076			$	370,726
Allowance for impaired loans			25,546				39,708				38,657				46,810				49,419
Nonaccrual loans and leases, net of specific reserves		$	227,681			$	237,090			$	275,822			$	284,266			$	321,307
Loans and leases 90+ days past due, still accruing		$	1,698			$	3,434			$	7,354			$	3,980			$	4,829
Restructured loans and leases, still accruing			30,311				42,018				40,966				44,786				49,472
Total non-performing loans and leases		$	285,236			$	322,250			$	362,799			$	379,842			$	425,027
Allowance for impaired loans		$	25,546			$	39,708			$	38,657			$	46,810			$	49,419
Allowance for all other loans and leases			156,231				155,410				161,029				150,817				148,914
Total allowance for credit losses		$	181,777			$	195,118			$	199,686			$	197,627			$	198,333
Outstanding balance of impaired loans		$	211,112			$	234,923			$	279,889			$	303,657			$	338,821
Allowance for impaired loans			25,546				39,708				38,657				46,810				49,419
Net book value of impaired loans		$	185,566			$	195,215			$	241,232			$	256,847			$	289,402
Net book value of impaired loans as a % of unpaid principal balance			70	%			68	%			70	%			69	%			68	%
Coverage of other non-accrual loans and leases not impaired by the allowance for all other loans and leases			371	%			371	%			466	%			550	%			467	%
Coverage of non-performing loans and leases not impaired by the allowance for all other loans and leases			211	%			178	%			194	%			198	%			173	%

 

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BXS Announces First Quarter Results

Page 16

April 23, 2012

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)

 

		March 31, 2012
		Alabama and Florida Panhandle				Arkansas				Mississippi				Missouri				Greater Memphis Area				Tennessee				Texas and Louisiana				Other				Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial		$	56,958			$	165,503			$	333,153			$	51,881			$	16,991			$	78,288			$	249,569			$	489,384			$	1,441,727
Real estate
Consumer mortgages			108,285				270,476				757,160				55,566				82,585				166,615				444,094				53,216				1,937,997
Home equity			57,995				39,922				170,628				24,849				67,484				75,894				62,253				2,306				501,331
Agricultural			5,775				83,839				72,900				3,937				9,262				13,199				62,470				5,301				256,683
Commercial and industrial-owner occupied			114,985				166,065				453,201				68,002				95,874				95,133				244,967				49,315				1,287,542
Construction, acquisition and development			104,362				69,566				244,459				48,115				95,198				92,608				185,781				18,021				858,110
Commercial real estate			203,365				342,591				342,816				219,999				115,186				101,142				362,700				54,202				1,742,001
Credit cards			—				—				—				—				—				—				—				100,527				100,527
All other			31,347				88,646				195,309				5,662				57,105				47,204				95,521				91,211				612,005
Total loans		$	683,072			$	1,226,608			$	2,569,626			$	478,011			$	539,685			$	670,083			$	1,707,355			$	863,483			$	8,737,923
CAD PORTFOLIO:
Multi-family construction		$	2,634			$	—			$	11			$	—			$	—			$	675			$	1,363			$	—			$	4,683
One-to-four family construction			26,983				12,703				41,728				6,787				9,580				28,030				32,890				580				159,281
Recreation and all other loans			1,735				8,937				31,632				562				3,174				845				16,522				—				63,407
Commercial construction			14,363				5,930				36,794				2,619				9,093				19,605				30,253				3,516				122,173
Commercial acquisition and development			13,905				16,392				52,641				15,018				32,228				16,719				38,903				5,977				191,783
Residential acquisition and development			44,742				25,604				81,653				23,129				41,123				26,734				65,850				7,948				316,783
Total CAD loans		$	104,362			$	69,566			$	244,459			$	48,115			$	95,198			$	92,608			$	185,781			$	18,021			$	858,110
NON-PERFORMING LOANS AND LEASES:
Commercial and industrial		$	2,455			$	2,175			$	789			$	3,414			$	7			$	215			$	2,756			$	669			$	12,480
Real estate
Consumer mortgages			5,655				4,716				12,654				5,172				3,074				5,820				7,171				7,963				52,225
Home equity			952				26				406				—				487				501				313				2				2,687
Agricultural			96				214				1,007				1,388				1,296				252				—				1				4,254
Commercial and industrial-owner occupied			8,923				6,164				7,344				1,567				4,402				5,508				3,183				2				37,093
Construction, acquisition and development			20,596				5,702				7,932				13,813				24,274				15,866				31,272				1,898				121,353
Commercial real estate			10,500				1,813				8,113				12,649				3,190				5,116				3,500				1,963				46,844
Credit cards			—				—				—				—				—				—				—				3,060				3,060
All other			325				2,204				1,053				118				31				1,157				198				154				5,240
Total loans		$	49,502			$	23,014			$	39,298			$	38,121			$	36,761			$	34,435			$	48,393			$	15,712			$	285,236

 

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BXS Announces First Quarter Results

Page 17

April 23, 2012

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

		March 31, 2012
		Alabama and Florida Panhandle				Arkansas				Mississippi				Missouri				Greater Memphis Area				Tennessee				Texas and Louisiana				Other				Total
OTHER REAL ESTATE OWNED:
Commercial and industrial		$	423			$	16			$	—			$	—			$	821			$	—			$	—			$	—			$	1,260
Real estate																																			—
Consumer mortgages			3,505				615				2,970				—				4,713				3,523				111				3,377				18,814
Home equity			—				26				22				—				586				141				—				—				775
Agricultural			902				—				730				—				1,164				2,371				—				—				5,167
Commercial and industrial-owner occupied			1,564				656				2,583				2,113				1,829				164				174				291				9,374
Construction, acquisition and development			16,179				1,766				25,510				1,965				46,007				19,458				2,630				—				113,515
Commercial real estate			3,557				1,744				3,241				307				7,318				—				233				579				16,979
All other			209				83				990				117				437				—				55				33				1,924
Total loans		$	26,339			$	4,906			$	36,046			$	4,502			$	62,875			$	25,657			$	3,203			$	4,280			$	167,808
		Quarter Ended
		Mar-12				Dec-11				Sep-11				Jun-11				Mar-11
OTHER REAL ESTATE OWNED:
Balance, beginning of period		$	173,805			$	162,686			$	151,204			$	136,412			$	133,412
Additions to foreclosed properties
New foreclosed property			10,766				36,507				29,063				38,199				21,464
Reductions in foreclosed properties
Sales			(11,771	)			(16,688	)			(13,136	)			(21,135	)			(13,528	)
Writedowns			(4,992	)			(8,700	)			(4,445	)			(2,272	)			(4,936	)
Balance, end of period		$	167,808			$	173,805			$	162,686			$	151,204			$	136,412
FORECLOSED PROPERTY EXPENSE
Loss (gain) on sale of other real estate owned		$	770			$	711			$	16			$	(140	)		$	492
Writedown of other real estate owned			4,992				8,700				4,445				2,272				4,936
Other foreclosed property expense			2,648				1,422				1,655				1,633				1,654
Total foreclosed property expense		$	8,410			$	10,833			$	6,116			$	3,765			$	7,082

 

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BXS Announces First Quarter Results

Page 18

April 23, 2012

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Mar-12				Dec-11				Sep-11				Jun-11				Mar-11
NONINTEREST REVENUE:
Mortgage lending		$	15,142			$	8,928			$	(1,443	)		$	2,003			$	7,581
Credit card, debit card and merchant fees			7,523				7,783				12,981				11,263				10,346
Service charges			15,116				17,412				17,334				16,556				15,368
Trust income			2,282				3,348				2,854				2,850				3,134
Securities gains, net			74				18				2,047				10,045				17
Insurance commissions			23,153				19,416				22,012				22,941				22,549
Annuity fees			642				382				552				1,094				1,296
Brokerage commissions and fees			1,438				1,215				1,627				1,437				1,638
Bank-owned life insurance			2,613				2,007				1,734				2,223				1,699
Other miscellaneous income			4,377				4,826				2,357				4,732				4,683
Total noninterest revenue		$	72,360			$	65,335			$	62,055			$	75,144			$	68,311
NONINTEREST EXPENSE:
Salaries and employee benefits		$	74,931			$	70,512			$	71,851			$	70,142			$	70,375
Occupancy, net of rental income			10,066				10,315				11,144				10,232				10,671
Equipment			5,333				5,108				5,346				5,595				5,658
Deposit insurance assessments			5,383				5,674				3,781				6,436				5,425
Prepayment penalty on FHLB borrowings			—				—				—				9,778				—
Advertising			841				1,778				1,140				1,291				889
Foreclosed property expense			8,409				10,833				6,116				3,765				7,082
Telecommunications			2,206				2,110				2,097				2,036				2,143
Public relations			1,466				1,244				1,415				1,554				1,514
Data processing			2,764				2,398				2,614				2,365				2,301
Computer software			1,803				1,892				1,863				1,899				1,848
Amortization of intangibles			763				813				823				833				854
Legal			2,216				3,947				1,467				1,158				2,598
Postage and shipping			1,255				1,163				1,182				1,171				1,297
Other miscellaneous expense			18,244				18,069				19,859				18,814				17,355
Total noninterest expense		$	135,680			$	135,856			$	130,698			$	137,069			$	130,010
INSURANCE COMMISSIONS:
Property and casualty commissions		$	14,430			$	14,033			$	16,226			$	16,527			$	13,683
Life and health commissions			4,724				4,024				4,359				4,301				4,477
Risk management income			655				597				703				596				713
Other			3,344				762				724				1,517				3,676
Total insurance commissions		$	23,153			$	19,416			$	22,012			$	22,941			$	22,549

 

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BXS Announces First Quarter Results

Page 19

April 23, 2012

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Mar-12				Dec-11				Sep-11				Jun-11				Mar-11
MORTGAGE SERVICING RIGHTS:
Fair value, beginning of period		$	30,174			$	29,159			$	39,455			$	42,306			$	38,642
Additions to mortgage servicing rights:
Originations of servicing assets			3,525				3,754				3,127				2,380				2,431
Changes in fair value:
Due to payoffs/paydowns			(1,726	)			(1,745	)			(1,745	)			(1,390	)			(1,300	)
Due to change in valuation inputs or assumptions used in the valuation model			3,697				(991	)			(11,676	)			(3,839	)			2,540
Other changes in fair value			(2	)			(3	)			(2	)			(2	)			(7	)
Fair value, end of period		$	35,668			$	30,174			$	29,159			$	39,455			$	42,306
MORTGAGE LENDING REVENUE:
Production revenue:
Origination		$	9,720			$	8,308			$	8,688			$	4,066			$	3,224
Servicing			3,451				3,356				3,290				3,166				3,117
Payoffs/Paydowns			(1,726	)			(1,745	)			(1,745	)			(1,390	)			(1,300	)
Total production revenue			11,445				9,919				10,233				5,842				5,041
Market value adjustment			3,697				(991	)			(11,676	)			(3,839	)			2,540
Total mortgage lending revenue (loss)		$	15,142			$	8,928			$	(1,443	)		$	2,003			$	7,581
HELD-TO-MATURITY SECURITIES, at amortized cost
U.S. Government agencies		$	—			$	—			$	—			$	—			$	1,278,185
Obligations of states and political subdivisions			—				—				—				—				389,018
Total held-to-maturity securities		$	—			$	—			$	—			$	—			$	1,667,203
AVAILABLE-FOR-SALE SECURITIES, at fair value
U.S. Government agencies		$	1,578,441			$	1,501,243			$	1,497,456			$	1,599,231			$	459,763
Government agency issued residential mortgage-back securities			385,146				404,610				420,689				430,402				529,302
Government agency issued commercial mortgage-back securities			31,647				34,599				34,475				31,627				30,938
Obligations of states and political subdivisions			568,642				563,520				519,431				486,653				111,380
Other			9,659				9,546				9,504				12,911				14,080
Total available-for-sale securities		$	2,573,535			$	2,513,518			$	2,481,555			$	2,560,824			$	1,145,463

 

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BXS Announces First Quarter Results

Page 20

April 23, 2012

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended March 31, 2012
(Taxable equivalent basis)		Average Balance				Interest				Yield/ Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income		$	8,852,792			$	110,407				5.02	%
Available-for-sale securities:
Taxable			2,058,859				11,272				2.20	%
Tax-exempt			449,082				6,547				5.86	%
Short-term investments			603,988				401				0.27	%
Total interest earning assets and revenue			11,964,721				128,627				4.32	%
Other assets			1,325,795
Less: allowance for credit losses			(202,158	)
Total		$	13,088,358
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand - interest bearing		$	4,960,060			$	4,449				0.36	%
Savings			1,027,611				714				0.28	%
Other time			2,916,910				11,291				1.56	%
Short-term borrowings			359,690				83				0.09	%
Junior subordinated debt			160,312				2,879				7.22	%
Long-term debt			33,500				349				4.19	%
Total interest bearing liabilities and expense			9,458,083				19,765				0.84	%
Demand deposits - noninterest bearing			2,139,371
Other liabilities			127,195
Total liabilities			11,724,649
Shareholders’ equity			1,363,709
Total		$	13,088,358
Net interest revenue						$	108,862
Net interest margin											3.66	%
Net interest rate spread											3.48	%
Interest bearing liabilities to interest earning assets											79.05	%
Net interest tax equivalent adjustment						$	3,252

 

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BXS Announces First Quarter Results

Page 21

April 23, 2012

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

		Quarter Ended December 31, 2011
(Taxable equivalent basis)		Average Balance				Interest				Yield/ 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

 

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BXS Announces First Quarter Results

Page 22

April 23, 2012

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended September 30, 2011
(Taxable equivalent basis)		Average Balance				Interest				Yield/ 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

 

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BXS Announces First Quarter Results

Page 23

April 23, 2012

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended June 30, 2011
(Taxable equivalent basis)		Average Balance				Interest				Yield/ 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

 

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BXS Announces First Quarter Results

Page 24

April 23, 2012

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended March 31, 2011
(Taxable equivalent basis)		Average Balance				Interest				Yield/ 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

 

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BXS Announces First Quarter Results

Page 25

April 23, 2012

 

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):

 

		March 31,								December 31,
		2012				2011				2011
Tangible assets
Total assets		$	13,307,572			$	13,547,238			$	12,995,851
Less: Goodwill			271,297				271,297				271,297
Other identifiable intangible assets			15,850				18,844				16,613
Total tangible assets		$	13,020,425			$	13,257,097			$	12,707,941
Tangible shareholders’ equity
Total shareholders’ equity		$	1,392,199			$	1,211,061			$	1,262,912
Less: Goodwill			271,297				271,297				271,297
Other identifiable intangible assets			15,850				18,844				16,613
Total tangible shareholders’ equity		$	1,105,052			$	920,920			$	975,002
Tangible shareholders’ equity to tangible assets			8.49	%			6.95	%			7.67	%

 

(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.

 

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