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 Fourth Quarter 2012 Earnings of $17.0 Million or $0.18 per Diluted Share

TUPELO, Miss., January 23, 2013/PRNewswire-FirstCall via COMTEX/ — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended December 31, 2012.

Highlights for the fourth quarter of 2012 included:

 

•

The appointment of James D. Rollins III as the Company’s new Chief Executive Officer.

 

•

Quarterly net income of $17.0 million or $0.18 per diluted share, resulting in net income of $84.3 million, or $0.90 per diluted share, for the year.

 

•

Mortgage production of $549.4 million, which contributed to mortgage lending revenue of $17.2 million for the quarter.

 

•

Other real estate owned (“OREO”) sales of $27.9 million, which contributed to a 19.5 percent decline in OREO and a 10.3 percent reduction in total non-performing assets (“NPAs”) from the prior quarter and reductions of 40.6 percent and 32.1 percent, respectively, compared to the end of 2011.

 

•

Nonaccrual loans decreased $12.5 million, or 5.7 percent, from the prior quarter and $69.6 million, or 25.1 percent, from the fourth quarter of 2011. At the end of the quarter, 55.7 percent of nonaccrual loans were paying in accordance with their contractual terms.

 

•

Capital ratios continued to rise, with Tier 1 leverage and Total risk-based capital ratios increasing to 10.25 percent and 15.08 percent, respectively.

On November 26, 2012 the Company announced that the Board of Directors had selected James D. “Dan” Rollins III as its new Chief Executive Officer. Rollins assumed this position effective November 27, 2012, and also became a member of BancorpSouth’s Board of Directors at that

 

- MORE -

 

Box 789  Ÿ    Tupelo, MS 38802-0789  Ÿ   (662) 680-2000
		is a financial holding company.

---

BXS Announces Fourth Quarter Results

Page 2

January 23, 2013

 

time. Rollins succeeded Aubrey B. Patterson, who continues to serve as Chairman of the Board. Rollins remarked, “I am both humbled by the confidence that the Board of Directors has placed in me and excited about working with a team of professionals who share a desire and commitment to move our Company forward. While I was only a part of the team for the last month of 2012, I believe that the results reported for the year are the product of a lot of hard work and effort over a number of quarters to continue to improve the Company’s credit quality and operating performance.”

The Company reported net income of $17.0 million, or $0.18 per diluted share, for the fourth quarter of 2012 compared with net income of $13.3 million, or $0.16 per diluted share, for the fourth quarter of 2011 and net income of $23.8 million, or $0.25 per diluted share, for the third quarter of 2012. The Company reported total net income for 2012 of $84.3 million, or $0.90 per diluted share, compared with $37.6 million, or $0.45 per diluted share, for 2011.

“Results for the fourth quarter reflect yet another quarter of strong mortgage production and asset quality improvement,” remarked Patterson. “Mortgage production for the quarter was $549.4 million, contributing to total mortgage lending revenue of $17.2 million. This level of production resulted in a record annual production volume of almost $2 billion for 2012. As to asset quality, we are particularly pleased with disposition efforts related to OREO. Total sales for the quarter exceeded $27 million, which represents the largest quarter of sales during the credit cycle. We made decisions during the quarter to expedite the disposition of many of the OREO properties and to more aggressively price others going forward. Some of these decisions adversely impacted current quarter earnings, but we believe they are prudent ones that will help improve profitability in future periods.”

Earnings for the quarter reflect a provision for credit losses of $6.0 million, which is a decrease from $19.3 million for the fourth quarter of 2011 and is flat compared to $6.0 million for the third quarter of 2012. Non-performing loans (“NPLs”) declined $13.8 million, or 5.6 percent, during the fourth quarter of 2012 to $233.6 million compared with $247.3 million at September 30, 2012 and declined $88.7 million, or 27.5 percent, from $322.3 million at December 31, 2011. In addition, total NPAs declined $38.7 million, or 10.3 percent, to $336.8 million compared with $375.5 million at September 30, 2012 and declined $159.3 million, or 32.1 percent, from $496.1 million at December 31, 2011. Net charge-offs declined to $10.6 million for the fourth quarter of 2012 compared with $12.8 million for the third quarter of 2012. Net charge-offs during the fourth quarter of 2012 included $6.4 million of charge-offs of loans which had been identified and reported as impaired and were reserved for in previous quarters.

Earnings for the quarter were also impacted by additional compression in the net interest margin. The fully taxable equivalent net interest margin was 3.44 percent for the fourth quarter of 2012 compared with 3.55 percent for the third quarter of 2012 and 3.69 percent for the fourth quarter of 2011. Patterson added, “As others in the industry have experienced, we continue to see pressure on the net interest margin as a result of re-pricing on the asset side of the balance sheet. Our securities portfolio continues to roll over at lower rates and loan yields are under pressure both prior to and at maturity. The importance of fee income generation and efficiency are becoming increasingly magnified as we work to navigate through this rate environment.”

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 3

January 23, 2013

 

Net Interest Revenue

Net interest revenue was $100.9 million for the fourth quarter of 2012, a decrease of 6.2 percent from $107.5 million for the fourth quarter of 2011 and a decrease of 2.4 percent from $103.4 million for the third quarter of 2012. The fully taxable equivalent net interest margin declined to 3.44 percent for the fourth quarter of 2012 from 3.69 percent for the fourth quarter of 2011 and 3.55 percent for the third quarter of 2012. Declines in the net interest margin were due primarily to continued pressure on asset yields, particularly yields on loans and leases, which declined to 4.76 percent for the fourth quarter of 2012 compared with 5.02 percent for the fourth quarter of 2011 and 4.85 percent for the third quarter of 2012.

Asset, Deposit and Loan Activity

Total assets were $13.4 billion at December 31, 2012 compared with $13.0 billion at December 31, 2011. Total deposits were $11.1 billion at December 31, 2012, an increase of 1.2 percent from $11.0 billion at December 31, 2011. Loans and leases, net of unearned income, were $8.6 billion at December 31, 2012, a decrease of 2.6 percent from $8.9 billion at December 31, 2011. The construction, acquisition, and development (“CAD”) loan portfolio, which decreased $172.6 million, or 19.0 percent, from December 31, 2011 to December 31, 2012, accounted for 74.0 percent of the decline in net loans and leases over the same time period.

The decrease in time deposits of $389.2 million, or 13.0 percent, at December 31, 2012 compared to December 31, 2011, was offset partially by significant growth in noninterest bearing demand deposits, which increased $275.4 million, or 12.1 percent, over the same period. Additionally, savings deposits increased $154.1 million, or 15.5 percent, while interest bearing demand deposits increased $92.7 million, or 2.0 percent, over the same period. As of December 31, 2012, $801.9 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.73 percent.

Provision for Credit Losses and Allowance for Credit Losses

For the fourth quarter of 2012, the provision for credit losses was $6.0 million, compared with $19.3 million for the fourth quarter of 2011 and $6.0 million for the third quarter of 2012. Net charge-offs for the fourth quarter of 2012 were $10.6 million, compared with $23.8 million for the fourth quarter of 2011 and $12.8 million for the third quarter of 2012. Recoveries of previously charged-off loans were $9.2 million for the fourth quarter of 2012, compared with $2.6 million for the fourth quarter of 2011 and $6.1 million for the third quarter of 2012. Annualized net charge-offs were 0.49 percent of average loans and leases for the fourth quarter of 2012, compared with 1.06 percent for the fourth quarter of 2011 and 0.59 percent for the third quarter of 2012. Total annual net charge-offs were $58.7 million for 2012 compared with $131.9 million for 2011. Recoveries of previously charged-off loans totaled $30.7 million for 2012 compared with $10.2 million for 2011.

NPLs were $233.6 million, or 2.70 percent of net loans and leases, at December 31, 2012, compared with $322.3 million, or 3.63 percent of net loans and leases, at December 31, 2011, and $247.3 million, or 2.85 percent of net loans and leases, at September 30, 2012. The

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 4

January 23, 2013

 

allowance for credit losses was $164.5 million, or 1.90 percent of net loans and leases, at December 31, 2012 compared with $195.1 million, or 2.20 percent of net loans and leases, at December 31, 2011 and $169.0 million, or 1.95 percent of net loans and leases, at September 30, 2012.

NPLs at December 31, 2012 consisted primarily of $207.2 million of nonaccrual loans, compared with $219.7 million of nonaccrual loans at September 30, 2012. Included in the reduction of nonaccrual loans during the fourth quarter of 2012 were payments received on nonaccrual loans of $31.6 million, compared with payments received on such loans of $26.7 million during the third quarter of 2012. NPLs at December 31, 2012 also included $1.2 million of loans 90 days or more past due and still accruing, compared with $1.4 million at September 30, 2012, and included restructured loans still accruing of $25.1 million at December 31, 2012, compared with $26.1 million at September 30, 2012. Early stage past due loans, representing loans 30-89 days past due, declined to $28.2 million at December 31, 2012 from $43.8 million at September 30, 2012.

At December 31, 2012, $35.7 million of NPLs were residential CAD loans, $36.3 million were other CAD loans, $62.2 million were commercial real estate loans and $40.7 million were consumer mortgages. NPLs from all other loan types totaled $58.7 million at December 31, 2012. Included in nonaccrual loans at December 31, 2012 were $115.4 million of loans, or 55.7 percent of total nonaccrual loans, that were paying as agreed, compared with $125.0 million, or 56.9 percent, at the end of the third quarter of 2012. These loans were generally placed on nonaccrual status because the collateral values were less than the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or would be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values. Such loans are generally deemed to be impaired, with a specific reserve established for the difference in the balance owed and the disposition value of the collateral.

At the end of the fourth quarter, 75.6 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 70.9 percent of the unpaid principal balance. At December 31, 2012, coverage of unimpaired nonaccrual loans by the nonspecified allowance for credit losses was 305 percent and coverage of unimpaired NPLs by the nonspecified allowance for credit losses was 200 percent.

OREO decreased $25.0 million to $103.2 million during the fourth quarter of 2012 from $128.2 million at September 30, 2012. This net decrease reflected $8.5 million added through foreclosure, offset by sales of OREO of $27.9 million. Write-downs in the value of existing properties were $5.5 million for the fourth quarter of 2012 compared to $6.3 million for the third quarter of 2012. Sales of OREO during the fourth quarter of 2012 resulted in a net loss of $4.2 million compared to a net loss of $0.8 million for the third quarter of 2012. At December 31, 2012, OREO was carried at 44.0 percent of the aggregate loan balances at the time of foreclosure, compared with 49.2 percent at September 30, 2012.

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 5

January 23, 2013

 

Noninterest Revenue

Noninterest revenue was $70.9 million for the fourth quarter of 2012, compared with $65.3 million for the fourth quarter of 2011 and $70.4 million for the third quarter of 2012. These results included a positive mortgage servicing rights (“MSR”) valuation adjustment of $0.2 million for the fourth quarter of 2012 compared with negative adjustments of $1.0 million for the fourth quarter of 2011 and $3.2 million for the third quarter of 2012.

Excluding the MSR valuation adjustments, net mortgage lending revenue was $17.0 million for the fourth quarter of 2012, compared with $9.9 million for the fourth quarter of 2011 and $16.8 million for the third quarter of 2012. Mortgage origination volume for the fourth quarter of 2012 was $549.4 million, compared with $389.6 million for the fourth quarter of 2011 and $607.9 million for the third quarter of 2012.

Credit and debit card fee revenue was $8.1 million for the fourth quarter of 2012, compared with $7.8 million for the fourth quarter of 2011 and $8.3 million for the third quarter of 2012. Service charge revenue was $13.9 million for the fourth quarter of 2012, compared with $17.4 million for the fourth quarter of 2011 and $14.2 million for the third quarter of 2012. Insurance commission revenue was $20.5 million for the fourth quarter of 2012, compared with $19.4 million for the fourth quarter of 2011 and $23.5 million for the third quarter of 2012. The decrease in insurance commission revenue was seasonal, as fourth quarter policy renewals are typically lower than other quarters.

Noninterest Expense

Noninterest expense for the fourth quarter of 2012 was $143.2 million, compared with $135.9 million for the fourth quarter of 2011 and $133.8 million for the third quarter of 2012. Salaries and employee benefits expense increased to $77.2 million for the fourth quarter of 2012 from $70.5 million for the fourth quarter of 2011 and $74.8 million for the third quarter of 2012. Foreclosed property expense increased to $12.0 million for the fourth quarter of 2012 from $10.8 million for the fourth quarter of 2011 and $8.8 million for the third quarter of 2012. Deposit insurance assessments were $3.1 million for the fourth quarter of 2012 compared to $5.7 million for the fourth quarter of 2011 and $4.0 million for the third quarter of 2012.

Capital Management

BancorpSouth remains a “well capitalized” financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 13.82 percent at December 31, 2012 and total risk based capital of 15.08 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for “well capitalized” classification. The Company’s equity capitalization consists of 100 percent common stock. BancorpSouth’s ratio of shareholders’ equity to assets was 10.82 percent at December 31, 2012, compared with 9.72 percent at December 31, 2011 and 10.93 percent at September 30, 2012. The ratio of tangible shareholders’ equity to tangible assets was 8.83 percent at December 31, 2012, compared with 7.67 percent at December 31, 2011 and 8.91 percent at September 30, 2012.

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 6

January 23, 2013

 

Summary

Patterson concluded, “Our fourth quarter results finalize a very successful and productive year in many aspects. During 2012, we were able to reduce NPLs by over 25 percent, OREO by over 40 percent, and total NPAs by over 30 percent. We experienced a record year in both mortgage production and mortgage lending income. In addition, we achieved growth in other fee lines of business, including a 3.7 percent increase in insurance commissions. As we enter 2013, we believe that this progress will be instrumental in helping us continue to enhance company performance despite industry headwinds.”

Rollins added, “Over the course of my first few weeks as CEO, I have had an opportunity to meet many of my teammates across several different markets. I have experienced firsthand professionals who share my desire to help our company succeed. BancorpSouth has a history of over 135 years as a well-respected organization with a strong commitment to the values of client service and community support. Our team clearly understands that the industry landscape has changed. Regulatory measures have placed pressure on NSF and card fee income and the credit cycle has resulted in declining loan balances, both of which have contributed to declines in profitability. Our team understands that growth is the real key to battling industry headwinds and to improving profitability.”

Conference Call

BancorpSouth will conduct a conference call to discuss its fourth quarter 2012 results on January 24, 2013, 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 the disposition and the aggressive pricing of certain OREO properties, credit quality and operating performance, profitability, 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

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 7

January 23, 2013

 

the significant amount of the Company’s other real estate owned, limitations on the Company’s ability to declare and pay dividends, the short-term and long-term impact of changes to banking capital standards on the Company’s regulatory capital and liquidity, 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, 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 $13.4 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 293 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 8

January 23, 2013

 

BancorpSouth, Inc.

Selected Financial Data

 

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2012				2011				2012				2011
(Dollars in thousands, except per share amounts)
Earnings Summary:
Net interest revenue		$	100,861			$	107,489			$	414,591			$	434,913
Provision for credit losses			6,000				19,250				28,000				130,081
Noninterest revenue			70,901				65,335				280,149				270,845
Noninterest expense			143,219				135,856				549,193				533,633
Income before income taxes			22,543				17,718				117,547				42,044
Income tax provision			5,563				4,415				33,252				4,475
Net income		$	16,980			$	13,303			$	84,295			$	37,569
Earnings per share: Basic		$	0.18			$	0.16			$	0.90			$	0.45
Diluted		$	0.18			$	0.16			$	0.90			$	0.45
Balance sheet data at December 31:
Total assets										$	13,397,198			$	12,995,851
Total earning assets											12,179,958				11,770,950
Loans and leases, net of unearned income											8,636,989				8,870,311
Allowance for credit losses											164,466				195,118
Total deposits											11,088,146				10,955,189
Common shareholders’ equity											1,449,052				1,262,912
Book value per share											15.34				15.13
Tangible book value per share											12.25				11.68
Average balance sheet data:
Total assets		$	13,143,193			$	13,046,779			$	13,067,276			$	13,280,047
Total earning assets			12,045,432				11,918,358				11,960,971				12,143,391
Loans and leases, net of unearned interest			8,635,139				8,954,229				8,719,399				9,159,431
Total deposits			10,938,246				11,017,231				10,936,694				11,251,406
Common shareholders’ equity			1,454,417				1,268,905				1,413,667				1,240,768
Non-performing assets at December 31:
Non-accrual loans and leases										$	207,241			$	276,798
Loans and leases 90+ days past due, still accruing											1,210				3,434
Restructured loans and leases, still accruing											25,099				42,018
Other real estate owned											103,248				173,805
Total non-performing assets											336,798				496,055
Net charge-offs as a percentage of average loans (annualized)			0.49	%			1.06	%			0.67	%			1.44	%
Performance ratios (annualized):
Return on average assets			0.51	%			0.40	%			0.65	%			0.28	%
Return on common equity			4.64	%			4.16	%			5.96	%			3.03	%
Total shareholders’ equity to total assets			10.82	%			9.72	%			10.82	%			9.72	%
Tangible shareholders’ equity to tangible assets			8.83	%			7.67	%			8.83	%			7.67	%
Net interest margin			3.44	%			3.69	%			3.57	%			3.69	%
Average shares outstanding - basic			94,440,184				83,488,102				93,760,604				83,486,296
Average shares outstanding - diluted			94,560,226				83,503,611				93,850,104				83,509,759
Cash dividends per share		$	0.01			$	0.01			$	0.04			$	0.14
Tier 1 capital			13.82	%(1)			11.77	%			13.82	%(1)			11.77	%
Total capital			15.08	%(1)			13.03	%			15.08	%(1)			13.03	%
Tier 1 leverage capital			10.25	%(1)			8.85	%			10.25	%(1)			8.85	%

 

(1)	Estimated as of earnings release date

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 9

January 23, 2013

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

 

		Dec-12				Sep-12				Jun-12				Mar-12				Dec-11
		(Dollars in thousands)
Assets
Cash and due from banks		$	223,814			$	176,529			$	224,084			$	184,441			$	195,681
Interest bearing deposits with other banks			979,800				757,207				603,458				665,675				303,663
Available-for-sale securities, at fair value			2,434,032				2,483,606				2,462,831				2,573,535				2,513,518
Loans and leases			8,672,752				8,716,715				8,771,642				8,777,538				8,911,258
Less: Unearned income			35,763				36,746				39,247				39,615				40,947
Allowance for credit losses			164,466				169,019				175,847				181,777				195,118
Net loans and leases			8,472,523				8,510,950				8,556,548				8,556,146				8,675,193
Loans held for sale			129,138				129,408				108,134				110,294				83,458
Premises and equipment, net			319,456				321,068				320,419				321,720				323,383
Accrued interest receivable			44,356				48,314				47,358				50,008				51,266
Goodwill			275,173				275,173				271,297				271,297				271,297
Bank owned life insurance			231,120				203,798				202,620				202,698				200,085
Other real estate owned			103,248				128,211				143,615				167,808				173,805
Other assets			184,538				201,473				207,454				203,950				204,502
Total Assets		$	13,397,198			$	13,235,737			$	13,147,818			$	13,307,572			$	12,995,851
Liabilities
Deposits:
Demand: Noninterest bearing		$	2,545,169			$	2,492,508			$	2,312,044			$	2,260,012			$	2,269,799
Interest bearing			4,799,496				4,697,260				4,782,243				4,897,585				4,706,825
Savings			1,145,785				1,103,490				1,083,255				1,067,256				991,702
Other time			2,597,696				2,681,382				2,778,795				2,857,469				2,986,863
Total deposits			11,088,146				10,974,640				10,956,337				11,082,322				10,955,189
Federal funds purchased and securities sold under agreement to repurchase			414,611				377,676				361,990				401,089				373,933
Short-term Federal Home Loan Bank borrowings and other short-term borrowing			—				—				1,500				1,500				1,500
Accrued interest payable			6,140				6,759				7,161				7,652				8,644
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				33,500				33,500
Other liabilities			245,437				236,147				208,707				228,998				199,861
Total Liabilities			11,948,146				11,789,034				11,729,507				11,915,373				11,732,939
Shareholders’ Equity
Common stock			236,094				236,102				236,091				236,090				208,709
Capital surplus			312,190				311,271				310,388				309,426				227,567
Accumulated other comprehensive income (loss)			(8,646	)			5,952				1,334				(4,136	)			(2,261	)
Retained earnings			909,414				893,378				870,498				850,819				828,897
Total Shareholders’ Equity			1,449,052				1,446,703				1,418,311				1,392,199				1,262,912
Total Liabilities & Shareholders’ Equity		$	13,397,198			$	13,235,737			$	13,147,818			$	13,307,572			$	12,995,851

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 10

January 23, 2013

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

 

		Dec-12				Sep-12				Jun-12				Mar-12				Dec-11
		(Dollars in thousands)
Assets
Cash and due from banks		$	164,801			$	152,228			$	152,907			$	160,827			$	151,004
Interest bearing deposits with other banks			849,710				605,270				574,624				603,714				384,231
Available-for-sale securities, at fair value			2,454,031				2,481,201				2,520,932				2,507,941				2,509,943
Federal funds sold and securities purchased under agreement to resell			—				2,717				—				274				2,174
Loans and leases			8,671,559				8,755,094				8,774,767				8,832,104				8,995,035
Less: Unearned income			36,420				38,448				39,542				40,562				40,806
Allowance for credit losses			170,081				179,283				185,209				202,158				208,005
Net loans and leases			8,465,058				8,537,363				8,550,016				8,589,384				8,746,224
Loans held for sale			106,552				118,944				77,642				61,250				67,781
Premises and equipment, net			320,439				320,234				320,731				322,641				322,544
Accrued interest receivable			43,144				44,789				45,494				47,512				49,256
Goodwill			275,173				273,867				271,297				271,297				271,297
Bank owned life insurance			208,504				203,151				202,616				200,724				198,892
Other real estate owned			119,852				134,384				155,471				170,924				164,841
Other assets			135,929				144,868				146,501				151,870				178,592
Total Assets		$	13,143,193			$	13,019,016			$	13,018,231			$	13,088,358			$	13,046,779
Liabilities
Deposits:
Demand: Noninterest bearing		$	2,482,168			$	2,328,948			$	2,248,914			$	2,139,371			$	2,248,904
Interest bearing			4,703,500				4,704,896				4,769,340				4,960,060				4,714,059
Savings			1,117,297				1,092,802				1,074,912				1,027,611				975,892
Other time			2,635,281				2,729,878				2,815,753				2,916,910				3,078,376
Total deposits			10,938,246				10,856,524				10,908,919				11,043,952				11,017,231
Federal funds purchased and securities sold under agreement to repurchase			401,968				388,817				374,982				358,124				430,968
Short-term Federal Home Loan Bank borrowings and other short-term borrowing			—				1,223				1,500				1,500				1,500
Accrued interest payable			7,613				8,404				8,605				9,392				10,617
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				33,500				33,500
Other liabilities			147,137				138,079				126,680				117,869				123,746
Total Liabilities			11,688,776				11,586,859				11,614,498				11,724,649				11,777,874
Shareholders’ Equity
Common stock			236,103				236,095				236,091				231,276				208,722
Capital surplus			311,634				310,642				309,634				294,973				227,201
Accumulated other comprehensive (loss) income			1,260				2,900				(4,020	)			(2,269	)			8,927
Retained earnings			905,420				882,520				862,028				839,729				824,055
Total Shareholders’ Equity			1,454,417				1,432,157				1,403,733				1,363,709				1,268,905
Total Liabilities & Shareholders’ Equity		$	13,143,193			$	13,019,016			$	13,018,231			$	13,088,358			$	13,046,779

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 11

January 23, 2013

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

 

		Quarter Ended																				Year To Date
		Dec-12				Sep-12				Jun-12				Mar-12				Dec-11				Dec-12				Dec-11
INTEREST REVENUE:
Loans and leases		$	102,925			$	105,937			$	107,737			$	109,012			$	112,566			$	425,611			$	461,076
Deposits with other banks			529				399				382				401				252				1,711				701
Federal funds sold and securities purchased under agreement to resell			—				2				1				—				1				3				167
Held-to-maturity securities:
Taxable			—				—				—				—				—				—				13,080
Tax-exempt			—				—				—				—				—				—				5,638
Available-for-sale securities:
Taxable			8,729				9,329				10,188				11,162				11,781				39,408				43,989
Tax-exempt			4,083				4,109				4,210				4,256				4,158				16,658				10,983
Loans held for sale			829				974				686				544				635				3,033				2,219
Total interest revenue			117,095				120,750				123,204				125,375				129,393				486,424				537,853
INTEREST EXPENSE:
Interest bearing demand			3,588				3,889				4,185				4,449				4,737				16,111				22,646
Savings			606				686				691				714				747				2,697				3,211
Other time			8,749				9,482				10,275				11,291				13,104				39,797				61,709
Federal funds purchased and securities sold under agreement to repurchase			72				73				66				63				76				274				458
FHLB borrowings			349				364				366				367				367				1,446				3,459
Junior subordinated debt			2,869				2,875				2,879				2,879				2,871				11,502				11,451
Other			1				2				1				2				2				6				6
Total interest expense			16,234				17,371				18,463				19,765				21,904				71,833				102,940
Net interest revenue			100,861				103,379				104,741				105,610				107,489				414,591				434,913
Provision for credit losses			6,000				6,000				6,000				10,000				19,250				28,000				130,081
Net interest revenue, after provision for credit losses			94,861				97,379				98,741				95,610				88,239				386,591				304,832
NONINTEREST REVENUE:
Mortgage lending			17,188				13,549				11,040				15,142				8,928				56,919				17,069
Credit card, debit card and merchant fees			8,125				8,270				7,787				7,523				7,783				31,705				42,373
Service charges			13,875				14,189				13,697				15,116				17,412				56,877				66,670
Trust income			3,391				3,101				3,139				2,282				3,348				11,913				12,186
Security gains, net			152				39				177				74				18				442				12,127
Insurance commissions			20,502				23,519				22,964				23,153				19,416				90,138				86,918
Other			7,668				7,753				7,664				9,070				8,430				32,155				33,502
Total noninterest revenue			70,901				70,420				66,468				72,360				65,335				280,149				270,845
NONINTEREST EXPENSE:
Salaries and employee benefits			77,203				74,829				77,661				74,931				70,512				304,624				282,880
Occupancy, net of rental income			10,643				10,944				10,487				10,066				10,315				42,140				42,362
Equipment			5,309				5,083				5,124				5,333				5,108				20,849				21,707
Deposit insurance assessments			3,103				3,998				3,994				5,383				5,674				16,478				21,316
Prepayment penalty on FHLB borrowings			—				—				—				—				—				—				9,778
Other			46,961				38,934				39,240				39,967				44,247				165,102				155,590
Total noninterest expenses			143,219				133,788				136,506				135,680				135,856				549,193				533,633
Income before income taxes			22,543				34,011				28,703				32,290				17,718				117,547				42,044
Income tax expense			5,563				10,186				8,079				9,424				4,415				33,252				4,475
Net income		$	16,980			$	23,825			$	20,624			$	22,866			$	13,303			$	84,295			$	37,569
Net income per share: Basic		$	0.18			$	0.25			$	0.22			$	0.25			$	0.16			$	0.90			$	0.45
Diluted		$	0.18			$	0.25			$	0.22			$	0.25			$	0.16			$	0.90			$	0.45

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 12

January 23, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Dec-12				Sep-12				Jun-12				Mar-12				Dec-11
LOAN AND LEASE PORTFOLIO:
Commercial and industrial		$	1,476,611			$	1,462,719			$	1,497,678			$	1,441,727			$	1,473,728
Real estate
Consumer mortgages			1,873,875				1,888,783				1,904,420				1,937,997				1,945,190
Home equity			486,074				492,833				496,245				501,331				514,362
Agricultural			256,196				257,733				251,975				256,683				239,487
Commercial and industrial-owner occupied			1,333,103				1,309,631				1,288,887				1,287,542				1,301,575
Construction, acquisition and development			735,808				823,692				835,022				858,110				908,362
Commercial real estate			1,748,881				1,738,516				1,748,748				1,742,001				1,754,022
Credit cards			104,884				101,405				101,085				100,527				106,281
All other			621,557				604,657				608,335				612,005				627,304
Total loans		$	8,636,989			$	8,679,969			$	8,732,395			$	8,737,923			$	8,870,311
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period		$	169,019			$	175,847			$	181,777			$	195,118			$	199,686
Loans and leases charged off:
Commercial and industrial			(2,174	)			(4,334	)			(1,582	)			(4,272	)			(1,677	)
Real estate
Consumer mortgages			(3,789	)			(2,299	)			(2,818	)			(4,216	)			(2,953	)
Home equity			(1,064	)			(270	)			(536	)			(851	)			(1,667	)
Agricultural			(456	)			(302	)			(386	)			(96	)			(110	)
Commercial and industrial-owner occupied			(1,421	)			(994	)			(2,732	)			(3,868	)			(1,136	)
Construction, acquisition and development			(5,286	)			(6,845	)			(9,560	)			(11,394	)			(10,539	)
Commercial real estate			(4,026	)			(2,633	)			(3,260	)			(2,809	)			(6,858	)
Credit cards			(531	)			(540	)			(588	)			(562	)			(706	)
All other			(977	)			(731	)			(438	)			(758	)			(794	)
Total loans charged off			(19,724	)			(18,948	)			(21,900	)			(28,826	)			(26,440	)
Recoveries:
Commercial and industrial			3,507				1,007				1,040				1,542				446
Real estate
Consumer mortgages			819				256				438				323				263
Home equity			66				37				78				315				43
Agricultural			10				53				53				10				76
Commercial and industrial-owner occupied			561				270				1,514				351				100
Construction, acquisition and development			1,621				2,676				1,955				2,155				971
Commercial real estate			2,208				1,443				4,504				383				340
Credit cards			144				144				121				118				168
All other			235				234				267				288				215
Total recoveries			9,171				6,120				9,970				5,485				2,622
Net charge-offs			(10,553	)			(12,828	)			(11,930	)			(23,341	)			(23,818	)
Provision charged to operating expense			6,000				6,000				6,000				10,000				19,250
Balance, end of period		$	164,466			$	169,019			$	175,847			$	181,777			$	195,118
Average loans for period		$	8,635,139			$	8,716,646			$	8,735,225			$	8,791,542			$	8,954,229
Ratio:
Net charge-offs to average loans (annualized)			0.49	%			0.59	%			0.55	%			1.06	%			1.06	%

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 13

January 23, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Dec-12				Sep-12				Jun-12				Mar-12				Dec-11
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial		$	9,311			$	8,674			$	13,156			$	11,025			$	12,260
Real estate
Consumer mortgages			36,133				35,599				35,660				46,562				47,878
Home equity			3,497				3,471				2,995				2,687				2,036
Agricultural			7,587				7,190				8,390				4,254				4,179
Commercial and industrial-owner occupied			20,910				27,059				26,957				32,842				33,112
Construction, acquisition and development			66,635				92,351				104,283				115,649				133,110
Commercial real estate			57,656				40,514				44,359				35,715				40,616
Credit cards			415				465				364				509				594
All other			5,097				4,415				4,082				3,984				3,013
Total nonaccrual loans and leases		$	207,241			$	219,738			$	240,246			$	253,227			$	276,798
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and industrial		$	414			$	45			$	—			$	10			$	12
Real estate
Consumer mortgages			512				1,027				1,141				1,314				2,974
Home equity			—				—				—				—				—
Agricultural			10				—				—				—				—
Commercial and industrial-owner occupied			19				119				—				—				—
Construction, acquisition and development			—				—				—				—				—
Commercial real estate			—				—				—				—				—
Credit cards			228				236				324				228				299
All other			27				15				167				146				149
Total loans and leases 90+ days past due, still accruing			1,210				1,442				1,632				1,698				3,434
Restructured Loans and Leases, Still Accruing			25,099				26,147				25,071				30,311				42,018
Total non-performing loans and leases			233,550				247,327				266,949				285,236				322,250
OTHER REAL ESTATE OWNED:			103,248				128,211				143,615				167,808				173,805
Total Non-performing Assets		$	336,798			$	375,538			$	410,564			$	453,044			$	496,055
Additions to Nonaccrual Loans and Leases During the Quarter		$	44,674			$	28,918			$	41,121			$	40,392			$	39,474
Loans and Leases 30-89 Days Past Due, Still Accruing:
Commercial and industrial		$	3,080			$	6,065			$	3,040			$	4,809			$	8,065
Real estate
Consumer mortgages			13,403				14,745				14,436				10,736				15,864
Home equity			1,272				1,766				1,311				2,248				2,037
Agricultural			306				977				471				663				339
Commercial and industrial-owner occupied			3,498				4,859				2,745				3,332				2,154
Construction, acquisition and development			2,303				8,528				2,062				2,431				2,714
Commercial real estate			1,176				3,210				1,288				2,104				3,292
Credit cards			777				734				673				686				802
All other			2,422				2,861				2,544				1,983				2,280
Total Loans and Leases 30-89 days past due, still accruing		$	28,237			$	43,745			$	28,570			$	28,992			$	37,547
Credit Quality Ratios:
Provision for credit losses to average loans and leases (annualized)			0.28	%			0.28	%			0.27	%			0.45	%			0.86	%
Allowance for credit losses to net loans and leases			1.90	%			1.95	%			2.01	%			2.08	%			2.20	%
Allowance for credit losses to non-performing assets			48.83	%			45.01	%			42.83	%			40.12	%			39.33	%
Allowance for credit losses to non-performing loans and leases			70.42	%			68.34	%			65.87	%			63.73	%			60.55	%
Non-performing loans and leases to net loans and leases			2.70	%			2.85	%			3.06	%			3.26	%			3.63	%
Non-performing assets to net loans and leases			3.90	%			4.33	%			4.70	%			5.18	%			5.59	%

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 14

January 23, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Dec-12				Sep-12				Jun-12				Mar-12				Dec-11
REAL ESTATE CONSTRUCTION, ACQUISITION AND DEVELOPMENT (“CAD”) PORTFOLIO:
Outstanding Balance
Multi-family construction		$	6,542			$	4,546			$	2,378			$	4,683			$	2,138
One-to-four family construction			177,392				189,561				182,648				159,281				169,827
Recreation and all other loans			44,840				62,888				66,033				63,407				67,235
Commercial construction			114,099				126,296				112,929				122,173				130,124
Commercial acquisition and development			161,546				177,887				182,570				191,783				197,044
Residential acquisition and development			231,389				262,514				288,464				316,783				341,994
Total outstanding balance		$	735,808			$	823,692			$	835,022			$	858,110			$	908,362
Nonaccrual CAD Loans
Multi-family construction		$	—			$	—			$	—			$	—			$	1,067
One-to-four family construction			10,609				14,171				15,490				11,953				14,690
Recreation and all other loans			1,160				1,166				380				386				436
Commercial construction			5,889				6,991				4,318				3,702				5,235
Commercial acquisition and development			17,337				21,408				21,741				23,464				23,968
Residential acquisition and development			31,640				48,615				62,354				76,144				87,714
Total nonaccrual CAD loans			66,635				92,351				104,283				115,649				133,110
CAD Loans 90+ Days Past Due, Still Accruing:
Multi-family construction			—				—				—				—				—
One-to-four family construction			—				—				—				—				—
Recreation and all other loans			—				—				—				—				—
Commercial construction			—				—				—				—				—
Commercial acquisition and development			—				—				—				—				—
Residential acquisition and development			—				—				—				—				—
Total CAD loans 90+ days past due, still accruing			—				—				—				—				—
Restructured CAD Loans, Still Accruing
Multi-family construction			—				—				—				—				—
One-to-four family construction			781				787				793				799				318
Recreation and all other loans			17				20				842				847				852
Commercial construction			—				—				—				977				—
Commercial acquisition and development			458				133				260				2,975				433
Residential acquisition and development			4,107				4,149				4,048				106				446
Total restructured CAD loans, still accruing			5,363				5,089				5,943				5,704				2,049
Total Non-performing CAD loans		$	71,998			$	97,440			$	110,226			$	121,353			$	135,159
CAD NPL as a % of Outstanding CAD Balance
Multi-family construction			—				—				—				—				49.9	%
One-to-four family construction			6.4	%			7.9	%			8.9	%			8.0	%			8.8	%
Recreation and all other loans			2.6	%			1.9	%			1.9	%			1.9	%			1.9	%
Commercial construction			5.2	%			5.5	%			3.8	%			3.8	%			4.0	%
Commercial acquisition and development			11.0	%			12.1	%			12.1	%			13.8	%			12.4	%
Residential acquisition and development			15.4	%			20.1	%			23.0	%			24.1	%			25.8	%
Total CAD NPL as a % of outstanding CAD balance			9.8	%			11.8	%			13.2	%			14.1	%			14.9	%

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 15

January 23, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		December 31, 2012
		Pass				Special Mention				Substandard				Doubtful				Loss				Impaired				Total
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial		$	1,426,498			$	14,663			$	29,876			$	729			$	—			$	4,845			$	1,476,611
Real estate
Consumer mortgages			1,691,682				32,840				131,141				2,907				198				15,107				1,873,875
Home equity			461,151				4,791				17,619				1,057				76				1,380				486,074
Agricultural			227,138				5,729				17,947				—				—				5,382				256,196
Commercial and industrial-owner occupied			1,202,111				31,087				82,816				369				—				16,720				1,333,103
Construction, acquisition and development			567,881				30,846				75,031				715				—				61,335				735,808
Commercial real estate			1,524,262				53,455				120,591				160				—				50,413				1,748,881
Credit cards			104,884				—				—				—				—				—				104,884
All other			600,807				8,397				10,196				601				10				1,546				621,557
Total loans		$	7,806,414			$	181,808			$	485,217			$	6,538			$	284			$	156,728			$	8,636,989
		September 30, 2012
		Pass				Special Mention				Substandard				Doubtful				Loss				Impaired				Total
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial		$	1,403,199			$	10,018			$	42,399			$	867			$	17			$	6,219			$	1,462,719
Real estate
Consumer mortgages			1,703,867				31,993				133,139				3,727				203				15,854				1,888,783
Home equity			467,219				4,788				17,901				1,002				285				1,638				492,833
Agricultural			232,741				4,684				14,726				20				—				5,562				257,733
Commercial and industrial-owner occupied			1,169,867				34,384				83,606				736				49				20,989				1,309,631
Construction, acquisition and development			607,759				42,128				85,349				703				—				87,753				823,692
Commercial real estate			1,517,138				45,500				138,606				70				—				37,202				1,738,516
Credit cards			101,405				—				—				—				—				—				101,405
All other			582,353				6,790				13,758				828				6				922				604,657
Total loans		$	7,785,548			$	180,285			$	529,484			$	7,953			$	560			$	176,139			$	8,679,969

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 16

January 23, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		As of
		Dec-12				Sep-12				Jun-12				Mar-12				Dec-11
Unpaid principal balance of impaired loans		$	206,072			$	225,581			$	259,703			$	266,483			$	287,099
Cumulative charge-offs on impaired loans			49,344				49,442				59,326				55,371				52,176
Impaired nonaccrual loan and lease outstanding balance			156,728				176,139				200,377				211,112				234,923
Other non-accrual loans and leases not impaired			50,513				43,599				39,869				42,115				41,875
Total non-accrual loans and leases		$	207,241			$	219,738			$	240,246			$	253,227			$	276,798
Allowance for impaired loans			10,541				18,205				23,939				25,546				39,708
Nonaccrual loans and leases, net of specific reserves		$	196,700			$	201,533			$	216,307			$	227,681			$	237,090
Loans and leases 90+ days past due, still accruing		$	1,210			$	1,442			$	1,632			$	1,698			$	3,434
Restructured loans and leases, still accruing			25,099				26,147				25,071				30,311				42,018
Total non-performing loans and leases		$	233,550			$	247,327			$	266,949			$	285,236			$	322,250
Allowance for impaired loans		$	10,541			$	18,205			$	23,939			$	25,546			$	39,708
Allowance for all other loans and leases			153,925				150,814				151,908				156,231				155,410
Total allowance for credit losses		$	164,466			$	169,019			$	175,847			$	181,777			$	195,118
Outstanding balance of impaired loans		$	156,728			$	176,139			$	200,377			$	211,112			$	234,923
Allowance for impaired loans			10,541				18,205				23,939				25,546				39,708
Net book value of impaired loans		$	146,187			$	157,934			$	176,438			$	185,566			$	195,215
Net book value of impaired loans as a % of unpaid principal balance			71	%			70	%			68	%			70	%			68	%
Coverage of other non-accrual loans and leases not impaired by the allowance for all other loans and leases			305	%			346	%			381	%			371	%			371	%
Coverage of non-performing loans and leases not impaired by the allowance for all other loans and leases			200	%			212	%			228	%			211	%			178	%

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 17

January 23, 2013

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)

 

		December 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		$	70,132			$	149,418			$	386,799			$	35,240			$	17,170			$	74,300			$	249,405			$	494,147			$	1,476,611
Real estate
Consumer mortgages			109,585				262,899				709,251				44,513				79,221				160,906				454,607				52,893				1,873,875
Home equity			60,037				38,082				164,019				22,520				64,710				73,351				62,649				706				486,074
Agricultural			7,461				79,269				68,298				3,782				11,948				13,941				66,979				4,518				256,196
Commercial and industrial-owner occupied			120,318				155,015				494,957				77,951				88,980				89,935				253,088				52,859				1,333,103
Construction, acquisition and development			92,454				68,034				217,763				35,880				77,091				93,414				141,206				9,966				735,808
Commercial real estate			208,676				331,575				353,067				189,993				104,101				98,811				392,027				70,631				1,748,881
Credit cards			—				—				—				—				—				—				—				104,884				104,884
All other			32,122				82,825				180,836				8,210				54,332				50,815				97,473				114,944				621,557
Total loans		$	700,785			$	1,167,117			$	2,574,990			$	418,089			$	497,553			$	655,473			$	1,717,434			$	905,548			$	8,636,989
CAD PORTFOLIO:
Multi-family construction		$	—			$	—			$	10			$	—			$	—			$	4,550			$	1,982			$	—			$	6,542
One-to-four family construction			27,048				12,189				42,948				8,040				10,051				41,461				35,184				471				177,392
Recreation and all other loans			1,520				8,726				12,654				301				3,897				3,719				14,023				—				44,840
Commercial construction			17,674				11,844				38,822				2,114				7,690				10,228				23,906				1,821				114,099
Commercial acquisition and development			15,068				17,006				51,471				9,757				25,786				14,802				26,357				1,299				161,546
Residential acquisition and development			31,144				18,270				71,858				15,668				29,667				18,654				39,753				6,375				231,389
Total CAD loans		$	92,454			$	68,035			$	217,763			$	35,880			$	77,091			$	93,414			$	141,205			$	9,966			$	735,808
NON-PERFORMING LOANS AND LEASES:
Commercial and industrial		$	1,734			$	1,043			$	552			$	735			$	23			$	165			$	2,776			$	3,216			$	10,244
Real estate
Consumer mortgages			3,666				5,846				10,445				592				765				3,769				7,631				7,972				40,686
Home equity			934				148				576				140				757				611				328				3				3,497
Agricultural			79				3,915				1,766				1,023				827				170				261				1				8,042
Commercial and industrial-owner occupied			6,443				4,975				10,070				—				1,700				2,974				1,857				242				28,261
Construction, acquisition and development			17,228				1,403				7,782				12,026				19,201				7,201				5,139				2,018				71,998
Commercial real estate			10,724				8,378				7,708				24,312				4,921				2,772				2,913				468				62,196
Credit cards			—				—				—				—				—				—				—				2,520				2,520
All other			428				2,240				1,438				15				671				744				558				12				6,106
Total loans		$	41,236			$	27,948			$	40,337			$	38,843			$	28,865			$	18,406			$	21,463			$	16,452			$	233,550
NON-PERFORMING LOANS AND LEASES AS A PERCENTAGE OF OUTSTANDING:
Commercial and industrial			2.47	%			0.70	%			0.14	%			2.09	%			0.13	%			0.22	%			1.11	%			0.65	%			0.69	%
Real estate
Consumer mortgages			3.35	%			2.22	%			1.47	%			1.33	%			0.97	%			2.34	%			1.68	%			15.07	%			2.17	%
Home equity			1.56	%			0.39	%			0.35	%			0.62	%			1.17	%			0.83	%			0.52	%			0.42	%			0.72	%
Agricultural			1.06	%			4.94	%			2.59	%			27.05	%			6.92	%			1.22	%			0.39	%			0.02	%			3.14	%
Commercial and industrial-owner occupied			5.35	%			3.21	%			2.03	%			—				1.91	%			3.31	%			0.73	%			0.46	%			2.12	%
Construction, acquisition and development			18.63	%			2.06	%			3.57	%			33.52	%			24.91	%			7.71	%			3.64	%			20.25	%			9.78	%
Commercial real estate			5.14	%			2.53	%			2.18	%			12.80	%			4.73	%			2.81	%			0.74	%			0.66	%			3.56	%
Credit cards			—				—				—				—				—				—				—				2.40	%			2.40	%
All other			1.33	%			2.70	%			0.80	%			0.18	%			1.23	%			1.46	%			0.57	%			0.01	%			0.98	%
Total loans			5.88	%			2.39	%			1.57	%			9.29	%			5.80	%			2.81	%			1.25	%			1.82	%			2.70	%

 

*	Excludes the Greater Memphis Area.

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 18

January 23, 2013

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

		December 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		$	395			$	—			$	106			$	—			$	—			$	—			$	—			$	—			$	501
Real estate			—				—				—				—				—				—				—				—				—
Consumer mortgages			1,714				173				2,220				—				961				624				760				3,665				10,117
Home equity			—				—				—				—				—				—				—				—				—
Agricultural			856				—				99				—				1,089				2,169				212				—				4,425
Commercial and industrial-owner occupied			155				146				1,602				—				2,630				66				146				—				4,745
Construction, acquisition and development			13,610				1,430				15,659				734				35,717				9,535				1,844				448				78,977
Commercial real estate			478				1,420				3				263				819				76				176				—				3,235
All other			46				16				227				92				734				12				89				32				1,248
Total loans		$	17,254			$	3,185			$	19,916			$	1,089			$	41,950			$	12,482			$	3,227			$	4,145			$	103,248

 

		Quarter Ended
		Dec-12				Sep-12				Jun-12				Mar-12				Dec-11
OTHER REAL ESTATE OWNED:
Balance, beginning of period		$	128,211			$	143,615			$	167,808			$	173,805			$	162,686
Additions to foreclosed properties
New foreclosed property			8,451				6,268				6,904				10,766				36,507
Reductions in foreclosed properties
Sales			(27,892	)			(15,392	)			(26,165	)			(11,771	)			(16,688	)
Writedowns			(5,522	)			(6,280	)			(4,932	)			(4,992	)			(8,700	)
Balance, end of period		$	103,248			$	128,211			$	143,615			$	167,808			$	173,805
FORECLOSED PROPERTY EXPENSE
Loss on sale of other real estate owned		$	4,203			$	765			$	2,708			$	770			$	711
Writedown of other real estate owned			5,522				6,280				4,932				4,992				8,700
Other foreclosed property expense			2,266				1,749				2,572				2,647				1,422
Total foreclosed property expense		$	11,991			$	8,794			$	10,212			$	8,409			$	10,833

 

*	Excludes the Greater Memphis Area.

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 19

January 23, 2013

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Dec-12				Sep-12				Jun-12				Mar-12				Dec-11
NONINTEREST REVENUE:
Mortgage lending		$	17,188			$	13,549			$	11,040			$	15,142			$	8,928
Credit card, debit card and merchant fees			8,125				8,270				7,787				7,523				7,783
Service charges			13,875				14,189				13,697				15,116				17,412
Trust income			3,391				3,101				3,139				2,282				3,348
Securities gains, net			152				39				177				74				18
Insurance commissions			20,502				23,519				22,964				23,153				19,416
Annuity fees			418				548				635				642				382
Brokerage commissions and fees			1,715				1,782				1,779				1,438				1,215
Bank-owned life insurance			1,899				1,750				1,812				2,613				2,007
Other miscellaneous income			3,636				3,673				3,438				4,377				4,826
Total noninterest revenue		$	70,901			$	70,420			$	66,468			$	72,360			$	65,335
NONINTEREST EXPENSE:
Salaries and employee benefits		$	77,203			$	74,829			$	77,661			$	74,931			$	70,512
Occupancy, net of rental income			10,643				10,944				10,487				10,066				10,315
Equipment			5,309				5,083				5,124				5,333				5,108
Deposit insurance assessments			3,103				3,998				3,994				5,383				5,674
Advertising			2,045				1,081				902				841				1,778
Foreclosed property expense			11,991				8,794				10,212				8,409				10,833
Telecommunications			2,168				2,118				2,023				2,206				2,110
Public relations			1,304				1,309				1,355				1,466				1,244
Data processing			2,714				2,312				2,444				2,764				2,398
Computer software			2,031				1,856				1,786				1,803				1,892
Amortization of intangibles			857				860				742				763				813
Legal			3,133				3,004				981				2,216				3,947
Postage and shipping			1,117				1,060				1,033				1,255				1,163
Other miscellaneous expense			19,601				16,540				17,762				18,244				18,069
Total noninterest expense		$	143,219			$	133,788			$	136,506			$	135,680			$	135,856
INSURANCE COMMISSIONS:
Property and casualty commissions		$	14,968			$	17,704			$	16,894			$	14,430			$	14,033
Life and health commissions			4,376				4,651				4,681				4,724				4,024
Risk management income			581				698				618				655				597
Other			577				466				771				3,344				762
Total insurance commissions		$	20,502			$	23,519			$	22,964			$	23,153			$	19,416

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 20

January 23, 2013

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Dec-12				Sep-12				Jun-12				Mar-12				Dec-11
MORTGAGE SERVICING RIGHTS:
Fair value, beginning of period		$	34,562			$	34,167			$	35,668			$	30,174			$	29,159
Additions to mortgage servicing rights:
Originations of servicing assets			5,146				5,784				4,076				3,525				3,754
Changes in fair value:
Due to payoffs/paydowns			(2,005	)			(2,181	)			(1,737	)			(1,726	)			(1,745	)
Due to change in valuation inputs or assumptions used in the valuation model			183				(3,206	)			(3,837	)			3,697				(991	)
Other changes in fair value			(4	)			(2	)			(3	)			(2	)			(3	)
Fair value, end of period		$	37,882			$	34,562			$	34,167			$	35,668			$	30,174
MORTGAGE LENDING REVENUE:
Production revenue:
Origination		$	15,131			$	15,326			$	13,119			$	9,720			$	8,308
Servicing			3,879				3,610				3,495				3,451				3,356
Payoffs/Paydowns			(2,005	)			(2,181	)			(1,737	)			(1,726	)			(1,745	)
Total production revenue			17,005				16,755				14,877				11,445				9,919
Market value adjustment			183				(3,206	)			(3,837	)			3,697				(991	)
Total mortgage lending revenue		$	17,188			$	13,549			$	11,040			$	15,142			$	8,928
AVAILABLE-FOR-SALE SECURITIES, at fair value
U.S. Government agencies		$	1,401,996			$	1,472,747			$	1,481,060			$	1,578,441			$	1,501,243
Government agency issued residential mortgage-back securities			366,875				338,230				360,489				385,146				404,610
Government agency issued commercial mortgage-back securities			91,445				90,306				35,895				31,647				34,599
Obligations of states and political subdivisions			565,873				574,559				577,629				568,642				563,520
Other			7,843				7,764				7,758				9,659				9,546
Total available-for-sale securities		$	2,434,032			$	2,483,606			$	2,462,831			$	2,573,535			$	2,513,518

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 21

January 23, 2013

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended December 31, 2012
(Taxable equivalent basis)		Average Balance				Interest				Yield/ Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income		$	8,741,691			$	104,608				4.76	%
Available-for-sale securities:
Taxable			1,993,245				8,840				1.76	%
Tax-exempt			460,786				6,281				5.42	%
Short-term investments			849,710				528				0.25	%
Total interest earning assets and revenue			12,045,432				120,257				3.97	%
Other assets			1,267,842
Less: allowance for credit losses			(170,081	)
Total		$	13,143,193
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand - interest bearing		$	4,703,500			$	3,588				0.30	%
Savings			1,117,297				606				0.22	%
Other time			2,635,281				8,749				1.32	%
Short-term borrowings			402,024				73				0.07	%
Junior subordinated debt			160,312				2,869				7.12	%
Long-term debt			33,500				349				4.14	%
Total interest bearing liabilities and expense			9,051,914				16,234				0.71	%
Demand deposits - noninterest bearing			2,482,168
Other liabilities			154,694
Total liabilities			11,688,776
Shareholders’ equity			1,454,417
Total		$	13,143,193
Net interest revenue						$	104,023
Net interest margin											3.44	%
Net interest rate spread											3.26	%
Interest bearing liabilities to interest earning assets											75.15	%
Net interest tax equivalent adjustment						$	3,162

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 22

January 23, 2013

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended September 30, 2012
(Taxable equivalent basis)		Average Balance				Interest				Yield/ Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income		$	8,835,590			$	107,756				4.85	%
Available-for-sale securities:
Taxable			2,022,294				9,439				1.86	%
Tax-exempt			458,907				6,322				5.48	%
Short-term investments			607,987				401				0.26	%
Total interest earning assets and revenue			11,924,778				123,918				4.13	%
Other assets			1,273,521
Less: allowance for credit losses			(179,283	)
Total		$	13,019,016
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand - interest bearing		$	4,704,896			$	3,889				0.33	%
Savings			1,092,802				686				0.25	%
Other time			2,729,878				9,482				1.38	%
Short-term borrowings			390,100				90				0.09	%
Junior subordinated debt			160,312				2,875				7.13	%
Long-term debt			33,500				349				4.14	%
Total interest bearing liabilities and expense			9,111,488				17,371				0.76	%
Demand deposits - noninterest bearing			2,328,948
Other liabilities			146,423
Total liabilities			11,586,859
Shareholders’ equity			1,432,157
Total		$	13,019,016
Net interest revenue						$	106,547
Net interest margin											3.55	%
Net interest rate spread											3.37	%
Interest bearing liabilities to interest earning assets											76.41	%
Net interest tax equivalent adjustment						$	3,168

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 23

January 23, 2013

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended June 30, 2012
(Taxable equivalent basis)		Average Balance				Interest				Yield/ Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income		$	8,812,867			$	109,260				4.99	%
Available-for-sale securities:
Taxable			2,068,725				10,298				2.00	%
Tax-exempt			452,207				6,478				5.76	%
Short-term investments			574,624				383				0.27	%
Total interest earning assets and revenue			11,908,423				126,419				4.27	%
Other assets			1,295,017
Less: allowance for credit losses			(185,209	)
Total		$	13,018,231
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand - interest bearing		$	4,769,340			$	4,184				0.35	%
Savings			1,074,912				691				0.26	%
Other time			2,815,753				10,275				1.47	%
Short-term borrowings			376,545				85				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			9,230,362				18,463				0.80	%
Demand deposits - noninterest bearing			2,248,914
Other liabilities			135,222
Total liabilities			11,614,498
Shareholders’ equity			1,403,733
Total		$	13,018,231
Net interest revenue						$	107,956
Net interest margin											3.65	%
Net interest rate spread											3.47	%
Interest bearing liabilities to interest earning assets											77.51	%
Net interest tax equivalent adjustment						$	3,215

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 24

January 23, 2013

 

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

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 25

January 23, 2013

 

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

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 26

January 23, 2013

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

 

		December 31,								September 30,
		2012				2011				2012
Tangible assets
Total assets		$	13,397,198			$	12,995,851			$	13,235,737
Less: Goodwill			275,173				271,297				275,173
Other identifiable intangible assets			17,329				16,613				17,932
Total tangible assets		$	13,104,696			$	12,707,941			$	12,942,632
Tangible shareholders’ equity
Total shareholders’ equity		$	1,449,052			$	1,262,912			$	1,446,703
Less: Goodwill			275,173				271,297				275,173
Other identifiable intangible assets			17,329				16,613				17,932
Total tangible shareholders’ equity		$	1,156,550			$	975,002			$	1,153,598
Total shares outstanding			94,437,552				83,483,796				94,440,710
Tangible shareholders’ equity to tangible assets*		$	12.25			$	11.68			$	12.22
Tangible book value per share**			8.83	%			7.67	%			8.91	%

 

*

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.

**

BancorpSouth, Inc. utilizes tangible book value per share when evaluating the performance of the Company. Tangible book value per share is defined by the Company as tangible shareholders’ equity divided by total common shares outstanding. Management believes that tangible book value per share is important to investors who are interested in changes from period to period in book value per share exclusive of changes in intangible assets.

 

-END -