Exhibit 99.1

News Release

 

 

 

Contact:
William L. Prater				Will Fisackerly
Senior Executive Vice President and				Senior Vice President and
Chief Financial Officer				Director of Corporate Finance
662/680-2536				662/680-2475

BancorpSouth Announces Third Quarter 2015 Financial Results

TUPELO, MS, October 19, 2015/PRNewswire — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and nine months ended September 30, 2015.

Highlights for the third quarter of 2015 included:

 

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Net income of $34.3 million or $0.36 per diluted share.

 

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Net operating income of $34.3 million or $0.36 per diluted share.

 

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Generated net loan growth of $212.0 million, or 8.4 percent on an annualized basis.

 

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Repurchased 2,882,000 shares of outstanding common stock at a weighted average price of $23.58.

 

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Mortgage lending revenue adversely impacted by a negative mortgage servicing rights (“MSR”) valuation adjustment of $5.3 million.

 

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Earnings for the quarter benefitted from a negative provision for credit losses of $3.0 million.

 

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Net interest margin improved to 3.59 percent as a result of stable loan yields and a shift in the earning asset mix.

 

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Continued progress toward improving cost structure reflected by a $1.7 million decline in total noninterest expense compared to the second quarter of 2015.

The Company reported net income of $34.3 million, or $0.36 per diluted share, for the third quarter of 2015 compared with net income of $28.8 million, or $0.30 per diluted share, for the third quarter of 2014 and net income of $39.7 million, or $0.41 per diluted share, for the second quarter of 2015. Additionally, the Company reported net income of $106.3 million, or $1.10 per diluted share, for the first nine months of 2015 compared to $88.1 million, or $0.92 per diluted share, for the first nine months of 2014.

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BancorpSouth, Inc.

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

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BXS Announces Third Quarter Results

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October 19, 2015

 

The Company reported net operating income (excluding merger related and other non-operating expenses) of $34.3 million, or $0.36 per diluted share, for the third quarter of 2015 compared to $30.8 million, or $0.32 per diluted share, for the third quarter of 2014 and $39.7 million, or $0.41 per diluted share, for the second quarter of 2015.

“Our third quarter results reflect yet another quarter of steady improvement in our core operating performance,” remarked Dan Rollins, BancorpSouth Chairman and Chief Executive Officer. “We are pleased to report net loan growth of $212.0 million, or 8.4 percent annualized. This growth, combined with stable loan yields, resulted in improvement to our net interest margin as well as growth in net interest income. We continue to improve our cost structure while growing our Company. Total non-interest expense declined $1.7 million compared to the second quarter. Finally, the general decline in the equity markets during the quarter provided us with an opportunity to initiate our share repurchase program, which was authorized late last year. During the quarter, we repurchased approximately 2.9 million shares, or half of the 5.8 million shares authorized for repurchase.”

Net Interest Revenue

Net interest revenue was $111.1 million for the third quarter of 2015, an increase of 5.2 percent from $105.6 million for the third quarter of 2014 and an increase of 3.5 percent from $107.3 million for the second quarter of 2015. The fully taxable equivalent net interest margin was 3.59 percent for the third quarter of 2015 compared to 3.62 percent for the third quarter of 2014 and 3.54 percent for the second quarter of 2015. Yields on loans and leases were 4.22 percent for the third quarter of 2015 compared with 4.36 percent for the third quarter of 2014 and 4.23 percent for the second quarter of 2015, while yields on total interest earning assets were 3.82 percent for the third quarter of 2015 compared with 3.89 percent for the third quarter of 2014 and 3.78 percent for the second quarter of 2015. The average cost of deposits was 0.22 percent for the third quarter of 2015 compared to 0.28 percent for the third quarter of 2014 and 0.23 percent for the second quarter of 2015.

Asset, Deposit and Loan Activity

Total assets were $13.8 billion at September 30, 2015 compared with $13.1 billion at September 30, 2014. Loans and leases, net of unearned income, were $10.2 billion at September 30, 2015 compared with $9.5 billion at September 30, 2014.

Total deposits were $11.1 billion at September 30, 2015 compared with $10.7 billion at September 30, 2014. A decrease in time deposits of $196.2 million, or 9.4 percent, at September 30, 2015 compared to September 30, 2014 was more than offset by growth in other lower cost deposits. Noninterest bearing demand deposits increased $242.3 million, or 8.6 percent, over the same period. Additionally, savings deposits increased $98.0 million, or 7.5 percent, while interest bearing demand deposits increased $296.4 million, or 6.6 percent, over the same period.

 

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BXS Announces Third Quarter Results

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October 19, 2015

 

At September 30, 2015, $645.6 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.43 percent.

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the quarter reflect a negative provision for credit losses of $3.0 million, compared to no recorded provision for the third quarter of 2014 and a negative provision of $5.0 million for the second quarter of 2015. Total non-performing assets (“NPAs”) were $113.9 million, or 1.11 percent of net loans and leases, at September 30, 2015 compared with $111.6 million, or 1.17 percent of net loans and leases, at September 30, 2014, and $103.7 million, or 1.04 percent of net loans and leases, at June 30, 2015.

Net charge-offs for the third quarter of 2015 were $2.3 million, compared with net charge-offs of $3.2 million for the third quarter of 2014 and net recoveries of $6.7 million for the second quarter of 2015. Gross charge-offs were $7.4 million for the third quarter of 2015, compared with $6.5 million for the third quarter of 2014 and $5.0 million for the second quarter of 2015. Gross recoveries of previously charged-off loans were $5.1 million for the third quarter of 2015, compared with $3.3 million for the third quarter of 2014 and $11.7 million for the second quarter of 2015. The elevated recoveries in the second quarter of this year were driven primarily by a single recovery of a previously charged-off loan totaling $6.0 million. Annualized net charge-offs were 0.09 percent of average loans and leases for the third quarter of 2015, compared with annualized net charge-offs of 0.13 percent for the third quarter of 2014 and annualized net recoveries of 0.27 percent for the second quarter of 2015.

Non-performing loans (“NPLs”) were $90.3 million, or 0.88 percent of net loans and leases, at September 30, 2015, compared with $68.9 million, or 0.72 percent of net loans and leases, at September 30, 2014, and $79.4 million, or 0.79 percent of net loans and leases, at June 30, 2015. The allowance for credit losses was $133.0 million, or 1.30 percent of net loans and leases, at September 30, 2015 compared with $144.0 million, or 1.51 percent of net loans and leases, at September 30, 2014 and $138.3 million, or 1.38 percent of net loans and leases, at June 30, 2015.

NPLs at September 30, 2015 consisted primarily of $70.2 million of nonaccrual loans, compared with $67.8 million of nonaccrual loans at June 30, 2015. Payments received on nonaccrual loans during the third quarter of 2015 totaled $11.0 million, compared with payments received on such loans of $16.1 million during the second quarter of 2015. NPLs at September 30, 2015 also included $1.4 million of loans 90 days or more past due and still accruing, compared with $1.6 million of such loans at June 30, 2015, and included restructured loans still accruing of $18.6 million at September 30, 2015, compared with $10.1 million of such loans at June 30, 2015. Early stage past due loans, representing loans 30-89 days past due, totaled $25.6 million at September 30, 2015 compared to $23.8 million at June 30, 2015.

Other real estate owned (“OREO”) decreased $0.6 million to $23.7 million during the third quarter of 2015 from $24.3 million at June 30, 2015. This net decrease reflected $1.3 million of OREO added through foreclosure, offset by sales of OREO of $1.4 million. Write-downs in the value of existing properties were $0.5 million for the third quarter of 2015 compared to $1.0 million for the second quarter of 2015. Sales of OREO during the third quarter of 2015 resulted in a net gain of $0.2 million compared to a net loss of $0.2 million for the second quarter of 2015. At September 30, 2015, OREO was carried at 42.8 percent of the aggregate loan balances at the time of foreclosure, compared with 42.6 percent at June 30, 2015.

 

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BXS Announces Third Quarter Results

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October 19, 2015

 

Noninterest Revenue

Noninterest revenue was $63.0 million for the third quarter of 2015, compared with $69.3 million for the third quarter of 2014 and $74.3 million for the second quarter of 2015. These results included a negative MSR valuation adjustment of $5.3 million for the third quarter of 2015 compared with a positive MSR valuation adjustment of $0.6 million for the third quarter of 2014 and a positive MSR valuation adjustment of $4.3 million for the second quarter of 2015. Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.

Excluding the MSR valuation adjustments, net mortgage lending revenue was $7.6 million for the third quarter of 2015, compared with $6.3 million for the third quarter of 2014 and $9.8 million for the second quarter of 2015. Mortgage origination volume for the third quarter of 2015 was $402.2 million, compared with $305.7 million for the third quarter of 2014 and $417.2 million for the second quarter of 2015.

Credit and debit card fee revenue was $9.3 million for the third quarter of 2015, compared with $9.0 million for the third quarter of 2014 and $9.3 million for the second quarter of 2015. Deposit service charge revenue was $12.2 million for the third quarter of 2015, compared with $13.1 million for the third quarter of 2014 and $11.5 million for the second quarter of 2015. Insurance commission revenue was $28.6 million for the third quarter of 2015, compared with $29.2 million for the third quarter of 2014 and $29.3 million for the second quarter of 2015. Wealth management revenue was $5.6 million for the third quarter of 2015, compared with $6.0 million for the third quarter of 2014 and $5.5 million for the second quarter of 2015.

Noninterest Expense

Noninterest expense for the third quarter of 2015 was $126.5 million, compared with $133.7 million for the third quarter of 2014 and $128.2 million for the second quarter of 2015. Salaries and employee benefits expense was $81.4 million for the third quarter of 2015 compared to $77.5 million for the third quarter of 2014 and $79.8 million for the second quarter of 2015. The increase in salaries and employee benefits during the first three quarters of 2015 reflect an increase in pension expense compared with the same period from the prior year. Total annual pension expense for 2015 is expected to be approximately $7 million higher than 2014 due to annual revisions to actuarial assumptions, including updates to the Society of Actuaries pension plan mortality tables. Foreclosed property expense was $0.8 million for the third quarter of 2015 compared with $5.7 million for the third quarter of 2014 and $1.6 million for the second quarter of 2015. Deposit insurance assessments were $2.2 million for the third quarter of 2015 compared to $2.1 million for the third quarter of 2014 and $2.4 million for the second quarter of 2015. Noninterest expense for the third quarter of 2014 included pre-tax costs totaling $3.1 million related to Bank Secrecy Act and anti-money laundering compliance remediation.

 

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BXS Announces Third Quarter Results

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October 19, 2015

 

Capital Management

The Company’s equity capitalization is comprised entirely of common stock. BancorpSouth’s ratio of shareholders’ equity to assets was 11.93 percent at September 30, 2015, compared with 12.32 percent at September 30, 2014 and 12.32 percent at June 30, 2015. The ratio of tangible shareholders’ equity to tangible assets was 9.88 percent at September 30, 2015, compared with 10.14 percent at September 30, 2014 and 10.26 percent at June 30, 2015.

Estimated regulatory capital ratios at September 30, 2015 were calculated in accordance with the Basel III capital framework. BancorpSouth is a “well capitalized” financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 12.29 percent at September 30, 2015 and total risk based capital of 13.45 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, for “well capitalized” classification.

Rollins added, “Earnings for the quarter were sufficient to fund balance sheet growth and maintain capital ratios at relatively consistent levels. The decline in capital ratios during the quarter is attributable to the repurchase of $68.0 million of the Company’s outstanding common stock.”

Transaction Closings and Announcements

On January 8, 2014, the Company announced the signing of a definitive merger agreement with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as “OIB”), headquartered in Monroe, Louisiana, pursuant to which Ouachita Bancshares Corp. will be merged with and into the Company. OIB operates 11 full-service banking offices along the I-20 corridor and has a loan production office in Madison, Mississippi. As of September 30, 2015, OIB, on a consolidated basis, reported total assets of $675.2 million, total loans of $455.8 million and total deposits of $559.1 million. Under the terms of the definitive agreement, the Company will issue approximately 3,675,000 shares of the Company’s common stock plus $22.875 million in cash for all outstanding shares of Ouachita Bancshares Corp.’s capital stock, subject to certain conditions and potential adjustments. The merger has been unanimously approved by the Board of Directors of each company and was approved by OIB shareholders on April 8, 2014. On February 25, 2015, the Company re-filed the merger application for the merger with Ouachita Bancshares Corp. with the appropriate regulatory agencies. On June 30, 2015, the Company announced the merger agreement was extended through December 31, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. The terms of the amended agreement provide for a minimum total deal value of $111.1 million but also allow Ouachita Bancshares Corp. to terminate the agreement if the average closing price of the Company’s common stock declines below a certain threshold prior to closing. The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

On January 21, 2014, the Company announced the signing of a definitive merger agreement with Central Community Corporation, headquartered in Temple, Texas, pursuant to which Central Community Corporation will be merged with and into the Company. Central Community

 

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BXS Announces Third Quarter Results

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October 19, 2015

 

Corporation is the parent company of First State Bank Central Texas (“First State Bank”), which is headquartered in Austin, Texas. First State Bank operates 31 full-service banking offices in central Texas. As of September 30, 2015, Central Community Corporation, on a consolidated basis, reported total assets of $1.5 billion, total loans of $603.5 million and total deposits of $1.2 billion. Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company’s common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation’s capital stock, subject to certain conditions and potential adjustments. The merger has been unanimously approved by the Board of Directors of each company and was approved by Central Community Corporation shareholders on April 24, 2014. On February 25, 2015, the Company re-filed the merger application for the merger with Central Community Corporation with the appropriate regulatory agencies. On June 30, 2015, the Company announced the merger agreement was extended through December 31, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. The terms of the amended agreement provide for a minimum total deal value of $202.5 million but also allow Central Community Corporation to terminate the agreement if the average closing price of the Company’s common stock declines below a certain threshold prior to closing. The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

For additional information regarding the status of the merger with Ouachita Bancshares Corp. and the status of the merger with Central Community Corporation, please refer to the Current Report on Form 8-K that was previously filed with the Securities and Exchange Commission (the “SEC”) on July 24, 2014, Part II, Item 5 of the Quarterly Report on Form 10-Q that was previously filed with the SEC on August 6, 2014, the Current Report on Form 8-K that was previously filed with the SEC on September 4, 2014, the Annual Report on Form 10-K that was previously filed with the SEC on February 24, 2015, and the Current Report on Form 8-K that was previously filed with the SEC on July 1, 2015.

Summary

Rollins concluded, “While certain items, including the MSR valuation adjustment, create volatility in our Company’s bottom line results, we continue to report a very similar story quarter after quarter. Our teammates have accepted the challenge to grow our Company across all product lines and geographies. Each quarter, different teams stand out. We are producing this growth while improving our cost structure as evident by declining noninterest expenses and improvement in our efficiency ratio. We are confident this momentum will result in continued improvement in operating metrics in the coming quarters.”

Conference Call

BancorpSouth will conduct a conference call to discuss its third quarter 2015 results on October 20, 2015, 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.

 

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BXS Announces Third Quarter Results

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About BancorpSouth, Inc.

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.8 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 286 commercial banking, mortgage, and insurance locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.

Forward-Looking Statements

Certain statements contained in this news release may not be based upon historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “foresee,” “hope,” “intend,” “may,” “might,” “plan,” “will,” or “would” or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the terms, timing and closings of the proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation, the Company’s ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program, the findings and results of the joint investigation by the Consumer Financial Protection Bureau (the “CFPB”) and the United States Department of Justice (“DOJ”) of the Company’s fair lending practices, the acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company’s products and services if the proposed mergers close, the outcome of any instituted, pending or threatened material litigation, amortization expense for intangible assets, goodwill impairments, loan impairment, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue, fair value determinations, the amount of the Company’s non-performing loans and leases, additions to OREO, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, continued weakness in the economic environment, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company’s reserve for losses from representation and warranty obligations, the Company’s foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, calculation of economic value of equity, impaired loan charge-offs, troubled debt restructurings, diversification of the Company’s revenue stream, liquidity needs and strategies, sources of funding, net interest margin, declaration and payment of dividends, cost saving initiatives, improvement in the Company’s efficiencies, operating expense trends, future acquisitions and consideration to be used therefor, the impact of litigation regarding debit card fees and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters.

The Company cautions readers not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors. These factors may include, but are not limited to, the Company’s ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program, the findings and results of the CFPB and the DOJ in their review of the Company’s fair lending practices, the ability of the Company, Ouachita Bancshares Corp. and Central Community Corporation to obtain regulatory approval of and close the proposed mergers, the potential impact upon the Company of the delay in the closings of these proposed mergers, the impact of any ongoing, pending or threatened litigation, administrative and investigatory matters involving the Company, conditions in the financial markets and economic conditions generally, the adequacy of the Company’s provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company’s OREO, limitations on the Company’s ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Act, and supervision of the Company’s operations, the short-term and long-term impact of changes to banking capital standards on the Company’s regulatory capital and liquidity, the impact of regulations on service charges on the Company’s core deposit accounts, the susceptibility of the Company’s business to local economic and environmental conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company’s ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of the loss of any key Company personnel, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the Company’s ability to adapt its products and services to evolving industry standards and consumer preferences, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company’s growth strategy, interruptions or breaches in the Company’s information system security, the failure of certain third-party vendors to perform, unfavorable ratings by rating agencies, dilution caused by the Company’s issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, other factors generally understood to affect the assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies and other factors detailed from time to time in the Company’s press and news releases, reports and other filings with the SEC. Forward-looking statements speak only as of the date that they were made, and, except as required by law, the Company does not undertake any obligation to update or revise forward-looking statements to reflect events or circumstances that occur after the date of this news release.

 

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BXS Announces Third Quarter Results

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October 19, 2015

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

 

		Quarter Ended 9/30/2015				Quarter Ended 6/30/2015				Quarter Ended 3/31/2015				Quarter Ended 12/31/2014				Quarter Ended 9/30/2014
Earnings Summary:
Interest revenue		$	118,201			$	114,630			$	113,497			$	114,237			$	113,922
Interest expense			7,131				7,321				7,424				7,792				8,309
Net interest revenue			111,070				107,309				106,073				106,445				105,613
Provision for credit losses			(3,000	)			(5,000	)			(5,000	)			—				—
Net interest revenue, after provision for credit losses			114,070				112,309				111,073				106,445				105,613
Noninterest revenue			62,953				74,314				73,315				63,513				69,278
Noninterest expense			126,450				128,177				136,933				130,046				133,699
Income before income taxes			50,573				58,446				47,455				39,912				41,192
Income tax expense			16,230				18,733				15,189				11,252				12,414
Net income		$	34,343			$	39,713			$	32,266			$	28,660			$	28,778
Balance Sheet - Period End Balances
Total assets		$	13,787,424			$	13,634,931			$	13,630,322			$	13,326,369			$	13,071,557
Total earning assets			12,663,944				12,492,532				12,468,322				12,163,897				11,929,416
Total securities			2,161,125				2,251,153				2,194,373				2,156,927				2,211,462
Loans and leases, net of unearned income			10,219,576				10,007,571				9,726,970				9,712,936				9,510,542
Allowance for credit losses			133,009				138,312				136,660				142,443				143,950
Total deposits			11,141,946				11,134,961				11,252,654				10,972,339				10,701,537
Long-term debt			71,868				73,962				76,055				78,148				81,742
Total shareholders’ equity			1,644,820				1,680,196				1,645,208				1,606,059				1,610,543
Balance Sheet - Average Balances
Total assets		$	13,632,581			$	13,516,546			$	13,457,668			$	13,131,130			$	12,987,103
Total earning assets			12,548,967				12,443,960				12,398,058				12,038,265				11,892,493
Total securities			2,207,935				2,211,931				2,190,989				2,180,000				2,272,114
Loans and leases, net of unearned income			10,110,995				9,868,318				9,670,987				9,579,059				9,393,709
Total deposits			11,140,542				11,148,246				11,126,210				10,802,194				10,662,841
Long-term debt			71,868				73,962				76,078				79,387				81,742
Total shareholders’ equity			1,680,123				1,659,991				1,624,496				1,613,239				1,600,721
Nonperforming Assets:
Non-accrual loans and leases		$	70,237			$	67,766			$	54,418			$	58,052			$	54,612
Loans and leases 90+ days past due, still accruing			1,436				1,568				1,615				2,763				1,925
Restructured loans and leases, still accruing			18,578				10,109				5,433				10,920				12,398
Non-performing loans (NPLs)			90,251				79,443				61,466				71,735				68,935
Other real estate owned			23,696				24,299				27,889				33,984				42,691
Non-performing assets (NPAs)		$	113,947			$	103,742			$	89,355			$	105,719			$	111,626
Financial Ratios and Other Data:
Return on average assets			1.00	%			1.18	%			0.97	%			0.87	%			0.88	%
Return on average shareholders’ equity			8.11	%			9.60	%			8.06	%			7.05	%			7.13	%
Return on tangible equity			10.23	%			11.66	%			9.84	%			8.81	%			8.83	%
Pre-tax pre-provision return on average assets			1.38	%			1.59	%			1.29	%			1.21	%			1.26	%
Noninterest income to average assets			1.83	%			2.21	%			2.21	%			1.92	%			2.12	%
Noninterest expense to average assets			3.68	%			3.80	%			4.13	%			3.93	%			4.08	%
Net interest margin-fully taxable equivalent			3.59	%			3.54	%			3.56	%			3.60	%			3.62	%
Net interest rate spread			3.49	%			3.44	%			3.46	%			3.49	%			3.50	%
Efficiency ratio (tax equivalent)			71.56	%			69.52	%			75.17	%			75.25	%			75.19	%
Loan/deposit ratio			91.72	%			89.88	%			86.44	%			88.52	%			88.87	%
Price to earnings mult (avg)			16.98				18.80				18.43				18.45				16.64
Market value to book value			135.80	%			148.34	%			136.26	%			134.91	%			120.13	%
Market value to book value (avg)			140.68	%			142.10	%			127.91	%			130.16	%			129.54	%
Market value to tangible book value			167.71	%			182.42	%			168.52	%			167.95	%			149.58	%
Market value to tangible book value (avg)			173.74	%			174.75	%			158.20	%			162.04	%			161.30	%
Headcount FTE			3,903				3,935				3,924				3,948				3,938

 

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BXS Announces Third Quarter Results

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October 19, 2015

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

 

		Quarter Ended 9/30/2015				Quarter Ended 6/30/2015				Quarter Ended 3/31/2015				Quarter Ended 12/31/2014				Quarter Ended 9/30/2014
Credit Quality Ratios:
Net (recoveries) charge-offs to average loans and leases (annualized)			0.09	%			(0.27	%)			0.03	%			0.06	%			0.13	%
Provision for credit losses to average loans and leases (annualized)			(0.12	%)			(0.20	%)			(0.21	%)			0.00	%			0.00	%
Allowance for credit losses to net loans and leases			1.30	%			1.38	%			1.40	%			1.47	%			1.51	%
Allowance for credit losses to non-performing loans and leases			147.38	%			174.10	%			222.33	%			198.57	%			208.82	%
Allowance for credit losses to non-performing assets			116.73	%			133.32	%			152.94	%			134.74	%			128.96	%
Non-performing loans and leases to net loans and leases			0.88	%			0.79	%			0.63	%			0.74	%			0.72	%
Non-performing assets to net loans and leases			1.11	%			1.04	%			0.92	%			1.09	%			1.17	%
Equity Ratios:
Total shareholders’ equity to total assets			11.93	%			12.32	%			12.07	%			12.05	%			12.32	%
Tangible shareholders’ equity to tangible assets			9.88	%			10.26	%			9.99	%			9.92	%			10.14	%
Capital Adequacy:
Common Equity Tier 1 capital			12.08	%			12.60	%			12.60	%			N/A				N/A
Tier 1 capital			12.29	%			12.81	%			12.81	%			13.26	%			13.18	%
Total capital			13.45	%			14.04	%			14.07	%			14.52	%			14.43	%
Tier 1 leverage capital			10.56	%			10.96	%			10.71	%			10.55	%			10.47	%
Estimated for current quarter
Common Share Data:
Basic earnings per share		$	0.36			$	0.41			$	0.33			$	0.30			$	0.30
Diluted earnings per share			0.36				0.41				0.33				0.30				0.30
Cash dividends per share			0.10				0.08				0.08				0.08				0.08
Book value per share			17.50				17.37				17.04				16.69				16.77
Tangible book value per share			14.17				14.12				13.78				13.40				13.46
Market value per share (last)			23.77				25.76				23.22				22.51				20.14
Market value per share (high)			26.54				26.68				23.68				23.28				25.43
Market value per share (low)			22.09				22.83				19.64				19.22				20.11
Market value per share (avg)			24.62				24.68				21.80				21.72				21.72
Dividend payout ratio			28.01	%			18.25	%			22.40	%			25.17	%			25.03	%
Total shares outstanding			93,969,994				96,755,530				96,544,502				96,254,903				96,065,021
Average shares outstanding - basic			96,202,871				96,625,794				96,359,885				96,173,000				96,052,260
Average shares outstanding - diluted			96,467,728				96,957,441				96,653,401				96,506,827				96,373,950
Yield/Rate:
(Taxable equivalent basis)
Loans, loans held for sale, and leases net of unearned income			4.22	%			4.23	%			4.31	%			4.30	%			4.36	%
Available-for-sale securities:
Taxable			1.40	%			1.40	%			1.54	%			1.43	%			1.42	%
Tax-exempt			5.32	%			5.44	%			5.40	%			5.30	%			5.37	%
Short-term investments			0.20	%			0.24	%			0.22	%			0.24	%			0.22	%
Total interest earning assets and revenue			3.82	%			3.78	%			3.80	%			3.85	%			3.89	%
Deposits			0.22	%			0.23	%			0.24	%			0.25	%			0.28	%
Demand - interest bearing			0.18	%			0.19	%			0.18	%			0.18	%			0.17	%
Savings			0.12	%			0.12	%			0.12	%			0.12	%			0.12	%
Other time			0.76	%			0.79	%			0.82	%			0.87	%			0.96	%
Short-term borrowings			0.12	%			0.11	%			0.12	%			0.11	%			0.10	%
Total int bearing dep & s/t borrowings			0.30	%			0.31	%			0.31	%			0.33	%			0.36	%
Junior subordinated debt			2.87	%			2.86	%			2.84	%			2.82	%			2.81	%
Long-term debt			2.91	%			2.90	%			2.88	%			2.86	%			2.85	%
Total interest bearing liabilities and expense			0.32	%			0.34	%			0.34	%			0.36	%			0.39	%
Interest bearing liabilities to interest earning assets			69.68	%			70.36	%			71.13	%			70.57	%			71.07	%
Net interest tax equivalent adjustment		$	2,558			$	2,628			$	2,653			$	2,736			$	2,810

 

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BXS Announces Third Quarter Results

Page 10

October 19, 2015

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

 

		Sep-15				Jun-15				Mar-15				Dec-14				Sep-14
		(Dollars in thousands)
Assets
Cash and due from banks		$	159,923			$	183,541			$	199,337			$	204,231			$	169,226
Interest bearing deposits with other banks			113,068				34,438				360,469				153,019				70,408
Available-for-sale securities, at fair value			2,161,125				2,251,153				2,194,373				2,156,927				2,211,462
Loans and leases			10,254,013				10,041,455				9,761,555				9,749,540				9,546,250
Less: Unearned income			34,437				33,884				34,585				36,604				35,708
Allowance for credit losses			133,009				138,312				136,660				142,443				143,950
Net loans and leases			10,086,567				9,869,259				9,590,310				9,570,493				9,366,592
Loans held for sale			170,175				199,370				186,510				141,015				137,005
Premises and equipment, net			304,317				303,837				305,335				304,943				307,497
Accrued interest receivable			41,599				41,065				42,933				41,985				42,311
Goodwill			291,498				291,498				291,498				291,498				291,498
Other identifiable intangibles			21,466				22,415				23,476				24,508				25,619
Bank owned life insurance			249,825				247,983				246,148				247,076				243,827
Other real estate owned			23,696				24,299				27,889				33,984				42,691
Other assets			164,165				166,073				162,044				156,690				163,421
Total Assets		$	13,787,424			$	13,634,931			$	13,630,322			$	13,326,369			$	13,071,557
Liabilities
Deposits:
Demand: Noninterest bearing		$	3,053,439			$	2,911,972			$	2,914,949			$	2,778,686			$	2,811,156
Interest bearing			4,794,656				4,881,469				4,979,710				4,868,054				4,498,275
Savings			1,409,856				1,407,616				1,395,857				1,331,963				1,311,874
Other time			1,883,995				1,933,904				1,962,138				1,993,636				2,080,232
Total deposits			11,141,946				11,134,961				11,252,654				10,972,339				10,701,537
Federal funds purchased and securities sold under agreement to repurchase			425,203				375,980				384,829				388,166				431,428
Short-term Federal Home Loan Bank borrowings and other short-term borrowing			224,500				92,500				1,500				3,500				2,000
Accrued interest payable			3,353				3,494				3,371				3,400				3,894
Junior subordinated debt securities			23,198				23,198				23,198				23,198				23,198
Long-term debt			71,868				73,962				76,055				78,148				81,742
Other liabilities			252,536				250,640				243,507				251,559				217,215
Total Liabilities			12,142,604				11,954,735				11,985,114				11,720,310				11,461,014
Shareholders’ Equity
Common stock			234,925				241,889				241,361				240,637				240,165
Capital surplus			278,998				337,272				331,016				324,271				322,488
Accumulated other comprehensive loss			(36,355	)			(41,288	)			(37,033	)			(43,686	)			(15,513	)
Retained earnings			1,167,252				1,142,323				1,109,864				1,084,837				1,063,403
Total Shareholders’ Equity			1,644,820				1,680,196				1,645,208				1,606,059				1,610,543
Total Liabilities & Shareholders’ Equity		$	13,787,424			$	13,634,931			$	13,630,322			$	13,326,369			$	13,071,557

 

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BXS Announces Third Quarter Results

Page 11

October 19, 2015

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

 

		Sep-15				Jun-15				Mar-15				Dec-14				Sep-14
		(Dollars in thousands)
Assets
Cash and due from banks		$	159,569			$	152,792			$	132,734			$	166,941			$	155,876
Interest bearing deposits with other banks			72,438				212,634				426,792				165,713				120,707
Available-for-sale securities, at fair value			2,207,935				2,211,931				2,190,989				2,180,000				2,272,114
Loans and leases			10,144,874				9,903,034				9,706,941				9,615,125				9,430,043
Less: Unearned income			33,879				34,716				35,954				36,066				36,334
Allowance for credit losses			137,547				140,483				141,299				143,842				146,592
Net loans and leases			9,973,448				9,727,835				9,529,688				9,435,217				9,247,117
Loans held for sale			157,598				151,077				109,291				113,493				105,964
Premises and equipment, net			304,948				305,335				305,277				306,630				309,373
Accrued interest receivable			38,847				38,268				39,279				39,034				38,758
Goodwill			291,498				291,498				291,498				291,498				291,498
Other identifiable intangibles			21,812				22,780				23,834				24,910				26,031
Bank owned life insurance			248,798				246,872				246,538				245,584				242,718
Other real estate owned			24,008				27,190				32,062				39,209				49,123
Other assets			131,682				128,334				129,686				122,901				127,824
Total Assets		$	13,632,581			$	13,516,546			$	13,457,668			$	13,131,130			$	12,987,103
Liabilities
Deposits:
Demand: Noninterest bearing		$	2,992,903			$	2,895,451			$	2,807,816			$	2,837,919			$	2,766,626
Interest bearing			4,822,567				4,899,467				4,985,577				4,617,998				4,480,008
Savings			1,413,187				1,404,336				1,358,565				1,321,000				1,308,184
Other time			1,911,885				1,948,992				1,974,252				2,025,277				2,108,023
Total deposits			11,140,542				11,148,246				11,126,210				10,802,194				10,662,841
Federal funds purchased and securities sold under agreement to repurchase			439,503				399,447				398,237				426,842				444,017
Short-term Federal Home Loan Bank borrowings and other short-term borrowing			62,136				6,555				3,056				2,261				6,489
Accrued interest payable			3,600				3,457				3,338				3,630				3,940
Junior subordinated debt securities			23,198				23,198				23,198				23,198				23,198
Long-term debt			71,868				73,962				76,078				79,387				81,742
Other liabilities			211,611				201,690				203,055				180,379				164,155
Total Liabilities			11,952,458				11,856,555				11,833,172				11,517,891				11,386,382
Shareholders’ Equity
Common stock			240,473				241,540				240,992				240,436				240,123
Capital surplus			325,118				332,993				326,476				323,372				322,219
Accumulated other comprehensive loss			(40,476	)			(38,534	)			(39,529	)			(22,747	)			(14,827	)
Retained earnings			1,155,008				1,123,992				1,096,557				1,072,178				1,053,206
Total Shareholders’ Equity			1,680,123				1,659,991				1,624,496				1,613,239				1,600,721
Total Liabilities & Shareholders’ Equity		$	13,632,581			$	13,516,546			$	13,457,668			$	13,131,130			$	12,987,103

 

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BXS Announces Third Quarter Results

Page 12

October 19, 2015

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

 

		Quarter Ended																				YTD
		Sep-15				Jun-15				Mar-15				Dec-14				Sep-14				Sep-15				Sep-14
INTEREST REVENUE:
Loans and leases		$	107,086			$	103,428			$	102,135			$	103,172			$	102,681			$	312,649			$	301,387
Deposits with other banks			36				126				236				101				68				398				431
Available-for-sale securities:
Taxable			6,490				6,424				6,844				6,429				6,646				19,758				21,326
Tax-exempt			3,226				3,335				3,377				3,471				3,607				9,938				10,991
Loans held for sale			1,363				1,317				905				1,064				920				3,585				1,885
Total interest revenue			118,201				114,630				113,497				114,237				113,922				346,328				336,020
INTEREST EXPENSE:
Interest bearing demand			2,209				2,262				2,183				2,070				1,956				6,654				5,781
Savings			431				426				412				411				410				1,269				1,203
Other time			3,646				3,827				4,008				4,453				5,083				11,481				16,222
Federal funds purchased and securities sold under agreement to repurchase			104				85				82				89				84				271				242
Long-term debt			571				556				577				603				612				1,704				1,860
Junior subordinated debt			168				165				163				165				164				496				494
Other			2				—				(1	)			1				—				1				1
Total interest expense			7,131				7,321				7,424				7,792				8,309				21,876				25,803
Net interest revenue			111,070				107,309				106,073				106,445				105,613				324,452				310,217
Provision for credit losses			(3,000	)			(5,000	)			(5,000	)			—				—				(13,000	)			—
Net interest revenue, after provision for credit losses			114,070				112,309				111,073				106,445				105,613				337,452				310,217
NONINTEREST REVENUE:
Mortgage lending			2,339				14,102				8,567				3,250				6,938				25,008				19,421
Credit card, debit card and merchant fees			9,282				9,298				8,539				9,921				8,972				27,119				25,382
Deposit service charges			12,150				11,527				11,252				12,538				13,111				34,929				38,084
Security gains, net			33				41				14				18				18				88				19
Insurance commissions			28,584				29,319				33,493				25,376				29,246				91,396				89,466
Wealth Management			5,567				5,508				6,210				5,826				5,961				17,285				17,705
Other			4,998				4,519				5,240				6,584				5,032				14,757				15,556
Total noninterest revenue			62,953				74,314				73,315				63,513				69,278				210,582				205,633
NONINTEREST EXPENSE:
Salaries and employee benefits			81,354				79,759				81,179				76,751				77,453				242,292				231,077
Occupancy, net of rental income			10,819				10,419				10,194				10,500				10,313				31,432				30,845
Equipment			3,742				4,024				3,974				3,996				4,205				11,740				12,873
Deposit insurance assessments			2,191				2,377				2,311				2,430				2,125				6,879				5,760
Other			28,344				31,598				39,275				36,369				39,603				99,217				107,805
Total noninterest expenses			126,450				128,177				136,933				130,046				133,699				391,560				388,360
Income before income taxes			50,573				58,446				47,455				39,912				41,192				156,474				127,490
Income tax expense			16,230				18,733				15,189				11,252				12,414				50,152				39,400
Net income		$	34,343			$	39,713			$	32,266			$	28,660			$	28,778			$	106,322			$	88,090
Net income per share: Basic		$	0.36			$	0.41			$	0.33			$	0.30			$	0.30			$	1.10			$	0.92
Diluted		$	0.36			$	0.41			$	0.33			$	0.30			$	0.30			$	1.10			$	0.92

 

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BXS Announces Third Quarter Results

Page 13

October 19, 2015

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Sep-15				Jun-15				Mar-15				Dec-14				Sep-14
LOAN AND LEASE PORTFOLIO:
Commercial and industrial		$	1,710,497			$	1,730,142			$	1,676,366			$	1,746,486			$	1,714,012
Real estate
Consumer mortgages			2,447,132				2,374,122				2,301,112				2,257,726				2,191,265
Home equity			573,566				558,460				538,042				531,374				518,263
Agricultural			252,381				239,884				236,898				239,616				242,023
Commercial and industrial-owner occupied			1,605,811				1,596,244				1,518,153				1,522,536				1,508,679
Construction, acquisition and development			900,875				860,407				892,730				853,623				819,636
Commercial real estate			2,141,398				2,081,394				1,993,473				1,961,977				1,916,577
Credit cards			109,576				110,552				106,287				113,426				109,464
All other			478,340				456,366				463,909				486,172				490,623
Total loans		$	10,219,576			$	10,007,571			$	9,726,970			$	9,712,936			$	9,510,542
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period		$	138,312			$	136,660			$	142,443			$	143,950			$	147,132
Loans and leases charged-off:
Commercial and industrial			(2,010	)			(1,436	)			(383	)			(1,179	)			(306	)
Real estate
Consumer mortgages			(1,382	)			(575	)			(892	)			(900	)			(1,510	)
Home equity			(314	)			(245	)			(498	)			(93	)			(510	)
Agricultural			(9	)			—				(8	)			(4	)			(47	)
Commercial and industrial-owner occupied			(645	)			(404	)			(394	)			(220	)			(1,229	)
Construction, acquisition and development			(203	)			(272	)			(343	)			(566	)			(1,458	)
Commercial real estate			(1,477	)			(1,117	)			(1,007	)			(463	)			(70	)
Credit cards			(706	)			(527	)			(676	)			(580	)			(612	)
All other			(628	)			(441	)			(579	)			(847	)			(743	)
Total loans charged-off			(7,374	)			(5,017	)			(4,780	)			(4,852	)			(6,485	)
Recoveries:
Commercial and industrial			897				282				502				298				565
Real estate
Consumer mortgages			461				1,024				612				821				952
Home equity			90				185				241				102				157
Agricultural			59				36				269				16				45
Commercial and industrial-owner occupied			1,831				146				550				216				460
Construction, acquisition and development			1,084				8,978				604				897				392
Commercial real estate			187				600				720				623				286
Credit cards			170				183				153				160				116
All other			292				235				346				212				330
Total recoveries			5,071				11,669				3,997				3,345				3,303
Net recoveries (charge-offs)			(2,303	)			6,652				(783	)			(1,507	)			(3,182	)
Provision charged to operating expense			(3,000	)			(5,000	)			(5,000	)			—				—
Balance, end of period		$	133,009			$	138,312			$	136,660			$	142,443			$	143,950
Average loans for period		$	10,110,995			$	9,868,318			$	9,670,987			$	9,579,059			$	9,393,709
Ratio:
Net (recoveries) charge-offs to average loans (annualized)			0.09	%			(0.27	%)			0.03	%			0.06	%			0.13	%

 

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BXS Announces Third Quarter Results

Page 14

October 19, 2015

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Sep-15				Jun-15				Mar-15				Dec-14				Sep-14
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial		$	15,697			$	9,740			$	3,923			$	3,934			$	2,786
Real estate
Consumer mortgages			21,959				21,636				21,435				23,668				23,408
Home equity			3,664				3,550				2,269				2,253				2,073
Agricultural			484				259				259				291				638
Commercial and industrial-owner occupied			12,690				14,007				9,687				11,190				7,495
Construction, acquisition and development			4,240				5,411				5,111				4,162				6,070
Commercial real estate			10,730				12,397				11,107				11,915				11,102
Credit cards			215				157				118				133				168
All other			558				609				509				506				872
Total nonaccrual loans and leases		$	70,237			$	67,766			$	54,418			$	58,052			$	54,612
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and industrial		$	58			$	20			$	30			$	41			$	60
Real estate
Consumer mortgages			1,068				1,022				1,256				1,828				1,590
Home equity			—				141				—				—				20
Agricultural			—				—				—				—				—
Commercial and industrial-owner occupied			—				14				—				39				—
Construction, acquisition and development			—				—				—				387				—
Commercial real estate			—				—				—				137				—
Credit cards			310				342				329				327				255
All other			—				29				—				4				—
Total loans and leases 90+ days past due, still accruing			1,436				1,568				1,615				2,763				1,925
Restructured Loans and Leases, Still Accruing			18,578				10,109				5,433				10,920				12,398
Total non-performing loans and leases			90,251				79,443				61,466				71,735				68,935
OTHER REAL ESTATE OWNED:			23,696				24,299				27,889				33,984				42,691
Total Non-performing Assets		$	113,947			$	103,742			$	89,355			$	105,719			$	111,626
Additions to Nonaccrual Loans and Leases During the Quarter		$	22,271			$	35,315			$	23,607			$	21,952			$	16,707
Loans and Leases 30-89 Days Past Due, Still Accruing:
Commercial and industrial		$	4,985			$	3,081			$	3,270			$	2,319			$	3,753
Real estate
Consumer mortgages			10,789				10,622				9,955				11,412				13,013
Home equity			1,455				2,527				2,594				2,047				1,315
Agricultural			393				116				161				366				190
Commercial and industrial-owner occupied			3,888				2,643				3,026				912				2,364
Construction, acquisition and development			1,218				1,120				5,471				4,811				1,036
Commercial real estate			798				1,651				3,032				1,510				926
Credit cards			788				529				581				739				602
All other			1,334				1,481				1,014				1,698				1,196
Total Loans and Leases 30-89 days past due, still accruing		$	25,648			$	23,770			$	29,104			$	25,814			$	24,395
Credit Quality Ratios:
Provision for credit losses to average loans and leases (annualized)			(0.12	%)			(0.20	%)			(0.21	%)			0.00	%			0.00	%
Allowance for credit losses to net loans and leases			1.30	%			1.38	%			1.40	%			1.47	%			1.51	%
Allowance for credit losses to non-performing loans and leases			147.38	%			174.10	%			222.33	%			198.57	%			208.82	%
Allowance for credit losses to non-performing assets			116.73	%			133.32	%			152.94	%			134.74	%			128.96	%
Non-performing loans and leases to net loans and leases			0.88	%			0.79	%			0.63	%			0.74	%			0.72	%
Non-performing assets to net loans and leases			1.11	%			1.04	%			0.92	%			1.09	%			1.17	%

 

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BXS Announces Third Quarter Results

Page 15

October 19, 2015

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		September 30, 2015
		Pass				Special Mention				Substandard				Doubtful				Loss				Impaired				Total
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial		$	1,671,522			$	—			$	24,967			$	—			$	—			$	14,008			$	1,710,497
Real estate
Consumer mortgages			2,369,160				—				73,753				107				—				4,112				2,447,132
Home equity			563,119				—				8,645				—				—				1,802				573,566
Agricultural			243,814				—				8,235				—				—				332				252,381
Commercial and industrial-owner occupied			1,541,771				—				55,289				224				—				8,527				1,605,811
Construction, acquisition and development			870,595				—				27,243				430				—				2,607				900,875
Commercial real estate			2,072,229				—				59,514				410				—				9,245				2,141,398
Credit cards			109,576				—				—				—				—				—				109,576
All other			471,633				—				6,604				—				—				103				478,340
Total loans		$	9,913,419			$	—			$	264,250			$	1,171			$	—			$	40,736			$	10,219,576
		June 30, 2015
		Pass				Special Mention				Substandard				Doubtful				Loss				Impaired				Total
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial		$	1,688,364			$	695			$	33,809			$	107			$	—			$	7,167			$	1,730,142
Real estate
Consumer mortgages			2,288,980				—				81,312				226				—				3,604				2,374,122
Home equity			547,169				—				9,480				—				—				1,811				558,460
Agricultural			232,626				—				7,258				—				—				—				239,884
Commercial and industrial-owner occupied			1,538,436				—				47,991				233				—				9,584				1,596,244
Construction, acquisition and development			826,039				—				30,309				444				—				3,615				860,407
Commercial real estate			2,016,614				—				55,452				295				—				9,033				2,081,394
Credit cards			110,552				—				—				—				—				—				110,552
All other			443,484				—				12,583				—				—				299				456,366
Total loans		$	9,692,264			$	695			$	278,194			$	1,305			$	—			$	35,113			$	10,007,571

 

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BXS Announces Third Quarter Results

Page 16

October 19, 2015

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)

 

		September 30, 2015
		Alabama and Florida Panhandle				Arkansas				Louisiana				Mississippi				Missouri				Tennessee				Texas				Other				Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial		$	156,906			$	202,404			$	199,453			$	592,008			$	68,073			$	114,479			$	238,192			$	138,982			$	1,710,497
Real estate
Consumer mortgages			285,916				334,245				218,535				823,486				73,144				269,128				426,229				16,449				2,447,132
Home equity			80,490				39,037				62,196				219,209				22,330				139,264				9,310				1,730				573,566
Agricultural			6,246				76,058				30,511				79,688				3,109				12,935				43,834				—				252,381
Commercial and industrial-owner occupied			182,334				189,991				185,937				669,397				57,543				130,355				190,254				—				1,605,811
Construction, acquisition and development			106,784				100,059				77,098				293,502				22,768				135,188				165,476				—				900,875
Commercial real estate			336,677				349,996				234,714				590,385				203,867				175,412				250,079				268				2,141,398
Credit cards			—				—				—				—				—				—				—				109,576				109,576
All other			73,139				49,215				31,516				189,538				3,925				43,360				61,285				26,362				478,340
Total loans		$	1,228,492			$	1,341,005			$	1,039,960			$	3,457,213			$	454,759			$	1,020,121			$	1,384,659			$	293,367			$	10,219,576
NON-PERFORMING LOANS AND LEASES:
Commercial and industrial		$	1,272			$	1,047			$	576			$	11,261			$	—			$	18			$	2,075			$	143			$	16,392
Real estate
Consumer mortgages			1,184				3,442				672				8,207				1,181				1,124				1,176				6,592				23,578
Home equity			789				1,292				524				510				—				547				—				2				3,664
Agricultural			69				—				14				374				—				27				—				—				484
Commercial and industrial-owner occupied			513				2,278				626				11,977				990				200				259				—				16,843
Construction, acquisition and development			166				729				198				1,495				1,730				1,473				65				—				5,856
Commercial real estate			1,062				1,235				2,548				12,381				310				2,489				1,227				—				21,252
Credit cards			—				—				—				—				—				—				—				1,343				1,343
All other			103				141				199				218				—				177				—				1				839
Total loans		$	5,158			$	10,164			$	5,357			$	46,423			$	4,211			$	6,055			$	4,802			$	8,081			$	90,251
NON-PERFORMING LOANS AND LEASES AS A PERCENTAGE OF OUTSTANDING:
Commercial and industrial			0.81	%			0.52	%			0.29	%			1.90	%			0.00	%			0.02	%			0.87	%			0.10	%			0.96	%
Real estate
Consumer mortgages			0.41	%			1.03	%			0.31	%			1.00	%			1.61	%			0.42	%			0.28	%			40.08	%			0.96	%
Home equity			0.98	%			3.31	%			0.84	%			0.23	%			0.00	%			0.39	%			0.00	%			0.12	%			0.64	%
Agricultural			1.10	%			0.00	%			0.05	%			0.47	%			0.00	%			0.21	%			0.00	%			0.00	%			0.19	%
Commercial and industrial-owner occupied			0.28	%			1.20	%			0.34	%			1.79	%			1.72	%			0.15	%			0.14	%			0.00	%			1.05	%
Construction, acquisition and development			0.16	%			0.73	%			0.26	%			0.51	%			7.60	%			1.09	%			0.04	%			0.00	%			0.65	%
Commercial real estate			0.32	%			0.35	%			1.09	%			2.10	%			0.15	%			1.42	%			0.49	%			0.00	%			0.99	%
Credit cards			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%			1.23	%			1.23	%
All other			0.14	%			0.29	%			0.63	%			0.12	%			0.00	%			0.41	%			0.00	%			0.00	%			0.18	%
Total loans			0.42	%			0.76	%			0.52	%			1.34	%			0.93	%			0.59	%			0.35	%			2.75	%			0.88	%

 

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BXS Announces Third Quarter Results

Page 17

October 19, 2015

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

		September 30, 2015
		Alabama and Florida Panhandle				Arkansas				Louisiana				Mississippi				Missouri				Tennessee				Texas				Other				Total
OTHER REAL ESTATE OWNED:
Commercial and industrial		$	84			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	84
Real estate
Consumer mortgages			214				116				53				2,039				—				180				4				—				2,606
Home equity			—				—				—				101				—				—				—				—				101
Agricultural			—				—				—				25				—				—				—				—				25
Commercial and industrial-owner occupied			260				—				—				601				—				385				60				—				1,306
Construction, acquisition and development			3,689				84				130				12,693				—				2,134				—				—				18,730
Commercial real estate			170				108				—				278				127				—				63				—				746
All other			—				—				—				98				—				—				—				—				98
Total loans		$	4,417			$	308			$	183			$	15,835			$	127			$	2,699			$	127			$	—			$	23,696

 

		Quarter Ended
		Sep-15				Jun-15				Mar-15				Dec-14				Sep-14
OTHER REAL ESTATE OWNED:
Balance, beginning of period		$	24,299			$	27,889			$	33,984			$	42,691			$	55,253
Additions to foreclosed properties
New foreclosed property			1,333				1,730				2,804				2,257				3,476
Reductions in foreclosed properties
Sales			(1,412	)			(4,284	)			(6,726	)			(8,548	)			(14,429	)
Writedowns			(524	)			(1,036	)			(2,173	)			(2,416	)			(1,609	)
Balance, end of period		$	23,696			$	24,299			$	27,889			$	33,984			$	42,691
FORECLOSED PROPERTY EXPENSE
(Gain) Loss on sale of other real estate owned		$	(203	)		$	204			$	(779	)		$	1,643			$	3,289
Writedown of other real estate owned			524				1,036				2,173				2,416				1,609
Other foreclosed property expense			487				385				577				534				823
Total foreclosed property expense		$	808			$	1,625			$	1,971			$	4,593			$	5,721

 

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BXS Announces Third Quarter Results

Page 18

October 19, 2015

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Sep-15				Jun-15				Mar-15				Dec-14				Sep-14
NONINTEREST REVENUE:
Mortgage lending		$	2,339			$	14,102			$	8,567			$	3,250			$	6,938
Credit card, debit card and merchant fees			9,282				9,298				8,539				9,921				8,972
Deposit service charges			12,150				11,527				11,252				12,538				13,111
Securities gains, net			33				41				14				18				18
Insurance commissions			28,584				29,319				33,493				25,376				29,246
Trust income			3,653				3,543				4,036				3,791				3,537
Annuity fees			539				470				558				540				461
Brokerage commissions and fees			1,375				1,495				1,616				1,495				1,963
Bank-owned life insurance			1,842				1,835				1,899				3,249				1,865
Other miscellaneous income			3,156				2,684				3,341				3,335				3,167
Total noninterest revenue		$	62,953			$	74,314			$	73,315			$	63,513			$	69,278
NONINTEREST EXPENSE:
Salaries and employee benefits		$	81,354			$	79,759			$	81,179			$	76,751			$	77,453
Occupancy, net of rental income			10,819				10,419				10,194				10,500				10,313
Equipment			3,742				4,024				3,974				3,996				4,205
Deposit insurance assessments			2,191				2,377				2,311				2,430				2,125
Amortization of bond issue cost			12				12				12				12				12
Advertising			812				1,686				781				1,233				1,192
Foreclosed property expense			808				1,625				1,971				4,593				5,721
Telecommunications			1,825				1,897				1,922				1,960				2,254
Public relations			481				653				570				770				950
Data processing			5,598				5,324				5,393				4,804				5,317
Computer software			2,595				2,690				2,606				2,763				2,488
Amortization of intangibles			948				1,061				1,032				1,111				1,126
Legal			1,233				1,998				7,681				2,322				2,620
Merger expense			8				4				—				4				188
Postage and shipping			1,030				1,194				1,172				1,239				1,103
Other miscellaneous expense			12,994				13,454				16,135				15,558				16,632
Total noninterest expense		$	126,450			$	128,177			$	136,933			$	130,046			$	133,699
INSURANCE COMMISSIONS:
Property and casualty commissions		$	21,155			$	21,145			$	20,673			$	19,007			$	22,746
Life and health commissions			5,775				6,202				5,412				5,521				5,128
Risk management income			709				637				666				621				708
Other			945				1,335				6,742				227				664
Total insurance commissions		$	28,584			$	29,319			$	33,493			$	25,376			$	29,246

 

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BXS Announces Third Quarter Results

Page 19

October 19, 2015

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Sep-15				Jun-15				Mar-15				Dec-14				Sep-14
MORTGAGE SERVICING RIGHTS:
Fair value, beginning of period		$	55,924			$	49,190			$	51,296			$	53,759			$	52,272
Additions to mortgage servicing rights:
Originations of servicing assets			4,231				4,344				2,499				2,453				2,400
Changes in fair value:
Due to payoffs/paydowns			(1,872	)			(1,930	)			(1,564	)			(1,480	)			(1,559	)
Due to change in valuation inputs or assumptions used in the valuation model			(5,308	)			4,321				(3,039	)			(3,434	)			648
Other changes in fair value			(2	)			(1	)			(2	)			(2	)			(2	)
Fair value, end of period		$	52,973			$	55,924			$	49,190			$	51,296			$	53,759
Production revenue:
Origination		$	5,154			$	7,395			$	8,914			$	3,949			$	3,736
Servicing			4,365				4,316				4,256				4,215				4,113
Payoffs/Paydowns			(1,872	)			(1,930	)			(1,564	)			(1,480	)			(1,559	)
Total production revenue			7,647				9,781				11,606				6,684				6,290
Market value adjustment			(5,308	)			4,321				(3,039	)			(3,434	)			648
Total mortgage lending revenue		$	2,339			$	14,102			$	8,567			$	3,250			$	6,938
Mortgage loans serviced		$	5,942,736			$	5,802,407			$	5,705,638			$	5,686,756			$	5,649,897
MSR/mtg loans serviced			0.89	%			0.96	%			0.86	%			0.90	%			0.95	%
AVAILABLE-FOR-SALE SECURITIES, at fair value
U.S. Government agencies		$	1,255,717			$	1,336,846			$	1,286,981			$	1,215,054			$	1,238,088
Government agency issued residential mortgage-back securities			206,878				217,191				200,381				209,230				218,748
Government agency issued commercial mortgage-back securities			229,922				224,450				227,409				240,568				237,325
Obligations of states and political subdivisions			451,600				458,322				471,539				483,864				509,304
Other			17,008				14,344				8,063				8,211				7,997
Total available-for-sale securities		$	2,161,125			$	2,251,153			$	2,194,373			$	2,156,927			$	2,211,462

 

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BXS Announces Third Quarter Results

Page 20

October 19, 2015

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

Management evaluates the Company’s capital position and operating performance by utilizing certain financial measures not calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including pre-tax, pre-provision earnings, net operating income, tangible shareholders’ equity to tangible assets, return on tangible equity, pre-tax pre-provision return on average assets, tangible book value per share, and operating earnings per share. The Company has included these non-GAAP financial measures in this news release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures (i) provides important supplemental information that contributes to a proper understanding of the Company’s operating performance, (ii) enables a more complete understanding of factors and trends affecting the Company’s business and (iii) allows investors to evaluate the Company’s performance in a manner similar to Management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies’ non-GAAP financial measures having the same or similar names.

Reconciliation of Pre-tax, Pre-provision Earnings and Net Operating Income to Net Income:

 

		Quarter ended
		9/30/2015				6/30/2015				3/31/2015				12/31/2014				9/30/2014
Net income		$	34,343			$	39,713			$	32,266			$	28,660			$	28,778
Plus: Provision for credit losses			(3,000	)			(5,000	)			(5,000	)			—				—
Income tax expense			16,230				18,733				15,189				11,252				12,414
Pre-tax, pre-provision earnings		$	47,573			$	53,446			$	42,455			$	39,912			$	41,192
Net income		$	34,343			$	39,713			$	32,266			$	28,660			$	28,778
Plus: Merger expense, net of tax			5				3				(1	)			2				117
One time charge for BSA, net of tax			—				—				—				—				1,903
Net operating income		$	34,348			$	39,716			$	32,265			$	28,662			$	30,798

 

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BXS Announces Third Quarter Results

Page 21

October 19, 2015

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

Reconciliation of Tangible Assets and Tangible Shareholders’ Equity to

Total Assets and Total Shareholders’ Equity:

 

		Quarter ended
		9/30/2015				6/30/2015				3/31/2015				12/31/2014				9/30/2014
Tangible assets
Total assets		$	13,787,424			$	13,634,931			$	13,630,322			$	13,326,369			$	13,071,557
Less: Goodwill			291,498				291,498				291,498				291,498				291,498
Other identifiable intangible assets			21,466				22,415				23,476				24,508				25,619
Total tangible assets		$	13,474,460			$	13,321,018			$	13,315,348			$	13,010,363			$	12,754,440
Tangible shareholders’ equity
Total shareholders’ equity		$	1,644,820			$	1,680,196			$	1,645,208			$	1,606,059			$	1,610,543
Less: Goodwill			291,498				291,498				291,498				291,498				291,498
Other identifiable intangible assets			21,466				22,415				23,476				24,508				25,619
Total tangible shareholders’ equity		$	1,331,856			$	1,366,283			$	1,330,234			$	1,290,053			$	1,293,426
Total average assets		$	13,632,581			$	13,516,546			$	13,457,668			$	13,131,130			$	12,987,103
Total common shares outstanding			93,969,994				96,755,530				96,544,502				96,254,903				96,065,021
Average shares outstanding-diluted			96,467,728				96,957,441				96,653,401				96,506,827				96,373,950
Tangible shareholders’ equity to tangible assets*			9.88	%			10.26	%			9.99	%			9.92	%			10.14	%
Return on tangible equity **			10.23	%			11.66	%			9.84	%			8.81	%			8.83	%
Pre-tax pre-provision return on average assets ***			1.38	%			1.59	%			1.29	%			1.21	%			1.26	%
Tangible book value per share****		$	14.17			$	14.12			$	13.78			$	13.40			$	13.46
Operating earnings per share*****		$	0.36			$	0.41			$	0.33			$	0.30			$	0.32

 

*	Tangible shareholders’ equity to tangible assets is defined by the Company as total shareholders’ equity less goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill and other identifiable intangible assets.

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

***	Pre-tax pre-provision return on average assets is defined by the Company as annualized pre-tax pre-provision earnings divided by total average assets.

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

*****

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

 

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