BancorpSouth Reports Record Quarterly Earnings

TUPELO, Miss., July 18, 2018 /PRNewswire/ -- BancorpSouth Bank (NYSE: BXS) (the "Company") today announced financial results for the quarter ended June 30, 2018.

Highlights for the second quarter of 2018 included:

  • Record quarterly net income of $54.0 million, or $0.55 per diluted share, which represents an increase of 34 percent on a per share basis compared to the second quarter of 2017.
  • Completed operational integration of Central Community Corporation merger and recorded corresponding merger-related expenses of $1.9 million for the second quarter.
  • Net operating income – excluding MSR – of $55.6 million, or $0.56 per diluted share.
  • Generated net loan growth of $121.3 million, or 4.0 percent on an annualized basis.
  • Net interest margin increased to 3.71 percent from 3.67 percent for the first quarter of 2018.
  • Announced the signing of a definitive merger agreement with Icon Capital Corporation, parent company of Icon Bank of Texas, National Association, headquartered in Houston, Texas.
  • Repurchased 785,877 shares of outstanding common stock at a weighted average price of $31.39 per share.

The Company reported net income of $54.0 million, or $0.55 per diluted share, for the second quarter of 2018 compared with net income of $37.9 million, or $0.41 per diluted share, for the second quarter of 2017 and net income of $53.5 million, or $0.54 per diluted share, for the first quarter of 2018.  The Company reported net operating income – excluding MSR – of $55.6 million, or $0.56 per diluted share, for the second quarter of 2018 compared to $38.8 million, or $0.42 per diluted share, for the second quarter of 2017 and $53.6 million, or $0.54 per diluted share, for the first quarter of 2018. 

Net operating income – excluding MSR – is a non-GAAP financial measure used by management to assess the core operating performance of the Company.  This measure excludes items such as recognized securities gains and losses, mortgage servicing rights ("MSR") valuation adjustments, restructuring charges, merger-related expenses, industry-related legal settlements, and other one-time charges. 

"We are pleased to report another quarter of record financial performance," remarked Dan Rollins, Chairman and Chief Executive Officer.  "The increase in our earnings for the quarter was driven by balance sheet growth and improvement in our net interest margin combined with continued strong credit quality and a stable expense base.   Our business development efforts yielded net loan growth of $121 million for the quarter, or 4 percent on an annualized basis.  We are pleased with these results, particularly given competitive pressures and anticipated runoff associated with our acquired loans.  As expected, we experienced a seasonal decline on the deposit side of the balance sheet.  Finally, our net interest margin improved to 3.71 percent as we continue to benefit from recent rate hikes."

"Additionally, we continue our efforts to deploy capital in a manner that seeks to maximize shareholder value.  We repurchased just over 785,000 shares of our stock at a weighted average price of $31.39 per share during the quarter.  We also announced the signing of a definitive merger agreement with Icon Capital Corporation, which has approximately $800 million in assets in the Houston, Texas market.  We are excited about the value the Icon team will add to our franchise as we continue to grow."

Net Interest Revenue

Net interest revenue was $142.1 million for the second quarter of 2018, an increase of 21.0 percent from $117.5 million for the second quarter of 2017 and an increase of 2.9 percent from $138.1 million for the first quarter of 2018.  The fully taxable equivalent net interest margin was 3.71 percent for the second quarter of 2018 compared to 3.52 percent for the second quarter of 2017 and 3.67 percent for the first quarter of 2018.  Yields on net loans and leases were 4.67 percent for the second quarter of 2018 compared with 4.27 percent for the second quarter of 2017 and 4.60 percent for the first quarter of 2018, while yields on total interest earning assets were 4.15 percent for the second quarter of 2018 compared with 3.80 percent for the second quarter of 2017 and 4.05 percent for the first quarter of 2018.  The net interest margin, excluding accretable yield, was 3.63 percent for the second quarter of 2018 compared with 3.60 percent for the first quarter of 2018 while yields on net loans and leases, excluding accretable yield, were 4.57 percent for the second quarter of 2018 compared with 4.51 percent for the first quarter of 2018.  Purchase accounting accretion did not impact the net interest margin or net loan and lease yields for the second quarter of 2017.  The average cost of deposits was 0.34 percent for the second quarter of 2018 compared to 0.25 percent for the second quarter of 2017 and 0.31 percent for the first quarter of 2018.

Asset, Deposit and Loan Activity

Total assets were $17.2 billion at June 30, 2018 compared with $14.8 billion at June 30, 2017.  Loans and leases, net of unearned income, were $12.4 billion at June 30, 2018 compared with $11.0 billion at June 30, 2017.  Total deposits were $13.5 billion at June 30, 2018 compared with $11.9 billion at June 30, 2017.  These balance sheet comparisons include the impact of the acquisitions of Central Community Corporation and Ouachita Bancshares Corp., each of which closed effective January 15, 2018.  Balance sheet totals for these two banks at the time of closing are disclosed in the "Transactions" section of this news release.

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the second quarter of 2018 reflect a provision for credit losses of $2.5 million, compared to a provision of $1.0 million for both the second quarter of 2017 and first quarter of 2018.  Net charge-offs for the second quarter of 2018 were $2.0 million, compared with net charge-offs of $4.6 million for the second quarter of 2017 and net recoveries of $0.2 million for the first quarter of 2018.  The allowance for credit losses was $119.9 million, or 0.97 percent of net loans and leases, at June 30, 2018, compared with $121.6 million, or 1.10 percent of net loans and leases, at June 30, 2017 and $119.4 million, or 0.97 percent of net loans and leases, at March 31, 2018.  The allowance for credit losses coverage metrics were impacted by loans acquired in the acquisitions that closed during the first quarter of 2018.

Total non-performing assets were $81.2 million, or 0.65 percent of net loans and leases, at June 30, 2018 compared with $79.4 million, or 0.72 percent of net loans and leases, at June 30, 2017, and $90.9 million, or 0.74 percent of net loans and leases, at March 31, 2018.  Other real estate owned was $7.8 million at June 30, 2018 compared with $7.7 million at June 30, 2017 and $9.4 million at March 31, 2018.

Noninterest Revenue

Noninterest revenue was $72.5 million for the second quarter of 2018, compared with $68.1 million for the second quarter of 2017 and $78.9 million for the first quarter of 2018.  These results included a negative MSR valuation adjustment of $0.2 million for the second quarter of 2018, compared with a negative MSR valuation adjustment of $1.5 million for the second quarter of 2017 and a positive MSR valuation adjustment of $5.5 million for the first quarter of 2018.  Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.   

 

Excluding the MSR valuation adjustments, mortgage banking revenue was $7.1 million for the second quarter of 2018, compared with $7.6 million for the second quarter of 2017 and $7.7 million for the first quarter of 2018.  Mortgage origination volume for the second quarter of 2018 was $523.7 million, compared with $385.9 million for the second quarter of 2017 and $291.9 million for the first quarter of 2018.  Of total mortgage origination volume for the second quarter of 2018, $209.3 million was portfolio loans, compared with $93.5 million for the second quarter of 2017 and $61.0 million for the first quarter of 2018.

Credit and debit card fee revenue was $10.5 million for the second quarter of 2018, compared with $9.6 million for both the second quarter of 2017 and the first quarter of 2018.  Deposit service charge revenue was $10.8 million for the second quarter of 2018, compared with $9.7 million for the second quarter of 2017 and $10.9 million for the first quarter of 2018.  Wealth management revenue was $5.7 million for the second quarter of 2018, compared with $5.3 million for the second quarter of 2017 and $5.7 million for the first quarter of 2018.  Other noninterest revenue was $5.5 million for the second quarter of 2018, compared with $6.3 million for the second quarter of 2017 and $10.4 million for the first quarter of 2018.   Other noninterest revenue for the first quarter of 2018 benefitted from a legal settlement totaling $3.0 million.

Insurance commission revenue was $33.0 million for the second quarter of 2018, compared with $31.1 million for the second quarter of 2017 and $29.1 million for the first quarter of 2018.  New accounting guidance, which became effective January 1, 2018, impacted the Company's accounting for insurance commission revenue.  Previously, contingent commissions were recognized as revenue in the period of receipt; however, under the guidance, the Company is required to estimate and accrue for contingent commissions throughout the year.

 

Noninterest Expense

Noninterest expense for the second quarter of 2018 was $145.2 million, compared with $127.6 million for the second quarter of 2017 and $147.7 million for the first quarter of 2018.  Salaries and employee benefits expense was $91.5 million for the second quarter of 2018 compared to $80.7 million for the second quarter of 2017 and $91.2 million for the first quarter of 2018.  Occupancy expense was $11.1 million for the second quarter of 2018, compared with $10.5 million for the second quarter of 2017 and $10.8 million for the first quarter of 2018.  Other noninterest expense was $35.7 million for the second quarter of 2018, compared to $30.7 million for the second quarter of 2017 and $39.6 million for the first quarter of 2018.  Other noninterest expense for the first quarter of 2018 was adversely impacted by a single forgery and theft loss totaling $2.3 million and the second quarter benefitted from a $1.3 million fraud loss recovery.  Additionally, merger-related expense for the second quarter of 2018 was $1.9 million, compared with no merger-related expense for the second quarter of 2017 and $5.7 million for the first quarter of 2018.  Income tax expense was reduced by the tax benefit of the vesting of restricted stock during the second quarter.

 

Capital Management

The Company's equity capitalization is comprised entirely of common stock.  The Company's ratio of shareholders' equity to assets was 12.03 percent at June 30, 2018, compared with 11.40 percent at June 30, 2017 and 11.99 percent at March 31, 2018.  The ratio of tangible shareholders' equity to tangible assets was 8.71 percent at June 30, 2018, compared with 9.44 percent at June 30, 2017 and 8.69 percent at March 31, 2018.

During the second quarter of 2018, the Company repurchased 785,877 shares of its outstanding common stock at a weighted average price of $31.39 per share pursuant to its share repurchase program which is intended to comply with Rules 10b-18 and 10b5-1 promulgated under the Securities and Exchange Act of 1934, as amended.  During the first quarter of 2018, the Company repurchased 2,073,986 shares of its outstanding common stock at a weighted average price of $32.32 per share.  As of June 30, 2018, the Company had 3,140,137 remaining shares available for repurchase under its current share repurchase authorization, which expires on December 31, 2019.  

Estimated regulatory capital ratios at June 30, 2018 were calculated in accordance with the Basel III capital framework.  The Company is a "well capitalized" bank, as defined by federal regulations, at June 30, 2018, with Tier 1 risk-based capital of 11.42 percent and total risk-based capital of 12.30 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification. 

Summary

Rollins concluded, "As we look toward the second half of 2018, I'm excited about the opportunity to continue improving our performance.  While we do expect to see continued competitive pressure on deposit pricing, we anticipate our net interest margin will continue to improve as our loan and securities portfolios reprice.  Additionally, we expect to continue to realize additional cost savings related to our two acquisitions that closed in January.  In particular, the conversion for First State Bank Central Texas occurred late in the second quarter.  Accordingly, we anticipate that most of the cost savings associated with this transaction will be realized in future quarters."

TRANSACTIONS

Icon Capital Corporation

On April 18, 2018, the Company announced the signing of a definitive merger agreement (the "Icon Merger Agreement") with Icon Capital Corporation and its wholly owned subsidiary, Icon Bank of Texas, National Association (collectively referred to as "Icon"), pursuant to which Icon agreed to be merged with and into the Company (the "Icon Merger").  Icon is headquartered in Houston, Texas and operates 7 full-service banking offices in the Houston, Texas metropolitan area.  As of June 30, 2018, Icon, on a consolidated basis, reported total assets of $740.7 million, total loans of $627.6 million and total deposits of $643.2 million.  Under the terms of the definitive agreement, the Company expects to issue approximately 4,125,000 shares of the Company's common stock plus $17.5 million in cash for all outstanding shares of Icon Capital Corporation's capital stock, subject to certain conditions and potential adjustments.  For more information regarding the Icon Merger, see our Current Report on Form 8-K that was filed with the Federal Deposit Insurance Corporation ("FDIC") on April 18, 2018.  The Agreement has been unanimously approved by the Boards of Directors of both the Company and Icon. Icon has agreed to convene a meeting of its shareholders to vote upon the approval of the Merger Agreement. Subject to the satisfaction of all closing conditions, including the receipt of all required regulatory approvals, the Merger is expected to be completed during the second half of 2018 although the Company can provide no assurance that the Icon Merger will close during this time period or at all.

Central Community Corporation

Effective January 15, 2018, the Company completed the merger with Central Community Corporation ("CCC"), headquartered in Temple, Texas, pursuant to which CCC merged with and into the Company.  CCC was the parent company of First State Bank Central Texas ("First State Bank"), which was headquartered in Austin, Texas.  First State Bank operated 31 full-service banking offices in central Texas.  As of January 15, 2018, CCC, on a consolidated basis, reported total assets of $1.4 billion, total loans of $712.2 million and total deposits of $1.2 billion.  Under the terms of the definitive merger agreement, the Company issued approximately 7,250,000 shares of the Company's common stock plus $28.5 million in cash for all outstanding shares of CCC's capital stock.  For more information regarding the CCC merger, see our Current Report on Form 8-K that was filed with the FDIC on January 16, 2018.  The purchase accounting for this transaction is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies.

Ouachita Bancshares Corp.

Effective January 15, 2018, the Company completed the merger with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as "OIB"), headquartered in Monroe, Louisiana, pursuant to which OIB was merged with and into the Company.  OIB operated 11 full-service banking offices along the I-20 corridor and had a loan production office in Madison, Mississippi.  As of January 15, 2018, OIB, on a consolidated basis, reported total assets of $707.1 million, total loans of $495.6 million and total deposits of $653.4 million.  Under the terms of the definitive merger agreement, the Company issued 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.  For more information regarding the OIB merger, see our Current Report on Form 8-K that was filed with the FDIC on January 16, 2018.  The purchase accounting for this transaction is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies.

The Reorganization

Effective October 31, 2017, the merger of BancorpSouth, Inc. with and into BancorpSouth Bank was closed, with BancorpSouth Bank continuing as the surviving entity (the "Reorganization").  The Reorganization resulted in the elimination of the holding company structure.  The Reorganization is expected to improve efficiency through the elimination of redundant corporate infrastructure and duplicative regulatory oversight.  For more information regarding the Reorganization, see our Current Report on Form 8-K that was filed with the FDIC on November 1, 2017.

Non-GAAP Measures and Ratios

This news release presents certain financial measures and ratios that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP").  A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears under the caption "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions"  beginning on page 21 of this news release.

Conference Call and Webcast

The Company will conduct a conference call to discuss its second quarter 2018 financial results on July 19, 2018, at 10:00 a.m. (Central Time).  This conference call will be an interactive session between management and analysts. Shareholders and other interested parties may listen to this live conference call via Internet webcast by accessing www.BancorpSouth.investorroom.com/Webcasts. The webcast will also be available in archived format at the same address.

About BancorpSouth Bank

BancorpSouth Bank (NYSE: BXS) is headquartered in Tupelo, Mississippi, with approximately $17 billion in assets.  BancorpSouth operates approximately 280 full service branch locations as well as additional mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.  BancorpSouth is committed to a culture of respect, diversity, and inclusion in both its workplace and communities. To learn more, visit our Community Commitment page at www.bancorpsouth.com.  Like us on Facebook; follow us on Twitter: @MyBXS; or connect with us through LinkedIn.

Forward-Looking Statements

Certain statements contained in this news release may not be based upon historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "could," "estimate," "expect," "foresee," "hope," "intend," "may," "might," "plan," "will," or "would" or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the benefits, costs, synergies and financial and operational impact of the Reorganization on the Company, the benefits, costs, synergies, and financial and operational impact of the CCC and OIB mergers, the acceptance by customers of OIB and CCC of the Company's products and services after the closing of the mergers, the terms, timing and closing of the proposed Icon Merger, acceptance by customers of Icon of the Company's products and services, the opportunities to enhance market share in certain markets and market acceptance of  the Company generally in new markets, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its Bank Secrecy Act ("BSA") and anti-money laundering ("AML") compliance program and its fair lending compliance program, the Company's compliance with the consent order it entered into with the Consumer Financial Protection Bureau and the United States Department of Justice related to the Company's fair lending practices (the "Consent Order"), the impact of the Tax Cuts and Jobs Act of 2017 on the Company and its operations and financial performance, amortization expense for intangible assets, goodwill impairments, loan impairment, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue, fair value determinations, the amount of the Company's non-performing loans and leases, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company's reserve for losses from representation and warranty obligations, the Company's foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, the impact of interest rates on loan yields, calculation of economic value of equity, impaired loan charge-offs, diversification of the Company's revenue stream, the growth of the Company's insurance business and commission revenue, the growth of the Company's customer base and loan, deposit and fee revenue sources, liquidity needs and strategies, sources of funding, net interest margin, declaration and payment of dividends, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, improvement in the Company's efficiencies, operating expense trends, future acquisitions, dispositions and other strategic growth opportunities and initiatives and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters. 

The Company cautions readers not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors. These factors may include, but are not limited to, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program and its fair lending compliance program, the Company's ability to successfully implement and comply with the Consent Order, the ability of the Company to meet expectations regarding the benefits, costs, synergies, and financial and operational impact of the Reorganization and the CCC and OIB mergers, the possibility that any of the anticipated benefits, costs, synergies and financial and operational improvements of the Reorganization and the OIB and CCC mergers will not be realized or will not be realized as expected, the ability of the Company and Icon to complete the Icon Merger, the ability of the Company and Icon to satisfy the conditions to the completion of the Icon Merger, including the approval of the merger transaction by Icon's shareholders and the receipt of all regulatory approvals required for the Icon Merger on the terms expected in the Icon Merger Agreement, the ability of the Company and Icon to meet expectations regarding the timing, completion and accounting and tax treatments of the Icon Merger, the possibility that any of the anticipated benefits of the Icon Merger will not be realized or will not be realized as expected, the failure of the Icon Merger to close for any other reason, the effect of  the announcement of the Icon Merger on the Company's operating results, the possibility that the Icon Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events, the lack of availability of the Bank's filings mandated by the Exchange Act from the SEC's publicly available website after the closing of the Reorganization, the impact of any ongoing, pending or threatened litigation, administrative and investigatory matters involving the Company, conditions in the financial markets and economic conditions generally, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, limitations on the Company's ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Act, and supervision of the Company's operations, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic and environmental conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of the Tax Cuts and Jobs Act of 2017 on the Company and its operations and financial performance, the impact of the loss of any key Company personnel, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the growth of the Company's insurance business and commission revenue, the growth of the Company's loan, deposit and fee revenue sources, the Company's ability to adapt its products and services to evolving industry standards and consumer preferences, competition with other financial services companies, risks in connection with completed or potential acquisitions, dispositions and other strategic growth opportunities and initiatives, the Company's growth strategy, interruptions or breaches in the Company's information system security, the failure of certain third-party vendors to perform, unfavorable ratings by rating agencies, dilution caused by the Company's issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, other factors generally understood to affect the assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies and other factors detailed from time to time in the Company's press and news releases, reports and other filings with the FDIC.  Forward-looking statements speak only as of the date that they were made, and, except as required by law, the Company does not undertake any obligation to update or revise forward-looking statements to reflect events or circumstances that occur after the date of this news release.

 

   

           

BancorpSouth Bank

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

           
           
 

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

 

6/30/2018

3/31/2018

12/31/2017

9/30/2017

6/30/2017

Earnings Summary:

         

Interest revenue

$         159,290

$         152,195

$         132,276

$         130,934

$         126,855

Interest expense

17,162

14,117

10,890

10,373

9,377

Net interest revenue

142,128

138,078

121,386

120,561

117,478

Provision for credit losses

2,500

1,000

500

500

1,000

Net interest revenue, after provision

         

   for credit losses

139,628

137,078

120,886

120,061

116,478

Noninterest revenue

72,456

78,934

63,074

65,960

68,130

Noninterest expense

145,182

147,701

125,881

126,903

127,553

Income before income taxes

66,902

68,311

58,079

59,118

57,055

Income tax expense

12,856

14,820

20,556

19,590

19,166

Net income

$           54,046

$           53,491

$           37,523

$           39,528

$           37,889

           

Balance Sheet - Period End Balances

         

Total assets

$    17,222,491

$    17,185,772

$    15,298,518

$    14,760,394

$    14,843,130

Total earning assets

15,600,037

15,593,366

14,081,818

13,606,145

13,674,436

Total securities

2,828,754

2,989,767

2,798,542

2,326,900

2,388,392

Loans and leases, net of unearned income

12,418,114

12,296,849

11,056,434

11,055,509

11,018,540

Allowance for credit losses

119,920

119,434

118,200

119,496

121,561

Net book value of acquired loans (included in loans and leases above)

926,996

1,076,208

-

-

-

Remaining loan mark on acquired loans

14,485

19,330

-

-

-

Total deposits

13,476,558

13,894,301

11,915,596

11,775,988

11,938,296

Long-term debt

33,214

32,963

30,000

30,000

230,000

Total shareholders' equity

2,072,083

2,060,487

1,713,485

1,700,502

1,691,832

           

Balance Sheet - Average Balances

         

Total assets

$    17,094,283

$    16,918,568

$    14,809,497

$    14,710,245

$    14,741,811

Total earning assets

15,496,007

15,374,336

13,678,542

13,591,124

13,636,415

Total securities

2,906,235

2,966,917

2,414,140

2,334,717

2,464,341

Loans and leases, net of unearned income

12,334,756

12,084,020

11,010,187

11,013,270

10,883,102

Total deposits

13,539,324

13,563,510

11,840,049

11,802,682

11,902,415

Long-term debt

33,147

34,433

30,000

162,609

398,132

Total shareholders' equity

2,051,452

2,012,639

1,701,228

1,695,899

1,680,053

           

Nonperforming Assets:

         

Non-accrual loans and leases

$           60,045

$           65,303

$           61,891

$           55,796

$           63,585

Loans and leases 90+ days past due, still accruing

6,335

6,519

8,503

1,855

1,793

Restructured loans and leases, still accruing

6,982

9,681

8,060

7,366

6,303

Non-performing loans (NPLs)

73,362

81,503

78,454

65,017

71,681

Other real estate owned

7,828

9,362

6,038

5,956

7,704

Non-performing assets (NPAs)

$           81,190

$           90,865

$           84,492

$           70,973

$           79,385

           

Financial Ratios and Other Data:

         

Return on average assets

1.27%

1.28%

1.01%

1.07%

1.03%

Operating return on average assets-excluding MSR*

1.31%

1.29%

0.99%

1.07%

1.06%

Return on average shareholders' equity

10.57%

10.78%

8.75%

9.25%

9.05%

Operating return on average shareholders' equity-excluding MSR*

10.88%

10.80%

8.58%

9.25%

9.27%

Return on tangible equity*

15.00%

15.08%

10.67%

11.36%

11.08%

Operating return on tangible equity-excluding MSR*

15.44%

15.11%

10.46%

11.36%

11.35%

Noninterest income to average assets

1.70%

1.89%

1.69%

1.78%

1.85%

Noninterest expense to average assets

3.41%

3.54%

3.37%

3.42%

3.47%

Net interest margin-fully taxable equivalent

3.71%

3.67%

3.58%

3.58%

3.52%

Net interest margin-fully taxable equivalent, excluding net accretion

         

  on acquired loans and leases

3.63%

3.60%

N/A

N/A

N/A

Net interest rate spread

3.52%

3.52%

3.44%

3.45%

3.40%

Efficiency ratio (tax equivalent)*

67.31%

67.66%

67.45%

67.23%

67.90%

Operating efficiency ratio-excluding MSR (tax equivalent)*

66.36%

66.79%

68.16%

67.24%

67.33%

Loan/deposit ratio

92.15%

88.50%

92.79%

93.88%

92.30%

Price to earnings multiple (avg)

17.07

17.77

18.95

19.42

18.83

Market value to book value

156.95%

153.77%

165.76%

170.25%

164.07%

Market value to book value (avg)

159.33%

159.14%

169.35%

158.92%

161.24%

Market value to tangible book value

225.06%

220.18%

203.64%

209.66%

202.52%

Market value to tangible book value (avg)

228.47%

227.87%

208.04%

195.70%

199.07%

Employee FTE

4,366

4,305

3,947

3,950

3,989

           

*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 21 and 22.

           
           
 

BancorpSouth Bank

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

 
 
 

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

 

6/30/2018

3/31/2018

12/31/2017

9/30/2017

6/30/2017

           

Credit Quality Ratios:

         

Net charge-offs(recoveries) to average loans and leases (annualized)

0.07%

(0.01%)

0.06%

0.09%

0.17%

Provision for credit losses to average loans and leases (annualized)

0.08%

0.03%

0.02%

0.02%

0.04%

Allowance for credit losses to net loans and leases

0.97%

0.97%

1.07%

1.08%

1.10%

Allowance for credit losses to net loans and leases, excluding acquired loans and leases

1.05%

1.07%

N/A

N/A

N/A

Allowance for credit losses to non-performing loans and leases

163.46%

146.54%

150.66%

183.79%

169.59%

Allowance for credit losses to non-performing assets

147.70%

131.44%

139.89%

168.37%

153.13%

Non-performing loans and leases to net loans and leases

0.59%

0.66%

0.71%

0.59%

0.65%

Non-performing assets to net loans and leases

0.65%

0.74%

0.76%

0.64%

0.72%

           

Equity Ratios:

         

Total shareholders' equity to total assets

12.03%

11.99%

11.20%

11.52%

11.40%

Tangible shareholders' equity to tangible assets*

8.71%

8.69%

9.31%

9.56%

9.44%

           
           

Capital Adequacy:

         

Common  Equity Tier 1 capital

11.42%

11.30%

12.15%

12.04%

11.90%

Tier 1 capital

11.42%

11.30%

12.15%

12.04%

11.90%

Total capital

12.30%

12.18%

13.13%

13.03%

12.91%

Tier 1 leverage capital

9.38%

9.39%

10.12%

10.02%

9.93%

   Estimated for current quarter

         
           

Common Share Data:

         

Basic earnings per share

$               0.55

$               0.54

$               0.42

$               0.43

$               0.41

Diluted earnings per share

0.55

0.54

0.41

0.43

0.41

Operating earnings per share*

0.56

0.58

0.42

0.43

0.41

Operating earnings per share- excluding MSR*

0.56

0.54

0.41

0.43

0.42

Cash dividends per share

0.14

0.14

0.14

0.14

0.13

Book value per share

20.99

20.68

18.97

18.83

18.59

Tangible book value per share*

14.64

14.44

15.44

15.29

15.06

Market value per share (last)

32.95

31.80

31.45

32.05

30.50

Market value per share (high)

35.45

35.55

34.45

32.70

31.85

Market value per share (low)

30.60

30.90

30.25

27.20

28.20

Market value per share (avg)

33.45

32.91

32.13

29.92

29.98

Dividend payout ratio

25.62%

25.85%

33.70%

32.20%

30.48%

Total shares outstanding

98,700,509

99,636,779

90,312,378

90,329,896

91,022,729

Average shares outstanding - basic

98,906,619

98,765,789

90,321,137

90,911,702

91,366,309

Average shares outstanding - diluted

99,057,054

98,942,268

90,546,824

91,099,770

91,530,552

           
           

Yield/Rate:

         

(Taxable equivalent basis)

         

Loans, loans held for sale, and leases net of unearned income

4.67%

4.60%

4.36%

4.33%

4.27%

Loans, loans held for sale, and leases net of unearned income, excluding

         

  net accretion on acquired loans and leases

4.57%

4.51%

N/A

N/A

N/A

Available-for-sale securities:

         

  Taxable

1.77%

1.72%

1.48%

1.41%

1.37%

  Tax-exempt

4.39%

4.30%

5.29%

5.25%

5.26%

Short-term, FHLB and other equity investments

2.02%

1.54%

1.27%

1.22%

1.01%

  Total interest earning assets and revenue

4.15%

4.05%

3.90%

3.89%

3.80%

Deposits

0.34%

0.31%

0.27%

0.26%

0.25%

  Demand - interest bearing

0.43%

0.36%

0.29%

0.28%

0.25%

  Savings

0.15%

0.13%

0.13%

0.12%

0.12%

  Other time

0.95%

0.89%

0.86%

0.84%

0.81%

Short-term borrowings

1.62%

1.25%

0.96%

0.85%

0.69%

Total interest bearing deposits and short-term borrowings

0.62%

0.51%

0.45%

0.41%

0.37%

Long-term debt

4.11%

4.17%

4.05%

1.79%

1.01%

  Total interest bearing liabilities and expense

0.63%

0.53%

0.46%

0.44%

0.40%

Interest bearing liabilities to interest earning assets

70.27%

70.91%

69.09%

69.55%

69.68%

Net interest tax equivalent adjustment

$             1,119

$             1,205

$             2,155

$             2,237

$             2,248

           

*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 21 and 22.

  

                 
                 

BancorpSouth Bank

   

Consolidated Balance Sheets

   

(Unaudited)

   
                 
 

Jun-18

Mar-18

Dec-17

Sep-17

Jun-17

     
 

(Dollars in thousands)

     

Assets

               

Cash and due from banks

$                198,374

$                180,104

$                167,283

$                167,871

$                178,376

     

Interest bearing deposits with other banks

               

and Federal funds sold

152,566

127,345

53,440

52,316

49,680

     

Available-for-sale securities, at fair value

2,828,754

2,989,767

2,798,542

2,326,900

2,388,392

     

Loans and leases

12,433,152

12,312,346

11,072,062

11,073,306

11,037,808

     

  Less:  Unearned income

15,038

15,497

15,628

17,797

19,268

     

             Allowance for credit losses

119,920

119,434

118,200

119,496

121,561

     

Net loans and leases

12,298,194

12,177,415

10,938,234

10,936,013

10,896,979

     

Loans held for sale

153,396

141,979

136,577

138,353

184,921

     

Premises and equipment, net

339,372

342,353

314,362

311,530

306,863

     

Accrued interest receivable

51,921

52,856

45,671

44,454

40,716

     

Goodwill

588,004

580,900

300,798

300,798

300,798

     

Other identifiable intangibles

39,031

40,590

17,882

18,860

19,854

     

Bank owned life insurance

306,116

304,850

292,069

259,361

260,228

     

Other real estate owned

7,828

9,362

6,038

5,956

7,704

     

Other assets

258,935

238,251

227,622

197,982

208,619

     

Total Assets

$           17,222,491

$           17,185,772

$           15,298,518

$           14,760,394

$           14,843,130

     

Liabilities

               

Deposits:

               

  Demand:  Noninterest bearing

$             4,135,322

$             4,035,830

$             3,453,000

$             3,414,397

$             3,390,428

     

                  Interest bearing

5,509,901

5,945,359

5,066,614

4,925,127

5,095,570

     

  Savings

1,810,149

1,843,264

1,638,799

1,638,033

1,630,123

     

  Other time

2,021,186

2,069,848

1,757,183

1,798,431

1,822,175

     

Total deposits

13,476,558

13,894,301

11,915,596

11,775,988

11,938,296

     

Securities sold under agreement to repurchase

407,704

469,114

417,867

421,044

399,815

     

Federal funds purchased

               

   and other short-term borrowing

1,025,022

500,000

1,025,000

625,000

365,000

     

Accrued interest payable

5,961

5,525

4,882

4,826

4,259

     

Long-term debt

33,214

32,963

30,000

30,000

230,000

     

Other liabilities

201,949

223,382

191,688

203,034

213,928

     

Total Liabilities

15,150,408

15,125,285

13,585,033

13,059,892

13,151,298

     

Shareholders' Equity

               

Common stock

246,751

249,092

225,781

225,825

227,557

     

Capital surplus

441,950

465,699

177,624

175,837

191,940

     

Accumulated other comprehensive loss

(88,751)

(85,994)

(63,843)

(50,203)

(49,861)

     

Retained earnings

1,472,133

1,431,690

1,373,923

1,349,043

1,322,196

     

Total Shareholders' Equity

2,072,083

2,060,487

1,713,485

1,700,502

1,691,832

     

Total Liabilities & Shareholders' Equity

$           17,222,491

$           17,185,772

$           15,298,518

$           14,760,394

$           14,843,130

     
                 
                 
                 
                 

  

                 
                 

BancorpSouth Bank

   

Consolidated Average Balance Sheets

   

(Unaudited)

   
                 
 

Jun-18

Mar-18

Dec-17

Sep-17

Jun-17

     
 

(Dollars in thousands)

     

Assets

               

Cash and due from banks

$       203,220

$       202,141

$       154,843

$       153,797

$       156,387

     

Interest bearing deposits with other banks

               

and Federal funds sold

66,035

182,488

108,880

83,109

117,414

     

Available-for-sale securities, at fair value

2,906,235

2,966,917

2,414,140

2,334,717

2,464,341

     

Loans and leases

12,350,226

12,099,694

11,026,437

11,032,159

10,903,524

     

  Less:  Unearned income

15,470

15,674

16,250

18,889

20,422

     

             Allowance for credit losses

119,622

118,840

119,124

121,501

125,578

     

Net loans and leases

12,215,134

11,965,180

10,891,063

10,891,769

10,757,524

     

Loans held for sale

144,400

98,662

112,118

127,112

138,792

     

Premises and equipment, net

342,395

343,098

313,874

309,592

306,483

     

Accrued interest receivable

48,767

47,770

40,228

40,100

38,702

     

Goodwill

583,188

544,840

300,798

300,798

300,798

     

Other identifiable intangibles

39,752

17,811

18,231

19,222

20,218

     

Bank owned life insurance

305,016

301,982

265,761

261,100

259,182

     

Other real estate owned

8,997

9,300

5,777

6,985

7,860

     

Other assets

231,144

238,379

183,784

181,944

174,110

     

Total Assets

$  17,094,283

$  16,918,568

$  14,809,497

$  14,710,245

$  14,741,811

     

Liabilities

               

Deposits:

               

  Demand:  Noninterest bearing

$    3,976,039

$    3,822,216

$    3,479,771

$    3,369,468

$    3,362,801

     

                  Interest bearing

5,697,444

5,898,269

4,949,183

4,985,113

5,079,388

     

  Savings

1,820,013

1,801,128

1,631,617

1,634,577

1,626,996

     

  Other time

2,045,828

2,041,897

1,779,478

1,813,524

1,833,230

     

Total deposits

13,539,324

13,563,510

11,840,049

11,802,682

11,902,415

     

Securities sold under agreement to repurchase

416,839

445,840

471,581

444,999

412,825

     

Federal funds purchased

               

   and other short-term borrowing

875,641

667,546

589,261

411,815

151,352

     

Accrued interest payable

5,600

5,177

4,718

4,507

4,028

     

Long-term debt

33,147

34,433

30,000

162,609

398,132

     

Other liabilities

172,280

189,423

172,660

187,734

193,006

     

Total Liabilities

15,042,831

14,905,929

13,108,269

13,014,346

13,061,758

     

Shareholders' Equity

               

Common stock

247,120

247,189

225,808

227,247

228,322

     

Capital surplus

444,379

447,576

176,613

189,545

199,115

     

Accumulated other comprehensive loss

(88,962)

(71,205)

(55,181)

(48,591)

(49,185)

     

Retained earnings

1,448,915

1,389,079

1,353,988

1,327,698

1,301,801

     

Total Shareholders' Equity

2,051,452

2,012,639

1,701,228

1,695,899

1,680,053

     

Total Liabilities & Shareholders' Equity

$  17,094,283

$  16,918,568

$  14,809,497

$  14,710,245

$  14,741,811

     
                 

 

  

 

                       

BancorpSouth Bank

   

Consolidated Condensed Statements of Income

   

(Dollars in thousands, except per share data)

   

(Unaudited)

   
                       
 

Quarter Ended

     
 

Jun-18

 

Mar-18

 

Dec-17

 

Sep-17

 

Jun-17

   

INTEREST REVENUE:

                     

Loans and leases

$ 143,029

 

$ 136,568

 

$ 120,381

 

$ 119,599

 

$ 115,286

   

Deposits with other banks

331

 

664

 

300

 

214

 

256

   

Federal funds sold, securities purchased

                     

   under agreement to resell, FHLB and 

                     

      other equity investments

226

 

191

 

157

 

143

 

121

   

Available-for-sale securities:

                     

    Taxable

11,554

 

11,313

 

7,957

 

7,235

 

7,388

   

    Tax-exempt

2,435

 

2,504

 

2,417

 

2,514

 

2,562

   

Loans held for sale

1,715

 

955

 

1,064

 

1,229

 

1,242

   

        Total interest revenue

159,290

 

152,195

 

132,276

 

130,934

 

126,855

   
                       

INTEREST EXPENSE:

                     

Interest bearing demand

6,075

 

5,278

 

3,645

 

3,482

 

3,204

   

Savings

667

 

584

 

517

 

494

 

483

   

Other time

4,862

 

4,457

 

3,853

 

3,819

 

3,725

   

Federal funds purchased and securities sold

                     

   under agreement to repurchase

1,898

 

1,341

 

930

 

754

 

509

   

Short-term and long-term debt

3,660

 

2,455

 

1,943

 

1,824

 

1,456

   

Other

-

 

2

 

2

 

-

 

-

   

        Total interest expense

17,162

 

14,117

 

10,890

 

10,373

 

9,377

   
                       

        Net interest revenue

142,128

 

138,078

 

121,386

 

120,561

 

117,478

   

  Provision for credit losses

2,500

 

1,000

 

500

 

500

 

1,000

   

        Net interest revenue, after provision for

                     

          credit losses

139,628

 

137,078

 

120,886

 

120,061

 

116,478

   
                       

NONINTEREST REVENUE:

                     

Mortgage banking

6,904

 

13,265

 

7,246

 

6,909

 

6,134

   

Credit card, debit card and merchant fees

10,530

 

9,564

 

9,530

 

9,346

 

9,565

   

Deposit service charges

10,767

 

10,901

 

10,257

 

10,388

 

9,706

   

Security gains, net

(2)

 

27

 

523

 

5

 

23

   

Insurance commissions

32,965

 

29,130

 

25,758

 

28,616

 

31,126

   

Wealth management

5,745

 

5,697

 

5,619

 

5,386

 

5,275

   

Other

5,547

 

10,350

 

4,141

 

5,310

 

6,301

   

        Total noninterest revenue

72,456

 

78,934

 

63,074

 

65,960

 

68,130

   
                       

NONINTEREST EXPENSE:

                     

Salaries and employee benefits

91,451

 

91,197

 

77,268

 

80,541

 

80,723

   

Occupancy, net of rental income

11,103

 

10,804

 

10,064

 

10,343

 

10,455

   

Equipment

3,804

 

3,754

 

3,710

 

3,352

 

3,438

   

Deposit insurance assessments

3,129

 

2,360

 

2,659

 

2,499

 

2,261

   

Other

35,695

 

39,586

 

32,180

 

30,168

 

30,676

   

        Total noninterest expense

145,182

 

147,701

 

125,881

 

126,903

 

127,553

   

        Income before income taxes

66,902

 

68,311

 

58,079

 

59,118

 

57,055

   

Income tax expense

12,856

 

14,820

 

20,556

 

19,590

 

19,166

   

        Net income

$  54,046

 

$  53,491

 

$  37,523

 

$  39,528

 

$  37,889

   
                       

Net income per share: Basic

$      0.55

 

$      0.54

 

$      0.42

 

$      0.43

 

$      0.41

   

                                  Diluted

$      0.55

 

$      0.54

 

$      0.41

 

$      0.43

 

$      0.41

   
                       
                       
                       
                       
                       
                       

  

                   

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

                   
 

Quarter Ended

 

Jun-18

 

Mar-18

 

Dec-17

 

Sep-17

 

Jun-17

LOAN AND LEASE PORTFOLIO:

                 

Commercial and industrial

$  1,668,174

 

$  1,695,718

 

$  1,480,279

 

$  1,506,352

 

$  1,566,459

Real estate

                 

   Consumer mortgages

3,143,215

 

3,000,479

 

2,864,623

 

2,826,333

 

2,776,213

   Home equity

653,450

 

655,634

 

638,394

 

626,961

 

624,868

   Agricultural

315,828

 

313,470

 

243,449

 

247,211

 

245,646

   Commercial and industrial-owner occupied

2,147,176

 

2,102,493

 

1,846,085

 

1,835,430

 

1,795,321

   Construction, acquisition and development

1,346,370

 

1,377,153

 

1,153,187

 

1,175,979

 

1,156,901

   Commercial real estate

2,636,533

 

2,640,503

 

2,345,231

 

2,336,219

 

2,341,633

Credit cards

102,790

 

102,114

 

107,848

 

104,613

 

104,169

All other

404,578

 

409,285

 

377,338

 

396,411

 

407,330

     Total loans

$ 12,418,114

 

$ 12,296,849

 

$ 11,056,434

 

$ 11,055,509

 

$ 11,018,540

                   

ALLOWANCE FOR CREDIT LOSSES:

                 

Balance, beginning of period

$     119,434

 

$     118,200

 

$     119,496

 

$     121,561

 

$     125,196

                   

Loans and leases charged-off:

                 

Commercial and industrial

(1,057)

 

(484)

 

(1,234)

 

(1,963)

 

(3,773)

Real estate

                 

   Consumer mortgages

(366)

 

(134)

 

(773)

 

(1,193)

 

(522)

   Home equity

(107)

 

(143)

 

(95)

 

(439)

 

(125)

   Agricultural

(6)

 

(12)

 

(5)

 

(54)

 

(6)

   Commercial and industrial-owner occupied

(279)

 

(41)

 

(720)

 

(20)

 

(1,460)

   Construction, acquisition and development

(66)

 

(163)

 

(206)

 

(29)

 

(54)

   Commercial real estate

(946)

 

(35)

 

(159)

 

(49)

 

(1)

Credit cards

(830)

 

(794)

 

(849)

 

(745)

 

(781)

All other

(551)

 

(725)

 

(627)

 

(711)

 

(591)

     Total loans charged-off

(4,208)

 

(2,531)

 

(4,668)

 

(5,203)

 

(7,313)

                   

Recoveries:

                 

Commercial and industrial

684

 

372

 

599

 

481

 

1,034

Real estate

                 

   Consumer mortgages

361

 

95

 

755

 

642

 

339

   Home equity

72

 

333

 

69

 

378

 

110

   Agricultural

10

 

79

 

7

 

77

 

34

   Commercial and industrial-owner occupied

46

 

80

 

391

 

285

 

481

   Construction, acquisition and development

308

 

1,262

 

483

 

260

 

208

   Commercial real estate

149

 

53

 

98

 

151

 

75

Credit cards

367

 

220

 

218

 

177

 

205

All other

197

 

271

 

252

 

187

 

192

     Total recoveries

2,194

-

2,765

-

2,872

-

2,638

-

2,678

                   

Net (charge-offs)recoveries 

(2,014)

 

234

 

(1,796)

 

(2,565)

 

(4,635)

                   

Provision charged to operating expense

2,500

 

1,000

 

500

 

500

 

1,000

Balance, end of period

$     119,920

 

$     119,434

 

$     118,200

 

$     119,496

 

$     121,561

                   

Average loans for period

$ 12,334,756

 

$ 12,084,020

 

$ 11,010,187

 

$ 11,013,270

 

$ 10,883,102

                   

Ratio:

                 

Net charge-offs(recoveries) to average loans (annualized)

0.07%

 

(0.01%)

 

0.06%

 

0.09%

 

0.17%

                   
                   

  

                         

BancorpSouth Bank

     

Selected Loan Data

     

(Dollars in thousands)

     

(Unaudited)

     
                         
 

Quarter Ended

     
 

Jun-18

 

Mar-18

 

Dec-17

 

Sep-17

 

Jun-17

     

NON-PERFORMING ASSETS

                       

NON-PERFORMING LOANS AND LEASES:

                       

  Nonaccrual Loans and Leases

                       

    Commercial and industrial

$ 11,090

 

$ 11,122

 

$ 10,178

 

$  8,776

 

$  9,988

     

    Real estate

                       

       Consumer mortgages

22,588

 

26,832

 

22,988

 

23,635

 

24,690

     

       Home equity

2,446

 

2,587

 

2,956

 

2,555

 

3,183

     

       Agricultural

1,536

 

6,225

 

6,160

 

5,919

 

6,172

     

       Commercial and industrial-owner occupied

12,275

 

12,210

 

12,585

 

7,558

 

10,215

     

       Construction, acquisition and development

1,563

 

2,223

 

2,197

 

1,771

 

2,223

     

       Commercial real estate

8,265

 

3,597

 

4,318

 

4,645

 

6,418

     

    Credit cards

104

 

136

 

74

 

126

 

122

     

    All other

178

 

371

 

435

 

811

 

574

     

         Total nonaccrual loans and leases

$ 60,045

 

$ 65,303

 

$ 61,891

 

$ 55,796

 

$ 63,585

     
                         

  Loans and Leases 90+ Days Past Due, Still Accruing:

6,335

 

6,519

 

8,503

 

1,855

 

1,793

     

  Restructured Loans and Leases, Still Accruing

6,982

 

9,681

 

8,060

 

7,366

 

6,303

     

     Total non-performing loans and leases

$ 73,362

 

$ 81,503

 

$ 78,454

 

$ 65,017

 

$ 71,681

     
                         

OTHER REAL ESTATE OWNED:

7,828

 

9,362

 

6,038

 

5,956

 

7,704

     
                         

Total Non-performing Assets

$ 81,190

 

$ 90,865

 

$ 84,492

 

$ 70,973

 

$ 79,385

     
                         

Additions to Nonaccrual Loans and Leases During the Quarter

$ 16,902

 

$ 16,641

 

$ 20,799

 

$ 16,975

 

$ 17,020

     
                         

  Loans and Leases 30-89 Days Past Due, Still Accruing:

                       

    Commercial and industrial

$  7,540

 

$  5,020

 

$  1,990

 

$  3,791

 

$  3,304

     

    Real estate

                       

       Consumer mortgages

16,242

 

17,076

 

15,080

 

18,603

 

12,395

     

       Home equity

2,231

 

1,768

 

1,858

 

2,042

 

2,590

     

       Agricultural

6,415

 

295

 

191

 

476

 

197

     

       Commercial and industrial-owner occupied

2,338

 

4,356

 

1,655

 

4,453

 

2,228

     

       Construction, acquisition and development

1,240

 

2,215

 

1,386

 

4,464

 

2,639

     

       Commercial real estate

816

 

679

 

1,200

 

1,206

 

1,183

     

    Credit cards

778

 

705

 

851

 

720

 

705

     

    All other

1,435

 

733

 

951

 

699

 

1,203

     

         Total Loans and Leases 30-89 days past due, still accruing

$ 39,035

 

$ 32,847

 

$ 25,162

 

$ 36,454

 

$ 26,444

     
                         

Credit Quality Ratios:

                       

Provision for credit losses to average loans and leases (annualized)

0.08%

 

0.03%

 

0.02%

 

0.02%

 

0.04%

     

Allowance for credit losses to net loans and leases

0.97%

 

0.97%

 

1.07%

 

1.08%

 

1.10%

     

Allowance for credit losses to non-performing loans and leases

163.46%

 

146.54%

 

150.66%

 

183.79%

 

169.59%

     

Allowance for credit losses to non-performing assets

147.70%

 

131.44%

 

139.89%

 

168.37%

 

153.13%

     

Non-performing loans and leases to net loans and leases

0.59%

 

0.66%

 

0.71%

 

0.59%

 

0.65%

     

Non-performing assets to net loans and leases

0.65%

 

0.74%

 

0.76%

 

0.64%

 

0.72%

     
                         

 

  

 

                                         

BancorpSouth Bank

                     

Selected Loan Data

                     

(Dollars in thousands)

                     

(Unaudited)

                     
                                         
 

June 30, 2018

         
     

Special

                 

Purchased

             
 

Pass

 

Mention

 

Substandard

 

Doubtful

 

Loss

 

Impaired

 

Credit Impaired

 

Total

         

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

                                       

Commercial and industrial

$  1,609,943

 

$       -

 

$     51,862

 

$    858

 

$  -

 

$  5,347

 

$              164

 

$  1,668,174

         

Real estate

                                       

   Consumer mortgages

3,084,706

 

-

 

54,775

 

180

 

-

 

3,554

 

-

 

3,143,215

         

   Home equity

644,893

 

-

 

8,281

 

-

 

-

 

276

 

-

 

653,450

         

   Agricultural

297,506

 

-

 

15,080

 

-

 

-

 

228

 

3,014

 

315,828

         

   Commercial and industrial-owner occupied

2,079,866

 

-

 

57,429

 

-

 

-

 

7,964

 

1,917

 

2,147,176

         

   Construction, acquisition and development

1,329,372

 

-

 

16,569

 

-

 

-

 

424

 

5

 

1,346,370

         

   Commercial real estate

2,594,808

 

-

 

35,424

 

-

 

-

 

6,301

 

-

 

2,636,533

         

Credit cards

102,790

 

-

 

-

 

-

 

-

 

-

 

-

 

102,790

         

All other

393,765

 

-

 

10,813

 

-

 

-

 

-

 

-

 

404,578

         

     Total loans

$ 12,137,649

 

$       -

 

$   250,233

 

$ 1,038

 

$  -

 

$ 24,094

 

$            5,100

 

$ 12,418,114

         
                                         
                                         
 

March 31, 2018

         
     

Special

                 

Purchased

             
 

Pass

 

Mention

 

Substandard

 

Doubtful

 

Loss

 

Impaired

 

Credit Impaired

 

Total

         

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

                                       

Commercial and industrial

$  1,646,715

 

$       -

 

$     41,194

 

$    599

 

$  -

 

$  6,549

 

$              661

 

$  1,695,718

         

Real estate

                                       

   Consumer mortgages

2,934,287

 

-

 

61,049

 

181

 

-

 

4,962

 

-

 

3,000,479

         

   Home equity

647,562

 

-

 

7,791

 

-

 

-

 

281

 

-

 

655,634

         

   Agricultural

296,260

 

-

 

9,557

 

-

 

-

 

4,744

 

2,909

 

313,470

         

   Commercial and industrial-owner occupied

2,025,321

 

-

 

67,204

 

-

 

-

 

8,150

 

1,818

 

2,102,493

         

   Construction, acquisition and development

1,360,548

 

-

 

16,087

 

-

 

-

 

518

 

-

 

1,377,153

         

   Commercial real estate

2,598,283

 

1,207

 

39,395

 

-

 

-

 

1,618

 

-

 

2,640,503

         

Credit cards

102,114

 

-

 

-

 

-

 

-

 

-

 

-

 

102,114

         

All other

399,205

 

-

 

10,080

 

-

 

-

 

-

 

-

 

409,285

         

     Total loans

$ 12,010,295

 

$ 1,207

 

$   252,357

 

$    780

 

$  -

 

$ 26,822

 

$            5,388

 

$ 12,296,849

         
                                         

 

  

 

                                       

BancorpSouth Bank

   

Geographical Information

   

(Dollars in thousands)

   

(Unaudited)

   
                                       
 

June 30, 2018

   
 

Alabama

                                   
 

and Florida

                                   
 

Panhandle

 

Arkansas

 

Louisiana

 

Mississippi

 

Missouri

 

Tennessee

 

Texas

 

Other

 

Total

   

LOAN AND LEASE PORTFOLIO:

                                     

Commercial and industrial

$   108,863

 

$   157,532

 

$   288,909

 

$   581,187

 

$  78,691

 

$   104,027

 

$   312,245

 

$  36,720

 

$  1,668,174

   

Real estate

                                     

   Consumer mortgages

425,740

 

338,448

 

316,997

 

874,822

 

93,044

 

331,427

 

649,749

 

112,988

 

3,143,215

   

   Home equity

98,027

 

48,025

 

89,283

 

231,900

 

20,345

 

143,382

 

20,700

 

1,788

 

653,450

   

   Agricultural

8,330

 

86,002

 

38,186

 

69,253

 

6,192

 

11,751

 

96,114

 

-

 

315,828

   

   Commercial and industrial-owner occupied

204,044

 

207,077

 

334,836

 

747,080

 

50,762

 

154,312

 

449,065

 

-

 

2,147,176

   

   Construction, acquisition and development

103,155

 

85,836

 

108,039

 

338,837

 

17,269

 

184,188

 

509,046

 

-

 

1,346,370

   

   Commercial real estate

315,605

 

339,100

 

366,568

 

550,501

 

209,819

 

209,919

 

645,021

 

-

 

2,636,533

   

Credit cards

-

 

-

 

-

 

-

 

-

 

-

 

-

 

102,790

 

102,790

   

All other

44,640

 

40,282

 

28,523

 

189,663

 

2,730

 

20,971

 

71,781

 

5,988

 

404,578

   

     Total loans

$ 1,308,404

 

$ 1,302,302

 

$ 1,571,341

 

$ 3,583,243

 

$ 478,852

 

$ 1,159,977

 

$ 2,753,721

 

$ 260,274

 

$ 12,418,114

   
                                       

NON-PERFORMING LOANS AND LEASES:

                                     

Commercial and industrial

$           93

 

$         503

 

946

 

$       3,586

 

$    3,709

 

$         164

 

$       2,163

 

$       879

 

$       12,043

   

Real estate

                                     

   Consumer mortgages

2,481

 

3,862

 

4873

 

9,962

 

-

 

3,274

 

4,245

 

1,028

 

29,725

   

   Home equity

404

 

214

 

877

 

722

 

70

 

149

 

51

 

2

 

2,489

   

   Agricultural

50

 

758

 

5

 

379

 

-

 

-

 

692

 

-

 

1,884

   

   Commercial and industrial-owner occupied

42

 

1,220

 

940

 

4,129

 

4,160

 

967

 

2,848

 

-

 

14,306

   

   Construction, acquisition and development

38

 

640

 

294

 

256

 

-

 

-

 

476

 

-

 

1,704

   

   Commercial real estate

577

 

456

 

6727

 

1,665

 

-

 

-

 

42

 

-

 

9,467

   

Credit cards

-

 

-

 

-

 

-

 

-

 

-

 

-

 

1,133

 

1,133

   

All other

10

 

-

 

6

 

441

 

-

 

150

 

4

 

-

 

611

   

     Total loans

$       3,695

 

$       7,653

 

$     14,668

 

$     21,140

 

$    7,939

 

$       4,704

 

$     10,521

 

$    3,042

 

$       73,362

   
                                       

NON-PERFORMING LOANS AND LEASES

                                     

   AS A PERCENTAGE OF OUTSTANDING:

                                     

Commercial and industrial

0.09%

 

0.32%

 

0.33%

 

0.62%

 

4.71%

 

0.16%

 

0.69%

 

2.39%

 

0.72%

   

Real estate

                                     

   Consumer mortgages

0.58%

 

1.14%

 

1.54%

 

1.14%

 

0.00%

 

0.99%

 

0.65%

 

0.91%

 

0.95%

   

   Home equity

0.41%

 

0.45%

 

0.98%

 

0.31%

 

0.34%

 

0.10%

 

0.25%

 

0.11%

 

0.38%

   

   Agricultural

0.60%

 

0.88%

 

0.01%

 

0.55%

 

0.00%

 

0.00%

 

0.72%

 

N/A

 

0.60%

   

   Commercial and industrial-owner occupied

0.02%

 

0.59%

 

0.28%

 

0.55%

 

8.20%

 

0.63%

 

0.63%

 

N/A

 

0.67%

   

   Construction, acquisition and development

0.04%

 

0.75%

 

0.27%

 

0.08%

 

0.00%

 

0.00%

 

0.09%

 

N/A

 

0.13%

   

   Commercial real estate

0.18%

 

0.13%

 

1.84%

 

0.30%

 

0.00%

 

0.00%

 

0.01%

 

N/A

 

0.36%

   

Credit cards

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

1.10%

 

1.10%

   

All other

0.02%

 

0.00%

 

0.02%

 

0.23%

 

0.00%

 

0.72%

 

0.01%

 

0.00%

 

0.15%

   

     Total loans

0.28%

 

0.59%

 

0.93%

 

0.59%

 

1.66%

 

0.41%

 

0.38%

 

1.17%

 

0.59%

   
                                       

 

  

 

         
 

BancorpSouth Bank

 

Acquired Loan Information

 

(Dollars in thousands)

 

(Unaudited)

         
         
   

Quarter Ended June 30, 2018

         
   

Acquired Loans
Accounted for Under
ASC 310-20

Acquired Loans
Accounted for
Under ASC 310-30

Total Acquired Loans

         
 

Net book value of acquired loans at beginning of period

$                        1,070,820

$                              5,388

$     1,076,208

 

Fair value of loans acquired during the period

-

-

-

 

Reductions in acquired loans

(148,925)

(287)

(149,212)

 

Net book value of acquired loans at end of period

$                          921,895

$                              5,101

$       926,996

         
         
 

Loan mark on acquired loans at beginning of period

$                           (13,098)

$                            (6,231)

$        (19,329)

 

Loan mark recorded on loans acquired during the period

-

-

-

 

Change in nonaccretable difference (for ASC 310-30 loans only)

 N/A 

2,163

2,163

 

Net accretion recognized on acquired loans

2,683

325

3,008

 

Other adjustments to accretable yield

(487)

160

(327)

 

Remaining loan mark on acquired loans*

$                           (10,902)

$                            (3,583)

$        (14,485)

         
   

Quarter Ended March 31, 2018

         
   

Acquired Loans
Accounted for Under
ASC 310-20

Acquired Loans
Accounted for
Under ASC 310-30

Total Acquired Loans

         
 

Net book value of acquired loans at beginning of period

$                                    -

$                                    -

$                 -

 

Fair value of loans acquired during the period

1,179,376

6,706

1,186,082

 

Reductions in acquired loans

(108,556)

(1,318)

(109,874)

 

Net book value of acquired loans at end of period

$                        1,070,820

$                              5,388

$     1,076,208

         
         
 

Loan mark on acquired loans at beginning of period

$                                    -

$                                    -

$                 -

 

Loan mark recorded on loans acquired during the period

(15,621)

(6,359)

(21,980)

 

Change in nonaccretable difference (for ASC 310-30 loans only)

 N/A 

-

-

 

Net accretion recognized on acquired loans

2,523

128

2,651

 

Remaining loan mark on acquired loans

$                           (13,098)

$                            (6,231)

$        (19,329)

         
         
   

Quarter Ended

Quarter Ended

 
   

6/30/2018

3/31/2018

 
 

Loan yield, as reported

4.67%

4.60%

 
         
 

Loan yield, excluding net accretion on acquired loans

4.57%

4.51%

 
         
 

Net interest margin, as reported

3.71%

3.67%

 
         
 

Net interest margin, excluding net accretion on acquired loans 

3.63%

3.60%

 
         
 

* The remaining loan mark shown above for loans accounted for under ASC 310-30 includes $424 thousand in accretable 

 

yield as of June 30, 2018 compared to $895 thousand in accretable yield as of March 31, 2018. In addition, the same loans

 

include $3.2 million in nonaccretable difference as of June 30, 2018 compared to $5.3 million as of March 31, 2018.

 

  

 

                         

BancorpSouth Bank

     

Noninterest Revenue and Expense

     

(Dollars in thousands)

     

(Unaudited)

     
                         
 

Quarter Ended

       
 

Jun-18

 

Mar-18

 

Dec-17

 

Sep-17

 

Jun-17

     

NONINTEREST REVENUE:

                       

Mortgage banking excl. MSR and MSR Hedge market value adj

$    7,105

 

$    7,732

 

$    4,868

 

$    6,955

 

$    7,643

     

MSR and MSR Hedge market value adjustment

(201)

 

5,533

 

2,378

 

(46)

 

(1,509)

     

Credit card, debit card and merchant fees

10,530

 

9,564

 

9,530

 

9,346

 

9,565

     

Deposit service charges

10,767

 

10,901

 

10,257

 

10,388

 

9,706

     

Securities gains, net

(2)

 

27

 

523

 

5

 

23

     

Insurance commissions

32,965

 

29,130

 

25,758

 

28,616

 

31,126

     

Trust income

3,850

 

3,848

 

3,985

 

3,803

 

3,679

     

Annuity fees

357

 

297

 

216

 

246

 

264

     

Brokerage commissions and fees

1,538

 

1,552

 

1,418

 

1,337

 

1,332

     

Bank-owned life insurance

3,259

 

1,947

 

1,732

 

2,700

 

1,710

     

Other miscellaneous income

2,288

 

8,403

 

2,409

 

2,610

 

4,591

     

     Total noninterest revenue

$  72,456

 

$  78,934

 

$  63,074

 

$  65,960

 

$  68,130

     
                         

NONINTEREST EXPENSE:

                       

Salaries and employee benefits

$  91,451

 

$  91,197

 

$  77,268

 

$  80,541

 

$  80,723

     

Occupancy, net of rental income

11,103

 

10,804

 

10,064

 

10,343

 

10,455

     

Equipment

3,804

 

3,754

 

3,710

 

3,352

 

3,438

     

Deposit insurance assessments

3,129

 

2,360

 

2,659

 

2,499

 

2,261

     

Advertising

1,226

 

855

 

1,671

 

1,185

 

1,037

     

Foreclosed property expense

997

 

366

 

1,035

 

447

 

960

     

Telecommunications

1,327

 

1,217

 

1,219

 

1,192

 

1,233

     

Public relations

829

 

794

 

705

 

675

 

654

     

Data processing

7,970

 

7,360

 

6,855

 

6,942

 

7,230

     

Computer software

3,624

 

3,336

 

3,172

 

3,074

 

2,913

     

Amortization of intangibles

1,559

 

1,602

 

979

 

994

 

1,010

     

Legal

1,568

 

691

 

1,326

 

1,016

 

1,330

     

Merger expense

1,911

 

5,727

 

688

 

-

 

-

     

Postage and shipping

1,151

 

1,237

 

1,092

 

1,050

 

1,080

     

Other miscellaneous expense

13,533

 

16,401

 

13,438

 

13,593

 

13,229

     

     Total noninterest expense

$ 145,182

 

$ 147,701

 

$ 125,881

 

$ 126,903

 

$ 127,553

     
                         

INSURANCE COMMISSIONS:

                       

Property and casualty commissions

$  23,041

 

$  20,100

 

$  18,667

 

$  21,086

 

$  22,363

     

Life and health commissions

6,753

 

5,943

 

5,900

 

6,134

 

6,623

     

Risk management income

605

 

750

 

608

 

703

 

600

     

Other

2,566

 

2,337

 

583

 

693

 

1,540

     

     Total insurance commissions

$  32,965

 

$  29,130

 

$  25,758

 

$  28,616

 

$  31,126

     
                         

 

  

 

                                   

BancorpSouth Bank

               

Selected Additional Information

               

(Dollars in thousands)

               

(Unaudited)

               
                                   
 

Quarter Ended

               
 

Jun-18

 

Mar-18

 

Dec-17

 

Sep-17

 

Jun-17

               

MORTGAGE SERVICING RIGHTS:

                                 

Fair value, beginning of period

$     75,206

 

$     69,190

 

$     66,417

 

$     65,491

 

$     67,161

               

Additions to mortgage servicing rights:

                                 

   Originations of servicing assets

3,516

 

2,683

 

3,011

 

3,393

 

2,772

               

Changes in fair value:

                                 

   Due to payoffs/paydowns

(2,916)

 

(2,382)

 

(2,659)

 

(2,502)

 

(2,825)

               

   Due to change in valuation inputs or

                                 

     assumptions used in the valuation model

(191)

 

5,716

 

2,422

 

36

 

(1,616)

               

   Other changes in fair value

(1)

 

(1)

 

(1)

 

(1)

 

(1)

               

Fair value, end of period

$     75,614

 

$     75,206

 

$     69,190

 

$     66,417

 

$     65,491

               
                                   

MORTGAGE BANKING REVENUE:

                                 

Production revenue:

                                 

   Origination

$       5,295

 

$       5,239

 

$       2,824

 

$       4,809

 

$       5,771

               

   Servicing

4,726

 

4,875

 

4,703

 

4,648

 

4,697

               

   Payoffs/Paydowns

(2,916)

-

(2,382)

-

(2,659)

-

(2,502)

-

(2,825)

               

     Total production revenue

7,105

 

7,732

 

4,868

 

6,955

-

7,643

               

Market value adjustment on MSR

(191)

 

5,716

 

2,422

 

36

 

(1,616)

               

Market value adjustment on MSR Hedge

(10)

 

(183)

 

(44)

 

(82)

 

107

               

Total mortgage banking revenue

$       6,904

 

$     13,265

 

$       7,246

 

$       6,909

 

$       6,134

               
                                   
                                   
                                   

Mortgage loans serviced

$ 6,579,444

 

$ 6,532,950

 

$ 6,533,642

 

$ 6,506,550

 

$ 6,431,273

               

MSR/mtg loans serviced

1.15%

 

1.15%

 

1.06%

 

1.02%

 

1.02%

               
                                   

AVAILABLE-FOR-SALE SECURITIES, at fair value

                                 

U.S. Government agencies

$ 2,235,238

 

$ 2,385,962

 

$ 2,214,995

 

$ 1,687,186

 

$ 1,713,374

               

U.S. Government agency issued residential

                                 

   mortgage-back securities

141,443

 

139,148

 

148,548

 

157,891

 

159,246

               

U.S. Government agency issued commercial

                                 

   mortgage-back securities

122,974

 

124,041

 

122,068

 

153,509

 

170,642

               

Obligations of states and political subdivisions

329,099

 

340,616

 

312,931

 

328,314

 

345,130

               

Total available-for-sale securities

$ 2,828,754

 

$ 2,989,767

 

$ 2,798,542

 

$ 2,326,900

 

$ 2,388,392

               
                                   

 

  

 

BancorpSouth Bank

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(Dollars in thousands, except per share amounts)

(Unaudited)

                           
                           

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

                           

Reconciliation of Net Operating Income and Net Operating Income-Excluding MSR to Net Income:

                           
     

Quarter ended

   
     

6/30/2018

 

3/31/2018

 

12/31/2017

 

9/30/2017

 

6/30/2017

   
                           

Net income

   

$     54,046

 

$  53,491

 

$   37,523

 

$  39,528

 

$  37,889

   

Plus:     Merger expense, net of tax

 

1,434

 

4,298

 

427

 

-

 

-

   

             Changes due to tax reform

 

-

 

-

 

623

 

-

 

-

   

Less:     Security (losses)/gains, net of tax

 

(2)

 

20

 

325

 

3

 

14

   

Net operating income

   

$     55,482

 

$  57,769

 

$   38,248

 

$  39,525

 

$  37,875

   
                           

Less:     MSR market value adjustment, net of tax

 

(151)

 

4,153

 

1,476

 

(28)

 

(936)

   

Net operating income-excluding MSR

   

$     55,633

 

$  53,616

 

$   36,772

 

$  39,553

 

$  38,811

   
                           
                           

Reconciliation of Total Operating Expense to Total Noninterest Expense:

                 
                           

Total noninterest expense

   

$    145,182

 

$ 147,701

 

$ 125,881

 

$ 126,903

 

$ 127,553

   

Less:     Merger expense

 

1,911

 

5,727

 

688

 

-

 

-

   

Total operating expense

   

$    143,271

 

$ 141,974

 

$ 125,193

 

$ 126,903

 

$ 127,553

   

 

  

 

BancorpSouth Bank

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(Dollars in thousands, except per share amounts)

(Unaudited)

                     
                     
                     

Reconciliation of Tangible Assets and Tangible Shareholders' Equity to 

         

Total Assets and Total Shareholders' Equity:

         
                     
   

Quarter ended

   

6/30/2018

 

3/31/2018

 

12/31/2017

 

9/30/2017

 

6/30/2017

Tangible assets

                   

Total assets

 

$ 17,222,491

 

$ 17,185,772

 

$ 15,298,518

 

$ 14,760,394

 

$ 14,843,130

Less:     Goodwill

 

588,004

 

580,900

 

300,798

 

300,798

 

300,798

 

              Other identifiable intangible assets

 

39,031

 

40,590

 

17,882

 

18,860

 

19,854

Total tangible assets

 

$ 16,595,456

 

$ 16,564,282

 

$ 14,979,838

 

$ 14,440,736

 

$ 14,522,478

                     

Tangible shareholders' equity

                   

Total shareholders' equity

 

$  2,072,083

 

$  2,060,487

 

$  1,713,485

 

$  1,700,502

 

$  1,691,832

Less:     Goodwill

 

588,004

 

580,900

 

300,798

 

300,798

 

300,798

 

              Other identifiable intangible assets

 

39,031

 

40,590

 

17,882

 

18,860

 

19,854

Total tangible shareholders' equity

   

$  1,445,048

 

$  1,438,997

 

$  1,394,805

 

$  1,380,844

 

$  1,371,180

                       

Total average assets

   

$ 17,094,283

 

$ 16,918,568

 

$ 14,809,497

 

$ 14,710,245

 

$ 14,741,811

Total shares of common stock outstanding

   

98,700,509

 

99,636,779

 

90,312,378

 

90,329,896

 

91,022,729

Average shares outstanding-diluted

   

99,057,054

 

98,942,268

 

90,546,824

 

91,099,770

 

91,530,552

                       

Tangible shareholders' equity to tangible assets (1)

   

8.71%

 

8.69%

 

9.31%

 

9.56%

 

9.44%

Return on tangible equity (2)

   

15.00%

 

15.08%

 

10.67%

 

11.36%

 

11.08%

Operating return on tangible equity-excluding MSR (3)

   

15.44%

 

15.11%

 

10.46%

 

11.36%

 

11.35%

Operating return on average assets-excluding MSR (4)

   

1.31%

 

1.29%

 

0.99%

 

1.07%

 

1.06%

Operating return on average shareholders' equity-excluding MSR (5)

   

10.88%

 

10.80%

 

8.58%

 

9.25%

 

9.27%

Tangible book value per share (6)

   

$        14.64

 

$        14.44

 

$        15.44

 

$        15.29

 

$        15.06

Operating earnings per share (7)

   

$          0.56

 

$          0.58

 

$          0.42

 

$          0.43

 

$          0.41

Operating earnings per share-excluding MSR (8)

   

$          0.56

 

$          0.54

 

$          0.41

 

$          0.43

 

$          0.42

                       

 

                       

(1)

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

                       

(2)

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

                       

(3)

Operating return on tangible equity-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by tangible shareholders' equity.

                       

(4)

Operating return on average assets-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by total average assets.

                       

(5)

Operating return on average shareholders' equity-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by average shareholders' equity.

                       

(6)

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

                       

(7)

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

                       

(8)

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

                       

Efficiency Ratio (tax equivalent) and Operating Efficiency Ratio-excluding MSR (tax equivalent) Definitions

 
 

The efficiency ratio (tax equivalent) and the operating efficiency ratio-excluding MSR (tax equivalent) are supplemental financial measures utilized in management's internal evaluation of the Company's use of resources and are not defined under GAAP. The efficiency ratio (tax equivalent) is calculated by dividing total noninterest expense by total revenue, which includes net interest income plus noninterest income plus the tax equivalent adjustment.  The operating efficiency ratio-excluding MSR (tax equivalent) excludes expense  items otherwise disclosed as non-operating from total noninterest expense.  In addition, the MSR valuation adjustment as well as securities gains and losses are excluded from total revenue.

 

 

 

 

SOURCE BancorpSouth Bank

For further information: John G. Copeland, Senior Executive Vice President and Chief Financial Officer, 662/680-2536; Will Fisackerly, Senior Vice President and Director of Corporate Finance, 662/680-2475

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