BancorpSouth Reports Record Quarterly Earnings

 

TUPELO, Miss., Oct. 17, 2018 /PRNewswire/ -- BancorpSouth Bank (NYSE: BXS) (the "Company") today announced financial results for the quarter ended September 30, 2018.

Highlights for the third quarter of 2018 included:

  • Record quarterly net income of $66.7 million, or $0.67 per diluted share, which represents an increase of 56 percent on a per share basis compared with the third quarter of 2017.
  • Recognized a one-time tax benefit of $11.3 million, or $0.11 per diluted share, as a result of a voluntary contribution to the Company's pension plan as well as a tax accounting method change related to the recognition of certain software development costs.
  • Earnings benefited from a positive pre-tax mortgage servicing rights ("MSR") valuation adjustment of $1.5 million.
  • Net operating income – excluding MSR – of $55.0 million, or $0.56 per diluted share.
  • Net interest margin – excluding accretable yield – of 3.62 percent remained stable compared with the second quarter of 2018.
  • Continued focus on expense control reflected by a $1.8 million decline in total operating expense compared with the second quarter of 2018.
  • Repurchased 166,721 shares of outstanding common stock at a weighted average price of $33.38 per share.
  • Completed the acquisition of Icon Capital Corporation effective October 1, 2018, which will add over $600 million in both loans and deposits to the Company's presence in Houston, Texas in the fourth quarter.

The Company reported net income of $66.7 million, or $0.67 per diluted share, for the third quarter of 2018 compared with net income of $39.5 million, or $0.43 per diluted share, for the third quarter of 2017 and net income of $54.0 million, or $0.55 per diluted share, for the second quarter of 2018.  The Company reported net operating income – excluding MSR – of $55.0 million, or $0.56 per diluted share, for the third quarter of 2018 compared with $39.6 million, or $0.43 per diluted share, for the third quarter of 2017 and $55.6 million, or $0.56 per diluted share, for the second 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, MSR valuation adjustments, restructuring charges, merger-related expenses, and other one-time charges. 

"Our results for the quarter are highlighted by continued strong credit quality, a decline in total operating expense, and a stable core net interest margin," remarked Dan Rollins, Chairman and Chief Executive Officer.  "We continue to experience a very competitive lending environment as well as upward pressure on deposit costs.  We are pleased to have maintained a stable net interest margin – excluding accretable yield – at 3.62 percent despite these rising deposit costs and slower than anticipated balance sheet growth.  We are also proud of our ability to continue to challenge expenses and realize cost savings from our previous mergers, which is evidenced by the $1.8 million decline in total operating expense."

"Additionally, our third quarter income tax expense includes a one-time income tax benefit totaling $11.3 million, or $0.11 per diluted share, as a result of a voluntary pension contribution as well as a tax method change related to the recognition of software development costs.  This benefit is the result of our ability to deduct these items on the Company's 2017 federal income tax return at the prior statutory rate of 35 percent."

"Finally, we are pleased to have recently completed our merger with Icon Bank of Texas and its parent company in Houston, Texas.  We are excited about the experience and leadership Mark Reiley and John Green and their team can provide in our efforts to grow in the Houston market.  We anticipate completing the operational integration of Icon during the fourth quarter of this year."

Net Interest Revenue

Net interest revenue was $142.1 million for the third quarter of 2018, an increase of 17.9 percent from $120.6 million for the third quarter of 2017 and flat compared with the second quarter of 2018.  The fully taxable equivalent net interest margin was 3.67 percent for the third quarter of 2018 compared with 3.58 percent for the third quarter of 2017 and 3.71 percent for the second quarter of 2018.  Yields on net loans and leases were 4.72 percent for the third quarter of 2018 compared with 4.33 percent for the third quarter of 2017 and 4.67 percent for the second quarter of 2018, while yields on total interest earning assets were 4.21 percent for the third quarter of 2018 compared with 3.89 percent for the third quarter of 2017 and 4.15 percent for the second quarter of 2018.  The net interest margin, excluding accretable yield, was 3.62 percent for the third quarter of 2018 compared with 3.63 percent for the second quarter of 2018 while yields on net loans and leases, excluding accretable yield, were 4.64 percent for the third quarter of 2018 compared with 4.57 percent for the second quarter of 2018.  Purchase accounting accretion did not impact the net interest margin or net loan and lease yields for the third quarter of 2017.  The average cost of deposits was 0.43 percent for the third quarter of 2018 compared with 0.26 percent for the third quarter of 2017 and 0.34 percent for the second quarter of 2018.

Asset, Deposit and Loan Activity

Total assets were $17.2 billion at September 30, 2018 compared with $14.8 billion at September 30, 2017.  Loans and leases, net of unearned income, were $12.4 billion at September 30, 2018 compared with $11.1 billion at September 30, 2017.  Total deposits were $13.3 billion at September 30, 2018 compared with $11.8 billion at September 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, but do not include the impact of the acquisition of Icon, which closed effective October 1, 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 third quarter of 2018 reflect no provision for credit losses, compared with a provision of $0.5 million for the third quarter of 2017 and a provision of $2.5 million for the second quarter of 2018.  Net recoveries for the third quarter of 2018 were $1.1 million, compared with net charge-offs of $2.6 million for the third quarter of 2017 and net charge-offs of $2.0 million for the second quarter of 2018.  The allowance for credit losses was $121.0 million, or 0.97 percent of net loans and leases, at September 30, 2018, compared with $119.5 million, or 1.08 percent of net loans and leases, at September 30, 2017 and $119.9 million, or 0.97 percent of net loans and leases, at June 30, 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 $70.3 million, or 0.56 percent of net loans and leases, at September 30, 2018 compared with $71.0 million, or 0.64 percent of net loans and leases, at September 30, 2017, and $81.2 million, or 0.65 percent of net loans and leases, at June 30, 2018.  Other real estate owned was $4.3 million at September 30, 2018 compared with $6.0 million at September 30, 2017 and $7.8 million at June 30, 2018.

Noninterest Revenue

Noninterest revenue was $71.6 million for the third quarter of 2018, compared with $66.0 million for the third quarter of 2017 and $72.5 million for the second quarter of 2018.  These results include a positive MSR valuation adjustment of $1.5 million for the third quarter of 2018, compared with an immaterial MSR valuation adjustment for the third quarter of 2017 and a negative MSR valuation adjustment of $0.2 million for the second quarter of 2018.  Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.   

Excluding the MSR valuation adjustment, mortgage banking revenue was $5.0 million for the third quarter of 2018, compared with $7.0 million for the third quarter of 2017 and $7.1 million for the second quarter of 2018.  Mortgage origination volume for the third quarter of 2018 was $384.8 million, compared with $342.4 million for the third quarter of 2017 and $523.7 million for the second quarter of 2018.  Of the total mortgage origination volume for the third quarter of 2018, $95.4 million was portfolio loans, compared with $61.4 million for the third quarter of 2017 and $209.3 million for the second quarter of 2018.

Credit and debit card fee revenue was $9.9 million for the third quarter of 2018, compared with $9.3 million for the third quarter of 2017 and $10.5 million for the second quarter of 2018.  Deposit service charge revenue was $11.3 million for the third quarter of 2018, compared with $10.4 million for the third quarter of 2017 and $10.8 million for the second quarter of 2018.  Wealth management revenue was $6.0 million for the third quarter of 2018, compared with $5.4 million for the third quarter of 2017 and $5.7 million for the second quarter of 2018.  Other noninterest revenue was $6.3 million for the third quarter of 2018, compared with $5.3 million for the third quarter of 2017 and $5.5 million for the second quarter of 2018.

Insurance commission revenue was $31.7 million for the third quarter of 2018, compared with $28.6 million for the third quarter of 2017 and $33.0 million for the second 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 new guidance, the Company is required to estimate and accrue for contingent commissions throughout the year.

 

Noninterest Expense

Noninterest expense for the third quarter of 2018 was $142.4 million, compared with $126.9 million for the third quarter of 2017 and $145.2 million for the second quarter of 2018.  Salaries and employee benefits expense was $89.6 million for the third quarter of 2018 compared with $80.5 million for the third quarter of 2017 and $91.5 million for the second quarter of 2018.  Occupancy expense was $11.7 million for the third quarter of 2018, compared with $10.3 million for the third quarter of 2017 and $11.1 million for the second quarter of 2018.  Other noninterest expense was $34.1 million for the third quarter of 2018, compared with $30.2 million for the third quarter of 2017 and $35.7 million for the second quarter of 2018.  Additionally, merger-related expense for the third quarter of 2018 was $0.9 million, compared with no merger-related expense for the third quarter of 2017 and $1.9 million for the second quarter of 2018.  Income tax expense for the third quarter of 2018 included a one-time tax benefit of $11.3 million as a result of a voluntary contribution to the Company's pension plan as well as a tax accounting method change related to the recognition of certain software development costs.  Income tax expense for the second quarter of 2018 was reduced by the tax benefit of the vesting of restricted stock during the quarter.

Capital Management

The Company's equity capitalization is comprised entirely of common stock.  The Company's ratio of shareholders' equity to assets was 12.27 percent at September 30, 2018, compared with 11.52 percent at September 30, 2017 and 12.03 percent at June 30, 2018.  The ratio of tangible shareholders' equity to tangible assets was 8.96 percent at September 30, 2018, compared with 9.56 percent at September 30, 2017 and 8.71 percent at June 30, 2018.

During the third quarter of 2018, the Company repurchased 166,721 shares of its outstanding common stock at a weighted average price of $33.38 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 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.  As of September 30, 2018, the Company had 2,973,416 remaining shares available for repurchase under its current share repurchase authorization, which expires on December 31, 2019.  

Estimated regulatory capital ratios at September 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 September 30, 2018, with Tier 1 risk-based capital of 11.72 percent and total risk-based capital of 12.61 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 remainder of the year and beyond, we will continue to focus on our initiatives of balance sheet growth, both organically and through strategic opportunities, strong credit quality, and diligent expense management.  We continue to emphasize to our bankers the importance of developing and mining customer relationships that can contribute growth to both sides of the balance sheet.  In addition to our growth efforts, we have also steadily increased our dividend and utilized our share repurchase program in an effort to maximize returns for our shareholders."

TRANSACTIONS

Icon Capital Corporation

Effective October 1, 2018, the Company completed the merger with Icon Capital Corporation and its wholly owned subsidiary, Icon Bank of Texas, National Association (collectively referred to as "Icon"), pursuant to which Icon was merged with and into the Company.  Icon was headquartered in Houston, Texas and operated 7 full-service banking offices in the Houston, Texas metropolitan area.  As of October 1, 2018, Icon, on a consolidated basis, reported total assets of $760.4 million, total loans of $650.4 million and total deposits of $675.8 million.  Under the terms of the definitive agreement, the Company issued 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.  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 October 1, 2018. 

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 third quarter 2018 financial results on October 18, 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 $18 billion in assets.  BancorpSouth operates approximately 285 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 and the Icon, CCC and OIB mergers on the Company, the acceptance by customers of Icon, OIB and CCC of the Company's products and services after the closing of the mergers, 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 Icon, CCC and OIB mergers, the possibility that any of the anticipated benefits, costs, synergies and financial and operational improvements of the Reorganization and the Icon, OIB and CCC mergers will not be realized or will not be realized as expected, the possibility that the Icon merger integration may be more expensive to complete than anticipated, the lack of availability of the Company'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

Year to Date

Year to Date

 

9/30/2018

6/30/2018

3/31/2018

12/31/2017

9/30/2017

9/30/2018

9/30/2017

Earnings Summary:

             

Interest revenue

$                    163,158

$                    159,290

$                    152,195

$                    132,276

$                    130,934

$            474,643

$            380,715

Interest expense

21,023

17,162

14,117

10,890

10,373

52,302

28,065

Net interest revenue

142,135

142,128

138,078

121,386

120,561

422,341

352,650

Provision for credit losses

-

2,500

1,000

500

500

3,500

2,500

Net interest revenue, after provision

             

   for credit losses

142,135

139,628

137,078

120,886

120,061

418,841

350,150

Noninterest revenue

71,616

72,456

78,934

63,074

65,960

223,006

204,959

Noninterest expense

142,409

145,182

147,701

125,881

126,903

435,292

381,565

Income before income taxes

71,342

66,902

68,311

58,079

59,118

206,555

173,544

Income tax expense

4,659

12,856

14,820

20,556

19,590

32,335

58,034

Net income

$                      66,683

$                      54,046

$                      53,491

$                      37,523

$                      39,528

$            174,220

$            115,510

               

Balance Sheet - Period End Balances

             

Total assets

$               17,249,175

$               17,222,491

$               17,185,772

$               15,298,518

$               14,760,394

$       17,249,175

$       14,760,394

Total earning assets

15,594,549

15,600,037

15,593,366

14,081,818

13,606,145

15,594,549

13,606,145

Total securities

2,826,359

2,828,754

2,989,767

2,798,542

2,326,900

2,826,359

2,326,900

Loans and leases, net of unearned income

12,449,995

12,418,114

12,296,849

11,056,434

11,055,509

12,449,995

11,055,509

Allowance for credit losses

121,019

119,920

119,434

118,200

119,496

121,019

119,496

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

835,939

926,996

1,076,208

-

-

835,939

-

Remaining loan mark on acquired loans

13,368

14,485

19,330

-

-

13,368

-

Total deposits

13,347,193

13,476,558

13,894,301

11,915,596

11,775,988

13,347,193

11,775,988

Long-term debt

33,182

33,214

32,963

30,000

30,000

33,182

30,000

Total shareholders' equity

2,116,375

2,072,083

2,060,487

1,713,485

1,700,502

2,116,375

1,700,502

               

Balance Sheet - Average Balances

             

Total assets

$               17,059,865

$               17,094,283

$               16,918,568

$               14,809,497

$               14,710,245

$       17,024,756

$       14,760,991

Total earning assets

15,465,260

15,496,007

15,374,336

13,678,542

13,591,124

15,445,534

13,647,261

Total securities

2,814,751

2,906,235

2,966,917

2,414,140

2,334,717

2,895,410

2,424,067

Loans and leases, net of unearned income

12,433,701

12,334,756

12,084,020

11,010,187

11,013,270

12,285,440

10,906,326

Total deposits

13,387,849

13,539,324

13,563,510

11,840,049

11,802,682

13,496,251

11,881,806

Long-term debt

33,196

33,147

34,433

30,000

162,609

33,588

362,234

Total shareholders' equity

2,089,746

2,051,452

2,012,639

1,701,228

1,695,899

2,051,561

1,702,496

               

Nonperforming Assets:

             

Non-accrual loans and leases

$                      55,532

$                      60,045

$                      65,303

$                      61,891

$                      55,796

$              55,532

$              55,796

Loans and leases 90+ days past due, still accruing

2,934

6,335

6,519

8,503

1,855

2,934

1,855

Restructured loans and leases, still accruing

7,564

6,982

9,681

8,060

7,366

7,564

7,366

Non-performing loans (NPLs)

66,030

73,362

81,503

78,454

65,017

66,030

65,017

Other real estate owned

4,301

7,828

9,362

6,038

5,956

4,301

5,956

Non-performing assets (NPAs)

$                      70,331

$                      81,190

$                      90,865

$                      84,492

$                      70,973

$              70,331

$              70,973

               

Financial Ratios and Other Data:

             

Return on average assets

1.55%

1.27%

1.28%

1.01%

1.07%

1.37%

1.05%

Operating return on average assets-excluding MSR*

1.28%

1.31%

1.29%

0.99%

1.07%

1.29%

1.04%

Return on average shareholders' equity

12.66%

10.57%

10.78%

8.75%

9.25%

11.35%

9.07%

Operating return on average shareholders' equity-excluding MSR*

10.45%

10.88%

10.80%

8.58%

9.25%

10.71%

9.05%

Return on tangible equity*

17.76%

15.00%

15.08%

10.67%

11.36%

15.64%

11.18%

Operating return on tangible equity-excluding MSR*

14.66%

15.44%

15.11%

10.46%

11.36%

14.75%

11.16%

Noninterest income to average assets

1.67%

1.70%

1.89%

1.69%

1.78%

1.75%

1.86%

Noninterest expense to average assets

3.31%

3.41%

3.54%

3.37%

3.42%

3.42%

3.46%

Net interest margin-fully taxable equivalent

3.67%

3.71%

3.67%

3.58%

3.58%

3.68%

3.52%

Net interest margin-fully taxable equivalent, excluding net accretion

             

  on acquired loans and leases

3.62%

3.63%

3.60%

N/A

N/A

3.62%

N/A

Net interest rate spread

3.43%

3.52%

3.52%

3.44%

3.45%

3.49%

3.40%

Efficiency ratio (tax equivalent)*

66.29%

67.31%

67.66%

67.45%

67.23%

67.11%

67.61%

Operating efficiency ratio-excluding MSR (tax equivalent)*

66.34%

66.36%

66.79%

68.16%

67.24%

66.52%

67.66%

Loan/deposit ratio

93.28%

92.15%

88.50%

92.79%

93.88%

93.28%

93.88%

Price to earnings multiple (avg)

15.07

17.07

17.77

18.95

19.42

15.07

19.42

Market value to book value

152.23%

156.95%

153.77%

165.76%

170.25%

152.23%

170.25%

Market value to book value (avg)

158.19%

159.33%

159.14%

169.35%

158.92%

155.72%

160.35%

Market value to tangible book value

216.28%

225.06%

220.18%

203.64%

209.66%

216.28%

209.66%

Market value to tangible book value (avg)

224.75%

228.47%

227.87%

208.04%

195.70%

221.24%

197.47%

Employee FTE

4,270

4,366

4,305

3,947

3,950

4,270

3,950

               

*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

 

Year to Date

Year to Date

 

9/30/2018

6/30/2018

3/31/2018

12/31/2017

9/30/2017

9/30/2018

9/30/2017

Credit Quality Ratios:

             

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

(0.04%)

0.07%

(0.01%)

0.06%

0.09%

0.01%

0.08%

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

0.00%

0.08%

0.03%

0.02%

0.02%

0.04%

0.03%

Allowance for credit losses to net loans and leases

0.97%

0.97%

0.97%

1.07%

1.08%

0.97%

1.08%

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

1.04%

1.05%

1.07%

N/A

N/A

1.04%

N/A

Allowance for credit losses to non-performing loans and leases

183.28%

163.46%

146.54%

150.66%

183.79%

183.28%

183.79%

Allowance for credit losses to non-performing assets

172.07%

147.70%

131.44%

139.89%

168.37%

172.07%

168.37%

Non-performing loans and leases to net loans and leases

0.53%

0.59%

0.66%

0.71%

0.59%

0.53%

0.59%

Non-performing assets to net loans and leases

0.56%

0.65%

0.74%

0.76%

0.64%

0.56%

0.64%

               

Equity Ratios:

             

Total shareholders' equity to total assets

12.27%

12.03%

11.99%

11.20%

11.52%

12.27%

11.52%

Tangible shareholders' equity to tangible assets*

8.96%

8.71%

8.69%

9.31%

9.56%

8.96%

9.56%

               
               

Capital Adequacy:

             

Common  Equity Tier 1 capital

11.72%

11.42%

11.30%

12.15%

12.04%

11.72%

12.04%

Tier 1 capital

11.72%

11.42%

11.30%

12.15%

12.04%

11.72%

12.04%

Total capital

12.61%

12.30%

12.18%

13.13%

13.03%

12.61%

13.03%

Tier 1 leverage capital

9.69%

9.38%

9.39%

10.12%

10.02%

9.69%

10.02%

   Estimated for current quarter

             
               

Common Share Data:

             

Basic earnings per share

$                          0.68

$                          0.55

$                          0.54

$                          0.42

$                          0.43

$                  1.76

$                  1.26

Diluted earnings per share

0.67

0.55

0.54

0.41

0.43

1.76

1.25

Operating earnings per share*

0.57

0.56

0.58

0.42

0.43

1.72

1.25

Operating earnings per share- excluding MSR*

0.56

0.56

0.54

0.41

0.43

1.67

1.25

Cash dividends per share

0.17

0.14

0.14

0.14

0.14

0.45

0.39

Book value per share

21.48

20.99

20.68

18.97

18.83

21.48

18.83

Tangible book value per share*

15.12

14.64

14.44

15.44

15.29

15.12

15.29

Market value per share (last)

32.70

32.95

31.80

31.45

32.05

32.70

32.05

Market value per share (high)

35.40

35.45

35.55

34.45

32.70

35.55

32.70

Market value per share (low)

32.45

30.60

30.90

30.25

27.20

30.60

27.20

Market value per share (avg)

33.98

33.45

32.91

32.13

29.92

33.45

30.19

Dividend payout ratio

25.15%

25.62%

25.85%

33.70%

32.20%

25.51%

31.05%

Total shares outstanding

98,525,516

98,700,509

99,636,779

90,312,378

90,329,896

98,525,516

90,329,896

Average shares outstanding - basic

98,646,087

98,906,619

98,765,789

90,321,137

90,911,702

98,772,832

91,973,620

Average shares outstanding - diluted

98,819,905

99,057,054

98,942,268

90,546,824

91,099,770

98,939,743

92,157,392

               
               

Yield/Rate:

             

(Taxable equivalent basis)

             

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

4.72%

4.67%

4.60%

4.36%

4.33%

4.66%

4.27%

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

             

  net accretion on acquired loans and leases

4.64%

4.57%

4.51%

N/A

N/A

4.58%

N/A

Available-for-sale securities:

             

  Taxable

1.80%

1.77%

1.72%

1.48%

1.41%

1.76%

1.38%

  Tax-exempt

4.40%

4.39%

4.30%

5.29%

5.25%

4.36%

5.26%

Short-term, FHLB and other equity investments

2.04%

2.02%

1.54%

1.27%

1.22%

1.78%

0.84%

  Total interest earning assets and revenue

4.21%

4.15%

4.05%

3.90%

3.89%

4.14%

3.80%

Deposits

0.43%

0.34%

0.31%

0.27%

0.26%

0.36%

0.25%

  Demand - interest bearing

0.59%

0.43%

0.36%

0.29%

0.28%

0.46%

0.25%

  Savings

0.24%

0.15%

0.13%

0.13%

0.12%

0.17%

0.12%

  Other time

1.06%

0.95%

0.89%

0.86%

0.84%

0.97%

0.81%

Short-term borrowings

1.79%

1.62%

1.25%

0.96%

0.85%

1.58%

0.68%

Total interest bearing deposits and short-term borrowings

0.77%

0.62%

0.51%

0.45%

0.41%

0.64%

0.37%

Junior subordinated debt

N/A

N/A

0.00%

N/A

N/A

N/A

3.29%

Long-term debt

4.06%

4.11%

4.17%

4.05%

1.79%

4.11%

1.06%

  Total interest bearing liabilities and expense

0.78%

0.63%

0.53%

0.46%

0.44%

0.65%

0.39%

Interest bearing liabilities to interest earning assets

69.12%

70.27%

70.91%

69.09%

69.55%

70.09%

69.82%

Net interest tax equivalent adjustment

$                        1,088

$                        1,119

$                        1,205

$                        2,155

$                        2,237

$                3,302

$                6,742

               

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

 

 

 

           

BancorpSouth Bank

Consolidated Balance Sheets

(Unaudited)

           
 

Sep-18

Jun-18

Mar-18

Dec-17

Sep-17

 

(Dollars in thousands)

Assets

         

Cash and due from banks

$                169,493

$                198,374

$                180,104

$                167,283

$                167,871

Interest bearing deposits with other banks

         

and Federal funds sold

138,677

152,566

127,345

53,440

52,316

Available-for-sale securities, at fair value

2,826,359

2,828,754

2,989,767

2,798,542

2,326,900

Loans and leases

12,464,877

12,433,152

12,312,346

11,072,062

11,073,306

  Less:  Unearned income

14,882

15,038

15,497

15,628

17,797

             Allowance for credit losses

121,019

119,920

119,434

118,200

119,496

Net loans and leases

12,328,976

12,298,194

12,177,415

10,938,234

10,936,013

Loans held for sale

132,080

153,396

141,979

136,577

138,353

Premises and equipment, net

342,947

339,372

342,353

314,362

311,530

Accrued interest receivable

56,369

51,921

52,856

45,671

44,454

Goodwill

590,292

588,004

580,900

300,798

300,798

Other identifiable intangibles

36,475

39,031

40,590

17,882

18,860

Bank owned life insurance

304,687

306,116

304,850

292,069

259,361

Other real estate owned

4,301

7,828

9,362

6,038

5,956

Other assets

318,519

258,935

238,251

227,622

197,982

Total Assets

$           17,249,175

$           17,222,491

$           17,185,772

$           15,298,518

$           14,760,394

Liabilities

         

Deposits:

         

  Demand:  Noninterest bearing

$             4,007,158

$             4,135,322

$             4,035,830

$             3,453,000

$             3,414,397

                  Interest bearing

5,535,689

5,509,901

5,945,359

5,066,614

4,925,127

  Savings

1,783,602

1,810,149

1,843,264

1,638,799

1,638,033

  Other time

2,020,744

2,021,186

2,069,848

1,757,183

1,798,431

Total deposits

13,347,193

13,476,558

13,894,301

11,915,596

11,775,988

Securities sold under agreement to repurchase

403,724

407,704

469,114

417,867

421,044

Federal funds purchased

         

   and other short-term borrowing

1,095,000

1,025,022

500,000

1,025,000

625,000

Accrued interest payable

7,330

5,961

5,525

4,882

4,826

Long-term debt

33,182

33,214

32,963

30,000

30,000

Other liabilities

246,371

201,949

223,382

191,688

203,034

Total Liabilities

15,132,800

15,150,408

15,125,285

13,585,033

13,059,892

Shareholders' Equity

         

Common stock

246,314

246,751

249,092

225,781

225,825

Capital surplus

439,590

441,950

465,699

177,624

175,837

Accumulated other comprehensive loss

(91,650)

(88,751)

(85,994)

(63,843)

(50,203)

Retained earnings

1,522,121

1,472,133

1,431,690

1,373,923

1,349,043

Total Shareholders' Equity

2,116,375

2,072,083

2,060,487

1,713,485

1,700,502

Total Liabilities & Shareholders' Equity

$           17,249,175

$           17,222,491

$           17,185,772

$           15,298,518

$           14,760,394

           
           
           

 

 

 

           

BancorpSouth Bank

Consolidated Average Balance Sheets

(Unaudited)

           
 

Sep-18

Jun-18

Mar-18

Dec-17

Sep-17

 

(Dollars in thousands)

Assets

         

Cash and due from banks

$                179,098

$                203,220

$                202,141

$                154,843

$                153,797

Interest bearing deposits with other banks

         

and Federal funds sold

57,204

66,035

182,488

108,880

83,109

Available-for-sale securities, at fair value

2,814,751

2,906,235

2,966,917

2,414,140

2,334,717

Loans and leases

12,448,814

12,350,226

12,099,694

11,026,437

11,032,159

  Less:  Unearned income

15,113

15,470

15,674

16,250

18,889

             Allowance for credit losses

120,678

119,622

118,840

119,124

121,501

Net loans and leases

12,313,023

12,215,134

11,965,180

10,891,063

10,891,769

Loans held for sale

112,387

144,400

98,662

112,118

127,112

Premises and equipment, net

340,456

342,395

343,098

313,874

309,592

Accrued interest receivable

50,437

48,767

47,770

40,228

40,100

Goodwill

588,777

583,188

544,840

300,798

300,798

Other identifiable intangibles

37,529

39,752

17,811

18,231

19,222

Bank owned life insurance

305,476

305,016

301,982

265,761

261,100

Other real estate owned

6,245

8,997

9,300

5,777

6,985

Other assets

254,482

231,144

238,379

183,784

181,944

Total Assets

$           17,059,865

$           17,094,283

$           16,918,568

$           14,809,497

$           14,710,245

Liabilities

         

Deposits:

         

  Demand:  Noninterest bearing

$             4,076,890

$             3,976,039

$             3,822,216

$             3,479,771

$             3,369,468

                  Interest bearing

5,495,517

5,697,444

5,898,269

4,949,183

4,985,113

  Savings

1,794,229

1,820,013

1,801,128

1,631,617

1,634,577

  Other time

2,021,213

2,045,828

2,041,897

1,779,478

1,813,524

Total deposits

13,387,849

13,539,324

13,563,510

11,840,049

11,802,682

Securities sold under agreement to repurchase

427,583

416,839

445,840

471,581

444,999

Federal funds purchased

         

   and other short-term borrowing

918,153

875,641

667,546

589,261

411,815

Accrued interest payable

6,617

5,600

5,177

4,718

4,507

Long-term debt

33,196

33,147

34,433

30,000

162,609

Other liabilities

196,721

172,280

189,423

172,660

187,734

Total Liabilities

14,970,119

15,042,831

14,905,929

13,108,269

13,014,346

Shareholders' Equity

         

Common stock

246,635

247,120

247,189

225,808

227,247

Capital surplus

441,779

444,379

447,576

176,613

189,545

Accumulated other comprehensive loss

(89,244)

(88,962)

(71,205)

(55,181)

(48,591)

Retained earnings

1,490,576

1,448,915

1,389,079

1,353,988

1,327,698

Total Shareholders' Equity

2,089,746

2,051,452

2,012,639

1,701,228

1,695,899

Total Liabilities & Shareholders' Equity

$           17,059,865

$           17,094,283

$           16,918,568

$           14,809,497

$           14,710,245

           
           
           

 

 

 

BancorpSouth Bank

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

                           
 

Quarter Ended

 

Year to Date

 

Sep-18

 

Jun-18

 

Mar-18

 

Dec-17

 

Sep-17

 

Sep-18

 

Sep-17

INTEREST REVENUE:

                         

Loans and leases

$  147,404

 

$  143,029

 

$   136,568

 

$  120,381

 

$  119,599

 

$ 427,001

 

$ 346,383

Deposits with other banks

243

 

331

 

664

 

300

 

214

 

1,238

 

955

Federal funds sold, securities purchased

                         

   under agreement to resell, FHLB and 

                         

      other equity investments

295

 

226

 

191

 

157

 

143

 

712

 

361

Available-for-sale securities:

                         

    Taxable

11,529

 

11,554

 

11,313

 

7,957

 

7,235

 

34,396

 

21,876

    Tax-exempt

2,394

 

2,435

 

2,504

 

2,417

 

2,514

 

7,333

 

7,657

Loans held for sale

1,293

 

1,715

 

955

 

1,064

 

1,229

 

3,963

 

3,483

        Total interest revenue

163,158

 

159,290

 

152,195

 

132,276

 

130,934

 

474,643

 

380,715

                           

INTEREST EXPENSE:

                         

Interest bearing demand

8,113

 

6,075

 

5,278

 

3,645

 

3,482

 

19,466

 

9,472

Savings

1,087

 

667

 

584

 

517

 

494

 

2,338

 

1,449

Other time

5,399

 

4,862

 

4,457

 

3,853

 

3,819

 

14,718

 

11,126

Federal funds purchased and securities sold

                         

   under agreement to repurchase

2,071

 

1,898

 

1,341

 

930

 

754

 

5,310

 

1,585

Short-term and long-term debt

4,353

 

3,660

 

2,455

 

1,943

 

1,824

 

10,468

 

4,422

Junior subordinated debt

-

 

-

 

-

 

-

 

-

 

-

 

9

Other

-

 

-

 

2

 

2

 

-

 

2

 

2

        Total interest expense

21,023

 

17,162

 

14,117

 

10,890

 

10,373

 

52,302

 

28,065

                           

        Net interest revenue

142,135

 

142,128

 

138,078

 

121,386

 

120,561

 

422,341

 

352,650

  Provision for credit losses

-

 

2,500

 

1,000

 

500

 

500

 

3,500

 

2,500

        Net interest revenue, after provision for

                         

          credit losses

142,135

 

139,628

 

137,078

 

120,886

 

120,061

 

418,841

 

350,150

                           

NONINTEREST REVENUE:

                         

Mortgage banking

6,517

 

6,904

 

13,265

 

7,246

 

6,909

 

26,686

 

22,033

Credit card, debit card and merchant fees

9,857

 

10,530

 

9,564

 

9,530

 

9,346

 

29,951

 

27,814

Deposit service charges

11,278

 

10,767

 

10,901

 

10,257

 

10,388

 

32,946

 

29,783

Security gains, net

(54)

 

(2)

 

27

 

523

 

5

 

(29)

 

1,099

Insurance commissions

31,705

 

32,965

 

29,130

 

25,758

 

28,616

 

93,800

 

92,682

Wealth management

6,016

 

5,745

 

5,697

 

5,619

 

5,386

 

17,458

 

15,835

Other

6,297

 

5,547

 

10,350

 

4,141

 

5,310

 

22,194

 

15,713

        Total noninterest revenue

71,616

 

72,456

 

78,934

 

63,074

 

65,960

 

223,006

 

204,959

                           

NONINTEREST EXPENSE:

                         

Salaries and employee benefits

89,646

 

91,451

 

91,197

 

77,268

 

80,541

 

272,294

 

241,776

Occupancy, net of rental income

11,690

 

11,103

 

10,804

 

10,064

 

10,343

 

33,597

 

31,100

Equipment

3,994

 

3,804

 

3,754

 

3,710

 

3,352

 

11,552

 

10,358

Deposit insurance assessments

2,954

 

3,129

 

2,360

 

2,659

 

2,499

 

8,443

 

7,244

Other

34,125

 

35,695

 

39,586

 

32,180

 

30,168

 

109,406

 

91,087

        Total noninterest expense

142,409

 

145,182

 

147,701

 

125,881

 

126,903

 

435,292

 

381,565

        Income before income taxes

71,342

 

66,902

 

68,311

 

58,079

 

59,118

 

206,555

 

173,544

Income tax expense

4,659

 

12,856

 

14,820

 

20,556

 

19,590

 

32,335

 

58,034

        Net income

$    66,683

 

$   54,046

 

$     53,491

 

$    37,523

 

$   39,528

 

$ 174,220

 

$ 115,510

                           

Net income per share: Basic

$       0.68

 

$       0.55

 

$        0.54

 

$       0.42

 

$       0.43

 

$      1.76

 

$      1.26

                                  Diluted

$       0.67

 

$       0.55

 

$        0.54

 

$       0.41

 

$       0.43

 

$      1.76

 

$      1.25

 

 

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

                   
 

Quarter Ended

 

Sep-18

 

Jun-18

 

Mar-18

 

Dec-17

 

Sep-17

LOAN AND LEASE PORTFOLIO:

                 

Commercial and industrial

$  1,617,293

 

$   1,668,174

 

$   1,695,718

 

$    1,480,279

 

$  1,506,352

Real estate

                 

   Consumer mortgages

3,184,674

 

3,143,215

 

3,000,479

 

2,864,623

 

2,826,333

   Home equity

655,213

 

653,450

 

655,634

 

638,394

 

626,961

   Agricultural

315,842

 

315,828

 

313,470

 

243,449

 

247,211

   Commercial and industrial-owner occupied

2,157,177

 

2,147,176

 

2,102,493

 

1,846,085

 

1,835,430

   Construction, acquisition and development

1,103,532

 

1,346,370

 

1,377,153

 

1,153,187

 

1,175,979

   Commercial real estate

2,923,791

 

2,636,533

 

2,640,503

 

2,345,231

 

2,336,219

Credit cards

102,353

 

102,790

 

102,114

 

107,848

 

104,613

All other

390,120

 

404,578

 

409,285

 

377,338

 

396,411

     Total loans

$ 12,449,995

 

$ 12,418,114

 

$ 12,296,849

 

$  11,056,434

 

$ 11,055,509

                   

ALLOWANCE FOR CREDIT LOSSES:

                 

Balance, beginning of period

$     119,920

 

$      119,434

 

$     118,200

 

$       119,496

 

$     121,561

                   

Loans and leases charged-off:

                 

Commercial and industrial

(322)

 

(1,057)

 

(484)

 

(1,234)

 

(1,963)

Real estate

                 

   Consumer mortgages

(210)

 

(366)

 

(134)

 

(773)

 

(1,193)

   Home equity

(227)

 

(107)

 

(143)

 

(95)

 

(439)

   Agricultural

(6)

 

(6)

 

(12)

 

(5)

 

(54)

   Commercial and industrial-owner occupied

(315)

 

(279)

 

(41)

 

(720)

 

(20)

   Construction, acquisition and development

(41)

 

(66)

 

(163)

 

(206)

 

(29)

   Commercial real estate

0

 

(946)

 

(35)

 

(159)

 

(49)

Credit cards

(596)

 

(830)

 

(794)

 

(849)

 

(745)

All other

(941)

 

(551)

 

(725)

 

(627)

 

(711)

     Total loans charged-off

(2,658)

 

(4,208)

 

(2,531)

 

(4,668)

 

(5,203)

                   

Recoveries:

                 

Commercial and industrial

1,558

 

684

 

372

 

599

 

481

Real estate

                 

   Consumer mortgages

522

 

361

 

95

 

755

 

642

   Home equity

58

 

72

 

333

 

69

 

378

   Agricultural

20

 

10

 

79

 

7

 

77

   Commercial and industrial-owner occupied

413

 

46

 

80

 

391

 

285

   Construction, acquisition and development

564

 

308

 

1,262

 

483

 

260

   Commercial real estate

200

 

149

 

53

 

98

 

151

Credit cards

198

 

367

 

220

 

218

 

177

All other

224

 

197

 

271

 

252

 

187

     Total recoveries

3,757

 

2,194

 

2,765

 

2,872

 

2,638

                   

Net recoveries (charge-offs)

1,099

 

(2,014)

 

234

 

(1,796)

 

(2,565)

                   

Provision charged to operating expense

-

 

2,500

 

1,000

 

500

 

500

Balance, end of period

$     121,019

 

$      119,920

 

$     119,434

 

$       118,200

 

$     119,496

                   

Average loans for period

$ 12,433,701

 

$ 12,334,756

 

$ 12,084,020

 

$ 11,010,187

 

$ 11,013,270

                   

Ratio:

                 

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

(0.04%)

 

0.07%

 

(0.01%)

 

0.06%

 

0.09%

 

 

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

                   
 

Quarter Ended

 

Sep-18

 

Jun-18

 

Mar-18

 

Dec-17

 

Sep-17

NON-PERFORMING ASSETS

                 

NON-PERFORMING LOANS AND LEASES:

                 

  Nonaccrual Loans and Leases

                 

    Commercial and industrial

$    11,158

 

$       11,090

 

$       11,122

 

$    10,178

 

$         8,776

    Real estate

                 

       Consumer mortgages

23,015

 

22,588

 

26,832

 

22,988

 

23,635

       Home equity

2,349

 

2,446

 

2,587

 

2,956

 

2,555

       Agricultural

1,603

 

1,536

 

6,225

 

6,160

 

5,919

       Commercial and industrial-owner occupied

7,927

 

12,275

 

12,210

 

12,585

 

7,558

       Construction, acquisition and development

1,410

 

1,563

 

2,223

 

2,197

 

1,771

       Commercial real estate

7,787

 

8,265

 

3,597

 

4,318

 

4,645

    Credit cards

120

 

104

 

136

 

74

 

126

    All other

163

 

178

 

371

 

435

 

811

         Total nonaccrual loans and leases

$    55,532

 

$       60,045

 

$       65,303

 

$    61,891

 

$       55,796

                   

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

2,934

 

6,335

 

6,519

 

8,503

 

1,855

  Restructured Loans and Leases, Still Accruing

7,564

 

6,982

 

9,681

 

8,060

 

7,366

     Total non-performing loans and leases

$    66,030

 

$       73,362

 

$       81,503

 

$    78,454

 

$       65,017

                   

OTHER REAL ESTATE OWNED:

4,301

 

7,828

 

9,362

 

6,038

 

5,956

                   

Total Non-performing Assets

$    70,331

 

$       81,190

 

$       90,865

 

$    84,492

 

$       70,973

                   

Additions to Nonaccrual Loans and Leases During the Quarter

$    12,217

 

$       16,902

 

$       16,641

 

$    20,799

 

$       16,975

                   

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

                 

    Commercial and industrial

$      5,843

 

$         7,540

 

$         5,020

 

$      1,990

 

$         3,791

    Real estate

                 

       Consumer mortgages

17,858

 

16,242

 

17,076

 

15,080

 

18,603

       Home equity

2,533

 

2,231

 

1,768

 

1,858

 

2,042

       Agricultural

719

 

6,415

 

295

 

191

 

476

       Commercial and industrial-owner occupied

5,805

 

2,338

 

4,356

 

1,655

 

4,453

       Construction, acquisition and development

4,043

 

1,240

 

2,215

 

1,386

 

4,464

       Commercial real estate

5,732

 

816

 

679

 

1,200

 

1,206

    Credit cards

700

 

778

 

705

 

851

 

720

    All other

1,154

 

1,435

 

733

 

951

 

699

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

$    44,387

 

$       39,035

 

$       32,847

 

$    25,162

 

$       36,454

                   

Credit Quality Ratios:

                 

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

0.00%

 

0.08%

 

0.03%

 

0.02%

 

0.02%

Allowance for credit losses to net loans and leases

0.97%

 

0.97%

 

0.97%

 

1.07%

 

1.08%

Allowance for credit losses to non-performing loans and leases

183.28%

 

163.46%

 

146.54%

 

150.66%

 

183.79%

Allowance for credit losses to non-performing assets

172.07%

 

147.70%

 

131.44%

 

139.89%

 

168.37%

Non-performing loans and leases to net loans and leases

0.53%

 

0.59%

 

0.66%

 

0.71%

 

0.59%

Non-performing assets to net loans and leases

0.56%

 

0.65%

 

0.74%

 

0.76%

 

0.64%

 

 

 

BancorpSouth Bank

       

Selected Loan Data

       

(Dollars in thousands)

       

(Unaudited)

       
                   
 

September 30, 2018

   

Special

       

Purchased

   
 

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Credit Impaired

 

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

                 

Commercial and industrial

$   1,559,723

$                -

$       52,855

$        802

$                -

$    3,912

$                1

 

$   1,617,293

Real estate

                 

   Consumer mortgages

3,127,420

-

53,310

384

-

3,560

-

 

3,184,674

   Home equity

648,216

-

6,767

-

-

230

-

 

655,213

   Agricultural

302,645

-

9,775

-

-

228

3,194

 

315,842

   Commercial and industrial-owner occupied

2,094,604

-

56,949

-

-

3,715

1,909

 

2,157,177

   Construction, acquisition and development

1,083,200

1,000

19,328

-

-

-

4

 

1,103,532

   Commercial real estate

2,864,040

-

53,870

-

-

5,881

-

 

2,923,791

Credit cards

102,353

-

-

-

-

-

-

 

102,353

All other

379,358

-

10,762

-

-

-

-

 

390,120

     Total loans

$ 12,161,559

$         1,000

$      263,616

$      1,186

$                -

$  17,526

$          5,108

 

$ 12,449,995

                   
                   
 

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

 

 

 

BancorpSouth Bank

Geographical Information

(Dollars in thousands)

(Unaudited)

                   
 

September 30, 2018

 

Alabama

               
 

and Florida

               
 

Panhandle

Arkansas

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:

                 

Commercial and industrial

107,865

155,714

278,962

550,050

65,369

100,378

290,400

68,555

$   1,617,293

Real estate

                 

   Consumer mortgages

453,241

343,766

331,192

889,660

100,079

334,383

667,888

64,465

3,184,674

   Home equity

97,712

48,273

89,971

233,768

19,865

143,152

20,883

1,589

655,213

   Agricultural

9,109

84,786

38,609

72,579

5,960

11,987

92,812

-

315,842

   Commercial and industrial-owner occupied

205,956

212,397

339,004

754,134

48,079

148,540

449,067

-

2,157,177

   Construction, acquisition and development

107,368

58,244

87,277

288,088

14,107

177,855

370,593

-

1,103,532

   Commercial real estate

312,472

362,311

375,990

598,430

212,742

213,428

848,418

-

2,923,791

Credit cards

-

-

-

-

-

-

-

102,353

102,353

All other

44,148

40,173

27,232

181,216

2,671

19,974

68,742

5,964

390,120

     Total loans

$ 1,337,871

$ 1,305,664

$ 1,568,237

$ 3,567,925

$    468,872

$ 1,149,697

$ 2,808,803

$    242,926

$ 12,449,995

                   

NON-PERFORMING LOANS AND LEASES:

                 

Commercial and industrial

160

390

1,316

3,266

2,617

978

3,281

112

$       12,120

Real estate

                 

   Consumer mortgages

1,084

3,166

5,152

11,392

352

2,574

3,173

249

27,142

   Home equity

382

184

790

691

30

307

49

-

2,433

   Agricultural

50

640

5

398

-

-

525

-

1,618

   Commercial and industrial-owner occupied

39

1,141

1,589

3,823

143

972

2,789

-

10,496

   Construction, acquisition and development

37

641

87

789

-

-

17

-

1,571

   Commercial real estate

153

462

6,719

1,634

-

100

-

-

9,068

Credit cards

-

-

-

-

-

-

-

1,257

1,257

All other

-

18

1

149

-

142

15

-

325

     Total loans

$       1,905

$       6,642

$      15,659

$     22,142

$       3,142

$       5,073

$       9,849

$       1,618

$       66,030

                   

NON-PERFORMING LOANS AND LEASES

                 

   AS A PERCENTAGE OF OUTSTANDING:

                 

Commercial and industrial

0.15%

0.25%

0.47%

0.59%

4.00%

0.97%

1.13%

0.16%

0.75%

Real estate

                 

   Consumer mortgages

0.24%

0.92%

1.56%

1.28%

0.35%

0.77%

0.48%

0.39%

0.85%

   Home equity

0.39%

0.38%

0.88%

0.30%

0.15%

0.21%

0.23%

0.00%

0.37%

   Agricultural

0.55%

0.75%

0.01%

0.55%

0.00%

0.00%

0.57%

N/A

0.51%

   Commercial and industrial-owner occupied

0.02%

0.54%

0.47%

0.51%

0.30%

0.65%

0.62%

N/A

0.49%

   Construction, acquisition and development

0.03%

1.10%

0.10%

0.27%

0.00%

0.00%

0.00%

N/A

0.14%

   Commercial real estate

0.05%

0.13%

1.79%

0.27%

0.00%

0.05%

0.00%

N/A

0.31%

Credit cards

N/A

N/A

N/A

N/A

N/A

N/A

N/A

1.23%

1.23%

All other

0.00%

0.04%

0.00%

0.08%

0.00%

0.71%

0.02%

0.00%

0.08%

     Total loans

0.14%

0.51%

1.00%

0.62%

0.67%

0.44%

0.35%

0.67%

0.53%

 

 

 

BancorpSouth Bank

 

Acquired Loan Information

 

(Dollars in thousands)

 

(Unaudited)

 
         
         
 

Quarter Ended September 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

$              919,712

$                 6,220

$       925,932

 

Fair value of loans acquired during the period

-

-

-

 

Changes in acquired loans

(88,881)

(1,112)

(89,993)

 

Net book value of acquired loans at end of period

$              830,831

$                 5,108

$       835,939

 
         
         

Loan mark on acquired loans at beginning of period

$               (10,824)

$                (4,725)

$        (15,549)

 

Loan mark recorded on loans acquired during the period

-

-

-

 

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

-

482

482

 

Adjustment to accretable yield from excess recovery (for ASC 310-30 loans only)

-

(482)

(482)

 

Net accretion recognized on acquired loans

1,410

771

2,181

 

Remaining loan mark on acquired loans*

$                (9,414)

$                (3,954)

$        (13,368)

 
         
 

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

$            1,070,417

$                 5,865

$     1,076,282

 

Fair value of loans acquired during the period

-

-

-

 

Changes in acquired loans

(150,705)

355

(150,350)

 

Net book value of acquired loans at end of period

$              919,712

$                 6,220

$       925,932

 
         
         

Loan mark on acquired loans at beginning of period

$               (13,507)

$                (5,458)

$        (18,965)

 

Loan mark recorded on loans acquired during the period

-

-

-

 

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

 N/A 

408

408

 

Net accretion recognized on acquired loans

2,683

325

3,008

 

Remaining loan mark on acquired loans

$               (10,824)

$                (4,725)

$        (15,549)

 
         
         
 

Quarter Ended

Quarter Ended

Quarter Ended

 
 

9/30/2018

6/30/2018

3/31/2018

 

Loan yield, as reported

4.72%

4.67%

4.60%

 
         

Loan yield, excluding net accretion on acquired loans

4.64%

4.57%

4.51%

 
         

Net interest margin, as reported

3.67%

3.71%

3.67%

 
         

Net interest margin, excluding net accretion on acquired loans 

3.62%

3.63%

3.60%

 
         
         

Certain balances within the Acquired Loan Information have been adjusted for prior periods to reflect changes made to loans accounted for under ASC 310-30 during the measurement period. These changes may result in certain balances not agreeing to other prior period information presented within this press release.

         
         

* The remaining loan mark shown above for loans accounted for under ASC 310-30 includes $357 thousand in accretable yield as of September 30, 2018 compared to $424 thousand in accretable yield as of June 30, 2018. In addition, the same loans include $3.6 million in nonaccretable difference as of September 30, 2018 compared to $3.2 million as of June 30, 2018.

 

 

 

BancorpSouth Bank

       

Noninterest Revenue and Expense

       

(Dollars in thousands)

       

(Unaudited)

       
                           
 

Quarter Ended

 

Year to Date

 

Sep-18

 

Jun-18

 

Mar-18

 

Dec-17

 

Sep-17

 

Sep-18

 

Sep-17

NONINTEREST REVENUE:

                         

Mortgage banking excl. MSR and MSR Hedge market value adj

$      5,045

 

$         7,105

 

$         7,732

 

$      4,868

 

$         6,955

 

$  19,882

 

$  22,654

MSR and MSR Hedge market value adjustment

1,472

 

(201)

 

5,533

 

2,378

 

(46)

 

6,804

 

(621)

Credit card, debit card and merchant fees

9,857

 

10,530

 

9,564

 

9,530

 

9,346

 

29,951

 

27,814

Deposit service charges

11,278

 

10,767

 

10,901

 

10,257

 

10,388

 

32,946

 

29,783

Securities gains, net

(54)

 

(2)

 

27

 

523

 

5

 

(29)

 

1,099

Insurance commissions

31,705

 

32,965

 

29,130

 

25,758

 

28,616

 

93,800

 

92,682

Trust income

3,742

 

3,850

 

3,848

 

3,985

 

3,803

 

11,440

 

11,043

Annuity fees

276

 

357

 

297

 

216

 

246

 

930

 

859

Brokerage commissions and fees

1,998

 

1,538

 

1,552

 

1,418

 

1,337

 

5,088

 

3,933

Bank-owned life insurance

2,842

 

3,259

 

1,947

 

1,732

 

2,700

 

8,048

 

6,079

Other miscellaneous income

3,455

 

2,288

 

8,403

 

2,409

 

2,610

 

14,146

 

9,634

     Total noninterest revenue

$    71,616

 

$       72,456

 

$       78,934

 

$    63,074

 

$       65,960

 

$ 223,006

 

$ 204,959

                           

NONINTEREST EXPENSE:

                         

Salaries and employee benefits

$    89,646

 

$       91,451

 

$       91,197

 

$    77,268

 

$       80,541

 

$ 272,294

 

$ 241,776

Occupancy, net of rental income

11,690

 

11,103

 

10,804

 

10,064

 

10,343

 

33,597

 

31,100

Equipment

3,994

 

3,804

 

3,754

 

3,710

 

3,352

 

11,552

 

10,358

Deposit insurance assessments

2,954

 

3,129

 

2,360

 

2,659

 

2,499

 

8,443

 

7,244

Advertising

1,522

 

1,226

 

855

 

1,671

 

1,185

 

3,603

 

2,885

Foreclosed property expense

920

 

997

 

366

 

1,035

 

447

 

2,283

 

2,457

Telecommunications

1,318

 

1,327

 

1,217

 

1,219

 

1,192

 

3,862

 

3,572

Public relations

795

 

829

 

794

 

705

 

675

 

2,418

 

2,049

Data processing

8,113

 

7,970

 

7,360

 

6,855

 

6,942

 

23,443

 

20,795

Computer software

3,652

 

3,624

 

3,336

 

3,172

 

3,074

 

10,612

 

8,968

Amortization of intangibles

1,438

 

1,559

 

1,602

 

979

 

994

 

4,599

 

3,034

Legal

657

 

1,568

 

691

 

1,326

 

1,016

 

2,916

 

3,575

Merger expense

942

 

1,911

 

5,727

 

688

 

-

 

8,580

 

-

Postage and shipping

1,238

 

1,151

 

1,237

 

1,092

 

1,050

 

3,626

 

3,305

Other miscellaneous expense

13,530

 

13,533

 

16,401

 

13,438

 

13,593

 

43,464

 

40,447

     Total noninterest expense

$  142,409

 

$      145,182

 

$      147,701

 

$  125,881

 

$      126,903

 

$ 435,292

 

$ 381,565

                           

INSURANCE COMMISSIONS:

                         

Property and casualty commissions

$    21,907

 

$       23,041

 

$       20,100

 

$    18,667

 

$       21,086

 

$  65,048

 

$  63,204

Life and health commissions

6,162

 

6,753

 

5,943

 

5,900

 

6,134

 

18,858

 

19,222

Risk management income

635

 

605

 

750

 

608

 

703

 

1,990

 

1,951

Other

3,001

 

2,566

 

2,337

 

583

 

693

 

7,904

 

8,305

     Total insurance commissions

$    31,705

 

$       32,965

 

$       29,130

 

$    25,758

 

$       28,616

 

$  93,800

 

$  92,682

 

 

 

BancorpSouth Bank

Selected Additional Information

(Dollars in thousands)

(Unaudited)

           
 

Quarter Ended

 

Sep-18

Jun-18

Mar-18

Dec-17

Sep-17

MORTGAGE SERVICING RIGHTS:

         

Fair value, beginning of period

$      75,614

$       75,206

$       69,190

$      66,417

$       65,491

Additions to mortgage servicing rights:

         

   Originations of servicing assets

3,520

3,516

2,683

3,011

3,393

Changes in fair value:

         

   Due to payoffs/paydowns

(2,984)

(2,916)

(2,382)

(2,659)

(2,502)

   Due to change in valuation inputs or

         

     assumptions used in the valuation model

1,646

(191)

5,716

2,422

36

   Other changes in fair value

-

(1)

(1)

(1)

(1)

Fair value, end of period

$      77,796

$       75,614

$       75,206

$      69,190

$       66,417

           

MORTGAGE BANKING REVENUE:

         

Production revenue:

         

   Origination

$       3,161

$         5,295

$         5,239

$       2,824

$         4,809

   Servicing

4,868

4,726

4,875

4,703

4,648

   Payoffs/Paydowns

(2,984)

(2,916)

(2,382)

(2,659)

(2,502)

     Total production revenue

5,045

7,105

7,732

4,868

6,955

Market value adjustment on MSR

1,646

(191)

5,716

2,422

36

Market value adjustment on MSR Hedge

(174)

(10)

(183)

(44)

(82)

Total mortgage banking revenue

$       6,517

$         6,904

$       13,265

$       7,246

$         6,909

           
           
           

Mortgage loans serviced

$ 6,628,445

$   6,579,444

$   6,532,950

$ 6,533,642

$   6,506,550

MSR/mtg loans serviced

1.17%

1.15%

1.15%

1.06%

1.02%

           

AVAILABLE-FOR-SALE SECURITIES, at fair value

         

U.S. Government agencies

$ 2,260,949

$   2,235,238

$   2,385,962

$ 2,214,995

$   1,687,186

U.S. Government agency issued residential

         

   mortgage-back securities

138,624

141,443

139,148

148,548

157,891

U.S. Government agency issued commercial

         

   mortgage-back securities

107,506

122,974

124,041

122,068

153,509

Obligations of states and political subdivisions

319,280

329,099

340,616

312,931

328,314

Total available-for-sale securities

$ 2,826,359

$   2,828,754

$   2,989,767

$ 2,798,542

$   2,326,900

 

 

 

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

 

Year to Date

     

9/30/2018

 

6/30/2018

 

3/31/2018

 

12/31/2017

 

9/30/2017

 

9/30/2018

 

9/30/2017

                               

Net income

 

$      66,683

 

$   54,046

 

$          53,491

 

$          37,523

 

$          39,528

 

$         174,220

 

$       115,510

Plus:

Merger expense, net of tax

 

707

 

1,434

 

4,298

 

427

 

-

 

6,439

 

-

 

Tax-related matters

 

-

 

-

 

-

 

623

 

-

 

-

 

-

Less:

Security (losses)/gains, net of tax

 

(40)

 

(2)

 

20

 

325

 

3

 

(22)

 

681

 

Tax-related matters

 

11,288

 

-

 

-

 

-

 

-

 

11,288

 

-

Net operating income

 

$      56,142

 

$   55,482

 

$          57,769

 

$          38,248

 

$          39,525

 

$         169,393

 

$       114,829

                               

Less:

MSR market value adjustment, net of tax

 

1,103

 

(151)

 

4,153

 

1,476

 

(28)

 

5,106

 

(385)

Net operating income-excluding MSR

 

$      55,039

 

$   55,633

 

$          53,616

 

$          36,772

 

$          39,553

 

$         164,287

 

$       115,214

                               
                               

Reconciliation of Total Operating Expense to Total Noninterest Expense:

                   
                               

Total noninterest expense

 

$    142,409

 

$ 145,182

 

$        147,701

 

$         125,881

 

$         126,903

 

$         435,292

 

$       381,565

Less:

Merger expense

 

942

 

1,911

 

5,727

 

688

 

-

 

8,580

 

-

Total operating expense

 

$    141,467

 

$ 143,271

 

$        141,974

 

$         125,193

 

$         126,903

 

$         426,712

 

$       381,565

 

 

 

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

 

Year to Date

     

9/30/2018

 

6/30/2018

 

3/31/2018

 

12/31/2017

 

9/30/2017

 

9/30/2018

 

9/30/2017

Tangible assets

                           

Total assets

 

$ 17,249,175

 

$  17,222,491

 

$  17,185,772

 

$ 15,298,518

 

$  14,760,394

 

$ 17,249,175

 

$ 14,760,394

Less:  

Goodwill

 

590,292

 

588,004

 

580,900

 

300,798

 

300,798

 

590,292

 

300,798

 

Other identifiable intangible assets

 

36,475

 

39,031

 

40,590

 

17,882

 

18,860

 

36,475

 

18,860

Total tangible assets

 

$ 16,622,408

 

$  16,595,456

 

$  16,564,282

 

$ 14,979,838

 

$  14,440,736

 

$ 16,622,408

 

$ 14,440,736

                               

Tangible shareholders' equity

                           

Total shareholders' equity

 

$   2,116,375

 

$    2,072,083

 

$    2,060,487

 

$   1,713,485

 

$    1,700,502

 

$   2,116,375

 

$   1,700,502

Less:

Goodwill

 

590,292

 

588,004

 

580,900

 

300,798

 

300,798

 

590,292

 

300,798

 

Other identifiable intangible assets

 

36,475

 

39,031

 

40,590

 

17,882

 

18,860

 

36,475

 

18,860

Total tangible shareholders' equity

 

$   1,489,608

 

$    1,445,048

 

$    1,438,997

 

$   1,394,805

 

$    1,380,844

 

$   1,489,608

 

$   1,380,844

                               

Total average assets

 

$ 17,059,865

 

$  17,094,283

 

$  16,918,568

 

$ 14,809,497

 

$  14,710,245

 

$ 17,024,756

 

$ 14,760,991

Total shares of common stock outstanding

 

98,525,516

 

98,700,509

 

99,636,779

 

90,312,378

 

90,329,896

 

98,525,516

 

90,329,896

Average shares outstanding-diluted

 

98,819,905

 

99,057,054

 

98,942,268

 

90,546,824

 

91,099,770

 

98,939,743

 

92,157,392

                               

Tangible shareholders' equity to tangible assets (1)

 

8.96%

 

8.71%

 

8.69%

 

9.31%

 

9.56%

 

8.96%

 

9.56%

Return on tangible equity (2)

 

17.76%

 

15.00%

 

15.08%

 

10.67%

 

11.36%

 

15.64%

 

11.18%

Operating return on tangible equity-excluding MSR (3)

 

14.66%

 

15.44%

 

15.11%

 

10.46%

 

11.36%

 

14.75%

 

11.16%

Operating return on average assets-excluding MSR (4)

 

1.28%

 

1.31%

 

1.29%

 

0.99%

 

1.07%

 

1.29%

 

1.04%

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

 

10.45%

 

10.88%

 

10.80%

 

8.58%

 

9.25%

 

10.71%

 

9.05%

Tangible book value per share (6)

 

$         15.12

 

$          14.64

 

$          14.44

 

$         15.44

 

$         15.29

 

$         15.12

 

$         15.29

Operating earnings per share (7)

 

$           0.57

 

$            0.56

 

$            0.58

 

$           0.42

 

$           0.43

 

$           1.72

 

$           1.25

Operating earnings per share-excluding MSR (8)

 

$           0.56

 

$            0.56

 

$            0.54

 

$           0.41

 

$           0.43

 

$           1.67

 

$           1.25

                               
                               

(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 or Will Fisackerly, Senior Vice President and Director of Corporate Finance, 662/680-2475

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