BancorpSouth Announces First Quarter 2019 Financial Results

TUPELO, Miss., April 17, 2019 /PRNewswire/ -- BancorpSouth Bank (NYSE: BXS) (the "Company") today announced financial results for the quarter ended March 31, 2019.

Highlights for the first quarter of 2019 included:

  • Reported quarterly net income of $51.6 million, or $0.52 per diluted share.
  • Earnings were impacted by a negative pre-tax mortgage servicing rights ("MSR") valuation adjustment of $4.9 million.
  • Net operating income – excluding MSR – of $55.9 million, or $0.56 per diluted share, which represents an increase of 3.7 percent on a per share basis, compared with the first quarter of 2018.
  • Net interest margin – excluding accretable yield – increased to 3.74 percent, compared with 3.71 percent for the fourth quarter of 2018.
  • Continued strong credit quality reflected by provision for credit losses of $0.5 million for the quarter; improvement in non-performing and classified asset levels.
  • Reported balance sheet growth of 7% on an annualized basis including deposit growth of $623 million, or 18% on an annualized basis, while loans were essentially flat.
  • Announced the signing of definitive merger agreements with Van Alstyne Financial Corporation, the parent company of Texas Star Bank, and Summit Financial Enterprises, Inc., the parent company of Summit Bank, National Association.
  • Repurchased 1.0 million shares of outstanding common stock at a weighted average price of $27.60 per share.
  • Completed the acquisitions of Casey Bancorp, Inc., the parent company of Grand Bank of Texas, and Merchants Trust, Inc., the parent company of Merchants Bank, effective April 1, 2019, which will collectively add over $400 million in loans and over $500 million in deposits to the Company's presence in Texas and Alabama in the second quarter.

The Company reported net income of $51.6 million, or $0.52 per diluted share, for the first quarter of 2019, compared with net income of $53.5 million, or $0.54 per diluted share, for the first quarter of 2018 and net income of $47.1 million, or $0.47 per diluted share, for the fourth quarter of 2018.  The Company reported net operating income – excluding MSR – of $55.9 million, or $0.56 per diluted share, for the first quarter of 2019, compared with $53.6 million, or $0.54 per diluted share, for the first quarter of 2018 and $56.4 million, or $0.57 per diluted share, for the fourth 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. 

"As we look at our successes for the first quarter, we are excited about the recent transaction announcements with Texas Star Bank and Summit Bank," remarked Dan Rollins, BancorpSouth Chairman and Chief Executive Officer.  "The addition of Texas Star Bank will significantly enhance our presence in the Dallas-Forth Worth, Texas CMSA while the Summit Bank transaction will provide us with additional scale in the Florida Panhandle.  We look forward to these two great banks joining our Company during the second half of 2019.  As we look at our financial results for the quarter, we noted several key accomplishments despite the adverse impact of the MSR adjustment on earnings.   We reported continued expansion in our net interest margin – excluding accretable yield – which increased to 3.74 percent for the first quarter from 3.71 percent for the fourth quarter of 2018.   Consistent with historical seasonal trends, we saw meaningful deposit growth while loans were essentially flat for the quarter.   Total deposit growth was $623 million, or 18 percent on an annualized basis.  Given the pullback in the market, we repurchased one million shares of stock during the quarter at a weighted average price of $27.60 per share, most of which occurred during the latter part of the quarter."

"Finally, we are pleased to have recently completed our mergers with Grand Bank of Texas and Merchants Bank.  Mike Casey and his team will bolster our efforts to expand in the Dallas and Texas Hill Country markets while Joe Bedwell, Jim Reid, and their team will help us further our penetration in Mobile, Alabama while also allowing us to enter new markets in surrounding counties.  We anticipate completing the operational integration of these banks during the second quarter of this year."

Net Interest Revenue

Net interest revenue was $152.6 million for the first quarter of 2019, an increase of 10.5 percent from $138.1 million for the first quarter of 2018 and a decrease of 0.2 percent from $152.9 million for the fourth quarter of 2018.  The fully taxable equivalent net interest margin was 3.86 percent for the first quarter of 2019, compared with 3.67 percent for the first quarter of 2018 and 3.80 percent for the fourth quarter of 2018.  Yields on net loans and leases were 5.09 percent for the first quarter of 2019, compared with 4.60 percent for the first quarter of 2018 and 4.94 percent for the fourth quarter of 2018, while yields on total interest earning assets were 4.57 percent for the first quarter of 2019, compared with 4.05 percent for the first quarter of 2018 and 4.45 percent for the fourth quarter of 2018.  The net interest margin, excluding accretable yield, was 3.74 percent for the first quarter of 2019, compared with 3.60 percent for the first quarter of 2018 and 3.71 percent for the fourth quarter of 2018 while yields on net loans and leases, excluding accretable yield, were 4.95 percent for the first quarter of 2019, compared with 4.51 percent for the first quarter of 2018 and 4.83 percent for the fourth quarter of 2018.  The average cost of deposits was 0.63 percent for the first quarter of 2019, compared with 0.31 percent for the first quarter of 2018 and 0.52 percent for the fourth quarter of 2018.

Asset, Deposit and Loan Activity

Total assets were $18.3 billion at March 31, 2019, compared with $17.2 billion at March 31, 2018.  Loans and leases, net of unearned income, were $13.1 billion at March 31, 2019, compared with $12.3 billion at March 31, 2018.  Total deposits were $14.7 billion at March 31, 2019, compared with $13.9 billion at March 31, 2018.  These balance sheet comparisons include the impact of the acquisition of Icon Capital Corporation, which closed effective October 1, 2018.  Balance sheet totals for Icon Capital Corporation 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 first quarter of 2019 reflect a provision for credit losses of $0.5 million, compared with a provision of $1.0 million for both the first and fourth quarters of 2018.  Net charge-offs for the first quarter of 2019 were $4.1 million, compared with net recoveries of $0.2 million for the first quarter of 2018 and net charge-offs of $1.9 million for the fourth quarter of 2018.  The allowance for credit losses was $116.5 million, or 0.89 percent of net loans and leases, at March 31, 2019, compared with $119.4 million, or 0.97 percent of net loans and leases, at March 31, 2018 and $120.1 million, or 0.92 percent of net loans and leases, at December 31, 2018.  The allowance for credit losses coverage metrics were impacted by loans acquired in the acquisition that closed during the fourth quarter of 2018.

Total non-performing assets were $97.0 million, or 0.74 percent of net loans and leases, at March 31, 2019, compared with $90.9 million, or 0.74 percent of net loans and leases, at March 31, 2018, and $106.0 million, or 0.81 percent of net loans and leases, at December 31, 2018.  Other real estate owned was $9.7 million at March 31, 2019, compared with $9.4 million at March 31, 2018 and $9.3 million at December 31, 2018.

Noninterest Revenue

Noninterest revenue was $64.2 million for the first quarter of 2019, compared with $78.9 million for the first quarter of 2018 and $59.0 million for the fourth quarter of 2018.  These results include a negative MSR valuation adjustment of $4.9 million for the first quarter of 2019, compared with a positive MSR valuation adjustment of $5.5 million for the first quarter of 2018 and a negative MSR valuation adjustment of $8.1 million for the fourth 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 $6.9 million for the first quarter of 2019, compared with $7.7 million for the first quarter of 2018 and $4.8 million for the fourth quarter of 2018.  Mortgage origination volume for the first quarter of 2019 was $291.7 million, compared with $291.9 million for the first quarter of 2018 and $305.0 million for the fourth quarter of 2018.  Of the total mortgage origination volume for the first quarter of 2019, $54.1 million was portfolio loans, compared with $61.0 million for the first quarter of 2018 and $47.3 million for the fourth quarter of 2018.

Credit card, debit card, and merchant fee revenue was $8.9 million for the first quarter of 2019, compared with $9.6 million for the first quarter of 2018 and $9.9 million for the fourth quarter of 2018.  Deposit service charge revenue was $10.8 million for the first quarter of 2019, compared with $10.9 million for the first quarter of 2018 and $11.7 million for the fourth quarter of 2018.  Wealth management revenue was $5.6 million for the first quarter of 2019, compared with $5.7 million for the first quarter of 2018 and $5.5 million for the fourth quarter of 2018.  Other noninterest revenue was $6.7 million for the first quarter of 2019, compared with $10.4 million for the first quarter of 2018 and $7.0 million for the fourth quarter of 2018.  Insurance commission revenue was $30.2 million for the first quarter of 2019, compared with $29.1 million for the first quarter of 2018 and $28.0 million for the fourth quarter of 2018. 

Noninterest Expense

Noninterest expense for the first quarter of 2019 was $150.0 million, compared with $147.7 million for the first quarter of 2018 and $152.3 million for the fourth quarter of 2018.  Salaries and employee benefits expense was $97.2 million for the first quarter of 2019, compared with $91.2 million for the first quarter of 2018 and $92.0 million for the fourth quarter of 2018.  Occupancy expense was $11.6 million for the first quarter of 2019, compared with $10.8 million for the first quarter of 2018 and $12.1 million for the fourth quarter of 2018.  Other noninterest expense was $34.6 million for the first quarter of 2019, compared with $39.6 million for the first quarter of 2018 and $42.5 million for the fourth quarter of 2018.  Additionally, merger-related expense for the first quarter of 2019 was $0.9 million, compared with merger-related expense of $5.7 million for the first quarter of 2018 and $4.5 million for the fourth quarter of 2018. 

Capital Management

The Company's equity capitalization is comprised entirely of common stock.  The Company's ratio of shareholders' equity to assets was 12.16 percent at March 31, 2019, compared with 11.99 percent at March 31, 2018 and 12.25 percent at December 31, 2018.  The ratio of tangible shareholders' equity to tangible assets was 8.41 percent at March 31, 2019, compared with 8.69 percent at March 31, 2018 and 8.46 percent at December 31, 2018.

During the first quarter of 2019, the Company repurchased 1,000,000 shares of its outstanding common stock at a weighted average price of $27.60 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 fourth quarter of 2018, the Company repurchased 2,973,416 shares of its outstanding common stock at a weighted average price of $30.22 per share, which completed the previous authorization.  As of March 31, 2019, the Company had 2,000,000 remaining shares available for repurchase under its current share repurchase authorization, which expires on December 31, 2019.  

Estimated regulatory capital ratios at March 31, 2019 were calculated in accordance with the Basel III capital framework.  The Company is a "well capitalized" bank, as defined by federal regulations, at March 31, 2019, with Tier 1 risk-based capital of 10.79 percent and total risk-based capital of 11.60 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification. 

Summary

Rollins concluded, "We are off to a great start through the first three months of 2019.  Our financial performance reflects many of the same trends that we've talked about for some time now.  We saw continued improvement in our core net interest margin while our credit quality trends remained very stable.  We also continue to manage total operating expenses in a very tight range.  Finally, we are pleased with our ability to execute on our strategic plan.  The transactions with Merchants Bank and Grand Bank were closed in less than five months from the announcement date.   In addition, we announced two additional transactions with Texas Star Bank and Summit Bank in March.  We are excited about the additional value that each of these four banks will add to our Company as we continue to expand, particularly in higher growth markets."

TRANSACTIONS

Van Alstyne Financial Corporation

On March 5, 2019, the Company announced the signing of a definitive merger agreement ("Texas Star Merger Agreement") with Van Alstyne Financial Corporation and its wholly owned subsidiary, Texas Star Bank, (collectively referred to as "Texas Star"), pursuant to which Texas Star agreed to be merged with and into the Company (the "Texas Star Merger").  Texas Star operates 7 full-service banking offices in Collin and Grayson counties in Texas, and one loan production office in Durant, Oklahoma.  As of March 31, 2019, Texas Star, on a consolidated basis, reported total assets of $380.9 million, total loans of $330.8 million and total deposits of $331.3 million.  Under the terms of the Texas Star Merger Agreement, the Company expects to issue approximately 2,100,000 shares of the Company's common stock plus $20.5 million in cash for all outstanding shares of Van Alstyne Financial Corporation's capital stock.  For more information regarding the Texas Star Merger, see our Current Report on Form 8-K that was filed with the Federal Deposit Insurance Corporation ("FDIC") on March 5, 2019.  The Texas Star Merger Agreement has been unanimously approved by the Boards of Directors of both the Company and Texas Star. Texas Star has agreed to convene a meeting of its shareholders to vote upon the approval of the Texas Star Merger Agreement. Subject to the satisfaction of all closing conditions, including the receipt of all required regulatory approvals, the Texas Star Merger is expected to be completed during the second half of 2019, although the Company can provide no assurance that the Texas Star Merger will close during this time period or at all.

Summit Financial Enterprises, Inc.

On March 5, 2019, the Company announced the signing of a definitive merger agreement (the "Summit Merger Agreement") with Summit Financial Enterprises, Inc. and its wholly owned subsidiary, Summit Bank, (collectively referred to as "Summit"), pursuant to which Summit agreed to be merged with and into the Company (the "Summit Merger").  Summit operates 4 offices located in Panama City, Panama City Beach, Fort Walton Beach, and Pensacola, Florida.  As of March 31, 2019, Summit, on a consolidated basis, reported total assets of $519.4 million, total loans of $277.1 million and total deposits of $449.2 million.  Under the terms of the Summit Merger Agreement, the Company expects to issue approximately 2,500,000 shares of the Company's common stock plus $20.0 million in cash for all outstanding shares of Summit Financial Enterprises, Inc.'s capital stock.  For more information regarding the Summit Merger, see our Current Report on Form 8-K that was filed with the FDIC on March 5, 2019.  The Summit Merger Agreement has been unanimously approved by the Boards of Directors of both the Company and Summit. Summit has agreed to convene a meeting of its shareholders to vote upon the approval of the Summit Merger Agreement. Subject to the satisfaction of all closing conditions, including the receipt of all required regulatory approvals, the Summit Merger is expected to be completed during the second half of 2019, although the Company can provide no assurance that the Summit Merger will close during this time period or at all.

Casey Bancorp, Inc.

On April 1, 2019, the Company completed the merger with Casey Bancorp, Inc. and its wholly owned subsidiary, Grand Bank of Texas, (collectively referred to as "Grand Bank"), pursuant to which Grand Bank was merged with and into the Company (the "Grand Bank Merger").  Grand Bank operated 4 full-service banking offices in the cities of Dallas, Grand Prairie, Horseshoe Bay and Marble Falls, all in Texas.  As of April 1, 2019, Grand Bank, on a consolidated basis, reported total assets of $341.0 million, total loans of $261.0 million and total deposits of $324.0 million.  Under the terms of the definitive merger agreement, the Company issued approximately 1,275,000 shares of the Company's common stock plus $14.6 million in cash for all outstanding shares of Casey Bancorp, Inc.'s capital stock.  For more information regarding the Grand Bank Merger, see our Current Report on Form 8-K that was filed with the FDIC on April 1, 2019. 

Merchants Trust, Inc.

On April 1, 2019, the Company completed the merger with Merchants Trust, Inc. and its wholly owned subsidiary, Merchants Bank (collectively referred to as "Merchants"), pursuant to which Merchants was merged with and into the Company (the "Merchants Merger").  Merchants, which was based in Jackson, Alabama, operated 6 full-service banking offices in Clarke and Mobile counties in Alabama.  As of April 1, 2019, Merchants, on a consolidated basis, reported total assets of $225.0 million, total loans of $154.0 million and total deposits of $205.0 million.  Under the terms of the definitive merger agreement, the Company issued approximately 950,000 shares of the Company's common stock plus $9.6 million in cash for all outstanding shares of Merchants Trust, Inc.'s capital stock.  For more information regarding the Merchants Merger, see our Current Report on Form 8-K that was filed with the FDIC on April 1, 2019. 

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 (the "Icon Merger").  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 merger agreement, the Company issued approximately 4,125,000 shares of the Company's common stock plus $17.5 million in cash, $7 million of which was placed in a separate non-interest bearing escrow account that is to be paid if certain conditions are met, as described in the Current Report on Form 8-K filed with the FDIC on October 1, 2018, 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 FDIC on October 1, 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.

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 22 of this news release.

Conference Call and Webcast

The Company will conduct a conference call to discuss its first quarter 2019 financial results on April 18, 2019, at 10:00 a.m. (Central Time).  This conference call will be an interactive session between management and analysts. 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 $19 billion in assets.  BancorpSouth operates approximately 295 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 Icon, Grand Bank, Merchants, Texas Star and Summit Mergers (referred to collectively as the "Mergers") on the Company, the acceptance by customers of Icon, Grand Bank, Merchants, Texas Star and Summit 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 Icon, Grand Bank, Merchants, Texas Star and Summit Mergers, the possibility that any of the anticipated benefits, costs, synergies and financial and operational improvements of the Icon, Grand Bank, Merchants, Texas Star and Summit Mergers will not be realized or will not be realized as expected, the ability of the Company and Texas Star and Summit to complete the Texas Star Merger and Summit Merger, the ability of the Company and Texas Star and Summit to satisfy the conditions to the completion of the Texas Star Merger and Summit Merger, including the approval of the merger transaction by Texas Star and Summit shareholders and the receipt of all regulatory approvals required for the Texas Star Merger and Summit Merger on the terms expected in the Texas Star Merger Agreement and the Summit Merger Agreement, the ability of the Company and Texas Star and Summit to meet expectations regarding the timing, completion and accounting and tax treatments of the Texas Star Merger and Summit Merger, the possibility that any of the anticipated benefits of the Texas Star Merger and Summit Merger will not be realized or will not be realized as expected, the failure of the Texas Star Merger or Summit Merger to close for any other reason, the effect of any announcements regarding the Texas Star Merger or Summit Merger on the Company's operating results, the possibility that the Texas Star Merger and Summit Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events, the lack of availability of the Company's filings mandated by the Exchange Act from the SEC's publicly available website after November 1, 2017, 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

 

3/31/2019

12/31/2018

9/30/2018

6/30/2018

3/31/2018

Earnings Summary:

         

Interest revenue

$                    181,133

$                    178,850

$                    163,158

$                    159,290

$                    152,195

Interest expense

28,579

25,969

21,023

17,162

14,117

Net interest revenue

152,554

152,881

142,135

142,128

138,078

Provision for credit losses

500

1,000

-

2,500

1,000

Net interest revenue, after provision

         

   for credit losses

152,054

151,881

142,135

139,628

137,078

Noninterest revenue

64,220

59,031

71,616

72,456

78,934

Noninterest expense

149,968

152,342

142,409

145,182

147,701

Income before income taxes

66,306

58,570

71,342

66,902

68,311

Income tax expense

14,708

11,473

4,659

12,856

14,820

Net income

$                      51,598

$                      47,097

$                      66,683

$                      54,046

$                      53,491

           

Balance Sheet - Period End Balances

         

Total assets

$               18,314,183

$               18,001,540

$               17,249,175

$               17,222,491

$               17,185,772

Total earning assets

16,426,872

16,144,098

15,594,549

15,600,037

15,593,366

Total securities

2,692,499

2,749,188

2,826,359

2,828,754

2,989,767

Loans and leases, net of unearned income

13,071,059

13,112,149

12,449,995

12,418,114

12,296,849

Allowance for credit losses

116,499

120,070

121,019

119,920

119,434

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

1,191,673

1,310,089

835,939

926,996

1,076,208

Remaining loan mark on acquired loans

30,782

37,366

13,368

14,485

19,330

Total deposits

14,692,609

14,069,966

13,347,193

13,476,558

13,894,301

Long-term debt

5,503

6,213

33,182

33,214

32,963

Total shareholders' equity

2,226,585

2,205,737

2,116,375

2,072,083

2,060,487

           

Balance Sheet - Average Balances

         

Total assets

$               18,033,513

$               17,879,081

$               17,059,865

$               17,094,283

$               16,918,568

Total earning assets

16,156,235

16,056,656

15,465,260

15,496,007

15,374,336

Total securities

2,704,383

2,784,437

2,814,751

2,906,235

2,966,917

Loans and leases, net of unearned income

13,078,221

13,063,422

12,433,701

12,334,756

12,084,020

Total deposits

14,445,834

14,072,416

13,387,849

13,539,324

13,563,510

Long-term debt

5,826

17,403

33,196

33,147

34,433

Total shareholders' equity

2,212,748

2,191,852

2,089,746

2,051,452

2,012,639

           

Nonperforming Assets:

         

Non-accrual loans and leases

$                      68,949

$                      70,555

$                      55,532

$                      60,045

$                      65,303

Loans and leases 90+ days past due, still accruing

8,471

18,695

2,934

6,335

6,519

Restructured loans and leases, still accruing

9,874

7,498

7,564

6,982

9,681

Non-performing loans (NPLs)

87,294

96,748

66,030

73,362

81,503

Other real estate owned

9,686

9,276

4,301

7,828

9,362

Non-performing assets (NPAs)

$                      96,980

$                    106,024

$                      70,331

$                      81,190

$                      90,865

           

Financial Ratios and Other Data:

         

Return on average assets

1.16%

1.05%

1.55%

1.27%

1.28%

Operating return on average assets-excluding MSR*

1.26%

1.25%

1.28%

1.31%

1.29%

Return on average shareholders' equity

9.46%

8.52%

12.66%

10.57%

10.78%

Operating return on average shareholders' equity-excluding MSR*

10.24%

10.20%

10.45%

10.88%

10.80%

Return on tangible equity*

14.16%

12.81%

17.76%

15.00%

15.08%

Operating return on tangible equity-excluding MSR*

15.34%

15.33%

14.66%

15.44%

15.11%

Noninterest income to average assets

1.44%

1.31%

1.67%

1.70%

1.89%

Noninterest expense to average assets

3.37%

3.38%

3.31%

3.41%

3.54%

Net interest margin-fully taxable equivalent

3.86%

3.80%

3.67%

3.71%

3.67%

Net interest margin-fully taxable equivalent, excluding net accretion

         

  on acquired loans and leases

3.74%

3.71%

3.62%

3.63%

3.60%

Net interest rate spread

3.56%

3.53%

3.43%

3.52%

3.52%

Efficiency ratio (tax equivalent)*

68.85%

71.52%

66.29%

67.31%

67.66%

Operating efficiency ratio-excluding MSR (tax equivalent)*

66.89%

66.86%

66.34%

66.36%

66.79%

Loan/deposit ratio

88.96%

93.19%

93.28%

92.15%

88.50%

Price to earnings multiple (avg)

16.60

11.67

15.07

17.07

17.77

Market value to book value

125.56%

118.27%

152.23%

156.95%

153.77%

Market value to book value (avg)

132.05%

131.34%

158.19%

159.33%

159.14%

Market value to tangible book value

189.14%

178.79%

216.28%

225.06%

220.18%

Market value to tangible book value (avg)

198.92%

198.55%

224.75%

228.47%

227.87%

Employee FTE

4,370

4,445

4,270

4,366

4,305

           

*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 22 and 23.

       
           

Credit Quality Ratios:

         

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

0.12%

0.06%

(0.04%)

0.07%

(0.01%)

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

0.02%

0.03%

0.00%

0.08%

0.03%

Allowance for credit losses to net loans and leases

0.89%

0.92%

0.97%

0.97%

0.97%

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

0.98%

1.02%

1.04%

1.05%

1.07%

Allowance for credit losses to non-performing loans and leases

133.46%

124.11%

183.28%

163.46%

146.54%

Allowance for credit losses to non-performing assets

120.13%

113.25%

172.07%

147.70%

131.44%

Non-performing loans and leases to net loans and leases

0.67%

0.74%

0.53%

0.59%

0.66%

Non-performing assets to net loans and leases

0.74%

0.81%

0.56%

0.65%

0.74%

           

Equity Ratios:

         

Total shareholders' equity to total assets

12.16%

12.25%

12.27%

12.03%

11.99%

Tangible shareholders' equity to tangible assets*

8.41%

8.46%

8.96%

8.71%

8.69%

           
           

Capital Adequacy:

         

Common  Equity Tier 1 capital

10.79%

10.84%

11.71%

11.42%

11.30%

Tier 1 capital

10.79%

10.84%

11.71%

11.42%

11.30%

Total capital

11.60%

11.68%

12.60%

12.30%

12.18%

Tier 1 leverage capital

9.03%

9.06%

9.68%

9.38%

9.39%

   Estimated for current quarter

         
           

Common Share Data:

         

Basic earnings per share

$                          0.52

$                          0.47

$                          0.68

$                          0.55

$                          0.54

Diluted earnings per share

0.52

0.47

0.67

0.55

0.54

Operating earnings per share*

0.52

0.51

0.57

0.56

0.58

Operating earnings per share- excluding MSR*

0.56

0.57

0.56

0.56

0.54

Cash dividends per share

0.17

0.17

0.17

0.14

0.14

Book value per share

22.48

22.10

21.48

20.99

20.68

Tangible book value per share*

14.92

14.62

15.12

14.64

14.44

Market value per share (last)

28.22

26.14

32.70

32.95

31.80

Market value per share (high)

33.45

33.50

35.40

35.45

35.55

Market value per share (low)

25.76

24.31

32.45

30.60

30.90

Market value per share (avg)

29.68

29.03

33.98

33.45

32.91

Dividend payout ratio

32.78%

35.93%

25.15%

25.62%

25.85%

Total shares outstanding

99,066,856

99,797,271

98,525,516

98,700,509

99,636,779

Average shares outstanding - basic

99,506,952

99,541,965

98,646,087

98,906,619

98,765,789

Average shares outstanding - diluted

99,717,119

99,720,219

98,819,905

99,057,054

98,942,268

           
           

Yield/Rate:

         

(Taxable equivalent basis)

         

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

5.09%

4.94%

4.72%

4.67%

4.60%

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

         

  net accretion on acquired loans and leases

4.95%

4.83%

4.64%

4.57%

4.51%

Available-for-sale securities:

         

  Taxable

2.04%

1.92%

1.80%

1.77%

1.72%

  Tax-exempt

4.63%

4.47%

4.40%

4.39%

4.30%

Short-term, FHLB and other equity investments

2.67%

2.84%

2.04%

2.02%

1.54%

  Total interest earning assets and revenue

4.57%

4.45%

4.21%

4.15%

4.05%

Deposits

0.63%

0.52%

0.43%

0.34%

0.31%

  Demand - interest bearing

0.85%

0.70%

0.59%

0.43%

0.36%

  Savings

0.30%

0.30%

0.24%

0.15%

0.13%

  Other time

1.46%

1.26%

1.06%

0.95%

0.89%

Short-term borrowings

2.16%

2.06%

1.79%

1.62%

1.25%

Total interest bearing deposits and short-term borrowings

1.01%

0.91%

0.77%

0.62%

0.51%

Junior subordinated debt

N/A

N/A

N/A

N/A

0.00%

Long-term debt

4.88%

4.12%

4.06%

4.11%

4.17%

  Total interest bearing liabilities and expense

1.01%

0.92%

0.78%

0.63%

0.53%

Interest bearing liabilities to interest earning assets

71.15%

69.79%

69.12%

70.27%

70.91%

Net interest tax equivalent adjustment

$                        1,035

$                        1,088

$                        1,088

$                        1,119

$                        1,205

           

*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 22 and 23.

       

 

 

BancorpSouth Bank

Consolidated Balance Sheets

(Unaudited)

             
 

Mar-19

Dec-18

Sep-18

Jun-18

Mar-18

 
 

(Dollars in thousands)

 

Assets

           

Cash and due from banks

$                207,486

$                239,960

$                169,493

$                198,374

$                180,104

 

Interest bearing deposits with other banks

           

and Federal funds sold

490,667

92,476

138,677

152,566

127,345

 

Available-for-sale securities, at fair value

2,692,499

2,749,188

2,826,359

2,828,754

2,989,767

 

Loans and leases

13,086,801

13,129,012

12,464,877

12,433,152

12,312,346

 

  Less:  Unearned income

15,742

16,863

14,882

15,038

15,497

 

             Allowance for credit losses

116,499

120,070

121,019

119,920

119,434

 

Net loans and leases

12,954,560

12,992,079

12,328,976

12,298,194

12,177,415

 

Loans held for sale

138,379

140,300

132,080

153,396

141,979

 

Premises and equipment, net

432,540

361,859

342,947

339,372

342,353

 

Accrued interest receivable

59,038

57,054

56,369

51,921

52,856

 

Goodwill

699,073

695,720

590,292

588,004

580,900

 

Other identifiable intangibles

49,396

50,896

36,475

39,031

40,590

 

Bank owned life insurance

305,315

308,324

304,687

306,116

304,850

 

Other real estate owned

9,686

9,276

4,301

7,828

9,362

 

Other assets

275,544

304,408

318,519

258,935

238,251

 

Total Assets

$           18,314,183

$           18,001,540

$           17,249,175

$           17,222,491

$           17,185,772

 

Liabilities

           

Deposits:

           

  Demand:  Noninterest bearing

$             4,201,695

$             4,124,744

$             4,007,158

$             4,135,322

$             4,035,830

 

                  Interest bearing

6,353,731

5,898,851

5,535,689

5,509,901

5,945,359

 

  Savings

1,855,024

1,836,167

1,783,602

1,810,149

1,843,264

 

  Other time

2,282,159

2,210,204

2,020,744

2,021,186

2,069,848

 

Total deposits

14,692,609

14,069,966

13,347,193

13,476,558

13,894,301

 

Securities sold under agreement to repurchase

481,567

416,008

403,724

407,704

469,114

 

Federal funds purchased

           

   and other short-term borrowing

630,000

1,095,000

1,095,000

1,025,022

500,000

 

Accrued interest payable

9,718

8,543

7,330

5,961

5,525

 

Long-term debt

5,503

6,213

33,182

33,214

32,963

 

Other liabilities

268,201

200,073

246,371

201,949

223,382

 

Total Liabilities

16,087,598

15,795,803

15,132,800

15,150,408

15,125,285

 

Shareholders' Equity

           

Common stock

247,667

249,493

246,314

246,751

249,092

 

Capital surplus

462,256

484,482

439,590

441,950

465,699

 

Accumulated other comprehensive loss

(69,924)

(80,491)

(91,650)

(88,751)

(85,994)

 

Retained earnings

1,586,586

1,552,253

1,522,121

1,472,133

1,431,690

 

Total Shareholders' Equity

2,226,585

2,205,737

2,116,375

2,072,083

2,060,487

 

Total Liabilities & Shareholders' Equity

$           18,314,183

$           18,001,540

$           17,249,175

$           17,222,491

$           17,185,772

 

 

 

BancorpSouth Bank

Consolidated Average Balance Sheets

(Unaudited)

             
 

Mar-19

Dec-18

Sep-18

Jun-18

Mar-18

 
 

(Dollars in thousands)

 

Assets

           

Cash and due from banks

$                213,415

$                218,553

$                179,098

$                203,220

$                202,141

 

Interest bearing deposits with other banks

           

and Federal funds sold

238,194

62,516

57,204

66,035

182,488

 

Available-for-sale securities, at fair value

2,704,383

2,784,437

2,814,751

2,906,235

2,966,917

 

Loans and leases

13,094,817

13,079,321

12,448,814

12,350,226

12,099,694

 

  Less:  Unearned income

16,596

15,899

15,113

15,470

15,674

 

             Allowance for credit losses

118,352

120,426

120,678

119,622

118,840

 

Net loans and leases

12,959,869

12,942,996

12,313,023

12,215,134

11,965,180

 

Loans held for sale

86,294

96,588

112,387

144,400

98,662

 

Premises and equipment, net

430,675

372,488

340,456

342,395

343,098

 

Accrued interest receivable

54,296

54,156

50,437

48,767

47,770

 

Goodwill

695,787

668,544

588,777

583,188

544,840

 

Other identifiable intangibles

50,115

47,567

37,529

39,752

17,811

 

Bank owned life insurance

306,134

305,888

305,476

305,016

301,982

 

Other real estate owned

9,555

15,048

6,245

8,997

9,300

 

Other assets

284,796

310,300

254,482

231,144

238,379

 

Total Assets

$           18,033,513

$           17,879,081

$           17,059,865

$           17,094,283

$           16,918,568

 

Liabilities

           

Deposits:

           

  Demand:  Noninterest bearing

$             4,078,027

$             4,284,521

$             4,076,890

$             3,976,039

$             3,822,216

 

                  Interest bearing

6,283,089

5,753,655

5,495,517

5,697,444

5,898,269

 

  Savings

1,837,197

1,836,148

1,794,229

1,820,013

1,801,128

 

  Other time

2,247,521

2,198,092

2,021,213

2,045,828

2,041,897

 

Total deposits

14,445,834

14,072,416

13,387,849

13,539,324

13,563,510

 

Securities sold under agreement to repurchase

457,875

447,727

427,583

416,839

445,840

 

Federal funds purchased

           

   and other short-term borrowing

664,056

953,137

918,153

875,641

667,546

 

Accrued interest payable

9,998

8,305

6,617

5,600

5,177

 

Long-term debt

5,826

17,403

33,196

33,147

34,433

 

Other liabilities

237,176

188,241

196,721

172,280

189,423

 

Total Liabilities

15,820,765

15,687,229

14,970,119

15,042,831

14,905,929

 

Shareholders' Equity

           

Common stock

248,810

250,752

246,635

247,120

247,189

 

Capital surplus

475,390

497,330

441,779

444,379

447,576

 

Accumulated other comprehensive loss

(78,255)

(91,541)

(89,244)

(88,962)

(71,205)

 

Retained earnings

1,566,803

1,535,311

1,490,576

1,448,915

1,389,079

 

Total Shareholders' Equity

2,212,748

2,191,852

2,089,746

2,051,452

2,012,639

 

Total Liabilities & Shareholders' Equity

$           18,033,513

$           17,879,081

$           17,059,865

$           17,094,283

$           16,918,568

 

 

 

BancorpSouth Bank

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

                     
       

Quarter Ended

         
 

Mar-19

 

Dec-18

 

Sep-18

 

Jun-18

 

Mar-18

 

INTEREST REVENUE:

                   

Loans and leases

$  163,679

 

$  162,237

 

$   147,404

 

$  143,029

 

$  136,568

 

Deposits with other banks

1,516

 

457

 

243

 

331

 

664

 

Federal funds sold, securities purchased

                   

   under agreement to resell, FHLB and 

                   

      other equity investments

374

 

344

 

295

 

226

 

191

 

Available-for-sale securities:

                   

    Taxable

12,437

 

12,208

 

11,529

 

11,554

 

11,313

 

    Tax-exempt

2,121

 

2,308

 

2,394

 

2,435

 

2,504

 

Loans held for sale

1,006

 

1,296

 

1,293

 

1,715

 

955

 

        Total interest revenue

181,133

 

178,850

 

163,158

 

159,290

 

152,195

 
                     

INTEREST EXPENSE:

                   

Interest bearing demand

13,139

 

10,191

 

8,113

 

6,075

 

5,278

 

Savings

1,338

 

1,367

 

1,087

 

667

 

584

 

Other time

8,065

 

6,967

 

5,399

 

4,862

 

4,457

 

Federal funds purchased and securities sold

                   

   under agreement to repurchase

1,775

 

2,563

 

2,071

 

1,898

 

1,341

 

Short-term and long-term debt

4,262

 

4,880

 

4,353

 

3,660

 

2,455

 

Other

-

 

1

 

-

 

-

 

2

 

        Total interest expense

28,579

 

25,969

 

21,023

 

17,162

 

14,117

 
                     

        Net interest revenue

152,554

 

152,881

 

142,135

 

142,128

 

138,078

 

  Provision for credit losses

500

 

1,000

 

-

 

2,500

 

1,000

 

        Net interest revenue, after provision for

                   

          credit losses

152,054

 

151,881

 

142,135

 

139,628

 

137,078

 
                     

NONINTEREST REVENUE:

                   

Mortgage banking

2,040

 

(3,275)

 

6,517

 

6,904

 

13,265

 

Credit card, debit card and merchant fees

8,874

 

9,941

 

9,857

 

10,530

 

9,564

 

Deposit service charges

10,766

 

11,699

 

11,278

 

10,767

 

10,901

 

Security gains(losses), net

39

 

162

 

(54)

 

(2)

 

27

 

Insurance commissions

30,180

 

27,981

 

31,705

 

32,965

 

29,130

 

Wealth management

5,635

 

5,534

 

6,016

 

5,745

 

5,697

 

Other

6,686

 

6,989

 

6,297

 

5,547

 

10,350

 

        Total noninterest revenue

64,220

 

59,031

 

71,616

 

72,456

 

78,934

 
                     

NONINTEREST EXPENSE:

                   

Salaries and employee benefits

97,228

 

92,013

 

89,646

 

91,451

 

91,197

 

Occupancy, net of rental income

11,551

 

12,107

 

11,690

 

11,103

 

10,804

 

Equipment

3,888

 

3,837

 

3,994

 

3,804

 

3,754

 

Deposit insurance assessments

2,740

 

1,866

 

2,954

 

3,129

 

2,360

 

Other

34,561

 

42,519

 

34,125

 

35,695

 

39,586

 

        Total noninterest expense

149,968

 

152,342

 

142,409

 

145,182

 

147,701

 

        Income before income taxes

66,306

 

58,570

 

71,342

 

66,902

 

68,311

 

Income tax expense

14,708

 

11,473

 

4,659

 

12,856

 

14,820

 

        Net income

$    51,598

 

$   47,097

 

$     66,683

 

$    54,046

 

$   53,491

 
                     

Net income per share: Basic

$       0.52

 

$       0.47

 

$        0.68

 

$       0.55

 

$       0.54

 

                                  Diluted

$       0.52

 

$       0.47

 

$        0.67

 

$       0.55

 

$       0.54

 

     

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

                   
 

Quarter Ended

 

Mar-19

 

Dec-18

 

Sep-18

 

Jun-18

 

Mar-18

LOAN AND LEASE PORTFOLIO:

                 

Commercial and industrial

1,728,897

 

$   1,766,515

 

$   1,617,293

 

$    1,668,174

 

$  1,695,718

Real estate

                 

   Consumer mortgages

3,242,769

 

3,259,390

 

3,184,674

 

3,143,215

 

3,000,479

   Home equity

663,120

 

663,572

 

655,213

 

653,450

 

655,634

   Agricultural

309,931

 

318,038

 

315,842

 

315,828

 

313,470

   Commercial and industrial-owner occupied

2,128,763

 

2,267,902

 

2,157,177

 

2,147,176

 

2,102,493

   Construction, acquisition and development

1,322,671

 

1,286,786

 

1,103,532

 

1,346,370

 

1,377,153

   Commercial real estate

3,169,117

 

3,026,214

 

2,923,791

 

2,636,533

 

2,640,503

Credit cards

99,260

 

105,569

 

102,353

 

102,790

 

102,114

All other

406,531

 

418,163

 

390,120

 

404,578

 

409,285

     Total loans

$ 13,071,059

 

$ 13,112,149

 

$ 12,449,995

 

$  12,418,114

 

$ 12,296,849

                   

ALLOWANCE FOR CREDIT LOSSES:

                 

Balance, beginning of period

$     120,070

 

$      121,019

 

$     119,920

 

$       119,434

 

$     118,200

                   

Loans and leases charged-off:

                 

Commercial and industrial

(819)

 

(1,042)

 

(322)

 

(1,057)

 

(484)

Real estate

                 

   Consumer mortgages

(185)

 

(298)

 

(210)

 

(366)

 

(134)

   Home equity

(353)

 

(237)

 

(227)

 

(107)

 

(143)

   Agricultural

-

 

(6)

 

(6)

 

(6)

 

(12)

   Commercial and industrial-owner occupied

-

 

(237)

 

(315)

 

(279)

 

(41)

   Construction, acquisition and development

-

 

(142)

 

(41)

 

(66)

 

(163)

   Commercial real estate

(3,815)

 

(594)

 

-

 

(946)

 

(35)

Credit cards

(955)

 

(816)

 

(596)

 

(830)

 

(794)

All other

(831)

 

(761)

 

(941)

 

(551)

 

(725)

     Total loans charged-off

(6,958)

 

(4,133)

 

(2,658)

 

(4,208)

 

(2,531)

                   

Recoveries:

                 

Commercial and industrial

360

 

504

 

1,558

 

684

 

372

Real estate

                 

   Consumer mortgages

1,081

 

419

 

522

 

361

 

95

   Home equity

75

 

86

 

58

 

72

 

333

   Agricultural

4

 

304

 

20

 

10

 

79

   Commercial and industrial-owner occupied

100

 

40

 

413

 

46

 

80

   Construction, acquisition and development

714

 

197

 

564

 

308

 

1,262

   Commercial real estate

78

 

139

 

200

 

149

 

53

Credit cards

218

 

245

 

198

 

367

 

220

All other

257

 

250

 

224

 

197

 

271

     Total recoveries

2,887

 

2,184

 

3,757

 

2,194

 

2,765

                   

Net (charge-offs) recoveries 

(4,071)

 

(1,949)

 

1,099

 

(2,014)

 

234

                   

Provision charged to operating expense

500

 

1,000

 

-

 

2,500

 

1,000

Balance, end of period

$     116,499

 

$      120,070

 

$     121,019

 

$       119,920

 

$     119,434

                   

Average loans for period

$ 13,078,221

 

$ 13,063,422

 

$ 12,433,701

 

$ 12,334,756

 

$ 12,084,020

                   

Ratio:

                 

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

0.12%

 

0.06%

 

(0.04%)

 

0.07%

 

(0.01%)

  

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

                   
 

Quarter Ended

 

Mar-19

 

Dec-18

 

Sep-18

 

Jun-18

 

Mar-18

NON-PERFORMING ASSETS

                 

NON-PERFORMING LOANS AND LEASES:

                 

  Nonaccrual Loans and Leases

                 

    Commercial and industrial

$    10,431

 

$       10,537

 

$       11,158

 

$    11,090

 

$       11,122

    Real estate

                 

       Consumer mortgages

25,680

 

23,932

 

23,015

 

22,588

 

26,832

       Home equity

2,259

 

2,686

 

2,349

 

2,446

 

2,587

       Agricultural

6,263

 

4,617

 

1,603

 

1,536

 

6,225

       Commercial and industrial-owner occupied

8,782

 

8,637

 

7,927

 

12,275

 

12,210

       Construction, acquisition and development

2,710

 

3,124

 

1,410

 

1,563

 

2,223

       Commercial real estate

12,283

 

16,590

 

7,787

 

8,265

 

3,597

    Credit cards

160

 

173

 

120

 

104

 

136

    All other

381

 

259

 

163

 

178

 

371

         Total nonaccrual loans and leases

$    68,949

 

$       70,555

 

$       55,532

 

$    60,045

 

$       65,303

                   

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

8,471

 

18,695

 

2,934

 

6,335

 

6,519

  Restructured Loans and Leases, Still Accruing

9,874

 

7,498

 

7,564

 

6,982

 

9,681

     Total non-performing loans and leases

$    87,294

 

$       96,748

 

$       66,030

 

$    73,362

 

$       81,503

                   

OTHER REAL ESTATE OWNED:

9,686

 

9,276

 

4,301

 

7,828

 

9,362

                   

Total Non-performing Assets

$    96,980

 

$      106,024

 

$       70,331

 

$    81,190

 

$       90,865

                   

  BXS originated assets

$    77,110

 

$       72,527

 

$       66,062

 

$    75,980

 

$       84,586

  Assets acquired during 2018

19,870

 

33,497

 

4,269

 

5,210

 

6,279

Total Non-performing Assets

$    96,980

 

$      106,024

 

$       70,331

 

$    81,190

 

$       90,865

                   

Additions to Nonaccrual Loans and Leases During the Quarter

$    15,419

 

$       28,572

 

$       12,217

 

$    16,902

 

$       16,641

                   

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

                 

    BXS originated loans

$    34,591

 

$       43,922

 

$       33,093

 

$    27,225

 

$       29,422

    Loans acquired during 2018

10,840

 

9,769

 

11,294

 

11,810

 

3,425

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

$    45,431

 

$       53,691

 

$       44,387

 

$    39,035

 

$       32,847

                   

Credit Quality Ratios:

                 

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

0.02%

 

0.03%

 

0.00%

 

0.08%

 

0.03%

Allowance for credit losses to net loans and leases

0.89%

 

0.92%

 

0.97%

 

0.97%

 

0.97%

Allowance for credit losses to non-performing loans and leases

133.46%

 

124.11%

 

183.28%

 

163.46%

 

146.54%

Allowance for credit losses to non-performing assets

120.13%

 

113.25%

 

172.07%

 

147.70%

 

131.44%

Non-performing loans and leases to net loans and leases

0.67%

 

0.74%

 

0.53%

 

0.59%

 

0.66%

Non-performing assets to net loans and leases

0.74%

 

0.81%

 

0.56%

 

0.65%

 

0.74%

         

 

BancorpSouth Bank

       

Selected Loan Data

       

(Dollars in thousands)

       

(Unaudited)

       
                   
 

March 31, 2019

   

Special

       

Purchased

   
 

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Credit Impaired

 

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

                 

Commercial and industrial

$   1,667,040

$                -

$       45,639

$        407

$                -

$    5,598

$        10,213

 

$   1,728,897

Real estate

                 

   Consumer mortgages

3,183,452

-

54,091

379

-

4,847

-

 

3,242,769

   Home equity

655,726

-

7,171

-

-

223

-

 

663,120

   Agricultural

296,177

-

9,806

-

-

1,594

2,354

 

309,931

   Commercial and industrial-owner occupied

2,067,541

-

53,467

-

-

3,422

4,333

 

2,128,763

   Construction, acquisition and development

1,292,434

534

23,889

-

-

-

5,814

 

1,322,671

   Commercial real estate

3,096,319

-

62,937

-

-

9,861

-

 

3,169,117

Credit cards

99,260

-

-

-

-

-

-

 

99,260

All other

399,393

-

7,138

-

-

-

-

 

406,531

     Total loans

$ 12,757,342

$            534

$      264,138

$        786

$                -

$  25,545

$        22,714

 

$ 13,071,059

                   

  BXS originated loans

$ 11,537,493

$            534

$      205,512

$        786

$              -

$  25,545

$              -

 

$ 11,769,870

  Loans acquired during 2018

1,219,849

-

58,626

-

-

-

22,714

 

1,301,189

     Total Loans

$ 12,757,342

$            534

$      264,138

$        786

$              -

$  25,545

$        22,714

 

$ 13,071,059

                   
 

December 31, 2018

   

Special

       

Purchased

   
 

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Credit Impaired

 

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

                 

Commercial and industrial

$   1,700,639

$                -

$       50,174

$        361

$                -

$    5,263

$        10,078

 

$   1,766,515

Real estate

                 

   Consumer mortgages

3,197,333

-

57,660

383

-

3,560

454

 

3,259,390

   Home equity

656,435

-

6,911

-

-

226

-

 

663,572

   Agricultural

303,035

-

12,248

-

-

184

2,571

 

318,038

   Commercial and industrial-owner occupied

2,181,778

-

77,941

-

-

3,551

4,632

 

2,267,902

   Construction, acquisition and development

1,248,823

-

32,021

-

-

-

5,942

 

1,286,786

   Commercial real estate

2,944,036

-

68,615

-

-

13,563

-

 

3,026,214

Credit cards

105,569

-

-

-

-

-

-

 

105,569

All other

412,095

-

6,068

-

-

-

-

 

418,163

     Total loans

$ 12,749,743

$                -

$      311,638

$        744

$                -

$  26,347

$        23,677

 

$ 13,112,149

                   

  BXS originated loans

$ 11,415,919

$              -

$      230,627

$        744

$              -

$  26,347

$              -

 

$ 11,673,637

  Loans acquired during 2018

1,333,824

-

81,011

-

-

-

23,677

 

1,438,512

     Total Loans

$ 12,749,743

$              -

$      311,638

$        744

$              -

$  26,347

$        23,677

 

$ 13,112,149

        

 

BancorpSouth Bank

Geographical Information

(Dollars in thousands)

(Unaudited)

                   
 

March 31, 2019

 

Alabama

               
 

and Florida

               
 

Panhandle

Arkansas

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:

                 

Commercial and industrial

$    107,849

$    134,217

$    279,971

$   571,164

$      75,330

$      96,737

$    438,733

$      24,896

$   1,728,897

Real estate

                 

   Consumer mortgages

455,363

336,318

334,993

882,495

91,083

322,987

759,641

59,889

3,242,769

   Home equity

102,371

47,044

91,444

234,765

19,219

144,165

24,112

-

663,120

   Agricultural

9,091

82,731

35,127

69,008

6,411

12,293

95,260

10

309,931

   Commercial and industrial-owner occupied

199,702

210,794

303,963

684,504

52,019

139,580

538,201

-

2,128,763

   Construction, acquisition and development

117,580

55,240

89,374

244,148

20,284

170,364

625,681

-

1,322,671

   Commercial real estate

266,576

369,857

369,337

727,690

201,378

217,449

1,015,812

1,018

3,169,117

Credit cards

-

-

-

-

-

-

-

99,260

99,260

All other

43,036

38,563

24,973

182,213

3,945

18,513

89,734

5,554

406,531

     Total loans

$ 1,301,568

$ 1,274,764

$ 1,529,182

$ 3,595,987

$    469,669

$ 1,122,088

$ 3,587,174

$    190,627

$ 13,071,059

                   

NON-PERFORMING LOANS AND LEASES:

                 

Commercial and industrial

$          399

$          279

704

$       3,678

$          951

$          968

$       5,653

$          430

$       13,062

Real estate

                 

   Consumer mortgages

2,508

3,105

5,753

12,633

233

2,291

3,502

102

30,127

   Home equity

383

34

168

774

230

742

47

-

2,378

   Agricultural

50

835

182

1,694

-

-

3,806

-

6,567

   Commercial and industrial-owner occupied

240

399

1,606

3,340

-

868

8,758

-

15,211

   Construction, acquisition and development

191

238

105

727

-

86

1,390

-

2,737

   Commercial real estate

100

467

3,498

851

-

-

10,594

-

15,510

Credit cards

-

-

-

-

-

-

-

1,191

1,191

All other

1

139

1

84

-

132

151

3

511

     Total loans

$       3,872

$       5,496

$      12,017

$     23,781

$       1,414

$       5,087

$      33,901

$       1,726

$       87,294

                   

NON-PERFORMING LOANS AND LEASES

                 

   AS A PERCENTAGE OF OUTSTANDING:

                 

Commercial and industrial

0.37%

0.21%

0.25%

0.64%

1.26%

1.00%

1.29%

1.73%

0.76%

Real estate

                 

   Consumer mortgages

0.55%

0.92%

1.72%

1.43%

0.26%

0.71%

0.46%

0.17%

0.93%

   Home equity

0.37%

0.07%

0.18%

0.33%

1.20%

0.51%

0.19%

N/A

0.36%

   Agricultural

0.55%

1.01%

0.52%

2.45%

0.00%

0.00%

4.00%

0.00%

2.12%

   Commercial and industrial-owner occupied

0.12%

0.19%

0.53%

0.49%

0.00%

0.62%

1.63%

N/A

0.71%

   Construction, acquisition and development

0.16%

0.43%

0.12%

0.30%

0.00%

0.05%

0.22%

N/A

0.21%

   Commercial real estate

0.04%

0.13%

0.95%

0.12%

0.00%

0.00%

1.04%

0.00%

0.49%

Credit cards

N/A

N/A

N/A

N/A

N/A

N/A

N/A

1.20%

1.20%

All other

0.00%

0.36%

0.00%

0.05%

0.00%

0.71%

0.17%

0.05%

0.13%

     Total loans

0.30%

0.43%

0.79%

0.66%

0.30%

0.45%

0.95%

0.91%

0.67%

     

 

BancorpSouth Bank

 

Acquired Loan Information

 

(Dollars in thousands)

 

(Unaudited)

 
         
         
 

Quarter Ended March 31, 2019

 
         
 

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

$            1,279,296

$                30,793

$     1,310,089

 

Fair value of loans acquired during the period

-

-

-

 

Changes in acquired loans

(110,337)

(8,079)

(118,416)

 

Net book value of acquired loans at end of period

$            1,168,959

$                22,714

$     1,191,673

 
         
         

Loan mark on acquired loans at beginning of period

$               (13,819)

$              (23,547)

$        (37,366)

 

Loan mark recorded on loans acquired during the period

-

-

-

 

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

-

1,997

1,997

 

Net accretion recognized on acquired loans

2,570

2,017

4,587

 

Remaining loan mark on acquired loans*

$               (11,249)

$              (19,533)

$        (30,782)

 
         
 

Quarter Ended December 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

$              830,831

$                 5,108

$       835,939

 

Fair value of loans acquired during the period

597,609

26,134

623,743

 

Changes in acquired loans

(149,144)

(449)

(149,593)

 

Net book value of acquired loans at end of period

$            1,279,296

$                30,793

$     1,310,089

 
         
         

Loan mark on acquired loans at beginning of period

$                (9,414)

$                (3,954)

$        (13,368)

 

Loan mark recorded on loans acquired during the period

(8,059)

(20,662)

(28,721)

 

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

-

545

545

 

Net accretion recognized on acquired loans

3,654

524

4,178

 

Remaining loan mark on acquired loans

$               (13,819)

$              (23,547)

$        (37,366)

 
         
         
 

Quarter Ended

Quarter Ended

Quarter Ended

 
 

3/31/2019

12/31/2018

9/30/2018

 

Loan yield, as reported

5.09%

4.94%

4.72%

 
         

Loan yield, excluding net accretion on acquired loans

4.95%

4.83%

4.64%

 
         

Net interest margin, as reported

3.86%

3.80%

3.67%

 
         

Net interest margin, excluding net accretion on acquired loans 

3.74%

3.71%

3.62%

 
         
         

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 $1.1 million in accretable yield as of March 31, 2019
compared to $1.9 million in accretable yield as of December 31, 2018. In addition, the same loans include $18.4 million in nonaccretable difference as
of March 31, 2019 compared to $21.7 million as of December 31, 2018.

  

 

BancorpSouth Bank

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

                   
 

Quarter Ended

 

Mar-19

 

Dec-18

 

Sep-18

 

Jun-18

 

Mar-18

NONINTEREST REVENUE:

                 

Mortgage banking excl. MSR and MSR Hedge market value adj

$      6,909

 

$         4,789

 

$         5,045

 

$      7,105

 

$         7,732

MSR and MSR Hedge market value adjustment

(4,869)

 

(8,064)

 

1,472

 

(201)

 

5,533

Credit card, debit card and merchant fees

8,874

 

9,941

 

9,857

 

10,530

 

9,564

Deposit service charges

10,766

 

11,699

 

11,278

 

10,767

 

10,901

Securities gains, net

39

 

162

 

(54)

 

(2)

 

27

Insurance commissions

30,180

 

27,981

 

31,705

 

32,965

 

29,130

Trust income

3,788

 

3,681

 

3,742

 

3,850

 

3,848

Annuity fees

265

 

218

 

276

 

357

 

297

Brokerage commissions and fees

1,582

 

1,635

 

1,998

 

1,538

 

1,552

Bank-owned life insurance

1,822

 

3,636

 

2,842

 

3,259

 

1,947

Other miscellaneous income

4,864

 

3,353

 

3,455

 

2,288

 

8,403

     Total noninterest revenue

$    64,220

 

$       59,031

 

$       71,616

 

$    72,456

 

$       78,934

                   

NONINTEREST EXPENSE:

                 

Salaries and employee benefits

$    97,228

 

$       92,013

 

$       89,646

 

$    91,451

 

$       91,197

Occupancy, net of rental income

11,551

 

12,107

 

11,690

 

11,103

 

10,804

Equipment

3,888

 

3,837

 

3,994

 

3,804

 

3,754

Deposit insurance assessments

2,740

 

1,866

 

2,954

 

3,129

 

2,360

Advertising

947

 

1,440

 

1,522

 

1,226

 

855

Foreclosed property expense

624

 

1,113

 

920

 

997

 

366

Telecommunications

1,340

 

1,364

 

1,318

 

1,327

 

1,217

Public relations

765

 

834

 

795

 

829

 

794

Data processing

8,442

 

8,231

 

8,113

 

7,970

 

7,360

Computer software

3,699

 

3,840

 

3,652

 

3,624

 

3,336

Amortization of intangibles

1,985

 

2,040

 

1,438

 

1,559

 

1,602

Legal

605

 

1,082

 

657

 

1,568

 

691

Merger expense

891

 

4,456

 

942

 

1,911

 

5,727

Postage and shipping

1,412

 

1,214

 

1,238

 

1,151

 

1,237

Other miscellaneous expense

13,851

 

16,905

 

13,530

 

13,533

 

16,401

     Total noninterest expense

$  149,968

 

$      152,342

 

$      142,409

 

$  145,182

 

$      147,701

                   

INSURANCE COMMISSIONS:

                 

Property and casualty commissions

$    21,238

 

$       19,242

 

$       21,907

 

$    23,041

 

$       20,100

Life and health commissions

5,982

 

5,892

 

6,162

 

6,753

 

5,943

Risk management income

587

 

558

 

635

 

605

 

750

Other

2,373

 

2,289

 

3,001

 

2,566

 

2,337

     Total insurance commissions

$    30,180

 

$       27,981

 

$       31,705

 

$    32,965

 

$       29,130

 

 

BancorpSouth Bank

Selected Additional Information

(Dollars in thousands)

(Unaudited)

           
 

Quarter Ended

 

Mar-19

Dec-18

Sep-18

Jun-18

Mar-18

MORTGAGE SERVICING RIGHTS:

         

Fair value, beginning of period

$      69,822

$       77,796

$       75,614

$      75,206

$       69,190

Additions to mortgage servicing rights:

         

   Originations of servicing assets

1,976

2,840

3,520

3,516

2,683

Changes in fair value:

         

   Due to payoffs/paydowns

(2,052)

(2,465)

(2,984)

(2,916)

(2,382)

   Due to change in valuation inputs or

         

     assumptions used in the valuation model

(5,103)

(8,348)

1,646

(191)

5,716

   Other changes in fair value

-

(1)

-

(1)

(1)

Fair value, end of period

$      64,643

$       69,822

$       77,796

$      75,614

$       75,206

           

MORTGAGE BANKING REVENUE:

         

Production revenue:

         

   Origination

$       4,068

$         2,207

$         3,161

$       5,295

$         5,239

   Servicing

4,893

5,047

4,868

4,726

4,875

   Payoffs/Paydowns

(2,052)

(2,465)

(2,984)

(2,916)

(2,382)

     Total production revenue

6,909

4,789

5,045

7,105

7,732

Market value adjustment on MSR

(5,103)

(8,348)

1,646

(191)

5,716

Market value adjustment on MSR Hedge

234

284

(174)

(10)

(183)

Total mortgage banking revenue

$       2,040

$        (3,275)

$         6,517

$       6,904

$       13,265

           
           
           

Mortgage loans serviced

$ 6,718,236

$   6,686,475

$   6,628,445

$ 6,579,444

$   6,532,950

MSR/mtg loans serviced

0.96%

1.04%

1.17%

1.15%

1.15%

           

AVAILABLE-FOR-SALE SECURITIES, at fair value

         

U.S. Government agencies

$ 2,179,699

$   2,200,158

$   2,260,949

$ 2,235,238

$   2,385,962

U.S. Government agency issued residential

         

   mortgage-back securities

141,542

136,846

138,624

141,443

139,148

U.S. Government agency issued commercial

         

   mortgage-back securities

98,941

107,841

107,506

122,974

124,041

Obligations of states and political subdivisions

272,317

304,343

319,280

329,099

340,616

Total available-for-sale securities

$ 2,692,499

$   2,749,188

$   2,826,359

$ 2,828,754

$   2,989,767

 

 

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

     

3/31/2019

 

12/31/2018

 

9/30/2018

 

6/30/2018

 

3/31/2018

                       

Net income

 

$      51,598

 

$   47,097

 

$          66,683

 

$          54,046

 

$          53,491

Plus:

Merger expense, net of tax

 

669

 

3,345

 

707

 

1,434

 

4,298

 

Tax-related matters

 

-

 

-

 

-

 

-

 

-

Less:

Security gains(losses), net of tax

 

29

 

122

 

(40)

 

(2)

 

20

 

Tax-related matters

 

-

 

-

 

11,288

 

-

 

-

Net operating income

 

$      52,238

 

$   50,320

 

$          56,142

 

$          55,482

 

$          57,769

                       

Less:

MSR market value adjustment, net of tax

 

(3,654)

 

(6,052)

 

1,103

 

(151)

 

4,153

Net operating income-excluding MSR

 

$      55,892

 

$   56,372

 

$          55,039

 

$          55,633

 

$          53,616

                       
                       

Reconciliation of Total Operating Expense to Total Noninterest Expense:

           
                       

Total noninterest expense

 

$    149,968

 

$ 152,342

 

$        142,409

 

$         145,182

 

$         147,701

Less:

Merger expense

 

891

 

4,456

 

942

 

1,911

 

5,727

Total operating expense

 

$    149,077

 

$ 147,886

 

$        141,467

 

$         143,271

 

$         141,974

 

 

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

     

3/31/2019

 

12/31/2018

 

9/30/2018

 

6/30/2018

 

3/31/2018

Tangible assets

                   

Total assets

 

$ 18,314,183

 

$  18,001,540

 

$  17,249,175

 

$ 17,222,491

 

$  17,185,772

Less:  

Goodwill

 

699,073

 

695,720

 

590,292

 

588,004

 

580,900

 

Other identifiable intangible assets

 

49,396

 

50,896

 

36,475

 

39,031

 

40,590

Total tangible assets

 

$ 17,565,714

 

$  17,254,924

 

$  16,622,408

 

$ 16,595,456

 

$  16,564,282

                       

Tangible shareholders' equity

                   

Total shareholders' equity

 

$   2,226,585

 

$    2,205,737

 

$    2,116,375

 

$   2,072,083

 

$    2,060,487

Less:

Goodwill

 

699,073

 

695,720

 

590,292

 

588,004

 

580,900

 

Other identifiable intangible assets

 

49,396

 

50,896

 

36,475

 

39,031

 

40,590

Total tangible shareholders' equity

 

$   1,478,116

 

$    1,459,121

 

$    1,489,608

 

$   1,445,048

 

$    1,438,997

                       

Total average assets

 

$ 18,033,513

 

$  17,879,081

 

$  17,059,865

 

$ 17,094,283

 

$  16,918,568

Total shares of common stock outstanding

 

99,066,856

 

99,797,271

 

98,525,516

 

98,700,509

 

99,636,779

Average shares outstanding-diluted

 

99,717,119

 

99,720,219

 

98,819,905

 

99,057,054

 

98,942,268

                       

Tangible shareholders' equity to tangible assets (1)

 

8.41%

 

8.46%

 

8.96%

 

8.71%

 

8.69%

Return on tangible equity (2)

 

14.16%

 

12.81%

 

17.76%

 

15.00%

 

15.08%

Operating return on tangible equity-excluding MSR (3)

 

15.34%

 

15.33%

 

14.66%

 

15.44%

 

15.11%

Operating return on average assets-excluding MSR (4)

 

1.26%

 

1.25%

 

1.28%

 

1.31%

 

1.29%

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

 

10.24%

 

10.20%

 

10.45%

 

10.88%

 

10.80%

Tangible book value per share (6)

 

$         14.92

 

$          14.62

 

$          15.12

 

$         14.64

 

$         14.44

Operating earnings per share (7)

 

$           0.52

 

$            0.51

 

$            0.57

 

$           0.56

 

$           0.58

Operating earnings per share-excluding MSR (8)

 

$           0.56

 

$            0.57

 

$            0.56

 

$           0.56

 

$           0.54

                       
                       

(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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