BancorpSouth Announces Second Quarter 2020 Financial Results

TUPELO, Miss., July 20, 2020 /PRNewswire/ -- BancorpSouth Bank (NYSE: BXS) (the "Company") today announced financial results for the quarter ended June 30, 2020.

Highlights for the second quarter of 2020 included:

  • Achieved quarterly net income available to common shareholders of $58.8 million, or $0.57 per diluted common share, and net operating income available to common shareholders – excluding MSR – of $60.9 million, or $0.59 per diluted common share.
     
  • Recorded provision for credit losses of $20.0 million primarily as a result of the continued deterioration in certain economic factors included in the Company's allowance for credit losses methodology resulting from the coronavirus ("COVID-19") pandemic.
     
  • Generated $102.1 million in pre-tax pre-provision net revenue, or 1.81 percent of average assets on an annualized basis, which represents an increase from 1.73 percent for the second quarter of 2019 and an increase from 1.74 percent for the first quarter of 2020.
     
  • Originated and funded approximately 14,500 loans totaling approximately $1.2 billion under the U.S. Small Business Association ("SBA") Paycheck Protection Program (the "PPP").
       
  • Generated total deposit growth of $2.3 billion for the quarter; excluding the estimated impact of additional customer liquidity associated with the PPP loans and government stimulus payments,  deposit growth totaled approximately $1.0 billion, or 24 percent on an annualized basis.
     
  • Record mortgage production volume of $989.0 million contributed to mortgage production and servicing revenue of $31.9 million; earnings were negatively impacted by a pre-tax mortgage servicing rights ("MSR") valuation adjustment of $2.4 million.
     
  • Maintained strong regulatory capital metrics; estimated total risk-based capital of 13.79 percent at June 30, 2020 compared to 11.28 percent at June 30, 2019.

"We are very pleased with our second quarter financial results, particularly in light of the economic and industry headwinds associated with the continuation of the COVID-19 pandemic," remarked Dan Rollins, Chairman and Chief Executive Officer.  "We had hoped to be taking steps toward a return to normal operations by now but COVID-19 case counts have continued to rise across our footprint.  Protecting the health of both our teammates and customers has been, and will continue to be, our top priority.  While we have not yet seen increases in charge-offs or significant deterioration in other credit quality metrics, we did record a provision for credit losses of $20.0 million as a result of the deterioration of certain economic data points within our reserve methodology compared to March 31, 2020.  Outside of the additional provisioning, our Company continues to perform at a very high level.   We generated $102.1 million in pre-tax pre-provision net revenue for the quarter, or 1.81 percent of average assets on an annualized basis." 

"As we look more specifically at our second quarter performance, our efforts were largely focused on assisting our customers with the SBA's Paycheck Protection Program.   A tremendous effort was required of all of our teammates to originate and fund approximately 14,500 loans totaling $1.2 billion in a very short period of time.  The additional customer liquidity created as a result of the PPP and other government stimulus programs contributed to tremendous deposit growth this quarter.  Excluding the estimated impact of these programs, deposit growth was very strong totaling approximately $1.0 billion, or 24 percent on an annualized basis. Finally, our mortgage operation had a record quarter.  Production volume totaled almost $1 billion, which contributed to total production and servicing revenue of $31.9 million.  While elevated refinance activity has certainly benefitted our mortgage production, new purchase money volume continues to hold strong."

Earnings Summary

The Company reported net income available to common shareholders of $58.8 million, or $0.57 per diluted common share, for the second quarter of 2020, compared with net income available to common shareholders of $53.1 million, or $0.53 per diluted common share, for the second quarter of 2019 and net income available to common shareholders of $21.9 million, or $0.21 per diluted common share, for the first quarter of 2020.  The Company reported net operating income available to common shareholders – excluding MSR – of $60.9 million, or $0.59 per diluted common share, for the second quarter of 2020, compared with $62.0 million, or $0.61 per diluted common share, for the second quarter of 2019 and $34.4 million, or $0.33 per diluted common share, for the first quarter of 2020. 

The Company reported pre-tax pre-provision net revenue of $102.1 million, or 1.81 percent of average assets on an annualized basis, compared to $80.6 million, or 1.73 percent of average assets on an annualized basis, for the second quarter of 2019 and $91.7 million, or 1.74 percent of average assets, for the first quarter of 2020.

Net Interest Revenue

Net interest revenue was $170.6 million for the second quarter of 2020, an increase of 6.6 percent from $160.0 million for the second quarter of 2019 and an increase of 1.8 percent from $167.5 million for the first quarter of 2020.  The fully taxable equivalent net interest margin was 3.35 percent for the second quarter of 2020, compared with 3.87 percent for the second quarter of 2019 and 3.54 percent for the first quarter of 2020.  Yields on net loans and leases were 4.59 percent for the second quarter of 2020, compared with 5.12 percent for the second quarter of 2019 and 5.00 percent for the first quarter of 2020, while yields on total interest earning assets were 3.87 percent for the second quarter of 2020, compared with 4.61 percent for the second quarter of 2019 and 4.27 percent for the first quarter of 2020.  The net interest margin, excluding accretable yield, was 3.30 percent for the second quarter of 2020, compared with 3.79 percent for the second quarter of 2019 and 3.48 percent for the first quarter of 2020, while yields on net loans and leases, excluding accretable yield, were 4.53 percent for the second quarter of 2020, compared with 5.02 percent for the second quarter of 2019 and 4.93 percent for the first quarter of 2020. 

The $1.2 billion in PPP loans that closed during the quarter had an adverse impact of approximately 14 basis points on the yield on net loans and leases, excluding accretable yield, and 5 basis points on the net interest margin, excluding accretable yield, for the second quarter of 2020.  In addition, the earning asset mix shift resulting from the deposit growth above and beyond the PPP loan growth was responsible for approximately 10 basis points of margin decline compared to the first quarter.  The average cost of deposits was 0.50 percent for the second quarter of 2020, compared with 0.68 percent for the second quarter of 2019 and 0.67 percent for the first quarter of 2020.

Balance Sheet Activity

Loans and leases, net of unearned income, increased $1.2 billion during the second quarter of 2020.  Deposits increased $2.3 billion during the second quarter of 2020.  There were no acquisitions during the second quarter of 2020.  The loan growth for the quarter was primarily attributable to the closing of $1.2 billion in PPP loans.  Otherwise, loans and leases were essentially flat on an organic basis for the quarter.  The additional customer liquidity created by the PPP and other government stimulus programs, also aided in the deposit growth total for the quarter.  Excluding the impact of these programs, organic deposit growth for the quarter totaled approximately $1.0 billion, or 24.0 percent on an annualized basis. The elevated deposit growth resulted in an increase of approximately $800 million in additional securities and lower yielding assets for the quarter.

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the second quarter of 2020 reflect a provision for credit losses of $20.0 million, compared with a provision of $0.5 million for the second quarter of 2019 and a provision of $46.0 million for the first quarter of 2020.  Net charge-offs for the second quarter of 2020 were $1.2 million, compared with net charge-offs of $1.3 million for the second quarter of 2019 and net charge-offs of $13.7 million for the first quarter of 2020.  Net charge-offs for the second quarter of 2020 consisted primarily of acquired loans.  Of the $13.7 million in net charge-offs for the first quarter of 2020, $12.7 million were acquired loans that were previously recorded as purchased credit impaired prior to the adoption of the Current Expected Credit Losses Methodology ("CECL") and were subsequently classified as purchased credit deteriorated loans.  The allowance for credit losses was $237.0 million, or 1.54 percent of net loans and leases, at June 30, 2020, compared with $115.7 million, or 0.85 percent of net loans and leases, at June 30, 2019, and $218.2 million, or 1.53 percent of net loans and leases, at March 31, 2020.   The allowance for credit losses coverage, excluding the impact of PPP loans, was 1.67 percent at June 30, 2020.   

The Company implemented CECL effective January 1, 2020.  The increase in the allowance for credit losses resulting from this implementation was $62.6 million.  Of this increase, $22.6 million was a result of the reclassification of non-accretable difference on previously purchased credit impaired loans that are now considered purchased credit deteriorated loans, while $40.0 million was the result primarily of the requirement of estimating credits losses over the life of the loan portfolio.  The adoption of this standard impacted the comparability of credit quality and coverage metrics to all periods preceding January 1, 2020.

Total non-performing assets were $155.4 million, or 1.01 percent of net loans and leases, at June 30, 2020, compared with $96.0 million, or 0.70 percent of net loans and leases, at June 30, 2019, and $137.8 million, or 0.97 percent of net loans and leases, at March 31, 2020.  Other real estate owned was $7.2 million at June 30, 2020, compared with $6.2 million at June 30, 2019 and $9.2 million at March 31, 2020.

Noninterest Revenue

Noninterest revenue was $91.3 million for the second quarter of 2020, compared with $66.3 million for the second quarter of 2019 and $76.5 million for the first quarter of 2020.  These results include a negative MSR valuation adjustment of $2.4 million for the second quarter of 2020, compared with a negative MSR valuation adjustment of $8.8 million for the second quarter of 2019 and a negative MSR valuation adjustment of $11.1 million for the first quarter of 2020.  Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.   

Mortgage production and servicing revenue was $31.9 million for the second quarter of 2020, compared with $9.2 million for the second quarter of 2019 and $20.6 million for the first quarter of 2020.  Mortgage origination volume for the second quarter of 2020 was $989.0 million, compared with $495.5 million for the second quarter of 2019 and $477.1 million for the first quarter of 2020.  Home purchase money volume was $522.6 million for the first quarter of 2020, compared with $285.3 million for the second quarter of 2019 and $397.9 million for the first quarter of 2020.  Of the total mortgage origination volume for the second quarter of 2020, $251.7 million was portfolio loans, compared with $153.7 million for the second quarter of 2019 and $85.6 million for the first quarter of 2020.

Credit card, debit card, and merchant fee revenue was $9.1 million for the second quarter of 2020, compared with $10.2 million for the second quarter of 2019 and $9.2 million for the first quarter of 2020.  Deposit service charge revenue, was $7.6 million for the second quarter of 2020, compared with $11.1 million for the second quarter of 2019 and $11.7 million for the first quarter of 2020.  Credit card, debit card, and merchant fee revenue as well as deposit service charge revenue for the second quarter of 2020 were adversely impacted by the COVID-19 pandemic.  Wealth management revenue was $6.4 million for the second quarter of 2020, compared with $5.9 million for the second quarter of 2019 and $6.6 million for the first quarter of 2020.  Insurance commission revenue was $33.1 million for the second quarter of 2020, compared with $34.0 million for the second quarter of 2019 and $29.6 million for the first quarter of 2020.  Other noninterest revenue was $5.4 million for the second quarter of 2020, compared with $4.8 million for the second quarter of 2019 and $10.1 million for the first quarter of 2020.  Other noninterest revenue for the first quarter of 2020 included a $4.2 million gain associated with the sale of a book of business within the Company's insurance agency.

Noninterest Expense

Noninterest expense for the second quarter of 2020 was $162.5 million, compared with $157.7 million for the second quarter of 2019 and $168.0 million for the first quarter of 2020.  Salaries and employee benefits expense was $108.1 million for the second quarter of 2020, compared with $101.0 million for the second quarter of 2019 and $108.3 million for the first quarter of 2020.  Occupancy expense was $12.9 million for the second quarter of 2020, compared with $12.0 million for the second quarter of 2019 and $12.7 million for the first quarter of 2020.  Other noninterest expense was $34.8 million for the second quarter of 2020, compared with $38.1 million for the second quarter of 2019 and $40.8 million for the first quarter of 2020.  Additionally, merger-related expense for the second quarter of 2020 was $0.5 million, compared with merger-related expense of $3.1 million for the second quarter of 2019 and $4.5 million for the first quarter of 2020. 

Capital Management

The Company's ratio of shareholders' equity to assets was 11.76 percent at June 30, 2020, compared with 12.29 percent at June 30, 2019 and 12.75 percent at March 31, 2020.  The ratio of tangible common shareholders' equity to tangible assets was 7.44 percent at June 30, 2020, compared with 8.42 percent at June 30, 2019 and 7.99 percent at March 31, 2020.  The $1.2 billion in PPP loans had an adverse impact of approximately 44 basis points on tangible common shareholders' equity to tangible assets at June 30, 2020.

In November 2019, the Company completed an underwritten public offering of $300.0 million aggregate principal amount of its 4.125 percent Fixed-to-Floating Rate Subordinated Notes due November 20, 2029 (the "Notes") and an underwritten public offering of $172.5 million  of its 5.50 percent Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share (the "Series A Preferred Stock"). For additional details regarding the terms of the Notes, including those related to interest rates and interest payment dates, redemption, seniority, and maturity, and the terms of the Series A Preferred Stock, including those related to dividends and dividend payment dates, redemption, seniority, and maturity, please refer to the offering circulars related to each offering that the Company filed with the Federal Deposit Insurance Corporation ("FDIC") on November 15, 2019.

During the second quarter of 2020, the Company did not repurchase any shares of its common stock pursuant to its share repurchase program.  As of June 30, 2020, the Company had 4,700,000 remaining shares available for repurchase under its current share repurchase authorization which expires on December 31, 2020.

Estimated regulatory capital ratios at June 30, 2020 were calculated in accordance with the Basel III capital framework as well as the interagency interim final rule published on March 31, 2020 entitled "Revised Transition of the Current Expected Credit Losses Methodology for Allowances".  The Company is a "well capitalized" bank, as defined by federal regulations, at June 30, 2020, with Tier 1 risk-based capital of 11.22 percent and total risk-based capital of 13.79 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 move into the second half of the year, our management team will continue to prioritize the health and wellbeing of our teammates and customers while at the same time ensuring the resources are available to meet each and every customer need.  Our relationship managers and credit administrators are working diligently to monitor the impact of the pandemic on our customers and on our loan portfolio.  While we expect there will be challenges along the way, we remain optimistic about the strength and position of our Company and our ability to weather the resulting credit cycle.  Despite elevated provision levels, our capital metrics have continued to improve, which better positions our Company for any potential stressed scenarios."

TRANSACTIONS

Texas First Bancshares, Inc.

On January 1, 2020, the Company completed the merger with Texas First Bancshares, Inc., the parent company of Texas First State Bank, (collectively referred to as "Texas First"), pursuant to which Texas First was merged with and into the Company.  Texas First operated 6 full-service banking offices in the Waco, Texas and Killeen-Temple, Texas metropolitan statistical areas ("MSA").  As of January 1, 2020, Texas First collectively reported total assets of $396.9 million, total loans of $185.7 million and total deposits of $369.3 million.  Under the terms of the definitive merger agreement, the Company issued approximately 1,040,000 shares of the Company's common stock plus $13.0 million in cash for all outstanding shares of Texas First.  For more information regarding this transaction, see our Current Report on Form 8-K that was filed with the FDIC on January 2, 2020.  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.

Van Alstyne Financial Corporation & Summit Financial Enterprises, Inc.

On September 1, 2019, the Company completed the mergers with Van Alstyne Financial Corporation and its wholly owned subsidiary, Texas Star Bank (collectively referred to as "Texas Star"), pursuant to which Texas Star was merged with and into the Company, and with Summit Financial Enterprises, Inc. and its wholly owned subsidiary, Summit Bank (collectively referred to as "Summit"), pursuant to which Summit was merged with and into the Company.  Texas Star operated 7 full-service banking offices in Collin and Grayson counties in Texas, and one loan production office in Durant, Oklahoma, while Summit operated 4 offices located in Panama City, Panama City Beach, Fort Walton Beach, and Pensacola, Florida.  As of September 1, 2019, Texas Star and Summit collectively reported total assets of $805.2 million, total loans of $610.2 million and total deposits of $794.2 million.  Under the terms of the definitive merger agreements, the Company issued approximately 4,600,000 shares of the Company's common stock plus $48.2 million in cash for all outstanding shares of both institutions.  For more information regarding these transactions, see our Current Report on Form 8-K that was filed with the FDIC on September 3, 2019.  The purchase accounting for these transactions 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 24 of this news release.

Statement Regarding Impact of COVID-19 Pandemic

The Company prioritizes the health and safety of its teammates and customers, and it will continue to do so throughout the duration of the pandemic.  At the same time, the Company remains focused on improving shareholder value, managing credit exposure, challenging expenses, enhancing the customer experience and supporting the communities it serves. Lastly, as an SBA Preferred Lender, the Company is actively participating in the SBA's PPP for the betterment of its customers and the communities that it serves.

In the presentation that accompanies this news release and in its earnings conference call, the Company has sought and will seek to describe the historical and future impact of the COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations, including the information and discussions regarding the increases in its provision and allowance for credit losses and the discussion regarding negative pressure to its net interest revenue and net interest margin.  Although the Company believes that the statements that pertain to future events, results and trends and their impact on the Company's business are reasonable at the present time, those statements are not historical facts and are based upon current assumptions, expectations, estimates and projections, many of which, by their nature, are beyond the Company's control.  Accordingly, all discussions regarding future events, results and trends and their impact on the Company's business, even in the near term, are necessarily uncertain given the fluid and evolving nature of the pandemic.

If the health, logistical or economic effects of the pandemic worsen, or if the assumptions, expectations, estimates or projections that underlie the Company's statements regarding future effects or trends prove to be incorrect, then the Company's actual assets, business, cash flows, financial condition, liquidity, prospects and results of operations may be materially and adversely impacted in ways that the Company cannot reasonably forecast.

Accordingly, when reading this news release and the accompanying presentation and when listening to the earnings conference call, undue reliance should not be placed upon any statement pertaining to future events, results and trends and their impact on the Company's business in future periods.

Conference Call and Webcast

The Company will conduct a conference call to discuss its second quarter 2020 financial results on July 21, 2020, 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 $23 billion in assets.  BancorpSouth operates approximately 310 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 made in this news release are not statements of historical fact and constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created under the Private Securities Litigation Reform Act of 1995.  These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "aspire," "roadmap," "achieve," "estimate," "intend," "plan," "project," "projection," "forecast," "goal," "target," "would," and "outlook," or the negative version of those words or other comparable words of a future or forward-looking nature. These forward-looking statements include, without limitation, those relating to the impact of the COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations, 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 ability to pay dividends or coupons on Series A Preferred Stock or the Notes or its ability to ultimately repay the Notes or otherwise comply with the terms of such instruments, amortization expense for intangible assets, goodwill impairments, loan impairments, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue and net interest margin, 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, the ability of the Company to access successfully the capital and credit markets when needed or as desired, sources of funding, 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, and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters.

These forward-looking statements are not historical facts, and are based upon current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain, involve risk and are beyond the Company's control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates and projections will be achieved. Accordingly, the Company cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict and that are beyond the Company's control. These risks, assumptions and uncertainties may include, but are not limited to, the impact of the COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations, increases in the provision and allowance for credit losses and interest rate pressure on net interest revenue and net interest margin, 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 lack of availability of the Company's filings mandated by the Exchange Act from the Securities and Exchange Commission'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 Wall Street Reform, Consumer Protection Act, and the Coronavirus Aid, Relief and Economic Security Act established in response to the COVID-19 pandemic and any similar or related rules and regulations, and supervision of the Company's operations, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic and environmental conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of the loss of any key Company personnel, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the 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 capital 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.

The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in our periodic and current reports filed with the FDIC, including those factors included in our Annual Report on Form 10-K for the year ended December 31, 2019 under the heading "Item 1A. Risk Factors," in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K.

Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. If one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may differ materially from the Company's forward-looking statements.  Accordingly, undue reliance should not be placed on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.  New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company.

 

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

 

6/30/2020

3/31/2020

12/31/2019

9/30/2019

6/30/2019

6/30/2020

6/30/2019

Earnings Summary:

             

Interest revenue

$                  197,472

$                  202,064

$                  203,812

$                  199,004

$                  191,063

$          399,536

$          372,196

Interest expense

26,902

34,534

33,038

32,405

31,046

61,436

59,625

Net interest revenue

170,570

167,530

170,774

166,599

160,017

338,100

312,571

Provision for credit losses

20,000

46,000

-

500

500

66,000

1,000

Net interest revenue, after provision

             

   for credit losses

150,570

121,530

170,774

166,099

159,517

272,100

311,571

Noninterest revenue

91,258

76,496

74,697

75,432

66,332

167,754

130,552

Noninterest expense

162,504

168,006

162,351

159,614

157,674

330,510

307,642

Income before income taxes

79,324

30,020

83,120

81,917

68,175

109,344

134,481

Income tax expense

18,164

5,759

17,271

18,160

15,118

23,923

29,826

Net income

$                    61,160

$                    24,261

$                    65,849

$                    63,757

$                    53,057

$            85,421

$          104,655

Less: Preferred dividends

2,372

2,372

-

-

-

4,744

-

Net income available to common shareholders

$                    58,788

$                    21,889

$                    65,849

$                    63,757

$                    53,057

$            80,677

$          104,655

               

Balance Sheet - Period End Balances

             

Total assets

$             23,236,176

$             21,032,524

$             21,052,576

$             19,850,225

$             18,936,814

$     23,236,176

$     18,936,814

Total earning assets

21,119,073

18,939,750

18,891,021

17,619,053

16,948,009

21,119,073

16,948,009

Total securities

4,973,171

4,468,340

4,481,974

2,766,446

2,760,732

4,973,171

2,760,732

Loans and leases, net of unearned income

15,427,421

14,224,645

14,089,683

14,120,783

13,658,527

15,427,421

13,658,527

Allowance for credit losses

237,025

218,199

119,066

116,908

115,691

237,025

115,691

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

1,510,008

1,661,329

1,628,265

1,845,056

1,421,303

1,510,008

1,421,303

Paycheck protection program (PPP) loans (included in loans and leases above)

1,192,715

-

-

-

-

1,192,715

-

Remaining loan mark on acquired loans

19,977

22,286

46,240

53,137

38,408

19,977

38,408

Total deposits

19,179,486

16,887,916

16,410,699

16,025,756

15,136,648

19,179,486

15,136,648

Long-term debt

4,615

4,721

5,053

5,161

5,271

4,615

5,271

Junior subordinated debt securities

296,898

296,723

296,547

-

-

296,898

-

Total shareholders' equity

2,732,687

2,681,904

2,685,017

2,489,427

2,327,120

2,732,687

2,327,120

Common shareholders' equity

2,565,694

2,514,911

2,517,996

2,489,427

2,327,120

2,565,694

2,327,120

               

Balance Sheet - Average Balances

             

Total assets

$             22,707,686

$             21,189,637

$             20,243,023

$             19,170,926

$             18,637,258

$     21,948,661

$     18,337,053

Total earning assets

20,594,889

19,113,449

18,125,676

17,148,574

16,693,115

19,854,169

16,426,158

Total securities

4,437,614

4,461,298

3,555,014

2,738,691

2,733,335

4,449,456

2,718,939

Loans and leases, net of unearned income

15,114,732

14,226,788

14,061,118

13,726,755

13,549,591

14,670,759

13,315,208

PPP loans (included in loans and leases above)

975,029

-

-

-

-

487,515

-

Total deposits

18,454,472

16,905,229

16,218,715

15,509,511

15,080,885

17,679,851

14,765,114

Long-term debt

4,699

4,800

5,138

5,303

5,403

4,750

5,613

Junior subordinated debt securities

296,793

296,617

135,535

-

-

296,705

-

Total shareholders' equity

2,738,434

2,658,699

2,572,750

2,378,882

2,298,512

2,698,567

2,255,866

Common shareholders' equity

2,571,441

2,491,678

2,498,033

2,378,882

2,298,512

2,531,560

2,255,866

               

Nonperforming Assets:

             

Non-accrual loans and leases

$                  126,753

$                  110,074

$                    78,796

$                    76,383

$                    71,076

$          126,753

$            71,076

Loans and leases 90+ days past due, still accruing

9,877

7,272

17,531

16,659

8,053

9,877

8,053

Restructured loans and leases, still accruing

11,575

11,284

15,184

15,033

10,676

11,575

10,676

Non-performing loans (NPLs)

148,205

128,630

111,511

108,075

89,805

148,205

89,805

Other real estate owned

7,164

9,200

6,746

7,929

6,179

7,164

6,179

Non-performing assets (NPAs)

$                  155,369

$                  137,830

$                  118,257

$                  116,004

$                    95,984

$          155,369

$            95,984

               

Financial Ratios and Other Data:

             

Return on average assets

1.08%

0.46%

1.29%

1.32%

1.14%

0.78%

1.15%

Operating return on average assets-excluding MSR*

1.12%

0.70%

1.33%

1.44%

1.33%

0.92%

1.30%

Return on average shareholders' equity

8.98%

3.67%

10.15%

10.63%

9.26%

6.37%

9.36%

Operating return on average shareholders' equity-excluding MSR*

9.29%

5.56%

10.46%

11.63%

10.82%

7.46%

10.54%

Return on average common shareholders' equity

9.19%

3.53%

10.46%

10.63%

9.26%

6.41%

9.36%

Operating return on average common shareholders' equity-excluding MSR*

9.53%

5.55%

10.78%

11.63%

10.82%

7.57%

10.54%

Return on average tangible equity*

13.43%

5.56%

15.47%

16.23%

14.06%

9.58%

14.16%

Operating return on average tangible equity-excluding MSR*

13.89%

8.42%

15.94%

17.75%

16.42%

11.22%

15.95%

Return on average tangible common equity*

14.20%

5.54%

16.19%

16.23%

14.06%

9.97%

14.16%

Operating return on average tangible common equity-excluding MSR*

14.71%

8.71%

16.68%

17.75%

16.42%

11.78%

15.95%

Pre-tax pre-provision net revenue to total average assets*

1.81%

1.74%

1.68%

1.87%

1.73%

1.78%

1.68%

Noninterest income to average assets

1.62%

1.45%

1.46%

1.56%

1.43%

1.54%

1.44%

Noninterest expense to average assets

2.88%

3.19%

3.18%

3.30%

3.39%

3.03%

3.38%

Net interest margin-fully taxable equivalent

3.35%

3.54%

3.76%

3.88%

3.87%

3.44%

3.86%

Net interest margin-fully taxable equivalent, excluding net accretion

             

  on acquired loans and leases

3.30%

3.48%

3.61%

3.76%

3.79%

3.38%

3.77%

Net interest rate spread

3.08%

3.24%

3.44%

3.56%

3.56%

3.15%

3.56%

Efficiency ratio (tax equivalent)*

61.89%

68.65%

65.92%

65.68%

69.36%

65.15%

69.11%

Operating efficiency ratio-excluding MSR (tax equivalent)*

61.16%

63.89%

64.39%

63.01%

65.46%

62.50%

66.19%

Loan/deposit ratio

80.44%

84.23%

85.86%

88.11%

90.23%

80.44%

90.23%

Price to earnings multiple (close)

11.15

9.46

13.60

13.77

13.26

11.15

13.26

Market value to common book value

90.91%

77.21%

130.38%

124.62%

125.60%

90.91%

125.60%

Market value to common book value (avg)

84.79%

107.86%

128.18%

120.12%

125.47%

95.14%

126.90%

Market value to common tangible book value

140.44%

120.81%

201.13%

193.15%

191.45%

140.44%

191.45%

Market value to common tangible book value (avg)

130.99%

168.76%

197.74%

186.17%

191.25%

146.99%

193.43%

Employee FTE

4,792

4,737

4,693

4,674

4,581

4,792

4,581

               

*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 24 and 25.

         
               

Credit Quality Ratios:

             

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

0.03%

0.39%

(0.06%)

(0.02%)

0.04%

0.20%

0.08%

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

0.53%

1.30%

0.00%

0.01%

0.01%

0.90%

0.02%

Allowance for credit losses to net loans and leases

1.54%

1.53%

0.85%

0.83%

0.85%

1.54%

0.85%

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

1.67%

1.53%

0.85%

0.83%

0.85%

1.67%

0.85%

Allowance for credit losses to non-performing loans and leases

159.93%

169.63%

106.78%

108.17%

128.83%

159.93%

128.83%

Allowance for credit losses to non-performing assets

152.56%

158.31%

100.68%

100.78%

120.53%

152.56%

120.53%

Non-performing loans and leases to net loans and leases

0.96%

0.90%

0.79%

0.77%

0.66%

0.96%

0.66%

Non-performing loans and leases to net loans and leases, excluding

             

  acquired loans and leases

0.63%

0.64%

0.65%

0.66%

0.61%

0.63%

0.61%

Non-performing assets to net loans and leases

1.01%

0.97%

0.84%

0.82%

0.70%

1.01%

0.70%

Non-performing assets to net loans and leases, excluding

             

  acquired loans and leases

0.68%

0.68%

0.68%

0.69%

0.63%

0.68%

0.63%

               

Equity Ratios:

             

Total shareholders' equity to total assets

11.76%

12.75%

12.75%

12.54%

12.29%

11.76%

12.29%

Total common shareholders' equity to total assets

11.04%

11.96%

11.96%

12.54%

12.29%

11.04%

12.29%

Tangible shareholders' equity to tangible assets*

8.18%

8.82%

8.92%

8.47%

8.42%

8.18%

8.42%

Tangible shareholders' equity to tangible assets-excluding PPP loans*

8.65%

8.82%

8.92%

8.47%

8.42%

8.65%

8.42%

Tangible common shareholders' equity to tangible assets*

7.44%

7.99%

8.09%

8.47%

8.42%

7.44%

8.42%

Tangible common shareholders' equity to tangible assets-excluding PPP loans*

7.86%

7.99%

8.09%

8.47%

8.42%

7.86%

8.42%

               

Capital Adequacy:

             

Common  Equity Tier 1 capital

10.21%

10.11%

10.57%

10.54%

10.52%

10.21%

10.52%

Tier 1 capital

11.22%

11.13%

11.60%

10.54%

10.52%

11.22%

10.52%

Total capital

13.79%

13.75%

14.17%

11.28%

11.28%

13.79%

11.28%

Tier 1 leverage capital

8.54%

8.90%

9.69%

9.14%

8.96%

8.54%

8.96%

   Estimated for current quarter

             
               

Common Share Data:

             

Basic earnings per share

$                        0.57

$                        0.21

$                        0.63

$                        0.63

$                        0.53

0.78

$                1.05

Diluted earnings per share

0.57

0.21

0.63

0.63

0.53

0.78

1.04

Operating earnings per share*

0.57

0.25

0.67

0.66

0.55

0.82

1.07

Operating earnings per share- excluding MSR*

0.59

0.33

0.65

0.69

0.61

0.92

1.18

Cash dividends per share

0.19

0.19

0.19

0.19

0.17

0.37

0.34

Book value per share

25.01

24.50

24.09

23.76

23.12

25.01

23.12

Tangible book value per share*

16.19

15.66

15.62

15.33

15.17

16.19

15.17

Market value per share (last)

22.74

18.92

31.41

29.61

29.04

22.74

29.04

Market value per share (high)

25.93

31.61

32.97

30.54

31.10

31.61

33.45

Market value per share (low)

17.21

17.24

28.13

26.47

26.92

17.21

25.76

Market value per share (avg)

21.21

26.43

30.88

28.54

29.01

23.80

29.34

Dividend payout ratio

32.29%

88.20%

29.43%

29.36%

32.24%

47.46%

32.51%

Total shares outstanding

102,566,301

102,632,484

104,522,804

104,775,876

100,651,798

102,566,301

100,651,798

Average shares outstanding - basic

102,603,525

104,354,328

104,739,906

101,168,730

100,610,746

103,478,927

100,058,849

Average shares outstanding - diluted

102,827,225

104,733,897

105,144,032

101,493,247

100,888,164

103,780,561

100,302,641

               
               

Yield/Rate:

             

(Taxable equivalent basis)

             

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

4.59%

5.00%

5.13%

5.16%

5.12%

4.79%

5.11%

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

             

  net accretion on acquired loans and leases

4.53%

4.93%

4.95%

5.02%

5.02%

4.72%

4.98%

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

             

  net accretion on acquired loans and leases - excluding PPP loans

4.67%

4.93%

4.95%

5.02%

5.02%

4.80%

4.98%

PPP loans

2.50%

N/A

N/A

N/A

N/A

2.50%

N/A

Available-for-sale securities:

             

  Taxable

1.95%

1.99%

2.00%

2.13%

2.10%

1.97%

2.07%

  Tax-exempt

3.86%

4.44%

4.69%

5.56%

4.53%

4.12%

4.58%

Short-term, FHLB and other equity investments

0.20%

1.53%

1.95%

2.41%

2.52%

0.55%

2.59%

  Total interest earning assets and revenue

3.87%

4.27%

4.48%

4.63%

4.61%

4.06%

4.59%

Deposits

0.50%

0.67%

0.68%

0.71%

0.68%

0.58%

0.66%

  Demand - interest bearing

0.61%

0.84%

0.88%

0.94%

0.91%

0.72%

0.88%

  Savings

0.18%

0.26%

0.28%

0.28%

0.29%

0.22%

0.29%

  Other time

1.54%

1.64%

1.68%

1.67%

1.60%

1.59%

1.53%

Short-term borrowings

0.39%

1.25%

1.51%

1.90%

2.14%

0.81%

2.15%

Total interest bearing deposits and short-term borrowings

0.71%

0.95%

1.01%

1.07%

1.06%

0.83%

1.03%

Junior subordinated debt

4.18%

4.42%

4.17%

N/A

N/A

4.42%

N/A

Long-term debt

4.81%

4.96%

4.83%

4.93%

4.87%

4.89%

4.88%

  Total interest bearing liabilities and expense

0.79%

1.03%

1.04%

1.07%

1.06%

0.91%

1.03%

Interest bearing liabilities to interest earning assets

66.65%

70.81%

69.37%

70.15%

70.47%

68.65%

70.80%

Net interest tax equivalent adjustment

$                         725

$                         714

$                         800

$                         972

$                         974

$              1,439

$              2,009

               

*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 24 and 25.

         

 

 

BancorpSouth Bank

Consolidated Balance Sheets

(Unaudited)

           
 

Jun-20

Mar-20

Dec-19

Sep-19

Jun-19

 

(Dollars in thousands)

Assets

         

Cash and due from banks

$               240,354

$               253,495

$               261,773

$               333,108

$               212,080

Interest bearing deposits with other banks

         

and Federal funds sold

318,615

29,490

71,233

466,650

314,172

Available-for-sale securities, at fair value

4,973,171

4,468,340

4,481,974

2,766,446

2,760,732

Loans and leases*

15,444,794

14,241,912

14,107,743

14,137,563

13,674,990

  Less:  Unearned income

17,373

17,267

18,060

16,780

16,463

             Allowance for credit losses

237,025

218,199

119,066

116,908

115,691

Net loans and leases

15,190,396

14,006,446

13,970,617

14,003,875

13,542,836

Loans held for sale

391,051

194,321

210,361

229,514

175,898

Premises and equipment, net

504,748

497,669

480,901

480,819

447,564

Accrued interest receivable

101,321

70,463

65,173

62,818

60,598

Goodwill

847,984

848,242

825,679

822,093

734,473

Other identifiable intangibles

56,989

59,345

60,008

61,100

65,930

Bank owned life insurance

329,167

327,312

326,417

328,670

315,398

Other real estate owned

7,164

9,200

6,746

7,929

6,179

Other assets

275,216

268,201

291,694

287,203

300,954

Total Assets

$           23,236,176

$           21,032,524

$           21,052,576

$           19,850,225

$           18,936,814

Liabilities

         

Deposits:

         

  Demand:  Noninterest bearing

$            6,385,370

$            4,861,155

$            4,661,821

$            4,770,907

$            4,329,172

                  Interest bearing

7,907,637

7,268,053

7,176,934

6,745,329

6,511,332

  Savings

2,234,853

2,013,343

1,937,985

1,898,813

1,861,247

  Other time

2,651,626

2,745,365

2,633,959

2,610,707

2,434,897

Total deposits

19,179,486

16,887,916

16,410,699

16,025,756

15,136,648

Securities sold under agreement to repurchase

670,016

538,962

513,422

529,788

439,541

Federal funds purchased

         

   and other short-term borrowing

220

290,224

725,000

480,000

730,000

Accrued interest payable

13,476

17,482

15,124

13,120

12,225

Junior subordinated debt securities

296,898

296,723

296,547

-

-

Long-term debt

4,615

4,721

5,053

5,161

5,271

Other liabilities

338,778

314,592

401,714

306,973

286,009

Total Liabilities

20,503,489

18,350,620

18,367,559

17,360,798

16,609,694

Shareholders' Equity

         

Preferred stock

166,993

166,993

167,021

-

-

Common stock

256,416

256,581

261,307

261,940

251,629

Capital surplus

561,541

558,114

605,976

611,115

506,201

Accumulated other comprehensive income (loss)

25,191

17,849

(62,663)

(50,538)

(53,252)

Retained earnings

1,722,546

1,682,367

1,713,376

1,666,910

1,622,542

Total Shareholders' Equity

2,732,687

2,681,904

2,685,017

2,489,427

2,327,120

Total Liabilities & Shareholders' Equity

$           23,236,176

$           21,032,524

$           21,052,576

$           19,850,225

$           18,936,814

           
           

*Includes $1.193 billion in PPP loans at June 30, 2020.

       

 

 

BancorpSouth Bank

Consolidated Average Balance Sheets

(Unaudited)

           
 

Jun-20

Mar-20

Dec-19

Sep-19

Jun-19

 

(Dollars in thousands)

Assets

         

Cash and due from banks

$               229,334

$               246,860

$               244,444

$               229,814

$               202,564

Interest bearing deposits with other banks

         

and Federal funds sold

760,789

239,766

300,495

486,716

254,951

Available-for-sale securities, at fair value

4,437,614

4,461,298

3,555,014

2,738,691

2,733,335

Loans and leases*

15,132,600

14,244,649

14,078,793

13,743,876

13,565,632

  Less:  Unearned income

17,868

17,861

17,675

17,121

16,041

             Allowance for credit losses

217,508

193,796

117,668

116,232

116,339

Net loans and leases

14,897,224

14,032,992

13,943,450

13,610,523

13,433,252

Loans held for sale

261,377

147,798

173,649

157,691

117,995

Premises and equipment, net

499,767

494,413

481,623

458,758

453,239

Accrued interest receivable

137,456

64,010

60,678

57,941

54,977

Goodwill

848,160

844,635

823,812

761,084

735,540

Other identifiable intangibles

58,280

58,805

60,559

59,253

49,058

Bank owned life insurance

328,037

326,808

328,567

319,894

313,550

Other real estate owned

8,410

8,151

7,820

6,908

7,313

Other assets

241,238

264,101

262,912

283,653

281,484

Total Assets

$           22,707,686

$           21,189,637

$           20,243,023

$           19,170,926

$           18,637,258

Liabilities

         

Deposits:

         

  Demand:  Noninterest bearing

$            5,942,570

$            4,717,202

$            4,803,104

$            4,479,698

$            4,307,570

                  Interest bearing

7,674,479

7,466,674

6,872,921

6,655,962

6,485,523

  Savings

2,152,092

1,975,690

1,913,650

1,869,045

1,872,552

  Other time

2,685,331

2,745,663

2,629,040

2,504,806

2,415,240

Total deposits

18,454,472

16,905,229

16,218,715

15,509,511

15,080,885

Securities sold under agreement to repurchase

644,127

541,707

530,217

507,558

484,950

Federal funds purchased

         

   and other short-term borrowing

269,121

502,257

487,272

487,456

499,385

Accrued interest payable

16,268

19,205

14,942

13,756

12,239

Junior subordinated debt securities

296,793

296,617

135,535

-

-

Long-term debt

4,699

4,800

5,138

5,303

5,403

Other liabilities

283,772

261,123

278,454

268,460

255,884

Total Liabilities

19,969,252

18,530,938

17,670,273

16,792,044

16,338,746

Shareholders' Equity

         

Preferred stock

166,993

167,021

74,717

-

-

Common stock

256,515

261,065

261,905

254,881

252,351

Capital surplus

559,737

600,880

611,667

538,665

511,786

Accumulated other comprehensive income (loss)

23,016

(36,367)

(53,111)

(52,204)

(66,048)

Retained earnings

1,732,173

1,666,100

1,677,572

1,637,540

1,600,423

Total Shareholders' Equity

2,738,434

2,658,699

2,572,750

2,378,882

2,298,512

Total Liabilities & Shareholders' Equity

$           22,707,686

$           21,189,637

$           20,243,023

$           19,170,926

$           18,637,258

           
           

*Includes $975.0 million in PPP loans for the quarter ended June 30, 2020.

     

 

 

BancorpSouth Bank

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

                           
 

Quarter Ended

               

Year to Date

 

Jun-20

 

Mar-20

 

Dec-19

 

Sep-19

 

Jun-19

 

Jun-20

 

Jul-19

INTEREST REVENUE:

                         

Loans and leases

$     173,164

 

$    177,019

 

$      182,269

 

$     178,729

 

$    172,748

 

$   350,183

 

$   336,427

Deposits with other banks

207

 

739

 

1,225

 

2,456

 

1,292

 

946

 

2,808

Federal funds sold, securities purchased

                         

   under agreement to resell, FHLB and 

                         

      other equity investments

178

 

315

 

426

 

735

 

542

 

493

 

916

Available-for-sale securities:

                         

    Taxable

20,783

 

21,508

 

17,241

 

13,759

 

13,223

 

42,291

 

25,660

    Tax-exempt

1,178

 

1,060

 

1,266

 

1,883

 

1,890

 

2,238

 

4,011

Loans held for sale

1,962

 

1,423

 

1,385

 

1,442

 

1,368

 

3,385

 

2,374

        Total interest revenue

197,472

 

202,064

 

203,812

 

199,004

 

191,063

 

399,536

 

372,196

                           

INTEREST EXPENSE:

                         

Interest bearing demand

11,631

 

15,522

 

15,202

 

15,689

 

14,741

 

27,153

 

27,880

Savings

943

 

1,290

 

1,334

 

1,341

 

1,348

 

2,233

 

2,686

Other time

10,296

 

11,168

 

11,134

 

10,546

 

9,635

 

21,464

 

17,700

Federal funds purchased and securities sold

                         

   under agreement to repurchase

291

 

1,436

 

1,591

 

1,857

 

1,972

 

1,727

 

3,747

Short-term and long-term debt

477

 

1,857

 

2,293

 

2,971

 

3,349

 

2,334

 

7,611

Junior subordinated debt

3,263

 

3,261

 

1,482

 

-

 

-

 

6,524

 

-

Other

1

 

-

 

2

 

1

 

1

 

1

 

1

        Total interest expense

26,902

 

34,534

 

33,038

 

32,405

 

31,046

 

61,436

 

59,625

                           

        Net interest revenue

170,570

 

167,530

 

170,774

 

166,599

 

160,017

 

338,100

 

312,571

  Provision for credit losses

20,000

 

46,000

 

-

 

500

 

500

 

66,000

 

1,000

        Net interest revenue, after provision for

                         

          credit losses

150,570

 

121,530

 

170,774

 

166,099

 

159,517

 

272,100

 

311,571

                           

NONINTEREST REVENUE:

                         

Mortgage banking

29,557

 

9,470

 

10,102

 

7,289

 

351

 

39,027

 

2,391

Credit card, debit card and merchant fees

9,080

 

9,176

 

9,836

 

9,778

 

10,168

 

18,256

 

19,042

Deposit service charges

7,647

 

11,682

 

12,193

 

11,939

 

11,117

 

19,329

 

21,883

Security gains(losses), net

62

 

(85)

 

(41)

 

117

 

59

 

(23)

 

98

Insurance commissions

33,118

 

29,603

 

27,648

 

31,512

 

33,951

 

62,721

 

64,131

Wealth management

6,421

 

6,570

 

6,617

 

6,651

 

5,906

 

12,991

 

11,541

Other

5,373

 

10,080

 

8,342

 

8,146

 

4,780

 

15,453

 

11,466

        Total noninterest revenue

91,258

 

76,496

 

74,697

 

75,432

 

66,332

 

167,754

 

130,552

                           

NONINTEREST EXPENSE:

                         

Salaries and employee benefits

108,103

 

108,272

 

97,137

 

101,154

 

100,981

 

216,375

 

198,209

Occupancy, net of rental income

12,890

 

12,708

 

12,267

 

12,323

 

11,988

 

25,598

 

23,539

Equipment

4,762

 

4,649

 

4,725

 

4,676

 

4,423

 

9,411

 

8,311

Deposit insurance assessments

1,962

 

1,546

 

2,200

 

2,038

 

2,165

 

3,508

 

4,905

Other

34,787

 

40,831

 

46,022

 

39,423

 

38,117

 

75,618

 

72,678

        Total noninterest expense

162,504

 

168,006

 

162,351

 

159,614

 

157,674

 

330,510

 

307,642

        Income before income taxes

79,324

 

30,020

 

83,120

 

81,917

 

68,175

 

109,344

 

134,481

Income tax expense

18,164

 

5,759

 

17,271

 

18,160

 

15,118

 

23,923

 

29,826

        Net income

$       61,160

 

$      24,261

 

$        65,849

 

$       63,757

 

$      53,057

 

$     85,421

 

$   104,655

Less: Preferred dividends

2,372

 

2,372

 

-

 

-

 

-

 

4,744

 

-

        Net income available to common shareholders

$       58,788

 

$      21,889

 

$        65,849

 

$       63,757

 

$      53,057

 

$     80,677

 

$   104,655

                           

Net income per common share: Basic

$           0.57

 

$          0.21

 

$            0.63

 

$           0.63

 

$          0.53

 

$         0.78

 

$         1.05

                                                   Diluted

$           0.57

 

$          0.21

 

$            0.63

 

$           0.63

 

$          0.53

 

$         0.78

 

$         1.04

 

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

                   
 

Quarter Ended

 

Jun-20

 

Mar-20

 

Dec-19

 

Sep-19

 

Jun-19

LOAN AND LEASE PORTFOLIO:

                 

Commercial and industrial

                 

   Commercial and industrial-non real estate

3,038,957

 

2,008,043

 

1,979,507

 

1,887,817

 

1,832,016

   Commercial and industrial-owner occupied

2,296,287

 

2,290,585

 

2,268,813

 

2,276,338

 

2,157,292

      Total commercial and industrial

5,335,244

 

4,298,628

 

4,248,320

 

4,164,155

 

3,989,308

Commercial real estate

                 

   Agricultural

333,615

 

339,539

 

337,349

 

347,866

 

332,902

   Construction, acquisition and development

1,658,678

 

1,582,039

 

1,577,342

 

1,538,073

 

1,441,269

   Commercial real estate

3,323,744

 

3,303,537

 

3,220,914

 

3,345,166

 

3,287,453

      Total commercial real estate

5,316,037

 

5,225,115

 

5,135,605

 

5,231,105

 

5,061,624

Consumer

                 

   Consumer mortgages

3,646,168

 

3,572,277

 

3,543,075

 

3,519,449

 

3,422,661

   Home equity

655,543

 

686,202

 

683,515

 

678,294

 

670,352

   Credit cards

86,592

 

93,896

 

102,559

 

101,213

 

101,024

      Total consumer

4,388,303

 

4,352,375

 

4,329,149

 

4,298,956

 

4,194,037

All other

387,837

 

348,527

 

376,609

 

426,567

 

413,558

      Total loans

$  15,427,421

 

$  14,224,645

 

$  14,089,683

 

$   14,120,783

 

$  13,658,527

                   

ALLOWANCE FOR CREDIT LOSSES:

                 

Balance, beginning of period

$       218,199

 

$       119,066

 

$       116,908

 

$       115,691

 

$       116,499

                   

Impact of adopting ASC 326 - cumulative effect adjustment

-

 

40,000

 

-

 

-

 

-

                   

Impact of adopting ASC 326 - purchased loans with credit

                 

   deterioration

-

 

22,634

 

-

 

-

 

-

                   

Loans and leases charged-off:

                 

Commercial and industrial

                 

   Commercial and industrial-non real estate

(1,506)

 

(10,792)

 

(1,273)

 

(218)

 

(866)

   Commercial and industrial-owner occupied

(13)

 

(184)

 

(192)

 

(65)

 

-

     Total commercial and industrial

(1,519)

 

(10,976)

 

(1,465)

 

(283)

 

(866)

Commercial real estate

                 

   Agricultural

(21)

 

(65)

 

(11)

 

-

 

-

   Construction, acquisition and development

(9)

 

(3,173)

 

(26)

 

-

 

(45)

   Commercial real estate

-

 

(67)

 

-

 

(49)

 

(250)

     Total commercial real estate

(30)

 

(3,305)

 

(37)

 

(49)

 

(295)

Consumer

                 

   Consumer mortgages

(124)

 

(524)

 

(687)

 

(255)

 

(237)

   Home equity

(162)

 

(236)

 

(173)

 

(39)

 

(124)

   Credit cards

(703)

 

(798)

 

(797)

 

(631)

 

(922)

     Total consumer

(989)

 

(1,558)

 

(1,657)

 

(925)

 

(1,283)

All other

(396)

 

(914)

 

(965)

 

(895)

 

(912)

     Total loans charged-off

(2,934)

 

(16,753)

 

(4,124)

 

(2,152)

 

(3,356)

                   

Recoveries:

                 

Commercial and industrial

                 

   Commercial and industrial-non real estate

277

 

355

 

353

 

835

 

747

   Commercial and industrial-owner occupied

136

 

1,179

 

30

 

49

 

71

     Total commercial and industrial

413

 

1,534

 

383

 

884

 

818

Commercial real estate

                 

   Agricultural

6

 

6

 

4

 

3

 

10

   Construction, acquisition and development

172

 

245

 

584

 

480

 

63

   Commercial real estate

50

 

135

 

4,212

 

29

 

218

     Total commercial real estate

228

 

386

 

4,800

 

512

 

291

Consumer

                 

   Consumer mortgages

345

 

397

 

407

 

278

 

244

   Home equity

259

 

80

 

216

 

731

 

179

   Credit cards

195

 

285

 

218

 

224

 

223

     Total consumer

799

 

762

 

841

 

1,233

 

646

All other

320

 

344

 

258

 

240

 

293

     Total recoveries

1,760

 

3,026

 

6,282

 

2,869

 

2,048

                   

Net (charge-offs)recoveries

(1,174)

 

(13,727)

 

2,158

 

717

 

(1,308)

                   

Initial allowance on loans purchased with credit deterioration

-

 

4,226

 

-

 

-

 

-

                   

Provision:

                 

   Initial provision for loans acquired during the quarter

-

 

1,000

 

-

 

-

 

-

   Provision for credit losses related to loans and leases

20,000

 

45,000

 

-

 

500

 

500

     Total provision

20,000

 

46,000

 

-

 

500

 

500

                   

Balance, end of period

$       237,025

 

$       218,199

 

$       119,066

 

$       116,908

 

$       115,691

                   

Average loans for period

$ 15,114,732

 

$ 14,226,788

 

$ 14,061,118

 

$ 13,726,755

 

$ 13,549,591

                   

Ratio:

                 

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

0.03%

 

0.39%

 

(0.06%)

 

(0.02%)

 

0.04%

 

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

                     
   

Quarter Ended

   

Jun-20

 

Mar-20

 

Dec-19

 

Sep-19

 

Jun-19

BXS ORIGINATED LOANS AND LEASES:

                   
                     

Loans and leases charged off:

                   

Commercial and industrial

                   

   Commercial and industrial-non real estate

 

$            (420)

 

$           (230)

 

$           (844)

 

$            (185)

 

$           (773)

   Commercial and industrial-owner occupied

 

(13)

 

(19)

 

(184)

 

(65)

 

-

     Total commercial and industrial

 

(433)

 

(249)

 

(1,028)

 

(250)

 

(773)

Commercial Real estate

                   

   Agricultural

 

-

 

(65)

 

(6)

 

-

 

-

   Construction, acquisition and development

 

-

 

(121)

 

(26)

 

-

 

(45)

   Commercial real estate

 

-

 

(67)

 

-

 

(49)

 

(250)

     Total real estate

 

-

 

(253)

 

(32)

 

(49)

 

(295)

Consumer

                   

   Consumer mortgages

 

(113)

 

(357)

 

(648)

 

(255)

 

(237)

   Home equity

 

(162)

 

(236)

 

(173)

 

(39)

 

(124)

   Credit cards

 

(703)

 

(798)

 

(797)

 

(631)

 

(922)

     Total consumer

 

(978)

 

(1,391)

 

(1,618)

 

(925)

 

(1,283)

All other

 

(288)

 

(704)

 

(782)

 

(848)

 

(832)

     Total loans charged off

 

(1,699)

 

(2,597)

 

(3,460)

 

(2,072)

 

(3,183)

                     

Recoveries:

                   

Commercial and industrial

                   

   Commercial and industrial-non real estate

 

210

 

325

 

277

 

833

 

720

   Commercial and industrial-owner occupied

 

136

 

1,177

 

30

 

49

 

41

     Total commercial and industrial

 

346

 

1,502

 

307

 

882

 

761

Commercial Real estate

                   

   Agricultural

 

5

 

4

 

4

 

3

 

10

   Construction, acquisition and development

 

170

 

244

 

583

 

480

 

63

   Commercial real estate

 

50

 

135

 

4,212

 

29

 

218

     Total real estate

 

225

 

383

 

4,799

 

512

 

291

Consumer

                   

   Consumer mortgages

 

343

 

395

 

405

 

275

 

241

   Home equity

 

258

 

79

 

215

 

729

 

177

   Credit cards

 

195

 

285

 

218

 

224

 

223

     Total consumer

 

796

 

759

 

838

 

1,228

 

641

All other

 

275

 

316

 

245

 

226

 

291

     Total recoveries

 

1,642

 

2,960

 

6,189

 

2,848

 

1,984

                     

Net (charge-offs)/recoveries

 

$              (57)

 

$            363

 

$         2,729

 

$             776

 

$         (1,199)

 

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

                   
 

Quarter Ended

 

Jun-20

 

Mar-20

 

Dec-19

 

Sep-19

 

Jun-19

ACQUIRED LOANS AND LEASES:

                 
                   

Loans and leases charged off:

                 

Commercial and industrial

                 

   Commercial and industrial-non real estate

$         (1,086)

 

$      (10,562)

 

$           (429)

 

$             (33)

 

$             (93)

   Commercial and industrial-owner occupied

-

 

(165)

 

(8)

 

-

 

-

     Total commercial and industrial

(1,086)

 

(10,727)

 

(437)

 

(33)

 

(93)

Commercial Real estate

                 

   Agricultural

(21)

 

-

 

(5)

 

-

 

-

   Construction, acquisition and development

(9)

 

(3,052)

 

-

 

-

 

-

   Commercial real estate

-

 

-

 

-

 

-

 

-

     Total real estate

(30)

 

(3,052)

 

(5)

 

-

 

-

Consumer

                 

   Consumer mortgages

(11)

 

(167)

 

(39)

 

-

 

-

   Home equity

-

 

-

 

-

 

-

 

-

   Credit cards

-

 

-

 

-

 

-

 

-

     Total consumer

(11)

 

(167)

 

(39)

 

-

 

-

All other

(108)

 

(210)

 

(183)

 

(47)

 

(80)

     Total loans charged off

(1,235)

 

(14,156)

 

(664)

 

(80)

 

(173)

                   

Recoveries:

                 

Commercial and industrial

                 

   Commercial and industrial-non real estate

67

 

30

 

76

 

2

 

27

   Commercial and industrial-owner occupied

-

 

2

 

-

 

-

 

30

     Total commercial and industrial

67

 

32

 

76

 

2

 

57

Commercial Real estate

                 

   Agricultural

1

 

2

 

-

 

-

 

-

   Construction, acquisition and development

2

 

1

 

1

 

-

 

-

   Commercial real estate

-

 

-

 

-

 

-

 

-

     Total real estate

3

 

3

 

1

 

-

 

-

Consumer

                 

   Consumer mortgages

2

 

2

 

2

 

3

 

3

   Home equity

1

 

1

 

1

 

2

 

2

   Credit cards

-

 

-

 

-

 

-

 

-

     Total consumer

3

 

3

 

3

 

5

 

5

All other

45

 

28

 

13

 

14

 

2

     Total recoveries

118

 

66

 

93

 

21

 

64

                   

Net (charge-offs)/recoveries

$         (1,117)

 

$      (14,090)

 

$           (571)

 

$             (59)

 

$           (109)

 

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

                   
 

Quarter Ended

 

Jun-20

 

Mar-20

 

Dec-19

 

Sep-19

 

Jun-19

NON-PERFORMING ASSETS

                 

NON-PERFORMING LOANS AND LEASES:

                 

  Nonaccrual Loans and Leases

                 

    Commercial and industrial

                 

       Commercial and industrial-non real estate

$    16,124

 

$        16,589

 

$        11,105

 

$    10,430

 

$          9,456

       Commercial and industrial-owner occupied

16,745

 

11,212

 

7,838

 

7,446

 

8,648

         Total commercial and industrial

32,869

 

27,801

 

18,943

 

17,876

 

18,104

    Commercial real estate

                 

       Agricultural

5,244

 

5,454

 

4,772

 

4,423

 

6,115

       Construction, acquisition and development

9,715

 

13,899

 

6,225

 

2,231

 

2,071

       Commercial real estate

45,047

 

29,697

 

16,199

 

16,823

 

13,064

         Total commercial real estate

60,006

 

49,050

 

27,196

 

23,477

 

21,250

    Consumer

                 

       Consumer mortgages

30,672

 

29,834

 

28,879

 

31,744

 

28,779

       Home equity

2,584

 

2,597

 

2,993

 

2,767

 

2,432

       Credit cards

90

 

122

 

63

 

85

 

86

         Total consumer

33,346

 

32,553

 

31,935

 

34,596

 

31,297

    All other

532

 

670

 

722

 

434

 

425

         Total nonaccrual loans and leases

$  126,753

 

$      110,074

 

$        78,796

 

$    76,383

 

$        71,076

                   

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

9,877

 

7,272

 

17,531

 

16,659

 

8,053

  Restructured Loans and Leases, Still Accruing

11,575

 

11,284

 

15,184

 

15,033

 

10,676

     Total non-performing loans and leases

$  148,205

 

$      128,630

 

$      111,511

 

$   108,075

 

$        89,805

                   

OTHER REAL ESTATE OWNED:

7,164

 

9,200

 

6,746

 

7,929

 

6,179

                   

Total Non-performing Assets

$  155,369

 

$      137,830

 

$      118,257

 

$   116,004

 

$        95,984

                   

  BXS originated assets

$    94,155

 

$        85,908

 

$        78,295

 

$    84,413

 

$        76,816

  Acquired assets

61,214

 

51,922

 

39,962

 

31,591

 

19,168

Total Non-performing Assets

$  155,369

 

$      137,830

 

$      118,257

 

$   116,004

 

$        95,984

                   

Additions to Nonaccrual Loans and Leases During the Quarter

$    36,619

 

$        47,523

 

$        25,147

 

$    26,331

 

$        22,002

                   

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

                 

    BXS originated loans

$    35,002

 

$        54,315

 

$        44,559

 

$    40,668

 

$        42,968

    Acquired loans

10,450

 

14,405

 

23,054

 

16,741

 

14,042

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

$    45,452

 

$        68,720

 

$        67,613

 

$    57,409

 

$        57,010

 

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

                   
 

June 30, 2020

             

Purchased

   
   

Special

       

Credit

   
 

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Deteriorated (Loss)

 

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

                 

Commercial and industrial

                 

   Commercial and industrial-non real estate

$   2,980,373

$                 -

$        43,368

$         179

$                 -

$    3,789

$               11,248

 

$           3,038,957

   Commercial and industrial-owner occupied

2,222,454

-

61,204

-

-

8,515

4,114

 

2,296,287

     Total commercial and industrial

5,202,827

-

104,572

179

-

12,304

15,362

 

5,335,244

Commercial real estate

                 

   Agricultural

316,390

-

14,159

-

-

714

2,352

 

333,615

   Construction, acquisition and development

1,626,162

2,741

20,890

-

-

3,122

5,763

 

1,658,678

   Commercial real estate

3,164,522

-

113,206

-

-

40,672

5,344

 

3,323,744

     Total commercial real estate

5,107,074

2,741

148,255

-

-

44,508

13,459

 

5,316,037

Consumer

                 

   Consumer mortgages

3,560,630

-

84,207

-

-

594

737

 

3,646,168

   Home equity

648,891

-

6,652

-

-

-

-

 

655,543

   Credit cards

86,592

-

-

-

-

-

-

 

86,592

     Total consumer

4,296,113

-

90,859

-

-

594

737

 

4,388,303

All other

379,659

1,523

6,578

-

-

-

77

 

387,837

     Total loans

$  14,985,673

$          4,264

$      350,264

$         179

$                 -

$  57,406

$               29,635

 

$         15,427,421

                   

  BXS originated loans

$  13,516,292

$          2,741

$      231,687

$         179

$                 -

$  28,288

$                      -

 

$         13,779,187

  Acquired loans*

1,469,381

1,523

118,577

-

-

29,118

29,635

 

1,648,234

     Total Loans

$  14,985,673

$          4,264

$      350,264

$         179

$                 -

$  57,406

$               29,635

 

$         15,427,421

                   
 

March 31, 2020

             

Purchased

   
   

Special

       

Credit

   
 

Pass

Mention

Substandard

Doubtful

Loss

Impaired

Deteriorated (Loss)

 

Total

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

                 

Commercial and industrial

                 

   Commercial and industrial-non real estate

$   1,936,032

$          3,424

$        53,713

$         191

$            667

$    1,769

$               12,247

 

$           2,008,043

   Commercial and industrial-owner occupied

2,224,075

-

56,824

-

-

5,568

4,118

 

2,290,585

     Total commercial and industrial

4,160,107

3,424

110,537

191

667

7,337

16,365

 

4,298,628

Commercial real estate

                 

   Agricultural

324,412

-

12,006

-

-

711

2,410

 

339,539

   Construction, acquisition and development

1,551,667

2,045

14,739

-

-

7,778

5,810

 

1,582,039

   Commercial real estate

3,199,726

-

74,263

-

-

24,205

5,343

 

3,303,537

     Total commercial real estate

5,075,805

2,045

101,008

-

-

32,694

13,563

 

5,225,115

Consumer

                 

   Consumer mortgages

3,476,631

-

94,324

-

-

596

726

 

3,572,277

   Home equity

679,135

-

7,067

-

-

-

-

 

686,202

   Credit cards

93,896

-

-

-

-

-

-

 

93,896

     Total consumer

4,249,662

-

101,391

-

-

596

726

 

4,352,375

All other

336,028

1,660

10,761

-

-

-

78

 

348,527

     Total loans

$  13,821,602

$          7,129

$      323,697

$         191

$            667

$  40,627

$               30,732

 

$         14,224,645

                   

  BXS originated loans

$  12,150,616

$          2,045

$      225,506

$         191

$                 -

$  22,356

$                      -

 

$         12,400,714

  Acquired loans*

1,670,986

5,084

98,191

-

667

18,271

30,732

 

1,823,931

     Total Loans

$  13,821,602

$          7,129

$      323,697

$         191

$            667

$  40,627

$               30,732

 

$         14,224,645

                   
                   

*Includes certain loans that are no longer included in the "Net book value of acquired loans" on page 10 as a result of maturity, refinance, or other triggering event.

     

 

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)

                   
                   
                   
 

Quarter Ended

 

Jun-20

 

Mar-20

 

Dec-19

 

Sep-19

 

Jun-19

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

                 

Pass

$ 14,985,673

 

$ 13,821,602

 

$ 13,738,979

 

$ 13,782,584

 

$   13,363,023

Special Mention

4,264

 

7,129

 

2,240

 

2,530

 

490

Substandard

350,264

 

323,697

 

298,491

 

280,059

 

244,585

Doubtful

179

 

191

 

194

 

194

 

218

Loss

-

 

667

 

-

 

-

 

-

Impaired

57,406

 

40,627

 

24,094

 

24,948

 

24,048

Purchased Credit Deteriorated (Loss)

29,635

 

30,732

 

-

 

-

 

-

Purchased Credit Impaired

-

 

-

 

25,685

 

30,468

 

26,163

   Total

$ 15,427,421

 

$ 14,224,645

 

$ 14,089,683

 

$ 14,120,783

 

$   13,658,527

                   

BXS ORIGINATED LOAN PORTFOLIO BY INTERNALLY

                 

   ASSIGNED GRADE:

                 

Pass

$ 13,516,292

 

$ 12,150,616

 

$ 12,080,336

 

$ 11,901,311

 

$   11,876,557

Special Mention

2,741

 

2,045

 

-

 

-

 

-

Substandard

231,687

 

225,506

 

202,017

 

192,133

 

181,045

Doubtful

179

 

191

 

194

 

194

 

218

Loss

-

 

-

 

-

 

-

 

-

Impaired

28,288

 

22,356

 

17,110

 

24,379

 

22,821

Purchased Credit Deteriorated (Loss)

-

 

-

 

-

 

-

 

-

Purchased Credit Impaired

-

 

-

 

-

 

-

 

-

   Total

$ 13,779,187

 

$ 12,400,714

 

$ 12,299,657

 

$ 12,118,017

 

$   12,080,641

                   

ACQUIRED LOAN PORTFOLIO BY INTERNALLY

                 

   ASSIGNED GRADE:

                 

Pass

$   1,469,381

 

$   1,670,986

 

$   1,658,643

 

$   1,881,273

 

$    1,486,466

Special Mention

1,523

 

5,084

 

2,240

 

2,530

 

490

Substandard

118,577

 

98,191

 

96,474

 

87,926

 

63,540

Doubtful

-

 

-

 

-

 

-

 

-

Loss

-

 

667

 

-

 

-

 

-

Impaired

29,118

 

18,271

 

6,984

 

569

 

1,227

Purchased Credit Deteriorated (Loss)

29,635

 

30,732

 

-

 

-

 

-

Purchased Credit Impaired

-

 

-

 

25,685

 

30,468

 

26,163

   Total

$   1,648,234

 

$   1,823,931

 

$   1,790,026

 

$   2,002,766

 

$    1,577,886

 

 

 

BancorpSouth Bank

Geographical Information

(Dollars in thousands)

(Unaudited)

                   
 

June 30, 2020

 

Alabama

               
 

and Florida

               
 

Panhandle

Arkansas

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:

                 

Commercial and industrial

                 

   Commercial and industrial-non real estate

$    277,855

$    232,865

$    363,059

$    813,505

$      95,316

$    191,870

$  1,058,622

$        5,865

$   3,038,957

   Commercial and industrial-owner occupied

270,088

187,072

256,107

639,818

64,171

135,193

743,838

-

2,296,287

     Total commercial and industrial

547,943

419,937

619,166

1,453,323

159,487

327,063

1,802,460

5,865

5,335,244

Commercial real estate

                 

   Agricultural

26,828

71,146

26,722

66,207

7,190

11,125

123,797

600

333,615

   Construction, acquisition and development

158,608

48,414

79,285

323,112

19,204

122,846

907,209

-

1,658,678

   Commercial real estate

355,893

353,641

316,082

676,399

230,650

224,551

1,164,087

2,441

3,323,744

     Total commercial real estate

541,329

473,201

422,089

1,065,718

257,044

358,522

2,195,093

3,041

5,316,037

Consumer

                 

   Consumer mortgages

583,468

345,831

342,423

843,050

105,036

322,052

1,031,117

73,191

3,646,168

   Home equity

104,309

46,520

85,555

234,473

16,229

131,247

36,890

320

655,543

   Credit cards

-

-

-

-

-

-

-

86,592

86,592

     Total consumer

687,777

392,351

427,978

1,077,523

121,265

453,299

1,068,007

160,103

4,388,303

All other

66,043

43,392

33,804

113,763

3,628

18,373

99,599

9,235

387,837

     Total loans

$  1,843,092

$  1,328,881

$  1,503,037

$  3,710,327

$    541,424

$  1,157,257

$  5,165,159

$    178,244

$  15,427,421

                   

Loan growth, excluding loans acquired during

                 

    the quarter (annualized)

28.32%

32.98%

34.25%

27.87%

24.31%

42.95%

40.77%

10.58%

34.01%

Loan growth, excluding PPP loans (annualized)

(6.46%)

2.87%

(10.34%)

(1.16%)

3.26%

(1.99%)

8.17%

(45.62%)

0.28%

                   

NON-PERFORMING LOANS AND LEASES:

                 

Commercial and industrial

                 

   Commercial and industrial-non real estate

$           594

$        1,569

$        1,193

$        1,787

$        1,457

$           433

$      10,311

$           201

$        17,545

   Commercial and industrial-owner occupied

3,278

2,444

622

3,375

163

94

12,661

-

22,637

     Total commercial and industrial

3,872

4,013

1,815

5,162

1,620

527

22,972

201

40,182

Commercial real estate

                 

   Agricultural

410

727

223

251

-

-

4,128

-

5,739

   Construction, acquisition and development

203

182

2,404

161

-

462

6,579

-

9,991

   Commercial real estate

3,320

33

5,347

1,214

-

95

38,164

-

48,173

     Total commercial real estate

3,933

942

7,974

1,626

-

557

48,871

-

63,903

Consumer

                 

   Consumer mortgages

8,065

3,756

2,579

14,124

149

3,010

6,400

1,273

39,356

   Home equity

243

259

390

997

188

965

100

-

3,142

   Credit cards

-

-

-

-

-

-

-

1,039

1,039

     Total consumer

8,308

4,015

2,969

15,121

337

3,975

6,500

2,312

43,537

All other

204

3

2

108

-

16

247

3

583

     Total loans

$      16,317

$        8,973

$      12,760

$      22,017

$        1,957

$        5,075

$      78,590

$        2,516

$      148,205

                   

NON-PERFORMING LOANS AND LEASES

                 

   AS A PERCENTAGE OF OUTSTANDING:

                 

Commercial and industrial

                 

   Commercial and industrial-non real estate

0.21%

0.67%

0.33%

0.22%

1.53%

0.23%

0.97%

3.43%

0.58%

   Commercial and industrial-owner occupied

1.21%

1.31%

0.24%

0.53%

0.25%

0.07%

1.70%

N/A

0.99%

     Total commercial and industrial

0.71%

0.96%

0.29%

0.36%

1.02%

0.16%

1.27%

3.43%

0.75%

Commercial real estate

                 

   Agricultural

1.53%

1.02%

0.83%

0.38%

0.00%

0.00%

3.33%

0.00%

1.72%

   Construction, acquisition and development

0.13%

0.38%

3.03%

0.05%

0.00%

0.38%

0.73%

N/A

0.60%

   Commercial real estate

0.93%

0.01%

1.69%

0.18%

0.00%

0.04%

3.28%

0.00%

1.45%

     Total commercial real estate

0.73%

0.20%

1.89%

0.15%

0.00%

0.16%

2.23%

0.00%

1.20%

Consumer

                 

   Consumer mortgages

1.38%

1.09%

0.75%

1.68%

0.14%

0.93%

0.62%

1.74%

1.08%

   Home equity

0.23%

0.56%

0.46%

0.43%

1.16%

0.74%

0.27%

0.00%

0.48%

   Credit cards

N/A

N/A

N/A

N/A

N/A

N/A

N/A

1.20%

1.20%

     Total consumer

1.21%

1.02%

0.69%

1.40%

0.28%

0.88%

0.61%

1.44%

0.99%

All other

0.31%

0.01%

0.01%

0.09%

0.00%

0.09%

0.25%

0.03%

0.15%

     Total loans

0.89%

0.68%

0.85%

0.59%

0.36%

0.44%

1.52%

1.41%

0.96%

 

 

 

BancorpSouth Bank

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

                           
 

Quarter Ended

 

Year to Date

 

Jun-20

 

Mar-20

 

Dec-19

 

Sep-19

 

Jun-19

 

Jun-20

 

Jun-19

NONINTEREST REVENUE:

                         

Mortgage banking excl. MSR and MSR Hedge market value adj

$    31,930

 

$        20,553

 

$          6,938

 

$    11,283

 

$          9,167

 

$   52,483

 

$   16,076

MSR and MSR Hedge market value adjustment

(2,373)

 

(11,083)

 

3,164

 

(3,994)

 

(8,816)

 

(13,456)

 

(13,685)

Credit card, debit card and merchant fees

9,080

 

9,176

 

9,836

 

9,778

 

10,168

 

18,256

 

19,042

Deposit service charges

7,647

 

11,682

 

12,193

 

11,939

 

11,117

 

19,329

 

21,883

Securities gains (losses), net

62

 

(85)

 

(41)

 

117

 

59

 

(23)

 

98

Insurance commissions

33,118

 

29,603

 

27,648

 

31,512

 

33,951

 

62,721

 

64,131

Trust income

4,064

 

4,013

 

3,951

 

4,488

 

3,815

 

8,077

 

7,603

Annuity fees

54

 

55

 

136

 

184

 

245

 

109

 

510

Brokerage commissions and fees

2,303

 

2,502

 

2,530

 

1,979

 

1,846

 

4,805

 

3,428

Bank-owned life insurance

1,855

 

1,999

 

3,427

 

2,529

 

1,854

 

3,854

 

3,676

Other miscellaneous income

3,518

 

8,081

 

4,915

 

5,617

 

2,926

 

11,599

 

7,790

     Total noninterest revenue

$    91,258

 

$        76,496

 

$        74,697

 

$    75,432

 

$        66,332

 

$ 167,754

 

$ 130,552

                           

NONINTEREST EXPENSE:

                         

Salaries and employee benefits

$  108,103

 

$      108,272

 

$        97,137

 

$   101,154

 

$      100,981

 

$ 216,375

 

$ 198,209

Occupancy, net of rental income

12,890

 

12,708

 

12,267

 

12,323

 

11,988

 

25,598

 

23,539

Equipment

4,762

 

4,649

 

4,725

 

4,676

 

4,423

 

9,411

 

8,311

Deposit insurance assessments

1,962

 

1,546

 

2,200

 

2,038

 

2,165

 

3,508

 

4,905

Advertising

918

 

1,099

 

1,153

 

1,382

 

1,427

 

2,017

 

2,374

Foreclosed property expense

1,306

 

924

 

855

 

870

 

519

 

2,230

 

1,143

Telecommunications

1,512

 

1,461

 

1,504

 

1,400

 

1,419

 

2,973

 

2,759

Public relations

459

 

680

 

880

 

1,069

 

934

 

1,139

 

1,699

Data processing

9,693

 

9,646

 

10,041

 

9,066

 

7,968

 

19,339

 

16,410

Computer software

4,979

 

4,315

 

4,478

 

3,825

 

3,835

 

9,294

 

7,534

Amortization of intangibles

2,355

 

2,394

 

2,508

 

2,117

 

2,508

 

4,749

 

4,493

Legal

1,375

 

898

 

854

 

786

 

1,310

 

2,273

 

1,915

Merger expense

510

 

4,494

 

5,782

 

4,062

 

3,136

 

5,004

 

4,027

Postage and shipping

1,198

 

1,441

 

1,353

 

1,281

 

1,217

 

2,639

 

2,629

Other miscellaneous expense

10,482

 

13,479

 

16,614

 

13,565

 

13,844

 

23,961

 

27,695

     Total noninterest expense

$  162,504

 

$      168,006

 

$      162,351

 

$   159,614

 

$      157,674

 

$ 330,510

 

$ 307,642

                           

INSURANCE COMMISSIONS:

                         

Property and casualty commissions

$    23,644

 

$        21,246

 

$        19,994

 

$    22,643

 

$        23,429

 

$   44,890

 

$   44,667

Life and health commissions

6,771

 

6,175

 

5,979

 

6,116

 

7,355

 

12,946

 

13,337

Risk management income

540

 

532

 

667

 

564

 

622

 

1,072

 

1,209

Other

2,163

 

1,650

 

1,008

 

2,189

 

2,545

 

3,813

 

4,918

     Total insurance commissions

$    33,118

 

$        29,603

 

$        27,648

 

$    31,512

 

$        33,951

 

$   62,721

 

$   64,131

 

 

 

BancorpSouth Bank

Selected Additional Information

(Dollars in thousands)

(Unaudited)

           
 

Quarter Ended

 

Jun-20

Mar-20

Dec-19

Sep-19

Jun-19

MORTGAGE SERVICING RIGHTS:

         

Fair value, beginning of period

$      42,243

$        57,109

$        51,492

$      55,294

$        64,643

Additions to mortgage servicing rights:

         

   Originations of servicing assets

4,297

3,079

4,025

3,410

2,790

Changes in fair value:

         

   Due to payoffs/paydowns

(3,144)

(2,506)

(2,323)

(2,542)

(2,739)

   Due to change in valuation inputs or

         

     assumptions used in the valuation model

(2,575)

(15,438)

3,915

(4,669)

(9,399)

   Other changes in fair value

-

(1)

-

(1)

(1)

Fair value, end of period

$      40,821

$        42,243

$        57,109

$      51,492

$        55,294

           

MORTGAGE BANKING REVENUE:

         

Production revenue:

         

   Origination

$      30,194

$        17,906

$          4,326

$        8,922

$          7,016

   Servicing

4,880

5,153

4,935

4,903

4,890

   Payoffs/Paydowns

(3,144)

(2,506)

(2,323)

(2,542)

(2,739)

     Total production revenue

31,930

20,553

6,938

11,283

9,167

Market value adjustment on MSR

(2,575)

(15,438)

3,915

(4,669)

(9,399)

Market value adjustment on MSR Hedge

202

4,355

(751)

675

583

Total mortgage banking revenue

$      29,557

$          9,470

$        10,102

$        7,289

$            351

           
           
           

Mortgage loans serviced

$  7,000,425

$   6,999,383

$   6,898,195

$  6,799,186

$   6,749,416

MSR/mtg loans serviced

0.58%

0.60%

0.83%

0.76%

0.82%

           

AVAILABLE-FOR-SALE SECURITIES, at fair value

         

U.S. Government agencies

$  3,348,206

$   3,532,905

$   3,599,317

$  2,323,159

$   2,283,899

U.S. Government agency issued residential

         

   mortgage-back securities

699,864

132,902

133,375

128,677

134,648

U.S. Government agency issued commercial

         

   mortgage-back securities

759,980

595,885

609,009

115,228

94,878

Obligations of states and political subdivisions

163,121

206,648

140,273

199,382

247,307

Corporate bonds

2,000

-

-

-

-

Total available-for-sale securities

$  4,973,171

$   4,468,340

$   4,481,974

$  2,766,446

$   2,760,732

 

 

 

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 available to common shareholders, net operating income-excluding MSR, net operating income available to common shareholders-excluding MSR, pre-tax pre-provision net revenue, total operating expense, tangible shareholders' equity to tangible assets, tangible shareholders' equity to tangible assets-excluding PPP loans, tangible common shareholders' equity to tangible assets, tangible common shareholders' equity to tangible assets-excluding PPP loans, return on tangible equity, return on tangible common equity, operating return on tangible equity-excluding MSR, operating return on tangible common equity-excluding MSR,  operating return on average assets-excluding MSR, operating return on average shareholders' equity-excluding MSR, operating return on average common shareholders' equity-excluding MSR, pre-tax pre-provision net revenue to total average assets, tangible book value per common share, operating earnings per common share, operating earnings per common 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, Net Operating Income Available to Common Shareholders, Net Operating Income-Excluding MSR, and Net Operating Income Available to Common Shareholders-excluding MSR to Net Income:

                               
     

Quarter ended

 

Year to Date

     

6/30/2020

 

3/31/2020

 

12/31/2019

 

9/30/2019

 

6/30/2019

 

6/30/2020

 

6/30/2019

                               

Net income

 

$      61,160

 

$      24,261

 

$        65,849

 

$           63,757

 

$           53,057

 

$           85,421

 

$       104,655

Plus:

Merger expense, net of tax

 

383

 

3,372

 

4,339

 

3,049

 

2,354

 

3,755

 

3,023

 

Initial provision for acquired loans,

                           
 

  net of tax

 

-

 

751

 

-

 

-

 

-

 

751

 

-

Less:

Security gains(losses), net of tax

 

47

 

(64)

 

(30)

 

88

 

45

 

(17)

 

74

Net operating income

 

$      61,496

 

$      28,448

 

$        70,218

 

$           66,718

 

$           55,366

 

$           89,944

 

$       107,604

Less:

Preferred dividends

 

2,372

 

2,372

 

-

 

-

 

-

 

4,744

 

-

Net operating income available to

                           

common shareholders

 

$      59,124

 

$      26,076

 

$        70,218

 

$           66,718

 

$           55,366

 

$           85,200

 

$       107,604

                               
                               

Net operating income

 

$      61,496

 

$      28,448

 

$        70,218

 

$           66,718

 

$           55,366

 

$           89,944

 

$       107,604

Less:

MSR market value adjustment, net of tax

 

(1,781)

 

(8,318)

 

2,374

 

(2,998)

 

(6,616)

 

(10,099)

 

(10,270)

Net operating income-excluding MSR

 

$      63,277

 

$      36,766

 

$        67,844

 

$           69,716

 

$           61,982

 

$         100,043

 

$       117,874

Less:

Preferred dividends

 

2,372

 

2,372

 

-

 

-

 

-

 

4,744

 

-

Net operating income available to common

                           

shareholders-excluding MSR

 

$      60,905

 

$      34,394

 

$        67,844

 

$           69,716

 

$           61,982

 

$           95,299

 

$       117,874

                               
                               

Reconciliation of Net Income to Pre-Tax Pre-Provision Net Revenue

                     
                               

Net income

 

$      61,160

 

$      24,261

 

$        65,849

 

$           63,757

 

$           53,057

 

$           85,421

 

$       104,655

Plus:

Provision for credit losses

 

20,000

 

46,000

 

-

 

500

 

500

 

66,000

 

1,000

 

Merger expense

 

510

 

4,494

 

5,782

 

4,062

 

3,136

 

5,004

 

4,027

 

Income tax expense

 

18,164

 

5,759

 

17,271

 

18,160

 

15,118

 

23,923

 

29,826

Less:

Security gains(losses)

 

62

 

(85)

 

(41)

 

117

 

59

 

(23)

 

98

 

MSR market value adjustment

 

(2,373)

 

(11,083)

 

3,164

 

(3,994)

 

(8,816)

 

(13,456)

 

(13,685)

Pre-tax pre-provision net revenue

 

$    102,145

 

$      91,682

 

$        85,779

 

$           90,356

 

$           80,568

 

$         193,827

 

$       153,095

                               
                               

Reconciliation of Total Operating Expense to Total Noninterest Expense:

                   
                               

Total noninterest expense

 

$    162,504

 

$    168,006

 

$      162,351

 

$         159,614

 

$         157,674

 

$         330,510

 

$       307,642

Less:

Merger expense

 

510

 

4,494

 

5,782

 

4,062

 

3,136

 

5,004

 

4,027

Total operating expense

 

$    161,994

 

$    163,512

 

$      156,569

 

$         155,552

 

$         154,538

 

$         325,506

 

$       303,615

 

 

 

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

     

6/30/2020

 

3/31/2020

 

12/31/2019

 

9/30/2019

 

6/30/2019

 

6/30/2020

 

6/30/2019

Tangible assets

                           

Total assets

 

$  23,236,176

 

$   21,032,524

 

$   21,052,576

 

$  19,850,225

 

$  18,936,814

 

$  23,236,176

 

$  18,936,814

Less:  

Goodwill

 

847,984

 

848,242

 

825,679

 

822,093

 

734,473

 

847,984

 

734,473

 

Other identifiable intangible assets

 

56,989

 

59,345

 

60,008

 

61,100

 

65,930

 

56,989

 

65,930

Total tangible assets

 

$  22,331,203

 

$   20,124,937

 

$   20,166,889

 

$  18,967,032

 

$  18,136,411

 

$  22,331,203

 

$  18,136,411

Less:  

PPP loans

 

1,192,715

 

-

 

-

 

-

 

-

 

1,192,715

 

-

Total tangible assets-excluding PPP loans

 

$  21,138,488

 

$   20,124,937

 

$   20,166,889

 

$  18,967,032

 

$  18,136,411

 

$  21,138,488

 

$  18,136,411

                               

PERIOD END BALANCES:

                           

Tangible shareholders' equity

                           

Total shareholders' equity

 

$   2,732,687

 

$    2,681,904

 

$    2,685,017

 

$   2,489,427

 

$    2,327,120

 

$   2,732,687

 

$   2,327,120

Less:

Goodwill

 

847,984

 

848,242

 

825,679

 

822,093

 

734,473

 

847,984

 

734,473

 

Other identifiable intangible assets

 

56,989

 

59,345

 

60,008

 

61,100

 

65,930

 

56,989

 

65,930

Total tangible shareholders' equity

 

$   1,827,714

 

$    1,774,317

 

$    1,799,330

 

$   1,606,234

 

$    1,526,717

 

$   1,827,714

 

$   1,526,717

Less:

Preferred stock

 

166,993

 

166,993

 

167,021

 

-

 

-

 

166,993

 

-

Total tangible common shareholders' equity

 

$   1,660,721

 

$    1,607,324

 

$    1,632,309

 

$   1,606,234

 

$    1,526,717

 

$   1,660,721

 

$   1,526,717

                               

AVERAGE BALANCES:

                           

Tangible shareholders' equity

                           

Total shareholders' equity

 

$   2,738,434

 

$    2,658,699

 

$    2,572,750

 

$   2,378,882

 

$    2,298,512

 

$   2,698,567

 

$   2,255,866

Less:

Goodwill

 

848,160

 

844,635

 

823,812

 

761,084

 

735,540

 

846,398

 

715,773

 

Other identifiable intangible assets

 

58,280

 

58,805

 

60,559

 

59,253

 

49,058

 

58,542

 

49,583

Total tangible shareholders' equity

 

$   1,831,994

 

$    1,755,259

 

$    1,688,379

 

$   1,558,545

 

$    1,513,914

 

$   1,793,627

 

$   1,490,510

Less:

Preferred stock

 

166,993

 

167,021

 

74,717

 

-

 

-

 

167,007

 

-

Total tangible common shareholders' equity

 

$   1,665,001

 

$    1,588,238

 

$    1,613,662

 

$   1,558,545

 

$    1,513,914

 

$   1,626,620

 

$   1,490,510

                               

Total average assets

 

$  22,707,686

 

$   21,189,637

 

$   20,243,023

 

$  19,170,926

 

$  18,637,258

 

$  21,948,661

 

$  18,337,053

Total shares of common stock outstanding

 

102,566,301

 

102,632,484

 

104,522,804

 

104,775,876

 

100,651,798

 

102,566,301

 

100,651,798

Average shares outstanding-diluted

 

102,827,225

 

104,733,897

 

105,144,032

 

101,493,247

 

100,888,164

 

103,780,561

 

100,302,641

                               

Tangible shareholders' equity to tangible assets (1)

 

8.18%

 

8.82%

 

8.92%

 

8.47%

 

8.42%

 

8.18%

 

8.42%

Tangible shareholders' equity to tangible assets-excluding PPP loans (2)

 

8.65%

 

8.82%

 

8.92%

 

8.47%

 

8.42%

 

8.65%

 

8.42%

Tangible common shareholders' equity to tangible assets (3)

 

7.44%

 

7.99%

 

8.09%

 

8.47%

 

8.42%

 

7.44%

 

8.42%

Tangible common shareholders' equity to tangible assets-excluding PPP loans (4)

 

7.86%

 

7.99%

 

8.09%

 

8.47%

 

8.42%

 

7.86%

 

8.42%

Return on average tangible equity (5)

 

13.43%

 

5.56%

 

15.47%

 

16.23%

 

14.06%

 

9.58%

 

14.16%

Return on average tangible common equity (6)

 

14.20%

 

5.54%

 

16.19%

 

16.23%

 

14.06%

 

9.97%

 

14.16%

Operating return on average tangible equity-excluding MSR (7)

 

13.89%

 

8.42%

 

15.94%

 

17.75%

 

16.42%

 

11.22%

 

15.95%

Operating return on average tangible common equity-excluding MSR (8)

 

14.71%

 

8.71%

 

16.68%

 

17.75%

 

16.42%

 

11.78%

 

15.95%

Operating return on average assets-excluding MSR (9)

 

1.12%

 

0.70%

 

1.33%

 

1.44%

 

1.33%

 

0.92%

 

1.30%

Operating return on average shareholders' equity-excluding MSR (10)

 

9.29%

 

5.56%

 

10.46%

 

11.63%

 

10.82%

 

7.46%

 

10.54%

Operating return on average common shareholders' equity-excluding MSR (11)

 

9.53%

 

5.55%

 

10.78%

 

11.63%

 

10.82%

 

7.57%

 

10.54%

Pre-tax pre-provision net revenue to total average assets (12)

 

1.81%

 

1.74%

 

1.68%

 

1.87%

 

1.73%

 

1.78%

 

1.68%

Tangible book value per common share (13)

 

$          16.19

 

$           15.66

 

$           15.62

 

$          15.33

 

$          15.17

 

$          16.19

 

$          15.17

Operating earnings per common share (14)

 

$           0.57

 

$            0.25

 

$            0.67

 

$           0.66

 

$            0.55

 

$           0.82

 

$           1.07

Operating earnings per common share-excluding MSR (15)

 

$           0.59

 

$            0.33

 

$            0.65

 

$           0.69

 

$            0.61

 

$           0.92

 

$           1.18

                               
                               

(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)

Tangible shareholders' equity to tangible assets-excluding PPP loans 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, other identifiable intangible assets, and PPP loans.

   

(3)

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

   

(4)

Tangible common shareholders' equity to tangible assets-excluding PPP loans is defined by the Company as total shareholders' equity less preferred stock, goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill, other identifiable intangible assets, and PPP loans.

   

(5)

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

   

(6)

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

   

(7)

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

   

(8)

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

   

(9)

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

   

(10)

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.

   

(11)

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

   

(12)

Pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized pre-tax pre-provision net revenue divided by total average assets adjusted for other non-operating items included in the definition and calculation of net operating income-excluding MSR.

   

(13)

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

                               

(14)

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

                               

(15)

Operating earnings per common share-excluding MSR is defined by the Company as net operating income available to common shareholders-excluding MSR divided by average common 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, Executive Vice President and Director of Corporate Finance, 662/680-2475

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