Exhibit 99.1

News Release

 

 

Contact:
William L. Prater		Will Fisackerly
Treasurer and		First Vice President and
Chief Financial Officer		Director of Investor Relations
662/680-2000		662/680-2475

BancorpSouth Announces First Quarter 2013 Earnings of

$20.8 Million or $0.22 per Diluted Share

TUPELO, Miss., April 22, 2013/PRNewswire-FirstCall via COMTEX/ — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended March 31, 2013.

Highlights for the first quarter of 2013 included:

 

•

Net income of $20.8 million or $0.22 per diluted share.

 

•

Mortgage production of $425.9 million and mortgage sales of $445.9 million, which contributed to mortgage lending revenue of $12.3 million for the quarter, including a positive mortgage servicing rights (“MSR”) valuation adjustment of $1.0 million.

 

•

Insurance commission revenue increased $3.5 million, or 15.1 percent, on a comparable quarter basis.

 

•

Excluding an increase in our litigation reserve of $6.8 million relating to various legal matters, total noninterest expense declined $7.1 million, or 5.2 percent, on a comparable quarter basis and $14.6 million, or 10.2 percent, on a sequential quarter basis.

 

•

Non-performing loans and leases (“NPLs”) declined $26.5 million, or 11.4 percent, compared to the fourth quarter of 2012 while non-performing assets (“NPAs”) decreased $33.5 million, or 9.9 percent, over the same period. Both metrics have declined to balances that are approximately one half of their respective peaks, which occurred during the first quarter of 2011.

 

•

Cash collections on nonaccrual loans totaled $23.6 million for the quarter. At the end of the quarter, 56.3 percent of nonaccrual loans were paying in accordance with their contractual terms.

 

•

Capital ratios continued to rise, with Tier 1 leverage and Total risk-based capital ratios increasing to 10.33 percent and 15.31 percent, respectively.

 

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BancorpSouth, Inc.

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

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BXS Announces First Quarter Results

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April 22, 2013

 

The Company reported net income of $20.8 million, or $0.22 per diluted share, for the first quarter of 2013 compared with net income of $22.9 million, or $0.25 per diluted share, for the first quarter of 2012 and net income of $17.0 million, or $0.18 per diluted share, for the fourth quarter of 2012.

“Results for the first quarter reflect solid performance from our noninterest lines of business, particularly mortgage and insurance,” remarked Dan Rollins, Chief Executive Officer. “Mortgage production for the quarter was $425.9 million, which exceeds production for the first quarter of last year. Due to slightly declining margins, production and servicing revenue was relatively flat on a comparable quarter basis. Our insurance group produced a very strong quarter as well, reporting double-digit revenue growth compared to the first quarter of 2012. We are also making meaningful progress in several areas of the core bank. Credit-related costs, specifically the provision for credit losses and foreclosed property expense, are trending in a favorable direction. NPAs and classified assets continued to decline.”

Earnings for the quarter were adversely impacted by a litigation reserve increase of $6.8 million related to various legal matters. Excluding the impact of this charge, total noninterest expense declined $7.1 million, or 5.2 percent, compared to the first quarter of 2012 and $14.6 million, or 10.2 percent compared to the fourth quarter of 2012. Rollins added, “A significant component of the decrease in noninterest expense is related to comparable and sequential quarter reductions in foreclosed property expense, which could continue to exhibit some level of volatility. I challenged our team early on to evaluate the benefit of every dollar that we spend. We are beginning to see the results of these efforts in certain areas that are easier to impact quickly, such as public relations and advertising. We continue to work diligently on specific projects that will have a more meaningful impact. We look forward to sharing additional details regarding these initiatives at the appropriate time.”

Earnings for the quarter reflect a provision for credit losses of $4.0 million, which is a decrease from $10.0 million for the first quarter of 2012 and $6.0 million for the fourth quarter of 2012. NPLs declined $26.5 million, or 11.4 percent, during the first quarter of 2013 to $207.0 million compared with $233.6 million at December 31, 2012 and declined $78.2 million, or 27.4 percent, from $285.2 million at March 31, 2012. In addition, total NPAs declined $33.5 million, or 9.9 percent, to $303.3 million compared with $336.8 million at December 31, 2012 and declined $149.7 million, or 33.0 percent, from $453.0 million at March 31, 2012. Net charge-offs declined to $5.9 million for the first quarter of 2013 compared with $10.6 million for the fourth quarter of 2012 and $23.3 million for the first quarter of 2012. Net charge-offs during the first quarter of 2013 included $2.3 million of charge-offs of loans which had been identified and reported as impaired and were reserved for in previous quarters.

Net Interest Revenue

Net interest revenue was $98.1 million for the first quarter of 2013, a decrease of 7.1 percent from $105.6 million for the first quarter of 2012 and a decrease of 2.8 percent from $100.9 million for the fourth quarter of 2012. The fully taxable equivalent net interest margin declined to 3.37 percent for the first quarter of 2013 from 3.66 percent for the first quarter of 2012 and

 

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BXS Announces First Quarter Results

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April 22, 2013

 

3.44 percent for the fourth quarter of 2012. Declines in the net interest margin were primarily due to continued pressure on asset yields, particularly yields on loans and leases, which declined to 4.70 percent for the first quarter of 2013 compared with 5.02 percent for the first quarter of 2012 and 4.76 percent for the fourth quarter of 2012. Rollins added, “Loan growth is clearly the key to addressing the declining margin. At the end of the first quarter, we had almost $1 billion of liquidity in our overnight position earning 25 basis points. We are undertaking necessary measures to ensure that our team is focused on converting this liquidity into loans that meet our policies.”

Asset, Deposit and Loan Activity

Total assets were $13.4 billion at March 31, 2013 compared with $13.3 billion at March 31, 2012. Total deposits were $11.2 billion at March 31, 2013, an increase of 0.75 percent from $11.1 billion at March 31, 2012. Loans and leases, net of unearned income, were $8.6 billion at March 31, 2013, a decrease of 1.8 percent from $8.7 billion at March 31, 2012. The construction, acquisition, and development (“CAD”) loan portfolio, which decreased $130.0 million, or 15.2 percent, from March 31, 2012 to March 31, 2013, accounted for 83.1 percent of the decline in net loans and leases over the period.

The decrease in time deposits of $328.5 million, or 11.5 percent, at March 31, 2013 compared to March 31, 2012 was offset by significant growth in noninterest bearing demand deposits, which increased $322.8 million, or 14.3 percent, over the same period. Additionally, savings deposits increased $145.5 million, or 13.6 percent, while interest bearing demand deposits declined $57.3 million, or 1.2 percent, over the same period. As of March 31, 2013, $816.9 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.65 percent.

Provision for Credit Losses and Allowance for Credit Losses

For the first quarter of 2013, the provision for credit losses was $4.0 million, compared with $10.0 million for the first quarter of 2012 and $6.0 million for the fourth quarter of 2012. Net charge-offs for the first quarter of 2013 were $5.9 million, compared with $23.3 million for the first quarter of 2012 and $10.6 million for the fourth quarter of 2012. Recoveries of previously charged-off loans were $3.9 million for the first quarter of 2013, compared with $5.5 million for the first quarter of 2012 and $9.2 million for the fourth quarter of 2012. Annualized net charge-offs were 0.27 percent of average loans and leases for the first quarter of 2013, compared with 1.06 percent for the first quarter of 2012 and 0.49 percent for the fourth quarter of 2012.

NPLs were $207.0 million, or 2.41 percent of net loans and leases, at March 31, 2013, compared with $285.2 million, or 3.26 percent of net loans and leases, at March 31, 2012, and $233.6 million, or 2.70 percent of net loans and leases, at December 31, 2012. The allowance for credit losses was $162.6 million, or 1.89 percent of net loans and leases, at March 31, 2013 compared with $181.8 million, or 2.08 percent of net loans and leases, at March 31, 2012 and $164.5 million, or 1.90 percent of net loans and leases, at December 31, 2012.

 

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BXS Announces First Quarter Results

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April 22, 2013

 

NPLs at March 31, 2013 consisted primarily of $188.2 million of nonaccrual loans, compared with $207.2 million of nonaccrual loans at December 31, 2012. Included in the reduction of nonaccrual loans during the first quarter of 2013 were payments received on nonaccrual loans of $23.6 million, compared with payments received on such loans of $31.6 million during the fourth quarter of 2012. NPLs at March 31, 2013 also included $1.1 million of loans 90 days or more past due and still accruing, compared with $1.2 million of such loans at December 31, 2012, and included restructured loans still accruing of $17.7 million at March 31, 2013, compared with $25.1 million of such loans at December 31, 2012. Early stage past due loans, representing loans 30-89 days past due, declined to $24.4 million at March 31, 2013 from $28.2 million at December 31, 2012.

At March 31, 2013, $30.1 million of NPLs were residential CAD loans, $28.8 million were other CAD loans, $56.5 million were commercial real estate loans and $41.3 million were consumer mortgages. NPLs from all other loan types totaled $50.3 million at March 31, 2013. Included in nonaccrual loans at March 31, 2013 were $105.9 million of loans, or 56.3 percent of total nonaccrual loans, that were paying as agreed, compared with $115.4 million, or 55.7 percent, at December 31, 2012. These loans were generally placed on nonaccrual status because the collateral values were less than the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or would be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values. Such loans are generally deemed to be impaired, with a specific reserve established for the difference in the balance owed and the disposition value of the collateral.

At the end of the first quarter, 73.2 percent of nonaccrual loans were determined to be collateral dependent, and after write-downs and specific reserves, the remaining book balance of these loans was 68.8 percent of the unpaid principal balance. At March 31, 2013, coverage of unimpaired nonaccrual loans by the nonspecified allowance for credit losses was 299 percent and coverage of unimpaired NPLs by the nonspecified allowance for credit losses was 218 percent.

Other real estate owned (“OREO”) decreased $6.9 million to $96.3 million during the first quarter of 2013 from $103.2 million at December 31, 2012. This net decrease reflected $2.2 million added through foreclosure, offset by sales of OREO of $7.8 million. Write-downs in the value of existing properties were $1.3 million for the first quarter of 2013 compared to $5.5 million for the fourth quarter of 2012. Sales of OREO during the first quarter of 2013 resulted in a net gain of $0.2 million compared to a net loss of $4.2 million for the fourth quarter of 2012. At March 31, 2013, OREO was carried at 42.2 percent of the aggregate loan balances at the time of foreclosure, compared with 44.0 percent at December 31, 2012.

Noninterest Revenue

Noninterest revenue was $71.3 million for the first quarter of 2013, compared with $72.4 million for the first quarter of 2012 and $70.9 million for the fourth quarter of 2012. These results included a positive MSR valuation adjustment of $1.0 million for the first quarter of 2013 compared with positive adjustments of $3.7 million for the first quarter of 2012 and $0.2 million for the fourth quarter of 2012.

 

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BXS Announces First Quarter Results

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April 22, 2013

 

Excluding the MSR valuation adjustments, net mortgage lending revenue was $11.3 million for the first quarter of 2013, compared with $11.4 million for the first quarter of 2012 and $17.0 million for the fourth quarter of 2012. Mortgage origination volume for the first quarter of 2013 was $425.9 million, compared with $395.1 million for the first quarter of 2012 and $549.4 million for the fourth quarter of 2012.

Credit and debit card fee revenue was $7.5 million for both the first quarter of 2013 and the first quarter of 2012, compared with $8.1 million for the fourth quarter of 2012. Service charge revenue was $12.8 million for the first quarter of 2013, compared with $15.1 million for the first quarter of 2012 and $13.9 million for the fourth quarter of 2012. Insurance commission revenue was $26.6 million for the first quarter of 2013, compared with $23.2 million for the first quarter of 2012 and $20.5 million for the fourth quarter of 2012. Insurance commission revenue is typically seasonally low during the fourth quarter of each year, as policy renewals are typically lower than other quarters.

Noninterest Expense

Noninterest expense for the first quarter of 2013 was $135.4 million, compared with $135.7 million for the first quarter of 2012 and $143.2 million for the fourth quarter of 2012. Salaries and employee benefits expense increased to $79.4 million for the first quarter of 2013 from $74.9 million for the first quarter of 2012 and $77.2 million for the fourth quarter of 2012. Foreclosed property expense declined to $2.4 million for the first quarter of 2013 from $8.4 million for the first quarter of 2012 and $12.0 million for the fourth quarter of 2012. Deposit insurance assessments were $2.8 million for the first quarter of 2013 compared to $5.4 million for the first quarter of 2012 and $3.1 million for the fourth quarter of 2012. Also included in noninterest expense for the first quarter was a charge of $6.8 million that was recorded to increase our litigation reserve related to various legal matters.

Capital Management

BancorpSouth remains a “well capitalized” financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 14.06 percent at March 31, 2013 and total risk based capital of 15.31 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for “well capitalized” classification. The Company’s equity capitalization consists of 100 percent common stock. BancorpSouth’s ratio of shareholders’ equity to assets was 10.94 percent at March 31, 2013, compared with 10.46 percent at March 31, 2012 and 10.82 percent at December 30, 2012. The ratio of tangible shareholders’ equity to tangible assets was 8.96 percent at March 31, 2013, compared with 8.49 percent at March 31, 2012 and 8.83 percent at December 31, 2012.

Summary

Rollins concluded, “Our first quarter results reflect continued progress towards improving profitability. Excluding the $6.8 million increase in the litigation reserve, this quarter is the most profitable quarter that the Company has had in over three years. Additionally, we’ve been able to reduce NPA levels to almost one half of what they were at their peak two years ago. While

 

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BXS Announces First Quarter Results

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April 22, 2013

 

there is still additional work to be done, we believe the appropriate measures have been taken to address credit quality issues. We continue to work daily on specific measures to help our Company achieve growth and improve operating efficiency. Our team is focused on demonstrating consistent improvement in all areas of operating performance.”

Conference Call

BancorpSouth will conduct a conference call to discuss its first quarter 2013 results on April 23, 2013, at 10:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth’s website at http://www.bancorpsouth.com. A replay of the conference call will be available at BancorpSouth’s website for at least two weeks following the call.

Forward-Looking Statements

Certain statements contained in this news release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could” or “intend.” These forward-looking statements include, without limitation, statements relating to nonaccrual loans, credit quality, foreclosed property expense, initiatives to impact our operating performance, and our use of non-GAAP financial measures.

We caution you not to place undue reliance on the forward-looking statements contained in this news release in that actual results could differ materially from those indicated in such forward-looking statements because of a variety of factors. These factors may include, but are not limited to, conditions in the financial markets and economic conditions generally, the adequacy of the Company’s provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company’s other real estate owned, limitations on the Company’s ability to declare and pay dividends, the impact of legal or administrative proceedings, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd Frank Act, and supervision of the Company’s operations, the short-term and long-term impact of changes to banking capital standards on the Company’s regulatory capital and liquidity, the impact of regulations on service charges on the Company’s core deposit accounts, the susceptibility of the Company’s business to local economic or 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 hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the Company’s ability to adapt its products and services to evolving industry standards and consumer preferences, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company’s growth strategy, interruptions or breaches in the Company’s information system security, the failure of certain

 

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BXS Announces First Quarter Results

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April 22, 2013

 

third party vendors to perform, unfavorable ratings by rating agencies, dilution caused by the Company’s issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, other factors generally understood to affect the financial results of financial services companies and other factors detailed from time to time in the Company’s press releases and filings with the Securities and Exchange Commission.

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.4 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 292 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.

 

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BXS Announces First Quarter Results

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April 22, 2013

 

BancorpSouth, Inc.

Selected Financial Data

 

		Three Months Ended
		March 31,
		2013				2012
(Dollars in thousands, except per share amounts)
Earnings Summary:
Net interest revenue		$	98,078			$	105,610
Provision for credit losses			4,000				10,000
Noninterest revenue			71,318				72,360
Noninterest expense			135,371				135,680
Income before income taxes			30,025				32,290
Income tax provision			9,220				9,424
Net income		$	20,805			$	22,866
Earnings per share: Basic		$	0.22			$	0.25
Diluted		$	0.22			$	0.25
Balance sheet data at March 31:
Total assets		$	13,393,135			$	13,307,572
Total earning assets			12,263,743				12,087,427
Loans and leases, net of unearned income			8,581,538				8,737,923
Allowance for credit losses			162,601				181,777
Total deposits			11,164,926				11,082,322
Common shareholders’ equity			1,465,180				1,392,199
Book value per share			15.39				14.74
Tangible book value per share			12.33				11.70
Average balance sheet data:
Total assets		$	13,249,374			$	13,088,358
Total earning assets			12,154,624				11,964,721
Loans and leases, net of unearned interest			8,580,329				8,791,542
Total deposits			11,090,989				11,043,952
Common shareholders’ equity			1,462,140				1,363,709
Non-performing assets at March 31:
Non-accrual loans and leases		$	188,190			$	253,227
Loans and leases 90+ days past due, still accruing			1,125				1,698
Restructured loans and leases, still accruing			17,702				30,311
Other real estate owned			96,314				167,808
Total non-performing assets			303,331				453,044
Net charge-offs as a percentage of average loans (annualized)			0.27	%			1.06	%
Performance ratios (annualized):
Return on average assets			0.64	%			0.70	%
Return on common equity			5.77	%			6.74	%
Total shareholders’ equity to total assets			10.94	%			10.46	%
Tangible shareholders’ equity to tangible assets			8.96	%			8.49	%
Net interest margin			3.37	%			3.66	%
Average shares outstanding - basic			94,595,897				91,727,524
Average shares outstanding - diluted			94,756,356				91,769,863
Cash dividends per share		$	0.01			$	0.01
Tier 1 capital			14.06	%(1)			13.13	%
Total capital			15.31	%(1)			14.39	%
Tier 1 leverage capital			10.33	%(1)			9.85	%

 

(1)	Estimated as of earnings release date

 

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BXS Announces First Quarter Results

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April 22, 2013

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

 

		Mar-13				Dec-12				Sep-12				Jun-12				Mar-12
		(Dollars in thousands)
Assets
Cash and due from banks		$	147,947			$	223,814			$	176,529			$	224,084			$	184,441
Interest bearing deposits with other banks			969,506				979,800				757,207				603,458				665,675
Available-for-sale securities, at fair value			2,607,176				2,434,032				2,483,606				2,462,831				2,573,535
Loans and leases			8,614,791				8,672,752				8,716,715				8,771,642				8,777,538
Less: Unearned income			33,253				35,763				36,746				39,247				39,615
Allowance for credit losses			162,601				164,466				169,019				175,847				181,777
Net loans and leases			8,418,937				8,472,523				8,510,950				8,556,548				8,556,146
Loans held for sale			105,523				129,138				129,408				108,134				110,294
Premises and equipment, net			313,980				319,456				321,068				320,419				321,720
Accrued interest receivable			44,696				44,356				48,314				47,358				50,008
Goodwill			275,173				275,173				275,173				271,297				271,297
Bank owned life insurance			233,007				231,120				203,798				202,620				202,698
Other real estate owned			96,314				103,248				128,211				143,615				167,808
Other assets			180,876				184,538				201,473				207,454				203,950
Total Assets		$	13,393,135			$	13,397,198			$	13,235,737			$	13,147,818			$	13,307,572
Liabilities
Deposits:
Demand: Noninterest bearing		$	2,582,859			$	2,545,169			$	2,492,508			$	2,312,044			$	2,260,012
Interest bearing			4,840,330				4,799,496				4,697,260				4,782,243				4,897,585
Savings			1,212,736				1,145,785				1,103,490				1,083,255				1,067,256
Other time			2,529,001				2,597,696				2,681,382				2,778,795				2,857,469
Total deposits			11,164,926				11,088,146				10,974,640				10,956,337				11,082,322
Federal funds purchased and securities sold under agreement to repurchase			353,742				414,611				377,676				361,990				401,089
Short-term Federal Home Loan Bank borrowings and other short-term borrowing			—				—				—				1,500				1,500
Accrued interest payable			5,519				6,140				6,759				7,161				7,652
Junior subordinated debt securities			160,312				160,312				160,312				160,312				160,312
Long-term Federal Home Loan Bank borrowings			33,500				33,500				33,500				33,500				33,500
Other liabilities			209,956				245,437				236,147				208,707				228,998
Total Liabilities			11,927,955				11,948,146				11,789,034				11,729,507				11,915,373
Shareholders’ Equity
Common stock			237,936				236,375				236,102				236,091				236,090
Capital surplus			311,091				311,909				311,271				310,388				309,426
Accumulated other comprehensive (loss)/income			(13,120	)			(8,646	)			5,952				1,334				(4,136	)
Retained earnings			929,273				909,414				893,378				870,498				850,819
Total Shareholders’ Equity			1,465,180				1,449,052				1,446,703				1,418,311				1,392,199
Total Liabilities & Shareholders’ Equity		$	13,393,135			$	13,397,198			$	13,235,737			$	13,147,818			$	13,307,572

 

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BXS Announces First Quarter Results

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April 22, 2013

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

 

		Mar-13				Dec-12				Sep-12				Jun-12				Mar-12
		(Dollars in thousands)
Assets
Cash and due from banks		$	169,259			$	164,801			$	152,228			$	152,907			$	160,827
Interest bearing deposits with other banks			963,600				849,710				605,270				574,624				603,714
Available-for-sale securities, at fair value			2,520,414				2,454,031				2,481,201				2,520,932				2,507,941
Federal funds sold and securities purchased under agreement to resell			—				—				2,717				—				274
Loans and leases			8,615,503				8,671,559				8,755,094				8,774,767				8,832,104
Less: Unearned income			35,174				36,420				38,448				39,542				40,562
Allowance for credit losses			166,210				170,081				179,283				185,209				202,158
Net loans and leases			8,414,119				8,465,058				8,537,363				8,550,016				8,589,384
Loans held for sale			90,281				106,552				118,944				77,642				61,250
Premises and equipment, net			316,672				320,439				320,234				320,731				322,641
Accrued interest receivable			40,806				43,144				44,789				45,494				47,512
Goodwill			275,173				275,173				273,867				271,297				271,297
Bank owned life insurance			231,814				208,504				203,151				202,616				200,724
Other real estate owned			97,336				119,852				134,384				155,471				170,924
Other assets			129,900				135,929				144,868				146,501				151,870
Total Assets		$	13,249,374			$	13,143,193			$	13,019,016			$	13,018,231			$	13,088,358
Liabilities
Deposits:
Demand: Noninterest bearing		$	2,463,436			$	2,482,168			$	2,328,948			$	2,248,914			$	2,139,371
Interest bearing			4,891,412				4,703,500				4,704,896				4,769,340				4,960,060
Savings			1,173,603				1,117,297				1,092,802				1,074,912				1,027,611
Other time			2,562,538				2,635,281				2,729,878				2,815,753				2,916,910
Total deposits			11,090,989				10,938,246				10,856,524				10,908,919				11,043,952
Federal funds purchased and securities sold under agreement to repurchase			360,178				401,968				388,817				374,982				358,124
Short-term Federal Home Loan Bank borrowings and other short-term borrowing			—				—				1,223				1,500				1,500
Accrued interest payable			7,026				7,613				8,404				8,605				9,392
Junior subordinated debt securities			160,312				160,312				160,312				160,312				160,312
Long-term Federal Home Loan Bank borrowings			33,500				33,500				33,500				33,500				33,500
Other liabilities			135,229				147,137				138,079				126,680				117,869
Total Liabilities			11,787,234				11,688,776				11,586,859				11,614,498				11,724,649
Shareholders’ Equity
Common stock			236,922				236,197				236,095				236,091				231,276
Capital surplus			311,603				311,540				310,642				309,634				294,973
Accumulated other comprehensive (loss) income			(10,313	)			1,260				2,900				(4,020	)			(2,269	)
Retained earnings			923,928				905,420				882,520				862,028				839,729
Total Shareholders’ Equity			1,462,140				1,454,417				1,432,157				1,403,733				1,363,709
Total Liabilities & Shareholders’ Equity		$	13,249,374			$	13,143,193			$	13,019,016			$	13,018,231			$	13,088,358

 

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BXS Announces First Quarter Results

Page 11

April 22, 2013

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

 

		Quarter Ended
		Mar-13				Dec-12				Sep-12				Jun-12				Mar-12
INTEREST REVENUE:
Loans and leases		$	99,092			$	102,925			$	105,937			$	107,737			$	109,012
Deposits with other banks			602				529				399				382				401
Federal funds sold and securities purchased under agreement to resell			—				—				2				1				—
Available-for-sale securities:
Taxable			8,700				8,729				9,329				10,188				11,162
Tax-exempt			3,960				4,083				4,109				4,210				4,256
Loans held for sale			673				829				974				686				544
Total interest revenue			113,027				117,095				120,750				123,204				125,375
INTEREST EXPENSE:
Interest bearing demand			3,125				3,588				3,889				4,185				4,449
Savings			513				606				686				691				714
Other time			8,041				8,749				9,482				10,275				11,291
Federal funds purchased and securities sold under agreement to repurchase			63				72				73				66				63
FHLB borrowings			348				349				364				366				367
Junior subordinated debt			2,857				2,869				2,875				2,879				2,879
Other			2				1				2				1				2
Total interest expense			14,949				16,234				17,371				18,463				19,765
Net interest revenue			98,078				100,861				103,379				104,741				105,610
Provision for credit losses			4,000				6,000				6,000				6,000				10,000
Net interest revenue, after provision for credit losses			94,078				94,861				97,379				98,741				95,610
NONINTEREST REVENUE:
Mortgage lending			12,346				17,188				13,549				11,040				15,142
Credit card, debit card and merchant fees			7,523				8,125				8,270				7,787				7,523
Service charges			12,832				13,875				14,189				13,697				15,116
Trust income			3,210				3,391				3,101				3,139				2,282
Security gains, net			19				152				39				177				74
Insurance commissions			26,641				20,502				23,519				22,964				23,153
Other			8,747				7,668				7,753				7,664				9,070
Total noninterest revenue			71,318				70,901				70,420				66,468				72,360
NONINTEREST EXPENSE:
Salaries and employee benefits			79,414				77,203				74,829				77,661				74,931
Occupancy, net of rental income			10,237				10,643				10,944				10,487				10,066
Equipment			4,948				5,309				5,083				5,124				5,333
Deposit insurance assessments			2,804				3,103				3,998				3,994				5,383
Other			37,968				46,961				38,934				39,240				39,967
Total noninterest expenses			135,371				143,219				133,788				136,506				135,680
Income before income taxes			30,025				22,543				34,011				28,703				32,290
Income tax expense			9,220				5,563				10,186				8,079				9,424
Net income		$	20,805			$	16,980			$	23,825			$	20,624			$	22,866
Net income per share: Basic		$	0.22			$	0.18			$	0.25			$	0.22			$	0.25
Diluted		$	0.22			$	0.18			$	0.25			$	0.22			$	0.25

 

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BXS Announces First Quarter Results

Page 12

April 22, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Mar-13				Dec-12				Sep-12				Jun-12				Mar-12
LOAN AND LEASE PORTFOLIO:
Commercial and industrial		$	1,480,916			$	1,476,611			$	1,462,719			$	1,497,678			$	1,441,727
Real estate
Consumer mortgages			1,871,312				1,873,875				1,888,783				1,904,420				1,937,997
Home equity			482,398				486,074				492,833				496,245				501,331
Agricultural			249,467				256,196				257,733				251,975				256,683
Commercial and industrial-owner occupied			1,334,974				1,333,103				1,309,631				1,288,887				1,287,542
Construction, acquisition and development			728,092				735,808				823,692				835,022				858,110
Commercial real estate			1,739,533				1,748,881				1,738,516				1,748,748				1,742,001
Credit cards			98,803				104,884				101,405				101,085				100,527
All other			596,043				621,557				604,657				608,335				612,005
Total loans		$	8,581,538			$	8,636,989			$	8,679,969			$	8,732,395			$	8,737,923
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period		$	164,466			$	169,019			$	175,847			$	181,777			$	195,118
Loans and leases charged off:
Commercial and industrial			(1,938	)			(2,174	)			(4,334	)			(1,582	)			(4,272	)
Real estate
Consumer mortgages			(1,614	)			(3,789	)			(2,299	)			(2,818	)			(4,216	)
Home equity			(602	)			(1,064	)			(270	)			(536	)			(851	)
Agricultural			(2	)			(456	)			(302	)			(386	)			(96	)
Commercial and industrial-owner occupied			(300	)			(1,421	)			(994	)			(2,732	)			(3,868	)
Construction, acquisition and development			(1,198	)			(5,286	)			(6,845	)			(9,560	)			(11,394	)
Commercial real estate			(3,141	)			(4,026	)			(2,633	)			(3,260	)			(2,809	)
Credit cards			(450	)			(531	)			(540	)			(588	)			(562	)
All other			(492	)			(977	)			(731	)			(438	)			(758	)
Total loans charged off			(9,737	)			(19,724	)			(18,948	)			(21,900	)			(28,826	)
Recoveries:
Commercial and industrial			589				3,507				1,007				1,040				1,542
Real estate
Consumer mortgages			1,108				819				256				438				323
Home equity			260				66				37				78				315
Agricultural			13				10				53				53				10
Commercial and industrial-owner occupied			254				561				270				1,514				351
Construction, acquisition and development			886				1,621				2,676				1,955				2,155
Commercial real estate			339				2,208				1,443				4,504				383
Credit cards			148				144				144				121				118
All other			275				235				234				267				288
Total recoveries			3,872				9,171				6,120				9,970				5,485
Net charge-offs			(5,865	)			(10,553	)			(12,828	)			(11,930	)			(23,341	)
Provision charged to operating expense			4,000				6,000				6,000				6,000				10,000
Balance, end of period		$	162,601			$	164,466			$	169,019			$	175,847			$	181,777
Average loans for period		$	8,580,329			$	8,635,139			$	8,716,646			$	8,735,225			$	8,791,542
Ratio:
Net charge-offs to average loans (annualized)			0.27	%			0.49	%			0.59	%			0.55	%			1.06	%

 

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BXS Announces First Quarter Results

Page 13

April 22, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Mar-13				Dec-12				Sep-12				Jun-12				Mar-12
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial		$	7,009			$	9,311			$	8,674			$	13,156			$	11,025
Real estate
Consumer mortgages			39,012				36,133				35,599				35,660				46,562
Home equity			4,272				3,497				3,471				2,995				2,687
Agricultural			6,667				7,587				7,190				8,390				4,254
Commercial and industrial-owner occupied			20,719				20,910				27,059				26,957				32,842
Construction, acquisition and development			51,728				66,635				92,351				104,283				115,649
Commercial real estate			55,318				57,656				40,514				44,359				35,715
Credit cards			418				415				465				364				509
All other			3,047				5,097				4,415				4,082				3,984
Total nonaccrual loans and leases		$	188,190			$	207,241			$	219,738			$	240,246			$	253,227
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and industrial		$	22			$	414			$	45			$	—			$	10
Real estate
Consumer mortgages			842				512				1,027				1,141				1,314
Home equity			—				—				—				—				—
Agricultural			—				10				—				—				—
Commercial and industrial-owner occupied			—				19				119				—				—
Construction, acquisition and development			—				—				—				—				—
Commercial real estate			—				—				—				—				—
Credit cards			261				228				236				324				228
All other			—				27				15				167				146
Total loans and leases 90+ days past due, still accruing			1,125				1,210				1,442				1,632				1,698
Restructured Loans and Leases, Still Accruing			17,702				25,099				26,147				25,071				30,311
Total non-performing loans and leases			207,017				233,550				247,327				266,949				285,236
OTHER REAL ESTATE OWNED:			96,314				103,248				128,211				143,615				167,808
Total Non-performing Assets		$	303,331			$	336,798			$	375,538			$	410,564			$	453,044
Additions to Nonaccrual Loans and Leases During the Quarter		$	22,294			$	44,674			$	28,918			$	41,121			$	40,392
Loans and Leases 30-89 Days Past Due, Still Accruing:
Commercial and industrial		$	1,764			$	3,080			$	6,065			$	3,040			$	4,809
Real estate
Consumer mortgages			11,720				13,403				14,745				14,436				10,736
Home equity			1,567				1,272				1,766				1,311				2,248
Agricultural			757				306				977				471				663
Commercial and industrial-owner occupied			956				3,498				4,859				2,745				3,332
Construction, acquisition and development			4,292				2,303				8,528				2,062				2,431
Commercial real estate			1,331				1,176				3,210				1,288				2,104
Credit cards			544				777				734				673				686
All other			1,473				2,422				2,861				2,544				1,983
Total Loans and Leases 30-89 days past due, still accruing		$	24,404			$	28,237			$	43,745			$	28,570			$	28,992
Credit Quality Ratios:
Provision for credit losses to average loans and leases (annualized)			0.19	%			0.28	%			0.28	%			0.27	%			0.45	%
Allowance for credit losses to net loans and leases			1.89	%			1.90	%			1.95	%			2.01	%			2.08	%
Allowance for credit losses to non-performing assets			53.61	%			48.83	%			45.01	%			42.83	%			40.12	%
Allowance for credit losses to non-performing loans and leases			78.54	%			70.42	%			68.34	%			65.87	%			63.73	%
Non-performing loans and leases to net loans and leases			2.41	%			2.70	%			2.85	%			3.06	%			3.26	%
Non-performing assets to net loans and leases			3.53	%			3.90	%			4.33	%			4.70	%			5.18	%

 

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BXS Announces First Quarter Results

Page 14

April 22, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Mar-13				Dec-12				Sep-12				Jun-12				Mar-12
REAL ESTATE CONSTRUCTION, ACQUISITION AND DEVELOPMENT (“CAD”) PORTFOLIO:
Outstanding Balance
Multi-family construction		$	8,182			$	6,542			$	4,546			$	2,378			$	4,683
One-to-four family construction			193,032				177,392				189,561				182,648				159,281
Recreation and all other loans			42,909				44,840				62,888				66,033				63,407
Commercial construction			111,702				114,099				126,296				112,929				122,173
Commercial acquisition and development			154,997				161,546				177,887				182,570				191,783
Residential acquisition and development			217,270				231,389				262,514				288,464				316,783
Total outstanding balance		$	728,092			$	735,808			$	823,692			$	835,022			$	858,110
Nonaccrual CAD Loans
Multi-family construction		$	—			$	—			$	—			$	—			$	—
One-to-four family construction			8,154				10,609				14,171				15,490				11,953
Recreation and all other loans			978				1,160				1,166				380				386
Commercial construction			3,381				5,889				6,991				4,318				3,702
Commercial acquisition and development			14,240				17,337				21,408				21,741				23,464
Residential acquisition and development			24,975				31,640				48,615				62,354				76,144
Total nonaccrual CAD loans			51,728				66,635				92,351				104,283				115,649
CAD Loans 90+ Days Past Due, Still Accruing:
Multi-family construction			—				—				—				—				—
One-to-four family construction			—				—				—				—				—
Recreation and all other loans			—				—				—				—				—
Commercial construction			—				—				—				—				—
Commercial acquisition and development			—				—				—				—				—
Residential acquisition and development			—				—				—				—				—
Total CAD loans 90+ days past due, still accruing			—				—				—				—				—
Restructured CAD Loans, Still Accruing
Multi-family construction			—				—				—				—				—
One-to-four family construction			—				781				787				793				799
Recreation and all other loans			17				17				20				842				847
Commercial construction			—				—				—				—				977
Commercial acquisition and development			2,047				458				133				260				2,975
Residential acquisition and development			5,148				4,107				4,149				4,048				106
Total restructured CAD loans, still accruing			7,212				5,363				5,089				5,943				5,704
Total Non-performing CAD loans		$	58,940			$	71,998			$	97,440			$	110,226			$	121,353
CAD NPL as a % of Outstanding CAD Balance
Multi-family construction			—				—				—				—				—
One-to-four family construction			4.2	%			6.4	%			7.9	%			8.9	%			8.0	%
Recreation and all other loans			2.3	%			2.6	%			1.9	%			1.9	%			1.9	%
Commercial construction			3.0	%			5.2	%			5.5	%			3.8	%			3.8	%
Commercial acquisition and development			10.5	%			11.0	%			12.1	%			12.1	%			13.8	%
Residential acquisition and development			13.9	%			15.4	%			20.1	%			23.0	%			24.1	%
Total CAD NPL as a % of outstanding CAD balance			8.1	%			9.8	%			11.8	%			13.2	%			14.1	%

 

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BXS Announces First Quarter Results

Page 15

April 22, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		March 31, 2013
						Special
		Pass				Mention				Substandard				Doubtful				Loss				Impaired				Total
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial		$	1,430,760			$	14,297			$	31,749			$	546			$	105			$	3,459			$	1,480,916
Real estate
Consumer mortgages			1,691,053				33,895				126,589				3,207				88				16,480				1,871,312
Home equity			458,264				5,269				15,908				893				27				2,037				482,398
Agricultural			218,018				9,508				17,097				—				—				4,844				249,467
Commercial and industrial-owner occupied			1,219,024				33,370				68,024				190				148				14,218				1,334,974
Construction, acquisition and development			577,477				35,525				68,648				626				—				45,816				728,092
Commercial real estate			1,508,593				63,186				117,806				245				—				49,703				1,739,533
Credit cards			98,803				—				—				—				—				—				98,803
All other			576,244				9,535				8,478				547				5				1,234				596,043
Total loans		$	7,778,236			$	204,585			$	454,299			$	6,254			$	373			$	137,791			$	8,581,538
		December 31, 2012
						Special
		Pass				Mention				Substandard				Doubtful				Loss				Impaired				Total
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial		$	1,426,498			$	14,663			$	29,876			$	729			$	—			$	4,845			$	1,476,611
Real estate
Consumer mortgages			1,691,682				32,840				131,141				2,907				198				15,107				1,873,875
Home equity			461,151				4,791				17,619				1,057				76				1,380				486,074
Agricultural			227,138				5,729				17,947				—				—				5,382				256,196
Commercial and industrial-owner occupied			1,202,111				31,087				82,816				369				—				16,720				1,333,103
Construction, acquisition and development			567,881				30,846				75,031				715				—				61,335				735,808
Commercial real estate			1,524,262				53,455				120,591				160				—				50,413				1,748,881
Credit cards			104,884				—				—				—				—				—				104,884
All other			600,807				8,397				10,196				601				10				1,546				621,557
Total loans		$	7,806,414			$	181,808			$	485,217			$	6,538			$	284			$	156,728			$	8,636,989

 

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BXS Announces First Quarter Results

Page 16

April 22, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		As of
		Mar-13				Dec-12				Sep-12				Jun-12				Mar-12
Unpaid principal balance of impaired loans		$	183,440			$	206,072			$	225,581			$	259,703			$	266,483
Cumulative charge-offs on impaired loans			45,649				49,344				49,442				59,326				55,371
Impaired nonaccrual loan and lease outstanding balance			137,791				156,728				176,139				200,377				211,112
Other non-accrual loans and leases not impaired			50,399				50,513				43,599				39,869				42,115
Total non-accrual loans and leases		$	188,190			$	207,241			$	219,738			$	240,246			$	253,227
Allowance for impaired loans			11,658				10,541				18,205				23,939				25,546
Nonaccrual loans and leases, net of specific reserves		$	176,532			$	196,700			$	201,533			$	216,307			$	227,681
Loans and leases 90+ days past due, still accruing		$	1,125			$	1,210			$	1,442			$	1,632			$	1,698
Restructured loans and leases, still accruing			17,702				25,099				26,147				25,071				30,311
Total non-performing loans and leases		$	207,017			$	233,550			$	247,327			$	266,949			$	285,236
Allowance for impaired loans		$	11,658			$	10,541			$	18,205			$	23,939			$	25,546
Allowance for all other loans and leases			150,943				153,925				150,814				151,908				156,231
Total allowance for credit losses		$	162,601			$	164,466			$	169,019			$	175,847			$	181,777
Outstanding balance of impaired loans		$	137,791			$	156,728			$	176,139			$	200,377			$	211,112
Allowance for impaired loans			11,658				10,541				18,205				23,939				25,546
Net book value of impaired loans		$	126,133			$	146,187			$	157,934			$	176,438			$	185,566
Net book value of impaired loans as a % of unpaid principal balance			69	%			71	%			70	%			68	%			70	%
Coverage of other non-accrual loans and leases not impaired by the allowance for all other loans and leases			299	%			305	%			346	%			381	%			371	%
Coverage of non-performing loans and leases not impaired by the allowance for all other loans and leases			218	%			200	%			212	%			228	%			211	%

 

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BXS Announces First Quarter Results

Page 17

April 22, 2013

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)

 

		March 31, 2013
		Alabama																Greater												Corporate
		and Florida																Memphis								Texas and				Banking
		Panhandle				Arkansas*				Mississippi*				Missouri				Area				Tennessee*				Louisiana				and Other				Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial		$	67,205			$	143,745			$	306,645			$	35,560			$	19,227			$	76,051			$	247,124			$	585,359			$	1,480,916
Real estate
Consumer mortgages			109,386				258,666				691,467				43,274				96,676				150,737				459,324				61,782				1,871,312
Home equity			60,717				37,540				161,317				22,605				68,087				67,101				62,430				2,601				482,398
Agricultural			8,644				75,359				63,641				2,374				16,795				12,748				64,950				4,956				249,467
Commercial and industrial-owner occupied			135,104				149,846				456,242				62,728				97,236				87,439				265,658				80,721				1,334,974
Construction, acquisition and development			98,845				67,101				204,082				36,802				75,691				92,434				144,853				8,284				728,092
Commercial real estate			215,684				331,108				273,564				193,049				105,225				90,739				387,550				142,614				1,739,533
Credit cards			—				—				—				—				—				—				—				98,803				98,803
All other			31,975				79,030				160,539				2,943				57,116				41,781				93,920				128,739				596,043
Total loans		$	727,560			$	1,142,395			$	2,317,497			$	399,335			$	536,053			$	619,030			$	1,725,809			$	1,113,859			$	8,581,538
CAD PORTFOLIO:
Multi-family construction		$	—			$	—			$	9			$	—			$	—			$	5,320			$	2,853			$	—			$	8,182
One-to-four family construction			28,912				12,121				44,563				10,123				10,075				49,110				37,077				1,051				193,032
Recreation and all other loans			1,368				8,290				11,759				297				4,445				439				16,311				—				42,909
Commercial construction			22,817				12,871				32,974				3,544				6,374				6,909				24,357				1,856				111,702
Commercial acquisition and development			16,169				17,050				48,052				8,830				26,100				12,960				23,894				1,942				154,997
Residential acquisition and development			29,579				16,769				66,725				14,008				28,697				17,696				40,361				3,435				217,270
Total CAD loans		$	98,845			$	67,101			$	204,082			$	36,802			$	75,691			$	92,434			$	144,853			$	8,284			$	728,092
NON-PERFORMING LOANS AND LEASES:
Commercial and industrial		$	1,505			$	1,004			$	443			$	36			$	238			$	62			$	1,500			$	2,640			$	7,428
Real estate
Consumer mortgages			3,425				4,969				9,289				583				2,711				3,910				8,639				7,798				41,324
Home equity			929				129				1,036				383				755				715				323				2				4,272
Agricultural			79				3,907				1,231				369				1,031				166				257				68				7,108
Commercial and industrial-owner occupied			2,331				5,132				10,075				840				1,397				2,884				1,923				966				25,548
Construction, acquisition and development			14,126				1,787				6,658				9,406				17,382				3,408				4,564				1,609				58,940
Commercial real estate			11,279				7,881				6,072				20,577				5,675				1,035				2,800				1,197				56,516
Credit cards			—				—				—				—				—				—				—				2,541				2,541
All other			397				513				896				14				681				276				536				27				3,340
Total loans		$	34,071			$	25,322			$	35,700			$	32,208			$	29,870			$	12,456			$	20,542			$	16,848			$	207,017
NON-PERFORMING LOANS AND LEASES AS A PERCENTAGE OF OUTSTANDING:
Commercial and industrial			2.24	%			0.70	%			0.14	%			0.10	%			1.24	%			0.08	%			0.61	%			0.45	%			0.50	%
Real estate
Consumer mortgages			3.13	%			1.92	%			1.34	%			1.35	%			2.80	%			2.59	%			1.88	%			12.62	%			2.21	%
Home equity			1.53	%			0.34	%			0.64	%			1.69	%			1.11	%			1.07	%			0.52	%			0.08	%			0.89	%
Agricultural			0.91	%			5.18	%			1.93	%			15.54	%			6.14	%			1.30	%			0.40	%			1.37	%			2.85	%
Commercial and industrial-owner occupied			1.73	%			3.42	%			2.21	%			1.34	%			1.44	%			3.30	%			0.72	%			1.20	%			1.91	%
Construction, acquisition and development			14.29	%			2.66	%			3.26	%			25.56	%			22.96	%			3.69	%			3.15	%			19.42	%			8.10	%
Commercial real estate			5.23	%			2.38	%			2.22	%			10.66	%			5.39	%			1.14	%			0.72	%			0.84	%			3.25	%
Credit cards			—				—				—				—				—				—				—				2.57	%			2.57	%
All other			1.24	%			0.65	%			0.56	%			0.48	%			1.19	%			0.66	%			0.57	%			0.02	%			0.56	%
Total loans			4.68	%			2.22	%			1.54	%			8.07	%			5.57	%			2.01	%			1.19	%			1.51	%			2.41	%

 

*	Excludes the Greater Memphis Area.

 

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BXS Announces First Quarter Results

Page 18

April 22, 2013

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

		March 31, 2013
		Alabama																Greater
		and Florida																Memphis								Texas and
		Panhandle				Arkansas*				Mississippi*				Missouri				Area				Tennessee*				Louisiana				Other				Total
OTHER REAL ESTATE OWNED:
Commercial and industrial		$	241			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	241
Real estate
Consumer mortgages			1,114				734				2,653				—				756				716				625				—				6,598
Home equity			—				—				44				—				—				—				—				—				44
Agricultural			870				—				—				—				1,106				2,204				174				—				4,354
Commercial and industrial-owner occupied			157				101				1,139				—				2,638				67				148				—				4,250
Construction, acquisition and development			13,605				1,167				14,586				431				35,939				8,682				1,874				455				76,739
Commercial real estate			356				1,410				4				—				833				144				134				—				2,881
All other			47				11				64				94				748				13				91				139				1,207
Total loans		$	16,390			$	3,423			$	18,490			$	525			$	42,020			$	11,826			$	3,046			$	594			$	96,314
		Quarter Ended
		Mar-13				Dec-12				Sep-12				Jun-12				Mar-12
OTHER REAL ESTATE OWNED:
Balance, beginning of period		$	103,248			$	128,211			$	143,615			$	167,808			$	173,805
Additions to foreclosed properties
New foreclosed property			2,222				8,451				6,268				6,904				10,766
Reductions in foreclosed properties
Sales			(7,811	)			(27,892	)			(15,392	)			(26,165	)			(11,771	)
Writedowns			(1,345	)			(5,522	)			(6,280	)			(4,932	)			(4,992	)
Balance, end of period		$	96,314			$	103,248			$	128,211			$	143,615			$	167,808
FORECLOSED PROPERTY EXPENSE
(Gain)/loss on sale of other real estate owned		$	(200	)		$	4,203			$	765			$	2,708			$	770
Writedown of other real estate owned			1,345				5,522				6,280				4,932				4,992
Other foreclosed property expense			1,209				2,266				1,749				2,572				2,647
Total foreclosed property expense		$	2,354			$	11,991			$	8,794			$	10,212			$	8,409

 

*	Excludes the Greater Memphis Area.

 

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BXS Announces First Quarter Results

Page 19

April 22, 2013

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Mar-13				Dec-12				Sep-12				Jun-12				Mar-12
NONINTEREST REVENUE:
Mortgage lending		$	12,346			$	17,188			$	13,549			$	11,040			$	15,142
Credit card, debit card and merchant fees			7,523				8,125				8,270				7,787				7,523
Service charges			12,832				13,875				14,189				13,697				15,116
Trust income			3,210				3,391				3,101				3,139				2,282
Securities gains, net			19				152				39				177				74
Insurance commissions			26,641				20,502				23,519				22,964				23,153
Annuity fees			483				418				548				635				642
Brokerage commissions and fees			2,093				1,715				1,782				1,779				1,438
Bank-owned life insurance			1,887				1,899				1,750				1,812				2,613
Other miscellaneous income			4,284				3,636				3,673				3,438				4,377
Total noninterest revenue		$	71,318			$	70,901			$	70,420			$	66,468			$	72,360
NONINTEREST EXPENSE:
Salaries and employee benefits		$	79,414			$	77,203			$	74,829			$	77,661			$	74,931
Occupancy, net of rental income			10,237				10,643				10,944				10,487				10,066
Equipment			4,948				5,309				5,083				5,124				5,333
Deposit insurance assessments			2,804				3,103				3,998				3,994				5,383
Advertising			743				2,045				1,081				902				841
Foreclosed property expense			2,354				11,991				8,794				10,212				8,409
Telecommunications			2,099				2,168				2,118				2,023				2,206
Public relations			1,005				1,304				1,309				1,355				1,466
Data processing			2,468				2,714				2,312				2,444				2,764
Computer software			1,963				2,031				1,856				1,786				1,803
Amortization of intangibles			743				857				860				742				763
Legal			9,366				3,133				3,004				981				2,216
Postage and shipping			1,135				1,117				1,060				1,033				1,255
Other miscellaneous expense			16,092				19,601				16,540				17,762				18,244
Total noninterest expense		$	135,371			$	143,219			$	133,788			$	136,506			$	135,680
INSURANCE COMMISSIONS:
Property and casualty commissions		$	16,878			$	14,968			$	17,704			$	16,894			$	14,430
Life and health commissions			4,688				4,376				4,651				4,681				4,724
Risk management income			650				581				698				618				655
Other			4,425				577				466				771				3,344
Total insurance commissions		$	26,641			$	20,502			$	23,519			$	22,964			$	23,153

 

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BXS Announces First Quarter Results

Page 20

April 22, 2013

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Mar-13				Dec-12				Sep-12				Jun-12				Mar-12
MORTGAGE SERVICING RIGHTS:
Fair value, beginning of period		$	37,882			$	34,562			$	34,167			$	35,668			$	30,174
Additions to mortgage servicing rights:
Originations of servicing assets			4,268				5,146				5,784				4,076				3,525
Changes in fair value:
Due to payoffs/paydowns			(1,705	)			(2,005	)			(2,181	)			(1,737	)			(1,726	)
Due to change in valuation inputs or assumptions used in the valuation model			1,037				183				(3,206	)			(3,837	)			3,697
Other changes in fair value			(4	)			(4	)			(2	)			(3	)			(2	)
Fair value, end of period		$	41,478			$	37,882			$	34,562			$	34,167			$	35,668
MORTGAGE LENDING REVENUE:
Production revenue:
Origination		$	9,187			$	15,131			$	15,326			$	13,119			$	9,720
Servicing			3,827				3,879				3,610				3,495				3,451
Payoffs/Paydowns			(1,705	)			(2,005	)			(2,181	)			(1,737	)			(1,726	)
Total production revenue			11,309				17,005				16,755				14,877				11,445
Market value adjustment			1,037				183				(3,206	)			(3,837	)			3,697
Total mortgage lending revenue		$	12,346			$	17,188			$	13,549			$	11,040			$	15,142
AVAILABLE-FOR-SALE SECURITIES, at fair value
U.S. Government agencies		$	1,517,725			$	1,401,996			$	1,472,747			$	1,481,060			$	1,578,441
Government agency issued residential mortgage-back securities			334,550				366,875				338,230				360,489				385,146
Government agency issued commercial mortgage-back securities			196,459				91,445				90,306				35,895				31,647
Obligations of states and political subdivisions			550,475				565,873				574,559				577,629				568,642
Other			7,967				7,843				7,764				7,758				9,659
Total available-for-sale securities		$	2,607,176			$	2,434,032			$	2,483,606			$	2,462,831			$	2,573,535

 

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BXS Announces First Quarter Results

Page 21

April 22, 2013

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		March 31, 2013
		Average								Yield/
(Taxable equivalent basis)		Balance				Interest				Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income		$	8,670,610			$	100,571				4.70	%
Available-for-sale securities:
Taxable			2,073,711				8,700				1.70	%
Tax-exempt			446,703				6,093				5.53	%
Short-term investments			963,600				602				0.25	%
Total interest earning assets and revenue			12,154,624				115,966				3.87	%
Other assets			1,260,960
Less: allowance for credit losses			(166,210	)
Total		$	13,249,374
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand - interest bearing		$	4,891,412			$	3,125				0.26	%
Savings			1,173,603				513				0.18	%
Other time			2,562,538				8,041				1.27	%
Short-term borrowings			360,231				65				0.07	%
Junior subordinated debt			160,312				2,857				7.23	%
Long-term debt			33,500				348				4.21	%
Total interest bearing liabilities and expense			9,181,596				14,949				0.66	%
Demand deposits - noninterest bearing			2,463,436
Other liabilities			142,202
Total liabilities			11,787,234
Shareholders’ equity			1,462,140
Total		$	13,249,374
Net interest revenue						$	101,017
Net interest margin											3.37	%
Net interest rate spread											3.21	%
Interest bearing liabilities to interest earning assets											75.54	%
Net interest tax equivalent adjustment						$	2,939

 

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BXS Announces First Quarter Results

Page 22

April 22, 2013

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		December 31, 2012
		Average								Yield/
(Taxable equivalent basis)		Balance				Interest				Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income		$	8,741,691			$	104,608				4.76	%
Available-for-sale securities:
Taxable			1,993,245				8,840				1.76	%
Tax-exempt			460,786				6,281				5.42	%
Short-term investments			849,710				528				0.25	%
Total interest earning assets and revenue			12,045,432				120,257				3.97	%
Other assets			1,267,842
Less: allowance for credit losses			(170,081	)
Total		$	13,143,193
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand - interest bearing		$	4,703,500			$	3,588				0.30	%
Savings			1,117,297				606				0.22	%
Other time			2,635,281				8,749				1.32	%
Short-term borrowings			402,024				73				0.07	%
Junior subordinated debt			160,312				2,869				7.12	%
Long-term debt			33,500				349				4.14	%
Total interest bearing liabilities and expense			9,051,914				16,234				0.71	%
Demand deposits - noninterest bearing			2,482,168
Other liabilities			154,694
Total liabilities			11,688,776
Shareholders’ equity			1,454,417
Total		$	13,143,193
Net interest revenue						$	104,023
Net interest margin											3.44	%
Net interest rate spread											3.26	%
Interest bearing liabilities to interest earning assets											75.15	%
Net interest tax equivalent adjustment						$	3,162

 

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BXS Announces First Quarter Results

Page 23

April 22, 2013

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		September 30, 2012
		Average								Yield/
(Taxable equivalent basis)		Balance				Interest				Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income		$	8,835,590			$	107,756				4.85	%
Available-for-sale securities:
Taxable			2,022,294				9,439				1.86	%
Tax-exempt			458,907				6,322				5.48	%
Short-term investments			607,987				401				0.26	%
Total interest earning assets and revenue			11,924,778				123,918				4.13	%
Other assets			1,273,521
Less: allowance for credit losses			(179,283	)
Total		$	13,019,016
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand - interest bearing		$	4,704,896			$	3,889				0.33	%
Savings			1,092,802				686				0.25	%
Other time			2,729,878				9,482				1.38	%
Short-term borrowings			390,100				90				0.09	%
Junior subordinated debt			160,312				2,875				7.13	%
Long-term debt			33,500				349				4.14	%
Total interest bearing liabilities and expense			9,111,488				17,371				0.76	%
Demand deposits - noninterest bearing			2,328,948
Other liabilities			146,423
Total liabilities			11,586,859
Shareholders’ equity			1,432,157
Total		$	13,019,016
Net interest revenue						$	106,547
Net interest margin											3.55	%
Net interest rate spread											3.37	%
Interest bearing liabilities to interest earning assets											76.41	%
Net interest tax equivalent adjustment						$	3,168

 

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BXS Announces First Quarter Results

Page 24

April 22, 2013

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		June 30, 2012
		Average								Yield/
(Taxable equivalent basis)		Balance				Interest				Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income		$	8,812,867			$	109,260				4.99	%
Available-for-sale securities:
Taxable			2,068,725				10,298				2.00	%
Tax-exempt			452,207				6,478				5.76	%
Short-term investments			574,624				383				0.27	%
Total interest earning assets and revenue			11,908,423				126,419				4.27	%
Other assets			1,295,017
Less: allowance for credit losses			(185,209	)
Total		$	13,018,231
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand - interest bearing		$	4,769,340			$	4,184				0.35	%
Savings			1,074,912				691				0.26	%
Other time			2,815,753				10,275				1.47	%
Short-term borrowings			376,545				85				0.09	%
Junior subordinated debt			160,312				2,879				7.22	%
Long-term debt			33,500				349				4.19	%
Total interest bearing liabilities and expense			9,230,362				18,463				0.80	%
Demand deposits - noninterest bearing			2,248,914
Other liabilities			135,222
Total liabilities			11,614,498
Shareholders’ equity			1,403,733
Total		$	13,018,231
Net interest revenue						$	107,956
Net interest margin											3.65	%
Net interest rate spread											3.47	%
Interest bearing liabilities to interest earning assets											77.51	%
Net interest tax equivalent adjustment						$	3,215

 

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BXS Announces First Quarter Results

Page 25

April 22, 2013

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		March 31, 2012
		Average								Yield/
(Taxable equivalent basis)		Balance				Interest				Rate
ASSETS
Loans, loans held for sale, and leases net of unearned income		$	8,852,792			$	110,407				5.02	%
Available-for-sale securities:
Taxable			2,058,859				11,272				2.20	%
Tax-exempt			449,082				6,547				5.86	%
Short-term investments			603,988				401				0.27	%
Total interest earning assets and revenue			11,964,721				128,627				4.32	%
Other assets			1,325,795
Less: allowance for credit losses			(202,158	)
Total		$	13,088,358
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand - interest bearing		$	4,960,060			$	4,449				0.36	%
Savings			1,027,611				714				0.28	%
Other time			2,916,910				11,291				1.56	%
Short-term borrowings			359,690				83				0.09	%
Junior subordinated debt			160,312				2,879				7.22	%
Long-term debt			33,500				349				4.19	%
Total interest bearing liabilities and expense			9,458,083				19,765				0.84	%
Demand deposits - noninterest bearing			2,139,371
Other liabilities			127,195
Total liabilities			11,724,649
Shareholders’ equity			1,363,709
Total		$	13,088,358
Net interest revenue						$	108,862
Net interest margin											3.66	%
Net interest rate spread											3.48	%
Interest bearing liabilities to interest earning assets											79.05	%
Net interest tax equivalent adjustment						$	3,252

 

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BXS Announces First Quarter Results

Page 26

April 22, 2013

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

 

		March 31,								December 31,
		2013				2012				2012
Tangible assets
Total assets		$	13,393,135			$	13,307,572			$	13,397,198
Less: Goodwill			275,173				271,297				275,173
Other identifiable intangible assets			16,586				15,850				17,329
Total tangible assets		$	13,101,376			$	13,020,425			$	13,104,696
Tangible shareholders’ equity
Total shareholders’ equity		$	1,465,180			$	1,392,199			$	1,449,052
Less: Goodwill			275,173				271,297				275,173
Other identifiable intangible assets			16,586				15,850				17,329
Total tangible shareholders’ equity		$	1,173,421			$	1,105,052			$	1,156,550
Total shares outstanding			95,174,441				94,436,177				94,549,867
Tangible shareholders’ equity to tangible assets*			8.96	%			8.49	%			8.83	%
Tangible book value per share**		$	12.33			$	11.70			$	12.23

 

*

BancorpSouth, Inc. utilizes the ratio of tangible shareholders’ equity to tangible assets when evaluating the performance of the Company. Tangible shareholders’ equity is defined by the Company as total shareholders’ equity less goodwill and other identifiable intangible assets. Tangible assets are defined by the Company as total assets less goodwill and other identifiable intangible assets. Management believes the ratio of tangible shareholders’ equity to tangible assets is important to investors who are interested in evaluating the adequacy of the Company’s capital levels.

**

BancorpSouth, Inc. utilizes tangible book value per share when evaluating the performance of the Company. Tangible book value per share is defined by the Company as tangible shareholders’ equity divided by total common shares outstanding. Management believes that tangible book value per share is important to investors who are interested in changes from period to period in book value per share exclusive of changes in intangible assets.

 

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