Exhibit 99.1

News Release

 

 

Contact:
William L. Prater		Will Fisackerly
Treasurer and		Senior Vice President and
Chief Financial Officer		Director of Corporate Finance
662/680-2000		662/680-2475

BancorpSouth Announces Second Quarter 2013 Earnings of

$20.8 Million or $0.22 per Diluted Share

TUPELO, Miss., July 22, 2013/PRNewswire — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and six months ended June 30, 2013.

Highlights for the second quarter of 2013 included:

 

•

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

 

•

Announced the results of a Voluntary Early Retirement Program (“VERO”), which resulted in a pre-tax charge of $10.9 million, or $0.07 per share net of tax, during the quarter and is expected to result in fully phased-in annual pre-tax savings of approximately $9 million, or $0.06 per share net of tax.

 

•

Announced BancorpSouth Capital Trust I will redeem all of its outstanding 8.15 percent trust preferred securities (“TRUPS”) on August 12, 2013, which is expected to result in an annual reduction of interest expense for the Company of $9.1 million, or $0.06 per share net of tax.

 

•

Generated net loan growth of $97.2 million, or 4.5 percent annualized.

 

•

Mortgage production of $435.0 million and mortgage sales of $424.4 million, which contributed to mortgage lending revenue of $17.9 million for the quarter, including a positive mortgage servicing rights (“MSR”) valuation adjustment of $5.3 million.

 

•

Insurance commission revenue of $25.9 million, which represents an increase of $2.9 million, or 12.6 percent, on a comparable-quarter basis.

 

•

Non-performing loans and leases (“NPLs”) declined $39.1 million, or 18.9 percent, compared to the first quarter of 2013, while non-performing assets (“NPAs”) decreased $47.0 million, or 15.5 percent, over the same period.

 

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

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BXS Announces Second Quarter Results

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July 22, 2013

 

The Company reported net income of $20.8 million, or $0.22 per diluted share, for the second quarter of 2013 compared with net income of $20.6 million, or $0.22 per diluted share, for the second quarter of 2012 and net income of $20.8 million, or $0.22 per diluted share, for the first quarter of 2013. Additionally, the Company reported net income of $41.6 million, or $0.44 per diluted share, for the first six months of 2013 compared to $43.5 million, or $0.47 per diluted share, for the first six months of 2012.

“Much progress was made during the second quarter towards improving our cost structure and turning our attention toward growth,” remarked Dan Rollins, Chief Executive Officer. “We made two very significant announcements during the quarter. The VERO and the TRUPS repayment are two items on which we have worked diligently. These two initiatives are expected to result in annual savings of over $18 million for our Company. We are also pleased to report quarter-over-quarter loan growth for the first time in over three years. We’ve consistently communicated to our team the importance of growing our Company while improving operating efficiency.”

Earnings for the quarter benefitted from continued solid performance from noninterest lines of business. Mortgage production totaled $435.0 million for the quarter, which contributed to mortgage lending revenue of $17.9 million for the quarter, including a positive MSR valuation adjustment of $5.3 million. Insurance commission revenue totaled $25.9 million for the second quarter, which represents an increase of $2.9 million, or 12.6 percent, compared to $23.0 million for the second quarter of last year.

Rollins added, “We also continue to be encouraged by the pace at which our credit team is working through the remaining problem assets.” Earnings for the quarter reflect a provision for credit losses of $3.0 million, which is a decrease from $6.0 million for the second quarter of 2012 and $4.0 million for the first quarter of 2013. NPLs declined $39.1 million, or 18.9 percent, during the second quarter of 2013 to $167.9 million compared with $207.0 million at March 31, 2013 and declined $99.0 million, or 37.1 percent, from $266.9 million at June 30, 2012. In addition, total NPAs declined $47.0 million, or 15.5 percent, to $256.4 million at June 30, 2013 compared with $303.3 million at March 31, 2013 and declined $154.2 million, or 37.6 percent, from $410.6 million at June 30, 2012. Net charge-offs declined to $4.6 million for the second quarter of 2013 compared with $5.9 million for the first quarter of 2013 and $11.9 million for the second quarter of 2012. Net charge-offs during the second quarter of 2013 included $4.3 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 $98.2 million for the second quarter of 2013, a decrease of 6.2 percent from $104.7 million for the second quarter of 2012 and an increase of 0.1 percent from $98.1 million for the first quarter of 2013. The fully taxable equivalent net interest margin was 3.36 percent for the second quarter of 2013 compared to 3.65 percent for the second quarter of 2012 and 3.37 percent for the first quarter of 2013. Yields on loans and leases declined to 4.62 percent for the second quarter of 2013 compared with 4.99 percent for the second quarter of 2012 and 4.70 percent for the first quarter of 2013 while yields on total interest earning assets declined to

 

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BXS Announces Second Quarter Results

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July 22, 2013

 

3.82 percent for the second quarter of 2013 compared with 4.27 percent for the second quarter of 2012 and 3.87 percent for the first quarter of 2013. These declines were partially offset by declines in the average cost of interest bearing liabilities, which was 0.61 percent for the second quarter of 2013 compared with 0.80 percent for the second quarter of 2012 and 0.66 percent for the first quarter of 2013.

Asset, Deposit and Loan Activity

Total assets were $13.2 billion at June 30, 2013 compared with $13.1 billion at June 30, 2012. Total deposits were $11.0 billion at both June 30, 2013 and June 30, 2012. Loans and leases, net of unearned income, were $8.7 billion at both June 30, 2013 and June 30, 2012.

The decrease in time deposits of $305.5 million, or 11.0 percent, at June 30, 2013 compared to June 30, 2012 was offset by significant growth in noninterest bearing demand deposits, which increased $298.7 million, or 12.9 percent, over the same period. Additionally, savings deposits increased $127.2 million, or 11.7 percent, while interest bearing demand deposits declined $115.2 million, or 2.4 percent, over the same period. As of June 30, 2013, $901.5 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 second quarter of 2013, the provision for credit losses was $3.0 million, compared with $6.0 million for the second quarter of 2012 and $4.0 million for the first quarter of 2013. Net charge-offs for the second quarter of 2013 were $4.6 million, compared with $11.9 million for the second quarter of 2012 and $5.9 million for the first quarter of 2013. Recoveries of previously charged-off loans were $7.7 million for the second quarter of 2013, compared with $10.0 million for the second quarter of 2012 and $3.9 million for the first quarter of 2013. Annualized net charge-offs were 0.21 percent of average loans and leases for the second quarter of 2013, compared with 0.55 percent for the second quarter of 2012 and 0.27 percent for the first quarter of 2013.

NPLs were $167.9 million, or 1.94 percent of net loans and leases, at June 30, 2013, compared with $266.9 million, or 3.06 percent of net loans and leases, at June 30, 2012, and $207.0 million, or 2.41 percent of net loans and leases, at March 31, 2013. The allowance for credit losses was $161.0 million, or 1.86 percent of net loans and leases, at June 30, 2013 compared with $175.8 million, or 2.01 percent of net loans and leases, at June 30, 2012 and $162.6 million, or 1.89 percent of net loans and leases, at March 31, 2013.

NPLs at June 30, 2013 consisted primarily of $149.5 million of nonaccrual loans, compared with $188.2 million of nonaccrual loans at March 31, 2013. Included in the reduction of nonaccrual loans during the second quarter of 2013 were payments received on nonaccrual loans of $27.5 million, compared with payments received on such loans of $23.6 million during the first quarter of 2013. NPLs at June 30, 2013 also included $1.4 million of loans 90 days or more past due and still accruing, compared with $1.1 million of such loans at March 31, 2013, and included

 

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BXS Announces Second Quarter Results

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July 22, 2013

 

restructured loans still accruing of $17.0 million at June 30, 2013, compared with $17.7 million of such loans at March 31, 2013. Early stage past due loans, representing loans 30-89 days past due, declined to $21.2 million at June 30, 2013 from $24.4 million at March 31, 2013.

At June 30, 2013, $18.8 million of NPLs were residential construction, acquisition and development (“CAD”) loans, $27.2 million were other CAD loans, $42.6 million were commercial real estate loans and $37.6 million were consumer mortgages. NPLs from all other loan types totaled $41.7 million at June 30, 2013. Included in nonaccrual loans at June 30, 2013 were $72.4 million of loans, or 48.4 percent of total nonaccrual loans, that were paying as agreed, compared with $105.9 million, or 56.3 percent, at March 31, 2013. 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.

Other real estate owned (“OREO”) decreased $7.9 million to $88.4 million during the second quarter of 2013 from $96.3 million at March 31, 2013. This net decrease reflected $9.6 million added through foreclosure, offset by sales of OREO of $15.6 million. Write-downs in the value of existing properties were $1.9 million for the second quarter of 2013 compared to $1.3 million for the first quarter of 2013. Sales of OREO during the second quarter of 2013 resulted in a net loss of $0.2 million compared to a net gain of $0.2 million for the first quarter of 2013. At June 30, 2013, OREO was carried at 43.9 percent of the aggregate loan balances at the time of foreclosure, compared with 42.2 percent at March 31, 2013.

Noninterest Revenue

Noninterest revenue was $76.1 million for the second quarter of 2013, compared with $66.5 million for the second quarter of 2012 and $71.3 million for the first quarter of 2013. These results included a positive MSR valuation adjustment of $5.3 million for the second quarter of 2013 compared with a negative adjustment of $3.8 million for the second quarter of 2012 and a positive adjustment of $1.0 million for the first quarter of 2013.

Excluding the MSR valuation adjustments, net mortgage lending revenue was $12.6 million for the second quarter of 2013, compared with $14.9 million for the second quarter of 2012 and $11.3 million for the first quarter of 2013. Mortgage origination volume for the second quarter of 2013 was $435.0 million, compared with $444.1 million for the second quarter of 2012 and $425.9 million for the first quarter of 2013.

Credit and debit card fee revenue was $8.3 million for the second quarter of 2013, compared with $7.8 million for the second quarter of 2012 and $7.5 million for the first quarter of 2013. Service charge revenue was $12.8 million for the second quarter of 2013, compared with $13.7 million for the second quarter of 2012 and $12.8 million for the first quarter of 2013. Insurance commission revenue was $25.9 million for the second quarter of 2013, compared with $23.0 million for the second quarter of 2012 and $26.6 million for the first quarter of 2013.

 

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BXS Announces Second Quarter Results

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July 22, 2013

 

Noninterest Expense

Noninterest expense for the second quarter of 2013 was $142.3 million, compared with $136.5 million for the second quarter of 2012 and $135.4 million for the first quarter of 2013. Noninterest expense for the second quarter of 2013 included a pre-tax charge of $10.9 million related to additional benefits offered under the VERO while noninterest expense for the first quarter of 2013 included a charge of $6.8 million that was recorded to increase the litigation accrual. Salaries and employee benefits expense was $78.3 million for the second quarter of 2013 compared to $77.7 million for the second quarter of 2012 and $79.4 million for the first quarter of 2013. Foreclosed property expense was $3.2 million for the second quarter of 2013 compared with $10.2 million for the second quarter of 2012 and $2.4 million for the first quarter of 2013. Deposit insurance assessments were $2.9 million for the second quarter of 2013 compared to $4.0 million for the second quarter of 2012 and $2.8 million for the first quarter of 2013.

Capital Management

BancorpSouth remains a “well capitalized” financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 14.21 percent at June 30, 2013 and total risk based capital of 15.47 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 11.04 percent at June 30, 2013, compared with 10.79 percent at June 30, 2012 and 10.94 percent at March 31, 2013. The ratio of tangible shareholders’ equity to tangible assets was 9.04 percent at June 30, 2013, compared with 8.80 percent at June 30, 2012 and 8.96 percent at March 31, 2013.

Summary

Rollins concluded, “Our team is excited about the progress that was made during the second quarter and the momentum that we have heading into the second half of the year. While the two initiatives announced during the quarter result in significant tangible expense savings for the Company, there remains much work to be done to improve our cost structure. We continue to work daily on improving operating efficiency in all of our business segments. We also continue to emphasize the importance of growth, not only with our lenders but also in all of our noninterest lines of business. We are extremely encouraged by the fact that our production efforts resulted in net loan growth for the quarter. Our team is energized and focused on continuing to enhance shareholder value.”

Conference Call

BancorpSouth will conduct a conference call to discuss its second quarter 2013 results on July 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.

 

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BXS Announces Second Quarter Results

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July 22, 2013

 

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.2 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.

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 expense savings related to the VERO, the redemption of the TRUPS, interest expense reduction related to the redemption of the TRUPS, 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 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.

 

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BXS Announces Second Quarter Results

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July 22, 2013

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

 

		Quarter Ended 6/30/2013				Quarter Ended 3/31/2013				Quarter Ended 12/31/2012				Quarter Ended 9/30/2012				Quarter Ended 6/30/2012
Earnings Summary:
Interest revenue		$	112,009			$	113,027			$	117,095			$	120,750			$	123,204
Interest expense			13,796				14,949				16,234				17,371				18,463
Net interest revenue			98,213				98,078				100,861				103,379				104,741
Provision for credit losses			3,000				4,000				6,000				6,000				6,000
Net interest revenue, after provision for credit losses			95,213				94,078				94,861				97,379				98,741
Noninterest revenue			76,109				71,318				70,901				70,420				66,468
Noninterest expense			142,251				135,371				143,219				133,788				136,506
Income before income taxes			29,071				30,025				22,543				34,011				28,703
Income tax expense			8,316				9,220				5,563				10,186				8,079
Net income		$	20,755			$	20,805			$	16,980			$	23,825			$	20,624
Balance Sheet - Period End Balances
Total assets		$	13,217,705			$	13,393,135			$	13,397,198			$	13,235,737			$	13,147,818
Total earning assets			11,961,836				12,263,743				12,179,958				12,050,190				11,906,818
Total securities			2,644,939				2,607,176				2,434,032				2,483,606				2,462,831
Loans and leases, net of unearned income			8,678,714				8,581,538				8,636,989				8,679,969				8,732,395
Allowance for credit losses			161,047				162,601				164,466				169,019				175,847
Total deposits			10,961,618				11,164,926				11,088,146				10,974,640				10,956,337
Long-term debt			33,500				33,500				33,500				33,500				33,500
Total shareholder’s equity			1,459,793				1,465,180				1,449,052				1,446,703				1,418,311
Balance Sheet - Average Balances
Total assets		$	13,146,040			$	13,249,374			$	13,143,193			$	13,019,016			$	13,018,231
Total earning assets			12,060,189				12,154,624				12,045,432				11,924,778				11,908,423
Total securities			2,616,274				2,520,414				2,454,031				2,481,201				2,520,932
Loans and leases, net of unearned income			8,588,673				8,580,329				8,635,139				8,716,646				8,735,225
Total deposits			10,938,489				11,090,989				10,938,246				10,856,524				10,908,919
Long-term debt			33,500				33,500				33,500				33,500				33,500
Total shareholder’s equity			1,475,211				1,462,140				1,454,417				1,432,157				1,403,733
Nonperforming assets:
Non-accrual loans and leases		$	149,542			$	188,190			$	207,241			$	219,738			$	240,246
Loans and leases 90+ days past due, still accruing			1,440				1,125				1,210				1,442				1,632
Restructured loans and leases, still accruing			16,953				17,702				25,099				26,147				25,071
Non-performing loans (NPLs)			167,935				207,017				233,550				247,327				266,949
Other real estate owned			88,438				96,314				103,248				128,211				143,615
Non-performing assets (NPAs)		$	256,373			$	303,331			$	336,798			$	375,538			$	410,564
Financial Ratios:
Return on average assets			0.63	%			0.64	%			0.51	%			0.73	%			0.64	%
Return on average shareholders’ equity			5.64	%			5.77	%			4.64	%			6.62	%			5.91	%
Return on tangible equity			7.12	%			7.19	%			5.84	%			8.22	%			7.33	%
Pre-tax pre-provision return on average assets			0.98	%			1.04	%			0.86	%			1.22	%			1.07	%
Non-interest income to average assets			2.32	%			2.18	%			2.15	%			2.15	%			2.05	%
Non-interest expense to average assets			4.34	%			4.14	%			4.34	%			4.09	%			4.22	%
Net interest margin-fully taxable equivalent			3.36	%			3.37	%			3.44	%			3.55	%			3.65	%
Net interest rate spread			3.21	%			3.21	%			3.26	%			3.37	%			3.47	%
Efficiency ratio (tax equivalent)			80.25	%			78.55	%			81.93	%			75.65	%			78.31	%
Loan/Deposit ratio			79.17	%			76.86	%			77.89	%			79.09	%			79.70	%
Price to earnings mult (avg)			20.34				18.74				16.16				16.75				18.86
Market value to book value			115.42	%			105.88	%			94.87	%			96.22	%			96.68	%
Market value to book value (avg)			107.59	%			98.61	%			90.83	%			96.35	%			88.82	%

 

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BXS Announces Second Quarter Results

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July 22, 2013

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

 

		Quarter Ended 6/30/2013				Quarter Ended 3/31/2013				Quarter Ended 12/31/2012				Quarter Ended 9/30/2012				Quarter Ended 6/30/2012
Credit Quality Ratios:
Net charge-offs to average loans and leases (annualized)			0.21	%			0.27	%			0.49	%			0.59	%			0.55	%
Provision for credit losses to average loans and leases (annualized)			0.14	%			0.19	%			0.28	%			0.28	%			0.27	%
Allowance for credit losses to net loans and leases			1.86	%			1.89	%			1.90	%			1.95	%			2.01	%
Allowance for credit losses to non-performing loans and leases			95.90	%			78.54	%			70.42	%			68.34	%			65.87	%
Allowance for credit losses to non-performing assets			62.82	%			53.61	%			48.83	%			45.01	%			42.83	%
Non-performing loans and leases to net loans and leases			1.94	%			2.41	%			2.70	%			2.85	%			3.06	%
Non-performing assets to net loans and leases			2.95	%			3.53	%			3.90	%			4.33	%			4.70	%
Equity Ratios:
Total shareholders’ equity to total assets			11.04	%			10.94	%			10.82	%			10.93	%			10.79	%
Tangible shareholders’ equity to tangible assets			9.04	%			8.96	%			8.83	%			8.91	%			8.80	%
Capital Adequacy:
Tier 1 capital			14.21	%			14.06	%			13.77	%			13.55	%			13.41	%
Total Capital			15.47	%			15.31	%			15.03	%			14.81	%			14.66	%
Tier 1 leverage capital			10.58	%			10.33	%			10.25	%			10.21	%			10.07	%
Estimated for current quarter
Common Share Data:
Basic earnings per share		$	0.22			$	0.22			$	0.18			$	0.25			$	0.22
Diluted earnings per share			0.22				0.22				0.18				0.25				0.22
Cash dividends per share			0.01				0.01				0.01				0.01				0.01
Book value per share			15.34				15.39				15.33				15.32				15.02
Tangible book value per share			12.28				12.33				12.23				12.22				11.99
Market value per share (last)			17.70				16.30				14.54				14.74				14.52
Market value per share (high)			18.06				16.52				15.00				15.69				14.70
Market value per share (low)			14.72				14.14				12.55				13.81				12.40
Market value per share (avg)			16.50				15.18				13.92				14.76				13.34
Dividend payout ratio			4.59	%			4.55	%			5.57	%			3.96	%			4.58	%
Total shares outstanding			95,190,797				95,174,441				94,549,867				94,440,710				94,436,377
Average shares outstanding - basic			95,177,167				94,595,897				94,496,341				94,438,433				94,436,277
Average shares outstanding - diluted			95,405,965				94,756,356				94,616,383				94,528,948				94,541,381
Yield/Rate:
(Taxable equivalent basis)
Loans, loans held for sale, and leases net of unearned income			4.62	%			4.70	%			4.76	%			4.85	%			4.99	%
Available-for-sale securities:
Taxable			1.55	%			1.70	%			1.76	%			1.86	%			2.00	%
Tax-exempt			5.47	%			5.53	%			5.42	%			5.48	%			5.76	%
Short-term investments			0.25	%			0.25	%			0.25	%			0.26	%			0.27	%
Total interest earning assets and revenue			3.82	%			3.87	%			3.97	%			4.13	%			4.27	%
Deposits:
Demand - interest bearing			0.21	%			0.26	%			0.30	%			0.33	%			0.35	%
Savings			0.14	%			0.18	%			0.22	%			0.25	%			0.26	%
Other time			1.23	%			1.27	%			1.32	%			1.38	%			1.47	%
Short-term borrowings			0.07	%			0.07	%			0.07	%			0.09	%			0.09	%
Junior subordinated debt			7.16	%			7.23	%			7.12	%			7.13	%			7.22	%
Long-term debt			4.18	%			4.21	%			4.14	%			4.14	%			4.19	%
Total interest bearing liabilities and expense			0.61	%			0.66	%			0.71	%			0.76	%			0.80	%
Interest bearing liabilities to interest earning assets			74.70	%			75.54	%			75.15	%			76.41	%			77.51	%

 

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BXS Announces Second Quarter Results

Page 9

July 22, 2013

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

 

		Jun-13				Mar-13				Dec-12				Sep-12				Jun-12
		(Dollars in thousands)
Assets
Cash and due from banks		$	268,647			$	147,947			$	223,814			$	176,529			$	224,084
Interest bearing deposits with other banks			526,608				969,506				979,800				757,207				603,458
Available-for-sale securities, at fair value			2,644,939				2,607,176				2,434,032				2,483,606				2,462,831
Loans and leases			8,711,023				8,614,791				8,672,752				8,716,715				8,771,642
Less: Unearned income			32,309				33,253				35,763				36,746				39,247
Allowance for credit losses			161,047				162,601				164,466				169,019				175,847
Net loans and leases			8,517,667				8,418,937				8,472,523				8,510,950				8,556,548
Loans held for sale			111,574				105,523				129,138				129,408				108,134
Premises and equipment, net			313,079				313,980				319,456				321,068				320,419
Accrued interest receivable			41,425				44,696				44,356				48,314				47,358
Goodwill			275,173				275,173				275,173				275,173				271,297
Bank owned life insurance			235,015				233,007				231,120				203,798				202,620
Other real estate owned			88,438				96,314				103,248				128,211				143,615
Other assets			195,140				180,876				184,538				201,473				207,454
Total Assets		$	13,217,705			$	13,393,135			$	13,397,198			$	13,235,737			$	13,147,818
Liabilities
Deposits:
Demand: Noninterest bearing		$	2,610,768			$	2,582,859			$	2,545,169			$	2,492,508			$	2,312,044
Interest bearing			4,667,041				4,840,330				4,799,496				4,697,260				4,782,243
Savings			1,210,497				1,212,736				1,145,785				1,103,490				1,083,255
Other time			2,473,312				2,529,001				2,597,696				2,681,382				2,778,795
Total deposits			10,961,618				11,164,926				11,088,146				10,974,640				10,956,337
Federal funds purchased and securities sold under agreement to repurchase			382,871				353,742				414,611				377,676				361,990
Short-term Federal Home Loan Bank borrowings and other short-term borrowing			—				—				—				—				1,500
Accrued interest payable			5,230				5,519				6,140				6,759				7,161
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			214,381				209,956				245,437				236,147				208,707
Total Liabilities			11,757,912				11,927,955				11,948,146				11,789,034				11,729,507
Shareholders’ Equity
Common stock			237,976				237,936				236,375				236,102				236,091
Capital surplus			312,074				311,091				311,909				311,271				310,388
Accumulated other comprehensive (loss) income			(39,333	)			(13,120	)			(8,646	)			5,952				1,334
Retained earnings			949,076				929,273				909,414				893,378				870,498
Total Shareholders’ Equity			1,459,793				1,465,180				1,449,052				1,446,703				1,418,311
Total Liabilities & Shareholders’ Equity		$	13,217,705			$	13,393,135			$	13,397,198			$	13,235,737			$	13,147,818

 

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BXS Announces Second Quarter Results

Page 10

July 22, 2013

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

 

		Jun-13				Mar-13				Dec-12				Sep-12				Jun-12
		(Dollars in thousands)
Assets
Cash and due from banks		$	160,615			$	169,259			$	164,801			$	152,228			$	152,907
Interest bearing deposits with other banks			765,729				963,600				849,710				605,270				574,624
Available-for-sale securities, at fair value			2,616,274				2,520,414				2,454,031				2,481,201				2,520,932
Federal funds sold and securities purchased under agreement to resell			—				—				—				2,717				—
Loans and leases			8,621,849				8,615,503				8,671,559				8,755,094				8,774,767
Less: Unearned income			33,176				35,174				36,420				38,448				39,542
Allowance for credit losses			163,252				166,210				170,081				179,283				185,209
Net loans and leases			8,425,421				8,414,119				8,465,058				8,537,363				8,550,016
Loans held for sale			89,513				90,281				106,552				118,944				77,642
Premises and equipment, net			313,147				316,672				320,439				320,234				320,731
Accrued interest receivable			39,317				40,806				43,144				44,789				45,494
Goodwill			275,173				275,173				275,173				273,867				271,297
Bank owned life insurance			233,670				231,814				208,504				203,151				202,616
Other real estate owned			91,505				97,336				119,852				134,384				155,471
Other assets			135,676				129,900				135,929				144,868				146,501
Total Assets		$	13,146,040			$	13,249,374			$	13,143,193			$	13,019,016			$	13,018,231
Liabilities
Deposits:
Demand: Noninterest bearing		$	2,522,577			$	2,463,436			$	2,482,168			$	2,328,948			$	2,248,914
Interest bearing			4,707,277				4,891,412				4,703,500				4,704,896				4,769,340
Savings			1,208,454				1,173,603				1,117,297				1,092,802				1,074,912
Other time			2,500,181				2,562,538				2,635,281				2,729,878				2,815,753
Total deposits			10,938,489				11,090,989				10,938,246				10,856,524				10,908,919
Federal funds purchased and securities sold under agreement to repurchase			399,789				360,178				401,968				388,817				374,982
Short-term Federal Home Loan Bank borrowings and other short-term borrowing			—				—				—				1,223				1,500
Accrued interest payable			5,481				7,026				7,613				8,404				8,605
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			133,258				135,229				147,137				138,079				126,680
Total Liabilities			11,670,829				11,787,234				11,688,776				11,586,859				11,614,498
Shareholders’ Equity
Common stock			237,956				236,922				236,197				236,095				236,091
Capital surplus			311,480				311,603				311,540				310,642				309,634
Accumulated other comprehensive (loss) income			(15,277	)			(10,313	)			1,260				2,900				(4,020	)
Retained earnings			941,052				923,928				905,420				882,520				862,028
Total Shareholders’ Equity			1,475,211				1,462,140				1,454,417				1,432,157				1,403,733
Total Liabilities & Shareholders’ Equity		$	13,146,040			$	13,249,374			$	13,143,193			$	13,019,016			$	13,018,231

 

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BXS Announces Second Quarter Results

Page 11

July 22, 2013

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

 

		Quarter Ended																				Year To Date
		Jun-13				Mar-13				Dec-12				Sep-12				Jun-12				Jun-13				Jun-12
INTEREST REVENUE:
Loans and leases		$	98,524			$	99,092			$	102,925			$	105,937			$	107,737			$	197,616			$	216,749
Deposits with other banks			483				602				529				399				382				1,085				783
Federal funds sold and securities purchased under agreement to resell			—				—				—				2				1				—				1
Available-for-sale securities:
Taxable			8,405				8,700				8,729				9,329				10,188				17,105				21,350
Tax-exempt			3,911				3,960				4,083				4,109				4,210				7,871				8,466
Loans held for sale			686				673				829				974				686				1,359				1,230
Total interest revenue			112,009				113,027				117,095				120,750				123,204				225,036				248,579
INTEREST EXPENSE:
Interest bearing demand			2,423				3,125				3,588				3,889				4,185				5,548				8,634
Savings			422				513				606				686				691				935				1,405
Other time			7,671				8,041				8,749				9,482				10,275				15,712				21,566
Federal funds purchased and securities sold under agreement to repurchase			70				63				72				73				66				133				129
FHLB borrowings			349				348				349				364				366				697				733
Junior subordinated debt			2,860				2,857				2,869				2,875				2,879				5,717				5,758
Other			1				2				1				2				1				3				3
Total interest expense			13,796				14,949				16,234				17,371				18,463				28,745				38,228
Net interest revenue			98,213				98,078				100,861				103,379				104,741				196,291				210,351
Provision for credit losses			3,000				4,000				6,000				6,000				6,000				7,000				16,000
Net interest revenue, after provision for credit losses			95,213				94,078				94,861				97,379				98,741				189,291				194,351
NONINTEREST REVENUE:
Mortgage lending			17,892				12,346				17,188				13,549				11,040				30,238				26,182
Credit card, debit card and merchant fees			8,324				7,523				8,125				8,270				7,787				15,847				15,310
Deposit service charges			12,824				12,832				13,875				14,189				13,697				25,656				28,813
Trust income			3,192				3,210				3,391				3,101				3,139				6,402				5,421
Security gains, net			3				19				152				39				177				22				251
Insurance commissions			25,862				26,641				20,502				23,519				22,964				52,503				46,117
Other			8,012				8,747				7,668				7,753				7,664				16,759				16,734
Total noninterest revenue			76,109				71,318				70,901				70,420				66,468				147,427				138,828
NONINTEREST EXPENSE:
Salaries and employee benefits			78,284				79,414				77,203				74,829				77,661				157,698				152,592
Occupancy, net of rental income			10,577				10,237				10,643				10,944				10,487				20,814				20,553
Equipment			4,585				4,948				5,309				5,083				5,124				9,533				10,457
Deposit insurance assessments			2,939				2,804				3,103				3,998				3,994				5,743				9,377
Voluntary early retirement expense			10,850				—				—				—				—				10,850				—
Other			35,016				37,968				46,961				38,934				39,240				72,984				79,207
Total noninterest expenses			142,251				135,371				143,219				133,788				136,506				277,622				272,186
Income before income taxes			29,071				30,025				22,543				34,011				28,703				59,096				60,993
Income tax expense			8,316				9,220				5,563				10,186				8,079				17,536				17,503
Net income		$	20,755			$	20,805			$	16,980			$	23,825			$	20,624			$	41,560			$	43,490
Net income per share: Basic		$	0.22			$	0.22			$	0.18			$	0.25			$	0.22			$	0.44			$	0.47
Diluted		$	0.22			$	0.22			$	0.18			$	0.25			$	0.22			$	0.44			$	0.47

 

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BXS Announces Second Quarter Results

Page 12

July 22, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Jun-13				Mar-13				Dec-12				Sep-12				Jun-12
LOAN AND LEASE PORTFOLIO:
Commercial and industrial		$	1,552,762			$	1,480,916			$	1,476,611			$	1,462,719			$	1,497,678
Real estate
Consumer mortgages			1,880,338				1,871,312				1,873,875				1,888,783				1,904,420
Home equity			482,068				482,398				486,074				492,833				496,245
Agricultural			237,914				249,467				256,196				257,733				251,975
Commercial and industrial-owner occupied			1,375,711				1,334,974				1,333,103				1,309,631				1,288,887
Construction, acquisition and development			709,499				728,092				735,808				823,692				835,022
Commercial real estate			1,754,841				1,739,533				1,748,881				1,738,516				1,748,748
Credit cards			103,251				98,803				104,884				101,405				101,085
All other			582,330				596,043				621,557				604,657				608,335
Total loans		$	8,678,714			$	8,581,538			$	8,636,989			$	8,679,969			$	8,732,395
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period		$	162,601			$	164,466			$	169,019			$	175,847			$	181,777
Loans and leases charged off:
Commercial and industrial			(1,008	)			(1,938	)			(2,174	)			(4,334	)			(1,582	)
Real estate
Consumer mortgages			(3,114	)			(1,614	)			(3,789	)			(2,299	)			(2,818	)
Home equity			(201	)			(602	)			(1,064	)			(270	)			(536	)
Agricultural			(327	)			(2	)			(456	)			(302	)			(386	)
Commercial and industrial-owner occupied			(830	)			(300	)			(1,421	)			(994	)			(2,732	)
Construction, acquisition and development			(2,036	)			(1,198	)			(5,286	)			(6,845	)			(9,560	)
Commercial real estate			(3,720	)			(3,141	)			(4,026	)			(2,633	)			(3,260	)
Credit cards			(557	)			(450	)			(531	)			(540	)			(588	)
All other			(462	)			(492	)			(977	)			(731	)			(438	)
Total loans charged off			(12,255	)			(9,737	)			(19,724	)			(18,948	)			(21,900	)
Recoveries:
Commercial and industrial			747				589				3,507				1,007				1,040
Real estate
Consumer mortgages			708				1,108				819				256				438
Home equity			184				260				66				37				78
Agricultural			120				13				10				53				53
Commercial and industrial-owner occupied			1,439				254				561				270				1,514
Construction, acquisition and development			360				886				1,621				2,676				1,955
Commercial real estate			3,634				339				2,208				1,443				4,504
Credit cards			184				148				144				144				121
All other			325				275				235				234				267
Total recoveries			7,701				3,872				9,171				6,120				9,970
Net charge-offs			(4,554	)			(5,865	)			(10,553	)			(12,828	)			(11,930	)
Provision charged to operating expense			3,000				4,000				6,000				6,000				6,000
Balance, end of period		$	161,047			$	162,601			$	164,466			$	169,019			$	175,847
Average loans for period		$	8,588,673			$	8,580,329			$	8,635,139			$	8,716,646			$	8,735,225
Ratio:
Net charge-offs to average loans (annualized)			0.21	%			0.27	%			0.49	%			0.59	%			0.55	%

 

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BXS Announces Second Quarter Results

Page 13

July 22, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Jun-13				Mar-13				Dec-12				Sep-12				Jun-12
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial		$	6,225			$	7,009			$	9,311			$	8,674			$	13,156
Real estate
Consumer mortgages			34,226				39,012				36,133				35,599				35,660
Home equity			3,862				4,272				3,497				3,471				2,995
Agricultural			5,007				6,667				7,587				7,190				8,390
Commercial and industrial-owner occupied			17,084				20,719				20,910				27,059				26,957
Construction, acquisition and development			39,315				51,728				66,635				92,351				104,283
Commercial real estate			40,940				55,318				57,656				40,514				44,359
Credit cards			398				418				415				465				364
All other			2,485				3,047				5,097				4,415				4,082
Total nonaccrual loans and leases		$	149,542			$	188,190			$	207,241			$	219,738			$	240,246
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and industrial		$	—			$	22			$	414			$	45			$	—
Real estate
Consumer mortgages			1,107				842				512				1,027				1,141
Home equity			—				—				—				—				—
Agricultural			—				—				10				—				—
Commercial and industrial-owner occupied			—				—				19				119				—
Construction, acquisition and development			—				—				—				—				—
Commercial real estate			120				—				—				—				—
Credit cards			213				261				228				236				324
All other			—				—				27				15				167
Total loans and leases 90+ days past due, still accruing			1,440				1,125				1,210				1,442				1,632
Restructured Loans and Leases, Still Accruing			16,953				17,702				25,099				26,147				25,071
Total non-performing loans and leases			167,935				207,017				233,550				247,327				266,949
OTHER REAL ESTATE OWNED:			88,438				96,314				103,248				128,211				143,615
Total Non-performing Assets		$	256,373			$	303,331			$	336,798			$	375,538			$	410,564
Additions to Nonaccrual Loans and Leases During the Quarter		$	21,890			$	22,294			$	44,674			$	28,918			$	41,121
Loans and Leases 30-89 Days Past Due, Still Accruing:
Commercial and industrial		$	1,517			$	1,764			$	3,080			$	6,065			$	3,040
Real estate
Consumer mortgages			11,887				11,720				13,403				14,745				14,436
Home equity			1,315				1,567				1,272				1,766				1,311
Agricultural			569				757				306				977				471
Commercial and industrial-owner occupied			1,323				956				3,498				4,859				2,745
Construction, acquisition and development			1,835				4,292				2,303				8,528				2,062
Commercial real estate			535				1,331				1,176				3,210				1,288
Credit cards			668				544				777				734				673
All other			1,591				1,473				2,422				2,861				2,544
Total Loans and Leases 30-89 days past due, still accruing		$	21,240			$	24,404			$	28,237			$	43,745			$	28,570
Credit Quality Ratios:
Provision for credit losses to average loans and leases (annualized)			0.14	%			0.19	%			0.28	%			0.28	%			0.27	%
Allowance for credit losses to net loans and leases			1.86	%			1.89	%			1.90	%			1.95	%			2.01	%
Allowance for credit losses to non-performing assets			62.82	%			53.61	%			48.83	%			45.01	%			42.83	%
Allowance for credit losses to non-performing loans and leases			95.90	%			78.54	%			70.42	%			68.34	%			65.87	%
Non-performing loans and leases to net loans and leases			1.94	%			2.41	%			2.70	%			2.85	%			3.06	%
Non-performing assets to net loans and leases			2.95	%			3.53	%			3.90	%			4.33	%			4.70	%

 

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BXS Announces Second Quarter Results

Page 14

July 22, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Jun-13				Mar-13				Dec-12				Sep-12				Jun-12
REAL ESTATE CONSTRUCTION, ACQUISITION AND DEVELOPMENT (“CAD”) PORTFOLIO:
Outstanding Balance
Multi-family construction		$	8,902			$	8,182			$	6,542			$	4,546			$	2,378
One-to-four family construction			202,603				193,032				177,392				189,561				182,648
Recreation and all other loans			42,132				42,909				44,840				62,888				66,033
Commercial construction			117,901				111,702				114,099				126,296				112,929
Commercial acquisition and development			136,174				154,997				161,546				177,887				182,570
Residential acquisition and development			201,787				217,270				231,389				262,514				288,464
Total outstanding balance		$	709,499			$	728,092			$	735,808			$	823,692			$	835,022
Nonaccrual CAD Loans
Multi-family construction		$	—			$	—			$	—			$	—			$	—
One-to-four family construction			6,193				8,154				10,609				14,171				15,490
Recreation and all other loans			800				978				1,160				1,166				380
Commercial construction			2,765				3,381				5,889				6,991				4,318
Commercial acquisition and development			14,225				14,240				17,337				21,408				21,741
Residential acquisition and development			15,332				24,975				31,640				48,615				62,354
Total nonaccrual CAD loans			39,315				51,728				66,635				92,351				104,283
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			867				—				781				787				793
Recreation and all other loans			15				17				17				20				842
Commercial construction			351				—				—				—				—
Commercial acquisition and development			2,030				2,047				458				133				260
Residential acquisition and development			3,458				5,148				4,107				4,149				4,048
Total restructured CAD loans, still accruing			6,721				7,212				5,363				5,089				5,943
Total Non-performing CAD loans		$	46,036			$	58,940			$	71,998			$	97,440			$	110,226
CAD NPL as a % of Outstanding CAD Balance
Multi-family construction			—				—				—				—				—
One-to-four family construction			3.5	%			4.2	%			6.4	%			7.9	%			8.9	%
Recreation and all other loans			1.9	%			2.3	%			2.6	%			1.9	%			1.9	%
Commercial construction			2.6	%			3.0	%			5.2	%			5.5	%			3.8	%
Commercial acquisition and development			11.9	%			10.5	%			11.0	%			12.1	%			12.1	%
Residential acquisition and development			9.3	%			13.9	%			15.4	%			20.1	%			23.0	%
Total CAD NPL as a % of outstanding CAD balance			6.5	%			8.1	%			9.8	%			11.8	%			13.2	%

 

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BXS Announces Second Quarter Results

Page 15

July 22, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		June 30, 2013
						Special
		Pass				Mention				Substandard				Doubtful				Loss				Impaired				Total
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial		$	1,504,523			$	14,918			$	29,648			$	531			$	—			$	3,142			$	1,552,762
Real estate
Consumer mortgages			1,701,566				40,526				121,497				2,979				134				13,636				1,880,338
Home equity			458,379				5,391				15,752				698				68				1,780				482,068
Agricultural			210,989				9,568				13,599				—				—				3,758				237,914
Commercial and industrial-owner occupied			1,275,037				28,413				59,568				222				—				12,471				1,375,711
Construction, acquisition and development			594,175				28,727				51,041				1,025				—				34,531				709,499
Commercial real estate			1,537,671				63,791				117,579				245				30				35,525				1,754,841
Credit cards			103,251				—				—				—				—				—				103,251
All other			566,554				5,613				8,991				523				—				649				582,330
Total loans		$	7,952,145			$	196,947			$	417,675			$	6,223			$	232			$	105,492			$	8,678,714

 

		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

 

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BXS Announces Second Quarter Results

Page 16

July 22, 2013

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		As of
		Jun-13				Mar-13				Dec-12				Sep-12				Jun-12
Unpaid principal balance of impaired loans		$	144,408			$	183,440			$	206,072			$	225,581			$	259,703
Cumulative charge-offs on impaired loans			38,916				45,649				49,344				49,442				59,326
Impaired nonaccrual loan and lease outstanding balance			105,492				137,791				156,728				176,139				200,377
Other non-accrual loans and leases not impaired			44,050				50,399				50,513				43,599				39,869
Total non-accrual loans and leases		$	149,542			$	188,190			$	207,241			$	219,738			$	240,246
Allowance for impaired loans			7,965				11,658				10,541				18,205				23,939
Nonaccrual loans and leases, net of specific reserves		$	141,577			$	176,532			$	196,700			$	201,533			$	216,307
Loans and leases 90+ days past due, still accruing		$	1,440			$	1,125			$	1,210			$	1,442			$	1,632
Restructured loans and leases, still accruing			16,953				17,702				25,099				26,147				25,071
Total non-performing loans and leases		$	167,935			$	207,017			$	233,550			$	247,327			$	266,949
Allowance for impaired loans		$	7,965			$	11,658			$	10,541			$	18,205			$	23,939
Allowance for all other loans and leases			153,082				150,943				153,925				150,814				151,908
Total allowance for credit losses		$	161,047			$	162,601			$	164,466			$	169,019			$	175,847
Outstanding balance of impaired loans		$	105,492			$	137,791			$	156,728			$	176,139			$	200,377
Allowance for impaired loans			7,965				11,658				10,541				18,205				23,939
Net book value of impaired loans		$	97,527			$	126,133			$	146,187			$	157,934			$	176,438
Net book value of impaired loans as a % of unpaid principal balance			68	%			69	%			71	%			70	%			68	%
Coverage of other non-accrual loans and leases not impaired by the allowance for all other loans and leases			348	%			299	%			305	%			346	%			381	%
Coverage of non-performing loans and leases not impaired by the allowance for all other loans and leases			245	%			218	%			200	%			212	%			228	%

 

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BXS Announces Second Quarter Results

Page 17

July 22, 2013

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)

 

		June 30, 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		$	74,206			$	162,329			$	299,752			$	39,482			$	22,287			$	80,889			$	249,640			$	624,177			$	1,552,762
Real estate
Consumer mortgages			109,591				252,400				697,450				45,578				98,699				154,150				465,992				56,478				1,880,338
Home equity			61,802				37,920				161,195				21,196				68,133				67,750				61,292				2,780				482,068
Agricultural			7,906				74,970				55,706				3,226				15,558				12,291				62,785				5,472				237,914
Commercial and industrial-owner occupied			140,843				171,035				462,805				63,546				95,645				86,590				272,879				82,368				1,375,711
Construction, acquisition and development			97,522				67,579				175,817				32,995				76,679				101,142				147,135				10,630				709,499
Commercial real estate			237,154				301,709				285,156				186,444				104,652				91,941				401,372				146,413				1,754,841
Credit cards			—				—				—				—				—				—				—				103,251				103,251
All other			30,494				75,129				156,745				2,708				52,646				40,683				94,513				129,412				582,330
Total loans		$	759,518			$	1,143,071			$	2,294,626			$	395,175			$	534,299			$	635,436			$	1,755,608			$	1,160,981			$	8,678,714
CAD PORTFOLIO:
Multi-family construction		$	—			$	—			$	8			$	—			$	—			$	5,561			$	3,333			$	—			$	8,902
One-to-four family construction			33,574				13,258				41,768				12,257				11,557				50,833				38,286				1,070				202,603
Recreation and all other loans			1,424				8,792				11,336				292				4,893				814				14,581				—				42,132
Commercial construction			22,367				15,042				22,004				2,924				9,086				15,429				26,972				4,077				117,901
Commercial acquisition and development			12,795				15,038				39,304				7,182				24,464				12,721				22,723				1,947				136,174
Residential acquisition and development			27,362				15,449				61,397				10,340				26,679				15,784				41,240				3,536				201,787
Total CAD loans		$	97,522			$	67,579			$	175,817			$	32,995			$	76,679			$	101,142			$	147,135			$	10,630			$	709,499
NON-PERFORMING LOANS AND LEASES:
Commercial and industrial		$	1,542			$	973			$	315			$	25			$	185			$	44			$	1,239			$	2,204			$	6,527
Real estate
Consumer mortgages			2,248				1,846				11,848				971				3,451				3,673				6,741				6,792				37,570
Home equity			997				110				853				132				424				1,001				343				2				3,862
Agricultural			79				3,797				318				361				472				162				254				1				5,444
Commercial and industrial-owner occupied			1,811				3,186				9,154				773				1,644				2,685				883				945				21,081
Construction, acquisition and development			11,596				1,357				6,058				6,351				12,388				2,910				3,831				1,545				46,036
Commercial real estate			8,445				7,388				3,123				13,844				6,095				678				1,855				1,167				42,595
Credit cards			—				—				—				—				—				—				—				2,320				2,320
All other			389				247				878				13				34				268				645				26				2,500
Total loans		$	27,107			$	18,904			$	32,547			$	22,470			$	24,693			$	11,421			$	15,791			$	15,002			$	167,935
NON-PERFORMING LOANS AND LEASES AS A PERCENTAGE OF OUTSTANDING:
Commercial and industrial			2.08	%			0.60	%			0.11	%			0.06	%			0.83	%			0.05	%			0.50	%			0.35	%			0.42	%
Real estate
Consumer mortgages			2.05	%			0.73	%			1.70	%			2.13	%			3.50	%			2.38	%			1.45	%			12.03	%			2.00	%
Home equity			1.61	%			0.29	%			0.53	%			0.62	%			0.62	%			1.48	%			0.56	%			0.07	%			0.80	%
Agricultural			1.00	%			5.06	%			0.57	%			11.19	%			3.03	%			1.32	%			0.40	%			0.02	%			2.29	%
Commercial and industrial-owner occupied			1.29	%			1.86	%			1.98	%			1.22	%			1.72	%			3.10	%			0.32	%			1.15	%			1.53	%
Construction, acquisition and development			11.89	%			2.01	%			3.45	%			19.25	%			16.16	%			2.88	%			2.60	%			14.53	%			6.49	%
Commercial real estate			3.56	%			2.45	%			1.10	%			7.43	%			5.82	%			0.74	%			0.46	%			0.80	%			2.43	%
Credit cards			—				—				—				—				—				—				—				2.25	%			2.25	%
All other			1.28	%			0.33	%			0.56	%			0.48	%			0.06	%			0.66	%			0.68	%			0.02	%			0.43	%
Total loans			3.57	%			1.65	%			1.42	%			5.69	%			4.62	%			1.80	%			0.90	%			1.29	%			1.94	%

 

*	Excludes the Greater Memphis Area.

 

 

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BXS Announces Second Quarter Results

Page 18

July 22, 2013

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

		June 30, 2013
		Alabama																Greater
		and Florida																Memphis								Texas and
		Panhandle				Arkansas*				Mississippi*				Missouri				Area				Tennessee*				Louisiana				Other				Total
OTHER REAL ESTATE OWNED:
Commercial and industrial		$	242			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	242
Real estate
Consumer mortgages			1,072				799				2,205				—				776				185				461				103				5,601
Home equity			—				—				166				—				—				169				—				—				335
Agricultural			875				—				—				—				1,112				2,215				—				—				4,202
Commercial and industrial-owner occupied			238				110				826				—				1,845				—				242				—				3,261
Construction, acquisition and development			13,147				1,238				12,773				157				33,456				7,839				78				234				68,922
Commercial real estate			358				314				128				2,475				1,648				145				135				—				5,203
All other			—				10				307				94				125				13				91				32				672
Total loans		$	15,932			$	2,471			$	16,405			$	2,726			$	38,962			$	10,566			$	1,007			$	369			$	88,438

 

		Quarter Ended
		Jun-13				Mar-13				Dec-12				Sep-12				Jun-12
OTHER REAL ESTATE OWNED:
Balance, beginning of period		$	96,314			$	103,248			$	128,211			$	143,615			$	167,808
Additions to foreclosed properties
New foreclosed property			9,639				2,222				8,451				6,268				6,904
Reductions in foreclosed properties
Sales			(15,641	)			(7,811	)			(27,892	)			(15,392	)			(26,165	)
Writedowns			(1,874	)			(1,345	)			(5,522	)			(6,280	)			(4,932	)
Balance, end of period		$	88,438			$	96,314			$	103,248			$	128,211			$	143,615
FORECLOSED PROPERTY EXPENSE
Loss/(gain) on sale of other real estate owned		$	166			$	(200	)		$	4,203			$	765			$	2,708
Writedown of other real estate owned			1,874				1,345				5,522				6,280				4,932
Other foreclosed property expense			1,205				1,209				2,266				1,749				2,572
Total foreclosed property expense		$	3,245			$	2,354			$	11,991			$	8,794			$	10,212

 

*	Excludes the Greater Memphis Area.

 

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BXS Announces Second Quarter Results

Page 19

July 22, 2013

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Jun-13				Mar-13				Dec-12				Sep-12				Jun-12
NONINTEREST REVENUE:
Mortgage lending		$	17,892			$	12,346			$	17,188			$	13,549			$	11,040
Credit card, debit card and merchant fees			8,324				7,523				8,125				8,270				7,787
Deposit service charges			12,824				12,832				13,875				14,189				13,697
Trust income			3,192				3,210				3,391				3,101				3,139
Securities gains, net			3				19				152				39				177
Insurance commissions			25,862				26,641				20,502				23,519				22,964
Annuity fees			543				483				418				548				635
Brokerage commissions and fees			2,068				2,093				1,715				1,782				1,779
Bank-owned life insurance			2,008				1,887				1,899				1,750				1,812
Other miscellaneous income			3,393				4,284				3,636				3,673				3,438
Total noninterest revenue		$	76,109			$	71,318			$	70,901			$	70,420			$	66,468
NONINTEREST EXPENSE:
Salaries and employee benefits		$	78,284			$	79,414			$	77,203			$	74,829			$	77,661
Occupancy, net of rental income			10,577				10,237				10,643				10,944				10,487
Equipment			4,585				4,948				5,309				5,083				5,124
Deposit insurance assessments			2,939				2,804				3,103				3,998				3,994
Voluntary early retirement expense			10,850				—				—				—				—
Advertising			1,169				743				2,045				1,081				902
Foreclosed property expense			3,245				2,354				11,991				8,794				10,212
Telecommunications			2,184				2,099				2,168				2,118				2,023
Public relations			1,175				1,005				1,304				1,309				1,355
Data processing			2,783				2,468				2,714				2,312				2,444
Computer software			2,146				1,963				2,031				1,856				1,786
Amortization of intangibles			722				743				857				860				742
Legal			3,896				9,366				3,133				3,004				981
Postage and shipping			1,074				1,135				1,117				1,060				1,033
Other miscellaneous expense			16,622				16,092				19,601				16,540				17,762
Total noninterest expense		$	142,251			$	135,371			$	143,219			$	133,788			$	136,506
INSURANCE COMMISSIONS:
Property and casualty commissions		$	18,762			$	16,878			$	14,968			$	17,704			$	16,894
Life and health commissions			5,093				4,688				4,376				4,651				4,681
Risk management income			573				650				581				698				618
Other			1,434				4,425				577				466				771
Total insurance commissions		$	25,862			$	26,641			$	20,502			$	23,519			$	22,964

 

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BXS Announces Second Quarter Results

Page 20

July 22, 2013

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Jun-13				Mar-13				Dec-12				Sep-12				Jun-12
MORTGAGE SERVICING RIGHTS:
Fair value, beginning of period		$	41,478			$	37,882			$	34,562			$	34,167			$	35,668
Additions to mortgage servicing rights:
Originations of servicing assets			4,012				4,268				5,146				5,784				4,076
Changes in fair value:
Due to payoffs/paydowns			(1,739	)			(1,705	)			(2,005	)			(2,181	)			(1,737	)
Due to change in valuation inputs or assumptions used in the valuation model			5,252				1,037				183				(3,206	)			(3,837	)
Other changes in fair value			(2	)			(4	)			(4	)			(2	)			(3	)
Fair value, end of period		$	49,001			$	41,478			$	37,882			$	34,562			$	34,167
MORTGAGE LENDING REVENUE:
Origination		$	10,471			$	9,187			$	15,131			$	15,326			$	13,119
Servicing			3,908				3,827				3,879				3,610				3,495
MSR payoffs/paydowns			(1,739	)			(1,705	)			(2,005	)			(2,181	)			(1,737	)
MSR valuation adjustment			5,252				1,037				183				(3,206	)			(3,837	)
Total mortgage lending revenue		$	17,892			$	12,346			$	17,188			$	13,549			$	11,040
Mortgage loans serviced		$	5,393,580			$	5,236,852			$	5,058,912			$	4,841,075			$	4,600,799
MSR/mtg loans serviced			0.91	%			0.79	%			0.75	%			0.71	%			0.74	%
AVAILABLE-FOR-SALE SECURITIES, at fair value
U.S. Government agencies		$	1,581,570			$	1,517,725			$	1,401,996			$	1,472,747			$	1,481,060
Government agency issued residential mortgage-back securities			292,586				334,550				366,875				338,230				360,489
Government agency issued commercial mortgage-back securities			227,381				196,459				91,445				90,306				35,895
Obligations of states and political subdivisions			535,337				550,475				565,873				574,559				577,629
Other			8,065				7,967				7,843				7,764				7,758
Total available-for-sale securities		$	2,644,939			$	2,607,176			$	2,434,032			$	2,483,606			$	2,462,831

 

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BXS Announces Second Quarter Results

Page 21

July 22, 2013

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

Certain financial information included in this press release are determined by methods other than in accordance with GAAP. Management believes such measures are relevant to understanding the capital position and performance of the Company. The non-GAAP financial measures presented in this press release are tangible shareholders’ equity to tangible assets, return on tangible equity, pre-tax pre-provision return on average assets, and tangible book value per share. Additionally, disclosure of these non-GAAP financial measures provides a meaningful base for comparability to other financial institutions. Non-GAAP financial measures are not formally defined by GAAP, and other entities may use calculation methods different than those used by the Company.

Reconciliation of Pre-tax, Pre-provision Earnings:

 

		Quarter ended
		6/30/2013				3/31/2013				12/31/2012				9/30/2012				6/30/2012
Net income		$	20,755			$	20,805			$	16,980			$	23,825			$	20,624
Plus: Provision for credit losses			3,000				4,000				6,000				6,000				6,000
Income tax expense			8,316				9,220				5,563				10,186				8,079
Pre-tax, pre-provision earnings		$	32,071			$	34,025			$	28,543			$	40,011			$	34,703

Reconciliation of Tangible Assets and Tangible Shareholders’ Equity to

Total Assets and Total Shareholders’ Equity:

 

		Quarter ended
		6/30/2013				3/31/2013				12/31/2012				9/30/2012				6/30/2012
Tangible assets
Total assets		$	13,217,705			$	13,393,135			$	13,397,198			$	13,235,737			$	13,147,818
Less: Goodwill			275,173				275,173				275,173				275,173				271,297
Other identifiable intangible assets			15,865				16,586				17,329				17,932				15,108
Total tangible assets		$	12,926,667			$	13,101,376			$	13,104,696			$	12,942,632			$	12,861,413
Tangible shareholders’ equity
Total shareholders’ equity		$	1,459,793			$	1,465,180			$	1,449,052			$	1,446,703			$	1,418,311
Less: Goodwill			275,173				275,173				275,173				275,173				271,297
Other identifiable intangible assets			15,865				16,586				17,329				17,932				15,108
Total tangible shareholders’ equity		$	1,168,755			$	1,173,421			$	1,156,550			$	1,153,598			$	1,131,906
Total average assets		$	13,146,040			$	13,249,374			$	13,143,193			$	13,019,016			$	13,018,231
Total common shares outstanding			95,190,797				95,174,441				94,549,867				94,440,710				94,436,377
Tangible shareholders’ equity to tangible assets*			9.04	%			8.96	%			8.83	%			8.91	%			8.80	%
Return on tangible equity**			7.12	%			7.19	%			5.84	%			8.22	%			7.33	%
Pre-tax pre-provision return on average assets***			0.98	%			1.04	%			0.86	%			1.22	%			1.07	%
Tangible book value per share****		$	12.28			$	12.33			$	12.23			$	12.22			$	11.99

 

*	Tangible shareholder’ 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.

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

***	Pre-tax pre-provision return on average assets is defined by the Company as annualized pre-tax pre-provision earnings divided by total average assets.

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

 

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