Exhibit 99.1

News Release

 

 

Contact:
William L. Prater				Will Fisackerly
Senior Executive Vice President and				Senior Vice President and
Chief Financial Officer				Director of Corporate Finance
662/680-2536				662/680-2475

BancorpSouth Announces Fourth Quarter 2014 Earnings

TUPELO, MS, January 21, 2015/PRNewswire — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and year ended December 31, 2014.

Highlights for the fourth quarter of 2014 included:

 

•

Net income of $28.7 million or $0.30 per diluted share.

 

•

Net operating income of $28.7 million or $0.30 per diluted share.

 

•

Earnings adversely impacted by negative mortgage servicing rights (“MSR”) valuation adjustment of $3.4 million.

 

•

Generated net loan growth of $202.4 million, which resulted in total net loan growth of $754.9 million, or 8.4 percent for the year.

 

•

Net interest margin remained stable at 3.60 percent compared to 3.62 percent for the third quarter of 2014.

 

•

Announced authorization of stock repurchase program through November 30, 2016 to purchase up to 6 percent or 5,764,000 shares of BancorpSouth’s outstanding common stock.

The Company reported net income of $28.7 million, or $0.30 per diluted share, for the fourth quarter of 2014 compared with net income of $27.7 million, or $0.29 per diluted share, for the fourth quarter of 2013 and net income of $28.8 million, or $0.30 per diluted share, for the third quarter of 2014. Additionally, the Company reported net income of $116.8 million, or $1.21 per diluted share, for the year ended December 31, 2014 compared to $94.1 million, or $0.99 per diluted share, for the year ended December 31, 2013.

The Company reported net operating income (excluding merger related and other non-operating expenses) of $28.7 million, or $0.30 per diluted share, for the fourth quarter of 2014 compared to $27.7 million, or $0.29 per diluted share, for the fourth quarter of 2013 and $30.8 million, or $0.32 per diluted share, for the third quarter of 2014.

- MORE -

 

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

---

BXS Announces Fourth Quarter Results

Page 2

January 21, 2015

 

“Our fourth quarter results reflect continued momentum in several key areas of our Company’s performance, highlighted by another outstanding quarter of loan production,” remarked Dan Rollins, Chairman and Chief Executive Officer. “Our lending team produced net loan growth of over $200 million, or 8 percent annualized, for the quarter which resulted in loan growth of over $750 million for the year. We are pleased with our ability to continue to maintain our net interest margin in a relatively steady range by offsetting pressure on loan yields with continued reductions in our cost of funding. Earnings for the quarter were adversely impacted by the $3.4 million MSR valuation adjustment as well as expected seasonality in our insurance revenue stream. Finally, we are pleased with the progress made toward remediating our compliance issues and are hopeful our regulators will recognize the outstanding work our team has produced.”

Net Interest Revenue

Net interest revenue was $106.4 million for the fourth quarter of 2014, an increase of 3.9 percent from $102.4 million for the fourth quarter of 2013 and an increase of 0.8 percent from $105.6 million for the third quarter of 2014. The fully taxable equivalent net interest margin was 3.60 percent for the fourth quarter of 2014 compared to 3.52 percent for the fourth quarter of 2013 and 3.62 percent for the third quarter of 2014. Yields on loans and leases declined to 4.30 percent for the fourth quarter of 2014 compared with 4.52 percent for the fourth quarter of 2013 and 4.36 percent for the third quarter of 2014, while yields on total interest earning assets were relatively flat at 3.85 percent for the fourth quarter of 2014 compared with 3.86 percent for the fourth quarter of 2013 and 3.89 percent for the third quarter of 2014. The average cost of deposits was 0.25 percent for the fourth quarter of 2014 compared to 0.34 percent for the fourth quarter of 2013 and 0.28 percent for the third quarter of 2014.

Asset, Deposit and Loan Activity

Total assets were $13.3 billion at December 31, 2014 compared with $13.0 billion at December 31, 2013. Loans and leases, net of unearned income, were $9.7 billion at December 31, 2014 compared with $9.0 billion at December 31, 2013.

Total deposits were $11.0 billion at December 31, 2014 compared with $10.8 billion at December 31, 2013. The decrease in time deposits of $319.0 million, or 13.8 percent, at December 31, 2014 compared to December 31, 2013 was offset by growth in other lower cost deposits. Noninterest bearing demand deposits increased $134.1 million, or 5.1 percent, over the same period. Additionally, savings deposits increased $97.8 million, or 7.9 percent, while interest bearing demand deposits increased $285.6 million, or 6.2 percent, over the same period. As of December 31, 2014, $659.9 million of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.66 percent.

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 3

January 21, 2015

 

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the quarter reflect no recorded provision for credit losses, which is consistent with no recorded provision for both the third quarter of 2014 and the fourth quarter of 2013. Total non-performing assets (“NPAs”) declined $5.9 million, or 5.3 percent, to $105.7 million at December 31, 2014 compared with $111.6 million at September 30, 2014 and declined $84.0 million, or 44.3 percent, from $189.7 million at December 31, 2013.

Net charge-offs for the fourth quarter of 2014 were $1.5 million, compared with $0.7 million for the fourth quarter of 2013 and $3.2 million for the third quarter of 2014. Recoveries of previously charged-off loans were $3.3 million for the fourth quarter of 2014, compared with $7.6 million for the fourth quarter of 2013 and $3.3 million for the third quarter of 2014. Annualized net charge-offs were 0.06 percent of average loans and leases for the fourth quarter of 2014, compared with 0.03 percent for the fourth quarter of 2013 and 0.13 percent for the third quarter of 2014.

Non-performing loans (“NPLs”) were $71.7 million, or 0.74 percent of net loans and leases, at December 31, 2014, compared with $120.4 million, or 1.34 percent of net loans and leases, at December 31, 2013, and $68.9 million, or 0.72 percent of net loans and leases, at September 30, 2014. The allowance for credit losses was $142.4 million, or 1.47 percent of net loans and leases, at December 31, 2014 compared with $153.2 million, or 1.71 percent of net loans and leases, at December 31, 2013 and $144.0 million, or 1.51 percent of net loans and leases, at September 30, 2014.

NPLs at December 31, 2014 consisted primarily of $58.1 million of nonaccrual loans, compared with $54.6 million of nonaccrual loans at September 30, 2014. Payments received on nonaccrual loans during the fourth quarter of 2014 totaled $8.5 million, compared with payments received on such loans of $11.9 million during the third quarter of 2014. NPLs at December 31, 2014 also included $2.8 million of loans 90 days or more past due and still accruing, compared with $1.9 million of such loans at September 30, 2014, and included restructured loans still accruing of $10.9 million at December 31, 2014, compared with $12.4 million of such loans at September 30, 2014. Early stage past due loans, representing loans 30-89 days past due, totaled $25.8 million at December 31, 2014 compared to $24.4 million at September 30, 2014.

Included in nonaccrual loans at December 31, 2014 were $30.3 million of loans, or 52.2 percent of total nonaccrual loans, that were paying as agreed, compared with $31.7 million, or 58.1 percent of total nonaccrual loans, that were paying as agreed at September 30, 2014. 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 $8.7 million to $34.0 million during the fourth quarter of 2014 from $42.7 million at September 30, 2014. This net decrease reflected $2.3

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 4

January 21, 2015

 

million of OREO added through foreclosure, offset by sales of OREO of $8.5 million. Write-downs in the value of existing properties were $2.4 million for the fourth quarter of 2014 compared to $1.6 million for the third quarter of 2014. Sales of OREO during the fourth quarter of 2014 resulted in a net loss of $1.6 million compared to a net loss of $3.3 million for the third quarter of 2014. At December 31, 2014, OREO was carried at 40.6 percent of the aggregate loan balances at the time of foreclosure, compared with 39.8 percent at September 30, 2014.

Noninterest Revenue

Noninterest revenue was $63.5 million for the fourth quarter of 2014, compared with $65.1 million for the fourth quarter of 2013 and $69.3 million for the third quarter of 2014. These results included a negative MSR valuation adjustment of $3.4 million for the fourth quarter of 2014 compared with a positive MSR valuation adjustment of $2.9 million for the fourth quarter of 2013 and a positive MSR valuation adjustment of $0.6 million for the third quarter of 2014. Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.

Excluding the MSR valuation adjustments, net mortgage lending revenue was $6.7 million for the fourth quarter of 2014, compared with $6.7 million for the fourth quarter of 2013 and $6.3 million for the third quarter of 2014. Mortgage origination volume for the fourth quarter of 2014 was $256.3 million, compared with $222.3 million for the fourth quarter of 2013 and $305.7 million for the third quarter of 2014.

Credit and debit card fee revenue was $9.9 million for the fourth quarter of 2014, compared with $8.3 million for the fourth quarter of 2013 and $9.0 million for the third quarter of 2014. Deposit service charge revenue was $12.5 million for the fourth quarter of 2014, compared with $13.6 million for the fourth quarter of 2013 and $13.1 million for the third quarter of 2014. Insurance commission revenue was $25.4 million for the fourth quarter of 2014, compared with $21.4 million for the fourth quarter of 2013 and $29.2 million for the third quarter of 2014. Wealth management revenue was $5.8 million for the fourth quarter of 2014, compared with $5.3 million for the fourth quarter of 2013 and $6.0 million for the third quarter of 2014.

Noninterest Expense

Noninterest expense for the fourth quarter of 2014 was $130.0 million, compared with $127.8 million for the fourth quarter of 2013 and $133.7 million for the third quarter of 2014. Salaries and employee benefits expense was $76.8 million for the fourth quarter of 2014 compared to $75.5 million for the fourth quarter of 2013 and $77.5 million for the third quarter of 2014. Foreclosed property expense was $4.6 million for the fourth quarter of 2014 compared with $2.8 million for the fourth quarter of 2013 and $5.7 million for the third quarter of 2014. Deposit insurance assessments were $2.4 million for the fourth quarter of 2014 compared to $2.7 million for the fourth quarter of 2013 and $2.1 million for the third quarter of 2014. Noninterest expense for the third quarter of 2014 included pre-tax costs totaling $3.1 million related to Bank Secrecy Act (“BSA”) and anti-money-laundering (“AML”) compliance remediation that were considered to be one-time in nature. This reflects the Company’s estimate of total one-time costs necessary to complete its enhancements to its BSA and AML compliance programs.

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 5

January 21, 2015

 

Capital Management

BancorpSouth is a “well capitalized” financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 13.26 percent at December 31, 2014 and total risk based capital of 14.52 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for “well capitalized” classification. The Company’s equity capitalization is comprised entirely of common stock. BancorpSouth’s ratio of shareholders’ equity to assets was 12.05 percent at December 31, 2014, compared with 11.61 percent at December 31, 2013 and 12.32 percent at September 30, 2014. The ratio of tangible shareholders’ equity to tangible assets was 9.92 percent at December 31, 2014, compared with 9.44 percent at December 31, 2013 and 10.14 percent at September 30, 2014.

Transaction Closings and Announcements

On January 8, 2014, the Company announced the signing of a definitive merger agreement with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as “OIB”), headquartered in Monroe, Louisiana, pursuant to which Ouachita Bancshares Corp. will be merged with and into the Company. OIB operates 12 full-service banking offices along the I-20 corridor and has loan production offices in Madison, Mississippi and Natchitoches, Louisiana. As of December 31, 2014, OIB, on a consolidated basis, reported total assets of $636.6 million, total loans of $460.6 million and total deposits of $527.8 million. Under the terms of the definitive agreement, the Company will issue approximately 3,675,000 shares of the Company’s common stock plus $22.875 million in cash for all outstanding shares of Ouachita Bancshares Corp.’s capital stock, subject to certain conditions and potential adjustments. The terms of the amended agreement provide for a minimum total deal value of $107.5 million but also allow Ouachita Bancshares Corp. to terminate the agreement if the average closing price of the Company’s common stock declines below a certain threshold prior to closing. The merger has been unanimously approved by the Board of Directors of each company and was approved by OIB shareholders on April 8, 2014. On July 21, 2014, the Company announced the merger agreement was extended to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

On January 21, 2014, the Company announced the signing of a definitive merger agreement with Central Community Corporation, headquartered in Temple, Texas, pursuant to which Central Community Corporation will be merged with and into the Company. Central Community Corporation is the parent company of First State Bank Central Texas (“First State Bank”), which is headquartered in Austin, Texas. First State Bank operates 31 full-service banking offices in central Texas. As of December 31, 2014, Central Community Corporation, on a consolidated basis, reported total assets of $1.4 billion, total loans of $595.4 million and total deposits of $1.1 billion. Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company’s common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation’s capital stock, subject to certain conditions and potential adjustments. The terms of the amended agreement provide for a minimum total deal

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 6

January 21, 2015

 

value of $191.0 million but also allow Central Community Corporation to terminate the agreement if the average closing price of the Company’s common stock declines below a certain threshold prior to closing. The merger has been unanimously approved by the Board of Directors of each company and was approved by Central Community Corporation shareholders on April 24, 2014. On July 21, 2014, the Company announced the merger agreement was extended to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

For additional information regarding the status of the merger with Ouachita Bancshares Corp. and the status of the merger with Central Community Corporation, please refer to the Current Report on Form 8-K that was previously filed with the Securities and Exchange Commission (the “SEC”) on July 24, 2014, Part II, Item 5 of the Quarterly Report on Form 10-Q that was previously filed with the SEC on August 6, 2014 and the Current Report on Form 8-K that was previously filed with the SEC on September 4, 2014.

On April 9, 2014, BancorpSouth Insurance Services, Inc. acquired assets of Lafayette, Louisiana based Knox Insurance Group, LLC. Knox was formed in 1972 and currently produces annual revenues of approximately $3 million. Knox will continue to operate under current leadership in Lafayette.

Summary

Rollins concluded, “The financial results for 2014 reflect a great year of progress for our Company. We were able to grow loans by over $750 million, or 8 percent, during the year and improve our net interest margin meaningfully at the same time. Our insurance team produced considerable organic growth and our mortgage lenders continue to grow purchase money volume. We also made tremendous progress in dealing with remaining credit issues as NPAs declined by approximately 45 percent over the course of the year. All of these accomplishments were made while reducing total noninterest expense year-over-year. As we enter 2015, our Company objectives remain simple. We have to continue to sustain the growth momentum that’s been built, continue to challenge our cost structure, and continue to ensure that we have the appropriate processes and procedures in place to comply with all regulatory requirements.”

Conference Call

BancorpSouth will conduct a conference call to discuss its fourth quarter 2014 results on January 22, 2015, 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.

About BancorpSouth, Inc.

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.3 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc.,

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 7

January 21, 2015

 

operates approximately 300 commercial banking, mortgage, and insurance 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 upon historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “foresee,” “hope,” “intend,” “may,” “might,” “plan,” “will,” or “would” or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the terms, timing and closings of the proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation, the Company’s ability to satisfy the requirements of the consent order issued by the FDIC and the Mississippi Department of Banking and Consumer Finance (“Mississippi Banking Department”), the Company’s undertaking and performance of the necessary actions to remediate and fully resolve those concerns regarding the Company’s procedures, systems and processes related to certain of its compliance programs, including its Bank Secrecy Act and anti-money-laundering programs, that have been identified by its federal bank regulators, the findings and results of the joint investigation by the Consumer Financial Protection Bureau (the “CFPB”) and the United States Department of Justice (“DOJ”) of the Company’s fair lending practices, the acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company’s products and services if the proposed mergers close, the outcome of any instituted, pending or threatened material litigation, amortization expense for intangible assets, goodwill impairments, loan impairment, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue, fair value determinations, the amount of the Company’s non-performing loans and leases, additions to OREO, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, continued weakness in the economic environment, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company’s reserve for losses from representation and warranty obligations, the Company’s foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, calculation of economic value of equity, impaired loan charge-offs, troubled debt restructurings, diversification of the Company’s revenue stream, liquidity needs and strategies, sources of funding, net interest margin, declaration and payment of dividends, cost saving initiatives, improvement in the Company’s efficiencies, operating expense trends, future acquisitions and consideration to be used therefor, the impact of litigation regarding debit card fees and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters.

The Company cautions readers not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors. These factors may include, but are not limited to, the ability of the Company to resolve to the satisfaction of its federal bank regulators those identified concerns regarding the Company’s procedures, systems and processes related to certain of its compliance programs, including its Bank Secrecy Act and anti-money laundering programs, the Company’s ability to comply with the consent order issued by the FDIC and the Mississippi Banking Department, the findings and results of the CFPB and the DOJ in their review of the Company’s fair lending practices, the ability of the Company, Ouachita Bancshares Corp. and Central Community Corporation to obtain regulatory approval of and close the proposed mergers, the potential impact upon the Company of the delay in the closings of these proposed mergers, the impact of any ongoing, pending or threatened litigation, administrative and investigatory matters involving the Company, conditions in the financial markets and economic conditions generally, the adequacy of the Company’s provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company’s OREO, limitations on the Company’s ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Act, and supervision of the Company’s operations, the short-term and long-term impact of changes to banking capital standards on the Company’s regulatory capital and liquidity, the impact of regulations on service charges on the Company’s core deposit accounts, the susceptibility of the Company’s business to local economic and environmental conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company’s ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of the loss of any key Company personnel, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the 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 assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies and other factors detailed from time to time in the Company’s press and news releases, reports and other filings with the SEC. Forward-looking statements speak only as of the date that they were made, and, except as required by law, the Company does not undertake any obligation to update or revise forward-looking statements to reflect events or circumstances that occur after the date of this news release.

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 8

January 21, 2015

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

 

 

 

		Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
		12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Earnings Summary:
Interest revenue		$	114,237			$	113,922			$	111,499			$	110,599			$	112,510
Interest expense			7,792				8,309				8,418				9,076				10,093
Net interest revenue			106,445				105,613				103,081				101,523				102,417
Provision for credit losses			—				—				—				—				—
Net interest revenue, after provision for credit losses			106,445				105,613				103,081				101,523				102,417
Noninterest revenue			63,513				69,278				69,838				66,517				65,125
Noninterest expense			130,046				133,699				127,954				126,707				127,830
Income before income taxes			39,912				41,192				44,965				41,333				39,712
Income tax expense			11,252				12,414				14,097				12,889				12,014
Net income		$	28,660			$	28,778			$	30,868			$	28,444			$	27,698
Balance Sheet - Period End Balances
Total assets		$	13,326,369			$	13,071,557			$	12,985,887			$	13,143,555			$	13,029,733
Total earning assets			12,163,897				11,929,416				11,794,445				11,948,897				11,814,060
Total securities			2,156,927				2,211,462				2,332,192				2,426,758				2,466,989
Loans and leases, net of unearned income			9,712,936				9,510,542				9,311,661				9,068,376				8,958,015
Allowance for credit losses			142,443				143,950				147,132				149,704				153,236
Total deposits			10,972,339				10,701,537				10,670,414				10,811,790				10,773,836
Long-term debt			78,148				81,742				83,835				85,835				81,714
Total shareholders’ equity			1,606,059				1,610,543				1,588,850				1,554,676				1,513,130
Balance Sheet - Average Balances
Total assets		$	13,131,130			$	12,987,103			$	12,933,879			$	13,087,128			$	12,955,127
Total earning assets			12,038,265				11,892,493				11,825,994				11,958,836				11,869,072
Total securities			2,180,000				2,272,114				2,394,045				2,452,178				2,511,888
Loans and leases, net of unearned income			9,579,059				9,393,709				9,232,743				9,022,155				8,830,917
Total deposits			10,802,194				10,662,841				10,650,077				10,825,308				10,739,352
Long-term debt			79,387				81,742				83,967				87,767				81,714
Total shareholders’ equity			1,613,239				1,600,721				1,574,588				1,537,897				1,501,928
Nonperforming Assets:
Non-accrual loans and leases		$	58,052			$	54,612			$	64,533			$	77,531			$	92,173
Loans and leases 90+ days past due, still accruing			2,763				1,925				2,406				1,949				1,226
Restructured loans and leases, still accruing			10,920				12,398				6,712				13,776				27,007
Non-performing loans (NPLs)			71,735				68,935				73,651				93,256				120,406
Other real estate owned			33,984				42,691				55,253				63,595				69,338
Non-performing assets (NPAs)		$	105,719			$	111,626			$	128,904			$	156,851			$	189,744
Financial Ratios and Other Data:
Return on average assets			0.87	%			0.88	%			0.96	%			0.88	%			0.85	%
Return on average shareholders’ equity			7.05	%			7.13	%			7.86	%			7.50	%			7.32	%
Return on tangible equity			8.81	%			8.83	%			9.74	%			9.28	%			9.16	%
Pre-tax pre-provision return on average assets			1.21	%			1.26	%			1.39	%			1.28	%			1.22	%
Non-interest income to average assets			1.92	%			2.12	%			2.17	%			2.06	%			1.99	%
Non-interest expense to average assets			3.93	%			4.08	%			3.97	%			3.93	%			3.91	%
Net interest margin-fully taxable equivalent			3.60	%			3.62	%			3.59	%			3.54	%			3.52	%
Net interest rate spread			3.49	%			3.50	%			3.48	%			3.43	%			3.39	%
Efficiency ratio (tax equivalent)			75.25	%			75.19	%			72.76	%			74.16	%			75.00	%
Loan/deposit ratio			88.52	%			88.87	%			87.27	%			83.87	%			83.15	%
Price to earnings mult (avg)			18.45				16.64				21.00				23.33				25.68
Market value to book value			134.91	%			120.13	%			148.53	%			154.13	%			160.04	%
Market value to book value (avg)			130.16	%			129.54	%			143.72	%			150.43	%			143.60	%
Market value to tangible book value			167.95	%			149.58	%			185.73	%			192.80	%			201.69	%
Market value to tangible book value (avg)			162.04	%			161.30	%			179.75	%			188.17	%			180.98	%
Headcount FTE			3,948				3,938				3,981				3,981				4,005

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 9

January 21, 2015

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

 

 

 

		Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended				Quarter Ended
		12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Credit Quality Ratios:
Net charge-offs to average loans and leases (annualized)			0.06	%			0.13	%			0.11	%			0.16	%			0.03	%
Provision for credit losses to average loans and leases (annualized)			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
Allowance for credit losses to net loans and leases			1.47	%			1.51	%			1.58	%			1.65	%			1.71	%
Allowance for credit losses to non-performing loans and leases			198.57	%			208.82	%			199.77	%			160.53	%			127.27	%
Allowance for credit losses to non-performing assets			134.74	%			128.96	%			114.14	%			95.44	%			80.76	%
Non-performing loans and leases to net loans and leases			0.74	%			0.72	%			0.79	%			1.03	%			1.34	%
Non-performing assets to net loans and leases			1.09	%			1.17	%			1.38	%			1.73	%			2.12	%
Equity Ratios:
Total shareholders’ equity to total assets			12.05	%			12.32	%			12.24	%			11.83	%			11.61	%
Tangible shareholders’ equity to tangible assets			9.92	%			10.14	%			10.03	%			9.69	%			9.44	%
Capital Adequacy:
Tier 1 capital			13.26	%			13.18	%			13.09	%			13.18	%			12.99	%
Total capital			14.52	%			14.43	%			14.35	%			14.44	%			14.25	%
Tier 1 leverage capital			10.55	%			10.47	%			10.33	%			10.04	%			9.93	%
Estimated for current quarter
Common Share Data:
Basic earnings per share		$	0.30			$	0.30			$	0.32			$	0.30			$	0.29
Diluted earnings per share			0.30				0.30				0.32				0.30				0.29
Cash dividends per share			0.08				0.08				0.05				0.05				0.05
Book value per share			16.69				16.77				16.54				16.19				15.89
Tangible book value per share			13.40				13.46				13.23				12.95				12.60
Market value per share (last)			22.51				20.14				24.57				24.96				25.42
Market value per share (high)			23.28				25.43				25.55				26.24				25.54
Market value per share (low)			19.22				20.11				22.16				22.46				19.64
Market value per share (avg)			21.72				21.72				23.78				24.36				22.81
Dividend payout ratio			25.17	%			25.03	%			15.56	%			16.80	%			17.19	%
Total shares outstanding			96,254,903				96,065,021				96,046,057				96,004,679				95,231,691
Average shares outstanding - basic			96,173,000				96,052,260				96,034,475				95,629,890				95,217,203
Average shares outstanding - diluted			96,506,827				96,373,950				96,373,121				95,952,611				95,644,383
Yield/Rate:
(Taxable equivalent basis)
Loans, loans held for sale, and leases net of unearned income			4.30	%			4.36	%			4.38	%			4.48	%			4.52	%
Available-for-sale securities:
Taxable			1.43	%			1.42	%			1.45	%			1.50	%			1.51	%
Tax-exempt			5.30	%			5.37	%			5.44	%			5.58	%			5.52	%
Short-term investments			0.24	%			0.22	%			0.24	%			0.25	%			0.25	%
Total interest earning assets and revenue			3.85	%			3.89	%			3.88	%			3.85	%			3.86	%
Deposits:			0.25	%			0.28	%			0.28	%			0.31	%			0.34	%
Demand - interest bearing			0.18	%			0.17	%			0.17	%			0.17	%			0.18	%
Savings			0.12	%			0.12	%			0.12	%			0.13	%			0.13	%
Other time			0.87	%			0.96	%			0.97	%			1.06	%			1.13	%
Short-term borrowings			0.11	%			0.10	%			0.09	%			0.07	%			0.07	%
Total int bearing dep & s/t borrowings			0.33	%			0.36	%			0.37	%			0.39	%			0.43	%
Junior subordinated debt			2.82	%			2.81	%			2.81	%			2.86	%			2.96	%
Long-term debt			2.86	%			2.85	%			2.84	%			2.91	%			2.94	%
Total interest bearing liabilities and expense			0.36	%			0.39	%			0.40	%			0.42	%			0.46	%
Interest bearing liabilities to interest earning assets			70.57	%			71.07	%			71.98	%			73.51	%			72.91	%
Net interest tax equivalent adjustment		$	2,736			$	2,810			$	2,860			$	2,823			$	2,893

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 10

January 21, 2015

 

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

 

		Dec-14				Sep-14				Jun-14				Mar-14				Dec-13
		(Dollars in thousands)
Assets
Cash and due from banks		$	204,231			$	169,226			$	201,196			$	199,214			$	208,961
Interest bearing deposits with other banks			153,019				70,408				44,949				390,896				319,462
Available-for-sale securities, at fair value			2,156,927				2,211,462				2,332,192				2,426,758				2,466,989
Loans and leases			9,749,540				9,546,250				9,347,429				9,103,850				8,993,888
Less: Unearned income			36,604				35,708				35,768				35,474				35,873
Allowance for credit losses			142,443				143,950				147,132				149,704				153,236
Net loans and leases			9,570,493				9,366,592				9,164,529				8,918,672				8,804,779
Loans held for sale			141,015				137,005				105,643				62,867				69,593
Premises and equipment, net			304,943				307,497				310,515				314,367				315,260
Accrued interest receivable			41,985				42,311				40,697				42,666				42,150
Goodwill			291,498				291,498				291,498				286,800				286,800
Other identifiable intangibles			24,508				25,619				26,745				25,021				26,079
Bank owned life insurance			247,076				243,827				241,962				240,077				239,434
Other real estate owned			33,984				42,691				55,253				63,595				69,338
Other assets			156,690				163,421				170,708				172,622				180,888
Total Assets		$	13,326,369			$	13,071,557			$	12,985,887			$	13,143,555			$	13,029,733
Liabilities
Deposits:
Demand: Noninterest bearing		$	2,778,686			$	2,811,156			$	2,718,242			$	2,725,042			$	2,644,592
Interest bearing			4,868,054				4,498,275				4,511,760				4,583,481				4,582,450
Savings			1,331,963				1,311,874				1,299,203				1,297,344				1,234,130
Other time			1,993,636				2,080,232				2,141,209				2,205,923				2,312,664
Total deposits			10,972,339				10,701,537				10,670,414				10,811,790				10,773,836
Federal funds purchased and securities sold under agreement to repurchase			388,166				431,428				394,446				456,303				421,028
Short-term Federal Home Loan Bank borrowings and other short-term borrowing			3,500				2,000				2,000				—				—
Accrued interest payable			3,400				3,894				3,926				4,050				4,836
Junior subordinated debt securities			23,198				23,198				23,198				23,198				31,446
Long-term debt			78,148				81,742				83,835				85,835				81,714
Other liabilities			251,559				217,215				219,218				207,703				203,743
Total Liabilities			11,720,310				11,461,014				11,397,037				11,588,879				11,516,603
Shareholders’ Equity
Common stock			240,637				240,165				240,118				240,012				238,079
Capital surplus			324,271				322,488				321,952				320,969				312,900
Accumulated other comprehensive loss			(43,686	)			(15,513	)			(15,040	)			(22,060	)			(29,959	)
Retained earnings			1,084,837				1,063,403				1,041,820				1,015,755				992,110
Total Shareholders’ Equity			1,606,059				1,610,543				1,588,850				1,554,676				1,513,130
Total Liabilities & Shareholders’ Equity		$	13,326,369			$	13,071,557			$	12,985,887			$	13,143,555			$	13,029,733

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 11

January 21, 2015

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

 

		Dec-14				Sep-14				Jun-14				Mar-14				Dec-13
		(Dollars in thousands)
Assets
Cash and due from banks		$	166,941			$	155,876			$	157,813			$	168,056			$	163,948
Interest bearing deposits with other banks			165,713				120,707				145,530				449,207				471,695
Available-for-sale securities, at fair value			2,180,000				2,272,114				2,394,045				2,452,178				2,511,888
Loans and leases			9,615,125				9,430,043				9,269,469				9,058,081				8,864,983
Less: Unearned income			36,066				36,334				36,726				35,926				34,066
Allowance for credit losses			143,842				146,592				149,676				153,615				153,443
Net loans and leases			9,435,217				9,247,117				9,083,067				8,868,540				8,677,474
Loans held for sale			113,493				105,964				53,676				35,297				54,572
Premises and equipment, net			306,630				309,373				313,012				315,804				315,174
Accrued interest receivable			39,034				38,758				38,291				39,336				39,665
Goodwill			291,498				291,498				293,082				286,800				279,091
Other identifiable intangibles			24,910				26,031				25,271				25,420				18,658
Bank owned life insurance			245,584				242,718				240,736				239,969				237,657
Other real estate owned			39,209				49,123				60,822				69,086				77,211
Other assets			122,901				127,824				128,534				137,435				108,094
Total Assets		$	13,131,130			$	12,987,103			$	12,933,879			$	13,087,128			$	12,955,127
Liabilities
Deposits:
Demand: Noninterest bearing		$	2,837,919			$	2,766,626			$	2,683,939			$	2,647,376			$	2,667,667
Interest bearing			4,617,998				4,480,008				4,492,495				4,657,785				4,484,269
Savings			1,321,000				1,308,184				1,298,829				1,260,838				1,224,588
Other time			2,025,277				2,108,023				2,174,814				2,259,309				2,362,828
Total deposits			10,802,194				10,662,841				10,650,077				10,825,308				10,739,352
Federal funds purchased and securities sold under agreement to repurchase			426,842				444,017				435,505				458,436				469,245
Short-term Federal Home Loan Bank borrowings and other short-term borrowing			2,261				6,489				3,621				—				—
Accrued interest payable			3,630				3,940				3,926				4,400				5,051
Junior subordinated debt securities			23,198				23,198				23,198				23,748				31,446
Long-term debt			79,387				81,742				83,967				87,767				81,714
Other liabilities			180,379				164,155				158,997				149,572				126,391
Total Liabilities			11,517,891				11,386,382				11,359,291				11,549,231				11,453,199
Shareholders’ Equity
Common stock			240,436				240,123				240,071				238,853				238,038
Capital surplus			323,372				322,219				321,628				314,117				312,835
Accumulated other comprehensive loss			(22,747	)			(14,827	)			(16,663	)			(23,644	)			(32,267	)
Retained earnings			1,072,178				1,053,206				1,029,552				1,008,571				983,322
Total Shareholders’ Equity			1,613,239				1,600,721				1,574,588				1,537,897				1,501,928
Total Liabilities & Shareholders’ Equity		$	13,131,130			$	12,987,103			$	12,933,879			$	13,087,128			$	12,955,127

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 12

January 21, 2015

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

 

		Quarter Ended																				Year Ended
		Dec-14				Sep-14				Jun-14				Mar-14				Dec-13				Dec-14				Dec-13
INTEREST REVENUE:
Loans and leases		$	103,172			$	102,681			$	99,962			$	98,744			$	99,989			$	404,559			$	396,441
Deposits with other banks			101				68				87				276				299				532				1,694
Available-for-sale securities:
Taxable			6,429				6,646				7,133				7,547				7,963				27,755				33,286
Tax-exempt			3,471				3,607				3,669				3,715				3,810				14,462				15,547
Loans held for sale			1,064				920				648				317				449				2,949				2,539
Total interest revenue			114,237				113,922				111,499				110,599				112,510				450,257				449,507
INTEREST EXPENSE:
Interest bearing demand			2,070				1,956				1,905				1,920				2,036				7,851				9,645
Savings			411				410				402				391				387				1,614				1,705
Other time			4,453				5,083				5,249				5,890				6,746				20,675				29,729
Federal funds purchased and securities sold under agreement to repurchase			89				84				80				78				84				331				297
Long-term debt			603				612				619				629				605				2,463				1,803
Junior subordinated debt			165				164				162				168				235				659				7,376
Other			1				—				1				—				—				2				3
Total interest expense			7,792				8,309				8,418				9,076				10,093				33,595				50,558
Net interest revenue			106,445				105,613				103,081				101,523				102,417				416,662				398,949
Provision for credit losses			—				—				—				—				—				—				7,500
Net interest revenue, after provision for credit losses			106,445				105,613				103,081				101,523				102,417				416,662				391,449
NONINTEREST REVENUE:
Mortgage lending			3,250				6,938				9,089				3,394				9,605				22,671				44,977
Credit card, debit card and merchant fees			9,921				8,972				8,567				7,843				8,324				35,303				33,005
Deposit service charges			12,538				13,111				12,437				12,536				13,570				50,622				52,905
Security gains (losses), net			18				18				5				(4	)			29				37				46
Insurance commissions			25,376				29,246				28,621				31,599				21,397				114,842				97,700
Wealth Management			5,826				5,961				5,828				5,916				5,320				23,531				22,967
Other			6,584				5,032				5,291				5,233				6,880				22,140				23,466
Total noninterest revenue			63,513				69,278				69,838				66,517				65,125				269,146				275,066
NONINTEREST EXPENSE:
Salaries and employee benefits			76,751				77,453				74,741				78,883				75,466				307,828				306,696
Occupancy, net of rental income			10,500				10,313				10,245				10,287				9,935				41,345				41,109
Equipment			3,996				4,205				4,169				4,499				4,298				16,869				18,386
Deposit insurance assessments			2,430				2,125				2,035				1,600				2,687				8,190				11,755
Voluntary early retirement expense			—				—				—				—				—				—				10,850
Write-off and amortization of bond issue cost			12				12				12				12				12				48				2,995
Other			36,357				39,591				36,752				31,426				35,432				144,126				143,058
Total noninterest expenses			130,046				133,699				127,954				126,707				127,830				518,406				534,849
Income before income taxes			39,912				41,192				44,965				41,333				39,712				167,402				131,666
Income tax expense			11,252				12,414				14,097				12,889				12,014				50,652				37,551
Net income		$	28,660			$	28,778			$	30,868			$	28,444			$	27,698			$	116,750			$	94,115
Net income per share: Basic		$	0.30			$	0.30			$	0.32			$	0.30			$	0.29			$	1.22			$	0.99
Diluted		$	0.30			$	0.30			$	0.32			$	0.30			$	0.29			$	1.21			$	0.99

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 13

January 21, 2015

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Dec-14				Sep-14				Jun-14				Mar-14				Dec-13
LOAN AND LEASE PORTFOLIO:
Commercial and industrial		$	1,746,486			$	1,714,012			$	1,699,803			$	1,581,251			$	1,529,249
Real estate
Consumer mortgages			2,257,726				2,191,265				2,071,503				2,047,001				1,976,073
Home equity			531,374				518,263				506,988				498,283				494,339
Agricultural			239,616				242,023				238,003				229,602				234,576
Commercial and industrial-owner occupied			1,522,536				1,508,679				1,505,679				1,488,380				1,473,320
Construction, acquisition and development			853,623				819,636				772,162				748,027				741,458
Commercial real estate			1,961,977				1,916,577				1,901,759				1,847,983				1,846,039
Credit cards			113,426				109,464				109,186				105,988				111,328
All other			486,172				490,623				506,578				521,861				551,633
Total loans		$	9,712,936			$	9,510,542			$	9,311,661			$	9,068,376			$	8,958,015
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period		$	143,950			$	147,132			$	149,704			$	153,236			$	153,974
Loans and leases charged off:
Commercial and industrial			(1,179	)			(306	)			(860	)			(201	)			(837	)
Real estate
Consumer mortgages			(900	)			(1,510	)			(1,682	)			(1,945	)			(1,435	)
Home equity			(93	)			(510	)			(438	)			(318	)			(287	)
Agricultural			(4	)			(47	)			(18	)			(696	)			(238	)
Commercial and industrial-owner occupied			(220	)			(1,229	)			(936	)			(1,206	)			(1,041	)
Construction, acquisition and development			(566	)			(1,458	)			(41	)			(1,666	)			(1,784	)
Commercial real estate			(463	)			(70	)			(361	)			(901	)			(1,039	)
Credit cards			(580	)			(612	)			(608	)			(559	)			(559	)
All other			(847	)			(743	)			(671	)			(583	)			(1,108	)
Total loans charged off			(4,852	)			(6,485	)			(5,615	)			(8,075	)			(8,328	)
Recoveries:
Commercial and industrial			298				565				359				1,076				1,361
Real estate
Consumer mortgages			821				952				956				538				1,735
Home equity			102				157				182				184				97
Agricultural			16				45				26				9				34
Commercial and industrial-owner occupied			216				460				78				358				734
Construction, acquisition and development			897				392				808				1,637				2,483
Commercial real estate			623				286				226				323				784
Credit cards			160				116				135				131				133
All other			212				330				273				287				229
Total recoveries			3,345				3,303				3,043				4,543				7,590
Net charge-offs			(1,507	)			(3,182	)			(2,572	)			(3,532	)			(738	)
Provision charged to operating expense			—				—				—				—				—
Balance, end of period		$	142,443			$	143,950			$	147,132			$	149,704			$	153,236
Average loans for period		$	9,579,059			$	9,393,709			$	9,232,743			$	9,022,155			$	8,830,917
Ratio:
Net charge-offs to average loans (annualized)			0.06	%			0.13	%			0.11	%			0.16	%			0.03	%

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 14

January 21, 2015

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Dec-14				Sep-14				Jun-14				Mar-14				Dec-13
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial		$	3,934			$	2,786			$	2,917			$	3,023			$	3,079
Real estate
Consumer mortgages			23,668				23,408				24,355				24,353				25,645
Home equity			2,253				2,073				2,116				2,740				3,695
Agricultural			291				638				595				651				1,260
Commercial and industrial-owner occupied			11,190				7,495				11,094				14,122				18,568
Construction, acquisition and development			4,162				6,070				9,202				9,968				17,567
Commercial real estate			11,915				11,102				13,406				21,496				20,972
Credit cards			133				168				132				168				119
All other			506				872				716				1,010				1,268
Total nonaccrual loans and leases		$	58,052			$	54,612			$	64,533			$	77,531			$	92,173
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and industrial		$	41			$	60			$	302			$	287			$	27
Real estate
Consumer mortgages			1,828				1,590				1,607				1,307				888
Home equity			—				20				116				12				—
Agricultural			—				—				100				—				—
Commercial and industrial-owner occupied			39				—				—				—				—
Construction, acquisition and development			387				—				—				—				—
Commercial real estate			137				—				—				—				311
Credit cards			327				255				281				297				—
All other			4				—				—				46				—
Total loans and leases 90+ days past due, still accruing			2,763				1,925				2,406				1,949				1,226
Restructured Loans and Leases, Still Accruing			10,920				12,398				6,712				13,776				27,007
Total non-performing loans and leases			71,735				68,935				73,651				93,256				120,406
OTHER REAL ESTATE OWNED:			33,984				42,691				55,253				63,595				69,338
Total Non-performing Assets		$	105,719			$	111,626			$	128,904			$	156,851			$	189,744
Additions to Nonaccrual Loans and Leases During the Quarter		$	21,952			$	16,707			$	13,748			$	22,479			$	18,556
Loans and Leases 30-89 Days Past Due, Still Accruing:
Commercial and industrial		$	2,319			$	3,753			$	3,605			$	2,616			$	2,817
Real estate
Consumer mortgages			11,412				13,013				11,448				12,236				14,150
Home equity			2,047				1,315				960				1,587				1,828
Agricultural			366				190				1,122				302				495
Commercial and industrial-owner occupied			912				2,364				6,340				3,248				4,081
Construction, acquisition and development			4,811				1,036				1,616				2,848				1,993
Commercial real estate			1,510				926				1,658				3,953				5,574
Credit cards			739				602				556				592				655
All other			1,698				1,196				1,490				963				2,189
Total Loans and Leases 30-89 days past due, still accruing		$	25,814			$	24,395			$	28,795			$	28,345			$	33,782
Credit Quality Ratios:
Provision for credit losses to average loans and leases (annualized)			0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
Allowance for credit losses to net loans and leases			1.47	%			1.51	%			1.58	%			1.65	%			1.71	%
Allowance for credit losses to non-performing loans and leases			198.57	%			208.82	%			199.77	%			160.53	%			127.27	%
Allowance for credit losses to non-performing assets			134.74	%			128.96	%			114.14	%			95.44	%			80.76	%
Non-performing loans and leases to net loans and leases			0.74	%			0.72	%			0.79	%			1.03	%			1.34	%
Non-performing assets to net loans and leases			1.09	%			1.17	%			1.38	%			1.73	%			2.12	%

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 15

January 21, 2015

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Dec-14				Sep-14				Jun-14				Mar-14				Dec-13
REAL ESTATE CONSTRUCTION, ACQUISITION AND DEVELOPMENT (“CAD”) PORTFOLIO:
Outstanding Balance
Multi-family construction		$	32,254			$	24,076			$	15,874			$	11,339			$	7,702
One-to-four family construction			227,431				220,066				226,252				221,790				224,286
Recreation and all other loans			38,913				33,015				35,364				36,897				36,868
Commercial construction			254,998				245,734				192,605				177,264				150,847
Commercial acquisition and development			123,648				121,439				122,380				122,051				128,157
Residential acquisition and development			176,379				175,306				179,687				178,686				193,598
Total outstanding balance		$	853,623			$	819,636			$	772,162			$	748,027			$	741,458
Nonaccrual CAD Loans
Multi-family construction		$	—			$	—			$	—			$	—			$	—
One-to-four family construction			965				1,239				2,603				2,824				2,937
Recreation and all other loans			805				1,060				981				919				728
Commercial construction			—				—				—				—				865
Commercial acquisition and development			979				2,033				1,835				2,224				6,890
Residential acquisition and development			1,413				3,086				3,783				4,001				6,147
Total nonaccrual CAD loans		$	4,162			$	7,418			$	9,202			$	9,968			$	17,567
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			387				—				—				—				—
Residential acquisition and development			—				—				—				—				—
Total CAD loans 90+ days past due, still accruing		$	387			$	—			$	—			$	—			$	—
Restructured CAD Loans, Still Accruing
Multi-family construction		$	—			$	—			$	—			$	—			$	—
One-to-four family construction			27				—				—				—				1,274
Recreation and all other loans			40				10				11				13				13
Commercial construction			—				—				—				—				346
Commercial acquisition and development			—				391				395				402				1,990
Residential acquisition and development			646				947				700				1,192				3,111
Total restructured CAD loans, still accruing		$	713			$	1,348			$	1,106			$	1,607			$	6,734
Total Non-performing CAD loans		$	5,262			$	8,766			$	10,308			$	11,575			$	24,301
CAD NPL as a % of Outstanding CAD Balance
Multi-family construction			—				—				—				—				—
One-to-four family construction			0.4	%			0.6	%			1.2	%			1.3	%			1.9	%
Recreation and all other loans			2.2	%			3.2	%			2.8	%			2.5	%			2.0	%
Commercial construction			0.0	%			0.0	%			0.0	%			0.0	%			0.8	%
Commercial acquisition and development			1.1	%			2.0	%			1.8	%			2.2	%			6.9	%
Residential acquisition and development			1.2	%			2.3	%			2.5	%			2.9	%			4.8	%
Total CAD NPL as a % of outstanding CAD balance			0.6	%			1.1	%			1.3	%			1.5	%			3.3	%

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 16

January 21, 2015

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

		December 31, 2014
		Pass				Special Mention				Substandard				Doubtful				Loss				Impaired				Total
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial		$	1,709,475			$	978			$	33,879			$	—			$	—			$	2,154			$	1,746,486
Real estate
Consumer mortgages			2,167,965				—				84,975				—				—				4,786				2,257,726
Home equity			521,011				—				9,744				—				—				619				531,374
Agricultural			227,688				—				11,928				—				—				—				239,616
Commercial and industrial-owner occupied			1,450,158				—				64,420				491				—				7,467				1,522,536
Construction, acquisition and development			811,227				—				39,675				334				—				2,387				853,623
Commercial real estate			1,893,514				—				57,761				184				—				10,518				1,961,977
Credit cards			113,426				—				—				—				—				—				113,426
All other			471,662				—				14,340				—				—				170				486,172
Total loans		$	9,366,126			$	978			$	316,722			$	1,009			$	—			$	28,101			$	9,712,936
		September 30, 2014
		Pass				Special Mention				Substandard				Doubtful				Loss				Impaired				Total
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial		$	1,685,887			$	994			$	25,536			$	341			$	—			$	1,254			$	1,714,012
Real estate
Consumer mortgages			2,098,275				—				88,742				—				—				4,248				2,191,265
Home equity			507,884				—				9,752				—				—				627				518,263
Agricultural			227,546				500				13,711				—				—				266				242,023
Commercial and industrial-owner occupied			1,443,345				3,685				57,572				142				—				3,935				1,508,679
Construction, acquisition and development			776,197				255				39,310				342				—				3,532				819,636
Commercial real estate			1,850,212				—				57,393				189				—				8,783				1,916,577
Credit cards			109,464				—				—				—				—				—				109,464
All other			471,065				—				19,382				—				—				176				490,623
Total loans		$	9,169,875			$	5,434			$	311,398			$	1,014			$	—			$	22,821			$	9,510,542

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 17

January 21, 2015

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)

 

		December 31, 2014
		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		$	75,919			$	172,894			$	303,524			$	29,734			$	24,457			$	89,683			$	321,143			$	729,132			$	1,746,486
Real estate
Consumer mortgages			183,605				283,462				710,307				69,501				115,178				175,401				556,457				163,815				2,257,726
Home equity			73,380				39,546				174,587				21,661				68,777				88,505				62,872				2,046				531,374
Agricultural			6,814				73,413				56,016				2,747				12,678				11,115				73,076				3,757				239,616
Commercial and industrial-owner occupied			172,813				172,026				454,432				61,393				90,734				87,524				337,457				146,157				1,522,536
Construction, acquisition and development			129,955				83,645				227,979				21,800				73,944				98,067				180,676				37,557				853,623
Commercial real estate			285,105				327,703				294,254				200,352				98,403				126,197				436,519				193,444				1,961,977
Credit cards			—				—				—				—				—				—				—				113,426				113,426
All other			28,728				38,680				131,704				2,726				35,142				33,101				67,260				148,831				486,172
Total loans		$	956,319			$	1,191,369			$	2,352,803			$	409,914			$	519,313			$	709,593			$	2,035,460			$	1,538,165			$	9,712,936
CAD PORTFOLIO:
Multi-family construction		$	19,600			$	3,488			$	5			$	—			$	—			$	6,190			$	2,971			$	—			$	32,254
One-to-four family construction			37,174				17,057				56,157				2,619				12,219				57,505				44,143				557				227,431
Recreation and all other loans			1,180				12,322				11,163				570				3,737				1,652				8,289				—				38,913
Commercial construction			37,806				21,853				75,419				7,759				24,525				9,238				52,409				25,989				254,998
Commercial acquisition and development			9,601				15,681				36,917				6,093				13,686				8,467				30,478				2,725				123,648
Residential acquisition and development			24,594				13,244				48,318				4,759				19,777				15,015				42,386				8,286				176,379
Total CAD loans		$	129,955			$	83,645			$	227,979			$	21,800			$	73,944			$	98,067			$	180,676			$	37,557			$	853,623
NON-PERFORMING LOANS AND LEASES:
Commercial and industrial		$	1,250			$	340			$	1,359			$	—			$	147			$	209			$	773			$	333			$	4,411
Real estate
Consumer mortgages			1,361				2,812				6,728				805				2,861				2,078				2,853				8,984				28,482
Home equity			631				21				373				—				445				277				521				2				2,270
Agricultural			100				—				121				—				—				64				14				—				299
Commercial and industrial-owner occupied			1,029				3,608				7,127				603				648				769				352				1,615				15,751
Construction, acquisition and development			686				55				2,070				139				1,374				348				587				3				5,262
Commercial real estate			30				221				1,895				—				3,186				3,165				3,879				847				13,223
Credit cards			—				—				—				—				—				—				—				1,420				1,420
All other			—				22				228				—				—				240				126				1				617
Total loans		$	5,087			$	7,079			$	19,901			$	1,547			$	8,661			$	7,150			$	9,105			$	13,205			$	71,735
NON-PERFORMING LOANS AND LEASES AS A PERCENTAGE OF OUTSTANDING:
Commercial and industrial			1.65	%			0.20	%			0.45	%			0.00	%			0.60	%			0.23	%			0.24	%			0.05	%			0.25	%
Real estate
Consumer mortgages			0.74	%			0.99	%			0.95	%			1.16	%			2.48	%			1.18	%			0.51	%			5.48	%			1.26	%
Home equity			0.86	%			0.05	%			0.21	%			0.00	%			0.65	%			0.31	%			0.83	%			0.10	%			0.43	%
Agricultural			1.47	%			0.00	%			0.22	%			0.00	%			0.00	%			0.58	%			0.02	%			0.00	%			0.12	%
Commercial and industrial-owner occupied			0.60	%			2.10	%			1.57	%			0.98	%			0.71	%			0.88	%			0.10	%			1.10	%			1.03	%
Construction, acquisition and development			0.53	%			0.07	%			0.91	%			0.64	%			1.86	%			0.35	%			0.32	%			0.01	%			0.62	%
Commercial real estate			0.01	%			0.07	%			0.64	%			0.00	%			3.24	%			2.51	%			0.89	%			0.44	%			0.67	%
Credit cards			—				—				—				—				—				—				—				1.25	%			1.25	%
All other			0.00	%			0.06	%			0.17	%			0.00	%			0.00	%			0.73	%			0.19	%			0.00	%			0.13	%
Total loans			0.53	%			0.59	%			0.85	%			0.38	%			1.67	%			1.01	%			0.45	%			0.86	%			0.74	%

 

*Excludes

the Greater Memphis Area.

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 18

January 21, 2015

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

		December 31, 2014
		Alabama																Greater
		and Florida																Memphis								Texas and
		Panhandle				Arkansas*				Mississippi*				Missouri				Area				Tennessee*				Louisiana				Other				Total
OTHER REAL ESTATE OWNED:
Commercial and industrial		$	84			$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	84
Real estate
Consumer mortgages			309				97				1,181				—				—				198				509				—				2,294
Home equity			24				—				188				—				—				—				—				—				212
Agricultural			—				—				25				—				—				—				—				—				25
Commercial and industrial-owner occupied			—				—				1,162				—				223				—				60				—				1,445
Construction, acquisition and development			7,302				84				9,182				—				9,178				1,798				196				—				27,740
Commercial real estate			1,000				256				767				—				—				—				63				—				2,086
All other			—				—				98				—				—				—				—				—				98
Total loans		$	8,719			$	437			$	12,603			$	—			$	9,401			$	1,996			$	828			$	—			$	33,984

		Quarter Ended
		Dec-14				Sep-14				Jun-14				Mar-14				Dec-13
OTHER REAL ESTATE OWNED:
Balance, beginning of period		$	42,691			$	55,253			$	63,595			$	69,338			$	76,853
Additions to foreclosed properties
New foreclosed property			2,257				3,476				4,144				4,855				7,868
Reductions in foreclosed properties
Sales			(8,548	)			(14,429	)			(10,269	)			(8,767	)			(14,272	)
Writedowns			(2,416	)			(1,609	)			(2,217	)			(1,831	)			(1,111	)
Balance, end of period		$	33,984			$	42,691			$	55,253			$	63,595			$	69,338
FORECLOSED PROPERTY EXPENSE
Loss on sale of other real estate owned		$	1,643			$	3,289			$	1,073			$	466			$	949
Writedown of other real estate owned			2,416				1,609				2,217				1,831				1,111
Other foreclosed property expense			534				823				912				258				771
Total foreclosed property expense		$	4,593			$	5,721			$	4,202			$	2,555			$	2,831

 

*	Excludes the Greater Memphis Area.

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 19

January 21, 2015

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Dec-14				Sep-14				Jun-14				Mar-14				Dec-13
NONINTEREST REVENUE:
Mortgage lending		$	3,250			$	6,938			$	9,089			$	3,394			$	9,605
Credit card, debit card and merchant fees			9,921				8,972				8,567				7,843				8,324
Deposit service charges			12,538				13,111				12,437				12,536				13,570
Securities gains, net			18				18				5				(4	)			29
Insurance commissions			25,376				29,246				28,621				31,599				21,397
Trust income			3,791				3,537				3,624				3,568				3,717
Annuity fees			540				461				695				772				566
Brokerage commissions and fees			1,495				1,963				1,509				1,576				1,037
Bank-owned life insurance			3,249				1,865				1,885				1,849				2,466
Other miscellaneous income			3,335				3,167				3,406				3,384				4,414
Total noninterest revenue		$	63,513			$	69,278			$	69,838			$	66,517			$	65,125
NONINTEREST EXPENSE:
Salaries and employee benefits		$	76,751			$	77,453			$	74,741			$	78,883			$	75,466
Occupancy, net of rental income			10,500				10,313				10,245				10,287				9,935
Equipment			3,996				4,205				4,169				4,499				4,298
Deposit insurance assessments			2,430				2,125				2,035				1,600				2,687
Amortization of bond issue cost			12				12				12				12				12
Advertising			1,233				1,192				1,331				632				1,436
Foreclosed property expense			4,593				5,721				4,202				2,555				2,831
Telecommunications			1,960				2,254				2,258				2,248				1,971
Public relations			770				950				857				822				972
Data processing			2,806				2,734				2,863				2,741				2,939
Computer software			2,763				2,488				2,851				2,423				2,197
Amortization of intangibles			1,111				1,126				1,148				1,058				819
Legal			2,322				2,620				3,002				1,878				2,537
Merger expense			4				188				1,009				560				—
Postage and shipping			1,239				1,103				1,116				1,287				1,133
Other miscellaneous expense			17,556				19,215				16,115				15,222				18,597
Total noninterest expense		$	130,046			$	133,699			$	127,954			$	126,707			$	127,830
INSURANCE COMMISSIONS:
Property and casualty commissions		$	19,007			$	22,746			$	21,576			$	19,987			$	15,588
Life and health commissions			5,521				5,128				5,549				5,010				4,525
Risk management income			621				708				617				705				648
Other			227				664				879				5,897				636
Total insurance commissions		$	25,376			$	29,246			$	28,621			$	31,599			$	21,397

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 20

January 21, 2015

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

		Quarter Ended
		Dec-14				Sep-14				Jun-14				Mar-14				Dec-13
MORTGAGE SERVICING RIGHTS:
Fair value, beginning of period		$	53,759			$	52,272			$	53,436			$	54,662			$	51,025
Additions to mortgage servicing rights:
Originations of servicing assets			2,453				2,400				2,565				1,460				1,984
Changes in fair value:
Due to payoffs/paydowns			(1,480	)			(1,559	)			(1,616	)			(1,138	)			(1,240	)
Due to change in valuation inputs or assumptions used in the valuation model			(3,434	)			648				(2,111	)			(1,547	)			2,894
Other changes in fair value			(2	)			(2	)			(2	)			(1	)			(1	)
Fair value, end of period		$	51,296			$	53,759			$	52,272			$	53,436			$	54,662
MORTGAGE LENDING REVENUE:
Origination		$	3,949			$	3,736			$	8,758			$	1,964			$	3,590
Servicing			4,215				4,113				4,058				4,115				4,361
MSR payoffs/paydowns			(1,480	)			(1,559	)			(1,616	)			(1,138	)			(1,240	)
MSR valuation adjustment			(3,434	)			648				(2,111	)			(1,547	)			2,894
Total mortgage lending revenue		$	3,250			$	6,938			$	9,089			$	3,394			$	9,605
Mortgage loans serviced		$	5,686,756			$	5,649,897			$	5,630,192			$	5,568,828			$	5,577,325
MSR/mtg loans serviced			0.90	%			0.95	%			0.93	%			0.96	%			0.98	%
AVAILABLE-FOR-SALE SECURITIES, at fair value
U.S. Government agencies		$	1,215,054			$	1,238,088			$	1,333,368			$	1,419,269			$	1,458,349
Government agency issued residential mortgage-back securities			209,230				218,748				229,414				241,596				250,234
Government agency issued commercial mortgage-back securities			240,568				237,325				237,321				234,059				230,912
Obligations of states and political subdivisions			483,864				509,304				520,897				523,811				519,405
Other			8,211				7,997				11,192				8,023				8,089
Total available-for-sale securities		$	2,156,927			$	2,211,462			$	2,332,192			$	2,426,758			$	2,466,989

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 21

January 21, 2015

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

Management evaluates the Company’s capital position and operating performance by utilizing certain financial measures not calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including tangible shareholders’ equity to tangible assets, return on tangible equity, pre-tax pre-provision return on average assets, tangible book value per share, and operating earnings per share. The Company has included these non-GAAP financial measures in this news release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures (i) provides important supplemental information that contributes to a proper understanding of the Company’s operating performance, (ii) enables a more complete understanding of factors and trends affecting the Company’s business and (iii) allows investors to evaluate the Company’s performance in a manner similar to Management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies’ non-GAAP financial measures having the same or similar names.

Reconciliation of Pre-tax, Pre-provision Earnings and Net Operating Income:

 

		Quarter ended
		12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Net income		$	28,660			$	28,778			$	30,868			$	28,444			$	27,698
Plus: Provision for credit losses			—				—				—				—				—
Income tax expense			11,252				12,414				14,097				12,889				12,014
Pre-tax, pre-provision earnings		$	39,912			$	41,192			$	44,965			$	41,333			$	39,712
Net income		$	28,660			$	28,778			$	30,868			$	28,444			$	27,698
Plus: Merger expense, net of tax			2				117				626				347				—
One time charge for BSA, net of tax			—				1,903				—				—				—
Net operating income		$	28,662			$	30,798			$	31,494			$	28,791			$	27,698

 

- MORE -

---

BXS Announces Fourth Quarter Results

Page 22

January 21, 2015

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands, except per share amounts)

(Unaudited)

Reconciliation of Tangible Assets and Tangible Shareholders’ Equity to

Total Assets and Total Shareholders’ Equity:

 

		Quarter ended
		12/31/2014				9/30/2014				6/30/2014				3/31/2014				12/31/2013
Tangible assets
Total assets		$	13,326,369			$	13,071,557			$	12,985,887			$	13,143,555			$	13,029,733
Less: Goodwill			291,498				291,498				291,498				286,800				286,800
Other identifiable intangible assets			24,508				25,619				26,745				25,021				26,079
Total tangible assets		$	13,010,363			$	12,754,440			$	12,667,644			$	12,831,734			$	12,716,854
Tangible shareholders’ equity
Total shareholders’ equity		$	1,606,059			$	1,610,543			$	1,588,850			$	1,554,676			$	1,513,130
Less: Goodwill			291,498				291,498				291,498				286,800				286,800
Other identifiable intangible assets			24,508				25,619				26,745				25,021				26,079
Total tangible shareholders’ equity		$	1,290,053			$	1,293,426			$	1,270,607			$	1,242,855			$	1,200,251
Total average assets		$	13,131,130			$	12,987,103			$	12,933,879			$	13,087,128			$	12,955,127
Total common shares outstanding			96,254,903				96,065,021				96,046,057				96,004,679				95,231,691
Average shares outstanding-diluted			96,506,827				96,373,950				96,373,121				95,952,611				96,644,383
Tangible shareholders’ equity to tangible assets*			9.92	%			10.14	%			10.03	%			9.69	%			9.44	%
Return on tangible equity **			8.81	%			8.83	%			9.74	%			9.28	%			9.16	%
Pre-tax pre-provision return on average assets ***			1.21	%			1.26	%			1.39	%			1.28	%			1.22	%
Tangible book value per share****		$	13.40			$	13.46			$	13.23			$	12.95			$	12.60
Operating earnings per share*****		$	0.30			$	0.32			$	0.33			$	0.30			$	0.29

 

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

**	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.

*****

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

- END -