EXHIBIT 99.1
Contact: | ||
William L. Prater | Gary C. Bonds | |
Treasurer and Chief Financial | Senior Vice President and | |
Officer | Principal Accounting Officer | |
662/680-2000 | 662/680-2332 |
BancorpSouth Announces Earnings of $0.41 per Diluted Share
for Second Quarter 2009
for Second Quarter 2009
TUPELO, Miss., July 22, 2009/PRNewswire-FirstCall via COMTEX/ — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended June 30, 2009.
Highlights of the second quarter include:
• | Net income of $33.9 million, or $0.41 per diluted share. | |
• | Comparable quarter and sequential quarter growth in net interest revenue. | |
• | Continued stability in the net interest margin at 3.75 percent for the quarter compared with 3.74 percent for the previous two quarters. | |
• | Growth of net loans and leases by 3.0 percent from the second quarter of 2008. | |
• | Strong credit quality, with non-performing loans of 1.00 percent of loans and leases and annualized net charge-offs of 0.55 percent of average loans and leases. | |
• | Record mortgage loan originations, with mortgage lending revenue, excluding mortgage servicing rights valuation adjustment, more than doubling year over year. | |
• | Continued strengthening in the Company’s already well-capitalized financial position, with an increase in the ratio of shareholders’ equity to assets to 9.59 percent. |
Summary Results
BancorpSouth’s net income for the second quarter of 2009 was $33.9 million, or $0.41 per diluted share, compared with $40.1 million, or $0.49 per diluted share, for the second quarter of 2008.
“As our second quarter financial results demonstrate, BancorpSouth continued to perform well in this difficult economic environment,” said Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth. “In our traditional banking business, the strengths of both our market position and operating fundamentals were evident as our loan portfolio continued to experience modest growth, the net interest margin remained stable, net interest revenue increased and credit quality remained strong. In addition, noninterest revenue continues to provide greater revenue diversification, while mitigating the impact of interest rate volatility.
“These strengths in combination with our focus on controlled growth and expense management produced solid profitability for the second quarter. The Company’s net income included the negative impact of a special FDIC assessment totaling $6.1 million, which was more than offset by increases in the valuation of the mortgage servicing rights and other noninterest revenue items. Our operating results contributed to a further strengthening of our financial position, and we entered the second half of 2009 with appropriate reserves against losses inherent within our portfolio and with ample liquidity.
“BancorpSouth’s results for the second quarter, as well as throughout this economic downturn, validate our continued confidence in our conservative business model, which is designed to produce long-term growth despite the effects of the economic cycle and interest rate volatility. With a strong capital base,
high quality assets and revenue diversification, we are well-positioned to manage through the current economic environment. We will remain focused on maintaining strong credit quality through early identification and resolution of any credit issues, as well as on controlling growth and managing expenses. In addition, our financial strength enables us to continue implementing a thoughtful expansion strategy and evaluating strategic opportunities that are consistent with our long-term growth objectives.”
Net Interest Revenue
Net interest revenue increased to $110.9 million for the second quarter of 2009, up 1.0 percent from $109.8 million for the second quarter of 2008 and from $109.9 million for the first quarter of 2009. The fully taxable equivalent net interest margin was 3.75 percent for the second quarter of 2009, compared with 3.79 percent for the second quarter of 2008 and 3.74 percent for the first quarter of 2009.
Patterson commented, “Reflecting continued loan growth and a disciplined asset/liability management strategy, BancorpSouth achieved increased net interest revenue for the second quarter compared with the second quarter of 2008 and the first quarter of 2009 by managing a greater decline in the dollar amount of interest expense than in interest revenue. We also maintained a relatively stable net interest margin across a 12-month period in which interest rates fell significantly during the first two quarters and generally stabilized at historically low rates thereafter.
“Interest revenue for the second quarter of 2009 benefitted from the growth of our loan portfolio since the end of the second quarter last year. During this period, we also continued to optimize asset yield through a strategy of funding loan growth in part with the proceeds from maturing, lower-yielding investment securities.
“We reduced interest expense for the quarter through more conservative pricing of other time deposits, which resulted in a 10.3 percent decline in the average balance of these deposits for the second quarter of 2009 from the second quarter of 2008. We more than offset this reduction with a 15.5 percent increase in the average balance of low cost demand deposits for the second quarter of 2009 from the comparable quarter in 2008.
“With interest rates at historically low levels thus far in 2009, we have adjusted our asset/liability management strategy with a goal of extending the maturities of time deposits through moderately more aggressive pricing in the past two quarters. We expect this step will better position BancorpSouth for a rising interest rate environment, despite some increased margin pressure in the short-term. The average balance of other time deposits increased 6.3 percent for the second quarter from the first quarter of 2009. Offsetting this increase, we reduced average short-term borrowings by 15.6 percent for the second quarter versus the first quarter, which enhanced the already ample liquidity sources represented by our borrowing capacity with the FHLB and other banks.”
Asset, Deposit and Loan Activity
Total assets at June 30, 2009 declined 0.8 percent to $13.3 billion from $13.4 billion at June 30, 2008. Total deposits of $10.2 billion at June 30, 2009 increased 3.6 percent from $9.8 billion at June 30, 2008. Loans and leases, net of unearned income, increased 3.0 percent to $9.8 billion at June 30, 2009 from $9.5 billion at June 30, 2008.
“In the context of the national economic environment, we attribute BancorpSouth’s ability to grow net loans and leases to the relative stability of our diversified geographic footprint and our careful expansion into attractive markets we understand well,” stated Patterson. “While we remain concerned about the slowing loan growth, we are confident of the long-term growth potential inherent in our eight-state franchise. As we work to position BancorpSouth to leverage sustained improvement in the economy, we will also continue to focus on controlled growth.”
Provision for Credit Losses and Allowance for Credit Losses
For the second quarter of 2009, the provision for credit losses was $17.6 million compared with $11.2 million for the second quarter of 2008 and $14.9 million for the first quarter of 2009. Annualized net charge-offs were 0.55 percent of average loans and leases for the second quarter of 2009 compared with 0.30 percent for the second quarter of 2008 and 0.54 percent for the first quarter of 2009.
Non-performing loans and leases increased to $97.7 million, or 1.00 percent of net loans and leases, at June 30, 2009 from $46.0 million, or 0.49 percent of net loans and leases, at June 30, 2008 and from $73.8 million, or 0.76 percent of net loans and leases, at March 31, 2009. The allowance for credit losses increased to 1.42 percent of net loans and leases at June 30, 2009 compared with 1.30 percent at June 30, 2008 and 1.39 percent at March 31, 2009.
Patterson said, “BancorpSouth’s credit quality continues to differentiate us from many of our peers in the financial services industry. Although an increase in non-performing loans and net charge-offs as a percentage of net loans and leases for the second quarter was not a surprise in an extended economic downturn, our credit quality remains strong relative to industry averages. The provision for credit losses of $17.6 million exceeded our net charge-offs for the quarter of $13.5 million, increasing our allowance for credit losses. At the end of the second quarter, our allowance for credit losses was 1.4 times non-performing loans and 2.6 times annualized net charge-offs for the quarter.”
Noninterest Revenue
For the second quarter of 2009, noninterest revenue increased 8.8 percent to $79.7 million from $73.3 million for the second quarter of 2008. For the second quarter of 2009, these results included a $2.9 million increase in the value of the mortgage servicing rights (MSR); $2.8 million in interest on tax refunds; a $2.0 million gain on the sale of student loans; a $1.8 million gain on the sale of the Company’s remaining shares of MasterCard, Inc. common stock; and $1.3 million related to insurance recovery on a casualty loss.
Results for the second quarter of 2008 included a $4.9 million increase in the value of the MSR and a $2.6 million gain on the sale of shares of MasterCard, Inc. common stock. The shares of MasterCard, Inc. stock sold by the Company had been restricted from sale, and the Company opted to participate in a share repurchase program offered by MasterCard, thereby increasing liquidity.
Patterson added, “For the second quarter, our mortgage origination business again benefited from the low-interest rate environment. Mortgage lending revenue, excluding MSR valuation adjustment, increased 140 percent to $11.0 million for the quarter from $4.6 million for the second quarter last year. For the first six months of 2009, we originated mortgage loans of $932 million compared with $963 million for all of 2008.
“We are also encouraged by sequential quarter growth in credit and debit card fee revenue and in service charge revenue. Our insurance commission revenue, at $20.6 million for the second quarter, continues to represent our largest noninterest revenue stream, although soft market conditions accounted for the 4.1 percent decrease in revenue compared with the second quarter last year.”
Noninterest Expense
Noninterest expense was $123.3 million for the second quarter of 2009, including the impact of a special FDIC assessment totaling $6.1 million. This assessment was in addition to the substantial increase
initiated in the first quarter of 2009 in BancorpSouth’s recurring FDIC premium. The Company continues to be assessed at the FDIC’s lowest rate because of its “well capitalized” status under federal regulations. Primarily as a result of the FDIC assessments, noninterest expense for the second quarter increased 10.0 percent from $112.1 million for the second quarter of 2008 and 4.1 percent from $118.5 million for the first quarter of 2009. The growth in noninterest expense from the second quarter of 2008 also reflected the opening of 17 full-service branch bank offices during 2008 and four full-service branch offices in 2009.
Capital Management
BancorpSouth’s commitment to a strong capital base is one of its fundamental operating principles. The Company’s capital base was further strengthened during the second quarter of 2009, as the ratio of shareholders’ equity to assets improved on a comparable quarter basis for the 12th consecutive quarter, increasing to 9.59 percent at the end of the second quarter from 9.21 percent at the end of the second quarter of 2008 and 9.33 percent at the end of the first quarter of 2009. The ratio of tangible equity to assets also increased to 7.53 percent from 7.12 percent at the end of the second quarter of 2008 and 7.29 percent at the end of the first quarter of 2009. BancorpSouth remains a “well capitalized” financial holding company as defined by federal regulations.
Summary
Patterson concluded, “While BancorpSouth’s operating strengths are highlighted by its performance in an unusually challenging environment, we remain appropriately cautious in our outlook due to uncertainty about economic conditions in the second half of 2009. Despite this uncertainty, our second quarter performance provides renewed confidence about our ability to weather the current environment and be well-positioned for further growth when the economic cycle improves.
“This confidence also reflects our position as a strong financial institution with high quality assets, a well-capitalized financial position, diversified revenues and an attractive market franchise. The conservative business model that supports our differentiated performance in today’s environment is integral to our long-term growth prospects. Our long-term record through a number of economic cycles demonstrates our disciplined commitment to this business model, a commitment that we believe sustains our ability to achieve long-term growth in shareholder value.”
Conference Call
BancorpSouth will conduct a conference call to discuss its first quarter 2009 results tomorrow, July 23, 2009, at 10:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth’s website at http://www.bancorpsouth.com. A replay of the conference call will be available at BancorpSouth’s website for at least two weeks following the call.
Forward-Looking Statements
Certain statements contained in this news release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could” or “intend.” These forward-looking statements include, without limitation, statements relating to maintaining our credit quality, adjustment to our asset/liability management strategy, our loan growth, our commitment to our business model and our ability to achieve long-term growth in shareholder value.
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, changes in general business or economic conditions or government fiscal and monetary policies, volatility and disruption in national and international financial markets, fluctuations in prevailing interest rates and the ability of BancorpSouth to manage its assets and liabilities to limit exposure to changing interest rates, the ability of BancorpSouth to increase noninterest revenue and expand noninterest revenue business, the ability of BancorpSouth to maintain credit quality, changes in laws and regulations affecting financial service companies in general, the ability of BancorpSouth to compete with other financial services companies, the ability of BancorpSouth to provide and market competitive services and products, changes in BancorpSouth’s operating or expansion strategy, BancorpSouth’s business model, geographic concentration of BancorpSouth’s assets, the ability of BancorpSouth to manage its growth and effectively serve an expanding customer and market base, the ability of BancorpSouth to achieve profitable growth and increase shareholder value, the ability of BancorpSouth to attract, train and retain qualified personnel, the ability of BancorpSouth to identify, close and effectively integrate potential acquisitions, the ability of BancorpSouth to expand geographically and enter growing markets, changes in consumer preferences, other factors generally understood to affect the financial results of financial services companies, and other factors described from time to time in BancorpSouth’s filings with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with approximately $13.3 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 318 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas. BancorpSouth Bank also operates an insurance location in Illinois.
BancorpSouth, Inc.
Selected Financial Data
Selected Financial Data
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Dollars in thousands, except per share amounts) | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Earnings Summary: | ||||||||||||||||
Net interest revenue | $ | 110,940 | $ | 109,843 | $ | 220,816 | $ | 219,913 | ||||||||
Provision for credit losses | 17,594 | 11,237 | 32,539 | 22,048 | ||||||||||||
Noninterest revenue | 79,739 | 73,266 | 146,032 | 139,497 | ||||||||||||
Noninterest expense | 123,267 | 112,064 | 241,720 | 225,534 | ||||||||||||
Income before income taxes | 49,818 | 59,808 | 92,589 | 111,828 | ||||||||||||
Income tax provision | 15,951 | 19,683 | 29,245 | 36,558 | ||||||||||||
Net income | $ | 33,867 | $ | 40,125 | $ | 63,344 | $ | 75,270 | ||||||||
Earning per share: Basic | $ | 0.41 | $ | 0.49 | $ | 0.76 | $ | 0.91 | ||||||||
Diluted | $ | 0.41 | $ | 0.49 | $ | 0.76 | $ | 0.91 | ||||||||
Balance sheet data at June 30: | ||||||||||||||||
Total assets | $ | 13,297,819 | $ | 13,399,151 | ||||||||||||
Total earning assets | 12,058,795 | 12,139,547 | ||||||||||||||
Loans and leases, net of unearned income | 9,761,400 | 9,481,380 | ||||||||||||||
Allowance for credit losses | 138,747 | 123,478 | ||||||||||||||
Total deposits | 10,157,547 | 9,806,553 | ||||||||||||||
Common shareholders’ equity | 1,274,947 | 1,233,776 | ||||||||||||||
Book value per share | 15.30 | 14.98 | ||||||||||||||
Average balance sheet data: | ||||||||||||||||
Total assets | $ | 13,260,786 | $ | 13,116,139 | $ | 13,292,655 | $ | 13,108,332 | ||||||||
Total earning assets | 12,135,163 | 11,957,174 | 12,161,014 | 11,952,466 | ||||||||||||
Loans and leases, net of unearned interest | 9,740,916 | 9,369,676 | 9,718,321 | 9,291,485 | ||||||||||||
Total deposits | 10,059,236 | 9,871,935 | 9,984,251 | 9,981,139 | ||||||||||||
Common shareholders’ equity | 1,250,950 | 1,226,570 | 1,244,994 | 1,213,013 | ||||||||||||
Non-performing assets at June 30: | ||||||||||||||||
Non-accrual loans and leases | $ | 45,542 | $ | 17,710 | ||||||||||||
Loans and leases 90+ days past due, still accruing | 43,866 | 25,719 | ||||||||||||||
Restructured loans and leases, still accruing | 8,264 | 2,620 | ||||||||||||||
Other real estate owned | 51,477 | 28,942 | ||||||||||||||
Total non-performing assets | 149,149 | 74,991 | ||||||||||||||
Net charge-offs as a percentage of average loans (annualized) | 0.55 | % | 0.30 | % | 0.55 | % | 0.30 | % | ||||||||
Performance ratios (annualized): | ||||||||||||||||
Return on average assets | 1.02 | % | 1.23 | % | 0.96 | % | 1.15 | % | ||||||||
Return on common equity | 10.86 | % | 13.16 | % | 10.26 | % | 12.48 | % | ||||||||
Net interest margin | 3.75 | % | 3.79 | % | 3.75 | % | 3.79 | % | ||||||||
Average shares outstanding — basic | 83,306,683 | 82,369,159 | 83,207,076 | 82,350,038 | ||||||||||||
Average shares outstanding — diluted | 83,460,486 | 82,565,722 | 83,342,086 | 82,549,761 |
BancorpSouth, Inc.
Consolidated Balance Sheet
(Unaudited)
Consolidated Balance Sheet
(Unaudited)
June 30, | % | |||||||||||
2009 | 2008 | Change | ||||||||||
(Dollars in thousands) | ||||||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 236,327 | $ | 307,038 | (23.03 | %) | ||||||
Interest bearing deposits with other banks | 28,836 | 15,531 | 85.67 | % | ||||||||
Held-to-maturity securities, at amortized cost | 1,204,618 | 1,447,806 | (16.80 | %) | ||||||||
Available-for-sale securities, at fair value | 969,207 | 1,023,065 | (5.26 | %) | ||||||||
Loans and leases | 9,806,735 | 9,529,978 | 2.90 | % | ||||||||
Less: Unearned income | 45,335 | 48,598 | (6.71 | %) | ||||||||
Allowance for credit losses | 138,747 | 123,478 | 12.37 | % | ||||||||
Net loans and leases | 9,622,653 | 9,357,902 | 2.83 | % | ||||||||
Loans held for sale | 94,736 | 171,765 | (44.85 | %) | ||||||||
Premises and equipment, net | 348,661 | 334,869 | 4.12 | % | ||||||||
Accrued interest receivable | 71,349 | 83,739 | (14.80 | %) | ||||||||
Goodwill | 270,097 | 270,807 | (0.26 | %) | ||||||||
Other assets | 451,335 | 386,629 | 16.74 | % | ||||||||
Total Assets | $ | 13,297,819 | $ | 13,399,151 | (0.76 | %) | ||||||
Liabilities | ||||||||||||
Deposits: | ||||||||||||
Demand: Noninterest bearing | $ | 1,773,418 | $ | 1,737,356 | 2.08 | % | ||||||
Interest bearing | 3,960,008 | 3,364,873 | 17.69 | % | ||||||||
Savings | 718,302 | 740,207 | (2.96 | %) | ||||||||
Other time | 3,705,819 | 3,964,117 | (6.52 | %) | ||||||||
Total deposits | 10,157,547 | 9,806,553 | 3.58 | % | ||||||||
Federal funds purchased and securities sold under agreement to repurchase | 755,609 | 1,093,805 | (30.92 | %) | ||||||||
Short-term Federal Home Loan Bank borrowings and other short-term borrowing | 475,000 | 643,427 | (26.18 | %) | ||||||||
Accrued interest payable | 24,084 | 29,134 | (17.33 | %) | ||||||||
Junior subordinated debt securities | 160,312 | 160,312 | 0.00 | % | ||||||||
Long-term Federal Home Loan Bank borrowings | 286,292 | 288,900 | (0.90 | %) | ||||||||
Other liabilities | 164,028 | 143,244 | 14.51 | % | ||||||||
Total Liabilities | 12,022,872 | 12,165,375 | (1.17 | %) | ||||||||
Shareholders’ Equity | ||||||||||||
Common stock | 208,391 | 205,945 | 1.19 | % | ||||||||
Capital surplus | 220,859 | 201,612 | 9.55 | % | ||||||||
Accumulated other comprehensive income (loss) | (25,162 | ) | (9,232 | ) | 172.55 | % | ||||||
Retained earnings | 870,859 | 835,451 | 4.24 | % | ||||||||
Total Shareholders’ Equity | 1,274,947 | 1,233,776 | 3.34 | % | ||||||||
Total Liabilities & Shareholders’ Equity | $ | 13,297,819 | $ | 13,399,151 | (0.76 | %) | ||||||
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
Quarter Ended | Year To Date | |||||||||||||||||||||||||||
Jun-09 | Mar-09 | Dec-08 | Sep-08 | Jun-08 | Jun-09 | Jun-08 | ||||||||||||||||||||||
INTEREST REVENUE: | ||||||||||||||||||||||||||||
Loans and leases | $ | 129,263 | $ | 129,209 | $ | 139,099 | $ | 144,393 | $ | 147,289 | $ | 258,472 | $ | 306,473 | ||||||||||||||
Deposits with other banks | 22 | 70 | 111 | 172 | 193 | 92 | 401 | |||||||||||||||||||||
Federal funds sold and securities purchased under agreement to resell | 3 | 1 | 3 | 218 | — | 4 | 67 | |||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||||||
Taxable | 12,108 | 13,031 | 13,625 | 14,063 | 15,044 | 25,139 | 30,991 | |||||||||||||||||||||
Tax-exempt | 2,155 | 2,111 | 2,053 | 1,959 | 2,025 | 4,266 | 4,100 | |||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||
Taxable | 8,721 | 9,038 | 8,693 | 9,025 | 8,531 | 17,759 | 18,095 | |||||||||||||||||||||
Tax-exempt | 826 | 883 | 867 | 874 | 1,260 | 1,709 | 2,464 | |||||||||||||||||||||
Loans held for sale | 1,215 | 1,275 | 2,117 | 1,920 | 1,420 | 2,490 | 3,630 | |||||||||||||||||||||
Total interest revenue | 154,313 | 155,618 | 166,568 | 172,624 | 175,762 | 309,931 | 366,221 | |||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Interest bearing demand | 9,738 | 12,248 | 15,924 | 14,214 | 12,938 | 21,986 | 30,195 | |||||||||||||||||||||
Savings | 927 | 936 | 1,080 | 1,366 | 1,291 | 1,863 | 2,834 | |||||||||||||||||||||
Other time | 26,496 | 25,833 | 28,293 | 33,660 | 39,778 | 52,329 | 86,638 | |||||||||||||||||||||
Federal funds purchased and securities sold under agreement to repurchase | 421 | 572 | 2,175 | 4,308 | 3,321 | 993 | 8,516 | |||||||||||||||||||||
FHLB Borrowings | 2,885 | 2,823 | 4,537 | 6,277 | 5,359 | 5,708 | 11,644 | |||||||||||||||||||||
Other | 2,906 | 3,330 | 3,238 | 3,197 | 3,232 | 6,236 | 6,481 | |||||||||||||||||||||
Total interest expense | 43,373 | 45,742 | 55,247 | 63,022 | 65,919 | 89,115 | 146,308 | |||||||||||||||||||||
Net interest revenue | 110,940 | 109,876 | 111,321 | 109,602 | 109,843 | 220,816 | 219,913 | |||||||||||||||||||||
Provision for credit losses | 17,594 | 14,945 | 17,822 | 16,306 | 11,237 | 32,539 | 22,048 | |||||||||||||||||||||
Net interest revenue, after provision for credit losses | 93,346 | 94,931 | 93,499 | 93,296 | 98,606 | 188,277 | 197,865 | |||||||||||||||||||||
NONINTEREST REVENUE: | ||||||||||||||||||||||||||||
Mortgage lending | 13,959 | 7,652 | (12,174 | ) | 3,270 | 9,507 | 21,611 | 11,050 | ||||||||||||||||||||
Credit card, debit card and merchant fees | 9,111 | 8,348 | 8,409 | 8,512 | 8,846 | 17,459 | 16,822 | |||||||||||||||||||||
Service charges | 15,642 | 14,085 | 16,915 | 17,687 | 17,093 | 29,727 | 32,932 | |||||||||||||||||||||
Trust income | 2,040 | 2,209 | 2,328 | 2,507 | 2,261 | 4,249 | 4,495 | |||||||||||||||||||||
Security gains (losses), net | 42 | 5 | (6,226 | ) | 100 | 199 | 47 | 277 | ||||||||||||||||||||
Insurance commissions | 20,575 | 22,645 | 18,752 | 21,779 | 21,462 | 43,220 | 46,130 | |||||||||||||||||||||
Other | 18,370 | 11,349 | 11,446 | 9,578 | 13,898 | 29,719 | 27,791 | |||||||||||||||||||||
Total noninterest revenue | 79,739 | 66,293 | 39,450 | 63,433 | 73,266 | 146,032 | 139,497 | |||||||||||||||||||||
NONINTEREST EXPENSES: | ||||||||||||||||||||||||||||
Salaries and employee benefits | 70,092 | 71,363 | 64,395 | 68,865 | 68,121 | 141,455 | 138,296 | |||||||||||||||||||||
Occupancy, net of rental income | 10,492 | 9,999 | 10,307 | 10,340 | 9,716 | 20,491 | 19,199 | |||||||||||||||||||||
Equipment | 5,855 | 6,222 | 6,319 | 6,214 | 6,245 | 12,077 | 12,678 | |||||||||||||||||||||
Other | 36,828 | 30,869 | 30,072 | 30,640 | 27,982 | 67,697 | 55,361 | |||||||||||||||||||||
Total noninterest expenses | 123,267 | 118,453 | 111,093 | 116,059 | 112,064 | 241,720 | 225,534 | |||||||||||||||||||||
Income before income taxes | 49,818 | 42,771 | 21,856 | 40,670 | 59,808 | 92,589 | 111,828 | |||||||||||||||||||||
Income tax expense | 15,951 | 13,294 | 5,060 | 12,325 | 19,683 | 29,245 | 36,558 | |||||||||||||||||||||
Net income | $ | 33,867 | $ | 29,477 | $ | 16,796 | $ | 28,345 | $ | 40,125 | $ | 63,344 | $ | 75,270 | ||||||||||||||
Net income per share: Basic | $ | 0.41 | $ | 0.35 | $ | 0.20 | $ | 0.34 | $ | 0.49 | $ | 0.76 | $ | 0.91 | ||||||||||||||
Diluted | $ | 0.41 | $ | 0.35 | $ | 0.20 | $ | 0.34 | $ | 0.49 | $ | 0.76 | $ | 0.91 | ||||||||||||||
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended | ||||||||||||||||||||
Jun-09 | Mar-09 | Dec-08 | Sep-08 | Jun-08 | ||||||||||||||||
LOAN AND LEASE PORTFOLIO: | ||||||||||||||||||||
Commercial and industrial | $ | 1,323,338 | $ | 1,266,579 | $ | 1,288,005 | $ | 1,273,768 | $ | 1,302,595 | ||||||||||
Real estate | ||||||||||||||||||||
Consumer mortgages | 2,054,666 | 2,037,439 | 2,096,568 | 2,108,991 | 2,103,281 | |||||||||||||||
Home equity | 532,337 | 519,528 | 511,480 | 500,489 | 470,503 | |||||||||||||||
Agricultural | 242,034 | 238,466 | 234,024 | 236,647 | 255,262 | |||||||||||||||
Commercial and industrial-owner occupied | 1,394,852 | 1,455,422 | 1,465,027 | 1,489,215 | 1,444,014 | |||||||||||||||
Construction, acquisition and development | 1,652,052 | 1,692,526 | 1,689,719 | 1,671,693 | 1,578,628 | |||||||||||||||
Commercial | 1,719,044 | 1,660,211 | 1,568,956 | 1,489,548 | 1,479,867 | |||||||||||||||
Credit cards | 101,844 | 98,450 | 93,650 | 90,112 | 90,193 | |||||||||||||||
All other | 741,233 | 744,202 | 743,848 | 731,949 | 757,037 | |||||||||||||||
Total loans | $ | 9,761,400 | $ | 9,712,823 | $ | 9,691,277 | $ | 9,592,412 | $ | 9,481,380 | ||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||
Balance, beginning of period | $ | 134,632 | $ | 132,793 | $ | 129,147 | $ | 123,478 | $ | 119,301 | ||||||||||
Loans and leases charged off: | ||||||||||||||||||||
Commercial and industrial | (754 | ) | (740 | ) | (802 | ) | (248 | ) | (1,679 | ) | ||||||||||
Real estate | ||||||||||||||||||||
Consumer mortgages | (4,877 | ) | (4,073 | ) | (3,582 | ) | (1,828 | ) | (1,977 | ) | ||||||||||
Home equity | (1,106 | ) | (1,153 | ) | (596 | ) | (361 | ) | (65 | ) | ||||||||||
Agricultural | (3 | ) | (37 | ) | (350 | ) | (19 | ) | — | |||||||||||
Commercial and industrial-owner occupied | (649 | ) | (836 | ) | (511 | ) | (67 | ) | (1,236 | ) | ||||||||||
Construction, acquisition and development | (4,335 | ) | (4,377 | ) | (6,208 | ) | (6,975 | ) | (1,291 | ) | ||||||||||
Commercial | (321 | ) | (560 | ) | (611 | ) | (203 | ) | — | |||||||||||
Credit cards | (1,290 | ) | (1,158 | ) | (953 | ) | (837 | ) | (990 | ) | ||||||||||
All other | (1,131 | ) | (1,217 | ) | (1,154 | ) | (826 | ) | (984 | ) | ||||||||||
Total loans charged off | (14,466 | ) | (14,151 | ) | (14,767 | ) | (11,364 | ) | (8,222 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Commercial and industrial | 67 | 124 | 273 | 95 | 530 | |||||||||||||||
Real estate | ||||||||||||||||||||
Consumer mortgages | 263 | 220 | 174 | 77 | 217 | |||||||||||||||
Home equity | 2 | 3 | 1 | 24 | 3 | |||||||||||||||
Agricultural | — | 2 | — | — | — | |||||||||||||||
Commercial and industrial-owner occupied | 248 | 8 | 54 | 3 | 13 | |||||||||||||||
Construction, acquisition and development | 4 | 86 | 97 | 64 | 14 | |||||||||||||||
Commercial | — | 56 | 23 | — | — | |||||||||||||||
Credit cards | 140 | 138 | 99 | 92 | 45 | |||||||||||||||
All other | 263 | 408 | 296 | 372 | 340 | |||||||||||||||
Total recoveries | 987 | 1,045 | 1,017 | 727 | 1,162 | |||||||||||||||
Net charge-offs | (13,479 | ) | (13,106 | ) | (13,750 | ) | (10,637 | ) | (7,060 | ) | ||||||||||
Provision charged to operating expense | 17,594 | 14,945 | 17,822 | 16,306 | 11,237 | |||||||||||||||
Other, net | — | — | (426 | ) | — | — | ||||||||||||||
Balance, end of period | $ | 138,747 | $ | 134,632 | $ | 132,793 | $ | 129,147 | $ | 123,478 | ||||||||||
Average loans for period | $ | 9,740,916 | $ | 9,695,475 | $ | 9,604,142 | $ | 9,529,731 | $ | 9,369,676 | ||||||||||
Ratios: | ||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.55 | % | 0.54 | % | 0.57 | % | 0.45 | % | 0.30 | % | ||||||||||
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended | ||||||||||||||||||||||||
Jun-09 | Mar-09 | Dec-08 | ||||||||||||||||||||||
NPL as a % | NPL as a % | NPL as a % | ||||||||||||||||||||||
NPL | of outstanding | NPL | of outstanding | NPL | of outstanding | |||||||||||||||||||
NON-PERFORMING LOANS | ||||||||||||||||||||||||
Commercial and industrial | $ | 9,203 | 0.70 | % | $ | 6,819 | 0.54 | % | $ | 7,397 | 0.57 | % | ||||||||||||
Real estate | ||||||||||||||||||||||||
Consumer mortgages | 20,162 | 0.98 | 18,113 | 0.89 | 17,970 | 0.86 | ||||||||||||||||||
Home equity | 2,247 | 0.42 | 1,590 | 0.31 | 939 | 0.18 | ||||||||||||||||||
Agricultural | 4,455 | 1.84 | 1,353 | 0.57 | 849 | 0.36 | ||||||||||||||||||
Commercial and industrial-owner occupied | 7,083 | 0.51 | 7,135 | 0.49 | 4,529 | 0.31 | ||||||||||||||||||
Construction, acquisition and development | 44,828 | 2.71 | 30,544 | 1.80 | 24,874 | 1.47 | ||||||||||||||||||
Commercial | 3,613 | 0.21 | 2,387 | 0.14 | 1,445 | 0.09 | ||||||||||||||||||
Credit cards | 4,127 | 4.05 | 3,934 | 4.00 | 3,882 | 4.15 | ||||||||||||||||||
All other | 1,954 | 0.26 | 1,941 | 0.26 | 2,128 | 0.29 | ||||||||||||||||||
Total loans | $ | 97,672 | 1.00 | % | $ | 73,816 | 0.76 | % | $ | 64,013 | 0.66 | % | ||||||||||||
Quarter Ended | ||||||||||||||||
Sep-08 | Jun-08 | |||||||||||||||
NPL as a % | NPL as a % | |||||||||||||||
NPL | of outstanding | NPL | of outstanding | |||||||||||||
Commercial and industrial | $ | 5,523 | 0.43 | % | $ | 6,656 | 0.51 | % | ||||||||
Real estate | ||||||||||||||||
Consumer mortgages | 22,136 | 1.05 | 14,859 | 0.71 | ||||||||||||
Home equity | 486 | 0.10 | 561 | 0.12 | ||||||||||||
Agricultural | 1,260 | 0.53 | 1,452 | 0.57 | ||||||||||||
Commercial and industrial-owner occupied | 3,281 | 0.22 | 2,757 | 0.19 | ||||||||||||
Construction, acquisition and development | 25,696 | 1.54 | 13,962 | 0.88 | ||||||||||||
Commercial | 628 | 0.04 | 791 | 0.05 | ||||||||||||
Credit cards | 3,705 | 4.11 | 3,588 | 3.98 | ||||||||||||
All other | 2,459 | 0.34 | 1,423 | 0.19 | ||||||||||||
Total loans | $ | 65,174 | 0.68 | % | $ | 46,049 | 0.49 | % | ||||||||
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended | ||||||||||||
June 30, 2009 | ||||||||||||
Average | Yield/ | |||||||||||
(Taxable equivalent basis) | Balance | Interest | Rate | |||||||||
ASSETS | ||||||||||||
Loans, loans held for sale, and leases net of unearned income | $ | 9,896,890 | $ | 131,313 | 5.32 | % | ||||||
Held-to-maturity securities: | ||||||||||||
Taxable | 1,040,896 | 12,218 | 4.71 | % | ||||||||
Tax-exempt | 186,473 | 3,316 | 7.13 | % | ||||||||
Available-for-sale securities: | ||||||||||||
Taxable | 919,217 | 8,721 | 3.81 | % | ||||||||
Tax-exempt | 69,960 | 1,270 | 7.28 | % | ||||||||
Short-term investments | 21,727 | 25 | 0.47 | % | ||||||||
Total interest earning assets and revenue | 12,135,163 | 156,863 | 5.18 | % | ||||||||
Other assets | 1,270,193 | |||||||||||
Less: allowance for credit losses | (144,570 | ) | ||||||||||
Total | $ | 13,260,786 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Deposits: | ||||||||||||
Demand — interest bearing | $ | 3,948,759 | $ | 9,738 | 0.99 | % | ||||||
Savings | 719,281 | 928 | 0.52 | % | ||||||||
Other time | 3,634,336 | 26,496 | 2.92 | % | ||||||||
Short-term borrowings | 1,340,244 | 470 | 0.14 | % | ||||||||
Junior subordinated debt | 160,312 | 2,928 | 7.33 | % | ||||||||
Long-term debt | 286,294 | 2,813 | 3.94 | % | ||||||||
Total interest bearing liabilities and expense | 10,089,226 | 43,373 | 1.72 | % | ||||||||
Demand deposits — noninterest bearing | 1,756,861 | |||||||||||
Other liabilities | 163,749 | |||||||||||
Total liabilities | 12,009,836 | |||||||||||
Shareholders’ equity | 1,250,950 | |||||||||||
Total | $ | 13,260,786 | ||||||||||
Net interest revenue | $ | 113,490 | ||||||||||
Net interest margin | 3.75 | % | ||||||||||
Net interest rate spread | 3.46 | % | ||||||||||
Interest bearing liabilities to interest earning assets | 83.14 | % | ||||||||||
Net interest tax equivalent adjustment | $ | 2,550 |
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Quarter Ended | ||||||||||||
June 30, 2008 | ||||||||||||
Average | Yield/ | |||||||||||
(Taxable equivalent basis) | Balance | Interest | Rate | |||||||||
ASSETS | ||||||||||||
Loans, loans held for sale, and leases net of unearned income | $ | 9,523,668 | $ | 149,506 | 6.31 | % | ||||||
Held-to-maturity securities: | ||||||||||||
Taxable | 1,312,998 | 15,263 | 4.68 | % | ||||||||
Tax-exempt | 184,022 | 3,115 | 6.81 | % | ||||||||
Available-for-sale securities: | ||||||||||||
Taxable | 804,875 | 8,532 | 4.26 | % | ||||||||
Tax-exempt | 111,113 | 1,938 | 7.01 | % | ||||||||
Short-term investments | 20,498 | 194 | 3.80 | % | ||||||||
Total interest earning assets and revenue | 11,957,174 | 178,548 | 6.01 | % | ||||||||
Other assets | 1,283,738 | |||||||||||
Less: allowance for credit losses | (124,773 | ) | ||||||||||
Total | $ | 13,116,139 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Deposits: | ||||||||||||
Demand — interest bearing | $ | 3,418,678 | $ | 12,939 | 1.52 | % | ||||||
Savings | 732,593 | 1,291 | 0.71 | % | ||||||||
Other time | 4,050,132 | 39,777 | 3.95 | % | ||||||||
Short-term borrowings | 1,390,189 | 6,013 | 1.74 | % | ||||||||
Junior subordinated debt | 160,312 | 3,060 | 7.68 | % | ||||||||
Long-term debt | 288,913 | 2,839 | 3.95 | % | ||||||||
Total interest bearing liabilities and expense | 10,040,817 | 65,919 | 2.64 | % | ||||||||
Demand deposits — noninterest bearing | 1,670,532 | |||||||||||
Other liabilities | 178,220 | |||||||||||
Total liabilities | 11,889,569 | |||||||||||
Shareholders’ equity | 1,226,570 | |||||||||||
Total | $ | 13,116,139 | ||||||||||
Net interest revenue | $ | 112,629 | ||||||||||
Net interest margin | 3.79 | % | ||||||||||
Net interest rate spread | 3.37 | % | ||||||||||
Interest bearing liabilities to interest earning assets | 83.97 | % | ||||||||||
Net interest tax equivalent adjustment | $ | 2,786 |
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year to Date | ||||||||||||
June 30, 2009 | ||||||||||||
Average | Yield/ | |||||||||||
(Taxable equivalent basis) | Balance | Interest | Rate | |||||||||
ASSETS | ||||||||||||
Loans, loans held for sale, and leases net of unearned income | 9,885,355 | 262,652 | 5.36 | % | ||||||||
Held-to-maturity securities: | ||||||||||||
Taxable | 1,093,542 | 25,359 | 4.68 | % | ||||||||
Tax-exempt | 184,274 | 6,563 | 7.18 | % | ||||||||
Available-for-sale securities: | ||||||||||||
Taxable | 905,534 | 17,759 | 3.96 | % | ||||||||
Tax-exempt | 71,876 | 2,628 | 7.37 | % | ||||||||
Short-term investments | 20,433 | 96 | 0.95 | % | ||||||||
Total interest earning assets and revenue | 12,161,014 | 315,057 | 5.22 | % | ||||||||
Other assets | 1,273,844 | |||||||||||
Less: allowance for credit losses | (142,203 | ) | ||||||||||
Total | $ | 13,292,655 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Deposits: | ||||||||||||
Demand — interest bearing | $ | 4,019,398 | $ | 21,986 | 1.10 | % | ||||||
Savings | 708,520 | 1,863 | 0.53 | % | ||||||||
Other time | 3,527,352 | 52,329 | 2.99 | % | ||||||||
Short-term borrowings | 1,463,551 | 1,429 | 0.20 | % | ||||||||
Junior subordinated debt | 160,312 | 5,883 | 7.40 | % | ||||||||
Long-term debt | 286,300 | 5,625 | 3.96 | % | ||||||||
Total interest bearing liabilities and expense | 10,165,433 | 89,115 | 1.77 | % | ||||||||
Demand deposits — noninterest bearing | 1,728,981 | |||||||||||
Other liabilities | 153,247 | |||||||||||
Total liabilities | 12,047,661 | |||||||||||
Shareholders’ equity | 1,244,994 | |||||||||||
Total | $ | 13,292,655 | ||||||||||
Net interest revenue | $ | 225,942 | ||||||||||
Net interest margin | 3.75 | % | ||||||||||
Net interest rate spread | 3.46 | % | ||||||||||
Interest bearing liabilities to interest earning assets | 83.59 | % | ||||||||||
Net interest tax equivalent adjustment | $ | 5,126 | ||||||||||
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
Year to Date | ||||||||||||
June 30, 2008 | ||||||||||||
Average | Yield/ | |||||||||||
(Taxable equivalent basis) | Balance | Interest | Rate | |||||||||
ASSETS | ||||||||||||
Loans, loans held for sale, and leases net of unearned income | $ | 9,440,229 | $ | 311,774 | 6.64 | % | ||||||
Held-to-maturity securities: | ||||||||||||
Taxable | 1,359,499 | 30,991 | 4.58 | % | ||||||||
Tax-exempt | 187,888 | 6,307 | 6.75 | % | ||||||||
Available-for-sale securities: | ||||||||||||
Taxable | 834,621 | 18,095 | 4.36 | % | ||||||||
Tax-exempt | 106,885 | 3,791 | 7.13 | % | ||||||||
Short-term investments | 23,344 | 468 | 4.04 | % | ||||||||
Total interest earning assets and revenue | 11,952,466 | 371,426 | 6.25 | % | ||||||||
Other assets | 1,278,802 | |||||||||||
Less: allowance for credit losses | (122,936 | ) | ||||||||||
Total | $ | 13,108,332 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Deposits: | ||||||||||||
Demand — interest bearing | $ | 3,451,922 | $ | 30,195 | 1.76 | % | ||||||
Savings | 720,998 | 2,834 | 0.79 | % | ||||||||
Other time | 4,170,695 | 86,638 | 4.18 | % | ||||||||
Short-term borrowings | 1,318,695 | 15,028 | 2.29 | % | ||||||||
Junior subordinated debt | 160,312 | 6,244 | 7.83 | % | ||||||||
Long-term debt | 269,153 | 5,369 | 4.01 | % | ||||||||
Total interest bearing liabilities and expense | 10,091,775 | 146,308 | 2.92 | % | ||||||||
Demand deposits — noninterest bearing | 1,637,524 | |||||||||||
Other liabilities | 166,020 | |||||||||||
Total liabilities | 11,895,319 | |||||||||||
Shareholders’ equity | 1,213,013 | |||||||||||
Total | $ | 13,108,332 | ||||||||||
Net interest revenue | $ | 225,118 | ||||||||||
Net interest margin | 3.79 | % | ||||||||||
Net interest rate spread | 3.33 | % | ||||||||||
Interest bearing liabilities to interest earning assets | 84.43 | % | ||||||||||
Net interest tax equivalent adjustment | $ | 5,205 |