Exhibit 99.1
News Release
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Contact: | ||
William L. Prater | Gary C. Bonds | |
Treasurer and Chief Financial Officer | Senior Vice President and Principal Accounting Officer | |
662/680-2000 | 662/680-2332 |
BancorpSouth Files Annual Report on Form 10-K for 2009
Revises Previously Reported Financial Condition and Results of Operation
TUPELO, Miss., March 15, 2010/PRNewswire-FirstCall via COMTEX/ — BancorpSouth, Inc. (NYSE: BXS) today announced the filing of its Annual Report on Form 10-K for the year ended December 31, 2009 with the Securities and Exchange Commission. As previously announced, the delay in filing the annual report resulted from management’s determination, in consultation with BancorpSouth’s independent registered public accounting firm and with the concurrence of the Audit Committee of the Board of Directors, that certain asset quality indicators, including the allowance for credit losses, and their impact on BancorpSouth’s financial statements for the fourth quarter and year ended December 31, 2009, should be further reviewed. As a result of this review, the Company’s previously announced results for the fourth quarter and year ended December 31, 2009 have been revised to reflect, among other things:
• | A $27.6 million increase in the provision for credit losses; a $4.5 million increase in foreclosed property expense, which included $3.8 million for a valuation allowance; a $2.3 million expense related to a specific litigation matter; and a reversal of interest income totaling $606,000 related to loans placed on non-accrual. | ||
• | A $21.6 million, or $0.26 per diluted share, reduction in net income, producing a net loss of $2.1 million, or $0.03 per diluted share, for the fourth quarter of 2009 and net income of $82.7 million, or $0.99 per diluted share, for the full-year 2009. | ||
• | Nonperforming loans and leases of $186.5 million, or 1.91 percent of net loans and leases at year end. | ||
• | Annualized net charge-offs of 1.27 percent of average loans and leases for the fourth quarter of 2009 and 0.76 percent for full-year 2009. | ||
• | An allowance for credit losses at year-end that was equal to 2.4 times net charge-offs for 2009 and 94 percent of non-performing loans and leases. The allowance for credit losses at year end was 1.80 percent of net loans and leases. | ||
• | A ratio of shareholders’ equity to assets of 9.69 percent at the end of 2009 and tangible equity to assets of 7.63 percent. Year-end Tier 1 risk-based capital of 11.17 percent and total risk-based capital of 12.42 percent compared favorably with required minimum levels of 6 percent and 10 percent, respectively, to meet the definition of “well capitalized” under federal regulations. |
BXS Announces Filing of Annual Report on Form 10-K for 2009
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March 15, 2010
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March 15, 2010
Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth, commented, “BancorpSouth has completed an in-depth review of asset quality and adequacy of its allowance for credit losses. In February, it became necessary to determine whether certain additional provisions should be made in the fourth quarter of 2009. Working in conjunction with our independent auditors, we concluded that these matters should be included in the results of operations for the fourth quarter of 2009.
“The Company undertook a very thorough review of credit quality and adequacy of the allowance for credit losses, focusing especially on the real estate acquisition and development portfolio. As a result of this review, we determined that $27.6 million should be added to the provision as a result of rating downgrades and impairments.
“Given the deterioration in real estate values generally, we also determined that the Company should write down the net carrying value of other real estate owned by $4.5 million. This write-down included the establishment of a valuation reserve of $3.8 million for losses in other real estate owned. Another factor was the conclusion of a pending litigation matter in March 2010, which resulted in an additional litigation reserve of $2.3 million. The net effect of these and less significant individual adjustments resulted in essentially a break-even fourth quarter and annual earnings for 2009 of $82.7 million.
“To ensure an even stronger focus on credit quality in this difficult economic environment, the Company is currently taking steps to establish a centralized real estate risk management group which will add strength and direction to improved procedures for real estate appraisal processes, early identification and impairment of troubled credits, and generally tightened controls on all aspects of administration of this portfolio.
“As a result of our review, the allowance for credit losses was a 2.4 multiple of 2009 net charge-offs and 94 percent of non-performing loans at year end. I am confident that these enhanced reserves place the Company’s balance sheet in an extremely strong position.”
Conference Call
BancorpSouth will conduct a conference call to discuss the Company’s filing of its Annual Report on Form 10-K for 2009 tomorrow, March 16, 2010, at 8:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth’s website at http://www.bancorpsouth.com. Related presentation materials will be posted to the Company’s website prior to the call. 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
BXS Announces Filing of Annual Report on Form 10-K for 2009
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March 15, 2010
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March 15, 2010
include, without limitation, statements relating to asset quality, allowance and provision for credit losses, reserves, the establishment of a commercial real estate risk management group and the continuation of the economic downturn.
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 $13.2 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates approximately 314 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 | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||
Earnings Summary: | ||||||||||||||||
Net interest revenue | $ | 112,347 | $ | 111,321 | $ | 444,899 | $ | 440,836 | ||||||||
Provision for credit losses | 62,271 | 17,822 | 117,324 | 56,176 | ||||||||||||
Noninterest revenue | 64,505 | 40,085 | 275,276 | 245,607 | ||||||||||||
Noninterest expense | 123,361 | 111,728 | 490,017 | 455,913 | ||||||||||||
Income (loss) before income taxes | (8,780 | ) | 21,856 | 112,834 | 174,354 | |||||||||||
Income tax provision | (6,634 | ) | 5,060 | 30,105 | 53,943 | |||||||||||
Net income (loss) | ($2,146 | ) | $ | 16,796 | $ | 82,729 | $ | 120,411 | ||||||||
Earning (loss) per share: Basic | ($0.03 | ) | $ | 0.20 | $ | 0.99 | $ | 1.46 | ||||||||
Diluted | ($0.03 | ) | $ | 0.20 | $ | 0.99 | $ | 1.45 | ||||||||
Balance sheet data at December 31: | ||||||||||||||||
Total assets | $ | 13,167,867 | $ | 13,480,218 | ||||||||||||
Total earning assets | 11,939,776 | 12,210,439 | ||||||||||||||
Loans and leases, net of unearned income | 9,775,136 | 9,691,277 | ||||||||||||||
Allowance for credit losses | 176,043 | 132,793 | ||||||||||||||
Total deposits | 10,677,702 | 9,711,872 | ||||||||||||||
Common shareholders’ equity | 1,276,296 | 1,240,260 | ||||||||||||||
Book value per share | 15.29 | 14.92 | ||||||||||||||
Average balance sheet data: | ||||||||||||||||
Total assets | $ | 13,065,172 | $ | 13,279,593 | $ | 13,203,659 | $ | 13,200,801 | ||||||||
Total earning assets | 11,966,504 | 12,109,660 | 12,078,437 | 12,037,141 | ||||||||||||
Loans and leases, net of unearned interest | 9,750,989 | 9,604,142 | 9,734,580 | 9,429,963 | ||||||||||||
Total deposits | 10,448,617 | 9,598,321 | 10,155,730 | 9,803,999 | ||||||||||||
Common shareholders’ equity | 1,266,989 | 1,239,498 | 1,255,605 | 1,224,280 | ||||||||||||
Non-performing assets at December 31: | ||||||||||||||||
Non-accrual loans and leases | $ | 144,013 | $ | 28,168 | ||||||||||||
Loans and leases 90+ days past due, still accruing | 36,301 | 33,373 | ||||||||||||||
Restructured loans and leases, still accruing | 6,161 | 2,472 | ||||||||||||||
Other real estate owned | 59,265 | 46,317 | ||||||||||||||
Total non-performing assets | 245,740 | 110,330 | ||||||||||||||
Net charge-offs as a percentage of average loans (annualized) | 1.27 | % | 0.57 | % | 0.76 | % | 0.40 | % | ||||||||
Performance ratios (annualized): | ||||||||||||||||
Return on average assets | (0.07 | %) | 0.50 | % | 0.63 | % | 0.91 | % | ||||||||
Return on common equity | (0.67 | %) | 5.39 | % | 6.59 | % | 9.84 | % | ||||||||
Total shareholders’ equity to total assets | 9.69 | % | 9.20 | % | 9.69 | % | 9.20 | % | ||||||||
Tangible shareholders’ equity to tangible assets | 7.63 | % | 7.15 | % | 7.63 | % | 7.15 | % | ||||||||
Net interest margin | 3.81 | % | 3.74 | % | 3.77 | % | 3.75 | % | ||||||||
Average shares outstanding — basic | 83,399,113 | 83,096,799 | 83,295,461 | 82,589,400 | ||||||||||||
Average shares outstanding — diluted | 83,527,596 | 83,239,216 | 83,430,505 | 82,793,663 | ||||||||||||
Cash dividends per share | $ | 0.22 | $ | 0.22 | $ | 0.88 | $ | 0.87 | ||||||||
Tier I capital | 11.17 | % | 10.79 | % | 11.17 | % | 10.79 | % | ||||||||
Total Capital | 12.42 | % | 12.04 | % | 12.42 | % | 12.04 | % | ||||||||
Tier I leverage capital | 8.95 | % | 8.65 | % | 8.95 | % | 8.65 | % |
BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
Consolidated Balance Sheets
(Unaudited)
Dec-09 | Sep-09 | Jun-09 | Mar-09 | Dec-08 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 222,741 | $ | 189,103 | $ | 236,327 | $ | 242,180 | $ | 291,055 | ||||||||||
Interest bearing deposits with other banks | 15,704 | 43,067 | 28,836 | 34,230 | 13,542 | |||||||||||||||
Held-to-maturity securities, at amortized cost | 1,032,822 | 1,180,716 | 1,204,618 | 1,330,810 | 1,333,521 | |||||||||||||||
Available-for-sale securities, at fair value | 960,772 | 958,158 | 969,207 | 993,529 | 982,859 | |||||||||||||||
Federal funds sold and securities purchased under agreement to resell | 75,000 | 75,000 | — | — | — | |||||||||||||||
Loans and leases | 9,822,986 | 9,803,235 | 9,806,735 | 9,759,787 | 9,740,867 | |||||||||||||||
Less: Unearned income | 47,850 | 45,291 | 45,335 | 46,964 | 49,590 | |||||||||||||||
Allowance for credit losses | 176,043 | 144,791 | 138,747 | 134,632 | 132,793 | |||||||||||||||
Net loans and leases | 9,599,093 | 9,613,153 | 9,622,653 | 9,578,191 | 9,558,484 | |||||||||||||||
Loans held for sale | 80,343 | 80,053 | 94,736 | 168,769 | 189,242 | |||||||||||||||
Premises and equipment, net | 343,877 | 346,931 | 348,661 | 348,734 | 351,204 | |||||||||||||||
Accrued interest receivable | 68,651 | 74,589 | 71,349 | 77,503 | 79,183 | |||||||||||||||
Goodwill | 270,097 | 270,097 | 270,097 | 269,062 | 268,966 | |||||||||||||||
Bank owned life insurance | 187,770 | 189,043 | 185,822 | 184,026 | 182,272 | |||||||||||||||
Other assets | 310,997 | 251,963 | 265,513 | 231,330 | 229,890 | |||||||||||||||
Total Assets | $ | 13,167,867 | 13,271,873 | 13,297,819 | 13,458,364 | 13,480,218 | ||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand: Noninterest bearing | $ | 1,901,663 | 1,769,432 | 1,773,418 | 1,820,807 | 1,735,130 | ||||||||||||||
Interest bearing | 4,323,646 | 4,055,395 | 3,960,008 | 4,005,620 | 3,904,307 | |||||||||||||||
Savings | 725,192 | 712,446 | 718,302 | 719,676 | 678,326 | |||||||||||||||
Other time | 3,727,201 | 3,759,761 | 3,705,819 | 3,545,871 | 3,394,109 | |||||||||||||||
Total deposits | 10,677,702 | 10,297,034 | 10,157,547 | 10,091,974 | 9,711,872 | |||||||||||||||
Federal funds purchased and securities sold under agreement to repurchase | 539,870 | 816,374 | 755,609 | 1,256,649 | 1,205,366 | |||||||||||||||
Short-term Federal Home Loan Bank borrowings and other short-term borrowing | 203,500 | 200,000 | 475,000 | 210,000 | 691,510 | |||||||||||||||
Accrued interest payable | 19,588 | 24,243 | 24,084 | 22,841 | 20,755 | |||||||||||||||
Junior subordinated debt securities | 160,312 | 160,312 | 160,312 | 160,312 | 160,312 | |||||||||||||||
Long-term Federal Home Loan Bank borrowings | 112,771 | 286,281 | 286,292 | 286,302 | 286,312 | |||||||||||||||
Other liabilities | 177,828 | 201,411 | 164,028 | 174,627 | 163,831 | |||||||||||||||
Total Liabilities | 11,891,571 | 11,985,655 | 12,022,872 | 12,202,705 | 12,239,958 | |||||||||||||||
Shareholders’ Equity | ||||||||||||||||||||
Common stock | 208,626 | 208,615 | 208,391 | 207,811 | 207,763 | |||||||||||||||
Capital surplus | 222,547 | 222,135 | 220,859 | 216,138 | 215,255 | |||||||||||||||
Accumulated other comprehensive income (loss) | (8,409 | ) | (18,568 | ) | (25,162 | ) | (23,620 | ) | (26,896 | ) | ||||||||||
Retained earnings | 853,532 | 874,036 | 870,859 | 855,330 | 844,138 | |||||||||||||||
Total Shareholders’ Equity | 1,276,296 | 1,286,218 | 1,274,947 | 1,255,659 | 1,240,260 | |||||||||||||||
Total Liabilities & Shareholders’ Equity | $ | 13,167,867 | $ | 13,271,873 | $ | 13,297,819 | $ | 13,458,364 | $ | 13,480,218 | ||||||||||
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 | |||||||||||||||||||||||||||
Dec-09 | Sep-09 | Jun-09 | Mar-09 | Dec-08 | Dec-09 | Dec-08 | ||||||||||||||||||||||
INTEREST REVENUE: | ||||||||||||||||||||||||||||
Loans and leases | $ | 129,086 | $ | 129,455 | $ | 129,263 | $ | 129,209 | $ | 139,099 | $ | 517,013 | $ | 589,965 | ||||||||||||||
Deposits with other banks | 19 | 20 | 22 | 70 | 111 | 131 | 684 | |||||||||||||||||||||
Federal funds sold and securities purchased under agreement to resell | 43 | 27 | 3 | 1 | 3 | 74 | 288 | |||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||||||
Taxable | 10,128 | 11,690 | 12,108 | 13,031 | 13,625 | 46,957 | 58,679 | |||||||||||||||||||||
Tax-exempt | 2,393 | 2,193 | 2,155 | 2,111 | 2,053 | 8,852 | 8,112 | |||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||
Taxable | 8,675 | 8,592 | 8,721 | 9,038 | 8,693 | 35,026 | 35,813 | |||||||||||||||||||||
Tax-exempt | 875 | 812 | 826 | 883 | 867 | 3,396 | 4,205 | |||||||||||||||||||||
Loans held for sale | 777 | 698 | 1,215 | 1,275 | 2,117 | 3,965 | 7,667 | |||||||||||||||||||||
Total interest revenue | 151,996 | 153,487 | 154,313 | 155,618 | 166,568 | 615,414 | 705,413 | |||||||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||||||||||
Interest bearing demand | 9,023 | 9,038 | 9,738 | 12,248 | 15,924 | 40,047 | 60,333 | |||||||||||||||||||||
Savings | 900 | 937 | 927 | 936 | 1,080 | 3,700 | 5,280 | |||||||||||||||||||||
Other time | 23,445 | 25,534 | 26,496 | 25,833 | 28,293 | 101,308 | 148,591 | |||||||||||||||||||||
Federal funds purchased and securities sold under agreement to repurchase | 305 | 331 | 421 | 572 | 2,175 | 1,629 | 14,999 | |||||||||||||||||||||
FHLB borrowings | 3,012 | 2,877 | 2,885 | 2,823 | 4,537 | 11,597 | 22,458 | |||||||||||||||||||||
Junior subordinated debt | 2,863 | 2,884 | 2,928 | 2,955 | 3,162 | 11,630 | 12,469 | |||||||||||||||||||||
Other | 101 | 150 | (22 | ) | 375 | 76 | 604 | 447 | ||||||||||||||||||||
Total interest expense | 39,649 | 41,751 | 43,373 | 45,742 | 55,247 | 170,515 | 264,577 | |||||||||||||||||||||
Net interest revenue | 112,347 | 111,736 | 110,940 | 109,876 | 111,321 | 444,899 | 440,836 | |||||||||||||||||||||
Provision for credit losses | 62,271 | 22,514 | 17,594 | 14,945 | 17,822 | 117,324 | 56,176 | |||||||||||||||||||||
Net interest revenue, after provision for credit losses | 50,076 | 89,222 | 93,346 | 94,931 | 93,499 | 327,575 | 384,660 | |||||||||||||||||||||
NONINTEREST REVENUE: | ||||||||||||||||||||||||||||
Mortgage lending | 8,602 | 2,012 | 13,959 | 7,652 | (12,174 | ) | 32,225 | 2,146 | ||||||||||||||||||||
Credit card, debit card and merchant fees | 7,883 | 8,902 | 9,111 | 8,348 | 8,409 | 34,244 | 33,743 | |||||||||||||||||||||
Service charges | 18,689 | 19,049 | 18,371 | 16,755 | 19,295 | 72,864 | 77,091 | |||||||||||||||||||||
Trust income | 3,014 | 2,435 | 2,040 | 2,209 | 2,328 | 9,698 | 9,330 | |||||||||||||||||||||
Security gains (losses), net | (102 | ) | — | 42 | 5 | (6,226 | ) | (55 | ) | (5,849 | ) | |||||||||||||||||
Insurance commissions | 17,583 | 20,134 | 20,575 | 22,645 | 18,752 | 80,937 | 86,661 | |||||||||||||||||||||
Other | 8,836 | 9,943 | 16,380 | 10,204 | 9,701 | 45,363 | 42,485 | |||||||||||||||||||||
Total noninterest revenue | 64,505 | 62,475 | 80,478 | 67,818 | 40,085 | 275,276 | 245,607 | |||||||||||||||||||||
NONINTEREST EXPENSES: | ||||||||||||||||||||||||||||
Salaries and employee benefits | 66,926 | 70,353 | 70,092 | 71,363 | 64,395 | 278,734 | 271,556 | |||||||||||||||||||||
Occupancy, net of rental income | 10,897 | 10,720 | 10,492 | 9,999 | 10,307 | 42,108 | 39,846 | |||||||||||||||||||||
Equipment | 5,578 | 5,853 | 5,855 | 6,222 | 6,319 | 23,508 | 25,211 | |||||||||||||||||||||
Deposit insurance assessments | 3,786 | 3,402 | 9,358 | 3,126 | 1,444 | 19,672 | 2,852 | |||||||||||||||||||||
Other | 36,174 | 32,344 | 28,209 | 29,268 | 29,263 | 125,995 | 116,448 | |||||||||||||||||||||
Total noninterest expenses | 123,361 | 122,672 | 124,006 | 119,978 | 111,728 | 490,017 | 455,913 | |||||||||||||||||||||
Income (loss) before income taxes | (8,780 | ) | 29,025 | 49,818 | 42,771 | 21,856 | 112,834 | 174,354 | ||||||||||||||||||||
Income tax expense (credit) | (6,634 | ) | 7,494 | 15,951 | 13,294 | 5,060 | 30,105 | 53,943 | ||||||||||||||||||||
Net income (loss) | $ | (2,146 | ) | $ | 21,531 | $ | 33,867 | $ | 29,477 | $ | 16,796 | $ | 82,729 | $ | 120,411 | |||||||||||||
Net income (loss) per share: Basic | $ | (0.03 | ) | $ | 0.26 | $ | 0.41 | $ | 0.35 | $ | 0.20 | $ | 0.99 | $ | 1.46 | |||||||||||||
Diluted | $ | (0.03 | ) | $ | 0.26 | $ | 0.41 | $ | 0.35 | $ | 0.20 | $ | 0.99 | $ | 1.45 | |||||||||||||
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended | ||||||||||||||||||||
Dec-09 | Sep-09 | Jun-09 | Mar-09 | Dec-08 | ||||||||||||||||
LOAN AND LEASE PORTFOLIO: | ||||||||||||||||||||
Commercial and industrial | $ | 1,466,569 | $ | 1,442,344 | $ | 1,441,718 | $ | 1,390,042 | $ | 1,417,499 | ||||||||||
Real estate | ||||||||||||||||||||
Consumer mortgages | 2,017,067 | 2,046,433 | 2,054,666 | 2,037,439 | 2,096,568 | |||||||||||||||
Home equity | 550,085 | 540,875 | 532,337 | 519,528 | 511,480 | |||||||||||||||
Agricultural | 262,069 | 254,647 | 242,034 | 238,466 | 234,024 | |||||||||||||||
Commercial and industrial-owner occupied | 1,449,554 | 1,432,859 | 1,394,852 | 1,455,422 | 1,465,027 | |||||||||||||||
Construction, acquisition and development | 1,459,503 | 1,533,622 | 1,652,052 | 1,692,526 | 1,689,719 | |||||||||||||||
Commercial | 1,806,766 | 1,770,066 | 1,719,044 | 1,660,211 | 1,568,956 | |||||||||||||||
Credit cards | 108,086 | 103,208 | 101,844 | 98,450 | 93,650 | |||||||||||||||
All other | 655,437 | 633,890 | 622,853 | 620,739 | 614,354 | |||||||||||||||
Total loans | $ | 9,775,136 | $ | 9,757,944 | $ | 9,761,400 | $ | 9,712,823 | $ | 9,691,277 | ||||||||||
ALLOWANCE FOR CREDIT LOSSES: | ||||||||||||||||||||
Balance, beginning of period | $ | 144,791 | $ | 138,746 | $ | 134,632 | $ | 132,793 | $ | 129,147 | ||||||||||
Loans and leases charged off: | ||||||||||||||||||||
Commercial and industrial | (3,404 | ) | (3,913 | ) | (1,070 | ) | (1,147 | ) | (1,003 | ) | ||||||||||
Real estate | ||||||||||||||||||||
Consumer mortgages | (2,298 | ) | (2,669 | ) | (4,877 | ) | (4,073 | ) | (3,582 | ) | ||||||||||
Home equity | (1,835 | ) | (1,278 | ) | (1,106 | ) | (1,153 | ) | (596 | ) | ||||||||||
Agricultural | (401 | ) | (407 | ) | (3 | ) | (37 | ) | (350 | ) | ||||||||||
Commercial and industrial-owner occupied | (753 | ) | (1,795 | ) | (649 | ) | (836 | ) | (511 | ) | ||||||||||
Construction, acquisition and development | (20,766 | ) | (3,160 | ) | (4,335 | ) | (4,377 | ) | (6,208 | ) | ||||||||||
Commercial | (568 | ) | (2,135 | ) | (321 | ) | (560 | ) | (611 | ) | ||||||||||
Credit cards | (1,118 | ) | (1,204 | ) | (1,290 | ) | (1,158 | ) | (953 | ) | ||||||||||
All other | (954 | ) | (938 | ) | (815 | ) | (810 | ) | (953 | ) | ||||||||||
Total loans charged off | (32,097 | ) | (17,499 | ) | (14,466 | ) | (14,151 | ) | (14,767 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Commercial and industrial | 194 | 320 | 68 | 179 | 279 | |||||||||||||||
Real estate | ||||||||||||||||||||
Consumer mortgages | 209 | 132 | 263 | 220 | 174 | |||||||||||||||
Home equity | 76 | 28 | 2 | 3 | 1 | |||||||||||||||
Agricultural | — | — | — | 2 | — | |||||||||||||||
Commercial and industrial-owner occupied | 10 | 31 | 248 | 8 | 54 | |||||||||||||||
Construction, acquisition and development | 7 | 31 | 4 | 86 | 97 | |||||||||||||||
Commercial | 25 | 108 | — | 56 | 23 | |||||||||||||||
Credit cards | 216 | 123 | 140 | 138 | 99 | |||||||||||||||
All other | 341 | 257 | 261 | 353 | 290 | |||||||||||||||
Total recoveries | 1,078 | 1,030 | 986 | 1,045 | 1,017 | |||||||||||||||
Net charge-offs | (31,019 | ) | (16,469 | ) | (13,480 | ) | (13,106 | ) | (13,750 | ) | ||||||||||
Provision charged to operating expense | 62,271 | 22,514 | 17,594 | 14,945 | 17,822 | |||||||||||||||
Other, net | — | — | — | — | (426 | ) | ||||||||||||||
Balance, end of period | $ | 176,043 | $ | 144,791 | $ | 138,746 | $ | 134,632 | $ | 132,793 | ||||||||||
Average loans for period | $ | 9,750,989 | $ | 9,750,159 | $ | 9,740,916 | $ | 9,695,475 | $ | 9,604,142 | ||||||||||
Ratios: | ||||||||||||||||||||
Net charge-offs to average loans (annualized) | 1.27 | % | 0.68 | % | 0.55 | % | 0.54 | % | 0.57 | % | ||||||||||
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Selected Loan Data
(Dollars in thousands)
(Unaudited)
Quarter Ended | ||||||||||||||||||||
Dec-09 | Sep-09 | Jun-09 | Mar-09 | Dec-08 | ||||||||||||||||
NON-PERFORMING ASSETS | ||||||||||||||||||||
NON-PERFORMING LOANS AND LEASES: | ||||||||||||||||||||
Nonaccrual Loans and Leases Commercial and industrial | $ | 4,852 | $ | 7,048 | $ | 7,364 | $ | 5,523 | $ | 7,378 | ||||||||||
Real estate | ||||||||||||||||||||
Consumer mortgages | 20,731 | 12,433 | 9,946 | 8,398 | 4,599 | |||||||||||||||
Home equity | 1,642 | 1,879 | 596 | 100 | 143 | |||||||||||||||
Agricultural | 1,136 | 2,647 | 970 | 673 | 440 | |||||||||||||||
Commercial and industrial-owner occupied | 7,039 | 5,044 | 2,631 | 4,153 | 1,768 | |||||||||||||||
Construction, acquisition and development | 82,170 | 39,989 | 21,742 | 17,984 | 12,393 | |||||||||||||||
Commercial | 23,209 | 12,228 | 1,023 | 925 | 432 | |||||||||||||||
Credit cards | 1,044 | 850 | 816 | 939 | 952 | |||||||||||||||
All other | 2,190 | 614 | 454 | 241 | 63 | |||||||||||||||
Total nonaccrual loans and leases | 144,013 | 82,732 | 45,542 | 38,936 | 28,168 | |||||||||||||||
Loans and Leases 90+ Days Past Due, Still Accruing: | ||||||||||||||||||||
Commercial and industrial | 1,797 | 1,062 | 1,919 | 1,489 | 715 | |||||||||||||||
Real estate | ||||||||||||||||||||
Consumer mortgages | 9,905 | 14,189 | 9,961 | 7,110 | 13,371 | |||||||||||||||
Home equity | 810 | 707 | 1,651 | 1,375 | 796 | |||||||||||||||
Agricultural | 1,015 | 289 | 3,292 | 421 | 409 | |||||||||||||||
Commercial and industrial-owner occupied | 4,511 | 1,342 | 4,253 | 2,982 | 2,761 | |||||||||||||||
Construction, acquisition and development | 13,482 | 1,477 | 18,648 | 11,372 | 12,481 | |||||||||||||||
Commercial | 2,558 | 305 | 2,351 | 1,021 | 1,013 | |||||||||||||||
Credit cards | 355 | 373 | 476 | 391 | 463 | |||||||||||||||
All other | 1,868 | 955 | 1,315 | 1,138 | 1,364 | |||||||||||||||
Total loans and leases 90+ past due, still accruing | 36,301 | 20,699 | 43,866 | 27,299 | 33,373 | |||||||||||||||
Restructured Loans and Leases, Still Accruing | 6,161 | 8,205 | 8,264 | 7,581 | 2,472 | |||||||||||||||
Total non-performing loans and leases | 186,475 | 111,636 | 97,672 | 73,816 | 64,013 | |||||||||||||||
OTHER REAL ESTATE OWNED: | 59,265 | 62,072 | 51,477 | 47,450 | 46,317 | |||||||||||||||
Total Non-performing Assets | $ | 245,740 | $ | 173,708 | $ | 149,149 | $ | 121,266 | $ | 110,330 | ||||||||||
Credit Quality Ratios: | ||||||||||||||||||||
Provision for credit losses to average loans and leases (annualized) | 2.55 | % | 0.92 | % | 0.72 | % | 0.62 | % | 0.74 | % | ||||||||||
Allowance for credit losses to net loans and leases | 1.80 | % | 1.48 | % | 1.42 | % | 1.39 | % | 1.37 | % | ||||||||||
Allowance for credit losses to non-performing assets | 71.64 | % | 83.35 | % | 93.03 | % | 111.02 | % | 120.36 | % | ||||||||||
Allowance for credit losses to non-performing loans and leases | 94.41 | % | 129.70 | % | 142.05 | % | 182.39 | % | 207.45 | % | ||||||||||
Non-performing loans and leases to net loans and leases | 1.91 | % | 1.14 | % | 1.00 | % | 0.76 | % | 0.66 | % | ||||||||||
Non-performing assets to net loans and leases | 2.51 | % | 1.77 | % | 1.53 | % | 1.25 | % | 1.14 | % |
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 | ||||||||||||
December 31, 2009 | ||||||||||||
Average | Yield/ | |||||||||||
(Taxable equivalent basis) | Balance | Interest | Rate | |||||||||
ASSETS | ||||||||||||
Loans, loans held for sale, and leases net of unearned income | $ | 9,821,066 | $ | 130,671 | 5.28 | % | ||||||
Held-to-maturity securities: | ||||||||||||
Taxable | 878,452 | 10,239 | 4.62 | % | ||||||||
Tax-exempt | 209,242 | 3,682 | 6.98 | % | ||||||||
Available-for-sale securities: | ||||||||||||
Taxable | 892,191 | 8,676 | 3.86 | % | ||||||||
Tax-exempt | 72,902 | 1,344 | 7.31 | % | ||||||||
Short-term investments | 92,651 | 61 | 0.26 | % | ||||||||
Total interest earning assets and revenue | 11,966,504 | 154,673 | 5.13 | % | ||||||||
Other assets | 1,267,510 | |||||||||||
Less: allowance for credit losses | (168,842 | ) | ||||||||||
Total | $ | 13,065,172 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Deposits: | ||||||||||||
Demand — interest bearing | $ | 4,155,330 | $ | 9,023 | 0.86 | % | ||||||
Savings | 717,630 | 900 | 0.50 | % | ||||||||
Other time | 3,748,894 | 23,445 | 2.48 | % | ||||||||
Short-term borrowings | 713,972 | 405 | 0.23 | % | ||||||||
Junior subordinated debt | 160,312 | 2,865 | 7.09 | % | ||||||||
Long-term debt | 303,301 | 3,011 | 3.94 | % | ||||||||
Total interest bearing liabilities and expense | 9,799,439 | 39,649 | 1.61 | % | ||||||||
Demand deposits - noninterest bearing | 1,826,763 | |||||||||||
Other liabilities | 171,981 | |||||||||||
Total liabilities | 11,798,183 | |||||||||||
Shareholders’ equity | 1,266,989 | |||||||||||
Total | $ | 13,065,172 | ||||||||||
Net interest revenue | $ | 115,024 | ||||||||||
Net interest margin | 3.81 | % | ||||||||||
Net interest rate spread | 3.52 | % | ||||||||||
Interest bearing liabilities to interest earning assets | 81.89 | % | ||||||||||
Net interest tax equivalent adjustment | $ | 2,677 |
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 | ||||||||||||
September 30, 2009 | ||||||||||||
Average | Yield/ | |||||||||||
(Taxable equivalent basis) | Balance | Interest | Rate | |||||||||
ASSETS | ||||||||||||
Loans, loans held for sale, and leases net of unearned income | $ | 9,808,427 | $ | 130,957 | 5.30 | % | ||||||
Held-to-maturity securities: | ||||||||||||
Taxable | 998,773 | 11,799 | 4.69 | % | ||||||||
Tax-exempt | 199,360 | 3,373 | 6.71 | % | ||||||||
Available-for-sale securities: | ||||||||||||
Taxable | 889,278 | 8,591 | 3.83 | % | ||||||||
Tax-exempt | 69,737 | 1,251 | 7.12 | % | ||||||||
Short-term investments | 62,334 | 47 | 0.30 | % | ||||||||
Total interest earning assets and revenue | 12,027,909 | 156,020 | 5.15 | % | ||||||||
Other assets | 1,285,360 | |||||||||||
Less: allowance for credit losses | (146,212 | ) | ||||||||||
Total | $ | 13,167,057 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Deposits: | ||||||||||||
Demand — interest bearing | $ | 4,010,281 | $ | 9,038 | 0.89 | % | ||||||
Savings | 716,155 | 936 | 0.52 | % | ||||||||
Other time | 3,726,754 | 25,535 | 2.72 | % | ||||||||
Short-term borrowings | 1,071,144 | 544 | 0.20 | % | ||||||||
Junior subordinated debt | 160,312 | 2,884 | 7.14 | % | ||||||||
Long-term debt | 286,285 | 2,814 | 3.90 | % | ||||||||
Total interest bearing liabilities and expense | 9,970,931 | 41,751 | 1.66 | % | ||||||||
Demand deposits - noninterest bearing | 1,747,021 | |||||||||||
Other liabilities | 184,006 | |||||||||||
Total liabilities | 11,901,958 | |||||||||||
Shareholders’ equity | 1,265,099 | |||||||||||
Total | $ | 13,167,057 | ||||||||||
Net interest revenue | $ | 114,269 | ||||||||||
Net interest margin | 3.77 | % | ||||||||||
Net interest rate spread | 3.49 | % | ||||||||||
Interest bearing liabilities to interest earning assets | 82.90 | % | ||||||||||
Net interest tax equivalent adjustment | $ | 2,533 |
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 | ||||||||||||
March 31, 2009 | ||||||||||||
Average | Yield/ | |||||||||||
(Taxable equivalent basis) | Balance | Interest | Rate | |||||||||
ASSETS | ||||||||||||
Loans, loans held for sale, and leases net of unearned income | $ | 9,873,692 | $ | 131,339 | 5.39 | % | ||||||
Held-to-maturity securities: | ||||||||||||
Taxable | 1,146,772 | 13,141 | 4.65 | % | ||||||||
Tax-exempt | 182,051 | 3,247 | 7.23 | % | ||||||||
Available-for-sale securities: | ||||||||||||
Taxable | 891,699 | 9,038 | 4.11 | % | ||||||||
Tax-exempt | 73,814 | 1,358 | 7.46 | % | ||||||||
Short-term investments | 19,123 | 71 | 1.51 | % | ||||||||
Total interest earning assets and revenue | 12,187,151 | 158,194 | 5.26 | % | ||||||||
Other assets | 1,277,538 | |||||||||||
Less: allowance for credit losses | (139,811 | ) | ||||||||||
Total | $ | 13,324,878 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Deposits: | ||||||||||||
Demand — interest bearing | $ | 4,090,821 | $ | 12,248 | 1.21 | % | ||||||
Savings | 697,639 | 936 | 0.54 | % | ||||||||
Other time | 3,419,180 | 25,833 | 3.06 | % | ||||||||
Short-term borrowings | 1,588,229 | 959 | 0.24 | % | ||||||||
Junior subordinated debt | 160,312 | 2,955 | 7.48 | % | ||||||||
Long-term debt | 286,306 | 2,811 | 3.98 | % | ||||||||
Total interest bearing liabilities and expense | 10,242,487 | 45,742 | 1.81 | % | ||||||||
Demand deposits - noninterest bearing | 1,700,792 | |||||||||||
Other liabilities | 142,628 | |||||||||||
Total liabilities | 12,085,907 | |||||||||||
Shareholders’ equity | 1,238,971 | |||||||||||
Total | $ | 13,324,878 | ||||||||||
Net interest revenue | $ | 112,452 | ||||||||||
Net interest margin | 3.74 | % | ||||||||||
Net interest rate spread | 3.45 | % | ||||||||||
Interest bearing liabilities to interest earning assets | 84.04 | % | ||||||||||
Net interest tax equivalent adjustment | $ | 2,576 |
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 | ||||||||||||
December 31, 2008 | ||||||||||||
Average | Yield/ | |||||||||||
(Taxable equivalent basis) | Balance | Interest | Rate | |||||||||
ASSETS | ||||||||||||
Loans, loans held for sale, and leases net of unearned income | $ | 9,773,683 | $ | 142,039 | 5.78 | % | ||||||
Held-to-maturity securities: | ||||||||||||
Taxable | 1,193,555 | 13,734 | 4.58 | % | ||||||||
Tax-exempt | 180,695 | 3,159 | 6.96 | % | ||||||||
Available-for-sale securities: | ||||||||||||
Taxable | 868,913 | 8,693 | 3.98 | % | ||||||||
Tax-exempt | 73,476 | 1,335 | 7.23 | % | ||||||||
Short-term investments | 19,338 | 114 | 2.34 | % | ||||||||
Total interest earning assets and revenue | 12,109,660 | 169,074 | 5.55 | % | ||||||||
Other assets | 1,304,386 | |||||||||||
Less: allowance for credit losses | (134,453 | ) | ||||||||||
Total | $ | 13,279,593 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Deposits: | ||||||||||||
Demand — interest bearing | $ | 3,811,782 | $ | 15,924 | 1.66 | % | ||||||
Savings | 684,068 | 1,080 | 0.63 | % | ||||||||
Other time | 3,400,071 | 28,293 | 3.31 | % | ||||||||
Short-term borrowings | 1,828,010 | 3,951 | 0.86 | % | ||||||||
Junior subordinated debt | 160,312 | 3,161 | 7.84 | % | ||||||||
Long-term debt | 287,990 | 2,838 | 3.92 | % | ||||||||
Total interest bearing liabilities and expense | 10,172,233 | 55,247 | 2.16 | % | ||||||||
Demand deposits — noninterest bearing | 1,702,400 | |||||||||||
Other liabilities | 165,462 | |||||||||||
Total liabilities | 12,040,095 | |||||||||||
Shareholders’ equity | 1,239,498 | |||||||||||
Total | $ | 13,279,593 | ||||||||||
Net interest revenue | $ | 113,827 | ||||||||||
Net interest margin | 3.74 | % | ||||||||||
Net interest rate spread | 3.39 | % | ||||||||||
Interest bearing liabilities to interest earning assets | 84.00 | % | ||||||||||
Net interest tax equivalent adjustment | $ | 2,506 |
BancorpSouth, Inc.
Reconciliation of Tangible assets and Tangible Shareholders’ Equity to
Total Assets and Total Shareholders’ Equity
(Dollars in thousands)
(Unaudited)
Reconciliation of Tangible assets and Tangible Shareholders’ Equity to
Total Assets and Total Shareholders’ Equity
(Dollars in thousands)
(Unaudited)
December 31, | ||||||||
2009 | 2008 | |||||||
Tangible Assets (a): | ||||||||
Total assets | $ | 13,167,867 | $ | 13,480,218 | ||||
Less: Goodwill | 270,097 | 268,966 | ||||||
Identifiable intangible assets | 23,533 | 28,165 | ||||||
Total tangible assets | $ | 12,874,237 | $ | 13,183,087 | ||||
Tangible Shareholders’ Equity(a): | ||||||||
Total shareholders’ equity | $ | 1,276,296 | $ | 1,240,260 | ||||
Less: Goodwill | 270,097 | 268,966 | ||||||
Identifiable intangible assets | 23,533 | 28,165 | ||||||
Total tangible shareholders’ equity | $ | 982,666 | $ | 943,129 | ||||
Tangible shareholders’ equity to tangible assets | 7.63 | % | 7.15 | % |
(a) | BancorpSouth, Inc. utilizes tangible assets and tangible shareholders’ equity measures when evaluating the performance of the Company. Tangible shareholders’ equity is defined by the Company as total shareholders’ equity less goodwill and identifiable assets. Tangible assets are defined by the Company as total assets less goodwill and identifiable assets. The Company believes the ratio of tangible equity to tangible assets to be an important measure of financial strength of the Company. |