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 Second Quarter 2010 Financial Results
TUPELO, Miss., July 22, 2010/PRNewswire-FirstCall via COMTEX/ — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended June 30, 2010.
The Company had a net loss for the quarter of $12.6 million, or $0.15 per diluted share, compared with net income of $33.9 million, or $0.41 per diluted share, for the second quarter of 2009.
Commenting on the second quarter results, Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth, said, “The decline in BancorpSouth’s bottom-line results for the second quarter was primarily attributable to the impact of increased credit costs. Reported results for the second quarter of 2010 also included the negative impact of a reduction in the value of BancorpSouth’s mortgage servicing rights (MSR) of $8.3 million ($0.06 per diluted share after tax). The results of core operations were otherwise relatively stable on a comparable and sequential quarter basis. Specifically, our provision for credit losses was $62.4 million for the second quarter of 2010, up from $17.6 million for the second quarter last year and $43.5 million for the first quarter of 2010. Non-performing loans and leases (NPLs) increased by $66.6 million during the quarter, bringing total NPLs to $302.3 million at June 30, 2010.
“The bulk of credit quality issues are concentrated geographically, enhancing the focus of our resolution efforts. The majority of NPLs at the quarter end were in Alabama and the Nashville and the greater Memphis, Tennessee areas. Slowed housing starts coupled with an excess of lot inventory have combined to create an environment that has caused many borrowers to be unable to amortize their debt. This environment has also caused declines in real estate collateral values.
“At June 30, 2010, over 70 percent of our non-accrual loans had been determined to be collaterally dependent and had either been charged down or had a specific reserve to reflect values obtained from recent appraisals. As a result of these write-downs and reserves, the remaining net book balance of impaired loans was 61 percent of the unpaid principal balance. The allowance for credit losses that was not specifically allocated to impaired loans represented 212 percent of the remaining unimpaired non-accrual loan balance.
“We are encouraged that other areas of our business have remained relatively stable despite continued weakness in the economy. This consistency, combined with continued expense control, produced pre-tax, pre-provision earnings of $46.4 million for the quarter ended June 30, 2010.
“For the second quarter of 2010, we continued to generate new loans that have effectively offset normal loan runoff. This has been accomplished in an economic cycle that has seen the banking industry experience a year-to-year decline in loan balances of around 7 percent. Deposits continued to grow during the second quarter, with this growth coming in all major deposit categories and generally across our entire footprint. Continued deposit growth, combined with a lack of loan growth, resulted in an increase in average short-term investments of $125 million during the quarter. While this mix does not produce the highest short-term net interest margin in the current environment of historically low interest rates, it builds customer relationships and positions the Company better to manage interest rate risk. This funding
mix shift contributed to a reduction in net interest margin to 3.71 percent for the second quarter of 2010 from 3.75 percent and 3.88 percent for the comparable and sequential quarters, respectively.
“BancorpSouth’s capital remains very strong, and we have ample liquidity. In addition to supporting our continuing interest in industry consolidation opportunities that meet our strategic objectives, our strong capital enables us to manage our credit issues for the long-term benefit of the Company and our shareholders.
“In an environment that remains very stressful, our second quarter results demonstrate that we are dealing effectively with the challenges we face. We do not discount the work required to return the Company’s financial performance to more normal levels. We remain confident that BancorpSouth is well positioned to do so.”
Net Interest Revenue
Net interest revenue was $109.3 million for the second quarter of 2010, a decrease of 1.5 percent from $110.9 million for the second quarter of 2009 and 2.3 percent from $111.9 million for the first quarter of 2010. The fully taxable equivalent net interest margin was 3.71 percent for the second quarter of 2010, compared with 3.75 percent for the second quarter of 2009 and 3.88 percent for the first quarter of 2010.
Over the past two years, the net interest margin has remained in a range of 3.67 percent to 3.88 percent, with the high end of the range having been achieved in the first quarter of 2010. Several factors contributed to the decrease of 17 basis points (“bps”) from the first quarter of 2010. The higher level of average NPLs reduced the margin by 4 bps, reversal of current year interest for loans placed on non-accrual status or charged-off in the quarter caused a decline of 6 bps, and the remainder of the change was primarily attributable to the changing mix of earning assets and interest-bearing liabilities.
Asset, Deposit and Loan Activity
Total assets at June 30, 2010 were $13.4 billion, compared with $13.3 billion at June 30, 2009. Total deposits were $11.2 billion at June 30, 2010, an increase of 10.5 percent from $10.2 billion at June 30, 2009. Loans and leases, net of unearned income, were $9.6 billion at June 30, 2010, a decrease of 1.2 percent from $9.8 billion at June 30, 2009.
Loan demand remained weak during the second quarter of 2010, with the Company essentially replacing normal loan runoff with new loan production. Louisiana and East Texas provided most of the new loan production. During the twelve months ended June 30, 2010, loans and leases decreased $114.5 million. This decrease was primarily driven by a decrease in CAD loans of $270.5 million. This segment of the loan portfolio includes residential CAD loans, which had a number of problem loans. Residential CAD loans at June 30, 2010 totaled $569.6 million, reflecting a decrease of $66.6 million from June 30, 2009. Other types of loans contained in this loan segment that experienced significant declines during the past twelve months were 1-4 family construction loans, which decreased $74.1 million, and commercial construction loans, which decreased $119.3 million from June 30, 2009. While 1-4 family and commercial construction loans have not experienced the credit deterioration that has been experienced in the residential CAD segment, the slow-down in construction has resulted in lower outstanding balances.
Deposits grew to $11.2 billion or 10.5 percent over a year ago. The growth in deposits included a 7 percent increase in noninterest-bearing demand deposits, 19 percent growth in interest-bearing demand deposits, and a 4 percent increase in time deposits. The growth in deposit balances has been experienced broadly across the markets we serve. We are encouraged with the opportunity that these new customer and deepened existing customer relationships reflect.
Provision for Credit Losses and Allowance for Credit Losses
For the second quarter of 2010, the provision for credit losses was $62.4 million, compared with $17.6 million for the second quarter of 2009 and $43.5 million for the first quarter of 2010. Annualized net charge-offs were 2.08 percent of average loans and leases for the second quarter of 2010, compared with 0.55 percent for the second quarter of 2009 and 1.26 percent for the first quarter of 2010. These increases reflect increased impairments of loans where the Company has determined that borrowers are not likely to be able to repay under the original contractual terms.
NPLs increased to $302.3 million, or 3.13 percent of net loans and leases, at June 30, 2010 from $97.7 million, or 1.00 percent of net loans and leases, at June 30, 2009 and $235.7 million, or 2.43 percent of net loans and leases, at March 31, 2010. The allowance for credit losses increased to 2.08 percent of net loans and leases at June 30, 2010, compared with 1.42 percent at June 30, 2009 and 1.95 percent at March 31, 2010.
NPLs at June 30, 2010 included $263.8 million of loans on nonaccrual status, $17.7 million in loans 90 days or more past due and still accruing, and restructured loans still accruing of $20.8 million. Loans and leases 30-89 days past due decreased 8 percent from $142.8 million at March 31, 2010 to $130.9 million at June 30, 2010.
At the end of the second quarter, $102.9 million of NPLs, or 34.0 percent, were residential CAD loans, $60.9 million, or 20.1 percent, were other CAD loans, $46.5 million, or 15.4 percent, were commercial real estate mortgage loans, $44.4 million, or 14.7 percent, were consumer mortgages, and NPLs from all other loan types totaled $47.6 million, or 15.7 percent, of NPLs.
Noninterest Revenue
Noninterest revenue was $57.1 million for the second quarter of 2010, compared with $80.5 million for the second quarter of 2009 and $63.3 million for the first quarter of 2010. In the second quarter of 2010, mortgage production and servicing income was $6.0 million. This was offset by the $8.3 million negative MSR market valuation adjustment, resulting in negative net mortgage lending revenue of $2.3 million for the second quarter. Mortgage origination volume during the quarter totaled $290.6 million, down from $507.5 million in the second quarter of 2009 when refinancing accounted for 71 percent of production. In the second quarter of 2010, refinancing accounted for just 40 percent of originations.
Other non-interest revenue, including credit and debit card fees, service charges and trust income continue to reflect an increased level of activity on both a year-over-year and sequential quarter basis. Insurance commissions totaled $21.7 million, consistent with the first quarter of 2010 and up $1.1 million over the second quarter of 2009.
Noninterest Expense
BancorpSouth continued to control noninterest expenses well during the second quarter of 2010. These expenses totaled $120.0 million for the quarter compared with $124.0 million for the second quarter of 2009 and $120.5 million for the first quarter of 2010. Results for the second quarter of 2009 include the impact of a special FDIC assessment of $6.1 million. Excluding this assessment, the FDIC premium increased $1.1 million for the second quarter of 2010 from the same quarter in 2009.
Capital Management
BancorpSouth’s commitment to a strong capital base is one of its fundamental strengths. The Company’s equity capitalization is 100 percent common stock. This strong capital base has enabled BancorpSouth to forego participating in the Capital Purchase Program under TARP or raising new capital since the
economic recession began. BancorpSouth’s ratio of shareholders’ equity to assets was 9.24 percent at June 30, 2010, compared with 9.59 percent at June 30, 2009. The ratio of tangible equity to tangible assets was 7.23 percent at June 30, 2010, compared with 7.53 percent at June 30, 2009. BancorpSouth remains a “well capitalized” financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 10.53 percent at June 30, 2010 and total risk based capital of 11.79 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, to meet the definition of “well capitalized.”
Summary
Patterson concluded, “The second quarter of 2010 was a difficult one, focused on dealing with continuing credit issues. The challenge in dealing with these issues is to work through those problems, without neglecting areas that continue to present opportunities that will serve the Company well in the future. I am proud of our management team for the progress we have made on both fronts in the first half of 2010. As we have discussed throughout the recession, our credit quality was not immune to the impact of a severe and prolonged economic downturn. That said, we believe that we are well-positioned and have made significant progress in addressing our credit issues. We are — and intend to remain — well reserved against losses inherent in our loan portfolio. In addition, our strong capital supports our ability to work with our borrowers appropriately to avoid unnecessarily costly resolutions. We believe we have a good understanding of the specific markets primarily accountable for our increased NPLs, and we are taking appropriate action in resolving these problems.
“While the difficulties we have faced are not insignificant, they remain manageable, and we expect an improving economy to support a stronger performance within our core operations. We are proud of the stability demonstrated by these operations throughout the recessionary economy. We expect our culture of strong customer service, comprehensive financial products and services, and our strong capital position will continue to enable us to build long-term value for BancorpSouth’s shareholders.”
Conference Call
BancorpSouth will conduct a conference call to discuss its second quarter 2010 results tomorrow, July 23, 2010, at 10:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth’s website athttp://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 real estate values, our ability to manage through the current environment, our ability to remain well-reserved against losses in our loan portfolio, the ability of our borrowers to repay their loans, our ability to address credit issues, our understanding of and ability to resolve problems related to our NPLs, the number of new problem loans that we face, the impact of the economy on our core operations and the impact of our culture of strong customer service, sophisticated financial products and services and strong capital position.
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 $13.4 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.
BXS Announces Second Quarter Results
Page 7
July 22, 2010
BancorpSouth, Inc.
Selected Financial Data
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
| (Dollars in thousands, except per share amounts) | | | | | | | | | | | | | | | | |
Earnings Summary: | | | | | | | | | | | | | | | | |
| Net interest revenue | | $ | 109,329 | | | $ | 110,940 | | | $ | 221,211 | | | $ | 220,816 | |
| Provision for credit losses | | | 62,354 | | | | 17,594 | | | | 105,873 | | | | 32,539 | |
| Noninterest revenue | | | 57,086 | | | | 80,478 | | | | 120,418 | | | | 148,296 | |
| Noninterest expense | | | 120,016 | | | | 124,006 | | | | 240,499 | | | | 243,984 | |
| | | | | | | | | | | | | |
| Income (loss) before income taxes | | | (15,955 | ) | | | 49,818 | | | | (4,743 | ) | | | 92,589 | |
| Income tax provision (benefit) | | | (3,395 | ) | | | 15,951 | | | | (579 | ) | | | 29,245 | |
| | | | | | | | | | | | | |
| Net income (loss) | | | ($12,560 | ) | | $ | 33,867 | | | | ($4,164 | ) | | $ | 63,344 | |
| | | | | | | | | | | | | |
| Earning (loss) per share: Basic | | | ($0.15 | ) | | $ | 0.41 | | | | ($0.05 | ) | | $ | 0.76 | |
| | | | | | | | | | | | | |
| Diluted | | | ($0.15 | ) | | $ | 0.41 | | | | ($0.05 | ) | | $ | 0.76 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Balance sheet data at June 30: | | | | | | | | | | | | | | | | |
| Total assets | | | | | | | | | | $ | 13,421,004 | | | $ | 13,297,819 | |
| Total earning assets | | | | | | | | | | | 12,038,779 | | | | 12,058,795 | |
| Loans and leases, net of unearned income | | | | | | | | | | | 9,646,902 | | | | 9,761,400 | |
| Allowance for credit losses | | | | | | | | | | | 200,744 | | | | 138,747 | |
| Total deposits | | | | | | | | | | | 11,220,641 | | | | 10,157,547 | |
| Common shareholders’ equity | | | | | | | | | | | 1,240,259 | | | | 1,274,947 | |
| Book value per share | | | | | | | | | | | 14.86 | | | | 15.30 | |
| | | | | | | | | | | | | | | | | |
Average balance sheet data: | | | | | | | | | | | | | | | | |
| Total assets | | $ | 13,223,506 | | | $ | 13,260,786 | | | $ | 13,175,605 | | | $ | 13,292,655 | |
| Total earning assets | | | 12,110,349 | | | | 12,135,163 | | | | 12,045,309 | | | | 12,161,014 | |
| Loans and leases, net of unearned interest | | | 9,703,253 | | | | 9,740,916 | | | | 9,734,994 | | | | 9,718,321 | |
| Total deposits | | | 11,075,655 | | | | 10,059,237 | | | | 10,977,508 | | | | 9,984,251 | |
| Common shareholders’ equity | | | 1,245,786 | | | | 1,250,950 | | | | 1,255,543 | | | | 1,244,994 | |
| | | | | | | | | | | | | | | | | |
Non-performing assets at June 30: | | | | | | | | | | | | | | | | |
| Non-accrual loans and leases | | | | | | | | | | $ | 263,758 | | | $ | 45,542 | |
| Loans and leases 90+ days past due, still accruing | | | | | | | | | | | 17,696 | | | | 43,866 | |
| Restructured loans and leases, still accruing | | | | | | | | | | | 20,813 | | | | 8,264 | |
| Other real estate owned | | | | | | | | | | | 67,560 | | | | 51,477 | |
| | | | | | | | | | | | | | | |
| Total non-performing assets | | | | | | | | | | | 369,827 | | | | 149,149 | |
| | | | | | | | | | | | | | | | | |
| Net charge-offs as a percentage of average loans (annualized) | | | 2.08 | % | | | 0.55 | % | | | 1.67 | % | | | 0.55 | % |
| | | | | | | | | | | | | | | | | |
Performance ratios (annualized): | | | | | | | | | | | | | | | | |
| Return on average assets | | | (0.38 | %) | | | 1.02 | % | | | (0.06 | %) | | | 0.96 | % |
| Return on common equity | | | (4.04 | %) | | | 10.86 | % | | | (0.67 | %) | | | 10.26 | % |
| Total shareholders’ equity to total assets | | | 9.24 | % | | | 9.59 | % | | | 9.24 | % | | | 9.59 | % |
| Tangible shareholders’ equity to tangible assets | | | 7.23 | % | | | 7.53 | % | | | 7.23 | % | | | 7.53 | % |
| Net interest margin | | | 3.71 | % | | | 3.75 | % | | | 3.79 | % | | | 3.75 | % |
| | | | | | | | | | | | | | | | | |
| Average shares outstanding — basic | | | 83,429,120 | | | | 83,306,683 | | | | 83,416,465 | | | | 83,207,076 | |
| Average shares outstanding — diluted | | | 83,429,120 | | | | 83,460,486 | | | | 83,416,465 | | | | 83,342,086 | |
| Cash dividends per share | | $ | 0.22 | | | $ | 0.22 | | | $ | 0.44 | | | $ | 0.44 | |
| | | | | | | | | | | | | | | | | |
| Tier I capital | | | 10.53 | % | | | 11.34 | % | | | 10.53 | % | | | 11.34 | % |
| Total Capital | | | 11.79 | % | | | 11.09 | % | | | 11.79 | % | | | 11.09 | % |
| Tier I leverage capital | | | 8.35 | % | | | 8.92 | % | | | 8.35 | % | | | 8.92 | % |
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BXS Announces Second Quarter Results
Page 8
July 22, 2010
BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Jun-10 | | Mar-10 | | Dec-09 | | Sep-09 | | Jun-09 |
| | | | | | | (Dollars in thousands) | | | | |
| Assets | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 370,499 | | | $ | 187,115 | | | $ | 222,741 | | | $ | 189,103 | | | $ | 236,327 | |
| Interest bearing deposits with other banks | | | 111,040 | | | | 9,943 | | | | 15,704 | | | | 43,067 | | | | 28,836 | |
| Held-to-maturity securities, at amortized cost | | | 1,147,157 | | | | 1,219,983 | | | | 1,032,822 | | | | 1,180,716 | | | | 1,204,618 | |
| Available-for-sale securities, at fair value | | | 962,692 | | | | 891,221 | | | | 960,772 | | | | 958,158 | | | | 969,207 | |
| Federal funds sold and securities purchased under agreement to resell | | | 75,000 | | | | 120,000 | | | | 75,000 | | | | 75,000 | | | | — | |
| Loans and leases | | | 9,691,623 | | | | 9,756,081 | | | | 9,822,986 | | | | 9,803,235 | | | | 9,806,735 | |
| Less: Unearned income | | | 44,721 | | | | 45,259 | | | | 47,850 | | | | 45,291 | | | | 45,335 | |
| Allowance for credit losses | | | 200,744 | | | | 188,884 | | | | 176,043 | | | | 144,791 | | | | 138,747 | |
| | | |
| Net loans and leases | | | 9,446,158 | | | | 9,521,938 | | | | 9,599,093 | | | | 9,613,153 | | | | 9,622,653 | |
| Loans held for sale | | | 95,987 | | | | 80,312 | | | | 80,343 | | | | 80,053 | | | | 94,736 | |
| Premises and equipment, net | | | 336,645 | | | | 339,860 | | | | 343,877 | | | | 346,931 | | | | 348,661 | |
| Accrued interest receivable | | | 63,862 | | | | 69,022 | | | | 68,651 | | | | 74,589 | | | | 71,349 | |
| Goodwill | | | 270,097 | | | | 270,097 | | | | 270,097 | | | | 270,097 | | | | 270,097 | |
| Bank owned life insurance | | | 190,828 | | | | 189,022 | | | | 187,770 | | | | 189,043 | | | | 185,822 | |
| Other assets | | | 351,039 | | | | 331,677 | | | | 310,997 | | | | 251,963 | | | | 265,513 | |
| | | |
| Total Assets | | $ | 13,421,004 | | | $ | 13,230,190 | | | | 13,167,867 | | | | 13,271,873 | | | | 13,297,819 | |
| | | |
| Liabilities | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Demand: Noninterest bearing | | $ | 1,897,977 | | | $ | 1,860,579 | | | | 1,901,663 | | | | 1,769,432 | | | | 1,773,418 | |
| Interest bearing | | | 4,725,457 | | | | 4,589,029 | | | | 4,323,646 | | | | 4,055,395 | | | | 3,960,008 | |
| Savings | | | 770,112 | | | | 768,302 | | | | 725,192 | | | | 712,446 | | | | 718,302 | |
| Other time | | | 3,827,095 | | | | 3,776,251 | | | | 3,727,201 | | | | 3,759,761 | | | | 3,705,819 | |
| | | |
| Total deposits | | | 11,220,641 | | | | 10,994,161 | | | | 10,677,702 | | | | 10,297,034 | | | | 10,157,547 | |
| Federal funds purchased and securities sold under agreement to repurchase | | | 481,109 | | | | 480,795 | | | | 539,870 | | | | 816,374 | | | | 755,609 | |
| Short-term Federal Home Loan Bank borrowings and other short-term borrowing | | | 3,500 | | | | 2,500 | | | | 203,500 | | | | 200,000 | | | | 475,000 | |
| Accrued interest payable | | | 17,508 | | | | 17,972 | | | | 19,588 | | | | 24,243 | | | | 24,084 | |
| Junior subordinated debt securities | | | 160,312 | | | | 160,312 | | | | 160,312 | | | | 160,312 | | | | 160,312 | |
| Long-term Federal Home Loan Bank borrowings | | | 110,749 | | | | 112,760 | | | | 112,771 | | | | 286,281 | | | | 286,292 | |
| Other liabilities | | | 186,926 | | | | 196,806 | | | | 177,828 | | | | 201,411 | | | | 164,028 | |
| | | |
| Total Liabilities | | | 12,180,745 | | | | 11,965,306 | | | | 11,891,571 | | | | 11,985,655 | | | | 12,022,872 | |
| Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | |
| Common stock | | | 208,704 | | | | 208,655 | | | | 208,626 | | | | 208,615 | | | | 208,391 | |
| Capital surplus | | | 223,922 | | | | 223,307 | | | | 222,547 | | | | 222,135 | | | | 220,859 | |
| Accumulated other comprehensive income (loss) | | | (5,008 | ) | | | (10,645 | ) | | | (8,409 | ) | | | (18,568 | ) | | | (25,162 | ) |
| Retained earnings | | | 812,641 | | | | 843,567 | | | | 853,532 | | | | 874,036 | | | | 870,859 | |
| | | |
| Total Shareholders’ Equity | | | 1,240,259 | | | | 1,264,884 | | | | 1,276,296 | | | | 1,286,218 | | | | 1,274,947 | |
| | | |
| Total Liabilities & Shareholders’ Equity | | $ | 13,421,004 | | | $ | 13,230,190 | | | $ | 13,167,867 | | | $ | 13,271,873 | | | $ | 13,297,819 | |
| | | |
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BXS Announces Second Quarter Results
Page 9
July 22, 2010
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | Year To Date | |
| | | Jun-10 | | | Mar-10 | | | Dec-09 | | | Sep-09 | | | Jun-09 | | | Jun-10 | | | Jun-09 | |
| INTEREST REVENUE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans and leases | | $ | 124,621 | | | $ | 126,956 | | | $ | 129,086 | | | $ | 129,455 | | | $ | 129,263 | | | $ | 251,577 | | | $ | 258,472 | |
| Deposits with other banks | | | 33 | | | | 21 | | | | 19 | | | | 20 | | | | 22 | | | | 54 | | | | 92 | |
| Federal funds sold and securities purchased under agreement to resell | | | 143 | | | | 82 | | | | 43 | | | | 27 | | | | 3 | | | | 225 | | | | 4 | |
| Held-to-maturity securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 9,363 | | | | 9,415 | | | | 10,128 | | | | 11,690 | | | | 12,108 | | | | 18,778 | | | | 25,139 | |
| Tax-exempt | | | 2,412 | | | | 2,461 | | | | 2,393 | | | | 2,193 | | | | 2,155 | | | | 4,873 | | | | 4,266 | |
| Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 8,030 | | | | 8,385 | | | | 8,675 | | | | 8,592 | | | | 8,721 | | | | 16,415 | | | | 17,759 | |
| Tax-exempt | | | 833 | | | | 832 | | | | 875 | | | | 812 | | | | 826 | | | | 1,665 | | | | 1,709 | |
| Loans held for sale | | | 727 | | | | 506 | | | | 777 | | | | 698 | | | | 1,215 | | | | 1,233 | | | | 2,490 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total interest revenue | | | 146,162 | | | | 148,658 | | | | 151,996 | | | | 153,487 | | | | 154,313 | | | | 294,820 | | | | 309,931 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| INTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing demand | | | 9,751 | | | | 9,392 | | | | 9,023 | | | | 9,038 | | | | 9,738 | | | | 19,143 | | | | 21,986 | |
| Savings | | | 915 | | | | 889 | | | | 900 | | | | 937 | | | | 927 | | | | 1,804 | | | | 1,863 | |
| Other time | | | 21,535 | | | | 21,529 | | | | 23,445 | | | | 25,534 | | | | 26,496 | | | | 43,064 | | | | 52,329 | |
| Federal funds purchased and securities sold under agreement to repurchase | | | 215 | | | | 228 | | | | 305 | | | | 331 | | | | 421 | | | | 443 | | | | 993 | |
| FHLB borrowings | | | 1,553 | | | | 1,880 | | | | 3,012 | | | | 2,877 | | | | 2,885 | | | | 3,433 | | | | 5,708 | |
| Junior subordinated debt | | | 2,862 | | | | 2,855 | | | | 2,863 | | | | 2,884 | | | | 2,928 | | | | 5,717 | | | | 5,883 | |
| Other | | | 2 | | | | 3 | | | | 101 | | | | 150 | | | | (22 | ) | | | 5 | | | | 353 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total interest expense | | | 36,833 | | | | 36,776 | | | | 39,649 | | | | 41,751 | | | | 43,373 | | | | 73,609 | | | | 89,115 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest revenue | | | 109,329 | | | | 111,882 | | | | 112,347 | | | | 111,736 | | | | 110,940 | | | | 221,211 | | | | 220,816 | |
| Provision for credit losses | | | 62,354 | | | | 43,519 | | | | 62,271 | | | | 22,514 | | | | 17,594 | | | | 105,873 | | | | 32,539 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net interest revenue, after provision for credit losses | | | 46,975 | | | | 68,363 | | | | 50,076 | | | | 89,222 | | | | 93,346 | | | | 115,338 | | | | 188,277 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NONINTEREST REVENUE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mortgage lending | | | (2,304 | ) | | | 5,025 | | | | 8,602 | | | | 2,012 | | | | 13,959 | | | | 2,721 | | | | 21,611 | |
| Credit card, debit card and merchant fees | | | 9,333 | | | | 8,810 | | | | 7,883 | | | | 8,902 | | | | 9,111 | | | | 18,143 | | | | 17,459 | |
| Service charges | | | 18,953 | | | | 16,262 | | | | 18,689 | | | | 19,049 | | | | 18,371 | | | | 35,215 | | | | 35,126 | |
| Trust income | | | 2,707 | | | | 2,587 | | | | 3,014 | | | | 2,435 | | | | 2,040 | | | | 5,294 | | | | 4,249 | |
| Security gains (losses), net | | | (585 | ) | | | 1,297 | | | | (102 | ) | | | — | | | | 42 | | | | 712 | | | | 47 | |
| Insurance commissions | | | 21,666 | | | | 21,668 | | | | 17,583 | | | | 20,134 | | | | 20,575 | | | | 43,334 | | | | 43,220 | |
| Other | | | 7,316 | | | | 7,683 | | | | 8,836 | | | | 9,943 | | | | 16,380 | | | | 14,999 | | | | 26,584 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total noninterest revenue | | | 57,086 | | | | 63,332 | | | | 64,505 | | | | 62,475 | | | | 80,478 | | | | 120,418 | | | | 148,296 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NONINTEREST EXPENSES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 68,189 | | | | 69,287 | | | | 66,926 | | | | 70,353 | | | | 70,092 | | | | 137,476 | | | | 141,455 | |
| Occupancy, net of rental income | | | 10,527 | | | | 10,775 | | | | 10,897 | | | | 10,720 | | | | 10,492 | | | | 21,302 | | | | 20,491 | |
| Equipment | | | 5,877 | | | | 5,739 | | | | 5,578 | | | | 5,853 | | | | 5,855 | | | | 11,616 | | | | 12,077 | |
| Deposit insurance assessments | | | 4,362 | | | | 4,250 | | | | 3,786 | | | | 3,402 | | | | 9,358 | | | | 8,612 | | | | 12,484 | |
| Other | | | 31,061 | | | | 30,432 | | | | 36,174 | | | | 32,344 | | | | 28,209 | | | | 61,493 | | | | 57,477 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total noninterest expenses | | | 120,016 | | | | 120,483 | | | | 123,361 | | | | 122,672 | | | | 124,006 | | | | 240,499 | | | | 243,984 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) before income taxes | | | (15,955 | ) | | | 11,212 | | | | (8,780 | ) | | | 29,025 | | | | 49,818 | | | | (4,743 | ) | | | 92,589 | |
| Income tax expense (benefit) | | | (3,395 | ) | | | 2,816 | | | | (6,634 | ) | | | 7,494 | | | | 15,951 | | | | (579 | ) | | | 29,245 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net income (loss) | | | ($12,560 | ) | | $ | 8,396 | | | | ($2,146 | ) | | $ | 21,531 | | | $ | 33,867 | | | | ($4,164 | ) | | $ | 63,344 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income (loss) per share: Basic | | | ($0.15 | ) | | $ | 0.10 | | | | ($0.03 | ) | | $ | 0.26 | | | $ | 0.41 | | | | ($0.05 | ) | | $ | 0.76 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Diluted | | | ($0.15 | ) | | $ | 0.10 | | | | ($0.03 | ) | | $ | 0.26 | | | $ | 0.41 | | | | ($0.05 | ) | | $ | 0.76 | |
| | | | | | | | | | | | | | | | | | | | | | |
-MORE-
BXS Announces Second Quarter Results
Page 10
July 22, 2010
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Jun-10 | | | Mar-10 | | | Dec-09 | | | Sep-09 | | | Jun-09 | |
| LOAN AND LEASE PORTFOLIO: | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 1,483,335 | | | $ | 1,470,145 | | | $ | 1,466,569 | | | $ | 1,442,344 | | | $ | 1,441,718 | |
| Real estate | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 2,019,187 | | | | 2,014,085 | | | | 2,017,067 | | | | 2,046,433 | | | | 2,054,666 | |
| Home equity | | | 555,281 | | | | 549,924 | | | | 550,085 | | | | 540,875 | | | | 532,337 | |
| Agricultural | | | 260,489 | | | | 266,649 | | | | 262,069 | | | | 254,647 | | | | 242,034 | |
| Commercial and industrial-owner occupied | | | 1,407,704 | | | | 1,423,098 | | | | 1,449,554 | | | | 1,432,859 | | | | 1,394,852 | |
| Construction, acquisition and development | | | 1,381,591 | | | | 1,428,882 | | | | 1,459,503 | | | | 1,533,622 | | | | 1,652,052 | |
| Commercial | | | 1,794,644 | | | | 1,809,660 | | | | 1,806,766 | | | | 1,770,066 | | | | 1,719,044 | |
| Credit cards | | | 102,784 | | | | 101,464 | | | | 108,086 | | | | 103,208 | | | | 101,844 | |
| All other | | | 641,888 | | | | 646,915 | | | | 655,437 | | | | 633,890 | | | | 622,853 | |
| | | | | | | | | | | | | | | | |
| Total loans | | $ | 9,646,903 | | | $ | 9,710,822 | | | $ | 9,775,136 | | | $ | 9,757,944 | | | $ | 9,761,400 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| ALLOWANCE FOR CREDIT LOSSES: | | | | | | | | | | | | | | | | | | | | |
| Balance, beginning of period | | $ | 188,884 | | | $ | 176,043 | | | $ | 144,791 | | | $ | 138,746 | | | $ | 134,632 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans and leases charged off: | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | | (5,106 | ) | | | (2,169 | ) | | | (3,404 | ) | | | (3,913 | ) | | | (1,070 | ) |
| Real estate | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | (4,659 | ) | | | (4,598 | ) | | | (2,298 | ) | | | (2,669 | ) | | | (4,877 | ) |
| Home equity | | | (602 | ) | | | (1,683 | ) | | | (1,835 | ) | | | (1,278 | ) | | | (1,106 | ) |
| Agricultural | | | (473 | ) | | | (207 | ) | | | (401 | ) | | | (407 | ) | | | (3 | ) |
| Commercial and industrial-owner occupied | | | (3,845 | ) | | | (2,465 | ) | | | (753 | ) | | | (1,795 | ) | | | (649 | ) |
| Construction, acquisition and development | | | (31,655 | ) | | | (15,769 | ) | | | (20,766 | ) | | | (3,160 | ) | | | (4,335 | ) |
| Commercial | | | (2,593 | ) | | | (2,278 | ) | | | (568 | ) | | | (2,135 | ) | | | (321 | ) |
| Credit cards | | | (1,363 | ) | | | (1,160 | ) | | | (1,118 | ) | | | (1,204 | ) | | | (1,290 | ) |
| All other | | | (2,067 | ) | | | (1,050 | ) | | | (954 | ) | | | (938 | ) | | | (815 | ) |
| | | | | | | | | | | | | | | | |
| Total loans charged off | | | (52,363 | ) | | | (31,379 | ) | | | (32,097 | ) | | | (17,499 | ) | | | (14,466 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Recoveries: | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | | 242 | | | | 63 | | | | 194 | | | | 320 | | | | 68 | |
| Real estate | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 818 | | | | 64 | | | | 209 | | | | 132 | | | | 263 | |
| Home equity | | | 43 | | | | 52 | | | | 76 | | | | 28 | | | | 2 | |
| Agricultural | | | — | | | | — | | | | — | | | | — | | | | — | |
| Commercial and industrial-owner occupied | | | 44 | | | | 7 | | | | 10 | | | | 31 | | | | 248 | |
| Construction, acquisition and development | | | 211 | | | | 56 | | | | 7 | | | | 31 | | | | 4 | |
| Commercial | | | 27 | | | | 12 | | | | 25 | | | | 108 | | | | — | |
| Credit cards | | | 219 | | | | 150 | | | | 216 | | | | 123 | | | | 140 | |
| All other | | | 265 | | | | 297 | | | | 341 | | | | 257 | | | | 261 | |
| | | | | | | | | | | | | | | | |
| Total recoveries | | | 1,869 | | | | 701 | | | | 1,078 | | | | 1,030 | | | | 986 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs | | | (50,494 | ) | | | (30,678 | ) | | | (31,019 | ) | | | (16,469 | ) | | | (13,480 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Provision charged to operating expense | | | 62,354 | | | | 43,519 | | | | 62,271 | | | | 22,514 | | | | 17,594 | |
| Other, net | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| Balance, end of period | | $ | 200,744 | | | $ | 188,884 | | | $ | 176,043 | | | $ | 144,791 | | | $ | 138,746 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Average loans for period | | $ | 9,703,253 | | | $ | 9,767,088 | | | $ | 9,750,989 | | | $ | 9,750,159 | | | $ | 9,740,916 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Ratios: | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs to average loans (annualized) | | | 2.08 | % | | | 1.26 | % | | | 1.27 | % | | | 0.68 | % | | | 0.55 | % |
| | | | | | | | | | | | | | | | |
-MORE-
BXS Announces Second Quarter Results
Page 11
July 22, 2010
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Jun-10 | | | Mar-10 | | | Dec-09 | | | Sep-09 | | | Jun-09 | |
NON-PERFORMING ASSETS | | | | | | | | | | | | | | | | | | | | |
| NON-PERFORMING LOANS AND LEASES: | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual Loans and Leases | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 6,280 | | | $ | 6,306 | | | $ | 4,852 | | | $ | 7,048 | | | $ | 7,364 | |
| Real estate | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 37,514 | | | | 24,047 | | | | 20,731 | | | | 12,433 | | | | 9,946 | |
| Home equity | | | 1,565 | | | | 761 | | | | 1,642 | | | | 1,879 | | | | 596 | |
| Agricultural | | | 3,972 | | | | 3,049 | | | | 1,136 | | | | 2,647 | | | | 970 | |
| Commercial and industrial-owner occupied | | | 12,061 | | | | 15,083 | | | | 7,039 | | | | 5,044 | | | | 2,631 | |
| Construction, acquisition and development | | | 159,829 | | | | 116,191 | | | | 82,170 | | | | 39,989 | | | | 21,742 | |
| Commercial | | | 38,921 | | | | 30,094 | | | | 23,209 | | | | 12,228 | | | | 1,023 | |
| Credit cards | | | 726 | | | | 1,072 | | | | 1,044 | | | | 850 | | | | 816 | |
| All other | | | 2,890 | | | | 3,034 | | | | 2,190 | | | | 614 | | | | 454 | |
| | | | | | | | | | | | | | | | |
| Total nonaccrual loans and leases | | | 263,758 | | | | 199,637 | | | | 144,013 | | | | 82,732 | | | | 45,542 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans and Leases 90+ Days Past Due, Still Accruing: | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | | 7,093 | | | | 1,405 | | | | 1,797 | | | | 1,062 | | | | 1,919 | |
| Real estate | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 4,754 | | | | 10,984 | | | | 9,905 | | | | 14,189 | | | | 9,961 | |
| Home equity | | | — | | | | 320 | | | | 810 | | | | 707 | | | | 1,651 | |
| Agricultural | | | — | | | | 199 | | | | 1,015 | | | | 289 | | | | 3,292 | |
| Commercial and industrial-owner occupied | | | 733 | | | | 1,482 | | | | 4,511 | | | | 1,342 | | | | 4,253 | |
| Construction, acquisition and development | | | 1,490 | | | | 3,339 | | | | 13,482 | | | | 1,477 | | | | 18,648 | |
| Commercial | | | 3,068 | | | | 1,671 | | | | 2,558 | | | | 305 | | | | 2,351 | |
| Credit cards | | | 228 | | | | 296 | | | | 355 | | | | 373 | | | | 476 | |
| All other | | | 330 | | | | 756 | | | | 1,868 | | | | 955 | | | | 1,315 | |
| | | | | | | | | | | | | | | | |
| Total loans and leases 90+ past due, still accruing | | | 17,696 | | | | 20,452 | | | | 36,301 | | | | 20,699 | | | | 43,866 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Restructured Loans and Leases, Still Accruing | | | 20,813 | | | | 15,576 | | | | 6,161 | | | | 8,205 | | | | 8,264 | |
| | | | | | | | | | | | | | | | |
| Total non-performing loans and leases | | | 302,267 | | | | 235,665 | | | | 186,475 | | | | 111,636 | | | | 97,672 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| OTHER REAL ESTATE OWNED: | | | 67,560 | | | | 59,269 | | | | 59,265 | | | | 62,072 | | | | 51,477 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Non-performing Assets | | $ | 369,827 | | | $ | 294,934 | | | $ | 245,740 | | | $ | 173,708 | | | $ | 149,149 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans and Leases 30-89 Days Past Due, Still Accruing: | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 10,081 | | | $ | 17,248 | | | $ | 7,220 | | | $ | 7,391 | | | $ | 6,765 | |
| Real estate | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 30,286 | | | | 22,917 | | | | 24,263 | | | | 21,802 | | | | 23,947 | |
| Home equity | | | 2,664 | | | | 2,568 | | | | 2,000 | | | | 2,068 | | | | 2,488 | |
| Agricultural | | | 2,312 | | | | 3,814 | | | | 1,010 | | | | 838 | | | | 2,181 | |
| Commercial and industrial-owner occupied | | | 20,975 | | | | 21,798 | | | | 29,186 | | | | 7,286 | | | | 6,423 | |
| Construction, acquisition and development | | | 50,759 | | | | 58,385 | | | | 39,795 | | | | 7,753 | | | | 19,767 | |
| Commercial | | | 8,084 | | | | 11,627 | | | | 5,623 | | | | 12,246 | | | | 24,673 | |
| Credit cards | | | 1,220 | | | | 1,185 | | | | 1,457 | | | | 1,566 | | | | 1,473 | |
| All other | | | 4,472 | | | | 3,240 | | | | 3,061 | | | | 3,758 | | | | 2,762 | |
| | | | | | | | | | | | | | | | |
| Total Loans and Leases 30-89 days past due, still accruing | | $ | 130,853 | | | $ | 142,782 | | | $ | 113,615 | | | $ | 64,708 | | | $ | 90,479 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Credit Quality Ratios: | | | | | | | | | | | | | | | | | | | | |
| Provision for credit losses to average loans and leases (annualized) | | | 2.57 | % | | | 1.78 | % | | | 2.55 | % | | | 0.92 | % | | | 0.72 | % |
| Allowance for credit losses to net loans and leases | | | 2.08 | % | | | 1.95 | % | | | 1.80 | % | | | 1.48 | % | | | 1.42 | % |
| Allowance for credit losses to non-performing assets | | | 54.28 | % | | | 64.04 | % | | | 71.64 | % | | | 83.35 | % | | | 93.03 | % |
| Allowance for credit losses to non-performing loans and leases | | | 66.41 | % | | | 80.15 | % | | | 94.41 | % | | | 129.70 | % | | | 142.05 | % |
| Non-performing loans and leases to net loans and leases | | | 3.13 | % | | | 2.43 | % | | | 1.91 | % | | | 1.14 | % | | | 1.00 | % |
| Non-performing assets to net loans and leases | | | 3.83 | % | | | 3.04 | % | | | 2.51 | % | | | 1.77 | % | | | 1.53 | % |
-MORE-
BXS Announces Second Quarter Results
Page 12
July 22, 2010
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Jun-10 | | | Mar-10 | | | Dec-09 | | | Sep-09 | | | Jun-09 | |
REAL ESTATE CONSTRUCTION, ACQUISITION AND DEVELOPMENT (“CAD”) PORTFOLIO: | | | | | | | | | | | | | | | | | | | | |
| Outstanding Balance | | | | | | | | | | | | | | | | | | | | |
| Multi-family construction | | $ | 22,091 | | | $ | 28,598 | | | $ | 25,009 | | | $ | 28,371 | | | $ | 30,667 | |
| One-to-four family construction | | | 229,629 | | | | 242,209 | | | | 255,026 | | | | 284,466 | | | | 303,698 | |
| Recreation and all other loans | | | 44,175 | | | | 39,938 | | | | 50,122 | | | | 47,065 | | | | 53,888 | |
| Commercial construction | | | 245,700 | | | | 236,111 | | | | 240,917 | | | | 279,215 | | | | 365,024 | |
| Commercial acquisition and development | | | 270,413 | | | | 280,630 | | | | 282,766 | | | | 272,772 | | | | 262,612 | |
| Residential acquisition and development | | | 569,583 | | | | 601,396 | | | | 605,663 | | | | 621,733 | | | | 636,163 | |
| | | | | | | | | | | | | | | | |
| Total outstanding balance | | $ | 1,381,591 | | | $ | 1,428,882 | | | $ | 1,459,503 | | | $ | 1,533,622 | | | $ | 1,652,052 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual CAD Loans | | | | | | | | | | | | | | | | | | | | |
| Multi-family construction | | $ | 11,705 | | | $ | 9,071 | | | $ | 9,247 | | | $ | — | | | $ | — | |
| One-to-four family construction | | | 6,117 | | | | 4,223 | | | | 1,514 | | | | 6,489 | | | | 2,682 | |
| Recreation and all other loans | | | 685 | | | | — | | | | — | | | | — | | | | — | |
| Commercial construction | | | 24,723 | | | | 12,650 | | | | 6,684 | | | | — | | | | — | |
| Commercial acquisition and development | | | 15,558 | | | | 463 | | | | 2,527 | | | | 4,304 | | | | — | |
| Residential acquisition and development | | | 101,041 | | | | 89,783 | | | | 62,198 | | | | 29,196 | | | | 19,060 | |
| | | | | | | | | | | | | | | | |
| Total nonaccrual CAD loans | | | 159,829 | | | | 116,190 | | | | 82,170 | | | | 39,989 | | | | 21,742 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| CAD Loans 90+ Days Past Due, Still Accruing: | | | | | | | | | | | | | | | | | | | | |
| Multi-family construction | | | — | | | | — | | | | — | | | | — | | | | 119 | |
| One-to-four family construction | | | 365 | | | | 748 | | | | 1,535 | | | | 249 | | | | 2,361 | |
| Recreation and all other loans | | | — | | | | 146 | | | | 496 | | | | — | | | | — | |
| Commercial construction | | | 141 | | | | 16 | | | | — | | | | — | | | | 147 | |
| Commercial acquisition and development | | | 77 | | | | 678 | | | | 4,500 | | | | 83 | | | | 4,208 | |
| Residential acquisition and development | | | 907 | | | | 1,751 | | | | 6,951 | | | | 1,145 | | | | 11,814 | |
| | | | | | | | | | | | | | | | |
| Total CAD loans 90+ past due, still accruing | | | 1,490 | | | | 3,339 | | | | 13,482 | | | | 1,477 | | | | 18,649 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Restructured CAD Loans, Still Accruing | | | | | | | | | | | | | | | | | | | | |
| Multi-family construction | | | — | | | | — | | | | — | | | | — | | | | — | |
| One-to-four family construction | | | 1,072 | | | | — | | | | — | | | | 953 | | | | 953 | |
| Recreation and all other loans | | | — | | | | — | | | | — | | | | — | | | | — | |
| Commercial construction | | | — | | | | — | | | | 1,606 | | | | — | | | | — | |
| Commercial acquisition and development | | | 460 | | | | — | | | | — | | | | — | | | | 147 | |
| Residential acquisition and development | | | 946 | | | | 3,234 | | | | — | | | | 3,338 | | | | 3,337 | |
| | | | | | | | | | | | | | | | |
| Total restructured CAD loans, still accruing | | | 2,478 | | | | 3,234 | | | | 1,606 | | | | 4,291 | | | | 4,437 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Non-performing CAD loans | | $ | 163,797 | | | $ | 122,763 | | | $ | 97,258 | | | $ | 45,757 | | | $ | 44,828 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| CAD NPL as a % of Outstanding CAD Balance | | | | | | | | | | | | | | | | | | | | |
| Multi-family construction | | | 53.0 | % | | | 31.7 | % | | | 37.0 | % | | | — | % | | | 0.4 | % |
| One-to-four family construction | | | 3.3 | % | | | 2.1 | % | | | 1.2 | % | | | 2.7 | % | | | 2.0 | % |
| Recreation and all other loans | | | 1.6 | % | | | 0.4 | % | | | 1.0 | % | | | — | % | | | — | % |
| Commercial construction | | | 10.1 | % | | | 5.4 | % | | | 3.4 | % | | | — | % | | | — | % |
| Commercial acquisition and development | | | 6.0 | % | | | 0.4 | % | | | 2.5 | % | | | 1.6 | % | | | 1.7 | % |
| Residential acquisition and development | | | 18.1 | % | | | 15.8 | % | | | 11.4 | % | | | 5.4 | % | | | 5.4 | % |
| Total CAD NPL as a % of outstanding CAD balance | | | 11.9 | % | | | 8.6 | % | | | 6.7 | % | | | 3.0 | % | | | 2.7 | % |
- MORE -
BXS Announces Second Quarter Results
Page 13
July 22, 2010
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | As of | |
| | | Jun-10 | | | Mar-10 | | | Dec-09 | | | Sep-09 | | | Jun-09 | |
| | | | | | | | | | | | | | | | | | | | | |
| Unpaid principal balance of impaired credits | | $ | 243,221 | | | $ | 209,288 | | | $ | 161,631 | | | $ | 57,670 | | | $ | 47,923 | |
| Cumulative charge offs on impaired credits | | | 54,930 | | | | 37,989 | | | | 33,094 | | | | 12,976 | | | | 11,836 | |
| | | | | | | | | | | | | | | | |
| Outstanding balance of impaired credits | | | 188,291 | | | | 171,299 | | | | 128,537 | | | | 44,694 | | | | 36,087 | |
| | | | | | | | | | | | | | | | | | | | | |
| Other non-accrual loans and leases not impaired | | | 75,467 | | | | 28,338 | | | | 15,476 | | | | 38,038 | | | | 9,455 | |
| | | | | | | | | | | | | | | | |
| Total non-accrual loans and leases | | $ | 263,758 | | | $ | 199,637 | | | $ | 144,013 | | | $ | 82,732 | | | $ | 45,542 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for impaired credits | | | 40,721 | | | | 30,855 | | | | 22,747 | | | | 5,876 | | | | 3,968 | |
| | | | | | | | | | | | | | | | |
| Nonaccrual loans and leases, net of specific reserves | | $ | 223,037 | | | $ | 168,782 | | | $ | 121,266 | | | $ | 76,856 | | | $ | 41,574 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans and leases 90+ past due, still accruing | | | 17,696 | | | | 20,452 | | | | 36,301 | | | | 20,699 | | | | 43,866 | |
| Restructured loans and leases, still accruing | | | 20,813 | | | | 15,576 | | | | 6,161 | | | | 8,205 | | | | 8,264 | |
| | | | | | | | | | | | | | | | |
| Total non-performing loans and leases | | $ | 302,267 | | | $ | 235,665 | | | $ | 186,475 | | | $ | 111,636 | | | $ | 97,672 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for impaired credits | | | 40,721 | | | | 30,855 | | | | 22,747 | | | | 5,876 | | | | 3,968 | |
| Allowance for all other credits | | | 160,053 | | | | 158,029 | | | | 153,296 | | | | 138,915 | | | | 134,779 | |
| | | | | | | | | | | | | | | | |
| Total Allowance for Credit Losses | | $ | 200,774 | | | $ | 188,884 | | | $ | 176,043 | | | $ | 144,791 | | | $ | 138,747 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Outstanding balance of impaired credits | | $ | 188,291 | | | $ | 171,299 | | | $ | 128,537 | | | $ | 44,694 | | | $ | 36,087 | |
| Allowance for impaired credits | | | 40,721 | | | | 30,855 | | | | 22,747 | | | | 5,876 | | | | 3,968 | |
| | | | | | | | | | | | | | | | |
| Net book value of impaired credits | | $ | 147,570 | | | $ | 140,444 | | | $ | 105,790 | | | $ | 38,818 | | | $ | 32,119 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net book value of impaired credits as a % of unpaid principal balance | | | 61 | % | | | 67 | % | | | 65 | % | | | 67 | % | | | 67 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Coverage of other non-accrual loans and leases provided by the allowance for all other credits | | | 212 | % | | | 558 | % | | | 991 | % | | | 365 | % | | | 1425 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Coverage of non-performing loans and leases not impaired by the allowance for all other credits | | | 140 | % | | | 246 | % | | | 265 | % | | | 208 | % | | | 219 | % |
- MORE -
BXS Announces Second Quarter Results
Page 14
July 22, 2010
BancorpSouth, Inc.
Noninterest Revenue and Expense
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Jun-10 | | | Mar-10 | | | Dec-09 | | | Sep-09 | | | Jun-09 | |
NONINTEREST REVENUE: | | | | | | | | | | | | | | | | | | | | |
| Mortgage lending | | $ | (2,304 | ) | | $ | 5,025 | | | $ | 8,602 | | | $ | 2,012 | | | $ | 13,959 | |
| Credit card, debit card and merchant fees | | | 9,333 | | | | 8,810 | | | | 7,883 | | | | 8,902 | | | | 9,111 | |
| Service charges | | | 18,953 | | | | 16,262 | | | | 18,689 | | | | 19,049 | | | | 18,371 | |
| Trust income | | | 2,707 | | | | 2,587 | | | | 3,014 | | | | 2,435 | | | | 2,040 | |
| Securities gains (losses), net | | | (585 | ) | | | 1,297 | | | | (102 | ) | | | — | | | | 42 | |
| Insurance commissions | | | 21,666 | | | | 21,668 | | | | 17,583 | | | | 20,134 | | | | 20,575 | |
| Annuity fees | | | 698 | | | | 781 | | | | 1,060 | | | | 572 | | | | 739 | |
| Brokerage commissions and fees | | | 1,419 | | | | 1,317 | | | | 1,390 | | | | 1,349 | | | | 1,086 | |
| Bank-owned life insurance | | | 1,972 | | | | 1,669 | | | | 1,843 | | | | 3,222 | | | | 1,796 | |
| Other miscellaneous income | | | 3,227 | | | | 3,916 | | | | 4,543 | | | | 4,800 | | | | 12,759 | |
| | | | | | | | | | | | | | | | |
| Total noninterest revenue | | $ | 57,086 | | | $ | 63,332 | | | $ | 64,505 | | | $ | 62,475 | | | $ | 80,478 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
NONINTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | $ | 68,189 | | | $ | 69,287 | | | $ | 66,926 | | | $ | 70,353 | | | $ | 70,092 | |
| Occupancy, net | | | 10,527 | | | | 10,775 | | | | 10,897 | | | | 10,720 | | | | 10,492 | |
| Equipment | | | 5,877 | | | | 5,739 | | | | 5,578 | | | | 5,853 | | | | 5,855 | |
| Deposit insurance assessments | | | 4,362 | | | | 4,250 | | | | 3,786 | | | | 3,402 | | | | 9,358 | |
| Advertising | | | 1,196 | | | | 656 | | | | 1,120 | | | | 3,197 | | | | 1,096 | |
| Foreclosed property expense | | | 3,813 | | | | 3,538 | | | | 6,292 | | | | 3,692 | | | | 1,314 | |
| Telecommunications | | | 2,494 | | | | 2,200 | | | | 2,203 | | | | 2,219 | | | | 2,226 | |
| Public relations | | | 1,656 | | | | 1,648 | | | | 1,304 | | | | 1,467 | | | | 1,582 | |
| Data processing | | | 1,594 | | | | 1,470 | | | | 1,360 | | | | 1,542 | | | | 1,737 | |
| Computer software | | | 1,900 | | | | 1,704 | | | | 1,759 | | | | 1,782 | | | | 1,907 | |
| Amortization of intangibles | | | 984 | | | | 1,015 | | | | 1,139 | | | | 1,195 | | | | 1,263 | |
| Legal fees | | | 1,313 | | | | 1,328 | | | | 1,885 | | | | 1,570 | | | | 1,419 | |
| Postage and shipping | | | 1,178 | | | | 1,360 | | | | 1,254 | | | | 1,216 | | | | 1,211 | |
| Other miscellaneous expense | | | 14,933 | | | | 15,513 | | | | 17,858 | | | | 14,464 | | | | 14,454 | |
| | | | | | | | | | | | | | | | |
| Total noninterest expense | | $ | 120,016 | | | $ | 120,483 | | | $ | 123,361 | | | $ | 122,672 | | | $ | 124,006 | |
| | | | | | | | | | | | | | | | |
- MORE -
BXS Announces Second Quarter Results
Page 15
July 22, 2010
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | June 30, 2010 | |
| | | Average | | | | | | | Yield/ | |
| (Taxable equivalent basis) | | Balance | | | Interest | | | Rate | |
| ASSETS | | | | | | | | | | | | |
| Loans, loans held for sale, and leases net of unearned income | | $ | 9,763,448 | | | $ | 126,131 | | | | 5.18 | % |
| Held-to-maturity securities: | | | | | | | | | | | | |
| Taxable | | | 939,046 | | | | 9,474 | | | | 4.05 | % |
| Tax-exempt | | | 218,747 | | | | 3,711 | | | | 6.80 | % |
| Available-for-sale securities: | | | | | | | | | | | | |
| Taxable | | | 821,050 | | | | 8,029 | | | | 3.92 | % |
| Tax-exempt | | | 72,440 | | | | 1,281 | | | | 7.09 | % |
| Short-term investments | | | 295,618 | | | | 176 | | | | 0.24 | % |
| | | | | | | | | | | |
| Total interest earning assets and revenue | | | 12,110,349 | | | | 148,802 | | | | 4.93 | % |
| Other assets | | | 1,329,535 | | | | | | | | | |
| Less: allowance for credit losses | | | (216,378 | ) | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,223,506 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand — interest bearing | | $ | 4,635,078 | | | $ | 9,750 | | | | 0.84 | % |
| Savings | | | 770,665 | | | | 915 | | | | 0.48 | % |
| Other time | | | 3,814,314 | | | | 21,536 | | | | 2.26 | % |
| Short-term borrowings | | | 486,350 | | | | 264 | | | | 0.22 | % |
| Junior subordinated debt | | | 160,312 | | | | 2,861 | | | | 7.16 | % |
| Long-term debt | | | 112,731 | | | | 1,506 | | | | 5.36 | % |
| | | | | | | | | | | |
| Total interest bearing liabilities and expense | | | 9,979,450 | | | | 36,832 | | | | 1.48 | % |
| Demand deposits — noninterest bearing | | | 1,855,598 | | | | | | | | | |
| Other liabilities | | | 142,672 | | | | | | | | | |
| | | | | | | | | | | | |
| Total liabilities | | | 11,977,720 | | | | | | | | | |
| Shareholders’ equity | | | 1,245,786 | | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,223,506 | | | | | | | | | |
| | | | | | | | | | | |
| Net interest revenue | | | | | | $ | 111,970 | | | | | |
| | | | | | | | | | | | |
| Net interest margin | | | | | | | | | | | 3.71 | % |
| Net interest rate spread | | | | | | | | | | | 3.45 | % |
| Interest bearing liabilities to interest earning assets | | | | | | | | | | | 82.40 | % |
| | | | | | | | | | | | | |
| Net interest tax equivalent adjustment | | | | | | $ | 2,640 | | | | | |
- MORE -
BXS Announces Second Quarter Results
Page 16
July 22, 2010
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | March 31, 2010 | |
| | | Average | | | | | | | Yield/ | |
| (Taxable equivalent basis) | | Balance | | | Interest | | | Rate | |
| ASSETS | | | | | | | | | | | | |
| Loans, loans held for sale, and leases net of unearned income | | $ | 9,809,884 | | | $ | 128,299 | | | | 5.30 | % |
| Held-to-maturity securities: | | | | | | | | | | | | |
| Taxable | | | 851,525 | | | | 9,525 | | | | 4.54 | % |
| Tax-exempt | | | 215,250 | | | | 3,786 | | | | 7.13 | % |
| Available-for-sale securities: | | | | | | | | | | | | |
| Taxable | | | 859,757 | | | | 8,386 | | | | 3.96 | % |
| Tax-exempt | | | 72,396 | | | | 1,279 | | | | 7.16 | % |
| Short-term investments | | | 170,734 | | | | 103 | | | | 0.24 | % |
| | | | | | | | | | | |
| Total interest earning assets and revenue | | | 11,979,546 | | | | 151,378 | | | | 5.12 | % |
| Other assets | | | 1,340,608 | | | | | | | | | |
| Less: allowance for credit losses | | | (192,983 | ) | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,127,171 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand — interest bearing | | $ | 4,568,045 | | | $ | 9,392 | | | | 0.83 | % |
| Savings | | | 748,342 | | | | 889 | | | | 0.48 | % |
| Other time | | | 3,741,938 | | | | 21,529 | | | | 2.33 | % |
| Short-term borrowings | | | 564,191 | | | | 587 | | | | 0.42 | % |
| Junior subordinated debt | | | 160,312 | | | | 2,855 | | | | 7.22 | % |
| Long-term debt | | | 112,764 | | | | 1,524 | | | | 5.48 | % |
| | | | | | | | | | | |
| Total interest bearing liabilities and expense | | | 9,895,592 | | | | 36,776 | | | | 1.51 | % |
| Demand deposits — noninterest bearing | | | 1,819,945 | | | | | | | | | |
| Other liabilities | | | 146,225 | | | | | | | | | |
| Total liabilities | | | 11,861,762 | | | | | | | | | |
| Shareholders’ equity | | | 1,265,409 | | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,127,171 | | | | | | | | | |
| | | | | | | | | | | |
| Net interest revenue | | | | | | $ | 114,602 | | | | | |
| | | | | | | | | | | | |
| Net interest margin | | | | | | | | | | | 3.88 | % |
| Net interest rate spread | | | | | | | | | | | 3.62 | % |
| Interest bearing liabilities to interest earning assets | | | | | | | | | | | 82.60 | % |
| | | | | | | | | | | | | |
| Net interest tax equivalent adjustment | | | | | | $ | 2,720 | | | | | |
- MORE -
BXS Announces Second Quarter Results
Page 17
July 22, 2010
BancorpSouth, Inc.
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 | | | | | |
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BXS Announces Second Quarter Results
Page 18
July 22, 2010
BancorpSouth, Inc.
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 | | | | | |
- MORE -
BXS Announces Second Quarter Results
Page 19
July 22, 2010
BancorpSouth, Inc.
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 | | | | | |
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BXS Announces Second Quarter Results
Page 20
July 22, 2010
BancorpSouth, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in thousands)
(Unaudited)
Reconciliation of Pre-tax Pre-Provision Earnings (a):
| | | | | | | | | |
| | | Quarter Ended | |
| | | June 30, | |
| | | 2010 | | | 2009 | |
| | | | | | | | | |
| Net income (loss) | | $ | (12,560 | ) | | $ | 33,867 | |
| Plus: Provision for credit losses | | | 62,354 | | | | 17,594 | |
| Income tax expense (benefit) | | | (3,395 | ) | | | 15,951 | |
| | | | | | | |
| Pre-tax Pre-Provision Earnings | | $ | 46,399 | | | $ | 67,412 | |
Reconciliation of Tangible assets and Tangible Shareholders’ Equity to Total Assets and Total Shareholders’ Equity
| | | | | | | | | |
| | | June 30, | |
| | | 2010 | | | 2009 | |
| | | | | | | | | |
| Tangible assets (b): | | | | | | | | |
| Total assets | | $ | 13,421,004 | | | $ | 13,297,819 | |
| Less: Goodwill | | | 270,097 | | | | 270,097 | |
| Other identifiable intangible assets | | | 21,533 | | | | 25,542 | |
| | | | | | | |
| Total tangible assets | | $ | 13,129,374 | | | $ | 13,002,180 | |
| | | | | | | | | |
| Tangible shareholders’ equity (b): | | | | | | | | |
| Total shareholders’ equity | | $ | 1,240,259 | | | $ | 1,274,947 | |
| Less: Goodwill | | | 270,097 | | | | 270,097 | |
| Other identifiable intangible assets | | | 21,533 | | | | 25,542 | |
| | | | | | | |
| Total tangible shareholders’ equity | | $ | 948,629 | | | $ | 979,308 | |
| | | | | | | | | |
| Tangible shareholders’ equity to tangible assets | | | 7.23 | % | | | 7.53 | % |
| | |
| (a) | | BancorpSouth, Inc. utilizes pre-tax pre-provision earnings as an additional measure when evaluating the performance of the Company. Pre-tax pre-provision earnings are defined as net income plus provision for credit losses and income tax expense. The Company believes pre-tax pre-provision earnings to be an important performance indicator for the Company. |
| |
| (b) | | 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 other identifiable intangible assets. Tangible assets are defined by the Company as total assets less goodwill and other identifiable intangible assets. The Company believes the ratio of tangible equity to tangible assets to be an important measure of financial strength of the Company. |
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