EXHIBIT 99.1
| | | |
|
Contact: | | |
| William L. Prater | | Will Fisackerly |
| Treasurer and Chief Financial Officer | | First Vice President and |
| 662/680-2000 | | Director of Investor Relations |
| | | 662/680-2475 |
BancorpSouth Announces Earnings of $0.15 per Diluted Share
for the Second Quarter of 2011
TUPELO, Miss., July 25, 2011/PRNewswire-FirstCall via COMTEX/ — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended June 30, 2011. The Company reported net income of $12.8 million, or $0.15 per diluted share, for the second quarter of 2011 compared with a net loss of $12.6 million, or $0.15 per diluted share, for the second quarter of 2010.
“We are pleased to report significant improvement in our financial results for the second quarter of 2011, compared with both the second quarter of 2010 and the first quarter of 2011,” remarked Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth. “Our stronger earnings are primarily the result of a reduction in our provision for credit losses for the second quarter of 2011 to $32.2 million from $62.4 million for the second quarter of 2010 and $53.5 million for the first quarter of 2011.
“These results reflect improved credit performance, with a 10.6 percent decrease in non-performing loans (“NPLs”) at the end of the second quarter of 2011 from the end of the first quarter of 2011 and a reduction in comparable and sequential quarter net charge-offs of approximately 35 percent. In addition, we experienced a decline in nonaccrual loan formation for the third sequential quarter and a decline in 30 — 89 day past due loans for the fifth sequential quarter. New loans placed on non-accrual status during the quarter represent the lowest level of additions in eight quarters. We are encouraged by this performance, but we remain cautious about short-term prospects for continued improvement given slow economic growth and persistently high unemployment.
“NPLs decreased by $45.2 million to $379.8 million at the end of the second quarter of 2011 compared with the end of the first quarter of 2011. This decline was primarily the result of a $39.7 million decrease in nonaccrual loans. Construction, acquisition and development (“CAD”) nonaccruals declined $24.4 million, or 10.9%, to $200.4 million and represented 60.5 percent of total nonaccrual loans at the end of the second quarter. Gross nonaccrual loan formation declined to $50.4 million for the second quarter of 2011. This represents the third consecutive quarter of lower nonaccrual loan formation after $166.2 million of loans were placed in nonaccrual status in the third quarter of 2010.
“The sequential-quarter decline in NPLs also included a slight decline in loans 90 days or more past due and still accruing to $4.0 million at the end of the second quarter. Restructured loans, still accruing, declined $4.7 million, or 9.5 percent, during the second quarter of 2011.
“Other real estate owned increased $14.8 million to $151.2 million at the end of the second quarter of 2011 compared with the first quarter of 2011. This net increase reflected $38.2 million added through foreclosure, partially offset by sales of other real estate owned of $21.1 million, which increased from sales of $13.5 million for the first quarter of 2011. Write-downs in the value of existing properties were $2.3 million for the second quarter of 2011. The sales of other real estate owned during the second quarter of 2011 resulted in a net gain of $140,000.
“BancorpSouth’s core operations produced solid, consistent results, with pre-tax, pre-provision earnings of $48.0 million for the second quarter of 2011, compared with $46.4 million for the second quarter of 2010 and $47.7 million for the first quarter of 2011.”
Patterson added, “We continue to have solid performance from our community banking group, our insurance group and our other lines of business. While elevated non-performing asset levels, and costs associated with their resolution, are indeed a headwind, we made solid progress in continuing to work through those issues during the second quarter. In addition, earnings for the second quarter and our decision to build capital through a reduction in cash dividends have contributed to strengthening our capital, with our ratio of tangible equity to tangible assets increasing to 7.32 percent at the end of the second quarter of 2011 from 7.23 percent for the second quarter of 2010 and 6.95 percent for the first quarter of 2011.
“Our primary focus going forward is to build on the favorable results achieved for the second quarter by working to resolve credit issues. We are also continuing our work to improve our core operating results by enhancing organic revenue growth and controlling expenses. Recent progress in these efforts has resulted in the hiring of additional mortgage origination staff, and the decision to close 23 branches as a part of our branch optimization project.”
Net Interest Revenue
Net interest revenue was $109.9 million for the second quarter of 2011, an increase of 0.5 percent from $109.3 million for the second quarter of 2010 and an increase of 0.4 percent from $109.4 million for the first quarter of 2011. The fully taxable equivalent net interest margin was 3.71 percent for both the second quarter of 2011 and 2010 and 3.69 percent for the first quarter of 2011.
Asset, Deposit and Loan Activity
Total assets were $13.4 billion at June 30, 2011 and June 30, 2010. Total deposits were $11.3 billion at June 30, 2011, an increase of 0.8 percent from $11.2 billion at June 30, 2010. Loans and leases, net of unearned income, were $9.2 billion at June 30, 2011, a decrease of 4.5 percent from $9.6 billion at June 30, 2010.
The CAD loan portfolio, which decreased $358.6 million, or 25.3 percent, for the 12 months ended June 30, 2011, accounted for 82.9 percent of the decline in net loans and leases over the same period. Excluding the impact of the CAD loan portfolio, net loans and leases declined $73.7 million, or 0.9 percent, for the 12 months ended June 30, 2011.
During the second quarter of 2011, the Company determined that it no longer had the intent to hold until maturity all securities that were previously classified as held-to-maturity. As a result of this determination, all securities are now classified as available-for-sale and are recorded at fair value. Management believes that this decision allows greater flexibility in managing the balance sheet, interest rate risk and liquidity.
Subsequent to this decision, the Company sold $88.9 million in securities, some of which were previously classified as held-to-maturity, resulting in a gain of $9.8 million. At that time, the Company also repaid $75.0 million in long-term Federal Home Loan Bank (“FHLB”) advances, incurring a prepayment penalty of $9.8 million. Management expects that the combination of these two transactions will have a slightly positive impact to net interest income.
The growth in deposits at June 30, 2011 compared with June 30, 2010 resulted from a 4.5 percent increase in interest bearing demand deposits, a 10.5 percent increase in noninterest bearing demand deposits and a 22.7 percent increase in savings deposits. These increases reflect, in part, the Company’s strategic focus on strengthening existing — and building new — core banking relationships to enhance future growth opportunities. In an environment conducive neither to loan growth nor to meaningful investment yields, the Company offset 85.1 percent of these deposit increases through a 13.1 percent decline on certificates of deposit over the 12 months ended June 30, 2011.
Provision for Credit Losses and Allowance for Credit Losses
For the second quarter of 2011, the provision for credit losses was $32.2 million, compared with $62.4 million for the second quarter of 2010 and $53.5 million for the first quarter of 2011. Annualized net charge-offs were 1.42 percent of average loans and leases for the second quarter of 2011, compared with 2.08 percent for the second quarter of 2010 and 2.24 percent for the first quarter of 2011.
NPLs were $379.8 million, or 4.12 percent of net loans and leases, at June 30, 2011 compared with $302.3 million, or 3.13 percent of net loans and leases, at June 30, 2010 and $425.0 million, or 4.61 percent of net loans and leases, at March 31, 2011. The allowance for credit losses was 2.14 percent of net loans and leases at June 30, 2011 compared with 2.08 percent at June 30, 2010 and 2.15 percent at March 31, 2011.
Total NPLs at June 30, 2011 consisted primarily of $331.1 million of loans on nonaccrual status, compared with $370.7 million at March 31, 2011. NPLs at June 30, 2011 also included $4.0 million of loans 90 days or more past due and still accruing, a decrease from $4.8 million at March 31, 2011, and restructured loans still accruing of $44.8 million, a decrease from $49.5 million at March 31, 2011. Loans and leases 30 to 89 days past due decreased 6.9 percent to $47.9 million at June 30, 2011 from $51.5 million at March 31, 2011.
At June 30, 2011, approximately 92 percent of 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 appraisals. Net of these write-downs and reserves, the remaining book balance of impaired loans was 69 percent of the unpaid principal balance. The allowance for credit losses not specifically allocated to impaired loans represented 550 percent of the remaining unimpaired non-accrual loan balance.
At June 30, 2011, $114.8 million of NPLs were residential CAD loans, $91.4 million were other CAD loans, $66.0 million were commercial real estate mortgage loans and $38.7 million were consumer mortgages. NPLs from all other loan types totaled $68.9 million at June 30, 2011. Included in nonaccrual loans reported at June 30, 2011 were $154.2 million of loans, or 46.6 percent of total nonaccrual loans, that were paying as agreed. These loans were generally placed on nonaccrual status because the collateral values were below the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or will be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values. Such loans are generally impaired, with a specific reserve established for the difference in the balance owed and collateral values.
Noninterest Revenue
Noninterest revenue was $75.1 million for the second quarter of 2011, compared with $57.1 million for the second quarter of 2010 and $68.3 million for the first quarter of 2011. These results included value adjustments to mortgage servicing rights (“MSR”) for the second quarter of 2011 and 2010 and the first quarter of 2011 of negative $3.8 million, negative $8.3 million and positive $2.5 million, respectively. In addition, results for the second quarter of 2011 included net securities gains of $10.0 million from the sale of securities.
Excluding the MSR value adjustments, mortgage lending revenue was $5.8 million for the second quarter of 2011, compared with $6.0 million for the second quarter of 2010 and $5.0 million for the first quarter of 2011. Mortgage origination volume for the second quarter of 2011 was $245.3 million, compared with $290.6 million for the second quarter of 2010 and $202.8 million for the first quarter of 2011.
For the second quarter of 2011, credit and debit card fees increased 20.7 percent and 8.9 percent compared with the second quarter of 2010 and the first quarter of 2011, respectively, while service charges declined 12.6 percent and increased 7.7 percent for the same respective periods. Insurance
commission revenue for the second quarter of 2011 increased 5.9 percent compared with the second quarter of 2010, the fifth consecutive comparable quarter increase, and increased 1.7 percent compared with the first quarter of 2011.
Noninterest Expense
Noninterest expense for the second quarter of 2011 was $137.1 million, compared with $120.0 million for the second quarter of 2010 and $130.0 million for the first quarter of 2011. Included in noninterest expense for the second quarter of 2011 was $9.8 million in prepayment expenses related to the early repayment of FHLB advances. Foreclosed property expense decreased 1.3 percent to $3.8 million for the second quarter of 2011 compared with the second quarter of 2010 and 46.8 percent compared with the first quarter of 2011. FDIC insurance expense increased 47.5 percent to $6.4 million for the second quarter of 2011 compared with the second quarter of 2010 and 18.6 percent compared with the first quarter of 2011. Salaries and employee benefits increased 2.9 percent for the second quarter of 2011 compared with the second quarter of 2010 and declined 0.3 percent compared with the first quarter of 2011. Net occupancy expense and equipment expense for the second quarter of 2011 each declined on both a comparable and sequential quarter basis.
Capital Management
BancorpSouth remains a “well capitalized” financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 10.82 percent at June 30, 2011 and total risk based capital of 12.08 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, to be classified as “well capitalized.” The Company’s equity capitalization is 100 percent common stock. BancorpSouth’s ratio of shareholders’ equity to assets increased to 9.33 percent at June 30, 2011, compared with 9.24 percent at June 30, 2010 and 8.94 percent at March 31, 2011. The ratio of tangible shareholders’ equity to tangible assets increased to 7.32 percent at June 30, 2011, compared with 7.23 percent at June 30, 2010 and 6.95 percent at March 31, 2011.
Summary
Patterson concluded, “We are encouraged by the improvement achieved in our credit costs and other credit metrics for the second quarter, especially with regard to the continued decline of new NPL formation. We are focused on continuing this improvement, although, given the weak economic environment, we are appropriately cautious about the near term. Based on our capital level and liquidity position, as well as the progress achieved to date in addressing our credit issues, we remain confident that our credit issues are manageable and that our measures of credit quality will return to more normal levels over time.
“We continue to be pleased with the solid performance of our core operations, despite a multi-year period in which the financial services industry has not experienced significant loan growth. Throughout this period, we have successfully managed our net interest margin, steadily expanded noninterest revenue and controlled expenses. In addition, we have continued to work to deepen relationships with existing clients and to develop new relationships through our deposit accounts, mortgage lending and other products and services.
“Through the performance of our core operations in a challenging environment, we have enhanced our retail franchise and our ability to produce stronger results in a better economic environment. We continue to expect the strength of this franchise, built on outstanding customer service, comprehensive financial products and services and capital level and liquidity, will enable us to enhance BancorpSouth’s long-term shareholder value as well.”
Conference Call
BancorpSouth will conduct a conference call to discuss its second quarter 2011 results tomorrow, July 26, 2011, 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 our ability to resolve remaining credit problems, our ability to improve our core operating results, the impact of classifying all securities as available-for-sale, the impact of using proceeds from the sale of securities to prepay certain long-term FHLB advances, the return of credit quality to more normal levels, our ability to expand long-term shareholder value, the ability of borrowers to repay outstanding loans, and our use of non-GAAP financial measures.
We caution you not to place undue reliance on the forward-looking statements contained in this news release in that actual results could differ materially from those indicated in such forward-looking statements because of a variety of factors. These factors may include, but are not limited to, conditions in the financial markets and economic conditions generally, the soundness of other financial institutions, the availability of capital on favorable terms if and when needed, liquidity risk, the credit risk associated with real estate construction, acquisition and development loans, estimates of costs and values associated with real estate construction, acquisition and development loans in the Company’s loan portfolio, the adequacy of the Company’s allowance for credit losses to cover actual credit losses, governmental regulation and supervision of the Company’s operations, the susceptibility of the Company’s business to local economic conditions, the impact of recent legislation and regulations on service charges for core deposit accounts, changes in interest rates, the impact of monetary policies and economic factors on the Company’s ability to attract deposits or make loans, volatility in capital and credit markets, the impact of hurricanes or other adverse weather events, risks in connection with completed or potential acquisitions, dilution caused by the Company’s issuance of any additional shares of its common stock to raise capital or to acquire other banks, bank holding companies, financial holding companies and insurance agencies, restrictions on the Company’s ability to declare and pay dividends, the Company’s growth strategy, diversification in the types of financial services the Company offers, competition with other financial services companies, interruptions or breaches in security of the Company’s information systems, the failure of certain third part vendors to perform, the Company’s ability to improve its internal controls adequately, any requirement that the Company write down goodwill or other intangible assets, 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 312 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 8
July 25, 2011
BancorpSouth, Inc.
Selected Financial Data
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| (Dollars in thousands, except per share amounts) | | | | | | | | | | | | | | | | |
Earnings Summary: | | | | | | | | | | | | | | | | |
| Net interest revenue | | $ | 109,912 | | | $ | 109,329 | | | $ | 219,349 | | | $ | 221,211 | |
| Provision for credit losses | | | 32,240 | | | | 62,354 | | | | 85,719 | | | | 105,873 | |
| Noninterest revenue | | | 75,144 | | | | 57,086 | | | | 143,455 | | | | 120,418 | |
| Noninterest expense | | | 137,069 | | | | 120,016 | | | | 267,079 | | | | 240,499 | |
| | | | | | | | | | | | | |
| Income (loss) before income taxes | | | 15,747 | | | | (15,955 | ) | | | 10,006 | | | | (4,743 | ) |
| Income tax provision (benefit) | | | 2,921 | | | | (3,395 | ) | | | (2,326 | ) | | | (579 | ) |
| | | | | | | | | | | | | |
| Net income (loss) | | $ | 12,826 | | | | ($12,560 | ) | | $ | 12,332 | | | | ($4,164 | ) |
| | | | | | | | | | | | | |
| Earning (loss) per share: Basic | | $ | 0.15 | | | | ($0.15 | ) | | $ | 0.15 | | | | ($0.05 | ) |
| | | | | | | | | | | | | |
| Diluted | | $ | 0.15 | | | | ($0.15 | ) | | $ | 0.15 | | | | ($0.05 | ) |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Balance sheet data at June 30: | | | | | | | | | | | | | | | | |
| Total assets | | | | | | | | | | $ | 13,367,050 | | | $ | 13,421,004 | |
| Total earning assets | | | | | | | | | | | 12,150,240 | | | | 12,038,779 | |
| Loans and leases, net of unearned income | | | | | | | | | | | 9,214,553 | | | | 9,646,902 | |
| Allowance for credit losses | | | | | | | | | | | 197,627 | | | | 200,744 | |
| Total deposits | | | | | | | | | | | 11,308,463 | | | | 11,220,641 | |
| Common shareholders’ equity | | | | | | | | | | | 1,246,703 | | | | 1,240,259 | |
| Book value per share | | | | | | | | | | | 14.93 | | | | 14.86 | |
| | | | | | | | | | | | | | | | | |
Average balance sheet data: | | | | | | | | | | | | | | | | |
| Total assets | | $ | 13,365,560 | | | $ | 13,223,506 | | | $ | 13,452,183 | | | $ | 13,175,605 | |
| Total earning assets | | | 12,227,751 | | | | 12,110,349 | | | | 12,310,799 | | | | 12,045,309 | |
| Loans and leases, net of unearned interest | | | 9,249,127 | | | | 9,703,253 | | | | 9,274,415 | | | | 9,734,994 | |
| Total deposits | | | 11,355,871 | | | | 11,075,655 | | | | 11,426,363 | | | | 10,977,508 | |
| Common shareholders’ equity | | | 1,222,281 | | | | 1,245,786 | | | | 1,220,851 | | | | 1,255,543 | |
| | | | | | | | | | | | | | | | | |
Non-performing assets at June 30: | | | | | | | | | | | | | | | | |
| Non-accrual loans and leases | | | | | | | | | | $ | 331,076 | | | $ | 263,758 | |
| Loans and leases 90+ days past due, still accruing | | | | | | | | | | | 3,980 | | | | 17,696 | |
| Restructured loans and leases, still accruing | | | | | | | | | | | 44,786 | | | | 20,813 | |
| Other real estate owned | | | | | | | | | | | 151,204 | | | | 67,560 | |
| | | | | | | | | | | | | | | |
| Total non-performing assets | | | | | | | | | | | 531,046 | | | | 369,827 | |
| | | | | | | | | | | | | | | | | |
| Net charge-offs as a percentage of average loans (annualized) | | | 1.42 | % | | | 2.08 | % | | | 1.83 | % | | | 1.67 | % |
| | | | | | | | | | | | | | | | | |
Performance ratios (annualized): | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.38 | % | | | (0.38 | %) | | | 0.18 | % | | | (0.06 | %) |
| Return on common equity | | | 4.21 | % | | | (4.04 | %) | | | 2.04 | % | | | (0.67 | %) |
| Total shareholders’ equity to total assets | | | 9.33 | % | | | 9.24 | % | | | 9.33 | % | | | 9.24 | % |
| Tangible shareholders’ equity to tangible assets | | | 7.32 | % | | | 7.23 | % | | | 7.32 | % | | | 7.23 | % |
| Net interest margin | | | 3.71 | % | | | 3.71 | % | | | 3.70 | % | | | 3.79 | % |
| | | | | | | | | | | | | | | | | |
| Average shares outstanding — basic | | | 83,453,580 | | | | 83,429,120 | | | | 83,451,257 | | | | 83,416,465 | |
| Average shares outstanding — diluted | | | 83,513,889 | | | | 83,429,120 | | | | 83,510,598 | | | | 83,416,465 | |
| Cash dividends per share | | $ | 0.01 | | | $ | 0.22 | | | $ | 0.12 | | | $ | 0.44 | |
| | | | | | | | | | | | | | | | | |
| Tier I capital | | | 10.82% | (1) | | | 10.53 | % | | | 10.82% | (1) | | | 10.53 | % |
| Total capital | | | 12.08% | (1) | | | 11.79 | % | | | 12.08% | (1) | | | 11.79 | % |
| Tier I leverage capital | | | 8.22% | (1) | | | 8.35 | % | | | 8.22% | (1) | | | 8.35 | % |
| | |
| (1) | | Estimated as of earnings release date |
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BXS Announces Second Quarter Results
Page 9
July 25, 2011
BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Jun-11 | | Mar-11 | | Dec-10 | | Sep-10 | | Jun-10 |
| | | |
| | | (Dollars in thousands) |
| | | |
| Assets | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 166,761 | | | $ | 146,989 | | | $ | 99,916 | | | $ | 128,160 | | | $ | 370,499 | |
| Interest bearing deposits with other banks | | | 304,344 | | | | 102,312 | | | | 172,170 | | | | 211,189 | | | | 111,040 | |
| Held-to-maturity securities, at amortized cost | | | — | | | | 1,667,203 | | | | 1,613,019 | | | | 1,357,888 | | | | 1,147,157 | |
| Available-for-sale securities, at fair value | | | 2,560,824 | | | | 1,145,463 | | | | 1,096,062 | | | | 915,877 | | | | 962,692 | |
| Federal funds sold and securities purchased under agreement to resell | | | — | | | | 150,000 | | | | 150,000 | | | | 325,000 | | | | 75,000 | |
| Loans and leases | | | 9,255,879 | | | | 9,255,609 | | | | 9,376,351 | | | | 9,556,962 | | | | 9,691,623 | |
| Less: Unearned income | | | 41,326 | | | | 41,773 | | | | 43,244 | | | | 42,033 | | | | 44,721 | |
| Allowance for credit losses | | | 197,627 | | | | 198,333 | | | | 196,913 | | | | 205,081 | | | | 200,744 | |
| | | |
| Net loans and leases | | | 9,016,926 | | | | 9,015,503 | | | | 9,136,194 | | | | 9,309,848 | | | | 9,446,158 | |
| Loans held for sale | | | 70,519 | | | | 56,876 | | | | 93,697 | | | | 125,815 | | | | 95,987 | |
| Premises and equipment, net | | | 328,075 | | | | 329,862 | | | | 332,890 | | | | 335,618 | | | | 336,645 | |
| Accrued interest receivable | | | 55,525 | | | | 61,105 | | | | 61,025 | | | | 63,797 | | | | 63,862 | |
| Goodwill | | | 271,297 | | | | 271,297 | | | | 270,097 | | | | 270,097 | | | | 270,097 | |
| Bank owned life insurance | | | 197,028 | | | | 194,988 | | | | 194,064 | | | | 192,459 | | | | 190,828 | |
| Other real estate owned | | | 151,204 | | | | 136,412 | | | | 133,412 | | | | 82,647 | | | | 67,560 | |
| Other assets | | | 244,547 | | | | 269,228 | | | | 262,464 | | | | 264,621 | | | | 283,479 | |
| | | |
| Total Assets | | $ | 13,367,050 | | | $ | 13,547,238 | | | $ | 13,615,010 | | | $ | 13,583,016 | | | $ | 13,421,004 | |
| | | |
| Liabilities | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Demand: Noninterest bearing | | $ | 2,096,655 | | | $ | 2,027,990 | | | $ | 2,060,145 | | | $ | 1,967,635 | | | $ | 1,897,977 | |
| Interest bearing | | | 4,939,553 | | | | 5,023,073 | | | | 4,931,518 | | | | 4,623,103 | | | | 4,725,457 | |
| Savings | | | 944,993 | | | | 932,574 | | | | 863,034 | | | | 801,153 | | | | 770,112 | |
| Other time | | | 3,327,262 | | | | 3,480,477 | | | | 3,635,324 | | | | 3,804,973 | | | | 3,827,095 | |
| | | |
| Total deposits | | | 11,308,463 | | | | 11,464,114 | | | | 11,490,021 | | | | 11,196,864 | | | | 11,220,641 | |
| Federal funds purchased and securities sold under agreement to repurchase | | | 426,097 | | | | 421,782 | | | | 440,593 | | | | 501,175 | | | | 481,109 | |
| Short-term Federal Home Loan Bank borrowings and other short-term borrowing | | | 703 | | | | 2,715 | | | | 2,727 | | | | 152,738 | | | | 3,500 | |
| Accrued interest payable | | | 11,348 | | | | 13,238 | | | | 14,336 | | | | 16,574 | | | | 17,508 | |
| Junior subordinated debt securities | | | 160,312 | | | | 160,312 | | | | 160,312 | | | | 160,312 | | | | 160,312 | |
| Long-term Federal Home Loan Bank borrowings | | | 35,000 | | | | 110,000 | | | | 110,000 | | | | 110,000 | | | | 110,749 | |
| Other liabilities | | | 178,424 | | | | 164,016 | | | | 174,777 | | | | 209,648 | | | | 186,926 | |
| | | |
| Total Liabilities | | | 12,120,347 | | | | 12,336,177 | | | | 12,392,766 | | | | 12,347,311 | | | | 12,180,745 | |
| Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | |
| Common stock | | | 208,722 | | | | 208,704 | | | | 208,704 | | | | 208,704 | | | | 208,704 | |
| Capital surplus | | | 226,362 | | | | 225,597 | | | | 224,976 | | | | 224,170 | | | | 223,922 | |
| Accumulated other comprehensive income (loss) | | | 6,289 | | | | (16,579 | ) | | | (14,453 | ) | | | (2,705 | ) | | | (5,008 | ) |
| Retained earnings | | | 805,330 | | | | 793,339 | | | | 803,017 | | | | 805,536 | | | | 812,641 | |
| | | |
| Total Shareholders’ Equity | | | 1,246,703 | | | | 1,211,061 | | | | 1,222,244 | | | | 1,235,705 | | | | 1,240,259 | |
| | | |
| Total Liabilities & Shareholders’ Equity | | $ | 13,367,050 | | | $ | 13,547,238 | | | $ | 13,615,010 | | | $ | 13,583,016 | | | $ | 13,421,004 | |
| | | |
-MORE-
BXS Announces Second Quarter Results
Page 10
July 25, 2011
BancorpSouth, Inc.
Consolidated Average Balance Sheets
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Jun-11 | | Mar-11 | | Dec-10 | | Sep-10 | | Jun-10 |
| | | |
| | | (Dollars in thousands) |
| Assets | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 151,194 | | | $ | 156,329 | | | $ | 176,979 | | | $ | 202,147 | | | $ | 179,482 | |
| Interest bearing deposits with other banks | | | 187,901 | | | | 167,271 | | | | 282,396 | | | | 75,943 | | | | 26,252 | |
| Held-to-maturity securities, at amortized cost | | | 1,097,562 | | | | 1,653,284 | | | | 1,436,222 | | | | 1,223,676 | | | | 1,157,793 | |
| Available-for-sale securities, at fair value | | | 1,609,720 | | | | 1,085,131 | | | | 996,006 | | | | 917,677 | | | | 893,490 | |
| Federal funds sold and securities purchased under agreement to resell | | | 38,736 | | | | 150,000 | | | | 209,511 | | | | 282,228 | | | | 269,365 | |
| Loans and leases | | | 9,291,434 | | | | 9,342,939 | | | | 9,461,161 | | | | 9,645,252 | | | | 9,749,954 | |
| Less: Unearned income | | | 42,307 | | | | 42,954 | | | | 42,474 | | | | 44,110 | | | | 46,701 | |
| Allowance for credit losses | | | 212,968 | | | | 218,107 | | | | 215,278 | | | | 227,201 | | | | 216,378 | |
| | | |
| Net loans and leases | | | 9,036,159 | | | | 9,081,878 | | | | 9,203,409 | | | | 9,373,941 | | | | 9,486,875 | |
| Loans held for sale | | | 44,704 | | | | 39,098 | | | | 91,262 | | | | 81,004 | | | | 60,195 | |
| Premises and equipment, net | | | 328,829 | | | | 330,920 | | | | 333,516 | | | | 336,038 | | | | 338,255 | |
| Accrued interest receivable | | | 54,570 | | | | 58,450 | | | | 58,591 | | | | 61,753 | | | | 62,360 | |
| Goodwill | | | 271,297 | | | | 270,510 | | | | 270,097 | | | | 270,097 | | | | 270,097 | |
| Bank owned life insurance | | | 14,189 | | | | 13,217 | | | | 9,836 | | | | 12,394 | | | | 11,200 | |
| Other assets | | | 530,699 | | | | 533,675 | | | | 491,213 | | | | 467,984 | | | | 468,142 | |
| | | |
| Total Assets | | $ | 13,365,560 | | | | 13,539,763 | | | | 13,559,038 | | | | 13,304,882 | | | | 13,223,506 | |
| | | |
| Liabilities | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Demand: Noninterest bearing | | $ | 2,018,197 | | | | 1,893,720 | | | | 1,975,318 | | | | 1,911,125 | | | | 1,855,598 | |
| Interest bearing | | | 4,977,764 | | | | 5,153,063 | | | | 4,740,734 | | | | 4,651,166 | | | | 4,635,078 | |
| Savings | | | 941,169 | | | | 897,312 | | | | 831,805 | | | | 786,267 | | | | 770,665 | |
| Other time | | | 3,418,741 | | | | 3,553,543 | | | | 3,745,046 | | | | 3,829,068 | | | | 3,814,314 | |
| | | |
| Total deposits | | | 11,355,871 | | | | 11,497,638 | | | | 11,292,903 | | | | 11,177,626 | | | | 11,075,655 | |
| Federal funds purchased and securities sold under agreement to repurchase | | | 423,949 | | | | 430,930 | | | | 475,760 | | | | 476,853 | | | | 483,608 | |
| Short-term Federal Home Loan Bank borrowings and other short-term borrowing | | | 1,641 | | | | 2,719 | | | | 147,839 | | | | 6,426 | | | | 2,302 | |
| Accrued interest payable | | | 13,558 | | | | 14,873 | | | | 16,811 | | | | 18,239 | | | | 19,685 | |
| Junior subordinated debt securities | | | 160,312 | | | | 160,312 | | | | 160,312 | | | | 160,312 | | | | 160,312 | |
| Long-term Federal Home Loan Bank borrowings | | | 89,395 | | | | 110,000 | | | | 110,000 | | | | 110,734 | | | | 112,731 | |
| Other liabilities | | | 98,553 | | | | 103,892 | | | | 129,899 | | | | 125,546 | | | | 123,427 | |
| | | |
| Total Liabilities | | | 12,143,279 | | | | 12,320,364 | | | | 12,333,524 | | | | 12,075,736 | | | | 11,977,720 | |
| Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | |
| Common stock | | | 208,715 | | | | 208,704 | | | | 208,704 | | | | 208,704 | | | | 208,684 | |
| Capital surplus | | | 225,912 | | | | 225,162 | | | | 224,357 | | | | 224,168 | | | | 223,893 | |
| Accumulated other comprehensive income (loss) | | | (10,040 | ) | | | (14,346 | ) | | | (3,331 | ) | | | (4,983 | ) | | | (10,583 | ) |
| Retained earnings | | | 797,694 | | | | 799,879 | | | | 795,784 | | | | 801,257 | | | | 823,792 | |
| | | |
| Total Shareholders’ Equity | | | 1,222,281 | | | | 1,219,399 | | | | 1,225,514 | | | | 1,229,146 | | | | 1,245,786 | |
| | | |
| Total Liabilities & Shareholders’ Equity | | $ | 13,365,560 | | | $ | 13,539,763 | | | $ | 13,559,038 | | | $ | 13,304,882 | | | $ | 13,223,506 | |
| | | |
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BXS Announces Second Quarter Results
Page 11
July 25, 2011
BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | | | Year To Date | |
| | | Jun-11 | | | Mar-11 | | | Dec-10 | | | Sep-10 | | | Jun-10 | | | Jun-11 | | | Jun-10 | |
| INTEREST REVENUE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans and leases | | $ | 116,892 | | | $ | 117,358 | | | $ | 121,672 | | | $ | 123,533 | | | $ | 124,621 | | | $ | 234,250 | | | $ | 251,577 | |
| Deposits with other banks | | | 124 | | | | 122 | | | | 222 | | | | 79 | | | | 33 | | | | 246 | | | | 54 | |
| Federal funds sold and securities purchased under agreement to resell | | | 35 | | | | 131 | | | | 168 | | | | 213 | | | | 143 | | | | 166 | | | | 225 | |
| Held-to-maturity securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 5,066 | | | | 8,014 | | | | 8,490 | | | | 9,010 | | | | 9,363 | | | | 13,080 | | | | 18,778 | |
| Tax-exempt | | | 2,291 | | | | 3,347 | | | | 2,952 | | | | 2,584 | | | | 2,412 | | | | 5,638 | | | | 4,873 | |
| Available-for-sale securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Taxable | | | 10,451 | | | | 8,585 | | | | 7,836 | | | | 7,782 | | | | 8,030 | | | | 19,036 | | | | 16,415 | |
| Tax-exempt | | | 1,871 | | | | 824 | | | | 815 | | | | 795 | | | | 833 | | | | 2,695 | | | | 1,665 | |
| Loans held for sale | | | 505 | | | | 447 | | | | 902 | | | | 889 | | | | 727 | | | | 952 | | | | 1,233 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total interest revenue | | | 137,235 | | | | 138,828 | | | | 143,057 | | | | 144,885 | | | | 146,162 | | | | 276,063 | | | | 294,820 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| INTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing demand | | | 6,039 | | | | 6,546 | | | | 7,462 | | | | 8,582 | | | | 9,751 | | | | 12,585 | | | | 19,143 | |
| Savings | | | 810 | | | | 826 | | | | 891 | | | | 881 | | | | 915 | | | | 1,636 | | | | 1,804 | |
| Other time | | | 16,285 | | | | 17,483 | | | | 19,827 | | | | 21,108 | | | | 21,535 | | | | 33,768 | | | | 43,064 | |
| Federal funds purchased and securities sold under agreement to repurchase | | | 135 | | | | 152 | | | | 189 | | | | 209 | | | | 215 | | | | 287 | | | | 443 | |
| FHLB borrowings | | | 1,194 | | | | 1,523 | | | | 1,569 | | | | 1,543 | | | | 1,553 | | | | 2,717 | | | | 3,433 | |
| Junior subordinated debt | | | 2,860 | | | | 2,859 | | | | 2,864 | | | | 2,880 | | | | 2,862 | | | | 5,719 | | | | 5,717 | |
| Other | | | — | | | | 2 | | | | 2 | | | | 4 | | | | 2 | | | | 2 | | | | 5 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total interest expense | | | 27,323 | | | | 29,391 | | | | 32,804 | | | | 35,207 | | | | 36,833 | | | | 56,714 | | | | 73,609 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net interest revenue | | | 109,912 | | | | 109,437 | | | | 110,253 | | | | 109,678 | | | | 109,329 | | | | 219,349 | | | | 221,211 | |
| Provision for credit losses | | | 32,240 | | | | 53,479 | | | | 43,293 | | | | 54,850 | | | | 62,354 | | | | 85,719 | | | | 105,873 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net interest revenue, after provision for credit losses | | | 77,672 | | | | 55,958 | | | | 66,960 | | | | 54,828 | | | | 46,975 | | | | 133,630 | | | | 115,338 | |
| | | | | | | | | | | | | | | | | | | | | | |
| NONINTEREST REVENUE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Mortgage lending | | | 2,003 | | | | 7,581 | | | | 18,126 | | | | 8,898 | | | | (2,304 | ) | | | 9,584 | | | | 2,721 | |
| Credit card, debit card and merchant fees | | | 11,263 | | | | 10,346 | | | | 9,951 | | | | 9,569 | | | | 9,333 | | | | 21,609 | | | | 18,143 | |
| Service charges | | | 16,556 | | | | 15,368 | | | | 16,854 | | | | 18,621 | | | | 18,953 | | | | 31,924 | | | | 35,215 | |
| Trust income | | | 2,850 | | | | 3,134 | | | | 3,072 | | | | 2,783 | | | | 2,707 | | | | 5,984 | | | | 5,294 | |
| Security gains (losses), net | | | 10,045 | | | | 17 | | | | (470 | ) | | | 2,327 | | | | (585 | ) | | | 10,062 | | | | 712 | |
| Insurance commissions | | | 22,941 | | | | 22,549 | | | | 18,013 | | | | 20,825 | | | | 21,666 | | | | 45,490 | | | | 43,334 | |
| Other | | | 9,486 | | | | 9,316 | | | | 8,428 | | | | 6,729 | | | | 7,316 | | | | 18,802 | | | | 14,999 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total noninterest revenue | | | 75,144 | | | | 68,311 | | | | 73,974 | | | | 69,752 | | | | 57,086 | | | | 143,455 | | | | 120,418 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NONINTEREST EXPENSES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 70,142 | | | | 70,375 | | | | 65,980 | | | | 68,232 | | | | 68,189 | | | | 140,517 | | | | 137,476 | |
| Occupancy, net of rental income | | | 10,232 | | | | 10,671 | | | | 10,668 | | | | 11,038 | | | | 10,527 | | | | 20,903 | | | | 21,302 | |
| Equipment | | | 5,595 | | | | 5,658 | | | | 5,459 | | | | 5,523 | | | | 5,877 | | | | 11,253 | | | | 11,616 | |
| Deposit insurance assessments | | | 6,436 | | | | 5,425 | | | | 5,895 | | | | 4,752 | | | | 4,362 | | | | 11,861 | | | | 8,612 | |
| Prepayment penalty on FHLB borrowings | | | 9,778 | | | | — | | | | — | | | | — | | | | — | | | | 9,778 | | | | — | |
| Other | | | 34,886 | | | | 37,881 | | | | 35,445 | | | | 33,542 | | | | 31,061 | | | | 72,767 | | | | 61,493 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total noninterest expenses | | | 137,069 | | | | 130,010 | | | | 123,447 | | | | 123,087 | | | | 120,016 | | | | 267,079 | | | | 240,499 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) before income taxes | | | 15,747 | | | | (5,741 | ) | | | 17,487 | | | | 1,493 | | | | (15,955 | ) | | | 10,006 | | | | (4,743 | ) |
| Income tax expense (benefit) | | | 2,921 | | | | (5,247 | ) | | | 1,641 | | | | (9,767 | ) | | | (3,395 | ) | | | (2,326 | ) | | | (579 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | 12,826 | | | | ($494 | ) | | $ | 15,846 | | | $ | 11,260 | | | | ($12,560 | ) | | $ | 12,332 | | | | ($4,164 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income (loss) per share: Basic | | $ | 0.15 | | | | ($0.01 | ) | | $ | 0.19 | | | $ | 0.13 | | | | ($0.15 | ) | | $ | 0.15 | | | | ($0.05 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| Diluted | | $ | 0.15 | | | | ($0.01 | ) | | $ | 0.19 | | | $ | 0.13 | | | | ($0.15 | ) | | $ | 0.15 | | | | ($0.05 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
-MORE-
BXS Announces Second Quarter Results
Page 12
July 25, 2011
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Jun-11 | | | Mar-11 | | | Dec-10 | | | Sep-10 | | | Jun-10 | |
| LOAN AND LEASE PORTFOLIO: | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 1,526,686 | | | $ | 1,484,223 | | | $ | 1,491,183 | | | $ | 1,438,415 | | | $ | 1,483,335 | |
| Real estate | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 1,971,499 | | | | 1,958,367 | | | | 1,951,563 | | | | 1,972,483 | | | | 1,981,475 | |
| Home equity | | | 531,787 | | | | 531,406 | | | | 543,272 | | | | 552,095 | | | | 555,281 | |
| Agricultural | | | 255,310 | | | | 250,393 | | | | 252,292 | | | | 262,083 | | | | 260,489 | |
| Commercial and industrial-owner occupied | | | 1,366,734 | | | | 1,316,824 | | | | 1,331,473 | | | | 1,375,466 | | | | 1,407,704 | |
| Construction, acquisition and development | | | 1,060,675 | | | | 1,117,335 | | | | 1,174,743 | | | | 1,335,836 | | | | 1,419,303 | |
| Commercial | | | 1,764,648 | | | | 1,831,226 | | | | 1,816,951 | | | | 1,810,626 | | | | 1,794,644 | |
| Credit cards | | | 101,955 | | | | 100,732 | | | | 106,345 | | | | 102,672 | | | | 102,784 | |
| All other | | | 635,259 | | | | 623,330 | | | | 665,285 | | | | 665,253 | | | | 641,888 | |
| | | | | | | | | | | | | | | | |
| Total loans | | $ | 9,214,553 | | | $ | 9,213,836 | | | $ | 9,333,107 | | | $ | 9,514,929 | | | $ | 9,646,903 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| ALLOWANCE FOR CREDIT LOSSES: | | | | | | | | | | | | | | | | | | | | |
| Balance, beginning of period | | $ | 198,333 | | | $ | 196,913 | | | $ | 205,081 | | | $ | 200,744 | | | $ | 188,884 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans and leases charged off: | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | | (5,556 | ) | | | (8,809 | ) | | | (1,782 | ) | | | (2,822 | ) | | | (5,106 | ) |
| Real estate | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | (1,629 | ) | | | (3,260 | ) | | | (5,291 | ) | | | (3,398 | ) | | | (2,993 | ) |
| Home equity | | | (1,391 | ) | | | (1,082 | ) | | | (1,138 | ) | | | (1,792 | ) | | | (602 | ) |
| Agricultural | | | (373 | ) | | | (592 | ) | | | (487 | ) | | | (33 | ) | | | (473 | ) |
| Commercial and industrial-owner occupied | | | (3,228 | ) | | | (1,716 | ) | | | (1,659 | ) | | | (1,231 | ) | | | (3,845 | ) |
| Construction, acquisition and development | | | (16,783 | ) | | | (32,343 | ) | | | (34,989 | ) | | | (38,517 | ) | | | (33,321 | ) |
| Commercial | | | (1,597 | ) | | | (4,514 | ) | | | (6,327 | ) | | | (2,887 | ) | | | (2,593 | ) |
| Credit cards | | | (725 | ) | | | (881 | ) | | | (990 | ) | | | (1,046 | ) | | | (1,363 | ) |
| All other | | | (4,971 | ) | | | (553 | ) | | | (2,093 | ) | | | (798 | ) | | | (2,067 | ) |
| | | | | | | | | | | | | | | | |
| Total loans charged off | | | (36,253 | ) | | | (53,750 | ) | | | (54,756 | ) | | | (52,524 | ) | | | (52,363 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Recoveries: | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | | 589 | | | | 184 | | | | 707 | | | | 318 | | | | 242 | |
| Real estate | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 220 | | | | 143 | | | | 423 | | | | 143 | | | | 818 | |
| Home equity | | | 46 | | | | 45 | | | | 60 | | | | 23 | | | | 43 | |
| Agricultural | | | 45 | | | | 2 | | | | 4 | | | | 8 | | | | — | |
| Commercial and industrial-owner occupied | | | 21 | | | | 173 | | | | 195 | | | | 154 | | | | 44 | |
| Construction, acquisition and development | | | 1,493 | | | | 564 | | | | 776 | | | | 663 | | | | 211 | |
| Commercial | | | 392 | | | | 13 | | | | 707 | | | | 98 | | | | 27 | |
| Credit cards | | | 239 | | | | 255 | | | | 143 | | | | 317 | | | | 219 | |
| All other | | | 262 | | | | 312 | | | | 280 | | | | 287 | | | | 265 | |
| | | | | | | | | | | | | | | | |
| Total recoveries | | | 3,307 | | | | 1,691 | | | | 3,295 | | | | 2,011 | | | | 1,869 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs | | | (32,946 | ) | | | (52,059 | ) | | | (51,461 | ) | | | (50,513 | ) | | | (50,494 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Provision charged to operating expense | | | 32,240 | | | | 53,479 | | | | 43,293 | | | | 54,850 | | | | 62,354 | |
| Other, net | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| Balance, end of period | | $ | 197,627 | | | $ | 198,333 | | | $ | 196,913 | | | $ | 205,081 | | | $ | 200,744 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Average loans for period | | $ | 9,249,127 | | | $ | 9,300,029 | | | $ | 9,418,687 | | | $ | 9,601,142 | | | $ | 9,703,253 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Ratios: | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs to average loans (annualized) | | | 1.42 | % | | | 2.24 | % | | | 2.19 | % | | | 2.10 | % | | | 2.08 | % |
| | | | | | | | | | | | | | | | |
-MORE-
BXS Announces Second Quarter Results
Page 13
July 25, 2011
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Jun-11 | | | Mar-11 | | | Dec-10 | | | Sep-10 | | | Jun-10 | |
NON-PERFORMING ASSETS | | | | | | | | | | | | | | | | | | | | |
| NON-PERFORMING LOANS AND LEASES: | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual Loans and Leases | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 9,337 | | | $ | 14,655 | | | $ | 13,075 | | | $ | 12,339 | | | $ | 6,280 | |
| Real estate | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 34,174 | | | | 36,025 | | | | 34,021 | | | | 25,561 | | | | 22,618 | |
| Home equity | | | 1,232 | | | | 1,543 | | | | 811 | | | | 1,361 | | | | 1,565 | |
| Agricultural | | | 8,526 | | | | 7,597 | | | | 7,589 | | | | 4,986 | | | | 3,972 | |
| Commercial and industrial-owner occupied | | | 26,387 | | | | 24,638 | | | | 20,338 | | | | 15,004 | | | | 12,061 | |
| Construction, acquisition and development | | | 200,434 | | | | 224,847 | | | | 211,547 | | | | 231,987 | | | | 174,725 | |
| Commercial | | | 48,571 | | | | 58,945 | | | | 57,766 | | | | 51,590 | | | | 38,921 | |
| Credit cards | | | 546 | | | | 617 | | | | 720 | | | | 724 | | | | 726 | |
| All other | | | 1,869 | | | | 1,859 | | | | 1,632 | | | | 3,629 | | | | 2,890 | |
| | | | | | | | | | | | | | | | |
| Total nonaccrual loans and leases | | | 331,076 | | | | 370,726 | | | | 347,499 | | | | 347,181 | | | | 263,758 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans and Leases 90+ Days Past Due, Still Accruing: | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | | 118 | | | | 501 | | | | 675 | | | | 1,571 | | | | 7,093 | |
| Real estate | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 2,482 | | | | 3,152 | | | | 6,521 | | | | 6,241 | | | | 4,754 | |
| Home equity | | | 242 | | | | 139 | | | | 173 | | | | 146 | | | | — | |
| Agricultural | | | — | | | | 7 | | | | 123 | | | | 330 | | | | — | |
| Commercial and industrial-owner occupied | | | — | | | | 255 | | | | 20 | | | | 192 | | | | 733 | |
| Construction, acquisition and development | | | 432 | | | | 19 | | | | 197 | | | | 526 | | | | 1,490 | |
| Commercial | | | 19 | | | | 7 | | | | — | | | | 115 | | | | 3,068 | |
| Credit cards | | | 299 | | | | 240 | | | | 330 | | | | 396 | | | | 228 | |
| All other | | | 388 | | | | 509 | | | | 461 | | | | 393 | | | | 330 | |
| | | | | | | | | | | | | | | | |
| Total loans and leases 90+ past due, still accruing | | | 3,980 | | | | 4,829 | | | | 8,500 | | | | 9,910 | | | | 17,696 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Restructured Loans and Leases, Still Accruing | | | 44,786 | | | | 49,472 | | | | 38,376 | | | | 52,325 | | | | 20,813 | |
| | | | | | | | | | | | | | | | |
| Total non-performing loans and leases | | | 379,842 | | | | 425,027 | | | | 394,375 | | | | 409,416 | | | | 302,267 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| OTHER REAL ESTATE OWNED: | | | 151,204 | | | | 136,412 | | | | 133,412 | | | | 82,647 | | | | 67,560 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Non-performing Assets | | $ | 531,046 | | | $ | 561,439 | | | $ | 527,787 | | | $ | 492,063 | | | $ | 369,827 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Additions to Nonaccrual Loans and Leases During the Quarter | | $ | 50,427 | | | $ | 111,241 | | | $ | 131,140 | | | $ | 166,171 | | | $ | 136,267 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans and Leases 30-89 Days Past Due, Still Accruing: | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 7,903 | | | $ | 8,407 | | | $ | 13,654 | | | $ | 10,581 | | | $ | 10,081 | |
| Real estate | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 18,621 | | | | 17,136 | | | | 19,147 | | | | 22,490 | | | | 30,286 | |
| Home equity | | | 2,916 | | | | 2,492 | | | | 1,906 | | | | 3,088 | | | | 2,664 | |
| Agricultural | | | 2,901 | | | | 818 | | | | 1,122 | | | | 1,101 | | | | 2,312 | |
| Commercial and industrial-owner occupied | | | 2,786 | | | | 4,369 | | | | 10,183 | | | | 16,385 | | | | 20,975 | |
| Construction, acquisition and development | | | 4,939 | | | | 8,047 | | | | 6,758 | | | | 11,538 | | | | 50,759 | |
| Commercial | | | 4,091 | | | | 7,090 | | | | 3,823 | | | | 4,657 | | | | 8,084 | |
| Credit cards | | | 785 | | | | 969 | | | | 1,023 | | | | 799 | | | | 1,220 | |
| All other | | | 3,005 | | | | 2,192 | | | | 2,766 | | | | 3,143 | | | | 4,472 | |
| | | | | | | | | | | | | | | | |
| Total Loans and Leases 30-89 days past due, still accruing | | $ | 47,947 | | | $ | 51,520 | | | $ | 60,382 | | | $ | 73,782 | | | $ | 130,853 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Credit Quality Ratios: | | | | | | | | | | | | | | | | | | | | |
| Provision for credit losses to average loans and leases (annualized) | | | 1.39 | % | | | 2.30 | % | | | 1.84 | % | | | 2.29 | % | | | 2.57 | % |
| Allowance for credit losses to net loans and leases | | | 2.14 | % | | | 2.15 | % | | | 2.11 | % | | | 2.16 | % | | | 2.08 | % |
| Allowance for credit losses to non-performing assets | | | 37.21 | % | | | 35.33 | % | | | 37.31 | % | | | 41.68 | % | | | 54.28 | % |
| Allowance for credit losses to non-performing loans and leases | | | 52.03 | % | | | 46.66 | % | | | 49.93 | % | | | 50.09 | % | | | 66.41 | % |
| Non-performing loans and leases to net loans and leases | | | 4.12 | % | | | 4.61 | % | | | 4.23 | % | | | 4.30 | % | | | 3.13 | % |
| Non-performing assets to net loans and leases | | | 5.76 | % | | | 6.09 | % | | | 5.65 | % | | | 5.17 | % | | | 3.83 | % |
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BXS Announces Second Quarter Results
Page 14
July 25, 2011
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Jun-11 | | | Mar-11 | | | Dec-10 | | | Sep-10 | | | Jun-10 | |
REAL ESTATE CONSTRUCTION, ACQUISITION AND DEVELOPMENT (“CAD”) PORTFOLIO: | | | | | | | | | | | | | | | | | | | | |
| Outstanding Balance | | | | | | | | | | | | | | | | | | | | |
| Multi-family construction | | $ | 19,116 | | | $ | 21,051 | | | $ | 27,992 | | | $ | 28,540 | | | $ | 22,091 | |
| One-to-four family construction | | | 198,809 | | | | 212,435 | | | | 218,554 | | | | 239,455 | | | | 267,341 | |
| Recreation and all other loans | | | 66,366 | | | | 63,686 | | | | 48,375 | | | | 45,085 | | | | 44,175 | |
| Commercial construction | | | 160,834 | | | | 155,402 | | | | 173,557 | | | | 239,099 | | | | 245,700 | |
| Commercial acquisition and development | | | 222,460 | | | | 244,950 | | | | 250,658 | | | | 260,787 | | | | 270,413 | |
| Residential acquisition and development | | | 393,090 | | | | 419,811 | | | | 455,607 | | | | 522,870 | | | | 569,583 | |
| | | | | | | | | | | | | | | | |
| Total outstanding balance | | $ | 1,060,675 | | | $ | 1,117,335 | | | $ | 1,174,743 | | | $ | 1,335,836 | | | $ | 1,419,303 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual CAD Loans | | | | | | | | | | | | | | | | | | | | |
| Multi-family construction | | $ | 9,174 | | | $ | 8,352 | | | $ | 12,517 | | | $ | 10,668 | | | $ | 11,705 | |
| One-to-four family construction | | | 24,537 | | | | 33,570 | | | | 23,794 | | | | 27,476 | | | | 21,013 | |
| Recreation and all other loans | | | 774 | | | | 708 | | | | 481 | | | | 1,020 | | | | 685 | |
| Commercial construction | | | 16,618 | | | | 20,889 | | | | 34,710 | | | | 28,712 | | | | 24,723 | |
| Commercial acquisition and development | | | 37,207 | | | | 47,200 | | | | 29,658 | | | | 34,438 | | | | 15,558 | |
| Residential acquisition and development | | | 112,124 | | | | 114,128 | | | | 110,387 | | | | 129,673 | | | | 101,041 | |
| | | | | | | | | | | | | | | | |
| Total nonaccrual CAD loans | | | 200,434 | | | | 224,847 | | | | 211,547 | | | | 231,987 | | | | 174,725 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| CAD Loans 90+ Days Past Due, Still Accruing: | | | | | | | | | | | | | | | | | | | | |
| Multi-family construction | | | — | | | | — | | | | — | | | | — | | | | — | |
| One-to-four family construction | | | — | | | | — | | | | — | | | | — | | | | 365 | |
| Recreation and all other loans | | | 2 | | | | 2 | | | | — | | | | — | | | | — | |
| Commercial construction | | | — | | | | — | | | | 195 | | | | — | | | | 141 | |
| Commercial acquisition and development | | | — | | | | — | | | | — | | | | 150 | | | | 77 | |
| Residential acquisition and development | | | 430 | | | | 17 | | | | 2 | | | | 376 | | | | 907 | |
| | | | | | | | | | | | | | | | |
| Total CAD loans 90+ past due, still accruing | | | 432 | | | | 19 | | | | 197 | | | | 526 | | | | 1,490 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Restructured CAD Loans, Still Accruing | | | | | | | | | | | | | | | | | | | | |
| Multi-family construction | | | — | | | | — | | | | — | | | | — | | | | — | |
| One-to-four family construction | | | 1,697 | | | | 113 | | | | 63 | | | | 417 | | | | 1,072 | |
| Recreation and all other loans | | | 24 | | | | — | | | | — | | | | — | | | | — | |
| Commercial construction | | | — | | | | — | | | | — | | | | 2,244 | | | | — | |
| Commercial acquisition and development | | | 1,415 | | | | 834 | | | | 604 | | | | 1,735 | | | | 460 | |
| Residential acquisition and development | | | 2,274 | | | | 3,408 | | | | 1,495 | | | | 7,290 | | | | 946 | |
| | | | | | | | | | | | | | | | |
| Total restructured CAD loans, still accruing | | | 5,410 | | | | 4,355 | | | | 2,162 | | | | 11,686 | | | | 2,478 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Non-performing CAD loans | | $ | 206,276 | | | $ | 229,221 | | | $ | 213,906 | | | $ | 244,199 | | | $ | 178,693 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| CAD NPL as a % of Outstanding CAD Balance | | | | | | | | | | | | | | | | | | | | |
| Multi-family construction | | | 48.0 | % | | | 39.7 | % | | | 44.7 | % | | | 37.4 | % | | | 53.0 | % |
| One-to-four family construction | | | 13.2 | % | | | 15.9 | % | | | 10.9 | % | | | 11.6 | % | | | 8.4 | % |
| Recreation and all other loans | | | 1.2 | % | | | 1.1 | % | | | 1.0 | % | | | 2.3 | % | | | 1.6 | % |
| Commercial construction | | | 10.3 | % | | | 13.4 | % | | | 20.1 | % | | | 12.9 | % | | | 10.1 | % |
| Commercial acquisition and development | | | 17.4 | % | | | 19.6 | % | | | 12.1 | % | | | 13.9 | % | | | 6.0 | % |
| Residential acquisition and development | | | 29.2 | % | | | 28.0 | % | | | 24.6 | % | | | 26.3 | % | | | 18.1 | % |
| Total CAD NPL as a % of outstanding CAD balance | | | 19.4 | % | | | 20.5 | % | | | 18.2 | % | | | 18.3 | % | | | 12.6 | % |
-MORE-
BXS Announces Second Quarter Results
Page 15
July 25, 2011
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | June 30, 2011 | |
| | | | | | | Special | | | | | | | | | | | | | | | | |
| | | Pass | | | Mention | | | Substandard | | | Doubtful | | | Loss | | | Impaired | | | Total | |
| LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 1,477,497 | | | $ | 1,312 | | | $ | 40,160 | | | $ | 1,282 | | | $ | 450 | | | $ | 5,985 | | | $ | 1,526,686 | |
| Real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 1,817,381 | | | | 3,885 | | | | 123,392 | | | | 3,485 | | | | 87 | | | | 23,269 | | | | 1,971,499 | |
| Home equity | | | 512,791 | | | | 793 | | | | 16,501 | | | | 427 | | | | 605 | | | | 670 | | | | 531,787 | |
| Agricultural | | | 229,001 | | | | 2,486 | | | | 16,507 | | | | — | | | | — | | | | 7,316 | | | | 255,310 | |
| Commercial and industrial-owner occupied | | | 1,269,218 | | | | 2,304 | | | | 73,272 | | | | 651 | | | | 99 | | | | 21,190 | | | | 1,366,734 | |
| Construction, acquisition and development | | | 728,194 | | | | 20,348 | | | | 114,222 | | | | 594 | | | | 286 | | | | 197,031 | | | | 1,060,675 | |
| Commercial | | | 1,606,844 | | | | 9,130 | | | | 102,762 | | | | 59 | | | | — | | | | 45,853 | | | | 1,764,648 | |
| Credit cards | | | 101,645 | | | | 11 | | | | 281 | | | | 18 | | | | — | | | | — | | | | 101,955 | |
| All other | | | 613,573 | | | | 76 | | | | 18,847 | | | | 411 | | | | 9 | | | | 2,343 | | | | 635,259 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total loans | | $ | 8,356,144 | | | $ | 40,345 | | | $ | 505,944 | | | $ | 6,927 | | | $ | 1,536 | | | $ | 303,657 | | | $ | 9,214,553 | |
| | | | | | | | | | | | | | | | | | | | | | |
-MORE-
BXS Announces Second Quarter Results
Page 16
July 25, 2011
BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | As of | |
| | | Jun-11 | | | Mar-11 | | | Dec-10 | | | Sep-10 | | | Jun-10 | |
| | | | | | | | | | | | | | | | | | | | | |
| Unpaid principal balance of impaired loans | | $ | 374,760 | | | $ | 423,497 | | | $ | 345,377 | | | $ | 311,941 | | | $ | 243,221 | |
| Cumulative charge offs on impaired loans | | | 71,103 | | | | 84,676 | | | | 71,972 | | | | 69,783 | | | | 54,930 | |
| | | | | | | | | | | | | | | | |
| Impaired nonaccrual loan and lease outstanding balance | | | 303,657 | | | | 338,821 | | | | 273,405 | | | | 242,158 | | | | 188,291 | |
| | | | | | | | | | | | | | | | | | | | | |
| Other non-accrual loans and leases not impaired | | | 27,419 | | | | 31,905 | | | | 74,094 | | | | 105,023 | | | | 75,467 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total non-accrual loans and leases | | $ | 331,076 | | | $ | 370,726 | | | $ | 347,499 | | | $ | 347,181 | | | $ | 263,758 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for impaired loans | | | 46,810 | | | | 49,419 | | | | 40,719 | | | | 43,584 | | | | 40,721 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans and leases, net of specific reserves | | $ | 284,266 | | | $ | 321,307 | | | $ | 306,780 | | | $ | 303,597 | | | $ | 223,037 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans and leases 90+ past due, still accruing | | | 3,980 | | | | 4,829 | | | | 8,500 | | | | 9,910 | | | | 17,696 | |
| Restructured loans and leases, still accruing | | | 44,786 | | | | 49,472 | | | | 38,376 | | | | 52,325 | | | | 20,813 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total non-performing loans and leases | | $ | 379,842 | | | $ | 425,027 | | | $ | 394,375 | | | $ | 409,416 | | | $ | 302,267 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for impaired loans | | $ | 46,810 | | | $ | 49,419 | | | $ | 40,719 | | | $ | 43,584 | | | $ | 40,721 | |
| Allowance for all other loans and leases | | | 150,817 | | | | 148,914 | | | | 156,194 | | | | 161,497 | | | | 160,053 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total allowance for credit losses | | $ | 197,627 | | | $ | 198,333 | | | $ | 196,913 | | | $ | 205,081 | | | $ | 200,774 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Outstanding balance of impaired loans | | $ | 303,657 | | | $ | 338,821 | | | $ | 273,405 | | | $ | 242,158 | | | $ | 188,291 | |
| Allowance for impaired loans | | | 46,810 | | | | 49,419 | | | | 40,719 | | | | 43,584 | | | | 40,721 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net book value of impaired loans | | $ | 256,847 | | | $ | 289,402 | | | $ | 232,686 | | | $ | 198,574 | | | $ | 147,570 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net book value of impaired loans as a % of unpaid principal balance | | | 69 | % | | | 68 | % | | | 67 | % | | | 64 | % | | | 61 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Coverage of other Non-accrual loans and leases not impaired by the allowance for all other loans and leases | | | 550 | % | | | 467 | % | | | 211 | % | | | 154 | % | | | 212 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Coverage of non-performing loans and leases not impaired by the allowance for all other loans and leases | | | 198 | % | | | 173 | % | | | 129 | % | | | 97 | % | | | 140 | % |
-MORE-
BXS Announces Second Quarter Results
Page 17
July 25, 2011
BancorpSouth, Inc.
Geographical Information
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Alabama | | | | | | | | | | | | | | | Greater | | | | | | | | | | | | | |
| | | and Florida | | | | | | | | | | | | | | | Memphis | | | Northeast | | | Texas and | | | | | | | |
| | | Panhandle | | | Arkansas | | | Mississippi | | | Missouri | | | Area | | | Tennessee | | | Louisiana | | | Other | | | Total | |
| LOAN AND LEASE PORTFOLIO: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 63,477 | | | $ | 219,533 | | | $ | 322,786 | | | $ | 85,073 | | | $ | 24,045 | | | $ | 84,544 | | | $ | 274,812 | | | $ | 452,416 | | | $ | 1,526,686 | |
| Real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 114,266 | | | | 273,338 | | | | 779,838 | | | | 66,163 | | | | 87,596 | | | | 164,453 | | | | 412,493 | | | | 73,352 | | | | 1,971,499 | |
| Home equity | | | 64,043 | | | | 43,224 | | | | 178,305 | | | | 29,297 | | | | 73,790 | | | | 79,307 | | | | 62,617 | | | | 1,204 | | | | 531,787 | |
| Agricultural | | | 7,338 | | | | 73,285 | | | | 75,142 | | | | 5,642 | | | | 16,248 | | | | 13,629 | | | | 58,370 | | | | 5,656 | | | | 255,310 | |
| Commercial and industrial-owner occupied | | | 125,567 | | | | 175,098 | | | | 472,765 | | | | 74,684 | | | | 109,132 | | | | 101,806 | | | | 246,369 | | | | 61,313 | | | | 1,366,734 | |
| Construction, acquisition and development | | | 133,335 | | | | 86,795 | | | | 273,624 | | | | 88,309 | | | | 128,537 | | | | 130,962 | | | | 208,406 | | | | 10,707 | | | | 1,060,675 | |
| Commercial | | | 195,722 | | | | 340,963 | | | | 344,926 | | | | 241,209 | | | | 132,670 | | | | 105,507 | | | | 354,065 | | | | 49,586 | | | | 1,764,648 | |
| Credit cards | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 101,955 | | | | 101,955 | |
| All other | | | 14,936 | | | | 42,680 | | | | 79,088 | | | | 1,409 | | | | 48,596 | | | | 28,516 | | | | 29,521 | | | | 390,513 | | | | 635,259 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total loans | | $ | 718,684 | | | $ | 1,254,916 | | | $ | 2,526,474 | | | $ | 591,786 | | | $ | 620,614 | | | $ | 708,724 | | | $ | 1,646,653 | | | $ | 1,146,702 | | | $ | 9,214,553 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| CAD PORTFOLIO: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Multi-family construction | | $ | — | | | $ | — | | | $ | 9,185 | | | $ | 8,667 | | | $ | 741 | | | $ | 98 | | | $ | 232 | | | $ | 193 | | | $ | 19,116 | |
| One-to-four family construction | | | 32,746 | | | | 18,881 | | | | 48,004 | | | | 9,676 | | | | 13,104 | | | | 36,626 | | | | 37,768 | | | | 2,004 | | | | 198,809 | |
| Recreation and all other loans | | | 1,158 | | | | 10,292 | | | | 33,901 | | | | 597 | | | | 2,977 | | | | 983 | | | | 15,789 | | | | 669 | | | | 66,366 | |
| Commercial construction | | | 18,922 | | | | 9,079 | | | | 37,222 | | | | 18,145 | | | | 17,156 | | | | 30,021 | | | | 28,665 | | | | 1,624 | | | | 160,834 | |
| Commercial acquisition and development | | | 12,031 | | | | 21,316 | | | | 51,069 | | | | 25,978 | | | | 33,965 | | | | 25,214 | | | | 50,640 | | | | 2,247 | | | | 222,460 | |
| Residential acquisition and development | | | 68,478 | | | | 27,227 | | | | 94,243 | | | | 25,246 | | | | 60,594 | | | | 38,020 | | | | 75,312 | | | | 3,970 | | | | 393,090 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total CAD loans | | $ | 133,335 | | | $ | 86,795 | | | $ | 273,624 | | | $ | 88,309 | | | $ | 128,537 | | | $ | 130,962 | | | $ | 208,406 | | | $ | 10,707 | | | $ | 1,060,675 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NON-PERFORMING LOANS AND LEASES: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 2,509 | | | $ | 1,248 | | | $ | 512 | | | $ | 132 | | | $ | 496 | | | $ | 239 | | | $ | 3,121 | | | $ | 1,698 | | | $ | 9,955 | |
| Real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 6,015 | | | | 3,872 | | | | 8,782 | | | | 3,902 | | | | 2,008 | | | | 3,988 | | | | 4,238 | | | | 5,892 | | | | 38,697 | |
| Home equity | | | 656 | | | | — | | | | 185 | | | | 51 | | | | 264 | | | | 190 | | | | 128 | | | | — | | | | 1,474 | |
| Agricultural | | | 702 | | | | 643 | | | | 823 | | | | 2,037 | | | | 4,805 | | | | 76 | | | | 200 | | | | — | | | | 9,286 | |
| Commercial and industrial-owner occupied | | | 7,701 | | | | 4,778 | | | | 4,893 | | | | 2,967 | | | | 6,578 | | | | 3,296 | | | | 1,950 | | | | 162 | | | | 32,325 | |
| Construction, acquisition and development | | | 48,003 | | | | 7,544 | | | | 19,915 | | | | 20,840 | | | | 47,347 | | | | 20,181 | | | | 42,446 | | | | — | | | | 206,276 | |
| Commercial | | | 5,572 | | | | 2,594 | | | | 10,081 | | | | 25,710 | | | | 12,910 | | | | 6,501 | | | | 2,016 | | | | 658 | | | | 66,042 | |
| Credit cards | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 3,603 | | | | 3,603 | |
| All other | | | 1,895 | | | | 2,199 | | | | 5,329 | | | | 170 | | | | 108 | | | | 1,387 | | | | — | | | | 1,096 | | | | 12,184 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total loans | | $ | 73,053 | | | $ | 22,878 | | | $ | 50,520 | | | $ | 55,809 | | | $ | 74,516 | | | $ | 35,858 | | | $ | 54,099 | | | $ | 13,109 | | | $ | 379,842 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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BXS Announces Second Quarter Results
Page 18
July 25, 2011
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | June 30, 2011 | |
| | | Alabama | | | | | | | | | | | | | | | Greater | | | | | | | | | | | | | |
| | | and Florida | | | | | | | | | | | | | | | Memphis | | | Northeast | | | Texas and | | | | | | | |
| | | Panhandle | | | Arkansas | | | Mississippi | | | Missouri | | | Area | | | Tennessee | | | Louisiana | | | Other | | | Total | |
| OTHER REAL ESTATE OWNED: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial and industrial | | $ | 439 | | | $ | 18 | | | $ | — | | | $ | — | | | $ | 946 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,403 | |
| Real estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Consumer mortgages | | | 3,985 | | | | 327 | | | | 3,391 | | | | 762 | | | | 6,078 | | | | 2,642 | | | | 1,120 | | | | 1,649 | | | | 19,954 | |
| Home equity | | | — | | | | 58 | | | | 291 | | | | — | | | | — | | | | 368 | | | | — | | | | — | | | | 717 | |
| Agricultural | | | 950 | | | | 87 | | | | 2,081 | | | | — | | | | 1,551 | | | | — | | | | — | | | | — | | | | 4,669 | |
| Commercial and industrial-owner occupied | | | 930 | | | | 109 | | | | 1,740 | | | | 79 | | | | 3,515 | | | | 446 | | | | 228 | | | | 292 | | | | 7,339 | |
| Construction, acquisition and development | | | 9,334 | | | | 2,231 | | | | 26,052 | | | | 2,952 | | | | 49,562 | | | | 14,931 | | | | 2,669 | | | | 621 | | | | 108,352 | |
| Commercial | | | 2,757 | | | | 1,725 | | | | 1,112 | | | | 451 | | | | 1,215 | | | | 203 | | | | 584 | | | | — | | | | 8,047 | |
| All other | | | 172 | | | | 44 | | | | 312 | | | | 195 | | | | — | | | | — | | | | — | | | | — | | | | 723 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total loans | | $ | 18,567 | | | $ | 4,599 | | | $ | 34,979 | | | $ | 4,439 | | | $ | 62,867 | | | $ | 18,590 | | | $ | 4,601 | | | $ | 2,562 | | | $ | 151,204 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Jun-11 | | | Mar-11 | | | Dec-10 | | | Sep-10 | | | Jun-10 | |
| OTHER REAL ESTATE OWNED: | | | | | | | | | | | | | | | | | | | | |
| Balance, beginning of period | | $ | 136,412 | | | $ | 133,412 | | | $ | 82,647 | | | $ | 67,560 | | | $ | 59,269 | |
| Additions to foreclosed properties | | | | | | | | | | | | | | | | | | | | |
| New foreclosed property | | | 38,199 | | | | 21,464 | | | | 62,683 | | | | 30,008 | | | | 22,490 | |
| Reductions in foreclosed properties | | | | | | | | | | | | | | | | | | | | |
| Sales | | | (21,135 | ) | | | (13,528 | ) | | | (8,528 | ) | | | (12,356 | ) | | | (11,811 | ) |
| Writedowns | | | (2,272 | ) | | | (4,936 | ) | | | (3,390 | ) | | | (2,565 | ) | | | (2,388 | ) |
| | | | | | | | | | | | | | | | |
| Balance, end of period | | $ | 151,204 | | | $ | 136,412 | | | $ | 133,412 | | | $ | 82,647 | | | $ | 67,560 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| FORECLOSED PROPERTY EXPENSE | | | | | | | | | | | | | | | | | | | | |
| Loss on sale of other real estate owned | | $ | (140 | ) | | $ | 492 | | | $ | 807 | | | $ | 1,501 | | | $ | 830 | |
| Writedown of other real estate owned | | | 2,272 | | | | 4,936 | | | | 3,390 | | | | 2,565 | | | | 2,388 | |
| Other foreclosed property expense | | | 1,633 | | | | 1,654 | | | | 1,895 | | | | 846 | | | | 595 | |
| | | | | | | | | | | | | | | | |
| Total foreclosed property expense | | $ | 3,765 | | | $ | 7,082 | | | $ | 6,092 | | | $ | 4,912 | | | $ | 3,813 | |
| | | | | | | | | | | | | | | | |
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BXS Announces Second Quarter Results
Page 19
July 25, 2011
BancorpSouth, Inc.
Noninterest Revenue and Expense
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Jun-11 | | | Mar-11 | | | Dec-10 | | | Sep-10 | | | Jun-10 | |
| NONINTEREST REVENUE: | | | | | | | | | | | | | | | | | | | | |
| Mortgage lending | | $ | 2,003 | | | $ | 7,581 | | | $ | 18,126 | | | $ | 8,898 | | | $ | (2,304 | ) |
| Credit card, debit card and merchant fees | | | 11,263 | | | | 10,346 | | | | 9,951 | | | | 9,569 | | | | 9,333 | |
| Service charges | | | 16,556 | | | | 15,368 | | | | 16,854 | | | | 18,621 | | | | 18,953 | |
| Trust income | | | 2,850 | | | | 3,134 | | | | 3,072 | | | | 2,783 | | | | 2,707 | |
| Securities gains (losses), net | | | 10,045 | | | | 17 | | | | (470 | ) | | | 2,327 | | | | (585 | ) |
| Insurance commissions | | | 22,941 | | | | 22,549 | | | | 18,013 | | | | 20,825 | | | | 21,666 | |
| Annuity fees | | | 1,094 | | | | 1,296 | | | | 458 | | | | 537 | | | | 698 | |
| Brokerage commissions and fees | | | 1,437 | | | | 1,638 | | | | 1,436 | | | | 1,340 | | | | 1,419 | |
| Bank-owned life insurance | | | 2,223 | | | | 1,699 | | | | 2,303 | | | | 1,793 | | | | 1,972 | |
| Other miscellaneous income | | | 4,732 | | | | 4,683 | | | | 4,231 | | | | 3,059 | | | | 3,227 | |
| | | | | | | | | | | | | | | | |
| Total noninterest revenue | | $ | 75,144 | | | $ | 68,311 | | | $ | 73,974 | | | $ | 69,752 | | | $ | 57,086 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| NONINTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | $ | 70,142 | | | $ | 70,375 | | | $ | 65,980 | | | $ | 68,232 | | | $ | 68,189 | |
| Occupancy, net of rental income | | $ | 10,232 | | | $ | 10,671 | | | $ | 10,668 | | | $ | 11,038 | | | $ | 10,527 | |
| Equipment | | | 5,595 | | | | 5,658 | | | | 5,459 | | | | 5,523 | | | | 5,877 | |
| Deposit insurance assessments | | | 6,436 | | | | 5,425 | | | | 5,895 | | | | 4,752 | | | | 4,362 | |
| Prepayment penalty on FHLB borrowings | | | 9,778 | | | | — | | | | — | | | | — | | | | — | |
| Advertising | | | 1,291 | | | | 889 | | | | 1,760 | | | | 1,742 | | | | 1,196 | |
| Foreclosed property expense | | | 3,765 | | | | 7,082 | | | | 6,092 | | | | 4,912 | | | | 3,813 | |
| Telecommunications | | | 2,036 | | | | 2,143 | | | | 2,148 | | | | 2,624 | | | | 2,494 | |
| Public relations | | | 1,554 | | | | 1,514 | | | | 1,361 | | | | 1,423 | | | | 1,656 | |
| Data processing | | | 2,365 | | | | 2,301 | | | | 1,428 | | | | 1,576 | | | | 1,594 | |
| Computer software | | | 1,899 | | | | 1,848 | | | | 1,937 | | | | 1,793 | | | | 1,900 | |
| Amortization of intangibles | | | 833 | | | | 854 | | | | 950 | | | | 961 | | | | 984 | |
| Legal | | | 1,095 | | | | 2,586 | | | | 1,872 | | | | 1,727 | | | | 1,313 | |
| Postage and shipping | | | 1,171 | | | | 1,297 | | | | 1,269 | | | | 1,237 | | | | 1,178 | |
| Other miscellaneous expense | | | 18,877 | | | | 17,367 | | | | 16,628 | | | | 15,547 | | | | 14,933 | |
| | | | | | | | | | | | | | | | |
| Total noninterest expense | | $ | 137,069 | | | $ | 130,010 | | | $ | 123,447 | | | $ | 123,087 | | | $ | 120,016 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| INSURANCE COMMISSIONS: | | | | | | | | | | | | | | | | | | | | |
| Property and casualty commissions | | $ | 16,527 | | | $ | 13,683 | | | $ | 13,304 | | | $ | 15,795 | | | $ | 15,648 | |
| Life and health commissions | | | 4,301 | | | | 4,477 | | | | 3,627 | | | | 3,717 | | | | 3,899 | |
| Risk management income | | | 596 | | | | 713 | | | | 617 | | | | 812 | | | | 627 | |
| Other | | | 1,517 | | | | 3,676 | | | | 465 | | | | 501 | | | | 1,492 | |
| | | | | | | | | | | | | | | | |
| Total insurance commissions | | $ | 22,941 | | | $ | 22,549 | | | $ | 18,013 | | | $ | 20,825 | | | $ | 21,666 | |
| | | | | | | | | | | | | | | | |
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BXS Announces Second Quarter Results
Page 20
July 25, 2011
BancorpSouth, Inc.
Selected Additional Information
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | Jun-11 | | | Mar-11 | | | Dec-10 | | | Sep-10 | | | Jun-10 | |
| MORTGAGE SERVICING RIGHTS: | | | | | | | | | | | | | | | | | | | | |
| Fair value, beginning of period | | $ | 42,306 | | | $ | 38,642 | | | $ | 26,901 | | | $ | 29,363 | | | $ | 36,350 | |
| Additions to mortgage servicing rights: | | | | | | | | | | | | | | | | | | | | |
| Originations of servicing assets | | | 2,380 | | | | 2,431 | | | | 4,725 | | | | 4,314 | | | | 2,774 | |
| Changes in fair value: | | | | | | | | | | | | | | | | | | | | |
| Due to payoffs/paydowns | | | (1,390 | ) | | | (1,300 | ) | | | (1,881 | ) | | | (2,164 | ) | | | (1,434 | ) |
| Due to change in valuation inputs or assumptions used in the valuation model | | | (3,839 | ) | | | 2,540 | | | | 8,895 | | | | (4,609 | ) | | | (8,323 | ) |
| Other changes in fair value | | | (2 | ) | | | (7 | ) | | | 2 | | | | (3 | ) | | | (4 | ) |
| | | | | | | | | | | | | | | | |
| Fair value, end of period | | $ | 39,455 | | | $ | 42,306 | | | $ | 38,642 | | | $ | 26,901 | | | $ | 29,363 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| MORTGAGE LENDING REVENUE: | | | | | | | | | | | | | | | | | | | | |
| Production revenue: | | | | | | | | | | | | | | | | | | | | |
| Origination | | $ | 4,066 | | | $ | 3,224 | | | $ | 7,942 | | | $ | 12,735 | | | $ | 4,532 | |
| Servicing | | | 3,166 | | | | 3,117 | | | | 3,170 | | | | 2,936 | | | | 2,921 | |
| Payoffs/Paydowns | | | (1,390 | ) | | | (1,300 | ) | | | (1,881 | ) | | | (2,164 | ) | | | (1,434 | ) |
| | | | | | | | | | | | | | | | |
| Total production revenue | | | 5,842 | | | | 5,041 | | | | 9,231 | | | | 13,507 | | | | 6,019 | |
| Market value adjustment | | | (3,839 | ) | | | 2,540 | | | | 8,895 | | | | (4,609 | ) | | | (8,323 | ) |
| | | | | | | | | | | | | | | | |
| Total mortgage lending revenue | | $ | 2,003 | | | $ | 7,581 | | | $ | 18,126 | | | $ | 8,898 | | | $ | (2,304 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| HELD-TO-MATURITY SECURITIES, at amortized cost | | | | | | | | | | | | | | | | | | | | |
| U.S. Government agencies | | $ | — | | | $ | 1,278,185 | | | $ | 1,246,649 | | | $ | 988,666 | | | $ | 882,931 | |
| Obligations of states and political subdivisions | | | — | | | | 389,018 | | | | 366,370 | | | | 369,222 | | | | 264,226 | |
| | | | | | | | | | | | | | | | |
| Total held-to-maturity securities | | $ | — | | | $ | 1,667,203 | | | $ | 1,613,019 | | | $ | 1,357,888 | | | $ | 1,147,157 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| AVAILABLE-FOR-SALE SECURITIES, at fair value | | | | | | | | | | | | | | | | | | | | |
| U.S. Government agencies | | $ | 1,599,231 | | | $ | 459,763 | | | $ | 433,158 | | | $ | 440,442 | | | $ | 492,175 | |
| Government agency issued residential mortgage-back securities | | | 430,402 | | | | 529,302 | | | | 503,229 | | | | 320,471 | | | | 319,918 | |
| Government agency issued commercial mortgage-back securities | | | 31,627 | | | | 30,938 | | | | 29,994 | | | | 25,982 | | | | 23,703 | |
| Obligations of states and political subdivisions | | | 486,653 | | | | 111,380 | | | | 110,165 | | | | 108,958 | | | | 110,244 | |
| Collateralized debt obligations | | | — | | | | — | | | | — | | | | 576 | | | | 812 | |
| Other | | | 12,911 | | | | 14,080 | | | | 19,516 | | | | 19,448 | | | | 15,840 | |
| | | | | | | | | | | | | | | | |
| Total available-for-sale securities | | $ | 2,560,824 | | | $ | 1,145,463 | | | $ | 1,096,062 | | | $ | 915,877 | | | $ | 962,692 | |
| | | | | | | | | | | | | | | | |
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BXS Announces Second Quarter Results
Page 21
July 25, 2011
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | June 30, 2011 | |
| | | Average | | | | | | | Yield/ | |
| (Taxable equivalent basis) | | Balance | | | Interest | | | Rate | |
| ASSETS | | | | | | | | | | | | |
| Loans, loans held for sale, and leases net of unearned income | | $ | 9,293,831 | | | $ | 118,284 | | | | 5.10 | % |
| Held-to-maturity securities: | | | | | | | | | | | | |
| Taxable | | | 887,767 | | | | 5,143 | | | | 2.32 | % |
| Tax-exempt | | | 209,795 | | | | 3,523 | | | | 6.74 | % |
| Available-for-sale securities: | | | | | | | | | | | | |
| Taxable | | | 1,432,822 | | | | 10,485 | | | | 2.94 | % |
| Tax-exempt | | | 176,898 | | | | 2,879 | | | | 6.53 | % |
| Short-term investments | | | 226,638 | | | | 160 | | | | 0.28 | % |
| | | | | | | | | | | |
| Total interest earning assets and revenue | | | 12,227,751 | | | | 140,474 | | | | 4.61 | % |
| Other assets | | | 1,350,777 | | | | | | | | | |
| Less: allowance for credit losses | | | (212,968 | ) | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,365,560 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand — interest bearing | | $ | 4,977,764 | | | $ | 6,040 | | | | 0.49 | % |
| Savings | | | 941,169 | | | | 810 | | | | 0.35 | % |
| Other time | | | 3,418,741 | | | | 16,284 | | | | 1.91 | % |
| Short-term borrowings | | | 425,666 | | | | 155 | | | | 0.15 | % |
| Junior subordinated debt | | | 160,312 | | | | 2,860 | | | | 7.16 | % |
| Long-term debt | | | 89,395 | | | | 1,174 | | | | 5.27 | % |
| | | | | | | | | | | |
| Total interest bearing liabilities and expense | | | 10,013,047 | | | | 27,323 | | | | 1.09 | % |
| Demand deposits — noninterest bearing | | | 2,018,197 | | | | | | | | | |
| Other liabilities | | | 112,035 | | | | | | | | | |
| | | | | | | | | | | | |
| Total liabilities | | | 12,143,279 | | | | | | | | | |
| Shareholders’ equity | | | 1,222,281 | | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,365,560 | | | | | | | | | |
| | | | | | | | | | | |
| Net interest revenue | | | | | | $ | 113,151 | | | | | |
| | | | | | | | | | | | |
| Net interest margin | | | | | | | | | | | 3.71 | % |
| Net interest rate spread | | | | | | | | | | | 3.51 | % |
| Interest bearing liabilities to interest earning assets | | | | | | | | | | | 81.89 | % |
| | | | | | | | | | | | | |
| Net interest tax equivalent adjustment | | | | | | $ | 3,239 | | | | | |
-MORE-
BXS Announces Second Quarter Results
Page 22
July 25, 2011
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | March 31, 2011 | |
| | | Average | | | | | | | Yield/ | |
| (Taxable equivalent basis) | | Balance | | | Interest | | | Rate | |
| ASSETS | | | | | | | | | | | | |
| Loans, loans held for sale, and leases net of unearned income | | $ | 9,339,083 | | | $ | 118,648 | | | | 5.15 | % |
| Held-to-maturity securities: | | | | | | | | | | | | |
| Taxable | | | 1,322,668 | | | | 8,124 | | | | 2.49 | % |
| Tax-exempt | | | 330,616 | | | | 5,150 | | | | 6.32 | % |
| Available-for-sale securities: | | | | | | | | | | | | |
| Taxable | | | 1,014,404 | | | | 8,585 | | | | 3.43 | % |
| Tax-exempt | | | 70,727 | | | | 1,267 | | | | 7.27 | % |
| Short-term investments | | | 317,271 | | | | 253 | | | | 0.32 | % |
| | | | | | | | | | | |
| Total interest earning assets and revenue | | | 12,394,769 | | | | 142,026 | | | | 4.65 | % |
| Other assets | | | 1,363,101 | | | | | | | | | |
| Less: allowance for credit losses | | | (218,107 | ) | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,539,763 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand — interest bearing | | $ | 5,153,063 | | | $ | 6,546 | | | | 0.52 | % |
| Savings | | | 897,312 | | | | 826 | | | | 0.37 | % |
| Other time | | | 3,553,543 | | | | 17,483 | | | | 2.00 | % |
| Short-term borrowings | | | 433,743 | | | | 193 | | | | 0.18 | % |
| Junior subordinated debt | | | 160,312 | | | | 2,859 | | | | 7.23 | % |
| Long-term debt | | | 110,000 | | | | 1,484 | | | | 5.47 | % |
| | | | | | | | | | | |
| Total interest bearing liabilities and expense | | | 10,307,973 | | | | 29,391 | | | | 1.16 | % |
| Demand deposits — noninterest bearing | | | 1,893,720 | | | | | | | | | |
| Other liabilities | | | 118,671 | | | | | | | | | |
| | | | | | | | | | | | |
| Total liabilities | | | 12,320,364 | | | | | | | | | |
| Shareholders’ equity | | | 1,219,399 | | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,539,763 | | | | | | | | | |
| | | | | | | | | | | |
| Net interest revenue | | | | | | $ | 112,635 | | | | | |
| | | | | | | | | | | | |
| Net interest margin | | | | | | | | | | | 3.69 | % |
| Net interest rate spread | | | | | | | | | | | 3.49 | % |
| Interest bearing liabilities to interest earning assets | | | | | | | | | | | 83.16 | % |
| | | | | | | | | | | | | |
| Net interest tax equivalent adjustment | | | | | | $ | 3,199 | | | | | |
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BXS Announces Second Quarter Results
Page 23
July 25, 2011
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | December 31, 2010 | |
| | | Average | | | | | | | Yield/ | |
| (Taxable equivalent basis) | | Balance | | | Interest | | | Rate | |
| ASSETS | | | | | | | | | | | | |
| Loans, loans held for sale, and leases net of unearned income | | $ | 9,509,949 | | | $ | 123,491 | | | | 5.15 | % |
| Held-to-maturity securities: | | | | | | | | | | | | |
| Taxable | | | 1,154,939 | | | | 8,600 | | | | 2.95 | % |
| Tax-exempt | | | 281,283 | | | | 4,542 | | | | 6.41 | % |
| Available-for-sale securities: | | | | | | | | | | | | |
| Taxable | | | 923,085 | | | | 7,836 | | | | 3.37 | % |
| Tax-exempt | | | 72,921 | | | | 1,254 | | | | 6.82 | % |
| Short-term investments | | | 568,528 | | | | 391 | | | | 0.27 | % |
| | | | | | | | | | | |
| Total interest earning assets and revenue | | | 12,510,705 | | | | 146,114 | | | | 4.63 | % |
| Other assets | | | 1,263,611 | | | | | | | | | |
| Less: allowance for credit losses | | | (215,278 | ) | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,559,038 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand — interest bearing | | $ | 4,740,734 | | | $ | 7,462 | | | | 0.62 | % |
| Savings | | | 831,805 | | | | 891 | | | | 0.42 | % |
| Other time | | | 3,745,046 | | | | 19,827 | | | | 2.10 | % |
| Short-term borrowings | | | 623,862 | | | | 275 | | | | 0.17 | % |
| Junior subordinated debt | | | 160,312 | | | | 2,864 | | | | 7.09 | % |
| Long-term debt | | | 110,000 | | | | 1,485 | | | | 5.36 | % |
| | | | | | | | | | | |
| Total interest bearing liabilities and expense | | | 10,211,759 | | | | 32,804 | | | | 1.27 | % |
| Demand deposits — noninterest bearing | | | 1,975,318 | | | | | | | | | |
| Other liabilities | | | 146,447 | | | | | | | | | |
| | | | | | | | | | | | |
| Total liabilities | | | 12,333,524 | | | | | | | | | |
| Shareholders’ equity | | | 1,225,514 | | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,559,038 | | | | | | | | | |
| | | | | | | | | | | |
| Net interest revenue | | | | | | $ | 113,310 | | | | | |
| | | | | | | | | | | | |
| Net interest margin | | | | | | | | | | | 3.59 | % |
| Net interest rate spread | | | | | | | | | | | 3.36 | % |
| Interest bearing liabilities to interest earning assets | | | | | | | | | | | 81.62 | % |
| | | | | | | | | | | | | |
| Net interest tax equivalent adjustment | | | | | | $ | 3,057 | | | | | |
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BXS Announces Second Quarter Results
Page 24
July 25, 2011
BancorpSouth, Inc.
Average Balances, Interest Income and Expense,
and Average Yields and Rates
(Dollars in thousands)
(Unaudited)
| | | | | | | | | | | | | |
| | | Quarter Ended | |
| | | September 30, 2010 | |
| | | Average | | | | | | | Yield/ | |
| (Taxable equivalent basis) | | Balance | | | Interest | | | Rate | |
| ASSETS | | | | | | | | | | | | |
| Loans, loans held for sale, and leases net of unearned income | | $ | 9,682,146 | | | $ | 125,211 | | | | 5.13 | % |
| Held-to-maturity securities: | | | | | | | | | | | | |
| Taxable | | | 993,494 | | | | 9,119 | | | | 3.64 | % |
| Tax-exempt | | | 230,182 | | | | 3,975 | | | | 6.85 | % |
| Available-for-sale securities: | | | | | | | | | | | | |
| Taxable | | | 847,942 | | | | 7,782 | | | | 3.64 | % |
| Tax-exempt | | | 69,735 | | | | 1,225 | | | | 6.97 | % |
| Short-term investments | | | 442,927 | | | | 292 | | | | 0.26 | % |
| | | | | | | | | | | |
| Total interest earning assets and revenue | | | 12,266,426 | | | | 147,604 | | | | 4.77 | % |
| Other assets | | | 1,265,657 | | | | | | | | | |
| Less: allowance for credit losses | | | (227,201 | ) | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,304,882 | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand — interest bearing | | $ | 4,651,166 | | | $ | 8,582 | | | | 0.73 | % |
| Savings | | | 786,267 | | | | 881 | | | | 0.44 | % |
| Other time | | | 3,829,068 | | | | 21,108 | | | | 2.19 | % |
| Short-term borrowings | | | 483,651 | | | | 257 | | | | 0.21 | % |
| Junior subordinated debt | | | 160,312 | | | | 2,880 | | | | 7.13 | % |
| Long-term debt | | | 110,734 | | | | 1,499 | | | | 5.37 | % |
| | | | | | | | | | | |
| Total interest bearing liabilities and expense | | | 10,021,198 | | | | 35,207 | | | | 1.39 | % |
| Demand deposits — noninterest bearing | | | 1,911,125 | | | | | | | | | |
| Other liabilities | | | 143,413 | | | | | | | | | |
| | | | | | | | | | | | |
| Total liabilities | | | 12,075,736 | | | | | | | | | |
| Shareholders’ equity | | | 1,229,146 | | | | | | | | | |
| | | | | | | | | | | | |
| Total | | $ | 13,304,882 | | | | | | | | | |
| | | | | | | | | | | |
| Net interest revenue | | | | | | $ | 112,397 | | | | | |
| | | | | | | | | | | | |
| Net interest margin | | | | | | | | | | | 3.64 | % |
| Net interest rate spread | | | | | | | | | | | 3.38 | % |
| Interest bearing liabilities to interest earning assets | | | | | | | | | | | 81.70 | % |
| | | | | | | | | | | | | |
| Net interest tax equivalent adjustment | | | | | | $ | 2,719 | | | | | |
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BXS Announces Second Quarter Results
Page 25
July 25, 2011
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 | | | | | |
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BXS Announces Second Quarter Results
Page 26
July 25, 2011
BancorpSouth, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in thousands)
(Unaudited)
Reconciliation of Pre-tax, Pre-provision Earnings (a):
| | | | | | | | | | | | | | | |
| | | | | Quarter Ended | |
| | | | | June 30, | | | March 31, | | | June 30, | |
| | | | | 2011 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | | | |
| Net income (loss) | | $ | 12,826 | | | $ | (494 | ) | | $ | (12,560 | ) |
| Plus: | | Provision for credit losses | | | 32,240 | | | | 53,479 | | | | 62,354 | |
| | | Income tax expense (benefit) | | | 2,921 | | | | (5,247 | ) | | | (3,395 | ) |
| | | | | | | | | | | | |
| Pre-tax, pre-provision earnings | | $ | 47,987 | | | $ | 47,738 | | | $ | 46,399 | |
Reconciliation of Tangible Assets and Tangible Shareholders’ Equity to Total Assets and Total Shareholders’ Equity (b):
| | | | | | | | | | | | | | | |
| | | | | June 30, | | | March 31, | |
| | | | | 2011 | | | 2010 | | | 2011 | |
| Tangible assets | | | | | | | | | | | | |
| Total assets | | $ | 13,367,050 | | | $ | 13,421,004 | | | $ | 13,547,238 | |
| Less: | | Goodwill | | | 271,297 | | | | 270,097 | | | | 271,297 | |
| | | Other identifiable intangible assets | | | 18,249 | | | | 21,533 | | | | 18,844 | |
| | | | | | | | | | | | |
| Total tangible assets | | $ | 13,077,504 | | | $ | 13,129,374 | | | $ | 13,257,097 | |
| | | | | | | | | | | | | | | |
| Tangible shareholders’ equity | | | | | | | | | | | | |
| Total shareholders’ equity | | $ | 1,246,703 | | | $ | 1,240,259 | | | $ | 1,211,061 | |
| Less: | | Goodwill | | | 271,297 | | | | 270,097 | | | | 271,297 | |
| | | Other identifiable intangible assets | | | 18,249 | | | | 21,533 | | | | 18,844 | |
| | | | | | | | | | | | |
| Total tangible shareholders’ equity | | $ | 957,157 | | | $ | 948,629 | | | $ | 920,920 | |
| | | | | | | | | | | | | | | |
| Tangible shareholders’ equity to tangible assets | | | 7.32 | % | | | 7.23 | % | | | 6.95 | % |
| | |
| (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 (loss) plus provision for credit losses and income tax expense (benefit). Management believes pre-tax, pre-provision earnings are important to investors as it shows earnings trends without giving effect to provision for credit losses and taxes. |
| |
| (b) | | BancorpSouth, Inc. utilizes the ratio of tangible shareholders’ equity to tangible assets 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. Management believes the ratio of tangible shareholders’ equity to tangible assets is important to investors who are interested in evaluating the adequacy of the Company’s capital levels. |
-END-
