EX-99.1 2 d283982dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

News Release

LOGO

 

Contact:

   

William L. Prater

    Will Fisackerly

Treasurer and
Chief Financial Officer

   

First Vice President and
Director of Investor Relations

662/680-2000

    662/680-2475

BancorpSouth Announces Fourth Quarter 2011 Earnings of

$13.3 Million or $0.16 per Diluted Share

TUPELO, Miss., January 17, 2012/PRNewswire-FirstCall via COMTEX/ — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter and year ended December 31, 2011. The Company reported net income of $37.6 million, or $0.45 per diluted share, for 2011 compared with $22.9 million, or $0.27 per diluted share, for 2010. Additionally, the Company reported net income of $13.3 million, or $0.16 per diluted share, for the fourth quarter of 2011. This compares with $11.9 million, or $0.14 per diluted share, for the third quarter of 2011 and $15.8 million, or $0.19 per diluted share, for the fourth quarter of 2010.

“Our results for the fourth quarter reflect meaningful progress in our efforts to improve credit quality,” remarked Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth. “This progress is evidenced by both comparable quarter and sequential quarter improvement in many of our credit quality indicators, including the provision for credit losses, non-performing loans, nonaccrual loan formation, and near term delinquencies.”

Earnings for the quarter benefited from a reduction in the provision for credit losses to $19.3 million compared to $43.3 million for the fourth quarter of 2010 and $25.1 million for the third quarter of 2011. Non-performing loans (“NPLs”) declined $40.5 million, or 11.2 percent, during the fourth quarter of 2011 to $322.3 million at December 31, 2011 compared with $362.8 million at September 30, 2011. This decline followed a $17.0 million, or 4.5 percent, decline during the third quarter of 2011. In addition, gross nonaccrual loan formation decreased to $39.5 million for the fourth quarter of 2011 compared to $131.1 million for the fourth quarter of 2010 and $60.8 million for the third quarter of 2011. This represents the lowest level of nonaccrual loan formation in nine quarters. Total loans 30 – 89 days past due decreased during the fourth quarter of 2011 to $37.5 million at December 31, 2011 from $54.1 million at September 30, 2011. Net charge-offs increased $0.8 million, or 3.3 percent, to $23.8 million for the fourth quarter of 2011 compared with the third quarter of 2011. Net charge-offs during the fourth quarter of 2011 included $19.0 million of charge-offs of previously impaired loans. The increase in net charge-offs during the quarter followed a $9.9 million, or 30.0 percent, sequential quarter decline for the third quarter of 2011.

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

BancorpSouth, Inc. is a financial holding company.

BXS Announces Fourth Quarter Results

Page 2

January 17, 2012

 

The $40.5 million decline in NPLs during the fourth quarter of 2011 was driven primarily by a $37.7 million decline in nonaccrual loans. Construction, acquisition and development (“CAD”) nonaccrual loans declined $38.5 million to $133.1 million at December 31, 2011 from $171.6 million at September 30, 2011 and represented 48.1 percent of total nonaccrual loans at the end of the fourth quarter. Additionally, commercial real estate nonaccrual loans declined $8.9 million, or 18.0 percent, during the fourth quarter. These declines in the fourth quarter were offset partially by increases in consumer mortgage nonaccrual loans as well as commercial and industrial owner-occupied real estate nonaccrual loans. Total loans 90 days or more past due and still accruing declined $3.9 million from $7.4 million at September 30, 2011 to $3.4 million at December 31, 2011, and restructured loans and leases still accruing increased $1.1 million from $41.0 million at September 30, 2011 to $42.0 million at December 31, 2011.

At the end of the fourth quarter, 84.9 percent of nonaccrual loans were determined to be collaterally dependent, and after write-downs and specific reserves, the remaining book balance of these loans was 68.0 percent of the unpaid principal balance. At December 31, 2011, coverage of unimpaired nonaccrual loans by the nonspecified allowance for credit losses was 371 percent and coverage of unimpaired NPLs by the nonspecified allowance for credit losses was 178 percent. In addition, 51.0 percent of nonaccrual loans were paying as agreed at December 31, 2011, compared with 48.1 percent at the end of the third quarter of 2011.

Other real estate owned increased $11.1 million to $173.8 million during the fourth quarter of 2011. This increase reflected $36.5 million added through foreclosure, partially offset by sales of other real estate owned of $16.7 million, which increased from sales of $13.1 million for the third quarter of 2011. Write-downs in the value of existing properties were $8.7 million for the fourth quarter of 2011, representing an increase of $4.3 million from $4.4 million for the third quarter of 2011. The sales of other real estate owned during the fourth quarter of 2011 resulted in no material net gain or loss, consistent with the third quarter of 2011. The write-downs of existing other real estate owned reflected our continued efforts to value ORE properties at disposition value. “We were pleased with the disposal progress made during the quarter,” commented Patterson. At December 31, 2011 other real estate owned was carried at 54 percent of the aggregate loan balances at the time of foreclosure, compared with 56 percent at September 30, 2011.

Patterson added, “We continue to have solid performance from our community banking group as well as our other noninterest revenue lines of business, which include our insurance group and our mortgage business. Our mortgage business had another strong year, both in terms of production and revenue, and our insurance group produced organic growth when compared to the same quarter last year as well as on an annual basis. Additionally, despite margin pressure attributable to a weak lending environment and historically low interest rates, we have been able to maintain our net interest margin.”

Net Interest Revenue

Net interest revenue was $107.5 million for the fourth quarter of 2011, a decrease of 2.5 percent from $110.3 million for the fourth quarter of 2010 and 0.5 percent from $108.1 million for the third quarter of 2011. The fully taxable equivalent net interest margin was 3.69 percent for the fourth quarter of 2011 compared with 3.59 percent for the fourth quarter of 2010 and 3.66 percent for the third quarter of 2011.

 

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BXS Announces Fourth Quarter Results

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January 17, 2012

 

Asset, Deposit and Loan Activity

Total assets were $13.0 billion at December 31, 2011 compared with $13.6 billion at December 31, 2010. Total deposits were $11.0 billion at December 31, 2011, a decrease of 4.7 percent from $11.5 billion at December 31, 2010. Loans and leases, net of unearned income, were $8.9 billion at December 31, 2011, a decrease of 5.0 percent from $9.3 billion at December 31, 2010.

The CAD loan portfolio, which decreased $266.4 million, or 22.7 percent, for the 12 months ended December 31, 2011, accounted for 58.0 percent of the decline in net loans and leases over the year. Excluding the impact of the CAD loan portfolio, net loans and leases declined $196.4 million, or 2.4 percent, for the 12 months ended December 31, 2011.

Time deposits, which decreased $648.5 million, or 17.8 percent, for the 12 months ended December 31, 2011, were offset partially by significant growth in noninterest bearing demand deposits, which increased $209.7 million, or 10.2 percent, over the year. Additionally, savings deposits increased $128.7 million, or 14.9 percent, for the 12 months ended December 31, 2011, while interest bearing demand deposits decreased $224.7 million, or 4.6 percent. Core deposits represented 87 percent of total deposits at December 31, 2011, compared with 85 percent of total deposits at December 31, 2010. Approximately $1.1 billion of time deposits are scheduled to mature during the first half of 2012 at a weighted average rate of 1.26 percent.

Provision for Credit Losses and Allowance for Credit Losses

During the fourth quarter of 2011, the Company’s management concluded that the previously reported material weakness in internal control over financial reporting, which resulted from a control deficiency in the Company’s credit grading process, has been remediated. Patterson added, “The successful remediation of the previously reported material weakness represents the completion of a great deal of work in improving our processes. Importantly, the hard work applied to address our deficiencies will provide stronger credit processes for our business in the future.”

For the fourth quarter of 2011, the provision for credit losses was $19.3 million, compared with $43.3 million for the fourth quarter of 2010 and $25.1 million for the third quarter of 2011. The decrease in the provision for credit losses reflected a decline in the formation of new non-accrual loans, including fewer loans being identified for impairment, continued stabilization in values of previously impaired loans, improved past dues, and stable charge-offs. Annualized net charge-offs were 1.06 percent of average loans and leases for the fourth quarter of 2011, compared with 2.19 percent for the fourth quarter of 2010 and 1.01 percent for the third quarter of 2011.

NPLs were $322.3 million, or 3.63 percent of net loans and leases, at December 31, 2011 compared with $394.4 million, or 4.23 percent of net loans and leases, at December 31, 2010 and $362.8 million, or 4.01 percent of net loans and leases, at September 30, 2011. The allowance for credit losses was 2.20 percent of net loans and leases at December 31, 2011 compared with 2.11 percent at December 31, 2010 and 2.21 percent at September 30, 2011.

 

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BXS Announces Fourth Quarter Results

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January 17, 2012

 

NPLs at December 31, 2011 consisted primarily of $276.8 million of nonaccrual loans, compared with $314.5 million of nonaccrual loans at September 30, 2011. NPLs at December 31, 2011 also included $3.4 million of loans 90 days or more past due and still accruing, compared with $7.4 million of such loans at September 30, 2011, and included restructured loans still accruing of $42.0 million at December 31, 2011, compared with $41.0 million of such loans at September 30, 2011. Loans and leases 30 to 89 days past due were $37.5 million at December 31, 2011 compared with $54.1 million of such loans at September 30, 2011.

Included in the reduction of nonaccrual loans during the fourth quarter of 2011 were payments received on nonaccrual loans of $15.1 million. Patterson added, “While we have not had a significant return of nonaccrual loans to performing status, we are encouraged that the trend of increasing nonaccrual loans paying as agreed should provide an opportunity to return certain NPLs to performing status in the future.”

At December 31, 2011, $88.2 million of NPLs were residential CAD loans, $47.0 million were other CAD loans, $61.8 million were commercial real estate mortgage loans and $52.6 million were consumer mortgages. NPLs from all other loan types totaled $72.6 million at December 31, 2011. Included in nonaccrual loans at December 31, 2011 were $141.2 million of loans, or 51.0 percent of total nonaccrual loans, that were paying as agreed. These loans were generally placed on nonaccrual status because the collateral values were less than the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or will be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values. Such loans are generally deemed to be impaired, with a specific reserve established for the difference in the balance owed and the collateral values.

Noninterest Revenue

Noninterest revenue was $65.3 million for the fourth quarter of 2011, compared with $74.0 million for the fourth quarter of 2010 and $62.1 million for the third quarter of 2011. These results included negative MSR valuation adjustments of $1.0 million and $11.7 million for the fourth quarter of 2011 and the third quarter of 2011, respectively, and a positive MSR valuation adjustment of $8.9 million for the fourth quarter of 2010.

Excluding the MSR valuation adjustments, net mortgage lending revenue was $9.9 million for the fourth quarter of 2011, compared with $9.2 million for the fourth quarter of 2010 and $10.2 million for the third quarter of 2011. Mortgage origination volume for the fourth quarter of 2011 was $389.6 million, compared with $451.9 million for the fourth quarter of 2010 and $374.8 million for the third quarter of 2011.

Credit and debit card fees decreased $2.2 million, or 21.8 percent, for the fourth quarter of 2011 from the fourth quarter of 2010 and $5.2 million, or 40.0 percent, from the third quarter of 2011. Service charges increased $0.6 million, or 3.3 percent, for the comparable quarters and were flat on a sequential quarter basis. Insurance commissions rose $1.4 million, or 7.8 percent, for the comparable quarters and declined $2.6 million, or 11.8 percent, on a sequential quarter basis.

 

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BXS Announces Fourth Quarter Results

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January 17, 2012

 

Noninterest Expense

Noninterest expense for the fourth quarter of 2011 was $135.9 million, compared with $123.4 million for the fourth quarter of 2010 and $130.7 million for the third quarter of 2011. Results for the third quarter of 2011 included a one-time expense of $3.1 million related to the closure of 22 branch offices under the Company’s branch optimization project.

Foreclosed property expense increased to $10.8 million for the fourth quarter of 2011 from $6.1 million for the fourth quarter of 2010 and $6.1 million for the third quarter of 2011. Deposit insurance assessments decreased to $5.7 million for the fourth quarter of 2011 from $5.9 million for the fourth quarter of 2010 and increased from $3.8 million for the third quarter of 2011.

Capital Management

BancorpSouth remains a “well capitalized” financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 11.77 percent at December 31, 2011 and total risk based capital of 13.03 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for “well capitalized” classification. The Company’s equity capitalization is 100 percent common stock. BancorpSouth’s ratio of shareholders’ equity to assets increased to 9.72 percent at December 31, 2011, compared with 8.98 percent at December 31, 2010 and 9.60 percent at September 30, 2011. The ratio of tangible shareholders’ equity to tangible assets increased to 7.67 percent at December 31, 2011, compared with 7.00 percent at December 31, 2010 and 7.58 percent at September 30, 2011.

Summary

Patterson concluded, “Our fourth quarter results indicate improvement achieved in our credit costs and other credit metrics, which reflect progress towards problem asset resolution. We are focused on continuing to improve asset quality. However, we remain cautious about the impact of the current economic environment on our near-term results. Despite this difficult environment, we continue to be pleased with the performance of our core operations. We have successfully maintained our net interest margin and have steadily increased revenue from our noninterest lines of business.

“BancorpSouth remains a well capitalized financial institution, built on customer service, relationships, and a comprehensive range of financial products. We have continued to work to deepen relationships with existing clients and to develop new relationships through our deposit offerings, mortgage lending, insurance, and other products and services. We believe these attributes and efforts will allow us to continue to build our prospects for long-term growth and increased shareholder value.”

 

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BXS Announces Fourth Quarter Results

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January 17, 2012

 

Conference Call

BancorpSouth will conduct a conference call to discuss its fourth quarter 2011 results on January 24, 2012, at 10:00 a.m. (Central Time). Investors may listen via the Internet by accessing BancorpSouth’s website at http://www.bancorpsouth.com. A replay of the conference call will be available at BancorpSouth’s website for at least two weeks following the call.

Forward-Looking Statements

Certain statements contained in this news release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could” or “intend.” These forward-looking statements include, without limitation, statements relating to our ability to return nonaccrual loans to performing status, the strength of our credit processes, our ability to enhance prospects for long-term growth and increased shareholder value, 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 party 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.

 

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BXS Announces Fourth Quarter Results

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January 17, 2012

 

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.0 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 286 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.

 

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BXS Announces Fourth Quarter Results

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January 17, 2012

 

BancorpSouth, Inc.

Selected Financial Data

 

     Three Months Ended
December 31,		     Twelve Months Ended
December 31,		  
(Dollars in thousands, except per share amounts)    2011     2010     2011     2010  

Earnings Summary:

         

Net interest revenue

    $ 107,489      $ 110,253      $ 434,913      $ 441,142   

Provision for credit losses

      19,250        43,293        130,081        204,016   

Noninterest revenue

      65,335        73,974        270,845        264,144   

Noninterest expense

      135,856        123,447        533,633        487,033   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      17,718        17,487        42,044        14,237   

Income tax provision (benefit)

      4,415        1,641        4,475        (8,705 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 13,303      $ 15,846      $ 37,569      $ 22,942   
  

 

 

    

 

 

    

 

 

    

 

 

  

Earning per share: Basic

    $ 0.16      $ 0.19      $ 0.45      $ 0.28   
  

 

 

    

 

 

    

 

 

    

 

 

  

    Diluted

    $ 0.16      $ 0.19      $ 0.45      $ 0.27   
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance sheet data at December 31:

         

Total assets

        $ 12,995,851      $ 13,615,010   

Total earning assets

          11,770,950        12,458,055   

Loans and leases, net of unearned income

          8,870,311        9,333,107   

Allowance for credit losses

          195,118        196,913   

Total deposits

          10,955,189        11,490,021   

Common shareholders’ equity

          1,262,912        1,222,244   

Book value per share

          15.13        14.64   

Average balance sheet data:

         

Total assets

    $ 13,046,779      $ 13,559,038      $ 13,280,047      $ 13,304,836   

Total earning assets

      11,918,358        12,510,705        12,143,391        12,223,933   

Loans and leases, net of unearned interest

      8,954,229        9,418,687        9,159,431        9,621,529   

Total deposits

      11,017,231        11,292,903        11,251,406        11,107,445   

Common shareholders’ equity

      1,268,905        1,225,514        1,240,768        1,241,321   

Non-performing assets at December 31:

         

Non-accrual loans and leases

        $ 276,798      $ 347,499   

Loans and leases 90+ days past due, still accruing

          3,434        8,500   

Restructured loans and leases, still accruing

          42,018        38,376   

Other real estate owned

          173,805        133,412   
      

 

 

    

 

 

  

Total non-performing assets

          496,055        527,787   

Net charge-offs as a percentage of average loans (annualized)

      1.06 %      2.19 %      1.44 %      1.90 % 

Performance ratios (annualized):

         

Return on average assets

      0.40 %      0.46 %      0.28 %      0.17 % 

Return on common equity

      4.16 %      5.13 %      3.03 %      1.85 % 

Total shareholders’ equity to total assets

      9.72 %      8.98 %      9.72 %      8.98 % 

Tangible shareholders’ equity to tangible assets

      7.67 %      7.00 %      7.67 %      7.00 % 

Net interest margin

      3.69 %      3.59 %      3.69 %      3.70 % 

Average shares outstanding - basic

      83,488,102        83,435,268        83,486,296        83,425,183   

Average shares outstanding - diluted

      83,503,611        83,471,420        83,509,759        83,515,040   

Cash dividends per share

    $ 0.01      $ 0.22      $ 0.14      $ 0.88   

Tier I capital

          11.77 %(1)      10.61 % 

Total capital

          13.03 %(1)      11.87 % 

Tier I leverage capital

          8.85 %(1)      8.07 % 

 

(1) 

Estimated as of earnings release date

 

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BXS Announces Fourth Quarter Results

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January 17, 2012

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

 

     Dec-11     Sep-11      Jun-11      Mar-11     Dec-10  
     (Dollars in thousands)  

Assets

             

Cash and due from banks

    $ 195,681      $ 161,876       $ 166,761       $ 146,989      $ 99,916   

Interest bearing deposits with other banks

      303,663        338,250         304,344         102,312        172,170   

Held-to-maturity securities, at amortized cost

      —          —           —           1,667,203        1,613,019   

Available-for-sale securities, at fair value

      2,513,518        2,481,555         2,560,824         1,145,463        1,096,062   

Federal funds sold and securities purchased under agreement to resell

      —          —           —           150,000        150,000   

Loans and leases

      8,911,258        9,096,928         9,255,879         9,255,609        9,376,351   

Less: Unearned income

      40,947        41,023         41,326         41,773        43,244   

Allowance for credit losses

      195,118        199,686         197,627         198,333        196,913   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Net loans and leases

      8,675,193        8,856,219         9,016,926         9,015,503        9,136,194   

Loans held for sale

      83,458        100,687         70,519         56,876        93,697   

Premises and equipment, net

      323,383        323,285         328,075         329,862        332,890   

Accrued interest receivable

      51,266        53,338         55,525         61,105        61,025   

Goodwill

      271,297        271,297         271,297         271,297        270,097   

Bank owned life insurance

      200,085        197,945         197,028         194,988        194,064   

Other real estate owned

      173,805        162,686         151,204         136,412        133,412   

Other assets

      204,502        251,380         244,547         269,228        262,464   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total Assets

    $ 12,995,851      $ 13,198,518       $ 13,367,050       $ 13,547,238      $ 13,615,010   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Liabilities

             

Deposits:

             

Demand: Noninterest bearing

    $ 2,269,799      $ 2,198,535       $ 2,096,655       $ 2,027,990      $ 2,060,145   

      Interest bearing

      4,706,825        4,736,858         4,939,553         5,023,073        4,931,518   

Savings

      991,702        968,277         944,993         932,574        863,034   

Other time

      2,986,863        3,159,563         3,327,262         3,480,477        3,635,324   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total deposits

      10,955,189        11,063,233         11,308,463         11,464,114        11,490,021   

Federal funds purchased and securities sold under agreement to repurchase

      373,933        449,501         426,097         421,782        440,593   

Short-term Federal Home Loan Bank borrowings and other short-term borrowing

      1,500        1,500         703         2,715        2,727   

Accrued interest payable

      8,644        10,017         11,348         13,238        14,336   

Junior subordinated debt securities

      160,312        160,312         160,312         160,312        160,312   

Long-term Federal Home Loan Bank borrowings

      33,500        33,500         35,000         110,000        110,000   

Other liabilities

      199,861        213,702         178,424         164,016        174,777   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total Liabilities

      11,732,939        11,931,765         12,120,347         12,336,177        12,392,766   

Shareholders’ Equity

             

Common stock

      208,709        208,722         208,722         208,704        208,704   

Capital surplus

      227,567        227,006         226,362         225,597        224,976   

Accumulated other comprehensive income (loss)

      (2,261 )      14,595         6,289         (16,579 )      (14,453 ) 

Retained earnings

      828,897        816,430         805,330         793,339        803,017   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total Shareholders’ Equity

      1,262,912        1,266,753         1,246,703         1,211,061        1,222,244   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total Liabilities & Shareholders’ Equity

    $ 12,995,851      $ 13,198,518       $ 13,367,050       $ 13,547,238      $ 13,615,010   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

 

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BXS Announces Fourth Quarter Results

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January 17, 2012

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

 

     Dec-11      Sep-11      Jun-11     Mar-11     Dec-10  
     (Dollars in thousands)  

Assets

             

Cash and due from banks

    $ 151,004       $ 148,409       $ 151,194      $ 156,329      $ 176,979   

Interest bearing deposits with other banks

      384,231         309,146         187,901        167,271        282,396   

Held-to-maturity securities, at amortized cost

      —           —           1,097,562        1,653,284        1,436,222   

Available-for-sale securities, at fair value

      2,509,943         2,529,482         1,609,720        1,085,131        996,006   

Federal funds sold and securities purchased under agreement to resell

      2,174         —           38,736        150,000        209,511   

Loans and leases

      8,995,035         9,179,730         9,291,434        9,342,939        9,461,161   

Less: Unearned income

      40,806         41,316         42,307        42,954        42,474   

Allowance for credit losses

      208,005         205,209         212,968        218,107        215,278   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net loans and leases

      8,746,224         8,933,205         9,036,159        9,081,878        9,203,409   

Loans held for sale

      67,781         62,025         44,704        39,098        91,262   

Premises and equipment, net

      322,544         326,800         328,829        330,920        333,516   

Accrued interest receivable

      49,256         53,122         54,570        58,450        58,591   

Goodwill

      271,297         271,297         271,297        270,510        270,097   

Bank owned life insurance

      14,558         14,642         14,189        13,217        9,836   

Other real estate owned

      164,841         152,052         138,827        129,781        98,944   

Other assets

      362,926         374,475         391,872        403,894        392,269   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total Assets

    $ 13,046,779       $ 13,174,655       $ 13,365,560      $ 13,539,763      $ 13,559,038   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Liabilities

             

Deposits:

             

Demand: Noninterest bearing

    $ 2,248,904       $ 2,147,707       $ 2,018,197      $ 1,893,720      $ 1,975,318   

      Interest bearing

      4,714,059         4,789,462         4,977,764        5,153,063        4,740,734   

Savings

      975,892         957,871         941,169        897,312        831,805   

Other time

      3,078,376         3,246,332         3,418,741        3,553,543        3,745,046   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total deposits

      11,017,231         11,141,372         11,355,871        11,497,638        11,292,903   

Federal funds purchased and securities sold under agreement to repurchase

      430,968         457,640         423,949        430,930        475,760   

Short-term Federal Home Loan Bank borrowings and other short-term borrowing

      1,500         486         1,641        2,719        147,839   

Accrued interest payable

      10,617         12,108         13,558        14,873        16,811   

Junior subordinated debt securities

      160,312         160,312         160,312        160,312        160,312   

Long-term Federal Home Loan Bank borrowings

      33,500         34,984         89,395        110,000        110,000   

Other liabilities

      123,746         115,938         98,553        103,892        129,899   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total Liabilities

      11,777,874         11,922,840         12,143,279        12,320,364        12,333,524   

Shareholders’ Equity

             

Common stock

      208,722         208,722         208,715        208,704        208,704   

Capital surplus

      227,201         226,582         225,912        225,162        224,357   

Accumulated other comprehensive income (loss)

      8,927         6,379         (10,040 )      (14,346 )      (3,331 ) 

Retained earnings

      824,055         810,132         797,694        799,879        795,784   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total Shareholders’ Equity

      1,268,905         1,251,815         1,222,281        1,219,399        1,225,514   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total Liabilities & Shareholders’ Equity

    $ 13,046,779       $ 13,174,655       $ 13,365,560      $ 13,539,763      $ 13,559,038   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Fourth Quarter Results

Page 11

January 17, 2012

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

 

     Quarter Ended     Year To Date  
     Dec-11      Sep-11     Jun-11      Mar-11     Dec-10     Dec-11      Dec-10  

INTEREST REVENUE:

                  

Loans and leases

    $ 112,566       $ 114,260      $ 116,892       $ 117,358      $ 121,672      $ 461,076       $ 496,782   

Deposits with other banks

      252         203        124         122        222        701         355   

Federal funds sold and securities purchased under agreement to resell

      1         —          35         131        168        167         606   

Held-to-maturity securities:

                  

Taxable

      —           —          5,066         8,014        8,490        13,080         36,278   

Tax-exempt

      —           —          2,291         3,347        2,952        5,638         10,409   

Available-for-sale securities:

                  

Taxable

      11,781         13,172        10,451         8,585        7,836        43,989         32,033   

Tax-exempt

      4,158         4,130        1,871         824        815        10,983         3,275   

Loans held for sale

      635         632        505         447        902        2,219         3,024   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total interest revenue

      129,393         132,397        137,235         138,828        143,057        537,853         582,762   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

INTEREST EXPENSE:

                  

Interest bearing demand

      4,737         5,324        6,039         6,546        7,462        22,646         35,187   

Savings

      747         828        810         826        891        3,211         3,576   

Other time

      13,104         14,837        16,285         17,483        19,827        61,709         83,999   

Federal funds purchased and securities sold under agreement to repurchase

      76         95        135         152        189        458         841   

FHLB borrowings

      367         375        1,194         1,523        1,569        3,459         6,545   

Junior subordinated debt

      2,871         2,861        2,860         2,859        2,864        11,451         11,461   

Other

      2         2        —           2        2        6         11   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total interest expense

      21,904         24,322        27,323         29,391        32,804        102,940         141,620   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net interest revenue

      107,489         108,075        109,912         109,437        110,253        434,913         441,142   

Provision for credit losses

      19,250         25,112        32,240         53,479        43,293        130,081         204,016   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net interest revenue, after provision for credit losses

      88,239         82,963        77,672         55,958        66,960        304,832         237,126   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

NONINTEREST REVENUE:

                  

Mortgage lending

      8,928         (1,443 )      2,003         7,581        18,126        17,069         29,745   

Credit card, debit card and merchant fees

      7,783         12,981        11,263         10,346        9,951        42,373         37,663   

Service charges

      17,412         17,334        16,556         15,368        16,854        66,670         70,690   

Trust income

      3,348         2,854        2,850         3,134        3,072        12,186         11,149   

Security gains (losses), net

      18         2,047        10,045         17        (470 )      12,127         2,569   

Insurance commissions

      19,416         22,012        22,941         22,549        18,013        86,918         82,172   

Other

      8,430         6,270        9,486         9,316        8,428        33,502         30,156   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total noninterest revenue

      65,335         62,055        75,144         68,311        73,974        270,845         264,144   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

NONINTEREST EXPENSE:

                  

Salaries and employee benefits

      70,512         71,851        70,142         70,375        65,980        282,880         271,688   

Occupancy, net of rental income

      10,315         11,144        10,232         10,671        10,668        42,362         43,008   

Equipment

      5,108         5,346        5,595         5,658        5,459        21,707         22,598   

Deposit insurance assessments

      5,674         3,781        6,436         5,425        5,895        21,316         19,259   

Prepayment penalty on FHLB borrowings

      —           —          9,778         —          —          9,778         —     

Other

      44,247         38,576        34,886         37,881        35,445        155,590         130,480   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Total noninterest expenses

      135,856         130,698        137,069         130,010        123,447        533,633         487,033   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Income (loss) before income taxes

      17,718         14,320        15,747         (5,741 )      17,487        42,044         14,237   

Income tax expense (benefit)

      4,415         2,386        2,921         (5,247 )      1,641        4,475         (8,705 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income (loss)

    $ 13,303       $ 11,934      $ 12,826         ($494 )    $ 15,846      $ 37,569       $ 22,942   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Net income (loss) per share: Basic

    $ 0.16       $ 0.14      $ 0.15         ($0.01 )    $ 0.19      $ 0.45       $ 0.28   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

        Diluted

    $ 0.16       $ 0.14      $ 0.15         ($0.01 )    $ 0.19      $ 0.45       $ 0.27   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

 

- MORE -

BXS Announces Fourth Quarter Results

Page 12

January 17, 2012

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended  
     Dec-11     Sep-11     Jun-11     Mar-11     Dec-10  

LOAN AND LEASE PORTFOLIO:

           

Commercial and industrial

    $ 1,473,728      $ 1,503,391      $ 1,526,686      $ 1,484,223      $ 1,491,183   

Real estate

           

Consumer mortgages

      1,945,190        1,966,124        1,971,499        1,958,367        1,951,563   

Home equity

      514,362        523,030        531,787        531,406        543,272   

Agricultural

      239,487        249,715        255,310        250,393        252,292   

Commercial and industrial-owner occupied

      1,301,575        1,329,644        1,366,734        1,316,824        1,331,473   

Construction, acquisition and development

      908,362        976,694        1,060,675        1,117,335        1,174,743   

Commercial

      1,754,022        1,772,003        1,764,648        1,831,226        1,816,951   

Credit cards

      106,281        103,232        101,955        100,732        106,345   

All other

      627,304        632,072        635,259        623,330        665,285   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

    $ 8,870,311      $ 9,055,905      $ 9,214,553      $ 9,213,836      $ 9,333,107   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

ALLOWANCE FOR CREDIT LOSSES:

           

Balance, beginning of period

    $ 199,686      $ 197,627      $ 198,333      $ 196,913      $ 205,081   

Loans and leases charged off:

           

Commercial and industrial

      (1,677 )      (1,295 )      (5,556 )      (8,809 )      (1,782 ) 

Real estate

           

Consumer mortgages

      (2,953 )      (2,344 )      (1,629 )      (3,260 )      (5,291 ) 

Home equity

      (1,667 )      (1,712 )      (1,391 )      (1,082 )      (1,138 ) 

Agricultural

      (110 )      (2,345 )      (373 )      (592 )      (487 ) 

Commercial and industrial-owner occupied

      (1,136 )      (4,222 )      (3,228 )      (1,716 )      (1,659 ) 

Construction, acquisition and development

      (10,539 )      (7,697 )      (16,783 )      (32,343 )      (34,989 ) 

Commercial

      (6,858 )      (4,467 )      (1,597 )      (4,514 )      (6,327 ) 

Credit cards

      (706 )      (760 )      (725 )      (881 )      (990 ) 

All other

      (794 )      (770 )      (4,971 )      (553 )      (2,093 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans charged off

      (26,440 )      (25,612 )      (36,253 )      (53,750 )      (54,756 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Recoveries:

           

Commercial and industrial

      446        348        589        184        707   

Real estate

           

Consumer mortgages

      263        485        220        143        423   

Home equity

      43        51        46        45        60   

Agricultural

      76        —          45        2        4   

Commercial and industrial-owner occupied

      100        99        21        173        195   

Construction, acquisition and development

      971        923        1,493        564        776   

Commercial

      340        300        392        13        707   

Credit cards

      168        141        239        255        143   

All other

      215        212        262        312        280   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total recoveries

      2,622        2,559        3,307        1,691        3,295   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net charge-offs

      (23,818 )      (23,053 )      (32,946 )      (52,059 )      (51,461 ) 

Provision charged to operating expense

      19,250        25,112        32,240        53,479        43,293   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance, end of period

    $ 195,118      $ 199,686      $ 197,627      $ 198,333      $ 196,913   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Average loans for period

    $ 8,954,229      $ 9,138,414      $ 9,249,127      $ 9,300,029      $ 9,418,687   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio:

           

Net charge-offs to average loans (annualized)

      1.06 %      1.01 %      1.42 %      2.24 %      2.19 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Fourth Quarter Results

Page 13

January 17, 2012

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended  
     Dec-11     Sep-11     Jun-11     Mar-11     Dec-10  

NON-PERFORMING ASSETS

           

NON-PERFORMING LOANS AND LEASES:

           

Nonaccrual Loans and Leases

           

Commercial and industrial

    $ 12,260      $ 11,122      $ 9,337      $ 14,655      $ 13,075   

Real estate

           

Consumer mortgages

      47,878        44,100        34,174        36,025        34,021   

Home equity

      2,036        2,634        1,232        1,543        811   

Agricultural

      4,179        6,254        8,526        7,597        7,589   

Commercial and industrial-owner occupied

      33,112        26,977        26,387        24,638        20,338   

Construction, acquisition and development

      133,110        171,566        200,434        224,847        211,547   

Commercial

      40,616        49,500        48,571        58,945        57,766   

Credit cards

      594        551        546        617        720   

All other

      3,013        1,775        1,869        1,859        1,632   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total nonaccrual loans and leases

      276,798        314,479        331,076        370,726        347,499   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Loans and Leases 90+ Days Past Due, Still Accruing:

           

Commercial and industrial

      12        1,846        118        501        675   

Real estate

           

Consumer mortgages

      2,974        4,136        2,482        3,152        6,521   

Home equity

      —          134        242        139        173   

Agricultural

      —          131        —          7        123   

Commercial and industrial-owner occupied

      —          42        —          255        20   

Construction, acquisition and development

      —          290        432        19        197   

Commercial

      —          106        19        7        —     

Credit cards

      299        257        299        240        330   

All other

      149        412        388        509        461   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans and leases 90+ days past due, still accruing

      3,434        7,354        3,980        4,829        8,500   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Restructured Loans and Leases, Still Accruing

      42,018        40,966        44,786        49,472        38,376   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-performing loans and leases

      322,250        362,799        379,842        425,027        394,375   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

OTHER REAL ESTATE OWNED:

      173,805        162,686        151,204        136,412        133,412   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Non-performing Assets

    $ 496,055      $ 525,485      $ 531,046      $ 561,439      $ 527,787   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Additions to Nonaccrual Loans and Leases During the Quarter

    $ 39,474      $ 60,799      $ 50,427      $ 111,241      $ 131,140   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Loans and Leases 30-89 Days Past Due, Still Accruing:

           

Commercial and industrial

    $ 8,065      $ 9,759      $ 7,903      $ 8,407      $ 13,654   

Real estate

           

Consumer mortgages

      15,864        20,144        18,621        17,136        19,147   

Home equity

      2,037        2,066        2,916        2,492        1,906   

Agricultural

      339        1,485        2,901        818        1,122   

Commercial and industrial-owner occupied

      2,154        7,348        2,786        4,369        10,183   

Construction, acquisition and development

      2,714        4,469        4,939        8,047        6,758   

Commercial

      3,292        5,136        4,091        7,090        3,823   

Credit cards

      802        851        785        969        1,023   

All other

      2,280        2,832        3,005        2,192        2,766   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Loans and Leases 30-89 days past due, still accruing

    $ 37,547      $ 54,090      $ 47,947      $ 51,520      $ 60,382   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Credit Quality Ratios:

           

Provision for credit losses to average loans and leases (annualized)

      0.86 %      1.10 %      1.39 %      2.30 %      1.84 % 

Allowance for credit losses to net loans and leases

      2.20 %      2.21 %      2.14 %      2.15 %      2.11 % 

Allowance for credit losses to non-performing assets

      39.33 %      38.00 %      37.21 %      35.33 %      37.31 % 

Allowance for credit losses to non-performing loans and leases

      60.55 %      55.04 %      52.03 %      46.66 %      49.93 % 

Non-performing loans and leases to net loans and leases

      3.63 %      4.01 %      4.12 %      4.61 %      4.23 % 

Non-performing assets to net loans and leases

      5.59 %      5.80 %      5.76 %      6.09 %      5.65 % 

 

- MORE -

BXS Announces Fourth Quarter Results

Page 14

January 17, 2012

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended  
     Dec-11     Sep-11     Jun-11     Mar-11     Dec-10  

REAL ESTATE CONSTRUCTION, ACQUISITION AND DEVELOPMENT (“CAD”) PORTFOLIO:

           

Outstanding Balance

           

Multi-family construction

    $ 2,138      $ 10,349      $ 19,116      $ 21,051      $ 27,992   

One-to-four family construction

      169,827        181,445        198,809        212,435        218,554   

Recreation and all other loans

      67,235        61,084        66,366        63,686        48,375   

Commercial construction

      130,124        140,570        160,834        155,402        173,557   

Commercial acquisition and development

      197,044        206,516        222,460        244,950        250,658   

Residential acquisition and development

      341,994        376,730        393,090        419,811        455,607   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total outstanding balance

    $ 908,362      $ 976,694      $ 1,060,675      $ 1,117,335      $ 1,174,743   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Nonaccrual CAD Loans

           

Multi-family construction

    $ 1,067      $ —        $ 9,174      $ 8,352      $ 12,517   

One-to-four family construction

      14,690        17,937        24,537        33,570        23,794   

Recreation and all other loans

      436        712        774        708        481   

Commercial construction

      5,235        10,159        16,618        20,889        34,710   

Commercial acquisition and development

      23,968        31,862        37,207        47,200        29,658   

Residential acquisition and development

      87,714        110,896        112,124        114,128        110,387   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total nonaccrual CAD loans

      133,110        171,566        200,434        224,847        211,547   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CAD Loans 90+ Days Past Due, Still Accruing:

           

Multi-family construction

      —          —          —          —          —     

One-to-four family construction

      —          211        —          —          —     

Recreation and all other loans

      —          —          2        2        —     

Commercial construction

      —          —          —          —          195   

Commercial acquisition and development

      —          —          —          —          —     

Residential acquisition and development

      —          79        430        17        2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total CAD loans 90+ days past due, still accruing

      —          290        432        19        197   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Restructured CAD Loans, Still Accruing

           

Multi-family construction

      —          —          —          —          —     

One-to-four family construction

      318        321        1,697        113        63   

Recreation and all other loans

      852        24        24        —          —     

Commercial construction

      —          —          —          —          —     

Commercial acquisition and development

      433        1,415        1,415        834        604   

Residential acquisition and development

      446        410        2,274        3,408        1,495   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total restructured CAD loans, still accruing

      2,049        2,170        5,410        4,355        2,162   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Non-performing CAD loans

    $ 135,159      $ 174,026      $ 206,276      $ 229,221      $ 213,906   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CAD NPL as a % of Outstanding CAD Balance

           

Multi-family construction

      49.9 %      —          48.0 %      39.7 %      44.7 % 

One-to-four family construction

      8.8 %      10.2 %      13.2 %      15.9 %      10.9 % 

Recreation and all other loans

      1.9 %      1.2 %      1.2 %      1.1 %      1.0 % 

Commercial construction

      4.0 %      7.2 %      10.3 %      13.4 %      20.1 % 

Commercial acquisition and development

      12.4 %      16.1 %      17.4 %      19.6 %      12.1 % 

Residential acquisition and development

      25.8 %      29.6 %      29.2 %      28.0 %      24.6 % 

Total CAD NPL as a % of outstanding CAD balance

      14.9 %      17.8 %      19.4 %      20.5 %      18.2 % 

 

- MORE -

BXS Announces Fourth Quarter Results

Page 15

January 17, 2012

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

     December 31, 2011  
     Pass      Special
Mention		      Substandard      Doubtful      Loss      Impaired      Total  

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

                     

Commercial and industrial

    $ 1,415,731       $ 4,947       $ 43,549       $ 1,263       $ 405       $ 7,833       $ 1,473,728   

Real estate

                     

Consumer mortgages

      1,742,593         17,914         148,267         4,434         189         31,793         1,945,190   

Home equity

      492,235         2,775         17,050         1,134         493         675         514,362   

Agricultural

      213,280         3,795         19,296         20         —           3,096         239,487   

Commercial and industrial-owner occupied

      1,167,220         18,280         90,778         496         —           24,801         1,301,575   

Construction, acquisition and development

      619,497         23,429         136,412         845         —           128,179         908,362   

Commercial

      1,501,196         37,409         179,295         —           —           36,122         1,754,022   

Credit cards

      105,867         41         175         188         10         —           106,281   

All other

      587,970         16,104         20,263         470         73         2,424         627,304   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total loans

    $ 7,845,589       $ 124,694       $ 655,085       $ 8,850       $ 1,170       $ 234,923       $ 8,870,311   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

- MORE -

BXS Announces Fourth Quarter Results

Page 16

January 17, 2012

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

     As of  
     Dec-11     Sep-11     Jun-11     Mar-11     Dec-10  

Unpaid principal balance of impaired loans

    $ 287,099      $ 342,839      $ 374,760      $ 423,497      $ 345,377   

Cumulative charge-offs on impaired loans

      52,176        62,950        71,103        84,676        71,972   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Impaired nonaccrual loan and lease outstanding balance

      234,923        279,889        303,657        338,821        273,405   

Other non-accrual loans and leases not impaired

      41,875        34,590        27,419        31,905        74,094   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-accrual loans and leases

    $ 276,798      $ 314,479      $ 331,076      $ 370,726      $ 347,499   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Allowance for impaired loans

      39,708        38,657        46,810        49,419        40,719   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Nonaccrual loans and leases, net of specific reserves

    $ 237,090      $ 275,822      $ 284,266      $ 321,307      $ 306,780   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Loans and leases 90+ days past due, still accruing

      3,434        7,354        3,980        4,829        8,500   

Restructured loans and leases, still accruing

      42,018        40,966        44,786        49,472        38,376   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-performing loans and leases

    $ 322,250      $ 362,799      $ 379,842      $ 425,027      $ 394,375   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Allowance for impaired loans

    $ 39,708      $ 38,657      $ 46,810      $ 49,419      $ 40,719   

Allowance for all other loans and leases

      155,410        161,029        150,817        148,914        156,194   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total allowance for credit losses

    $ 195,118      $ 199,686      $ 197,627      $ 198,333      $ 196,913   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Outstanding balance of impaired loans

    $ 234,923      $ 279,889      $ 303,657      $ 338,821      $ 273,405   

Allowance for impaired loans

      39,708        38,657        46,810        49,419        40,719   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net book value of impaired loans

    $ 195,215      $ 241,232      $ 256,847      $ 289,402      $ 232,686   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net book value of impaired loans as a % of unpaid principal balance

      68 %      70 %      69 %      68 %      67 % 

Coverage of other non-accrual loans and leases not impaired by the allowance for all other loans and leases

      371 %      466 %      550 %      467 %      211 % 

Coverage of non-performing loans and leases not impaired by the allowance for all other loans and leases

      178 %      194 %      198 %      173 %      129 % 

 

- MORE -

BXS Announces Fourth Quarter Results

Page 17

January 17, 2012

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)

 

    Alabama
and Florida
Panhandle		     Arkansas     Mississippi     Missouri     Greater
Memphis
Area		     Tennessee     Texas and
Louisiana		     Other     Total  

LOAN AND LEASE PORTFOLIO:

                  

Commercial and industrial

   $ 63,583      $ 188,329      $ 312,364      $ 51,291      $ 23,745      $ 80,094      $ 258,225      $ 496,097      $ 1,473,728   

Real estate

                  

Consumer mortgages

     111,455        272,857        756,389        56,808        86,576        162,604        427,955        70,546        1,945,190   

Home equity

     58,991        42,250        174,632        26,930        70,034        76,361        63,298        1,866        514,362   

Agricultural

     6,354        71,592        71,787        4,047        9,601        13,163        57,836        5,107        239,487   

Commercial and industrial-owner occupied

     115,133        167,935        455,700        67,055        99,394        98,860        248,107        49,391        1,301,575   

Construction, acquisition and development

     103,594        80,121        259,551        51,432        98,948        98,865        196,490        19,361        908,362   

Commercial

     199,844        346,534        352,754        223,849        115,783        101,068        359,989        54,201        1,754,022   

Credit cards

     —          —          —          —          —          —          —          106,281        106,281   

All other

     29,846        90,905        201,067        4,443        54,846        47,412        89,417        109,368        627,304   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

   $ 688,800      $ 1,260,523      $ 2,584,244      $ 485,855      $ 558,927      $ 678,427      $ 1,701,317      $ 912,218      $ 8,870,311   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CAD PORTFOLIO:

                  

Multi-family construction

   $ —        $ —        $ 11      $ 1,067      $ —        $ 664      $ 350      $ 46      $ 2,138   

One-to-four family construction

     27,514        13,127        46,874        7,266        9,593        30,212        31,621        3,620        169,827   

Recreation and all other loans

     1,685        11,071        31,484        567        2,670        1,075        17,250        1,433        67,235   

Commercial construction

     12,351        9,321        40,453        2,694        11,364        20,781        30,386        2,774        130,124   

Commercial acquisition and development

     13,167        19,120        54,052        15,169        31,688        18,534        41,115        4,199        197,044   

Residential acquisition and development

     48,877        27,482        86,677        24,669        43,633        27,599        75,768        7,289        341,994   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total CAD loans

   $ 103,594      $ 80,121      $ 259,551      $ 51,432      $ 98,948      $ 98,865      $ 196,490      $ 19,361      $ 908,362   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NON-PERFORMING LOANS AND LEASES:

                  

Commercial and industrial

   $ 2,786      $ 2,908      $ 529      $ 2,004      $ 521      $ 196      $ 2,725      $ 1,886      $ 13,555   

Real estate

                  

Consumer mortgages

     6,257        4,750        15,105        4,296        2,399        6,465        6,564        6,788        52,624   

Home equity

     485        16        419        —          407        707        —          2        2,036   

Agricultural

     —          315        1,079        1,317        1,307        258        —          1        4,277   

Commercial and industrial-owner occupied

     8,467        8,129        7,530        4,163        4,889        4,838        3,825        163        42,004   

Construction, acquisition and development

     24,581        6,397        12,975        14,024        25,923        11,746        39,513        —          135,159   

Commercial

     7,321        1,028        15,784        23,799        5,238        3,919        4,017        726        61,832   

Credit cards

     —          —          —          —          —          —          —          3,371        3,371   

All other

     1,596        2,106        812        329        17        1,003        203        1,326        7,392   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

   $ 51,493      $ 25,649      $ 54,233      $ 49,932      $ 40,701      $ 29,132      $ 56,847      $ 14,263      $ 322,250   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Fourth Quarter Results

Page 18

January 17, 2012

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

     December 31, 2011  
     Alabama
and Florida
Panhandle		      Arkansas      Mississippi      Missouri      Greater
Memphis
Area		      Tennessee      Texas and
Louisiana		      Other      Total  

OTHER REAL ESTATE OWNED:

                           

Commercial and industrial

    $ 436       $ 17       $ —         $ —         $ 940       $ —         $ —         $ —         $ 1,393   

Real estate

                           

Consumer mortgages

      3,816         448         3,400         —           5,199         4,160         733         2,889         20,645   

Home equity

      —           —           51         —           600         —           —           —           651   

Agricultural

      899         —           275         —           4,542         —           —           —           5,716   

Commercial and industrial-owner occupied

      1,022         303         1,972         76         2,371         426         174         —           6,344   

Construction, acquisition and development

      19,318         2,241         18,850         1,974         69,822         6,918         2,763         —           121,886   

Commercial

      1,121         1,605         3,604         —           7,672         753         232         —           14,987   

All other

      276         83         220         193         1,358         —           53         —           2,183   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total loans

    $ 26,888       $ 4,697       $ 28,372       $ 2,243       $ 92,504       $ 12,257       $ 3,955       $ 2,889       $ 173,805   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

     Quarter Ended  
     Dec-11     Sep-11     Jun-11     Mar-11     Dec-10  

OTHER REAL ESTATE OWNED:

           

Balance, beginning of period

    $ 162,686      $ 151,204      $ 136,412      $ 133,412      $ 82,647   

Additions to foreclosed properties

           

New foreclosed property

      36,507        29,063        38,199        21,464        62,683   

Reductions in foreclosed properties

           

Sales

      (16,688 )      (13,136 )      (21,135 )      (13,528 )      (8,528 ) 

Writedowns

      (8,700 )      (4,445 )      (2,272 )      (4,936 )      (3,390 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance, end of period

    $ 173,805      $ 162,686      $ 151,204      $ 136,412      $ 133,412   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

FORECLOSED PROPERTY EXPENSE

           

Loss (Gain) on sale of other real estate owned

    $ 711      $ 16      $ (140 )    $ 492      $ 807   

Writedown of other real estate owned

      8,700        4,445        2,272        4,936        3,390   

Other foreclosed property expense

      1,422        1,655        1,633        1,654        1,895   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total foreclosed property expense

    $ 10,833      $ 6,116      $ 3,765      $ 7,082      $ 6,092   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Fourth Quarter Results

Page 19

January 17, 2012

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended  
     Dec-11      Sep-11     Jun-11      Mar-11      Dec-10  

NONINTEREST REVENUE:

              

Mortgage lending

    $ 8,928       $ (1,443 )    $ 2,003       $ 7,581       $ 18,126   

Credit card, debit card and merchant fees

      7,783         12,981        11,263         10,346         9,951   

Service charges

      17,412         17,334        16,556         15,368         16,854   

Trust income

      3,348         2,854        2,850         3,134         3,072   

Securities gains (losses), net

      18         2,047        10,045         17         (470 ) 

Insurance commissions

      19,416         22,012        22,941         22,549         18,013   

Annuity fees

      382         552        1,094         1,296         458   

Brokerage commissions and fees

      1,215         1,627        1,437         1,638         1,436   

Bank-owned life insurance

      2,007         1,734        2,223         1,699         2,303   

Other miscellaneous income

      4,826         2,357        4,732         4,683         4,231   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total noninterest revenue

    $ 65,335       $ 62,055      $ 75,144       $ 68,311       $ 73,974   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

NONINTEREST EXPENSE:

              

Salaries and employee benefits

    $ 70,512       $ 71,851      $ 70,142       $ 70,375       $ 65,980   

Occupancy, net of rental income

      10,315         11,144        10,232         10,671         10,668   

Equipment

      5,108         5,346        5,595         5,658         5,459   

Deposit insurance assessments

      5,674         3,781        6,436         5,425         5,895   

Prepayment penalty on FHLB borrowings

      —           —          9,778         —           —     

Advertising

      1,778         1,140        1,291         889         1,760   

Foreclosed property expense

      10,833         6,116        3,765         7,082         6,092   

Telecommunications

      2,110         2,097        2,036         2,143         2,148   

Public relations

      1,244         1,415        1,554         1,514         1,361   

Data processing

      2,398         2,614        2,365         2,301         1,428   

Computer software

      1,892         1,863        1,899         1,848         1,937   

Amortization of intangibles

      813         823        833         854         950   

Legal

      3,947         1,586        1,095         2,586         1,872   

Postage and shipping

      1,163         1,182        1,171         1,297         1,269   

Other miscellaneous expense

      18,069         19,740        18,877         17,367         16,628   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total noninterest expense

    $ 135,856       $ 130,698      $ 137,069       $ 130,010       $ 123,447   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

INSURANCE COMMISSIONS:

              

Property and casualty commissions

    $ 14,033       $ 16,226      $ 16,527       $ 13,683       $ 13,304   

Life and health commissions

      4,024         4,359        4,301         4,477         3,627   

Risk management income

      597         703        596         713         617   

Other

      762         724        1,517         3,676         465   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total insurance commissions

    $ 19,416       $ 22,012      $ 22,941       $ 22,549       $ 18,013   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

 

- MORE -

BXS Announces Fourth Quarter Results

Page 20

January 17, 2012

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended  
     Dec-11     Sep-11     Jun-11     Mar-11     Dec-10  

MORTGAGE SERVICING RIGHTS:

           

Fair value, beginning of period

    $ 29,159      $ 39,455      $ 42,306      $ 38,642      $ 26,901   

Additions to mortgage servicing rights:

           

Originations of servicing assets

      3,754        3,127        2,380        2,431        4,725   

Changes in fair value:

           

Due to payoffs/paydowns

      (1,745 )      (1,745 )      (1,390 )      (1,300 )      (1,881 ) 

Due to change in valuation inputs or assumptions used in the valuation model

      (991 )      (11,676 )      (3,839 )      2,540        8,895   

Other changes in fair value

      (3 )      (2 )      (2 )      (7 )      2   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fair value, end of period

    $ 30,174      $ 29,159      $ 39,455      $ 42,306      $ 38,642   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

MORTGAGE LENDING REVENUE:

           

Production revenue:

           

Origination

    $ 8,308      $ 8,688      $ 4,066      $ 3,224      $ 7,942   

Servicing

      3,356        3,290        3,166        3,117        3,170   

Payoffs/Paydowns

      (1,745 )      (1,745 )      (1,390 )      (1,300 )      (1,881 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total production revenue

      9,919        10,233        5,842        5,041        9,231   

Market value adjustment

      (991 )      (11,676 )      (3,839 )      2,540        8,895   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total mortgage lending revenue

    $ 8,928      $ (1,443 )    $ 2,003      $ 7,581      $ 18,126   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

HELD-TO-MATURITY SECURITIES, at amortized cost

           

U.S. Government agencies

    $ —        $ —        $ —        $ 1,278,185      $ 1,246,649   

Obligations of states and political subdivisions

      —          —          —          389,018        366,370   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total held-to-maturity securities

    $ —        $ —        $ —        $ 1,667,203      $ 1,613,019   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

AVAILABLE-FOR-SALE SECURITIES, at fair value

           

U.S. Government agencies

    $ 1,501,243      $ 1,497,456      $ 1,599,231      $ 459,763      $ 433,158   

Government agency issued residential mortgage-back securities

      404,610        420,689        430,402        529,302        503,229   

Government agency issued commercial mortgage-back securities

      34,599        34,475        31,627        30,938        29,994   

Obligations of states and political subdivisions

      563,520        519,431        486,653        111,380        110,165   

Other

      9,546        9,504        12,911        14,080        19,516   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total available-for-sale securities

    $ 2,513,518      $ 2,481,555      $ 2,560,824      $ 1,145,463      $ 1,096,062   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Fourth Quarter Results

Page 21

January 17, 2012

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended December 31, 2011  
(Taxable equivalent basis)    Average
Balance		     Interest      Yield/
Rate		  

ASSETS

        

Loans, loans held for sale, and leases net of unearned income

    $ 9,022,010      $ 114,094         5.02 % 

Available-for-sale securities:

        

Taxable

      2,083,983        11,891         2.26 % 

Tax-exempt

      425,960        6,396         5.96 % 

Short-term investments

      386,405        253         0.26 % 
  

 

 

    

 

 

     

Total interest earning assets and revenue

      11,918,358        132,634         4.42 % 

Other assets

      1,336,426        

Less: allowance for credit losses

      (208,005 )      
  

 

 

       

Total

    $ 13,046,779        
  

 

 

       

LIABILITIES AND SHAREHOLDERS’ EQUITY

        

Deposits:

        

Demand - interest bearing

    $ 4,714,059      $ 4,737         0.40 % 

Savings

      975,892        746         0.30 % 

Other time

      3,078,376        13,104         1.69 % 

Short-term borrowings

      432,539        95         0.09 % 

Junior subordinated debt

      160,312        2,871         7.11 % 

Long-term debt

      33,500        350         4.15 % 
  

 

 

    

 

 

     

Total interest bearing liabilities and expense

      9,394,678        21,903         0.92 % 

Demand deposits - noninterest bearing

      2,248,904        

Other liabilities

      134,292        
  

 

 

       

Total liabilities

      11,777,874        

Shareholders’ equity

      1,268,905        
  

 

 

       

Total

    $ 13,046,779        
  

 

 

    

 

 

     

Net interest revenue

      $ 110,731      
    

 

 

     

Net interest margin

           3.69 % 

Net interest rate spread

           3.49 % 

Interest bearing liabilities to interest earning assets

           78.83 % 

Net interest tax equivalent adjustment

      $ 3,241      

 

- MORE -

BXS Announces Fourth Quarter Results

Page 22

January 17, 2012

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended September 30, 2011  
(Taxable equivalent basis)    Average
Balance		     Interest      Yield/
Rate		  

ASSETS

        

Loans, loans held for sale, and leases net of unearned income

    $ 9,200,439      $ 115,605         4.99 % 

Available-for-sale securities:

        

Taxable

      2,123,772        13,283         2.48 % 

Tax-exempt

      405,710        6,354         6.21 % 

Short-term investments

      309,146        203         0.26 % 
  

 

 

    

 

 

     

Total interest earning assets and revenue

      12,039,067        135,445         4.46 % 

Other assets

      1,340,797        

Less: allowance for credit losses

      (205,209 )      
  

 

 

       

Total

    $ 13,174,655        
  

 

 

       

LIABILITIES AND SHAREHOLDERS’ EQUITY

        

Deposits:

        

Demand - interest bearing

    $ 4,789,462      $ 5,323         0.44 % 

Savings

      957,871        828         0.34 % 

Other time

      3,246,332        14,837         1.81 % 

Short-term borrowings

      458,199        112         0.10 % 

Junior subordinated debt

      160,312        2,861         7.08 % 

Long-term debt

      34,984        361         4.09 % 
  

 

 

    

 

 

     

Total interest bearing liabilities and expense

      9,647,160        24,322         1.00 % 

Demand deposits - noninterest bearing

      2,147,707        

Other liabilities

      127,973        
  

 

 

       

Total liabilities

      11,922,840        

Shareholders’ equity

      1,251,815        
  

 

 

       

Total

    $ 13,174,655        
  

 

 

    

 

 

     

Net interest revenue

      $ 111,123      
    

 

 

     

Net interest margin

           3.66 % 

Net interest rate spread

           3.46 % 

Interest bearing liabilities to interest earning assets

           80.13 % 

Net interest tax equivalent adjustment

      $ 3,048      

 

- MORE -

BXS Announces Fourth Quarter Results

Page 23

January 17, 2012

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended June 30, 2011  
(Taxable equivalent basis)    Average
Balance		     Interest      Yield/
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 Fourth Quarter Results

Page 24

January 17, 2012

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended March 31, 2011  
(Taxable equivalent basis)    Average
Balance		     Interest      Yield/
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      

 

- MORE -

BXS Announces Fourth Quarter Results

Page 25

January 17, 2012

 

BancorpSouth, Inc.

Average Balances, Interest Income and Expense,

and Average Yields and Rates

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended December 31, 2010  
(Taxable equivalent basis)    Average
Balance		     Interest      Yield/
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      

 

- MORE -

BXS Announces Fourth Quarter Results

Page 26

January 17, 2012

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures

(Dollars in thousands)

(Unaudited)

Reconciliation of Tangible Assets and Tangible Shareholders’ Equity to Total Assets and Total Shareholders’ Equity (a):

 

     December 31,     September 30,
2011		  
     2011     2010    

Tangible assets

       

Total assets

    $ 12,995,851      $ 13,615,010      $ 13,198,518   

Less:  Goodwill

      271,297        270,097        271,297   

           Other identifiable intangible assets

      16,613        19,624        17,426   
  

 

 

    

 

 

    

 

 

  

Total tangible assets

    $ 12,707,941      $ 13,325,289      $ 12,909,795   

Tangible shareholders’ equity

       

Total shareholders’ equity

    $ 1,262,912      $ 1,222,244      $ 1,266,753   

Less:  Goodwill

      271,297        270,097        271,297   

           Other identifiable intangible assets

      16,613        19,624        17,426   
  

 

 

    

 

 

    

 

 

  

Total tangible shareholders’ equity

    $ 975,002      $ 932,523      $ 978,030   

Tangible shareholders’ equity to tangible assets

      7.67 %      7.00 %      7.58 % 

 

(a) 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 -