EX-99.1 2 d127853dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

News Release

 

LOGO

 

Contact:  
William L. Prater  

Will Fisackerly

Senior Executive Vice President and  

Senior Vice President and

Chief Financial Officer  

Director of Corporate Finance

662/680-2536  

662/680-2475

BancorpSouth Announces Second Quarter 2016 Financial Results

TUPELO, MS, July 20, 2016/PRNewswire — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended June 30, 2016.

Highlights for the second quarter of 2016 included:

 

  •   Net income of $34.7 million, or $0.37 per diluted share.

 

  •   Generated net loan growth of $131.3 million, or 5.1 percent on an annualized basis.

 

  •   Reached a settlement with the Consumer Financial Protection Bureau and the U.S. Department of Justice of their joint investigation of the Company’s fair lending practices.

 

  •   Earnings were adversely impacted by a negative mortgage servicing rights (“MSR”) valuation adjustment of $4.1 million.

 

  •   Net operating income - excluding MSR of $37.2 million, or $0.39 per diluted share.

 

  •   Continued stable credit quality; recorded provision for credit losses of $2.0 million for the quarter.

 

  •   Net interest margin remained stable at 3.56 percent.

 

  •   Continued progress toward leveraging cost structure as total noninterest expense was essentially flat compared to both the second quarter of 2015 and the first quarter of 2016, excluding disclosed non-operating items.

The Company reported net income of $34.7 million, or $0.37 per diluted share, for the second quarter of 2016 compared with net income of $39.7 million, or $0.41 per diluted share, for the second quarter of 2015 and net income of $22.5 million, or $0.24 per diluted share, for the first quarter of 2016.

 

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

BXS Announces Second Quarter Results

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July 20, 2016

 

The Company reported net operating income – excluding MSR of $37.2 million, or $0.39 per diluted share, for the second quarter of 2016 compared to $37.0 million, or $0.39 per diluted share, for the second quarter of 2015 and $36.9 million, or $0.39 per diluted share, for the first quarter of 2016.

“During the second quarter, we announced a settlement with the Consumer Financial Protection Bureau and the U.S. Department of Justice regarding their joint investigation of our fair lending practices,” remarked Dan Rollins, BancorpSouth Chairman and Chief Executive Officer. “This settlement did not materially impact our second quarter financial results as we previously recorded an associated liability of $13.8 million during the first quarter of this year. We believe putting this matter behind us was in the best interests of our customers, teammates, and shareholders. We are excited to move forward continuing to do what we do best, which is serve our customers and communities as well as deliver returns to our shareholders.

“Despite this distraction, our core financial results continue to improve. Our mortgage team generated production volume of $462.6 million during the quarter, which contributed to mortgage production and servicing revenue totaling $13.1 million. Total mortgage banking revenue was adversely impacted by a negative MSR valuation adjustment of $4.1 million. We reported loan growth of $131.3 million, or 5.1 percent annualized, while our net interest margin remained stable at 3.56 percent. Finally, we continue to challenge expenses and hold our core operating expenses in a tight range quarter after quarter. Our operating efficiency ratio – excluding MSR was 68.2 percent for the quarter, which is reflective of the hard work of our teammates and the focus placed on challenging every dollar we spend.”

Net Interest Revenue

Net interest revenue was $112.3 million for the second quarter of 2016, an increase of 4.7 percent from $107.3 million for the second quarter of 2015 and an increase of 1.0 percent from $111.2 million for the first quarter of 2016. The fully taxable equivalent net interest margin was 3.56 percent for the second quarter of 2016 compared to 3.54 percent for the second quarter of 2015 and 3.56 percent for the first quarter of 2016. Yields on loans and leases were 4.20 percent for the second quarter of 2016 compared with 4.23 percent for the second quarter of 2015 and 4.21 percent for the first quarter of 2016, while yields on total interest earning assets were 3.78 percent for the second quarter of 2016 compared with 3.78 percent for the second quarter of 2015 and 3.78 percent for the first quarter of 2016. The average cost of deposits was 0.21 percent for the second quarter of 2016 compared to 0.23 percent for the second quarter of 2015 and 0.21 percent for the first quarter of 2016.

Asset, Deposit and Loan Activity

Total assets were $14.1 billion at June 30, 2016 compared with $13.6 billion at June 30, 2015. Loans and leases, net of unearned income, were $10.6 billion at June 30, 2016 compared with $10.0 billion at June 30, 2015.

Total deposits were $11.4 billion at June 30, 2016 compared with $11.1 billion at June 30, 2015. A decrease in time deposits of $54.4 million, or 2.8 percent, at June 30, 2016 compared to June 30,

 

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BXS Announces Second Quarter Results

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2015 and a decrease in interest bearing demand deposits of $42.8 million, or 0.9 percent were more than offset by growth in other lower cost deposits. Noninterest bearing demand deposits increased $221.5 million, or 7.6 percent, over the same period, while savings deposits increased $105.1 million, or 7.5 percent.

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the quarter reflect a provision for credit losses of $2.0 million, compared to a negative provision of $5.0 million for the second quarter of 2015 and a provision of $1.0 million for the first quarter of 2016. Total non-performing assets (“NPAs”) were $94.9 million, or 0.90 percent of net loans and leases, at June 30, 2016 compared with $103.7 million, or 1.04 percent of net loans and leases, at June 30, 2015, and $106.9 million, or 1.02 percent of net loans and leases, at March 31, 2016.

Net charge-offs for the second quarter of 2016 were $1.6 million, compared with net recoveries of $6.7 million for the second quarter of 2015 and net charge-offs of $1.0 million for the first quarter of 2016. Gross charge-offs were $4.3 million for the second quarter of 2016, compared with $5.0 million for the second quarter of 2015 and $3.2 million for the first quarter of 2016. Gross recoveries of previously charged-off loans were $2.7 million for the second quarter of 2016, compared with $11.7 million for the second quarter of 2015 and $2.3 million for the first quarter of 2016. Annualized net charge-offs were 0.06 percent of average loans and leases for the second quarter of 2016, compared with annualized net recoveries of 0.27 percent for the second quarter of 2015 and annualized net charge-offs of 0.04 percent for the first quarter of 2016.

Non-performing loans (“NPLs”) were $80.2 million, or 0.76 percent of net loans and leases, at June 30, 2016, compared with $79.4 million, or 0.79 percent of net loans and leases, at June 30, 2015, and $94.2 million, or 0.90 percent of net loans and leases, at March 31, 2016. The allowance for credit losses was $126.9 million, or 1.20 percent of net loans and leases, at June 30, 2016, compared with $138.3 million, or 1.38 percent of net loans and leases, at June 30, 2015 and $126.5 million, or 1.21 percent of net loans and leases, at March 31, 2016.

NPLs at June 30, 2016 consisted primarily of $68.6 million of nonaccrual loans, compared with $81.9 million of nonaccrual loans at March 31, 2016. NPLs at June 30, 2016 also included $1.9 million of loans 90 days or more past due and still accruing, compared with $4.6 million of such loans at March 31, 2016, and included restructured loans still accruing of $9.7 million at June 30, 2016, compared with $7.8 million of such loans at March 31, 2016. Early stage past due loans, representing loans 30-89 days past due, totaled $31.9 million at June 30, 2016 compared to $23.6 million at March 31, 2016. Other real estate owned increased $2.0 million to $14.7 million during the second quarter of 2016 from $12.7 million at March 31, 2016.

Noninterest Revenue

Noninterest revenue was $69.7 million for the second quarter of 2016, compared with $74.3 million for the second quarter of 2015 and $65.5 million for the first quarter of 2016. These results included a negative MSR valuation adjustment of $4.1 million for the second quarter of

 

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BXS Announces Second Quarter Results

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2016 compared with a positive MSR valuation adjustment of $4.3 million for the second quarter of 2015 and a negative MSR valuation adjustment of $8.0 million for the first quarter of 2016. Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.

Excluding the MSR valuation adjustments, mortgage banking revenue was $13.1 million for the second quarter of 2016, compared with $9.8 million for the second quarter of 2015 and $10.6 million for the first quarter of 2016. Mortgage origination volume for the second quarter of 2016 was $462.6 million, compared with $417.2 million for the second quarter of 2015 and $315.4 million for the first quarter of 2016.

Credit and debit card fee revenue was $9.5 million for the second quarter of 2016, compared with $9.3 million for the second quarter of 2015 and $9.0 million for the first quarter of 2016. Deposit service charge revenue was $11.0 million for the second quarter of 2016, compared with $11.5 million for the second quarter of 2015 and $11.0 million for the first quarter of 2016. Insurance commission revenue was $28.8 million for the second quarter of 2016, compared with $29.3 million for the second quarter of 2015 and $33.2 million for the first quarter of 2016. Wealth management revenue was $5.3 million for the second quarter of 2016, compared with $5.5 million for the second quarter of 2015 and $5.1 million for the first quarter of 2016.

Noninterest Expense

Noninterest expense for the second quarter of 2016 was $128.7 million, compared with $128.2 million for the second quarter of 2015 and $142.3 million for the first quarter of 2016. Salaries and employee benefits expense was $81.8 million for the second quarter of 2016 compared to $79.8 million for the second quarter of 2015 and $82.5 million for the first quarter of 2016. Occupancy expense was $10.1 million for the second quarter of 2016, compared with $10.4 million for the second quarter of 2015 and $10.3 million for the first quarter of 2016. Other noninterest expense was $30.9 million for the second quarter of 2016, compared to $31.6 million for the second quarter of 2015 and $33.2 million for the first quarter of 2016. Total noninterest expense for the first quarter of 2016 included a total charge of $13.8 million to reflect the probable and estimable liability associated with the joint investigation by the Consumer Financial Protection Bureau and the U.S. Department of Justice, $10.3 million of which is reflected as regulatory settlement expense and $3.5 million of which is included in other noninterest expense. The settlement of this matter did not have a material financial impact on second quarter 2016 financial results.

Capital Management

The Company’s equity capitalization is comprised entirely of common stock. BancorpSouth’s ratio of shareholders’ equity to assets was 12.12 percent at June 30, 2016, compared with 12.32 percent at June 30, 2015 and 12.06 percent at March 31, 2016. The ratio of tangible shareholders’ equity to tangible assets was 10.11 percent at June 30, 2016, compared with 10.26 percent at June 30, 2015 and 10.05 percent at March 31, 2016.

 

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BXS Announces Second Quarter Results

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Estimated regulatory capital ratios at June 30, 2016 were calculated in accordance with the Basel III capital framework. BancorpSouth is a “well capitalized” financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 12.37 percent at June 30, 2016 and total risk based capital of 13.45 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, for “well capitalized” classification.

Transactions

On January 8, 2014, the Company announced the signing of a definitive merger agreement with Ouachita Bancshares Corp., parent company of Ouachita Independent Bank (collectively referred to as “OIB”), headquartered in Monroe, Louisiana, pursuant to which Ouachita Bancshares Corp. will be merged with and into the Company. OIB operates 11 full-service banking offices along the I-20 corridor and has a loan production office in Madison, Mississippi. As of June 30, 2016, OIB, on a consolidated basis, reported total assets of $667.1 million, total loans of $481.2 million and total deposits of $570.7 million. Under the terms of the definitive agreement, the Company will issue approximately 3,675,000 shares of the Company’s common stock plus $22.875 million in cash for all outstanding shares of Ouachita Bancshares Corp.’s capital stock, subject to certain conditions and potential adjustments. The merger has been unanimously approved by the Board of Directors of each company and was approved by OIB shareholders on April 8, 2014. On February 25, 2015, the Company re-filed the merger application for the merger with Ouachita Bancshares Corp. with the appropriate regulatory agencies. On June 30, 2015, the Company announced the merger agreement was extended through December 31, 2015 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. Although the merger agreement has not been extended beyond December 31, 2015, the amended agreement remains in effect until terminated by the Board of Directors of the Company or OIB. The terms of the amended agreement provide for a minimum total deal value of $111.1 million but also allow Ouachita Bancshares Corp. to terminate the agreement if the average closing price of the Company’s common stock declines below a certain threshold prior to closing. The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

On January 21, 2014, the Company announced the signing of a definitive merger agreement with Central Community Corporation, headquartered in Temple, Texas, pursuant to which Central Community Corporation will be merged with and into the Company. Central Community Corporation is the parent company of First State Bank Central Texas (“First State Bank”), which is headquartered in Austin, Texas. First State Bank operates 31 full-service banking offices in central Texas. As of June 30, 2016, Central Community Corporation, on a consolidated basis, reported total assets of $1.4 billion, total loans of $601.9 million and total deposits of $1.1 billion. Under the terms of the definitive agreement, the Company will issue approximately 7,250,000 shares of the Company’s common stock plus $28.5 million in cash for all outstanding shares of Central Community Corporation’s capital stock, subject to certain conditions and potential adjustments. The merger has been unanimously approved by the Board of Directors of each company and was approved by Central Community Corporation shareholders on April 24, 2014. On February 25, 2015, the Company re-filed the merger application for the merger with Central Community Corporation with the appropriate regulatory agencies. On June 30, 2015, the Company announced the merger agreement was extended through December 31, 2015 to allow

 

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BXS Announces Second Quarter Results

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for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. Although the merger agreement has not been extended beyond December 31, 2015, the amended agreement remains in effect until terminated by the Board of Directors of the Company or Central Community Corporation. The terms of the amended agreement provide for a minimum total deal value of $202.5 million but also allow Central Community Corporation to terminate the agreement if the average closing price of the Company’s common stock declines below a certain threshold prior to closing. The transaction is expected to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the merger will close timely or at all.

For the most recent information regarding the status of the merger with Ouachita Bancshares Corp. and the status of the merger with Central Community Corporation in our periodic reports, please refer to the section titled “Recent Acquisitions and Transaction Activity” in Part I, Item 1, and Part I, Item 1A, of the Annual Report on Form 10-K that was previously filed with the SEC on February 23, 2016.

Summary

Rollins concluded, “Our financial results reflect the same simple story we have been communicating quarter after quarter. We continue to grow revenue while managing total noninterest expense in a very tight range. Revenue growth has been driven by increases in net interest income as we grow our balance sheet and maintain a stable net interest margin as well growth in certain of our non-interest products, including mortgage banking revenue. Our insurance teammates continue to focus on growing our customer base to battle industry pricing headwinds. I’m confident we are positioned to continue to improve our operating performance and enhance shareholder value as we move forward.”

Conference Call

BancorpSouth will conduct a conference call to discuss its second quarter 2016 results on July 21, 2016, 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.

About BancorpSouth, Inc.

BancorpSouth, Inc. (NYSE: BXS) is a financial holding company headquartered in Tupelo, Mississippi, with $14.1 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 238 full service branch locations as well as additional mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois. BancorpSouth is committed to a culture of respect, diversity, and inclusion in both its workplace and communities. To learn more, visit our Community Commitment page at www.bancorpsouth.com. Like us on Facebook; follow us on Twitter: @MyBXS; or connect with us through LinkedIn.

 

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BXS Announces Second Quarter Results

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Forward-Looking Statements

Certain statements contained in this news release may not be based upon 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,” “could,” “estimate,” “expect,” “foresee,” “hope,” “intend,” “may,” “might,” “plan,” “will,” or “would” or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the terms, timing and closings of the proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation, the Company’s ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its Bank Secrecy Act (“BSA”) and anti-money laundering (“AML”) compliance program and its fair lending compliance program, the Company’s compliance with the consent order it entered into with the Consumer Financial Protection Bureau (the “CFPB”) and the United States Department of Justice (“DOJ”) related to the Company’s fair lending practices (the “Consent Order”), the acceptance by customers of Ouachita Bancshares Corp. and Central Community Corporation of the Company’s products and services if the proposed mergers close, the outcome of any instituted, pending or threatened material litigation, amortization expense for intangible assets, goodwill impairments, loan impairment, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue, fair value determinations, the amount of the Company’s non-performing loans and leases, additions to OREO, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, continued weakness in the economic environment, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company’s reserve for losses from representation and warranty obligations, the Company’s foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, calculation of economic value of equity, impaired loan charge-offs, troubled debt restructurings, diversification of the Company’s revenue stream, liquidity needs and strategies, sources of funding, net interest margin, declaration and payment of dividends, cost saving initiatives, improvement in the Company’s efficiencies, operating expense trends, future acquisitions and consideration to be used therefor, and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters.

The Company cautions readers 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 as a result of a variety of factors. These factors may include, but are not limited to, the Company’s ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program and its fair lending compliance program, the Company’s ability to successfully implement and comply with the Consent Order, the ability of the Company, Ouachita Bancshares Corp. and Central Community Corporation to obtain regulatory approval of and close the proposed mergers, the willingness of Ouachita Bancshares Corp. and Central Community Corporation to proceed with the proposed mergers, which they are no longer contractually obligated to complete, the potential impact upon the Company of the delay in the closings of these proposed mergers, the impact of any ongoing, pending or threatened litigation, administrative and investigatory matters involving the Company, conditions in the financial markets and economic conditions generally, the adequacy of the Company’s provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company’s OREO, limitations on the Company’s ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Act, and supervision of the Company’s operations, the short-term and long-term impact of changes to banking capital standards on the Company’s regulatory capital and liquidity, the impact of regulations on service charges on the Company’s core deposit accounts, the susceptibility of the Company’s business to local economic and environmental conditions, the soundness of other financial institutions, 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, reputational risk, the impact of the loss of any key Company personnel, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the Company’s ability to adapt its products and services to evolving industry standards and consumer preferences, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company’s growth strategy, interruptions or breaches in the Company’s information system security, the failure of certain third-party vendors to perform, unfavorable ratings by rating agencies, dilution caused by the Company’s issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, other factors generally understood to affect the assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies and other factors detailed from time to time in the Company’s press and news releases, reports and other filings with the SEC. Forward-looking statements speak only as of the date that they were made, and, except as required by law, the Company does not undertake any obligation to update or revise forward-looking statements to reflect events or circumstances that occur after the date of this news release.

 

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BXS Announces Second Quarter Results

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BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

 

    Quarter Ended     Quarter Ended     Quarter Ended     Quarter Ended     Quarter Ended  
    6/30/2016     3/31/2016     12/31/2015     9/30/2015     6/30/2015  

Earnings Summary:

          

Interest revenue

   $ 119,423      $ 117,972      $ 118,050      $ 118,201      $ 114,630   

Interest expense

     7,107        6,813        6,820        7,131        7,321   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest revenue

     112,316        111,159        111,230        111,070        107,309   

Provision for credit losses

     2,000        1,000        —          (3,000 )      (5,000 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest revenue, after provision for credit losses

     110,316        110,159        111,230        114,070        112,309   

Noninterest revenue

     69,683        65,515        67,386        62,953        74,314   

Noninterest expense

     128,718        142,300        148,351        126,450        128,177   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

     51,281        33,374        30,265        50,573        58,446   

Income tax expense

     16,589        10,825        9,096        16,230        18,733   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

   $ 34,692      $ 22,549      $ 21,169      $ 34,343      $ 39,713   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance Sheet - Period End Balances

          

Total assets

   $ 14,137,160      $ 13,926,398      $ 13,798,662      $ 13,787,424      $ 13,634,931   

Total earning assets

     12,977,030        12,760,031        12,656,791        12,663,944        12,492,532   

Total securities

     2,103,883        2,016,373        2,082,329        2,161,125        2,251,153   

Loans and leases, net of unearned income

     10,575,978        10,444,697        10,372,778        10,219,576        10,007,571   

Allowance for credit losses

     126,935        126,506        126,458        133,009        138,312   

Total deposits

     11,364,367        11,486,697        11,331,161        11,141,946        11,134,961   

Long-term debt

     365,588        67,681        69,775        71,868        73,962   

Total shareholders’ equity

     1,713,043        1,679,793        1,655,444        1,644,820        1,680,196   

Balance Sheet - Average Balances

          

Total assets

   $ 14,027,786      $ 13,851,661      $ 13,724,595      $ 13,632,581      $ 13,516,546   

Total earning assets

     12,963,056        12,830,000        12,628,685        12,548,967        12,443,960   

Total securities

     2,069,058        2,037,739        2,110,195        2,207,935        2,211,931   

Loans and leases, net of unearned income

     10,513,732        10,372,925        10,321,299        10,110,995        9,868,318   

Total deposits

     11,437,422        11,431,480        11,182,750        11,140,542        11,148,246   

Long-term debt

     219,434        67,750        69,775        71,868        73,962   

Total shareholders’ equity

     1,690,906        1,668,465        1,650,924        1,680,123        1,659,991   

Nonperforming Assets:

          

Non-accrual loans and leases

   $ 68,638      $ 81,926      $ 83,028      $ 70,237      $ 67,766   

Loans and leases 90+ days past due, still accruing

     1,875        4,567        2,013        1,436        1,568   

Restructured loans and leases, still accruing

     9,687        7,753        9,876        18,578        10,109   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-performing loans (NPLs)

     80,200        94,246        94,917        90,251        79,443   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Other real estate owned

     14,658        12,685        14,759        23,696        24,299   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Non-performing assets (NPAs)

   $ 94,858      $ 106,931      $ 109,676      $ 113,947      $ 103,742   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Financial Ratios and Other Data:

          

Return on average assets

     0.99 %      0.65 %      0.61 %      1.00 %      1.18 % 

Operating return on average assets-excluding MSR*

     1.07 %      1.07 %      0.86 %      1.09 %      1.10 % 

Return on average shareholders’ equity

     8.25 %      5.44 %      5.09 %      8.11 %      9.60 % 

Operating return on average shareholders’ equity-excluding MSR*

     8.84 %      8.89 %      7.12 %      8.88 %      8.94 % 

Return on tangible equity*

     9.99 %      6.63 %      6.25 %      10.23 %      11.66 % 

Operating return on tangible equity-excluding MSR*

     10.70 %      10.84 %      8.75 %      11.21 %      10.87 % 

Noninterest income to average assets

     2.00 %      1.90 %      1.95 %      1.83 %      2.21 % 

Noninterest expense to average assets

     3.69 %      4.13 %      4.29 %      3.68 %      3.80 % 

Net interest margin-fully taxable equivalent

     3.56 %      3.56 %      3.58 %      3.59 %      3.54 % 

Net interest rate spread

     3.47 %      3.47 %      3.48 %      3.49 %      3.44 % 

Efficiency ratio (tax equivalent)*

     69.77 %      79.39 %      81.86 %      71.56 %      69.52 % 

Operating efficiency ratio-excluding MSR (tax equivalent)*

     68.21 %      68.66 %      73.89 %      69.45 %      71.16 % 

Loan/deposit ratio

     93.06 %      90.93 %      91.54 %      91.72 %      89.88 % 

Price to earnings multiple (avg)

     19.07        17.33        18.17        16.98        18.80   

Market value to book value

     125.23 %      119.81 %      136.46 %      135.80 %      148.34 % 

Market value to book value (avg)

     124.62 %      116.78 %      142.53 %      140.68 %      142.10 % 

Market value to tangible book value

     153.53 %      147.04 %      168.15 %      167.71 %      182.42 % 

Market value to tangible book value (avg)

     152.78 %      143.33 %      175.64 %      173.74 %      174.75 % 

Headcount FTE

     4,028        3,966        3,970        3,903        3,935   

 

* Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 19 and 20.

 

- MORE -

BXS Announces Second Quarter Results

Page 9

July 20, 2016

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

 

    Quarter Ended     Quarter Ended     Quarter Ended     Quarter Ended     Quarter Ended  
    6/30/2016     3/31/2016     12/31/2015     9/30/2015     6/30/2015  

Credit Quality Ratios:

          

Net (recoveries) charge-offs to average loans and leases (annualized)

     0.06 %      0.04 %      0.25 %      0.09 %      (0.27 %) 

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

     0.08 %      0.04 %      0.00 %      (0.12 %)      (0.20 %) 

Allowance for credit losses to net loans and leases

     1.20 %      1.21 %      1.22 %      1.30 %      1.38 % 

Allowance for credit losses to non-performing loans and leases

     158.27 %      134.23 %      133.23 %      147.38 %      174.10 % 

Allowance for credit losses to non-performing assets

     133.82 %      118.31 %      115.30 %      116.73 %      133.32 % 

Non-performing loans and leases to net loans and leases

     0.76 %      0.90 %      0.92 %      0.88 %      0.79 % 

Non-performing assets to net loans and leases

     0.90 %      1.02 %      1.06 %      1.11 %      1.04 % 

Equity Ratios:

          

Total shareholders’ equity to total assets

     12.12 %      12.06 %      12.00 %      11.93 %      12.32 % 

Tangible shareholders’ equity to tangible assets*

     10.11 %      10.05 %      9.96 %      9.88 %      10.26 % 

Capital Adequacy:

          

Common Equity Tier 1 capital

     12.17 %      12.14 %      12.07 %      12.08 %      12.60 % 

Tier 1 capital

     12.37 %      12.34 %      12.27 %      12.29 %      12.81 % 

Total capital

     13.45 %      13.43 %      13.37 %      13.45 %      14.04 % 

Tier 1 leverage capital

     10.66 %      10.61 %      10.61 %      10.56 %      10.96 % 

Estimated for current quarter

          

Common Share Data:

          

Basic earnings per share

   $ 0.37      $ 0.24      $ 0.22      $ 0.36      $ 0.41   

Diluted earnings per share

     0.37        0.24        0.22        0.36        0.41   

Operating earnings per share*

     0.37        0.34        0.33        0.36        0.41   

Operating earnings per share- excluding MSR*

     0.39        0.39        0.31        0.39        0.39   

Cash dividends per share

     0.10        0.10        0.10        0.10        0.08   

Book value per share

     18.12        17.79        17.58        17.50        17.37   

Tangible book value per share*

     14.78        14.49        14.27        14.17        14.12   

Market value per share (last)

     22.69        21.31        23.99        23.77        25.76   

Market value per share (high)

     24.18        23.64        27.23        26.54        26.68   

Market value per share (low)

     20.19        18.69        22.44        22.09        22.83   

Market value per share (avg)

     22.58        20.77        25.06        24.62        24.68   

Dividend payout ratio

     22.58 %      41.85 %      44.46 %      28.01 %      18.25 % 

Total shares outstanding

     94,546,091        94,438,626        94,162,728        93,969,994        96,755,530   

Average shares outstanding - basic

     94,461,025        94,369,211        94,111,408        96,202,871        96,625,794   

Average shares outstanding - diluted

     94,694,795        94,593,540        94,384,443        96,467,728        96,957,441   

Yield/Rate:

          

(Taxable equivalent basis)

          

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

     4.20 %      4.21 %      4.15 %      4.22 %      4.23 % 

Available-for-sale securities:

          

Taxable

     1.40 %      1.40 %      1.48 %      1.40 %      1.40 % 

Tax-exempt

     5.36 %      5.36 %      5.32 %      5.32 %      5.44 % 

Short-term investments

     0.39 %      0.33 %      0.22 %      0.20 %      0.24 % 

Total interest earning assets and revenue

     3.78 %      3.78 %      3.79 %      3.82 %      3.78 % 

Deposits

     0.21 %      0.21 %      0.21 %      0.22 %      0.23 % 

Demand - interest bearing

     0.18 %      0.17 %      0.18 %      0.18 %      0.19 % 

Savings

     0.12 %      0.12 %      0.12 %      0.12 %      0.12 % 

Other time

     0.75 %      0.73 %      0.71 %      0.76 %      0.79 % 

Short-term borrowings

     0.15 %      0.14 %      0.12 %      0.12 %      0.11 % 

Total interest bearing deposits & short-term borrowings

     0.29 %      0.28 %      0.28 %      0.30 %      0.31 % 

Junior subordinated debt

     3.23 %      3.18 %      2.93 %      2.87 %      2.86 % 

Long-term debt

     1.21 %      3.08 %      2.95 %      2.91 %      2.90 % 

Total interest bearing liabilities and expense

     0.32 %      0.31 %      0.31 %      0.32 %      0.34 % 

Interest bearing liabilities to interest earning assets

     69.47 %      69.75 %      69.23 %      69.68 %      70.36 % 

Net interest tax equivalent adjustment

   $ 2,493      $ 2,558      $ 2,601      $ 2,558      $ 2,628   

 

* Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 19 and 20.

 

- MORE -

BXS Announces Second Quarter Results

Page 10

July 20, 2016

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

 

    Jun-16     Mar-16     Dec-15     Sep-15     Jun-15  
    (Dollars in thousands)  

Assets

          

Cash and due from banks

   $ 186,381      $ 197,538      $ 154,192      $ 159,923      $ 183,541   

Interest bearing deposits with other banks

     86,472        148,915        43,777        113,068        34,438   

Available-for-sale securities, at fair value

     2,103,883        2,016,373        2,082,329        2,161,125        2,251,153   

Loans and leases

     10,604,547        10,475,528        10,404,326        10,254,013        10,041,455   

Less: Unearned income

     28,569        30,831        31,548        34,437        33,884   

Allowance for credit losses

     126,935        126,506        126,458        133,009        138,312   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net loans and leases

     10,449,043        10,318,191        10,246,320        10,086,567        9,869,259   

Loans held for sale

     210,698        150,046        157,907        170,175        199,370   

Premises and equipment, net

     305,694        306,765        308,125        304,317        303,837   

Accrued interest receivable

     39,645        41,401        40,901        41,599        41,065   

Goodwill

     294,901        291,498        291,498        291,498        291,498   

Other identifiable intangibles

     20,831        19,664        20,545        21,466        22,415   

Bank owned life insurance

     255,240        253,427        251,534        249,825        247,983   

Other real estate owned

     14,658        12,685        14,759        23,696        24,299   

Other assets

     169,714        169,895        186,775        164,165        166,073   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Assets

   $ 14,137,160      $ 13,926,398      $ 13,798,662      $ 13,787,424      $ 13,634,931   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Liabilities

          

Deposits:

          

Demand: Noninterest bearing

   $ 3,133,460      $ 3,103,321      $ 3,031,528      $ 3,053,439      $ 2,911,972   

Interest bearing

     4,838,704        5,033,565        5,003,806        4,794,656        4,881,469   

Savings

     1,512,694        1,506,942        1,442,336        1,409,856        1,407,616   

Other time

     1,879,509        1,842,869        1,853,491        1,883,995        1,933,904   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total deposits

     11,364,367        11,486,697        11,331,161        11,141,946        11,134,961   

Federal funds purchased and securities sold under agreement to repurchase

     415,949        431,089        405,937        425,203        375,980   

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

     —          —          62,000        224,500        92,500   

Accrued interest payable

     3,727        3,305        3,071        3,353        3,494   

Junior subordinated debt securities

     23,198        23,198        23,198        23,198        23,198   

Long-term debt

     365,588        67,681        69,775        71,868        73,962   

Other liabilities

     251,288        234,635        248,076        252,536        250,640   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Liabilities

     12,424,117        12,246,605        12,143,218        12,142,604        11,954,735   

Shareholders’ Equity

          

Common stock

     236,365        236,097        235,407        234,925        241,889   

Capital surplus

     286,994        283,800        282,934        278,998        337,272   

Accumulated other comprehensive loss

     (27,587 )      (32,144 )      (41,825 )      (36,355 )      (41,288 ) 

Retained earnings

     1,217,271        1,192,040        1,178,928        1,167,252        1,142,323   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Shareholders’ Equity

     1,713,043        1,679,793        1,655,444        1,644,820        1,680,196   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Liabilities & Shareholders’ Equity

   $ 14,137,160      $ 13,926,398      $ 13,798,662      $ 13,787,424      $ 13,634,931   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Second Quarter Results

Page 11

July 20, 2016

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

 

     Jun-16     Mar-16     Dec-15     Sep-15     Jun-15  
     (Dollars in thousands)  

Assets

           

Cash and due from banks

    $ 117,193      $ 71,528      $ 159,696      $ 159,569      $ 152,792   

Interest bearing deposits with other banks

      237,635        316,108        69,552        72,438        212,634   

Available-for-sale securities, at fair value

      2,069,058        2,037,739        2,110,195        2,207,935        2,211,931   

Loans and leases

      10,543,795        10,405,063        10,353,913        10,144,874        9,903,034   

Less: Unearned income

      30,063        32,138        32,614        33,879        34,716   

Allowance for credit losses

      126,103        126,567        132,375        137,547        140,483   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net loans and leases

      10,387,629        10,246,358        10,188,924        9,973,448        9,727,835   

Loans held for sale

      142,632        103,227        127,638        157,598        151,077   

Premises and equipment, net

      307,600        308,065        306,881        304,948        305,335   

Accrued interest receivable

      36,887        38,306        38,142        38,847        38,268   

Goodwill

      292,620        291,498        291,498        291,498        291,498   

Other identifiable intangibles

      19,796        19,987        20,880        21,812        22,780   

Bank owned life insurance

      254,191        252,422        250,577        248,798        246,872   

Other real estate owned

      15,666        14,523        21,049        24,008        27,190   

Other assets

      146,879        151,900        139,563        131,682        128,334   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Assets

    $ 14,027,786      $ 13,851,661      $ 13,724,595      $ 13,632,581      $ 13,516,546   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Liabilities

           

Deposits:

           

Demand: Noninterest bearing

    $ 3,122,153      $ 3,014,896      $ 3,106,947      $ 2,992,903      $ 2,895,451   

Interest bearing

      4,957,827        5,102,648        4,782,234        4,822,567        4,899,467   

Savings

      1,510,250        1,468,262        1,421,361        1,413,187        1,404,336   

Other time

      1,847,192        1,845,674        1,872,208        1,911,885        1,948,992   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total deposits

      11,437,422        11,431,480        11,182,750        11,140,542        11,148,246   

Federal funds purchased and securities sold under agreement to repurchase

      443,340        431,260        466,865        439,503        399,447   

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

      4,275        10,484        107,408        62,136        6,555   

Accrued interest payable

      3,509        3,248        3,340        3,600        3,457   

Junior subordinated debt securities

      23,198        23,198        23,198        23,198        23,198   

Long-term debt

      219,434        67,750        69,775        71,868        73,962   

Other liabilities

      205,702        215,776        220,335        211,611        201,690   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Liabilities

      12,336,880        12,183,196        12,073,671        11,952,458        11,856,555   

Shareholders’ Equity

           

Common stock

      236,176        235,946        235,227        240,473        241,540   

Capital surplus

      284,818        282,796        282,076        325,118        332,993   

Accumulated other comprehensive loss

      (32,820 )      (36,184 )      (38,618 )      (40,476 )      (38,534 ) 

Retained earnings

      1,202,732        1,185,907        1,172,239        1,155,008        1,123,992   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Shareholders’ Equity

      1,690,906        1,668,465        1,650,924        1,680,123        1,659,991   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Liabilities & Shareholders’ Equity

    $ 14,027,786      $ 13,851,661      $ 13,724,595      $ 13,632,581      $ 13,516,546   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Second Quarter Results

Page 12

July 20, 2016

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

 

    Quarter Ended     YTD  
    Jun-16     Mar-16     Dec-15     Sep-15     Jun-15     Jun-16     Jun-15  

INTEREST REVENUE:

              

Loans and leases

   $ 109,078      $ 107,805      $ 107,164      $ 107,086      $ 103,428      $ 216,883      $ 205,563   

Deposits with other banks

     229        263        40        36        126        492        362   

Available-for-sale securities:

              

Taxable

     6,009        5,888        6,550        6,490        6,424        11,897        13,268   

Tax-exempt

     2,924        3,032        3,137        3,226        3,335        5,956        6,712   

Loans held for sale

     1,183        984        1,159        1,363        1,317        2,167        2,222   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest revenue

     119,423        117,972        118,050        118,201        114,630        237,395        228,127   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INTEREST EXPENSE:

              

Interest bearing demand

     2,208        2,163        2,166        2,209        2,262        4,371        4,445   

Savings

     451        443        434        431        426        894        838   

Other time

     3,436        3,354        3,356        3,646        3,827        6,790        7,835   

Federal funds purchased and securities sold under agreement to repurchase

     159        140        112        104        85        299        167   

Long-term debt

     665        530        581        571        556        1,195        1,133   

Junior subordinated debt

     187        183        171        168        165        370        328   

Other

     1        —          —          2        —          1        (1 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total interest expense

     7,107        6,813        6,820        7,131        7,321        13,920        14,745   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest revenue

     112,316        111,159        111,230        111,070        107,309        223,475        213,382   

Provision for credit losses

     2,000        1,000        —          (3,000 )      (5,000 )      3,000        (10,000 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest revenue, after provision for credit losses

     110,316        110,159        111,230        114,070        112,309        220,475        223,382   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NONINTEREST REVENUE:

              

Mortgage banking

     9,043        2,618        10,522        2,339        14,102        11,661        22,669   

Credit card, debit card and merchant fees

     9,495        8,961        9,414        9,282        9,298        18,456        17,837   

Deposit service charges

     11,018        11,014        11,836        12,150        11,527        22,032        22,779   

Security gains, net

     86        2        48        33        41        88        55   

Insurance commissions

     28,803        33,249        25,348        28,584        29,319        62,052        62,812   

Wealth Management

     5,347        5,109        5,375        5,567        5,508        10,456        11,718   

Other

     5,891        4,562        4,843        4,998        4,519        10,453        9,759   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total noninterest revenue

     69,683        65,515        67,386        62,953        74,314        135,198        147,629   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NONINTEREST EXPENSE:

              

Salaries and employee benefits

     81,832        82,467        80,177        81,354        79,759        164,299        160,938   

Occupancy, net of rental income

     10,109        10,273        10,434        10,819        10,419        20,382        20,613   

Equipment

     3,295        3,765        3,569        3,742        4,024        7,060        7,998   

Deposit insurance assessments

     2,582        2,288        2,630        2,191        2,377        4,870        4,688   

Regulatory settlement

     —          10,277        —          —          —          10,277        —     

Other

     30,900        33,230        51,541        28,344        31,598        64,130        70,873   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total noninterest expense

     128,718        142,300        148,351        126,450        128,177        271,018        265,110   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

     51,281        33,374        30,265        50,573        58,446        84,655        105,901   

Income tax expense

     16,589        10,825        9,096        16,230        18,733        27,414        33,922   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income

   $ 34,692      $ 22,549      $ 21,169      $ 34,343      $ 39,713      $ 57,241      $ 71,979   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income per share: Basic

   $ 0.37      $ 0.24      $ 0.22      $ 0.36      $ 0.41      $ 0.61      $ 0.75   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

   $ 0.37      $ 0.24      $ 0.22      $ 0.36      $ 0.41      $ 0.60      $ 0.74   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Second Quarter Results

Page 13

July 20, 2016

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

    Quarter Ended  
    Jun-16     Mar-16     Dec-15     Sep-15     Jun-15  

LOAN AND LEASE PORTFOLIO:

          

Commercial and industrial

   $ 1,698,089      $ 1,716,477      $ 1,747,774      $ 1,710,497      $ 1,730,142   

Real estate

          

Consumer mortgages

     2,549,989        2,480,828        2,472,202        2,447,132        2,374,122   

Home equity

     614,686        605,228        589,752        573,566        558,460   

Agricultural

     251,566        239,422        259,360        252,381        239,884   

Commercial and industrial-owner occupied

     1,644,618        1,654,577        1,617,429        1,605,811        1,596,244   

Construction, acquisition and development

     1,021,218        966,362        945,045        900,875        860,407   

Commercial real estate

     2,254,653        2,233,742        2,188,048        2,141,398        2,081,394   

Credit cards

     108,101        106,714        112,165        109,576        110,552   

All other

     433,058        441,347        441,003        478,340        456,366   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

   $ 10,575,978      $ 10,444,697      $ 10,372,778      $ 10,219,576      $ 10,007,571   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

ALLOWANCE FOR CREDIT LOSSES:

          

Balance, beginning of period

   $ 126,506      $ 126,458      $ 133,009      $ 138,312      $ 136,660   

Loans and leases charged-off:

          

Commercial and industrial

     (748 )      (140 )      (6,193 )      (2,010 )      (1,436 ) 

Real estate

          

Consumer mortgages

     (477 )      (710 )      (1,146 )      (1,382 )      (575 ) 

Home equity

     (224 )      (550 )      (147 )      (314 )      (245 ) 

Agricultural

     (10 )      (11 )      (16 )      (9 )      —     

Commercial and industrial-owner occupied

     (660 )      (154 )      (357 )      (645 )      (404 ) 

Construction, acquisition and development

     (280 )      (226 )      (221 )      (203 )      (272 ) 

Commercial real estate

     (870 )      (245 )      (122 )      (1,477 )      (1,117 ) 

Credit cards

     (614 )      (720 )      (723 )      (706 )      (527 ) 

All other

     (417 )      (487 )      (623 )      (628 )      (441 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans charged-off

     (4,300 )      (3,243 )      (9,548 )      (7,374 )      (5,017 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Recoveries:

          

Commercial and industrial

     339        212        354        897        282   

Real estate

          

Consumer mortgages

     499        455        596        461        1,024   

Home equity

     246        80        123        90        185   

Agricultural

     96        36        20        59        36   

Commercial and industrial-owner occupied

     101        125        307        1,831        146   

Construction, acquisition and development

     524        272        1,061        1,084        8,978   

Commercial real estate

     509        683        149        187        600   

Credit cards

     199        181        152        170        183   

All other

     216        247        235        292        235   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total recoveries

     2,729        2,291        2,997        5,071        11,669   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net (charge-offs) recoveries

     (1,571 )      (952 )      (6,551 )      (2,303 )      6,652   

Provision charged to operating expense

     2,000        1,000        —          (3,000 )      (5,000 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance, end of period

   $ 126,935      $ 126,506      $ 126,458      $ 133,009      $ 138,312   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Average loans for period

   $ 10,513,732      $ 10,372,925      $ 10,321,299      $ 10,110,995      $ 9,868,318   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio:

          

Net (charge-offs) recoveries to average loans (annualized)

     0.06 %      0.04 %      0.25 %      0.09 %      (0.27 %) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Second Quarter Results

Page 14

July 20, 2016

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

    Quarter Ended  
    Jun-16     Mar-16     Dec-15     Sep-15     Jun-15  

NON-PERFORMING ASSETS

          

NON-PERFORMING LOANS AND LEASES:

          

Nonaccrual Loans and Leases

          

Commercial and industrial

   $ 8,675      $ 10,248      $ 8,493      $ 15,697      $ 9,740   

Real estate

          

Consumer mortgages

     19,309        22,968        21,637        21,959        21,636   

Home equity

     2,734        3,564        4,021        3,664        3,550   

Agricultural

     1,107        932        921        484        259   

Commercial and industrial-owner occupied

     16,021        16,633        16,512        12,690        14,007   

Construction, acquisition and development

     6,086        7,720        9,130        4,240        5,411   

Commercial real estate

     14,197        19,417        21,741        10,730        12,397   

Credit cards

     159        188        188        215        157   

All other

     350        256        385        558        609   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total nonaccrual loans and leases

   $ 68,638      $ 81,926      $ 83,028      $ 70,237      $ 67,766   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

     1,875        4,567        2,013        1,436        1,568   

Restructured Loans and Leases, Still Accruing

     9,687        7,753        9,876        18,578        10,109   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total non-performing loans and leases

     80,200        94,246        94,917        90,251        79,443   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

OTHER REAL ESTATE OWNED:

     14,658        12,685        14,759        23,696        24,299   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Non-performing Assets

   $ 94,858      $ 106,931      $ 109,676      $ 113,947      $ 103,742   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Additions to Nonaccrual Loans and Leases During the Quarter

   $ 10,553      $ 15,933      $ 34,050      $ 22,271      $ 35,315   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

          

Commercial and industrial

   $ 3,748      $ 3,758      $ 2,409      $ 4,985      $ 3,081   

Real estate

          

Consumer mortgages

     15,784        11,985        15,128        10,789        10,622   

Home equity

     2,842        2,414        2,456        1,455        2,527   

Agricultural

     367        240        303        393        116   

Commercial and industrial-owner occupied

     2,854        669        1,018        3,888        2,643   

Construction, acquisition and development

     1,137        1,489        1,070        1,218        1,120   

Commercial real estate

     3,776        1,831        830        798        1,651   

Credit cards

     677        569        677        788        529   

All other

     712        606        744        1,334        1,481   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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

   $ 31,897      $ 23,561      $ 24,635      $ 25,648      $ 23,770   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Credit Quality Ratios:

          

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

     0.08 %      0.04 %      0.00 %      (0.12 %)      (0.20 %) 

Allowance for credit losses to net loans and leases

     1.20 %      1.21 %      1.22 %      1.30 %      1.38 % 

Allowance for credit losses to non-performing loans and leases

     158.27 %      134.23 %      133.23 %      147.38 %      174.10 % 

Allowance for credit losses to non-performing assets

     133.82 %      118.31 %      115.30 %      116.73 %      133.32 % 

Non-performing loans and leases to net loans and leases

     0.76 %      0.90 %      0.92 %      0.88 %      0.79 % 

Non-performing assets to net loans and leases

     0.90 %      1.02 %      1.06 %      1.11 %      1.04 % 

 

- MORE -

BXS Announces Second Quarter Results

Page 15

July 20, 2016

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

    June 30, 2016  
    Pass     Special
Mention		     Substandard     Doubtful     Loss     Impaired     Total  

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

              

Commercial and industrial

   $ 1,654,279      $ —        $ 36,866      $ 91      $ 384      $ 6,469      $ 1,698,089   

Real estate

              

Consumer mortgages

     2,482,105        298        66,614        14        —          958        2,549,989   

Home equity

     603,039        —          10,163        —          —          1,484        614,686   

Agricultural

     242,721        —          8,085        —          —          760        251,566   

Commercial and industrial-owner occupied

     1,585,978        516        45,682        375        —          12,067        1,644,618   

Construction, acquisition and development

     1,003,045        —          12,809        —          —          5,364        1,021,218   

Commercial real estate

     2,202,501        —          38,867        151        —          13,134        2,254,653   

Credit cards

     108,101        —          —          —          —          —          108,101   

All other

     424,932        —          8,027        99        —          —          433,058   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

   $ 10,306,701      $ 814      $ 227,113      $ 730      $ 384      $ 40,236      $ 10,575,978   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
    March 31, 2016  
    Pass     Special
Mention		     Substandard     Doubtful     Loss     Impaired     Total  

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

              

Commercial and industrial

   $ 1,672,249      $ —        $ 35,633      $ 394      $ —        $ 8,201      $ 1,716,477   

Real estate

              

Consumer mortgages

     2,407,869        —          69,215        11        —          3,733        2,480,828   

Home equity

     593,500        —          9,938        —          —          1,790        605,228   

Agricultural

     229,935        —          8,632        —          —          855        239,422   

Commercial and industrial-owner occupied

     1,595,424        —          47,293        —          —          11,860        1,654,577   

Construction, acquisition and development

     944,533        —          15,908        —          —          5,921        966,362   

Commercial real estate

     2,166,616        —          49,440        400        —          17,286        2,233,742   

Credit cards

     106,714        —          —          —          —          —          106,714   

All other

     436,409        —          4,838        100        —          —          441,347   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

   $ 10,153,249      $ —        $ 240,897      $ 905      $  —        $ 49,646      $ 10,444,697   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Second Quarter Results

Page 16

July 20, 2016

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)

 

    June 30, 2016  
    Alabama
and Florida
Panhandle		     Arkansas     Louisiana     Mississippi     Missouri     Tennessee     Texas     Other     Total  

LOAN AND LEASE PORTFOLIO:

                  

Commercial and industrial

   $ 146,268      $ 198,348      $ 196,156      $ 680,183      $ 93,190      $ 117,291      $ 221,574      $ 45,079      $ 1,698,089   

Real estate

                  

Consumer mortgages

     318,323        326,634        225,181        815,895        80,713        286,004        472,988        24,251        2,549,989   

Home equity

     93,400        43,484        67,923        226,158        23,427        145,122        13,701        1,471        614,686   

Agricultural

     7,684        79,186        27,600        67,078        3,571        13,942        52,505        —          251,566   

Commercial and industrial-owner occupied

     199,074        174,811        198,307        668,400        49,294        140,535        214,197        —          1,644,618   

Construction, acquisition and development

     121,768        102,732        55,618        322,841        22,212        148,243        247,804        —          1,021,218   

Commercial real estate

     346,711        359,930        227,451        613,773        198,254        176,006        330,778        1,750        2,254,653   

Credit cards

     —          —          —          —          —          —          —          108,101        108,101   

All other

     71,387        47,848        29,070        172,686        4,189        34,789        53,328        19,761        433,058   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

   $ 1,304,615      $ 1,332,973      $ 1,027,306      $ 3,567,014      $ 474,850      $ 1,061,932      $ 1,606,875      $ 200,413      $ 10,575,978   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NON-PERFORMING LOANS AND LEASES:

                  

Commercial and industrial

   $ 124      $ 519      $ 2,933      $ 5,620      $ —        $ 181      $ 1,547      $ 1,002      $ 11,926   

Real estate

                  

Consumer mortgages

     731        3,037        2,003        6,532        1,117        695        1,541        6,239        21,895   

Home equity

     390        1,302        224        428        —          392        —          2        2,738   

Agricultural

     —          —          —          1,192        —          —          —          —          1,192   

Commercial and industrial-owner occupied

     1,842        2,099        1,794        9,107        1,808        47        630        —          17,327   

Construction, acquisition and development

     54        569        21        5,559        1,180        —          48        —          7,431   

Commercial real estate

     904        1,093        1,564        11,593        —          —          160        —          15,314   

Credit cards

     —          —          —          —          —          —          —          1,261        1,261   

All other

     99        688        70        184        —          37        —          38        1,116   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

   $ 4,144      $ 9,307      $ 8,609      $ 40,215      $ 4,105      $ 1,352      $ 3,926      $ 8,542      $ 80,200   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NON-PERFORMING LOANS AND LEASES AS A PERCENTAGE OF OUTSTANDING:

                  

Commercial and industrial

     0.08 %      0.26 %      1.50 %      0.83 %      0.00 %      0.15 %      0.70 %      2.22 %      0.70 % 

Real estate

                  

Consumer mortgages

     0.23 %      0.93 %      0.89 %      0.80 %      1.38 %      0.24 %      0.33 %      25.73 %      0.86 % 

Home equity

     0.42 %      2.99 %      0.33 %      0.19 %      0.00 %      0.27 %      0.00 %      0.14 %      0.45 % 

Agricultural

     0.00 %      0.00 %      0.00 %      1.78 %      0.00 %      0.00 %      0.00 %      N/A        0.47 % 

Commercial and industrial-owner occupied

     0.93 %      1.20 %      0.90 %      1.36 %      3.67 %      0.03 %      0.29 %      N/A        1.05 % 

Construction, acquisition and development

     0.04 %      0.55 %      0.04 %      1.72 %      5.31 %      0.00 %      0.02 %      N/A        0.73 % 

Commercial real estate

     0.26 %      0.30 %      0.69 %      1.89 %      0.00 %      0.00 %      0.05 %      N/A        0.68 % 

Credit cards

     N/A        N/A        N/A        N/A        N/A        N/A        N/A        1.17 %      1.17 % 

All other

     0.14 %      1.44 %      0.24 %      0.11 %      0.00 %      0.11 %      0.00 %      0.19 %      0.26 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total loans

     0.32 %      0.70 %      0.84 %      1.13 %      0.86 %      0.13 %      0.24 %      4.26 %      0.76 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Second Quarter Results

Page 17

July 20, 2016

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

 

    Quarter Ended     YTD  
    Jun-16     Mar-16     Dec-15     Sep-15     Jun-15     Jun-16     Jun-15  

NONINTEREST REVENUE:

              

Mortgage banking

   $ 9,043      $ 2,618      $ 10,522      $ 2,339      $ 14,102      $ 11,661      $ 22,669   

Credit card, debit card and merchant fees

     9,495        8,961        9,414        9,282        9,298        18,456        17,837   

Deposit service charges

     11,018        11,014        11,836        12,150        11,527        22,032        22,779   

Securities gains, net

     86        2        48        33        41        88        55   

Insurance commissions

     28,803        33,249        25,348        28,584        29,319        62,052        62,812   

Trust income

     3,493        3,430        3,469        3,653        3,543        6,923        7,579   

Annuity fees

     465        477        449        539        470        942        1,028   

Brokerage commissions and fees

     1,389        1,202        1,457        1,375        1,495        2,591        3,111   

Bank-owned life insurance

     1,813        1,893        1,881        1,842        1,835        3,706        3,734   

Other miscellaneous income

     4,078        2,669        2,962        3,156        2,684        6,747        6,025   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total noninterest revenue

   $ 69,683      $ 65,515      $ 67,386      $ 62,953      $ 74,314      $ 135,198      $ 147,629   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

NONINTEREST EXPENSE:

              

Salaries and employee benefits

   $ 81,832      $ 82,467      $ 80,177      $ 81,354      $ 79,759        164,299      $ 160,938   

Occupancy, net of rental income

     10,109        10,273        10,434        10,819        10,419        20,382        20,613   

Equipment

     3,295        3,765        3,569        3,742        4,024        7,060        7,998   

Deposit insurance assessments

     2,582        2,288        2,630        2,191        2,377        4,870        4,688   

Regulatory settlement

     —          10,277        —          —          —          10,277        —     

Advertising

     1,043        633        1,009        812        1,686        1,676        2,467   

Foreclosed property expense

     1,309        1,181        3,014        808        1,625        2,490        3,596   

Telecommunications

     1,259        1,295        1,322        1,267        1,323        2,554        2,637   

Public relations

     599        661        702        588        794        1,260        1,479   

Data processing

     6,685        6,391        6,092        6,156        5,898        13,076        11,900   

Computer software

     2,732        2,660        2,609        2,595        2,690        5,392        5,296   

Amortization of intangibles

     869        880        922        948        1,061        1,749        2,093   

Legal

     1,754        4,535        19,434        1,233        1,998        6,289        9,679   

Merger expense

     1        1        13        8        4        2        4   

Postage and shipping

     985        1,117        1,139        1,030        1,194        2,102        2,366   

Other miscellaneous expense

     13,664        13,876        15,285        12,899        13,325        27,540        29,356   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total noninterest expense

   $ 128,718      $ 142,300      $ 148,351      $ 126,450      $ 128,177      $ 271,018      $ 265,110   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INSURANCE COMMISSIONS:

              

Property and casualty commissions

   $ 20,417      $ 19,877      $ 18,814      $ 21,155      $ 21,145      $ 40,294      $ 41,818   

Life and health commissions

     6,252        5,615        5,823        5,775        6,202      $ 11,867        11,614   

Risk management income

     592        623        672        709        637      $ 1,215        1,303   

Other

     1,542        7,134        39        945        1,335      $ 8,676        8,077   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total insurance commissions

   $ 28,803      $ 33,249      $ 25,348      $ 28,584      $ 29,319      $ 62,052      $ 62,812   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Second Quarter Results

Page 18

July 20, 2016

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

    Quarter Ended  
    Jun-16     Mar-16     Dec-15     Sep-15     Jun-15  

MORTGAGE SERVICING RIGHTS:

          

Fair value, beginning of period

   $ 50,544      $ 57,268      $ 52,973      $ 55,924      $ 49,190   

Additions to mortgage servicing rights:

          

Originations of servicing assets

     3,723        2,612        3,065        4,231        4,344   

Changes in fair value:

          

Due to payoffs/paydowns

     (2,066 )      (1,380 )      (1,633 )      (1,872 )      (1,930 ) 

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

     (4,092 )      (7,954 )      2,865        (5,308 )      4,321   

Other changes in fair value

     (1 )      (2 )      (2 )      (2 )      (1 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fair value, end of period

   $ 48,108      $ 50,544      $ 57,268      $ 52,973      $ 55,924   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Production revenue:

          

Origination

   $ 10,523      $ 7,208      $ 4,909      $ 5,154      $ 7,395   

Servicing

     4,678        4,744        4,381        4,365        4,316   

Payoffs/Paydowns

     (2,066 )      (1,380 )      (1,633 )      (1,872 )      (1,930 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total production revenue

     13,135        10,572        7,657        7,647        9,781   

Market value adjustment

     (4,092 )      (7,954 )      2,865        (5,308 )      4,321   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total mortgage banking revenue

   $ 9,043      $ 2,618      $ 10,522      $ 2,339      $ 14,102   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Mortgage loans serviced

   $ 6,156,258      $ 6,096,220      $ 6,011,236      $ 5,942,736      $ 5,802,407   

MSR/mtg loans serviced

     0.78 %      0.83 %      0.95 %      0.89 %      0.96 % 

AVAILABLE-FOR-SALE SECURITIES, at fair value

          

U.S. Government agencies

   $ 1,310,803      $ 1,196,167      $ 1,244,640      $ 1,255,717      $ 1,336,846   

Government agency issued residential mortgage-back securities

     180,178        189,741        140,540        206,878        217,191   

Government agency issued commercial mortgage-back securities

     193,475        207,908        260,693        229,922        224,450   

Obligations of states and political subdivisions

     399,391        408,537        417,499        451,600        458,322   

Other

     20,036        14,020        18,957        17,008        14,344   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total available-for-sale securities

   $ 2,103,883      $ 2,016,373      $ 2,082,329      $ 2,161,125      $ 2,251,153   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

- MORE -

BXS Announces Second Quarter Results

Page 19

July 20, 2016

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures and Other Ratio Definitions

(Dollars in thousands, except per share amounts)

(Unaudited)

Management evaluates the Company’s capital position and operating performance by utilizing certain financial measures not calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including net operating income, net operating income-excluding MSR, tangible shareholders’ equity to tangible assets, return on tangible equity, operating return on tangible equity-excluding MSR, operating return on average assets-excluding MSR, operating return on average shareholders’ equity-excluding MSR, tangible book value per share, operating earnings per share, operating earnings per share-excluding MSR, efficiency ratio (tax equivalent) and operating efficiency ratio-excluding MSR (tax equivalent). The Company has included these non-GAAP financial measures in this news release for the applicable periods presented. Management believes that the presentation of these non-GAAP financial measures (i) provides important supplemental information that contributes to a proper understanding of the Company’s capital position and operating performance, (ii) enables a more complete understanding of factors and trends affecting the Company’s business and (iii) allows investors to evaluate the Company’s performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below. These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies’ non-GAAP financial measures having the same or similar names.

Reconciliation of Net Operating Income and Net Operating Income-Excluding MSR to Net Income:

 

     Quarter ended  
     6/30/2016     3/31/2016     12/31/2015      9/30/2015     6/30/2015  

Net income

    $ 34,692      $ 22,549      $ 21,169       $ 34,343      $ 39,713   

Plus: Merger expense, net of tax

      1        1        8         5        3   

Legal charge, net of tax

      —          —          10,246         —          —     

Regulatory related charges, net of tax

      —          9,412        —           —          —     

Less: Security gains, net of tax

      53        2        30         20        26   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net operating income

    $ 34,640      $ 31,960      $ 31,393       $ 34,328      $ 39,690   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Less: MSR market value adjustment, net of tax

      (2,537 )      (4,931 )      1,776         (3,291 )      2,679   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net operating income-excluding MSR

    $ 37,177      $ 36,891      $ 29,617       $ 37,619      $ 37,011   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

- MORE -

BXS Announces Second Quarter Results

Page 20

July 20, 2016

 

BancorpSouth, Inc.

Reconciliation of Non-GAAP Measures and Other Ratio Definitions

(Dollars in thousands, except per share amounts)

(Unaudited)

Reconciliation of Tangible Assets and Tangible Shareholders’ Equity to

Total Assets and Total Shareholders’ Equity:

 

     Quarter ended  
     6/30/2016     3/31/2016     12/31/2015     9/30/2015     6/30/2015  

Tangible assets

           

Total assets

    $ 14,137,160      $ 13,926,398      $ 13,798,662      $ 13,787,424      $ 13,634,931   

Less: Goodwill

      294,901        291,498        291,498        291,498        291,498   

Other identifiable intangible assets

      20,831        19,664        20,545        21,466        22,415   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total tangible assets

    $ 13,821,428      $ 13,615,236      $ 13,486,619      $ 13,474,460      $ 13,321,018   

Tangible shareholders’ equity

           

Total shareholders’ equity

    $ 1,713,043      $ 1,679,793      $ 1,655,444      $ 1,644,820      $ 1,680,196   

Less: Goodwill

      294,901        291,498        291,498        291,498        291,498   

Other identifiable intangible assets

      20,831        19,664        20,545        21,466        22,415   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total tangible shareholders’ equity

    $ 1,397,311      $ 1,368,631      $ 1,343,401      $ 1,331,856      $ 1,366,283   

Total average assets

    $ 14,027,786      $ 13,851,661      $ 13,724,595      $ 13,632,581      $ 13,516,546   

Total common shares outstanding

      94,546,091        94,438,626        94,162,728        93,969,994        96,755,530   

Average shares outstanding-diluted

      94,694,795        94,593,540        94,384,443        96,467,728        96,957,441   

Tangible shareholders’ equity to tangible assets (1)

      10.11 %      10.05 %      9.96 %      9.88 %      10.26 % 

Return on tangible equity (2)

      9.99 %      6.63 %      6.25 %      10.23 %      11.66 % 

Operating return on tangible equity-excluding MSR (3)

      10.70 %      10.84 %      8.75 %      11.21 %      10.87 % 

Operating return on average assets-excluding MSR (4)

      1.07 %      1.07 %      0.86 %      1.09 %      1.10 % 

Operating return on average shareholders’ equity-excluding MSR (5)

      8.84 %      8.89 %      7.12 %      8.88 %      8.94 % 

Tangible book value per share (6)

    $ 14.78      $ 14.49      $ 14.27      $ 14.17      $ 14.12   

Operating earnings per share (7)

    $ 0.37      $ 0.34      $ 0.33      $ 0.36      $ 0.41   

Operating earnings per share-excluding MSR (8)

    $ 0.39      $ 0.39      $ 0.31      $ 0.39      $ 0.39   

 

(1) Tangible shareholders’ equity to tangible assets is defined by the Company as total shareholders’ equity less goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill and other identifiable intangible assets.
(2) Return on tangible equity is defined by the Company as annualized net income divided by tangible shareholders’ equity.
(3) Operating return on tangible equity-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by tangible shareholders’ equity.
(4) Operating return on average assets-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by total average assets.
(5) Operating return on average shareholders’ equity-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by average shareholders’ equity.
(6) Tangible book value per share is defined by the Company as tangible shareholders’ equity divided by total common shares outstanding.
(7) Operating earnings per share is defined by the Company as net operating income divided by average shares outstanding-diluted.
(8) Operating earnings per share-excluding MSR is defined by the Company as net operating income-excluding MSR divided by average shares outstanding-diluted.

Efficiency Ratio (tax equivalent) and Operating Efficiency Ratio-excluding MSR (tax equivalent) Definitions

The efficiency ratio (tax equivalent) and the operating efficiency ratio-excluding MSR (tax equivalent) are supplemental financial measures utilized in management’s internal evaluation of the Company’s use of resources and are not defined under GAAP. The efficiency ratio (tax equivalent) is calculated by dividing total noninterest expense by total revenue, which includes net interest income plus noninterest income plus the tax equivalent adjustment. The operating efficiency ratio-excluding MSR (tax equivalent) excludes expense items otherwise disclosed as non-operating from total noninterest expense. In addition, the MSR valuation adjustment as well as securities gains and losses are excluded from total revenue.

 

- END -