BancorpSouth Announces Third Quarter 2017 Financial Results
TUPELO, Miss., Oct. 18, 2017 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended September 30, 2017.
Highlights for the third quarter of 2017 included:
- Net income of $39.5 million, or $0.43 per diluted share.
- Net operating income – excluding MSR – of $39.6 million, or $0.43 per diluted share.
- Net interest margin increased to 3.58 percent.
- Credit quality remained strong; recorded provision for credit losses of $0.5 million for the quarter.
- Total operating expense declined compared to the second quarter of 2017 and the third quarter of 2016 and operating efficiency ratio – excluding MSR – improved to 67.2 percent.
- Repurchased 699,888 shares of outstanding common stock at a weighted average price of $28.99 per share.
- Announced a corporate entity restructuring, whereby the holding company structure will be eliminated through the merger of BancorpSouth, Inc. with and into its wholly owned subsidiary, BancorpSouth Bank (the "Bank") with the Bank continuing as the surviving entity (the "Reorganization").
- On October 6, 2017, the Bank received results from the Federal Deposit Insurance Corporation (the "FDIC") 2017 Community Reinvestment Act ("CRA") examination, which reflected an overall CRA rating of "Satisfactory".
The Company reported net income of $39.5 million, or $0.43 per diluted share, for the third quarter of 2017 compared with net income of $37.8 million, or $0.40 per diluted share, for the third quarter of 2016 and net income of $37.9 million, or $0.41 per diluted share, for the second quarter of 2017.
The Company reported net operating income – excluding MSR – of $39.6 million, or $0.43 per diluted share, for the third quarter of 2017 compared to $36.7 million, or $0.39 per diluted share, for the third quarter of 2016 and $38.8 million, or $0.42 per diluted share, for the second quarter of 2017. Net operating income – excluding MSR – is a non-GAAP financial measure used by management to assess the core operating performance of the Company. This measure excludes items such as securities gains and losses, mortgage servicing rights ("MSR") valuation adjustments, restructuring charges, merger-related expenses, industry-related legal settlements, and other one-time charges.
"First and foremost, we are pleased to have recently received positive results regarding our CRA examination," remarked Dan Rollins, Chairman and Chief Executive Officer. "We have consistently communicated our teammates' commitment to the communities we serve as well as our priority to meet or exceed all regulatory requirements and expectations. We are excited to have this examination behind us as we look to continue to execute our strategic plan."
"Further, our third quarter results reflect yet another quarter of continued steady improvement in our profitability and performance metrics. Our net interest margin increased to 3.58 percent for the quarter, which is the result of continued loan yield pickup from recent rate increases combined with our stable core deposit base. Total operating expenses declined for the quarter, which resulted in a decline in the operating efficiency ratio – excluding MSR – to 67.2 percent. These successes contributed to improvement in our quarterly return on assets to 1.07 percent. Finally, we continue to diligently manage our capital levels, as we repurchased approximately 0.7 million shares during the quarter at a weighted average price of $28.99 per share."
Net Interest Revenue
Net interest revenue was $120.6 million for the third quarter of 2017, an increase of 5.2 percent from $114.6 million for the third quarter of 2016 and an increase of 2.6 percent from $117.5 million for the second quarter of 2017. The fully taxable equivalent net interest margin was 3.58 percent for the third quarter of 2017 compared to 3.51 percent for the third quarter of 2016 and 3.52 percent for the second quarter of 2017. Yields on loans and leases were 4.33 percent for the third quarter of 2017 compared with 4.20 percent for the third quarter of 2016 and 4.27 percent for the second quarter of 2017, while yields on total interest earning assets were 3.89 percent for the third quarter of 2017 compared with 3.74 percent for the third quarter of 2016 and 3.80 percent for the second quarter of 2017. The average cost of deposits was 0.26 percent for the third quarter of 2017 compared to 0.22 percent for the third quarter of 2016 and 0.25 percent for the second quarter of 2017.
Asset, Deposit and Loan Activity
Total assets were $14.8 billion at September 30, 2017 compared with $14.6 billion at September 30, 2016. Loans and leases, net of unearned income, were $11.1 billion at September 30, 2017 compared with $10.7 billion at September 30, 2016.
Total deposits were $11.8 billion at September 30, 2017 compared with $11.6 billion at September 30, 2016. Time deposits decreased $72.4 million, or 3.9 percent, at September 30, 2017 compared to September 30, 2016. Over the same time period, interest bearing demand deposits increased $47.6 million, or 1.0 percent, while noninterest bearing demand deposits increased $106.0 million, or 3.2 percent, and savings deposits increased $104.6 million, or 6.8 percent.
Provision for Credit Losses and Allowance for Credit Losses
Earnings for the third quarter reflect a provision for credit losses of $0.5 million, compared to no provision for the third quarter of 2016 and a provision of $1.0 million for the second quarter of 2017. Net charge-offs for the third quarter of 2017 were $2.6 million, compared with net charge-offs of $1.0 million for the third quarter of 2016 and net charge-offs of $4.6 million for the second quarter of 2017. The allowance for credit losses was $119.5 million, or 1.08 percent of net loans and leases, at September 30, 2017, compared with $125.9 million, or 1.18 percent of net loans and leases, at September 30, 2016 and $121.6 million, or 1.10 percent of net loans and leases, at June 30, 2017.
Total non-performing assets were $71.0 million, or 0.64 percent of net loans and leases, at September 30, 2017 compared with $102.3 million, or 0.96 percent of net loans and leases, at September 30, 2016, and $79.4 million, or 0.72 percent of net loans and leases, at June 30, 2017. Other real estate owned was $6.0 million at September 30, 2017 compared with $11.4 million at September 30, 2016 and $7.7 million at June 30, 2017.
Noninterest Revenue
Noninterest revenue was $66.0 million for the third quarter of 2017, compared with $69.7 million for the third quarter of 2016 and $68.1 million for the second quarter of 2017. These results included the MSR valuation adjustment, which was essentially flat for the third quarter of 2017, compared with a positive MSR valuation adjustment of $1.8 million for the third quarter of 2016 and a negative MSR valuation adjustment of $1.5 million for the second quarter of 2017. 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 $7.0 million for the third quarter of 2017, compared with $9.3 million for the third quarter of 2016 and $7.6 million for the second quarter of 2017. Mortgage origination volume for the third quarter of 2017 was $342.4 million, compared with $478.2 million for the third quarter of 2016 and $385.9 million for the second quarter of 2017.
Credit and debit card fee revenue was $9.3 million for the third quarter of 2017, compared with $9.3 million for the third quarter of 2016 and $9.6 million for the second quarter of 2017. Deposit service charge revenue was $10.4 million for the third quarter of 2017, compared with $11.3 million for the third quarter of 2016 and $9.7 million for the second quarter of 2017. Insurance commission revenue was $28.6 million for the third quarter of 2017, compared with $28.2 million for the third quarter of 2016 and $31.1 million for the second quarter of 2017. Wealth management revenue was $5.4 million for the third quarter of 2017, compared with $5.3 million for both the third quarter of 2016 and the second quarter of 2017.
Noninterest Expense
Noninterest expense for the third quarter of 2017 was $126.9 million, compared with $128.3 million for the third quarter of 2016 and $127.6 million for the second quarter of 2017. Salaries and employee benefits expense was $81.4 million for the third quarter of 2017 compared to $80.9 million for the third quarter of 2016 and $81.6 million for the second quarter of 2017. Occupancy expense was $10.3 million for the third quarter of 2017, compared with $10.4 million for the third quarter of 2016 and $10.5 million for the second quarter of 2017. Other noninterest expense was $29.3 million for the third quarter of 2017, compared to $30.4 million for the third quarter of 2016 and $29.8 million for the second quarter of 2017.
Capital Management
The Company's equity capitalization is comprised entirely of common stock. BancorpSouth's ratio of shareholders' equity to assets was 11.52 percent at September 30, 2017, compared with 11.80 percent at September 30, 2016 and 11.40 percent at June 30, 2017. The ratio of tangible shareholders' equity to tangible assets was 9.56 percent at September 30, 2017, compared with 9.86 percent at September 30, 2016 and 9.44 percent at June 30, 2017.
During the third quarter of 2017, the Company repurchased 699,888 shares of its outstanding common stock at a weighted average price of $28.99 per share pursuant to its share repurchase program which is intended to comply with Rules 10b-18 and 10b5-1 promulgated under the Securities and Exchange Act of 1934, as amended. During the second quarter of 2017, the Company repurchased 1,381,634 shares at a weighted average price of $29.64 per share. As of September 30, 2017, the Company had 2,316,727 remaining shares available for repurchase under its current share repurchase authorization, which expires on December 29, 2017.
Estimated regulatory capital ratios at September 30, 2017 were calculated in accordance with the Basel III capital framework. BancorpSouth is a "well capitalized" bank holding company, as defined by federal regulations, at September 30, 2017, with Tier 1 risk-based capital of 12.04 and total risk-based capital of 13.03 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification.
TRANSACTIONS
The Reorganization
On July 26, 2017, the Company, as part of a plan to effect a corporate entity restructuring, entered into an Agreement and Plan of Reorganization with the Bank. Thereafter, on August 15, 2017, the Company and the Bank entered into an Amended and Restated Agreement and Plan of Reorganization (the "Amended Plan of Reorganization") which provides that the Company will be merged with and into the Bank with the Bank continuing as the surviving entity. Upon completion of the Reorganization, the separate existence of the Company will cease, and all of the rights, privileges, powers, franchises, properties, assets, liabilities and obligations of the Company will be vested in and assumed by the Bank.
The Reorganization and the Amended Plan of Reorganization are described in more detail in the Company's Definitive Proxy Statement on Schedule 14A that was filed with the Securities and Exchange Commission (the "SEC") on August 29, 2017. The Board of Directors of the Company and the Bank each unanimously adopted the Amended Plan of Reorganization, and the shareholders of the Company approved the Amended Plan of Reorganization on September 27, 2017. The Company currently expects to complete the Reorganization during the fourth quarter, assuming that all of the conditions to completion of the Reorganization have been satisfied. The Company, however, can provide no assurances that the Reorganization will close in a timely manner or at all.
Waguespack & Associates Insurance, Inc.
On December 19, 2016, BancorpSouth Insurance Services, Inc. announced and closed the acquisition of certain assets of Gonzales, Louisiana based Waguespack & Associates Insurance, Inc. The agency was formed in 1986 and is expected to produce annual revenues of approximately $3 million. Waguespack will continue to operate under current leadership in its current location in Gonzales.
Central Community Corporation
On January 21, 2014, the Company announced the signing of a definitive merger agreement (the "CCC Merger Agreement") with Central Community Corporation ("CCC"), headquartered in Temple, Texas, pursuant to which CCC agreed to be merged with and into the Company (the "CCC Merger"). CCC 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 September 30, 2017, CCC, on a consolidated basis, reported total assets of $1.4 billion, total loans of $706.8 million and total deposits of $1.2 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 terms of the 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.
For more information regarding the CCC Merger and the CCC Merger Agreement, please refer to the Company's Proxy Statement/Prospectus that was filed with the SEC on March 24, 2014 and the Company's Current Reports on Form 8-K that were filed with the SEC on July 24, 2014, July 1, 2015, October 14, 2016 and August 16, 2017. As previously reported in the Company's Current Report on Form 8-K filed on August 16, 2017, the Company, CCC and the Bank entered into a fourth amendment to the CCC Merger Agreement that, among other things, provides for the substitution of the Bank for the Company as a party to the CCC Merger Agreement with the Bank assuming all obligations of the Company under the CCC Merger Agreement ("CCC Amendment No. 4"). CCC Amendment No. 4 will become effective simultaneously with the effectiveness of the Reorganization.
The CCC Merger was unanimously approved by the Board of Directors of the Company and CCC and was approved by CCC shareholders on April 24, 2014. The CCC Merger Agreement has been extended until December 31, 2017 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. The Company expects the CCC Merger to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the CCC Merger will close timely or at all.
Ouachita Bancshares Corp.
On January 8, 2014, the Company announced the signing of a definitive merger agreement (the "OIB 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. agreed to be merged with and into the Company (the "OIB Merger"). OIB operates 11 full-service banking offices along the I-20 corridor and has a loan production office in Madison, Mississippi. As of September 30, 2017, OIB, on a consolidated basis, reported total assets of $730.2 million, total loans of $497.7 million and total deposits of $607.0 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 terms of the 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.
For more information regarding the OIB Merger and the OIB Merger Agreement, please refer to the Company's Proxy Statement/Prospectus that was filed with the SEC on March 10, 2014 and the Company's Current Reports on Form 8-K that were filed with the SEC on July 24, 2014, July 1, 2015, October 14, 2016 and August 16, 2017. As previously reported in the Company's Current Report on Form 8-K filed on August 16, 2017, the Company, OIB and the Bank entered into a fourth amendment to the OIB Merger Agreement that, among other things, provides for the substitution of the Bank for the Company as a party to the OIB Merger Agreement with the Bank assuming all obligations of the Company under the OIB Merger Agreement ("OIB Amendment No. 4"). OIB Amendment No. 4 will become effective simultaneously with the effectiveness of the Reorganization.
The OIB Merger was unanimously approved by the Board of Directors of the Company and OIB and was approved by OIB shareholders on April 8, 2014. The OIB Merger Agreement has been extended until December 31, 2017 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. The Company expects the OIB Merger to close shortly after receiving all required regulatory approvals, although the Company can provide no assurance that the OIB Merger will close timely or at all.
Summary
Rollins concluded, "While our story seems repetitive quarter after quarter, we are extremely proud of the progress we are making as a company. We continue to take actions to simplify our business model and improve efficiency, as evidenced by the proposed elimination of our holding company structure. This transaction has been approved by our shareholders and is currently pending regulatory approval. As we look forward, our business development teams are focused on calling on customers and growing our company. I'm confident their efforts, combined with our focus on efficiency, will allow us to continue to deliver improved performance to our shareholders."
Non-GAAP Measures and Ratios
This news release presents certain financial measures and ratios that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears under the caption "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions" beginning on page 19 of this news release.
Conference Call and Webcast
BancorpSouth will conduct a conference call to discuss its third quarter 2017 results on October 19, 2017, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Shareholders and other interested parties may listen to this live conference call via Internet webcast by accessing www.BancorpSouth.com/Webcast. The webcast will also be available in archived format at the same address.
About BancorpSouth
BancorpSouth (NYSE: BXS) is headquartered in Tupelo, Mississippi, with $14.8 billion in assets. BancorpSouth operates 234 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.
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 closing of the Reorganization, the proposed impact of the Reorganization on the Bank, the ability of the Company and the Bank to close the Reorganization in a timely manner or at all, the terms, timing and closings of the proposed mergers with Ouachita Bancshares Corp. and Central Community Corporation, 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 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 and the United States Department of Justice related to the Company's fair lending practices (the "Consent Order"), 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, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, 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, the impact of interest rates on loan yields, calculation of economic value of equity, impaired loan charge-offs, diversification of the Company's revenue stream, the growth of the Company's insurance business and commission revenue, the growth of the Company's customer base and loan, deposit and fee revenue sources, liquidity needs and strategies, sources of funding, net interest margin, declaration and payment of dividends, the utilization of the Company's share repurchase program, the implementation and execution of 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, the potential impact upon the Company of the delay in the closings of these proposed mergers, the ability of the Company and the Bank to complete the Reorganization, the ability of the Company and the Bank to satisfy the conditions to the completion of the Reorganization, including the receipt of regulatory approvals required for the Reorganization, the ability of the Company and the Bank to meet expectations regarding the timing, completion and accounting and tax treatments of the Reorganization, the possibility that any of the anticipated benefits of the Reorganization will not be realized or will not be realized as expected, the failure of the Reorganization to close for any other reason, the possibility that the Reorganization may be more expensive to complete than anticipated, including as a result of unexpected factors or events, the lack of availability of the Bank's filings mandated by the Exchange Act from the SEC's publicly available website after the closing of the Reorganization, 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, 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 growth of the Company's insurance business and commission revenue, the growth of the Company's loan, deposit and fee revenue sources, 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, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, 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.
| BancorpSouth, Inc. |
|||||||
| Selected Financial Information |
|||||||
| (Dollars in thousands, except per share data) |
|||||||
| (Unaudited) |
|||||||
| Quarter Ended |
Quarter Ended |
Quarter Ended |
Quarter Ended |
Quarter Ended |
Year to Date |
Year to Date |
|
| 9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 |
9/30/2017 |
9/30/2016 |
|
| Earnings Summary: |
|||||||
| Interest revenue |
$ 130,934 |
$ 126,855 |
$ 122,926 |
$ 123,444 |
$ 122,340 |
$ 380,715 |
$ 359,735 |
| Interest expense |
10,373 |
9,377 |
8,315 |
8,057 |
7,750 |
28,065 |
21,670 |
| Net interest revenue |
120,561 |
117,478 |
114,611 |
115,387 |
114,590 |
352,650 |
338,065 |
| Provision for credit losses |
500 |
1,000 |
1,000 |
1,000 |
- |
2,500 |
3,000 |
| Net interest revenue, after provision |
|||||||
| for credit losses |
120,061 |
116,478 |
113,611 |
114,387 |
114,590 |
350,150 |
335,065 |
| Noninterest revenue |
65,960 |
68,130 |
70,869 |
71,975 |
69,673 |
204,959 |
202,926 |
| Noninterest expense |
126,903 |
127,553 |
127,109 |
130,519 |
128,317 |
381,565 |
397,390 |
| Income before income taxes |
59,118 |
57,055 |
57,371 |
55,843 |
55,946 |
173,544 |
140,601 |
| Income tax expense |
19,590 |
19,166 |
19,278 |
18,173 |
18,129 |
58,034 |
45,543 |
| Net income |
$ 39,528 |
$ 37,889 |
$ 38,093 |
$ 37,670 |
$ 37,817 |
$ 115,510 |
$ 95,058 |
| Balance Sheet - Period End Balances |
|||||||
| Total assets |
$ 14,760,394 |
$ 14,843,130 |
$ 14,866,054 |
$ 14,724,388 |
$ 14,611,483 |
$ 14,760,394 |
$ 14,611,483 |
| Total earning assets |
13,606,145 |
13,674,436 |
13,757,920 |
13,549,407 |
13,483,345 |
13,606,145 |
13,483,345 |
| Total securities |
2,359,967 |
2,421,295 |
2,540,887 |
2,531,676 |
2,468,199 |
2,359,967 |
2,468,199 |
| Loans and leases, net of unearned income |
11,055,509 |
11,018,540 |
10,801,694 |
10,811,991 |
10,658,761 |
11,055,509 |
10,658,761 |
| Allowance for credit losses |
119,496 |
121,561 |
125,196 |
123,736 |
125,887 |
119,496 |
125,887 |
| Total deposits |
11,775,988 |
11,938,296 |
12,042,845 |
11,688,141 |
11,590,059 |
11,775,988 |
11,590,059 |
| Long-term debt |
30,000 |
230,000 |
530,000 |
530,000 |
563,495 |
30,000 |
563,495 |
| Total shareholders' equity |
1,700,502 |
1,691,832 |
1,702,389 |
1,723,883 |
1,724,104 |
1,700,502 |
1,724,104 |
| Balance Sheet - Average Balances |
|||||||
| Total assets |
$ 14,710,245 |
$ 14,741,811 |
$ 14,832,260 |
$ 14,655,360 |
$ 14,366,759 |
$ 14,760,991 |
$ 14,083,108 |
| Total earning assets |
13,591,124 |
13,636,415 |
13,715,612 |
13,525,284 |
13,265,266 |
13,647,261 |
13,020,338 |
| Total securities |
2,367,633 |
2,497,108 |
2,507,701 |
2,479,008 |
2,186,889 |
2,456,967 |
2,098,220 |
| Loans and leases, net of unearned income |
11,013,270 |
10,883,102 |
10,820,486 |
10,737,802 |
10,601,481 |
10,906,326 |
10,496,431 |
| Total deposits |
11,802,682 |
11,902,415 |
11,941,851 |
11,700,213 |
11,509,764 |
11,881,806 |
11,459,739 |
| Long-term debt |
162,609 |
398,132 |
530,000 |
534,141 |
430,886 |
362,234 |
240,056 |
| Total shareholders' equity |
1,695,899 |
1,680,053 |
1,731,931 |
1,724,871 |
1,719,503 |
1,702,496 |
1,693,055 |
| Nonperforming Assets: |
|||||||
| Non-accrual loans and leases |
$ 55,796 |
$ 63,585 |
$ 74,439 |
$ 71,812 |
$ 70,725 |
$ 55,796 |
$ 70,725 |
| Loans and leases 90+ days past due, still accruing |
1,855 |
1,793 |
3,063 |
3,983 |
2,255 |
1,855 |
2,255 |
| Restructured loans and leases, still accruing |
7,366 |
6,303 |
4,060 |
26,047 |
17,936 |
7,366 |
17,936 |
| Non-performing loans (NPLs) |
65,017 |
71,681 |
81,562 |
101,842 |
90,916 |
65,017 |
90,916 |
| Other real estate owned |
5,956 |
7,704 |
8,458 |
7,810 |
11,391 |
5,956 |
11,391 |
| Non-performing assets (NPAs) |
$ 70,973 |
$ 79,385 |
$ 90,020 |
$ 109,652 |
$ 102,307 |
$ 70,973 |
$ 102,307 |
| Financial Ratios and Other Data: |
|||||||
| Return on average assets |
1.07% |
1.03% |
1.04% |
1.02% |
1.05% |
1.05% |
0.90% |
| Operating return on average assets-excluding MSR* |
1.07% |
1.06% |
1.01% |
0.83% |
1.02% |
1.04% |
1.05% |
| Return on average shareholders' equity |
9.25% |
9.05% |
8.92% |
8.69% |
8.75% |
9.07% |
7.50% |
| Operating return on average shareholders' equity-excluding MSR* |
9.25% |
9.27% |
8.63% |
7.08% |
8.49% |
9.05% |
8.74% |
| Return on tangible equity* |
11.36% |
11.08% |
11.19% |
10.70% |
10.68% |
11.18% |
9.01% |
| Operating return on tangible equity-excluding MSR* |
11.36% |
11.35% |
10.82% |
8.71% |
10.36% |
11.16% |
10.50% |
| Noninterest income to average assets |
1.78% |
1.85% |
1.94% |
1.95% |
1.93% |
1.86% |
1.92% |
| Noninterest expense to average assets |
3.42% |
3.47% |
3.48% |
3.54% |
3.55% |
3.46% |
3.77% |
| Net interest margin-fully taxable equivalent |
3.58% |
3.52% |
3.46% |
3.46% |
3.51% |
3.52% |
3.55% |
| Net interest rate spread |
3.45% |
3.40% |
3.35% |
3.36% |
3.41% |
3.40% |
3.45% |
| Efficiency ratio (tax equivalent)* |
67.23% |
67.90% |
67.71% |
68.79% |
68.72% |
67.61% |
72.45% |
| Operating efficiency ratio-excluding MSR (tax equivalent)* |
67.24% |
67.33% |
68.43% |
73.14% |
69.39% |
67.66% |
68.67% |
| Loan/deposit ratio |
93.88% |
92.30% |
89.69% |
92.50% |
91.96% |
93.88% |
91.96% |
| Price to earnings multiple (avg) |
19.42 |
18.83 |
19.15 |
22.02 |
18.86 |
19.42 |
18.86 |
| Market value to book value |
170.25% |
164.07% |
164.09% |
168.76% |
126.59% |
170.25% |
126.59% |
| Market value to book value (avg) |
158.92% |
161.24% |
166.39% |
145.61% |
129.73% |
160.35% |
122.22% |
| Market value to tangible book value |
209.66% |
202.52% |
202.32% |
207.63% |
154.87% |
209.66% |
154.87% |
| Market value to tangible book value (avg) |
195.70% |
199.07% |
205.16% |
179.14% |
158.71% |
197.47% |
149.53% |
| Headcount FTE |
3,950 |
3,989 |
3,973 |
3,998 |
3,981 |
3,950 |
3,981 |
| *Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 20 and 21. |
|||||||
| Credit Quality Ratios: |
|||||||
| Net charge-offs (recoveries) to average loans and leases (annualized) |
0.09% |
0.17% |
(0.02%) |
0.12% |
0.04% |
0.08% |
0.05% |
| Provision for credit losses to average loans and leases (annualized) |
0.02% |
0.04% |
0.04% |
0.04% |
0.00% |
0.03% |
0.04% |
| Allowance for credit losses to net loans and leases |
1.08% |
1.10% |
1.16% |
1.14% |
1.18% |
1.08% |
1.18% |
| Allowance for credit losses to non-performing loans and leases |
183.79% |
169.59% |
153.50% |
121.50% |
138.47% |
183.79% |
138.47% |
| Allowance for credit losses to non-performing assets |
168.37% |
153.13% |
139.08% |
112.84% |
123.05% |
168.37% |
123.05% |
| Non-performing loans and leases to net loans and leases |
0.59% |
0.65% |
0.76% |
0.94% |
0.85% |
0.59% |
0.85% |
| Non-performing assets to net loans and leases |
0.64% |
0.72% |
0.83% |
1.01% |
0.96% |
0.64% |
0.96% |
| Equity Ratios: |
|||||||
| Total shareholders' equity to total assets |
11.52% |
11.40% |
11.45% |
11.71% |
11.80% |
11.52% |
11.80% |
| Tangible shareholders' equity to tangible assets* |
9.56% |
9.44% |
9.49% |
9.73% |
9.86% |
9.56% |
9.86% |
| Capital Adequacy: |
|||||||
| Common Equity Tier 1 capital |
12.04% |
11.90% |
12.16% |
12.23% |
12.13% |
12.04% |
12.13% |
| Tier 1 capital |
12.04% |
11.90% |
12.16% |
12.34% |
12.32% |
12.04% |
12.32% |
| Total capital |
13.03% |
12.91% |
13.21% |
13.38% |
13.37% |
13.03% |
13.37% |
| Tier 1 leverage capital |
10.02% |
9.93% |
9.95% |
10.32% |
10.53% |
10.02% |
10.53% |
| Estimated for current quarter |
|||||||
| Common Share Data: |
|||||||
| Basic earnings per share |
$ 0.43 |
$ 0.41 |
$ 0.41 |
$ 0.40 |
$ 0.40 |
$ 1.26 |
$ 1.01 |
| Diluted earnings per share |
0.43 |
0.41 |
0.41 |
0.40 |
0.40 |
1.25 |
1.00 |
| Operating earnings per share* |
0.43 |
0.41 |
0.40 |
0.40 |
0.40 |
1.25 |
1.10 |
| Operating earnings per share- excluding MSR* |
0.43 |
0.42 |
0.39 |
0.33 |
0.39 |
1.25 |
1.57 |
| Cash dividends per share |
0.14 |
0.13 |
0.13 |
0.13 |
0.13 |
0.39 |
0.33 |
| Book value per share |
18.83 |
18.59 |
18.44 |
18.40 |
18.33 |
18.83 |
18.33 |
| Tangible book value per share* |
15.29 |
15.06 |
14.95 |
14.95 |
14.98 |
15.29 |
14.98 |
| Market value per share (last) |
32.05 |
30.50 |
30.25 |
31.05 |
23.20 |
32.05 |
23.30 |
| Market value per share (high) |
32.70 |
31.85 |
32.40 |
31.75 |
25.09 |
32.70 |
25.09 |
| Market value per share (low) |
27.20 |
28.20 |
28.10 |
22.23 |
20.98 |
27.20 |
18.69 |
| Market value per share (avg) |
29.92 |
29.98 |
30.68 |
26.79 |
23.78 |
30.19 |
22.40 |
| Dividend payout ratio |
32.20% |
30.48% |
30.73% |
31.11% |
31.17% |
31.05% |
32.27% |
| Total shares outstanding |
90,329,896 |
91,022,729 |
92,344,409 |
93,696,687 |
94,074,740 |
90,329,896 |
94,074,740 |
| Average shares outstanding - basic |
90,911,702 |
91,366,309 |
93,642,848 |
93,740,626 |
94,303,916 |
91,973,620 |
94,378,050 |
| Average shares outstanding - diluted |
91,099,770 |
91,530,552 |
93,829,400 |
93,966,392 |
94,563,833 |
92,157,392 |
94,617,389 |
| Yield/Rate: |
|||||||
| (Taxable equivalent basis) |
|||||||
| Loans, loans held for sale, and leases net of unearned income |
4.33% |
4.27% |
4.20% |
4.18% |
4.20% |
4.27% |
4.20% |
| Available-for-sale securities: |
|||||||
| Taxable |
1.41% |
1.37% |
1.35% |
1.31% |
1.33% |
1.38% |
1.37% |
| Tax-exempt |
5.25% |
5.26% |
5.29% |
5.29% |
5.32% |
5.26% |
5.35% |
| Short-term investments |
1.02% |
0.88% |
0.76% |
0.41% |
0.52% |
0.84% |
0.42% |
| Total interest earning assets and revenue |
3.89% |
3.80% |
3.70% |
3.70% |
3.74% |
3.80% |
3.77% |
| Deposits |
0.26% |
0.25% |
0.23% |
0.23% |
0.22% |
0.25% |
0.22% |
| Demand - interest bearing |
0.28% |
0.25% |
0.22% |
0.20% |
0.19% |
0.25% |
0.18% |
| Savings |
0.12% |
0.12% |
0.12% |
0.12% |
0.12% |
0.12% |
0.12% |
| Other time |
0.84% |
0.81% |
0.79% |
0.79% |
0.78% |
0.81% |
0.75% |
| Short-term borrowings |
0.85% |
0.69% |
0.31% |
0.16% |
0.15% |
0.68% |
0.15% |
| Total interest bearing deposits & short-term borrowings |
0.41% |
0.37% |
0.32% |
0.31% |
0.30% |
0.37% |
0.29% |
| Junior subordinated debt |
N/A |
N/A |
3.29% |
3.53% |
3.27% |
3.29% |
3.23% |
| Long-term debt |
1.79% |
1.01% |
0.87% |
0.73% |
0.83% |
1.06% |
1.16% |
| Total interest bearing liabilities and expense |
0.44% |
0.40% |
0.35% |
0.34% |
0.34% |
0.39% |
0.32% |
| Interest bearing liabilities to interest earning assets |
69.55% |
69.68% |
70.24% |
69.43% |
69.33% |
69.82% |
69.52% |
| Net interest tax equivalent adjustment |
$ 2,237 |
$ 2,248 |
$ 2,261 |
$ 2,371 |
$ 2,462 |
$ 6,742 |
$ 7,516 |
| *Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 19 and 20. |
|||||||
| BancorpSouth, Inc. |
|||||
| Consolidated Balance Sheets |
|||||
| (Unaudited) |
|||||
| Sep-17 |
Jun-17 |
Mar-17 |
Dec-16 |
Sep-16 |
|
| (Dollars in thousands) |
|||||
| Assets |
|||||
| Cash and due from banks |
$ 167,871 |
$ 178,376 |
$ 147,684 |
$ 184,152 |
$ 172,782 |
| Interest bearing deposits with other banks |
52,316 |
49,680 |
253,738 |
38,813 |
151,944 |
| Available-for-sale securities, at fair value |
2,359,967 |
2,421,295 |
2,540,887 |
2,531,676 |
2,468,199 |
| Loans and leases |
11,073,306 |
11,037,808 |
10,822,568 |
10,835,512 |
10,685,166 |
| Less: Unearned income |
17,797 |
19,268 |
20,874 |
23,521 |
26,405 |
| Allowance for credit losses |
119,496 |
121,561 |
125,196 |
123,736 |
125,887 |
| Net loans and leases |
10,936,013 |
10,896,979 |
10,676,498 |
10,688,255 |
10,532,874 |
| Loans held for sale |
138,353 |
184,921 |
161,600 |
166,927 |
204,441 |
| Premises and equipment, net |
311,530 |
306,863 |
305,250 |
305,561 |
305,245 |
| Accrued interest receivable |
44,454 |
40,716 |
42,329 |
42,005 |
41,583 |
| Goodwill |
300,798 |
300,798 |
300,798 |
300,798 |
294,901 |
| Other identifiable intangibles |
18,860 |
19,854 |
20,865 |
21,894 |
19,908 |
| Bank owned life insurance |
259,361 |
260,228 |
258,518 |
258,648 |
257,015 |
| Other real estate owned |
5,956 |
7,704 |
8,458 |
7,810 |
11,391 |
| Other assets |
164,915 |
175,716 |
149,429 |
177,849 |
151,200 |
| Total Assets |
$ 14,760,394 |
$ 14,843,130 |
$ 14,866,054 |
$ 14,724,388 |
$ 14,611,483 |
| Liabilities |
|||||
| Deposits: |
|||||
| Demand: Noninterest bearing |
$ 3,414,397 |
$ 3,390,428 |
$ 3,401,348 |
$ 3,250,537 |
$ 3,308,361 |
| Interest bearing |
4,925,127 |
5,095,570 |
5,182,011 |
5,034,470 |
4,877,482 |
| Savings |
1,638,033 |
1,630,123 |
1,627,621 |
1,561,819 |
1,533,401 |
| Other time |
1,798,431 |
1,822,175 |
1,831,865 |
1,841,315 |
1,870,815 |
| Total deposits |
11,775,988 |
11,938,296 |
12,042,845 |
11,688,141 |
11,590,059 |
| Securities sold under agreement to repurchase |
421,044 |
399,815 |
375,832 |
454,002 |
468,969 |
| Federal funds purchased |
|||||
| and other short-term borrowing |
625,000 |
365,000 |
- |
92,000 |
- |
| Accrued interest payable |
4,826 |
4,259 |
4,109 |
3,975 |
4,107 |
| Junior subordinated debt securities |
- |
- |
- |
12,888 |
23,198 |
| Long-term debt |
30,000 |
230,000 |
530,000 |
530,000 |
563,495 |
| Other liabilities |
203,034 |
213,928 |
210,879 |
219,499 |
237,551 |
| Total Liabilities |
13,059,892 |
13,151,298 |
13,163,665 |
13,000,505 |
12,887,379 |
| Shareholders' Equity |
|||||
| Common stock |
225,825 |
227,557 |
230,861 |
234,242 |
235,187 |
| Capital surplus |
175,837 |
191,940 |
226,204 |
271,292 |
278,973 |
| Accumulated other comprehensive loss |
(50,203) |
(49,861) |
(50,360) |
(50,937) |
(33,549) |
| Retained earnings |
1,349,043 |
1,322,196 |
1,295,684 |
1,269,286 |
1,243,493 |
| Total Shareholders' Equity |
1,700,502 |
1,691,832 |
1,702,389 |
1,723,883 |
1,724,104 |
| Total Liabilities & Shareholders' Equity |
$ 14,760,394 |
$ 14,843,130 |
$ 14,866,054 |
$ 14,724,388 |
$ 14,611,483 |
| BancorpSouth, Inc. |
|||||
| Consolidated Average Balance Sheets |
|||||
| (Unaudited) |
|||||
| Sep-17 |
Jun-17 |
Mar-17 |
Dec-16 |
Sep-16 |
|
| (Dollars in thousands) |
|||||
| Assets |
|||||
| Cash and due from banks |
$ 153,797 |
$ 156,387 |
$ 162,696 |
$ 171,791 |
$ 157,233 |
| Interest bearing deposits with other banks |
83,109 |
117,414 |
258,502 |
165,805 |
311,545 |
| Available-for-sale securities, at fair value |
2,367,633 |
2,497,108 |
2,507,701 |
2,479,008 |
2,186,889 |
| Loans and leases |
11,032,159 |
10,903,524 |
10,843,069 |
10,763,314 |
10,629,522 |
| Less: Unearned income |
18,889 |
20,422 |
22,583 |
25,512 |
28,041 |
| Allowance for credit losses |
121,501 |
125,578 |
124,662 |
125,526 |
126,820 |
| Net loans and leases |
10,891,769 |
10,757,524 |
10,695,824 |
10,612,276 |
10,474,661 |
| Loans held for sale |
127,112 |
138,792 |
128,923 |
142,669 |
165,351 |
| Premises and equipment, net |
309,592 |
306,483 |
305,637 |
305,994 |
305,707 |
| Accrued interest receivable |
40,100 |
38,702 |
38,774 |
38,648 |
38,125 |
| Goodwill |
300,798 |
300,798 |
300,798 |
296,888 |
294,901 |
| Other identifiable intangibles |
19,222 |
20,218 |
21,236 |
20,303 |
20,248 |
| Bank owned life insurance |
261,100 |
259,182 |
257,669 |
257,397 |
255,967 |
| Other real estate owned |
6,985 |
7,860 |
8,154 |
9,084 |
13,664 |
| Other assets |
149,028 |
141,343 |
146,346 |
155,497 |
142,468 |
| Total Assets |
$ 14,710,245 |
$ 14,741,811 |
$ 14,832,260 |
$ 14,655,360 |
$ 14,366,759 |
| Liabilities |
|||||
| Deposits: |
|||||
| Demand: Noninterest bearing |
$ 3,369,468 |
$ 3,362,801 |
$ 3,272,876 |
$ 3,344,632 |
$ 3,221,539 |
| Interest bearing |
4,985,113 |
5,079,388 |
5,244,069 |
4,951,906 |
4,886,920 |
| Savings |
1,634,577 |
1,626,996 |
1,587,725 |
1,543,542 |
1,525,016 |
| Other time |
1,813,524 |
1,833,230 |
1,837,181 |
1,860,133 |
1,876,289 |
| Total deposits |
11,802,682 |
11,902,415 |
11,941,851 |
11,700,213 |
11,509,764 |
| Securities sold under agreement to repurchase |
444,999 |
412,825 |
414,272 |
475,669 |
454,826 |
| Federal funds purchased |
|||||
| and other short-term borrowing |
411,815 |
151,352 |
19,545 |
3,924 |
11 |
| Accrued interest payable |
4,507 |
4,028 |
3,867 |
4,031 |
3,950 |
| Junior subordinated debt securities |
- |
- |
1,146 |
21,181 |
23,198 |
| Long-term debt |
162,609 |
398,132 |
530,000 |
534,141 |
430,886 |
| Other liabilities |
187,734 |
193,006 |
189,648 |
191,330 |
224,621 |
| Total Liabilities |
13,014,346 |
13,061,758 |
13,100,329 |
12,930,489 |
12,647,256 |
| Shareholders' Equity |
|||||
| Common stock |
227,247 |
228,322 |
234,285 |
234,323 |
235,860 |
| Capital surplus |
189,545 |
199,115 |
265,685 |
271,900 |
283,437 |
| Accumulated other comprehensive loss |
(48,591) |
(49,185) |
(50,616) |
(40,454) |
(29,743) |
| Retained earnings |
1,327,698 |
1,301,801 |
1,282,577 |
1,259,102 |
1,229,949 |
| Total Shareholders' Equity |
1,695,899 |
1,680,053 |
1,731,931 |
1,724,871 |
1,719,503 |
| Total Liabilities & Shareholders' Equity |
$ 14,710,245 |
$ 14,741,811 |
$ 14,832,260 |
$ 14,655,360 |
$ 14,366,759 |
| BancorpSouth, Inc. |
|||||||||||||
| Consolidated Condensed Statements of Income |
|||||||||||||
| (Dollars in thousands, except per share data) |
|||||||||||||
| (Unaudited) |
|||||||||||||
| Quarter Ended |
Year to Date |
||||||||||||
| Sep-17 |
Jun-17 |
Mar-17 |
Dec-16 |
Sep-16 |
Sep-17 |
Sep-16 |
|||||||
| INTEREST REVENUE: |
|||||||||||||
| Loans and leases |
$ 119,599 |
$ 115,286 |
$ 111,498 |
$ 112,189 |
$ 111,605 |
$ 346,383 |
$ 328,488 |
||||||
| Deposits with other banks |
214 |
256 |
485 |
169 |
409 |
955 |
901 |
||||||
| Available-for-sale securities: |
|||||||||||||
| Taxable |
7,378 |
7,509 |
7,350 |
7,105 |
6,189 |
22,237 |
18,086 |
||||||
| Tax-exempt |
2,514 |
2,562 |
2,581 |
2,771 |
2,898 |
7,657 |
8,854 |
||||||
| Loans held for sale |
1,229 |
1,242 |
1,012 |
1,210 |
1,239 |
3,483 |
3,406 |
||||||
| Total interest revenue |
130,934 |
126,855 |
122,926 |
123,444 |
122,340 |
380,715 |
359,735 |
||||||
| INTEREST EXPENSE: |
|||||||||||||
| Interest bearing demand |
3,482 |
3,204 |
2,786 |
2,514 |
2,361 |
9,472 |
6,732 |
||||||
| Savings |
494 |
483 |
472 |
470 |
462 |
1,449 |
1,356 |
||||||
| Other time |
3,819 |
3,725 |
3,582 |
3,711 |
3,661 |
11,126 |
10,451 |
||||||
| Federal funds purchased and securities sold |
|||||||||||||
| under agreement to repurchase |
754 |
509 |
322 |
190 |
173 |
1,585 |
472 |
||||||
| Short-term and long-term debt |
1,824 |
1,456 |
1,142 |
985 |
902 |
4,422 |
2,097 |
||||||
| Junior subordinated debt |
- |
- |
9 |
187 |
190 |
9 |
560 |
||||||
| Other |
- |
- |
2 |
- |
1 |
2 |
2 |
||||||
| Total interest expense |
10,373 |
9,377 |
8,315 |
8,057 |
7,750 |
28,065 |
21,670 |
||||||
| Net interest revenue |
120,561 |
117,478 |
114,611 |
115,387 |
114,590 |
352,650 |
338,065 |
||||||
| Provision for credit losses |
500 |
1,000 |
1,000 |
1,000 |
- |
2,500 |
3,000 |
||||||
| Net interest revenue, after provision for |
|||||||||||||
| credit losses |
120,061 |
116,478 |
113,611 |
114,387 |
114,590 |
350,150 |
335,065 |
||||||
| NONINTEREST REVENUE: |
|||||||||||||
| Mortgage banking |
6,909 |
6,134 |
8,990 |
16,803 |
11,087 |
22,033 |
20,803 |
||||||
| Credit card, debit card and merchant fees |
9,346 |
9,565 |
8,903 |
9,262 |
9,292 |
27,814 |
27,748 |
||||||
| Deposit service charges |
10,388 |
9,706 |
9,689 |
9,956 |
11,313 |
29,783 |
33,345 |
||||||
| Security gains, net |
5 |
23 |
1,071 |
39 |
1 |
1,099 |
89 |
||||||
| Insurance commissions |
28,616 |
31,126 |
32,940 |
25,709 |
28,194 |
92,682 |
90,246 |
||||||
| Wealth management |
5,386 |
5,275 |
5,174 |
5,401 |
5,312 |
15,835 |
15,768 |
||||||
| Other |
5,310 |
6,301 |
4,102 |
4,805 |
4,474 |
15,713 |
14,927 |
||||||
| Total noninterest revenue |
65,960 |
68,130 |
70,869 |
71,975 |
69,673 |
204,959 |
202,926 |
||||||
| NONINTEREST EXPENSE: |
|||||||||||||
| Salaries and employee benefits |
81,415 |
81,597 |
81,386 |
80,850 |
80,884 |
244,398 |
243,238 |
||||||
| Occupancy, net of rental income |
10,343 |
10,455 |
10,302 |
10,294 |
10,412 |
31,100 |
30,794 |
||||||
| Equipment |
3,352 |
3,438 |
3,568 |
3,563 |
3,423 |
10,358 |
10,483 |
||||||
| Deposit insurance assessments |
2,499 |
2,261 |
2,484 |
1,818 |
3,227 |
7,244 |
8,097 |
||||||
| Regulatory settlement |
- |
- |
- |
- |
- |
- |
10,277 |
||||||
| Other |
29,294 |
29,802 |
29,369 |
33,994 |
30,371 |
88,465 |
94,501 |
||||||
| Total noninterest expense |
126,903 |
127,553 |
127,109 |
130,519 |
128,317 |
381,565 |
397,390 |
||||||
| Income before income taxes |
59,118 |
57,055 |
57,371 |
55,843 |
55,946 |
173,544 |
140,601 |
||||||
| Income tax expense |
19,590 |
19,166 |
19,278 |
18,173 |
18,129 |
58,034 |
45,543 |
||||||
| Net income |
$ 39,528 |
$ 37,889 |
$ 38,093 |
$ 37,670 |
$ 37,817 |
$ 115,510 |
$ 95,058 |
||||||
| Net income per share: Basic |
$ 0.43 |
$ 0.41 |
$ 0.41 |
$ 0.40 |
$ 0.40 |
$ 1.26 |
$ 1.01 |
||||||
| Diluted |
$ 0.43 |
$ 0.41 |
$ 0.41 |
$ 0.40 |
$ 0.40 |
$ 1.25 |
$ 1.00 |
||||||
| BancorpSouth, Inc. |
|||||||||
| Selected Loan Data |
|||||||||
| (Dollars in thousands) |
|||||||||
| (Unaudited) |
|||||||||
| Quarter Ended |
|||||||||
| Sep-17 |
Jun-17 |
Mar-17 |
Dec-16 |
Sep-16 |
|||||
| LOAN AND LEASE PORTFOLIO: |
|||||||||
| Commercial and industrial |
$ 1,506,352 |
$ 1,566,459 |
$ 1,536,527 |
$ 1,612,295 |
$ 1,616,152 |
||||
| Real estate |
|||||||||
| Consumer mortgages |
2,826,333 |
2,776,213 |
2,675,672 |
2,643,966 |
2,611,387 |
||||
| Home equity |
626,961 |
624,868 |
626,488 |
628,846 |
622,566 |
||||
| Agricultural |
247,211 |
245,646 |
240,534 |
245,377 |
242,171 |
||||
| Commercial and industrial-owner occupied |
1,835,430 |
1,795,321 |
1,801,613 |
1,764,265 |
1,668,477 |
||||
| Construction, acquisition and development |
1,175,979 |
1,156,901 |
1,136,827 |
1,157,248 |
1,121,386 |
||||
| Commercial real estate |
2,336,219 |
2,341,633 |
2,271,542 |
2,237,719 |
2,240,717 |
||||
| Credit cards |
104,613 |
104,169 |
103,813 |
109,656 |
107,447 |
||||
| All other |
396,411 |
407,330 |
408,678 |
412,619 |
428,458 |
||||
| Total loans |
$ 11,055,509 |
$ 11,018,540 |
$ 10,801,694 |
$ 10,811,991 |
$ 10,658,761 |
||||
| ALLOWANCE FOR CREDIT LOSSES: |
|||||||||
| Balance, beginning of period |
$ 121,561 |
$ 125,196 |
$ 123,736 |
$ 125,887 |
$ 126,935 |
||||
| Loans and leases charged-off: |
|||||||||
| Commercial and industrial |
(1,963) |
(3,773) |
(384) |
(2,483) |
(1,180) |
||||
| Real estate |
|||||||||
| Consumer mortgages |
(1,193) |
(522) |
(596) |
(905) |
(595) |
||||
| Home equity |
(439) |
(125) |
(459) |
(873) |
(237) |
||||
| Agricultural |
(54) |
(6) |
(44) |
- |
(89) |
||||
| Commercial and industrial-owner occupied |
(20) |
(1,460) |
(404) |
(20) |
(261) |
||||
| Construction, acquisition and development |
(29) |
(54) |
(30) |
(10) |
(5) |
||||
| Commercial real estate |
(49) |
(1) |
(19) |
- |
(14) |
||||
| Credit cards |
(745) |
(781) |
(838) |
(815) |
(696) |
||||
| All other |
(711) |
(591) |
(559) |
(580) |
(713) |
||||
| Total loans charged-off |
(5,203) |
(7,313) |
(3,333) |
(5,686) |
(3,790) |
||||
| Recoveries: |
|||||||||
| Commercial and industrial |
481 |
1,034 |
490 |
1,019 |
263 |
||||
| Real estate |
|||||||||
| Consumer mortgages |
642 |
339 |
625 |
413 |
327 |
||||
| Home equity |
378 |
110 |
356 |
71 |
109 |
||||
| Agricultural |
77 |
34 |
41 |
15 |
28 |
||||
| Commercial and industrial-owner occupied |
285 |
481 |
193 |
201 |
117 |
||||
| Construction, acquisition and development |
260 |
208 |
1,324 |
195 |
382 |
||||
| Commercial real estate |
151 |
75 |
69 |
176 |
1,043 |
||||
| Credit cards |
177 |
205 |
249 |
208 |
262 |
||||
| All other |
187 |
192 |
446 |
237 |
211 |
||||
| Total recoveries |
2,638 |
2,678 |
3,793 |
2,535 |
2,742 |
||||
| Net (charge-offs) recoveries |
(2,565) |
(4,635) |
460 |
(3,151) |
(1,048) |
||||
| Provision charged to operating expense |
500 |
1,000 |
1,000 |
1,000 |
- |
||||
| Balance, end of period |
$ 119,496 |
$ 121,561 |
$ 125,196 |
$ 123,736 |
$ 125,887 |
||||
| Average loans for period |
$ 11,013,270 |
$ 10,883,102 |
$ 10,820,486 |
$ 10,737,802 |
$ 10,601,481 |
||||
| Ratio: |
|||||||||
| Net charge-offs (recoveries) to average loans (annualized) |
0.09% |
0.17% |
(0.02%) |
0.12% |
0.04% |
||||
| BancorpSouth, Inc. |
|||||||||
| Selected Loan Data |
|||||||||
| (Dollars in thousands) |
|||||||||
| (Unaudited) |
|||||||||
| Quarter Ended |
|||||||||
| Sep-17 |
Jun-17 |
Mar-17 |
Dec-16 |
Sep-16 |
|||||
| NON-PERFORMING ASSETS |
|||||||||
| NON-PERFORMING LOANS AND LEASES: |
|||||||||
| Nonaccrual Loans and Leases |
|||||||||
| Commercial and industrial |
$ 8,776 |
$ 9,988 |
$ 13,959 |
$ 13,679 |
$ 11,659 |
||||
| Real estate |
|||||||||
| Consumer mortgages |
23,635 |
24,690 |
21,543 |
21,084 |
20,196 |
||||
| Home equity |
2,555 |
3,183 |
3,157 |
3,817 |
3,721 |
||||
| Agricultural |
5,919 |
6,172 |
5,180 |
1,546 |
1,194 |
||||
| Commercial and industrial-owner occupied |
7,558 |
10,215 |
15,135 |
10,791 |
11,983 |
||||
| Construction, acquisition and development |
1,771 |
2,223 |
1,466 |
7,022 |
6,939 |
||||
| Commercial real estate |
4,645 |
6,418 |
13,638 |
13,402 |
14,793 |
||||
| Credit cards |
126 |
122 |
87 |
161 |
121 |
||||
| All other |
811 |
574 |
274 |
310 |
119 |
||||
| Total nonaccrual loans and leases |
$ 55,796 |
$ 63,585 |
$ 74,439 |
$ 71,812 |
$ 70,725 |
||||
| Loans and Leases 90+ Days Past Due, Still Accruing: |
1,855 |
1,793 |
3,063 |
3,983 |
2,255 |
||||
| Restructured Loans and Leases, Still Accruing |
7,366 |
6,303 |
4,060 |
26,047 |
17,936 |
||||
| Total non-performing loans and leases |
65,017 |
71,681 |
81,562 |
101,842 |
90,916 |
||||
| OTHER REAL ESTATE OWNED: |
5,956 |
7,704 |
8,458 |
7,810 |
11,391 |
||||
| Total Non-performing Assets |
$ 70,973 |
$ 79,385 |
$ 90,020 |
$ 109,652 |
$ 102,307 |
||||
| Additions to Nonaccrual Loans and Leases During the Quarter |
$ 16,975 |
$ 17,020 |
$ 23,348 |
$ 16,007 |
$ 17,319 |
||||
| Loans and Leases 30-89 Days Past Due, Still Accruing: |
|||||||||
| Commercial and industrial |
$ 3,791 |
$ 3,304 |
$ 4,083 |
$ 3,449 |
$ 6,736 |
||||
| Real estate |
|||||||||
| Consumer mortgages |
18,603 |
12,395 |
10,149 |
14,490 |
15,443 |
||||
| Home equity |
2,042 |
2,590 |
1,720 |
3,072 |
3,854 |
||||
| Agricultural |
476 |
197 |
364 |
1,283 |
616 |
||||
| Commercial and industrial-owner occupied |
4,453 |
2,228 |
1,949 |
2,120 |
1,712 |
||||
| Construction, acquisition and development |
4,464 |
2,639 |
3,306 |
1,344 |
1,272 |
||||
| Commercial real estate |
1,206 |
1,183 |
2,631 |
653 |
15,221 |
||||
| Credit cards |
720 |
705 |
800 |
726 |
774 |
||||
| All other |
699 |
1,203 |
776 |
673 |
1,089 |
||||
| Total Loans and Leases 30-89 days past due, still accruing |
$ 36,454 |
$ 26,444 |
$ 25,778 |
$ 27,810 |
$ 46,717 |
||||
| Credit Quality Ratios: |
|||||||||
| Provision for credit losses to average loans and leases (annualized) |
0.02% |
0.04% |
0.04% |
0.04% |
0.00% |
||||
| Allowance for credit losses to net loans and leases |
1.08% |
1.10% |
1.16% |
1.14% |
1.18% |
||||
| Allowance for credit losses to non-performing loans and leases |
183.79% |
169.59% |
153.50% |
121.50% |
138.47% |
||||
| Allowance for credit losses to non-performing assets |
168.37% |
153.13% |
139.08% |
112.84% |
123.05% |
||||
| Non-performing loans and leases to net loans and leases |
0.59% |
0.65% |
0.76% |
0.94% |
0.85% |
||||
| Non-performing assets to net loans and leases |
0.64% |
0.72% |
0.83% |
1.01% |
0.96% |
||||
| BancorpSouth, Inc. |
|||||||||||||
| Selected Loan Data |
|||||||||||||
| (Dollars in thousands) |
|||||||||||||
| (Unaudited) |
|||||||||||||
| September 30, 2017 |
|||||||||||||
| Special |
|||||||||||||
| Pass |
Mention |
Substandard |
Doubtful |
Loss |
Impaired |
Total |
|||||||
| LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE: |
|||||||||||||
| Commercial and industrial |
$ 1,449,512 |
$ 762 |
$ 50,633 |
$ 290 |
$ 146 |
$ 5,009 |
$ 1,506,352 |
||||||
| Real estate |
|||||||||||||
| Consumer mortgages |
2,768,161 |
- |
55,836 |
272 |
- |
2,064 |
2,826,333 |
||||||
| Home equity |
617,463 |
- |
8,731 |
- |
- |
767 |
626,961 |
||||||
| Agricultural |
234,563 |
- |
7,372 |
- |
- |
5,276 |
247,211 |
||||||
| Commercial and industrial-owner occupied |
1,766,055 |
2,920 |
62,232 |
- |
- |
4,223 |
1,835,430 |
||||||
| Construction, acquisition and development |
1,159,359 |
3,718 |
12,902 |
- |
- |
- |
1,175,979 |
||||||
| Commercial real estate |
2,293,845 |
- |
39,805 |
177 |
- |
2,392 |
2,336,219 |
||||||
| Credit cards |
104,613 |
- |
- |
- |
- |
- |
104,613 |
||||||
| All other |
392,100 |
- |
4,211 |
100 |
- |
- |
396,411 |
||||||
| Total loans |
$ 10,785,671 |
$ 7,400 |
$ 241,722 |
$ 839 |
$ 146 |
$ 19,731 |
$ 11,055,509 |
||||||
| June 30, 2017 |
|||||||||||||
| Special |
|||||||||||||
| Pass |
Mention |
Substandard |
Doubtful |
Loss |
Impaired |
Total |
|||||||
| LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE: |
|||||||||||||
| Commercial and industrial |
$ 1,516,992 |
$ - |
$ 41,604 |
$ 301 |
$ - |
$ 7,562 |
$ 1,566,459 |
||||||
| Real estate |
|||||||||||||
| Consumer mortgages |
2,710,161 |
- |
63,352 |
276 |
- |
2,424 |
2,776,213 |
||||||
| Home equity |
613,216 |
- |
10,802 |
- |
- |
850 |
624,868 |
||||||
| Agricultural |
225,504 |
8,157 |
6,740 |
- |
- |
5,245 |
245,646 |
||||||
| Commercial and industrial-owner occupied |
1,734,306 |
3,161 |
50,644 |
- |
- |
7,210 |
1,795,321 |
||||||
| Construction, acquisition and development |
1,136,104 |
6,253 |
14,298 |
- |
- |
246 |
1,156,901 |
||||||
| Commercial real estate |
2,299,529 |
- |
37,214 |
169 |
- |
4,721 |
2,341,633 |
||||||
| Credit cards |
104,169 |
- |
- |
- |
- |
- |
104,169 |
||||||
| All other |
400,191 |
- |
6,900 |
239 |
- |
- |
407,330 |
||||||
| Total loans |
$ 10,740,172 |
$ 17,571 |
$ 231,554 |
$ 985 |
$ - |
$ 28,258 |
$ 11,018,540 |
||||||
| BancorpSouth, Inc. |
|||||||||||||||||
| Geographical Information |
|||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||
| (Unaudited) |
|||||||||||||||||
| September 30, 2017 |
|||||||||||||||||
| Alabama |
|||||||||||||||||
| and Florida |
|||||||||||||||||
| Panhandle |
Arkansas |
Louisiana |
Mississippi |
Missouri |
Tennessee |
Texas |
Other |
Total |
|||||||||
| LOAN AND LEASE PORTFOLIO: |
|||||||||||||||||
| Commercial and industrial |
$ 136,368 |
$ 195,461 |
$ 193,882 |
$ 551,391 |
$ 70,856 |
$ 108,389 |
$ 200,118 |
$ 49,887 |
$ 1,506,352 |
||||||||
| Real estate |
|||||||||||||||||
| Consumer mortgages |
379,388 |
327,113 |
233,715 |
879,524 |
92,807 |
316,209 |
543,855 |
53,722 |
2,826,333 |
||||||||
| Home equity |
96,418 |
47,361 |
70,916 |
230,493 |
21,531 |
139,521 |
19,348 |
1,373 |
626,961 |
||||||||
| Agricultural |
8,298 |
83,830 |
25,290 |
66,829 |
7,205 |
13,019 |
42,722 |
18 |
247,211 |
||||||||
| Commercial and industrial-owner occupied |
210,503 |
203,249 |
223,947 |
710,693 |
46,384 |
154,354 |
286,300 |
- |
1,835,430 |
||||||||
| Construction, acquisition and development |
126,581 |
75,400 |
57,445 |
355,559 |
20,391 |
164,014 |
376,589 |
- |
1,175,979 |
||||||||
| Commercial real estate |
300,226 |
357,712 |
236,589 |
574,667 |
209,097 |
212,296 |
445,632 |
- |
2,336,219 |
||||||||
| Credit cards |
- |
- |
- |
- |
- |
- |
- |
104,613 |
104,613 |
||||||||
| All other |
52,154 |
40,023 |
22,141 |
210,898 |
2,969 |
22,066 |
39,332 |
6,828 |
396,411 |
||||||||
| Total loans |
$ 1,309,936 |
$ 1,330,149 |
$ 1,063,925 |
$3,580,054 |
$ 471,240 |
$ 1,129,868 |
$ 1,953,896 |
$ 216,441 |
$ 11,055,509 |
||||||||
| NON-PERFORMING LOANS AND LEASES: |
|||||||||||||||||
| Commercial and industrial |
$ 652 |
$ 951 |
$ 405 |
$ 4,346 |
$ 689 |
$ 105 |
$ 2,104 |
$ 635 |
$ 9,887 |
||||||||
| Real estate |
|||||||||||||||||
| Consumer mortgages |
1,309 |
4,600 |
1,785 |
11,863 |
262 |
1,805 |
3,644 |
399 |
25,667 |
||||||||
| Home equity |
540 |
723 |
694 |
501 |
79 |
110 |
- |
2 |
2,649 |
||||||||
| Agricultural |
- |
237 |
204 |
5,512 |
- |
- |
15 |
- |
5,968 |
||||||||
| Commercial and industrial-owner occupied |
855 |
2,519 |
1,098 |
3,927 |
1,019 |
1,011 |
694 |
- |
11,123 |
||||||||
| Construction, acquisition and development |
42 |
719 |
267 |
784 |
- |
- |
99 |
- |
1,911 |
||||||||
| Commercial real estate |
984 |
1,004 |
328 |
2,932 |
- |
- |
299 |
- |
5,547 |
||||||||
| Credit cards |
- |
- |
- |
- |
- |
- |
- |
1,398 |
1,398 |
||||||||
| All other |
14 |
- |
7 |
645 |
- |
196 |
5 |
- |
867 |
||||||||
| Total loans |
$ 4,396 |
$ 10,753 |
$ 4,788 |
$ 30,510 |
$ 2,049 |
$ 3,227 |
$ 6,860 |
$ 2,434 |
$ 65,017 |
||||||||
| NON-PERFORMING LOANS AND LEASES |
|||||||||||||||||
| AS A PERCENTAGE OF OUTSTANDING: |
|||||||||||||||||
| Commercial and industrial |
0.48% |
0.49% |
0.21% |
0.79% |
0.97% |
0.10% |
1.05% |
1.27% |
0.66% |
||||||||
| Real estate |
|||||||||||||||||
| Consumer mortgages |
0.35% |
1.41% |
0.76% |
1.35% |
0.28% |
0.57% |
0.67% |
0.74% |
0.91% |
||||||||
| Home equity |
0.56% |
1.53% |
0.98% |
0.22% |
0.37% |
0.08% |
0.00% |
0.15% |
0.42% |
||||||||
| Agricultural |
0.00% |
0.28% |
0.81% |
8.25% |
0.00% |
0.00% |
0.04% |
0.00% |
2.41% |
||||||||
| Commercial and industrial-owner occupied |
0.41% |
1.24% |
0.49% |
0.55% |
2.20% |
0.65% |
0.24% |
N/A |
0.61% |
||||||||
| Construction, acquisition and development |
0.03% |
0.95% |
0.46% |
0.22% |
0.00% |
0.00% |
0.03% |
N/A |
0.16% |
||||||||
| Commercial real estate |
0.33% |
0.28% |
0.14% |
0.51% |
0.00% |
0.00% |
0.07% |
N/A |
0.24% |
||||||||
| Credit cards |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
1.34% |
1.34% |
||||||||
| All other |
0.03% |
0.00% |
0.03% |
0.31% |
0.00% |
0.89% |
0.01% |
0.00% |
0.22% |
||||||||
| Total loans |
0.34% |
0.81% |
0.45% |
0.85% |
0.43% |
0.29% |
0.35% |
1.12% |
0.59% |
||||||||
| BancorpSouth, Inc. |
|||||||||||||
| Noninterest Revenue and Expense |
|||||||||||||
| (Dollars in thousands) |
|||||||||||||
| (Unaudited) |
|||||||||||||
| Quarter Ended |
Year to Date |
||||||||||||
| Sep-17 |
Jun-17 |
Mar-17 |
Dec-16 |
Sep-16 |
Sep-17 |
Sep-16 |
|||||||
| NONINTEREST REVENUE: |
|||||||||||||
| Mortgage banking excl. MSR and MSR Hedge market value adj |
$ 6,955 |
$ 7,643 |
$ 8,056 |
$ 5,561 |
$ 9,274 |
$ 22,654 |
$ 31,036 |
||||||
| MSR and MSR Hedge market value adjustment |
(46) |
(1,509) |
934 |
11,242 |
1,813 |
(621) |
(10,233) |
||||||
| Credit card, debit card and merchant fees |
9,346 |
9,565 |
8,903 |
9,262 |
9,292 |
27,814 |
27,748 |
||||||
| Deposit service charges |
10,388 |
9,706 |
9,689 |
9,956 |
11,313 |
29,783 |
33,345 |
||||||
| Securities gains, net |
5 |
23 |
1,071 |
39 |
1 |
1,099 |
89 |
||||||
| Insurance commissions |
28,616 |
31,126 |
32,940 |
25,709 |
28,194 |
92,682 |
90,246 |
||||||
| Trust income |
3,803 |
3,679 |
3,561 |
3,874 |
3,641 |
11,043 |
10,564 |
||||||
| Annuity fees |
246 |
264 |
349 |
257 |
446 |
859 |
1,388 |
||||||
| Brokerage commissions and fees |
1,337 |
1,332 |
1,264 |
1,270 |
1,225 |
3,933 |
3,816 |
||||||
| Bank-owned life insurance |
2,700 |
1,710 |
1,669 |
2,104 |
1,775 |
6,079 |
5,481 |
||||||
| Other miscellaneous income |
2,610 |
4,591 |
2,433 |
2,701 |
2,699 |
9,634 |
9,446 |
||||||
| Total noninterest revenue |
$ 65,960 |
$ 68,130 |
$ 70,869 |
$ 71,975 |
$ 69,673 |
$ 204,959 |
$ 202,926 |
||||||
| NONINTEREST EXPENSE: |
|||||||||||||
| Salaries and employee benefits |
$ 81,415 |
$ 81,597 |
$ 81,386 |
$ 80,850 |
$ 80,884 |
$ 244,398 |
$ 243,238 |
||||||
| Occupancy, net of rental income |
10,343 |
10,455 |
10,302 |
10,294 |
10,412 |
31,100 |
30,794 |
||||||
| Equipment |
3,352 |
3,438 |
3,568 |
3,563 |
3,423 |
10,358 |
10,483 |
||||||
| Deposit insurance assessments |
2,499 |
2,261 |
2,484 |
1,818 |
3,227 |
7,244 |
8,097 |
||||||
| Regulatory settlement |
- |
- |
- |
- |
- |
- |
10,277 |
||||||
| Advertising |
1,185 |
1,037 |
663 |
2,443 |
925 |
2,885 |
2,601 |
||||||
| Foreclosed property expense |
447 |
960 |
1,050 |
1,005 |
859 |
2,457 |
3,349 |
||||||
| Telecommunications |
1,192 |
1,233 |
1,147 |
1,245 |
1,288 |
3,572 |
3,842 |
||||||
| Public relations |
675 |
654 |
720 |
716 |
718 |
2,049 |
1,978 |
||||||
| Data processing |
6,942 |
7,230 |
6,623 |
6,903 |
6,856 |
20,795 |
19,932 |
||||||
| Computer software |
3,074 |
2,913 |
2,981 |
3,013 |
2,976 |
8,968 |
8,368 |
||||||
| Amortization of intangibles |
994 |
1,010 |
1,030 |
963 |
923 |
3,034 |
2,672 |
||||||
| Legal |
1,016 |
1,330 |
1,229 |
1,190 |
1,064 |
3,575 |
7,353 |
||||||
| Merger expense |
- |
- |
- |
- |
- |
- |
2 |
||||||
| Postage and shipping |
1,050 |
1,080 |
1,175 |
1,075 |
1,059 |
3,305 |
3,161 |
||||||
| Other miscellaneous expense |
12,719 |
12,355 |
12,751 |
15,441 |
13,703 |
37,825 |
41,243 |
||||||
| Total noninterest expense |
$ 126,903 |
$ 127,553 |
$ 127,109 |
$ 130,519 |
$ 128,317 |
$ 381,565 |
$ 397,390 |
||||||
| INSURANCE COMMISSIONS: |
|||||||||||||
| Property and casualty commissions |
$ 21,086 |
$ 22,363 |
$ 19,755 |
$ 19,098 |
$ 20,927 |
63,204 |
$ 61,221 |
||||||
| Life and health commissions |
6,134 |
6,623 |
6,465 |
5,757 |
5,897 |
19,222 |
17,764 |
||||||
| Risk management income |
703 |
600 |
648 |
610 |
674 |
1,951 |
1,889 |
||||||
| Other |
693 |
1,540 |
6,072 |
244 |
696 |
8,305 |
9,372 |
||||||
| Total insurance commissions |
$ 28,616 |
$ 31,126 |
$ 32,940 |
$ 25,709 |
$ 28,194 |
$ 92,682 |
$ 90,246 |
||||||
| BancorpSouth, Inc. |
|||||||||
| Selected Additional Information |
|||||||||
| (Dollars in thousands) |
|||||||||
| (Unaudited) |
|||||||||
| Quarter Ended |
|||||||||
| Sep-17 |
Jun-17 |
Mar-17 |
Dec-16 |
Sep-16 |
|||||
| MORTGAGE SERVICING RIGHTS: |
|||||||||
| Fair value, beginning of period |
$ 65,491 |
$ 67,161 |
$ 65,263 |
$ 51,930 |
$ 48,108 |
||||
| Additions to mortgage servicing rights: |
|||||||||
| Originations of servicing assets |
3,393 |
2,772 |
2,866 |
4,022 |
4,349 |
||||
| Changes in fair value: |
|||||||||
| Due to payoffs/paydowns |
(2,502) |
(2,825) |
(1,876) |
(2,447) |
(2,338) |
||||
| Due to change in valuation inputs or |
|||||||||
| assumptions used in the valuation model |
36 |
(1,616) |
909 |
11,759 |
1,813 |
||||
| Other changes in fair value |
(1) |
(1) |
(1) |
(1) |
(2) |
||||
| Fair value, end of period |
$ 66,417 |
$ 65,491 |
$ 67,161 |
$ 65,263 |
$ 51,930 |
||||
| MORTGAGE BANKING REVENUE: |
|||||||||
| Production revenue: |
|||||||||
| Origination |
$ 4,809 |
$ 5,771 |
$ 5,117 |
$ 3,335 |
$ 6,973 |
||||
| Servicing |
4,648 |
4,697 |
4,815 |
4,673 |
4,639 |
||||
| Payoffs/Paydowns |
(2,502) |
(2,825) |
(1,876) |
(2,447) |
(2,338) |
||||
| Total production revenue |
6,955 |
7,643 |
8,056 |
5,561 |
9,274 |
||||
| Market value adjustment on MSR |
36 |
(1,616) |
909 |
11,759 |
1,813 |
||||
| Market value adjustment on MSR Hedge |
(82) |
107 |
25 |
(517) |
- |
||||
| Total mortgage lending revenue |
$ 6,909 |
$ 6,134 |
$ 8,990 |
$ 16,803 |
$ 11,087 |
||||
| Mortgage loans serviced |
$ 6,506,550 |
$ 6,431,273 |
$ 6,429,617 |
$ 6,384,649 |
$ 6,285,027 |
||||
| MSR/mtg loans serviced |
1.02% |
1.02% |
1.04% |
1.01% |
0.83% |
||||
| AVAILABLE-FOR-SALE SECURITIES, at fair value |
|||||||||
| U.S. Government agencies |
$ 1,687,186 |
$ 1,713,374 |
$ 1,818,180 |
$ 1,789,427 |
$ 1,691,866 |
||||
| Government agency issued residential |
|||||||||
| mortgage-back securities |
157,891 |
159,246 |
167,542 |
176,243 |
184,095 |
||||
| Government agency issued commercial |
|||||||||
| mortgage-back securities |
153,509 |
170,642 |
170,082 |
172,279 |
178,826 |
||||
| Obligations of states and political subdivisions |
328,314 |
345,130 |
352,324 |
360,005 |
384,996 |
||||
| Other |
33,067 |
32,903 |
32,759 |
33,722 |
28,416 |
||||
| Total available-for-sale securities |
$ 2,359,967 |
$ 2,421,295 |
$ 2,540,887 |
$ 2,531,676 |
$ 2,468,199 |
||||
| BancorpSouth, Inc. |
|||||||||||||||
| Reconciliation of Non-GAAP Measures and Other Non-GAAP 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, total operating expense, 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 |
Year to Date |
||||||||||||||
| 9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 |
9/30/2017 |
9/30/2016 |
|||||||||
| Net income |
$ 39,528 |
$ 37,889 |
$ 38,093 |
$ 37,670 |
$ 37,817 |
$ 115,510 |
$ 95,058 |
||||||||
| Plus: |
Merger expense, net of tax |
- |
- |
- |
- |
- |
- |
2 |
|||||||
| Regulatory related charges, net of tax |
- |
- |
- |
- |
- |
- |
9,412 |
||||||||
| Less: |
Security gains, net of tax |
3 |
14 |
664 |
25 |
- |
681 |
55 |
|||||||
| Net operating income |
$ 39,525 |
$ 37,875 |
$ 37,429 |
$ 37,645 |
$ 37,817 |
$ 114,829 |
$ 104,417 |
||||||||
| Less: |
MSR market value adjustment, net of tax |
(28) |
(936) |
579 |
6,970 |
1,124 |
(385) |
(6,344) |
|||||||
| Net operating income-excluding MSR |
$ 39,553 |
$ 38,811 |
$ 36,850 |
$ 30,675 |
$ 36,693 |
$ 115,214 |
$ 110,761 |
||||||||
| Reconciliation of Total Operating Expense to Total Noninterest Expense: |
|||||||||||||||
| Total noninterest expense |
$ 126,903 |
$ 127,553 |
$ 127,109 |
$ 130,519 |
$ 128,317 |
$ 381,565 |
$ 397,390 |
||||||||
| Less: |
Merger expense |
- |
- |
- |
- |
- |
- |
2 |
|||||||
| Regulatory related charges |
- |
- |
- |
- |
- |
- |
13,777 |
||||||||
| Total operating expense |
$ 126,903 |
$ 127,553 |
$ 127,109 |
$ 130,519 |
$ 128,317 |
$ 381,565 |
$ 383,611 |
||||||||
| BancorpSouth, Inc. |
|||||||||||||||
| Reconciliation of Non-GAAP Measures and Other Non-GAAP 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 |
Year to Date |
||||||||||||||
| 9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 |
9/30/017 |
9/30/2016 |
|||||||||
| Tangible assets |
|||||||||||||||
| Total assets |
$ 14,760,394 |
$ 14,843,130 |
$ 14,866,054 |
$ 14,724,388 |
$ 14,611,483 |
$ 14,760,394 |
$ 14,611,483 |
||||||||
| Less: |
Goodwill |
300,798 |
300,798 |
300,798 |
300,798 |
294,901 |
300,798 |
294,901 |
|||||||
| Other identifiable intangible assets |
18,860 |
19,854 |
20,865 |
21,894 |
19,908 |
18,860 |
19,908 |
||||||||
| Total tangible assets |
$ 14,440,736 |
$ 14,522,478 |
$ 14,544,391 |
$ 14,401,696 |
$ 14,296,674 |
$ 14,440,736 |
$ 14,296,674 |
||||||||
| Tangible shareholders' equity |
|||||||||||||||
| Total shareholders' equity |
$ 1,700,502 |
$ 1,691,832 |
$ 1,702,389 |
$ 1,723,883 |
$ 1,724,104 |
$ 1,700,502 |
$ 1,724,104 |
||||||||
| Less: |
Goodwill |
300,798 |
300,798 |
300,798 |
300,798 |
294,901 |
300,798 |
294,901 |
|||||||
| Other identifiable intangible assets |
18,860 |
19,854 |
20,865 |
21,894 |
19,908 |
18,860 |
19,908 |
||||||||
| Total tangible shareholders' equity |
$ 1,380,844 |
$ 1,371,180 |
$ 1,380,726 |
$ 1,401,191 |
$ 1,409,295 |
$ 1,380,844 |
$ 1,409,295 |
||||||||
| Total average assets |
$ 14,710,245 |
$ 14,741,811 |
$ 14,832,260 |
$ 14,655,360 |
$ 14,366,759 |
$ 14,760,991 |
$ 14,083,108 |
||||||||
| Total shares of common stock outstanding |
90,329,896 |
91,022,729 |
92,344,409 |
93,696,687 |
94,074,740 |
90,329,896 |
94,074,740 |
||||||||
| Average shares outstanding-diluted |
91,099,770 |
91,530,552 |
93,829,400 |
93,966,392 |
94,563,833 |
92,157,392 |
94,617,389 |
||||||||
| Tangible shareholders' equity to tangible assets (1) |
9.56% |
9.44% |
9.49% |
9.73% |
9.86% |
9.56% |
9.86% |
||||||||
| Return on tangible equity (2) |
11.36% |
11.08% |
11.19% |
10.70% |
10.68% |
11.18% |
9.01% |
||||||||
| Operating return on tangible equity-excluding MSR (3) |
11.36% |
11.35% |
10.82% |
8.71% |
10.36% |
11.16% |
10.50% |
||||||||
| Operating return on average assets-excluding MSR (4) |
1.07% |
1.06% |
1.01% |
0.83% |
1.02% |
1.04% |
1.05% |
||||||||
| Operating return on average shareholders' equity-excluding MSR (5) |
9.25% |
9.27% |
8.63% |
7.08% |
8.49% |
9.05% |
8.74% |
||||||||
| Tangible book value per share (6) |
$ 15.29 |
$ 15.06 |
$ 14.95 |
$ 14.95 |
$ 14.98 |
$ 15.29 |
$ 14.98 |
||||||||
| Operating earnings per share (7) |
$ 0.43 |
$ 0.41 |
$ 0.40 |
$ 0.40 |
$ 0.40 |
$ 1.25 |
$ 1.10 |
||||||||
| Operating earnings per share-excluding MSR (8) |
$ 0.43 |
$ 0.42 |
$ 0.39 |
$ 0.33 |
$ 0.39 |
$ 1.25 |
$ 1.17 |
||||||||
| (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 shares of common stock 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. |
|||||||||||||||
SOURCE BancorpSouth, Inc.
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article