Last10K.com

Bancorpsouth Inc (BXS) SEC Filing 8-K Material Event for the period ending Wednesday, July 19, 2017

Bancorpsouth Inc

CIK: 701853 Ticker: BXS

Exhibit 99.1

News Release

 

LOGO

 

Contact:     
John G. Copeland      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 2017 Financial Results

TUPELO, MS, July 19, 2017/PRNewswire — BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended June 30, 2017.

Highlights for the second quarter of 2017 included:

 

    Net income of $37.9 million, or $0.41 per diluted share.

 

    Generated net loan growth of $216.8 million, or 8.1 percent on an annualized basis.

 

    Net interest margin increased to 3.52 percent.

 

    Earnings were negatively impacted by a pre-tax mortgage servicing rights (“MSR”) valuation adjustment of $1.5 million.

 

    Net operating income – excluding MSR – of $38.8 million, or $0.42 per diluted share.

 

    Credit quality remained stable; recorded provision for credit losses of $1.0 million for the quarter.

 

    Total operating expense remained flat compared to the first quarter of 2017 and the second quarter of 2016 and operating efficiency ratio – excluding MSR – declined to 67.3 percent.

 

    Repurchased 1,381,634 shares of outstanding common stock at a weighted average price of $29.64 per share.

The Company reported net income of $37.9 million, or $0.41 per diluted share, for the second quarter of 2017 compared with net income of $34.7 million, or $0.37 per diluted share, for the second quarter of 2016 and net income of $38.1 million, or $0.41 per diluted share, for the first quarter of 2017.

- MORE -

BancorpSouth, Inc.

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


BXS Announces Second Quarter 2017 Financial Results

Page 2

July 19, 2017

 

The Company reported net operating income – excluding MSR – of $38.8 million, or $0.42 per diluted share, for the second quarter of 2017 compared to $37.2 million, or $0.39 per diluted share, for the second quarter of 2016 and $36.9 million, or $0.39 per diluted share, for the first 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, MSR valuation adjustments, restructuring charges, merger-related expenses, industry-related legal settlements, and other one-time charges.

“We are pleased our second quarter results reflect continued earnings growth and improvement in many of our operating metrics,” remarked Dan Rollins, Chairman and Chief Executive Officer. “While our second quarter deposit balances reflect an expected seasonal decline, our loan growth rebounded nicely after a slower first quarter. We reported net loan growth of $216.8 million, or 8.1 percent on an annualized basis, which resulted in loans and leases surpassing $11 billion for the first time in our Company’s history. Total operating expenses continue to remain flat, which resulted in a decline in the operating efficiency ratio – excluding MSR – to 67.3 percent, the lowest level we have achieved since 2010. Finally, we continue to be active in our share repurchase program, as we repurchased approximately 1.4 million shares during the quarter at a weighted average price of $29.64 per share.”

“Additionally, our net interest margin increased to 3.52 percent from 3.46 percent for the first quarter of this year. The margin benefited primarily from increases in yields on our loan portfolio. We expect recent rate increases to continue to provide some benefit to our loan yields as our variable rate loans reach repricing dates over time.”

Net Interest Revenue

Net interest revenue was $117.5 million for the second quarter of 2017, an increase of 4.6 percent from $112.3 million for the second quarter of 2016 and an increase of 2.5 percent from $114.6 million for the first quarter of 2017. The fully taxable equivalent net interest margin was 3.52 percent for the second quarter of 2017 compared to 3.56 percent for the second quarter of 2016 and 3.46 percent for the first quarter of 2017. Yields on loans and leases were 4.27 percent for the second quarter of 2017 compared with 4.20 percent for both the second quarter of 2016 and the first quarter of 2017, while yields on total interest earning assets were 3.80 percent for the second quarter of 2017 compared with 3.78 percent for the second quarter of 2016 and 3.70 percent for the first quarter of 2017. The average cost of deposits was 0.25 percent for the second quarter of 2017 compared to 0.21 percent for the second quarter of 2016 and 0.23 percent for the first quarter of 2017.

Asset, Deposit and Loan Activity

Total assets were $14.8 billion at June 30, 2017 compared with $14.1 billion at June 30, 2016. Loans and leases, net of unearned income, were $11.0 billion at June 30, 2017 compared with $10.6 billion at June 30, 2016.

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 3

July 19, 2017

 

Total deposits were $11.9 billion at June 30, 2017 compared with $11.4 billion at June 30, 2016. Time deposits decreased $57.3 million, or 3.1 percent, at June 30, 2017 compared to June 30, 2016. Over the same time period, interest bearing demand deposits increased $256.9 million, or 5.3 percent, while noninterest bearing demand deposits increased $257.0 million, or 8.2 percent, and savings deposits increased $117.4 million, or 7.8 percent.

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the second quarter reflect a provision for credit losses of $1.0 million, compared to a provision of $2.0 million for the second quarter of 2016 and a provision of $1.0 million for the first quarter of 2017. Net charge-offs for the second quarter of 2017 were $4.6 million, compared with net charge-offs of $1.6 million for the second quarter of 2016 and net recoveries of $0.5 million for the first quarter of 2017. The allowance for credit losses was $121.6 million, or 1.10 percent of net loans and leases, at June 30, 2017, compared with $126.9 million, or 1.20 percent of net loans and leases, at June 30, 2016 and $125.2 million, or 1.16 percent of net loans and leases, at March 31, 2017. The increase in net charge-offs and the decline in the allowance for credit losses for the second quarter of 2017 were primarily the result of charge-offs associated with loans for which a specific reserve was recorded in previous quarters.

Total non-performing assets (“NPAs”) were $79.4 million, or 0.72 percent of net loans and leases, at June 30, 2017 compared with $94.9 million, or 0.90 percent of net loans and leases, at June 30, 2016, and $90.0 million, or 0.83 percent of net loans and leases, at March 31, 2017. Other real estate owned was $7.7 million at June 30, 2017 compared with $14.7 million at June 30, 2016 and $8.5 million at March 31, 2017.

Noninterest Revenue

Noninterest revenue was $68.1 million for the second quarter of 2017, compared with $68.5 million for the second quarter of 2016 and $70.9 million for the first quarter of 2017. These results included a negative MSR valuation adjustment of $1.5 million for the second quarter of 2017 compared with a negative MSR valuation adjustment of $4.1 million for the second quarter of 2016 and a positive MSR valuation adjustment of $0.9 million for the first 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 $7.6 million for the second quarter of 2017, compared with $12.0 million for the second quarter of 2016 and $8.1 million for the first quarter of 2017. Mortgage origination volume for the second quarter of 2017 was $385.9 million, compared with $462.6 million for the second quarter of 2016 and $287.8 million for the first quarter of 2017.

Credit and debit card fee revenue was $9.6 million for the second quarter of 2017, compared with $9.5 million for the second quarter of 2016 and $8.9 million for the first quarter of 2017. Deposit service charge revenue was $9.7 million for the second quarter of 2017, compared with $11.0 million for the second quarter of 2016 and $9.7 million for the first quarter of 2017. Insurance commission revenue was $31.1 million for the second quarter of 2017, compared with $28.8 million for the second quarter of 2016 and $32.9 million for the first quarter of 2017. Wealth management revenue was $5.3 million for the second quarter of 2017, compared with $5.3 million for the second quarter of 2016 and $5.2 million for the first quarter of 2017.

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 4

July 19, 2017

 

Noninterest Expense

Noninterest expense for the second quarter of 2017 was $127.6 million, compared with $127.6 million for the second quarter of 2016 and $127.1 million for the first quarter of 2017. Salaries and employee benefits expense was $81.6 million for the second quarter of 2017 compared to $80.7 million for the second quarter of 2016 and $81.4 million for the first quarter of 2017. Occupancy expense was $10.5 million for the second quarter of 2017, compared with $10.1 million for the second quarter of 2016 and $10.3 million for the first quarter of 2017. Other noninterest expense was $29.8 million for the second quarter of 2017, compared to $30.9 million for the second quarter of 2016 and $29.4 million for the first 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 11.40 percent at June 30, 2017, compared with 12.12 percent at June 30, 2016 and 11.45 percent at March 31, 2017. The ratio of tangible shareholders’ equity to tangible assets was 9.44 percent at June 30, 2017, compared with 10.11 percent at June 30, 2016 and 9.49 percent at March 31, 2017.

During the second quarter of 2017, the Company repurchased 1,381,634 shares of its outstanding common stock at a weighted average price of $29.64 per share. During the first quarter of 2017, the Company repurchased 1,613,691 shares at a weighted average price of $30.62 per share. As of June 30, 2017, the Company had 3,016,615 remaining shares available for repurchase under its current share repurchase authorization, which expires on December 29, 2017.

Estimated regulatory capital ratios at June 30, 2017 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 11.90 percent at June 30, 2017 and total risk-based capital of 12.91 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for “well capitalized” classification.

Transactions

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.

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 agreed to be merged with and into the Company. Central Community Corporation is the parent company of First State Bank Central Texas (“First State Bank”), which

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 5

July 19, 2017

 

is headquartered in Austin, Texas. First State Bank operates 31 full-service banking offices in central Texas. As of June 30, 2017, Central Community Corporation, on a consolidated basis, reported total assets of $1.4 billion, total loans of $705.8 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. The Company and Central Community Corporation entered into an extension of the merger effective on October 13, 2016, extending the merger agreement through December 31, 2017 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. The merger agreement remains in effect until terminated by the Board of Directors of the Company or Central Community Corporation. 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. 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 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. agreed to 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, 2017, OIB, on a consolidated basis, reported total assets of $734.6 million, total loans of $496.1 million and total deposits of $614.2 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 Ouachita Bancshares Corp. shareholders on April 8, 2014. The Company and Ouachita Bancshares Corp. entered into an extension of the merger effective on October 13, 2016, extending the merger agreement through December 31, 2017 to allow for additional time to obtain the necessary regulatory approvals and to satisfy all closing conditions. The merger agreement remains in effect until terminated by the Board of Directors of the Company or Ouachita Bancshares Corp. 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. 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 Central Community Corporation and the status of the merger with Ouachita Bancshares Corp. in our periodic and current reports, please refer to the Form 8-K that was previously filed with the SEC on October 14, 2016.

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 6

July 19, 2017

 

Summary

Rollins concluded, “We continue to see steady improvement quarter after quarter as we grow our Company while keeping expenses flat. We are pleased with the success of several of our business development teams during the second quarter. We reported meaningful net loan growth, our mortgage team originated over $385 million in mortgage loans during the quarter, and our insurance team reported growth in property and casualty commissions and life and health commissions despite continued industry headwinds. While our story has seemed repetitive for some time now, I’m excited about our opportunity to continue to improve performance and enhance shareholder value going forward.”

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 second quarter 2017 results on July 20, 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, Inc.

BancorpSouth, Inc. (NYSE: BXS) is a financial holding company headquartered in Tupelo, Mississippi, with $14.8 billion in assets. BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., 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 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

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 7

July 19, 2017

 

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 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.

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 8

July 19, 2017

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

 

     Quarter Ended
6/30/2017
    Quarter Ended
3/31/2017
    Quarter Ended
12/31/2016
    Quarter Ended
9/30/2016
    Quarter Ended
6/30/2016
    Year to Date
6/30/2017
    Year to Date
6/30/2016
 

Earnings Summary:

              

Interest revenue

   $ 126,855     $ 122,926     $ 123,444     $ 122,340     $ 119,423     $ 249,781     $ 237,395  

Interest expense

     9,377       8,315       8,057       7,750       7,107       17,692       13,920  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest revenue

     117,478       114,611       115,387       114,590       112,316       232,089       223,475  

Provision for credit losses

     1,000       1,000       1,000       —         2,000       2,000       3,000  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest revenue, after provision for credit losses

     116,478       113,611       114,387       114,590       110,316       230,089       220,475  

Noninterest revenue

     68,130       70,869       71,975       69,673       68,526       138,999       133,253  

Noninterest expense

     127,553       127,109       130,519       128,317       127,561       254,662       269,073  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     57,055       57,371       55,843       55,946       51,281       114,426       84,655  

Income tax expense

     19,166       19,278       18,173       18,129       16,589       38,444       27,414  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 37,889     $ 38,093     $ 37,670     $ 37,817     $ 34,692     $ 75,982     $ 57,241  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance Sheet - Period End Balances

              

Total assets

   $ 14,843,130     $ 14,866,054     $ 14,724,388     $ 14,611,483     $ 14,137,160     $ 14,843,130     $ 14,137,160  

Total earning assets

     13,674,436       13,757,920       13,549,407       13,483,345       12,977,030       13,674,436       12,977,030  

Total securities

     2,421,295       2,540,887       2,531,676       2,468,199       2,103,883       2,421,295       2,103,883  

Loans and leases, net of unearned income

     11,018,540       10,801,694       10,811,991       10,658,761       10,575,978       11,018,540       10,575,978  

Allowance for credit losses

     121,561       125,196       123,736       125,887       126,935       121,561       126,935  

Total deposits

     11,938,296       12,042,845       11,688,141       11,590,059       11,364,367       11,938,296       11,364,367  

Long-term debt

     230,000       530,000       530,000       563,495       365,588       230,000       365,588  

Total shareholders’ equity

     1,691,832       1,702,389       1,723,883       1,724,104       1,713,043       1,691,832       1,713,043  

Balance Sheet - Average Balances

              

Total assets

   $ 14,741,811     $ 14,832,260     $ 14,655,360     $ 14,366,759     $ 14,027,786     $ 14,786,784     $ 13,939,723  

Total earning assets

     13,636,415       13,715,612       13,525,284       13,265,266       12,963,056       13,675,795       12,896,528  

Total securities

     2,497,108       2,507,701       2,479,008       2,186,889       2,069,058       2,502,375       2,053,399  

Loans and leases, net of unearned income

     10,883,102       10,820,486       10,737,802       10,601,481       10,513,732       10,851,967       10,443,328  

Total deposits

     11,902,415       11,941,851       11,700,213       11,509,764       11,437,422       11,922,024       11,434,451  

Long-term debt

     398,132       530,000       534,141       430,886       219,434       463,702       143,592  

Total shareholders’ equity

     1,680,053       1,731,931       1,724,871       1,719,503       1,690,906       1,705,849       1,679,686  

Nonperforming Assets:

              

Non-accrual loans and leases

   $ 63,585     $ 74,439     $ 71,812     $ 70,725     $ 68,638     $ 63,585     $ 68,638  

Loans and leases 90+ days past due, still accruing

     1,793       3,063       3,983       2,255       1,875       1,793       1,875  

Restructured loans and leases, still accruing

     6,303       4,060       26,047       17,936       9,687       6,303       9,687  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-performing loans (NPLs)

     71,681       81,562       101,842       90,916       80,200       71,681       80,200  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other real estate owned

     7,704       8,458       7,810       11,391       14,658       7,704       14,658  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-performing assets (NPAs)

   $ 79,385     $ 90,020     $ 109,652     $ 102,307     $ 94,858     $ 79,385     $ 94,858  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Financial Ratios and Other Data:

              

Return on average assets

     1.03     1.04     1.02     1.05     0.99     1.04     0.83

Operating return on average assets-excluding MSR*

     1.06     1.01     0.83     1.02     1.07     1.03     1.07

Return on average shareholders’ equity

     9.05     8.92     8.69     8.75     8.25     8.98     6.85

Operating return on average shareholders’ equity-excluding MSR*

     9.27     8.63     7.08     8.49     8.84     8.94     8.87

Return on tangible equity*

     11.08     11.19     10.70     10.68     9.99     11.17     8.24

Operating return on tangible equity-excluding MSR*

     11.35     10.82     8.71     10.36     10.70     11.13     10.66

Noninterest income to average assets

     1.85     1.94     1.95     1.93     1.96     1.90     1.92

Noninterest expense to average assets

     3.47     3.48     3.54     3.55     3.66     3.47     3.88

Net interest margin-fully taxable equivalent

     3.52     3.46     3.46     3.51     3.56     3.49     3.55

Net interest rate spread

     3.40     3.35     3.36     3.41     3.47     3.38     3.46

Efficiency ratio (tax equivalent)*

     67.90     67.71     68.79     68.72     69.58     67.80     74.37

Operating efficiency ratio-excluding MSR (tax equivalent)*

     67.33     68.43     73.14     69.39     68.01     67.87     68.31

Loan/deposit ratio

     92.30     89.69     92.50     91.96     93.06     92.30     93.06

Price to earnings multiple (avg)

     18.83       19.15       22.02       18.86       19.07       18.83       19.07  

Market value to book value

     164.07     164.09     168.76     126.59     125.23     164.07     125.23

Market value to book value (avg)

     161.24     166.39     145.61     129.73     124.62     163.14     120.37

Market value to tangible book value

     202.52     202.32     207.63     154.87     153.53     202.52     153.53

Market value to tangible book value (avg)

     199.07     205.16     179.14     158.71     152.78     201.29     147.57

Headcount FTE

     3,989       3,973       3,998       3,981       4,028       3,989       4,028  

 

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

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 9

July 19, 2017

 

BancorpSouth, Inc.

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)

 

     Quarter Ended
6/30/2017
    Quarter Ended
3/31/2017
    Quarter Ended
12/31/2016
    Quarter Ended
9/30/2016
    Quarter Ended
6/30/2016
    Year to Date
6/30/2017
    Year to Date
6/30/2016
 

Credit Quality Ratios:

              

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

     0.17     (0.02 %)      0.12     0.04     0.06     0.08     0.05

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

     0.04     0.04     0.04     0.00     0.08     0.04     0.06

Allowance for credit losses to net loans and leases

     1.10     1.16     1.14     1.18     1.20     1.10     1.20

Allowance for credit losses to non-performing loans and leases

     169.59     153.50     121.50     138.47     158.27     169.59     158.27

Allowance for credit losses to non-performing assets

     153.13     139.08     112.84     123.05     133.82     153.13     133.82

Non-performing loans and leases to net loans and leases

     0.65     0.76     0.94     0.85     0.76     0.65     0.76

Non-performing assets to net loans and leases

     0.72     0.83     1.01     0.96     0.90     0.72     0.90

Equity Ratios:

              

Total shareholders’ equity to total assets

     11.40     11.45     11.71     11.80     12.12     11.40     12.12

Tangible shareholders’ equity to tangible assets*

     9.44     9.49     9.73     9.86     10.11     9.44     10.11

Capital Adequacy:

              

Common Equity Tier 1 capital

     11.90     12.16     12.23     12.13     12.17     11.90     12.17

Tier 1 capital

     11.90     12.16     12.34     12.32     12.37     11.90     12.37

Total capital

     12.91     13.21     13.38     13.37     13.45     12.91     13.45

Tier 1 leverage capital

     9.93     9.95     10.32     10.53     10.66     9.93     10.66

Estimated for current quarter

              

Common Share Data:

              

Basic earnings per share

   $ 0.41     $ 0.41     $ 0.40     $ 0.40     $ 0.37     $ 0.82     $ 0.61  

Diluted earnings per share

     0.41       0.41       0.40       0.40       0.37       0.82       0.60  

Operating earnings per share*

     0.41       0.40       0.40       0.40       0.37       0.81       0.70  

Operating earnings per share- excluding MSR*

     0.42       0.39       0.33       0.39       0.39       0.82       0.78  

Cash dividends per share

     0.13       0.13       0.13       0.13       0.10       0.25       0.20  

Book value per share

     18.59       18.44       18.40       18.33       18.12       18.59       18.12  

Tangible book value per share*

     15.06       14.95       14.95       14.98       14.78       15.06       14.78  

Market value per share (last)

     30.50       30.25       31.05       23.20       22.69       30.50       22.69  

Market value per share (high)

     31.85       32.40       31.75       25.09       24.18       32.40       24.18  

Market value per share (low)

     28.20       28.10       22.23       20.98       20.19       28.10       18.69  

Market value per share (avg)

     29.98       30.68       26.79       23.78       22.58       30.32       21.81  

Dividend payout ratio

     30.48     30.73     31.11     31.17     22.58     30.44     32.99

Total shares outstanding

     91,022,729       92,344,409       93,696,687       94,074,740       94,546,091       91,022,729       94,546,091  

Average shares outstanding - basic

     91,366,309       93,642,848       93,740,626       94,303,916       94,461,025       92,504,580       94,415,118  

Average shares outstanding - diluted

     91,530,552       93,829,400       93,966,392       94,563,833       94,694,795       92,686,203       94,644,168  

Yield/Rate:

              

(Taxable equivalent basis)

              

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

     4.27     4.20     4.18     4.20     4.20     4.24     4.19

Available-for-sale securities:

              

Taxable

     1.37     1.35     1.31     1.33     1.40     1.36     1.40

Tax-exempt

     5.26     5.29     5.29     5.32     5.36     5.28     5.34

Short-term investments

     0.88     0.76     0.41     0.52     0.39     0.80     0.36

Total interest earning assets and revenue

     3.80     3.70     3.70     3.74     3.78     3.75     3.77

Deposits

     0.25     0.23     0.23     0.22     0.21     0.24     0.23

Demand - interest bearing

     0.25     0.22     0.20     0.19     0.18     0.23     0.17

Savings

     0.12     0.12     0.12     0.12     0.12     0.12     0.12

Other time

     0.81     0.79     0.79     0.78     0.75     0.80     0.74

Short-term borrowings

     0.69     0.31     0.16     0.15     0.15     0.53     0.14

Total interest bearing deposits & short-term borrowings

     0.37     0.32     0.31     0.30     0.29     0.34     0.28

Junior subordinated debt

     N/A       3.29     3.53     3.27     3.23     3.29     3.20

Long-term debt

     1.01     0.87     0.73     0.83     1.21     0.93     1.64

Total interest bearing liabilities and expense

     0.40     0.35     0.34     0.34     0.32     0.37     0.31

Interest bearing liabilities to interest earning assets

     69.68     70.24     69.43     69.33     69.47     69.96     69.61

Net interest tax equivalent adjustment

   $ 2,248     $ 2,261     $ 2,371     $ 2,462     $ 2,493     $ 4,509     $ 5,051  

 

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

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 10

July 19, 2017

 

BancorpSouth, Inc.

Consolidated Balance Sheets

(Unaudited)

 

     Jun-17     Mar-17     Dec-16     Sep-16     Jun-16  
     (Dollars in thousands)  

Assets

          

Cash and due from banks

   $ 178,376     $ 147,684     $ 184,152     $ 172,782     $ 186,381  

Interest bearing deposits with other banks

     49,680       253,738       38,813       151,944       86,472  

Available-for-sale securities, at fair value

     2,421,295       2,540,887       2,531,676       2,468,199       2,103,883  

Loans and leases

     11,037,808       10,822,568       10,835,512       10,685,166       10,604,547  

Less: Unearned income

     19,268       20,874       23,521       26,405       28,569  

  Allowance for credit losses

     121,561       125,196       123,736       125,887       126,935  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loans and leases

     10,896,979       10,676,498       10,688,255       10,532,874       10,449,043  

Loans held for sale

     184,921       161,600       166,927       204,441       210,698  

Premises and equipment, net

     306,863       305,250       305,561       305,245       305,694  

Accrued interest receivable

     40,716       42,329       42,005       41,583       39,645  

Goodwill

     300,798       300,798       300,798       294,901       294,901  

Other identifiable intangibles

     19,854       20,865       21,894       19,908       20,831  

Bank owned life insurance

     260,228       258,518       258,648       257,015       255,240  

Other real estate owned

     7,704       8,458       7,810       11,391       14,658  

Other assets

     175,716       149,429       177,849       151,200       169,714  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

   $ 14,843,130     $ 14,866,054     $ 14,724,388     $ 14,611,483     $ 14,137,160  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

          

Deposits:

          

Demand: Noninterest bearing

   $ 3,390,428     $ 3,401,348     $ 3,250,537     $ 3,308,361     $ 3,133,460  

Interest bearing

     5,095,570       5,182,011       5,034,470       4,877,482       4,838,704  

Savings

     1,630,123       1,627,621       1,561,819       1,533,401       1,512,694  

Other time

     1,822,175       1,831,865       1,841,315       1,870,815       1,879,509  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

     11,938,296       12,042,845       11,688,141       11,590,059       11,364,367  

Securities sold under agreement to repurchase

     399,815       375,832       454,002       468,969       415,949  

Federal funds purchased and other short-term borrowing

     365,000       —         92,000       —         —    

Accrued interest payable

     4,259       4,109       3,975       4,107       3,727  

Junior subordinated debt securities

     —         —         12,888       23,198       23,198  

Long-term debt

     230,000       530,000       530,000       563,495       365,588  

Other liabilities

     213,928       210,879       219,499       237,551       251,288  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities

     13,151,298       13,163,665       13,000,505       12,887,379       12,424,117  

Shareholders’ Equity

          

Common stock

     227,557       230,861       234,242       235,187       236,365  

Capital surplus

     191,940       226,204       271,292       278,973       286,994  

Accumulated other comprehensive loss

     (49,861     (50,360     (50,937     (33,549     (27,587

Retained earnings

     1,322,196       1,295,684       1,269,286       1,243,493       1,217,271  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Shareholders’ Equity

     1,691,832       1,702,389       1,723,883       1,724,104       1,713,043  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities & Shareholders’ Equity

   $ 14,843,130     $ 14,866,054     $ 14,724,388     $ 14,611,483     $ 14,137,160  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 11

July 19, 2017

 

BancorpSouth, Inc.

Consolidated Average Balance Sheets

(Unaudited)

 

     Jun-17     Mar-17     Dec-16     Sep-16     Jun-16  
     (Dollars in thousands)  

Assets

          

Cash and due from banks

   $ 156,387     $ 162,696     $ 171,791     $ 157,233     $ 117,193  

Interest bearing deposits with other banks

     117,414       258,502       165,805       311,545       237,635  

Available-for-sale securities, at fair value

     2,497,108       2,507,701       2,479,008       2,186,889       2,069,058  

Loans and leases

     10,903,524       10,843,069       10,763,314       10,629,522       10,543,795  

Less: Unearned income

     20,422       22,583       25,512       28,041       30,063  

  Allowance for credit losses

     125,578       124,662       125,526       126,820       126,103  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loans and leases

     10,757,524       10,695,824       10,612,276       10,474,661       10,387,629  

Loans held for sale

     138,792       128,923       142,669       165,351       142,632  

Premises and equipment, net

     306,483       305,637       305,994       305,707       307,600  

Accrued interest receivable

     38,702       38,774       38,648       38,125       36,887  

Goodwill

     300,798       300,798       296,888       294,901       292,620  

Other identifiable intangibles

     20,218       21,236       20,303       20,248       19,796  

Bank owned life insurance

     259,182       257,669       257,397       255,967       254,191  

Other real estate owned

     7,860       8,154       9,084       13,664       15,666  

Other assets

     141,343       146,346       155,497       142,468       146,879  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

   $ 14,741,811     $ 14,832,260     $ 14,655,360     $ 14,366,759     $ 14,027,786  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities

          

Deposits:

          

Demand: Noninterest bearing

   $ 3,362,801     $ 3,272,876     $ 3,344,632     $ 3,221,539     $ 3,122,153  

Interest bearing

     5,079,388       5,244,069       4,951,906       4,886,920       4,957,827  

Savings

     1,626,996       1,587,725       1,543,542       1,525,016       1,510,250  

Other time

     1,833,230       1,837,181       1,860,133       1,876,289       1,847,192  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

     11,902,415       11,941,851       11,700,213       11,509,764       11,437,422  

Securities sold under agreement to repurchase

     412,825       414,272       475,669       454,826       443,340  

Federal funds purchased and other short-term borrowing

     151,352       19,545       3,924       11       4,275  

Accrued interest payable

     4,028       3,867       4,031       3,950       3,509  

Junior subordinated debt securities

     —         1,146       21,181       23,198       23,198  

Long-term debt

     398,132       530,000       534,141       430,886       219,434  

Other liabilities

     193,006       189,648       191,330       224,621       205,702  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities

     13,061,758       13,100,329       12,930,489       12,647,256       12,336,880  

Shareholders’ Equity

          

Common stock

     228,322       234,285       234,323       235,860       236,176  

Capital surplus

     199,115       265,685       271,900       283,437       284,818  

Accumulated other comprehensive loss

     (49,185     (50,616     (40,454     (29,743     (32,820

Retained earnings

     1,301,801       1,282,577       1,259,102       1,229,949       1,202,732  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Shareholders’ Equity

     1,680,053       1,731,931       1,724,871       1,719,503       1,690,906  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities & Shareholders’ Equity

   $ 14,741,811     $ 14,832,260     $ 14,655,360     $ 14,366,759     $ 14,027,786  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 12

July 19, 2017

 

BancorpSouth, Inc.

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)

 

     Quarter Ended      Year to Date  
     Jun-17      Mar-17      Dec-16      Sep-16      Jun-16      Jun-17      Jun-16  

INTEREST REVENUE:

                    

Loans and leases

   $ 115,286      $ 111,498      $ 112,189      $ 111,605      $ 109,078      $ 226,784      $ 216,883  

Deposits with other banks

     256        485        169        409        229        741        492  

Available-for-sale securities:

                    

Taxable

     7,509        7,350        7,105        6,189        6,009        14,859        11,897  

Tax-exempt

     2,562        2,581        2,771        2,898        2,924        5,143        5,956  

Loans held for sale

     1,242        1,012        1,210        1,239        1,183        2,254        2,167  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest revenue

     126,855        122,926        123,444        122,340        119,423        249,781        237,395  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

INTEREST EXPENSE:

                    

Interest bearing demand

     3,204        2,786        2,514        2,361        2,208        5,990        4,371  

Savings

     483        472        470        462        451        955        894  

Other time

     3,725        3,582        3,711        3,661        3,436        7,307        6,790  

Federal funds purchased and securities sold under agreement to repurchase

     509        322        190        173        159        831        299  

Short-term and long-term debt

     1,456        1,142        985        902        665        2,598        1,195  

Junior subordinated debt

     —          9        187        190        187        9        370  

Other

     —          2        —          1        1        2        1  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total interest expense

     9,377        8,315        8,057        7,750        7,107        17,692        13,920  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net interest revenue

     117,478        114,611        115,387        114,590        112,316        232,089        223,475  

Provision for credit losses

     1,000        1,000        1,000        —          2,000        2,000        3,000  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net interest revenue, after provision for credit losses

     116,478        113,611        114,387        114,590        110,316        230,089        220,475  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NONINTEREST REVENUE:

                    

Mortgage banking

     6,134        8,990        16,803        11,087        7,886        15,124        9,716  

Credit card, debit card and merchant fees

     9,565        8,903        9,262        9,292        9,495        18,468        18,456  

Deposit service charges

     9,706        9,689        9,956        11,313        11,018        19,395        22,032  

Security gains, net

     23        1,071        39        1        86        1,094        88  

Insurance commissions

     31,126        32,940        25,709        28,194        28,803        64,066        62,052  

Wealth management

     5,275        5,174        5,401        5,312        5,347        10,449        10,456  

Other

     6,301        4,102        4,805        4,474        5,891        10,403        10,453  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest revenue

     68,130        70,869        71,975        69,673        68,526        138,999        133,253  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NONINTEREST EXPENSE:

                    

Salaries and employee benefits

     81,597        81,386        80,850        80,884        80,675        162,983        162,354  

Occupancy, net of rental income

     10,455        10,302        10,294        10,412        10,109        20,757        20,382  

Equipment

     3,438        3,568        3,563        3,423        3,295        7,006        7,060  

Deposit insurance assessments

     2,261        2,484        1,818        3,227        2,582        4,745        4,870  

Regulatory settlement

     —          —          —          —          —          —          10,277  

Other

     29,802        29,369        33,994        30,371        30,900        59,171        64,130  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest expense

     127,553        127,109        130,519        128,317        127,561        254,662        269,073  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

     57,055        57,371        55,843        55,946        51,281        114,426        84,655  

Income tax expense

     19,166        19,278        18,173        18,129        16,589        38,444        27,414  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 37,889      $ 38,093      $ 37,670      $ 37,817      $ 34,692      $ 75,982      $ 57,241  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net income per share: Basic

   $ 0.41      $ 0.41      $ 0.40      $ 0.40      $ 0.37      $ 0.82      $ 0.61  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

    Diluted

   $ 0.41      $ 0.41      $ 0.40      $ 0.40      $ 0.37      $ 0.82      $ 0.60  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 13

July 19, 2017

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended  
     Jun-17     Mar-17     Dec-16     Sep-16     Jun-16  

LOAN AND LEASE PORTFOLIO:

          

Commercial and industrial

   $ 1,566,459     $ 1,536,527     $ 1,612,295     $ 1,616,152     $ 1,698,089  

Real estate

          

Consumer mortgages

     2,776,213       2,675,672       2,643,966       2,611,387       2,549,989  

Home equity

     624,868       626,488       628,846       622,566       614,686  

Agricultural

     245,646       240,534       245,377       242,171       251,566  

Commercial and industrial-owner occupied

     1,795,321       1,801,613       1,764,265       1,668,477       1,644,618  

Construction, acquisition and development

     1,156,901       1,136,827       1,157,248       1,121,386       1,021,218  

Commercial real estate

     2,341,633       2,271,542       2,237,719       2,240,717       2,254,653  

Credit cards

     104,169       103,813       109,656       107,447       108,101  

All other

     407,330       408,678       412,619       428,458       433,058  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total loans

   $ 11,018,540     $ 10,801,694     $ 10,811,991     $ 10,658,761     $ 10,575,978  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ALLOWANCE FOR CREDIT LOSSES:

          

Balance, beginning of period

   $ 125,196     $ 123,736     $ 125,887     $ 126,935     $ 126,506  

Loans and leases charged-off:

          

Commercial and industrial

     (3,773     (384     (2,483     (1,180     (748

Real estate

          

Consumer mortgages

     (522     (596     (905     (595     (477

Home equity

     (125     (459     (873     (237     (224

Agricultural

     (6     (44     —         (89     (10

Commercial and industrial-owner occupied

     (1,460     (404     (20     (261     (660

Construction, acquisition and development

     (54     (30     (10     (5     (280

Commercial real estate

     (1     (19     —         (14     (870

Credit cards

     (781     (838     (815     (696     (614

All other

     (591     (559     (580     (713     (417
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total loans charged-off

     (7,313     (3,333     (5,686     (3,790     (4,300
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Recoveries:

          

Commercial and industrial

     1,034       490       1,019       263       339  

Real estate

          

Consumer mortgages

     339       625       413       327       499  

Home equity

     110       356       71       109       246  

Agricultural

     34       41       15       28       96  

Commercial and industrial-owner occupied

     481       193       201       117       101  

Construction, acquisition and development

     208       1,324       195       382       524  

Commercial real estate

     75       69       176       1,043       509  

Credit cards

     205       249       208       262       199  

All other

     192       446       237       211       216  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recoveries

     2,678       3,793       2,535       2,742       2,729  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net recoveries (charge-offs)

     (4,635     460       (3,151     (1,048     (1,571

Provision charged to operating expense

     1,000       1,000       1,000       —         2,000  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance, end of period

   $ 121,561     $ 125,196     $ 123,736     $ 125,887     $ 126,935  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average loans for period

   $ 10,883,102     $ 10,820,486     $ 10,737,802     $ 10,601,481     $ 10,513,732  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio:

          

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

     0.17     (0.02 %)      0.12     0.04     0.06
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 14

July 19, 2017

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended  
     Jun-17     Mar-17     Dec-16     Sep-16     Jun-16  

NON-PERFORMING ASSETS

          

NON-PERFORMING LOANS AND LEASES:

          

Nonaccrual Loans and Leases

          

Commercial and industrial

   $ 9,988     $ 13,959     $ 13,679     $ 11,659     $ 8,675  

Real estate

          

Consumer mortgages

     24,690       21,543       21,084       20,196       19,309  

Home equity

     3,183       3,157       3,817       3,721       2,734  

Agricultural

     6,172       5,180       1,546       1,194       1,107  

Commercial and industrial-owner occupied

     10,215       15,135       10,791       11,983       16,021  

Construction, acquisition and development

     2,223       1,466       7,022       6,939       6,086  

Commercial real estate

     6,418       13,638       13,402       14,793       14,197  

Credit cards

     122       87       161       121       159  

All other

     574       274       310       119       350  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonaccrual loans and leases

   $ 63,585     $ 74,439     $ 71,812     $ 70,725     $ 68,638  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,793       3,063       3,983       2,255       1,875  

Restructured Loans and Leases, Still Accruing

     6,303       4,060       26,047       17,936       9,687  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total non-performing loans and leases

     71,681       81,562       101,842       90,916       80,200  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

OTHER REAL ESTATE OWNED:

     7,704       8,458       7,810       11,391       14,658  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Non-performing Assets

   $ 79,385     $ 90,020     $ 109,652     $ 102,307     $ 94,858  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Additions to Nonaccrual Loans and Leases During the Quarter

   $ 17,020     $ 23,348     $ 16,007     $ 17,319     $ 10,553  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

          

Commercial and industrial

   $ 3,304     $ 4,083     $ 3,449     $ 6,736     $ 3,748  

Real estate

          

Consumer mortgages

     12,395       10,149       14,490       15,443       15,784  

Home equity

     2,590       1,720       3,072       3,854       2,842  

Agricultural

     197       364       1,283       616       367  

Commercial and industrial-owner occupied

     2,228       1,949       2,120       1,712       2,854  

Construction, acquisition and development

     2,639       3,306       1,344       1,272       1,137  

Commercial real estate

     1,183       2,631       653       15,221       3,776  

Credit cards

     705       800       726       774       677  

All other

     1,203       776       673       1,089       712  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 26,444     $ 25,778     $ 27,810     $ 46,717     $ 31,897  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Credit Quality Ratios:

          

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

     0.04     0.04     0.04     0.00     0.08

Allowance for credit losses to net loans and leases

     1.10     1.16     1.14     1.18     1.20

Allowance for credit losses to non-performing loans and leases

     169.59     153.50     121.50     138.47     158.27

Allowance for credit losses to non-performing assets

     153.13     139.08     112.84     123.05     133.82

Non-performing loans and leases to net loans and leases

     0.65     0.76     0.94     0.85     0.76

Non-performing assets to net loans and leases

     0.72     0.83     1.01     0.96     0.90

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 15

July 19, 2017

 

BancorpSouth, Inc.

Selected Loan Data

(Dollars in thousands)

(Unaudited)

 

     June 30, 2017  
     Pass      Special
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  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     March 31, 2017  
     Pass      Special
Mention
     Substandard      Doubtful      Loss      Impaired      Total  

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:

                    

Commercial and industrial

   $ 1,489,753      $ —        $ 34,936      $ —        $ —        $ 11,838      $ 1,536,527  

Real estate

                    

Consumer mortgages

     2,611,576        517        62,045        258        —          1,276        2,675,672  

Home equity

     615,753        —          9,881        —          —          854        626,488  

Agricultural

     227,902        —          8,899        141        —          3,592        240,534  

Commercial and industrial-owner occupied

     1,734,995        3,663        50,908        —          —          12,047        1,801,613  

Construction, acquisition and development

     1,124,929        —          11,621        —          —          277        1,136,827  

Commercial real estate

     2,216,915        —          42,614        —          —          12,013        2,271,542  

Credit cards

     103,813        —          —          —          —          —          103,813  

All other

     402,287        —          6,291        100        —          —          408,678  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total loans

   $ 10,527,923      $ 4,180      $ 227,195      $ 499      $ —        $ 41,897      $ 10,801,694  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 16

July 19, 2017

 

BancorpSouth, Inc.

Geographical Information

(Dollars in thousands)

(Unaudited)

 

    June 30, 2017  
    Alabama
and Florida
Panhandle
    Arkansas     Louisiana     Mississippi     Missouri     Tennessee     Texas     Other     Total  

LOAN AND LEASE PORTFOLIO:

                 

Commercial and industrial

  $ 141,372     $ 193,526     $ 194,235     $ 572,109     $ 91,371     $ 110,161     $ 207,777     $ 55,908     $ 1,566,459  

Real estate

                 

Consumer mortgages

    374,392       322,148       239,660       867,821       93,572       305,685       539,131       33,804       2,776,213  

Home equity

    96,296       45,630       69,035       232,247       21,535       141,970       16,271       1,884       624,868  

Agricultural

    8,244       83,788       25,615       67,496       8,163       13,577       38,757       6       245,646  

Commercial and industrial-owner occupied

    210,072       195,859       212,839       718,767       46,545       157,145       254,094       —         1,795,321  

Construction, acquisition and development

    120,174       70,919       52,951       352,608       18,399       166,344       375,506       —         1,156,901  

Commercial real estate

    305,774       361,460       233,986       581,939       202,629       217,300       438,545       —         2,341,633  

Credit cards

    —         —         —         —         —         —         —         104,169       104,169  

All other

    51,849       40,196       24,271       215,870       3,411       21,951       43,433       6,349       407,330  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total loans

  $ 1,308,173     $ 1,313,526     $ 1,052,592     $ 3,608,857     $ 485,625     $ 1,134,133     $ 1,913,514     $ 202,120     $ 11,018,540  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NON-PERFORMING LOANS AND LEASES:

                 

Commercial and industrial

  $ 380     $ 887     $ 1,482     $ 5,637     $ 1,250     $ 93     $ 1,364     $ 112     $ 11,205  

Real estate

                 

Consumer mortgages

    927       3,763       1,177       12,824       218       1,725       4,748       1,095       26,477  

Home equity

    382       793       819       921       80       249       —         2       3,246  

Agricultural

    —         405       204       5,563       —         —         16       —         6,188  

Commercial and industrial-owner occupied

    1,178       2,860       839       6,178       1,067       503       662       —         13,287  

Construction, acquisition and development

    45       745       237       1,062       55       49       381       —         2,574  

Commercial real estate

    989       1,067       2,117       2,135       —         13       441       —         6,762  

Credit cards

    —         —         —         —         —         —         —         1,343       1,343  

All other

    25       —         —         551       —         17       6       —         599  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total loans

  $ 3,926     $ 10,520     $ 6,875     $ 34,871     $ 2,670     $ 2,649     $ 7,618     $ 2,552     $ 71,681  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

                 

Commercial and industrial

    0.27     0.46     0.76     0.99     1.37     0.08     0.66     0.20     0.72

Real estate

                 

Consumer mortgages

    0.25     1.17     0.49     1.48     0.23     0.56     0.88     3.24     0.95

Home equity

    0.40     1.74     1.19     0.40     0.37     0.18     0.00     0.11     0.52

Agricultural

    0.00     0.48     0.80     8.24     0.00     0.00     0.04     0.00     2.52

Commercial and industrial-owner occupied

    0.56     1.46     0.39     0.86     2.29     0.32     0.26     N/A       0.74

Construction, acquisition and development

    0.04     1.05     0.45     0.30     0.30     0.03     0.10     N/A       0.22

Commercial real estate

    0.32     0.30     0.90     0.37     0.00     0.01     0.10     N/A       0.29

Credit cards

    N/A       N/A       N/A       N/A       N/A       N/A       N/A       1.29     1.29

All other

    0.05     0.00     0.00     0.26     0.00     0.08     0.01     0.00     0.15
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total loans

    0.30     0.80     0.65     0.97     0.55     0.23     0.40     1.26     0.65
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 17

July 19, 2017

 

BancorpSouth, Inc.

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended     Year to Date  
     Jun-17     Mar-17      Dec-16      Sep-16      Jun-16     Jun-17     Jun-16  

NONINTEREST REVENUE:

                 

Mortgage banking excl. MSR and MSR Hedge market value adj

   $ 7,643     $ 8,056      $ 5,561      $ 9,274      $ 11,978     $ 15,699     $ 21,762  

MSR and MSR Hedge market value adjustment

     (1,509     934        11,242        1,813        (4,092     (575     (12,046

Credit card, debit card and merchant fees

     9,565       8,903        9,262        9,292        9,495       18,468       18,456  

Deposit service charges

     9,706       9,689        9,956        11,313        11,018       19,395       22,032  

Securities gains, net

     23       1,071        39        1        86       1,094       88  

Insurance commissions

     31,126       32,940        25,709        28,194        28,803       64,066       62,052  

Trust income

     3,679       3,561        3,874        3,641        3,493       7,240       6,923  

Annuity fees

     264       349        257        446        465       613       942  

Brokerage commissions and fees

     1,332       1,264        1,270        1,225        1,389       2,596       2,591  

Bank-owned life insurance

     1,710       1,669        2,104        1,775        1,813       3,379       3,706  

Other miscellaneous income

     4,591       2,433        2,701        2,699        4,078       7,024       6,747  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total noninterest revenue

   $ 68,130     $ 70,869      $ 71,975      $ 69,673      $ 68,526     $ 138,999     $ 133,253  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

NONINTEREST EXPENSE:

                 

Salaries and employee benefits

   $ 81,597     $ 81,386      $ 80,850      $ 80,884      $ 80,675     $ 162,983     $ 162,354  

Occupancy, net of rental income

     10,455       10,302        10,294        10,412        10,109       20,757       20,382  

Equipment

     3,438       3,568        3,563        3,423        3,295       7,006       7,060  

Deposit insurance assessments

     2,261       2,484        1,818        3,227        2,582       4,745       4,870  

Regulatory settlement

     —         —          —          —          —         —         10,277  

Advertising

     1,037       663        2,443        925        1,043       1,700       1,676  

Foreclosed property expense

     960       1,050        1,005        859        1,309       2,010       2,490  

Telecommunications

     1,233       1,147        1,245        1,288        1,259       2,380       2,554  

Public relations

     654       720        716        718        599       1,374       1,260  

Data processing

     7,230       6,623        6,903        6,856        6,685       13,853       13,076  

Computer software

     2,913       2,981        3,013        2,976        2,732       5,894       5,392  

Amortization of intangibles

     1,010       1,030        963        923        869       2,040       1,749  

Legal

     1,330       1,229        1,190        1,064        1,754       2,559       6,289  

Merger expense

     —         —          —          —          1       —         2  

Postage and shipping

     1,080       1,175        1,075        1,059        985       2,255       2,102  

Other miscellaneous expense

     12,355       12,751        15,441        13,703        13,664       25,106       27,540  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total noninterest expense

   $ 127,553     $ 127,109      $ 130,519      $ 128,317      $ 127,561     $ 254,662     $ 269,073  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

INSURANCE COMMISSIONS:

                 

Property and casualty commissions

   $ 22,363     $ 19,755      $ 19,098      $ 20,927      $ 20,417       42,118     $ 40,294  

Life and health commissions

     6,623       6,465        5,757        5,897        6,252       13,088       11,867  

Risk management income

     600       648        610        674        592       1,248       1,215  

Other

     1,540       6,072        244        696        1,542       7,612       8,676  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total insurance commissions

   $ 31,126     $ 32,940      $ 25,709      $ 28,194      $ 28,803     $ 64,066     $ 62,052  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 18

July 19, 2017

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

 

     Quarter Ended  
     Jun-17     Mar-17     Dec-16     Sep-16     Jun-16  

MORTGAGE SERVICING RIGHTS:

          

Fair value, beginning of period

   $ 67,161     $ 65,263     $ 51,930     $ 48,108     $ 50,544  

Additions to mortgage servicing rights:

          

Originations of servicing assets

     2,772       2,866       4,022       4,349       3,723  

Changes in fair value:

          

Due to payoffs/paydowns

     (2,825     (1,876     (2,447     (2,338     (2,066

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

     (1,616     909       11,759       1,813       (4,092

Other changes in fair value

     (1     (1     (1     (2     (1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fair value, end of period

   $ 65,491     $ 67,161     $ 65,263     $ 51,930     $ 48,108  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

MORTGAGE BANKING REVENUE:

          

Production revenue:

          

Origination

   $ 5,771     $ 5,117     $ 3,335     $ 6,973     $ 9,366  

Servicing

     4,697       4,815       4,673       4,639       4,678  

Payoffs/Paydowns

     (2,825     (1,876     (2,447     (2,338     (2,066
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total production revenue

     7,643       8,056       5,561       9,274       11,978  

Market value adjustment on MSR

     (1,616     909       11,759       1,813       (4,092

Market value adjustment on MSR Hedge

     107       25       (517     —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total mortgage lending revenue

   $ 6,134     $ 8,990     $ 16,803     $ 11,087     $ 7,886  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Mortgage loans serviced

   $ 6,431,273     $ 6,429,617     $ 6,384,649     $ 6,285,027     $ 6,156,258  

MSR/mtg loans serviced

     1.02     1.04     1.01     0.83     0.78

AVAILABLE-FOR-SALE SECURITIES, at fair value

          

U.S. Government agencies

   $ 1,713,374     $ 1,818,180     $ 1,789,427     $ 1,691,866     $ 1,310,803  

Government agency issued residential mortgage-back securities

     159,246       167,542       176,243       184,095       180,178  

Government agency issued commercial mortgage-back securities

     170,642       170,082       172,279       178,826       193,475  

Obligations of states and political subdivisions

     345,130       352,324       360,005       384,996       399,391  

Other

     32,903       32,759       33,722       28,416       20,036  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total available-for-sale securities

   $ 2,421,295     $ 2,540,887     $ 2,531,676     $ 2,468,199     $ 2,103,883  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 19

July 19, 2017

 

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  
     6/30/2017     3/31/2017      12/31/2016      9/30/2016      6/30/2016     6/30/2017     6/30/2016  

Net income

   $ 37,889     $ 38,093      $ 37,670      $ 37,817      $ 34,692     $ 75,982     $ 57,241  

Plus:

   Merger expense, net of tax      —         —          —          —          1       —         2  
   Regulatory related charges, net of tax      —         —          —          —          —         —         9,412  

Less:

   Security gains, net of tax      14       664        25        —          53       678       55  
     

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net operating income

   $ 37,875     $ 37,429      $ 37,645      $ 37,817      $ 34,640     $ 75,304     $ 66,600  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Less:

   MSR market value adjustment, net of tax      (936     579        6,970        1,124        (2,537     (357     (7,468
     

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net operating income-excluding MSR

   $ 38,811     $ 36,850      $ 30,675      $ 36,693      $ 37,177     $ 75,661     $ 74,068  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Reconciliation of Total Operating Expense to Total Noninterest Expense:

 

Total noninterest expense

   $ 127,553      $ 127,109      $ 130,519      $ 128,317      $ 127,561      $ 254,662      $ 269,073  

Less:

  

Merger expense

     —          —          —          —          1        —          2  
  

Regulatory related charges

     —          —          —          —          —          —          13,777  
     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total operating expense

   $ 127,553      $ 127,109      $ 130,519      $ 128,317      $ 127,560      $ 254,662      $ 255,294  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

- MORE -


BXS Announces Second Quarter 2017 Financial Results

Page 20

July 19, 2017

 

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  
    6/30/2017     3/31/2017     12/31/2016     9/30/2016     6/30/2016     6/30/2017     6/30/2016  

Tangible assets

             

Total assets

  $ 14,843,130     $ 14,866,054     $ 14,724,388     $ 14,611,483     $ 14,137,160     $ 14,843,130     $ 14,137,160  

Less: Goodwill

    300,798       300,798       300,798       294,901       294,901       300,798       294,901  

  Other identifiable intangible assets

    19,854       20,865       21,894       19,908       20,831       19,854       20,831  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total tangible assets

  $ 14,522,478     $ 14,544,391     $ 14,401,696     $ 14,296,674     $ 13,821,428     $ 14,522,478     $ 13,821,428  

Tangible shareholders’ equity

             

Total shareholders’ equity

  $ 1,691,832     $ 1,702,389     $ 1,723,883     $ 1,724,104     $ 1,713,043     $ 1,691,832     $ 1,713,043  

Less: Goodwill

    300,798       300,798       300,798       294,901       294,901       300,798       294,901  

  Other identifiable intangible assets

    19,854       20,865       21,894       19,908       20,831       19,854       20,831  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total tangible shareholders’ equity

  $ 1,371,180     $ 1,380,726     $ 1,401,191     $ 1,409,295     $ 1,397,311     $ 1,371,180     $ 1,397,311  

Total average assets

  $ 14,741,811     $ 14,832,260     $ 14,655,360     $ 14,366,759     $ 14,027,786     $ 14,786,784     $ 13,939,723  

Total shares of common stock outstanding

    91,022,729       92,344,409       93,696,687       94,074,740       94,546,091       91,022,729       94,546,091  

Average shares outstanding-diluted

    91,530,552       93,829,400       93,966,392       94,563,833       94,694,795       92,686,203       94,644,168  

Tangible shareholders’ equity to tangible assets (1)

    9.44     9.49     9.73     9.86     10.11     9.44     10.11

Return on tangible equity (2)

    11.08     11.19     10.70     10.68     9.99     11.17     8.24

Operating return on tangible equity-excluding MSR (3)

    11.35     10.82     8.71     10.36     10.70     11.13     10.66

Operating return on average assets-excluding MSR (4)

    1.06     1.01     0.83     1.02     1.07     1.03     1.07

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

    9.27     8.63     7.08     8.49     8.84     8.94     8.87

Tangible book value per share (6)

  $ 15.06     $ 14.95     $ 14.95     $ 14.98     $ 14.78     $ 15.06     $ 14.78  

Operating earnings per share (7)

  $ 0.41     $ 0.40     $ 0.40     $ 0.40     $ 0.37     $ 0.81     $ 0.70  

Operating earnings per share-excluding MSR (8)

  $ 0.42     $ 0.39     $ 0.33     $ 0.39     $ 0.39     $ 0.82     $ 0.76  

 

(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.

 

- END -

View differences made from one to another to evaluate Bancorpsouth Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Bancorpsouth Inc.

Continue

Assess how Bancorpsouth Inc's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Bancorpsouth Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2017 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Material Contracts, Statements, Certifications & more

Bancorpsouth Inc provided additional information to their SEC Filing as exhibits

Ticker: BXS
CIK: 701853
Form Type: 8-K Corporate News
Accession Number: 0001193125-17-231627
Submitted to the SEC: Thu Jul 20 2017 7:01:06 AM EST
Accepted by the SEC: Thu Jul 20 2017
Period: Wednesday, July 19, 2017
Industry: State Commercial Banks
Events:
  1. Earnings Release
  2. Event for Officers
  3. Financial Exhibit
  4. Regulated Disclosure

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/bxs/0001193125-17-231627.htm