BancorpSouth Announces First Quarter 2021 Results
BancorpSouth Bank (BXS) reported record financial results for Q1 2021, with net income of $79.2 million ($0.77 per diluted share), up from $21.9 million a year earlier. The bank achieved a pre-tax pre-provision net revenue of $99.1 million, while total deposits grew by $1.3 billion (26.7% annualized). Credit quality indicators improved, with no provision for credit losses and a 16.5% decrease in non-performing assets. BancorpSouth announced a merger with Cadence Bancorporation (CADE), expected to create a $44 billion institution, enhancing growth prospects.
- Record quarterly net income of $79.2 million, or $0.77 per diluted share.
- Total deposit growth of $1.3 billion, representing an annualized increase of 26.7%.
- Improved credit quality with no recorded provision for credit losses.
- 16.5% decrease in total non-performing assets, now at $110.7 million.
- Successful handling of PPP loans, originating $463.5 million and receiving $307.9 million in forgiveness payments.
- Merger with Cadence Bancorporation expected to enhance growth and create a $44 billion entity.
- Net interest revenue decreased by 2.3% from the previous quarter.
- Net interest margin declined to 3.15%, down from 3.29% in Q4 2020.
- Loans declined by approximately $140 million, excluding PPP loans.
TUPELO, Miss., April 21, 2021 /PRNewswire/ -- BancorpSouth Bank (NYSE: BXS) (the "Company") today announced financial results for the quarter ended March 31, 2021.
Highlights for the first quarter of 2021 included:
- Achieved record quarterly net income available to common shareholders of
$79.2 million , or$0.77 per diluted common share, and record net operating income available to common shareholders – excluding MSR – of$74.8 million , or$0.73 per diluted common share. - Generated
$99.1 million in pre-tax pre-provision net revenue (PPNR), or 1.64 percent of average assets on an annualized basis. - Credit quality indicators improved as evidenced by no recorded provision for credit losses for the quarter and a decline of
$21.9 million , or 16.5 percent, in total non-performing assets. - Generated total deposit and customer repo growth of
$1.3 billion for the quarter, or 26.7 percent on an annualized basis. - Originated and funded 7,527 loans totaling
$463.5 million under the Paycheck Protection Program (PPP); received PPP forgiveness payments totaling$307.9 million during the quarter. - Continued strong mortgage production volume of
$789.8 million which contributed to mortgage production and servicing revenue of$17.9 million . - Maintained strong regulatory capital metrics; estimated total risk-based capital of 14.65 percent at March 31, 2021 compared to 14.48 percent at December 31, 2020.
- Recently received regulatory approval to complete transactions with National United Bancshares, Inc., the parent company of National United, and FNS Bancshares, Inc., the parent company of FNB Bank, which are expected to close effective May 1, 2021 and add approximately
$1.6 billion in total assets to the Company. - On April 12, 2021, announced the signing of a merger agreement with Cadence Bancorporation, the parent company of Cadence Bank N.A., which creates a
$44 billion institution on a pro forma basis that will be the 5th largest bank headquartered in the Company's nine-state footprint.
"We are pleased to report another quarter of record financial performance," remarked Dan Rollins, Chairman and Chief Executive Officer. "While the unprecedented liquidity levels in the industry continue to pressure our net interest margin and adversely impact loan demand, our teammates are doing a great job taking care of customers and controlling the things we can control. Consistent with industry trends, we reported meaningful deposit and customer repo growth for the quarter. Our mortgage team had another outstanding quarter, while our insurance and wealth management teams reported strong revenue growth for the quarter. We also originated almost
"As we look at other highlights for the quarter, we are extremely pleased with credit quality. The economies across our footprint are open and generally performing quite well. Virtually all of our credit quality indicators, including non-performing and classified assets, improved which, along with the economic forecasts utilized in our modeling process, resulted in no recorded provision for credit losses for the quarter. Finally, we continue to be pleased with our efforts to improve our expense base as reflected in the meaningful decline in total non-interest expense compared to both the first and fourth quarters of last year."
Earnings Summary
The Company reported net income available to common shareholders of
The Company reported PPNR of
Net Interest Revenue
Net interest revenue was
The
Balance Sheet Activity
Loans and leases, net of unearned income, increased
Provision for Credit Losses and Allowance for Credit Losses
Earnings for the first quarter of 2021 reflect no provision for credit losses, compared with a provision of
Total non-performing assets were
Noninterest Revenue
Noninterest revenue was
Mortgage production and servicing revenue was
Credit card, debit card, and merchant fee revenue was
Noninterest Expense
Noninterest expense for the first quarter of 2021 was
Noninterest expense for the first quarter of 2021 and the fourth quarter of 2020 included certain items that were non-routine in nature as defined by the Company. Salaries and benefits expense for the first quarter of 2021 benefited from an accrual true-up totaling approximately
Capital Management
The Company's ratio of shareholders' equity to assets was 10.95 percent at March 31, 2021, compared with 12.75 percent at March 31, 2020 and 11.72 percent at December 31, 2020. The ratio of tangible common shareholders' equity to tangible assets was 7.04 percent at March 31, 2021, compared with 7.99 percent at March 31, 2020 and 7.54 percent at December 31, 2020. The
During the first quarter of 2021, the Company did not repurchase any shares of its common stock pursuant to its share repurchase program. The Company has 6.0 million shares remaining on its current share repurchase authorization which will expire on December 31, 2021.
Estimated regulatory capital ratios at March 31, 2021 were calculated in accordance with the Basel III capital framework as well as the interagency final rule published on September 30, 2020 entitled "Revised Transition of the Current Expected Credit Losses Methodology for Allowances". The Company is a "well capitalized" bank, as defined by federal regulations, at March 31, 2021, with Tier 1 risk-based capital of 11.95 percent and total risk-based capital of 14.65 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification.
Summary
Rollins concluded, "It's an exciting time for our Company. The economies in our markets are performing quite well and, despite certain industry headwinds, we continue to be pleased with our financial performance. We look forward to the growth opportunities ahead of us. The recent merger announcement with Cadence is a transformational opportunity for our Company. We believe the strengths of each organization are complementary. Both organizations are highly focused on improving the customer experience and giving back to the communities we serve. We are also excited about the opportunity to complete our pending mergers with National United and FNB Bank next month. These two teams will be an integral part of our strategic efforts going forward as we continue to grow our Company and enhance shareholder value."
TRANSACTIONS
Cadence Bancorporation (NYSE: CADE)
On April 12, 2021, the Company announced the signing of a definitive merger agreement (the Cadence Merger Agreement) with Cadence Bancorporation, the parent company of Cadence Bank N.A., (collectively referred to as Cadence), pursuant to which Cadence will be merged with and into the Company (the Cadence Merger). Cadence operates 98 full-service banking offices in the southeast. As of December 31, 2020, Cadence collectively reported total assets of
FNS Bancshares, Inc.
On January 13, 2021, the Company announced the signing of a definitive merger agreement (the FNS Merger Agreement) with FNS Bancshares, Inc., the parent company of FNB Bank, (collectively referred to as FNS), pursuant to which FNS will be merged with and into the Company (the FNS Merger). FNS operates 17 full-service banking offices in Alabama, Georgia and Tennessee. The merger will expand the Company's presence in Jackson, DeKalb and Marshall counties in Alabama and the Chattanooga, Tennessee-Georgia and Nashville-Davidson-Murfreesboro-Franklin, Tennessee metropolitan statistical areas. As of March 31, 2021, FNS collectively reported total assets of
National United Bancshares, Inc.
On December 2, 2020, the Company announced the signing of a definitive merger agreement (the National United Merger Agreement) with National United Bancshares, Inc., the parent company of National United, (collectively referred to as National United), pursuant to which National United will be merged with and into the Company (the National United Merger). National United operates 6 full-service banking offices in the Killeen-Temple, Texas; Waco, Texas; and Austin-Round Rock-Georgetown, Texas metropolitan statistical areas. As of March 31, 2021, National United collectively reported total assets of
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 24 of this news release.
Statement Regarding Impact of COVID-19 Pandemic
The Company prioritizes the health and safety of its teammates and customers, and it will continue to do so throughout the duration of the COVID-19 pandemic. At the same time, the Company remains focused on improving shareholder value, managing credit exposure, challenging expenses, enhancing the customer experience and supporting the communities it serves. Lastly, as a SBA Preferred Lender, the Company is an active participant in the SBA's PPP for the betterment of its customers and the communities that it serves.
In the presentation that accompanies this news release and in its earnings conference call, the Company has sought and will seek to describe the historical and future impact of the COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations, including the information and discussions regarding negative pressure on its net interest margin and loan demand. Although the Company believes that the statements that pertain to future events, results and trends and their impact on the Company's business are reasonable at the present time, those statements are not historical facts and are based upon current assumptions, expectations, estimates and projections, many of which, by their nature, are beyond the Company's control. Accordingly, all discussions regarding future events, results and trends and their impact on the Company's business, even in the near term, are necessarily uncertain given the fluid and evolving nature of the pandemic.
If the health, logistical or economic effects of the pandemic worsen, or if the assumptions, expectations, estimates or projections that underlie the Company's statements regarding future effects or trends prove to be incorrect, then the Company's actual assets, business, cash flows, financial condition, liquidity, prospects and results of operations and the trading prices of its capital stock may be materially and adversely impacted in ways that the Company cannot reasonably forecast.
Accordingly, when reading this news release and the accompanying presentation and when listening to the earnings conference call, undue reliance should not be placed upon any statement pertaining to future events, results and trends and their impact on the Company's business in future periods.
Conference Call and Webcast
The Company will conduct a conference call to discuss its first quarter 2021 financial results on April 22, 2021, at 10:00 a.m. (Central Time). This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing www.bancorpsouth.investorroom.com/webcasts. The webcast will also be available in archived format at the same address.
About BancorpSouth Bank
BancorpSouth Bank (NYSE: BXS) is headquartered in Tupelo, Mississippi, with approximately
Forward-Looking Statements
Certain statements made in this news release are not statements of historical fact and constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "aspire," "assume," "believe," "budget," "contemplate," "continue," "could," "estimate," "expect," "forecast," "foresee," "goal," "hope," "indicate," "intend," "may," "might," "outlook," "plan," "project," "projection," "predict," "prospect," "potential," "roadmap," "seek," "should," "target," "will," and "would," or the negative versions of those words or other comparable words of a future or forward-looking nature. These forward-looking statements include, without limitation, discussions regarding general economic, interest rate, real estate market, competitive, employment, and credit market conditions, including the impact of the COVID-19 pandemic on the Company's business; the Company's: assets; business; cash flows; financial condition; liquidity; prospects; results of operations; deposit and customer repo growth; interest and fee-based revenue; capital resources; capital metrics; efficiency ratio; valuation of mortgage servicing rights; net income; net interest revenue; non-interest revenue; net interest margin; interest expense; non-interest expense; earnings per share; interest rate sensitivity; interest rate risk; balance sheet and liquidity management; off-balance sheet arrangements; fair value determinations; asset quality; credit quality; credit losses; provision and allowance for credit losses, impairments, charge-offs, recoveries and changes in loan volumes; investment securities portfolio yields and values; ability to manage the impact of pandemics, natural disasters and other force majeure events; adoption and use of critical accounting policies; adoption and implementation of new accounting standards and their effect on the Company's financial results and the Company's financial reporting; utilization of non-GAAP financial metrics; declaration and payment of dividends; ability to pay dividends or coupons on the Company's
Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, the Company's management at the time such statements were made. Forward-looking statements are not historical facts, are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company's control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, without limitation, potential delays or other problems in implementing and executing the Company's growth, expansion and acquisition strategies, including delays in obtaining regulatory or other necessary approvals or the failure to realize any anticipated benefits or synergies from any acquisitions or growth strategies; the risks of changes in interest rates and their effects on the level and composition of deposits, loan demand and the values of loan collateral, securities and interest sensitive assets and liabilities; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the availability of and access to capital; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans; the ability to grow additional interest and fee income or to control noninterest expense; the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR; competitive factors and pricing pressures, including their effect on the Company's net interest margin; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new and/or existing legislation and regulatory actions, including those actions in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the "Economic Aid Act") and any related rules and regulations; changes in U.S. Government monetary and fiscal policy; FDIC special assessments or changes to regular assessments; the enforcement efforts of federal and state bank regulators; possible adverse rulings, judgments, settlements and other outcomes of pending, ongoing and future litigation and governmental, administrative and investigatory matters (including litigation or actions arising from the Company's participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the PPP loan programs authorized by the CARES Act and the Economic Aid Act); the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; the impact of failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers; natural disasters or acts of war or terrorism; the adverse effects of the ongoing global COVID-19 pandemic, including the magnitude and duration of the pandemic, and the effect of actions taken to mitigate the impact of the COVID-19 pandemic on the Company, the Company's employees, the Company's customers, the global economy and the financial markets; international or political instability; impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; adoption of new accounting standards, including the effects from the adoption of the current expected credit loss methodology on January 1, 2020, or changes in existing standards; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between the Company and Cadence; the outcome of any legal proceedings that may be instituted against the Company or Cadence; the possibility that the proposed transaction will not close when expected or at all because required regulatory, shareholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated; the ability of the Company and Cadence to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of either or both parties to the proposed transaction; the possibility that the anticipated benefits of the proposed transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where the Company and Cadence do business; certain restrictions during the pendency of the proposed transaction that may impact the parties' ability to pursue certain business opportunities or strategic transactions; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management's attention from ongoing business operations and opportunities; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all and to successfully integrate Cadence's operations and those of the Company; such integration may be more difficult, time consuming or costly than expected; revenues following the proposed transaction may be lower than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; the Company and Cadence's success in executing their respective business plans and strategies and managing the risks involved in the foregoing; the dilution caused by the Company's issuance of additional shares of its capital stock in connection with the proposed transaction and other factors as detailed from time to time in the Company's press and news releases, periodic and current reports and other filings the Company files with the FDIC.
The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with the FDIC, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q and in the Company's Current Reports on Form 8-K.
Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.
BancorpSouth Bank | |||||
Selected Financial Information | |||||
(Dollars in thousands, except per share data) | |||||
(Unaudited) | |||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | |
3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | |
Earnings Summary: | |||||
Interest revenue | $ 192,783 | $ 199,287 | $ 200,670 | $ 197,472 | $ 202,064 |
Interest expense | 19,994 | 22,351 | 24,739 | 26,902 | 34,534 |
Net interest revenue | 172,789 | 176,936 | 175,931 | 170,570 | 167,530 |
Provision for credit losses | - | 5,000 | 15,000 | 20,000 | 46,000 |
Net interest revenue, after provision | |||||
for credit losses | 172,789 | 171,936 | 160,931 | 150,570 | 121,530 |
Noninterest revenue | 87,936 | 78,826 | 89,924 | 91,258 | 76,496 |
Noninterest expense | 155,823 | 167,911 | 155,505 | 162,504 | 168,006 |
Income before income taxes | 104,902 | 82,851 | 95,350 | 79,324 | 30,020 |
Income tax expense | 23,347 | 14,046 | 21,525 | 18,164 | 5,759 |
Net income | $ 81,555 | $ 68,805 | $ 73,825 | $ 61,160 | $ 24,261 |
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 |
Net income available to common shareholders | $ 79,183 | $ 66,433 | $ 71,453 | $ 58,788 | $ 21,889 |
Balance Sheet - Period End Balances | |||||
Total assets | $ 25,802,497 | $ 24,081,194 | $ 23,555,422 | $ 23,236,176 | $ 21,032,524 |
Total earning assets | 23,542,657 | 21,792,725 | 21,340,371 | 21,119,073 | 18,939,750 |
Total securities | 7,640,268 | 6,231,006 | 5,659,785 | 4,973,171 | 4,468,340 |
Loans and leases, net of unearned income | 15,038,808 | 15,022,479 | 15,327,735 | 15,427,421 | 14,224,645 |
Allowance for credit losses | 241,117 | 244,422 | 250,624 | 237,025 | 218,199 |
Net book value of acquired loans (included in loans and leases above) | 1,023,252 | 1,160,267 | 1,320,671 | 1,510,008 | 1,661,329 |
Paycheck protection program (PPP) loans (included in loans and leases above) | 1,146,000 | 975,421 | 1,212,246 | 1,192,715 | - |
Remaining loan mark on acquired loans | 10,069 | 13,886 | 16,198 | 19,977 | 22,286 |
Total deposits | 21,173,186 | 19,846,441 | 19,412,979 | 19,179,486 | 16,887,916 |
Total deposits and securities sold under agreement to repurchase | 21,833,671 | 20,484,156 | 20,024,434 | 19,849,502 | 17,426,878 |
Long-term debt | 4,295 | 4,402 | 4,508 | 4,615 | 4,721 |
Junior subordinated debt securities | 297,425 | 297,250 | 297,074 | 296,898 | 296,723 |
Total shareholders' equity | 2,825,198 | 2,822,477 | 2,782,539 | 2,732,687 | 2,681,904 |
Common shareholders' equity | 2,658,205 | 2,655,484 | 2,615,546 | 2,565,694 | 2,514,911 |
Balance Sheet - Average Balances | |||||
Total assets | $ 24,545,560 | $ 23,660,503 | $ 23,318,877 | $ 22,707,686 | $ 21,189,637 |
Total earning assets | 22,346,075 | 21,497,938 | 21,241,896 | 20,594,889 | 19,113,449 |
Total securities | 6,606,027 | 5,820,425 | 5,309,982 | 4,437,614 | 4,461,298 |
Loans and leases, net of unearned income | 15,029,076 | 15,219,402 | 15,369,684 | 15,114,732 | 14,226,788 |
PPP loans (included in loans and leases above) | 1,062,423 | 1,139,959 | 1,207,097 | 975,029 | - |
Total deposits | 20,472,080 | 19,600,863 | 19,258,930 | 18,454,472 | 16,905,229 |
Total deposits and securities sold under agreement to repurchase | 21,123,774 | 20,272,881 | 19,940,330 | 19,098,599 | 17,446,936 |
Long-term debt | 4,378 | 4,488 | 4,592 | 4,699 | 4,800 |
Junior subordinated debt securities | 297,318 | 297,145 | 296,969 | 296,793 | 296,617 |
Total shareholders' equity | 2,813,001 | 2,774,589 | 2,729,870 | 2,738,434 | 2,658,699 |
Common shareholders' equity | 2,646,008 | 2,607,596 | 2,562,877 | 2,571,441 | 2,491,678 |
Nonperforming Assets: | |||||
Non-accrual loans and leases | $ 73,142 | $ 96,378 | $ 122,108 | $ 126,753 | $ 110,074 |
Loans and leases 90+ days past due, still accruing | 21,208 | 14,320 | 17,641 | 9,877 | 7,272 |
Restructured loans and leases, still accruing | 6,971 | 10,475 | 11,154 | 11,575 | 11,284 |
Non-performing loans (NPLs) | 101,321 | 121,173 | 150,903 | 148,205 | 128,630 |
Other real estate owned | 9,351 | 11,395 | 6,397 | 7,164 | 9,200 |
Non-performing assets (NPAs) | $ 110,672 | $ 132,568 | $ 157,300 | $ 155,369 | $ 137,830 |
Financial Ratios and Other Data: | |||||
Return on average assets | |||||
Operating return on average assets-excluding MSR* | |||||
Return on average shareholders' equity | |||||
Operating return on average shareholders' equity-excluding MSR* | |||||
Return on average common shareholders' equity | |||||
Operating return on average common shareholders' equity-excluding MSR* | |||||
Return on average tangible equity* | |||||
Operating return on average tangible equity-excluding MSR* | |||||
Return on average tangible common equity* | |||||
Operating return on average tangible common equity-excluding MSR* | |||||
Pre-tax pre-provision net revenue to total average assets* | |||||
Noninterest income to average assets | |||||
Noninterest expense to average assets | |||||
Net interest margin-fully taxable equivalent | |||||
Net interest margin-fully taxable equivalent, excluding net accretion | |||||
on acquired loans and leases | |||||
Net interest rate spread | |||||
Efficiency ratio (tax equivalent)* | |||||
Operating efficiency ratio-excluding MSR (tax equivalent)* | |||||
Loan/deposit ratio | |||||
Price to earnings multiple (close) | 12.07 | 12.88 | 9.18 | 11.15 | 9.46 |
Market value to common book value | |||||
Market value to common book value (avg) | |||||
Market value to common tangible book value | |||||
Market value to common tangible book value (avg) | |||||
Employee FTE | 4,546 | 4,596 | 4,691 | 4,742 | 4,737 |
*Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 24 and 25. | |||||
Credit Quality Ratios: | |||||
Net charge-offs(recoveries) to average loans and leases (annualized) | |||||
Provision for credit losses to average loans and leases (annualized) | |||||
Allowance for credit losses to net loans and leases | |||||
Allowance for credit losses to net loans and leases, excluding PPP loans | |||||
Allowance for credit losses to non-performing loans and leases | |||||
Allowance for credit losses to non-performing assets | |||||
Non-performing loans and leases to net loans and leases | |||||
Non-performing loans and leases to net loans and leases, excluding | |||||
acquired loans and leases | |||||
Non-performing assets to total assets | |||||
Non-performing assets to total assets, excluding acquired loans and leases | |||||
Equity Ratios: | |||||
Total shareholders' equity to total assets | |||||
Total common shareholders' equity to total assets | |||||
Tangible shareholders' equity to tangible assets* | |||||
Tangible shareholders' equity to tangible assets-excluding PPP loans* | |||||
Tangible common shareholders' equity to tangible assets* | |||||
Tangible common shareholders' equity to tangible assets-excluding PPP loans* | |||||
Capital Adequacy: | |||||
Common Equity Tier 1 capital | |||||
Tier 1 capital | |||||
Total capital | |||||
Tier 1 leverage capital | |||||
Estimated for current quarter | |||||
Common Share Data: | |||||
Basic earnings per share | $ 0.77 | $ 0.65 | $ 0.70 | $ 0.57 | $ 0.21 |
Diluted earnings per share | 0.77 | 0.65 | 0.69 | 0.57 | 0.21 |
Operating earnings per share* | 0.78 | 0.69 | 0.70 | 0.57 | 0.25 |
Operating earnings per share- excluding MSR* | 0.73 | 0.69 | 0.69 | 0.59 | 0.33 |
Cash dividends per share | 0.190 | 0.190 | 0.185 | 0.185 | 0.185 |
Book value per share | 25.90 | 25.89 | 25.50 | 25.01 | 24.50 |
Tangible book value per share* | 17.08 | 17.04 | 16.71 | 16.19 | 15.66 |
Market value per share (last) | 32.48 | 27.44 | 19.38 | 22.74 | 18.92 |
Market value per share (high) | 35.59 | 28.54 | 24.29 | 25.93 | 31.61 |
Market value per share (low) | 26.95 | 18.77 | 18.11 | 17.21 | 17.24 |
Market value per share (avg) | 30.85 | 25.26 | 21.36 | 21.21 | 26.43 |
Dividend payout ratio | |||||
Total shares outstanding | 102,624,818 | 102,561,480 | 102,558,459 | 102,566,301 | 102,632,484 |
Average shares outstanding - basic | 102,622,111 | 102,569,547 | 102,564,466 | 102,603,525 | 104,354,328 |
Average shares outstanding - diluted | 102,711,584 | 102,817,409 | 102,839,749 | 102,827,225 | 104,733,897 |
Yield/Rate: | |||||
(Taxable equivalent basis) | |||||
Loans, loans held for sale, and leases net of unearned income | |||||
Loans, loans held for sale, and leases net of unearned income, excluding | |||||
net accretion on acquired loans and leases | |||||
Loans, loans held for sale, and leases net of unearned income, excluding | |||||
net accretion on acquired loans and leases - excluding PPP loans | |||||
PPP loans | N/A | ||||
Available-for-sale securities: | |||||
Taxable | |||||
Tax-exempt | |||||
Short-term, FHLB and other equity investments | |||||
Total interest earning assets and revenue | |||||
Deposits | |||||
Demand - interest bearing | |||||
Savings | |||||
Other time | |||||
Total interest bearing deposits | |||||
Short-term borrowings | |||||
Total interest bearing deposits and short-term borrowings | |||||
Junior subordinated debt | |||||
Long-term debt | |||||
Total interest bearing liabilities and expense | |||||
Interest bearing liabilities to interest earning assets | |||||
Net interest tax equivalent adjustment | $ 569 | $ 709 | $ 618 | $ 725 | $ 714 |
*Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 24 and 25. | |||||
BancorpSouth Bank | |||||||
Consolidated Balance Sheets | |||||||
(Unaudited) | |||||||
Mar-21 | Dec-20 | Sep-20 | Jun-20 | Mar-20 | |||
(Dollars in thousands) | |||||||
Assets | |||||||
Cash and due from banks | $ 263,289 | $ 284,095 | $ 306,164 | $ 240,354 | $ 253,495 | ||
Interest bearing deposits with other banks | |||||||
and Federal funds sold | 336,253 | 133,273 | 39,782 | 318,615 | 29,490 | ||
Available-for-sale securities, at fair value | 7,640,268 | 6,231,006 | 5,659,785 | 4,973,171 | 4,468,340 | ||
Loans and leases* | 15,056,559 | 15,039,239 | 15,344,006 | 15,444,794 | 14,241,912 | ||
Less: Unearned income | 17,751 | 16,760 | 16,271 | 17,373 | 17,267 | ||
Allowance for credit losses | 241,117 | 244,422 | 250,624 | 237,025 | 218,199 | ||
Net loans and leases | 14,797,691 | 14,778,057 | 15,077,111 | 15,190,396 | 14,006,446 | ||
Loans held for sale | 518,352 | 397,076 | 304,215 | 391,051 | 194,321 | ||
Premises and equipment, net | 508,508 | 508,147 | 508,149 | 504,748 | 497,669 | ||
Accrued interest receivable | 106,355 | 106,318 | 110,185 | 101,321 | 70,463 | ||
Goodwill | 851,612 | 851,612 | 847,531 | 847,984 | 848,242 | ||
Other identifiable intangibles | 53,581 | 55,899 | 54,757 | 56,989 | 59,345 | ||
Bank owned life insurance | 335,707 | 333,264 | 331,799 | 329,167 | 327,312 | ||
Other real estate owned | 9,351 | 11,395 | 6,397 | 7,164 | 9,200 | ||
Other assets | 381,530 | 391,052 | 309,547 | 275,216 | 268,201 | ||
Total Assets | $ 25,802,497 | $ 24,081,194 | $ 23,555,422 | $ 23,236,176 | $ 21,032,524 | ||
Liabilities | |||||||
Deposits: | |||||||
Demand: Noninterest bearing | $ 6,990,880 | $ 6,341,457 | $ 6,336,792 | $ 6,385,370 | $ 4,861,155 | ||
Interest bearing | 9,067,373 | 8,524,010 | 8,170,402 | 7,907,637 | 7,268,053 | ||
Savings | 2,678,276 | 2,452,059 | 2,325,980 | 2,234,853 | 2,013,343 | ||
Other time | 2,436,657 | 2,528,915 | 2,579,805 | 2,651,626 | 2,745,365 | ||
Total deposits | 21,173,186 | 19,846,441 | 19,412,979 | 19,179,486 | 16,887,916 | ||
Securities sold under agreement to repurchase | 660,485 | 637,715 | 611,455 | 670,016 | 538,962 | ||
Federal funds purchased | |||||||
and other short-term borrowing | - | - | 95,217 | 220 | 290,224 | ||
Accrued interest payable | 11,879 | 10,885 | 15,286 | 13,476 | 17,482 | ||
Junior subordinated debt securities | 297,425 | 297,250 | 297,074 | 296,898 | 296,723 | ||
Long-term debt | 4,295 | 4,402 | 4,508 | 4,615 | 4,721 | ||
Other liabilities | 830,029 | 462,024 | 336,364 | 338,778 | 314,592 | ||
Total Liabilities | 22,977,299 | 21,258,717 | 20,772,883 | 20,503,489 | 18,350,620 | ||
Shareholders' Equity | |||||||
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | ||
Common stock | 256,562 | 256,404 | 256,396 | 256,416 | 256,581 | ||
Capital surplus | 563,481 | 565,187 | 565,635 | 561,541 | 558,114 | ||
Accumulated other comprehensive (loss) income | (43,459) | 11,923 | 18,490 | 25,191 | 17,849 | ||
Retained earnings | 1,881,621 | 1,821,970 | 1,775,025 | 1,722,546 | 1,682,367 | ||
Total Shareholders' Equity | 2,825,198 | 2,822,477 | 2,782,539 | 2,732,687 | 2,681,904 | ||
Total Liabilities & Shareholders' Equity | $ 25,802,497 | $ 24,081,194 | $ 23,555,422 | $ 23,236,176 | $ 21,032,524 | ||
*Includes | |||||||
BancorpSouth Bank | |||||||
Consolidated Average Balance Sheets | |||||||
(Unaudited) | |||||||
Mar-21 | Dec-20 | Sep-20 | Jun-20 | Mar-20 | |||
(Dollars in thousands) | |||||||
Assets | |||||||
Cash and due from banks | $ 261,519 | $ 247,799 | $ 232,421 | $ 229,334 | $ 246,860 | ||
Interest bearing deposits with other banks | |||||||
and Federal funds sold | 412,313 | 171,650 | 257,057 | 760,789 | 239,766 | ||
Available-for-sale securities, at fair value | 6,606,027 | 5,820,425 | 5,309,982 | 4,437,614 | 4,461,298 | ||
Loans and leases* | 15,045,837 | 15,235,827 | 15,386,721 | 15,132,600 | 14,244,649 | ||
Less: Unearned income | 16,761 | 16,425 | 17,037 | 17,868 | 17,861 | ||
Allowance for credit losses | 242,935 | 247,049 | 236,536 | 217,508 | 193,796 | ||
Net loans and leases | 14,786,141 | 14,972,353 | 15,133,148 | 14,897,224 | 14,032,992 | ||
Loans held for sale | 289,755 | 277,600 | 296,352 | 261,377 | 147,798 | ||
Premises and equipment, net | 508,551 | 508,053 | 507,190 | 499,767 | 494,413 | ||
Accrued interest receivable | 102,190 | 105,513 | 104,435 | 137,456 | 64,010 | ||
Goodwill | 851,612 | 852,472 | 847,744 | 848,160 | 844,635 | ||
Other identifiable intangibles | 54,876 | 54,858 | 56,045 | 58,280 | 58,805 | ||
Bank owned life insurance | 333,837 | 332,543 | 330,642 | 328,037 | 326,808 | ||
Other real estate owned | 11,043 | 14,872 | 7,754 | 8,410 | 8,151 | ||
Other assets | 327,696 | 302,365 | 236,107 | 241,238 | 264,101 | ||
Total Assets | $ 24,545,560 | $ 23,660,503 | $ 23,318,877 | $ 22,707,686 | $ 21,189,637 | ||
Liabilities | |||||||
Deposits: | |||||||
Demand: Noninterest bearing | $ 6,484,703 | $ 6,391,006 | $ 6,340,942 | $ 5,942,570 | $ 4,717,202 | ||
Interest bearing | 8,956,420 | 8,268,528 | 8,022,755 | 7,674,479 | 7,466,674 | ||
Savings | 2,550,095 | 2,386,034 | 2,280,860 | 2,152,092 | 1,975,690 | ||
Other time | 2,480,862 | 2,555,295 | 2,614,373 | 2,685,331 | 2,745,663 | ||
Total deposits | 20,472,080 | 19,600,863 | 19,258,930 | 18,454,472 | 16,905,229 | ||
Securities sold under agreement to repurchase | 651,694 | 672,018 | 681,400 | 644,127 | 541,707 | ||
Federal funds purchased | |||||||
and other short-term borrowing | 1,500 | 3,893 | 36,696 | 269,121 | 502,257 | ||
Accrued interest payable | 11,607 | 14,175 | 15,589 | 16,268 | 19,205 | ||
Junior subordinated debt securities | 297,318 | 297,145 | 296,969 | 296,793 | 296,617 | ||
Long-term debt | 4,378 | 4,488 | 4,592 | 4,699 | 4,800 | ||
Other liabilities | 293,982 | 293,332 | 294,831 | 283,772 | 261,123 | ||
Total Liabilities | 21,732,559 | 20,885,914 | 20,589,007 | 19,969,252 | 18,530,938 | ||
Shareholders' Equity | |||||||
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 167,021 | ||
Common stock | 256,536 | 256,422 | 256,412 | 256,515 | 261,065 | ||
Capital surplus | 563,529 | 568,343 | 563,267 | 559,737 | 600,880 | ||
Accumulated other comprehensive (loss) income | (5,090) | 12,432 | 24,758 | 23,016 | (36,367) | ||
Retained earnings | 1,831,033 | 1,770,399 | 1,718,440 | 1,732,173 | 1,666,100 | ||
Total Shareholders' Equity | 2,813,001 | 2,774,589 | 2,729,870 | 2,738,434 | 2,658,699 | ||
Total Liabilities & Shareholders' Equity | $ 24,545,560 | $ 23,660,503 | $ 23,318,877 | $ 22,707,686 | $ 21,189,637 | ||
*Includes | |||||||
BancorpSouth Bank | |||||||||
Consolidated Condensed Statements of Income | |||||||||
(Dollars in thousands, except per share data) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Mar-21 | Dec-20 | Sep-20 | Jun-20 | Mar-20 | |||||
INTEREST REVENUE: | |||||||||
Loans and leases | $ 169,195 | $ 174,072 | $ 175,810 | $ 173,164 | $ 177,019 | ||||
Deposits with other banks | 108 | 50 | 74 | 207 | 739 | ||||
Federal funds sold, securities purchased | |||||||||
under agreement to resell, FHLB and | |||||||||
other equity investments | 6 | 6 | 52 | 178 | 315 | ||||
Available-for-sale securities: | |||||||||
Taxable | 21,192 | 21,895 | 21,280 | 20,783 | 21,508 | ||||
Tax-exempt | 687 | 760 | 986 | 1,178 | 1,060 | ||||
Loans held for sale | 1,595 | 2,504 | 2,468 | 1,962 | 1,423 | ||||
Total interest revenue | 192,783 | 199,287 | 200,670 | 197,472 | 202,064 | ||||
INTEREST EXPENSE: | |||||||||
Interest bearing demand | 8,796 | 9,766 | 10,773 | 11,631 | 15,522 | ||||
Savings | 700 | 872 | 1,012 | 943 | 1,290 | ||||
Other time | 6,966 | 8,189 | 9,287 | 10,296 | 11,168 | ||||
Federal funds purchased and securities sold | |||||||||
under agreement to repurchase | 203 | 276 | 279 | 291 | 1,436 | ||||
Short-term and long-term debt | 45 | 47 | 49 | 477 | 1,857 | ||||
Junior subordinated debt | 3,269 | 3,201 | 3,338 | 3,263 | 3,261 | ||||
Other | 15 | - | 1 | 1 | - | ||||
Total interest expense | 19,994 | 22,351 | 24,739 | 26,902 | 34,534 | ||||
Net interest revenue | 172,789 | 176,936 | 175,931 | 170,570 | 167,530 | ||||
Provision for credit losses | - | 5,000 | 15,000 | 20,000 | 46,000 | ||||
Net interest revenue, after provision for | |||||||||
credit losses | 172,789 | 171,936 | 160,931 | 150,570 | 121,530 | ||||
NONINTEREST REVENUE: | |||||||||
Mortgage banking | 25,310 | 20,129 | 27,097 | 29,557 | 9,470 | ||||
Credit card, debit card and merchant fees | 9,659 | 10,053 | 9,938 | 9,080 | 9,176 | ||||
Deposit service charges | 8,477 | 9,708 | 8,892 | 7,647 | 11,682 | ||||
Security gains(losses), net | 82 | 63 | 18 | 62 | (85) | ||||
Insurance commissions | 30,667 | 29,815 | 32,750 | 33,118 | 29,603 | ||||
Wealth management | 8,465 | 6,751 | 6,471 | 6,421 | 6,570 | ||||
Other | 5,276 | 2,307 | 4,758 | 5,373 | 10,080 | ||||
Total noninterest revenue | 87,936 | 78,826 | 89,924 | 91,258 | 76,496 | ||||
NONINTEREST EXPENSE: | |||||||||
Salaries and employee benefits | 101,060 | 97,215 | 104,219 | 108,103 | 108,272 | ||||
Occupancy, net of rental income | 12,814 | 13,004 | 13,053 | 12,890 | 12,708 | ||||
Equipment | 4,564 | 4,756 | 4,519 | 4,762 | 4,649 | ||||
Deposit insurance assessments | 1,455 | 1,696 | 1,522 | 1,962 | 1,546 | ||||
Pension settlement expense | - | 5,846 | - | - | - | ||||
Other | 35,930 | 45,394 | 32,192 | 34,787 | 40,831 | ||||
Total noninterest expense | 155,823 | 167,911 | 155,505 | 162,504 | 168,006 | ||||
Income before income taxes | 104,902 | 82,851 | 95,350 | 79,324 | 30,020 | ||||
Income tax expense | 23,347 | 14,046 | 21,525 | 18,164 | 5,759 | ||||
Net income | $ 81,555 | $ 68,805 | $ 73,825 | $ 61,160 | $ 24,261 | ||||
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | ||||
Net income available to common shareholders | $ 79,183 | $ 66,433 | $ 71,453 | $ 58,788 | $ 21,889 | ||||
Net income per common share: Basic | $ 0.77 | $ 0.65 | $ 0.70 | $ 0.57 | $ 0.21 | ||||
Diluted | $ 0.77 | $ 0.65 | $ 0.69 | $ 0.57 | $ 0.21 | ||||
BancorpSouth Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Mar-21 | Dec-20 | Sep-20 | Jun-20 | Mar-20 | |||||
LOAN AND LEASE PORTFOLIO: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | 2,865,706 | 2,673,429 | 2,937,608 | 3,038,957 | 2,008,043 | ||||
Commercial and industrial-owner occupied | 2,260,456 | 2,281,127 | 2,297,008 | 2,296,287 | 2,290,585 | ||||
Total commercial and industrial | 5,126,162 | 4,954,556 | 5,234,616 | 5,335,244 | 4,298,628 | ||||
Commercial real estate | |||||||||
Agricultural | 337,710 | 317,994 | 333,839 | 333,615 | 339,539 | ||||
Construction, acquisition and development | 1,707,800 | 1,728,682 | 1,700,030 | 1,658,678 | 1,582,039 | ||||
Commercial real estate | 3,127,510 | 3,211,434 | 3,229,959 | 3,323,744 | 3,303,537 | ||||
Total commercial real estate | 5,173,020 | 5,258,110 | 5,263,828 | 5,316,037 | 5,225,115 | ||||
Consumer | |||||||||
Consumer mortgages | 3,700,076 | 3,726,241 | 3,704,490 | 3,646,168 | 3,572,277 | ||||
Home equity | 608,924 | 630,097 | 658,708 | 655,543 | 686,202 | ||||
Credit cards | 81,499 | 89,077 | 85,760 | 86,592 | 93,896 | ||||
Total consumer | 4,390,499 | 4,445,415 | 4,448,958 | 4,388,303 | 4,352,375 | ||||
All other | 349,127 | 364,398 | 380,333 | 387,837 | 348,527 | ||||
Total loans | $ 15,038,808 | $ 15,022,479 | $ 15,327,735 | $ 15,427,421 | $ 14,224,645 | ||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||
Balance, beginning of period | $ 244,422 | $ 250,624 | $ 237,025 | $ 218,199 | $ 119,066 | ||||
Impact of adopting ASC 326 - cumulative effect adjustment | - | - | - | - | 40,000 | ||||
Impact of adopting ASC 326 - purchased loans with credt | |||||||||
deterioration | - | - | - | - | 22,634 | ||||
Loans and leases charged-off: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | (2,269) | (4,343) | (560) | (1,506) | (10,792) | ||||
Commercial and industrial-owner occupied | (677) | (1,168) | (441) | (13) | (184) | ||||
Total commercial and industrial | (2,946) | (5,511) | (1,001) | (1,519) | (10,976) | ||||
Commercial real estate | |||||||||
Agricultural | (98) | (155) | - | (21) | (65) | ||||
Construction, acquisition and development | (807) | (1,773) | - | (9) | (3,173) | ||||
Commercial real estate | (478) | (3,134) | (738) | - | (67) | ||||
Total commercial real estate | (1,383) | (5,062) | (738) | (30) | (3,305) | ||||
Consumer | |||||||||
Consumer mortgages | (293) | (731) | (81) | (124) | (524) | ||||
Home equity | (50) | (395) | (41) | (162) | (236) | ||||
Credit cards | (733) | (458) | (682) | (703) | (798) | ||||
Total consumer | (1,076) | (1,584) | (804) | (989) | (1,558) | ||||
All other | (501) | (875) | (599) | (396) | (914) | ||||
Total loans charged-off | (5,906) | (13,032) | (3,142) | (2,934) | (16,753) | ||||
Recoveries: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | 1,031 | 779 | 294 | 277 | 355 | ||||
Commercial and industrial-owner occupied | 62 | 37 | 163 | 136 | 1,179 | ||||
Total commercial and industrial | 1,093 | 816 | 457 | 413 | 1,534 | ||||
Commercial real estate | |||||||||
Agricultural | 86 | 24 | 3 | 6 | 6 | ||||
Construction, acquisition and development | 53 | 73 | 55 | 172 | 245 | ||||
Commercial real estate | 56 | 45 | 209 | 50 | 135 | ||||
Total commercial real estate | 195 | 142 | 267 | 228 | 386 | ||||
Consumer | |||||||||
Consumer mortgages | 403 | 230 | 352 | 345 | 397 | ||||
Home equity | 220 | 151 | 132 | 259 | 80 | ||||
Credit cards | 297 | 211 | 270 | 195 | 285 | ||||
Total consumer | 920 | 592 | 754 | 799 | 762 | ||||
All other | 393 | 280 | 263 | 320 | 344 | ||||
Total recoveries | 2,601 | 1,830 | 1,741 | 1,760 | 3,026 | ||||
Net (charge-offs)recoveries | (3,305) | (11,202) | (1,401) | (1,174) | (13,727) | ||||
Initial allowance on loans purchased with credit deterioration | - | - | - | - | 4,226 | ||||
Provision: | |||||||||
Initial provision for loans acquired during the quarter | - | - | - | - | 1,000 | ||||
Provision for credit losses related to loans and leases | - | 5,000 | 15,000 | 20,000 | 45,000 | ||||
Total provision | - | 5,000 | 15,000 | 20,000 | 46,000 | ||||
Balance, end of period | $ 241,117 | $ 244,422 | $ 250,624 | $ 237,025 | $ 218,199 | ||||
Average loans for period | |||||||||
Ratio: | |||||||||
Net charge-offs(recoveries) to average loans (annualized) | |||||||||
BancorpSouth Bank | ||||||||||
Selected Loan Data | ||||||||||
(Dollars in thousands) | ||||||||||
(Unaudited) | ||||||||||
Quarter Ended | ||||||||||
Mar-21 | Dec-20 | Sep-20 | Jun-20 | Mar-20 | ||||||
BXS ORIGINATED LOANS AND LEASES: | ||||||||||
Loans and leases charged off: | ||||||||||
Commercial and industrial | ||||||||||
Commercial and industrial-non real estate | $ (1,971) | $ (1,991) | $ (490) | $ (420) | $ (230) | |||||
Commercial and industrial-owner occupied | (187) | (303) | (434) | (13) | (19) | |||||
Total commercial and industrial | (2,158) | (2,294) | (924) | (433) | (249) | |||||
Commercial real estate | ||||||||||
Agricultural | (94) | (124) | - | - | (65) | |||||
Construction, acquisition and development | (344) | (1,709) | - | - | (121) | |||||
Commercial real estate | (27) | (1,704) | (155) | - | (67) | |||||
Total real estate | (465) | (3,537) | (155) | - | (253) | |||||
Consumer | ||||||||||
Consumer mortgages | (181) | (537) | (70) | (113) | (357) | |||||
Home equity | (50) | (395) | (41) | (162) | (236) | |||||
Credit cards | (733) | (458) | (682) | (703) | (798) | |||||
Total consumer | (964) | (1,390) | (793) | (978) | (1,391) | |||||
All other | (399) | (698) | (459) | (288) | (704) | |||||
Total loans charged off | (3,986) | (7,919) | (2,331) | (1,699) | (2,597) | |||||
Recoveries: | ||||||||||
Commercial and industrial | ||||||||||
Commercial and industrial-non real estate | 387 | 645 | 231 | 210 | 325 | |||||
Commercial and industrial-owner occupied | 61 | 27 | 163 | 136 | 1,177 | |||||
Total commercial and industrial | 448 | 672 | 394 | 346 | 1,502 | |||||
Commercial real estate | ||||||||||
Agricultural | 5 | 23 | 3 | 5 | 4 | |||||
Construction, acquisition and development | 51 | 73 | 55 | 170 | 244 | |||||
Commercial real estate | 36 | 45 | 208 | 50 | 135 | |||||
Total real estate | 92 | 141 | 266 | 225 | 383 | |||||
Consumer | ||||||||||
Consumer mortgages | 392 | 221 | 350 | 343 | 395 | |||||
Home equity | 219 | 149 | 130 | 258 | 79 | |||||
Credit cards | 297 | 211 | 270 | 195 | 285 | |||||
Total consumer | 908 | 581 | 750 | 796 | 759 | |||||
All other | 325 | 249 | 235 | 275 | 316 | |||||
Total recoveries | 1,773 | 1,643 | 1,645 | 1,642 | 2,960 | |||||
Net (charge-offs)/recoveries | $ (2,213) | $ (6,276) | $ (686) | $ (57) | $ 363 | |||||
BancorpSouth Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Mar-21 | Dec-20 | Sep-20 | Jun-20 | Mar-20 | |||||
ACQUIRED LOANS AND LEASES: | |||||||||
Loans and leases charged off: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | $ (298) | $ (2,352) | $ (70) | $ (1,086) | $ (10,562) | ||||
Commercial and industrial-owner occupied | (490) | (865) | (7) | - | (165) | ||||
Total commercial and industrial | (788) | (3,217) | (77) | (1,086) | (10,727) | ||||
Commercial real estate | |||||||||
Agricultural | (4) | (31) | - | (21) | - | ||||
Construction, acquisition and development | (463) | (64) | - | (9) | (3,052) | ||||
Commercial real estate | (451) | (1,430) | (583) | - | - | ||||
Total real estate | (918) | (1,525) | (583) | (30) | (3,052) | ||||
Consumer | |||||||||
Consumer mortgages | (112) | (194) | (11) | (11) | (167) | ||||
Home equity | - | - | - | - | - | ||||
Credit cards | - | - | - | - | - | ||||
Total consumer | (112) | (194) | (11) | (11) | (167) | ||||
All other | (102) | (177) | (140) | (108) | (210) | ||||
Total loans charged off | (1,920) | (5,113) | (811) | (1,235) | (14,156) | ||||
Recoveries: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | 644 | 134 | 63 | 67 | 30 | ||||
Commercial and industrial-owner occupied | 1 | 10 | - | - | 2 | ||||
Total commercial and industrial | 645 | 144 | 63 | 67 | 32 | ||||
Commercial real estate | |||||||||
Agricultural | 81 | 1 | - | 1 | 2 | ||||
Construction, acquisition and development | 2 | - | - | 2 | 1 | ||||
Commercial real estate | 20 | - | 1 | - | - | ||||
Total real estate | 103 | 1 | 1 | 3 | 3 | ||||
Consumer | |||||||||
Consumer mortgages | 11 | 9 | 2 | 2 | 2 | ||||
Home equity | 1 | 2 | 2 | 1 | 1 | ||||
Credit cards | - | - | - | - | - | ||||
Total consumer | 12 | 11 | 4 | 3 | 3 | ||||
All other | 68 | 31 | 28 | 45 | 28 | ||||
Total recoveries | 828 | 187 | 96 | 118 | 66 | ||||
Net (charge-offs)/recoveries | $ (1,092) | $ (4,926) | $ (715) | $ (1,117) | $ (14,090) | ||||
BancorpSouth Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Mar-21 | Dec-20 | Sep-20 | Jun-20 | Mar-20 | |||||
NON-PERFORMING ASSETS | |||||||||
NON-PERFORMING LOANS AND LEASES: | |||||||||
Nonaccrual Loans and Leases | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | $ 9,703 | $ 12,768 | $ 17,936 | $ 16,124 | $ 16,589 | ||||
Commercial and industrial-owner occupied | 15,019 | 15,783 | 18,343 | 16,745 | 11,212 | ||||
Total commercial and industrial | 24,722 | 28,551 | 36,279 | 32,869 | 27,801 | ||||
Commercial real estate | |||||||||
Agricultural | 2,293 | 5,013 | 5,907 | 5,244 | 5,454 | ||||
Construction, acquisition and development | 8,494 | 9,738 | 10,434 | 9,715 | 13,899 | ||||
Commercial real estate | 12,838 | 16,249 | 32,554 | 45,047 | 29,697 | ||||
Total commercial real estate | 23,625 | 31,000 | 48,895 | 60,006 | 49,050 | ||||
Consumer | |||||||||
Consumer mortgages | 23,535 | 32,951 | 32,872 | 30,672 | 29,834 | ||||
Home equity | 847 | 2,657 | 3,325 | 2,584 | 2,597 | ||||
Credit cards | 131 | 173 | 144 | 90 | 122 | ||||
Total consumer | 24,513 | 35,781 | 36,341 | 33,346 | 32,553 | ||||
All other | 282 | 1,046 | 593 | 532 | 670 | ||||
Total nonaccrual loans and leases | $ 73,142 | $ 96,378 | $ 122,108 | $ 126,753 | $ 110,074 | ||||
Loans and Leases 90+ Days Past Due, Still Accruing: | 21,208 | 14,320 | 17,641 | 9,877 | 7,272 | ||||
Restructured Loans and Leases, Still Accruing | 6,971 | 10,475 | 11,154 | 11,575 | 11,284 | ||||
Total non-performing loans and leases | $ 101,321 | $ 121,173 | $ 150,903 | $ 148,205 | $ 128,630 | ||||
OTHER REAL ESTATE OWNED: | 9,351 | 11,395 | 6,397 | 7,164 | 9,200 | ||||
Total Non-performing Assets | $ 110,672 | $ 132,568 | $ 157,300 | $ 155,369 | $ 137,830 | ||||
BXS originated assets | $ 85,266 | $ 97,025 | $ 109,418 | $ 94,155 | $ 85,908 | ||||
Acquired assets | 25,406 | 35,543 | 47,882 | 61,214 | 51,922 | ||||
Total Non-performing Assets | $ 110,672 | $ 132,568 | $ 157,300 | $ 155,369 | $ 137,830 | ||||
Additions to Nonaccrual Loans and Leases During the Quarter | $ 10,029 | $ 11,087 | $ 19,973 | $ 36,619 | $ 47,523 | ||||
Loans and Leases 30-89 Days Past Due, Still Accruing: | |||||||||
BXS originated loans | $ 34,929 | $ 40,424 | $ 42,978 | $ 35,002 | $ 54,315 | ||||
Acquired loans | 2,798 | 6,048 | 5,694 | 10,450 | 14,405 | ||||
Total Loans and Leases 30-89 days past due, still accruing | $ 37,727 | $ 46,472 | $ 48,672 | $ 45,452 | $ 68,720 | ||||
BancorpSouth Bank | ||||||||||||
Selected Loan Data | ||||||||||||
(Dollars in thousands) | ||||||||||||
(Unaudited) | ||||||||||||
March 31, 2021 | ||||||||||||
Purchased | ||||||||||||
Special | Credit | |||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Impaired | Deteriorated (Loss) | Total | |||||
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE: | ||||||||||||
Commercial and industrial | ||||||||||||
Commercial and industrial-non real estate | $ 2,825,297 | $ - | $ 30,526 | $ 171 | $ - | $ 1,909 | $ 7,803 | $ 2,865,706 | ||||
Commercial and industrial-owner occupied | 2,184,516 | 3,471 | 58,754 | - | - | 11,086 | 2,629 | 2,260,456 | ||||
Total commercial and industrial | 5,009,813 | 3,471 | 89,280 | 171 | - | 12,995 | 10,432 | 5,126,162 | ||||
Commercial real estate | ||||||||||||
Agricultural | 331,802 | - | 2,877 | - | - | 705 | 2,326 | 337,710 | ||||
Construction, acquisition and development | 1,659,787 | 1,534 | 38,665 | - | - | 2,448 | 5,366 | 1,707,800 | ||||
Commercial real estate | 2,987,075 | - | 127,147 | - | - | 9,642 | 3,646 | 3,127,510 | ||||
Total commercial real estate | 4,978,664 | 1,534 | 168,689 | - | - | 12,795 | 11,338 | 5,173,020 | ||||
Consumer | ||||||||||||
Consumer mortgages | 3,629,182 | - | 67,881 | - | - | 2,825 | 188 | 3,700,076 | ||||
Home equity | 603,768 | - | 5,156 | - | - | - | - | 608,924 | ||||
Credit cards | 81,499 | - | - | - | - | - | - | 81,499 | ||||
Total consumer | 4,314,449 | - | 73,037 | - | - | 2,825 | 188 | 4,390,499 | ||||
All other | 343,656 | - | 5,404 | - | - | - | 67 | 349,127 | ||||
Total loans | $ 5,005 | $ 336,410 | $ 171 | $ - | $ 28,615 | $ 22,025 | $ 15,038,808 | |||||
BXS originated loans | $ 5,005 | $ 252,140 | $ 171 | $ - | $ 18,188 | $ - | $ 13,910,557 | |||||
Acquired loans* | 1,011,529 | - | 84,270 | - | - | 10,427 | 22,025 | 1,128,251 | ||||
Total Loans | $ 5,005 | $ 336,410 | $ 171 | $ - | $ 28,615 | $ 22,025 | $ 15,038,808 | |||||
December 31, 2020 | ||||||||||||
Purchased | ||||||||||||
Special | Credit | |||||||||||
Pass | Mention | Substandard | Doubtful | Loss | Impaired | Deteriorated (Loss) | Total | |||||
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE: | ||||||||||||
Commercial and industrial | ||||||||||||
Commercial and industrial-non real estate | $ 2,616,471 | $ 7,202 | $ 39,040 | $ 172 | $ - | $ 1,949 | $ 8,595 | $ 2,673,429 | ||||
Commercial and industrial-owner occupied | 2,208,214 | - | 58,683 | - | - | 11,579 | 2,651 | 2,281,127 | ||||
Total commercial and industrial | 4,824,685 | 7,202 | 97,723 | 172 | - | 13,528 | 11,246 | 4,954,556 | ||||
Commercial real estate | ||||||||||||
Agricultural | 310,766 | - | 4,526 | - | - | 777 | 1,925 | 317,994 | ||||
Construction, acquisition and development | 1,686,907 | 1,534 | 32,363 | - | - | 2,054 | 5,824 | 1,728,682 | ||||
Commercial real estate | 3,062,894 | - | 134,054 | - | - | 10,780 | 3,706 | 3,211,434 | ||||
Total commercial real estate | 5,060,567 | 1,534 | 170,943 | - | - | 13,611 | 11,455 | 5,258,110 | ||||
Consumer | ||||||||||||
Consumer mortgages | 3,645,357 | - | 78,287 | - | - | 2,406 | 191 | 3,726,241 | ||||
Home equity | 624,581 | - | 5,516 | - | - | - | - | 630,097 | ||||
Credit cards | 89,077 | - | - | - | - | - | - | 89,077 | ||||
Total consumer | 4,359,015 | - | 83,803 | - | - | 2,406 | 191 | 4,445,415 | ||||
All other | 357,812 | - | 6,519 | - | - | - | 67 | 364,398 | ||||
Total loans | $ 8,736 | $ 358,988 | $ 172 | $ - | $ 29,545 | $ 22,959 | $ 15,022,479 | |||||
BXS originated loans | $ 8,736 | $ 259,682 | $ 172 | $ - | $ 17,520 | $ - | $ 13,745,639 | |||||
Acquired loans* | 1,142,550 | - | 99,306 | - | - | 12,025 | 22,959 | 1,276,840 | ||||
Total Loans | $ 8,736 | $ 358,988 | $ 172 | $ - | $ 29,545 | $ 22,959 | $ 15,022,479 | |||||
*Includes certain loans that are no longer included in the "Net book value of acquired loans" on page 10 as a result of maturity, refinance, or other triggering event. | ||||||||||||
BancorpSouth Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Mar-21 | Dec-20 | Sep-20 | Jun-20 | Mar-20 | |||||
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE: | |||||||||
Pass | $ 13,821,602 | ||||||||
Special Mention | 5,005 | 8,736 | - | 4,264 | 7,129 | ||||
Substandard | 336,410 | 358,988 | 372,483 | 350,264 | 323,697 | ||||
Doubtful | 171 | 172 | 178 | 179 | 191 | ||||
Loss | - | - | - | - | 667 | ||||
Impaired | 28,615 | 29,545 | 49,818 | 57,406 | 40,627 | ||||
Purchased Credit Deteriorated (Loss) | 22,025 | 22,959 | 27,313 | 29,635 | 30,732 | ||||
Total | $ 14,224,645 | ||||||||
BXS ORIGINATED LOAN PORTFOLIO BY INTERNALLY | |||||||||
ASSIGNED GRADE: | |||||||||
Pass | $ 12,150,616 | ||||||||
Special Mention | 5,005 | 8,736 | - | 2,741 | 2,045 | ||||
Substandard | 252,140 | 259,682 | 252,875 | 231,687 | 225,506 | ||||
Doubtful | 171 | 172 | 178 | 179 | 191 | ||||
Loss | - | - | - | - | - | ||||
Impaired | 18,188 | 17,520 | 30,909 | 28,288 | 22,356 | ||||
Purchased Credit Deteriorated (Loss) | - | - | - | - | - | ||||
Total | $ 12,400,714 | ||||||||
ACQUIRED LOAN PORTFOLIO BY INTERNALLY | |||||||||
ASSIGNED GRADE: | |||||||||
Pass | $ 1,011,529 | $ 1,142,550 | $ 1,285,483 | $ 1,469,381 | $ 1,670,986 | ||||
Special Mention | - | - | - | 1,523 | 5,084 | ||||
Substandard | 84,270 | 99,306 | 119,608 | 118,577 | 98,191 | ||||
Doubtful | - | - | - | - | - | ||||
Loss | - | - | - | - | 667 | ||||
Impaired | 10,427 | 12,025 | 18,909 | 29,118 | 18,271 | ||||
Purchased Credit Deteriorated (Loss) | 22,025 | 22,959 | 27,313 | 29,635 | 30,732 | ||||
Total | $ 1,128,251 | $ 1,276,840 | $ 1,451,313 | $ 1,648,234 | $ 1,823,931 | ||||
BancorpSouth Bank | |||||||||
Geographical Information | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
March 31, 2021 | |||||||||
Alabama | |||||||||
and Florida | |||||||||
Panhandle | Arkansas | Louisiana | Mississippi | Missouri | Tennessee | Texas | Other | Total | |
LOAN AND LEASE PORTFOLIO: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | $ 254,421 | $ 205,840 | $ 331,255 | $ 674,111 | $ 87,701 | $ 175,804 | $ 3,749 | $ 2,865,706 | |
Commercial and industrial-owner occupied | 265,198 | 180,900 | 229,123 | 592,555 | 64,563 | 123,882 | 787,661 | 16,574 | 2,260,456 |
Total commercial and industrial | 519,619 | 386,740 | 560,378 | 1,266,666 | 152,264 | 299,686 | 1,920,486 | 20,323 | 5,126,162 |
Commercial real estate | |||||||||
Agricultural | 26,692 | 69,704 | 22,287 | 69,210 | 7,834 | 11,234 | 130,343 | 406 | 337,710 |
Construction, acquisition and development | 202,159 | 52,596 | 74,407 | 346,196 | 12,741 | 83,245 | 936,258 | 198 | 1,707,800 |
Commercial real estate | 316,143 | 320,806 | 243,605 | 645,649 | 204,343 | 218,316 | 1,177,921 | 727 | 3,127,510 |
Total commercial real estate | 544,994 | 443,106 | 340,299 | 1,061,055 | 224,918 | 312,795 | 2,244,522 | 1,331 | 5,173,020 |
Consumer | |||||||||
Consumer mortgages | 594,984 | 319,060 | 326,864 | 811,487 | 110,284 | 327,596 | 1,157,824 | 51,977 | 3,700,076 |
Home equity | 92,721 | 44,282 | 73,245 | 209,906 | 16,218 | 130,875 | 41,573 | 104 | 608,924 |
Credit cards | - | - | - | - | - | - | - | 81,499 | 81,499 |
Total consumer | 687,705 | 363,342 | 400,109 | 1,021,393 | 126,502 | 458,471 | 1,199,397 | 133,580 | 4,390,499 |
All other | 48,036 | 36,285 | 46,268 | 117,094 | 2,030 | 22,245 | 73,793 | 3,376 | 349,127 |
Total loans | $ 505,714 | $ 158,610 | |||||||
Loan growth, excluding loans acquired during | |||||||||
the quarter (annualized) | ( | ( | ( | ( | ( | ||||
Loan growth, excluding PPP loans (annualized) | ( | ( | ( | ( | ( | ( | ( | ( | |
NON-PERFORMING LOANS AND LEASES: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | $ 188 | $ 776 | $ 1,176 | $ 841 | $ 1,162 | $ 422 | $ 5,546 | $ 156 | $ 10,267 |
Commercial and industrial-owner occupied | 607 | 1,225 | 373 | 1,512 | 166 | - | 13,351 | - | 17,234 |
Total commercial and industrial | 795 | 2,001 | 1,549 | 2,353 | 1,328 | 422 | 18,897 | 156 | 27,501 |
Commercial real estate | |||||||||
Agricultural | 63 | 337 | - | 965 | - | - | 1,522 | - | 2,887 |
Construction, acquisition and development | - | 131 | 1,149 | 83 | - | 189 | 10,838 | - | 12,390 |
Commercial real estate | 2,027 | 243 | 1,766 | 896 | - | - | 8,584 | - | 13,516 |
Total commercial real estate | 2,090 | 711 | 2,915 | 1,944 | - | 189 | 20,944 | - | 28,793 |
Consumer | |||||||||
Consumer mortgages | 11,093 | 2,942 | 2,975 | 11,157 | 1,120 | 2,597 | 8,481 | 2,027 | 42,392 |
Home equity | 163 | 52 | 298 | 388 | 87 | 131 | 294 | - | 1,413 |
Credit cards | - | - | - | - | - | - | - | 832 | 832 |
Total consumer | 11,256 | 2,994 | 3,273 | 11,545 | 1,207 | 2,728 | 8,775 | 2,859 | 44,637 |
All other | 43 | 1 | 45 | 42 | - | 3 | 234 | 22 | 390 |
Total loans | $ 14,184 | $ 5,707 | $ 7,782 | $ 15,884 | $ 2,535 | $ 3,342 | $ 48,850 | $ 3,037 | $ 101,321 |
NON-PERFORMING LOANS AND LEASES | |||||||||
AS A PERCENTAGE OF OUTSTANDING: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | |||||||||
Commercial and industrial-owner occupied | |||||||||
Total commercial and industrial | |||||||||
Commercial real estate | |||||||||
Agricultural | |||||||||
Construction, acquisition and development | |||||||||
Commercial real estate | |||||||||
Total commercial real estate | |||||||||
Consumer | |||||||||
Consumer mortgages | |||||||||
Home equity | |||||||||
Credit cards | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||
Total consumer | |||||||||
All other | |||||||||
Total loans | |||||||||
BancorpSouth Bank | ||||||||||
Noninterest Revenue and Expense | ||||||||||
(Dollars in thousands) | ||||||||||
(Unaudited) | ||||||||||
Quarter Ended | ||||||||||
Mar-21 | Dec-20 | Sep-20 | Jun-20 | Mar-20 | ||||||
NONINTEREST REVENUE: | ||||||||||
Mortgage banking excl. MSR and MSR Hedge market value adj | $ 17,929 | $ 19,917 | $ 26,667 | $ 31,930 | $ 20,553 | |||||
MSR and MSR Hedge market value adjustment | 7,381 | 212 | 430 | (2,373) | (11,083) | |||||
Credit card, debit card and merchant fees | 9,659 | 10,053 | 9,938 | 9,080 | 9,176 | |||||
Deposit service charges | 8,477 | 9,708 | 8,892 | 7,647 | 11,682 | |||||
Securities gains (losses), net | 82 | 63 | 18 | 62 | (85) | |||||
Insurance commissions | 30,667 | 29,815 | 32,750 | 33,118 | 29,603 | |||||
Trust income | 5,129 | 4,046 | 3,902 | 4,064 | 4,013 | |||||
Annuity fees | 51 | 53 | 53 | 54 | 55 | |||||
Brokerage commissions and fees | 3,285 | 2,652 | 2,516 | 2,303 | 2,502 | |||||
Bank-owned life insurance | 2,020 | 2,425 | 1,902 | 1,855 | 1,999 | |||||
Other miscellaneous income | 3,256 | (118) | 2,856 | 3,518 | 8,081 | |||||
Total noninterest revenue | $ 87,936 | $ 78,826 | $ 89,924 | $ 91,258 | $ 76,496 | |||||
NONINTEREST EXPENSE: | ||||||||||
Salaries and employee benefits | $ 101,060 | $ 97,215 | $ 104,219 | $ 108,103 | $ 108,272 | |||||
Occupancy, net of rental income | 12,814 | 13,004 | 13,053 | 12,890 | 12,708 | |||||
Equipment | 4,564 | 4,756 | 4,519 | 4,762 | 4,649 | |||||
Deposit insurance assessments | 1,455 | 1,696 | 1,522 | 1,962 | 1,546 | |||||
Pension settlement expense | - | 5,846 | - | - | - | |||||
Advertising | 1,004 | 899 | 826 | 918 | 1,099 | |||||
Foreclosed property expense | 1,021 | 2,122 | (278) | 1,306 | 924 | |||||
Telecommunications | 1,398 | 1,448 | 1,462 | 1,512 | 1,461 | |||||
Public relations | 741 | 897 | 1,130 | 459 | 680 | |||||
Data processing | 10,424 | 9,980 | 9,477 | 9,693 | 9,646 | |||||
Computer software | 5,113 | 5,301 | 4,779 | 4,979 | 4,315 | |||||
Amortization of intangibles | 2,318 | 2,499 | 2,357 | 2,355 | 2,394 | |||||
Legal | 1,166 | 1,474 | (316) | 1,375 | 898 | |||||
Merger expense | 1,649 | 212 | 129 | 510 | 4,494 | |||||
Postage and shipping | 1,547 | 1,418 | 1,199 | 1,198 | 1,441 | |||||
Other miscellaneous expense | 9,549 | 19,144 | 11,427 | 10,482 | 13,479 | |||||
Total noninterest expense | $ 155,823 | $ 167,911 | $ 155,505 | $ 162,504 | $ 168,006 | |||||
INSURANCE COMMISSIONS: | ||||||||||
Property and casualty commissions | $ 21,949 | $ 21,304 | $ 24,060 | $ 23,644 | $ 21,246 | |||||
Life and health commissions | 6,494 | 5,915 | 6,072 | 6,771 | 6,175 | |||||
Risk management income | 613 | 829 | 609 | 540 | 532 | |||||
Other | 1,611 | 1,767 | 2,009 | 2,163 | 1,650 | |||||
Total insurance commissions | $ 30,667 | $ 29,815 | $ 32,750 | $ 33,118 | $ 29,603 | |||||
BancorpSouth Bank | |||||
Selected Additional Information | |||||
(Dollars in thousands) | |||||
(Unaudited) | |||||
Quarter Ended | |||||
Mar-21 | Dec-20 | Sep-20 | Jun-20 | Mar-20 | |
MORTGAGE SERVICING RIGHTS: | |||||
Fair value, beginning of period | $ 47,571 | $ 44,944 | $ 40,821 | $ 42,243 | $ 57,109 |
Additions to mortgage servicing rights: | |||||
Originations of servicing assets | 5,588 | 6,608 | 7,041 | 4,297 | 3,079 |
Changes in fair value: | |||||
Due to payoffs/paydowns | (3,273) | (3,898) | (3,198) | (3,144) | (2,506) |
Due to change in valuation inputs or | |||||
assumptions used in the valuation model | 10,446 | (83) | 280 | (2,575) | (15,438) |
Other changes in fair value | - | - | - | - | (1) |
Fair value, end of period | $ 60,332 | $ 47,571 | $ 44,944 | $ 40,821 | $ 42,243 |
MORTGAGE BANKING REVENUE: | |||||
Production revenue: | |||||
Origination | $ 15,955 | $ 18,561 | $ 23,632 | $ 30,194 | $ 17,906 |
Servicing | 5,247 | 5,254 | 6,233 | 4,880 | 5,153 |
Payoffs/Paydowns | (3,273) | (3,898) | (3,198) | (3,144) | (2,506) |
Total production revenue | 17,929 | 19,917 | 26,667 | 31,930 | 20,553 |
Market value adjustment on MSR | 10,446 | (83) | 280 | (2,575) | (15,438) |
Market value adjustment on MSR Hedge | (3,065) | 295 | 150 | 202 | 4,355 |
Total mortgage banking revenue | $ 25,310 | $ 20,129 | $ 27,097 | $ 29,557 | $ 9,470 |
Mortgage loans serviced | $ 7,330,293 | $ 7,218,090 | $ 6,999,383 | ||
MSR/mtg loans serviced | |||||
AVAILABLE-FOR-SALE SECURITIES, at fair value | |||||
U.S. Government agencies | 2,642,646 | 2,871,408 | $ 3,116,458 | $ 3,532,905 | |
U.S. Government agency issued residential | |||||
mortgage-back securities | 3,438,246 | 2,421,409 | 1,625,325 | 699,864 | 132,902 |
U.S. Government agency issued commercial | |||||
mortgage-back securities | 1,414,345 | 806,206 | 758,116 | 759,980 | 595,885 |
Obligations of states and political subdivisions | 126,589 | 113,953 | 141,896 | 163,121 | 206,648 |
Corporate bonds | 18,442 | 18,030 | 17,990 | 2,000 | - |
Total available-for-sale securities | $ 6,231,006 | $ 5,659,785 | $ 4,468,340 | ||
BancorpSouth Bank | |||||||||||
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 available to common shareholders, net operating income-excluding MSR, net operating income available to common shareholders-excluding MSR, pre-tax pre-provision net revenue, total operating expense, tangible shareholders' equity to tangible assets, tangible shareholders' equity to tangible assets-excluding PPP loans, tangible common shareholders' equity to tangible assets, tangible common shareholders' equity to tangible assets-excluding PPP loans, return on average tangible equity, return on average tangible common equity, operating return on average tangible equity-excluding MSR, operating return on average tangible common equity-excluding MSR, operating return on average assets-excluding MSR, operating return on average shareholders' equity-excluding MSR, operating return on average common shareholders' equity-excluding MSR, pre-tax pre-provision net revenue to total average assets, average tangible book value per common share, operating earnings per common share, operating earnings per common 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, Net Operating Income Available to Common Shareholders, Net Operating Income-Excluding MSR, and Net Operating Income Available to Common Shareholders-excluding MSR to Net Income: |
Quarter ended | |||||||||||
3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | |||||||
Net income | $ 81,555 | $ 68,805 | $ 73,825 | $ 61,160 | $ 24,261 | ||||||
Plus: | Merger expense, net of tax | 1,238 | 159 | 97 | 383 | 3,372 | |||||
Initial provision for acquired loans, | |||||||||||
net of tax | - | - | - | - | 751 | ||||||
Pension settlement expense, net of tax | - | 4,388 | - | - | - | ||||||
Less: | Security gains(losses), net of tax | 62 | 48 | 13 | 47 | (64) | |||||
Net operating income | $ 82,731 | $ 73,304 | $ 73,909 | $ 61,496 | $ 28,448 | ||||||
Less: | Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | |||||
Net operating income available to | |||||||||||
common shareholders | $ 80,359 | $ 70,932 | $ 71,537 | $ 59,124 | $ 26,076 | ||||||
Net operating income | $ 82,731 | $ 73,304 | $ 73,909 | $ 61,496 | $ 28,448 | ||||||
Less: | MSR market value adjustment, net of tax | 5,539 | 159 | 323 | (1,781) | (8,318) | |||||
Net operating income-excluding MSR | $ 77,192 | $ 73,145 | $ 73,586 | $ 63,277 | $ 36,766 | ||||||
Less: | Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | 2,372 | |||||
Net operating income available to common | |||||||||||
shareholders-excluding MSR | $ 74,820 | $ 70,773 | $ 71,214 | $ 60,905 | $ 34,394 | ||||||
Reconciliation of Net Income to Pre-Tax Pre-Provision Net Revenue | |||||||||||
Net income | $ 81,555 | $ 68,805 | $ 73,825 | $ 61,160 | $ 24,261 | ||||||
Plus: | Provision for credit losses | - | 5,000 | 15,000 | 20,000 | 46,000 | |||||
Merger expense | 1,649 | 212 | 129 | 510 | 4,494 | ||||||
Pension settlement expense | - | 5,846 | - | - | - | ||||||
Income tax expense | 23,347 | 14,046 | 21,525 | 18,164 | 5,759 | ||||||
Less: | Security gains(losses) | 82 | 63 | 18 | 62 | (85) | |||||
MSR market value adjustment | 7,381 | 212 | 430 | (2,373) | (11,083) | ||||||
Pre-tax pre-provision net revenue | $ 99,088 | $ 93,634 | $ 110,031 | $ 102,145 | $ 91,682 | ||||||
Reconciliation of Total Operating Expense to Total Noninterest Expense: | |||||||||||
Total noninterest expense | $ 155,823 | $ 167,911 | $ 155,505 | $ 162,504 | $ 168,006 | ||||||
Less: | Merger expense | 1,649 | 212 | 129 | 510 | 4,494 | |||||
Pension settlement expense | - | 5,846 | - | - | - | ||||||
Total operating expense | $ 154,174 | $ 161,853 | $ 155,376 | $ 161,994 | $ 163,512 | ||||||
BancorpSouth Bank | |||||||||||
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 | |||||||||||
3/31/2021 | 12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | |||||||
Tangible assets | |||||||||||
Total assets | $ 24,081,194 | $ 23,555,422 | $ 21,032,524 | ||||||||
Less: | Goodwill | 851,612 | 851,612 | 847,531 | 847,984 | 848,242 | |||||
Other identifiable intangible assets | 53,581 | 55,899 | 54,757 | 56,989 | 59,345 | ||||||
Total tangible assets | $ 23,173,683 | $ 22,653,134 | $ 20,124,937 | ||||||||
Less: | PPP loans | 1,146,000 | 975,421 | 1,212,246 | 1,192,715 | - | |||||
Total tangible assets-excluding PPP loans | $ 22,198,262 | $ 21,440,888 | $ 20,124,937 | ||||||||
PERIOD END BALANCES: | |||||||||||
Tangible shareholders' equity | |||||||||||
Total shareholders' equity | $ 2,825,198 | $ 2,822,477 | $ 2,782,539 | $ 2,732,687 | $ 2,681,904 | ||||||
Less: | Goodwill | 851,612 | 851,612 | 847,531 | 847,984 | 848,242 | |||||
Other identifiable intangible assets | 53,581 | 55,899 | 54,757 | 56,989 | 59,345 | ||||||
Total tangible shareholders' equity | $ 1,920,005 | $ 1,914,966 | $ 1,880,251 | $ 1,827,714 | $ 1,774,317 | ||||||
Less: | Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 166,993 | |||||
Total tangible common shareholders' equity | $ 1,753,012 | $ 1,747,973 | $ 1,713,258 | $ 1,660,721 | $ 1,607,324 | ||||||
AVERAGE BALANCES: | |||||||||||
Tangible shareholders' equity | |||||||||||
Total shareholders' equity | $ 2,813,001 | $ 2,774,589 | $ 2,729,870 | $ 2,738,434 | $ 2,658,699 | ||||||
Less: | Goodwill | 851,612 | 852,472 | 847,744 | 848,160 | 844,635 | |||||
Other identifiable intangible assets | 54,876 | 54,858 | 56,045 | 58,280 | 58,805 | ||||||
Total tangible shareholders' equity | $ 1,906,513 | $ 1,867,259 | $ 1,826,081 | $ 1,831,994 | $ 1,755,259 | ||||||
Less: | Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 167,021 | |||||
Total tangible common shareholders' equity | $ 1,739,520 | $ 1,700,266 | $ 1,659,088 | $ 1,665,001 | $ 1,588,238 | ||||||
Total average assets | $ 23,660,503 | $ 23,318,877 | $ 21,189,637 | ||||||||
Total shares of common stock outstanding | 102,624,818 | 102,561,480 | 102,558,459 | 102,566,301 | 102,632,484 | ||||||
Average shares outstanding-diluted | 102,711,584 | 102,817,409 | 102,839,749 | 102,827,225 | 104,733,897 | ||||||
Tangible shareholders' equity to tangible assets (1) | |||||||||||
Tangible shareholders' equity to tangible assets-excluding PPP loans (2) | |||||||||||
Tangible common shareholders' equity to tangible assets (3) | |||||||||||
Tangible common shareholders' equity to tangible assets-excluding PPP loans (4) | |||||||||||
Return on average tangible equity (5) | |||||||||||
Return on average tangible common equity (6) | |||||||||||
Operating return on average tangible equity-excluding MSR (7) | |||||||||||
Operating return on average tangible common equity-excluding MSR (8) | |||||||||||
Operating return on average assets-excluding MSR (9) | |||||||||||
Operating return on average shareholders' equity-excluding MSR (10) | |||||||||||
Operating return on average common shareholders' equity-excluding MSR (11) | |||||||||||
Pre-tax pre-provision net revenue to total average assets (12) | |||||||||||
Tangible book value per common share (13) | $ 17.08 | $ 17.04 | $ 16.71 | $ 16.19 | $ 15.66 | ||||||
Operating earnings per common share (14) | $ 0.78 | $ 0.69 | $ 0.70 | $ 0.57 | $ 0.25 | ||||||
Operating earnings per common share-excluding MSR (15) | $ 0.73 | $ 0.69 | $ 0.69 | $ 0.59 | $ 0.33 | ||||||
(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) | Tangible shareholders' equity to tangible assets-excluding PPP loans 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, other identifiable intangible assets, and PPP loans. | ||||||||||
(3) | Tangible common shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less preferred stock, goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill and other identifiable intangible assets. | ||||||||||
(4) | Tangible common shareholders' equity to tangible assets-excluding PPP loans is defined by the Company as total shareholders' equity less preferred stock, goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill, other identifiable intangible assets, and PPP loans. | ||||||||||
(5) | Return on average tangible equity is defined by the Company as annualized net income divided by average tangible shareholders' equity. | ||||||||||
(6) | Return on average tangible common equity is defined by the Company as annualized net income available to common shareholders divided by average tangible common shareholders' equity. | ||||||||||
(7) | Operating return on average tangible equity-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by average tangible shareholders' equity. | ||||||||||
(8) | Operating return on average tangible common equity-excluding MSR is defined by the Company as annualized net operating income available to common shareholders-excluding MSR divided by average tangible common shareholders' equity. | ||||||||||
(9) | Operating return on average assets-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by total average assets. | ||||||||||
(10) | 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. | ||||||||||
(11) | Operating return on average common shareholders' equity-excluding MSR is defined by the Company as annualized net operating income available to common shareholders-excluding MSR divided by average common shareholders' equity. | ||||||||||
(12) | Pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized pre-tax pre-provision net revenue divided by total average assets adjusted for other non-operating items included in the definition and calculation of net operating income-excluding MSR. | ||||||||||
(13) | Tangible book value per common share is defined by the Company as tangible common shareholders' equity divided by total shares of common stock outstanding. | ||||||||||
(14) | Operating earnings per common share is defined by the Company as net operating income available to common shareholders divided by average common shares outstanding-diluted. | ||||||||||
(15) | Operating earnings per common share-excluding MSR is defined by the Company as net operating income available to common shareholders-excluding MSR divided by average common 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. | |||||||||||
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SOURCE BancorpSouth Bank
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