BancorpSouth Announces Fourth Quarter 2020 and Annual Financial Results
BancorpSouth Bank (BXS) reported strong financial results for 2020, achieving a net income of $218.6 million, or $2.12 per diluted share, despite challenges posed by the COVID-19 pandemic. The bank recorded a provision for credit losses of $86 million and a significant increase in the allowance for credit losses to $244.4 million. Pre-tax pre-provision net revenue reached a record $397.5 million. The bank also saw a growth of 19% in organic deposits and completed a merger with Texas First Bancshares, contributing $396.9 million in assets. Upcoming mergers with National United and FNS Bancshares are expected to add approximately $1.5 billion in assets.
- Achieved net income of $218.6 million for 2020, a decrease from $234.3 million in 2019.
- Reported record pre-tax pre-provision net revenue of $397.5 million, up 20.7% year-over-year.
- Generated total organic deposit growth of approximately $3.2 billion, or 19% for the year.
- Completed the merger with Texas First Bancshares, adding $396.9 million in assets.
- Announced definitive merger agreements with National United and FNS Bancshares, expected to add approximately $1.5 billion in assets.
- Recorded a provision for credit losses of $86 million due to economic deterioration from the COVID-19 pandemic.
- Net income for 2020 decreased to $218.6 million from $234.3 million in 2019.
- Net operating income available to common shareholders, excluding MSR, fell to $237.3 million, down from $255.4 million in 2019.
- Total non-performing assets increased to $132.6 million, or 0.55% of total assets, at year-end 2020.
TUPELO, Miss., Jan. 25, 2021 /PRNewswire/ -- BancorpSouth Bank (NYSE: BXS) (the "Company") today announced financial results for the quarter and year ended December 31, 2020.
Annual highlights for 2020 included:
- Achieved net income available to common shareholders of
$218.6 million , or$2.12 per diluted common share, and net operating income available to common shareholders – excluding mortgage servicing rights ("MSR") – of$237.3 million , or$2.30 per diluted common share. - Recorded provision for credit losses of
$86.0 million associated primarily with economic deterioration associated with the COVID-19 pandemic while net charge-offs totaled 0.18 percent of average loans and leases, 0.14 percent of which was related to previously acquired loans; adopted Accounting Standards Update 2016-13 "Financial Instruments – Credit Losses" ("CECL") effective January 1, 2020 which, combined with the provision, contributed to an increase of$125.4 million in the allowance for credit losses. - Reported record annual pre-tax pre-provision net revenue ("PPNR") of
$397.5 million , or 1.75 percent of average assets; represents an increase of 20.7 percent from$329.2 million , or 1.73 percent of average assets, for 2019. - Generated total organic deposit and customer repo growth of approximately
$3.2 billion , or 19 percent for the year. - Originated over 15,000 loans totaling
$1.2 billion under the Paycheck Protection Program ("PPP"); processed forgiveness applications on approximately 6,900 loans totaling$608.9 million and received forgiveness funds from the U.S. Small Business Administration ("SBA") on just over 4,000 loans totaling$262.5 million . - Reported record annual mortgage production volume and mortgage revenue for the year – production volume of
$3.2 billion contributed to production and servicing revenue totaling$99.1 million . - Improvement in cost structure; operating efficiency ratio – excluding MSR – improved to 61.6 percent compared to 64.9 percent for 2019.
- Completed merger with Texas First Bancshares, Inc. which added
$396.9 million in assets to the Company's Central Texas presence. - Repurchased 3,300,000 shares of outstanding common stock at a weighted average price of
$26.42 per share.
Highlights for the fourth quarter of 2020 included:
- Achieved quarterly net income available to common shareholders of
$66.4 million , or$0.65 per diluted common share, and net operating income available to common shareholders – excluding MSR – of$70.8 million , or$0.69 per diluted common share. - Recorded provision for credit losses of
$5.0 million ; total non-performing assets declined15.7% while past dues, loan deferrals, and modifications remained relatively stable. - Generated
$93.6 million in PPNR, or 1.57 percent of average assets on an annualized basis; PPNR was impacted by seasonal revenue factors as well as certain other elevated one-time or non-recurring expense items. - Generated total deposit and customer repo growth of
$459.7 million for the quarter, or 9.1 percent on an annualized basis. - Record fourth quarter mortgage production volume of
$845.9 million contributed to mortgage production and servicing revenue of$19.9 million . - Recorded a charge of
$5.8 million in accordance with Accounting Standards Codification ("ASC") 715 "Compensation – Retirement Benefits" to reflect the settlement accounting impact of the lump sum payments associated with an elevated number of retirements that occurred in the fourth quarter of 2020. - Maintained strong regulatory capital metrics; estimated total risk-based capital of 14.24 percent at December 31, 2020 compared to 14.17 percent at December 31, 2019.
- Announced the signing of a definitive merger agreement with National United Bancshares, Inc., the parent company of National United, which is expected to add approximately
$750 million in assets to the Company's Central Texas presence. - On January 13, 2021, announced the signing of a definitive merger agreement with FNS Bancshares, Inc., the parent company of FNB Bank, which is expected to add approximately
$790 million in assets across Alabama, Tennessee, and Georgia.
"As we look at our financial results for 2020, the COVID-19 pandemic certainly created a challenging year for our industry as a whole," remarked Dan Rollins, Chairman and Chief Executive Officer. "I am extremely proud of our team's ability to navigate this difficult environment while continuing to improve our core operating results. While protecting the health of our teammates and customers was our first priority, we achieved some unprecedented milestones in several areas of our Company. Our mortgage team generated record production of
"As we look specifically at our fourth quarter performance, we had another great quarter of deposit and customer repo growth, which totaled
Earnings Summary
The Company reported net income available to common shareholders of
Additionally, the Company reported net income available to common shareholders of
The Company reported pre-tax pre-provision net revenue of
Net Interest Revenue
Net interest revenue was
The
Balance Sheet Activity
Loans and leases, net of unearned income, decreased
Provision for Credit Losses and Allowance for Credit Losses
Earnings for the fourth quarter of 2020 reflect a provision for credit losses of
The Company adopted CECL effective January 1, 2020. The increase in the allowance for credit losses resulting from this implementation was
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 fourth quarter of 2020 was
Noninterest expense for the fourth quarter of 2020 included certain items that were either non-operating or non-routine in nature as defined by the Company. The Company recorded a charge of
Capital Management
The Company's ratio of shareholders' equity to assets was 11.72 percent at December 31, 2020, compared with 12.75 percent at December 31, 2019 and 11.81 percent at September 30, 2020. The ratio of tangible common shareholders' equity to tangible assets was 7.54 percent at December 31, 2020, compared with 8.09 percent at December 31, 2019 and 7.56 percent at September 30, 2020. The
During the fourth quarter of 2020, the Company did not repurchase any shares of its common stock pursuant to its share repurchase program. On December 9, 2020, the Company announced a new share repurchase program, pursuant to which the Board of Directors has authorized the repurchase of up to an aggregate of 6 million shares, which commenced on January 4, 2021 and will expire on December 31, 2021.
Estimated regulatory capital ratios at December 31, 2020 were calculated in accordance with the Basel III capital framework as well as the interagency interim final rule published on March 31, 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 December 31, 2020, with Tier 1 risk-based capital of 11.70 percent and total risk-based capital of 14.24 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification.
Summary
Rollins concluded, "I am proud of the accomplishments that our teammates achieved over the course of the year in unprecedented circumstances. We reported record deposit growth and mortgage origination volume, while our bankers cultivated current relationships and built new ones through the government stimulus programs as well as other opportunities to assist customers during this time. As a company, we have taken other actions to drive continued efficiency improvement including our efforts to improve our branch structure and employee headcount as well as various other initiatives to enhance our technology offerings and customer experience. While we expect the industry to continue to experience revenue headwinds as we enter the New Year, we are glad 2020 is behind us. We look forward to the opportunity to continue to grow our Company and improve shareholder value."
TRANSACTIONS
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 December 31, 2020, 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 December 31, 2020, National United collectively reported total assets of
Texas First Bancshares, Inc.
On January 1, 2020, the Company completed the merger with Texas First Bancshares, Inc., the parent company of Texas First State Bank, (collectively referred to as "Texas First"), pursuant to which Texas First was merged with and into the Company. Texas First operated 6 full-service banking offices in the Waco, Texas and Killeen-Temple, Texas metropolitan statistical areas ("MSA"). As of January 1, 2020, Texas First 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 26 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 the increases in its provision and allowance for credit losses and the discussion regarding negative pressure to its net interest revenue and net interest margin. 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 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 fourth quarter 2020 financial results on January 26, 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 our business; our: 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; mortgage production volume; 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 and natural disasters; adoption and use of critical accounting policies; adoption and implementation of new accounting standards and their effect on our financial results and our financial reporting; utilization of non-GAAP financial metrics; declaration and payment of dividends; ability to pay dividends or coupons on our
Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, our 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 our 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 our 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 our 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 our 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, including any changes that result from the recent U.S. elections; FDIC special assessments or changes to regular assessments; 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 our 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, our operational or security systems or infrastructure, or those of third parties with whom we do 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 us or our 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 impact of actions taken to contain or treat COVID-19 on us, our employees, our customers, the global economy and the financial markets; international or political instability; impairment of our 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; and other factors as detailed from time to time in our press and news releases, periodic and current reports and other filings we file 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 our periodic and current reports filed with the FDIC, including those factors included in our Annual Report on Form 10-K for the year ended December 31, 2019 under the heading "Item 1A. Risk Factors," in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K.
Although we believe 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 our 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 we do 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 us to predict their occurrence or how they will affect us. All written or oral forward-looking statements attributable to us 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 | Year Ended | Year Ended | |
12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 12/31/2020 | 12/31/2019 | |
Earnings Summary: | |||||||
Interest revenue | $ 199,287 | $ 200,670 | $ 197,472 | $ 202,064 | $ 203,812 | $ 799,493 | $ 775,012 |
Interest expense | 22,351 | 24,739 | 26,902 | 34,534 | 33,038 | 108,526 | 125,068 |
Net interest revenue | 176,936 | 175,931 | 170,570 | 167,530 | 170,774 | 690,967 | 649,944 |
Provision for credit losses | 5,000 | 15,000 | 20,000 | 46,000 | - | 86,000 | 1,500 |
Net interest revenue, after provision | |||||||
for credit losses | 171,936 | 160,931 | 150,570 | 121,530 | 170,774 | 604,967 | 648,444 |
Noninterest revenue | 78,826 | 89,924 | 91,258 | 76,496 | 74,697 | 336,504 | 280,681 |
Noninterest expense | 167,911 | 155,505 | 162,504 | 168,006 | 162,351 | 653,926 | 629,607 |
Income before income taxes | 82,851 | 95,350 | 79,324 | 30,020 | 83,120 | 287,545 | 299,518 |
Income tax expense | 14,046 | 21,525 | 18,164 | 5,759 | 17,271 | 59,494 | 65,257 |
Net income | $ 68,805 | $ 73,825 | $ 61,160 | $ 24,261 | $ 65,849 | $ 228,051 | $ 234,261 |
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | - | 9,488 | - |
Net income available to common shareholders | $ 66,433 | $ 71,453 | $ 58,788 | $ 21,889 | $ 65,849 | $ 218,563 | $ 234,261 |
Balance Sheet - Period End Balances | |||||||
Total assets | $ 24,081,194 | $ 23,555,422 | $ 23,236,176 | $ 21,032,524 | $ 21,052,576 | $ 24,081,194 | $ 21,052,576 |
Total earning assets | 21,792,725 | 21,340,371 | 21,119,073 | 18,939,750 | 18,891,021 | 21,792,725 | 18,891,021 |
Total securities | 6,231,006 | 5,659,785 | 4,973,171 | 4,468,340 | 4,481,974 | 6,231,006 | 4,481,974 |
Loans and leases, net of unearned income | 15,022,479 | 15,327,735 | 15,427,421 | 14,224,645 | 14,089,683 | 15,022,479 | 14,089,683 |
Allowance for credit losses | 244,422 | 250,624 | 237,025 | 218,199 | 119,066 | 244,422 | 119,066 |
Net book value of acquired loans (included in loans and leases above) | 1,160,267 | 1,320,671 | 1,510,008 | 1,661,329 | 1,628,265 | 1,160,267 | 1,628,265 |
Paycheck protection program (PPP) loans (included in loans and leases above) | 975,421 | 1,212,246 | 1,192,715 | - | - | 975,421 | - |
Remaining loan mark on acquired loans | 13,886 | 16,198 | 19,977 | 22,286 | 46,240 | 13,886 | 46,240 |
Total deposits | 19,846,441 | 19,412,979 | 19,179,486 | 16,887,916 | 16,410,699 | 19,846,441 | 16,410,699 |
Total deposits and securities sold under agreement to repurchase | 20,484,156 | 20,024,434 | 19,849,502 | 17,426,878 | 16,924,121 | 20,484,156 | 16,924,121 |
Long-term debt | 4,402 | 4,508 | 4,615 | 4,721 | 5,053 | 4,402 | 5,053 |
Junior subordinated debt securities | 297,250 | 297,074 | 296,898 | 296,723 | 296,547 | 297,250 | 296,547 |
Total shareholders' equity | 2,822,477 | 2,782,539 | 2,732,687 | 2,681,904 | 2,685,017 | 2,822,477 | 2,685,017 |
Common shareholders' equity | 2,655,484 | 2,615,546 | 2,565,694 | 2,514,911 | 2,517,996 | 2,655,484 | 2,517,996 |
Balance Sheet - Average Balances | |||||||
Total assets | $ 23,660,503 | $ 23,318,877 | $ 22,707,686 | $ 21,189,637 | $ 20,243,023 | $ 22,723,386 | $ 19,027,644 |
Total earning assets | 21,497,938 | 21,241,896 | 20,594,889 | 19,113,449 | 18,125,676 | 20,616,184 | 17,036,618 |
Total securities | 5,820,425 | 5,309,982 | 4,437,614 | 4,461,298 | 3,555,014 | 5,010,378 | 2,934,654 |
Loans and leases, net of unearned income | 15,219,402 | 15,369,684 | 15,114,732 | 14,226,788 | 14,061,118 | 14,984,356 | 13,606,951 |
PPP loans (included in loans and leases above) | 1,139,959 | 1,207,097 | 975,029 | - | - | 830,467 | - |
Total deposits | 19,600,863 | 19,258,930 | 18,454,472 | 16,905,229 | 16,218,715 | 18,559,655 | 15,319,130 |
Total deposits and securities sold under agreement to repurchase | 20,272,881 | 19,940,330 | 19,098,599 | 17,446,936 | 16,748,932 | 19,194,697 | 15,814,512 |
Long-term debt | 4,488 | 4,592 | 4,699 | 4,800 | 5,138 | 4,644 | 5,415 |
Junior subordinated debt securities | 297,145 | 296,969 | 296,793 | 296,617 | 135,535 | 296,882 | 34,162 |
Total shareholders' equity | 2,774,589 | 2,729,870 | 2,738,434 | 2,658,699 | 2,572,750 | 2,725,545 | 2,366,745 |
Common shareholders' equity | 2,607,596 | 2,562,877 | 2,571,441 | 2,491,678 | 2,498,033 | 2,558,545 | 2,347,913 |
Nonperforming Assets: | |||||||
Non-accrual loans and leases | $ 96,378 | $ 122,108 | $ 126,753 | $ 110,074 | $ 78,796 | $ 96,378 | $ 78,796 |
Loans and leases 90+ days past due, still accruing | 14,320 | 17,641 | 9,877 | 7,272 | 17,531 | 14,320 | 17,531 |
Restructured loans and leases, still accruing | 10,475 | 11,154 | 11,575 | 11,284 | 15,184 | 10,475 | 15,184 |
Non-performing loans (NPLs) | 121,173 | 150,903 | 148,205 | 128,630 | 111,511 | 121,173 | 111,511 |
Other real estate owned | 11,395 | 6,397 | 7,164 | 9,200 | 6,746 | 11,395 | 6,746 |
Non-performing assets (NPAs) | $ 132,568 | $ 157,300 | $ 155,369 | $ 137,830 | $ 118,257 | $ 132,568 | $ 118,257 |
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) | 12.88 | 9.18 | 11.15 | 9.46 | 13.60 | 12.88 | 13.60 |
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 | 4,596 | 4,691 | 4,742 | 4,737 | 4,693 | 4,596 | 4,693 |
*Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 26 and 27. | |||||||
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 | $ 0.65 | $ 0.70 | $ 0.57 | $ 0.21 | $ 0.63 | $ 2.12 | $ 2.31 |
Diluted earnings per share | 0.65 | 0.69 | 0.57 | 0.21 | 0.63 | 2.12 | 2.30 |
Operating earnings per share* | 0.69 | 0.70 | 0.57 | 0.25 | 0.67 | 2.20 | 2.40 |
Operating earnings per share- excluding MSR* | 0.69 | 0.69 | 0.59 | 0.33 | 0.65 | 2.30 | 2.51 |
Cash dividends per share | 0.190 | 0.185 | 0.185 | 0.185 | 0.185 | 0.745 | 0.710 |
Book value per share | 25.89 | 25.50 | 25.01 | 24.50 | 24.09 | 25.89 | 24.09 |
Tangible book value per share* | 17.04 | 16.71 | 16.19 | 15.66 | 15.62 | 17.04 | 15.62 |
Market value per share (last) | 27.44 | 19.38 | 22.74 | 18.92 | 31.41 | 27.44 | 31.41 |
Market value per share (high) | 28.54 | 24.29 | 25.93 | 31.61 | 32.97 | 31.61 | 33.45 |
Market value per share (low) | 18.77 | 18.11 | 17.21 | 17.24 | 28.13 | 17.21 | 25.76 |
Market value per share (avg) | 25.26 | 21.36 | 21.21 | 26.43 | 30.88 | 23.55 | 29.53 |
Dividend payout ratio | |||||||
Total shares outstanding | 102,561,480 | 102,558,459 | 102,566,301 | 102,632,484 | 104,522,804 | 102,561,480 | 104,522,804 |
Average shares outstanding - basic | 102,569,547 | 102,564,466 | 102,603,525 | 104,354,328 | 104,739,906 | 103,022,966 | 101,506,583 |
Average shares outstanding - diluted | 102,817,409 | 102,839,749 | 102,827,225 | 104,733,897 | 105,144,032 | 103,304,570 | 101,810,640 |
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 | N/A | 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 | $ 709 | $ 618 | $ 725 | $ 714 | $ 800 | $ 2,766 | $ 3,782 |
*Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 26 and 27. | |||||||
BancorpSouth Bank | |||||
Consolidated Balance Sheets | |||||
(Unaudited) | |||||
Dec-20 | Sep-20 | Jun-20 | Mar-20 | Dec-19 | |
(Dollars in thousands) | |||||
Assets | |||||
Cash and due from banks | $ 284,095 | $ 306,164 | $ 240,354 | $ 253,495 | $ 261,773 |
Interest bearing deposits with other banks | |||||
and Federal funds sold | 133,273 | 39,782 | 318,615 | 29,490 | 71,233 |
Available-for-sale securities, at fair value | 6,231,006 | 5,659,785 | 4,973,171 | 4,468,340 | 4,481,974 |
Loans and leases* | 15,039,239 | 15,344,006 | 15,444,794 | 14,241,912 | 14,107,743 |
Less: Unearned income | 16,760 | 16,271 | 17,373 | 17,267 | 18,060 |
Allowance for credit losses | 244,422 | 250,624 | 237,025 | 218,199 | 119,066 |
Net loans and leases | 14,778,057 | 15,077,111 | 15,190,396 | 14,006,446 | 13,970,617 |
Loans held for sale | 397,076 | 304,215 | 391,051 | 194,321 | 210,361 |
Premises and equipment, net | 508,147 | 508,149 | 504,748 | 497,669 | 480,901 |
Accrued interest receivable | 106,318 | 110,185 | 101,321 | 70,463 | 65,173 |
Goodwill | 851,612 | 847,531 | 847,984 | 848,242 | 825,679 |
Other identifiable intangibles | 55,899 | 54,757 | 56,989 | 59,345 | 60,008 |
Bank owned life insurance | 333,264 | 331,799 | 329,167 | 327,312 | 326,417 |
Other real estate owned | 11,395 | 6,397 | 7,164 | 9,200 | 6,746 |
Other assets | 391,052 | 309,547 | 275,216 | 268,201 | 291,694 |
Total Assets | $ 24,081,194 | $ 23,555,422 | $ 23,236,176 | $ 21,032,524 | $ 21,052,576 |
Liabilities | |||||
Deposits: | |||||
Demand: Noninterest bearing | $ 6,341,457 | $ 6,336,792 | $ 6,385,370 | $ 4,861,155 | $ 4,661,821 |
Interest bearing | 8,524,010 | 8,170,402 | 7,907,637 | 7,268,053 | 7,176,934 |
Savings | 2,452,059 | 2,325,980 | 2,234,853 | 2,013,343 | 1,937,985 |
Other time | 2,528,915 | 2,579,805 | 2,651,626 | 2,745,365 | 2,633,959 |
Total deposits | 19,846,441 | 19,412,979 | 19,179,486 | 16,887,916 | 16,410,699 |
Securities sold under agreement to repurchase | 637,715 | 611,455 | 670,016 | 538,962 | 513,422 |
Federal funds purchased | |||||
and other short-term borrowing | - | 95,217 | 220 | 290,224 | 725,000 |
Accrued interest payable | 10,885 | 15,286 | 13,476 | 17,482 | 15,124 |
Junior subordinated debt securities | 297,250 | 297,074 | 296,898 | 296,723 | 296,547 |
Long-term debt | 4,402 | 4,508 | 4,615 | 4,721 | 5,053 |
Other liabilities | 462,024 | 336,364 | 338,778 | 314,592 | 401,714 |
Total Liabilities | 21,258,717 | 20,772,883 | 20,503,489 | 18,350,620 | 18,367,559 |
Shareholders' Equity | |||||
Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 167,021 |
Common stock | 256,404 | 256,396 | 256,416 | 256,581 | 261,307 |
Capital surplus | 565,187 | 565,635 | 561,541 | 558,114 | 605,976 |
Accumulated other comprehensive income (loss) | 11,923 | 18,490 | 25,191 | 17,849 | (62,663) |
Retained earnings | 1,821,970 | 1,775,025 | 1,722,546 | 1,682,367 | 1,713,376 |
Total Shareholders' Equity | 2,822,477 | 2,782,539 | 2,732,687 | 2,681,904 | 2,685,017 |
Total Liabilities & Shareholders' Equity | $ 24,081,194 | $ 23,555,422 | $ 23,236,176 | $ 21,032,524 | $ 21,052,576 |
*Includes | |||||
BancorpSouth Bank | |||||
Consolidated Average Balance Sheets | |||||
(Unaudited) | |||||
Dec-20 | Sep-20 | Jun-20 | Mar-20 | Dec-19 | |
(Dollars in thousands) | |||||
Assets | |||||
Cash and due from banks | $ 247,799 | $ 232,421 | $ 229,334 | $ 246,860 | $ 244,444 |
Interest bearing deposits with other banks | |||||
and Federal funds sold | 171,650 | 257,057 | 760,789 | 239,766 | 300,495 |
Available-for-sale securities, at fair value | 5,820,425 | 5,309,982 | 4,437,614 | 4,461,298 | 3,555,014 |
Loans and leases* | 15,235,827 | 15,386,721 | 15,132,600 | 14,244,649 | 14,078,793 |
Less: Unearned income | 16,425 | 17,037 | 17,868 | 17,861 | 17,675 |
Allowance for credit losses | 247,049 | 236,536 | 217,508 | 193,796 | 117,668 |
Net loans and leases | 14,972,353 | 15,133,148 | 14,897,224 | 14,032,992 | 13,943,450 |
Loans held for sale | 277,600 | 296,352 | 261,377 | 147,798 | 173,649 |
Premises and equipment, net | 508,053 | 507,190 | 499,767 | 494,413 | 481,623 |
Accrued interest receivable | 105,513 | 104,435 | 137,456 | 64,010 | 60,678 |
Goodwill | 852,472 | 847,744 | 848,160 | 844,635 | 823,812 |
Other identifiable intangibles | 54,858 | 56,045 | 58,280 | 58,805 | 60,559 |
Bank owned life insurance | 332,543 | 330,642 | 328,037 | 326,808 | 328,567 |
Other real estate owned | 14,872 | 7,754 | 8,410 | 8,151 | 7,820 |
Other assets | 302,365 | 236,107 | 241,238 | 264,101 | 262,912 |
Total Assets | $ 23,660,503 | $ 23,318,877 | $ 22,707,686 | $ 21,189,637 | $ 20,243,023 |
Liabilities | |||||
Deposits: | |||||
Demand: Noninterest bearing | $ 6,391,006 | $ 6,340,942 | $ 5,942,570 | $ 4,717,202 | $ 4,803,104 |
Interest bearing | 8,268,528 | 8,022,755 | 7,674,479 | 7,466,674 | 6,872,921 |
Savings | 2,386,034 | 2,280,860 | 2,152,092 | 1,975,690 | 1,913,650 |
Other time | 2,555,295 | 2,614,373 | 2,685,331 | 2,745,663 | 2,629,040 |
Total deposits | 19,600,863 | 19,258,930 | 18,454,472 | 16,905,229 | 16,218,715 |
Securities sold under agreement to repurchase | 672,018 | 681,400 | 644,127 | 541,707 | 530,217 |
Federal funds purchased | |||||
and other short-term borrowing | 3,893 | 36,696 | 269,121 | 502,257 | 487,272 |
Accrued interest payable | 14,175 | 15,589 | 16,268 | 19,205 | 14,942 |
Junior subordinated debt securities | 297,145 | 296,969 | 296,793 | 296,617 | 135,535 |
Long-term debt | 4,488 | 4,592 | 4,699 | 4,800 | 5,138 |
Other liabilities | 293,332 | 294,831 | 283,772 | 261,123 | 278,454 |
Total Liabilities | 20,885,914 | 20,589,007 | 19,969,252 | 18,530,938 | 17,670,273 |
Shareholders' Equity | |||||
Preferred stock | 166,993 | 166,993 | 166,993 | 167,021 | 74,717 |
Common stock | 256,422 | 256,412 | 256,515 | 261,065 | 261,905 |
Capital surplus | 568,343 | 563,267 | 559,737 | 600,880 | 611,667 |
Accumulated other comprehensive income (loss) | 12,432 | 24,758 | 23,016 | (36,367) | (53,111) |
Retained earnings | 1,770,399 | 1,718,440 | 1,732,173 | 1,666,100 | 1,677,572 |
Total Shareholders' Equity | 2,774,589 | 2,729,870 | 2,738,434 | 2,658,699 | 2,572,750 |
Total Liabilities & Shareholders' Equity | $ 23,660,503 | $ 23,318,877 | $ 22,707,686 | $ 21,189,637 | $ 20,243,023 |
*Includes | |||||
BancorpSouth Bank | |||||||||||||
Consolidated Condensed Statements of Income | |||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||
(Unaudited) | |||||||||||||
Quarter Ended | Year Ended | ||||||||||||
Dec-20 | Sep-20 | Jun-20 | Mar-20 | Dec-19 | Dec-20 | Dec-19 | |||||||
INTEREST REVENUE: | |||||||||||||
Loans and leases | $ 174,072 | $ 175,810 | $ 173,164 | $ 177,019 | $ 182,269 | $ 700,065 | $ 697,425 | ||||||
Deposits with other banks | 50 | 74 | 207 | 739 | 1,225 | 1,070 | 6,489 | ||||||
Federal funds sold, securities purchased | |||||||||||||
under agreement to resell, FHLB and | |||||||||||||
other equity investments | 6 | 52 | 178 | 315 | 426 | 551 | 2,077 | ||||||
Available-for-sale securities: | |||||||||||||
Taxable | 21,895 | 21,280 | 20,783 | 21,508 | 17,241 | 85,466 | 56,660 | ||||||
Tax-exempt | 760 | 986 | 1,178 | 1,060 | 1,266 | 3,984 | 7,160 | ||||||
Loans held for sale | 2,504 | 2,468 | 1,962 | 1,423 | 1,385 | 8,357 | 5,201 | ||||||
Total interest revenue | 199,287 | 200,670 | 197,472 | 202,064 | 203,812 | 799,493 | 775,012 | ||||||
INTEREST EXPENSE: | |||||||||||||
Interest bearing demand | 9,766 | 10,773 | 11,631 | 15,522 | 15,202 | 47,692 | 58,771 | ||||||
Savings | 872 | 1,012 | 943 | 1,290 | 1,334 | 4,117 | 5,361 | ||||||
Other time | 8,189 | 9,287 | 10,296 | 11,168 | 11,134 | 38,940 | 39,380 | ||||||
Federal funds purchased and securities sold | |||||||||||||
under agreement to repurchase | 276 | 279 | 291 | 1,436 | 1,591 | 2,282 | 7,195 | ||||||
Short-term and long-term debt | 47 | 49 | 477 | 1,857 | 2,293 | 2,430 | 12,875 | ||||||
Junior subordinated debt | 3,201 | 3,338 | 3,263 | 3,261 | 1,482 | 13,063 | 1,482 | ||||||
Other | - | 1 | 1 | - | 2 | 2 | 4 | ||||||
Total interest expense | 22,351 | 24,739 | 26,902 | 34,534 | 33,038 | 108,526 | 125,068 | ||||||
Net interest revenue | 176,936 | 175,931 | 170,570 | 167,530 | 170,774 | 690,967 | 649,944 | ||||||
Provision for credit losses | 5,000 | 15,000 | 20,000 | 46,000 | - | 86,000 | 1,500 | ||||||
Net interest revenue, after provision for | |||||||||||||
credit losses | 171,936 | 160,931 | 150,570 | 121,530 | 170,774 | 604,967 | 648,444 | ||||||
NONINTEREST REVENUE: | |||||||||||||
Mortgage banking | 20,129 | 27,097 | 29,557 | 9,470 | 10,102 | 86,253 | 19,782 | ||||||
Credit card, debit card and merchant fees | 10,053 | 9,938 | 9,080 | 9,176 | 9,836 | 38,247 | 38,656 | ||||||
Deposit service charges | 9,708 | 8,892 | 7,647 | 11,682 | 12,193 | 37,929 | 46,015 | ||||||
Security gains(losses), net | 63 | 18 | 62 | (85) | (41) | 58 | 174 | ||||||
Insurance commissions | 29,815 | 32,750 | 33,118 | 29,603 | 27,648 | 125,286 | 123,291 | ||||||
Wealth management | 6,751 | 6,471 | 6,421 | 6,570 | 6,617 | 26,213 | 24,809 | ||||||
Other | 2,307 | 4,758 | 5,373 | 10,080 | 8,342 | 22,518 | 27,954 | ||||||
Total noninterest revenue | 78,826 | 89,924 | 91,258 | 76,496 | 74,697 | 336,504 | 280,681 | ||||||
NONINTEREST EXPENSE: | |||||||||||||
Salaries and employee benefits | 97,215 | 104,219 | 108,103 | 108,272 | 97,137 | 417,809 | 396,500 | ||||||
Occupancy, net of rental income | 13,004 | 13,053 | 12,890 | 12,708 | 12,267 | 51,655 | 48,129 | ||||||
Equipment | 4,756 | 4,519 | 4,762 | 4,649 | 4,725 | 18,686 | 17,712 | ||||||
Deposit insurance assessments | 1,696 | 1,522 | 1,962 | 1,546 | 2,200 | 6,726 | 9,143 | ||||||
Pension settlement expense | 5,846 | - | - | - | - | 5,846 | - | ||||||
Other | 45,394 | 32,192 | 34,787 | 40,831 | 46,022 | 153,204 | 158,123 | ||||||
Total noninterest expense | 167,911 | 155,505 | 162,504 | 168,006 | 162,351 | 653,926 | 629,607 | ||||||
Income before income taxes | 82,851 | 95,350 | 79,324 | 30,020 | 83,120 | 287,545 | 299,518 | ||||||
Income tax expense | 14,046 | 21,525 | 18,164 | 5,759 | 17,271 | 59,494 | 65,257 | ||||||
Net income | $ 68,805 | $ 73,825 | $ 61,160 | $ 24,261 | $ 65,849 | $ 228,051 | $ 234,261 | ||||||
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | - | 9,488 | - | ||||||
Net income available to common shareholders | $ 66,433 | $ 71,453 | $ 58,788 | $ 21,889 | $ 65,849 | $ 218,563 | $ 234,261 | ||||||
Net income per common share: Basic | $ 0.65 | $ 0.70 | $ 0.57 | $ 0.21 | $ 0.63 | $ 2.12 | $ 2.31 | ||||||
Diluted | $ 0.65 | $ 0.69 | $ 0.57 | $ 0.21 | $ 0.63 | $ 2.12 | $ 2.30 | ||||||
BancorpSouth Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Dec-20 | Sep-20 | Jun-20 | Mar-20 | Dec-19 | |||||
LOAN AND LEASE PORTFOLIO: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | 2,673,429 | 2,937,608 | 3,038,957 | 2,008,043 | 1,979,507 | ||||
Commercial and industrial-owner occupied | 2,281,127 | 2,297,008 | 2,296,287 | 2,290,585 | 2,268,813 | ||||
Total commercial and industrial | 4,954,556 | 5,234,616 | 5,335,244 | 4,298,628 | 4,248,320 | ||||
Commercial real estate | |||||||||
Agricultural | 317,994 | 333,839 | 333,615 | 339,539 | 337,349 | ||||
Construction, acquisition and development | 1,728,682 | 1,700,030 | 1,658,678 | 1,582,039 | 1,577,342 | ||||
Commercial real estate | 3,211,434 | 3,229,959 | 3,323,744 | 3,303,537 | 3,220,914 | ||||
Total commercial real estate | 5,258,110 | 5,263,828 | 5,316,037 | 5,225,115 | 5,135,605 | ||||
Consumer | |||||||||
Consumer mortgages | 3,726,241 | 3,704,490 | 3,646,168 | 3,572,277 | 3,543,075 | ||||
Home equity | 630,097 | 658,708 | 655,543 | 686,202 | 683,515 | ||||
Credit cards | 89,077 | 85,760 | 86,592 | 93,896 | 102,559 | ||||
Total consumer | 4,445,415 | 4,448,958 | 4,388,303 | 4,352,375 | 4,329,149 | ||||
All other | 364,398 | 380,333 | 387,837 | 348,527 | 376,609 | ||||
Total loans | $ 15,022,479 | $ 15,327,735 | $ 15,427,421 | $ 14,224,645 | $ 14,089,683 | ||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||
Balance, beginning of period | $ 250,624 | $ 237,025 | $ 218,199 | $ 119,066 | $ 116,908 | ||||
Impact of adopting ASC 326 - cumulative effect adjustment | - | - | - | 40,000 | - | ||||
Impact of adopting ASC 326 - purchased loans with credit | |||||||||
deterioration | - | - | - | 22,634 | - | ||||
Loans and leases charged-off: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | (4,343) | (560) | (1,506) | (10,792) | (1,273) | ||||
Commercial and industrial-owner occupied | (1,168) | (441) | (13) | (184) | (192) | ||||
Total commercial and industrial | (5,511) | (1,001) | (1,519) | (10,976) | (1,465) | ||||
Commercial real estate | |||||||||
Agricultural | (155) | - | (21) | (65) | (11) | ||||
Construction, acquisition and development | (1,773) | - | (9) | (3,173) | (26) | ||||
Commercial real estate | (3,134) | (738) | - | (67) | - | ||||
Total commercial real estate | (5,062) | (738) | (30) | (3,305) | (37) | ||||
Consumer | |||||||||
Consumer mortgages | (731) | (81) | (124) | (524) | (687) | ||||
Home equity | (395) | (41) | (162) | (236) | (173) | ||||
Credit cards | (458) | (682) | (703) | (798) | (797) | ||||
Total consumer | (1,584) | (804) | (989) | (1,558) | (1,657) | ||||
All other | (875) | (599) | (396) | (914) | (965) | ||||
Total loans charged-off | (13,032) | (3,142) | (2,934) | (16,753) | (4,124) | ||||
Recoveries: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | 779 | 294 | 277 | 355 | 353 | ||||
Commercial and industrial-owner occupied | 37 | 163 | 136 | 1,179 | 30 | ||||
Total commercial and industrial | 816 | 457 | 413 | 1,534 | 383 | ||||
Commercial real estate | |||||||||
Agricultural | 24 | 3 | 6 | 6 | 4 | ||||
Construction, acquisition and development | 73 | 55 | 172 | 245 | 584 | ||||
Commercial real estate | 45 | 209 | 50 | 135 | 4,212 | ||||
Total commercial real estate | 142 | 267 | 228 | 386 | 4,800 | ||||
Consumer | |||||||||
Consumer mortgages | 230 | 352 | 345 | 397 | 407 | ||||
Home equity | 151 | 132 | 259 | 80 | 216 | ||||
Credit cards | 211 | 270 | 195 | 285 | 218 | ||||
Total consumer | 592 | 754 | 799 | 762 | 841 | ||||
All other | 280 | 263 | 320 | 344 | 258 | ||||
Total recoveries | 1,830 | 1,741 | 1,760 | 3,026 | 6,282 | ||||
Net (charge-offs)recoveries | (11,202) | (1,401) | (1,174) | (13,727) | 2,158 | ||||
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 | $ 244,422 | $ 250,624 | $ 237,025 | $ 218,199 | $ 119,066 | ||||
Average loans for period | |||||||||
Ratio: | |||||||||
Net charge-offs(recoveries) to average loans (annualized) | ( | ||||||||
BancorpSouth Bank | ||||||||||
Selected Loan Data | ||||||||||
(Dollars in thousands) | ||||||||||
(Unaudited) | ||||||||||
Quarter Ended | ||||||||||
Dec-20 | Sep-20 | Jun-20 | Mar-20 | Dec-19 | ||||||
BXS ORIGINATED LOANS AND LEASES: | ||||||||||
Loans and leases charged off: | ||||||||||
Commercial and industrial | ||||||||||
Commercial and industrial-non real estate | $ (1,991) | $ (490) | $ (420) | $ (230) | $ (844) | |||||
Commercial and industrial-owner occupied | (303) | (434) | (13) | (19) | (184) | |||||
Total commercial and industrial | (2,294) | (924) | (433) | (249) | (1,028) | |||||
Commercial real estate | ||||||||||
Agricultural | (124) | - | - | (65) | (6) | |||||
Construction, acquisition and development | (1,709) | - | - | (121) | (26) | |||||
Commercial real estate | (1,704) | (155) | - | (67) | - | |||||
Total real estate | (3,537) | (155) | - | (253) | (32) | |||||
Consumer | ||||||||||
Consumer mortgages | (537) | (70) | (113) | (357) | (648) | |||||
Home equity | (395) | (41) | (162) | (236) | (173) | |||||
Credit cards | (458) | (682) | (703) | (798) | (797) | |||||
Total consumer | (1,390) | (793) | (978) | (1,391) | (1,618) | |||||
All other | (698) | (459) | (288) | (704) | (782) | |||||
Total loans charged off | (7,919) | (2,331) | (1,699) | (2,597) | (3,460) | |||||
Recoveries: | ||||||||||
Commercial and industrial | ||||||||||
Commercial and industrial-non real estate | 645 | 231 | 210 | 325 | 277 | |||||
Commercial and industrial-owner occupied | 27 | 163 | 136 | 1,177 | 30 | |||||
Total commercial and industrial | 672 | 394 | 346 | 1,502 | 307 | |||||
Commercial real estate | ||||||||||
Agricultural | 23 | 3 | 5 | 4 | 4 | |||||
Construction, acquisition and development | 73 | 55 | 170 | 244 | 583 | |||||
Commercial real estate | 45 | 208 | 50 | 135 | 4,212 | |||||
Total real estate | 141 | 266 | 225 | 383 | 4,799 | |||||
Consumer | ||||||||||
Consumer mortgages | 221 | 350 | 343 | 395 | 405 | |||||
Home equity | 149 | 130 | 258 | 79 | 215 | |||||
Credit cards | 211 | 270 | 195 | 285 | 218 | |||||
Total consumer | 581 | 750 | 796 | 759 | 838 | |||||
All other | 249 | 235 | 275 | 316 | 245 | |||||
Total recoveries | 1,643 | 1,645 | 1,642 | 2,960 | 6,189 | |||||
Net (charge-offs)/recoveries | $ (6,276) | $ (686) | $ (57) | $ 363 | $ 2,729 | |||||
BancorpSouth Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Dec-20 | Sep-20 | Jun-20 | Mar-20 | Dec-19 | |||||
ACQUIRED LOANS AND LEASES: | |||||||||
Loans and leases charged off: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | $ (2,352) | $ (70) | $ (1,086) | $ (10,562) | $ (429) | ||||
Commercial and industrial-owner occupied | (865) | (7) | - | (165) | (8) | ||||
Total commercial and industrial | (3,217) | (77) | (1,086) | (10,727) | (437) | ||||
Commercial real estate | |||||||||
Agricultural | (31) | - | (21) | - | (5) | ||||
Construction, acquisition and development | (64) | - | (9) | (3,052) | - | ||||
Commercial real estate | (1,430) | (583) | - | - | - | ||||
Total real estate | (1,525) | (583) | (30) | (3,052) | (5) | ||||
Consumer | |||||||||
Consumer mortgages | (194) | (11) | (11) | (167) | (39) | ||||
Home equity | - | - | - | - | - | ||||
Credit cards | - | - | - | - | - | ||||
Total consumer | (194) | (11) | (11) | (167) | (39) | ||||
All other | (177) | (140) | (108) | (210) | (183) | ||||
Total loans charged off | (5,113) | (811) | (1,235) | (14,156) | (664) | ||||
Recoveries: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | 134 | 63 | 67 | 30 | 76 | ||||
Commercial and industrial-owner occupied | 10 | - | - | 2 | - | ||||
Total commercial and industrial | 144 | 63 | 67 | 32 | 76 | ||||
Commercial real estate | |||||||||
Agricultural | 1 | - | 1 | 2 | - | ||||
Construction, acquisition and development | - | - | 2 | 1 | 1 | ||||
Commercial real estate | - | 1 | - | - | - | ||||
Total real estate | 1 | 1 | 3 | 3 | 1 | ||||
Consumer | |||||||||
Consumer mortgages | 9 | 2 | 2 | 2 | 2 | ||||
Home equity | 2 | 2 | 1 | 1 | 1 | ||||
Credit cards | - | - | - | - | - | ||||
Total consumer | 11 | 4 | 3 | 3 | 3 | ||||
All other | 31 | 28 | 45 | 28 | 13 | ||||
Total recoveries | 187 | 96 | 118 | 66 | 93 | ||||
Net (charge-offs)/recoveries | $ (4,926) | $ (715) | $ (1,117) | $ (14,090) | $ (571) | ||||
BancorpSouth Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Dec-20 | Sep-20 | Jun-20 | Mar-20 | Dec-19 | |||||
NON-PERFORMING ASSETS | |||||||||
NON-PERFORMING LOANS AND LEASES: | |||||||||
Nonaccrual Loans and Leases | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | $ 12,768 | $ 17,936 | $ 16,124 | $ 16,589 | $ 11,105 | ||||
Commercial and industrial-owner occupied | 15,783 | 18,343 | 16,745 | 11,212 | 7,838 | ||||
Total commercial and industrial | 28,551 | 36,279 | 32,869 | 27,801 | 18,943 | ||||
Commercial real estate | |||||||||
Agricultural | 5,013 | 5,907 | 5,244 | 5,454 | 4,772 | ||||
Construction, acquisition and development | 9,738 | 10,434 | 9,715 | 13,899 | 6,225 | ||||
Commercial real estate | 16,249 | 32,554 | 45,047 | 29,697 | 16,199 | ||||
Total commercial real estate | 31,000 | 48,895 | 60,006 | 49,050 | 27,196 | ||||
Consumer | |||||||||
Consumer mortgages | 32,951 | 32,872 | 30,672 | 29,834 | 28,879 | ||||
Home equity | 2,657 | 3,325 | 2,584 | 2,597 | 2,993 | ||||
Credit cards | 173 | 144 | 90 | 122 | 63 | ||||
Total consumer | 35,781 | 36,341 | 33,346 | 32,553 | 31,935 | ||||
All other | 1,046 | 593 | 532 | 670 | 722 | ||||
Total nonaccrual loans and leases | $ 96,378 | $ 122,108 | $ 126,753 | $ 110,074 | $ 78,796 | ||||
Loans and Leases 90+ Days Past Due, Still Accruing: | 14,320 | 17,641 | 9,877 | 7,272 | 17,531 | ||||
Restructured Loans and Leases, Still Accruing | 10,475 | 11,154 | 11,575 | 11,284 | 15,184 | ||||
Total non-performing loans and leases | $ 121,173 | $ 150,903 | $ 148,205 | $ 128,630 | $ 111,511 | ||||
OTHER REAL ESTATE OWNED: | 11,395 | 6,397 | 7,164 | 9,200 | 6,746 | ||||
Total Non-performing Assets | $ 132,568 | $ 157,300 | $ 155,369 | $ 137,830 | $ 118,257 | ||||
BXS originated assets | $ 97,025 | $ 109,418 | $ 94,155 | $ 85,908 | $ 78,295 | ||||
Acquired assets | 35,543 | 47,882 | 61,214 | 51,922 | 39,962 | ||||
Total Non-performing Assets | $ 132,568 | $ 157,300 | $ 155,369 | $ 137,830 | $ 118,257 | ||||
Additions to Nonaccrual Loans and Leases During the Quarter | $ 11,087 | $ 19,973 | $ 36,619 | $ 47,523 | $ 25,147 | ||||
Loans and Leases 30-89 Days Past Due, Still Accruing: | |||||||||
BXS originated loans | $ 40,424 | $ 42,978 | $ 35,002 | $ 54,315 | $ 44,559 | ||||
Acquired loans | 6,048 | 5,694 | 10,450 | 14,405 | 23,054 | ||||
Total Loans and Leases 30-89 days past due, still accruing | $ 46,472 | $ 48,672 | $ 45,452 | $ 68,720 | $ 67,613 | ||||
BancorpSouth Bank | ||||||||||||||
Selected Loan Data | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
(Unaudited) | ||||||||||||||
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 | |||||||
September 30, 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 | $ 2,875,468 | $ - | $ 47,526 | $ 178 | $ - | $ 3,664 | $ 10,772 | $ 2,937,608 | ||||||
Commercial and industrial-owner occupied | 2,224,302 | - | 56,919 | - | - | 12,116 | 3,671 | 2,297,008 | ||||||
Total commercial and industrial | 5,099,770 | - | 104,445 | 178 | - | 15,780 | 14,443 | 5,234,616 | ||||||
Commercial real estate | ||||||||||||||
Agricultural | 324,010 | - | 7,109 | - | - | 725 | 1,995 | 333,839 | ||||||
Construction, acquisition and development | 1,656,961 | - | 34,197 | - | - | 2,961 | 5,911 | 1,700,030 | ||||||
Commercial real estate | 3,070,472 | - | 127,835 | - | - | 27,493 | 4,159 | 3,229,959 | ||||||
Total commercial real estate | 5,051,443 | - | 169,141 | - | - | 31,179 | 12,065 | 5,263,828 | ||||||
Consumer | ||||||||||||||
Consumer mortgages | 3,615,071 | - | 85,827 | - | - | 2,859 | 733 | 3,704,490 | ||||||
Home equity | 651,525 | - | 7,183 | - | - | - | - | 658,708 | ||||||
Credit cards | 85,760 | - | - | - | - | - | - | 85,760 | ||||||
Total consumer | 4,352,356 | - | 93,010 | - | - | 2,859 | 733 | 4,448,958 | ||||||
All other | 374,374 | - | 5,887 | - | - | - | 72 | 380,333 | ||||||
Total loans | $ - | $ 372,483 | $ 178 | $ - | $ 49,818 | $ 27,313 | $ 15,327,735 | |||||||
BXS originated loans | $ - | $ 252,875 | $ 178 | $ - | $ 30,909 | $ - | $ 13,876,422 | |||||||
Acquired loans* | 1,285,483 | - | 119,608 | - | - | 18,909 | 27,313 | 1,451,313 | ||||||
Total Loans | $ - | $ 372,483 | $ 178 | $ - | $ 49,818 | $ 27,313 | $ 15,327,735 | |||||||
*Includes certain loans that are no longer included in the "Net book value of acquired loans" on page 12 as a result of maturity, refinance, or other triggering event. | ||||||||||||||
BancorpSouth Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Dec-20 | Sep-20 | Jun-20 | Mar-20 | Dec-19 | |||||
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE: | |||||||||
Pass | $ 13,738,979 | ||||||||
Special Mention | 8,736 | - | 4,264 | 7,129 | 2,240 | ||||
Substandard | 358,988 | 372,483 | 350,264 | 323,697 | 298,491 | ||||
Doubtful | 172 | 178 | 179 | 191 | 194 | ||||
Loss | - | - | - | 667 | - | ||||
Impaired | 29,545 | 49,818 | 57,406 | 40,627 | 24,094 | ||||
Purchased Credit Deteriorated (Loss) | 22,959 | 27,313 | 29,635 | 30,732 | - | ||||
Purchased Credit Impaired | - | - | - | - | 25,685 | ||||
Total | $ 14,089,683 | ||||||||
BXS ORIGINATED LOAN PORTFOLIO BY INTERNALLY | |||||||||
ASSIGNED GRADE: | |||||||||
Pass | $ 12,080,336 | ||||||||
Special Mention | 8,736 | - | 2,741 | 2,045 | - | ||||
Substandard | 259,682 | 252,875 | 231,687 | 225,506 | 202,017 | ||||
Doubtful | 172 | 178 | 179 | 191 | 194 | ||||
Loss | - | - | - | - | - | ||||
Impaired | 17,520 | 30,909 | 28,288 | 22,356 | 17,110 | ||||
Purchased Credit Deteriorated (Loss) | - | - | - | - | - | ||||
Purchased Credit Impaired | - | - | - | - | - | ||||
Total | $ 12,299,657 | ||||||||
ACQUIRED LOAN PORTFOLIO BY INTERNALLY | |||||||||
ASSIGNED GRADE: | |||||||||
Pass | $ 1,142,550 | $ 1,285,483 | $ 1,469,381 | $ 1,670,986 | $ 1,658,643 | ||||
Special Mention | - | - | 1,523 | 5,084 | 2,240 | ||||
Substandard | 99,306 | 119,608 | 118,577 | 98,191 | 96,474 | ||||
Doubtful | - | - | - | - | - | ||||
Loss | - | - | - | 667 | - | ||||
Impaired | 12,025 | 18,909 | 29,118 | 18,271 | 6,984 | ||||
Purchased Credit Deteriorated (Loss) | 22,959 | 27,313 | 29,635 | 30,732 | - | ||||
Purchased Credit Impaired | - | - | - | - | 25,685 | ||||
Total | $ 1,276,840 | $ 1,451,313 | $ 1,648,234 | $ 1,823,931 | $ 1,790,026 | ||||
BancorpSouth Bank | |||||||||
Geographical Information | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
December 31, 2020 | |||||||||
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 | $ 235,705 | $ 203,719 | $ 315,937 | $ 685,643 | $ 78,660 | $ 156,025 | $ 993,617 | $ 4,123 | $ 2,673,429 |
Commercial and industrial-owner occupied | 266,149 | 184,830 | 230,662 | 615,647 | 64,430 | 123,899 | 785,629 | 9,881 | 2,281,127 |
Total commercial and industrial | 501,854 | 388,549 | 546,599 | 1,301,290 | 143,090 | 279,924 | 1,779,246 | 14,004 | 4,954,556 |
Commercial real estate | |||||||||
Agricultural | 26,568 | 67,754 | 18,735 | 69,091 | 6,818 | 10,552 | 117,374 | 1,102 | 317,994 |
Construction, acquisition and development | 176,272 | 56,042 | 79,577 | 333,078 | 20,293 | 87,469 | 975,951 | - | 1,728,682 |
Commercial real estate | 332,075 | 336,629 | 260,110 | 664,930 | 221,773 | 221,706 | 1,171,593 | 2,618 | 3,211,434 |
Total commercial real estate | 534,915 | 460,425 | 358,422 | 1,067,099 | 248,884 | 319,727 | 2,264,918 | 3,720 | 5,258,110 |
Consumer | |||||||||
Consumer mortgages | 598,700 | 325,951 | 342,591 | 820,025 | 111,956 | 326,826 | 1,148,809 | 51,383 | 3,726,241 |
Home equity | 94,774 | 46,559 | 77,749 | 218,451 | 16,314 | 133,636 | 42,268 | 346 | 630,097 |
Credit cards | - | - | - | - | - | - | - | 89,077 | 89,077 |
Total consumer | 693,474 | 372,510 | 420,340 | 1,038,476 | 128,270 | 460,462 | 1,191,077 | 140,806 | 4,445,415 |
All other | 56,584 | 39,079 | 37,097 | 114,565 | 3,054 | 24,281 | 80,821 | 8,917 | 364,398 |
Total loans | $ 523,298 | $ 167,447 | |||||||
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 | $ 233 | $ 1,050 | $ 1,774 | $ 1,113 | $ 1,408 | $ 530 | $ 7,202 | $ 283 | $ 13,593 |
Commercial and industrial-owner occupied | 1,211 | 1,630 | 497 | 3,196 | 166 | 280 | 13,938 | - | 20,918 |
Total commercial and industrial | 1,444 | 2,680 | 2,271 | 4,309 | 1,574 | 810 | 21,140 | 283 | 34,511 |
Commercial real estate | |||||||||
Agricultural | 312 | 409 | 44 | 988 | - | - | 3,264 | - | 5,017 |
Construction, acquisition and development | 102 | 133 | 1,692 | 932 | - | 215 | 6,949 | - | 10,023 |
Commercial real estate | 3,027 | 204 | 4,488 | 1,054 | - | 94 | 8,282 | - | 17,149 |
Total commercial real estate | 3,441 | 746 | 6,224 | 2,974 | - | 309 | 18,495 | - | 32,189 |
Consumer | |||||||||
Consumer mortgages | 9,401 | 3,621 | 4,345 | 13,420 | 1,807 | 2,646 | 12,738 | 1,323 | 49,301 |
Home equity | 331 | 115 | 306 | 859 | 103 | 1,038 | 399 | - | 3,151 |
Credit cards | - | - | - | - | - | - | - | 918 | 918 |
Total consumer | 9,732 | 3,736 | 4,651 | 14,279 | 1,910 | 3,684 | 13,137 | 2,241 | 53,370 |
All other | 191 | 2 | 97 | 116 | - | 14 | 678 | 5 | 1,103 |
Total loans | $ 14,808 | $ 7,164 | $ 13,243 | $ 21,678 | $ 3,484 | $ 4,817 | $ 53,450 | $ 2,529 | $ 121,173 |
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 | N/A | ||||||||
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 | Year Ended | ||||||||||||
Dec-20 | Sep-20 | Jun-20 | Mar-20 | Dec-19 | Dec-20 | Dec-19 | |||||||
NONINTEREST REVENUE: | |||||||||||||
Mortgage banking excl. MSR and MSR Hedge market value adj | $ 19,917 | $ 26,667 | $ 31,930 | $ 20,553 | $ 6,938 | $ 99,067 | $ 34,297 | ||||||
MSR and MSR Hedge market value adjustment | 212 | 430 | (2,373) | (11,083) | 3,164 | (12,814) | (14,515) | ||||||
Credit card, debit card and merchant fees | 10,053 | 9,938 | 9,080 | 9,176 | 9,836 | 38,247 | 38,656 | ||||||
Deposit service charges | 9,708 | 8,892 | 7,647 | 11,682 | 12,193 | 37,929 | 46,015 | ||||||
Securities gains (losses), net | 63 | 18 | 62 | (85) | (41) | 58 | 174 | ||||||
Insurance commissions | 29,815 | 32,750 | 33,118 | 29,603 | 27,648 | 125,286 | 123,291 | ||||||
Trust income | 4,046 | 3,902 | 4,064 | 4,013 | 3,951 | 16,025 | 16,042 | ||||||
Annuity fees | 53 | 53 | 54 | 55 | 136 | 215 | 830 | ||||||
Brokerage commissions and fees | 2,652 | 2,516 | 2,303 | 2,502 | 2,530 | 9,973 | 7,937 | ||||||
Bank-owned life insurance | 2,425 | 1,902 | 1,855 | 1,999 | 3,427 | 8,181 | 9,632 | ||||||
Other miscellaneous income | (118) | 2,856 | 3,518 | 8,081 | 4,915 | 14,337 | 18,322 | ||||||
Total noninterest revenue | $ 78,826 | $ 89,924 | $ 91,258 | $ 76,496 | $ 74,697 | ||||||||
NONINTEREST EXPENSE: | |||||||||||||
Salaries and employee benefits | $ 97,215 | $ 104,219 | $ 108,103 | $ 108,272 | $ 97,137 | ||||||||
Occupancy, net of rental income | 13,004 | 13,053 | 12,890 | 12,708 | 12,267 | 51,655 | 48,129 | ||||||
Equipment | 4,756 | 4,519 | 4,762 | 4,649 | 4,725 | 18,686 | 17,712 | ||||||
Deposit insurance assessments | 1,696 | 1,522 | 1,962 | 1,546 | 2,200 | 6,726 | 9,143 | ||||||
Pension settlement expense | 5,846 | - | - | - | - | 5,846 | - | ||||||
Advertising | 899 | 826 | 918 | 1,099 | 1,153 | 3,742 | 4,909 | ||||||
Foreclosed property expense | 2,122 | (278) | 1,306 | 924 | 855 | 4,074 | 2,868 | ||||||
Telecommunications | 1,448 | 1,462 | 1,512 | 1,461 | 1,504 | 5,883 | 5,663 | ||||||
Public relations | 897 | 1,130 | 459 | 680 | 880 | 3,166 | 3,648 | ||||||
Data processing | 9,980 | 9,477 | 9,693 | 9,646 | 10,041 | 38,796 | 35,517 | ||||||
Computer software | 5,301 | 4,779 | 4,979 | 4,315 | 4,478 | 19,374 | 15,837 | ||||||
Amortization of intangibles | 2,499 | 2,357 | 2,355 | 2,394 | 2,508 | 9,605 | 9,118 | ||||||
Legal | 1,474 | (316) | 1,375 | 898 | 854 | 3,431 | 3,555 | ||||||
Merger expense | 212 | 129 | 510 | 4,494 | 5,782 | 5,345 | 13,871 | ||||||
Postage and shipping | 1,418 | 1,199 | 1,198 | 1,441 | 1,353 | 5,256 | 5,263 | ||||||
Other miscellaneous expense | 19,144 | 11,427 | 10,482 | 13,479 | 16,614 | 54,532 | 57,874 | ||||||
Total noninterest expense | $ 167,911 | $ 155,505 | $ 162,504 | $ 168,006 | $ 162,351 | ||||||||
INSURANCE COMMISSIONS: | |||||||||||||
Property and casualty commissions | $ 21,304 | $ 24,060 | $ 23,644 | $ 21,246 | $ 19,994 | $ 90,254 | $ 87,304 | ||||||
Life and health commissions | 5,915 | 6,072 | 6,771 | 6,175 | 5,979 | 24,933 | 25,432 | ||||||
Risk management income | 829 | 609 | 540 | 532 | 667 | 2,510 | 2,440 | ||||||
Other | 1,767 | 2,009 | 2,163 | 1,650 | 1,008 | 7,589 | 8,115 | ||||||
Total insurance commissions | $ 29,815 | $ 32,750 | $ 33,118 | $ 29,603 | $ 27,648 | ||||||||
BancorpSouth Bank | |||||
Selected Additional Information | |||||
(Dollars in thousands) | |||||
(Unaudited) | |||||
Quarter Ended | |||||
Dec-20 | Sep-20 | Jun-20 | Mar-20 | Dec-19 | |
MORTGAGE SERVICING RIGHTS: | |||||
Fair value, beginning of period | $ 44,944 | $ 40,821 | $ 42,243 | $ 57,109 | $ 51,492 |
Additions to mortgage servicing rights: | |||||
Originations of servicing assets | 6,608 | 7,041 | 4,297 | 3,079 | 4,025 |
Changes in fair value: | |||||
Due to payoffs/paydowns | (3,898) | (3,198) | (3,144) | (2,506) | (2,323) |
Due to change in valuation inputs or | |||||
assumptions used in the valuation model | (83) | 280 | (2,575) | (15,438) | 3,915 |
Other changes in fair value | - | - | - | (1) | - |
Fair value, end of period | $ 47,571 | $ 44,944 | $ 40,821 | $ 42,243 | $ 57,109 |
MORTGAGE BANKING REVENUE: | |||||
Production revenue: | |||||
Origination | $ 18,561 | $ 23,632 | $ 30,194 | $ 17,906 | $ 4,326 |
Servicing | 5,254 | 6,233 | 4,880 | 5,153 | 4,935 |
Payoffs/Paydowns | (3,898) | (3,198) | (3,144) | (2,506) | (2,323) |
Total production revenue | 19,917 | 26,667 | 31,930 | 20,553 | 6,938 |
Market value adjustment on MSR | (83) | 280 | (2,575) | (15,438) | 3,915 |
Market value adjustment on MSR Hedge | 295 | 150 | 202 | 4,355 | (751) |
Total mortgage banking revenue | $ 20,129 | $ 27,097 | $ 29,557 | $ 9,470 | $ 10,102 |
Mortgage loans serviced | $ 7,218,090 | $ 7,000,425 | $ 6,898,195 | ||
MSR/mtg loans serviced | |||||
AVAILABLE-FOR-SALE SECURITIES, at fair value | |||||
U.S. Government agencies | 2,871,408 | $ 3,116,458 | $ 3,348,206 | $ 3,599,317 | |
U.S. Government agency issued residential | |||||
mortgage-back securities | 2,421,409 | 1,625,325 | 699,864 | 132,902 | 133,375 |
U.S. Government agency issued commercial | |||||
mortgage-back securities | 806,206 | 758,116 | 759,980 | 595,885 | 609,009 |
Obligations of states and political subdivisions | 113,953 | 141,896 | 163,121 | 206,648 | 140,273 |
Corporate bonds | 18,030 | 17,990 | 2,000 | - | - |
Total available-for-sale securities | $ 5,659,785 | $ 4,973,171 | $ 4,481,974 | ||
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 tangible equity, return on tangible common equity, operating return on tangible equity-excluding MSR, operating return on 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, 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 | Year Ended | ||||||||||||||
12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 12/31/2020 | 12/31/2019 | |||||||||
Net income | $ 68,805 | $ 73,825 | $ 61,160 | $ 24,261 | $ 65,849 | $ 228,051 | $ 234,261 | ||||||||
Plus: | Merger expense, net of tax | 159 | 97 | 383 | 3,372 | 4,339 | 4,011 | 10,411 | |||||||
Initial provision for acquired loans, | |||||||||||||||
net of tax | - | - | - | 751 | - | 751 | - | ||||||||
Pension settlement expense, net of tax | 4,388 | - | - | - | - | 4,388 | - | ||||||||
Less: | Security gains(losses), net of tax | 48 | 13 | 47 | (64) | (30) | 44 | 132 | |||||||
Net operating income | $ 73,304 | $ 73,909 | $ 61,496 | $ 28,448 | $ 70,218 | $ 237,157 | $ 244,540 | ||||||||
Less: | Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | - | 9,488 | - | |||||||
Net operating income available to | |||||||||||||||
common shareholders | $ 70,932 | $ 71,537 | $ 59,124 | $ 26,076 | $ 70,218 | $ 227,669 | $ 244,540 | ||||||||
Net operating income | $ 73,304 | $ 73,909 | $ 61,496 | $ 28,448 | $ 70,218 | $ 237,157 | $ 244,540 | ||||||||
Less: | MSR market value adjustment, net of tax | 159 | 323 | (1,781) | (8,318) | 2,374 | (9,617) | (10,894) | |||||||
Net operating income-excluding MSR | $ 73,145 | $ 73,586 | $ 63,277 | $ 36,766 | $ 67,844 | $ 246,774 | $ 255,434 | ||||||||
Less: | Preferred dividends | 2,372 | 2,372 | 2,372 | 2,372 | - | 9,488 | - | |||||||
Net operating income available to common | |||||||||||||||
shareholders-excluding MSR | $ 70,773 | $ 71,214 | $ 60,905 | $ 34,394 | $ 67,844 | $ 237,286 | $ 255,434 | ||||||||
Reconciliation of Net Income to Pre-Tax Pre-Provision Net Revenue | |||||||||||||||
Net income | $ 68,805 | $ 73,825 | $ 61,160 | $ 24,261 | $ 65,849 | $ 228,051 | $ 234,261 | ||||||||
Plus: | Provision for credit losses | 5,000 | 15,000 | 20,000 | 46,000 | - | 86,000 | 1,500 | |||||||
Merger expense | 212 | 129 | 510 | 4,494 | 5,782 | 5,345 | 13,871 | ||||||||
Pension settlement expense | 5,846 | - | - | - | - | 5,846 | - | ||||||||
Income tax expense | 14,046 | 21,525 | 18,164 | 5,759 | 17,271 | 59,494 | 65,257 | ||||||||
Less: | Security gains(losses) | 63 | 18 | 62 | (85) | (41) | 58 | 174 | |||||||
MSR market value adjustment | 212 | 430 | (2,373) | (11,083) | 3,164 | (12,814) | (14,515) | ||||||||
Pre-tax pre-provision net revenue | $ 93,634 | $ 110,031 | $ 102,145 | $ 91,682 | $ 85,779 | $ 397,492 | $ 329,230 | ||||||||
Reconciliation of Total Operating Expense to Total Noninterest Expense: | |||||||||||||||
Total noninterest expense | $ 167,911 | $ 155,505 | $ 162,504 | $ 168,006 | $ 162,351 | $ 653,926 | $ 629,607 | ||||||||
Less: | Merger expense | 212 | 129 | 510 | 4,494 | 5,782 | 5,345 | 13,871 | |||||||
Pension settlement expense | 5,846 | - | - | - | - | 5,846 | - | ||||||||
Total operating expense | $ 161,853 | $ 155,376 | $ 161,994 | $ 163,512 | $ 156,569 | $ 642,735 | $ 615,736 | ||||||||
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 | Year Ended | ||||||||||||||
12/31/2020 | 9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 12/31/2020 | 12/31/2019 | |||||||||
Tangible assets | |||||||||||||||
Total assets | $ 23,555,422 | $ 23,236,176 | $ 21,052,576 | ||||||||||||
Less: | Goodwill | 851,612 | 847,531 | 847,984 | 848,242 | 825,679 | 851,612 | 825,679 | |||||||
Other identifiable intangible assets | 55,899 | 54,757 | 56,989 | 59,345 | 60,008 | 55,899 | 60,008 | ||||||||
Total tangible assets | $ 22,653,134 | $ 22,331,203 | $ 20,166,889 | ||||||||||||
Less: | PPP loans | 975,421 | 1,212,246 | 1,192,715 | - | - | 975,421 | - | |||||||
Total tangible assets-excluding PPP loans | $ 21,440,888 | $ 21,138,488 | $ 20,166,889 | ||||||||||||
PERIOD END BALANCES: | |||||||||||||||
Tangible shareholders' equity | |||||||||||||||
Total shareholders' equity | $ 2,822,477 | $ 2,782,539 | $ 2,732,687 | $ 2,681,904 | $ 2,685,017 | $ 2,822,477 | $ 2,685,017 | ||||||||
Less: | Goodwill | 851,612 | 847,531 | 847,984 | 848,242 | 825,679 | 851,612 | 825,679 | |||||||
Other identifiable intangible assets | 55,899 | 54,757 | 56,989 | 59,345 | 60,008 | 55,899 | 60,008 | ||||||||
Total tangible shareholders' equity | $ 1,914,966 | $ 1,880,251 | $ 1,827,714 | $ 1,774,317 | $ 1,799,330 | $ 1,914,966 | $ 1,799,330 | ||||||||
Less: | Preferred stock | 166,993 | 166,993 | 166,993 | 166,993 | 167,021 | 166,993 | 167,021 | |||||||
Total tangible common shareholders' equity | $ 1,747,973 | $ 1,713,258 | $ 1,660,721 | $ 1,607,324 | $ 1,632,309 | $ 1,747,973 | $ 1,632,309 | ||||||||
AVERAGE BALANCES: | |||||||||||||||
Tangible shareholders' equity | |||||||||||||||
Total shareholders' equity | $ 2,774,589 | $ 2,729,870 | $ 2,738,434 | $ 2,658,699 | $ 2,572,750 | $ 2,725,545 | $ 2,366,745 | ||||||||
Less: | Goodwill | 852,472 | 847,744 | 848,160 | 844,635 | 823,812 | 848,263 | 754,426 | |||||||
Other identifiable intangible assets | 54,858 | 56,045 | 58,280 | 58,805 | 60,559 | 56,988 | 54,787 | ||||||||
Total tangible shareholders' equity | $ 1,867,259 | $ 1,826,081 | $ 1,831,994 | $ 1,755,259 | $ 1,688,379 | $ 1,820,294 | $ 1,557,532 | ||||||||
Less: | Preferred stock | 166,993 | 166,993 | 166,993 | 167,021 | 74,717 | 167,000 | 18,833 | |||||||
Total tangible common shareholders' equity | $ 1,700,266 | $ 1,659,088 | $ 1,665,001 | $ 1,588,238 | $ 1,613,662 | $ 1,653,294 | $ 1,538,699 | ||||||||
Total average assets | $ 23,318,877 | $ 22,707,686 | $ 20,243,023 | ||||||||||||
Total shares of common stock outstanding | 102,561,480 | 102,558,459 | 102,566,301 | 102,632,484 | 104,522,804 | 102,561,480 | 104,522,804 | ||||||||
Average shares outstanding-diluted | 102,817,409 | 102,839,749 | 102,827,225 | 104,733,897 | 105,144,032 | 103,304,570 | 101,810,640 | ||||||||
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) | $ 17.04 | $ 16.71 | $ 16.19 | $ 15.66 | $ 15.62 | $ 17.04 | $ 15.62 | ||||||||
Operating earnings per common share (14) | $ 0.69 | $ 0.70 | $ 0.57 | $ 0.25 | $ 0.67 | $ 2.20 | $ 2.40 | ||||||||
Operating earnings per common share-excluding MSR (15) | $ 0.69 | $ 0.69 | $ 0.59 | $ 0.33 | $ 0.65 | $ 2.30 | $ 2.51 | ||||||||
(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
FAQ
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