BancorpSouth Announces Third Quarter 2020 Financial Results
BancorpSouth Bank (NYSE: BXS) reported a record net income of $71.5 million for Q3 2020, equating to $0.69 per diluted share, up from $63.8 million in Q3 2019. Net interest revenue rose 5.6% year-over-year to $175.9 million. Pre-tax pre-provision net revenue also hit a record at $110.0 million. However, a credit loss provision of $15.0 million was recorded, influenced by prolonged recovery forecasts due to COVID-19. Despite these challenges, total deposits grew by $174.9 million.
- Net income increased to $71.5 million, a record high.
- Total deposits rose by $174.9 million, or 3.5% annualized.
- Record pre-tax pre-provision net revenue of $110.0 million.
- Provision for credit losses of $15.0 million due to COVID-19 impacts.
- Net interest margin decreased to 3.31%, down from 3.88% year-over-year.
TUPELO, Miss., Oct. 19, 2020 /PRNewswire/ -- BancorpSouth Bank (NYSE: BXS) (the "Company") today announced financial results for the quarter ended September 30, 2020.
Highlights for the third quarter of 2020 included:
- Achieved record quarterly net income available to common shareholders of
$71.5 million , or$0.69 per diluted common share, and record net operating income available to common shareholders – excluding MSR – of$71.2 million , or$0.69 per diluted common share. - Recorded provision for credit losses of
$15.0 million primarily as a result of the lengthening of the anticipated recovery time for certain economic factors included in the Company's allowance for credit losses methodology associated with the coronavirus ("COVID-19") pandemic; net charge-offs for the quarter totaled$1.4 million , or 0.04 percent of net loans and leases on an annualized basis. - Generated a record
$110.0 million in pre-tax pre-provision net revenue, or 1.88 percent of average assets on an annualized basis, which represents an increase from 1.87 percent for the third quarter of 2019 and an increase from 1.81 percent for the second quarter of 2020. - Generated total deposit and customer repo growth of
$174.9 million for the quarter, or 3.5 percent on an annualized basis. - Mortgage production volume of
$937.7 million contributed to mortgage production and servicing revenue of$26.7 million . - Continued improvement in operating efficiency reflected in the decline in the operating efficiency ratio – excluding MSR – to 58.4 percent for the quarter.
- Maintained strong regulatory capital metrics; estimated total risk-based capital of 14.20 percent at September 30, 2020 compared to 11.28 percent at September 30, 2019.
"We continue to report strong financial performance despite the lingering economic and operational impact of the COVID-19 pandemic," remarked Dan Rollins, Chairman and Chief Executive Officer. "While the economies across our footprint have generally re-opened and most businesses are performing well, there are certain industries, including hospitality, that are still feeling the impact of the pandemic. The economic forecasts that we utilize in our reserve methodology reflect a lengthening in the anticipated economic recovery time as compared to the forecasts at the end of the second quarter. Accordingly, we recorded a provision for credit losses of
"As we look more specifically at our third quarter performance, our mortgage team had another outstanding quarter generating production volume of over
Earnings Summary
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 third quarter of 2020 reflect a provision for credit losses of
The Company adopted Accounting Standards Update 2016-13 "Financial Instruments – Credit Losses" 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 third quarter of 2020 was
Capital Management
The Company's ratio of shareholders' equity to assets was 11.81 percent at September 30, 2020, compared with 12.54 percent at September 30, 2019 and 11.76 percent at June 30, 2020. The ratio of tangible common shareholders' equity to tangible assets was 7.56 percent at September 30, 2020, compared with 8.47 percent at September 30, 2019 and 7.44 percent at June 30, 2020. The
In November 2019, the Company completed an underwritten public offering of
During the third quarter of 2020, the Company did not repurchase any shares of its common stock pursuant to its share repurchase program. As of September 30, 2020, the Company had 4,700,000 remaining shares available for repurchase under its current share repurchase authorization which expires on December 31, 2020.
Estimated regulatory capital ratios at September 30, 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 September 30, 2020, with Tier 1 risk-based capital of 11.65 percent and total risk-based capital of 14.20 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification.
Summary
Rollins concluded, "As we look to the remainder of 2020 and into 2021, we will not be immune to the headwinds facing our industry and our nation's economy. While we expect our mortgage operation to continue to provide a significant component of our revenue, it's not reasonable to believe that production volume can remain at the level that we have seen thus far in 2020. In addition, it's inevitable there will be some customers experience financial hardships as the economic impact of this pandemic continues. Beyond continuing to ensure we protect the health of our teammates and customers, monitoring credit quality and working through issues with our customers will be our top priority. Given the changes in customer behavior as well as lessons learned through this pandemic, banks like ours will need to continue to automate processes and rethink the workplace while ensuring the customer experience is a top priority. As we work through our 2021 strategic planning and budgeting process, our team is working diligently to identify ways to improve our cost structure including continued investments in technology as well as an enhanced focus on optimizing our branch structure. I'm confident that the strength of both our balance sheet and capital position will aide us in navigating this economic cycle and continuing to improve shareholder value."
TRANSACTIONS
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 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 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 Small Business Administration ("SBA") Preferred Lender, the Company actively participated 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 third quarter 2020 financial results on October 20, 2020, 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, and are subject to the safe harbor created 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 "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "aspire," "roadmap," "achieve," "estimate," "intend," "plan," "project," "projection," "forecast," "goal," "target," "would," and "outlook," or the negative version of those words or other comparable words of a future or forward-looking nature. These forward-looking statements include, without limitation, those relating to the impact of the COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations, the opportunities to enhance market share in certain markets and market acceptance of the Company generally in new markets, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its Bank Secrecy Act ("BSA") and anti-money laundering ("AML") compliance program and its fair lending compliance program, the Company's ability to pay dividends or coupons on Series A Preferred Stock or the Notes or its ability to ultimately repay the Notes or otherwise comply with the terms of such instruments, amortization expense for intangible assets, goodwill impairments, loan impairments, utilization of appraisals and inspections for real estate loans, maturity, renewal or extension of construction, acquisition and development loans, net interest revenue and net interest margin, fair value determinations, the amount of the Company's non-performing loans and leases, credit quality, credit losses, liquidity, off-balance sheet commitments and arrangements, valuation of mortgage servicing rights, allowance and provision for credit losses, early identification and resolution of credit issues, utilization of non-GAAP financial measures, the ability of the Company to collect all amounts due according to the contractual terms of loan agreements, the Company's reserve for losses from representation and warranty obligations, the Company's foreclosure process related to mortgage loans, the resolution of non-performing loans that are collaterally dependent, real estate values, fully-indexed interest rates, interest rate risk, interest rate sensitivity, the impact of interest rates on loan yields, calculation of economic value of equity, impaired loan charge-offs, diversification of the Company's revenue stream, the growth of the Company's insurance business and commission revenue, the growth of the Company's customer base and loan, deposit and fee revenue sources, liquidity needs and strategies, the ability of the Company to access successfully the capital and credit markets when needed or as desired, sources of funding, declaration and payment of dividends, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, improvement in the Company's efficiencies, operating expense trends, and the impact of certain claims and ongoing, pending or threatened litigation, administrative and investigatory matters.
These forward-looking statements are not historical facts, and are based upon current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain, involve risk and are beyond the Company's control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates and projections will be achieved. Accordingly, the Company cautions that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict and that are beyond the Company's control. These risks, assumptions and uncertainties may include, but are not limited to, the impact of the COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations, increases in the provision and allowance for credit losses and interest rate pressure on net interest revenue and net interest margin, the Company's ability to operate its regulatory compliance programs consistent with federal, state and local laws, including its BSA/AML compliance program and its fair lending compliance program, the lack of availability of the Company's filings mandated by the Exchange Act from the Securities and Exchange Commission's publicly available website after November 1, 2017, the impact of any ongoing pending or threatened litigation, administrative and investigatory matters involving the Company, conditions in the financial markets and economic conditions generally, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, limitations on the Company's ability to declare and pay dividends, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd-Frank Wall Street Reform, Consumer Protection Act, and the Coronavirus Aid, Relief and Economic Security Act established in response to the COVID-19 pandemic and any similar or related rules and regulations, and supervision of the Company's operations, the short-term and long-term impact of changes to banking capital standards on the Company's regulatory capital and liquidity, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic and environmental conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of the loss of any key Company personnel, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, the growth of the Company's insurance business and commission revenue, the growth of the Company's loan, deposit and fee revenue sources, the Company's ability to adapt its products and services to evolving industry standards and consumer preferences, competition with other financial services companies, risks in connection with completed or potential acquisitions, dispositions and other strategic growth opportunities and initiatives, the Company's growth strategy, interruptions or breaches in the Company's information system security, the failure of certain third-party vendors to perform, unfavorable ratings by rating agencies, dilution caused by the Company's issuance of any additional shares of its capital stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, the utilization of the Company's share repurchase program, the implementation and execution of cost saving initiatives, other factors generally understood to affect the assets, business, cash flows, financial condition, liquidity, prospects and/or results of operations of financial services companies, and other factors detailed from time to time in the Company's press and news releases, reports and other filings with the 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 the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. 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 differ materially from the Company's forward-looking statements. Accordingly, undue reliance should not be placed on any such forward-looking statements. Any forward-looking statement speaks 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 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.
BancorpSouth Bank | |||||||
Selected Financial Information | |||||||
(Dollars in thousands, except per share data) | |||||||
(Unaudited) | |||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Year to Date | Year to Date | |
9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 9/30/2020 | 9/30/2019 | |
Earnings Summary: | |||||||
Interest revenue | $ 200,670 | $ 197,472 | $ 202,064 | $ 203,812 | $ 199,004 | $ 600,206 | $ 571,200 |
Interest expense | 24,739 | 26,902 | 34,534 | 33,038 | 32,405 | 86,175 | 92,030 |
Net interest revenue | 175,931 | 170,570 | 167,530 | 170,774 | 166,599 | 514,031 | 479,170 |
Provision for credit losses | 15,000 | 20,000 | 46,000 | - | 500 | 81,000 | 1,500 |
Net interest revenue, after provision | |||||||
for credit losses | 160,931 | 150,570 | 121,530 | 170,774 | 166,099 | 433,031 | 477,670 |
Noninterest revenue | 89,924 | 91,258 | 76,496 | 74,697 | 75,432 | 257,678 | 205,984 |
Noninterest expense | 155,505 | 162,504 | 168,006 | 162,351 | 159,614 | 486,015 | 467,256 |
Income before income taxes | 95,350 | 79,324 | 30,020 | 83,120 | 81,917 | 204,694 | 216,398 |
Income tax expense | 21,525 | 18,164 | 5,759 | 17,271 | 18,160 | 45,448 | 47,986 |
Net income | $ 73,825 | $ 61,160 | $ 24,261 | $ 65,849 | $ 63,757 | $ 159,246 | $ 168,412 |
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | - | - | 7,116 | - |
Net income available to common shareholders | $ 71,453 | $ 58,788 | $ 21,889 | $ 65,849 | $ 63,757 | $ 152,130 | $ 168,412 |
Balance Sheet - Period End Balances | |||||||
Total assets | $ 23,555,422 | $ 23,236,176 | $ 21,032,524 | $ 21,052,576 | $ 19,850,225 | $ 23,555,422 | $ 19,850,225 |
Total earning assets | 21,340,371 | 21,119,073 | 18,939,750 | 18,891,021 | 17,619,053 | 21,340,371 | 17,619,053 |
Total securities | 5,659,785 | 4,973,171 | 4,468,340 | 4,481,974 | 2,766,446 | 5,659,785 | 2,766,446 |
Loans and leases, net of unearned income | 15,327,735 | 15,427,421 | 14,224,645 | 14,089,683 | 14,120,783 | 15,327,735 | 14,120,783 |
Allowance for credit losses | 250,624 | 237,025 | 218,199 | 119,066 | 116,908 | 250,624 | 116,908 |
Net book value of acquired loans (included in loans and leases above) | 1,320,671 | 1,510,008 | 1,661,329 | 1,628,265 | 1,845,056 | 1,320,671 | 1,845,056 |
Paycheck protection program (PPP) loans (included in loans and leases above) | 1,212,246 | 1,192,715 | - | - | - | 1,212,246 | - |
Remaining loan mark on acquired loans | 16,198 | 19,977 | 22,286 | 46,240 | 53,137 | 16,198 | 53,137 |
Total deposits | 19,412,979 | 19,179,486 | 16,887,916 | 16,410,699 | 16,025,756 | 19,412,979 | 16,025,756 |
Total deposits and securities sold under agreement to repurchase | 20,024,434 | 19,849,502 | 17,426,878 | 16,924,121 | 16,555,544 | 20,024,434 | 16,555,544 |
Long-term debt | 4,508 | 4,615 | 4,721 | 5,053 | 5,161 | 4,508 | 5,161 |
Junior subordinated debt securities | 297,074 | 296,898 | 296,723 | 296,547 | - | 297,074 | - |
Total shareholders' equity | 2,782,539 | 2,732,687 | 2,681,904 | 2,685,017 | 2,489,427 | 2,782,539 | 2,489,427 |
Common shareholders' equity | 2,615,546 | 2,565,694 | 2,514,911 | 2,517,996 | 2,489,427 | 2,615,546 | 2,489,427 |
Balance Sheet - Average Balances | |||||||
Total assets | $ 23,318,877 | $ 22,707,686 | $ 21,189,637 | $ 20,243,023 | $ 19,170,926 | $ 22,408,734 | $ 18,618,066 |
Total earning assets | 21,241,896 | 20,594,889 | 19,113,449 | 18,125,676 | 17,148,574 | 20,320,121 | 16,669,610 |
Total securities | 5,309,982 | 4,437,614 | 4,461,298 | 3,555,014 | 2,738,691 | 4,738,392 | 2,725,595 |
Loans and leases, net of unearned income | 15,369,684 | 15,114,732 | 14,226,788 | 14,061,118 | 13,726,755 | 14,905,435 | 13,453,898 |
PPP loans (included in loans and leases above) | 1,207,097 | 975,029 | - | - | - | 729,126 | - |
Total deposits | 19,258,930 | 18,454,472 | 16,905,229 | 16,218,715 | 15,509,511 | 18,210,053 | 15,015,973 |
Total deposits and securities sold under agreement to repurchase | 19,940,330 | 19,098,599 | 17,446,936 | 16,748,932 | 16,017,069 | 18,832,679 | 15,499,616 |
Long-term debt | 4,592 | 4,699 | 4,800 | 5,138 | 5,303 | 4,697 | 5,509 |
Junior subordinated debt securities | 296,969 | 296,793 | 296,617 | 135,535 | - | 296,794 | - |
Total shareholders' equity | 2,729,870 | 2,738,434 | 2,658,699 | 2,572,750 | 2,378,882 | 2,709,077 | 2,297,322 |
Common shareholders' equity | 2,562,877 | 2,571,441 | 2,491,678 | 2,498,033 | 2,378,882 | 2,542,075 | 2,297,322 |
Nonperforming Assets: | |||||||
Non-accrual loans and leases | $ 122,108 | $ 126,753 | $ 110,074 | $ 78,796 | $ 76,383 | $ 122,108 | $ 76,383 |
Loans and leases 90+ days past due, still accruing | 17,641 | 9,877 | 7,272 | 17,531 | 16,659 | 17,641 | 16,659 |
Restructured loans and leases, still accruing | 11,154 | 11,575 | 11,284 | 15,184 | 15,033 | 11,154 | 15,033 |
Non-performing loans (NPLs) | 150,903 | 148,205 | 128,630 | 111,511 | 108,075 | 150,903 | 108,075 |
Other real estate owned | 6,397 | 7,164 | 9,200 | 6,746 | 7,929 | 6,397 | 7,929 |
Non-performing assets (NPAs) | $ 157,300 | $ 155,369 | $ 137,830 | $ 118,257 | $ 116,004 | $ 157,300 | $ 116,004 |
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) | 9.18 | 11.15 | 9.46 | 13.60 | 13.77 | 9.18 | 13.77 |
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 | 4,691 | 4,742 | 4,737 | 4,693 | 4,674 | 4,691 | 4,674 |
*Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 24 and 25. | |||||||
BancorpSouth Bank | |||||||
Selected Financial Information | |||||||
(Dollars in thousands, except per share data) | |||||||
(Unaudited) | |||||||
Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Quarter Ended | Year to Date | Year to Date | |
9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 9/30/2020 | 9/30/2019 | |
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 net loans and leases | |||||||
Non-performing assets to net loans and leases, 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 | $ 0.70 | $ 0.57 | $ 0.21 | $ 0.63 | $ 0.63 | 1.47 | $ 1.68 |
Diluted earnings per share | 0.69 | 0.57 | 0.21 | 0.63 | 0.63 | 1.47 | 1.67 |
Operating earnings per share* | 0.70 | 0.57 | 0.25 | 0.67 | 0.66 | 1.51 | 1.73 |
Operating earnings per share- excluding MSR* | 0.69 | 0.59 | 0.33 | 0.65 | 0.69 | 1.61 | 1.86 |
Cash dividends per share | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.56 | 0.53 |
Book value per share | 25.50 | 25.01 | 24.50 | 24.09 | 23.76 | 25.50 | 23.76 |
Tangible book value per share* | 16.71 | 16.19 | 15.66 | 15.62 | 15.33 | 16.71 | 15.33 |
Market value per share (last) | 19.38 | 22.74 | 18.92 | 31.41 | 29.61 | 19.38 | 29.61 |
Market value per share (high) | 24.29 | 25.93 | 31.61 | 32.97 | 30.54 | 31.61 | 33.45 |
Market value per share (low) | 18.11 | 17.21 | 17.24 | 28.13 | 26.47 | 17.21 | 25.76 |
Market value per share (avg) | 21.36 | 21.21 | 26.43 | 30.88 | 28.54 | 22.97 | 29.07 |
Dividend payout ratio | |||||||
Total shares outstanding | 102,558,459 | 102,566,301 | 102,632,484 | 104,522,804 | 104,775,876 | 102,558,459 | 104,775,876 |
Average shares outstanding - basic | 102,564,466 | 102,603,525 | 104,354,328 | 104,739,906 | 101,168,730 | 103,174,106 | 100,428,809 |
Average shares outstanding - diluted | 102,839,749 | 102,827,225 | 104,733,897 | 105,144,032 | 101,493,247 | 103,466,957 | 100,699,510 |
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 | 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 | N/A | N/A | |||||
Long-term debt | |||||||
Total interest bearing liabilities and expense | |||||||
Interest bearing liabilities to interest earning assets | |||||||
Net interest tax equivalent adjustment | $ 618 | $ 725 | $ 714 | $ 800 | $ 972 | $ 2,057 | $ 2,982 |
*Denotes non-GAAP financial measure. Refer to related disclosure and reconciliation on pages 24 and 25. | |||||||
BancorpSouth Bank | |||||
Consolidated Balance Sheets | |||||
(Unaudited) | |||||
Sep-20 | Jun-20 | Mar-20 | Dec-19 | Sep-19 | |
(Dollars in thousands) | |||||
Assets | |||||
Cash and due from banks | $ 306,164 | $ 240,354 | $ 253,495 | $ 261,773 | $ 333,108 |
Interest bearing deposits with other banks | |||||
and Federal funds sold | 39,782 | 318,615 | 29,490 | 71,233 | 466,650 |
Available-for-sale securities, at fair value | 5,659,785 | 4,973,171 | 4,468,340 | 4,481,974 | 2,766,446 |
Loans and leases* | 15,344,006 | 15,444,794 | 14,241,912 | 14,107,743 | 14,137,563 |
Less: Unearned income | 16,271 | 17,373 | 17,267 | 18,060 | 16,780 |
Allowance for credit losses | 250,624 | 237,025 | 218,199 | 119,066 | 116,908 |
Net loans and leases | 15,077,111 | 15,190,396 | 14,006,446 | 13,970,617 | 14,003,875 |
Loans held for sale | 304,215 | 391,051 | 194,321 | 210,361 | 229,514 |
Premises and equipment, net | 508,149 | 504,748 | 497,669 | 480,901 | 480,819 |
Accrued interest receivable | 110,185 | 101,321 | 70,463 | 65,173 | 62,818 |
Goodwill | 847,531 | 847,984 | 848,242 | 825,679 | 822,093 |
Other identifiable intangibles | 54,757 | 56,989 | 59,345 | 60,008 | 61,100 |
Bank owned life insurance | 331,799 | 329,167 | 327,312 | 326,417 | 328,670 |
Other real estate owned | 6,397 | 7,164 | 9,200 | 6,746 | 7,929 |
Other assets | 309,547 | 275,216 | 268,201 | 291,694 | 287,203 |
Total Assets | $ 23,555,422 | $ 23,236,176 | $ 21,032,524 | $ 21,052,576 | $ 19,850,225 |
Liabilities | |||||
Deposits: | |||||
Demand: Noninterest bearing | $ 6,336,792 | $ 6,385,370 | $ 4,861,155 | $ 4,661,821 | $ 4,770,907 |
Interest bearing | 8,170,402 | 7,907,637 | 7,268,053 | 7,176,934 | 6,745,329 |
Savings | 2,325,980 | 2,234,853 | 2,013,343 | 1,937,985 | 1,898,813 |
Other time | 2,579,805 | 2,651,626 | 2,745,365 | 2,633,959 | 2,610,707 |
Total deposits | 19,412,979 | 19,179,486 | 16,887,916 | 16,410,699 | 16,025,756 |
Securities sold under agreement to repurchase | 611,455 | 670,016 | 538,962 | 513,422 | 529,788 |
Federal funds purchased | |||||
and other short-term borrowing | 95,217 | 220 | 290,224 | 725,000 | 480,000 |
Accrued interest payable | 15,286 | 13,476 | 17,482 | 15,124 | 13,120 |
Junior subordinated debt securities | 297,074 | 296,898 | 296,723 | 296,547 | - |
Long-term debt | 4,508 | 4,615 | 4,721 | 5,053 | 5,161 |
Other liabilities | 336,364 | 338,778 | 314,592 | 401,714 | 306,973 |
Total Liabilities | 20,772,883 | 20,503,489 | 18,350,620 | 18,367,559 | 17,360,798 |
Shareholders' Equity | |||||
Preferred stock | 166,993 | 166,993 | 166,993 | 167,021 | - |
Common stock | 256,396 | 256,416 | 256,581 | 261,307 | 261,940 |
Capital surplus | 565,635 | 561,541 | 558,114 | 605,976 | 611,115 |
Accumulated other comprehensive income (loss) | 18,490 | 25,191 | 17,849 | (62,663) | (50,538) |
Retained earnings | 1,775,025 | 1,722,546 | 1,682,367 | 1,713,376 | 1,666,910 |
Total Shareholders' Equity | 2,782,539 | 2,732,687 | 2,681,904 | 2,685,017 | 2,489,427 |
Total Liabilities & Shareholders' Equity | $ 23,555,422 | $ 23,236,176 | $ 21,032,524 | $ 21,052,576 | $ 19,850,225 |
*Includes | |||||
BancorpSouth Bank | |||||
Consolidated Average Balance Sheets | |||||
(Unaudited) | |||||
Sep-20 | Jun-20 | Mar-20 | Dec-19 | Sep-19 | |
(Dollars in thousands) | |||||
Assets | |||||
Cash and due from banks | $ 232,421 | $ 229,334 | $ 246,860 | $ 244,444 | $ 229,814 |
Interest bearing deposits with other banks | |||||
and Federal funds sold | 257,057 | 760,789 | 239,766 | 300,495 | 486,716 |
Available-for-sale securities, at fair value | 5,309,982 | 4,437,614 | 4,461,298 | 3,555,014 | 2,738,691 |
Loans and leases* | 15,386,721 | 15,132,600 | 14,244,649 | 14,078,793 | 13,743,876 |
Less: Unearned income | 17,037 | 17,868 | 17,861 | 17,675 | 17,121 |
Allowance for credit losses | 236,536 | 217,508 | 193,796 | 117,668 | 116,232 |
Net loans and leases | 15,133,148 | 14,897,224 | 14,032,992 | 13,943,450 | 13,610,523 |
Loans held for sale | 296,352 | 261,377 | 147,798 | 173,649 | 157,691 |
Premises and equipment, net | 507,190 | 499,767 | 494,413 | 481,623 | 458,758 |
Accrued interest receivable | 104,435 | 137,456 | 64,010 | 60,678 | 57,941 |
Goodwill | 847,744 | 848,160 | 844,635 | 823,812 | 761,084 |
Other identifiable intangibles | 56,045 | 58,280 | 58,805 | 60,559 | 59,253 |
Bank owned life insurance | 330,642 | 328,037 | 326,808 | 328,567 | 319,894 |
Other real estate owned | 7,754 | 8,410 | 8,151 | 7,820 | 6,908 |
Other assets | 236,107 | 241,238 | 264,101 | 262,912 | 283,653 |
Total Assets | |||||
Liabilities | |||||
Deposits: | |||||
Demand: Noninterest bearing | $ 6,340,942 | $ 5,942,570 | $ 4,717,202 | $ 4,803,104 | $ 4,479,698 |
Interest bearing | 8,022,755 | 7,674,479 | 7,466,674 | 6,872,921 | 6,655,962 |
Savings | 2,280,860 | 2,152,092 | 1,975,690 | 1,913,650 | 1,869,045 |
Other time | 2,614,373 | 2,685,331 | 2,745,663 | 2,629,040 | 2,504,806 |
Total deposits | 19,258,930 | 18,454,472 | 16,905,229 | 16,218,715 | 15,509,511 |
Securities sold under agreement to repurchase | 681,400 | 644,127 | 541,707 | 530,217 | 507,558 |
Federal funds purchased | |||||
and other short-term borrowing | 36,696 | 269,121 | 502,257 | 487,272 | 487,456 |
Accrued interest payable | 15,589 | 16,268 | 19,205 | 14,942 | 13,756 |
Junior subordinated debt securities | 296,969 | 296,793 | 296,617 | 135,535 | - |
Long-term debt | 4,592 | 4,699 | 4,800 | 5,138 | 5,303 |
Other liabilities | 294,831 | 283,772 | 261,123 | 278,454 | 268,460 |
Total Liabilities | 20,589,007 | 19,969,252 | 18,530,938 | 17,670,273 | 16,792,044 |
Shareholders' Equity | |||||
Preferred stock | 166,993 | 166,993 | 167,021 | 74,717 | - |
Common stock | 256,412 | 256,515 | 261,065 | 261,905 | 254,881 |
Capital surplus | 563,267 | 559,737 | 600,880 | 611,667 | 538,665 |
Accumulated other comprehensive income (loss) | 24,758 | 23,016 | (36,367) | (53,111) | (52,204) |
Retained earnings | 1,718,440 | 1,732,173 | 1,666,100 | 1,677,572 | 1,637,540 |
Total Shareholders' Equity | 2,729,870 | 2,738,434 | 2,658,699 | 2,572,750 | 2,378,882 |
Total Liabilities & Shareholders' Equity | |||||
*Includes | |||||
BancorpSouth Bank | |||||||||||||
Consolidated Condensed Statements of Income | |||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||
(Unaudited) | |||||||||||||
Quarter Ended | Year to Date | ||||||||||||
Sep-20 | Jun-20 | Mar-20 | Dec-19 | Sep-19 | Sep-20 | Sep-19 | |||||||
INTEREST REVENUE: | |||||||||||||
Loans and leases | |||||||||||||
Deposits with other banks | 74 | 207 | 739 | 1,225 | 2,456 | 1,020 | 5,264 | ||||||
Federal funds sold, securities purchased | |||||||||||||
under agreement to resell, FHLB and | |||||||||||||
other equity investments | 52 | 178 | 315 | 426 | 735 | 545 | 1,651 | ||||||
Available-for-sale securities: | |||||||||||||
Taxable | 21,280 | 20,783 | 21,508 | 17,241 | 13,759 | 63,571 | 39,419 | ||||||
Tax-exempt | 986 | 1,178 | 1,060 | 1,266 | 1,883 | 3,224 | 5,894 | ||||||
Loans held for sale | 2,468 | 1,962 | 1,423 | 1,385 | 1,442 | 5,853 | 3,816 | ||||||
Total interest revenue | 200,670 | 197,472 | 202,064 | 203,812 | 199,004 | 600,206 | 571,200 | ||||||
INTEREST EXPENSE: | |||||||||||||
Interest bearing demand | 10,773 | 11,631 | 15,522 | 15,202 | 15,689 | 37,926 | 43,569 | ||||||
Savings | 1,012 | 943 | 1,290 | 1,334 | 1,341 | 3,245 | 4,027 | ||||||
Other time | 9,287 | 10,296 | 11,168 | 11,134 | 10,546 | 30,751 | 28,246 | ||||||
Federal funds purchased and securities sold | |||||||||||||
under agreement to repurchase | 279 | 291 | 1,436 | 1,591 | 1,857 | 2,006 | 5,604 | ||||||
Short-term and long-term debt | 49 | 477 | 1,857 | 2,293 | 2,971 | 2,383 | 10,582 | ||||||
Junior subordinated debt | 3,338 | 3,263 | 3,261 | 1,482 | - | 9,862 | - | ||||||
Other | 1 | 1 | - | 2 | 1 | 2 | 2 | ||||||
Total interest expense | 24,739 | 26,902 | 34,534 | 33,038 | 32,405 | 86,175 | 92,030 | ||||||
Net interest revenue | 175,931 | 170,570 | 167,530 | 170,774 | 166,599 | 514,031 | 479,170 | ||||||
Provision for credit losses | 15,000 | 20,000 | 46,000 | - | 500 | 81,000 | 1,500 | ||||||
Net interest revenue, after provision for | |||||||||||||
credit losses | 160,931 | 150,570 | 121,530 | 170,774 | 166,099 | 433,031 | 477,670 | ||||||
NONINTEREST REVENUE: | |||||||||||||
Mortgage banking | 27,097 | 29,557 | 9,470 | 10,102 | 7,289 | 66,124 | 9,680 | ||||||
Credit card, debit card and merchant fees | 9,938 | 9,080 | 9,176 | 9,836 | 9,778 | 28,194 | 28,820 | ||||||
Deposit service charges | 8,892 | 7,647 | 11,682 | 12,193 | 11,939 | 28,221 | 33,822 | ||||||
Security gains(losses), net | 18 | 62 | (85) | (41) | 117 | (5) | 215 | ||||||
Insurance commissions | 32,750 | 33,118 | 29,603 | 27,648 | 31,512 | 95,471 | 95,643 | ||||||
Wealth management | 6,471 | 6,421 | 6,570 | 6,617 | 6,651 | 19,462 | 18,192 | ||||||
Other | 4,758 | 5,373 | 10,080 | 8,342 | 8,146 | 20,211 | 19,612 | ||||||
Total noninterest revenue | 89,924 | 91,258 | 76,496 | 74,697 | 75,432 | 257,678 | 205,984 | ||||||
NONINTEREST EXPENSE: | |||||||||||||
Salaries and employee benefits | 104,219 | 108,103 | 108,272 | 97,137 | 101,154 | 320,594 | 299,363 | ||||||
Occupancy, net of rental income | 13,053 | 12,890 | 12,708 | 12,267 | 12,323 | 38,651 | 35,862 | ||||||
Equipment | 4,519 | 4,762 | 4,649 | 4,725 | 4,676 | 13,930 | 12,987 | ||||||
Deposit insurance assessments | 1,522 | 1,962 | 1,546 | 2,200 | 2,038 | 5,030 | 6,943 | ||||||
Other | 32,192 | 34,787 | 40,831 | 46,022 | 39,423 | 107,810 | 112,101 | ||||||
Total noninterest expense | 155,505 | 162,504 | 168,006 | 162,351 | 159,614 | 486,015 | 467,256 | ||||||
Income before income taxes | 95,350 | 79,324 | 30,020 | 83,120 | 81,917 | 204,694 | 216,398 | ||||||
Income tax expense | 21,525 | 18,164 | 5,759 | 17,271 | 18,160 | 45,448 | 47,986 | ||||||
Net income | $ 73,825 | $ 61,160 | $ 24,261 | $ 65,849 | $ 63,757 | ||||||||
Less: Preferred dividends | 2,372 | 2,372 | 2,372 | - | - | 7,116 | - | ||||||
Net income available to common shareholders | $ 71,453 | $ 58,788 | $ 21,889 | $ 65,849 | $ 63,757 | ||||||||
Net income per common share: Basic | $ 0.70 | $ 0.57 | $ 0.21 | $ 0.63 | $ 0.63 | $ 1.47 | $ 1.68 | ||||||
Diluted | $ 0.69 | $ 0.57 | $ 0.21 | $ 0.63 | $ 0.63 | $ 1.47 | $ 1.67 | ||||||
BancorpSouth Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Sep-20 | Jun-20 | Mar-20 | Dec-19 | Sep-19 | |||||
LOAN AND LEASE PORTFOLIO: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | 2,937,608 | 3,038,957 | 2,008,043 | 1,979,507 | 1,887,817 | ||||
Commercial and industrial-owner occupied | 2,297,008 | 2,296,287 | 2,290,585 | 2,268,813 | 2,276,338 | ||||
Total commercial and industrial | 5,234,616 | 5,335,244 | 4,298,628 | 4,248,320 | 4,164,155 | ||||
Commercial real estate | |||||||||
Agricultural | 333,839 | 333,615 | 339,539 | 337,349 | 347,866 | ||||
Construction, acquisition and development | 1,700,030 | 1,658,678 | 1,582,039 | 1,577,342 | 1,538,073 | ||||
Commercial real estate | 3,229,959 | 3,323,744 | 3,303,537 | 3,220,914 | 3,345,166 | ||||
Total commercial real estate | 5,263,828 | 5,316,037 | 5,225,115 | 5,135,605 | 5,231,105 | ||||
Consumer | |||||||||
Consumer mortgages | 3,704,490 | 3,646,168 | 3,572,277 | 3,543,075 | 3,519,449 | ||||
Home equity | 658,708 | 655,543 | 686,202 | 683,515 | 678,294 | ||||
Credit cards | 85,760 | 86,592 | 93,896 | 102,559 | 101,213 | ||||
Total consumer | 4,448,958 | 4,388,303 | 4,352,375 | 4,329,149 | 4,298,956 | ||||
All other | 380,333 | 387,837 | 348,527 | 376,609 | 426,567 | ||||
Total loans | $ 15,327,735 | $ 15,427,421 | $ 14,224,645 | $ 14,089,683 | $ 14,120,783 | ||||
ALLOWANCE FOR CREDIT LOSSES: | |||||||||
Balance, beginning of period | $ 237,025 | $ 218,199 | $ 119,066 | $ 116,908 | $ 115,691 | ||||
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 | (560) | (1,506) | (10,792) | (1,273) | (218) | ||||
Commercial and industrial-owner occupied | (441) | (13) | (184) | (192) | (65) | ||||
Total commercial and industrial | (1,001) | (1,519) | (10,976) | (1,465) | (283) | ||||
Commercial real estate | |||||||||
Agricultural | - | (21) | (65) | (11) | - | ||||
Construction, acquisition and development | - | (9) | (3,173) | (26) | - | ||||
Commercial real estate | (738) | - | (67) | - | (49) | ||||
Total commercial real estate | (738) | (30) | (3,305) | (37) | (49) | ||||
Consumer | |||||||||
Consumer mortgages | (81) | (124) | (524) | (687) | (255) | ||||
Home equity | (41) | (162) | (236) | (173) | (39) | ||||
Credit cards | (682) | (703) | (798) | (797) | (631) | ||||
Total consumer | (804) | (989) | (1,558) | (1,657) | (925) | ||||
All other | (599) | (396) | (914) | (965) | (895) | ||||
Total loans charged-off | (3,142) | (2,934) | (16,753) | (4,124) | (2,152) | ||||
Recoveries: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | 294 | 277 | 355 | 353 | 835 | ||||
Commercial and industrial-owner occupied | 163 | 136 | 1,179 | 30 | 49 | ||||
Total commercial and industrial | 457 | 413 | 1,534 | 383 | 884 | ||||
Commercial real estate | |||||||||
Agricultural | 3 | 6 | 6 | 4 | 3 | ||||
Construction, acquisition and development | 55 | 172 | 245 | 584 | 480 | ||||
Commercial real estate | 209 | 50 | 135 | 4,212 | 29 | ||||
Total commercial real estate | 267 | 228 | 386 | 4,800 | 512 | ||||
Consumer | |||||||||
Consumer mortgages | 352 | 345 | 397 | 407 | 278 | ||||
Home equity | 132 | 259 | 80 | 216 | 731 | ||||
Credit cards | 270 | 195 | 285 | 218 | 224 | ||||
Total consumer | 754 | 799 | 762 | 841 | 1,233 | ||||
All other | 263 | 320 | 344 | 258 | 240 | ||||
Total recoveries | 1,741 | 1,760 | 3,026 | 6,282 | 2,869 | ||||
Net (charge-offs)recoveries | (1,401) | (1,174) | (13,727) | 2,158 | 717 | ||||
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 | 15,000 | 20,000 | 45,000 | - | 500 | ||||
Total provision | 15,000 | 20,000 | 46,000 | - | 500 | ||||
Balance, end of period | $ 250,624 | $ 237,025 | $ 218,199 | $ 119,066 | $ 116,908 | ||||
Average loans for period | |||||||||
Ratio: | |||||||||
Net charge-offs(recoveries) to average loans (annualized) | ( | ( | |||||||
BancorpSouth Bank | ||||||||||
Selected Loan Data | ||||||||||
(Dollars in thousands) | ||||||||||
(Unaudited) | ||||||||||
Quarter Ended | ||||||||||
Sep-20 | Jun-20 | Mar-20 | Dec-19 | Sep-19 | ||||||
BXS ORIGINATED LOANS AND LEASES: | ||||||||||
Loans and leases charged off: | ||||||||||
Commercial and industrial | ||||||||||
Commercial and industrial-non real estate | $ (490) | $ (420) | $ (230) | $ (844) | $ (185) | |||||
Commercial and industrial-owner occupied | (434) | (13) | (19) | (184) | (65) | |||||
Total commercial and industrial | (924) | (433) | (249) | (1,028) | (250) | |||||
Commercial real estate | ||||||||||
Agricultural | - | - | (65) | (6) | - | |||||
Construction, acquisition and development | - | - | (121) | (26) | - | |||||
Commercial real estate | (155) | - | (67) | - | (49) | |||||
Total real estate | (155) | - | (253) | (32) | (49) | |||||
Consumer | ||||||||||
Consumer mortgages | (70) | (113) | (357) | (648) | (255) | |||||
Home equity | (41) | (162) | (236) | (173) | (39) | |||||
Credit cards | (682) | (703) | (798) | (797) | (631) | |||||
Total consumer | (793) | (978) | (1,391) | (1,618) | (925) | |||||
All other | (459) | (288) | (704) | (782) | (848) | |||||
Total loans charged off | (2,331) | (1,699) | (2,597) | (3,460) | (2,072) | |||||
Recoveries: | ||||||||||
Commercial and industrial | ||||||||||
Commercial and industrial-non real estate | 231 | 210 | 325 | 277 | 833 | |||||
Commercial and industrial-owner occupied | 163 | 136 | 1,177 | 30 | 49 | |||||
Total commercial and industrial | 394 | 346 | 1,502 | 307 | 882 | |||||
Commercial real estate | ||||||||||
Agricultural | 3 | 5 | 4 | 4 | 3 | |||||
Construction, acquisition and development | 55 | 170 | 244 | 583 | 480 | |||||
Commercial real estate | 208 | 50 | 135 | 4,212 | 29 | |||||
Total real estate | 266 | 225 | 383 | 4,799 | 512 | |||||
Consumer | ||||||||||
Consumer mortgages | 350 | 343 | 395 | 405 | 275 | |||||
Home equity | 130 | 258 | 79 | 215 | 729 | |||||
Credit cards | 270 | 195 | 285 | 218 | 224 | |||||
Total consumer | 750 | 796 | 759 | 838 | 1,228 | |||||
All other | 235 | 275 | 316 | 245 | 226 | |||||
Total recoveries | 1,645 | 1,642 | 2,960 | 6,189 | 2,848 | |||||
Net (charge-offs)/recoveries | $ (686) | $ (57) | $ 363 | $ 2,729 | $ 776 | |||||
BancorpSouth Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Sep-20 | Jun-20 | Mar-20 | Dec-19 | Sep-19 | |||||
ACQUIRED LOANS AND LEASES: | |||||||||
Loans and leases charged off: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | $ (70) | $ (1,086) | $ (10,562) | $ (429) | $ (33) | ||||
Commercial and industrial-owner occupied | (7) | - | (165) | (8) | - | ||||
Total commercial and industrial | (77) | (1,086) | (10,727) | (437) | (33) | ||||
Commercial real estate | |||||||||
Agricultural | - | (21) | - | (5) | - | ||||
Construction, acquisition and development | - | (9) | (3,052) | - | - | ||||
Commercial real estate | (583) | - | - | - | - | ||||
Total real estate | (583) | (30) | (3,052) | (5) | - | ||||
Consumer | |||||||||
Consumer mortgages | (11) | (11) | (167) | (39) | - | ||||
Home equity | - | - | - | - | - | ||||
Credit cards | - | - | - | - | - | ||||
Total consumer | (11) | (11) | (167) | (39) | - | ||||
All other | (140) | (108) | (210) | (183) | (47) | ||||
Total loans charged off | (811) | (1,235) | (14,156) | (664) | (80) | ||||
Recoveries: | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | 63 | 67 | 30 | 76 | 2 | ||||
Commercial and industrial-owner occupied | - | - | 2 | - | - | ||||
Total commercial and industrial | 63 | 67 | 32 | 76 | 2 | ||||
Commercial real estate | |||||||||
Agricultural | - | 1 | 2 | - | - | ||||
Construction, acquisition and development | - | 2 | 1 | 1 | - | ||||
Commercial real estate | 1 | - | - | - | - | ||||
Total real estate | 1 | 3 | 3 | 1 | - | ||||
Consumer | |||||||||
Consumer mortgages | 2 | 2 | 2 | 2 | 3 | ||||
Home equity | 2 | 1 | 1 | 1 | 2 | ||||
Credit cards | - | - | - | - | - | ||||
Total consumer | 4 | 3 | 3 | 3 | 5 | ||||
All other | 28 | 45 | 28 | 13 | 14 | ||||
Total recoveries | 96 | 118 | 66 | 93 | 21 | ||||
Net (charge-offs)/recoveries | $ (715) | $ (1,117) | $ (14,090) | $ (571) | $ (59) | ||||
BancorpSouth Bank | |||||||||
Selected Loan Data | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
Quarter Ended | |||||||||
Sep-20 | Jun-20 | Mar-20 | Dec-19 | Sep-19 | |||||
NON-PERFORMING ASSETS | |||||||||
NON-PERFORMING LOANS AND LEASES: | |||||||||
Nonaccrual Loans and Leases | |||||||||
Commercial and industrial | |||||||||
Commercial and industrial-non real estate | $ 17,936 | $ 16,124 | $ 16,589 | $ 11,105 | $ 10,430 | ||||
Commercial and industrial-owner occupied | 18,343 | 16,745 | 11,212 | 7,838 | 7,446 | ||||
Total commercial and industrial | 36,279 | 32,869 | 27,801 | 18,943 | 17,876 | ||||
Commercial real estate | |||||||||
Agricultural | 5,907 | 5,244 | 5,454 | 4,772 | 4,423 | ||||
Construction, acquisition and development | 10,434 | 9,715 | 13,899 | 6,225 | 2,231 | ||||
Commercial real estate | 32,554 | 45,047 | 29,697 | 16,199 | 16,823 | ||||
Total commercial real estate | 48,895 | 60,006 | 49,050 | 27,196 | 23,477 | ||||
Consumer | |||||||||
Consumer mortgages | 32,872 | 30,672 | 29,834 | 28,879 | 31,744 | ||||
Home equity | 3,325 | 2,584 | 2,597 | 2,993 | 2,767 | ||||
Credit cards | 144 | 90 | 122 | 63 | 85 | ||||
Total consumer | 36,341 | 33,346 | 32,553 | 31,935 | 34,596 | ||||
All other | 593 | 532 | 670 | 722 | 434 | ||||
Total nonaccrual loans and leases | $ 122,108 | $ 126,753 | $ 110,074 | $ 78,796 | $ 76,383 | ||||
Loans and Leases 90+ Days Past Due, Still Accruing: | 17,641 | 9,877 | 7,272 | 17,531 | 16,659 | ||||
Restructured Loans and Leases, Still Accruing | 11,154 | 11,575 | 11,284 | 15,184 | 15,033 | ||||
Total non-performing loans and leases | $ 150,903 | $ 148,205 | $ 128,630 | $ 111,511 | $ 108,075 | ||||
OTHER REAL ESTATE OWNED: | 6,397 | 7,164 | 9,200 | 6,746 | 7,929 | ||||
Total Non-performing Assets | $ 157,300 | $ 155,369 | $ 137,830 | $ 118,257 | $ 116,004 | ||||
BXS originated assets | $ 109,418 | $ 94,155 | $ 85,908 | $ 78,295 | $ 84,413 | ||||
Acquired assets | 47,882 | 61,214 | 51,922 | 39,962 | 31,591 | ||||
Total Non-performing Assets | $ 157,300 | $ 155,369 | $ 137,830 | $ 118,257 | $ 116,004 | ||||
Additions to Nonaccrual Loans and Leases During the Quarter | $ 19,973 | $ 36,619 | $ 47,523 | $ 25,147 | $ 26,331 | ||||
Loans and Leases 30-89 Days Past Due, Still Accruing: | |||||||||
BXS originated loans | $ 42,978 | $ 35,002 | $ 54,315 | $ 44,559 | $ 40,668 | ||||
Acquired loans | 5,694 | 10,450 | 14,405 | 23,054 | 16,741 | ||||
Total Loans and Leases 30-89 days past due, still accruing | $ 48,672 | $ 45,452 | $ 68,720 | $ 67,613 | $ 57,409 | ||||
BancorpSouth Bank | |||||||||||||||
Selected Loan Data | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
(Unaudited) | |||||||||||||||
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 | ||||||||
June 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 | $ 2,980,373 | $ - | $ 43,368 | $ 179 | $ - | $ 3,789 | $ 11,248 | $ 3,038,957 | |||||||
Commercial and industrial-owner occupied | 2,222,454 | - | 61,204 | - | - | 8,515 | 4,114 | 2,296,287 | |||||||
Total commercial and industrial | 5,202,827 | - | 104,572 | 179 | - | 12,304 | 15,362 | 5,335,244 | |||||||
Commercial real estate | |||||||||||||||
Agricultural | 316,390 | - | 14,159 | - | - | 714 | 2,352 | 333,615 | |||||||
Construction, acquisition and development | 1,626,162 | 2,741 | 20,890 | - | - | 3,122 | 5,763 | 1,658,678 | |||||||
Commercial real estate | 3,164,522 | - | 113,206 | - | - | 40,672 | 5,344 | 3,323,744 | |||||||
Total commercial real estate | 5,107,074 | 2,741 | 148,255 | - | - | 44,508 | 13,459 | 5,316,037 | |||||||
Consumer | |||||||||||||||
Consumer mortgages | 3,560,630 | - | 84,207 | - | - | 594 | 737 | 3,646,168 | |||||||
Home equity | 648,891 | - | 6,652 | - | - | - | - | 655,543 | |||||||
Credit cards | 86,592 | - | - | - | - | - | - | 86,592 | |||||||
Total consumer | 4,296,113 | - | 90,859 | - | - | 594 | 737 | 4,388,303 | |||||||
All other | 379,659 | 1,523 | 6,578 | - | - | - | 77 | 387,837 | |||||||
Total loans | $ 4,264 | $ 350,264 | $ 179 | $ - | $ 57,406 | $ 29,635 | $ 15,427,421 | ||||||||
BXS originated loans | $ 2,741 | $ 231,687 | $ 179 | $ - | $ 28,288 | $ - | $ 13,779,187 | ||||||||
Acquired loans* | 1,469,381 | 1,523 | 118,577 | - | - | 29,118 | 29,635 | 1,648,234 | |||||||
Total Loans | $ 4,264 | $ 350,264 | $ 179 | $ - | $ 57,406 | $ 29,635 | $ 15,427,421 | ||||||||
*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 | |||||||||
Sep-20 | Jun-20 | Mar-20 | Dec-19 | Sep-19 | |||||
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE: | |||||||||
Pass | $ 13,782,584 | ||||||||
Special Mention | - | 4,264 | 7,129 | 2,240 | 2,530 | ||||
Substandard | 372,483 | 350,264 | 323,697 | 298,491 | 280,059 | ||||
Doubtful | 178 | 179 | 191 | 194 | 194 | ||||
Loss | - | - | 667 | - | - | ||||
Impaired | 49,818 | 57,406 | 40,627 | 24,094 | 24,948 | ||||
Purchased Credit Deteriorated (Loss) | 27,313 | 29,635 | 30,732 | - | - | ||||
Purchased Credit Impaired | - | - | - | 25,685 | 30,468 | ||||
Total | $ 14,120,783 | ||||||||
BXS ORIGINATED LOAN PORTFOLIO BY INTERNALLY | |||||||||
ASSIGNED GRADE: | |||||||||
Pass | $ 11,901,311 | ||||||||
Special Mention | - | 2,741 | 2,045 | - | - | ||||
Substandard | 252,875 | 231,687 | 225,506 | 202,017 | 192,133 | ||||
Doubtful | 178 | 179 | 191 | 194 | 194 | ||||
Loss | - | - | - | - | - | ||||
Impaired | 30,909 | 28,288 | 22,356 | 17,110 | 24,379 | ||||
Purchased Credit Deteriorated (Loss) | - | - | - | - | - | ||||
Purchased Credit Impaired | - | - | - | - | - | ||||
Total | $ 12,118,017 | ||||||||
ACQUIRED LOAN PORTFOLIO BY INTERNALLY | |||||||||
ASSIGNED GRADE: | |||||||||
Pass | $ 1,285,483 | $ 1,469,381 | $ 1,670,986 | $ 1,658,643 | $ 1,881,273 | ||||
Special Mention | - | 1,523 | 5,084 | 2,240 | 2,530 | ||||
Substandard | 119,608 | 118,577 | 98,191 | 96,474 | 87,926 | ||||
Doubtful | - | - | - | - | - | ||||
Loss | - | - | 667 | - | - | ||||
Impaired | 18,909 | 29,118 | 18,271 | 6,984 | 569 | ||||
Purchased Credit Deteriorated (Loss) | 27,313 | 29,635 | 30,732 | - | - | ||||
Purchased Credit Impaired | - | - | - | 25,685 | 30,468 | ||||
Total | $ 1,451,313 | $ 1,648,234 | $ 1,823,931 | $ 1,790,026 | $ 2,002,766 | ||||
BancorpSouth Bank | |||||||||
Geographical Information | |||||||||
(Dollars in thousands) | |||||||||
(Unaudited) | |||||||||
September 30, 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 | $ 275,711 | $ 237,417 | $ 352,908 | $ 739,580 | $ 78,753 | $ 189,569 | $ 4,844 | $ 2,937,608 | |
Commercial and industrial-owner occupied | 265,239 | 185,519 | 238,839 | 636,024 | 62,987 | 128,232 | 777,603 | 2,565 | 2,297,008 |
Total commercial and industrial | 540,950 | 422,936 | 591,747 | 1,375,604 | 141,740 | 317,801 | 1,836,429 | 7,409 | 5,234,616 |
Commercial real estate | |||||||||
Agricultural | 26,136 | 70,808 | 24,489 | 71,275 | 7,362 | 10,925 | 122,401 | 443 | 333,839 |
Construction, acquisition and development | 173,894 | 49,582 | 83,313 | 310,262 | 22,506 | 104,294 | 956,179 | - | 1,700,030 |
Commercial real estate | 333,696 | 338,794 | 304,446 | 659,031 | 230,587 | 222,234 | 1,141,171 | - | 3,229,959 |
Total commercial real estate | 533,726 | 459,184 | 412,248 | 1,040,568 | 260,455 | 337,453 | 2,219,751 | 443 | 5,263,828 |
Consumer | |||||||||
Consumer mortgages | 584,926 | 335,889 | 344,462 | 828,965 | 109,091 | 340,804 | 1,093,636 | 66,717 | 3,704,490 |
Home equity | 102,779 | 46,382 | 79,574 | 227,479 | 16,660 | 145,480 | 40,354 | - | 658,708 |
Credit cards | - | - | - | - | - | - | - | 85,760 | 85,760 |
Total consumer | 687,705 | 382,271 | 424,036 | 1,056,444 | 125,751 | 486,284 | 1,133,990 | 152,477 | 4,448,958 |
All other | 61,241 | 42,561 | 34,041 | 121,036 | 3,818 | 19,284 | 88,622 | 9,730 | 380,333 |
Total loans | $ 531,764 | $ 170,059 | |||||||
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 | $ 582 | $ 1,363 | $ 2,160 | $ 1,742 | $ 1,799 | $ 595 | $ 10,611 | $ 225 | $ 19,077 |
Commercial and industrial-owner occupied | 2,921 | 2,373 | 677 | 3,644 | 166 | - | 14,201 | - | 23,982 |
Total commercial and industrial | 3,503 | 3,736 | 2,837 | 5,386 | 1,965 | 595 | 24,812 | 225 | 43,059 |
Commercial real estate | |||||||||
Agricultural | 279 | 618 | 166 | 999 | - | - | 3,850 | - | 5,912 |
Construction, acquisition and development | 161 | 166 | 2,573 | 208 | - | 315 | 7,270 | - | 10,693 |
Commercial real estate | 3,388 | 33 | 5,265 | 876 | - | 95 | 24,052 | - | 33,709 |
Total commercial real estate | 3,828 | 817 | 8,004 | 2,083 | - | 410 | 35,172 | - | 50,314 |
Consumer | |||||||||
Consumer mortgages | 9,198 | 4,069 | 4,224 | 13,572 | 1,032 | 6,456 | 11,741 | 1,912 | 52,204 |
Home equity | 363 | 258 | 395 | 996 | 237 | 1,228 | 387 | - | 3,864 |
Credit cards | - | - | - | - | - | - | - | 817 | 817 |
Total consumer | 9,561 | 4,327 | 4,619 | 14,568 | 1,269 | 7,684 | 12,128 | 2,729 | 56,885 |
All other | 197 | 2 | 52 | 95 | - | 16 | 279 | 4 | 645 |
Total loans | $ 17,089 | $ 8,882 | $ 15,512 | $ 22,132 | $ 3,234 | $ 8,705 | $ 72,391 | $ 2,958 | $ 150,903 |
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 | N/A | ||||||||
Total commercial real estate | |||||||||
Consumer | |||||||||
Consumer mortgages | |||||||||
Home equity | N/A | ||||||||
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 to Date | ||||||||||||
Sep-20 | Jun-20 | Mar-20 | Dec-19 | Sep-19 | Sep-20 | Sep-19 | |||||||
NONINTEREST REVENUE: | |||||||||||||
Mortgage banking excl. MSR and MSR Hedge market value adj | $ 26,667 | $ 31,930 | $ 20,553 | $ 6,938 | $ 11,283 | $ 79,150 | $ 27,359 | ||||||
MSR and MSR Hedge market value adjustment | 430 | (2,373) | (11,083) | 3,164 | (3,994) | (13,026) | (17,679) | ||||||
Credit card, debit card and merchant fees | 9,938 | 9,080 | 9,176 | 9,836 | 9,778 | 28,194 | 28,820 | ||||||
Deposit service charges | 8,892 | 7,647 | 11,682 | 12,193 | 11,939 | 28,221 | 33,822 | ||||||
Securities gains (losses), net | 18 | 62 | (85) | (41) | 117 | (5) | 215 | ||||||
Insurance commissions | 32,750 | 33,118 | 29,603 | 27,648 | 31,512 | 95,471 | 95,643 | ||||||
Trust income | 3,902 | 4,064 | 4,013 | 3,951 | 4,488 | 11,979 | 12,091 | ||||||
Annuity fees | 53 | 54 | 55 | 136 | 184 | 162 | 694 | ||||||
Brokerage commissions and fees | 2,516 | 2,303 | 2,502 | 2,530 | 1,979 | 7,321 | 5,407 | ||||||
Bank-owned life insurance | 1,902 | 1,855 | 1,999 | 3,427 | 2,529 | 5,756 | 6,205 | ||||||
Other miscellaneous income | 2,856 | 3,518 | 8,081 | 4,915 | 5,617 | 14,455 | 13,407 | ||||||
Total noninterest revenue | $ 89,924 | $ 91,258 | $ 76,496 | $ 74,697 | $ 75,432 | ||||||||
NONINTEREST EXPENSE: | |||||||||||||
Salaries and employee benefits | $ 104,219 | $ 108,103 | $ 108,272 | $ 97,137 | $ 101,154 | ||||||||
Occupancy, net of rental income | 13,053 | 12,890 | 12,708 | 12,267 | 12,323 | 38,651 | 35,862 | ||||||
Equipment | 4,519 | 4,762 | 4,649 | 4,725 | 4,676 | 13,930 | 12,987 | ||||||
Deposit insurance assessments | 1,522 | 1,962 | 1,546 | 2,200 | 2,038 | 5,030 | 6,943 | ||||||
Advertising | 826 | 918 | 1,099 | 1,153 | 1,382 | 2,843 | 3,756 | ||||||
Foreclosed property expense | (278) | 1,306 | 924 | 855 | 870 | 1,952 | 2,013 | ||||||
Telecommunications | 1,462 | 1,512 | 1,461 | 1,504 | 1,400 | 4,435 | 4,159 | ||||||
Public relations | 1,130 | 459 | 680 | 880 | 1,069 | 2,269 | 2,768 | ||||||
Data processing | 9,477 | 9,693 | 9,646 | 10,041 | 9,066 | 28,816 | 25,476 | ||||||
Computer software | 4,779 | 4,979 | 4,315 | 4,478 | 3,825 | 14,073 | 11,359 | ||||||
Amortization of intangibles | 2,357 | 2,355 | 2,394 | 2,508 | 2,117 | 7,106 | 6,610 | ||||||
Legal | (316) | 1,375 | 898 | 854 | 786 | 1,957 | 2,701 | ||||||
Merger expense | 129 | 510 | 4,494 | 5,782 | 4,062 | 5,133 | 8,089 | ||||||
Postage and shipping | 1,199 | 1,198 | 1,441 | 1,353 | 1,281 | 3,838 | 3,910 | ||||||
Other miscellaneous expense | 11,427 | 10,482 | 13,479 | 16,614 | 13,565 | 35,388 | 41,260 | ||||||
Total noninterest expense | $ 155,505 | $ 162,504 | $ 168,006 | $ 162,351 | $ 159,614 | ||||||||
INSURANCE COMMISSIONS: | |||||||||||||
Property and casualty commissions | $ 24,060 | $ 23,644 | $ 21,246 | $ 19,994 | $ 22,643 | $ 68,950 | $ 67,310 | ||||||
Life and health commissions | 6,072 | 6,771 | 6,175 | 5,979 | 6,116 | 19,018 | 19,453 | ||||||
Risk management income | 609 | 540 | 532 | 667 | 564 | 1,681 | 1,773 | ||||||
Other | 2,009 | 2,163 | 1,650 | 1,008 | 2,189 | 5,822 | 7,107 | ||||||
Total insurance commissions | $ 32,750 | $ 33,118 | $ 29,603 | $ 27,648 | $ 31,512 | $ 95,471 | $ 95,643 | ||||||
BancorpSouth Bank | |||||
Selected Additional Information | |||||
(Dollars in thousands) | |||||
(Unaudited) | |||||
Quarter Ended | |||||
Sep-20 | Jun-20 | Mar-20 | Dec-19 | Sep-19 | |
MORTGAGE SERVICING RIGHTS: | |||||
Fair value, beginning of period | $ 40,821 | $ 42,243 | $ 57,109 | $ 51,492 | $ 55,294 |
Additions to mortgage servicing rights: | |||||
Originations of servicing assets | 7,041 | 4,297 | 3,079 | 4,025 | 3,410 |
Changes in fair value: | |||||
Due to payoffs/paydowns | (3,198) | (3,144) | (2,506) | (2,323) | (2,542) |
Due to change in valuation inputs or | |||||
assumptions used in the valuation model | 280 | (2,575) | (15,438) | 3,915 | (4,669) |
Other changes in fair value | - | - | (1) | - | (1) |
Fair value, end of period | $ 44,944 | $ 40,821 | $ 42,243 | $ 57,109 | $ 51,492 |
MORTGAGE BANKING REVENUE: | |||||
Production revenue: | |||||
Origination | $ 23,632 | $ 30,194 | $ 17,906 | $ 4,326 | $ 8,922 |
Servicing | 6,233 | 4,880 | 5,153 | 4,935 | 4,903 |
Payoffs/Paydowns | (3,198) | (3,144) | (2,506) | (2,323) | (2,542) |
Total production revenue | 26,667 | 31,930 | 20,553 | 6,938 | 11,283 |
Market value adjustment on MSR | 280 | (2,575) | (15,438) | 3,915 | (4,669) |
Market value adjustment on MSR Hedge | 150 | 202 | 4,355 | (751) | 675 |
Total mortgage banking revenue | $ 27,097 | $ 29,557 | $ 9,470 | $ 10,102 | $ 7,289 |
Mortgage loans serviced | $ 7,000,425 | $ 6,999,383 | $ 6,799,186 | ||
MSR/mtg loans serviced | |||||
AVAILABLE-FOR-SALE SECURITIES, at fair value | |||||
U.S. Government agencies | $ 3,348,206 | $ 3,532,905 | $ 2,323,159 | ||
U.S. Government agency issued residential | |||||
mortgage-back securities | 1,625,325 | 699,864 | 132,902 | 133,375 | 128,677 |
U.S. Government agency issued commercial | |||||
mortgage-back securities | 758,116 | 759,980 | 595,885 | 609,009 | 115,228 |
Obligations of states and political subdivisions | 141,896 | 163,121 | 206,648 | 140,273 | 199,382 |
Corporate bonds | 17,990 | 2,000 | - | - | - |
Total available-for-sale securities | $ 4,973,171 | $ 4,468,340 | $ 2,766,446 | ||
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 to Date | ||||||||||||||
9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 9/30/2020 | 9/30/2019 | |||||||||
Net income | $ 73,825 | $ 61,160 | $ 24,261 | $ 65,849 | $ 63,757 | $ 159,246 | $ 168,412 | ||||||||
Plus: | Merger expense, net of tax | 97 | 383 | 3,372 | 4,339 | 3,049 | 3,852 | 6,072 | |||||||
Initial provision for acquired loans, | |||||||||||||||
net of tax | - | - | 751 | - | - | 751 | |||||||||
Less: | Security gains(losses), net of tax | 13 | 47 | (64) | (30) | 88 | (4) | 162 | |||||||
Net operating income | $ 73,909 | $ 61,496 | $ 28,448 | $ 70,218 | $ 66,718 | $ 163,853 | $ 174,322 | ||||||||
Less: | Preferred dividends | 2,372 | 2,372 | 2,372 | - | - | 7,116 | - | |||||||
Net operating income available to | |||||||||||||||
common shareholders | $ 71,537 | $ 59,124 | $ 26,076 | $ 70,218 | $ 66,718 | $ 156,737 | $ 174,322 | ||||||||
Net operating income | $ 73,909 | $ 61,496 | $ 28,448 | $ 70,218 | $ 66,718 | $ 163,853 | $ 174,322 | ||||||||
Less: | MSR market value adjustment, net of tax | 323 | (1,781) | (8,318) | 2,374 | (2,998) | (9,776) | (13,268) | |||||||
Net operating income-excluding MSR | $ 73,586 | $ 63,277 | $ 36,766 | $ 67,844 | $ 69,716 | $ 173,629 | $ 187,590 | ||||||||
Less: | Preferred dividends | 2,372 | 2,372 | 2,372 | - | - | 7,116 | - | |||||||
Net operating income available to common | |||||||||||||||
shareholders-excluding MSR | $ 71,214 | $ 60,905 | $ 34,394 | $ 67,844 | $ 69,716 | $ 166,513 | $ 187,590 | ||||||||
Reconciliation of Net Income to Pre-Tax Pre-Provision Net Revenue | |||||||||||||||
Net income | $ 73,825 | $ 61,160 | $ 24,261 | $ 65,849 | $ 63,757 | $ 159,246 | $ 168,412 | ||||||||
Plus: | Provision for credit losses | 15,000 | 20,000 | 46,000 | - | 500 | 81,000 | 1,500 | |||||||
Merger expense | 129 | 510 | 4,494 | 5,782 | 4,062 | 5,133 | 8,089 | ||||||||
Income tax expense | 21,525 | 18,164 | 5,759 | 17,271 | 18,160 | 45,448 | 47,986 | ||||||||
Less: | Security gains(losses) | 18 | 62 | (85) | (41) | 117 | (5) | 215 | |||||||
MSR market value adjustment | 430 | (2,373) | (11,083) | 3,164 | (3,994) | (13,026) | (17,679) | ||||||||
Pre-tax pre-provision net revenue | $ 110,031 | $ 102,145 | $ 91,682 | $ 85,779 | $ 90,356 | $ 303,858 | $ 243,451 | ||||||||
Reconciliation of Total Operating Expense to Total Noninterest Expense: | |||||||||||||||
Total noninterest expense | $ 155,505 | $ 162,504 | $ 168,006 | $ 162,351 | $ 159,614 | $ 486,015 | $ 467,256 | ||||||||
Less: | Merger expense | 129 | 510 | 4,494 | 5,782 | 4,062 | 5,133 | 8,089 | |||||||
Total operating expense | $ 155,376 | $ 161,994 | $ 163,512 | $ 156,569 | $ 155,552 | $ 480,882 | $ 459,167 | ||||||||
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 to Date | |||||||||||||||||||||||||
9/30/2020 | 6/30/2020 | 3/31/2020 | 12/31/2019 | 9/30/2019 | 9/30/2020 | 9/30/2019 | ||||||||||||||||||||
Tangible assets | ||||||||||||||||||||||||||
Total assets | $ 23,236,176 | $ 21,032,524 | $ 19,850,225 | |||||||||||||||||||||||
Less: | Goodwill | 847,531 | 847,984 | 848,242 | 825,679 | 822,093 | 847,531 | 822,093 | ||||||||||||||||||
Other identifiable intangible assets | 54,757 | 56,989 | 59,345 | 60,008 | 61,100 | 54,757 | 61,100 | |||||||||||||||||||
Total tangible assets | $ 22,331,203 | $ 20,124,937 | $ 18,967,032 | |||||||||||||||||||||||
Less: | PPP loans | 1,212,246 | 1,192,715 | - | - | - | 1,212,246 | - | ||||||||||||||||||
Total tangible assets-excluding PPP loans | $ 21,138,488 | $ 20,124,937 | $ 18,967,032 | |||||||||||||||||||||||
PERIOD END BALANCES: | ||||||||||||||||||||||||||
Tangible shareholders' equity | ||||||||||||||||||||||||||
Total shareholders' equity | $ 2,782,539 | $ 2,732,687 | $ 2,681,904 | $ 2,685,017 | $ 2,489,427 | $ 2,782,539 | $ 2,489,427 | |||||||||||||||||||
Less: | Goodwill | 847,531 | 847,984 | 848,242 | 825,679 | 822,093 | 847,531 | 822,093 | ||||||||||||||||||
Other identifiable intangible assets | 54,757 | 56,989 | 59,345 | 60,008 | 61,100 | 54,757 | 61,100 | |||||||||||||||||||
Total tangible shareholders' equity | $ 1,880,251 | $ 1,827,714 | $ 1,774,317 | $ 1,799,330 | $ 1,606,234 | $ 1,880,251 | $ 1,606,234 | |||||||||||||||||||
Less: | Preferred stock | 166,993 | 166,993 | 166,993 | 167,021 | - | 166,993 | - | ||||||||||||||||||
Total tangible common shareholders' equity | $ 1,713,258 | $ 1,660,721 | $ 1,607,324 | $ 1,632,309 | $ 1,606,234 | $ 1,713,258 | $ 1,606,234 | |||||||||||||||||||
AVERAGE BALANCES: | ||||||||||||||||||||||||||
Tangible shareholders' equity | ||||||||||||||||||||||||||
Total shareholders' equity | $ 2,729,870 | $ 2,738,434 | $ 2,658,699 | $ 2,572,750 | $ 2,378,882 | $ 2,709,077 | $ 2,297,322 | |||||||||||||||||||
Less: | Goodwill | 847,744 | 848,160 | 844,635 | 823,812 | 761,084 | 846,850 | 731,043 | ||||||||||||||||||
Other identifiable intangible assets | 56,045 | 58,280 | 58,805 | 60,559 | 59,253 | 57,704 | 52,842 | |||||||||||||||||||
Total tangible shareholders' equity | $ 1,826,081 | $ 1,831,994 | $ 1,755,259 | $ 1,688,379 | $ 1,558,545 | $ 1,804,523 | $ 1,513,437 | |||||||||||||||||||
Less: | Preferred stock | 166,993 | 166,993 | 167,021 | 74,717 | - | 167,002 | - | ||||||||||||||||||
Total tangible common shareholders' equity | $ 1,659,088 | $ 1,665,001 | $ 1,588,238 | $ 1,613,662 | $ 1,558,545 | $ 1,637,521 | $ 1,513,437 | |||||||||||||||||||
Total average assets | $ 22,707,686 | $ 21,189,637 | $ 19,170,926 | |||||||||||||||||||||||
Total shares of common stock outstanding | 102,558,459 | 102,566,301 | 102,632,484 | 104,522,804 | 104,775,876 | 102,558,459 | 104,775,876 | |||||||||||||||||||
Average shares outstanding-diluted | 102,839,749 | 102,827,225 | 104,733,897 | 105,144,032 | 101,493,247 | 103,466,957 | 100,699,510 | |||||||||||||||||||
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) | $ 16.71 | $ 16.19 | $ 15.66 | $ 15.62 | $ 15.33 | $ 16.71 | $ 15.33 | |||||||||||||||||||
Operating earnings per common share (14) | $ 0.70 | $ 0.57 | $ 0.25 | $ 0.67 | $ 0.66 | $ 1.51 | $ 1.73 | |||||||||||||||||||
Operating earnings per common share-excluding MSR (15) | $ 0.69 | $ 0.59 | $ 0.33 | $ 0.65 | $ 0.69 | $ 1.61 | $ 1.86 | |||||||||||||||||||
(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. | ||||||||||||||||||||||||
View original content:http://www.prnewswire.com/news-releases/bancorpsouth-announces-third-quarter-2020-financial-results-301155052.html
SOURCE BancorpSouth Bank
FAQ
What were BancorpSouth's earnings for Q3 2020?
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