BancorpSouth Announces Third Quarter 2020 Financial Results
10/19/2020 - 04:30 PM
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 $0.69 $71.2 million $0.69 Recorded provision for credit losses of $15.0 million $1.4 million Generated a record $110.0 million Generated total deposit and customer repo growth of $174.9 million Mortgage production volume of $937.7 million $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 $15.0 million $110.0 million
"As we look more specifically at our third quarter performance, our mortgage team had another outstanding quarter generating production volume of over $937.7 million $26.7 million $174.9 million
Earnings Summary
The Company reported net income available to common shareholders of $71.5 million $0.69 $63.8 million $0.63 $58.8 million $0.57 $71.2 million $0.69 $69.7 million $0.69 $60.9 million $0.59
The Company reported pre-tax pre-provision net revenue of $110.0 million $90.4 million $102.1 million
Net Interest Revenue
Net interest revenue was $175.9 million $166.6 million $170.6 million
The $1.2 billion
Balance Sheet Activity
Loans and leases, net of unearned income, decreased $99.7 million $174.9 million $1.2 billion
Provision for Credit Losses and Allowance for Credit Losses
Earnings for the third quarter of 2020 reflect a provision for credit losses of $15.0 million $0.5 million $20.0 million $1.4 million $0.7 million $1.2 million $250.6 million September 30, 2020 , compared with $116.9 million September 30, 2019 , and $237.0 million June 30, 2020 . The allowance for credit losses coverage, excluding the impact of PPP loans, was 1.78 percent at September 30 , 2020.
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 $62.6 million $22.6 million $40.0 million January 1, 2020 .
Total non-performing assets were $157.3 million September 30, 2020 , compared with $116.0 million September 30, 2019 , and $155.4 million June 30 , 2020. Other real estate owned was $6.4 million September 30, 2020 , compared with $7.9 million September 30, 2019 and $7.2 million June 30, 2020 .
Noninterest Revenue
Noninterest revenue was $89.9 million $75.4 million $91.3 million $0.4 million $4.0 million $2.4 million
Mortgage production and servicing revenue was $26.7 million $11.3 million $31.9 million $937.7 million $536.1 million $989.0 million $568.4 million $353.9 million $522.6 million $218.0 million $112.1 million $251.7 million
Credit card, debit card, and merchant fee revenue was $9.9 million $9.8 million $9.1 million $8.9 million $11.9 million $7.6 million $6.5 million $6.7 million $6.4 million $32.8 million $31.5 million $33.1 million $4.8 million $8.1 million $5.4 million
Noninterest Expense
Noninterest expense for the third quarter of 2020 was $155.5 million $159.6 million $162.5 million $104.2 million $101.2 million $108.1 million $13.1 million $12.3 million $12.9 million $32.2 million $39.4 million $34.8 million $0.1 million $4.1 million $0.5 million
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 $1.2 billion September 30, 2020 .
In November 2019 , the Company completed an underwritten public offering of $300 $172.5 million of its 5.50 percent Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share (the "Series A Preferred Stock"). For additional details regarding the terms of the Notes, including those related to interest rates and interest payment dates, redemption, seniority, and maturity, and the terms of the Series A Preferred Stock, including those related to dividends and dividend payment dates, redemption, seniority, and maturity, please refer to the offering circulars related to each offering that the Company filed with the Federal Deposit Insurance Corporation ("FDIC") on November 15, 2019.
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 $396.9 million $185.7 million $369.3 million $13.0 million January 2 , 2020. The purchase accounting for this transaction is considered provisional as management continues to identify and assess information regarding the nature of the acquired assets and liabilities and reviews the associated valuation assumptions and methodologies.
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 $24 billion Alabama , Arkansas , Florida , Louisiana , Mississippi , Missouri , Tennessee and Texas , including an insurance location in Illinois. BancorpSouth is committed to a culture of respect, diversity, and inclusion in both its workplace and communities. To learn more, visit our Community Commitment page at www.bancorpsouth.com . Like us on Facebook; follow us on Twitter: @MyBXS; or connect with us through LinkedIn.
Forward-Looking Statements
Certain statements 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
1.26%
1.08%
0.46%
1.29%
1.32%
0.95%
1.21%
Operating return on average assets-excluding MSR*
1.26%
1.12%
0.70%
1.33%
1.44%
1.03%
1.35%
Return on average shareholders' equity
10.76%
8.98%
3.67%
10.15%
10.63%
7.85%
9.80%
Operating return on average shareholders' equity-excluding MSR*
10.72%
9.29%
5.56%
10.46%
11.63%
8.56%
10.92%
Return on average common shareholders' equity
11.09%
9.19%
3.53%
10.46%
10.63%
7.99%
9.80%
Operating return on average common shareholders' equity-excluding MSR*
11.05%
9.53%
5.55%
10.78%
11.63%
8.75%
10.92%
Return on average tangible equity*
16.08%
13.43%
5.56%
15.47%
16.23%
11.79%
14.88%
Operating return on average tangible equity-excluding MSR*
16.03%
13.89%
8.42%
15.94%
17.75%
12.85%
16.57%
Return on average tangible common equity*
17.13%
14.20%
5.54%
16.19%
16.23%
12.41%
14.88%
Operating return on average tangible common equity-excluding MSR*
17.08%
14.71%
8.71%
16.68%
17.75%
13.58%
16.57%
Pre-tax pre-provision net revenue to total average assets*
1.88%
1.81%
1.74%
1.68%
1.87%
1.81%
1.75%
Noninterest income to average assets
1.53%
1.62%
1.45%
1.46%
1.56%
1.54%
1.48%
Noninterest expense to average assets
2.65%
2.88%
3.19%
3.18%
3.30%
2.90%
3.36%
Net interest margin-fully taxable equivalent
3.31%
3.35%
3.54%
3.76%
3.88%
3.39%
3.87%
Net interest margin-fully taxable equivalent, excluding net accretion
on acquired loans and leases
3.23%
3.30%
3.48%
3.61%
3.76%
3.33%
3.76%
Net interest rate spread
3.06%
3.08%
3.24%
3.44%
3.56%
3.12%
3.56%
Efficiency ratio (tax equivalent)*
58.36%
61.89%
68.65%
65.92%
65.68%
62.81%
67.90%
Operating efficiency ratio-excluding MSR (tax equivalent)*
58.41%
61.16%
63.89%
64.39%
63.01%
61.12%
65.07%
Loan/deposit ratio
78.96%
80.44%
84.23%
85.86%
88.11%
78.96%
88.11%
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
75.99%
90.91%
77.21%
130.38%
124.62%
75.99%
124.62%
Market value to common book value (avg)
83.75%
84.79%
107.86%
128.18%
120.12%
90.07%
122.35%
Market value to common tangible book value
116.01%
140.44%
120.81%
201.13%
193.15%
116.01%
193.15%
Market value to common tangible book value (avg)
127.86%
130.99%
168.76%
197.74%
186.17%
137.50%
189.63%
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)
0.04%
0.03%
0.39%
(0.06% )
(0.02% )
0.15%
0.05%
Provision for credit losses to average loans and leases (annualized)
0.39%
0.53%
1.30%
0.00%
0.01%
0.73%
0.01%
Allowance for credit losses to net loans and leases
1.64%
1.54%
1.53%
0.85%
0.83%
1.64%
0.83%
Allowance for credit losses to net loans and leases, excluding PPP loans
1.78%
1.67%
1.53%
0.85%
0.83%
1.78%
0.83%
Allowance for credit losses to non-performing loans and leases
166.08%
159.93%
169.63%
106.78%
108.17%
166.08%
108.17%
Allowance for credit losses to non-performing assets
159.33%
152.56%
158.31%
100.68%
100.78%
159.33%
100.78%
Non-performing loans and leases to net loans and leases
0.98%
0.96%
0.90%
0.79%
0.77%
0.98%
0.77%
Non-performing loans and leases to net loans and leases, excluding
acquired loans and leases
0.74%
0.63%
0.64%
0.65%
0.66%
0.74%
0.66%
Non-performing assets to net loans and leases
1.03%
1.01%
0.97%
0.84%
0.82%
1.03%
0.82%
Non-performing assets to net loans and leases, excluding
acquired loans and leases
0.78%
0.68%
0.68%
0.68%
0.69%
0.78%
0.69%
Equity Ratios:
Total shareholders' equity to total assets
11.81%
11.76%
12.75%
12.75%
12.54%
11.81%
12.54%
Total common shareholders' equity to total assets
11.10%
11.04%
11.96%
11.96%
12.54%
11.10%
12.54%
Tangible shareholders' equity to tangible assets*
8.30%
8.18%
8.82%
8.92%
8.47%
8.30%
8.47%
Tangible shareholders' equity to tangible assets-excluding PPP loans*
8.77%
8.65%
8.82%
8.92%
8.47%
8.77%
8.47%
Tangible common shareholders' equity to tangible assets*
7.56%
7.44%
7.99%
8.09%
8.47%
7.56%
8.47%
Tangible common shareholders' equity to tangible assets-excluding PPP loans*
7.99%
7.86%
7.99%
8.09%
8.47%
7.99%
8.47%
Capital Adequacy:
Common Equity Tier 1 capital
10.64%
10.21%
10.11%
10.57%
10.54%
10.64%
10.54%
Tier 1 capital
11.65%
11.22%
11.13%
11.60%
10.54%
11.65%
10.54%
Total capital
14.20%
13.79%
13.75%
14.17%
11.28%
14.20%
11.28%
Tier 1 leverage capital
8.59%
8.54%
8.90%
9.69%
9.14%
8.59%
9.14%
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
26.56%
32.29%
88.20%
29.43%
29.36%
37.64%
31.31%
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
4.54%
4.59%
5.00%
5.13%
5.16%
4.70%
5.13%
Loans, loans held for sale, and leases net of unearned income, excluding
net accretion on acquired loans and leases
4.44%
4.53%
4.93%
4.95%
5.02%
4.62%
4.99%
Loans, loans held for sale, and leases net of unearned income, excluding
net accretion on acquired loans and leases - excluding PPP loans
4.55%
4.67%
4.93%
4.95%
5.02%
4.72%
4.99%
PPP loans
3.11%
2.50%
N/A
N/A
N/A
2.84%
N/A
Available-for-sale securities:
Taxable
1.64%
1.95%
1.99%
2.00%
2.13%
1.85%
2.09%
Tax-exempt
3.67%
3.86%
4.44%
4.69%
5.56%
3.97%
4.85%
Short-term, FHLB and other equity investments
0.19%
0.20%
1.53%
1.95%
2.41%
0.47%
2.50%
Total interest earning assets and revenue
3.77%
3.87%
4.27%
4.48%
4.63%
3.96%
4.61%
Deposits
0.44%
0.50%
0.67%
0.68%
0.71%
0.53%
0.68%
Demand - interest bearing
0.53%
0.61%
0.84%
0.88%
0.94%
0.66%
0.90%
Savings
0.18%
0.18%
0.26%
0.28%
0.28%
0.20%
0.29%
Other time
1.41%
1.54%
1.64%
1.68%
1.67%
1.53%
1.58%
Total interest bearing deposits
0.65%
0.74%
0.92%
0.96%
0.99%
0.77%
0.95%
Short-term borrowings
0.25%
0.39%
1.25%
1.51%
1.90%
0.63%
2.07%
Total interest bearing deposits and short-term borrowings
0.63%
0.71%
0.95%
1.01%
1.07%
0.76%
1.04%
Junior subordinated debt
4.24%
4.18%
4.42%
4.17%
N/A
4.44%
N/A
Long-term debt
4.85%
4.81%
4.96%
4.83%
4.93%
4.87%
4.89%
Total interest bearing liabilities and expense
0.71%
0.79%
1.03%
1.04%
1.07%
0.84%
1.05%
Interest bearing liabilities to interest earning assets
65.61%
66.65%
70.81%
69.37%
70.15%
67.58%
70.58%
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 $1.21 2 billion and $1.19 3 billion in PPP loans at September 30, 2020 and June 30, 2020.
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
$ 23,318,877
$ 22,707,686
$ 21,189,637
$ 20,243,023
$ 19,170,926
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
$ 23,318,877
$ 22,707,686
$ 21,189,637
$ 20,243,023
$ 19,170,926
*Includes $1.20 7 billion and $975.0 million in PPP loans for the quarter ended September 30, 2020 and June 30, 2020.
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
$ 175,810
$ 173,164
$ 177,019
$ 182,269
$ 178,729
$ 525,993
$ 515,156
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
$ 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
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
$ 15,369,684
$ 15,114,732
$ 14,226,788
$ 14,061,118
$ 13,726,755
Ratio:
Net charge-offs(recoveries) to average loans (annualized)
0.04%
0.03%
0.39%
(0.06% )
(0.02% )
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
$ 14,877,943
$ -
$ 372,483
$ 178
$ -
$ 49,818
$ 27,313
$ 15,327,735
BXS originated loans
$ 13,592,460
$ -
$ 252,875
$ 178
$ -
$ 30,909
$ -
$ 13,876,422
Acquired loans*
1,285,483
-
119,608
-
-
18,909
27,313
1,451,313
Total Loans
$ 14,877,943
$ -
$ 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
$ 14,985,673
$ 4,264
$ 350,264
$ 179
$ -
$ 57,406
$ 29,635
$ 15,427,421
BXS originated loans
$ 13,516,292
$ 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
$ 14,985,673
$ 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
$ 14,877,943
$ 14,985,673
$ 13,821,602
$ 13,738,979
$ 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
$ 15,327,735
$ 15,427,421
$ 14,224,645
$ 14,089,683
$ 14,120,783
BXS ORIGINATED LOAN PORTFOLIO BY INTERNALLY
ASSIGNED GRADE:
Pass
$ 13,592,460
$ 13,516,292
$ 12,150,616
$ 12,080,336
$ 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
$ 13,876,422
$ 13,779,187
$ 12,400,714
$ 12,299,657
$ 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
$ 1,058,826
$ 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
$ 1,823,622
$ 1,306,952
$ 1,462,072
$ 3,593,652
$ 531,764
$ 1,160,822
$ 5,278,792
$ 170,059
$ 15,327,735
Loan growth, excluding loans acquired during
the quarter (annualized)
(4.20% )
(6.56% )
(10.84% )
(12.51% )
(7.10% )
1.23%
8.75%
(18.27% )
(2.57% )
Loan growth, excluding PPP loans (annualized)
(5.32% )
(6.83% )
(11.42% )
(12.95% )
(7.59% )
0.91%
8.29%
(17.53% )
(3.07% )
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
0.21%
0.57%
0.61%
0.24%
2.28%
0.31%
1.00%
4.64%
0.65%
Commercial and industrial-owner occupied
1.10%
1.28%
0.28%
0.57%
0.26%
0.00%
1.83%
0.00%
1.04%
Total commercial and industrial
0.65%
0.88%
0.48%
0.39%
1.39%
0.19%
1.35%
3.04%
0.82%
Commercial real estate
Agricultural
1.07%
0.87%
0.68%
1.40%
0.00%
0.00%
3.15%
0.00%
1.77%
Construction, acquisition and development
0.09%
0.33%
3.09%
0.07%
0.00%
0.30%
0.76%
N/A
0.63%
Commercial real estate
1.02%
0.01%
1.73%
0.13%
0.00%
0.04%
2.11%
N/A
1.04%
Total commercial real estate
0.72%
0.18%
1.94%
0.20%
0.00%
0.12%
1.58%
0.00%
0.96%
Consumer
Consumer mortgages
1.57%
1.21%
1.23%
1.64%
0.95%
1.89%
1.07%
2.87%
1.41%
Home equity
0.35%
0.56%
0.50%
0.44%
1.42%
0.84%
0.96%
N/A
0.59%
Credit cards
N/A
N/A
N/A
N/A
N/A
N/A
N/A
0.95%
0.95%
Total consumer
1.39%
1.13%
1.09%
1.38%
1.01%
1.58%
1.07%
1.79%
1.28%
All other
0.32%
0.00%
0.15%
0.08%
0.00%
0.08%
0.31%
0.04%
0.17%
Total loans
0.94%
0.68%
1.06%
0.62%
0.61%
0.75%
1.37%
1.74%
0.98%
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
$ 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
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
$ 486,015
$ 467,256
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
$ 7,218,090
$ 7,000,425
$ 6,999,383
$ 6,898,195
$ 6,799,186
MSR/mtg loans serviced
0.62%
0.58%
0.60%
0.83%
0.76%
AVAILABLE-FOR-SALE SECURITIES, at fair value
U.S. Government agencies
$ 3,116,458
$ 3,348,206
$ 3,532,905
$ 3,599,317
$ 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
$ 5,659,785
$ 4,973,171
$ 4,468,340
$ 4,481,974
$ 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
$ 23,555,422
$ 23,236,176
$ 21,032,524
$ 21,052,576
$ 19,850,225
$ 23,555,422
$ 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
$ 22,653,134
$ 22,331,203
$ 20,124,937
$ 20,166,889
$ 18,967,032
$ 22,653,134
$ 18,967,032
Less:
PPP loans
1,212,246
1,192,715
-
-
-
1,212,246
-
Total tangible assets-excluding PPP loans
$ 21,440,888
$ 21,138,488
$ 20,124,937
$ 20,166,889
$ 18,967,032
$ 21,440,888
$ 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
$ 23,318,877
$ 22,707,686
$ 21,189,637
$ 20,243,023
$ 19,170,926
$ 22,408,734
$ 18,618,066
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)
8.30%
8.18%
8.82%
8.92%
8.47%
8.30%
8.47%
Tangible shareholders' equity to tangible assets-excluding PPP loans (2)
8.77%
8.65%
8.82%
8.92%
8.47%
8.77%
8.47%
Tangible common shareholders' equity to tangible assets (3)
7.56%
7.44%
7.99%
8.09%
8.47%
7.56%
8.47%
Tangible common shareholders' equity to tangible assets-excluding PPP loans (4)
7.99%
7.86%
7.99%
8.09%
8.47%
7.99%
8.47%
Return on average tangible equity (5)
16.08%
13.43%
5.56%
15.47%
16.23%
11.79%
14.88%
Return on average tangible common equity (6)
17.13%
14.20%
5.54%
16.19%
16.23%
12.41%
14.88%
Operating return on average tangible equity-excluding MSR (7)
16.03%
13.89%
8.42%
15.94%
17.75%
12.85%
16.57%
Operating return on average tangible common equity-excluding MSR (8)
17.08%
14.71%
8.71%
16.68%
17.75%
13.58%
16.57%
Operating return on average assets-excluding MSR (9)
1.26%
1.12%
0.70%
1.33%
1.44%
1.03%
1.35%
Operating return on average shareholders' equity-excluding MSR (10)
10.72%
9.29%
5.56%
10.46%
11.63%
8.56%
10.92%
Operating return on average common shareholders' equity-excluding MSR (11)
11.05%
9.53%
5.55%
10.78%
11.63%
8.75%
10.92%
Pre-tax pre-provision net revenue to total average assets (12)
1.88%
1.81%
1.74%
1.68%
1.87%
1.81%
1.75%
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.
http://www.prnewswire.com/news-releases/bancorpsouth-announces-third-quarter-2020-financial-results-301155052.html
SOURCE BancorpSouth Bank
