Breaking News Bar

Business News and Information

BancorpSouth Announces First Quarter 2021 Results

TUPELO, Miss., April 21, 2021 /PRNewswire/ -- BancorpSouth Bank (NYSE: BXS) (the "Company") today announced financial results for the quarter ended March 31, 2021.

Highlights for the first quarter of 2021 included:

  • Achieved record quarterly net income available to common shareholders of $79.2 million, or $0.77 per diluted common share, and record net operating income available to common shareholders – excluding MSR – of $74.8 million, or $0.73 per diluted common share.
  • Generated $99.1 million in pre-tax pre-provision net revenue (PPNR), or 1.64 percent of average assets on an annualized basis.
  • Credit quality indicators improved as evidenced by no recorded provision for credit losses for the quarter and a decline of $21.9 million, or 16.5 percent, in total non-performing assets.
  • Generated total deposit and customer repo growth of $1.3 billion for the quarter, or 26.7 percent on an annualized basis.
  • Originated and funded 7,527 loans totaling $463.5 million under the Paycheck Protection Program (PPP); received PPP forgiveness payments totaling $307.9 million during the quarter.
  • Continued strong mortgage production volume of $789.8 million which contributed to mortgage production and servicing revenue of $17.9 million.
  • Maintained strong regulatory capital metrics; estimated total risk-based capital of 14.65 percent at March 31, 2021 compared to 14.48 percent at December 31, 2020.
  • Recently received regulatory approval to complete transactions with National United Bancshares, Inc., the parent company of National United, and FNS Bancshares, Inc., the parent company of FNB Bank, which are expected to close effective May 1, 2021 and add approximately $1.6 billion in total assets to the Company.
  • On April 12, 2021, announced the signing of a merger agreement with Cadence Bancorporation, the parent company of Cadence Bank N.A., which creates a $44 billion institution on a pro forma basis that will be the 5th largest bank headquartered in the Company's nine-state footprint.

"We are pleased to report another quarter of record financial performance," remarked Dan Rollins, Chairman and Chief Executive Officer.  "While the unprecedented liquidity levels in the industry continue to pressure our net interest margin and adversely impact loan demand, our teammates are doing a great job taking care of customers and controlling the things we can control.  Consistent with industry trends, we reported meaningful deposit and customer repo growth for the quarter. Our mortgage team had another outstanding quarter, while our insurance and wealth management teams reported strong revenue growth for the quarter.  We also originated almost $465 million in new PPP loans during the quarter while also receiving forgiveness payments totaling over $300 million on loans that were originated last year."

"As we look at other highlights for the quarter, we are extremely pleased with credit quality.  The economies across our footprint are open and generally performing quite well.  Virtually all of our credit quality indicators, including non-performing and classified assets, improved which, along with the economic forecasts utilized in our modeling process, resulted in no recorded provision for credit losses for the quarter.  Finally, we continue to be pleased with our efforts to improve our expense base as reflected in the meaningful decline in total non-interest expense compared to both the first and fourth quarters of last year."

Earnings Summary

The Company reported net income available to common shareholders of $79.2 million, or $0.77 per diluted common share, for the first quarter of 2021, compared with net income available to common shareholders of $21.9 million, or $0.21 per diluted common share, for the first quarter of 2020 and net income available to common shareholders of $66.4 million, or $0.65 per diluted common share, for the fourth quarter of 2020.  The Company reported net operating income available to common shareholders – excluding MSR – of $74.8 million, or $0.73 per diluted common share, for the first quarter of 2021, compared with $34.4 million, or $0.33 per diluted common share, for the first quarter of 2020 and $70.8 million, or $0.69 per diluted common share, for the fourth quarter of 2020.

The Company reported PPNR of $99.1 million, or 1.64 percent of average assets on an annualized basis, for the first quarter of 2021 compared to $91.7 million, or 1.74 percent of average assets on an annualized basis, for the first quarter of 2020 and $93.6 million, or 1.57 percent of average assets on an annualized basis, for the fourth quarter of 2020.

Net Interest Revenue

Net interest revenue was $172.8 million for the first quarter of 2021, an increase of 3.1 percent from $167.5 million for the first quarter of 2020 and a decrease of 2.3 percent from $176.9 million for the fourth quarter of 2020.  The fully taxable equivalent net interest margin was 3.15 percent for the first quarter of 2021, compared with 3.54 percent for the first quarter of 2020 and 3.29 percent for the fourth quarter of 2020.  Yields on net loans and leases were 4.53 percent for the first quarter of 2021, compared with 5.00 percent for the first quarter of 2020 and 4.55 percent for the fourth quarter of 2020, while yields on total interest earning assets were 3.51 percent for the first quarter of 2021, compared with 4.27 percent for the first quarter of 2020 and 3.70 percent for the fourth quarter of 2020.  The net interest margin, excluding accretable yield, was 3.08 percent for the first quarter of 2021, compared with 3.48 percent for the first quarter of 2020 and 3.24 percent for the fourth quarter of 2020, while yields on net loans and leases, excluding accretable yield, were 4.43 percent for the first quarter of 2021, compared with 4.93 percent for the first quarter of 2020 and 4.49 percent for the fourth quarter of 2020. 

The $1.1 billion in PPP loans on the balance sheet had an adverse impact of approximately six basis points on the yield on net loans and leases, excluding accretable yield, for the first quarter of 2021.  Net interest income for the first quarter of 2021 included approximately $3.1 million of accelerated PPP fee income recognition resulting from the payoff of loans that were forgiven by the SBA during the quarter.  The average cost of deposits was 0.33 percent for the first quarter of 2021, compared with 0.67 percent for the first quarter of 2020 and 0.38 percent for the fourth quarter of 2020.

Balance Sheet Activity

Loans and leases, net of unearned income, increased $16.3 million during the first quarter of 2021.  Excluding the impact of PPP originations and paydowns, total loans declined approximately $140.0 million compared to December 31, 2020.  Deposits and customer repos increased $1.3 billion, or 26.7 percent on an annualized basis, during the first quarter of 2021.  There were no acquisitions during the first quarter of 2021. 

Provision for Credit Losses and Allowance for Credit Losses

Earnings for the first quarter of 2021 reflect no provision for credit losses, compared with a provision of $46.0 million for the first quarter of 2020 and a provision of $5.0 million for the fourth quarter of 2020.  Net charge-offs for the first quarter of 2021 were $3.3 million, or 0.09 percent of net loans and leases on an annualized basis, compared with net charge-offs of $13.7 million for the first quarter of 2020 and net charge-offs of $11.2 million for the fourth quarter of 2020.  The allowance for credit losses was $241.1 million, or 1.60 percent of net loans and leases, at March 31, 2021, compared with $218.2 million, or 1.53 percent of net loans and leases, at March 31, 2020, and $244.4 million, or 1.63 percent of net loans and leases, at December 31, 2020.   The allowance for credit losses coverage, excluding the impact of PPP loans, was 1.74 percent of net loans and leases at March 31, 2021.   

Total non-performing assets were $110.7 million, or 0.43 percent of total assets, at March 31, 2021, compared with $137.8 million, or 0.66 percent of total assets, at March 31, 2020, and $132.6 million, or 0.55 percent of total assets, at December 31, 2020.  Other real estate owned was $9.4 million at March 31, 2021, compared with $9.2 million at March 31, 2020 and $11.4 million at December 31, 2020.

Noninterest Revenue

Noninterest revenue was $87.9 million for the first quarter of 2021, compared with $76.5 million for the first quarter of 2020 and $78.8 million for the fourth quarter of 2020.  These results include a positive mortgage servicing rights (MSR) valuation adjustment of $7.4 million for the first quarter of 2021, compared with a negative MSR valuation adjustment of $11.1 million for the first quarter of 2020 and a positive MSR valuation adjustment of $0.2 million for the fourth quarter of 2020.  Valuation adjustments in the MSR asset are driven primarily by fluctuations in interest rates period over period.   

Mortgage production and servicing revenue was $17.9 million for the first quarter of 2021, compared with $20.6 million for the first quarter of 2020 and $19.9 million for the fourth quarter of 2020.  Mortgage origination volume for the first quarter of 2021 was $789.8 million, compared with $477.1 million for the first quarter of 2020 and $845.9 million for the fourth quarter of 2020.  Home purchase money volume was $379.4 million for the first quarter of 2021, compared with $285.3 million for the first quarter of 2020 and $466.4 million for the fourth quarter of 2020.  Of the total mortgage origination volume for the first quarter of 2021, $149.0 million was portfolio loans, compared with $85.6 million for the first quarter of 2020 and $157.8 million for the fourth quarter of 2020.

Credit card, debit card, and merchant fee revenue was $9.7 million for the first quarter of 2021, compared with $9.2 million for the first quarter of 2020 and $10.1 million for the fourth quarter of 2020.  Deposit service charge revenue was $8.5 million for the first quarter of 2021, compared with $11.7 million for the first quarter of 2020 and $9.7 million for the fourth quarter of 2020.  Wealth management revenue was $8.5 million for the first quarter of 2021, compared with $6.6 million for the first quarter of 2020 and $6.8 million for the fourth quarter of 2020.  Insurance commission revenue was $30.7 million for the first quarter of 2021, compared with $29.6 million for the first quarter of 2020 and $29.8 million for the fourth quarter of 2020.  Other noninterest revenue was $5.3 million for the first quarter of 2021, compared with $10.1 million for the first quarter of 2020 and $2.3 million for the fourth quarter of 2020.  Other noninterest revenue for the fourth quarter of 2020 was adversely impacted by $2.7 million of book amortization associated with a historic tax credit.  A related benefit of $3.0 million was recorded as a reduction to income tax expense for the fourth quarter of 2020.  Other noninterest revenue for the first quarter of 2020 included a $4.2 million gain associated with the sale of a book of business within the Company's insurance agency.

Noninterest Expense

Noninterest expense for the first quarter of 2021 was $155.8 million, compared with $168.0 million for the first quarter of 2020 and $167.9 million for the fourth quarter of 2020.  Salaries and employee benefits expense was $101.1 million for the first quarter of 2021, compared with $108.3 million for the first quarter of 2020 and $97.2 million for the fourth quarter of 2020.  Occupancy expense was $12.8 million for the first quarter of 2021, compared with $12.7 million for the first quarter of 2020 and $13.0 million for the fourth quarter of 2020.  Other noninterest expense was $35.9 million for the first quarter of 2021, compared with $40.8 million for the first quarter of 2020 and $45.4 million for the fourth quarter of 2020.  Additionally, merger-related expense for the first quarter of 2021 was $1.6 million, compared with merger-related expense of $4.5 million for the first quarter of 2020 and $0.2 million for the fourth quarter of 2020. 

Noninterest expense for the first quarter of 2021 and the fourth quarter of 2020 included certain items that were non-routine in nature as defined by the Company.  Salaries and benefits expense for the first quarter of 2021 benefited from an accrual true-up totaling approximately $3.0 million related to the Company's equity compensation plans.  During the fourth quarter of 2020, the Company recorded a charge of $5.8 million in accordance with ASC 715 "Compensation – Retirement Benefits" to reflect the settlement accounting impact of an elevated number of retirements and related lump sum pension payouts during the quarter.   Salaries and employee benefits expense was positively impacted by accrual true ups totaling approximately $6.7 million relating to incentive compensation and other employee benefits.  Other non-interest expense included charges and write-downs totaling approximately $5.0 million associated with the anticipated disposition of certain facilities and other fixed assets, including fixed assets associated with branches identified for closure. 

Capital Management

The Company's ratio of shareholders' equity to assets was 10.95 percent at March 31, 2021, compared with 12.75 percent at March 31, 2020 and 11.72 percent at December 31, 2020.  The ratio of tangible common shareholders' equity to tangible assets was 7.04 percent at March 31, 2021, compared with 7.99 percent at March 31, 2020 and 7.54 percent at December 31, 2020.  The $1.1 billion in PPP loans had an adverse impact of approximately 34 basis points on tangible common shareholders' equity to tangible assets at March 31, 2021.

During the first quarter of 2021, the Company did not repurchase any shares of its common stock pursuant to its share repurchase program.  The Company has 6.0 million shares remaining on its current share repurchase authorization which will expire on December 31, 2021.  

Estimated regulatory capital ratios at March 31, 2021 were calculated in accordance with the Basel III capital framework as well as the interagency final rule published on September 30, 2020 entitled "Revised Transition of the Current Expected Credit Losses Methodology for Allowances".  The Company is a "well capitalized" bank, as defined by federal regulations, at March 31, 2021, with Tier 1 risk-based capital of 11.95 percent and total risk-based capital of 14.65 percent, compared with required minimum levels of 8 percent and 10 percent, respectively, in order to qualify for "well capitalized" classification. 

Summary

Rollins concluded, "It's an exciting time for our Company.  The economies in our markets are performing quite well and, despite certain industry headwinds, we continue to be pleased with our financial performance.   We look forward to the growth opportunities ahead of us.  The recent merger announcement with Cadence is a transformational opportunity for our Company.  We believe the strengths of each organization are complementary.  Both organizations are highly focused on improving the customer experience and giving back to the communities we serve.  We are also excited about the opportunity to complete our pending mergers with National United and FNB Bank next month.  These two teams will be an integral part of our strategic efforts going forward as we continue to grow our Company and enhance shareholder value."

TRANSACTIONS

Cadence Bancorporation (NYSE: CADE)

On April 12, 2021, the Company announced the signing of a definitive merger agreement (the Cadence Merger Agreement) with Cadence Bancorporation, the parent company of Cadence Bank N.A., (collectively referred to as Cadence), pursuant to which Cadence will be merged with and into the Company (the Cadence Merger).  Cadence operates 98 full-service banking offices in the southeast.  As of December 31, 2020, Cadence collectively reported total assets of $18.7 billion, total loans of $12.7 billion and total deposits of $16.1 billion.  Under the terms of the Cadence Merger Agreement, each Cadence shareholder will receive 0.70 shares of the Company's common stock.  In addition, Cadence will pay a one-time special dividend of $1.25 per share at closing.  For more information regarding the Cadence Merger, see our Current Report on Form 8-K that was filed with the Federal Deposit Insurance Corporation (FDIC) on April 12, 2021.  The Cadence Merger Agreement has been unanimously approved by the Boards of Directors of the Company and Cadence.  Subject to the satisfaction of all closing conditions, including the receipt of all required regulatory and shareholder approvals, the Cadence Merger is expected to be completed during the fourth quarter of 2021, although the Company can provide no assurance that the Cadence Merger will close during this time period or at all.

FNS Bancshares, Inc.

On January 13, 2021, the Company announced the signing of a definitive merger agreement (the FNS Merger Agreement) with FNS Bancshares, Inc., the parent company of FNB Bank, (collectively referred to as FNS), pursuant to which FNS will be merged with and into the Company (the FNS Merger).  FNS operates 17 full-service banking offices in Alabama, Georgia and Tennessee.  The merger will expand the Company's presence in Jackson, DeKalb and Marshall counties in Alabama and the Chattanooga, Tennessee-Georgia and Nashville-Davidson-Murfreesboro-Franklin, Tennessee metropolitan statistical areas.  As of March 31, 2021, FNS collectively reported total assets of $826.5 million, total loans of $475.1 million and total deposits of $709.9 million.  Under the terms of the FNS Merger Agreement, the Company will issue approximately 2,975,000 shares of the Company's common stock plus $18.0 million in cash for all outstanding shares of FNS.  For more information regarding the FNS Merger, see our Current Report on Form 8-K that was filed with the FDIC on January 13, 2021.  Subject to the satisfaction of all closing conditions, the FNS Merger is expected to close on May 1, 2021.

National United Bancshares, Inc.

On December 2, 2020, the Company announced the signing of a definitive merger agreement (the National United Merger Agreement) with National United Bancshares, Inc., the parent company of National United, (collectively referred to as National United), pursuant to which National United will be merged with and into the Company (the National United Merger).  National United operates 6 full-service banking offices in the Killeen-Temple, Texas; Waco, Texas; and Austin-Round Rock-Georgetown, Texas metropolitan statistical areas.  As of March 31, 2021, National United collectively reported total assets of $788.9 million, total loans of $440.6 million and total deposits of $712.8 million.  Under the terms of the National United Merger Agreement, the Company will issue approximately 3,110,000 shares of the Company's common stock plus $33.25 million in cash for all outstanding shares of National United.  For more information regarding National United Merger, see our Current Report on Form 8-K that was filed with the FDIC on December 2, 2020.  Subject to the satisfaction of all closing conditions, the National United Merger is expected to close on May 1, 2021.

Non-GAAP Measures and Ratios

This news release presents certain financial measures and ratios that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP).  A discussion regarding these non-GAAP measures and ratios, including reconciliations of non-GAAP measures to the most directly comparable GAAP measures and definitions for non-GAAP ratios, appears under the caption "Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions"  beginning on page 24 of this news release.

Statement Regarding Impact of COVID-19 Pandemic

The Company prioritizes the health and safety of its teammates and customers, and it will continue to do so throughout the duration of the COVID-19 pandemic.  At the same time, the Company remains focused on improving shareholder value, managing credit exposure, challenging expenses, enhancing the customer experience and supporting the communities it serves. Lastly, as a SBA Preferred Lender, the Company is an active participant in the SBA's PPP for the betterment of its customers and the communities that it serves.

In the presentation that accompanies this news release and in its earnings conference call, the Company has sought and will seek to describe the historical and future impact of the COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations, including the information and discussions regarding negative pressure on its net interest margin and loan demand.  Although the Company believes that the statements that pertain to future events, results and trends and their impact on the Company's business are reasonable at the present time, those statements are not historical facts and are based upon current assumptions, expectations, estimates and projections, many of which, by their nature, are beyond the Company's control.  Accordingly, all discussions regarding future events, results and trends and their impact on the Company's business, even in the near term, are necessarily uncertain given the fluid and evolving nature of the pandemic.

If the health, logistical or economic effects of the pandemic worsen, or if the assumptions, expectations, estimates or projections that underlie the Company's statements regarding future effects or trends prove to be incorrect, then the Company's actual assets, business, cash flows, financial condition, liquidity, prospects and results of operations and the trading prices of its capital stock may be materially and adversely impacted in ways that the Company cannot reasonably forecast.

Accordingly, when reading this news release and the accompanying presentation and when listening to the earnings conference call, undue reliance should not be placed upon any statement pertaining to future events, results and trends and their impact on the Company's business in future periods.

Conference Call and Webcast

The Company will conduct a conference call to discuss its first quarter 2021 financial results on April 22, 2021, at 10:00 a.m. (Central Time).  This conference call will be an interactive session between management and analysts. Interested parties may listen to this live conference call via Internet webcast by accessing www.bancorpsouth.investorroom.com/webcasts. The webcast will also be available in archived format at the same address.

About BancorpSouth Bank

BancorpSouth Bank (NYSE: BXS) is headquartered in Tupelo, Mississippi, with approximately $26 billion in assets.  BancorpSouth operates approximately 300 full service branch locations as well as additional mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee and Texas, including an insurance location in Illinois.  BancorpSouth is committed to a culture of respect, diversity, and inclusion in both its workplace and communities. To learn more, visit our Community Commitment page at www.bancorpsouth.com.  Like us on Facebook; follow us on Twitter and Instagram: @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 (the "Exchange Act"), and are subject to the safe harbor created thereby under the Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "aspire," "assume," "believe," "budget," "contemplate," "continue," "could," "estimate," "expect," "forecast," "foresee," "goal," "hope," "indicate," "intend," "may," "might," "outlook," "plan," "project," "projection," "predict," "prospect," "potential," "roadmap," "seek," "should," "target," "will," and "would," or the negative versions of those words or other comparable words of a future or forward-looking nature. These forward-looking statements include, without limitation, discussions regarding general economic, interest rate, real estate market, competitive, employment, and credit market conditions, including the impact of the COVID-19 pandemic on the Company's business; the Company's: assets; business; cash flows; financial condition; liquidity; prospects; results of operations; deposit and customer repo growth; interest and fee-based revenue; capital resources; capital metrics; efficiency ratio; valuation of mortgage servicing rights; net income; net interest revenue; non-interest revenue; net interest margin; interest expense; non-interest expense; earnings per share; interest rate sensitivity; interest rate risk; balance sheet and liquidity management; off-balance sheet arrangements; fair value determinations; asset quality; credit quality; credit losses; provision and allowance for credit losses, impairments, charge-offs, recoveries and changes in loan volumes; investment securities portfolio yields and values; ability to manage the impact of pandemics, natural disasters and other force majeure events; adoption and use of critical accounting policies; adoption and implementation of new accounting standards and their effect on the Company's financial results and the Company's financial reporting; utilization of non-GAAP financial metrics; declaration and payment of dividends; ability to pay dividends or coupons on the Company's 5.5% Series A Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share, or the 4.125% Fixed-to-Floating Rate Subordinated Notes due November 20, 2029; mortgage origination volume; mortgage servicing and production revenue; insurance commission revenue; implementation and execution of cost savings initiatives; ability to successfully litigate, resolve or otherwise dispense with threatened, pending, ongoing and future litigation and governmental, administrative and investigatory matters; ability to successfully complete pending or future acquisitions, dispositions and other strategic growth opportunities and initiatives; ability to successfully obtain regulatory approval for acquisitions and other growth initiatives; ability to successfully integrate and manage acquisitions; opportunities and efforts to grow market share; reputation; ability to compete with other financial institutions; ability to recruit and retain key employees and personnel; access to capital markets; availability of capital; investments in the securities of other financial institutions; and ability to operate the Company's regulatory compliance programs in accordance with applicable law.

Forward-looking statements are based upon management's expectations as well as certain assumptions and estimates made by, and information available to, the Company's management at the time such statements were made. Forward-looking statements are not historical facts, are not guarantees of future results or performance and are subject to certain known and unknown risks, uncertainties and other factors that are beyond the Company's control and that may cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. These risks, uncertainties and other factors include, without limitation, potential delays or other problems in implementing and executing the Company's growth, expansion and acquisition strategies, including delays in obtaining regulatory or other necessary approvals or the failure to realize any anticipated benefits or synergies from any acquisitions or growth strategies; the risks of changes in interest rates and their effects on the level and composition of deposits, loan demand and the values of loan collateral, securities and interest sensitive assets and liabilities; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the availability of and access to capital; possible downgrades in the Company's credit ratings or outlook which could increase the costs or availability of funding from capital markets; the ability to attract new or retain existing deposits or to retain or grow loans; the ability to grow additional interest and fee income or to control noninterest expense; the potential impact of the proposed phase-out of the London Interbank Offered Rate ("LIBOR") or other changes involving LIBOR; competitive factors and pricing pressures, including their effect on the Company's net interest margin; general economic, unemployment, credit market and real estate market conditions, and the effect of such conditions on the creditworthiness of borrowers, collateral values, the value of investment securities and asset recovery values; changes in legal, financial and/or regulatory requirements; recently enacted and potential legislation and regulatory actions and the costs and expenses to comply with new and/or existing legislation and regulatory actions, including those actions in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the "Economic Aid Act") and any related rules and regulations; changes in U.S. Government monetary and fiscal policy; FDIC special assessments or changes to regular assessments; the enforcement efforts of federal and state bank regulators; possible adverse rulings, judgments, settlements and other outcomes of pending, ongoing and future litigation and governmental, administrative and investigatory matters (including litigation or actions arising from the Company's participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the PPP loan programs authorized by the CARES Act and the Economic Aid Act); the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity; the impact of failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with whom the Company does business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting the Company or the Company's customers; natural disasters or acts of war or terrorism; the adverse effects of the ongoing global COVID-19 pandemic, including the magnitude and duration of the pandemic, and the effect of actions taken to mitigate the impact of the COVID-19 pandemic on the Company, the Company's employees, the Company's customers, the global economy and the financial markets; international or political instability; impairment of the Company's goodwill or other intangible assets; losses of key employees and personnel; adoption of new accounting standards, including the effects from the adoption of the current expected credit loss methodology on January 1, 2020, or changes in existing standards; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between the Company and Cadence; the outcome of any legal proceedings that may be instituted against the Company or Cadence; the possibility that the proposed transaction will not close when expected or at all because required regulatory, shareholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated; the ability of the Company and Cadence to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of either or both parties to the proposed transaction; the possibility that the anticipated benefits of the proposed transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where the Company and Cadence do business; certain restrictions during the pendency of the proposed transaction that may impact the parties' ability to pursue certain business opportunities or strategic transactions; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; diversion of management's attention from ongoing business operations and opportunities; the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all and to successfully integrate Cadence's operations and those of the Company; such integration may be more difficult, time consuming or costly than expected; revenues following the proposed transaction may be lower than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; the Company and Cadence's success in executing their respective business plans and strategies and managing the risks involved in the foregoing; the dilution caused by the Company's issuance of additional shares of its capital stock in connection with the proposed transaction and other factors as detailed from time to time in the Company's press and news releases, periodic and current reports and other filings the Company files with the FDIC.

The foregoing factors should not be construed as exhaustive and should be read in conjunction with those factors that are set forth from time to time in the Company's periodic and current reports filed with the FDIC, including those factors included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 under the heading "Item 1A. Risk Factors," in the Company's Quarterly Reports on Form 10-Q and in the Company's Current Reports on Form 8-K.

Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date of this news release, if one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statements. The forward-looking statements speak only as of the date of this news release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by applicable law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company.  All written or oral forward-looking statements attributable to the Company are expressly qualified in their entirety by this section.

 

BancorpSouth Bank

Selected Financial Information

(Dollars in thousands, except per share data)

(Unaudited)














Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter Ended


3/31/2021

12/31/2020

9/30/2020

6/30/2020

3/31/2020

Earnings Summary:






Interest revenue

$                    192,783

$                    199,287

$                    200,670

$                    197,472

$                    202,064

Interest expense

19,994

22,351

24,739

26,902

34,534

Net interest revenue

172,789

176,936

175,931

170,570

167,530

Provision for credit losses

-

5,000

15,000

20,000

46,000

Net interest revenue, after provision






   for credit losses

172,789

171,936

160,931

150,570

121,530

Noninterest revenue

87,936

78,826

89,924

91,258

76,496

Noninterest expense

155,823

167,911

155,505

162,504

168,006

Income before income taxes

104,902

82,851

95,350

79,324

30,020

Income tax expense

23,347

14,046

21,525

18,164

5,759

Net income

$                      81,555

$                      68,805

$                      73,825

$                      61,160

$                      24,261

Less: Preferred dividends

2,372

2,372

2,372

2,372

2,372

Net income available to common shareholders

$                      79,183

$                      66,433

$                      71,453

$                      58,788

$                      21,889







Balance Sheet - Period End Balances






Total assets

$               25,802,497

$               24,081,194

$               23,555,422

$               23,236,176

$               21,032,524

Total earning assets

23,542,657

21,792,725

21,340,371

21,119,073

18,939,750

Total securities

7,640,268

6,231,006

5,659,785

4,973,171

4,468,340

Loans and leases, net of unearned income

15,038,808

15,022,479

15,327,735

15,427,421

14,224,645

Allowance for credit losses

241,117

244,422

250,624

237,025

218,199

Net book value of acquired loans (included in loans and leases above)

1,023,252

1,160,267

1,320,671

1,510,008

1,661,329

Paycheck protection program (PPP) loans (included in loans and leases above)

1,146,000

975,421

1,212,246

1,192,715

-

Remaining loan mark on acquired loans

10,069

13,886

16,198

19,977

22,286

Total deposits

21,173,186

19,846,441

19,412,979

19,179,486

16,887,916

Total deposits and securities sold under agreement to repurchase

21,833,671

20,484,156

20,024,434

19,849,502

17,426,878

Long-term debt

4,295

4,402

4,508

4,615

4,721

Junior subordinated debt securities

297,425

297,250

297,074

296,898

296,723

Total shareholders' equity

2,825,198

2,822,477

2,782,539

2,732,687

2,681,904

Common shareholders' equity

2,658,205

2,655,484

2,615,546

2,565,694

2,514,911







Balance Sheet - Average Balances






Total assets

$               24,545,560

$               23,660,503

$               23,318,877

$               22,707,686

$               21,189,637

Total earning assets

22,346,075

21,497,938

21,241,896

20,594,889

19,113,449

Total securities

6,606,027

5,820,425

5,309,982

4,437,614

4,461,298

Loans and leases, net of unearned income

15,029,076

15,219,402

15,369,684

15,114,732

14,226,788

PPP loans (included in loans and leases above)

1,062,423

1,139,959

1,207,097

975,029

-

Total deposits

20,472,080

19,600,863

19,258,930

18,454,472

16,905,229

Total deposits and securities sold under agreement to repurchase

21,123,774

20,272,881

19,940,330

19,098,599

17,446,936

Long-term debt

4,378

4,488

4,592

4,699

4,800

Junior subordinated debt securities

297,318

297,145

296,969

296,793

296,617

Total shareholders' equity

2,813,001

2,774,589

2,729,870

2,738,434

2,658,699

Common shareholders' equity

2,646,008

2,607,596

2,562,877

2,571,441

2,491,678







Nonperforming Assets:






Non-accrual loans and leases

$                      73,142

$                      96,378

$                    122,108

$                    126,753

$                    110,074

Loans and leases 90+ days past due, still accruing

21,208

14,320

17,641

9,877

7,272

Restructured loans and leases, still accruing

6,971

10,475

11,154

11,575

11,284

Non-performing loans (NPLs)

101,321

121,173

150,903

148,205

128,630

Other real estate owned

9,351

11,395

6,397

7,164

9,200

Non-performing assets (NPAs)

$                    110,672

$                    132,568

$                    157,300

$                    155,369

$                    137,830







Financial Ratios and Other Data:






Return on average assets

1.35%

1.16%

1.26%

1.08%

0.46%

Operating return on average assets-excluding MSR*

1.28%

1.23%

1.26%

1.12%

0.70%

Return on average shareholders' equity

11.76%

9.87%

10.76%

8.98%

3.67%

Operating return on average shareholders' equity-excluding MSR*

11.13%

10.49%

10.72%

9.29%

5.56%

Return on average common shareholders' equity

12.14%

10.14%

11.09%

9.19%

3.53%

Operating return on average common shareholders' equity-excluding MSR*

11.47%

10.80%

11.05%

9.53%

5.55%

Return on average tangible equity*

17.35%

14.66%

16.08%

13.43%

5.56%

Operating return on average tangible equity-excluding MSR*

16.42%

15.58%

16.03%

13.89%

8.42%

Return on average tangible common equity*

18.46%

15.54%

17.13%

14.20%

5.54%

Operating return on average tangible common equity-excluding MSR*

17.44%

16.56%

17.08%

14.71%

8.71%

Pre-tax pre-provision net revenue to total average assets*

1.64%

1.57%

1.88%

1.81%

1.74%

Noninterest income to average assets

1.45%

1.33%

1.53%

1.62%

1.45%

Noninterest expense to average assets

2.57%

2.82%

2.65%

2.88%

3.19%

Net interest margin-fully taxable equivalent

3.15%

3.29%

3.31%

3.35%

3.54%

Net interest margin-fully taxable equivalent, excluding net accretion






  on acquired loans and leases

3.08%

3.24%

3.23%

3.30%

3.48%

Net interest rate spread

2.97%

3.07%

3.06%

3.08%

3.24%

Efficiency ratio (tax equivalent)*

59.64%

65.47%

58.36%

61.89%

68.65%

Operating efficiency ratio-excluding MSR (tax equivalent)*

60.74%

63.18%

58.41%

61.16%

63.89%

Loan/deposit ratio

71.03%

75.69%

78.96%

80.44%

84.23%

Price to earnings multiple (close)

12.07

12.88

9.18

11.15

9.46

Market value to common book value

125.39%

105.98%

75.99%

90.91%

77.21%

Market value to common book value (avg)

119.10%

97.56%

83.75%

84.79%

107.86%

Market value to common tangible book value

190.14%

161.00%

116.01%

140.44%

120.81%

Market value to common tangible book value (avg)

180.60%

148.21%

127.86%

130.99%

168.76%

Employee FTE

4,546

4,596

4,691

4,742

4,737







*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 24 and 25.










Credit Quality Ratios:






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

0.09%

0.29%

0.04%

0.03%

0.39%

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

0.00%

0.13%

0.39%

0.53%

1.30%

Allowance for credit losses to net loans and leases

1.60%

1.63%

1.64%

1.54%

1.53%

Allowance for credit losses to net loans and leases, excluding PPP loans

1.74%

1.74%

1.78%

1.67%

1.53%

Allowance for credit losses to non-performing loans and leases

237.97%

201.71%

166.08%

159.93%

169.63%

Allowance for credit losses to non-performing assets

217.87%

184.37%

159.33%

152.56%

158.31%

Non-performing loans and leases to net loans and leases

0.67%

0.81%

0.98%

0.96%

0.90%

Non-performing loans and leases to net loans and leases, excluding






  acquired loans and leases

0.54%

0.62%

0.74%

0.63%

0.64%

Non-performing assets to total assets

0.43%

0.55%

0.67%

0.67%

0.66%

Non-performing assets to total assets, excluding acquired loans and leases

0.34%

0.42%

0.49%

0.43%

0.44%













Equity Ratios:






Total shareholders' equity to total assets

10.95%

11.72%

11.81%

11.76%

12.75%

Total common shareholders' equity to total assets

10.30%

11.03%

11.10%

11.04%

11.96%

Tangible shareholders' equity to tangible assets*

7.71%

8.26%

8.30%

8.18%

8.82%

Tangible shareholders' equity to tangible assets-excluding PPP loans*

8.08%

8.63%

8.77%

8.65%

8.82%

Tangible common shareholders' equity to tangible assets*

7.04%

7.54%

7.56%

7.44%

7.99%

Tangible common shareholders' equity to tangible assets-excluding PPP loans*

7.38%

7.87%

7.99%

7.86%

7.99%







Capital Adequacy:






Common  Equity Tier 1 capital

10.97%

10.74%

10.64%

10.21%

10.11%

Tier 1 capital

11.95%

11.74%

11.65%

11.22%

11.13%

Total capital

14.65%

14.48%

14.20%

13.79%

13.75%

Tier 1 leverage capital

8.59%

8.67%

8.59%

8.54%

8.90%

   Estimated for current quarter












Common Share Data:






Basic earnings per share

$                          0.77

$                          0.65

$                          0.70

$                          0.57

$                          0.21

Diluted earnings per share

0.77

0.65

0.69

0.57

0.21

Operating earnings per share*

0.78

0.69

0.70

0.57

0.25

Operating earnings per share- excluding MSR*

0.73

0.69

0.69

0.59

0.33

Cash dividends per share

0.190

0.190

0.185

0.185

0.185

Book value per share

25.90

25.89

25.50

25.01

24.50

Tangible book value per share*

17.08

17.04

16.71

16.19

15.66

Market value per share (last)

32.48

27.44

19.38

22.74

18.92

Market value per share (high)

35.59

28.54

24.29

25.93

31.61

Market value per share (low)

26.95

18.77

18.11

17.21

17.24

Market value per share (avg)

30.85

25.26

21.36

21.21

26.43

Dividend payout ratio

24.62%

29.34%

26.56%

32.29%

88.20%

Total shares outstanding

102,624,818

102,561,480

102,558,459

102,566,301

102,632,484

Average shares outstanding - basic

102,622,111

102,569,547

102,564,466

102,603,525

104,354,328

Average shares outstanding - diluted

102,711,584

102,817,409

102,839,749

102,827,225

104,733,897













Yield/Rate:






(Taxable equivalent basis)






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

4.53%

4.55%

4.54%

4.59%

5.00%

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






  net accretion on acquired loans and leases

4.43%

4.49%

4.44%

4.53%

4.93%

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






  net accretion on acquired loans and leases - excluding PPP loans

4.49%

4.53%

4.55%

4.67%

4.93%

PPP loans

3.69%

3.99%

3.11%

2.50%

N/A

Available-for-sale securities:






  Taxable

1.32%

1.53%

1.64%

1.95%

1.99%

  Tax-exempt

3.52%

3.40%

3.67%

3.86%

4.44%

Short-term, FHLB and other equity investments

0.11%

0.13%

0.19%

0.20%

1.53%

  Total interest earning assets and revenue

3.51%

3.70%

3.77%

3.87%

4.27%

Deposits

0.33%

0.38%

0.44%

0.50%

0.67%

  Demand - interest bearing

0.40%

0.47%

0.53%

0.61%

0.84%

  Savings

0.11%

0.15%

0.18%

0.18%

0.26%

  Other time

1.14%

1.28%

1.41%

1.54%

1.64%

  Total interest bearing deposits

0.48%

0.57%

0.65%

0.74%

0.92%

Short-term borrowings

0.13%

0.26%

0.25%

0.39%

1.25%

Total interest bearing deposits and short-term borrowings

0.46%

0.55%

0.63%

0.71%

0.95%

Junior subordinated debt

4.46%

4.05%

4.24%

4.18%

4.42%

Long-term debt

4.88%

4.84%

4.85%

4.81%

4.96%

  Total interest bearing liabilities and expense

0.54%

0.63%

0.71%

0.79%

1.03%

Interest bearing liabilities to interest earning assets

66.87%

65.99%

65.61%

66.65%

70.81%

Net interest tax equivalent adjustment

$                           569

$                           709

$                           618

$                           725

$                           714







*Denotes non-GAAP financial measure.  Refer to related disclosure and reconciliation on pages 24 and 25.










 









BancorpSouth Bank



Consolidated Balance Sheets



(Unaudited)












Mar-21

Dec-20

Sep-20

Jun-20

Mar-20




(Dollars in thousands)



Assets








Cash and due from banks

$                263,289

$                284,095

$                306,164

$                240,354

$                253,495



Interest bearing deposits with other banks








and Federal funds sold

336,253

133,273

39,782

318,615

29,490



Available-for-sale securities, at fair value

7,640,268

6,231,006

5,659,785

4,973,171

4,468,340



Loans and leases*

15,056,559

15,039,239

15,344,006

15,444,794

14,241,912



  Less:  Unearned income

17,751

16,760

16,271

17,373

17,267



             Allowance for credit losses

241,117

244,422

250,624

237,025

218,199



Net loans and leases

14,797,691

14,778,057

15,077,111

15,190,396

14,006,446



Loans held for sale

518,352

397,076

304,215

391,051

194,321



Premises and equipment, net

508,508

508,147

508,149

504,748

497,669



Accrued interest receivable

106,355

106,318

110,185

101,321

70,463



Goodwill

851,612

851,612

847,531

847,984

848,242



Other identifiable intangibles

53,581

55,899

54,757

56,989

59,345



Bank owned life insurance

335,707

333,264

331,799

329,167

327,312



Other real estate owned

9,351

11,395

6,397

7,164

9,200



Other assets

381,530

391,052

309,547

275,216

268,201



Total Assets

$           25,802,497

$           24,081,194

$           23,555,422

$           23,236,176

$           21,032,524



Liabilities








Deposits:








  Demand:  Noninterest bearing

$             6,990,880

$             6,341,457

$             6,336,792

$             6,385,370

$             4,861,155



                  Interest bearing

9,067,373

8,524,010

8,170,402

7,907,637

7,268,053



  Savings

2,678,276

2,452,059

2,325,980

2,234,853

2,013,343



  Other time

2,436,657

2,528,915

2,579,805

2,651,626

2,745,365



Total deposits

21,173,186

19,846,441

19,412,979

19,179,486

16,887,916



Securities sold under agreement to repurchase

660,485

637,715

611,455

670,016

538,962



Federal funds purchased








   and other short-term borrowing

-

-

95,217

220

290,224



Accrued interest payable

11,879

10,885

15,286

13,476

17,482



Junior subordinated debt securities

297,425

297,250

297,074

296,898

296,723



Long-term debt

4,295

4,402

4,508

4,615

4,721



Other liabilities

830,029

462,024

336,364

338,778

314,592



Total Liabilities

22,977,299

21,258,717

20,772,883

20,503,489

18,350,620



Shareholders' Equity








Preferred stock

166,993

166,993

166,993

166,993

166,993



Common stock

256,562

256,404

256,396

256,416

256,581



Capital surplus

563,481

565,187

565,635

561,541

558,114



Accumulated other comprehensive (loss) income

(43,459)

11,923

18,490

25,191

17,849



Retained earnings

1,881,621

1,821,970

1,775,025

1,722,546

1,682,367



Total Shareholders' Equity

2,825,198

2,822,477

2,782,539

2,732,687

2,681,904



Total Liabilities & Shareholders' Equity

$           25,802,497

$           24,081,194

$           23,555,422

$           23,236,176

$           21,032,524



















*Includes $1.146 billion, $975.4 million, $1.212 billion and $1.193 billion in PPP loans at March 31, 2021, December 31, 2020, September 30, 2020 and  June 30, 2020, respectively.





 

BancorpSouth Bank



Consolidated Average Balance Sheets



(Unaudited)












Mar-21

Dec-20

Sep-20

Jun-20

Mar-20




(Dollars in thousands)



Assets








Cash and due from banks

$                261,519

$                247,799

$                232,421

$                229,334

$                246,860



Interest bearing deposits with other banks








and Federal funds sold

412,313

171,650

257,057

760,789

239,766



Available-for-sale securities, at fair value

6,606,027

5,820,425

5,309,982

4,437,614

4,461,298



Loans and leases*

15,045,837

15,235,827

15,386,721

15,132,600

14,244,649



  Less:  Unearned income

16,761

16,425

17,037

17,868

17,861



             Allowance for credit losses

242,935

247,049

236,536

217,508

193,796



Net loans and leases

14,786,141

14,972,353

15,133,148

14,897,224

14,032,992



Loans held for sale

289,755

277,600

296,352

261,377

147,798



Premises and equipment, net

508,551

508,053

507,190

499,767

494,413



Accrued interest receivable

102,190

105,513

104,435

137,456

64,010



Goodwill

851,612

852,472

847,744

848,160

844,635



Other identifiable intangibles

54,876

54,858

56,045

58,280

58,805



Bank owned life insurance

333,837

332,543

330,642

328,037

326,808



Other real estate owned

11,043

14,872

7,754

8,410

8,151



Other assets

327,696

302,365

236,107

241,238

264,101



Total Assets

$           24,545,560

$           23,660,503

$           23,318,877

$           22,707,686

$           21,189,637



Liabilities








Deposits:








  Demand:  Noninterest bearing

$             6,484,703

$             6,391,006

$             6,340,942

$             5,942,570

$             4,717,202



                  Interest bearing

8,956,420

8,268,528

8,022,755

7,674,479

7,466,674



  Savings

2,550,095

2,386,034

2,280,860

2,152,092

1,975,690



  Other time

2,480,862

2,555,295

2,614,373

2,685,331

2,745,663



Total deposits

20,472,080

19,600,863

19,258,930

18,454,472

16,905,229



Securities sold under agreement to repurchase

651,694

672,018

681,400

644,127

541,707



Federal funds purchased








   and other short-term borrowing

1,500

3,893

36,696

269,121

502,257



Accrued interest payable

11,607

14,175

15,589

16,268

19,205



Junior subordinated debt securities

297,318

297,145

296,969

296,793

296,617



Long-term debt

4,378

4,488

4,592

4,699

4,800



Other liabilities

293,982

293,332

294,831

283,772

261,123



Total Liabilities

21,732,559

20,885,914

20,589,007

19,969,252

18,530,938



Shareholders' Equity








Preferred stock

166,993

166,993

166,993

166,993

167,021



Common stock

256,536

256,422

256,412

256,515

261,065



Capital surplus

563,529

568,343

563,267

559,737

600,880



Accumulated other comprehensive (loss) income

(5,090)

12,432

24,758

23,016

(36,367)



Retained earnings

1,831,033

1,770,399

1,718,440

1,732,173

1,666,100



Total Shareholders' Equity

2,813,001

2,774,589

2,729,870

2,738,434

2,658,699



Total Liabilities & Shareholders' Equity

$           24,545,560

$           23,660,503

$           23,318,877

$           22,707,686

$           21,189,637



















*Includes $1.062 billion, $1.140 billion, $1.207 billion and $975.0 million in PPP loans for the quarter ended March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.





 

BancorpSouth Bank

Consolidated Condensed Statements of Income

(Dollars in thousands, except per share data)

(Unaudited)












Quarter Ended


Mar-21


Dec-20


Sep-20


Jun-20


Mar-20

INTEREST REVENUE:










Loans and leases

$      169,195


$     174,072


$        175,810


$      173,164


$     177,019

Deposits with other banks

108


50


74


207


739

Federal funds sold, securities purchased










   under agreement to resell, FHLB and










      other equity investments

6


6


52


178


315

Available-for-sale securities:










    Taxable

21,192


21,895


21,280


20,783


21,508

    Tax-exempt

687


760


986


1,178


1,060

Loans held for sale

1,595


2,504


2,468


1,962


1,423

        Total interest revenue

192,783


199,287


200,670


197,472


202,064











INTEREST EXPENSE:










Interest bearing demand

8,796


9,766


10,773


11,631


15,522

Savings

700


872


1,012


943


1,290

Other time

6,966


8,189


9,287


10,296


11,168

Federal funds purchased and securities sold










   under agreement to repurchase

203


276


279


291


1,436

Short-term and long-term debt

45


47


49


477


1,857

Junior subordinated debt

3,269


3,201


3,338


3,263


3,261

Other

15


-


1


1


-

        Total interest expense

19,994


22,351


24,739


26,902


34,534











        Net interest revenue

172,789


176,936


175,931


170,570


167,530

  Provision for credit losses

-


5,000


15,000


20,000


46,000

        Net interest revenue, after provision for










          credit losses

172,789


171,936


160,931


150,570


121,530











NONINTEREST REVENUE:










Mortgage banking

25,310


20,129


27,097


29,557


9,470

Credit card, debit card and merchant fees

9,659


10,053


9,938


9,080


9,176

Deposit service charges

8,477


9,708


8,892


7,647


11,682

Security gains(losses), net

82


63


18


62


(85)

Insurance commissions

30,667


29,815


32,750


33,118


29,603

Wealth management

8,465


6,751


6,471


6,421


6,570

Other

5,276


2,307


4,758


5,373


10,080

        Total noninterest revenue

87,936


78,826


89,924


91,258


76,496











NONINTEREST EXPENSE:










Salaries and employee benefits

101,060


97,215


104,219


108,103


108,272

Occupancy, net of rental income

12,814


13,004


13,053


12,890


12,708

Equipment

4,564


4,756


4,519


4,762


4,649

Deposit insurance assessments

1,455


1,696


1,522


1,962


1,546

Pension settlement expense

-


5,846


-


-


-

Other

35,930


45,394


32,192


34,787


40,831

        Total noninterest expense

155,823


167,911


155,505


162,504


168,006

        Income before income taxes

104,902


82,851


95,350


79,324


30,020

Income tax expense

23,347


14,046


21,525


18,164


5,759

        Net income

$        81,555


$       68,805


$          73,825


$        61,160


$       24,261

Less: Preferred dividends

2,372


2,372


2,372


2,372


2,372

        Net income available to common shareholders

$        79,183


$       66,433


$          71,453


$        58,788


$       21,889











Net income per common share: Basic

$            0.77


$           0.65


$              0.70


$            0.57


$           0.21

                                                   Diluted

$            0.77


$           0.65


$              0.69


$            0.57


$           0.21

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Mar-21


Dec-20


Sep-20


Jun-20


Mar-20

LOAN AND LEASE PORTFOLIO:










Commercial and industrial










   Commercial and industrial-non real estate

2,865,706


2,673,429


2,937,608


3,038,957


2,008,043

   Commercial and industrial-owner occupied

2,260,456


2,281,127


2,297,008


2,296,287


2,290,585

      Total commercial and industrial

5,126,162


4,954,556


5,234,616


5,335,244


4,298,628

Commercial real estate










   Agricultural

337,710


317,994


333,839


333,615


339,539

   Construction, acquisition and development

1,707,800


1,728,682


1,700,030


1,658,678


1,582,039

   Commercial real estate

3,127,510


3,211,434


3,229,959


3,323,744


3,303,537

      Total commercial real estate

5,173,020


5,258,110


5,263,828


5,316,037


5,225,115

Consumer










   Consumer mortgages

3,700,076


3,726,241


3,704,490


3,646,168


3,572,277

   Home equity

608,924


630,097


658,708


655,543


686,202

   Credit cards

81,499


89,077


85,760


86,592


93,896

      Total consumer

4,390,499


4,445,415


4,448,958


4,388,303


4,352,375

All other

349,127


364,398


380,333


387,837


348,527

      Total loans

$  15,038,808


$  15,022,479


$  15,327,735


$  15,427,421


$  14,224,645











ALLOWANCE FOR CREDIT LOSSES:










Balance, beginning of period

$      244,422


$      250,624


$      237,025


$       218,199


$      119,066











Impact of adopting ASC 326 - cumulative effect adjustment

-


-


-


-


40,000











Impact of adopting ASC 326 - purchased loans with credt










   deterioration

-


-


-


-


22,634











Loans and leases charged-off:










Commercial and industrial










   Commercial and industrial-non real estate

(2,269)


(4,343)


(560)


(1,506)


(10,792)

   Commercial and industrial-owner occupied

(677)


(1,168)


(441)


(13)


(184)

     Total commercial and industrial

(2,946)


(5,511)


(1,001)


(1,519)


(10,976)

Commercial real estate










   Agricultural

(98)


(155)


-


(21)


(65)

   Construction, acquisition and development

(807)


(1,773)


-


(9)


(3,173)

   Commercial real estate

(478)


(3,134)


(738)


-


(67)

     Total commercial real estate

(1,383)


(5,062)


(738)


(30)


(3,305)

Consumer










   Consumer mortgages

(293)


(731)


(81)


(124)


(524)

   Home equity

(50)


(395)


(41)


(162)


(236)

   Credit cards

(733)


(458)


(682)


(703)


(798)

     Total consumer

(1,076)


(1,584)


(804)


(989)


(1,558)

All other

(501)


(875)


(599)


(396)


(914)

     Total loans charged-off

(5,906)


(13,032)


(3,142)


(2,934)


(16,753)











Recoveries:










Commercial and industrial










   Commercial and industrial-non real estate

1,031


779


294


277


355

   Commercial and industrial-owner occupied

62


37


163


136


1,179

     Total commercial and industrial

1,093


816


457


413


1,534

Commercial real estate










   Agricultural

86


24


3


6


6

   Construction, acquisition and development

53


73


55


172


245

   Commercial real estate

56


45


209


50


135

     Total commercial real estate

195


142


267


228


386

Consumer










   Consumer mortgages

403


230


352


345


397

   Home equity

220


151


132


259


80

   Credit cards

297


211


270


195


285

     Total consumer

920


592


754


799


762

All other

393


280


263


320


344

     Total recoveries

2,601


1,830


1,741


1,760


3,026











Net (charge-offs)recoveries

(3,305)


(11,202)


(1,401)


(1,174)


(13,727)











Initial allowance on loans purchased with credit deterioration

-


-


-


-


4,226











Provision:










   Initial provision for loans acquired during the quarter

-


-


-


-


1,000

   Provision for credit losses related to loans and leases

-


5,000


15,000


20,000


45,000

     Total provision

-


5,000


15,000


20,000


46,000











Balance, end of period

$      241,117


$      244,422


$      250,624


$       237,025


$      218,199











Average loans for period

$ 15,029,076


$ 15,219,402


$ 15,369,684


$ 15,114,732


$ 14,226,788











Ratio:










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

0.09%


0.29%


0.04%


0.03%


0.39%











 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)














Quarter Ended



Mar-21


Dec-20


Sep-20


Jun-20


Mar-20

BXS ORIGINATED LOANS AND LEASES:






















Loans and leases charged off:











Commercial and industrial











   Commercial and industrial-non real estate


$        (1,971)


$       (1,991)


$          (490)


$           (420)


$          (230)

   Commercial and industrial-owner occupied


(187)


(303)


(434)


(13)


(19)

     Total commercial and industrial


(2,158)


(2,294)


(924)


(433)


(249)

Commercial real estate











   Agricultural


(94)


(124)


-


-


(65)

   Construction, acquisition and development


(344)


(1,709)


-


-


(121)

   Commercial real estate


(27)


(1,704)


(155)


-


(67)

     Total real estate


(465)


(3,537)


(155)


-


(253)

Consumer











   Consumer mortgages


(181)


(537)


(70)


(113)


(357)

   Home equity


(50)


(395)


(41)


(162)


(236)

   Credit cards


(733)


(458)


(682)


(703)


(798)

     Total consumer


(964)


(1,390)


(793)


(978)


(1,391)

All other


(399)


(698)


(459)


(288)


(704)

     Total loans charged off


(3,986)


(7,919)


(2,331)


(1,699)


(2,597)












Recoveries:











Commercial and industrial











   Commercial and industrial-non real estate


387


645


231


210


325

   Commercial and industrial-owner occupied


61


27


163


136


1,177

     Total commercial and industrial


448


672


394


346


1,502

Commercial real estate











   Agricultural


5


23


3


5


4

   Construction, acquisition and development


51


73


55


170


244

   Commercial real estate


36


45


208


50


135

     Total real estate


92


141


266


225


383

Consumer











   Consumer mortgages


392


221


350


343


395

   Home equity


219


149


130


258


79

   Credit cards


297


211


270


195


285

     Total consumer


908


581


750


796


759

All other


325


249


235


275


316

     Total recoveries


1,773


1,643


1,645


1,642


2,960












Net (charge-offs)/recoveries


$        (2,213)


$       (6,276)


$          (686)


$            (57)


$            363

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Mar-21


Dec-20


Sep-20


Jun-20


Mar-20

ACQUIRED LOANS AND LEASES:




















Loans and leases charged off:










Commercial and industrial










   Commercial and industrial-non real estate

$           (298)


$       (2,352)


$            (70)


$        (1,086)


$      (10,562)

   Commercial and industrial-owner occupied

(490)


(865)


(7)


-


(165)

     Total commercial and industrial

(788)


(3,217)


(77)


(1,086)


(10,727)

Commercial real estate










   Agricultural

(4)


(31)


-


(21)


-

   Construction, acquisition and development

(463)


(64)


-


(9)


(3,052)

   Commercial real estate

(451)


(1,430)


(583)


-


-

     Total real estate

(918)


(1,525)


(583)


(30)


(3,052)

Consumer










   Consumer mortgages

(112)


(194)


(11)


(11)


(167)

   Home equity

-


-


-


-


-

   Credit cards

-


-


-


-


-

     Total consumer

(112)


(194)


(11)


(11)


(167)

All other

(102)


(177)


(140)


(108)


(210)

     Total loans charged off

(1,920)


(5,113)


(811)


(1,235)


(14,156)











Recoveries:










Commercial and industrial










   Commercial and industrial-non real estate

644


134


63


67


30

   Commercial and industrial-owner occupied

1


10


-


-


2

     Total commercial and industrial

645


144


63


67


32

Commercial real estate










   Agricultural

81


1


-


1


2

   Construction, acquisition and development

2


-


-


2


1

   Commercial real estate

20


-


1


-


-

     Total real estate

103


1


1


3


3

Consumer










   Consumer mortgages

11


9


2


2


2

   Home equity

1


2


2


1


1

   Credit cards

-


-


-


-


-

     Total consumer

12


11


4


3


3

All other

68


31


28


45


28

     Total recoveries

828


187


96


118


66











Net (charge-offs)/recoveries

$        (1,092)


$       (4,926)


$          (715)


$        (1,117)


$      (14,090)

 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)












Quarter Ended


Mar-21


Dec-20


Sep-20


Jun-20


Mar-20

NON-PERFORMING ASSETS










NON-PERFORMING LOANS AND LEASES:










  Nonaccrual Loans and Leases










    Commercial and industrial










       Commercial and industrial-non real estate

$      9,703


$       12,768


$       17,936


$    16,124


$       16,589

       Commercial and industrial-owner occupied

15,019


15,783


18,343


16,745


11,212

         Total commercial and industrial

24,722


28,551


36,279


32,869


27,801

    Commercial real estate










       Agricultural

2,293


5,013


5,907


5,244


5,454

       Construction, acquisition and development

8,494


9,738


10,434


9,715


13,899

       Commercial real estate

12,838


16,249


32,554


45,047


29,697

         Total commercial real estate

23,625


31,000


48,895


60,006


49,050

    Consumer










       Consumer mortgages

23,535


32,951


32,872


30,672


29,834

       Home equity

847


2,657


3,325


2,584


2,597

       Credit cards

131


173


144


90


122

         Total consumer

24,513


35,781


36,341


33,346


32,553

    All other

282


1,046


593


532


670

         Total nonaccrual loans and leases

$    73,142


$       96,378


$      122,108


$  126,753


$      110,074











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

21,208


14,320


17,641


9,877


7,272

  Restructured Loans and Leases, Still Accruing

6,971


10,475


11,154


11,575


11,284

     Total non-performing loans and leases

$  101,321


$      121,173


$      150,903


$  148,205


$      128,630











OTHER REAL ESTATE OWNED:

9,351


11,395


6,397


7,164


9,200











Total Non-performing Assets

$  110,672


$      132,568


$      157,300


$  155,369


$      137,830











  BXS originated assets

$    85,266


$       97,025


$      109,418


$    94,155


$       85,908

  Acquired assets

25,406


35,543


47,882


61,214


51,922

Total Non-performing Assets

$  110,672


$      132,568


$      157,300


$  155,369


$      137,830











Additions to Nonaccrual Loans and Leases During the Quarter

$    10,029


$       11,087


$       19,973


$    36,619


$       47,523











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










    BXS originated loans

$    34,929


$       40,424


$       42,978


$    35,002


$       54,315

    Acquired loans

2,798


6,048


5,694


10,450


14,405

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

$    37,727


$       46,472


$       48,672


$    45,452


$       68,720











 

BancorpSouth Bank


Selected Loan Data


(Dollars in thousands)


(Unaudited)














March 31, 2021









Purchased






Special





Credit





Pass

Mention

Substandard

Doubtful

Loss

Impaired

Deteriorated (Loss)


Total


LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:











Commercial and industrial











   Commercial and industrial-non real estate

$   2,825,297

$                -

$       30,526

$        171

$                -

$    1,909

$                7,803


$          2,865,706


   Commercial and industrial-owner occupied

2,184,516

3,471

58,754

-

-

11,086

2,629


2,260,456


     Total commercial and industrial

5,009,813

3,471

89,280

171

-

12,995

10,432


5,126,162


Commercial real estate











   Agricultural

331,802

-

2,877

-

-

705

2,326


337,710


   Construction, acquisition and development

1,659,787

1,534

38,665

-

-

2,448

5,366


1,707,800


   Commercial real estate

2,987,075

-

127,147

-

-

9,642

3,646


3,127,510


     Total commercial real estate

4,978,664

1,534

168,689

-

-

12,795

11,338


5,173,020


Consumer











   Consumer mortgages

3,629,182

-

67,881

-

-

2,825

188


3,700,076


   Home equity

603,768

-

5,156

-

-

-

-


608,924


   Credit cards

81,499

-

-

-

-

-

-


81,499


     Total consumer

4,314,449

-

73,037

-

-

2,825

188


4,390,499


All other

343,656

-

5,404

-

-

-

67


349,127


     Total loans

$ 14,646,582

$         5,005

$      336,410

$        171

$                -

$  28,615

$              22,025


$         15,038,808













  BXS originated loans

$ 13,635,053

$         5,005

$      252,140

$        171

$                -

$  18,188

$                    -


$         13,910,557


  Acquired loans*

1,011,529

-

84,270

-

-

10,427

22,025


1,128,251


     Total Loans

$ 14,646,582

$         5,005

$      336,410

$        171

$                -

$  28,615

$              22,025


$         15,038,808














December 31, 2020









Purchased






Special





Credit





Pass

Mention

Substandard

Doubtful

Loss

Impaired

Deteriorated (Loss)


Total


LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:











Commercial and industrial











   Commercial and industrial-non real estate

$   2,616,471

$         7,202

$       39,040

$        172

$                -

$    1,949

$                8,595


$          2,673,429


   Commercial and industrial-owner occupied

2,208,214

-

58,683

-

-

11,579

2,651


2,281,127


     Total commercial and industrial

4,824,685

7,202

97,723

172

-

13,528

11,246


4,954,556


Commercial real estate











   Agricultural

310,766

-

4,526

-

-

777

1,925


317,994


   Construction, acquisition and development

1,686,907

1,534

32,363

-

-

2,054

5,824


1,728,682


   Commercial real estate

3,062,894

-

134,054

-

-

10,780

3,706


3,211,434


     Total commercial real estate

5,060,567

1,534

170,943

-

-

13,611

11,455


5,258,110


Consumer











   Consumer mortgages

3,645,357

-

78,287

-

-

2,406

191


3,726,241


   Home equity

624,581

-

5,516

-

-

-

-


630,097


   Credit cards

89,077

-

-

-

-

-

-


89,077


     Total consumer

4,359,015

-

83,803

-

-

2,406

191


4,445,415


All other

357,812

-

6,519

-

-

-

67


364,398


     Total loans

$ 14,602,079

$         8,736

$      358,988

$        172

$                -

$  29,545

$              22,959


$         15,022,479













  BXS originated loans

$ 13,459,529

$         8,736

$      259,682

$        172

$                -

$  17,520

$                    -


$         13,745,639


  Acquired loans*

1,142,550

-

99,306

-

-

12,025

22,959


1,276,840


     Total Loans

$ 14,602,079

$         8,736

$      358,988

$        172

$                -

$  29,545

$              22,959


$         15,022,479
























*Includes certain loans that are no longer included in the "Net book value of acquired loans" on page 10 as a result of maturity, refinance, or other triggering event.




 

BancorpSouth Bank

Selected Loan Data

(Dollars in thousands)

(Unaudited)
































Quarter Ended


Mar-21


Dec-20


Sep-20


Jun-20


Mar-20

LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:










Pass

$ 14,646,582


$ 14,602,079


$ 14,877,943


$ 14,985,673


$  13,821,602

Special Mention

5,005


8,736


-


4,264


7,129

Substandard

336,410


358,988


372,483


350,264


323,697

Doubtful

171


172


178


179


191

Loss

-


-


-


-


667

Impaired

28,615


29,545


49,818


57,406


40,627

Purchased Credit Deteriorated (Loss)

22,025


22,959


27,313


29,635


30,732

   Total

$ 15,038,808


$ 15,022,479


$ 15,327,735


$ 15,427,421


$  14,224,645











BXS ORIGINATED LOAN PORTFOLIO BY INTERNALLY










   ASSIGNED GRADE:










Pass

$ 13,635,053


$ 13,459,529


$ 13,592,460


$ 13,516,292


$  12,150,616

Special Mention

5,005


8,736


-


2,741


2,045

Substandard

252,140


259,682


252,875


231,687


225,506

Doubtful

171


172


178


179


191

Loss

-


-


-


-


-

Impaired

18,188


17,520


30,909


28,288


22,356

Purchased Credit Deteriorated (Loss)

-


-


-


-


-

   Total

$ 13,910,557


$ 13,745,639


$ 13,876,422


$ 13,779,187


$  12,400,714











ACQUIRED LOAN PORTFOLIO BY INTERNALLY










   ASSIGNED GRADE:










Pass

$  1,011,529


$   1,142,550


$  1,285,483


$   1,469,381


$    1,670,986

Special Mention

-


-


-


1,523


5,084

Substandard

84,270


99,306


119,608


118,577


98,191

Doubtful

-


-


-


-


-

Loss

-


-


-


-


667

Impaired

10,427


12,025


18,909


29,118


18,271

Purchased Credit Deteriorated (Loss)

22,025


22,959


27,313


29,635


30,732

   Total

$  1,128,251


$   1,276,840


$  1,451,313


$   1,648,234


$    1,823,931











 

BancorpSouth Bank

Geographical Information

(Dollars in thousands)

(Unaudited)












March 31, 2021


Alabama










and Florida










Panhandle

Arkansas

Louisiana

Mississippi

Missouri

Tennessee

Texas

Other

Total

LOAN AND LEASE PORTFOLIO:










Commercial and industrial










   Commercial and industrial-non real estate

$    254,421

$    205,840

$    331,255

$    674,111

$      87,701

$    175,804

$ 1,132,825

$       3,749

$   2,865,706

   Commercial and industrial-owner occupied

265,198

180,900

229,123

592,555

64,563

123,882

787,661

16,574

2,260,456

     Total commercial and industrial

519,619

386,740

560,378

1,266,666

152,264

299,686

1,920,486

20,323

5,126,162

Commercial real estate










   Agricultural

26,692

69,704

22,287

69,210

7,834

11,234

130,343

406

337,710

   Construction, acquisition and development

202,159

52,596

74,407

346,196

12,741

83,245

936,258

198

1,707,800

   Commercial real estate

316,143

320,806

243,605

645,649

204,343

218,316

1,177,921

727

3,127,510

     Total commercial real estate

544,994

443,106

340,299

1,061,055

224,918

312,795

2,244,522

1,331

5,173,020

Consumer










   Consumer mortgages

594,984

319,060

326,864

811,487

110,284

327,596

1,157,824

51,977

3,700,076

   Home equity

92,721

44,282

73,245

209,906

16,218

130,875

41,573

104

608,924

   Credit cards

-

-

-

-

-

-

-

81,499

81,499

     Total consumer

687,705

363,342

400,109

1,021,393

126,502

458,471

1,199,397

133,580

4,390,499

All other

48,036

36,285

46,268

117,094

2,030

22,245

73,793

3,376

349,127

     Total loans

$ 1,800,354

$ 1,229,473

$ 1,347,054

$ 3,466,208

$    505,714

$ 1,093,197

$ 5,438,198

$    158,610

$ 15,038,808











Loan growth, excluding loans acquired during










    the quarter (annualized)

3.07%

(10.00%)

(4.59%)

(6.36%)

(13.63%)

3.29%

9.32%

(21.40%)

0.44%

Loan growth, excluding PPP loans (annualized)

(0.62%)

(13.30%)

(13.71%)

(9.37%)

(16.50%)

(1.02%)

4.46%

(41.87%)

(4.16%)











NON-PERFORMING LOANS AND LEASES:










Commercial and industrial










   Commercial and industrial-non real estate

$          188

$          776

$       1,176

$          841

$       1,162

$          422

$       5,546

$          156

$       10,267

   Commercial and industrial-owner occupied

607

1,225

373

1,512

166

-

13,351

-

17,234

     Total commercial and industrial

795

2,001

1,549

2,353

1,328

422

18,897

156

27,501

Commercial real estate










   Agricultural

63

337

-

965

-

-

1,522

-

2,887

   Construction, acquisition and development

-

131

1,149

83

-

189

10,838

-

12,390

   Commercial real estate

2,027

243

1,766

896

-

-

8,584

-

13,516

     Total commercial real estate

2,090

711

2,915

1,944

-

189

20,944

-

28,793

Consumer










   Consumer mortgages

11,093

2,942

2,975

11,157

1,120

2,597

8,481

2,027

42,392

   Home equity

163

52

298

388

87

131

294

-

1,413

   Credit cards

-

-

-

-

-

-

-

832

832

     Total consumer

11,256

2,994

3,273

11,545

1,207

2,728

8,775

2,859

44,637

All other

43

1

45

42

-

3

234

22

390

     Total loans

$      14,184

$       5,707

$       7,782

$      15,884

$       2,535

$       3,342

$      48,850

$       3,037

$      101,321











NON-PERFORMING LOANS AND LEASES










   AS A PERCENTAGE OF OUTSTANDING:










Commercial and industrial










   Commercial and industrial-non real estate

0.07%

0.38%

0.36%

0.12%

1.32%

0.24%

0.49%

4.16%

0.36%

   Commercial and industrial-owner occupied

0.23%

0.68%

0.16%

0.26%

0.26%

0.00%

1.70%

0.00%

0.76%

     Total commercial and industrial

0.15%

0.52%

0.28%

0.19%

0.87%

0.14%

0.98%

0.77%

0.54%

Commercial real estate










   Agricultural

0.24%

0.48%

0.00%

1.39%

0.00%

0.00%

1.17%

0.00%

0.85%

   Construction, acquisition and development

0.00%

0.25%

1.54%

0.02%

0.00%

0.23%

1.16%

0.00%

0.73%

   Commercial real estate

0.64%

0.08%

0.72%

0.14%

0.00%

0.00%

0.73%

0.00%

0.43%

     Total commercial real estate

0.38%

0.16%

0.86%

0.18%

0.00%

0.06%

0.93%

0.00%

0.56%

Consumer










   Consumer mortgages

1.86%

0.92%

0.91%

1.37%

1.02%

0.79%

0.73%

3.90%

1.15%

   Home equity

0.18%

0.12%

0.41%

0.18%

0.54%

0.10%

0.71%

0.00%

0.23%

   Credit cards

N/A

N/A

N/A

N/A

N/A

N/A

N/A

1.02%

1.02%

     Total consumer

1.64%

0.82%

0.82%

1.13%

0.95%

0.60%

0.73%

2.14%

1.02%

All other

0.09%

0.00%

0.10%

0.04%

0.00%

0.01%

0.32%

0.65%

0.11%

     Total loans

0.79%

0.46%

0.58%

0.46%

0.50%

0.31%

0.90%

1.91%

0.67%











 

BancorpSouth Bank

Noninterest Revenue and Expense

(Dollars in thousands)

(Unaudited)













Quarter Ended



Mar-21


Dec-20


Sep-20


Jun-20


Mar-20


NONINTEREST REVENUE:











Mortgage banking excl. MSR and MSR Hedge market value adj

$    17,929


$       19,917


$       26,667


$    31,930


$       20,553


MSR and MSR Hedge market value adjustment

7,381


212


430


(2,373)


(11,083)


Credit card, debit card and merchant fees

9,659


10,053


9,938


9,080


9,176


Deposit service charges

8,477


9,708


8,892


7,647


11,682


Securities gains (losses), net

82


63


18


62


(85)


Insurance commissions

30,667


29,815


32,750


33,118


29,603


Trust income

5,129


4,046


3,902


4,064


4,013


Annuity fees

51


53


53


54


55


Brokerage commissions and fees

3,285


2,652


2,516


2,303


2,502


Bank-owned life insurance

2,020


2,425


1,902


1,855


1,999


Other miscellaneous income

3,256


(118)


2,856


3,518


8,081


     Total noninterest revenue

$    87,936


$       78,826


$       89,924


$    91,258


$       76,496













NONINTEREST EXPENSE:











Salaries and employee benefits

$  101,060


$       97,215


$      104,219


$  108,103


$      108,272


Occupancy, net of rental income

12,814


13,004


13,053


12,890


12,708


Equipment

4,564


4,756


4,519


4,762


4,649


Deposit insurance assessments

1,455


1,696


1,522


1,962


1,546


Pension settlement expense

-


5,846


-


-


-


Advertising

1,004


899


826


918


1,099


Foreclosed property expense

1,021


2,122


(278)


1,306


924


Telecommunications

1,398


1,448


1,462


1,512


1,461


Public relations

741


897


1,130


459


680


Data processing

10,424


9,980


9,477


9,693


9,646


Computer software

5,113


5,301


4,779


4,979


4,315


Amortization of intangibles

2,318


2,499


2,357


2,355


2,394


Legal

1,166


1,474


(316)


1,375


898


Merger expense

1,649


212


129


510


4,494


Postage and shipping

1,547


1,418


1,199


1,198


1,441


Other miscellaneous expense

9,549


19,144


11,427


10,482


13,479


     Total noninterest expense

$  155,823


$      167,911


$      155,505


$  162,504


$      168,006













INSURANCE COMMISSIONS:











Property and casualty commissions

$    21,949


$       21,304


$       24,060


$    23,644


$       21,246


Life and health commissions

6,494


5,915


6,072


6,771


6,175


Risk management income

613


829


609


540


532


Other

1,611


1,767


2,009


2,163


1,650


     Total insurance commissions

$    30,667


$       29,815


$       32,750


$    33,118


$       29,603













 

BancorpSouth Bank

Selected Additional Information

(Dollars in thousands)

(Unaudited)








Quarter Ended


Mar-21

Dec-20

Sep-20

Jun-20

Mar-20

MORTGAGE SERVICING RIGHTS:






Fair value, beginning of period

$      47,571

$       44,944

$       40,821

$      42,243

$       57,109

Additions to mortgage servicing rights:






   Originations of servicing assets

5,588

6,608

7,041

4,297

3,079

Changes in fair value:






   Due to payoffs/paydowns

(3,273)

(3,898)

(3,198)

(3,144)

(2,506)

   Due to change in valuation inputs or






     assumptions used in the valuation model

10,446

(83)

280

(2,575)

(15,438)

   Other changes in fair value

-

-

-

-

(1)

Fair value, end of period

$      60,332

$       47,571

$       44,944

$      40,821

$       42,243







MORTGAGE BANKING REVENUE:






Production revenue:






   Origination

$      15,955

$       18,561

$       23,632

$      30,194

$       17,906

   Servicing

5,247

5,254

6,233

4,880

5,153

   Payoffs/Paydowns

(3,273)

(3,898)

(3,198)

(3,144)

(2,506)

     Total production revenue

17,929

19,917

26,667

31,930

20,553

Market value adjustment on MSR

10,446

(83)

280

(2,575)

(15,438)

Market value adjustment on MSR Hedge

(3,065)

295

150

202

4,355

Total mortgage banking revenue

$      25,310

$       20,129

$       27,097

$      29,557

$         9,470



















Mortgage loans serviced

$ 7,259,808

$   7,330,293

$   7,218,090

$ 7,000,425

$   6,999,383

MSR/mtg loans serviced

0.83%

0.65%

0.62%

0.58%

0.60%







AVAILABLE-FOR-SALE SECURITIES, at fair value






U.S. Government agencies

2,642,646

2,871,408

$   3,116,458

$ 3,348,206

$   3,532,905

U.S. Government agency issued residential






   mortgage-back securities

3,438,246

2,421,409

1,625,325

699,864

132,902

U.S. Government agency issued commercial






   mortgage-back securities

1,414,345

806,206

758,116

759,980

595,885

Obligations of states and political subdivisions

126,589

113,953

141,896

163,121

206,648

Corporate bonds

18,442

18,030

17,990

2,000

-

Total available-for-sale securities

$ 7,640,268

$   6,231,006

$   5,659,785

$ 4,973,171

$   4,468,340







 

BancorpSouth Bank

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(Dollars in thousands, except per share amounts)

(Unaudited)



Management evaluates the Company's capital position and operating performance by utilizing certain financial measures not calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including net operating income, net operating income available to common shareholders, net operating income-excluding MSR, net operating income available to common shareholders-excluding MSR, pre-tax pre-provision net revenue, total operating expense, tangible shareholders' equity to tangible assets, tangible shareholders' equity to tangible assets-excluding PPP loans, tangible common shareholders' equity to tangible assets, tangible common shareholders' equity to tangible assets-excluding PPP loans, return on average tangible equity, return on average tangible common equity, operating return on average tangible equity-excluding MSR, operating return on average tangible common equity-excluding MSR,  operating return on average assets-excluding MSR, operating return on average shareholders' equity-excluding MSR, operating return on average common shareholders' equity-excluding MSR, pre-tax pre-provision net revenue to total average assets, average tangible book value per common share, operating earnings per common share, operating earnings per common share-excluding MSR, efficiency ratio (tax equivalent) and operating efficiency ratio-excluding MSR (tax equivalent).  The Company has included these non-GAAP financial measures in this news release for the applicable periods presented.  Management believes that the presentation of these non-GAAP financial measures (i) provides important supplemental information that contributes to a proper understanding of the Company's capital position and operating performance, (ii) enables a more complete understanding of factors and trends affecting the Company's business and (iii) allows investors to evaluate the Company's performance in a manner similar to management, the financial services industry, bank stock analysts and bank regulators.  Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are presented in the tables below.  These non-GAAP financial measures should not be considered as substitutes for GAAP financial measures, and the Company strongly encourages investors to review the GAAP financial measures included in this news release and not to place undue reliance upon any single financial measure.  In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this news release with other companies' non-GAAP financial measures having the same or similar names.


Reconciliation of Net Operating Income, Net Operating Income Available to Common Shareholders, Net Operating Income-Excluding MSR, and Net Operating Income Available to Common Shareholders-excluding MSR to Net Income:

 




Quarter ended




3/31/2021


12/31/2020


9/30/2020


6/30/2020


3/31/2020













Net income


$      81,555


$      68,805


$       73,825


$          61,160


$          24,261

Plus:

Merger expense, net of tax


1,238


159


97


383


3,372


Initial provision for acquired loans,












  net of tax


-


-


-


-


751


Pension settlement expense, net of tax


-


4,388


-


-


-

Less:

Security gains(losses), net of tax


62


48


13


47


(64)

Net operating income


$      82,731


$      73,304


$       73,909


$          61,496


$          28,448

Less:

Preferred dividends


2,372


2,372


2,372


2,372


2,372

Net operating income available to











common shareholders


$      80,359


$      70,932


$       71,537


$          59,124


$          26,076

























Net operating income


$      82,731


$      73,304


$       73,909


$          61,496


$          28,448

Less:

MSR market value adjustment, net of tax


5,539


159


323


(1,781)


(8,318)

Net operating income-excluding MSR


$      77,192


$      73,145


$       73,586


$          63,277


$          36,766

Less:

Preferred dividends


2,372


2,372


2,372


2,372


2,372

Net operating income available to common











shareholders-excluding MSR


$      74,820


$      70,773


$       71,214


$          60,905


$          34,394

























Reconciliation of Net Income to Pre-Tax Pre-Provision Net Revenue




















Net income


$      81,555


$      68,805


$       73,825


$          61,160


$          24,261

Plus:

Provision for credit losses


-


5,000


15,000


20,000


46,000


Merger expense


1,649


212


129


510


4,494


Pension settlement expense


-


5,846


-


-


-


Income tax expense


23,347


14,046


21,525


18,164


5,759

Less:

Security gains(losses)


82


63


18


62


(85)


MSR market value adjustment


7,381


212


430


(2,373)


(11,083)

Pre-tax pre-provision net revenue


$      99,088


$      93,634


$     110,031


$         102,145


$          91,682

























Reconciliation of Total Operating Expense to Total Noninterest Expense:



















Total noninterest expense


$    155,823


$    167,911


$     155,505


$         162,504


$         168,006

Less:

Merger expense


1,649


212


129


510


4,494


Pension settlement expense


-


5,846


-


-


-

Total operating expense


$    154,174


$    161,853


$     155,376


$         161,994


$         163,512













 

BancorpSouth Bank

Reconciliation of Non-GAAP Measures and Other Non-GAAP Ratio Definitions

(Dollars in thousands, except per share amounts)

(Unaudited)





































Reconciliation of Tangible Assets and Tangible Shareholders' Equity to











Total Assets and Total Shareholders' Equity:


























Quarter ended




3/31/2021


12/31/2020


9/30/2020


6/30/2020


3/31/2020

Tangible assets











Total assets


$ 25,802,497


$  24,081,194


$  23,555,422


$ 23,236,176


$  21,032,524

Less: 

Goodwill


851,612


851,612


847,531


847,984


848,242


Other identifiable intangible assets


53,581


55,899


54,757


56,989


59,345

Total tangible assets


$ 24,897,304


$  23,173,683


$  22,653,134


$ 22,331,203


$  20,124,937

Less: 

PPP loans


1,146,000


975,421


1,212,246


1,192,715


-

Total tangible assets-excluding PPP loans


$ 23,751,304


$  22,198,262


$  21,440,888


$ 21,138,488


$  20,124,937













PERIOD END BALANCES:











Tangible shareholders' equity











Total shareholders' equity


$   2,825,198


$    2,822,477


$    2,782,539


$   2,732,687


$    2,681,904

Less:

Goodwill


851,612


851,612


847,531


847,984


848,242


Other identifiable intangible assets


53,581


55,899


54,757


56,989


59,345

Total tangible shareholders' equity


$   1,920,005


$    1,914,966


$    1,880,251


$   1,827,714


$    1,774,317

Less:

Preferred stock


166,993


166,993


166,993


166,993


166,993

Total tangible common shareholders' equity


$   1,753,012


$    1,747,973


$    1,713,258


$   1,660,721


$    1,607,324













AVERAGE BALANCES:











Tangible shareholders' equity











Total shareholders' equity


$   2,813,001


$    2,774,589


$    2,729,870


$   2,738,434


$    2,658,699

Less:

Goodwill


851,612


852,472


847,744


848,160


844,635


Other identifiable intangible assets


54,876


54,858


56,045


58,280


58,805

Total tangible shareholders' equity


$   1,906,513


$    1,867,259


$    1,826,081


$   1,831,994


$    1,755,259

Less:

Preferred stock


166,993


166,993


166,993


166,993


167,021

Total tangible common shareholders' equity


$   1,739,520


$    1,700,266


$    1,659,088


$   1,665,001


$    1,588,238













Total average assets


$ 24,545,560


$  23,660,503


$  23,318,877


$ 22,707,686


$  21,189,637

Total shares of common stock outstanding


102,624,818


102,561,480


102,558,459


102,566,301


102,632,484

Average shares outstanding-diluted


102,711,584


102,817,409


102,839,749


102,827,225


104,733,897













Tangible shareholders' equity to tangible assets (1)


7.71%


8.26%


8.30%


8.18%


8.82%

Tangible shareholders' equity to tangible assets-excluding PPP loans (2)


8.08%


8.63%


8.77%


8.65%


8.82%

Tangible common shareholders' equity to tangible assets (3)


7.04%


7.54%


7.56%


7.44%


7.99%

Tangible common shareholders' equity to tangible assets-excluding PPP loans (4)


7.38%


7.87%


7.99%


7.86%


7.99%

Return on average tangible equity (5)


17.35%


14.66%


16.08%


13.43%


5.56%

Return on average tangible common equity (6)


18.46%


15.54%


17.13%


14.20%


5.54%

Operating return on average tangible equity-excluding MSR (7)


16.42%


15.58%


16.03%


13.89%


8.42%

Operating return on average tangible common equity-excluding MSR (8)


17.44%


16.56%


17.08%


14.71%


8.71%

Operating return on average assets-excluding MSR (9)


1.28%


1.23%


1.26%


1.12%


0.70%

Operating return on average shareholders' equity-excluding MSR (10)


11.13%


10.49%


10.72%


9.29%


5.56%

Operating return on average common shareholders' equity-excluding MSR (11)


11.47%


10.80%


11.05%


9.53%


5.55%

Pre-tax pre-provision net revenue to total average assets (12)


1.64%


1.57%


1.88%


1.81%


1.74%

Tangible book value per common share (13)


$         17.08


$          17.04


$          16.71


$         16.19


$         15.66

Operating earnings per common share (14)


$           0.78


$            0.69


$            0.70


$           0.57


$           0.25

Operating earnings per common share-excluding MSR (15)


$           0.73


$            0.69


$            0.69


$           0.59


$           0.33













 

(1)

Tangible shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill and other identifiable intangible assets.

(2)

Tangible shareholders' equity to tangible assets-excluding PPP loans is defined by the Company as total shareholders' equity less goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill, other identifiable intangible assets, and PPP loans.

(3)

Tangible common shareholders' equity to tangible assets is defined by the Company as total shareholders' equity less preferred stock, goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill and other identifiable intangible assets.

(4)

Tangible common shareholders' equity to tangible assets-excluding PPP loans is defined by the Company as total shareholders' equity less preferred stock, goodwill and other identifiable intangible assets, divided by the difference of total assets less goodwill, other identifiable intangible assets, and PPP loans.

(5)

Return on average tangible equity is defined by the Company as annualized net income divided by average tangible shareholders' equity.

(6)

Return on average tangible common equity is defined by the Company as annualized net income available to common shareholders divided by average tangible common shareholders' equity.

(7)

Operating return on average tangible equity-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by average tangible shareholders' equity.

(8)

Operating return on average tangible common equity-excluding MSR is defined by the Company as annualized net operating income available to common shareholders-excluding MSR divided by average tangible common shareholders' equity.

(9)

Operating return on average assets-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by total average assets.

(10)

Operating return on average shareholders' equity-excluding MSR is defined by the Company as annualized net operating income-excluding MSR divided by average shareholders' equity.

(11)

Operating return on average common shareholders' equity-excluding MSR is defined by the Company as annualized net operating income available to common shareholders-excluding MSR divided by average common shareholders' equity.

(12)

Pre-tax pre-provision net revenue to total average assets is defined by the Company as annualized pre-tax pre-provision net revenue divided by total average assets adjusted for other non-operating items included in the definition and calculation of net operating income-excluding MSR.

(13)

Tangible book value per common share is defined by the Company as tangible common shareholders' equity divided by total shares of common stock outstanding.













(14)

Operating earnings per common share is defined by the Company as net operating income available to common shareholders divided by average common shares outstanding-diluted.













(15)

Operating earnings per common share-excluding MSR is defined by the Company as net operating income available to common shareholders-excluding MSR divided by average common shares outstanding-diluted.













Efficiency Ratio (tax equivalent) and Operating Efficiency Ratio-excluding MSR (tax equivalent) Definitions


The efficiency ratio (tax equivalent) and the operating efficiency ratio-excluding MSR (tax equivalent) are supplemental financial measures utilized in management's internal evaluation of the Company's use of resources and are not defined under GAAP. The efficiency ratio (tax equivalent) is calculated by dividing total noninterest expense by total revenue, which includes net interest income plus noninterest income plus the tax equivalent adjustment.  The operating efficiency ratio-excluding MSR (tax equivalent) excludes expense  items otherwise disclosed as non-operating from total noninterest expense.  In addition, the MSR valuation adjustment as well as securities gains and losses are excluded from total revenue.

 

 

Cision View original content:http://www.prnewswire.com/news-releases/bancorpsouth-announces-first-quarter-2021-results-301274326.html

SOURCE BancorpSouth Bank

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
bottom clear