TUPELO, Miss., July 23, 2012 /PRNewswire/ -- BancorpSouth, Inc. (NYSE: BXS) today announced financial results for the quarter ended June 30, 2012.

            Highlights for the second quarter of 2012 included:

• Net income of $20.6 million, or $0.22 per diluted share, despite a negative pre-tax mortgage servicing rights ("MSR") valuation adjustment of $3.8 million.
• Other real estate owned ("OREO") sales of $26.2 million, which contributed to a 14.4 percent decline in OREO and a 9.4 percent reduction in total non-performing assets ("NPAs").
• A decrease of $79.6 million, or 12.5%, in substandard classified loans.
• Reduction in net charge-offs to $11.9 million, which included recoveries of $10.0 million of previously charged off loans.
• Generated mortgage production of $444.1 million, which contributed to mortgage lending revenue of $14.9 million, excluding the MSR valuation adjustment.
• Maintained a stable net interest margin at 3.65 percent.
• Announced the acquisition of the assets of The Securance Group, Inc., which will allow us to expand our insurance offerings into new markets within the Alabama portion of our footprint.

"We are pleased to report results that reflect another successful quarter in terms of improving profitability and asset quality," remarked Aubrey Patterson, Chairman and Chief Executive Officer of BancorpSouth.  "Earnings for the quarter reflect continued decreases in credit costs as non-performing loans ("NPLs"), classified asset totals, and other credit quality metrics, including recoveries of previously charged off loans, continue to improve.  In addition, we were pleased with the results of disposition efforts related to our other real estate owned, which resulted in a significant decline in the balance of these properties during the quarter." 

The Company reported net income of $20.6 million, or $0.22 per diluted share, for the second quarter of 2012 compared with net income of $12.8 million, or $0.15 per diluted share, for the second quarter of 2011 and net income of $22.9 million, or $0.25 per diluted share, for the first quarter of 2012.  The Company reported net income for the first six months of 2012 of $43.5 million, or $0.47 per diluted share, compared with $12.3 million, or $0.15 per diluted share, for the first half of 2011.     

Earnings for the quarter benefited from a reduction in the provision for credit losses to $6.0 million compared to $32.2 million for the second quarter of 2011 and $10.0 million for the first quarter of 2012.  NPLs declined $18.3 million, or 6.4 percent, during the second quarter of 2012 to $266.9 million compared with $285.2 million at March 31, 2012 and declined $112.9 million, or 29.7 percent, from $379.8 million at June 30, 2011.  In addition, gross nonaccrual loan formation was $41.1 million for the second quarter of 2012 compared to $50.4 million for the second quarter of 2011 and $40.4 million for the first quarter of 2012.  Total loans 30 to 89 days past due decreased during the second quarter of 2012 to $28.6 million at June 30, 2012 from $29.0 million at March 31, 2012.  Net charge-offs decreased $11.4 million, or 48.9 percent, to $11.9 million for the second quarter of 2012 compared with $23.3 million for the first quarter of 2012.  Net charge-offs during the second quarter of 2012 included $8.4 million of charge-offs of loans which had been identified and reported as impaired and were reserved for in previous quarters. 

Patterson added, "Our noninterest revenue lines of business produced another solid quarter and continue to contribute almost 40 percent of our total revenues.  Our mortgage business generated $444.1 million of production during the quarter and contributed $14.9 million of revenue, excluding a negative MSR valuation adjustment of $3.8 million.  Insurance commissions accounted for $23.0 million of noninterest revenue, consistent with both the second quarter of 2011 and the first quarter of 2012." 

Net Interest Revenue

Net interest revenue was $104.7 million for the second quarter of 2012, a decrease of 4.7 percent from $109.9 million for the second quarter of 2011 and a decrease of 0.8 percent from $105.6 million for the first quarter of 2012.  The fully taxable equivalent net interest margin was 3.65 percent for the second quarter of 2012 compared with 3.71 percent for the second quarter of 2011 and 3.66 percent for the first quarter of 2012. 

Asset, Deposit and Loan Activity

Total assets were $13.1 billion at June 30, 2012 compared with $13.4 billion at June 30, 2011.  Total deposits were $11.0 billion at June 30, 2012, a decrease of 3.1 percent from $11.3 billion at June 30, 2011.  Loans and leases, net of unearned income, were $8.7 billion at June 30, 2012, a decrease of 5.2 percent from $9.2 billion at June 30, 2011.

The construction, acquisition, and development ("CAD") loan portfolio, which decreased $225.7 million, or 21.3 percent, from June 30, 2011 to June 30, 2012, accounted for almost half of the decline in net loans and leases over the same time period. Despite the year-over-year decreases, loans and leases, net of unearned income, were flat compared to $8.7 billion at March 31, 2012.  Patterson added, "We were pleased with loan production efforts during the quarter as we were able to replace strategic runoff of non-performing and certain criticized credits as well as all other normal runoff with new loans.  We were particularly pleased with production in our commercial and industrial portfolio, which yielded an increase of almost $56 million in total outstanding loans in this category during the quarter."

Time deposits, which decreased $548.5 million, or 16.5 percent at June 30, 2012 compared to June 30, 2011, were offset partially by significant growth in noninterest bearing demand deposits, which increased $215.4 million, or 10.3 percent, over the period.  Additionally, savings deposits increased $138.3 million, or 14.6 percent, while interest bearing demand deposits decreased $157.3 million, or 3.2 percent, over the same period.  As of June 30, 2012, approximately $1.1 billion of time deposits were scheduled to mature during the following two quarters at a weighted average rate of 0.89 percent.   

Provision for Credit Losses and Allowance for Credit Losses

For the second quarter of 2012, the provision for credit losses was $6.0 million, compared with $32.2 million for the second quarter of 2011 and $10.0 million for the first quarter of 2012.  Net charge-offs for the second quarter of 2012 were $11.9 million, compared with $32.9 million for the second quarter of 2011 and $23.3 million for the first quarter of 2012.  Recoveries increased to $10.0 million for the second quarter of 2012, compared with $3.3 million for the second quarter of 2011 and $5.5 million for the first quarter of 2012.  Annualized net charge-offs were 0.55 percent of average loans and leases for the second quarter of 2012, compared with 1.42 percent for the second quarter of 2011 and 1.06 percent for the first quarter of 2012.  

NPLs were $266.9 million, or 3.06 percent of net loans and leases, at June 30, 2012 compared with $379.8 million, or 4.12 percent of net loans and leases, at June 30, 2011 and $285.2 million, or 3.26 percent of net loans and leases, at March 31, 2012.  The allowance for credit losses was $175.8 million, or 2.01 percent of net loans and leases, at June 30, 2012 compared with $197.6 million, or 2.14 percent of net loans and leases, at June 30, 2011 and $181.8 million, or 2.08 percent of net loans and leases, at March 31, 2012. 

NPLs at June 30, 2012 consisted primarily of $240.2 million of nonaccrual loans, compared with $253.2 million of nonaccrual loans at March 31, 2012.  Included in the reduction of nonaccrual loans during the second quarter of 2012 were payments received on nonaccrual loans of $27.1 million, compared with payments received on such loans of $20.6 million during the first quarter of 2012.  NPLs at June 30, 2012 also included $1.6 million of loans 90 days or more past due and still accruing, compared with $1.7 million at March 31, 2012, and included restructured loans still accruing of $25.1 million at June 30, 2012, compared with $30.3 million at March 31, 2012.  Loans and leases 30 to 89 days past due were $28.6 million at June 30, 2012 compared with $29.0 million at March 31, 2012.

At June 30, 2012, $66.4 million of NPLs were residential CAD loans, $43.8 million were other CAD loans, $52.0 million were commercial real estate loans and $39.4 million were consumer mortgages.  NPLs from all other loan types totaled $65.3 million at June 30, 2012.  Included in nonaccrual loans at June 30, 2012 were $132.7 million of loans, or 55.2 percent of total nonaccrual loans, that were paying as agreed, compared with $137.5 million, or 54.3 percent, at the end of the first quarter of 2012.  These loans were generally placed on nonaccrual status because the collateral values were less than the outstanding balances, and because of uncertainty as to whether the borrowers possessed adequate liquidity or will be able to generate sufficient cash flow to satisfy the debt given the short-fall in collateral values.  Such loans are generally deemed to be impaired, with a specific reserve established for the difference in the balance owed and the disposition value of the collateral.

At the end of the second quarter, 83.4 percent of nonaccrual loans were determined to be collateral dependent, and after write-downs and specific reserves, the remaining book balance of these loans was 67.9 percent of the unpaid principal balance.  At June 30, 2012, coverage of unimpaired nonaccrual loans by the nonspecified allowance for credit losses was 381 percent and coverage of unimpaired NPLs by the nonspecified allowance for credit losses was 228 percent. 

OREO decreased $24.2 million to $143.6 million during the second quarter of 2012 from $167.8 million at March 31, 2012.  This net decrease reflected $6.9 million added through foreclosure, offset by sales of other real estate owned of $26.2 million.  OREO sales were $11.8 million for the first quarter of 2012.  Write-downs in the value of existing properties were $4.9 million for the second quarter of 2012 compared to $5.0 million for the first quarter of 2012.  Sales of OREO during the second quarter of 2012 resulted in a net loss of $2.7 million compared to a net loss of $0.8 million for the first quarter of 2012.  At June 30, 2012, OREO was carried at 51.0 percent of the aggregate loan balances at the time of foreclosure, compared with 52.4 percent at March 31, 2012.

Noninterest Revenue

Noninterest revenue was $66.5 million for the second quarter of 2012, compared with $75.1 million for the second quarter of 2011 and $72.4 million for the first quarter of 2012.  These results included negative MSR valuation adjustments of $3.8 million for both the second quarters of 2012 and 2011 and a positive MSR valuation adjustment of $3.7 million for the first quarter of 2012.  Additionally, noninterest revenue for the second quarter of 2011 included $10.0 million of net securities gains, while net securities gains for the first two quarters of 2012 were not material.    

Excluding the MSR valuation adjustments, net mortgage lending revenue was $14.9 million for the second quarter of 2012, compared with $5.8 million for the second quarter of 2011 and $11.4 million for the first quarter of 2012.  Mortgage origination volume for the second quarter of 2012 was $444.1 million, compared with $245.3 million for the second quarter of 2011 and $395.1 million for the first quarter of 2012.

Credit and debit card fee revenue was $7.8 million for the second quarter of 2012, compared with $11.3 million for the second quarter of 2011 and $7.5 million for the first quarter of 2012.  Service charge revenue was $13.7 million for the second quarter of 2012, compared with $16.6 million for the second quarter of 2011 and $15.1 million for the first quarter of 2012.  Insurance commission revenue was $23.0 million for the second quarter of 2012, compared with $22.9 million for the second quarter of 2011 and $23.2 million for the first quarter of 2012. 

Noninterest Expense

Noninterest expense for the second quarter of 2012 was $136.5 million, compared with $137.1 million for the second quarter of 2011 and $135.7 million for the first quarter of 2012.  Results for the second quarter of 2011 included a one-time prepayment penalty of $9.8 million related to the early repayment of $75.0 million of Federal Home Loan Bank advances.  Salaries and employee benefits expense increased to $77.7 million for the second quarter of 2012 from $70.1 million for the second quarter of 2011 and $74.9 million for the first quarter of 2012.    Foreclosed property expense increased to $10.2 million for the second quarter of 2012 from $3.8 million for the second quarter of 2011 and $8.4 million for the first quarter of 2012.  Deposit insurance assessments declined to $4.0 million for the second quarter of 2012 from $6.4 million for the second quarter of 2011 and $5.4 million for the first quarter of 2012.

Capital Management

BancorpSouth (BXS) remains a "well capitalized" financial holding company, as defined by federal regulations, with Tier 1 risk-based capital of 13.41 percent at June 30, 2012 and total risk based capital of 14.66 percent, compared with required minimum levels of 6 percent and 10 percent, respectively, for "well capitalized" classification.  The Company's equity capitalization is 100 percent common stock.  BancorpSouth's ratio of shareholders' equity to assets increased to 10.79 percent at June 30, 2012, compared with 9.33 percent at June 30, 2011 and 10.46 percent at March 31, 2012.  The ratio of tangible shareholders' equity to tangible assets increased to 8.80 percent at June 30, 2012, compared with 7.32 percent at June 30, 2011 and 8.49 percent at March 31, 2012.

Summary

Patterson concluded, "Our second quarter results reflect meaningful profitability improvement, achieved through consistent and successful efforts to improve asset quality as well as continued strong performance from our noninterest lines of business.  We are pleased with progress made in many of our credit quality metrics, but our OREO disposition results are particularly encouraging.  Total OREO dispositions for the quarter represent the highest level achieved during this credit cycle and are reflective of the success of our disposition efforts.

"Our noninterest lines of business continue to contribute a very significant portion of our total revenues and have become increasingly important given margin pressures and subdued loan demand.  The Company has demonstrated a commitment to continue to grow these lines of business, particularly insurance and mortgage, both organically and through strategic acquisitions.  The recently announced acquisition of the assets of The Securance Group further demonstrates this commitment and will allow us to expand our insurance offerings into new markets and continue to grow revenue.  We believe that BancorpSouth is well positioned to achieve long-term growth and continue to increase shareholder value."

Conference Call

BancorpSouth will conduct a conference call to discuss its second quarter 2012 results on July 24, 2012, at 10:00 a.m. (Central Time).  Investors may listen via the Internet by accessing BancorpSouth's website at http://www.bancorpsouth.com.  A replay of the conference call will be available at BancorpSouth's website for at least two weeks following the call.

Forward-Looking Statements

Certain statements contained in this news release may not be based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "may," "might," "will," "would," "could" or "intend."  These forward-looking statements include, without limitation, statements relating to the impact of the acquisition of the assets of The Securance Group, Inc. on our market presence, our ability to achieve long-term growth and increased shareholder value, and our use of non-GAAP financial measures.

We caution you not to place undue reliance on the forward-looking statements contained in this news release in that actual results could differ materially from those indicated in such forward-looking statements because of a variety of factors.  These factors may include, but are not limited to, conditions in the financial markets and economic conditions generally, the ongoing debt crisis and the downgrade of the sovereign credit ratings for various nations, the adequacy of the Company's provision and allowance for credit losses to cover actual credit losses, the credit risk associated with real estate construction, acquisition and development loans, losses resulting from the significant amount of the Company's other real estate owned, limitations on the Company's ability to declare and pay dividends, the impact of legal or administrative proceedings, the availability of capital on favorable terms if and when needed, liquidity risk, governmental regulation, including the Dodd Frank Act, supervision of the Company's operations, the impact of regulations on service charges on the Company's core deposit accounts, the susceptibility of the Company's business to local economic conditions, the soundness of other financial institutions, changes in interest rates, the impact of monetary policies and economic factors on the Company's ability to attract deposits or make loans, volatility in capital and credit markets, reputational risk, the impact of hurricanes or other adverse weather events, any requirement that the Company write down goodwill or other intangible assets, diversification in the types of financial services the Company offers, competition with other financial services companies, risks in connection with completed or potential acquisitions, the Company's growth strategy, interruptions or breaches in the Company's information system security, the failure of certain third party vendors to perform, dilution caused by the Company's issuance of any additional shares of its common stock to raise capital or acquire other banks, bank holding companies, financial holding companies and insurance agencies, the effectiveness of the Company's internal controls, other factors generally understood to affect the financial results of financial services companies and other factors detailed from time to time in the Company's press releases and filings with the Securities and Exchange Commission. 

BancorpSouth, Inc. is a financial holding company headquartered in Tupelo, Mississippi, with $13.1 billion in assets.  BancorpSouth Bank, a wholly-owned subsidiary of BancorpSouth, Inc., operates 293 commercial banking, mortgage, insurance, trust and broker/dealer locations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri and Tennessee, including an insurance location in Illinois.

 

BancorpSouth, Inc.
Selected Financial Data
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
(Dollars in thousands, except per share amounts)
Earnings Summary:
Net interest revenue	$     104,741		$       109,912		$      210,351		$       219,349
Provision for credit losses	6,000		32,240		16,000		85,719
Noninterest revenue	66,468		75,144		138,828		143,455
Noninterest expense	136,506		137,069		272,186		267,079
Income before income taxes	28,703		15,747		60,993		10,006
Income tax provision (benefit)	8,079		2,921		17,503		(2,326)
Net income	$       20,624		$         12,826		$        43,490		$        12,332
Earnings per share:  Basic	$           0.22		$             0.15		$            0.47		$            0.15
Diluted	$           0.22		$             0.15		$            0.47		$             0.15
Balance sheet data at June 30:
Total assets					$ 13,147,818		$  13,367,050
Total earning assets					11,906,818		12,150,240
Loans and leases, net of unearned income					8,732,395		9,214,553
Allowance for credit losses					175,847		197,627
Total deposits					10,956,337		11,308,463
Common shareholders' equity					1,418,311		1,246,703
Book value per share					15.02		14.93
Average balance sheet data:
Total assets	$13,018,231		$  13,365,560		$ 13,053,294		$  13,452,183
Total earning assets	11,908,423		12,227,751		11,936,572		12,310,799
Loans and leases, net of unearned interest	8,735,225		9,249,127		8,763,383		9,274,415
Total deposits	10,908,919		11,355,871		10,976,435		11,426,363
Common shareholders' equity	1,403,733		1,222,281		1,383,721		1,220,851
Non-performing assets at June 30:
Non-accrual loans and leases					$      240,246		$       331,076
Loans and leases 90+ days past due, still accruing					1,632		3,980
Restructured loans and leases, still accruing					25,071		44,786
Other real estate owned					143,615		151,204
Total non-performing assets					410,564		531,046
Net charge-offs as a percentage
of average loans (annualized)	0.55%		1.42%		0.80%		1.83%
Performance ratios (annualized):
Return on average assets	0.64%		0.38%		0.67%		0.18%
Return on common equity	5.91%		4.21%		6.32%		2.04%
Total shareholders' equity to total assets					10.79%		9.33%
Tangible shareholders' equity to tangible assets					8.80%		7.32%
Net interest margin	3.65%		3.71%		3.65%		3.70%
Average shares outstanding - basic	94,436,277		83,453,580		93,081,900		83,451,257
Average shares outstanding - diluted	94,541,381		83,513,889		93,155,622		83,510,598
Cash dividends per share	$0.01		$0.01		$0.02		$0.12
Tier I capital	13.41%	(1)	10.82%		13.41%	(1)	10.82%
Total capital	14.66%	(1)	12.08%		14.66%	(1)	12.08%
Tier I leverage capital	10.07%	(1)	8.22%		10.07%	(1)	8.22%
(1)  Estimated as of earnings release date

 

BancorpSouth, Inc.
Consolidated Balance Sheets
(Unaudited)
	Jun-12	Mar-12	Dec-11	Sep-11	Jun-11
	(Dollars in thousands)
Assets
Cash and due from banks	$               224,084	$              184,441	$             195,681	$            161,876	$              166,761
Interest bearing deposits with other banks	603,458	665,675	303,663	338,250	304,344
Available-for-sale securities, at fair value	2,462,831	2,573,535	2,513,518	2,481,555	2,560,824
Loans and leases	8,771,642	8,777,538	8,911,258	9,096,928	9,255,879
Less:  Unearned income	39,247	39,615	40,947	41,023	41,326
Allowance for credit losses	175,847	181,777	195,118	199,686	197,627
Net loans and leases	8,556,548	8,556,146	8,675,193	8,856,219	9,016,926
Loans held for sale	108,134	110,294	83,458	100,687	70,519
Premises and equipment, net	320,419	321,720	323,383	323,285	328,075
Accrued interest receivable	47,358	50,008	51,266	53,338	55,525
Goodwill	271,297	271,297	271,297	271,297	271,297
Bank owned life insurance	202,620	202,698	200,085	197,945	197,028
Other real estate owned	143,615	167,808	173,805	162,686	151,204
Other assets	207,454	203,950	204,502	251,380	244,547
Total Assets	$          13,147,818	$         13,307,572	$        12,995,851	$        13,198,518	$          13,367,050
Liabilities
Deposits:
Demand:  Noninterest bearing	$            2,312,044	$           2,260,012	$           2,269,799	$          2,198,535	$            2,096,655
Interest bearing	4,782,243	4,897,585	4,706,825	4,736,858	4,939,553
Savings	1,083,255	1,067,256	991,702	968,277	944,993
Other time	2,778,795	2,857,469	2,986,863	3,159,563	3,327,262
Total deposits	10,956,337	11,082,322	10,955,189	11,063,233	11,308,463
Federal funds purchased and
securities sold under agreement
to repurchase	361,990	401,089	373,933	449,501	426,097
Short-term Federal Home Loan Bank borrowings
and other short-term borrowing	1,500	1,500	1,500	1,500	703
Accrued interest payable	7,161	7,652	8,644	10,017	11,348
Junior subordinated debt securities	160,312	160,312	160,312	160,312	160,312
Long-term Federal Home Loan Bank borrowings	33,500	33,500	33,500	33,500	35,000
Other liabilities	208,707	228,998	199,861	213,702	178,424
Total Liabilities	11,729,507	11,915,373	11,732,939	11,931,765	12,120,347
Shareholders' Equity
Common stock	236,091	236,090	208,709	208,722	208,722
Capital surplus	310,388	309,426	227,567	227,006	226,362
Accumulated other comprehensive income (loss)	1,334	(4,136)	(2,261)	14,595	6,289
Retained earnings	870,498	850,819	828,897	816,430	805,330
Total Shareholders' Equity	1,418,311	1,392,199	1,262,912	1,266,753	1,246,703
Total Liabilities & Shareholders' Equity	$          13,147,818	$         13,307,572	$         12,995,851	$        13,198,518	$          13,367,050

 

BancorpSouth, Inc.
Consolidated Average Balance Sheets
(Unaudited)
	Jun-12	Mar-12	Dec-11	Sep-11	Jun-11
	(Dollars in thousands)
Assets
Cash and due from banks	$           152,907	$            160,827	$           151,004	$              148,409	$              151,194
Interest bearing deposits with other banks	574,624	603,714	384,231	309,146	187,901
Held-to-maturity securities, at amortized cost	-	-	-	-	1,097,562
Available-for-sale securities, at fair value	2,520,932	2,507,941	2,509,943	2,529,482	1,609,720
Federal funds sold and securities
purchased under agreement to resell	-	274	2,174	-	38,736
Loans and leases	8,774,767	8,832,104	8,995,035	9,179,730	9,291,434
Less:  Unearned income	39,542	40,562	40,806	41,316	42,307
Allowance for credit losses	185,209	202,158	208,005	205,209	212,968
Net loans and leases	8,550,016	8,589,384	8,746,224	8,933,205	9,036,159
Loans held for sale	77,642	61,250	67,781	62,025	44,704
Premises and equipment, net	320,731	322,641	322,544	326,800	328,829
Accrued interest receivable	45,494	47,512	49,256	53,122	54,570
Goodwill	271,297	271,297	271,297	271,297	271,297
Bank owned life insurance	12,679	11,204	14,558	14,642	14,189
Other real estate owned	155,471	170,924	164,841	152,052	138,827
Other assets	336,438	341,390	362,926	374,475	391,872
Total Assets	$       13,018,231	$        13,088,358	$       13,046,779	$          13,174,655	$          13,365,560
Liabilities
Deposits:
Demand:  Noninterest bearing	$         2,248,914	$          2,139,371	$         2,248,904	$            2,147,707	$            2,018,197
Interest bearing	4,769,340	4,960,060	4,714,059	4,789,462	4,977,764
Savings	1,074,912	1,027,611	975,892	957,871	941,169
Other time	2,815,753	2,916,910	3,078,376	3,246,332	3,418,741
Total deposits	10,908,919	11,043,952	11,017,231	11,141,372	11,355,871
Federal funds purchased and
securities sold under agreement
to repurchase	374,982	358,124	430,968	457,640	423,949
Short-term Federal Home Loan Bank borrowings
and other short-term borrowing	1,500	1,500	1,500	486	1,641
Accrued interest payable	8,605	9,392	10,617	12,108	13,558
Junior subordinated debt securities	160,312	160,312	160,312	160,312	160,312
Long-term Federal Home Loan Bank borrowings	33,500	33,500	33,500	34,984	89,395
Other liabilities	126,680	117,869	123,746	115,938	98,553
Total Liabilities	11,614,498	11,724,649	11,777,874	11,922,840	12,143,279
Shareholders' Equity
Common stock	236,091	231,276	208,722	208,722	208,715
Capital surplus	309,634	294,973	227,201	226,582	225,912
Accumulated other comprehensive income (loss)	(4,020)	(2,269)	8,927	6,379	(10,040)
Retained earnings	862,028	839,729	824,055	810,132	797,694
Total Shareholders' Equity	1,403,733	1,363,709	1,268,905	1,251,815	1,222,281
Total Liabilities & Shareholders' Equity	$       13,018,231	$        13,088,358	$       13,046,779	$          13,174,655	$          13,365,560

 

BancorpSouth, Inc.
Consolidated Condensed Statements of Income
(Dollars in thousands, except per share data)
(Unaudited)
	Quarter Ended										Year To Date
	Jun-12		Mar-12		Dec-11		Sep-11		Jun-11		Jun-12		Jun-11
INTEREST REVENUE:
Loans and leases	$107,737		$109,012		$  112,566		$114,260		$116,892		$216,749		$234,250
Deposits with other banks	382		401		252		203		124		783		246
Federal funds sold and securities purchased
under agreement to resell	1		-		1		-		35		1		166
Held-to-maturity securities:
Taxable	-		-		-		-		5,066		-		13,080
Tax-exempt	-		-		-		-		2,291		-		5,638
Available-for-sale securities:
Taxable	10,188		11,162		11,781		13,172		10,451		21,350		19,036
Tax-exempt	4,210		4,256		4,158		4,130		1,871		8,466		2,695
Loans held for sale	686		544		635		632		505		1,230		952
Total interest revenue	123,204		125,375		129,393		132,397		137,235		248,579		276,063
INTEREST EXPENSE:
Interest bearing demand	4,185		4,449		4,737		5,324		6,039		8,634		12,585
Savings	691		714		747		828		810		1,405		1,636
Other time	10,275		11,291		13,104		14,837		16,285		21,566		33,768
Federal funds purchased and securities sold
under agreement to repurchase	66		63		76		95		135		129		287
FHLB borrowings	366		367		367		375		1,194		733		2,717
Junior subordinated debt	2,879		2,879		2,871		2,861		2,860		5,758		5,719
Other	1		2		2		2		-		3		2
Total interest expense	18,463		19,765		21,904		24,322		27,323		38,228		56,714
Net interest revenue	104,741		105,610		107,489		108,075		109,912		210,351		219,349
Provision for credit losses	6,000		10,000		19,250		25,112		32,240		16,000		85,719
Net interest revenue, after provision for
credit losses	98,741		95,610		88,239		82,963		77,672		194,351		133,630
NONINTEREST REVENUE:
Mortgage lending	11,040		15,142		8,928		(1,443)		2,003		26,182		9,584
Credit card, debit card and merchant fees	7,787		7,523		7,783		12,981		11,263		15,310		21,609
Service charges	13,697		15,116		17,412		17,334		16,556		28,813		31,924
Trust income	3,139		2,282		3,348		2,854		2,850		5,421		5,984
Security gains, net	177		74		18		2,047		10,045		251		10,062
Insurance commissions	22,964		23,153		19,416		22,012		22,941		46,117		45,490
Other	7,664		9,070		8,430		6,270		9,486		16,734		18,802
Total noninterest revenue	66,468		72,360		65,335		62,055		75,144		138,828		143,455
NONINTEREST EXPENSE:
Salaries and employee benefits	77,661		74,931		70,512		71,851		70,142		152,592		140,517
Occupancy, net of rental income	10,487		10,066		10,315		11,144		10,232		20,553		20,903
Equipment	5,124		5,333		5,108		5,346		5,595		10,457		11,253
Deposit insurance assessments	3,994		5,383		5,674		3,781		6,436		9,377		11,861
Prepayment penalty on FHLB borrowings	-		-		-		-		9,778		-		9,778
Other	39,240		39,967		44,247		38,576		34,886		79,207		72,767
Total noninterest expenses	136,506		135,680		135,856		130,698		137,069		272,186		267,079
Income before income taxes	28,703		32,290		17,718		14,320		15,747		60,993		10,006
Income tax expense (benefit)	8,079		9,424		4,415		2,386		2,921		17,503		(2,326)
Net income	$   20,624		$  22,866		$    13,303		$  11,934		$  12,826		$  43,490		$ 12,332
Net income per share: Basic	$       0.22		$      0.25		$        0.16		$      0.14		$      0.15		$      0.47		$     0.15
Diluted	$       0.22		$      0.25		$        0.16		$      0.14		$      0.15		$      0.47		$     0.15

 

BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
	Quarter Ended
	Jun-12		Mar-12		Dec-11		Sep-11		Jun-11
LOAN AND LEASE PORTFOLIO:
Commercial and industrial	$1,497,678		$1,441,727		$1,473,728		$1,503,391		$1,526,686
Real estate
Consumer mortgages	1,904,420		1,937,997		1,945,190		1,966,124		1,971,499
Home equity	496,245		501,331		514,362		523,030		531,787
Agricultural	251,975		256,683		239,487		249,715		255,310
Commercial and industrial-owner occupied	1,288,887		1,287,542		1,301,575		1,329,644		1,366,734
Construction, acquisition and development	835,022		858,110		908,362		976,694		1,060,675
Commercial real estate	1,748,748		1,742,001		1,754,022		1,772,003		1,764,648
Credit cards	101,085		100,527		106,281		103,232		101,955
All other	608,335		612,005		627,304		632,072		635,259
Total loans	$8,732,395		$8,737,923		$8,870,311		$9,055,905		$9,214,553
ALLOWANCE FOR CREDIT LOSSES:
Balance, beginning of period	$   181,777		$   195,118		$   199,686		$   197,627		$   198,333
Loans and leases charged off:
Commercial and industrial	(1,582)		(4,272)		(1,677)		(1,295)		(5,556)
Real estate
Consumer mortgages	(2,818)		(4,216)		(2,953)		(2,344)		(1,629)
Home equity	(536)		(851)		(1,667)		(1,712)		(1,391)
Agricultural	(386)		(96)		(110)		(2,345)		(373)
Commercial and industrial-owner occupied	(2,732)		(3,868)		(1,136)		(4,222)		(3,228)
Construction, acquisition and development	(9,560)		(11,394)		(10,539)		(7,697)		(16,783)
Commercial real estate	(3,260)		(2,809)		(6,858)		(4,467)		(1,597)
Credit cards	(588)		(562)		(706)		(760)		(725)
All other	(438)		(758)		(794)		(770)		(4,971)
Total loans charged off	(21,900)		(28,826)		(26,440)		(25,612)		(36,253)
Recoveries:
Commercial and industrial	1,040		1,542		446		348		589
Real estate
Consumer mortgages	438		323		263		485		220
Home equity	78		315		43		51		46
Agricultural	53		10		76		-		45
Commercial and industrial-owner occupied	1,514		351		100		99		21
Construction, acquisition and development	1,955		2,155		971		923		1,493
Commercial real estate	4,504		383		340		300		392
Credit cards	121		118		168		141		239
All other	267		288		215		212		262
Total recoveries	9,970		5,485		2,622		2,559		3,307
Net charge-offs	(11,930)		(23,341)		(23,818)		(23,053)		(32,946)
Provision charged to operating expense	6,000		10,000		19,250		25,112		32,240
Balance, end of period	$   175,847		$   181,777		$   195,118		$   199,686		$   197,627
Average loans for period	$8,735,225		$8,791,542		$8,954,229		$9,138,414		$9,249,127
Ratio:
Net charge-offs to average loans (annualized)	0.55%		1.06%		1.06%		1.01%		1.42%

 

BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
	Quarter Ended
	Jun-12		Mar-12		Dec-11		Sep-11		Jun-11
NON-PERFORMING ASSETS
NON-PERFORMING LOANS AND LEASES:
Nonaccrual Loans and Leases
Commercial and industrial	$  13,156		$    11,025		$    12,260		$  11,122		$        9,337
Real estate
Consumer mortgages	35,660		46,562		47,878		44,100		34,174
Home equity	2,995		2,687		2,036		2,634		1,232
Agricultural	8,390		4,254		4,179		6,254		8,526
Commercial and industrial-owner occupied	26,957		32,842		33,112		26,977		26,387
Construction, acquisition and development	104,283		115,649		133,110		171,566		200,434
Commercial real estate	44,359		35,715		40,616		49,500		48,571
Credit cards	364		509		594		551		546
All other	4,082		3,984		3,013		1,775		1,869
Total nonaccrual loans and leases	$240,246		$  253,227		$  276,798		$314,479		$    331,076
Loans and Leases 90+ Days Past Due, Still Accruing:
Commercial and industrial	$           -		$            10		$            12		$    1,846		$           118
Real estate
Consumer mortgages	1,141		1,314		2,974		4,136		2,482
Home equity	-		-		-		134		242
Agricultural	-		-		-		131		-
Commercial and industrial-owner occupied	-		-		-		42		-
Construction, acquisition and development	-		-		-		290		432
Commercial real estate	-		-		-		106		19
Credit cards	324		228		299		257		299
All other	167		146		149		412		388
Total loans and leases 90+ days past due, still accruing	1,632		1,698		3,434		7,354		3,980
Restructured Loans and Leases, Still Accruing	25,071		30,311		42,018		40,966		44,786
Total non-performing loans and leases	266,949		285,236		322,250		362,799		379,842
OTHER REAL ESTATE OWNED:	143,615		167,808		173,805		162,686		151,204
Total Non-performing Assets	$ 410,564		$   453,044		$   496,055		$525,485		$    531,046
Additions to Nonaccrual Loans and Leases During the Quarter	$  41,121		$     40,392		$     39,474		$  60,799		$      50,427
Loans and Leases 30-89 Days Past Due, Still Accruing:
Commercial and industrial	$    3,040		$       4,809		$       8,065		$    9,759		$        7,903
Real estate
Consumer mortgages	14,436		10,736		15,864		20,144		18,621
Home equity	1,311		2,248		2,037		2,066		2,916
Agricultural	471		663		339		1,485		2,901
Commercial and industrial-owner occupied	2,745		3,332		2,154		7,348		2,786
Construction, acquisition and development	2,062		2,431		2,714		4,469		4,939
Commercial real estate	1,288		2,104		3,292		5,136		4,091
Credit cards	673		686		802		851		785
All other	2,544		1,983		2,280		2,832		3,005
Total Loans and Leases 30-89 days past due, still accruing	$  28,570		$     28,992		$     37,547		$  54,090		$      47,947
Credit Quality Ratios:
Provision for credit losses to average loans and leases (annualized)	0.27%		0.45%		0.86%		1.10%		1.39%
Allowance for credit losses to net loans and leases	2.01%		2.08%		2.20%		2.21%		2.14%
Allowance for credit losses to non-performing assets	42.83%		40.12%		39.33%		38.00%		37.21%
Allowance for credit losses to non-performing loans and leases	65.87%		63.73%		60.55%		55.04%		52.03%
Non-performing loans and leases to net loans and leases	3.06%		3.26%		3.63%		4.01%		4.12%
Non-performing assets to net loans and leases	4.70%		5.18%		5.59%		5.80%		5.76%

 

BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
	Quarter Ended
	Jun-12		Mar-12		Dec-11		Sep-11		Jun-11
REAL ESTATE CONSTRUCTION, ACQUISITION
AND DEVELOPMENT ("CAD") PORTFOLIO:
Outstanding Balance
Multi-family construction	$    2,378		$      4,683		$        2,138		$  10,349		$    19,116
One-to-four family construction	182,648		159,281		169,827		181,445		198,809
Recreation and all other loans	66,033		63,407		67,235		61,084		66,366
Commercial construction	112,929		122,173		130,124		140,570		160,834
Commercial acquisition and development	182,570		191,783		197,044		206,516		222,460
Residential acquisition and development	288,464		316,783		341,994		376,730		393,090
Total outstanding balance	$835,022		$  858,110		$     908,362		$976,694		$1,060,675
Nonaccrual CAD Loans
Multi-family construction	$           -		$              -		$        1,067		$           -		$       9,174
One-to-four family construction	15,490		11,953		14,690		17,937		24,537
Recreation and all other loans	380		386		436		712		774
Commercial construction	4,318		3,702		5,235		10,159		16,618
Commercial acquisition and development	21,741		23,464		23,968		31,862		37,207
Residential acquisition and development	62,354		76,144		87,714		110,896		112,124
Total nonaccrual CAD loans	104,283		115,649		133,110		171,566		200,434
CAD Loans 90+ Days Past Due, Still Accruing:
Multi-family construction	-		-		-		-		-
One-to-four family construction	-		-		-		211		-
Recreation and all other loans	-		-		-		-		2
Commercial construction	-		-		-		-		-
Commercial acquisition and development	-		-		-		-		-
Residential acquisition and development	-		-		-		79		430
Total CAD loans 90+ days past due, still accruing	-		-		-		290		432
Restructured CAD Loans, Still Accruing
Multi-family construction	-		-		-		-		-
One-to-four family construction	793		799		318		321		1,697
Recreation and all other loans	842		847		852		24		24
Commercial construction	-		977		-		-		-
Commercial acquisition and development	260		2,975		433		1,415		1,415
Residential acquisition and development	4,048		106		446		410		2,274
Total restructured CAD loans, still accruing	5,943		5,704		2,049		2,170		5,410
Total Non-performing CAD loans	$110,226		$  121,353		$    135,159		$174,026		$   206,276
CAD NPL as a % of Outstanding CAD Balance
Multi-family construction	-		-		49.9%		-		48.0%
One-to-four family construction	8.9%		8.0%		8.8%		10.2%		13.2%
Recreation and all other loans	1.9%		1.9%		1.9%		1.2%		1.2%
Commercial construction	3.8%		3.8%		4.0%		7.2%		10.3%
Commercial acquisition and development	12.1%		13.8%		12.4%		16.1%		17.4%
Residential acquisition and development	23.0%		24.1%		25.8%		29.6%		29.2%
Total CAD NPL as a % of outstanding CAD balance	13.2%		14.1%		14.9%		17.8%		19.4%

 

BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
	June 30, 2012
			Special
	Pass		Mention		Substandard		Doubtful		Loss		Impaired		Total
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial	$1,426,787		$      12,480		$       46,512		$     959		$          34		$ 10,906		$1,497,678
Real estate
Consumer mortgages	1,720,260		29,254		132,775		4,748		302		17,081		1,904,420
Home equity	472,291		3,476		17,759		908		243		1,568		496,245
Agricultural	225,886		2,989		15,687		20		-		7,393		251,975
Commercial and industrial-owner occupied	1,158,082		25,740		83,048		276		28		21,713		1,288,887
Construction, acquisition and development	607,942		26,947		99,471		589		20		100,053		835,022
Commercial real estate	1,515,262		48,217		144,301		71		199		40,698		1,748,748
Credit cards	101,085		-		-		-		-		-		101,085
All other	572,073		18,060		16,425		803		9		965		608,335
Total loans	$7,799,668		$    167,163		$     555,978		$  8,374		$        835		$200,377		$8,732,395
	March 31, 2012
			Special
	Pass		Mention		Substandard		Doubtful		Loss		Impaired		Total
LOAN PORTFOLIO BY INTERNALLY ASSIGNED GRADE:
Commercial and industrial	$1,376,983		$        6,449		$       47,783		$  4,159		$        247		$    6,106		$1,441,727
Real estate
Consumer mortgages	1,729,187		23,918		151,679		4,351		446		28,416		1,937,997
Home equity	476,300		2,793		19,626		754		275		1,583		501,331
Agricultural	229,865		1,936		21,763		20		-		3,099		256,683
Commercial and industrial-owner occupied	1,151,368		24,662		83,041		230		89		28,152		1,287,542
Construction, acquisition and development	601,396		22,939		121,556		956		-		111,263		858,110
Commercial real estate	1,491,021		47,535		171,891		72		-		31,482		1,742,001
Credit cards	100,527		-		-		-		-		-		100,527
All other	575,399		16,685		18,222		678		10		1,011		612,005
Total loans	$7,732,046		$    146,917		$     635,561		$11,220		$     1,067		$211,112		$8,737,923

 

BancorpSouth, Inc.
Selected Loan Data
(Dollars in thousands)
(Unaudited)
	As of
	Jun-12		Mar-12		Dec-11		Sep-11		Jun-11
Unpaid principal balance of impaired loans	$259,703		$    266,483		$    287,099		$342,839		$  374,760
Cumulative charge-offs on impaired loans	59,326		55,371		52,176		62,950		71,103
Impaired nonaccrual loan and lease outstanding balance	200,377		211,112		234,923		279,889		303,657
Other non-accrual loans and leases not impaired	39,869		42,115		41,875		34,590		27,419
Total non-accrual loans and leases	$ 240,246		$    253,227		$    276,798		$314,479		$  331,076
Allowance for impaired loans	23,939		25,546		39,708		38,657		46,810
Nonaccrual loans and leases, net of specific reserves	$ 216,307		$    227,681		$    237,090		$275,822		$  284,266
Loans and leases 90+ days past due, still accruing	$     1,632		$        1,698		$        3,434		$    7,354		$      3,980
Restructured loans and leases, still accruing	25,071		30,311		42,018		40,966		44,786
Total non-performing loans and leases	$ 266,949		$    285,236		$    322,250		$362,799		$  379,842
Allowance for impaired loans	$   23,939		$      25,546		$      39,708		$  38,657		$    46,810
Allowance for all other loans and leases	151,908		156,231		155,410		161,029		150,817
Total allowance for credit losses	$ 175,847		$    181,777		$    195,118		$199,686		$  197,627
Outstanding balance of impaired loans	$ 200,377		$    211,112		$     234,923		$279,889		$  303,657
Allowance for impaired loans	23,939		25,546		39,708		38,657		46,810
Net book value of impaired loans	$ 176,438		$    185,566		$     195,215		$241,232		$  256,847
Net book value of impaired loans as a %
of unpaid principal balance	68%		70%		68%		70%		69%
Coverage of other non-accrual loans and leases not impaired by
the allowance for all other loans and leases	381%		371%		371%		466%		550%
Coverage of non-performing loans and leases not impaired
by the allowance for all other loans and leases	228%		211%		178%		194%		198%

 

BancorpSouth, Inc.
Geographical Information
(Dollars in thousands)
(Unaudited)
	June 30, 2012
	Alabama and								Greater
	Florida								Memphis				Texas and
	Panhandle		Arkansas		Mississippi		Missouri		Area		Tennessee		Louisiana		Other		Total
LOAN AND LEASE PORTFOLIO:
Commercial and industrial	$   57,950		$  191,231		$  340,454		$ 56,176		$  17,036		$     83,517		$  248,738		$  502,576		$1,497,678
Real estate
Consumer mortgages	104,590		266,625		748,850		44,442		83,380		161,013		448,735		46,785		1,904,420
Home equity	59,969		38,511		168,552		24,417		66,302		74,942		61,547		2,005		496,245
Agricultural	6,632		81,867		68,990		3,439		9,497		14,043		62,527		4,980		251,975
Commercial and industrial-owner occupied	116,744		159,231		454,193		81,542		90,680		89,351		250,432		46,714		1,288,887
Construction, acquisition and development	95,278		60,747		251,977		44,756		91,437		88,684		174,818		27,325		835,022
Commercial real estate	190,195		346,586		360,704		204,377		115,061		101,883		377,008		52,934		1,748,748
Credit cards	-		-		-		-		-		-		-		101,085		101,085
All other	30,890		86,350		190,620		6,852		56,187		49,481		95,729		92,226		608,335
Total loans	$ 662,248		$1,231,148		$2,584,340		$466,001		$529,580		$   662,914		$1,719,534		$  876,630		$8,732,395
CAD PORTFOLIO:
Multi-family construction	$           -		$             -		$           10		$           -		$            -		$       1,710		$         658		$             -		$       2,378
One-to-four family construction	25,665		11,256		43,836		6,307		10,264		35,178		35,001		15,141		182,648
Recreation and all other loans	2,046		8,604		31,321		309		3,400		3,950		16,403		-		66,033
Commercial construction	13,688		5,383		44,714		2,519		7,801		8,649		28,439		1,736		112,929
Commercial acquisition and development	14,745		16,160		53,043		14,349		31,457		15,821		34,329		2,666		182,570
Residential acquisition and development	39,134		19,344		79,053		21,272		38,515		23,376		59,988		7,782		288,464
Total CAD loans	$   95,278		$     60,747		$   251,977		$  44,756		$  91,437		$     88,684		$   174,818		$    27,325		$    835,022
NON-PERFORMING LOANS AND LEASES:
Commercial and industrial	$     2,551		$       1,167		$         663		$    3,938		$            5		$         145		$       4,606		$         524		$      13,599
Real estate
Consumer mortgages	3,124		4,774		10,801		1,014		1,938		3,960		6,945		6,836		39,392
Home equity	1,038		34		446		144		478		464		387		4		2,995
Agricultural	-		5,314		952		1,294		1,041		244		-		1		8,846
Commercial and industrial-owner occupied	7,455		4,160		7,973		1,721		4,065		4,385		2,194		3		31,956
Construction, acquisition and development	18,342		1,476		8,152		12,418		26,503		13,776		24,623		4,936		110,226
Commercial real estate	9,723		2,846		9,879		19,139		3,804		3,727		2,392		485		51,995
Credit cards	-		-		-		-		-		-		-		2,861		2,861
All other	317		2,162		1,081		94		13		890		366		156		5,079
Total loans	$   42,550		$     21,933		$     39,947		$  39,762		$   37,847		$     27,591		$     41,513		$    15,806		$    266,949

 

BancorpSouth, Inc.

Selected Additional Information

(Dollars in thousands)

(Unaudited)

June 30, 2012

Alabama

Greater

and Florida

Memphis

Texas and

Panhandle

Arkansas

Mississippi

Missouri

Area

Tennessee

Louisiana

Other

Total

OTHER REAL ESTATE OWNED:

Commercial and industrial

$       564

$        212

$              -

$           -

$          814

$           -

$           -

$      -

$    1,590

Real estate

Consumer mortgages